Federal Reserve Bulletin, 1967-05

FEDERAL RESERVE BULLETIN MAY 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 Ln 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 NUMBER 5 VOLUME 53 MAY 1967 691 Monetary Policy and Economic Activity. A Postwar Review 713 Staff Economic Studies: Summary 715 Member Bank Income, 1966 721 Revision in Quarterly Survey of Interest Rates on Business Loans 728 Monetary Policy and the Residential Mortgage Market 741 Statement to Congress 750 Membership of the Board of Governors of the Federal Reserve System, 1913-67 752 Law Department 783 Announcements 786 National Summary of Business Conditions 788 Guide to Tabular Presentation 789 Financial and Business Statistics, U.S. 871 International Financial Statistics 893 Board of Governors and Staff 894 Open Market Committee and Staff; Federal Advisory Council 895 Federal Reserve Banks and Branches 896 Federal Reserve Board Publications 899 Index to Statistical Tables Inside back cover Map of Federal Reserve System EDITORIAL COMMITTEE Charles Molony Daniel H. Brill Robert C. Holland Robert Solomon Albert R. Koch 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

Members of the staff of the Board of Gov­ ernors of the Federal Reserve System made a Staff Presentation in audio-visual form to the “Symposium on Money, Interest Rates, and Economic Activity,” which was held in Washington, D.C., in April 1967, under the sponsorship of the American Bankers As­ sociation. The materials used on that occa­ sion—with such modifications of charts and text as are necessary for printing in the Bulletin—are shown below. The original presentation was made by Daniel H. Brill, Senior Adviser to the Board; Robert C. Holland and Robert Solo­ mon, Advisers to the Board; and Albert R. Koch, Deputy Director of the Division of Research and Statistics. Graphics were de­ signed under the supervision of Mack Rowe. The task on which we are setting out—a review of monetary policy over the entire postwar period—borders on the impossible. Just to read off the list of topics suggested to us for possible coverage would take most of our allotted time. Therefore, we will have to be highly selective. We will spend some time discussing post­ war developments in financial markets, since it is through these markets that policy actions are communicated to the rest of the economy. But we must spend time, too, on nonfinancial developments, since they de­ termine the stance of policy and reflect how fully the ultimate goals of policy are real­ ized. And we will consider the international as well as the domestic aspects of policy actions. For the selection of developments in these areas on which to focus, and for the inter­ pretation of events, let me first exonerate our principals. This is purely a staff view of the lessons of the postwar years; it is not in any way an official history of the period. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 [n most respects the postwar period has been satisfying in terms of over-all eco­ TWENTY YEARS OF PROGRESS nomic performance. Real gross national _______ Index 1947=100 product and industrial output have risen substantially, and the effects of growth have been reflected in the expansion of employ­ ment and real wages. These developments provided the context in which monetary de­ cisions were made over the postwar period. It is appropriate, therefore, to begin our discussion with a more detailed review of the performance of the real economy. NONFINANCIAL DEVELOPMENTS One of the most pervasive stimulants to postwar growth was the expansion in popu­ POPULATION Millions of persons lation and the large increase in demands for goods and services that it generated. The im­ pact spread from housing, to schools, and to community facilities—sectors where outlays are relatively insensitive to short-run changes in income. Some of these outlays, however, are quite responsive to variations in credit conditions. The new-born of 20 years ago 2.0 are reaching marriageable age, and a large 1.5 wave of family formation is now in the offing. 1.0 But with the birth rate declining, the an­ nual percentage increase in population has slowed markedly since the middle 1950’s. This slowing could have advantages, since earlier high birth rates have aggravated ur­ ban congestion, intensified pressure on edu­ cational facilities, and increased the burdens of Government. These pressures would be eased somewhat by a slower growth in popu­ lation, but economic expansion would then have to depend more on invention and tech­ nical progress. Research and development expenditures have been an important factor in technical progress and increased productivity—the basic ingredients of higher standards of liv- 692 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY ing. Expenditures for research and develop­ ment, supported in part by Federal financ­ TECHNOLOGY AND EDUCATION ing, have risen dramatically since 1950. Billions of dollars With technology changing rapidly, business R & D Expenditures investment decisions may have become less dependent on short-run prospects for sales and profits. Investment in human capital—repre­ sented here by the rise in college enroll­ ment—also has yielded striking returns. The effects of increased knowledge, accord­ ing to one estimate, may account for as much as half of our growth in total real output. With population, skills, and technology all advancing rapidly, the upward course of business fixed investment has proceeded BUSINESS FIXED INVESTMENT with few interruptions. Earlier in the post­ war period the rate of increase was rela­ tively modest, despite large replacement needs, but investment advanced rapidly from 1955 through 1957. The slowdown in outlays after 1957 created fears that invest­ ment opportunities were becoming satu­ rated. But growth in demands and stimula­ tive tax and credit policies resulted in an acceleration after 1961. As a share of gross national product, expenditures for business fixed investment are not especially large—varying between CAPACITY USE & UNEMPLOYMENT 9 and 11 per cent—but they are strategic in terms of maintaining high resource use and economic growth. Providing a financial cli­ mate conducive to a high, but sustainable, rate of fixed investment clearly must remain a central objective of monetary policy. Although the growth rates of business in­ vestment and of GNP have been large over the past 20 years, cyclical downturns have been costly. In each of the four postwar re­ cessions, indicated by the vertical shading in the chart, the utilization rate of manufactur­ ing capacity declined, and profits were re­ duced substantially. 693 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 Unemployment during these recessions rose sharply—to a high of over 7 per cent during the recession of 1957-58. But there were also periods between recessions when the unemployment rate was too high, and capacity use was too low. Our problems of resource slack in the late 1950’s and the early 1960’s resulted from inadequate longer-run growth as well as from recession­ ary declines. It is some comfort that the duration and amplitude of recessions have been reduced relative to the prewar period. Measured by the decline in industrial production, the four postwar recessions ranged in magnitude from 7 to 14 per cent. By contrast, de­ clines of the 1920’s and 1930’s were much deeper and were generally longer. The cur­ rent expansion since 1960 has been es­ pecially encouraging, with industrial output rising over 40 per cent between 1961 and 1966. Like compound interest, the cumu­ lative return from steady growth is surpris­ ingly large. With recessions relatively short and mild, the postwar years have been free of the major price deflations of earlier periods in our economic history. Postwar periods of inflation have been episodic—usually warinduced. Wholesale prices rose sharply after World War II ended and during the early stages of the Korean conflict. The rise in 1956-57, by contrast, reflected mainly a peacetime investment boom with rising unit labor costs. After 1957, wholesale prices were stable for about 7 years, as unit labor costs leveled off, but then the pressures of Vietnam, superimposed on expanding pri­ vate demands, touched off new price in­ creases. The recent price rise, however, has been milder than those of earlier inflationary periods. In the early postwar years consumer 694 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY prices moved more or less in line with wholesale prices. After 1958, however, the two series began to diverge. The rise in con­ sumer prices since then has reflected in large HOURLY part increased costs of services. EARNINGS An important factor moderating cost­ price pressures over the postwar period has been the diminishing rate of increase in hourly earnings in manufacturing (including PRODUCTIVITY i fringe benefits). The bars in the accom­ panying chart represent average annual 48'53 53’57 '57'60 60'66 '65’66 i rates of increase from one cycle peak to the UNIT LABOR next. In each successive cycle, the increase COSTS has been smaller. Meanwhile, productivity gains have continued to be rapid—averag­ ing between 3 and 4 per cent per year. Unit labor costs, consequently, have increased progressively less, and between 1960 and 1966 they showed virtually no rise. I In the last year of the recent period, how- | ever, the pattern changed dramatically. ! Hourly earnings rose more rapidly—in the context of rising consumer prices, higher profits, and a tight labor market. And with | gains in productivity slowing, unit labor costs rose significantly. Avoiding inflation and recession depends on fiscal as well as on monetary policy. Deficits and surpluses in the Federal budget, FEDERAL BUDGET as measured in the national income ac­ NIA BASIS counts, have contributed importantly to i cyclical stability. The budget has moved toj ward deficit during recessions and back to­ ' ward surplus during expansions. j In the most recent expansion the swing ; toward surplus was cut short by tax reduc- : tions, which played a significant role in pro­ longing economic growth. But when the ' expanded defense effort began in mid-1965, i the rapid escalation of expenditures prei vented the movement toward budget surplus ’ that we needed to help maintain price sta- ■ bility. 695 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 Increased spending for the war in Vietnam was the principal source of the rise in total GOVT. EXPENDITURES Federal purchases last year. Indeed, the postwar growth and fluctuations in Federal purchases have been dominated by defense requirements. Growing pressures for nondefense gov­ ernment services, however, have generated substantial increases in other types of gov­ ernmental spending. Thus, State and local government purchases have nearly doubled as a percentage of GNP in the past two decades, and these outlays now about equal Federal purchases. Federal transfer pay­ ments, which rose slowly in the first postwar decade, began accelerating thereafter—^re­ POPULATION CHANGE 1947-66 flecting marked increases in social security benefits and in other social welfare pro­ grams. These growing government expenditures can be traced, in part, to new demands created by the postwar change in popula­ tion. Half of the postwar increase has been in the number of youngsters under 18 years of age. Educating this group has absorbed more than a third of State and local gov­ ernment spending and an increasing propor­ tion of Federal outlays. And the large in­ crease in the oldest age group has brought with it a sharp rise in government transfer payments. The massive migration into suburbia has also had a major influence on economic de­ velopments. Surburban growth has required huge amounts of public and private funds to build the necessary social infrastructure. Though central cities have grown also, they have lost many higher-income families. Left with a deteriorating tax base and growing urban problems, the cities have had to seek outside help in meeting rising costs. Rising demands for services are evident, too, in the pattern of consumer outlays. 696 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY Consumers are allocating a larger portion of their outlays to better housing and to in­ creased education and medical care, and a smaller portion to such basic nondurable goods as food and clothing. Durable goods expenditures continue to fluctuate cyclically, but over the longer run the proportion of consumers’ spending on durable goods has changed little. Growth of government and private spend­ ing for services and the rapid increase in productivity in the output of goods, have profoundly affected the structure of employ­ ment. Service employment, including per­ sons engaged in trade and in private and public services, has increased almost unin­ terruptedly. Employment in the goods-producing industries, although recovering somewhat in recent years, is only a little higher now than in 1953. Farm employ­ ment, meanwhile, has declined steadily. With a higher proportion of our work force in the more stable service sectors, cyclical unemployment problems may be­ come less severe. But with slow growth of jobs in output of goods, and with increasing demands for highly trained workers, unem­ ployment problems of a different kind have developed. UNEMPLOYMENT STRUCTURE 1966 Last year, for example, the overall un­ employment rate declined, and quickly re­ duced the pool of trained and experienced workers. Among adult men the unemploy­ ment rate was nearly as low as during the Korean war. But for the increasing number of teenage jobseekers, the unemployment rate has remained exceptionally high. Simi­ larly, the rate for nonwhite workers has shown little improvement, and it remains more than double the figure for white work­ ers. Inadequate skills and inexperience are clearly major occupational handicaps in the labor market. For white-collar and skilled 697 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 workers, unemployment rates last year were below 3 per cent, but for those without skills the rates were much higher. Structural unemployment problems can­ not be solved by aggregate monetary and fiscal policies alone. But with the social costs of unemployment extraordinarily high, the need to maintain a strong and growing econ­ omy has become more urgent. Let us now turn to the position of the United States in the world economy. BALANCE OF PAYMENTS It was in 1958—9 years ago—that ero­ sion of the U.S. international reserve posi­ tion, and the payments imbalance from U. S. RESERVE POSITION which it stems, began to be a serious prob­ lem for the United States. The problem has proved persistent. Total U.S. reserve assets —consisting of gold, convertible currencies, and our reserve position in the International Monetary Fund—have declined by about $10 billion since 1957, and U.S. liabilities to foreign official institutions have increased by about $7 billion. In order to arrest this deterioration it is necessary to achieve a better matching be­ tween our net exports of goods and services, on the one hand, and our expenditures abroad for aid, military purposes, and for­ eign investment, on the other. Foreign economic aid in the first 5 post­ war years averaged over $5 billion a year, with heavy outflows to Europe. At that time, with urgent demands and severe shortages of capacity abroad, any flow of dollars from the United States pulled U.S. exports with it. Since 1952, net aid to Europe has been very small—even negative in years when large advance repayments of debts were be­ ing made. Aid to other countries continued to show a rising trend through 1962 but has since leveled off. 698 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY Although foreign economic aid is larger now than it was in the mid-1950’s, it is a ILITARY EXPEND. ABROAD smaller proportion of GNP—about one-half of 1 per cent. Most aid is now tied to U.S. exports. In some cases this aid-tying avoids a burden on our balance of payments, but in others the tied-aid exports replace sales that might have been made for cash. U.S. military expenditures abroad reached a peak in 1958 of about $3.5 billion. Since then, expenditures in Europe, and also in Canada, have declined. But those in other areas have risen abruptly since 1964 because of Vietnam, and the total for all areas reached a new high last year. Sales of mili­ tary equipment (not shown here) have IRECT INVESTMENT helped to offset expenditures, and net mili­ tary spending abroad remained somewhat lower last year than in 1958. While military expenditures were gradu­ ally declining from 1958 to 1964, corporate direct investment abroad was increasing rapidly. Before 1958, direct investments were mainly in Canada and in the petroleum ; industry elsewhere. These bulged during the I Suez crisis of 1956-57. Since 1958, flows to manufacturing affiliates in Europe have i also been strongly on the rise. Last year, growth in the total outflow for direct invest­ ,S. PVT. CAPITAL ment was checked in response to the Com­ Billions of dollars merce Department’s voluntary program. Other Than Direct Investment Income receipts from past investments have also had a strong upward trend and have exceeded outflows of new capital. But in recent years this excess has shrunk. Net outflows of U.S. private capital other than direct investment have had a strong growth trend since the early 1 950’s. These flows were cut back sharply in 1965 and re­ mained low last year under the influence of the interest equalization tax (IET), the vol­ '49 ’58 '66 untary credit restraint programs, and the tightness in U.S. financial markets. The IET 699 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 and the voluntary programs are still exerting substantial effects this year. NET INTERNAT’L TRANSACTIONS In the accompanying chart, we have added up, for successive periods, the selected aid, military, and investment payments just discussed. The steady increase since the early 1950’s is evident. Meanwhile, the U.S. export surplus on goods and services has also been on a rising trend since the early 195O’s. But net receipts on goods and services have not been large enough to match the total payments on aid and on military and investment accounts. Thus, the overall balance of payments— shown in the accompanying chart on the of­ ficial reserve transactions basis—has been in OVERALL BALANCE ANNUAL AVG deficit since the early 195O’s. At first, these Billions of dollars deficits were regarded as desirable, since - 46-49 postwar reconstruction required some build­ ing up of the gold and dollar reserves of foreign countries. But by the time the world­ wide boom of the mid-1950’s came to an end, the dollar shortage was clearly over, and substantial U.S. payments deficits were no longer welcome. Just at that time, the rate of deficit increased sharply—to an average of about $2.5 billion a year in 1958-61. The new problem was to reduce these deficits. Since the early 1960’s, the rate of deficit has GOODS & SERVICES been cut by nearly half. But it remains too large, and the accompanying erosion of the U.S. reserve position is a serious problem. While limitations on capital outflow can contribute to the solution of this problem, heavy reliance must also be placed on a long-run improvement in the surplus of exports over imports of goods and services. Since the early 1 95O’s, exports of goods and services, including investment income re­ ceipts, have been growing at about the same rate as imports. These more or less parallel movements have given the net balance on these transactions an increasing trend, 700 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY which, on a ratio scale, shows up as a steady gap- There have been wide fluctuations, mostly of a cyclical character, in the goods and services balance. Fluctuations in demand in this country cause short-run variations in the growth of U.S. imports. Over the long run, merchandise imports have grown roughly in line with GNP. But they have declined more rapidly than GNP in reces­ sions, shown in the chart by the shading. And they have risen much more sharply than GNP during boom periods, as in 1965­ 66, when domestic pressures on capacity be­ came intense. Similarly, exports fluctuate in response to GOODS & SERVICES cyclical developments abroad. Cycles in Europe, Canada, and Japan directly affect shipments to those countries. And shipments to nonindustrial countries tend also to re­ flect, with a lag, the fluctuations of demand in foreign industrial countries and in the United States. i Longer-run trends of both exports and imports arc influenced by our competitive position in world markets. During the boom of the mid-1950's, prices in this country rose sharply, especially for producers’ equip­ ment. The price advance here for those products outpaced that in Europe, which is exemplified in the chart by Germany. Eu­ rope’s better price performance in the 1950’s I was the result, in part, of a more rapid ad­ vance in productivity. Thus, sharply rising | wages in Europe kept consumer prices mov- ' ing up as fast as ours in the 1950’s while ; Europe’s industrial and export prices lagged ‘ ours. Our international competitive position may have been at its weakest in the years from 1958 to I960. Thereafter, relative ; price stability in the United States—at least ’ until last year—has been helping us to re­ : gain some of the ground lost. 701 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 But the balance of payments problem is still with us. To correct it, we must en­ OVERALL BALANCE ANNUAL AVG large our surplus on goods and services or hold down capital outflows or both, and we must do these things in a way that is con­ sistent with other objectives—in particular, the maintenance of a vigorous and healthy domestic and world economy. Our balance of payments problem— represented by a persistent deficit—has as its counterpart a persistent surplus in con­ tinental Western Europe. Better equilibrium in world payments requires corrective action by Europe—action to reduce surpluses there —as well as corrective action here. What contribution can monetary policy make to improvement in our payments posi­ tion? Its main contribution is to help pre­ vent price inflation and the sort of deteriora­ tion in our competitive position that oc­ curred in the late 195O’s. This means try­ ing to prevent the build-up of excess demand pressures, such as we experienced in 1965­ 66. Although monetary policy also has some capacity for affecting capital flows, that capacity is limited if monetary policy is to perform its domestic tasks adequately. It is the influence on prices and costs that matters most for the longer-run balance of payments position. The presentation will continue with a review of developments in domestic financ­ ial markets over the postwar period. FINANCIAL DEVELOPMENTS Postwar economic growth has been sup­ ported by a rapid increase in private debt. Measured here to include the debt of non­ financial businesses, individuals, and State and local governments, private debt has risen much faster than GNP. While length­ ening of maturities has moderated the debt burden, the fragmentary evidence available 702 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY suggests that a larger share of current in­ come is now being absorbed by debt service. The need for maintaining a stable growth in income to sustain repayment abilities of borrowers has thus become more critical. Federal debt—net of holdings by the Federal sector—dropped sharply relative to GNP in the early postwar years. In dollar amounts, net Federal debt reached its trough in 1951, but the increase since then has been slow, and the ratio to GNP has fallen fur­ ther. However, with private debt rising rapidly, the ratio of total debt to GNP began to show an upward trend early in the 1950’s, and the rise continued until recently. In the process the financial markets had to absorb an abundance of new securities. Debt expansion has brought with it ris­ ing interest rates on all types of borrowing. For long-term rates on both Government and private securities (the latter repre­ sented in the chart by the FHA mortgage rate), recessionary declines were short, and rates subsequently climbed to new peaks —and to the highest levels in four decades during 1966. Three-month bill rates, characteristically more volatile, experienced much wider cyclical swings and rose more during the entire period than did long-term yields. While the secular rise in yields reflects mainly the strength in domestic investment and borrowing, other developments also played a role. International capital markets have become more closely interrelated, and capital needs in other countries increasingly impinge on U.S. financial markets. The pace of borrowing by individuals and businesses has been irregular. These fluctua­ tions reflect principally the course of busi­ ness investment in fixed capital and inven­ tories, and purchases by individuals of homes and durable goods. Since these expenditures 703 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 are heavily financed by credit, sharp surges in investment are typically accompanied by still larger increases in borrowing. Monetary policy works largely—though certainly not exclusively—through its im­ pact on these types of investment expendi­ tures. Its task is to promote monetary and credit conditions that help sustain high use of resources and the maximum noninflationary rate of expansion in investment and in economic activity. Accomplishing these objectives has called for recognition that the amount of money —that is, currency and demand deposits—• needed to support a given level of GNP has been changing. Over the postwar period the MONEY & TIME DEP. RATIOS TO GNP ratio of money to GNP has declined— Per cent rather rapidly until 1951, and then more slowly. It could well decline further, given sufficient interest rate incentives and further development of techniques for economizing '50 '55 '60 '66 on cash. But this ratio is already at a rec­ ord low, and forecasting an indefinite con­ tinuance of the trend would be hazardous, even on the eve of the checkless society. Broadening the analysis to include time deposits of commercial banks does not clarify the economy’s monetary needs. Post­ war growth in time deposits has not followed the course of expansion in money. The ratio of time deposits to GNP first declined and then remained level through most of the 195O’s. More recently, the ratio has in­ creased substantially as banks have bid more aggressively for these deposits. The ratio to GNP of money and time de­ posits taken together reflects the results of these divergent trends. This ratio declined through most of the postwar period, but then began to rise gradually during the 1960’s, when time deposits were increasing rapidly. Changes in the amounts of money and time deposits held by the public, relative to 704 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY > GNP, reflect dramatic postwar shifts in the structure of financial asset holdings, espe­ CONSUMER HOLDINGS cially those of consumers. In 1946, their holdings of debt securities exceeded their money balances and also their savings i accounts at banks and nonbank intermedi- I aries. By 1966, however, consumers had I built up their savings accounts to twice their i holdings of debt securities and to more than ' three times their holdings of money. The ! total volume of savings accounts by this ■ time was huge—roughly $300 billion— ; and financial institutions were bidding ag­ ; gressively for these funds. i The competitive positions of banks and ; nonbank intermediaries in the market for CONSUMER SAVINGS ACCOUNTS consumer savings accounts have changed s markedly in the postwar period. Over the ■ first decade the interest rates offered by i commercial banks were less attractive than ' those paid by other institutions, and the ; banks’ share of the total stock in this market j declined. ; By the mid-1950’s, bank appetites to com­ ; pete for savings accounts had become । whetted by the need for new sources of ■ loanable funds. When Regulation Q ceilings i were lifted, banks raised interest rates on ■ deposits, and they began to hold their own ‘ in this market. During 1965 and 1966, ; competition intensified further, and banks ■ —for the first time in the postwar period ' —gained headway in the competition for ' consumer savings accounts. In the corporate sector management of ; liquid assets also has influenced the level ; and structure of financial asset holdings. 1 The ratio of total liquid assets to current liabilities has trended downward—reflecting ! strong interest rate incentives to limit money ’ holdings and the development and spread of ‘ innovations in corporate cash management. Corporate money balances, consequently, 705 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 I grew slowly over the first 15 postwar years I -—more slowly than sales or current liabili­ ties. Large banks became concerned about the sluggish growth of the accounts of their large customers, and in 1961 they introduced negotiable CD’s to recapture a larger share of corporate liquid funds. Corporate time deposits then mushroomed, but money holdings declined. However, corporate investment in short­ term securities also appears to have been reduced by this increased commitment to CD’s. Thus, corporate security holdings have not increased materially since 1960, even though their total liquid assets have grown by one-fifth. SHARE OF FUNDS SUPPLIED Per cent For banks, attraction of time and savings - 40 deposits from consumers, businesses, and Commercial .®.l_.l. l_ _l ~ others has significantly improved their posi­ Banks 20 tion as suppliers of funds. In the first 5 postwar years banks supplied less than one­ fifth of total funds raised; by 1962-65, on the other hand, their share had risen to over one-third. This rising bank share was partly at the expense of nonbank financial institutions, - 30 Nonfin. Public MJI I whose share of funds supplied has dimin­ mjl - io ished gradually over the past decade. But the principal offset was the reduction in funds supplied directly to borrowers by the nonfinancial public, through their purchases of market securities. The funds attracted by banks and non­ bank intermediaries through competition in rates and other terms have proved to be highly interest-sensitive. In 1966, market interest rates rose sharply—and by more than the rates on deposit-type claims, whose yields were constrained by both institutional and regulatory factors. Consequently, the nonfinancial public acquired more market securities and fewer deposit-type claims, and the shares of funds supplied by banks and 706 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY nonbank institutions declined during the year. TIME DEPOSITS Last year’s experience was foreshadowed Pei cent by earlier fluctuations in the growth rate of time deposits at commercial banks. These variations appear to be mainly the result of changes in relative yields. The bottom panel of the accompanying chart shows the yield spread, in basis points, between the rate on 3- to 5-year Governments—a representative market security—and the average effective rate paid on time and savings accounts. Time deposits became relatively more at­ tractive when the yield spread moved up, and in those periods time deposit growth generally accelerated. When yields on time deposits became relatively less attractive, their growth usually slowed. Movements in these two series have not been perfectly cor­ related, to be sure, but they have been quite similar. With holders of financial assets becoming more interest-sensitive, nonbank institutions have been increasingly influenced by the effects of monetary policy. Thus, the growth rate of nonbank savings accounts began to recede late in 1964, when competition from banks intensified. In last year’s taut financial markets, with rates on market securities and banks’ time deposits rising, net inflows to nonbank institutions dropped markedly, and then increased sharply in the fourth quarter when market rates began to fall. The impact of monetary restraint also spread to insurance companies, where policy loans rose sharply, reducing the volume of funds available for investment in corporate securities and mortgages. The more aggressive competition develop­ ing in financial markets over the postwar years, together with the decline in liquidity of financial institutions, has created an en­ vironment requiring a higher order of man- 707 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 agement, both at banks and at nonbank fi­ nancial institutions. At the central bank, INDUSTRIAL PRODUCTION these developments also call for increased capability on the part of policy-makers to recognize, and to adapt to, policy impacts that are not only becoming more prompt but also more pervasive. In conclusion, let us discuss the implica­ tions of our analysis for the formulation of policy. CONCLUSION Recognizing that there is still much to be learned about stabilization policy, we can all take some pride in the performance of the economy in the postwar period to date. In­ PRICES dustrial output has more than doubled since 1947. In long-run perspective, the four re­ cessions appear as brief hesitations in the general advance. Though production has turned down recently, the rapid and pro­ longed expansion since 1960 suggests that we may have learned something about main­ taining steady growth. But even a casual look at broad economic indicators reveals unsolved problems. For example, the unsatisfactory price rec­ ord reflects mainly sudden bursts of demand, the effects of which are seldom reversed. For OVERALL BALANCE prices, what goes up usually does not come ANNUAL AVG. Billions of dollars down. The stability of wholesale prices be­ tween the periods of strong surge indicates - 48-49 what can be accomplished if balanced and orderly expansion is maintained. Improvement in our record of prices is needed in part because of the effect of infla­ tion on our balance of payments. Interna­ tional payments disequilibrium has been a problem for nearly a decade. In recent years we have made some progress in reducing the disequilibrium by improving our competitive 58-61 position and by using such measures as re­ straints on capital flows. But a problem still 708 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY remains, and our policy goals—both domes­ tic and international—could be jeopardized CAPACITY USE & UNEMPLOYMENT if we do not show more progress in moving toward equilibrium. Furthermore, any pride we might take in the overall economic performance of the postwar years is diluted when we consider the amount of lost production and idle re­ sources whether associated with short post­ war recessions or longer periods of slack in resource use. The cost of recessions is high, given our pressing social needs. To reduce further the extent and duration of these recessions, we must learn more about the underlying causes of economic fluctuations and how to forecast their occur­ rence. It is well known that the effects of monetary policy on the economy are not instantaneous. Since the lags are variable and sometimes substantial, poor forecasting can result in poor policy decisions. Granting that the forecasting art is still primitive, the solution, it seems to us, lies in improving the art, rather than abdicating to arbitrary rules the responsibility for stabilization policy. One area in which improvements are needed is in the understanding of interac­ tions between monetary policy and financial variables. Those developments we can ob­ INTEREST RATES serve—such as changes in interest rates— usually represent both the effects of policy and the public’s responses to a host of other influences. Rising interest rates, for example, may stem from either restrictive monetary policies or from rising demands for credit. Moreover, interest rates are only one of the many terms in the complex equation that determines credit flows. Terms other than price, and the availability of loan funds to borrowers, can change drastically in ways that interest rates fail to indicate. But since changes in interest rates and the associated variations in prices of financial assets are the 709 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 common thread that links the financial mar­ kets, their behavior is vital in any assessment MEASURES of MONETARY GROWTH I of monetary policy. Because of the difficulties in interpreting Per cent increase interest rate movements, some economists 1965 1966 advocate judging the posture of monetary policy by one or more measures of monetary Total Reserves 5 1 growth. There are times when a variety of quantity measures display parallel move­ Money Stock 5 2 ments, as those shown here did between Time Deposits 16 8 1965 and 1966. Then, the direction of pol­ icy, at least, is clear, although the degree of Bank Credit 10 6 restraint or ease may not be. The more serious problems arise when there is a need for finer judgments on the course and intensity of policy. Here, for ex­ MEASURES OF MONETARY GROWTH H ample, we show the annual rates of change _________________________Annual rates, per cent EXPANSION RECESSION i EXPANSION RECESSION in total bank reserves over recent periods '54 ’57 ' '57 '58 ’58 '60 ’60-’61 of expansion and recession (as defined by Total Reserves the National Bureau of Economic Re­ search). It appears from the total reserve measure that Federal Reserve policy was Money contracyclical: reserves rose more rapidly during recessions than during expansions. But growth of the money stock during Bank Credit these periods suggests a different conclusion: the money stock has sometimes risen more rapidly during expansions than in interven­ ing periods of recession. It is perhaps tempt­ ing to interpret this as evidence of misguided policy action. But the money stock is deter­ mined by the public’s demand for money interacting with monetary policy; this de­ mand is influenced by income, interest rates, expectations, and other factors. Thus, changes in the money stock must be inter­ preted in light of changes in other financial and nonfinancial variables that accompany them. In contrast to the changes in money, growth in bank credit over these economic cycles was contracyclical: largest during re­ cessions and smallest in periods of expan- 710 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND ECONOMIC ACTIVITY sion. To an important degree, these fluctua­ tions in bank credit reflected changes in the growth rate of time deposits. The public switched between market securities and time deposits, as monetary policies—interacting with credit demands—-altered the yield spread between these classes of assets. It would seem, therefore, that no single aggre­ gate banking measure tells the whole policy story. Moreover, the problems of interpreting monetary measures are magnified when the effects of policy spread more pervasively outside the banking system. During the 1950’s, the effects of monetary restraint were confined mainly to a relatively narrow Money & Time Dep. Nonbank Sav. Accts. range of financial assets. Restrictive policies Annual rate of increase, billions ol dollars during the 1 958-59 expansion, for example, reduced the growth of money and time de- । posits substantially, but the growth rate of nonbank savings accounts changed little. Last year, restrictive policies once again reduced the growth rate of money and time deposits. But with market rates on securities rising rapidly, and with commercial banks bidding more aggressively for available funds, net inflows of funds to nonbank sav­ ings institutions also fell abruptly before recovering late in the year. As monetary restraint spread to nonbank financial institutions, there were marked ef­ fects on the structure of private expendi­ tures. Though the money stock rose consid­ erably during the first half of last year, the mortgage market came under pressure fairly quickly, and housing starts and residential construction declined sharply. While purchases of consumer durable goods leveled off last year, and new capital appropriations of manufacturers declined after the second quarter, it seems evident that these developments were less closely related to financial restraint than was the 711 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 decline in residential construction. Not all sectors were affected equally by monetary Money & Time Dep. Nonbank Sav. Accts. policy during the year. These structural ef­ Annual rate of increase, billions of dollars fects raise important questions of equity and social priority, and it is necessary to take them into account in deciding when, how much, and what kind of policy actions are appropriate. With monetary restraint extended to a wider range of financial assets and institu­ tions, and with an uneven impact of restraint on spending, an assessment of monetary policy from the changes in any single varia­ ble goes further astray. Sophisticated mone­ tary analysis does not—and need not—rest its case on the behavior of free reserves, or PRODUCTIVITY & GROWTH the money stock, or bank credit, or interest rates, or any other single factor. Recogni­ tion of the need to comprehend the inter­ dependency among financial variables, and between financial and nonfinancial varia­ bles, underlies much of contemporary mone­ tary research, and the Board’s staff is devot­ ing a large share of its resources to that quest. It is clear that determination and interpretation of policy require a weighing of the movements in all these variables to­ gether and jointly assessing their meaning for the ultimate targets of monetary and fiscal policy—that is, employment, produc­ tion, and prices. For in the long run, the test of the success or failure of stabilization policies depends not on the growth of the money stock, nor on the level of interest rates, nor the size of the Federal deficit, but on the extent to which monetary and fiscal policies together fulfill the potential for real economic growth that our resources make possible. 712 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ In all cases the analyses and conclusions nors of the Federal Reserve System and of set forth are those of the authors and do the Federal Reserve Banks undertake studies not necessarily indicate concurrence by the that cover a wide range of economic and Board of Governors, by the Federal Reserve financial subjects, and other staff members Banks, or by members of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of some instances the Board finances similar the studies or papers that are summarized studies by members of the academic pro­ below are available in mimeographed form. fession. The list of Federal Reserve Board publica­ From time to time the results of studies tions at the back of each Bulletin includes that are of general interest to the economics a separate section entitled “Staff Economic profession and to others are summarized— Studies’’ that enumerates the studies for or they may be printed in full—in this sec­ which copies are currently available in that tion of the Bulletin. form. Study Summary VARIABLE-RATE MORTGAGES Robert Moore Fisher—Staff, Board of Governors Prepared as a staff paper in March 1967 Because nonbank thrift institutions had so The author concludes that under the com­ much difficulty in competing for savings in petitive conditions of our financial markets, the tightening financial markets of 1966, variable-rate mortgages would seem to offer interest has been renewed in the use of no basic answer to problems pertaining to mortgages carrying rates that vary in a portfolio flexibility. Widespread voluntary stated fashion with changes in other finan­ adoption of variable-rate loans appears un­ cial rates. This paper defines the term vari­ likely. The demand for variable-rate loans able-rate mortgages and discusses the effec­ would be timed in exactly the opposite fash­ tiveness of these loans in providing greater ion from the supply. Moreover competition flexibility in portfolio earning power and among lenders would tend to drive out liquidity. How the addition of indexed prices such loans. of various kinds affects the over-all function­ Serious questions of effectiveness, equity, ing of the economy as a whole and the in­ and implementation would arise in obtain­ flationary process is not explored. ing the official support needed to assure na- 713 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN • MAY 1967 tionwide lending with variable-rate mort­ Such policies would be questioned on gages. Public policies favoring variable-rate grounds of equity to existing borrowers and loans could not fully resolve problems in­ would work against improved marketability volved in lending long and borrowing short, of mortgages. They would also be difficult and in some cases would accentuate them. to implement. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Member Bank Income, 1966 The main points reflected in member sions for income taxes were virtually un­ bank statements of income and dividends changed from 1965. for the year 1966 are: ■ Larger dividend payments reflected ■ Net income for the year rose about 5 primarily the increase in total capital ac­ per cent to a new high, but in relation to counts, for dividend rates were up only total assets and total capital accounts it slightly. was at the lowest level since 1959. a The ratio of member bank capital to ■ Revenue from current operations rose risk assets (total assets less holdings of U.S. sharply. Primarily responsible for this rise Government securities and cash) again de­ was the substantial increase in earnings clined, reflecting the continued decrease in from loans—total loans outstanding in­ holdings of U.S. Government securities and creased and so did the interest rates paid the continued increases in loans and in other on them. Returns from other earning assets securities. The slow decline in the ratio of also increased. Higher yields offset the capital to total assets, which has been ap­ effects of the decline in average holdings of parent in recent years, continued. U.S. Government securities. And for other securities, particularly State and local gov­ ernment securities, both holdings and yields FACTORS IN HIGHER NET INCOME were larger than in 1965. (In millions of dollars) ■ All reported categories of current Change operating expenses also increased, but in­ from 1965 terest expense on time deposits accounted Increase in net income, total....................................................... 106 for most of the total increase. Interest pay­ Factors increasing net income, total..................................... 2,403 ments on time deposits now account for Increase in opera ting revenue from earning assets.... 2,230 On loans................................. 1.791 nearly half of member bank expenses. The On miscellaneous operating revenue............................ 237 On securities other than U.S. Government............. 186 average volume of these deposits was sub­ On U.S. Government securities...................................... 16 stantially above the 1965 level, and the Non op er at ing t ran sact ions........................................................ 169 Smaller net increase in valuation reserves on loans 144 average interest rate paid increased sharply. Larger net decrease in valuation reserves on loans 25 Decrease in provisions for taxes on net income.... 4 ■ In their nonoperating transactions, Factors decreasing net income, total....................................... 2,297 however, member banks experienced a “loss Increase in operating expenses............................................... 1,735 year.” On the securities they sold they sus­ Of interest on time deposits.............................................. 999 Of miscellaneous expenses.................................................. 470 tained much larger losses than in 1965, and Of salaries and wages.......................................................... 266 these losses offset much of the increase in Nonoperating transactions........................................................ 562 Increase in: their net current earnings. Hence, provi- Net losses on securities.................................................. 379 Miscellaneous losses......................................................... 87 Net losses on loans 1....................................................... 77 Decrease in: , Profits on sales of securities........................................ 17 Miscellaneous recoveries................................................ 1 Note—This article was prepared by T. A. Veenstra, Jr., Chief of the Financial Statistics Section of the 1 Includes recoveries credited and losses charged to undivided Board’s Division of Data Processing. profits or to valuation reserves. 715 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN • MAY 1967 EARNING ASSETS loans rose by $4.0 billion, and other loans AND OPERATING REVENUE to individuals (largely consumer loans) by about $3.1 billion. Average holdings of earning assets of mem­ ber banks during 1966 were $258.3 bil­ Average total holdings of Treasury securi­ lion, $19.1 billion higher than during 1965. ties declined $3.4 billion from the 1965 A reduction of $3.4 billion in average hold­ average, but this was more than offset by a ings of U.S. Government securities offset in $3.8 billion increase in holdings of “Other part the increases of $18.8 billion in loans securities,” mainly State and local govern­ and of $3.8 billion in “Other securities.” ment issues. The tax-exempt status of in­ Strong demands by customers for loans come from the latter issues makes their and the pressure of increasing costs of in­ ultimate yields relatively high. terest on time and savings deposits led mem­ Most of the $1.0 billion increase in hold­ ber banks to add to their holdings of those ings of securities other than Federal and types of assets that had the highest yields. State and local government issues reflected Average holdings of all important classifica­ participation certificates issued by Federal tions of loans increased. The largest dollar agencies. The reported increase reflected in increase—about $9.9 billion—was in com­ part the reclassification of some of these mercial and industrial loans. Real estate issues from “All other loans” to “Other MEMBER BANK INCOME, 1955-66 (Dollar amounts in millions) Item 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 Revenue........................................................... $5,343 $6,078 $6,771 $7,127 $8,075 $8,928 $9,217$10,154$11,169$12,386$13,842$16,072 On U.S. Govt, securities............................ 1,118 1,101 1 , 168 1,266 ! , 399 1 ,414 1 ,537 1 ,687 1,726 1 ,742 1 ,686 1 ,702 On other securities ........................................ 296 308 339 41 1 445 467 513 629 773 911 1 ,079 1,265 On loans.............................................................. 3,083 3,725 4,208 4,326 5,021 5.730 5,870 6,435 7,200 8,111 9,295 11,086 Service charges on deposits accounts.. 274 310 354 389 422 464 495 532 568 607 653 705 Other revenue................................................... 572 634 702 734 788 853 802 870 903 1 ,015 1,128 1,314 Expenses1................................................................. 3,265 3,680 4,222 4,617 5,140 5,655 6,074 7,041 7,931 8,895 10,206 11,941 Salaries and wages..................................... . 1 ,571 1 ,735 1 ,877 1 ,981 2,1 18 2,289 2,363 2,501 2,661 2,840 3,024 3.290 Officer and employee benefits.................. 331 364 393 420 448 507 Interest on time deposits............................ 543 650 927 1,123 1 ,280 1,434 1.720 2,358 2,858 3,384 4,214 5,213 Net occupancy expense............................... 424 459 501 550 598 654 Other expenses................................................. 1,151 1,295 1,418 1,512 1,742 1,932 1,236 1,360 1,519 1,701 1,922 2,277 Net current earnings before income taxes. 2,077 2,398 2,549 2,510 2,935 3,273 3,143 3,112 3,239 3,491 3,635 4,130 Net of profits and recoveries (+), losses and charge-offs, and changes in valuation reserves........................................................ 401 654 485 +96 904 344 181 308 329 570 653 1,046 Profits and recoveries (4-), losses and charge-offs: On securities2.............................................. 189 326 211 + 535 792 + 72 + 351 + 152 + 81 62 20 416 On loans2...................................................... 39 81 59 47 37 179 157 132 197 187 255 332 Other................................................................. 34 18 39 49 31 25 29 27 21 33 27 1 16 Net increase (or decrease, 4-) in val­ uation reserves: On securities................................................ + 37 + 32 + 10 189 + 140 64 123 26 +9 + 27 + 54 + 79 On loans......................................................... 176 261 187 153 184 148 224 275 200 315 405 261 Net income before related taxes.................. 1 ,676 1,744 2,063 2,606 2,032 2,929 2,962 2,805 2,910 2,921 2,983 3,084 Taxes on net income........................................... 691 718 895 1,148 775 1,241 1,250 1,110 1,079 998 880 876 Net income..................................................... 985 1,027 1,169 1,457 1,257 1,689 1,712 1,695 1,831 1,923 2,103 2,209 Cash dividends declared1............................... 501 547 604 646 690 735 793 832 878 961 1,058 1,145 Ratio of net income to average total capital accounts (per cent)......................... 7.9 7.8 8.4 9.7 7.9 10.1 9.6 8.9 9.0 8.8 8.7 8.6 Number of banks at end of year................ 6,543 6,462 6,393 6,312 6,233 6,174 6,113 6,047 6,108 6,225 6,221 6,150 1 Expenses were reclassified in 1961 as described on pp. 526-27 vided profits or to valuation reserves and excludes transfers to and of the May 1962 Bulletin. from valuation reserves. 2 Includes recoveries credited and losses charged either to undi­ 3 Includes interest on capital notes and debentures. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MEMBER BANK INCOME, 1966 717 CHANGES IN MEMBER BANK AVERAGE 1965. Revenue from other sources rose but LOANS AND INVESTMENTS, 1966 did not change significantly as a proportion (Dollar amounts are shown in millions) of the total. Change from 1965 average EXPENSES Average Item amount, Total expenses of member banks, at $11,­ 1966 Per­ Amount centage 941 million, were $1,735 million, or 17 per cent higher than in 1965. More than half Total loans and investments..... $258,281 $19,147 8,0 of this increase, $999 million, represented Loans 1.................................................... 177,557 18,783 11.8 C A o g m ric m u e lt r u ci r a a l l. a ... n .. d ... .. i . n .- d .. u ... s ... t .. r .. i . a ... l . . .. . . . . . . 6 5 8, , 6 2 3 2 0 0 9,8 3 5 1 1 7 1 6 6 . . 5 8 larger interest payments on savings and For purchasing and carrying securities.................................. 7,810 26 .3 other time deposits. Growth in these ex­ To financial institutions,.......... 16,520 1,846 12.6 Real estate........................................ 40,745 4,027 11.0 penses accounted for about 45 per cent of Other loans to individuals. •.. 37,425 3,084 9.0 All other............................................. 4,799 -14 -.3 the 1966 increase in operating revenues, and U.S. Government securities...... 42,286 -3,416 -7.5 for the year as a whole interest payments Treasury bills, notes, and cer­ tificates .................................... 17,810 -2,992 -14.4 absorbed 32.4 per cent of the total current Bonds 2....................................... - ■ 24,476 -423 -1.7 Other securities................................. 38,438 3,780 10.9 operating revenues of member banks. State and local government... 33,428 2,762 9.0 Other.................................................... 5,010 1,018 25.5 The dollar amount of interest-bearing ®Oas*^BUS«Si«»4.BH.TOB»-.S«3«aalEBIiSWCaSWWl deposits held by member banks, as well as i Totals are net (after deduction of valuation reserves); individual loan items are gross and do not add to totals. the proportion of these deposits to total 2 Includes small amount of guaranteed obligations. Note.—Averages are based on amounts reported for 3 call dates— deposits, has continued to increase for a at the beginning, middle, and end of each year—and they reflect the classification of loans and securities in effect on the particular call number of years. Since 1961 these deposits date. Beginning June 30, 1966, “Loans to fanners directly guaranteed by CCC” were reclassified as securities, and Export-Import Bank portfolio fund participations were reclassified from “All other loans’’ have more than doubled, and they now rep­ to “Other securities.” This reduced total loans and increased “Other securities” by about $900 million for 2 call dates in 1966. resent nearly 45 per cent of average total Federal funds sold arc included as “Loans to financial institutions,’’ deposits in member banks as compared with securities,” but there was also some growth 33 per cent in 1961. Furthermore, the ef­ in member bank holdings of these invest­ fective average rate paid on such deposits ments during the year. also has been rising sharply. In 1961 the Operating revenues of all member banks average was 2.73 per cent. In 1966 it was totaled $16,072 million in 1966. This was 4.11 per cent. $2,230 million, or 16 per cent more than in The second most important expense item 1965. Revenue on loans rose by $1,791 —salaries and wages of officers and em­ million, or 19 per cent. The increase re­ ployees—was $3,290 million, and it ab­ flected both larger holdings and an in­ sorbed 20.4 per cent of operating revenues crease—to 6.24 per cent from 5.85 per cent in 1966. Member banks also incurred ex­ in 1965—in the average rate of return. penses of $507 million for fringe benefits— Similarly, the growth of $186 million in such as hospitalization and life insurance revenue on “Other securities” derived from premiums, unemployment and social secur­ a combination of larger average holdings ity taxes, and current contributions to retire­ and a higher average rate of return. ment funds for officers and employees. This The average rate of return on U.S. Gov­ accounted for another 3.2 per cent of their ernment securities increased from 3.69 to operating revenues during the year. 4.02 per cent, but with average holdings de­ Expenses relating to the occupancy of clining, the revenue from this source—$1,­ bank premises amounted to $654 million 702 million—was only slightly more than in after a deduction for rents received. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN • MAY 1967 PROFITS, RECOVERIES, LOSSES, AND securities that usually tend to reduce net TRANSFERS TO VALUATION RESERVES income. The net effect of all nonoperating trans­ Nonoperating transactions in loans, in­ actions was to reduce member bank net cluding the net result of transfers to and income by $1,046 million in 1966. This from valuation reserves, reduced reported compared with a reduction of $653 million net income by $593 million. This compared in 1965. The larger net reduction in 1966 favorably with the record net reduction of resulted almost entirely from larger losses $660 million reported in 1965. Net income on sales of securities. Member banks have was reduced further by $116 million as a shown a net gain from nonoperating trans­ result of losses and charge-offs on all other actions in only three postwar years (1946, bank assets. 1954, and 1958), when profits on sales Security transactions have increased net of securities in rising markets more than income in most years since 1959, but in 1966 offset the other transactions on loans and these transactions resulted in a net decrease MEMBER BANK INCOME, BY CLASS OF BANK, 1966 AND 1965 (Dollar amounts in millions) Reserve city banks Total Country banks Item New York City City of Chicago Other 1966 1965 1966 1965 1966 1965 1966 1965 1966 1965 Revenue.................................................................................. $16,072 $13,842 52,775 $2,296 $689 $576 $6,036 $5,240 $6,571 $5,730 On U.S. Government securities.................. 1,702 1,686 175 I8O 58 60 519 549 950 897 On other securities.................................................... 1,265 1,079 210 204 52 52 446 374 556 448 On loans............................. . 11,086 9,295 1,986 1,563 479 382 4,285 3,616 4,337 3,734 All other,......................................................... 2,018 1 ,781 405 349 100 82 786 700 728 651 Expenses............................................................................. , 11,941 10,206 1,985 1,607 479 401 4,500 3,871 4,977 4,327 Salaries and wages..................................................... 3,290 3,024 481 441 109 10Q 1,238 1, 139 1,462 1,345 Officer and employee benefits............................... 507 448 f0( 92 24 20 184 163 199 173 Interest on time deposits........................................ 5,213 4,214 949 713 231 192 1,992 1 ,632 2,042 1,677 Met occupancy expense........................................... 654 598 117 107 20 17 236 219 281 255 AH other............................................................. 2,277 1,922 337 255 96 73 851 719 993 876 Net current earnings before income taxes...... 4,130 3,635 790 688 209 175 1,537 1,369 1,594 1,403 Net of profits and recoveries (4-), losses and charge-offs, and changes in valuation reserves............................................................................. 1,046 653 263 183 49 10 371 224 363 235 Profits and recoveries (+), losses and charge-offs: On securities!............................................... 416 20 142 +1 40 + 3 132 15 103 9 On loans t.................................................................. 332 255 59 40 9 9 123 88 140 118 Other............................................................................ 116 27 3 6 +1 91 10 21 12 Net increase (or decrease, +) in valuation reserves: On securities........................................... +79 + 54 +2 + 17 +7 + 5 +57 + 19 + 13 + 14 On loans..................................................................... 261 405 61 154 7 10 82 130 112 111 Net income before related taxes............................... 3,084 2,983 528 506 161 165 1,165 1,144 1,231 1,168 Taxes on net income....................................................... 876 880 145 131 51 51 352 358 328 340 Net income........................................................................... 2,209 2,103 383 375 110 114 813 787 902 828 Cash dividends declared2.................................. 1,145 1,058 259 240 49 45 453 426 383 347 Ratios (per cent); Net current earnings before income taxes Average total capital accounts....................... 16.1 15.1 15.2 14. 1 18.0 16.0 16.6 15.6 15.9 15.1 Average total assets............................................ 1.28 1.21 1.27 1.21 1.44 1.28 1.28 1.22 1.26 1.20 Net income to— Average total capital accounts....................... 8.6 8.7 7.4 7.7 9.5 10.4 8.8 9.0 9.0 8.9 Average total assets................................... .68 .70 .62 .66 .75 .83 .68 .70 .71 .71 1 Includes recoveries credited and losses charged either to undi­ front valuation reserves. vided profits or to valuation reserves and excludes transfers to and 2 Includes interest on capital notes and debentures. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MEMBER BANK INCOME, 1966 719 of $337 million. Losses on securities sold, at per cent of net income before taxes; in 1965 $413 million, were the largest since 1959. it was 30 per cent. Not only did banks find it necessary to NET INCOME AND CASH DIVIDENDS liquidate securities in a declining bond mar­ Net income after taxes amounted to $2,­ ket to finance expansion of their loans, but 209 million, 5 per cent more than in 1965. also some banks found it advantageous to But both bank assets and bank capital in­ take book losses so as to reduce their tax creased more than this. Therefore, the ratios liabilities. Since realized capital losses on of net income to total capital accounts and securities are an offset against taxable in­ to total assets were the lowest since 1959, come, banks generally attempt to concen­ another year in which losses on securities trate these losses in a single tax year, and were also a significant factor. Cash dividends declared amounted to many did that in 1966. $1,145 million, $87 million more than in Member banks increased their valuation 1965. This total represented 52 per cent of reserves on loans by $261 million. These re­ net income after taxes, slightly more than in serves have expanded yearly since 1948, the previous 2 years. The ratio of cash when they were first reported. Valuation dividends to average total capital accounts reserves on securities were decreased by $79 was 4.5 per cent, slightly higher than in million. other recent years. Retained income for the year totaled $1,­ INCOME TAXES 064 million and accounted for 79 per cent Although net income before taxes increased, of the increase in total capital accounts dur­ provisions for income taxes were $4 million ing the year. less in 1966 than in 1965. The decline re­ Revenues, expenses, and income by re­ flected two factors: the increase in the serve classifications of member banks for proportion of net income derived from tax­ 1966 and 1965 are shown in the table on exempt investments, and the tax effect of the opposite page. Detailed figures for in­ security losses. The total provided for in­ come, expenses, and related items appear on come taxes, $876 million, represented 28 pages 862-70. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Revision in Quarterly Survey of Interest Rates on Business Loans The Federal Reserve Quarterly Survey borrow at lower rates than small firms—in of Interest Rates Charged by Banks on Busi­ the first or final months of each quarter of ness Loans has been revised beginning with the calendar year. the first Survey in 1967. While the changes Exclusions. To provide for increased are numerous, they do not alter the basic homogeneity in the character of the loans character of the Survey. Rather, they are reported, two types of loans are being ex­ generally in the nature of adjustments or cluded from the Survey—namely, loans to refinements, designed to improve the quality foreign businesses and business instalment of the information collected and published loans. It has been found that these two and to take account of shifts in the structure types of loans were not reported by a sub­ of bank lending to businesses since the last stantial number of banks in the old Survey. revision of the Survey in 1948. Nevertheless, Moreover, the rates charged on both types in the aggregate, they do have a small of loans are generally higher than those effect on the averages, and they preclude charged on regular business loans to do­ precise comparability between the old and mestic customers, and they are subject to the revised series. The new data will ap­ different influences. Thus, the exclusions pear regularly in the Bulletin beginning should result in rate averages that are some­ with this issue (see page 814) and also what lower but more representative of nor­ in the Board’s E.2 press release. mal business loans than those previously available. Business instalment loans are more simi­ NATURE AND PURPOSE OF CHANGES lar to consumer instalment loans than to The most apparent change is in the sched­ other commercial and industrial loans made ule of reporting periods, which has been by banks—including regular term loans, shifted from the last month of each calendar which often are repayable in instalments. quarter to the middle month of the quarter. The typical instalment loan is an inter­ Thus, the first survey on the revised basis mediate-term credit for financing specific covers new loans and renewals of outstand­ items of machinery or equipment, and it is ing loans made during the first 15 calendar usually secured by a chattel mortgage on days of February, and subsequent surveys that asset. The effective interest rate is will cover loans made in the first half generally almost twice the stated rate, be­ of May, August, and November. The prin­ cause the stated rate is applied to the original cipal reason for this change in schedule is amount of the loan rather than to the de­ to avoid distortions in the interest rate clining balance, as in the case of regular averages stemming from the large and vari­ business term loans. In large banks, business able amounts of borrowing for income tax instalment loans often are administered in a payments by large firms—which are able to separate instalment loan department along 721 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN • MAY 1967 with automobile and other consumer loans, numerous or homogeneous to yield ana­ and the rates and other terms applicable to lytically useful rate averages. such loans tend to be influenced by develop­ A separate category for revolving credits ments in consumer lending. will increase the homogeneity of the rate It is recognized that banks extend a sub­ information reported and make the result­ stantial volume of credit to businesses, ing averages more meaningful. These credits, particularly smaller businesses, through in­ while generally governed by a contract of 1 stalment loans. Thus, rate information on to 2 years maturity, often are disbursed these loans is needed in order to obtain a through short-term notes of, say, 90 days complete picture on the structure and maturity. Thus, the rates charged on these level of rates charged on business loans. are more similar to those on term loans But in view of the small average size of busi­ than to short-term loans. Also, the rates on ness instalment loans, their special rate the individual notes made under revolving characteristics, and their separate adminis­ credits may not necessarily reflect the cur­ tration at respondent banks, the present Sur­ rent level of rates on new loans. Since re­ vey does not provide an optimum arrange­ volving credit loans in the previous Survey ment for collecting rate information on this were reported as short-term loans by some type of credit. respondents and as term loans by others, the The exclusion of foreign loans also will rate information for both categories will be help to improve the usefulness of the series improved by the separation. as a measure of rates charged on loans to In addition, for each ordinary term loan domestic businesses. Because of the greater reported, respondents are now being asked difficulty in credit review and the frequently to state the maturity date. This information larger risk in extending credit to foreign than will provide the basis for some analysis to domestic customers, these loans tend to not only of the maturity structure of term have higher rates than domestic loans. Their loans but also of the relationship between exclusion will ease the reporting burden interest rates and loan maturity. A decision on respondent banks because foreign loans regarding possible publication of informa­ often are administered in a separate depart­ tion on term loan rates is being deferred ment of the bank. until the results of several Surveys have Reporting. Modifications have also been been analyzed. made in the reporting of loan maturities. To obtain a somewhat more precise meas­ The major change has been to substitute a ure than formerly of the interest cost on three-way for a two-way maturity classifi­ business loans, the revised Survey requires cation. Previously, respondents were asked respondents to indicate whether the interest to indicate for each loan whether it had a charge is calculated on a discount basis or maturity of 1 year or less (short-term loan) accrued on the unpaid balance. Where a or more than 1 year (term loan); in the discount basis is used, the actual interest cost revised Survey, a new category has been to the borrower is slightly higher than the added to cover revolving credits. In the past, stated rate. With the additional information published rates were based only on the on the method of calculating interest, all short-term loans, because the term loans rates can be converted to a uniform effective­ reported in each Survey were not sufficiently rate basis. In addition, this information can Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INTEREST RATES ON BUSINESS LOANS 723 be used for observing and analyzing any in the Appendix, page 727) instead of three shifts that might occur, either cyclically or (New York City, other northern and eastern secularly, in the methods banks use in com­ cities, and southern and western cities). puting interest charges. Weighting procedure. In the revised Sur­ Expanded coverage. In keeping with the vey the reported information on interest traditional orientation of the Survey to pro­ rates will be converted into averages by vide information on interest rates charged using weighting procedures similar to those by large banks in financial centers, the panel employed in the old Survey.1 However, be­ of respondents has been enlarged to reflect cause of significant shifts over the years in changes in the structure of business lending the size and area distribution of bank loans since the previous panel was selected. The to business, the weights derived from the number of financial centers covered by the 1946 Survey were no longer appropriate. Survey has been raised from 19 to 35 and Moreover, the extensive changes in cover­ the number of respondent banks from age incorporated in the current revision 66 to 126. In general, financial centers meant that even if weights derived from re­ are being included in the Survey if cent interest rate Surveys on the old basis the banking offices in that center had were used, they would not be representative. roughly $150 million or more of business Accordingly, a new set of fixed weights loans outstanding in December 1964. As is to be derived from the revised Survey. a rule individual banks in each center were Weights to be used in the first three Surveys included if their business loans totaled $40 will be based on the size of loan and area million or more; there were some excep­ distribution of the amounts of loans re­ tions where the volume of loans in the re­ ported in the first quarterly Survey. After porting center covered by large respondents the fourth Survey is completed, new weights was unusually high and the additional small will be derived from the combined data of banks would not appreciably influence the the first four Surveys, and these will be used averages. About five banks in the old re­ to revise data for those Surveys and in porting panel fell below the cutoff, and they compiling the series for the next 4 years. At were dropped from the Survey. Respondents the end of this 5-year period, it is planned in the revised Survey, as in the previous one, that the weighting system will be reviewed will continue to report information on each and any necessary revisions will be made. loan above prescribed size cutoffs made in Size categories. Since the last revision of the 15-day reporting period except for the Survey, the size distribution of bank large branch systems, where sampling is loans to businesses has shifted substantially permitted. upward, particularly toward loans of $1 This expansion in coverage suggested the million and over. This shift has suggested the desirability of refining the geographic group­ desirability of creating additional loan-size ings of reporting centers that are used categories for publishing information on for calculating and publishing the rate rates and volume of loans reported. The averages. Beginning with the February Sur­ availability of additional size-of-loan detail vey, average rates will be published for six also should help to pinpoint the rate effects geographic areas (the areas and the report­ 1 See Federal Reserve Bulletin, March 1949, ing centers in the revised Survey are listed pp. 234 and 235. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN • MAY 1967 of fluctuations from quarter to quarter in the per cent larger than the volume reported by volume of loans reported, which often are the 66 respondents in the old Survey; this substantial in the larger loan categories. smaller increase reflects the fact that the Accordingly, instead of the two major new respondents generally are smaller. groupings above $100,000 used in the old Because the new Survey incorporates Survey ($100,000-199,999 and $200,000 changes in both concept and sample, with and over), the revised Survey has three no provision for complete one-time reporting ($100,000-499,999, $500,000-999,999, on both the old and the new basis, it is not and $1,000,000 and over). possible to isolate all of the effects of the re­ The Bulletin table will show not only visions on the amount of change in short­ the interest rate averages in each loan-size term rates between the Surveys in December category, as previously, but also the per­ and in February. However, it has been pos­ centage distribution of the dollar amount sible to segregate the data reported in Feb­ of loans reported at each rate or in each ruary by the 66 banks in the old Survey that rate range. This information previously has are retained for the new Survey and to tabu­ been available only in the E.2 press release. late data for these banks separately. These tabulations provide the basis for determining EFFECT OF CHANGES the rate effects for the three revisions in Expansion of the sample has increased both which such effects can be measured— the number and the volume of loans on namely, changes in the sample of reporting which rate information is reported; for the banks, in the method of calculating the ef­ number the increase was substantial. In Feb­ fective rate for discounted loans, and in the ruary the 126 respondents in the new Sur­ weights for size of loan and geographic vey reported information on nearly 36,000 area used in calculating the rate averages. individual short-term loans. This was 74 The net effects on the short-term rate aver­ per cent more than the number reported by ages of the remaining changes—exclusion of the 66 banks in the old Survey that were foreign, business instalment, and revolving retained in the new sample, as shown credit loans and change in timing of the Sur­ in Table 1. The increase in dollar amount of vey—cannot be ascertained. The exclusion loans reported by all respondents was 28 of foreign and business instalment loans TABLE 1 COMPARISON OF SHORT-TERM BUSINESS LOANS REPORTED BY OLD AND NEW SAMPLES OF RESPONDENT BANKS, FEBRUARY 1-15, 1967 (Amounts are shown in thousands of dollars) Amount Number Area Old New Per­ Old New Per­ sample sample Increase i c n e c n re ta a g s e e sample sample Increase i c n e c n re ta a g s e e All centers................................................................... $2,969,100$3,790,782 $821,682 27,7 20,594 35,900 15,306 74 3 New York City................................................................. 841,109 907,419 66,310 7 9 2 568 2,780 212 8 3 Other Northeast............................................................. 398 001 616 J 43 218 142 54 8 5 140 11 089 5 949 115 7 North central............................................. 1,058,717 I,231,976 173,259 16*4 4,539 7,229 2*690 59^3 Southeast............................................................................. 143,812 '252/116 108,298 75.3 3,526 5'434 1 908 54.1 Southwest. ...................................................................... 299^759 545’574 245,815 82.0 2,817 7,064 4,247 150.8 West coast......................................................................... 227,702 237,560 9,858 4.3 2,004 2,304 300 15.0 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INTEREST RATES ON BUSINESS LOANS 725 TABLE 2 RATES ON SHORT-TERM BUSINESS LOANS REPORTED BY OLD AND NEW SAMPLES OF RESPONDENT BANKS, FEBRUARY 1-15, 1967 (Weighted averages; per cent per annum) AH sizes Size of loan (in thousands of dollars) Area 1-9 10-99 100-499 500-999 1,000 and over New Old sample sample New Old New Old New Old New Old New Old All centers.................................. 6.13 6.08 6.73 6.81 6.63 6.68 6.33 6.32 6.13 6.09 5.90 5.88 New York City................., 5,86 5 85 6.55 6.55 6.49 6.48 6.08 6.07 5.89 5.86 5.77 5.76 Other Northeast............... 6.45 6.41 6.75 6.75 6.85 6.83 6.57 6.52 6.39 6.33 6.09 6.07 North central...................... 6.11 6.06 6.80 6.72 6.65 6.62 6.39 6.35 6. 17 6.14 5.92 5.91 Southeast.............................. 6.08 6.14 6,58 6.75 6.32 6.45 6.06 6.08 6.03 6.06 5.84 5.82 Southwest......................... 6.18 6.17 6.65 6.93 6.50 6.71 6.27 6.29 6.13 6.11 5.95 5.95 West coast............................ 6.29 6.27 7.26 7.29 6.90 6.91 6.49 6.49 6.27 6.26 6,03 6.03 Note.—All rates are derived in accordance with reporting and processing procedures established for the new Survey. Thus, they exclude foreign and business instalment loans and revolving credits and are based on weights derived from the size and area distribution of loans reported in the February Survey. would tend to lower the averages while the confined to the old sample of banks and the exclusion of revolving credit loans and the averages calculated on the basis of the old shift of the reporting period away from procedures. These adjusted rates are com­ quarterly tax-borrowing months probably parable with the data for the Surveys in De­ would tend to raise them. The net effect of cember and earlier on the old basis—except all these changes on the rate averages is for the revisions mentioned above for which likely to be slightly downward. the rate effects cannot be ascertained. The net effect of the expansion of the In all geographic areas except southern sample of reporting banks was to raise the and western cities, the net effects of all meas­ average rate 5 basis points above the level urable changes on the over-all rate averages that would have been obtained from data were small. In other words, the upward reported by the old sample of respondents, rate effects from expansion of the sample as shown in Table 2. In the small loan cate­ and the new method for calculating interest gories, rates reported by the new respond­ on discounted loans were about offset by ents generally tended to be lower than those the downward effects stemming from the re­ reported by respondents in the old Survey; visions in weights, which reflected mainly for larger loans, the new respondents charged the increased influence on the averages of somewhat higher rates than did the old. the larger loans carrying relatively low in­ Table 3 summarizes all the measurable terest rates. Within individual loan-size cate­ effects of the revisions on short-term interest gories, however, the revisions in some cases rates, including the effects of expansion of were substantial. The effects of the change the sample. In this table the algebraic signs in the method used for calculating the in­ of these effects are the opposite of their terest charge on discounted loans was much actual effect on the level of rates. This makes greater in New York City and in other it possible to derive from the rate averages northern and eastern cities than in southern shown by the new Survey, through subtrac­ and western cities—reflecting differences in tion, the rate averages that would have been the volume of discounted loans reported. obtained in February had the Survey been Discounted loans accounted for almost half Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN • MAY 1967 the number and one-third the dollar volume other northern and eastern cities compared of all short-term loans reported by old-Sur­ with less than one-sixth the number and vey respondents in New York City and in dollar amount in southern and western cities. TABLE 3 EFFECTS OF SURVEY REVISIONS ON SHORT-TERM INTEREST RATES, FEBRUARY 1-15, 1967 (Per cent per annum) Size of loan (in thousands of dollars) A11 Rate, and type of adjustment sizes 1-9 10-99 100-199 200 and over AU centers: Average rate, new Survey.................................................................................. 6.13 6.73 6.63 6.42 6 01 Adjustments to eliminate measurable effects of revisions—Total. -.01 + .02 -.03 -.08 -.04 Expansion of sample........................................................................................ - .05 + .08 + .05 — 01 — .03 Change in rate calculation for discounted loans 1............ — .03 - .04 —. 04 — .03 — 02 Changes in weights '........................................................................................ + .07 — .02 — .04 - .04 + .01 Average rate, adjusted 2..................................................................................... 6.12 6.75 6.60 6.34 5.97 Now York City: Average rate, new Survey................................................................................... 5.86 6.55 6.49 6.16 5.81 Adjustments to eliminate measurable effects of revisions—Total. + .02 - .08 -.07 -.06 -.02 Expansion of sample...................................................................................... -.01 — .01 - .01 - .01 — .01 Change in rate calculation for discounted loans 1. — .04 — .07 — .06 — .05 — .03 Changes in weights 1........................................................................................ + .07 + •02 Average rate, adjusted 2,, ............................................................................. 5.88 6.47 6.42 6.10 5.79 Other northern and eastern cities: Average rate, new Survey................................................................................... 6.23 6.75 6.76 6.56 6.11 Adjustments to eliminate measurable effects of revisions—Total. + .01 -.10 -.06 -.09 + .02 Expansion of sample........................................................................................ -.07 - .03 — .02 — .05 — .05 Change in rate calculation for discounted loans 1............................ - .03 — .05 -.04 — .04 — .03 Changes in weights 1...................................................................................... + .11 -.02 +.16 Average rate, adjusted 2..................................................................................... 6.24 6.65 6.70 6.47 6.13 Southern and western cities: Average rate, new Survey.................................................................................. 6.18 6.72 6.53 6.34 6.05 Adjustments to eliminate measurable effects of revisions—Total. + .14 + .20 + .13 + .04 + .06 Expansion of sample..........•........................................................................... + .21 + . 15 + .06 Change in rate calculation for discounted loans 1................. — .02 -.01 — .03 - .02 Changes in weights 1....................................................................................... + .16 + .01 + .06 Average rate, adjusted 2...................................................................................... 6.32 6.92 6.66 6.38 6.11 1 Calculated from data reported by 66 banks in the old Survey. are not entirely comparable with those published for December and 2 The adjusted rates are those that would be obtained by processing earlier periods because of the exclusion of foreign, business instal­ the February Survey data from the 66 respondents in the old Survey ment, and revolving credit loans and the shift in reporting period for according to the procedures used in the old Survey. These averages which the rate effects cannot be ascertained. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

