Federal Reserve Bulletin, 1967-01

FEDERAL RESERVE B U LLETIN JANUARY 1967 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. Digitized for FRASER https://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. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONTENTS =% 1 Industrial Production in 1966 Staff Economic Studies: 15 Summaries 18 The Role of Financial Intermediaries in U.S. Capital Markets 32 Size and Composition of Consumer Saving 51 Law Department 73 Announcements 84 National Summary of Business Conditions 86 Guide to Tabular Presentation 87 Financial and Business Statistics, U.S. 159 International Financial Statistics 179 Board of Governors and Staff 180 Open Market Committee and Staff; Federal Advisory Council 181 Federal Reserve Banks and Branches 182 Federal Reserve Board Publications 185 Index to Statistical Tables Inside back cover Map of Federal Reserve System EDITORIAL COMMITTEE Charles Molony Ralph A. Young Daniel H. Brill Robert C. Holland Robert Solomon Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions ex­ pressed except in official statements and signed articles. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 THE LONG EXPANSION in industrial activity since 1961 con­ tinued until the autumn of 1966 and then leveled off. From the autumn of 1965 to the spring of 1966 the rate of industrial expansion had accelerated rapidly, from an already high level of activity and resource utilization. That acceleration reflected sharp increases in business and consumer demands, which were being stimulated by a large step-up in actual and prospective Federal expenditures for the war in Vietnam. The expansion in the volume of industrial output in 1966 raised further the high rate of manufacturing capacity utilization, but there was a slight decline from this high rate at the year-end. Manpower resources also were utilized more fully, and the rate of CHART 1 INDUSTRIAL OUTPUT: Levels in '66 reflect in part rising stocks of consumer goods and materials Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

2 FEDERAL RESERVE BULLETIN • JANUARY 1967 unemployment was reduced further to the lowest average level since 1953. From early 1966 to October the rise in industrial production slowed down, and an increased proportion of the total went into business inventories—including various materials used for de­ fense equipment. Industrial production in December was at the same level as in October and November and only 1 per cent higher than at midyear. With the greatly enlarged volume of new business equipment added in recent years and with more being added, business stocks of major consumer goods and industrial materials were mounting as final sales had leveled off. As a re­ sult, production of those goods was moderately curtailed, as in­ dicated in Chart 1. The year-end level of total industrial output, however, was still 6.5 per cent higher than in December 1965. In the period from 1964 to the spring of 1966, when the average annual rate of industrial expansion was about 10 per cent, whole­ sale prices of industrial commodities generally advanced follow­ ing a number of years of stability. While price advances were limited by various Federal actions, the upward pressures in mar­ kets, such as those for metals and textiles, contributed to increased business demands for inventory accumulation. By the middle of 1966, when market supplies became more readily available, the rise in prices of industrial commodities began to slacken. Whole­ sale prices of foods and farm products, which had risen sub­ stantially from early 1965 to 1966, were turning downward in the autumn. Retail prices of consumer goods were rising at a slower pace. Prices of services, however, were continuing their earlier rate of increase. DEMAND SHIFTS IN A major feature of the 1966 economic situation was the rapid TOTAL INDUSTRIAL OUTPUT expansion in business demands for equipment in response to earlier sharp expansion in industrial activity and to the stimulation pro­ vided both directly and indirectly by defense and other govern­ ment programs. Rising output in this major sector of industry contributed substantially to the increase in total industrial produc­ tion in 1966, as indicated in Chart 2, which shows the relative importance of major market categories of production over the period since 1960. New orders for business equipment rose sharply until midyear. After that they declined moderately—in part as a result of tight credit conditions, suspension of the investment tax credit, and general signs of a slower pace in economic activity. Export de- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

4 FEDERAL RESERVE BULLETIN • JANUARY 1967 starts curtailed about one third—reflecting largely changes in the cost and availability of mortgage credit. Consumer demands for durable goods declined in the spring of 1966, recovered in the summer, but weakened again at the year­ end. For most nondurable consumer goods, demands and output continued to expand during the year. By the fourth quarter, how­ ever, the total value of retail sales was running only 3 per cent above that a year earlier—about the amount of the rise in con­ sumer prices for goods. The remaining major category of final industrial products is output of specialized equipment for defense purposes; this showed a rapid expansion throughout 1966 to a volume up one-half from early 1965. The further acceleration in inventory accumulation after the spring of 1966 reflected mainly increases in consumer goods and industrial materials, as illustrated in Chart 1. Materials for further industrial processing account for three-fourths of total inventories held by manufacturers. Output of these materials rose more rapidly than end-products output after the spring, resulting in the changes in inventory accumulation indicated in the bottom part of Chart 2. These comparisons and their bases are described in a recent staff economic study; this study is summarized on page 15 of this Bulletin. BUSINESS Production of business equipment continued to expand rapidly EQUIPMENT in 1966 and in December was 12 per cent higher than a year earlier. Part of the increased equipment demand was a consequence of the need to expand capacity in defense-related industries and in materials and consumer goods industries in which activity was being stimulated by heavy defense expenditures. For the year as a whole, output of business equipment was 16 per cent above that of 1965. This represented an even faster rate of increase than the average annual rate of 10 per cent that had occurred between mid-1961 and late 1965. The rate of expansion in business equipment production was somewhat slower in the fourth quarter than it had been in the earlier part of the year. Output reached near-capacity levels in some equipment industries by midyear, thus slowing the rate of further expansion in outlays as well as activity in those industries. A weakening in demand occurred as businesses completed long­ term expansion projects, and as output of a number of industrial commodities leveled off or declined. Restrictive monetary policies, the suspension of the investment tax credit, and recent rises in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 5 machinery prices tended to encourage businessmen to postpone or curtail ordering some new equipment. The business equipment grouping—which includes output of equipment for export and for government use but which is domi­ nated by output for domestic private business use—has risen faster than has industrial production as a whole in each of the last 5 years. It now accounts for a larger proportion of the total production index than at any other time in the post-World War II period. At the end of 1966 business equipment output exceeded by about one-sixth its longer-run relationship to total industrial production. Estimates indicate that total manufacturing capacity may have increased by nearly 7 per cent in 1966, compared with average annual increases of about 4.5 per cent between the end of 1961 and the end of 1965. Production of industrial equipment—that portion of business equipment purchased largely by manufacturing, public utility, and Output of INDUSTRIAL EQUIPMENT levels off in late '66 as Seasonally adjusted data. Dept, of Commerce-SEC data are expressed at annual rates. Latest figures: output, December (preliminary); outlays, second quarter 1967. Estimates of outlays for fourth quarter 1966 and first and second quarters of 1967 based on anticipated expenditures reported in late October and November 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

6 FEDERAL RESERVE BULLETIN • JANUARY 1967 mining concerns—expanded in the first three quarters of 1966. But output leveled off at the end of the year as some major underly­ ing demand forces worked against each other. The rise earlier in the year was sustained in part by large increases in the output of electric transformers and control apparatus. New orders by public utilites for power generators accelerated the sharp rise that had ORDERS for electric power equipment run far ahead of SHIPMENTS Centered, 2-quarter moving averages based on Edison Electric Institute quarterly data. Data include orders and shipments for domestic use only. Latest figures: 3rd quarter (partly estimated). begun in 1963, as shown in Chart 4. Unfilled orders for electrical equipment have nearly tripled during the last 4 years, and produc­ tion seems certain to rise further. Much industrial equipment, however, is purchased by manufacturers of autos, home goods, apparel, construction materials, and materials for further process­ ing. During 1966 production of these goods leveled off or fell below their peaks, and this slackening contributed to the reduc­ tion in demand for industrial equipment as a whole. The Commerce-SEC survey of expenditures for new plant and equipment, conducted in late October and November, re­ ported that manufacturers intend to increase their outlays at a much slower rate in the first half of 1967 than they had in the recent past (Chart 3). Outlays for the second quarter of 1967 are anticipated by manufacturers to be only about 2 per cent above the level estimated for the fourth quarter of 1966. Production of freight and passenger equipment—including commercial aircraft, ships, railroad equipment, and trucks—in­ creased in 1966, but at a less rapid rate than in 1965. The rise re­ flected for the most part substantial increases in output of commer­ cial aircraft, and it slowed as output of some aircraft manufac- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 7 turers reached near-capacity rates. Scheduled deliveries of new commercial aircraft extend for several years ahead, so production should remain high in 1967. Commercial aircraft represents about 40 per cent of the freight and passenger grouping but only 7 per cent of total business equipment. Private shipbuilding and production of railroad cars have not increased since the early part of 1966—thus helping to slow the rise in the total freight and passenger equipment index. Output of trucks has been at record levels, but trade reports suggest there was a slight easing in demand at the end of the year. Some truck­ ing concerns have postponed buying because of increased borrow­ ing costs and the changes in the tax laws relating to investment credit. Commercial equipment production may also have been affected by restrictive credit policies and the tax law change. Output rose strongly in the first half of the year but the rate of rise moderated in the second half. Output of farm equipment rose in 1966; this reflected the siz­ able rise in agricultural incomes and the continuing trend toward larger sizes of farms and increased mechanization. CONSUMER GOODS Following a sharp acceleration in late 1965, demands for con­ sumer goods moderated after the spring of 1966, but consumer prices continued to rise. During the second and third quarters of 1966 the rate of increase in disposable personal income slowed down. Output of consumer goods, which had increased at an an­ nual rate of about 6 per cent in each of the previous years of the long expansion, showed slower growth after the first quarter of 1966. (See Chart 5.) For the year as a whole output of con­ sumer goods was 4.7 per cent above that in 1965. Automobile sales and output declined in the spring of 1966 from the sharply advanced levels first reached in early 1965; production of home goods and apparel expanded further in late 1965 and early 1966 and then showed some downtrend after midyear as business inventories reached advanced levels. These declines were associated with a slower rate of increase in con­ sumer instalment credit. On the other hand, both production and sales of consumer staples accelerated during the summer, but for the year 1966 as a whole they rose by about the usual amount, which is 4 per cent. Automobiles. Sales of new domestic automobiles in the 1966 model year, which closed in late September, were a record 8.5 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN • JANUARY 1967 million units, slightly above the 8.3 million units sold in the 1965 model year and well above the 7.8 million in the 1964 model year. Sales of imported cars rose to 660,000 units in 1966—top­ ping the previous record of 600,000 units sold in 1959. Output and deliveries of domestic automobiles followed an uneven course within the 1966 model year. During the last quarter of 1965 and the first quarter of 1966, assemblies averaged a record seasonally adjusted annual rate of 9.3 million units. Sales too were strong—at an average rate of 9 million units. Sales declined abruptly in April and May, and for the second quarter of 1966 the annual sales rate was 7.8 million units. The decline reflected in part a reaction from the sharply advanced buying rates reached earlier and the impact of widespread public reports regarding the safety features of automobiles, as well as the slow­ ing of the rise in disposable income in early spring. Despite the decline in sales, production of automobiles was maintained at a relatively high level, and dealers’ inventories showed a substantial increase. New-car stocks reached a record high of 1.7 million units on June 30, one-fourth higher than a year earlier. During the third quarter of 1966, sales recovered to a rate of about 8.4 million units, while production was cut sharply. Thus by late September inventories were still high, but they had been reduced to a more manageable level. In the early weeks of the 1967 model year, deliveries of new autos were large as initial consumer reaction was favorable. How­ ever, in December and early January sales fell to a seasonally adjusted annual rate of less than 8 million units. As a consequence, production schedules were cut back further in January to bring output into line with the lower sales rate. At the year-end dealers’ stocks had been reduced to 1.4 million units—still considerably above their longer-run relation to sales, as shown in Chart 6. Home goods and apparel. Production of home goods continued to increase in early 1966, then declined irregularly during the remainder of the year. Retail sales of these goods leveled off, following a sharp expansion in late 1965. Demand for color television sets continued high, but demands for appliances, furni­ ture, and rugs were curtailed. Factory stocks of these and other home goods had been reduced by heavy buying in late 1965 and by work stoppages in the spring of 1966. Thereafter, factory stocks and inventories of home goods at retail stores showed a marked rise, as indicated by a combined series for business inventories of these consumer durable goods (Chart 6.) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 9 LEVELING in retail sales is accompanied by slowdown in output of consumer goods CHART 5 ■■■■■■MHMMi^^^WKa i Seasonally adjusted indexes. Sales and prices based on Dept, of Commerce and Dept, of Labor data. Latest figures: commodity prices, November; other series, preliminary for December. Production of apparel reached new peaks at midyear and then receded moderately. The major cutbacks in the autumn were in men’s clothing, where prices had shown the largest increases. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN • JANUARY 1967 By the year-end, reductions in output had spread to some other apparel industries. As may be seen in Chart 5, over-all output of apparel and home goods began to show a marked acceleration in 1964 above its longer-run trend. Business inventories also began Sales of CONSUMER DURABLE GOODS slow; stocks increase Seasonally adjusted indexes. Sales and retail stocks are based largely on combinations of physical volume data derived by the Federal Reserve from data supplied by Dept, of Com­ merce, major chain department stores, and trade associations. Sales indexes for home goods are based on a 2-month moving average. Latest figures: December, partly estimated. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 11 to increase faster than before, influenced in part by prospects for rising prices. The marked expansion in retail sales in late 1965 and early 1966 supported the relatively high inventories until recent months when sales leveled off and selective curtailments in output began to be made. INDUSTRIAL Fluctuations in materials output—which amounts to over half of MATERIALS total industrial production—broadly reflect the changes that occur in output of consumer goods and equipment and in the level of activity in the construction industry. The over-all expansion in these sectors was not nearly so large in 1966 as in other recent years, whereas the expansion in materials production was up 8.5 per cent from 1965 as a whole, the same as from 1964 to 1965. The accompanying rise in manufacturers’ inventories of materials was so large that output of materials was being curtailed at the end of 1966. Materials show larger fluctuations in output and inventories than do final products, as is seen in Chart 7 for the metal indus­ tries. The rapid rise in output of durable goods materials in the first half of 1966 reflected in part the aftermath of the threatened steel strike in September 1965 and the subsequent sharp liquidation of steel inventories. Steel consumption by the metal goods industries continued high during this period, as production of finished metal products—autos, appliances, and equipment—and heavy nonresidential construction continued to increase in the first half of 1966; by midsummer, output of steel had risen to the high levels of a year earlier. Since then, with the lessening in demands for autos and appliances, steel production has declined. In December it was 10 per cent below the summer peak. Production of nonferrous metals reached a peak in the spring and then declined moderately. With limits for some major materi­ als set by plant capacity and the availability of ores and concen­ trates, output was maintained during the rest of the year. For the year as a whole, production of nonferrous metals was 9.5 per cent above 1965—almost as large an increase as from 1964 to 1965. Output of aluminum, which has been close to capacity opera­ tions in recent years, increased further in 1966 and in December was 6 per cent above its year-earlier level. Because of strikes and political problems in the major copper-producing countries, world production of copper has been curtailed. The pressures on domes­ tic copper fabricators, however, have been eased by substantial Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN • JANUARY 1967 quantities released from the national stockpile and by export controls. Output of construction materials accelerated in the last quarter of 1965 and by March 1966 was at a new high. Since then output has declined and at year-end was 6 per cent below the spring peak. Lumber production in late 1965 and early 1966 was stimulated by the escalation of the war in Vietnam and by the threat of a strike. With the peaceful settlement of the labor contract and with the sharp decline in private residential construction activity, lum- Output of MATERIALS FOR DURABLE GOODS declines, reflecting a slowdown in finished metal goods Index of metal goods materials based on published data for durable goods materials minus construction materials. Finished metal goods represents a combination of published series for automotive products, household appliances, and equipment. Seasonally adjusted data. Latest figures: preliminary for December. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN 1966 13 ber stocks began to rise, a factor that contributed to a downward adjustment in lumber production of almost 20 per cent by Decem­ ber. However, output of some other major construction materials —concrete products and structural metal parts—has remained close to earlier advanced levels, reflecting the continued high rate of public and private nonresidential construction activity. Other major industrial areas in which changes in inventory of materials and in final demands have been apparent are textiles, paper, and chemicals. Total output of these and other types of nondurable materials rose further in the first half of 1966 and then showed little additional growth (Chart 8). In textile mar­ kets, there was an acceleration in military and civilian demands, which, together with capacity limitations, led to rising prices until some marked adjustments developed in output of synthetic and wool fabrics. Reflecting a large expansion in the chemical industry’s capacity to produce fibers, output of man-made fibers rose by 15 per cent from the summer of 1965 to May 1966. As inventories accumulated, prices fell and output was sharply cur­ tailed during the rest of 1966. Large backlogs contributed to some Output of materials for processing NONDURABLE GOODS levels off CHART 8 TEXTILES PAPER INDUSTRIAL CHEMICALS Seasonally adjusted data. Latest figures: preliminary for December. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN • JANUARY 1967 further expansion in the cotton industry, but a drying up of new orders for yarns and fabrics brought some decline in output by November. Output of total industrial chemicals in the first 6 months of 1966 rose at an annual rate of 12 per cent—the same as in 1965 —but leveled off in the summer, partly because of the cut­ back in man-made fibers. The advance in output of industrial chemicals was resumed in October. Production of basic organic chemicals and plastics materials continued to advance at a rapid rate through most of the year. Output of paper products in the first half of 1966 maintained the rate of expansion of the past few years. In the last half of the year, however, it showed little further growth because of the decreased demands for building paper and paperboard from the residential construction and consumer goods industries. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ set forth are those of the authors and do not nors of the Federal Reserve System and of necessarily indicate concurrence by the the Federal Reserve Banks undertake studies Board of Governors, by the Federal Reserve that cover a wide range of economic and Banks, or by the members of their staffs. financial subjects, and other staff members Single copies of the full text of each of prepare papers related to such subjects. the studies or papers that are summarized From time to time the results of studies that below are available in mimeographed form. are of general interest to the economics pro­ The list of publications at the back of each fession and to others are summarized—or Federal Reserve Bulletin includes a sepa­ in some instances printed in full—in this rate section enumerating the studies for section of the Bulletin. which copies are currently available in that In all cases the analyses and conclusions form. Study Summaries MEASURES OF INDUSTRIAL PRODUCTION AND FINAL DEMAND Clayton Gehman and Cornelia Motheral—Staff, Board of Governors Paper presented at the Conference on Research in Income and Wealth, Washington, D.C., December 1-2, 1966 This study updates the description and anal­ these data can serve as links between meas­ ysis of market groupings of the industrial ures of final demand and measures of indus­ production index that were first published trial prices and resource use. in Industrial Production—1959 Revision. In the revision the index will incorporate It also presents improvements and new fea­ the changes in Census Bureau-Federal Re­ tures that will be provided in a comprehen­ serve benchmark production indexes from sive revision of the index now under way— 1954 to 1958 and 1958 to 1963. The nearly including the development of monthly gross complete benchmark for 1958, preliminary and net measures of output expressed in benchmark calculations for 1963, and pre­ terms of constant dollars as well as in index liminary annual index calculations for 1964 number form. The study notes the use of and 1965 indicate little revision in the total the market groupings to provide measures index and its major market and industry of changes in supply for major categories divisions for those years relative to 1954. of goods, but its main emphasis is on how A new monthly breakdown of the index 15 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN • JANUARY 1967 into end products and materials for process­ and apparel. In 1965-1966, as in five pre­ ing is shown in the study, and these series are vious expansions in the postwar period, related to new groupings of published data output of home goods and apparel has been on the book value of business inventories. at advanced levels relative to its longer-run Differences between output of processing trend. Construction materials output has materials and output of end products are expanded more in recent years than the compared with fluctuations in the book value available constant-dollar construction meas­ of manufacturers’ inventories of materials ures; both have declined in 1966, reflecting and related data. In 1966, as in 1965, the the construction slowdown. Business equip­ production series provided useful indicators ment output is also at sharply advanced of impending inventory changes not supplied levels relative to trend and to the level of by other sources. the total industrial production index. For the post-World War II period, The paper suggests the value for eco­ monthly and quarterly fluctuations for 37 nomic analysis of developing supplementary series, including comparable components of monthly constant-dollar measures for farm the gross national product in constant dol­ output, transportation of commodities, trade, lars, are charted; differences suggest prob­ construction, and merchandise exports and lems of measurement with important impli­ imports, and improvement in related eco­ cations for general economic analysis. Study of consumer goods measures focuses nomic series in order to provide better in­ on the steady growth of consumer staples formation than is now available for analyzing and the cyclical fluctuations of home goods commodity output and flows. FIRMS’ DEMANDS FOR MONEY: THE EVIDENCE FROM THE CROSS-SECTION DATA William J. Frazer, Jr.—Staff, Federal Reserve Bank of Chicago Prepared as a staff paper in September 1966 The relation between firms’ cash balances not all of these can be true, although each and the size of firms (measured by assets or appears to fit certain sets of data. The pres­ sales) is interesting partly because it affords ent paper, therefore, introduces a compound a means of testing hypotheses about de­ hypothesis containing elements of two of the mands by firms for cash (money) balances. above and outlines a theory explaining the Hypotheses have included the following: various relationships. (1) the Friedman hypothesis that cash in­ The compound hypothesis requires that creases more than in proportion to asset size; money balances of firms increase less than (2) the Baumol—Tobin hypothesis that cash in proportion to asset size (or sales) be­ increases less than in proportion to asset yond a given size. It suggests an asset-size size; and (3) a simple quantity-theory hy­ or Friedman-type (“wealth”) effect on over­ pothesis that cash increases in equal propor­ all liquidity, economies in the use of cash tion to income, or to a measure of transac­ as firms increase in size, and a rise in the tions such as sales or receipts. Obviously, velocity of cash (that is, the sales-to-cash Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STAFF ECONOMIC STUDIES 17 ratio) as firms increase in size. These gins to make expert cash management and changes also involve a release of cash to operations in securities worthwhile. Government securities as the asset-size ef­ In presenting results in support of the fect on over-all liquidity takes the form of compound hypothesis, this paper demon­ strates that differences in demands for cash a reduction in bank loans relative to Gov­ by manufacturing industries can be ex­ ernment securities. The relative decline in plained largely by differences in firm sizes. bank loans reduces the need for cash to meet This proposition is important, in part, be­ liabilities via a variant of Keynes’ precau­ cause Allan H. Meltzer, and G. S. Maddala tionary motive for holding money, and the and Robert C. Vogel have presented results relative decline in cash in effect releases for firms by industry groups that appear to funds to Government securities, as size be­ support the quantity-theory hypothesis. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Study THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS Daniel H. Brill, with Ann P. Ulrey— Staff, Board of Governors As noted in the introduction to this section, As in all staff studies, the author is re­ the Bulletin from time to time publishes, sponsible for the analyses and conclusions in full, staff studies on economic and finan­ set forth, and the views expressed are not cial subjects that are of general interest in necessarily those of his colleagues or of the the field of economic research. Board of Governors. In 1965, financial institutions in the United adjusting their portfolios and the returns States supplied borrowers with more than they can offer to savers. In such periods, $62 billion—or 85 per cent of all money more sophisticated savers tend to move their raised through the credit markets. In the funds out of institutions and directly into period from 1961-64, these institutions sup­ financial instruments, purchasing securities plied 83 per cent of the credit market’s principally of the Federal Government and funds. In the mid-1950’s, financial inter­ of State and local governments. Thus, in mediaries accounted, on average, for 78 per 1966, a year of strong credit demands and cent of all funds flowing into credit markets. monetary restraint, the proportion of credit I cite these figures to emphasize that the flows that have been intermediated by insti­ transformation of savings in the United tutions has fallen to about 66 per cent, from States is, and for some time has been, ac­ the proportion of about 85 per cent in 1965. complished primarily through the interme­ While the adjustments made by inter­ diation of financial institutions. The direct mediaries to such fluctuations in the volume flow of funds from savers to borrowers is of savings flowing through them is a fasci­ usually a minor element in the U.S. financial nating story, with repercussions not only scene. throughout the structure of finance, but also There have been periods of deviation throughout the structure of production, our from the usual pattern of financial flow, emphasis today is on the longer-term con­ however. One such deviation occurred in figuration of U.S. financial flows. And the 1955, another in 1959, and another has longer-term picture, abstracting from these been occurring in 1966. The course of the cyclical episodes of shifts in savings channels, deviation in all cases has been the same: is one dominated by financial intermediaries. strong credit demands and strong monetary This paper attempts to explore some of the restraint. When these two strong economic causes and consequences of the high pro­ forces conjoin, interest rates in financial portion of intermediation in the U.S. saving­ markets move up rapidly, more rapidly than investment process. financial institutions can accommodate by I shall not bore you with a detailed cata­ log of all types of financial institutions that Note.—-This article is based on a paper submitted for the International Symposium on Saving and the have emerged in this country, nor shall I re­ Financing of Local Facilities, sponsored by the Caisse cite to you volumes of statistics on financial des Depots et Consignations, in October 1966 at Paris, France, to mark its 150th anniversary. flows and stocks so dear to the hearts of ex- 18 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 19 perts. Rather, the focus of my remarks will 1950’s this share had fallen below 20 per be on the factors that have given rise to this cent; and in the last 3 years, 1962-65, mar­ emphasis on intermediation, and on the con­ ket acquisitions averaged only about 2.5 per sequences this has had for the shape of the cent of household financial saving. The re­ U.S. financing mechanism. Nor shall I limit mainder—except for net additions to cur­ my role to that of a mere reporter; I would rency holdings—flowed through financial be remiss in my obligations if I were to avoid intermediaries. pointing out the pitfalls and shortcomings This massive shift from direct market ac­ in, as well as the advantages conferred by, a quisitions of securities to intermediation of financial system in which institutions play so savings flows has occurred even without large a role. much rise in the proportion of incomes saved by consumers, or in the proportion saved in INSTITUTIONS AND CONSUMER SAVING financial form. Data for earlier periods are FLOWS not strictly comparable, but the evidence The classic concept of a market as a meet­ available suggests that consumer acquisition ing place for buyers and sellers visualizes the of financial assets in the 1922-29 period middlemen of that market in the role of amounted to about 10 per cent of disposable matchmakers—simply bringing together the income, not much below the 11 per cent actual participants among whom mutually average in the 1962—65 period. acceptable matches can then be made. But Perhaps the most important reason for the the instruments offered by those seeking very marked change in the structure of con­ long-term credit are not, in general, the as­ sumer financial saving flows has been the sets that the bulk of the nonfinancial public rise in and diffusion of income, which has is willing and able to hold. These instru­ created a large class of small savers. Tradi­ ments—notes, bonds, equity shares—lack tionally this type of saver has emphasized one or more of the qualities sought by most liquidity and safety of principal over im­ savers, such as safety of principal, liquidity, mediate return or growth potential. And tra­ convenience, or accessibility in readily divis­ ditionally, these needs have been more easily ible denominations. It is precisely these and conveniently satisfied—particularly for qualities that financial intermediaries are in small savers—through financial institutions business to offer. In recent years they not than through financial market instruments. only have offered these qualities to the non­ The difficulty of access to markets where financial public but have offered them in in­ financial instruments are traded, the rela­ creasingly diversified forms and at increas­ tively large size at which individual transac­ ingly attractive rates of return. tions are possible, and the relatively high The success of intermediaries in captur­ costs involved in effecting small transactions ing a larger share of a rising volume of sav­ have all contributed to small savers’ prefer­ ing can be illustrated by a comparison of the ence for institutional saving. Moreover, the change in their role over the past four dec­ development of an elaborate apparatus of ades. In the 1920’s, somewhat over half of governmental insurance, guarantee, and the net increase in household financial assets supervision has made institutional saving was composed of securities purchased di­ even more desirable to the small saver seek­ rectly in the credit markets; by the mid- ing the attributes of liquidity and safety. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN • JANUARY 1967 Traditionally, too, the small saver has stitutions accommodate the vast bulk of the sought the protection of the insurance prin­ long-term credit demands in U.S. financial ciple. For savers whose predominant re­ markets. quirement is assurance that future needs can Before concluding this brief review of be met, individual accumulations of assets—- how consumers in the United States allocate however safe and easily converted into cash their financial savings, it would be desirable —often are not the most efficient way of to note two aspects of the saving structure. providing for those needs. The future mag­ First, the liabilities issued by the depositary nitude and cost of many contingencies are and contractual institutions so favored by unpredictable on an individual basis but can consumers are almost all of a fixed face be measured accurately for large groups. By value, that is, they are redeemable or pay­ applying insurance principles, a much able only for the contracted amount and do smaller aggregate accumulation can assure not fluctuate with changes in the level of all participants a given level of benefits than prices. The continued strong preference of would be needed individually. Here, too, consumers for such financial assets is an in­ governmental assistance (mainly through dication of the value consumers place on favorable tax treatment) has facilitated the liquidity and security of principal in choos­ growth of institutional saving in the form of insurance and pension plan reserves. ing repositories for saving. Perhaps because In seeking liquidity for their savings, con­ the United States has been spared the rav­ sumers have turned to such institutions as ages of severe inflation, there is no evident commercial banks (particularly into bank strong disposition on the part of the bulk of savings and time accounts), mutual savings consumers to seek savings outlets that tend banks, savings and loan associations, and to provide protection against price increases credit unions. The flow of funds into such at the risk of fluctuation in nominal value. “depositary institutions” has accounted for The second aspect of the financial saving more than half of all consumer financial sav­ structure worth noting is the multitude of ing in recent years. In seeking protection choices among institutions and savings in­ against longer-term contingencies—for re­ struments available to the small saver. The tirement, or for protection of a family’s eco­ U.S. financial scene is marked by aggressive nomic status after death of the principal competition between institutions for small earner—savers have relied principally on blocks of saving, competition among insti­ the contractual institutions, life insurance tutions of the same type and between differ­ companies, and pension plans. The flow of ent types. This competition has led to the saving into these institutions has represented offering of a wide variety of services and between one-third and two-fifths of total conveniences to attract savers as well as to a consumer financial saving. high rate of return on small savings. The In terms of dollar magnitudes, consumer small saver is assiduously courted and hand­ savings accounts at what I have called “de­ somely rewarded, and financial institutions positary institutions” amount to more than have in consequence flourished even though $300 billion, and the reserves of “contrac­ the “spread” between the rates paid savers tual institutions” to more than $250 billion. and those charged borrowers is quite nar­ Together, the depositary and contractual in­ row. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 21 CONTRACTUAL INTERMEDIARIES come and the incentive to supplement them is strong. Furthermore, at least until re­ As was noted above, recent savings patterns cently, social security coverage has had contrast strongly with those of the 1920’s. many important gaps. Inflows. Since the 1920’s the savings The rise of pension plans covering work­ flowing from consumers have shifted from ers as part of their employment contracts is direct market participation to financial in­ largely a wartime and postwar development. termediaries. And there have been shifts During World War II, the growth of cor­ in flows among intermediaries. Contractual porate pension plans received a major im­ flows of all kinds made up about 16 per petus from wage control policies that severely cent of consumer saving in the 1920’s. In limited the normal range of collective bar­ the mid-1950’s, such flows accounted for a gaining. Union emphasis shifted to demands far larger proportion—about 40 per cent— for fringe benefits, and the establishment of of a greatly increased total. Since 1960, pension funds—more clearly than most such however, although absolute amounts have benefits—represented a measurable eco­ continued to climb rapidly, the share in con­ nomic value to covered employees. At the sumer saving of contractual flows has fallen same time, tax advantages make it possible to about 33 per cent, reflecting the even for employers to grant the union a larger more explosive growth of savings in deposi­ economic package, as measured by eventual tary form. benefit to covered workers, at lower cost in The principal recipients of contractual this fashion than most others.1 savings flows are life insurance companies, Since 1954, the assets of private pension corporate pension funds, and the retirement plans have increased fivefold, from $13 bil­ systems operated by State and local govern­ lion to $70 billion. Pension plans adminis­ ment units. All of these have experienced tered by insurance companies—usually major growth throughout the postwar those involving smaller groups of employees period, although for life insurance com­ and smaller asset accumulations—have panies the long-term growth trend has grown from $10 billion to nearly $28 billion slowed somewhat; more recently the strong­ in the past dozen years. And retirement sys­ est growth has been in reserves to provide tems operated by State and local govern­ pension and retirement benefits. mental units have built their reserves from The increased emphasis in recent decades less than $10 billion to about $35 billion. on financial provision for old age reflects a number of different facets of American eco­ 1 To qualify for tax benefits, almost all private pen­ nomic life. Life expectancy has risen as also sion plans are funded; that is, provision is made for meeting future obligations at the time credits are has population mobility, thus reducing the earned. Employer contributions for this purpose (in­ prevalence of established multigeneration cluding, in the case of plans that are not mature, a reasonable provision for funding past service obliga­ consumers able to accommodate the retired tions) are current expenses and tax deductible as such at little marginal cost. Federal programs for to the corporation. But they are not taxable to the employee until years later as benefits are paid, and providing retirement income through social then at the lower rates associated with reduced retire­ security have probably stimulated private ment income. Meanwhile, investment income received saving rather than reducing it since benefits by the fund during its period of accumulation is not subject to income tax and is fully available for com­ are minimal in relation to pre-retirement in­ pounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN • JANUARY 1967 Current estimates suggest that by 1980 ago, made up the bulk of the total. For all nearly 50 million jobs will be included in of these institutions, both regulatory con­ pension plans supplementary to social se­ straints and investment policies have been curity coverage. changing over time, and in recent years the These magnitudes, plus the continuing changes have occurred at an accelerating growth of life insurance reserves, all repre­ rate. sent long-term inflows associated with con­ Investment standards for life insurance tractually fixed obligations that will call for companies are set by each State and apply a predictable schedule of outlays. With such to all companies doing business within the closely comparable obligations, it might be State. Since the major companies seek na­ supposed that the investment objectives and tionwide business and particularly wish to policies of the three major contractual inter­ sell policies in the largest and wealthiest mediaries would also be similar. In fact, States, the standards of these States tend to however, widely differing regulatory and be controlling, and for most purposes the traditional constraints upon the investment critical limitations have been those set by latitude enjoyed by life insurance com­ New York State. Among these, the most sig­ panies, private pension funds, and State and nificant has been the limit on equity share local retirement systems have led to very dif­ holdings by insurance companies to a minor ferent patterns of asset accumulation. fraction of their total assets. It is question­ Investment patterns. Broadly speaking, able, however, whether legal restrictions are life insurance companies divide their large the major constraint on investment policies, and comparatively stable inflows in varying since most insurance companies have not proportions among corporate debt securities made use of the allowed proportion of equity and mortgages—-both those secured by one- investment. to four-family residences and those on in­ It is in competing for a share of the pen­ come-producing property. Payments into in­ sion fund business that the life insurance sured pension funds are not ordinarily dif­ industry has found restrictions on equity pur­ ferentiated from insurance reserves (and un­ chases to be a distinct disadvantage. By ac­ til very recently could not legally have been quiring equities during a decade of advanc­ invested differently in any case). The unin­ ing market prices, many of the uninsured sured pension funds—those managed by funds have enjoyed investment experience trustees appointed by employer and em­ superior to the contracts life insurance car­ ployee representatives—have also become a riers could offer. This competitive disadvan­ major market for corporate securities, but tage was modified in 1962 when New York with a high and rising proportion of their State law was changed to allow insurance expanding inflows directed toward acquisi­ companies to segregate pension fund re­ tions of common stock. As for State and serves and invest them more liberally. The local retirement systems, the largest share of change did not apply retroactively to exist­ their funds reaching the capital markets is ing funds, however, and has had little im­ now channeled into corporate bonds—usu­ pact as yet. ally high quality, publicly offered issues. But Thus life insurance companies remain a substantial amount still goes into Govern­ predominantly investors in debt instruments ment securities which, until a dozen years —principally corporate securities and mort- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 23 gages. Because they are more lightly taxed pensive. This is particularly the case for than either most corporations or individuals smaller companies, since the costs of offer­ in the upper income brackets, they usually ing small debt issues to the public through find yields on State and local government underwriters are high (as a practical matter, securities (the income from which is exempt the designation of “small” may be applied to from Federal income tax) less attractive. most issues below about $10 million). Lack These instruments are ordinarily priced to of a widely known name may also preclude reflect the value of their tax-exempt income public flotation. Still other corporations in to highly taxed owners. Holdings of U.S. need of long-term financing may want in­ Government securities, which traditionally denture terms more flexible than those pos­ constitute a liquidity reserve, have been de­ sible in a publicly held issue. clining on balance for many years—thus re­ Private placements, in which an institu­ leasing funds for the acquisition of higher tional investor or more generally a group of yielding assets. This long downtrend reflects, participating institutions arrange to make a in part, the abnormally high level of Gov­ loan in security form, do not require regis­ ernment securities in insurance company tration with the Securities and Exchange portfolios at the end of World War II. Commission so long as the unregistered se­ Many State regulatory agencies apply curities are not later offered for resale to the earnings tests and other more or less me­ general public. Terms that are agreed on in chanical standards to the quality of the debt direct bargaining between borrower and securities insurance companies are free to lender can be more flexible than those as­ count as assets for regulatory purposes. sociated with public issues. There is also a While such inhibitions may deny eligibility saving in registration fees and underwriter’s to some potential borrowers, they have not compensation, though borrowers and lenders prevented insurance companies from play­ are frequently brought together—in return ing a major role as suppliers of long-term for a finder’s fee—by the same investment corporate financing. Traditionally, indeed, banking fraternity that underwrites and they have been the dominant suppliers of markets public issues. funds to the corporate bond market. A Since the mid-1950’s, insurance com­ dozen years ago, their holdings made up panies have moved steadily into private more than 60 per cent of the outstanding placements, and they are rarely in the mar­ total of corporate bonds, and even now— ket for public offerings. This trend reflects despite the increasing activity of pension and several factors, including some liberalization retirement funds—they account for about of investment standards in quest of higher half of the corporate long-term debt out­ yields. A relatively large proportion of pub­ standing. lic offerings consists of premium priced Nor have restrictions on investment policy bonds of top-rated issuers (especially elec­ prevented the insurance companies from tric, gas, and communication utilities) on pioneering in the private placement of debt which yields are lower than the rates that securities—an important financing tech­ can be obtained from borrowers with a nique that has broadened the availability of somewhat lower credit rating. But the in­ funds to borrowers who might find the pub­ creased emphasis on private placements re­ lic offering of a bond issue difficult and ex­ flects also the growing competition of other Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN • JANUARY 1967 institutional investors (first the private pen­ quisitions. Funds diverted from this outlet sion funds and more recently those adminis­ have been used to expand very sharply the tered by local governments) for available in­ financing of income-producing properties—■ vestment outlets. In recent years, private primarily multifamily residential and com­ placements have generally made up more mercial developments. Annual acquisitions than half of all corporate bond offerings and of such mortgages, which averaged less than have come to include many corporations $1 billion in the mid-1950’s, approached the which are of a size and credit rating that $3 billion level throughout the past 4 years. would permit the sale of their securities to This shift, like that from publicly offered the general public on average or better-than- bonds to private acquisitions, can be traced average terms. Nevertheless, they have to two distinct sets of forces. One has been chosen the convenience of private borrow­ the increasing competition for home mort­ ing arrangements with institutional invest­ gages offered by such specialized mortgage ors. lenders as the savings and loan associations. An additional factor contributing to re­ The other has been the insurance industry’s liance on the private placement technique own desire to acquire higher-yielding assets has been the growing emphasis insurance in­ through broader and more flexible lending vestors have placed on matching investment policies. As nationwide lenders, insurance outlays with the expected timing of their in­ company mortgage departments often lack flows. By arranging future loans—often with special familiarity with local real estate mar­ a staggered schedule of “takedowns” to kets, and their acquisitions of home mort­ match the precise times when borrowers ex­ gages have traditionally been concentrated pect to use the funds—the life insurance on those whose solvency is underwritten by companies have been increasingly able to agencies of the Federal Government—the commit their predictable inflows in advance, Federal Housing Authority and (in earlier avoiding loss of income through idle funds postwar years) the Veterans Administration. or low-yielding temporary investments. At Safer and more uniform than the so-called the same time this lending technique appeals “conventional” mortgage loan that local to borrowers by allowing them to make firm lenders are better equipped to appraise and plans with assured financing, while saving service, federally underwritten mortgages the cost of incurring long-term debts before also offer lower returns. In contrast, the the funds are actually needed. more recent preference for higher yielding Life insurance companies have long been loans on income-producing properties has major mortgage lenders, but their invest­ contributed strongly to the high level of ment patterns in this area also have shifted multifamily and commercial construction. notably in recent years. Mortgages on single­ Although the investment patterns of other family homes, which in the mid-1950’s ab­ contractual intermediaries differ greatly from sorbed 40 per cent of all funds available for those of life insurance companies, the gen­ market acquisitions (the same volume as eral direction of change in their investment outlays on corporate bonds), have declined policies over recent years can be explained in absolute and relative importance. In the in almost identical terms. The managers of past 4 years they made up, on average, only pension fund and retirement plan assets, like 15 per cent of total insurance company ac­ their counterparts in insurance companies, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 25 have moved in the direction of more flexible these bonds, moreover, the larger and more lending techniques and wider choices among aggressive funds have increasingly turned investment alternatives. For them also, these from reliance on the public market to par­ longer-run trends were accelerated in recent ticipation in private placements. years by two forces. First, the long period of Over the same period, managers of State high and rising inflows at all intermediaries and local pension funds have been making led to vigorous competition for investment comparable shifts, but starting from a very outlets, and, second, all managers have felt different base and under a very different set varying degrees of pressure to increase port­ of constraints. Severely circumscribed by folio yields. specified lists of legal investments, which These pressures may be less obvious for often limit holdings to governmental securi­ institutions whose obligations are fixed by ties and a narrow selection of high-quality contract than they are at depositary inter­ corporate bonds, major steps have neverthe­ mediaries, where the cost of funds has less been taken to achieve higher yields. Ac­ climbed steeply as savers have been offered quisitions of State and local securities by increasingly high rates of return. But there these governmental pension funds, which is vigorous intra-industry competition had constituted more than 25 per cent of all among life insurance companies and be­ fund assets, have all but ceased and some tween insurance companies and banks for existing holdings have been sold on the sec­ industrial group insurance contracts where ondary market. Strong market demand for cost estimates are based on expected invest­ municipal issues in the early 1960’s, particu­ ment return. larly from commercial banks, facilitated this In their attempt to improve investment shift in investment policy. Governmental results, managers of private pension funds units had often looked to their own pension operate under few legal constraints other funds as convenient “captive” markets for than the requirement for prudence and re­ sizable fractions of their own bond issues, sponsibility that applies to anyone serving which offer lower yields than other types of in a fiduciary capacity. Definitions of prud­ debt instruments because the income is ex­ ence, of course, change over time, and the empt from Federal income tax, although the shift in asset structure of pension funds is pension funds received no benefit from the striking in the aggregate. tax exemption features. In the early 1950’s, Government securi­ Holdings of U.S. Government securities, ties made up 19 per cent of all assets, and which in 1954 made up about half of the corporate bonds—almost entirely high­ total portfolio of these government pension grade, publicly marketed issues—constitu­ funds, had been worked down to 24 per cent ted more than half. Common stock account­ a decade later. Corporate bonds had risen to ed for slightly less than 25 per cent of the nearly half of the composite, and since most total. By the end of 1965, stocks comprised State and local funds are still barred from well over half—56 per cent—of the com­ taking part in private placements they have posite portfolio’s $70 billion valuation, Gov­ become a principal market for public offer­ ernment securities only 5 per cent (about the ings. For many funds, mortgages have be­ same as mortgage investments), and cor­ come a significant asset. porate bonds only 33 per cent. In selecting To sum up the trend for all contractual Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN • JANUARY 1967 intermediaries, investment managers have ing encouraged them actively to seek ex­ used wider investment latitude and rapidly pansion. Not only were their rates relatively increasing inflows to give their institutions a attractive, but many associations engaged in broader and more variegated role in U.S. widespread promotion and also offered con­ capital markets. sumer savers an increasingly wide network of convenient locations, convenient hours, DEPOSITARY INTERMEDIARIES arrangements for deposit-by-mail, grace The same factors affecting contractual in­ periods during which late deposits would termediaries have influenced investment pat­ earn interest from the first of the month, and terns of institutions receiving depositary­ other features of this kind. By the midtype savings: pressures arising from expand­ 1950’s, their annual savings inflows of ing inflows and the need to obtain higher nearly $5 billion made up half of the total yields, resulting in a trend toward more ag­ flow into depositary institutions, and the gressive and flexible investment policies. average effective return of about 3 per cent Inflows. The most dynamic factor for de­ on savings shares was a full 1.5 percentage positary intermediaries has clearly been the points higher than the average return paid dramatic expansion of depositary savings on time and savings accounts at commercial (up from an average flow of about $10 bil­ banks. lion annually in the mid-195O’s to about Deposits at mutual savings banks—-which $30 billion in the last 4 years) and the in­ in the United States are geographically more creasingly costly terms on which this growth limited than savings and loan associations, was achieved. offered rates more modestly in excess of The growth of depositary-type savings those available at commercial banks and during the 1960’s, and particularly the also grew, but at a much slower pace. To­ greatly expanded role of commercial banks gether the specialized savings institutions at­ in attracting time and savings deposits— tracted about 70 per cent of depositary sav­ with inflows of this type rising from $3 bil­ ings, drawing them exclusively from the lion in the mid-1950’s to recent levels in ex­ household sector. Commercial banks ac­ cess of $15 billion—are now a familiar counted for the remainder. chapter in recent U.S. financial history. I The maximum rate on the interest banks shall recapitulate only those aspects that were permitted to pay on savings deposits bear directly on capital market participa­ (2.5 per cent prior to 1957 and 3 per cent tion. thereafter) precluded active competition for Depositary savings flows have been on an the deposits of those household savers who uptrend throughout the entire postwar were rate conscious. Time deposits by cor­ period. During the decade of the 1950’s, the porate and other institutional investors in­ strongest growth element was provided by creased during periods of business recession the rapid expansion of savings shares at sav­ when short-term market outlets were unat­ ings and loan associations. These specialized tractive or unavailable, but rising yields on mortgage lenders traditionally offered market instruments quickly reversed this higher returns than other institutions could flow as economic recovery got underway. offer to savers seeking depositary-type as­ For most of the postwar period, in fact, sets, and record demands for home financ­ this cyclical character was stamped even on Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 27 the total volume of depositary-type savings. tion we have already given of investment Typically, the relative share of such funds in shifts among contractual institutions. But total savings flows turned downward during differing legal and traditional backgrounds phases of strong economic growth and high of different institutions have shaped the market rates. This indicates that a signifi­ ways in which institutions have sought wider cant, if marginal, portion of depositary flows outlets and higher yields. has always come from yield-conscious sav­ Savings and loan associations have been, ers who were in a position to consider direct and remain, predominantly mortgage lend­ market investment as an eligible alternative. ers, both by law and by tradition. In recent Reductions in the growth of depositary sav­ years they have sought and acquired in­ ings has occurred, in 1955 and 1959, and creased freedom to engage in a limited again in 1966. range of other lending (certain types of ed­ It should be noted that this cyclical pat­ ucational loans, for example), but the years tern did not develop promptly during the ex­ of their peak inflows coincided with record pansion that began early in 1961, because demands for mortgage financing, and the depositary intermediaries—and particularly trend toward more diversified and more commercial banks—were willing and able to liberal lending was exhibited mainly within compete for funds. Regulatory liberalization the housing market. There, savings and loan permitted banks to raise the returns they of­ associations have achieved greater geo­ fered on time and savings deposits, and graphic scope, freedom to offer borrowers sharp increases in bank inflows were fol­ more liberal terms and to make larger loans, lowed in turn by upward rate adjustments and—most importantly—greater opportun­ at competing institutions. While the relative ity to participate in financing construction of strength of inflows to the various intermedi­ commercial and multifamily developments. aries (depositary types) reflected leads and Loans of the latter type came to account for lags in these rate adjustments, the specialized about 25 per cent of total mortgage lending savings institutions were generally able to by savings and loan associations in the past maintain and even increase their own 4-year period. growth rates through about 1964. In 1965, Savings and loan associations are subject increasing inflows to commercial banks were to a variety of regulatory provisions, de­ partly offset by declining growth elsewhere, pending on whether they operate under and in 1966 all institutions have lost ground Federal or State charters, but the effective to the market; that is, the flow into inter­ limit on liberalization of lending policies for mediaries has declined whereas the flow of most associations in recent years has prob­ savings directly into market instruments has ably been the need to maintain their own risen sharply. borrowing privileges at regional Federal Investment patterns. Over the past dec­ home loan banks, of which all federally ade, the increase in savings inflows to de­ chartered and most State associations are positary institutions, as well as the changes members. This is an important resource to in competitive relationships among them, associations in evening out flows and also has given rise to significant changes in in­ has served, on balance, as a significant sup­ vestment policy at most institutions. Broadly plement to the industry’s lending capacity. speaking, the changes fit the general descrip­ Aggregate indebtedness to the home loan Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN • JANUARY 1967 banks has increased each year, reaching a tion in these markets was not itself a break total of $6 billion by the end of 1965. The with tradition, but the extent and duration ability to cut off or curtail access to these of that participation were. funds gives the Home Loan Bank Board a The annual increase in mortgage loan degree of regulatory control over associa­ portfolios, which had averaged less than $2 tions whose lending patterns fail to meet billion in the mid-1950’s, more than doubled prescribed standards. to $4.5 billion in the early 1960’s. And over Mutual savings banks, unlike savings and the same period, net acquisitions of State loan associations, are authorized to acquire and local government securities climbed a variety of financial instruments, but in from $0.8 billion to $4.6 billion. At the practice they too have specialized in mort­ same time, the need for higher yields to gage lending. In fact, their mortgage lend­ match the higher cost of inflows was re­ ing (net) has been in excess of their annual flected in greater acceptance of longer ma­ net savings inflows during most years of the turities and somewhat lower quality ratings. past decade. This has been possible through Holdings of U.S. Government securities de­ reductions in their holdings of other assets— clined on balance during both periods, but principally U.S. Government securities, the recent liquidation was sharper and was which made up 30 per cent of mutual sav­ accompanied by some shift toward longer ings banks’ composite portfolio in 1954 and maturities. only 11 per cent by the end of 1 965. Hold­ In cyclical periods of slack loan demand, ings of other securities have also been al­ portfolio-type investments—including capi­ lowed to decline, reflecting both the wide­ tal market instruments as well as shorterspread preference for mortgages as higher term Government securities—have tradi­ yielding instruments, the fact that invest­ tionally served as a sort of balancing and ments in securities are often circumscribed residual use of funds for commercial banks. by State quality regulations, and by prohibi­ The recent massive swing by banks to tions in certain key States against broaden­ broader participation in capital markets has ing investment areas. Thus, for mutual sav­ had more of a longer-term investment char­ ings banks the pursuit of higher yields has acter than did earlier, primarily cyclical, led to greater concentration on mortgage shifts. But it also began at a time when loan lending, with increased takings of mortgages demands, particularly those by business cor­ on both single-family and income-producing porations, were relatively moderate, and its properties. continuation at exceptionally high levels Changes in asset composition by com­ through last year, concurrent with sharply mercial banks since 1960 have been more expanded loan demands, was possible only striking than those at other depositary-type because general economic conditions at that intermediaries, in part because they reflect time did not necessitate severe restraints much greater shifts in the size and composi­ tion of inflows. Beginning in 1962 and early on credit expansion. In 1966, the pattern 1963, banks greatly increased their acquisi­ changed sharply as, with bank credit ex­ tions of capital market instruments—^especi­ pansion restrained, banks have met their ally State and local government securities business customer loan demands by cur­ and mortgages of all types. Bank participa­ tailing their intervention in capital markets. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 29 COSTS AND BENEFITS OF INTERMEDIATION stitutions unable or unwilling to adapt to changes in their economic environment. The most distinctive feature of postwar At the same time, competition for invest­ developments in financial intermediation has ment outlets has tended to hold down the been the dynamic competition among the in­ spread between the cost of funds to the in­ termediaries themselves, both for savings termediaries and the costs of long-term flows and for investment outlets. Over time, financing to ultimate borrowers. These di­ this process has increased the efficiency of rect costs of intermediation-—which are at intermediation, both by cutting its cost— least roughly measurable for savings flowing that is, narrowing the spread between the through depositary intermediaries—have cost of funds to ultimate borrowers and the been brought down to a range of about 1 to returns to nonfinancial savers—and by wid­ 1 Vi percentage points. ening the alternatives available to both sav­ Having noted this benefit accruing from ers and borrowers. The high and rising sav­ the trend to funneling savings through in­ ings by the nonfinancial sectors of the econ­ stitutions, let me point out some problems omy have stimulated competition among the that arise. For one, individual investors— various types of intermediaries for a share in and to some extent, even the smaller insti­ this flow. This has been evidenced by rising tutions—have increasingly found primary rates of return and a variety of fringe bene­ markets less hospitable to their needs while fits (such as more frequent crediting and secondary markets in most debt instruments compounding of interest). It has also pro­ are thin or nonexistent. Dealers in Govern­ duced a proliferation of savings instruments ment securities are wholesalers to whom in­ (negotiable certificates of deposit for larger dividuals have access usually only through holders or its more recent equivalent for in­ banks or brokers; institutional buyers enjoy dividual depositors called savings certifi­ first claim on new corporate and municipal cates) and benefit contracts (such as vari­ offerings, if in fact they are offered to the able annuities that permit beneficiaries to public at all; only if institutional demand participate in equity share developments as fails to absorb an entire issue is the under­ well as guaranteeing a fixed sum benefit). writer likely to engage in a retail sales effort. Third, competition has resulted in a tend­ There is even some longer-run question ency to broaden areas of investment, or at whether increased institutional trading in least to press for changes in laws that limit common stocks will not ultimately erode the investment powers of intermediaries. Many traditionally retail character of auction mar­ economists, and I number myself among kets in that instrument. Thus, the widening them, applaud this trend. Institutions with of options available to savers among insti­ overly specialized portfolios are vulnerable tutional outlets has been accompanied by to the fate of all overly specialized animals. some narrowing of their options among mar­ Recall that many prehistoric animals, such ket acquisitions. The impact of these as the dinosaur, were unable to survive changes, at least up to the present, should changes in their environment because of not be exaggerated but, as with so many their high degree of specialization. This, too, economies of scale, the price of increasing can be the fate of contemporary financial in­ efficiency in the marketing process appears Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN • JANUARY 1967 to include some diminution of initiative for ging growth in their inflows, the sharpest the individual. reductions have been among savings and Second, the recent trends in investment loan associations and mutual savings banks. policy of intermediaries raises questions Commercial banks, with stronger demand about the possible mismatching of the time­ for the types of credit they customarily ex­ profile of assets and liabilities. Consumers tend, with a quicker turn-around in the port­ acquire the liabilities of institutions because folios, and with newly achieved latitude in they regard them as liquid instruments. In competing for savings, have not been af­ the competitive drive to seek higher returns fected so much by the rise in market rates. to afford offering higher returns to savers, de­ The change in competitive relationships positary institutions have increasingly turned among intermediaries has presented serious to longer-term investments and, to some ex­ problems for the agencies of Government tent, to investments of less than premium charged with supervising and regulating quality. In conventionally defined terms, the these matters and has brought forth legisla­ liquidity of intermediaries has declined as tion temporarily restricting competition they have competed in offering liquid havens among depositary-type intermediaries. for consumer savers. This tends to pose a The trend toward institutions’ acceptance problem not during recessions, when market of investments of lower-quality standing has rates tend to fall faster than those paid by also given rise to some expressions of con­ institutions, but rather during periods of eco­ cern over the soundness of institutional as­ nomic boom, strong credit demands, and a sets generally. It must first be recognized that public policy of credit restraint. It is in such we are not concerned here with individual periods when market rates of interest rise mistakes in judgment by investment man­ rapidly, but rates offered by institutions lag. agers. Indeed, a “perfect” record might sug­ The lag is only in part the result of regula­ gest a lack of initiative and daring with un­ tions limiting rate increases by depositary fortunate consequences for a dynamic econ­ institutions. It is also a function of the fact omy. The broad considerations must deal that the portfolios of these are “locked-in” with the general pattern and level of the to the lower rates prevailing earlier. To in­ quality of investments of financial institu­ crease returns offered to savers may mean a tions. What data are available do not give rise in rates paid on a large share of institu­ ground for alarm, at least at this time. Lib­ tional liabilities, but a rise in rates charged eralization of lending terms cannot auto­ borrowers can be made effective only for the matically be identified as decline in quality. net additions to portfolios, which will gener­ Given the size and diversity of most institu­ ally be a small share of the total stock of tional portfolios and the size of savings in­ investments. flows, it is not inappropriate for institutional Since portfolio composition differs among managers to feel safe in including among the various types of depositary institutions, their assets some proportion of a somewhat the impact of boom conditions in the U.S. less than premium quality. This is not to say economy is not evenly distributed among that supervisory authorities should not be on intermediaries. In 1966, for example while guard to insure that the proportion does not all depositary institutions have shown lag­ grow so much that the institution becomes Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS 31 vulnerable to moderate fluctuations in eco­ role in making financial savings available to nomic conditions and to repayment ability long-term borrowers. The efficiency with of those to whom they have loaned funds.. which intermediaries perform this role may But it does imply that diversity of invest­ be measured by their ability to make sav­ ments and size of cash flows from loan re­ ings available—at rates reasonably related payments are worthy of consideration along to their own cost of funds—to borrowers with traditional quality measures of indi­ who cannot offer liquid instruments of guar­ vidual investments in assessing the probable anteed security in convenient forms but who solvency of an institution. are able to furnish obligations good enough And this observation brings us back full for the normal purposes of large-scale port­ circle to our starting point. It is just this folios. On balance, that ability has in­ ability of financial intermediaries to accept creased over time, and by this test of re­ and hold assets that do not possess directly source allocation, financial intermediaries all the characteristics needed by individual are playing a broader and more efficient role savers that gives intermediation its essential in U.S. capital markets. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Size and Composition of Consumer Saving This article summarizes data on the size result of disposition of funds available to and composition of consumer saving dur­ the consumer unit and does not reflect ing 1963 for the population as a whole and changes in market value of assets such as for age, income, and occupation groups.1 securities or real estate. Consumer saving, as defined for the Sur­ vey, is the net investment by consumer units SIZE OF SAVING in the assets and changes in debts shown in There is a great deal of variation in the the table on composition of saving (page amounts consumers save. More than half 44). The consumer units of the Survey are of all consumer units saved amounts rang­ the total of families and unrelated individ­ ing from $100 to $5,000; saving of $5,000 uals as defined by the Census Bureau. or more was reported by only 5 per cent. In Table 2 changes in debts secured by At the other extreme, 2 per cent dissaved— assets are incorporated in the appropriate went into debt or drew down assets—$5,000 asset change. Payment of mortgage debt, or more, and 6 per cent dissaved at least for example, is counted as saving in home $1,000 but less than $5,000 (Table 1). inasmuch as it adds to the homeowners’ Saving is positive when increases in the equity. Debts not secured by assets covered asset components plus the repayments of in the Survey are shown separately. For the debts exceed the decreases in the assets some forms of saving, such as changes in and the incurrences of new debts. For 62 of bank accounts or in debts owed, saving con­ 100 consumer units there was positive saving sists of changes in balances from the end of of $100 or more during 1963.2 Negative sav­ 1962 to the end of 1963; for others such as ing, or dissaving, is the result of drawing investment in publicly traded stock and in down assets and incurring debt in excess of real estate, saving is measured by market amounts used to increase assets and to repay transactions during the year. Saving is the debt. Twenty-one per cent of all consumer units were dissavers of at least $100 during Note.—This article was prepared by Judith K. 1963. The remaining 17 per cent had no Schoenberg, Gertrude S. Weiss, and Natalie C. Stra­ der, under the general direction of Dorothy S. Projec­ saving or dissaving or had such small tor, of the Division of Research and Statistics of amounts—that is within a range of $100— the Board of Governors of the Federal Reserve Sys­ tem. as to be negligible. 1 The data were obtained in the Survey of Changes When consumer units are grouped by in Family Finances by interviewing again in the the size of their incomes, the influence of spring of 1964 the consumer units who had co­ operated a year earlier in a nationwide survey of income on size of saving can be seen. For wealth. Results and methodology of the wealth survey example, more than one-half of the units are published in Dorothy S. Projector and Gertrude S. Weiss, Survey of Financial Characteristics of Con­ with incomes of $25,000 or more saved at sumers (Board of Governors of the Federal Reserve System, August 1966). Both surveys were conducted “Those saving or dissaving under $100 have been by the Bureau of the Census for the Board of Gov­ combined in Table 1 with those having no saving or ernors. Detailed analysis and evaluation of the sav­ dissaving. The proportions with positive and nega­ ing survey data will be presented in a later report. tive saving of $1 or more are shown in Table 2. 32 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 33 least $5,000 in contrast to the 5 per cent sales and less change in debt secured by of all units as previously noted. Similarly, homes from December 31, 1962, to Decem­ saving of $5,000 or more was reported ber 31, 1963. Both principal residences and more frequently by those in the middle vacation homes are counted in the total of age brackets when earning power is gen­ saving in home equity. For most consumer erally higher than in either the youngest or units the increase in home equity is explained the oldest age groups. by mortgage payments. For example, 34 per cent of all units had positive saving in own COMPOSITION OF SAVING home and 29 per cent positive saving in the For the population as a whole, the largest form of mortgage debt payment. Included components of saving were increases in in the equity estimate, however, are the large equity in automobiles and in own homes, changes in equities resulting from the pur­ and in liquid asset holdings. chases or sales of homes by relatively small Automobile. More than one-third (37 numbers of units. As a result, the population per cent) of total saving by all consumer as a whole incurred more mortgage debt units is owners’ equity in automobiles. Sav­ than it paid off. (See Table 4.) ing in the form of automobile equity is cal­ Liquid assets. Consumer saving in liquid culated as the purchases less trade-ins and assets is almost equal in amount to saving sales of automobiles and less change in in home equity. For no other kind of sav­ automobile instalment debt from Decem­ ing are both savers and dissavers so fre­ ber 31, 1962, to December 31, 1963. Of all quent—45 per cent of all consumer units consumer units 41 per cent were savers in saved in this form and 31 per cent dissaved. automobile equity with only 4 per cent Saving in the form of liquid assets, which being dissavers—that is, sales and/or in­ results from changes in balances in check­ creased debt were greater than value of ing and savings accounts and holdings purchases and/or debt repayment. of U.S. savings bonds, accounts for 26 The large amount of saving in automobile per cent of total consumer saving. Those who equity was in sharp contrast to the small saved as a result of increasing balances in proportion of consumer wealth in that form. savings accounts (36 percent) outnumbered Only 3 per cent of consumer wealth con­ those who dissaved (21 per cent) as a re­ sisted of automobile equity and the propor­ sult of decreasing balances in savings ac­ tion was even smaller in high-income groups. counts. Nearly three-fourths of liquid asset For saving, changes in automobile equities saving is in savings accounts. Changes in amount to more than do any of the other checking account balances made a much forms. Moreover, even among those with smaller contribution to consumer saving dur­ incomes of $25,000 or more, increased ing the year. About one-fourth (27 per cent) automobile equities were almost one-fifth of all consumer units increased the balances of total saving. in their checking accounts, and another one­ Own home. The second largest portion of fourth (26 per cent) decreased these bal­ saving, saving in the form of equity in one’s ances. Saving or dissaving in the form of U.S. own home, accounts for 27 per cent of the savings bonds was less frequent. total. Saving in home equity takes account Investment assets. For the year 1963 the of home purchases plus improvements less Survey found that consumers dissaved in the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN • JANUARY 1967 form of publicly traded stock in that net real estate, less sales, taking account also of purchases were offset by negative saving in the change in the debt. debt secured by stock. Saving in the form of Saving in the other forms of investment publicly traded stock was reported by 6 per assets—namely marketable securities other cent and dissaving by 3 per cent of all con­ than stock, mortgage assets, and company sumer units. Transactions were much more savings plans—is small and infrequently re­ frequent in the higher income and net worth ported. Even in the top income class only 1 groups where holdings of publicly traded in 10 units reported net saving or dissaving stock are concentrated. Saving in publicly in marketable securities other than stock. traded stock is the net of purchases minus Saving in company plans includes employee sales of publicly traded stock (common contributions to various types of deferred in­ stock, preferred stock, shares in mutual come plans, but not to retirement plans. To funds and other investment companies, and dissave in this form one must withdraw share in investment clubs) plus changes in money from the plan, which is seldom done credit balances at security dealers from De­ except by those leaving the company. cember 31, 1962, to December 31, 1963, Retirement plans. Employee contributions less change in debt secured by stock from to retirement plans accounted for 5 per cent end of 1962 to end of 1963 (debit balances of total saving. Saving in retirement plans, at security dealers and loans secured by which was reported by 17 per cent of all stock). units, includes employee contributions to For analysis several other forms of sav­ Federal and State as well as private pension ing were grouped with publicly traded stock plans less lump sum withdrawals. It does to compose a total of saving in investment not include social security tax deductions. assets. The largest amount of saving in Business, profession. Like ownership of investment assets was in the form of busi­ business, business saving is not widespread; nesses not managed by the unit. Such sav­ 8 per cent reported positive saving and 5 per ing is the sum of changes in the unit’s equity cent reported dissaving. Also, like business in farm and nonfarm partnerships and ownership, business saving is more frequently closely held corporations in which no mem­ reported in the upper portion of the in­ ber of the unit was active in management come scale than in the population as a whole. and of changes in loans made by the con­ Counted as businesses were professions, sumer unit to such businesses. Very few farms, and other businesses in which a mem­ saved in this way. ber of the consumer unit was active in man­ In real estate, on the other hand, savers agement. Business saving consisted of the were somewhat more numerous, undoubt­ respondent’s share of change in the book edly because of the varied kinds of property value of the business during the year, plus covered. Of all consumer units, 5 per cent investment in new businesses, less sales of were positive savers in the form of equity in businesses, and plus changes in loan's made investment real estate and another 2 per cent by the unit to such businesses. were dissavers. Such saving includes pur­ Debt. In estimating saving for each con­ chases of real estate (other than own homes sumer unit, changes in debt owed are taken and real estate connected with a business into account; a net increase in debt results in or profession) plus improvements to such dissaving and a net decrease in debt results Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 35 in saving. For debts secured by specific as­ nothing or only small amounts predomi­ sets, such as homes, automobiles, or publicly nated. The group as a whole dissaved be­ traded stock, change in debt secured by each cause of the decreases in equities in homes asset is counted as part of saving in the and businesses on the part of small propor­ form of that asset. Accordingly, a large por­ tions of the consumer units in the group. tion of the change in debt is presented in This low-income group also incurred more Tables 2 and 3 as part of the equity changes. unsecured debt than it paid off; 18 per cent These debt changes are also shown sepa­ had net increases in unsecured debt, 22 rately in Table 4. per cent had net decreases. The group added Consumer units reporting in the Survey to its liquid assets, although a smaller pro­ had dissaving in unsecured debt; that is, in­ portion, 21 per cent, had net additions to creases in amounts owed were larger than liquid assets than the 28 per cent that had amounts repaid. Net increases in unsecured net decreases in liquid assets. debt—dissaving—were reported by 25 per The saving behavior of the low-income cent and net decreases in debt—saving—by group is affected by the disproportionate 33 per cent of all consumer units. Instal­ number of the oldest consumer units; nearly ment debt other than automobile debt, half of the low-income consumer units have noninstalment debt, and debt on life insur­ heads age 65 and over. Accordingly, de­ ance were classified as unsecured debt. creased equities in homes for the group as a whole resulted from home sales, which DIFFERENCES AMONG GROUPS IN SIZE were not balanced during the year by sub­ AND COMPOSITION OF SAVING stantial downpayments for newly acquired homes or mortgage reductions—to be ex­ The way in which income, age, and occupa­ pected in a group that includes a large pro­ tion are related to the size and composition portion of older people. As was shown in of wealth has been shown in the wealth sur­ the analysis of wealth holdings, older units vey. For example, the lowest income class are likely to own homes and to own them has a much larger proportion of older units free of debt. than do the others, and older units as a group The group with incomes of $25,000 or differ from younger units in the size and more provides a contrast in saving behavior composition of their wealth. Hence a com­ to the lowest income group. At this high parison of the size and composition of wealth income level virtually everyone had saving in the lowest income group with other in­ or dissaving of $1,000 or more. The saving come groups reflects both income and age of the top income group was distributed differences. The remainder of this article over a variety of assets. The group as a describes the size and composition of saving for consumer units grouped by income, size whole ended the year with saving that av­ of net worth, age, and employment status of eraged $6,530 per consumer unit, of which the head of the unit. The analyses needed to 39 per cent was an increase in equities in isolate the effect of age and other factors on businesses in which members of the unit the saving/income relationship will be pre­ were active in management. While business sented in a subsequent report. investment accounted for a substantial share Income groups. In the lowest income of the wealth of the top income group, the group, consumer units who saved or dissaved share of current saving invested in business Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN ■ JANUARY 1967 was even larger. Of the units in this top in­ large savers or dissavers were infrequent. come group, 28 per cent were savers and 9 Building up their equities in homes and per cent were net dissavers in business dur­ automobiles was important to these young ing the year. units, and the two accounted for nearly Holdings of publicly traded stock tend to three-quarters of the total saving of this be concentrated in the upper portion of the group. No other age group had so large income distribution. In the group with in­ a proportion that increased their automobile comes of $25,000 and over, total dissaving equities during the year. Shifts in their status exceeded saving in publicly traded stock, with respect to unsecured debt also were even though positive savers were more nu­ common in the youngest group; 45 per cent merous than dissavers—38 per cent were ended the year owing less unsecured debt savers; 20 per cent, dissavers. In this income than they had at the beginning, and 35 per group dissaving is the result of increases in cent ended with more unsecured debt. debt secured by stock. (See Table 4.) Saving was largest in the 45-54 age group Homes and automobiles, which are so im­ because of the relatively large number of portant in the saving of the lower and middle units with saving between $1,000 and $5,­ income classes—accounting for as much as 000 and the relatively few dissavers. To this 70 to 80 per cent of their saving—are only age group, also, building up of home and 35 per cent of the saving of the top income automobile equities is important, but not so group. Another 23 per cent of the saving of important as in the under 35 and 55-64 age this group is in liquid assets and almost 60 groups—less than 60 per cent compared per cent of the liquid asset saving is in ac­ with almost 75 per cent. Savings accounts counts in savings and loan associations. Fur­ were added to by the 45-54 age group in ther, the proportion of top income class units larger average amounts than by other age that increased their savings accounts in sav­ groups. For this age group, contributions to ings and loan associations is greater than the retirement plans were larger than for the proportion of savers in this asset in any other others, though they account for only 6 per income class. cent of total saving. Because the size of current income and The oldest group, those with heads 65 the size of wealth or net worth are so closely and over, has a greater tendency than do the related, the classification of consumer units others to end the year without having either by their net worth gives much the same gen­ saved or dissaved appreciable amounts. eral picture as does the classification by cur­ Nearly a third of the units had little or no rent income. However, the classification by saving or dissaving during the year. Using net worth produces a larger proportion in up wealth accumulated when they were the top bracket with dissaving of $1,000 or younger is illustrated by the 9 per cent who more. Obviously, those who have little to dissaved $1,000 or more. The total saving of begin with cannot dissave as large amounts the group as a whole was small during the as can those with larger net worth. Even op­ year, largely because of net dissaving in own portunities for incurring debt are limited for homes and in investment assets. As would be those with little wealth. expected of older people, saving in the form Age groups. In the youngest group of con­ of increases in automobile equities was in­ sumer units—those with heads under 35— frequent and small compared to that of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 37 younger consumer units. Nevertheless, the saved less. They had less, on the average, of oldest group continued to build up its liquid several important kinds of saving, such as assets, chiefly savings accounts. home and automobile equities, and liquid Employment groups. The self-employed and investment assets. The employed-byand those employed by others are very dif­ others did have more saving in retirement ferent groups with respect to income and plans than the self-employed. Moreover, wealth. Many of the attributes of the upper while the self-employed were repaying un­ income and higher net worth groups are also secured debt during the year, the employedattributes of the self-employed. Among the by-others were incurring more unsecured self-employed, big savers and dissavers are debt than they paid off. comparatively numerous; 10 per cent of this The retired are the units with heads 65 group saved $10,000 or more and 18 per and over having no employment during cent dissaved $1,000 or more during the 1962. The average age for heads of con­ year. For the self-employed as a group there sumer units classified as retired is somewhat was dissaving in businesses that averaged higher than for heads of all units in the age $528 per consumer unit. However, there 65 and over group, and income is much less. were more units with increases in their busi­ Because the retired are using up the savings ness equities than with decreases in these accumulated earlier, there are relatively equities; 42 per cent were positive savers in more dissavers among the retired than business and 26 per cent were dissavers. In­ among the 65 and over group and also creasing home and auto equities accounted fewer savers of $1,000 or more. The retired for almost half of the saving of the self-em­ have dissaving in home equity and in invest­ ployed and increases in investment assets for ment assets, as a result of liquidation of such about 40 per cent. As is shown in Table 3, holdings by a small proportion of the group. businesses not managed by the unit are im­ portant investments for the self-employed. They continued to build up their liquid as­ sets, however, although they are less active The employed-by-others group, as a whole in this respect than the group of all with —being younger and having lower incomes heads 65 and over. and less net worth than the self-employed— Technical Notes Report. Experimental work in preparation for DATA COLLECTION the survey had indicated that the reinterview The Survey of Changes in Family Finances used method was feasible. An important added ad­ the reinterview method. Saving for the year 1963 vantage of reinterview is the possibility of using net was obtained by interviewing again in the spring worth at the beginning of the year as a variable of 1964 the consumer units who had cooperated in the analysis of saving/income relationships. a year earlier in the Survey of Financial Charac­ Like the wealth survey, the saving survey has a teristics of Consumers. This method had been concentration of interviews in the upper income recommended by a committee on saving statistics strata. The data are weighted to give estimates for established in the mid-1950’s by the Board of the population as a whole and for the various Governors of the Federal Reserve System at the income, age, and employment groups. The weight­ request of the Joint Committee on the Economic ing diagram took into account the income Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN • JANUARY 1967 stratum, age of head, and whether or not the ing survey, with a weighted over-all response rate respondent had moved. of 74 per cent. The response rate was higher in The saving survey was designed to cover the the second than in the first survey as had been 57.9 million consumer units in the civilian nonin- expected on the basis of tests made in developing stitutional population on December 31, 1962, and the questionnaire. This experience suggests that the consumer units to be interviewed were as con­ those who had cooperated the first time had been stituted on that date. Accordingly, units that persuaded of the value of the survey program. changed addresses were followed, individual’mem­ In spite of the loss in the sample that occurred bers that left the unit were followed, and members from the first to the second survey, the two sur­ of the unit who died during the year were credited veys give similar results as to the wealth of the with saving for the portion of the year before population. Mean total wealth is $20,982 for death, but persons added to the unit by birth of those who participated in the wealth survey and marriage during the year were not included. As $20,474 for those who participated in the saving might be expected, the proportion of nonrespond­ survey. The distribution of consumer units by size ents who moved and could not be followed was of wealth is not affected by the sample loss. Fur­ greatest in the lower income strata. ther, the percentages of consumer units having The reinterview survey yielded 2,164 respond­ equity in different kinds of assets are not different. ents who gave data sufficiently complete to tabu­ The table shows distributions of the survey late, 85 per cent of the 2,557 consumer units population by net worth, 1963 income, age, and who were respondents for the wealth survey. When employment status of the head of the consumer the number of responses in each stratum is unit for the saving survey. The distributions by net weighted in the same way as the saving survey worth and age are not different from comparable data the over-all response rate is 88 per cent. Start­ distributions of the population obtained from the ing with the original sample drawn for the wealth wealth survey. The two surveys also yield the same survey, 61 per cent participated through the sav- distribution by size of 1962 income. As in all sample surveys the data are subject to errors arising from the fact that they were Characteristics of Survey Population and Sample obtained from a sample rather than from the total population, from the refusal of some to take part Survey Sample Characteristics population (number of in the Survey, and from errors of response. While of consumer units (percentage consumer distribution) units) differences between aggregates based on survey means and aggregates from institutional sources All units.................................................... 2,164 are often used in evaluating survey data, problems Size of net worth 12/31/62: Under $1,0001.................................. 397 are encountered with both sets of data in making $ $ 1 1 , 0 0 , 0 0 0 0 - 0 $ -$ 9 2 , 4 9 , 9 9 9 99 .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 2 2 7 6 comparisons. For example, in the flow of funds $25,000 - $99,999............................. 406 accounts the household sector includes saving by $100,000 and over............................ 408 personal trusts and by nonprofit organizations, 1963 income: Negative............................................ which are excluded from the Survey aggregates. 0-$2,999.......................................... 318 $3,000 - $4,999.............................. 272 A comparison of the aggregates based on this $5,000 - $7,499..................................... 346 $7,500 - $9,999..................................... 296 Survey with those from institutional sources as $10,000 - $14,999................................. 356 $15,000 - $24,999................................. 196 presented in the Federal Reserve flow of funds $25,000 and over.................................. 365 accounts will be presented and evaluated in the Age of head: Under 35.......................................... 390 later report. Briefly stated, and on the basis of 35-44................................................. 456 45-54................................................. 503 preliminary review, the aggregate derived from 55-64................................................. 468 65 and over....................................... 347 the Survey mean is larger than the estimate from institutional sources for total saving, in spite of a Employment status of head: S E e m lf p - l e o m y p ed lo b y y ed o .. t . h .. e .. r .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,3 4 2 4 3 2 lower Survey estimate for saving in liquid assets. Retired.............................................. 193 One explanation is the lower Survey estimate of Other................................................. 206 dissaving in instalment debt. Since the estimates in this report are based on 1 Includes negative and zero net worth. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 39 a sample, they are subject to sampling variability. the same form was used for self-enumeration and The standard error is primarily a measure of for personal interviews. sampling variability—that is, of the variations that Completed questionnaires were returned to the occur by chance because a sample rather than the Census Bureau for transfer of the data to magnetic whole of the population is surveyed. Standard tape. This basic data tape was subjected to a errors for selected items tabulated in this article series of computer edits prior to preparation of the are presented in the table. The table shows, for tabulating tape. The edits included checks for completeness and technical errors in the saving Standard Errors data as well as checks for consistency within the balance sheet and saving data. Errors that had Mean for all units been introduced during the coding and processing Item of the data were corrected. The apparent inconsis­ Amount Standard tencies in the data (for example, in the saving/ (in error dollars) income relationships) were left as reported in the questionnaire. Total saving............................................................ 971 Saving in— DEFINITIONS Own home (gross of debt).................................. 455 83 Automobile (gross of debt)................................ 350 21 Business, profession (farm and nonfarm)...... 22 117 Portfolio of liquid and investment assets.......... 300 123 SAVING is the algebraic sum of the following Checking accounts.......................................... 38 18 Savings accounts.............................................. 186 44 components which are defined below: own home; U.S. savings bonds......................................... 31 21 automobile; business, profession; liquid assets; Publicly traded stock (gross of debt)............. 6 76 Marketable securities other than stock (gross investment assets; miscellaneous assets; unsecured of debt)................................................. 18 22 Debt secured by own home............................... -192 72 debt; retirement plans. The assets and debts Debt secured by stock....................................... -33 39 Personal instalment debt: covered in the saving concept are as defined for Automobile...................................................... 14 17 Other................................................................ 13 10 the wealth survey. For certain components, saving Personal noninstalment debt.............................. -33 23 has been calculated by using the December 31, 1962, and December 31, 1963, balances supplied example, that the mean amount of saving in by the respondents in the two surveys. Other checking accounts for all consumer units is $38. components are the net of transactions reported The standard error of this mean is given as $18, by the respondents in the saving survey. which means that the chances are about 68 out of Own home. Saving is the net of purchases of 100 that a complete census would have shown a principal residences and vacation homes plus figure differing from the estimate by less than $18. improvements less sales and less change in mort­ The chances are 95 out of 100 that a census gage debt from December 31, 1962, to December would have shown a figure differing from the esti­ 31, 1963. Improvements exclude housing main­ mate by less than $36 (twice the standard error). tenance or ordinary repairs as defined by the Bu­ Pretesting of the forms to be used in collecting reau of Labor Statistics. Revaluations of assets are the reinterview data showed the advisability of not counted. If a principal residence was used returning to respondents with the balance sheet partly for business purposes, only the nonbusiness data they had supplied in the first interview. These (personal) share is included here. Owner-occupied data were transcribed in the new questionnaire farm residences are not included here; they are form by the Census Bureau staff in Washington. counted as part of the farm and are included under Interview procedures in this Survey were generally business and profession. like those in the wealth survey. The interview type Automobile. Saving is purchases of automobiles designated for the saving interview (personal inter­ less trade-in allowances and sales and less change view or self-enumeration) was that which had in the instalment debts secured by automobiles been used in the wealth survey; however, the inter­ from December 31, 1962, to December 31, 1963. viewer could change the type if the respondent ex­ When an automobile was used for both business pressed a definite preference for such a change. and personal purposes, only that portion of the To provide for this flexibility and to facilitate the saving in the automobile representing its personal transcription of the data from the first interview, use as reported by the respondent was included. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN • JANUARY 1967 Business, profession (farm and nonfarm). Sav­ Marketable securities other than stock. ing consists of the respondent’s share of change in Saving is the net of purchases of bills, certificates, the book value of the business during the year, notes, bonds, and debentures issued by the U.S. plus investment in new businesses, less sales of Government, by State and local governments, by businesses, and plus change in loans made by the foreign and domestic corporations, and by foreign unit to such businesses. Farm and nonfarm sole governments less sales and less change from proprietorships, partnerships, and closely held December 31, 1962, to December 31, 1963, in corporations in which the respondent considered the debts secured by these assets. himself to be active in management are included. Mortgage assets. Saving is the net of amounts Closely held corporations are those whose shares loaned less the principal repayments received are owned entirely by one individual, a family, or on such loans during the year. a small number of individuals usually associated Investment real estate. Saving is the net by ties of business relationships or friendship. The of purchases plus improvements less sales and shares of such corporations are not considered less the change from December 31, 1962, to De­ publicly traded because there is no public market cember 31, 1963, in the debt secured by such real for the stocks, and any sales are usually direct and estate. Real estate owned by the unit, other than privately negotiated. Change in equity in business own homes and real estate connected with a by self-employed professionals is also included. business or profession is covered here. Included Liquid assets. Saving consists of the following: are houses owned for investment purposes, prop­ Checking accounts. Saving is the change in erties put to commercial use, structures used for the balances in personal checking accounts over industrial purposes, and undeveloped land held the year. Changes in checking accounts used solely for investment or building purposes. for business purposes as well as accounts that are Business investments not managed by unit. for both personal and business use are credited to Saving is measured by new money invested less business saving. proceeds from sales plus change in money owed to Savings accounts. Saving is measured by the unit by such businesses from December 31, the change in the balances in accounts over 1962, to December 31, 1963. Farm and nonfarm the period. Included are savings accounts in banks, partnerships and closely held corporations in shares in savings and loan and in building and which no member of the unit was active in loan associations, shares in credit unions, and management are included. accounts in any institution whose type was not ascertained. Savings accounts include time de­ Company savings plans. Saving is the net posits, certificates of deposit, Christmas club ac­ of contributions by members of the consumer counts, and vacation accounts. unit to deferred income plans, less lump sum with­ U.S. savings bonds. Saving is the net of pur­ drawals. chases of nonmarketable bonds issued by the Miscellaneous assets. Saving is the net of cash U.S. Government minus redemptions of these put in trust for members of the unit less cash re­ bonds. Respondents were asked to report the ceived from liquidation of such trusts, plus the net interest on these bonds as income. of the additional amounts loaned to individuals on Investment assets. Saving consists of: nonmortgage loans less the principal payments re­ Publicly traded stock. Saving is the net ceived on such outstanding loans, plus the net of of purchases of common and preferred stock purchases and sales of “other” assets (oil royal­ in corporations other than closely held corpora­ ties, patents, and commodity contracts). No effort tions, shares in mutual funds and other investment was made to measure transactions of the trust. companies, and share in investment clubs, less Unsecured debt. Saving is the excess of repay­ sales of such issues, plus change in credit balances ments over new debt incurred during 1963 on at securities dealers from December 31, 1962, to instalment debt other than automobile debt, non­ December 31, 1963, less change in debit bal­ instalment debt, and debt on life insurance. Debt ances and in loans secured by these stocks over incurred in excess of repayments constitutes dis­ this period. saving. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 41 Retirement plans. Saving in this asset is the net Instalment debt. An increase from Decem­ of individual’s contributions to retirement plans ber 31, 1962, to December 31, 1963, in amounts less lump sum withdrawals from such plans. Social owed for the purchase of automobiles and security contributions are not included. for other purposes on which regular instal­ ment payments are made is dissaving and a de­ TOTAL DEBT consists of debt secured by own crease, saving. The debt may be owed to a bank, home and by investment assets, personal debt, to some other financial institution (such as a and debt on life insurance as described below. sales finance company or a credit union), to a Included are all debts owed by members of the retailer (such as a department store), or to an unit except debts owed in the name of a business. individual. The components of debt are listed below. Automobile instalment debt. An increase in Debt secured by own home. An increase in debt secured by the automobile from December mortgage debt on principal residences and vaca­ 31, 1962, to December 31, 1963, is dissaving and tion homes from December 31, 1962, to Decem­ a decrease, saving. ber 31, 1963, is dissaving and a decrease, saving. Other instalment debt. An increase in instal­ Debt secured by investment assets. Saving con­ ment debt that is not secured by the assets in­ sists of the following items: cluded in the wealth concept of the saving survey Debt secured by stock. An increase in debit from December 31, 1962, to December 31, 1963, balances at security dealers and loans se­ is dissaving and a decrease, saving. Included here cured by stock from December 31, 1962, to De­ is debt incurred for the purchase of household cember 31, 1963, is dissaving and a decrease, durable goods, for home repair and moderniza­ saving. tion (unless the expenditure is financed by a Debit balances at security dealers. An in­ mortgage loan on own home), and for other per­ crease in the net amounts customers owe to the sonal expenses. Budget accounts, 60- or 90-day broker from December 31, 1962, to December 31, accounts, even though the payments involved are 1963, is dissaving and a decrease, saving. Con­ uneven or irregular, and revolving credit plans are sumer units are classified as having either a credit included, but 30-day charge accounts are not or a debit balance on the basis of the netting of all counted. balances for all members of the unit. Noninstalment debt. Saving is the excess of Loans secured by stock. Saving is the excess repayments over new debt incurred during 1963 of repayments over new debt incurred during 1963 on unsecured debts to doctors, hospitals, banks, on loans with stocks used as collateral, regardless other financial institutions, and private individuals of type of lender and purpose of the loan. Debt in which there is agreement to repay in one lump incurred in excess of repayments constitutes dis­ sum or at irregular intervals over the term of the saving. loan. Debt incurred in excess of repayments con­ Debt secured by marketable securities stitutes dissaving. other than stock. Saving is the excess of repay­ Debt on life insurance. An increase in debt ments over new debt incurred during 1963 on secured by life insurance from December 31, loans with marketable securities other than stock 1962, to December 31, 1963, is dissaving and a used as collateral, regardless of type of lender decrease, saving. For purposes of the saving sur­ vey, such debts are counted as unsecured because and purpose of loan. Debt incurred in excess the cash surrender value of life insurance policies of repayments constitutes dissaving. is not included in the wealth estimate. Debt secured by investment real estate. An increase in the debt that was secured by NET WORTH and WEALTH are measured as mortgages on investment real estate holdings of December 31, 1962, and are as defined for from December 31, 1962, to December 31, 1963, the wealth survey. is dissaving and a decrease, saving. Personal debt. Saving consists of saving in the INCOME is the total money income received in form of instalment and unsecured noninstalment 1963 by all members of the consumer unit before debts. any payroll or income tax deductions. The follow- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN • JANUARY 1967 ing components are included: wages, salaries, ifications of Census Bureau occupation and classcommissions; net income from unincorporated of-worker classifications. The self-employed group businesses or professions (farm and nonfarm) — consists of units whose heads were active in the both sole proprietorships and partnerships; div­ management of a nonfarm family business, in­ idends; interest; net income from rents; pensions cluding closely held corporations and partnerships and social security payments; and any other peri­ as well as sole proprietorships, and units whose odic payments received by members of the unit. heads were professional persons reporting them­ The few units who reported negative incomes selves as self-employed. Whether they had an during 1963 are included in the data for all units, investment of any value in their business was not but are not shown separately in the tables. a consideration in this classification. The employed-by-others group consists of units CONSUMER UNITS consist of families and un­ in which the main occupation of the head was as related individuals as defined by the Bureau of the an employee of someone else; farm laborers are Census. The Census definition of the term not included. This group includes units with mem­ "family” is a group of two or more persons related bers other than the head active in the management by blood, marriage, or adoption and residing to­ of family businesses and units in which active gether. The term “unrelated individuals,” as de­ management of a business was a secondary occu­ fined by the Census Bureau, refers to persons pation of the head. (other than inmates of institutions) who are not The retired group consists of units whose head living with any relatives. An “unrelated individ­ was 65 years or older in 1962 and who did not ual” may constitute a 1-person household by work during that year. himself, or he may be part of a household includ­ Farm operators, farm laborers, units with head ing one or more other families or unrelated in­ under 65 reporting no work experience during dividuals, or he may reside in group quarters such 1962, and units who did not report occupation are as a rooming house. included in the data for all units, but are not shown as separate groups in the tables of data EMPLOYMENT STATUS groupings are mod­ classified by employment status. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 43 Table 1 Size of Saving, 1963 (Percentage distribution of consumer units) Saving of— Dissaving of—• Saving or Characteristics All dissaving of consumer units units $25,000 $10,000­ $5,000­ $1,000­ $100­ u $ n 1 d 0 e 0 r $100­ $1,000­ $5,000 and over 24,999 9,999 4,999 999 999 4,999 and over All units.......................................... 100 * 2 3 30 27 17 13 6 2 Size of net worth 12/31/62: Under $1,000 i...’................. 100 1 15 31 34 17 2 * $1,000-59,999......................... 100 * 1 2 34 31 17 12 4 $10,000 - $24,99 9..................... 100 3 3 37 27 6 12 8 3 $25,000-$99,999...................... 100 1 4 8 38 17 4 9 12 5 $100,000 and over...................... 100 10 15 15 23 4 5 2 10 16 1963 income: 0-52,999................................ 100 5 23 41 23 6 1 $3,000 - $4,999......................... 100 2 1 19 39 17 15 7 1 $5,000-57,499......................... 100 1 1 35 37 9 11 5 1 $7,500- 59,999......................... 100 3 2 54 24 4 6 5 2 $10,000-514,999...................... 100 3 9 54 17 5 6 5 2 $15,000 - $24,999...................... 100 3 8 24 39 9 4 3 5 5 $25,000 and over........................ 100 18 17 21 20 4 * ♦ 6 14 Age of head: Under 35................................. 100 1 3 33 32 14 12 4 35—44............................................ 100 1 2 3 35 30 11 11 5 3 45-54............................................ 100 3 3 40 23 17 8 4 2 55-64........................................... 100 1 1 5 25 26 15 17 8 3 65 and over................................ 100 * 2 2 13 25 31 17 7 2 Employment status of head: Self-employed......................... 100 4 6 10 29 21 4 9 12 6 Employed by others................... 100 1 3 36 30 13 11 4 1 Retired......................................... 100 • 2 1 9 23 37 20 7 2 * Less than one-half of 1 per cent. 1 Includes negative and zero net worth. Note.—Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN • JANUARY 1967 Table 2 Composition of Saving, 1963 ^t»^^®fe^®^^ Portfolio of liquid and of C c h o a n r s a u c m ter e i r s t u ic n s it s s T av o i t n a g l (e h O q o u w m i n t e y ) ( m e A q o u u b t i o i t l y ­ e ) p ( n B f r o a o u n r f s m e f in a s e s r a m i s n o s d ) n , i A n l v l estmen L a t s i a q s s e u s t i e s d t s (eq I a u n m s i v t s e y e e n ) s ts t t ­ R p m e la t e i n n r s e t ­ l M a a n s i s e s e c o t e u s l s ­ s d ec U e u b n r t e ­ 1 d a. Percentage having positive saving inspecified forms Al! units........................................... 68 34 41 8 45 45 13 17 2 33 Size of net worth 12/31 /62: Under $1,000 2......................... 58 11 40 2 28 27 3 11 1 40 $1,000 - $9,999.......................... 73 43 43 7 45 45 11 16 1 38 $10,000 - $24,999...................... 73 52 40 11 53 53 15 23 3 31 $25,000 - $99,999...................... 70 34 38 17 62 59 29 19 2 16 $100,000 and over...................... 67 30 33 19 59 64 37 14 7 13 1963 income: 0 - $2,999................................... 40 9 I I 3 2! 21 3 2 22 $3,000 - $4,999.......................... 70 22 37 10 44 43 8 7 2 31 $5,000 - $7,499.......................... 77 37 52 5 51 51 12 18 1 41 $7,500 ~ $9,999.......................... 85 55 56 8 57 56 18 35 1 40 $16,000 - $14,999...................... 85 58 57 13 61 63 25 35 3 38 $15,000 - $24,999...................... 85 64 70 23 65 66 31 30 2 32 $25,000 and over........................ 79 56 43 28 66 67 44 18 5 30 Age of head: Under 35..................................... 76 35 58 6 46 45 11 15 2 45 35-44............................................ 77 44 51 13 47 46 15 21 2 42 45-54............................................ 76 45 47 9 47 49 15 24 2 36 55-64 .......................................... 62 30 31 6 45 45 16 19 2 23 65 and over.................................. 48 13 10 5 38 37 9 4 1 15 Employment status of head: Self-employed.............................. 71 48 43 42 52 54 25 8 3 33 Employed by others.................... 77 41 51 4 49 48 14 23 1 39 Retired........................................ 40 11 6 1 32 30 7 2 13 b. Percentage having dissaving in specified forms All units........................................... 24 3 4 5 31 31 7 * 2 25 Size of net worth 12/31 /62: Under $1,000 2.......................... 25 2 7 1 22 22 1 * 32 $1,000 - $9,999.......................... 21 4 5 3 34 32 5 1 2 27 $16,000 - $24,999...................... 25 4 2 6 38 36 9 ♦ 3 23 $25,000 - $99,999...................... 28 4 1 11 33 34 16 6 10 $100,000 and over...................... 32 5 1 5 40 32 31 ♦ 5 8 1963 income: 0 - $2,999................................... 37 2 3 4 28 28 3 2 18 $3,000 - $4,999.......................... 26 2 3 6 29 30 4 1 2 28 $5,000 - $7,499.......................... 21 3 6 3 32 3! 6 1 2 29 $7,500 - $9,999......................... 14 5 5 3 32 32 8 3 29 $16,000 - $14,999...................... 14 6 4 4 35 32 16 3 19 $15,000 - $24,999...................... 15 4 5 7 35 33 15 2 2 29 $25,000 and over........................ 20 8 1 9 34 31 25 * 6 12 Age of head: Under 35..................................... 20 3 8 3 30 31 4 1 1 35 35-44 ............................................ 20 4 6 3 34 33 7 I 2 32 45-54 ........................................... 18 4 3 5 29 27 11 * 2 22 55-64 ........................................... 31 3 3 9 30 29 8 4 19 65 and over.................................. 34 2 * 3 33 33 6 * 3 11 Employment status of head : Self-employed.............................. 28 5 3 26 37 34 15 1 3 19 Employed by others................... 20 3 6 1 32 31 7 * 2 28 Retired......................................... 38 2 * 1 30 32 4 * 3 14 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 45 Table 2 (Continued) Composition of Saving, 1963 (Continued) B Portfolio of liquid and of C c h o a n r s a u c m te e ri r s t u ic n s it s s T av o i t n a g l (e h O q o u w m i n t e y ) ( m e A q o u u b t i i o t l y ­ e ) p ( n B f r o a u o n r s f m f e i a n s r e s a m i s n o s d ) n , i A n U vestmen L a t i s a q s s u e s t i s e d t s (eq I u n m i v t e y e n ) s t t ­ R p m e la t e i n n r s e t ­ l M a a n s i s e s e c o t e u s l s ­ s d ec U e u b n re t ­ 1 d assets c. Mean amount (in dollars) of saving in specified forms All units........................................... 971 263 364 22 300 254 46 52 -6 -23 Size of net worth 12/31/62: Under $1,000 2....................... 434 86 253 20 32 25 7 29 1 12 $1,000-59,999......................... 875 329 307 93 115 70 45 44 -2 -10 $16,000-$24,999...................... 1,237 495 378 146 214 258 -43 74 -1 -67 $25,000 - $99,999...................... 1,674 83 572 -401 1,528 805 723 77 -118 -64 $100,000 and over...................... 1,665 425 964 598 -972 1,869 -2,841 78 508 64 1963 income: 0 - $2,999................................ -167 -80 43 -86 29 37 -6 -14 -58 $3,000-54,999.......................... 688 119 248 143 307 78 229 3 -60 -71 $5,000-$7,499.......................... 877 256 351 2 195 175 20 37 2 35 $7,500 - $9,999................ 1,112 464 451 200 -55 430 -484 101 -20 -26 $16,000 - $14,999...................... 2,303 440 678 252 715 498 217 140 77 $15,000 - $24,999...................... 3,565 1,421 1,126 -1,687 2,527 1,166 1,362 166 170 -157 $25,000 and over...................... 6,530 1,039 1,245 2,537 1,137 1,516 -378 182 261 129 Age of head: Under 35.................................. 1,132 437 398 113 152 -6 159 32 4 -5 35-44............................................ 1,164 234 471 -46 574 294 281 62 -8 -122 45-54............................................ 1,537 400 473 92 450 552 -101 88 6 28 55-64............................................ 871 262 363 -122 330 241 89 68 -31 1 65 and over................................. 47 -59 88 53 -22 203 -225 10 -6 -15 Employment status of head: Self-employed.......................... 2,404 531 588 -528 1,607 659 947 20 103 83 Employed by others................... 1,087 344 420 70 201 231 -29 75 -24 Retired......................................... 9 -150 51 -2 118 183 -64 6 -29 18 * Less than one-half of 1 per cent or less than one-half of $1. 1 Unsecured debt is personal debt other than automobile debt combined with debt on life insurance. 2 Includes negative and zero net worth. Note.—Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN • JANUARY 1967 Table 3 Composition of Saving in the Form of Liquid and Investment Assets, 1963 Liquid assets Investment assets (equity) of C c h o a n r s a u c m te e r r i s u ti n c i s t s C i c n o h g u e n a c t c k s ­ ­ All S i aving b s a I n n a k c s coun in I t n s g lo s s a a a n v n ­ d s b a U o v n i .S n d g . s s P t s u r t a b o d l c i e c k d ly o s M t s t h t o e h a k c c e n t , k . r M a g s a s o g e r e t t s ­ e R st e a a t l e n a o g B t n u e u e n d m s s i s t i a b ­ n y ­ s C a p p v l a o a i n m n n y g s ­ s assns. a. Percentage having positive saving All units............................................. 27 36 27 13 11 6 1 1 5 1 2 Size of net worth 12/31/62: Under $1,0002........................... 18 19 14 2 5 1 1 2 $1,000 - $9,999.............................. 28 34 26 9 10 4 1 3 3 $10,000 - $24,999........................... 31 46 32 19 15 8 1 5 I 3 $25’000 - $99'999.......................... 36 53 43 28 16 16 1 2 12 2 1 $100,000 and over......................... 41 54 41 34 16 29 5 2 20 8 5 1963 income: 0 $2,999................................... 11 18 14 6 2 1 1 1 $3,000 - $4,999.............................. 26 28 24 8 5 4 * 4 1 $5^000 - $7,499.............................. 27 41 32 9 14 3 1 5 1 3 $7’500 - $9'999.............................. 34 46 30 20 16 9 1 1 6 1 4 $10,000 - $14,999.......................... 45 53 42 21 24 14 1 2 7 I 4 $15^000 - $24^999.......................... 47 58 41 32 17 20 2 1 8 4 5 $25,000 and over............................ 42 63 36 43 16 38 7 2 15 5 5 Age of head; Under 35..................................... 30 32 24 7 10 5 I 2 1 3 35-44............................................... 29 38 28 14 12 6 1 4 1 4 45-54.............................................. 29 41 31 16 15 9 1 I 5 2 55-64............................................... 27 37 27 15 12 7 1 1 8 I 2 65 and over..................................... 21 30 25 12 4 4 ( 5 * ♦ Employment status of head: Self-employed............................. 38 42 29 21 7 14 2 3 13 2 Employed by others...................... 29 39 29 13 14 7 5 1 3 Retired................................... 17 25 21 9 4 4 1 2 2 * 1 b. Percentage having dissaving All units.............................................. 26 21 15 6 5 3 1 3 2 ♦ • Siz U e n o d f e n r e $ t 1 w ,0 o 0 r 0 th 2 .. 1 .. 2 .. / . 3 .. 1 .. / . 6 .. 2 .. : . .......... 18 u 9 1 2 1 • $1,000 - $9,999............................... 24 23 17 5 6 2 I 2 1 $10,000 - $24,999........................... 29 27 20 8 7 3 3 3 I 1 $25’000 - $99,999.......................... 37 23 17 10 5 7 1 7 5 1 $100,000 and over......................... 44 20 15 11 2 22 9 13 8 4 ♦ 1963 income: 0 - $2,999................................... 19 15 10 3 4 1 2 • $3,000- $4,999............................... 27 18 12 5 3 1 2 1 1 $5'000 - $7,499............................... 28 22 16 7 5 2 1 2 2 1 $7’500 - $9'999............................... 28 24 22 6 5 2 1 3 3 1 $10,000 - $14,999........................... 27 26 17 10 9 9 2 5 2 ♦ 1 $15^000 - $24’999........................... 33 32 30 8 5 7 4 6 2 38 20 21 10 4 20 3 6 10 5 ♦ Age of head: Under 35.................................... 27 21 15 4 6 2 1 1 35-44............................................... 26 22 17 6 4 2 I 3 2 1 45-54............................................... 24 20 16 7 5 5 1 3 3 • 55-64............................................... 27 20 15 7 4 4 1 4 2 1 65 and over.................................... 25 20 15 5 5 3 1 3 2 1 ♦ 4 Employment status of head: Self-employed............................. 30 17 13 8 2 6 1 4 6 1 Employed by others...................... 27 23 17 6 6 3 1 3 2 Retired........................................... 23 18 14 4 4 2 * 3 2 I * Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 47 Table 3 (Continued) Composition of Saving in the Form of Liquid and Investment Assets, 1963 (Continued) Liquid assets Investment assets (equity) Savings accounts Mkt. Busi­ o C f c h o a n ra s c u t m er e i r s t u ic n s i ts C i c n o h g u e n a c c t k s ­ ­ Alli ba I n n k s i I n n g lo s s a a a n v n ­ d s b a U o v n i .S n d g . s s P t u s r t a b o d l c i e c k d ly o s t s t h t o e h a c c e n . k r M a g s a s o g e r e t t s ­ e R st e a a t l e n a o g n t u e e n d m s i s t a b n y ­ s C a p p v l a o a i n n m n y g s ­ s assns. c. Mean amount (in dollars) of saving All units............................................. 38 186 114 61 31 -27 14 -10 15 48 8 Size of net worth 12/31/62: Under $1,0002............................... 5 14 4 5 5 -4 ♦ 5 3 4 $1,000 -$9,999...................... 2 55 43 8 13 9 1 23 2 10 $10,000 - $24,999.......................... 76 118 53 50 63 13 2 -10 -47 -8 9 $25,000 - $99,999.......................... 40 770 509 236 -4 238 1 -23 165 337 6 $100,000 and over..................... 510 885 434 413 474 -2,805 570 -250 -306 -78 32 1963 income: 0 - $2,999....................................... -35 79 41 47 -6 2 2 3 -12 $3,000 - $4,999.............................. 61 61 95 -42 -43 84 34 141 -31 2 $5,000 - $7,499.............................. 23 94 102 -21 58 16 25 -16 -9 4 3 $7,500 - $9,999.............................. 41 292 99 134 97 -333 -16 -18 -135 2 18 $10,000- $14,999.......................... 80 362 275 82 55 59 -47 7 100 86 14 $15,000 - $24,999.......................... 187 885 517 400 94 106 -37 -71 41 1,286 39 $25,000 and over........................... 437 898 6 867 180 -683 1,289 -215 -229 -591 54 Age of head: Under 35......................................... 8 -21 6 -35 8 64 1 7 43 28 16 35-44.............................................. 23 247 193 60 24 5 -12 -34 73 241 9 45-54.............................................. 77 390 135 223 85 -7 -10 -15 -54 -14 3 55-64.............................................. 48 166 135 10 28 41 89 -22 -11 -17 12 65 and over.................................... 37 158 112 46 8 -259 17 12 19 -11 -i Employment status of head: Self-employed................................. 156 471 268 193 32 205 230 -31 -17 562 Employed by others...................... 26 164 85 63 41 -58 -7 -22 40 9 11 Retired............................................ • 103 83 27 80 -80 ♦ 72 -39 -15 1 * Less than one-half of 1 per cent or less than one-half of $1. 1 Includes accounts in credit unions and in any institution whose type was not ascertained, not shown separately. 2 Includes negative and zero net worth. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN • JANUARY 1967 Table 4 Composition of Saving in the Form of Change in Debt, 1963 1 Debt secured by— Personal debt Investment assets Instalment debt Debt on of C co h n ar s a u c m te e ri r s u ti n c i s t s T d o e t b a t l h O o w m n e All Stock o M s t e h k c e t . . r e R st e a a t l e AU All m A o u b to il ­ e Other i N m n d s e o e t b n n a t l t ­ ­ i a n l n i s f c u e e r ­ than stock a. Percentage having positive saving All units............................ 45 29 4 * 3 37 33 21 27 20 I Size of net worth 12/31/62: Under $1,0002............ 44 8 * * * 44 39 23 36 27 $1,000 - $9,999.......... 48 39 2 2 42 39 26 33 22 2 $10,000 - $24,999. . . . 46 42 5 I 5 34 30 18 23 16 2 $25,000 - $99,999.. . . 38 28 12 3 9 22 18 15 8 9 2 $100,000 and over.... 34 27 12 6 ♦ 7 14 8 7 2 10 2 1963 income: 0 - $2,999....................... 27 6 1 1 1 23 19 5 16 11 • $3,000 - $4,999............. 44 19 2 1 2 35 34 18 30 14 $5,000 - $7,499............. 47 30 4 * 4 43 39 27 37 28 1 $7,500 - $9,999............. 59 48 5 5 48 45 36 33 26 3 $10,000 - $14,999.......... 59 51 10 2 * 7 47 41 32 27 24 3 $15,000 - $24,999.......... 45 52 4 1 4 31 29 24 20 20 4 $25,000 and over........... 48 48 15 7 * 10 28 16 12 6 23 5 Age of head: Under 35....................... 50 28 2 2 48 46 33 42 28 1 35-44.............................. 56 40 5 1 * 4 49 44 28 36 24 2 45-54.............................. 54 40 5 I * 5 41 35 25 25 26 3 55-64.............................. 37 24 6 1 5 27 24 12 17 13 2 65 and over.................... 23 9 3 2 * 2 16 13 4 10 6 1 Employment status of head: Self-employed............ 50 41 11 2 10 35 32 21 21 18 6 Employed by others. . 51 35 4 * 3 44 40 28 33 25 1 Retired....................... 21 7 3 2 * 1 14 12 3 9 5 * b. Percentage having dissaving All units............................. 27 5 2 1 * 1 27 22 13 17 17 2 Size of net worth 12/31/62: Under $1,0002............ 32 5 * ♦ 32 26 15 21 23 2 $1,000 - $9,999.......... 27 7 1 ♦ I 30 25 15 20 17 2 $10,000 - $24,999.. . . 26 5 2 1 1 27 20 13 15 14 2 $25,000 - $99,999.. . . 22 5 6 2 I 3 17 13 9 5 8 1 $ 100,000 and over,... 15 5 7 4 * 5 7 2 2 3 6 1 1963 income: 0 - $2,999....................... 18 1 * 19 9 3 8 13 $3,000 - $4,999.............. 26 3 1 1 29 23 11 20 19 1 $5,000-57,499............. 37 6 1 1 36 34 23 22 21 4 $7,500 - $9,999............. 27 8 2 1 2 30 26 16 23 16 4 $10,000 - $14,999.......... 29 11 5 2 I 23 20 14 15 13 2 $15,000 - $24,999.......... 39 15 5 I * 4 42 38 31 20 17 2 $25,000 and over............ 26 11 11 7 * 5 14 5 5 7 9 5 Age of head; Under 35........................ 40 1 1 2 1 1 38 34 23 26 27 2 35-44.............................. 33 6 3 1 1 1 34 28 17 22 21 3 45-54............................... 24 5 2 2 27 22 14 16 13 3 55-64............................... 24 3 1 * * 1 23 16 9 13 10 1 65 and over.................... 13 1 1 * * 1 13 6 2 4 10 * Employment status of head: Self-employed............ 28 8 4 1 3 25 19 10 13 12 3 Employed by others. . 31 7 2 1 * 1 31 27 17 21 18 2 Retired....................... 15 * 1 * * 1 14 4 I 4 12 * Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SIZE AND COMPOSITION OF CONSUMER SAVING 49 Table 4 (Continued) Composition of Saving in the Form of Change in Debt, 1963 i (Continued) Debt secured by—• Personal debt Investment assets Instalment debt Debt on Characteristics Total Non­ life of consumer units debt h O o w m n e All Stock o M s t e h k c e . t . r e R st e a a t l e All All m A o u b to il ­ e Other i m n d s e e t b a n t l t ­ i a n n su ce r­ than stock c. Meanamount (in dollars)of saving All units............................. -241 -192 -42 -33 -4 -5 -4 28 14 13 -33 -3 Size of net worth 12/31/62: Under $1,0002........ -275 -317 * 50 61 28 32 -11 -10 $1,000 - $9,999.......... -278 -253 -27 5 * -33 40 10 28 -39 $10,000-$24,999.. .. -126 -39 -11 10 -69 -36 -21 -16 -33 -18 $25,000 - $99,999 .. . . 3 10 23 15 -34 41 -44 21 31 -10 -66 11 $100,000 and over.... -1,923 -602 -1,515 -1,420 62 -158 126 125 128 -3 1 65 1963 income: 0 - $2,999................... -23 17 16 12 « 3 -58 13 13 -72 $3,000 -$4,999.............. 147 47 142 47 * 94 -43 31 27 3 -75 $5,000 -$7,499............. 1 -32 57 * * 57 -18 -28 -60 31 10 -7 $7,500 -$9,999............. -405 -339 -114 -9 * -106 67 72 74 -2 -5 -20 $10,000 - $14,999.......... -362 -481 -48 -78 -41 70 157 115 88 26 41 8 $15,000 - $24,999.......... -2,342 -1,169 -831 -22 10 -820 -373 -220 -185 -35 -153 29 $25,000 and over............ -3,876 -2,538 -1,649 -2,161 101 409 404 206 181 24 197 -94 Age of head: Under 35.................... -960 -826 -123 -55 -68 9 29 -6 35 -20 -21 35-44.............................. -267 -286 100 11 -27 114 -80 42 39 2 -123 -2 45-54.............................. 260 197 -16 26 2 -46 80 78 50 28 1 -I 55-64.............................. 28 25 16 9 3 2 -19 -41 -16 -26 21 5 65 and over.................... -176 22 -188 -163 3 -28 -16 23 3 20 -40 3 Employment status of head: Self-employed............ -743 -796 -75 -4 23 -95 133 27 44 -17 105 -5 Employed by others.. -225 -220 -5 -9 13 33 17 15 -34 -6 Retired....................... -212 38 -277 -218 * -59 23 32 7 24 -9 2 * Less than one-half of 1 per cent or less than one-half of $1. . 1 Debt incurred in excess of repayments constitutes dissaving and is shown as a negative figure. 2 Includes negative and zero net worth. Note.—Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN • JANUARY 1967 Table 5 Sources and Uses of Funds and Choices Among Forms of Saving, 1963 (Percentage distribution of consumer units) Increases in— Decreases in— Additions Withdrawals U.S. Publicly U.S. Publicly Savings savings traded Savings savings traded accounts bonds stock accounts bonds stock All units in group........................................ 100 100 100 All units in group..................................... 100 100 100 Sources of funds: Uses of funds: Income,................................................ 84 87 71 Meet living expenses......................... 65 57 44 Gifts and inheritances.............................. 6 6 3 Pay debts............................................... 7 5 7 Bank accounts....................................... 1 2 4 Increase bank accounts........................ 1 6 18 Borrowing................................................ * * 2 Invest in— Investments: Own home......................................... 8 4 6 U.S. savings bonds.............................. 1 1 1 Automobile........................................ 6 10 4 Publicly traded stock......................... 1 * 2 Business............................................. I 1 Marketable securities other than U.S. savings bonds...................... 1 1 stock......................................... * 1 * Publicly traded stock........................ 1 2 2 Life insurance, annuities, retirement Marketable securities other than funds.............................................. 1 1 stock.................................. 2 1 Other investments................................ 2 1 6 Other investments............................. 4 6 10 Other sources............................... 1 3 Other uses............................................ 3 5 1 Not ascertained........................................ 1 2 6 Not ascertained..................................... 3 1 8 Reasons for investing in specified assets: Reasons for withdrawing funds from Safety of capital....................................... 12 25 5 specified assets: Liquidity or marketability....................... 25 3 1 No longer a good rate of return... . 2 5 6 Maximum current return............. 4 3 9 Asset matured or was called for Safe, steady return................................ 3 3 1 redemption.................................... « 12 1 Safety of capital and— Profit taking..................................... 3 Maximum current return............ 2 2 1 Change in valuation or too risky.... 1 1 14 Safe, steady return............................... 2 1 * Sold this asset in order to keep other Liquidity or marketability and—■ assets................................. 2 6 3 Maximum current return................ 2 Convenience, only asset held, avoid Safe, steady return........................... 5 3 going into debt.......................... 72 58 27 Growth of capital................................... 1 23 Other.................................................. 3 14 Minimizing income taxes........................ * 2 Not ascertained................................. 20 18 31 Diversification.......................................... 1 Regular saving program......................... 4 39 12 Convenience............................................. 18 5 6 Other........................................................ 2 4 8 Not ascertained........................................ 19 10 32 Units reporting increased holdings of Units reporting decreased holdings of specified assets: specified assets: Per cent of all units1................... 32 10 8 Per cent of all units1......................... 19 5 3 Number in sample............................... 855 250 365 Number in sample............................. 443 127 146 * Less than one-half of 1 per cent. 1 Percentage based on respondents’ answers to questions. The percentages in Table 3 were computed from data on transactions and on changes in balances and debts. Note.—Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material RESERVES OF MEMBER BANKS; for profit; 4 or in which the entire beneficial interest is held by one or more individuals or by such a cor­ PAYMENT OF INTEREST ON DEPOSITS poration, association, or other organization; and (2) with respect to which the depositor is not The Board of Governors, effective January 1, required by the deposit contract but may at any 1967, amended the definitions of “time deposits, time be required by the bank to give notice in open accounts” and “savings deposits” contained writing of an intended withdrawal not less than 30 days before such withdrawal is made 5 and which is in Regulations D and Q to facilitate interpretation not payable on a specified date or at the expiration and administration of the Regulation. The Board of a specified time after the date of deposit. also made certain editorial changes. In addition, b. In section 204.l(i), the reference to “paragraph the Board amended the Supplement to Regulation (f)" is amended to read “paragraph (g)”. c. In section 204.2(6), the reference to “section D to fix the required reserve percentages that must 204.1(g)” is amended to read “section 204.1(h)”. be maintained by member banks against Christmas d. In section 204.2(d), the clause “as permitted and vacation club accounts at 4 per cent, the rate to national banks under authority of section 11 (k) prescribed for savings deposits. The texts of these of the Federal Reserve Act (40 Stat. 969; 12 U.S.C. 248 (k)),” is eliminated, so that the second sentence amendments read as follows: of that paragraph reads “If, however, such funds are mingled with the general assets of the bank, a deposit liability thereby arises against which reserves must AMENDMENTS TO REGULATION D be maintained.” (12 CFR Part 204) 2. Effective January 5, 1967, the Supplement to Regulation D is amended to read as follows: 1. Effective January 1, 1967, Regulation D is amended in the following respects: SUPPLEMENT TO REGULATION D a. Sections 204.1 (d) and (e) are amended to read Section 204.5—Supplement as follows: Effective as to all member banks at the opening of business on January 5, 1967. Section 204.1 —Definitions (a) Reserve percentages.—Pursuant to the provi­ $ $ * sions of section 19 of the Federal Reserve Act and (d) Time deposits, open account.-The term “time § 204.2(a) and subject to paragraph (b) oi this deposit, open account” means a deposit, other than a section, the Board of Governors of the Federal Re­ “time certificate of deposit”, with respect to which serve System hereby prescribes the following reserve there is in force a written contract with the depositor balances which each member bank of the Federal that neither the whole nor any part of such deposit Reserve System is required to maintain on deposit may be withdrawn, by check or otherwise, prior to with the Federal Reserve bank of its district: the date of maturity, which shall be not less than (1) If not in a reserve city— 30 days after the date of the deposit,2 or prior to the expiration of the period of notice which must be (i) 4 per cent of (A) its savings deposits and (B) given by the depositor in writing not less than 30 its time deposits, open account, that constitute de­ days in advance of withdrawal.3 posits of individuals, such as Christmas club accounts and vacation club accounts, that are made under (e) Savings deposits.—The term “savings deposit” written contracts providing that no withdrawal shall means a deposit— be made until a certain number of periodic deposits (1) which consists of funds deposited to the credit have been made during a period of not less than 3 of one or more individuals, or of a corporation, as­ months, plus sociation, or other organization operated primarily (ii) 4 per cent of its other time deposits up to $5 for religious, philanthropic, charitable, educational, million and 6 per cent of such deposits in excess of fraternal, or other similar purposes and not operated $5 million, plus 3 Deposits, such as Christmas club accounts and vacation 4 Deposits in joint accounts of two or more individuals may club accounts, which are made under written contracts pro­ be classified as savings deposits if they meet the other require­ viding that no withdrawal shall be made until a certain number ments of the above definition, but deposits of a partnership of periodic deposits have been made during a period of not less operated for profit may not be so classified. Deposits to the than 3 months constitute “time deposits, open account” even credit of an individual of funds in which any beneficial interest though some of the deposits are made within 30 days from the is held by a corporation, partnership, association, or other end of the period. organization operated for profit or not operated primarily for 3 A deposit with respect to which the bank merely reserves religious, philanthropic, charitable, educational, fraternal, or the right to require notice of not less than 30 days before any other similar purposes may not be classified as savings deposits. withdrawal is made is not a “time deposit, open account”, 5 The exercise by the bank of its right to require such notice within the meaning of the above definition. shall not cause the deposit to cease to be a savings deposit. 51 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN • JANUARY 1967 (iii) 12 per cent of its net demand deposits. by one or more individuals or by such a corporation, (2) If in a reserve city (except as to any bank association, or other organization; and located in such a city which is permitted by the (2 ) with respect to which the depositor is not re­ Board of Governors of the Federal Reserve System, quired by the deposit contract but may at any time be pursuant to § 204.2(0X2), to maintain the reserves required by the bank to give notice in writing of an specified in subparagraph (1) of this paragraph)— intended withdrawal not less than 30 days before such withdrawal is made “ and which is not payable on a (i) 4 per cent of (A) its savings deposits and (B) its specified date or at the expiration of a specified time time deposits, open account, that constitute deposits after the date of deposit. of individuals, such as Christmas club accounts and vacation club accounts, that are made under written 2. Section 217.2 is amended to read as follows: contracts providing that no withdrawal shall be made until a certain number of periodic deposits have been Section 217.2—Demand Deposits made during a period of not less than 3 months, plus (ii) 4 per cent of its other time deposits up to $5 (a) Interest prohibited.—Except as provided by million and 6 per cent of such deposits in excess of $5 section 19 of the Federal Reserve Act, no member million, plus bank of the Federal Reserve System shall, directly (iii) 1616 per cent of its net demand deposits. or indirectly, by any device whatsoever, pay any interest on any demand deposit. (bl Currency and coin.—The amount of a mem­ ber bank’s currency and coin shall be counted as (6) Meaning of interest.—Within this part, any reserves in determining compliance with the reserve payment to or for the account of any depositor as requirements of paragraph (a) of this section. compensation for the use of funds constituting a de­ posit shall be considered interest. AMENDMENTS TO REGULATION Q 3. Footnote 8 under section 217.3(e) is redesig­ (12 CFR Part 217) nated footnote 6. Effective January 1, 1967, Regulation Q is 4. Section 217.5 is amended to read as follows: amended in the following respects: Section 217.5—Withdrawal of Savings Deposits 1. Sections 217.1 (d) and (e) are amended to (a) Requirements regarding notice of withdrawal.— read as follows: Whether or not interest is paid, no member bank shall require or waive notice of withdrawal as to Section 217.1—Definitions any amount or percentage of the savings deposit of $ * * any depositor unless it shall similarly require or (d) Time deposits, open account.—The term “time waive such notice as to the same amount or percent­ deposit, open account” means a deposit, other than a age of the savings deposits of every other depositor “time certificate of deposit”, with respect to which which are subject to the same contractual provisions there is in force a written contract with the depositor with respect to notice of withdrawal. If a member that neither the whole nor any part of such deposit bank, without requiring notice of withdrawal, pays may be withdrawn, by check or otherwise, prior to interest that has accrued on a savings deposit during the date of maturity, which shall be not less than 30 the preceding interest period, it shall, upon request days after the date of the deposit,2 or prior to the and without requiring such notice, pay interest that expiration of the period of notice which must be has accrued during said period on the savings deposits given by the depositor in writing not less than 30 days of every other depositor. No member bank shall in advance of withdrawal.3 change its practice with respect to the requiring or (e) Savings deposits.—The term “savings deposit” waiving of notice of withdrawal of savings deposits means a deposit— for the purpose of discriminating in favor of or against any depositor or depositors, and no such (1 ) which consists of funds deposited to the credit change of practice shall be made except pursuant to of one or more individuals, or of a corporation, asso­ duly recorded action of the bank’s board of directors ciation, or other organization operated primarily for or a properly authorized committee thereof. religious, philanthropic, charitable, educational frater­ nal, or other similar purposes and not operated for (b) Loans on security of savings deposits.-If it is profit;4 or in which the entire beneficial interest is held not the practice of a member bank to require notice of withdrawal of savings deposits, no restrictions are 3 Deposits, such as Christmas club accounts and vacation imposed by this part upon loans by such bank to its club accounts, which are made under written contracts pro­ depositors upon the security of such deposits. If it is viding that no withdrawal shall be made until a certain number the practice of a member bank to require notice of of periodic deposits have been made during a period of not less than 3 months constitute “time deposits, open account” even withdrawal of a savings deposit, such bank may though some of the deposits are made within 30 days from the make loans to a depositor upon the security of such end of the period. deposit, but the rate of interest on such loans shall * A deposit with respect to which the bank merely reserves the right to require notice of not less than 30 days before any be not less than 2 per cent per annum in excess of withdrawal is made is not a “time deposit, open account”, the rate of interest paid on such deposit. within the meaning of the above definition. 4 Deposits in joint accounts of two or more individuals may (c) Manner of payment of savings deposits.—(1) be classified as savings deposits if they meet the other require­ Subject to the provisions of subparagraph (2) of this ments of the above definition, but deposits of a partnership paragraph, a member bank may permit withdrawals operated for profit may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest to be made from a savings deposit only through is held by a corporation, partnership, association, or other organization operated for profit or not operated primarily for religious, philanthropic, charitable, educational, fraternal, or s The exercise by the bank of its right to require such notice other similar purposes may not be classified as savings deposits. shall not cause the deposit to cease to be a savings deposit. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 53 payment7 to the depositor himself (but not to any Order Approving Merger of Banks other person whether or not acting for the depositor), except There has come before the Board of Governors, (i) where the deposit is represented by a passbook, pursuant to the Bank Merger Act, as amended to any person presenting the passbook; ’ (ii) to an executor, administrator, trustee, or other (12 U.S.C. 1828(c), Public Law 89-356), an ap­ fiduciary holding the savings deposit as part of a plication by Security Bank, Webster, South fiduciary estate, or to a person, other than the bank, Dakota, a State member bank of the Federal Re­ holding a general power of attorney granted by the depositor; serve System, for the Board’s prior approval of (iii) to any person, including the bank, that has ex­ the merger of that bank and Farmers and Mer­ tended credit to the depositor on the security of the chants State Bank, Roslyn, South Dakota, under savings deposit, where such payment is made in order to enable the creditor to realize upon such security; the charter and title of Security Bank. As an in­ (iv) pursuant to the order of a court of competent cident to the merger, the sole office of Farmers jurisdiction; (v) upon the death of the depositor, to any person and Merchants State Bank would become a branch authorized by law to receive the deposit; or of the resulting bank. Notice of the proposed mer­ (vi) interest paid to a third person pursuant to ger, in form approved by the Board, has been written instruction or assignment by the depositor accepted by the bank, and placed on file therein. published pursuant to said Act. (2) Notwithstanding the provisions of subpara­ Upon consideration of all relevant material in graph (1) of this paragraph, no withdrawal shall be the light of the factors set forth in said Act, in­ permitted by a member bank to be made from a savings deposit, through payment to the bank itself cluding reports furnished by the Comptroller of or through transfer of credit to a demand or other the Currency, the Federal Deposit Insurance Cor­ deposit account of the same depositor (other than poration, and the Attorney General on the com­ of interest on the savings deposit) if such payment or transfer is made pursuant to any advertised plan petitive factors involved in the proposed merger. or any agreement, written or oral, It Is hereby ordered, for the reasons set (i) which authorizes such payments or transfers forth in the Board’s Statement of this date, that of credit to be made as a normal practice in order to cover checks or drafts drawn by the depositor said application be and hereby is approved, pro­ upon the bank; or vided that said merger shall not be consummated (ii) which provides that such payments or trans­ fer of credit shall be made at daily, monthly, or (a) before the thirtieth calendar day following other such periodic intervals, except where made to the date of this Order or (b) later than three enable the bank, on the depositor’s behalf and pur­ months after said date. suant to his written instructions, to effect the payment of instalments of principal, interest, or other charges Dated at Washington, D. C., this 22nd day of (including taxes or insurance premiums) due on a real estate loan or mortgage. December, 1966. (3) Where a savings deposit is evidenced by a By order of the Board of Governors. passbook, every withdrawal made upon presentation of the passbook shall be entered in the passbook at Voting for this action: Chairman Martin, and Gover­ the time of withdrawal, and every other withdrawal nors Robertson, Shepardson, Mitchell, Daane, Maisel, from such a deposit shall be entered in the pass­ book as soon as practicable after the withdrawal is and Brimmer. made. (Signed) Merritt Sherman, Secretary. ORDERS UNDER BANK MERGER ACT [seal] The following Orders and Statements were is­ sued by the Board of Governors in connection with actions with respect to applications for ap­ Statement proval of the merger of banks. Security Bank, Webster, South Dakota, with total deposits of about $4 million, has applied, SECURITY BANK, pursuant to the Bank Merger Act (12 U.S.C. 1828 WEBSTER, SOUTH DAKOTA (c), as amended by Public Law 89-356), for the Board’s prior approval of the merger of that bank In the matter of the application of Security with Farmers and Merchants State Bank, Roslyn, Bank for approval of merger with Farmers and South Dakota (“Roslyn Bank”), which has total Merchants State Bank deposits of about $1 million.1 The banks would T Payment from a savings deposit or presentation of a pass­ book may be made over the counter, through the mails, or otherwise. 1 Figures are as of June 30, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN - JANUARY 1967 merge under the charter and name of Security THE BANK OF VIRGINIA, Bank, which is a member of the Federal Reserve RICHMOND, VIRGINIA System. As an incident to the merger, the single In the matter of the application of The Bank office of Roslyn Bank would become a branch of of Virginia for approval of merger with The Security Bank, increasing the number of its offices Bank of LaCrosse to two. Competition. The single office of Security Bank Order Approving Merger of Banks is in Webster, which is the seat of Day County and its largest community (population about There has come before the Board of Governors, 2,700). Roslyn (population about 260), the site pursuant to the Bank Merger Act, as amended of the sole office of Roslyn Bank, is 12 miles north (12 U.S.C. 1828(c), Public Law 89-356), an ap­ of Webster. Both communities are in northeastern plication by the Bank of Virginia, Richmond, South Dakota. The economy of the area is sup­ Virginia, a State member bank of the Federal ported by agriculture, with an emphasis on the Reserve System, for the Board’s prior approval of raising of livestock and small grain. the merger of that bank and The Bank of La­ There is no significant competition between the Crosse, LaCrosse, Virginia, under the charter and two banks. Recently, Roslyn Bank was acquired title of The Bank of Virginia. As an incident to by the interests which control Security Bank. the merger, the two offices of The Bank of La­ Even if common control were terminated, how­ Crosse would become branches of the resulting ever, the development of meaningful competition bank. Notice of the proposed merger, in form ap­ between these banks is unlikely because of their proved by the Board, has been published pursuant small size and the essentially local nature of their to said Act. business. Upon consideration of all relevant material in The nearest other banking offices to Roslyn the light of the factors set forth in said Act, in­ and Webster are operated by six small banks, cluding reports furnished by the Comptroller of which are situated from 11 to 24 miles distant the Currency, the Federal Deposit Insurance Cor­ and range in deposit size from about $1 million to poration, and the Attorney General on the com­ $4 million. These banks draw the vast bulk of petitive factors involved in the proposed merger, their business from their own communities, and It is hereby ordered, for the reasons set forth would not be adversely affected by the merger. in the Board’s Statement of this date, that said The effect of the proposed merger on compe­ application be and hereby is approved, provided tition would not be adverse. that said merger shall not be consummated (a) Financial and managerial resources and future before the thirtieth calendar day following the prospects. The banking factors with respect to the date of this Order or (b) later than three months subject banks are satisfactory, as they would be after the date of this Order. with respect to the resulting institution. Dated at Washington, D.C., this 29th day of Convenience and needs of the communities. The December, 1966. evidence shows that the increased lending limit of the resulting bank would benefit the residents By order of the Board of Governors. of both the Webster and Roslyn areas. In addi­ Voting for this action: Chairman Martin, and Gover­ tion, the replacement of Roslyn Bank by an office nors Shepardson, Mitchell, and Daane. Voting against of Security Bank would bring par banking and this action: Governors Maisel and Brimmer. Absent and not voting: Governor Robertson. other improved services to the Roslyn area. Summary and conclusion. In the judgment of the (Signed) Merritt Sherman, Secretary. Board, the proposed merger would benefit the banking convenience and needs of Roslyn and [seal] Webster, and would not have an adverse effect on banking competition. Statement Accordingly, the Board concludes that the ap­ The Bank of Virginia, Richmond, Virginia plication should be approved. (“Virginia Bank”), with total deposits of about Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 55 $231 million, has applied, pursuant to the Bank LaCrosse) of a Lawrenceville bank. It does not Merger Act (12 U.S.C. 1828(c), as amended by appear that either of these banks would be ad­ Public Law 89-356), for the Board’s prior ap­ versely affected by the merger. The next nearest proval of the merger of that bank with The Bank banking offices to LaCrosse Bank are the of LaCrosse, LaCrosse, Virginia (“LaCrosse Lawrenceville bank (15 miles distant) and the Bank”), which has total deposits of about $6 mil­ Boydton branch of Virginia Bank. lion.1 The banks would merge under the charter The effect of the merger on competition would and name of Virginia Bank, which is a member not be significantly adverse. of the Federal Reserve System. As an incident to Financial and managerial resources and future the merger, the two offices of LaCrosse Bank prospects. The banking factors with respect to would become branches of Virginia Bank, in­ each of the banks proposing to merge are reason­ creasing the number of its offices to 33.2 ably satisfactory, as they would be with respect to Competition. Virginia Bank is a subsidiary of the resulting bank. a registered bank holding company, Virginia Com­ Convenience and needs of the communities. monwealth Bankshares, Inc., which is the fourth The merger would have no material effect on the largest banking organization in Virginia. The hold­ convenience and needs of the communities in ing company’s seven subsidiary banks hold about which Virginia Bank presently operates offices. 6 per cent of the deposits held by the State’s 250- The replacement of LaCrosse Bank by offices odd banks, and the proposed merger would in­ of Virginia Bank, with its larger lending limit and crease its share of these deposits by about one­ broader range of bank services, would afford tenth of one per cent. No affiliate of the holding added convenience for those businesses in the company has offices nearer to LaCrosse Bank than LaCrosse/South Hill area that presently deal with Virginia Bank. out-of-area banks and other financial institutions. The head office of LaCrosse Bank is in La­ In addition, the availability of full-scale banking Crosse, a town with a population of about 750, services might have a favorable influence on the which is about 80 miles southwest of Richmond. local economy. The Bank operates a branch about three miles Summary and conclusion. In the judgment of northwest of LaCrosse at South Hill, a town with the Board, the proposed merger would benefit the a population of about 3,000. Both of these offices banking convenience and needs of the LaCrosse/ are in the eastern portion of Mecklenburg County. South Hill area, and would not result in any The nearest office of Virginia Bank to LaCrosse significantly adverse consequences for banking Bank is its branch at Boydton, a town with a competition. population of 450, which is the seat of Mecklen­ Accordingly, the Board concludes that the burg County. Boydton is about 16 miles west of application should be approved. the LaCrosse/South Hill area and the interven­ ing region is sparsely populated; Virginia Bank’s Dissenting Statement of Governors next nearest office to this area is about 40 miles Maisel and Brimmer distant. Virginia Bank is precluded by the re­ strictions of State law from establishing a de novo Virginia Bank is the fifth largest bank in the branch in LaCrosse or South Hill. State of Virginia. It is the largest of the seven There is only a minor degree of competition subsidiary banks of Virginia Commonwealth between LaCrosse Bank and Virginia Bank, and Bankshares, Inc., a registered bank holding com­ there is nothing to indicate that the banks would pany, which is the fourth largest banking or­ become significant competitors if they did not ganization in the State. Since it commenced busi­ merge. ness in 1962, this holding company has acquired The principal competition for LaCrosse Bank is 14 banks, either directly or through mergers by provided by a bank headquartered in South Hill its subsidiaries. and by the Broadnax branch (four miles east of Virginia Commonwealth Bankshares and the three largest banking organizations in Virginia al­ 1 Figures are as of June 30, 1966. ready account for over 39 per cent of the de­ 2 Includes three authorized branches that have not yet opened. posits and for nearly 30 per cent of the offices Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN • JANUARY 1967 of the State’s 250-odd banks. In addition, the The majority approves the application essen­ eight largest banking organizations in Virginia tially on the ground that the merger “would afford presently hold more than 58 per cent of the de­ added convenience for those businesses in the posits in the State, and they operate nearly 47 LaCrosse/South Hill area that presently deal with per cent of the banking offices. These facts are out-of-area banks and other financial institutions.” ignored by the majority. On the face of it, it appears that the extent of this A continuing trend in Virginia leading to the benefit would not be great in view of the ac­ concentration of banking resources in a handful cessibility to the area of the branch of Virginia of large banking organizations would be clearly Bank at Boydton, the seat of Mecklenburg inconsistent with the preservation of effective County, which is 16 miles away across a rural banking competition in the State. Indeed, it is region. Further, there is no evidence that the local quite plain that if the trend is allowed to con­ businesses that finance outside the LaCrosse/ tinue, it will lead to a banking oligopoly. Such South Hill area do so because their needs cannot a result is equally undesirable, whether it is be conveniently met at, or near, home. They use achieved through large bites, a series of nibbles, financial institutions that are situated at greater or some combination of both. distances than the Boydton branch of Virginia Because of the degree of banking concentra­ Bank. In addition, the record before us makes it tion in the State of Virginia, we feel that further clear that the principal competitors of LaCrosse acquisitions by any of the larger banking or­ Bank have few calls for loans in excess of their ganizations should depend upon a clear showing lending limits and that when such demands do of improved benefits to the banking public. We arise, they can be met by placing overlines with find no evidence of any such benefit in the correspondent banks. These principal competitors record of this case. Moreover, we think the include the bank headquartered in South Hill and merger of Virginia Bank and LaCrosse Bank will the branch of the Lawrenceville-based bank at have adverse effects for banking competition in Broadnax, only four miles from LaCrosse. The fact the local area. that some businesses in LaCrosse and South Hill LaCrosse Bank operates its head office in choose, in these circumstances, to finance through LaCrosse and a branch in South Hill, both in the “out-of-area” institutions may be a tribute to the eastern portion of Mecklenburg County. The competitive acumen of the latter, but it is a weak county is forested but also has tobacco and and insufficient reason for approving this merger. general farming. There are no banks between the As its other reason for approving the merger, LaCrosse Bank and the Boydton branch of Vir­ the majority states that “the availability of full­ ginia Bank. Since this is a sparsely settled area, scale banking services might have a favorable in­ competition between the two has not been great. fluence on the local economy.” We agree that, On the other hand, the existence of an alternative in many instances, a community can benefit from source of supply, particularly for loans, may be the addition of a source of full-scale banking extremely important for those concerned. It is this services. However, simply to make banking serv­ type of safety valve that the Bank Merger Act ices available is not sufficient to create a demand is supposed to protect. for them. Instead, there must be a reasonable The number of banking alternatives in this nexus between the availability of such services area has been falling rapidly. Three independent and the indigenous sources of economic growth. banks have been eliminated by merger in the This nexus currently does not exist in the La­ past six months. Authorizing an additional merger Crosse/South Hill area—a fact the majority does at this time means that the number of alternative not deny. banking sources available to the inhabitants of the In our judgment, the approval of this merger county has been cut nearly in half within a year. subordinates the public interest to the corporate Clearly, such a continued chipping away of com­ interests and convenience of the applicant, which petition should only be authorized when it has is exactly the reverse of what the Banker Merger been shown that there are major advantages to Act requires. the community based upon the shift in bank Therefore, we think the application should be ownership. denied. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 57 ORDERS UNDER SECTION 3 OF BANK proposal, requested the Board to deny the Whitney HOLDING COMPANY ACT application pending before the Board. Attorneys for Whitney Holding Corporation filed a motion, The Board of Governors issued the following dated December 3, 1966, to withdraw the applica­ Order granting the motion to withdraw an appli­ tion for approval of its becoming a bank holding cation, and vacating its previous Order granting company, for the stated reasons that Whitney approval to become a bank holding company, National Bank in Jefferson Parish has not yet been Order for a hearing on an application to become opened for business and would not be opened in a bank holding company, and Order extending the the foreseeable future. The Whitney motion sug­ period of time within which a corporation may gests that the Board of Governors vacate its Order become a bank holding company. The Board also of May 3, 1962, which had granted Board ap­ issued the following Orders and Statements ap­ proval to the Whitney proposal. That Order is now proving or denying applications by bank holding before the Board on reconsideration, after remand companies for acquisition of voting shares of from the United States Court of Appeals for the banks: Fifth Circuit. No opposition to the Whitney motion to withdraw has been received by the WHITNEY HOLDING CORPORATION, Board. JEFFERSON PARISH, LOUISIANA After due consideration of the motion on be­ In the matter of the application of Whitney half of Whitney, and of the interests of all partici­ pants in this proceeding, the Board has concluded Holding Corporation for approval of its becoming that the Whitney motion should be granted and a bank holding company by acquiring the stock the Board’s aforementioned Order of May 3, of Crescent City National Bank, New Orleans, 1962, should be vacated. Accordingly, Louisiana, and Whitney National Bank in Jeffer­ son Parish, Jefferson Parish, Louisiana. It is hereby ordered that: 1. The motion of December 3, 1966, of Whit­ Order Granting Motion To ney Holding Corporation to withdraw its applica­ Withdraw Application tion for approval to become a bank holding com­ By Order dated January 24, 1966, the Board of pany is granted. Governors continued the proceeding herein, pend­ 2. The Board’s Order of May 3, 1962, in the ing a final decision in the case of Whitney Na­ matter of the application of Whitney Holding tional Bank in Jefferson Parish, et al. v. A. Clayton Corporation to become a bank holding company James, State Bank Commissioner of the State of is vacated. Louisiana, No. 6745 in the Court of Appeal, First 3. The proceeding before the Board, on remand Circuit, State of Louisiana (Whitney v. James). (by Order dated March 1, 1965) from the United On or about June 13, 1966, the Louisiana Court States Court of Appeals for the Fifth Circuit, is of Appeal concluded that the provisions of the concluded and the record closed. Louisiana anti-bank holding company statute, par­ Dated at Washington, D. C., this 30th day of ticularly Section 3(5) of Louisiana Act 275 of December, 1966. 1962, LA. R.S. 6:1003(5), were not unconstitu­ tional and were applicable to the Whitney pro­ By order of the Board of Governors. posal. On November 7, 1966, the Supreme Court of the State of Louisiana denied a petition to re­ (Signed) Merritt Sherman, Secretary. view the decision of the Louisiana Court of Ap­ peal in Whitney v. James. [seal] Following the aforesaid decision of the Supreme CENTRAL WISCONSIN BANKSHARES, INC., Court of Louisiana, the attorneys for Bank of WAUSAU, WISCONSIN New Orleans and Trust Company, New Orleans, Louisiana, Guaranty Bank and Trust Company, In the matter of the application of Central Lafayette, Louisiana, and Bank of Louisiana in Wisconsin Bankshares, Inc., Wausau, Wisconsin, New Orleans, New Orleans, Louisiana, participat­ pursuant to Section 3 of the Bank Holding Com­ ing in this proceeding in opposition to the Whitney pany Act of 1956. Docket No. BHC-81 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN • JANUARY 1967 Order for Hearing be in restraint of trade; whether any anticom­ petitive effects found with respect to the pro­ On November 18, 1966, there was published in posed transaction are clearly outweighed in the the Federal Register (31 Federal Register 14705) public interest by the probable effect of the a notice of receipt by the Board of Governors of transaction in meeting the convenience and needs an application, filed pursuant to section (3) (a) of of the community to be served; the Bank Holding Company Act of 1956 (12 (3) the financial and managerial resources U.S.C. 1842(a), as amended by Public Law 89­ and future prospects of the company and the 485), by Central Wisconsin Bankshares, Inc., banks concerned, and the convenience and needs Wausau, Wisconsin, for the Board’s prior approval of the community to be served. of action whereby Applicant would become a bank It is further ordered, that any person holding company through the acquisition of up to desiring to give testimony, present evidence, or 100 per cent of the voting shares of Mosinee Com­ otherwise participate in these proceedings should mercial Bank, Mosinee, Wisconsin. file with the Secretary, Board of Governors of Pursuant to section 3(b) of the said Act, the the Federal Reserve System, Washington, D. C. Board is required to notify the appropriate Federal 20551, on or before January 25, 1967, a written or State supervisory authority of the filing of the request containing a statement of the nature of application; to allow 30 days for the submission of the petitioner’s interest in the proceedings, the views and recommendation by such authority; and extent of the participation desired, a summary of if, within such 30-day period, the said authority the matters concerning which petitioner wishes disapproves the application in writing, to schedule to give testimony or submit evidence, and the a hearing on the application. names and identity of witnesses who propose to Notice of receipt of the subject application was appear. Requests will be presented to the des­ duly given to the Commissioner of Banks for the ignated hearing examiner for his determination State of Wisconsin. Within 30 days of the Com­ and persons submitting them will be notified of missioner's receipt of such notice he submitted to his decision. the Board in writing a recommendation that the application be denied. Accordingly, Dated at Washington, D. C., this 6th day of It is hereby ordered that, pursuant to section January, 1967. 3(b) of the said Act, and section 222.4(f) of the By order of the Board of Governors. Board’s Regulation Y (12 CFR Part 222.4(f)), a (Signed) Merritt Sherman, public hearing with respect to this application be Secretary. held commencing at 10 a.m. on February 7, 1967, [seal] at the Federal Reserve Bank of Chicago, Chicago, Illinois, before a duly designated hearing examiner, FIRST FLORIDA BANCORPORATION, such hearing to be conducted in accordance with HAINES CITY, FLORIDA the Board’s Rules of Practice for Formal Hear­ ings (12 CFR Part 263). In the matter of the application of First Florida It is further ordered, that the following Bancorporation, Haines City, Florida, for ap­ matters will be the subject of consideration at proval of the acquisition of voting shares of 'Il said hearing, without prejudice to the designation banks in the State of Florida. of additional related matters and questions upon further examination: Order Extending Period of Time Prescribed (1) whether the proposed acquisition would By Proviso in Order of Approval result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize Whereas, by Order dated October 19, 1966, or to attempt to monopolize the business of the Board of Governors, pursuant to section 3(a) banking in any part of the United States; of the Bank Holding Company Act of 1956 (12 (2) whether the effect of the proposed ac­ U.S.C. 1842(a), as amended by Public Law 89­ quisition in any section of the country may be 485) and section 222.4(a) of Federal Reserve substantially to lessen competition, or to tend to Regulation Y (12 CFR 222.4(a)), approved the create a monopoly, or in any other manner would application by First Florida Bancorporation, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 59 Haines City, Florida, for approval of action to of the acquisition of up to 100 per cent of the become a bank holding company through the voting shares of The Merchants National Bank of acquisition of a sufficient number of voting shares New Bedford, New Bedford, Massachusetts. of each of 11 banks in the State of Florida so as As required by section 3(b) of the Act, the to bring Bancorporation’s direct ownership in each Board notified the Comptroller of the Currency bank up to at least 51 per cent; and said Order of receipt of the application and requested his was made subject to the proviso “that the acquisi­ views and recommendation. The Comptroller in­ tion so approved shall not be consummated . . . terposed no objection to approval of the applica­ (b) later than three months after said date [of tion. Order]”; and Notice of receipt of the application was pub­ Whereas, First Florida Bancorporation has lished in the Federal Register on October 12, 1966 applied to the Board for an extension of time (31 Federal Register 13183), which provided an within which the approved acquisition may be con­ opportunity for submission of comments and summated, and it appearing to the Board that rea­ views regarding the proposed acquisition. Time for sonable cause has been shown for the extension of filing such comments and views has expired and time requested, and that such extension would not all those filed with the Board have been consid­ be inconsistent with the public interest, ered by it. It is hereby ordered, that the Board’s Order It is hereby ordered, for the reasons set of October 19, 1966, as published in the Federal forth in the Board’s Statement of this date, that Register on October 25, 1966 (31 Federal Regis­ said application be and hereby is approved, pro­ ter 13734), be and it hereby is amended so that vided that the acquisition so approved shall not the proviso relating to the date by which the be consummated (a) before the thirtieth calendar acquisition approved shall be consummated shall day following the date of this Order or (b) later read “(b) later than March 19, 1967.” than three months after said date. Dated at Washington, D. C., this 6th day of Dated at Washington, D. C., this 21st day of January, 1967. December, 1966. By order of the Board of Governors. By order of the Board of Governors. (Signed) Merritt Sherman, Voting for this action: Chairman Martin, and Gover­ nors Shepardson, Mitchell, Daane, Maisel, and Brim­ Secretary. mer. Voting against this action: Governor Robertson. [seal] (Signed) Merritt Sherman, Secretary. BAYSTATE CORPORATION, BAYSTATE, MASSACHUSETTS [seal] In the matter of the application of Baystate Statement Corporation, Boston, Massachusetts, for approval of the acquisition of voting shares of The Mer­ Baystate Corporation, Boston, Massachusetts chants National Bank of New Bedford, New Bed­ (“Applicant”), a registered bank holding com­ ford, Massachusetts. pany, has filed with the Board, pursuant to section 3(a) of the Bank Holding Company Act, as Order Approving Application Under Bank amended (“the Act”), an application for approval Holding Company Act of the acquisition of up to 100 per cent of the voting shares of The Merchants National Bank of There has come before the Board of Governors, pursuant to section 3(a) of the Bank Holding New Bedford, New Bedford, Massachusetts (“Bank”). Company Act of 1956 (12 U.S.C. 1842(a), as amended by Public Law 89-485) and section Applicant, one of the two registered bank hold­ 222.4(a) of Federal Reserve Regulation Y (12 ing company groups operating in Massachusetts, CFR 222.4(a)), an application by Baystate Cor­ at December 31, 1965,1 (adjusted for acquisition poration, Boston, Massachusetts, a registered bank 1 Unless otherwise indicated, all banking data holding company, for the Board’s prior approval noted are as of this date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN • JANUARY 1967 on May 31, 1966, of Lynn Safe Deposit and Trust would be increased to 10.2 per cent. Company) controlled 11 banks, which operated Applicant is the only bank holding company 130 offices with total deposits of about $700 operating in Bristol County. Its only subsidiary in million. the county is Manufacturers National Bank of Bank, with total deposits of $40.5 million, op­ Bristol County, which has its head office in North erates six offices in the City of New Bedford, Attleborough some 35 miles northwest of New Bristol County, Massachusetts. New Bedford is Bedford, with total deposits of $15 million, rep­ situated approximately 56 miles south of Boston, resenting 5 per cent of the total deposits of the and 33 miles southeast of Providence, Rhode commercial banks in the county. Acquisition of Island. Bank’s primary service area 2 consists of Bank would increase to 20 per cent Applicant’s the City of New Bedford and the contiguous control of the deposits held by all commercial towns of Acushnet, Dartmouth, and Fairhaven. banks in Bristol County. Within Bank’s primary Views and recommendation of supervisory au­ service area there are three commercial banks, in­ thority. As required by section 3(b) of the Act, cluding Bank, with aggregate total deposits of $87 notice of receipt of the application was given to, million. Bank is the largest of these three, holding and views and recommendation requested of, the approximately 47 per cent of their aggregate total Comptroller of the Currency. The Comptroller deposits. Second in size of the three banks, and interposed no objection to approval of the ap­ Bank’s principal competitor, is the First National plication. Bank of New Bedford which, with total deposits Statutory considerations. The Act prohibits of $39 million, controls 45 per cent of such aggre­ Board approval of any proposed acquisition which gate deposits. The smallest of the three banks in would result in a monopoly, or further any combi­ Bank’s service area has total deposits of $7 mil­ nation, conspiracy, or attempt to monopolize the lion. Three other commercial banks located in business of banking in any relevant area. Nor may Fall River, 13 miles from New Bedford, also com­ approval be given where the Board finds that the pete within Bank’s primary service area. These effect of a proposal may be substantially to lessen banks hold deposits of $39 million, $33 million, competition, or in any other manner be in re­ and $24 million, respectively. Bank controls 22 straint of trade, unless such anticompetitive effects per cent of the aggregate deposits held by the six are clearly outweighed by the probable effect of New Bedford area and Fall River commercial the transaction in meeting the convenience and banks. needs of the area to be served. The Board is also In addition to the aforementioned six commer­ required to consider the financial and managerial cial banks, at least six other commercial banks, resources and future prospects of the bank holding four located in Boston, 56 miles north of New company and banks concerned, and the conven­ Bedford, and two in Providence, Rhode Island, ience and needs of the community to be served. 33 miles west of New Bedford, each substantially Competitive effects of the proposed acquisition. larger than Bank, also compete for the large busi­ There are two bank holding company groups ness accounts originating within Bank’s primary operating in the State of Massachusetts, Shawmut service area. Competing with the aforementioned Association, Boston, Massachusetts, and Appli­ commercial banks for business originating within cant, which, respectively, rank second and third Bank’s service area are four savings banks located among the largest commercial banking organiza­ therein which, in the aggregate, hold 58 per cent tions in the State. Combined, Shawmut and Ap­ of the deposits of all banks 3 in the Fall River— plicant control 27.4 per cent of the offices and New Bedford area, compared with 9 per cent 20.3 per cent of the total deposits of commercial thereof controlled, respectively, by Bank and First banks in the State. Applicant’s acquisition of Bank National Bank of New Bedford. The evidence of would increase those percentages, respectively, by record supports the conclusion that consummation only .1 and .6 per cent. Applicant’s control of 9.7 of Applicant’s proposal would not result in a per cent of the aforementioned total deposits monopoly, nor appear to be in furtherance of any combination or conspiracy to monopolize the busi- 2 The area from which Bank derives 94 per cent of its deposits of individuals, partnerships, and cor­ 3 Reference herein to “all banks” includes savings porations. banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 61 ness of banking in the State of Massachusetts or prospects. Applicant’s financial resources are re­ in any relevant section of the State. garded as satisfactory, and its prospects favorable, The aforementioned Manufacturers National premised in the main on the sound financial his­ Bank of Bristol County is the closest of Appli­ tory and condition and the satisfactory deposit cant’s subsidiary banks to New Bedford. The and earnings growth of its subsidiary banks. The primary service areas of Manufacturers and Bank managements of Applicant and of its subsidiary do not overlap and, according to Applicant, Man­ banks are considered to be satisfactory. ufacturers has but one account originating within Bank’s financial resources are likewise viewed Bank’s primary service area. as satisfactory. Its management, apparently less The absence of meaningful competition be­ aggressive in operations than its local competitors, tween Manufacturers and Bank is established in is nevertheless capable. Bank’s chief executive the record before the Board. The unlikelihood of officer is past retirement age, and the ages of three significant future competition arising between of Bank’s four vice presidents range from 62 to those banks is reasonably concluded in view of 75 years. While Applicant is in position to the disparity in the sizes of the banks, the dis­ strengthen Bank’s present management and to tances separating their closest offices (35 miles), attract potential management replacement, no im­ and the number of banking offices located be­ mediate change in management personnel is con­ tween them. templated. Moreover, Bank’s size and location Considering next the probable effect of Bank’s would appear to offer sufficient inducement as to acquisition by Applicant on the banks with which enable Bank, apart from Applicant’s assistance, Bank competes, Bank’s primary service area is to attract executive level personnel capable of fill­ served by five banks in addition to Bank. Two of ing future vacancies. Accordingly, the sole aspect the five banks are located in the area, and the of Applicant’s proposal relating to management remaining three are in Fall River, some 13 miles succession that offers weight toward approval of from New Bedford. Bank’s New Bedford area the application is the likelihood that a less con­ competitors have deposits totaling, respectively, servative attitude toward extension of banking $39 million and $7 million. The record reflects service might more immediately be reflected in further that at least six commercial banks, four Bank as a subsidiary of Applicant than would located in Boston, Massachusetts and two in Provi­ otherwise be the case. dence, Rhode Island, each substantially larger In summary, the Board finds that the evidence than Bank, also compete for the larger business bearing on the banking factors is consistent with, accounts originating within Bank’s primary service and offers slight weight toward, approval of the area. Vigorous competition for savings is offered application. by four savings banks, three of which, with depos­ Convenience and needs of the areas to be its ranging from $50.7 million to $117 million, are served. Bank’s primary service area, earlier delin­ larger than Bank. eated, has a population of approximately 140,000, Although it is possible that Bank’s $7 million 100,000 of which reside in and around New Bed­ New Bedford area competitor may initially expe­ ford, the situs of Bank’s six offices. New Bedford rience a different, and perhaps somewhat in­ is an important port city for the movement of creased, competitive force from Bank’s affiliation area products including food, fuel oil, textiles, with Applicant, it is the Board’s judgment that the electrical machinery, and rubber products. Ac­ total impact on that bank will not be significantly cording to the most recent data available, some greater than that now faced by it from the com­ 2,400 New Bedford area business firms, including mercial and savings banks with which it is pres­ 261 manufacturers, employed nearly 40,000 per­ ently in competition in varying degrees. sons. Acushnet is a relatively small manufacturing On the basis of the evidence presented, the and agricultural town, and Dartmouth and Fair­ Board concludes that consummation of Appli­ haven are residential suburbs of New Bedford. cant’s proposal will not result in any substantial No showing has been made that the banks lessening of competition, nor will it in any other serving the businesses and residents within Bank’s manner be in restraint of trade. primary service area are lacking for any major Financial and managerial resources and future banking service. While Bank could, and as a sub- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