(HEEB£SL_fiAIESJ3fc^^_____________._________ __________________727. APPENDIX GEOGRAPHIC AREAS AND REPORTING CENTERS FOR REVISED QUARTERLY INTEREST RATE SURVEY *v»^a9sMwi9%«vw>aAtf«^«aWi?>eKs^0«E8As»M*c««weMM»Mzcass<>t«««k*^inB««>2a*^n«^^^'^^^»»«*^««**<^'4*^»«dS3^«^3d*Ma^K^&>&>7*dC^*^^«»^sM»>^a^c»TV7T<^***««<^«^^ Geographic area Reporting center Geographic area Reporting center New York City New York City Southeast Baltimore Richmond Other Northeast Boston Washingon, D.C. Hartford and Providence Charlotte Buffalo Atlanta Nassau County, N.Y. New Orleans Rochester Nashville Newark Southwest St. Louis Philadelphia Louisville North central Cleveland Memphis Pittsburgh Kansas City Cincinnati Oklahoma City and Tulsa Chicago Denver Detroit Dallas and Fort Worth Indianapolis Houston Milwaukee West coast San Francisco Minneapolis and St. Paul Los Angeles Seattle Portland Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Monetary Policy and the Residential Mortgage Market In March of this year the Board of Gov­ monetary policy on the availability and ernors was requested by the Subcommittee price of mortgage credit in 1966; and (3) on Housing and Urban Affairs of the Com­ recommendations for corrective action to mittee on Banking and Currency of the assure a more even flow of credit to meet U.S. Senate to prepare (1) a statement on the home financing needs of our people at mortgage credit as it relates to the activities a price they can afford to pay. of the Board in carrying out its monetary The following report was submitted to the policy; (2) an evaluation of the effect of Subcommittee on May 8, 1967. RESIDENTIAL MORTGAGE CREDIT AND THE ACTIVITIES OF THE FEDERAL RESERVE BOARD IN CARRYING OUT ITS MONETARY POLICY The ultimate goals of monetary policy are growth, and price stability—must always general in nature—to contribute toward take into account the impact of monetary achieving high employment with sustainable developments on current and prospective growth, a stable dollar at home, and over­ conditions within particular sectors of the all balance in our financial transactions economy. Critical difficulties emerging in with other nations. The primary instruments any one sector could affect the sustainability through which monetary policy strives to of over-all growth. Or they could affect the further these objectives include changes in liquidity and solvency of major segments the cost and availability of credit through of our financial system. open market operations in Government se­ One sector that the Federal Reserve fol­ curities for the account of the Federal Re­ lows closely in carrying out monetary policy serve Banks, changes in reserve requirements is the residential mortgage market—the na­ of member commercial banks, and changes tion’s largest single net user of individual in the rates and conditions under which savings. Developments within this sector member banks can borrow from the Federal have obvious implications for our ability to Reserve Banks. With these general goals improve living standards, for the sustain­ and instruments as given, the monetary pol­ ability of aggregate demands for goods and icy of the Federal Reserve has been and services, and for prices of a major service— must continue to be oriented toward the shelter. They also have a direct bearing on broad domestic and international economic the viability of private financial institutions scene. that held some $225 billion in loans secured But Federal Reserve actions to influence by residential real estate at the end of last the ultimate aggregate targets of monetary year. Indirectly, developments in residen­ policy—maximum employment, economic tial finance—and through this market to 728 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 729 residential construction—have widespread finance charges), or almost 88 per cent of effects on other types of credit, on produc­ the average purchase price. Homebuilders tion, and on employment. rely perhaps even more heavily on short­ term construction financing, which is ordi­ Periods of credit restraint. In periods when narily available only if commitments for aggregate demands for goods and services permanent mortgage financing can also be tend to run ahead of the supply of resources obtained. Altogether, demands for residen­ available to meet these demands, the task of tial mortgage credit accounted for as much general economic policy is to initiate actions as three-tenths of total net short-term and that will discourage enough spending to long-term funds raised in all credit markets head off an upward spiral in prices and in 1965. wages. Monetary instruments are used to­ These special characteristics of housing ward this end by reducing the availability outlays and their financing make residential of credit and by raising its cost. But the construction as well as used-home transac­ intensity of the monetary attack on inflation tions inherently vulnerable to cyclical fluc­ in any given period will depend on the ex­ tuations. For this reason, unless monetary tent to which fiscal policy is also helping to actions are to be abandoned as an instrument check spending. of economic policy, housing is likely to con­ For economic policy to be effective under tinue to show larger variations between pe­ these circumstances, it is clear that aggregate riods of monetary ease and restraint than spending has to be cut somewhere, to levels most other types of spending. below those that would otherwise prevail. In practice, the types of spending most af­ Monetary policy and housing markets in fected by monetary restraint are those in 1966. In 1966, however, the cyclical impact sectors where demand is postponable and of economic events was unusually marked credit financing accounts for a large share on residential construction and on the ex­ of total outlays. Such characteristics are, of change of used houses. While policy-induced course, most typical of outlays for durable pressures to reduce spending were widely goods, and among these housing is a prime felt throughout the economy, the weight of example. these constraints on the housing market was Use of long-term credit is unusually large particularly severe. The magnitude of the in the financing of housing, reflecting not contraction in outlays for housing reflected only the extreme durability and the rela­ the interaction of several factors. tively large unit price of the structures in­ With the escalation of U.S. participation volved, but also the substantial number of in the Vietnamese war, aggregate spending dwellings built or traded in any one year. —already at a high level as a result of the Buyers of both new and used residential ongoing business capital boom—began to properties rely heavily on long-term mort­ intensify upward pressures on prices and gage financing. In the case of new, 1-family wages. Although a number of fiscal actions homes built for sale, for example, an aver­ were initiated in the first half of 1966 to age of 95 out of every 100 dwellings sold limit the growth of business and consumer in 1965 used mortgage credit to some de­ spending, the lion’s share of the responsi­ gree, with the average credit transaction in­ bility for checking inflationary tendencies volving a loan of nearly $19,000 (excluding was placed on monetary policy. In these Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN • MAY 1967 circumstances, with business demands for businesses, which had been growing at an credit remaining very heavy, interest rates unusually rapid rate. Faced with substan­ rose sharply. The resulting intense competi­ tial potential run-offs in large-denomina­ tion certificates of deposit as market yields tion for funds created special pressures on rose above the rate ceiling on CD’s, banks the nonbank thrift institutions that tradi­ might otherwise have sold securities in­ tionally finance the bulk of housing activity. stead of cutting back on business lending As interest rates rose generally, these institu­ in order to adjust their positions. The tions found an increasing share of total sav­ adverse impact on interest rates of heavy ings flows being allocated directly to securi­ bank liquidations of securities, in turn, ties markets. Consequently, funds available would have spilled over into other finan­ for housing were substantially curtailed. cial markets, including the residential As these unusual pressures on thrift in­ mortgage market. Toward the end of the stitutions—and through them on the hous­ year the September 1 letter was rescinded ing market—became apparent, the Federal when it became evident that underlying Reserve took a number of actions designed economic conditions had changed. —In late September the Board—acting to moderate their impact. These steps were under new temporary authority that intended to redistribute some of the burden broadened the basis for setting interest on thrift institutions to other sectors of the rate ceilings on time and savings deposits economy, in part by dampening the interest —lowered the maximum interest rate that rate competition that was contributing to member banks could pay on individual the highest rates paid for savings in many time deposits of under $100,000. Federal decades. agencies that regulate savings and loan associations and mutual savings banks also —In July the Board of Governors low­ established similar ceilings under this new ered the Regulation Q ceiling on maximum authority. These joint actions prevented interest rates that member commercial further acceleration in the maximum inter­ banks could pay on new multiple-matu­ est rates paid on savings, although some rity time deposits. In the same month the lenders that had been below the new ceil­ Board raised reserve requirements on time ings initiated additional rate increases. deposits held by each member bank in —Finally, during the period of market excess of $5 million. Another increase in stringency that developed last summer, reserve requirements was made in Septem­ the Board of Governors made temporary ber, when bank issues of promissory short­ arrangements under which the Federal Re­ term notes were also brought under serve Banks could provide emergency reserve-requirement and interest-ceiling credit facilities, under specified conditions, regulations. These actions, along with to nonmember commercial banks or to retention of the 4 per cent ceiling on rates nonbank depositary-type institutions, in­ that banks could pay for savings deposits, cluding savings and loan associations and exerted limits on the capacity and incen­ mutual savings banks. While this emer­ tive of banks to compete for savings with gency facility was not expected to be other types of depositary institutions that needed and was never used, it offered as­ ordinarily invest a larger share of their surance that aid could be made available resources in mortgages than banks do. against the remote possibility of excep­ —Early in September the Presidents of tional outflows of funds that could not be the Federal Reserve Banks sent a letter to met through usual adjustment procedures. all member banks asking for their coopera­ The temporary arrangement, which later tion in curtailing expansion in loans to expired, was not intended to be a long- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 731 run source of Government credit for the market interest rates, as in 1955, 1959, and residential mortgage market. However, the 1966. This behavior has emphasized that System has indicated its willingness to an important, if marginal, portion of deposi­ reinstitute this arrangement if it should tary flows always comes from yield-con­ become desirable to do so at some future scious savers who are in a position to con­ date. sider direct market investment as a conven­ Looking back on the events of 1966, it ient alternative. Market instruments, such seems clear that a different mix of monetary as U.S. Treasury obligations, commercial and fiscal policy—which placed more reli­ paper, Federal agency securities, and cor­ ance on an increase in tax rates or a cutback porate and municipal bonds, may lack the in Federal spending than on monetary re­ degree of protection assured to holders of straint—would have helped to moderate the insured savings accounts and shares. But steepness of the general advance in interest they offer the immediate attraction of higher rates. This in turn would have created less yields over a range of maturity terms and— extreme pressures on savings flows to thrift on longer maturities—the prospect of capital institutions. At the same time, however, gains if going market rates should eventually it is also clear that even if increases in inter­ decline. Stocks, of course, usually provide est rates had been more moderate, the close some current yield plus the chance of rapid traditional tie between housing and credit accruals in capital value. advanced by the specialized depositary-type In addition to these long-standing struc­ lenders would have contributed to a signifi­ tural peculiarities of residential finance, the cant cutback in the supply of credit availa­ impact of credit restraint on housing in ble for both new and used housing. Because 1966 was affected by special mortgage mar­ thrift institutions lend long and borrow ket conditions, which had developed as an short, they are peculiarly vulnerable to outgrowth of tendencies begun earlier in the general increases in interest rate levels. The 1960’s when the supply of mortgage credit relative rigidity of earnings on their essen­ was abundant. Before turning to a consid­ tially long-term assets limits the ability of eration of the types of reforms that might be these institutions to compete for funds in adopted to lessen the disproportionate cycli­ the short run by raising rates paid for new cal vulnerability of housing in the future, a and existing savings. more detailed review—illustrating how both Typically in the postwar period, the rela­ the traditional and the special peculiarities tive share of depositary-type savings in total of residential finance complicated the pic­ savings flows has declined during phases of ture in 1966—will help to highlight the strong economic growth and high and rising need for reform. FACTORS AFFECTING THE AVAILABILITY AND PRICE OF RESIDENTIAL MORTGAGE CREDIT IN 1966 Last year’s combination of intense gen­ mortgage debt during the second half of the eral credit demands and greater than usual year was down by two-fifths from the record emphasis on monetary restraint in lieu of pace in the second half of 1965. New com­ stronger fiscal policy affected the availability mitments for mortgage loans probably fell of credit in residential mortgage markets by somewhat more. For the year as a whole, more than in most other types of credit mar­ net extensions of residential mortgage credit kets. Net growth in outstanding residential declined by $6.5 billion, or by three-tenths. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN • MAY 1967 Nonbank thrift institutions. As has been indi­ shares and deposits. After midyear most cated, the bulk of the reduction in mortgage large savings banks and some savings and credit reflected the marked decline in net loan associations in West Coast States raised savings flows to the nonbank depositary-type their savings rates to a point where their net institutions that specialize in mortgage lend­ inflows began to improve. After late Sep­ ing. Net acquisitions of deposits at mutual tember, once the new ceiling rates on share savings banks dropped to the lowest level in accounts had been established and modifica­ 5 years, and net acquisitions of shares at tions had been made in previous regulations savings and loan associations fell to the low­ on Federal home loan bank advances, other est level in 13 years. Funds available for savings and loan associations that were be­ expansion of their residential mortgage low the ceiling also raised their rates. portfolios were curtailed accordingly. By the fourth quarter market rates of in­ The reduced inflow to these thrift institu­ terest had reached a peak and had begun to tions reflected in part high and rising yields decline. Accordingly, growth of savings and on competitive market instruments, as noted loan association share capital picked up, and earlier, and continued aggressive competi­ growth in deposits at mutual savings banks tion of commercial banks for savings. It improved further. also reflected a general reluctance or inabil­ The reduction in net savings received by ity of these thrift institutions to increase the thrift institutions last year was compounded rates paid on their own deposits or shares, at by a drop in cash inflows resulting from pre­ least through midyear, because their earning payments on outstanding mortgage loans. assets consisted chiefly of long-term mort­ Return flows from such prepayments fell gages bearing yields that had largely been off sharply as the reduced volume of new fixed earlier when mortgage rates were gen­ lending slowed turnover in older properties erally appreciably lower. Also, savings and and as more buyers were obliged to assume loan associations during much of 1966 were outstanding loans in order to finance real inhibited from raising rates on share ac­ estate transactions. For savings and loan counts by regulatory restrictions on ad­ associations—the dominant mortgage lender vances from the Federal home loan banks. —loan retirements (as measured by new These constraints were part of a continuing loans made minus changes in loans held) policy intended to achieve a sounder basis were down $2.1 billion over the record level for growth than had taken place at some of the preceding year, with most of the savings and loan associations earlier in the decline taking place in the second half of 1960’s, when they had promoted high divi­ 1966. Cash flows from both loan retirements dend rates and had greatly increased bor­ and net growth in share capital declined by rowings from the Federal home loan banks. nearly $5.8 billion. Over the first half of 1966, savers found The relatively limited degree of liquidity a growing incentive to shift funds out of the at the thrift institutions further restricted thrift institutions that offered lower yields their ability to meet demands for residen­ on fixed-value claims. In that period, sav­ tial mortgage credit in 1966. During the ings accounts then in effect generally per­ early 1960’s when credit conditions were mitted savings withdrawals to be made virtu­ easier, the liquidity of these lenders had ally on demand. The resulting large outflows been built up more slowly than their total reduced sharply the net growth in savings resources. By the end of 1965—just before Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 733 entering a period that would test their banks was short term, virtually all their out­ liquidity severely—savings and loan associa­ standing debt had to be refinanced each tions reported that their holdings of cash year. This practice limited the degree to plus U.S. Government securities of all matu­ which those banks could provide new money rities accounted for the smallest share of for additional advances later when general their total assets (8.7 per cent) in 24 years. conditions tightened. As it was, the home The average liquidity of mutual savings loan banks went to the money market in banks was the lowest in several decades. 1966 for $7.2 billion in order to refinance Ratios of reserves to total liabilities for both outstanding obligations and to raise $1.6 savings and loan associations and mutual billion in new money. The higher interest savings banks were also comparatively low. rates payable on these obligations were Also, the easier credit conditions of the passed on to all borrowing member associa­ early 1960’s, coupled with the elimination tions in higher costs of operation, since rates of earlier housing shortages dating from on outstanding advances were changed in World War II, had left some savings and line with rates on new advances. loan associations with a large volume of Faced with the need to roll over most out­ troubled or foreclosed real estate on their standing debt and to raise some new funds in hands. While the origination of these loans an already congested market, the Federal may have initially added high-yielding assets Home Loan Bank Board felt constrained to to their mortgage portfolios, the subsequent husband the lending power of the Federal acquisition of the collateral through fore­ home loan banks in order to cover with­ closure (or the equivalent) later depressed drawals of share capital at member associa­ net earnings by increasing servicing costs. tions. For this reason, advances for pur­ It also reduced cash flows scheduled from poses of expanding mortgage credit were principal and interest payments and reduced discontinued after early spring. Member holdings of potentially salable loan collat­ associations after midyear were required to eral. By the end of 1965, savings and loan draw down their own liquid assets to some associations probably owned in excess of extent before borrowing from the System $1 billion in real estate other than associa­ to cover withdrawals. Both changes, of tion premises, compared with about $290 course, restricted the degree to which sav­ million 4 years earlier, thus further con­ ings and loan associations could extend ad­ stricting their investment flexibility. ditional mortgage credit at a time when their Finally, member savings and loan as­ own internal resources were under pressure. sociations borrowed heavily from the Fed­ All these combined factors resulted in a eral home loan banks during the early sharp slowdown in net acquisitions of resi­ 1960’s, mainly to finance additional expan­ dential mortgages during 1966 by savings sion of their portfolios during a period of and loan associations and by mutual sav­ rapid though decelerating growth in their ings banks. Net residential mortgage takings net savings inflows and net mortgage ac­ of savings and loan associations dropped quisitions. By the end of 1965, home loan some $5.0 billion, or by more than half, be­ bank advances outstanding were nearly $6 low the already reduced 1965 figure. Net billion, more than double the figure only 4 takings by mutual savings banks declined years earlier. Since nearly all the open mar­ by nearly $1.4 billion, or by a third, below ket borrowing of the Federal home loan the near-record total a year earlier. Taken Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN ■ MAY 1967 together, the reduced pace of lending of represented transfers from passbook savings, these two lender groups accounted for the and some came from nonbank depositary bulk of the $7.6 billion net decline in resi­ institutions. But commercial banks also suf­ dential mortgage debt extended by the four fered from the aggregate shift in savings to­ major types of private institutional lenders, ward direct investment in market securities. including commercial banks and life insur­ Thus, even though bank time and savings ance companies in addition to savings and deposits rose at an annual rate of 10 per loan associations and mutual savings banks cent during the first half of 1966, this rate (see table). was a third below the pace of expansion during the record preceding year. Commercial banks. While commercial banks After mid-1966, banks found it increas­ experienced a modest slowing of savings ingly difficult to add to their time and savings growth during the first half of 1966, the deposits, in view of rising market yields on composition of their inflows changed competitive investments, the unchanged ceil­ sharply toward higher-cost funds, as in the ing on time deposits of $100,000 and over, case of other depositary institutions. As and the reduction in ceiling rates on time banks began to compete more actively for deposits of less than $100,000, made in time deposits of individuals and businesses, September. In fact, total time and savings many promoted new instruments, such as deposits of commercial banks remained al­ savings certificates and savings bonds, with most unchanged on a seasonally adjusted higher yields and longer maturities than basis from the end of August through No­ regular passbook accounts. Part of the funds vember, but improved in December as gen­ flowing into these time deposits merely eral credit conditions eased again. INCREASES IN NONFARM RESIDENTIAL MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER AND TYPE OF PROPERTY (Billions of dollars, without seasonal adjustment) 1965 1966 1964 1965 1966 I II III IV I II III IV Total.......................................... 21.3 21.5 15.1 4.4 5.7 5.9 5.6 4.2 4.6 3.4 2.8 Type of holder: Financial institutions—Total. 18.5 18.5 10.9 3.8 5.0 5.1 4.6 3.3 3.5 2.3 1.8 Commercial banks.............. 2.5 3.5 2.7 .5 1.0 1.2 .8 .4 1.0 .8 .5 Savings banks...................... 3.8 3.6 2.2 .9 .9 .9 .9 .6 .4 .6 .6 Savings and loan assns........ 9.3 8.7 3.7 1.8 2.6 2.4 2.0 1.6 1.6 .4 .1 Life insurance companies... 2.9 2.7 2.2 .7 .5 .6 .9 .7 .5 .5 .6 Federal agencies...................... -.2 .4 2.8 * -.1 .1 .4 1.0 .6 .6 .6 All others.................................. 3.2 2.7 1.4 .6 .9 .7 .6 -.1 .5 .5 .5 Type of property: 1- to 4-family............................ 15.4 16.1 11.6 3.1 4.4 4.4 4.1 3.1 3.7 2.7 2.0 Multifamily.............................. 6.1 5.4 3.6 1.2 1.3 1.4 1.4 1.1 .9 .8 .8 * Less than $50 million. Source.—Board of Governors of the Federal Reserve System, new series. Details may not add to totals because of rounding, which also affects comparisons between quarters and years. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 735 Commercial banks allocated a larger January, that confined its secondary-market share of their net increase in loans and in­ purchases to newly made mortgages in order vestments to residential mortgages in 1966 to conserve its resources within statutory than in any of the previous 5 years. But limits. their net takings of residential mortgages (including construction loans) were re­ FNMA activity. A record net increase in duced sharply in the second half of 1966, FNMA acquisitions of unseasoned residen­ after holding close to their year-earlier pace tial mortgages during 1966 helped to offset during the first 6 months. For the year as a in part the large aggregate decline in tak­ whole the net decline in bank acquisitions ings by the four major types of private finan­ of residential mortgages came to about $700 cial institutions. FNMA added $2.3 billion million, a fifth below the record 1965 level. to its residential mortgage portfolio, chiefly through purchases from mortgage compa­ Life insurance companies. As general credit nies. conditions tightened during most of 1966 Not all this total, however, represented a and interest rates rose, life insurance com­ net addition to the over-all availability of panies came under increasing pressure from residential mortgage credit. Some funds growth in policy loans, which upset earlier raised by FNMA through its borrowings projections of cash flows available for in­ from the Treasury or through the open mar­ vestment. Slowing in mortgage prepayments ket undoubtedly attracted savings that further contributed to a reduction in cash might otherwise have been placed with flows. This led life insurance companies to depositary institutions that also invest in reduce their net acquisitions of residential mortgages. Also, some mortgages purchased loans by about $400 million, or by a sixth, by FNMA provided funds that mortgage although their net takings of higher-yielding sellers reinvested elsewhere than in the nonresidential mortgages increased by about mortgage market. Even so, FNMA’s net as much as their residential acquisitions support to the residential mortgage market declined. was probably quite large, although its in­ For insurance companies as well as for creased volume of open market borrowings depositary lenders, a potential source of helped to raise general market rates, which loanable funds through the sale of existing encouraged the shift in savings from direct seasoned mortgages was severely limited in lending institutions. 1966, despite the variable impact of tighter credit conditions both geographically and in New commitments on residential mortgages. terms of timing. In part, this limitation re­ The nature of the process of financing resi­ flected the fact that no effective secondary dential properties usually requires a mort­ market mechanism exists for the ready trans­ gage commitment by the lender in advance fer of seasoned residential mortgages, es­ of the actual disbursement of funds. This pecially conventional loans, at going prices. practice means that cutbacks in new com­ The sale of seasoned, Federally underwrit­ mitments that have an immediate impact on ten home loans to the Federal National plans for the construction of new houses or Mortgage Association was ruled out, of the transfer of used homes may show up course, by FNMA regulations, issued in mid­ only after some time has passed in a reduced Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN • MAY 1967 pace of new loans closed and funds dis­ eased and interest rates in nonmortgage sec­ bursed. They may be evidenced even later in tors declined. Since rates on savings at declines in net acquisitions of mortgages, if depositary institutions remained at or close loan repayments also fall off. to the record levels reached earlier, the Fragmentary evidence suggests that new pressures that produced large net savings commitments on residential mortgages were outflows during much of 1966 began to cut back even more sharply than net loan work in reverse to generate large savings acquisitions for all major types of private inflows toward the end of the year. Rate lenders. Lenders were obliged to cut back ceilings imposed under new legislative au­ heavily on new commitments in order to thority worked to direct a larger share of the honor outstanding commitments that bulked total toward nonbank thrift institutions. increasingly large in view of reduced cash Not all these net savings inflows, how­ flows below earlier projections. Such projec­ ever, were translated at once into a sharply tions, in turn, had been based on extrapola­ higher volume of new residential mortgage tions of favorable cash-flow trends earlier in commitments at this usually slack season the 196O’s. They led many lenders by the in the real estate market. Many lenders first end of 1965 to commit themselves farther went about rebuilding their depleted liquid­ ahead than they had done at any time in the ity positions and reducing their indebted­ recent past. ness. Many potential borrowers held back Greater lender selectivity—along with in expectation of still further easing. Others higher construction costs and housing prices were not immediately aware that mortgage —apparently worked to increase the average credit had become more readily available amount of mortgage credit used per loan at lower costs. Or they were not yet in a commitment last year, continuing a long position to seek out new commitments. trend in this direction. Thus the number of new residential mortgage commitments was The cost of credit. The cost of new home probably cut back by even more than the mortgage loans rose sharply in late 1965 dollar volume of funds committed for addi­ and through most of 1966, as did rates on tional lending. This factor further con­ all other types of market instruments. Yields strained the number of new housing starts on newly made, multifamily mortgages ap­ and the number of sales of used dwellings. parently increased rapidly, too. Toward the Builders of new homes as well as buyers end of last year, home mortgage rates of new and used homes were hit by these peaked and then began to decline at a pace cutbacks in new commitments, since both that accelerated in the early months of largely depend on the same credit sources 1967. In both their up and down phases, and instruments. Production of new housing returns on home mortgages appear to have and transfers of used homes declined sharply changed more rapidly than in any earlier after the early part of 1966. Other influences postwar period when they gained a reputa­ also contributed to a minor extent to the tion for stickiness. Their greater sensitivity decline in starts; these included the after­ last year seems to have reflected largely the math of earlier overbuilding in some areas unusual degree of tightness that developed and the dampening effects on demand of in the availability of funds for such loans. continuing increases in costs of land, ma­ Tn some eastern States where going yields terials, and wages. on residential mortgages rose above usury By late fall, general credit conditions ceilings, lending within local markets was Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 737 said to have been cut back more than might lished by the FHA. Indirectly, the large otherwise have been the case. And in regions discounts inhibited demand for new houses, where interest rates on mortgages had risen since the resale market for used homes most, discounts on Federally underwritten provides strong support for the new-house loans with fixed contract rates had increased market. dramatically, despite several upward ad­ Some potential borrowers—faced with a justments, before finally reaching the statu­ sharp cutback in the supply of new residen­ tory ceiling of 6 per cent. Discounts on tial mortgage commitments and the unwill­ FHA-insured and VA-guaranteed home ingness of many would-be sellers to absorb mortgages—which are largely borne initially large discounts on Federally underwritten by new-home builders and used-home sell­ loans—turned to less usual financing prac­ ers—reached levels that discouraged offer­ tices in order to consummate transactions. ings of new or used houses even where fi­ Assumed loans, purchase money mortgages, nancing commitments were available at the and instalment land contracts were said to advanced yields then prevailing. Even 6 have been often involved. So too were junior per cent FHA home loans carried secondary­ loans carrying negotiated rates that may market discounts averaging as many as 7.3 reflect the inferior bargaining position of percentage points in the Southwest last the borrower and the inferior legal position November, according to the series pub­ of the creditor in foreclosure. SUGGESTED APPROACHES TO REFORM Corrective actions designed to lessen other sectors to sharp cyclical changes in cyclical fluctuations in the availability and credit availability and credit costs. price of residential mortgage funds need to The reports of the Presidential Com­ be addressed to the special structural prob­ mittees on Federal Credit Programs and on lems of the mortgage market that were high­ Financial Institutions, made in 1963, in­ lighted by the 1966 experience. The preced­ cluded numerous proposals for reform; the ing review of that experience suggests many Board of Governors continues to endorse of the changes that might be considered. the general principles set forth in those two Among these are the restructuring of non­ reports. Some time earlier, in 1961, the bank depositary institutions that specialize Board submitted a requested report to the in mortgage lending, improvements in the Senate Banking and Currency Subcom­ marketability of the mortgage instrument, mittee on Housing that contained several reductions in barriers to the free flow of observations about how instability in resi­ mortgage funds among geographic regions dential construction might be lessened in and among types of structures, and changes the future. in the policies and powers of Federal agen­ In recommending what should be consid­ cies that specialize in mortgage and housing ered now, the Board of Governors believes markets. Such reforms would help to lessen that the following broad guidelines are of the impact of credit restraint on the residen­ crucial importance; tial mortgage market. But even if all these —A flexible fiscal policy should play a changes were made, the residential mort­ greater part than it did in 1966 in acting, gage market and housing would undoubtedly when needed, to restrain aggregate eco­ still prove to be more sensitive than most nomic activity. Timely reductions in in- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN • MAY 1967 come tax rates earlier in the 1960’s con­ that develop when general credit conditions tributed greatly to the sustained economic tighten. growth that developed after the 1960-61 recession. If, with the added economic First, encourage the thrift institutions to stimulus provided by escalation of the issue a greater variety of longer-term liabili­ Vietnamese war, an income-tax increase ties, including savings certificates and other had been enacted early in 1966, the bur­ instruments designed to retain rate-con­ den of restraining general economic ac­ scious funds for a considerable period of tivity would have fallen less heavily on time. Greater use of longer-term savings monetary policy and hence less severely instruments would provide a better balance on the residential mortgage market and on against the maturity structure of the assets housing. of these institutions. It would help to limit —The residential mortgage market— the extreme volatility of savings flows such both primary and secondary—should be as those that developed in 1966. This ap­ integrated closely with the general capital proach would also have the advantage of market, not insulated from it. But at the permitting payment of higher returns mar­ same time, certain institutional changes should be made to enhance the ability of ginally to longer-term accounts without in­ the residential mortgage market to com­ creasing the yield to every depositor or share­ pete prudently for the limited aggregate holder. supply of available credit. It should be Second, establish flexible secondary-re­ recognized that the result would involve serve requirements for nonbank thrift in­ payment of higher rates at certain times stitutions. These reserve requirements should for savings funds and for mortgage credit. be implemented so as to encourage a cushion —-If special public measures appear of funds to be built up in appropriate periods warranted to ease the impact of tightening of sustained general credit ease that could general credit conditions on the avail­ become available later when credit tightened. ability or price of residential mortgage Reserve requirements would also provide a credit, such actions should be taken with­ margin of relief against excessive reliance out sacrificing the objectives of monetary on advances from the Federal home loan restraint. Moreover, the extent of the subsidy element involved should be re­ banks as a supplementary means of expand­ vealed clearly, and the substitution of ing credit under conditions of monetary public for private credit should be mini­ restraint. Experience during 1966 suggested mized. that even the resources of the home loan banks can become particularly limited when Specifically, the Board of Governors sug­ general capital markets become congested. gests, without necessarily endorsing them at Finally, such reserve requirements would this time, that the feasibility of the follow­ tend to maintain loan quality by discourag­ ing proposals be considered as a means of ing excessive mortgage lending in easypromoting greater cyclical stability in the money periods. Excessive expansion of mort­ flow of new commitments for residential gage credit in one period can lead subse­ mortgages and in their direct and indirect quently to a large, accumulated volume of costs: illiquid foreclosed real estate. (1) Improve the liquidity of thrift institu­ Third, study the question of whether an tions so as to withstand better the pressures increase in the investment options available Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND RESIDENTIAL MORTGAGE MARKET 739 to nonbank depositary institutions specializ­ (2) Improve the marketability of resi­ ing in mortgage investment would enhance dential mortgages so as to make them more their mortgage lending potential at times attractive and to permit lenders to adjust when general interest rate levels are rising. their portfolio positions more readily to con­ An important aspect to be considered is the ditions of general credit restraint. extent to which broader investment powers First, provide greater flexibility in setting might facilitate greater flexibility in portfolio maximum contract interest rates on FHAearning power and liquidity. Improved insured and VA-guaranteed mortgages, if flexibility in earnings might permit lenders to not eliminate these ceilings entirely. Author­ limit savings outflows during periods of gen­ ity should at least be provided to set rates eral credit tightness by making more rapid so as to keep discounts on new loans within upward adjustments in their rates payable reasonable amounts at all times, subject only on new and existing savings accounts. Im­ to the limits of State usury laws. If substan­ proved liquidity might permit the liquida­ tial discounts such as those that developed tion of short-term assets to provide addi­ during 1966 could be avoided in the primary tional funds for relending. Both, in turn, market, lenders would be more prone to could allow these lenders to maintain a invest in Federally underwritten loans when more stable flow of new mortgage commit­ credit conditions tightened rather than in ments at such times. conventional mortgages or in other types of A related subject to be studied in this assets. Home sellers would be more willing connection is the Federal chartering of mu­ to offer their dwellings on the market if tual savings banks and the broadening of there were no need to absorb substantial their lending powers. Consideration of this discounts, as in 1966, and home buyers subject would, of course, require attention would be obliged to resort less often to to ways in which institutions set up as Fed­ costlier methods of financing. eral savings banks-—or converted to them— Second, explore through the FNMA the can bear in an appropriate manner the types feasibility of setting up a trading desk so as of burdens applicable to commercial banks to act as a dealer in residential mortgages. insofar as reserve-type requirements and In this capacity FNMA would try to main­ taxation are concerned. tain a continuous market on both the buying Fourth, increase the statutory and finan­ and the selling side. If a trading desk opera­ cial capacity of the Federal Home Loan Bank System to assist its members, by pro­ tion should ultimately prove to be work­ viding the home loan banks with greater able, it would help, among other things, to flexibility to change rates on advances with­ keep in daily, if not hourly, touch with mar­ out relating them directly to the current ket prices and yields, thereby facilitating cost of funds. Administrative consideration the administration of flexible ceiling rates might also be given to achieving a better- on new FHA and VA mortgages as well balanced debt structure of the home loan as providing a source of needed information banks—thereby lessening the need to re­ for all mortgage brokers and investors. A finance outstanding indebtedness during pe­ more viable secondary market in general riods of credit tightness, as was required would help to facilitate portfolio adjust­ in 1966. ments that were difficult, at best, to arrange Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN • MAY 1967 during 1966 in the absence of such a cen­ primary and secondary mortgage investment tralized exchange. during 1966. Third, study through the FHA the possi­ Among the two most important measures bility of enhancing the marketability of to examine are the possibility of modifying, FHA-insured mortgages so that they would if not eliminating, geographical and typetrade more like corporate and municipal of-structure restrictions on mortgage lending securities or Treasury obligations. In part, by Federal- and State-chartered depositary this step could involve reducing further, institutions, and the achievement of closer if not eliminating altogether, the residual uniformity in maximum statutory or regula­ non-insured risks now attached to Feder­ tory loan-to-value ratios and loan maturities ally underwritten mortgages, insofar as among different types of lenders. ultimate holders other than originators (4) Broaden sources of funds available are concerned. for residential mortgage investment, thereby (3) Improve the allocation of residential relying less on depositary institutions that mortgage funds so as to assure a more tend to be vulnerable to conditions accom­ efficient distribution of credit during periods panying general credit restraint. of general credit restraint. Encourage more sales of participation Reexamine geographical and other bar­ certificates or other instruments against riers to mortgage investment so that appro­ pools of residential mortgages, subject to appropriate safeguards. Additional efforts in priate steps can be taken to make them more this direction, by Federal agencies or by nearly comparable or to do away with them large private lenders, should help to attract altogether. This approach, subject to appro­ savings from such investors as pension funds priate safeguards of loan quality, would in­ or trusts that are reluctant to purchase and volve a review of the mortgage investment service individual mortgages outright and powers and origination practices of financial prefer to invest large blocks of funds in institutions. It would also involve a con­ instruments payable only at maturity. Small sideration of what the Federal Government investors, too, could be attracted to certifi­ could do positively to encourage the States cates that substitute the superior credit of to bring their mortgage and foreclosure the issuer for that of the mortgage borrower, codes as close as possible to uniformity and and provide for investment in minimum to adopt more realistic usury statutes, where amounts well below the $15,000-plus av­ appropriate. All these differential institu­ erage now required for a single, newly made tional restrictions worked to inhibit both first mortgage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statement to Congress The Board of Governors appreciates this among both competing seller and competing opportunity to present its views on S. 5, the services—so that he may use his purchasing Truth in Lending Act. We believe that im­ power in what to him is the most desirable portant social as well as economic benefits way. The objective of S. 5, with which the may be expected to flow from a more effec­ Board is in full agreement, is to see that such tive disclosure of credit costs to consumers. information is provided with respect to the You have said, Mr. Chairman, that the use of credit. It does not purport to impose purpose of the bill is to bring about “full dis­ rate ceilings or any other restraints on terms closure of the cost of credit so that the con­ and conditions, but only to assure full dis­ sumer can make an intelligent choice in the closure of the price charged for credit. market place.” The Board agrees that as rea­ Prices of goods and services are usually sonable and workable ways are found to ac­ stated in money terms (a point made fre­ complish this objective the market system quently during these hearings) but a mean­ will function more efficiently. In the field of ingful price comparison requires also some consumer credit existing trade practices gen­ knowledge about the service to be acquired; erally fall short of the kind of disclosure that namely, quantity and, where applicable, facilitates meaningful comparison shopping. quality and duration of use. When the serv­ We also agree with the principle stated in ice to be acquired is the use of consumer section 2 of the bill that competition would credit, quantity and duration of use are the be strengthened by a more informed use of important variables. Duration of use is the consumer credit. period for which the credit is extended, of The price system is a fundamental attri­ course, and quantity is the amount of credit bute of a free-enterprise, competitive econ­ used on average over this period. It is cus­ omy. The sale of goods and services in ex­ tomary in finance to standardize the time­ change for money is the method by which period variable by stating price in terms of the vast majority of transactions are con­ charge per year, and the quantity variable summated, and permits a degree of special­ by stating price per hundred dollars. ization—with its resulting efficiencies—that otherwise would be impossible. And for this DISCLOSURE OF ANNUAL PERCENTAGE RATE system to function most effectively, it is Now it would be possible to meet this price necessary that the prices at which goods and specification standard by stating the price of services are available be stated by the seller, credit as dollars and cents per hundred dol­ and known to the buyer, in standardized, lars borrowed on average per year. But this meaningful terms. It is in this way that the is a complex form of statement, and it buyer can be informed of his options— produces exactly the same result as the use Note.—Statement of J. L. Robertson, Vice Chair­ of a percentage rate. That is, on a 1-year man, Board of Governors of the Federal Reserve Sys­ tem, before the Subcommittee on Financial Institutions loan of $1,000, payable in equal monthly of the Senate Banking and Currency Committee, on S. 5, May 10, 1967. instalments and carrying a charge of $60 741 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN • MAY 1967 (a so-called 6 per cent add-on loan), the terest, and second to the outstanding—and charge per annum on the average amount gradually declining—credit balance. of loan available to the borrower may be The Board also agrees that the rate of stated at the standardized rate of either finance charge need be specified only within $ 10.90 per hundred dollars or 10.9 per cent. “reasonable tolerances,” as provided in the The important point here is that the bor­ bill. But we believe that Congress should rower has available for use, over the life of decide, at least in the first instance, what the loan, not $1,000 but an average of constitutes a reasonable tolerance. We there­ $541.90, because each monthly payment in­ fore recommend a statutory provision per­ cludes repayment of principal as well as in­ mitting the rounding of the annual percent­ terest. The Board believes that to state the age rate to the nearest whole per cent. This standardized charge as applying to anything is a small deviation—viewed in terms of the other than the average amount of credit usual levels of consumer finance charges— available to the borrower would distort the and it would make possible the use of stand­ true relationship between cost and benefit ard tables in finding the rate to be disclosed received. The Board is also convinced that in the vast majority of credit transactions. it is preferable to state the charge in per­ We also recommend, however, that authority centage rather than dollar terms, and on an be granted to provide wider tolerances if annual basis rather than for some other experience indicates that this would ma­ period. This would facilitate comparison terially simplify the problem of disclosure with other financial prices, such as the per­ in difficult cases. centage charge on single-payment loans, the interest rate paid on savings accounts, and IRREGULAR PAYMENTS the yield available to investors on Govern­ The Board is inclined to believe that the ment bonds and other securities. Thus, we problem of irregular payments, by and are in basic agreement with the provisions large, is capable of practical solution. In the of S. 5 in these respects. first place, permitting rounding to the near­ We also agree that the charge should be est whole per cent in the rate disclosure will calculated on an actuarial rather than a con­ take care of most of the credit contracts that stant-ratio or other basis. Again, it is the contain minor irregularities. And contracts question of accuracy—disclosure of the calling for the deferment of payments or a truth—that leads us to favor this approach. final larger “balloon” payment appear to On a 5-year, 6 per cent “add-on” monthly lend themselves to use of special tables or reduction loan (not uncommon in the home relatively simple adjustment calculations. modernization field), the true charge per For the remaining cases—we hope they annum is 10.85 per cent while the calcula­ are relatively few—the calculation problem tion on a constant ratio basis would produce could be a good deal more difficult. Where a rate of 11.80 per cent—nearly 1 point a lender does an appreciable amount of higher. The reason for the difference is that business involving a fairly common irregu­ the constant ratio method assumes that the larity, such as skipping summer payments proportion of each payment applied to in­ for school teachers or patterning payments terest is the same. In the actuarial method, to the seasonal cash receipts of farmers, the monthly payment is applied first to in­ special rate tables can no doubt be designed. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 743 But for highly personalized contracts involv­ requiring such terms to be disclosed at the ing, say, a deferred payment schedule, a time he opens a revolving credit account. number of skips, irregular payment The disclosure required should include the amounts, and a balloon payment at the end, duration of any free period allowed, the the lender would seem to have no recourse method of computing the balance against except to compute the rate of finance charge which the charge is imposed, the periodic by hand, a process which could be quite dif­ rate and the annual percentage equivalent, ficult. Although rate calculation for such and the minimum and special charges (if contracts is technically possible, many any). It would be entirely appropriate for lenders certainly would resist writing them. a store to give new customers a little leaflet, Thus, it seems to us inescapable that some such as the one you have seen that was tendency towards use of standardized printed by the National Shawmut Bank of finance terms must be anticipated, and that Boston, explaining the advantages of that this should be taken into account in the store’s credit plan over alternative plans. committee’s consideration of the bill. In addition to the original complete statement of terms and conditions, a brief REVOLVING OPEN-END CREDIT disclosure of the essentials should be in­ Among the difficult problems brought out cluded in the monthly bill. For example, the in these hearings are those involved in the following information might be printed at disclosure of finance charges on revolving the bottom of each monthly statement: or open-end credit. First, it has been argued No finance charge is made for the period from that the annual rate that the customer will purchase until billing date, nor is any finance charge made for 30 days thereafter if the account is paid in pay cannot be calculated in advance, be­ full within that period. cause the time that will elapse from date of If payment in full is not received within 30 days of billing date, a charge will be made of 1!6 per cent of purchase to date of repayment is not known the opening balance of this bill. in advance. Second, more than one method A charge of IVi per cent per month is equivalent to is commonly used for computing the base to a rate of 18 per cent per year. which the finance rate will be applied. Third, The first sentence points out that the some plans call for annual fees, minimum lender provides a “free period,” during charges, etc., which cannot be converted into which no finance charge is imposed. The an annual percentage rate. These variations second sentence explains the charge that will complicate the comparison of finance rates be imposed if the free period is exceeded. charged by different establishments, as well You will note that this second sentence is as those charged for different types of credit. quite similar to those now used by many Yet the need remains: Users of revolving stores not subject to special disclosure laws, credit—like the users of any other form of except that it adds a statement of the base consumer credit—should understand the to which the finance charge is applied. In a credit costs that they will pay. store using an adjusted balance method, In view of these problems, how can the this sentence would be expanded to add, for revolving credit customer have a clear example, the words “less any payments or awareness of the terms under which he buys merchandise returns”—underlined if the or borrows? We believe this can be largely store wishes. The third sentence points out accomplished—although not entirely—by to the user the annual equivalent of the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

744 FEDERAL RESERVE BULLETIN • MAY 1967 stated monthly rate. If there are any mini­ the specified categories cover matters that it mum or special charges, these would be would seem unnecessary or impractical to noted in a fourth sentence. cover under a credit-cost disclosure bill. This Each of these sentences would disclose would seem true particularly of the definition necessary information. Taken together, we of “credit” to include “any contract or ar­ believe they would give the credit user a rangement for the hire, bailment, or leasing picture that is fair to the store, informative of property.” As to such transactions, it to the customer, useful in comparing charges would seem impossible to attribute or deter­ from store to store, and broadly comparable mine a “finance charge.” Similar questions to other rates charged for credit or paid on can be raised as to inclusion in the definition savings. of such things as options, demands, liens, Before turning to our other recommenda­ and pledges. tions, we should like to emphasize again We believe it would be preferable to de­ what all members of this committee fully fine credit as “the right granted by a creditor recognize—namely, that this bill is not a to a debtor to defer payment of debt or to cure-all for the myriad abuses practiced by incur debt and defer its payment,” followed some in the lending of money or sale of by an enumeration of some of the important merchandise on credit. Thus, S. 5 will not types of credit listed in section 3(2) of the (and it would seem impossible to make it) present bill. The quoted definition—which cover the merchant who sells only on a has been proposed in connection with the time-price basis or who marks up the prices Uniform Consumer Credit Code now being of his goods to compensate for a lower drafted by the National Conference of Com­ finance charge; it will have very little influ­ missioners on Uniform State Laws—is suffi­ ence on cash lenders who advance small ciently broad to cover any situation within amounts at very high rates; it will provide what we conceive to be the purpose and in­ little assistance to the consumer who pays tent of S. 5. It would eliminate any concern no attention to what he signs or to the im­ as to categories of transactions whose inclu­ pact of the commitments he makes on his sion in the present definition might seem to future financial condition. What the bill can be questionable. accomplish is the disclosure, in the bulk of transactions, of the amount and rate of EXEMPTION OF SMALL CREDITS AND finance charge on which credit may be ob­ CHARGES tained. It is only one step—though an I am sure that none of us wants to press dis­ essential one—in the process of consumer closure of credit costs to the point where education and the increased awareness that borrowers are denied access to credit at any is required. price. But there is one area where disclosure of an annual percentage rate might do just DEFINITION OF CREDIT that. In a closed-end credit transaction in­ Section 3(2) incorporates a definition of volving a small amount, a high effective rate “credit” that was originally developed or de­ may be justified to compensate the creditor signed for a different purpose, the selective for the relatively high out-of-pocket costs of regulation of downpayments and maturities handling the transaction. However, he may for credit in emergency situations. Some of be understandably reluctant to disclose the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 745 very high rate—perhaps 50 or 100 per cent to reflect costs incidental to the extension —and might decide instead simply to dis­ of credit would involve particularly trouble­ continue this type of credit transaction. some questions in first mortgage lending For some borrowers, unable to obtain because of the number and variety of the open-end credit accommodation or not hav­ costs assessed at closing, many of which ing access to small cash loans, the need to would be incurred, in whole or in part, by make relatively small purchases on credit a prudent cash buyer where no credit was may be great indeed. It may also be argued extended. Second, while it would be possible that a small finance charge—in dollar to spread discounts and other credit-related amount—is not of great significance to the costs over the life of the contract as a part credit user regardless of the effective rate of the annual rate of finance charge, we feel of finance charge. Therefore, we would be that this might tend to mislead the borrower. disposed to see closed-end credit transac­ Such charges are in the nature of “sunk tions involving a small amount—perhaps cost” and are borne in full by the borrower under $100—and a small total finance whether the loan is repaid in 1 year or 30. charge—perhaps under $10—exempted Third, to require disclosure of total dollar from the disclosure requirements. But we finance charge, including interest payable think Congress should make the decision over the whole life of the contract, might be and, if it agrees, should incorporate the spe­ more misleading than helpful. As has been cific exemption in S. 5. pointed out in these hearings, the present value of a dollar of interest to be paid 20 EXEMPTION OF FIRST MORTGAGE LOANS to 30 years hence is substantially less than The Board recommends that the bill be one dollar, and relatively few first mortgage amended to exclude first mortgage real­ contracts appear to be carried all the way to maturity. estate loans, on the ground that there is al­ ready reasonable disclosure in this field. The The Board does believe, however, that first mortgage contract usually specifies the second mortgage loans and similar transac­ interest charge in terms of annual percentage tions should be retained within the scope of rate on the outstanding balance, and full de­ S. 5. Such credits typically are extended for tails of one-time costs are customarily given, a much shorter term than first mortgages, in dollars and cents, at the time the loan is and discounts, fees, and charges can make closed. up a much larger proportion of total finance The typical first mortgage loan has an charges. Moreover, second mortgage credit original maturity of 20 to 30 years, as con­ is often obtained for purposes such as home trasted with much shorter maturities for modernization, durable goods purchases, consumer instalment credit. This fact, and and debt consolidation—consumer transac­ the fact that most first mortgage loans are tions of the type usually financed with con­ repaid well in advance of the original matu­ sumer instalment credit. rity, lead us to conclude that disclosure re­ BUSINESS CREDIT EXEMPTION quirements developed for relatively short­ term credit are inappropriate for first mort­ The Board recommends that the exemption gage loans. In the first place, to require that in section 8(1) of extensions of credit to the annual percentage rate be recomputed “business firms” be revised to exclude, in- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

746 FEDERAL RESERVE BULLETIN • MAY 1967 stead, credit extended to corporations and condition of, and covering the amount of, partnerships and all credits that exceed the credit contract. If such insurance is re­ $20,000. We agree that credit extended for quired, the borrower bears a cost which most business purposes should be excluded probably would not have been incurred if from the Act, but we are concerned about no credit were obtained. Moreover, exclu­ the difficulty of applying a purpose test for sion of insurance from the finance charge the many small businesses and farm opera­ creates a potential area of abuse, since some tions in which expenditures for household lenders may be encouraged to promote highand business purposes are closely associated cost insurance to compensate for a some­ and often intermingled. Such purchases as what lower finance charge. transportation and refrigeration equipment The fact remains, however, that any in­ (or miscellaneous purchases from mail­ surance provides a benefit to the borrower order concerns) often serve both household over and above the use of credit. To re­ and business uses, and such items are fre­ quire that the finance charge include insur­ quently purchased on the same instalment ance premiums would overstate the actual credit terms as strictly household goods. charge for credit. Therefore, we think that Furthermore, many small business and farm the cost of any kind of insurance is not prop­ operators need the protection of full disclo­ erly regarded as part of the finance charge, sure of credit costs as much as do purely and should be specifically excluded in S. 5. household consumers. Similarly, we feel that the statute should This reasoning leads us to suggest reword­ specifically exclude official fees and taxes ing the exemption along the lines I have from the “finance charge,” since generally mentioned. The disclosure provisions would they benefit neither creditor nor borrower, then apply to credit extended to most small are not within their control, and are the business and farm operators, but not to same regardless of the source and terms of larger businesses and agricultural opera­ the credit. Both types of charge should be tions. This would avoid unnecessary burdens required to be itemized among the non­ and reduce administrative problems, while finance charges that must be disclosed pur­ conforming to the objective of the bill in suant to section 4(a)(4). providing for full disclosure to those credit customers who need it most. Discretionary MAIL AND TELEPHONE SALES authority to increase the dollar limitation Under section 4(a) a seller on credit is re­ by regulation would also be desirable, since quired, prior to consummation of the sale, experience or changing conditions may in­ to furnish the customer “a clear statement dicate a need for a higher ceiling. in writing” setting forth specified informa­ tion. It seems to us that compliance with this EXCLUSION FROM “FINANCE CHARGE" section generally would not be feasible OF INSURANCE PREMIUMS, TAXES where a customer orders goods or services AND OFFICIAL FEES by mail or telephone. One of the issues that has proved trouble­ Appropriate allowance for this situation some during these hearings has been the might be patterned after the 1966 Massa­ question of how to treat insurance premiums chusetts statute (Chap. 255D, subsection F on policies taken out by borrowers as a of section 9). Thus, there might be added Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 747 to section 4(a) of S. 5 an exception for mail we think it should be spelled out in the bill. or telephone orders given without personal The Board recommends, therefore, that sec­ solicitation by a representative of the credi­ tion 6(b) be amended to exempt trans­ tor, if the cash and deferred payment prices actions that are determined to be “subject and the terms of financing are clearly set to State law that requires disclosure sub­ forth in the creditor’s catalog or other stantially similar” to that required under S. 5. ' printed material distributed to the public, and if the creditor delivers to the customer before the date for payment of the first EFFECTIVE DATE instalment on the purchase a written state­ Section 9 of the bill provides that the dis­ ment setting forth the information required closure requirements shall take effect 180 to be disclosed by section 4(a). days after enactment. This period may prove to be too short. Sufficient time should be EXEMPTION OF REGISTERED BROKER­ allowed to permit consultation, preparation DEALERS and publication of the regulations, and a Section 8(b) exempts “transactions in period during which those subject to the securities or commodities in accounts by a regulations may study their provisions, pro­ broker-dealer registered with” the SEC. We cure rate tables, and train their personnel in know of no reason for such an exemption, the new procedures. We urge you to amend and suggest that the committee consider section 9 so as to make the disclosure re­ whether it should be eliminated. quirements effective at a time to be pre­ scribed in the regulations, but in no event STATES WITH SUBSTANTIALLY SIMILAR later than 1 year from enactment of the law. LAWS We believe that section 6(b) of the bill IMPLEMENTING AGENCY should be modified. That section now pro­ Let me turn now to the question of what vides that the implementing agency shall agency should be designated to prescribe exempt from the Act any credit transactions regulations to implement this legislation. “which it determines are effectively regu­ The Board’s familiarity with the trade prac­ lated under the laws of any State so as to tices that would be subject to regulation require the disclosure by the creditor of the under this legislation is very limited. Its same information” as required under S. 5. regulatory responsibilities are principally We seriously doubt that a Federal agency confined to banks. We do collect consumer should be called upon to judge how effec­ credit statistics as a part of our responsibility tively State laws in this field are enforced, for monitoring flows of consumer credit particularly where, as in the case of S. 5, along with other kinds of credit. And we they are enforced in the courts. Action at have developed sources of data on current the State level should be encouraged, not trends in all financial markets so as to be discouraged, by enactment of S. 5, and it continuously informed of the flow and terms should be made clear that the States need of credit needs and uses by the economy as not follow precisely the provisions of this a whole. But this experience, helpful though bill. You have indicated during the hearings, it is in meeting our responsibilities in the Mr. Chairman, that this is your intent, but field of monetary policy, has not prepared Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN ■ MAY 1967 us for implementing with appropriate regu­ Trade Commission. A similar division of lations the type of legislation before you regulatory and enforcement responsibility today. Administration of a law such as S. 5 was made between the Board and the Securi­ is a function essentially different from the ties and Exchange Commission with respect functions that Congress heretofore has con­ to margin requirements for securities trans­ sidered appropriate for the Federal Reserve actions. We also hope that Congress will System. express its desire that all Federal agencies Formulating regulations under this bill endeavor to secure compliance with the law would involve the Board in time-consuming by lenders and sellers subject to their juris­ consideration of trade practices about which diction and transmit information indicating we have very little knowledge and would violations directly to the Department of thereby diminish the time we can devote to Justice or the Federal Trade Commission for the formulation of monetary policy—our investigation and appropriate action. principal responsibility. However, we believe the need for legisla­ ADMINISTRATIVE PROVISIONS tion of this kind is great. If the Congress Let me mention briefly a few amendments decides to designate the Board as the agency we recommend in the provisions of section to prescribe regulations to implement this 5, which relate to administration of the bill, we will do our best to carry out the Truth in Lending Act. assignment, but we hope that in time either Section 5 provides that the regulations the States will promulgate substantially prescribed by the implementing agency similar disclosure requirements, leading to “may contain such classifications and dif­ exemptions under section 6(b), or adminis­ ferentiations ... as in the judgment of the’’ tration of Federal disclosure requirements agency are necessary or proper. We recom­ will be reassigned to an agency better suited mend that after the word “differentiations” to perform the function. there be added, “may provide appropriate The task of implementing this proposed rules therefor,” to make it clear that any law will be complicated not only by our lack class of persons or transactions may be sub­ of knowledge in this field but also by the ject to special rules appropriate to that class. fact that the Board has no trained investi­ The last sentence of section 5(a) pro­ gative staff at its command to determine vides that, in prescribing any exceptions whether the Act and the regulations are under the bill, the implementing agency being complied with. Consequently, we “shall consider whether . . . compliance is would hope that our only function under being achieved under any other Act of this legislation would be to prescribe regula­ Congress.” To make it clear that the tions to implement it in a manner designed authority to make exceptions is not limited to cope with special situations and to pre­ to that situation, we recommend that after vent evasions. We are aware that it is the word “consider” the phrase, “among contemplated that the Act will be largely other things,” be inserted. self-enforcing, but we recommend that Section 5 provides that the implementing responsibility for enforcement and investiga­ agency “shall request the views of other tion of complaints be vested specifically in Federal agencies exercising regulatory the Department of Justice or the Federal functions with respect to creditors” sub- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 749 ject to the legislation. The Board assumes to whom the bill would apply in order to that any agency preparing regulations to develop regulations that are as simple and implement the bill would, as a matter of effective as possible. The agency should course, seek comments and assistance from endeavor not only to tap the best sources other agencies that might be affected or of business advice but also specialists from might possess relevant information. We are the nonbusiness sphere. The Board, ac­ concerned, however, that a mandatory re­ cordingly, sees no need to establish an quirement to this effect might result in the advisory committee as provided in section voiding of a regulation on the ground that 5(c) and it seems particularly doubtful that an agency with some related functions had the best sources of advice would be avail­ been overlooked in the consultation process. able at $25 per day. We suggest, therefore, that the quoted pro­ We appreciate the cooperation that the vision be deleted. committee and its staff have already ex­ A measure such as S. 5 obviously will tended, Mr. Chairman, in connection with depend for its success largely upon the these hearings, and we are very desirous of cooperation of the various classes of busi­ assisting in any way possible your efforts nesses affected. Therefore, the agency that to perfect the bill. Members of our staff prescribes the regulations necessarily will will gladly consult with the committee’s consult with representatives of the creditors staff to that end. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Membership of the Board of Governors of the Federal Reserve System, 1913-67 APPOINTIVE MEMBERS ' Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin...............................Boston.......................Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936, on which date his successor took office. Paul M. Warburg................................New York...........................do........ Term expired Aug. 9, 1918. Frederic A. Delano.............................Chicago...............................do........ Resigned July 21, 1918. W. P. G. Harding................................Atlanta................................do........ Term expired Aug. 9, 1922. Adolph C. Miller................................San Francisco.....................do........ Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936, on which date his successor took office. Albert Strauss.....................................New York...................Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah.......................Chicago......................Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Platt.....................................New York..................June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. ‘ David C. Wills....................................Cleveland...................Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell.................................Minneapolis...............May 12, 1921 Resigned May 12, 1923. Milo D. Campbell..............................Chicago......................Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger...........................Cleveland...................May 1, 1923 Resigned Sept. 15, 1927. George R. James................................St. Louis.....................May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936, on which date his successor took office. Edward H. Cunningham....................Chicago...............................do........ Died Nov. 28, 1930. Roy A. Young.....................................Minneapolis..............Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer......................................New York.................Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee............................Kansas City..............May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black..................................Atlanta......................May 19, 1933Resigned Aug. 15, 1934. M. S. Szymczak...................................Chicago.....................June 14, 1933Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas........................................Kansas City........................do........ Served until Feb. 10, 1936, on which date his successor took office. Marriner S. Eccles...............................San Francisco...........Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Re­ signed July 14, 1951. Joseph A. Broderick............................New York..................Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee...................................Cleveland............................do........ Served until Apr. 4, 1946, on which date his successor took office. Ronald Ransom..................................Atlanta................................do........ Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison............................Dallas........................Feb. 10, 1936Resigned July 9, 1936. Chester C. Davis..................................Richmond.................June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper................................New York.................Mar. 30, 1938 Served until Sept, 1, 1950, on which date his successor took office. Rudolph M. Evans..............................Richmond.................Mar. 14, 1942 Served until Aug. 13, 1954, on which date his successor took office. James K. Vardaman, Jr.......................St. Louis....................Apr. 4, 1946Resigned Nov. 30, 1958. Lawrence Clayton................................Boston........................Feb. 14, 1947Died Dec. 4, 1949. Thomas B. McCabe............................Philadelphia..............Apr. 15, 1948 Resigned Mar. 31, 1951. For notes see following page. 750 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MEMBERSHIP OF BOARD OF GOVERNORS 751 APPOINTIVE MEMBERS '—Continued Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Edward L. Norton..............................Atlanta......................Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell...................................Minneapolis.......................do........ Resigned June 30, 1952. Wm. McC. Martin, Jr.........................New York..................Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. “ A. L. Mills, Jr......................................San Francisco............Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson....................................Kansas City.......................do........ Reappointed for term beginning Feb. 1, 1964. Paul E. Miller.....................................Minneapolis...............Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston.........................Philadelphia...............Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson.........................Dallas.........................Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr....................................Atlanta.......................Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell............................Chicago.....................Aug. 31, 1961 Reappointed for term beginning Feb. 1, 1962. J. Dewey Daane.................................Richmond..................Nov. 29, 1963 Sherman J. Maisel..............................San Francisco..........Apr. 30, 1965 Andrew F. Brimmer...........................Philadelphia...............Mar. 9, 1966 William W. Sherrill............................Dallas.........................May 1, 1967 CHAIRMEN3 VICE CHAIRMEN 3 Charles S. Hamlin.............Aug. 10, 1914-Aug. 9, 1916. Frederic A. Delano...........Aug. 10, 1914-Aug. 9,1916. W. P. G. Harding..............Aug. 10, 1916-Aug. 9, 1922. Paul M. Warburg..............Aug. 10, 1916-Aug. 9, 1918. Daniel R. Crissinger.........May 1, 1923-Sept. 15, 1927. Albert Strauss.....................Oct. 26, 1918-Mar. 15, 1920. Roy A. Young...................Oct. 4, 1927-Aug. 31, 1930. Edmund Platt.....................July 23, 1920-Sept. 14, 1930. Eugene Meyer...................Sept. 16, 1930-May 10, 1933. J. J. Thomas.......................Aug. 21, 1934-Feb. 10, 1936. Eugene R. Black................May 19, 1933-Aug. 15, 1934. Ronald Ransom.................Aug. 6, 1936-Dec. 2, 1947. Marriner S. Eccles............Nov. 15, 1934-Jan. 31, 1948. C. Canby Balderston........Mar. 1 1, 1955-Feb. 28, 1966. Thomas B. McCabe..........Apr. 15, 1948-Mar. 31, 1951. J. L. Robertson.................Mar. 1,1966 Wm. McC. Martin............Apr. 2, 1951 EX-OFFICIO MEMBERS 1 SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo.................Dec. 23, 1913-Dec. 15,1918. John Skelton Williams... Feb. 2, 1914-Mar. 2,1921. Carter Glass.......................Dec. 16, 1918-Feb. 1, 1920. Daniel R. Crissinger...........Mar. 17, 1921-Apr. 30, 1923. David F. Houston.............Feb. 2, 1920-Mar. 3, 1921. Henry M. Dawes.................May 1, 1923-Dec. 17, 1924. Andrew W. Mellon...........Mar. 4, 1921-Feb. 12, 1932. Joseph W. McIntosh..........Dec. 20, 1924-Nov. 20, 1928. Ogden L. Mills..................Feb. 12, 1932-Mar. 4, 1933. J. W. Pole............................Nov. 21, 1928-Sept. 20, 1932. William H. Woodin..........Mar. 4, 1933-Dec. 31, 1933. J. F. T. O’Connor..............May 11, 1933-Feb. 1,1936. Henry Morgenthau, Jr... .Jan. 1, 1934-Feb. 1,1936. 1 Under the provisions of the original Federal Reserve Act the appointive members; that the Secretary of the Treasury and the Comp- Federal Reserve Board was composed of seven members, including trollerof the Currency should continue to serve as members until five appointive members, the Secretary of the Treasury, who was ex- Feb. 1, 1936; that the appointive members in office on the date of that officio chairman of the Board, and the Comptroller of the Currency. Act should continue to serve until Feb, 1, 1936, or untiltheir successors The original term of office was 10 years, and the five original ap- were appointed and had qualified; and that thereafter the terms of pointive members had terms of 2, 4, 6, 8, and 10 years, respectively. members should be 14 years and that the designation of Chairman In 1922 the number of appointive members was increased to six, and and Vice Chairman of the Board should be for a term of 4 years, tn 1933 the term of office was increased to 12 years. The Banking Act 2 Date after words “Resigned” and “Retired” denotes final day of of 1935, approved Aug. 23, 1935, changed the name of the Federal service. Reserve Board to the Board of Governors of the Federal Reserve 3 Chairman and Vice Chairman were designated Governor and Vice System and provided that the Board, should be composed of seven Governor before Aug. 23, 1935. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material wares, merchandise or commodities in the United ERRATUM States, and not transacting any business in the United States except such as in the judgment of The voting record on the Board’s Order the Board . . . may be incidental to its interna­ approving an application by Valley Bancor­ tional or foreign business”. poration, Appleton, Wisconsin, to acquire The Board recognized the closeness of the ques­ shares of American State Bank, Grand tion whether the company is engaged in the gen­ Chute, Wisconsin, which was printed in the eral business of buying or selling goods in the April 1967 Federal Reserve Bulletin at United States. It concluded, however, that the ac­ page 578, contained a printing error and tivities of the company in acting as agent or broker should have read as follows: for foreign clients where there is no market risk Voting for this action: Chairman Martin, and on the part of the company, or in acting as princi­ Governors Shepardson, Mitchell, Daane, and Brimmer. Voting against this action: Gover­ pal where there are offsetting firm orders for for­ nors Robertson and Maisel. eign clients, would not cause it to be “engaged in the general business of buying or selling goods, wares, merchandise or commodities in the United ACQUISITION BY EDGE CORPORATION OF STOCK States ... ”, OF COMBINATION EXPORT MANAGER While the activities of the company are closely The Board of Governors has been presented related to those of companies engaged in a com­ with the question whether a corporation organized mercial business in the United States, the sole under section 25(a) of the Federal Reserve Act business of the company is to act as an inter­ (an “Edge corporation”) may acquire and hold a mediary between domestic manufacturers and noncontrolling stock interest in a company en­ foreign consumers. Moreover, the company is ex­ gaged in the United States in the business of clusively concerned with the effecting of interna­ combination export manager. tional transactions and its activities in the United The company and the clients for which it acts States are entirely directed to that end. Accord­ as export sales manager are located in the United ingly, it was the judgment of the Board that the States. Through designated agents and distributors activities of the company in the United States are abroad, the company obtains foreign orders for its “incidental to its international or foreign business”. clients in the United States or, against firm orders Inasmuch as the activities of the company in from abroad, itself purchases merchandise from the United States conform to the requirements them and reinvoices it for export. In no case does contained in the eighth paragraph of section the company maintain inventories of unsold mer­ 25(a) of the Federal Reserve Act, and the acqui­ chandise, nor does it make any sales in the United sition of a stock interest therein by an Edge States. corporation would otherwise be likely to further The eighth paragraph of section 25(a) of the the foreign commerce of the United States, the Federal Reserve Act (12 U.S.C. 615) authorizes Board concluded that such an acquisition and an Edge corporation, with the consent of the holding would be permissible and appropriate. Board, “to purchase and hold stock or other cer­ In view of the serious and difficult questions tificates of ownership in any other corporation presented by the foregoing application, the Board organized . . . under the laws of any foreign emphasized that its decision was based on the par­ country or a colony or dependency thereof, or ticular facts of this case, and that applications by under the laws of any State, dependency, or insular Edge corporations for permission to make similar possession of the United States but not engaged acquisitions will necessarily be decided on their in the general business of buying or selling goods, own merits. Because of the closeness of this case, 752 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 753 the Board also stated that Edge corporations may SECTION 206.4—REGISTRATION STATE­ wish to obtain the prior specific consent of the MENTS AND REPORTS OF BANKS Board before making investments of the kind de­ (a) Requirement of registration statement. Se­ scribed herein, even though a proposed investment curities of a bank shall be registered under the technically might fall within the general consent provisions of either section 12(b) or section 12(g) provisions of section 211.8(a) of Regulation K. of the Act by filing a statement in conformity with the requirements of Form F-l (or Form F-10, in SECURITIES OF MEMBER STATE BANKS the case of registration of an additional class of The Board of Governors, effective April 20, securities). No registration shall be required under 1967, amended section 206.4(a) of Regulation F, the provisions of section 12(b) or section 12(g) of to provide for the use of a new form (Form F-10) the Act of any warrant or certificate evidencing for registration of additional classes of securities a right to subscribe to or otherwise acquire a by banks with securities already registered pur­ security of a bank if such warrant or certificate suant to Regulation F. The amendment to the by its terms expires within 90 days after the Regulation and the new form read as follows: issuance thereof. (Effective April 20, 1967, the Board of Gover­ AMENDMENT TO REGULATION F nors adopted a new Form F-10, “Registration Effective April 20, 1967, section 206.4(a) is Statement for Additional Classes of Securities of amended to read as follows: a Bank”, which is printed separately.) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Washington, D.C. 20551 FORM F-10 REGISTRATION STATEMENT FOR ADDITIONAL CLASSES OF SECURITIES OF A BANK Pursuant to Section 12(b) or Section 12(g) of the Securities Exchange Act of 1934 (Exact name of bank as specified in charter) (Address of principal office) Securities being registered pursuant to section 12(b) of the Act: Title of class Name of each exchange on which class is being registered Title of each class of equity securities being registered pursuant to section 12(g) of the Act: GENERAL INSTRUCTIONS (b) For registration on a national securities exchange pursuant to section 12(b) of the Act of 1. Applicability of this form. This form may be any class of securities of a bank which has one used for registration of the following securities or more other classes of securities so registered pursuant to the Securities Exchange Act of 1934: on the same securities exchange. (a) For registration pursuant to section 12(g) of the Act of any class of equity securities of a 2. Preparation of registration statement. This bank which has one or more other classes of form is not to be used as a blank form to be securities registered pursuant to either section filled in but only as a guide in the preparation 12(b) or (g) of the Act. of a registration statement. Particular attention Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN • MAY 1967 should be given to the general requirements in outline briefly such of the following as are relevant section 206.4 of Federal Reserve Regulation F. (see Instruction 2 following): The statement shall contain the numbers and (a) Provisions with respect to interest, con­ captions of all items, but the text of the items version, maturity, redemption, amortization, sink­ may be omitted if the answers with respect thereto ing fund or retirement. are prepared in the manner specified in section (b) Provisions with respect to the kind and 206.4(s). priority of any lien, securing the issue, together with a brief identification of the principal prop­ INFORMATION REQUIRED IN erties subject to such lien. REGISTRATION STATEMENT (c) Provisions restricting the declaration of Item 1. Stock to be registered. If stock is being dividends or requiring the maintenance of any registered, state the title of the class and furnish ratio of assets, the creation or maintenance of the following information (See Instruction 1): reserves or the maintenance of properties. (a) Outline briefly (1) dividend rights; (2) (d) Provisions permitting or restricting the voting rights; (3) liquidation rights; (4) pre­ issuance of additional securities, the withdrawal emptive rights; (5) conversion rights; (6) redemp­ of cash deposited against such issuance, the in­ tion provisions; (7) sinking fund provisions, and curring of additional debt, the release or substi­ (8) liability to further calls or to assessment. tution of assets securing the issue, the modification (b) If the rights of holders of such stock may of the terms of the security, and similar provisions. be modified otherwise than by a vote of a majority Instruction 1. Provisions permitting the release of or more of the shares outstanding, voting as a assets upon the deposit of equivalent funds or the class, so state and explain briefly. pledge of equivalent property, the release of property no longer required in the business, obsolete property (c) Outline briefly any restriction on the repur­ or property taken by eminent domain, the application chase or redemption of shares by the bank while of insurance moneys, and similar provisions, need there is any arrearage in the payment of dividends not be described. or sinking fund instalments. If there is no such (e) The name of the trustee and the nature of restriction, so state. any material relationship with the bank or any of its affiliates; the percentage of securities of the Instructions. 1. If a description of the securities comparable to that required here is contained in any class necessary to require the trustee to take other document filed with the Board, such description action, and what indemnification the trustee may may be incorporated by reference to such other require before proceeding to enforce the lien. filing in answer to this item. If the securities are (f) The general type of event which constitutes to be registered on a national securities exchange and a default and whether or not any periodic evidence the description has not previously been filed with such exchange, copies of the description shall be is required to be furnished as to the absence of filed with copies of the registration statement filed default or as to compliance with the terms of with the exchange. the indenture. 2. This item requires only a brief summary of the Instruction 2. In most cases, debt securities issued provisions which are pertinent from an investment by banks need not be registered pursuant to section standpoint. A complete legal description of the pro­ 12(g) of the Securities Exchange Act; the registration visions referred to is not required and should not be requirements of that section apply only to an “equity given. Do not set forth the provisions of the govern­ security”. The term “equity security” is defined by ing instruments verbatim; only a succinct resume is section 3(a)(ll) of the Act to mean “any stock or required. similar security; or any security convertible, with or 3. If the rights evidenced by the securities to be without consideration, into such a security; or carry­ registered are materially limited or qualified by the ing any warrant or right to subscribe to or purchase rights evidenced by any other class of securities or such a security; or any such warrant or right; or by the provisions of any contract or other document, any other security which the [Board] shall deem include such information regarding such limitation to be of similar nature and consider necessary or or qualification as will enable investors to understand appropriate, by such rules and regulations as it may the rights evidenced by the securities to be registered. prescribe in the public interest or for the protection Item 2. Debt securities to be registered. If the of investors, to treat as an equity security.” securities to be registered hereunder are bonds, Instruction 3. The instructions to Item 1 also apply debentures or other evidences of indebtedness, to this item. 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LAW DEPARTMENT 755 Item 3. Other securities to be registered. If hi the matter of the application of Union securities other than those referred to in Items 1 County Trust Company for approval of merger and 2 are to be registered hereunder, outline with Hillside State Bank. briefly the rights evidenced thereby. If subscrip­ Order Approving Merger of Banks tion warrants or rights are to be registered, state the title and amount of securities called for, and There has come before the Board of Governors, the period during which and the price at which pursuant to the Bank Merger Act, as amended the warrants or rights are exercisable. (12 U.S.C. 1828(c), Public Law 89-356), an application by Union County Trust Company, Instruction. The instructions to Item 1 also apply to this item. Elizabeth, New Jersey, a State member bank of Item 4. Exhibits. List all exhibits filed as a the Federal Reserve System, for the Board’s prior part of the registration statement. approval of the merger of that bank and Hillside State Bank, Hillside, New Jersey, under the SIGNATURE charter and title of Union County Trust Company. Pursuant to the requirements of the Securities As an incident to the merger, the sole office of Exchange Act of 1934, the bank has duly caused Hillside State Bank would become a branch of the this registration statement to be signed on its resulting bank. Notice of the proposed merger, in behalf by the undersigned, thereunto duly author­ form approved by the Board, has been published ized. pursuant to said Act. Upon consideration of all relevant material in (Name of Bank) the light of the factors set forth in said Act, in­ cluding reports furnished by the Comptroller of Date-------By----------------------------------------------- the Currency, the Federal Deposit Insurance Cor­ (Name and Title of Signing Officer) poration, and the Attorney General on the com­ petitive factors involved in the proposed merger. INSTRUCTIONS AS TO EXHIBITS It is hereby ordered, for the reasons set forth Subject to section 206.4 (o) of Regulation F in the Board’s Statement of this date, that said regarding the incorporation of exhibits by ref­ application be and hereby is approved, provided erence, the exhibits enumerated hereinafter shall that said merger shall not be consummated (a) be filed as a part of the registration statement. before the thirtieth calendar day following the Exhibits shall be appropriately lettered or num­ date of this Order or (b) later than three months bered for convenient reference. Exhibits incor­ after said date. porated by reference may bear the designation Dated at Washington, D. C., this 10th day of given in the previous filing. Where exhibits are April, 1967. incorporated by reference, the reference shall be made in the list of exhibits in Item 4. By order of the Board of Governors. 1. Specimens or copies of each security to be Voting for this action: Vice Chairman Robertson, and registered hereunder. Governors Shepardson, Mitchell, and Daane. Voting against this action: Governors Maisel and Brimmer. 2. Copies of all constituent instruments de­ Absent and not voting: Chairman Martin. fining the rights of the holders of each class of (Signed) Merritt Sherman, such securities, including any contracts or other Secretary. documents which limit or qualify the rights of [seal] such holders. Statement ORDERS UNDER BANK MERGER ACT Union County Trust Company, Elizabeth, New The following Orders and Statements were Jersey (“Union Bank”), with total deposits of issued by the Board of Governors approving ap­ $157.6 million, has applied, pursuant to the Bank plications for the merger of banks: Merger Act (12 U.S.C. 1828(c), as amended by UNION COUNTY TRUST COMPANY, Public Law 89-356), for the Board’s prior ap­ ELIZABETH, NEW JERSEY proval of the merger of that bank with Hillside Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN • MAY 1967 State Bank, Hillside, New Jersey (“Hillside because it appears unlikely that Hillside Bank will Bank”), which has total deposits of $5.8 million.1 develop into a viable competitor. The degree of The banks would merge under the charter and increase in concentration in banking resources in name of Union Bank, which is a member of the Union County that would result from the merger Federal Reserve System. As an incident to the is not regarded as significant. merger, Hillside Bank’s single office would be­ Accordingly, the Board concludes that the over­ come a branch of Union Bank, increasing the all effect of the merger on competition would not number of its offices to 14/ be significantly adverse. Competition. Union Bank is the second largest Financial and managerial resources and future of 15 banks in Union County, New Jersey, the prospects. Hillside Bank has had operational prob­ area of effective competition, holding 18 per cent lems since it opened for business in November of the county’s deposits. Upon consummation of 1962. It sustained substantial operating losses in the proposal, the bank would control approxi­ the first two years of its operation and, faced with mately 19 per cent of total county deposits; how­ the need for additional capital, two groups of ever, its size relationship to other county banks stockholders vied for control of the bank in would not be appreciably changed. The largest January 1965. Since that time efforts to raise addi­ bank in the area holds 21 per cent of the county tional capital have been blocked and the bank’s deposits. The third and fourth largest banks in the capital position has worsened. In 1966, the bank county each hold approximately 13 per cent of experienced heavy loan losses and it appears that county deposits, and the other banks’ holdings it would be extremely difficult at this time to range from 1 to 8 per cent. The four largest Union attract new capital into the bank. County banks currently control about 66 per cent Hillside Bank has also experienced serious of the aggregate deposits and operate 58 per cent management problems. It has had three presidents of the banking offices in the county. in its relatively brief existence and, although the Elizabeth, New Jersey, in which Union Coun­ present president is believed to be capable, further ty’s main office is located, and Hillside are adjoin­ executive personnel are necessary if Hillside is to ing communities. The main offices of the two continue as an indepndent bank. In view of the banks are about four miles apart. Union Bank bank’s formidable internal problems, it is believed operates a branch system over a sizeable portion that it would be difficult to attract qualified of Union County and its Westminster office is officers. about three and one-half miles from Hillside Bank The financial and managerial resources and with no intervening banking offices. There are, future prospects of Union Bank are satisfactory however, two branches of National State Bank, and would not be adversely affected by effectua­ Elizabeth, New Jersey, the county’s largest bank, tion of the proposal. located in Hillside. In addition, there are branches In view of the above, the Board is of the of large Newark banks in adjoining Essex County, opinion that the banking factors give substantial which are within a two-mile radius of Hillside and weight for approval of the merger. compete for business in that community. Convenience and needs of the community. The It would appear that the area served by Hillside major banking needs within the service areas of Bank is within the area served by Union Bank and these banks are presently being served and approval some actual and potential competition would be of the merger proposal would have no significant eliminated by the merger. However, due to the effect upon the Hillside community. difference in the size of the two banks and certain internal problems of Hillside Bank, as hereinafter Summary and conclusion. In the judgment of described, it is the Board’s opinion that no signifi­ the Board, consummation of the proposal would cant existing competition between the two institu­ not result in any significantly adverse consequences tions would be eliminated by the merger proposal for banking competition and would provide a and, further, that the proposed merger would not reasonable solution to Hillside Bank’s internal eliminate any significant potential competition, problems. Accordingly, the Board concludes that the 1 Deposit figures are as of June 30, 1966. 2 Includes an additional branch in Linden, New Jersey, that application should be approved. has not yet opened. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 757 Dissenting Statement of Governors Maisel Moreover, even if Hillside Bank was in a far ano Brimmer more serious condition, it has not been demon­ strated to us that a sufficient attempt has been Union Bank is the second largest bank in made to explore possible alternatives to the pro­ Union County, New Jersey, with 18 per cent of posed merger. New Jersey banking law prohibits the county’s deposits and 17 per cent of the branching across county lines. However, there are county’s banking offices. The four largest Union at least four other banks in Union County with County banks currently control about 66 per cent which Hillside might be merged without the ad­ of aggregate deposits and operate 58 per cent verse competitive results of the instant proposal. of the banking offices in the county. The majority concedes that the Hillside com­ Given these considerations, we are convinced munity is within the area currently served by that it is premature and contrary to the public Union Bank and that “some” actual and potential interest to allow the merger at this juncture. We competition would be eliminated by the merger would deny the application. proposal, although it concludes that the merger would not result in any “significant” elimination MANUFACTURERS AND TRADERS TRUST COMPANY, BUFFALO, NEW YORK of competition. The majority further indicates that Hillside Bank has formidable internal prob­ In the matter of the application of Manufac­ lems, impairing its ability to compete effectively, turers and Traders Trust Company for approval that would be solved by the merger. of merger with The Bank of Perry. We believe that approval of this merger will result in (1) a substantial elimination of com­ Order Approving Merger of Banks petition in the Hillside community, (2) diminu­ There has come before the Board of Governors, tion of actual and potential competition for Union pursuant to the Bank Merger Act (12 U.S.C. County, as a whole, and (3) an increase in con­ 1828(c)), an application by Manufacturers and centration of the banking resources of this area. Traders Trust Company, Buffalo, New York, a Further, in our judgment, this merger will, by State member bank of the Federal Reserve Sys­ reason of the elimination of an alternative source tem, for the Board’s prior approval of the merger of banking services, have an adverse effect on of that bank and The Bank of Perry, Perry, New the convenience and needs of the Hillside com­ York, under the charter and title of Manufacturers munity. Accordingly, in our opinion, the approval and Traders Trust Company. As an incident to of the merger would not be in the public interest the merger, the sole office of The Bank of Perry unless Hillside Bank faces difficulty of sufficient would become a branch of the resulting bank. gravity to warrant remedial action in the interest Notice of the proposed merger, in form approved of maintaining its soundness and there is no by the Board, has been published pursuant to feasible alternative solution to its problem.1 said Act. ft is not contended that Hillside Bank cannot continue as an independent bank, despite its Upon consideration of all relevant material in present internal problems. It is true that the bank the light of the factors set forth in said Act, has not experienced the growth rate in deposits including reports furnished by the Comptroller and profitability that was anticipated at its incep­ of the Currency, the Federal Deposit Insurance tion. It is also true that the bank has experienced Corporation, and the Attorney General on the serious management problems. Past attempts to competitive factors involved in the proposed raise new capital, which is sorely needed, have merger. been blocked. However, obstructions that pre­ It is hereby ordered, for the reasons set forth viously existed have now been removed. Accord­ in the Board’s Statement of this date, that said ingly, it does not appear that the problems faced application be and hereby is approved, provided by Hillside Bank are sufficiently grave as to that said merger shall not be consummated (a) necessitate the approval of this merger. before the thirtieth calendar day following the date of this Order or (b) later than three months 1 C.f. St. Joseph Valley Bank, 52 Fed. Res. Bulletin 1765 after the date of this Order. (1966). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN • MAY 1967 Dated at Washington, D. C., this 1st day of that might otherwise be available, would preclude May, 1967. M&T from establishing a new branch in or near Perry. By order of the Board of Governors. M&T, with 26 per cent of the deposits, is the Voting for this action: Chairman Martin, and Gov­ second largest of the 37 commercial banks in ernors Shepardson, Mitchell, Maisel, and Brimmer. the Ninth Banking District; Perry Bank, with less Voting against this action: Governor Robertson. Ab­ sent and not voting: Governor Daane. than half of 1 per cent of the deposits, ranks (Signed) Merritt Sherman, fourteenth.2 While the concentration of banking Secretary. resources is high in the Buffalo metropolitan area, [seal] the relevant geographical market in this case con­ sists of the area from which Perry Bank draws Statement its business and in which concentration is not a Manufacturers and Traders Trust Company, factor. Buffalo, New York (“M&T”), with total deposits Perry Bank derives most of its business from of about $735 million, has applied, pursuant to the Perry community and from the surrounding the Bank Merger Act (12 U.S.C. 1828(c)), for area within a radius of about five miles. Perry the Board’s prior approval of the merger of that Bank competes to some extent with eight offices bank with The Bank of Perry, Perry, New York of six banks, the largest of which (deposits of (“Perry Bank”), which has total deposits of about about $276 million) is headquartered in Roches­ $11 million.1 The banks would merge under the ter; this bank operates a branch in Mount Morris, charter and name of M&T, which is a member of which is nine miles east of Perry and in the Eighth the Federal Reserve System. As an incident to Banking District. The other five banks range in the merger, the sole office of Perry Bank would deposit size from about $5 million to $24 million, become a branch of M&T, increasing the number and two of them are subsidiaries of a registered of its offices to 67. bank holding company. The communities in which Competition. M&T is headquartered in Buffalo, the competing banking offices are located range and about 90 per cent of its total of 66 offices in population from about 400 to 4,000, and they are located in the Buffalo metropolitan area, are situated six to 14 miles from Perry. While which is in the westernmost part of New York’s M&T would be a stronger competitor than Perry Ninth Banking District. The sole office of Perry Bank, it does not appear that the merger would Bank is about 55 miles southeast of Buffalo at adversely affect the banking offices in the vicinity Perry, near the eastern boundary of the Ninth of Perry; these offices are well established and District. Perry (population about 5,000) is the draw the preponderance of their business from largest community in Wyoming County (popula­ their own communities. tion about 35,000). M&T has no offices in Wyo­ The proposed merger would have no significant ming County; its nearest office to Perry is about adverse effects on competition. 23 miles to the north in Batavia. Because of the Financial and managerial resources and pros­ distance separating the banks, and the presence pects. The banking factors with respect to each of other banking offices in the intervening area, of the banks proposing to merge are generally there is little competition existing between them. satisfactory, as they would be with respect to the It does not appear that meaningful competition resulting bank. would develop between M&T and Perry Bank if Convenience and needs of the communities. they did not merge, although New York law per­ The merger would affect banking convenience and mits a bank, subject to a home-office-protection needs only in the area presently served by Perry feature, to branch de novo in the State Banking Bank. There is evidence that Perry Bank has found District in which it is located. Because of Perry it necessary to share with other banks some of the Bank’s relatively small size, it does not appear loans that it has originated. These loans could probable that it would establish a branch near an easily have been accommodated by M&T. Further, office of M&T. The home-office-protection restric­ Perry Bank has either refused or terminated sev­ tion, as well as the small size of the communities eral commercial and agricultural loans, most of 1 Figures are as of December 31, 1966. - Figures are as of June 30, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 759 which would have been provided by M&T. In ad­ already great, the importance of preventing even dition, M&T would offer several services not of­ slight increases in concentration and so preserving fered by Perry Bank, including fiduciary and the possibility of eventual deconcentration is cor­ advisory services, consumer and small business respondingly great.” 1 revolving loans, and other specialized Joans. It should be noted that 30 of the 37 banks in the In general, M&T would offer a broad range of Ninth District hold altogether only 10 per cent of banking services, many of which are now avail­ the aggregate deposits and loans. M&T and the able to the customers of Perry Bank only through largest banking organization together hold about the Mount Morris branch of a Rochester-based 70 per cent of all the commercial bank deposits bank, nine miles from Perry. and loans in the Ninth District; and the three Summary and conclusion. In the judgment of largest banking organizations account for about 83 the Board, the proposed merger would benefit the per cent. The sixth and seventh largest each hold banking convenience and needs of the area served about 2 per cent; and the third and fifth largest by Perry Bank, and would not result in any hold, respectively, about 13 per cent and 3 per significant adverse consequences for banking com­ cent. Quite plainly, the acquisition by one of the petition. three largest banking organizations in the Ninth Accordingly, the Board concludes that the District of any of the other banks would not in it­ application should be approved. self involve a large percentage increase in the con­ centration of banking resources. But if such acqui­ Dissenting Statement of sitions were allowed to continue—as the majority’s Governor Robertson rationale for approving this application would per­ I differ from the majority as to the importance mit—the result would be a three-bank oligopoly of that should be attributed to the heavy concentra­ three organizations blanketing not only the Buffalo tion of commercial banking resources that exists area but the entire Ninth District.3 in New York’s westernmost Banking District. In Even if the merger would not eliminate existing New York, the Banking Districts are meaningful or potential competition between the merging for considering competitive effects because banks banks that is not the controlling consideration in are prohibited by State law from branching outside assessing the effect of the transaction on compe­ the District in which they are headquartered. Dis­ tition. The 1950 amendment to section 7 of the trict boundaries—like county boundaries where Clayton Act repealed the narrower test of whether an intra-county branching restriction prevails—de­ a merger’s effect might be substantially to lessen fine (although not precisely at the peripheries) the competition between the acquiring and the ac­ outer limits of, at least, a potential geographical quired corporations and made the test whether the market. The existence of meaningful geographical effect of a merger might be substantially to lessen sub-markets within the wider area does not change competition in any way. And, of course, there can this fact. Further, quite aside from whether a be no doubt that the competitive consequences of banking market tending toward District-wide pro­ a proposed transaction under the Bank Merger Act portions in this area might actually develop, this must be measured by the standards of the antitrust case presents the question of whether the existing laws.3 sectional markets in the Ninth District should be As its basis for approving the application, the permitted to develop, one-by-one, into oligopolies. majority cites alleged “convenience and needs” M&T, with 26 per cent of the deposits and 28 benefits to the area now served by Perry Bank. In per cent of the loans, is the second largest of the this matter, the majority relies exclusively on the 37 commercial banks in the Ninth Banking Dis­ self-serving declarations of the applicant, and contrict. Perry Bank, with deposits of $11 million, is the fourteenth largest bank in the Ninth District. 1 Uniled Slates v. Philadelphia Nat'l Bank, 373 U.S. 321, 365 n. 42. The absorption of Perry Bank by M&T will in­ 2 The three largest banking organizations already possess the financial and managerial resources to dominate banking in the crease the latter’s share of District deposits by less Ninth District; all they lack is a few more key locations and the majority of the Board seems willing to let them acquire the than 1 per cent; but it does not follow that the remaining independent banks. resulting increase in concentration of banking re­ 3 See, c.g., 112 Conx. Rec. 2233-35, 2337 (1966) (remarks of Rep. Patman and Rep. Reuss); see also United States v. First sources is inconsequential. “[Ijf concentration is Nat’l Bank of Houston, 35 U.S. Law Week 4303 (U.S. Mar. 27, 1967). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

760 FEDERAL RESERVE BULLETIN • MAY 1967 fers Brobdingnagian stature on Lilliputian circum­ FIRST AT ORLANDO CORPORATION, stances. During the twelve-month period preceding ORLANDO, FLORIDA this application, Perry Bank shared with other tn the matter of the application of First at Or­ banks only three loans that, either alone or in com­ lando Corporation, Orlando, Florida, for approval bination with other borrowings by the same cus­ of action to become a bank holding company tomer, exceeded Perry Bank’s legal lending limit. through the acquisition of 80 per cent or more of During the period 1964-66, Perry Bank refused or the voting shares of five hanks in the State of terminated only ten commercial and agricultural Florida. loans, and M&T does not claim that it would have extended all of these credits. In point of fact, the only evidence on the matter Order Extending Period of Time Prescribed by Proviso in Order of Approval that can be regarded as objective clearly shows that the legitimate credit needs of the area served Whereas, by Order dated January 26, 1967, the by Perry Bank are being met. In other words, Board of Governors, pursuant to section 3(a)(1) while M&T offers a broader range of services than of the Bank Holding Company Act of 1956 (12 does Perry Bank, there is no evidence that the U.S.C. 1842(a)(1), and section 222.4(a)(1) of banking needs of the Perry community are not Federal Reserve Regulation Y (12 CFR 222.4(a) being adequately and conveniently met. Moreover, (1), approved an application on behalf of First at the record indicates that the charges that M&T will Orlando Corporation, Orlando, Florida, for ap­ exact for certain services may be higher than those proval of action whereby Applicant would become now prevailing at Perry Bank. In my judgment, the a bank holding company through the acquisition of applicant has not established that the merger will 80 per cent or more of the voting shares of each of benefit the banking convenience and needs of the the following banks in or near Orlando, Florida: area. Thus, even if the competitive consequences The First National Bank at Orlando; College Park of the merger could be denominated as not signif­ National Bank at Orlando; South Orlando National icantly adverse (with which I could not agree), Bank; First National Bank at Pine Hills; and The the transaction would not be in the public inter­ Plaza National Bank at Orlando; and said Order est; the “convenience and needs” factor is not was made subject to the proviso “that the acquisi­ strong enough to outweigh even that kind of com­ tion so approved shall not be consummated . . . petitive factor. (b) later than three months after the date of the I conclude, on the record in this case, that the Order” and majority’s approval of the proposed merger is Whereas, First at Orlando Corporation has contrary to the purpose and the directions of the applied to the Board for an extension of time with­ Bank Merger Act, and that it sets an unfortunate in which the approved acquisition shall be consum­ precedent both for future cases in the Ninth Bank­ mated, and it appearing to the Board that reason­ ing District and for the general administration of able cause has been shown for the extension of time requested, and that such extension would not the Act. be inconsistent with the public interest; ORDERS UNDER SECTION 3 OF It is hereby ordered, that the Board’s Order BANK HOLDING COMPANY ACT of January 26, 1967, as published in the Federal Register on February 2, 1967 (32 Federal Register The Board of Governors issued the following 1202) be, and it hereby is, amended so that the Order extending the period of time within which proviso relating to the date by which the acquisi­ a corporation might become a bank holding tion approved shall be consummated shall read company. The Board also issued the following “(b) later than June 30, 1967.” Orders and Statements approving or denying ap­ Dated at Washington, D. C., this 21st day of plications by bank holding companies for per­ April, 1967. mission to acquire voting shares of additional By order of the Board of Governors. banks, and Orders and Statements approving or (Signed) Merritt Sherman, denying applications for permission to become Secretary. bank holding companies: [seal] Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 761 FIRST WISCONSIN BANKSHARES Governors Shepardson, Mitchell, Daane, Maisel, and CORPORATION, MILWAUKEE, WISCONSIN Brimmer. Absent and not voting: Chairman Martin. (Signed) Merritt Sherman, In the matter of the application of First Wiscon­ Secretary. sin Bankshares Corporation, Milwaukee, Wiscon­ [seal] sin, for approval of the acquisition of 80 per cent or more of the outstanding voting shares of Wau­ Statement nakee State Bank, Waunakee, Wisconsin. First Wisconsin Bankshares Corporation, Mil­ waukee, Wisconsin (“Applicant”), a registered Order Approving Application Under bank holding company, has applied to the Board Bank Holding Company Act of Governors, pusuant to section 3(a) of the Bank There has come before the Board of Governors, Holding Company Act of 1956, as amended (“the pursuant to section 3(a) of the Bank Holding Act”), for prior approval of the acquisition of 80 Company Act of 1956 (12 U.S.C. 1842(a)), and per cent or more of the outstanding voting shares section 222.4(a) of Federal Reserve Regulation Y of Waunakee State Bank, Waunakee, Wisconsin (12 CFR 222.4(a)), an application by First Wis­ (“Bank”). Applicant controls nine banks with 25 consin Bankshares Corporation, Milwaukee, Wis­ offices and aggregate deposits of $1.1 billion at June 30, 1966.1 Bank, which operates a single consin, a registered bank holding company, for office in Waunakee, has deposits of $3.3 million. the Board’s approval of the acquisition of 80 per Views and recommendation of supervisory au­ cent or more of the outstanding voting shares of thority. As required by section 3(b) of the Act, Waunakee State Bank, Waunakee, Wisconsin. the Board notified the Commissioner of Banks for As required by section 3(b) of the Act, notice the State of Wisconsin of receipt of the applica­ of receipt of the application was given to the Com­ tion and requested his views and recommendation missioner of Banks for the State of Wisconsin with thereon. In response, the Commissioner advised a request for his views and recommendation. The that he would interpose no objection to Appli­ Commissioner advised that he had no objection to cant’s proposal. approval of the application. Statutory factors. Section 3(c) of the Act pro­ Notice of receipt of the application was pub­ vides that the Board shall not approve an acquisi­ lished in the Federal Register on February 15, tion that would result in a monopoly, or be in 1967 (32 Federal Register 2915), providing an furtherance of any combination or conspiracy to opportunity for submission of comments and monopolize or to attempt to monopolize the busi­ ness of banking in any part of the United States. views regarding the proposed acquisition. A copy Nor may the Board approve any other proposed of the application was forwarded to the Depart­ acquisition, the effect of which, in any section of ment of Justice for its consideration. The time for the country, may be substantially to lessen com­ filing such comments and views has expired and petition, or tend to create a monopoly, or which all those received have been considered by the in any other manner would be in restraint of Board. . trade, unless the Board finds that the anticompeti­ It is ordered, for the reasons set forth in the tive effects of the proposed transaction are clearly Board’s Statement of this date, that said applica­ outweighed in the public interest by the probable tion be and hereby is approved, provided that the effect of the transaction in meeting the conve­ acquisition so approved shall not be consummated nience and needs of the community to be served. (a) before the thirtieth calendar day after the date In each case, the Board is required to take into of this Order or (b) later than three months after consideration the financial and managerial re­ the date of the Order. sources and future prospects of the bank holding Dated at Washington, D. C., this 13th day of company and the banks concerned, and the April, 1967. convenience and needs of the community to be served. By order of the Board of Governors. 1 All banking data noted are as of this date, unless otherwise Voting for this action: Vice Chairman Robertson, and indicated. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