62 FEDERAL RESERVE BULLETIN • JANUARY 1967 sidiary of Applicant apparently would, expand plicant’s proposal can be given only upon a show­ somewhat the scope and nature of its services, ing that the anticompetitive effects evidenced in such an occurrence would, by the nature of the the proposal are clearly outweighed in the public service improvements indicated, benefit primarily interest by the probable effect of the transaction Bank, and less significantly the public. This result in meeting the convenience and needs of the com­ offers but little weight for approval, but is con­ munities involved. sistent therewith. Nothing in the record before the Board suggests Summary and conclusion. In the light of the an existing lack of major banking services. Nor is factors set forth in the Bank Holding Company the majority’s approval premised on a finding of Act, and on the basis of the relevant facts of any such deficiency. The communities here in­ record, the Board concludes that Applicant’s ac­ volved, with a total population of 140,000, have quisition of Bank will not have significantly ad­ immediately available three commercial banks, verse competitive consequences, and that con­ two of which are of $40 million size, and four siderations relating to the banking factors, and to savings banks, three of which are larger than the convenience and needs of the area to be Bank. In addition, the businesses and residents of served, together offer some support for approval these communities are served in varying degree of the application. Accordingly, it is the Board’s and nature by at least nine other commercial judgment that the proposed acquisition is in the banks near the size of or much larger than Bank. public interest and that the application should be In the foregoing circumstances, Applicant’s bur­ approved. den of establishing that consummation of its pro­ posal is related to any existing community need is substantial—and has not been satisfied in this Dissenting Statement of Governor case. Robertson Accordingly, I would deny the application. I do not agree with the conclusion of the ma­ COMMERCIAL BANCORP, INC., jority that Baystate’s proposed acquisition of The MIAMI, FLORIDA Merchants National Bank of New Bedford would be in the public interest. Baystate presently con­ In the matter of the application of Commercial trols 18 per cent of the offices and 10 per cent of Bancorp, Inc., Miami, Florida, for approval of the the aggregate deposits of all commercial banks in acquisition of voting shares of Bank of Palm the State. The five largest commercial banking Beach and Trust Company, Palm Beach, Florida. organizations in the State, among which are in­ Order Approving Application Under Bank cluded Baystate and Shawmut Association, also a Holding Company Act registered bank holding company, control about 65 per cent of the aggregate deposits of commer­ There has come before the Board of Governors, cial banks. Merchants National Bank is the largest pursuant to section 3(a) of the Bank Holding commercial bank in Bristol County, controlling Company Act of 1956 (12 U.S.C. 1842(a), as nearly 15 per cent of the deposits of commercial amended by Public Law 89-485), and section banks therein. These deposits when added to those 222.4(a) of Federal Reserve Regulation Y (12 held by Baystate’s present subsidiary located in CFR 222.4(a)), an application by Commercial Bristol County would give Baystate control of 20 Bancorp, Inc., Miami, Florida, a registered bank per cent of the deposits of commercial banks in holding company, for the Board’s approval of the the county. Within Bank’s primary service area, acquisition of a minimum of 80 per cent of the acquisition of Bank by Baystate would give the outstanding voting shares of Bank of Palm Beach holding company control of about 47 per cent of and Trust Company, Palm Beach, Florida. the deposits of commercial banks in that area. As required by section 3(b) of the Act, the In the face of the foregoing evidence of present Board notified the Comptroller of the State of and prospective concentration of bank deposits, Florida of receipt of the application and requested both in a few large banking organizations and, his views and recommendation thereon. The State more particularly, under Applicant’s control, the Comptroller recommended approval of the appli­ statutory requirement is clear—approval of Ap­ cation. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 63 Notice of receipt of the application was pub­ president, Mr. H. T. Maroon, who is also Appli­ lished in the Federal Register on October 21, cant’s principal stockholder (51 per cent). A 1966 (31 Federal Register 13 624), which pro­ similar three for one exchange offer will be ten­ vided an opportunity for submission of comments dered to Bank’s minority shareholders. Applicant and views regarding the application. Time for does not intend to consummate the proposed ac­ filing such comments and views has expired and quisition unless it can acquire a minimum of 80 all comments and views filed with the Board have per cent of Bank’s outstanding shares. been considered by it. Views and recommendation of supervisory au­ It is hereby ordered, for the reasons set thority. As required by section 3(b) of the Act, forth in the Board’s Statement of this date, that the Board notified the Comptroller of the State said application be and hereby js approved, pro­ of Florida of receipt of the application and re­ vided that the acquisition so approved shall not quested his views and recommendation thereon. be consummated (a) before the thirtieth calendar The State Comptroller recommended approval of day following the date of this Order or (b) later the application. than three months after the date of the Order. Statutory considerations. Section 3(c) of the Act, as amended, provides that the Board shall Dated at Washington, D. C., this 29th day of not approve this acquisition if it will result in a December, 1966. monopoly, or if it is in furtherance of any com­ By order of the Board of Governors. bination or conspiracy to monopolize or to at­ tempt to monopolize the business of banking in Voting for this action: Governors Robertson, Shepardany part of the United States. Nor shall the Board son, Mitchell, Daane, Maisel, and Brimmer. Absent and not voting: Chairman Martin. approve this acquisition if the effect in any section of the country may be substantially to lessen com­ (Signed) Merritt Sherman, petition, or to tend to create a monopoly, or if the Secretary. transaction in any other manner would be in re­ [seal] straint of trade, unless the Board finds that the anticompetitive effects of the proposed transaction Statement are clearly outweighed in the public interest by Commercial Bancorp, Inc., Miami, Florida the probable effect of the transaction in meeting (“Applicant”), a registered bank holding com­ the convenience and needs of the community to pany, has applied to the Board of Governors, be served. The Board is required to take into con­ pursuant to section 3(a) of the Bank Holding sideration also the financial and managerial re­ Company Act of 1956, as amended by Public Law sources and future prospects of the bank holding 89-485 (“the Act”), for permission to acquire a company and the banks concerned, and the con­ minimum of 80 per cent of the voting shares of venience and needs of the community to be served. Bank of Palm Beach and Trust Company, Palm Competitive effect of proposed acquisition. Ap­ Beach, Florida (“Bank”). Applicant presently has plicant is the seventh in size of eight bank holding three subsidiary banks, all located in the Miami companies operating in the State of Florida. Fol­ area, which had combined total deposits of $46 lowing the acquisition of Bank, Applicant would million at December 31, 1965.1 Bank, with total rank fifteenth in size of all banking organizations deposits of about $32 million, is located some 60 in the State, controlling about 1 per cent of the to 80 miles north of each of Applicant’s present total deposits of all banks in Florida. subsidiary banks. Bank’s primary service area 2 consists of most Applicant proposes to acquire the aforestated of the City of Palm Beach and part of West Palm percentage of Bank’s stock through exchange of Beach. Bank is the fourth in size of five banks three shares of Applicant’s stock for each share located in its primary service area, and holds of Bank’s stock. On these terms, Applicant pro­ about 15 per cent of the total deposits of the five poses to acquire 95,000 (52 per cent) of Bank’s banks. Two of the banks in that area conoutstanding voting shares owned by Applicant’s - The area from which approximately 74 per cent 1 Unless otherwise indicated, all banking data of Bank’s deposits of individuals, partnerships, and noted are as of this date. corporations (“IPC deposits”) originate. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN • JANUARY 1967 trolling, respectively, 29 per cent and 22 per cent banks in the area. In the Board’s judgment, it will of the total deposits of the five banks are sub­ not experience any undue competitive conse­ sidiaries of bank holding companies—namely, quences from Applicant’s acquisition of Bank. A Atlantic National Bank of West Palm Beach and similar conclusion appears warranted with respect Florida National Bank and Trust Company, West to the eight banks located outside of, but com­ Palm Beach. The smallest bank in the area, Secu­ peting in, Bank’s area. Of these banks, the five rity Exchange Bank, West Palm Beach, is well that are considerably smaller than Bank are established and has deposits of about $14 million. located from five to eight miles from Bank, are The fifth of the area banks, First National Bank separated from Bank by Lake Worth, and are in of Palm Beach, has total deposits ($58 million) closer proximity to other banks, some of which representing about 28 per cent of the aggregate are larger than Bank, two of which are subsidi­ deposits held by the five banks. aries of bank holding companies. Bank’s acquisi­ In addition to the five banks located in Bank’s tion by Applicant will not, in the Board’s judg­ primary service area, eight other banks located ment, alter measurably the existing competitive outside the area are reported to compete therein. structure. Bank holds 1 1 per cent of the aggregate total de­ On the basis of the foregoing considerations, the posits ($301 million) held by the 13 banks. Ap­ Board concludes that consummation of Appli­ plicant’s acquisition of Bank would increase its cant’s proposal will neither result in any substan­ present control of deposits of all banks by only .4 tial lessening of competition nor in any other per cent. Applicant would remain the seventh in manner be in restraint of trade. size of bank holding companies and, as earlier Financial and managerial resources and future stated, would rank fifteenth in size of all banking prospects. Applicant commenced operations as a organizations in the State. It is reasonably con­ bank holding company in April 1965, when it ac­ cluded that Applicant’s acquisition of Bank will quired control of its present three subsidiary not result in a monopoly; nor is there evidence banks. Its principal asset is the stock of these that the proposal is in furtherance of any com­ banks. Based upon the satisfactory asset quality bination or conspiracy to monopolize or to at­ and generally satisfactory capital structure of the tempt to monopolize the business of banking in three banks, their financial resources, and those of any relevant area. Applicant, are considered to be satisfactory. Bank, Nor, in the Board’s judgment, is it likely that organized in 1953, has experienced sound finan­ consummation of Applicant’s proposal will result cial growth, and its financial resources are also in any substantial lessening of competition. As considered satisfactory. between Applicant’s present subsidiary banks and Viewed in light of the favorable economic out­ Bank, no significant competition presently exists. look for the areas served both by Applicant’s Some 60 or more miles separate Bank from Ap­ subsidiary banks and by Bank, it is concluded plicant’s present subsidiaries. Further, Fort that growth prospects for each of the banks are Lauderdale, with 12 commercial banks ranging in favorable. This conclusion obtains with respect size of deposits from $4 million to $71 million, is to Bank whether it is operated as part of Appli­ located between the Palm Beach area and the cant’s system or continues under its present Miami area. These facts reasonably support also ownership. the conclusion that little, if any, potential com­ Managements of Applicant, its subsidiary banks, petition between Applicant’s present subsidiary and Bank are all considered to be competent and banks and Bank will be foreclosed by the proposed experienced. Applicant does not intend to initiate acquisition. any changes in Bank’s present management upon The three banks located nearest to Bank are consummation of the acquisition. all larger than Bank in terms of total deposits, and Considerations relating to the financial and two of those banks are subsidiaries of bank hold­ managerial resources, and future prospects of Ap­ ing companies. The other bank located in the pri­ plicant, its subsidiary banks, and Bank are con­ mary service area is substantially smaller than sidered to be consistent with approval of the ap­ Bank, with $14 million of deposits, but has a plication. history of successful competition with the larger Convenience and needs of the area concerned. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 65 The City of Palm Beach, Bank’s location, is prin­ Order Denying Application Under cipally a resort town located in Palm Beach Bank Holding Company Act County. In the past 10 years, Palm Beach County There have come before the Board of Gover­ has been one of the fastest growing areas in the nors, pursuant to section 3(a) of the Bank Hold­ nation as regards population, income, and bank ing Company Act of 1956 (12 U.S.C. 1842(a), deposits. Since 1960 there have been more than as amended by Public Law 89-485), and section 40 new industrial plants or plant expansions in the 222.4(a) of the Federal Reserve Regulation Y County. Much of the employment growth has (12 CFR 222.4(a)), applications by General been in space-related industries where salary Bancshares Corporation, St. Louis, Missouri, a scales are generally high. Although future popula­ registered bank holding company, for the Board’s tion growth is not expected to be quite as rapid as prior approval of the acquisition of 80 per cent in recent years, the general economic outlook for or more of the voting shares of each of First Na­ the area is favorable. tional Bank in St. Louis, St. Louis, Missouri, and There is no evidence or assertion in the record St. Louis Union Trust Company, St. Louis, Mis­ that the major banking needs of the businesses souri. Subsequent to the filing of the applications, and residents in the Palm Beach area are not an amendment to the Bank Holding Company Act being adequately served. The proposed acquisition changed the definition of “bank” so as to exclude will have little effect on the convenience and needs therefrom St. Louis Union Trust Company. Con­ of that area. Applicant proposes to make available sequently, the application by General Bancshares to Bank computer facilities which Bank presently Corporation to acquire St. Louis Union Trust leases. This service, which would not normally be Company is not appropriate for action by the economically available to an institution the size of Board under section 3(a) of the Act. Bank, will be indirectly of some benefit to Bank’s As required by section 3(b) of the Act, the customers. Applicant asserts that its acquisition of Board notified the Comptroller of the Currency Bank will make available to its three banks and of receipt of the application and requested his to Bank, on a participation basis, a combined views and recommendation. The Comptroller rec­ lending limit nearly double that now available to ommended approval of the application. Applicant’s banks or to Bank, separately. How­ Notice of receipt of the application was pub­ ever, the four banks are already affiliated and are lished in the Federal Register on June 17, 1966 able, the Board believes, to arrange loan par­ (31 Federal Register 8508), which provided an ticipations almost as expeditiously now as they opportunity for submission of comments and could as co-subsidiaries. views regarding the proposed transaction. Time for Since no significant benefits will result from the filing such views and comments has expired and proposed acquisition, considerations relating to all those filed with the Board have been considered the “convenience and needs” factor are viewed as by it. being consistent with, but providing no strong weight for, approval of the application. It is hereby ordered, for the reasons set forth in the Board’s Statement of this date, that said Summary and conclusion. On the basis of all application by General Bancshares Corporation to relevant facts contained in the record, and in light acquire stock of First National Bank in St. Louis of the factors set forth in section 3(c) of the Act, be and hereby is denied. it is the Board’s judgment that the proposed trans­ action would be consistent with the public interest Dated at Washington, D. C. this 30th day of and that the application should therefore be ap­ December, 1966. proved. GENERAL BANCSHARES CORPORATION, By order of the Board of Governors. ST. LOUIS, MISSOURI Voting for this action: Chairman Martin, and Gover­ In the matter of the application of General nors Robertson, Shepardson, Mitchell, Daane, Maisel, and Brimmer. Bancshares Corporation, St. Louis, Missouri, for approval of the acquisition of voting shares of (Signed) Merritt Sherman, First National Bank in St. Louis, St. Louis, Mis­ Secretary. souri. [seal] Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN • JANUARY 1967 Statement tions. Accordingly, since the application to ac­ quire First National is being denied, it is pre­ General Bancshares Corporation, St. Louis, sumed that the application under section 4(c)(8) Missouri (“Applicant”), a registered bank hold­ will not be pursued. ing company, has filed with the Board, pursuant Even if the proposed acquisition of Union were to section 3(a) of the Bank Holding Company not contingent upon approval of Applicant’s ac­ Act of 1956, as amended (“the Act”), an applica­ quisition of First National, it is the Board’s view tion for approval of the acquisition of 80 per cent that its disapproval of the latter acquisition would or more of the outstanding voting shares of First preclude approval of the former. Union owns National Bank in St. Louis, St. Louis, Missouri about 29 per cent of the stock of First National. (“First National”). If the Board were to approve Applicant’s proposed Applicant controls one bank in Tennessee, three acquisition of control of Union, it would, in effect, banks in Illinois, and six banks in Missouri. Its 10 approve the indirect acquisition by Applicant of subsidiary banks operate a total of 15 offices, and more than 25 per cent of the stock of First Na­ had total deposits of $367 million as of December tional—which is the precise proposal that the 31, 1965.1 Applicant’s six Missouri subsidiaries, Board is denying in the accompanying order. with deposits of about $276 million, are all located in the St. Louis metropolitan area.2 Views and recommendation of supervisory au­ First National, with deposits of about $712 mil­ thority. As required by section 3(b) of the Act, lion, is the second largest bank in St. Louis and notice of receipt of the application was given to, in the State of Missouri. The acquisition of First and views and recommendation requested of, the National by Applicant would make Applicant, in Comptroller of the Currency. The Comptroller terms of total deposits held, the largest banking recommended approval of the application. organization in the State. Statutory considerations. The Act prohibits Simultaneously with its filing of the subject Board approval of any proposed acquisition which application, Applicant also applied, pursuant to would result in a monopoly, or further any com­ section 3(a) of the Act, for approval of its pro­ bination or conspiracy to monopolize or to at­ posed acquisition of 80 per cent or more of the tempt to monopolize the business of banking in voting shares of St. Louis Union Trust Company, any part of the United States. Nor may approval St. Louis, Missouri (“Union”), a non-deposit trust be given if the Board finds that the effect of a company which owns 29 per cent of the stock of proposal may be substantially to lessen competi­ First National. By reason of the July 1, 1966 tion, or in any other manner be in restraint of amendments to the Act, Union is no longer a trade, unless such anticompetitive effects are clearly “bank” for purposes of the Act, and its acquisi­ outweighed by the probable effect of the transac­ tion by Applicant would require Board approval tion in meeting the convenience and needs of the under section 4(c)(8) after due notice and hear­ area to be served. The Board is also required to ing, rather than under section 3(a). At the consider the financial and managerial resources Board’s suggestion, Applicant submitted a draft and prospects of the holding company and the request for a preliminary determination by the banks concerned, and the convenience and needs of Board that the proposed acquisition of stock of the communities to be served. Union would be permissible under section Competitive effects of proposed acquisition. 4(c)(8); Applicant withheld filing a formal re­ Applicant is one of two registered bank holding quest pending disposition of its application to ac­ companies with subsidiary banks in Missouri. It quire First National. By Applicant’s own decision, controls about 3 per cent of the total deposits of its acquisition of either First National or Union all Missouri banks, and the other holding com­ is contingent upon Board approval of both acquisipany controls less than 1 per cent. Applicant is the sixth largest banking organization in the State, 1 Unless otherwise indicated, all banking data and if it acquired control of First National, it noted are as of this date. 2 Missouri law prohibits the operation of branch would be the largest and would control nearly 12 offices by commercial banks other than one limited per cent of the deposits of all Missouri banks. drive-in or walk-up facility located no more than 1000 yards from the main banking office. There are 655 banks in Missouri, and the 10 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 67 largest banking organizations hold about 43 per being that area from which about 75 per cent of cent of all deposits. its IPC deposits arise, the smaller area consisting There are now four commercial banks situated of the City and County of St. Louis will be con­ in the St. Louis central business district. In 1950 sidered as First National’s primary service area. there were nine commercial banks in that area. First National’s primary service area is coex­ Five “downtown” banks have been eliminated tensive with that of Bank of St. Louis, and it com­ through mergers since that time, the most recent pletely encompasses the primary service areas of being the merger in 1965 of Mercantile Trust Applicant’s five other Missouri subsidiaries. First Company National Association (“Mercantile National is the second largest of 67 banks in that Trust”) with Security Trust Company. That area, and it holds 19 per cent of the total deposits merger is the subject of a pending anti-trust suit of those 67 banks. Applicant’s six subsidiary banks instituted by the United States. located in the area hold in the aggregate 7 per The four banks located in downtown St. Louis cent of the deposits of the 67 banks. If the pro­ include Mercantile Trust, with deposits of $929 posed acquisition were consummated, Applicant million, representing 45 per cent of the total de­ would emerge as the largest banking organization posits of the four banks; First National, with de­ in the area, and it would hold 26 per cent of posits of $712 million, representing 35 per cent; the deposits of all banks located therein. Boatmen’s National Bank, with $258 million of Analysis of the competitive effects of the ac­ deposits, representing 12 per cent; and Bank of quisition necessarily involves a study of the serv­ St. Louis ($160 million deposits, representing 8 ices being provided by the competing units. First per cent), which is presently Applicant’s largest National is one of three major “wholesale” banks subsidiary. If the proposed acquisition were ac­ in the St. Louis area—that is, it engages princi­ complished, Applicant would control about 43 per pally in serving banks and large corporate cus­ cent of the deposits of the four banks in down­ tomers whose activities are national and interna­ town St. Louis, and the number of competing tional in scope. Bank of St. Louis and Applicant’s banks located there would be reduced to three. smaller subsidiary banks in- the area, on the other First National derives 93 per cent of the num­ hand, engage principally in “retail” banking. To ber of its deposit accounts of individuals, part­ the extent that First National is a “wholesale” nerships, and corporations (“IPC”), totaling 80 bank and Applicant’s banking activties are “retail” per cent of the dollar amount of its total IPC de­ in nature, it could be concluded, as Applicant posits, from an area comprising the City of St. urges, that the joining together of these two forces Louis, all of St. Louis County, and part of St. would be complementary rather than anticompeti­ Charles County, Missouri, and parts of Madison tive. and St. Clair Counties, Illinois. In that area, which However, it appears that significant competition was designated by Applicant as First National’s exists between First National and Applicant’s primary service area, there are 95 banks with IPC banks for banking business in the “retail” cate­ deposits aggregating $3.4 billion. First National’s gory. Although First National holds a rather sub­ IPC deposits are about 14 per cent of that total, stantial amount of deposits of other banks, and and those of First National, plus Applicant’s sub­ while, in 1964, about two-thirds of the amount of sidiaries located therein, equal about 20 per cent of its IPC demand deposits were represented by ac­ the total for the 95 banks. counts having balances over $100,000, First Na­ From the smaller geographical area consisting tional is also a rather strong competitor for “re­ of St. Louis and St. Louis County, First National tail” banking services in St. Louis and the sur­ derives 77 per cent of its IPC balances and 89 rounding area. First National’s IPC demand de­ per cent of the number of its IPC accounts. Inas­ posits in accounts having balances below $100,000 much as (1) only about 3 per cent of the amount are about $100 million, which is nearly three times of First National’s IPC deposits and 4 per cent the total IPC demand deposits in Bank of St. Louis of its IPC deposit accounts are derived from the and more than all the IPC demand deposits held aforementioned areas outside the City and County by Applicant’s six subsidiary banks located in the of St. Louis, and (2) the Board has customarily area. First National’s IPC time and savings deposits considered a bank’s “primary service area” as equal about 23 per cent of its total deposits, with Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BULLETIN • JANUARY 1967 48 per cent of such deposits being represented by Further evidence of the competition existing savings accounts. Such savings deposits exceed the between First National and Applicant’s banks is total savings deposits held by Applicant’s six sub­ reflected in a study of the amounts of deposits sidiary banks in the St. Louis area. drawn by First National from the primary service With reference to First National’s loan port­ areas of Applicant’s banks. As of November 19, folio, in various “retail” categories 3 the total of 1965, and excluding deposit accounts of large such loans made by First National far exceeds organizations, First National derived the follow­ the aggregate of similar loans in Applicant’s six ing deposits from those areas (figures rounded): St. Louis-area subsidiaries. In asserting that the proposed acquisition would Although First National is one of the principal have no substantial anticompetitive effects, Appli­ “wholesale” banks in the St. Louis area, the fore­ cant appears to assume that the banks involved going data indicate that it is also a very important fall within three size categories, and that no com­ competitor for “retail” banking business. Regard­ petition exists between banks in these different less of whether Applicant’s subsidiary banks in the categories. It maintains, in effect, that First Na­ area, either individually or as a group, constitute tional competes only with the two other large a significant competitive force as far as First Na­ downtown “wholesale” banks, that Bank of St. tional is concerned, it is clear First National is a Louis’ competitive force should be viewed only very substantial competitor to Applicant’s banks. with reference to six other medium-size retail Competition between Applicant’s system and banks in the St. Louis area, and that Applicant’s First National apparently is not limited to “retail” other subsidiary banks, for purposes of competi­ services. As previously noted, Bank of St. Louis, tive analysis, should be considered as competing Applicant’s largest subsidiary, is one of the four only with other small neighborhood retail banks. downtown banks in that city. Although it may In the Board’s opinion, such a classification is be too small to compete for certain of the very not realistic. Although large “wholesale” banks large commercial accounts which First National may compete for certain accounts that are not seeks, it is, by Applicant’s admission, a strong available to smaller institutions, large banks gen­ competitor for business of medium-size and small erally, including those in St. Louis, are “full­ commercial enterprises in the area. In the Board’s service” institutions that compete with all banks judgment, the significant competition between within a limited geographical area. Similarly, al­ First National and Bank of St. Louis for this busi­ though a small neighborhood bank alone may not ness would be substantially, if not wholly, elimi­ offer significant competition to a “wholesale” bank, nated if the acquisition proposed were permitted. the collective competitive force of a number of neighborhood banks may be relatively strong. First National Sub A s p id p i l a i r c y a n B t’ a s nk The latter point was advanced by Applicant in its answer filed in response to the views of the Deposits originating in primary service (Named in left Department of Justice with respect to the prob­ area of: Number Average column) of De­ Balance able anticompetitive effects of the proposal. Appli­ posit Ac- of Accounts counts Number Average cant asserted that the Department failed to give of De­ Balance posit Ac­ of Ac­ proper consideration to the strong competitive im­ counts counts pact on the large downtown banks of the area’s Bank of St. Louis........... 64,000 $4,000 45,000 $1,700 medium-size and small neighborhood banks. This Jefferson-Gravois Bank.. 15,000 3,000 26,000 1 ,300 assertion, though directed at, and intended to Northwestern Bank and Trust Company.......... 18,000 6,000 17,000 1 ,500 mitigate the impact of, conclusions by the Depart­ Baden Bank of St. Louis. 2,800 1 ,700 25,000 1,100 Commercial Bank of St. ment based on the concentration of deposits in Louis County.............. 10,000 3,000 5,600 1 ,000 Lindbergh Bank............. 1 ,400 1,500 10,600 500 downtown St. Louis that would be under Appli­ cant’s control if the proposed acquisition took place, substantiates the Board’s view that signifi­ 3 Includes real estate loans secured by residential property, loans to individuals to purchase consumer cant competition presently exists between First goods (excluding automobiles) on an instalment National and Applicant’s subsidiaries and would basis, instalment loans to repair and modernize resi­ be eliminated by the acquisition. dential property, and single payment loans for house­ hold, family, and other personal expenditures. As earlier noted, Applicant’s request for per- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 69 mission to acquire control of First National is results would stem from its acquisition of First coupled with a plan to acquire Union Trust Com­ National, for the reason that there would still re­ pany. Union, which does not accept deposits, is main an adequate number of independent banking believed to conduct a larger volume of trust busi­ alternatives in the St. Louis area. It. is not the ness than any other institution in the State. Al­ reduction in the number of alternative banking though none of Applicant’s Missouri subsidiaries sources that is of principal concern to the Board; presently solicits trust business, four of them have rather, it is the elimination of competition that will been authorized to act in fiduciary capacities. Ac­ occur from Applicant’s acquisition of a large com­ quisition of control of Union by Applicant would petitor, together with the further resulting imforeclose the possibility that competition between balancing in the competitive situation. the two organizations for trust business might de­ Justification for the Board’s concern is believed velop hereafter. to be reflected in the following concentration com­ Another aspect of the proposed acquisition parisons involving the City and the County of St. relates to its probable effect on the competitive Louis. The relative sizes of the six largest compet­ position of other banks. In the downtown area of ing units in that area, in terms of total deposits, St. Louis, Mercantile Trust holds the largest vol­ may be stated as 100, 73, 28 (Applicant), 27, 15, ume of IPC deposits. The IPC deposits of First and 11. Following the acquisition of First Na­ National, Boatmen’s National Bank, and Bank of tional by Applicant, the relative sizes of the re­ St. Louis, amount to 72 per cent, 30 per cent, and maining five could be stated as 100 (Applicant), 16 per cent of those of Mercantile Trust, re­ 99, 26, 14, and 11. In terms of IPC deposits, the spectively. Otherwise stated, the relative sizes of relative sizes could be stated as 100, 68, 30 (Ap­ these four banks, in terms of IPC deposits, are plicant), 28, 15, and 14 before the proposed ac­ 100, 72, 30, and 16. In terms of total deposits, quisition; and 100, 98 (Applicant), 28, 15, and the relative sizes of these four banks can be stated 14 thereafter. Here again, although the effect of as 100, 77, 28, and 17. the acquisition might be to increase the degree of If First National were acquired by Applicant, competition between the two largest competing combining the deposit figures for the two banks units in the area, it would also tend to increase that would be under Applicant’s control, the rela­ still further their competitive advantage over the tive sizes of the three banking organizations in smaller institutions. downtown St. Louis could be stated, in terms of Subsequent to filing its application, Applicant IPC deposits, as 100, 88, and 30, and in terms of submitted additional arguments in support of its total deposits, as 100, 94, and 28. contention that the proposed acquisition would As evidenced by this analysis, the relative posi­ have no significant anticompetitive effects.5 For the tions of the largest and second largest competing most part, these arguments are cumulative of as­ units 1 located in St. Louis would be somewhat sertions in the application, the purpose of which altered by the proposed affiliation; however, the is to lessen the apparency of adverse impact size disparity between the second and third bank­ related to the concentration of deposits that would ing organizations, already considerable, would be result from the joining together of First National significantly increased. The acquisition, if con­ and Applicant’s St. Louis-area subsidiaries. The summated, might increase competition between Board finds unconvincing Applicant’s arguments the two largest banks, but, in the Board’s judg­ in this respect. In particular, the adverse nature ment, its effect on the competitive force and of the resulting concentration of resources is not position of the third wholesale bank in the area ameliorated by the fact urged by Applicant that would be detrimental. greater deposit-concentration ratios are found to Applicant contends that no anticompetitive exist in other major metropolitan areas. The at­ tention herein given to the issue of resulting de­ 1 Applicant’s system is considered as a single com­ posit concentration should not lessen the emphasis peting unit. However, when dealing with the down­ earlier given to the Board’s concern with respect town St. Louis area, consideration is given only to Applicant’s one bank located in that area; when to the substantial amount of competition between dealing with St. Louis and St. Louis County, all of Applicant’s banks located in that area are considered 5 Letter to the Federal Reserve Bank of St. Louis as a single competitor. dated September 29, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

70 FEDERAL RESERVE BULLETIN • JANUARY 1967 First National and Applicant that would be elimi­ a principal grain market and the second largest nated by consummation of this proposal. Rather, hog market in the world. It ranks behind only these considerations together constitute a compel­ Detroit in automobile production; and other im­ ling basis for the Board’s denial action in this case. portant industries include the processing and mar­ Regarding the question as to the extent to which keting of agricultural products, brewing, chemi­ Applicant’s proposal would result in elimination cals, metal products, transportation equipment, of competition, the Board recognizes that other and electrical machinery. Among the many na­ financial institutions in the St. Louis area provide tional firms that operate in the area is a corpora­ important competition to the commercial banks tion that employs over 42,000 persons in the for certain types of deposit and loan business. production of military aircraft, space capsules, However, in view of the extent to which existing and related products. There are four universities competition will be eliminated and potential com­ located in the St. Louis area, each of which is re­ petition foreclosed between First National and ported by Applicant to be engaged in multimillion Applicant’s subsidiaries as a result of the proposal, dollar expansion projects. it is the Board’s judgment that the conclusions Applicant alleges that the City of St. Louis, outlined above obtain whether or not competition especially its central business district, is, and has from sources other than commercial banks is been for a number of years, undergoing a general taken into account. economic decline, evidenced by decreases in popu­ Summarizing, it is the Board’s judgment that lation, decreases in the number of retail and First National, although principally a “wholesale” manufacturing businesses, decreases in the number bank, is a strong competitor for “retail” banking of employees, declines in property valuations, and business in the primary service area of each of declines in retail sales. There has been, according Applicant’s Missouri subsidiary banks. Conse­ to Applicant, a significant out-migration of indus­ quently, consummation of the proposed acquisi­ tries from the area, and few new firms have been tion would result in a substantial lessening of com­ attracted. However, in an effort to reverse this petition between First National and Applicant. trend, a substantial rebuilding program has re­ Further, the acquisition of First National, the portedly been in effect since 1959, and a number of second largest of 67 banks in the area consisting apartments, office buildings, and highways have of St. Louis and St. Louis County, by Applicant, been recently completed or are nearing completion. now the third largest competing unit in that area, Applicant’s arguments relating to the conven­ would result in a further increase of an already ience and needs of the area are basically fourfold. substantial size disparity between the large and According to Applicant, there are needs for, first, small banking organizations, with the two largest a greater supply of local credit to finance the ex­ organizations thereafter controlling 50 per cent of pansion of existing businesses, to attract new in­ the deposits of all banks. These results, in the dustries, and thereby to provide new jobs; second, Board’s judgment, are sufficiently anticompetitive larger banks which can make larger commercial that the application may not be approved unless and industrial loans to businesses; third, means such anticompetitive effects are clearly out­ of financing the growing volume of required weighed in the public interest by the probable ef­ municipal services and facilities; and finally, an­ fect of the transaction in meeting the convenience other bank in the area of sufficient size to make a and needs of the area to be served. major contribution toward the development of a Convenience and needs. The St. Louis Standard healthy economy for the St. Louis area. Metropolitan Statistical Area, with an estimated More specifically, the metropolitan area is the population of about 2,300,000 persons, ranks home office location of many large national firms tenth in size of such metropolitan areas in the whose credit needs are substantial and are increas­ country. The area possesses a number of impor­ ing. Applicant contends that, with the exception tant natural and man-made advantages. It is the of Mercantile Trust, the local banks are not large second largest rail center in the nation and a enough to meet the demands of these firms for major center for highway, air, and water trans­ credit and other services. To the extent that these portation. St. Louis is situated in the only area in credit needs are not being met, Applicant asserts, the country producing six basic metals, and it is loans and large “compensating balances” are leav- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 71 ing St. Louis for other financial centers. It is the the proposed affiliation with Applicant’s holding Applicant’s contention that the area needs larger company system. The Board believes that there banking institutions to meet these growing credit are potentially advantageous consequences in­ needs and that the proposal would bring together herent in efforts on the part of a bank to recap­ the combined $3.3 million proposed lending limits ture, maintain, or improve its market position. of Applicant’s subsidiary banks with the $5 mil­ However, where the vehicle for such action would lion lending limit of First National, and that this produce the adverse consequences apparent in Ap­ added capacity for making large Ioans would les­ plicant’s proposal, license to effectuate such a pro­ sen the frequency with which credit would have posal must be denied in the public interest. to be sought outside the area. Applicant proposes to make the services pro­ This argument, in the Board’s judgment, is vided by the bond and international departments difficult to reconcile with the actual banking situa­ of First National available on the premises of its tion in St. Louis. First National’s ratio of loans to present six subsidiary banks in the area. To this deposits was 65 per cent at year-end 1965, and its extent, such services would be more conveniently daily average for the first three months of 1966 provided to certain of the area’s residents and was reported to be 73.5 per cent. At December businesses. The affiliation of Applicant’s banks 31, 1965, Applicant’s six local banks had loan-to- with Union Trust Company might also make cer­ deposit ratios ranging from 63 to 72 per cent. tain trust services more conveniently available. Thus, either individually or in combination, these These favorable considerations, however, do little banks are not, in the Board’s judgment, in a posi­ to offset the severe anticompetitive effects hereto­ tion to accommodate any substantial additional fore discussed. credit requirements at the present time. Nor does In the Board’s judgment, the record does not it appear likely that these banks will be able to reflect a need for banking services in the St. Louis accommodate additional substantial loan require­ area which are not presently available through the ments in the foreseeable future unless they take banks located there. On the basis of the record, steps to restructure their loan portfolios. If this is the Board concludes that considerations relating done, there could arise situations in which de­ to the convenience and needs of the area offer serving loan demands of individuals and small only slight support to approval of the application, commercial enterprises might be neglected in and do not “clearly outweigh” the anticompetitive order that the banks could accommodate the large- aspects of Applicant’s proposal. Finally, Appli­ business credit needs. On balance, such occur­ cant’s contention that the slow economic growth rences would not appear to provide a net benefit to of the St. Louis area might be partly due to the the community. local banking structure is not supported by either Applicant points out that First National’s share the evidence of record or by other evidence avail­ of the area’s deposits has declined due to the able to the Board. Prior studies dealing with the exodus of persons and businesses from the down­ determinants of plant location indicate that varia­ town area, the establishment and substantial bles such as the availability of raw materials and growth of a number of new banks in the St. Louis labor, land prices, tax structures, and geographic area in recent years, and the loss of compensating price differentials are far more important factors balances of firms that have moved out of the area determining industrial location than are the avail­ or have shifted their banking business to other ability or size of local banking facilities and cities. This decline, according to Applicant, has services. been further intensified by Missouri’s prohibition Financial and managerial resources and pros­ of branch banking and the intense competition pects. The record indicates that the financial con­ provided by savings and loan associations. In the dition of Applicant and each of its ten subsidiary last 15 years, First National’s share of the market banks is generally satisfactory, and that each is of total deposits has dwindled from 19 per cent soundly managed. The financial condition of First to less than 15, and its share of IPC deposits has National is also considered satisfactory, and it is decreased from 18 to 14 per cent. Applicant urges, staffed by competent and experienced manage­ in effect, that First National should be permitted ment. It was proposed that following Applicant’s to recapture its lost share of the deposit market by acquisition of control of First National, the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULLETIN • JANUARY 1967 present executive management of First National would probably be better positioned to obtain ad­ would become active in the affairs of Applicant. ditional capital for its subsidiary banks is a factor This consideration, although entirely consistent offering some weight toward approval of the ap­ with approval of the application, adds no sub­ plication. However, since Applicant’s system is stantial affirmative support to Applicant’s pro­ presently comprised of ten well-established sub­ posal. sidiary banks, controlling deposits in excess of The earnings and deposit growth of Applicant’s $350 million, it is the Board’s judgment that the St. Louis-area subsidiaries have been satisfactory. proposed acquisition is not essential to Applicant’s Applicant’s prospects and those of its subsidiaries ability to raise additional capital funds for the as presently constituted are also considered satis­ purpose of strengthening the capital structures of factory. Although First National’s loan and de­ its banks as such needs arise. posit growth has been below the national average, On balance, while the evidence relating to the when considering the bank’s size and the nature financial and managerial resources and prospects of the area it serves its prospects are regarded as of Applicant, its subsidiary banks, and First Na­ favorable. There is no reason to believe that its tional is consistent with approval of Applicant’s prospects would be enhanced substantially through proposal, it offers no strong weight toward ap­ affiliation with Applicant’s holding company proval thereof. group. Conclusion. On the basis of all relevant facts Although Applicant’s subsidiary banks are contained in the record, and in the light of the presently in generally satisfactory condition, it ap­ factors set forth in section 3(c) of the Act, it is pears likely that some of them will be in need of the Board’s judgment that the anticompetitive ef­ additional capital in the near future, if their fects of Applicant’s proposal clearly outweigh any present growth rate continues. The fact that Ap­ benefits to the public likely to result therefrom. plicant, following acquisition of First National, Accordingly, the application should be denied. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements DESIGNATIONS AND APPOINTMENTS OF CHAIRMEN AND FEDERAL RESERVE AGENTS, DEPUTY CHAIRMEN, AND DIRECTORS The Board of Governors of the Federal Reserve System announced its appointments at the Federal Reserve Banks and branches, effective January 1, 1967, unless otherwise indicated. Names in CAPITALS indicate NEW appointments; all others are reappointments. Brief data about each of the new appoint­ ments follow the listings. Chairmen and Federal Reserve Agents (One-year term, beginning January 1, 1967) Federal Reserve Bank Boston Erwin D. Canham, Editor in Chief, The Christian Science Monitor, Boston, Massachusetts. New York Everett N. Case, President, Alfred P. Sloan Foundation, New York City. Philadelphia Willis J. Winn, Dean, Wharton School of Finance and Commerce, Univer­ sity of Pennsylvania, Philadelphia, Pennsylvania. Cleveland Joseph B. Hall, Director, Former Chairman of the Board, The Kroger Co., Cincinnati, Ohio. Richmond Edwin Hyde, President, Miller and Rhoads, Inc., Richmond, Virginia. Atlanta Jack Tarver, President, Atlanta Newspapers, Inc., Atlanta, Georgia. Chicago Franklin J. Lunding, Chairman, Finance Committee, Jewel Companies, Inc., Chicago, Illinois. St. Louis Frederic M. Peirce, President, General American Life Insurance Company, St. Louis, Missouri. Minneapolis JOYCE A. SWAN, Executive Vice President and Publisher, Minneapolis Star and Tribune, Minneapolis, Minnesota. Kansas City DOLPH SIMONS, Editor and President, The Lawrence Daily Journal­ World, Lawrence, Kansas. Dallas Carl J. Thomsen, Senior Vice President, Texas Instruments, Incorporated, Dallas, Texas. San Francisco Frederic S. Hirschler, Chairman of the Board and Chief Executive Officer, The Emporium Capwell Company, San Francisco, California. Deputy Chairmen (One-year term, beginning January 1, 1967) Federal Reserve Bank Boston CHARLES W. COLE, Former Ambassador, Pelham Road, Amherst, Massachusetts. New York Kenneth H. Hannan, Executive Vice President, Union Carbide Corporation, New York City. 73 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN • JANUARY 1967 Deputy Chairmen—Continued Philadelphia Bayard L. England, Chairman of the Board, Atlantic City Electric Com­ pany, Atlantic City, New Jersey. Cleveland Logan T. Johnston, Chairman of the Board, Armco Steel Corporation, Middletown, Ohio. Richmond WILSON H. ELKINS, President, University of Maryland, College Park, Maryland. Atlanta Edwin I. Hatch, President, Georgia Power Company, Atlanta, Georgia. Chicago ELVIS J. STAHR, President, Indiana University, Bloomington, Indiana. St. Louis Smith D. Broadbent, Jr., Owner, Broadbent Hybrid Seed Co., Cadiz, Kentucky. Minneapolis Robert F. Leach, Attorney, Oppenheimer, Hodgson, Brown, Wolff & Leach, St. Paul, Minnesota. Kansas City DEAN A. McGEE, Chairman of the Board, Kerr-McGee Corporation, Oklahoma City, Oklahoma. Dallas Max Levine, Retired Chairman of the Board, Foley’s, Houston, Texas. San Francisco S. ALFRED HALGREN, Vice President, Carnation Company, Los An­ geles, California. Federal Reserve Bank Directors 1 (Three-year term, beginning January 1, 1967) Boston HOWARD W. JOHNSON, President, Massachusetts Institute of Tech­ nology, Cambridge, Massachusetts. New York Everett N. Case (see page). Philadelphia Bayard L. England (see above). Cleveland Albert G. Clay, President, Clay Tobacco Company, Mt. Sterling, Kentucky. Richmond ROBERT W. LAWSON, Jr., Lawyer, Steptoe & Johnson, Charleston, West Virginia. Atlanta John A. Hunter, President, Louisiana State University, Baton Rouge, Louisiana. Chicago EMERSON G. HIGDON, President, The Maytag Company, Newton, Iowa. St. Louis William King Self, President, Riverside Industries, Marks, Mississippi. Minneapolis JOYCE A. SWAN (see page). Kansas City WILLARD D. HOSFORD, Jr., Vice President and General Manager, John Deere Company, Omaha, Nebraska. Dallas Max Levine (see above). San Francisco S. ALFRED HALGREN (see above). 1 Each Federal Reserve Bank has a board of direc­ expires at the end of each year. tors consisting of nine members, divided equally into The Board of Governors designates the Chairmen three classes, known as Classes A, B, and C. The six and Deputy Chairmen from among the Class C di­ A and B directors are elected by the member banks, rectors. Each Chairman also serves as the Federal and the three C directors are appointed by the Board Reserve Agent at his Bank. of Governors. One term in each Class of directors Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 75 Federal Reserve Bank Branch Directors 2 (Three-year term unless otherwise indicated) Federal Reserve Bank and Branch New York Buffalo GERALD F. BRITT, President, L-Brooke Farms, Inc., Byron, New York. CARL A. DAY, Executive Vice President, Bausch & Lomb Inc., Rochester, New York (for unexpired portion of term ending December 31, 1968). Cleveland Cincinnati DEL R. CAWTHORNE, Dean, School of Business Adminis­ tration, Miami University, Oxford, Ohio. GRAHAM E. MARX, President and General Manager, The G. A. Gray Company, Cincinnati, Ohio (for unexpired portion of term ending December 31, 1968). Pittsburgh Lawrence E. Walkley, President, Westinghouse Air Brake Company, Pittsburgh, Pennsylvania. Richmond Baltimore Arnold J. Kleff, Jr., Manager, Baltimore Refinery, American Smelting and Refining Company, Baltimore, Maryland. Charlotte James A. Morris, Vice President, Division of Advanced Studies and Research, University of South Carolina, Co­ lumbia, South Carolina. Atlanta Birmingham Mays E. Montgomery, General Manager, Dixie Home Feeds Company, Athens, Alabama. Jacksonville HENRY KING STANFORD, President, University of Miami, Coral Gables, Florida. Nashville James E. Ward, President, Baird-Ward Printing Company, Nashville, Tennessee. New Orleans George B. Blair, General Manager, American Rice Growers Cooperative Association, Lake Charles, Louisiana. Chicago Detroit Max P. Heavenrich, Jr., President and General Manager, Heavenrich Bros. & Company, Saginaw, Michigan. St. Louis Little Rock JAKE HARTZ, Jr., President, Jacob Hartz Seed Co., Inc., Stuttgart, Arkansas. 2 Federal Reserve Bank branches have either five or Bank, and the others are appointed by the Board of seven directors, of whom a majority are appointed by Governors of the Federal Reserve System. the board of directors of the parent Federal Reserve Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN • JANUARY 1967 Louisville Lisle Baker, Jr., Executive Vice President & General Man­ ager, The Courier-Journal & The Louisville Times Com­ pany, Louisville, Kentucky. Memphis WILLIAM L. GILES, President, Mississippi State Univer­ sity, State College, Mississippi. Minneapolis (2-year term) Helena C. G. McClave, President and General Manager, Montana Flour Mills Company, Great Falls, Montana. Kansas City (2-year term) Denver D. R. C. BROWN, President, Aspen Skiing Corporation, Aspen, Colorado. Oklahoma City F. W. ZALOUDEK, Manager, J. I. Case Equipment Agency, Kremlin, Oklahoma. Dallas El Paso C. Robert McNally, Jr., Rancher, Roswell, New Mexico. Houston Geo. T. Morse, Jr., President and General Manager, Peden Iron & Steel Company, Houston, Texas. San Antonio W. A. BELCHER, Veterinarian, Rancher, Brackettville, Texas. San Francisco (2-year term) Los Angeles J. L. ATWOOD, President, North American Aviation, Inc., El Segundo, California. Portland Robert F. Dwyer, Lumberman, Portland, Oregon. Salt Lake City Peter E. Marble, Rancher, Deeth, Nevada. Seattle Robert D. O’Brien, Chairman of the Board and Chief Execu­ tive Officer, Pacific Car and Foundry Company, Renton, Washington. Federal Reserve Bank of Boston term beginning January 1, 1967. Mr. Johnson is CHARLES W. COLE, Amherst, Massachusetts, President, Massachusetts Institute of Technology, who has been serving as a Board-appointed di­ in Cambridge. As a director he succeeds William rector of the Federal Reserve Bank of Boston Webster (see preceding paragraph). since January 1, 1966, was appointed Deputy Federal Reserve Bank of New York Chairman of the Bank for the year 1967. Mr. Cole is a former United States Ambassador to GERALD F. BRITT, Byron, New York, was Chile. As Deputy Chairman he succeeds William appointed a director of the Buffalo Branch of the Webster, Chairman and Chief Executive Officer, Federal Reserve Bank of New York for a three- New England Electric System, Boston, Massa­ year term beginning Jan. 1, 1967. Mr. Britt is chusetts, whose terms as Deputy Chairman and President, L-Brooke Farms, Inc., in Byron. As a as a director expired December 31, 1966. director he succeeds Thomas E. LaMont, farmer, Albion, New York, whose term expired December HOWARD W. JOHNSON, Cambridge, Massa­ 31, 1966. * chusetts, was appointed a Class C director of the Federal Reserve Bank of Boston for a three-year CARL A. DAY, Rochester, New York, was Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 77 appointed a director of the Buffalo Branch of the Federal Reserve Bank of Atlanta Federal Reserve Bank of New York for the un­ HENRY KING STANFORD, Coral Gables, expired portion of a term ending December 31, Florida, was appointed a director of the Jackson­ 1968. Mr. Day is Executive Vice President, Bausch ville Branch of the Federal Reserve Bank of & Lomb Inc., in Rochester. As a director he suc­ Atlanta for a three-year term beginning January 1, ceeds Maurice R. Forman, President, B. Forman 1967. Dr. Stanford is President, University of Company, Inc., Rochester, who resigned effective Miami, in Coral Gables. As a director he succeeds December 31, 1966, to serve as a Class B director J. Ollie Edmunds, President, Stetson University, of the Federal Reserve Bank of New York. DeLand, Florida, whose term expired December Federal Reserve Bank of Cleveland 31, 1966. DEL R. CAWTHORNE, Oxford, Ohio, Federal Reserve Bank of Chicago was appointed a director of the Cincinnati Branch of the Federal Reserve Bank of Cleveland for a ELVIS J. STAHR, Bloomington, Indiana, who three-year term beginning January 1, 1967. Dr. has been serving as a Board-appointed director Cawthorne is Dean, School of Business Adminis­ of the Federal Reserve Bank of Chicago since tration, Miami University, in Oxford. As a di­ January 1, 1966, was appointed Deputy Chairman rector he succeeds Walter C. Langsam, President, of the Bank for the year 1967. Dr. Stahr is Presi­ The University of Cincinnati, Cincinnati, Ohio, dent, Indiana University, in Bloomington. As whose term expired December 31, 1966. Deputy Chairman he succeeds John W. Sheldon, President, Chas. A. Stevens and Company, Chi­ GRAHAM E. MARX, Cincinnati, Ohio, was cago, Illinois, whose terms as Deputy Chairman appointed a director of the Cincinnati Branch of the Federal Reserve Bank of Cleveland for the and as a director expired December 31, 1966. unexpired portion of a term ending December 31, EMERSON G. HIGDON, Newton, Iowa, was ap­ 1968. Mr. Marx is President and General Man­ pointed a Class C director of the Federal Reserve ager, The G. A. Gray Company, in Cincinnati. Bank of Chicago for a three-year term beginning As a director he succeeds R. Stanley Laing, Presi­ dent, The National Cash Register Company, Day­ January 1, 1967. Mr. Higdon is President, The ton, Ohio, who resigned effective December 31, Maytag Company, in Newton. As a director he 1966, to serve as a Class B director of the Federal succeeds John W. Sheldon (see preceding para­ Reserve Bank of Cleveland. graph). Federal Reserve Bank of Richmond Federal Reserve Bank of St. Louis WILSON H. ELKINS, College Park, Maryland, JAKE HARTZ, Jr., Stuttgart, Arkansas, was who has been serving as a Board-appointed di­ appointed a director of the Little Rock Branch rector of the Federal Reserve Bank of Richmond of the Federal Reserve Bank of St. Louis for a since January 1, 1963, was appointed Deputy three-year term beginning January 1, 1967. Mr. Chairman of the Bank for the year 1967. Dr. Hartz is President, Hartz Seed Co., Inc., in Elkins is President, University of Maryland, in Stuttgart. As a director he succeeds Frederick P. College Park. As Deputy Chairman he succeeds Blanks, Planter, Parkdale, Arkansas, whose term William H. Grier, President, Rock Hill Printing expired December 31, 1966. and Finishing Company, Rock Hill, South Caro­ lina, whose terms as deputy chairman and as a WILLIAM L. GILES, State College, Mississippi, director expired December 31, 1966. was appointed a director of the Memphis Branch ROBERT W. LAWSON, Jr., Charleston, West of the Federal Reserve Bank of St. Louis for a Virginia, was appointed a Class C director of the three-year term beginning January 1, 1967. Mr. Federal Reserve Bank of Richmond for a three- Giles is President, Mississippi State University, in year term beginning January 1, 1967. Mr. Lawson State College. As a director he succeeds Edward is an attorney with Steptoe & Johnson, in Charles­ B. LeMaster, President, Edward LeMaster Com­ ton. As a director he succeeds William H. Grier pany, Inc., Memphis, Tennessee, whose term ex­ (see preceding paragraph). pired December 31, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