762 FEDERAL RESERVE BULLETIN • MAY 1967 Competitive effect of proposed transaction. The area. These deposits amounted to only .3 per cent 10 largest banking organizations in the State of of the total IPC deposits of First National. Con­ Wisconsin control $2.5 billion of deposits, or 38 versely, First National derived deposits of $832,­ per cent of the total deposits of all insured com­ 000 from the primary service area of Bank, mercial banks. The three largest of these 10 amounting to .4 per cent of its total IPC deposits organizations, of which Applicant ranks first in and 13 per cent of the total of such deposits held size, control 30 per cent of such total deposits. by Bank. With respect to competition for loans Applicant, with nine subsidiary banks (25 offices), between First National and Bank, the record controls $1.1 billion of deposits, or 3 per cent of reflects that Bank derives about 1 per cent of its the total banking offices and 17 per cent of the total of commercial loans from First National’s total deposits in the State. Applicant’s share of service area, and approximately 19 per cent the total deposits in the State will increase but ($30,000) of its total of consumer loans. First slightly—.05 per cent—upon consummation of National derives .9 per cent of its commercial its proposal. and industrial loans and .8 per cent of its con­ Bank is located in the village of Waunakee sumer loans from Bank’s primary service area. about 11 miles from the central business district Competition between the two banks for farm of the State capital, Madison. Both Waunakee and loans is negligible. Applicant’s remaining sub­ Madison are located in Dane County. Bank’s sidiary banks are located from 77 to 175 miles primary service area,2 with an estimated popula­ from Waunakee. Competition between Bank and tion of 3,200, encompasses Waunakee and the any of these subsidiaries is virtually nonexistent. immediately surrounding rural area. Applicant’s It is reasonably concluded that no significant Madison subsidiary, with deposits of $119 mil­ competition between Bank and Applicant’s sub­ lion, is the largest of the 30 banks located in Dane sidiaries will be eliminated by consummation of County. Acquisition of Bank would increase Applicant’s proposal. Nor, for reasons hereafter Applicant’s present control of deposits in Dane discussed, does it appear likely that any substan­ County (33 per cent) by 1 per cent. Within tial competition will arise between Bank and Bank’s primary service area, there is located but Applicant’s banks, the growth of which would be one other bank, Farmers State Bank ($2 million foreclosed by the proposed acquisition. of deposits). However, 17 other banking institu­ Consideration of the probable impact of Appli­ tions, including Applicant’s Madison subsidiary, cant’s acquisition of Bank on other competing First National Bank of Madison (“First Na­ banks in the relevant area offers no bar to ap­ tional"), compete within Bank’s service area. proval of this proposal. As earlier stated, the only Applicant controls 39 per cent of the total de­ other bank located in Bank’s primary service area posits of the 19 banks competing in this area, a is Farmers State Bank. The deposit and loan control that would be increased by 1 per cent by growth rate of Farmers State Bank in recent years consummation of Applicant’s proposal. compares favorably with that of Bank. While While the foregoing data reflect the significant Applicant’s ownership of Bank may be expected degree to which Applicant shares in the large to offer an increased degree of competition to organization control of the banking resources in Farmers State Bank, the total of such competitive the State, the Board concludes that these data force is not reasonably anticipated to be unduly and other relevant facts of record do not estab­ severe. With the possible exception of the impact lish that Applicant’s acquisition of Bank would on Lake City Bank, located 7.5 miles southeast result in a monopoly, or be in furtherance of any of Bank, Applicant’s operation of Bank is reason­ combination or conspiracy to monopolize or at­ ably anticipated to have the effect of stimulating tempt to monopolize the business of banking in competition with the remaining 17 banks compet­ any relevant area of the State. ing in the relevant area. Lake City Bank has re­ About 10 per cent of Bank’s IPC deposits cently opened for business and its rate of growth originate within First National’s primary service may be somewhat slowed by Applicant’s acquisi­ tion of Bank. This consequence is outweighed, in 2 Area from which Bank derives 75 per cent of its total of the Board’s judgment, by the potential benefits, deposits of individuals, partnerships, and corporations (“fPC hereafter discussed, to both Bank and the public. deposits”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 763 In summary, the Board concludes, on the basis by the evidence of recent improvement in Bank’s of the record before it, that Bank's operation as operations under Applicant’s guidance. The fore­ part of Applicant’s holding company system would going consideration favors approval of Applicant’s not result in a substantial lessening of competition, proposal. nor tend to create a monopoly, or be in restraint Convenience and needs of the area involved. of trade in any relevant area. Waunakee is essentially an agriculturally oriented Financial and managerial resources and future residential community. A majority of its wage prospects. Organized in 1929 as a bank holding earners are employed in Madison and commute company, Applicant has a history of sound opera­ there daily. The number of such commuters can tion and growth. Its financial condition, and that reasonably be expected to increase substantially of its subsidiary banks, is considered to be satis­ in the next few years as the economy of Madison factory. Applicant’s prospects, directly related to expands. the financial condition of its subsidiary banks, are As earlier stated, there are 18 banks in addition favorable, as are the prospects of its banks. The to Bank competing within Bank’s primary service management of Applicant and of its subsidiary area. These banks, ranging in deposit size from banks is considered capable and experienced and less than $1 million to $119 million, are presently in all respects satisfactory. serving the major banking needs of the residents Bank was organized in 1902 and has a history and businesses of the Waunakee area, albeit less of sound but conservative operation. Its general conveniently than would be the case under Appli­ financial condition is considered satisfactory. cant’s proposal. Applicant, through its ownership Under present ownership, Bank’s prospects are of Bank, would make conveniently available to the considered only fair. At the present time Bank’s Waunakee area a number of services not now President, 81 years of age, and its Vice President available from the two Waunakee banks. In ad­ are both inactive. Illness of operating personnel dition, Applicant proposes to provide additional and disharmony between and among Bank’s offi­ capital to Bank as may be required, which pro­ cers and directors have resulted in Bank being vision has particular significance in relation to without continuous experienced operating man­ a need for physical expansion. These prospects, agement since early 1964. From June 1966 to and that of the improvement in Bank’s manage­ date, active management of Bank has been the ment under Applicant’s ownership, constitute con­ responsibility of a cashier and director who is an siderations favoring approval of the application. employee of Applicant. The record reflects that Conclusion. On the basis of all the relevant facts significant improvement in Bank’s organization contained in the record, and in light of the fac­ and operations has been effected by the individual tors set forth in section 3(c) of the Act, it is the supplied by Applicant. Applicant has agreed to Board’s judgment that the proposed transaction leave this individual in the bank either until would be in the public interest and that the consummation of this proposal or, in the event application should be approved. of denial, for a reasonable period thereafter. ALLIED BANKSHARES CORP., It appears from the record that Bank’s prob­ NORFOLK, VIRGINIA lems, managerial and operational, are principally In the matter of the application of Allied Bank­ the result of policy decisions formulated by shares Corp., Norfolk, Virginia, for approval of present ownership. While a substantial change in action to become a bank holding company through management policy would undoubtedly relieve a the acquisition of more than 50 per cent of the number of the bank’s problems, there is no indi­ voting shares of Virginia National Bank, Norfolk, cation that any such policy changes would occur Virginia, and The Central National Bank of Rich­ if present ownership continues. Nor is there evi­ mond, Richmond, Virginia. dence that, with respect to alternatives for pur­ chase, any such reasonable alternative exists to Order Denying Application Under Applicant’s proposal. Accordingly, the Board Bank Holding Company Act concludes that Applicant’s proposal constitutes a There has come before the Board of Governors, certain and immediate solution to Bank’s man­ pursuant to section 3(a)(1) of the Bank Holding agement problem, a conclusion that is supported Company Act of 1956 (12 U.S.C. 1842(a)(1)), Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

764 FEDERAL RESERVE BULLETIN • MAY 1967 and section 222.4(a)(1) of Federal Reserve Richmond, Virginia (“Central National”). As of Regulation Y (12 CFR 222.4(a) (1)), an applica­ June 30, 1966,1 Virginia National, with 75 tion by Allied Bankshares Corp., Norfolk, Vir­ offices and total deposits of $530 million, is the ginia, for the Board’s prior approval of action largest bank and the second largest banking or­ whereby Applicant would become a bank holding ganization in Virginia in terms of total deposits. company through the acquisition of more than Measured by the number of counties, cities, and 50 per cent of the voting shares of Virginia Na­ towns in which branch offices are located, Vir­ tional Bank, Norfolk, Virginia, and The Central ginia National must be considered as large as any National Bank of Richmond, Richmond, Vir­ banking organization in the State, Central Na­ ginia. tional, with $157 million of deposits in its nine As required by section 3(b) of the Act, the offices, is the sixth largest bank and the eighth Board gave written notice of receipt of the applica­ largest banking organization in the State. tion to the Comptroller of the Currency and Views and recommendation of supervisory au­ requested his views and recommendation. thority. As required by section 3(b) of the Act, Notice of receipt of the application was pub­ notice of receipt of the application was given to, lished in the Federal Register on November 23, and views and recommendation requested of, the 1966 (31 Federal Register 14854), which pro­ Comptroller of the Currency. While the Comp­ vided an apportunity for interested persons to troller did not affirmatively recommend approval submit comments and views with respect to the of the application, he raised no objection to the proposed acquisition. A copy of the application proposal, and expressed the view that consumma­ was forwarded to the United States Department tion of the proposal could be beneficial to the of Justice for its consideration, and notice of State and its banking structure. receipt of the application was given to the Com­ Statutory considerations. Section 3(c) of the missioner of Banking for the Commonwealth of Act provides that the Board shall not approve Virginia. Time for filing comments and views an acquisition that would result in a monopoly, has expired and all those received have been or would be in furtherance of any combination or considered by the Board. conspiracy to monopolize or to attempt to monop­ It is hereby ordered, for the reasons set forth olize the business of banking in any part of the in the Board’s Statement of this date, that said United States. Nor may the Board approve any application be and hereby is denied. other proposed acquisition, the effect of which, Dated at Washington, D. C., this 18th day of in any section of the country, may be substan­ April, 1967. tially to lessen competition, or tend to create a monopoly, or which in any other manner would By order of the Board of Governors. be in restraint of trade, unles the Board finds that Voting for this action: Chairman Martin, and Gov­ the anticompetitive effects of the proposed transac­ ernors Robertson, Mitchell, and Brimmer. Voting tion are clearly outweighed in the public interest against this action. Governors Shepardson and Daane. Absent and not voting: Governor Maisel. by the probable effect of the transaction in meet­ (Signed) Merritt Sherman, ing the convenience and needs of the community Secretary. to be served. In each case the Board is required [seal] to take into consideration the financial and managerial resources and future prospects of the Statement bank holding company and the banks concerned, Allied Bankshares Corp., Norfolk, Virginia and the convenience and needs of the community (“Applicant”), has filed with the Board, pursuant to be served. to section 3(a)(1) of the Bank Holding Company Competitive effects of proposed transaction. Act of 1956 (“the Act”), an application for ap­ Virginia National serves 25 areas of southern and proval of action to become a bank holding com­ central Virginia. It operates primarily in the pany through the acquisition of more than 50 per Norfolk area where it has 23 offices and derives cent of the voting shares of Virginia National Bank, Norfolk, Virginia (“Virginia National”), 1 Unless otherwise noted, banking data are as of this date and of The Central National Bank of Richmond, and reflect mergers or acquisitions approved to date by the appropriate authorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 765 approximately one-half of its deposits and loans. competition between these two banks is sufficiently Its second most important source of business is minimal that its elimination by reason of the the Charlottesville area. Central National’s pri­ proposed affiliation would not alone preclude mary service area' encompasses the City of Rich­ approval of the proposal. On the other hand, the mond and the adjacent counties of Henrico and likelihood that substantial potential competition Chesterfield. The Norfolk and Richmond areas between the two banks would be precluded by are the localities of major importance to the pres­ their affiliation is a consideration that weighs ent application. Norfolk and Charlottesville are ap­ heavily in the Board’s decision in this matter. proximately 102 and 68 miles, respectively, from Virginia National and Central National are the the City of Richmond. The Virginia National office only two large banking organizations in Vir­ that is closest to a Central National office is in ginia that have offices in either the Richmond or Louisa, about 50 miles northwest of Richmond. Norfolk area but not in both. Based on a record Applicant asserts that each of the subject of Virginia National’s past history, particularly banks draws the major portion of its loans and its growth pattern, it is reasonable to expect that, IPC deposits from its own primary service area. though the applicaion herein be denied, that bank Applicant asserts also that about 25 per cent of will gain increased access to the Richmond market, Virginia National’s total loans are to companies either through the operation of offices resulting engaged in or dependent upon agriculture, and from merger with Richmond area banks, or that about one-half of its real estate loans are through affiliation with such area banks. Of the secured by farm lands. On the other hand, accord­ several alternative courses for expansion reasona­ ing to Applicant, Central National has no loans bly available to Virginia National, few, if any, secured by farm lands and about 17 per cent of have the anticompetitive potential of the present its loans are to companies in the construction proposal. On the contrary, some such alternatives industry, which type of loans represents less than could provide new and additional competition for 3 per cent of Virginia National’s total loans. The the banks in the area, stimulate significant competi­ aforestated differences in the banks’ respective tion between Virginia National and Central Na­ loan portfolios reflect a limitation on the extent tional, and increase the number of sizable banking to which they presently compete for this type alternatives available to the businesses located of business. there. Both banks operate trust departments. While Regarding Central National’s expressed desire Central National derives about 3.5 per cent of its to expand its operations beyond its present serv­ trust business from Virginia National’s primary ice area, the Board is of the opinion that the service area, the latter bank’s trust business is bank’s size, sound financial condition, and staff stated to be derived solely from its own service of experienced and capable officers enable it, if it area. so desires, to expand its sphere of operations Virginia National’s position as the largest bank beyond the Richmond area. It is noted that at in Norfolk, and in the State, and Central Na­ this time Central National has approximately $18 tional’s position as the fourth largest bank in a million of deposits that are derived from outside Reserve City have contributed to the success of the Richmond area. While Central National’s first both banks as principal correspondents for other preference with regard to expansion is the subject banks in the State. About 6 per cent of Central proposal, denial thereof does not foreclose other National’s deposits, and 3 per cent of Virginia reasonable methods of expansion. Such other National’s, represent interbank balances. Competi­ methods could have, in the Board’s judgment, tion between the proposed affiliates for corre­ the virtue of extending Central National’s trade spondent accounts would be sharply reduced or area toward and into that of Virginia National, eliminated by consummation of Applicant’s pro­ while at the same time increasing competition be­ posal. tween the two banks. It is the Board’s opinion that the existing It appears that consummation of the proposed affiliation would have little effect on competition 2 The area from which the bank draws at least 75 per cent of in the areas principally served by Virginia Na­ its deposits of individuals, partnerships, and corporations (“IPC deposits”). tional. More significant would be the impact on Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

766 FEDERAL RESERVE BULLETIN • MAY 1967 Central National’s competitors. The record shows finds that the financial condition of the two banks that Central National’s three largest Richmond involved in the proposal herein is generally satis­ competitors operate in other areas of the State, factory, their prospects are good, and their man­ including, with respect to two of them, the Nor­ agements experienced and well qualified. It is folk area. The Board concurs in Applicant’s asser­ reasonable to conclude that the banks, whether tion that the proposed affiliation would place operating as subsidiaries of Applicant or independ­ Central National more immediately in a stronger ently, will continue their records of sound opera­ competitive position vis-a-vis these three Rich­ tions. Applicant has no financial or operating mond competitors than would be the case were history. Its pro forma financial condition, pro­ Central National to continue under its present posed management, and prospects are considered form of ownership. Applicant’s acquisition of Cen­ generally satisfactory. The evidence relating to the tral National would afford that bank affiliate out­ banking factors is consistent with approval of the lets in other parts of the State, particularly in the application but offers no significant weight in favor Norfolk area. While Applicant’s proposal affords thereof. the most immediate and certain method for Cen­ Convenience and needs of the community in­ tral National's expansion, as earlier mentioned, volved. Applicant asserts that establishment of the there appears to be no question but that Central proposad bank holding company would enable National could, if it desired, expand its scope of Central National to provide new and expanded operation successfully beyond the Richmond area services to the Richmond community and would by action other than affiliation with a $530 million enable the two proposed subsidiaries to compete institution. Any other method would reasonably more effectively with other large Virginia banks be calculated to have less impact on Central’s and out-of-State banks in providing wholesale six smaller Richmond competitors, four of which banking services. Considering the size and scope have total deposits of $10 million or less. of operations of the two proposed subsidiary banks At the present time, the 10 largest banking and the general nature of banking services availa­ organizations in Virginia control 63 per cent of ble in their respective trade areas, any benefits the total deposits of all banks in the State. Were that might follow upon consummation of Appli­ control of Virginia National’s deposits of $530 cant's proposal would appear to inure principally million to be combined with those of Central’s to Central National and its customers. In the $157 million, the number of controlling institu­ Board’s judgment, the record before it does not tions would be reduced to nine, thus further contain convincing evidence that the major bank­ compacting an existing heavy concentration of con­ ing requirements of the areas involved are not trol of deposits and banking offices. Any such now being reasonably satisfied. Further, the afore­ increase in concentration, in the light of the exist­ mentioned benefits reasonably anticipated to be ing situation, must be viewed as significant. While realized by Central National and its customers alone perhaps not decisive in this case, when are, in the Board’s judgment, insufficiently substan­ viewed with the additional adverse considerations tial to “clearly outweigh” the anticompetitive im­ above mentioned, such increase in concentration pact of the proposal as hereinabove described. is viewed as having a substantially adverse impact Summary and conclusion. On the basis of all upon the continued development of a healthy relevant facts contained in the record, and in the competitive banking structure in Virginia. light of the factors set forth in section 3(c) of On the basis of the foregoing considerations the Act, it is the Board’s judgment that the pro­ and the facts of record, it is the Board’s judg­ posed transaction would have anticompetitive ef­ ment that, absent evidence of benefit to the com­ fects that are not clearly outweighed in the public munities affected of a measure clearly outweigh­ interest by the probable effect of the transaction ing the anticompetitive consequences foreseen in in meeting the convenience and needs of the Applicant’s proposal, the application should be community to be served. Accordingly, it is con­ denied. cluded that the proposed affiliation would not be Financial and managerial resources and future in the public interest, and that the application prospects. On the basis of the record, the Board should be denied. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 767 Dissenting Statement of would simultaneously permit Central National to Governors Shepardson and Daane compete more vigorously and successfully in the Richmond area and provide it with an affiliate The majority’s action in denying the application relationship enabling it to compete elsewhere in of Allied Bankshares Corp, is premised on numer­ the State, most importantly in the Norfolk area, ous assumptions and conclusions that, in our where its three largest Richmond competitors judgment, have no basis in fact nor reasonable either have offices or an affiliated organization. likelihood in prospect. The Board concedes that While approval of this application would in­ present competition between Virginia National and crease somewhat the existing concentration of Central National is virtually nonexistent, but con­ banking resources in the ten largest banking or­ cludes that the amount of potential competition ganizations in the State—in itself an undesirable between the two institutions that would be fore­ consequence—we believe that the strengthening closed by this proposal is sufficiently great as to of Central National’s competitive position in the require denial of the application. The latter con­ Richmond area, with the resulting better competi­ clusion seems inconsistent with the former and, tive balance among the four large Richmond in our view, has no firm basis in fact or reason. banks, constitutes a consideration arguing for The same circumstances that have limited competi­ approval. tion between the two banks to date, namely, the In view of our finding that the proposed affilia­ distances separating their offices, the differences tion lacks any substantial anticompetitive effects in the nature of the services offered by each, and and could, in fact, enhance competition in Rich­ the deliberately localized nature of Central Na­ mond and the State of Virginia, we believe that tional’s operations, also would inhibit development the institutions involved should be permitted to of any substantial future competition between take the action that, following extended study, the banks. There is no evidence in the record be­ each has determined would best serve the interests fore the Board of any past effort or plans by of the institutions involved and the public served Central National, other than the present proposal, by them, a determination in which we concur. to extend its sphere of competition in any meaning­ Substitution by this Board of assumed facts and ful degree beyond the Richmond area so that the conjectural conclusions for reasoned determina­ Board’s conclusion as to this possibility can again tions is not, in our judgment, in the public interest. only be regarded as a dubious assumption. We believe approval of the application would It is with respect to the Richmond area that serve such interest. Central National’s competitive position would be measurably improved under this proposal and GENEVA SHAREHOLDERS, INC., could serve to stimulate further the competition WARSAW, NEW YORK among the largest banks in the community. It In the matter of the application of Geneva could serve to accomplish immediately what the Shareholders, Inc., Warsaw, New York, for ap­ majority of the Board conjecture may happen proval of action to become a bank holding com­ some other way in the future, namely, the pany through the acquisition of the voting shares strengthening of competition and provision of of Wyoming County Bank and Trust Company, better service to businesses in the locality. Serv­ Warsaw, New York, ices offered by Central National would be ex­ panded and improved as a result of the proposal Order Approving Application Under and consequently customer needs would be better Bank Holding Company Act served. Presently, Central National is the only There has come before the Board of Governors, large bank in Richmond that does not have sig­ pursuant to section 3(a) of the Bank Holding nificant representation in other areas of the State. Company Act of 1956 (12 U.S.C. 1842(a)), As of the latest date for which pertinent data and section 222.4(a) of Federal Reserve Regula­ are available, Central National’s share of deposits tion Y (12 CFR 222.4(a)), an application by in its primary service area has decreased signifi­ Geneva Shareholders, Inc., Warsaw, New York, cantly vis-a-vis all other banks in Richmond. for the Board’s prior approval of action whereby The proposed affiliation with Virginia National Applicant would become a bank holding company Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

768 FEDERAL RESERVE BULLETIN • MAY 1967 through the acquisition of 80 per cent or more company through the acquisition of not less than of the outstanding voting shares of Wyoming 80 per cent of the voting shares of Wyoming County Bank and Trust Company, Warsaw, New County Bank and Trust Company, Warsaw, New York. York (“Wyoming Bank"). Applicant is a ma­ As required by section 3(b) of the Act, notice jority-owned subsidiary of Financial Institutions, of receipt of the application was given to, and Inc., Warsaw (“Financial”), a registered bank views and recommendation requested of, the holding company, which is presently the owner Superintendent of Banks of the State of New York. of 94 per cent of the voting stock of Wyoming The Superintendent made no recommendation on Bank, the subject of this application. Financial the application. However, as discussed in the also owns more than 25 per cent of the voting Statement accompanying this Order, the New stock of Pavilion State Bank, Pavilion, New York. York State Banking Board advised this Board Upon consummation of Applicant’s proposal that, following a favorable recommendation of Financial would continue to have the status of a the Superintendent, the Banking Board had ap­ bank holding company under the Act through proved an application filed by Geneva Share­ its direct and indirect ownership of more than 25 holders, Inc., pursuant to the New York Banking per cent of the stock of more than two banks. Law involving the same proposal submitted to this Applicant presently owns 97 per cent of the out­ Board. standing voting shares of The National Bank of Notice of receipt of the application was pub­ Geneva, Geneva, New York. Its acquisition of lished in the Federal Register on November 30, Wyoming Bank would thus constitute it a bank 1966 (31 Federal Register 15040), which provided holding company under the Act. In effect, there­ an opportunity for interested persons to submit fore, the application contemplates a corporate comments and views with respect to the proposed reorganization pursuant to which direct majority acquisition. A copy of the application was for­ ownership of Wyoming Bank would be transferred warded to the Department of Justice for its con­ from Financial to its subsidiary, Applicant. sideration. Time for filing such comments and The record reflects that Applicant has au­ views has expired and all those received have thorized an outstanding but a single class of been considered by the Board. common stock, while Financial has, in addition It is hereby ordered, for the reasons set forth to common stock, a substantial amount of pre­ in the Board’s Statement of this date, that said ferred stock outstanding. Applicant has stated, application be and hereby is approved, provided and the Superintendent of Banks of the State of that the acquisition so approved shall not be New York in a written recommendation on Appli­ consummated (a) before the thirtieth calendar day cant’s proposal, hereafter discussed, has concluded, following the date of this Order or (b) later that existing rights of Financial’s preferred stock­ than three months after the date of the Order. holders will not be affected by the reorganization Dated at Washington, D. C., this 25th day of contemplated by this proposal. April, 1967. Views and recommendation of the supervisory authority. As required by section 3(b) of the Act, By order of the Board of Governors. notice of receipt of the application was given to, Voting for this action: Chairman Martin, and Gov­ and views and recommendation requested of, the ernors Robertson, Shepardson, Mitchell, Daane, Superintendent of Banks of the State of New York. Maisel, and Brimmer. Applicant had filed with the New York State (Signed) Merritt Sherman, Banking Board, pursuant to Article III-A of the Secretory. New York Banking Law, an application for ap­ [seal] proval involving the same proposal. The Superin­ Statement tendent, being required by State law to make a Geneva Shareholders, Inc., Warsaw, New York recommendation to the Banking Board on that (“Applicant”), has filed with the Board, pursuant application, recommended favorably, and the ap­ to section 3(a)(1) of the Bank Holding Com­ plication was approved by the Banking Board. A pany Act of 1956 (“the Act”), an application for copy of the Superintendent’s favorable written prior approval of action to become a bank holding recommendation was transmitted to this Board. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 769 Statutory considerations. Section 3(c) of the material competitive impact upon this proposal, Act provides that the Board shall not approve an the Board concludes that the convenience, needs, acquisition that would result in a monopoly, or and welfare of the communities and areas served would be in furtherance of any combination or by the banks that would constitute Applicant’s conspiracy to monopolize or to attempt to mo­ system would not be materially affected. Appro­ nopolize the business of banking in any part val of this application would not change the ability of the United States. Nor may the Board approve of either The National Bank of Geneva or Wyo­ any other proposed acquisition, the effect of which, ming Bank to serve the public in their respective in any section of the country, may be substantially areas. to lessen competition, or tend to create a mo­ Conclusion. On the basis of all the relevant nopoly, or which in any other manner would be facts contained in the record, and in the light of in restraint of trade, unless the Board finds that the factors set forth in section 3(c) of the Act, the anticompetitive effects of the proposed transac­ it is the Board’s judgment that the proposed tion are clearly outweighed in the public interest transaction would be consistent with the public by the probable effect of the transaction in meet­ interest and that the application should be ap­ ing the convenience and needs of the community proved. to be served. In each case the Board is required to take into consideration the financial and man­ BT NEW YORK CORPORATION, SUFFERN, agerial resources and future prospects of the bank NEW YORK holding company and the banks concerned, and In the matter of the application of BT New the convenience and needs of the community to York Corporation, Suffern, New York, for ap­ be served. proval of acquisition of 80 per cent or more of Competitive effects of proposed transaction. the voting shares of Liberty National Bank and Inasmuch as the proposed acquisition involves, Trust Company, Buffalo, New York. essentially, a reorganization of units within a hold­ ing company system, and reflects neither expan­ Order Denying Application Under sion of that system nor any significant change Bank Holding Company Act in the character of the system’s banking facilities, There has come before the Board of Governors, the Board concludes that the proposed acquisition pursuant to section 3(a) of the Bank Holding would not alter existing banking competition, nor Company Act of 1956 (12 U.S.C. 1842(a)), and affect potential competition. section 222.4(a) of Federal Reserve Regulation Financial and managerial resources and future Y (12 CFR 222.4(a)), an application by BT prospects. Applicant was organized in 1932, and New York Corporation, Suffern, New York, for at that time acquired The National Bank of the Board’s prior approval of the acquisition of Geneva. Both organizations have sound operating 80 per cent or more of the outstanding voting records and financial conditions. Wyoming Bank, shares of Liberty National Bank and Trust Com­ opened in 1913, is considered to be financially pany, Buffalo, New York. sound and well operated. Applicant’s management, As required by section 3(b) of the Act, the essentially the same as the managements of The Board gave written notice of receipt of the appli­ National Bank of Geneva and Wyoming Bank, cation to the Comptroller of the Currency and is considered to be capable and experienced. The requested his views and recommendation. The prospects of Applicant, dependent upon those of Comptroller recommended approval. the banks involved, are deemed favorable. Wyo­ As discussed in the Statement accompanying ming Bank’s prospects are considered favorable this Order, the New York State Banking Board either as a subsidiary of Financial or of Applicant. advised this Board of its action, following a Considerations relating to the banking factors recommendation of the New York State Superin­ are, therefore, viewed as consistent with approval tendent of Banks, approving an application re­ of the application. lating to the same transaction pursuant to the Convenience and needs of the areas involved. New York Banking Law. For the reasons given above relating to the Notice of receipt of the application was pub­ Board’s conclusions regarding the absence of any lished in the Federal Register on December 3, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

770 FEDERAL RESERVE BULLETIN • MAY 1967 1966 (31 Federal Register 15205), which pro­ on the proposal to the Banking Board, and trans­ vided an opportunity for interested persons to mitted a copy thereof to the Board of Governors. submit comments and views with respect to the The Superintendent recommended approval and proposed acquisition. A copy of the application on February 1, 1967, the Banking Board approved was forwarded to the United States Department the application. of Justice for its consideration. Time for filing Statutory considerations. Section 3(c) of the comments and views has expired and all those Act provides that the Board shall not approve received have been considered by the Board. an acquisition that would result in a monopoly It is hereby ordered, for the reasons set forth or would be in furtherance of any combination or in the Board’s Statement of this date, that said conspiracy to monopolize or to attempt to monop­ application be and hereby is denied. olize the business of banking in any part of the Dated at Washington, D. C., this 4th day of United States. Nor may the Board approve any May, 1967. other proposed acquisition, the effect of which, in any section of the country, may be substan­ By order of the Board of Governors. tially to lessen competition, or to tend to create Voting for this action; Unanimous, with all members a monopoly, or which in any other manner would present. Governor Sherrill was not a member of the be in restraint of trade, unless the Board finds Board on the date of the Board’s decision. that the anticompetitive effects of the transaction (Signed) Merritt Sherman, are clearly outweighed in the public interest by Secretary. the probable effect of the transaction in meeting [seal] the convenience and needs of the community to Statement be served. In each case, the Board is required to BT New York Corporation, Suffern, New York take into consideration the financial and mana­ (“Applicant”), a registered bank holding com­ gerial resources and future prospects of the bank pany, has applied to the Board of Governors, holding company and the banks concerned, and pursuant to section 3(a) of the Bank Holding the convenience and needs of the community to Company Act of 1956, as amended (“the Act”), be served. for prior aproval of the acquisition of 80 per cent Competitive effect of proposed transaction. or more of the outstanding voting shares of Applicant is presently the sixth largest commer­ Liberty National Bank and Trust Company, cial banking organization (branch banking or­ Buffalo, New York (“Liberty National”). ganizations and bank holding companies) in New Applicant began operations on May 31, 1966, York State and the State’s largest bank holding with the acquisition of four banking subsidiaries, company, accounting for approximately 7 per whose 88 banking offices held total deposits of cent of the deposits held by all commercial banks $4,742 billion at June 30, 1966.1 Liberty Na­ in the State. Consummation of the proposed tional, with deposits of $341 million, is the transaction would increase this State-wide con­ third largest commercial bank in Buffalo and centration only slightly. New York State’s Ninth Banking District. Applicant’s largest subsidiary bank, Bankers Views and recommendation of supervisory Trust Company of New York City, has deposits authority. As required by section 3(b) of the Act, of $4.5 billion. Its three other subsidiaries, First notice of receipt of the application was given to, Trust Company of Albany (deposits $128 mil­ and views and recommendation requested of, the lion), First State Bank of Spring Valley (deposits Comptroller of the Currency. The Comptroller $44 million), and Fallkill Bank and Trust Com­ recommended approval of the application. pany, Poughkeepsie (deposits $15 million), all In accordance with the requirements of Article are headquartered in the eastern part of New York III-A of the New York Banking Law, Applicant State. First Trust Company is located in the had filed with the New York State Banking Board State’s Fourth Banking District; First State Bank an application involving the same proposal. Pur­ and Fallkill Bank are located in the Third Bank­ suant to the State law, the New York Superin­ ing District. The closest office of any of these tendent of Banks submitted his recommendation banks is over 200 miles from the nearest office of Liberty National. 1 All banking data are as of this date, unless otherwise noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 771 Liberty National, the principal office of which significant than the IPC deposit overlap. Simi­ is located in Buffalo, operates 34 offices and holds larly insubstantial is the IPC deposit overlap total deposits of $341 million. It is the third between Liberty National and the other sub­ largest commercial bank in Buffalo, and in the sidiaries of Applicant. Elimination of existing Ninth Banking District. Liberty National has 28 competition between and among Applicant’s sub­ offices in the Buffalo Metropolitan Area, 27 of sidiaries and Liberty National, therefore, is not a which are located in Erie County, with 17 of significant consideration weighing against approval these located within the City of Buffalo. In addi­ of the application. tion, it has four offices in Chautauqua County and The proposal’s probable effect on potential com­ two in Genesee County. It has no offices in the petition, however, does present a severely adverse four other counties in the Ninth District. The consideration. Commercial banking in the Buffalo bulk of Liberty National’s business is derived Metropolitan Area is very highly concentrated. from the Buffalo Metropolitan Area (Erie and The three large Buffalo banks, Marine Midland Niagara Counties) and this is considered to be Trust Company of Western New York (“Marine its primary service area. Midland”), a subsidiary of The Marine Midland The City of Buffalo is the second largest city Corporation, Buffalo, a registered bank holding in the State; the Buffalo Metropolitan Area ranks company; Manufacturers and Traders Trust Com­ second among the seven metropolitan areas in the pany (“M & T”); and Liberty National, combined, State in population and employment, being nearly hold over 95 per cent of the total of all deposits twice as populous as the next ranking area. Erie held by the nine commercial banks headquartered County, in which the City of Buffalo is located, in the Buffalo Metropolitan Area (Marine Mid­ is the dominant county in the Ninth Banking land and M&T account for 80 per cent of such District containing about 63 per cent of the deposits). Of the 168 commercial banking offices District’s total population. Niagara County, with in the Area, all but 13 are offices of one of these a population exceeding one quarter million, lies three banks. north of Erie County. The City of Buffalo, to­ Applicant concedes the existence of this high gether with the City of Niagara Falls, forms the degree of concentration by asserting that “Buffalo industrial and commercial core of the metropoli­ . . . has the highest concentration of commercial tan area. Buffalo is the Nation’s leading center banking deposits of any city of its size in the for flour milling and is an important producer of United States.” Applicant, however, contends that animal feed. Its manufacturing industries include its proposal will promote deconcentration by light and heavy machinery, steel and pig iron, strengthening the ability of Liberty National to fabricated metal products, automobile parts, compete with its two larger rivals. The Board rubber tires, and mechanical rubber goods and views as limited both the probable impact on cellulose film. Liberty National’s larger competitors, and the The record indicates that the degree of com­ benefits to the public, from a greater statistical petition presently existing between Applicant and equalization in the overall market shares held by Liberty National is less than might ordinarily be the three largest banks. The very largest customers expected in view of the national and international in the Buffalo area would be the exclusive re­ scope of Bankers Trust Company’s business and cipients of any real benefit; and the significance the commercial significance of the Buffalo area. of the benefit to these customers is lessened by Approximately $2 million (.7 per cent) of Liberty the fact that they presently have, and make use National’s deposit accounts of individuals, part­ of, access to numerous non-local State and nation­ nerships, and corporations (“IPC deposits”) wide sources of bank service. originate in the New York Metropolitan Area Regarding Liberty National’s ability to com­ (the primary service area of Bankers Trust Com­ pete effectively without the proposed affiliation, pany), as compared with $753,000 (.02 per cent) the record before the Board does not present of Bankers Trust Company’s IPC deposits which Liberty National as a weak and ineffectual com­ originate in the Buffalo Metropolitan Area petitor unable to exert any impact on the market. (Liberty National’s primary service area). Over­ On the contrary, the record indicates that Liberty lap of loans or trust accounts appears no more National is a most aggressive and able competitor. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

772 FEDERAL RESERVE BULLETIN • MAY 1967 During the ten-year period 1956-1965, its share smaller organization, Applicant is under no such of Ninth District deposits increased from 9.4 per handicap. Should Applicant seek to implement the cent to 13.2 per cent. This represents the best desire manifested by the present application for performance of any bank in the Ninth District. affiliation with a Ninth District bank through Although the largest part of this growth resulted some other less anticompetitive transaction, such from mergers, the facts indicate that, even aside course remains open to it. from the growth directly attributable to mergers, Another aspect of potential competition to be Liberty National more than held its own in com­ considered is the possibility that Liberty National, parison with other banks in the District, including if the application were to be denied, might itself Marine Midland and M&T. Excluding growth re­ serve as the lead bank in a new holding com­ sulting from mergers involving the three banks, pany, thereby enabling it to extend its competitive Liberty National’s share of District deposits still influence outside the Buffalo area and the Ninth increased by .1 per cent in the period from year­ Banking District and into areas where it would end 1955 to year-end 1965; shares held by Marine be in competition with Applicant’s affiliates. In and M&T each declined by .2 per cent over the the Superintendent’s recommendation to the State same period. Overall, Liberty National’s deposits Banking Board, he stated, and the Board agrees, increased by 138 per cent during the last ten years; that “Liberty clearly has the potential to become those of Marine and M&T each increased by either the lead bank in a regional bank holding about 78 per cent in the same period. Further company ... or a participant with other banks evidence of Liberty National’s competitive ability ... in an upstate bank holding company. . . .” is the fact that, in addition to the ten offices which There are a very limited number of unaffiliated Liberty National has acquired through merger, banks with over $100 million in deposits in the it has opened seven de novo branches since 1956. upstate banking districts. Liberty National is the The Board’s concern has earlier been noted with fourth largest of these, and the second largest in respect to the extent to which the banking re­ the entire Ninth Banking District. Affiliation with sources in the Buffalo Metropolitan Area are Applicant would preclude the possibility of a presently concentrated in a few large banking future affiliation whereby Liberty National could organizations. The proposed acquisition of a large offer additional competition, for example, to and aggressive institution, such as Liberty Na­ banks in the Fourth Banking District, where tional, by the sixth largest banking organization Applicant is presently represented by its affiliate, in the State would not, in the Board’s judgment, First Trust Company of Albany. Such form of produce any meaningful deconcentration in Buf­ additional competition could, in turn, result in a falo or elsewhere in New York State. Consumma­ measurable degree of deconcentration of control tion of the proposed affiliation can reasonably be of banking resources within the upstate banking anticipated to stifle any incentive for entry of markets. meaningful competition into this area by institu­ Summarizing the effect of the proposed acquisi­ tions unaffiliated with organizations of or near tion on competition, it is the Board’s judgment Applicant’s size. that approval of the application is by no means In the Board’s judgment, Applicant’s acquisition Liberty National’s only avenue of continued of the second largest independent bank in Buffalo effective competition in the Buffalo area or of and the Ninth District is not the only reasonable expansion of its sphere of effective operations both course available to it for growth and expansion within and without the Ninth District; nor is this in this area. Applicant’s resources and the scope proposal the only reasonable means available to of its activities are presently such as to permit it, Applicant for gaining access to the Ninth District at any time it finds it desirable to do so, to expand banking market. Approval of this transaction, on its operation in the Buffalo area, particularly as the other hand, would preclude the possibility of they relate to the requirements of large businesses Liberty National’s development as a meaningful which Applicant states the proposed transaction alternative competitor in other areas of the State. is designed to serve. While it could be argued that Further, it would eliminate significant potential affiliation with a large existing institution is the competition between Applicant’s subsidiaries and only feasible method of meaningful entry for a Liberty National in the Buffalo Metropolitan Area. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 773 the Ninth Banking District, and other upstate ment, and prospects were found to be satisfac­ areas. Finally, consummation of Applicant’s pro­ tory, on a projected basis, when its formation was posal would have, in the Board’s judgment, a approved by the Board in April 1966 and there significantly adverse impact on Liberty National’s is no evidence that unfavorable conditions have smaller competitors, with respect to which Liberty developed during its short operating history. National presently maintains a significant size Liberty National has a history of sound opera­ advantage. tions and growth. Its management is experienced Convenience and needs of the area involved. and in all respects competent. Its prospects, Among the benefits asserted by Applicant to re­ whether operating independently or as an affiliate sult from consummation of its proposal, the of Applicant, are considered satisfactory. following are the principal such benefits: Liberty The banking factors as they pertain to the National would have an available source of capi­ instant application, while consistent with approval, tal funds and advice regarding asset management; offer little affirmative support therefor. In this Liberty National would be more able to meet regard, the potential for strengthening capital and demands for larger-sized loans, thus enabling it to improving the bank’s prospects that Applicant compete more effectively for the business of, and asserts the proposed holding company affiliation to serve, the larger industrial firms in the Buffalo would afford is a consideration almost entirely area; and Bankers Trust Company would make offset by the ability which an institution of the available to Liberty National and its customers a size of Liberty National has for generating such full range of money market and wholesale bank­ accomplishments from within. ing and trust facilities, including computer and Conclusion. On the basis of all relevant facts international banking services. contained in the record, and in the light of the There is every reason to believe that Liberty factors set forth in section 3(c) of the Act, it is National would be assured of assistance in these the Board’s judgment that Applicant’s proposal areas from the holding company and/or Bankers may have the effect of substantially lessening com­ Trust Company. As related to the convenience petition and that the anticompetitive effects of the and needs of the banking public in the Buffalo transacion are not clearly outweighed in the pub­ area, however, there is no evidence of major lic interest by any probable effect of the trans­ banking needs presently going unserved. A full action in meeting the convenience and needs of range of banking services is presently offered by the community to be served. Accordingly, the at least one local bank, in almost full measure by application should be denied. two local banks, and in some measure by three Concurring Statement of Governor Mitchell or more local banks. In addition, New York City banks and subsidiaries of regional or New York I concur in the Board’s denial action in this City-based holding companies must be regarded case and in its reasons supporting that action. It as reasonably convenient alternative sources for is my opinion, however, that the Board’s re­ certain major banking services. sponsibility under the statute to deal with what Bearing negatively on the convenience and it calls a “high degree of concentration” has not needs considerations is the fact, conceded by been discharged. It is not enough to deny this Applicant, that if the transaction were consum­ application and to passively deplore the lack of mated Liberty National’s customers would face a competitive alternatives in Buffalo and the Ninth reduction in the number of banking alternatives Banking District. In this case, the Board could, presently available to them in New York City and in my opinion should, make known courses through Liberty National’s correspondent relation­ of action that, if pursued by an applicant, could ships. On balance, the Board concludes that con­ meet with supervisory approval because of their siderations bearing on the factor of convenience pro-competitive implications. and needs of the area involved, while consistent While no bank supervisory authority can with approval of the application, lend doubtful reasonably be expected to give “prior clearance” weight toward such approval. to a hypothetical proposal, it is not unreasonable Financial and managerial resources and pros­ to expect that such authority should specify, and pects. Applicant’s financial condition, manage­ even encourage, a course of banking expansion Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

774 FEDERAL RESERVE BULLETIN • MAY 1967 that is reasonably calculated to serve, simulta­ ing Company Act of 1956 (12 U.S.C. 1842(a) neously, the business requirements of the applying (3)) and section 222.4(a) of Federal Reserve institution and the public interest. Regulation Y (12 CFR 222.4(a)), an applica­ In denying BT New York Corporation’s appli­ tion by First Wisconsin Bankshares Corporation, cation, the Board concluded that Applicant’s ac­ Milwaukee, Wisconsin, a registered bank hold­ quisition of Liberty National “would not . . . ing company, for the Board’s prior approval of produce any meaningful deconcentration” in the the acquisition of 80 per cent or more of the Buffalo Metropolitan Area. An obvious alterna­ voting shares to be issued by Mequon National tive leading to less concentration in Buffalo would Bank, Mequon, Wisconsin, a proposed new bank. be the de novo establishment under Applicant’s As required by section 3(b) of the Act, the sponsorship of a banking institution in the area, Board notified the Comptroller of the Currency followed by Applicant’s acquisition of the new of the application and requested his views and institution pursuant to approval of this Board. recommendation. The Comptroller recommended This pattern of affiliate organization and subse­ approval. quent acquisition is a familiar one to this Board.1 Notice of receipt of the application was pub­ ft is one that Applicant, or any other institution lished in the Federal Register on February 15, in similar circumstances, must often necessarily 1967 (32 Federal Register 2915), which provided follow in order to avoid the anticompetitive con­ an opportunity for interested persons to submit sequences of expansion into communities where comments and views with respect to the proposal. concentration is already high. A copy of the application was forwarded to the In my opinion, the banking structure in Buffalo United States Department of Justice for its con­ is one in which a larger number of banking units sideration. Time for filing comments and views could be presumed to insure a more competitive has expired and all those received have been con­ environment—this is the thrust of the Board's sidered by the Board. characterization of the area as one of a “high It is hereby ordered, for the reasons set degree of concentration” and the Applicant’s forth in the Board’s Statement of this date, that assertion that “Buffalo has the highest concentra­ said application be and hereby is approved, pro­ tion of commercial banking deposits of any city vided that the acquisition so approved shall not of its size in the United States.” Public action be consummated (a) before the thirtieth calendar ought to be able to do something more than just day following the date of this Order or (b) later hold the line of concentration at this level. The than three months after the date of the Order, Board could, at a minimum, suggest the use of and that the Mequon National Bank shall be procedures it has approved on several occasions opened for business not later than six months and hope some corporate interest would respond after the date of this Order. in kind. Dated at Washington, D.C., this 8th day of FIRST WISCONSIN BANKSHARES May, 1967. CORPORATION, MILWAUKEE, WISCONSIN In the matter of the application of First Wis­ By order of the Board of Governors. consin Bankshares Corporation, Milwaukee, Voting for this action: Chairman Martin, and Gov­ Wisconsin, for approval of acquisition of 80 per ernors Robertson, Shepardson, Mitchell, Maisel, and Brimmer. Absent and not voting: Governor Daane. cent or more of the voting shares to be issued Governor Sherrill did not participate in the Board’s by Mequon National Bank, Mequon, Wisconsin, action in this matter. a proposed new bank. (Signed) Merritt Sherman, Order Approving Application Under Secretary. Bank Holding Company Act [seal] There has come before the Board of Governors, Statement pursuant to section 3(a)(3) of the Bank Hold- First Wisconsin Bankshares Corporation, Mil­ 1 See, e.g., Application of First Wisconsin Rankshares Corpo­ waukee, Wisconsin (“Applicant”), a registered ration, 50 Federal Reserve Bulletin 438 (1964); Application bank holding company, has filed with the Board, of Virginia Commonwealth Corporation, 52 Federal Reserve Bulletin 1165 (1966); Application of Marshall & I Isley Bank pursuant to section 3(a)(3) of the Bank Hold- Stock Corporation, 5 3 Federal Reserve Bulletin 3 80 (1967). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 775 ing Company Act of 1956 (12 U.S.C. 1842(a) counties, there are 62 banks with 91 offices hold­ (3)), an application for prior approval of the ing combined deposits of $2.4 billion. The three acquisition of 80 per cent or more of the voting bank holding companies operating in the MSMSA shares to be issued by Mequon National Bank, control 66 per cent of the area’s commercial bank Mequon, Wisconsin (“Bank”), a proposed new deposits. Applicant’s banks hold 34 per cent of bank. As of June 30, 1966, Applicant’s nine sub­ such deposits. While Applicant’s share of the sidiary banks held deposits of $1.1 billion1 and MSMSA bank deposits is substantial, assuming operated 25 offices. Bank, the proposed site of that Bank achieves the three-year deposits total which is in the City of Mequon, approximately of $3.9 million projected for it by Applicant, 15 miles from downtown Milwaukee, is expected Bank’s inclusion as part of Applicant’s system to have deposits of about $4 million after three would increase Applicant’s share of the MSMSA years of operation. deposits by only one-quarter of 1 per cent. The Views and recommendation of supervisory au­ actual impact on existing concentration would be thority. As required by section 3(b) of the Act, less than indicated by the foregoing figures since notice of the application was given to, and views a portion of Bank’s accounts can be expected to and recommendation requested of, the Comptrol­ be accounts transferred from Applicant’s lead ler of the Currency. The Comptroller recom­ bank, First Wisconsin National Bank of Milwau­ mended approval. kee. Statutory considerations. Section 3(c) of the Bank’s proposed primary service area,1 com­ Act provides that the Board shall not approve an monly known as “East Mequon” (population 5,­ acquisition that would result in a monopoly or 300), has never had, and does not now have, a would be in furtherance of any combination or bank. Nine banks located outside this area, rang­ conspiracy to monopolize or to attempt to mo­ ing in size from $799 to $13 million, compete nopolize the business of banking in any part of therein. Five of the nine banks are subsidiaries the United States. Nor may the Board approve a of bank holding companies—one is Applicant’s proposed acquisition, the effect of which, in any bank, and two each are subsidiaries of the two section of the country, may be substantially to other Milwaukee-based bank holding companies. lessen competition, or to tend to create a mo­ The four holding company banks that compete nopoly, or which in any other manner would be with Applicant’s large Milwaukee subsidiary will in restraint of trade, unless the Board finds that be affected by Applicant’s ownership of Bank the anticompetitive effects of the proposed transac­ only to the extent that there will result increased tion are clearly outweighed in the public interest competition for the business each may derive by the probable effect of the transaction in meet­ from the East Mequon area. ing the convenience and needs of the community The four independent banks that compete in to be served. In each case the Board is required to Bank’s proposed service area are well-established take into consideration the financial and man­ institutions with deposits ranging from $13 to $27 agerial resources and future prospects of the bank million. Of these, only the Thiensville State Bank holding company and the banks concerned, and ($13 million of deposits), situated four miles the convenience and needs of the community to west of Bank’s proposed site, is likely to be af­ be served. fected to any measurable degree by consummation Competitive effect of proposed transaction. Ap­ of Applicant’s proposal. It is estimated that the plicant is the largest of eight bank holding com­ Thiensville State Bank presently obtains nearly panies operating in the State of Wisconsin, with one-fourth of the deposits originating in Bank’s 17 per cent of total deposits and 3 per cent of the proposed service area, representing about 7 per banking offices in the State, and the largest bank­ cent of the Thiensville State Bank’s total deposits. ing organization in the State and in the Milwau­ Applicant’s ownership and operation of Bank may kee Standard Metropolitan Statistical Area be expected to result in Thiensville State Bank (“MSMSA”). Within the MSMSA, which is com­ losing some existing business originating in the posed of Milwaukee, Ozaukee, and Waukesha 1 The area from which it is estimated that Bank will obtain approximately 75 per cent of its deposits of individuals, partner­ 1 All banking data are of this date unless otherwise noted. ships, and corporations (“IPC deposits”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

776 FEDERAL RESERVE BULLETIN • MAY 1967 East Mequon area, and in its obtaining a lesser residential community. As earlier noted, Mequon share than at present of new business from that has never had a bank. It is one of but four cities area. However, in view of the size of the Thiens­ in the State of Wisconsin with a population over ville State Bank, the relatively small portion of 4,000 and no local bank. The Thiensville State its total business derived from the East Mequon Bank, as earlier stated, is the nearest bank now area and its record of growth in the face of exist­ available to East Mequon businesses and residents. ing competition from the Milwaukee area banks, Although East Mequon and Thiensville are con­ the Board concludes that consummation of Ap­ tiguous, they are separated by the Milwaukee plicant’s proposal will have no significant impact River, a circumstance that makes somewhat in­ on the Thiensville State Bank. convenient the Mequon community’s access to Regarding the effect of consummation of Ap­ the nearest existing banking facility. While the plicant’s proposal on Applicant’s existing subsid­ record reflects that the Milwaukee area banks, iary banks, inasmuch as the proposal involves including the Thiensville State Bank, are serving the acquisition of a new bank not yet opened for the major banking needs of the East Mequon business, no existing competition between it and community, it is readily apparent that establish­ Applicant’s present subsidiaries is involved. ment of Bank under Applicant’s ownership would Further, since Applicant states that Bank will result in a more convenient source of banking not be established if this application is denied, services to inhabitants of Bank’s designated serv­ the potential for future competition between Bank ice area, and that the broader range of services and Applicant’s subsidiary banks is not an issue. that would be made available would be of par­ In summary, it is the Board’s judgment that ticular benefit with respect to the commercial Applicant’s acquisition of Bank would not result development of East Mequon now under way. In in a monopoly or tend to create a monopoly or the Board’s judgment, the foregoing considera­ restrain trade in any other manner, nor would tions relating to the convenience and needs of such acquisition result is a substantial lessening the area involved weigh in favor of approval of of competition in any relevant area. Applicant’s proposal. Financial and managerial resources and future Conclusion. On the basis of all the relevant prospects. On the basis of the record presented, facts contained in the record, and in light of the including data reflecting Applicant’s sound opera­ factors set forth in section 3(c) of the Act, it tion as a holding company system since 1930, the is the Board's judgment that Applicant’s proposal Board views the financial resources, management, is in the public interest and that the application and future prospects of Applicant and its subsid­ should be approved. iary banks as satisfactory. Bank has no financial history. Its management would be composed of THE FIRST VIRGINIA CORPORATION, officers drawn from Applicant and Aplicant’s ARLINGTON, VIRGINIA banking subsidiaries, and its board of directors would be composed of residents of Mequon or In the matter of the application of the First contiguous communities, all of whom are success­ Virginia Corporation, Arlington, Virginia, for ful corporate executives and one of whom is a approval of the acquisition of 80 per cent or director of Applicant. It is reasonably concluded more of the outstanding voting shares of Cam­ that Bank’s management will be satisfactory. bria Bank, Incorporated, Christiansburg, Virginia. Bank’s initial capital appears adequate, and its projected earnings prospects reasonable. The Order Approving Application Under Board finds that the financial resources and man­ Bank Holding Company Act agement of Bank will be satisfactory, and its There has come before the Board of Governors, prospects under Applicant’s ownership would be pursuant to section 3(a)(3) of the Bank Holding favorable. Company Act of 1956 (12 U.S.C. 1842(a)(3)), Convenience and needs of the area involved. and section 222.4(a) of Federal Reserve Regula­ Bank’s proposed primary service area—East tion Y (12 CFR 222.4(a)), an application by The Mequon—appears to be a prosperous and growing First Virginia Corporation, Arlington, Virginia, a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 777 registered bank holding company, for the Board’s of June 30, 1966.1 Bank, which operates two offices approval of the acquisition of 80 per cent or more in Christiansburg, has deposits of $2.7 million. of the outsanding voting shares of Cambria Bank, yiews and recommendation of supervisory Incorporated, Christiansburg, Virginia. authority. As required by section 3(b) of the Act, As required by section 3(b) of the Act, notice the Board notified the Virginia Commissioner of of receipt of the application was given to the Vir­ Banking of receipt of the application and requested ginia Commissioner of Banking with a request for his views and recommendation thereon. The Com­ his views and recommendation. The Commissioner missioner expressed no objection to approval of advised that he had no objection to approval of the application. the application. Statutory factors. Section 3(c) of the Act pro­ Notice of receipt of the application was pub­ vides that the Board shall not approve an acquisi­ lished in the Federal Register on January 13, 1967 tion that would result in a monopoly, or be in (32 Federal Register 398), providing an oppor­ furtherance of any combination or conspiracy to tunity for submission of comments and views re­ monopolize or to attempt to monopolize the busi­ garding the proposed acquisition. A copy of the ness of banking in any part of the United States. application was forwarded to the Department of Nor may the Board approve a proposed acquisi­ Justice for its consideration. The time for filing tion, the effect of which, in any section of the such comments and views has expired and all those country, may be substantially to lessen competi­ received have been considered by the Board. tion, or tend to create a monopoly, or which in It is ordered, for the reasons set forth in the any other manner would be in restraint of trade, Board’s Statement of this date, that said applica­ unless the Board finds that the anticompetitive tion be and hereby is approved, provided that the effects of the proposed transaction are clearly out­ acquisition so approved shall not be consummated weighed in the public interest by the probable effect (a) before the thirtieth calendar day after the date of the transaction in meeting the convenience and of this Order or (b) later than three months after needs of the community to be served. In each case, the date of the Order. the Board is required to take into consideration Dated at Washington, D. C., this 9th day of the financial and managerial resources and future May, 1967. prospects of the bank holding company and the banks concerned, and the convenience and needs By order of the Board of Governors. of the community to be served. Voting for this action: Chairman Martin, and Gov­ Competitive effect of proposed transaction. ernors Robertson, Shepardson, Mitchell, Daane, Applicant, the third largest bank holding company Maisel, and Brimmer. Governor Sherrill did not par­ and sixth largest banking organization in Virginia, ticipate in the Board’s action in this matter. controls total deposits of $286 million, represent­ (Signed) Merritt Sherman, ing 5.6 per cent of the total deposits in the State. Secretary. Over 50 per cent of the latter deposits are con­ [seal] trolled by the seven largest banking organiza­ tions—four bank holding companies, including Statement Applicant, and three independent branch bank systems. Acquisition of Bank would increase by The First Virginia Corporation, Arlington, Vir­ .05 per cent Applicant’s share of the deposits held ginia (“Applicant”), a registered bank holding by all banks in the State. The share of those company, has applied to the Board of Governors, deposits controlled in the aggregate by the State’s pursuant to section 3(a)(3) of the Bank Holding seven largest organizations would be similarly Company Act of 1956 (12 U.S.C. 1842(a)(3)), increased. for prior approval of the acquisition of 80 per cent Bank’s main office is located in the town of or more of the outstanding voting shares of Christiansburg, which is 30 miles southwest of Cambria Bank, Incorporated, Christiansburg, Vir­ ginia (“Bank”). Applicant presently controls 12 1 Unless otherwise indicated, all banking data noted are banks, which operate 72 offices (including two of this date. Information with respect to Applicant gives effect to the acquisitions of Staunton Industrial Bank, Staun­ facilities), with total deposits of $286 million as ton, Virginia, and First Valley National Bank, Rich Creek, Virginia, which were consummated subsequent to June 30, 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

778 FEDERAL RESERVE BULLETIN • MAY 1967 Roanoke and the seat and commercial center of mated, would not lessen, but could intensify, Montgomery County. A branch office of Bank is competition. located outside the town limits about one and a In summary, the Board concludes, on the basis half miles from the main office. Bank’s primary of the record before it, that consummation of service area,2 wholly situated within Montgomery Applicant’s proposal would not result in a monop­ County, includes Christiansburg and the surround­ oly, or further any combination or conspiracy to ing rural area within an approximate three-mile monopolize or attempt to monopolize the business radius. of banking in any relevant area of the State; nor Applicant’s acquisition of Bank would represent would such consummation substantially lessen the initial entry of a bank holding company directly competition, tend to create a monopoly, or operate into Montgomery County. The nearest subsidiary in restraint of trade in any relevant area. bank of Applicant, Bank of New River Valley Financial and managerial resources and future (deposits of $6 million), is located in Radford, prospects. The financial conditions of Applicant about eight miles west of Bank. Although a pri­ and of its subsidiary banks are considered to be mary highway links Radford and Christiansburg, satisfactory. Applicant’s prospects, gauged princi­ the mountainous terrain between the towns presents pally in the light of the sound financial condition somewhat of a commercial and commutation bar­ of its subsidiary banks, arc favorable, as are those rier. This circumstance, and the fact that both of its banks. Management of Applicant and of its Bank and Bank of New River Valley are in com­ subsidiary banks is considered capable and experi­ petition with larger institutions, explain the lack enced, and in all respects satisfactory. of any significant competition between the two in Bank’s financial resources and condition appear their respective communities. The next two closest reasonably satisfactory, and its management quali­ offices to Christiansburg of one of Applicant’s fied and competent. However, additional personnel banks are 35 and 43 miles distant. According to are needed, particularly persons qualified to effect Applicant, neither derives business from the the service and growth potential of Bank’s branch Christiansburg area. office. It is the Board’s judgment that the employ­ Consideration of the effect of Applicant’s con­ ment advantages that Applicant can offer potential trol of Bank on non-affiliated competing banks in employees would assist Bank measurably in obtain­ the area does not warrant denial of the applica­ ing qualified personnel. Accordingly, while Bank’s tion. Bank has about 14 per cent of the deposits prospects under its present ownership appear held by Christiansburg banks. Bank’s two larger favorable, the Board believes that its prospects under Applicant’s ownership and operation would competitors in Christiansburg, The Bank of be improved. Accordingly, considerations bearing Christiansburg (deposits of $9.4 million) and The upon the banking factors are consistent with, and First National Bank of Christiansburg (deposits somewhat favor, approval of the application. of $7.2 million), together hold the remaining 86 Convenience and needs of the area involved. per cent of such deposits. The First National Ex­ Montgomery County, including Bank’s service change Bank of Virginia (deposits of $292 mil­ area, is primarily agriculturally oriented. In recent lion) and the National Bank of Blacksburg years, however, the general area of Christiansburg, (deposits of $11 million), with offices located, except for the Cambria section thereof where respectively, between six and seven miles from Bank’s main office is located, has experienced a Bank’s main office, draw business from Bank’s growth of light industry. This development has service area. been a principal factor in the increase in Christians­ Considering Bank’s size and the sizes and num­ burg’s population to its present 7,500, and to the ber of its competitors, and the fact that the pro­ growth to 25,000 of the population in Christians­ posed acquisition will not reduce the number of burg’s general trade area. A mountain ridge alternative sources of banking services, it is reason­ separates the Cambria section of Christiansburg ably seen that Applicant’s proposal, if consum- from its central business district. Cambria’s re­ sulting “separate community” posture offers con­ siderably less potential for economic growth than 2 Area from which Bank derives 80 per cent of its total of deposits of individuals, partnerships, and corporations (“IPC that indicated for the Christiansburg area generally. deposits”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 779 It is to the continued economic development of First National Exchange Bank of Virginia, the Christiansburg area, the direct assistance to Roanoke, Virginia, and Metropolitan National the Cambria section thereof, and the resulting Bank, Richmond, Virginia. growth in Bank that Applicant asserts its applica­ As required by section 3(b) of the Act, the tion is directed. While the evidence of record Board notified the Comptroller of the Currency reflects that the major banking needs of the of the application and requested his views and Christiansburg area are being served, it appears recommendation. The Comptroller made no that more convenient and improved services would recommendation on the proposal. be offered by Bank under Applicant’s ownership. Notice of receipt of the application was pub­ Among Applicant’s proposals, the following appear lished in the Federal Register on March 21, 1967 to offer a potential for public benefit: to establish (32 Federal Register 4326), which provided an a credit extension program at Bank’s branch office opportunity for interested persons to submit com­ —no loans are presently made there; to encourage ments and views with respect to the proposal. A and assist Bank in opening a branch office in copy of the application was forwarded to the Christiansburg’s business district; and to provide United States Department of Justice for its con­ direction and assistance with respect to the initia­ sideration. Time for filing comments and views tion of, or improvement in, specific operational has expired and all those received have been procedures and practices. In sum, Applicant’s pro­ considered by the Board. posal to develop Bank as a full-service institution It is hereby ordered, for the reasons set forth weighs, under the circumstances presented, in favor in the Board’s Statement of this date, that said of approval of the application. application be and hereby is approved, provided Conclusion. On the basis of all the relevant facts that the acquisition so approved shall not be contained in the record, and in light of the factors consummated (a) before the thirtieth calendar set forth in section 3(c) of the Act, it is the Board’s day following the date of this Order or (b) later judgment that the proposed transaction would be than three months after the date of the Order. in the public interest and that the application Dated at Washington, D. C., this 11th day of should be approved. May, 1967. By order of the Board of Governors. DOMINION BANKSHARES CORPORATION, ROANOKE, VIRGINIA Voting for this action: Chairman Martin, and Gover­ nors Robertson, Shepardson, Mitchell, Maisel, and In the matter of the application of Dominion Brimmer. Absent and not voting: Governor Daane. Bankshares Corporation, Roanoke, Virginia, for Governor Sherrill did not participate in the Board’s action in this matter. approval of action to become a bank holding com­ pany through the acquisition of more than 50 per (Signed) Merritt Sherman, cent of the outstanding voting shares of The First Secretary. National Exchange Bank of Virginia, Roanoke, [seal] Virginia, and Metropolitan National Bank, Rich­ Statement mond, Virginia. Dominion Bankshares Corporation, Roanoke, Virginia (“Applicant”), has filed with the Board, Order Approving Application Under pursuant to section 3(a)(1) of the Bank Holding Bank Holding Company Act Company Act of 1956, an application for approval There has come before the Board of Gover­ of action to become a bank holding company nors, pursuant to section 3(a)(1) of the Bank through the acquisition of more than 50 per cent Holding Company Act of 1956 (12 U.S.C. 1842 of the voting shares of The First National Ex­ (a)(1)), and section 222.4(a)(1) of Federal change Bank of Virginia, Roanoke, Virginia Reserve Regulation Y (12 CFR 222.4(a)(1)), (“First National”), and of Metropolitan National an application by Dominion Bankshares Corpora­ Bank, Richmond, Virginia (“Metropolitan”). As tion, Roanoke, Virginia, for the Board’s prior of December 31, 1966,1 First National, with 31 approval of action to become a bank holding offices and total deposits of $300 million, is the company through the acquisition of more than 50 fourth largest bank and the sixth largest banking per cent of the outstanding voting shares of The 1 Unless otherwise noted, banking data are as of this date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

780 FEDERAL RESERVE BULLETIN • MAY 1967 organization in Virginia in terms of total de­ areas, one of which is the City of Roanoke and posits. Metropolitan is located in downtown Rich­ portions of the four counties within a 25-mile mond, and has $11 million in deposits after l‘/2 radius of that city. This latter area is considered years of operation. It has but one office and is to be the area from which First National’s main eighth in size of the ten banks in Richmond. office and seven of its branch offices derive ap­ Views and recommendation of supervisory proximately 43 per cent of First National’s total authority. As required by section 3(b) of the Act, IPC deposits. Consummation of this proposal will notice of receipt of the application was given to, not, in the Board’s judgment, have any significant and views and recommendation requested of, the competitive consequences in First National’s Comptroller of the Currency. The Comptroller’s primary service area. Office acknowledged receipt of notice, but did not Metropolitan’s primary service area (the area respond with views and recommendation con­ from which it is estimated approximately 90 per cerning the subject application. cent of its total IPC deposits are derived) is the Statutory considerations. Section 3(c) of the City of Richmond, located 170 miles from Act provides that the Board shall not approve an Roanoke and about 130 miles from the closest acquisition that would result in a monopoly or office of First National. There are 10 banks lo­ would be in furtherance of any combination or cated in Richmond, the area that will be prin­ conspiracy to monopolize or to attempt to cipally affected by consummation of Applicant’s monopolize the business of banking in any part proposal. Of the 10 banks, four (including two of the United States. Nor may the Board approve holding company subsidiaries) control 91 per a proposed acquisition, the effect of which, in cent of the total deposits held by them; the two any section of the country, may be substantially largest banks hold 62 per cent of the deposits of to lessen competition, or tend to create a monop­ all banks in the city. It is reasonably foreseen that oly, or which in any other manner would be in Applicant’s entry into the Richmond banking restraint of trade, unless the Board finds that the market could effect a deconcentration in the exist­ anticompetitive effects of the proposed transaction ing control of banking resources, particularly are clearly outweighed in the public interest by with respect to the two large Richmond banks, the probable effect of the transaction in meeting one of which holds $535 million of deposits, and the convenience and needs of the community to the other, $341 million. be served. In each case the Board is required to Each of the proposed subsidiary banks derives take into consideration the financial and mana­ a substantial portion of its loans and IPC de­ gerial resources and future prospects of the bank posits from its own primary service area and only holding company and the banks concerned, and a negligible amount of Ioans and such deposits the convenience and needs of the community to from the primary service areas of the other bank. be served. With the exception of the City of Roanoke, First Competitive effect of proposed transaction. If National’s service areas are predominantly rural the subject proposal were consummated, Appli­ in nature, while Metropolitan serves an urban cant would be the third largest of the five bank and commercial territory. While there is little holding companies operating in Virginia. Its con­ significant variation between the deposit structures trol of .$311 million of deposits would rank it of the two banks, there is a wide difference in the fifth in size with respect to all banking organiza­ emphasis given to types of loans in the two banks. tions in the State. Applicant’s resulting share of Real estate loans are almost twice as large a deposits in the State would be but .2 per cent percentage of First National's total loan port­ greater than the 5.6 per cent of such total deposits folio as they are in the case of Metropolitan. On now controlled by First National. the other hand, commercial and industrial loans First National operates 31 offices in 18 Virginia constitute a significantly larger portion of Metro­ localities, all of which are in the western and politan’s total loans than they do of First Na­ southwestern sections of Virginia. Its primary tional’s total loans. service area2 encompasses 14 separate service Although each of the subject banks conducts correspondent bank business (Metropolitan, on 3 The area from which it is estimated that First National derives 98 per cent of its deposits of individuals, partnerships, a very modest scale), the two banks do not carry and corporations (“IPC deposits”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 781 balances with each other nor do banks located Financial and managerial resources and future in the primary service area of one have balances prospects. Applicant has no financial or operating with the other institution. Metropolitan does not history. However, its pro forma financial con­ operate a trust department; First National is quite dition and its prospects are considered satisfac­ active in this field. The aforementioned distinctions tory in the light of the satisfactory financial in the emphasis that each bank gives to certain condition and prospects of First National and types of business, Metropolitan’s small size in Metropolitan. relation to First National, and the distance sepa­ Applicant’s management will be composed of rating the two institutions, explain the negligible directors and officers of the two proposed sub­ present competition between these two banks and, sidiary banks. The qualifications and experience in the Board’s judgment, indicate a lack of reason­ of their managements reasonably suggest that able likelihood that significant competition would Applicant’s management will be satisfactory and develop between them in the foreseeable future. that the banks, under Applicant’s control, will As earlier stated, approval of Applicant’s pro­ continue their records of sound operations. posal will have little effect on competition in the On the basis of the foregoing, the Board con­ areas primarily served by First National. Its cludes that considerations related to the banking potential as a state-wide competitor would be en­ factors are consistent with approval of the appli­ hanced, however, through its affiliation with cation. Metropolitan. In addition to the competition First Convenience and needs of the communities in­ National now offers within its service area to volved. There is nothing in the record from which state-wide banking organizations and large out- it can be concluded that the major banking needs of-state banks for large commercial and industrial of either the Roanoke or Richmond areas are not accounts, it will, by the proposed affiliation, be now being reasonably served. Applicant does not able to compete more effectively for this business. propose to alter the scope or nature of the services Competition among banks in Richmond should now offered by First National in its service area. be further enhanced by Metropolitan’s broadened However, with respect to the Richmond area, service potential. Its ability to handle, in con­ Applicant asserts that the proposed affiliation will junction with its Roanoke affiliate, larger lines of result in a broadening of the scope and nature of credit; its prospects as a full service correspondent services offered by Metropolitan, thus enabling bank; and its improved ability to more readily and that bank to serve better the Richmond community completely serve the banking requirements of the and to compete more ably with the larger Rich­ retail businesses and individuals in its service area mond banks. As earlier stated, Applicant proposes will enhance Metropolitan’s competitive position to broaden substantially Metropolitan’s commer­ vis-a-vis its larger competitors. With respect to cial loan services. Additionally, that bank will the two Richmond banks that are somewhat obtain fiduciary powers in order to serve, under smaller than Metropolitan, it may reasonably be the experienced guidance of First National, what assumed that, for those types of business for which appears to be an increasing demand for corporate they and Metropolitan now compete, Metropoli­ trust services in Richmond. First National is tan will gain some competitive advantage. How­ presently a major correspondent for nearly 100 ever, the total impact on these banks is not banks, many of which also maintain accounts reasonably expected to be such as to significantly with the larger Richmond banks. Applicant’s pro­ impede their growth and development. posal to make available to Metropolitan the ex­ Summarizing, the Board concludes, on the basis perience of First National’s correspondent bank of the record before it, that consummation of department can be expected to sharpen competi­ Applicant’s proposal would not result in a monop­ tion among Richmond banks for these corres­ oly, or further any combination or conspiracy to pondent accounts, as well as provide an additional monopolize or attempt to monopolize the business alternative for banks seeking such services. of banking in any relevant area of the State, nor In the Board’s judgment, the broader range of would such consummation substantially lessen services that will be available from and through competition, tend to create a monopoly, or operate Metropolitan, operating as an affiliate of First in restraint of trade in any relevant area. National under Applicant’s proposal, offers reason- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

782 FEDERAL RESERVE BULLETIN ■ MAY 1967 able assurance of public benefit, both with respect relevant facts contained in the record, and in the to additional and more convenient services, and light of the factors set forth in section 3(c) of the increased competition, as to weigh toward approval Act, it is the Board’s judgment that the proposed of the application. transaction would be in the public interest and Summary and conclusion. On the basis of all the that the application should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements MR. SHERRILL APPOINTED consultant to the Board, effective at the comple­ AS A MEMBER OF THE BOARD tion of his service as a member of the Board on On April 24, 1967, President Johnson sent to April 30, 1967. Mr. Shepardson will be available the Senate the nomination of William W. Sherrill to the Board for consultation on various questions of Texas as a Member of the Board of Governors. within the Board’s areas of responsibility, includ­ The nomination was confirmed without dissent ing in particular agricultural credit matters, with on April 26, and the President signed the com­ which he has long been closely identified. mission on April 27, 1967. Mr. Sherrill took the oath of office, administered by Chairman Martin CHANGES IN THE BOARD’S STAFF in the Board’s building, on May 1. Mr. Sherrill’s The Board of Governors has announced the ap­ wife, the former Sue Poer of Houston, Texas, and pointment of John H. Rhinehart as an Assistant their three daughters—Cynthia, Sandra, and Director of the Division of Data Processing, ef­ Suzanne—were present at the ceremony. fective May 15, 1967. Born on August 23, 1926, in Houston, Texas, Before joining the Board’s staff as an Opera­ Mr. Sherrill served in the Marine Corps during tions Research Analyst in September 1966, Mr. World War II and was wounded in action on Iwo Rhinehart was employed as a Technical Advisor Jima. After graduating with honors from the to the Joint War Games Agency, Office of the University of Houston in 1950, he attended the Joint Chiefs of Staff, Department of Defense. Be­ Harvard University Graduate School of Business fore that he had been associated both with RCA Administration from which he received in 1952 and with the Philco Division of Ford Motor Com­ an M.B.A. in Finance with distinction. pany in the design and development of automatic Mr. Sherrill began his business career with the data processing systems for global communica­ Southwestern Bell Telephone Company while at­ tions. tending the University of Houston. In 1954 he A native of Louisiana, Mr. Rhinehart graduated left the company to become the Administrator of from Tulane University in 1958 with a B.S. in ge­ Houston’s City Court System and to serve for a ology and worked the following year as a Re­ time as Civil Defense Administrative Officer. In search Technician for the Biophysics Program at 1956 he left the city government to enter private the University before joining RCA. industry as a business analyst and real estate de­ veloper. APPOINTMENT OF DIRECTOR In 1958 Mr. Sherrill became Houston’s City On April 25, 1967, the Board of Governors an­ Treasurer, Chief Administrative Officer, and nounced the appointment of Henry Cragg of Executive Assistant to the Mayor. In 1962 he Orlando, Florida, as a director of the Jacksonville again left the city government to become Presi­ Branch of the Federal Reserve Bank of Atlanta dent of the Homestead Bank of Houston and Ex­ for the unexpired portion of a term ending Decem­ ecutive Vice President of the Jamaica Corporation. ber 31, 1967. Mr. Cragg is Chairman of the In February 1966 Mr. Sherrill was appointed by Board and Chief Executive Officer of Minute President Johnson as a member of the Board of Maid Company in Orlando. As a director of the Directors of the Federal Deposit Insurance Jacksonville Branch he succeeds Mr. Douglas M. Corporation, in which capacity he was serving at Pratt, President, National City Lines, Inc., Tampa, the time of his appointment to the Board of Florida, who recently resigned. Governors. LETTER ON ACCOUNTING PRACTICES MR. SHEPARDSON APPOINTED A CONSULTANT Under date of May 16, 1967, each Federal Re­ TO THE BOARD The Board of Governors of the Federal Reserve serve Bank sent a letter regarding the accounting System appointed Charles N. Shepardson as a treatment of (1) profits and losses on sales of 783 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

784 FEDERAL RESERVE BULLETIN • MAY 1967 securities and (2) tax-exempt income to each VOLUNTARY FOREIGN CREDIT State member bank in its district. The Comp­ RESTRAINT PROGRAM troller of the Currency and the Federal Deposit U.S. commercial banks reduced their holdings of Insurance Corporation sent similar letters to na­ foreign loans and investments subject to the tional banks and insured nonmember banks, re­ voluntary foreign credit restraint program by $215 spectively. million during the first quarter of 1967. This The text of the letter sent by the Reserve Bank compares with a reduction of $285 million during Presidents follows: the same period in 1966, and an increase of about “A number of inquiries have been received by $350 million during the fourth quarter of 1966. the Federal Reserve and the other Federal bank The commercial banks on March 31, 1967, were supervisory agencies, concerning the proposed $219 million below the December 1964 base, practice of certain banks of deferring and amortiz­ $1,128 million below the target ceiling for 1967, ing profits and losses on sales of securities. The and $365 million below the interim ceiling effec­ proposed practice of certain banks of converting tive March 31, 1967. The target ceiling for 1967 tax-exempt revenues to a fully taxable basis in the generally is 109 per cent of the 1964 base. The preparation of income reports required by the interim ceiling effective March 31, 1967, was bank regulatory agencies has also been brought equal to the amount of foreign credits outstand­ to the attention of the supervisory agencies. ing on September 30, 1966, plus 40 per cent of “Accordingly, on behalf of the Board of the leeway between that amount and the 109 per Governors of the Federal Reserve System, we are cent ceiling. The interim ceiling was increased to informing all State member banks of the Federal 60 per cent of that leeway on April 1, 1967. Reserve System in this District that (1) the de­ Twelve commercial banks were over the 1967 ferring and amortizing of profits and losses on target ceiling by an aggregate amount of $46 security sales, and (2) the conversion of tax­ million on March 31, 1967, as compared with 18 exempt revenues to a fully taxable basis in bank banks over the ceiling by $50 million on Decem­ reports of income do not conform to current ber 31, 1966. The number of banks over the regulatory instructions of the Federal bank super­ interim ceiling had been reduced from 31 on visory agencies for the preparation of bank December 31, 1966—the month in which the 1967 financial statements. Although these proposed program was announced—to 24 on March 31, practices have some merit as methods of supple­ 1967. The amount by which these banks were in menting other information for certain analytical excess of the interim ceiling had been reduced purposes, it has not been demonstrated that the from $154 million to $76 million. practices are accurate or desirable methods of Foreign assets of nonbank financial institutions reporting the earnings and condition of banks. A increased by $30 million during the fourth quarter similar letter is being sent to insured nonmember of 1966, but declined by $9 million for the year banks by the Federal Deposit Insurance Corpora­ as a whole. This compares with an increase of tion and to national banks by the Comptroller of over $700 million in 1965. Holdings of long­ the Currency. term bonds and credits, primarily in Canada, in­ “A reexamination and evaluation of current creased by $492 million in 1966. This expansion bank accounting programs and financial reporting was more than offset by a net decline in other in­ practices and of new concepts in these areas is vestments, particularly corporate securities of de­ being conducted by a committee consisting of veloped countries other than Canada and Japan. representatives of the three Federal bank super­ Most of that decline probably reflected changes visory agencies. All banks will be promptly in market prices rather than in sales. notified if any changes affecting the reporting of Holdings of foreign assets subject to the guide­ items in bank financial statements are adopted. line established for nonbank financial institutions “Your continued cooperation in observing by the 1967 program totaled $1,952 million on current reporting instructions on these items pend­ December 31, 1966. This was $71 million, or ing a thorough review of the issues will be 3.5 per cent, below the ceiling suggested by the greatly appreciated.” guideline. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 785 CHANGES IN INTERNATIONAL FINANCIAL liabilities to foreigners shown in Tables 8 and 9 STATISTICS on pages 877-79 have been revised to exclude Several changes have been made in the Interna­ the holdings of dollars of the IMF derived from tional Financial Statistics section of the Bulletin payments of the U.S. subscription and from the on pages 872-89. Table 4 on page 874 showing exchange transactions and other operations of the U.S. gold stock and holdings of convertible the IMF. foreign currencies has been revised to include the The table presenting gold reserves and dollar U.S. reserve position in the International Monetary holdings of foreign countries and international Fund (IMF). Three new tables have been in­ organizations has been deleted. cluded: Table 5 on page 875 shows the factors PUBLICATION OF ANNUAL REPORT that affect the U.S. position in the IMF; Table 6 The Fifty-Third Annual Report of the Board of on page 876 brings together the various statistical Governors of the Federal Reserve System, cover­ components of the liabilities that enter into the ing operations of the calendar year 1966, is avail­ U.S. balance of payments calculated on the liquid­ able for distribution. Copies may be obtained upon ity basis; and Table 10 on page 880 shows esti­ request from the Board’s Publications Services, mated foreign holdings of marketable U.S. Gov­ Division of Administrative Services, Washington, ernment bonds and notes. D.C. 20551. “ Table 7 on page 877, presenting an area break­ down of U.S. liquid liabilities to official institu­ ERRATUM tions of foreign countries, has been revised to See Law Department, page 752, for corrected include holdings of convertible nonmarketable voting record on Board’s Order under Section 3 U.S. Government securities with an original ma­ of the Bank Holding Company Act, which ap­ turity of more than 1 year. Data on short-term peared on page 578 of the April 1967 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication May 12 Industrial production declined slightly in April dined further in April, and over-all output of busi­ and retail sales were about unchanged. Total non­ ness equipment was 3 per cent below the high farm employment rose somewhat, despite a further reached at the end of 1966. Production of most decline in manufacturing employment. Bank credit nondurable and durable materials, including iron and time and savings deposits increased, but the and steel, also declined. money supply edged downward. Yields on Treasury bills fell further between mid-April and mid-May, EMPLOYMENT while those on long-term bonds—U.S. Govern­ Nonfarm payroll employment rose by 98,000 in ment, corporate, and municipal—rose. April. Increases were concentrated in retail trade, services, and government. Manufacturing employ­ INDUSTRIAL PRODUCTION ment was reduced again in April—by 117,000—■ with declines widely distributed among the dur­ Industrial production in April was 155.9 per able goods industries; construction employment cent of the 1957-59 average—0.3 per cent below also declined. The workweek in manufacturing the March level of 156.4 per cent, but 1.3 per cent changed little in April. The unemployment rate above a year earlier. Output of materials, business was 3.7 per cent as compared with 3.6 per cent in equipment, and consumer durable goods other March. than autos was reduced. DISTRIBUTION Auto assemblies rose 10 per cent in April from the low March level, but were still 16 per cent The value of retail sales in April was about below a year earlier; May production is scheduled unchanged from the downward revised March level close to the April rate. Output of television sets and was 3 per cent above a year earlier. Since was cut back sharply in April to a level 30 per cent early last fall, total sales have been essentially below last December’s record high, and furniture stable with moderate month-to-month fluctuations. production continued to fall. Output of appliances Total sales at durable goods stores in April were apparently stabilized at a level about 15 per cent unchanged from March despite increased unit sales below last October's peak. Production of industrial, of new autos. At nondurable goods stores, sales freight and passenger, and farm equipment de­ declined slightly from the peak reached in March, although apparel and general merchandise stores INDUSTRIAL PRODUCTION registered advances. COMMODITY PRICES The wholesale commodity price index declined further in April to a level slightly below a year earlier, according to the BLS preliminary estimate. The April decline reflected mainly a continued sharp drop in prices of foods and foodstuffs, which, as in earlier months, was concentrated largely in livestock and products. In recent weeks, however, hog prices have increased sharply. Wholesale prices of industrial commodities in April were stable for the second month, as declines for hides and leathers, copper scrap and some copper prod­ ucts, and certain textile products were offset by moderate further gains for paper and some other F.R. indexes, seasonally adjusted. Latest figures shown are materials and products. for April. 786 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 787 BANK CREDIT, DEPOSITS, AND RESERVES four statement weeks ending April 26, averaging about $200 million. Member bank borrowings con­ Commercial bank credit increased $2.3 billion tinued to decline and excess reserves also dropped further in April. Loans to businesses at large com­ somewhat. Over the month of April, total and mercial banks rose substantially, reflecting mainly required reserves increased, but at a much slower needs for funds by corporations to meet accelerated rate than earlier in the year. payments on income and withheld taxes. Holdings of U.S. Government securities were reduced fol­ SECURITY MARKETS lowing substantial acquisitions in the two previous Yields on Treasury bills fell further between months. Holdings of municipal and other securities, mid-April and mid-May, especially on shorterhowever, continued to expand at a near-record term maturities. The 3-month bill was bid at rate. around 3.65 per cent in the middle of May. Yields The money supply declined somewhat in April, on U.S. Government notes and bonds, on the other following large increases in the previous 2 months. hand, rose considerably over the same period. Time and savings deposits continued to grow Yields on corporate and municipal bonds have rapidly, but at a slightly slower rate than in the turned up sharply since mid-April, and new-issue first quarter. U.S. Government deposits at commer­ yields have established new highs for 1967. Com­ cial banks rose sharply. mon stock prices advanced in early May to new Free reserves rose somewhat further over the highs and then fluctuated within a narrow range. Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 Bureau of Labor Statistics indexes. Latest figures shown are years or more and for 90-day Treasury bills. Latest figures for March. shown, week ending May 12. 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 c Corrected adjusted for seasonal variation 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..................................................... May 1967 850-61 Banking and monetary statistics, 1966.................. Mar. 1967 456-70 June 1966 901-04 Banks and branches, number of, by class and Semiannually State................................................................................. Apr. 1967 658-59 Banking offices: Analysis of changes in number of..................... Feb. 1967 310 Flow of funds (assets and liabilities)...................... Oct. 1966 1536-46 On, and not on, Federal Reserve Par List, number of........................................................ Feb. 1967 311 Income and expenses: Federal Reserve Banks......................................... Feb. 1967 308-09 Member banks: . _ Annually Calendar year......................... May 1967 862—70 Operating ratios...................................................... Apr. 1967 660-62 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 788 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.......... 790 Reserve Bank discount rates; margin requirements; reserve requirements..................... 795 Bank deposits; open market transactions; Federal Reserve Banks................................... 797 Bank debits; currency in circulation ................................................................................... 800 Money supply and bank reserves; banks and the monetary system................................. 802 Commercial and mutual savings banks, by classes ............................................................ 806 Commercial banks ............................................................................................................... 807 Weekly reporting banks.......................................................................................................... 810 Business Ioans ....................................................................................................................... 814 Interest rates ........................................................................................................................... 815 Security prices; stock market credit .................................................................................... 816 Open market paper; savings institutions .......................................................................... 817 Federally sponsored credit agencies..................................................................................... 819 Federal finance......................................................................................................................... 820 U.S. Government securities.................................................................................................... 822 Security issues........................................................................................................................... 826 Business finance .................................................................................................................. 828 Real estate credit .................................................................................................................. 830 Consumer credit .................................................................................................................... 834 Industrial production.............................................................................................................. 838 Business activity; construction............................................................................................... 842 Employment and earnings ..................................................................................................... 844 Wholesale and consumer prices............................................................................................. 846 National product and income series...................................................................................... 848 Flow of funds.......................................................................................................................... 850 Member bank income, 1966 ................................................................................................. 862 Guide to tabular presentation ............................................................................................... 788 Index to statistical tables ...................................................................................................... 899 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). 789 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

790 BANK RESERVES AND RELATED ITEMS MAY 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 Treas­ than member bank Member bank P d e o a r r i t o e d T U o .S ta . l Go B v r o o i t g u , u h g s t­ h t e t c u R r c a i e h t g i a p e re s u s e e r ! ­ ­ c v D o a a a n u n i d c s n d ­ e ­ t s s Float2 t T a o l ­ 3 s G to o c ld k s r c o e u t in a u n u r n g r c y t ­ ­ y d ­ r c C t e c u i i o n u i n l r a c n r ­ ­ y ­ T h c i r u n o e a g r s a l y d s h s ­ ­ T u re w r a y i s th ­ r e F s F e . e R i o g rv r n . ­ e B s a , O n t k h s er2 c O F o a t u . h c R n ­ e . t r s B W F a R n it k h . s re r C e a s n e n u r c d r v y ­ e s Total ments coin 4 Averages of daily figures 1929—June.,... 179 179 ............. 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 ............. 2,314 1933—June.......... 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2,211 1939—Dec............ 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—Dec............ 2,219 2,219 5 170 2.404 22,759 3,239 10,985 2,189 592 I ,531 292 12,812 12,812 1945—Dec............. 23,708 23,708 381 65224,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16,027 1950—Dec............ 20,345 20,336 9 142 1,11721,606 22,879 4,629 27,806 1 ,290 615 920 353 739 17,391 17,391 1956—Dec............ 24,765 24,498 267 706 1,63327,156 21,942 5,064 31,775 772 463 372 247 998 19,535 19,535 1957—Dec............ 23,982 23,615 367 716 1,44326,186 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 1,92131,217 16,929 5,587 33,954 422 514 229 244 1,112 17,259 2,859 20,118 1962—Dec............ 30,546 30,474 72 305 2,29833,218 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—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 6,284 44,579 1,191 291 164 429 83 19,568 4,262 23,830 1967—Jan.............. 44,066 43,847 219 389 2,21546,802 13,158 6,350 43,957 1,225 566 153 442 203 19,765 4,305 24,070 Feb............. 44,215 43,915 300 362 1 ,87546,587 13,144 6,409 43,525 1,252 609 136 448 496 19,675 4,034 23,709 Mar............ 44,620 44,351 269 200 1,60646,524 13,108 6,473 43,673 1,297 505 136 443 647 19,404»3,997*23,401 Apr............ 45,082 44,942 140 155 1,54046,902*13,108 *6,530*43,810*1,358 860 125 463 559 19,365 *4,005 *23,370 Week ending— 1966 Apr. 6............. 40,924 40,779 145 643 1,63743,325 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 11 ................ 41,239 40,940 299 702 1 ,77743,831 13,618 5,819 41,834 941 517 13! 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 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...4...1..,..6..8...2... 41,661 21 567 1,76544,230 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 l’,076 855 152 390 472 18,952 3,984 22',936 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 3,984 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 40! 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 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 i25 409 234 19,218 4,013 23,231 21.................. 42,525 42,525 782 2,485 45,841 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 CO92 1,032 138 401 218 19,056 4,077 23,133 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 BANK RESERVES AND RELATED ITEMS 791 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other P d e o a r r i t o e d T U o .S ta . l Go B v r o o i t g u , u h t g s ­ t e h c t u R a r c i g h e ti r a e p e s s u e e r ­ t ­ c v D o a a a n u n i d s c n d ­ e - t s s Float 2 t T a o l ­ 3 s G to o c ld k T s r c o e r i t u n e a u u n r a g n r c t y - ­ s y d ­ ­ r c C t e c u i i o n u i n l r a n c r ­ ­ ­ y T h c i u r n o a e r g s l y a d s h s ­ ­ T t r u h e w r a a y i n t s h ­ m F r F e e e .R s i m o g e . n r b r ­ v B e e r a s O n , b k t a h s n e k r2 c O F o a t u . c h R n ­ e . ts r B W F a . n R it k h M s e r m e r C s a e b e n u n e r d r c v r ­ e y b s an T k otal ments coin 4 Averages of daily figures Week ending— 1966 Oct. 5.................. 42,999 42,989 10 843 1,82545,722 13,258 6,106 42,878 1,091 693 (46 442 88 19,748 3 866 23 614 12.................. 42,969 42,969 947 1,88045^891 13,258 6,121 43,228 1 ;099 680 157 445 921 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 2,04345,440 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 '43,265 150 726 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 r4,268 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.................. 43,597 43,264 333 668 2,03246,407 13,158 6,283 44,603 1,199 127 181 412 63 19.262 4,256 23,518 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 4,304 23,892 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 4,188 24,165 1967 Jan. 4.................. 44,230 43,697 533, 566 2,49347,491 13,159 6,311 44,670 1,194 375 167 529 -92 20,116 4,546 24,662 11 ............. 44,553 44,000 553 586 2,21747,563 13,159 6,344 44,445 1 ,214 5(0 143 435 150 20,168 4,331 24,499 18.................. 43,937 43,797 140 218 2,111 46,384 13,158 6,348 44,004 1,221 565 149 445 209 19,298 4,363 23,661 25.................. 43,940 43,906 34 538 2,02646,581 13,158 6,360 43,567 1,234 699 174 410 307 19,709 4,280 23,989 Feb. 1.................. 43,698 43,698 176 2,26746,216 13,159 6,375 43,343 1,242 598 138 431 344 19,654 4,255 23,909 8.................. 44,133 43,928 205 354 2,01746,630 13,159 6,392 43,405 1 ,252 448 145 482 393 20,056 3,793 23,849 15.................. 44,244 43,987 257 456 1,92046,747 13,159 6,402 43,614 1,260 704 141 436 423 19,729 3,997 23,726 22.................. 44,337 43,844 493 477 1 ,85546,811 13,144 6,420 43,568 1,252 686 128 434 588 19,720 4,093 23,813 Mar. 1.................. 44,(87 43,942 245 167 1 ,67646,183 13,108 6,433 43,540 1,253 579 127 444 615 19,166 4,257 23,423 8.................. 44,550 44,276 274 202 1,553 46,451 13,109 6,447 43,571 1,271 451 132 435 720 19,427 3,760 23,187 15.................. 44,563 44,192 371 173 1,465 46,271 13,107 6,463 43,753 1 ,283 244 135 454 674 19,296 3,986 23,282 22.................. 44,717 44,378 339 302 1,85846,947 13,108 6,483 43,718 1,304 592 137 436 604 19,747 3,945 23,692 29.................. 44,659 44,529 130 138 1,57746,480 13,108 6,496 43,674 1,324 656 137 447 598 19,247 4,082 23,329 Apr. 5.................. 45,012 44,759 253 193 1,36146,677 13,108 6,503 43,680 1,328 658 130 454 648 19,390 3,999 23,389 12.................. 45,013 44,840 173 165 1,463 46,763 13,108 6,517 43,914 1,340 612 135 465 634 19,289 3,873 23,162 19.................. 44,929 44,888 41 199 l,79( 47,024 13,109 6,529 43,894 1,360 795 120 465 506 19,520 "4,052"23,572 26............. 45,142 45,098 44 123 1,49346,888 13,108 6,553 43,754 1,382 1 ,087 119 469 511 19,227 "4,156 ”23,383 End of month 1967 Feb. 43,971 43,971 165 1,55045,799 13,107 6,416 43,585 I ,238 386 145 432 619 18,916 4,479 23,395 Mar. 44,921 44,762 159 42 1 ,43446,507 13,109 6,489 43,583 1,315 828 131 454 646 19,148 i’4t353 "23,501 Apr. 45,470 45,116 354 54 1,57447,264"13,109"6,565 i-43,714p1,382 1 ,360 123 457 492 19,410 "3,743 "23,153 Wednesday 1967 Mar. 1.................. 43,971 43,971 115 1,51845,713 13,109 6,438 43,573 1,263 475 133 451 610 18,755 "4,503 "23,258 8.................. 45,288 44,350 938 327 1,393 47,151 13,109 6,454 43,744 1,283 181 123 447 749 20,187 "4,079"24,266 (5.................. 44,622 44,295 327 278 1,52846,498 13,109 6,471 43,788 1,301 452 128 455 595 19,358 "4,495 "23,853 22.................. 44,879 44,478 401 111 1 ,521 46,579 13,109 6,483 43,759 1 ,322 297 134 431 599 19,630''4,404"24,034 29.................. 44,529 44,529 39 1,26045,928 13,109 6,504 43,725 1,335 677 134 454 597 18,619 "4,570"23,189 Apr. 5.................. 45,308 44,858 450 539 1,49747,502 13,109 6,494 43,849 1,334 418 123 456 655 20,270 "4,131 "24,40! 12.................. 44,982 44,693 289 920 1,383 47,409 13,109 6,519 43,999 1,350 549 143 470 488 20,037 "4,435 "24,472 19.................. 45,385 45,245 140 213 1,551 47,254 13,109 6,543 43,889 1,374 762 128 464 502 19,787 "4,473"24,260 26.................. 45,383 45,075 308 481 1,39047,441 13,109 6,561 43,805 1,386 840 118 464 512 19,986"4,632"24,618 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. 4 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

792 BANK RESERVES AND RELATED ITEMS MAY 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 Bor­ Reserves Bor­ r in o g w s ­ Free r i o ng w s ­ Free r in o g w s ­ Free T h o e t ld al qu R i e re ­ d Excess B F a a . n R t k . s se r r e v ­ es T h o e t ld al qu R ir e e ­ d Excess B F a a . n R t k . s se r r e v ­ es T h o e t l a d l qu R ir e e ­ d Excess B F a a . n R t k . s se r r e v ­ es 1929—June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 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 (945—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 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 41 111 -70 1,143 1,128 15 23 -8 1966'—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 22,686 404 766 -362 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 22,862 389 611 -222 4.339 4,299 40 111 -71 1,079 1,077 2 26 -24 Dec. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Jan. 24,075 23,702 373 389 -16 4,594 4,571 23 69 -46 1,164 1,136 28 151 -123 Feb, 23,709 23,351 358 362 -4 4,557 4,511 46 113 -67 1,099 1,117 -18 46 -64 Mar. ”23,401 ”22,970 ”431 199 ”232 »4,612 ”4,608 ”4 72 ”-68 ”1,133 ”1,122 ”11 26 ”-15 Apr, ”23,370*23,050 ”320 134 ”186 ”4,645 ”4,613 ”32 41 ”-9 ”1,131 ”1,140 ”-9 11 ”-20 Week ending—• 1966—Apr. 6.... 22,358 22,025 333 623 -290 4,302 4,283 19 59 -40 1,094 1,095 -1 39 -40 13. . .. 22,402 22,042 360 603 -243 4,232 4,193 38 28 U 1,099 1,090 9 76 -67 20.... 22,627 22,254 373 685 -312 4,246 4,235 11 160 -149 ।; 129 1,128 1 41 -40 27. ... 22,615 22,235 380 642 -262 4,385 4,307 78 117 -39 1,164 1,148 16 10 6 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 (3 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 1,071 1,071 26 -26 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.... 23,518 23,008 510 647 -137 4,378 4,363 15 122 -107 1,075 1,070 5 79 -74 21 ... . 23,892 23,688 204 472 -268 4,701 4,656 45 75 -30 1,156 1,147 9 9 28 .... 24,165 23,728 437 548 -111 4,680 4,673 7 183 -176 1,136 1,131 5 63 -58 1967—Jan. 4. .. . 24,662 24,267 395 565 -170 4,846 4,827 19 201 -182 1,224 1,220 4 141 -137 11.... 24,499 23,872 627 585 42 4,618 4,579 39 254 -215 1,143 1,137 6 168 -162 18. . .. 23,661 23,536 125 217 -92 4,470 4,451 . 19 3 16 1,084 1,086 -2 84 -86 25.... 23,989 23,473 516 538 -22 4,544 4,521 23 1 22 1,107 1,108 -1 251 -252 Feb. 1 . ... 23,909 23,569 340 176 164 4,654 4,592 62 3 59 1,205 1,159 46 94 -48 8. 23,849 23,560 289 353 -64 4,591 4,579 12 65 -53 1,141 1,144 -3 60 -63 15. ... 23,726 23,308 418 456 -38 4,503 4,469 34 154 -120 1,105 1,096 9 113 -104 22.... 23,813 23,230 583 477 106 4,501 4,470 31 228 -197 1,105 1,105 6 -6 Mar. 1.... 23,423 23,264 159 167 -8 4,559 4,518 41 4 37 1,120 1,111 9 4 5 8. . 23,187 22,828 359 202 157 4,499 4,512 -13 13 -26 1,092 1,085 7 8 -1 15. . 23,282 22,910 372 173 199 4,531 4,500 31 64 -33 1,088 1,084 4 8 -4 22.... 23,692 23,125 567 302 265 4,789 4,753 36 197 -161 1,164 1,166 -2 7 -9 29.... 23,329 22,944 385 135 250 4,705 4,649 56 56 1,160 1,152 8 92 -84 Apr. 5. ... 23,389 22,942 447 180 267 4,646 4,628 18 97 -79 1,138 1,145 -7 -7 12.... 23,162 22,936 226 145 81 4,521 4.515 6 49 -43 1,137 1,127 10 27 -17 2 1 6 9 . . . . . . . . ” ” 2 23 3 , , 3 5 8 7 3 2* ” 2 2 3 3 , , 1 1 0 43 2 ” ”4 24 7 0 0 1 9 7 8 8 ” > 2 4 9 4 2 2 ” ” 4 4, , 6 5 9 8 3 6 ” ” 4 4 , , 5 66 8 6 4 ” ” 2 2 7 64 ........ ” ... - ..” 6 ...2 2 7 ” ” 1 1, , 1 1 3 2 3 9 ” ” 1 1 , , 1 1 3 3 4 3 p..... ” ... - .. 4 ... is ” ” -1 — 8 4 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 BANK RESERVES AND RELATED ITEMS 793 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 Total F.R. reserves Total F.R. reserves held Required Excess Banks held Required Excess Banks 1929—June 761 749 12 409 -397 632 610 22 327 -305 1933—June 648 528 120 58 62 441 344 96 126 -30 1939—Dec. 3,140 1,953 1,188 1,188 1,568 897 671 3 668 1941—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 1945—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 1947—Dec. 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950—Dec. .................................... 6,689 6,458 232 50 182 4,761 4,099 663 29 634 1956—Dec. 8,078 7,983 96 300 -203 5,859 5,371 488 144 344 1957—Dec, 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 1958—Dec. ............... 7,940 7,883 57 254 -198 5,849 5,419 430 162 268 1959—Dec. 7,954 7,912 41 490 -449 6,020 5,569 450 213 237 1960—Dec. 7,950 7,851 too 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—Apr. 8,905 8,882 23 261 -238 8,169 7,895 274 242 32 May 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. 9,306 9,258 48 293 -245 8,528 8,229 299 181 118 Dec. 9,509 9,449 61 220 -159 8,619 8,318 301 161 140 1967—Jan. 9,584 9,567 17 97 -80 8,732 8,428 305 72 233 Feb. 9,439 9,408 31 115 -84 8,614 8,315 299 88 211 Mar. ”9,361 ”9,299 ”62 53 j>9 ”8,295 ”7,940 ”354 48 ”306 Apr. ”9,399 ”9,382 ”17 53 ”-36 ”8,195 ”7,915 ”280 29 ”251 Week ending— 1966—Apr. 6............................... 8,858 8,825 33 301 -268 8,104 7,822 282 224 58 13 8,921 8,862 59 212 -153 8,151 7,897 254 287 -33 20.............................. 8,955 8,932 22 292 -269 8,297 7,959 338 192 145 27...................... 8,936 8,882 54 252 -198 8,130 7,898 231 263 -31 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 8,241 8,170 71 220 -149 Nov. 2..... 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 Dec. 7..................... 9,311 9,289 22 217 -195 8,350 8,213 137 212 -75 14.............................. 9,321 9,295 26 262 -236 8,744 8,280 464 184 280 21.............................. 9,593 9,537 56 224 -168 8,441 8,348 93 164 -71 28.............................. 9,579 9,556 23 183 -160 8,771 8,368 403 119 284 1967—Jan. 4.............................. 9,832 9,773 59 159 -100 8,760 8,447 313 64 249 11.............................. 9,671 9,648 23 80 -57 9,068 8,507 561 83 478 18.............................. 9,562 9,539 23 52 -29 8,545 8,460 85 78 7 25.............................. 9,507 9,454 53 222 -169 8,830 8,390 440 64 376 Feb. 1.............................. 9,525 9,482 43 9 34 8,526 8,336 190 70 120 8.............................. 9,511 9,477 34 170 -136 8,606 8,360 246 58 188 15.............................. 9,448 9,393 55 59 -4 8,671 8,350 321 130 191 22.......................... 9,435 9,374 61 167 -106 8,771 8,281 490 76 414 Mar. 1 9,351 9,364 -13 70 -83 8,392 8,271 121 89 32 8.............................. 9,278 9,237 41 117 -76 8,318 7,994 324 64 260 15.............................. 9,315 9,277 38 40 -2 8,347 8,049 298 61 237 22.............................. 9,401 9,354 47 64 -17 8,338 7,852 486 34 452 29.............................. 9,386 9,305 81 4 77 8,079 7,838 241 39 202 Apr. 5............................... 9,352 9,335 17 54 -37 8,253 7,834 419 29 390 12.............................. 9,415 9,374 41 43 -2 8,088 7,920 168 26 142 19.............................. ”9,447 ”9,413 ”34 79 ”-45 ^8,411 ”7,970 ”441 35 ”406 26.................... ”9,437 ”9,398 ”38 50 ”-12 ”8,120 ”7,947 ”173 30 »143 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

794 MAJOR RESERVE CITY BANKS MAY 1967 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) ------- - ----— - — —— . —-------- Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less— Net— Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r c v e e e ­ s s s 1 r a o B t B w a F o n in . k r R g ­ s s . F i f b e n u N a d n t e e n e d t r r k s ­ a l S d u e r o f p i r c l u it s r r P e e e s q a r e o u v 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 t T c r - t a o w io n t a a n s y ­ l s 2 b c o b h P u a f a y u n n s i k r n e e ­ s s g t s o b S e a f a l n l n l i e k n e s s g t d L e o a t l a o e n rs s 3 de f B r i r a n o o o l g w e m r s ­ r ­ s 4 lo N a e n t s trans. Total—46 banks 1967—Mar. 1................ 58 5 1,950 -1,897 18.3 3,268 1,318 1,161 2,107 157 1,460 74 1,385 8 10 82 1,915 -1,986 19.3 3,038 1,123 965 2,073 158 1,505 79 1,427 15 45 72 2,301 -2,329 22.6 3,679 1,378 1,138 2,541 240 1,600 78 1,522 22. 43 219 2,467 -2,643 24.8 3,684 1,217 1,049 2,635 168 1,881 92 1,788 29................ 122 89 2,484 -2,452 23.3 3,707 1,222 1,082 2,624 140 1,828 46 1,782 Apr. 5................ 21 141 2,181 -2,301 21.9 3,125 943 816 2,309 128 1,750 95 1,656 12................ 34 (03 2,982 -3,051 29.3 3,979 998 977 3,002 21 2,009 76 1,932 19................ *14 129 2,617 r-2,732 >■26.0 3,819 1,202 1,151 2,668 50 1,744 69 1 ,675 26............... 57 55 2,159 -2,157 20.4 3,579 1,420 1,315 2,264 105 1,500 78 1,422 <8 in New York City 1967—Mar. 1............... 26 538 -511 12.2 1,155 618 591 565 27 762 74 687 -9 13 797 -819 19.6 1,294 498 498 797 862 79 783 15............... 22 61 1 ,254 -1,293 31.0 1,740 486 486 1 ,254 957 78 879 22................ 20 192 943 -1,116 25.3 1,410 467 467 943 888 92 796 29....... 58 .................. 1,124 -1,067 24.7 1,599 474 474 1,124 .............8...8..2 46 837 Apr. 5................ 19 95 932 -1,007 23.4 1,241 309 309 932 1,000 95 905 12................ 12 47 1,222 -1,258 30.0 1,637 414 414 I ,222 1 ,008 76 932 19............... 64 981 ^-1,045 >•24.6 1,584 603 603 981 840 69 771 26. ............. 26 .................. 853 -827 19.1 1 ,500 646 646 853 884 78 806 38 outside New York City 1967—Mar. 1................ 32 5 1 ,412 -1,386 22.3 2,113 700 571 1,542 130 698 698 8 20 68 1,119 -1,167 19. 1 1,744 626 467 1,277 158 644 644 15....... 23 12 1 ,047 -1,036 16.9 1,939 892 652 1,287 240 643 643 22.. 23 27 1,523 -1,527 24.4 2,273 750 582 1,691 168 992 992 29................ 64 89 1,360 - 1,385 22.2 2,108 748 608 1,500 140 946 .............9..4...6 Apr. 5................ o 46 1,250 -1,294 20.8 1,884 634 507 1,377 128 750 750 12 22 57 1 ,759 -1,794 28.9 2,343 583 563 1 ,780 21 1 ,000 1,000 19. 14 64 1,636 -1,687 27.0 2,235 599 548 1 ,687 50 904 1 903 26................ 31 55 1 ,306 -1,330 21.3 2,080 774 669 1,411 105 616 .............6...1..6 5 in City of Chicago 1967—Mar. 1............... 14 408 -394 39.7 601 193 173 428 20 27 27 8. . 4 345 -342 35.3 433 88 76 358 13 25 25 15................ 4 242 -238 24.6 468 226 217 250 9 6 6 22................ -I 225 -226 21.5 464 239 210 254 29 12 12 29................ 6 86 343 -423 40.8 533 189 181 352 9 23 23 Apr. 5 -6 335 -341 33.2 477 142 126 351 16 45 45 12 3 27 449 -472 46.9 626 178 178 449 55 55 19....... -5 406 -411 40.4 579 173 155 424 18 36 36 26................ 3 18 344 -359 35.5 561 217 197 364 20 22. 22 33 others 1967—Mar. 1....... 18 5 1,004 -992 19.0 1,512 507 398 1,114 109 671 671 8 16 68 774 -826 16.0 1,311 537 392 919 145 619 619 15 19 12 805 -798 15.5 1,471 666 434 1,037 232 637 637 22................ 24 27 1,298 -1,302 25,0 1,809 511 372 1,437 139 981 981 29....... 58 3 1,017 -962 18.5 1,575 559 427 1,148 131 923 .................. 923 Apr. 5. . 8 46 915 -953 18.3 1,407 492 381 1,026 111 705 705 12 19 30 1,311 -1,321 25.4 1,716 405 385 1,331 21 945 945 19 18 64 1,230 -1,276 24.4 1,656 426 393 1,262 32 868 I 867 26.............. 28 37 962 -971 18.5 1,519 557 472 1,047 85 594 .................. 594 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 * 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

MAY 1967 DISCOUNT RATES 795 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 Apr. 30 date rate Apr. 30 date rate Apr. 30 date rate Boston......................................................... 4 Apr. 7, 1967 4ft 4’4 Apr. 7, 1967 5 5 Apr. 7, 1967 514 New York................................................... 4 Apr. 7, 1967 414 4*4 Apr, 7, 1967 5 5ft Dec. 6' 1965 5 Philadelphia.............................................. 4 Apr. 7, 1967 4ft 4*4 Apr. 7, 1967 5 5 Apr. 7, 1967 5*/2 Cleveland..................................................... 4 Apr. 7, 1967 4*4 4’4 Apr. 7, 1967 5 5*4 Apr, 7, 1967 6 Richmond, ............................................... 4 Apr. 7, 1967 4ft 4*4 Apr. 7, 1967 5 5'“ Apr. 7,’ 1967 5*4 Atlanta...................................................... . 4 Apr. 10, 1967 4*4 4/2 Apr. 10, 1967 5 6 Apr. io; 1967 6ft Chicago.................................... 4 Apr. 7, 1967 4*4 4*4 Apr. 7; 1967 5 5 Apr. 7' 1967 5ft St. Louis..................................................... 4 Apr. 14, 1967 4ft 4/2 Apr. 14, 1967 5 5 Apr. 14, 1967 5*/2 Minneapolis............................................... 4 Apr. 7, 1967 4ft 4*/2 Apr. 7, 1967 5 5 Apr. 7' 1967 5*/2 Kansas City............................................... 4 Apr. 7, 1967 4*4 4*/2 Apr. 7, 1967 5 5 Apr. 7, 1967 5*/2 Dallas................................................... 4 Apr. 7, 1967 4*4 4*4 Apr. 7, 1967 5 5 Apr. 7; 1967 5*4 San Francisco........................................... 4 Apr. 7, 1967 41/2 4'4 Apr. 7; 1967 5 5 Apr. 7, 1967 5/2 1 Discounts of eligible paper and advances secured by such paper or 2 Advances secured to the satisfaction of the F.R. Bank, Maximum by U.S. Govt, obligations. Rates shown also apply to advances secured maturity: 4 months. by obligations of Federal intermediate credit banks maturing within 6 3 Advances to individuals, partnerships, or corporations other than months. Maximum maturity: 90 days except that discounts of certain member banks secured by U.S. Govt, direct obligations. Maximum matu­ bankers’ acceptances and of agricultural paper may have maturities not rity: 90 days. over 6 months and 9 months, respectively, and advances secured by FICB obligations are limited to 15 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. I O n c e t ffe 1 3 c 5 0 t . D .... e .. c . . 1 .. . . 9 .. 3 4 .. 1 2 ... , . .. 1 ... 9 ... 4 . .. 1 . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 r -1‘4 t 1 1 I '4 A M S u e ' a p g “ y t . . 1 1 4 2 5 9 5 2 . . . . . . A . . . . . . . . . . . . . . . . . . . . . . . . p . . 1 . . . . . . . . . . . . . . . r 9 . . . . . . . . . . . . . . 5 . . . . . . . . . . . . 5 . . . . . . . . . . . . 1 . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........i 1 2 2 1 1 ..' . ’ ’ 4 4 ' . 4 4 . 1 .. - - - - - ’ - . 4 . 2 2 2 2 t 1 .' 1 1 ' ’ ’ 4 4 4 4 4 4 2 1 1 2 2 1 1 ’ ’ ’ ' ' 4 4 4 4 4 J M u a ne r. 1 1 6 6 2 . . . . . . . . . . . . . . . . . 1 . . . . . . . 9 . . . . . . 5 . . . . . . 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘ . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . 8 . . . . . . ........ 2 3 3 .. . ' . ' 4 . 4 3 3 4.. - . - - ' . 3 4 3 . 4 ... ' . 4 ............... 3 4 3 3 3 4 . f f t t 13...................................... 2'4 2'4 1960 1946 Nov. 18...................................... 2'4-2’4 2'4 t 14-1 1 23..................................... 2'4 2'4 June 3...................................... 3 4-4 4 1 1 10........3....'.4...-..1...................3.ft 1956 14.............3...'.4....................3.ft Apr. 13........................... 2'4-3 2’4 3 -3'4 3 1948 * 20...................................... 2’4-3 2’4 3 3 1 -U4 1’4 Aug. 24...................................... 2’4-3 3 19........................................... 1'4 1'4 31...................................... 3 3 1963 ~ 23.......................................... 1'4 1 - '4 1'4 1 1' 4 4 Au 19 g 5 . 7 9............................3.. .....-..3.'4 3 July 17........................... ' . ..... 2 ... 6 .. ...... 3 .. ..3.. - '.4 3 ... '4 ... ......... 3 3 f f t t 1950 " 23...................................... 3 -3'4 3 3 '4 1964 Aug. 21..............................1...'.4...-..1...%. 1’4 Dec. 2...................................... 3 3 Nov. 24...................................... 3'4-4 4 ~ 25.......................................... 1’4 1’4 30.............4........................4. 1958 Jan. 22..............................2..’4-3 3 1965 1953 24...................................... 2’4-3 2’4 4 -4'4 4ft Jan. 16.............................1..’.4...-.2.. 2 Mar. 7...................................... 2'4-3 2'4 13...................................... 4'4 4ft 23........................................ 2 2 13...................................... 2'4-2’4 21............... 2'4 2% 1967 F 1 e 9 b 5 . 4 5.............................1..’.4...-..2.... 1’4 A M Au p a g r y . . 1 1 9 8 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 ’ ’ 4 4 1 - - ’4 2 2 '4 1 1 1 % % ’4 A A p p r r . . 1 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 -4'4 4 4 15......................................... 1'4 1 - ’4 1 ’4 1 1’ ’ 4 4 Se * p t. 2 1 3 2 .. , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1’4 2 -2 2 2 In effect Apr. 30................. 4 4 ‘ 16.............................. 114-1’4 1'4 Oct. 24...................................... 2 -2'4 2 May 21......................................... 1'4 1'4 Nov. 7..................................... 2'4 2'4 t Preferential rate of one-half of 1 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 1 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, 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr, 3-4. 2.50; June 29, 2.75; July Note.—Discount rates under Secs. 13 and 13a (as described in table 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2,75; Oct. 5, 2.50; Oct. 23. Nov. 3, above). For data before 1942, see Banking and Monetary Statistics, 2.75; 1962—Mar. 20-21, 2.7 5; 1964—Dec. 10, 3.8 5; Dec. 15, 17, 22, 24, 1943, pp. 439^2. ' 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

796 RESERVE REQUIREMENTS MAY 1967 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Requirements through July 13, 1966 Requirements beginning July 14, 1966 Net Time deposits4 Net demand deposits2 demand deposits2 (all classes of banks) Time deposits Other (all time deposits Effective date1 C re e s n e t r r v a e l Re c s i e ty rv e Country cla o ss f e s Effective date1 Re c s i e ty rv e Country Savings ba c n it k y s 3 banks banks banks) banks banks deposits Up to c I e n s s e x o ­ f $5 mil­ $5 mil­ lion lion In effect Dec. 31, 1949.............. 22 18 12 5 1966—July 14,21.............. 5 16ft 5 12 54 54 5 1951—Jan. 11, 16......................... 23 19 13 6 Sept. 8, 15.................. 6 Jan. 25, Feb. 1................ 24 20 14 1953—July 9,1............................ 22 19 13 1967—Mar. 2.......................... 3/2 3/2 1954—June 24, 16......................... 21 5 Mar. 16......................... 3 3 July 29, Aug. 1............... 20 18 12 1958—Feb. 27, Mar 1................ 191/2 17/2 11/2 In effect Apr. 30, 1967.... 1614 12 3 3 6 Mar. 20, Apr. 1............... 19 17 11 Apr. 17............................... I8I/2 Apr. 24................................. 18 16ft I960—Sept. 1................................. 171/2 Present legal Nov. 24................................. 12 requirement: Dec. 1................................. 1616 1962—July 28................................. (3) Minimum.................................... 10 7 3 3 3 Oct. 25, Nov. 1............... 4 Maximum................................... 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central 4 Effective Jan. 5, 1967, time deposits such as Christinas and vacation reserve or reserve city banks and the second to the change at country club accounts became subject to same requirements as savings deposits. banks. For changes prior to 1950 see Board’s annual reports. 5 See preceding columns for earliest effective date of this rate. 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 Dec, 1959. From Dec. 1959 to Nov. I960, member due from domestic banks. banks were allowed to count part of their currency and coin as reserves; 3 Authority of the Board of Governors to classify or reclassify cities effective Nov. 24, I960, they were allowed to count all as reserves. For as central reserve cities was terminated effective July 28, 1962. further details, see Board’s annual reports. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Nov. 1, 1933—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 2ft 3 4 4 4 4 Other time deposits:1 Less than 12 months...... 3 214 2'4 3 3/2 3% 4 4 Multiple-maturity: Other time deposits:1 90 days or more........... 5 5 12 months or more.......... 3 214 2ft 3 4 4 4ft 5 ft Less than 90 days...... 4 4 6 months to 12 months ... 3 2ft 214 3 391 4 4% 5ft (30-89 days) 90 days to 6 months............ 3 2'/4 2 2ft 2ft 4 4ft 5ft Single-maturity: Less than 90 days.................. 3 214 1 1 1 1 4 5ft $100,000 or more....... 5% 5ft (30-89 days) Less than $100,000. . . . 5ft 5 1 For exceptions with respect to foreign time deposits, see Oct. 1962 Under this regulation the rate payable by a member bank may not in Bulletin, p. 1279, and Aug. 1965 Bulletin, p. 10 8 4. For rates for postal any event exceed the maximum rate payable by State banks or trust savings deposits, see Board’s annual reports. 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. MARGIN REQUIREMENTS (Per cent of market value) 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

MAY 1967 BANK DEPOSITS; OPEN MARKET ACCOUNT 797 DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k b l s er Y N o e r w k C o it f y Other C b o a u n n ks try Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n ks try City Chicago City Chicago Four weeks ending March 1, 1967 Four weeks ending March 29, 1967 Gross demand—Total.... 145,991 29,314 6,727 53,098 56,852 Gross demand—Total.... 145,633 29,140 6,755 53,294 56,444 Interbank......1..6..,.0..7...8...... 5,341 1,235 7,473 2,030 Interbank....................... 15,863 5,062 1 ,236 7,527 2,039 U.S. Govt............................ 4,442 832 220 1,825 1,566 U.S. Govt....................... 4,294 1,006 259 1,626 1,404 Other...................................... 125,470 23,141 5,274 43,800 53,256 Other............................... 125,477 23,073 5,261 44,142 53,002 Net demand 1......................... 116,135 21,117 5,166 41,659 48,194 Net demand 1......................... 116,847 21,850 5,257 42,004 47,737 Time............................................ 134,054 18,837 5,214 51,444 58,560 Time. ......................................... 136,270 19,082 5,430 52,243 59,516 Demand balances due Demand balances due from dom. banks,..... 8,013 217 350 1,994 5,453 from dom. banks........ 8,033 203 280 1,994 5,556 Currency and coin............... 4,035 333 76 1,236 2,389 Currency and coin............... 3,943 321 76 1,208 2,338 Balances with F.R. Balances with F.R. Banks..................................... 19,668 4,206 1,041 8,202 6,221 Banks..................................... 19,429 4,310 1,050 8,135 5,936 Total reserves held.............. 23,703 4,539 1,117 9,438 8,610 Total reserves held.............. 23,372 4,631 1 , 126 9,343 8,274 Required, ....................... 23,34/ 4,509 1,114 9,402 8,316 Required.. . .................. 22,952 4,604 1,122 9,294 7,934 Excess............................... 362 30 3 36 294 Excess............................... 420 27 4 49 340 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 ro le 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 ro le s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa ro le s s s m re s a d h o e t i u f r m t r s i p t , y ­ c G h p r a u o s r s e ­ s s G sa ro le s s s m E s a h x o t i u c f r t h r s i . t y tions 1966—Mar,............. 960 314 101 873 314 101 78 9 144 Apr................. 929 748 201 887 748 201 18 25 May.............. 1,208 392 50 1,174 392 50 -281 34 281 June............... 1,448 650 110 1,296 650 no 55 108 88 -108 July................ 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 Dec................. 771 405 736 405 15 12 1967—Jan.................. 904 656 439 904 656 439 Feb................. 812 305 812 305 -2,457 2,595 Mar................ 1,496 704 1,395 704 80 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal acceptances (U.S. Govt, Net agency 5-10 years Over 10 years securities) change obliga­ Month in U.S. tions Under Net c G h p r a u o s r s e ­ s s G sa ro le s s s o E t s r u h x r i m c f it t h s a y . ­ c G h p r a u o s r s e ­ s s G sa ro le s s s o E s tu r h x r m i c f it t h y s a . ­ c G h p r a u o s r s e ­ s s G sa ro le s s s G s it o e ie v c s u t, r ­ p ( m a n u g e e rc r t n e h t r e s a e ­ ) s ­ e r O i n g u e h t t t ­ , r a m c e g h n e p r a e e n u s t e t r e s ­ ­ , change 1 1966—Mar.. .. -144 222 222 545 3 1 549 Apr.. . . 682 682 -20 4 30 14 May. . , 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 Dec.. . . 3 5 3,751 3,746 370 34 15 47 466 1967—Jan......... 1,693 2,320 -818 -34 4 -124 -972 Feb......... -138 3,253 3,253 507 3 37 546 Mar.... 14 8 3,399 3,253 938 13 -7 4 948 t Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

798 FEDERAL RESERVE BANKS MAY 1967 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE DANKS (In millions of dollars) Wednesday End of month Item 1967 1967 1966 Apr. 26 Apr. 19 Apr, 12 Apr. 5 Mar. 29 Apr. Mar. Apr. Assets Gold certificate account............................................................... 10,766 10,766 10,777 10,778 10,762 10,785 10,778 11,459 Redemption fund for F.R. notes.......................................... 1 ,822 1,828 1,824 1,827 1,835 1,819 1,833 1,731 Total gold certificate reserves................................................... 12,588 12,594 12,601 12,605 12,597 12,604 12,611 13,190 Cash...................................................................................................... 334 334 327 327 339 342 345 238 Discounts and advances: Member bank borrowings.................................................... 456 188 900 519 29 29 32 432 Other.................................................................................................. 25 25 20 20 10 25 10 20 Acceptances: Bought outright........................................................................... 69 68 68 68 68 68 69 80 Held under repurchase agreements.................................. 118 37 56 90 32 98 41 79 Federal agency obligations—'Held under repurchase agreements................................................................................ 18 5 12 25 10 13 U.S. Govt, securities: Bought outright: Bills............................................................................................... 13,006 13,176 12,624 12,830 12,576 13,047 12,809 9,162 Certificates—-Special............................................................. Other............................................................... 4,352 4,352 4,352 4,352 4,351 4,352 4,351 12 Notes............................................................................................. 21,368 21,368 21,368 21,368 21,353 21,368 21,353 24,965 Bonds............................................................................................ 6,349 6,349 6,349 6,308 6,249 6,349 6,249 6,574 Total bought outright............................................................. 45,075 45,245 44,693 44,858 44,529 45,116 44,762 40,713 Held under repurchase agreements................................... 290 135 277 425 344 146 Total U.S. Govt, securities......................................................... 45,365 45,380 44,970 45,283 44,529 45,460 44,908 40,713 Total loans and securities........................................................... 46,051 45,703 46,026 46,005 44,668 45,690 45,073 41,324 Cash items in process of collection........................................ 7,411 8,263 7,226 7,021 6,562 6,683 5,875 6,803 Bank premises................................................................................. 109 109 108 108 108 108 108 102 Other assets: Denominated in foreign currencies.................................... 153 153 162 158 188 184 160 299 IMF gold deposited 1.............................................................. 230 229 228 228 228 230 228 181 All other........................................................................................... 508 481 454 424 397 523 403 442 Total assets.......................................................................................... 67,384 67,866 67,132 66,876 65,087 66,364 64,803 62,579 Liabilities F.R. notes............................................................................................. 38,443 38,539 38,650 38,512 38,383 38,368 38,256 36,464 Deposits: Member bank reserves.............................................. 19,986 19,787 20,037 20,270 18,619 19,410 19,148 18,736 U.S. Treasurer—General account.................................... 840 762 549 418 677 1,360 828 512 Foreign............................................................................................. 118 128 143 123 134 123 131 192 Other: IMF gold deposit1................................................................. 230 229 228 228 228 230 228 181 All other................................................................................... 234 399 242 228 226 227 226 220 Total deposits..................................................................................... 21,408 21,305 21,199 21,267 19,884 21,350 20,561 19,841 Deferred availability cash items..................................... 6,021 6,548 5,843 5,524 5,302 5,109 4,441 4,842 Other liabilities and accrued dividends............................... 221 221 222 232 218 225 231 188 Total liabilities................................................................................. 66,093 66,613 65,914 65,535 63,787 65,052 63,489 61,335 Capital accounts Capital paid in................................................................................ 579 579 579 579 578 579 578 560 Surplus.................................................................................................. 570 570 570 570 570 570 570 551 Other capital accounts.................................................................. 142 104 69 192 152 163 166 133 Total liabilities and capital accounts.................................. 67,384 67,866 67,132 66,876 65,087 66,364 64,803 62,579 Contingent liability on acceptances purchased for foreign correspondents....................................................... 264 252 244 235 272 232 137 U.S. Govt, securities held in custody for foreign account......................................................................................... 7,887 7,808 7,720 7,682 7,604 7,912 7,547 7,455 Federal Reserve Notes—Federal Reserve Agents’ Accounts F R notes outstanding (issued to Bank)............................ 40,888 40,935 41,010 40,919 40,961 40,853 40,899 39,989 Collateral held against notes outstanding: Gold certificate account........................................................ 6,695 6,695 6,700 6,690 6,690 6,695 6,690 6,553 Fligihle paper................................................................................ ' 31 * 1 1 38 U.S. Govt, securities............................................. .................. 36,306 36,306 36,306 36,306 36,306 36,306 36,306 34,678 Total collateral........................................................................ 43,032 43,001 43,006 42,996 42,997 43,002 42,996 41,269 1 See note 1(b) to table at bottom of p. 876. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FEDERAL RESERVE BANKS 799 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1967 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e il i l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ C ca h g i o ­ Lo S u t i . s M ap in o n li e s ­ K C s a a it n s y ­ Dallas c F S is r a a c n o n ­ Assets Gold certificate account............................. 10,785 642 2,394 694 948 955 599 1,981 383 291 451 261 1,186 Redemption fund for F.R. notes.......... 1,819 102 436 94 151 157 100 337 63 32 71 61 215 Total gold certificate reserves................. 12,604 744 2,830 788 1,099 1,112 699 2,318 446 323 522 322 1,401 F.R. notes of other Banks....................... 702 60 177 29 88 40 94 60 17 10 21 32 74 Other cash......................................................... 342 11 38 7 55 19 43 52 32 9 18 18 40 Discounts and advances: Secured by U.S. Govt, securities... 28 3 4 1 2 1 1 4 2 4 1 5 Other............................................................. 26 1 7 1 2 1 2 4 1 1 1 2 3 Acceptances: . Bought outright.................................... 68 68 Held under repurchase agreements. 98 98 Federal agency obligations—Held under repurchase agreements........ 10 10 U.S. Govt, securities: Bought outright................................... 45,116 2,417 11,425 2,301 3,432 3,231 2,469 7,421 1,602 865 1,784 I ,883 6,286 Held under repurchase agreements. 344 344 Total loans and securities......................... 45,690 2,421 11,956 2,303 3,434 3,234 2,472 7,426 1,607 868 1,789 1,886 6,294 Cash items in process of collection... 8,632 544 1,483 504 653 734 783 1.381 445 247 561 521 776 Bank premises...................................... 108 3 10 2 5 6 20 19 9 3 13 9 9 Other assets: Denominated in foreign currencies, 184 9 148 10 16 10 11 27 6 4 8 11 24 IMF gold deposited2............................. 230 230 All other....................................................... 523 27 133 29 41 36 29 84 19 10 20 22 73 Total assets....................................................... 69,015 3,819 16,905 3,672 5,391 5,191 4,151 11,367 2,581 1,474 2,952 2,821 8,691 Liabilities F.R. notes......................................................... 39,070 2,335 9,067 2,247 3,175 3,601 2,199 7,028 1,434 700 1,490 1,252 4,542 Deposits: Member bank reserves........................... 19,410 795 5,513 826 1,425 864 1,092 2,790 686 488 861 1 ,009 3,061 U.S. Treasurer—General account.. 1,360 78 303 91 65 95 94 188 41 46 87 72 200 Foreign........................................................... 123 5 338 6 10 6 7 17 4 3 5 7 15 Other: I A M ll F o t g h o e ld r. .. d ... e .. p ... o .. s ... i . t . .. 2 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 3 0 0 2 2 1 3 4 0 4 9 1 8 1 2 * * 3 i 59 Total deposits.................................................. 21,353 880 6,228 932 1,501 973 1,194 2,997 731 537 956 1,089 3,335 Deferred availability cash items............ 7,055 528 1,211 412 582 530 665 1,111 362 201 440 398 615 Other liabilities and accrued dividends 225 12 61 12 17 15 12 36 8 5 9 9 29 Total liabilities................................................ 67,703 3,755 16,567 3,603 5,275 5,119 4,070 11,172 2,535 1 ,443 2,895 2,748 8,521 Capital Accounts Capital paid in................................................ 579 28 149 31 52 30 36 85 20 14 26 34 74 Surplus................................................................ 570 27 148 30 51 30 35 83 20 14 25 33 74 Other capital accounts................................ 163 9 41 8 13 12 10 27 6 3 6 6 22 Total liabilities and capital accounts.. 69,015 3,819 16,905 3,672 5,391 5,191 4,151 11,367 2,581 1,474 2,952 2,821 8,691 Ratio of gold certificate reserves to F.R. note liability (per cent): Apr. 30, 1967................................... 32.3 31.9 31.2 35.1 34.6 30.9 31.8 33.0 31.1 46.1 35.0 25.7 30.8 Mar. 31, 1967................................... 32.3 30.0 28.3 32.9 32.0 32.9 34.3 34.8 35,3 36.7 37.5 38,4 31.4 Apr. 30, 1966................................... Contingent liability on acceptances purchased for foreign correspond­ ents............................................................ 272 13 477 14 24 14 16 38 9 6 12 15 34 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).......................................................... 40,853 2,431 9,485 2,286 3,429 3,711 2,307 7,295 1,504 731 1,552 1,345 4,777 Collateral held against notes out­ standing: Gold certificate account........................ 6,695 450 1,000 483 600 740 450 1,400 305 127 225 180 735 Eligible paper............................................. 1 U.S. Govt, securities............................... 36,306 2,016 8,900 2,000 3,000 3,035 2,050 6,150 1,310 615 1,400 1,230 4,600 Total collateral..................................... 43,002 2,466 9,900 2,484 3,600 3,775 2,500 7,550 1,615 742 1,625 1,410 5,335 1 After deducting $119 million participations of other F.R. Banks. 3 After deducting $85 million participations of other F.R. Banks. 2 See note 2 to table at bottom of p. 876. 4 After deducting $195 million participations of other F.R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

800 FEDERAL RESERVE BANKS; BANK DEBITS MAY 1967 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1967 1967 1966 Apr. 26 Apr. 19 Apr. 12 Apr. 5 Mar. 29 Apr. Mar. Apr. Discounts and advances—Total.............................................. 481 213 920 539 39 54 42 452 Within 15 days.............................................................................. 453 189 898 517 26 24 32 422 16 days to 90 days...................................................................... 28 21 22 20 3 30 10 30 91 days to 1 year ................................................................ 3 2 10 * Acceptances—Total........................................................................ 187 105 124 158 100 166 110 159 Within 15 days.............................................................................. 139 60 79 108 48 119 56 91 16 days to 90 days..................................................................... 48 45 45 50 52 47 54 68 U.S. Govt, securities and Federal agency obligations—Total................................................................. 45,383 45,385 44,982 45,308 44,529 45,470 44,921 40,713 Within 15 daysL ........................................................................ 2,304 2,347 1 ,692 1,739 1 ,445 7,836 928 7,326 16 days to 90 days...................................................................... 12,174 12,134 12,706 13,014 12,561 6,293 13,183 4,374 9t days to 1 year......................................................................... 19,389 19,388 19,068 19,078 19,114 19,825 19,401 14,026 Over 1 year to 5 years.............................................................. 10,183 10,183 10,183 10,168 10,133 10,183 10,133 13,297 Over 5 years to 10 years........................................................ 898 898 898 885 866 898 866 1,305 Over 10 years............................................................................... 435 435 435 424 410 435 410 385 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o e u rl n in d g s B fr e a lg n i c a s n C d a o n l a la d r i s an F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese N gu l e a il n t d h d e e s r r s ­ f S ra w n is c s s 1966—-May...................................... 364 163 53 2 I 116 2 1 3 24 482 271 54 2 I 124 1 1 3 24 July....................................... 702 566 54 2 1 75 2 1 * 2 Aug...................................... 687 476 54 2 1 150 1 1 2 Sept....................................... 742 587 54 20 1 76 1 1 * 3 Oct................. 783 622 54 20 1 76 6 1 3 Nov. ................ 709 570 54 2 1 76 1 1 * 3 Dec................. 875 594 55 2 216 3 * 3 1967—Jan......................................... 397 319 55 2 1 15 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 l t la a rs c ) counts1 Turnover of demand deposits Period S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S th A e ’s rs2 T S o N ( M t e a . x S Y l c A . l 2 ) . 3 ’s 2 S o M 2 th S 2 e 6 A r ’s S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S th A e ’s rs2 T S o N ( M e ta . x S Y l c A . l 2 . ) 3 ’s 2 S o M 2 th 2 S e 6 A r ’s 1966—Mar....................................... 5,784.6 2,411.7 1,313,6 3,372.9 2,059.3 51.3 106.0 48.5 37.6 32.9 Apr........................................ 5,858.0 2,501.5 1,281.6 3,356.5 2,074.9 52.7 111.8 47.9 37.6 33.2 May...................................... 5,909.2 2,513.5 1,326.8 3395.7 2,068.9 52.6 109.5 49.7 37.8 32.8 June...................................... 5’908.3 2,494,1 1,327.0 3,414.2 2,087.2 52.2 107.3 50.4 38.3 33.1 July....................................... 5,868.3 2,394.1 1,343.6 3,474.2 2,130.6 52.9 106.9 51.3 39.1 34.0 Aug....................................... 6,092.4 2’597.0 1,357.1 3’495.4 2’138.3 54.0 111.9 51.5 39.0 33.9 Sept....................................... 6,105.2 2,559.1 1,387.2 3,546.1 2,158.9 54.2 111.4 52.1 39.4 34.3 Oct......................................... 6,065.4 2,551.8 1,364.9 3,513.6 2,148.7 54.0 111.2 52.2 39.6 34.3 Nov......................... 6’078.5 2,'566.6 1.373.8 3,511.9 2'138.1 54.6 111.3 52.5 39.6 33.9 Dec........................................ 6'406.5 2,844.6 1,405.1 3’561.9 2,156.8 56.9 121.8 53.2 40.0 34.2 1967—Jan......................................... 6,409.1 2,847.3 1,362.2 3,561.8 2,199.6 57.2 124.7 50.9 39.4 34.8 Feb....................................... 6^294.9 2^724.7 1,389.5 3’570.2 2,180.7 55.6 119.4 52.6 39.4 34.2 Mar....................................... 6,315.9 2,756.6 1,386.8 3,559.3 2,172.5 54.8 117,2 51.2 39.1 33.9 Apr....................................... 6’,553.5 2,864.0 1,451.4 3,689.5 2', 238. 1 57.7 123.0 54.2 40.8 35. 1 1 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 series, see Mar. 1965 Bulletin, p. 390. All data shown here are revised. For description of revision, see Mar. 1967 Bulletin, p. 38. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 U.S. CURRENCY 801 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ 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 1'404 1,048 65 2J10 6,275 9^19 8,850 2^548 5’070 428 782 5 17 1950............................ 27,741 19 305 1,554 1,113 64 2349 5,998 8,529 8,438 2^422 5’043 368 588 4 12 1955............................ 31358 22321 1'927 1312 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 1311 85 2,216 6^672 10’476 9,'326 2,803 5’913 261 341 3 5 I960............................ 32’869 23'521 2,427 1333 88 2,246 6,691 10^536 9^348 2,815 5'954 249 316 3 10 1961............................ 33^918 24,388 2382 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962............................ 35’338 25,356 2,782 1,636 97 2,375 7,071 11’395 9,983 2,990 6,448 240 293 3 10 1963............................ 37,692 26,807 3,030 1’722 103 2,469 7’373 12'109 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............................ 42^056 29’842 4,027 1,908 127 2,618 7,794 13'369 12,214 3,540 8J35 245 288 3 4 1966—’Mar............... 41,469 29,323 4,152 1,824 129 2,496 7,607 13,11612,147 3,478 8,136 242 285 3 4 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............. 42,102 29,868 4'231 1,876 133 2,555 7,732 13*34212,234 3’507 8’196 241 284 3 4 June............. 42'554 30,228 4'264 1,884 135 2,570 7,805 13,569 12,326 3,542 8,254 241 283 3 4 July............... 42’708 30311 4,285 1380 136 2,550 7,770 13,690 12,397 3^560 8; 307 240 283 3 4 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 42^802 30’318 4,342 1,899 138 2,551 7,730 13,659 12,483 3,562 8,392 239 283 3 4 Oct............... 43,113 30356 4380 1,926 137 2,583 7,785 13,745 12,556 3,572 8; 455 239 283 3 4 Nov....... 44,245 31,499 4,447 1,996 137 2,684 8,076 14,159 12,747 3,632 8,583 240 285 3 4 Dec....... 44’663 31,695 4'480 2351 137 2,756 8; 070 14,201 12,969 3,700 8,735 24! 286 3 4 1967—Jan................ 43,363 30332 4,461 1 ,939 137 2,599 7,730 13,667 12,831 3,629 8,673 239 283 3 4 Feb................ 43,585 30,'758 4381 1,933 137 2,612 7^840 13,755 12,827 3; 622 8; 677 239 282 3 4 Mar.............. 43^83 30353 4318 1,939 137 2,599 7,801 13,759 12,831 3,621 8^83 239 281 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 Total out­ Held by standing, As security For F.R. 1967 1966 Kind of currency Mar. 31, against F.R. Banks 1967 gold and Treasury Banks and silver cash and Agents Mar. Feb. Mar. certificates Agents 31 28 31 Gold........................................................................................................ 13,109 (12,611) 2498 Gold certificates....................... ................................ (12,611) 3 12,610 1 Federal Reserve notes................................................................. 40,899 128 2,644 38,127 38,164 36,308 Treasury currency Total............................................................ 6,489 (558) 688 344 5,456 5,421 5,161 Standard silver dollars ............................................................. 485 3 482 482 482 Silver bullion ........................ ................................................ 682 555 127 Silver certificates.............................................................. (558) 1 9 548 551 609 Fractional coin4......................................................................... 4,908 550 322 4,036 3,999 3,670 United States notes................................................................... 323 8 13 302 300 296 Tn process of retirement 1....................................................... 92 3 88 89 104 Total—Mar. 31 1967 ................................................................ 5 60,497 (13,169) 1,315 12,610 2,989 43,583 Feb. 28’ 1967 ................................................................. 5 60,674 (13,188) 1,238 12,625 3,226 43,585 Mar. 31 1966 ................................................................. 5 59,098 (13,842) 898 13,203 3,528 41,469 i Outside Treasury and F.R. Banks, Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. 791. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $156 million reserve against United States notes and $228 are shown in parentheses. million gold deposited by and held for the International Monetary Fund. 3 Consists of credits payable in gold certificates: (1) the Gold Certificate Note.—Prepared from Statement of United States Currency and Coin Fund—Board of Governors, FRS; and (2) the Redemption Fund for F.R. and other data furnished by the Treasury. For explanation of currency notes. reserves and security features, see the Circulation Statement or the Aug. 4 Redeemable from the general fund of the Treasury. 1961 Bulletin, p. 936. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

802 MONEY SUPPLY; BANK RESERVES MAY 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 po o a s n n i e t d n t jus a te d d ­ 1 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 te d­ d 1 d d e e p m os a i n ts d 1 1960—Dec.................................................................. 141.1 28.9 112.1 72.9 144.7 29.6 115.2 72,1 4.7 1961—Dec................................................................... 145.5 29.6 116.0 82.7 149.4 30.2 119.2 81.8 4.9 1962—Dec................................................................... 147.5 30.6 116.9 97.8 151.6 31.2 120.3 96.7 5.6 1963—Dec................................................................. 153.1 32.5 120.6 112.2 157.3 33.1 124.1 111.0 5.1 1964—Dec.................................................................. 159.7 34.2 125.4 126.6 164.0 35.0 129.1 125.2 5.5 1965—Dec.................................................................. 167.2 36.3 130.9 146.9 172.0 37.1 134.9 145.2 4.6 1966—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 June................................................................. 171.1 37.4 133.7 2153.7 168.8 37.3 131.5 2154.1 6.3 July.................................................................. 169.6 37.7 131.9 155.3 167.9 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 Sept................................................................. 170.5 37.9 132,6 157.1 169.4 37.9 131.5 156.9 4.4 Oct................................................................ 169.6 38.0 131.7 156.8 170.1 38.1 132.1 1 56.6 4.8 Nov.. ............................................................ 169.2 38.0 131.2 156.8 171.0 38,5 132.5 155.6 3.7 Dec.................................................................. 170.3 38.3 132.1 158.0 175.2 39,1 136.2 156.3 3.5 1967—Jan................................................................... 169.6 38.5 131.1 160,5 174.6 38.4 136.2 160.0 4.2 Feb................................................................... 170.4 38.7 131.7 163.2 170.0 38.3 131.7 163.3 5.1 172.8 38.9 I 33.9 165.3 171.3 38.5 132.8 166.1 4 9 AprT............................................................ 172. 1 39.0 133.2 167.3 173.1 38.6 134.5 168.2 4.8 Week ending—• Mar. 1......................................................... 171.0 38.7 132.3 163.8 168,7 38.1 130.6 164.1 5.3 8......................................................... 172.0 38.9 133.0 164.4 170.0 38,7 131.3 165.0 4.2 15......................................................... 173.1 39.0 134. I 165.2 171.7 38.6 133.1 166.0 3.1 22......................................................... 172.6 39.0 133.6 165.6 173,0 38.6 i34.3 166.4 5 4 29......................................................... 173.6 39.1 134.5 166.0 170.7 38.4 1 32.3 167.0 6.9 Apr. 5......................................................... 173.4 38.9 134.6 166.5 172.4 38.5 133.9 167.5 4.9 ' 12......................................................... 173.0 39.1 134.0 167,0 173.4 38.9 134.5 168.0 3.9 19”............................................ 171.5 39.1 132.5 167.5 174.6 38.7 135.9 168.2 3.6 26*...................................................... 171 .0 39.0 132,0 167.7 172.3 38.4 133.9 168.3 6.0 1 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 reserves 1 Deposits subject to Member bank reserves! Deposits subject to reserve requirements reserve requirements Period Non- Time Pri- U.S. Non- Time Pri- U.S. Total bor- Total and vate Govt. Total bor- Total and vate Govt. rowed savings demand demand rowed savings demand demand 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—-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 JuneJ... 23.52 22.84 23.17 244.2 c126.4 113.5 4.3 23.42 22.75 23.10 243.9 127.0 111.5 5.5 July. ... 23.73 22.96 23.32 246.1 128.0 112.4 5.6 23.73 22,96 23.32 246.6 128.4 111,0 7.2 Aug........ 23,33 22.66 23.03 245.4 129.0 112.1 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 3.8 Oct.......... 23.26 22.53 23.01 244.6 128.7 111.6 4,3 23.33 22.60 23.03 244.6 128.4 112.0 4.3 Nov......... 23.23 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 Dec......... 23.25 22.66 22.96 244.4 129.4 112,0 2.9 23.83 23.27 23.44 247.1 127.9 116.1 3.0 1967—Jan.......... 23.58 23.15 23.21 247.7 131.5 111.4 4.8 24.08 23.69 23.70 250.9 131.1 116.1 3.7 Feb.......... 23.85 23.51 23.49 250.7 133.7 112.1 4.9 23.71 23.35 23.35 250.2 134.0 111.8 4.5 Mar. , .. 24.30 24.05 23.79 254.0 135.3 113.9 4.8 24,04 23.84 23.60 253.2 136.3 112.6 4.3 Apr?'... 24.34 24. 18 23.97 256.9 137.2 113.2 6.4 24.22 24.09 23.90 256,3 137.9 114.2 4.3 1 Back data on member bank reserves adjusted to eliminate effects of 3 Effective June 9, 1966, balances accumulated for repayment of per­ changes in reserve requirement percentages. Series reflect percentage re­ sonal loans were eliminated from time deposits for reserve purposes. serve requirements made effective Sept. 15, 1966; series will reflect per­ Time and total deposits were thereby reduced by an estimated $850 mil­ centage reserve requirements made effective March 16, 1967, when com­ lion; this reduced member bank reserves by $35 million. plete deposit data are available. Note.—For further explanation of these data, see announcement in 2 Deposits subject to reserve requirements include total time and sav­ the October 1966 Bulletin, p. 1460. Back data for the period 1948 to date ings deposits and net demand deposits as defined by Regulation D. Pri­ may be obtained from the Banking Section, Division of Research and vate demand deposits include all demand deposits except those due to the Statistics, Board of Governors of the Federal Reserve System, Washing­ U.S, Govt., less cash items in process of collection and demand balances ton, D.C. 20551. due from domestic commercial banks. Averages of daily figures. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 BANKS AND THE MONETARY SYSTEM 803 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date c u u ry r­ U.S. Government securities H it a ie b s il- Total Ca a p nd ital Gold rency Other and deposits misc. s o t i a n u n g t d ­ ­ Total n L e o t a n L s , 2 Total s C a a v o n i m n d g I s . R F B e e a s d n e e k r r v s a e l Other r s it e ie cu s ­ 2 ca n p e it t al. cur a r n e d ncy co n a u e c n - t ts, 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 3t,U8 1965—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—Apr. 27....................... 13,600 5,800 401,400 246,900 102,400 60,800 40,700 900 52,100 420,800 383,300 37,500 May 25....................... 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 54,452 430,187 391,731 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......................... 13,300 6,000 408,800 252,400 102,100 58,800 42,500 800 54,400 428,200 387,600 40,500 Sept. 28......................... 13,300 6,100 410,700 254,000 102,000 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 p..................... 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. 28 t*..................... 13,200 6,300 419,100 259,300 105,600 60,400 43,900 1 ,200 54,200 438,600 396,900 41,700 1967—Jan. 25 p..................... 13,200 6,400 418,200 257,100 105,900 60,500 44,200 1,200 55,300 437,800 396.400 41,300 Feb. 22*................. 13,100 6,400 420,200 256,300 107,100 61,100 44,700 1,400 56,800 439,700 396,300 43,400 Mar. 29 rP..................... 13,100 6,500 425,600 259,800 107,400 62,200 44,500 700 58,300 445,200 402,900 42,300 Apr, 26p....................... 13,100 6,600 429,600 262,200 107,200 60,300 45,400 1,500 60,200 449,300 406,100 43,200 DETAILS OF 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 s n c i k r d ­ y s e d ju e m s D p a t a o e d e n s d ­ ­ d i t s 4 Total o b r u C e a t n u s n c i k r d ­ y s e d ju m e s D p a t a e o d e n s d ­ ­ 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 u v n i t k n u s g a s l 5 S P a S t o e v y s m i s n ta ­ g l s e n F i e g o t n r­ 6 , T h c i r u n o a e g r s l a y d s h s ­ ­ s b c a a a o v A n n i m n d t k g b s s B F A a .R n t k . s 1947—Dec. 31.. . . 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 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—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—Apr. 27.... 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 May 25.... 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.... 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.... 168,500 36,900 131,600 166,900 37,100 129,900 211,200 157,200 53,800 200 1 ,900 1,100 5,000 1,600 Sept. 28.... 167,200 36,700 130,500 166,100 36,800 129,300 211,300 156,900 54,200 200 1,800 1,100 6,200 1,300 Oct. 26 J'. . 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 p .. 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 p. . 170,000 37,500 132,500 175,200 38,300 136,900 213,000 157,700 55,200 100 1,900 1,200 5,400 200 1967—Jan. 25*’... 168,500 37,800 130,700 170,700 37,300 133,400 217,400 161,700 55,600 100 1,800 1,200 4,900 400 Feb. 22 p. . 167,300 38,200 129,100 166,500 37,700 128,700 220,000 164,000 55,900 100 1 ,800 1,200 6,300 400 Mar. 29 r>’.. 172,000 38,000 134,000 169,500 37,600 131,900 224,000 167,200 56,700 100 1,700 I ,300 5,700 700 Apr, 26p, ,. 170,100 38,000 132,100 170,200 37,700 132,500 225,300 168,500 56,800 100 1,700 1 ,400 6,600 900 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 fl 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. 807. 2 See note 2 at bottom of p. 807, 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 4 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. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

804 COMMERCIAL AND MUTUAL SAVINGS BANKS MAY 1967 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 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 v . t . Oth 2 er a C ss a e s t h s 3 c c b o a i a l l a u i i p n a t c n i i d ­ e ­ t t a s s l * Total 3 m D a e n ­ d Time U.S D . ema O n t d her T l im >5 e r B in o o g w r s ­ ­ c c T a o a o p u c t i n a t ­ a t l s l N b b a u o n e m f k r s ­ 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 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53.105 6611,948 14,714 1965—Dec. 31.................. 362,320246,946 65,01650,35761,916435,483 385,196 18,426 1 ,009 5,532 160,847 199,381 4,56434,935 14,309 1966—Apr. 27.................. 364,280251,380 60,790 52,11057,280432,790380,280 15,560 1,090 5,030 152,700205,900 4,94035,380 14,307 May 25. ...... . 365,550253,890 58,89052,770 55,030431,960 377,630 14,920 1,080 7,780 146,180207,670 5,61035,550 (4,307 June 30................. 371,684258,607 58,625 54,45260,978444,807391,731 17,034 1,099 11,005 153,907 208,687 4,44436,071 14,307 July 27................... 370,240258,030 57,83054,38057,280439,560382,560 15,480 1,090 6,180 149,370210,440 7,23035,830 14,305 Aug. 31................... 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.................. 373,370260,000 58,69054,68056,110441,490383,210 16,310 I ,060 6,000148,490211 ,350 7,05036,330 14,294 Oct. 26*................ 372,700259,780 58,47054,45057,780442,250384,150 16,020 1,010 4,720 151,490210,910 6,97036,420 14,294 Nov. 30*,............. 374,310261,520 59,15053,64061,700448,040387,780 17,110 900 3,810 155,530210,430 7,95036,770 14,288 Dec. 28*................ 380,990266,400 60,37054,22065,690458,630398,330 18,140 940 5,130 161,070213,050 8,27036,860 14,274 1967—Jan. 25»>................ 379,340263,600 60,46055,28059,670450,990392.600 16,130 1,110 4,620 153,250217,490 7,01036,910 14,266 Feb. 22*................ 380,390262,500 61.08C56,81061,350453,920394,470 16,730 1,180 6,110 150,280220,170 6,74037,140 14,260 Mar. 29’ *............. 386,510265,930 62,24058,34058,550457,330398,700 16,440 1,340 5,440 151,300224,180 6,270 37,380 14,264 Apr. 26*................ 388,690268,140 60,31060,24061,730462,930403,980 16,640 1,340 6,380 154,140225,480 6,64037,490 14,262 Commercial banks: 1941—Dec. 31.................. 50,746 21,714 21,808 7,22526,551 79,104 71,283 10,982 44,349 15,952 23 7,173 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. 316............... 116,284 38,057 69,221 9,00637,502 155.377 144,103 12,792 240 1,343 94,367 35.360 65 10,059 14,181 1965—Dec. 31.................. 306,060201,658 59,54744,85560,899 377,264332,436 18,426 1 ,008 5,525 160,780 146,697 4,47230,272 13,804 1966—Apr. 27.................. 307,110205,180 55,45046,48056,430373,780327,120 15,560 1,090 5,030 152,650 152,790 4,94030,670 13,802 May 25.................. 308,120207,430 53,55047,14054,180 372,710324,360 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 60,013 385,393338,004 17,034 1,098 10,998 153,846 155,029 4,35331,309 13,802 July 27.................. 312,380211,050 52,72048,61056,420379,790328,840 15,480 I ,090 6,180 149,320 156,770 7,23031,090 13,801 Aug. 31................. 313,980211,820 53,73048,43055,530380,630329,010 15,930 1,130 4,720 149,780 157,450 7,17031,360 13,801 Sept. 28.................. 314,920 212,500 53,61048,81055,260381,160328,940 16,310 1,060 6,000 148,440 157,130 7,05031 ,510 13,790 Oct. 26’................ 314,120211,980 53,54048,60056,980381,840329,700 16,020 1 ,010 4,720 151,440 156,510 6,97031,630 13,789 Nov. 30*. . 315,570213,460 54,29047,82060,890387,450333,260 17,110 900 3,810 155,480 155,960 7,95031,930 13,784 Dec. 28*................ 321,940218,100 55,60048,24064,750397,620343,100 18,140 940 5,130 161,010 157,880 8,27032,000 13,770 1967—Ian. 25»................ 319,800215,040 55,78048,98058.700389,420336,950 16,130 1,110 4,620153,190 161,900 7,010 32,050 13,762 Feb. 22*............... 320,360213,670 56,38050,31060,310391,800338,480 16,730 1,180 6,110 150,220 164.240 6,74032,240 13,756 Mar. 29^. ...... 326,030216,820 57,60051,61057,410394,630 341,960 16,440 *1,340 5,440151,240 *167 500 6,27032,470 13,760 Apr.26 *............... 328,070218,580 55,93053,56060,630400,130347,140 16,640 1,340 6,380 154,080 168,700 6,64032,580 13,758 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 7,30432,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1965—Dec. 31.................. 251,577 169,800 44,992 36,78552,814313,384275,517 17,454 840 4,890 132,131 120,202 4,23424,926 6,221 1966—Apr. 27................. 252,103 172,702 41,37038,031 49,323310,342270,866 14,795 918 4,617 125,479125,057 4,55425,239 6,199 May 25.................. 252,528 174,354 39,68638,48847,548 309,186268,286 14,198 916 6,858 120,016126,298 5,11425,345 6,198 June 30................. 257,767 178,257 39,942 39,56952,853 320,350280,339 16,164 928 9,979 126,572 126,696 3,98525,678 6,194 July 27.................. 255,819 177,210 39,072 39,53749,749315,068271,464 14,630 923 5,523 122,416127,972 6,80525,531 6,184 Aug. 31.................. 257,315 178,023 39,98439,30848,650315,639271,521 15,047 963 4,202 122,874 128,435 6,63325,766 6,175 Sept. 28 257,809 178,421 39,807 39,581 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 39,65239,32750,210316,324271,653 15,120 843 4,309 124,263 127,118 6,571 25,942 6,163 Nov. 30.................. 258,041 179,106 40,355 38,58053,564321,185 274,676 16,188 730 3,448 127,757 126,553 7,45926,189 6,158 Dec. 28.................. 263,673 183,095 41,618 38,96057,072330,265283,304 17,175 772 4,673 132,514 128,170 7,91426,223 6,150 1967—Jan. 25.................. 261,583 180,244 41,773 39,56651,387 322,412277,460 15,228 937 4,161 125,481 131,653 6,63826,285 6,137 Feb. 22................. 262,135 178,958 42,40440,773 52,973324,753279,014 15.828 1,006 5,506123,124 133,550 6,42626,453 6,130 Mar. 29.................. 267,086181,604 43,54541,93750,276327,040281,903 15,547 *1,172 4,857 124,096 *136,231 6,04426,639 6,129 Apr. 26*,............. 268,466 182,821 42,001 43,64453,487 331,864286,486 15,742 1,172 5,899 126,642 137,031 6,40026,749 6,127 Mutual savings banks: 1941—Dec. 31........ 10,379 4,901 3,704 1,774 793 11,804 10,533 .................... 10,527 1,241 548 1945—Dec. 31.................. 16,208 4,279 10,682 1,246 609 17,020 15,385 1 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—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—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 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,J 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. .. ..... 59,050 48,300 4,770 5,980 940 61,010 55,230 60 55,170 4,860 504 1967—Jan. 25................. 59,540 48,560 4,680 6,300 970 61,570 55,650 60 55,590 4,860 504 Feb. 22.. ............ 60,030 48,830 4,700 6,500 1,040 62,120 55,990 60 55,930 4,900 504 Mar, 29^................ 60,480 49,110 4,640 6,730 I , 140 62,700 56,740 60 56,680 4,910 504 Apr. 26»............... 60,620 49,560 4,380 6,680 1,100 62,800 56,840 60 56,780 4,910 504 For notes see p. 807. 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MAY 1967 COMMERCIAL AND MUTUAL SAVINGS BANKS 805 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 3 Other Cla a s n s d o d f a b te ank Total Lo i a n 2 s G U o .S vt . . Oth 2 er a C ss a e s t h s 3 c c b o a i a a l l u i p i n t a c n i i d e ­ t ­ t a s s l 4 Total3 m D a e n ­ d Time G U o . D S vt . e . ma O n t d her Time1 r B in o o g w r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l b N a b o u n e m f k r s ­ 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 6339 32,887 30J21 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—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—’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 6,192 12,930 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 ,756 18,331 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 1967—Jan. 25. 45,756 35,212 4,775 5,769 11,545 60,042 47,414 5,003 551 848 22,826 18,186 2,013 5,323 12 Feb. 22. 45,474 34,396 5,115 5,963 12,200 60,537 47,404 4,987 601 1,065 22,547 18,204 2,280 5,443 12 Mar. 29. 46,506 35,084 5,291 6,131 11,237 60,533 48,061 4,966 736 998 22,862 18,499 1,920 5,450 12 Apr. 26i’ 46,656 35,541 4,766 6,349 12,756 62,311 49,602 5,287 726 1,768 23,630 18,191 2,163 5,485 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 C217 72 4,201 913 426 14 1965—Dec. 31 11,455 8,219 1 ,700 1,536 2,'426 14,290 12,475 M37 39 345 5; 656 4,999 355 1,132 11 1966—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 11 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 11 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 H 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 1967—Jan. 25 11,648 8,316 1,712 1,620 2,673 14,779 11,705 1,169 16 191 5,226 5,103 1,072 1,196 11 Feb. 22. 11,816 8,428 1,730 1,658 2,609 14,879 11,978 1,268 14 285 5,192 5,219 559 1,194 11 Mar. 29. 12,266 8,584 2,039 1,643 2,733 15,452 1.7,223 1,244 11 283 5,184 5,501 951 1,193 11 Apr. 267’ 12,127 8,475 1,886 1 ,766 2,576 15,176 12,345 1 ,182 11 370 5,264 5,518 702 1,202 11 Other reserve city:7*8 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 6318 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—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—Apr. 27. 92,397 66,743 12,583 13,071 20,021 115,509100,917 6,896 194 1,720 44,751 47,356 2,225 9,167 170 May 25. 92,355 66,817 11,832 13,706 19,064114,547 100,037 6,702 193 2,824 42,365 47,953 1,990 9,200 170 June 30. 93,831 67,779 12,182 13,869 20,764 118,152 103,985 7,153 215 3,968 44,51948,131 1 ,756 9,297 170 July 27. 93,519 67,738 11,791 13,990 20,070 116,873 101,489 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 11,718 13,822 19,590 116,951 101,100 7,056 281 1,921 43,26248,580 2,821 9,368 170 Oct. 26, 93,627 68,231 11,760 13,636 20,426 117,442101,512 7,158 252 1,630 44,06648,406 2,999 9,387 170 Nov. 30, 94,654 68,959 12,237 13,458 20,732 118,882 102,611 7,918 223 1,074 45,21448,182 2,807 9,453 170 Dec. 28 96,190 69,831 12,916 13,443 22,305 122,007 105,902 7,934 253 1,731 46,94749,037 2,782 9,441 169 1967—Jan. 25.. 95,162 68,491 12,875 13,796 20,283 118,870 103,332 7,065 306 1,752 43,83050,379 2,807 9,465 168 Feb. 22.. 95,797 68,077 13,199 14,521 21,113 120,402 104,520 7,598 327 2,336 42,978 51,281 2,957 9,481 168 Mar. 29. 97,875 68,880 13,724 15,271 19,706 121,135 105,418 7,387 e361 1,825 43,544 <=52,301 2,725 9,589 167 Apr. 26p 97,913 68,684 13,065 16,16421,543 123,100 107,154 7,290 371 2,334 44,52252,637 3,050 9,642 166 Country member banks:7*8 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—Dec. 31 103,362 63,338 23,735 16,288 17,366 123,227 110,738 2,371 74 1,501 55,11851,675 343 9,673 6,027 1966—Apr. 27, 104,208 64,371 22,891 16,946 15,782 122,524109,499 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 17,944 16,836 125,301 112,170 1,912 64 3,052 52,785 54,357 416 10,050 6,001 July 27. 105,904 66,352 21,831 17,721 15,796124,552 111,141 1,862 74 1,963 52,03755,205 850 9,933 5,991 Aug. 31 106,086 66,270 21,994 17,822 16,086124,923 111,204 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 15,542 125,209111,642 2,380 74 1,659 51,56255,967 737 10,113 5,978 Oct. 26, 107,325 66,983 22,225 18,117 15,880 125,916112,276 1 ,981 74 1,244 52,64956,328 798 10,161 5,970 Nov. 30, 107,688 67,355 22,289 18,044 17,035 127,416113,382 2,019 74 1,084 53,833 56,372 984 10,252 5,965 Dec. 28, 109,139 68,643 22,373 18,123 17,790 129,625 115,839 2,117 74 1,380 55,32256,946 718 10,311 5,958 1967—Jan, 25, 109,017 68,225 22,411 18,381 16,886 128,721 115,009 1,991 64 1,370 53,59957,985 746 10,301 5,946 Feb. 22. 109,048 68,057 22,360 18,631 17,051 128,935 115,112 1,975 64 1,820 52,407 58,846 630 10,335 5,939 Mar. 29. 110,439 69,056 22,491 18,892116,600 129,920 116,201 1 ,950 64 1,751 52,50659,930 448 10,407 5,939 Apr. 26^ 111,770 70,121 22,284 19,365 16,612 131,277 117,385 1,983 64 1,427 53,22660,685 485 10,420 5,938 For notes see p. 807. 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806 COMMERCIAL AND MUTUAL SAVINGS BANKS MAY 1967 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 3 Other b c C a a la n ll s k d s a a o t n e f d Total Loans as C s a e s ts h 3 c b a i a l l i p i n a ti i d e ­ ta s l Total3 Demand r B in o o g w r s ­ ­ c c T o a a o u p c t n i ­ a ta t l s l b N a b o u n e f m k r s ­ 1»2 G U o .S vt . . Oth 2 er cou ac n ­ ts2 m D a e n ­ d Time U.S. Other Ti 1 m .5 e Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,554 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 13,383 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 62,723 34,594 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 62,499 38,320 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 4,32529,827 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 4,12630,873 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 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 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 33,40521,312 34,064 190,289 169,615 10,521 21 1 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 4,811 State member: 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 t5.312 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. 3!.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,59834,680 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 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,52825,882 91 4,912 7,320 1966—June 30.. 54,355 32,461 13,178 8,716 6,636 62,237 55,937 597 93 993 26,26727,987 141 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. 31 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. 3L. 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 1 ,958 1,789 1,789 164 52 1945—Dec. 31.. 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 ............. 1 2 12 12,192 1,252 194 1963—Dec. 20.. 41,664 32,300 4,324 5,041 722 43,019 38,657 1 5 29238,359 38 3,572 330 1964—Dec. 31.. 45,358 36,233 4,110 5,015 893 47,044 42,751 2 7 32642,416 20 3,731 327 1965—Dec. 31.. 48,735 39,964 3,760 5,010 904 50,500 45,887 1 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 1,690 552 111 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