78 FEDERAL RESERVE BULLETIN • JANUARY 1967 Federal Reserve Bank of Minneapolis year term beginning January 1, 1967. Mr. Brown is President, Aspen Skiing Corporation, in Aspen. JOYCE A. SWAN, Minneapolis, Minnesota, As a director he succeeds R. A. Burghart, Ingle who had been serving as a Class B director of the Land and Cattle Company, Colorado Springs, Federal Reserve Bank of Minneapolis since Janu­ Colorado, whose term expired December 31, 1966. ary 1, 1965, was appointed a Class C director for a three-year term beginning January 1, 1967, and F. W. ZALOUDEK, Kremlin, Oklahoma, was Chairman and Federal Reserve Agent for the year appointed a director of the Oklahoma City Branch 1967. Mr. Swan is Executive Vice President and of the Federal Reserve Bank of Kansas City for Publisher of the Minneapolis Star and Tribune, a two-year term beginning January 1, 1967. Mr. in Minneapolis. As Chairman and as a director Zaloudek is Manager, J. I. Case Equipment he succeeds Judson Bemis, President, Bemis Com­ Agency, in Kremlin. As a director he succeeds pany, Inc., Minneapolis, whose terms as Chair­ Otto C. Barby, attorney and rancher, Beaver, man and as a director expired December 31, 1966. Oklahoma, whose term expired December 31, 1966. Federal Reserve Bank of Kansas City Federal Reserve Bank of Dallas DOLPH SIMONS, Lawrence, Kansas, who has been serving as a Board-appointed director of the W. A. BELCHER, Brackettville, Texas, was ap­ Federal Reserve Bank of Kansas City since Janu­ pointed a director of the San Antonio Branch of ary 1962, and as Deputy Chairman of the Bank the Federal Reserve Bank of Dallas for a threesince January 1963, was appointed Chairman for year term beginning January 1, 1967. Dr. Belcher the year 1967. Mr. Simons is Editor and President, is a rancher and veterinarian in Brackettville. As The Lawrence Daily Journal-World, in Lawrence. a director he succeeds G. C. Hagelstein, President As Chairman he succeeds Homer A. Scott, Vice and General Manager, Union Stock Yards San President and District Manager, Peter Kiewit Antonio, Texas, whose term expired December Sons’ Company, Sheridan, Wyoming, whose terms 31, 1966. as Chairman and as a director expired December Federal Reserve Bank of San Francisco 31, 1966. S. ALFRED HALGREN, Los Angeles, Cali­ DEAN A. McGEE, Oklahoma City, Okla­ fornia, who had been serving as a Board-appointed homa, who has been serving as a Board-appointed director of the Los Angeles Branch since Janu­ director of the Federal Reserve Bank of Kansas ary 1961, was appointed a Class C director of the City since January 1963, was appointed Deputy Federal Reserve Bank of San Francisco for a Chairman of the Bank for the year 1967. Mr. Mc­ three-year term beginning January 1, 1967, and Gee is Chairman of the Board, Kerr-McGee Cor­ was appointed Deputy Chairman of the Bank for poration, in Oklahoma City. As Deputy Chairman the year 1967. Mr. Halgren is Vice President, Car­ he succeeds Dolph Simons (see preceding para­ nation Company, in Los Angeles. As Deputy graph). Chairman and as a director he succeeds John D. WILLARD D. HOSFORD, Jr., Omaha, Ne­ Fredericks, Chairman of the Board and Chief Ex­ braska, was appointed a Class C director of the ecutive Officer, Pacific Clay Products, Los An­ Federal Reserve Bank of Kansas City for a geles, whose terms as Deputy Chairman and as a three-year term beginning January 1, 1967. Mr. director expired December 31, 1966. Hosford is Vice President and General Manager, J. L. ATWOOD, El Segundo, California, was ap­ John Deere Company, in Omaha. As a director pointed a director of the Los Angeles Branch of he succeeds Homer A. Scott (see paragraph the Federal Reserve Bank of San Francisco for a above). two-year term beginning January 1, 1967. Mr. D. R. C. BROWN, Aspen, Colorado, was ap­ Atwood is President, North American Aviation, pointed a director of the Denver Branch of the Inc., in El Segundo. As a director he succeeds Federal Reserve Bank of Kansas City for a two- S. Alfred Halgren (see preceding paragraph). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 79 FEDERAL RESERVE BANK APPOINTMENTS OF BRANCH DIRECTORS ' The Federal Reserve Banks have announced the following appointments of branch directors. The appointments have been made for terms of three years beginning January 1, 1967, except where otherwise indicated. Federal Reserve Bank and Branch New York Buffalo E. Perry Spink, Chairman of the Board, Liberty National Bank and Trust Company, Buffalo, New York. Mr. Spink succeeds Charles W. Millard, Jr., Chairman of the Board, Manufacturers and Traders Trust Company, Buffalo, New York. Cleveland Cincinnati John W. Humphrey, President, The Philip Carey Manu­ facturing Company, Lockland, Cincinnati, Ohio. (Re­ appointed) Robert J. Barth, President, The First National Bank, Dayton, Ohio. Mr. Barth succeeds James B. Pugh, Presi­ dent, The Security Central National Bank of Portsmouth, Ohio. Pittsburgh Charles M. Beeghly, Chairman of the Board and Chief Executive Officer, Jones and Laughlin Steel Corporation, Pittsburgh, Pennsylvania. (Reappointed) Thomas L. Wentling, President, First National Bank of Westmoreland, Greensburg, Pennsylvania. Mr. Wentling succeeds Joseph S. Armstrong, President, The Grove City National Bank, Grove City, Pennsylvania. Richmond Baltimore John P. Sippel, President, The Citizens National Bank, Laurel, Maryland. (Reappointed) Charlotte J. Willis Cantey, President, The Citizens and Southern National Bank of South Carolina, Columbia, South Caro­ lina. Mr. Cantey succeeds W. W. McEachern, Chairman and Chief Executive Officer, The South Carolina National Bank, Greenville, South Carolina. Atlanta Birmingham Will T. Cothran, President, Birmingham Trust National Bank, Birmingham, Alabama. Mr. Cothran succeeds John A. Hand, President, The First National Bank of Birming­ ham, Alabama. 1 Federal Reserve Bank branches have either five or Governors of the Federal Reserve System. The an­ seven directors, of whom a majority are appointed by nouncement of appointments of branch directors made the board of directors of the parent Federal Reserve by the Board of Governors is published on page 75 Bank, and the others are appointed by the Board of of this Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN • JANUARY 1967 Jacksonville L. V. Chappell, President, First National Bank of Clear­ water, Florida. Mr. Chappell succeeds William H. Dial, President, The First National Bank at Orlando, Florida. Nashville Andrew Benedict, Jr., President, First American National Bank, Nashville, Tennessee. Mr. Benedict succeeds Wil­ liam F. Earthman, Jr., President, Commerce Union Bank, Nashville, Tennessee. New Orleans A. L. Gottsche, President, First National Bank, Biloxi, Mis­ sissippi. Mr. Gottsche succeeds L. Y. Foote, Chairman of the Board, First National Bank of Hattiesburg, Mississippi. Chicago Detroit George L. Whyel, President, Genesee Merchants Bank and Trust Company, Flint, Michigan. Mr. Whyel succeeds Franklin H. Moore, President, The Commercial and Savings Bank, St. Clair, Michigan. John H. French, Jr., President, City National Bank of Detroit, Michigan. (Reappointed) St. Louis Little Rock Ellis E. Shelton, President, The First National Bank of Fayetteville, Arkansas. Mr. Shelton succeeds R. M. LaGrone, Jr., President, The Citizens National Bank of Hope, Arkansas. Wayne A. Stone, President, Simmons First National Bank of Pine Bluff, Arkansas. Mr. Stone succeeds Cecil W. Cupp, Chairman of the Board and Chief Executive Officer, Arkansas Bank and Trust Company, Hot Springs, Arkansas. Louisville Paul Chase, President, The Bedford National Bank, Bed­ ford, Indiana. Mr. Chase succeeds Ray A. Barrett, Presi­ dent, The State Bank of Salem, Indiana. Wm. G. Deatherage, President, Planters Bank & Trust Co., Hopkinsville, Kentucky. (Reappointed) Memphis Allen Morgan, President, The First National Bank of Memphis, Tennessee. (Reappointed) Con T. Welch, President, Citizens Bank, Savannah, Ten­ nessee. (Reappointed) Minneapolis (2-year term) Helena Charles H. Brocksmith, President, First Security Bank of Glasgow N. A., Glasgow, Montana. (Reappointed) Glenn H. Larson, President, First State Bank of Thompson Falls, Montana. (Reappointed) Kansas City (2-year term) Denver J. P. Brandenburg, President, The First State Bank of Taos, New Mexico. (Reappointed) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 81 Theodore D. Brown, President, The Security State Bank of Sterling, Colorado. (Reappointed) Oklahoma City Guy L. Berry, Jr., President, The American National Bank and Trust Company, Sapulpa, Oklahoma. (Reappointed) C. M. Crawford, President, First National Bank, Frederick, of Sterling, Colorado. (Reappointed) Omaha W. B. Millard, Jr., Chairman of the Board, Omaha Na­ tional Bank, Omaha, Nebraska. (Reappointed) Dallas El Paso Archie B. Scott, President, The Security State Bank of Pecos, Texas. Mr. Scott succeeds Dick Rogers, President, First National Bank in Alpine, Texas. Robert W. Heyer, President, Southern Arizona Bank & Trust Company, Tucson, Arizona. (Reappointed) Houston W. G. Thornell, President, The First National Bank of Port Arthur, Texas. Mr. Thornell succeeds John E. Gray, President, First Security National Bank of Beaumont, Texas. John E. Whitmore, President, Texas National Bank of Commerce, of Houston, Texas. Mr. Whitmore succeeds J. A. Elkins Jr., Chairman of the Board, First City Na­ tional Bank of Houston, Texas. San Antonio T. C. Frost, Jr., President, The Frost National Bank, of San Antonio, Texas. Mr. Frost succeeds Forrest M. Smith, President, National Bank of Commerce of San Antonio, Texas. J. R. Thornton, Chairman of the Board and President, State Bank and Trust Company, San Marcos, Texas. (Re­ appointed) San Franscio (2-year term) Los Angeles Carl E. Schroeder, President, The First National Bank of Orange County, Orange, California. Mr. Schroeder suc­ ceeds Douglas Shively, President, Citizens State Bank of Santa Paula, California. Harry J. Volk, President, Union Bank, Los Angeles, Cali­ fornia. (Reappointed) Portland Charles F. Adams, President, The Oregon Bank, Portland, Oregon. Mr. Adams succeeds E. M. Flohr, President, The First National Bank of Wallace, Idaho. E. W. Firstenburg, Chairman of the Board and President, First Independent Bank, Vancouver, Washington. (Re­ appointed) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN • JANUARY 1967 Salt Lake City Alan B. Blood, Executive Vice President, Barnes Banking Company, Kaysville, Utah. (Reappointed) Newell B. Dayton, Chairman of the Board, Tracy-Collins Bank and Trust Company, Salt Lake City, Utah. (Reap­ pointed) Seattle A. E. Saunders, President, The Puget Sound National Bank, Tacoma, Washington. Mr. Saunders succeeds M. F. Hastings, President, The First National Bank of Ferndale, Washington. P. H. Stanton, President, Washington Trust Bank, Spokane, Washington. Mr. Stanton succeeds Chas. H. Parks, Spo­ kane and Eastern Advisory Board, Seattle-First National Bank, Spokane, Washington. CHANGES IN THE BOARD’S STAFF Mr. Wernick has a B.A. degree from Brooklyn College and has done graduate work at the Uni­ The Board of Governors has announced the fol­ versity of Wisconsin and American University. lowing appointments, effective January 1, 1967: His Government service began in 1940 and in­ Daniel H. Brill was appointed a Senior Adviser cludes employment with the Bureau of the Cen­ to the Board, continuing as Director of the Divi­ sus, the Works Projects Administration, the Social sion of Research and Statistics, and as Economist Security Board, and the War Manpower Commis­ of the Federal Open Market Committee. Mr. Brill sion. Mr. Wernick was an Economist on the holds an A.B. degree in Economics from New Board’s staff from September 1945 to October York University and an M.A. degree from Colum­ 1951, when he resigned to accept an appointment bia University, and has done further graduate with the National Security Resources Board. Since work at American University. He was employed returning to the Board in May 1953, Mr. Wernick by the Board as an Economist in 1947 and was has served in the National Income, Labor Force, promoted, successively, to Associate Adviser in and Trade Section and has been Chief of the sec­ January 1960, Adviser in October 1962, and tion since March 1966. Director, Division of Research and Statistics, in Jack M. Egertson was appointed an Assistant January 1964. Mr. Brill was the recipient of a Director in the Division of Examinations. Mr. Rockefeller Public Service Award in 1954. Egertson holds a degree of Bachelor of Science James B. Eckert and Murray S. Wernick were in Commerce from the University of Iowa. He appointed as Assistant Advisers in the Division of was employed as an Examiner by the Federal Re­ Research and Statistics. Mr. Eckert will continue serve Bank of Chicago from June 1953 until his to supervise the work of the Banking Section and appointment to the staff of the Board’s Division of Mr. Wernick will continue to supervise the work Examinations as a Review Examiner in April 1962. of the National Income, Labor Force, and Trade In September 1963 Mr. Egertson was promoted Section. to Supervisory Review Examiner, the position he Mr. Eckert received an A.B. degree from Ober-, held at the time of his appointment as an Assistant lin College, an M.A. degree from the University Director. of Cincinnati, and a Ph.D. from Cornell Univer­ RESIGNATION OF DIRECTOR sity. He joined the Board’s staff in 1953 as an Economist in the Banking Section, and has held Mr. Ralph K. Gottshall, Chairman of the Board, the title of Chief of that Section since December Atlas Chemical Industries, Inc., Wilmington, Dela­ 1954. Prior to his Board employment, Mr. Eckert ware, who had served as a Class B director of the worked for the Office of Price Administration, the Federal Reserve Bank of Philadelphia since Jan­ Bureau of the Budget, and the Economic Stabili­ uary 1, 1963, resigned effective December 31, zation Agency. 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 83 APPOINTMENT OF DIRECTOR million; and additions to surplus accounts, $19 On January 17, 1967, the Board of Governors an­ million. nounced the appointment of Henry Y. Kleinkauf, Under the policy adopted by the Board of Gov­ as a director of the Omaha Branch of the Federal ernors at the end of 1964, all net earnings after Reserve Bank of Kansas City to serve for the the statutory dividend to member banks and ad­ remainder of the term expiring December 31, ditions to surplus to bring it to the level of paid-in 1968. Mr. Kleinkauf is President, Natkin & capital were paid to the U. S. Treasury as interest Company, Omaha, Nebraska. As a director of the on Federal Reserve notes. Omaha Branch he succeeds Clifford Morris Hard­ Compared with 1965, gross earnings were up in, Chancellor, The University of Nebraska, Lin­ $349 million, or 22 per cent. The principal in­ coln, Nebraska. creases in earnings were as follows: on U.S. Gov­ ernment securities, $329 million; on discounts and TERMINATION OF SPECIAL DISCOUNT advances, $9 million; and on foreign currencies, ARRANGEMENTS $8 million. On December 27, 1966, the Board of Governors of Expenses in 1966 were up $3 million, about 1.5 the Federal Reserve System issued the following per cent, and dividends, $1 million. statement: “On September 1, 1966, the Presidents of the Federal Reserve Banks sent a letter to all member Item 1966 1965 banks with respect to the use of the discount win­ Thousands of dollars dow. Since then credit conditions have changed, the expansion of business loans has been reduced Current earnings...................................... .. 1,908,500 1,559,484 Current expenses.......................................... 207,401 204,290 to a more moderate rate, and banks no longer are Current net earnings..................... 1,701,099 1,355,194 unloading securities in unreceptive markets. Con­ Net addition to current net earnings *..... 996 1,022 sequently, the purposes of that letter having been Net earnings before payments to U.S. served—and served well, thanks to the cooperative Treasury.................................................... 1,702,095 1,356,215 Dividends paid............................................ 33,696 32,352 efforts of member banks—the Board of Governors Payments to U.S. Treasury (interest on F.R. notes)........................... 1,649,455 1,296,810 has authorized the Presidents of the Reserve Transferred to surplus................................. 18,944 27,054 Banks to advise member banks in their districts that the special discount arrangements announced 1 Includes net losses on sales of U.S. Govt, securities of $2,476,000 in 1966 and of $9,000 in 1965. in the September 1 letter are terminated.” EARNINGS AND EXPENSES OF THE ADMISSION OF STATE BANK TO FEDERAL RESERVE BANKS IN 1966 MEMBERSHIP IN THE FEDERAL RESERVE AND 1965 SYSTEM Preliminary figures received from the Federal Re­ The following bank was admitted to membership serve Banks indicate that during 1966 their gross in the Federal Reserve System during the period earnings amounted to $1,908 million. Distribution November 16, 1966 through December 15, 1966: of gross earnings was as follows: expenses, $207 million; payments to the U.S. Treasury, $1,649 Maine million; statutory dividends to member banks, $33 Augusta..................First Maine Trust Company Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication January 17 Industrial production was unchanged in Decem­ record rates while output of freight and passenger ber, while retail sales declined. Nonfarm employ­ equipment continued to advance. Production of ment continued to rise, but the average workweek iron and steel and construction materials declined in manufacturing declined somwhat further. Bank further, while output of nondurable materials in­ credit, time deposits, the money supply, and re­ creased. quired and fotal reserves increased. Between mid­ EMPLOYMENT December and mid-January interest rates were Nonfarm employment showed continued lower on balance and common stock prices in­ strength in December, rising by 250,000 to 65.1 creased slightly. million. Manufacturing employment advanced moderately, with most of the gains in the dur­ INDUSTRIAL PRODUCTION able goods sector. Construction employment rose Industrial production in December was 158.7 in December following a substantial decline from per cent of the 1957-59 average, virtually un­ March to October. Government and services em­ changed from the November level of 158.6 per ployment increased further. The average work­ cent and 6.5 per cent above a year earlier. In week in manufacturing, however, declined to 41.0 1966, industrial output was 9 per cent above 1965. hours, .3 hours shorter than in the previous Auto assemblies in December changed little month and also a year ago. The unemployment from the November rate. Schedules for January rate was 3.8 per cent—virtually unchanged from indicate a decline in output of about 9 per cent 3.7 per cent in November. as auto sales have declined and dealers’ stocks have remained at advanced levels. Production of some DISTRIBUTION household goods declined in December, but out­ Retail sales declined about 1 per cent in put of color television sets increased further. December, while the November level—which Over-all output of consumer nondurable goods originally had shown a decline—has been revised was about unchanged. Production of industrial upward to show a slight rise from October. The and commercial equipment was maintained at decline from November to December was mainly in sales at nondurable goods stores, although unit sales of new domestic autos were also down. For the fourth quarter as a whole, retail sales were about unchanged from the third quarter. Total retail sales for the year 1966 were 7 per cent larger than in 1965, but in December the yearover-year dollar gain was only 2 per cent. COMMODITY PRICES The wholesale commodity price index was unchanged between mid-November and mid­ December as industrial commodities showed no change and farm and food products declined only slightly further. In December, the total index was up from a year ago by 1.7 per cent, with indus­ trial commodities up by 2.2 per cent and farm products and processed foods by only 0.2 per cent. Since mid-December prices of livestock and 84 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 85 some other foodstuffs have risen seasonally. The borrowings declined substantially but excess re­ industrial average also has edged upward, with serves also declined somewhat. As a result, net increases effected for aluminum, copper and borrowed reserves declined further to an average copper products, steel tubing, a number of chemi­ of about $190 million over the four statement cals, and some finished products. weeks ending December 28, their lowest level since early in the year. Required reserves in­ BANK CREDIT, DEPOSITS, AND RESERVES creased somewhat following steady declines since Commercial bank credit increased $2.3 billion midsummer. Total reserves also rose. in December following a small rise in November and declines in the two previous months. The SECURITY MARKETS December expansion was associated in large part Yields on U.S. Government securities in all with a substantial increase in holdings of U.S. maturity sectors declined appreciably further be­ Government securities and security loans. Other tween mid-December and mid-January. Treasury loans showed a small rise and holdings of other bill rates also fell substantially over the same investments were about unchanged. period, with the 3-month bill bid at around 4.70 The money supply increased $1.0 billion in per cent at midmonth. December, nearly offsetting the declines of the Yields on corporate and municipal bonds were previous two months. Time and savings deposits increased $1.1 billion in December after showing stable during the last half of December but turned only small growth since August. The December down significantly in January. Common stock rise was associated in part with renewed bank prices declined moderately in heavy trading in late sales of negotiable CD’s following heavy run-offs December, but have since increased slightly above in the September-November period. Member bank their December levels. PRICES INTEREST RATES Discount rate, range or level for all F.R. Banks. Weekly Bureau of Labor Statistics indexes. Latest figures shown for average market yields for U.S. Govt, bonds maturing in 10 consumer prices, November; for wholesale prices, December. years or more and for 90-day Treasury bills. Latest figures shown, week ending Jan. 13. Digitized for FRASER https://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 for seasonal variation c Corrected IPC Individuals, partnerships, and corpora­ p Preliminary tions r Revised SMSA Standard metropolitan statistical area rp Revised preliminary A Assets i, n, L Liabilities III, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par­ S.A. Monthly (or quarterly) figures adjusted ticular unit (e.g., less than 500,000 for seasonal variation when the unit is millions) . . . (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 in­ clude 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.................................J.a..n.... .....1..9.6..7.. ...148-57 Banking and monetary statistics, 1965 ............. Mar. 1966 414-23 June 1966 901-04 Banks and branches, number of, by class and Semiannually State.............................................................. Apr. 1966 600-01 Banking offices: Analysis of changes in number of................ Aug. 1966 1248 Flow of funds (assets and liabilities).................. Oct. 1966 15 36-46 On, and not on, Federal Reserve Par List number of................................................. Aug. 1966 1249 Income and expenses: Federal Reserve Banks............................... Feb. 1966 270-71 Member banks: Annually Calendar year........................................... June 1966 892-900 Operating ratios.......................................... Apr. 1966 602-04 Bank holding companies: Insured commercial banks.............................. July 1966 1046 List of, Dec. 31, 1965.................................. June 1966 905 Banking offices and deposits of group banks, Stock exchange firms, detailed debit and credit Dec. 31, 1965................................................ Aug. 1966 1250 balances........................................................ Sept. 1966 1408 86 Digitized for FRASER https://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............ 88 Reserve Bank discount rates; margin requirements; reserve requirements....................... 93 Bank deposits; open market transactions; Federal Reserve Banks..................................... 95 Bank debits; currency in circulation .................................................................................... 98 Money supply and bank reserves; banks and the monetary system................................. 100 Commercial and mutual savings banks, by classes ........................................................... 104 Commercial banks ........................................................................................................ 105 Weekly reporting banks.......................................................................................................... 108 Business loans ...................................................................................................................... 112 Interest rates .......................................................................................................................... 113 Security prices; stock market credit .................................................................................... 114 Open market paper; savings institutions ......................................................................... 115 Federally sponsored credit agencies.................................................................................... 117 Federal finance........................................................................................................................ 118 U.S. Government securities................................................................................................... 120 Security issues.......................................................................................................................... 124 Business finance .................................................................................................................. 126 Real estate credit .................................................................................................................. 128 Consumer credit .......................................................................................... 132 Industrial production ............................................................................................................. 136 Business activity; construction.............................................................................................. 140 Employment and earnings ..................................................................................................... 142 Wholesale and consumer prices............................................................................................ 144 National product and income series...................................................................................... 146 Flow of funds.......................................................................................................................... 148 Guide to tabular presentation ............................................................................................... 86 Index to statistical tables ..................................................................................................... 185 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 remain­ reports made to the Board; production indexes ing data are obtained largely from other are compiled by the Board on the basis of data sources. For many of the banking and monetary collected by other agencies; and flow of funds series back data and descriptive text are avail­ figures are compiled on the basis of materials able in Banking and Monetary Statistics and from a combination of sources, including the its Supplements (see list of publications at end Board. Figures for gold stock, currency. Fed- of the Bulletin). 87 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

88 BANK RESERVES AND RELATED ITEMS JANUARY 1967 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F. R. Bank credit outstanding Deposits, other than member bank Member bank P d e o a ri r t o e d U To .S ta . l Go B v r o o i t g u u , h g t s ­ t h e t c u 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 1 ­ ­ c v D o a a a n u n d i c n s d ­ e ­ t s s Float 2 t T al o ­ 3 s G to o c ld k T r s c o e u t i r u a n n u e r n r g c y t a ­ ­ y d s ­ ­ r c C t e c u i i n o i u n l r c a n r ­ y ­ ­ T h c i r u n o a e r g s l a y d h s s ­ ­ T u re w ry a i s t ­ h r e F F e s . i e R o g r r v n . ­ e B s, a O n t k h s er 2 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 c r C s e o a e n n i u r n c d v r y ­ e 4 s Total Averages ol daily figures 1929—June.. 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 .......... 2,314 1933—June.. 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2,211 1939—Dec... 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—Dec... 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1 >531 292 12,812 12,812 1945—Dec... 23,708 23,708 381 652 24,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16,027 1950—Dec... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1955—Dec. 24,602 24,318 284 840 1,389 26,853 21,689 5,008 31,265 777 434 459 394 983 19,240 19,240 1956—Dec. 24,765 24,498 267 706 1,633 27,156 21,942 5,064 31,775 772 463 372 247 998 19,535 19,535 1957—Dec. 23,982 23,615 367 716 1,443 26,186 22,769 5,144 31,932 768 385 345 186 1,063 19.420 19,420 1958—Dec. 26,312 26,216 96 564 1,49628,412 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 1,66529,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 2,595 19,283 1961—Dec. 29,098 29,061 37 152 1,921 31,217 16,929 5,587 33,954 422 514 229 244 1,112 17,259 2,859 20,118 1962—Dec. 30,546 30,474 72 305 2,298 33,218 15,978 5,561 35,281 398 587 222 290 1,048 16,932 3,108 20,040 1963—Dec. 33,729 33,626 103 360 2,43436,610 15,562 5,583 37,603 389 879 160 206 1,215 17,303 3,443 20,746 1964—Dec. 37,126 36,895 231 266 2,423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964 3,645 21,609 1965—Dec. 40,885 40,772 113 490 2,34943,853 13,799 5,565 42,206 808 683 154 231 389 18,747 3,972 22,719 1966—Jan.. 40,626 40,451 175 427 2,253 43,449 13,733 5,608 41,588 819 700 160 245 465 18,812 3,938 22,750 Feb.. 40,635 40,437 198 498 1 ,87043,116 13,734 5,653 41,224 834 798 140 234 789 18,482 3,751 22,233 Mar. 40,398 40,387 11 571 1,82442,943 13,700 5,700 41,394 861 479 158 291 746 18,414 3,746 22,160 Apr. 40,629 40,587 42 647 1,93443,339 13,632 5,768 41,671 941 311 148 398 505 18,766 3,762 22,528 May 41,129 41,012 117 743 1,87743,891 13,565 5,838 41,858 968 670 138 386 512 18,762 3,725 22,487 June 41,672 41,653 19 685 1,93644,498 13,500 5,916 42,296 1,033 824 152 394 535 18,679 3,855 22,534 July. 42,221 42,210 11 767 2,62445,737 13,415 5,971 42,825 1,066 1 ,059 196 419 338 19,220 3,870 23,090 Aug. 42,280 42,130 150 730 2,29045,348 13,311 6,019 42,884 1,067 1,107 135 409 316 18,759 3,896 22,655 Sept. 42,735 42,725 10 774 2,07445,631 13,258 6,072 42,991 1,078 869 131 407 217 19,268 3,972 23,240 Oct.. 42,837 42,817 20 749 1,94945,604 13,257 6,138 43,122 1,121 758 145 439 5 19,409 3,924 23,333 Nov. 43,347 43,165 182 626 2,02946,087 13,251 6,214 43,748 1,173 682 152 429 143 19,225 4,026 23,251 Dec. 43,760 43,274 486 570 2,38346,864*13,158 *6,283 "44,577 Pl,193 291 164 429 83 19,568 >>4,257*23,835 Week ending—■ 1965 Dec. 40,535 40,535 567 1 ,80243,018 13,808 5,544 41 ,734 818 761 159 235 412 18,253 3,939 22,192 8 41,014 40,911 103 514 1,86043,519 13,809 5,548 41,929 816 670 155 225 460 18,622 3,712 22,334 15 40,879 40,824 55 518 2,053 43,571 13,808 5,556 42,260 803 637 158 225 410 18,442 4,021 22,463 22 40,824 40,802 22 247 2,87644,066 13,809 5,572 42,367 802 720 146 230 359 18,822 3,982 22,804 29 40,852 40,631 221 592 2,713 44,289 13,786 5,585 42,348 817 687 159 226 349 19,074 4,006 23,080 1966 Jan. 5. 41,030 40,607 423 600 2,36644,181 13,733 5,583 42,053 788 612 166 295 346 19,237 4,033 23,270 12. 41,145 40,823 322 613 2,39044,309 13,734 5,597 41,963 804 681 178 232 490 19,291 3,941 23,232 19. 40,333 40,333 242 2,441 43,128 13,733 5,609 41,618 827 708 136 242 479 18,459 4,008 22,467 26. 40,210 40,210 .......... 374 2,085 42,816 13,733 5,615 41,237 839 746 144 231 481 18,485 3,966 22.451 Feb. 2. 40,548 40,299 249 439 1,90743,005 13,732 5,635 41,085 830 834 178 235 540 18,669 3,869 22,538 9. 41,117 40,708 409 523 1,671 43,425 13,734 5,646 41,196 833 879 152 235 713 18,796 3,527 22,323 16. 40,809 40,542 267 473 1,73943,130 13,733 5,647 41,283 833 910 135 236 745 18,368 3,785 22,153 23. 40,224 40,224 .......... 540 2,041 42,912 13,733 5,660 41,219 840 681 129 232 876 18,329 3,777 22,106 Mar. 2.. 40,152 40,152 484 1,97442,731 13,733 5,671 41,235 829 645 135 236 871 18,185 3,931 22,116 9.. 40,425 40,425 634 1,77942,987 13,733 5,677 41,319 829 429 157 241 868 18,553 3,492 22,045 16.. 40,399 40,352 47 556 1,741 42,848 13,733 5,685 41,480 822 346 180 247 813 18,378 3,743 22,121 23.. 40,311 40,311 623 2,08743,193 13,704 5,709 41,459 863 506 140 303 679 18,656 3,740 22,396 30.. 40,505 40,505 .......... 528 1,741 42,916 13,632 5,734 41,348 936 560 135 376 610 18,316 3,860 22,176 Apr. 6.. 40,924 40,779 145 643 1,637 43,325 13,633 5,739 41,510 930 309 173 387 607 18,782 3,576 22,358 13.. 40,821 40,787 34 623 1,86943,431 13,633 5,760 41,864 933 138 158 395 558 18,778 3,624 22,402 20.. 40,301 40,301 706 2,17643,293 13,632 5,776 41,768 951 268 146 406 448 18,713 3,914 22,627 27.. 40,446 40,446 .......... 666 1,98843,254 13,632 5,781 41,563 949 466 133 404 454 18,699 3,916 22,615 May 4 40,837 40,755 82 637 1,92843,560 13,633 5,797 41,605 935 510 157 400 417 18,966 3,769 22,735 41,239 40,940 299 702 1,77743,831 13,618 5,819 41,834 941 517 131 391 411 19,044 3,549 22,593 18 40,947 40,812 135 685 2,02543,771 13,532 5,833 41,924 966 591 137 384 436 18,700 3,775 22,475 25 41,015 41,015 .......... 674 1,98343,827 13,532 5,860 41,859 988 855 130 375 640 18,372 3,869 22,241 June 41,457 41,457 832 1,67044,139 13,534 5,869 41,988 995 839 149 393 633 18,545 3,823 22,368 8 41,682 41,661 21 567 1,765 44,230 13,533 5,888 42,226 992 737 146 392 617 18,542 3,662 22,204 15 41,659 41,601 58 800 1 ,80944,450 13,533 5,911 42,356 1,018 909 136 388 567 18,518 3,812 22,330 22 41,528 41,528 697 2,25444,665 13,505 5,931 42,327 1 ,052 799 155 394 499 18,876 3,843 22,719 29 41,795 41,795 .......... 776 1,97944,783 13,432 5,933 42,251 1,076 855 152 390 472 18,952 3,984 22,936 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 BANK RESERVES AND RELATED ITEMS 89 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other Pe o ri r o d U.S. Govt, securities1 T u re ry as ­ r C en u c r y ­ Treas­ th w a i n th m F r e e .R m se . b rv B e e r a s n , b k a s nk Other Me r m es b e e rv r e b s ank date Total B r o o ig u u h t g ­ t ht R a m c g h e e r p a n e s u e t e s r ­ ­ c v D o a a a n u n d i c s n d ­ e ­ ts s Float 2 t T al o ­ 3 s G to o c ld k s r o c e i t n a u u n n g r c t ­ ­ d y ­ c t c u i i o i n l r a n ­ ­ h c i u o n a r g l s y d h s ­ T u re ry as­ F ei o g r n ­ Other 2 c F o a . u c R n ­ . t s B W F a R n it k h s 1 c r C o a e n i n u n d c r y ­ 4 Total Averages of daily figures Week ending—• 1966 July 6............. 42,585 42,581 4 832 2,00645,659 13,434 5,965 42,637 1,065 710 208 428 454 19,554 3,619 23,173 13............. 42,656 42,653 3 818 2,43046,085 13,435 5,972 43,019 1,066 1,022 147 418 437 19,383 3,869 23,252 20............. 41,684 41,684 631 3,22545,615 13,434 5,966 42,921 1,062 1,156 160 433 332 18,951 3^84 22,935 27............. 41,873 41,873 682 2,77545,396 13,406 5,969 42,747 1,076 1,216 144 400 270 18,916 4,031 22,947 Aug. 3............. 42,445 42,287 158 778 2,43945,713 13,332 5,993 42,752 1,052 1,286 319 420 168 19,042 3,945 22,987 10............. 42,583 42,231 352 786 2,32445,743 13,333 6,003 42,908 1,047 1,105 139 404 283 19,194 3,684 22,878 17............. 42,003 41,809 194 731 2,52445,305 13,332 6,014 43,000 1,069 1,065 131 414 265 18,708 3,898 22,606 24............. 41,813 41,813 720 2,541 45,121 13,312 6,030 42,894 1,081 1,056 126 401 386 18,519 3,935 22,454 31.............. 42,597 42,597 693 1,77545,114 13,258 6,041 42,771 1,079 1,083 138 412 352 18,578 4,063 22,641 Sept. 7............. 42,977 42,977 751 1,75445,531 13,258 6,050 42,982 1,063 988 127 410 286 18,981 3,688 22,669 14............. 42,936 42,895 41 893 1 ,91445,791 13,258 6,069 43,228 1,071 835 125 409 234 19,218 4,013 23,231 21.............. 42,525 42,525 782 2,48545,841 13,257 6,074 43,000 1,084 622 128 403 168 19,767 3,984 23,751 28............. 42,493 42,493 662 2,19745,399 13,257 6,086 42.804 1,092 1,032 138 40! 218 19,056 4,077 23,133 Oct. 5.............. 42,999 42,989 10 843 1,82545,722 13,258 6,106 42,878 1,091 693 146 442 88 19,748 3,866 23,614 12............. 42,969 42,969 947 1,88045,891 13,258 6,121 43,228 1,099 680 157 445 92 19,570 3,788 23,358 19.............. 42,521 42,521 805 2,155 45,532 13,256 6,145 43,267 1,120 706 148 439 -56 19,309 4,009 23,318 26.............. 42,794 42,715 79 533 2,043 45,440 13,256 6,154 43,088 1,138 924 127 432 -45 19,187 4,080 23,267 Nov. 2............. 43,019 42,958 61 610 1,77045,472 13,257 6,167 43,089 1,154 805 156 435 -33 19,290 4,090 23,380 9 43,474 43,281 193 661 1,89046,100 13,258 6,185 43,406 1,163 740 162 435 17 19,620 3,735 23,355 16............. 43,415 45,265 150 726 1,951 46,165 13,259 6,212 43,765 1,168 714 130 452 59 19,347 4,007 23,354 23............. 42,977 42,959 18 455 2,45045,967 13,257 6,230 43,876 1,180 707 148 409 258 18,875 4,048 22,923 30............ 43,527 43,171 356 650 1,90246,191 13,230 6,241 44,106 1,184 556 162 417 279 18,958 4,267 23,226 Dec. 7............. 43,792 43,312 480 462 2,01446,399 13,158 6,252 44,210 1,188 452 162 415 255 19,126 4,062 23,188 14............. 43,596 43,264 332 668 2,03246,407 13,158 6,283 44,603 1,199 127 181 412 63 19,262 ”4,250 ”23,512 21.......... : 43,492 43,126 366 485 2,671 46,808 13,158 6,291 44,675 1,188 203 155 416 32 19,588 ”4,287 ”23,875 28............. 43,947 43,263 684 559 2,777 47,468 13,159 6,297 44,773 1,191 352 154 425 52 19,977 ”4,199 ”24,176 End of month 1966 Oct...................... 42,975 42,975 410 2,044 45,501 13,257 6,182 43,113 1,144 809 194 426 -84 19,338 3,785 23,123 Nov................... 43,912 43,290 622 458 1,78046,281 13,159 6,244 44,246 1,151 299 196 399 301 19,093 4,871 23,964 Dec..................... 44,316 43,655 661 173 2,49547,177 ”13,159 ”6,309 ^44,631 ”1,203 416 174 588 -147 19,779 ”4,286 ”24,065 Wednesday 1966 Oct. 5............. 43,330 43,262 68 844 1,75546,029 13,259 6,112 43,081 1,103 506 132 478 104 19,995 3,963 23,958 12............. 42,833 42,833 458 1,537 44,921 13,259 6,122 43,376 1,117 718 134 452 41 18,463 4,294 22,757 19.............. 42,296 42,296 810 2,06245,219 13,259 6,149 43,237 1,133 868 138 433 -63 18,881 4,390 23,271 26.............. 42,764 42,613 151 597 1,52444,974 13,259 6,163 43,111 1,156 840 141 428 -46 18,766 4,528 23,294 Nov. 2............. 43,549 43,247 302 845 1 ,71046,174 13,259 6,166 43,224 1,159 714 175 430 11 19,886 4,231 24,117 9............. 43,281 43,281 552 1,141 45,044 13,259 6,194 43,717 1,172 791 148 434 18,235 4,129 22,364 16............. 43,234 43,234 548 2,13545,990 13,259 6,214 43,833 1,180 821 139 416 251 18,823 4,389 23.212 23.............. 42,962 42,833 129 392 1,65545,092 13,259 6,238 44,076 1,189 525 146 404 256 17,993 4,517 22,510 30............. 43,912 43,290 622 458 1,78046,281 13,159 6,244 44,246 1,151 299 196 399 301 19,093 4,871 23,964 Dec. 7.............. 43,704 43,342 362 358 1,66345,851 13,159 6,255 44,485 1,200 197 205 406 173 18,598 4,401 22,999 14.............. 43,561 43,192 369 347 2,06446,083 13,159 6,288 44,744 1,215 273 166 414 20 18,698 ”4,870 »23,568 21.............. 43,943 43,251 692 304 2,751 47,188 13,159 6,293 44,809 1,201 312 152 409 37 19,720 ”4,715 ”24,435 28............. 43,986 43,263 723 957 2,42347,548 13,159 6,301 44,952 1,196 249 168 415 58 19,970 ”4,975 ”24,945 1 U.S. Govt, securities include Federal agency obligations. on Wed. and end-of-month dates, see subsequent tables on F.R. Banks. 2 Beginning with 1960 reflects a minor change in concept; see Feb. See also note 2. 1961 Bulletin, p. 164. < Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 3 Includes industrial loans and acceptances, when held. (Industrial thereafter. Beginning with Jan. 1963, figures are estimated except for loan program discontinued Aug. 21, 1959.) For holdings of acceptances weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

90 BANK RESERVES AND RELATED ITEMS JANUARY 1967 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks AU member banks New York City City of Chicago Period Reserves Bor­ Reserves Bpr- Reserves Bor­ T h o e t l a d l qu R ir e e ­ d Excess B r F i o a n a . n w R g t k s . ­ s s F e r r r e v e ­ e e s T h o e t ld al qu R i e re ­ d Excess B r F i o a n a . n w R g t k s . ­ s s F e r r r e v e ­ e e s T h o el t d al qu R ir e e ­ d Excess B r F i o a n a . n w R g t k s . ­ s s F e r r r e v e ­ e e s 1929—June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 1 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 1,011 13 6 7 1950—Dec. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1955—Dec. 19,240 18,646 594 839 -245 4,432 4,397 35 197 -162 1,166 1,164 2 85 -83 1956—Dec. 19,535 18,883 652 688 -36 4,448 4,392 57 147 -91 1,149 1,138 12 97 -86 1957—Dec. 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 1,136 1,127 8 85 -77 1958—Dec. 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 1,077 1 ,070 7 39 -31 1959—Dec. 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 1,038 1,038 104 -104 I960—Dec. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1961—Dec. 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962—Dec. 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 1,042 1,035 7 18 -11 1963—Dec. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 26 -21 1964—Dec. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1 ,083 1,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 Lil -70 1,143 1,128 15 23 -8 1966—Jan.. 22,750 22,392 358 402 -44 4,313 4,278 35 109 -74 1,112 1,116 -4 45 -49 Feb. 22,233 21,862 371 478 -107 4,168 4,150 18 93 -75 1,092 1,088 4 30 -26 Mar. 22,160 21,855 305 551 -246 4,194 4,188 6 43 -37 1,102 1 ,099 3 65 -62 Apr. 22,528 22,170 358 626 -268 4,326 4,270 56 85 -29 1,128 1,123 5 38 -33 May 22,487 22,117 370 722 -352 4,276 4,230 46 86 -40 1,149 1,144 5 8 -3 June 22,534 22,212 322 674 -352 4,257 4,290 -33 110 -143 1,116 1,118 -2 10 -12 July. 23,090 22,682 408 766 -358 4,437 4,350 87 93 -6 1,142 1,130 12 66 -54 Aug. 22,655 22,317 338 728 -390 4,224 4,210 14 40 -26 1,098 1,094 4 28 -24 Sept. 23,240 22,842 398 766 -368 4,454 4,424 30 123 -93 1,122 1,117 5 69 -64 Oct. 23,333 23,031 302 733 -431 4,438 4,435 3 127 -124 1,112 1,109 3 98 -95 Nov. *23,251 *22,859 *392 611 *-219 *4,338 *4,299 *40 111 *-71 *1,079 *1,077 *2 26 »-24 Dec. .......... *23,823 *23,425 *398 557 *-159 p4,583 *4,556 *27 122 *-95 *1,119 *1,115 »4 54 *-50 Week ending— 1965—Dec. 1 . . .. 22,192 21,767 425 534 -109 4,094 4,029 65 110 -45 1,136 1,138 -2 -2 8 . . . . 22,334 21,873 461 478 -17 4,187 4,105 82 39 43 1,144 1,125 19 19 15. . .. 22,463 21,898 565 486 79 4,183 4,135 48 124 -76 1,089 1 ,080 9 37 -28 22... . 22,804 22,570 234 218 16 4,402 4,374 28 83 -55 1,147 1,150 -3 1 -4 29.... 23,080 22,617 463 546 -83 4,399 4,383 16 138 -122 1,159 1,146 13 44 -31 1966—July 6.... 23,173 22,823 350 827 -477 4,596 4,482 114 167 -54 1,175 1,167 8 107 -100 13. ... 23,252 22,528 724 818 -94 4,291 4,259 31 120 -89 1,126 1,118 8 129 -121 20.... 22,935 22,764 171 631 -460 4,465 4,360 105 104 1 1,140 1,128 12 30 -18 27.... 22,947 22,671 276 680 -404 4,324 4,328 -4 16 -20 1,113 1,119 -6 16 -22 Aug. 3. . .. 22,987 22,634 353 778 -425 4,347 4,331 16 20 — 4 1,129 1,117 12 27 -15 10.... 22,878 22,417 461 782 -321 4,239 4,230 9 133 -124 1,097 1,089 8 25 -17 17.... 22,606 22,329 277 730 -453 4,224 4,185 39 39 1,101 1,094 7 20 -13 24.... 22,454 22,080 374 719 -345 4,143 4,137 6 2 4 1,084 1 ,083 1 29 -28 31.... 22,641 22,277 364 691 -327 4,266 4,220 46 46 1,097 1,093 4 31 -27 Sept. 7.... 22,669 22,332 337 749 -412 4,249 4,237 12 21 -9 1,098 1,101 -3 61 -64 14.... 23,231 22,729 502 888 -386 4,438 4,350 88 110 -22 1,119 1,103 16 135 -119 21.... 23,751 23,159 592 771 -179 4,528 4,528 159 -159 1,141 1,141 46 -46 28.... 23,133 23,066 67 650 -583 4,578 4,539 39 161 -122 1,124 1,123 1 48 -47 Oct. 5.... 23,614 23,300 314 828 -514 4,653 4,640 13 274 -261 1,147 1,144 3 30 -27 12.... 23,358 22,945 413 928 -515 4,389 4,355 34 234 -200 1,073 1,084 -11 248 -259 19.... 23,318 22,829 489 790 -301 4,306 4,302 4 99 -95 1,093 1,080 13 136 -123 26.... 23,267 23,120 147 518 -371 4,514 4,501 13 8 5 1,139 1,130 9 18 -9 Nov. 2... . 23,380 23,101 279 594 -315 4,471 4,463 8 43 -35 1,130 1,127 3 12 -9 9. ... 23,355 22,977 378 646 -268 4,349 4,326 23 213 -190 1,095 1,092 3 43 -40 16.... 23,354 22,807 547 711 -164 4,235 4,206 29 152 -123 1,095 1,092 3 26 -23 23... . 22,923 22,739 184 439 -255 4,261 4,233 28 28 1,067 1,062 5 13 -8 30.... 23,226 22,766 460 636 -176 4,361 4,345 16 90 -74 1,063 1,059 4 26 -22 Dec. 7. ... 23,188 23,007 181 449 -268 4,454 4,432 22 22 1,073 1,073 20 -20 14.... *23,512 *22,994 *518 647 *-129 *4,377 *4,363 »I4 122 *-108 *1,076 *1,070 *7 79 *-72 21 .. .. *23,875 *23,679 *196 472 *-276 *4,700 *4,656 *44 75 *-31 sl,158 *1,147 *11 9 *2 28... . *24,176*23,721 *455 548 *-93 *4,680 *4,673 *6 183 *-177 *1,136 *1,131 *5 63 *-58 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 BANK RESERVES AND RELATED ITEMS 91 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow­ Reserves Borrow­ ings 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 l a d l Required Excess B F a . n R k . s reserves 1929—June............................. 761 749 12 409 -397 632 610 22 327 305 648 528 120 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 t ’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 oil 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 5/19 430 162 268 1959—Dec.............................. 7,954 7,912 41 490 -449 6 020 5,569 450 213 237 1960—Dec.............................. 7,950 7,851 100 20 80 6 689 6,066 623 40 583 1961—Dec.............................. 8,367 8,308 59 39 20 6 931 6,429 502 31 471 1962—Dec.............................. 8,178 8,100 78 130 -52 6 956 6,515 442 48 394 1963—Dec.............................. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 1964—Dec.............................. 8,735 8’713 22 125 -103 7,707 7,337 370 55 315 1965—Dec.............................. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 1966—Jan............................... 9,033 9,010 23 164 -141 8,291 7,988 303 84 219 Feb.............................. 8,827 8,771 56 204 -148 8,146 7,852 294 151 143 8,768 8,743 25 243 -218 8,096 7,825 271 200 ’ 71 Apr.............................. 8,905 8,882 23 261 -238 8,169 7,895 274 242 32 8,936 8,852 84 309 -225 8,126 7,891 235 319 84 June............................. 8,913 8,878 35 258 -223 8,249 7,926 323 296 27 July............................. 9 203 9,140 63 375 -312 8,308 8,067 241 232 9 Aug.............................. 9,039 9,018 21 300 -279 8,294 7,995 299 360 — 61 Sept............................. 9,269 9,198 71 288 -217 8,395 8,103 292 286 6 Oct............................. 9,344 9,311 33 279 -246 8,439 8,176 263 229 34 Nov.............................. 9^305 9’, 258 48 293 -245 8,528 8,229 299 181 118 Dec.............................. 9; 507 9,448 59 220 -163 8^17 8,311 306 161 149 Week ending—• 1965—Dec. 1....................... 8,871 8,825 46 313 -267 8,092 7,775 317 111 206 8....................... 8,949 8,845 104 309 -205 8,054 7^797 257 130 127 15....................... 8,907 8,842 65 267 -202 8,284 7,840 444 58 386 22....................... 9,146 9,102 44 72 -28 8,111 7^944 ■ 167 62 105 29............... 9,160 9,125 35 252 -217 8,361 7',963 398 112 286 1966—July 6....................... 9,211 9,135 76 285 -209 8,192 8,039 152 268 -115 " 13 9’101 9’046 56 393 -337 8,734 8'104 630 176 454 20....................... 9,269 9,214 55 333 -278 8,062 8'062 164 -164 27........................ 9,201 9,157 44 417 -373 8*309 8,067 242 231 11 9,169 9,154 15 386 -371 8,341 8,032 309 345 — 36 ~ 10....................... 9,108 9,054 54 311 -257 8,433 8,045 388 313 75 17....................... 9,058 9,028 30 344 -314 8,223 8,022 201 327 -126 24....................... 8,947 8,919 28 312 -284 8^281 7'942 339 376 -37 31....................... 9,085 9,008 77 218 -141 8,193 7’956 237 442 -205 9,054 9,004 50 334 -284 8,268 7,990 278 333 -55 ‘ 14....................... 9^299 9^200 99 342 -243 8,375 8,076 299 301 —2 21................ 9,325 9,289 36 293 -257 8^757 8,201 556 273 283 28....................... 9,293 9^268 25 196 -171 8,137 8,136 I 245 -244 Oct. 5....................... 9,418 9,383 35 238 -203 8,397 8,134 263 286 —23 12....................... 9,387 9,295 92 212 -120 8,508 8,211 297 234 63 19....................... 9,261 9,254 7 348 -341 8'658 8'193 465 207 258 26....................... 9,373 9,320 53 272 -219 8/41 8/70 71 220 -149 9,382 9,345 37 344 -307 8,396 8,166 230 195 35 9....................... 9,372 9,312 60 213 -153 8,538 8,247 291 177 114 16....................... 9,297 9'270 27 362 -335 8^751 8,260 491 171 -320 23.. .................... 9,279 9,218 61 228 -167 8,316 8'226 90 198 -108 30....................... 9,244 9,174 70 341 -271 8‘558 8,188 370 179 -191 9,311 9,289 22 217 -195 8,350 8,213 137 212 —75 14....................... p9,316 P9.290 p26 262 p-236 P8J44 P8.271 P472 184 p278 21....................... P9.590 p9,540 p50 224 p-174 p8,429 ^8,337 P93 164 p-71 28....................... ^9,579 P9.557 p23 183 p-160 p8,783 P8,360 P423 119 p304 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 open­ ing figures for allowable cash; see also note 3 to preceding table. Note,—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks. Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

92 MAJOR RESERVE CITY BANKS JANUARY 1967 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 Total Bor­ week ending—■ s E e x r r v c e e e ­ s s s t r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N a d n t n e e e d t r r k s a ­ l S d u e o r f p i r c lu it s r P r e e e q a s r e v u o c r g i f v r e . e e n d s t ch P a u s r e ­ s Sales a 2 c tr - t a w io n a n s y s ­ 2 b c o b P u h a f a y u n n s i r k n e e ­ s s g t s o b S e a f l a l n l n i e n k e s g s t d L ea o t l o a e n rs s 3 de f r i a r o n o l w g e m s r ­ s * lo N a e n t s trans. Total—46 banks 28 187 835 -994 9.5 2,655 1,821 1,258 1,397 562 953 85 868 9............37 320 1,718 -2,001 19.6 3,310 1,592 1,361 1,949 231 831 70 761 16............ 34 390 1,722 -2,078 20.8 3,494 1,773 1 ,46! 2,033 312 647 83 564 23............ 171 110 1,498 -1,437 14.6 3,561 2,063 1 ,508 2,054 556 496 119 377 30............ 78 232 731 -885 8.8 3,036 2,305 1,425 1,611 880 512 144 368 Dec. 7............ 30 85 1,235 -1,287 12.5 3,034 1,803 1,415 1,620 389 732 204 528 14 45 359 1,449 -1,763 17.4 3,162 1,713 1 ,400 1,763 313 875 105 770 21............ 77 223 2,000 -2,146 20,2 3,513 1,513 1 ,275 2,237 238 1,198 117 1,081 28............ 247 313 1,508 -1,574 14.8 3,117 1,609 1 ,38! 1,736 227 1,250 140 1,111 8 in New York City Nov. 2............ 8 43 233 -268 6.4 1,053 820 568 485 252 583 82 501 9............17 213 624 -820 20.3 1,221 598 574 647 24 511 70 441 16.......... 22 152 835 -965 24.7 1,551 716 716 835 408 82 326 23............ 28 446 -418 10.6 1,315 869 724 591 145 368 114 255 30............ 30 90 -75 15 .4 1 ,083 1,157 705 378 453 355 128 227 20 455 -434 10.5 1,261 806 735 526 71 472 178 294 14............ 31 121 319 -410 10.2 1,390 1,071 836 553 234 535 95 440 21............ 36 75 586 -626 14.5 1,527 941 812 715 129 795 107 688 28............ 17 183 735 -901 20.8 1 ,520 786 737 783 49 999 130 869 38 outside New York City 20 144 602 -725 11.6 1,603 1 ,001 691 912 311 370 3 367 9............20 108 1,095 -1,182 19.1 2,088 994 786 1,302 207 320 320 16............ 12 238 887 -1,113 18.2 1,943 1,056 745 1,198 311 239 1 239 23............ 144 110 1,052 -1,018 17.2 2,247 1,195 784 1,463 411 128 6 123 30............ 47 142 806 -900 14.8 1,953 1,147 720 1,233 428 157 16 141 Dec. 7....... 10 85 776 -852 13.9 1,773 997 679 1,094 318 260 26 234 14 14 237 1,130 -1,353 22.2 1 ,773 642 563 1,209 79 340 10 329 21............ 41 148 1,413 -1,521 24.1 1,986 573 464 1,522 109 403 10 394 28............. 231 130 774 -674 10.6 1,597 823 644 953 179 252 10 242 5 in City of Chicago 3 1 309 -307 30.4 488 179 152 336 27 15 15 9............2 42 425 -465 47.8 648 223 200 448 23 12 12 16 -I 16 446 -464 48.7 655 208 187 468 21 15 15 23............ 2 3 488 -488 51.7 737 249 214 523 35 30............ 4 11 508 -516 54.7 675 167 143 532 24 15 15 Dec. 7............ 417 -416 43,6 579 162 150 429 12 4 4 14............ 3 64 349 -411 43.2 474 125 124 351 1 16 16 21 3 388 -385 37.5 533 144 129 404 16 24 24 28............ 15 47 401 -433 42.5 546 145 137 409 8 10 10 33 others Nov. 2............ 18 143 293 -418 7.9 1,114 822 538 576 284 354 3 351 9........... 18 66 669 -717 13.8 1,441 771 586 854 185 309 309 16............ 13 222 440 -649 12.6 1,288 848 558 730 290 224 1 224 23............ 141 107 564 -530 10.8 1,510 945 570 940 376 128 6 122 30............ 44 130 298 -385 7.5 1,278 980 577 701 403 143 16 126 9 85 360 -436 8.4 1,195 835 530 665 305 256 26 230 14............ 11 173 781 -943 18.3 1,299 517 440 859 78 323 10 313 21............ 38 148 1,025 -1,136 21 .5 1,453 428 335 1,118 93 379 10 370 28............ 215 83 373 -241 4.5 1,051 678 508 543 170 241 10 232 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 DISCOUNT RATES 93 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. 133 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Dec. 31 date rate Dee. 31 date rate Dec. 31 date rate Boston............................................. 4'4 Dec. 8, 1965 4 5 Dec 8 1965 414 5(4 Nov 24 1964 New York.................................... 4(6 Dec 6, 1965 4 5 Dec 6 1965 414 5 Dec 6 |965 5 Philadelphia.................................. 4(6 Dec. 10, 1965 4 5 Dec 10, 1965 414 5(4 Dec 10* 1965 5 Cleveland......................................... 4 4 Dec. 10, 1965 4 5 Dec 10, 1965 4(4 6 Dec 10* 1965 SIA Richmond..................................... 4‘/I Dec. 10’ 1965 4 5 Dec 10 1965 4(4 5(4 Dec' 10* 1965 5 Atlanta.................................... 4*/z Dec 8 1965 4 5 Dec 8* 1965 4(4 6(4 Dec 8* 1965 6 Chicago....................... 4(6 Dec. 6^ 1965 4 5 Dec 6, 1965 4(4 5(4 Dec 6* 1965 5 St. Louis.......................................... 4(6 Dec. 10, 1965 4 5 Dec 10, 1965 4(4 5*A Dec IO* 1965 5 Minneapolis...................... ............ 4 Dec. 10, 1965 4 5 Dec 10 1965 5*A Dec 1 O’ 1965 5 Kansas City.................................... 4’A Dec. 13 1965 4 5 Dec 13* 1965 4(4 5(4 Dec 11’ |965 5 Dallas............................................... 414 Dec. 10, 1965 4 5 4(4 5’A Dec 10 1965 5 San Francisco................................. 4'A Dec. 16; 1965 4 5 Dec; id; 1965 4'A 5'A Dec' io; 1965 5 1 Discounts of eligible paper and advances secured by such paper or obligations are limited to 15 days. by U.S. Govt, obligations. Rates shown also apply to advances secured 2 Advances secured to the satisfaction of the F.R. Bank. Maximum by obligations of Federal intermediate credit banks maturing within 6 maturity: 4 months. months. Maximum maturity: 90 days, except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and of agricultural paper may have maturities not member banks secured by U.S. Govt, direct obligations. Maximum matu­ over 6 months and 9 months, respectively, and advances secured by F1CB 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 all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. O In c t e ffe I 3 c S 0 t .. D .. e .. c . 1 . . . 9 . 3 4 .. 1 2 .. , . .. 1 .. 9 .. 4 . . . . 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t r 1 > 'A t A - - l l 'A t» 1 1 I 4 A S M e u ‘ a p g “ y t . . 1 1 9 4 5 2 5 2 . . . . . . A . . . . . . . . . . . . . . . . . . p 1 . . . . . . . . . . . . 9 r . . . . . . . . . . . . . 5 . . . . . . 5 . . . . . . . . . . . . 1 . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 2 2 l 1 l l ..' ' ’ ’ .A A A A . 1 .. - - - - 1 - .- 2 2 2 2 4 . l l ' ' % ' A ’ 1 A A / 4 . 2 2 l l l l ' ’ ' A ’ ’ / / / 4 4 4 4 J S M M u e n a a p y e r t . . 2 1 1 1 6 9 1 6 2 . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . . 9 . . . . . . . . . . 5 . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . 8 . . . . ...... 2 3 . 3 . ' . I A .4 3 ' . M . - - ' . A 3 . 3 . > .. A ............ 3 3 4 3 4 3 ( '4 6 ' 13............................. 2‘/4 2'4 Ap 1 r 9 . 46 2 5.....................t.. ...'A....-.l. . i Nov. 2 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2 4 ' - A 2'A 2 2' ' A A 1960 1 1 3 IM 4 1956 10......3...‘A...-..4...............3(6 Anr. ............................. 21/. 2’4 14............................. 3'A 3(6 1948 ' .............................; 23/4 3 2’4 3 -3’A 3 I -l'A 1% Aug, 24............................ 214-3 3 3 3 19................................. l'A 1(4 3 3 114-1'A 1(4 ~ 23......... l'A I (4 1957 1963 1950 A N u o g v . , 2 1 9 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ■’ 3 - - 'A 3 3 ' ' A A 3 3 3 'A July 17..................... ' . ... 2 ... 6 . ...... 3 .. ..3.. - '.A. 3 .. ' . A ........... 3 3. ( '4 6 Aug, 21........................l.'.A....-..t.’A 1% Dec. 2............................. 3 3 “ 25................................. 114 P/4 1964 1958 Jan. 22.....................2..%....-.3. 3 Nov. 24............................. 31/1-4 4 1953 24............................. 214-3 2’/4 30..........4..................4 Jan. 16......................l..’.A...-.2.. 2 Mar. 7............................. 21/4-3 2'/< 23...................... 2 2 13............................. 214-234 2'4 21............................. 2'A' 2'4 1965 1954 Apr. 18.............. 1j/4 1 - ’4 21 /4 1 l’ ’ / 4 4 13...... 4 .. ..4.. - .'A 4 ... 'A ............ 4 .4 ( '4 6 Feb. 5......................l..’.A...-.2.. \l Aug. 15.. . . .............. 1’4-2 1* ’ 1 1 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Iftc’Afe 1% Oc ‘ t. 2 23 4 . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 ’4 2 - - 2 2'A 2 2 1966 May 21............................... l'A Nov. 7............................. 2'A 2(6 In effect Dec. 31............. 41/2 4(6 t Preferential rate of one-half of I per cent for advances secured by against U.S. Govt, obligations was the same as its discount rate except U.S. Govt, obligations maturing in 1 year or less. The rate of I per cent in the following periods (rates in percentages): 1955—May 4-6, 1.65; was continued for discounts of eligible paper and advances secured by Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8. 2.15; Nov. 10, 2.375; 1956—Aug. such paper or by U.S. Govt, obligations with maturities beyond one year. 24-29, 2.75; 1957—Aug. 22, 3.50; I960—Oct. 31-Nov. 17, Dec. 28-29, 2.7 5; 1961—Jan. 9, Feb. 6-7, 2.7 5; Apr. 3-4, 2.5 0; June 29, 2.7 5; July Note.—Discount rates under Secs. 13 and 13a (as described in table 20, 31, Aug. 1-3, 2.5 0; Sept. 28-29. 2.7 5; Oct 5. 2.5 0; Oct. 2 3. Nov. 3, above). For data before 1942, see Banking and Monetary Statistics, 2.75; 1962—Mar. 20-21, 2.75; 1964 -Dec. 10. L85; Dec. 15, 17, 22. 24. 1943, pp 439-12. 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875. The rate charged by the F.R. Bank of N.Y. on repurchase contracts Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

94 RESERVE REQUIREMENTS JANUARY 1967 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Net demand deposits2 Time deposits Ne d t e d p e o m si a ts n 2 d Time deposits Effective date 1 C r b e e c s a n i e n t t r y k r v a s e l R b e c a s i n e ty k rv s e C ba t o r n u y k n s ­ C r r e e e a c s s n n i e e t t r r d y r v v a e e l C ba o tr n u y k n s ­ Effective date । R b e c a s i n e ty k rv s e C ba o tr n u y k n s ­ R b e c a s i n e ty k rv s e C ba o tr n u y k n s ­ banks 1 n effect Dec. 31,1949............ 22 18 12 5 5 1962—Oct. 25, Nov. 1 . .. ............. 4 4 1951—Jan. 11,16................... 23 19 13 6 6 1966—July 14,21............. (4) (4) Jan. 25, Feb. 1............ 24 20 14 1953—July 9,1..................... 22 19 13 Sept. 8, 15............. (-') (■') 1954—June 24, 16................... 21 5 5 July 29, Aug. 1............ 20 18 12 In effect Jan. 1, 1967 6 . . . . 16'4 12 (’) (-') 1958—Feb. 27, Mar. 1........... 19/2 17/2 H/z Mar. 20, Apr. 1........... 19 17 It Apr. 17......................... 18’4 Apr. 24......................... 18 1614 Present legal 1960—Sept. 1......................... !7/2 requirement: Nov. 24......................... 12 Dec. 1......................... !6'/2 Minimum........................ 10 7 3 3 1962—July 28......................... ............. Maximum................. 22 14 10 10 i When two dates are shown, the first applies to the change at central 6 Effective Jan. 5. 1967, deposits such as Christmas and vacation club reserve or reserve city banks and the second to the change at country accounts became subject to same reserve requirement as savings deposits banks. (see note 5). 2 Demand deposits subject to reserve requirements are gross demand Note.—All required reserves were held on deposit with F.R. Banks, deposits minus cash items in process of collection and demand balances June 21, 1917, until late 1959. Since then member banks have been allowed due from domestic banks. to count vault cash also as reserves as follows: country banks—in excess 3 Authority of the Board of Governors to classify or reclassify cities of 4 and 214 per cent of net demand deposits effective Dec. I , 1959, and as central reserve cities was terminated effective July 28, 1962. Aug. 25, I960, respectively; central reserve city and reserve city banks— 4 On savings deposits—4 per cent; on other time deposits up to $5 in excess of 2 and 1 per cent effective Dec. 3, 1959, and Sept. I, I960, million—4 per cent; on other time deposits in excess of $5 million— respectively; all member banks were allowed to count all vault cash as 5 per cent. reserves effective Nov. 24, 1960. 5 On savings deposits—~4 per cent; on other time deposits up to $5 million—4 per cent; on other time deposits in excess of $5 million— 6 per cent. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Nov. 1, 933—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type and maturity of deposit Nov. Feb. Jan. Jan. Jan. July Nov. Dec. Type of deposit July Sept. 1. 1, 1, 1, 17, 24. 6. 20, 26, 1933 1935 1936 1957 1962 1963 1964 1965 1966 1966 Savings deposits: Savings deposits................... 4 4 12 months or more....... 3 214 214 3 4 4 4 4 Other time deposits:1 Less than 12 months.... 3 214 2!4 3 3’4 3’4 4 4 Multiple-maturity: Other time deposits:1 90 days or more........... 5 5 12 months or more....... 3 214 2'/4 3 4 4 4’4 514 Less than 90 days.... 4 4 6 months to 12 months.. . 3 214 214 3 3’4 4 4’4 514 (30-89 days) 90 days to 6 months..... 3 214 2 2’4 2’4 4 4/2 514 Single-maturity: Less than 90 days..... 3 2'4 t 1 I I 4 5'/l $100,000 or more...... 5’4 5’4 (30-89 days) Less than $100,000. . . . 54 5 1 For exceptions with respect to foreign time deposits, see Oct. 1962 any event exceed the maximum rate payable by State banks or trust Bulletin, p. 1279, and Aug. 1965 Bulletin, p. 1084. companies on like deposits under the laws of the State in which the member bank is located. Effective Feb. 1, 1936, maximum rates that may be paid Note.—Maximum rates that may be paid by member banks as estab- by insured nonmember commercial banks, as established by the FDIC, lished by the Board of Governors under provisions of Regulation Q. have been the same as those in effect for member banks. Under this regulation the rate payable by a member bank may not in For rates for postal savings deposits, see Board’s Annual Reports. MARGIN REQUIREMENTS Effective date Regulation Jan. 4, Apr. 23, Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, 1955 1955 1958 1958 1958 1960 1962 1963 Regulation T: For extensions of credit by brokers and dealers on listed securities.................................................... 60 70 50 70 90 70 50 70 For short sales............................................................ 60 70 50 70 90 70 50 70 Regulation U: For loans by banks on stocks............................... 60 70 50 70 90 70 50 70 Note.—Regulations T and U, prescribed in accordance with Securities centage of its market value at the time of extension; margin requirements Exchange Act of 1934, limit the amount of credit that may be extended on are the difference between the market value (100 per cent) and the maxi­ a security by prescribing a maximum loan value, which is a specified per­ mum loan value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 BANK DEPOSITS; OPEN MARKET ACCOUNT 95 DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item me A m ll b er Country I tern me A m ll b er Country banks Y N o e r w k C o it f y Other banks banks Y N o e r w k C o it f y Other banks City Chicago City Chicago Four weeks ending Nov. 9, 1966 Four week5 ending Dec. 7, 1966 Gross demand—Total.... 145,435 28,017 6,821 53,694 56.903 Gross demand—Total... . 145,751 28,168 6.714 53,508 57,362 Interbank...................... 16,121 5,099 1 307 7.624 2,092 Interbank................ 16.348 5 253 1 317 7 672 2 107 U.S. Govt...................... 3’997 91 1 344 1 .557 1 ' 186 U.S. Govt...................... 2.916 644 111 1 053 1 108 Other............................. 125,317 22,008 5,171 44,514 53,626 Other............................. 126 488 22,270 5 287 44783 54*148 Net demand •.................... 116'289 20.701 5’273 42,143 48’173 Net demand 1.................... 115 561 20'291 5 059 41 772 48 440 Time................................. 127,981 18,121 4,846 48,680 56,335 Time................................. 127,139 17 689 4 747 48^434 56^270 Demand balances due Demand balances due from dom. banks.......... 8,108 200 305 2,072 5,531 from dom. banks...... 8 165 225 321 2 046 5 574 Currency and coin........... 3,978 322 80 1 ,215 2 J63 Currency and coin........... 4,095 331 83 1 ,266 2^416 Balances with F.R. Ba lances with F.R. Banks............................ 19,352 4,088 1 .035 8.133 6,096 Banks,........................... 19 077 3,996 985 8 018 6 078 Total reserves held........... 23’330 4,410 1,115 9,348 8.459 Total reserves held........... 23’172 4,327 1,068 9 284 8 494 Required........................ 23.008 4,399 1,108 9,308 8 J 95 Requited........................ 22,831 4,305 1,067 9,238 8.222 Excess........................... 322 II 7 ' 40 264 Excess............................ 341 22 ! 46 272 1 Demand deposits subject to reserve requirements are gross demand Note.—Averages of daily figures. Balances with F.R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. 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 1-5 years Month Exch., c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f r m r t s i p t , y ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x o t i u c f r r h t i s . . ty tions 1965­—Nov 1,666 598 150 1,666 598 150 -5,582 5,582 Dec........ 816 615 297 816 615 297 1966-—Jan.............. 894 919 228 894 919 228 Feb............. 1,114 979 171 1,070 979 171 33 957 II -957 Mar............ 960 314 101 873 314 101 78 9 144 Apr............. 929 748 201 887 748 201 18 25 Mav............ 1 ,208 392 50 1,174 392 50 -281 34 281 June 1 ,448 650 110 1,296 650 1 10 55 108 88 -108 Illlv 2,607 2,489 2,526 2,489 29 Aug........... 1 ,602 1,273 98 1,602 1,273 98 84 76 Sept............ 1 ,976 1 ,419 170 1,976 1,419 170 Oct.............. 1 ,281 893 320 1,281 893 320 Nov........... 860 223 323 860 223 323 6,456 -6,253 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements acceptances Net (U.S. Govt, Net change 5-10 years Over 10 years securities) change in U.S. Month in U.S. Under Govt, Govt, Out­ repur­ secur­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E a x o tu c r r h i . t y c G p h r a u o s r s e ­ s s G sa r l o e s s s m E a x t o u c r r h i . . t y c G h p r a u o s r s e ­ s s G sa ro le s s s se ti c e u s r­ r n ig e h t t, m a c g h e r a n e s t e e s ­ , a t a c i n e c s c e e p & s t ­ shifts shifts net 1965—Nov 24 24 918 8 16 941 Dec 1,661 1,372 193 25 52 270 1966—Jan. 1,595 1,545 -203 -2 -75 -280 Feb 272 611 -376 12 -365 Mar -144 222 222 545 3 1 549 Apr 682 682 -20 4 30 14 Maj 421 421 766 -I 20 786 June 8 185 185 689 2 58 748 July 39 12 120 26 212 -30 -157 24 Aug -160 364 457 138 -3 135 Sept 97 97 388 -1 387 Oct. 275 275 69 4 21 94 Nov -203 1 .775 1.153 937 3 56 996 Note.—Sales, redemptions, and negative figures reduce System holdings; all other figures increase such holdings. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BANKS JANUARY 1967 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1966 1956 1965 Dec. 28 Dec. 21 Dec. 14 Dec. 7 Nov. 30 Dec. Nov. Dec. Assets Gold certificate account.. ............................................ 10,836 10,837 10.821 10,839 10,852 10,836 10,852 11,702 Redemption fund for F.R. notes................................... 1 .842 1 ,842 1 .836 1 ,824 1 ,815 1 ,838 1,815 1,734 Total gold certificate reserves........................................ 12.678 12.679 12.657 12,663 12.667 12,674 12,667 13.436 Cash................................................................................ 295 291 289 284 293 298 293 129 Discounts and advances: Member bank borrowings.. ................................ 957 291 334 345 445 173 445 96 Other.............................T............................................ 13 13 13 13 13 41 Acceptances: Bought outright.......................................................... 69 69 64 59 54 69 54 75 Held under repurchase agreements........................... 113 121 47 67 77 124 77 112 Federal agency obligations—Held under repurchase agreements............................................................... 51 24 24 21 34 U.S. Govt, securities: Bought outright: Bills.......................................................................... 11,411 I 1,416 1 1 .375 11.525 11.473 11,803 11,473 9,100 Certificates—Special............................................ . Other.............................................. 4.351 4.351 4.351 4,35! 4,351 4,351 4,351 Notes....................................................................... 21 .302 21 ,292 21.278 21 ,278 21,278 21,302 21,278 24,828 Bonds..................................................................... 6.199 6.192 6.188 6.188 6,188 6,199 6,188 6.550 Total bought outright................................................ 43.263 43,251 43.192 43.342 43,290 43,655 43,290 40,478 Held under repurchase agreements......................... 672 668 345 341 622 627 622 290 Total U.S. Govt, securities............................................ 43.935 43,919 43.537 43,683 43.912 44,282 43.912 40,768 Total loans and securities............................................. 45.125 44.437 44,019 44,188 44,501 44,682 44,501 41,092 Cash items in process of collection.............................. 7,980 9.438 7,860 6,875 7.212 7,879 7,212 6,915 Bank premises................................................................. 107 107 104 103 103 107 103 103 Other assets: Denominated in foreign currencies....................... 841 849 842 833 709 875 709 629 [MF gold deposited i...... .................................... 21 1 21 1 21 1 211 211 211 21 1 All other. ................................................................. 324 298 287 266 232 332 232 348 Total assets...................................................................... 67.561 68.310 66,269 65,423 65,928 67.058 65,928 62.652 Liabilities F.R. notes........................................................................ 39.661 39.528 39.458 39,219 38,953 39,339 38.953 37,074 Deposits: Member bank reserves............................................... 19.970 19.7 20 18,698 18,598 19,093 19.794 19,093 18,447 U.S. Treasurer—General account............................. 249 312 273 197 299 416 299 668 Foreign.................................................................... 168 152 166 205 196 174 196 150 Other: IMF gold deposit!.................................................. 21 1 211 21 1 21 1 21 1 211 21 1 All other................................................................ 204 198 203 195 188 377 188 355 Total deposits................................................................. 20.802 20.593 19,551 19.406 19,987 20,972 19.987 19.620 Deferred availability cash items.................................... 5.557 6,687 5.796 5,212 5,432 5,369 5,432 4,667 Other liabilities and accrued dividends2...................... 256 256 255 263 271 238 271 1 89 Total liabilities................................................................ 66.276 67,064 65.060 64.100 64,643 65,918 64,643 61,550 Capital Accounts Capital paid in.............................................................. 570 569 569 569 568 570 568 551 Surplus............................................................................. 551 551 55! 551 551 570 551 551 Other capital accounts ................................................. 164 126 89 203 166 166 Total liabilities and capital accounts............................ 67,561 68.310 66,269 65,423 65,928 67,058 65,928 62,652 Contingent liability on acceptances purchased for foreign correspondents.......................................... 192 197 203 206 203 19! 203 144 U.S. Govt, securities held in custody for foreign account.................................................................... 7,642 7.524 7.379 7.353 7.450 7,036 7,450 8.271 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 42.190 42,089 41.936 41.714 41.599 42,218 41,599 40,350 Collateral held against notes outstanding: Gold certificate account........................................ 6.522 6.522 6.522 6,472 6,442 6.505 6,442 6.625 Eligible paper.............................................................. 35 9 9 16 48 2 48 1 U.S. Govt, securities................................................... 36,956 36,956 36,956 36,721 36,471 36,956 36,471 34.700 Total collateral........................................................ 43,513 43.487 43.487 43.209 42,961 43,463 42,961 41.326 1 See note 2 to table at bottom of p. 162. 2 No accrued dividends at end-of-December dates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FEDERAL RESERVE BANKS 97 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON DECEMBER 31. 1966 (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 i . s M ap in o n li e s ­ K C s a a it s n y ­ Dallas F S c r i a a s n n c ­ o Assets Gold certificate account...................... 10,836 674 2,048 699 831 1,044 621 1 ,827 470 213 401 655 1,353 Redemption fund for F.R. notes....... 1,838 102 444 96 155 157 103 331 64 32 72 62 220 Total gold certificate reserves............. 12,674 776 2,492 795 986 1,201 724 2,158 534 245 473 717 1 ,573 F.R. notes of other Banks.................. 857 58 189 48 98 87 76 86 30 23 34 41 87 Other cash......................................... 298 9 31 6 50 16 37 46 31 8 14 18 32 Discounts and advances: Secured by U.S. Govt, securities.., 117 1 7 1 4 14 20 2 3 7 58 Other............................................... 56 25 31 * ♦ * Acceptances: Bought outright........................... 69 69 Held under repurchase agreements. 124 124 Federal agency obligations—Held under repurchase agreements...... 34 34 U.S. Govt, securities: Bought outright........................... 43,655 2,326 10,899 2,289 3,562 3,163 2,470 7,322 1 ,491 897 1,661 1 ,592 5,983 Held under repurchase agreements . 627 627 Total loans and securities................... 44,682 2,327 11,785 2,290 3,562 3,167 2,515 7,342 1 ,493 900 1,668 1,592 6,041 Cash items in process of collection... 10,296 630 1 ,994 542 723 811 871 1,742 480 290 667 540 1,006 Bank premises..................................... 107 3 9 3 5 6 20 20 8 3 11 10 9 Other assets: Denominated in foreign currencies. 875 42 i 229 47 79 45 52 125 31 21 38 51 115 IMF gold deposited2................. 211 21 1 All other.......................................... 332 17 86 17 27 22 19 54 11 8 13 12 46 Total assets.......................................... 70,332 3,862 17,026 3,748 5,530 5,355 4,314 11,573 2,618 1,498 2,918 2,981 8,909 Liabilities F.R. notes........................................... 40,196 2,388 9,238 2,306 3,316 3,680 2,327 7,293 1,471 706 1,511 1,278 4,682 Deposits: Member bank reserves................... 19,794 859 5,278 896 1,458 962 1,187 2,754 727 482 877 1 ,065 3,249 U.S. Treasurer—General account.. 416 * 271 1 1 ' 1 1 1 1 137 2 Foreign................................... 174 8 3 56 9 14 8 9 23 6 4 7 9 21 Other: IMF gold deposit 2............. 211 211 All other..................................... 377 9 185 9 13 14 10 29 6 3 7 7 85 Total deposits...................................... 20,972 876 6,001 914 1,486 985 1,207 2,806 740 490 892 1,218 3,357 Deferred availability cash items......... 7,786 532 1 ,418 457 608 615 697 1 ,270 360 270 456 411 692 Other liabilities 238 12 73 H 18 15 13 38 7 4 9 8 30 Total liabilities..................................... 69,192 3,808 16,730 3,688 5,428 5,295 4,244 I 1,407 2,578 1,470 2,868 2,915 8,761 Capital Accounts Capital paid in....................... 570 27 148 30 51 30 35 83 20 14 25 33 74 Surplus................................................. 570 27 148 30 51 30 35 83 20 14 25 33 74 Other capital accounts...................... Total liabilities and capital accounts.. 70,332 3,862 17,026 3,748 5,530 5,355 4,314 11,573 2,618 1,498 2,918 2,981 8,909 Ratio of gold certificate reserves to F.R. note liability (per cent): Dec. 31, 1966........................... 31 5 32.5 27.0 34.5 29.7 32.6 31 1 29.6 36.3 3.47 31.3 56 1 33 6 Nov. 30,’ 1966........................... 32.0 33.5 36.1 29.8 29.3 32.0 28.5 34.6 27.9 26.6 30.4 27,5 27.8 Dec. 31 J965........................... 35.4 35.6 33.6 39.3 36.4 34.1 33.7 36.7 36.4 41 4 38.1 35.6 33 8 Contingent liability on acceptances purchased foi foreign correspond­ ents. ............................................. 191 9 4 49 10 17 10 12 27 7 5 9 11 25 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).............................................. 42,218 2,494 9,687 2,359 3.5771 3.803 2,459 7,653 1 ,538 743 1,579 1,373 4,953 Collateral held against notes out­ standing: Gold certificate account.................. 6,505 500 1 ,000 483 600 795 450 1,100 310 127 225 180 735 Eligible paper.................................. 2 2 U.S. Govt, securities.................. 36,956 2,016 8,900 2,000 3,050 3,045 2,050 6,700 1,310 655 1,400 1,230 4,600 43,463 2,516 9,900 2,483 3,650 3,840 2,500 7,800 1,622 782 1,625 1,410 5,335 1 After deducting $646 million participations of other F.R. Banks. 3 After deducting $118 million participations of other F.R. Banks. 2 See note 2 to table at bottom of p. 162. 4 After deducting $142 million participations of other F.R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

98 FEDERAL RESERVE BANKS; BANK DEBITS JANUARY 1967 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1966 1966 1965 Dec. 28 Dec. 21 Dec. 14 Dec. 7 Nov. 30 Dec. Nov. Dec. Discounts and advances—-Total................................... 957 304 347 358 458 173 458 137 Within 15 days........................................................... 953 300 342 349 442 168 442 99 16 days to 90 days..................................................... 4 4 5 9 16 5 16 38 Acceptances—Total...................................................... 182 190 111 126 131 193 131 187 Within 15 days........................................................... 123 128 55 78 88 135 88 121 16 days to 90 days...................................................... 59 62 56 48 43 58 43 66 U.S. Govt, securities and Federal agency obligations— Total....................................................................... 43,986 43,943 43,561 43,704 43,912 44,316 43,912 40,768 Within 15 days1........................................................ . 1 ,893 2,212 1 ,681 1,667 2,043 1,169 2,043 793 16 days to 90 days.................................................... 8,629 8,064 8,380 8,458 8,346 9,415 8,346 6,545 91 days to 1 year........................................................ 24,613 24,828 24,669 24,748 24,692 24,881 24,692 17,530 Over 1 year to 5 years............................................... 7,458 7,451 7,446 7,446 7,446 7,458 7,446 14,066 Over 5 years to 10 years........................................... 991 990 988 988 988 991 988 1,449 Over 10 years.............................................................. 402 398 397 397 397 402 397 385 ‘Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o er u l n in d g s B fr e a lg n i c a s n C d a o n l a l d ar i s an F fr r a e n n c c s h G m e a rm rk a s n It l a i l r i e an Jap y a e n n ese g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1966—Jan............................... 398 303 53 2 1 34 1 3 * Feb............................... 166 51 53 2 1 44 1 1 3 10 Mar..................... 218 51 53 2 1 74 9 1 3 24 Apr.............................. 299 103 53 2 1 81 9 | 3 47 May........... 364 163 53 2 1 116 2 1 3 24 June............................. 482 271 54 2 1 124 1 1 3 24 July.............................. 702 566 54 2 1 75 2 1 * 2 Aug.............................. 687 476 54 2 I 150 1 ♦ 2 Sept.............................. 742 587 54 20 1 76 1 1 * 3 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits t ( o in d e b m ill a io n n d s d o e f p d o o si ll t a a r c s) counts1 Turnover of demand deposits Period SM T 2 o 2 S 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 Y S l c A l . 2 . ) 2 ’s 4 SM o 2 th 1 S 8 e A r ’s SM T 2 o 2 S 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 l . 2 . ) 2 ’s 4 SM o 2 th 1 S 8 e A r ’s 1965—Sept.............................. 5,126.9 2 104.3 1 142.9 3,022.6 1 879.7 47.2 95.4 44.1 35.3 31.4 Oct............................... 5,129.9 2,061.0 1,165.4 3,068.9 1,903.5 47.4 96.3 43.8 35.1 31.4 Nov...................... 5,408.3 2,229.4 1,215.0 3,178.9 1,963.9 50.5 104.7 47.6 37.0 32.1 Dec.............................. 5,523.1 2,273 5 1,234.5 3,249.6 2 015.1 50.6 102.2 47.7 37.5 33.3 1966—Jan............................... 5,509.6 2,311.5 1,218.4 3,198.1 1,979.7 50.7 104.5 47.3 37.0 32.7 Feb............................... 5'605.6 2,341.7 1'251.2 3,263.9 2,012 7 50.9 105.6 47.6 37.0 32.5 Mar.............................. 5,811.7 2 414 6 1,336 6 3 >97 I 2’060 5 52.3 107 1 49.I 38 3 33.5 Apr............................... 5,934.1 2,544.0 1,304.2 3,390.1 2,085.9 52.8 112.0 47.8 37.7 33.3 May................... 5'797.5 2’449.4 1'311.3 3,348.1 2,036.8 52.4 109.3 49.8 37.8 32.8 June............................. 5 >68.8 2'491.7 1,314.7 3,377.1 2,062.4 53,7 109.1 51.1 39.0 33.7 July.............................. 5,989.1 2 480 6 1,366.1 3,508 5 2,142.4 53.1 108. 3 51.1 38.9 33.8 Aug............................. 6,149.9 2,676.1 1,348.5 3,473.8 2,125.3 54.4 112.7 52.2 39.3 34.1 Sept.............................. 6,141.8 2,625 2 1,378.7 3,516 6 2 137.9 53 6 109.5 51.1 39.4 34.3 Oct................. 6,038.9 2,551.8 1,363.5 3,487.1 2,123.6 53.0 108.2 50.6 38.8 33.8 Nov............................. 6,096.4 2,566.6 1,391.4 3,529.8 2,138.4 54. 6 111.0 53.2 39.8 33.8 Dec............................... 6^373.9 2,844.6 1 >07.3 3^529.3 2'122,0 56.7 120.9 52.9 39.7 34.1 i Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 U.S. CURRENCY 99 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 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 l’4O4 1 '048 65 2,110 6,275 9'119 8,850 2*548 5^070 428 782 5 17 1950..................... 27,741 19’305 l'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 I960...................... 32,869 23'521 2'427 1,533 88 2,246 6,691 10,536 9^348 2,815 5,954 249 316 3 10 196!..................... 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 6348 240 293 3 10 1963 ..................... 37’692 26’807 3'030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964..................... 39’619 28,100 3,405 1'806 111 2,517 7,543 12,717 11,519 3',381 7 590 248 293 2 4 1965—Oct............ 40,754 28,926 3,856 1,807 121 2,489 7,624 13,029 11 828 3,411 7,883 243 285 3 4 Nov........... 41,824 29,829 3,956 1,858 124 2^571 7,882 13,439 11,994 3,469 7,990 243 286 3 4 Dec............ 42,056 29^842 4’027 1,908 127 2^18 7,794 13,369 12,214 3,540 8 J 35 245 288 3 4 1966—Jan............. 41,092 28,982 4,060 1,818 127 2,489 7,514 12,974 12,110 3,482 8,092 243 286 3 4 Feb............ 4L252 29,149 4'096 1,818 128 2,495 7,586 13,027 12 J 03 3,470 8.098 243 286 3 4 Mar........... 41,469 29,323 4,152 1,824 129 2,496 7,607 13,116 12'147 3,478 8,136 242 285 3 4 Apr 41,538 29’373 4,192 1,838 130 2,502 7,585 13,125 12,166 3,485 8’, 148 242 285 3 4 May.......... 42J02 29'868 4'231 1^876 133 2,555 7,732 13'342 12,234 3’507 8,196 241 284 3 4 June.......... 42^554 30'228 4^264 1,884 135 2,570 7; 805 13^69 12,326 3^542 8,254 241 283 3 4 July........... 42'708 30'311 4'285 1'880 136 2,550 7,770 13,690 12'397 3,560 8,307 240 283 3 4 Aug........... 42,910 30,455 4'317 1 ,885 138 2,561 7,780 13,774 12'456 3,568 8,358 240 283 3 4 Sept........... 42^802 30 J18 4,’342 1 ^899 138 2,551 7^730 13'659 12,483 3’562 8,392 239 283 3 4 Oct............ 43'113 30,556 4.380 1 >926 137 2,583 7,785 13,745 12^556 3,572 8,455 239 283 3 4 Nov........... 44;245 3 I,499 4.447 1 .996 137 2,684 8,076 14,159 12,747 3,632 8.583 240 285 3 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Held by T s o ta t n a d l i o n u g t , ­ As security For F.R. 1966 1965 Kind of currency Oc 1 t 9 . 6 3 6 1, c g e a o r s t g l i i d a l f v i i c n e a a r n s t t d e s Tr c e a a s s h ury A B F a g a n R e n d n k . t s s A B a g a n e n d n k t s s Oct. 31 Sept. 30 Oct. 31 Gold............................................................................... 13,159 (12,667) 2492 Gold certificates.............................................................. (12,667) •'12,666 1 ................. Federal Reserve notes.................................................... 41,597 113 2,644 38,840 Treasury currency—Total.............................................. 6,244 (572) 546 293 5,405 Standard silver dollars............................................... 485 3 482 Silver bullion.............................................................. 776 569 208 Silver certificates......................................................... (572) 3 8 561 ................. Fractional coin............................................................ 4,569 329 275 3,965 United States notes.................................................... 323 5 10 307 In process of retirement............................................. 91 7 90 Total—Nov. 30, 1966.................................................... *61,001 (13,238) 1,151 12,666 2,938 44,245 Oct. 31, 1966..................................................... 660,548 (13,351) 1,144 12,774 3,516 43,113 Nov. 30, 1965.................................................... 658.798 (14,222) 773 13,511 2,691 41,824 1 Outside Treasury and F.R. Banks. Includes any paper currency held s Redeemable from the general fund of the Treasury. outside the United States and currency and coin held by banks. Esti­ <> Does not include all items shown, as some items represent the security mated totals for Wed. dates shown in table on p. 89. for other items; gold certificates arc secured by gold, and silver certificates 2 Includes $156 million reserve against United States notes and $211 by standard silver dollars and monetized silver bullion. Duplications million gold deposited by and held for the International Monetary Fund. are shown in parentheses. 2 Consists of credits payable in gold certificates: (1) the Gold Certificate Fund—Board of Governors, FRS; and (2) the Redemption Fund for F.R. Note.—Prepared from Statement of United States Currency and Coin notes. , and other data furnished by the Treasury. For explanation of currency 4 Through Dec. 31, 1965, shown separately as subsidiary silver coin reserves and security features, see the Circulation Statement or the Aug. and minor coin. For this breakdown see earlier Bulletins. 1961 Bulletin, p. 936. 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100 MONEY SUPPLY; BANK RESERVES JANUARY 1967 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 n t co D d m e e m p p o o a s n n i e t d n t jus a t d ed ­ 1 Total c C om ur p re o n n c e y n t co D d m e e p m p o o a s n n i e t d n t jus a t d ed ­ 1 d d e e p m os a i n ts d 1 1959—Dec................................................... 141.9 28.9 113.1 67.4 145.6 29.5 C116.1 66.6 4.9 I960—Dec................................................... 141.1 28.9 112.1 72.9 144.7 29.6 115.2 72.1 4.7 1961—Dec................................................... 145.5 29.6 116.0 "82.7 149.4 30.2 119.2 81.8 4.9 1962—Dec................................................... 147.5 30.6 116.9 97.8 151.6 31.2 120.3 96.7 5.6 1963—Dec................................................... 153.1 32.5 120.6 112.2 157.3 33.1 124.1 111.0 5.1 1964—Dec................................................... 159.7 34.2 125.4 126.6 164.0 35.0 129.1 125.2 5.5 1965—Dec................................................... 167.2 36.3 130.9 146.9 172.0 37.1 134.9 145.2 4.6 168.0 36.6 131.4 147.8 173.0 36.5 136.5 147.3 3.8 168.2 36.8 131.4 148.5 167.8 36.4 131.4 148.7 5.2 Mar.................................................. 169.3 36.9 132.3 149.5 167.8 36.6 131.3 150.2 4.6 Apr................................................... 170.9 37.2 133.7 151.4 171.6 36.8 134.8 152.2 3.1 May.................................................. 170.2 37.3 132.9 153.0 166.9 37.0 129.9 153.9 7.2 171.1 37.4 133.7 2153.7 168.8 37.3 131.5 2154.1 6.3 July.................................................. 169.6 37.7 '1319 155.3 167.9 37.8 130.1 155.8 8.2 Aug.................................................. 169.6 37.8 131.8 156.6 166.9 37.9 129.1 157.0 5.2 170.5 37.9 132.6 157. 1 169.5 37.9 131.5 156.9 4.5 Oct.................................................... 169.6 37.9 131.7 156.8 170.1 38.0 132.1 156.6 4.8 Nov.................................................. 169.2 38.0 131.1 156.9 171.0 38.5 132.5 155.6 3.7 Dec.11............................................... 170.3 38.2 132.0 158.0 175.2 39.0 136.1 156.3 3.5 Week ending—■ Nov. 2.......................................... 168.9 37,8 131.1 156.7 171.1 37.8 1 33.3 156.2 4.7 9............................................ 168.8 38.0 130.9 156.7 171.0 38.5 132.5 155.9 4.6 16............................................ 168.9 38.1 130.8 156.9 171.3 38.6 132.8 155.6 3.2 23............................................ 169.3 38.0 131.3 156.9 170.4 38.6 131.8 155,3 3.3 30............................................ 169.3 38.1 131 .2 156.8 170.6 38.6 1 32.1 155.4 3.6 Dec. 7............................................ 169.7 38. 1 131 .7 157.0 172.7 38.9 133.8 155.6 3.5 14^.......................................... 169.0 38.2 130.8 157.5 173.9 39. 1 134.9 155.9 2.3 2D.......................................... 171.8 38.3 133.5 158.0 178. 1 39.1 138.9 156.0 2.3 28*'.......................................... 170.2 38.4 131 .8 158.8 175.1 39.3 135.7 156.9 5.3 i At all commercial banks. Averages of daily figures. Money supply consists of (1) demand 2 Effective June 9, 1966, balances accumulated for payment of personal deposits at all commercial banks other than those due to domestic com­ loans were reclassified for reserve purposes and are excluded from time mercial banks and the U.S. Govt., less cash items in process of collection deposits reported by member banks. The estimated amount of such and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ deposits at all commercial banks ($1,140 million) is excluded from time rency outside the Treasury, F.R. Banks, and vaults of all commercial deposits adjusted thereafter. banks. Time deposits adjusted are time deposits at all commercial Note.—For description of revision of series and for back data begin­ banks other than those due to domestic commercial banks and the ning Jan. 1959, see Sept. 1966 Bulletin, pp. 1303-15; for monthly data U.S. Govt. 1947-58, see June 1964 Bulletin, pp. 679-89. AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Member bank reserves1 Deposits subject to Member bank reserves1 Deposits subject to reserve requirements2 reserve requirements2 Period Non­ Re­ Time Pri­ U.S. Non­ Re­ Time Pri­ U.S. Total bor­ quired Total and vate Govt, Total bor­ quired Total and vate Govt, rowed savings demand demand rowed savings demand demand 1962—Dec....... 20.22 19.99 19.74 187.4 80.1 101.8 5.5 20.73 20.43 20. 16 189.5 79.2 105.3 5.0 1963—Dec....... 20.96 20.64 20.51 201.5 92.4 104.3 4.8 21.48 21.15 20.94 203.7 91.3 107.9 4.5 1964—Dec....... 21.84 21.59 21.53 216.7 104.2 107.5 5.0 22.39 22.15 21.98 219. 1 103.0 111.3 4.8 1965—Dec....... 23.01 22.52 22.66 236.4 121.2 111.2 4.0 23.59 23.13 23.13 239.0 119.8 115.2 4.0 1966—Jan........ 23.14 22.70 22.79 238.0 121.8 111.7 4.5 23.63 23.22 23.27 241.1 121.4 116.4 3.3 Feb....... 23.22 22.76 22.84 238.7 122.1 111.6 5.0 23.08 22.60 22.71 238.3 122.4 111.4 4.5 Mar...... 23,27 22.67 22.90 239.8 122.8 112.7 4.3 23.02 22.47 22.71 239.1 123.7 111.5 4.0 Apr....... 23.53 22.88 23.12 242.9 124.8 113.5 4.7 23.41 22.79 23.05 242.4 125.4 114.4 2.7 May... . 23.54 22.88 23.16 243.9 126.2 112.9 4.8 23.37 22.65 23.00 243. 1 126.8 109.8 6.5 June 3... 23.52 22.84 23.17 244.2 126.3 113.5 4.3 23.42 22.75 23.10 243.9 127.0 111.5 5.5 July. .. . 23.73 22,96 23.32 246.0 128.0 112.4 5.6 23.73 22.96 23.32 246.5 128.4 111.0 7.2 Aug....... 23.33 22.66 23.03 245.4 129.0 1 12. 1 4.2 23.07 22.34 22.73 243.4 129.2 109.7 4.5 Sept...... 23.46 22.67 23.03 245.3 129.2 112.6 3.5 23.36 22.60 22.97 244.6 129.0 111.8 3.9 Oct....... 23.26 22.53 23.01 244.6 128.7 111.6 4.3 23.33 22.60 23.03 244.6 128.3 112.0 4.3 Nov...... 23.22 22.64 22.86 243.5 128.4 111.4 3.7 23.25 22.64 22.86 243.0 127.3 112.5 3.2 DecJ'.,, 23,24 22.65 22.94 244.3 129.4 112.0 2.9 23.82 23.27 23.43 247.0 127.9 116. 1 3.0 i Back data on member bank reserves adjusted to eliminate effects sonal loans were eliminated from time deposits for reserve purposes. of changes in reserve requirement percentages. Series reflect current per­ Time and total deposits were thereby reduced by an estimated $850 mil­ centage reserve requirements made effective Sept. 15, 1966. lion; this reduced member bank reserves by $35 million. 2 Deposits subject to reserve requirements include total time and sav­ Note.—For further explanation of these data, see announcement in ings deposits and net demand deposits as defined by Regulation D. Pri­ the October 1966 Bulletin, p. 1460. Back data for the period 1948 to date vate demand deposits include all demand deposits except those due to the may be obtained from the Banking Section, Division of Research and U S. Govt., less cash items in process of collection and demand balances Statistics, Board of Governors of the Federal Reserve System, Washing­ due from domestic commercial banks. ton, D.C. 20551. 3 Effective June 9, 1966, balances accumulated for repayment of per­ Averages of daily figures. 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JANUARY 1967 BANKS AND THE MONETARY SYSTEM 101 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date ury U.S. Government securities liabil­ Capital cur­ ities Total and Gold r o en u c t­ y Total Loans, Conil. O se t c h u e ­ r ca a p n i d ta l, de a p n o d s its m a i c s ­ c. st i a n n g d­ net t, 2 Total sa a v n in d g s R Fe e d se e r r v a e l Other rities 2 net currency co n u e n t ts, Banks banks 1947—Dec. 31................... 22 754 4,562 160,832 43,023 107,086 81,199 22,559 3 328 10,723 188.148 175,348 12,800 1950—Dec. 30................... 22,706 4'636 171'667 60,366 96,560 72,894 20,778 2’888 14'741 199,008 184 384 14,624 1963—Dec. 20................... 15,582 5’,586 333'203 189 433 103,273 69,068 33,552 653 40,497 354,371 323,251 31118 1965—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 Dec. 31................... 13,733 5’575 399'779 242^706 106,716 65,016 40,768 932 50^357 419^087 383^727 35,359 1966—Jan. 26.................... 13,700 5,600 394,800 238,600 106,100 65,200 40,000 900 50,000 414,100 377,600 36,500 Feb. 23............. 13,700 5,700 393,900 239,500 103^800 62,900 40,000 900 50,700 413,300 374,900 38,400 Mar. 30................... 13'600 5'700 397'700 244'100 102,500 61 ’,000 40’500 1 ,000 51,100 417,100 379,400 37,800 Apr. 27 ''................. 13.600 5,800 401 .'400 246’900 102^400 60.’ 800 40.700 '900 52J00 420,800 383,300 37,500 May 25 r................. 13.500 5.900 402 700 248.800 101 100 58 900 41,100 1.100 52,800 422,100 382 700 39 400 June 30................... 13.434 5.978 410,775 254.693 101.630 58’625 42.169 836 54,'452 430 J 87 391.731 38,454 July 27'................. 13.300 6.000 406.900 251.800 100,600 57,800 42.000 800 54,400 426.200 387,700 38,500 Aug. 31 r................. 1 3.300 6.000 408.800 252,400 102.100 58,800 42,500 800 54’400 428,200 387 600 40 500 Sept. 28r.................. 1 3.300 6.100 450.700 254.000 102.000 58’700 42.000 1 .300 54,700 430,000 387.800 42,200 Oct. 26’"................ 13.300 6.200 410.400 253.500 102.500 58,500 42.800 1 ,200 54'500 429,800 388.200 41,600 Nov. 30'".............. 13.200 6.200 412.200 254.200 104.400 59,200 43.900 1 .300 53,600 431 '600 389,000 42’600 Dec. "..................... 13.200 6.300 419.200 259.500 105.600 60,400 43.900 1 .200 54,100 438,700 396,700 42J00 DETAILS Oh DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted J Not seasonally adjusted Time U.S Government Date Total o b r u C e a t n u n s c i k r d y ­ s e j d u e m s D p a t a e o d e n d s ­ ­ d i t • s * Total o b r u C e a t n u n s c i k r d y ­ s e d ju e m s D p a t a o e d e n d s ­ ­ d i t s 4 Total b m C a e n o r k c m s ia ­ l 1 b s M a a v n u i k t n u s g a s l 5 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 ­ 6 , T h c i u r n o a e r g s l a y d h s s ­ ­ s b c a a o v a A n n r in n d t k g ! s , s B F A a .R n t k . s :’>47—Dec. 31.... 110.500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 i 950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1963—Dec. 20.... 153,100 31,700 121,400 158,104 33,468 124,636 155,713 110,794 44,467 452 1,206 392 6,986 850 1965—June 30... . 161,000 34,100 126,900 158,878 34,524 124,354 188,348 137,088 50,918 342 1,631 779 12,062 672 Dec. 31.... 167,100 35,400 131,700 175,314 36,999 138,315 199,427 146,433 52,686 309 1,780 760 5,778 668 1966—Jan. 26.... 167,200 36,000 131,200 169,500 35,500 134,000 200,700 147,600 52,800 300 1,600 800 4,200 700 Feb. 23.... 165,000 36,100 128,900 164,200 35,700 128,500 201,700 148,400 53,000 300 1 ,600 800 5,700 900 Mar. 30. ... 169,300 36,200 133,100 166,100 35,800 130,300 204,700 151,000 53,400 300 I ,700 900 5,400 500 Apr. 27r... 169,000 36,200 132,800 169.100 35,900 133,200 206.000 152.600 53,100 300 1 .700 900 5,300 300 Mav 25r... 165,500 36.300 129,200 163,500 36,200 127,300 207,700 154,200 53,200 300 1 ,700 1 ,000 8,000 700 June 30.... 167,600 36,300 131 ,300 168,089 37,128 130,961 208,647 154.798 53,657 192 1 ,943 1 ,049 11,237 766 July 27 r... 166,800 36,800 130,000 166,600 36,900 129.700 210,400 156,500 53,700 200 1 ,800 1,100 6,400 1,300 Aug. 31 r... 168.500 36.900 131,600 166.900 37,100 129,900 21 1,200 157,200 53,800 200 1 ,900 1,100 5,000 1 ,600 Sept. 28 . 167,200 36,700 130.500 166,100 36,800 129,300 21 1,300 156,900 54,200 200 1,800 1,100 6,200 I ,300 Oct. 26"’ . 167.900 37,200 130,700 168,600 37,100 131,500 210,800 156,300 54,400 200 1 ,800 1 ,200 4,900 800 Nov. 30 '" . 169,100 37,300 131,800 171,300 38,000 133,400 210,300 155,700 54,500 100 1 ,800 1 ,200 4,000 300 Dec. 28’’... 170,000 37.500 132.500 175,200 38,300 136.900 212,700 157,700 54,900 100 1 ,900 1 ,200 5.400 200 1 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits bilities. accumulated for payment of personal loans” were excluded from “Time 6 Reclassification of deposits of foreign central banks in May 1961 re­ deposits” and deducted from “Loans” at all commercial banks. These duced this item by $1,900 million ($1,500 million to time deposits and $400 changes resulted from a change in Federal Reserve regulations. These hy­ million to demand deposits). pothecated deposits are shown in a table on p. 105. 2 See note 2 at bottom of p. 105. Note.—For back figures and descriptions of the consolidated condition 3 Series begin in 1946; data are available only last Wed. of month. statement and the seasonally adjusted series on currency outside banks * Other than interbank and U.S. Govt., less cash items in process of and demand deposits adjusted, see “Banks and the Monetary System,” collection. Section 1 of Supplement to Banking and Monetary Statistics^ 1962, and 5 Includes relatively small amounts of demand deposits. Beginning with Bulletins for Jan. 1948 and Feb. 1960. Except on call dates, figures June 1961, also includes certain accounts previously classified as other lia­ are partly estimated and are rounded to the nearest $100 million. 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102 COMMERCIAL AND MUTUAL SAVINGS BANKS JANUARY 1967 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OE BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Secutities Total Interjank3 Other Cla a s n s d o d f a b te ank Total Lo 1 a ( n 2 s G U o .S vt . . Other a C ss a e s t h s 3 b ca i a l a l p i n i c a t i d i ­ ­ t e a s l Total 3 m D a e n ­ d Time Demand — Time r B i o n o g w r s ­ ­ c c T a o a o p u c t i n ­ t a a t l s l b N a b u o n e m f k r s ­ 2 counts4 U.S. Other 1,5 Govt. 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 45,613 227 10,542 14.553 1947—Dec. 31 6............. 134,924 43,002 81,199 10,72338,388 175,091 161,865 12,793 240 1,346 94,381 53,105 66 11,948 14,714 1965—June 30............. 342,138 231,737 62,60647,795 58,083 410,935 362,611 16,172 1 ,034 11,802 145,319 188,284 3,72634,015 14,295 Dec. 31........... 362,320246,946 65,01650,357 61 ,916435,483385,196 18,426 1 ,009 5,532 160,847 199,381 4,56434,935 14,309 1966—Jan. 26.............. 358,890243,740 65,18049,97055,420425,520372,85015,410 1 ,050 3,930 151,780200,680 6,17034,910 14,299 Feb. 23.............. 358,990245,440 62,90050,65056,560426,640372,700 15,830 1,060 5,440 148,730201,640 6,75035,020 14,299 Mar. 30.............. 361,710249,580 61,03051,10055,030428,100 374,580 15,240 1 ,070 5,120 148,470204,680 6,16035,180 14,306 Apr. 27 r............ 364,280251,380 60,79052,11057,280432,790380,280 15,560 1 ,090 5,030 152,700205,900 4,94035,380 14,306 May 25 r............ 365,550253,890 58,89052,77055,030431,960377,630 14,920 1 ,080 7,780 146,180207,670 5,61035,550 14,307 June 30............. 371,684258,607 58,625 54,45260,978444,807 391,731 17,034 1 ,099 11,005 153,907208,687 4,44436,071 14,307 July 27 ••............ 370,240258,030 57,83054,380 57,280439,560 382,560 15,480 1 ,090 6,180 149,370210,440 7,23035,830 14,307 Aug. 31 r............ 372,300259,150 58,78054,37056,360440,790382,900 15,930 1,130 4,720 149,830211,290 7, 17036,190 14,305 Sept. 28 r............ 373,370260,000 58,69054,68056,110441,490383,210 16,310 1 ,060 6,000 148,49021 1,350 7,05036,330 14,305 Oct. 26r".......... 372,700259,780 58,47054,450 57,780442,250384,150 16,020 1 ,010 4,720 151,490210,910 6,97036,420 14,294 Nov. 30r".......... 374,310261,520 59,15053,64061,700448,040 387,780 17,110 900 3,810 155,530210,430 7,95036,770 14,288 Dec. 28"............ 381,140 266,580 60,42054.14065,660458,740398,090 18,140 940 5,130 161.070212,810 8,27036,870 14,280 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. 31o............ 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1965—June 30.............. 287,723 188,641 56,853 42,229 57,063 354,553 311,632 16,171 1 ,032 11,796 145,266 137,366 3,68229,479 13,791 Dec. 31.............. 306,060201,658 59,54744,855 60,899 377,264 332,436 18,426 1 ,008 5,525 160,780 146,697 4,47230,272 13,804 1966—Jan. 26............. 302,190 198,130 59,63044,43054,500366,930319,970 15,410 1 ,050 3,930 151,730 147,850 6,17030,240 13,794 Feb. 23.............. 302,030 199,610 57,31045,11055,640367,790319,670 15,830 1,060 5,440 148,680 148,660 6,75030,310 13,794 Mar. 30.............. 304,350203,490 55,43045,43054,130368,840321,090 15,240 1,070 5,120 148,420 151,240 6,16030,440 13,801 Apr. 27 r............ 307,110205,180 55,45046,48056,430373.780 327,120 15,560 1,090 5,030 152,650 152,790 4,94030,670 13,802 May 25C.......... 308,120207,430 53,55047,14054,180372,710324,360 14,920 1,080 7,780 146,130 154,450 5,61030,790 13,802 June 30............. 314,238 211,980 53,503 48,755 60,013385,393 338,004 17,034 1 ,098 10,998 153,846 155,029 4,353 31,309 13,802 July 27'............ 312,380211,050 52,72048,61056,420379,790 328,840 15,480 1,090 6,180 149,320 156,770 7,2303!,090 13,801 Aug. 31 r............ 313,9802!1,820 53,73048,43055,530380,630 329,010 15,930 1,130 4,720 149,780 157,450 7,1703!,360 13,801 Sept. 28 r............ 314,920212,500 53,61048,810 55,260381,160 328,940 16,310 1,060 6,000 148,440 157,130 7,05031 ,510 13,790 Oct. 26r".......... 314,120211,980 53,54048,60056,980381,840 329,700 16,020 1 ,010 4,720 151,440 156,510 6,97031 ,630 13,789 Nov.30'".......... 315,570213,460 54,29047,82060,890387,450 333,260 17,110 900 3,810 155,480 155,960 7,95031,930 13,784 Dec. 28'’............ 321,940218,100 55,60048,240 64,750397,620343,100 18,140 940 5,130 161,010 157,880 8,27032,000 13,776 Member banks: 1941—Dec. 31.............. 43,521 18,021 19,539 5,961 23,123 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.............. 107,183 22,775 78,338 6,07029,845 138,304 129,670 13,576 6422,179 69,640 24,210 208 7,589 6.884 1947—Dec. 31.............. 97,846 32,628 57,914 7,304 32,845 132.060 122.528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1965—June 30.............. 237,328 158,832 43,39635,10050,198296,049259,743 15,355 851 10,806 120,077 112,654 3,455 24,323 6,235 Dec. 31............. 251,577 169,800 44,99236,785 52,814 313,384275,517 17,454 840 4,890 132,131 120,202 4,23424,926 6,221 1966—Jan. 26.............. 247,921 166,717 44,809 36,39547,366304,163 264,155 14,606 879 3,387 124,179 121,104 5,87324,896 6,212 Feb. 23.............. 247,810 168,112 42,732 36,96648,453 305,117 264,032 15,054 895 4,691 121,740 121,652 6,361 24,955 6,208 Mar. 30.............. 249,847 171,495 41,23037,12246,883 305,819 265,256 14,477 897 4,431 121,558 123,893 5,757 25,050 6,203 Apr. 27.............. 252,103 172,702 41,37038,031 49,323 310,342270,866 14,795 918 4,617 125,479 125,057 4,55425,239 6,199 May 25.............. 252,528 174,354 39,68638,48847,548 309,186268,286 14,198 916 6,858 120,016 126,298 5,11425,345 6,198 June 30............. 257,767 178,257 39,94239,56952,853 320,350280,339 16,164 928 9,979 126,572 126,696 3,985 25,678 6,194 July 27.............. 255,819 177,210 39,07239,53749,749315,068 271,464 14,630 923 5,523 122,416127,972 6,805 25,531 6,184 Aug. 31.............. 257,315 178,023 39,98439,30848,650315,639 271,521 15,047 963 4,202 122,874 128,435 6,63325,766 6,175 Sept. 28. ....... 257,809 178,421 39,80739,581 48,663 316,011 271,229 15,225 890 5,448 121,728 127,938 6,68425,843 6,171 Oct. 26.............. 256,797 177,818 39,65239,327 50,210 316,324271,653 15,120 843 4,309 124,263 127,118 6,571 25,942 6,163 Nov. 30.............. 258,041 179,106 40,355 38,580 53,564321,185 274,676 16,188 730 3,448 127,757 126,553 7,45926,189 6,158 Dec. 28"........... 263,673 183,095 41 ,618 38,96057,072 330,265 282,304 17,175 772 4,673 132,514 128,170 7,91426,223 6,156 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 7 1,592 542 1947—Dec. 316............ 18,641 4,944 11,978 1,718 886 19,714 17,763 1 3 14 17,745 1,889 533 1965—June 30.............. 54,415 43,096 5,753 5,566 1 ,020 56,382 50,980 1 7 53 50,918 43 4,536 504 Dec. 31............. 56,260 45,288 5,470 5,501 1,017 58,219 52,760 .......... 8 67 52,686 92 4,663 505 1966—Jan. 26.............. 56,700 45,610 5,550 5,540 920 58,590 52,880 50 52,830 4,670 505 Feb. 23.............. 56,960 45,830 5,590 5,540 920 58,850 53,030 50 52,980 4,710 505 Mar. 30.............. 57,360 46,090 5,600 5,670 900 59,260 53,490 50 53,440 4,740 505 Apr. 27.............. 57,170 46,200 5,340 5,630 850 59,010 53,160 50 53,110 4,710 505 May 25.............. 57,430 46,460 5,340 5,630 850 59,250 53,270 50 53,220 4,760 505 June 30............. 57,446 46,627 5,122 5,697 965 59,414 53,727 1 7 61 53,657 92 4,761 505 July 27.............. 57,860 46,980 5,110 5,770 860 59,770 53,720 50 53,670 4,740 504 Aug. 31.............. 58,320 47,330 5,050 5,940 830 60,160 53,890 50 53,840 .......... 4,830 504 Sept. 28.............. 58,450 47,500 5,080 5,870 850 60,330 54,270 50 54,220 .......... 4,820 504 Oct. 26.............. 58,580 47,800 4,930 5,850 800 60,410 54,450 50 54,400 .......... 4,790 505 Nov. 30.............. 58,740 48,060 4,860 5,820 810 60,590 54,520 50 54,470 .......... 4,840 504 Dec. 28"............ 59,200 48,480 4,820 5,900 910 61,120 54,990 .......... 60 54,930 4,870 504 For notes see p. 105. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 COMMERCIAL AND MUTUAL SAVINGS BANKS 103 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank •’ Other Cla a s n s d o d f a b te ank Total Lo 1 a > n 2 s G U o . v S t . . Oth 2 er a C ss a e s t h s 3 c c b o a i a l a l u p i n i c a t i n d i ­ t ­ e a t s s l 4 Total-’ m D a e n ­ d Time U. D S. e ma O n t d her Time 1 r B i o n o g w 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 m f k r s ­ Govt. Reserve city member banks: New York City:7 • 8 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 1965—-June 30................. 42,225 30,975 4,907 6,342 12,186 57,150 47,322 5,065 579 2,561 22,380 16,738 1,423 5,094 13 Dec. 31................. 44,763 33,125 5,203 6,435 11,876 59,517 49,270 5,225 522 1,271 24,265 17,988 1,987 5,114 12 1966—Jan. 26................. 43.410 32.404 4,852 6.154 10,141 56.377 45,598 4.429 566 618 21,707 18,278 2,104 5,101 12 Feb. 23................. 43,167 32,602 4.260 6,305 11,181 57.358 46,014 5.001 578 822 21,745 17,868 2,304 5,115 12 Mar. 30.................. 44,003 33,737 4,271 5,995 10,490 57,483 46,426 4,526 607 980 21,75618,557 2,169 5,096 12 Apr. 27.................. 44,238 33,427 4,426 6,385 10,952 58,020 48,131 4,804 621 1 ,401 22,475 18,830 1,200 5,126 12 May 25................ 44,233 34,316 3,942 5,975 10,733 57,972 47,202 4,564 626 1,400 21,613 18,999 1 ,708 5,148 12 June 30................. 46.453 35.796 4.466 6,19212,930 62,408 51,799 5,869 606 2,279 24,020 19,025 1,293 5,179 12 July 27.................. 44,996 34,789 4,087 6, 120 11,436 59,272 46,875 4,813 580 1,008 21,439 19,035 2,574 5,161 12 Aug. 31.................. 45,740 35,287 4,430 6,023 10,574 59,392 46,869 4,647 568 857 21,955 18,842 2,071 5,250 12 Sept. 28.................. 45,448 34,878 4,531 6,039 11,025 59,396 46,736 4,630 509 1,510 21,75618,331 2,093 5,206 12 Oct. 26.................. 44,547 34,411 4,242 5,894 11,263 58,598 46,194 4,788 490 1 ,030 22,309 17,577 1 ,944 5,228 12 Nov. 30.................. 44,325 34,510 4,303 5,512 13.112 60,367 47,230 5,000 416 1,182 23,348 17,284 2,554 5,303 12 Dec. 28"................ 46.591 35.976 4,834 5,781 14.085 63.536 49,411 5,789 429 1,229 24,627 17,337 3,496 5,295 12 City of Chicago: 7 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 1965—June 30............. 10,835 7,367 1,761 1,707 2,311 13,535 11,699 1,297 27 699 4,926 4,749 438 1,096 11 Dec, 31.................. 11,455 8,219 1 ,700 1,536 2,426 14,290 12,475 1 ,437 39 345 5,656 4,999 355 1,132 11 1966—Jan. 26.............. 10,976 7,722 1,753 1,501 2,274 13,675 11,514 1,214 32 121 5,257 4,890 638 1,125 11 Feb. 23.................. 10,940 7,877 1 ,533 1 ,530 2,444 13,857 11.606 1,174 34 223 5,100 5,075 613 1,122 11 Mar. 30 11,202 8,100 1,532 1 ,570 2,172 13,900 11,570 1,182 35 203 5,035 5,115 619 1,123 11 Apr. 27.................. 11,260 8,161 1 ,470 1,629 2,568 14,289 12,319 1 ,222 32 530 5,412 5,123 367 1,131 11 May 25................. 11,148 8,064 1,461 1,623 2,349 13,989 11,922 1,169 26 457 5,087 5,183 428 1,143 It June 30................. 11 .715 8,567 1 .585 1,564 2,322 14,490 12,385 1 ,230 43 680 5.249 5.184 521 1,152 11 July 27.................. 11,400 8,331 1 ,363 1,706 2,447 14,371 11,959 1,160 31 310 5,224 5,234 637 1,146 1 1 Aug. 31.................. 11,495 8,364 1,475 1 ,656 2,382 14,297 11,876 1,201 29 248 5,157 5,241 886 1,165 11 Sept. 28................. 11,538 8.366 1 ,480 1 ,692 2,506 14,455 11,751 1,159 26 358 5,148 5,060 1 ,033 1,156 11 Oct. 26.................. 11.298 8,193 1 .425 1 .680 2,641 14,368 11,671 1,193 27 405 5,239 4,807 830 1,166 11 Nov. 30.................. 11.374 8,282 1 ,526 1 .566 2.685 14,520 11,453 1 ,251 17 108 5,362 4,715 1,114 1,181 11 Dec. 28"................ 11.753 8,645 1 ,495 1.613 2.892 15,097 12.152 1 ,335 16 333 5,618 4,850 918 1,176 11 Other reserve city;7* H 1941—Dec. 31............. 15,347 7,105 6,467 1,776 8,518 24.430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24.655 9,760 2 2,566 359 1947—Dec. 31................. 36,040 13,449 20,196 2,396 13.066 49.659 46,467 5,627 22 405 28.990 11,423 1 2,844 353 1965—June 30................. 87,225 61,079 14,030 12,11619,864 110,063 97,418 7,168 173 4,325 42,971 42,781 1,271 8,774 179 Dec. 31.................. 91,997 65,117 14,354 12,52621,147 116,350 103,034 8,422 206 1,773 47,09245,541 1,548 9,007 171 1966—Jan. 26.................. 90,687 64,146 14,029 12,51219,313 (13,025 98,559 6,992 210 1,368 44,251 45,738 2,537 9,015 171 Feb. 23................. 90,857 65,012 13,159 12,68619,095 112,909 98,188 6,990 212 1,875 43,095 46,016 2,676 9,032 171 Mar. 30................. 91,071 66,041 12,259 12,771 18,555 112,776 98,661 6,900 184 1,610 43,11646,851 2,155 9,089 170 Apr. 27.................. 92,397 66,743 12,583 13,071 20,021 115,509 100,917 6,896 194 1 ,720 44,751 47,356 2,225 9,167 170 May 25.................. 92,355 66,817 11,832 13,70619,064 114,547 100,037 6,702 193 2,824 42,36547,953 1 ,990 9,200 170 June 30................. 93,831 67,779 12,182 13.86920,764 118,152 103,985 7,153 215 3,968 44,51948,131 1 ,756 9,297 170 July 27.................. 93,519 67,738 11,791 13,99020,070 116,873 101,489 6,795 238 2,242 43,71648,498 2,744 9,291 170 Aug. 31................. 93,994 68,102 12,085 13,807 19,608 117,027 101,572 7,261 292 1,562 43,727 48,730 2,600 9,361 170 Sept. 28................. 93,899 68,359 I 1 ,718 13,82219,590 116,951 101,100 7,056 281 1 ,921 43,26248,580 2,821 9,368 170 Oct. 26.................. 93,627 68,231 11,760 13,63620,426117,442 101,512 7,158 252 1,630 44,06648,406 2,999 9,387 170 Nov. 30................. 94,654 68,959 12,237 13,45820.732 118,882 102.611 7,918 223 1,074 45,21448,182 2,807 9,453 170 Dec. 28"................ 96.190 69,831 12.916 13,44322.305 122.007 105,902 7,934 253 1 ,731 46,94749,037 2,782 9,441 169 Country member banks:7’ H 1941—Dec. 31............. 12,518 5,890 4,377 2,250 6,402 19.466 17.415 792 30 225 10.109 6,258 4 1,982 6.219 1945—Dec. 31................. 35,002 5.596 26,999 2.408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31................. 36,324 10,199 22,857 3.268 10,778 47,553 44.443 1,056 17 432 28.378 14,560 23 2,934 6,519 1965—June 30................. 97,043 59,411 22,697 14,935 15,837 115,302 103,304 1,825 71 3,222 49,80048,386 323 9,359 6,032 Dec. 31.................. 103,362 63,338 23,735116,28817,366 123,227 110,738 2,371 74 1,501 55,11851,675 343 9,673 6,027 1966—-Jan. 26.................. 102,848 62,445 24,175l 16,228 15,638 121,086 108,484 1 ,971 71 1,280 52,96452,198 594 9,655 6,018 Feb. 23.................. 102,846 62,621 ■23,780 16,445 15,733 120,993 (08,224 1,889 71 1,771 51,80052,693 768 9,686 6,014 Mar. 30.................. 103,571 63,617 23,168 16,786 15,666 121,660 108,599 1,869 71 1 ,638 51,651 53,370 814 9,742 6,010 Apr. 27.................. 104,208 64,371 22,891 16,94615,782 122,524 109,499 1,873 71 966 52,841 53,748 762 9,815 6,006 May 25.................. 104,792 65,157 22,451 17,18415,402 122,678 109,125 1,763 71 2,177 50,951 54,163 988 9,854 6,005 June 30................. 105,768 66,115 21,709 17.94416,836 125,301 112,170 1.912 64 3,052 52,785 54,357 416 10,050 6,001 July 27.................. 105,904 66,352 21,831 17,721 15,796 124,552 111,141 1 ,862 74 1,963 52,03755,205 850 9,933 5 .991 Aug. 31................. 106,086 66,270 21,994 17,82216,086 124,923 111,204 1,938 74 1,535 52,035 55,622 1,076 9,990 5,982 Sept. 28.................. 106,924 66,818 22,078 18,028 15,542 125,209 111,642 2,380 74 1,659 51,56255,967 737 10,113 5,978 Oct. 26.................. 107,325 66,983 22,225 18,117 15,880 125,916 112,276 1,981 74 1,244 52,64956,328 798 10,161 5,970 Nov. 30.................. 107,688 67,355 22,289 18,04417,035 127,416 1 13,382 2,019 74 1,084 53,833 56,372 984 10,252 5,965 Dec. 28"................ 109,139 68,643 22,373 18,12317,790 129,625 1 15,839 2,117 74 1,380 55,32256,946 718 10,311 5,964 For notes see p. 105. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