MAY 1967 COMMERCIAL BANKS 807 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Securities Securities Period Totali, 2 Loans1,2 Total i,2 Loans1,2 G U o .S vt . . Other 2 G U o v S t . . Other2 1958—Dec. 31................................................................................... 181.2 95.6 65.1 20,5 184,4 97.5 66.4 20.6 j 959 Dec. 31................................................................................... 185.9 107.5 57.9 20,5 189 5 110.0 58.9 20,5 I960—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—bee. 31................................................................................... 227.9 134.1 64.5 29^2 233,6 137.9 66.4 29.3 1963—bee. 31.................................................................................. 246.2 149.7 61.5 35.0 252,4 153.9 63.4 35.1 1964—bee. 31.................................................................................. 267.2 167.4 61.1 38.7 273.9 172.1 63.0 38.8 1965 bee. 31................................................................................... 294.4 192.0 57.7 44.8 301.8 197.4 59.5 44.9 1966 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. 31?............................................................................... 310.8 206.6 56.1 48.1 307.7 205.5 53.7 48.4 Sept. 28?................................................................................ 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”3.............................................................................. 310.7 208.2 54.3 48.3 318.5 214.0 56. 1 48.4 1967 Jan. 25?................................................................................ 314,5 211.3 53.8 49.5 313.9 209.1 55,8 49.0 Feb 22 ?............................................................................... 316.2 210.7 54.9 50.7 314.7 208.0 56.4 50.3 Mar. 29?................................................................................ 321.5 212.1 57.6 51.9 320.2 211.0 57.6 51.6 Apr. 26?................................................................................. 323.8 214. 1 56.4 53.3 322.5 213.0 55.9 53.6 1 Adjusted to exclude interbank loans. . 3 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. 952-55. 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...,.1...5..0.................A....l.l.. member (cont.) Insured......................................................................................................... 1,150 Other reserve city.................................................................................. 338 National member..................................................................................... 678 Country....................................................................................................... 532 State member........................................................................................... 193 All nonmember.......................................................................................... 280 All member........................................................................8...7..0....................Insured........................................................................................................ 279 New York City......................................................................................... Noninsured............................................................................................. 1 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. 806, or from “Loans” and “Time deposits, as follows: in the tables on pp. 803-05; in the table at the top of this IPC” in the tables on pp. 808-09. page; and in the tables on pp. 810-13 (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. 804-806. 8 Beginning with May 18, 1964, one New York City country bank with loans and investments of $1,034 million and total deposits of $982 million 1 See table (and notes) above, Deposits Accumulated at Commercial was reclassified as a reserve city bank. Beginning with May 13, 1965 Banks for Payment of Personal Loans. (Toledo, Ohio), reserve city banks with total loans and investments of 2 Beginning June 30, 1966, loans to farmers directly guaranteed by $530 million and total deposits of $576 million were reclassified as country CCC were reclassified as securities, and Export-Import Bank portfolio banks. fund participations were reclassified from loans to securities. This reduced “Total loans” and increased “Other securities” by about $1 billion. Note.—Data are for all commercial and mutual savings banks in the “Total loans” include Federal funds sold, figures for which are shown United States (including Alaska and Hawaii, beginning with 1959). For separately for commercial hanks on the following two pages. definition of “commercial banks” as used in this table, and for other Reciprocal balances excluded beginning with 1942. banks that are included under member banks, see Note, p. 643, May 1964 4 Includes other assets and liabilities not shown separately. BuLI ETIN. s Figures for mutual savings banks include relatively small amounts Comparability of figures for classes of banks is affected somewhat by of demand deposits. Beginning with June 1961, also includes certain changes in F.R. membership, deposit insurance status, and the reserve accounts previously classified as other liabilities. classifications of cities and individual banks, and by mergers, etc. 6 Beginning with Dec. 31, 1947, the series was revised; for description, Data for national banks for Dec. 31. 1964 have been adjusted to make see note 4, p. 587, May 1964 Bulletin. them comparable with State bank data. 7 Regarding reclassification of New York City and Chicago as reserve Figures are partly estimated except on call dates. cities, see Aug. 1962 Bulletin, p. 993. For various changes between For revisions in series before June 30, 1947, see July 1947 Bulletin, reserve city and country status in 1960-63, see note 6, p. 587, May 1964 pp. 870-71. Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

808 COMMERCIAL BANKS MAY 1967 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments Class of lo T a o n t s a l 1 Fed­ Com­ o p s r u e r c c c F a u h o r r a r it r y s i e i i n n s g g in f s in ti a t T u n o t c io i . a n l s Other, U.S s . e G cu o r v it e ie rn s m 5 ent State bank and and eral mer­ Agri- Real to and Other call date invest­ funds Total cial cul- es­ in­ Other local securments 2»3 and tur- To tate di­ 4 govt, rities4 in­ al 4 bro­ vid- Bills secu­ dus­ kers To Banks Others uals2 Total and Notes Bonds rities trial and others certifi­ 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.. 254,162 156,00652,9477,4705,353 2,509 3,605 9,47939,05634,5504,03463,196 12,717 22,41528,06529,7865,173 1964—Dec. 31.. 277,376 175,58960,2177,505 5,5422,843 3,491 10,91343,67539,8095,15262,991 13,377 19,03930,57433,5335,263 1965—Dec. 31.. 306,060 2,103 199,55571,4378,2125,258 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 77,2458,488 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 9,2141,450 614 662 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 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,0121,610 823 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 52,7437,4445,321 2,476 3,594 9,41538,86134,383 4,01562,723 12,601 22,31627,80629,559 5,035 1964—Dec. 31.. 275,053 174,23459,7467,4825,355 2,794 3,419 10,81243,43639,6275,11262,499 13,275 18,93930,285 33,2945,026 1965—Dec. 31.. 303,593 2,064198,04570,8878,191 5,088 3,172 2,093 13,14849,02645,2905,155 59,120 13,134 13,233 33,85838,4195,945 1966—June 30.. 312,982 2,061 209,52776,7258,4705,2223,222 1,929 13,77351,59947,5065,15253,111 9,174 12,38932,70940,3687,914 Member, total: 1941—Dec. 31.. 43,521 ............. 18,021 8,671 972 594 598 39 3,494 3,(53 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 16,9621,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1963—Dec. 20.. 210,127 131,71247,4034,6595,1242,136 3,439 8,87531,00927,9083,76549,342 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 15,23823,54828,3743,715 1965—Dec. 31.. 251,577 1,861 167,93963,9795,0994,915 2,714 2,008 12,47538,98836,4184,83244,992 9,441 10,10626,36732,5884,198 1966—June 30.. 258,638 1,772 177,355 69,3575,2445,0362,717 1,861 13,06840,86237,9334,808 39,942 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 93 111 564 238 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 35,662 19,815 163,305 647 992 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 I 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.. 11,715 110 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 18,8621,219 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 15,62914,6721,857 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 i,j28 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 2,0061,262 1963—Dec. 20.. 87,316 50,023 12,831 3,374 708 496 966 1,59116,11413,951 91724,797 4,395 8,531 11,871 10,3852,111 1964—Dec. 31.. 93,759 55,733 14,5563,493 830 599 710 1,73017,96415,899 1,04724,341 4,209 7,206 12,925 11,531 2,154 1965—Dec. 31.. 103,362 905 62,433 16,478 3,840 650 698 174 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 7,458 3,113 343 516 151 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 5 Beginning with Dec. 31, 1965, components shown at par rather than Banks for Payment of Personal Loans, p. 807. 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

MAY 1967 COMMERCIAL BANKS 809 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n a ll s k d s a a o n te d f s B F w e R a r . i n v R e th e k ­ . s s r C c e a o n n u i c d r n ­ y b m a w a B d n e n c i a o s t k e h l ­ t ­ s s ic 6 ju m p s D o d a t a s e e d e n i d - ­ t ­ d s '? D In o t ­ erba F nk or­ G U o .S vt . , S lo a t c n a a d te l C c o a f e i e e n f r f r d d s i t ­ i ’ ­ IPC I b n a te n r k ­ G P U a o o n . s S v d t . t a , l S lo a t c n a a d te l IPC2 B in o g r s - c C o a t a u a c p n l ­ i t ­ s mestic6 eign8 govt. checks, Sav­ govt. etc. ings Total: 3 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 1,218 6,729 12,256 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 6,510 13,519 5,970 135,694 819 272 9,812 116,6352,67927,795 1965—Dec. 31.... 17,992 4,851 15,300140,936 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 10,998 14,931 6,692 132,222 1,098 231 12,634143,315 4,35331,309 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1963—Dec. 20.... 17,150 4,033 11,984125,615 13,900 1,177 6,712 12,175 4,429 124,098 443 269 7,853 102,6003,571 25,277 1964—Dec. 31... . 17,581 4,515 14,613 133,336 16,210 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 5,9t3 139,594 923 263 12,135 133,6864,32529,827 1966—June 30.... 18,094 5,219 13,093 132,311 15,304 1,457 10,972 14,827 6,603 131,409 1,021 231 12,584 (42,7384,12630,873 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 1,243.22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.. .. 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1963—Dec. 20.... 17,150 3,131 7,359 102,816 13,378 1,140 5,986 9,376 4,055 104,130 382 240 6,364 84,3263,49921,054 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 95,4252,481 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 10,041 109,925 4,23424,926 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 3,98525,678 New York City: 1941—Dec. 31.... 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1963—Dec. 20.... 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 76 449 10,920 1,438 3,984 1964—Dec. 31.... 3,730 278 180 17,729 4,112 976 1,486 441 2,940 20,515 436 74 677 13,534 1,224 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 18,118 1 ,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 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31.... 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 .......... 426 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 1,132 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 11,045 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 6,843 310 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 1960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection, status, and the reserve classifications of cities and individual banks, and 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

810 WEEKLY REPORTING BANKS MAY 1967 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (Ln millions of dollars) Loans 2 For purchasing To financial institutions or carrying securities Loans 1 Wednesday m in T lo a e v o a n e n t n d a s t s s t l ­ ! v s n t e a e i r r o l e t v u n ­ e o a s ­ f i C n m t c a r d o i n i e a u a m d r l s l ­ ­ ­ A t c u g u ra r l­ i l ­ G U c a T t s o i u e n . e o S v r ­ d s i . t - b , d r e o O a k c l e t s e t u i h e e r r r ­ s s s e i ­ r G c U t s T u o i . e e S v r o ­ s i . t ­ , o th O c e s t u t i r e e h s r ­ s e i­ r F e o ig r B n ­ ank m c m D s c t o e i i e o c a m s r ­ l ­ ­ ­ f P s c i a e n a o e N n t l a r c e s d s o n s . ., , n , ba O n th k er e R s e ta a t l e s in C m u s m o e ta n n e ­ 1 t r - g e F o i o g v n t r s ­ . o A th l e l r V se t a r i r o e l v u ­ n e a s ­ Large banks— Total 1966 Apr. 6............. 180,538 130,308 55,003 1,717 718 3,519 96 2,239 1,564 2,856 6,004 4,855 26,015 28,488 2,766 13............. 180,452 130,312 55,153 1,725 889 3,402 97 2,230 1,533 2,747 5,804 4,813 26,123 28’562 2 766 20............. 182,273 131,163 55,311 1,723 1,163 3,634 101 2,229 1,526 2,380 6,097 4,854 26,189 28,721 2,765 27............. 182,291 131,310 55,063 1,721 1,004 3,543 97 2,225 1,514 2,763 6,162 4,947 26,231 ................ 28,796 2,756 1967 Mar. 1............. 189,630135,483 60,730 1,822 1,699 2,950 76 2,074 1,401 3,134 5,883 4,059 27,168 15,796 1,102 10,553 2,964 8............. 187,776 133,514 60,865 1,833 646 2,730 64 2,063 1,398 2,993 5,491 3,979 27,124 15,739 1,103 10,445 2,959 15............. 193,874 137,413 61,966 1,837 1,810 3,164 64 2,063 1,441 3,393 6,127 4,007 27,147 15,751 1,085 10,529 2,971 22............. 192,912 136,947 62,126 1 ,816 1,537 3,110 68 2,063 1 ,401 3,293 5,960 4,019 27,148 15,716 1 ,097 10,562 2,969 29............. 192,271 136,233 61,962 1,824 1,467 3,017 68 2,090 1,395 3,206 5,590 4,022 27,131 15,761 1 ,082 10,584 2,966 Apr. 5............. 192,893 137,026 61,897 1,839 1,673 3,421 66 2,101 1,389 3,403 5,617 4,059 27,081 15,750 1,091 10,611 2,972 12............. 191,803 135,678 61,795 1 ,854 1,459 3,221 66 2,113 1,374 2,720 5,468 4,053 27,094 15,768 1 ,088 10,571 2,966 19............ 193,806 137,133 62,441 1,856 1,375 3,441 64 2,116 1,376 2,963 5,703 4,110 27,111 15,784 1,080 10,679 2,966 26............. 192,720 136,693 62,345 I ,857 1,175 3,210 68 2,150 1,353 3,050 5,632 4,176 27,139 15,799 1,093 10,607 2,961 New York City 1966 Apr. 6............. 42,753 32,638 17,939 22 370 2,149 18 676 818 1,240 1,887 1,253 3,011 4,026 771 13............. 42,254 32,157 18,012 22 426 2,018 18 667 813 801 1,824 1,251 3,035 4'041 771 20............. 42,972 32,415 17,970 21 701 2,296 16 667 795 390 2,000 1,227 3,048 4,056 772 27............. 42,882 32,515 17,867 20 404 2,191 16 660 799 900 2,042 1,278 3,051 ............... 4,059 772 1967 Mar. 1............. 44,175 33,728 20,544 16 648 1,620 8 579 749 728 1,919 1,045 3,033 1,246 709 1,727 843 8............. 43,225 32,731 20,678 16 282 1,457 9 579 751 462 1,674 1,021 3,024 1,241 713 1 ,665 841 15............. 45,766 34,453 21,123 15 794 1,773 9 573 795 555 1,960 1,024 3,032 1,242 699 1 ,700 841 22............. 45,208 34,335 21,139 15 469 1 ,790 10 575 740 949 1,816 1,027 3,026 1,234 695 1,691 841 29............. 44,520 33,754 21,037 15 448 1,753 11 604 726 723 1,634 1,034 3,011 1,234 691 1,675 842 Apr. 5............. 44,405 33,986 20,979 15 548 2,075 10 601 722 466 1,727 1,061 2,999 1,229 695 1,700 841 12............. 43,816 33,284 20,808 15 372 1,875 10 603 717 453 1,650 1,038 2,979 1,231 689 1,685 841 19............ 44,885 34,091 21,103 15 395 2,041 10 604 726 623 1,737 1,044 2,986 1 ,233 685 1,730 841 26............. 44,698 34,286 21,065 14 461 1 ,888 11 607 703 925 1,748 1,074 2,984 1,227 699 1,721 841 Outside New York City 1966 Apr. 6............. 137,785 97,670 37,064 1,695 348 1,370 78 1,563 746 1,616 4,117 3,602 23,004 24,462 1,995 13............. 138,198 98,155 37,141 1,703 463 1,384 79 1,563 720 1,946 3,980 3,562 23,088 24'521 1,995 20............. 139,301 98,748 37,341 1,702 462 1,338 85 1,562 731 1 ,990 4,097 3,627 23,141 24^665 1,993 27............. 139,409 98,795 37,196 1,701 600 1,352 81 1,565 715 1,863 4,120 3,669 23,180............... 24^737 E984 1967 Mar. 1............. 145,455 101,755 40,186 1,806 1,051 1 ,330 68 1 ,495 652 2,406 3,964 3,014 24,135 14,550 393 8,826 2,121 8............. 144,551 100,783 40,187 1,817 364 1 ,273 55 1,484 647 2,531 3,817 2,958 24,100 14,498 390 8,780 2,118 15............. 148,108 102,960 40,843 1,822 1,016 1,391 55 1,490 646 2,838 4,167 2,983 24,115 14,509 386 8,829 2,130 22............. 147,704 102,612 40,987 1,801 1,068 1,320 58 1 ,488 661 2,344 4,144 2,992 24,122 14,482 402 8,871 2,128 29............. 147,751 102,479 40,925 1,809 1,019 1,264 57 1 ,486 669 2,483 3,956 2,988 24,120 14,527 391 8,909 2,124 Apr. 5............. 148,488 103,040 40,918 I ,824 1,125 1,346 56 1,500 667 2,937 3,890 2,998 24,082 14,521 396 8,911 2,131 12............. 147,987 102,394 40,987 1,839 1,087 1,346 56 1,510 657 2,267 3,818 3,015 24,115 14,537 399 8,886 2,125 19............. 148,921 103,042 41,338 1,841 980 1,400 54 1,512 650 2,340 3,966 3,066 24,125 14,551 395 8,949 2,125 26............. 148,022 102,407 41,280 1,843 714 1,322 57 1,543 650 2,125 3,884 3,102 24,154 14,572 394 8,886 2,120 For other notes see p. 813. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 WEEKLY REPORTING BANKS 811 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with— Total Bills c C t a i e t f e i r ­ s ­ No m tes a t a u n ri d n g b — onds O o b p s f l o u i a g S l b ^ i a t t d i a t c i i t v o e a . s n l s C O c e o t s r h t r e i p e f c . a , r u n s r b d i t t o o ie n c s d k s s , Total C p c i r t o t a e o i o i l o s n m c le h f n e s c s ­ s m b D a e n s o t k i ­ c s b F e a i o g n r n k ­ s r C c e a o n n u i c d n r y ­ s B e F w a R r . v i n R e t e h k ­ s . s a o s A th se l e l t r s Wednesday W 1 i i y n th r . ­ 5 1 y t r o s . A 5 f y te rs r . ra w T n a a t x r s ­ 3 o A th l e l r p p a a r o ti t o i f c n i­ 4 O s ri e t t i h c e u e s ­ r Large banks—■ Total 1966 24,067 3,530 511 3,194 10,371 6,461 26,163 39,365 18,798 3,838 201 2,230 14,298 7,448 ..........Apr. 6 24,027 3,526 510 3,119 10,358 6,514 26,113 39,733 19,125 3,983 199 2,527 13,899 7,413 .........................13 24,410 3,797 507 3,140 10,391 6,575 26,700 39,050 18,399 3,815 203 2,452 14,181 7,369 ........................20 24,189 3,532 510 3,174 10,397 6,576 26,792 38,690 17,725 4,147 195 2,47614,147 7,282 ........................27 1967 25,629 4,241 330 3,013 12,109 5,936 3,059 21,723 1,168 2,568 42.449 20,855 4,471 207 2,521 14,395 8,028 ............Mar. 1 25,183 3,830 301 2,993 12,109 5,950 3,297 22,087 1,156 2,539 40,478 18,360 3,859 207 2,479 15,573 7,981 ...........................8 27,185 5,797 307 3,025 12,127 5,929 3,336 22,279 1,174 2,487 43,869 21,955 4,319 261 2,535 14,799 7,856 ........................15 26,705 5,211 310 3,069 12,157 5,958 3,325 22,287 1,174 2,474 40,631 18,754 3,867 215 2,545 15,250 7,851 ........................22 26,770 5,221 301 3,086 12,235 5,927 3,358 22,304 1,163 2,443 38,888 17,537 3,976 215 2,718 14,441 7,847 ........................29 26,078 4,618 315 3,034 12,201 5,910 3,259 22,680 1,267 2,583 43,382 20,748 4,297 219 2,373 15,745 7,981 ...........Apr. 5 26,106 4,530 316 3,071 12,269 5,920 3,364 22,763 1,293 2,599 43,754 21,333 3,967 225 2,625 15,604 7,881 ........................12 25,920 4,243 325 3,052 12,364 5,936 3,764 22,972 1,348 2,669 43,615 21,324 4,276 229 2,593 15,193 7,926 ........................19 25,320 3,601 324 3,056 12,369 5,970 3,778 22,982 1,341 2,606 42,063 19,632 3,895 215 2,672 15,649 8,066 ........................26 New York City 1966 4,356 1,108 124 597 1,352 1,175 5,759 11,579 7,144 191 110 305 3,829 2,808 ..........Apr. 6 4,338 1,094 124 602 1,353 1,165 5,759 10,502 6,057 192 92 318 3,843 2,827 .........................13 4,487 1,247 125 596 1,356 1,163 6,070 10,809 6,292 196 98 308 3,915 2,819 ........................20 4,304 1,047 130 598 1,371 1,158 6,063 10,829 6,164 246 87 308 4,024 2,766 ........................27 1967 4,737 1,283 84 426 1,705 1,239 840 3,983 183 704 12,403 7,864 229 84 319 3,907 2,870 ...........Mar. 1 4,547 1,098 88 435 1 ,688 1 ,238 956 4,113 179 699 12,208 7,216 167 74 332 4,419 2,816 8 5,378 1,934 89 439 1,679 1,237 932 4,189 178 636 13,681 8,772 247 117 321 4,224 2,730 .........................15 5,147 1,648 90 448 1 ,701 1,260 868 4,053 176 629 11,882 7,143 177 75 323 4,164 2,745 ........................22 5,040 1,532 88 440 1,731 1,249 885 4,041 177 623 11,076 6,584 201 87 331 3,873 2,709 ........................29 4,622 1,136 92 418 1,738 1,238 816 4,149 180 652 13,401 7,953 263 91 327 4,767 2,76! ...........Apr. 5 4,804 1,276 91 427 1 ,775 1,235 809 4,126 176 617 12,895 7,743 169 106 336 4,541 2,682 ........................12 4,720 1,153 94 428 1 ,806 1,239 1,106 4,159 183 626 12,573 7,929 238 114 327 3,965 2,770 ........................19 4,519 931 93 430 1 ,831 1,234 990 4, 124 179 600 12,538 7,606 234 94 327 4,277 2,818 ........................26 Outside New York City 1966 19,711 2,422 387 2,597 9,019 5,286 20,404 27,786 11,654 3,647 91 1,925 10,469 4,640............Apr. 6 19,689 2,432 386 2,517 9,005 5,349 20,354 29,231 13,068 3,791 107 2,209 10,056 4,586 .........................13 19,923 2,550 382 2,544 9,035 5,412 20,630 28,241 12,107 3,619 105 2,144 10,266 4,550 ........................20 19,885 2,485 380 2,576 9,026 5,418 20,729 27,861 11,561 3,901 108 2,168 10,123 4,516 ........................27 1967 20,892 2,958 246 2,587 10,404 4,697 2,219 17,740 985 1,864 30,046 12,991 4,242 123 2,20210,488 5,158 ..........Mar. 1 20,636 2,732 213 2,558 10,421 4,712 2,341 17,974 977 1 ,840 28,270 11,144 3,692 133 2,147 11,154 5,165 8 21,807 3,863 218 2,586 10,448 4,692 2,404 18,090 996 1,851 30,188 13,183 4,072 144 2,21410,575 5,126 ..............15 21,558 3,563 220 2,621 10,456 4,698 2,457 18,234 998 1,845 28,749 11,611 3,690 140 2,222 11,086 5,106 ........................22 21,730 3,689 213 2,646 10,504 4,678 2,473 18,263 986 1,820 27,812 10,953 3,775 128 2,387 10,568 5,138 ........................29 21,456 3,482 223 2,616 10,463 4,672 2,443 18,531 1,087 1,931 29,981 12,795 4,034 128 2,04610,978 5,220 21,302 3,254 225 2,644 10,494 4,685 2,555 18,637 1,117 1,982 30,859 13,590 3,798 119 2,289 11,063 5,199 .........................12 21,200 3,090 231 2,624 10,558 4,697 2,658 18,813 1,165 2,043 31,042 13,395 4,038 115 2,266 11,228 5,156 .........................19 20,801 2,670 231 2,626 10,538 4,736 2,789 18,858 1,162 2,006 29,525 I2,O26| 3,661 121 2,345 11,372 5,248 ........................26 For other notes see p. 813. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

812 WEEKLY REPORTING BANKS MAY 1967 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time Total Wednesday unad­ States Do­ Foreign IPC States Foreign justed and mes­ and Do­ TotaD IPC p d s ic o u iv a b li i l - t ­ ­ G U o .S vt . . c m c o t i i e a m c r l ­ ­ G e o t v c t .6 ., C m c o i e a m r l ­ ­ Total 7 S in a g v s ­ Other p d s ic o u iv a b li i l t ­ ­ ­ i b m n t a i t e c e n s 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 1966 Apr. 6........................ 195,432 106,923 78,049 5,608 2,180 12,963 650 1,432 88,509 49,809 26,233 7,406 672 3,974 235 13......................... 195,602 106,971 80,907 5,498 843 12,674 674 1,443 88,631 49,327 26,696 7,570 674 3,952 235 20......................... 195,912 107,077 81,011 5,795 974 12,116 774 1,408 88,835 48,963 26,829 7,847 667 4,119 231 27......................... 197,133 107,929 79,132 5,956 4,263 11,799 616 1,451 89,204 48,825 27,133 7,935 650 4,246 242 1967 Mar. 1 . ..................... 203,875 109,635 79,254 6,310 2,944 13,236 669 1,433 94,240 46,609 33,024 9,011 798 4,423 198 8......................... 199,132 104,096 76,224 5,656 1 ,963 12,804 641 1,400 95,036 46,721 33,503 9,140 863 4,431 203 15......................... 208,785 113,579 83,426 5,628 2,900 13,207 673 1,412 95,206 46,806 33,528 9,191 885 4,419 196 22.......................... 204,571 108,871 78,076 5,463 5,376 12,577 666 1,385 95,700 46,907 33,780 9,266 925 4,439 199 29.......................... 202,725 106,592 77,469 5,937 3,752 12,462 637 1,400 96,133 47,098 34,039 9,247 944 4,416 201 Apr. 5.......................... 206,788 110,561 79,428 5,684 2,930 14,065 668 1,432 96,227 47,090 34,133 9,227 945 4,451 205 12......................... 206,690110,307 80,987 5,583 2,026 13,388 658 1,417 96,383 46,965 34,230 9,347 971 4,495 195 19.......................... 208,684 112,536 80,118 5,392 5,143 13,582 767 1,407 96,148 46,845 33,798 9,681 957 4,505 197 26.......................... 206,416109,992 78,897 5,629 5,200 12,584 731 1,422 96,424 46,868 33,809 9,879 951 4,546 194 New York City 1966 Apr. 6.......................... 46,508 28,244 18,228 469 641 3,389 506 981 18,264 5,108 8,962 647 485 2,841 139 13.......................... 44,747 26,467 18,383 292 127 3,307 553 995 18,280 5,042 9,048 666 482 2,823 139 20.......................... 45,589 27,299 19,018 273 143 3,297 655 950 18,290 4,989 8,954 702 487 2,936 139 27.......................... 46,759 28,371 18,827 336 1,403 3,468 493 998 18,388 4,961 9,011 698 475 3,021 145 1967 Mar. 1.......................... 47,316 29,844 19,159 459 732 4,101 534 999 17,472 4,596 8,335 841 510 3,015 101 8.......................... 45,293 27,578 17,918 360 410 3,779 501 961 17,715 4,606 8,446 892 569 3,029 100 15.......................... 49,472 31,843 20,596 571 872 3,882 529 983 17,629 4,627 8,363 875 586 3,003 101 22...................... 47,345 29,563 18,835 372 1,694 3,630 523 951 17,782 4,630 8,457 888 619 3,011 103 29.......................... 46,148 28,301 18,587 465 985 3,626 503 969 17,847 4,663 8,548 824 631 3,001 105 Apr. 5.......................... 47,603 29,818 19,025 530 725 3,911 531 992 17,785 4,668 8,499 794 631 3,014 109 12.......................... 46,650 28,888 18,737 374 546 3,716 521 977 17,762 4,645 8,470 799 639 3,031 105 19......................... 47,851 30,369 18,708 298 1,726 4,017 634 942 17,482 4,631 8,213 796 635 3,028 106 26.......................... 47,646 30,146 18,868 415 1,760 3,922 583 980 17,500 4,632 8,196 804 625 3,059 101 Outside New York City 1966 Apr. 6.................... 148,924 78,679 59,821 5,139 1,539 9,574 144 451 70s245 44,701 17,271 6,759 187 1,133 96 13.......................... 150,855 80,504 62,524 5,206 716 9,367 121 448 70,351 44,285 17,648 6,904 192 1,129 96 20.......................... 150,323 79,778 61,993 5,522 831 8,819 119 458 70,545 43,974 17,875 7,145 180 1,183 92 27.......................... 150,374 79,558 60,305 5,620 2,860 8,331 123 453 70,816 43,864 18,122 7,237 175 1,225 97 1967 Mar. 1.......................... 156,559 79,791 60,095 5,851 2,212 9,135 135 434 76,768 42,013 24,689 8,170 288 1,408 97 8.......................... 153,839 76,518 58,306 5,296 1 ,553 9,025 140 439 77,321 42,115 25,057 8,248 294 1,402 103 15.......................... 159,313 81,736 62,830 5,057 2,028 9,325 144 429 77,577 42,179 25,165 8,316 299 1,416 95 22.......................... 157,226 79,308 59,241 5,091 3,682 8,947 143 434 77,918 42,277 25,323 8,378 306 1,428 96 29.......................... 156,577 78,291 58,882 5,472 2,767 8,836 134 431 78,286 42,435 25,491 8,423 313 1,415 96 Apr. 5.......................... 159,185 80,743 60,403 5,154 2,205 10,154 137 440 78,442 42,422 25,634 8,433 314 1,437 96 12.......................... 160,040 81,419 62,250 5,209 1 ,480 9,672 137 440 78,621 42,320 25,760 8,548 332 1,464 90 19.......................... 160,833 82,167 61,410 5,094 3,417 9,565 133 465 78,666 42,214 25,585 8,885 322 1,477 91 26.......................... 158 770 79,846 60,029 5,214 3,440 8,662 148 442 78,924 42,236 25,613 9,075 326 1,487 93 For other notes see p. 813. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 WEEKLY REPORTING BANKS 813 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets— lia O b t i h li e tie r s a C cc a o p u it n a t l s lia T b a o i n l t i d a ti e l s Total T lo o a t n a s l Demand La o rg f e d e c p er o t s ifi i c t1 a 0 tes Wednesday From From capital loans (net), deposits B F a . n R k . s others accounts ad ( j n u e s t t ) e , d8 a a d n ju d s t i e n d ­ , adjusted 9 Total Issued Issued vestments 8 issued to IPC’s to others Large banks— Total 1966 593 4,776 7,926 18,624 227,351 127,452 177,682 72,982 17,454 145 4,997 8,236 18,618 227,598 127,565 177,705 74,329 17,523 .....................................13 1,440 4,395 8,361 18,584 228,692 128,783 179,893 75,588 17,588 ....................................20 52 4,112 8,361 18,605 228,263 128,547 179,528 74.142 17,709 .....................................27 1967 45 5,635 11,085 19,467 240,107 132,359 186,506 72,600 ’ 18,517 12,227 6,290 ........................Mar. 1 279 6,107 11,188 19,529 236,235 130,510 184,772 70,969 18,994 12,478 6,516 ................................... 8 229 6,235 10,868 19,482 245,599 134,020 190,481 75,517 18,901 12,340 6,561 .....................................15 89 6,307 10,950 19,477 241,394 133,654 189,619 72,164 19,119 12,447 6,672 .................... 22 2 5,913 10,850 19,515 239,005 133,027 189,065 72,841 19,299 12,554 6,745 .....................................29 506 6,860 10,484 19,618 244,256 133,623 189,490 72,817 19,214 12,461 6,753 ........................Apr. 5 874 5,937 10,308 19,629 243,438 132,958 189,083 73,560 19,146 12,402 6,744 .....................................12 171 6,209 10,686 19,597 245,347 134,170 190,843 72,487 18,619 11,907 6,712 .....................................19 431 5,817 10,542 19,643 242,849 133,643 189,670 72,576 18,583 11,811 6,772 .....................................26 blew York City 1966 2,031 3,572 5,029 57,140 31,398 41,513 17,070 7,312 ................... ■ Apr. 6 5 2,170 3,636 5,025 55,583 31,356 41,453 16,976 7,357 ............... 13 706 1,688 3,595 5,022 56,600 32,025 42,582 17,567 7,397 ............... 20 1,198 3,499 5,021 56,477 31,615 41,982 17,336 7,397 ....................................27 1967 1,755 5,057 5,320 59,448 33,000 43,447 17,147 6,345 4,344 2,001 ' ........................Mar. 1 64 2,346 5,233 5,313 58,249 32,269 42,763 16,173 6,535 4,404 2,131 .......................................8 100 2,482 4,812 5,31 1 62,177 33,898 45,211 18,317 6,455 4,312 2,143 .....................................15 2,107 5,085 5,298 59,835 33,386 44,259 17,096 6,593 4,396 2,197 .....................................22 ...... 1,819 5,037 5,301 58,305 33,031 43,797 17,106 6,654 4,436 2,218 .....................................29 221 2,357 5,046 5,340 60,567 33,520 43,939 17,229 6,624 4,423 2,201 ............ Apr. 5 345 2,256 4,804 5,338 59,393 32,831 43,363 16,883 6,636 4,418 2,218 . . ...........................12 ...... 2,301 4,741 5,335 60,228 33,468 44,262 16,697 6,424 4,215 2,209 .....................................19 2,083 4,990 5,335 60,054 33,36! 43,773 16,858 6,397 4,192 2,205 ....................................26 Outside New York City 1966 593 2,745 4,354 13,595 170,211 96,054 136,169 55,912 10,142 ........................Apr. 6 140 2,827 4,600 13,593 172,015 96,209 136,252 57,353 10,166 .....................................13 734 2,707 4,766 13,562 172,092 96,758 137,311 58,021 10,191 .....................................20 52 2,914 4,862 13,584 171,786 96,932 137,546 56,806 10,312 ....................................27 1967 45 3,880 6,028 14,147 180,659 99,359 143,059 55,453 12,172 7,883 4,289 215 3,761 5,955 14,216 177,986 98,241 142,009 54,796 12,459 8,074 4,385 ................................... 8 129 3,753 6,056 14,171 183,422 100,122 145,270 57,200 12,446 8,028 4,418 .....................................15 89 4,200 5,865 14,179 181,559 100,268 145,360 55,068 12,526 8,051 4,475 .....................................22 2 4,094 5,813 14,214 180,700 99,996 145,268 55,735 12,645 8,118 4,527 ................. 29 285 4,503 5,438 14,278 183,689 100,103 145,551 55,588 12,590 8,038 4,552 .......................Apr. 5 529 3,681 5,504 14,291 184,045 100,127 145,720 56,677 12,510 7,984 4,526 .....................................12 171 3,908 5,945 14,262 185,119 100,702 146,581 55,790 12,195 7,692 4,503 .....................................19 431 3,734 5,552 14,308 182,795 100,282 145,897 55,718 12,186 7,619 4,567 ....................................26 1 After deduction of valuation reserves. 2 Individual items shown gross. ^Certificates of deposit issued in denominations of $100,000 or more. 3 Includes short-term notes and bills (less than I year to maturity) Note.—Beginning June 29, 1966, coverage of series was changed from issued by States and political subdivisions. * Federal agencies only. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ s Includes certified and officers’ checks, not shown separately. cial Banks (earlier figures for 1966 are comparable with the new series.) 6 Deposits of foreign governments and official institutions, central Also beginning June 29, 1966, detailed breakdown is shown of “All other banks, and international institutions. loans,” of “Other securities,” and of ownership of time certificates of 7 Includes U.S. Government and postal savings not shown separately. deposit in denominations of $100,000 or more. For description of revisions, 8 Exclusive of loans to domestic commercial banks. see Aug. 1966 Bulletin, pp. 1137-40. 9 All demand deposits except U.S. Government and domestic com­ mercial banks, less cash items in process of collection. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

814 BUSINESS LOANS OF BANKS MAY 1967 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1967 1967 1967 1966 1966 Industry A 2 p 6 r. A 1 p 9 r. A 1 p 2 r. Ap 5 r. M 2 a 9 r. Apr. Mar. Feb, 1 IV in h 2n a d lf h 1 a s l t f Durable goods manufacturing: Primary metals........................................... 962 961 952 936 936 26 44 15 100 -60 -75 -135 233 Machinery.................................................... 4,724 4,618 4,477 4,563 4,635 89 476 84 602 220 360 580 680 Transportation equipment.................. 2,001 2,033 2,105 2, 179 2,221 -220 137 104 226 235 239 474 358 Other fabricated metal products... 1 ,773 1 ,777 1,764 1,727 1,711 62 143 17 143 -99 72 -27 265 Other durable goods............................... 1,997 2,001 2,016 2,045 2,020 -23 87 24 57 6 78 84 390 Nondurable goods manufacturing: Food, liquor, and tobacco.................. 2,180 2,202 2,167 2,236 2,248 -68 -150 - 104 -472 519 56 575 -156 Textiles, apparel, and leather............. 2,071 2,089 2,085 2,055 2,073 -2 131 145 211 -380 106 -274 550 Petroleum refining................................... 1 ,463 1,486 1,457 1,458 1 ,487 -24 -48 61 -162 -92 -254 256 Chemicals and rubber........................... 2,581 2,581 2,500 2,450 2,423 158 21 1 (21 308 52 81 133 353 Other nondurable goods....................... 1,583 1,573 1,543 1,531 1,525 58 69 -24 53 -63 127 64 309 Mining, including crude petroleum and natural gas......................................... 3,936 3,992 3,958 3,973 4,019 -83 -49 -79 194 -40 222 182 344 Trade: Commodity dealers...................... 1,176 1 ,190 1,209 1,242 1,260 -84 -41 -71 -145 312 22 334 -322 Other wholesale.............................. 2,937 2,939 2,926 2,920 2,910 27 76 -12 17 60 42 102 161 Retail......................................... 3,500 3,481 3,372 3,349 3,363 137 -41 71 -184 69 -116 -47 455 Transportation, communication, and other public utilities............ 551 370 921 220 Transportation........................................... 3,844 3,817 3,786 3,786 3,794 50 88 39 88 n.a. n.a. n.a. n.a. Communication......................................... 896 898 849 853 838 58 25 -21 66 n.a. n.a. n.a. n.a. Other public utilities. . ......................... 1 ,928 1,968 1 ,925 1,970 1,946 -18 -144 -133 -321 n.a. n.a. n.a. n.a. Construction..................................................... 2,548 2,541 2,539 2,516 2,497 51 -8 1 -107 -99 -74 -173 189 Services............................................................... 4,696 4,710 4,688 4,684 4,686 10 15 -60 -142 n.a. n.a. n.a. n.a. All other domestic loans........................... 6,144 6,189 6,129 6,119 6,054 90 HO 84 285 3 -56 -53 469 Bankers’ acceptances................................... 747 757 743 745 771 -24 154 -114 236 165 -101 64 -232 Foreign commercial and industrial loans................................................................ 2,950 2,943 2,948 2,960 2,965 -15 55 30 93 n.a. n.a. n.a. n.a. Total classified loans................................... 56,637 56,746 56,138 56,297 56,382 255 1,388 69 1,369 1 ,289 1,261 2,550 4,522 Total commercial and industrial loans 62,345 62,441 61,795 61,897 61,962 383 1,558 -45 1,215 1,339 1,656 2,995 4,671 1 Beginning with data for Dec. 28, 1966, this series was revised in for­ Note.—About 161 weekly reporting banks are included in this series: mat and coverage as described on p. 209 of the Feb. 1967 Bulletin. these banks classify, by industry, commercial and industrial loans amount­ Data for earlier dates are not strictly comparable. ing to about 90 per cent of such loans held by all weekly reporting banks, and about 10 per cent of those held by all commercial banks. BANK RATES ON SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) 1967 1967 1967 1967 1967 1967 Feb. Feb. Feb. Feb. Feb. Feb. Percentage distribution of dollar amount Less than 5.50.. . . . .............................................................. 2.0 .9 .8 1.3 2.6 2.4 5.50.................................................................................................... 3.1 .5 .5 1.3 1.2 5.1 5.51 5.75........................................................................................ 33.7 .7 3.9 15.4 27.6 51.8 5.76-6.00........................................................................................ 23.4 10.7 14.0 24.4 30.6 23.4 6.01-6.49....................................................................................... 13.3 22.7 22.8 21.7 14.2 6.7 6.50.................................................................................................... 5.9 10.7 11.8 8.2 6.6 3.2 6.51-6.99........................................................................................ 7.1 15.6 17.0 10.6 6.2 3.2 7.00.................................................................................................... 5.0 12.1 10.4 6.5 6.1 2.5 Over 7.00...................................................................................... 6.5 26.0 18.9 10.6 5.0 1.7 Total............................................................................... ■ 100.0 100.0 100.0 100.0 100.0 100.0 Total loans: 3,790.8 56.2 435.0 858.5 549.2 1,891.8 Number (thousands)......................................................... 35.9 15.5 14.3 4.5 .9 .8 Center Weighted average rates (per cent per annum) 35 centers............................................................... 6.13 6.73 6.63 6.33 6.13 5.90 New York City..................................................................... 5.86 6.55 6.49 6.08 5.89 5.77 7 Other Northeast............................................................... 6.45 6.75 6.85 6.57 6.39 6.09 8 North Central... .......................................................... 6.11 6.80 6.65 6.39 6.17 5.92 7 Southwest.......................................................................... 6.08 6.58 6.32 6.06 6.03 5.84 8 Southwest.............................................................................. 6. 18 6.65 6.50 6.27 6. 13 5.95 4 West Coast........................................................................ 6.29 7.26 6.90 6.49 6.27 6.03 Note.—Beginning Feb. 1967 the Quarterly Survey of Interest Rates on 1960—Aug. 23 4'4 1967—-Jan. 26-27 5'4-5’/. Business Loans was revised. For description of revised series see pp. 721­ 1965—Dec. 6 5 Mar. 27 5'4 727 of this Bulletin. 1966—Mar. 10 514 Bank prime rate was 5 per cent during the period Jan. 1, 1960-Aug. June 29 5% 22, 1960. Changes thereafter to new levels (in per cent) occurred on the Aug. 16 6 following dates; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTEREST RATES 815 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period m 4 p o c - a o n t p o m th e ! r 6 s , , - i d 3 p i p - r l a e a t p o c c e e tl 6 d r y - , 9 b 0 a a a c n d n c c a k e e y e p s s r t , s ­ ’ 1 F f r e u a d n te e d r s a 3 l Ra 3 te -m o o n n th b M ill a s rk 5 et Ra 6 te -m o o n n th b M ills a rk 5 et 9 B - i ll t s o (m 12 a - r m ­ on O th t h is e s r u e 6 s 3 I _ s - y s t u e o e a s r 5 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 5.17 5.16 1966—Apr....................... 5.38 5.25 5.00 4.67 4,611 4.61 4.742 4.74 4.76 4.87 4.86 May..................... 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 1967—Jan........................ 5.73 5.50 5.23 4.94 4.759 4.72 4.787 4.74 4.61 4.71 4.71 Feb....................... 5.38 5.19 4.88 5.00 4. 554 4.56 4.565 4.59 4.57 4.64 4.73 Mar...................... 5.24 5.01 4.68 4.53 4.288 4,26 4.243 4.22 4.18 4.35 4.52 Apr...................... 4.83 4.57 4.29 4.05 3.852 3.84 3.894 3.90 3.90 4.03 4.46 Week ending—• 1967—Apr. 1............. 5.10 4.93 4.45 4.25 4.150 4.13 4.073 4.09 4.06 4.16 4.42 ‘ 8.............. 5.00 4.75 4.38 4.55 3.976 3.95 3.998 4.00 3.98 4.08 4.36 15............. 4.80 4.53 4.28 3.93 3.810 3.84 3.856 3.89 3.89 4.03 4.39 22............. 4.75 4.50 4.25 3.93 3.905 3.82 3.950 3.88 3.88 4.02 4.48 29...... 4.75 4.50 4.25 4.00 3.715 3.72 3.772 3.81 3.84 4.01 4.58 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 companies, for varying closing bid prices. ' maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. ? 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 ( S lo ta n te g s ­ Total i term) Total i Aaa Baa Aaa Baa In tr d i u a s l ­ R ro a a i d l­ P u u ti b lit li 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 1966—Apr............................................... 4.55 3.68 3.46 4.06 5.16 4.96 5.41 5.09 5.19 5,21 4,78 3,15 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 July................................................ 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 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 6.78 1967—Jan................................................. 4.40 3.74 3.50 4.04 5.50 5.20 5.97 5.45 5.63 5.42 5.07 3.51 4.47 3.62 3.38 3.90 5.35 5.03 5.82 5.33 5.48 5.25 4.98 3,36 4.45 3.63 3.48 3.86 5.43 5.13 5.85 5.39 5.51 5.37 5.04 3.29 Apr................................................ 4.51 3.67 3.50 3.90 5.42 5.11 5.83 5.37 5.51 5.37 5.03 3.24 ....................... Week ending— 1967—April I...................................... 4.45 3.62 3 46 3 85 5 41 5.12 5.83 5.36 5 49 5.38 5.01 3.24 ' 8....................................... 4.44 3.63 3.48 3.85 5.41 5.11 5,82 5.36 5.52 5.36 5.00 3.27 15...................................... 4.45 3.6| 3.46 3.85 5.41 5.12 5.81 5.36 5.51 5.36 5.00 3.31 22....................................... 4.54 3.69 3.50 3.93 5.41 5.H 5.83 5,37 5.51 5.36 5.03 3.20 29...................................... 4.62 3.74 3.55 3.97 5.43 5.11 5.85 5.38 5.51 5.40 5.10 3.16 .......... Number of issues,............................... 10-11 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. Corporate 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 Corporate 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

816 SECURITY MARKETS MAY 1967 MORTGAGES: NEW AND EXISTING HOMES SECURITY PRICES (Per cent) (Pe B r o $ n 1 d 0 0 p ri b c o e n s d) Co ( m 19 m 4 o 1 n - 4 s 3 to = c 1 k 0 p ) rices Vol­ Contract interest rate on ume Period o i n n Y s F i u e H r l e d A d - F c H o A nv s e e n r t ie io s nal first F m H o L r B tg B ag s e e s ries Period ( G t l U e o o r . n m S v g t . ) ­ , S lo a t n c a d a te l A C p a A o o te r A r ­ ­ 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 y c i b l ­ ­ ( s t t h h r i a n a o o r g d u f e 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 1966—Apr... 79.75 105.9 87.6 91.60 98.17 52.33 70.06 9,310 1964....................... 5.45 5.80 5.85 5.78 5.92 May.. 79.56 104.5 87.6 86.78 92.85 47.00 68.49 8,165 1965 ....................... 5.47 5.83 5.89 5.76 5.89 June. . 78.93 103.2 86.9 86.06 92.14 46.35 67.51 6,393 1966....................... 6,38 6.40 6.47 6.11 6.24 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—Feb.......... 6.05 6.10 5.85 5.97 Sept.. 77.15 98.5 82.6 77.81 83.11 40.31 63.11 5,722 Mar......... 6.00 6.15 6.20 5.90 6.01 Oct... 78.07 100,5 83.5 77.13 82.01 39.44 65.41 6,971 Apr. 6.25 6.30 5.99 6.09 Nov... 77.68 101.0 83.5 80.99 86.10 41.57 68.82 7,297 May.... 6.32 6.30 6.35 6.02 6.16 Dec,.. 78.73 102.4 83,0 81.33 86.50 41.44 68,86 7,883 June.... 6.45 6.40 6.50 6.07 6.18 July.......... 6.51 6.45 6.55 6.12 6.24 1967—Jan... 81.54 106.0 85.9 84.45 89.88 44.48 70.63 9.885 Aug.......... 6.58 6.55 6.65 6.18 6.35 Feb... 80.73 106.4 86.4 87.36 93.35 46.13 70.45 9,788 Sept......... 6.63 6.65 6,70 6.22 6.40 Mar.. 80.96 105.8 85.6 89.42 95.86 46.78 70.03 10,217 Oct.. . . . 6.70 6.75 6.32 6.49 Apr... 80.24 104.9 85.4 90.96 97.54 45.80 71.70 9,389 Nov......... 6.81 6.70 6.75 6.40 6.50 Dec.......... 6.77 6.65 6.70 6.44 6.52 Week ending—• Dec.1... 6.77 6.65 6.70 >6.49 16.55 1967 1967—Jan...... 6.62 6.60 6.65 6.47 6.54 Feb.......... 6.46 6,50 6.55 6.44 6,49 Apr. 1.......... 80.95 105.4 85.8 90.68 97.31 46.57 70.66 8,624 Mar......... 6.35 6.45 6.50 6.42 6.44 8 81 .09 105.8 85,7 89.51 95.89 45.81 70.95 8,932 6.29 6.40 6.45 15.......... 80.88 105.8 85.7 89.16 95.42 45.46 71.37 8,010 22.......... 79.92 104,6 85.5 91.86 98.53 45.76 72.31 10,070 29.......... 79,05 103.6 84,7 93.31 100.30 46. 17 72.15 10,546 i New FHLBB Series. Note.—Annual data are averages of monthly figures. The Note.—Annual data are averages of monthly figures. Monthly and weekly FHA data are based on opinion reports submitted by field offices data are averages of daily figures unless otherwise noted and are computed as on prevailing conditions in their localities as of the first of the follows: U.S. Govt, bonds, derived from average market yields in table at bottom of succeeding month. The yields are derived from weighted aver­ preceding page on basis of an assumed 3 per cent, 20-year bond. Municipal and ages of private secondary market prices for Sec. 203, 30-year corporate bonds, derived from average yields as computed by Standard and Poor’s mortgages with minimum downpayments and an assumed pre­ Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common payment at the end of 15 years. Gaps in the data are due to stocks. Standard and Poor’s index. Volume of trading, average daily trading in periods of adjustment to changes in maximum permissible con­ stocks on the N.Y. Stock Exchange for a S/z-hour trading day. tract interest rates. The FHA series on average interest rates 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. 833. STOCK MARKET CREDIT (In milhons 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 or carrying— Cus­ Month Total tomers’ securities net other than Other securities c f r r e e d e i t U.S. Govt. se G c U u o . r S v it t . ie , s se O cu th ri e ti r e s se G c U u o . r v S it 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 C co u l s la to te m ra e l r co O lla th te e r r a l a b n a ce l­ s 1964—Dec.......... 7,053 21 5,079 72 1,974 222 3,910 3,393 517 1,169 1965—Dec.......... 7,705 22 5,521 101 2,184 130 3,576 2,889 687 1,666 1966—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 Dec.......... 7,443 58 5,329 76 2,114 240 3,472 2,673 799 1,637 1967—Jan........... 7,345 84 r5,290 70 2,055 267 2,920 2,291 629 1,914 Feb.......... 7,415 95 5,349 75 2,066 n.a. n.a. n.a. n.a. 1,936 Mar......... 7,808 86 5,718 68 2,090 n.a. n.a, n.a. n.a. 2,135 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

MAY 1967 OPEN MARKET PAPER; SAVINGS INSTITUTIONS 817 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In minions 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 di l r a e c c e t d ­ Total Others p in o t r o ts p fr o o r m ts Do e ll x a ­ r points in— dealers t ly 2 Total O bi w lls n bo B u il g ls h t Own F ei o g r n ­ U S n ta it t e es d U S n ta it t e e d s change United Foreign acct. corr. States countries 1960............................ 4,497 1,358 3,139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961............................ 4,686 1,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962............................ 6,000 2,088 3,912 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 1963............................ 6,747 1,928 4,819 2,890 1,291 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 Hl 43 1,565 1965............................ 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 27 35 1,564 1966—Mar............... 10,732 2,066 8,666 3,388 1,266 1,037 229 126 129 1,867 775 887 36 21 1,668 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 1,034 235 180 159 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 3,359 961 861 100 72 230 2,096 982 756 75 57 1,489 Nov. 14,169 3,153 11,016 3,457 1,056 895 161 131 203 2,067 995 781 85 69 1,527 Dec....... 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 103 80 1,595 1967—Jan................. 04,718 3,449 Hl, 269 3,601 1,359 1,028 331 73 173 1,996 936 829 78 90 1,668 Feb....... 15,199 3,781 11,418 3,575 1,266 1,004 262 113 201 1,995 918 851 65 82 1,659 Mar............ 16,034 4,360 11,674 3,704 1,366 1,077 290 HO 232 1,996 962 921 60 71 1,691 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. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets—■ End of period M ga o g r e t­ Other G U o .S v . t . S l g a o o t n c a v a d te t l . C ot r a o 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 T e a a s t n o i b e n e e t r d s i a r v l a i l e ­ l De its p o 2 s­ l O ia t t i b h es i e li r ­ G r c e o e s a u e n c n r e ­ v t r e s a l c M o o m rt m ga itm ge e n lo ts a n 3 accts. NumberAmount 1941...................................... 4,787 89 3,592 86 829 689 11,772 10,503 38 1,231 1945...................................... 4,202 62 10,650 1.257 606 185 16,962 15,332 48 1,582 1960...................................... 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961..................................... 28,902 475 6,160 667 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1962...................................... 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 114,985 2,548 1963...................................... 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 104,326 2,549 1964................................... 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 135,992 2,820 1965...................................... 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 120,476 2,697 1966—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 1,343 4,707 115,845 2,580 May....................... 45,529 991 5,311 297 5,353 854 995 59,330 53,075 1,480 4,774 116,497 2,637 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 53,523 1,499 4,750 104,630 2,352 Aug......................... 46,232 1,095 5,063 276 5,659 825 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......................... M6.736 1,023 4,913 260 5,588 833 1,037 60,390 54,178 1 ,400 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 91,634 2,072 Dec......................... 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 88,808 2,010 1967—Jan.......................... 47,484 1,076 4,679 247 6,053 969 1,062 61,570 55,456 1,259 4,855 88,479 2,013 Feb......................... 47,692 1,137 4,700 249 6,251 1,041 1 ,051 62,122 55,788 1,428 4,906 90,223 2,055 Mar................... 47,973 1,136 4,645 246 6,480 1,140 1,081 62,701 56,538 1,249 4,914 91,125 2,289 1 Also includes securities of foreign governments and international Note,—National Assn, of Mutual Savings Banks data; figures are organizations and nonguaranteed issues of U.S. Govt, agencies. estimates for all savings banks in the United States and differ somewhat 2 See note 4, p. 803 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. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

818 SAVINGS INSTITUTIONS MAY 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 60! 6,442 1,878 2,919 1,840 1945.................................................... 44,797 22,545 20,583 722 1,240 1^059 10,060 999 6,636 857 1,962 1,738 1960............................................... 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961.................................................... 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962.................................................... 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4.107 6,234 6,024 1963................................................ 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4.319 6,655 6,385 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 Book value; 149,470 12,343 5,594 3,785 2,964 62,112 55,735 6,377 55,197 4,534 7,14! 8,143 1965—Dec....................................... 158,884 11,703 5,119 3,546 3,038 65,801 58,532 7,269 60,057 4,686 7,679 8,958 1966—Feb.'.................................. 160,242 11,688 5,187 3,483 3,018 66,429 59,137 7,292 60,840 4,704 7,775 8,806 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 Dec....................................... 166,942 10,848 4,862 3,119 2,867 68,362 60,927 7,435 64,803 4,878 9,136 8,915 1967—Jan........................................ 168,210 10,850 4,847 3,122 2,881 68,994 61,490 7,504 65,193 4,885 9,250 9,038 Feb........................................ 168,933 10,793 4,821 3,081 2,891 69,373 61,795 7,578 65,503 4,890 9,341 9,033 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance 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 assets2— loan period M ga o ge r s t­ s G U e o c .S u v r t . i , ­ Cash Other t lia T b o il t i a tie l s S c a a v p i i n ta gs l u R n e d a s i e n v r i d d v e e s d B m or o r n o e w y e 3 d L p o r a o n c s e s i s n Other c m o e m n m ts4 it­ ties profits 1941........................... 4,578 107 344 775 6,049 4,682 475 256 636 1945........................... 5,376 2,420 450 356 8'747 7,365 644 336 402 I960........................ 60.070 4,595 2 680 4,131 71 476 62 142 4 983 2 197 1 186 968 I 359 1961.......................... 68,834 5 211 3 315 4 775 82 135 70*885 5 708 2*856 1*550 1 136 J 00g 1962.......................... 78,770 5'563 3*926 5 346 93*605 80*236 6 520 3*629 1 999 1 * 221 2 230 1963.......................... 90,944 6 445 3 979 6 191 107 559 91,308 7 209 5 015 2,528 t.499 2,614 1964 ......................... 101,333 6 966 4 015 7 041 119,355 101 887 7 899 5’601 2,239 1,729 2*590 1965.......................... 110,202 7’405 3,899 7,936 129^442 110,271 8,708 6 440 2,189 1 ’,834 2,745 1966—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 8,542 132,602 111,174 8,726 71139 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 Aug. 113’897 7'353 2 717 8,463 132 430 110’975 9,002 7,748 1,814 2'891 2’062 114’004 7^472 ■ 2,628 8,527 132,631 Hl *606 9'0H 7,697 1^642 2,675 1'843 Oct.............. 113,998 7,626 2’682 8,582 132^888 111^550 9,018 7,749 1^493 3,078 1^689 113,977 7'927 2,856 8,817 133,577 112,164 9,012 7 566 1,348 3,487 1 596 114,089 7,762 3,361 8'648 133 860 113’896 9,251 7 460 1 254 1 999 I 483 1967—Jan.............. 114,130 7,874 3 164 8 428 133,596 114 080 9 080 6 702 I 172 2 562 1,633 Feb.'..... 114,298 8,070 3,361 8,’535 134,264 114^843 9^069 6J01 1,199 3,’052 1,902 Mar............ 114,683 8,062 3,528 8,738 135,011 116,258 9,062 5,442 1,348 2,901 2,252 1 Includes other loans, stock in the Federal home loan banks, other 4 Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on 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

MAY 1967 FEDERALLY SPONSORED CREDIT AGENCIES 819 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Assets Liabilities and capital (s M ec o o o r p n tg e d a r a a g r t y e io m n A a s s ) r s k n e , t coo B p a e fo n ra r k t s i . v es i c n r t e e F d r e m it d e e b d r a a i n a l k te s F b e la a d n n e k d r s al End of period v m a b A n t e e o d c m r s e ­ ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ t h s B n a o o n n te d d s s M po b d e s e e 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 ­ D n t e u a ( o b L r n t e e e ) d s s n ­ c L a o o ( t o i t A v a o p e n ) e s s r ­ D t e u ( b L re e ) s n­ c L o a o d ( u A n a is n d n ) ­ t s s D t e u (L b re e ) s n­ M l g o ( a a A o g n r ) e s t ­ Bo (L n ) ds 1958................. 1,298 999 75 714 819 769 1,323 1,100 510 252 1,157 1,116 2,089 1,743 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 [962.................. 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963.................. 4,784 1,906 159 4'363 1,151 1,171 2,000 1,788 840 589 2,099 1'952 3,310 2,834 [964................. 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 1955.................. 5,997 1,640 129 5,221 1,045 1.277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966—Mar... 5,687 1 ,632 89 5,060 824 1,303 3,t88 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 3,611 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 1.623 76 6,615 711 1,355 3,891 3,414 1,190 882 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 Dec,.. 6,935 2,523 U3 6,859 1,037 1,369 4,266 3,800 1,290 1 ,074 2,924 2,786 4,958 4,385 1967—Jan... 6,340 3,101 92 6,802 1,089 1,377 4,369 3,878 1,323 1,076 2,976 2,779 4,986 4,385 Feb... 5,800 3,305 92 6,285 1,241 1,384 4,431 3,984 1,342 1,113 3,056 2,850 5,035 4,450 Mar... 5,175 3,564 95 5,709 1,490 1,387 4,459 4,010 1,363 1,113 3,168 2,944 5,111 4,450 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 are 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, MARCH 31, 1967 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: Apr. 25, 1967.,.....................5.55 624 Debentures: May 22, 1967........................4 180 Sept. 10, 1970.............................4% 119 July 20,1967.........................6.05 302 Aug. 10, 1971.............................4% 64 Aug. 21, 1967..........................4% 179 Sept. 10, 1971.............................4% 96 Oct. 1, 1967-70..................4*4 75 Bonds: Feb. 10, 1972.............................5% 98 Oct. 23, 1967..........................4‘/s 174 June 26, 1967...........................5*4 500 June 12, 1972............................4% 100 Oct. 23 1967.............................5% 150 July 26,1967................ 5*4 535 June 12, 1973.............................414 146 Dec. 20, 1967..........................5% 329 Aug. 28, 1967................................514 590 Feb. 10, 1977.............................4% 198 Jan. 22, 1968.....................5% 161 Sept. 15, 1967.... .....................4*4 185 Mar. 20, 1968.........................4*4 111 Sept. 27, 1967...............................6>4 650 May 20, 1968.........................5*4 242 O N J A M M a o p c a a n t v r r r . . . . . . 2 2 2 2 2 7 6 5 5 5 1 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 7 8 8 9 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 4 . . . . . . % % % % . . 6 6 7 2 5 2 6 3 0 5 0 2 5 0 0 0 0 5 0 0 Ba D nk e J A A M s b u u p e a f n g o n r y e . . t r u c r o e 3 1 1 1 o s , , , , p : 1 1 1 e 1 9 9 9 r 9 6 a 6 6 6 t 7 7 7 7 iv . . . . . . . e . . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 6 5 % . . . 9 0 1 5 5 5 2 2 2 2 7 6 9 7 7 5 5 6 J A J J M O u u u u c a n l l g y y t e r . . . 2 2 2 2 1 1 0 0 0 0 5 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 9 8 9 9 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4 4 4 1 1 % % > 4 4 4 2 1 1 1 1 0 6 6 3 0 8 9 0 0 0 6 0 Feb. 20, 1970.........................5*4 82 Apr. 1, 1970.........................3*4 83 Fede t t r i i o a o n l n s - N s a e t c io o n n a d l a M ry o rt m ga ar g k e e t A s o s p o e c r i a a­ ­ Fe D de e A r b a p e l n r in . t u te r r e m 3 s , : e 1 d 9 ia 6 te 7 c . r . e . d .. it . . b . a .. n . k 5 s .60 283 J S F M u e e a l p b y y t . . 2 2 1 0 0 5 1 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 1 2 0 3 . . . . - . . . . 7 . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 4 .3 1 % * * 4 4 4 1 1 8 6 0 4 5 9 8 0 May 1, 1967...........................5JS 298 Feb. 20, 1974.........................4W 155 Discount notes............................... 923 June 1, 1967...............................6 278 Apr. 21, 1975..........................4% 200 July 3, 1967.........................6.20 230 Feb. 24, 1976.........................5 123 Debentures: Aug. 1, 1967.........................5.95 298 July 20, 1976..........................5% 150 May 10, 1967.............................5)1 o 250 Sept. 5, 1967........................6.05 318 Apr. 20, 1978........................5’4 150 June 12, 1967...........................5Ho 400 Oct. 2, 1967.........................5.60 372 Jan. 22, 1979..........................5 285 Oct. 11,1967................. 4*4 150 Nov. 1, 1967.........................5,15 465 Mar. 11, 1968............................3% 87 Dec. 4,1967..........................5>/8 404 Tennessee Valley Authority Sept. 10, 1968............................5% 350 Short-term notes............................ 200 Apr. 10, 1969...........................4% 88 Federal land banks Bonds: July 10,1969..............................5*4 250 Bonds: Nov. 15, 1985......................4.40 50 Dec. 12, 1969............................6 550 Feb. 15, 1967-72...................4% 72 July 1, 1986..........................4% 50 Apr. 10, 1970............................4% 142 Feb. 1, 1987..........................4(4 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

820 FEDERAL FINANCE MAY 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 rects. Bu n d e g t et T f P u r l n u u d s s s : t g I L n o e t v s r t a s . : ­ 1 E r T e q c o u t t a s a l . s l 2 : Budget f T u P n r lu u d s s s : t 3 A m L d e e j n s u s t s s : t 4 ­ E p T q a o u y t a t a s l l s . : pa o y r t s. C & (d d h a i e a i r n g e b n e t c g n t e . ) a In t g L r v u e e b e s s y n s t s . s t : & , L N c d e a e o s s b n s h t ­ : Eq N u e a t ls: Cal, year—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 4349 123,376 101,379 31,014 4,473 127,919 -4,543 4,673 1,386 417 2,872 1966................ 110,802 40,011 4,792 145,137 118,077 36,791 4,003 150,867 -5,730 13,526 8,396 342 4,788 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;?27 34,853 4,451 134,480 106 ,’978 34,864 4,026 157,817 -3^337 6,710 3,562 530 2,618 Half year: 1965—Jan.-June.......... 53,569 17,232 2,377 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 2,484 5,026 129 -2,671 July-Dec............ 49,185 19,310 2,413 65,681 64,063 17,627 1,605 80,085 -14,404 11,042 3,370 213 7,459 Month: 1966—Mar...................... 11,297 2,745 166 13,804 10,193 2,996 1,103 12,086 1,718 -1,971 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 17,151 4’796 1,413 20,391 9,439 3,531 918 12,052 8,338 -1'639 2’319 -45 — 3,913 July.......... 5^702 2'837 '416 8,103 101263 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 5,6U 3,103 130 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 50,977 2,684 1,056 12,604 -5,080 2,270 -698 34 2,935 Nov.................... 7,394 3,717 336 10,698 10,386 2,617 -651 13,654 -2,955 2,468 989 134 1,345 Dec.......... 10,606 3,033 716 12,845 9,512 3,403 370 12’545 299 675 166 -267 776 1967—Jan....................... 9,386 2,612 684 11,251 9,987 2,673 1,019 11,641 -390 -374 -477 -249 351 Feb...................... 7,'757 4,696 77 12,308 9,459 2,406 13 I 1,852 456 515 1,649 59 -1,194 Mar....................... 1095 3,543 364 14,490 11',699 2; 677 1,208 131167 1,323 859 1,082 -127 -96 Effects of operations on Treasurer’s account Net operating transactions Net financing transactions Change in Treasurer’s account cash balances (end of period) Period Agencies & trusts Change Operating bal. s B d u u e r o d p fi r g c l u e it s t f T u r n u d s s t 3 a C c le co a u ri n n t g s is M s s a u e o a r c f k n . 3 e ce t i I n G n s v e o U e c v . s , S t 3 t , , . p d g d u i r r e i o b n e b s l c i s t c t T o re H u a t e s s l i d d u e ry a T c u r c r e e o a r u ’ s s n ­ t Balance B F a . n R k . s a l T a o c n a a c d t x n s . O as n t s h e e e t t s r Fiscal year—1963 ........... -6,266 1,143 {22 1,022 -2,069 7,659 -74 1,686 12,116 806 10,324 986 1964 -8,226 1,446 948 1,880 -2,775 5,853 206 -1,080 11,036 939 9,180 917 1965 -3,435 1,410 -804 1,372 -2,356 5,561 174 1,575 12,610 672 10,689 t,249 1966..... -2,251 -12 -956 4,077 -3,562 2,633 132 -203 12,407 766 10,050 1,591 Half year: 1965—Jan.-June..... 5,154 1,918 452 1,114 -2,850 -667 -193 5,316 12,610 672 10,689 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 1,536 -111 3,481 -5,026 -997 660 5,825 12,407 766 10,050 1,591 July-Dec............ -14,878 1,683 -1,021 1,630 -3,370 9,412 -149 -6,396 6,011 416 4,096 1,499 Month: 1966—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 1,705 May................... -603 2,180 -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 -139 -850 6,944 1,614 4,014 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 4,181 1,427 Nov..................... -2,993 1,101 -1,120 -55 -989 2,523 84 -1,618 4,799 299 3,041 1,459 Dec................ 1,093 -371 -78 767 -166 -92 -60 1,213 6,011 416 4,096 1,499 1967—Jan....................... -601 -60 583 76 477 -450 -134 158 6,170 813 3,687 1,670 Feb...................... -1,702 2,290 -123 -241 -1,649 756 89 -760 5,410 386 3,299 1 ,725 Mar..................... -304 866 970 -462 -1,082 1,321 -101 1,411 6,821 828 4,430 1,563 1 Primarily interest payments by Treasury to trust accounts and accumu­ 6 Monthly and half-year figures do not add to fiscal year totals because lations to U.S. employee trust funds. of classification revisions. 2 Includes small adjustments not shown separately. ? Seasonally adjusted data include accelerated corporate tax payments 3 Includes net transactions of Govt.-sponsored enterprises, in 1965 and 1966; data for 1966 also include adjustments for initiation of 4 Primarily (1) intragovt, transactions, (2) noncash debt, (3) clearing graduated withholding of personal income taxes and change in schedule accounts. for depositing withheld and OASI taxes. 5 Includes technical adjustments not allocated by functions. Note.—Based on Treasury Dept, and Bureau of the Budget data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FEDERAL FINANCE 821 FEDERAL FISCAL OPERATIONS: DETAIL (tn millions of dollars) Cash, receipts from the public Income taxes Excise taxes Social ins. taxes Period Total W he I i n t l h d 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. E a g s n t i a f d t t e t C o u m s s ­ r m e I a e p n n n a t d . t y s ­ fu R n e d ­ s 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: 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 July-Dec... 65,681 24,641 3,983 12,045 6,762 3,105 2,313 13,472 11,658 1,563 1,258 1,017 1,493 1,142 2,152 Month: 1966—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 ! ,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 I ,249 539 530 3,999 3,185 770 224 179 174 198 263 Sept............... 14,748 3,792 2,608 4,547 I ,156 550 354 1,894 1,806 46 214 170 191 158 334 Oct................ 7,523 3,434 277 797 1 ,065 564 341 1,385 1,248 93 206 170 197 212 204 Nov.............. 10,698 5,155 148 580 1 ,212 600 375 2,839 2,329 469 196 179 216 185 358 Dec............... 12,845 3,791 427 4,636 1 ,110 492 356 1,863 1,775 52 204 161 536 168 285 1967—Jan................. 11,251 3,674 3,075 823 1,147 496 340 1,808 1,615 146 269 160 219 115 191 Feb............... 12,308 5,268 944 635 1 ,075 n.a. 367 4,164 3,301 820 224 134 187 550 227 Mar............... 14,490 4,157 859 6,728 1 ,539 n.a. 603 2,473 2,366 61 270 170 178 2,204 320 Cash payments to the public Period Total s t f i e N o d n n e a s ­ a e ­ l af I f n ai t r i s , 6 s S e p r a e a r c ­ c e h t A u c g r u e r l­ i­ 6 so N u u r r r e a c a ­ t e l ­ s t m r C a a e o n n r m s d c p e ­ . c H d i o n e o m g v u e m s & l. ­ , l w a H e b e l o a fa r l , t r h e & , 6 E t d io u n ca­ e V ra e n t­ s In e t s e t r­ G g e o e r v a n t l , ­ Fiscal year—1963.......... 113,751 53,429 4,066 2,552 5,362 2,609 5,777 -268 25,624 1 ,214 5,971 7,427 1,953 1964 120,332 54,514 3,837 4, 171 5,416 2,774 6,545 1,674 27,191 I ,299 6,107 8,011 2,221 1965.......... 122,395 50,790 4,794 5,093 5,142 2,921 7,421 908 28,191 1 ,497 6,080 8,605 2,341 1966.......... 137,817 58,464 4,463 5,933 4,114 3,229 6,784 3,425 33,249 2,780 5,556 9,215 2,404 Half year; 1965—Jan.-June.... 60,885 26,219 2,766 2,761 1 ,712 1,270 3,131 375 14,562 852 3,134 4,376 1,203 July-Dec.......... 67,035 27,085 2,226 2,838 3,313 1,764 3,955 1,157 16,374 706 2,590 4,367 1 ,259 1966—Jan.-June .... 70,781 31,377 2,044 3,094 935 1,407 2,84! 2,198 16,990 2,072 3,031 4,856 1,144 July-Dec.......... 80,086 33,850 2,457 2,855 3,630 2,002 4,372 1,801 18,192 1,755 3,475 4,627 1,386 Month: 1966-—-Mar.............. 12,086 5,652 427 519 '277 ’•222 '504 ’•338 '2,966 460 594 '495 198 Apr.................... 11,325 5,076 527 502 -188 201 439 959 2,793 247 346 502 197 May.................. 12,821 5,025 461 569 228 339 518 362 2,778 496 540 1 ,401 227 June.................. 12,052 6,410 174 571 -34 212 286 -47 2,916 370 414 613 137 July.................... 12,927 4,959 303 494 588 314 642 1,236 2,853 270 505 347 231 Aug.................... 15,206 5,675 438 441 1,380 401 797 33 2,923 359 496 1,435 230 Sept................... 13,150 6,035 375 483 909 329 807 218 3,047 368 593 368 243 Oct..................... 12,604 5,532 637 493 5 83 323 763 362 3,043 281 600 373 207 Nov.................... 13,654 5,557 529 458 137 325 690 -15 3,151 213 617 1,506 265 Dec.................... 12,545 6,092 175 486 33 310 673 -33 3,175 264 664 598 210 1967—Jan...................... 11,641 6,198 535 464 40 236 460 -895 3,398 87 548 415 200 Feb..................... 11,852 5,806 -56 390 253 266 515 -635 3,433 302 645 1,571 175 Mar.................... 13,167 7,025 389 468 159 251 562 -677 3,648 338 706 653 216 1965 1966 1967 1965 1966 1967 Item II III IV I II III IV I II III IV I II III IV I Seasonally adjusted Not seasonally adjusted Cash budget: Receipts.................................... 732.6 30.6 30.7 33.7739.6 36,3 36.8 38.8 37.7 29.2 25.8 33.3 46,2 34.6 31,1 38.0 Payments......................... 32.4 32.1 33.1 36.9 36.0 40.0 37.8 39. 1 32.6 33.1 34.0 34.6 36.2 41.3 38.8 36.7 Net.............................................. .3 -1.5 -2.4 -3.2 3.7 -3.7 -1.0 -.3 5, 1 -3.9 -8.1 — 1.3 10.0 -6.7 -7.7 1.4 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

822 U.S. GOVERNMENT SECURITIES MAY 1967 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 Total Total Marketable Nonmarketable End of period d g e ro b s t s 1 d d g e i r r o b e s t c s t 2 Total C ve o r n t­ ­ i S ss p u e e c s ia l 6 Total Bills C c e a r te ti s fi­ Notes Bonds 4 b i o b n le d s Total 5 S in a g v s ­ bonds 1941—Dec............................................... 64.3 57.9 50,5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945—Dec.......................................... 278.7 278.1 255,7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec............................................... 257.0 256.9 225,3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29.0 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 43.7 318.7 317.9 267.5 212,5 56.5 59,0 97.0 3.0 52.0 49.7 46.1 1965—Dec............................................... 321.4 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52,9 50.3 46.3 1966—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 48.8 320.4 319.9 264.3 209.1 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 50.7 324.9 324.4 266.5 211.4 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 63.9 5.9 48.3 99,2 2.7 52.4 50.8 52.6 Dec..................................... 329.8 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Jan................................................ 329.4 328.9 273.7 218.8 65.5 5.9 48.3 99.1 3.7 52.2 50.8 51.3 Feb................................................ 330.1 329.6 274.2 219.2 65.9 5.9 48.4 99.1 2.6 52.3 50.9 51.5 Mar............................................... 331.5 330.9 274.9 219.9 66.6 5.9 48.4 99.0 2.6 52.4 51 .0 52.1 Apr................................................ 328.3 327.8 272.2 217.1 64. 1 5.9 48. 1 99.0 2.6 52.5 51. 1 51.6 1 Includes non-interest-bearing debt (of which $266 million on Apr. 30, bonds, foreign currency series, foreign series, and Rural Electrification 1967, was not subject to statutory debt limitation) and guaranteed secu­ Administration bonds; before 1954, armed forces leave bonds; before rities not shown separately. 2 Excludes guaranteed securities. 1956, tax and savings notes; and before Oct. 1965, Series A investment 3 Includes amounts held by U.S. Govt, agencies and trust funds, which bonds. totaled $18,591 million on Mar. 31, 1967. 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. 5 Includes (not shown separately): depositary bonds, retirement plan OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by—• Held by the public E pe n r d i o o d f T g d r o e o t b s a s t l ag G U t e a r o u n n .S v c s d 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 M s b a a u v n i t n u k g a s s l p I c n a a o n s n m c u ie e r ­ s ­ r c O a o t t i r h o p e n o r s ­ g S l a o o t n c a v d a t t s e l . Savi I n n g d s i vidu O al t s her n F a i o n t a i r o t n e e n d i r g a ­ n l 1 O i m n to v t i h r 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 7.3 46.2 19.4 2.7 5.7 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 20.5 13.0 11.2 1961—Dec.................... 296.5 54.5 28.9 213.1 67.2 6.1 11.4 18.5 19.0 46,4 19.5 13,4 11.6 1962—Dec.................... 304.0 55.6 30.8 217,6 67.2 6.1 11.5 18.6 20.1 46.9 19.2 15.3 12,7 1963—Dec.................... 310.1 58.0 33.6 218.5 64,3 5.8 11,3 18.7 21.1 48.1 20.1 15.9 13,3 1964—Dec.................... 318.7 60.6 37.0 221.1 64.0 5.7 11.1 17.9 21,2 48.9 21.1 16.7 14.5 1965—Dec..................... 321.4 61.9 40.8 218.7 60.8 5.4 10.4 15.5 22.9 49,6 22.7 16.7 14.7 1966—Mar.................... 321.5 61.7 40.7 219.0 57.0 5.5 10.2 15.7 24.4 49.7 24.9 16.0 15.7 Apr..................... 320. 1 60. 5 40.7 218.9 57.0 5.3 10. 1 15.7 25.1 49.7 24.6 15.7 15.6 May................... 322.8 64.5 41.5 216.9 55. 1 5.2 10.0 16.2 25.3 49.7 24.3 15.6 15. 3 June.................. 320.4 66.7 42.2 211.5 54.7 5.1 9.7 13.9 24.5 49.8 24.1 15.4 14.3 July.................... 319.8 66.4 42.4 211.0 53.4 5.0 9.7 14.2 24.8 49.9 24.2 15.3 14.4 Aug.......... 324.9 69.3 42.5 213.1 54.7 5.0 9.7 14.3 24.6 49.9 24.8 15.4 14.7 325.3 69.2 42.9 213.2 54.4 5.0 9.7 13.5 24.2 49.9 25.8 15.2 15.3 Oct.......... 327.4 68.0 43.0 216.4 54.9 4.8 9.6 14.9 24.2 49.9 26.2 15.2 16.5 Nov.................... 329.9 68.9 43.9 217.1 55. 1 4.8 9.7 16.0 24.1 50. 1 25.8 15.3 16,2 Dec.................... 329.8 68.8 44.3 216.7 57.2 4.7 9.6 14.7 23.8 50.2 25.5 14.3 16.7 1967—Jan...................... 329.4 68.2 43.5 217.7 57.4 4.5 9.5 15.0 23.4 50.1 25.8 13.6 18,2 Feb..................... 330.1 69.6 44.0 216.6 56.9 4.6 9.3 15.1 23.7 50.3 25.4 '13.8 17.6 Mar.................... 331.5 70.7 44.9 215.9 57.6 4.5 9.2 14.2 23.5 50.4 25.5 14.2 16.8 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