104 COMMERCIAL AND MUTUAL SAVINGS BANKS JANUARY 1967 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— b C a l n a k s s a o n f d Securities as C s a e s is h -' b T i l l o i i a t t i ­ a e l s Interbank 3 Other r B o o w r­ ­ c T a a o p c t i ­ a ta l l N b o u e f m r ­ call date Total Loans and Total-1 Demand ings counts banks 11 2 G U o S v . t. Oth 2 er c c o a u a p c n i ­ t t a s l 2 m D a e n ­ d Time U.S. Other T 1 i ] m e 5 Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41.298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25.765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 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 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252.579 155,261 62,72334,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,49938,320 59,911 343,876 305,113 17,664 733 6,487 154.043 126,185 2,58027,377 13,486 1965—Dec. 31 . 303,593 200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146.084 4,325 29,827 13,540 1966—June 30.. 312.982211.588 53,111 48,282 59,489 383.445 337.146 16,761 1 .021 10,972 152,839 155,554 4, 126 30,873 13.552 National member: 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 (945—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 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,83661,288 1 ,704 13,548 4,615 1964—Dec. 31.. 151,406 96.688 33,405 21,312 34,064 190,289 169,615 10,521 211 3.604 84.53470,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,34725,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—June 30.. 181,934 124,722 28,891 28,321 36,769 225,441 197,792 10,609 514 6.767 88.61591.288 2.681 18,021 4,81 I State mem her: 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 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 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1 ,452 1965—Dec. 31 . 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1 ,606 39,598 34,680 1,607 7,492 1,406 1966—June 30.. 76,704 54,405 11,051 11,248 16.084 95,779 83,417 5,555 414 3.212 37,957 36.278 1 .304 7.656 1,383 Insured nonmember commercial: 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 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 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 j965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—June 30.. 54.355 32,461 13,178 8,716 0,636 62,237 55,937 597 93 993 26.267 27,987 141 5.207 7,359 Noninsured nonmem­ ber commercial: 1941 —Dec. 31.. 1 ,457 455 761 241 763 2,283 1,872 329 1,291 253 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. 3! 6. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20,. 1,571 745 463 362 374 2,029 1 ,463 190 83 17 832 341 93 389 285 1964—Dec. 31.. 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31.. 2,455 1 ,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1966—June 30.. 2,395 1 .542. 383 470 523 3,086 2,009 273 77 26 1 .007 626 227 425 249 Nonmember commercial: 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 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 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,64926,495 238 5,345 7,583 1966—June 30.. 56,750 34,003 13,561 9,186 7,160 65,323 57,946 870 171 1.019 27,27428,613 367 5,632 7,608 Insured mutual savings: 1941—Dec. 31.. 1,693 642 629 421 151 I ,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 i 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 1 2 12 12,192 1,252 194 1963—Dec. 20.. 41,664 32,300 4.324 5,041 722 43,019 38,657 , 1 5 292 38,359 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—Dec. 31.. 48,735 39,964 3,760 5,010 904 50,500 45,887 7 35945,520 91 3,957 329 1966—June 30.. 49,679 41,102 3.432 5, 145 854 51.450 46,681 .......... 1 6 41646,257 92 4,045 330 Noninsured mutual savings: 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. 316 5,957 1 ,384 3,813 760 211 6.215 5,556 1 2 5,553 637 339 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—Dec. 31.. 7,526 5,325 1 ,710 491 113 7,720 6,874 1 8 6,865 1 706 177 1966—June 30.. 7,768 5,525 1,690 552 1 11 7,964 7.046 1 28 7,017 716 175 For Notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 COMMERCIAL BANKS 105 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total 1,2 Loans1,2 Total 1,2 Loans1,2 U.S. Other 2 U S. Other 2 Govt. Govt. 1957—Dec. 31............................................................... 166.4 91.5 56.9 17.9 169.3 93,2 58.2 17,9 1958—Dec. 31............................................................... 181 2 95 6 65.1 20.5 1 84 4 97 5 66.4 20 6 1959—Dec. 31............................................................... 185.9 107 5 57.9 20,5 189 5 110 0 58.9 20 5 1960—Dec. 31............................................................... 194.5 113 8 59.8 20.8 198 5 116 7 61 0 20.9 1961—Dec. 30................................................................ 209.6 120.5 <•65 2 23 9 214 4 123 9 66 6 23 9 1962—Dec. 31............................................................... 227.9 134.1 64.5 29.2 233,6 137^9 66^4 29*3 1963—Dec. 31............................................................... 246.2 149.7 61.5 35.0 252.4 153.9 63.4 35 I 1964—Dec. 31.............................................................. 267.2 167.4 61.1 38.7 273.9 172.1 63.0 38.8 1965—Dec. 31............................................................... 294,4 192.0 57.7 44.8 301.8 197.4 59.5 44.9 1966—Jan. 26............................................................... 297.4 194.5 58.0 44.9 296.8 192.7 59.6 44,4 Feb. 23................................................................ 297.5 196.2 55.9 45.4 296.0 193.6 57. 3 45.1 Mar. 30.............................................................. 300.3 198.6 56.0 45.7 298,5 197,6 55.4 45.4 Apr. 27.............................................................. 302.9 200.8 55.9 46.2 301.7 199.8 55.5 46. 5 May 25............. .............................................. 304.9 202.3 55. 1 47.4 302.4 201.7 53.6 47. 1 June 30. ............................................................. 307.7 204.0 55. 1 48.6 310.1 207.9 53.5 48.8 July 27^.............................................................. 309.2 206.4 54.4 48.5 307. 1 205.8 52.7 48.6 Aug. 3D’........................................................... 3 io. 8 206.6 56. 1 48.1 307.7 205.5 53.7 48.4 Sept. 28p.......................................................... 308.7 206.1 54.3 48.3 309.3 206.9 53.6 48.8 Oct. 26»............................................................. 308. 1 207.3 52.4 48.4 308.4 206.3 53.5 48.6 Nov. 30*’............................................................. 308.4 207.3 52.9 48.3 309.4 207.3 54.3 47.8 Dec. 31^4............................................................ 310.7 208.2 54.2 48.3 318.5 214.0 56. 1 48.4 1 Adjusted to exclude interbank loans. •’ December 31, 1966 estimated. 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated for payment of personal loans were deducted as a result of a change in Note.—-Data are for last Wed. of month except for June 30 and Dec. Federal Reserve Regulations. 31; data are partly or wholly estimated except when June 30 and Dec. 31 Beginning June 30, 1966, CCC certificates of interest and Export­ are call dates. For back data, see July 1966 Bulletin, pp. 9 5 2-5 5. For Import Bank portfolio fund participation certificates totaling an estimated description of seasonally adjusted series, see July 1962 Bulletin, pp. $1 billion are included in “Other securities’’ rather than “Other loans.” 797-802. DEPOSITS ACCUMULATED AT COMMERCIAL BANKS FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) June 30, June 30, Class of bank 1966 Class of bank 1966 All commercial....................................................................... 1,150 All member (cont.) Insured.............................................................................. 1,150 Other reserve city............................................................... 338 National member............................................................... 678 Country............................................................................... 532 State member...................................................................... 193 All non member...................................................................... 280 AU member............................................................................ 870 Insured ................................................................................ 279 New York City.................................................................... Noninsured......................................................................... I City of Chicago................................................................... Note.—These hypothecated deposits are excluded from “Time depos­ These deposits have not been deducted from “Loans” and “Time de­ its” and “Loans” at all commercial banks beginning with June 30, 1966, posits” in the table on p. 104, or from “Loans” and “Time deposits, as follows: in the tables on pp. 101-03; in the table at the top of this I PC” in the tables on pp. 106-07. page; and in the tables on pp. 108-11 (consumer instalment loans). Details may not add to totals because of rounding; also, mutual savings These changes resulted from a change in the Federal Reserve regulations. banks held $166,000 of these deposits on June 30, 1966. (See June 1966 Bulletin, p. 808.) Notes to tables on pp. 102-104. 1 See table (and notes) above, Deposits Accumulated at Commercial « Beginning with May 18, 1 964, one New York City country bank with Banks for Payment of Personal Loans. loans and investments of $1,034 million and total deposits of $982 million 2 Beginning June 30, 1966, loans to farmers directly guaranteed by was reclassified as a reserve city bank. Beginning with May 13, 1965 CCC were reclassified as securities, and Export-Import Bank portfolio (Toledo, Ohio), reserve city banks with total loans and investments of fund participations were reclassified from loans to securities. This reduced $530 million and total deposits of $576 million were reclassified as country “Total loans” and increased “Other securities” by about $1 billion. banks. “Total loans” include Federal funds sold, figures for which arc shown Note.—-Data are for all commercial and mutual savings banks in the separately for commercial banks on the following two pages. United States (including Alaska and Hawaii, beginning with 1959), For 3 Reciprocal balances excluded beginning with 1942. definition of “commercial banks” as used in this table, and for other 4 Includes other assets and liabilities not shown separately. banks that are included under member banks, see Note, p. 643, May 1964 5 Figures for mutual savings banks include relatively small amounts Bulletin. of demand deposits. Beginning with June 1961, also includes certain Comparability of figures for classes of banks is affected somewhat by accounts previously classified as other liabilities. changes in F.R. membership, deposit insurance status, and the reserve & Beginning with Dec. 31, 1947, the series was revised; for description, classifications of cities and individual banks, and by mergers, etc. see note 4, p. 587, May 1964 Bulletin. Data for national banks for Dec. 31, 1964 have been adjusted to make ? Regarding reclassification of New York City and Chicago as reserve them comparable with State bank data. cities, see Aug, 1962 Bulletin, p. 993. For various changes between Figures are partly estimated except on call dates. reserve city and country status in 1960-63, see note 6, p. 587, May 1964 For revisions in series before June 30, 1947, see July 1947 Bulletin, Bulletin. pp. 870-71. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

106 commercial banks JANUARY 1967 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To purchasing U.S. Government Total or carrying financial securities $ Class of loans 1 Fed­ Com­ securities institutions Other, State bank and and eral mer­ Agri- Real to and Other call date invest­ funds Total cial cul- es­ in­ Other local secur­ ments 2 .1 and tur- To tate di­ govt, rities •* in­ al 4 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o er s Banks Others uals2 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 .......... 38,057 18,167 1,660 830 1,220 115 9,393 5,723 947 69,221 9,982 6,03453,205 5,2763,729 1963—Dec. 20.. 254,162 156,00652,9477,4705,3532,509 3,605 9,47939,05634,5504,03463,196 12,71722,41528,06529.7865,173 1964—Dec. 3!.. 277,376 175,58960,2177,505 5,5422,843 3,491 10,91343,67539,8095,15262,991 13,377 19,03930,574 33,533 5,263 1965—Dec. 31.. 306,060 2,103 199,555 71,437 8,2125,258 3,231 2,158 13,29149,30045,4685,215 59,547 n.a. n.a. n.a. 38,6556,201 1966—June 30.. 315,388 2,129211,001 77,245 8,488 5,3503,283 1,971 13,93351,89947,6825,227 53,503 n.a. n.a. n.a.40,6128,142 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.. 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,91221,526 16,045 51,342 3,873 3,258 1947—Dec. 31,. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1963—Dec. 20.. 252,579 155,261 52,743 7,4445,321 2,476 3,594 9,41538,861 34,383 4,015 62,723 12,601 22,31627,80629,559 5,035 1964—Dec. 31.. 275,053 174,23459,7467,4825,355 2,794 3,419 10,81243,43639,627 5,11262,499 13,275 18,93930,285 33,2945,026 1965—Dec. 31.. 303,593 2,064 198,045 70,887 8,191 5,088 3,172 2,093 13,14849,02645,2905,155 59,120 13,13413,233 33,858 38,419 5,945 1966—June 30.. 312,982 2,061 209,527 76,725 8,470 5,222 3,222 1 ,929 13,77351,59947,5065,152 53,111 9,174 12,389 32,70940,368 7,914 Member, total: 1941—Dec. 31.. 43,521 .......... 18,021 8,671 972 594 598 39 3,494 3, 653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1 ,900 1,05778,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 1 13 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1963—Dec. 20.. 210,127 131,71247,403 4,6595,1242,136 3,439 8,87531,00927,908 3,765 49,342 9,339 18,07221,93225,210 3,864 1964—Dec. 31.. 228,497 147,69053,7174,643 5,1422,411 3,250 10,17934,58732,0244,82448,717 9,932 15,23823,54828,374 3,715 1965—Dec. 31.. 251,577 1,861 167,93963,979 5,099 4,915 2,714 2,008 12,47538,98836,4184,83244,992 9,441 10,10626,36732,588 4,198 1966—June 30,, 258,638 1,772 177,355 69,357 5,2445,0362,717 1 .86! 13,06840,86237,933 4,80839,942 6,384 9,11825,42633.8965,672 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 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 ill 564 238 11,972 1,642 558 9,772 638 604 1963—Dec. 20.. 34,827 23,577 12,332 262,677 569 1,007 2,247 1,968 2,257 1,068 6,154 1,858 2,341 1,955 4,653 442 1964—Dec. 31.. 39,507 27,301 14,189 302,742 623 1 ,179 2,615 2,546 2,654 1,371 6,178 1,958 1,972 2,248 5,579 449 1965—Dec. 31.. 44,763 412 32,713 18,075 202,866 665 1,010 3,471 3,139 2,928 1,340 5,203 1,538 987 2,876 5,879 556 1966—June 30.. 46,453 134 35,66219,815 163,305 647 992 3,898 3,411 2,965 1,413 4,466 1 ,427 750 2,473 5,361 831 City of Chicago: 1941—Dec. 31.. 2,760 954 732 6 48 52 1 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1 ,418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 1963—Dec. 20.. 9,615 6,220 3,378 40 497 181 242 751 401 594 318 1,705 389 599 717 1,361 329 1964—Dec. 31.. 10,562 7,102 3,870 24 510 203 227 948 465 669 430 1,873 564 397 911 1,392 195 1965—Dec. 31.. 11,455 72 8,147 4,642 32 444 244 188 1,201 577 762 316 1,700 542 273 961 1,400 137 1966—June 30.. 11,715 1 10 8,457 4,983 35 394 254 147 1,293 592 744 276 1,585 429 284 954 1,326 238 Other reserve city: 1941—Dec. 31.. 15,347 .......... 7,105 3,456 300 114 194 4 1,527 1.508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 38729,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31,. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1963—Dec. 20.. 78,370 51,891 18,862 1,219 1,243 891 1,224 4,28612,52511,106 1,462 16,686 2,697 6,600 7,390 8,810 981 1964—Dec. 31.. 84,670 57,555 21,102 1,095 1,060 986 1,134 4,88713,611 12,802 1 .977 16,326 3,200 5,662 7,463 9,871 918 1965—Dec. 31.. 91,997 471 64,64624,7841,206 9541,108 635 5,82015,05614,305 1,999 14,354 2,972 3,281 8,432 11,504 1,022 1966—June 30.. 94,169 526 67,591 26,903 1,255 899 1,123 574 5,911 15,62914,672 1,857 12,182 1 ,720 2,520 8,344 12,361 1,509 Country: 1941—Dec. 31.. 12,518 .......... 5,890 1,676 659 20 183 2 1,823 1.528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 35926,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1963—Dec. 20.. 87,316 50,023 12,831 3,374 708 496 966 1,591 16,11413,951 91724,797 4,395 8,531 11,871 10,385 2,111 1964—Dec. 31.. 93,759 55,733 14,5563,493 830 599 710 1,73017,96415,899 1,04724,341 4,209 7,20612,925 11,531 2,154 1965—Dec. 31.. 103,362 905 62,433 16,4783,840 650 698 174 1,98320,21718,423 1,17723,735 4,389 5,565 14,098 13,8052,483 1966—June 30.. 106,300 1,002 65,645 17,6573,938 437 693 150 1,96621,23019,552 1,261 21,709 2,808 5,563 13,655 14,8493,095 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2 2,266 1,061 109 11,318 2,179 1,219 7,920 1,078 625 1963—Dec. 20.. 44,035 24,295 5,5442,811 229 373 166 604 8,047 6,643 269 13,854 3,378 4,343 6,133 4,576 1,309 1964—Dec. 31.. 48,879 27,899 6,5002,862 400 432 241 733 9,088 7,786 328 14,273 3,445 3,801 7,026 5,159 1,548 1965—Dec. 31.. 54,483 242 31,616 7,4583,113 343 516 151 81710,312 9,050 383 14,555 n.a. n.a. n,a. 6,067 2,003 1966—June 30.. 56,750 357 33,646 7,888 3,244 314 566 109 85611,037 9,749 420 13,561 n.a. n.a. n.a. 6,7162,470 1 Beginning with June 30, 1948, figures for various loan items are 4 Beginning with June 30, 1966, loans to farmers directly guaranteed shown gross (i.e., before deduction of valuation reserves); they do not by CCC were reclassified as “Other securities,” and Export-Import Bank add to the total and are not entirely comparable with prior figures. Total portfolio fund participations were reclassified from loans to “Other se­ loans continue to be shown net. curities.” This increased “Other securities” by about $1 billion. 2 See table (and notes) entitled Deposits Accumulated at Commercial s Beginning with Dec. 31, 1965, components shown at par rather than Banks for Payment of Personal Loans, p. 105. at book value; they do not add to the total (shown at book value) and are 3 Breakdowns of loan, investment, and deposit classifications are not not entirely comparable with prior figures. available before 1947; summary figures for earlier dates appear in the For other notes see opposite page. preceding table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 COMMERCIAL BANKS 107 RESERVES AND LIABILITIES BY CLASS OF BANK (fn millions of dollars) Demand deposits. Time deposits b c C a a l n l a l k s d s a a o n te f d s B F e w R a r . i v n R e t e h k ­ . s s r C c e a o n n u i c d r n y ­ b m a a w B d n e n a c i o s k t l e t ­ h ­ i s s c 6 ju p m D s o d a a t d s e e e n i - ­ ­ d t d s ? D In o t ­ erba F nk or­ G U o .S v . t. S g l a o o t n c a v d a t t e l . C c o a f e e i f n e r r f d d i s t ­ i ’ ­ I PC I b n a t n e k r­ G P U S a o o a n . s S v v d t ­ t . a , l S g l a o o t n c a v d a t t e l . I PC2 B in o g r s - c C o a t a u a c p n l ­ i t ­ s mestic6 eign8 checks, ings etc. Total:’ 1947—Dec. 31. 17,796 2,216 10,216 87,123 11,362 1,430 1.343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1963—Dec. 20. . . . 17,150 4,048 12.312 126,579 14,048 I ,218 6,729 (2,256 4,494 124,784 526 269 7,908 102,8863,66425,677 1964--Dec. 31. . .. 17,581 4,532 15,111 134,671 16,369 1,569 6,5(0 (3,519 5,970 135.694 819 272 9,812 116,635 2,67927,795 1965—Dec. 31.... 17,992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 1,008 263 12,186 134,2474,47230,272 1966—June 30.... 18,094 5,234 13,548 133,535 15,488 1,546 (0,998 14,931 6,692 132,222 1,098 231 12,634 (43,315 4,353 31,309 AU insured: 1941—Dec. 31. . .. 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 (03 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 LU 826 33,946 61 9,734 1963—Dec. 20.. .. 17,150 4,033 11,984 125,615 (3,900 1,177 6,712 12,175 4,429 124,098 443 269 7,853 102,6003,571 25,277 1964—Dec. 31... . 17,581 4,515 14,613 133,336 (6,210 1,454 6,487 13,423 5,856 134,764 733 272 9,766 116,147 2,58027,377 1965—Dec. 31. 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,325 29,827 1966—June 30.... 18,094 5,219 13,093 132,3(1 15,304 1,457 10,972 14,827 6,603 131,409 1 ,021 231 12,584 142,7384,12630,873 Member, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31. . . . 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31 .... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1963—Dec. 20.... 17,150 3,131 7,359 (02,816 13,378 1,140 5,986 9,376 4,055 104,130 382 240 6,364 84,3263,499 21,054 1964—Dec. 31 . 17,581 3,490 9,057 108,324 15,604 1,403 5,838 10,293 5,368 112,878 664 239 8,012 95,425 2,481 22,901 1965—Dec. 31... . 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 236 10,041 109,9254,23424,926 1966—June 30,... 18,094 4,044 8,148 106,472 14,752 1,412 9,979 11,445 6,095 109,032 928 204 10,334 117,028 3,985 25,678 New York City: 1941—Dec. 31 . 5,(05 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31.... 4,0(5 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31. . .. 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1963—Dec. 20.... 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 76 449 10,9201,438 3,984 1964—Dec. 31. 3,730 278 180 17,729 4,112 976 1,486 441 2,940 20,515 436 74 677 13,5341,224 4,471 1965—Dec. 31.... 3,788 310 122 18,190 4,191 1,034 1,271 620 2,937 20,708 522 84 807 17,097 1,987 5,114 1966—June 30.... 3,356 313 235 16,556 4,877 992 2,279 815 3,713 19,491 606 65 841 18,1181,293 5,179 City of Chicago: 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31. . . . 942 36 200 3,(53 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31.,.. 1,070 30 175 3,737 1,196 21 72 285 63 3,853 ..........2 9 902 ........ 426 1963—Dec. 20.... 1,019 49 98 4,144 1,169 43 395 275 112 4,500 17 6 185 3,595 255 996 1964—Dec. 31.,., 1,006 55 150 4,294 1,389 59 396 312 122 4,929 22 5 213 4,361 204 1,056 1965—Dec. 31.... 1,042 73 151 4,571 1,377 59 345 328 126 5,202 39 4 210 4,785 355 t ,132 1966—June 30.... 939 77 235 4,251 1,171 59 680 336 131 4,781 43 2 329 4,852 521 1,152 Other reserve city: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31. ... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31. . .. 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 I(,045 1 2,844 1963—Dec. 20.... 7,587 935 2,105 35,859 6,958 267 2,212 3,144 1,034 39,281 95 72 2,950 31,982 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 77 3,840 35,728 841 8,488 1965—Dec. 31 ... . 7,700 1,139 2,341 37,703 8,091 330 1,773 3,532 1,180 42,380 206 71 4,960 40,510 1,548 9,007 1966—June 30..,. 8,102 1,238 2,196 35,856 6,843 3(0 3,968 3,513 1,168 39,838 215 64 5,093 43,313 1,756 9,297 Country: 1941—Dec. 31. .. . 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31. .. . 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31 . ... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1963—Dec. 20.... 4,919 1,884 5,060 46,049 1,764 29 1,960 5,590 790 41,877 56 86 2,778 37,829 390 8,377 1964—Dec. 31 ... . 5,165 2,092 6,295 49,253 2,141 41 1,760 6,031 1,068 45,298 71 83 3,282 41,803 213 8.886 1965—Dec. 31.... 5,463 2,235 6,344 52,104 2,317 54 1,501 6,360 1,143 47,615 74 77 4,064 47,534 343 9,673 1966—June 30.... 5,697 2,415 5,481 49,810 1,860 52 3,052 6,781 1,082 44,922 64 74 4,071 50,745 41610,050 Nonmember: 3 1947—Dec. 31.... 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1963—Dec. 20.. .. 917 4,953 23,763 671 78 743 2,880 438 20,654 144 29 1,545 18,560 165 4,623 1964—Dec. 31.... 1,042 6,054 26,348 765 166 672 3,227 602 22,816 156 33 1 ,800 21,210 198 4,894 1965—Dec. 31.... 1,093 6,343 28,367 817 155 635 3,404 592 24,653 168 27 2,145 24,322 238 5,345 1966—June 30.... ............ 1,190 5,400 27,063 736 134 1,019 3,486 598 23,190 171 27 2,300 26,286 367 5,632 6 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 7 Through I960 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 8 For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 1964, have been adjusted to make them comparable with State bank data. Note.—Data are for all commercial banks in the United States. (For For other notes see opposite page. definition of "commercial banks’* as used in this table and for other banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

108 WEEKLY REPORTING BANKS JANUARY 1967 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) 1 Loans- For purchasing or carrying securities To financia institutions Loans J Total Wednesday m i l n a o e v n a n e d n t s s s t ! ­ s v n e t a e r i r l o t e v u ­ n o e a s f ­ i C n m t a c r d o n i i e a u m a d r l l s ­ ­ ­ A t c u u g r l r a ­ i l ­ G c U a T s u o n e . o r v S ­ d i t . ­ b , d r e o O a k c l s u e t e e h r r r “ s i s e - r G c U s u T o e . r S v o ­ i t . ­ , o th O c e s u t r e h s r ­ i e ­ r F ei o g r n B ­ ank c m D s t o i e o m c s ­ ­ ­ f P s i a a n e N n l a r e d s o n s , . n ba O n t k her e R st e a a t l e s i C m n u s m o e ta n n e l t ­ r ­ g e F o i o g v n t r s ­ . ot A h l e l r V se t a i r r o e l v u n ­ e a s ties ties ties ties m ci e a r l ­ c e o tc s . ., Large banks— Total 1965 Dec. 1.......... 178,244 125,972 51,614 1,761 978 3,454 93 2,175 I ,646 2,656 5,540 5,042 25,473 28,015 2,475 176,204124,109 51,502 1 ,757 555 3,273 101 2; 164 1,645 1,926 5,274 4,923 25.510 27,951 2,472 15.......... 180,629 128,222 52.493 I '778 1 ,022 3,686 101 2,239 1 ,644 3,022 6,179 4,933 25,554 28.038 2,467 180,796 127,954 53,037 I ,784 624 3,586 (02 2,254 1,656 2,397 6,281 4,958 25,578 28,162 2 >65 29.......... 181.789 128,978 5.1,112 1,757 663 3'613 108 2,249 1'625 3,191 6,233 4,954 25'575 28,344 2 >46 1966 184,237 134,659 59,676 1,773 675 2,803 102 2 123 f ,501 2,673 6,199 4,441 27,446 16.092 1,159 10,775 2,779 9.......... 184,036 115,106 59 >86 1 ,777 688 2,788 96 2; 107 I ’ 499 3,470 5 792 4,446 27.459 16,080 l 190 10,707 2,779 16 184,354 135 >36 60,192 1 ,776 581 2,720 94 2,114 1,516 3,542 r5,900 4,386 27,512 '15,961 1 i 200 10,715 2,773 23 183,148 134,396 59,934 1 ,778 268 2,648 96 2,121 1,519 3,373 r5,7O8 4,376 27,516 ’15,967 1 230 10.633 2,771 10......... 184,809 134,986 59,938 1 >78 465 2,642 93 2,1 35 1 ,520 3,436 5>92 4,358 27,491 15,945 1.193 10,764 2,764 1966 Dec. 7......... 184.093 134,349 59,921 1.780 55 1 2.644 92 2,112 1 ,561 3,210 5,733 4,298 27,447 15.950 1,180 10,632 2,762 14.... : 186,250 135,706 60,223 1,808 841 2,783 72 2,097 1 ,532 3,437 6,039 4,306 27,464 15.912 1,178 10,767 2,753 21 ,, 188,484 137,225 60,969 1,821 729 3,068 74 2,113 1,554 3,266 6,742 4,321 27,430 15,854 1.617 10,861 2,744 28.......... 189,409 137,999 60,609 1 >33 1,137 3,359 76 2,114 1 ,578 3,428 6.919 4,329 27,434 15,857 1.178 10,871 2,723 New York City 1965 Dec. 1.......... 41,489 30,751 16.595 21 587 2,082 22 622 872 689 1,771 1,145 2,905 4,048 608 8......... 40,897 30,165 16,575 23 306 1,922 23 630 871 728 1 >27 1,130 2.930 4,009 609 15.......... 42,841 31 ,81 1 17,015 539 2,266 20 652 874 945 1 >91 1,136 2,923 4,031 603 22.......... 42,735 31,483 17,228 23 354 2,181 21 653 891 612 1,993 1,124 2,936 4,067 600 29.......... 43,077 31.905 17,298 22 361 2,211 22 650 852 946 2,016 1,115 2,927 4’081 596 1966 Nov. 2.......... 42,481 33,125 19,958 15 369 1,527 32 570 818 433 2,005 1 ,063 3,263 1,262 761 1 ,813 764 9......... 42,334 33,241 19,998 16 266 1 ,535 33 564 808 936 1,723 1,070 3,254 I , 259 789 1 .754 764 16......... 42,278 33,341 20,153 15 202 1,464 30 564 810 1 ,025 1 ,732 1 ,047 3,258 1 ,255 796 1 ,754 764 23......... 41,899 33,066 20,109 16 89 1,369 29 563 811 1 ,088 1 ,654 1,047 3,251 1 ,254 829 1,722 765 30......... 42,490 33.242 20,150 16 260 1,342 29 562 824 874 1,814 1,048 3,249 1,247 804 1 ,784 761 1966 Dec. 7.......... 42,333 32,947 20,162 16 216 1,337 29 560 844 851 I ,675 1 ,036 3,252 1,242 789 1,699 761 14. 43,166 33,628 20,249 16 352 1,417 II 554 816 1,168 1 >9! 1 >30 3,253 1,238 786 l>07 760 21.......... 44,059 34,287 20,455 16 .137 1,702 11 552 828 I >06 2,138 1 >55 3 >01 1 >36 776 1,731 757 28......... 44.431 34,466 20,239 16 643 2,003 it 552 843 698 2,178 1,054 3,194 1,237 788 1 >59 749 Outside New York Cily 1965 Dec. 1.......... 136,755 95,221 35,019 1 ,740 391 1 ,372 71 1,553 774 1,967 3,769 3,897 22,568 23,967 1,867 8.......... 135,307 93,944 34,927 1,734 249 1 ,351 78 1,534 774 1,198 3,647 3,793 22,580 23,942 1 >63 15......... 137,788 96,411 35,478 1 >56 483 1 ,420 81 1,587 770 2,077 4 >88 3,797 22,631 24,007 I >64 138,061 96,471 35,809 I >61 270 I >05 81 1,601 765 1,785 4,288 3,834 22,642 24,095 1 ,865 29.......... 138,712 97,073 35,814 I >35 302 1 ,402 86 1,599 773 2,245 4,217 3,839 22,648 24,263 1 >50 1966 Nov. 2.......... 141,756 101,534 39,718 1 ,758 306 1,276 70 I ,553 683 2,240 4,194 3,378 24,183 14,830 398 8,962 2,015 9.......... 141>02 101'865 39,788 1 ,761 422 1,253 63 I >43 691 2,534 4,069 3,376 24 >05 14,821 401 8,953 2,015 16......... 142,076 102,095 40,039 1 >61 379 1 >56 64 1 ,550 706 2,517 '4,168 3,339 24,254 '14,706 404 8,961 2,009 23. 141,249 101,330 39,825 1 ,762 179 1 >79 67 1 ,558 708 2,285 '4,054 3 >29 24,265 r14,7l3 401 8’911 2,006 30.......... 142',319 101,744 39,788 1,762 205 1 ,300 64 1 ,573 696 2 >62 4,178 3,310 24,242 14,698 389 8,980 2,003 1966 141,760 101,402 39,759 1 ,764 335 1,307 63 1,552 717 2,359 4,058 3,262 24,195 14,708 391 8,933 2,001 14 143,084 102,078 39>74 1 >92 489 1 ,366 61 1 ,543 716 2,269 4,248 3,276 24,211 14>74 392 9,060 1,993 21 144,425 102,938 40^514 1 ,805 392 t, 366 63 1 ,561 726 2,260 4,604 3,266 24,229 I4>18 391 9,130 1,987 28.......... 144,978 103,533 40,370 1 ,817 494 1 .356 65 1 ,562 735 2,730 4,741 3,275 24,240 14,620 390 9,112 1,974 For notes see p. Ill, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 WEEKLY REPORTING BANKS 109 ASSETS ANO LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with— Obligations Cer- No m te a s tu an ri d n g b — onds o p s f o u a l b S i n d t t d i a i c v t a e . l s O co t s h e rp e c a u r , n r s b i d t t o o ie n c s d k s s , Total p C i r t o e i a n m c s e h s s s Do- For- r C e a n n u c d r y ­ se w r R v it e e h ­ s a o s A t s h e l e l t r s Wednesday Total Bills c t a if t i e - s collec- m ba e n st k ic s b e a i n g k n s coin B F a .R nk . s W 1 i i y n th r. ­ 5 1 y t r o s. 5 A y ft r e s r . ra w T n a a t x r s ­ 3 o A th l e l r p C a e r o r t f i t c if i . ­ O s ri e t t c i h e u e s ­ r tion pation'’ Large banks—• Total 1965 26,514 4,855 4,267 10,182 7,210 25,758 38,769 18,562 4,060 20! 2,427 13,519 7,210 26,131 4,450 4,260 10,189 7,232 25,964 36,400 16,558 4,092 207 2,486 13,057 7’141 8 26,332 4,650 4,188 10,220 7,274 26,075 41,279 20,651 4,294 197 2,544 13,593 7’175 15 26,666 5,018 4,153 10,188 7,307 26,176 39,962 19,415 4,168 208 2,549 13,622 7,177 26,638 5,047 4,181 10,087 7,323 26,173 39,040 17,843 4,045 205 2,650 14,297 7,196 29 1966 22,810 3,196 671 3,321 9,181 6,441 2,638 20,928 933 2,269 40,639 18,768 3,936 205 2,452 15,278 7,686 Nov. 2 22,482 2,888 659 3,337 9,160 6,438 2,415 20,870 933 2,230 40,697 20,562 3,946 241 2,542 13,406 7,801 9 22,507 2,606 276 3,194 10,397 6,034 2,266 20,974 924 2,247 42,719 21,496 4,265 223 2,533 14,202 7,697 16 22,512 2,673 271 3,218 10,318 6,032 2,207 20,897 916 2,220 39,933 19,724 3,957 227 2,483 13,542 7,619 23 23,438 3,583 266 3,236 10,333 6,020 2,227 20,950 892 2,316 42,070 19,965 4,408 237 2,755 14,705 7,897 30 23,223 3,382 263 3,236 10,328 6,014 2,259 21,147 869 2,246 39,044 18,222 3,955 231 2,649 13,987 7,836 Dec. 7 24,010 4,070 265 3,287 10,337 6,051 2,250 21,130 889 2,265 42,007 20,898 3,980 240 2,885 14,004 7,878 14 24,490 4,470 307 3,378 10,282 6,053 2,354 21,194 934 2,287 42,589 20,215 4,244 231 2,822 15,077 7,847 21 24,750 4,674 308 3,392 10,281 6,095 2,304 21,106 923 2,327 45,008 21,926 4,452 248 3,031 15,351 7,850 28 New York City 1965 4,753 1,213 631 t ,447 1 ,462 5,985 10,770 6,557 154 86 320 3,653 2,706 4,582 I ,045 607 1 ,454 1 ,’476 6,150 9,882 5,773 1 43 89 359 3,518 2,706 8 4,826 1 '268 585 1 '479 1 ,494 6'204 11,740 7,500 195 81 362 3,602 2,647 15 5,028 1 ,477 600 1 ’467 1 ,'484 6,224 11,146 7,077 139 93 346 3,491 2,693 ■>2 4,945 l',377 596 1 ’,473 1 ’ 499 6,227 10,861 6,360 171 86 350 3,894 2,653 29 1966 4,075 1 ,056 191 507 I ,000 1,321 627 3,846 224 584 11,208 6,192 164 78 325 4,449 2,727 Nov. 2 3,930 898 194 506 1 ,004 1,328 543 3,826 223 571 12,441 8,374 152 108 354 3,453 2,845 9 3,779 738 22 445 1,265 1 ,309 457 3,903 224 574 11,507 7,253 210 94 319 3,631 2,820 16 3,806 781 25 434 1 ,255 1,311 439 3,829 211 548 11,402 7,339 177 89 307 3,490 2,768 23 4,142 1,135 23 431 1 .250 1 ,303 463 3,860 216 567 12,934 7,500 526 109 335 4,464 2,868 30 4, (82 1,193 23 434 1 ,236 1,296 472 3,943 213 576 10,903 6,485 137 99 368 3,814 2,794 Dec. 7 4,277 1 ,290 23 441 1 ,229 1,294 550 3,894 224 593 12,491 7,973 160 1 1 I 393 3,854 2,838 14 4,380 1,318 61 502 1 ,201 1,298 579 3,972' 209 632 1 1 ,759 7,145 153 100 361 4,000 2,817 21 4,626 1,528 62 501 I ,224 I ,311 560 3,930 207 642 13,857 8,392 218 112 382 4,753 2,775 28 Outside New York City 1965 21,761 3,642 3,636 8,735 5,748 19,773 27,999 12,005 3,906 1 15 2,107 9,866 4,504 21,549 3,405 3,653 8,735 5,756 19,814 26,518 10,785 3,949 1 18 2,1 27 9,539 4,435 8 21'506 3'382 3,603 8.741 5,780 19,871 29,539 13,151 4,099 116 2 J82 9,'991 4,528 15 21'638 3,541 3,553 8,721 5,823 19,952 28,816 12,338 4,029 115 2,203 10,131 4,484 22 21^693 3,670 3.585 8,614 5,824 19’,946 28 J 79 11,483 3,874 119 2,300 10,'403 4,543 29 1966 18,735 2,140 480 2,814 8,181 5,120 2,011 17,082 709 1 ,685 29,431 12,576 3,772 127 2,127 10,829 4,959 Nov, 2 18,552 1,990 465 2,83! 8,156 5,110 1,872 17,044 710 1 ,659 28,256 12,188 3,794 133 2,188 9,953 4,956 9 18,728 1,868 254 2,749 9,132 4,725 1,809 17,071 700 1 ,673 31,212 14,243 4,055 129 2,214 10,571 4,877 16 18,706 1 ,892 246 2,784 9,063 4,721 1 ,768 17,068 705 1,672 28,531 12,385 3,780 138 2,176 10,052 4,85! 23 19,296 2,448 243 2,805 9,083 4,717 1,704 17,090 676 1 ,749 24,107 12,465 3,882 128 2,42010,241 5,029 30 19,041 2,189 240 2,802 9,092 4,718 1,787 17,204 656 1,670 28,141 11,737 3,818 132 2,281 10,173 5,042 Dec. 7 19,733 2,780 242 2,846 9,108 4,757 1 ,700 17,236 665 1,672 29,516 12,925 3,820 129 2,492 10,150 5,040 14 20,110 3,152 246 2,876 9,081 4,755 1,775 17,222 725 1 ,655 30,830 13,070 4,091 131 2,461 11,077 5,030 21 20,124 3,146 246 2,891 9,057 4,784 1,744 17,176 716 1 ,685 31,151 13,534 4,234 136 2,649 10,598 5,075 28 For notes see p. 111. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

110 WEEKLY REPORTING BANKS JANUARY 1967 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time Total Wednesday unad­ States Do­ Foreign 1PC States Foreign justed and mes­ and Do­ polit­ tic polit­ mes­ Total 5 I PC d s i u c iv a b i l ­ ­ G U o . v S t . . c m c o i e a m r l ­ ­ G e o tc v . t 6 ., C m c o i e a m r l ­ ­ Total 7 S in a g v s ­ Other d s ic u iv a b i l ­ ­ i b n t a i t c n e r k ­ G e o tc v . t., C m c o i e a m r l ­ ­ sions banks banks sions banks Large banks—■ Total 1965 Dec. 1................ 192,502 107,835 77,878 5,924 4,031 12,878 735 1 ,311 84,667 50,407 22,399 6,880 623 3,962 221 8................... 188,860 104,006 76,556 5,699 2,028 13,152 720 1,320 84,854 50,469 22,533 6,901 624 3,921 232 15................... 196,936 112,502 83,650 5,556 2,248 13,519 774 1 ,304 84,434 50,478 21,824 7,241 575 3,912 227 22................... 195,990 111,102 80,946 5,514 3,926 13,342 796 1,370 84,888 50,508 22,045 7,397 583 3,945 234 29................... 195,499 110,203 81,073 5,854 4,059 12,400 873 1 ,447 85,296 50,695 22,111 7,525 584 3,969 230 1966 Nov. 2................... 196,128 107,393 77,518 6,614 3,460 12,692 745 1,455 88,735 46,962 29,197 7,569 537 4,098 216 9.................... 194,674 105,995 76,449 5,757 2,318 13,719 685 1 ,369 88,679 47,014 29,141 7,519 531 4,095 213 16................... 196,337 108,039 80,344 5,742 1 ,473 13,383 703 I ,433 88,298 46,977 28,854 7,444 525 4,114 217 23................... 192,903 104,561 77,222 5,711 2,037 12,465 654 1 ,421 88,342 46,972 28,907 7,527 484 4,054 228 30................... 197,200 108,817 79,359 6,300 2,779 13,077 747 1,441 88,383 46,924 28,944 7,625 481 4,032 122 Dec. 7................... 193,148 104,675 77,194 5,762 1 ,733 13,001 705 1,382 88,473 46,934 28,881 7,691 497 4,103 207 14................... 198,216 109,600 81,929 5,895 1 ,000 12,933 675 1 ,399 88,616 46,872 28,751 7,955 500 4,180 205 21 . .............. 201,291 112,397 82,332 5,908 3,517 13,383 687 1,471 88,894 46,885 28,679 8,135 529 4,213 203 28.................... 204,121 114,626 82,985 6,127 3,879 13,838 738 1 ,557 89,495 47,099 28,979 8,293 526 4,234 209 New York City 1965 Dec. 1..............4..4..,.481 27,119 17,704 425 805 3,656 572 880 17,362 5,323 7,919 649 421 2,855 1 18 8................... 43,371 25,908 17,191 483 408 3,687 557 880 17,463 5,335 8,028 645 422 2,831 127 15................... 46,561 29,440 20,050 338 446 3,730 615 869 17,121 5,333 7,680 708 379 2,818 124 22................... 46,144 28,803 18,917 346 1 ,071 3,586 636 930 17,341 5,330 7,869 709 384 2,842 130 29................... 45,863 28,476 19,021 402 1 ,238 3,414 699 991 17,387 5,348 7,94! 658 382 2,845 129 1966 Nov. 2.................... 43,646 27,107 17,582 696 962 3,383 607 1 ,005 16,539 4,575 7,756 725 358 2,944 1 12 9................... 43,998 27,463 17,253 275 513 4,115 555 936 16,535 4,609 7,718 719 359 2,942 108 16................... 43,292 26,845 18,232 312 243 3,684 564 1 ,001 16,447 4,597 7,602 755 353 2,951 108 23................... 42,982 26,625 17,634 255 393 3,653 526 950 16,357 4,591 7,608 735 322 2,903 115 30........... 45,402 28,975 18,724 550 1,155 3,71 I 614 970 16,427 4,596 7,686 765 316 2,884 100 Dec. 7................... 42,821 26,457 17,712 301 324 3,610 563 952 16,365 4,596 7,586 757 320 2,932 96 14................... 45,031 28,711 19,438 291 99 3,599 542 971 16,320 4,589 7,492 768 323 2,983 94 21.................... 45,865 29,588 19,412 445 1,128 3,842 549 1 ,025 16,277 4,585 7,443 757 342 2,988 93 28................... 47,310 30,918 19,753 338 1 ,215 4,317 602 1 ,080 16,392 4,613 7,546 740 335 2,993 94 Outside New York City 1965 Dec. 1................... 148,021 80,716 60,174 5,499 3,226 9,222 163 431 67,305 45,084 14,480 6,231 202 1,107 103 8................... 145,489 78,098 59,365 5,216 1 ,620 9,465 163 440 67,391 45,134 14,505 6,256 202 1 ,090 105 15................... 150,375 83,062 63,600 5,218 1 ,802 9,789 159 435 67,313 45,145 14,144 6,533 196 1 ,094 103 22.................... 149,846 82,299 62,029 5,168 2,855 9,756 160 440 67,547 45,178 14,176 6,688 199 1 , 103 104 29.................... 149,636 81,727 62,052 5,452 2,811 8,986 174 456 67,909 45,347 14,170 6,867 202 1,124 101 1966 Nov. 2.............. 152,482 80,286 59,936 5,918 2,498 9,309 138 450 72,196 42,387 21,441 6,844 179 1,154 104 9................... 150,676 78,532 59,196 5,482 1,805 9,604 130 433 72,144 42,405 21,423 6,800 172 1,153 105 16................... 153,045 81,194 62,112 5,430 1 ,230 9,699 139 432 71,851 42,380 21,252 6,689 172 1,163 109 23................... 149,921 77,936 59,588 5,456 1,644 8,812 128 471 71 ,985 42,381 21,299 6,792 162 1,151 113 30................... 151,798 79,842 60,635 5,750 I ,624 9,366 133 471 71,956 42,328 21 ,258 6,860 165 1,148 112 Dec. 7................... 150,327 78,218 59,482 5,461 1 ,409 9,391 142 430 72,109 42,338 21,295 6,934 177 1,171 11 1 14................... 153,185 80,889 62,490 5,604 901 9,334 133 428 72,296 42,283 21,259 7,187 177 1,197 111 21................... 155,426 82,809 62,920 5,463 2,389 9,541 138 446 72,617 42,300 21 ,326 7,378 187 1 ,225 110 28................... 156,811 83,708 63,232 5,789 2,664 9,521 136 477 73,103 42,486 21 ,433 7,553 191 1,241 115 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 WEEKLY REPORTING BANKS 111 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets— Total B F F a r . o n R m k . s o F t r h o e m rs lia O b t i h li e ti r e s a C cc a o p u it n a t l s l a i c c a a c b a p o i n l i u d i t t n a ie l t s s T l ( o n o a e t n t a ) s l , ad T ( l j n o u o e a s t t n a t ) e s l , d , D a d d e e j m p u o s a t s e n i d t d s ^ La o r f g e d e c p er o ti s f i i t c 1 a 0 tes Wednesday adjusted 8 and in­ Total Issued Issued vestments8 issued to IPC’s to others Large banks— Total 1965 140 5,004 8,222 18,355 224,223 123,316 175,588 72,364 16,638 Dec. 1 77 4,27 J 8,203 18,334 219,745 122,183 174,278 72,268 16'650 8 38 5 525 8,263 18,321 229^083 125,200 177,607 76,084 15,639 15 202 5,351 8,078 18,314 227,935 125,557 178,399 74,'419 16,102 22 390 5,795 7,967 18,374 228,025 125,787 178,598 75,901 16,251 29 1966 711 5,760 10,825 19,138 232,562 131,986 181,564 72,473 15,7(1 10,621 5,090 Nov. 2 441 6,782 11,479 19,158 232,534 131,636 180,566 69,396 15,721 10,609 5,112 9 443 6,920 11,967 19,103 234,770 131,894 180,812 71,687 15,535 *30,467 5,069 16 250 6,784 11,693 19,070 230,070 131,023 '•179,775 70,336 15,501 10,503 4,998 23 325 6,693 11,359 19,199 234,776 131,550 181,373 72,996 15,462 10,499 4,963 30 218 6,700 11,727 19,180 230,973 131,139 180,883 71 ,719 15,475 10,451 5,024 Dec. 7 245 6,739 11,793 19,142 236,135 132,269 182,813 74,769 15,388 10,265 5,123 14 218 6,602 11,687 19,122 238,920 133,959 185,218 75,282 15,426 10,171 5,255 21 891 6,771 11,348 19,136 242,267 134,571 185,981 74,983 15,633 10,346 5,287 28 New York City 1965 2,053 3,393 5,038 54,965 30,062 40,800 16,101 6,974 Dec. 1 1 ,601 3,486 5,027 53,485 29,437 40,169 16,040 6,996 8 2,225 3,419 5,023 47^228 30'866 41,896 17,764 6,584 15 2,203 3,220 5,007 56,574 30,871 42,123 17,069 6,754 22 45 2^36 3,136 5,01 1 56,591 30 J 959 42 J 31 17,'454 6,885 29 1966 156 2,198 5,290 5,126 56,416 32,692 42,048 16,570 5,689 3,934 1,755 Nov. 2 60 2,671 5,750 5,141 57,620 32,305 41,398 14,461 5,662 3,920 1,742 9 2,446 5,738 5,129 56,605 32,316 41,253 15,665 5,519 3,793 1,726 16 4 2^252 5^722 5,109 56,069 31,978 40,811 15,240 5,437 3,795 1,642 23 2,531 5,203 5,156 58,292 32,368 41,616 16,609 5,413 3,838 1,575 30 2,637 5,445 5,127 56,030 32,096 41,482 16,038 5,372 3,788 1,584 Dec. 7 2,724 5,615 5,125 58,495 32,460 41,998 17,040 5,316 3,683 1,633 1 4 2'232 5,435 5,103 58,635 33,281 43,053 17^473 5,218 3,574 1'644 21 430 2,960 5,253 5,110 61,063 33;768 43,733 16,994 5,318 3^686 1,632 28 Outside New York City 1965 140 2,951 4,829 13,317 169,258 93,254 134,788 56,263 9,664 Dec. 1 77 2,670 4,717 13,307 166,260 92',7 46 134,109 56,228 9,654 8 38 3^300 4,844 13,298 171^855 94,334 135,711 58,320 9,055 15 202 3,148 4,858 13,307 171,361 94,686 136,276 57,350 9,348 22 345 3^259 4,831 13,363 171,434 94,828 136,467 58,447 9,366 29 1966 555 3,562 5,535 14,012 176,146 99,294 139,516 55,903 10,022 6,687 3,335 Nov. 2 381 4,111 5,729 14,017 174,914 99,331 139,168 54,935 10,059 6,689 3,370 9 443 4,474 6,229 13,974 178,165 99,578 139,559 56,022 10,016 r6,674 3,343 16 246 4,532 5,971 13,961 174,631 99,045 138,964 55,096 10,064 6,708 3,356 23 325 4,162 6,156 14,043 176,484 99,182 139,757 56,387 10,049 6,661 3,388 30 218 4,063 6,282 14,053 174,943 99,043 139,401 55,681 10,103 6,663 3,440 Dec. 7 245 4,015 6,178 14,017 177,640 99,809 140,815 57,729 10,072 6,582 3,490 14 218 4,370 6,252 14,019 180,285 100,678 (42,165 57,809 10,208 6,597 3,611 21 461 3,811 6,095 (4,026 181,204 100,803 142,248 57,989 10,315 6,660 3,655 28 1 After deduction of valuation reserves. 9 All demand deposits except U.S. Government and domestic com­ 2 Individual items shown gross. mercial banks, less cash items in process of collection. ^Includes short-term notes and bills (less than 1 year to maturity) >o Certificates of deposit issued in denominations of $100,000 or more. issued by States and political subdivisions. 4 Federal agencies only. Note.—-Beginning June 29, 1966, coverage of series was changed from s Includes certified and officers’ checks, not shown separately. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ 6 Deposits of foreign governments and official institutions, central cial Banks; also, detailed breakdown is shown of “All other loans,” of banks, and international institutions. “Other securities,” and of ownership of time certficates of deposit in 7 Includes U.S. Government and postal savings, not shown separately denominations of $100,000 or more. For description of revisions, see Aug. 8 Exclusive of loans to domestic commercial banks. 1966 Bulletin, pp. 1137-40. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

112 BUSINESS LOANS OF BANKS JANUARY 1967 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1966 1966 1966 1966 D 2 e 8 c. D 2 e 1 c. D 1 e 4 c. D 7 ec. N 3 o 0 v. Dec. Nov. Oct. IV HI 11 h 2n a d lf h 1 a s l t f Durable goods manufacturing: Primary metals................................. 950 951 957 951 959 — 9 — 4 -47 -60 -75 80 -135 233 Machinery........................................ 4,123 4,217 4,022 3,968 3 953 170 -4 54 220 360 467 580 680 Transportation equipment.............. 2,001 2,017 2,017 I ,954 I ’885 116 1 24 235 239 233 474 358 Other fabricated metal products. . . 1 ,'575 1 ,595 1 ,595 H578 1 ,587 -12 -40 -47 -99 72 169 —27 265 Other durable goods....................... 1,987 2,020 1 ,999 1 ,984 1 ,965 22 - 1 7 1 6 78 234 84 390 Nondurable goods manufacturing: Pnod liquor and tobacco......... 2,808 2,827 2,710 2,694 2,642 166 191 162 519 56 -117 575 — 156 Textiles, apparel, and leather.......... 1 ,825 1 829 1 ,873 1 880 1 910 -85 - 101 - 194 -380 106 225 — 274 550 Petroleum refining.......................... 1 ,613 I ,703 1 ,701 1 703 1 740 127 -37 2 -162 -92 107 -254 256 Chemicals and rubber..................... 2^268 2 269 2.249 2,237 2215 53 — I 52 81 23 133 353 Other nondurable goods................. 1 '529 1 529 I .509 1 511 1 509 20 —16 -67 -63 127 216 64 309 Mining, including crude petroleum and natural gas..................... 3,983 3,946 3,915 3,905 3,938 45 -41 -44 -40 222 226 182 344 Trade: Commodity dealers................. 1,482 1,499 1 ,484 1 45 1 1 447 35 242 35 312 22 -222 .334 -322 Other wholesale....................... 2; 930 2 961 2^932 2,942 2 939 -9 73 — 4 60 42 1 55 102 161 Retail........................................ 3,473 3'560 3.477 3.511 3 570 — 97 57 109 69 - 1 16 466 -47 455 Transportation, communication, and other public utilities............. 7,261 7,176 7,044 6,985 6,975 286 161 104 551 370 343 921 220 Construction........................................ 2,537 2,554 2.563 2,551 2.534 3 —76 -26 -99 — 74 153 -173 189 All other:1 Rankers’ acceptances................... 528 475 475 445 447 81 60 24 165 -101 -231 64 -232 All other types of business, mainly services...................................... 6,715 6,760 6,713 6 698 6,731 —16 I 18 3 -56 226 -53 469 Total classified loans........................... 49,588 49,888 49,235 48 ,‘948 48,946 642 573 74 1.289 1,261 2,753 2,550 4,522 Commercial and industrial loans—- All weekly reporting banks....... 60,609 60,969 60,243 59,921 59.938 671 455 84 1,210 1,153 3,152 2,363 5,163 * Beginning Dec. 31, 1963, bankers’ acceptances for the creation Note.—About 200 of the weekly reporting member banks are included of dollar exchange are excluded from commercial and industrial loans in this series; these banks classify, by industry, commercial and industrial and those relating to commercial transactions are shown in a separate loans amounting to about 85 per cent of such loans held by all weekly category. Current figures are therefore not strictly comparable with reporting member banks, and about 60 per cent of those held by all figures previously reported, but differences are relatively small. commercial banks. BANK RATES ON SHORT-TERM BUSINESS LOANS (Per cent per annum) Size of loan Size of loan (thousands of dollars) (thousands of dollars) Area All Area All and loans and loans period l- 10­ 100­ 200 period 1­ 10­ 100­ 200 10 100 200 and over 10 100 200 and over Year: 19 large cities: Quarter—cont.:1 New York City: 1957........................... 4.6 5.5 5.1 4.8 4.5 1965—Dec.......... 5.08 5.74 5.59 5.34 4.99 1958........................... 4. 3 5.5 5.0 4.6 4. 1 1966—Mar.............. 5.41 5.92 5.78 5.66 5.34 1959........................... 5.0 5.8 5.5 5.2 4.9 June............. 5.65 6.14 6.11 5.87 5.57 Sept.............. 6.13 6.60 6.57 6.39 6.05 I960........................... 5.2 6.0 5.7 5.4 5.0 Dec.............. 6.16 6.60 6.56 6.38 6.09 1961........................... 5.0 5.9 5.5 5.2 4.8 1962........................... 5.0 5.9 5.5 5.2 4.8 7 other northern and 1963......................... 5.0 5.9 5.5 5.2 4.8 eastern cities: 1964........................... 5.0 5.9 5.6 5.3 4.8 1965—Dec............... 5.32 5.95 5.80 5.56 5. 19 1965......................... 5. 1 5.9 5.6 5.4 4.9 1966—Mar.............. 5.58 6.10 6.05 5.82 5.46 1966.......................... 6.0 6.5 6.4 6.2 5.9 June............. 5.86 6.32 6.35 6,08 5.74 Sept.............. 6.40 6.62 6.75 6.60 6.31 Quarter:1 Dec............. 6.38 6.81 6.60 6.27 19 large cities: 11 southern and 1965—Dec........................ 5.27 5.96 5.74 5.51 5.11 western cities: 1965—Dec.............. 5.46 6.07 5.80 5.59 5.23 1966—Mar........................ 5.55 6.13 5.96 5.76 5.41 1966—Mar.............. 5.70 6.23 6.01 5,77 5.50 5,82 6.39 6.25 6.03 5.68 June............. 6.00 6.52 6.28 6.08 5.82 Sept....................... 6,30 6.73 6.65 6,51 6.18 Sept........... • 6.42 6.84 6.65 6.51 6.26 6.31 6.78 6.70 6.51 6.19 Dec............. 6.46 6.91 6.73 6,52 6.29 1 Based on new loans and renewals for first 15 days of month. 1956—Apr. 13 3 3/4 1959—May 18 +‘/2 Aug. 21 4 Sept. 1 5 Note.—Weighted averages. For description see Mar. 1949 Bulletin, 1957—Aug. 6 4«4 I960—Aug. 23 4/2 pp, 228-37. 1958—Jan. 22 4 1965—Dec. 6 5 Bank prime rate was 3Vi per cent during the period Jan. 1, 1956—Apr. Apr. 21 3*^ 1966—Mar. 10 5>/2 12, 1956. Changes thereafter to new levels (in per cent) occurred on the Sept. 11 4 June 29 5>/4 following dates: Aug. 16 6 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INTEREST RATES 113 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period p c a o p m e l r . , p p l a a p ce e d r b a a c n c k e e p r t­ s’ F f e u d n e d r s a l 3-month bills 5 6-month bills 5 9- to 12-month issues 3- y t e o a r 5 m 4- o n to th 6 s - 1 d 3 i - r e t c o t l 6 y - , 90 a n d c a e y s s , 1 rate 3 Rate on Market Rate on Market Bills (mar­ Other 6 issues 7 months 2 new issue yield new issue yield ket yield)-5 1964........................... 3.97 3.83 3.77 3 50 3.549 3 54 3.686 3.68 3.74 3.76 4.06 1965........................... 4.38 4.27 4.22 4.07 3.954 3 95 4,055 4 05 4.06 4,09 4.22 1966........................... 5.55 5.42 5.36 5.11 4.881 4 85 5.082 5.06 5.07 S. 17 5.16 1965—Dec................. 4,65 4.60 4.55 4.32 4.362 4.37 4.523 ■ 4.54 4.56 4.66 4.77 1966—Jan.................. 4.82 4.82 4.75 4.42 4.596' 4.58 4.731 4.71 4.69 4,83 4.89 Feb................ 4.88 4.88 4.86 4.60 4.670 4.65 4.820 4.82 4.81 4.92 5,02 Mar................. 5.21 5.02 4.96 4.65 4.626 4.58 4.825 4.78 4.81 4.96 4.94 Apr.. .............. 5,38 5.25 5.00 4.67 4,611 4.61 4.742 4.74 4.76 4.87 4.86 5.39 5.38 5.18 4 90 4’642 4.63 4 814 4 81 4.85 4 90 4.94 June................ 5.51 5.39 5.39 5.17 4.539 4.50 4.696 4.65 4.78 4.94 5.01 July................. 5.63 5.51 5.58 5,30 4.855 4.78 4.982 4.93 4.94 5.17 5.22 Aug................. 5.85 5.63 5.67 5.53 4.932 4.95 5.189 5.27 5.34 5.52 5.58 Sept................. 5.89 5.67 5.75 5.40 5.356 5.36 5.798 5,79 5.80 5.80 5.62 Oct................... 6.00 5.82 5.72 5.53 5.387 5.33 5,652 5.61 5.52 5.57 5.38 Nov................. 6,00 5.88 5.67 5.77 5.344 5.31 5.604 5 54 5.49 5.45 5.43 Dec................. 6.00 5.88 5.60 5.40 5.007 4.96 5.108 4.98 5.00 5.10 5.07 Week ending- - 1966—Dec. 3.......... 6.00 5 88 5.65 5.64 5.202 5 17 5.337 5.26 5.27 5.32 5.34 10.......... 6.00 5.88 5.62 5.36 5.198 5.16 5.281 5.26 5.25 5. 33 5.30 17.......... 6.00 5.88 5.62 5.43 5.048 4.97 5.129 5.06 5.01 5.10 5.06 24.......... 6.00 5.88 5.60 5.25 4.842 4.81 4.939 4.93 4.78 4.93 4.90 JI.......... 6.00 5.88 5.50 5.57 4.747 4.80 4.856 4.92 4.83 4.92 4.86 I Averages of daily offering rates of dealers, 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance cos., for varying maturi­ closing bid prices, 5 Bills quoted on bank discount rate basis. ties in the 90-179 day range. 6 Certificates and selected note and bond issues. 2 Seven-day average for week ending Wed. 7 Selected note and bond issues. BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio States Total l (long­ term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 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 1965.............................................. 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................. 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 1965—Dec.................................... 4.43 3.56 3.39 3.78 4.84 4.68 5.02 4.79 4.91 4 82 4 47 3.06 5.68 1966—Jan..................................... 4.43 3.56 3.40 3.79 4.89 4.74 5.06 4.84 4.97 4.85 4.51 3.02 Feb.................................... 4.61 3.66 3.48 3.93 4.94 4.78 5.12 4.91 5.02 4.90 4,63 3.06 Mar.................................. 4.63 3.78 3.55 4.11 5. 10 4,92 5.32 5.06 5.18 5.08 4 83 3.23 6.13 Anr..................................... 4.55 3.68 3.46 4.06 5.16 4.96 5.41 5.09 5.19 5.21 4.78 3.15 May 4.57 3.76 3.53 4.13 5.18 4.98 5.48 5.12 5.20 5.23 4.83 3.30 June 4.63 3.84 3.60 4.16 5.28 5.07 5.58 5.25 5.26 5.32 4.93 3 36 6.80 4.74 4.01 3.77 4.31 5.36 5.16 5.68 5.33 5.37 5.39 5.00 3.37 Aug.................................... 4.80 4.16 3.91 4.46 5.50 5.31 5.83 5.49 5,48 5.54 5 18 3.60 Sept.................................... 4.79 4.18 3.93 4.48 5.71 5,49 6.09 5.71 5.65 5.78 5.23 3.75 7.18 Oct..................................... 4.70 4.09 3.82 4.42 5,67 5.41 6.10 5,63 5.67 5.72 5.28 3.76 Nov............................ 4.74 4.01 3.78 4.33 5.65 5.35 6,13 5.59 5.72 5.64 5.21 3.66 Dec..................................... 4.65 4.01 3.79 4.29 5.69 5.39 6.18 5.63 5.78 5.65 5.24 3,59 Week ending— 1966—Dec. 3............................. 4.74 4. 11 3.89 4.37 5.68 5.37 6.18 5.61 5.76 5.67 5.27 3.69 10............................. 4.76 4.04 3.84 4.30 5.69 5.38 6.17 5.61 5.77 5.67 5.26 3.58 17............................. 4.65 3.97 3.74 4.26 5.69 5.38 6.19 5.63 5,77 5.67 5.23 3.54 24 ......................... 4.58 3.97 3.74 4.26 5.69 5.39 6.19 5.64 5.78 5.65 5.24 3.60 31............................. 4.54 3.97 3.74 4.26 5.69 5.40 6.18 5.63 5.80 5.63 5,24 3.64 .................. Number of issues......................... 10-U 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

114 SECURITY MARKETS JANUARY 1967 MORTGAGES’, NEW AND EXISTING HOMES SECURITY PRICES (Per cent) (Pe B r o $ n 1 d 0 0 p r b ic o e n s d) Co ( m 19 m 4 o 1 n - 4 s 3 to = c k 10 ) prices Vol­ Contract interest rate on ume Yield conventional first mortgages of Period o i n n s F u H re A d - FHAseries FHLBB series Period ( G t l U e o o r . n m S v g t . ) , ­ S l a o t n c a d a te l A C p a A o o te r r A ­ ­ Total d t I r u n ia s ­ l ­ R ro a a i d l­ P u i l u t t i i y c b l ­ ­ ( s t h t h r i a n a o r g d e u s ­ s ) . New New Existing New Existing 1964............. 84.46 111.5 95.1 81.37 86.19 45.46 69.91 4,888 1965............. 83.76 110.6 93.9 88.17 93.48 46.78 76.08 6,174 1961................. 5.69 5.97 6.04 1966............. 78.63 102.6 83,3 85.26 91.09 46.34 68.21 7’538 1962................. 5.60 5.93 5.99 1963................. 5.46 5.81 5.87 5 84 5.98 1965—Dec... 81.21 106.3 91.1 91.73 97.66 51.03 75.39 86,90 1964................. 5.45 5.80 5.85 5 78 5.92 1965................. 5.47 5.83 5.89 5.76 5.89 1966—Jan... 81.15 106.9 90.5 93.32 99.56 53.68 74.50 8,935 1966................. 6.77 6.65 6.70 Feb... 79.32 105.2 89.5 92.69 99.11 54.78 71.87 8,753 Mar.. 78.92 103.9 87.9 88.88 95.21 51.52 69.21 8,327 1965—Sept....... 5.46 5.80 5.90 5.75 5.89 Apr... 79.75 105.9 87.6 91.60 98.17 52.33 70.06 9,310 5 49 5 85 5 90 5 75 5 87 May.. 79.56 104.5 87.6 86.78 92.85 47.00 68.49 8,165 Nov....... 5.51 5'90 5.95 5.80 5.91 June.. 78.93 103.2 86.9 86.06 92.14 46.35 67.51 6,393 Dec....... 5.62 6.00 6.05 5.78 5.91 July.. 77.62 100.9 86.0 85.84 91.95 45.50 67.30 5,997 Aug.. 77.02 97.7 84.1 80.65 86.40 42.12 63.41 7,064 1966—jan........ 5 70 6 00 6.05 5.81 5.97 Sept.. 77.15 98.5 82.6 77.81 83.11 40.31 63.11 5,722 Feb........ 6.05 6.10 5.85 5.97 Oct.. . 78.07 100.5 83.5 77.13 82.01 39,44 65.41 7,000 Mar....... 6.00 6.15 6.20 5.90 6.01 Nov.,. 77.68 101.0 83.5 80.99 86.10 41.57 68.82 7,297 6.25 6.30 5.99 6.09 Dec... 81.21 102.4 83.3 81.33 86.50 41.44 68.86 7,883 May.... 6,32 6.30 6.35 6.02 6.16 June.... 6.45 6.40 6.50 6.07 6.18 Week July....... 6.51 6.45 6.55 6.12 6.24 ending'— Aug....... 6.58 6.55 6.65 6.18 6.35 Sept....... 6.63 6.65 6.70 6.22 6.40 Dec. 3....... 77.66 99.6 83.3 80.36 85.46 41.21 68.05 7,386 Oct........ 6.70 6.75 6.32 6.49 10....... 77.48 101.2 83.0 81.40 86.67 41.46 68.28 7,592 Nov....... 6.81 6.70 6.75 6.40 6.50 17 78.67 102.2 83.9 82,32 87.65 41,74 69.08 8,223 Dec....... 6.77 6.65 6.70 24....... 79.43 102.9 83. 1 81.35 86.48 41.51 69.23 7*570 31....... 79.93 103.1 83.1 80.58 85.54 41.28 69.35 8,173 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices Note.—Annual data are averages of monthly figures. Monthly and weekly on prevailing conditions in their localities as of the first of the data are averages of daily figures unless otherwise noted and are computed as succeeding month. The yields are derived front weighted aver­ follows: U.S. Govt, bonds, derived from average market yields in table at bottom of ages of private secondary market prices for Sec. 203, 30-year preceding page on basis of an assumed 3 per cent, 20-year bond. Municipal and mortgages with minimum downpayments and an assumed pre­ corporate bonds, derived from average yields as computed by Standard and Poor’s payment at the end of 15 years. Gaps in the data are due to Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common periods of adjustment to changes in maximum permissible con­ stocks. Standard and Poor’s index. Volume of trading, average daily trading in tract interest rates. The FHA series on average interest rates stocks on the N.Y. Stock Exchange for a 5}4-hour trading day. on conventional first mortgages are unweighted and are rounded to the nearest five basis points. For FHLBB series, see footnote to table on Conventional First Mortgages, p. 1823. STOCK MARKET CREDIT . (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans to others than N.Y. Stock Exchange brokers and dealers for pur- Money borrowed on— firms secured by— chasing orcarrying— Cus­ Month Total tomers’ securities net other than Other securities free U.S. Govt. se G c U u o . r S v it t . i , e s se O cu th ri e ti r e s se G c U u o r . v i S t t i . , e s se O cu th ri e ti r e s se G c U u o . r S v it . t i , e s Total Customer Other c a b r n e a c d l e ­ i s t collateral collateral 1963—Dec....... 7,242 26 5,515 140 1,727 32 4,449 3,852 597 1,210 1964—Dec..... 7,053 21 5.079 72 1,974 222 3,910 3,393 517 1,169 1965—Nov..... 7,304 23 5,209 93 2,095 134 3,527 2,930 597 1,479 Dec....... 7,705 22 5,521 101 2,184 130 3,576 2,889 687 1,666 1966—Jan........ 7,726 24 5,551 104 2,175 126 3,543 2,948 59S 1,730 Feb........ 7,950 24 5,753 101 2,197 34 3,552 2,959 593 1,765 Mar....... 7,823 26 5,645 105 2,178 108 3,495 2,855 640 1,822 Apr..... 7,991 27 5,835 92 2,156 193 3,665 2,983 682 1,744 May. . . . 7,905 29 5,768 88 2,137 153 3,588 2,935 653 1,839 June.. .. 8,001 29 5,770 87 2,231 126 3,683 2,977 706 1,658 July. . . . 7,870 34 5,667 116 2,203 55 3,731 3,127 604 1,595 Aug....... 7,811 35 5,609 115 2,202 109 3.676 3,082 594 1,595 Sept....... 7,525 45 5,355 106 2,170 103 3,434 2,859 575 1,528 Oct....... 7,302 47 5,169 95 2,133 198 3,151 2,627 524 1,520 Nov...... 7,352 57 5,217 93 2,135 97 3,166 2,597 569 1 ,532 Note.—Data in first 3 cols, and last col. are for end of month; in other partners of reporting firm. Balances are net for each customer—i.e., all ac­ cols, 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 the Exchange. Customers’ debit and free credit balances Bank loans to others than brokers and dealers: Figures are for large exclude balances maintained with reporting firm by other member firms of commercial banks reporting weekly. national securities exchanges and balances of reporting firm and of general Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

.NUARY 1967 OPEN MARKET PAPER; SAVINGS INSTITUTIONS 1315 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Held by— Based on— End of period Accepting banks F.R. Goods stored in or Banks Im­ Ex­ shipped between Total th P r la o c u e g d h P d l i a re c c e t d ­ Total Others p i o nt r o ts f p r o o r m ts Do e l x la ­ r points in— dealers 1 ly2 Total O bi w ll n s bo B u il g ls h t O ac w ct n . c F e o i o g r r n r ­ . U St n a i t t e e s d U S n ta i t t e e s d change U S n ta i t t e e s d c F o o u r n e t i r B ie n s 1959..................... 3,202 677 2,525 1,151 3(9 282 36 75 82 675 357 309 74 162 249 1960...................... 4,497 1,358 3,139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961..................... 4,686 1,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 8i9 1962...................... 6,000 2,088 3,912 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 1963..................... 6,747 1,928 4,819 2,890 1,291 1,031 260 162 92 1,345 567 908 56 41 1,317 1964..................... 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 111 43 1,565 1965 Nov........... 10,406 2,205 8,201 3,245 1,188 1,051 136 110 146 1,802 802 917 14 26 1,4J5 Dec.......... 9,058 1 ,903 7,155 3,392 1,223 1,094 129 187 144 1 ,837 792 ‘974 27 35 1,564 1966-—Jan............ 9,984 1,834 8,150 3,332 1,206 1,109 97 110 134 4,883 752 933 26 29 t, 592 Feb............ 10,365 1,828 8,537 3,313 1,294 1,177 117 122 135 1,762 738 920 35 22 1,600 Mar........... 10,732 2,066 8,666 3,388 1,266 1 ,037 229 126 129 1,867 775 887 36 21 1,6611 Apr........... 11,239 2,253 8,986 3,464 1,284 1,060 224 159 137 1,884 ‘829 875 34 20 1,706 May.......... 11,437 2,113 9,324 3,418 1,269 I ,034 235 180 159 1,810 834 847 39 20 1,679 June 10,769 2,090 8,679 3,420 1,061 927 134 238 252 1,869 881 833 34 24 1 ,648 July........... 12,183 2,361 9,822 3,369 1 ,005 912 93 51 257 2,056 911 790 54 23 1,591 Aug....... 12,835 2,653 ‘10,182 3,387 909 824 84 48 272 2,158 946 781 64 54 1,541 Sept........... 11,778 2,773 9,005 3,370 935 846 89 47 243 2,145 957 760 62 60 1,531 Oct........ 13,045 2,977 10,068 ‘3,359 961 c861 100 ‘72 230 ‘2,096 982 756 75 57 1,489 Nov........... 14,156 3,153 11,003 3,457 1 ,056 895 161 131 203 2,067 711 502 44 20 921 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. Series includes all paper with maturity of 270 days or more. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— Total General Mortgage loan End of period M ga o g r e t­ Other G U o .S vt . . S l g a o o t n c a v d a t t e l . C ot o r a h a n r e t p d e r o 1 ­ Cash O as t s h e e ts r g r l e i e a a t s n i e b n e e r i d s r v l a i e ­ l D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ r c e o s a u e c r n ­ v t e s commitment 3 accts. NumberAmount 1941............................. 4,787 89 3,592 1 829 689 11,772 10,503 38 1,231 1945 ........................... 4,202 62 10,650 1 7S7 606 185 16^62 15,332 48 1382 1059 4........................... 24,769 358 6.871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 1,170 1960. 26i702 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 3357 114,985 2348 1963 ............................. 36,007 607 5 ,'863 440 5; 074 912 799 49,702 44,606 943 4,153 104,326 2,549 1964............................. 40,328 739 5'791 391 5; 099 1,004 886 54,238 48,849 989 4,400 135,992 2,820 1965—-Oct........ 43,680 813 5,585 338 5,265 897 974 57,552 51,663 1,283 4,607 127,757 2,859 Nov.......... 44,031 888 5,515 333 5’,243 885 966 57,863 51,826 1,366 4,672 124,097 2.824 Dec................... 44 ,'43 3 862 5',435 320 5,170 1,017 944 58,232 52,443 1,124 4365 120,476 2,607 1966—-Jan.................... 44,709 904 5,560 314 5,217 920 965 58,588 52,689 1 ,230 4,669 116,124 2,5 90 Feb.................... 44^52 925 5; 623 313 5; 289 932 965 58;999 52;907 1,354 4,737 114,106 2,551 Mar,................ 45;180 913 5,600 317 5,352 896 998 59,256 53,286 1,228 4,742 113,554 2,',565 Apr................... 45,335 867 5,'335 307 5,'323 849 994 59,010 52,959 1343 4307 115,845 2,580 May.................. 45'529 991 5,311 297 5,353 854 995 59;33O 53,075 1,480 4,774 116,497 2'6.37 June.................. 45’688 923 5’ 150 286 5; 397 963 1,007 59,415 53,318 1,332 4,765 115,006 2,464 July................... 45,968 1 ,035 5,101 ■ 280 5,494 852 1 ;042 59,772 53323 1,499 4,750 104,630 2352 Aug................. 46,232 1 ,'095 5,062 276 5^59 826 1,007 60,156 53,689 1,641 4,827 101,682 2.274 Sept................... 46,450 1 ,052 5,078 270 5; 603 850 1 ,031 60,334 54,073 1,438 4,823 99,377 2,191 Oct............... 46,737 1 ,023 4^13 260 5^88 832 i;037 60^91 54,178 1301 4,812 97,283 2', 151 Nov................... 46,953 1,131 4,848 254 5,'644 799 1,029 60 ,'658 54,326 1,463 4,869 i Also includes securities of foreign governments and international Note.—National Assn, of Mutual Savings Banks data; figure? 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 4, p. 1793. 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. < Data reflect consolidation of a large mutual savings bank with a commercial bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

116 SAVINGS INSTITUTIONS JANUARY 1967 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets Statement value: 1941........................................ 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945........................................ 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 I960........................................ 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961........................................ 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962........................................ 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 6,024 1963......................................... 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 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 1965........................................ 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 Boolv value: 1 963—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 1 9(>4—Dec............................ 149,470 12,343 5,594 3,785 2,964 62,112 55,735 6,377 55,197 4,534 7,141 8,143 1 965—Oct............................... 157,145 11,843 5,207 3,579 3,057 65,572 58,451 7,121 58,867 4,684 7,599 8,580 Dec.............................. 158,702 11,597 5,064 3,507 3,026 65.520 58,377 7,243 60,021 4,681 7,674 9,109 Nov.r.......................... 157,928 11,774 5,161 3,562 3,051 65,856 58,666 7,190 59,322 4,698 7,633 8,645 I9t6—Jan............................... 159,628 11,631 5,132 3,472 3,027 66,158 58,867 7,291 60,518 4,694 7,722 8,905 Feb.............................. 160,234 11,624 5,159 3,444 3,021 66,323 59,031 7,292 60,881 4,704 7,772 8,930 Mar............................. 160,798 11,424 5,031 3,375 3,018 66,827 59,558 7,269 61,288 4,725 7,849 8,685 Apr.............................. 161,476 11,332 5,019 3,293 3,020 67,100 59,821 7,279 61,710 4,734 7,955 8,645 May............................. 162,036 11,260 4,983 3,260 3,017 67,234 59,923 7,311 62,101 4,735 8,051 8,655 June............................. 162,511 10,950 4,803 3,192 2,955 67,476 60,147 7,329 62,547 4,744 8,163 8,631 July.............................. 163,488 10,985 4,852 3,219 2,914 67,982 60,713 7,269 62,969 4,777 8,288 8,487 Aug.............................. 163,937 10,950 4,840 3,214 2,896 68,057 60,698 7,359 63,336 4,791 8,449 8,354 Sept.............................. 164,491 10,883 4,807 3,188 2,888 68,024 60,738 7,286 63,683 4,816 8,673 8,412 Oct............................... 165,434 10,862 4,829 3,146 2,887 68,167 60,832 7,335 64,007 4,837 8,866 8,695 Nov.............................. 166,225 10,838 4.850 3,111 2,877 68,388 61,031 7,357 64,353 4,842 9,004 8,800 1 Issues of foreign, governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the Internationa! 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 Mote.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage End of U.S. assets2— Reserves loan period M ga o ge rt s ­ s G ec o u v r t i , ­ Cash Other 1 lia T b o il t i a ti l e s S c a a v p i i n ta g l s und a i n v d id ed B m or o r n ow ey e 3 d L p o r a o n c s e s i s n Other c m o e m n m ts i 4 t­ ties profits 1941.................... 4,578 107 344 775 6,049 4,682 475 256 6 1945 ................... 5',376 2,420 450 356 8',747 7,365 644 336 402 1959.................... 53,141 4,477 2,183 3,729 63,530 54,583 4,393 2,387 1,293 874 1,285 I960,.................. 60'070 4,595 2'680 4’131 71'476 62,142 4,983 2'l97 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 so: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 t ,499 2,614 1964 ................... 101'333 6,966 4^015 7,04! 119,355 101,887 7,899 5'601 2^239 1,729 2,590 1965—Nov......... 109,507 7,439 3,539 8,101 128,586 108,628 8,357 6,071 2,217 3,313 2 911 Dec.......... 110'202 7,405 3'899 7 ,’936 129'442 110'271 8,708 6^440 2'189 1 ,834 2,745 110,700 7,694 3,321 7,799 129,514 110,194 8,713 6,262 2,107 2,238 2,808 Feb.......... 111'246 7'842 3'391 7,868 130'347 110,722 8,730 6,102 2'104 2,689 2,937 Mar...... 112,001 7,850 3,249 8 018 131’118 111’560 8,721 6,070 2^223 2,544 3’281 Apr.......... 112,736 7,637 3'096 8,129 131,598 110'787 8,720 6,949 2^289 2,853 3 200 May......... 113'249 7,632 3,179 8,542 132 ,'602 111 J74 8^726 7,139 2'278 3’285 2,927 June 113,669 7,340 3,369 8,421 132,799 112,359 9,002 7,345 2,161 1,932 2,568 July.......... 113,750 7,304 2,818 8,288 132,160 110,851 9,005 7,887 1,992 2,425 2,302 113,897 7,353 2,717 8'463 132,430 110,975 9,002 7,748 1,814 2 891 2’062 Sept......... 114,004 7,472 2,628 8,527 132,631 111,606 9^011 7,697 1 ,642 2,675 1 ^843 Oct.r........ 113,998 7,926 2,682 8,582 132,888 111,550 9,018 7'745 I ,'493 3^082 1,689 Nov.......... 113,972 7,923 2,848 8^835 133,578 112,152 9,016 7,553 1,345 3,512 1,602 1 Includes other loans, stock in the Federal home loan banks, other * Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding 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 from a total of $42 million at the end of 1957. on annual reports. Data for current and preceding year are preliminary 3 Consists of advances from FHLB and other borrowing. even when revised. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FEDERALLY SPONSORED CREDIT AGENCIES 117 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Asset F s ederal home loa L n i a b b a il n it k ie s s and capital (s F M e e c d o o o e n r p r t d e g a r a l a a r g t N y i e o a m n A ti s a o s ) r s n k n a e , l t coo B pe f a o r n a r k t s iv es 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 Ad­ Deben­ Loans Loans v m b an t e e o c r m s e ­ s I m nv e e n s ts t­ p C a o d a n s e s i d ­ h t s B n a o o n n t d e d s s M p d b o e e e s m i r ­ t s ­ C s a to p c it k al M l g o ( a A a o g n ) r e s t ­ n t a u ( o L n r t e d e ) s s c a o t ( o i t A v o p e ) e s r ­ D t e u (L b re ) e s n­ co a d ( u A n is n d ) ­ t s D t e ( u L b re ) e s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 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 t ,743 1959............. 2J34 1 ,093 103 1,774 589 866 1,967 1 ,640 622 364 1,391 1,356 2,360 1'986 I960............. 1,981 1,233 90 1,266 938 989 2,788 2,523 649 407 1 ,501 1,454 2,564 2,210 1961............. 2,662 1,153 159 1 ’ 571 1,180 1,107 2,770 2,453 697 435 1 ,650 1,585 2,828 2,431 1962............. 3; 479 1 ,531 173 2,707 I ,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............. 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—Nov... 5,724 1,838 80 5,221 936 1,275 2,290 1 ,918 1,082 787 2,501 2,386 4,245 3,671 Dec... 5,997 I ,640 129 5,221 1 ,045 1,277 2,456 1 ,884 1 ,055 797 2,516 2,335 4,281 3,710 1966—Jan.. . 5,898 1,424 80 5,068 844 1,281 2,666 2,338 1,113 797 2,541 2,342 4,328 3,710 Feb... 5,739 1,539 91 5,050 796 1,292 2,912 2,397 1,145 819 2,601 2,404 4,385 3,813 Mar... 5,687 1 ,632 89 5,060 824 1,303 3,188 2,648 1,137 819 2,708 2,470 4,477 3,813 Apr... 6.516 1,187 76 5,435 812 1,325 3,358 2,820 1,148 859 2,843 2,602 4,553 3,813 May.. 6,704 1 ,510 84 5,895 841 1,335 3,502 3,144 1 ,106 835 2,947 2,744 4,647 3,980 June.. 6,783 1 ,953 160 6,309 1 ,025 1,339 3,61! 3,269 1,105 844 3,066 2,853 4,725 4,105 July.. 7,342 1 ,445 68 6,594 711 1,356 3,801 3,058 1,167 844 3,159 2,935 4,788 4,212 Aug... 7,226 I ,623 76 6,615 711 1,355 3,891 3,414 I , 190 882 3,139 2,990 4,853 4,212 Sept... 7,175 1,832 86 6,765 734 1,360 3,965 3,178 1 ,199 882 3,077 2,991 4,900 4,295 Oct... 7,249 1 ,982 100 6,959 769 1,365 4,051 3,125 1,219 957 3,008 2,909 4,926 4,295 Nov... 7,084 2,210 87 6,859 865 1,369 4,160 3,152 1,276 1,067 2,901 2,814 4.938 4.295 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 table below. Loans are gross sheet items arc capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks. Bonds, debentures, and notes are valued at par. They in­ for other agencies. clude only publicly offered securities (excluding, for the home loan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, NOVEMBER 30, 1966 Amount Amount Amount Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions of dollars) of dollars) of dollars) Federal home loan banks Federal National Mortgage Federal land banks—Cont. Notes: Association—Cont. Bonds: Jan. 25, 1967...................5.65 250 De bentures: Feb. 20, 1967...................4*4 126 Feb. 27, 1967.....................5.40 543 Sept. 10, 1970..................4*/8 119 Feb. 20, 1967..................5.60 125 Mar. 27, 1967.....................5.40 575 Aug. 10, 1971.....................4*/8 64 May 22, 1967.....................4 180 Apr. 25, 1967.....................5.55 656 Sept. 10, 1971.....................4>/z 96 July 20, 1967...................6.05 302 Feb. 10, 1972.....................5 i/8 98 Aug. 21, 1967.....................4% 179 Bonds: June 12, 1972.....................4>/8 100 Oct. 1, 1967-70...............41/2 75 Jan. 25, 1967.......................4*/2 375 June 12, 1973.....................41/4 146 Oct. 23, 1967.....................41/, 174 June 26, 1967.......................5^ 500 Feb. 10, 1977.....................4*/2 198 Oct. 23, 1967.....................5% 150 July 26, 1967......................5’4 535 Jan. 22, 1968.....................5>/8 130 Aug. 28, 1967.......................5% 590 Mar. 20, 1968.....................4% 111 Sept. 1 5, 1967..............4*4 185 Banks lor cooperatives May 20, 1968.....................5 >4 242 Sept. 27, 1967.......................6% 650 Debentures: June 20, 1968., . ..............4 186 Oct. 26, 1967..........................6 700 Dec. 1, 1966....................5.40 241 Aug. 20, 1968.....................4*4 160 Nov. 27, 1967...........................6 500 Feb. 1, 1967....................5.90 276 Mar. 20, 1969..................4% 100 Jan. 25, 1968............ 5% 250 Apr. 3, 1967.....................6% 295 July 15, 1969...................4*4 130 Mar. 1,1968.,..................4% 250 May 1. 1967.....................5.95 256 July 15, 1969...................4% 60 Mar. 25, 1969.......................5J/g 300 Oct. 20, 1969...................4*4 209 Feb. 20, 1970....................5*/8 82 Apr. 1,1970......................3*4 83 Federal National Mortgage Associa­ Federal intermediate credit banks July 20, 1970....................5(4 85 tion-secondary market opera­ Debentures: May 1,1971......................3*/2 60 tions Dec. 1, 1966...................5.15 346 Sept. 15, 1972....................3% 109 Jan. 3, 1967...................5.35 379 Feb. 20, 1973-78................4% 148 Discount notes................................. 622 Feb. 1, 1967...................5.35 393 Feb. 20, 1974.....................4*/2 155 Mar. 1, 1967..................5.60 310 Apr. 21, 1975....................4% 200 Debentures: Apr. 3, 1967..................5.60 283 Feb. 24, 1976.....................5 123 Dec. 12, 1966.......................4% 93 May 1, 1967....................5% 298 July 20,1976.....................5% 150 Feb. 10,1967.......................5 150 June 1, 1967........................6 278 Apr. 20, 1978.....................5*/B 150 May 10, 1967........................5Fio 250 July 3, 1967..................6.20 230 June 12, 1967........................5^o 400 Aug. 1, 1967..................5.95 298 Tennessee Valley Authority Oct. 11,1967.......................414 150 Short-term notes..................... 150 Mar. It, 1968........................35/8 87 Federal land banks Bonds: Sept. 10, 1968......................5% 350 Bonds: Nov. 15, 1985...................4.40 50 Apr. 10, 1969........................4% 88 Dec. 20, 1966.................4% 239 July 1, 1986.....................4% 50 Apr. 10, 1970........................4% 142 Feb. 15, 1967-72...............4>/8 72 Feb. 1, 1987.....................4>/2 45 Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