MAY 1967 U.S. GOVERNMENT SECURITIES 823 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: 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—Dec. 31......................................................................... 218,025 105,218 64,684 40,534 59,446 28,005 8.433 16,923 1967—Feb. 28.......................................................................... 219,245 101,549 65,889 35,660 66,717 25,655 8,431 16,893 Mar. 31......................................................................... 219,914 102,242 66,583 35,659 66,722 25,650 8,430 16,870 U.S Govt, agencies and trust funds: 1964—Dec. 31.................................................. 12,146 1 ,731 1,308 424 2,422 3,147 1,563 3,282 1965—Dec. 3!............................................................... 13,406 1,356 968 388 3,161 3,350 2,073 3,466 1966—Dec. 31............................................................... 14,591 2,786 1,573 1,213 3,721 2,512 2,093 3,479 1967—Feb, 28................................................................ 15,938 3,626 2,711 915 4,256 2,444 2, 110 3,503 Mar. 31............................................................... 16,411 4,091 3,150 941 4,263 2,444 2,110 3,504 Federal Reserve Banks: 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—Dec. 31.............................................................. 44,282 35,360 12,296 23,064 7,502 1,007 153 260 1967—Feb, 28................................................................ 43,971 32,663 12,1(9 20,544 10,053 853 153 249 Mar. 31............................................................. 44,908 33,489 12,937 20,552 10,139 871 155 255 Held by public: 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—Dec. 31.............................................................. 159,152 67,072 50,815 16,257 48,224 24,485 6,187 13,184 1967—Feb. 28................................................................ 159,336 65,261 51,060 14,201 52,406 22,358 6,168 13,141 Mar. 31............................................................... 158,595 64,661 50,495 14,166 52,320 22,337 6,165 13,111 Commercial banks: 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—Dec. 31..................................................... 47,182 15,838 8,771 7,067 21,112 9,343 435 454 1967—Feb. 28...................................................... 47,099 13,831 7,570 6,261 23,568 8,767 435 498 Mar. 31..................................................... 47,748 14,226 7,970 6,256 23,723 8,842 449 509 Mutual savings banks: 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—Dec. 31..................................................... 4,532 645 399 246 1,482 1,139 276 990 1967—Feb. 28...................................................... 4,418 605 385 220 1,597 958 283 975 Mar. 31.................................................... 4,344 586 369 217 1,582 924 282 970 Insurance companies: 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—Dec. 31.................................................... 8,158 847 508 339 1,978 1,581 1,074 2,678 1967—Feb. 28...................................................... 7,879 687 397 290 2,049 1,396 1,078 2,668 Mar. 31.................................................... 7,837 715 438 277 1 ,998 1,386 1,081 2,656 Nonfinancial corporations: 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—Dec. 31..................................................... 6,323 4,729 3,396 1,333 1,339 200 6 49 1967—Feb. 28...................................................... 6,257 4,529 3,507 1,022 1 ,505 171 6 47 Mar. 31..................................................... 5,342 3,679 2,618 1,061 1,429 182 6 45 Savings and loan associations: 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—Dec. 31..................................................... 3,883 782 583 199 1,251 1,104 271 475 1967—Feb. 28...................................................... 4,029 850 660 190 1,430 1,014 263 472 Mar. 31.................................................... 4,003 844 653 191 1,417 1,005 266 471 State and local governments: 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—Dec. 31..................................................... 15,384 5,545 4,512 1,033 2,165 1,499 1,910 4,265 1967—Feb. 28...................................................... 15,174 5,702 4,869 833 2,328 1,344 1,716 4,084 Mar. 31..................................................... 14,980 5,592 4,726 866 2,339 1,328 1,721 4,000 All others: 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—Dec. 31.................................................... 75,690 38,685 32,646 6,039 18,896 9,619 2,215 4,275 1967—Feb. 28...................................................... 74,481 39,057 33,672 5,385 19,931 8,709 2,387 4,397 Mar. 31..................................................... 74,341 39,019 33,721 5,298 19,832 8,670 2,360 4,460 Note.—-Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,895 commercial banks, 503 mutual savings Ownership. ’ banks, and 764 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 per cent by 506 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: (1) in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

824 U.S. GOVERNMENT SECURITIES MAY 1967 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Dealers and brokers securities Total Com­ W 1 y it e h a in r ye 1 a -5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U s . e S c . u G rit o ie v s t, Other m b e an rc k i s al o A th l e l r 1966—Mar....................................... 2,100 1,650 231 180 38 683 69 851 495 188 Apr........................................ 1,823 1,550 156 91 26 515 5! 740 517 218 May...................................... 1,882 1,564 202 86 30 514 78 746 543 221 June...................................... 1,927 1,614 186 94 33 646 69 729 483 278 July..................................... 1,820 1,560 155 76 29 607 64 726 423 284 Aug........................................ 1,785 1,497 189 62 38 573 78 721 413 175 Sept....................................... 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 ,863 334 118 24 849 94 896 501 204 Dec........................................ 2,712 2,059 427 160 66 1,114 121 978 500 232 1967—Jan......................................... f2,266 1,827 ^288 102 r49 r912 110 788 453 281 Feb........................................ 2,186 1,744 331 79 32 774 90 826 496 217 Mar....................................... 2,434 2,012 296 87 39 1,057 140 794 443 222 Week ending— Mar. 1.............................. 2,651 2,254 265 95 37 982 106 967 595 158 8 2,374 1 ,980 282 69 43 1,022 135 772 446 182 15 2,586 2,090 363 89 45 1,135 173 813 466 191 22............................... 2,598 2,158 311 96 32 1 ,232 148 776 441 G09 29.............................. 1,775 1,436 226 75 39 655 95 664 361 ^201 Apr. 5.............................. 2,397 2,005 263 93 36 923 103 822 550 193 12.............................. 2,435 2,012 298 96 30 1 ,106 93 806 429 224 19.............................. 1,848 1 ,564 199 63 22 698 55 587 620 221 26......................... 1,814 1 ,544 158 85 27 663 62 696 392 235 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 Govt. Period AR Within 1-5 Over s a e g c e u n ri c t y ie s Period sou A r l c l es New Else­ C t o io r n p s o r 1 a­ o A th l e l r maturities 1 year years 5 years Y C o it r y k where 1966—Mar............ 1,963 2,045 -101 20 356 Apr............. 2,867 2,798 6 63 814 1966 Mar.............. 1,958 365 340 1,073 180 May.......... 2,239 2,061 142 36 675 Apr............... 3,249 1,209 669 1 ,155 217 June 1,548 1,353 92 102 665 May...... 2'787 '744 602 1 067 375 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............ 2,229 2,043 108 78 269 Aug.. 2'229 394 430 925 480 Oct.............. 2,500 2,224 109 166 353 Sept....... 2310 725 615 731 340 Nov............ 3,756 2,925 639 193 429 Oct................. 2'346 508 580 823 435 Dec............. 4,158 3,447 530 181 502 Nov....... 3'575 605 687 1,614 668 Dec....... 4'233 999 893 1,412 929 1967—Jan.............. 4,861 4,138 431 292 560 Feb............. r4,442 3,527 681 235 467 1967—Jan................ 4,925 1,565 1 ,678 983 700 Mar...... 4,084 3,362 475 248 415 Feb............... 4,530 1,391 1 '331 1 ,069 740 Mar............... 4,298 1,289 1361 825 723 Week ending—• Week ending— Feb. 1.. 5,100 4,397 419 283 526 8. . 4,785 3,635 874 277 470 1967—Feb. 1... 5,085 1,698 1,939 993 455 15. . 4,350 3,389 716 245 481 8. . . 4,670 1,639 1 ,530 940 561 22.. 4,122 3,327 588 208 472 15. . . 4,347 1,380 1,232 981 754 22. . . 4,510 1,193 1,136 1,228 952 Mar. 1 . . 4,214 3,566 464 186 431 8. . 3,804 3,130 464 211 370 Mar. 1 . .. 4,434 1,258 1 ,343 1 ,131 703 15. . 4,379 3,625 500 255 372 8. . . 3,975 1 ,064 1,235 963 713 22. . 4,087 3,331 591 266 433 15. . . 4,360 1,381 1,329 805 845 29. . 4,024 3,298 465 261 467 22. . . 4,595 1 ,358 1 ,724 749 763 29. . . 4,253 1,372 1 ,504 774 602 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

MAY 1967 GOVERNMENT SECURITIES 825 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, APRIL 30, 1967 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Apr. 30, 1967...................... 1 ,401 Oct. 5,1967.................. 1,001 Apr. 1,1969..............U/2 61 Oct. 1, 1969.............4 6,254 May 4, 1967...................... 2 ’ 303 Oct. 13, 1967....................... 1,001 Oct. 1,1969..............li/2 159 Feb. 15, 1970..............4 4,381 May 11 1967 . 2 ’ 300 Oct. 19, 1967....................... 1 ,001 Apr. 1’1970..............U/2 88 Aug. 15’ 1970..............4 4^ 129 May 18’ 1967...................... 2,302 Oct. 26, 1967....................... 1,000 Oct. 1’1970..............I/2 113 Aug. 15, 1971..............4 2; 806 May 25 1967. , 2'300 Oct. 31, 1967....................... 1,406 Nov. 15, 1970..............5 7,675 Nov. 15, 1971..............3% 2,760 May 3t’ 1967...................... 1,401 Nov. 30, 1967....................... 1 ,400 Apr. 1,1971..............U/2 35 Feb. 15, 1972..............4 2,344 June I'1967... . 2’309 Dec. 31, 1967....................... 1,401 May 15, 1971..............5’4 4,265 Aug. 15, 1972..............4 2,579 2'301 Jan. 31, 1968....................... 901 Oct. 1,1971..............1’4 72 Aug. 15’ 1973.............4 3,894 2'302 Feb. 29, 1968....................... 901 Nov. 15, 1971..............5% 1 ,734 Nov. 15^ 1973.............4% 4,355 June 22’ 1967* 5 514 Mar. 31, 1968....................... 900 Feb. 15, 1972.............4% 2,006 Feb. 15’ 1974.............4’4 3,130 June 22,1967...................... 2,306 Apr. L 1972..............|i/2 ' 2 May 15; 1974.............4# 3^91 June 29, 1967...................... 2,302 Nov. 15, 1974..............3’4 2,242 June 30,' 1967...................... 1,502 May 25, 1975-85.. .4*4 1,217 July 6^ 1967....................... 2,302 Certificates Treasury bonds June 15, 1978-83... 3W 1,575 July 13, 1967....................... 2,302 Aug. 15, 1967..............5 % June 15, 1962-67.. .2’A 1,429 Feb. 15, 1980.............4 2,604 July 20J967....................... 2'301 Dec. 15, 1963-68...214 1,789 Nov. 15; 1980..............3’4 1,910 July 27’ 1967...................... 2,301 June 15, 1964-69... 2’4 2,545 May 15, 1985..............3’4 1,122 July 31,' 1967....................... 1,495 Dec. 15, 1964-69...2>/i 2,492 Aug. 15, 1987-92. ..4'% 3,817 Aug. 3’ 1967....................... 1 '002 Treasury notes Mar. 15, 1965-70.. .2’4 2,288 Feb. 15, 1988-93.. .4 250 Aug. 10’ 1967...................... I '000 May 15, 1967..............4’4 9,748 Mar. 15, 1966-71... 2’4 1,324 May 15, 1989-94... 4’4 1,560 Aug. 17’ 1967...................... 1 ,'001 Aug. 15,' 1967..............3% 2,929 June 15, 1967-72...2’4 1,262 Feb. 15,1990..............3'/i 4,891 Aug. 24^ 1967................... , 1 ,000 Aug. 15, 1967..............4 7/8 2,117 Sept. 15, 1967-72.. .2’4 1 ,952 Feb. 15, 1995..............3 1,936 2 505 Oct. 1,1967...............1*4 457 Nov. 15, 1967..............3’4 2,019 Nov. 15, 1998..............3^ 4,388 Sept. 7, 1967...................... 1 ,000 Nov. 15' 1967..............4^ 8,135 Dec. 15; 1967-72. ..2’4 2/41 Sept. 14’ 1967....................... 1,002 Feb. 15, 1968..............5% 2,635 May 15, 1968..............3% 2,460 Sept. 21, 1967 .......... 1 ,000 Apr. 1,1968...............11/2 '212 Aug. 15, 1968..............3% 3,747 Convertible bonds Sept. 28 1967...................... 1 ,000 May 15, 1968..............4% 5,587 Nov. 15. 1968.............3 7/8 I ,591 Investment Series B Sept. 30,' 1967...................... 1 ,’ 400 Oct' 1,1968..............DA 115 Feb. 15; 1969..............4 3,728 Apr. 1, 1975-80... 2 34 2,595 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 amount Period Total G o e b a n l l e i­ r­ R n e u v e e­ PHA’ G lo U o a .S v n . t s , State S di p s a s t e n t a c r d t i i , c a t l Other2 d e e re li d v ­ 3 Total c E a d tio u­ n b R r a i o d n a g d d e s s U itie ti s l­ 4 H in o g u s s­ V a e n a te s id * r­ p O p o t u s h e r e ­ s r gations auth. 1960 7,292 4,771 2,095 302 125 1,110 1,984 4,198 7,102 7,247 2,405 1,007 1,316 426 201 1,891 1961 8,566 5,724 2,407 315 120 1,928 2,165 4,473 8,301 8,463 2,821 1,167 1,700 385 478 1,913 1962 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1963 .................... 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1 ,965 626x 50 3,311 1966 .................... 11,362 6,787 3,938 325 312 2,573 4, 126 4,663 n.a. 11,209 3,849 1,355 1,877 547 ......3..,..5..8...0. 1966--Feb......... 867 614 240 13 190 172 505 n.a. 858 208 68 137 444 Mar.. . . 879 554 201 96 28 151 312 416 n.a. 869 380 25 160 99 205 Apr......... 1,211 815 350 46 454 366 392 n.a. 1,194 330 105 141 2 617 May.... 906 507 378 21 118 319 469 n.a. 905 251 134 280 2 237 June.... 1,143 587 395 110 51 275 429 439 n.a. 1,141 624 200 124 192 July.. . . 699 406 273 20 174 244 281 n.a. 698 226 142 73 8 249 Aug........ 775 453 287 35 134 275 366 n.a. 773 279 32 103 6 353 Sept.. . . 1 ,031 440 453 120 18 7! 581 380 n.a. 1,018 217 218 222 124 238 Oct.......... 751 539 178 34 208 256 287 n.a. 747 299 12 r99 9 328 Nov.. . . 971 598 362 12 228 337 406 n.a. 965 379 108 225 40 212 Dec........ 908 384 513 ............... 11 100 548 261 n.a. 855 269 280 85 131 .............9..1. 1967-—Jan.......... 1,377 932 419 27 509 329 539 n.a. 1,377 406 222 155 1 593 Feb......... 1,162 878 277 ............... 7 254 269 639 n.a. 1,129 450 131 91 ♦ ...........4..5..6. 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 4 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

826 SECURITY ISSUES MAY 1967 TOTAL NEW ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all issues 1 all corporate issues 6 Noncorporate Corporate New capital Re­ Period Bonds Stock tire­ Total US. U.S. 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 c t n a a d t l e 4 Other 5 Total Total P lic u l b y ­ va P t r e i­ ly fe P r r r e e ­ d C m o o m n ­ Total m N o e n w ey 7 p p o u se r­ s s ri e ti c e u s ­ offered placed 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 r....................... 35,199 10,827 1,168 10,107 887 12,211 10,856 4,713 6,143 343 1 .011 12,049 10,523 8,898 1 ,625 1,526 1964......................... 37;122 10^56 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 13.720 5^570 8,150 725 1 ,547 15,80! 14,805 13,063 1 .741 996 1966......................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 17,841 17,601 15,806 1,795 241 1966—Feb............ 3,008 345 503 845 42 1,273 1,143 560 583 75 55 1,259 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 3,668 426 392 1,181 86 1 ,582 1,372 628 743 28 182 1,559 1,553 1,399 154 7 May.......... 3,182 412 699 877 88 1,106 H037 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 2,245 119 27 July.......... 3,407 411 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 2,518 408 450 736 32 892 755 499 256 31 106 876 829 783 46 46 Nov.......... 6; 686 3,738 800 950 83 1,115 1 ,004 569 435 50 61 1,098 1,086 1 ,033 52 12 Dec............ 3,277 373 239 923 81 1,661 1 ,535 980 555 20 106 1,643 1,635 1,363 273 8 5,094 494 1,251 1,450 210 1 ,688 1 ,608 712 896 45 36 1,672 1,666 1 ,557 110 6 Feb............ 7; 542 4, 154 783 1,159 9 1 437 1 ,282 870 412 16 139 1,418 1 316 1J96 20 2 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing Commercial and Transportation Public utility Communication Real estate miscellaneous and financial 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 1959............................................................. 1,941 70 812 28 942 15 3,189 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 1,435 382 2,248 22 1962............................................................. 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 1963r........................................................... 3,272 199 756 53 861 87 1,939 703 733 359 2,962 125 1964............................................................. 2,772 243 1 ,024 82 941 32 2,445 280 2,133 36 3,723 80 1965............................................................. 5,015 338 1 ,302 79 967 36 2,546 357 847 92 4,128 93 1966.......................................................... 6,855 125 1 ,356 44 1,939 9 3,570 46 1,978 4 1,902 14 1966—Feb................................................ 530 6 100 8 94 * 241 4 160 ♦ Ill 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................................................ 331 46 38 39 254 97 71 Nov............................................... 228 2 58 204 320 10 168 107 Dec............................................... 673 4 93 .................. 266 4 409 •............... 152 .................. 42 .................. 1967—Jan................................................ 684 5 106 .................. 136 .................. 226 .................. 281 .................. 233 1 Feb............................................... 581 I 69 .................. 137 .................. 279 ................. 105 .................. 246 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. s All issues other than those for retirement of securities. 3 Issues not guaranteed. * 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 tn 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

MAY 1967 SECURITY ISSUES 827 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 c v o e s s .1 t. Other In c v o e s s . t 1 , Other In c v o e s s .1 t. Other 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.............................. 18,826 8,290 10,536 10,715 4,077 6,637 4,363 3,748 1,895 2,317 2,468 1 ,431 1965.............................. 21,535 10,025 11,511 12,747 4,649 8,098 5,583 3,205 2,134 3,242 3,450 -37 1966.............................. 26,327 9,567 16,761 15,629 4,542 11,088 6,529 4,169 2,025 3,000 4,504 1,169 1965—IV.................... 5,912 2,847 3,065 3,261 1,178 2,084 1,873 778 657 1,012 1 ,216 -235 1966—1....................... 7,663 3,044 4,619 4,568 1,335 3,233 2,085 1 ,010 557 1,152 1,528 -142 11..................... 7,517 2,233 5,286 3,993 1,153 2,841 1,518 2,006 548 532 r970 1 ,475 Ill................... 5,534 1 ,756 3,777 3,732 943 2,789 1 ,271 531 490 323 r781 207 IV.................... 5,615 2,535 3,080 3,336 1,111 2,225 1,657 622 431 993 1,226 -371 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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 2,753 1965.............................. 2,606 -570 614 -70 185 -1 1,342 96 644 518 2,707 3,440 1966.............................. 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 4,414 1965—.IV.................... 612 -243 163 -10 52 -3 215 -189 124 130 918 1,296 1966—1....................... 1,440 -543 169 49 348 28 756 166 249 168 270 1,518 II..................... 950 657 232 -72 166 648 679 119 549 157 264 937 Ill................... 1,198 58 143 -22 218 16 469 112 405 103 356 721 IV.................... 736 -140 72 -553 224 26 755 136 465 147 -26 1,239 1 Open-end and closed-end companies. exclude foreign and include offerings of open-end investment cos., sales of 2 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 ti d o e n m s p­ s N al e e t s Total 2 po C s a it s io h n 3 Other Sales 1 Re ti d o e n m s p­ s N al e es t Total 2 po C s a it s io h n3 Other 1955 .................. 1,207 443 765 7,838 438 7,400 1966—Mar. . ’■532 *183 348 36,173 2,040 34,133 1956.................. 1,347 433 914 9,046 492 8,554 Apr,.. *475 *192 284 37,136 2,107 35,029 1957.................. 1,391 406 984 8,714 523 8,191 May.. *450 *189 261 35,453 2,278 33,175 1958.................. 1,620 511 1,109 13,242 634 12,608 June.. *350 *163 186 35,429 2,337 33,092 July... 363 153 210 35,082 2,472 32,610 1959.................. 2,280 786 1,494 15,818 860 14,958 Aug... 357 187 170 32,553 2,657 29,896 1960.................. 2,097 842 1,255 17,026 973 161053 Sept... 327 145 182 32,223 3,036 29,187 1961.................. 2,951 1,160 1,791 22,789 980 21,809 Oct.. . 329 133 196 33,483 3,244 30,239 1962.................. 2,699 1,123 1 ,576 21,271 1,315 19,956 Nov... 295 143 152 34,497 3,206 31,291 Dec.. . 300 151 149 34,829 2,971 31,858 1963.................. 2,460 1,504 952 25,214 1,341 23,873 1964.................. 3’404 1'875 1,528 29'116 1,329 27,787 1967—Jan.... 391 183 209 37,230 2,869 34,361 1965.................. 4’359 1,962 2,’395 35,220 1'803 33,417 Feb... 298 179 120 38,034 2,866 35,168 1966.................. *•4,671 *■2,005 2,665 34,829 2,971 31,858 Mar. . 389 226 163 39,443 2,682 36,761 1 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 Jess current liabilities. newly formed companies after their initial offering of securities. 3 Cash and deposits, receivables, ah 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

828 BUSINESS FINANCE MAY 1967 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1965 1966 Industry 1962 1963 1964 1965 1966 II III IV I II III IV Manufacturing Total (177 corps.): Sales.............................................................................. 136,545147,380 158,253 176.676195,159 45,344 41,946 46,644 47,068 49,718 46,302 52,529 Profits before taxes................................................ 15,330 17,337 18,734 22,043 23,075 6,021 4,723 5,782 5,934 6,355 4,884 6,059 Profits after taxes.................................................... 8,215 9,138 10,462 12,482 13,118 3,399 2,732 3,269 3,323 3,620 2,845 3,458 Dividends.................................................................... 5,048 5,444 5,933 6,541 6,909 1,629 1,435 2,066 1,569 1,740 1,631 1,969 Nondurable goods industries (78 corps.):1 Sales................................................................................ 52,245 55,372 59,770 64,635 73,281 16,131 16,320 16,732 17,299 18,374 18,399 19,127 Profits before taxes................................................ 5,896 6,333 6,881 7,818 8,918 1,985 2,014 2,014 2,132 2,334 2,296 2,120 Profits after taxes.................................................... 3,403 3,646 4,121 4,798 5,375 1,213 1,222 1,251 1,295 1,404 1,387 1,319 Dividends.................................................................... 2,150 2,265 2,408 2,541 2,717 607 617 711 650 668 673 726 Durable goods industries (99 corps,):2................ Sales.............................................................................. 84,300 92,008 98,482 112,041 122,418 29,214 25,626 29,912 29,769 31,344 27,903 33,402 Profits before taxes................................................ 9,434 11,004 11,853 14,225 14,350 4,036 2,709 3,768 3,802 4,021 2,588 3,939 Profits after taxes......................................... 4,812 5,492 6,341 7,684 7,832 2,186 1,509 2,018 2,027 2,208 1,458 2,139 Dividends.................................................................... 2,898 3,179 3,525 4,000 4,192 1,022 819 1,355 919 1 ,072 958 1,243 Selected industries: Foods and kindred products (25 corps.): Sales................................................................................ 13,457 14,301 15,284 16,345 18,250 4,082 4,194 4,200 4,331 4,491 4,705 4,723 Profits before taxes................................................ 1,460 1,546 1,579 1,710 1,907 433 452 436 438 488 504 477 Profits after taxes.................................................... 698 747 802 896 1,012 225 234 236 231 257 264 260 Dividends.................................................................. 425 448 481 508 564 125 126 133 137 142 139 146 Chemical and allied products (20 corps.): Sales............................................................................... 13,759 14,623 16,469 17,938 19,920 4,492 4,565 4,642 4,861 5,195 4,801 5,063 Profits before taxes................................................ 2,162 2,286 2,597 2,878 3,060 758 734 707 764 850 783 663 Profits after taxes.................................................... 1,126 1,182 1,400 1,627 1 ,736 424 409 409 431 475 441 389 Dividends.................................................................... 868 904 924 926 946 213 215 285 221 224 234 267 Petroleum refining (16 corps.): Sales.............................................................................. 15,106 16,043 16,589 17,878 21,376 4,449 4,454 4,571 4,811 5,195 5,476 5,812 Profits before taxes............................................... 1,319 1,487 1,560 1,946 2,430 473 504 530 580 586 622 606 Profits after taxes.................................................... 1,099 1,204 1,309 1,555 1,796 386 400 406 442 449 476 459 Dividends.................................................................... 566 608 672 752 826 183 187 200 203 207 204 212 Primary metals and products (34 corps.): Sales..................................................................... 21,260 22,116 24,195 26,530 28,513 7,091 6,657 6,167 6,522 7,447 7,309 7,235 Profits before taxes..................................... 1,838 2,178 2,556 2,951 3,304 865 695 623 691 933 857 823 Profits after taxes................................................... 1,013 1,183 1,475 1,704 1,921 493 402 373 399 537 490 495 Dividends.................................................................... 820 734 763 818 923 200 202 221 216 218 230 259 Machinery (24 corps.): Sales..................................................................... 19,057 21,144 22,558 25,148 30,112 6,305 6,286 6,785 6,955 6,889 7,538 8,730 Profits before taxes................................................ 1,924 2,394 2,704 3,116 3,606 817 764 788 877 911 851 967 Profits after taxes.................................................... 966 1,177 1,372 1,621 1,865 426 400 410 441 480 444 500 Dividends.......................................................... 531 577 673 775 913 187 189 207 217 225 226 245 Automobiles and equipment (14 corps.): Sales............................................................................... 29,156 32,927 35,338 42,662 43,639 11,450 8,281 12,032 11,718 11,728 8,044 12,149 Profits before taxes................................................ 4,337 5,004 4,989 6,263 5,269 1,883 756 1,797 1,780 1,615 312 1,562 Profits after taxes.................................................... 2,143 2,387 2,626 3,298 2,871 1,004 430 923 935 893 226 817 Dividends................................................................... 1,151 1,447 1,629 1,890 1,775 520 307 759 360 503 361 551 Public utility Railroad: Operating revenue........................................ 9,440 9,560 9,778 10,208 10,654 2,582 2,575 2,668 2,518 2,728 2,690 2,718 Profits before taxes........................................ 729 816 829 980 n.a. 259 248 328 213 330 280 n.a. Profits after taxes................................................... 572 651 694 816 n.a. 213 206 276 172 259 227 Dividends.................................................................... 367 383 438 468 n.a. 118 81 161 113 109 113 n.a. Electric power; Operating revenue.................................................. 13,489 14,294 15,156 15,961 17,036 3,822 3,901 4,011 4,456 4,063 4,268 4,249 Profits before taxes............................................... 3,583 3,735 3,926 4,116 4,396 949 1,036 977 1,215 987 1,153 1,041 Profits after taxes.................................................... 2,062 2,187 2,375 2,568 2,765 597 626 632 758 632 702 673 Dividends................................................................. 1,462 1,567 1,682 1,833 1,939 438 437 491 473 486 475 505 Telephone: Operating revenue................................................... 9,196 9,796 10,550 11,320 12,420 2,790 2,854 2,944 2,992 3,091 3,135 3,202 Profits before taxes...................................... 2,639 2,815 3,069 3,185 3,537 766 830 806 851 907 911 868 Profits after taxes.................................................... 1,327 1,417 1,590 1,718 1,903 419 447 432 460 488 487 468 Dividends.................................................................... 935 988 1,065 1,153 1,248 284 294 296 302 309 317 320 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 Bell 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

MAY 1967 BUSINESS FINANCE 829 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Profits In­ Profits Cash Undis­ capital Profits In­ Profits Cash Undis­ capital Year b t e ax fo e r s e c ta o x m e e s t a a f x te es r d d e i n v d i­ s tr p ib ro u f t i e ts d co a n t l s i l o o u n w m ­ p­ Quarter b t e ax fo e r s e c ta o x m e e s t a a f x t e e s r d d e i n v d i­ s tr p ib ro u f t i e ts d co a t n i l o s lo u n w m ­ p­ ances 1 ances 1 1959.................. 52.1 23.7 28.5 12.6 15.9 23.5 1965—1.... 74,5 30.7 43.8 18.1 25.7 35.2 1960.................. 49.7 23.0 26.7 13,4 13.2 24.9 IL... 74.5 30.7 43.8 18.8 25.0 36.0 III... 75,0 30.9 44.1 19.5 24.6 36.8 1961.................. 50.3 23.1 27.2 13.8 13.5 26.2 IV... 78.7 32.4 46.3 20.2 26.1 37.2 1962.................. 55.4 24.2 31.2 15.2 16.0 30.1 1963.................. 59.4 26.3 33.1 16,5 16.6 31.8 1966—1.. .. 82.7 34.1 48.7 20.9 27.8 37.7 1964................... 67.0 28.4 38.7 17.3 21.3 33.9 IL... 82.8 34.1 48.7 21.1 27.6 38.5 1965................... 75.7 31.2 44.5 19.2 25.3 36.3 III... 81.9 33.7 48.2 21.1 27.1 39.1 1966................ 82. 1 33.8 48.3 20.9 27.3 38.8 IV... 81.8 33.7 48. 1 20.7 27.4 39.7 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 G U o . v S t . .1 Other G U o . v S t . . 1 Other taxes 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—1................................ 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 ni............................ 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—I................................ 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 II.............................. 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 IV............................ 192.7 441.6 49.3 15.5 4.5 204.4 144.5 23.3 248.9 4.9 173.4 19.1 51.6 i 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 Non­ Mining Railroad Other u P t u ili b ti l e ic s n C i o ca m ti m on u s ­ Other t a ( r n S a n t A e ua ) . l durable 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..................................................... 60.63 13.99 13.00 1.47 1,98 3.44 8.41 5.62 12.74 19672..................... 63.00 14.64 13.30 1.58 1.48 3.94 9.15 18.91 1965—11............................................ 12.81 2.76 2.70 .33 .44 .77 1.71 1.24 2.85 50.35 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 15.29 3.51 3.27 .40 .55 1.00 2.09 1.42 3,06 60. 10 .......................................... 15.57 3.54 3.30 .37 .48 .82 2.36 1.36 3,33 61.25 iv..................................... 17.00 4.07 3.68 .38 .55 . 86 2.36 1.58 3,52 62.80 1967—I2........................................... 13.83 3.16 2.89 .35 .38 .78 1.84 4 42 62.60 IP......................................... 15.84 3.60 3.39 .40 .37 1.13 2.40 4.55 62.25 1 i 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

830 REAL ESTATE CREDIT MAY 1967 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nontarm Other Multifamily and Mortgage End of holders2 1- to 4-famify houses commercial properties4 type s period h A e o r l l s d l ­ tu F i t n i c i n o s ia a n t l i n ­ s ­ 1 a U c g i . e e S s n . ­ v o I i t a d n 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 n i c i n o i s a a n t l i n s ­ ­ 1 O h e o t r h s ld e 3 ­ r h e A o r l l s d l ­ Total tu F in t in i s o a t n i n ­ s , 1 O h e o th r l s d e ­ r Total tu F i t n i i n o s a n t n i s ­ , 1 O h e o th r l s d e ­ r w u F V n r H i d t A t A 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 13.4 320.5 213.7 185.1 28,6 106 8 71.6 35 2 81 2 239 3 1966*............. 366.0 280.9 15.8 69.3 23.3 8.4 14.9 342 7 225.4 194.0 31.4 117.3 78.5 38.8 84.0 258.7 1965—I.... 317.7 245.8 11.6 60.3 19.5 7.2 12.3 298.2 200.7 173.3 27.4 97.5 65.3 32.2 77.9 220.3 II... 325.9 252.2 11.7 62.0 20.2 7.4 12.8 305.7 205.1 177.4 27.7 100.6 67,4 33.1 78.7 227.0 III... 333.8 258.6 11.9 63.4 20.7 7.6 13.1 313.1 209.6 181.5 28.0 103.6 69.4 34.1 80.0 233.1 IV... 341.7 264.5 12.4 64.8 21.2 7.8 13.4 320.5 213.7 185.1 28.6 106,8 71.6 35.2 81.2 239.3 1966—1*... 348.2 269.3 13.5 65.4 21.8 8.0 13.7 326.4 216.9 187.9 29.0 109.5 73.3 36.2 82. 1 244.3 II*.. 355.5 274.4 14.4 66.7 22.5 8.2 14.2 333.0 220.7 190.9 29.8 112.4 75.2 37.2 82.6 250.4 III*.. 361.3 278.0 15.2 68.0 23.0 8.4 14.6 338.3 223.3 192.7 30.6 115.0 77.0 38.0 83.4 254.9 IVp.. 366.0 280.9 15.8 69.3 23.3 8.4 14.9 342.7 225.4 194.0 31.4 117.3 78.5 38.8 84.0 258.7 1 Commercial banks (including nondeposit trust companies but not savings and loan assns. trust depts.), mutual savings banks, life insurance companies, and savings 5 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>08 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 >76 23,482 6,520 2,654 14*308 8 >72 2’022 32,320 29'181 9,238 9,787 10,156 3 >88 51 1963........................................ 39,414 26,476 7 105 2 862 16,509 10>ll 2,327 36 >24 32*718 10,684 10,490 11 >44 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 >02 2 >88 21,997 14,377 2,911 44’617 40,096 13,791 11*408 14,897 4,469 52 1966*...................................... 54'704 47>96 1965—1.............................. 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 >67 38.214 13'036 11,322 13,856 4,202 5! 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 >69 52 1966—I*.............................. 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 IIP............................ 52,306 33’800 7'769 2,654 23 >77 15,478 3,028 45*883 41 >83 14,047 11J46 15 >90 4; 747 53 HI*.......................... 53'755 46,650 IV*.......................... 54,704 47,396 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 estimates included F.R. commercial bank cal! data and data from the Note.—Second and fourth quarters, Federal Deposit Insurance Corpo­ National Assn, of Mutual Savings Banks. ration series for all commercial and mutual savings banks in the United Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 REAL ESTATE CREDIT 831 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 ur A e - d a g n V u t A e a e - r ­ d Other 1 Farm 1 Total Total in F s H ur A e - d a g V n u t A e a e r - ­ d Other Farm 1945........................................................... 976 6,637 5,860 1,394 4366 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 46,902 43,502 10,176 6,395 26331 3300 1963........................................................... 9,172 8,306 1 '598 678 6,030 866 50,544 46’752 10,756 6’401 29,595 3 792 1964........................................................... 10,433 9,386 1 812 674 6,900 I ,047 55,152 50'848 11 384 6303 32 961 4 304 1965............................................................ 11,137 9’988 1 ,738 553 7,697 I J 49 60,013 55,190 12,068 6,286 36,836 4 823 1966p......................................................... 10,202 9,210 1,311 458 7’, 441 992 64,803 59*563 12311 6,209 40 943 5,240 1966—Feb.r.......................................... 820 710 144 38 528 110 60,840 55,948 12,244 6,296 37,408 4,892 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 61 310 56,653 12'299 6,262 38,092 5,057 May............................................ 816 709 93 31 585 107 62,101 56,980 12310 6344 38326 5,121 June 908 830 107 34 689 78 62,547 57381 12,330 6'225 38,826 5 166 July.............................................. 869 815 106 31 678 54 62,969 57378 12,335 6,210 39333 5*191 Aug....................................... 791 746 94 38 614 45 63,336 58,128 12,340 6,201 39,587 5,208 Sept.............................................. 781 735 83 35 617 46 63,683 58,457 12,344 6,191 39,922 5’226 Oct............................................... 718 675 86 41 548 43 64,007 58,775 12,362 6,190 40323 5,232 Nov...................... 708 673 89 41 543 35 64,353 59,118 12,393 6,195 40,530 5 335 947 888 82 47 759 59 64,803 59,563 12,411 6,209 40 943 5340 1967—jsn............................................... 766 699 89 47 563 67 65,193 59,965 12,441 6,222 41,302 5,228 Feb................................................ 684 617 75 32 510 67 65,503 60,259 12359 6’211 41'589 5 344 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 arc 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) New Period Ad­ Repay­ Members’ Period Total > s h c t o o r m u n c ­ e ­ H c p h o u a m s r 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 vances ments Total t S e h rm or t­ 1 t L e o rm ng ­ 2 deposits 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 2(6 1 180 1961............... 17,364 5,081 7307 68,834 4,167 7,152 57.515 1962.............................. 4,111 3394 3,479 2,005 1,474 1,213 1962............... 20.754 5,979 8,524 78,770 4,476 7,010 67 384 1963........................... 5'601 4396 4384 2,863 1,921 1 i 151 1963............... 24,735 7,039 9'920 90,944 4’696 6,960 79,288 1964.............................. 5 365 5,025 5 325 2 846 2 479 1,199 1964............... 24j5O5 6315 10,397 101,333 4,894 6,683 89 356 1965.............................. 5,007 4,335 5,997 3,074 2,923 1,043 1965............... 23847 5,922 10,697 110302 5 J41 6 391 98,670 1966.............................. 3 304 2,866 6,935 5,006 1 929 1,036 1966.............. 16,729 3,604 7,748 114,089 5,266 6,150102,673 1966—Mar....... 214 266 5,687 2 598 3 089 823 1966—Feb., 1,554 307 645 111,246 5,177 6,361 99,708 Apr... 967 138 6,5(6 3 * 343 3* 173 811 Mar.. 1,998 454 814 112,001 5,195 6,331 100,475 May.............. 339 152 6304 3,691 3*012 840 Apr.. 1,888 430 798 112,736 5312 6,311 101,213 June 171 92 6,783 3,865 2’918 972 May. 1,696 390 773 113,249 5 336 6,293 101,720 July............... 838 279 7'342 4,471 2,871 710 June. 1,629 340 823 113,669 5,245 6,279 102,145 Aug.. 146 262 7 326 4'625 2^601 698 July.. 1,234 266 643 113,750 5335 6,254 102,261 Sept 99 150 7'175 4,627 2,548 727 Aug.. 1,314 272 722 113,897 5,246 6,236 102,415 Oct........ 300 226 7349 4339 2310 767 Sept.. 1,119 241 572 114,004 5,253 6,203 102,548 Nov....... 104 269 7,084 4 993 2 091 863 Oct.. 947 208 473 113,998 5,251 6,182 102,565 Dec................ 68 2(7 6335 5 006 1 929 1 036 Nov 866 184 423 113.977 5,257 6,167 102,553 Dec.. 936 189 423 114,089 5,266 6,150 102,673 1967—Jan................. 224 818 6,340 4 814 1,526 1,088 Feb........ 49 589 5,800 4330 1370 1,240 1967—Jan... 788 165 365 114,130 5,274 6,136 102,720 Mar............... 30 655 5,175 4362 913 I,'490 Feb.. 950 205 420 114,298 5 375 6,133 102,890 Mar.p 1,344 307 568 114,683 5,292 6,135 103,256 t Secured or unsecured loans maturing in 1 year or less. 2 Secured Ioans, amortized quarterly, having maturities of more than i Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans, Note.—Federal Home Loan Bank Board data. beginning with 1966, includes real, estate sold on contract not acquired by foreclosures; and beginning with 1967, includes real estate sold on contract acquired by foreclosure. Note.—Federal Home Loan Bank Board data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

832 REAL ESTATE CREDIT MAY 1967 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM I- to 4-FAMILY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-tnsured VA-guaranteed Governmentunderwritten Period Total h N om M ew e o s rtga h g is o E e t m i s x n e ­ g s e P ct r s o j­ * m p P e r e i r o m r n o v t t y p ­ e s ­ ­ 2 Total 3 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 pe nd ri o o d f Total Total s F u i H n re ­ A d - a g n V u te A a e - r ­ d1 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 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 1 3 5 4 6 2 . . . . . . . . . . . . . . . , . . . . . , . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 7 8 7 8 , , , , 6 3 5 1 2 1 8 2 3 4 1 8 9 0 0 6 6 4 1 1 1 1 1 I , ' 7 6 7 6 7 8 0 2 0 8 6 4 8 9 5 9 3 4 4 2 4 3 3 5 * , * 3 9 4 9 9 7 2 6 6 0 8 6 1 6 5 5 2 0 1 * 5 5 8 9 0 8 9 8 9 4 7 2 1 3 5 3 9 6 6 6 8 8 6 8 4 3 6 5 3 0 1 4 5 3 4 4 2 2 2 2 3 1 * ^ ^ * * 6 6 8 6 8 0 0 5 4 5 2 4 0 6 2 2 5 9 1 1 1 1 , * * 0 9 2 3 8 1 2 8 7 7 5 7 3 0 6 2 7 0 I 1 1 1 1 * , ’ 7 8 6 6 2 7 2 7 1 9 7 5 1 4 8 2 0 6 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 5 6 4 2 3 ? . ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 1 2 1 9 8 6 5 3 7 6 2 . . . . , 7 5 4 6 2 6 6 7 7 6 3 9 5 6 2 . . , , . 1 2 9 0 2 4 3 4 3 3 2 8 4 2 5 . . . . . 3 8 3 0 0 3 2 3 3 31 0 0 0 1 . . . . . 1 9 9 9 2 1 1 1 1 1 2 4 1 4 0 6 8 9 4 0 . . . . . 3 3 3 4 6 1964—1............. 185.4 66.6 35.7 31.0 118.8 1966—Mar....................... 753 160 447 68 78 163 59 104 189.8 67.3 36.3 30.9 122.5 Apr....................... 636 139 376 66 54 132 51 81 Ill 193.9 68.4 37.4 31.1 125.4 May...................... 608 137 361 56 55 167 62 104 IV.......... 197.6 69.2 38.3 30.9 128.3 June...................... 685 152 405 69 60 205 71 134 July...................... 604 136 368 42 58 219 72 147 1965—1.............. 200,7 70,1 39.0 31.1 130 6 Aug...................... 622 159 387 18 57 287 96 191 II 205.1 70.7 39.7 31.6 134.4 Sept....................... 610 149 367 27 66 257 96 161 HI?.. .. 209.6 72.0 40.9 31.1 137,5 Oct.,.................... 508 140 275 38 54 271 110 160 IV».... 213.7 73.1 42.0 31.1 140.6 Nov.. . 446 130 238 26 51 247 110 137 Dec........................ 409 113 214 35 46 226 104 121 1966—1?......2..1...6.9 74.1 43.0 31.1 142.8 II?.......... 220,7 74.6 43.7 30.9 146.1 1967—Jan......................... 449 116 263 26 44 214 100 113 in?.. 223.3 75.4 44,4 31.0 147.9 Feb........................ 364 91 210 32 31 169 77 91 IV?. ... 225.4 76.0 44,8 31.2 149.4 Mar...................... 490 96 292 55 47 195 83 112 1 Includes outstanding amount of VA vendee i Monthly figures do not reflect mortgage amendments included in annual totals. accounts held by private investors under repurchase 2 Not ordinarily secured by mortgages. agreement. 3 Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. Note.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans figures are derived. represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans Based on data from Federal Home Loan Bank closed. Figures do not take into account principal repayments on previously insured or Board. Federal Housing Admin., and Veterans Admin, 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 F i H n A ­ - g V u A ar - ­ d u i n s ­ ­ Total in F s H ur A e - 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 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 6 1 2 3 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4 4 5 4 7 ^ ^ , , ' ' 9 6 0 4 7 0 2 5 9 1 3 6 1 3 2 3 0 3 2 3 5 3 3 3 * . , , , 5 4 4 9 4 0 7 0 0 9 9 1 1 6 4 7 0 7 2 2 1 1 1 1 , , , , ' 3 6 6 3 6 4 5 0 3 2 5 1 3 3 7 4 6 6 2 4 8 7 2 9 7 1 2 9 0 1 4 1 3 0 5 0 4 1 *2 4 5 2 1 5 4 9 0 1 1 1 8 0 4 6 3 7 7 3 1 3 5 9 0 9 1 1 1 5 3 5 3 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 5 6 2 3 1 4 ? . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 7 9 8 2 1 4 9 8 3 5 4 0 . . . . 1 2 0 6 0 0 1 1 9 5 6 8 1 0 5 9 9 2 7 6 , . . . . . 1 3 9 2 3 8 6 7 7 7 8 8 . . . . . . 4 5 9 2 0 0 1 7 9 5 6 8 0 4 8 2 2 7 9 . . . . . 9 8 7 3 2 7 2 2 1 1 1 1 3 1 6 8 5 3 . . . . . . 8 3 9 9 2 2 1966— A M M p a a r y r . . . . . . . . . . . . . . . . . . . . 5 5 5 , , , 5 7 9 2 4 2 8 4 2 4 4 4^ , '4 0 2 3 7 6 7 0 8 1 1 1 , , 4 4 4 7 9 51 6 2 2 3 2 5 0 4 9 0 4 7 6 69 5 5 1 0 0 1964—1 Il .. l ................................ 1 1 1 0 0 0 1 5 9 . . . 8 9 7 9 8 8 1 7 4 , . . 2 7 6 7 7 7 . . . 8 6 7 7 8 8 7 0 3. . . 5 0 0 1 1 1 7 8 8 . . , 1 3 5 J J u un ly e .. . .. . .. . ... . .. . ... . .. . ... . . 6 6 , '3 0 1 82 9 4 4 , , 5 7 8 8 1 7 1 1, . 5 5 0 3 1 2 2 1 6 9 5 4 6 51 2 1 5 IV............................ 114.0 95.1 7.9 87.2 18.9 Aug,........ 6,464 4,’916 1,548 180 512 1965—1.................................. 117.0 97,5 7.9 89.6 19.5 S O N e o c p t v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 ' , , 8 7 5 9 3 9 1 1 2 5 5 5 , , ’ 2 0 1 2 7 4 8 2 6 1 1 1 , , ’ 6 5 5 1 6 8 9 5 4 1 1 1 8 6 5 8 8 9 5 6 5 1 7 3 7 6 2 I I IV L II . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2 2 4 0 8 , . . 3 0 8 1 1 1 0 0 0 0 6 3 . . 8 6 6 8 8 8 . . 0 0 0 9 9 9 2 5 8. . . 8 6 6 2 2 2 0 0 1 . . . 7 2 2 Dec.................. 7,063 5,407 1,656 202 705 1966—1?............. 131 3 109 5 8.0 101 5 21 8 1967—J F M a e n a b . r . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 7 , ; , 3 4 2 3 1 1 1 5 6 5 5 5 , ' ’ 6 5 6 9 2 1 2 2 5 1 1 1 , , '7 7 9 2 1 6 3 6 4 1 1 1 8 4 1 1 9 4 ........... 6 6 7.. 4 9 0.. 1 5 6 I i I n I V P ? ? .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 3 4 3 4 0 8 . . . 9 0 6 1 1 11 1 1 7 2 5 . . . 3 4 0 8 8 8 , . . 0 0 0 1 1 1 0 0 0 7 9 4 . , . 0 3 4 2 2 2 2 3 3 . . . 5 3 0 sub N je o c t t e .— to Fe p d a e r r t a ic l ip N a a tio tio n n a p l oo M l o o rt f g a G ge o ve A r s n s m n, e n d t a ta M , o in rt c g l a u g d e in g L i m qu o i r d tg a a t g io e n s De N b o t t O e u .— tst B a a n s d e i d n g o ” n t a d b a le ta ( se fr c o o m nd s p a r m e e c ed so in u g rc e p s a g a e s ), s a h n o d w f n o r f o ta r b “ le M i o m r m tga e g d e i­ Trust, but excluding conventional mortgage Ioans acquired by FNMA ately above. from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Community Facilities Admin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 REAL ESTATE CREDIT 833 TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a a o 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 o e p ri a t n e c io n t r e ) / (th d c o p o P h u l r l u a i a s c s r . r e ­ e s o ) f (t a h d o m L o u o l o la s a u . r n n s o ) t f C c t ( r r e p a a o 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 ( o a p e r a i t e n c i n o t r e ) / (th d c o o p P h u l r l a u i a s c s r r . e e ­ s o ) f (th d a o L o m u o ll o s a a u . r n s n 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 1966.............................. 6.11 .69 24.4 72.8 26.4 19.0 6.24 .59 20.0 65.1 20.4 14.4 1966 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 Dec................. 6.44 .91 23.2 71.4 26.5 18.6 6.52 .70 19.1 69.4 20.0 13.8 Dec.2.. .... 6.49 1.26 23.3 72.3 25.6 18.5 6.55 .81 20.2 70.8 20.8 14.7 Jan.................. 6.47 1.17 23.8 73.3 26.3 19.3 6.54 .78 20.6 71.4 21.3 15.2 196 7„ Feb................. 6.44 1.07 23.6 73,8 24.7 18.0 6.49 .75 20.4 71.7 21.5 15,2 Mar................ 6.42 1.05 23.6 74. 1 25.6 18.7 6.44 .77 21.1 71.8 21.7 15.4 1 Fees and charges—related to principal mortgage amount—include with Federal Deposit Insurance Corporation. Data are weighted averages loan commissions, fees, discounts, and other charges, which provide based on probability sample survey of characteristics of mortgages added income to the lender and are paid by the borrower. They exclude originated by major institutional lender groups (including mortgage any closing costs related solely to transfer of property ownership. companies) for purchase of single-family homes. Data exclude loans for 2 New series currently available only beginning Dec. 1966, not strictly refinancing, reconditioning, or modernization; construction loans to comparable with earlier data. home-builders; and permanent loans that are coupled with construction loans to owner-builders. See also the table on Mortgages; New and Note.—Compiled by Federal Home Loan Bank Board in cooperation Existing Homes, p. 816. DELINQUENCY RATES ON HOME MORTGAGES NONFARM MORTGAGE FORECLOSURES (Per 100 mortgages held or serviced) Rate Number (per cent of Loans not in foreclosure Period (thousands) mortgaged but delinquent for— Loans in structures) End of period fore­ Total 30 days 60 days o 90 r m da o y r s e closure 1 19 9 6 6 2 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 3 6 . . 1 4 . . 4 37 2 1963.................................................... 98.2 .45 1961................................. 3.10 2.27 .50 .33 .29 1964.................................................... 108.6 .48 1962................................. 3.04 2.26 .50 .29 .30 1965.................................................... 116.7 .49 1963................................. 3.30 2.32 60 .38 .34 1966................................................... 117.5 .48 1964................................. 3.21 2.35 .55 31 38 1965................................. 3.29 2.40 .55 .34 .40 1965—I.............................................. 27.9 .48 1966................................. 3.40 2.54 .54 . 32 .36 ..................30.1 .52 . 29.1 .50 1965—J........................... 2.94 2.06 .54 34 37 IV.......................................... 29.6 .50 IL...... 3.00 2.18 ,52 30 38 in....................... 3.20 2.30 56 .34 .38 1966—1............................................ 28.8 .48 IV....................... 3.29 2.40 55 . 34 40 II........................................... 30.8 .51 Ill......................................... 29.3 .48 1966—1........................... 3.02 2.13 55 .34 38 IV.......................................... 28.6 .46 II......................... 2.95 2.16 49 .30 38 Ill....................... 3.09 2.25 .52 .32 .36 IV....................... 3.40 2.54 .54 .32 .36 Note.—Federal Home Loan Bank Board estimates of number of nonfarm mortgaged structures at end ol period and of non­ farm properties acquired during period through foreclosure NoTE.—Mortgage Bankers Association of America data from reports on 1- proceedings (excluding voluntary deeds in lieu of foreclosure and to 4-family FHA-insured, VA-guaranteed. and conventional mortgages held defaults on real estate contracts). Data exclude Alaska and by more than 400 respondents, including mortgage bankers (chiefly), commercial Hawaii. banks, savings banks, and savings and loan associations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

834 CONSUMER CREDIT MAY 1967 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Auto­ co O ns th u e m r er an R d e m pa o ir d ­ Personal Single­ Charge Service Total m pa o p b e il r e g p o a o p d e s r er l n o i a z n a s ti o 1 n loans Total pa lo ym an e s nt accounts credit 1939..................................................... 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941..................................................... 9’172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945.................................................... 5^665 2,462 ’455 ’816 182 I 309 3,203 746 1 312 845 1960..................................................... 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961..................................................... 57^678 43,527 17,’223 11,857 3’191 11’256 14;151 5; 136 5 324 3'691 1962..................................................... 63,164 48,034 19’540 12305 3'246 12343 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 1966..................................................... 94,786 74^656 30,961 19,834 3’751 20,110 20,’130 7344 7J44 5,142 1966--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 5335 May.................................... 89,092 70,209 29’908 17332 3342 18,927 18,’883 7,'925 5,860 5,098 June...................................... 90’070 71'194 30,402 17’959 3 377 19'156 18376 7,901 5'908 5,067 July..................................... 90’650 71’862 30,680 18 J65 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 18310 7314 5’993 5,003 Oct................. 91,899 73^73 30'852 18,714 3’770 19,737 18,826 7,768 6' 107 4'951 Nov........................... 92,498 73 391 30337 18345 3 372 19337 19'007 7307 6,199 5,001 Dec........................................ 94'786 74,656 30,961 19,834 3,751 20,110 20,130 7,844 7'144 5,142 1967--Jan....................................... 93,479 74,015 30,689 19,649 3,703 19,974 19,464 7,779 6,472 5,213 Feb....................................... 92'517 73’598 30,530 19,426 3 366 19,976 18'919 7,754 5 324 5341 Mar....................................... 92^519 73,591 30327 19,369 3 348 20,047 18,928 7,769 5,'8O9 5(’35O 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 fin S c a a o l n s e c . s e u C n r i e o d n i s t fi s n C u a o m n n c e ­ e r 1 Other 1 Total D st m e o p r e e a n s t r t­ 2 F s t t u u o r r r e e n s i­ A s a t p o n r p c e e l s i ­ d m e A a o u l b e to r il s e ­ 3 Other 1939...................................... 4,503 3 065 1 079 1 197 132 657 1,438 354 439 183 123 339 1941.......................... 6'085 4,480 1 ,726 1,797 198 759 1,605 320 496 206 188 395 1945 ....................................... 2’462 1,776 745 300 102 629 686 131 240 17 28 270 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 37335 17,008 11’273 4330 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 1 073 294 345 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 1'677 1965 ...................................... 68'565 60’273 29’173 16,138 7,512 5’606 1,844 8’292 4’488 1,235 302 447 1,820 1966....................................... 74356 65’565 32,’155 16,936 8349 6,014 1,911 9,091 n a. n.a n.a. 490 n.a. 1966—Mar......................... 68,827 60,863 29 384 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 30 307 16,263 7,839 5’695 1,874 8'031 n a. n.a. n.a. 472 n a June........................ 71'194 63,097 31,013 16,454 8,009 5,742 1,879 8’097 n a n a. 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*640 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 64313 31,778 16,759 8,324 5,858 1,894 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 489 Nov........................ 73'491 65,046 31,978 16,790 8,480 5,881 1,917 8,445 n.a. n.a. 490 Dec.......................... 74 356 65,565 32,155 16,936 8,549 6,014 1,911 9^091 n.a. n.a. n.a. 490 n.a. 1967—Jan........................... 74,015 65,162 32,033 16,814 8,443 5,969 1,903 8,853 n.a. n.a. n.a. 488 n.a. Feb....................... 73,598 64'966 31 367 16 696 8 429 5 965 1 '909 8,'632 n a 485 Mar......................... 73,'59l 65,006 32,068 16393 8,485 5,951 1,909 8,585 n.a. n.a. n.a. 486 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

MAY 1967 CONSUMER CREDIT 835 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Total ch P A a u u s r e t ­ p o d a m p o e D r b i i r l e e c t s O g p c u o a o t m o h p n d e e e ­ s r r r e R m l r o a t e n i a o o n p iz n d d n a a s ­ ir ­ s lo P 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 O g p c u o a t o m o h p n d e e e ­ s r r r m R iz lo o a e a a n d p ti n d e o a s r n ir n ­ s lo P o a e n n r a ­ s l 1939.......................................... 1,197 878 1 IS 148 56 1939................................ 1,079 237 178 166 135 363 1941........................... lj797 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 I960................................ 16,672 5,316 2,820 2,759 2 200 3,577 1961.......................................... 11,273 6,811 3,100 161 1 201 1961................................ 17’008 5,391 2,860 2,761 2 J98 3,798 1962.......................................... 12J94 7,449 3,123 170 1,452 1962................................ 19,005 6,184 3'451 2'824 2361 4,285 1963......................................... 13,523 8,228 3,383 158 1,754 1963................................ 22,023 7,381 4,102 3313 2,377 4,950 1964............................... 14,762 8,701 3 889 142 2 030 1964................................ 25394 8,691 4,734 3,670 2,457 5 342 1965 16’138 9341 4329 123 2*345 1965................................ 29’173 10,310 532! 4,266 2,543 6,333 1966 16,936 9391 4 829 110 2 606 1966........................ 32,'155 11 '370 6'165 5 ,’101 2,567 6,952 1966— Mar............ 16,106 9,214 4,422 116 2,354 1966—Mar.................. 29,684 10,533 5,885 4,351 2,476 6,439 Apr.. ....................... 16,191 9,261 4,448 114 2,'368 Apr................... 30,'127 10’699 5367 4'423 2'481 6,557 May.......................... 16363 9 289 4 479 113 2 382 May. 301507 10,852 6,037 4'491 2,502 6,625 June........... 16,454 9,395 4*538 111 2 410 lune................. 31,013 11'075 6 J 24 4,581 2’529 6304 July........................... 16385 9357 4,579 112 2,437 July.................. 31 398 11’219 6,157 4313 2,555 6,754 Aug................. 16,732 9’498 4332 112 2’490 Aug........ 31,737 11’339 6’, 172 4395 2'580 6351 Sept.......................... 16,759 9,427 4,693 112 2327 Sept........ 31,778 11'313 6’113 4'864 2’593 6,895 Oct.......................... 16,771 9398 4,726 1(2 2'535 Oct............ 31,878 11353 6,132 4,910 2’593 6390 Nov........................... 16,790 9.395 4’736 110 2 549 Nov.................. 31^978 11’378 6,157 4'967 2383 6,893 Dec............ 16,936 9,391 4 829 110 2,606 Dec................... 32,155 11,370 6,165 5,101 2'567 6,952 1967-—Jan............................. 16,814 9385 4 817 109 2,603 1967—Jan................... 32,033 11,267 6,148 5,176 2332 6,910 Feb............................ 16396 9315 4,773 107 2’601 Feb........ 31367 11 314 6^ 121 5318 2'502 6,912 Mar......................... 16'593 9339 4344 105 2305 Mar............. 32,068 11334 6J53 5 342 2386 6,953 See Note to first table on previous page. See Note to first table on previous page. INSTALMENT CREDIT HELD BY OTHER FINANCIAL INSTITUTIONS NONINSTALMENT CREDIT (In millions of dollars) (In millions of dollars) Other Repair Single­ Auto­ con­ and Per­ payment Charge accounts End of period Total mobile sumer modern­ sonal loans paper goods ization loans 1 1 9 9 4 3 1 9. 1945....................................... 7 9 7.3 8 5 1 9 7 1 5 2 8 4 1 2 pape 2 2 3 r 0 6 4 loan 1 s 1 1 4 5 4 6 7 64 6 8 3 9 5 End of period Total C b m c a o i e n a m k r l ­ s ­ t O f u i i n n c t t i s i h a o a t e n n i l ­ r ­ s s m p t D o a e r e r e n t ­ ­ s t 1 o O r u e t t t h l a e e i t l r s C ca r r e d d s i 2 t S c e r r e v d ic it e 1960. 9,074 1,665 771 800 5 837 1961. 9,654 1 819 743 832 6357 1939.................. 2,719 625 162 236 1,178 518 1962. 10,583 2,111 751 815 6,906 1941.................. 3 387 693 152 275 1,370 597 1945.................. 3,203 674 72 290 1,322 845 1963. 11,859 2,394 835 870 7,760 1964. 13’285 2,699 997 933 8,656 I960.................. 13,196 3,884 623 941 3,952 436 3,360 1965 14362 3,124 1,153 1,009 9,676 1961.................. 14,151 4,413 723 948 3,907 469 3,691 1966 16'474 3’545 1’303 1 374 10,552 1962................. 15i130 4,690 766 927 4352 505 3,990 1966-—Mar........................... 15,073 3,157 1,172 1,005 9,739 1963.................. (6,303 5,205 912 895 4,456 520 4,315 Apr............................ 15321 3,204 1J88 1,007 9,822 1964.................. 17,894 5,950 1,004 909 4'756 635 4,640 May........................ 15'408 3358 1 303 1,027 9,920 (965.................. 19319 6,587 1'095 968 5,055 723 4,891 June........... 15,630 3 328 1323 1 337 10,042 1966.................. 20,130 6,714 1,130 n.a. n.a. 874 5,(42 July........................... 15,762 3'362 1 341 1,044 10,115 Aug.......................... 15’985 3,420 1,266 1 363 10,236 1966—Mar... 18,232 6,676 1,119 n.a. n.a. 755 5,044 Sept........................... 16376 3 353 1 378 1366 10,279 Apr... 18,641 6,717 1,119 n.a. n.a. 765 5,135 Oct.................. 16,143 3'480 I'286 1 365 10312 May.. 18,883 6,784 1,141 n.a. n.a. 788 5,098 Nov......................... 16378 3317 1,287 1 379 10,395 June.. 18,876 6,767 1,134 n.a. n.a. 824 5,067 Dec.......................... 16,474 3’545 1,303 1 374 10352 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 1967—Jan............................ 16315 3301 1 391 1,062 10,461 Sept... 18,810 6,692 1,122 n.a. n.a. 932 5,003 Feb........................... 16,303 3,'495 L288 1,057 10363 Oct.. . 18,826 6,656 1,112 n.a. n.a. 898 4,951 Mar............ 16,345 3315 1,284 1,057 10,489 Nov... 19,007 6,678 1,129 n.a. n.a. 878 5,001 Dec... 20,130 6,7(4 1,130 n.a. n.a. 874 5,142 Note.—Institutions represented are consumer finance companies, credit 1967—Jan.... 19,464 6,659 1,120 n.a. n.a. 908 5313 unions, industrial loan companies, mutual savings banks, savings and Feb... 18,919 6,634 1,120 n.a. n.a. 895 5,341 loan assns., and other lending institutions holding consumer instalment Mar... (8,928 6,647 1,122 n.a. n.a. 898 5,350 loans. See also Note to first table on previous page. 1 Includes mail-order houses. 2 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

836 CONSUMER CREDIT MAY 1967 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Other consumer Repair and Personal loans goods paper modernization loans Period | N.S.A, S.A. i N.S.A. S.A.i S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1960.................................................... 49,560 17,654 14,470 2,213 15,223 1961..................................................... 48,396 16,007 14,578 2,068 15,744 1962..................................................... 55,126 19,796 15,685 2,051 17,594 1963............................................... 61,295 22,292 17,102 2,198 19,703 1964..................................................... 67,505 24,435 19,473 2,204 21,393 1965..................................................... 75,508 27,914 21,454 2,238 23,902 1966..................................................... 78,896 28,491 23,502 2,136 24,767 1966—Mar....................................... 6,673 6,865 2,479 2,676 1.959 1,890 183 174 2,052 2,125 Apr..................................... 6,505 6,658 2,302 2,486 1,958 1,874 180 178 2,065 2,120 May...................................... 6,472 6,694 2,298 2,526 1,933 1 ,898 186 215 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....................................... 6,699 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 I ,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 Dec........................................ 6,433 7,442 2,297 2,178 1,928 2,720 159 140 2,049 2,404 1967—Jan........................................ 6,501 5,674 2,240 1,923 2,031 1 ,808 157 120 2,073 1,823 Feb..................................... 6,497 5,488 2,177 1,916 2,099 1,655 169 126 2,052 1,791 Mar.................................... 6,510 6,641 2,199 2,350 2,049 1,985 169 159 2,093 2,147 Repayments 1960.................................................... 45,972 16,384 13,574 1 ,883 14,130 1961..................................................... 47,700 16,472 14,246 2,015 14,967 1962..................................................... 50,620 ....................... 17,478 ........1...4...,.9..3...9... ...........1...,.9..9...6... ........1...6...,.2...0..6... 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 1966................................................... 72,805 26,373 21,361 2,060 23,011 1966—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 2,137 1,729 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 2,252 1,767 1,786 176 180 1,972 2,033 July....................................... 6,168 6,002 2,238 2,188 1,803 1,739 174 169 1,953 1,906 Aug............................. 6,087 6,247 2,223 2,305 1,792 1,798 172 181 1,900 1,963 Sept....................................... 6,103 6,000 2,213 2,195 1,784 1,761 168 171 1,938 1,873 Oct................................ 6,142 6,159 2,244 2,310 1,820 1,799 169 172 1 ,909 1,878 Nov....................................... 6,213 6,193 2,255 2,261 1,836 1,813 169 166 1 ,953 1,953 Dec....................................... 6,112 6,277 2,225 2,154 1,796 1,831 161 161 1,930 2,131 1967—Jan......................................... 6,221 6,315 2,202 2, 195 1,882 1,993 167 168 1,970 1,959 Feb........................................ 6,281 5,905 2,217 2,075 1,915 1,878 176 163 1,973 1,789 Mar....................................... 6,246 6,648 2,193 2,353 1,899 2,042 170 177 1,984 2,076 Net change in credit outstanding 2 1960..................................................... 3,588 1,270 896 330 1,093 1961..................................................... 696 —465 332 53 ill 1962..................................................... 4,506 ....................... 2,318 746 55 ...........1..,..3..8...8... 1963..................................................... 6,124 2,892 U252 160 1,820 1964..................................................... 6,384 2,759 1,736 126 1,763 1965..................................................... 8,013 3,647 2,099 142 2,125 1966.......................................... 6,091 2,118 2,141 76 1,756 1966—Mar....................................... 649 548 263 354 251 64 7 -6 128 136 Apr........................................ 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 Dec....................................... 321 1,165 72 24 132 889 -2 -21 119 273 1967—Jan......................................... 280 -641 38 -272 149 -185 -10 -48 103 -136 Feb........................................ 216 -417 -40 -159 184 -223 -7 -37 79 2 Mar....................................... 264 -7 6 -3 150 ~57 -1 -18 109 71 1 Includes adjustments for differences in trading days, sales of instalment paper, and certain other transactions may tactcase 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 and 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

MAY 1967 CONSUMER CREDIT 837 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Sales finance Other financial Total Commercial banks companies institutions Retail outlets Period S.A3 N.S.A. S.A.1 N.S.A. S.AJ N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions I960..................................................... 49,560 18,269 11.456 12,073 7,762 1961..................................................... 48,396 17,711 10,667 12'282 7,736 1962.................................................... 55'126 20374 11,999 13,525 9J 28 1963..................................................... 61,295 23,344 12,664 14,894 10,393 (964..................................................... 67305 25,950 14,020 16,251 11 284 1965..................................................... 75,508 29*738 15’075 18,120 12 575 1966.................................................. 78,896 31,114 14,951 18,986 13 845 1966—Mar....................................... 6,673 6,865 2,619 2,784 1,273 1 ,318 1.573 1,634 1,208 1 129 Apr........................................ 6,505 6,658 2,539 2’717 1,226 1,225 1,559 1,579 1’181 IJ37 May,.............................. 6,472 6,694 2,547 2’722 1’228 1’254 1 347 1 ’600 1,150 1118 June..................................... 6375 7,236 2319 23l2 1,260 1,383 1,643 1,772 1,153 1’169 July............................. 6,732 6370 2373 2,717 1,255 1,265 1 393 1,577 1,211 1,111 Aug....................................... 6389 7,025 2,683 233 1 ,260 1 '336 1389 1'713 1 ,157 1,157 Sept....................................... 6,578 6 J 89 2334 2,322 1,242 1,162 1 387 1,517 1,115 1 088 Oct....................................... 6,522 6,’403 2,583 2320 1,226 1’235 1,582 1 305 1,131 1 ’ 143 Nov.......................... 6^657 6311 2366 2’495 1,256 1,241 1,613 1'631 1,122 1,244 Dec....................................... 6333 7,442 2,553 2,523 1341 1374 1370 1,822 1 369 1 323 1967—-Jan..............*........................ 6,501 5,674 2,588 2,348 1,190 1.033 1,563 1,333 1,160 960 Feb........................................ 6’497 5,488 2337 2331 1,215 1 ,'032 1,577 1,349 1,168 876 Mar....................................... 6310 6,641 2,558 2362 1,199 1’229 1,598 1,649 1; 155 1,101 Repayments I960.................................................... 45,972 16,832 10,442 11,022 7,676 1961..................................................... 47,700 18,294 10,943 11,715 6,749 1962............................................ 50,620 18,468 11,434 12,593 8,125 1963 .................................................. 55,171 20,326 12,211 13,618 9,016 1964..................................................... 61,121 22371 13 J 61 14,825 10,164 1965..................................................... 67,495 25,663 13,699 16343 11,690 1966................................................... 72 ,’805 28,132 14,153 17,474 13,046 1966 Mar....................................... 6,024 6 317 2 299 2 412 1 175 1 284 1,463 1,508 1,087 1,113 Apr........................................ 5,974 5’942 2,293 2,274 1 i 129 1,140 1 342 1,431 1,110 1 ,’097 May............................ 5,979 6’028 2,270 2,’342 1,164 1 182 1 414 1’413 1' 131 1,091 June...................................... 6’126 6 251 2,348 2,406 1,172 1,192 1361 1350 1,105 1,103 July................ 6,168 6’002 2’382 2,332 1,180 1,134 1,476 1345 1,130 1,091 Aug....................................... 6,087 6 247 2,362 2,480 1,179 1,189 1 358 1390 1 388 1,088 Sept....................................... 6,103 6 000 2,396 2,381 1,156 1,135 1 381 1 326 1,070 1,058 Oct....................... 6^ 142 6’159 2,400 2,420 1 193 1 '223 1,472 1.438 1,077 1378 Nov................. 6313 6’ 193 2’,415 2,395 1 258 1,222 1'480 1,496 1,060 1 ’080 Dec........................................ 6,112 6,277 2,318 2,346 1,198 i,’228 1,467 1,626 1,029 1377 1967—Jan......................................... 6,221 6,315 2,435 2,470 1,190 1,155 1,500 1,492 1,096 1,198 Feb........................................ 6,281 5,905 2', 446 2’297 1'188 1’150 1,510 1 361 1,137 1 '097 Mar....................................... 6,'246 6,648 2,'412 2361 1,187 1,332 1,540 1'607 1307 1,148 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 1,239 1 ,’426 654 1965.................................................... 8,013 4.075 l',376 1.677 885 1966..................................................... 6,091 2,982 798 1,512 799 1966—Mar....................................... 649 548 320 372 98 34 1 10 126 121 16 Apr...................................... 531 716 246 443 97 85 117 148 71 40 May...................................... 493 666 277 380 64 72 133 187 19 27 June...................................... 549 985 271 506 88 191 142 222 48 66 July.............................. 564 668 291 385 75 131 117 132 81 20 Aug................ 602 778 321 339 81 147 131 223 69 69 Sept................ . 475 189 238 41 86 27 106 91 45 30 Oct........................................ 380 244 183 100 33 12 110 67 54 65 Nov.......................... 444 418 251 100 -2 19 133 135 62 164 Dec........................................ 321 1,165 135 177 43 146 103 196 40 646 1967—Jan......................................... 280 -641 153 -122 0 -122 63 -159 64 -238 Feb........................................ 216 -417 91 -66 27 -118 67 -12 31 -221 Mar....................................... 264 -7 146 101 12 -103 58 42 48 -47 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 meats, except in certain months when data forextensions 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

838 INDUSTRIAL PRODUCTION: S.A. MAY 1967 MARKET GROUPINGS (1957-59 = 100) 1957-59 1966 1966 1967 pro- aver- Grouping por- age?* tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.r Feb.' Mar. Total index.......................................... 100.00 156.3 153.7 153.9 155.3 156 5 157.2 158.0 157.7 158.9 1 58.6 159,0 158 1 156 4 156 4 Final products, total................................... 47.35 155.4 152.5 152.9 153. 7 154.9 155.3 156.4 156.3 158.3 158.5 159.2 158.1 156.2 156.5 Consumer goods.................................. 32.3! 147.4 146.2 146.4 146.2 147.1 146.5 147.1 146 5 148,8 148.8 149.1 147,8 145.2 145,8 Equipment, including defense. . . . 15.04 172.6 166.2 166.9 169.8 171.4 174.4 176.4 177.4 178.8 179.6 (81.0 180.2 180.0 179.4 Materials........................................................ 52.65 157.1 154.4 154,5 157.1 158.0 158.8 159.6 159,2 159.9 159.1 158.9 158.0 156.2 155 9 Consumer goods Automotive products................................... 3.21 163.0 170.0 168.4 160. 7 162.3 154.5 146 4 150 7 168 5 162.8 162.6 147.0 135.7 144 6 Autos................................................................ 1.82 169.5 180.5 178.9 166 0 (67 8 151 5 141 7 148 6 177'8 166 7 167,3 141 3 120 5 136 5 Auto parts and allied products........... 1.39 154.4 156.2 154,6 153.6 1 55.2 158.6 152 7 1535 1562 157.8 156.4 154.4 155^7 155 3 Home goods and apparel......................... 10.00 153.0 151.3 153.8 154.0 153.8 152.3 152.8 151.3 153.2 153.2 151.7 151.5 148.1 147.3 Home goods................................................. 4.59 168.9 164.1 168.4 169.9 168.3 168.0 168.9 166.0 170,0 169,1 166.5 165.2 162.6 160,8 Appliances, TV, and radios............. 1 .81 166,6 156.2 166.7 165.9 1 63.9 165.5 165.0 159.3 170.2 165,3 158.4 154.0 153.2 147.9 Appliances........................................... 1 .33 166.7 150.6 167.9 165.5 165.2 171 .1 166 7 160 1 171 7 162 4 151.9 150.2 149.8 144 6 TV and home radios...................... .47 166,3 171.8 163.0 166.9 1 60.3 149.8 160,2 157.' 1 166^0 173.7 176.7 164.8 162.9 157’2 Furniture and rugs................................ 1.26 165.7 165,5 166.3 169.1 170,1 165.2 168.0 165.9 164.4 164.7 163.5 163.4 158.5 157.9 Miscellaneous home goods............... 1.52 174.2 172,5 172.2 175.5 171.9 173.2 174.2 173,9 174,5 177. 1 178,7 179.8 177,0 178.5 Apparel, knit goods, and shoes.......... 5.41 139.6 140.4 141.4 140.5 141.6 139.0 139.1 138 8 139.0 139.8 139.1 139.9 135.8 Consumer staples......................................... 19.10 141.8 139,5 138.9 139.7 141.6 142.1 144.2 143.3 143,2 144.2 145.0 145.4 145.2 145.2 Processed foods 8.43 126.4 125.2 125.1 123.9 1 26.4 126.0 127 9 127 9 126 0 127,3 130.1 130 4 130 0 129.3 Beverages and tobacco............................ 2.43 131.7 133,6 130.2 129.5 1 31.5 130.2 134.0 13U0 133' 1 133.0 133.7 132.9 134.1 Drugs, soap, and toiletries.................... 2.97 174.4 168.6 167.3 173.4 174.7 174.5 175.4 176.1 178.7 181.3 178.5 179.0 180,3 180 5 Newspapers, magazines, and books. 1.47 136.6 134.2 134.1 136,9 138.5 138,9 138.2 136.7 137.9 138.8 139.1 141.5 142,3 143,3 Consumer fuel and lighting.................. 3.67 159.4 154.7 154.6 155,8 157,1 161.1 165.0 162 5 161.9 162.4 162.0 161.8 160.0 Fuel oil and gasoline............................ 1.20 128.6 125.2 128.4 128.7 128.6 128.8 129.1 131 8 134,0 129.8 129.2 125.5 125.2 127.8 Residential utilities............................... 2.46 174.4 169.0 167.4 169.0 171.0 176.8 182,5 177.4 175 5 178.2 178.0 179.5 176.9 Electricity............................................. 1.72 186.8 179.0 176.7 179.0 181.9 190,0 197.9 191.2 188.3 192,2 189.2 (91 .0 186.9 Gas........................................................... .74 145.9 Equipment Business equipment...................................... 11.63 181.2 175.4 175.9 178.3 180.0 182.7 184.4 185.7 187.2 187.5 189.3 187.4 186.5 184.6 Industrial equipment. .............................. 6.85 172.2 167.4 167.3 168.5 171.0 174.9 176.3 177.0 178.4 178.1 179.1 \77 J 176.7 174.6 Commercial equipment........................... 2.42 190.0 184.2 186.4 190.1 191.0 189. 8 194.1 194.8 195.5 196.9 196.0 196.7 199.8 199.0 Freight and passenger equipment. .. 1.76 208.5 198.9 201.3 204.9 205.7 208.8 208.1 209.2 212.7 216.9 220,3 214.5 215.0 211.2 Farm equipment.......................................... . 61 167.0 163 0 157.6 164.7 168.2 (67.5 169.1 178.9 180.3 170 7 179.5 176.1 161.7 Defense equipment...................................... 3.41 Materials Durable goods materials................... 26.73 157.4 155.6 156. 7 157.7 159.3 159.1 160 1 159 8 159.8 158 5 156.4 153.9 152.0 152.4 Consumer durable..................................... 3.43 170.3 169.1 169.0 166.0 165.2 162 8 173.6 174 0 176.2 173,8 165.4 154.6 148,4 145.4 Equipment...................................................... 7.84 180.7 171 9 173.6 177 1 179 1 183 7 187 9 189 1 189 7 191 0 190.3 190 6 186 5 185 8 Construction................................................ 9.17 141.6 146 J 144.3 141.8 142.3 141'0 140.2 139.8 138,5 138*5 138,2 138.9 139.4 140'4 Metal materials n.e.c................................. 6.29 144.4 147.1 145.1 144.8 148.0 146.9 145.3 142.7 145.2 139.6 139.5 139.6 140.1 137.9 Nondurable materials............ 25.92 156.9 153.1 152.3 156.5 158.0 158 6 159.1 158 6 159.9 159.9 161.4 161.7 160.5 159.5 Business supplies......................................... 9. 11 148,9 146 0 145 3 147 8 150.3 149 9 150 1 150 7 151.6 150 9 153 0 153 4 152 2 151 0 Containers................................................ 3.03 145.4 1452 142.4 146.1 146.4 143,2 143^4 147'4 145.3 147.2 151 J 146.5 147.5 145.3 Genera! business supplies........ 6.07 150.7 146 4 146.7 148.6 152.2 153.2 153 4 152 4 154.8 152,8 154,0 156.8 154.6 153.9 Nondurable materials n.e.c................... 7.40 192.8 186.3 188.4 192.6 192,9 194.5 195,6 193.8 197.1 198,7 198,1 199.3 197.3 195.0 Business fuel and power......................... 9.41 136.3 1 33.9 130.8 136.9 138.0 138.7 138.9 138.6 138.7 138.0 139.7 140. 1 139.7 139.9 Mineral fuels............................................ 6.07 122,2 120.5 114.9 123.8 124.9 124,6 124 9 123,7 124.9 123.1 125.1 124 7 124 5 124.6 Nonresidential utilities....................... 2.86 173.5 168.6 1 70.6 1 71.2 172.2 174.6 175.9 176.7 174.8 175,7 177.5 179.7 179.3 Electricity.............................................. 2.32 174 5 170.3 172.2 172.8 173 8 176 7 178 2 179.1 176,7 177 8 179 0 181.8 181 3 General industrial....................... 1.03 171.6 165,6 168.2 170.0 170.1 174.6 176 3 177.0 177.6 176.7 177 1 178.8 177.4 Commercial and other.............. 1.21 184.3 181,0 182.6 182.0 184.1 186.2 187,5 188.5 183.6 186.4 188.4 192.4 192.8 Gas.......................................................... .54 164.4 Supplementary groups of consumer goods Automotive and home goods....... 7.80 166.5 166.6 168.4 166.1 165, 8 162.5 159.6 159.7 169,4 166,5 164.9 157.7 151.5 154.1 Apparel and staples.. .7......................... 24.51 141.4 139.7 139.4 139.8 141.6 141.4 143.0 142.3 142.2 143,3 143.7 144.2 143.2 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INDUSTRIAL PRODUCTION: S.A. 839 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1966 1966 1967 Grouping p p r o o r ­ ­ aver­ tion age’* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar. Total index................................................ 100 00 156 3 153.7 153 9 155.3 156.5 157,2 158.0 157.7 158.9 158.6 159.0 158.1 156.4 156 4 Manufacturing, total.................................. 86.45 158.7 155.9 156.6 157.6 158.9 159.4 160.1 160.0 161.5 161.0 161.3 160.1 158.3 158.3 Durable....................................................... 48.07 165.1 161.9 162.9 164.2 165.4 166.1 167.1 167.3 169.1 167.3 167.6 165.5 163 0 163.2 Nondurable.............................................. 38.38 150.7 148,5 148.7 149,4 150.7 151.3 151.3 150.9 151.9 153.1 153.5 153.3 152.4 152.1 Mining........................................................... 8.23 120.3 120,0 115.6 120.7 122.0 122.0 122.1 (21.0 121.6 121.0 123.0 123,0 123,1 122.5 Utilities............................................................. 5.32 173.4 168.8 169.1 170.2 171,7 175.7 179.0 177.0 175.2 176,9 177.7 179.6 178.2 179.5 Durable manufactures Primary and fabricated metals...... 12.32 151.5 150.5 150.7 153. 7 154.0 154.5 154.2 153.6 153.4 149.9 150.4 147.0 146 3 145 3 Primary metals................................ 6 95 142 7 141 8 142 4 146.5 148.0 148 6 148.7 146.4 145 0 138 4 136 2 131.9 131 6 131 I Iron and steel................................. 5.45 136 2 136 7 138 8 141 I 142 1 143 3 142.2 139 0 137.5 132.4 130 1 124.9 124 6 124 3 Nonferrous metals and products.. 1.50 166.5 174.5 166^0 165^0 166.2 162'. 4 162. 1 164.7 168.2 161.7 163.5 163.2 166:7 168.6 Fabricated metal products.................... 5.37 162 8 161 7 161 4 162 9 161.8 162.1 161 4 163 0 164.2 (64.7 168 7 166 6 165 3 163 6 Structural metal parts................. 2 86 158 8 158 9 159' 1 158 4 158 8 157 7 158 8 158 6 159 0 160 2 161 4 160 7 160*9 160*1 Machinery and related products..... 27.98 176.5 170.8 172.4 173.7 175.5 177.4 179.0 179.8 1S3.4 181,9 182.0 179.6 176,0 176.7 Machinery.................................................... 14 80 183 8 176 1 178 6 180 6 182 8 186.6 189 6 188 8 191.1 189 0 189 5 189 2 186 3 183 7 Nonelectrical machinery................... 8X3 181.9 1740 174 5 177.7 180.3 184.7 186 7 188.6 189.9 188.2 190.4 190.7 is?: 1 184 8 Electrical machinery............................ 6 37 186.5 178 9 184.1 184.4 186.0 189.1 193.4 189.2 192.6 190.1 188 3 187.2 185 1 182 3 Transportation equipment................... 10 J 9 168,3 166 1 165 9 165 8 167.1 166 0 166 0 168 3 174.6 172.9 171 5 164 6 159*4 164 3 Motor vehicles and parts.................. 4.68 171.3 (76*9 176J 169.9 169.4 16L 2 158J 164.6 175.7 170.7 169.0 1515 140X1 148:6 Aircraft and other equipment. . ., 5.26 165.2 155.8 156.4 161.9 164.7 169.6 172.5 171.1 173.7 174.6 173.7 176.0 175.6 178.4 Instruments and related products. .. 1 .71 176.5 171.9 174.6 176.4 176.5 177.0 177.4 179.5 181.8 181.4 184.6 186.2 183.4 185.9 Ordnance and accessories...................... 1.28 Clay, glass, and lumber............ 4 72 132.9 138 0 137 8 133 3 134,4 131. 7 129 8 129.8 128.1 126 6 128 1 129 3 129 6 130 0 Clay,' glass, and stone products.......... 2.99 140.7 I43*.O 141*9 139’5 141,0 138.5 140^5 141.2 137.8 136.5 136.9 137^2 136.9 136:1 Lumber and products............................. 1 73 1 <9 3 129 3 130 7 122 7 122 9 119.9 ill 3 110 0 111 3 109 5 112 8 115 7 1(6 9 119 4 Furniture and miscellaneous................... 3.05 165.0 162 9 163 5 166. 7 167.0 163.5 167 I 165 9 165.3 166.3 167.5 166.3 163.9 162. 3 Furniture and fixtures............. 1 54 171 9 168 8 169*6 173 8 174.6 169 7 175 3 173 2 173 2 173.9 174 0 172 1 170 6 166 6 Miscellaneous manufactures................. 151 157'.9 156^8 157’2 159,5 159,3 1572 158 7 158.’4 157.2 158,5 160^9 160^3 I57J 157.'9 Nondurable manufactures Textiles, apparel, and leather................ 7.60 141.6 141.1 142.6 142.0 143.4 141.6 140 I 140 2 140.9 140.8 141.3 J 39 R 136 4 n’t 6 Textile mill products...................... 2 90 142.3 142 0 143 5 143.7 144.0 143.4 142, 1 141 *7 142.4 141.8 (41.4 139 3 136 7 136*.O Apparel products,.............................. 3 59 150.3 149*4 150 3 149 9 152 0 149 7 147 7 148 4 148.1 149.3 150,5 150*2 1 46 4 Leather and products............................... I' 11 111.9 112*2 1155 112.1 1142 111.1 1104 109,9 113.9 110.8 1H J 107 7 1036 Paper and printing.................... 8 17 146 3 144 2 141 S 146 6 148 3 149 6 148 6 147 2 147 9 148 5 147 4 149 0 148 7 148 6 Paper and products.................................. 3*43 152 1 I 50*2 150 2 153 0 154’ 1 156 2 1 S3 I 1512 153 3 153'7 152 6 154 0 152 4 150 5 Printing and publishing........................... 4 74 142'2 139 8 138 6 142*1 144 1 144*8 145*3 144 3 144 1 144 7 143 7 Newspapers......................................1..*.53 114 2 133 1 128 5 133 8 13 5*4 1 36* 3 1 17 7 139*1 135*7 135 2 133 2 134* 8 130 9 Chemicals, petroleum, and rubber.... 11.54 181.7 176.6 177.3 179.3 180.1 182,0 182.4 182.8 186.1 187.8 187.3 186.7 186.8 186.8 Chemicals and products........................ 7.58 193.0 187.8 187.7 191.4 192,7 194.5 194,4 193.5 196.9 199.4 198.7 198.6 200.0 200.5 Industrial chemicals...................... 3 84 220 1 213 7 215 4 218 2 219 9 222 0 222 2 220 5 224.1 227.5 228 8 228 5 229 8 Petroleum products.................... 1 97 128 4 125 6 127 7 127 4 127*7 126 9 128 5 130 6 131 2 129 I 129 0 128 7 126 7 128.9 Rubber and plastics products.............. 1 99 191.9 1845 186 9 184 J 184.1 188^7 190 3 193*6 199^2 202.0 20L6 198^8 196*3 Foods, beverages, and tobacco............. 11 07 127.7 127 4 126 9 125 5 126 8 127 2 128 5 127 9 126.7 128.8 13/ 0 130.9 130 5 130 I Foods and beverages,............................ 1025 128 4 127'5 127*8 126 1 127 i 128 1 129*2 128 5 127 5 129.7 132 0 131 9 131 3 J3O8 Food manufactures............................. 8 64 126 6 125 7 1260 124 4 125 5 126 4 127 0 127 0 124 9 127.6 130 3 1 30*4 129 5 129:5 Beverages.......................................... 1 61 137 8 137 0 137*5 135 4 1359 137*2 141 1 136 4 141 *4 141.1 141 0 140*2 1411 Tobacco products......................... 82 119^8 126^8 115^8 117^9 122^7 116*5 H^Q 120^5 116*9 117.2 119*3 118.'5 120:2 Mining Coal, oil, and gas......................................... 6 80 117 6 116 7 1116 118 8 119 5 119 5 119 7 118 8 119.8 118.4 120 I 119 6 119 8 118 9 Coal............................................................ 1*16 115 2 1177 85* 3 116*9 120*7 120*8 120* 7 1147 121 5 114 0 125 7 120 7 115*7 115 1 Crude oil and natural gas.................... 5 64 118 0 116 5 117 0 119 1 119 3 119 2 110 6 110*6 119 5 1193 119*0 119 3 120 6 119 6 Oil and gas extraction...................... 4 01 123 8 1212 121*9 125 5 125 9 125 5 125 9 125 8 125*6 125 2 125 1 125 7 126*6 126 8 Crude oil............................................... 4 25 119 4 1170 1172 121 3 121 4 120 9 1212 1213 121 1 120 8 120 8 121 0 1214 1218 Gas and gas Liquids......................... 66 1517 148'1 152,2 152^2 154^ 4 155' I 155^5 154^4 154*6 153.3 152^3 155 7 Oil and gas drilling.............................. 73 79 2 84 4 83 6 76 2 74 6 76 4 77 0 77 9 77 9 79.2 78 1 76 3 R0 5 71 0 Metal, stone, and earth minerals......... 1.43 133.2 136.0 134.6 130.1 133.7 133.8 133.1 131.4 129.9 133.2 137. i 139.4 138.9 140.1 Metal mining................................................ 61 132 7 1 34 5 1 39 7 133 6 1 34 2 134 0 132 1 129 4 133 0 134 2 Stone and earth minerals. ......... .82 133^5 137/1 130^9 127*5 133 3 133^7 133 8 133 5 BOX 133 4 139 3 138.7 136.6 137:1 Utilities Electric............................................................. 4 04 179 7 174 0 174 1 175 5 177 2 182 4 186 5 184 2 181 7 183.9 183 4 185.7 183.7 Gas...................................................................... U28 156 1 153.4 1*54^4 155.0 155^7 156*9 157.6 158*5 159.1 159.5 160*0 Note.—Published groupings include some series and subtotals not Industrial Production 1957~59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