118 FEDERAL FINANCE JANUARY 1967 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 Budget Plus: Less: Equals: Plus: Less: Equals: p re a o c y r t t s s . . Cha in n ge In L v e e ss s : t , L N e o s n s ­ : Equals: net T fu r n u d s s t g In ov tr t a . ­ 1 r T e o ct t s a . l 2 Budget f T un ru d s s t 3 A m d en ju ts s t 4 ­ p T a o y t t a s l . & (d d a i e r g b e e c t n t . ) ag tr e u b n y s . t s & d ca e s b h t Net Cal. year—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,'324 115,030 96,' 944 28,396 5,069 120’271 -5,241 9,’ 084 2,684 619 5,780 1965 ............ 96,679 31 384 4,449 123,376 101,379 31'014 4,473 127,919 -4,543 4'673 1 '386 417 2'872 Fiscal year—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.......... 93,072 31,047 4,303 119,699 96,507 29,637 3,749 122,395 -2’696 6,933 2,356 250 4,328 1966.......... 104’727 34'853 4,451 134'480 106,978 34’864 4,026 137,’817 -3,337 6,710 3,562 530 2,'618 Half year: 1964—July-Dec...... 39,503 13,815 I ,926 51,347 48,092 14,323 904 61,511 -10,164 6,486 -494 234 6,745 1965—Jan.-June........ 53*569 17’232 2377 68'352 48'415 15^314 2,845 60,884 7,468 447 2,850 16 -2,417 July-Dec......... 43,110 14,152 2,072 55,024 52,964 15,700 1 ,628 67,035 -12,011 4,226 -1,464 401 5,289 1966—Jan.-June........ 61,617 20 ,’701 2,’379 79,456 54^014 19,164 2,398 70,782 8,’674 2384 5,026 129 -2,671 Month: 1965—Nov................. 8,106 3,012 358 10,728 9,105 2,707 -500 12 312 -1,584 2,978 519 75 2,385 Dec................. 9,553 1 ,935 602 !()’838 9'426 2,636 942 11,121 -283 -852 -935 107 '-24 1966—Jan........... 6,453 951 253 7,091 8,809 3,048 624 11,233 -4, 142 1,364 -1,897 84 3,177 Feb.................. 8*335 4,181 68 12'400 8,156 2’621 -486 11,264 1,136 1'568 1,749 74 -255 Mar................. 11*297 2,745 166 13,804 10,193 2,996 1,103 12 086 1’718 -I ,971 ' 2 -50 — 1,924 Apr.................. 9*929 2^215 224 11'853 8'362 3’335 372 11,325 ’528 -684 -1,170 '486 May................. 8,452 5'812 254 13,916 9’055 3’632 -134 12,821 1,095 3,847 4'023 66 -243 June. 17351 4'796 1 ,413 20,391 9,439 3 331 91 8 12*052 8,338 - 1'639 2'319 -45 -3,913 July................. 5*702 2'837 416 8,103 10,263 3,642 978 12’927 -4,824 -330 -333 65 -63 Aug........... 7,197 4,'973 330 11,764 11,042 2'627 - 1 ,537 15*206 -3,442 5,611 3,103 1 30 2,377 Sept................. 12*475 2,681 330 14’748 11'883 2’655 1 388 13’150 1,598 *350 142 118 ’ 89 Oct................... 5,811 2,069 286 7'523 10,977 2,684 1,056 12,604 -5,080 2,270 -698 34 2,935 Nov................. 7J94 3,717 336 10,698 10,386 2317 -651 13'654 -2,955 2; 468 989 134 1 '345 Effects of operations on Treasurer’s account Net operating transactions Net financing transactions ca C sh h a b n a g la e n c in e s Tre (e a n su d r o er f ’ s p e a r c i c o o d u ) nt Period Agencies & trusts Change Operating bal. s B u u rp dg lu e s t Trust Clearing gr i o n s s Held Treas­ Other de o fi r c it funds 3 accounts i M s s su e a o a c r f k n . 3 e c t e i I n G s n e v o U c e v . . s S t 3 t , , . p d d u i e r b e b l c i t c t T o r u e t a s s i u d r e y ac u c r o er u ’ n s t Balance B F a . n R k . s a l T a c o n c a a d t x n s . as n s e e t t s Fiscal year—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 I ,'880 — 2'775 5353 206 -1,080 11^036 939 9380 917 1965 -3,435 1,410 -804 1,372 -2,356 5,561 174 1,575 12,610 672 10,689 1,249 1966. . . .. -2,251 -12 -956 4,077 -3,562 2,633 132 -203 12,407 766 10,050 1 ,591 Half year: 1964—July-Dec......... -8,589 -508 -1,256 258 494 6,228 367 —3,741 7,295 820 5,377 1,098 1965—Jan,-June........ 5,154 1,918 452 1,114 -2,850 -667 -193 5316 12,610 672 10389 1 ,249 July-Dec......... -9,853 -1,548 -845 596 1 ,464 3,630 -528 -6,028 6,582 708 4,577 1,297 1966—Jan.-June........ 7,’602 1 336 -111 3.481 —5'026 -997 660 5,825 12307 766 10,'050 1 391 Month: 1965—Nov................. -999 305 -932 168 -519 2,810 -141 974 6,759 719 4,872 1,168 Dec................. 126 -701 233 -45 935 -807 -81 -177 6’582 708 4,577 1,297 1966-—’Jan.................. -2,356 -2,097 287 265 1 ,897 1,099 171 —1,076 5,506 823 3,360 1 ,323 Feb................. 179 1 ,560 -629 260 -1 349 1,308 -44 973 6,479 805 4,399 1,275 Mar................ 1,104 -251 987 341 ' -2 -2,312 90 — 224 6,255 521 4.444 1'290 Apr................. 1’567 -1,120 148 732 1,170 -1'416 627 453 6'708 512 4,491 I '705 May............... -603 2 J 80 -454 1,070 -4^023 2'777 -423 1,370 8,077 902 6,’003 1 ,'172 June................ 7,712 1 '265 -450 ’813 -2'319 -2’452 238 4 330 12’407 766 10’050 1 '591 July................ -4'561 -805 497 297 333 -627 -253 -4 613 7'794 1,232 5,147 1 ,415 Aug................. -3,845 2,347 — 1,996 470 -3,103 5,141 -1 39 — 850 6,944 1 ,'614 4314 1,316 Sept,......... '593 ' 26 939 22 -142 '328 100 1,666 8,610 760 6,415 1 ,435 Oct......... -5,165 -614 736 130 698 2,140 119 -2,194 6'417 809 4J81 1,427 Nov................ -2’993 1,101 -1,120 -55 -989 2’523 84 -1,618 4399 299 3,041 I ,’459 1 Primarily interest payments by Treasury to trust accounts and accumu­ 6 Seasonally adjusted data include accelerated corporate tax payments lations to U.S. employee trust funds. in 1965 and 1966; data for 1966 also include adjustments for initiation of 2 Includes small adjustments not shown separately. graduated withholding of personal income taxes and change in schedule 3 Includes net transactions of Govt.-sponsored enterprises. for depositing withheld and OASI taxes. * Primarily (1) intragovt, transactions, (2) noncash debt, (3) clearing accounts. Note.—Based on Treasury Dept, and Bureau of the Budget data. 5 Includes technical adjustments not allocated by functions. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FEDERAL FINANCE 119 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Int- Total W he I i n l t d h d ­ ivid O ua th l er C r o a r t p e o­ Total a L b n i a q d c u c t o o o r ­ H w ig ay h­ Total F R a I n . C R d A . e U m n p - l . g K 11 - - me X nts i Other Fiscal Year—1963... 109,739 38,719 14,269 22,336 13,410 5,521 3,405 19,729 15,128 4,107 2,187 1,241 1,815 6,571 2,604 1964... 115,530 39,259 15,331 24,301 13,950 5,630 3,646 21,936 17,405 4,037 2,416 1,284 1,702 7,148 2,499 1965... 119,699 36,840 16,820 26,131 14,793 5,921 3,782 22,138 17,833 3,817 2,746 1,478 2,097 6,030 2,686 1966... 134.480 42,811 18,486 30,834 13,398 5,888 4,037 25,527 21,243 3,773 3,094 1,811 2,303 7,256 3,472 Half Year: 1964—July-Dec... 51,347 17,732 3,598 9,989 7,398 3,089 1,947 9,379 7,536 1,594 1,170 729 897 1,008 1,463 1965—Jan.-June. . 68,352 19,108 13,222 16,142 7,395 2,832 1,835 12,759 10,297 2,223 1,576 749 1,200 5,022 1,223 July-Dec.. . 55,024 19,964 3,806 10,892 7,046 3,063 2,068 9,601 7,743 1,607 1,274 898 1,296 1,062 1,309 1966—Jan.-June.. 79,456 22,847 14,680 19,942 6,352 2,825 1 ,969 15,926 13,500 2,166 1,820 913 1,007 6,194 2,163 Month: 1965 -Nov....... 10,728 5,793 141 507 1,155 575 352 2,313 1,804 469 185 164 352 117 235 Dec........... 10,838 3,237 468 4,315 1,220 547 899 803 55 238 140 167 105 259 1966—Jan............ 7,091 1 ,412 2,727 682 1,007 384 309 547 349 147 292 136 166 107 229 Feb........... 12,400 5,948 1,038 573 1 ,038 395 348 3,717 2,895 785 207 129 155 644 239 Mar........... 13,804 3,440 936 7,244 1 ,133 545 302 2,154 2,037 69 272 168 149 2,057 365 Apr........... 11,853 1,082 6,259 2,440 921 443 286 1,552 1,332 178 491 151 166 1,526 317 May.......... 13,916 6,238 1,151 751 1,104 480 363 5,124 4,153 930 328 158 167 1,321 216 June.......... 20,391 4,726 2,569 8,251 1,149 578 361 2,834 2,735 59 228 172 204 539 797 July........... 8,103 3,374 351 878 971 361 357 1 ,912 1 ,726 142 215 158 179 221 286 Aug........... 11,764 5,095 173 606 1,249 539 530 3,999 3,185 770 224 179 174 198 263 Sept....... 14,748 3,792 2,608 4,547 1 ,156 550 354 1,894 1 ,806 46 214 170 191 158 334 Oct....... 7,523 3,434 277 797 1,065 n.a. 341 1,385 1,248 93 206 170 197 212 204 Nov........... 10,698 5,155 148 580 1 ,212 n.a. 375 2,839 2,329 469 196 179 216 185 358 Cash payments to the public Period Total 5 t f i N e d o n e n a s ­ a ­ e l aff I a n i t r i s , s S e p r a e a r ­ c c e h A t c u g u r r l e ­ i­ so N u u r r r e a a c ­ t l e ­ s t m r C a a o e n n r m s d c p e ­ . H d i c n e o o g v m u e & s l . . ­ l H w ab e e o l a f r l a , t r h & e , E t d i u on ca­ e V ra e n t­ s In e t s e t r­ G g e o r e v a n l t . ­ Fiscal year—1963..... 113,751 53,429 3,805 2,55 5,623 ’,535 5,777 -268 25,698 1,214 5,971 7,427 1,953 1964........ 120,332 54,514 3,492 4,17 5,761 ’,680 6,545 1,674 27,285 1,299 6,107 8,011 2,221 1965........ 122,395 50,790 4,583 5,09 5,353 ’,820 7,421 908 28,292 1,497 6,080 8,605 2,341 1966........ 137.817 58,464 4,271 5,93' 4,324 ,074 6,793 3,323 33,369 2,778 5,613 9,278 2,391 Half year: 1964—July-Dec..... 61,511 24,569 1,818 2,33. 3,642 ,547 4,288 534 13,722 639 2,947 4,230 1,142 1965—Jan.-June.... 60,885 26,219 2,766 2,76 1,712 ,270 3,131 375 14,562 852 3,134 4,376 1,203 July-Dec....... 67,035 27,085 2,225 2,831 3,369 ,694 3,955 1,142 16,373 705 2,587 4,403 1,257 1966—Jan.-June.... 70,781 31,377 2,044 3,09' 956 ,382 2,839 2,187 16,988 2,072 3,028 4,881 1,144 Month: 1965—Nov............... 12,312 4,555 534 47( G65 ''276 696 160 2,700 98 560 1,231 238 Dec.... 11,121 5,134 495 52 268 297 668 416 2,722 155 248 462 203 1966—Jan................. 11,233 4,680 374 47* 373 224 574 351 2,745 256 588 308 189 Feb... 11,264 4,534 81 45( 293 190 519 226 2,789 243 546 1,559 196 Mar... 12,086 5,652 427 51< 284 216 503 336 2,967 460 594 498 198 Apr.... 11,325 5,076 527 50 -188 201 439 959 2,793 247 346 502 197 May.. 12,821 5,025 461 56< 228 339 518 362 2,778 496 540 1,401 227 June.. 12,052 6,410 174 57 -34 212 286 -47 2,916 370 414 613 137 July.... 12,927 4,959 303 49 588 314 642 1,236 2,853 270 505 347 231 Aug... 15,206 5,675 438 44 1,380 401 797 33 2,923 359 496 1,435 230 Sept... 13,150 6,035 375 48 909 329 807 218 3,047 368 593 368 243 Oct..... 12,604 5,532 637 49' 583 323 763 362 3,043 281 600 373 207 Nov........... 13,654 5,557 529 451 137 325 690 -15 3,151 213 617 1,506 265 1964 1965 1966 1964 1965 1966 Item IV I II III IV I II III IV I II III 1 IV I II III Seasonally adjusted Not seasonally adjusted Cash budget: Receipts........................... 28.8 29.7 632.6 30.6 30.7 33.7639.6 36.3 24.3 30.7 37.7 29.2 25.8 33.3 46.2 34.6 Payments.......................... 29.8 30,2 32.4 32.1 33.1 36.9 36.0 40.0 30.6 28.3 32.6 33.1 34.0 34.6 36.2 41.3 Net................................... -1.0 -.4 .3 -1.5 -2.4 -3.2 3.7 -3.7 -6.3 2.4 5.1 -3.9 -8.1 -1.3 10.0 -6.7 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

120 U.S. GOVERNMENT SECURITIES JANUARY 1967 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 End of period d T g e r o b o t t s a s l i d d T g e i r o r b o e t s t a c s l t 2 Total Total Bills M C a c r e k a r t e t e i t f s a i b ­ le Notes Bonds 4 b C v i o b e o n r l n e d t­ ­ s T N o o ta n l m 5 arke S t i a n a b g v l s ­ c i S s p su ec e i s a l 6 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 ........5..9....5. 52. 1 29.0 1958—Dec.................................... 283,0 282.9 236.0 175.6 29.7 36.4 26.1 83.4 8.3 52.1 51.2 44.8 1959—Dec.................................. 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84.8 7.1 48.9 48.2 43.5 I960—Dec.................................... 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec.................................... 296.5 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 1962—Dec.................................... 304.0 303.5 255.8 203.0 48,3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—-Dec.................................... 310. 1 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec.................................... 318.7 317.9 267.5 212.5 56.5 ........5..9....0. 97.0 3.0 52.0 49.7 46.1 1965—-Nov.................................... 322.2 321.7 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 47.1 Dec............................. 321.4 320.9 270.3 214.6 60.2 .............. 50.2 104.2 2.8 52.9 50.3 46.3 1966—Jan..................................... 322.4 322.0 273.2 217.7 61.6 1.7 50.2 104.2 2,8 52.8 50.3 44.4 Feb.................................... 323.7 323,3 273.1 217.7 62,0 1.7 50.9 103.2 2.8 52.7 50.3 45.8 Mar.................................... 321.5 321 .0 270.6 215.2 59.5 1.7 50.9 103. 1 2.8 52.7 50.4 46,0 Apr.................................... 320. 1 319.6 270.3 215.0 59.5 1 .7 50.8 103.1 2.7 52.8 50.4 44.9 May................................... 322.8 322.4 269.1 213.8 59.5 1 .7 50.6 102.0 2.7 52.7 50.5 48.8 June................................... 320.4 319.9 264.3 209. 1 54,9 1 .7 50.6 101.9 2.7 52.5 50.5 51.1 July................................... 319.8 319.2 264,2 209. 1 54.9 1 .7 50.7 101,9 2.7 52.4 50.6 50.7 Aug............................. 324.9 324.4 266.5 211.4 57.9 7.0 45.9 100.6 2.7 52.4 50.6 53.2 Sept.................................. 325.3 324.7 266.9 211.8 58.3 7.0 45.9 100.5 2.7 52.5 50.6 53.1 Oct..................................... 327.4 326.9 270.4 215.3 62.3 7.0 45.6 100.5 2.7 52.4 50.7 51 .9 Nov................................... 329.9 329.4 272.3 217.2 63.8 5.9 48.3 99.2 2.7 52.4 50.8 52.6 1 Includes non-inicrest-bearing debt (of which $266 million on Nov. 30, 5 Includes (not shown separately): depositary bonds, retirement plan 1966, was not subject to statutory debt limitation) and guaranteed secu­ bonds, foreign currency series, foreign series, and Rural Electrification rities not shown separately. 2 Excludes guaranteed securities. Administration bonds; before 1954, armed forces leave bonds; before 3 Includes amounts held by U.S. Govt, agencies and trust Funds, which 1956, tax and savings notes; and before Oct. 1965, Series A investment totaled $16,057 million on Oct. 31, 1966. bonds. 6 Held only by U.S. Govt, agencies and trust funds. 4 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) Held by— Held by the public E pe n r d io o d f T g d r o e o t b s a t s l ag G t U a e r o n n u .S v c d s i t t . e , s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l s M b av a u n i t n k u g s a s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s e l . Savi I n n g d s i vidu O a t l h s er n F a i o t n a i r o n t e e n d i r g a ­ n l 1 i O m t n o v t i r h s e s c e s . r ­ 2 funds bonds securities 1941—Dec............... 64.3 9.5 2.3 52.5 21.4 3 7 8.2 4.0 .7 5 4 8,2 ,4 .5 1945—Dec............... 278.7 27.0 24.3 227.4 90 8 10 7 24.0 22.2 6 5 42.9 21,2 2.4 6.6 1947—Dec............... 257 0 34.4 22.6 200 1 68.7 12.0 23.9 14.1 73 46 2 19 4 2 7 5.7 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 45.6 205 13.0 1 L2 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 ' I 20.1 15.9 13.3 1964—Dec................ 318 7 60.6 37.0 221.1 64.0 5.7 11.1 17.9 21.2 48.9 2L I 16 7 14 5 1965—Nov............... 322.2 62.8 40.6 218.8 60.0 5.4 10.4 16,7 22.7 49 5 22.7 16. 5 14,9 Dec................ 321.4 61.9 40.8 218.7 60.9 5.4 10.4 15.5 22 8 49,6 22,7 16.7 14.7 1966-—-Jan................. 322.4 60.0 40,6 221.9 61.0 5.5 10.4 16.5 23 5 49.6 23 7 16.4 15.4 Feb................ 323.7 61.7 40.2 221.9 58.7 5.5 10.3 17.4 24 3 49.7 24 3 16.2 15.6 Mar......... 321 5 61.7 40.7 219.0 56 9 5 5 10.2 15.7 24 0 49 7 25 4 16.0 15.7 Apr......... 320 I 60.5 40 7 218.9 56 8 5.3 10.1 15.7 24.6 49.7 25 2 15.7 15.6 May.............. 322.8 64.5 41.5 216,9 54 9 5.2 10.0 16.5 24 7 49 7 24 8 15.6 15.3 June.............. 320.4 66.7 42.2 211.5 54 5 5.1 9.7 14.4 23 9 49.8 24 4 15 4 14 3 July............... 319 8 66.4 42.4 211.0 53.2 5 0 9.7 14 8 24 2 49 9 24 5 15 3 14,4 Aug............... 324.9 69.3 42. 5 213.1 54.4 5.0 9.7 15.2 24.0 49.9 24.8 15.4 14.7 Sept............... 325 3 69.2 42.9 213.2 54.2 5.0 9.7 14.6 23.7 49 9 25.5 15.2 15.3 Oct......... 327.4 68.0 43.0 216.4 54.7 4.8 9.6 15.9 23.7 50.0 r25 9 r!5.2 H6.5 Nov............... 329.9 68.9 43.9 217. 1 54.9 4.8 9.7 16.8 23.6 50.1 25.8 15.3 16,2 1 Includes investments of foreign balances and international accounts Note.—Reported data for F.R. Banks and U.S. Govt, agencies and in the United States. trust funds; Treasury estimates for other groups. 2 Includes savings and loan assns., dealers and brokers, nonprofit institutions, and corporate pension funds. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 U.S. GOVERNMENT SECURITIES 121 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 1963—Dec. 31....................................................... 207,571 89,403 51,539 37,864 58,487 35,682 8,357 15,642 1964—Dec. 31........................................................ 212,454 88,451 56,476 31,974 64,007 36,421 6,108 17,467 1965—Dec. 31........................................................ 214,604 93,396 60,177 33,219 60,602 35,013 8,445 17,148 1966—Oct. 31......................................................... 215,313 96,656 62,254 34,402 62,495 30,771 8,435 16,957 Nov. 30........................................................ 217,239 104,398 63,864 40,534 59,459 28,007 8,434 16,940 U.S Govt, agencies and trust funds: 1963—Dec. 31................................................ 11,889 1,844 1,366 478 1,910 3,021 2,178 2,936 1964—Dec. 31............................................. 12,146 1,731 1,308 424 2,422 3,147 1,563 3,282 1965—Dec. 31 ............................................... 13,406 1,356 968 388 3,161 3,350 2,073 3,466 1966—Oct. 31.................................................. 13,957 1,899 891 1 ,008 3,787 2,708 2,084 3,479 Nov. 30................................................ 14,191 2,414 1,098 1,316 3,711 2,500 2,087 3,479 Federal Reserve Banks: 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—Dec. 31................................................ 40,768 24,842 9,346 15,496 14,092 1,449 147 238 1966—Oct. 3!.................................................. 42,975 27,688 11,158 16,530 13,699 1,192 153 244 Nov. 30................................................ 43,912 34,890 11,837 23,053 7,614 994 153 261 Held by public: 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—Dec. 31................................................ 160,430 67,198 49,863 17,335 43,349 30,214 6,225 13,444 1966—Oct. 31.................................................. 158,381 67,069 50,205 16,864 45,009 26,871 6,198 13,234 Nov. 30................................................ 159,136 67,094 50,929 16,165 48,134 24,513 6,194 13,200 Commercial banks: 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—Dec. 31......................................... 50,325 18,003 10,156 7,847 19,676 11,640 334 671 1966—Oct ...31....................................... 45,005 14,218 6,782 7,436 19,576 10,334 404 473 Nov. 30........................................ 45,208 13,790 6,855 6,935 21,226 9,321 406 465 Mutual savings banks: 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—Dec. 31......................................... 5,241 768 445 323 1,386 1 ,602 335 1,151 1966—Oct. 31.......................................... 4,652 696 418 278 1,406 1 ,262 281 1,006 Nov. 30....................................... 4,600 660 422 238 1,490 1,171 278 1,000 Insurance companies: 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—Dec. 31........................................ 8,824 993 548 445 1,938 2,094 1 ,096 2,703 1966—Oct. 31.......................................... 8,154 723 394 329 1,947 1 ,726 1 ,076 2,682 Nov. 30......................................... 8,172 784 425 359 2,015 1,616 1 ,074 2,682 Nonfinancial corporations: 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—Dec. 31......................................... 8,014 5,911 4,657 1,254 1,755 225 35 89 1966—Oct. 31...................................... 6,473 4,997 3,391 1,606 1,209 213 6 49 Nov. 30......................................... 7,124 5,460 3,942 1 ,518 1,411 198 6 49 Savings and loan associations: 1963—Dec. 31......................................... 3,253 378 236 142 919 1,202 253 501 1964—Dec. 31......................................... 3,418 490 343 148 1,055 1,297 129 447 1965—Dec. 31......................................... 3,644 597 394 203 948 1,374 252 473 1966—Oct. 31.......................................... 3,755 676 470 206 1 ,069 1,278 263 468 Nov. 30......................................... 3,893 759 571 188 1,254 1,141 266 473 State and local governments: 1963—Dec. 31......................................... 12,453 4,637 3,869 768 941 1,502 1 ,591 3,782 1964—Dec. 31......................................... 15,022 4,863 3,961 902 2,014 2,010 1,454 4,680 1965—Dec. 31......................................... 15,707 5,571 4,573 998 1,862 1 ,894 1 ,985 4,395 1966—Oct. 31.......................................... 15,886 5,928 4,887 1,041 2,058 1,673 1,932 4,294 Nov. 30........................................ 15,656 5,821 4,798 1,023 2,135 1 ,494 1,921 4,285 All others: 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—Dec. 31......................................... 68,675 35,356 29,089 6,267 15,784 11,386 2,187 3,962 1966—Oct. 31.......................................... 74,456 39,831 33,864 5,967 17,744 10,386 2,235 4,261 Nov. 30......................................... 74,481 39,820 33,916 5,904 18,603 9,571 2,241 4,246 Note,-—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,920 commercial banks, 504 mutual savings Ownership. hanks, and 765 insurance companies combined; (2) about 50 per cent by Data complete for U.S. Govt, agencies and trust funds and F.R. Banks the 469 nonfinancial corporations and 488 savings and loan assns.; and but for other groups are based on Treasury Survey data. Of total mar­ (3) about 70 percent by 507 State and local govts. ketable issues held by groups, the proportion held on latest date by those “All others,” a residual, includes holdings of all those not reporting reporting in the Survey and the number of owners surveyed were: (I) in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

122 U.S. GOVERNMENT SECURITIES JANUARY 1967 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S Govt. Period agency Total Dealers and brokers securities W 1 y it e h a in r y 1 ea -5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U.S. Govt, m b C e a o r n c m k ia s ­ l o A th l e l r securities Other 1965—Nov.............................. 2,115 1,745 243 94 33 595 50 895 575 156 Dec............................... 2,187 1 ^691 286 166 44 637 55 1 ,000 495 146 1966—Jan............................... 2,129 1,660 261 164 43 600 59 970 501 130 Feb.. ............................ 2,285 1 ,753 374 127 31 662 59 944 621 161 Mar.............................. 2'100 1 ,650 231 180 38 683 69 851 495 188 Apr.............................. 1,823 1 ,550 156 91 26 515 51 740 517 218 May............................ 1,882 1 '564 202 86 30 514 78 746 543 221 June............................. I,'927 1 '614 186 94 33 646 69 729 483 278 July.............................. 1,820 1 ,560 155 76 29 607 64 726 423 284 Aug.............................. 1 J85 1 '497 189 62 38 573 78 721 413 175 2,004 1 ^682 198 82 43 742 101 730 432 170 Oct............................... 2,329 2,019 192 82 35 782 93 915 538 180 Nov.............................. 2.339 1 '863 334 1 18 24 848 94 896 501 204 Week ending— 1966—Nov. 2 2,150 1 ,769 285 67 28 612 96 870 571 151 9........1. ..,.8..5..6....... 1 ,445 313 79 19 573 84 757 441 89 16........................ 2'344 1'852 286 148 39 812 98 954 480 243 23....................... 2,534 2,085 309 117 24 976 86 949 524 210 30....................... 2'681 2'117 387 157 20 1 ,087 111 884 599 310 Dec. 7....................... 2,096 1 ,565 317 152 62 801 93 789 413 226 14....................... 2,906 2,321 394 147 44 1 ,265 149 967 525 284 21....................... 2,907 2.071 547 213 77 1'300 132 987 499 259 28....................... 2,743 2,055 481 134 72 1 ,035 110 1 .083 514 170 Note.—The transactions data combine market purchases and sales of ties under repurchase agreement, 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 i ties W 1 y it e h a in r y 1 ea -5 rs 5 O y v e e a r r s se a G c g u e o r n v it c t i y . e s Period sou A r l c l es Y N o ew rk w E h ls e e re ­ C t o io rp n o s r 1 a­ o A th l e l r City 1965—Nov......... 3,198 2,928 176 94 302 Dec...... 3'049 2’856 187 5 280 1965—Nov........... 3,016 829 519 1,451 217 Dec............ 3,'275 1,014 531 1'389 340 1966—Jan........... 2,651 2,725 -58 -16 244 Feb.......... 1^927 1 ;937 8 -20 316 2,708 767 652 906 383 Mar......... 1 '963 2'045 - 101 20 356 Feb............ 2,309 549 421 972 367 Apr.......... 2^867 2^798 6 63 814 Mar....... 1 '958 365 340 1,073 180 2,239 2,061 142 36 675 3'249 1,209 669 1J55 217 June........ 1 ;548 1 ;353 92 102 665 May.......... 2'787 744 602 1 1067 375 July......... 1 ,681 1,587 49 69 408 June 2'065 523 476 ’796 270 Aug.......... 2'188 2,001 181 46 208 July........... 2’127 623 481 737 287 Sept......... 2'229r 2'043r 108 78 269 2'229 394 430 925 480 Oct........... 2^500 2,224 109 166 353 2'410 725 615 731 340 Nov......... 3^756 2,925 639 193 429 Oct............ 2^346 508 580 823 435 Nov........... 3,'575 605 687 1.614 668 Week ending—■ Week ending—• 1966—Oct. 5.. 1,632 1,393 103 137 309 12. . 1,458 1,192 123 143 251 1966—Oct. 5... 1,867 560 516 429 362 19. . 2,763 2,495 128 140 313 12. 1,640 318 374 542 406 26. . 3,048 2,761 101 186 445 19... 2,183 340 551 840 452 26. .. 2,970 592 747 1,118 514 Nov. 2 . . 3,606 3,294 78 234 440 9. . 3,896 2,853 809 235 396 Nov. 2... 3,358 912 796 1,181 469 16. . 3,608 2,703 706 200 427 9. .. 3,595 738 813 1,345 700 23 . . 3,687 2,851 659 176 446 16. .. 3,499 562 708 1,538 690 30. . 3,873 3,071 657 145 448 23. 3,453 504 597 1,871 482 30. .. 3,734 519 575 1,825 815 Note.—The figures include all securities sold by dealers under repur­ chase contracts regardless of the maturity date of the contract, unless the 1 All business corporations, except commercial banks and insurance contract is matched by a reverse repurchase (resale) agreement or delayed companies. delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more clearly represent investments by the holders of the securities rather than Note.—Averages of daily figures based on the number of calendar days dealer trading positions. in the period. Both bank and nonbank dealers are included. See also Average of daily figures based on number of trading days in the period. Note to the opposite table on this page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 GOVERNMENT SECURITIES 123 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, DECEMBER 31, 1966 ([n millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Dec. 31, 1966................. 1,001 May 31, 1967................. 1,401 Apr. 1,1968...........D/4 212 Oct. 1, 1969..........4 6,255 Jan. 5^ 1967................. 2L30I 1 004 Oct. 1’ 1968...........11/2 115 Feb. 15’ 1970..........4 4,381 Jan. U’, 1967.................. 2,302 June 8’ 1967............ 1 ,001 Apr. L 1969...........U/i 61 Aug. 15’ 1970..........4 4,129 2^303 June 15, 1967................. 1,001 Oct. 1,1969.........ll/j 159 Aug. 15 1971..........4 2.806 Jan. 26, 1967................. 2302 June 22, 1967*............... 2,808 Apr. 1’1970...........U/2 88 Nov. 15' 1971...........3% 2,760 Jan. 31', 1967................. 1 ,001 June 22, 1967................. 1 ,006 Oct. 1'1970...........D/2 113 Feb. 15.’ 1972..........4 “ 2,344 Feb. 2' 1967................. 2,301 June 29, 1967 1 001 Nov. 15’ 1970..........5’ 7,675 Aug. 15 1972..........4 2,579 Feb, 9^ 1967................. 2'300 1 502 Apr. l'1971...........U/2 35 Aug. 15 1973..........4 3,894 Feb, 16^1967................. 2’302 July 31 1967........... 1 495 May 15' 1971..........5% 4,265 Nov. 15’ 1973..........4*4 4,355 Feb. 23 J 967................. 2'303 Aug. 31, 1967................ 1 ’501 Oct 1’1971..........J1/2 ' 12 Feb. 15,' 1974..........4% 3, 130 Feb. 28,' 1967................. 1^000 Sept. 30, 1967 .. 900 Nov. 15, 1971..........5% 1 ,734 May 15 1974..........4’4 3,592 Mar. 2’ 1967................. 2,301 Oct. 31, 1967 . 905 Nov. 15 1974..........3% 2,242 Mar. 9' 1967.............. . 2,305 Nov. 30; 1967................. 900 May 25' 1975-85.. .4’4 1 '217 Mar. 16^ 1967................ 2,304 June 15, 1978-83.. .3’4 1 ^577 M M M a a a r r r . . . 2 2 2 2 3 9 ’ ' ’ 1 1 1 9 9 9 6 6 6 7 7 7 * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 , , ’ 3 0 3 0 0 0 6 5 6 Ce A rti u f g ic . a 1 t e 5 s , 1967..........5l,4 5,919 J J D u u e n n c e e . 1 1 1 5 5 5 , , ’ 1 1 19 9 9 6 6 6 4 2 3 - - - 6 6 6 9 7 8 , . . . . . . . . 2 2 2 1 * ’/ / 2 4 2 2 I I , , , 5 4 7 4 2 9 5 9 0 N F M e o a b v y . . 1 1 1 5 5 5 ^ , ’ 1 1 1 9 9 9 8 8 8 0 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 3 3( ’4 4 2 I 1 , , J 6 9 2 1 0 3 1 5 Mar. 31’, 1967................. 1 ^400 Dec. 15, 1964-69.. .214 2,493 Aug. 15^ 1987-92.. .4’4 3,817 1,000 Treasury notes Mar. 15,’ 1965-70.. .2’4 2,289 Feb. 15; 1988-93...4 250 Apr. 13’ 1967................. 1,000 Feb. ’15, 1967.......... 3% 2,358 Mar. 15, 1966-71.. .24 1'366 May 15’ 1989-94.. .4% 1 ,560 Apr. 20’ 1967................. 1,001 Feb. 15^ 1967..........4 ” 5', 151 June 15, 1967-72.. .24 1 ,265 Feb. 15, 1990..........3’4 4,894 2,510 Apr. 1'1967...........I/2 270 Sept. 15^ 1967-72. ..24 1 ,952 Feb. 15' 1995..........3'" 2,'006 Apr. 27, 1967................. 1 ,000 May 15, 1967..........4% 9,748 Nov. 15' 1967...........354 2,019 Nov. 15; 1998..........3!4 4,395 Apr. 30,' 1967................. 1,401 Aug. 15,’ 1967...........3% 2^929 Dec. 15^ 1967-72... 2’/j 2,652 1 ^001 Aug. 15^ 1967..........4% 2 J 17 May 15’ 1968..... .3% 2,460 May H 1967................. 1 ;ooo Oct. 1'1967...........P/4 '457 Aug. 15' 1968...........3’4 3.747 May 18 1967.................. 1 ,000 Nov. 15, 1967_____4^ 8,135 Nov. 15’, 1968..........3% 1,591 May 25; 1967.................. 1 ,000 Feb. 15; 1968..........5’4 2; 635 Feb. 15, 1969..........4” 3,728 Apr. 1, 1975-80...2% 2,656 Note.—-Direct public issues only. Based on Daily Statement of U.S. * Tax anticipation series. Treasury. 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 Use of proceeds Total Period am de o li u v n ­ t Total G g o a e b t a n i l l o e i­ n r­ s R n e u v e e­ PHA’ G l U o o a .S v n t . s , State d S i p s a s t e n t a c r d t i i , c a t l Other2 ered 3 Total c E at d io u n ­ b r R i a d o n g a d e d s s i U tie ti s l ­ 4 H in o g u 5 s­ V a a e n i t d s e ’ r ­ O p p t o h u s e e r r ­ s auth. 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 10,069 10,201 3,392 688 2,437 727 120 2,838 1965................ 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11.538 10,471 3,619 900 1,965 626 50 3,311 1965-—Nov.. . . 1 ,043 836 191 17 24! 271 531 926 1 ,021 383 74 289 13 * 260 Dec....... 764 365 283 90 25 67 367 330 1,100 754 216 137 164 91 .........1.4.5 1966-—Jan........ 1.219 889 304 25 471 286 462 n.a. 1,184 388 330 152 2 413 Feb....... 867 614 240 13 190 172 505 n.a. 858 208 68 137 444 Mar.. . . 878 554 201 96 28 151 311 416 n.a. 868 380 25 159 99 205 Apr..... 1.21! 815 350 46 454 366 392 n.a. 1,194 231 105 141 2 617 May.... 906 507 378 2! 118 319 469 n.a. 905 251 134 280 237 June. .. . 1 .143 583 400 110 51 275 429 439 n.a. 1.140 506 I 18 200 1 10 207 July. . . . 699 406 273 20 174 244 281 n.a. 698 226 142 73 8 249 Aug...... 775 435 305 35 134 275 365 n.a. 773 279 32 103 6 353 Sept.. . . 1,023 439 447 120 18 65 580 378 n.a. 1 ,010 212 218 221 124 236 Oct....... r744 r538 472 33 208 r253 ^283 n.a. r738 '299 12 *•98 9 GIO Nov.. . . 929 564 354 ........... 1 1 228 315 386 n.a. 922 355 105 217 40 ........2..0.5 1 Only bonds sold pursuant to 1949 Housing. Act, which are secured s Includes urban redevelopment loans. by contract requiring the Public Housing Administration to make annual contributions to the local authority,. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser difference is in the treatment of U.S Govt, loans. and payment to issuer which occurs after date of sale. Investment Bankers Assn, data; par amounts of long-term issues * Water, sewer, and other utilities. based on date of sale unless otherwise indicated. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

124 SECURITY ISSUES JANUARY 1967 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Proposed use of net proceeds, all corporate issues 6 Noncorporate Corporate New capital Re­ Period tire­ Total U.S. U.S. Bonds Stock Total Other m o e f n t G U o . v S t . .2 G a c g o y e v n 3 t ­ , l S o a t c n a a d t l e 4 Other 5 Total Total P li u cl b y ­ v P at r e i­ ly f P er r r e e ­ d C m o o m n ­ Total m N o e n w ey 7 p p o u s r e ­ s s ri e t c ie u s ­ offered placed 1958................... 34,443 12,063 2,321 7,449 1,052 11,558 9,653 6,332 3,320 571 1,334 I 1,372 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 12^37 10,872 4314 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 1965................... 40,108 9’348 2'731 11'148 889 15,992 13 320 5 370 8,150 725 1 ;547 15^801 14,805 13,063 1 ,741 996 1965_ Oct......... 2,661 369 375 867 65 986 861 287 574 8 116 973 924 834 90 49 Nov........ 6,340 3,463 375 1 ,018 86 1,398 1,142 613 529 92 165 1,377 1,325 1,183 143 52 Dec........ 2,948 331 179 768 25 1 ,646 I ,487 326 1 ,161 87 72 I ,632 1 ,496 1 ,279 217 136 1966—Jan......... 3,021 475 1,176 30 1,339 1,152 460 692 119 68 1 ,325 1,302 1 ,214 88 22 Feb......... 3'008 345 503 '845 42 1,273 1,143 560 583 75 55 I ^259 1,237 1 ’068 169 22 Mar..... 4'250 457 410 848 54 2,482 2,065 753 1,311 21 396 2,452 2,446 2,039 407 7 Apr......... 3’668 426 392 I ,181 86 1 ,582 1 ,372 628 '743 28 182 1 359 1 ^553 1 ’ 399 154 7 May....... 3'182 412 699 '877 88 1,106 I ,037 481 556 13 56 1 ,095 1 ,058 1 ,000 58 38 June....... 5,072 397 1,030 1,118 100 2,427 1 ,616 832 784 74 737 2,391 2,364 2,245 I 19 27 July........ 3,407 41! 1 ,084 678 149 1 ,085 975 440 535 70 40 1 ,071 1 ,039 932 106 32 Aug........ 3,676 387 799 764 14 1 ,712 1 ,575 1,140 435 67 70 1 ,688 1 .670 1 .617 53 18 Sept........ 3,249 402 400 992 55 1 ,400 1 ,333 676 657 6 61 1 .384 1 ,382 1.114 268 2 Oct......... 2,589 408 450 736 7 989 853 499 354 31 105 971 925 879 46 46 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e ll r a c n ia e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ rities rities rities rities rities rities 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 J 89 15 707 1 '801 6 I960............................................... 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 1335 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 1965.............................................. 5,0(5 338 I ,'302 79 967 36 2,546 357 847 92 4,128 93 1965--Oct.................................... 273 10 77 5 53 13 158 9 92 3 272 8 Nov....... .................... 402 17 44 94 209 28 43 4 433 3 Dec.................................... 470 18 192 24 130 243 62 43 17 418 16 1966- Tan..................................... 353 14 114 3 155 388 5 141 151 Feb.................................... 530 6 100 8 94 ♦ 241 4 160 * 111 2 Mar................................... 977 7 160 373 340 301 294 Apr.................................... 692 4 154 2 148 364 76 119 1 May...................... 376 12 137 22 75 274 40 4 156 June....................... 1,137 14 145 6 207 3 322 4 276 276 2 July................................... '397 2 98 72 263 22 52 156 9 Aug................................... 518 15 167 2 243 313 1 318 112 Sept.. . ................. 643 91 63 2 81 198 307 Oct.. . 362 46 41 * 39 304 91 89 1 Gross proceeds are derived by multiplying principal amounts or $ 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 SECURITY ISSUES 125 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 ve s s .1 t. Other In c v o e s s . t 1 , Other I c n o ve s s .1 t, Other 1961....................... 17,515 6,999 10,515 9,194 4,024 5,170 3,867 4,454 1,171 1,804 2,696 2,650 1962....................... 14,308 6,457 7,852 8,613 3,749 4,864 3,440 2,255 1,140 1,567 2,300 688 1963....................... 15,641 8,711 6,930 10,556 4,979 5,577 3,138 1,948 1,536 2,197 1 ,602 -249 1964....................... 18,767 8,290 10,477 10,715 4,077 6,637 4,304 3,748 1,895 2,317 2,409 1,431 1965....................... 21,415 10,025 11,390 12,747 4,649 8,098 5,463 3,205 2,134 3,242 3,329 -37 1965—in............... 5,064 2,570 2,494 3,207 1 ,232 1,975 1,124 733 477 861 647 -128 IV............... 5,809 2,847 2,962 3,261 1,178 2,084 1,770 778 657 1 ,012 1,113 -235 1966—1................. 7,782 3,158 4,624 4,568 1,335 3,233 2,204 1 ,010 671 1,152 1.533 -142 II................ r7,645 2,354 ’•5,293 3,993 1,153 2,841 H,646 2,006 669 532 r977 1 ,475 Ill.............. 5,525 1 ,756 3,768 3,732 943 2,789 1 ,262 531 490 323 772 207 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B n o o nd 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 1961....................... 2,012 415 516 -447 71 -7 1,648 704 149 1 ,457 775 3,224 1962....................... 1,355 -242 294 -201 -85 -25 1 ,295 479 1,172 357 833 2,619 1963....................... 1,804 -664 339 -352 316 -19 876 245 438 447 1 ,806 1,696 1964....................... 1,303 -516 507 -483 317 -30 1 ,408 476 458 1,699 2,644 2,694 1965....................... 2,606 -570 614 -70 185 -1 1,342 96 644 518 2,707 3,319 1965—in............... 625 -210 223 -19 37 21 554 72 255 149 282 506 IV............... 612 -243 163 -10 52 -3 215 -189 124 130 918 1,193 (966—1.................. 1,440 -543 169 49 348 28 756 166 249 168 270 1,523 II................ 950 657 232 -72 166 648 679 119 549 157 264 r944 HI............... 1,198 58 143 -22 218 16 469 112 405 103 356 712 i Open-end and closed-end companies. exclude foreign and include offerings of open-end investment cos., sales of 1 Extractive and commercial and misc. companies. securities held by affiliated cos. or RFC, special offerings to employees, 3 Railroad and other transportation companies. and also new stock issues and cash proceeds connected with conversions 4 Includes investment companies. of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for Note.—Securities and Exchange Commission estimates of cash trans- that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C si a t s io h n 3 Other Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C si a t s io h n 1 Other 1955 .............. 1,207 443 765 7,838 438 7,400 1965—Nov... 360 163 197 34,533 1,847 32,686 1956.............. 1’347 433 914 9,046 492 8,554 Dec.. . 475 176 299 35,220 1,803 33,417 1957 .............. 1,391 406 984 8,714 523 8,191 1958.............. 1,620 511 1,109 13,242 634 12,608 1966—Jan.... 507 191 316 36,213 2,009 34,204 Feb... 440 229 211 36,178 2.094 34,084 1959.............. 2,280 786 1,494 15,818 860 14,958 Mar. . 592 244 348 36,173 2.040 34, (33 I960.............. 2,097 842 1,255 17,026 973 16,053 Apr... 538 255 284 37,136 2,107 35,029 1961.............. 2,951 1,160 1,791 22,789 980 21,809 May.. 478 216 261 35,453 2,278 33,175 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 June.. 380 194 186 35,429 2.337 33,092 July... 363 153 210 35,082 2,472 32,610 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Aug... 357 187 170 32,553 2,657 29,896 1964.............. 404 1,’875 1,528 29,116 1,329 27,787 Sept... 327 145 182 32,223 3,036 29,187 1965.............. 4,359 ^962 2; 395 35,220 1,803 33,417 Oct.. . 329 133 196 33,483 3,244 30,239 Nov... 295 143 152 34.497 3.206 31,291 t Includes contractual and regular single purchase sales, voluntary Note,—Investment Company Institute data based on reports of mem­ and contractual accumulation plan sales, and reinvestment of invest­ bers, which comprise substantially all open-end investment companies ment income dividends; excludes reinvestment of realized capital gains registered with the Securities and Exchange Commission. Data reflect dividends. 2 Market value at end of period less current liabilities. newly formed companies after their initial offering of securities. 3 Cash and depositss receivables, all U.S Govt, securities, and other short-term debt securities, less current liabilities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

126 BUSINESS FINANCE JANUARY 1967 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1965 1966 Industry 1961 1962 1963 1964 1965 I II III IV I ID III Manufacturing Total (177 corps.): Sales..................................................... 123,669 136,545 147,380 158,253 176,676 42,742 45,344 41,946 46,644 47,068 48,886 46,302 Profits before taxes..................................... 13,268 15,330 17,337 18,734 22,043 5,517 6,021 4,723 5,782 5,934 6,162 4,884 Profits after taxes........................................ 7,167 8,215 9,138 10,462 12,482 3,081 3,399 2,732 3,269 3,323 3,522 2,845 Dividends................................................... 4,730 5,048 5,444 5,933 6,541 1,411 1,629 1,435 2,066 1,569 1 ,740 1,631 Nondurable goods industries (78 corps.): 1 Sales...................................................... 49,362 52,245 55,372 59,770 64,635 15,453 16,131 16,320 16,732 17,299 18,374 18,399 Profits before taxes..................................... 5,602 5,896 6,333 6,881 7,818 1,804 1,985 2,014 2,014 2,132 2,334 2,296 Profits after taxes........................................ 3,225 3,403 3,646 4,121 4,798 1,112 1,213 1,222 1,251 1 ,295 1 ,404 1,387 Dividends.................................................... 2,031 2,150 2,265 2,408 2,541 606 607 617 711 650 668 673 Durable goods industries (99 corps.):2............ Sales............................................................. 74,307 84,300 92,008 98,482 112,041 27,289 29,214 25,626 29,912 29,769 30,492 27,903 Profits before taxes..................................... 7,666 9,434 11,004 11,853 14,225 3,713 4,036 2,709 3,768 3,802 3,828 2,588 Profits after taxes................................ 3,942 4,812 5,492 6,341 7,684 1,970 2,186 1,509 2,018 2,027 2,118 1 ,458 Dividends..................................................... 2,699 2,898 3,179 3,525 4,000 804 1,022 819 1,355 919 1 ,072 958 Selected industries: Foods and kindred products (25 corps.): Sales.......................................................... 12,951 13,457 14,301 15,284 16,345 3,868 4,082 4,194 4,200 4,331 4,491 4,705 Profits before taxes..................................... 1,440 1,460 1,546 1,579 1,710 388 433 452 436 438 488 504 Profits after taxes...................................... 682 698 747 802 896 201 225 234 236 231 257 264 Dividends.................................................... 397 425 448 481 508 124 125 126 133 137 142 139 Chemical and allied products (20 corps,): Sales......................................................... 12,606 13,759 14,623 16,469 17,938 4,238 4,492 4,565 4,642 4,861 5,195 4,801 Profits before taxes..................................... 1,979 2,162 2,286 2,597 2,878 679 758 734 707 764 850 783 Profits after taxes........................................ 1 ,034 1,126 1,182 1 ,400 1,627 386 424 409 409 431 475 441 Dividends..................................................... 833 868 904 924 926 214 213 215 285 221 224 234 Petroleum refining (16 corps.): Sales.......................................................... 14,483 15,106 16,043 16,589 17,878 4,404 4,449 4,454 4,571 4,811 5,195 5,476 Profits before taxes..................................... 1,237 1,319 1,487 1,560 1,946 440 473 504 530 580 586 622 Profits after taxes........................................ 1,025 1,099 1,204 1,309 1,555 363 386 400 406 442 449 476 Dividends.................................................... 528 566 608 672 752 182 183 187 200 203 207 204 Primary metals and products (34 corps.): Sales.......................................................... 20,234 21,260 22,116 24,195 26,530 6,614 7,091 6,657 6,167 6,522 7,447 7,309 Profits before taxes..................................... 1,999 1,838 2,178 2,556 2,951 768 865 695 623 691 933 857 Profits after taxes........................................ 1,067 1,013 1,183 1,475 1,704 436 493 402 373 399 537 490 Dividends.................................................... 843 820 734 763 818 195 200 202 221 216 218 230 Machinery (24 corps.): Sales.......................................................... 17,446 19,057 21,144 22,558 25,148 5,772 6,305 6,286 6,785 6,955 6,889 7,538 Profits before taxes..................................... 1 ,701 1,924 2,394 2,704 3,116 747 817 764 788 877 911 851 Profits after taxes........................................ 859 966 1,177 1,372 1,621 385 426 400 410 441 480 444 Dividends..................................................... 508 531 577 673 775 192 187 189 207 217 225 226 Automobiles and equipment (14 corps.): Sales.......................................................... 23,314 29,156 32,927 35,338 42,662 10,898 11,450 8,281 12,032 11,718 11,728 8,044 Profits before taxes.................................... 2,786 4,337 5,004 4,989 6,263 1,828 1,883 756 1,797 1,780 1,615 312 Profits after taxes....................................... 1,404 2,143 2,387 2,626 3,298 942 1,004 430 923 935 893 226 Dividends.................................................... 973 1,151 1,447 1,629 1,890 305 520 307 759 360 503 361 Public utility Railroad: Operating revenue....................................... 9,189 9,440 9,560 9,778 10,208 2,385 2,582 2,575 2,668 2,518 2,728 n.a. Profits before taxes..................................... 625 729 816 829 980 145 259 248 328 213 330 n.a. Profits after taxes........................................ 382 572 651 694 816 121 213 206 276 172 263 n.a. Dividends.................................................... 359 367 356 438 468 108 118 81 161 113 109 n.a. Electric power: Operating revenue............................... 12,478 13,489 14,294 15,156 15,961 4,227 3,822 3,901 4,011 4,456 4,063 4,268 Profits before taxes..................................... 3,349 3,583 3,735 3,926 4,116 1,154 949 1,036 977 1 ,215 987 1,153 Profits after taxes........................................ 1,883 2,062 2,187 2,375 2,568 712 597 626 632 758 632 702 Dividends..................................................... 1,374 1,462 1,567 1,682 1,833 467 438 437 491 473 486 475 Telephone: Operating revenue....................................... 8,615 9,196 9,796 10,550 11,320 2,732 2,790 2,854 2,944 2,992 3,091 3,135 Profits before taxes..................................... 2,478 2,639 2,815 3,069 3,185 783 766 830 806 851 907 911 Profits after taxes....................................... 1,233 1,327 1,417 1,590 1,718 420 419 447 432 460 488 487 Dividends..................................................... 867 935 988 1,065 1,153 279 284 294 296 302 309 317 1 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 2 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Belt System Consolidated, (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts, of American Telephone and Telegraph Co.), published reports of companies. and for 2 affiliated telephone companies. Dividends are for the 20 opera­ Railroads: Interstate Commerce Commission data for Class I line­ ting 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 BUSINESS FINANCE 127 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 s t 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 s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a n a l t l i s p o o u i n w t m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i t e s s d ­ co c a t n a l i l o s p o u n i w t m a ­ l p ­ ances 1 ances 1 1958 .............. 41.4 19.0 22.3 11.6 10.8 22.0 1965—I. . .. 74.5 30.7 43.8 18.1 25.7 35.2 1959.............. 52.1 23.7 28.5 12.6 15.9 23.5 11.... 74.5 30.7 43.8 18.8 25.0 36.0 1960.............. 49.7 23.0 26.7 13.4 13.2 24.9 III... 75.0 30.9 44,1 19.5 24.6 36.8 IV... 78.7 32.4 46.3 20.2 26.1 37.2 1961.............. 50.3 23.1 27.2 13.8 13.5 26.2 1962.............. 55,4 24,2 31.2 15.2 16.0 30.1 1966—1. . .. 82.7 34.1 48.7 20.9 27.8 37.7 1963............ . 59.4 26.3 33.1 16,5 16.6 31.8 IL... 82.8 34.1 48.7 21.1 27.6 38.5 1964.............. 67.0 28.4 38.7 17.3 21.3 33.9 III... 81.9 33.7 48.2 21.1 27.1 39. 1 1965.............. 75.7 31.2 44.5 19.2 25.3 36.3 1 Includes depreciation, capital outlays charged to current accounts, and Note.—-Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) 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.1 1961.............................. 148.8 304.6 40.7 19.2 3,4 133.3 95.2 12.9 155.8 1.8 110.0 14.2 29.8 1962.............................. 155.6 326.5 43.7 19.6 3.7 144.2 100,7 14.7 170.9 2.0 119.1 15.2 34.5 1963 ............................. 163.5 351.7 46.5 20.2 3.6 156,8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964......................... 172.3 372,6 47.1 18.8 3.4 170.6 114.0 18,8 200.3 2,7 139.6 17.2 40.7 1965—I......................... 175.1 378.4 44.4 18.3 3.3 174.6 117.1 20.6 203.2 2,8 141.1 16.8 42.5 II....................... 177.7 386.3 45.8 16.1 3.2 179.9 119.4 21.9 208.6 2,9 145,8 16.2 43.8 Ill..................... 180.7 395.4 45.6 15.8 3.6 185.2 123.1 22.1 214.6 3.1 150.0 17.2 44,3 IV..................... 183.4 407.9 49.2 16.7 3.9 189.6 126.3 22.1 224.5 3.1 157.2 19.2 45.0 1966—1......................... 186.0 413.7 46.9 16.9 3.9 192.5 130.2 23.4 227.7 3.8 157.5 19,1 47.3 H....................... 190.4 423.6 47.7 15.3 4.0 198.4 134,4 23.7 233.1 3.9 163.4 16.7 49.1 Ill.................. 191.5 431.4 46.9 14.6 4.2 202.8 139.4 23.5 239.9 4.4 167.1 17.9 50.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.-—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n bl ­ e Mining Railroad Other u P t u il b it l i i e c s C ni o c m ati m on u s ­ Other i a ( r n S a n . t A u e) a l 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......................................... 51,96 11.40 11.05 1.30 1.73 2.81 6.94 4.94 11.79 1966........................................ 60,56 14.04 12.97 1.48 1 .94 3.48 8.31 18.36 1965—1................................... 10.79 2.25 2.28 .29 .39 .58 1.32 1.08 2.59 49.00 II................................. 12.81 2.76 2.70 .33 .44 .77 1.71 1.24 2.85 50,35 in............................... 13.41 2.91 2.82 .32 .44 .72 1.88 1,22 3.10 52,75 IV................................ 14.95 3.48 3.24 .35 .46 .73 2.04 1.41 3.25 55,35 1966—1................................... 12.77 2.87 2.74 .33 .40 .75 1.60 1.26 2.83 58,00 II.................................. 15.29 3.51 3.27 .40 .55 1.00 2.09 1.42 3.06 60. 10 HI................................ 15.57 3.54 3.30 .37 .48 .82 2.36 1.36 3.33 61.25 IW............................... 16.93 4.12 3.66 .38 .51 .91 2.26 5.10 62.60 1 1 Includes trade, service, finance, and construction. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business, excluding agriculture. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

128 REAL ESTATE CREDIT JANUARY 1967 MORTGAGE DEBT OUTSTANDING (In billions of dollars) AU properties Farm Nonfarm Other Multifamily and Mortgage holders2 1- to 4-family houses commercial properties4 type 5 E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n ­ s ­ i a U c g i . e e S n s . ­ v o I i a t n d h n u d e d a i r ­ l s s h e A o r l l s d l ­ tu F i t i n c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h s ld e 3 ­ r h A e o r l l s d l ­ Total tu F i t i n i n o s a t n i n ­ s , i O ho e th r l s d e ­ r Total tu F i t i n i n o s a t n n i­ s , 1 O h e o t r h l s d e ­ r w u F V n r H i d A t A t e e - r - n ­ t C i v o e o n n n a ­ ­ l 1941........... 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945........... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12,2 6.4 12,2 7.4 4.7 4.3 26.5 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 63.7 31.4 77.2 215.6 1965........... 341.7 264.5 12.4 64.8 21.2 7.8 13.4 320.6 213.5 185.0 28.5 107.0 71.7 35.3 81.2 239.4 1966”......... 366.4 1965—1.... 317.7 245.8 11.6 60.3 19.5 7.2 12,3 298.3 200.7 173.4 27.4 97.5 65.3 32.2 77.9 220.4 II... 325.9 252.2 11.7 62.0 20.2 7.4 12.8 305.7 205.2 177.4 27.7 100.5 67.4 33.1 78.7 227.0 III. . 333.9 258.6 11.9 63.4 20.7 7.6 13.1 313,2 209,5 181 .5 28,0 103.7 69.5 34.2 80.0 233,2 IV... 341.7 264.5 12.4 64.8 21.2 7.8 13.4 320.6 213.5 185.0 28.5 107.0 71.7 35.3 81.2 239.4 1966—P. .. 348.2 269.3 13.5 65.4 21.8 8.0 13.7 326.5 216.7 187.7 29.0 109.8 73.5 36.2 82.1 244.4 IP... 355.6 274.4 14.4 66.8 22.5 8.2 14.2 333.1 220.4 190.7 29.7 112.7 75.4 37.3 82.6 250.5 IIP.. 361 .4 278.0 15.2 68.1 23.0 8.4 14.6 338.4 223.1 192.5 30.6 115.3 77.2 38.1 83.2 255.2 IV*.. 366.4 1 Commercial banks (including nondeposit trust companies but not savings and loan assns. trust depts,), mutual savings banks, life insurance companies, and savings s Data by type of mortgage on nonfarm 1- to 4-family properties alone and loan 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 Agricul­ available) included with “individuals and others.” ture and Commerce, Federal National Mortgage Assn., Federal Housing 3 Derived figures; includes debt held by Federal land banks and farm Admin., Public Housing Admin,, Veterans Admin., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 Derived figures; includes small amounts of farm loans held by Figures for first 3 quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Total FHA- VA- Con­ O n t o h n e ­ r Farm Total FHA- VA- Con­ O n t o h n e ­ r Farm Total in­ guar­ ven­ farm Total in­ guar­ ven­ 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 1961. 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,029 2,753 51 1962. 34.476 23,482 6,520 2,654 14,308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1963. 39,414 26,476 7,105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11,544 3,454 52 1964. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965. 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 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 II. 46,548 30,383 7,469 2,712 20,202 13,371 2,794 42,467 38,214 13,036 11,322 13,856 4,202 51 HI 48,353 31,574 7,641 2,700 21,233 13,926 2,853 43,539 39,153 13,412 11,368 14,373 4,334 52 IV. 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966—P.. 50,650 32,822 7,717 2,659 22,446 14,840 2,988 45,370 40,700 13,956 11,408 15,336 4,617 53 IP. 52,306 33,800 7,769 2,654 23,377 15,478 3,028 45,883 41,083 14,047 11,346 15,690 4,747 53 IIP 53,755 46,650 1 Includes loans held by nondeposit trust companies, but not bank States and possessions. First and third quarters, estimates based on FDIC trust depts. data for insured banks for 1962 and part of 1963 and on special F.R. inter­ 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. polations thereafter. For earlier years, the basis for first- and third-quarter Note.—Second and fourth quarters, Federal Deposit Insurance Corpo­ estimates included F.R. commercial bank call data and data from the ration series for all commercial and mutual savings banks in the United National Assn, of Mutual Savings Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 REAL ESTATE CREDIT 129 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other 1 Farm 1 Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other Farm 1945.............................................. 976 6,637 5,860 1,394 4,466 766 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 >02 43'502 to;176 6,395 26,931 3,400 1963.............................................. 9 J 72 8,306 1,598 678 6,030 866 50 >44 46'752 10;756 6,401 29'595 3,792 1964.............................................. 10'433 9,386 1'812 674 6,900 1,047 55'152 50’848 11,484 6,403 32,961 4,304 1965.............................................. 11 J37 9,988 1'738 553 7,697 1,149 60'013 55 J 90 12;O68 6,286 36,836 4; 823 1965—Oct.r................................. 937 876 160 49 667 61 58,867 54,148 12,007 6,324 35,817 4,719 Nov................................. 959 890 149 41 700 69 59'276 54'525 12,063 6,307 36,155 4,751 Dec.................................... 1 ,248 1,079 154 42 883 169 60’021 55,197 12;O94 6,292 36,811 4', 824 1966—jan..................................... 972 865 168 52 645 107 60,518 55,675 12,183 6,307 37,185 4,843 Feb.................................... 817 703 143 39 521 114 60'881 55 >88 12,246 6; 294 37;448 4^893 Mar.................................... 978 815 139 40 636 163 61,288 56^321 12^259 6,282 37,780 4,967 Apr.................................... 897 756 121 29 606 141 61,71(5 56,653 12,299 6,262 38,092 5,057 May................................. 816 709 93 31 585 107 62,101 56,980 12,310 6; 244 38 >26 5,121 June.................................. 908 830 107 34 689 78 62'547 57^381 12'330 6,225 38,826 5,166 July................................... 869 815 106 31 678 54 62'969 57'778 12,'335 6,210 39,233 5,191 Aug................................... 791 746 94 38 614 45 63'336 58,128 12,340 6^01 39,587 5,208 Sept................................... 781 735 83 35 617 46 63,683 58’457 12344 6,191 39,922 5,226 Oct..................................... 718 675 86 41 548 43 64i007 58,775 12,362 6,190 40,223 5,232 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because (I) 1959 and with “other” nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) Period Total 1 h s N c t o r o e m u n w c ­ e ­ H c p h o u a m r s ­ e e Total 2 F su H in re A ­ d - a g V n u t A e a e r - d ­ t C i v o e o n n n a ­ ­ l Period va A n d c ­ es R m e e p n a ts y­ Total t S e h rm or t­ 1 t L e o rm ng ­ 2 M de e p m o b si e t r s s’ tion 1945...................... 278 213 195 176 19 46 1945 1 913 181 1,358 5,376 1961....................... 2,882 2,220 2,662 1,447 1,216 1,180 1961........... 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1962...................... 4,111 3’294 3,479 2,005 1,474 1,213 1962....... 20,754 5,979 8,524 78,770 4,476 7,010 67,284 1963...................... 5,601 4 >96 4 >84 2,863 1,921 1,151 1963............ 24,735 7,039 9,920 90.944 4,696 6,960 79,288 1964...................... 5,565 5; 025 5,'325 2,846 2,479 1J99 1964............ 24,505 6,515 10,397 101,333 4,894 6,683 89,756 1965......... .......... 5,007 4,335 5,997 3; 074 2,923 1>43 1965............ 23,847 5,922 10,697 110,202 5,141 6,391 98,670 1965-—Nov....... 236 338 5,724 2,877 2,847 934 1965—Nov.. 1,825 431 834 109,507 5,108 6,432 97,967 Dec............ 400 128 5,997 3,074 2,923 1,043 Dec.. 1,996 491 865 110,202 5,141 6,391 98,670 1966-—Jan............. 386 485 5,898 3,071 2,826 843 1966—Jan. . 1,549 322 640 110,700 5,160 6,364 99,176 Feb............. 171 330 5,739 2,837 2,901 795 Feb.. 1,554 307 645 111,246 5,177 6,361 99,708 Mar....... 214 266 5,687 2,598 3,089 823 Mar.. 1,998 454 814 112,001 5,195 6,331 100,475 Apr............ 967 138 6,516 3,343 3,173 811 Apr.. 1 ,888 430 798 112,736 5,212 6,311 101,213 May....... 339 152 6,704 3,691 3,012 840 May. 1,696 390 773 113,249 5,236 6,293 101,720 June........... 171 92 6>83 3,865 2,918 972 June. 1,629 340 823 113,669 5,245 6,279 102,145 July............ 838 279 7,342 4,471 2,871 710 July.. 1,234 266 643 113,750 5,235 6,254 102,261 Aug.......... 146 262 7,226 4,625 2,601 698 Aug.. 1,314 272 722 113,897 5,246 6,236 102,415 Sept............ 99 150 7J75 4,627 2,548 727 Sept.. 1,119 241 572 114,004 5,253 6,203 102,548 Oct........ 300 226 7,'249 4,939 2,310 767 Oct... 947 208 473 113,998 5,251 6,182 102,565 Nov............ 104 269 7;084 4,993 2,091 863 Nov.p 870 189 421 113,972 5,257 6,169102,546 1 Secured or unsecured loans maturing in 1 year or less. 1 Includes loans for repairs, additions and alterations, refinancing, etc., 2 Secured loans, amortized quarterly, having maturities of more than not shown separately. 1 year but not more than 10 years. 2 Beginning with 1958, includes shares pledged against mortgage loans, and beginning with 1966, includes real estate sold on contract not acquired Note.—Federal Home Loan Bank Board data. by foreclosure. Note.—Federal Home Loan Bank Board data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

130 REAL ESTATE CREDIT JANUARY 1967 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 om M ew e o s rtga h i g s o E e t m i x s n ­ e g s e P c r t o s j­ 1 m p P e r i e r o m r n o t v y t p ­ s e ­ ­ 2 Total 3 h N om M ew e o s rtga h i g o s E e t m i x s n ­ e g s E pe n r d i o o d f Total Total s F u i H n re ­ A d - a g n V u t A e 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 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 1965P.............. 213.5 73 1 42.0 31 I 140.4 1965............................ 8’689 1’705 5,760 591 634 2^652 876 1 ,774 1964—1.......... 185.4 66.6 35.7 31.0 118.8 1965—Nov................. 824 156 550 61 57 243 79 163 11......... 189.8 67.3 36.3 30.9 122.5 Dec........... 780 165 533 38 43 228 77 151 HI........ 193.9 68.4 37.4 31.1 125.4 IV........ 197.6 69.2 38.3 30.9 128.3 1966—Jan................. 800 180 547 42 30 236 80 156 Feb.................. 639 134 378 96 32 190 69 121 1965—1.......... 200.7 70.1 39.0 31.1 130,7 Mar................. 753 160 447 68 78 163 59 104 II....2..0...5.2 70.7 39.7 31.0 134.4 Apr.................. 636 139 376 66 54 132 51 81 HP.. 209.5 72.0 40.9 31.1 137,4 May............. 608 137 361 56 55 167 62 104 IV'*. . .. 213.5 73.1 42.0 31.1 140.4 June................. 685 152 405 69 60 205 71 134 July.................. 604 136 368 42 58 219 72 147 1966—1^........ 216.7 74.1 43.0 31.1 142.6 Aug............... . 622 159 387 18 57 287 96 191 IP........ 220.4 74,6 43.7 30.9 145.8 Sept................. 610 149 367 27 257 96 161 IIP.... 223.1 75.2 44.4 30.9 147.8 Oct................. r508 140 275 '38 54 271 110 160 Nov.................. 446 130 238 26 51 247 HO 137 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase i Monthly figures do not reflect mortgage amendments included in annual totals. agreement. 2 Not ordinarily secured by mortgages. 2 Includes a small amount of alteration and repair loans, not shown separately; only such Note.—For total debt outstanding, figures are 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; VA-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 MORTGAGE DEBT OUTSTANDING ON INCOME PROPERTIES (In millions of dollars) (In billions of dollars) Mortgage holdings Mortgage transactions Com­ Nonfarm (during mit­ End of period) ments End of period Total Farm period Total FH in A ­ - g V u A ar - ­ d u i n s ­ ­ Total in F s H u A re - d C t o io n n v a e l n­ sured anteed ch P a u s r e ­ s Sales bursed 1945 ............................... 17.0 12.2 12.2 4.8 1961........................... 6,093 3,490 2,603 815 541 631 1961............................... 73.2 59.3 6.4 52.9 13.9 1962........................... 5’923 3,571 2,353 740 498 355 1962.............................. 85.1 69.9 7.2 62.7 15.2 1963........................... 4’650 3'017 I '634 290 1,114 191 1963 ............................... 99.0 82.2 7.5 74.7 16.8 1964........................... 4,412 2; 996 1,416 424 '251 313 1964............................... 114.0 95.1 7.9 87,2 18.9 1965........................... 4,731 3,404 1,327 913 200 793 1965*............................. 128.2 107.0 8.0 99.0 21.2 1965—Nov................ 4,559 3,255 1,304 155 674 1963—11......................... 91.7 75.5 7.4 68.1 16.2 Dec................ 4,731 3,404 1,327 205 793 Ill....................... 95.2 78.6 7.5 71.2 16.6 IV....................... 99.0 82.2 7.5 74.7 16.8 1966—Jan................. 4,948 3,588 1,360 246 62 923 Feb................. 5'215 3'811 1 '404 295 829 1964—1.......................... 101.9 84.6 7.6 77,0 17.3 Mar................ 5^528 4^077 1 ^451 344 750 II......................... 105.8 87.7 7.7 80,0 18. 1 Apr................ 5’744 4'268 1 ’476 250 691 Ill....................... 109.7 91.2 7.8 83,5 18.5 May,.............. 922 4'430 1 ,’492 209 650 IV....................... 114.0 95.1 7.9 87.2 18.9 June............... 6,082 4,581 1'501 194 625 July............... 6,319 4,787 1,532 265 511 1965—1.......................... 117.0 97.5 7.9 89.6 19.5 Aug................ 6'464 4'916 1 '548 180 512 II......................... 120.7 100.5 8.0 92.5 20.2 Sept................ 6'592 5,028 1 ’, 564 159 532 IIP...................... 124.4 103.7 8.0 95.7 20.7 O No c v t. . . . . .. . .. . .. . .. . . . .. . .. . . 6 6, , 8 7 9 31 1 5 5 , '2 1 7 4 2 6 1 1 , , 5 6 8 1 5 9 1 1 8 6 8 8 ........ 5 6.. 7 1.. 6 7 IVp..................... 128.2 107.0 8.0 99.0 21.2 1966—P........................ 131.6 109.8 8.0 101.8 21.8 IP....................... 135.2 112.7 8.0 104.7 22.5 Note.—Federal National Mortgage Assn, data including mortgages IIP..................... 138.3 115.3 8.0 107.3 23,0 subject to participation pool of Government Mortgage Liquidation Trust, but excluding conventional mortgage loans acquired by FNMA f H ro o m us in th g e A R dm FC in ., M a o n r d tg C ag o e m m C u o n ., i ty th e F ac D il e i f t e ie n s s e A d H m o i m n. es Corp., the Public De N b o t t O e u .— ts - t B an as d e i d n g o ” n t a d b a le ta ( se fr c o o m nd s p am rec e e d so in u g r c p e a s g a e s ), s a h n o d w n fo r f o ta r b “ le M i o m r m tg e a d g i e ­ ately above, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 REAL ESTATE CREDIT 131 TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t c n e t r t ) ­ c F c h ( e e a p e n r e s t g r ) e & * s M (y a e t a u r r s i ) ty L c r p ( a e o p r t n i a e i c t o n r e ) / (t d h c o p o P h l r u l u a i a c s s r r e . ­ e s o ) f (t a d h m L o o l o u o la a s u r n . n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h ( e e a p e n r s e g t ) r e & 1 s M (y a e t a u r r s i ) ty L c r p ( a e o p r t n i a e i c o t n r e ) / (t d h c o p o P h l r u l u a i a s c s r r . e ­ e s o ) f (t a h d m o L o u l o o l s a a u . r n n s o ) t f 1963....................... 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19.2 70,8 17.8 12.6 1964....................... 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20,0 71.3 18.9 13.4 1965....................... 5.76 .54 24.8 74.1 24.7 18.1 5.89 .50 20.4 72.0 19.7 14.1 1965—Nov............. 5,80 .54 25.0 74.9 25.1 18.5 5.91 .50 20.4 72.0 19.4 13.9 . Dec........5....7..8 .58 24.8 74.0 25.2 18.4 5,91 .51 20.6 72.4 20.2 14.5 1966—Jan.............. 5,81 .51 24.6 73.4 24.7 18.0 5.97 .49 20.6 72.6 19.9 14.3 Feb............. 5.85 .55 24,6 73.2 25.9 18,8 5.97 .51 20.3 72,0 20.2 14.4 Mar............ 5,90 .56 24,7 74.3 25.8 18.9 6.01 .53 20.9 72.5 20.3 14.7 Apr............. 5.99 .57 24.6 73.9 25,1 18.2 6.09 .54 20.6 72.2 20.3 14.5 May............ 6.02 .57 24.7 73.4 26.5 19.2 6.16 .56 20.6 71.8 20.6 14.7 June........... 6.07 .57 24.8 74.4 26.7 19.7 6.18 .47 20.0 70.6 21.0 14.7 July............ 6.12 .67 24.2 72.1 27. 1 19.3 6.24 .52 19.9 70.5 20.5 14.3 Aug........... 6.18 .83 25.4 74.0 27.3 20.1 6.35 .61 19.8 70.6 20.8 14.7 Sept....... 6.22 .83 24.3 71.1 27.0 19.0 6.40 .64 19.4 69,5 20.4 14.0 Oct............. 6.32 .80 23.6 71.0 27.3 19.2 6.49 .71 19.2 69.5 20.4 14. 1 Nov............ 6.40 .89 23.6 71.5 26.5 18.7 6.50 .74 19.5 69.5 20.4 14.1 1 Fees and charges—related to principal mortgage amount—include based on probability sample survey of characteristics of mortgages loan commissions, fees, discounts, and other charges, which provide originated by major institutional lender groups (including mortgage added income to the lender and are paid by the borrower. They exclude companies) for purchase of single-family homes. Data exclude loans for any closing costs related solely to transfer of property ownership. refinancing, reconditioning, or modernization; construction loans to home-builders; and permanent loans that are coupled with construction Note.—Compiled by Federal Home Loan Bank Board in cooperation loans to owner-builders. See also the table on Mortgages; New and with Federal Deposit Insurance Corporation. Data are weighted averages Existing Homes, p. 1806. DELINQUENCY RATES ON HOME MORTGAGES NONFARM MORTGAGE FORECLOSURES (Per 100 mortgages held or serviced) Rate Loans not in foreclosure Period (th N o u u m sa b n e d r s ) ( m pe o r r t c g e a n g t e o d f but delinquent for: structures) Loans in End of period fore­ Total 30 days 60 days o 9 r 0 m da o y r s e closure 1 1 9 9 6 6 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 3 6 . . 1 4 . . 4 3 2 7 1963........................................ 98.2 .45 1964................................ 108.6 .48 1961.......................... 3.10 2.27 .50 .33 .29 1965........................................ 116.7 .49 1962....................... 3.04 2.26 .50 .29 .30 1963 .......................... 3.30 2.32 .60 .38 .34 1965—1................................... 27.9 .48 1964......................... 3.21 2.35 .55 .31 .38 II................................. 30.1 .52 1965 ......................... 3,29 2.40 .55 .34 .40 m................................ 29.1 .50 IV................................ 29.6 .50 1965—1.................... 2,94 2.06 .54 .34 .37 IL .. .............. 3.00 2.18 .52 . 30 .38 1966—1................................... 28.8 .48 Ill.................. 3.20 2.30 .56 .34 .38 If................................. 30.8 .51 IV.................. 3.29 2.40 ,55 .34 .40 Ill............................... 29.3 .48 1966—1..................... 3,02 2.13 .55 .34 .38 II................... 2.95 2.16 .49 .30 .38 Note.—Federal Home Loan Bank Board estimates of number III. ................ 3.09 2.25 .52 .32 .36 of nonfarm mortgaged structures at end of period and of non­ farm properties acquired during period through foreclosure proceedings (excluding voluntary deeds in lieu of foreclosure and Note.—Mortgage Bankers Association of America data from reports on 1- defaults on real estate contracts). Data exclude Alaska and to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held Hawaii. by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. ' Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

132 CONSUMER CREDIT JANUARY 1967 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e i o l r e ­ co g O n o s t o h u d e m s r e r e a r n R n d i e z p m a a t o i i o r d n ­ Pe l r o s a o n n s al Total p S a l i y o n m a g n l e e s n ­ t a C cc h o a u rg n e ts S c e r r e v d ic it e PaPer loans 1 1939. 7,222 4,503 t ,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 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 70,461 54,158 22,433 13,856 3,405 14,464 16,303 6,117 5,871 4,315 1964, 78,442 60,548 25,195 15,593 3,532 16,228 17,894 6,954 6,300 4,640 1965. 87,884 68,565 28,843 17,693 3,675 18,354 19,319 7,682 6,746 4,891 1965--Nov.............................. 85,291 67,168 28,612 16,797 3,689 18,070 18,123 7,648 5,740 4,735 Dec............................... 87,884 68,565 28,843 17,693 3,675 18,354 19,319 7,682 6,746 4,891 1966--Jan............................... 87,027 68,314 28,789 17,566 3,634 18,325 18,713 7,666 6,107 4,940 Feb............................... 86,565 68,279 28,894 17,386 3,603 18,396 18,286 7,731 5,505 5,050 Mar.............................. 87,059 68,827 29,248 17,450 3,597 18,532 18,232 7,795 5,393 5,044 Apr............................... 88,184 69,543 29,597 17,597 3,602 18,747 18,641 7,836 5,670 5,135 May............................ 89,092 70,209 29,908 17,732 3,642 18,927 18,883 7,925 5,860 5,098 June............................. 90,070 71,194 30,402 17,959 3,677 19,156 18,876 7,901 5,908 5,067 July.............................. 90,650 71,862 30,680 18,165 3,711 19,306 18,788 7,844 5,888 5,056 Aug.............................. 91,483 72,640 30,918 18,390 3,755 19,577 18,843 7,849 5,973 5,021 Sept.............................. 91,639 72,829 30,793 18,564 3,771 19,701 18,810 7,814 5,993 5,003 Oct............................... 91,899 73,073 30,852 18,714 3,770 19,737 18,826 7,768 6,107 4,951 Nov.............................. 92,498 73,491 30,937 18,945 3,772 19,837 19,007 7,807 6,199 5,001 1 Holdings of financial institutions; holdings of retail outlets are in­ hold, family, and other personal expenditures, except real estate mortgage cluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Note.—Consumer credit estimates cover loans to individuals for house­ Statistics, 1965, and May 1966 Bulletin. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n c m k ia s ­ l fi S n c a a o l n s e . c s e u C n r i e o d n i s t fi s C n u a m o n n e c ­ r e 1 Other1 Total D st m e o p r e e a n s r t t­ 2 F st t u o u r r r n e e s i ­ A s a t p o n p r c e e li s ­ d m A ea o u l b e t i o r l s ­ e 3 Other 1939 .............................. 4,503 3,065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941.............................. 6'085 4'480 1,726 1,797 198 759 1^05 320 496 206 188 395 1945............................. 2'462 1,776 '745 '300 102 629 686 131 240 17 28 270 1960............................. 42,832 37,218 16,672 11,472 3,923 3,670 1 ,481 5,615 2,414 1,107 333 359 1,402 1961............................. 43'527 37'935 17,008 11,273 4,330 3,799 1 ,525 5,595 2,421 1 ;058 293 342 1,481 1962.............................. 48'034 41 '782 19,005 12,194 4,902 4,131 1 ,550 6,252 3,013 I ,’073 294 345 1 ,’527 1963.............................. 54,158 47,405 22,023 13,523 5,622 4,590 1,647 6,753 3,427 1,086 287 328 1,625 1964............................. 60'548 53’, 141 25^094 14,762 6'458 5 ;078 1 ,749 7,407 3',922 1,152 286 370 1 377 1965 ............................. 68,565 60'273 29,173 16i138 7,512 5,606 1 ,844 8,292 4,488 1 335 302 447 1320 1965-—Nov................... 67,168 59,567 28,855 15,963 7,436 5,465 1,848 7,601 4,101 1,167 297 443 1,593 Dec.................... 68'565 60^73 29,173 16,138 7*512 5,606 1 ;844 8,292 4388 1335 302 447 1,820 1966-—Jan.................... 68,314 60,202 29,201 16,106 7,447 5,598 1,850 8,112 4,419 1,208 300 448 1 ,737 Feb.................... 68 279 60'331 29’312 16,072 7^73 5,621 1 ;853 7,948 n.a. n.a. n.a. 451 n.a. Mar.. 68,827 60;863 29,684 16,106 7^593 5,630 1 ,850 7; 964 n.a. n.a. n.a. 459 n.a. Apr.. ................ 69'543 61,539 30,127 16,191 7^711 5; 670 1,840 8,004 n.a, n.a. n.a. 466 n.a. May................... 70,209 62’178 30’507 16,263 7,839 5; 695 1,874 8,031 n.a. n.a. 472 n.a. June.................. 71’194 63'097 31^013 16,454 8,009 5,742 11879 8,097 n.a. 480 n.a. July,........... 71 ,'862 63,745 31 ,'398 16,585 8,093 5; 791 1,878 8,117 n.a. n.a. n.a. 485 n.a. Aug................... 72^40 64'454 31,737 16,732 8'238 5; 846 1,901 8,186 n.a. n.a. n.a. 489 n.a. Sept.................. 72'829 64,613 31 ’778 16,759 8,324 5,858 ^894 8,216 n.a. n.a. n.a. 487 n.a. Oct..................... 73,073 64'792 31,878 16,771 8'391 5; 863 1,889 8,281 n.a. n.a. n.a. 489 n.a. Nov................... 73',491 65^46 31,978 16,790 8; 480 5,881 1,917 8,445 n.a. n.a. n.a. 490 n.a. 1 Consumer finance companies included with “other” financial insti- 3 Automobile paper only; other instalment credit held by automobile tutions until 1950. dealers is included with “other” retail outlets. 2 Includes mail-order houses. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 CONSUMER CREDIT 133 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Total P A u u r­ t p o a m pe o D r b i i r l e e c t s O g p c u o a o t m o p h n d e e e ­ r s r r e R m r t a e n i n o o p iz d n d a a ­ i ­ r s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s g O p c u o a o t m o p h n d e e e ­ r s r r m R iz lo o a e a n a d t p i n d e a o s r i n r n ­ s l P o o a e n n r a ­ s l chased loans 1939................................ 1,197 878 115 148 56 1939......................... 1,079 237 178 166 135 363 1941................................ 1,797 1,363 167 201 66 1941......................... 1'726 447 338 309 161 471 1945................................ 300 164 24 58 54 1945........................ '745 66 143 114 110 312 I960................................ 11,472 7,528 2,739 139 1,066 1960 ......................... 16,672 5,316 2,820 2,759 2,200 3,577 1961................................. 11,273 6,811 3,100 161 1,201 1961........................ 17,008 5,391 2'860 2^761 2 J98 3,798 1962................................ 12’194 7,449 3*123 170 l’452 1962........................ 19'005 6'184 3,451 2,824 2,261 4,285 1963................................ 13'523 8,228 3*383 158 1 754 1964................................ 14*762 8 701 3,889 142 2 030 1963......................... 22,023 7,381 4,102 3,213 2,377 4,950 1965............................... 16,138 9,241 4,429 123 2,345 1964......................... 25’094 8^91 4,734 3,670 2,457 5,542 1965......................... 29'173 10,310 5'721 4; 266 2,543 6,333 1965—Nov..................... 15,963 9,210 4,332 126 2,295 Dec...................... 16’138 9,241 4,429 123 2'345 1965—Nov.............. 28,855 10,220 5,645 4,172 2,553 6,265 Dec.............. 29'173 10^310 5,721 4,266 2'543 6,333 1966—-Jan...................... 16,106 9,187 4,460 1 19 2,340 Feb...................... 16,072 9’187 4 323 1 17 2*345 1966—Jan............... 29,201 10,314 5,740 4,293 2,511 6,343 Mar.............. 16’106 9,214 4*422 116 2’354 Feb............... 29,312 10,361 5,785 4,311 2384 6,371 Apr..................... 16’191 9’261 4’448 114 2*368 Mar............. 29'684 10'533 5'885 4,351 2'476 6,439 May........... 16,263 9,289 4,479 113 2,382 Apr.............. 30,127 10'699 5'967 4^423 2,481 6,'557 16^454 9,395 4,538 1 1 1 2’410 May............ 30,507 10,852 6^037 4,491 2,’502 6,’625 July..................... 16,585 9,457 4,'579 112 2’437 June............. 31;oi3 11;O75 6,124 4,581 2,529 6,704 Aug..................... 16*732 9^498 4^632 112 2 ’ 490 July.............. 31’398 11'219 6'157 4,713 2,555 6,754 Sept..................... 16'759 9,427 4*693 112 2’527 Aug.............. 31',737 11'339 6,172 4,795 2,580 6,851 Oct...................... 16,771 9'398 4,726 1 12 2,535 Sept............. 31,778 H '313 6,113 4,864 2,593 6,895 Nov..................... 16,790 9,395 4^36 1 10 2’549 Oct.............. 31,878 11,353 6,132 4,910 2,593 6,890 Nov.............. 31,978 IL378 6,157 4,967 2,583 6,893 See Note to first table on previous page. See Note to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal 1 1 9 9 3 4 9 1 . . 7 9 8 5 9 7 pap 1 e 2 8 r 1 2 g p o a o p d e 2 3 s r 6 4 i l z o a a ti n o 1 1 s n 5 4 loa 7 6 n 8 6 s 5 9 End of period Total b C m a c o i n e a m k r l ­ s ­ t O f u i i n c t n t i i s h o a a t e l i n n ­ r ­ s s m p t D o a e r e r n e 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 it 2 S c e r r e v d ic it e 1945 731 54 20 14 643 1960. 9,074 1,665 771 800 5,837 1961. 9^654 1'819 743 832 6*257 1939 ............. 2,719 625 162 236 1,178 518 1962. 10’583 2,111 751 815 6,906 1941............. 3,087 693 152 275 1’370 597 1945............. 3’203 674 72 290 I '322 845 1963. 11,859 2,394 835 870 7,760 1960.............. 13^196 3,884 623 941 3'952 436 3,360 1964. 13,285 2'699 997 933 8*656 1965 14^62 3,124 1,153 1 ,009 9*676 1961............. 14,151 4,413 723 948 3,907 469 3 691 1962.............. 15 J 30 4,690 766 927 4,252 505 3 990 1965-—Nov..................... 14,749 3,094 1,135 1,010 9,510 1963............. 16,303 5’,205 912 895 4,456 520 4,315 Dec.................... 14'962 3'124 1'153 1 ,'009 9,676 1964.............. 17,894 5,950 1,004 909 4,756 635 4 640 1965 ............. 19'319 6,587 1,095 968 5’055 723 4 891 1966- Jan...................... 14,895 3,100 1,149 1,004 9,642 Feb...................... 14*947 3'110 1 J55 1 '002 9,680 1965 —Nov... 18,123 6,555 1,093 725 4,291 724 4,735 Mar..................... 15,073 3,157 1'172 1,005 9,739 Dec... 19,319 6,587 1,095 968 5,055 723 4,891 Apr...................... 15^21 3,*204 1 J88 1'007 9,822 May.................... 15,408 3,258 1 ,203 1,027 9'920 1966—Jan. .. 18,713 6,574 1,092 855 4,509 743 4,940 June.................... 15,630 3,328 1 ,223 1,037 10,'042 Feb... 18,286 6,630 1,101 n.a. n.a. 746 5,050 July..................... 15,'762 3,'362 1 ,241 1 ,044 10;115 Mar... 18,232 6,676 1,119 n.a. n.a. 755 5,044 Aug............ 15,985 3,420 1,266 1,063 10,236 Apr... 18,641 6,717 1,119 n.a. n.a. 765 5,135 Sept............ 16,076 3,453 1,278 1,066 10’279 May. . 18,883 6,784 1,141 n.a. n.a. 788 5,098 Oct...................... 16,143 3^80 1 '286 1 '065 10*312 June. . 18,876 6,767 1,134 n.a. n.a. 824 5,067 Nov.................... 16,278 3,517 1 ,287 1,079 10;395 July.. . 18,788 6,720 1,124 n.a. n.a. 861 5,056 Aug... 18,843 6,718 1,131 n.a. n.a. 916 5,021 Sept... 18,810 6,692 1,122 n.a. n.a. 932 5,003 Note.—Institutions represented are consumer finance companies, credit Oct... 18,826 6,656 1,112 n.a. n.a. 898 4,951 unions, industrial loan companies, mutual savings banks, savings and Nov... 19,007 6,678 1,129 n.a. n.a. 878 5,001 loan assns., and other lending institutions holding consumer instalment loans. See also Note to first table on previous page. 1 Includes mail-order houses. -Service station and miscellaneous credit-card accounts and home­ heating-oil accounts. See also Note to first table on previous page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

134 CONSUMER CREDIT JANUARY 1967 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a su pe m r er mode R rn ep iz a a ir ti o a n n d l oans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.I N.S.A. S.A.i N.S.A. Extensions I960. 49,560 17,654 14,470 2,213 15,223 1961 48,396 16^007 14,578 2 068 15,744 1962. 55,126 19,796 15’,685 2 051 17’594 1963. 61,295 22,292 17,102 2 198 19,703 1964. 67,505 24335 19'473 2,204 21’393 1965. 75^508 27314 21'454 2’238 23,902 1965-—Nov.............................. 6,530 6,608 2 480 2,410 1,873 2,004 185 189 1,992 2,005 Dec.............................. 6,489 7,519 2 443 2,328 1 ,862 2,657 185 163 1 ,999 2,371 1966-—Jan............................... 6,544 5,586 2 340 2,001 1 ,983 1 ,684 176 130 2,045 1 ,771 Feb............................... 6,492 5,517 2 340 2,084 1,957 1 ,527 171 130 2,024 1,776 Mar.............................. 6’673 6,865 2 479 2,676 I ,959 I ,890 183 174 2,052 2,125 Apr.............................. 6^505 6’, 658 2 302 2386 I ^958 1 ,874 180 178 2,065 2320 May............................. 6^472 6’694 2 298 2,526 1 ;933 1 ,898 1 86 215 2,055 2^055 June............................. 6^675 7^236 2 419 2,746 1 ,944 2,013 189 215 2*123 2,262 July.............................. 6,732 6,670 2 383 2,'466 2,050 1,945 189 203 2,110 2,056 Aug.............................. 6,689 7,025 2 431 2^543 1’995 2,023 187 225 2,’076 2,234 Sept.............................. 6,578 6,189 2 387 2,070 1 ,958 1 ,935 175 187 2,058 1 ,997 Oct............................... 6,522 6,403 2 378 2^369 1 ^941 1 ,949 166 171 2'037 1,914 Nov.............................. 6’657 6,611 2 461 2,346 1 ,947 2,044 166 168 2,083 2,053 Repayments 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 l'996 16,206 1963......................................... 55,171 19,400 15,850 2,038 17,883 1964........ .......... 61,121 21,676 17,737 2,078 19,630 1965......................................... 67,495 24,267 19,355 2,096 21,777 1965—Nov.............................. 5,831 5,955 2,148 2,193 I ,683 1,700 176 177 1,824 1,885 Dec.............................. 5'855 6,120 2,107 2397 ! ,720 1,760 175 176 1 ,853 2,087 1966—Jan............................... 5,947 5,837 2,115 2,055 1,778 1,811 176 171 1,878 1,800 Feb............................... 5,954 5,552 2,135 1,979 1,781 1,707 174 161 1,864 1,705 Mar.............................. 6,024 6,317 2,216 2,322 1,708 1,826 176 180 1 ,924 1 ,989 Apr.............................. 5,974 5,942 2,145 2jl37 li729 1,727 175 173 1 ,925 1,905 May............................. 5,979 6,028 2,159 2,215 1 '784 1,763 172 175 1,864 1,875 June............................. 6,126 6,251 2,211 2352 1 367 1,786 176 180 1372 2,033 July.............................. 6,168 6,002 2'238 2,188 1 '803 1,739 174 169 1 ,953 1,906 Aug,............................ 6'087 6347 2,223 2,305 1 '792 1,798 172 181 1,900 1 ^963 Sept,............................. 6JO3 6,000 2313 2,’195 1 ,784 1,761 168 171 1 ,938 1,873 Oct....................... 6,142 6J59 2344 2,310 1'820 1 ,799 169 172 1,909 1 ;878 Nov.............................. 6313 6,193 2355 2,261 1,836 1,813 169 166 1 ,953 1,953 Net change in credit outstanding 2 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........ ......... 6,124 2,892 1,252 160 1,820 1964........ .......... 6,384 2,759 1,736 126 1,763 1965......................................... 8,013 3,647 2,099 142 2,125 1965—Nov.,......................... 699 653 332 217 190 304 9 12 168 120 Dec.............................. 634 1,399 336 231 142 897 10 -13 146 284 1966—Jan............................... 597 -251 225 -54 205 -127 0 -41 167 -29 Feb............................... 538 -35 205 105 176 -180 -3 -31 160 71 Mar.............................. 649 548 263 354 251 64 7 -6 128 136 Aor................... 531 716 157 349 229 147 5 5 140 215 May............................. 493 666 139 311 149 135 14 40 191 180 June............................. 549 985 208 494 177 227 13 35 151 229 July.............................. 564 668 145 278 247 206 15 34 157 150 Aug,................. 602 778 208 238 203 225 15 44 176 271 Sept.............................. 475 189 174 -125 174 174 7 16 120 124 Oct............................... 380 244 134 59 121 150 -3 -1 128 36 Nov.............................. 444 418 206 85 111 231 -3 2 130 100 1 Includes adjustments for differences in trading days. sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less repay- the amount of extensions and repayments without affecting the amount ments. 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 anil Monetary Statistics^ 1965, financing charges. Renewals and refinancing of loans, purchases and and May 1966 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 CONSUMER CREDIT 135 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p fi a n n a i n es ce Ot i h n e s r ti t f u in ti a o n n c s ial Retail outlets Period S.AJ N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.i N.S.A. Extensions 1960......................................... 49,560 18,269 11,456 12,073 7,762 1961......................................... 48,396 17,711 10,667 12>82 7,736 1 %2......................................... 55,126 20,474 11,999 13,525 9,128 1963 ....................................... 61,295 23,344 12,664 14,894 10,393 1964......................................... 67,505 25,950 14,020 16,251 11,284 ........................................ 75 >08 29,738 15,075 18,120 12,575 1965-—Nov.............................. 6,530 6,608 2,659 2,517 1,267 1,293 1 ,512 1 ,574 1,092 1,224 Dec.............................. 6,489 7,519 2,610 2,579 1 ’,291 1,425 1 ‘514 1,788 1 ,074 1,727 1966-—Jan........................ 6,544 5,586 2,500 2,240 1,270 1 ,101 If553 1,298 1,221 947 Feb............................... 6,492 5,517 2,517 2,243 1,230 1,057 1 559 1 >38 1,186 879 Mar.............................. 6'673 6,865 2,'619 2,784 U73 1,318 1..573 1 >34 1 ,208 1,129 Apr............................. 6,505 6,658 2*539 2,717 1>26 1,225 I.-559 1,579 I; 181 t>37 May............................. 6,472 6,694 2,547 2,722 1,228 1 ,254 1.547 1,600 1 >50 1,118 J une............................. 6 >75 7>36 2'6t 9 2,912 1'260 1,383 1 >43 1,772 1 >53 1 > 69 July.............................. 6,732 6,670 2,673 2,717 1 ,'255 1 >65 1 ,593 1 >77 1,211 1,111 Aug...................... 6 >89 7 >25 2'683 2,819 1 ;260 I ,336 I >89 1 >13 1 >57 1 >57 Sept.............................. 6,578 6,189 2',634 2,422 1,*242 1 >62 1 ,587 1,517 1,115 1,088 Oct.. ........................... 6,522 6,403 2,583 2,520 I ',226 1 >35 1,582 1,505 1,131 I >43 Nov............................ 6,657 6,611 2',666 2,495 I; 256 1 >41 1.613 1>31 1 >22 1,244 Repayments I960. 45,972 16,832 10,442 11,022 7,676 1961 47,700 18,294 10,943 11>15 6,749 1067 50,620 18,468 11,434 12,593 8,125 1963 ....................................... 55,171 20,326 12,211 13,618 9,016 1064 ................... ........... 61,121 22,971 13*161 14,825 10,164 1965 67;495 25;663 13,699 16,443 11,690 1965-—Nov.................... 5,831 5,955 2,264 2,284 1,194 1 ,206 1 ,577 1,436 996 1,029 Dec............................... 5'855 6,120 2^252 2,259 1 >03 1 ,250 1 j101 1,575 999 1,036 1966-—Jan................. 5,947 5,837 2,273 2,212 1,202 1,133 1,406 1,365 1,066 1,127 Feb............................... 5*954 5,552 2;292 2,132 I >37 1 ,091 1,420 1,286 1,105 1 >43 Mar............ . 6 >24 6,317 2; 299 2,412 1 >75 1 >84 1 >63 1,508 1 ,087 1 > 1 3 Apr.............................. 5,974 5,942 2,293 2,274 1,129 1,140 1,442 1>31 1,110 1 ,097 May............................. 5,979 6,028 2; 270 2,342 1 >64 1 >82 1 ,414 1,413 1,131 1 >91 June.......................... 6,126 6^51 2,348 2,406 1 ,172 1 ,192 1 >01 1,550 1,105 1 >03 July.............................. 6'168 6,002 2*382 2,332 I >80 1,134 1 >76 1 >45 1,130 I ,091 Aug,............................. 6'087 6,247 2*, 362 2,480 1 J79 1 >89 1 >58 1 >90 1 >88 I >88 Sept.............................. 6,’103 6,000 2; 396 2,'381 1 ,156 1 >35 1481 1,426 1 ,070 1,058 Oct............................... 6*142 6,159 2,400 2,420 1,193 1,223 1 j172 1,438 1,077 1 >78 Nov.............................. 6,213 6,193 2315 2,395 1 >58 1 >22 1 >80 1,496 1 >60 1,080 Net change in credit outstanding 2 I960 3,588 1,446 1,152 1,051 -61 1961......................................... 696 335 -199 578 -20 1962......................................... 4.506 1,997 921 932 656 1963......................................... 6,124 3,018 1 ,329 1,276 501 1964......................................... 6'384 3,065 1 >39 1,426 654 106S .............. ... 8,013 4,075 1,376 1,677 885 1965- Nov................. 699 653 395 233 73 87 35 138 96 (95 Dec.............................. 634 1,399 358 320 88 175 13 213 75 691 1966-—Jan............................... 597 -251 227 28 68 -32 47 -67 155 -180 Feb............................... 538 -35 225 111 93 -34 39 52 81 -164 Mar............................. 649 548 320 372 98 34 10 126 121 16 Apr............................... 531 716 246 443 97 85 17 148 71 40 May,............... 493 666 277 380 64 72 33 187 19 27 June............................. 549 985 271 506 88 191 42 222 48 66 July.............................. 564 668 291 385 75 131 17 132 81 20 Aug...................... 602 778 321 339 81 147 31 223 69 69 Sept.............................. 475 189 238 41 86 27 06 91 45 30 Oct............. 380 244 183 100 33 12 10 67 54 65 Nov.............................. 444 418 251 100 -2 19 33 135 62 164 i Includes adjustments for differences in trading days. payments for some particular holders do not equal the changes in their 2 Net changes in credit outstanding are equal to extensions less repay­ outstanding credit. Such transfers do not affect total instalment credit ments, except in certain months when data for extensions and repayments extended, repaid, or outstanding. have been adjusted to eliminate duplication resulting from large transfers See also Note to previous table. of paper. In those months the differences between extensions and re­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