840 INDUSTRIAL PRODUCTION: N.S.A MAY 1967 MARKET GROUPINGS (1957-59 = 100) 1957-59 1966 1966 1967 pro­ aver­ Grouping por­ age » tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. r FebT Mar. Total index.................. 100.00 156.3 154.6 154.8 156.0 159.3 150.9 156.8 161.3 163.8 160.2 157 1 156.6 156,7 151 4 Final products* total. ................................ 47.35 155. 4 153.4 152.6 152.9 157.8 150 0 154.7 161.2 164 7 160.0 157.2 156 8 156 5 157 I Consumer goods............. 32.31 147.4 146,7 145.5 144.8 150,0 139.8 146.0 153.6 157 8 151,3 145 5 145^7 1455 146.2 Equipment, including defense. ... 15.04 172.6 167.8 167.9 170.3 174,6 172.0 173.5 177.8 179.4 178.7 182.4 180.6 180. 1 180.7 Materials......................................................... 52.65 157.1 155.7 156."J 158.' 160.7 151.8 158,7 161 3 163.1 160.4 157.0 156,4 157 0 157 7 Consumer goods A Utonioii ve products................................... 3.21 163.0 180.9 178.6 170 9 174 2 127 5 86 2 153.6 185 4 177 4 165 5 154 6 142 2 Hl 8 Autos............................................................... 1.82 169. 5 202.2 196,8 184*3 190 4 112.1 32 6 150,1 202*7 1934 115.1 155 4 1326 1515 Auto parts and allied products........... 1.39 154.4 153,0 154 8 153.3 152 8 147 7 156.9 158 3 162 5 156 3 152 1 153 7 154 8 1522 Home goods oriel apparel......................... 10.00 153.0 156.0 155 3 153 3 156 4 138 9 152 8 156 2 165 2 156 6 146 5 146 8 153 3 152 1 Home goods.................................................. 4.59 168.9 167.0 169.2 169^2 170 5 152^8 164*1 174^4 184 6 176 5 170 9 162 3 166^0 164 2 Appliances, TV, and radios............. 1.81 166.6 166.4 174.2 169.4 171.7 140 8 149 3 170.9 191.6 173.' 1 163.1 153 1 166 9 159 5 Appliances.............................. 1.33 166 7 165.2 179 9 174 5 177 2 150 5 145 8 168 1 190 1 163 0 155 2 153 4 165 2 160 8 TV and home radios............... .47 166.3 169.9 158.3 154*7 156 3 113 4 159 1 178^9 195 9 201'5 185^5 152 3 171 *4 155 5 Furniture and rugs................ 1.26 165 7 163 5 161.6 162 7 167.2 157.3 171.0 170 5 173 0 170 8 169,6 159 8 156 6 156 0 Miscellaneous home goods............... 1.52 174.2 170.6 169.6 174 4 171 9 163 3 175 9 181.7 186 0 185,2 181 4 175* 3 172 6 176^5 Apparel, knit goods, and shoes.......... 5.41 139.6 146.7 143 5 139 8 144. 4 127 2 143^3 140,9 148*7 139.8 125.9 133.6 142,6 Consumer staples....................... 19.10 141.3 136.1 134.8 136,0 142 5 142.3 152 4 152.1 149.3 144 2 141.6 143 7 142 0 142 J Processed foods................................... 8 43 126.4 116 8 117 1 117.7 123 9 125 4 138 2 144 5 I 39 9 132 8 126 6 123 9 i2t 5 120^6 Beverages and tobacco............................ 2.43 1 31.7 130 7 131.6 139 0 150 2 136 4 145 0 134.4 137 I 126 3 115.4 117 0 1227 Drugs, soap, and toiletries................... 2.97 174.4 166.7 167 3 171 8 180 8 167 5 181 2 179.6 185 0 183 1 177,6 180 8 180 3 180,5 Newspapers, magazines, and books. 1.47 136.6 136.2 134.6 1363 137.9 137.5 139*9 137.9 137^8 137^0 138.8 140^2 141*7 145.4 Consumer fuel and lighting........ 3.67 159 4 158.6 150 2 146 4 150 7 166.3 171 8 164 8 154 1 153 0 165 5 177 2 170,3 Fuel oil and gasoline........................... 1.20 128.6 123.9 121.7 124.4 127'1 131.1 1329 131.9 130^6 129.0 132.2 130.8 128,4 126 4 Residential utilities.............. 2.46 174.4 Electricity....................... • 1.72 186.8 188.3 171.9 162.0 169.2 199.5 209.8 196.2 174.0 172.8 194.5 220.2 206.7 Gas......................................................... .74 145.9 Equipment Business equipmeat..................................... 11.63 181.2 177,7 177.6 179 3 184 3 180 3 181 2 186 1 187.5 185.3 189.8 187.3 186.6 186.4 Industrial equipment............................... 6 85 172.2 167.6 167 3 168 7 174 6 173.2 175*8 178 6 177 3 175 6 180 2 111 1 175 8 174 R Commercial equipment.......................... 2.42 190.0 182,5 182.9 187 8 191 6 187.1 194 1 197.7 198 8 200 8 200,3 196*9 198 4 19?' 2 Freight and passenger equipment, .. 1.76 208.5 207,9 209.4 211.0 213.9 208.8 199.8 206.1 218.0 212.6 218,1 214,5 215.0 217^5 Farm equipment......................................... .61 167.0 185.1 179.9 173.6 179 3 149.8 136.4 167.3 169.1 154.3 174 9 179,3 179 5 Defense equipment..................................... 3.41 Materials Durable goods materials......................... 26.73 157.4 155.9 158.3 160.0 162.4 152.1 158 4 162.7 163 5 159 6 155.4 153 0 152.2 153.3 Consumer durable..................................... 3.43 170. 3 174.2 174 1 171 0 166 9 141 6 158 0 174 0 178 8 179 0 173.7 160 0 150 6 149 8 Equipment...................................................... 7.84 180 7 173 8 175 5 178 3 180*9 178*0 182*3 1872 189* 1 191 2 193 2 192 3 188* 2 1R7* 8 Construction................................................... 9.17 141.6 137.3 142.9 145 3 151*5 146 6 1500 148 2 146 I 138*2 131 3 128 5 129*6 133 4 Metal materials n.e.c.. ........................... 6.29 144 4 150.6 150 9 152*8 152*7 133*7 141 1 147 0 148 7 140 7 133.4 136 0 141*4 1412 Nondurable materials.............. 25 92 156 9 155 6 155 0 J 57 4 1S9 / 151 4 119 0 119 9 162 6 161 2 158 6 159 8 161 8 162 3 Business supplies........................................ 9A 1 148.9 148.7 149*4 150*3 1518 141 *4 149 8 153 9 157*7 153 1 147’9 148*0 1516 153 8 Containers,............. ................................ 3.03 145,4 145 9 147 5 147 6 1 so o 142 5 1520 152*4 152 7 143 1 134*0 139 2 145*7 146*0 General business supplies........ 6.07 150.7 150.1 150 4 151*6 152*2 140 9 148*8 154*7 160*2 158* 1 154 8 152 4 154 6 157*7 Nondurable materials n.e.c............ 7.40 192,8 191.0 194 1 194 9 195 8 183 4 192 7 192*8 198 1 200 7 195.1 198 3 201'2 199 9 Business fuel and power................. 9.41 136,3 134 4 129 7 134 8 137 2 135 8 141 4 139.9 139,5 137.9 140.1 141.0 140.7 140,9 Mineral fuels............................................ 6.07 122.2 123.2 116.3 122.*6 122*7 116^6 123*4 122,3 125.7 124.6 126.9 126.9 128.3 127,4 Non residential utilities............... 2.86 173.5 Electricity.............................................. 2.32 174 5 164.8 164 i 167 8 176 8 187 0 (91 9 188 3 177 8 173 5 175 2 178 9 174 3 General industrial....................... 1.03 171.6 164.8 166 0 170 0 173 5 1737 179*8 179'7 178 0 176*7 175*3 1779 172 8 Commercial and other.............. 1.21 184.3 171,2 168.9 172.4 186.9 206*7 210*9 204^0 185^4 178.2 182.7 187.6 183.2 Gas.......................................................... .54 164.4 Supplementary groups of consumer goods Automotive and home goods.............. 7.80 166.5 172.7 173.1 169 9 172 0 142 4 132 0 165 8 184 9 176.9 168.7 159 1 156.2 159.1 Apparel and staples................................... 24.51 141.4 138.5 136.7 136^9 142.9 139.0 150.4 149.6 149.2 143.2 138.1 141.5 142.2 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INDUSTRIAL PRODUCTION: N.S.A. 841 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1966 1966 1967 Grouping pro­ aver­ por­ tion age^ Mar. Apr, May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.' Mar. Total index,................................... 100.00 156. 3 154,6 154 8 156.0 159.3 150.9 156 8 161.3 163 8 160 2 157 1 156 6 156.7 157 4 Manufacturing, total........................... 86.45 158.7 157.1 157.9 158.9 162.2 152.1 158.0 163.6 167.1 163.3 159.2 158.0 158,5 159.4 Durable....................................................... 48 07 165.1 163.9 164 9 166.1 169.0 158.2 160 4 169 5 173 2 170 2 168,3 164 7 163 5 165 0 Nondurable............................................... 38.38 I 50.7 148.6 149 2 149,8 153.8 144.4 155 0 156 3 159 6 154 8 147.7 149 7 152,2 152.4 Mining............................................................. 8.23 120.3 118 7 115,5 121.3 122.7 118.2 123.6 122.8 124.'3 121 5 122 1 121.3 122.4 121.3 Utilities.................................................... 5.32 173.4 Durable manufactures Primary arid fabricated metals............. 12.32 151.5 153. 7 154.2 155.5 156.3 143.8 151.2 156.1 156.3 151.8 147. 7 146 8 148.1 148.1 Primary metals............................................. 6.95 142.7 150, 6 150 5 150.3 149.5 131,5 139.5 144.8 146 4 139 8 132.1 134 5 1 39.1 139.2 Iron and steel.......................................... 5.45 136.2 143 5 144 3 143.9 142.1 127.5 133.7 139 0 139 6 133 7 126 8 127 4 130.8 130 5 Nonferrous metals and products.. 1.50 166.5 176.4 172,3 173.7 176.5 146.2 160.5 165.9 171.4 161.7 151 . 1 160.4 169.2 170.5 Fabricated metal products.................... 5.37 162.8 157.8 159.0 162.1 165.0 159.7 166.2 170.8 169.1 167.3 167,9 162.6 159.8 159.7 Structural metal parts......................... 2 86 158.8 152.7 154 3 157.6 162 0 157.7 162 8 164.9 163 8 162 6 163.0 157 5 154.5 153,9 Machinery and related products.......... 27.98 176.5 174.3 175.0 175.9 179.1 168.1 166.4 180.2 186.7 185.2 185.7 181.0 178.1 179.8 Machinery....................................................... 14 80 I 83 J 179 2 180 8 182.2 186 5 178 1 183 2 190 0 193 0 189 8 192,2 189 1 188,3 187 0 Nonelectrical machinery.................... 8.43 181 .9 178,9 179'7 182.1 184.6 180.1 179* 8 186.1 186.5 185.2 191.7 190’7 189.7 190.0 Electrical machinery............................ 6.37 186.5 179.6 182.4 182.5 189.0 175.6 187 8 195.2 201 5 196 0 192.9 186 8 186.6 183.0 Transportation equipment..................... 10.19 168.3 171 3 170 6 169.7 171.4 153,5 140 5 167 4 180 3 180.0 177.2 168 9 162.3 168.2 Motor vehicles and parts.................. 4.68 171 .3 187.2 185 0 178.5 180.9 138,5 106 3 163.7 187.1 183.6 174 7 159 5 146.6 155 3 Aircraft and other equipment. .. . 5.26 165.2 156.6 157.2 161.3 162.4 165.5 169.4 170.4 174.6 177.2 179.8 177.8 176.0 179.3 Instruments and related products ... 1.71 176.5 171.0 170.2 174.6 178.3 175,2 178.8 181.5 183.8 184.7 186.8 184.0 182.5 185.0 Ordnance and accessories.................... 1,28 Clay, glass, and lumber............................ 4.72 132.9 131 6 136 5 138.0 143.6 137 2 142 0 139 3 136.2 126 9 118 1 116 8 120 5 124 7 Clay, glass, and stone products.... . 2.99 140.7 136^6 14L3 144.5 151.3 147,2 152.0 149 .'2 145,4 138,5 I29'.4 125J 125.3 131.3 Lumber and products............................... 1.73 119.3 122 8 128 1 126.7 1 30.3 119.9 124 7 122.1 120,2 106 8 98 7 101 8 112.2 113 4 Furniture and miscellaneous................ . 3.05 165.0 159.9 159.2 162.9 167.3 159.1 171 9 172.0 174.8 174,2 169.7 161 0 158.7 159.4 Furniture and fixtures............................... 1 54 171.9 1 66.8 165 0 168.6 174.3 167.2 1 80 2 178 4 179 8 178 8 178 4 1 6R 7 166.3 164.6 Miscellaneous manufactures................. 1.51 157.9 152.9 153'3 157.1 160,1 150.9 163^5 165 5 169.8 169.6 160 9 153^ 1 150.8 154.0 Nondurable manufactures Textiles, apparel, and leather............. 7 60 141.6 147.7 146 2 143.8 145. 7 127.2 143 9 141.1 148 5 141.5 130.0 117, 9 143.9 142.3 Textile mill products................................. 2.90 142.3 143 4 1464 148 7 147 6 129 1 145 7 141 7 146 7 142 5 131 5 140 0 140 8 137 4 Apparel products........................................ 3 59 150.3 160 6 1563 149.9 1543 134 0 1507 1499 159 9 1508 137.0 i 45 7 156^7 Leather and products............................... i 1 i 111.9 117 8 113 2 1115 113 1 100 0 1176 1115 116 7 108 6 103 7 107 2 110 8 Paper and printing...................................... 8 17 146.3 145 9 146 5 147.9 148 2 140 2 146 6 149 2 154 9 151 6 144 2 146 1 149.3 150 7 Paper and products................................... 3'43 152 I 1532 1547 153,8 1549 143 7 153 1 153 5 163 3 154 5 140 4 1517 156 2 153 5 Printing and publishing........................... 4^74 142.2 140*7 1405 143.5 143*3 137^7 1419 146 0 148* 8 149*5 146 9 142 0 144'4 148*7 Newspapers............................................... 1 53 134 2 135 1 136 8 142 6 136 1 118 6 126 0 138 4 145 6 148 7 1 36 5 123 0 129 4 134 8 Chemicals, petroleum, and rubber.... 11.54 181.7 178.2 180.7 181.0 186.0 174.7 183.3 185.3 189.7 187.8 184.0 185.7 188.3 188.7 Chemicals and products......................... 7 58 193.0 189 4 192 7 193.7 198 3 187 4 194 9 195 3 198 7 200 4 196 3 197 6 201.4 203 0 Industrial chemicals.............................. 3. 84 220. 1 216.9 220 8 220 4 223 2 214.2 218*9 221'6 224.1 230 9 228 8 227 4 233 2 Petroleum products................................... 1 97 128.4 121 2 122 6 126 1 131 5 133 6 I 35 3 134 1 132 5 127 4 125 9 124 8 124.2 124 4 Rubber and plastics products.............. 1.99 191.9 192' 1 192.7 187.1 193 3 167.0 186 5 198*1 212.1 200 0 194 5 200 8 202.2 Foods, beverages, and tobacco.............. 11.07 127. 7 120.4 120.5 122.8 129.8 127.6 139 2 141.8 139.3 131.7 124.5 122,8 122.2 122.8 Foods and beverages................................. 10 25 128. 4 120 1 120 9 122 8 129 7 129.6 140 0 143 1 140.2 132 7 126 7 J 23 3 122 4 123.2 Food manufactures.............................. 8 64 126.6 117 5 117 4 118 2 124 1 125 1 137 6 143 8 139 9 133 3 1270 124 5 122.1 121,1 Beverages.................................................... 1'61 137 8 1336 139'7 147 6 159 8 153'4 152 8 139*1 142 1 129 8 124 8 116' 9 124 2 Tobacco products...................................... .82 119.8 I2<9 115.6 122.1 1313 103 1 129.-7 I25.'2 127.3 iis.'s ’97.'I 117:2 il9.'6 Mining Coal, oil, and gas........................................ 6 80 117.6 118 6 112 3 117 3 117 4 112 4 118 9 118 1 120 8 119 7 121 6 121 6 123 1 120.9 Coal.................................................................... 1 16 115 2 1186 85*9 118 1 120 0 93* 1 127 0 121 3 1324 1187 1 22 9 118 1 1171 116 0 Crude oil and natural gas...................... 5.64 118.6 1186 1178 1172 116 8 1164 1173 1174 1185 1199 121'4 122 3 124'3 121.9 Oil and gas extraction......................... 4 91 123 8 124 3 123 5 123 7 123 3 1222 122 5 122 5 124 2 126 0 127 8 129 0 130 9 130.0 Crude oil............................................... 4 25 119 4 1193 119 1 120 1 1 20 2 118 5 118 8 118 9 1 10 Q 120 8 122 0 1 77 R 125^0 124.2 Gas and gas liquids......................... . 66 151 .7 156 1 151*4 146^3 143 7 145 8 1460 145*8 151 4 159 0 164.9 168 5 Oil and gas drilling.............................. . 73 79 2 79 9 79 3 73.6 73 0 76 9 RI 9 82 7 79 8 78 8 77 9 77 4 79 4 67.2 Metal, stone, and earth minerals......... 1.43 133.2 119.3 130.4 140.2 147.7 145.6 145.6 145.4 140.9 130.0 124.2 119,9 119.4 123.0 Metal mining................................................ .61 1 32.7 119 7 129 9 147 0 151 6 143 4 142 7 145 3 138 5 123 7 120 8 123 5 127 9 128. 3 Stone and earth minerals....................... .82 133.5 119.0 130.9 135.1 144.9 147 2 147^8 145.5 142.7 134.7 126.8 117 3 113 2 119.0 Utilities Electric................. . . 1 4 04 179 7 174.8 167.4 165.3 173.5 192.3 199.5 191.7 176.2 173,2 183 5 196.5 188.1 Gas......................................................................1 1.28 156.'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

842 BUSINESS ACTIVITY; CONSTRUCTION MAY 1967 SELECTED BUSINESS INDEXES (1957-59= 100) Industrial production fac M tu a r n in u g ­ 2 Prices * Nonag­ Major market groupings Major industry s C tr o u n c ­ ­ r t i u c r u a l l ­ Freight Total Period 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. gro M u in p i g n in ­ gs U itie n s ­ t c r t a i o o c n n t ­ s T m p o e e l t m o n a y t ­ l — - • p m E lo e m n y ­ - t P ro a ll y s ­ lo i c n a a g r d s ­ ­ s r a e l t e a s il 3 s C um on e ­ r W m c s o o h a m l o d e l i ­ e 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 1960........................... 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 ”....................... 156.3 155.4 147.4 172.6 157.1 158.7 120.3 173.4 145 121.6 112.7 150.4 96.5 148 113,1 105.9 1966—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 Aug. 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............. 157.7 156.3 146.5 177.4 159.2 160.0 121.0 177.0 146 122.2 113.3 152.7 95.0 150 114.1 106.8 Oct....... 158.9 158.3 148.8 178.8 159.9 161.5 121.6 175.2 139 122.7 113.9 153.8 93.9 149 1(4.5 106.2 Nov............. 158.6 158.5 148.8 179.6 159.1 161.0 121.0 176.9 130 123.4 114.6 154,5 97.1 150 114.6 105.9 Dec....... 159.0 159.2 149.1 181.0 158.9 161.3 123.0 177.7 133 123.9 114.7 154.4 99.0 148 114.7 105.9 r158.1 158.1 rl47.8 *■180.2 rl58.O N60.1 U23.O 179.6 126 124. 5 114.7 156.2 97.4 150 114.7 106.2 Feb.............. r156.4 N56.2 H45.2 *■180.0 156.2 N58.3 *•123.1 *•178.2 143 r124.7 NI4.1 r 153.2 95.6 N49 114.8 106.0 Mar............. 156.4 r156.5 145.8 r179.4 *■155.9 158.3 H22.5 *•179.5 149 124.7 113.6 153.0 95.9 151 115.0 105.7 Apr.”.......... 155.9 156.5 146.1 178.9 155.4 157.6 122.9 179.5 124.9 112.6 151.5 95.9 150 105.3 i 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) 1966 1967 Type of ownership and type of construction 1965 1966 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan, Feb. Mar. Total construction................................ 49,272 50,150 4,737 5,098 5,132 4,854 4,774 4,302 4,083 4,106 3,461 3,189 2,838 3,300 4,424 By type of ownership: Public........................................................ 16 302 18,152 1 463 1 ,574 1 902 1,937 2,020 1 568 1,379 1,607 1 ,357 1 287 1,113 1,188 Private....................................................... 32,970 31,'998 3 ,’274 3,524 3,230 2,916 2,754 2,733 2; 704 2,499 2,104 1,902 1,725 d,’112 By type of construction: Residential building........................... 21,247 17,827 2 004 2,081 1,970 1 ,828 1 ,461 1,494 1,261 1,225 1.076 903 937 1,056 1 ,584 Nonresidential building................... 17’219 19,393 1,726 1,883 1,826 1 ^885 1’813 1 729 1,676 1 '796 1 424 1,358 1 ,175 1,430 1 J14 Nonbuilding......................................... 10,805 12,930 1,007 1,134 1,335 1,140 1,499 1,079 1,146 1,086 961 928 '726 814 1,127 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

MAY 1967 CONSTRUCTION 843 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Business Other Conser­ Period Total Total N f r a e o r s m n i­ ­ Indus­ Com­ Public n r d e o e s n n i- - - Total M tar il y i­ H w ig a h y ­ d v e a v & e ti o lo n p ­ 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 1962 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 21,93t 883 7,547 2,017 11,484 1966. ’•74,369 50,623 24,633 19,230 6,779 6,887 5,564 6,760 '23,746 770 *8,274 *2,185 *12,517 1966—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.................. 74,795 52,108 26,156 19,508 7,548 6,343 5,617 6,444 22,687 744 8,257 2,091 11,595 July......................... 72,456 50,061 25,115 18,933 7,163 6,280 5,490 6,013 22,395 800 8.175 2,107 11,313 Aug........................ 72,215 49,668 23,927 19,270 7,164 6,482 5,624 6,471 22,547 746 8,145 2,219 11,437 Sept.............. 03,757 49,725 23,100 19,678 6,913 7,054 5,711 6,947 *24,032 848 *8,191 *2,187 *12,806 Oct.......................... '71,015 46,754 22,012 18,406 6,223 6,608 4,575 6,336 *24,261 655 *8,131 *2,094 '13,381 Nov......................... '71,449 46,811 20,830 19,287 6,444 7,051 5,792 6,694 *24,638 716 *7,961 '2,427 *13,534 Dec......................... r71,326 46,876 20,459 19,657 6,250 7,516 5,891 6,760 '24,450 726 *8,119 *2,318 *13,287 1967--Jan........................... 72,937 48,281 20,739 20,419 6,664 8,138 5,617 7,123 24,656 654 8,160 2,333 13,509 Feb.**..................... 72,945 48,558 21,064 20,373 6,937 7,715 5,721 7,121 24,387 692 8,184 2,102 13,409 Mar.p............ 73,295 48,537 21,091 5,652 .....2...4...,.7...5..8. 8,209 i 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 nonresidentia! 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) By area By type of ownership Annual rate, Government- S.A. underwritten (private only) Period Total Metro­ Non­ Private Total N fa o rm n­ politan p m o e li t t r a o n ­ Total fam 1- ily fam 2- ily M fam ul i t ly i­ Public Total FHA VA 1956....................................... 1,349 1,325 24 465 195 271 1957...................................... 1,224 1/175 49 322 193 128 1958.............................. 1,382 1,314 68 439 337 102 1959.................................. 1 >554 1,077 477 1317 1 ,234 56 227 37 458 349 109 I960................................. 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...................................... 1,492 J ,054 439 1,463 991 49 422 30 339 261 78 1963 ...................................... 1 '641 1J51 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 1966...................................... 1’252 '852 400 1,220 794 40 387 32 199 158 40 1966—Mar........................ 1,569 1,538 131 91 40 126 81 5 41 5 23 19 3 Apr......................... 1,502 1,48! 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 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 I 17 13 4 1,107 1,084 107 72 35 105 71 3 31 2 18 14 4 Sept......................... I'075 1,050 95 64 31 92 62 3 27 3 13 10 3 '848 826 83 54 29 80 55 2 23 3 13 9 3 1,012 993 78 51 27 75 51 3 22 2 13 10 3 Dec.. 1,089 1,066 66 47 19 64 40 2 21 2 12 10 3 1967—Jan........................... 1,297 1,266 68 48 20 65 40 2 23 3 13 10 3 Feb.......................... i’l, 151 Pl ,135 3’65 47 18 ^63 40 2 21 ”2 12 9 3 Mar........................ p|J71 ^1,144 i’98 66 31 *96 68 3 25 i’2 18 14 5 Note.—Beginning with 1959, Census Bureau scries 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

844 EMPLOYMENT MAY 1967 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Period in T p s o o N t p t i a t . u u S l l t a . n i A o t o i n . o n a n - l l N ab o N o t . r S i n . f A o t r . h c e e T l f S a o o b r .A t c o a e . r l Total Total I E n c m u n p o lt l u n o a r y a g e l r d i- 1 agri . c ^ u n lture U pl n o e ye m d ­ U (p n e e m r S a r m e . t c A e n p e . 2 t l n o t y ) ­ industries 1961.......................... 121,343 48.312 73,031 70,459 65,746 60,546 5,200 4,714 6.7 1962.................................. 122,981 49,539 73,442 70,614 66;702 61,759 4; 944 3,911 5.5 1963................................... 125,154 50,583 74,571 71,833 67,762 63 076 4; 687 4,070 5.7 1964................................... 127,224 51,394 75,830 73,091 69,305 64,782 4,523 3,786 5.2 1965................................... 129'236 52,058 77,178 74,455 71,088 66;726 4; 361 3,366 4.5 1966................................. 131‘180 52,288 78*893 75 J70 72895 68’915 3 979 2,875 3.8 1966—Apr............. 130,749 52,938 78,349 75,341 72,542 68,343 4,199 2,799 3.7 May.................... 130,925 52,466 78,194 75;149 72,253 68,351 3,902 2; 896 3.9 June 131,083 50,356 78,767 75,668 72,730 68,749 3,981 2,938 3.9 July 131,236 50,397 78’905 75'770 72 846 68 920 3,926 2,924 3.9 Aug................... 13M19 50 ,’755 79,247 76’069 73,141 69,206 3,935 2; 928 3.8 Sept......... 131‘590 52'609 79,268 76,039 73,’195 69;309 3,886 2; 844 3.7 Oct.......... 131,772 52,285 79,360 76,081 73,199 69,420 3,779 2,882 3.8 Nov......... 131,949 52,054 79,934 76,612 73,897 70,005 3; 892 2,715 3.5 Dec.,.,.,..., 132 J21 52’479 80,154 76^764 73;893 69,882 4,011 2; 871 3.7 1967 3_jan.................... 132,295 53,589 80,473 77,087 74,255 70,240 4,015 2,832 3.7 Feb................... 132^448 53,341 80,443 77*025 74,137 70’,247 3,890 2,888 3.7 Mar, 132,627 53,678 79’959 76,523 73,747 69,892 3,855 2,776 3.6 Apr................... 132,‘795 53,234 80,189 76,740 73,910 70,020 3; 890 2; 830 3.7 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning January 1967 data not strictly comparable with previous to the calendar week that contains the 12th day; annual data are averages data. Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g ac­ Mining c C o o n t n i s o t t n r r a u c c t ­ T ti l o i r c a n n u s & ti p l i o t p i r e u t s a b ­ ­ 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............................................................................... 55,596 16,853 650 2,902 3 906 11,566 2,800 8,028 8,890 1963......................................................................... 56;702 16995 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.......................................................................... 60,770 18,032 632 3,181 4,033 12,683 3 019 9.098 10,091 1966........................................................................ 63,864 19,081 628 3,281 4,136 13,220 3,086 9,582 10,850 SEASONALLY ADJUSTED 1966—Apr............................................................ 63,350 18,923 595 3,333 4,114 13,128 3,068 9,484 10,705 May,.............................................. 63;517 19,002 628 3 238 4,132 B J64 3 076 9,515 10;762 June.......................................................... 63,983 19,167 632 3 300 4,143 13 217 3*090 9 549 10,885 July............................................................. 64;072 19;128 636 3 297 4 122 13 256 3 095 9,609 10,929 Aug.. 64;199 19 262 636 3 251 4 105 13'264 3 100 9; 647 10’934 Sept........................................................... 64,168 19 204 628 3 ,*228 4; 168 13,268 3 JOO 9,649 10,923 Oct,.................................................. 19,312 625 3; 202 4,165 13,340 3,102 9J12 11 ;oo8 Nov......................... 64,823 19315 624 3; 204 4; 195 13;393 3 J10 9,778 n jo4 Dec............................................................. 65;076 19,445 626 3’293 4.196 1 3 392 3,121 9,821 11 J 82 1967—Jan.............................................................. 65,381 19 468 628 3,301 4 230 13 503 3,129 9,869 11,253 Feb.............................................................. 65,497 19*402 626 3 350 4^225 13 ,’524 3,142 9 ,’919 11'309 Mar.”. ............... 65,513 19,351 626 3,320 4,221 13,477 3 J 58 9,977 11 J83 Apr.p,............................................. 65,611 19,234 626 3,279 4,191 13,665 3,175 9,994 11,447 NOT SEASONALLY ADJUSTED 1966—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,........................................ 64,563 19,258 645 3,521 4,180 13,239 3,112 9,702 10,906 July........................................................... 64,274 19323 645 3 ;623 4,171 13,225 3,148 9^82 10,557 Aug........................................................... 64;484 19,391 649 3,641 4; 154 13’224 3’146 9,772 10,507 Sept............................................................ 64,867 19,533 637 3,525 4 218 13,253 3,109 9,707 10,885 Oct,.......................................................... 65;190 19,538 631 3,449 4,198 13,385 3,099 9,751 11 J 39 Nov,,....................................................... 65; 389 19,522 628 3'310 4,208 13,599 3,098 9,739 11,285 Dec............................................................ 65,904 19,430 625 3,128 4.200 14,241 3,105 9,733 Il ,’442 1967—Jan.............................................................. 64,334 19,233 614 2 925 4,162 13,322 3,095 9,672 11,311 Feb............................................................. 64;286 19 J96 609 2,’841 4,153 13,’205 3 J14 9,750 11,418 Mar,’’........................................................ 64,604 19,159 609 2,895 4366 13,308 3 J 36 9,837 11,494 Apr.’’........................................................ 65,028 19,088 620 3,105 4J53 13,382 3 J62 9,974 1^544 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

MAY 1967 EMPLOYMENT AND EARNINGS 845 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1966 1967 1966 1967 Apr. Feb. Mar.” Apr.” Apr. Feb. Mar.” Apr J’ Total.................................................................................................... 14,100 14,370 14,304 14,189 13,969 14,180 14,134 14,058 Durable goods.................................................................................... 8,226 8,417 8,375 8,275 8,207 8,333 8,299 8,258 Ordnance and accessories,................................................ 114 141 144 145 113 '141 142 144 Lumber and wood products............................................ 554 537 540 528 539 509 511 514 Furniture and fixtures....................................................... 374 379 376 370 371 374 372 367 Stone clay, and glass products...................................... 521 507 509 497 516 481 487 492 Primary metal industries.................................................... 1,066 1,071 1,051 1,037 1,080 1,068 1,056 1,050 Fabricated metal products ................................................ 1 049 1 ,070 1 065 1 053 1,042 1,057 1,049 1 346 Machinery....................................................................... 1^284 1 357 1 353 1 344 1 ,299 1,362 1,365 1360 Electrical equipment and supplies................................ 1^297 1 355 1 344 1325 1.281 1,347 1 332 1,309 Transportation equipment................................................ 1 '344 1 ,361 1 357 1,338 1,355 1 376 1 365 1,349 Instruments and related products............................... 270 ’287 '288 ’287 268 285 ’286 285 Miscellaneous manufacturing industries............ 353 352 348 351 343 333 334 342 Nondurable goods............................................................................. 5,874 5,953 5,929 5,914 5,762 5,847 5,835 5,800 Food and kindred products............................................ 1 J63 1 ,184 1 190 1 , 175 I 386 1 399 1,102 1 397 Tobacco manufactures...............,.,..,....................... 74 ' 72 ’ 72 ’ 74 ’ 64 ’ 69 65 ' 63 Textile-mill products........................................................... 847 838 835 830 845 830 831 828 Apparel and related products .......................... 1 239 1,242 1,221 1,224 1,226 1,249 1,237 1,211 Paper and allied products............................. ............... ’518 '533 534 ' 532 514 526 '528 '528 Printing publishing, and allied industries....... 647 673 677 676 645 670 675 674 Chemicals and allied products...................................... 559 583 580 577 568 578 581 586 Petroleum refining and related industries........ 113 114 114 114 112 111 111 113 Rubber and misc plastic products.............................. 395 412 408 409 391 410 406 405 Leather and leather products........................................... 319 302 298 303 311 305 299 295 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. HOUKS 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 1966 1967 1966 1967 1966 1967 Apr. Feb. Mar.” Apr.1’ Apr. Feb. Mar.” Apr.” Apr. Feb. Mar,* Apr.” Total........................................................................................ 41.5 40.3 40.4 40 5 111.24 Ill 48 112.44 112 56 2.70 2.78 2.79 2.80 Durable goods..................................................................... 42.3 40.9 41.1 40.9 121.54 120.47 121.36 121 18 2.88 2.96 2 96 2.97 Ordnance and accessories.................................. 42.2 41 .5 41.7 41.6 133.46 134 05 133.95 133 63 3.17 3.23 3.22 3.22 Lumber and wood products............................. 41.3 40.3 40.8 40.7 92.48 91.64 93.50 95. 18 2.25 2.32 2.32 2.35 Furniture and fixtures.......................................... 41.6 40.1 40.2 39.9 88.75 89.72 90.35 89.38 2.17 2.26 2.27 2.28 Stone clay, and glass products.......... 42.1 41 .5 41.7 41.1 114.09 112.19 113.98 115 08 2.71 2.77 2.78 2.80 Primary metal industries.................................... 41.8 40.8 40.7 40.0 138.74 134.97 135.38 134.06 3.28 3.30 3.31 3.31 Fabricated metal products...................... 42.4 41 4 41.5 41.1 119 99 120 42 121.01 120.25 2 85 2.93 2.93 2.94 Machinery................................................................. 43.7 42.9 42.9 42 5 134 03 135 88 135.88 134 19 3.06 3 16 3.16 3.15 Electrical equipment and supplies..... ... 41.4 39.9 40.1 39.7 107.68 107.86 108.40 107.17 2.62 2.71 2.71 2.72 Transportation equipment................................. 43.4 40.7 40.7 41 5 141.47 136 21 136.49 139 33 3 29 3.38 3.37 3.39 Instruments and related products................ 42 0 40 9 41.4 41.2 112.71 113 02 113 71 113 44 2.69 2.77 2.76 2.76 Miscellaneous manufacturing industries... 40.0 38.7 39.3 39.5 87.74 90.17 92.20 9L34 2.21 2.33 2.34 2.33 Nondurable goods............................................................. 40 3 39.5 39 6 39 8 96 96 99 18 100 08 100 47 2.43 2.53 2.54 2.55 Food and kindred products............................. 41.1 41.0 41.1 41.0 102.21 105.18 106.52 106 80 2.53 2.61 2.63 2.65 Tobacco manufactures.............................. 39.2 37 5 38 5 39 1 86 49 82 08 87.89 88 92 2.27 2.28 2 35 2.34 Textile-mill products................................... 41 .9 40. 1 40.3 40.6 79.90 80.60 80.80 81 20 1.93 2 01 2 01 2.02 Apparel and related products........................... 36.4 35.6 35.5 36.2 67.51 71.04 71.80 71.80 1.87 1.99 2.00 2.00 Paper and allied products.................................. 43.7 42.7 42. 7 42 9 1 17. 50 118 44 119 43 119 57 2.72 7 80 2 81 2.82 Printing, publishing, and allied industries. 38.9 38.5 38.5 38.8 120.82 123.33 124.68 123.97 3.13 3.22 3.23 3.22 Chemicals and allied products........... 42.3 41 4 41.7 41 8 124.66 125 25 127 19 127 80 2 94 3 04 3 05 3.05 Petroleum refining and related industries.. 42.6 42.8 43.2 43.1 145.69 147.97 151.30 153.87 3.42 3.54 3.56 3.57 Rubber and misc. plastic products................ 42.4 40 7 41.0 41 3 110.62 108 95 110.16 110 57 2 64 2 69 2 70 2.71 Leather and leather products............................ 39.0 37. 1 37.0 37.4 73.33 76.13 75.85 74.57 1.94 2.03 2^05 2.06 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

846 PRICES MAY 1967 CONSUMER PRICES (1957-59= 100) Housing , Health and recreation Period ite A m ll s Food Total Rent o H w s o h n m i e p e r­ - F c a o o u n i a e d l l l t e r G a i l c e n a i c d t s ­ y o n F p t i a n i i e o u n s g r n d h r s a ­ ­ ­ A u p p a p k n e a d e r e p l T p r t o a io r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e t a i c e i n o n r a g e d n d a ­ ­ g O s a i o e c t n o e h rv d d s e ­ s r 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 75.0 673 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 (02.4 102.4 101 8 1960.................................. 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105,4 108.1 104.1 104.9 103.8 1961................................. 104.2 102,6 103.9 104.4 104.4 101 .6 107.9 101,4 103.0 105.0 107.3 111.3 104.6 107.2 104 6 1962................................. 105.4 103.6 104 8 105.7 105.6 102,1 107.9 101.5 103.6 107.2 109.4 114,2 106.5 109.6 105^3 1963................................. 106,7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107 1 1964................................. 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965 ................................. 109.9 108.8 108.5 108.9 111.4 105.6 107.8 103.1 106.8 111.1 115.6 122.3 109.9 115.2 111.4 1966.................................. 113.1 114.2 111.1 110.4 115.7 108.3 108.1 105.0 109.6 112.7 119.0 127.7 112.2 117.1 114.9 (966—Mar.............. 112.0 113.9 109.6 109.9 113.5 108.9 108.2 104.0 108.2 HI 4 117.6 125.3 111,0 116.6 113 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.................. 112.9 113.9 111.1 110.2 115.8 107.0 108.1 104,8 109.4 112.2 118.7 127.0 112.2 117.0 114.9 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...... 114.1 115.6 111.8 110.7 116,8 107.4 108.1 105.7 110.7 113.3 119.9 129,4 113.0 117.5 115 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.................... 114.6 114.8 112.6 m .2 117.8 108.9 108.1 106.5 112.0 114.5 120.8 131.3 113,4 118.3 116.0 Dec.................... 114.7 114.8 113.0 111 .3 118.6 110.2 107.9 106.7 112.3 113.8 121.0 131.9 113.7 118.4 115.9 1967—jan...................... 114.7 114.7 113.1 111.4 118,7 110.5 108.3 106.7 111.3 113.4 121.4 132.9 113.8 118.5 116.2 Feb..................... 114.8 114.2 113.3 111.7 118.9 111.1 108.3 107.0 111.9 113.8 121.8 133.6 114.1 118.6 116.3 Mar.................... 115.0 114.2 113.3 III.8 118.6 HI. 1 108.3 107.3 112.6 114.2 122.2 134.6 114.4 118.9 iie. 4 Note.—Bureau or Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ P f e f o e a s r o e n s o d e d d c s d s ­ Total T t e il e e tc x s . ­ , H e id tc e . s’ F e u tc e . l, C ic e h a t e c ls m . , ­ R b e e u tc r b . , ­ L b e u e tc m r . , ­ P e a t p c e . r, M e a t l e c s . t , ­ e c M a e q h n r u i a y d n i ­ p ­ ­ F t e u u t r r c e n . , i ­ N t m m a o l i e l n n ic ­ ­ - T e p t r q i o a o u r n n t i a p s ­ ­ ­ n c M e e o l i l s a u ­ s ­ ment erals ment 1958 100.4 103.6 102.5 99.5 98.9 96.0 98.7 100.4 100.1 97.4 100.1 99 1 100.0 100.2 99.9 n a 1959 100.6 97.2 99.9 101.3 100 4 109.1 98.7 100.0 99 7 104.1 101,0 101 2 102. 1 (00 4 101.2 n a 1960 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99 9 100.4 101.8 101 3 102.9 100 1 101 4 n a 1961 100.3 96.0 101.6 100.8 99.7 106.2 100.7 99.1 96 I 95.9 98.8 100.7 102.9 995 101 8 n a 1962 100.6 97.7 102.7 100.8 100 6 107.4 100.2 97.5 93 3 96.5 100.0 100 0 102.9 98 8 101 8 n a 1963 100.3 95.7 103.3 100.7 100.5 104.2 99.8 96.3 93.8 98.6 99.2 100 J 103. 1 98.1 101.3 n.a. 1964 100.5 94.3 103.1 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102 8 103.8 98.5 101 5 n a. 1965 102.5 98.4 106.7 102.5 101 8 109.2 98.9 97.4 92 9 101,1 99 9 105 7 105.0 98 0 101 7 1966 105,9 105.6 113.0 104.7 102. 1 119,7 101.3 97.8 94 8 105,6 102.6 108 3 108.2 99.1 102.6 106 8 1966-—Mar........................ 105.4 106.8 112,2 104.0 102 1 118.7 99 9 97.6 94.3 105.6 101 8 108 0 106.9 98 4 102 1 n a 106.5 Apr......................... 105.5 106.4 111.5 104.3 102.2 120.8 100.0 97.6 95.4 108.4 102.3 1082 107.2 986 102 3 n a May....................... 105.6 104.5 111,8 104.7 102,2 122.9 100.4 97.7 95.4 109.6 102.7 108 4 107.8 98 9 102 4 n.a June....................... 105.7 104.2 112.0 104.9 102.2 122.9 101.5 97.6 95.4 107.7 103.0 108 7 108.1 98,9 102.5 n a. July......................... 106.4 107.8 113.8 105.2 102.4 122.7 101.4 97.9 95.1 106.6 103,2 108 8 108.3 99 0 102.7 n.a Aug,...................... 106.8 108.1 115.7 105.2 102.4 121.2 102,0 97.9 95.1 106.2 103.2 108 5 108.5 99 1 102.7 n a Sept........................ 106.8 108.7 115.5 105.2 102.2 119.9 102.2 98.0 94.7 105,9 103.1 108,4 108.9 99.2 103.0 n.a. Oct,........................ 106.2 104.4 113,9 105.3 102.2 118.7 102.6 97.9 94.6 104,8 103.1 108.6 109.4 99.7 103,2 n.a. Nov......................... 105.9 102.5 112.6 105.5 102.1 117.5 102.7 98.0 95.0 103.0 103.0 109 0 110.2 100,3 103,3 n a Dec........................ 105.9 101.8 112.8 105.5 101.8 117.3 102,0 98.2 95.0 102.5 103.0 109,0 110.7 100.4 103.3 n a 107.5 1967-—Jan.......................... 106.2 102.6 112.8 105.8 102.0 117.9 r102.6 98.4 95.6 102,6 103.1 109.4 111.1 100.4 103.6 n a 107.9 Feb............,,.< 106.0 101.0 111.7 106.0 102.0 118.0 r103.4 98.5 95.8 103,6 103.3 109.6 111.2 100 4 103.7 n a 108.0 Mar......................... 105.7 99.6 110.6 106.0 101.8 117.0 103.7 98.5 95.9 103.6 103.6 109.4 lit.5 100,6 103.8 n,a. 107.7 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 PRICES 847 WHOLESALE PRICES: DETAIL (1957-59= 100) 1966 1967 1966 1967 Group Group Mar. Jan. Feb. Mar. Mar. Jan. Feb. Mar. Farm products: Pulp, paper, and allied products: Fresh and dried produce.................... 101,7 101.8 104.5 98.4 Pulp, paper, and products, excluding Grains................ . 90.8 100.7 95.8 99.9 building paper and board................... 102.2 103.5 103.7 104.0 Livestock........................................................... 115.9 101,4 99.5 97.4 Woodpulp........................................ 98.0 98.0 98.0 98.0 Live poultry..................................................... 100.9 88.1 97.1 90.8 Wastepaper....................................................... 108,7 83.9 83.2 79.7 Plant and animal fibers.............................. 89,7 70.8 70.2 70.3 Paper.................................................................... 105.4 108.5 108.5 108.5 Fluid milk......................................................... 112.7 123.4 122.9 119.0 Paperboard...................................................... 97.0 97.3 97.3 97.3 Eggs....................................................................... 118.5 100.0 84.0 90.8 Converted paper and paperboard.... 101.6 103.7 104,0 104,7 Hay and seeds................................ 115.6 123,5 120.3 120.5 Building paper and board....................... 92.5 92.4 92.4 92.3 Other farm products....................... 102.1 99.6 100.5 99.5 Processed foods and feeds: Metals and metal oroducts: Cereal and bakery products..................... 112,2 117.6 117.3 117.5 Iron and steel................................................. 102.3 103.0 103.2 103.3 Meat, poultry and fish................................ 113.3 105,4 104.7 101.7 Nonferrous metals........................................ 120,8 121.8 122.3 121.1 Dairy products............................................... 115,0 121.8 121.2 120,7 Metal containers................................... 109.8 111.5 111.5 111.5 Processed fruits and vegetables....... 104.8 105.9 104.3 104,2 Hardware........................................................... 108,3 111.9 112.0 112.4 Sugar and confectionery........................... 109.7 113.0 112.6 112.5 Plumbing equipment.................................. 105.7 110.5 HO.5 110.5 Beverages and beverage materials.... {05.7 105.8 105.9 105.6 Heating equipment...................................... 91.8 92.6 92.3 92.2 Animal fats and oils................................... 121.8 94.9 92.0 89.6 Fabricated structural metal products. 103,1 104.8 104.8 104,8 Crude vegetable oils.................................... 104.3 94. 1 94.1 94.2 Miscellaneous metal products....... HO. 9 113.6 113.6 113,7 Refined vegetable oils......................... 112.0 93.0 96.7 96.9 Vegetable oil end products....................... 103.0 106.3 103.5 101.8 Miscellaneous processed foods............... 114.4 112.6 111.5 112.0 Machinery and equipment: Manufactured animal feeds...................... 119.6 132. 1 125.9 124.8 Agricultural machinery and equip.... 118.0 121.5 121.7 121.9 Textile products and apparel: Construction machinery and equip... 117.9 121.3 121.4 121.5 Metalworking machinery and equip.. 116.7 121,9 122.2 122.6 Cotton products............................................ 101.8 102.5 101.8 101.3 General purpose machinery and Wool products................................................ 106.0 104.7 104,7 104.0 equipment............................................... 107.3 112.8 113.0 H3.0 Man-made fiber textile products..... 90.8 87.1 87.1 86.9 Special industry machinery and Silk yarns........................................................ - 151.4 166.1 164.1 164,1 equipment (Jan, 1961= 100)............... 109.9 114,8 115.1 115.4 Apparel.............................................................. 104.7 rl05.9 105.9 106.0 Electrical machinery and equip,..... 98.2 101.9 101,8 102.2 Textile housefurnishings,......................... 103.6 105.3 105.3 105.1 Miscellaneous machinery......................... 105,8 108.5 108.7 108.8 Miscellaneous textile products............... 126.3 120.5 121.0 120.8 Hides, skins, leather, and products: Furniture and household durables: O H L F e o i t d h a o e e t t s h w r e l e a e r n a . a .. d r . t . . h . . . . s . e . . . . k . . r . . . i . . n . . p . . . . s . r . . . . o . . . . . . . . d . . . . . . . . . u . . . . . . . . . c . . . . . . . t . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 1 1 4 3 2 5 7 . . . . 5 3 8 4 ' H H 1 1 2 1 1 O 0 6 4 . . . , 7 9 5 6 1 1 1 1 1 2 1 0 6 1 7 4 , . , . 3 8 6 6 1 1 1 9 2 1 1 9 1 4 4 . . . . 6 7 6 4 C H H Fl o o o o m u u o s s m r e e h h c e o o o rc v l l d d i e a r l a f i u n p fu g r p n s r li n . i a . t . i . n u t .. u c . r .. e e r .. e s . , .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 8 0 0 7 9 4 7 . . . . 1 1 5 2 1 1 9 8 1 0 4 9 1 8 . . . . 1 7 6 9 1 H 9 8 0 2 3 9 9 . . . , 0 9 7 3 1 1 9 8 0 1 3 9 9 2 . . , . 8 8 3 4 Fuels and related products, and power,: Home electronic equipment.................... 83.5 83.6 83.5 83.3 Other household durable goods..... 110,3 114.8 114.8 115.2 Coal................................................................. 97.5 102.3 102,3 102.2 Coke....................................................................... 107.3 112.0 112,0 112,0 Nonmetallic mineral products: Gas fuels (Jan. 1958= 100)....................... 128.2 ’'134.6 N34.5 134.6 Electric power (Jan. 1958= 100).... .. 100.4 100.6 100.6 100.6 Crude petroleum............................................. 97.0 98.2 98.2 98.3 Fiat glass.......................................................... 99,2 103.3 103.3 103.3 Petroleum products, refined ..................... 97.2 100.3 101.9 102.4 Concrete ingredients......................... 103.8 105.8 105.6 105.8 Concrete products......................................... 102.2 103,9 104.4 104.5 Chemicals and allied products: Structural clay products excluding refractories.................................................. 108.0 109.3 109.3 109.3 Industrial chemicals..................................... 95.2 96.6 96.9 97.0 Refractories.................................................... 103.0 104,8 104.8 104.9 Prepared paint................................................. 105.9 108.7 108.7 108.8 Asphalt roofing......................................... 94.8 95.7 94.8 94,8 Paint materials................................................ 89.8 90.6 90.8 90.8 Gypsum products........................................ 101.4 103,5 103.5 102.3 Drugs and pharmaceuticals..,.,..... 94.4 94.7 94.2 94.4 Glass containers............................................ 99.9 101.0 101.0 101.0 Fats and oils, inedible................................. 106.4 92.3 89.1 81.5 Other nonmetallic minerals..................... 102.1 101,1 101.1 101.8 Agricultural chemicals and products.. 102.8 104.2 105.4 105.9 Plastic resins and materials...................... 88.4 90.3 90.5 90.3 Transportation equipment: Other chemicals and products................ 106.5 107,4 107.6 107,8 Rubber and products: Motor vehicles and equipment............. 100.3 101.6 101.6 101.6 Railroad equipment (Jan. 1961= 100). 101.0 102.7 102.7 102,7 Crude rubber.................................................... 91.2 87.6 87.1 86.5 Tiresand tubes................................................ 91.1 94.9 94.9 94.9 Miscellaneous products: Miscellaneous rubber products....... 98.7 99.7 100.4 100.9 Lumber and wood products: Toys, sporting goods, small arms, ammunition................................................. 103.3 105.2 105.3 104.0 Lumber................................................................ 107.2 104.5 105.4 106.0 Tobacco products......................................... 109.8 110.3 HO.3 110.3 Millwork............................................................. 109.3 110.3 m.i 111.2 Notions............................................................... 99.8 100.8 100.8 100.8 Plywood...............................*............................. 97.7 87.3 89.2 87.7 Photographic equipment and supplies 109.1 110.1 110,3 HO.1 Other wood products (Dec. 1966= 100) 102.0 102,0 102,0 Other miscellaneous products....... 104,8 107.2 107.2 107,3 Note.—Bureau of Labor Statistics indexes as revised in March 1967 to classification changes. Back data not yet available for some new classi­ incorporate (1) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

848 NATIONAL PRODUCT AND INCOME MAY 1967 GROSS NATIONAL PRODUCT (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 I II III IV Ip _______ Gross national product............................................... 103.1 55.6 124.5 284.8 560.3 590.5 631.7 681.2 739.6 721.2 732.3 745.3 759.3 764.3 Final purchases.................... 101.4 57.2 120.1 27S.0 554.3 584.6 627.0 672.1 727.7 712.3 720.0 735.4 742.9 758.8 Personal consumption expenditures...................... 77.2 45.8 80.6 191.0 355.1 375.0 401.4 431.5 464.9 455.6 460.1 469.9 474.1 482.2 Durable goods.......................................................... 9.2 3.5 9.6 30.5 49.5 53.9 59.4 66.1 69.3 70.3 67.1 70.2 69.6 68. 1 Nondurable goods.................................................... 37.7 22.3 42.9 98.1 162.6 168.6 178.9 190.6 206.2 201.9 205.6 208.1 209.2 214.7 Services....................................................................... 30.3 20.1 28.1 62.4 143.0 152.4 163.1 174.8 189.4 183.4 187,4 191.5 195.3 199.3 Gross private domestic investment............... 16.2 1.4 17.9 54.1 83.0 87.1 93.0 106.6 117.0 114.5 118.5 115.0 120.0 109.0 Fixed investment.................................................. 14.5 3.0 13.4 47.3 77.0 S1.3 88.3 97,5 105.1 105.6 106.2 105.1 103.5 103.5 Nonresidential............................................... 10.6 2.4 9.5 27.9 51.7 54.3 60.7 69.7 79.3 77.0 78.2 80.3 81.6 81.6 Structures........................................................ 5.0 .9 2.9 9.2 19.2 19.5 21.0 24.9 27.8 28.5 27.9 27.7 27.3 28.7 Producers* durable equipment................. 5.6 1.5 6.6 18.7 32.5 34.8 39.7 44.8 51.4 48.5 50,3 52.6 54.4 52.9 Residential structures................................... 4.0 .6 3.9 19.4 25.3 27.0 27.6 27.8 25.8 28.6 28.0 24.8 21.9 21.9 Nonfarm.............................................................. 3.8 3.7 18.6 24.8 26.4 27.0 27.2 25.3 28,0 27.4 24.3 21.3 21.3 Change in business inventories......................... 1.7 -1.6 4.5 6.8 6.0 5.9 4.7 9.1 11.9 8.9 12.3 9.9 16.4 5.5 Nonfarm................................................................. 1.8 -1.4 4.0 6.0 5.3 5.1 5.3 8.1 12.2 8.5 12.1 10.4 17.6 5,8 Net exports of goods and services........................ 1.1 .4 1.3 1.8 5.1 5.9 8.5 7.0 4.8 6.0 4.7 4.2 4.1 4.9 Exports......................................................................... 7.0 2.4 5.9 13.8 30.3 32.3 37.0 39.0 42.7 41.7 41.9 43.4 43.6 45. 1 Imports................................................................... 5.9 2.0 4.6 12.0 25,1 26.4 28.5 32.0 37.9 35.6 37.3 39,2 39.5 40.2 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 117.1 122.5 128.9 136.2 153.0 145.0 149.0 156.2 161.1 168.2 Federal,........................................................................ 1.3 2.0 16.9 18,4 63.4 64.2 65.2 66.8 76.9 71.9 74.0 79.0 81.7 86.2 National defense................................................. 13.8 14.1 51.6 50.8 50.0 50.1 60,0 54.6 57.1 62.0 65.5 68.8 Other.......................................................................... 3.1 4.3 11.8 13.5 15 2 16.7 16.9 17.4 16.9 17.0 16.2 17.4 State and local........................................................... 7.2 6.0 7.9 19.5 53.7 58.2 63.7 69.4 76.2 73.1 75,0 77,2 79.4 82.0 Gross national product in constant (1958) dollars...................................................................... 203.6 141.5 263.7 355.3 529.8 551.0 580.0 614.4 647.8 640.5 643.5 649.9 657.2 657.2 Note,—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Supplement ta the Survey of Current Business for Aug. 1966. NATIONAL INCOME (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 I II in IV I” National income......................................................... 86.8 40.3 104.2 241 1 457.7 481 9 517.3 559.0 610.1 595 7 604,1 613.8 626.9 Compensation of employees................................... 51.1 29.5 64.8 154.6 323.6 341.0 365.7 392.9 433.3 419.6 427.9 438.3 447.5 456.1 Wages and salaries................................................... 50.4 29.0 62.1 146.8 296.1 311.1 333.6 358.4 392.3 380.0 387.4 396. 7 405,0 411.8 Private..................................................................... 45,5 23,9 51.9 124.4 240.1 251.6 269.3 289.1 314.8 305.9 311.5 318.0 323.9 328.3 Military................................................................. .3 .3 1.9 5.0 10,8 10.8 11.7 12.1 14.6 13.6 14,1 15.0 15.8 16.3 Government civilian.......................................... 4,6 4.9 8.3 17.4 45.2 48.6 52,6 57 1 62.8 60.4 61.8 63.7 65.2 67.1 Supplements to wages and salaries................... .7 .5 2,7 7.8 27.5 29.9 32.0 34.5 41.0 39.6 40.5 41.5 42.5 44.3 Employer contributions for social insurance................................................................. J .1 2.0 4.0 13.7 15.0 15.4 16.0 20.2 19.6 19.9 20.4 20.8 21.8 Other labor income.......................................... .6 .4 .7 3.8 13.9 14.9 16.6 18.5 20.8 20.0 20.6 21.1 21.7 22.5 Proprietors’ income................................................... 15.1 5.9 17.5 37.5 50.1 51.0 51.9 55.7 57.8 58.4 57.9 57.3 57.5 57.4 Business and professional............................ 9.0 3.3 11.1 24.0 37.1 37.9 39.9 40.7 41.8 41.4 41.6 41.9 42.3 42.6 Farm.............................................................................. 6.2 2.6 6.4 13.5 13.0 13.1 12.0 15 1 16.0 17.0 16 3 15.4 15.2 14.8 Rental income of persons........................................... 5.4 2.0 3.5 9.4 16.7 17.1 17.7 18,3 18.9 18.7 18.8 18.9 19.1 19.3 Corporate profits and inventory valuation adjustment................................................ . 10.5 — 1.2 15.2 37,7 55.7 58.9 66.6 74.2 80,2 80.0 79.9 79.1 81,7 Profits before tax........................................... 10.0 1.0 17,7 42.6 55.4 59.4 67.0 75.7 82.3 82.7 82.8 81.9 81.8 Profits tax liability.............................................. 1.4 .5 7.6 17.8 24.2 26.3 28.4 31.2 33.9 34.1 34.1 33.7 33.7 Profits after tax...................... 8.6 10.1 24.9 31,2 33.1 38.7 44.5 48.4 48.7 48.7 48.2 48.1 Dividends. ..................................................... , 5.8 2.0 4.4 8.8 15,2 16.5 17.3 19.2 20.9 20.9 21.1 21.1 20.7 21,5 Undistributed profits................................ 2.8 -1.6 5.7 16 0 16 0 16.6 21,3 25.3 27.5 27.8 27.6 27.1 27.4 Inventory valuation adjustment....................... .5 -2.1 -2.5 -5.0 .3 -.5 -.4 -1.5 -2.1 -2.8 -2.9 -2.8 .0 -.6 Net interest......................................................................... 4.7 4.1 3.2 2.0 11.6 13.8 15.5 17.8 20.0 19.1 19.6 20.2 21.0 21.6 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

MAY 1967 NATIONAL PRODUCT AND INCOME 849 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 I II III IV I p dross national product.............................................. 103.1 55.6 124.5 284.8 560.3 590.5 631.7 681.2 739.6 721.2 732.3 745.3 759.3 764.3 L^vc Capital consumption allowances........... 7.9 7.0 8.2 18.3 50.0 52.6 56.0 59.6 63.1 61,6 62 7 63 7 64.6 65.6 Indirect business tax and nontax lia­ bility. .....,.....,,..>........... 7.0 7.1 11.3 23.3 51.5 54.7 58,5 62.7 65.5 63.0 64.7 66.3 68.1 68.6 Business transfer payments....................... .6 .7 .5 .8 2.1 2.3 2.5 2,6 2.6 2.6 2.6 2.6 2.6 2.6 Statistical discrepancy................................... .7 .6 .4 1.5 .5 -.3 -1.4 -1.6 -.2 — .8 -. 9 .4 -.6 Plus: Subsidies less current surplus of gov­ ernment enterprises............... — .1 .2 1.4 .8 1.3 1.0 1.4 .8 .9 1.5 2.2 2.2 Equal*1- National income............................................ 86.8 40.3 104.2 241.1 457.7 481.9 517.3 559.0 610.1 595.7 604.1 613.8 626.7 Less: Corporate profits and inventory valu­ ation adjustment..................... 10.5 -1.2 15.2 37.7 55.7 58,9 66.6 74.2 80.2 80.0 79.9 79.1 81 .7 Contributions for social insurance.... .2 .3 2.8 6.9 24.0 26.9 28.0 29.2 37.8 36.5 37.0 38.5 39.3 41.5 Excess of wage accruals over disburse­ ments, ......................................................... Plus' Government transfer payments.............. .9 1.5 2.6 14.3 31.2 33.0 34.2 37.1 41.9 40.0 40.1 42,3 45.3 48.6 Net interest paid by government and consumer........................................ 2.5 1.6 2.2 7.2 16.1 17.6 19,1 20.6 22.8 21.9 22,5 23.0 23.8 24.4 Dividends............................................................ 5.8 2.0 4.4 8.8 15.2 16.5 17.3 19.2 20.9 20.9 21.1 21.1 20.7 21.5 Business transfer payments....................... .6 ,7 .5 .8 2.1 2.3 2.5 2.6 2.6 2.6 2.6 2.6 2.6 2.6 Equals^ Personal income........................................... 85.9 47.0 96.0 227.6 442.6 465.5 496.0 535.1 580.4 564.6 573.5 585.2 598,3 610.1 Less: Personal tax and nontax payments,... 2.6 1.5 3.3 20.7 57.4 60,9 59.4 66.0 75.1 69.5 73.6 77.4 79,8 81,2 Equals" Disposable personal income......... 83.3 45.5 92.7 206.9 385.3 404.6 436.6 469.1 505.3 495.1 499.9 507.8 518.4 528.9 Lesu ■ Personal outlays.............................................. 79.1 46.5 81.7 193.9 363.7 384.7 412.1 443.4 478.3 468.4 473.3 483.3 488.0 496.4 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 355.1 375,0 401.4 431.5 464.9 455.6 460.1 469.9 474.1 482.2 Consumer interest payments............... 1.5 .5 .9 2.4 8.1 9.1 10.1 11.3 12.7 12,1 12.5 12.8 13.2 13.6 Personal transfer payments to for­ eigners ................................................... .3 .2 .2 .4 .5 .6 .6 .6 .6 .6 .7 ,7 .6 .6 Equals: Personal saving............................................ 4,2 -.9 11.0 13.1 21.6 19.9 24.5 25.7 27,0 26.7 26.6 24.5 30.4 32.5 Disposable personal income in constant (1958) dollars....................................................................... 150.6 112.2 190.3 249.6 367.3 381.3 406,5 430.8 451.6 448.4 447.9 452.2 457.6 465.2 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) 1966 1967 Item 1965 1966 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.p Total personal income................................. 535.1 580.4 569.0 570.5 573.0 577.2 580.0 585.4 590.0 594.4 598.5 601.8 607.5 609.7 613.1 Wage and salary disbursements............. 358.4 392.3 382.9 384.7 387.0 390.5 393.7 397.0 399.5 402.3 405.1 407.4 410.7 411.2 413.4 Commodity-producing industries... 144.3 158.2 155.4 156,0 156.8 158,1 158.2 159.8 160.7 161.5 162,4 162.9 163.9 163.0 163.4 Manufacturing only............................. 115.5 127.2 124.0 125.2 125.9 127.0 127.1 128.9 129.6 130.7 131.4 131.4 132.2 131.1 131.6 Distributive industries........................... 86.7 93.2 91.4 91.5 91.9 92.8 93.6 93.9 94.4 95.1 95.8 96.5 97.5 97.7 97.9 Service industries..................................... 58.1 63.5 61.7 62.0 62.5 63.0 64.0 64.5 64.9 65.4 65.8 66.2 66.7 67.2 67.8 Government................................................ 69.2 77.4 74.5 75.2 75.9 76.6 78.0 78.8 79.5 80,2 81.0 81.9 82.7 83.5 84.3 Other labor income..................................... 18.5 20.8 20.2 20.4 20,6 20.7 20.9 21.1 21.3 21.5 21.7 21.9 22.2 22.5 22.8 Proprietors' income..................................... 55.8 57.8 58.8 58.2 57.9 57.6 57.3 57.3 57.3 57.2 57.4 57.8 57.9 57.4 57.0 Business and professional.................... 40.7 41.8 41.5 41.5 41.6 41.7 41.8 41.9 42.0 42.1 42.2 42.4 42.7 42.6 42.5 Farm................................................................ 15.1 16.0 17.3 16.7 16.3 15.9 15.5 15.4 15.3 15.1 15.2 15.4 15.2 14.8 14.5 Rental income............................................... 18.3 18.9 18.7 18.7 18.8 18.8 18.9 18.9 19.0 19.0 19.1 19.2 19.2 19.3 19.4 Dividends.......................................................... 19.2 20.9 20.9 21.0 21.2 21.1 21.1 21.0 21.2 21.2 21.2 19.8 21.3 21.5 21.7 Personal interest income.............. 38.4 42.8 41.4 41.8 42.1 42.3 42.6 43.1 43.8 44.3 44.8 45.3 45.7 46.0 46.3 Transfer payments........................................ 39.7 44.6 42.9 42.6 42.5 43.2 43.5 45.1 46.0 47.2 47.8 48.9 50.0 51.5 52.2 Less: Personal contributions for social insurance.................................... 13.2 17.6 16.9 17.0 17.1 17.2 17.9 18.1 18.2 18.3 18.5 18.6 19.7 19.7 19.8 Nonagricultural income............................... 515.6 559.7 547.0 549.1 551.9 556.5 559.8 565.4 570.1 574.6 578.6 581.7 587.5 590,0 593.5 Agriculture income........................................ 19.5 20.7 22,0 21.4 21.0 20.7 20.2 20.1 20.0 19.8 19.9 20.1 20.0 19.7 19.5 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, 1966 (In billions of dollars) 850 FLOW OF FUNDS MAY 1967 Private domestic nonfinancial sectors Financial sectors Rest of u the AU Natl. Sector H h o o u ld s s e- B n u es s s i- govts. Total Govt. Total Mo a n u e th ta . ry C ba o n m k l s . N f o in n a b n a ce nk world sectors Di a s n c c re y p- an s d a i v n in ve g stmeat Transaction u s u s u s u s u s u s u s u s u s u s U category U S 1 Gross saving.................................. ... 110.6 ........... 74.4.........................6 ........... 185.5 ........... -.8 ........... 3.8 .........................1 . . 2.3 ............ 1.4 . —1.7 ............ 186.8 188.5........... 1 2 Capital consumption............. ............ 63.9 ............ 53.2 ........... 117 1 .... 10 ............ 5 .........................5 ............ 118 1 118.1............ 2 3 Net saving (1 —2)......... ........... 46 7 ............ 21 1 ......... 6 ........... 68 4 ........... —.8 ........... 2 8 ........... 1 . . . 18 ... . 9 -1 7 ........... 68 7 70.4 .... 3 4 Gross investment (5-J-10).......... 112.8 ........... 71.8 .. . .7............ 185.2............ -1.1......... 2.3........... 1.7 . .5............ -1.8 184.5 ........... 1.8 188.1 4 5 Private cap. expend., net.......... 93.2 .... 92.5............ 185.7 ......... .7 .3 . . .4........... 186.3 ........... 186.3............ 5 6 Consumer durables................ 69.3............ 69.3............ 69.3........... 69.3...... 6 * 7 Residential constr.................... 19 4 . 6 4............ 25.8 .... 25.8........... 25.8_____ 7 8 Plant and equipment............... 4.5........... 74.1 . 78.6............ .7........... .3........... .4........... 79.3............ 79.3............ 8 9 Inventory change.............. 11 9 11.9 .. 11.9........... 11.9............ 9 10 Net financial invest. (11 — 12). 19.6........... -20.7............ .7............ -.4........... -1.1........... 1.6........... .1......... 1.4 -1.8 ... . -1.8........... 1.8 1.8........... 10 11 Financial uses, net....................... 43.0........... 21.3........... 10.0...........74.3........... 7.8 . . . . 55.2............ 4.2 ...... 20.9........... 30.1........... 3.6.....1...4...0.0........... 5.4............ 11 12 Financial sources...................... ............ 23.4 . . 42.0 ......... 9.4 ........ 74.8 ........... 8.9 ........... 53.6 ........... 4.1 ........... 19.5 ............ 30.1 ............ 142.7 3.6........... 12 13 Gold & aS. U.S. fgn. exch.. -.2........... -.3........... -.3 ...... .6 * ......................... 13 14 Treasury currency................... ........... 9 .7........... .7........... .7 9 .2 ......................... 14 1 15 Dem dep. and currency .. ........... 2 5 ........... 2 4 4.4 2.5 ......................... 15 16 Private domestic.................. 2.1 .. .7 . 1.5............ 44... . .3 3 2 ............ 2 0 ............ 12 .3........... 4.7 3.2 -1.5 ......................... 16 17 U.S. Govt................................ - 1 .. . . ............ —.5 .........................2 ............ —.6 -.1 -.5 — 4 ......................... 17 1R Foreign . . . ........... —2 .........................2 ............ —.4 — 2........................ —.2 ......................... 18 19 Time and svgs. accounts... 18.9........... 19.6............ -.2 20.3 — .2............ ........... 20.3 ......................... 19 20 At coml. banks.................... 11.6............ — .7............ 1.4........... 12.3........... * * 13.2 ............ 13.2 9....................... 13.2 ......................... 20 21 At svgs. instit . .................. 7.3............ 7.3........... -.2 7.1 — 2 7 1 ........... 7 1 .......................... 21 22 Life insur. reserves.................. 4.7............ 4.7........... ........ 4.6 _____ 4.6 ........... 4.7 .................... 22 23 Pension fund reserves.......... 12 1 27 12 1 2 7 ............ 1.3 ........... 8.2 .... 82 ........... 12.1 .......................... 23 2.2 2.2 .3 1.9 1.9 3 2.2 2.2 ......................... 24 11.1 23.2 3.3 33.1 7.0 6.6 21 4 62 9 7.5 6.7 50.8 7.0 3.5........... 18.4 1 28.9 6.9 — 1.4 1.4 78.2 78.1 ......................... 25 26 U.S. Govt, securities.... 7 8 1 2 1 4 8 1 6 7 1.2......... 3,5........... —2 8 - .6............ —2.6........... ............ 6.7 .......................... 26 27 State and local obtig..... 3 5 8 -.4 5.9 3 8 5 9 2.1......... 1.8........... .3............ ........... 5.9 .......................... 27 28 Corp, and foreign bonds. — 2 10 2 5,6......... 5 4 10 2 5 1 .9 * .1 5.1 .8 1.2 .7 ........... 11.8 28 1 2 * 12 5.2 4.0 5.2 4.0 — .4 -.2 ............ 4.9 ......................... 29 30 1 - to 4-family mortgages. * 13.5 1 0 4 , 4 12.5 2.5........... 8.7 — 9 2.6........... 6 1 —.9 ........... 11.6 . 30 1 2 7 3 8 5 9 ... . 7.6............ 2.4 - 5.1........... ........... 8.5 ......................... 31 32 Consumer credit................... ........... 6.9 1 5 15 6 9 5.4 . 3 1.-. 2.3............ ........... 6.9 ......................... 32 33 Bank Ioans n.e.c................... — 1 2 8 ....... 2 .. . . 3 . ll 4 .G .4 7 2 3 1 6 0 9 8 4 0 .. 9 6 4 0 — 4 1 2 3 * ♦ 9 1 .9 4 ... . ...... 4 .. ... 0 . — 4 1 . 2 3 ... 3 — 1 .2 2 .... 1 ... 2 .. . .. 5 1 9 2 . . 4 4 - 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 4 35 Open market paper... 2.3 1.1 2 3 11 19 3 4 * 1.9......... * 3.4 .3 -.1 ........... 4.4 ......................... 35 3 9 ... 7 . 1.9 4 0.. ........... 9 .........................9 ........... 1.2........... 4.0 ......................... 36 3 3 7 8 Sec T u o r it b y r k c r r s e . d a it n ... d .. .. d ... e .. a ... l . e ... r .. s .. . .. . . . .. . . .2 2 - — . 1 1 ......... 2 2 . - . — . . 1 1 — — -. 1 2 1 ......... . . 1 . 1 . — — . .1 1 . . .. . . . .. . . .. 1 ... ........ - -.. . .. 1 . 2 1 ......... . .. 1 . * ♦ * ♦ . . . . . . . . . . . . . . . . . . . . . . . ....... - ... . .. 1 .1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 8 7 9 4 1 . 1 — 4 -1 I........... 1 * .........................1 -1.0 -.2 .8 ........................ 40 41 Trade credit................................. 1 10.9 9.6 1 10 9 9 8 17 7 2......... .2............ 12.8 10.4 -2.4 ......................... 41 4 4 2 3 E M q is u e i , t y f i i n n a n n o c n ia c l o t r r p a , n b s u .. s . in . e . s . s . . 7 1 .0 1 .2 7.1 6.8 ....................... 7 8 .. . . 1 1 — 7 7 ^ 1 0 * -.8 1.7 8.6 ............ -.1 .6 5.7 1.1 3.0 3.8 4.0 ..... 1 .. 3 ... . . 6 . -7 18 .1 .8 5.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 2 3 44 Sector discrepancies (1 — 4)... — 2 2 2 6 — 1 3........... .4........... 1.5............ .7........... .9............ .1.........2...3............ 2.3 .4........... 44 1 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. loans to banks, F.R. float, and stock at F.R. Banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FLOW OF FUNDS 851 2. SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1964 1965 1966 Transa o c r t io se n c c to a r tegory, 1962 1963 1964 1965 1966 IV I II in IV I II HI IV I. Saving and investment 1 Gross national saving............................. 134.5 144.5 159.4 178.4 188.5 165.5 176.8 175.3 178,4 183.0 188.2 188.3 186.0 191.6 1 2 Households.............................................. 82.0 85.8 96.8 105.1 110.6 98.5 100.9 100.1 109.0 110,5 111.2 107.6 108.4 115.2 2 3 Farm and noncorp, business.......... 13,1 13.5 14.4 15.0 15.6 14.8 14.9 15.0 15.1 15.2 15.3 15.5 15.7 16.0 3 4 Corporate nonfin. business............. 41.8 43.9 50,8 55.3 58.7 51.3 55.0 54.5 55.5 56.4 57.7 57.8 57.9 61.4 4 5 U.S. Government.................................. -4.8 -.6 -4.3 .2 -.8 -1.6 3.2 2.7 -4.0 — LI 1.2 2.1 -1.7 -4.8 5 6 State and local govt............................. -1.4 -1.5 -1.4 -1.0 .6 -.5 -.9 -.9 -1.0 -LI -.2 .9 LI .5 6 7 Financial sectors................................... 3.8 3.5 3,1 3.6 3.8 3.1 3.6 3.9 3.9 3.1 3.0 4.5 4.5 3.3 7 8 Gross national investment...................... 133.9 143.8 157.0 176.4 188.1 t60.7 172.6 172.7 176.9 183.1 186.4 187.4 188.3 190.4 8 9 Consumer durable goods.................. 49.5 53.9 59.4 66.1 69.3 58.8 65.1 64.4 66.7 68.0 70.3 67.1 70.2 69.6 9 10 Business inventories.................. 6.0 5.9 4.7 9.1 1 1.9 7.4 9.5 7.7 8.8 10.4 9.0 12.3 9.9 16.4 10 11 Gross pvt. fixed investment............ 77.0 81.3 88.3 97.5 105.1 90,0 94.4 96.0 98.0 101.5 105.6 106,2 105.1 103.5 11 12 Households...................................... 21.9 22.4 23.2 23.7 23.9 23.3 22.9 23.2 23.6 24.9 24.7 24.4 24.2 22.3 12 13 Nonfinan. business.......................... 54.4 57.9 64.2 73.0 80.6 65.8 70.5 71.9 73.5 76.1 80.0 80.9 80.5 80,8 13 14 Financial sectors............. .6 1.0 .9 .8 .7 .9 .9 .9 .9 .4 .9 .9 .4 .4 14 15 Net financial investment......... 1.3 2.8 4.7 3.7 1.8 4.5 3.6 4.6 3.5 3.2 1.6 1.8 3.0 .8 15 16 Discrepancy (l>8)................................. .7 .6 2.4 2.0 .4 4.8 4.2 2.6 1.5 -.2 L8 .9 -2.3 1.2 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 54.2 58.5 67.0 72.1 71.1 67.4 76.3 72.3 61.2 78.8 84.1 82.9 63.5 53.7 17 18 Loans and short-term securities.... 15.0 19.0 26.4 33.0 27.8 35,0 36.8 33.1 21.2 41.1 26.8 21.1 26.7 36.9 18 19 Long-term securities and mtgs............ 39.2 39.5 40.6 39.1 43.2- 32.5 39,5 39.2 40.0 37.7 57.4 61.8 36.8 16.8 19 By sector 20 U.S. Government...................................... 7.9 5.0 7. 1 3.5 6.7 4.6 9.0 L4 -4.5 8.2 14.9 2.8 7.0 2.2 20 21 Short-term mkt. securities....... .7 1.4 4.0 3.5 2.2 8.7 5.5 3.6 -3.5 8.3 1.3 -12.7 6.3 14.1 21 22 Other securities...................................... 7.3 3.6 3.0 .1 4.5 -4.1 3.6 -2.3 -L0 —. 1 13.6 15.5 .8 -11.8 22 23 Foreign borrowers.................................... 2.1 3.3 4.4 2.6 1.4 6.4 5.1 L6 1.0 2.7 2.3 2.4 .9 23 24 Loans.......................................................... 1.1 2.2 3.7 1.9 1.0 4.4 4.3 LI .2 L9 1.0 2.0 .2 .8 24 25 Securities................................................... 1.0 LI .7 .8 .4 2.0 .8 .6 ,8 .8 1.3 .3 .1 25 26 Pvt. domestic nonfin. sectors....... 44.2 50,2 55.6 66.0 62,9 56.4 62.1 69.2 64.7 67.8 66.9 77.8 56.3 50.5 26 27 Loans......................................................... 13.3 15.5 18.7 27.7 24.6 21.8 27.0 28.4 24.5 30.9 24.5 31.8 20.2 22.0 27 28 Consumer credit................................ 5.5 7.3 8.0 9.4 6.9 7.2 10.0 9.6 9.3 8.9 9.2 7.0 6.9 4.6 28 29 Bank loans n.e.c................................. 4.8 5.4 6.5 13.6 10.8 11.4 14.1 12.4 11.2 16.7 9.0 17.4 7.9 8.8 29 30 Other loans................................ 3.0 2.7 4.2 4.7 6.9 3.1 2.9 6.4 4.1 5.3 6.2 7.4 5.4 8.6 30 31 Securities and mortgages................. 31.0 34.7 ■ 36.9 38.3 38.3 34.7 35.1 40.8 40.1 37.0 42.5 46.0 36.1 28.5 31 32 State and local obligations.......... 5.0 6.7 5.9 7.4 5.9 5.8 6.1 8.6 6.8 8.1 5.4 7.2 4.8 6.2 32 33 Corporate securities................. 5.1 3.6 5.4 5.4 11.4 3.1 4.4 7.0 7.4 2.9 11.9 15.2 11.7 6.9 33 34 I~ to 4-family mortgages.............. 13.0 15.2 15.7 16.0 12.5 15.2 15.9 15.5 16,2 16.5 15.2 14.0 11.3 9.5 34 35 Other mortgages................................ 7.9 9.3 10.0 9.5 8.5 10.5 8.7 9.7 9.8 9.5 10.0 9.6 8.4 6.0 35 36 Net sources of credit (= line 17)... . 54.2 58.5 67.0 72.1 71.1 67.4 76.3 72.3 61.2 78.8 84.1 82.9 63.5 53.7 36 37 Chg. in U.S. Govt, cash balance.. 1.3 -.4 .2 -L0 -.5 -1.4 5.2 -.9 -10.4 2.1 -5.1 8.9 -L8 -4.0 37 38 U.S. Govt, lending............................. 3.3 2.7 3.8 4.7 7.5 3.6 5.3 6.4 3.1 3.9 11.3 10.0 6.6 1.9 38 39 Foreign funds.......................................... 2.2 L9 2.5 .4 -.8 3.9 -.6 .5 -.9 2.7 -L7 4.6 -4.0 -1.8 39 40 Pvt. insur. & pension reserves.... 9.0 IOJ ILt 11.6 12,8 11.9 10.9 12.0 12.0 11.7 12.9 11.2 13.5 13.4 40 41 Sources n.e.c............................................ 4.0 4.7 5.4 7.4 7.9 5.1 10.2 8.7 3.5 7.4 11.4 3.7 13.0 3.5 41 42 Pvt. domestic nonfin. sectors..... 34.4 39,5 44.1 48.9 44.2 44.4 45.2 45.6 54.0 51.0 55.3 44.5 36.3 40.5 42 43 Liquid assets..................................... 31.4 37,4 33.0 43.3 24.0 38.0 44.5 35.2 44.3 49.1 33.4 26.7 10.3 25.4 43 44 Deposits........................................... 30.1 34.4 35.3 40.4 22.5 42.7 38.2 31.5 43.4 48.6 27.7 27.3 13.4 21.6 44 45 Demand dep. and currency 2.1 5.9 6.5 7.8 2.9 10.2 3.1 2.6 8.7 16.8 2.8 3.5 -2.5 7.5 45 46 Time and svgs. accounts... 28.1 28.5 28,8 32.6 19.6 32.5 35.1 28.9 34.7 31.8 24.8 23.8 15.9 14.0 46 47 A t commercial banks.... 15.0 13.4 13.0 19.5 12.3 17.2 21.8 16.6 21.5 18.1 15,1 19.0 10.6 4.6 47 48 At savings ins tit................. 13.0 15.1 15.8 13.1 7.3 15.2 13.3 12.3 13.2 13.6 9.7 4.8 5.3 9.4 48 49 Short-term U.S. Govt. sec... 1.3 3.0 -2.3 2.8 1.5 -4.7 6.3 3.7 .9 .5 5.8 -.6 -3.1 3.9 49 50 Other U.S. Govt, securities.... .4 L7 3.1 .2 6.6 1.6 -.7 3.5 -1.0 -Lt 7.2 6.9 8.7 3.6 50 51 Pvt. credit mkt instruments... 2.5 2.3 7.8 6.1 13.3 4.7 1.7 6,2 10.5 6.0 13.3 10.5 20.2 9.2 51 52 Less security debt............................ -.2 2.0 -.2 .6 -.3 * .3 -.7 -.2 3.0 -L3 -.4 2.9 -2.3 52 III. Direct lending in credit markets 53 Total funds raised...................................... 54.2 58.5 67.0 72.1 71.1 67.4 76.3 72.3 61.2 78.8 84.1 82.9 63.5 53.7 53 54 Less change in U.S. Govt, cash.... 1.3 -.3 .2 -1.0 -.5 -1.5 5.3 -.9 -10.4 2.1 -5.1 8.9 -1.8 -3.9 54 55 Total net of U.S. Govt, cash............... 52.9 58.8 66.9 73.1 71.5 68.9 71.0 73.2 71.6 76.7 89.2 74.0 65.3 57.6 55 56 Funds supplied directly to cr. mkts.. 52.9 58.8 66.9 73.1 71.5 68.9 71.0 73.2 71.6 76.7 89.2 74.0 65.3 57.6 56 57 Federal Reserve System.................... 1.9 2.6 3.2 3.8 3.3 3.4 5.8 4.1 3.1 2.4 2.5 6.3 4.3 57 58 Total........................................................ 2.0 2.9 3.4 3.8 3.5 3.8 6.0 3.8 4.3 1.2 2.1 2. 1 6.0 3.7 58 59 Less change in U.S. Govt. cash. .1 .3 .2 * .2 .4 .2 -.3 1.2 -1.2 -.4 2.0 -.3 -.7 59 60 Commercial banks, net...................... 18.2 19.7 21.7 29.3 18.9 29.5 25.8 21.3 29.9 40.3 22.9 29.9 10.0 12.8 60 61 ‘ Total....................................................... 19.5 19.4 22.2 29.1 18.3 28.0 31.3 22.7 18.3 43.9 18.3 37.1 8.4 9.5 6t 62 Less chg. in U.S. Govt. cash... 1.2 -.6 -1.0 -.6 -1.9 5.0 -.6 -11.6 3.3 -4.7 6.9 -L5 -3.3 62 63 Security issues............................... .1 .3 .6 .8 .1 .4 .5 2.0 . 1 .4 .1 .3 * * 63 64 Nonbank finance, net........................ 23.8 28.0 28.9 27.1 21.7 29.6 28.0 27.1 26.9 26.4 26.6 15.4 22.5 22.4 64 65 Total.......................................... 28.5 34.4 33.4 32.7 24.8 31.2 34.7 37.7 24.0 34.6 34.1 23.6 16.4 24.9 65 66 Less credit raised.............................. 4.7 6.4 4.4 5.6 3.0 1.5 6.7 10.5 -2.9 8.2 7.5 8.2 -6.0 2.5 66 67 U.S. Government............................... 3.3 2.7 3.8 4.7 7.5 3.6 5.3 6,4 3.1 3.9 1L3 10.0 6.6 1.9 67 68 Foreign.................................................. 1.5 ,9 .6 -.2 —1.4 1.3 -.7 .2 -L8 1.4 -1.6 L4 -2.8 -2.7 68 69 Pvt. domestic nonfin........................... 4.3 5.1 8.8 8.5 21.7 L7 7.0 14.1 10.6 2.4 27.7 17.2 22.9 19.0 69 70 Households.......................................... -1.7 .4 3.4 2,7 1 LI L2 -3.0 11.7 3.8 -L9 12.2 10.4 15.1 6.5 70 71 Business.............................. 2.3 3.1 L7 .9 3,3 -1.5 .2 -2.6 4.5 1.7 6.1 .9 3.7 2.4 71 72 State and local govts.............. 3.6 3.5 3.6 5.5 7.0 2.1 10.0 4.3 2.1 5.7 8.0 5.4 6.9 7.7 72 73 Less net security credit................. — .2 2.0 -.2 .6 - .3 * .3 -.7 -.2 3.0 -1.3 -.4 2.9 -2.3 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. See also notes on p. 853. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