136 INDUSTRIAL PRODUCTION: S.A. JANUARY 1967 MARKET GROUPINGS (1957-59 = 100) 19 p 5 r 7 o - ­ 59 1965 1965 1966 aver­ Grouping p ti o o r n ­ age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index 100.00 143.4 146.7 149,0 150.6 152.4 153.7 153,9 155.3 156.5 157.2 158.0 157.7 158.8 158.6 Final products, total........................... 47.35 142.5 148.0 148.9 150.3 152.1 152,5 152.9 153.7 154,9 155.3 156.4 156.3 158.4 158.4 Consumer goods............................ 32.31 140.3 143.7 144,2 144.6 146.1 146.2 146.4 146.2 147.1 146.5 147.1 146.5 148.9 148.4 Equipment, including defense. . . . 15.04 147.0 157.3 159.0 162.6 164.8 166.2 166.9 169,8 171,4 174.4 176.4 177.4 179.0 180.1 Materials............................................ 52.65 144.2 146.1 148.8 150.9 152.6 154.4 154,5 157.1 158,0 158.8 159.6 159.2 159.6 158.8 Consumer goods Automotive products................. 3.21 167.2 168.5 169.1 168.1 167.9 170.0 168.4 160.7 162,3 154.5 146.4 150.7 168.5 163.3 Autos...................................... 1.82 182.6 182.5 182.4 180.3 177.8 180.5 178.9 166,0 167,8 151.5 141 .7 148.6 177.8 166.7 Auto parts and allied products 1.39 146.8 150,0 151.5 152.0 155.0 156.2 154.6 153.6 155,2 158.6 152,7 153.5 156.2 158.9 Home goods and apparel.......... 10.00 143.8 147.9 151.0 150.9 151.1 151.3 153.8 154.0 153.8 152.3 152.8 151.3 153.4 152.4 Home goods............................. 4.59 154.8 159.7 165.8 166.8 165.7 164.1 168.4 169.9 168.3 168.0 168,9 166.0 170.1 168.9 Appliances, TV, and radios. 1,81 152.3 157.2 163,7 166,3 160.5 156.2 166.7 165.9 163,9 165.5 165.0 159.3 170.2 165.4 Appliances'......................... 1.33 153.3 156.5 162.0 163.2 163.1 150.6 167.9 165.5 165.2 171.1 166.7 160.1 171,7 162. 1 TV and home radios........ .47 149.8 159.3 168.7 174.8 153.1 171.8 163.0 166.9 160,3 149.8 160.2 157.1 166.0 174.9 Furniture and rugs.............. 1.26 154.3 157.4 161.0 163.3 164.0 165.5 166.3 169. 1 170, I 165.2 168.0 165.9 164.4 165.6 Miscellaneous home goods.. 1.52 158.2 164.5 172.2 170.2 173.4 172.5 172.2 175.5 171,9 173.2 174,2 173.9 174.6 175.7 Apparel, knit goods, and shoes 5.41 134.5 137.9 138.5 137.5 138.7 140.4 141.4 140.5 141,6 139.0 139. 1 138.8 139.3 Consumer staples........................... 19.10 134.0 137.3 136.5 136.7 139.4 139.5 138.9 139.7 141.6 142.1 144.2 143.3 143.2 144.2 Processed foods................................. 8.43 122.2 124,5 123.2 123.1 125.8 125.2 125. 1 123,9 126.4 126.0 127.9 127.9 126.0 126.9 Beverages and tobacco............ 2.43 127.2 131 .0 128.8 129.7 131.1 133.6 130.2 129.5 131.5 130.2 134.0 131 .0 133.1 Drugs, soap, and toiletries................ 2.97 157.0 162.5 163.2 164.0 167.2 168,6 167.3 173.4 174,7 174.5 175.4 176.1 178.7 181.8 Newspapers, magazines, and books. 1.47 127.0 129.3 130.4 131.9 133.6 134.2 134.1 136.9 138,5 138.9 138.2 136.7 137.9 139.2 Consumer fuel and lighting.............. 3.67 149.4 153.3 152.7 151.6 155.3 154.7 154.6 155.8 157.1 161,1 165.0 162.5 161.9 Fuel oil and gasoline..................... 1.20 122.4 126.6 126.4 125, 1 124.0 125.2 (28.4 128.7 128.6 128.8 129.1 131 .8 134.0 130.9 Residential utilities......................... 2.46 162.6 166.3 165.6 164.5 170.5 169.0 167.4 169.0 171 .0 176.8 182.5 177.4 175.5 Electricity................................... 1.72 171.6 176.3 175.3 173.2 181.5 179.0 176.7 179.0 181 .9 190.0 197.9 191.2 188.3 Gas.............................................. .74 141 .9 Equipment Business equipment............................. 11.63 156.7 167.2 169.1 171.9 174.0 175.4 175.9 178.3 180.0 182.7 184.4 185.7 187.4 187.9 Industrial equipment........................ 6.85 153.1 162.0 162.4 164.2 166.1 167.4 167,3 168.5 171 .0 174.9 176.3 177.0 178.4 178.0 Commercial equipment..................... 2.42 164.4 172.7 175.8 177.5 180.8 184.2 186.4 190.1 191 .0 189,8 194.1 194.8 195.5 197.4 Freight and passenger equipment. .. 1 .76 162.4 180.4 188.0 194.9 198.9 198,9 201,3 204.9 205.7 208.8 208.1 209.2 212.8 216.4 Farm equipment.......................... .61 148.8 165.8 163.9 161.2 158.0 163.0 157,6 164.7 168,2 167.5 169.1 178.9 182.8 Defense equipment 3.4! Materials Durable goods materials. 26.73 144.3 143.6 147.3 149.9 152.6 155.6 156.7 157.7 159,3 159. 1 160.1 159.8 159. 7 158. 7 Consumer durable........ 3.43 166.8 168.7 168.3 170.0 173.6 1 69. 1 169.0 166.0 165,2 162.8 173.6 174.0 176.2 173.9 Equipment..................... 7.84 151.9 160.0 163.2 165.8 170.0 171.9 173,6 177.1 179,1 183.7 187.9 189.1 189.7 190.9 Construction.................. 9.17 133.8 137.2 140.3 142.7 143.6 146.1 144,3 141.8 142.3 141 .0 140.2 139.8 138.5 138.3 Metal materials n.e.c.. . 6.29 137.8 123.2 130.6 138.8 143.2 147.1 145.1 144.8 148.0 146.9 145.3 142.7 144.7 140,6 Nondurable materials.......... 25.92 144.1 148.6 150.4 151.0 152,1 153.1 152,3 156.5 158,0 158.6 159.1 158.6 159.6 159.5 Business supplies............... 9.11 136.4 141,6 142.5 144.2 144,4 146.0 145.3 147.8 150.3 149.9 150.1 150,7 151.6 151.3 Containers................. 3.03 136.6 144.7 144. 1 143.5 143.5 (45.2 142,4 146.1 146.4 143,2 143.4 147,4 145.3 148.5 General business supplies 6.07 136.4 140.0 141.7 144.5 144.9 146.4 146.7 148.6 152.2 153.2 153.4 152.4 154.8 152.7 Nondurable materials n.e.c. 7.40 174.1 180.8 183.7 185.3 187.2 186.3 188.4 192.0 192.9 194.5 195,6 193,8 196.1 197. 1 Business fuel and power........ 9.41 127.9 130.2 131.9 130.7 131.8 133.9 130.8 136.9 138.0 138.7 138.9 138.6 138.6 137.9 Mineral fuels...................... 6.07 115.5 118.0 1 19.6 1 17.4 118. 1 120.5 114.9 123.8 124.9 124.6 124.9 123.7 124.6 123.1 Nonresidential utilities.. . . 2.86 159.4 162,2 164.4 165.0 167.1 168.6 170.6 171,2 172,2 174.6 175.9 176.7 174.9 Electricity........................ 2.32 161.1 163.4 166,0 166.4 168.7 170.3 172.2 172.8 173.8 176.7 178,2 179.1 176.7 General industrial. . . . 1 .03 157.6 162.0 163.0 163.7 163.9 165,6 168.2 170.0 170.1 174.6 176.3 177.0 177.6 Commercial and other, 1.21 170.0 170.7 174,7 175.1 179.4 181.0 182.6 182.0 184.1 186,2 187.5 188.5 183.6 Gas.........................5..4.....1..5.2.0 Supplementary groups of consumer goods Automotive and home goods, 7.80 159.9 163.3 167.1 167.3 166.6 166.6 168.4 166.1 165.8 162.5 159.6 159.7 169.4 166.6 Apparel and staples............... 24.51 134.1 137.4 136.9 136.9 139.2 139.7 139.4 139,8 141.6 141.4 143.0 142.3 142.3 .......... For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INDUSTRIAL PRODUCTION: S.A. 137 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1965 1966 Grouping pro­ 1965 por­ aver­ tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct. r Nov. Total index..................................... 100.00 143 4 146.7 149.0 150 6 1 52 4 153 7 153.9 155 3 156.5 157.2 158,0 157.7 158,8 158,6 Manufacturing, total.......................... 86.45 145.0 148.6 is 1 0 152.9 154.7 155.9 156.6 157.6 158.9 159.4 160.1 160.0 161.4 161.0 Durable.......................................... 48.07 148.4 151 8 155 2 158 1 160 7 161 9 162,9 164.2 165.4 166.1 167.1 167.3 169.1 167,6 Nondurable.................................... 38 38 140.8 144.5 145*7 146^4 147J 148^5 148.7 149.4 150.7 151.0 151.3 150.9 151.7 152.8 Mining................................................ 8.23 1 1 4 8 116.4 118 3 117 3 117 7 120.0 115 6 120.7 122,0 122.0 122.1 121.0 121 4 120, 8 Utilities............................................... 5.32 160 9 164.1 164^9 164.7 168^7 168,8 169.1 170.2 171.7 175.7 179.0 177.0 175.2 176.5 Durable manufactures Primary and fabricated metals.......... 12.32 142.1 135.0 139.5 143.2 148.5 150.5 150.7 153.7 154.0 154.5 154. 2 153.6 153.2 150.4 Primary metals................................... 6.95 1 37 6 120.6 126.5 131.9 138,3 141.8 142.4 146.5 148.0 148.6 148.7 146.4 144.6 1 39.4 Iron and steel.............................. 5.45 133 6 110 5 118.5 1 22 9 129.1 136.7 138 8 141 I 142.1 143.3 1 42.2 139 0 137.2 133,3 Nonferrous metals and products.. 1.50 152*2 158^8 161.3 164.3 172.5 174.5 166^0 165.0 166.2 162.4 162,1 164.7 167.0 163. 1 Fabricated metal products................ 5 37 147.8 153.6 156.3 157.7 161.6 161.7 161.4 162.9 161.8 162. 1 161 4 163.0 164 2 164 5 Structural metal parts............. 1’86 145 4 152.6 154.0 154.2 1 58 9 158 9 159.1 158.4 158.8 157 7 158^8 158.6 159 0 159 7 Machinery and related products........ 27.98 154.3 162.2 164.9 168.3 170.1 170.8 172.4 173.7 175.5 177.4 179.0 179.8 183.5 182.2 Machinery.......................................... 14.80 160.5 168.3 171.0 174.5 176.4 176,1 178.6 180.6 182.8 186 6 189.6 188 8 191.1 189 8 Nonelectrical machinery............... 8.43 160.4 167 8 169.2 171.9 174.4 174,0 174,5 177.7 180.3 184.7 186.7 188.6 190,0 189 5 Electrical machinery..................... 6 37 160,6 169^0 173.5 177.9 179 2 178.9 184, 1 184.4 186.0 189.1 193.4 189.2 192.6 190,3 Transportation equipment......... 10.19 149.2 157.2 160.4 163.0 164.1 166.1 165.9 165.8 167.1 166.0 166.0 168.3 174.8 172.6 Motor vehicles and parts.............. 4.68 175 2 178.0 178,7 176.7 175.5 176.9 176, 1 169.9 169.4 161 2 158 1 164 6 176.0 169.9 Aircraft and other equipment. . .. 5.26 125 J 138.0 143.4 150.1 153.1 155.8 156.4 161.9 164.7 169^6 172.5 171 . 1 173.7 174,9 Instruments and related products. .. 1 .71 151.4 159.0 162.2 166.8 169.4 171.9 174.6 176.4 176.5 177.0 177.4 179.5 181.8 181.3 Ordnance and accessories................. 1.28 Clay, glass, and lumber. .................... 4.72 127.6 130.3 135.0 136.2 136.4 138.0 137.8 133.3 134.4 til 7 129.8 129.8 128.1 126.7 Clay' glass, and stone products........ 2.99 133.5 136.8 140.6 142.4 142.2 143.0 141 .9 139.5 141.0 138^5 140.5 141 .2 137.8 136.8 Lumber and products....................... 1.73 117.4 119.1 125.4 125.6 126.5 129.3 130.7 122.7 122.9 119.9 111.3 110.0 111.3 109.4 Furniture and miscellaneous............... 3.05 151.8 157.8 160.9 158.4 161.6 162.9 163.5 166.7 167.0 163.5 167.1 165.9 165.3 166.2 Furniture and fixtures...................... 1 54 157.4 162.6 166.2 165.4 167.7 168,8 169.6 173.8 174.6 169.7 175.3 173.2 173.2 174.1 Miscellaneous manufactures............. 151 146.0 153,0 155,5 151.2 155.3 156.8 157.2 159.5 159.3 157 2 158.7 158.4 157.2 158 1 Nondurable manufactures Textiles, apparel, and leather............ 7.60 135.8 138.7 140.2 138.6 139.8 141.1 142.6 142.0 143.4 141.6 140.1 140.2 141 0 141 ! Textile mill products....................... 2.90 134.9 139.1 140.1 140.4 140.7 142.0 143.5 143.7 144.0 143.4 142.1 141.7 142'3 142^5 Apparel products.............................. 3.59 145 1 147.2 148.5 145,6 148.4 149.4 150.3 149.9 152.0 149.7 147.7 148,4 148.3 Leather and products....................... 1 11 108.2 110.1 113.9 111.4 109.7 112,2 115.5 112 1 114.2 111 1 110.4 109.9 114.1 Paper and printing............................. 8.17 135.3 139.2 140.6 142.1 142.7 144.2 143.5 146.6 148.3 149.6 148.6 147.2 147.9 148.3 Paper and products......................... 3.43 142.3 147.4 149.3 150.6 148.5 150.2 150.2 153.0 154.1 156.2 153 1 151.2 153.3 153 1 Printing and publishing..................... 4.74 130.3 133.2 134.2 136.0 138.6 139.8 138.6 142.1 144.1 144.8 145.3 144.3 144. 1 144.8 Newspapers.................................... 1 S3 124.2 127.2 129.5 131.1 131.4 133.1 128.5 133.8 1 35 4 136.3 137.7 139.1 135.7 135.2 Chemicals, petroleum, and rubber.... 11.54 164.6 170.6 172.8 174.6 175.1 176.6 177.3 179.3 180. I 180.9 182.4 182.8 185.5 187.1 Chemicals and products........... 7.58 173.4 179.3 182.3 183,1 185.5 187.8 187.7 191.4 192.7 194.5 194.4 193.5 196.0 198.2 Industrial chemicals....................... 3.84 196.3 203.5 209.3 208.7 210.7 213.7 715 4 218.2 219.9 222.0 222.2 220.5 222.3 Petroleum products......................... 1.97 123.5 126. 1 127.8 130.5 125.5 125.6 127^7 127.4 127.7 126.9 128.5 130.6 131.2 130.1 Rubber and plastics products........... 1.99 171 8 181 6 181.3 185.8 184.7 184.5 186.9 184.3 184.1 812.7 190.3 193.6 199.2 Foods, beverages, and tobacco........... 11 07 123.4 125.1 124.8 125.7 126.8 127.4 126.9 125.5 126.8 127.2 128.5 127.9 126.7 128.6 Foods and beverages......................... 10.25 123.7 125,6 125.4 126.2 126.8 127.5 127.8 126.1 127,1 128.1 129.2 128,5 127.5 129.5 Food manufactures........................ 8.64 122.3 123.5 123.7 124.6 125.6 125.7 126.0 124.4 125.5 126,4 127.0 127,0 124.9 127.2 Beverages..................................... 1 61 130,6 137.1 134,7 134.8 133.4 137.0 137.5 135.4 135.9 137.2 141 1 136,4 141.4 Tobacco products.............................. ' 82 120.3 118.9 117,1 119.6 126.7 126.8 115.8 117.9 122.7 116.5 119^9 120,5 116.9 Mining Coal, oil, and gas.............................. 6.80 112.5 114.6 115.7 113.6 114.3 116.7 HI.6 118.8 II9.5 119.5 119.7 II8.8 II9.6 118.4 Coal.................................................... 1,16 113.3 116.6 118.9 114.4 111.2 117.7 85.3 116.9 120,7 120.8 120.7 114.7 121.5 114.0 Crude oil and natural gas................. 5.64 112.3 114,1 115.0 113.5 115.0 116,5 117.0 119.1 119.3 119,2 119.6 119.6 119.2 119.4 Oil and gas extraction................... 4.91 116,1 118.3 119.8 118.1 119.7 121 .2 121 .9 125.5 125.9 125.5 125.9 125.8 125.3 125.3 Crude oil.................................... 4.25 111.9 114.5 116.0 114.1 115.1 117.0 117,2 121.3 121.4 120.9 121 .2 121.3 121.1 121.5 Gas and gas liquids................... . 66 143.0 142.6 143.9 143 8 149.0 148 1 152.2 152.2 154.4 155.1 155.5 154 4 Oil and gas drilling........................ .73 87.1 86.0 82.8 8U9 83.0 84.4 83,6 76.2 74.6 76.4 77.0 '77'9 77.9 79.2 Metal, stone, and earth minerals..... 1.43 125.5 125.1 130.7 134.6 133.6 136.0 134.6 130.1 133.7 133.8 133.1 I3I.4 129.9 132.2 Metal mining..................................... .61 124.2 114.2 120.6 133.4 130.8 134.5 139.7 133.6 134.2 134,0 132,1 128.6 129.4 130.9 Stone and earth minerals.................. .82 126.5 133.2 138.2 135.5 135,6 137.1 130.9 127.5 133.3 133,7 133,8 133.5 130.3 133.1 Utilities Electric................................................ 4.04 165.6 168.9 169.9 169.3 174.2 174.0 174.1 175.5 177.2 182.4 186.5 184.2 181.6 Gas...................................................... 1.28 146.2 148.9 149.3 1 50 5 151.4 152.3 153 3 153.7 154 1 Note.—Published groupings include some series and subtotals not Industrial Production 1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

138 INDUSTRIAL PRODUCTION; N.S.A. JANUARY 1967 MARKET GROUPINGS (1957-59 = 100) 1957-59 1965 1965 1966 Grouping por­ aver­ tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index 100.00 143.4 148.2 146.7 148.5 152.3 154.6 154,8 156.0 159.3 150.9 156.8 161.3 163.7 160. Final products, total........................... 47.35 142.5 148.7 146.6 148.5 151.7 153.4 152.6 152.9 157.8 150.0 154.7 161.2 164.7 160.2 Consumer goods............................ 32.31 140.3 145.3 140.1 142.0 145.7 146.7 145,5 144.8 150,0 139.8 146.0 153.6 157.9 151 . Equipment, including defense.. . . 15.04 147.0 156. 1 160.3 162.3 164.6 167.8 167.9 170.3 174.6 172.0 173.5 177.8 179,5 179.6 Materials............................................ 52.65 144.2 147.6 146.8 148.5 152,7 155.7 156.7 158.7 160.7 151.8 158.7 161.3 162.8 160.2 Consumer goods Automotive products................. 3.21 167.2 184.6 172.4 178.0 177.7 180.9 178.6 170.9 174.2 127.5 86.2 153.6 185.4 178. Autos....................................... 1.82 182,6 211.7 191 .5 198,3 195.6 202.2 196.8 184.3 190.4 112.1 32.6 150,1 202.7 193.4 Auto parts and allied products 1.39 146.8 148.9 147.3 151 .2 154.1 153.0 154.8 153.3 152.8 147.7 156.9 158.3 162.5 157,8 Home goods and apparel........... 10.00 143.8 149.8 144.0 144.0 154.5 156.0 155.3 153.3 156.4 138.9 152.8 156.2 165.4 155, Home goods............................... 4.59 154.8 165,4 166.0 160.6 166.8 167.0 169.2 169.2 170,5 152,8 164.1 174.4 184.7 176.9 Appliances, TV, and radios., 1.81 152.3 162.0 160.9 160.1 168.2 166.4 174.2 169.4 171.7 140.8 149.3 170.9 191.6 174.6 Appliances.................1 ....3.3. 153.3 155,3 157.6 159.6 170.7 165.2 179.9 174.5 177.2 150.5 145.8 168. 1 190. 1 162, TV and home radios......... .47 149.8 181 .0 170.4 161,5 161.1 169.9 158.3 154.7 156.3 113.4 159.1 178.9 195.9 208. Furniture and rugs................. 1.26 154.3 163.2 167,0 159.7 162.0 163.5 161.6 162.7 167.2 157.3 171 .0 170.5 (73.0 17( .7 Miscellaneous home goods... 1.52 158.2 171.4 171 .3 162.0 169. 1 170.6 169.6 174.4 171 .9 163.3 175.9 181.7 186. 1 183.8 Apparel, knit goods, and shoes. 5.41 134.5 136 5 125.3 129.9 144. 2 146.7 143.5 139 8 1 44 4 127.2 143.3 140.9 149 0 Consumer staples..................................... 19. JO 134.0 136.4 132. 7 134.9 135.8 136.1 134.8 136.0 142.5 142.3 152.4 152.1 149.3 144.4 Processed foods................................. 8,43 122,2 128.6 119.9 116.9 116.9 116.8 117, 1 117.7 123.9 125.4 138.2 144.5 139.9 132.4 Beverages and tobacco.................... 2.43 127.2 124.5 111,1 114 4 120,4 (30.7 131,6 139.0 150.2 136.4 145.0 134.4 137. 1 Drugs, soap, and toiletries............. 2.97 157.0 161.7 159.4 165.6 165.5 166.7 167.3 171.8 180.8 167.5 181.2 179,6 185.0 183.6 Newspapers, magazines, and books. 1.47 127.0 127.6 130.1 130.7 133.1 136.2 134.6 136.5 137.9 137.5 139.9 137.9 137,8 137.4 Consumer fuel and lighting.............. 3.67 149.4 144.6 156.0 165.7 165.4 158.6 150.2 146.4 150.7 166.3 171 .8 164.8 154. 1 Fuel oil and gasoline..................... 1.20 122.4 125,8 129.4 130.3 127.3 123.9 121.7 124.4 127. 1 131.1 132.9 131.9 130,6 130. Residential utilities......................... 2.46 162.6 Electricity..............................♦.. I .72 171.6 158.5 180.2 199.7 200.7 (88.3 171.9 162.0 169.2 199.5 209.8 196.2 174.0 Gas................................................... .74 141.9 Equipment Business equipment........................... 11.63 156.7 164.9 169. 7 170.9 173.9 177.7 177.6 179.3 184.3 180.3 181.2 186.1 187.6 186. Industrial equipment........................ 6.85 153.1 159.7 163.4 162,9 165.3 167.6 167,3 168.7 174.6 173.2 175.8 178.6 177.3 175.5 Commercial equipment.. .................. 2.42 164.4 174.8 179.7 177.7 179.5 182.5 182.9 187.8 191.6 187.1 194. 1 197.7 198.8 201 . Freight and passenger equipment... 1.76 162.4 176.8 184.2 194.9 198.9 207.9 209.4 211.0 213.9 208.8 199.8 206,1 218.1 212. Farm equipment................................ . 61 148.8 149.2 159 8 164.1 176.3 185.1 179.9 173.6 179,3 149.8 136.4 (67.3 171,4 Defense equipment.... 3.41 Materials Durable goods materials- 26.73 144.3 145.4 145.9 147.7 152.3 155.9 158.3 160.0 162.4 152.1 158.4 162.7 163.4 159.7 Consumer durable........ 3.43 166.8 173.2 176.7 176.0 176.2 174.2 174.1 171 .0 166.9 141.6 158,0 174.0 178.8 179. Equipment..................... 7.84 151.9 160.2 165,6 167,3 171.5 173.8 175.5 178.3 180.9 178.0 182,3 187.2 189.1 191 . Construction.................. 9.17 133.8 136.9 131.9 128.9 132.1 137.3 142,9 145.3 151 .5 146.6 150.0 148.2 146,1 138.0 Metal materials n.e.c.. . 6.29 137.8 124.2 124.9 135.2 144.5 150.6 150.9 152.8 152.7 133.7 141,1 (47.0 148.2 141 .7 Nondurable materials.......... 25.92 144.1 149.9 147.8 149,3 153.3 155.6 155.0 157.4 159.1 151.4 159.0 159.9 162.3 160.8 Business supplies................ 9.11 136.4 143.5 137,5 139. 1 143.9 148.7 149.4 150.3 151,8 141.4 149.8 153,9 157,7 153.4 Containers......................... 3.03 136.6 140.6 127,8 136.3 141.8 145.9 147.5 147.6 150.9 142.5 152.0 152.4 152.7 144. General business supplies 6.07 136.4 144.9 142.4 140.5 144,9 150. 1 150.4 151.6 152.2 140.9 148.8 154.7 160.2 158.0 Nondurable materials n.e.c. 7.40 174.1 182.6 180.0 184,4 190.9 19! .0 194.1 194.9 195.8 183.4 192.7 192,8 197. 1 199. Business fuel and power........ 9.41 127.9 130.4 132.4 (31 .6 132.7 134.4 129.7 134.8 137.2 135.8 141.4 139.9 139,4 137.8 Mineral fuels. ................. 6.07 115,5 1 19.5 121.4 119.5 121.7 123,2 116,3 122.6 122.7 116.6 123.4 122.3 125.5 124.6 Nonresidential utilities. . . . 2.86 159.4 Electricity........................ 2.32 161.1 160.4 162.5 163.7 162.1 164.8 164.1 167.8 176.8 187.0 191.9 188.3 177,8 General industrial.,.. 1.03 157.6 (62.0 161.4 162.9 159.6 164.8 166.0 170.0 173.5 173.7 179.8 179.7 178.0 Commercial and other. 1.21 170.0 164,9 169.5 170.7 170.4 171.2 168.9 172.4 186.9 206.7 210.9 204.0 185.4 Gas................................... .54 152.0 Supplementary groups of consumer goods Automotive and home goods. 7.80 159.9 173.3 168.7 167.8 171.3 172.7 173.1 169.9 172.0 142.4 132,0 165,8 185.0 177. Apparel and staples................ 24.51 134.1 136.4 131.1 133.8 137.6 138.5 136.7 136.9 142.9 139,0 150.4 149.6 149.3 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INDUSTRIAL PRODUCTION: N.S.A. 139 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1965 1966 pro­ 1965 Grouping por­ aver­ tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.' Nov. Total index.................................. 100.00 143.4 148.2 146.7 148 5 152 3 154.6 154.8 156.0 159.3 150.9 156.8 161,3 163,7 160 3 Manufacturing, total........................... 86.45 145.0 150 5 148.3 150.1 154.4 157.1 157.9 158.9 162.2 152.1 158.0 163.6 167. / 163 5 Durable......................................... 48.07 148.4 154.5 155,4 156 5 160,6 163.9 164.9 166.1 169.0 158,2 160.4 169.5 173.2 170 7 Nondurable..................................... 38.38 140.8 145 5 139.5 142.1 146.6 148.6 149,2 149.8 153,8 144.4 155.0 156.3 159 4 154 5 Mining............................................... 8.23 114.8 117.3 117.5 115.6 117.0 118.7 115.5 121.3 122.7 118.2 123.6 122.8 124.1 1213 Utilities.......................................... 5.32 160.9 Durable manufactures Primary and fabricated metals. ..... 12.32 142.1 136.8 137.0 142 3 149.1 153. 7 154.2 155.5 156.3 143.8 151.2 156.1 156 1 15? ? Primary metals................................... 6.95 137,6 121 8 122 7 133 2 143 4 150.6 150.5 150,3 149.5 131.5 139.5 144.8 146 0 140 R Iron and steel............................... 5.45 133.6 111.6 115 5 125 4 134.7 143.5 144. 3 143.9 142,1 127.5 133.7 1 39.0 139 3 1 34 6 Nonferrous metals and products.. 1.50 152.2 158.8 149.0 161.5 175.1 176.4 172.3 173.7 176,5 146.2 160.5 165.9 170:2 163 J Fabricated metal products................ 5.37 147.8 156 1 155.5 153 9 156 3 157.8 159.0 162.1 165.0 159.7 166.2 170 8 1 69 1 1 67 1 Structural metal parts.................... 2.86 145 4 154 9 155 5 1511 152 5 152.7 154 3 157 6 162.0 157 7 162 8 164 9 163 8 1 62 1 Machinery and related products..... 27.98 154.3 165.6 168.1 169.5 172.2 174.3 175,0 175.9 179.1 168, i 166.4 180.2 186. 7 185.8 Machinery.......................................... 14 80 160 5 169 2 173 7 173 4 177 8 179.2 180 8 182.2 186.5 178 I 183 2 190 0 193 0 190 8 Nonelectrical machinery......... 8.43 160 4 165 J 171 2 1719 176 1 178.9 179 7 1 82.1 184.6 180.1 179 8 1 86 1 1 86 6 1 R6 S Electrical machinery...................... 6.37 160.6 174 6 177.1 175 4 180 I 179.6 182 4 182 5 189.0 175.6 1 87 8 195 2 201 5 196 6 Transportation equipment. ............. 10.19 149,2 164 6 164,6 168 0 168 0 171 3 170 6 169.7 171 .4 153.5 140 5 167 4 180 3 180 2 Motor vehicles and parts.............. 4,68 175.2 191 8 184.9 186*6 184 1 187.2 185 0 178.5 180.9 138.5 106.3 163.7 1 87 1 1 83 7 Aircraft and other equipment.... 5.26 125.3 140. 1 146.3 151.6 153.4 156.6 157.2 161,3 162.4 165.5 169.4 170.4 174:6 177.5 Instruments and related products. ., 1.71 151.4 161.9 164.1 164.8 168.6 171 .0 170.2 174.6 178.3 175.2 178.8 181.5 183.8 184.6 Ordnance and accessories................. 1.28 Clay, glass, and lumber...................... 4. 72 127.6 130 I 123 6 119 8 125 1 13! 6 136 5 138.0 143.6 137.2 142 0 139 3 / 36 7 l?7 5 Ciayj glassj and stone products........ 2.99 133.5 138^2 131 .7 125:2 127.3 136.6 141.3 144.5 151.3 147.2 152.0 149^ 145:4 139:5 Lumber and products....................... 1.73 117 4 116 1 109 7 110 5 121 4 122 8 128 1 126,7 130, 3 119 9 124 7 122 1 120 2 106 7 Furniture and miscellaneous......... 3.05 151 8 163 1 162 4 15^ 1 156 4 159.9 159 2 162.9 167 3 159.1 171 9 17? 0 174 8 174 1 Furniture and fixtures....................... 1 .54 157 4 165 5 169 2 162 1 163 5 166.8 165 0 168.6 174.3 167.2 180 2 178 4 179 8 179 0 Miscellaneous manufactures........ 1.51 146^0 160^6 155 5 142J 149^ 1 152.9 153 3 157,1 160.1 150 9 163 5 165'5 169 8 169.2 Nondurable manufactures Textiles, apparel, and leather............ 7.60 135 8 138 6 128 7 J 35 S 146 5 147 7 146 2 143 8 145. 7 127 2 143 0 141 1 148 7 !4l ? Textile mill products................. 2.90 134 9 139 8 130 3 139 7 143 5 1434 146 4 148.7 147.6 129: 1 145 7 141 7 146 6 143 2 Apparel products............................... 3.59 145 1 147 2 134 4 139 8 158 0 160.6 156 3 149 9 154 3 134 0 150 7 149 9 160 2 Leather and products........................ 1 . ii 108 2 107.9 106 3 110 8 1173 117 8 113*2 111,5 113.1 100.0 117 6 H 15 117 0 Paper and printing, ............................ 8.17 135 3 142 1 137 3 138 4 142 6 145 9 146 5 147 9 148 2 140 2 146 6 149 ? 154 9 15! 4 Paper and products.......................... 3 43 142 ’ 3 148 I 137 4 148 3 1522 153 2 154 7 1538 154 9 143.7 153 1 153 5 163 3 153 9 Printing and publishing,................... 4 74 130 3 137'8 1373 1312 1 35 7 140 7 140 5 143 5 143 3 137 7 1419 >46 6 148 8 1 49 7 Newspapers................................ 1.53 124:2 139^9 132'7 1 19^3 126* 1 135.1 136*8 142*6 136.1 118.6 126:6 138.4 145:6 148:? Chemicals, petroleum, and rubber.... 11.54 164.6 169.2 168.2 173.2 176.7 178.2 180.7 18!.0 186.0 174. 7 183.3 185.3 189.1 187.1 Chemicals and products................. 7 58 173 4 178 I 177 8 181 5 187 2 189 4 192 7 193 7 198 3 187 4 194 9 195 3 197 8 199 2 Industrial chemicals....................... 3.84 196 * 3 204 5 207 2 206 6 216 0 216’9 220 8 220 4 223 2 214 2 218 9 221 6 227 3 Petroleum products........................... 1.97 123.5 124.5 124.7 126:6 123.0 121.2 122,6 126.1 131.5 133.6 135L3 134.1 132:5 128.4 Rubber and plastics products........... 1.99 171.8 179.8 175.0 187.7 190.2 192.1 192.7 187.1 193.3 167.0 186 5 198 1 212 1 Foods, beverages, and tobacco.......... 11.07 123 4 128 1 118 5 117 0 118 4 120 4 120 5 12? 8 129 8 127 6 1 39 2 141 8 139 3 111 0 Foods and beverages........................ 10 25 1 23 7 128 6 120*4 116 9 117 7 120 1 120 9 1228 129*7 129 6 142 1 140 2 1 23 0 Food manufactures....................... 8.64 122 3 129 1 1206 1177 1178 117 5 117 4 118 2 124 I 125 1 137 6 143 8 130 9 1 37 9 Beverages........................................ 1.61 130 6 126 1 119 2 112 4 117 4 133 6 139 7 147 6 159 8 153 4 152*8 1 39 1 142 1 Tobacco products.............................. .82 1203 121 3 95 3 118 J I26J 124.9 115*6 122 J 131 3 103 1 129:7 125 2 127:3 Mining Coal, oil, and gas. .................... 6 80 112 5 115 8 117 2 115 6 117 4 118 6 ll7 3 117 3 117 4 11? 4 118 9 118 1 l?0 6 119 7 Coal.................................................. 1 16 1133 121 4 116 8 1121 112 5 118 6 85*9 118 1 120*0 93' 1 127 0 121 3 132 4 11» 7 Crude oil and natural gas................. 5.64 112*3 114*7 117^3 116.3 118^4 118^6 117^8 117^2 116:8 116^4 117.3 117.4 118,2 119.9 Oil and gas extraction................... 4 91 116 1 119 0 122 5 121 2 1 °3 9 124 3 123 5 123 7 123 3 122 2 1 27 5 122 5 123 8 126 0 Crude oil................................ 4 25 1119 114 5 117 2 I 1 5'8 1 18 6 119 3 1 19 1 120 1 120 2 1 18 5 118 9 Gas and gas liquids.................... 143^0 147^9 155:8 155'6 157.'5 156^ 1 151*4 146 J 143^7 145^8 146 0 145 8 Oil and gas drilling........................ .73 87.1 85.6 82.6 83.1 81.8 79.9 79.3 73.6 73.0 76,9 81.9 82^ 79.8 78.8 Metal, stone, and earth minerals....... 1.43 125.5 124.4 118.5 115.8 114.6 119.3 130,4 140.2 147.7 145.6 145.6 145.4 140.9 129.0 Metal mining..................................... 61 124 2 110 8 108 5 117 4 117 7 119 7 129 9 147 0 151 6 143 4 142 7 145 3 138 5 \2\ 1 Stone and earth minerals.................. . 82 126.5 134.5 125*8 114*6 112 4 119.'0 130*9 i 35 1 144,9 i47:i 147,8 145.5 142 7 1 34 4 Utilities Electric.......................... 4 04 165 6 159.6 170.0 179 1 178.6 174.8 167.4 165,3 173.5 192 3 199 5 191.7 176,2 Gas...................................................... U28 146*2 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

140 BUSINESS ACTIVITY; CONSTRUCTION JANUARY 1967 SELECTED BUSINESS INDEXES (1957-59= 100) Industrial production fac M tu a r n in u g ­ 2 Prices 4 Nonag- Period Major market groupings Ma g j r o o r u i p n i d n u g s s try s C t t i r o o u n n c ­ ­ r t e i u c m r u a ­ l l - F l c r o e a a i r d g - ­ ht T re o ta ta il l Whole­ Total Tot F a i l na g l s C o u p o o m r n d o e ­ s d r u E c m t q s e u n ip t ­ M ria a l t s e­ Mfg. M in i g n­ U iti t e i s l­ t c ra o c n t ­ s T m p o e l t o n a y t l — ­ t p m E lo e m n y ­ t ­ P ro a l y ls ­ ings sales3 s C um on e ­ r m c s o o a m d le i ­ ty 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..................... 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.3 99.9 106.7 95.3 106 103.1 100.7 1961..................... 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 108 102.9 95.9 105.4 91.2 107 104.2 100.3 1962..................... 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 120 105.9 99.1 113.8 92.4 115 105.4 100.6 1963..................... 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 132 108.0 99.7 117.9 93.3 120 106.7 100.3 1964..................... 132.3 131 .8 131.7 132.0 132.8 133.1 111.5 151.3 137 111.1 101.5 124.3 95.5 127 108.1 100.5 1965..................... 143.4 142.5 140.3 147.0 144.2 145.0 114.8 160.9 143 115,7 106.5 136.3 96.6 138 109. 9 102.5 1966 v.................. 156.3 155.4 147.4 172.7 157.1 158.7 120.2 173.4 121.6 112.8 150.5 96.5 148 105.9 1965—Nov.......... 146.7 148.0 143.7 157.3 146.1 148.6 116.4 164.1 141 117.8 108.8 141.2 97,9 144 110.6 103,5 Dec........... 149.0 148,9 144.2 159.0 148.8 151.0 118.3 164.9 153 118,5 109.4 143.0 102.4 145 111.0 104.1 1966 Jan........... 150.6 150.3 144.6 162.6 150.9 152.9 117.3 164.7 1 52 118 9 190 8 145.1 99.3 146 111.0 104.6 Feb........... 152.4 152.1 146.1 164.8 152.6 154.7 117.7 168.7 157 119.6 110.9 147.5 97.2 148 111.6 105.4 Mar.......... 153.7 152.5 146.2 166.2 154.4 155.9 120.0 168.8 158 120, 4 111.5 148.1 100,2 149 112.0 105.4 Apr.......... 153,9 152.9 146.4 166.9 154.5 156.6 115.6 169.1 161 120,6 11 9 148.9 97.0 146 112.5 105.5 May 155.3 153.7 146.2 169.8 157.1 157.6 120.7 170.2 156 120.9 112.4 149.0 100.0 143 112.6 105.6 June 156,5 154.9 147.1 171.4 158.0 158.9 122.0 171.7 147 121.8 113.4 150,1 95.1 149 112.9 105,7 July.......... 157.2 155.3 146.5 174.4 158.8 159.4 122.0 175.7 147 122,0 112.7 148,9 93,6 148 113.3 106.4 158.0 156.4 147.1 176.4 159.6 160.1 122.1 179.0 139 122.2 113.8 151.4 94,0 150 113.8 106.8 Sept...... r157.7 '156.3 '146.5 177.4 159.2 '160.0 '121.0 '177.0 146 122.2 113.3 152.7 95.0 150 114.1 106.8 Oct........... r158.8 r158.4 r148.9 r179.0 '159.6 rl 61.4 r 121.4 r 175.2 139 122.7 '113.9 153.8 93.9 '149 114. 5 106.2 Nov.......... '158.6 r158.4 r148.4 r180.1 r158.8 ’’161.0 '120.8 r176.5 130 '123.4 '114.7 154.5 97.1 '150 114.6 105.9 Dec. v. 158.7 159.0 148.7 181.2 158.4 161.0 122.8 177.0 123.9 114.9 155.3 99.0 148 105.9 1 Employees only; excludes personnel in the armed forces. value of total construction contracts, including residential, nonresidential 2 Production workers only. and heavy engineering; does not include data for Alaska and Hawaii, 3 F.R. index based on Census Bureau figures. Employment and payrolls: Based on Bureau of Labor Statistics data; 4 Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Note.—Data are seasonally adjusted unless otherwise noted. Freight carloadings: Based on data from Association of American Construction contracts: F. W. Dodge Co. monthly index of dollar Railroads. CONSTRUCTION CONTRACTS (In millions of dollars) 1965 1966 Type of ownership and 1964 1965 type of construction Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Total construction........................... 47,330 49,272 3,745 3,698 3,374 3,270 4,737 5,098 5,132 4,854 4,774 4,302 4,083 4,106 3,461 By type of ownership: Public........................................... 15,371 16,302 1,163 1,304 1,125 1,066 1,463 1,574 1,902 1,937 2,020 1,568 1,379 1,607 Private.......................................... 3^959 32,970 2,582 2; 395 2,249 2,204 3,274 3^524 3,230 2^916 2; 754 2,733 2^704 2’499 By type of construction: Residential building..................... 20,565 21,247 I ,696 1,446 1,290 1,299 2,004 2,081 1,970 1,828 1,461 1,494 1,261 1,225 1,076 Nonresidenttai building......... 15'522 17,’219 1,328 1^433 1,177 1,259 1'726 Cm 1 ^826 1,885 1 >3 1 '729 1 676 1 J96 1,424 Nonbuilding................................. 1^244 10,805 721 ’819 906 712 1,007 1,134 1,335 1 J 40 1,499 1’079 1; 146 1,086 '96! Note.—Dollar value of total contracts as reported by the F. W. Dodge data exceed annual totals because adjustments—negative—are made to Co. does not include data for Alaska or Hawaii. Totals of monthly accumulated monthly data after original figures have been published. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 CONSTRUCTION 141 VALUE OF NEV/ CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Period Total Total N f r a e o r s m i n ­ ­ Indu B s u ­ sine C ss om­ Public O n d re t o e h s n n i e - - - r Total M ta i r l y i­ H w ig ay h­ d C v e o v a & n t e i l s o o e n p r ­ ­ Other 1 dential Total trial mercial utility tial ment 1956.............................. 47,601 34,869 20,178 11,076 3,084 3,631 4,361 3,615 12,732 1,360 4,415 826 6,131 1957.............................. 49,139 35,080 19,006 12,029 3,557 3,564 4,908 4,045 14,059 1,287 4,934 971 6,867 1958............................. 50,153 34,696 19,789 10,659 2,382 3,589 4,688 4,248 15,457 1,402 5,545 1 ,019 7,491 1959 2........................... 55,305 39,235 24,251 10,557 2,106 3,930 4,521 4,427 16,070 1,465 5,761 1,121 7,723 I960.............................. 53,941 38,078 21,706 11,652 2,851 4,180 4,621 4,720 15,863 1,366 5,437 1,175 7,885 1961............................. 55,447 38,299 21,680 11,789 2,780 4,674 4,335 4,830 17,148 1,371 5,854 1 ,384 8,539 L962 3.......................... 59,667 41,798 24,292 12,316 2,842 5,144 4,330 5,190 17,869 1 ,266 6,365 1 ,524 8,714 1963 4.......................... 62,968 43,642 25.843 12,497 2,906 4,995 4,596 5,302 19,326 1,227 7,091 1,690 9,318 1964 ............................. 66,221 45,914 26,507 13,828 3,572 5,406 4,850 5,579 20,307 968 7,144 1,729 10,466 1965............................. 71,930 49,999 26,689 16,968 5,086 6,704 5,178 6,342 21,931 883 7,547 2,017 11,484 1965—Nov................... 74,039 51,209 26,243 18,426 5,291 7,706 5,429 6,540 22,830 967 7,398 2,327 12,138 Dec.................... 76,443 53,445 26,684 19,679 6,250 8,017 5,412 7,082 22,998 760 7,687 2,142 12,409 1966—Jan.................... 77,622 53,285 27,460 19,053 5,987 7,846 5,220 6,772 24,337 733 8,107 2,126 13,371 Feb.................... 78,920 54,290 27,463 19,435 6,629 7,294 5,512 7,392 24,630 823 8,203 2,004 13,600 Mar................... 79,499 55,066 27,279 20,154 7,073 7,672 5,409 7,633 24,433 1 ,009 8,550 2,323 12,551 Apr................... 78,578 54,347 27,437 19,730 7,175 7,097 5,458 7,180 24,231 887 8,791 2,226 12,327 May.................. 76,135 52,284 27,023 18,283 6,856 6,126 5,301 6,978 23,851 650 8,783 2,142 12,276 June.................. 75,894 52,108 26,156 19,508 7,548 6,343 5,617 6,444 23,786 744 8,710 2,105 12,227 July................... 73,827 50,061 25,115 18,933 7,163 6,280 5,490 6,013 23,766 800 8,709 2,127 12,130 Aug................... 73,051 49,210 23,469 19,270 7,164 6,482 5,624 6,471 23,841 746 8,708 2,231 12,156 Sept................... 73,627 49,725 23,100 19,678 6,913 7,054 5,711 6,947 23,902 848 8,706 2,169 12,179 Oct."................. 71,072 47,433 22,416 18,469 6,223 6,536 5,710 6,548 23,639 8,705 2,084 Nov."................ 69,919 46,172 2!,064 5,736 23,747 ......8...,.7..0.4 1 Sewer and water, formerly shown separately, now included in “Other.” Note.—Monthly data are at seasonally adjusted annual rates. Be­ 2 Beginning with 1959, includes data for Alaska and Hawaii. ginning with 1959, figures are Census Bureau estimates. Data before 3 Beginning July 1962, reflects inclusion of new series affecting most 1959 are joint estimates of the Depts, of Commerce and Labor. private nonresidential groups. 4 Beginning 1963, reflects inclusion of new series under “Public” (for State and local govt, activity only). NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership S.A. Government- (private only) underwritten Private Period Total Non­ Metro­ Total N fa o rm n­ politan p m o e li t t r a o n ­ Total fam 1- i ly fam 2- i ly M fam ul i t l i y ­ Public Total FHA VA 1955............................. 1,646 1,627 19 670 277 393 1956............................. 1,349 1 ’325 24 465 195 271 1957............................. 1,224 1 J75 49 322 193 128 1958............................. 1'382 1,314 68 439 337 102 1959............................. 1,554 1,077 477 1’517 1,234 56 227 37 458 349 109 1960............................. 1,296 889 407 1,252 995 44 213 44 336 261 75 1961............................. 1,365 948 417 1'313 974 44 295 52 328 244 83 1962.............................. I '492 1,054 439 1'463 991 49 422 30 339 261 78 1963............................. 1,641 l'l5l 490 1 ,609 1,021 53 535 32 292 221 71 1964............................. 1,591 1'119 472 1'557 '972 54 532 33 264 205 59 1965 ............................. 1,543 1,068 475 1 ,505 962 50 493 38 249 197 53 [ 965—Nov................... 1,547 1,531 118 79 39 116 71 4 41 2 20 16 4 Dec................... 1 ',769 1 735 103 76 27 102 60 3 39 I 18 15 3 1966—Jan.................... 1,611 1,585 87 62 26 85 48 3 34 3 16 13 3 Feb.................... 1'374 1,349 81 56 26 78 47 3 29 3 15 12 2 Mar........... 1,569 1,538 131 91 40 126 81 5 41 5 23 19 3 Apr.................... 1'502 1,481 149 107 42 147 95 5 47 2 22 18 3 May, ......... 1,318 1,287 139 92 48 135 88 4 43 4 18 14 3 June.................. 1,285 1,261 131 88 43 128 84 4 40 3 19 15 4 July................... 1,088 1 ,068 105 70 35 104 71 3 30 1 17 13 4 Aug................... 1,107 1,084 107 72 35 105 71 3 31 2 18 14 4 Sept.............. 1 '075 1 ,050 95 64 31 92 62 3 27 3 13 10 3 Oct.................... ’’841 "819 "82 53 29 "80 55 2 22 "3 13 9 3 Nov................... ?'l ,000 "981 "77 49 27 "74 53 3 19 "2 13 10 3 Note.—Beginning with 1959, Census Bureau series includes both farm by area or type of structure. Data from Federal Housing Admin, and and nonfarm series developed initially by the Bureau of Labor Statistics. Veterans Admin, represent units started, based on field office reports of Series before 1959 reflect Census Bureau revisions that are not available first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

142 EMPLOYMENT JANUARY 1967 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Total non- Not in the Total Employed1 Un m em en p t l oy­ Period i p n o s N t p it u . u S l t a . i A t o i . o n n al lab N o . r S . f A o . rce l f S a o b . r A c o e . r Total Total In c n u o lt n u a ra g l r i- In U pl n o e y m ed ­ (pe r S r a . t A c e e . 2 n t) industries agriculture 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 74333 70,357 65,596 4,761 3’876 5.2 1965........................... 136,241 57'884 78357 75335 72', 179 67,594 4'585 3,456 4.6 1966........................... 138,385 5 8,'221 80,164 77,041 74,065 69,859 4 306 2’976 3.9 1965—Dec.......... 137,226 58,749 79,408 76,567 73,441 68,955 4,486 3,126 4.1 1966—Jan................. 137,394 59,985 79,644 76,754 73,715 69,286 4,429 3,039 4.0 Feb................. 137,565 59,930 79,279 76,355 73,521 69,079 4,442 2,834 3.7 Mar............... 137’,741 59,707 79,315 76,341 73,435 69,072 4,363 2,906 3.8 Apr................. 137,908 58,994 79,674 76,666 73,799 69,317 4,482 2,867 3.7 May.............. 138'100 58349 79,313 76,268 73,231 69’155 4,076 3,037 4.0 June.............. 138^275 55,575 80,185 77,086 73,997 69,759 4’238 3,089 4.0 July................ 138,444 55,673 80,233 77,098 74,072 69,928 4,144 3,026 3.9 Aug................ 138;648 56,180 80,549 77,371 74,338 70,180 4,158 3,033 3.9 Sept................ 138;839 58;787 80,342 77,113 74,165 70;116 4,049 2,948 3.8 Oct................. 139,041 58,511 80,414 77,135 74,163 70,192 3,971 2,972 3.9 Nov........ 139,237 58,269 81,249 77,927 75,076 70,968 4,108 2,851 3.7 Dec................ 139,429 58,695 81,579 78,189 75,226 70,972 4,254 2,963 3.8 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 14 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate to the calendar week that contains the 12th day; annual data are averages of monthly figures. ' EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t n r r a u c c t ­ T ti l o i r c a n n u s & t p i l o i p t r i u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1961.......................................................... 54,042 16.326 672 2,816 3,903 11,337 2,731 7,664 8,594 1962.......................................................... 55396 16,853 650 2; 902 3,906 11,566 2,800 8; 028 8,890 1963.......................................................... 56,702 16,995 635 2,963 3,903 11 ;778 2; 877 8; 325 9,225 1964.......................................................... 58,332 17,274 634 3,050 3,951 12,160 2; 957 8,709 9,596 1965................................................. . . 60370 18,032 632 3,181 4,033 12,683 3,019 9,098 10,091 1966?........................................................ 63,863 19,084 628 3,281 4J36 13,219 3^85 9,’581 10,849 SEASONALLY ADJUSTED 1965—Dec............................................... 62,241 18,492 633 3,334 4,083 12,941 3,049 9,329 10,380 1966—Jan................................................ 62,469 18,566 635 3,318 4,091 13,009 3,052 9,363 10,435 Feb................................................ 62’811 18,722 634 3,323 4,105 13,045 3,051 9,410 10,521 Mar............................................... 63'247 18,840 637 3,419 4,109 13,085 3,064 9,463 10330 Apr............................................... 63^50 18 323 595 3,333 4J14 13J28 3,068 9 384 10305 May............................ • 63,517 19,002 628 3,238 4,132 13;164 3 ;O76 9,515 10,762 June............................................ 63'983 19,167 632 3,300 4,143 13 ,’217 3; 090 9,549 10,885 July,..................................... 64372 19J28 636 3,297 4J22 13,256 3;095 9,609 10,929 64'199 19;262 636 3,251 4', 105 13^64 3; 100 9,647 10,934 Sept 64'168 19;204 628 3 ,'228 4,'168 13^68 3J00 9 ,'649 10 323 Oct........................................... 64,466 19,312 625 3,202 4,165 13,340 3 ,'102 9,712 11,008 Nov p . ................................. 64'818 19,422 623 3,212 4,193 13,380 3,109 9,780 11,099 Dec.p........................................... 65',066 19^65 627 3,282 4,194 13;390 3,119 9314 11,175 NOT SEASONALLY ADJUSTED 1965—Dec............................................... 63,038 18,473 632 3,167 4,087 13,762 3,034 9,245 10,638 1966—-Jan................................................ 61,439 18,333 621 2,940 4,026 12,835 3,018 9,176 10,490 Feb................................................ 61,622 18,518 617 2,818 4,035 12,738 3; 024 9,250 10,622 Mar............................................. 62;243 18,651 620 2,981 4,056 12,826 3; 043 9,331 10,735 Apr............................................... 62;928 18,774 590 3,156 4,077 13,015 3;056 9,465 10,795 May............................................ 63;465 18,906 630 3,277 4,115 13,061 3; 070 9,572 10,834 June.............................................. 64^63 19,258 645 3,521 4; 180 13,239 3,112 9302 10,906 July.............................................. 64;274 19,123 645 3,623 4,171 13;225 3,148 9382 10,557 Aug.............................................. 64;484 19391 649 3,641 4,154 13,224 3; 146 9,772 10,507 Sept.............................................. 64,'867 19;533 637 3,525 4,218 13,253 3J09 9,707 10,885 Oct............................................... 65,190 19;538 631 3,449 4J98 13,385 3; 099 9,751 11,139 NovP......................................... 65; 387 19,532 627 3,318 4,206 13,586 3,097 9,741 11,280 Dec.p............................................ 65,899 19^52 626 3,118 4,198 14339 3,103 9,726 11,437 Note.—Bureau of Labor Statistics; data include all full- and part­ domestic servants, unpaid family workers, and members of the armed time employees who worked during, or received pay for, the pay period forces are excluded. that includes the 12th of the month. Proprietors, self-employed persons, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 EMPLOYMENT AND EARNINGS 143 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1965 1966 1965 1966 Dec. Oct. Nov.'' Dec.'' Dec. Oct. Nov.'' Dec.'' Total .......... 13,779 14,350 14,450 14,467 13,769 14,581 14,562 14,464 Durable gonds............................................................. 7,973 8,442 8,480 8,501 7,980 8,530 8,540 8,515 Ordnance and accessories...................................... 100 ' 128 '131 '131 101 129 133 133 Lumber and wood products.................................. 549 529 528 527 537 541 530 5(5 Furniture and fixtures........................................ 367 381 385 386 368 388 390 388 Stone clay, and glass products............................. 516 507 507 509 505 5 17 512 498 Primary metal industries..................................... 1 044 1,102 1,104 1,101 1 ,029 1,084 1 ,081 1 ,086 Fabricated metal products .................................. I 020 1 ,062 1 '073 1 '081 1,024 1 ,077 1 '082 1 ,085 Machinery except electrical................................... 1 256 1 ' 346 1 ,351 1 '354 1'253 1,334 1 '336 1 ,351 Electrical machinery................................ 1 216 1' 363 1,365 1 ,356 1 ,233 1 ’,385 1 ,387 1'375 Transportation equipment..................................... 1,290 1 '392 1 ,401 1 ,413 1321 1 ,414 1,430 I ,’447 Instruments and related products........................ 258 280 281 282 259 282 284 283 Miscellaneous manufacturing industries............... 357 352 354 361 350 379 375 354 Nondurable goods...................................................... 5,806 5,908 5,970 5,966 5,789 6,051 6,022 5,949 Food and kindred products................................. 1 ’,163 1 ,156 1.185 1 ,175 1,146 1 ‘244 1 ,208 1 ,157 Tobacco manufactures........................................... 73 ' 66 ' 74 ' 71 ' 79 ’ 82 79 77 Textile-mill products.............................................. 838 847 848 849 836 854 852 846 Apparel and other finished textiles.............. 1.229 1,246 1,249 1 ,252 1,222 1,263 1 ,260 1 ,246 Paper and allied products..................................... 509 '525 '531 528 511 529 534 530 Printing, publishing, and allied industries........... 633 659 662 667 638 664 672 Chemicals and allied products............................. 553 576 582 584 547 575 577 578 Products of petroleum and coal........................... 113 114 115 115 1 1 I 115 1 14 113 Rubber products. . ............................................... 384 409 413 417 386 415 419 420 Leather and leather products................................ 311 310 311 308 313 310 313 310 Note,—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month, 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 1965 1966 1965 1966 1965 1966 Dec. Oct. Nov." Dec." Dec. Oct. Nov." Dec." Dec. Oct. Nov." Dec." Total................................................................... 41.3 41.3 41.3 41.0 110.92 113.85 113.99 114.68 2.66 2.75 2.76 2.77 Durable goods................................................... 42.2 42.2 42.0 41.9 120.98 124.07 123.48 124.79 2.84 2.94 2.94 2.95 Ordnance and accessories.......................... 42.4 42.2 42.7 43.0 138.03 136.63 137.92 141.26 3.21 3.23 3.23 3.24 Lumber and wood products...................... 41.5 40.4 40. 5 40. 5 89.82 94.83 91.83 91.66 2.18 2.33 2.29 2.28 Furniture and fixtures................................ 41.7 41.2 41.1 40.6 92.23 93.86 92.74 93.18 2.16 2.24 2.24 2.24 Stone, clay, and glass products.................. 43.0 41.8 41.6 42.2 112.25 116.47 115.51 114.26 2.66 2.76 2.77 2.76 Primary metal industries............................ 41.3 42.7 42.5 42.0 132.48 139.02 138.69 138.93 3.20 3.31 3.31 3.30 Fabricated metal products......................... 42.3 42.4 42.3 42.5 119.7! 124.26 123.38 125.40 2.81 2.91 2.91 2.93 Machinery except electrical....................... 43.8 43.9 44.0 43.6 133.48 136.34 136.78 138. 16 3.02 3.12 3.13 3.14 Electrical machinery................................... 41.4 41. 1 40.9 40.8 110.04 109.86 109.74 111.37 2.62 2.66 2.67 2.69 Transportation equipment......................... 43.0 42.4 41.9 41.8 145.53 146.63 145.18 145.09 3.30 3.41 3.40 3.39 Instruments and related products......... 41.7 42.0 41.7 41.7 111.72 114.93 115.08 114.81 2.66 2.73 2.74 2.74 Miscellaneous manufacturing industries 40.2 40.0 40.0 40.2 87.48 90.09 90.05 91.94 2.16 2.23 2.24 2.27 Nondurable goods............................................. 40.2 40.2 40.2 40.0 96.96 99.94 100.10 100.50 2.40 2.48 2.49 2.50 Food and kindred products...................... 41.1 41.0 41.1 41.2 102.26 104.08 104.90 106.66 2.47 2.52 2.54 2.57 Tobacco manufactures.............................. 37.8 37.7 38.5 39.0 82.68 81.93 81.62 89.24 2.12 2.09 2.12 2.22 Textile-mill products.................................. 42.0 41.3 41.1 41.0 80.79 83.20 83.42 82.60 1.91 2.00 2.01 2.00 Apparel and other finished textiles........... 36.4 36.7 36.4 36.6 67.15 70.64 70.06 70.06 1.86 1.93 1.93 1.93 Paper and allied products........................ 43.5 43.1 43.5 42.9 117.82 121.37 121.09 120.53 2.69 2.79 2.79 2.79 Printing, publishing, and allied industries. 38.7 39.0 39.0 38.7 122.30 125.51 124.48 126.22 3.12 3.21 3.20 3.22 Chemicals and allied products.................. 42.0 42.2 42.2 41.8 123.35 127.56 127.87 126.96 2.93 3.03 3.03 3.03 Products of petroleum and coal............... 42.0 42.4 42.4 42.6 140.95 145.43 145.59 146.36 3.38 3.43 3.45 3.46 Rubber products....................................... 42.3 42. 1 42.1 41.5 113.42 113.52 113.25 112.98 2.65 2.69 2.69 2.69 Leather and leather products..................... 38.4 38.8 38.8 38.2 74.87 74.68 76.03 77.61 1.91 1.96 1.98 1.99 Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

144 PRICES JANUARY 1967 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em il s Food Total Rent o H w o n m e e r­ ­ F a o u n i d e l l e G a l n e a c d s ­ n F i a n i n u s g d h r s ­ ­ A u p p a p k n a e d r e e p l T p t r o i a o r n t n a s ­ ­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d ­ O g a o t n o h d d e s r ship coal tricity o t p io er n a­ care care re t c io re n a­ s i e c r e v s ­ 1929 59.7 55.6 85.4 1933. 45.1 35.3 60.8 1941 ....................... 51.3 44.2 61,4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58.2 1945 62,7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75.0 67.3 1957. 98.0 97.8 98.5 98.3 98.2 100.8 96.9 99.4 99.5 96.5 97.0 95.5 97.1 96.9 98.5 1958 100.7 101.9 100.2 100.1 100.4 99,0 100,3 99.9 99.8 99.7 100.3 100.1 100.4 100.8 99.8 1959 ....................... 101.5 100,3 101.3 101.6 101.4 100,2 102.8 100.7 100.6 103.8 102.8 104.4 102.4 102.4 101.8 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 1965........................ 109,9 108.8 108.5 108.9 Hl.4 105.6 107.8 103.1 (06.8 111. 1 115.6 122.3 109.9 115.2 111.4 1965--Nov............... 110.6 109,7 109.2 109.3 112,5 107.2 108,0 103.3 108.1 111.5 116.4 123.4 109.6 115.4 113.3 Dec................ HI.O 110.6 109.4 109.5 112,9 108.6 108.0 103.6 108.1 111.6 116.6 123.7 110.0 115.4 113.4 1966--Jan................ IH.O Il 1.4 109.2 109.7 113.1 108,9 107.9 103.6 107.3 111,2 116.9 124.2 110.4 115.7 113.4 Feb................ 111.6 113. 1 109,4 109.8 113.3 109.0 108.2 103.8 107.6 1 11.1 117.1 124.5 110,8 1 15.9 113.6 Mar............. 112.0 113.9 109.6 109.9 113.5 108.9 108.2 104,0 108.2 111.4 117.6 125.3 Hl .0 116.6 113,8 Apr................ 112.5 114.0 110.3 110.1 114.3 108,5 108.3 104,4 108.7 112.0 118.1 125,8 111.6 116.8 114.3 May.............. 112.6 113,5 110.7 110.2 115.0 108,0 108.2 104.6 109.3 112.0 118.4 126.3 112.0 116.8 114.7 June.............. 112.9 113.9 1 II. 1 110.2 115.8 107.0 108. 1 104.8 109.4 112.2 118,7 127,0 112.2 1 17.0 114,9 July............... 113.3 114,3 111.3 110.3 116.2 107.0 108.1 105.1 109.2 113.5 119.1 127.7 112,5 117.2 115.3 Aug............... 113.8 115.8 111.5 110.6 116.4 107.0 108,1 105.2 109,2 113.5 119.5 128,4 112.7 117.4 115.5 Sept............... 1 14.1 115.6 111.8 110.7 116.8 107.4 108. 1 105.7 110,7 113.3 119.9 129.4 113.0 I 17.5 115.7 Oct............ 114.5 115.6 112.2 111.0 117.4 108.3 108.0 106,1 111.5 114.3 120.4 130.4 113.3 118.0 115.9 Nov............... 1 14.6 114.8 112.6 111.2 117.8 108,9 108.1 106.5 112.0 114.5 120.8 131.3 113,4 118.3 116.0 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Other commodities Period m c t o A i o e m U d s i ­ ­ F p u r a c o r t m d s ­ f P e o s r o s o e d c d s ­ Total T t e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C i e c h a t e c ls m . , ­ R b et e u c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s . t , ­ c M e h r i y a n ­ ­ F t e u u t r c r e n . , i ­ N t m m al o i l e n n i ­ c ­ - b T e a t c o c c . ­ o, n c M e e o l i l u s a ­ ­ s erals 1957............................. 99.0 99.2 97.9 99.2 100.8 94.9 102.7 99,6 100.2 98.5 99.0 99.7 97.7 99,4 98.9 98.0 96.6 1958............................. 100.4 103.6 102.9 99,5 98.9 96.0 98.7 100.4 100.1 97.4 100,1 99.1 100.1 100,2 99.9 99.7 101.5 1959............................. 100.6 97.2 99.2 101.3 100.4 109,1 98.7 100,0 99,7 104.1 101.0 101.2 102.2 100.4 101.2 102.2 101.9 I960............................. 100,7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.4 100.1 101.4 102.5 99.3 1961............................. 100.3 96.0 100.7 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100,7 102.3 99.5 101.8 103.2 103.9 1962............................. 100.6 97.7 101.2 100.8 100.6 107,4 100.2 97.5 93.3 96.5 100.0 100,0 102.3 98.8 101.8 104,1 107.3 1963 ............................. 100.3 95.7 101.1 100.7 100.5 104.2 99.8 96.3 93.8 98.6 99.2 100,1 102.2 98.1 101.3 106.1 110.4 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 1965. _____________ 102.5 98.4 105.1 102.5 101.8 109,2 98.9 97.4 92,9 101.1 99.9 105.7 103.7 98.0 101.7 107.7 111.0 1965--Nov................... 103,5 100.3 107.6 103.2 101.9 113.6 100.3 97.5 93.5 101.6 100.8 106.7 104.1 98.0 101 .6 107.7 113.2 Dec................... 104.1 103.0 109,4 103.2 102,0 114.6 100.6 97.6 93,5 101.9 100.9 106.6 104.2 98.2 101.6 107.9 112.5 1966—-Jan.................... 104.6 104,5 110.3 103.5 101.9 116,0 100.5 97.6 93.7 102.8 101.2 107.0 104.4 98.3 102.0 108.1 114.3 Feb.................... 105.4 107.4 111.8 103.8 102,0 117,8 100.3 97.6 94.1 103.7 101.3 107.5 104.7 98.4 102.1 108.0 116.0 Mar................... 105.4 106.8 111.5 104.0 102.1 1 18.7 99.9 97.6 94.3 105,6 101.8 108.0 105.0 98.4 102.1 109,2 113.1 Apr................... 105.5 106,4 110.6 104.3 102.2 120.8 100.0 97.6 95.4 108.4 102.3 108.2 105,2 98.6 102.3 109,4 113.0 May............. , 105,6 104.5 110.5 104.7 102.2 122.9 100.4 97.7 95.4 109.6 102,7 108.4 105.8 98.9 102.4 109.4 115,1 June.................. 105.7 104.2 110,6 104.9 102,2 122.9 101.5 97.6 95,4 107.7 103.0 108.7 105.9 98.9 102.5 109,8 115.7 July................... 106.4 107.8 111.7 105.2 102.4 122.7 101.4 97.9 95.1 106.6 103,2 108.8 106.0 99.0 102.7 110,0 120.5 Aug................... 106.8 108.1 113.8 105.2 102.4 121.2 102.0 97.9 95.1 106.2 103.2 108.5 106.2 99.1 102.7 110,1 121.1 Sept................... 106.8 108.7 113.8 105.2 102.2 119.9 102.2 98.0 94.7 105,9 103,1 108.4 106,3 99.2 103.0 110,1 120.4 Oct.................. 106.2 104,4 112.4 H05.3 H02.2 HI8.7 102.6 97.9 94.6 104.8 103,1 108,6 H07.1 99.7 103.2 110.1 HIS.2 Nov................... 105.9 102.5 HO.9 105.4 102. 1 117.4 102.7 98.0 94.8 103.2 103,0 108.9 107.5 100. 1 103.2 110.1 118,5 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 PRICES 145 WHOLESALE PRICES: DETAIL (1957-59= 100) 1965 1966 1965 1966 Group Group Nov. Sept. Oct. Nov. Nov. Sept. Oct. Nov. Farm products: Pulp, paper, and allied products: G L Fr i r v e a s e i h s n t s o a . c n .. k d .. . a . d . n . r . d i . e . . d . p . . o . p . u . r . o . l . t . d r . y . u .. . c . . . . e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 8 0 7 4 4 . . , 4 2 0 1 1 1 0 0 1 4 6 0 . . . 6 7 4 1 9 9 0 7 8 3 . . . 9 9 8 1 9 0 8 3 . . 0 4 W Wo as o t d e p p u a l p p e .. r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... 1 9 0 8 7 .0 1 1 9 0 8 2 .9 0 9 9 8 8 . . 0 8 9 9 8 2 . . 0 7 F E P H l l g a u a g y n id s t a . . a m n .. n . d . i d . l . s k . e . a . . e . . n . . d . . i . . m s . . . . . . . . a . . . . . l . . . . . . . . . f . . . . i . . . b . . . . . e . . . r . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 8 0 1 0 9 7 4 7 . . . 3 0 2 8 1 1 1 7 2 2 2 1 8 6 5 . . . . 7 3 0 4 ' r 1 U l 2 2 4 5 1 , , , 8 7 5 1 1 1 7 2 2 2 1 1 2 4 . . . . 0 9 8 4 C P P B a o a u p p n il e v e d r r e i b n . r . o g t .. e a . d p . r . d . a . p . p . . a . . e . . p . . r . . . e . . a . . r . . n . . . a . d . . n . . . . . d . b . . . . o . . p . . . a . . a . r . . p . d . . . . e . . . . . . r . . . . b . . . . . . o . . . . . . . a . . . . . . r . . . . d . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 '9 0 0 3 0 4 . . . 1 1 8 1 1 9 9 0 0 7 2 3 8 . . . . 2 7 0 4 1 1 9 9 0 0 7 3 3 8 . . , . 2 0 0 4 1 1 9 9 0 0 3 7 3 8 . . . . 1 2 4 1 Other farm products......................... 99.9 102.3 100,8 98.7 Metals and metal products: Processed foods: Iron and steel....................................... 101.3 102.5 102 5 102.5 Cereal and bakery products................ 110.6 118 9 118.7 118.7 Nonferrous metals............................... 118 7 119 9 120.3 121 0 Meat poultry, and fish..................... 105.5 112.2 108 1 104.4 Metal containers................................. 108.3 110 1 110 1 1 10 2 Dairy products and ice cream....... 1 10.4 124.2 124.5 122.6 Hardware.......................................... 107 0 1 10.3 110.9 1113 Canned and frozen fruits and veg­ Plumbing equipment.................... 103.6 110.6 1 10.6 110 5 etables ...................... 105 4 103.7 '105 7 105.8 Heating equipment.............................. 91.6 92.9 93,3 93 4 Sugar and confectionery..................... 109 2 1114 1116 112.5 Fabricated structural metal products. 102.0 104 4 '104 6 104,8 Packaged beverage materials.............. 93 4 90 5 90 5 90 5 Fabricated nonstructural metal prod­ Animal fats and oils........................... 1 15.8 1 15 9 r108 9 106.2 ucts ............................................... 109.8 112.4 112.7 113.2 Crude vegetable oils............................. 100 9 112 4 100. 1 99.2 Refined vegetable oils......................... 105.0 107.6 97 0 102.2 Machinery and motive products: Vegetable oil end products................. 101.2 1 10.4 ’108 2 107 0 Miscellaneous processed foods........... 114,2 114.2 115J 114.6 Agricultural machinery and equip.... 116.8 118.2 '118.5 119.7 Textile products and apparel: C M o e n ta st l r w u o c r t k io in n g m m a a c c h h in in e e ry ry a a n n d d e e q q u u ip ip .. . . . 1 1 1 1 6 8 . . 4 6 1 1 1 2 9 5 . . 4 0 '1 1 2 1 5 9 . .8 6 1 1 2 2 0 5. . 8 4 General purpose machinery and C S W M A i o p l a o k t p n o t o a - p l m r n r p e o a r l p d . d o . r u . e d o . c . u . d f t .. i c s u . b . . t c . . e s . . t . r . . s . . . . . . . t . . . . e . . . . . . . . x . . . . . . . . t . . . . i . . . . l . . . . e . . . . . . . . . . . . p . . . . . . . . . r . . . . . . o . . . . . . . . . d . . . . . . . . . u . . . . . . . . c . . . . . . . . t . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 9 4 0 0 2 2 4 1 ^ , . 2 0 2 5 1 1 1 1 8 0 0 0 5 8 3 5 6 8 . . . 1 1 6 8 1 ' ' 1 1 1 1 *’ 0 0 8 0 6 5 3 8 5 L . . 3 6 I 3 1 1 1 1 1 8 0 6 0 0 5 7 1 5 3 . . . . 1 1 8 0 5 S M E p le i e e e s c q c q c t i u u r e a i i l i l c p l p a a m m n l i e e m e n o n n d u a t t u c s . ( h s . J m . t a i . r n . n y . a e . . . c r .. h y t . y i m . n a o . n e a .. i c r d . — . y h . . e . i . l n . q . u . e . . u u . r . . i y ) . p . . . . . . . . . . . . . . . . . . . . a . . . . . n . . . . . . d . .. . . 1 1 0 0 5 8 . . 3 9 '1 1 1 1 9 1 0 9 3 1 6 . . . 2 8 2 1 ' ' ' 1 1 1 '9 1 1 0 9 1 3 7 . . . 8 9 4 5 1 1 1 1 1 0 0 1 4 7 0 2 . . . . 9 4 2 1 Other textile products......................... 127.0 120.3 1 18.'8 119,1 Motor vehicles................................. 100 5 100 I '101.7 101 .7 Transportation equip., R.R. rolling Hides, skins, leather, and products: stock (Jan. 1961—100)................ 101.0 101 0 101.0 101 .0 Hides and skins................................... 126.5 134.2 120 8 114,3 Leather................................................. 113.3 121.8 117 5 114,1 Furniture and other household durables: Footwear............................................. 113.7 119.1 rl 20 1 120 1 Other leather products....................... 109.0 115,1 '115.6 115.1 Household furniture............................ 106.6 109.8 '110.3 III 5 Commercial furniture......................... 104.0 106.0 107.3 108,0 Fuels and related products, and power: Floor coverings...................... 97.4 96 6 96.6 96.6 Household appliances................... 88.6 88.9 '88,6 88.7 Coal..................................................... 97 5 99.6 '100.6 101 8 Television, radios, and phonographs.. 84.5 83.3 83.8 83.8 107.3 112.0 112.0 112 0 Other household durable goods......... 106.2 107.9 '109.3 109.4 Gas fuels (Jan. 1958- 100)................. 126.8 129 2 rl30 7 130 7 E Pe le tr c o tr l i e c u m po w pr e o r d ( u J c a t n s . , 1 re 9 f 5 in 8= ed 1 .. 0 .. 0 .. ) .. . . . . . . . . . . . . . . . 1 9 0 8 0 . . 1 8 1 1 0 00 1 , , 3 0 'i 1 o 01 d ‘2 3 1 1 0 0 0 1 . . 2 3 Nonmetallic mineral products: Chemicals and allied products: Flat glass............................................... 99.9 100.6 102.1 102,7 Concrete ingredients........................... 103.4 103.9 '104.3 104.3 95.5 95.8 95.9 95.9 Concrete products............................... 101.8 103.6 '103.5 103.5 1 8 0 9 5 . .9 0 1 9 0 0 6 . . 3 8 1 9 0 0 7 . .3 2 1 9 0 0 8. . 0 4 S G t y ru p c su tu m ra l p c ro la d y u p ct r s o . d ... u .. c .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 0 8 5 . .4 6 1 1 0 0 6 2 . . 7 7 '1 1 0 0 6 2 . . 9 7 1 10 0 7 3 . . 1 5 Drugs and pharmaceuticals......... 94.7 94.8 95.0 95.0 Asphalt roofing.................................... 94.6 97.6 97.6 97.6 106.7 103.8 r94.5 92.0 Other nonmetallic minerals................ 101.0 101.8 '102,0 101.1 Mixed fertilizers......................... 105.2 105,8 106 1 105 9 Fertilizer materials............................... 103.8 102 5 103.7 105 0 'Tobaccoproducts and bottled beverages: Other chemicals and products............ 100.1 101 0 MOI 2 101 2 Tobacco products.............................. 106.1 110.3 110.3 110.3 Rubber and products: Alcoholic beverages,........................... 100.9 101.0 101.0 101 .0 Nonalcoholic beverages....................... 128.5 132.2 132.2 132.2 Crude rubber....................................... 89.3 87 9 87 4 87 9 Tires and tubes.................................... 91.1 93.4 93.4 93.4 Miscellaneous rubber products.......... 97.7 99,0 98 9 99.2 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms .... 103.0 104.8 '105.0 104.8 Manufactured anima! feeds................ 1 19,9 132.3 '128. 1 128,4 Lumber................................................. 103.0 109.5 ' 108 0 105.9 Notions and accessories...................... 99.1 100.8 100. 8 100.8 Millwork............................................... 107.8 110 9 1 10.8 1 10.3 Jewelry, watches, photo equipment... 105.1 105,2 105.2 106.2 Plywood............................................... 91.7 89.2 '88. 1 86.9 Other miscellaneous products............. 104.7 105.9 106.0 106.8 Note—Bureau of Labor Statistics. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

146 NATIONAL PRODUCT AND INCOME JANUARY 1967 GROSS NATIONAL PRODUCT (In billions of dollars) 1965 1966 Item 1929 1933 1941 1950 1961 1962 1963 1964 1965 III IV I II IIP Gross national product. .................................. 103.1 55.6 124.5 284.8 520.1 560.3 590.5 631.7 681.2 686.5 704.4 721.2 732.3 744.6 Final purchases.............................. . 101.4 57.2 120.1 278.0 518.1 554.3 584.6 627.0 672.1 677.8 694.0 712.3 720.0 734.6 Personal consumption expenditures................ 77.2 45.8 80.6 191.0 335.2 355.1 375.0 401.4 431.5 435.0 445.2 455.6 460,1 469.9 Durable goods.............................. 9.2 3.5 9.6 30.5 44.2 49.5 53.9 59.4 66.1 66.7 68.0 70.3 67.1 70.2 Nondurable goods..................................... 37.7 22.3 42.9 98.1 155.9 162.6 168.6 178.9 190.6 191.4 197.0 201.9 205.6 208.1 Services.................................................. 30.3 20.1 28.1 62.4 135,1 143.0 152.4 163.1 174.8 176.9 180.2 183.4 187.4 191.5 Gross private domestic investment................... 16.2 1.4 17.9 54.1 71.7 83.0 87.1 93.0 106.6 106.7 111.9 114.5 118.5 115.0 Fixed investment ■........................................ 14.5 3.0 13.4 47.3 69.7 77.0 81.3 88.3 97.5 98.0 101.5 105.6 106.2 105.1 Nonresident ial.......................................... 10.6 2.4 9.5 27.9 47,0 51.7 54.3 60.7 69.7 70.2 73.9 77.0 78.2 80.3 Structures........................................... 5.0 .9 2.9 9.2 18.4 19.2 19.5 21.0 24.9 24.4 26.8 28.5 27.9 27.7 Producers* durable equipment........ 5.6 1.5 6.6 18.7 28.6 32.5 34.8 39.7 44.8 45.8 47.1 48.5 50.3 52,6 Residential structures............................... 4.0 .6 3.9 19.4 22.6 25.3 27.0 27.6 27.8 27.8 27.6 28.6 28.0 24.8 Nonfarm.......................................... 3.8 .5 3.7 18.6 22.0 24,8 26.4 27.0 27.2 27,3 27.0 28.0 27.4 24.3 Change in business inventories........... 1.7 -1.6 4.5 6.8 2.0 6.0 5.9 4.7 9.1 8.7 10.4 8.9 12.3 9.9 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 1.7 5.3 5.1 5.3 8.1 7.2 9.0 8.5 12. 1 10.4 Net exports of goods and services.................. 1.1 .4 1,3 1.8 5.6 5.1 5.9 8.5 7.0 7.1 6.1 6.0 4.7 4.2 Exports......................................................... 7.0 2.4 5.9 13.8 28,6 30.3 32.3 37.0 39.0 40.1 40.3 41.7 41.9 43.4 Imports................................ ................. 5.9 2.0 4.6 12.0 22.9 25.1 26.4 28.5 32.0 33,0 34.2 35.6 37.3 39.2 Government purchases of goods and services. . 8.5 8.0 24.8 37.9 107.6 117.1 122.5 128.9 136.2 137.7 141.2 145.0 149.0 155.5 Federal.......................................................... 1.3 2.0 16.9 18.4 57.4 63.4 64.2 65.2 66.8 67.5 69.8 71.9 74.0 78.3 National defense....................................... 13.8 14.1 47.8 51.6 50.8 50.0 50.1 50.7 52.5 54.6 57.1 61.3 Other.......................................................... 3.1 4.3 9.6 11.8 13.5 15.2 16.7 16.8 17,3 17.4 16.9 17.0 State and local.............................................. 7.2 6.0 7.9 19.5 50.2 53.7 58.2 63.7 69.4 70.2 71.4 73.1 75.0 77.2 Gross national product in constant (1958) dollars........................................................ 203.6 141.5 263.7 355.3 497.3 529.8 551.0 580.0 614.4 618.2 631.2 640.5 643.5 649.3 Note,—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Supplement to the Survey of Current Business for Aug. 1966. NATIONAL INCOME (In billions of dollars) 1965 1966 Item 1929 1933 1941 1950 1961 1962 1963 1964 1965 III IV I II IIP National income................................................ 86.8 40.3 104.2 241.1 427.3 457.7 481.9 517.3 559.0 562.7 577.8 595.7 604.1 [613.8 Compensation of employees............................. 51.1 29.5 64.8 154.6 302.6 323.6 341.0 365.7 392.9 395.6 406.5 419.6 427.9 438.3 Usages and salaries........................................ 50.4 29.0 62.1 146.8 278.1 296.1 311.1 333.6 358.4 360.8 370.8 380.0 387.4 396.7 Private...................................................... 45.5 23.9 51.9 124.4 225.9 240.1 251.6 269.3 289.1 291.1 298.5 305.9 311.5 318.0 Military...................................................... .3 .3 1.9 5.0 10.2 10.8 10.8 11.7 12.1 12.0 13.0 13,6 14.1 15.0 Government civilian................................. 4.6 4.9 8.3 17.4 42,0 45.2 48.6 52.6 57.1 57.7 59.3 60.4 61.8 63.7 Supplements to wages and salaries............... .7 .5 2.7 7.8 24.6 27.5 29.9 32.0 34.5 34.8 35.7 39.6 40.5 41.5 Employer contributions for social insurance .................................................. .1 .1 2.0 4.0 11.8 13.7 15,0 15.4 16.0 16.0 16,3 19.6 19.9 20,4 Other labor income.................................. .6 .4 .7 3.8 12.7 13.9 14.9 16.6 18.5 18.8 19.4 20.0 20.6 21.1 Proprietors’ income........................................... 15.1 5.9 17.5 37.5 48.4 50.1 51.0 51.9 55.7 56.7 57.1 58.4 57.9 57.3 Business and professional............................ 9.0 3.3 11.1 24.0 35.6 37.1 37.9 39.9 40.7 40.7 41.1 41.4 41.6 41.9 Farm.............................................................. 6.2 2.6 6.4 13.5 12.8 13.0 13.1 12.0 15.1 16.0 16.0 17.0 16.3 15.4 Rental income of persons................................. 5.4 2.0 3.5 9.4 16.0 16.7 17.1 17.7 18.3 18.4 18.5 18.7 18.8 18.9 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 50.3 55.7 58.9 66.6 74.2 74.0 76.9 80.0 79.9 79.1 Profits before tax........................................... 10.0 1.0 17.7 42,6 50.3 55.4 59.4 67.0 75.7 75.0 78.7 82.7 82.8 81.9 Profits tax liability.............................. 1.4 .5 7.6 17,8 23.1 24.2 26.3 28.4 31.2 30.9 32,4 34.1 34.1 33,7 Profits after tax........................................ 8.6 .4 10.1 24.9 27.2 31.2 33.1 38.7 44.5 44,1 46.3 48.7 48.7 48.2 Dividends.............................................. 5.8 2.0 4.4 8.8 13,8 15.2 16.5 17.3 19.2 19.5 20.2 20.9 21.1 21.1 Undistributed profits............................ 2.8 -1.6 5.7 16.0 13.5 16.0 16.6 21.3 25.3 24,6 26.1 27,8 27.6 27.1 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -.1 .3 -.5 -.4 — 1.5 -1.0 -1.8 -2.8 -2.9 -2.8 Net interest........................................................ 4.7 4.1 3.2 2.0 10.0 11.6 13.8 15.5 17.8 18.1 18.7 19.1 19.6 20.2 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 NATIONAL PRODUCT AND INCOME 147 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1965 1966 Item 1929 1933 1941 1950 1961 1962 1963 1964 1965 III IV I II III* Cross national product..................................... 103.1 55.6 124.5 284. 8 520.1 560.3 590.5 631.7 681.2 686.5 704.4 721.2 732.3 744.6 Less ■ Capital consumption allowances......... 7.9 7.0 8.2 18.3 45.2 50.0 52.6 56.0 59.6 60.2 60. 8 61.6 62.7 63.7 Indirect business tax and nontax lia­ bility. ...................... 7.0 7.1 11.3 23.3 47.7 51.5 54.7 58.5 62.7 62.7 63.6 63.0 64.7 66.3 Business transfer payments............. .6 .7 .5 .8 2.0 2.1 2.3 2.5 2.6 2.5 2.6 2.6 2.6 2.6 Statistical discrepancy,......................... .7 .6 .4 1.5 -.7 .5 -.3 -1.4 -1.6 -.8 .4 — .8 -.9 -.3 Plus: Subsidies less current surplus of gov­ ernment enterprises............ -. 1 . 1 .2 1.4 1.4 .8 1.3 1.0 .9 .9 .8 ,9 1.5 Equals: National income.................................. 86.8 40.3 104.2 241.1 427.3 457.7 481.9 517.3 559.0 562.7 577.8 595.7 604.1 613.8 Less: Corporate profits and inventory valu­ ation adjustment................ 10.5 -1.2 15.2 37.7 50.3 55.7 58.9 66.6 74.2 74.0 76.9 80.0 79.9 79.1 Contributions for social insurance. ... .2 .3 2.8 6.9 21.4 24.0 26.9 28.0 29.2 29.2 29.8 36.5 37.0 38.5 Excess of wage accruals over disburse­ ments ............................................. Plus: Government transfer payments........... .9 1.5 2.6 14.3 30.4 31.2 33.0 34.2 37.1 39.4 37.9 40.0 40.1 42.3 Net interest paid by government and consumer........................................ 2.5 1.6 2.2 7.2 15.0 16. 1 17.6 19.1 20.6 20.9 21.0 21.9 22.5 23.0 Dividends.............................................. 5.8 2.0 4.4 8.8 13.8 15.2 16.5 17.3 19.2 19.5 20.2 20.9 21. i 21.1 Business transfer payments.................. .6 .7 .5 .8 2.0 2.1 2.3 2.5 2.6 2.5 2.6 2.6 2.6 2.6 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 416.8 442.6 465.5 496.0 535.1 541.9 552.8 564.6 573.5 585.2 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 52.4 57.4 60.9 59.4 66.0 65.7 66,7 69.5 73.6 77.4 Equals: Disposable personal income......... 83.3 45.5 92.7 206.9 364.4 385.3 404.6 436.6 469.1 476.2 486.1 495. 1 499.9 507.8 Less.' Personal outlays................................... 79. 1 46.5 81.7 193.9 343.2 363.7 384.7 412.1 443.4 447.1 457.6 468.4 473.3 483.3 Personal consumption expenditures,. 77.2 45.8 80.6 191.0 335.2 355.1 375 0 401.4 431.5 435.0 445.2 455.6 460.1 469.9 Consumer interest payments............ 1.5 .5 .9 2.4 7.6 8.1 9.1 10.1 11.3 11.5 11.8 12.1 12.5 12.8 Personal transfer payments to for­ eigners........................................ .3 .2 .2 .4 .5 .5 .6 .6 .6 .6 .6 .6 .7 .7 Equals: Personal saving................................. 4.2 -.9 11.0 13.1 21.2 21.6 19.9 24.5 25.7 29.0 28.5 26.7 26.6 24.5 Disposable persona] income in constant (1958) dollars....................................................... 150.6 112.2 190.3 249.6 350.7 367.3 381.3 406.5 430.8 436.8 443.9 448.4 447.9 452.2 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted quarterly totals at annual rates. See also Note to table opposite. PERSONAL INCOME (In billions of dollars) 1965 1966 Item 1965 1966* Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.* Total personal income......................... 535.1 580.4 558.2 560.2 564.7 569.0 570.5 573.0 577.2 580.0 585.4 590.0 594.4 598.5 601.5 Wage and salary disbursements.......... 358.4 392.3 374.1 376.8 380.1 382.9 384.7 387.0 390.5 393.7 397.0 399.5 402.3 405.1 407.4 Commodity-producing industries... 144.3 158.2 150.7 152.1 153.9 155.4 156.0 156.8 158.1 158.2 159.8 160.7 161.5 162.4 163.0 Manufacturing only.............. 115.5 127.2 120.3 121.8 123.3 124.0 125.2 125.9 127.0 127.1 128.9 129.6 130.7 131.4 131.6 Distributive industries..................... 86.7 93.1 89,7 90.1 90.9 91.4 91.5 91.9 92.8 93.6 93.9 94.4 95.1 95.8 96.3 Service industries............................. 58.1 63.5 60.9 61.1 61.2 61.7 62.0 62.5 63.0 64.0 64.5 64.9 65.4 65.8 66.2 Government..................................... 69.2 77.4 72.9 73.6 74.1 74.5 75.2 75.9 76.6 78.0 78.8 79.5 80.2 81.0 81.9 Other labor income..................... 18.5 20.8 19.6 19.8 20.0 20.2 20.4 20.6 20.7 20.9 2t.l 21.3 21.5 21.7 21.9 Proprietors’ income............................. 55.8 57.8 57.5 58.1 58.3 58.8 58.2 57.9 57.6 57.3 57.3 57.3 57.2 57.4 57.8 Business and professional................ 40.7 41.8 41.3 41.3 41.3 41.5 41,5 41.6 41.7 41.8 41.9 42.0 42.1 42.2 42.4 Farm................................................. 15.1 16.0 16.2 16.8 17.0 17.3 16.7 16.3 15.9 15.5 15.4 15.3 15.1 15.2 15.4 Rental income...................................... 18.3 18.9 18.6 18.6 18.7 18.7 18.7 18.8 18.8 18.9 18.9 19.0 19.0 19.1 19.2 Dividends............................................. 19.2 20.9 20.5 20.8 21.0 20.9 21.0 21.2 21.1 21.1 21.0 21.2 21.2 21.2 19.8 Personal interest income.............. 38.4 42.8 40.0 40.5 41.0 41.4 41.8 42.1 42.3 42.6 43.1 43.8 44.3 44.8 45.3 Transfer payments.............................. 39.7 44.5 41.4 42.3 42.6 42.9 42.6 42.5 43.2 43.5 45.1 46.0 47.2 47.8 48.8 Less: Personal contributions for social insurance............................ 13.2 17.6 13.6 16.8 16.9 16.9 17.0 17.1 17.2 17.9 18.1 18,2 18.3 18.5 18.6 N onagri cultural income........................ 515.6 559.7 537.2 538.8 543.0 547.0 549.1 551.9 556.5 559.8 565.4 570.1 574.6 578.6 581.4 Agriculture income.............................. 19.5 20.7 21.0 21.4 21.7 22.0 21.4 21.0 20.7 20.2 20.1 20.0 19.8 19.9 20.1 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR THIRD QUARTER, 1966— SEASONALLY ADJUSTED ANNUAL RATES (In billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest of State U.S. the All Natl. Sector H h o o u ld se s ­ B n u es s s i­ a g nd o v l t o s c . al Total Govt. Total M a o u n t e h ta . ry C ba o n m k l s . N f o in n a b n a c n e k world sectors Di a s n c c r y ep­ and sa i v n in v g es t­ ment Transaction category u s u s u s u s U S U S u s u s u s u s u s U 1 Gross saving............................ ......... 108.4 ......... 73.7 1.1 ............ 183.2 ........ -1.0 ...........................2 2.3 2 0 -2.0 184.7 -.5 186.7......... 1 2 Capital consumption.......... ......... 64 4 ........ 53.7 ......... 118.1 ........ 1.0 ................5 ......... 119 1 119.1......... 2 3 Net saving (1—2)................ . . 44 0 . 20 0 .... 11 ......... 65.1 ......... —10 9 1 S — 2 0 - 65 6 67.6........ 3 4 Gross investment (5+10)........ 114.9 ............ 69.4............ .6............ 184.9 -5.8........ 5.9......... .2........ 3.4 ....... 2.4............ -2.8....1..8..2..2 ........ 3.0 188.0 . . 4 5 Private cap. expend., net........ 94.4........ 90.5............ 184.8............ .4 . .4............ 185.3 ......... 185.3......... 5 6 Consumer durables....... 70-2......... 70.2......... 70.2 ... 70.2......... 6 7 Residential constr................ 19.8........ 5.0......... 24.8......... 24.8......... 24.8......... 7 8 Plant and equipment.......... 4 3........ 79.9........ 4 .4........ 80.3 ... 80.3......... 8 9 Inventory change 9 9........ 9 9. . 9 9.. 9.9......... 9 10 Net financial invest. (11 —12) . 20.5........ -21.0........ .6............ .1 -5.8........ 5.5........ 3.4........ 1.9............ -2.8.....-..3...0......... 3.0 2.8......... 10 Il Financial uses, net.................. 43.9........ 11.3............ 8.4............ 66.6............ -.4........ 30.3......... 5.2......... 3.3......... 21.8............ 2.2......9..8..7......... 4.9......... 11 12 Financial sources..................... 23 4 ......... 35.3 7.9 ........ 66.5 ........ 5.4 ......... 24.8 . —.1 ............ 19.9 4.9 ......... 101.7 2.2......... 12 13 Gold & off. U.S. fgn. exch.. .4........ .4........ .7 .4 .4 .4 ................... 13 14 Treasury currency .... .5 .7 .2 14 15 Dem. dep. and currency... ...............-11.4 ........ 14 -12.7 -14.5 -11.4 15 16 Private domestic.............. -1.6........ -1.2........ - I -3.0........ .5 -1.7 ........ 2.0 ......... -3.7 -2.5 -1.7 .8 ................... 16 17 U.S. Govt........................ — 9.7........ ........ -7.3 ........ -.2 -7.1 -9.7 -7.3 2.4 ................... 17 18 Foreign.......................... . . . -2.4 ........... -.5 .... -1.9 — 2.4............... -2 4 .............. 18 19 Time and svgs. accounts... 17.5........ 15.5........ — .3 15.7 -.3........ ......... 15.7 ................. 19 20 At coml. banks............... 12.4........ -3.9........ 1.9......... 10.4 . . 11.0 11.0 .6......... ........ 11.0 ................... 20 21 At svgs. instit........5....1. .... .... .. -.3 4.7 -.3 4.7 ....... 4.7 .......... 21 22 Life insur. reserves............. 4.8......... 4.8 . ........ i . . 4.7 ......... 4.7 ........ 4.8 ................... 22 23 Pension fund reserves..... 12 7......... O 7 12.7 2.7 ........ i.i ....... 8 9 ........ 8 9 ........ 12.7 ................... 23 24 Consol, bank items 1...... 4.5 4.5 .4 4.1 4.1 .4 4.5 4.5 .................... 24 25 Credit mkt. instr................. 15.2 24.6 4.0 28.1 6.7 5.1 25.9 57.8 6.3 2.8 33.6 2.9 4.0 . 5'1 * 21.5 2.9 -2.1 2 63.8 63.7 .................... 25 26 U.S. Govt, securities.... 8.5........ -1.5........ 1.3......... 8 3......... ........ 2 8 — 2.0 .. 4.7........ 1.0........ —3 5................. 2 8 26 27 State and local oblig........ 2.8......... .7 -.4 4.8 3.1 4.8 1.6........ 2 1........ ........ 4.8 ............ 27 28 Corp, and foreign bonds. 3 6......... . 10 8 5 5......... 9.0 10.8 3.5 1.9 3.5 1.9 .7 .5'......... 13.2 ................. 28 29 Corp, stocks..................... ...................9 -.7 .9 5.0 3.8 • 5.0 3.8 -.1 -.4 ........ 4.2 ................... 29 30 1- to 4-family mortgages. 1.0 13.3 ......... -2.2 4........1..4 11.2 2.2........ 5.8 -1.8 9 7 3.1 -1.8 9 4 ................... 30 31 Other mortgages.............. ......... 1.2 ......... 7.2 ......... 8.5 "’9........ 2.3......... 5.3........ 8 5 ....... 31 32 Consumer credit............... ......... 6.9 1 2........ 1.2 6.9 3.4........ 2.3........ ........ 6.9 ................... 32 33 Bank loans n.e.c........ 10 ........ 8.5 9.5 3.1 -6.4 • 3.1......... ......... -6.4 ........ 3.1 ................... 33 34 Ollier loans...................... ......... 2.1 3.5 2.8 ...................3 3.5 5.3 3^3 3.3 5.4 2.3......... 1.8 5.4 .9 .2 11.0 10.9 -.1 ................... 34 35 Open market paper . .. 3.5 2.1 3.5 2.1 1.3 4.3 — .8 2.3 -.2 4.3 .9 -.7 .............. 35 36 Federal Ioans............... ........ 1 .............s ........ 3 ......... 1.2 3.2........ ........ 11 ......... 1.1 ..................9 ........ 3 2 ................... 36 37 Security credit...................... -.1 -1.6 -.1 -1.6 -6.2 -4.8 —4 1....-..2...1 -4.8 * ........ —6 4 ................... 37 38 To brkrs. and dealers.... — 1........ -.1 ........ -4.6 -4.8 -4 3 -.3 -4.8 ........ —4 8 ................... 38 39 To others......................... ......... -1.6 ......... -1.6 — 16... 0 -1.8........ * ......... -16 ................. 39 40 Taxes payable...................... 9 7 -.1 ■. ■ . -.1 2.7 1.6........ ♦ - 1 1.5 2.7 1.2 ................... 40 41 Trade credit................ 1 9.0 4.5 1 9.0 4.7 2.0 .9 0 11.2 5.5 —5.6 ................... 41 42 Equity in noncorp, business- — 5.4 —5.4 ................... 42 43 Mise, financial trans....... .9 .2 6.5 5.5 7.3 5.7 .1 -.2 -2.7 4.3 ........ -.4 ■4.8 1.4 2.0 3.3 5.3 4.3 10.0 14.1 4.1 ....... 43 44 Sector discrepancies (1 ~4)... — 6.5......... 4.2........ 6....-..1....7........ 4.9........ — 1.5........ -1.1......... -.4........ ,s......... 2 5... 2.5 -1.3......... 44 1 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, Note.—Beginning with this presentation, C.C.C. and Export-Import Bank loan participation certifi­ F.R. loans to banks. F.R. float, and stock at F.R. banks cates are reclassified from other loans to U.S. Govt, securities. 148 FLOW OF FUNDS JANUARY 1967 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FLOW OF FUNDS 149 2. SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1 1964 1965 1966 Transaction category, ot sector 1961 1962 1963 1964 1965 1 Hr IV I II III IV U IF III I. Saving and investment 1 Gross national saving........................ 119.7 134.5 144.5 159.4 178.4 161.3 165.5 176.8 175.3 178.4 183.0 188,2 188.3 186.7 1 2 Households.................................... 75.7 82.0 85.8 96.8 105.1 97.2 98.5 100.9 100. 1 109.0 110.5 111,2 107.6 108.4 2 3 Farm and noncorp, business....... I2.6 13,1 13.5 14.4 15.0 14.6 14.8 14.9 15.0 15.1 15.2 15.3 15.5 15.7 3 4 Corporate nonfin. business.......... 35.6 41 .8 43.9 50.8 55.3 52.0 51 .3 55.0 54.5 55.5 56,4 57.7 57.5 57.9 4 5 U.S. Government......................... -4.8 -4.8 -.6 -4.3 .2 -4.4 -1.6 3.2 2.7 -4.0 -1 .1 1.2 2. 1 -1.0 5 6 State and local govt...................... -2.9 -1.4 -1.5 -1.4 -1.( -1.0 -.5 -.9 -.9 -1.0 -1.1 .9 1. 1 6 7 Financial sectors..................... 3.4 3.8 3.5 3.1 3.6 3. 1 3. 1 3.6 3,9 3.9 3.1 3.0 4.5 4.5 7 8 Gross national investment................. 117.9 133.9 143.8 157.0 176.4 158.7 160.7 172.6 172.7 176.9 183.1 186,3 187.4 188.0 8 9 Consumer durable goods.............. 44.2 49.5 53.9 59.4 66. 1 61.1 58.8 65. 1 64,4 66.7 68.0 70.3 67. 1 70.2 9 10 Business inventories..................... 2.0 6.0 5.9 4.7 9.1 3.6 7.4 9.5 7.7 8.8 IO.4 9.0 12.3 9.9 10 11 Gross pvt. fixed investment......... 69.7 77.0 81.3 88.3 97.5 88.9 90.0 94.4 96.0 98.0 10I .5 105.6 106.2 105.1 1 1 12 Households................................ 20.5 21.9 22.4 23.2 23.7 22,8 23.3 22.9 23,2 23.6 24.9 24.7 24.4 24.2 12 13 Nonfinan. business................... 48.4 54.4 57.9 64.2 73.0 65.2 65.8 70.5 71 .9 73.5 76. I 80.5 81 .4 80.5 13 14 Financial sectors....................... .7 .6 1.0 .9 .8 .9 .9 .9 .9 .9 . 4 .4 .5 .4 14 15 Net financial investment............... 2.0 1.3 2.8 4.7 3.7 5. 1 4.5 3.6 4.6 3.5 3.2 1 .5 1.7 2.8 15 16 Discrepancy (1-8)............................. 1.8 .7 .6 2.4 2.0 2.6 4.8 4.2 2.6 1.5 -.2 1 .9 1.0 -1.3 16 H. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 44.2 54.2 58.5 67.0 72.1 67.7 67.3 76.3 72.2 61.2 78.7 81.6 80.5 60.8 17 18 Loans and short-term securities... . 16.0 15.0 19.0 26.4 33.0 25.5 34.8 36.8 33. 1 21.2 41. I 22.1 18.8 27.9 18 19 Long-term securities and mtgs......... 28.1 39.2 39.5 40.6 39.1 42.2 32.5 39.5 39.2 40,0 37.7 59.5 61.6 32.9 19 By sector 20 U.S. Government............................. 7.7 7.9 5.0 7.0 3.5 8.3 4.4 9.0 1.4 -4.5 8.2 14.4 3.5 2.8 20 21 Short-term mkt. securities............ 8.9 .6 1.4 4.0 3.5 4.4 8.6 5.5 3.6 -3.5 8.3 -1.2 -12.0 6. 1 21 22 Other securities. ........................... -1.2 7.3 3.6 3.0 . 1 3.9 -4. 1 3.6 -2.3 -1.0 -. 1 15.6 15.4 -3.3 22 23 Foreign borrowers............................ 2.6 2. 1 3.3 4.4 2.6 3.3 6.4 5.1 1.6 1 .0 2.7 2.3 2.3 .2 23 24 Loans............................................ 1.8 1 . 1 2,2 3.7 1.9 3,3 4.4 4.3 1.1 .2 1.9 1 .0 2.0 .2 24 25 Securities........................................ .8 1.0 1. 1 .7 .8 * 2.0 .8 .6 .8 .8 1.3 . 3 . 1 25 26 Pvt. domestic nonfin. sectors........... 33.9 44.2 50.2 55.6 66.0 56.0 56.4 62. 1 69.2 64.7 67.8 64.9 74.7 57.8 26 27 Loans............................................. 5.4 13.3 15.5 18.7 27.7 17,7 21.8 27.0 28.4 24.5 30.9 22,3 28.8 21.7 27 28 Consumer credit......................... 1.7 5.5 7.3 8.0 9.4 8.1 7.2 10.0 9.6 9.3 8.9 8.7 7.0 6.9 28 29 Bank loans n.e.c........................ 2.2 4.8 5.4 6.5 13.6 5.1 11.4 14.1 12.4 11.2 16.7 7.7 15.2 9.5 29 30 Other loans................................. 1.6 3.0 2.7 4.2 4.7 4.5 3.1 2.9 6.4 4. 1 5.3 5.9 6.6 5.3 30 31 Securities and mortgages............. 28.6 31.0 34.7 36.9 38.3 38,3 34.7 35.1 40.8 40. 1 37,0 42.6 45.9 36.1 31 32 State and local obligations........ 4.9 5.0 6.7 5.9 7.4 7.1 5.8 6.1 8.6 6.8 8, 1 5.5 7.2 4.8 32 33 Corporate securities................... 7.1 5. 1 3.6 5.4 5.4 5.0 3. 1 4.4 7.0 7.4 2.9 II.9 15.2 11.7 33 34 7- to 4-family mortgages........... H.4 13.0 15.2 15.7 16.0 15.4 15.2 15.9 15.5 16.2 16.5 15.1 13.8 11.2 34 35 Other mortgages........................ 5.1 7.9 9.3 10.0 9.5 10.9 10.5 8. 7 9.7 9.8 9.5 10. 1 9.7 8.5 35 36 Net sources of credit (— 17)............. 44.2 54.2 58.5 67.0 72.1 67.7 67.3 76.3 72.2 61.2 7K.7 81.6 80.5 60.8 36 37 Chg. in U.S. Govt, cash balance.. * 1.3 -.4 .2 - 1.0 1.7 -1.4 5.2 -.9 - 10.4 2. 1 -3.9 9.6 -7.3 37 38 U.S. Govt, lending..................... 2.6 3.3 2.7 3.8 4,7 3.2 3.6 5.3 6.4 3.1 3.9 11,3 9.9 6.3 38 39 Foreign funds..................... 1 .9 2.2 1.9 2.5 .4 1.9 3.9 - .6 .5 -.9 2.7 -1.7 4.0 -3.8 39 40 Pvt. insur. & pension reserves.... 8.6 9.0 10.1 1 1 . 1 1 1.6 10.3 1 1 .9 10.9 12,0 12.0 11.7 13.5 10.8 13.5 40 41 Sources n.e.c.................................. 4.7 4.0 4.7 5.4 7.4 6.2 5.2 10. 1 8.7 3.4 7.4 1.0 5.5 11.5 41 42 Pvt. domestic nonfin. sectors....... 26.3 34.4 39.5 44. 1 48.9 44.4 44.2 45.2 45.6 54.0 51.0 61.4 40.7 40.6 42 43 Liquid assets.............................. 24.9 31.4 37.4 33.0 43.3 30.6 37.9 44.5 35.2 44.3 49.1 39.9 18.9 14.8 43 44 Deposits................................. 24.0 30. 1 34.4 35.3 40,4 36.8 42.7 38.2 31 .5 43.4 48,6 34.8 19.7 13.3 44 45 Demand dep. and currency 3.8 2. 1 5.9 6.5 7.8 7.7 10.2 3. 1 2.6 8,7 16.8 10.2 -1.2 -2.2 45 46 Time and svgs. accounts... 20.2 28.1 28,5 28.8 32.6 29,1 32.5 35. 1 28.9 34.7 31 .8 24.6 20.9 15.5 46 47 At commercial banks.... 9.0 15.0 13.4 13.0 19.5 12.1 17.2 21.8 16.6 21.5 18. 1 14.9 16.8 10. 4 47 48 At savings instit.............. 11.2 13.0 15.1 15.8 13.1 17.1 15.2 13.3 12.3 13.2 13,6 9.7 4.1 5. 1 48 49 Short-term U.S. Govt. sec... .9 1.3 3,0 -2.3 2.8 -6.2 -4.8 6.3 3.7 .9 .5 5.2 -.8 1.5 49 50 Other U.S. Govt, securities.... -1.4 .4 1 .7 3.1 .2 3.8 L6 -.7 3.5 -1.0 -1 .1 8.1 7.3 6.8 50 51 Pvt. credit mkt. instruments. . . 4. 1 2.5 2.3 7.8 6.1 9.2 4.7 1.7 6.2 10.5 6.0 13.3 14.3 17.6 51 52 Less security debt..................... 1 .3 2.0 -.2 .6 -.8 * .3 -.7 ”.2 3.0 -.1 - .2 -1.4 52 III. Direct lending in credit markets 53 Total funds raised............................. 44.2 54.2 58.5 67.0 72.1 67.7 67.3 763 72.2 61.2 78.7 81.6 80.5 60.8 53 54 Less change in U.S. Govt, cash .... * 1.3 -.3 0 -1.0 1 .7 -1.5 5.3 -.9 -10.4 2.1 -3.9 9.7 -7.3 54 55 Total net of U.S. Govt. cash....... 44.1 52.9 58,8 66.8 73.1 66.0 68.8 71.0 73.2 71.6 76.6 85,5 70.8 68.1 55 56 Funds supplied directly to cr. mkts.. 44.1 52.9 58.8 66.8 73.1 66.0 68.8 71.0 73.2 71.6 76.6 85.5 70.8 68.1 56 57 Federal Reserve System............... 1.5 1.9 2.6 3.2 3.8 3.5 3.4 5.8 4.1 3.1 2.4 3.4 2.7 4.2 57 58 Total.......................................... 1.5 2.0 2.9 3.4 3.8 3.5 3.8 6.0 3.8 4.3 1.2 3.0 4.7 4.0 58 59 Less change in U.S. Govt. cash. * . 1 .3 .2 * * .4 .2 - .3 1.2 -1.2 -.4 2.0 -.2 59 60 Commercial banks, net................ 15.6 18.2 19.7 21.7 29.3 20.5 29.5 25.8 21.3 29.9 40.3 19.2 20.2 11.1 60 61 Total.......................................... 15.8 19.5 19.4 22.2 29.1 22.9 28.0 31 .3 22.7 18.3 43.9 15.8 28. 1 4.0 61 62 Less chg. in U.S. Govt. cash... 1.2 -.6 -1 .0 1 .7 -1.9 5.0 -.6 -11.6 3.3 -3.5 7.7 -7.1 62 63 Security issues....................... .2 . 1 .3 .6 .8 .6 .4 .5 2.0 . 1 .4 . 1 .3 * 63 64 Nonbank finance, net................... 21.3 23.8 28.0 28.9 27.1 31.3 29.6 28.0 27.1 26.9 26.4 26.6 15.5 21.3 64 65 Total.......................................... 23.8 28.5 34.4 33.4 32.7 33.9 31.2 34.7 37.7 24.0 34.6 34.2 21.7 15.6 65 66 Less credit raised...................... 2.5 4.7 6,4 4.4 5.6 2.6 1.5 6.7 10.5 -2,9 8.2 7.6 6.3 -5.7 66 67 U.S. Government......................... 2.6 3.3 2.7 3.8 4.7 3.2 3.6 5.3 6.4 3.1 3.9 11.3 9.9 6.3 67 68 Foreign...................................... .8 1.5 .9 .6 -.2 * 1.3 — ,7 .2 — 1,8 1.4 -1.5 1.7 -2. 1 68 69 Pvt. domestic nonfin.................... 2.4 4.3 5.1 8.8 8.5 7.6 1.5 7.0 14.1 10.6 2.4 26.7 21,0 27,3 69 70 Households................................ .5 -1.7 .4 3.3 2.7 1.9 1 .0 -3.0 H.7 3.8 -1.9 13.9 18.3 15.2 70 71 Business..................................... 2.3 3.1 1.7 .9 1 .2 -1.5 .2 -2.6 4.5 1.7 5.2 -.6 4.0 71 72 State and local govts................. 3.2 3.6 3.5 3.6 5.5 3.7 2.1 10.0 4.3 2.1 5.7 7.4 3.0 6.7 72 73 Less net security credit............. 1.3 -.2 2.0 -.2 .6 -.8 * .3 -.7 3.0 -.1 -•2 -1.4 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. Beginning with this presentation, C.C.C. and Export-Import Bank loan participation certificates are reclassified from other loans to U.S. Govt, securities. See also notes on p. 151. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

150 FLOW OF FUNDS JANUARY 1967 3. PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1964 1965 1966 Transaction category, 1961 1962 1963 1964 1965 or sector HI IV I II III IV II' IIr III I. Demand deposits and currency 2 3 4 1 Ne O U t . t i S D h n . c e o H r r G m . . o . o . i e . u n v . s . s t . t b e i . , c . a h . d . n o . s e . k e . l p . d i c . n o . s t . g o s . . . . i . r . s t . . s s . . y . . . . . . s . . . . . . t . . . . e . . . . . . . m . . . . . . . . . . . . . . . . . l . . . . i . . . . . . a . . . . . . . b . . . . . . . . . . i . . . . l . . . . . i . . . . t . . . . y . . . . . . . . . . . . . . . 4 5 5 . . . . 8 6 6 8 4 2 3 3 1 . . . . . 7 5 2 3 1 - 5 6 4 6 . . . . 3 . 1 8 3 0 7 7 6 6 . . . . . 3 8 4 7 2 -1 7 8 7 8 . . . . . 0 6 5 2 6 9 7 7 4 1 . . . . . 6 9 7 0 4 - 1 1 1 1 1 0 1 0 3 . . . . . 5 3 8 7 9 7 6 2 5 3 . . . . . 3 7 5 3 1 - 2 1 3 . . . . . 9 1 6 9 7 -1 - 1 0 9 6 0 . . . . . 4 1 6 3 1 2 1 1 1 2 1 8 5 9 . . . . . 1 3 4 0 1 - - 3 1 4 8 8 . . . . . 9 9 4 4 4 -2 - — 9 9 . . . . 4 . 7 7 3 6 -1 - - - - 4 7 1 1 1 . . . . . 1 3 7 6 4 2 3 4 5 1 6 Nonfinancial business.......... 1.7 -.9 -.8 -2.5 -1.9 1.0 -8.7 .6 -3.1 -4.5 -.6 2.3 -1.2 -1.2 6 7 State and local govts............ .3 .9 2.4 1.4 1.0 2.5 3.3 -4.5 4.6 3.2 .7 .8 5.5 -.1 7 8 Financial sectors................. 1.0 1.1 .2 .3 .7 -.7 .5 .5 .9 1.5 -1.8 .6 .5 8 9 Mail float................................ 1.0 — . 6 —. 1 .9 1.5 -.3 1.7 . 6 4.0 1.3 9.1 — 2.8 .8 9 10 Rest of the world........................ .7 . 1 . 1 .5 .1 .9 1.1 -.7 -.5 .7 .8 -.1 .3 -2.4 10 If. Time and savings accounts 1 1 1 2 Ne A t t i n c c o r m ea m se e — rc T ia o l t b al a . n .. k ... s . — .... T ... o .. t . a ... l . . . . . . . . . . . . . . . . . . 2 9 0 . .7 4 2 1 8 5 . . 7 6 2 1 9 4 . . 5 3 3 1 0 4 . . 4 5 3 2 2 0 . . 9 0 3 1 0 3. . 1 2 3 1 4 9 . . 5 0 3 22 5 . . 7 5 2 1 9 7 . . 5 6 3 2 4 1 . . 4 4 3 1 2 8 . . 2 4 2 1 4 4 . .7 0 2 1 2 8 . . 3 7 1 1 5 1 . . 7 0 1 1 1 2 1 1 3 4 C St o a r t p e o a r n a d te lo b c u a s l i n g e o s v s t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 9 9 3 1 . . 7 0 3 1 . . 9 6 3 1 . . 2 7 2 3 . . 4 9 2 1 . . 5 1 2 3. . 4 7 6 1 . . 4 9 5 1. . 7 1 2 3. . 1 5 3 . . 3 9 4. . 1 5 2 1 . 1 1 7 -3 1 . . 9 9 1 1 3 4 15 Foreign depositors...................... .3 . 6 1 .0 1.4 . 6 1.0 1.6 .8 . 8 .2 .5 —. 1 2.0 .6 15 16 Households.................................. 6.2 10.3 7.9 8.2. 13.3 8.5 11.2 13.5 9.8 15.8 13.9 11.3 13.0 12.4 16 17 At savings institutions.................... 11.3 13.1 15.2 15.9 12.9 17.1 15.4 12.8 11.9 13.0 13.8 9.3 3.6 4.7 17 18 Memo: Households total................... — 17.4 --- 2 -- 3 -— .4 — 2 -- 3 -- . - 0 ---- 2 - 3 -- . - 9 — 26.4 25.6 --—--. 2 -— 6 -.-— .4 — 26.8 —-- 2 - 2 -- .1 - --- 2 - 9 -— .1 . 27.6 —- 2 - 0 -- . - 9 17.1 17.5 — 18 III. U.S. Govt, securities 19 Total net issues..................................... 7.7 7.9 5.0 7.0 3.5 8.3 4.4 9.0 1.4 -4.5 8.2 14.4 3.5 2.8 19 20 Short-term marketable............... 8.9 .6 1.4 4.0 3.5 4.4 8.6 5.5 3.6 -3.5 8.3 -1.2 -12.0 6. 1 20 21 Other................................................. -1.2 7.3 3.6 3.0 .1 3.9 -4.1 3.6 -2.3 - 1.0 -. 1 15.6 15.4 -3.3 21 22 Net acquisitions, by sector................. 7.7 7.9 5.0 7.0 3.5 8.3 4.4 9.0 1.4 -4.5 8.2 14.4 3.4 2.8 22 23 Federal Reserve System.................. 1.5 1.9 2.8 3.5 3.7 3. 5 3.7 5.9 4.2 4.3 .5 3.3 4.3 4.7 23 24 Short-term................................... -1.1 2.0 4.9 2. 1 3.7 7.1 3.5 12.4 6.2 -.3 -3.6 4.9 -1.8 5.9 24 25 Commercial banks.......................... 5.8 1.4 -2.6 .4 -2.3 3.9 1.7 -2.6 -10.2 -1.7 5.3 -4.4 -.8 -7.7 25 26 Short-term marketable................ 9.3 -5.2 -3.5 3.9 -1.7 4.7 8.5 -10.6 -5.7 2.4 7.2-12.5 — 6.0 -.2 26 27 Other direct................................ -4. 1 5.2 .5 -4.1 -1.4 - 1.2 -9.3 7.9 -5.3 — 6.1 -2.3 7.9 -1.2 -3.8 27 28 Nonguaranteed............................ .7 1.4 .3 .6 .8 .4 2.4 .8 2. 1 .4 .2 6.4 -3.7 28 29 Nonbank finance............................. .4 1 .6 — . 5 2.0 -.8 2.9 . 6 2.2 - .8 -5.9 1.5 4. 6 -5.0 1.0 29 30 Short-term marketable................ 1.2 .8 - 1.3 1.2. - .3 .2 .6 . 1 - . 1 -4.4 3.2 3.1 -2.7 . 8 30 31 Other direct................................. -.8 .6 . 6 .5 -.7 2.4 - .7 2. 1 -1.4 -2.1 -1.5 .6 -2.7 - .7 JI 32 Nonguaranteed............................ .2 .3 .3 . 3 . 3 . 6 ,7 . 5 -. 1 .9 .4 .9 32 33 Foreign............................................. .4 1.3 . 6 .5 -.2 .4 1.7 -2.0 .9 - 1.0 1.5 -2.4 -1.4 -3.5 33 34 Short-term................................... -.6 2.2 -.6 . 1 - .4 -.5 1.7 -1.9 -. 1 -1.5 1.8 -1.6 -1.6 34 35 Pvt. domestic nonfinan. sector .... -.5 1.7 4.7 .8 3.0 -2.4 -3.2 5.6 7.2 -.2 -.7 13.3 6.4 8.3 35 36 Short-term marketable............... . 1 .9 1.8 -3.3 2.2 -7. 1 -5.9 5.5 3.3 .3 -.3 4.8 -1.5 1.2 36 37 Other direct................................. - 1.6 - . 1 1.0 2.8 -1.1 4.1 1.6 -1.3 .5 -2.3 -1.3 4.1 -3.4 4.9 37 38 Nonguaranteed........................... .2 . 5 .7 .4 1.3 —. 3 . 5 3.0 1.3 .2 4.1 10.7 1.9 38 39 Savings bonds—Households.... .8 .4 1.2 .9 .6 .8 1.0 .8 .4 . 5 .8 . 3 .7 .3 39 ------————_—._—— --------- —_^_ —------- —-------- IV. Other securities 40 Total net issues, by sector.................. 13.5 11.5 13.1 14.6 16.2 14.8 13.0 13.3 20.0 16.6 14.9 20.5 23.3 18.4 40 41 State and local govts....................... 4.9 5.0 6.7 5.9 7.4 7.1 5.8 6. 1 8.6 6.8 8.1 5.5 7.2 4.8 41 42 Nonfinancial corporations.............. 7. 1 5.1 3.6 5.4 5.4 5.0 3. 1 4.4 7.0 7.4 2.9 11.9 15.2 11.7 42 43 Commercial banks.......................... .2 . 1 . 3 . 6 .8 . 6 .4 .5 2.0 . 1 .4 . 1 .3 43 44 Finance companies......................... .5 .3 1.4 2. 1 1 .9 2. 1 1.7 1.6 1.8 1.5 2.7 1.6 .3 1.9 44 45 Rest of the world ............................ .8 1.0 1.0 .7 .9 2.0 1.3 1.0 .7 .8 1.7 1.0 . 6 45 46 Net purchases....................................... 13.5 11.5 13.1 14.6 16.2 14.8 13.0 13.3 20.0 16.6 14.9 20.5 23.3 18.4 46 47 Households...................................... 1.3 -1.7 -2.9 1.8 .7 1.8 -1.0 -2.6 2.5 3.6 -.7 5.2 7.2 5.7 47 48 Nonfinancial corporations.............. -.2 -.4 .9 .2 .7 * .3 .6 .7 .8 .8 .8 .8 .7 48 49 State and local govts....................... 2.2 2.0 2.5 2.7 2.7 2.9 2.9 2.5 1.5 3.3 3.3 4. 1 4.0 5. 1 49 50 Commercial banks........................ 2.6 4.4 5.2 3.6 4.9 4.3 4.2 5.0 6.5 4.1 4.1 2.9 2.2 2.1 50 51 Insurance and pension funds......... 8.0 7.5 7.6 7.3 9.7 6.8 7.4 9.0 9.6 10.7 9.4 10.8 8,3 10.0 51 52 Finance n.e.c............................... -.6 - .3 - .2 -.8 -2.0 -.9 -.2 -1.4 .2 -5.0 -1.8 -4.3 -1.2 -5.3 52 53 Security brokers and dealers. . . . -.2 .4 .2 -.4 -.4 .3 .4 .6 -2.8 . 1 -1.6 1.0 -1.4 53 54 Investment cos., net.................... -.5 -.8 - .5 -.8 -1.6 -.5 -.5 -1.8 -.4 -2.2 -1.9 -2.8 -2.2 -4.0 54 55 Portfolio purchases.................. 1.4 1.1 .8 1.1 1.6 1.7 2. 1 .8 1.9 1.3 2.3 2.5 1.1 -.2 55 56 Net issues of own shares........ 1.8 1.9 1.2 1.8 3. 1 2.2 2.6 2.6 2.3 3.5 4.2 5.3 3.3 3.8 56 57 Rest of the world............................ .2 * .2 -.2 -.5 -.4 — . 1 . 1 -1.0 -1.0 -. 1 .6 1.0 .1 57 -------—--------.—.—.—------— ———_— ———— V. Mortgages 58 Total net lending................................. 16.9 21.3 25.0 25.4 25.4 25.9 25.4 24.7 25.4 25.7 25.8 25.6 22.4 17.9 58 59 1- to 4-family................................... 11.8 13.4 15.7 15.4 16.0 15.0 14.9 15.9 15.7 16.0 16.3 15.5 12.7 9.4 59 60 In process..................................... .4 .4 . 5 -.3 -.1 - .3 -.3 .2 -.2 - .2 .4 -1.1 -1.8 60 61 Disbursed................................... 11.4 13.0 15.2 15.7 16.0 15.4 15.2 15.9 15.5 16.2 16.5 15. 1 13.8 11.2 61 62 Other................................................. 5.1 7.9 9.3 10.0 9.5 10.9 10.5 8.7 9.7 9.8 9.5 10. 1 9.7 8.5 62 63 Net acquisitions................................... 16.9 21.3 25.0 25.4 25.4 25.9 25.4 24.7 25.4 25.7 25.8 25.6 22.4 17.9 63 64 Households...................................... * -.3 1 -.6 .4 * -.9 -.6 -I. 1 .1 -2.5 .3 1.0 64 65 U.S. Government............................ .6 .3 -1.0 .3 1.0 . 1 -.2 .7 1.0 .7 1.5 4.6 4.1 3.1 65 66 Commercial banks.......................... 1.6 4.0 4.9 4.5 5.6 4.5 4.6 4.7 5.6 6.4 5.8 5.3 5.3 5.0 66 67 Savings institutions......................... 11.0 13.2 16.1 14.8 13.0 15.2 14.7 13.0 13.0 13.1 12.8 11.4 7.2 3.6 67 68 Insurance......................................... 2.7 3.0 4.0 5.1 5.5 5.2 5.6 5.9 5.5 5.1 5.3 6.0 5.7 5.5 68 69 Mortgage companies....................... .6 .5 .8 .4 .5 . 1 .2 .9 .5 1.0 -. I .4 -.6 -.7 69 ——__——.—.—~— -—---_--_-_- — _^_^_ ———— ——-—------ VI. Bank loans n.e.c. 70 Total net borrowing............................. 3.0 6.2 7.6 8.7 16.4 5.4 13.7 19.2 13.9 12.9 19.6 6.6 19.3 3.1 70 71 Nonfinancial business..................... 1.3 4.3 5.0 5.1 12.3 5.0 8.3 13.5 11.0 9.9 14.8 9.9 15.1 8.5 71 72 Nonbank finance........................... . 1 1.0 1.7 .5 2.4 -1.5 . 1 2.3 2.6 1.3 3.3 -.4 3.8 -6.4 72 73 Households...................................... .9 .5 .4 1.4 1.3 . 1 3.1 .6 1.4 1.3 1.9 -2.1 . 1 1.0 73 74 Rest of the world............................ .7 .4 .5 1.7 .4 1.8 2.2 2.8 -1.1 .4 -.4 -.7 .4 ♦ 74 Note.—Quarterly data are seasonally adjusted totals at annual loan participation certificates are reclassified from other loans to U.S. rates. . . . . Govt, securities. See also notes on p. 151. Re.oinnina with this nrespnta tion C.C.C. and P.xnnrt-Imnort Rank Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FLOW OF FUNDS 151 Notes to Table 2 , of deposits and credit market instruments by households, nonfinancial I, Saving and investment. Derived statistically from Commerce Dept, business, and state and local govts. Line 49 includes household savings income and product accounts. Tables showing the relation to those bonds as well as marketable issues; see Table 3, line 39. Line 51 includes accounts are in Nov. 1965 Bull. Gross national saving (line 1) is the consumer credit and open-market paper in addition to private securities sum for domestic sectors of gross-saving entries in Table 4. It is before and mortgages. Line 52 is net of free credit balances at brokers. deduction of capital consumption allowances. Govt, saving is net of III. Direct lending in credit markets. Federal Reserve total is Table public outlays for capital goods as well as current operations. Gross 4(G), lines 5 less 14. Commercial-bank total, line 62, is Table 4(H), line 5; national investment (line 8) is gross private domestic investment in includes security credit. Nonbank finance totals include security credit income-and-product accounts plus consumer durables plus net foreign both in lending and funds raised and exclude investment company shares investment. Net foreign investment differs from corresponding income- on both sides; line 66 is lines 7 and 16 of Table 4(1), less line 5 of 4(1.8), and-product series by amount of errors and omissions in balance of pay­ and line 67 is line 22 of Table 4(1) plus line 5 of 4(1.7) less line 5 of 4(1.8). ments statement. Line 70 is the net sum of lines 50-53 in Table 2-U. Relation of saving-investment discrepancy to flow of funds matrix is described on page 1 536 of Nov. 1965 Bull. Notes to Table 3 II. Financial fiows-Summary. This table is described in Nov. 1962 I. Demand deposits and currency. Lines 5-8 are holder record; line 9 Bull., p. 1405. Total net funds raised (line 17) is borrowing through is difference between holder and bank record. credit markets (line 25 of Table 1) by households, nonfinancial business, III. U.S. Govt, securities. All holdings stated in par values; excludes govts., and foreigners. Credit market funds raised by all sectors consists special issues to international organizations and includes nonguaranteed of line 17 plus financial-sector borrowing (Table 4(H), line 33 and Table issues of Govt, agencies and loan participation certificates. See note 7 to 4(1), line 22). Table 4(E) below. Short-term category consists of direct marketable U.S. Govt, short-term securities are direct marketable issues due in less issues due in less than one-year plus part of those due in less than 2 years. than 1 year plus part of those due in less than 2 years. For further IV. Other securities. Total excludes open-end investment co. shares; detail see Table 4(E), lines 26-29. these are shown as a deduction on line 56, offsetting net purchases of Demand deposits on lines 37 and 45 are on bank-record basis rather such shares included in the other lines (mainly consumer) under “net than holder records shown in Table 4. Line 37 includes time deposits. purchases." Net purchases includes small amounts for mutual savings Difference is described in Aug. 1959 Bull., p, 852 ff. Foreign funds con­ banks and nonfinancial corporations not shown separately. sist of lines 8-12 of Table 4(J). Sources n.e.c. (line 41) is mainly financial V. Mortgages. Loans in process at savings and loan associations are institution net sources of funds other than deposits, insurance and pen­ included in totals outstanding and treated as savings and loan liability sion reserves, security credit, and credit mkt. funds. Line 63 includes holdings by State and local govts, not shown separately' Private domestic nonfinancial sectors (line 42) consists of acquisition 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS (In billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 III IV I II HI IV Ir II' UI (A) Households1 1 Personal income............................... 416.8 442.6 465.5 496.0 535.1 500.3 507.5 518.1 527.6 541.9 552.8 564.6 573.5 585.2 1 2 Less: Personal taxes & nontaxes.. 52.4 57.4 60.9 59.4 66.0 59.1 60.9 64.9 66.6 65.7 66.7 69.5 73.6 77.4 2 3 Personal outlays................. 343.2 363.7 384.6 412. 1 443.4 418.4 420.0 430.3 438.6 447. 1 457.6 468.4 473.3 483.3 3 4 Equals: Personal saving................... 21.2 21.6 19.9 24.5 25.7 22,8 26.6 22.8 22.4 29.0 28.5 26.7 26.6 24.5 4 5 Plus: Credits from Govt, insure, 3.4 3.5 4.0 4.4 4.1 4.7 4.2 4. 1 4.4 4. 1 3.6 3.8 4.5 3.9 5 6 Other adjustments 3............ .5 .5 .5 .6 .9 .6 .7 .7 .6 .7 1.8 1.8 .6 .8 6 7 Net durables in consumpt... 2.9 6.7 8.9 11.3 14.6 12.7 9.5 14.9 13.4 14.8 15.2 16.6 12.6 14,8 7 8 Purchases..................... 44.2 49.5 53.9 59.4 66. 1 61.1 58.8 65. 1 64.4 66.7 68.0 70.3 67. 1 70.2 8 9 Less: Cap. consumpt...... 41.3 42.9 45.0 48,0 51.5 48.4 49.3 50,2 51.0 51.9 52.8 53.7 54.5 55.4 9 10 Equals: Net saving.......................... 27.9 32.3 33,3 40.8 45,3 40.8 41.0 42.5 40,8 48.6 49.1 48.8 44.2 44.0 10 11 Plus: Capital consumpt.4............ 47.8 49.8 52.4 56.0 59.9 56.4 57.4 58.4 59.4 60.4 61.4 62.4 63.4 64.4 11 12 Equals: Gross saving....................... 75.7 82.0 85.8 96.8 105,1 97.2 98.5 100.9 100.1 109.0 110.5 111.2 107.6 108.4 12 13 Gross investment (14+18)c............. 75.8 83.5 87.2 99.2 107.8 99.3 107.4 99.7 106.3 112.4 112.8 115.8 110.5 114.9 13 14 Capital expend, (net of sales).... 64.7 71.5 76.3 82.6 89.7 83.9 82.1 88.1 87.6 90.3 93.0 95.0 91.5 94.4 14 15 Residential construction........... 17.6 18.7 19.0 19.6 19.5 19.2 19.5 18.8 19,0 19.6 20.7 19.9 19.9 19.8 15 16 Consumer durable goods.......... 44.2 49.5 53.9 59.4 66.1 61.1 58.8 65. 1 64.4 66.7 68.0 70.3 67,1 70.2 16 17 Plant and equip, (nonprofit). .. 3.0 3.2 3.4 3.7 4.2 3.6 3.8 4.1 4.2 4.0 4.3 4.7 4.5 4.3 17 18 Net finan. investment (19—37)c........ 11.1 12.1 10.9 16.7 18.1 15.4 25.2 11.6 18.7 22.1 19.9 20.9 19.0 20.5 18 19 Net acquis, of finan. assetsc- 5.. .. 27.9 32.6 37.2 43.8 47.8 40.9 52.3 39.9 47.9 51.1 52.3 45.3 43.5 43.9 19 20 Demand dep. and currency.... .8 2,7 4.3 6.7 7.2 4.4 13.9 6.3 .9 6.1 15,4 -1.9 -2.7 -1.6 20 21 Savings accounts....................... 17.4 23.4 23.0 23.9 26.4 25.6 26.4 26.8 22.1 29.1 27.6 20.9 17.1 17.5 21 22 At commercial banks........... 6.2 10.3 7.9 8.2 13.3 8.5 11 .2 13,5 9.8 15.8 13.9 11. 3 13.0 12.4 22 23 At savings instutitions.......... 11.2 13.0 15.1 15.8 13.1 17.1 15.2 13.3 12.3 13.2 13.6 9.7 4.1 5.1 23 24 Life insurance reserves............. 3.4 3.7 4.2 4.3 4.8 4.2 4.2 4.6 4.8 4.9 4.8 4.7 4.7 4.8 24 25 Pension fund reserves............... 8.6 8.8 9.9 11.2 10.9 10.8 12,0 10.4 11.6 11.2 10.6 12.6 10.6 12.7 25 26 Cr. market instr.................... .5 -1.7 .4 3.3 2,7 1.9 1.0 -3.0 11.7 3.8 -1.9 13.9 18.3 15.2 26 27 U.S. Govt, securities............. -.7 3.5 1.7 2.6 -.2 2.0 .5 9.9 1.3 -1.3 11.2 10.8 8.5 27 28 Savings bonds................... .8 .4 1.2 .9 .6 .8 1.0 .8 .4 .5 .8 .3 .7 . 3 28 29 Short-term mkt.................. -.1 .4 2.8 -1.8 3.0 -4.1 -.7 5.5 5.1 2.0 -.5 .6 7.4 -1.1 29 30 Other direct....................... -1.2 — 1. 1 -.9 1.7 -1.2 2.4 1.3 -3.6 1.0 -1.3 -.7 7.8 -6.8 6.0 30 31 Nonguaranteed................. -.1 .3 .4 .9 . 1 .7 .3 -2.1 3.4 .1 -1.0 2.5 9.6 3.3 31 32 State and local oblig............. 1.3 .8 .7 2.5 2.2 2.8 1.6 .8 1.5 2.4 4.4 2.7 3.7 2.8 32 33 Corporate and fgn. bonds... - .4 -.7 — 1.0 -.8 -. 1 -.8 .3 -2.6 2.7 1.7 -2.1 1 .6 -.2 3.6 33 34 Corporate stock.................... .5 -1.8 -2.5 .1 -1.5 -.2 -3.0 -.8 -1.7 -.5 -2.9 .9 3.8 -.7 34 35 Mortgages.............................. — .2 * -.3 -.1 -.6 .4 * -.9 -.6 -l.l . 1 -2.5 .3 1.0 35 36 Net invest, in noncorp, bus c... -3.5 -4.9 -5.3 -6.6 -5.8 -7.3 -5.8 -6.1 -6.0 -5.7 -5.4 -6.5 -6.3 -5.4 36 37 Net increase in liabilities............... 16.9 20.5 26.3 27.2 29.7 25.4 27.1 28.3 29.1 28.9 32.4 24.4 24.5 23.4 37 38 Credit mkt. instruments........... 15,3 20.4 24. 1 27,1 28.5 25.7 27,3 28.0 28.2 28.5 29.4 23.5 23.8 24.6 38 39 1- to 4-family mtgs................ 11.2 12.9 14.8 16.0 15.8 15.8 15.3 15.5 15.2 15.9 16.7 14.8 14.0 13.3 39 40 Other mortgages................... .8 .9 .9 .9 1 . 1 .9 1 .0 1.0 l.l 1.1 l.l 1.2 1.2 1.2 40 41 Consumer credit................... 1.7 5.5 7.3 8.0 9.4 8.1 7.2 10.0 9.6 9.3 8.9 8.7 7.0 6.9 41 42 Bank loans n.e.c.................... .9 .5 .4 1.4 1.3 . 1 3.1 .6 1.4 1.3 1.9 -2.1 .1 1.0 42 43 Other loans 6......................... .7 .7 .6 .8 .8 .8 .7 .8 .9 .9 .7 1.0 1.5 2.1 43 44 Security credit........................... 1.3 -.1 2.0 -.2 .8 -.6 -.5 -.1 .7 .1 2.8 .4 .5 — 1.6 44 45 Discrepancy (12 — 13)....................... -.1 -1.5 -1.5 -2.5 -2.7 -2.2 -8.9 1.2 -6.2 -3.5 -2.3 -4.7 -2,9 -6.5 45 For numbered notes seo p. 157. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

152 FLOW OF FUNDS JANUARY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (in billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 III 1V I ir HI IV Ir If III (B) Nonfinancial business--Total i 1 Income before taxes 2.................,.. 95.7 102.4 106.9 114.6 125.7 115.8 1 15. 1 122,2 124.2 126.5 130.0 133.7 132.5 131.0 1 2 Gross saving,................................. 48.2 55.0 57.3 65.3 70.4 66.6 66. 1 69.9 69.5 70.6 71.5 73. 1 73.3 73.7 2 3 Gross Investment............................. 48.5 53.3 57.3 62.0 69.7 62.1 62.1 72.9 66.2 69.2 70.4 69.5 71.7 69.4 3 4 Capital expenditures................... HO. 4 60.4 63.8 68.9 82.1 68.8 7.3.2 80.0 79.6 82..3 86.5 89.5 9.3.7 90.5 4 5 Fixed investment........................... 48.4 54.4 57.9 64.2 73,0 65.2 65.8 70.5 71.9 73.5 76.1 80.5 81 .4 80.5 5 6 Business plant & equipment. .. 43.3 47.8 49.9 56.2 64.7 57.2 58.7 61.7 62.8 65.3 69.2 71.9 73.2 75.6 6 7 1-4 family residential const.3... .9 .7 1.0 .2 .8 1.0 .6 .9 1.7 -.2 .5 .3 -1.3 7 8 Other residential.................. 4.2 5.9 7.0 7.8 7.5 7. 1 7.2 8.2 8.2 6.5 7. 1 8.1 7. 8 6.3 8 9 Change in inventories 4......... 2.0 6.0 5.9 4.7 9. 1 3.6 7.4 9.5 7.7 8.8 10.4 9.0 12.3 9.9 9 10 Net financial investment. .................. — 1.9 -7.1 -6.5 -6.9 -12.4 -6.7 -11.1 -7.1 -13.4 -13.1 -16.1 -20.0 -22.0 -21.0 10 11 Net acquis, of finan. assets........... 18.4 17.5 19.8 15.8 26.3 21.7 10.8 33.0 21.8 22.6 27.9 25.6 24.8 14.3 11 12 Net increase in liabilities 7............ 20.4 24.6 26.4 22.7 38.8 28.4 21.9 40.0 35.2 35.7 44.0 45.7 46.8 35.3 12 13 Credit mkt. instruments. ...... 13.4 18.2 19.1 22.2 29.7 22.8 22.8 27.7 31.8 29. 1 30.0 35.5 43.3 28.1 13 14 Securities................................ 7. I 5.1 3.6 5.4 5.4 5.0 3.1 4.4 7.0 7.4 2.9 11.9 15.2 11.7 14 15 1-4 family mortgages............. .2 . 1 .4 - .3 .2 - .4 -. 1 .4 .3 .3 -.2 .3 -.2 -2.2 15 16 Other mortgages............. 4.3 7,0 8.4 9.0 8.4 9.9 9.5 7.7 8.7 8.7 8.4 9.0 8.5 7.2 16 17 Bank loans n.e.c..................... 1.3 4.3 5.0 5. 1 12.3 5.0 8.3 13.5 II .0 9.9 14.8 9.9 15.1 8.5 17 18 Other loans 7........................ .6 1 .7 1.8 3.0 3 4 3.2 2.0 1.7 4.9 2.8 4.2 4.5 4.7 2.8 18 [ 9 Trade debt................................. 7. 3 5.5 7.0 4.3 8.6 9.8 5.7 10.1 6,6 7.7 10.2 6. 8 9.5 4.5 19 20 Other liabilities.......................... -.3 .9 .2 -3,9 .5 -4.2 -6,7 2.2 -3.2 -1 .0 3.8 3.3 -6.0 2.8 20 21 Discrepancy....................................... -.3 1.6 . 1 3.3 .7 4.5 4.0 -3.1 3.3 1.4 l.l 3.6 1.6 4.2 21 (C) Farm and noncorporate nonfinancial business 5 1 Net income 2..................................... 55.6 57.5 58.4 59.5 63.7 59.6 59.9 61.2 63.8 65.2 66.5 66. 1 65.5 1 2 Gross saving 6................................... 12.6 13.1 13.5 14.4 15.0 14.6 14.8 14.9 15.0 15.1 15.2 15,3 15.5 15.7 2 3 Gross investment.............................. 12.6 13.1 13.5 14.4 15.0 14.6 14.8 14.9 15.0 15.1 15.2 15.3 15.5 15.7 3 4 Capital expenditures'1................ 1.3.4 15.7 17.1 16.6 20.2 16.0 16.6 19.8 19.8 19. 8 21.1 20.2 19. 7 16.5 4 5 Fixed investment6........................ 12.9 14.4 15.6 16.4 17.9 16.6 16.3 17.5 17,8 18.1 18.1 18.9 18,6 17.4 5 6 Change in inventories 4............... .5 1 .3 1.5 .2 2.3 - . 6 .2 2,3 2.0 I .7 3.0 I .3 1 .1 - .8 6 7 Net financial investmentc................. - .8 -2.6 -3.6 -2.2 -5.1 - 1.5 - (.8 -4.9 -4.8 -4.7 -5.9 -4.9 -4.2 - . 8 7 8 Net acquis, of finan. assets c.......... .5 .5 , 7 .8 .9 . 7 , 7 1.0 .8 . 7 1.1 .9 .8 1.0 8 9 Net increase in liabilities'1 7.......... 1.3 3.1 4.4 3.1 6.0 2.2 2.5 5.9 5.6 5.5 7.1 5. 7 5.0 1.8 9 10 Credit mkt. instruments............ 4.1 7.0 8.6 8.6 10.4 8.6 7.9 10.4 10.6 9.7 10.9 12.4 10.9 5.9 10 11 Mortgages............................. 2.6 4.2 5.2 5.4 5 4 5 8 5 8 5. 1 5.5 5 6 5 3 5.8 5.2 3.6 11 12 Bank loans n.e.c..................... 1.2 1.8 2.1 1 .5 3.0 .9 1.3 3.6 2.2 2.4 3.5 4.1 3.2 1.0 12 13 Other loans 7,8...................... .3 1.0 1 . 3 1.7 2.1 1 .9 .8 1 .7 2.9 1 .7 2.1 2.6 2.5 1.2 13 14 Trade debt, net.......................... .7 1.0 1 .1 1 .0 1.4 .9 .4 1.5 1.0 1.4 1 .5 - .2 .4 1.3 14 15 Proprietors’ net investment6 9,, -3.5 -4.9 -5.3 -6.6 -5.8 -7.3 -5.8 -6.1 -6.0 -5.7 -5.4 -6.5 -6.3 -5.4 15 (D) Corporate nonfinancial business 1 ® 1 Profits 4" IVA..................................... 40,2 44.9 48.6 55.1 62.0 56.2 55.2 61.0 60.4 6t .9 64.8 67.2 66.5 65.5 1 2 Profits tax accruals.......................... 19.7 20.8 22.8 24.2 27.4 24. 5 24.4 27.1 27.0 27. 1 28.5 30.1 29.9 29.5 2 3 Net dividend payments it............... 10.3 1 1.4 12.7 12.8 1 4.4 12. 8 13.2 13.0 13.7 14.9 16.0 15.9 16.0 16.0 3 4 Net savings+lVA (1-2-3)................. 10.1 12.6 13.1 18.1 20,2 18,9 17.6 20.9 19.7 19.9 20.3 21.2 20.5 20,0 4 5 Capital consumption....................... 25.4 29.2 30. 8 32.8 35.1 33,1 33.7 34. 1 34.8 35.6 36.1 36.6 37.3 37.9 5 6 Current surp.= gross saving (4+5).. 35.6 41.8 43.9 50.8 55.3 52.0 51.3 55,0 54.5 55.5 56.4 57.7 57.8 57.9 6 7 Gross investment6............................. 35.9 40.2 43.8 47.5 54.6 47.5 47.4 58.0 51 .2 54.1 55,2 54.2 56.2 73.9 7 8 Capital expenditures':................ 37.0 44.7 46.7 52.2 61.9 52.7 56.7 60.2 59.8 62.5 65.4 69.3 74.0 53.7 8 9 Fixed investment”......................... 35.5 40.0 42,3 47.8 55.1 48.6 49.5 53.0 54.1 55.5 58.0 61 .6 62,7 63.2 9 10 Plant and equipment6............... 33.2 37.0 38.6 44. 1 51.3 44 9 46.2 48. 8 49.8 51.6 54.8 57.6 58.9 60.9 10 11 Residential construction........... 2.2 3.0 3.7 3.7 3.9 3.7 3.3 4.2 4. 3 3.8 3.2 4.0 3.8 2.2 11 12 Change in inventories 4............... 1.5 4.7 4 3 4.4 6.8 4.2 7.2 7.2 5.6 7 0 7.4 7.7 11.3 10.8 12 13 Net financial investment............... -1.1 -4. 5 -2.9 -4.7 -7.3 -5.2 -9.3 -2.1 -8.6 -8.3 -10.2 -15.1 -17.8 -20.2 13 14 Net acquis, of finan. assets 12....... 18.0 16.9 19.1 14.9 25.4 21.0 10.1 32.0 21.1 21.9 26.8 24.8 24.0 13.3 14 1 5 Liquid assets.............................. 3.5 4.1 4.3 . 7 6 2.4 -8.5 4.4 - 1 7 ,4 - 7 8.0 -2.1 -3.1 15 16 Demand dep. and curr.......... 1.7 -.9 —. 8 -2.5 -1.9 t .0 -8.7 .6 -3.1 -4.5 - .6 2.3 - 1 .2 -1.2 16 17 Time deposits......................... 1.9 3.7 3.9 3.2 3 9 1 .5 3.4 6.4 5.7 2.5 9 4. 1 1.7 -3.9 17 18 U.S. Govt, securities............ -.2 . 5 5 -1.4 -2. 1 -2.6 -4.6 -2.1 -5.0 . | -1.3 - .9 -3.0 -1.5 18 19 Open-market paper............... . 1 . 9 7 1 .5 .7 2.5 . 8 - .5 . 8 2.3 .3 2. 5 .4 3.5 19 20 State and local oblig................. -.2 - . 4 9 .2 .7 3 .6 .7 8 8 . 8 . 8 . 7 20 21 Consumer credit............. , 1 .9 7 1.0 1 2 9 1 .1 J 7 .6 1.0 1 3 2.5 1.0 . 8 21 22 Trade credit......................... 10.0 8.2 8 5 9.1 13.7 12.3 10 2 16.2 11 3 10.3 16.8 10.7 16.8 9.0 22 23 Other financial assets o............ 4.6 4. 1 4. 8 4.0 9. 3 5.2 7.1 9.0 10.1 9.4 8.6 2.8 7.6 5.8 23 24 Net increase in liabilities............... 19.1 21.5 22.0 19. 7 32.7 26.2 19.4 34. i 29.6 30.3 37.0 39.9 41.8 33.5 24 25 Credit mkt, instruments............ 9.4 11.2 10.5 13,6 19 2 14.1 15.0 17.3 21.2 19 4 19.2 23.1 32.4 22.2 25 26 Corporate bonds.................... 4.6 4.6 3 9 4.0 5 4 1.9 4. 6 4.4 5.3 7.9 3 9 12.4 9. 3 10.8 26 27 Corporate stock.................... 2.5 .6 —. 3 1 4 1 . 1 -1.5 1.6 -. 5 -1.0 - . 5 5.9 .9 27 28 Mortgages.............................. 1.8 2.9 3 5 3 3 3 2 1.7 3 6 3.0 3.4 3.4 2.9 3.4 3.1 1.5 28 29 Bank loans n.e.c..................... . [ 2.5 2 9 3 6 9 3 4.1 7.0 9.8 8.8 7.4 11.3 5.8 11.8 7.4 29 30 Other loans14......................... . 3 . 7 5 1 3 1 3 1.3 1.2 2.0 1.2 2.1 2.0 2 3 1.6 30 31 Profits tax liability is,,,,........ 1.2 1 . 1 1 5 ,9 2.0 3 7 3.3 -1.9 1.9 4.7 3.1 -7.0 2.7 31 32 Trade debt................................. 4.5 6.0 3 4 7.3 8.9 5.3 8.6 5.6 6.3 8.6 7.1 9.2 3.1 32 33 Other liabilities.......................... 1.9 4.7 4.0 1 8 4 2 2.8 -1.5 5 0 4.7 2 8 4 5 6.7 7 3 5.5 33 34 Discrepancy”.................................. -.3 1.6 . | 3.3 .7 4.5 4 0 -3.1 1.3 1.4 1.1 3.6 1.6 4.2 34 35 Memo: Net trade credit................... 3.4 3.7 2.5 5 7 6 4 1 4 4.9 7 7 5.7 4. 1 8,2 3.6 7.6 5.9 35 36 Profits tax payments * 5...................... 18.2 20.0 20.8 23.5 25.8 23.1 23.4 23.7 28. 1 25.9 25.3 26.8 40.0 28.0 36 For numbered notes see p. 157. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FLOW OF FUNDS 153 4. SECTOR STATEMENTS OE SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 111 IV 1 11 III LV 1 r IL r LIL (E) U.S. Government 1 1 Tax receipts (net of refunds)............ 80.0 85.9 91.4 91.2 100.2 91.4 92.9 99.6 100.4 99.0 101 .7 104,3 108.7 111.7 1 2 Individual income......................... 44.7 48.6 51.5 48.6 54,2 48.1 49.6 53,4 54.9 53.9 54.7 57.1 60.7 63.9 7 3 Corp, profits tax accruals............. 21.8 22.7 24.6 26.5 29.1 26.8 26.7 28.7 28,7 28.9 30.3 31.9 31.9 31.6 3 4 Other............................................. 13.6 14.6 15.3 16.2 16.8 16.6 16.5 17.5 16.8 16.3 16.7 15.2 16.1 16.2 4 Social insurance programs 2 5 Premiums received.................... 16.2 18.5 21.0 21.7 22.4 21.8 22.1 22.2 22.3 22.4 22.8 29.3 29.8 31,1 5 6 Benefits paid.................................. 16.8 17.4 18.2 18.7 20.3 18.7 18.8 19.2 18.9 22.6 20.7 21.5 21.4 23.1 6 Life insur. & retirement programs 3 7 Premiums received....................... 2.0 2.1 2. 1 2.2 2. 3 2.2 2.3 2.3 2.3 2.4 2.4 2.4 2.4 2.4 7 8 Benefits paid................................. 3.0 2.9 3.2 3.2 3.3 3.0 3.0 3.9 3.1 3. 1 3.2 3.8 3.8 4.0 8 9 Net grants and donations paid 4.... 18.3 19.4 20.5 22.8 24.1 23.3 23.4 23.5 24.3 24.2 24.5 27,2 28.5 30.0 9 10 Net interest paid............................... 6.6 7.2 7.7 8.3 8.7 8.4 8.4 8.6 8.7 8.8 8.8 9.3 9.5 9.7 10 1 I Net purchases of goods & services.. 57.4 63.4 64.2 65.2 66.8 65. 1 64.1 64.4 65,6 67.5 69,8 71.9 74.0 78.3 11 12 Net surplus........................................ -3.8 -3.8 .7 -3.0 1 .6 -3.0 -.4 4.5 4.4 -2.5 -.2 2.3 3.8 .2 12 13 Credits imputed to consumers 5.... 1 .0 1.1 1.3 1.4 1.4 1.5 1.3 1.3 1.8 1 .6 1 .0 1 .1 1.8 1.2 13 14 Gross saving...................................... -4.8 -4.8 -.6 -4.3 . 2 -4.4 -1.6 3.2 2.7 -4.0 -1. 1 1.2 2. 1 -1.0 14 15 Net finan. investment (16 — 23)......... -5.3 -4.6 -1.3 -2.9 -1.3 -3.7 -1.2 2.0 .7 -6.4 -1.4 -.8 3.0 -5.8 15 16 Net acquis, of ft nan. assets............ 3.9 4.7 4.7 5.2 4.3 7.2 5.0 11.8 4.5 -8.0 9.0 13.8 10.2 -.4 16 17 Demand deposits & currency... . 1 1.0 -.4 .6 -1.4 2.7 -1.1 5.9 -2.5 -11.4 2.3 — 2.7 10.6 -9.7 17 18 Credit market instruments........ 2.6 3.3 2.7 3.8 4.7 3.2 3.6 5.3 6.4 3.1 3.9 11.3 9.9 6.3 18 19 Mortgages.............................. .6 .3 -1.0 .3 1 .0 . 1 -.2 .7 1.0 .7 1.5 4.6 4.1 3.1 19 20 Other loans............................. 2.0 3.0 3.7 3.5 3.7 3.1 3.7 4.7 5.4 2.4 2.4 6.7 5.8 3.3 20 21 Excess of tax accruals over receipts................................... .7 .8 1.8 1.0 1.7 1.6 1.8 -1.6 1.0 2.9 2.9 -10.4 1.6 21 22 Other financial assets *............. .5 - .5 .6 -.3 * -.5 .9 -1.3 2.3 -.7 -.2 2.3 .2 1.4 22 23 Net increase in liabilities............... 9.2 9.3 6.0 8.0 5.6 10.9 6. J 9.8 3.9 -1.6 10.3 14.6 7.2 5.4 23 24 Life insurance and retirement reserves.................................. 1.0 1 .1 1.3 1.4 1.4 1.5 1.3 1.3 1.8 1.6 1.0 1 . 1 1.8 1.2 24 25 U.S. Govt, securities 2.............. 7.7 7.9 5.0 7.0 3.5 8.3 4.4 9.0 1.4 -4.5 8.2 14.4 3.5 2.8 25 26 Svgs. bonds »......................... .8 .4 1.2 .9 .6 .8 1 .0 .8 .4 .5 .8 .3 .7 .3 26 27 Short-term marketable L... 8.9 .6 1.4 4.0 3.5 4.4 8.6 5.5 3.6 -3.5 8.3 -1.2 -12.0 6.1 27 28 Other direct............................ -2.9 4.8 1. 1 .9 -2.9 2.6 -8.3 2.3 -7.2 -5.3 -1.4 10.0 -2.7 -2.7 28 29 Agency issues......................... .7 1.6 1.5 .4 1 .9 .5 .6 .5 4.8 1.9 .5 3.8 10.3 1.2 29 30 Loan participations............... .3 .5 —. 2 .8 .4 ♦ 2.5 -,3 1 .9 1.4 7.1 -2.1 30 31 Other liabilities......................... .5 .3 -.3 -.4 .6 1.1 .6 -.5 ,7 1.3 1 . 1 -.9 1.9 1.4 31 32 Discrepancy (14—15)....................... .5 -.2 .7 -1.5 1.5 -.7 -.4 1.2 2.0 2.4 .3 2.0 -.9 4.9 32 33 Memo: Corp, tax receipts, net........ 21.0 21.9 22.8 25.3 28.1 25.0 25,1 26.9 30,3 27.9 27.4 29.0 42.4 30,0 33 (F) State and local governments to 1 43.2 47.1 50.5 55.0 59.7 55.9 56.8 58. 1 59. 1 60,3 61. J 62.4 63.8 65.7 1 2 Social ins. and grants rec................. 10.4 11.5 12.9 14.5 15.6 14.9 15.2 15.4 15.5 15.6 16. 1 17,7 19.4 20.2 2 3 Purch. of goods and services........... 50.2 53.7 58.2 63.7 69.4 64.5 65.3 67.3 68.7 70.2 71.4 73,1 75.0 77,2 3 4 Net interest & transfers paid 1 1. , . . 3.9 3.9 4.0 4.2 4.3 4.1 4.2 4.3 4.2 4.2 4.3 4.6 4.7 4.9 4 5 Net surplus.................................. -.5 .9 1.2 1 .7 1.6 2.2 2.5 1.9 1.7 1.5 1.5 2.4 3.5 3.8 5 6 Less retirement cr. to hsholds.......... 2.4 2.4 2.7 3.1 2.6 3.2 3.0 2,8 2.6 2.5 2.6 2.6 2.6 2.7 6 7 Equals: Gross saving....................... -2.9 -1.4 -1.5 -1.4 -1.0 -1.0 -.5 -.9 -.9 -1.0 -1.1 - .2 .9 1.1 7 8 Net financial investment (9 — 17).... -3.3 -2.5 -2.1 -2.5 -1.5 -2.6 -1.4 -1.5 -1.6 -1.4 -1.7 -.6 .5 .6 8 9 Net acquis, of 6 nan. assets............ 4.4 5.6 7.7 6.9 9.0 8.3 7.9 7.8 10.3 8.3 9.4 8.0 10.9 8.4 9 10 Liquid assets.............................. 1.1 2.5 4.1 2.6 4.5 4.0 2.9 2.8 6.7 4.7 3.8 3.2 4.8 2.9 10 1 1 Demand deposits and cur.... .3 .9 2.4 1.4 1.0 2.5 3.3 -4.5 4.6 3.2 .7 .8 5.5 -.1 11 12 Time deposits.................. .9 1.0 1.6 1.7 2.4 2.1 2.7 1.9 1.1 3.1 3.3 -.5 2.1 1.9 12 13 Short-term U.S. Govt. see... -.1 .6 . 1 -.5 1.1 -.6 -3.0 5.4 .9 -1.6 -.2 2.8 -2.8 1.2 13 14 Other U.S. Govt, securities... . .5 .6 .6 1.0 1.3 1.0 1.8 1 .7 1.4 2.2 . 1 1.4 . 1 14 15 State and local obligations....... -.2 -.7 -.7 -.6 -.6 -.6 -.6 -.6 -.8 -.6 -.5 -.4 -.4 -.4 15 16 Other 12..................................... 2.9 3,1 3.5 3.7 3.7 3.9 3.8 3.5 2.7 4.3 4.2 4.9 4.8 5.9 16 17 Net increase in liabilities.............. 7.7 8.1 9.8 9.4 10.5 10.9 9.3 9.3 11.9 9.8 11.1 8.6 10.4 7.9 17 18 Credit market borrowing.......... 5.2 5.6 7.0 6.2 7.8 7.6 6.3 6.4 9.2 7.2 8.4 5.9 7.7 5.1 18 19 State and local obligations... 4.9 5.0 6.7 5.9 7.4 7.1 5.8 6.1 8.6 6.8 8.1 5.5 7.2 4.8 19 20 Short-term......................... .4 .4 .5 .7 1.3 .8 .2 .4 1.4 2,4 1 .0 .5 .6 -.2 20 21 Other................................... 4.5 4.6 6.2 5.1 6.1 6.3 5.6 5.7 7.2 4,4 7.1 5.0 6.6 5.0 21 22 U.S. Govt, loans.................... .6 .3 .4 .4 ,5 .5 .4 .6 ,4 ,3 .4 .4 .3 22 23 Employee retirement reserves.. 2.4 2.4 2.7 3.1 2.6 3.2 3.0 2.8 2.6 2,5 2.6 2.6 2.6 2.7 23 24 Trade debt................................ .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 . 1 . 1 .1 24 25 Discrepancy...................................... .4 1.0 .6 1.1 .6 1.6 .9 .6 .7 .4 .6 .4 .4 .6 25 26 Memo: Total U.S. Govt, sec........... .4 1.2 .7 .5 2.5 .4 -1.2 7.1 2.3 — 1.6 2.0 3.0 -1.4 1.3 26 For numbered notes see p. 157. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

154 FLOW OF FUNDS JANUARY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (in billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 HI IV 1 11 in IV Ir iu III (G) Monetary authorities1 1 Current surplus................................. . 1 . 1 .1 -.5 * - .5 -.5 « * ♦ • * * .2 1 2 Net acquis, of financial assets.......... 1.4 1.7 2.2 3.4 2.3 2.8 5.2 2.7 2.5 4.4 -.6 5.8 4.1 5.2 2 3 Gold and foreign exchange 2........ -.8 -.8 -.4 -1.3 .2 .2 -3.0 -2.2 1.3 -1.4 -2.1 .2 .4 3 4 Treasury currency......................... .2 -.2 .2 -. 1 -.6 1 . 1 .3 .4 .7 1.0 .5 4 5 Credit mkt. instruments................ 1.5 2..0 2.9 3.4 3.8 3.5 3.8 6.0 3.8 4.3 1.2 3.0 4.7 4.0 5 6 U.S. Govt, securities................. 1.5 1.9 2,8 3.5 3.7 3.5 3.7 5.9 4.2 4.3 .5 3.3 4.3 4.7 6 7 Short-term marketable.......... -l.l 2.0 4.9 2.1 3.7 7.1 3.5 12.4 6.2 -.3 -3.6 4.9 -1.8 5.9 7 8 Other....................................... 2.6 -. 1 -2.2 1.3 . 1 -3.6 .2 -6.5 -2.0 4.6 4.1 -1.6 6.0 -1.2 8 9 F.R,. Boat....................................... .5 .6 -.3 -.4 -.6 .6 -.8 -.2 1.0 -1.5 3.0 -1.2 9 10 F.R, loans to domestic banks. .. . . 1 -. 1 * . 1 - . 1 - .3 1 . 1 .5 1.0 -2.5 .8 1.2 -1.8 1.6 10 1 1 Net increase in liabilities................... 1.3 1.6 2.1 3.8 2.2 3,3 5.7 2.6 2.5 4.4 -.6 5.8 4.0 5.1 1 1 12 Member bank reserves.................. .3 . 1 - .4 1.0 .4 1.0 3.1 . 1 ,9 .5 1.2 -1.1 4.5 12 13 Vault cash of coml. banks J.......... .3 .7 .6 -.4 .3 .3 -2.7 2. 1 .5 -.6 -.8 .4 1.7 -.4 13 Demand deposits and currency... 14 Duc to U.S. Govt...................... . 1 .3 7 * .4 .2 - .3 1.2 -1.2 -.4 2.0 -.2 14 15 Due to rest of the world4........ . 1 ♦ 1 . 1 - . 1 -.1 .4 -.3 . I - .2 1.3 - .5 15 16 Currency outside banks............ .7 .8 1.7 2.4 2.1 1.7 3.6 .7 1.8 4.0 2.0 3.5 1.5 2.0 16 17 Other............................................. - . 1 * * .6 -.5 .3 .8 -.3 -.4 -.3 -1.0 - .2 * - .4 17 (H) Commercial banks5 I Current surplus................................. 1.3 1.5 1.7 7 0 2. 1 1 9 2.2 2.0 1.9 2.0 2.4 2.3 2 4 2 3 1 2 Net acquisition of financial assets . .. 17.1 20.7 20.0 23.4 30.2 25.8 28.5 34.8 24.3 16.7 45.2 18.6 31.6 3.3 2 3 Member bank reserves6................ .3 . 1 4 1 0 4 1 0 3.1 .9 ♦ 5 1 2 -l.l 4 5 3 4 Vault cash...................................... . 3 ,7 4 3 . 3 — 2.7 2.1 . 5 —. 6 — .8 .4 1.7 -. 4 4 5 Total loans and investments........ 15 8 19 5 19 4 22.2 29 P 22.9 28.0 31.3 22 18.3 43.9 15.8 28. 1 4.0 5 6 Credit market instruments........ 14.6 18 4 18 8 21.8 29.0 23 2 28.9 28.9 21.5 27.0 38.5 15.5 28.4 8. 1 6 7 U.S. Govt, securities 7............ 5.8 1.4 -2.6 ,4 -2.3 3.9 1.7 -2.6 - 10.2 -1.7 5.3 -4 4 —, 8 -7.7 7 g Short-term marketable. . . . 9.3 -5.2 -3.5 -1.7 4.7 8.5 -10.6 -5.7 2.4 7.2 -12.5 -6.0 -.2 8 9 Other direct........................ — 4. 1 5.2 5 — 4. 1 — 1.4 -1.2 — 9.3 7.9 — 5.3 -6.1 -2.3 7.9 -1.2 -3.8 9 IQ Agency issues..................... . 4 .9 . 5 1.2 . 5 .8 1. 1 1.9 1.7 -l.l 2.7 -1.7 10 if Loan participations............ . 3 . 5 — .2, .6 - .4 * 1.6 * -. 3 . 1 -1.3 1.3 3.7 -2.0 ll 12 Other securities & mortgages. 4.2 8.3 10. 1 8.1 10.5 8.8 8.8 9.6 12. 1 10.5 9.9 8.2 7.5 7.1 12 13 State and local oblig.......... 2.8 4.4 5.2 3.5 5.0 4.4 4.3 4.9 6.4 4.2 4.5 2.9 2,2 2.1 13 14 Corporate bonds........... — .2 * —. 1 —. 1 —. 1 . 1 . 1 - .2 — .4 .14 15 I- to 4-family mortgages... .8 2.0 2.7 2.3 3.1 2.0 2.2 2.5 2.8 3.7 3.4 2.6 2.9 2.7 15 16 Other mortgages................ .8 1.9 2 2 2.2 2.5 2.5 2.4 2.1 2.8 2.7 2.4 2.8 2.4 2.3 16 17 Other credit exc. security.. ... 4.6 8.7 1 1.3 13.3 20.7 10.4 18.4 21.9 19.6 18.2 23.2 H.7 21.8 8.7 17 13 Consumer credit................ .9 2.3 3.5 3.8 4.7 4. 1 3.6 4.3 4.9 5. 1 4.6 3.6 3. 1 3.4 18 19 Hank loans n.e.c................. 3.0 6.2 7.6 8.7 16.4 5.4 13,6 19.3 13.9 12.9 19.4 6.7 19.4 3.1 19 2o Other loans8....................... . 8 ,2 .2 .8 - .4 1 .0 1,2 -1.6 .7 . 1 - .8 1.4 - ,7 2.3 20 2 j Security credit............. ............ 1.1 1.1 .6 . 5 . 1 -.3 - ,9 2.4 1.2 -8.7 5.5 .3 - .3 -4.1 21 27 Mise, assets................................... .7 . 5 .4 .6 . 5 1.6 , I 1.3 .2 -1.1 1. 5 1.3 2.9 -4.8 22 73 Net increase in liabilities.................. 16.1 19.8 19.3 22.0 28.8 24.7 26.8 33.6 22.5 15.8 43.2 17.4 29.3 -.1 23 24 Demand deposits, net................... 4.8 3.7 3.8 4.8 5.6 8.0 5.9 7.0 . 1 -5.4 20.5 5.8 -12.7 24 25 U.S. Govt.9............................... 1.2 -.6 - 1.0 1.7 -1.9 5.0 -.6 -11.6 3.3 -3.5 7.7 -7.1 25 26 Foreign^................................... .7 . | .4 , 1 1.0 .7 - .4 - .6 .6 1.0 - 1.4 .3 -1.9 26 27 Other, net11............................... 4.1 2.3 4.3 4.4 6.4 5.3 7.1 2.4 1.3 5.6 16.3 4.9 -2.2 -3.7 27 28 Time deposits................................ 9.4 15.6 14.3 14.5 20.0 13.1 19.0 22.7 17.6 21.4 18.4 14.7 18.7 11.0 28 29 F R. float....................................... . 5 .6 -.3 -.4 -.6 .6 -.8 -.2 1.0 -1.5 3.0 -1.2 29 3(1 Borrowing at F.R. Banks............. . 1 -, | * . 1 —. 1 -.3 1.1 .5 1.0 -2.5 .8 1.2 -1.8 1.6 30 31 Other liabilities........................... 1.4 1.4 2.5 3.6 4.4 .2 4.2 4.1 1.3 4.9 -1.7 6.5 1.3 31 30 Security issues........................... .2 . I .3 ' .6 .8 .6 .4 .5 2.0 . 1 .4 . 1 .3 * 32 .4 .5 . 1 .3 .5 .1 .3 -.3 .8 .4 1.0 .1 -l.l 33 34 Memo: Total loans exc. mortgages.. 5.8 9.8 11.9 13.8 20.8 10.1 17.5 24.3 20.8 9.5 28.7 12.0 21.5 4.5 34 For numbered notes see p. 157. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FLOW OF FUNDS 155 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 MI IV 1 II III IV U III (I) Nonbank financial institutions1 1 Current surplus.................................. 2.0 2.2 1.7 1.6 1.5 1.6 1.4 1.6 1.9 1.8 .7 .7 2.1 2.0 I 2 Physical investment (Life ins.)........ .4 .3 .5 .5 .5 .5 .5 .5 .5 .4 .4 .4 .4 .4 2 3 Net acquis, of financial assets............ 28.2 32.6 37.0 37.0 37.7 36.8 36.0 38.3 41.3 29.9 41.3 38.4 26.3 21.8 3 4 Demand deposits and currency... 1.0 1.1 .2 .3 • .7 -.7 .5 .5 .9 1.5 -1.8 .6 .5 4 5 Time deposits (Mut. svgs. bks.)... . I . 1 .2 .2 -.2 -.2 .......... 5 6 Svgs. and loan shares (Cr. unions) .2 . 1 . 1 -.2 -.5 -.4 -.2 .2 - .4 -.5 -.3 6 7 Cr mkt. instr................................ 24.5 30.7 33.7 35.7 35.6 37.0 34.2 38.1 39.6 27.8 37. 1 38.8 24.7 21.5 7 8 U.S. Govt, securities................. .4 1.6 -.5 2.0 -.8 2.9 .6 2.2 -.8 -5.9 1.5 4.6 -5.0 1.0 8 9 State and local obligations....... 1.2 .9 .6 .2 .4 .1 .4 .7 -1.1 -.4 1.0 -.5 9 10 Corporate bonds....................... 3.8 3.8 4.4 4.4 5.4 3.6 4.6 5.8 5.3 5.1 5.6 8.5 3.8 3.5 10 11 Corporate stock........................ 4.0 4.2 3.4 3.7 5.3 4.0 4.6 4.1 6.0 4.3 7.0 4.0 5.5 5.0 II 12 1- to 4-family mortgages.......... 10.5 11.0 14.1 13.0 12.7 12.6 12.7 13.8 12.8 12.8 11.5 11.6 6.4 3. 1 12 13 Other mortgages....................... 3.8 5.7 6.9 7.3 6.4 8.0 7.9 6.1 6.3 6.5 6.6 6.2 6.0 5.3 13 14 Consumer credit....................... .5 1.9 2.8 2.8 3. 1 2.8 2.2 3.5 3.7 2.9 2.5 2.2 2.6 2.3 14 15 Other loans................................ .2 1.6 2.1 2.4 3.4 2.7 1.5 2.2 5.5 2.3 3.6 2.1 4.4 1.8 15 16 Security credit......... 1.1 - .3 1.9 -.5 .2 -.9 -.4 -.8 .4 -.3 1 .6 .7 .3 -2.1 16 17 Trade credit.................................. .1 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 17 18 Miscellaneous assets..................... 1.3 .9 1.1 1.2 1.2 1.2 1.3 1. 1 1.0 1.7 .9 1.0 1. 1 2.0 18 19 Net increase in liabilities........... 26.6 30.5 35.5 36.3 36.3 35.1 35.4 35.9 39.7 29.1 40.7 39.3 26.7 19.9 19 20 Time and savings deposits............ 11.3 13. 1 15.2 15.9 12.9 17.1 15.4 12.8 11.9 13.0 13.8 9.3 3.6 4.7 20 21 Ins. and pension reserves.............. 8.6 9.0 10.1 11.1 11.6 10.3 11.9 10.9 12.0 12.0 11.7 13.5 10.8 13.5 21 22 Cr. mkt. instr.2............................. 3.4 5.7 7.1 6. 1 9.0 5.2 5.4 8.0 10.5 9.4 8.2 11.8 9.2 2.9 22 23 Finance company bonds.......... .5 .3 1.4 2.1 1.9 2.1 1.7 1.6 1.8 1.5 2.7 1.6 .3 1.9 23 24 Investment company shares.... 1.8 1.9 1.2 1.8 3.1 2.2 2.6 2.6 2.3 3.5 4.2 5.3 3.3 3.8 24 25 Mtg. loans in process................ .4 .4 .5 -.3 -.1 -.3 — .3 .2 - .2 -.2 .4 -1.1 -1.8 25 26 Bank loans n.e.c........................ . 1 1.0 1.7 .5 2.4 -1.5 . 1 2.3 2.6 1.3 - .4 3.8 -6.4 26 27 Other loans............................... .5 2.0 2.3 2.0 1.7 2.7 1.3 1.5 3.7 3.3 -1.9 5.0 3.1 5.4 27 28 Finance co. paper................. - . 1 1.2 1.0 1.5 1.0 2.8 .8 2.2 2.8 -1.1 2.2 .7 4.3 28 29 FHLB loans......................... .7 .8 1.3 .5 .7 - . 1 .5 1.5 1.5 .5 - .8 2.8 2.3 1.1 29 30 Security credit.............................. .9 .9 .5 -.2 -.4 -1.3 1.3 2.3 -8.7 4.2 1.1 .3 -4.8 30 31 Taxes payable................................ -. 1 . 1 . 1 - .3 . 1 .3 . 1 - . 3 - . 1 .2 31 32 Miscellaneous liabilities................ 2.4 1.7 2.5 3.1 3.0 3.0 4.0 3 1 2 8 3.2 2.7 3.9 2 9 3.3 32 33 Discrepancy....................................... * -.2 -.3 .4 -.3 -.6 .3 -1.2 -.2 .6 -.4 1.1 2.0 -.4 33 (1.1) Savings and loan associations 1 Net acquis, of financial assets.......... 10.7 11.5 14.0 11.8 10.1 12.0 11.5 10.3 10.6 10.2 9.3 9.3 4.2 1.9 1 2 Demand deposits and currency 5. .4 .6 . 1 ♦ -.2 -.2 -.2 .1 .5 1 -.6 -.3 -1.0 2 3 Cr. mkt. instr. $................ 9.4 10.3 13.3 11.1 9.4 11.3 10.8 10.C 9.9 8.7 9.2 9.6 3.9 1.4 3 4 U.S. Govt, securities.......... .6 .4 1.0 .6 .5 .6 .8 1.0 . 5 - .2 .6 1.3 -1.3 .8 4 5 1 - to 4-family mortgages.......... 7.0 7.4 9.3 8.0 7.6 7.5 7.3 7.9 7.6 7.4 7.3 7.4 4.2 . 3 5 6 Other mortgages............... 1.7 2.6 2.9 2.4 1.3 3.0 2.6 1.1 1.6 1 4 1.1 .9 .9 .2 6 7 Mise, financial transactions...... .9 .6 .5 .7 .6 .9 .8 . 5 .6 1 .1 .3 .3 .7 1.6 7 8 Net increase in liabilities........... 9.9 10.7 13.3 11 1 9.3 11.3 10.8 9 3 9.7 9.5 8.5 8.6 3 5 1.4 8 9 Savings shares.......................... 8.7 9.4 li.l 10.6 8.4 11.5 10.1 8.2 7.6 8.7 9.1 5.7 1.7 1.2 9 10 Mtg. loans in process................... .4 .4 .5 -.3 -. 1 -.3 -.3 .2 -.2 — .2 .4 -1.1 -1.8 10 11 Borrowing from FHLB................ . 8 I." 5 5 1.5 1 5 5 8 2 8 2 ' 1.1 11 12 Memo: FHLB loans less deposits... .4 .8 1.4 .5 .8 -.3 .3 1.7 1.7 .4 -.5 3.2 2.3 1.3 12 (1.2) Mutual savings banks 1 Net acquis, of financial assets 4 2.3 3.3 3.6 4.5 4.0 5.3 4.1 4.1 4.0 4.3 3.6 2.7 1.6 3.6 1 2 U.S. Govt, securities........... -.1 -.2 -.3 .4 - .4 - .6 . 1 - .6 - .9 - .9 .7 2 3 Corporate bonds.................. -. 1 - . 1 -.3 -.2 -.T -. 1 -.5 -.1 -. 1 - .3 .2 -. 1 - .5 3 4 1- to 4-family mortgages... 1.7 2.1 2.6 2.7 2.7 3.0 2.9 2.6 2.5 2.8 2.8 1.8 1.1 1.9 4 5 Other mortgages............ .6 1.0 1.3 1.7 1.4 1.8 1.8 1.3 1.3 1.5 1.5 1.2 .9 1.1 5 6 Savings deposits...................... 1.9 3.1 3.3 4.2 3.6 4.5 4.2 4.0 3.4 3.5 3.6 2.8 1.0 3.0 6 (1.3) Life insurance companies 1 Current surplus................................. 1.0 1.1 1.1 1.1 1.2 1.1 1.1 1.2 1.2 1.2 1.2 1.2 1.2 1.3 1 2 Net acquis, of financial assets 4....... 6.1 6.8 7.0 7.8 8.6 7.8 8.3 8.8 8.4 8.3 8.9 8.4 7.9 9.5 2 3 Cr. mkt. instr................................ 5.7 6.5 6.7 7.4 8.1 7.5 7.8 8.4 8.0 8.0 8. 1 9.1 7.6 8.9 3 4 U.S. Govt, securities................. -.4 . 1 -.4 -.3 - .4 -.2 - .6 .2 -.7 -.9 -.4 -.2 - .7 -.9 4 5 State and local obligations..... .3 . 1 -.2 -.1 -.3 .1 -.2 -.2 -.2 -.4 -.3 -.7 - .7 5 6 Corporate bonds....................... 2.5 2.5 2.8 2.3 2.7 2.0 2.1 2.1 2.1 3.2 3.2 4.8 1.7 2.6 6 7 Corporate stock........................ .5 .4 .2 .5 .8 .6 .6 .6 .6 .8 1.2 . 1 .1 .2 7 8 1- to 4-family mortgages.......... .9 .6 .9 1.4 1.2 1.4 1.6 1.7 1.0 1.0 1.0 1.5 1.3 1.1 8 9 Other mortgages....................... 1.5 2.1 2.7 3.2 3.7 3.2 3.5 3.6 3.5 3.6 3.9 4.0 4. 1 3.9 9 10 Other loans................................ .4 .7 .5 .4 .5 .4 .7 .4 1.7 .7 -.6 -.5 1.8 1.9 10 11 Net increase in liabilities........__ 5.6 6.0 6.4 7.1 7.9 7.1 7.1 7.6 7.9 8.0 7.9 7.9 7.9 8.2 11 12 Life insurance reserves................. 3.3 3.6 4.0 4.2 4.7 4. 1 4.0 4.5 4.7 4.7 4.6 4.6 4.5 4.7 12 13 Pension fund reserves................... 1.4 1.4 1.7 2.0 2. 1 2.0 2.0 2.0 2.1 2.1 2.1 2.2 2.2 2.4 13 14 Other........................................... 1.0 1.0 .7 .8 1.2 .8 1.0 1.3 1.1 1.0 1.1 1.3 1.2 .9 14 For numbered notes see p. 157. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

156 FLOW OF FUNDS JANUARY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1961 1962 1963 1964 1965 in IV I II III IV I r IP III (1.4) Noninsured Pension Plans 1 Net acquis, of financial assets 4........ 3.9 4.0 4.4 4.9 4.9 4.1 5.9 4.4 5.2 5.1 5.0 6.8 4.1 6.5 1 2 Credit mkt. instr.?......................... 3.8 4 0 4.3 4.8 4.9 4.1 5.7 4.9 5.3 5.0 4.2 6.7 4.8 6 8 2 3 U.S. Govt, securities................. .2 .4 ,4 —. 3 * 1.3 — .6 —. 3 — . 5 1.1 — .8 1.0 3 4 Corporate bonds........................ 1.2 1.2 1 5 1.6 1. 5 1.5 1 .7 1.9 1.7 1.7 .7 2.5 1.3 1.5 4 5 Corporate stock......................... 2.3 2.2 2.2 2.2 3. 1 2.1 2.2 3.1 3.0 3.3 3.2 2.8 4.0 3.8 5 (1.5) Other insurance companies 1 Net acquis, of financial assets 4........ 1.3 1.4 1.4 1.0 2.0 1.0 1.2 1.8 2.4 2.4 1.5 1.1 2.0 1.5 1 2 Demand deposits and currency... * -. 1 * -.1 -.1 -.1 * 2 3 Credit mkt. instr.......................... 1.2 1 9 1.3 .8 1 9 9 1 1 1.7 2.3 2.3 1.3 9 1.8 1.3 3 4 U.S. Govt, securities.......... 2 * 4 ’2 I — 2 1 I -‘5 — 1 -.5 4 5 State and local obligations........ .7 ^8 ’2 .6 * .3 '5 .7 .'7 ^5 .7 .7 5 6 Corporate bonds............. 4 1 1 4 .9 1 2 1.2 1 0 .8 .6 4 ^ 7 Corporate stock.............. .3 .2 .2 2 1 * .2 .5 2 1 1 .5 .6 7 (1.6) Finance companies 1 Net acquis, of financial assets4........ .6 2.7 4.0 4.0 5.4 3.5 2.2 4.9 6.5 4.5 5.6 3.9 3.4 .1 1 2 1- to 4-family mortgages.............. .6 .5 .8 .4 .5 . 1 .2 .9 .5 1.0 -.1 .4 -.6 -.7 2 3 Consumer credit............................ * 1.3 1.8 1.8 1.9 1 .4 1.3 2.3 2.2 1.8 1.5 .9 1.2 1.5 3 4 Other loans.................................... - .2 .8 1.6 1.8 2.7 2.0 .6 1.5 3.7 1.5 4.0 2.4 2.6 -.8 4 5 Net increase in liabilities................... .5 2.6 4.0 4.0 5.1 3.3 2.5 4.2 6.2 5.4 4.6 3.7 4.0 * 5 6 Corporate bonds........................... . 5 .3 1.4 2. 1 1.9 2. 1 1.7 1.6 1 .8 1.5 2.7 1.6 .3 1.9 6 7 Bank loans n.e.c............................ . 1 1 .0 1.6 .4 2.2 -1.6 -.1 2.7 2.1 l.l 3.0 -. 1 3.0 -6.3 7 8 Open mkt. paper........................... -. 1 1.2 1.0 1.5 1.0 2.8 .8 ♦ 2.2 2.8 -l.l 2.2 .7 4.3 8 (1.7) Security brokers and dealers 2 1 Ne U t . a S c . q G ui o s, v t o , f s f e i c n u an ri c t i i a e l s a .. s .. s .. e .. t . s .. . . . . . . . . . . . . . . . . . . . . 1.0 . . 9 7 -1. . 3 6 . . 2 7 - -. . 3 2 -.4 . 6 - - 1 1 . . 3 0 1 . . 9 3 2 1 . . 3 4 - - 8 5 . . 6 3 4 1 . . 3 8 2 1. . 1 0 -1. . 3 4 - — 4 1 . . 7 6 2 1 3 Other securities............................. -.2 .4 .2 -.4 —. 4 .3 .4 .6 -2.8 .1 — 1.6 ! .0 -1.4 3 4 Security credit............................... l.l -.2 1.5 -.5 .5 -.7 — . 6 - . 1 .2 - .5 2.3 .6 .6 -1.8 4 5 6 7 Ne F F t r r i o o n m m cr . b a i g a n e n n l k i c a s i b e .. . s . — . . o .. s f . e . f . c g .. u n . r .. . i . t . y b .. . a c .. n r .. k e .. d s .. . i . . . t . . . . . . . . . . . . . . . . . 8 9 * -.2 .9 . . 4 5 . . 2 1 - - - . . . 3 3 2 - - - . . 3 . 4 3 - - 1 1 . . . 3 0 2 - 2 1 . . 7 . 5 3 2. . . 3 8 1 - - 8 9. . . 3 7 2 - 4 5 .7 . . 0 2 l. . . 4 l 1 - - . . 2 . 2 3 - - 4 4 -. . . 3 8 3 6 7 5 8 Customer credit balances............. . 1 . 3 — . 5 —. 4 1.4 .7 (1.8) Open-end investment companies -.5 -.4 -.4 -.8 -1.1 -.8 -1.0 -.9 -.7 - .8 -2.0 -2.0 -.7 -.9 1 2 Net acquis, of financial assets.... 1.4 1.5 .8 1. 1 2.0 1.4 1.6 1.7 1 .6 2.7 2.2 3.3 2.6 2.9 2 3 Credit mkt. instr........................ 1.4 1.2 .8 1. 1 1.6 2.0 1.5 1.0 1.1 2.4 1.9 3.5 1.5 1.2 3 4 Corporate stocks.................... 1.0 1.1 .6 .7 1.2 1.4 1.5 . 1 1.6 1.1 1.9 1.7 .8 .3 4 5 Net stock issues3.......................... 1.8 1.9 1.2 1.8 3.1 2.2 2.6 2.6 2.3 3.5 4.2 5.3 3.3 3.8 5 (J) Rest of the world 1 Net purch. of goods and serv (2-3).. 5.6 5.1 5.9 8.5 7.0 8.5 8.6 6.5 8.2 7.1 6.1 6.3 5.4 4.7 I 2 Purch. of goods and services 1... 28.6 30.3 32.3 37.0 39.0 37.2 38.1 35.1 40.5 40. 1 40.2 42.0 42.3 43.8 2 3 Sales of goods and services 1....... 22.9 25.1 26.4 28.5 32.0 28.8 29.6 28.7 32.3 33.0 34.2 35.7 36.8 39.0 3 4 Net unilateral receipts from Govt.1. 2.6 2.7 2.8 2.8 2.8 2.8 2.7 2.6 3.1 2.9 2.6 3.4 3.0 2.8 4 5 Current surplus (4—1) ^ .......... . -3.1 -2.5 -3.1 -5.7 -4.2 -5.7 -5.9 -3.8 -5.1 -4.2 -3.5 -2.9 -2.5 -2.0 5 6 Net financial investment (7-14)........ -2.0 -1.3 -2.8 -4.7 -3.7 -5.1 -4.5 -3.6 -4.6 -3.5 -3.2 -1.5 -1.7 -2.8 6 7 8 Ne G t a o c l q d u .. i . s .. , . . o ... f . . 6 .. n .. a . n .. . . .. a .. s . s .. e .. t . s .. . . . . .. . . . . . . . . . . . .. . . . . . . 3. . 3 9 2. . 6 9 3. . 4 5 3. . 4 1 2 1 . .7 0 2.3 1 7. . 6 7 3 3 . . 7 3 2 1 . . 4 8 1 . . 5 2 1. . 2 5 1. . 5 3 6. . 0 8 2 . . 7 2 7 8 9 U.S. dem. dep. and currency... .7 . 1 .5 . 1 .9 1.1 -.7 -.5 .7 .8 -.1 .3 -2.4 9 10 Time deposits............................. .3 . 6 1.0 1.4 . 6 1.0 1.6 .8 .8 .2 . 5 —. 1 2.0 .6 10 11 US Govt, securities................. .4 1.3 .6 . 5 -.2 .4 1.7 -2.0 .9 -1.0 1.5 -2.4 “1.4 -3.5 11 12 Other credit market instr...... .4 .2 .3 . 1 -.1 -.5 -.4 1.3 -.7 - .8 -.1 1.0 3.1 1.5 12 13 Mise, financial assets................ .6 -.4 1.1 .8 -.1 .5 3.0 .9 -1.1 1.6 -2.0 2.9 1.2 5.3 13 1 1 4 5 Ne O t f i f n ic c i r a e l a s U e . S in . f l o ia r b e i i l g it n i e e s x .. c . h . a . n . g . e . . 3 5. . 4 3 - 3 . . 6 9 6. . 2 1 8.2 5. . 7 4 - 7 . . 4 5 12 1 . . 1 3 7.3 * 6 2. . 1 4 4. . 7 3 - 4 . . 6 4 -1 2 . . 4 9 7 . . 6 7 4. . 9 4 1 1 4 5 16 Securities................................... .8 1.0 1.0 .7 .9 2.0 1.3 1.0 .7 . 8 1.7 1.0 . 6 16 17 Loans 4...................................... 1.8 l.l 2.2 3.7 1.9 3.3 4.4 4.3 1.1 .2 1.9 1.0 2.0 .2 17 18 Miscellaneous 3.......................... 2.5 2.5 2.8 3.9 2.6 4.5 4.4 2.2 2.7 3.3 2.3 2.1 4.9 4.3 18 19 Discrepancy (5-6) 6................... - 1.0 - 1.2 - .4 -1.0 -.4 -.6 -1.4 -.2 -.5 -.7 -.3 -1.4 -.7 .8 19 U.S. gold and fgn. exchg. held by: 20 Monetary auth................................. - .8 - .8 -.4 -1.3 7 0 -3.0 -2.2 1.3 -1.4 -2.1 .2 .4 20 For numbered notes see following page. See Note at end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 FLOW OF FUNDS 157 Notes to Table 4 (A) Households 1 Includes nonprofit organizations serving individuals. 1 Line 9 plus capital consumption on owner-occupied houses 2 Imputed saving associated with growth of government life and nonprofit plant and equipment. insurance and retirement reserves. From Tables 4(E), line 13 " Includes net free balances with security brokers not shown and 4(F), line 6. separately. 3 Capital-gains dividends from open-end investment cos. plus 11 Policy loans, hypothecated deposits, and U.S. Govt, loans life insurance reserve revaluations. to nonprofit organizations. (B, C, D) Business 1 Sum of Tables 4(C) and 4(D); for detail see below. 8 Loans from U.S. Govt, and commercial loans from finance 3 Profits and noncorporate income as defined in national cos. income. Excludes imputed rental income of owner-occupied 9 Includes earnings retained in business; see note 6 above. houses, included in Table 4(A). 10 Excludes corporations in Tables 4(C), (G), (H), and (I). 3 Change in work in process. 4 After inventory valuation adjustment, 11 Includes branch profits paid to foreign parents less branch 5 Includes corporate farms. profits received from abroad. 9 Noncorporate net income is treated as payment in full to 12 Includes State and local obligations not shown separately. proprietors in the household sector. Gruss saving consists of 13 Direct investments abroad, foreign currency holdings, and capital consumption allowances plus corporate farm retained unallocated current assets. profits. 11 Mainly commercial paper and commercial loans from 7 Excludes C.C.C.-guaranteed loans, treated as Govt, borrow­ finance companies. ing; see Table 4(E), line 30. ’" Includes State and local profit taxes. (E, F) Govts. 1 Lines 1 through 12 are derived from national-income data, 5 Govt, life insurance, employee retirement, and R.R. retire­ while lines 15 through 31 are based on data behind Treasury ment programs. Excludes social security, which is treated as cash budget. Line 21 is a link between the two accounting sys­ non-financial operation. tems on treatment of corporate taxes, and the discrepancy 0 Mainly nonconvertible foreign currencies and official foreign (line 32) represents differences on other matters. exchange position of Treasury. Net cash borrowing in Treasury cash budget corresponds 7 Public debt held by public and Federal Reserve, plus non­ closely to line 25 less accrual of interest on savings Bonds and guaranteed issues of Govt, agencies. Includes interest accruals Treasury bills. Cash surplus is closely indicated by line 17 less on savings bonds and Treasury bills; excludes special notes to net cash borrowing. Lincs 18, 22, 30, and 31 are in cash outgo IMF. Loan participations include C.C.C., FNMA, Export­ in cash budget except for small amounts in receipts. Lines 13 Import Bank, and all other certificates. In Table 3 they are and 24 are imputations reflected in neither national-income nor grouped with non-guaranteed issues. Net movements in in­ cash budget. ventory under C.C.C. guarantee are included in line 11. Loans 3 OASI, disability insurance, and unemployment programs. and mortgages securing other loan participations are included Line 5 includes U.S. Govt, employment taxes; line 6, U.S. in U.S. Govt, financial assets. Govt, benefit payments to households. 8 E and H bonds held by households. 3 Veterans’ life insurance and Govt, employee and R.R. re­ tirement funds. Line 7 excludes Govt, contributions to these du 1 e 1 M in a r l k e e s t s a b th le a n i s 2 su y es e a d r u s. e in less than 1 y ' ear plus part of those funds. 1 Transfers other than lines 6 and 8, grants-in-aid to State 19 Includes employee retirement funds. and local govts., subsidies less current surplus of Govt, enter­ 11 Net of current surplus of govt, enterprises. prises. 13 Corporate bonds, mortgages and tax receivables. (G, H) Banking 1 Federal Reserve System plus those Treasury accounts in­ Reported bank data, as on p. 102, are frequently for last cluded in “Member Bank Reserves, Federal Reserve Bank Wednesday of month or other reporting date. Excludes banks Credit, and Related Items.” Excludes Exchange Stabilization in U.S. possessions. Fund, which is in U.S. Govt, accounts. 9 Deposits with F.R. Banks; vault cash in reserves is in line 4. 3 Includes F.R. holdings of foreign currencies, which are net 7 Net change in par value of holdings. in other F.R. accounts” in table mentioned in note 1. 8 Includes consumer loans secured by hypothecated deposits 3 Includes vault cash of nonmember banks. not shown separately. ’ * Includes deposits of international organizations other than 9 Includes deposits held outside Treasury. IMF; IMF deposits are net in line 3. 10 Bank and nonbank. " Based on. balance sheet estimates for last day of quarter. 11 Net of F.R. float, shown separately in line 30. (I) Nonbank Finance 1 In addition to types shown, includes credit unions, agencies 4 Includes cash and other assets, not shown separately. of foreign banks, and banks in possessions. “ Excludes deposits at FHLB, which are included in Miscel­ 3 Lines 10, 11 of 1.1; lines 6, 7, and 8 of 1.6; and line 5 laneous, line 7. of 1.8. 0 Includes consumer credit, not shown separately. 3 Includes retained capital-gains dividends. 7 Includes mortgages, not shown separately. (J) Rest of the World 1 Lines 2, 3, and 4 are exports, imports and transfers to 4 Bank loans, acceptances, loans from U.S. Govt., and secu­ foreigners income and product accounts. rity credit. 2 Net foreign investment in national income accounts with op 3 p O os f i f t i e c ia s l i g f n o . reign currency holdings and net IMF position of tha 8 n D ir in e ct l in in e v e 1 st 5 m , e s n u t b a sc b r r i o p a ti d o , ns f or t e o i gn i nt c e u r r n r a e t n io ci n e a s l h o el r d g an b i y z a o ti t o h n e s r U.S. IMF position consists of U.S. capital subscription less except IMF, and unidentified liabilities. IMF holdings of special U.S. Govt, notes and deposits with 0 Errors and omissions in U.S. balance of payments state­ Federal Reserve. ment. Note.-—Quarterly data are seasonally adjusted totals at annual rates. Beginning with this presentation, C.C.C. and Export-Import Bank loan participation certificates are reclassified from other loans to U.S. Govt, securities. See also notes on p. 151. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Financial Statistics International Reported gold reserves of central banks and governments .............................................. 160 Gold production .................................................................................................................. 161 Net gold transactions and gold stock of the United States.............................................. 162 Foreign gold reserves and dollar holdings ........................................................................ 163 International capital transactions of the United States ................................................... 164 U.S. balance of payments...................................................................................................... 174 Foreign trade ......................................................................................................................... 175 Money rates in foreign countries ......................................................................................... 176 Arbitrage on Treasury bills ................................................................................................. 177 Foreign exchange rates ........................................................................................................ 178 Guide to tabular presentation ............................................................................................. 86 Index to statistical tables ...................................................................................................... 185 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 publi­ and No. 10033, dated Feb. 8, 1949, and Treas­ cations at the end of the Bulletin). ury regulations thereunder. Other data are com­ 159 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

160 GOLI) RESERVES JANUARY 1967 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E pe n r d io o d f m to a t t a e l d M ta o r n y e­ U St n a i t t e e s d r m es a t t e o d f A i f s g t h an an­ A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund2 world 1959 40,195 2,407 19,507 18,280 n.a. 56 154 292 1,134 327 960 43 I960 40,540 2,439 17,804 20,295 n.a. 104 147 293 1,170 287 885 45 1961 41,140 2,077 16,947 22,115 36 190 162 303 1 ,248 285 946 48 1962 41,470 2,194 16,057 23,220 36 61 190 454 1,365 225 42 708 43 1963 42,310 2,312 15,596 24.400 36 78 208 536 1,371 150 42 817 43 1964 ....................... 43,060 2,179 15,471 25,410 36 71 226 600 1 ,451 92 84 1,026 43 1965-—Nov............... 1,868 13,879 35 66 224 700 1 ,558 63 84 1,138 43 Dec................ 3 43,300 1,869 13,806 27,355 35 66 223 700 1 ,558 63 84 1,151 44 1966-—Jan................. 1 ,871 13,811 35 66 223 700 1,558 63 84 1,113 44 Feb............... 2.116 13,811 35 66 223 700 1 ,558 63 84 1,076 43 Mar............... 43,330 2,358 13,738 27,235 35 65 223 700 1 ,556 63 84 1 ,086 43 Apr............... 2,369 13,668 35 65 224 700 1,556 45 84 1,096 44 May.............. 2,557 13,582 35 65 223 700 1 ,556 45 84 1 ,061 43 June.............. 43,325 2,562 13,529 27,235 35 64 222 700 1 ,555 45 84 1 ,024 43 July............. 2,586 13,413 35 67 224 700 1 ,532 45 84 986 45 Aug............... 2,645 13,319 35 70 226 700 1 ,529 45 84 997 45 Sept............... M3,25 5 2,645 13,356 ^27,255 35 74 225 701 1 ,527 45 84 1,009 45 Oct................ 2,645 13,311 35 77 226 701 1 ,524 84 1,021 45 Nov............... 2,648 13,262 ............3..5 225 701 1 ,524 84 1,034 44 Ger- E pe n r d io o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India I n n e d si o a ­ Iran Iraq Israel Italy Japan Rep. of 1959. 71 57 38 1,290 2,637 26 247 33 140 84 2 1,749 244 1960. 78 107 41 1 ,641 2,971 76 247 58 130 98 2,203 247 1961 88 107 47 2,121 3,664 87 247 43 130 84 10 2,225 287 1962 57 92 61 2,587 3,679 77 247 44 129 98 41 2,243 289 1963. 62 92 61 3,175 3,843 77 247 35 142 98 60 2,343 289 1964,....................... 58 92 85 3,729 4,248 77 247 ...........1.4..1 112 56 2,107 304 1965--Nov............... 34 97 85 4,638 4,406 78 281 146 122 56 2,404 Dec............... 35 97 84 4,706 4,410 78 281 146 122 56 2,404 328 1966--Jan................ 36 97 84 4,740 4,410 78 281 146 (22 56 2,404 Feb................ 29 .97 84 4,774 4,406 108 243 145 122 56 2,404 Mar............... 23 102 58 4,806 4,402 108 243 132 122 46 2,369 328 Apr............... 24 108 55 4,874 4,402 98 243 132 122 46 2,369 May.............. 24 108 55 4,953 4,311 98 243 132 122 46 2,370 June.............. 24 108 55 5,026 4,310 109 243 132 122 46 2,369 329 July.............. 24 108 55 5,117 4,302 112 243 132 122 46 2,362 Aug............... 25 108 55 5,209 4,297 112 243 131 122 46 2,358 Sept............... 108 55 5,241 4,295 116 243 131 122 46 2,356 329 Oct................ 108 54 5,236 4,289 116 243 131 122 46 2,351 Nov............... 108 51 5,237 4,290 1 19 243 131 122 46 2,382 E pe n r d io o d f Kuwait a L n e o b n ­ Libya M c e o xi­ Mo co roc­ N la e n th d e s r­ Nigeria N w o ay r­ 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 1959 . n.a. 102 142 23 1,132 30 50 28 9 548 18 1960. n.a. 119 137 29 1,451 30 52 42 15 552 18 1961 . 43 140 112 29 1,581 20 30 53 47 27 443 65 1962. 49 172 3 95 29 1,581 20 30 53 47 41 471 78 1963. 48 172 7 139 29 1,601 20 31 53 57 28 497 78 1964. 48 183 17 169 34 1,688 20 31 53 67 23 523 78 1965--Nov......... 49 182 68 159 31 1 ,756 20 31 53 67 37 572 73 Dec............... 52 182 68 158 21 1,756 20 31 53 67 38 576 73 1966--Jan................ 55 182 68 157 21 1,756 20 31 53 67 39 583 73 Feb................ 55 193 68 157 21 1 ,756 20 31 53 67 41 592 73 Mar............... 58 193 68 134 21 1,756 20 31 33 67 42 595 69 Apr................ 58 193 68 133 21 1,756 20 31 53 65 43 600 69 May.............. 58 193 68 142 21 I ,730 20 18 53 65 44 605 69 June.............. 61 193 68 141 21 1 ,730 20 18 53 65 45 607 69 July............... 62 193 68 140 21 1,730 20 18 53 65 47 612 69 Aug............... 62 193 68 138 21 1,730 20 18 53 65 48 626 69 Sept............... 62 193 68 21 1 ,730 20 18 53 65 49 627 69 Oct................ 63 193 68 21 1,730 20 18 53 65 51 633 69 Nov............... 63 .............. 68 .............. 21 1 ,730 20 18 53 65 52 ............6..9 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 GOLD RESERVES AND PRODUCTION 161 GOLD RESERVES OF CENTRAL HANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E p n er d i o o d f S A o fr u i t c h a 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 i m t g ed ­ 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 i e . ­ ments 4 1959 238 68 191 1,934 41 104 133 174 2,514 180 652 10 -134 I960 178 178 170 2,185 41 104 134 174 2,800 180 401 4 -19 1961 298 316 180 2,560 43 104 139 174 2,268 180 401 6 115 1962. 499 446 181 2,667 43 104 140 174 2,582 180 401 4 -50 1963 630 573 182 2,820 50 104 115 . 174 2,484 171 401 14 -279 1964............................. 574 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 1965-—Nov................... 382 810 202 2,660 54 96 116 139 155 401 19 -247 Dec................... 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 1966-—Jan................... 471 810 202 2,661 55 96 1 16 139 155 401 19 -105 Feb.................... 499 810 202 2,661 55 96 1 16 139 155 401 19 -120 Mar................... 520 785 202 2,652 55 92 1 16 139 2,036 155 401 20 -30 Apr.................... 557 785 202 2,647 55 92 1 16 139 155 401 20 -80 May.................. 581 785 203 2,630 55 92 1 16 139 155 401 20 -36 June.................. 640 785 203 2,648 59 92 116 139 2,041 155 401 20 -191 July................... 677 785 203 2,683 59 92 106 139 155 401 20 -401 Aug................... 672 785 203 2,681 59 92 105 139 155 401 20 -388 Sept................... 664 785 203 2,681 59 92 100 139 1 ,940 155 401 20 -299 Oct.................... 655 785 203 2,680 62 92 100 121 155 401 21 -277 Nov................... 637 785 203 2,679 .............. 92 100 93 401 .......-..2..7..5. i Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas; for regional organizations, central banks, and govts, of countries listed in most of these countries the increased quotas became effective in Feb. 1966. this table and also of a number not shown separately here, and gold to be 3 Adjusted to include gold subscription payments to the IMF, except distributed by the Tripartite Commission for the Restitution of Monetary those matched by gold mitigation deposits with the United States and Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ United Kingdom. Adjustments are as follows (in millions): 1965 Sept. tries, and China Mainland. +$268; and Dec. +$270. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank's gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Beginning June 1965, excludes gold subscription payments made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ A So fr u ic th a d R e h s o ia ­ Ghana C s ( h K o a n i s g n a o ­ ) U St n a i t t e e s d C ad an 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 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. ................... 1,215.0 803.0 20.1 29.2 8.1 54 8 156.6 9.4 7 9 14.0 5.5 14.8 37.7 53.9 1962.................................. 1,290.0 892.2 19.4 31.1 7.1 54.5 146.2 8.3 7.8 13.9 5.7 14.8 37.4 51.6 1963.................................. 1,355.0 960.1 19.8 32.2 7.5 51.4 139.0 8.3 7.2 11.4 4.8 13.2 35.8 64.3 1964.................................. 1’395.0 1,018.9 20.1 30.3 6.6 51.4 133.0 7.4 7.9 12.8 5.2 14.9 33.7 52.8 1965.................................. 1,430.0 1,069.4 19.0 26.4 2.3 58.6 125.6 7.6 6.9 H.2 4.6 15.2 30.7 52.5 1965—Oct......................... 90.4 1.7 10.5 ,7 1.0 1.3 2.6 Nov........... 9! .6 2.1 10.4 .5 .8 1.2 2.3 Dec........................ 89.3 2 4.7 2.3 10,2 .7 .7 21.1 1.3 2.6 1966—Jan....................... 91.2 9.8 .7 1.0 .4 1.2 2.5 Feb........................ 87.8 9.6 .9 .9 .3 1.2 2.4 Mar....................... 90.5 21,2 10.1 .8 .9 .3 1.3 2.6 Apr........................ 90.8 10.1 .3 .8 .4 2.8 May...................... 91.9 10.2 .8 .4 2,9 June....................... 89.3 9.2 .8 .3 23.9 3.3 July........................ 89.4 9.1 .8 2.6 Aug................... 90.1 8.9 1.0 Sept........................ 91.7 8.9 24.0 Oct........................ 89.7 9.1 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 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

162 U.S. GOLD JANUARY 1967 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) 1965 1966 Area and country 1957 1958 1959 1960 1961 1962 1963 1964 1965 III IV I II III Western Europe: Austria. ............... -84 -83 — I — 143 -82 -55 -100 -38 -25 Rejgium ........................... 3 -329 -39 -141 -144 -63 -40 -83 -21 France..................... -266 -173 -456 -518 -405 -884 -117 -137 -103 -221 -277 Germany Fed Rep. of. . . -34 -23 -225 Italy..................................... -349 100 200 -80 Netherlands....................... 25 -261 -30 — 249 —25 -60 -35 Spain................................ 31 32 -114 -156 -146 -130 -32 -180 -30 Switzerland......................... -215 20 -324 -125 102 -81 -50 7 11 -20 United Kingdom............... -900 -350 -550 -306 -387 329 618 150 132 64 -19 -7 126 Rank for Inti Settlements. -178 -32 -36 -23 i Other................................... 8 -41 -48 -96 -53 -12 -7 -37 -9 -7 -34 -4 -I Total......................... 68 -2,326 -827 -1,718 -754 -1,105 -399 -88 -1,299 -82 -81 -174 -221 -172 Canada................................ 5 190 100 50 50 Latin American republics: Argentina.......... 75 67 -50 -90 85 -30 -28 Brazil................................ -11 -2 -2 57 72 54 25 -1 -1 -1 -i -1 Colombia.................................... -6 38 10 29 -1 7 Venezuela........................... 65 -25 -25 Other................... 6 2 -35 -42 -17 -5 -11 -9 -13 -3 -3 -6 -3 -5 Total........................... 81 69 19 -100 -109 175 32 56 17 -4 -29 * -4 -34 Asia: Tapan ......................... -30 -157 -15 -56 Other.................................. 18 -4 -28 -97 1 -101 2 -93 12 3 -24 -3 -6 -25 -2 -12 Total........................... 18 -34 -186 -113 -101 -93 12 3 -24 -3 -6 -82 -2 -12 All other................................. -3 -5 -38 -6 „1 -36 -7 -16 -15 9 -9 -8 -4 Total foreign countries...... 172 -2,294 -998 -1,969 -970 -833 -392 -36 -1,322 -104 -108 -165 -185 -172 Inti. Monetary Fund............... 600 3 -44 4 300 150 5-225 6 8 6 26 6 131 6 18 629 Grand total......... 772 -2,294-1,041 -1,669 -820 -833 -392 -36 -1,547 -96 -82 -34 -167 -143 1 Includes sales of $21 million to Lebanon and $48 million to Saudi million in 1956, and $300 million in 1959 and in 1960) with the right of Arabia. repurchase; proceeds from these sales invested by IMF in U.S. Govt, 2 Includes sales of $21 million to Burma, $32 million to Lebanon, and securities. $13 million to Saudi Arabia. 5 Payment to the IMF of $259 million increase in U.S. gold subscription, 3 Payment to the IMF of $344 million increase in U.S. gold sub­ less gold deposits by the IMF. scription, less sale by the IMF of $300 million (see note 4). 6 Represents gold deposit by the IMF; see note 2 to table below. 4 IMF sold to the United States a total of $800 million of gold ($200 U.S. GOLD STOCK AND HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES BY U.S. MONETARY AUTHORITIES (In millions of dollars) End of period Changes in— End of period Changes in— Year Gold stock1-2 Foreign Month Gold stock1 •2 Foreign Total c h u o r l r d e in n g cy s Total T g o o t l a d l Total h c o u l r d re in n g cy s4 Total T g o o t l a d l Total3 Treasury Total 3 Treasury 1954. . 21,793 21,793 21,713 -298 -298 1965—Dec.. . . 14,587 13,806 13,733 781 -99 -73 1955 ........ 21,753 21,753 21,690 -40 -40 1956........ 22,058 22.058 21,949 305 305 1966—Jan.....1.4,450 13,811 13,732 639 -137 5 1957........ 22,857 22,857 22,781 799 799 Feb.... 14,188 13,811 13,730 377 -262 Mar,... 14,297 13,738 13,634 559 109 -73 1958........ 20,582 20,582 20,534 -2,275 -2,275 Apr.... 14,190 13,668 13,632 522 -107 -70 1959........ 19,507 19,507 19,456 -1,075 3 -1,075 May... 14,210 13,582 13,532 628 20 -86 1960........ 17,804 17,804 17,767 -1,703 -1,703 June... 14,251 13,529 13,433 722 41 -53 1961........ 17,063 16,947 16,889 116 -741 -857 July.... 14,506 13,413 13,332 1,093 255 -116 1962........ 16,156 16,057 15,978 99 -907 -890 Aug.... 14,618 13,319 13,259 1,299 112 -94 1963........ 15,808 15,596 15,513 212 -348 -461 Sept.... 14,504 13,356 13,258 1,148 -114 37 1964........ 15,903 15,471 15,388 432 95 -125 Oct.. . . 14,524 13,311 13,257 1,213 20 -45 1965........ 14,587 13,806 13,733 781 -1,316 6 -1,665 Nov.... 14,370 13,262 13,159 1,108 -154 -49 1966........ 14,556 13,235 13,159 1,321 -31 -571 Dec.... 14,556 13,235 13,159 1,321 186 -27 1 Includes gold sold to the United States by the International Mone­ 4 For holdings of F.R. Banks only, see pp, 96 and 98. tary Fund with the right of repurchase, which amounted to $800 million 3 Includes payment of $344 million increase in U.S. gold subscription on Dec. 31, 1966. Also includes gold deposit of IMF; see note 2. to the IMF. 2 Beginning Sept. 1965, includes gold deposited by the IMF to mitigate 6 Includes payment of $259 million increase in U.S. gold subscription the impact on the U.S. gold stock of purchases by foreign countries for to the IMF. gold subscriptions on increased IMF quotas. Amount outstanding was Note.—See Table 11 on p. 171 for gold held under earmark at F.R. $211 million on Dec. 31, 1966. The United States has a corresponding Banks for foreign and international accounts. Gold under earmark is gold liability to the IMF. < not included in the gold stock of the United States. 3 Includes gold in Exchange Stabilization Fund. See also Note to table on gold reserves. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 GOLD RESERVES AND DOLLAR HOLDINGS 163 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 31, 1964 Sept. 30, 1965 Dec. 31, 1965 Mar. 31, 1966 June 30, 1966 Sept, 30, !966’J Area and country Gold & U.S. Gold & U.S. Gold & U.S. Gold& U.S. Gold & U.S. Gold & U.S. short­ Govt, short­ Govt, short­ Govt, short­ Govt, short­ Govt, short­ Govt, term bonds term bonds term bonds term bonds term bonds term bonds dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes Western Europe: Austria............................................................ 923 3 959 3 950 3 911 3 906 3 934 3 Belgium...................................................... 1,887 1 ,972 1,956 1,926 1,933 * 1,905 Denmark......................................................... 428 14 335 14 402 14 443 13 429 13 395 13 Finland........................................................... 212 I 179 1 192 1 153 1 127 [ 116 1 France............................................................. 5,392 7 5,667 7 5,703 7 5,877 7 6,168 7 6,316 7 Germany, Fed. Rep. of................................. 6,258 1 5,753 1 5,839 1 5,822 1 6,066 1 6,515 1 Greece............................................................. 248 228 * 229 252 * 246 251 Italy................................................................. 3,729 1 3,758 1 4,024 1 3,695 1 3,888 1 3,881 2 Netherlands.................................................... 2,055 5 2,086 6 2,095 6 2,027 5 I ,960 5 2,055 5 Norway........................................................... 215 98 262 68 354 49 285 45 346 51 302 51 Portugal........................................................................... 780 837 898 889 892 947 Spain............................................................... 1,010 2 1 ,064 2 993 2 903 2 900 2 966 2 Sweden............................................................ 833 40 906 24 849 24 853 24 891 24 896 24 Switzerland..................................................... 4,095 79 4,039 89 4,411 89 4,108 91 4,258 93 4,438 93 Turkey............................................................. 140 140 * 150 155 137 124 United Kingdom............................................ 4,020 414 5,101 548 4,979 553 5,237 564 5,161 560 5,549 298 Other1............................................................. 508 49 393 50 34 50 498 49 343 50 252 49 Total........................................................ 32,733 714 33,679 814 34,058 800 34,034 806 34,651 811 35,842 549 Canada............................................................... 4,010 690 3,928 718 3,725 676 3,394 683 3,195 686 3,200 693 Latin American republics: Argentina........................................................ 362 449 498 ♦ 552 ♦ 549 * 548 Brazil............................................................... 350 * 475 * 446 * 344 * 370 * 385 * Chile................................................................ 219 249 263 245 238 * 283 Colombia........................................................ 267 1 200 249 1 200 1 206 1 211 1 Cuba............................................................... 12 10 10 * 10 10 10 Mexico............................................................ 904 1 803 861 * 874 1 739 1 674 1 Panama, Republic of.................................... 99 1 113 1 120 1 135 1 156 I 149 1 Peru................................................................. 273 1 323 J 324 1 319 1 312 1 281 1 Uruguay........................................................ 282 * 299 * 292 * 312 * 334 311 Venezuela...................................................... 1,135 I ,091 1,139 1 1,102 1 1,101 1 1 ,080 1 Other............................................................... 478 2 558 2 584 1 605 * 594 * 570 ♦ Total........................................................ 4,381 6 4,570 5 4,786 5 4,698 5 4,609 5 4,502 5 Asia: India................................................................ 306 357 * 365 321 * 367 394 Indonesia........................................................ 73 1 58 66 1 72 1 84 1 88 1 Japan............................................................... 3,071 5 3,274 9 3,342 9 3,294 9 3,226 9 3,071 9 Philippines....................................................... 256 312 342 352 374 366 * Thailand......................................................... 562 598 638 719 * 668 704 Other.............................................................. 2,059 43 2,223 41 2,249 41 2,268 41 2,428 41 2,540 41 Total........................................................ 6,327 49 6,822 51 7,002 51 7,026 51 7,147 51 7,163 51 Africa: South Africa................................................... 621 * 400 * 476 ♦ 609 707 * 728 * U.A.R. (Egypt)............................................... 163 159 169 155 * 162 * 154 Other......................................................... 283 16 357 16 347 16 373 16 392 16 432 15 Total........................................................ 1,067 16 916 16 992 16 1,137 16 1,26! 16 1 ,314 15 Other countries: Australia......................................................... 402 421 * 477 455 501 465 * All other....................................................... 382 26 386 28 379 29 434 31 409 27 409 26 Total........................................................ 784 26 807 28 856 29 889 31 910 27 874 26 Total foreign countries2............................ 49,302 1,501 50,722 1,632 51,419 1,577 51,178 1,592 51,773 1,596 52,895 1,339 International and regional3..................... 7,161 904 <6,999 795 4 6,878 752 4 7,659 556 4 7,653 433 48,091 389 Grand total2........................................... 56,463 2,405 57,721 2,427 58,297 2,329 58,837 2,148 59,426 2,029 60,986 1,728 1 Includes, in addition to other Western European countries, unpub­ millions): 1965—Sept. 30, $285; Dec. 31, $313; 1966—Mar. 31, $2; June lished gold reserves of certain Western European countries; gold to be 30, $1; and Sept. 30, $3. distributed by the Tripartite Commission for the Restitution of Mone­ tary Gold; European Fund; and the Bank for International Settlements Note.—Gold and short-term dollars include reported and estimated (the figures for the gold reserves of the BIS represent the Bank’s net official gold reserves, and official and private short-term dollar holdings gold assets). (principally deposits and U.S. Treasury bills and certificates); excludes 2 Excludes gold reserves of the U.S.S.R., other Eastern European nonnegotiable, non-interest-bearing special U.S. notes held by the Inter­ countries, and China Mainland. American Development Bank and the International Development Assn. 3 Includes international organizations and Latin American and Euro­ U.S. Govt, bonds and notes are official and private holdings of U.S. pean regional organizations, except the Bank for International Settlements Govt, securities with an original maturity of more than 1 year; excludes and European Fund, which are included tn “Other Western Europe.” nonmarketable U.S. Treasury bonds and notes held by official institutions 4 Excludes gold subscription payments by member countries in anticipa­ of foreign countries as shown in Table 8 on p. 170. tion of increase in IMF quotas. Amounts outstanding as follows (in See also Note to table on gold reserves. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