852 FLOW OF FUNDS MAY 1967 3. PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1964 1965 1966 Transaction category, 1962 1963 1964 1965 1966 or sector IV I II III IV I II HI IV I, Demand deposits and currency 1 Net incr. in banking system liability. . 4.5 5.8 7.4 7.6 2.5 10.3 7.7 1.7 -.1 21.1 -3.6 14.1 -5.4 4.9 1 2 U.S. Govt, deposits................................ 1.3 — . 3 .2 -1.0 -.5 -1.5 5.3 -.9 -10.4 2. 1 -5.1 8,9 -1.8 -3.9 2 3 Other............................................................... 3.2 6. 1 7.3 8.6 3.0 11.8 2.5 2.6 10,3 19.0 1.5 5.2 -3.6 8.8 3 4 Domestic sectors................................ 3.1 6.0 6.8 8.5 3.2 10.7 3.1 3.1 9.6 18.3 1.4 4.0 -1.8 9.1 4 5 Households....................................... 2.7 4.3 6.7 7.2 2. 1 13.9 6.3 .9 6,1 15.4 -3.4 2.6 .5 8.9 5 6 Nonfinancial business.................. -.9 -.8 -2.5 -1.9 .7 -8.7 .6 -3.1 -4.5 -.6 4.0 1.6 -.7 -2.0 6 7 State and local govts.................... .9 2.4 1.4 1.0 1.5 3.3 -4.5 4.6 3.2 ,7 1.4 3.1 .6 .9 7 8 Financial sectors............................ 1.1 .2 .3 .7 .3 .5 .5 .9 1.5 -1.4 .5 .7 1.6 8 9 Mail float.............................. -.6 —. 1 .9 1.5 -1.5 1.7 .6 4.0 1.3 .8 -3.7 -2.9 -.3 9 10 Rest of the world............................... — . 1 -------.— . 1 .5 . 1 -.2 — 1.1 -.7 -.5 —.—_ .7 ——— .8 . 1 1.2 -1.9 - .3 10 II. Time and savings accounts 11 Net increase—Total..................................... 28.7 29.5 30.4 32.9 20.3 34.5 35.5 29.5 34.4 32.2 24.3 25.3 16.2 15.2 11 12 At commercial banks—Total........... 15.6 14.3 14.5 20.0 13.2 19.0 22.7 17,6 21.4 18.4 14.9 20.9 11.2 5.8 12 13 Corporate business........................... 3.7 3.9 3.2 3.9 -.7 3.4 6.4 5.7 2.5 .9 4.1 1.7 -3.9 -4.6 13 14 State and local govts........................ 1.0 1.6 1.7 2.4 1.4 2.7 1.9 1.1 3.1 3.3 -.3 2.3 1.9 1.9 14 15 Foreign depositors............................. . 6 1.0 1.4 . 6 .9 1.6 .8 .8 ,2 .5 -.2 2.0 .6 1.2 15 16 Households............................................ 10.3 7.9 8.2 13.3 11.6 11.2 13.5 9.8 15.8 13.9 11.3 15.0 12.6 7.4 16 17 At savings institutions.......................... 13.1 15.2 15.9 12.9 7. 1 15.4 12.8 H.9 13.0 13.8 9.4 4.4 5.0 9.4 17 18 Memo: Households total........................ 23.4 23.0 23.9 26.4 18.9 26.4 26.8 22.1 29. 1 27.6 21.0 19.8 17.9 16.7 18 III. U.S. Govt, securities 19 Total net issues............................................... 7.9 5.0 7.0 3.5 6.7 4.4 9.0 1.4 -4.5 8.2 14.9 2.8 7.0 2.2 19 20 Short-term marketable......................... . 6 1.4 4.0 3.5 2.2 8.6 5,5 3.6 -3.5 8.3 1.3 -12.7 6.3 14.1 20 21 Other................................................. 7.3 3.6 3.0 .1 4.5 -4.1 3.6 -2.3 -1.0 -.1 (3.6 15.5 .8 -H.8 21 22 Net acquisitions, by sector...................... 7.9 5.0 7.0 3.5 6.7 4.4 9.0 1.4 -4.5 8.2 14.9 2.8 7.0 2.2 22 23 Federal Reserve System....................... 1.9 2.8 3.5 3.7 3.5 3.7 5.9 4.2 4.3 .5 2.4 1.8 6.8 3.1 23 24 Short-term.............................................. 2.0 4.9 2.1 3.7 5.4 3.5 12.4 6.2 -.3 -3.6 5,2 -3.5 6.9 13.0 24 25 Commercial banks.................................. 1.4 -2.6 .4 -2.3 -2.8 1.7 -2.6 -10.2 -1.7 5.3 -1.9 .5 -5.7 -4.2 25 26 Short-term marketable............... -5.2 -3.5 3.9 -1.7 -4.6 8.5-10.6 -5.7 2.4 7.2 -10.7 -4,9 . 1 -2.9 26 27 Other direct........................................... 5.2 .5 -4.1 -1.4 1.0 -9.3 7.9 -5.3 -6. 1 -2.3 8.3 -.9 -2.0 -L.6 27 28 Nonguaranteed.................................... 1.4 .3 .6 .8 .8 2.4 .8 2.1 .4 .5 6.3 -3.8 .3 28 29 Nonbank finance..................................... 1.6 -.5 2.0 -.8 .6 .6 2.2 -.8 -5.9 1.5 4.0 -4.3 4.4 -1.9 29 30 Short-term marketable..................... .8 -1.3 1.2 -.3 1,3 .6 . 1 - . 1 -4.4 3.2 3.0 -2.8 4.8 .4 30 31 Other direct........................................... .6 .6 .5 -.7 -1.1 -.7 2.1 -1.4 -2,1 -1.5 . 1 -1.8 -.5 -2.3 31 32 Nonguaranteed.................................... .2 .3 .3 .3 .4 .6 * .7 .5 -.1 .9 .4 ♦ 32 33 Foreign............................................. 1.3 .6 .5 -.2 -2.6 1.7 -2.0 .9 - 1.0 1.5 -2.6 -1.5 -4.0 -2.3 33 34 Short-term............................................. 2.2 -.6 -.4 - .8 1.7 -1.9 -.1 -1.5 1.8 -1.7 -. 1 -2,1 .7 34 35 Pvt. domestic nonfinan. sector.... 1.7 4.7 .8 3.0 8.1 -3.2 5.6 7.2 -.2 -.7 13.0 6.2 5.6 7.5 35 36 Short-term marketable.................... .9 1.8 -3.3 2.2 .9 -5.9 5.5 3,3 .3 -.3 5.4 -1.3 -3.4 3.0 36 37 Other direct.......................................... -. 1 1.0 2.8 -1.1 2.4 1,6 -1.3 .5 -2.3 -1,3 3.3 -3.6 6.0 4.0 37 38 Nonguaranteed................................... .5 .7 .4 1.3 4.2 .5 3.0 1.3 .2 3.9 10.5 2.7 -.4 38 39 Savings bonds—Households.... .4 1.2 .9 .6 .6 1.0 .8 .4 .5 .8 .3 .7 .3 ,9 39 —-------- ———-------.— —— —--—----_- —--------—. ——— IV. Other securities 40 Total net issues, by sector....................... 11.5 13.1 14.6 16.2 18.6 13.0 13.3 20.0 16.6 14.9 20.3 23.3 18.3 12.4 40 41 State and local govts.............................. 5.0 6.7 5.9 7.4 5.9 5.8 6.1 8,6 6.8 8.1 5.4 7.2 4.8 6.2 41 42 Nonfinancial corporations............ 5.1 3.6 5.4 5.4 11.4 3.1 4.4 7.0 7.4 2.9 11.9 15,2 11.7 6.9 42 43 Commercial banks............................ .3 .6 .8 .4 .5 2.0 . 1 .4 . 1 .3 * 43 44 Finance companies ................................ .3 1.4 2.1 1.9 .8 1.7 1.6 1.8 1.5 2.7 1.6 .3 1.9 -.8 44 45 Rest of the world.................................... 1.0 1.0 ,7 .9 1,0 2.0 1.3 1.0 .7 .8 1.7 1.0 .6 .6 45 46 Net purchases................................................. 11.5 13.1 14.6 16.2 18.6 13.0 13.3 20.0 16.6 14.9 20.3 23.3 18.3 12.4 46 47 Households................................................. -1.7 -2.9 1.8 .7 3.3 -1.0 -2.6 2.5 3.6 -.7 4.9 .2 8.9 -.9 47 48 Nonfinancial corporations.................. -.4 .9 .2 .7 .8 .3 .6 .7 .8 ,8 .8 .8 .7 .8 48 49 State and local govts...................... 2.0 2.5 2.7 2.7 5.2 2.9 2.5 1.5 3.3 3.3 4.2 6.6 5.3 4.8 49 50 Commercial banks.................................. 4.4 5.2 3.6 4.9 1.7 4,2 5.0 6.5 4.1 4,1 3.3 5.0 1.2 -2.5 50 51 Insurance and pension funds............ 7.5 7.6 7.3 9.7 9.5 7.4 9.0 9.6 10.7 9.4 11.0 8.4 9,7 8.8 51 52 Finance n.e.c.............................................. -.3 -.2 - .8 -2.0 -3.1 -.2 -1.4 .2 -5.0 -1.8 -4.9 .3 -8.2 .6 52 53 Security brokers and dealers.. .. .4 .2 -.4 -.4 .3 .4 .6 -2.8 -2.2 2.5 -4.2 2.2 53 54 Investment cos., net.......................... -.8 -.5 -.8 -1.6 —2.6 -.5 -1.8 -.4 -2.2 -1.9 -2.8 -2.2 -4.0 -1.6 54 55 Portfolio purchases....................... 1.1 .8 1.1 1.6 1.4 2.1 .8 1.9 1.3 2.3 2.5 1.1 -.2 2.0 55 56 Net issues of own shares.......... 1.9 1.2 1.8 3.1 4,0 2,6 2.6 2.3 3.5 4.2 5.3 3.3 3.8 3.6 56 57 Rest of the world.................................... ♦ .2 -.2 -.5 .5 -.1 .1 -1.0 -1.0 -.1 .6 1.0 .1 . 1 57 —-------.—--------- ——_ V. Mortgages 58 Total net lending................................ 21.3 25.0 25.4 25.4 20.0 25.4 24.7 25.4 25.7 25.8 25.6 22.4 17.9 14.3 58 59 1- to 4-farnily.............................................. 13.4 15.7 15.4 16.0 H ,6 14.9 15,9 15.7 16.0 16.3 15.6 12.9 9.5 8.3 59 60 In process............................................... .4 .5 -.3 -.1 -.9 -.3 * .2 -.2 -.2 .4 -1.1 -1.8 -1.2 60 61 Disbursed................................................ 13.0 15.2 15.7 16.0 12.5 15.2 15.9 15.5 16.2 16.5 15.2 14.0 11.3 9.5 61 62 Other........................................................... 7.9 9.3 10.0 9.5 8.5 10.5 8.7 9.7 9.8 9.5 10.0 9.6 8.4 -6.0 62 63 Net acquisitions............................................. 21.3 25.0 25.4 25.4 20.0 25.4 24.7 25.4 25.7 25.8 25.6 22.4 17.9 14.3 63 64 Households............................................ -.3 -.1 -.6 * -.9 -.6 -1.1 .1 -2.5 .3 1.0 1.1 64 65 U.S. Government.................................... .3 -1.0 .3 1.0 3.4 -.2 .7 1.0 .7 1.5 4.6 4. 1 3.0 1.9 65 66 Commercial banks.................................. 4.0 4.9 4.5 5.6 5.0 4.6 4.7 5.6 6.4 5.8 5.3 5.3 5.0 4.5 66 67 Savings institutions................................. 13.2 16.1 14.8 13.0 6.6 14.7 13.0 13.0 13.1 12.8 11.4 7.2 3.7 4.0 67 68 Insurance..................................................... 3.0 4.0 5.1 5.5 5.2 5.6 5.9 5.5 5. 1 5.3 6.0 5.8 5.5 3.7 68 69 Mortgage companies........................ .5 .8 .4 .5 -.6 .2 .9 .5 1.0 -.1 .4 -.6 -.7 — 1.3 69 ————————— VI. Bank loans n.e.c. 70 Total net borrowing.................................... 6.2 7.6 8.7 16.4 9.4 13.7 19.2 13.9 12.9 19.6 7.9 21.3 2.4 6.1 70 71 Nonfinancial business.......................... 4.3 5.0 5.1 12.3 11.0 8.3 13.5 11.0 9,9 14.8 10,5 16.5 7.6 9.2 71 72 Nonbank finance.................................... 1.0 1.7 .5 2.4 -1.2 .1 2.3 2.6 1.3 3.3 -.4 3.4 -5.6 -2.3 72 73 Households............................................ .5 .4 1.4 1.3 -.2 3.1 .6 1.4 1.3 1.9 -1.4 .8 .3 -.4 73 74 Rest of the world .................................... .4 .5 1.7 .4 - .2 2.2 2.8 -1.1 .4 - .4 -.7 .4 . 1 -.5 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. See also notes on p. 853. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FLOW OF FUNDS 853 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 I) 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 61, 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 65 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 66 is line 22 of Table 4(1) plus line 5 of 4(1.7) less line 5 of 4(1.8). ments statement. Line 69 is the net sum of lines 49-52 in Table 2-IL Relation of saving-investment discrepancy to flow of funds matrix is described on page 1536 of Nov. 1965 Bull. Notes to Table 3 II. Financial flows-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 I) by households, nonfinanctal business, IH. 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 Monetary Fund and includes nonguaran­ of line 17 plus financial-sector borrowing (Table 4(H), line 32 and Table teed issues of Govt, agencies and loan participation certificates. See note 7 4(1), line 22). to 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 26-30. 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 households) 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 9-12 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 1962 1963 1964 1965 1966 IV I II III IV I II in IV (A) Households1 1 Personal income......................................... 442.6 465.5 496.0 535.1 580.4 507.5 518.1 527.6 541,9 552.8 564.6 573.6 585.2 598.2 1 2 Less: Personal taxes & nontaxes.. 57.4 60.9 59.4 66.0 75.1 60.9 64.9 66.6 65.7 66,7 69.5 73.7 77.4 79.8 2 3 Personal outlays....................... 363.7 384.6 412.1 443.4 478.3 420.0 430.3 438.6 447. 1 457.6 468.4 473.3 483.3 488.0 3 4 Equals: Personal saving......................... 21.6 19.9 24.5 25.7 27.0 26.6 22.8 22.4 29.0 28.5 26.7 26.6 24.5 30.4 4 5 Plus: Credits from Govt, insur.2. 3.5 4.0 4.4 4.1 4.0 4.2 4.1 4.4 4. 1 3.6 3.8 4.5 3.9 3.9 5 6 Other adjustments 3....... .5 .5 .6 .9 1.3 .7 .7 .6 .7 1.8 1.8 .6 .8 2.1 6 7 Net durables in consumpt... 6.7 8.9 11.3 14.6 14.3 9.5 14.9 13.4 14.8 15.2 16.6 12.6 14.8 13.3 7 8 Purchases................................ 49.5 53.9 59.4 66.1 69.3 58.8 65.1 64.4 66.7 68.0 70.3 67.1 70.2 69.6 8 9 Less: Cap. consumpt........ 42.9 45.0 48.0 51.5 55.0 49.3 50.2 51.0 51.9 52.8 53.7 54.5 55.4 56.3 9 10 Equals: Net saving................................... 32.3 33.3 40.8 45.3 46.7 41.0 42.5 40.8 48.6 49. 1 48.8 44.2 44.0 49.7 10 11 Plus: Capital consumpt.4............... 49.8 52.4 56.0 59.9 63.9 57.4 58.4 59.4 60.4 61.4 62.4 63.4 64.4 65.4 11 12 Equals: Gross saving............................. 82.0 85.8 96.8 105.1 110.6 98.5 100.9 100.1 109,0 110.5 111,2 107.6 108.4 115.2 12 13 Gross investment (14+18).................... 83.5 87.2 99.3 107.8 112.8 107.5 99.7 106.3 112.4 112.8 111.0 109,1 111.5 119.4 13 14 Capital expend, (net of sales).... 71.5 76.3 82.6 89.7 93.2 82.1 88.1 87.6 90.3 93.0 95.0 91.5 94.4 91.9 14 15 Residential construction.............. 18.7 19.0 19.6 19.5 19.4 19.5 18,8 19.0 19.6 20.7 19.9 19.9 19.8 17,8 15 16 Consumer durable goods............ 49.5 53.9 59.4 66.1 69.3 58.8 65.1 64.4 66.7 68.0 70.3 67.1 70.2 69.6 16 17 Plant and equip, (nonprofit). .. 3.2 3.4 3.7 4.2 4.5 3.8 4.1 4.2 4.0 4.3 4,7 4.5 4.3 4.5 17 18 Net finan. investment (19 — 37)............ 12.1 10.9 16.7 18.1 19.6 25.4 11.6 18.7 22.1 19.9 16,0 17.7 17.1 27.5 18 19 Net acquis, of finan. assets 5 — ... 32.6 37.2 43.9 47.8 43.0 52.5 39.9 47.9 51.1 52.3 41.9 43.9 39.7 46.3 19 20 Demand dep. and currency.... 2.7 4.3 6.7 7.2 2.1 13.9 6.3 .9 6.1 15.4 -3.4 2.6 .5 8.9 20 21 Savings accounts.............................. 23.4 23.0 23.9 26.4 18.9 26.4 26.8 22.1 29.1 27.6 21.0 19.8 17.9 16.7 21 22 At commercial banks............... 10.3 7.9 8.2 13.3 11.6 11.2 13.5 9.8 15.8 13.9 11.3 15.0 12.6 7.4 22 23 At savings instutitions............. 13.0 15.1 15.8 13.1 7.3 15,2 13.3 12.3 13.2 13.6 9.7 4.8 5.3 9.4 23 24 Life insurance reserves................. 3.7 4.2 4.3 4.8 4.7 4.2 4.6 4.8 4.9 4.8 4.7 4.7 4.8 4.7 24 25 Pension fund reserves.................... 8.8 9.9 11.2 10.9 12.1 12.0 10.4 11.6 11.2 10.6 11.9 11.0 12.6 12.7 25 26 Cr. market instr................................. -1.7 .4 3.4 2.7 11.1 1.2 -3.0 11.7 3,8 -1.9 12.2 10.4 15.1 6.5 26 27 U.S. Govt, securities................. ♦ 3.5 1.7 2.6 7.8 2.2 .5 9.9 1.3 -1.3 9.8 9.9 5.3 6.3 27 28 Savings bonds.......................... .4 1.2 .9 .6 .6 1.0 .8 .4 .5 .8 .3 .7 .3 .9 28 29 Short-term mkt........................ .4 2.8 -1.8 3.0 2.1 -.5 5.5 5.2 2.0 -.4 .4 6.4 -6,2 7.7 29 30 Other direct.............................. -1.1 -.9 1.7 -1.2 1.1 1.3 -3.6 1.0 -1.3 -.7 6.7 -7.3 6.8 -1.9 30 31 Nonguaranteed....................... .3 .4 .9 . 1 4.1 .3 -2.1 3.4 .1 -1.0 2.4 10.1 4.3 -.5 31 32 State and local oblig................ .8 .7 2.5 2.2 3.5 1.6 .8 1.5 2.4 4.4 1.9 .7 4.0 7.3 32 33 Corporate and fgn. bonds... -.7 -1.0 -.8 -.1 -.2 .3 -2.6 2.7 1.7 -2.1 1.8 -3.5 4.0 -3.2 33 34 Corporate stock........................... -1.8 -2.5 .1 -1.5 * -3.0 -.8 -1.7 -.5 -2.9 1.2 3.0 .9 -5.0 34 35 Mortgages...................................... * -.3 -.1 -.6 * * -.9 -.6 -1.1 .1 -2.5 .3 1.0 1.1 35 36 Net invest, in noncorp. bus.. . . -4.9 -5.3 -6.6 -5.8 -7.1 -5.8 -6.1 -6.0 -5.7 -5.4 -7.4 -7.4 -7.1 -6.4 36 37 Net increase in liabilities................. 20.5 26.3 27.2 29.7 23.4 27.1 28.3 29.1 28.9 32.4 25.9 26,3 22.6 18.8 37 38 Credit mkt. instruments............... 20.4 24.1 27.1 28.5 23.2 27.3 28.0 28.2 28.5 29.4 24.9 24.8 24.3 18.9 38 39 1- to 4-family mtgs..................... 12.9 14.8 16.0 15.8 13.5 15.3 15.5 15.2 15.9 16,7 15.0 14.1 13.4 11.4 39 40 Other mortgages......................... .9 .9 .9 1.1 1.2 1.0 1.0 1.1 1.1 1.1 1.2 1.2 1.2 1,3 40 41 Consumer credit.......................... 5.5 7.3 8.0 9.4 6.9 7.2 10.0 9.6 9.3 8.9 9.2 7.0 6.9 4.6 41 42 Bank loans n.e.c........................ .4 1.4 1.3 -.2 3.1 .6 1.4 1.3 1.9 -1.4 .8 .3 -.4 42 43 Other loans 6................................ .7 .6 .8 .8 1.8 .7 .8 .9 .9 .7 1,0 1.6 2.5 2.0 43 44 Security credit................................... -.1 2.0 -.2 .8 -.1 -.5 -.1 .7 . 1 2.8 .6 1.2 -2.0 -.3 44 45 Discrepancy (12 — 13)............................. -1.5 -1.5 -2.5 -2.7 -2.2 -9. 1 1.2 -6.2 -3.5 -2.3 .2 -1.5 -3.1 -4,3 45 For notes see p. 859. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

854 FLOW OF FUNDS MAY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1962 1963 1964 1965 1966 IV I H III IV I n in IV (B) Nonfinancial business—Total 1 i Income before taxes 2...................... 102.4 106.9 114.6 125.7 132.8 115.1 122.2 124.2 126.5 130.0 133.7 132.5 131.0 133.9 I 2 Gross saving................................................ 55.0 57.3 65.3 70.4 74.4 66.1 69.9 69.5 70,6 71.5 73.1 73.3 73.7 77.4 2 3 Gross Investment...................................... 53.3 57.2 62,0 69.7 71.8 62.1 72.9 66,2 69,2 70.4 69.9 71.8 72.1 73.4 3 4 Capital expenditures............ 60.4 63.8 68.9 82.1 92,5 73.2 80.0 79.6 82.3 86.5 89.0 93.2 90.5 97.2 4 5 Fixed investment................................... 54.4 57.9 64.2 73.0 80,6 65.8 70.5 71.9 73.5 16.1 80.0 80,9 80. 5 80.8 5 6 Business plant & equipment. . . 47.8 49.9 56.2 64.7 74.1 58.7 61.7 62.8 65.3 69.2 71.3 72.8 75.6 76.8 6 7 1-4 family residential const.3... .7 1.0 .2 .8 -.7 * .6 .9 1.7 -.2 .5 .3 -1.3 -2.2 7 8 Other residential.................. 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 6.3 8 9 Change in inventories 4.................... 6.0 5.9 4.7 9.1 11.9 7.4 9.5 7.7 8.8 10.4 9.0 12.3 9.9 16.4 9 10 Net financial investment. ....................... -7.1 -6.5 -6.9 -12.4 -20.7 -11.1 -7.1 -13.4 13.1 -16.1 -19.1-21.5-18.3 — 23.8 10 11 Net acquis, of finan. assets................ 17.5 19.8 15.8 26.3 21.3 10.8 33,0 21,8 22.6 27.9 27.4 30.0 15.0 13.0 11 12 Net increase in liabilities . 24.6 26.4 22.7 38.8 42.0 21.9 40,0 35.2 35. 7 44.0 46,4 51.4 33,3 36 8 12 13 Credit mkt. instruments....... 18.2 19.1 22.2 29.7 33.1 22.8 27.7 31.8 29.1 30.0 36.3 45.2 25.1 25.0 13 14 Securities......................................... 5.1 3.6 5.4 5.4 11.4 3.1 4.4 7 0 7.4 2 9 11.9 15.2 11 7 6.9 14 15 1-4 family mortgages................. .4 -.3 .2 -1.0 1 .4 .3 .3 -.2 .3 - . 1 -2.2 -1.9 15 16 Other mortgages.......................... 7.0 8.4 9.0 8.4 7.3 9.5 7.7 8.7 8.7 8.4 8.8 8.4 7.2 4.7 16 17 Bank loans n.e.c........................... 4.3 5.0 5.1 12.3 11.0 8.3 13.5 11.0 9.9 14.8 10.5 16.5 7.6 9.2 17 18 Other loans 7................................ 1.7 1.8 3.0 3.4 4.4 2.0 1.7 4.9 2.8 4.2 4.9 5.3 1.3 6.1 18 19 Trade debt........................................... 5.5 7.0 4.3 8.6 9.6 5.7 10.1 6.6 7.7 10.2 9.2 13.9 6.7 8.5 19 20 Other liabilities................................. .9 .2 -3.9 .5 -.6 -6.7 2.2 -3.2 -1.0 3.8 1.0 — 1.1 1.0 3.2 20 21 Discrepancy................................................... 1.6 .1 3.3 .7 2.6 4.0 -3.1 3,3 1.4 1.1 3.2 1.5 1.5 4.0 21 (C) Farm and noncorporate nonfinancial business s 1 Net income 2.............................................. 57.5 58.4 59.5 63.7 65.9 59.9 61.2 63.8 64.6 65.2 66.5 66.1 65.5 65.8 1 2 Gross saving 6............................................. 13.1 13.5 14,4 15.0 15.6 14.8 14.9 15.0 15 1 15.2 15.3 15.5 15 7 16.0 2 3 Gross investment........................................ 13,1 13.5 14.4 15.0 15.6 14.8 14.9 15.0 15.1 15.2 15.3 15.5 15 7 16.0 3 4 Capital expenditures.................... 15.7 17.1 16.6 20.2 19.2 16.6 19.8 19.8 19.8 21.1 20.4 19.9 16.7 20.0 4 5 Fixed investment................................... 14,4 15.6 16.4 17.9 18.2 16. 3 17.5 17.8 18.1 18.1 18.9 18.6 17.4 18. i 5 6 Change in inventories 4.................... 1.3 1.5 .2 2.3 1.0 .2 2.3 2.0 1.7 3.0 1.5 1.3 — .6 1.9 6 7 Net financial investment.......................... -2.6 -3.6 -2. 2 -5.1 -3.6 -1.8 -4.9 -4.8 — 4.7 -5.9 -5.1 — 4.4 —1.0 — 4.0 7 8 Net acquis, of finan. assets................ .5 . 7 .8 .9 1.0 . 7 1.0 .8 . 7 1.1 1.0 .8 .8 1.4 8 9 Net increase in liabilities 7............... 3.1 4.3 3.1 6.0 4.6 2.5 5.9 5.6 5.5 7.1 6.0 5.2 1.8 5.4 9 10 Credit mkt, instruments.............. 7.0 8,6 8,6 10.4 9.8 7.9 10.4 10,6 9.7 10.9 12.5 10,0 7.6 9.2 10 11 Mortgages....................................... 4.2 5.2 5.4 5.4 4.2 5.8 5.1 5.5 5.6 5.3 5.7 5.2 3.6 2.3 i i 12 Bank loans n.e.c........................... 1.8 2.1 1.5 3.0 3.3 1.3 3.6 2.2 2.4 3.5 4.2 2.0 2.9 4.1 12 13 Other loans 7,8. . .......... 1.0 1.3 1.7 2.1 2.3 .8 1.7 2.9 1.7 2.1 2.6 2.8 1.1 2.7 13 14 Trade debt, net.'............................... 1.0 1. 1 1.0 1.4 1.9 .4 1.5 1.0 1.4 1.5 1.0 2.6 1.3 2.6 14 15 Proprietors’ net investment 9... -4.9 -5.3 -6.6 -5.8 -7.1 -5.8 -6.1 -6.0 -5.7 -5.4 -7.4 -7.4 -7.1 -6.4 15 (D) Corporate nonfinancial business *0 1 Profits +IVA................................................ 44.9 48.6 55.1 62.0 66.8 55,2 61,0 60 4 61.9 64.8 67.2 66.5 65.5 68.1 1 2 Profits tax accruals................................... 20.8 22.8 24.2 27.4 29.7 24.4 27.1 27.0 27.1 28.5 30.1 29.9 29.5 29.3 2 3 Net dividend payments it.................... 11.4 12.7 12.8 14.4 16.0 13'2 13,0 13.7 14.9 16.0 15.9 16.0 16.0 16.0 3 4 Net savings*bIVA (1-2-3),......... 12.6 13.1 18.1 20.2 21.2 17.6 20.9 19.7 19,9 20.3 21.2 20.5 20.0 23.0 4 5 Capital consumption................................ 29.2 30. 8 32.8 35. 1 37.5 33.7 34.1 34,8 35.6 36.1 36.6 37.3 37.9 38.5 5 6 Current surp.= gross saving (44-5).. 41.8 43.9 50.8 55.3 58.7 51.3 55.0 54.5 55.5 56.4 57.7 57.8 57.9 61.4 6 7 Gross investment...................................... 40.2 43.8 47.5 54.6 56.2 47 4 58 0 51 2 54.1 55 2 54.6 56.2 56.4 57 4 7 8 Capital expenditures............. 44.7 46.7 52.2 61.9 73.2 56.7 60.2 59.8 62.5 65.4 68.6 73.3 73.7 77.3 8 9 Fixed investment................................... 40,0 42.3 47.8 55.1 62.3 49.5 53.0 54.1 55.5 58.0 61.1 62.3 63.2 62.7 9 10 Plant and equipment...................... 37.0 38,6 44.1 51.3 59.4 46.2 48.8 49.8 51 6 54.8 57.0 58.5 60.9 61.0 10 11 Residential construction............... 3.0 3.7 3.7 3.9 2.9 3.3 4.2 4,3 3.8 3.2 4.0 3.8 2.2 1.7 11 12 Change in inventories 4.................... 4.7 4. 3 4.4 6.8 10.9 7.2 7.2 5.6 7.0 7.4 7.5 11.1 10.6 14.5 12 13 Net financial investment.......................... -4.5 -2.9 -4.7 -7.3 -17.1 -9.3 — 2.1 — 8.6 -8.3 -10.2 14.0-17.1 -17.3 -19.8 13 14 Net acquis, of finan. assets.............. 16.9 19.1 14.9 25.4 20.3 10.1 32.0 21.1 21.9 26.8 26.4 29.1 14.2 11.6 14 15 Liquid assets....................................... 4 1 4 3 .6 1.1 — 8.5 4 4 —1.7 4 — 1 10.5 2.2 -2.6 -5.5 15 16 Demand dep, and curr............. - .9 -.8 -2.5 -1.9 .7 — 8.7 ^6 -3.1 -4.5 -.6 4.0 1.6 — .1 -2.0 16 17 Time deposits............................. 3.7 3 9 3 2 3 9 — .7 3.4 6 4 5.7 2.5 9 4. i 1.7 -3.9 -4.6 17 18 U.S. Govt, securities................. .5 . 5 -1.4 -2.1 -1.2 -4.0 -2.1 -5.0 . 1 -1.3 -.2 -2.1 — 1.0 -1.3 18 19 Open-market paper.................... .9 .7 1.5 ,7 2.3 8 — .5 .8 2 3 .3 2.7 1.0 3.0 2.4 19 20 State and local oblig....................... - .4 ,9 .2 .7 .8 3 .6 ,7 8 8 .8 .8 .7 .8 20 21 Consumer credit............... .9 .7 1.0 1 2 1.1 1.1 1 7 .6 1.0 1.3 2.5 1.0 .8 —, 1 21 22 Trade credit....................................... 8.2 8 5 9 1 13.7 10.9 10.2 16.2 11 3 10 3 16 8 10.7 16.8 9.0 7.0 22 23 Other financial assets 12............... 4.1 4. 8 4.0 9. 3 6.5 7.1 9.0 10.1 9.4 8.6 1.9 8.4 6.2 9.4 23 24 Net increase in liabilities.................. 21.5 22.0 19.7 32.7 37.4 19.4 34.1 29.6 30.3 37.0 40.4 46.2 31.5 31.4 24 25 Credit mkt. instruments....... 11.2 10.5 13.6 19.2 23.2 15 0 17.3 21.2 19.4 19 2 23.8 35.2 18.1 15.8 25 26 Corporate bonds......................... 4.6 3.9 4.0 5.4 10.2 4.6 4.4 5.3 7.9 3.9 12.4 9.3 10.8 8.4 26 27 Corporate stock........................... .6 - .3 1.4 1.2 -1.5 * 1.6 - .5 -1.0 — .5 5.9 ,9 -1.5 27 28 Mortgages........................................ 2.9 3.5 3.3 3.2 2.1 3.6 3 0 3.4 3.4 2.9 3.4 3.1 1.4 . 5 28 29 Bank loans n.e.c................. 2.5 2.9 3.6 9 3 1.1 7 0 9 8 8.8 7.4 11.3 6.3 14.5 4.8 5.1 29 30 Other loans 13................................ .7 .5 1.3 1.3 2.1 1.2 2.0 1.2 2.1 2.3 2.5 .2 3.4 30 31 Profits tax liability14..................... 1.1 1.5 9 2 0 - .4 .7 3 3 — 1.9 1.9 4.7 2.6 -7.5 2.8 .7 31 32 Trade debt........................................... 4.4 6.0 3.4 7.3 7.7 5.3 8.6 5.6 6.3 8.6 8.2 11.4 5.3 5.9 32 33 Other liabilities................................. 4.7 4.0 1 8 4.2 6.8 -1.5 5 0 4.7 2.8 4,5 5.8 7.2 5.3 9.0 33 34 Discrepancy......................................... 1.6 . 1 3 3 .7 2.6 4 0 — 3.1 3.3 1.4 1.1 3.2 1.5 1.5 4.0 34 35 Memo: Net trade credit........................ 3.7 2.5 5 7 6 4 3.2 4.9 7 7 5.7 4.1 8.2 2.5 5.4 3.7 1.1 35 36 Profits tax paymentsis............................ 20.0 20.8 23.5 25.8 30.8 23.4 23.7 28.1 25,9 25.3 27.1 40.1 28.3 27.8 36 For notes see p. 859. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FLOW OF FUNDS 855 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1962 1963 1964 1965 1966 I j II IV I n in IV in IV (E) U.S, Government 1 1 Tax receipts (net of refunds)............... 85.9 91,4 91.2 100.2 109.6 92.9 99.6 100.4 99.0 101.7 104.3 108.7 111.7 113.6 1 2 Individual income................................. 48.6 51.5 48,6 54.2 61.9 49.6 53.4 54.9 53.9 54.7 57.1 60.7 63.9 65.7 2 3 Corp, profits tax accruals................. 22.7 24.6 26.5 29.1 31.7 26,7 28 7 28.7 28,9 30.3 31.9 31.9 31.6 31.4 3 4 Other......................................................... 14,6 15.3 16.2 16.8 16.0 16.5 17.5 16.8 16.3 16.7 15.2 16.1 16.2 16.4 4 Social insurance programs 2 5 Premiums received.......................... 18.5 21,0 21.7 22.4 30.5 22.1 22.2 22.3 22.4 22.8 29.3 29.8 31.1 31.8 5 6 Benefits paid....................... .................. 17.4 18.2 18.7 20.3 22.4 18.8 19.2 18.9 22.6 20.7 21.5 21.4 23.1 23.6 6 Life insur. & retirement programs J 7 Premiums received.......................... 2.1 2.1 2.2 2.3 2.4 2.3 2.3 2.3 2.4 2.4 2.4 2.4 2,4 2.5 7 8 Benefits paid........................................... 2.9 3.2 3.2 3,3 3.9 3.0 3.9 3.1 3.1 3.2 3.8 3.8 4.0 4.2 8 9 Net grants and donations paid 4.... 19.4 20.5 22.8 24.1 29.4 23.4 23.5 24.3 24.2 24.5 27.2 28.5 30.0 31.9 9 10 Net interest paid .............................. 7.2 7.7 8.3 8.7 9.6 8.4 8.6 8.7 8.8 8.8 9.3 9.5 9.7 10.0 10 11 Net purchases of goods & services.. 63.4 64,2 65.2 66.8 76.7 64.1 64.4 65,6 67.5 69.8 71.9 74.0 79.0 81.7 11 12 Net surplus............................................... -3.8 .7 -3.0 1.6 .5 -.4 4.5 4.4 -2.5 -.2 2.3 3.8 -.5 -3.6 12 13 Insurance and retirement credits 5.. 1.1 1.3 1.4 1.4 1.4 1.3 1.3 1.8 1.6 1.0 1.1 1.8 1.2 1.3 13 14 Gross saving................................................. -4.8 -.6 -4.3 .2 -.8 -1.6 3.2 2.7 -4.0 -1.1 1.2 2.1 -1.7 -4.8 14 15 Net finan. investment (16 — 23)............ -4.7 -1.3 -2.9 -1.3 -1.1 -1.4 2.0 .6 -6.4 -1.4 -2.2 4.4 -4.4 -2.3 15 16 Net acquis, of finan. assets............... 4.7 4.7 5.2 4.3 7.8 5.0 11.8 4.5 -8.0 9,0 12.8 10.3 4.9 3.1 16 17 Demand deposits & currency... 1.0 -.4 .6 -1.4 -.1 -1.1 5.9 -2.5 — 11.4 2.3 -3.5 10.7 -4.2 -3.4 17 18 Credit market instruments..... 3.3 2.7 3.8 4.7 7.5 3.6 5.3 6.4 3.1 3.9 11.3 10.0 6.6 t.9 18 19 Mortgages.......................... .3 -1.0 .3 1.0 3.4 -.2 .7 1.0 .7 1.5 4.6 4.1 3.0 1.9 19 20 Other loans.................................... 3.0 3.7 3.5 3.7 4.0 3.7 4.7 5.4 2.4 2.4 6.8 5.9 3.5 * 20 21 Excess of tax accruals over receipts....................................... .8 1.8 1.1 1.0 -1.1 1.6 1.8 — 1.6 1.0 2.9 2.6 -10.6 1.2 2.4 21 22 Other financial assets ^........ -.5 ,6 -.3 * 1.5 .9 -1.3 2.3 -.7 — ,2 2.3 .2 1.4 2.1 22 23 Net increase in liabilities.................... 9.3 6.0 8.1 5.6 8.9 6.4 9.8 3.9 -1.6 10.3 15.0 5.9 9.3 5.4 23 24 Life insurance and retirement reserves........................................ l.l 1.3 1.4 1.4 1.4 1.3 1.3 1.8 1.6 1.0 1.1 1.8 1.2 1.3 24 25 U.S. Govt, securities 2............... 7.9 5.0 7.1 3.5 6.7 4.6 9.0 1.4 -4.5 8,2 14.9 2.8 7.0 2.2 25 26 Svgs. bonds 8............................... .4 1.2 .9 .6 .6 1.0 .8 .4 .5 .8 .3 .7 .3 .9 26 27 Short-term marketable 9 . .. . .7 1.4 4.0 3.5 2.2 8.7 5.5 3.6 -3.5 8.3 1.3 -12.7 6.3 14.1 27 28 Other direct................................... 4,8 1.1 .9 -2.9 -1.4 -8.3 2.3 -7.2 -5.3 — 1.4 7.9 -2.4 1.4 -12.6 28 29 Nonguaranteed agency issues 1.6 1.5 .4 1.9 3.9 .6 .5 4.8 1.9 .5 3.8 10.3 1.2 .2 29 30 Loan participations............ .5 -.2 .8 .4 1.5 2.5 -.3 1.9 1.6 6.9 -2.2 -.2 30 31 Other liabilities........................ .3 -.3 -.4 .6 .8 .6 -.5 .7 1.3 1.1 -1.0 1.3 1.1 1.9 31 32 Discrepancy (14 — 15)............................... — .2 .7 -1.4 1.5 .4 -.3 1.2 2.0 2.4 .3 3.5 -2.3 2.8 -2.5 32 33 Memo: Corp, tax receipts, net........... 21.9 22.8 25.3 28.1 32.8 25.1 26.9 30.3 27.9 27.4 29.2 42.5 30.4 29.0 33 (F) State and local governments to 1 Tax receipts.................................................. 47.1 50.5 55.0 59.7 65.0 56.8 58.1 59.1 60.3 61.1 62.4 63.8 65.7 68.0 1 2 Social ins and grants rec...................... 11.5 12 9 14 5 15.6 19.3 15.2 15.4 15 5 15,6 16 I 17.7 19.4 20.2 20.0 2 3 Purch. of goods and services............... 53.7 58.2 63.7 69.4 76.2 65.3 67.3 68.7 70.2 71.4 73.1 75.0 77.2 79.4 3 4 Net interest & transfers paid 11.... 3.9 4.0 4.2 4.3 4.9 4.2 4,3 4.2 4.2 4.3 4.6 4.7 4.9 5.3 4 5 Net surplus................................................... ,9 1.2 1.7 1.6 3.2 2.5 1.9 1.7 1.5 1.5 2.4 3.5 3.8 3.2 5 6 Less retirement credit to households 2.4 2.7 3.1 2.6 2.7 3.0 2.8 2.6 2.5 2.6 2.6 2.6 2.7 2.7 6 7 Equals: Gross saving............. -1.4 - 1.5 -1.4 -1.0 .6 -.5 -.9 -.9 -1.0 -1.1 -.2 .9 1.1 .5 7 8 Net financial investment (9 —17).... -2,5 -2.1 -2.5 -1.5 ,7 -1.4 -1.5 -1.6 -1.4 -1.7 1.0 .5 .3 .9 8 9 Net acquis, of finan. assets. ...... 5,6 7 7 6.9 9 0 10 0 7 9 7 8 10 3 8.3 9 4 9.4 11.1 9.4 10.3 9 10 Liquid assets...................................... 2.5 4.1 2.6 45 3.3 2.9 2 8 6 7 4 7 3 8 4.4 2.8 3.8 2.1 10 11 Demand deposits and cur..,. .9 2.4 1.4 1.0 1.3 3.3 -4.5 4.6 3.2 “’7 1.4 3.1 .6 .9 11 12 Time deposits............................... 1.0 1.6 1.7 2,4 1.4 2.7 1.9 1.1 3.1 3.3 — .3 2.3 1.9 1.9 12 13 Short-term U.S. Govt. sec... .6 .1 -.5 1.1 .3 -3.0 5.4 .9 -1.6 -.2 3.3 -2.5 1.3 -.6 13 14 Other U.S. Govt, securities.... .6 .6 1.0 1.3 1.1 1.8 1.7 1.4 * 2.2 .9 3.2 14 15 State and local obligations......... -.7 -.7 -.6 -.6 -.4 -.6 -,6 -.8 -.6 -.5 -.4 -.4 -.4 -.4 15 16 Other 12.............................................. 3.1 3.5 3.7 3.7 6.0 3.8 3.5 2.7 4.3 4.2 5.0 7.4 6.1 5.6 16 17 Net increase in liabilities......... 8.1 9.8 9.4 10.5 9.4 9.3 9.5 11.9 9.8 11.1 8.5 10.5 9.1 9.4 17 18 Credit market borrowing...... 5.6 7.0 6.2 7.8 6.6 6.3 6.4 9.2 7.2 8.4 5.8 7.8 6.3 6.6 18 19 State and local obligations... 5.0 6.7 5.9 7.4 5.9 5.8 6.1 8.6 6.8 8.1 5.4 7.2 4.8 6.2 19 20 Short-term..................... .4 .5 .7 1.3 .4 .2 .4 1.4 2.4 1.0 .6 1.1 -.3 .3 20 21 Other............................................ 4.6 6.2 5.1 6.1 5.5 5.6 5.7 7.2 4.4 7.1 4.8 6.1 5.0 5.9 21 22 U.S, Govt, loans........................ .6 .3 ,4 .4 .7 .5 ,4 .6 .4 .3 .4 .6 1.6 .4 22 23 Employee retirement reserves. . 2.4 2.7 3.1 2.6 2.7 3.0 2,8 2.6 2,5 2.6 2.6 2.6 2.7 2.7 23 24 Trade debt........................................... . 1 J .1 .1 . 1 . 1 .1 .1 .1 .1 , 1 .1 24 25 Discrepancy.................................................. 1.0 .6 1.1 .6 —. 1 .9 .6 .7 .4 .6 -1.2 .3 .8 -.4 25 26 Memo: Total U.S. Govt, sec............ 1.2 .7 .5 2.5 1.4 -1.2 7.i 2.3 -1.6 2.0 3.4 -1.6 1.3 2.5 26 For notes see p. 859, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

856 FLOW OF FUNDS MAY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (in billions of dollars) 1964 1965 1966 Category 1962 1963 1964 1965 1966 IV I II in IV I II III IV (G) Monetary authorities1 I Current surplus........................................... . 1 . I -.5 * . 1 -.5 ♦ * ♦ ’ * * * .2 .1 2 Net acquis, of financial assets.............. 1.7 2.2 3.4 2.3 4.2 5.2 2.7 2.5 4.4 -.6 S.I 2.5 6.8 2.6 2 3 Gold and foreign exchange2........... -.8 -.4 — 1.3 -.3 .2 -3.0 -2.2 1.3 -1.4 -2. I .2 .4 . 1 3 4 Treasury currency........................... -.2 .2 .7 -.6 -. I .3 .4 .7 I .0 ,5 .8 4 5 Credit mkt. instruments.................... 2.0 2.9 3.4 3.8 3.5 3.8 6.0 3.8 4.3 1.2 2.1 2. 1 6.0 3.7 5 6 U.S. Govt, securities..................... 1,9 2.8 3.5 3.7 3.5 3.7 5.9 4.2 4.3 .5 2,4 1.8 6.8 3.1 6 7 Short-term marketable............. 2.0 4.9 2. 1 3.7 5.4 3.5 12,4 6.2 -.3 -3.6 5.2 -3.5 6,9 13.0 7 8 Other.................................................. -.1 -2.2 1,3 . 1 — 1.9 .2 -6.5 -2.0 4.6 4. 1 -2.8 5.3 -. 1 -9.9 8 9 F.R. float.................................................. .6 -.3 * -.4 .3 .6 -.8 -.2 1.0 -1.5 3.6 -.5 -1.7 -.4 9 10 F.R. loam to domestic banks.... - . 1 * .1 -.1 , 1 I. I .5 1.0 -2.5 .8 .8 -.3 1.5 -1.7 10 11 Net increase in liabilities.................. 1.6 2.1 3.8 2.2 4.1 5.7 2.6 2.5 4.4 -.6 5.1 2.4 6.6 2.4 11 12 Member bank reserves....................... .1 -.4 1.0 .4 1.3 3.1 ,9 .5 -. 1 -.5 5.7 .3 12 13 Vault cash of coml. banks3............. .7 .6 -.4 .3 .5 -2.7 2. 1 .5 -.6 -.8 .9 -.3 .2 1.5 13 Demand deposits and currency,,. 14 Due to U.S. Govt........................... . 1 .3 .2 * .2 .4 .2 -.3 1.2 -1.2 -.4 2.0 -.3 -.7 14 15 Due to rest of the world4........... -.1 -.1 .2 .4 -.3 .1 -.2 1.3 -.5 * 15 16 Currency outside banks............... .8 1.7 2.4 2.1 2.0 3.6 .7 1.8 4.0 2.0 3,5 1.3 1.9 1.4 16 17 Other............................................................ * ♦ .6 -.5 -.2 .8 -.3 -.4 -.3 -1.0 -.2 * -.4 -.2 17 (H) Commercial banks5 1 Current surplus.......................................... 1.5 1.7 2.0 2.1 2.3 2.2 2.0 1.9 2.0 2,4 2,2 2.3 2.1 2.8 1 2 Net acquisition of financial assets. .. 20.7 20.0 23.4 30.2 20.9 28.5 34.8 24.3 16.7 45.2 20.1 38.1 14.4 11.0 2 3 Member bank reserves 6.................... -.4 1.0 .4 1.3 3.1 .9 ,5 -.1 -.5 5,7 .3 3 4 Vault cash.................................................. .7 .6 -.4 .3 .5 -2.7 2.1 .5 - .6 - ,8 .9 -.3 .2 1.5 4 5 Total loans and investments........... 19.5 19.4 22.2 29.1 18.3 28.0 31.3 22.7 18.3 43.9 18.3 37.1 8.4 9.5 5 6 Credit market instruments.......... 18.4 18.8 21.8 29.0 18.4 28.9 28.9 21.5 27,0 38.5 19.9 35.7 7.4 10.8 6 7 U.S. Govt, securities’....... 1 .4 -2.6 .4 -2.3 -2.8 1.7 -2.6 -10.2 -1.7 5.3 — 1.9 ,5 -5.7 -4.2 7 8 Short-term marketable. . . . -5.2 -3.5 3.9 -1.7 -4.6 8.5 -10.6 -5.7 2.4 7.2 -10.7 -4.9 -2.9 8 9 Other direct.............................. 5.2 .5 -4.1 -1.4 1.0 -9.3 7.9 -5.3 -6.1 -2.3 8.3 -.9 -2.0 -1.6 9 10 Agency issues............. .9 .5 ♦ 1.2 . 1 .8 1.1 1.9 1.7 -1.0 2.8 - 1.7 .3 10 11 Loan participations....... .5 - .2 .6 -.4 .7 1.6 * -.3 . I -1.3 1.5 3.5 -2. 1 * 11 12 Other securities & mortgages. 8.3 10.1 8.1 10.5 6.8 8.8 9.6 12.1 10.5 9.9 8.7 10.3 6.2 1.9 12 13 State and local oblig............ 4.4 5.2 3.5 5.0 1.8 4.3 4.9 6.4 4.2 4.5 3.4 5.0 1.2 -2.5 13 14 Corporate bonds.................... ♦ . 1 -. 1 - . I . ! . 1 -.2 -.4 * * * 14 15 1- to 4-family mortgages., . 2.0 2.7 2.3 3.1 2.6 2.2 2.5 2.8 3.7 3.4 2.6 2.9 2.7 2.3 15 16 Other mortgages.............. 1.9 2.2 2.2 2.5 2.4 2.4 2.1 2.8 2.7 2.4 2.8 2.4 2,3 2.2 16 17 Other credit exc. security.... 8.7 11.3 13.3 20.7 14.5 18.4 21.9 19.6 18.2 23.2 13.2 24.9 6.9 13.0 17 18 Consumer credit.................... 2.3 3.5 3.8 4.7 3.1 3.6 4.3 4.9 5. 1 4.6 3.5 3.1 3.4 2.4 18 19 Bank Ioans n.e.c...................... 6.2 7.6 8.7 16.4 9.4 13.6 19.3 13.9 12.9 19.4 8.0 21.3 2.4 6.1 19 20 Other loans 8............................ .2 .2 .8 -.4 1.9 1.2 -1.6 .7 -.8 1.6 .5 1.1 4.5 20 21 Security credit.................................... 1.1 .6 .5 .1 -.1 -.9 2.4 1.2 -8.7 5.5 -1.6 1.3 1 . 1 -1.2 21 22 Mise, assets.............................................. .5 .4 .6 .5 .6 . 1 1.3 .2 -l.l 1.5 .9 1.8 -.3 22 23 Net increase in liabilities......................... 19.8 19.3 22.0 28.8 19.5 26.8 33.6 22.5 15.8 43.2 19.2 36.8 12.6 9.3 23 24 Demand deposits, net............. 3.7 3.8 4.8 5.6 5.9 7.0 -5.4 20,5 -8.0 10.8 -6.5 4.1 24 25 U.S. Govt. 9. ...................................... 1.2 -.6 -1.0 -.6 -1.9 5.0 -.6 -11.6 3.3 -4.7 6.9 -1.5 -3.3 25 26 Foreign I»............................................. ,1 .4 -.4 .7 -.4 -.6 .6 1.0 -1.3 1.2 -1.4 — .3 26 27 Other, net”............ ......................... 2.3 4.3 4.4 6.4 1.2 7. 1 2,4 1.3 5.6 16.3 -2.1 2.7 -3.6 7,7 27 28 Time deposits.......................................... 15.6 14.3 14.5 20.0 13.2 19.0 22.7 17.6 21.4 18.4 14.9 20.9 11.2 5.8 28 29 F.R. float.......................................... .6 -,3 -.4 .3 .6 -.8 -.2 1.0 -1.5 3.6 -.5 -1.7 -.4 29 30 Borrowing at F.R, Banks................. -.1 ♦ .1 -.1 l.l .5 1.0 -2.5 ,8 .8 -.3 1.5 -1.7 30 31 Other liabilities. . ................................. * 1.4 2.5 3.6 5.8 .2 4.2 4.1 1.3 4.9 7.8 5.9 8.1 1.5 31 32 Security issues.................................... .1 .3 .6 .8 .1 .4 .5 2.0 .1 .4 . 1 .3 32 33 Discrepancy........................................... .4 .5 .1 .3 .7 .1 .3 -.3 .8 .4 .7 .5 .3 1.1 33 34 Memo: Total loans exc, mortgages.. 9.8 11.9 13.8 20,8 14.4 17.5 24.3 20.8 9.5 28.7 11.6 26.2 8.0 11.8 34 ............ For notes seep. 859. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FLOW OF FUNDS 857 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1962 1963 1964 1965 1966 IV I II in IV I II IV (I) Nonbank financial institutions1 1 Current surplus. .................. 2.2 1.7 1.6 t.5 1.4 1.4 1.6 1.9 1.8 .7 .8 2.2 2.2 .4 1 2 Physical investment (Life ins.)..... .3 .5 .5 .5 .4 .5 .5 .5 .4 .4 .4 .4 .4 .4 2 3 Net acquis, of financial assets............... 32.6 37.0 37.0 37.7 30.1 36.0 38.3 41.3 29.9 41.3 39.0 28.2 22.3 31.0 3 4 Demand deposits and currency.., 1.1 .2 .3 .7 .3 .5 .5 .9 1.5 -1.4 .5 .7 1.6 4 5 Time deposits (Mut. svgs. bks.)... . 1 .2 .2 - .2 — .2 5 6 Svgs. and loan shares (Cr. unions) . 1 . 1 — .2 -.2 .2 -.5 -.4 -.2 .2 -.3 —. 4 -.3 6 7 Cr. mkt. instr.......................................... 30.7 33.7 35.7 35.6 28.9 34.2 38.1 39.6 27.8 37.1 38.9 26.6 22.2 27.8 7 8 U.S. Govt, securities...................... 1.6 -.5 2.0 -.8 .6 .6 2.2 -.8 -5.9 1.5 4.0 -4.3 4.4 -1.9 8 9 State and local obligations..... .9 .6 .2 .3 . 1 .4 .7 -1.1 -.3 1.1 -.8 1.1 9 10 Corporate bonds............................. 3.8 4.4 4.4 5.4 5.1 4.6 5.8 5.3 5. 1 5.6 8.2 4.6 2.9 4.9 10 11 Corporate stock................................ 4.2 3.4 3.7 5.3 5.2 4.6 4.1 6.0 4.3 7.0 3.7 6.2 3.5 7.5 11 12 1- to 4-family mortgages............. 11.0 14. 1 13.0 12.7 6.1 12.7 13.8 12.8 12.8 11.5 11.8 6.5 3.3 2.9 12 13 Other mortgages.............................. 5.7 6.9 7.3 6.4 5.1 7.9 6. 1 6.3 6.5 6.6 6. 1 5.9 5.2 3,5 13 14 Consumer credit.............................. 1.9 2.8 2.8 3. 1 2.3 2.2 3.5 3.7 2.9 2.5 2.7 2.6 2.5 1.6 14 15 Other loans......................................... 1.6 2.1 2.4 3.4 4.0 1.5 2.2 5.5 2.3 3.6 2,7 3.9 1.3 8.2 15 16 Security credit........................................ - .3 1.9 -.5 .2 -. 1 -.4 -.8 .4 -.3 1.6 .5 .4 -2.0 .7 16 17 Trade credit............................................. .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 17 18 Miscellaneous assets........................... .9 1.1 1.2 1.2 1.1 1.3 1.1 1.0 1.7 .9 l.t 1.1 1.4 .7 18 19 Net increase in liabilities....................... 30.5 35.5 36.3 36.3 30.1 35.4 35.9 39.7 29.1 40.7 38.5 29.5 19.3 32.9 19 20 Time and savings acct................... 13,1 IS.2 15.9 12.9 7.1 15.4 12.8 11.9 13.0 13.8 9.4 4.4 5.0 9.4 20 2! Ins. and pension reserves.................. 9.0 10.1 It. 1 11.6 12.8 11.9 10.9 12.0 12.0 11.7 12.9 11.2 13.5 13.4 21 22 Cr. mkt. instr.2,................................... 5.7 7. 1 6.1 9.0 6.9 5.4 8.0 10.5 9.4 8.2 12.5 9.3 1.7 4.3 22 23 Finance company bonds............. .3 1 .4 2. 1 1.9 .8 1.7 1.6 1.8 1.5 2.7 1.6 .3 1.9 -.8 23 24 Investment company shares.... 1.9 1.2 1.8 3. 1 4.0 2.6 2.6 2.3 3.5 4.2 5.3 3.3 3,8 3.6 24 25 Mtg. loans in process.................... .4 .5 -.3 - . 1 -.9 -.3 .2 -.2 -.2 .4 — 1. 1 -1.8 -1.2 25 26 Bank loans n.e.c.............................. 1.0 1.7 .5 2.4 - 1.2 2.3 2.6 1.3 3.3 -.4 3.4 -5.6 -2.3 26 27 Other loans............................. 2.0 2.3 2.0 1.7 4.3 1.3 1.5 3.7 3.3 -1.9 5.6 3.4 3.3 4.9 27 28 Finance co. paper...................... 1.2 1.0 1.5 1.0 3,4 .8 2.2 2.8 - 1.1 2.8 1.6 2.2 6.9 28 29 FHLB loans................................... .8 1.3 .5 .7 .9 .5 1.5 1.5 .5 -.8 2.8 1.8 1.1 -2.0 29 30 Security credit........................................ .9 .5 . 1 -.2 -1.3 1.3 2.3 -8.7 4.2 .3 2.2 -3.9 1.8 30 31 Taxes payable............................... . 1 . I -.3 .3 . 1 -.3 -. 1 .2 .8 31 32 Miscellaneous liabilities.................... 1.7 2.5 3.1 3.0 3.0 4.0 3.1 2.8 3.2 2.7 3.7 2.6 2.8 3.1 32 33 .Discrepancy,.............................................. -.2 -.3 .4 -.3 .9 .3 -1.2 -.2 .6 -.4 -.1 3.1 — 1.3 1.8 33 (1.1) Savings and loan associations 1 Net acquis, of financial assets........... 11.5 14.0 11.8 10.1 4.4 U.S 10.3 10.6 10.2 9.3 9.3 4.6 1.4 2.4 I 2 Demand deposits and currency 5, .6 . 1 ♦ -.5 -.2 -.2 . 5 -.1 - .6 - .4 -1.0 -.1 2 3 Cr. mkt. instr. 6..................................... 10.3 13,3 11.1 9.4 4.3 10.8 10.0 9.9 8.7 9.2 9.5 4.4 1.4 1.9 3 4 U.S. Govt, securities..................... .4 1.0 .6 . 5 .5 .8 1.0 .5 - .2 .6 1.2 -.8 .7 (.0 4 5 1 - to 4-family mortgages............. 7.4 9.3 8.0 7.6 3.3 7.3 7.9 7.6 7.4 7.3 7.5 4.3 .5 1.0 5 6 Other mortgages.............................. 2.6 2.9 2.4 1.3 .4 2.6 1.1 1.6 1.4 1.1 .9 .8 6 7 Misc. financial transactions............. .6 .5 .7 .6 .6 .8 .5 .6 I. 1 .3 ,4 .6 1.0 .6 7 8 Net increase in liabilities......................... 10.7 13.3 11.1 9.3 3.9 10.8 9.3 9.7 9.5 8.5 8.7 3.9 .8 2.1 8 9 Savings shares........................................ 9.4 11.1 10,6 8.4 3.6 10.1 8.2 7.6 8.7 9.1 5.8 2.5 1.4 4.7 9 10 Mtg. loans in process......................... .4 .5 -.3 -.1 -.9 -.3 .2 - .2 -.2 .4 -1.1 -1.8 -1.2 10 11 Borrowing from FHLB................... .8 1.3 .5 .7 .9 .5 1.5 1.5 .5 -.8 2.8 1.8 1.1 -2.0 11 12 Memo: FHLB loans less deposits... .8 1.4 .5 .8 .9 ,3 1.7 1.7 .4 -.5 3.1 1.8 1.4 -2.5 12 (1.2) Mutual savings banks 1 Net acquis, of financial assets 4. .. .. 3.3 3.6 4.5 4.0 2.8 4.1 4.1 4.0 4.3 3.6 2.9 1.4 3.7 3.0 2 U.S. Govt, securities........................... -.2 -.3 -.5 -.4 -.6 . 1 -.6 -.7 -.9 -.1 -.4 2 3 Corporate bonds................................... -. 1 -.3 -.2 -. 1 .2 -.5 - . 1 - . 1 -.3 .2 .3 .5 3 4 1- to 4-family mortgages.................. 2.1 2.6 2.7 2.7 1.7 2.9 2.6 2.5 2.8 2.8 1.8 1.1 1.9 1.9 4 5 Other mortgages................... 1.0 1.3 1.7 1.4 1.1 1.8 1.3 1.3 1.5 1.5 1.2 .9 1,1 1.1 5 6 Savings deposits.......................................... 3. 1 3.3 4.2 3.6 2.6 4.2 4.0 3.4 3.5 3.6 2.7 1.0 3.0 3.5 6 (L3) Life insurance companies 1 Current surplus........................................... 1.1 1.1 1.1 1.2 1.3 1.1 1.2 1.2 1.2 1.2 1.2 1.2 1.3 1.3 1 2 Net acquis, of financial assets 4......... 6.8 7.0 7.8 8.6 8.4 8.3 8.8 8.4 8.3 8.9 9.4 7.7 9.1 7.6 2 3 Cr. mkt. instr........................................... 6.5 6.7 7.4 8.1 8.0 7.8 8.4 8.0 8.0 8.1 9.8 7.4 8.5 6.5 3 4 U.S. Govt, securities...................... .1 -.4 -.3 -.4 -.3 -.6 .2 -.7 -.9 -.4 -.1 -.6 -.7 4 5 State and local obligations......... . 1 -.2 -. 1 -.3 -.4 -.2 -.2 -.2 -.4 -.3 -.5 -.6 -.2 -.2 5 6 Corporate bonds.............................. 2.5 2.8 2,3 2.7 2.3 2. 1 2.1 3.2 3.2 4.8 1.7 2.6 .3 6 7 Corporate stock....................... .4 .2 .5 .8 .2 .6 .6 .6 .8 1.2 . 1 .1 .2 .3 7 8 1- to 4-family mortgages............. .6 .9 1,4 1.2 1.1 1.6 1.7 1.0 1.0 1.0 1.5 1.3 1.1 .5 8 9 Other mortgages.............................. 2.1 2.7 3.2 3.7 3.6 3.5 3.6 3.5 3.6 3.9 3.9 4.1 3.9 2.4 9 10 Other loans......................................... .7 .5 .4 .5 1.5 .7 .4 1.7 .7 -.6 . 1 1.3 1.6 3.1 10 11 Net increase in liabilities......................... 6.0 6.4 7.1 7.9 8.0 7.1 7.6 7.9 8.0 7.9 7.9 7.9 8.2 8.1 11 12 Life insurance reserves....................... 3.6 4.0 4.2 4.7 4.6 4.0 4.5 4.7 4.7 4.6 4.6 4.5 4.7 4.6 12 13 Pension fund reserves................ 1.4 1.7 2.0 2.1 2.3 2.0 2.0 2. 1 2.1 2. 1 2.2 2.2 2.4 2.4 13 14 Other............................................................ 1.0 .7 .8 1.2 1.1 1.0 1.3 1.1 1.0 1.1 1.3 1.2 .9 .7 14 For notes see p. 859. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

858 FLOW OF FUNDS MAY 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1964 1965 1966 Category 1962 1963 1964 1965 1966 in IV I II IV I II III IV (1.4) Noninsured Pension Plans I Net acquis, of financial assets 4........... 4.0 4.4 4.9 4.9 5.9 5.9 4.4 5.2 5.1 5.0 6.1 4.5 6.4 6.4 I 2 Credit mkt, instr 7................................ 4.0 4.3 4.8 4.9 5.9 5.7 4.9 5.3 5.0 4.2 6.1 5.2 6.7 5.7 2 3 U.S. Govt, securities..................... .2 .4 .4 -.3 * 1.3 -.6 -.3 -.5 .4 -.4 .9 -1.0 3 4 Corporate bonds............................ 1.2 1.5 1.6 1.5 1.8 1.7 1.9 1.7 1.7 .7 2.5 1.3 1.6 1.9 4 5 Corporate stock................................ 2.2 2.2 2.2 3.1 3.7 2.2 3.1 3.0 3.3 3.2 2.8 4.0 3.8 4.1 5 (L5) Other insurance companies 1 Net acquis, of financial assets 4.......... 1.4 1.4 1.0 2.0 1.6 1.2 1.9 2.4 2.4 1.5 1.1 1.9 1.6 2.0 I 2 Demand deposits and currency... -.1 * -.1 -.1 -.1 * 2 3 Credit mkt. instr.................................... 1.2 1.3 .8 1.9 1.4 1.1 1.7 2.3 2.3 1.3 1.0 1.7 L3 1.7 3 4 U.S. Govt, securities...................... .2 ♦ -.4 .2 . 1 -.2 -.1 -.4 -.2 -.4 -.7 4 5 State and local obligations..... .7 .8 .2 .6 .7 .3 .5 .7 .7 .5 .7 .7 .7 .8 5 6 Corporate bonds............................. . 1 .4 1.1 .6 .6 .9 1.2 1.2 1.0 .8 .6 .4 .6 6 7 Corporate stock............................... .2 .2 .2 .2 .5 * .2 .5 .2 -.1 -.1 .5 .6 1.0 7 (1.6) Finance companies I Net acquis, of financial assets4.......... 2.7 4.0 4.0 5.4 3.2 2.2 4.9 6.5 4.5 5.6 4.6 3.4 .2 4.4 1 2 1- to 4-family mortgages.................. .5 .8 .4 .5 —. 6 .2 .9 .5 1.0 -.1 .4 ”.6 -.7 -1.3 2 3 Consumer credit.................................... 1.3 1.8 1.8 1.9 1.2 1.3 2.3 2.2 1.8 1.5 1.6 1.3 1.5 . 6 3 4 Other loans............................... .8 1.6 1.8 2.7 2.3 .6 1.5 3.7 1.5 4.0 2.4 2.6 - .8 4.9 4 5 Net increase in liabilities......................... 2.6 4.0 4.0 5.1 2.9 2.5 4.2 6.2 5.4 4.6 4.3 4.6 -1.3 3.8 5 6 Corporate bonds................................... .3 1.4 2.1 1.9 .8 1.7 1.6 1.8 1.5 2.7 1.6 .3 1.9 -.8 6 7 Bank loans n.e.c.................................... 1 .0 1.6 .4 2.2 -1.3 -.1 2.7 2.1 1.1 3.0 -.1 2.7 -5.5 -2.3 7 8 Open mkt. paper.................................. 1.2 1.0 1.5 1.0 3.4 .8 * 2.2 2.8 -1.1 2.8 1.6 2.2 6.9 8 (1.7) Security brokers and dealers 1 Net acquis, of financial assets............ .9 .6 .2 -.2 .2 -1.3 1.3 2.3 -8.6 4.3 .3 2.2 -3.8 2.0 1 2 U.S. Govt, securities........................... .7 -1.3 .7 ”.3 .7 -1.0 .9 1.4 -5.3 1.8 1.8 -1.0 2.1 -.3 2 3 Other securities..................................... .4 .2 -.4 -.4 .3 .4 .6 -2.8 -2.2 2.5 -4.2 2.2 3 4 Security credit....................................... -.2 1.5 -.5 ,5 -.2 -.6 -.1 .2 -.5 2.3 .6 .6 -1.8 -.1 4 5 Net incr. in liab.—security credit.... .9 .5 .1 -.2 .1 -1.3 1.3 2.3 ~8.7 4.2 .3 2.2 -3.9 1.8 5 6 7 8 C F F r r u o o s m m to m a b g e a e r n n k c c s r i e e .. s . d .. i . o t .. .. f b . .. a f . g . l . a . n .. n . . .. c . b . e . a .. s . n .. . . . k . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1 .2 .1 ♦ . . 2 4 .2 ♦ * - -. . 3 3 .3 -.1 . . 2 1 -1 -. . 5 . 0 2 - - 2 . . 7 . 4 5 1 . . . 4 8 1 -9. . . 3 2 4 - - 5 . . 2 . 0 7 - - 1 2 . . 1 . 6 0 - 1 .2 . . 7 7 -4 - 1 . . 3 . 9 3 -1 2 . . . 0 0 8 7 6 8 (1.8) Open-end investment companies -.4 -.4 -.8 -1.1 -1.5 -1.0 -.9 — .7 -.8 -2.0 -2.0 -.7 -.9 -2.4 1 2 Net acquis, of financial assets.... 1.5 .8 1.1 2.0 2.5 1.6 1.7 1.6 2.7 2.2 3.3 2.6 2.9 1.3 2 3 Credit mkt. instr............................. 1.2 .8 1.1 1.6 2.0 1.5 1.0 l.l 2.4 1.9 3.5 1.5 1.2 1.6 3 4 Corporate stocks.. 1.1 .6 .7 1.2 1.0 1.5 .1 1.6 1.1 1.9 1.7 .8 .3 1.1 4 5 Net stock issues J.................................. 1.9 1.2 1.8 3.1 4.0 2.6 2.6 2.3 3.5 4.2 5.3 3.3 3.8 3.6 5 (J) Rest of the world 1 Net purch. of goods and serv (2-3).. 5.1 5.9 8.5 7.0 4.8 8.6 6.5 8.2 7.1 6.1 6.1 4.6 4.2 4.1 1 2 Purch, of goods and services 1... 30.3 32.3 37.0 39.0 42.7 38.1 35.1 40.5 40,1 40.2 41.7 41.9 43.4 43.6 2 3 Sales of goods and services 1.......... 25.1 26.4 28.5 32.0 37.9 29.6 28.7 32.3 33.0 34.2 35.6 37.3 39.2 39.5 3 4 Net unilateral receipts from Govt.1. 2.7 2.8 2.8 2.8 3.0 2.7 2.6 3.1 2.9 2.6 3.4 2.9 3.1 2.6 4 5 Current surplus (4-1) ^..................... -2.5 -3.1 -5.7 -4.2 — 1.7 — 5.9 -3.8 -5.1 -4.2 — 3.5 -2.7 — 1.7 — 1.1 — 1.5 5 6 Net financial investment (7-14).......... -1.3 -2.8 -4.7 -3.7 -1.8 -4.5 -3.6 -4.6 -3.5 -3.2 -1.6 -1.8 -3.0 -.8 6 7 Net acquis, offinan. assets....... 2.6 3.4 3.4 2.0 3.6 7.6 3.7 1.8 1.2 1.2 1.4 6.2 2.4 4.5 7 8 Gold....................................... .9 .5 .1 1.7 .6 .7 3.3 2.4 .5 .5 .3 .8 .7 .5 8 9 U.S. dem. dep. and currency,., .1 .5 . 1 -.2 1.1 -.7 -.5 .7 .8 .1 1.2 -1.9 -.3 9 10 Time deposits..................................... .6 1.0 1.4 .6 .9 1.6 .8 .8 .2 . 5 -.2 2.0 .6 1.2 10 11 U.S. Govt, securities..................... 1.3 .