164 INTL. CAPITAL TRANSACTIONS OF THE U.S. JANUARY 1967 1. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS (Amounts outstanding; in millions of dollars) End of period G to r t a a n l d 1 I a n n t d i, c F o o u r n e t i r g ie n s E W u e ro st p e e rn 2 Canada Am L e a r ti i n ca n Asia Africa co O u t n h t e ri r e s regional 1 republics 1963............................................ 19,505 5,855 13,650 7367 1,664 1,058 2,731 154 176 1964........................................... 20,221 5'876 14,'345 8'266 1 '483 1 338 3,020 160 178 1965—Nov................................. 19,520 5,836 13,684 7,192 1,440 1 343 3,297 187 225 Dec................................ 19',922 5,751 14,171 7'532 1 ’403 1 ,497 3,300 194 245 1966—Jan.................................. 19,783 5,839 13,944 7,264 1,339 1 ,480 3,421 209 231 Feb................................ 19,391 5,815 13,576 6,914 1,364 1 ,’425 3,439 210 224 Mar................................. 19303 5’848 13’555 7,017 1308 I 359 3,410 218 243 Apr................................. 19312 5’785 13,627 6368 1 362 1 ,415 3'519 229 234 May................................ 19’538 5,633 1 3 305 7,238 1,239 1 ,438 3 332 235 223 June,............. 19 386 5,515 13’771 7,415 I 302 1 325 3’438 237 254 July............................... 19397 5323 13 374 7326 1'163 1,163 3 364 234 224 Aug.............................. . 19,576 5’827 13'749 7’626 1,096 I ’ 162 3,393 252 220 Sept................................. 19,182 5327 13,355 7378 1 390 1 '056 3 340 266 225 Oct.1’.............................. 19'563 5 318 13,745 7481 1 J96 1,114 3'444 282 228 Nov. »............................ 19309 53! 1 13,798 7352 1 312 1'105 3,412 293 224 i Excludes $776 million letter of credit issued by the U.S. Treasury Depl. as reported by banks in the United States, and estimated foreign official to the International Monetary Fund in payment of the dollar portion of holdings of marketable U.S. Govt, securities with an original maturity the U.S. quota increase which became effective on Feb. 23, 1966. of more than I year. Data exclude nonnegotiable, non-interest-bearing 2 Includes Bank for International Settlements and European Fund. special notes held by the Inter-American Development Bank and the International Development Association, and also nonmarketable U.S. Note.—Data represent short-term liabilities to the official institutions Treasury notes and bonds, payable in dollars and in foreign currencies. of foreigncountries and to official international and regional organizations, 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional Foreign End of Grand Latin Other period total 1 Europe Canada America Asia Africa coun­ Total 1 IntU^ Re­ Total Offi­ Other tries gional3 cial4 1961............................. 22,533 3,752 3,695 57 18,781 10,940 7,841 10,322 2,758 2,340 2,974 283 104 1962............................. 25'019 5’145 4338 207 19,874 11,963 7311 10,162 3,349 2’448 3'444 319 152 1963............................. 25,967 4,637 4,501 136 21 330 12,467 8363 10,770 2388 3 J 37 4,001 241 194 19645........................... 28’873 4'974 4302 172 23,899 13’220 10'679 12336 2,984 3 363 4'687 238 192 1965—Nov...........«... 29,171 5,085 4,948 137 24,086 12,579 J1 307 11,461 2,970 3,836 5,288 274 257 Dec................... 29372 5,000 4’882 117 24,072 13 366 11 306 11 327 2374 4’027 5,286 280 278 1966—Jan..................... 29 277 5 095 4,967 128 24,182 12,844 11,338 11,672 2,561 4,043 5,326 312 268 Feb.................... 29 J 54 5,210 5,083 127 23,944 12,476 11 '468 1 1 358 2,589 4'055 5,356 335 253 Mar........... 29 346 5,292 5J77 115 23,954 12,455 11 '499 11,660 2,308 4’026 5,359 330 272 Apr................... 29,498 5 397 5 J80 116 24 301 12'527 11'674 11,522 2’460 4'099 5’526 328 266 May.................. 29'706 5'195 5383 113 24,511 12305 11 306 11,868 2 359 4,145 5,541 336 262 June.................. 29,629 5,082 4,972 110 24 347 12,665 11 382 12331 2,171 3’936 5,470 334 305 July.................. 30,707 5,191 5 380 111 25^516 13,021 12395 13,349 2 391 3'884 5,393 329 269 Aug................... 31 ’224 5338 5332 106 25,786 12397 12,889 13,786 2 J64 3,826 5 405 339 265 Sept................. 31 384 5,438 531 1 127 25,647 12303 13,144 13,534 2'191 3'808 5 384 363 267 Oct.’’................. 32’086 5,429 5303 126 26,657 12,893 13,764 14,177 2'400 3'914 5 322 376 268 Nov.’*............... 32339 5351 5332 118 26,988 12'938 14350 14373 2356 3,866 5 330 398 266 2a. Europe Ger­ E pe n r d i o o d f 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 an th d e s r­ Norway Po g r a t l u­ Spain Sweden Rep. of 1961................. 10,322 255 326 52 91 989 2,842 67 1,234 216 105 99 153 406 1962................. 10'162 329 177 67 73 1,157 2'730 119 1,384 248 125 161 177 490 1963................. 10'770 365 420 161 99 1’478 3,’041 188 '803 360 133 191 205 409 1964................. 12,236 323 436 336 127 1,663 2,010 171 1,622 367 184 257 394 644 1965-Nov.... 11,461 263 404 275 105 1,045 1,424 133 1,328 373 239 303 210 667 Dec....... 11,627 250 398 305 108 997 1,429 151 1 ,620 339 323 322 183 647 1966—Jan........ 11,672 232 392 323 102 985 1,449 148 1 ,483 255 231 299 152 644 Feb....... 11,358 202 366 331 103 997 1 ,438 157 1 ,325 257 240 291 115 658 Mar...... 11,660 211 370 341 95 1,071 1,420 144 1 ,326 271 254 294 118 651 Apr....... 11,522 203 380 347 91 1,024 1,409 142 1,378 242 284 295 120 661 May.... 11,868 208 379 323 86 1,068 1 ,479 144 1,409 272 311 281 132 671 June.... 12,331 206 378 321 72 1,142 1 ,756 137 1,519 230 328 285 115 688 July.. .. 13,349 205 406 295 70 1,169 2,025 131 1,725 344 347 306 138 672 Aug...... 13,786 180 390 271 66 1,137 2,086 129 1 ,667 331 299 322 174 673 Sept...... 13,534 233 378 287 61 1,075 2,220 135 1,525 325 284 320 181 693 Oct.”. . . 14,177 208 418 285 57 1 ,096 2,423 141 1,447 335 265 320 155 674 Nov.’’... 14,573 183 462 272 53 1,124 2,571 145 1,367 364 283 343 160 655 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 165 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 E p n er d i o o d f Sw la i n tz d er­ Turkey U K d n i o n i m t g ed ­ Y sla u v g i o a ­ W E O u e t s r h o te e p r r e n 6 U.S.S.R. E E O a u s t r h t o e e p r r n e Total A t r i g n e a n­ Brazil Chile Co b l i o a m­ Cuba Mexico 1961.. .............. 875 26 2,227 12 325 5 16 2,340 235 228 105 147 43 495 1962................. 908 25 1 ,609 11 351 3 19 2^448 210 204 135 148 15 531 1963.................. 906 21 1 ’483 •16 465 2 24 3'137 375 179 143 169 1 ( 669 1964.................. 1,370 36 1 884 32 358 3 19 3'563 291 258 176 209 12 735 1965—Nov...... 1,268 27 3,032 48 287 3 27 3,836 397 382 188 201 10 644 Dec....... 1,369 34 2,714 36 369 4 30 4,027 432 383 219 214 10 703 1966—Jan........ 1,331 34 3,212 14 353 4 30 4,043 424 364 210 189 9 728 Feb....... 1,353 35 3,095 20 345 4 27 4,055 461 367 186 174 11 742 Mar...... I ,456 39 3,201 14 358 3 27 4,026 487 281 202 177 10 740 Apr....... 1,466 28 3,062 16 342 3 27 4,099 503 266 199 196 9 727 May.... 1,585 28 3,117 16 330 3 27 4,145 518 337 205 193 9 717 J u ne.... 1.610 21 3,120 21 353 29 3,936 485 325 195 182 10 598 July. . . . 1,696 18 3,350 20 397 4 31 3,884 473 309 198 189 9 575 Aug....... 1,692 26 3,901 27 380 6 29 3,826 489 .322 201 182 9 555 Sept...... 1,757 24 3,609 32 358 6 32 3,808 474 340 238 186 10 536 Oct.'1. . . 1 ,747 31 4,165 40 332 6 33 3,914 438 357 238 183 10 568 Nov."... 1,764 30 4,414 33 313 5 33 3,866 417 354 226 176 9 618 2b. Latin America—Continued 2c. Asia E pe n r d io o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ O L re t . h A p e . . r B B e a r h m & am u d a a s 7 A S n u N t r i e l in l t e h a s . m & Am O L e a th t r i i e n c r a7 Total C M la h a n i i n d n a ­ K H o o n n g g India n d I e n o s ­ i ­ a Israel 1961................. 87 84 57 418 226 111 89 15 2,974 35 56 78 76 63 1962............9..8... 105 101 405 267 123 97 10 3,444 36 65 41 28 8! 1963..........1..2..9... 158 113 591 355 136 93 15 4,001 35 66 51 48 112 1964............9..9... 206 111 734 416 189 114 14 4,687 35 95 59 38 133 1965—Nov...... 116 244 129 715 501 177 111 20 5,288 35 108 83 31 118 Dec....... 120 257 137 738 519 165 113 17 5,286 35 113 84 31 127 1966—Jan........ 126 248 144 788 511 164 119 18 5,326 35 112 86 34 123 Feb....... 135 235 164 721 541 182 118 18 5,356 35 119 94 28 120 Mar...... 135 252 157 701 546 186 127 24 5,359 36 1 12 78 37 125 Apr....... 145 240 161 787 547 174 128 16 5,526 36 119 159 52 139 May.... 146 233 167 762 529 183 125 19 5,541 36 117 141 55 128 June.... 156 247 179 700 534 181 126 19 5,470 35 114 124 49 118 July. ... 144 230 180 735 541 164 117 19 5,393 36 118 125 44 119 Aug....... 145 227 166 698 537 158 117 20 5,405 36 128 134 49 106 Sept...... 149 216 156 679 510 179 115 21 5,484 36 135 151 53 115 Oct J’. . . 148 237 156 738 520 178 121 23 5,522 36 142 151 62 108 Nov."... 152 236 161 694 517 174 108 24 5,430 36 135 167 60 102 2c, Asia—Continued 2d. Africa 2e. Other countries E pe n r d i o o d f 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 C s ( h K o a n i s n g a ­ o ) ro M cc o o ­ 7 A So fr u i t c h a ( U E . g A y . p R t) . A O f t r h i e c r a Total t A ra u l s ia ­ oth A e ll r 7 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 2,767 104 233 221 458 543 238 26 7 47 24 135 192 176 15 1965-—Nov......... 3,020 HO 290 220 513 762 274 11 30 57 19 158 257 235 22 Dec.......... 3,014 108 304 211 542 718 280 12 17 51 30 170 278 254 24 1966 Jan........... 2,965 118 295 213 577 768 312 11 19 72 18 191 268 244 24 Feb.......... 2,964 117 302 211 604 760 335 11 19 95 18 192 253 226 27 Mar........ 2,966 116 310 214 627 738 330 14 19 89 16 192 272 232 40 Apr.......... 2,959 121 313 2(7 580 832 328 11 20 89 17 192 266 231 35 May........ 2; 933 114 320 221 585 891 336 8 20 95 15 197 262 233 29 June........ 2,897 119 329 227 576 881 334 9 22 67 23 213 305 279 26 July......... 2,780 120 325 241 595 891 329 10 25 63 25 205 269 241 28 Aug.......... 2'760 129 316 242 603 902 339 12 35 56 22 215 265 237 28 Sept...... 2,742 134 317 244 612 945 363 13 40 64 15 231 267 240 27 Oct 7'........ 2,’685 138 315 246 622 1 ,017 376 12 41 64 26 232 268 243 25 Nov,".. .. 2,629 158 287 239 61 1 1 ,006 398 14 38 73 45 229 266 242 24 i See Note 1 to Table I. 5 Includes revisions arising from changes in reporting coverage as 2 International Bank for Reconstruction and Development, Inter­ follows (in millions of dollars): Total 4*50; Foreign other 4-50; Europe national Monetary Fund, International Finance Corporation, Interna­ — 17; Canada 4-1 ; Latin America 4-26; Asia 4-49; Africa —9. tional Development Assn., and other international organizations. 6 Includes Bank for International Settlements and European Fund. 1 Latin American, Asian, African, and European regional organiza­ i Data based on reports by banks in the Second F.R. District only for tions, except Bank for International Settlements and European Fund year-end 1961-62. which are included in "Europe”. 4 Foreign central banks and foreign central govts, and their agencies, For Note see end of Table 2. and Bank for International Settlements and European Fund. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

166 INTL. CAPITAL TRANSACTIONS OF THE U.S. JANUARY 1967 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 2f. Supplementary Data 8; (end of period) 1964 1965 1966 1964 1965 1966 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia (Cont.): Iceland...................................... 5.2 7.1 5.8 4.0 Iran......................................... 23.4 62.0 66.9 79.2 Ireland Rep. of........................... 8.7 6.3 6.2 6.6 Iraq.............................................. 21.6 65.4 12.0 Luxembourg........................... 17.4 20.1 21.1 28.2 Jordan......................................... 2.7 7.9 16.0 16.0 Monaco......................................... 4.1 3.6 3.7 4.0 Kuwait....................................... 56.4 52.0 35.5 24.6 Laos.............................. 5.0 5.0 3.2 5.7 Other Latin American republics: Lebanon...................................... 84.2 113,2 99.7 92.0 Bolivia....................................... 43.2 53.1 67.4 64,4 Malaysia.................................... 22,2 36.3 25.9 31,2 Costa Rica.................................... 31.5 28.6 34.2 32.9 Pakistan....................................... 23.1 24.8 19.4 21,0 Dominican Republic................... 55.8 47.3 72.3 54.3 Ryukyu Islands (incl. Okinawa). 25.6 32.7 24.0 39.5 Ecuador............................... 67.1 65.2 69,6 62.3 Saudi Arabia............................... 197.2 288.0 283.6 291.0 El Salvador................... 56.0 71.7 67.0 78.3 Syria........................ 7.6 3.2 4.0 4.8 Guatemala................................... 48.7 71.6 68.1 86.9 Vietnam....................................... 19.0 19.7 39.0 123.8 Haiti............................................ 14.3 15.4 16.3 16.7 J T H N P a a r o i m i c r n n a a a i d g r d i a u u c a g r a a d a u y . . s a & . . . . . . . . . . . . . . . T . . . . . . . . . . o . . . . . . . . . . b . . . . . . . . . a . . . . . . . . . g . . . . . . . . o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 1 7 7 6 2 1 . . . . . 0 0 4 4 4 3 6 1 7 8 3 7 2 . . . . . 1 8 0 6 4 3 6 1 3 8 7 1 3 . . , . , 6 6 0 8 4 7 4 1 1 6 5 3 1 5 . , . . , 3 5 0 0 2 Ot E A he t l h g r i e o A r p i f a i r a . i . c , . . a . ( : . i . n .. c .. l . . . . E ... r .. i . t . r . e .. a .. ) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 5 3 0 1 . . . . 6 7 5 0 , 4 1 2 5 5 7 . . , . 1 1 2 6 4 1 7 2 4 7 . . . . 1 6 6 9 5 1 1 2 8 9 3 . . . . 9 7 9 6 Libya.......................................... 28.9 26,8 34.8 26.7 Other Latin America: Mozambique.............................. 2.5 1.6 1.6 1.7 British West Indies....................... 8.0 16.0 11.5 8.9 15.7 20.3 21.7 n.a. French West Indies & French Somali Republic......................... .5 .8 .8 .9 Guiana...................................... 1.1 1.4 2.2 1.5 93.4 2.6 3.3 3.5 Sudan.......................................... 2.2 2.2 3.7 3.3 Ot A B he u f r g r h m A a s a n i . a i . s . : . t . a .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 2 . . 5 5 3 6 5 . . 3 9 4 5 9. . 1 6 n 8 . . a 0 . Tunisia........................................ ( . ’ 9 ) 1 . . 9 0 7 1 . .8 2 n 1 . . a 0 . Cambodia..................................... 1.5 1.7 2.7 n.a. Ceylon........................................... 2.4 2.7 2.4 3.3 All other: New Zealand.............................. 12.0 19.7 18.7 27.1 8 Represent a partial breakdown of the amounts shown in the “other” their date of issue; the latter, however, exclude nonnegotiable, non­ categories (except "Other Eastern Europe”) in Tables 2a-2e. interest-bearing special U.S. notes held by the International Develop­ 9 Includes data reported for Malawi (formerly Nyasaland) and Zambia ment Assn, and the Inter-American Development Bank. For data on (formerly Northern Rhodesia). long-term liabilities, see Table 6. For back figures and further descrip­ tion of the data in this and the following tables on international capital Note.—Short-term liabilities are principally deposits (demand and transactions of the United States, see “International Finance,” Section time) and U.S. Govt, securities maturing in not more than 1 year from 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 institutions1 To all other foreigners Payable in End of period Total i foreign Deposits U.S. Special Deposits U.S. currencies Total T bi r l e ls a s a u n r d y U.S. Other 4 Total T bi r l e ls a s a u n r d y Other 4 Demand Time 2 certificates notes 3 Demand Time 2 certificates 1961...................... 22,533 20,025 707 7,363 2,388 1,567 2,358 1.5>77 149 232 150 1962...................... 25,019 22'311 8,528 9,214 3,012 1 ,557 2,565 2.096 116 352 143 1963...................... 25'967 22'787 5,629 3,673 8,571 3,036 1,878 3,047 1,493 966 119 469 134 1964 5................... 28’873 25,406 6,731 3,990 8,727 3; 308 2,650 3,377 1 ,531 1,271 72 503 90 1965—Nov........... 29,171 25,481 6,810 4,005 8,078 3,470 3,118 3,591 1,551 1,562 91 387 98 Dec............ 29,072 25326 6,569 3,963 8,269 3,470 3,155 3,587 1,574 1,594 87 332 59 29,277 25,319 6,871 4,043 7,848 3,558 2,999 3,592 1,563 1,627 94 308 365 Feb............ 29,154 25,108 6,795 3,991 7,822 3,548 2,952 3,658 1,586 1,636 95 341 388 Mar........... 29,246 25 ,'188 7,117 3,823 7,643 3,592 3,012 3,676 1,530 1 ,703 89 354 381 Apr....... 29^498 25,380 7,080 3,895 7,548 3,597 3,260 3,712 1,578 1,693 106 336 406 May...... 29^706 25^66 7,293 3,769 7,464 3,627 3,412 3,704 1,531 1,718 88 367 437 June.......... 29’629 25,430 7,297 3,656 7,384 3,614 3,479 3,743 1,526 1,756 72 389 456 July........... 30'707 26*492 7,863 3,684 7,605 3,680 3,660 3,729 1,490 1,762 80 397 485 Aug........... 31^224 27,008 8,211 3,700 7,529 3,923 3,645 3,659 1,413 1,770 81 395 556 Sept........... 31'084 26,633 7,893 3,847 7,363 3,958 3,572 3,843 1,531 1,807 108 397 608 Oct.”. 32'086 27'559 8,447 4,004 7+71 3,964 3,473 3,825 1,480 1,820 98 427 702 Nov.p........ 32,439 27339 8,605 4,067 7,896 3,976 3,395 3,795 1,492 1 ,814 89 400 705 1 See Note 1 to Table 1. 4 Principally bankers’ acceptances, commercial paper, and negotiable 2 Excludes negotiable time certificates of deposit, which are included time certificates of deposit.. tn "Other.” s Includes revisions arising from changes in reporting coverage as 3 Nonnegotiable, non-interest-bearing special U.S. notes held by the follows (in millions of dollars): Total +50; foreign banks, etc. +55; International Monetary Fund; excludes such notes held by the Inter­ other foreigners +23; payable in foreign currencies —28. national Development Assn, and the Inter-American Development Bank, which amounted to $25 million on Nov. 30, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 167 4. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) End of period G to ra ta n l d I r n e t g i i , o a n n a d l Europe Canada A L m a e t r i i n c a Asia Africa 1 co O un th tr e ie r s 2 1961................................................................................. 4,820 767 556 1,522 1 891 85 1962................................................................................. 5,163 I 877 526 1 '606 2,017 137 1963................................................................................. 5 975 939 638 1,742 2 493 104 58 1964................................................................................. 7,469 1,217 725 2^212 3 J 37 120 58 1964 3............................................................................... 7 957 * 1'230 1,004 2^235 3 294 131 64 1965—-Nov....................................................................... 7,486 1,169 685 2,175 3,253 134 69 Dec...................................................................... 7,632 1 '201 593 2’288 3,343 1 39 67 Dec.4................................................................... 7'734 * L208 669 2,293 3'358 139 67 1966—Jan...................................................................... 7,557 * 1,207 625 2,210 3,297 142 76 Feb....................................................................... 7’471 1 1,145 631 2'188 3'299 1 32 76 Mar...................................................................... 7,590 I1 1176 647 2 J 99 3 ’ 366 135 66 Apr..................................................................... 7'474 1 1,166 603 2,149 3,359 137 58 May.................................................................... 7 ’ 560 1'220 607 2'210 3 317 142 63 June..................................................................... 7,649 11285 643 2,221 3,298 140 62 July...................................................................... 7 ’ 503 7 1,291 641 2'244 3 J 35 128 63 Aug...................................................................... 7.411 1 1’304 563 2’268 3,086 128 61 Sept.. ................................................................... 7,418 1,315 556 2,303 3,061 124 59 Oct.p................................................................... 7.442 1 1 ^319 610 2^335 2,987 129 61 Nov.7’................................................................... 7.545 1 L417 595 2^354 2,984 134 60 4a. Europe End of period Total A tr u ia s­ g B iu e m l­ m D a e r n k ­ l F a i n n d ­ France G Fe e d r o m . f R an ep y . , Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o ga r­ l Spain S d w en e­ 1961................................. 767 5 20 11 23 42 165 6 35 54 27 5 1 1 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................................. 1,217 10 42 28 85 79 159 9 109 39 43 19 40 47 1964 J............................... 1,230 11 48 26 84 Bl 152 10 114 36 43 23 40 49 1965—Nov...................... 1,169 10 50 29 79 79 173 12 110 36 47 23 41 44 Dec...................... 1,201 8 52 37 87 72 190 13 110 38 51 26 50 52 Dec.4................... I ,’208 8 52 37 87 72 190 13 110 38 5( 26 50 52 1966—Jan....................... 1 ,207 9 57 33 86 74 177 13 121 39 55 26 59 53 Feb...................... 1 ’ 145 8 54 36 89 66 184 14 109 40 49 29 55 54 Mar...................... 1’176 11 47 38 91 84 185 13 102 44 50 31 48 51 Apr...................... 1'166 10 47 39 86 74 182 13 102 37 51 31 64 53 May............... 1'220 11 66 36 87 70 174 14 99 39 57 32 73 58 June............ L285 12 56 40 92 72 200 13 108 34 47 34 63 60 July...................... 1,291 13 54 54 93 71 209 13 100 52 50 37 68 65 Aug...................... 1 ’304 10 58 53 90 71 217 15 106 42 49 38 62 65 Sept..................... 1 ,315 13 60 60 92 72 225 17 105 40 51 42 56 68 Oct.37................... 1'319 13 70 61 95 64 217 16 105 43 53 40 60 83 Nov. v.................. 1 317 19 73 63 95 81 237 16 110 44 62 36 72 74 4a. Europe—Continued 4b. Latin America End of period S l w e an r it ­ d z­ T k u ey r­ U K d n i o n i m t g ed ­ 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 5 U.S.S.R. E E O a u s t r h t o e e p r r n e ’s 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 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................................ 97 36 319 15 20 20 2,212 210 145 188 319 17 630 19643............................... 111 37 310 16 20 * 20 2^235 203 126 176 338 17 644 1965—Nov...................... 81 26 240 28 28 5 26 2,175 234 84 157 262 16 665 Dec...................... 73 42 210 28 28 6 27 2,288 232 94 174 270 16 669 Dec.4................... 73 42 216 28 28 6 27 2,293 232 94 174 270 16 674 1966—Jan....................... 88 36 198 26 27 5 25 2,210 231 96 176 243 16 662 Feb...................... 85 6 177 27 30 5 28 2'188 224 94 175 236 16 686 Mar............ 78 21 196 25 27 4 31 2399 221 97 173 225 16 718 Apr...................... 74 18 198 23 31 4 30 2,149 206 82 165 235 16 713 May..................... 83 30 200 23 32 5 32 2^210 199 95 168 234 17 732 June..................... 80 48 235 23 34 5 28 2’221 196 98 169 238 16 722 July..................... 78 50 198 20 35 3 25 2,244 192 106 163 254 16 729 Aug...................... 92 42 214 17 37 2 25 2'268 182 110 158 279 16 743 Sept..................... 78 47 216 18 34 2 17 2,303 182 112 150 287 16 736 Oct.p................... 76 48 200 20 36 1 18 2'335 181 106 150 288 16 724 Nov.”.................. 94 45 221 19 37 2 17 2'354 177 109 141 294 16 724 For notes see the following page. 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168 INTL. CAPITAL TRANSACTIONS OF THE U.S. JANUARY 1967 4. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 4b. Latin America—Continued 4c. Asia E p n er d i o o d f Panama Peru g U u r a u y ­ V zu e e n l e a ­ r O l e L i p c t . h s A u e b . 7 r ­ m B B m u a & d e a h r a s a ­ ­ 1 A N S n n u a e t & i m r t l h i l ­ e . s A O L ic m a t a h t e i e n 8 r r ­ Total C M la h a n i i n d n a ­ H K o o n n g g India I n n e d si o a ­ Israel 1961................. 32 74 55 144 56 13 74 1 ,891 9 9 8 36 1962................. 30 85 122 102 66 9 98 2,017 13 20 * 37 1963................. 35 99 65 114 135 42 9 16 2,493 2 1 1 17 22 1964................. 41 102 76 165 222 58 18 20 3,137 2 26 22 7 44 1964 3................ 49 108 78 168 224 65 18 21 3294 2 28 21 7 47 1965—Nov....... 55 147 50 181 234 52 14 22 3,253 1 28 16 1 76 Dec....... 59 170 45 220 250 53 14 23 3,343 I 29 17 86 Dec 4.... 59 170 45 220 250 53 14 23 3,358 1 29 17 2 86 1966—Jan........ 59 169 49 185 237 51 13 23 3,297 1 24 22 2 86 Feb....... 63 160 56 174 224 41 13 24 3,299 1 26 26 2 82 Mar...... 62 167 44 171 217 45 13 27 3,366 1 29 28 2 91 Apr....... 66 167 42 174 206 43 12 23 3,359 1 32 28 2 84 May... . 64 175 56 174 200 57 16 22 3,317 1 33 28 1 81 June.... 67 186 55 174 205 57 16 21 3,298 I 33 29 1 89 July.. .. 66 177 57 180 218 55 17 16 3,135 1 32 26 6 88 Aug...... 67 177 39 184 224 56 17 16 3,086 1 30 27 6 90 Sept.. . . 65 175 39 212 234 57 20 17 3,061 1 28 28 6 88 Oct.^. . . 71 204 37 224 246 55 17 16 2,987 J 30 19 5 96 Nov J'... 76 197 43 222 263 56 17 18 2.984 I 31 13 5 98 4c. Asia—Continued 4d. Africa 4e. Other countries 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 C s ( h K o a n i s n g a o ­ ) M c o o r o 1 c­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h i e c r a1 Total 2 A t l r i u a a s ­ ­ ot A he ll r 9 1961......................... 1,528 4 114 10 34 145 6 10 13 85 29 27 1962.......................... 1,740 3 70 9 41 80 2 10 26 137 41 57 1963.......................... 2’171 25 113 8 52 71 104 I 1 15 28 59 58 48 9 1964......................... 2^653 21 202 9 64 88 120 I 2 19 42 56 58 48 10 1964 3....................... 2,’810 21 203 9 65 82 131 1 2 20 42 67 64 48 16 1965—Nov............... 2,683 20 240 11 71 104 134 1 33 32 67 69 55 14 Dec............... 2,751 22 231 15 82 108 139 1 2 34 43 60 67 52 15 Dec.4............ 2,768 22 230 15 82 107 139 I 2 34 43 60 67 52 15 1966—Jan................ 2,698 24 229 16 83 112 142 I 38 38 63 76 62 14 Feb................ 2^609 24 227 15 81 1 17 132 37 34 58 76 62 14 Mar............... 2,783 24 206 15 72 1 15 135 I 3 35 42 55 66 59 7 Apr............... 2^782 24 202 16 73 1 14 137 ♦ 2 39 43 53 58 50 8 May............. 2,759 14 205 15 70 1 10 142 * 50 39 50 63 52 11 June.............. 2; 733 16 191 17 69 118 140 1 9 41 48 48 62 52 9 July............... 2,588 19 173 16 67 1 18 128 * 2 38 44 43 63 54 9 Aug............... 2,536 20 183 17 64 1 12 128 * 2 37 44 44 61 52 9 Sept............... 2,485 27 195 15 65 122 124 1 2 34 38 49 59 50 9 Oct.^............. 2^98 24 207 16 67 123 129 3 37 37 51 61 51 1 1 Nov?'............ 2; 389 26 211 15 72 122 134 ♦ 2 45 30 57 60 50 10 1 Not reported separately until 1963. 8 Until 1963 includes also the following Latin American republics: 2 Includes Africa until 1963. Costa Rica, Ecuador, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, 3 Differs from December data in line above because of the exclusion and Trinidad and Tobago. as of Dec. 31, 1964, of $58 million of short-term U.S. Govt, claims 9 Until 1963 includes also African countries other than Congo (Kin­ previously included; and because of the addition of $546 million of short­ shasa), South Africa, and U.A.R. (Egypt). term claims arising from the inclusion of claims previously held but first reported as of Dec. 31, 1964; and because of revision of preliminary data. Noth.—Short-term claims are principally the following items payable 4 Differs from December data in line above because of the addition on demand or with a contractual maturity of not more than 1 year: loans of short-term claims held in custody for domestic customers, but reported made to, and acceptances made for, foreigners; drafts drawn against by banks for the first time as of Dec. 31, 1965. foreigners, where collection is being made by banks and bankers for 5 Until 1963 includes Eastern European countries other than U.S.S.R., their own account or for account of their customers in the United States; Czechoslovakia, Poland, and Rumania. and foreign currency balances held abroad by banks and bankers and 6 Czechoslovakia, Poland, and Rumania only until 1963. their customers in the United States. Excludes foreign currencies held 1 Bolivia. Dominican Republic, El Salvador, and Guatemala only until by U.S. monetary authorities. 1963. See also Note to Table 2. 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JANUARY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 169 5. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) , Payable in dollars Payable in foreign currencies Loans to— Foreign End of period Total Collec­ A a c n c c e e p s t ­ govt, se­ tions made Deposits curities, Total Total O i t n i f o s f t i n i c s t i u a 1 l ­ Banks Others st o i a n u n g t d ­ ­ f e o o i r g f a n f c e o c r r t s ­ , 2 Other3 Total w ei i g th n e f r o s r­ a n c n o a d m n c l f e . i ­ Other4 paper2 1961.............................. 4,820 4,234 1,660 329 709 622 700 1 ,874 586 386 200 1962............................. 5,163 4,606 1,954 359 953 642 686 1 ,967 557 371 186 1963 ............................. 5,975 5,344 1,915 186 955 774 832 2,214 384 631 432 157 42 1964............................. 7,469 6,810 2,652 223 1 ,374 1 ,055 1 ,007 2,600 552 659 400 182 77 1964 5............................ 7,957 7,333 2,773 221 1 ,403 1,150 1,135 2,621 803 624 336 187 102 1965—Nov................... 7,486 6,983 2,887 251 1,535 1,10! 1,207 2,41 ! 477 503 325 75 103 Dec.................... 7,632 7,158 2,967 271 1 ,566 1,130 1,268 2,501 422 474 325 54 95 Dec.6................ 7,734 7,243 2,970 271 1,567 1 ,132 1,272 2,508 492 492 329 68 96 1966—Jan..................... 7,557 7,082 2,865 257 1 ,498 1,110 1,252 2,489 475 475 292 65 118 Feb.................... 7,471 7,035 2,816 224 1 ,497 1 ,095 1 ,264 2,484 472 436 260 61 115 Mar................... 7,590 7,145 2,867 231 1,508 1 ,128 1 ,287 2,545 446 445 286 53 106 Apr................... 7,474 7,067 2,719 221 1 ,425 1 ,073 1 ,305 2,578 466 406 252 61 94 May.................. 7,560 7,139 2,835 224 1 ,520 1,09! 1 ,298 2,542 464 421 253 62 106 June.................. 7,649 7,179 2,91 1 248 1 ,584 1 ,079 1 ,320 2,475 473 469 294 63 113 July................... 7,503 7,078 2,860 215 1 ,570 1 ,075 1 ,340 2,383 495 425 252 59 113 Aug................... 7,41 1 6,971 2,820 216 1 ,548 1 ,056 1 ,374 2,324 453 440 260 57 123 Sept................... 7,418 6,992 2,943 256 1,619 1 ,068 1 ,374 2,266 409 427 241 61 125 Oct J’................. 7,442 7,010 2,968 272 1 ,607 1 ,089 1 ,354 2,251 436 432 251 73 108 Nov."................ 7,545 7.092 3,015 273 1,619 1,123 1 . 363 2,276 439 452 269 77 106 i Includes central banks. previously included; because of the addition of $546 million of short­ 2 Not reported separately until 1963. term claims arising from the inclusion of claims previously held, but first ’ Until 1963 includes acceptances made for account of foreigners. reported as of Dec. 31, 1964; and because of revision of preliminary data. 4 Until 1963 includes foreign government securities, commercial and 6 Differs from December data in line above because of the addition finance paper. of short-term claims held in custody for domestic customers, but reported 5 Differs from December data in line above because of the exclusion, by banks for the first time as of Dec. 31, 1965. as of Dec. 31, 1964, of $58 million of short-term U.S. Govt, claims 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 liabili­ ties Total Payable in dollars Payable claims All fo c r i u e n i r g ­ n U K d n o in i 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 h l e l r2 Loans1 other1 rencies 1 1961............................. 2 2,034 11 482 274 931 24 146 166 1962.............................. 7 2,160 25 552 304 886 74 148 17! 1963 ............................. 69 3 3,030 2,811 217 2 38 3 1,063 290 3 1 015 3 249 3 194 113 68 1964............................. 306 3 971 3 777 195 77 1 611 273 1 162 385 238 123 104 19644............................ 310 4 285 3,995 288 [ 87 1 632 327 1 *275 430 255 156 122 1965—Nov................... 467 4,567 4,277 284 6 87 1,557 354 1 313 462 372 211 211 Dec................... 513 4,517 4,21 I 297 9 86 1 518 346 1,296 445 391 208 228 1966—Jan..................... 515 4,444 4,151 287 6 85 1,489 336 1 257 438 393 201 246 Feb.................... 510 4’421 4'126 288 7 86 1 ,449 335 1 247 441 403 211 250 Mar................... 568 4’390 4,093 289 7 86 1 ,419 330 1 265 434 410 192 255 Apr............. 726 4 417 4 127 283 8 85 1 408 326 1 294 430 41 1 192 271 843 4,431 4,153 271 7 85 1 412 308 1*318 425 406 200 276 June.................. 1 ,007 4,389 4,108 272 8 87 1,386 311 1^306 406 410 198 283 July................... 1 ,065 4, 389 4,111 270 8 81 1,349 328 1 300 403 428 202 300 Aug................... I ’,079 4,368 4'095 265 8 78 1 ,328 322 I 296 393 428 204 319 Sept 1 ’095 4 287 4 004 266 16 75 1 270 320 1 306 374 430 202 308 Oct."................. 1 ,153 4,248 3,969 262 16 76 1 ,225 321 1 295 355 433 222 321 Nov."................ 1 J72 4,296 4.026 254 17 72 1 '222 314 1 ,373 339 421 225 329 i 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 2 Includes claims previously held, but reported for the first time as of 4 Differs from Dec. data in line above because of the inclusion of long­ May 1963; on that date such claims were $86 million. Also includes term liabilities and claims previously held, but first reported as of Dec. $193 million reported for the first time as of Dec. 1963, representing 31, 1964, and because of revision of preliminary data. in part claims previously held, but not reported by banks. Included in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

170 INTL. CAPITAL TRANSACTIONS OF THE U.S. JANUARY 1967 7. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. Govt, bonds and notes J U. s S e . c u c r o it r i p e o s ra 2 te Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d i, Foreign c P ha u s r e ­ s Sales c N ha s e a s t e l e p s s u o r r ­ ch P a u s r e ­ s Sales c N ha s e a s t e l e p s s u o r r ­ ch P a u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ regional Total OlTicial Other 1962.....-..7..2..8... ......-.5...2..1... -207 2,568 2,508 60 1,093 2,037 -944 702 806 -104 1963........6..7..1...........3..0..2.. 369 2,980 2,773 207 991 2,086 -1,095 696 644 51 1964.....-.3...3..8.........-.3..1...5... -23 -59 36 3,537 3,710 -173 915 1,843 -928 748 548 200 1965.......-..7..6.........-.1..5...1... 75 -20 95 4,307 4,768 -461 1,198 2,440 -1,242 906 617 290 1965—Nov.......-..5..6....... -43 -13 -8 426 453 -27 125 213 -88 69 51 18 Dec................... 2 I 644 607 37 94 134 -41 83 71 13 1966—Jan................... -9 -10 1 6 473 436 36 109 308 -199 73 65 7 Feb....... -118 -136 19 19 490 487 3 83 189 -106 71 75 -5 Mar...... -54 -50 -4 -4 694 546 148 243 352 -109 100 101 -1 Apr....... -66 -68 2 2 604 565 39 106 260 -154 88 105 -17 May...... -60 -51 -9 -9 738 583 154 152 161 -8 94 55 39 June...... 6 -5 1 1 5 612 501 112 200 217 -17 91 52 40 July....... -246 -246 7 422 436 -14 135 248 -113 69 39 30 Aug....... -21 -44 23 24 397 373 24 69 68 1 76 65 11 Sept....... -34 -35 -35 501 362 139 98 193 -95 86 42 44 Oct.?'.... 20 19 19 382 347 35 292 346 -54 68 36 31 Nov.3'... -7 21 13 432 381 52 117 184 -67 58 41 17 i 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 that are not guaranteed by the United States. 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 1 Total Canada 2 Italy Sweden 1962—Dec........................... 251 200 51 1963—Dec........................... 730 50 30 275 200 175 163 125 13 25 1964—Dec........................... 1,086 50 30 679 327 354 329 25 1965—Dec........................... 1,208 101 30 602 125 350 484 299 160 25 1966—Jan............................ 912 101 30 452 125 205 484 299 160 25 Feb........................... 839 101 30 401 125 182 484 299 160 25 Mar.......................... 789 101 30 351 125 182 524 299 200 25 Apr........................... 713 75 30 301 125 182 524 299 200 25 May......................... 640 75 30 251 125 158 517 299 193 25 June......................... 589 75 30 200 125 158 512 299 188 25 July.......................... 490 75 30 150 125 110 512 299 188 25 Aug.......................... 415 50 30 100 125 110 512 299 188 25 Sept............... 340 25 30 50 125 110 512 299 188 25 Oct........................... 238 25 30 125 58 385 174 186 25 Nov.................. 238 25 30 125 58 355 144 186 25 Dec........................... 342 25 30 50 125 111 353 144 184 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-Dec. 1965. Nov. 1965-Oct. 1966; and $144 million for Nov.-Dec. 1966. 2 Includes bonds issued to the Government of Canada in connection Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 171 9. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE SECURITIES, BY TYPE OF SECURITY AND BY COUNTRY (In millions of dollars) Type of security Country or area Period Total Stocks Bonds France S l z a w e n r i d ­ t­ U K d n o in i m t g ed ­ E O u t r h o e p r e E T u o ro ta p l e Canada A L i m a c t a e in r­ Asia Africa1 O c tr o t i u h e n e s2 r ­ reg I a n i n o t d i n , al 1962.............. 60 111 -51 4 129 -33 24 124 -43 -20 -18 1 17 1963............. 207 198 9 -8 -14 206 16 199 -47 14 17 1 22 1964............. -173 -349 176 -37 -200 -4 14 -228 3 25 10 -1 18 1965............. -461 -499 38 14 -63 -522 47 -523 37 —15 24 -4 — 1 21 1965—Nov.. -27 -35 8 2 -16 -16 -13 -1 2 ♦ * 1 Dec... 37 -94 130 -10 4 -25 48 17 17 -2 I - 1 * 5 1966—Jan... 36 14 22 5 4 2 18 28 -3 3 6 * 1 Feb... 3 -20 22 3 -28 3 -23 11 5 8 1 2 Mar.. 148 -39 187 9 27 -14 24 47 24 5 1 1 71 Apr. . ■ 39 -20 59 2 19 -54 3 -30 24 8 7 * * 29 May.. 154 -16 170 13 30 -66 15 -8 53 14 -7 * 1 101 June.. 112 -43 155 12 ' 3 75 -7 83 4 3 9 * 13 July. . -14 -29 15 2 16 -92 26 -47 9 6 -8 -1 * 26 Aug. . 24 -11 35 2 3 -23 -6 -24 39 8 * * * Sept. . 139 12 127 -2 16 96 2 112 19 8 -2 * * Oct.!'. 35 6 29 -4 23 -10 12 22 13 5 -7 1 * Nov. v 52 -49 100 -5 -14 29 26 36 12 * 1 * * 2 1 Not reported separately until May 1963. Note.—Statistics include State and local govt, securities, and securities 2 Yearly figures through 1963 include Africa, of U.S. Govt, agencies and corporations that 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) Period Total g I a i r n o n e t n d ­ i a , l c T e f o o i o g u t r a n n ­ l ­ r E op u­ e C a a d n a ­ A L i a m c t a i e n r ­ Asia ri A c f a ­ 1 O c tr o i t u h e n s e 2 r ­ E pe n r d i o o d f Deposits U.S. A G ss o e v ts t , in c E us a t r o m d a y rked tries securities1 gold 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................... -728 -1401 -588 163 -670 -36 -77 7 25 1964............. 229 8,389 12,698 1965................... -953 -164 -788 108 -659 -55 -131 3 -54 1965—Dec... 150 8,272 12,896 1965—Nov........ -70 6 -76 30 -30 -17 -29 -6# -24 Dec...... -28 8 -36 4 -28 -1 -14 2 2 1966—Jan... 283 7,974 12,933 Feb.. . 140 7,850 12,964 1966—Jan......... -191 7 -198 6 -192 -9 -8 I 4 Mar... 329 7,617 12,944 Feb......... -111 7 -118 -8 -83 -26 -3 1 Apr... 192 7,455 13,001 Mar........ -110 -94 -16 77 -138 21 29 5 -10 May.. 263 7,631 12,975 Apr......... -172 -31 -140 -8 -167 36 -3 * 2 June.. 313 7,517 12,955 May....... 31 -22 53 75 -13 -14 4 * 1 Julv.. . 548 7,307 13,016 June..... 23 11 12 20 17 -4 -8 -13 Aug... 170 7,042 13,066 July........ -83 -50 -33 15 -37 -11 -5 1 4 Sept... 159 7,092 12,904 Aug,.»... 12 7 4 4 13 -3 -9 ♦ * Oct.... 194 7,336 12,876 Sept........ -51 6 -57 19 -75 4 4 -9 Nov... 196 7,450 12,912 Oct.?. . . . -22 -20 -3 -2 -36 17 10 8 Dec... 174 7,036 12,946 NovT. .. -50 6 -56 * -46 -4 -7 ♦ 2 i U.S. Treasury bills, certificates of indebtedness, 1 Not reported separately until May 1963. notes, and bonds; includes securities payable in foreign 2 Yearly figures through 1963 include Africa. currencies. Note.—Excludes deposits and U.S. Govt, securities held for international organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States (for back figures see “Gold,” Section 14 of Supplement to Banking and Monetary Statistics, 1962). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

172 INTL. CAPITAL TRANSACTIONS OF THE U.S. JANUARY 1967 12. SHORT-TERM LIABILITIES TO ANO CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1965 1966 1965 1966 June Sept. Dec. Mar. June June Sept. Dec. Dec.1 Mar. June Europe: Austria...................................................... 2 2 2 2 3 5 6 6 6 8 7 Belgium.................................................... 21 23 24 27 29 16 20 39 45 46 45 Denmark.................................................. 1 1 I 1 2 11 1 1 9 9 8 8 Finland..................................................... I 1 1 1 1 6 6 6 6 6 6 France...................................................... 47 51 51 45 48 71 81 82 82 97 94 Germany, Fed. Rep. of........................... 73 59 71 60 70 118 105 112 112 118 98 Greece...................................................... 6 7 3 3 3 8 10 13 13 1 1 18 Italy .......................................................... 16 18 18 23 27 81 76 77 77 118 1 11 Netherlands.............................................. 50 45 55 54 65 31 30 41 41 48 42 Norway..................................................... 5 2 2 2 2 7 7 8 8 8 7 Portugal.................................................... 2 6 3 7 6 10 7 5 5 9 8 Spain......................................................... 5 13 21 21 23 33 48 50 50 56 63 Sweden..................................................... 9 11 10 12 12 23 20 20 20 28 30 Switzerland.............................................. 35 49 39 45 61 41 40 27 27 20 20 Turkey...................................................... 7 4 4 4 4 8 8 8 7 10 6 United Kingdom...................................... 100 132 037 H39 137 294 310 312 315 433 487 Yugoslavia................................................ 1 1 1 1 1 5 5 2 2 2 2 Other Western Europe............................ 5 6 3 4 2 8 8 8 8 9 9 Eastern Europe....................................... * * 2 J 2 3 3 3 3 6 Total.................................................. 386 431 '450 r451 495 778 797 828 834 1,039 1,065 Canada.......................................................... 82 84 94 120 117 774 753 685 599 566 550 Latin America: Argentina............................................. 2 3 4 6 5 29 37 32 31 34 34 Brazil........................................................ 11 14 13 11 11 93 91 94 93 80 78 Chile.......................................................... 4 4 4 5 4 27 30 31 30 31 31 Colombia.................................................. 13 13 9 8 7 22 21 20 19 21 22 Cuba.......................................................... 4 4 3 3 3 3 Mexico..................................................... 6 4 5 9 10 76 71 82 76 74 77 Panama..................................................... 21 12 LI 9 4 9 12 13 13 It 13 Peru.......................................................... 5 6 6 7 5 27 26 29 28 30 28 Uruguay.................................................... 2 1 I 2 1 11 1 1 8 8 7 5 Venezuela........................................ 19 20 22 27 26 43 47 50 49 52 49 Other L.A. republics............................... 15 15 16 1 1 12 53 53 59 55 56 55 Bahamas and Bermuda........................... 2 2 2 2 1 9 5 8 8 12 8 Neth. Antilles & Surinam....................... 6 8 7 7 9 3 5 4 4 4 3 Other Latin America............................... 1 2 2 1 2 9 10 9 9 9 9 Total.................................................. 108 105 102 105 98 416 422 442 429 424 416 Asia: Hong Kong.............................................. 2 2 2 2 2 8 8 7 7 5 7 India.......................................................... 24 26 25 25 20 41 36 37 36 35 29 Indonesia.................................................. 7 9 9 12 1 1 6 4 3 3 3 3 Israel......................................................... 2 3 3 1 2 7 5 6 6 5 4 Japan......................................................... 30 28 32 27 27 172 168 170 164 174 155 Korea........................................................ * 1 I 2 6 14 13 13 6 4 Philippines................................................ 6 6 6 7 7 14 14 17 17 16 18 Taiwan...................................................... 1 1 1 5 6 7 5 6 5 6 4 Thailand................................................... 2 1 1 7 7 6 6 8 9 Other Asia................................................ 24 32 32 33 32 66 68 67 66 76 76 Total.................................................. 98 109 113 112 111 332 328 331 322 333 309 Africa; Congo (Kinshasa).................................... * * 1 1 3 1 2 2 2 I South Africa............................................. 22 16 1 1 II 11 24 23 20 20 18 18 U.A.R. (Egypt)........................................ 0 1 1 1 0 12 14 10 10 11 17 Other Africa...................................... 7 6 7 9 9 29 28 30 30 27 30 Total.................................................. 32 23 20 22 22 68 66 61 61 58 66 Other countries: Australia................................................... 25 21 23 31 35 36 33 40 40 40 45 All other................................................... 9 6 7 4 5 7 7 8 8 7 10 Total............................................... 34 27 29 35 40 43 40 49 48 47 55 International and regional ......................... * * * * ♦ * * « ♦ ♦ I Grand total....................................... 740 779 r807 r846 882 2,411 2,406 2,397 2,294 2,468 2,462 r Revised. mercial concerns and other nonbanking institutions in the United States. 1 Data differ from that shown for December in preceding column be­ Data exclude claims held through U.S. banks, and intercompany accounts cause of changes in reporting coverage. between U.S. companies and their foreign affiliates. Note.—Reported by exporters, importers, and industrial and com­ See also Note to Table 2. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 173 13. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l i l n a a b r l s e P fo a r y i e n a i b g l n e Total P d a o y i l n l a a b r l s e Deposits with currencies banks abroad Other in reporter’s name 1962—June................................................................................... 665 551 114 1,974 1,598 208 168 Sept................................................................................... 678 554 123 2,136 1,685 197 254 Dec.................................................................................... 637 508 129 2’051 1,625 214 212 Dec. *................................................................................ 644 513 130 2,’098 1'668 217 212 1963—Mar.................................................................................... 614 470 144 2,113 1,712 201 200 Mar. 1............................................................................... 616 472 144 2’162 1 ’758 204 200 June.................................................................................. 674 529 146 2,’282 1,877 222 183 Sept................................................................................... 691 552 139 2'257 1,830 225 202 Dec.................................................................................... 626 478 148 2'131 1,739 201 191 Dec.2.............................................................................. 626 479 148 2’ 188 1,778 199 211 1964-—Mar................................................................................ 631 475 156 2,407 1,887 239 282 June.................................................................................. 622 471 151 2'482 2,000 220 262 June2................................................................................. 585 441 144 2,430 1,952 219 260 Sept................................................................................... 650 498 152 2^719 2'168 249 302 Dec.................................................................................... 695 553 141 2,776 2,306 189 281 Dec.4................................................................................. 700 556 144 2'853 2’338 205 310 1965—Mar.................................................................................. 695 531 165 2,612 2,147 189 277 June................................................................................... 740 568 172 2'411 1’966 198 248 Sept................................................................................... 779 585 195 2'406 1 349 190 267 Dec.................................................................................... r807 r600 207 2,397 2,000 167 229 Dec.4............................................................................... '807 ^600 207 2,294 1 '906 166 222 1966—Mar................................................................................ r846 r6l4 232 2,468 2,027 2U 229 June................................................................................. 882 648 234 2,462 2,056 191 215 1 Includes data from firms reporting for the first time. of claims; for previous series the exemption level was $100,000. 2 Includes data from firms reporting for the first time and claims pre­ 4 Data differ from that shown for December in line above because of viously held but not reported. changes in reporting coverage. 3 Includes reports from firms having $500,000 or more of liabilities or 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (In millions of dollars) Claims Country or area End of period Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa1 ot A h l e l r1 America 1963—June....................... 159 882 12 88 28 145 101 192 115 85 99 18 Sept........................ 153 881 14 85 42 127 102 188 123 87 98 16 Dec.2..................... 148 734 16 83 56 61 69 154 90 93 96 16 1964—Mar........................ 143 761 30 85 58 64 74 158 89 94 96 13 June3..................... 140 815 68 92 64 67 78 145 94 99 94 14 Sept........................ 112 832 64 102 90 68 74 142 90 96 93 13 Dec......................... 107 962 51 109 95 215 72 135 89 95 88 14 Dec,4..................... 107 1,081 56 116 190 215 73 137 89 98 91 15 1965—Mar........................ 115 1,075 35 121 203 220 74 137 81 96 91 18 June....................... 110 1’081 31 118 208 221 70 144 85 96 91 17 Sept........................ 120 1,101 31 116 230 217 74 138 89 96 91 18 Dec......................... 136 1,169 31 112 233 209 69 196 98 114 89 17 Dec.4..................... 138 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar........................ 166 1,156 27 124 239 208 61 206 98 87 87 19 June....................... 186 1,207 27 167 251 205 61 217 90 90 86 14 1 Until June 1963 Africa included in “All other.” $500,000, data exclude $3 million of liabilities and $3 million of claims 2 Data include $12 million of claims reported by firms reporting for held by firms previously reporting but now exempt. the first time and claims previously held but not reported. 4 Data differ from that shown for December in line above because of 3 As a result of an increase in the exemption level from $100,000 to changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

174 U.S. BALANCE OF PAYMENTS JANUARY 1967 U.S. BALANCE OF PAYMENTS (In millions of dollars) 1965 1966 Item 1963 1964 1965 II III IV 1r IP UP Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total i........................ 32,339 36,958 38,993 10,136 10,016 10,065 10,495 10,572 10,948 Merchandise...................................................... 22,071 25,297 26,276 6,798 6,826 7,027 7,171 7,111 7.439 Military sales............................................................ 657 747 844 229 199 216 198 260 215 Transportation. ....................................................... 2,115 2,324 2,415 620 617 632 640 627 660 Travel..................................................................... 934 1 ,095 1 ,212 295 305 330 333 334 377 Investment income receipts, private...................... 4,156 4,932 5,389 1,470 1,321 1,176 1,381 1,430 1 ,451 Investment income receipts, Govt.......................... 498 460 512 146 149 78 149 149 147 Other services.......................................................... 1,908 2, 103 2,345 578 599 606 623 661 659 Imports of goods and services—-Total........................ -26,442 -28,468 -32,036 -8,087 -8,245 -8,540 -8,926 -9,212 -9,762 Merchandise........................................................... -16,992 -18,621 -21 ,488 -5,481 -5,595 -5,756 -6,004 -6,262 -6,659 Military expenditures.............................................. -2,936 -2,834 -2,881 -701 -745 -771 -854 -899 -937 Transportation......................................................... -2,316 -2,462 -2,691 -686 -661 -706 -719 -712 -728 Travel....................................................................... -2,090 -2,201 -2,400 -586 -603 -614 -643 -644 -668 Investment income payments................................. -1,271 -1,404 -1,646 -404 -411 -458 -436 -436 -502 Other services.......................................................... -837 -946 -930 -229 -230 -235 -270 -259 -268 Balance on goods and services1................................... 5,897 8,490 6,957 2,049 1,771 1,525 1,569 1,360 1,186 Remittances and pensions............................................ -867 -879 -994 -288 -244 -235 -236 -236 -278 1. Balance on goods, services, remittances and pensions........................................................ 5,030 7,611 5,963 1,761 1,527 1,290 1,333 1,124 908 2. U.S. Govt, grants and capital flow, net.................. -3,581 -3,560 -3,375 -949 -743 -881 -948 -964 -794 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims....... -4,551 -4,263 -4,277 -1,141 -1,117 -1,030 -1,156 -1,167 -1,189 Scheduled repayments on U.S. Govt, loans. . . 644 580 681 187 191 126 205 196 169 Nonscheduled repayments and selloffs............. 326 123 221 5 183 23 3 7 226 3. U.S. private capital flow, net................................. -4,456 -6,523 -3,690 -346 -827 -912 -928 -1,094 -713 Direct investments ............................................... -1,976 -2,416 -3,371 -859 -569 -731 -687 -976 -700 Foreign securities................................................ -1,104 -677 -758 -62 -285 -209 -324 6 -89 Other long-term claims: Reported by banks...................................... -754 -941 -231 169 -58 126 122 -33 85 Reported by others........................................ 163 -343 -91 -6 -20 -71 -17 -53 -29 Short-term claims: Reported by banks...................................... -781 -1,523 325 144 51 109 143 - 91 27 Reported by others......................................... -4 -623 436 268 54 -136 -165 53 -7 4. Foreign capital flow, net, excluding change in liquid assets in U.S..................................... 689 685 194 -131 -251 251 289 960 263 Long-term investments....................................... 326 109 -149 -309 -235 110 298 974 131 Short-term claims................................................ -23 113 146 68 39 44 39 57 77 Nonliquid claims on U.S. Govt, associated with: Military contracts............................................ 347 228 314 130 -16 149 71 -46 69 U.S. Govt, grants and capital........................ 94 50 -85 -25 -34 -18 -64 - 1 -12 Other specific transactions............................. 1 208 -25 6 -5 -28 -2 2 21 Other nonconvertible, nonmarketable, me­ dium-term U.S. Govt, securities3............. -56 -23 -7 -1 * -6 -53 -26 -23 5. Errors and unrecorded transactions........................ -352 -1,011 -429 -109 -240 -80 -297 -167 118 Balances A. Balance on liquidity basis Seasonally adjusted (= 1 + 24*3 + 4 + 5)............ -2,670 -2,798 -1,337 226 -534 -332 -551 -141 -218 Less: Net seasonal adjustments........................ 37 472 3 -503 11 493 Before seasonal adjustment................................. -2,670 -2,798 -1,337 189 -1,006 -335 -48 -152 -711 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted......................... -2,670 -2,798 -1,337 226 -534 -332 -551 -141 -218 Plus Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad............................. 470 1,454 116 -30 707 -546 232 499 1,173 Other private residents of foreign countries.. 385 345 306 56 65 50 138 44 87 International and regional organizations other than IMF........... ...... -236 -245 -290 -29 -24 -173 -35 -362 9 Less: Change in certain nonliquid liabilities to foreign central banks and govts................ -7 302 100 -16 -18 157 25 254 105 Balance B, seasonally adjusted.......................... -2,044 -1,546 -1,305 239 232 -1,158 -241 -214 946 Less: Net seasonal adjustments........................ 184 508 -33 -643 166 519 Before seasonal adjustment................................. -2,044 -1,546 -1,305 55 -276 -1,125 402 -380 427 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE 175 U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1965 1966 Item 1963 1964 1965 II III IV 1r IIP' Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis..................... 2,670 2,798 1,337 -189 1,006 335 48 152 711 Change in U.S. official reserve assets (increase, —)... ................................................ 378 171 1,222 68 41 271 424 68 82 Gold................................................................ 461 125 1,665 4 590 124 119 68 209 173 Convertible currencies................................. - 113 -220 — 349 -56 — 413 178 222 -163 -426 IMF gold tranche position............................ 30 266 —94 4 -466 330 -26 134 22 335 Change in liquid liabilities to all foreign accounts 2,292 2,627 115 -257 965 64 -376 84 629 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities $............................................... 703 375 123 122 — 50 -366 176 -226 Marketable U.S. Govt, bonds and notes 5. 466 -59 -20 -15 -2 -19 -5 6 -254 Deposits, short-term U.S. Govt, securities, etc..................................................... 504 757 - 154 —92 125 740 -61 1 210 - 162 IMF (gold deposits)....................................... 34 8 26 131 18 28 Commercial banks abroad........................... 470 1,454 116 -206 697 -539 404 316 1,169 Other private residents of foreign countries. 385 345 306 82 72 48 109 65 97 International and regional organizations other than IMF................................. -236 -245 — 290 -26 — 57 -142 -38 -355 -23 B. Official reserve transactions.................................. 2,044 1,546 1,305 -55 276 1,125 -402 380 -427 Change in U.S. official reserve assets (increase, —)...................................................... 378 171 1,222 68 41 271 424 68 82 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)........................................................ 1,673 1,073 - 17 -107 253 697 -851 58 -614 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations.................. 9 148 -38 -29 — 16 28 43 275 82 Of U.S. Govt.....“.................................... -16 154 138 13 -2 129 -18 -21 23 1 Excludes transfers under military grants. 5 With original maturities over I year. 2 Excludes military grants. 3 Includes certificates sold abroad by Export-Import Bank. Note,—Dept, of Commerce data. Minus sign indicates net payments 4 Reflects S259 million payment of gold portion of increased U.S. (debits); absence of sign indicates net receipts (credits). subscription to IMF. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports i Imports 2 Export surplus Period 1963 1964 1965 1966 (963 1964 1965 1966 1963 1964 (965 1966 Month: Jan..................... 3 986 2,040 3 1,215 2,249 3 1,100 1,418 3 1,193 1,936 3 -114 622 3 22 313 Feb..................... 32,124 2,058 3 1,599 2,335 3 1,510 1,459 3 1,600 1,993 3 614 599 3 _| 342 Mar.................... 3 1,958 2,075 3 2,755 2,594 3 1,485 1,518 3 1,861 2,073 3 473 557 3 894 522 Apr..................... 31,914 2,061 3 2,380 2,331 3 1,415 1 ,537 3 1,833 2,138 3 499 524 3 547 193 May................... 1,895 2,047 3 2,260 2,364 1 ,416 1,530 3 1,789 ’■2,054 479 517 3 471 G10 June................... 1,803 2,077 3 2,230 2,486 1,431 1,514 3 1,830 2,115 372 563 3 400 371 July.................. 1,841 2,119 2,256 2,461 1,450 1,573 4 1,741 2,207 391 546 4 515 254 Aug.................... 1,922 2,100 2,333 2,461 1,497 1,608 1,854 2,148 425 492 479 313 Sept.................... 1,958 2,261 2,324 2,580 1 ,443 1,563 1,865 2,311 515 698 459 269 Oct..................... 1,967 2,156 2,342 2,621 1,455 1,551 1,885 2,260 512 605 457 361 Nov.................... 1,966 2,206 2,408 2,518 1,466 1,698 1,952 2,205 500 3 508 456 313 Dec..................... 2,091 2,426 2,356 1,480 1,642 1,892 ................ 611 3 784 464 ............... Quarter: I...................... 3 5,068 6,173 3 5,569 7,178 3 4,095 4,395 3 4,654 6,002 3 973 1,778 39I5 1,177 II........................ 35,612 6,185 3 6,870 7,181 3 4,262 4,581 3 5,452 r6,308 3 1,350 1 ,604 3 1 ,418 ’•874 Ill....................... 5,721 6,480 6,913 7,501 4,390 4,744 4 5.459 6,665 1 ,331 1,736 4 1,453 836 IV....................... 6,024 36,788 7,106 4,401 3 4,891 5,729 1,623 3 1,897 1,377 Year 5..................... 22,424 25,671 26,567 .............1..7,142 18,684 21,293 ...............5.,282 6,987 5,274 ................ 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. 3 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

176 MONEY RATES JANUARY 1967 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Dec. 31, 1965 Rate as of Country 1966 Dec. 31, 1966 Per Month cent effective Jan. Feb. Mar. Apr, May June July Aug. Sept. Oct. Nov. Dec. Argentina ............................ 6.0 Dec. 1957 6.0 Austria ......... 4.5 June 1963 4.5 Bdginm .............. 4.75 July 1964 5.25 5.25 Brazil ....................... 12,0 Jan. 1965 12,0 Burma ..................... 4.0 Feb. 1962 4.0 Canaria 1 ............................. 4.75 Dec. 1965 5.25 5.25 Ceylon 5.0 May 1965 5.0 Chile 2 . .......... 15.30 July 1965 15.86 15.84 15.84 Colombia.............................. 8.0 May 1963 8.0 Cojtfl R ica ................... 3.0 Apr. 1939 3.0 Denmark. . ,......................... 6.5 June 1964 6.5 Bcnador ........ ... 5.0 Nov. 1956 5.0 Fl Salvador . ................ 4.0 Aug. 1964 4.0 Finland ............ . 7.0 Apr. 1962 7.0 France . .............................. 3.5 Apr, 1965 3.5 Cepmany Fed Rep. of. . 4.0 Aug. 1965 5.0 5.0 Chana, . . .. ,...................... 4.5 Oct. 1961 7.0 7.0 Cfeece .................................. 5.5 Jan. 1963 5.5 Honduras 3........................... 3.0 Jan. 1962 3.0 Ireland .................. 8.0 Jan. 1965 9.0 9.0 India . ................................ 6.0 Feb. 1965 6.0 Indonesia............................... 9.0 Aug. 1963 9.0 Iran , .......................... 4.0 Oct. 1963 5.0 5.0 Ireland................................... 3.88 Dec. 1965 5.75 5.91 5.94 5.87 5.94 6.87 6.94 7.00 6.81 6.87 6.87 Israel ....................... 6.0 Feb. 1955 6.0 Italy....................................... 3,5 June 1958 3.5 Tama ica................................. 5.0 Nov. 1964 5.5 5.5 Tapan ..................... 5.48 June 1965 5.48 Korea - - ......................- - 28.0 Dec. 1965 28.0 Mexico ............................... 4.5 June 1942 4.5 Netherlands. . ..................... 4.5 June 1964 5.0 5.0 New T.ealand ....................... 7.0 Mar. 1961 7.0 bii'caragna ..................... 6.0 Apr. 1954 6.0 Norway,............................... 3.5 Feb. 1955 3.5 Pakistan . ....................... 5.0 June 1965 5.0 9.5 Nov. 1959 9.5 Philippine Republic 4.......... 6.0 Jan. 1962 4.75 4.75 Portugal................................ 2.5 Sept. 1965 2.5 South Africa......................... 5.0 Mar. 1965 6.0 6.0 Spain ...................... 4.0 June 1961 4.0 Sweden.......................... 5.5 Apr. 1965 6.0 6.0 Switzerland........................... 2.5 July 1964 3.5 3.5 Taiwan 5............................... 14.04 July 1963 14.04 Thailand............................... 5.0 Oct. 1959 5.0 Tunisia........................ 4.0 Oct. 1962 5.0 5.0 Turkey ....................... 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom.................. 6.0 June 1965 7.0 7.0 Venezuela ............................ 4.5 Dec. I960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some continue to be .25 of 1 per cent above latest weekly Treasury bill tender of these countries follow: average rate, but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction; the average rate charged by banks in the previous half year. Old redis­ Brazil—8 per cent for secured paper and 4 per cent for certain agricultural counts remain subject to old rates provided their amount is reduced by paper; one-eighth each month beginning with May 1, 1959, but the rates are Colombia—5 per cent for warehouse receipts covering approved lists of raised by 1.5 per cent for each month in which the reduction does not products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent occur. for rediscounts in excess of an individual bank’s quota; 3 Rate shown is for advances only. Costa Rica—5 per cent for paper related to commercial transactions 4 Beginning with June 1, 1962, the rediscount rate for commercial (rate shown is for agricultural and industrial paper); bank loans financing the purchase of surplus agricultural commodities Ecuador—6 per cent for bank acceptances for commercial purposes; under U.S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, Indonesia—-various rates depending on type of paper, collateral, com­ 1962, the rediscount rate for commercial bank financing of 9 categories modity involved, etc.; of development loans was reduced from 6 to 3 per cent. Japan—penalty rates (exceeding the basic rate shown) for borrowings 5 Rate shown is for call loans. from the central bank in excess of an individual bank’s quota; Peru—8 per cent for agricultural, industrial, and mining paper; and Note.—Rates shown are mainly those at which the central bank either Venezuela—4 per cent for rediscounts of certain agricultural paper and discounts or makes advances against eligible commercial paper and/or for advances against govt, bonds or gold and 5 per cent on advances govt, securities for commercial banks or brokers. For countries with against securities of Venezuelan companies. more than one rate applicable to such discounts or advances, the rate Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1967 MONEY RATES; ARBITRAGE 177 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n l s s u t , h ry s ’ m Da o d y n a - y e t y o 2 ­ 3 B a a m a c n n c o c e k n e p e s t t r h , ­ s s ’ 3 T m r b e i o a l s l n s u t , h ry s D m a d o y a n - y e t o y ­ a B l d l e o a p w n o o k n a s e n i r t c s s e ’ m D o a d y n a - e y t y o 3 ­ T 6 r d b e 0 a i a - l y l s 9 s s u 0 , 4 r y m Da o d y a n - y e t y o­ 5 3 T m r b e i o a l s l n s u t , h r y s D m a d o y a n - y e t o y ­ d P is r r c i a v o t a e u t n e t 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—Dec............. 3.85 3.84 6.84 6.62 5.87 5 00 4.16 263 2.88 3.68 2.09 2.68 1965—Nov............ 4.17 3.89 5.91 5.45 4,93 4 00 4.62 3.88 4.19 4.16 3.91 3.00 Dec............. 4.45 4.03 5.91 5.48 4.79 4 00 4.48 3.88 4.00 4.29 3.47 3.00 1966—Jan.............. 4.61 4,05 5.9! 5.50 4.86 4 00 3.83 4 00 4.25 4.32 3.72 3.50 Feb............ 4.68 3.97 5.95 5,57 4.86 4 00 4 34 4 00 4.50 4.34 4.25 3.50 Mar............ 4.87 4.33 5.97 5.61 4.76 4.00 4 + 5 4.00 5.19 4.48 4.05 3.50 Apr............. 5.09 5. 10 5.97 5.62 4.94 4 00 4 34 4 00 5.19 4.50 4.33 3.50 May............ 5.10 5.04 5.97 5.65 4.96 400 483 5.00 5.06 4.87 4.90 3.50 June........... 5.06 4.99 5.94 5.69 4.85 4 00 4.79 5.00 6.31 4.95 4.87 3.50 July............ 5.07 5.01 6.56 6.31 5.48 4 58 4.79 5.00 5.75 4.94 5.11 3.88 Aug............. 5.07 4.75 6.97 6.70 5.98 5 00 4.78 5.00 5.44 4.90 4.65 4.00 Sept............ 5.03 4.82 7.01 6.75 6.05 5 00 4 85 5.00 5.50 4.73 3.89 4.00 Oct.............. 5.13 4.89 6.97 6.61 6.03 5 00 5.26 5.66 5.81 4.96 4.70 4,00 Nov............ 5.18 4.94 6.93 6,62 6.02 5.00 5.41 5.00 5.25 5.00 5.22 4.00 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. J Rate shown is on private securities. Note—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Date K U in n g i d te o d m Spread P d ( r i + s e c m ) o i u o u n r m t in ( c f N e a n v e t o t i r v e Canada Spread d ( ( i + s - c ) ) o u o o n n r t in ( c f N e a n v e t o t i r v e q ( u a b o U d a t s j a . . S i t s i . t ) o o n U St n a i t t e e s d L ( o f n a o d v f o o n r ) f ( p o - o rw ) u n a o r d n d Lon o d f o n) qu A o in t s e d qu A o U d t j . a . S t . i t o o n U St n a i t t e e s d C ( a fa n o v a f o d r a ) C f d o a o n rw l a l d a a r i r a s d n Can o a f d a) Canada basis 1966 Aug. 5.............. 6.53 4.81 1,72 -1.83 -.11 4.99 4.86 4.81 + .05 + .04 + .09 12.............. 6.53 4.88 1.65 -1.61 + .04 5.05 4.92 4.88 + .04 + .19 + .23 19.............. 6.53 5.06 1.47 -1.03 + .44 5.09 4.96 5.06 -.10 + .28 + .18 26.............. 6.57 4.99 1.58 -1.05 + .53 5.10 4.97 4.99 -.02 + .04 + .02 Sept. 2.............. 6.60 5.04 1.56 -1.11 + .45 5.02 4,89 5,04 -.15 + .09 -.06 9.............. 6,60 5.16 1.44 -.95 + .49 5.00 4.87 5.16 -.29 + .09 -.20 16.............. 6.60 5.42 1.18 -.85 + .33 5.05 4,92 5.42 -.50 + .41 -.09 23.............. 6,60 5.47 1.13 -.90 + .23 4.97 4.84 5.47 -.63 + .32 -.31 30........ 6.60 5.30 1.30 -.94 + .36 5.00 4.87 5.30 -.43 + .32 -.11 Oct. 7............. 6.52 5.34 1.18 -.77 + .41 5.09 4.96 5.34 -.38 + .41 + .03 14............. 6.44 5.45 .99 -.78 + .21 5.11 4.98 5.45 -.47 + .41 -.06 21............. 6.47 5.31 1.16 -.52 + .64 5.14 5.01 5.31 -.30 + •37 + .07 28.............. 6.35 5.21 1.14 -.65 + .49 5.19 5.05 5.21 -.16 + .24 + .08 Nov. 4.............. 6.38 5.29 1.09 -.60 + .49 5.22 5.08 5.29 -.21 + .28 + .07 10.............. 6.38 5.38 1.00 -.75 + .25 5.22 5.08 5.38 -.30 + .26 -.04 18.............. 6.57 5.32 1,25 -.66 + .59 5.19 5.05 5.32 -.27 + .41 + .14 25.............. 6.60 5.25 I .35 -.54 + .81 5.18 5.04 5.25 -.21 + .41 + .20 Dec. 2.............. 6.57 5.13 1.44 -.52 + .92 5.15 5.01 5.13 -.12 + .37 + .25 9.............. 6.53 5.14 1.39 -.73 + .66 5. 13 5.00 5.14 -.14 + .41 + .27 16.............. 6.47 4.88 1.59 -.59 + 1.00 5.07 4.94 4.88 + .06 + .33 + .39 23.............. 6.47 4.77 1.70 -.67 + 1.03 4.95 4.82 4.77 + .05 + .26 + .31 30.............. 6.35 4.79 1.56 -.74 + .82 4.96 4.83 4.79 + .04 + .15 + .19 1967 Jan. 6............ 6.29 4.74 1.55 -.55 + 1.00 4.94 4.81 4.74 + .07 -.08 -.01 Note.— Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates II a.m. Friday; U.K. 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. 1 260, 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

178 FOREIGN EXCHANGE RATES JANUARY 1967 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Argentina Austria Belgium Canada Ceylon Denmark Finland (peso) (schilling) (franc) (dollar) (rupee) (krone) (markka) (pound) (dollar) 1961 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .3110 1962 .9080 223.73 3.8685 2.0093 93.561 21.034 14.490 .3107 1963 .7245 223.10 3.8690 2.0052 92.699 21.015 14.484 131.057 1964 .7179 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 1965 .5952 222.78 3.8704 2.0144 92.743 20.959 14.460 31.070 1966 .4869 2223.41 JIII.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1965-—Dec................................................ .5322 223.27 ................3..8680 2.0141 92.939 21.003 14.520 31.061 1966-—Jan.. . . . 5291 223.42 3.8673 2.0115 93.035 21.0(2 (4.518 31.060 Feb.... .5284 2223.38 Hl 1.62 3.8669 2.0107 92.895 21.005 14.496 31.059 Mar.. . .5290 111.36 3.8676 2.0087 92.901 20.959 14.49) 31.059 Apr.... .5292 111.29 3.8677 2.0054 92.836 20.945 14.485 31.064 May... . 5268 111.25 3.8681 2.0089 92.863 20.941 14.459 31.060 June... . 4926 111.15 3.8694 2.0079 92.876 20.926 14.438 31.062 July... .4896 111.11 3.8705 2.0110 93.017 20.921 14.444 31.063 Aug.. . <4691 1 11. 11 3.8718 2.0122 92.992 20.929 14.436 31.062 Sept.. . . 4594 111.13 3.8720 2.0035 92.904 20,928 (4.471 31.063 Oct.... . 4590 111.22 3.8700 2.0001 92.631 20.929 14.488 31.062 Nov.. . 5.4106 111.20 3.8668 2.0012 92.398 20.927 (4.474 31.062 Dec.... .4039 HI. 16 3.8651 1.9987 92.319 20.926 (4.484 31.062 Period F (f r r a a n n c c e ) ( 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 en an ) ( M do s a l i l l a a a y r) ­ M (p e e x s i o c ) o ( e g N r u l i a e l n t d h d e ­ r s ) 1961 20.384 24.903 20.980 280.22 .16099 . 27690 32.659 8.0056 27.555 1962 20.405 25.013 21.026 280.78 .16107 .27712 32.757 8.0056 27.755 1963 620.404 25.084 20.966 280.00 .16087 .27663 32.664 8.0056 27.770 1964 20.404 25.157 20.923 279.2 1 .16014 .27625 32.566 8.0056 27.724 1965 20.401 25.036 20.938 279.59 .16004 .27662 32.609 8.0056 27.774 1966. 20.352 25.007 ’16.596 279.30 .16014 .27598 32.538 8.0056 27.630 1965-—Dec................................................. 20.402 24.992 20.994 280.21 .16004 .27689 32.666 8.0056 27.724 1966-—Jan.. . . 20.399 24.926 21.005 280.39 .16002 .27695 32.678 8.0056 27.659 Feb.... 20.401 24.904 20.998 280.25 .16003 .27631 32.671 8.0056 27,603 Mar.. . 20.402 24.914 20.949 279.52 .16003 .27615 32.600 8.0056 27.618 Apr.... 20.403 24.902 20.936 279.34 .16011 .27591 32.588 8.0056 27.538 May... 20.402 24.894 20.928 279.23 .16010 .27603 32,588 8.0056 27.547 June.., 20.403 24.963 714.393 278.98 .16017 .27584 32.545 8.0056 27.645 July... 20.403 25.046 13.248 278.88 .16028 .27574 32.488 8.0056 27.719 Aug.. . 20.394 25.056 13.250 278.88 .16039 .27577 32.467 8.0056 27.694 Sept... 20.314 25.069 13.252 278.93 .16029 .27574 32.458 8,0056 27.627 Oct.. .. 20.247 25.109 13.260 279.16 .16003 .27573 32.473 8.0056 27.625 Nov... 20.231 25.150 13.258 279.11 .16003 .27578 32.453 8.0056 27.641 Dec................................................. 20.199 25.169 13.256 279.01 . 16011 .27577 32.442 8.0056 27.642 South Africa United New Portu­ Switz­ Period Z (p e o a u la n n d d ) N (k o r r o w ne ay ) (esc g u al d o) (pound) (rand) (p S e p s a e i t n a) ( S k w ro ed n e a n ) ( e f r r l a a n n c d ) (p K d o o i u n m n g d - ) 1961. 277.45 14.000 3.4909 279.48 139.57 I.6643 19.353 23.151 280.22 1962. 278.00 14.010 3.4986 139.87 1.6654 19.397 23.124 280.78 1963. 277.22 13.987 3.4891 139.48 1.6664 19.272 23.139 280.00 1964. 276.45 13.972 3.4800 139.09 1.6663 19.414 23.152 279.21 1965. 276.82 13.985 3.4829 139.27 1.6662 19.386 23.106 279.59 1966. 276.54 13.984 3.4825 .................. 139.13 1.6651 19.358 23.114 279.30 1965-—Dec.... ........................................... 277.43 13.999 3.4922 .................. 139.58 1.6663 19.327 23.162 280.21 1966-—Jan.. .. 277.61 13.998 3.4932 139.67 1.6661 19.339 23.102 280.39 Feb.... 277.48 13.992 3,4921 139.60 i.6660 19.346 23.077 280.25 Mar.. . 276.75 13.981 3.4867 139.24 1.6659 19.384 23.040 279.52 Apr.... 276.58 13.976 3.4834 139.15 1.6659 19.385 23.102 279.34 May... 276.47 13.971 3.4829 139.09 1.6660 19.398 23.167 279.23 June.. . 276.22 13.971 3.4806 138.97 1.6658 19.383 23.169 278.98 July... 276.12 13.974 3.4777 138.92 1.6655 19.352 23.164 278.88 Aug... 276.12 13.988 3.4776 138.92 1.6639 19.358 23.110 278.88 Sept.. . 276.17 13.989 3.4773 138.95 1.6639 19.345 23.(02 278.93 Oct.... 276.40 13.993 3.4807 139.06 1.6641 19.330 23.064 279.16 Nov.. . 276.35 13.995 3.4794 139.03 1.6638 18.336 23.141 279.11 Dec.... ........................................... 276.25 13.989 3.4783 .................. 138.99 1.6638 19.327 23.129 279.01 ' A new markka, equal to 100 old markkas, was introduced on Jan, 1, r> Effective Jan. 1, 1963, the franc again became the French monetary 1963. unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. 2 Based on quotations through Feb. 1 J, 1966. 7 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to 3 Effective Feb. 14, 1966, Australia adopted the decimal currency 7.5 rupees per U.S. dollar. Quotations not available June 6 and 7. system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. Note.—Averages of certified noon buying rates in New York for 4 Quotations not available Aug. 8 and 9. cable transfers. For description of rates and back data, see “International 5 Quotations not available Nov. 4 and 7. Finance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Wm. McC. Martin, Jr., Chairman J. L. Robertson, Vice Chairman Chas. N. Shepardson J. Dewey Daane Sherman J. Maisel George W. Mitchell Andrew F. Brimmer Ralph A. Young, Senior Adviser to the Board Daniel H. Brill, 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 Frederic Solomon, Director LEGAL DIVISION Brenton C. Leavitt, Assistant Director Howard H. Hackley, General Counsel James C. Smith, Assistant Director David B. Hexter, Associate General Counsel Lloyd M. Schaeffer, Chief Federal Reserve Thomas J. O’Connell, Assistant General Examiner Counsel Frederick R. Dahl, Assistant Director Jerome W. Shay, Assistant General Counsel Jack M. Egertson, Assistant Director Wilson L. Hooff, Assistant General Counsel Charles C. Walcutt, Assistant Chief Federal Reserve Examiner DIVISION OF RESEARCH AND STATISTICS DIVISION OF PERSONNEL ADMINISTRATION Daniel H. Brill, Director Albert R. Koch, Deputy Director Edwin J. Johnson, Director J. Charles Partee, Associate Director John J. Hart, Assistant Director Kenneth B. Williams, Adviser Stephen H. Axilrod, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES Lyle E. Gramley, Associate Adviser Joseph E. Kelleher, Director Stanley J. Sigel, Associate Adviser Harry E. Kern, Assistant Director Tynan Smith, Associate Adviser James B. Eckert, Assistant Adviser OFFICE OF THE CONTROLLER Murray S. Wernick, Assistant Adviser John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE Robert Solomon, 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 Lawrence H. Byrne, Jr., Director John E. Reynolds, Adviser Lee W. Langham, Assistant Director Ralph C. Wood, Adviser David S. Staiger, Assistant Director 179 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN • JANUARY 1967 FEDERAL OPEN MARKET COMMITTEE Wm. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Karl R. Bopp J. Dewey Daane George W. Mitchell Andrew F. Brimmer W. Braddock Hickman J. L. Robertson George H. Clay Watrous H. Irons Chas. N. Shepardson Sherman J. Maisel Robert C. Holland, Secretary Merritt Sherman, Assistant Secretary George Garvy, Associate Economist Kenneth A. Kenyon, Assistant Secretary Ralph T. Green, Associate Economist Arthur L. Broida, Assistant Secretary Albert R. Koch, Associate Economist Charles Molony, Assistant Secretary Maurice Mann, Associate Economist Howard H. Hackley, General Counsel J. Charles Partee, Associate Economist David B. Hexter, Assistan't General Counsel Robert Solomon, Associate Economist Daniel H. Brill, Economist Clarence W. Tow, Associate Economist David P. Eastburn, Associate Economist Ralph A. Young, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL John Simmen, first federal reserve Henry T. Bodman, seventh federal district reserve district R. E. McNeill, Jr., second federal A. M. Brinkley, Jr., eighth federal reserve district reserve district Harold F. Still, Jr., third federal reserve John A. Moorhead, ninth federal DISTRICT reserve district John A. Mayer, fourth federal Roger D. Knight, Jr., tenth federal reserve district reserve district J. Harvie Wilkinson, Jr., fifth federal Robert H. Stewart, III, eleventh federal reserve district reserve district Sam M. Fleming, sixth federal reserve Frederick G. Larkin, Jr., twelfth federal district reserve district Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 181 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Deputy Chairman First Vice President in charge of branch Zip code Boston........................02106 Erwin D. Canham George H. Ellis Charles W. Cole Earle O. Latham New York............... ...10045 Everett N. Case Alfred Hayes Kenneth H. Hannan William F. Treiber Buffalo................ ...14240 Robert S. Bennett A. A. Maclnnes, Jr. Philadelphia......... ...19101 Willis J. Winn Karl R. Bopp Bayard L. England Robert N. Hilkert Cleveland................ ...44101 Joseph B. Hall W. Braddock Hickman Logan T. Johnston Walter H. MacDonald Cincinnati.......... ...45201 Barney A. Tucker Fred O. Kiel Pittsburgh..............15230 F. L. Byrom Clyde E. Harrell Richmond............... ...23213 Edwin Hyde Edward A. Wayne Wilson H. Elkins Aubrey N. Heflin Baltimore............ ...21203 E. Wayne Corrin Donald F. Hagner Charlotte............ ...28201 James A. Morris Edmund F. MacDonald Atlanta.................... ...30303 Jack Tarver Harold T. Patterson Edwin I. Hatch Monroe Kimbrel Birmingham.......35202 C. Caldwell Marks Edward C. Rainey Jacksonville........ ...32201 Douglas M. Pratt Thomas A. Lanford Nashville............ ..37203 Robert M. Williams Robert E. Moody, Jr. New Orleans.... ...70160 Frank G. Smith, Jr. Morgan L. Shaw Chicago.................. ...60690 Franklin J. Lunding Charles J. Scanlon Elvis J. Stahr Hugh J. Helmer Detroit................ ..48231 Guy S. Peppiatt Russel A. Swaney St. Louis................ ...63166 Frederic M. Peirce Darryl R. Francis Smith D. Broadbent, Jr. Dale M. Lewis Little Rock........ ...72203 Reeves E. Ritchie John F. Breen Louisville............ ..40201 C. Hunter Green Donald L. Henry Memphis............ ...38101 John W. Menges Minneapolis............ ...55440 Joyce A. Swan Hugh D. Galusha, Jr. Robert F. Leach M. H. Strothman, Jr. Helena................ ...59601 Edwin G. Koch Clement A. Van Nice Kansas City............ ...64198 Dolph Simons George H. Clay Dean A. McGee John T. Boysen Denver................ ...80217 Cris Dobbins John W. Snider Oklahoma City.. ...73125 C. W. Flint, Jr. Howard W. Pritz Omaha................ ...68102 Henry Y. Kleinkauf George C. Rankin Dallas...................... ..75222 Carl J. Thomsen Watrous H. Irons Max Levine Philip E. Coldwell El Paso............... ..79999 Gordon W. Foster Fredric W. Reed Houston.............. ..77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio.......78206 Harold D. Herndon Carl H. Moore San Francisco........ . .94120 Frederic S. Hirschler Eliot J. Swan S. Alfred Halgren H. Edward Hemmings Los Angeles........ ...90054 Arthur G. Coons Paul W. Cavan Portland.............. ...97208 Graham J. Barbey William M. Brown Salt Lake City......84110 Royden G. Derrick Arthur L. Price Seattle................. ...98124 William McGregor Erwin R. Barglebaugh Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS Available 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 accom­ pany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic releases, see pp. 1866-69 of the December 1966 Bulletin. (Stamps and coupons not accepted). The Federal Reserve System—Purposes and Supplement to Banking and Monetary Statis­ Functions. 1963. 297 pp. tics. Sec. 1. Banks and the Monetary System. 1962. 35 pp. $.35. Sec. 5. Bank Debits. 1966. Annual Report. 36 pp. $.35. Sec. 6. Bank Income, 1966. 29 pp. Federal Reserve Bulletin. Monthly. $6.00 per $.35. Sec. 9. Federal Reserve Banks. 1965. 36 annum or $.60 a copy in the United States and pp. $.35. Sec. 10. Member Bank Reserves and its possessions, Bolivia, Canada, Chile, Co­ Related Items. 1962. 64 pp. $.50. Sec. 11. lombia, Costa Rica, Cuba, Dominican Republic, Currency. 1963. 11 pp. $.35. Sec. 12. Money Ecuador, Guatemala, Haiti, Republic of Hon­ Rates and Securities Markets. 1966. 182 pp. duras, Mexico, Nicaragua, Panama, Paraguay, $.65. Sec. 14. Gold. 1963. 24 pp. $.35. Sec. Peru, El Salvador, Uruguay, and Venezuela; 10 15. International Finance. 1962. 92 pp. $.65. or more of same issue sent to one address, $5.00 Sec. 16 (New) Consumer Credit. 1965. 103 per annum or $.50 each. Elsewhere, $7.00 per pp. $.65. annum or $.70 a copy. Bank Mergers & the Regulatory Agencies: Federal Reserve Chart Book on Financial and Application of the Bank Merger Act of Business Statistics. Monthly. Annual subscrip­ 1960. 1964. 260 pp. $1.00 a copy; 10 or more tion includes one issue of Historical Chart Book. sent to one address, $.85 each. $6.00 per annum or $.60 a copy in the United Banking Market Structure & Performance States and the countries listed above; 10 or more in Metropolitan Areas: A Statistical Study of same issue sent to one address, $.50 each. of Factors Affecting Rates on Bank Loans. Elsewhere, $7.00 per annum or $.70 a copy. 1965. 73 pp. $.50 a copy; 10 or more sent to Historical Chart Book. Issued annually in Sept. one address, $.40 each. Subscription to monthly chart book includes one Farm Debt. Data from the 1960 Sample Survey issue. $.60 a copy in the United States and coun­ of Agriculture. 1964. 221 pp. $1.00 a copy; 10 tries listed above; 10 or more sent to one ad­ or more sent to one address, $.85 each. dress, $.50 each. Elsewhere, $.70 a copy. Merchant and Dealer Credit in Agriculture. Treasury-Federal Reserve Study of the Gov­ 1966. 109 pp. $1.00 a copy; 10 or more sent to ernment Securities Market. Pt. I. 1959. 108 one address, $.85 each. pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. Monetary Theory and Policy: A Bibliography. Individual books $1.00 each; set of 3, $2.50. Part I—Domestic Aspects. 137 pp. $1.00 a Flow of Funds in the United States, 1939-53. copy; 10 or more sent to one address, $.85 each. 1955. 390 pp. $2.75. Regulations of the Board of Governors of Debits and Clearing Statistics and Their the Federal Reserve System. Use. 1959. 144 pp. $1.00 a copy; 10 or more Rules of Organization and Procedure—Board sent to one address, $.85 each. of Governors of the Federal Reserve Sys­ The Federal Funds Market. 1959. Ill pp. tem. 1962. 40 pp. $1.00 a copy; 10 or more sent to one address, Published Interpretations of the Board of $.85 each. Governors, as of Dec. 31, 1965. $2.50. All-Bank Statistics, 1896-1955. 1959. 1,299 Trading in Federal Funds. 1965. 116 pp. $1.00 pp. $4.00. a copy; 10 or more sent to one address, $.85 each. Industrial Production—1957-59 Base. 1962. 172 pp. $1.00 a copy; 10 or more sent to one U.S. Treasury Advance Refunding. June 1960address, $.85 each. July 1964. 1966. 65 pp. $.50 a copy; 10 or more sent one address, $.40 each. The Federal Reserve Act, as amended through Nov. 5, 1966, with an appendix containing pro­ Survey of Financial Characteristics of Con­ visions of certain other statutes affecting the sumers. 1966. 166 pp. $1.00 a copy; 10 or Federal Reserve System. 353 pp. $1.25. more sent to one address, $.85 each. 182 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS 183 STAFF ECONOMIC STUDIES Mexico’s Economic and Financial Record, by Yves Maroni. Oct. 1966. Studies and papers on economic and financial sub­ Measures of Industrial Production and Final jects that are of general interest in the field of economic research. Demand, by Clayton Gehman and Cornelia Motheral. Jan. 1967. Summaries only printed in the Federal Reserve Firms' Demands For Money: The Evidence Bulletin. From the Cross-Section Data, by William J. (Limited supply of mimeographed copies of Frazer, Jr. Jan. 1967. full text available upon request for single copies.) The Demand for Currency, by George G. Printed in full in the Federal Reserve Bulletin. Kaufman. Feb. 1966. (Reprints available as shown in following list.) The Demand for Money: A Review of the Empirical Literature, by David M. Jones. REPRINTS Feb. 1966. The Demand for Money: Speed of Adjust­ (From Federal Reserve Bulletin unless preceded ment, Interest Rates, and Wealth—A by an asterisk.) Sequel, by Patric H. Hendershott. Mar. 1966. The History of Reserve Requirements for The Process of Inflation: A Review of the Banks in the United States. Nov. 1938. Literature and Some Comparisons of Cy­ 20 pp. clical Performance, 1953-65, by Glenn H. Adjustment for Seasonal Variation. Descrip­ Miller, Jr. Apr. 1966. tion of method used by Board in adjusting eco­ The Federal Reserve System and World nomic data for seasonal variation. June 1941. Monetary Problems, by Robert Solomon. 11 PP- May 1966. The Private Demand for Gold, 1931-53. Sept. The Spanish “Miracle”: Growth and Change 1954. 10 pp. in the Spanish Economy, 1959 to Mid-1965, Bankers’ Acceptance Financing in the United by Rodney H. Mills, Jr. May 1966. States. May 1955. 13 pp. Consumer Credit Regulations: A Review and Seasonal Factors Affecting Bank Reserves. Response, by Jerome W. Shay. June 1966. Feb. 1958. 12 pp. Empirical Aspects of Cost vs. Demand in Open Market Operations in Long-Term Secu­ Commodity Pricing, by Addison T. Cutler. rities. Nov. 1958. 15 pp. June 1966. *Part I, All-Bank Statistics, 1896-1955. Re­ A Model of Federal Reserve Behavior, by print of the U.S. Summary containing a descrip­ John H. Wood. June 1966. tion of revised statistics for all banks in the Cyclical Determinants of Capital Expendi­ United States, by class of bank, together with tures: A Regression Study of the United revised statistics. Apr. 1959. 94 pp. States Steel Industry, by James P. Bennett. Statistics on the Government Securities July 1966. Market. Apr. 1961. 8 pp. The European Economic Community’s Com­ Liquidity and Public Policy, Staff Paper by mon Agricultural Policy and Its Impact Stephen H. Axilrod. Oct. 1961. 17 pp. on U.S. Exports, by Thomas M. Klein. July 1966. ' Revised Indexes of Freight Carloadings. Dec. 1961. 3 pp. A Theory of Household Asset Selection, by William J. Hooter. Aug. 1966. Seasonally Adjusted Series for Bank Credit. July 1962. 6 pp. Liquidity Considerations and Monetary Management, by Leonall C. Andersen (with Interest Rates and Monetary Policy, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. commentaries by Arthur L. Broida and Rich­ ard G. Davis). Sept. 1966. Industrial Production—1957-59 Base. Oct. 1962. 10 pp. The Overseas Dollar Bond Market and Re­ cent U.S. Borrowing Abroad, by Carl H. Flow of Funds Seasonally Adjusted. Nov. Stem. Sept. 1966. 1962. 15 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN • JANUARY 1967 A Sectoral Analysis of Velocity, Staff Paper Cycles and Cyclical Imbalances in a Chang­ by Paul F. McGouldrick. Dec. 1962. 14 pp. ing World, Staff Paper by Frank R. Garfield. Nov. 1965. 15 pp. Changes in Structure of the Federal Debt. Mar. 1963. 10 pp. Bank Credit and Monetary Developments in 1965. Feb. 1966. 14 pp. New Foreign Bond Issues in the U.S. Market, Staff Paper by Robert F. Gemmill. May 1963. Treasury and Federal Reserve Foreign Ex­ 13 pp. change Operations. Mar. 1966. 14 pp. Recent Changes in Liquidity, Staff Paper by Research on Banking Structure and Per­ Daniel H. Brill. June 1963. 10 pp. formance, Staff Economic Study by Tynan Smith. Apr. 1966. 11 pp. Measures of Member Bank Reserves. July Recent Changes in U.S. Trade and Payments. 1963. 14 pp. Apr. 1966. 11 pp. A Bank Examiner Looks at Agricultural Banking and Monetary Statistics, 1965. Se­ Lending, Staff Paper by Brenton C. Leavitt. lected series of banking and monetary statistics July 1963. 8 pp. for 1965 only. Mar. and June 1966. 15 pp. Measuring and Analyzing Economic Growth, Recent Credit and Monetary Developments. Staff Paper by Clayton Gehman. Aug. 1963. July 1966. 12 pp. 14 pp. Revision of Bank Credit Series. July 1966. Changes in Banking Structure, 1953-62. Sept. 6 PP- 1963. 8 pp. Commercial Bank Liquidity, Staff Economic Economic Change and Economic Analysis, Study by James Pierce. Aug. 1966. 9 pp. Staff Paper by Frank R. Garfield. Sept. 1963. Changes in Time and Savings Deposits, De­ 17 pp. cember 1965-May 1966. Aug. 1966. 35 pp. Bank and PCA Lending to Farmers. Sept. 1963. Revision of Weekly Reporting Member Bank 11 PP- Series. Aug. 1966. 4 pp. The Open Market Policy Process. Oct. 1963. Interest Rates in Western Europe. Sept. 11 PP- 1966. 19 pp. Survey of Financial Characteristics of Con­ Revision of Money Supply Series. Sept. 1966. sumers. Mar. 1964. 9 pp. 13 pp. Federal Reserve Security Transactions, 1954­ Treasury and Federal Reserve Foreign Ex­ 63, Staff Paper by Stephen H. Axilrod and change Operations. Sept. 1966. 11 pp. Janice Krummack. July 1964. 16 pp. Interest Rates in U.S. Capital Markets. Nov. Ministerial Statement of the Group of Ten 1966. 16 pp. and Annex Prepared by Deputies. Aug. 1964. Toward Understanding of the Whole De­ 25 pp. veloping Economic Situation, Staff Eco­ Yield Differentials in Treasury Bills, 1959­ nomic Study by Frank R. Garfield. Nov. 1966. 64, Staff Paper by Samuel I. Katz. Oct. 1964. 14 pp- 20 pp. A Revised Index of Manufacturing Capacity, Research into Banking Structure and Com­ Staff Economic Study by Frank de Leeuw with petition. Nov. 1964. 17 pp. Frank E. Hopkins and Michael D. Sherman. Nov. 1966. 11 pp. Bank Credits to Foreigners. Mar. 1965. 10 pp. Time Deposits and Financial Flows. Dec. Revision of Bank Debits and Deposit Turn­ 1966. 14 pp. over Series. Mar. 1965. 4 pp. Measures of Banking Structure and Competi­ Balance of Payments Program: Guidelines tion. Sept. 1965. 11 pp. for Banks and Nonbank Financial Institu­ tions. Dec. 1966. 8 pp. U.S. International Payments. Oct. 1965. 9 pp. The Roll of Financial Intermediaries in U.S. Time Deposits in Monetary Analysis, Staff Capital Markets, Staff Economic Study by Economic Study by Lyle E. Gramley and Sam­ Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. uel B. Chase, Jr. Oct. 1965. 25 pp. Fiscal Policy and Debt Management. Nov. Size and Composition of Consumer Saving. 1965. 11 pp. Jan. 1967. 19 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page 86) Acceptances, bankers’, 95, 113, 115 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 106, 108 Accumulated at commercial banks Arbitrage, 177 for payment of personal loans, 105 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 101 Banks and the monetary system, 101 Banks, by classes, 95, 102, 107, 110, 115 Corporate, current, 127 Federal Reserve Banks, 96, 171 Domestic banks, by classes, 102, 106, 108, 115 Member banks, subject to reserve Federal Reserve Banks, 96 requirements, 100 Automobiles: Postal savings, 94, 101 Consumer instalment credit, 132, 133, 134 Discount rates, 93, 176 Production index, 136, 137 Discounts and advances by Federal Reserve Banks, 88, 96, 98 Bankers’ balances, 107, 109 Dividends, corporate, 126, 127 (See also Foreign liabilities and claims) Dollar assets, foreign, 163, 171 Banks and the monetary system, 101 Banks for cooperatives, 117 Earnings and hours, manufacturing industries, 143 Bonds (See also U.S. Govt, securities): Employment, 140, 142, 143 New issues, 123, 124, 125 Prices and yields, 113, 114 Farm mortgage loans, 128, 129, 130 Brokers and dealers in securities, bank loans to, Federal finance: 106, 108 Cash transactions, 118 Business expenditures on new plant and Receipts and expenditures, 119 equipment, 127 Treasurer’s balance, 118 Business indexes, 140 Federal funds, 92, 106 Business loans (See Commercial and industrial loans) Federal home loan banks, 117, 129 Federal Housing Administration, 114, 128, 129, 130 Capital accounts: Federal intermediate credit banks, 117 Banks, by classes, 102, 107, 111 Federal land banks, 117 Federal Reserve Banks, 96 Federal National Mortgage Assn., 117, 130 Carloadings, 140 Federal Reserve Banks: Central banks, foreign, 160, 176 Condition statement, 96 Certificates of deposit, 111 U.S. Govt, securities held, 88, 96, 98, 120, 121 Coins, circulation, 99 Federal Reserve credit, 88, 96, 98 Commercial and industrial loans: Federal Reserve notes, 96, 99 Commercial banks, 106 Federally sponsored credit agencies, 117 Weekly reporting member banks, 108, 112 Finance company paper, 113, 115 Commercial banks: Financial institutions, loans to, 106, 108 Assets and liabilities, 102, 106, 108 Float, 88 Consumer loans held, by type, 133 Flow of funds, 148 Deposits accumulated at, for Foreign central banks, 160, 176 payment of personal loans, 105 Foreign currency operations, 96, 98, 162, 170 Number, by classes, 102 Foreign deposits in U.S. banks, 88, 96, 101, Real estate mortgages held, by type, 128 107, 110, 171 Commercial paper, 113, 115 Foreign exchange rates, 178 Condition statements (See Assets and liabilities) Foreign liabilities and claims: Construction, 140, 141 Banks, 164, 166, 167, 169, 171 Consumer credit: Nonfinancial concerns, 172 Instalment credit, 132, 133, 134, 135 Foreign trade, 175 Noninstalment credit, by holder, 133 Consumer price indexes, 140, 144 Gold: Consumption expenditures, 146, 147 Certificates, 96, 99 Corporations: Earmarked, 171 Sales, profits, taxes, and dividends, 126, 127 Net purchases by U.S., 162 Security issues, 124, 125 Production, 161 Security prices and yields, 113, 114 Reserves of central banks and govts., 160 Cost of living (See Consumer price indexes) Reserves of foreign countries and international Currency in circulation, 88, 99, 100 organizations, 163 Customer credit, stock market, 114 Stock, 88, 101, 162 Gross national product, 146, 147 Debits to deposit accounts, 98 Debt (See specific types of debt or securities) Hours and earnings, manufacturing industries, 143 Demand deposits: Housing starts, 141 Adjusted, banks and the monetary system, 101 Adjusted, commercial banks, 98, 100, 107 Income, national and personal, 146, 147 Banks, by classes, 95, 102, 110 Industrial production index, 136, 140 Member banks, subject to reserve Instalment loans, 132, 133, 134, 135 requirements, 100 Insurance companies, 116, 120, 121, 129 Turnover, 98 Insured commercial banks, 104, 105, 106 Type of holder, at commercial banks, 107 Interbank deposits, 95, 102, 107 185 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN • JANUARY 1967 Interest rates: Reserve position, basic, member banks, 92 Business loans by banks, 112 Reserve requirements, member banks, 94 Federal Reserve Bank discount rates, 93 Reserves: Foreign countries, 176, 177 Central banks and govts., 160 Money market rates, 113, 177 Commercial banks, 107 Mortgage yields, 114, 131 Federal Reserve Banks, 96 Time deposits, maximum rates, 94 Foreign countries and international Yields, bond and stock, 113 organizations, 163 International capital transactions of the U.S., 164 Member banks, 88, 90, 95, 100, 107, 109 International institutions, 160, 162, 163 Residential mortgage loans, 128, 129, 130, 131 Inventories, 146 Retail credit, retail sales, 132, 140 Investment companies, new issues, 125 Investments (See also specific types of investments): Sales finance companies, loans, 132, 133, 135 Banks, by classes, 102, 106, 109, 115 Saving: . Commercial banks, 105 Flow of funds series, 148 Federal Reserve Banks, 96, 98 National income series, 147 Life insurance companies, 116 Savings and loan assns., 116 121, 129 Savings and loan assns., 116 Savings deposits (See Time deposits) Savings institutions, principal assets, 115, 116 Labor force, 142 Securities (See also U.S. Govt, securities): Loans (See also specific types of loans): Federally sponsored agencies, 117 Banks, by classes, 102, 106, 108, 115 International transactions, 170, 171 Commercial banks, 105 New issues, 123, 124, 125 Deposits accumulated at commercial Silver coin and silver certificates, 99 banks for payment of personal loans, 105 State and local govts.: Federal Reserve Banks, 88, 96, 98 Deposits of, 107, 110 Insurance companies, 116, 129 Holdings of U.S. Govt, securities, 120, 121 Insured or guaranteed by U.S., 128, 129, 130 New security issues, 123, 124 Savings and loan assns., 116, 129 Ownership of obligations of, 106, 115, 116 Manufacturers, production index, 137, 140 Prices and yields of securities, 113, 114 State member banks, 104, 105 Margin requirements, 94 Stock market credit, 114 Member banks: Stocks: Assets and liabilities, by classes, 102, 106 New issues, 124, 125 Borrowings at Reserve Banks, 90, 96, 111 Prices and yields, 113, 114 Deposits, by classes, 95 Number, by classes, 103 Tax receipts, Federal, 119 Reserve position, basic, 92 Time deposits, 94, 95, 100, 101, 102, 107, 110 Reserve requirements, 94 Treasurer’s account balance, 118 Reserves and related items, 88, 100 Treasury cash, Treasury currency, 88, 99, 101 Weekly reporting series, 108 Treasury deposits, 88, 96, 118 Mining, production index, 137, 140 Turnover, deposit, 98 Money rates (See Interest rates) Money supply and related data, 100 Unemployment, 142 Mutual funds (See Investment companies) U.S. balance of payments, 174 Mutual savings banks, 101, 102, 104, 115, U.S. Govt, balances: 120, 121, 128 Commercial bank holdings, by classes, 107, 110 Consolidated monetary statement, 101 National banks, 104, 105 Member bank holdings, 100 National income, 146, 147 Treasury deposits at Federal Reserve National security expenditures, 119, 146 Banks, 88, 96, 118 Nonmember banks, 104, 105, 106, 107 U.S. Govt, securities: Bank holdings, 101, 102, 106, 109, 115, 120, 121 Open market transactions, 95 Dealer transactions, positions, and financing, 122 Federal Reserve Bank holdings, 88, 96, Payrolls, manufacturing, index, 140 98, 120, 121 Personal income, 147 Foreign, international holdings, 96, 163, 171 Postal Savings System, 94, 101 International transactions, 170 Prices: New issues, gross proceeds, 124 Consumer, 140, 144 Open market transactions, 95 Security, 114 Outstanding, by type of security, 120, 121, 123 Wholesale commodity, 140, 144 Ownership of, 120, 121 Production, 136, 140 Prices and yields, 113, 114, 177 Profits, corporate, 126, 127 United States notes, 99 Utilities, production index, 137, 140 Real estate loans: Banks, by classes, 106, 108, 115, 128 Vault cash, 88, 94, 107 Delinquency rates on home mortgages, 131 Veterans Administration, 128, 129, 130 Mortgage yields, 114, 131 Nonfarm mortgage foreclosures, 131 Weekly reporting member banks, 108 Type of holder, 128, 129, 130 Type of property mortgaged, 128, 129, 130 Yields (See Interest rates) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES ☆ (Q THE FEDERAL RESERVE SYSTEM q ) ☆ Legend ““ Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories O Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis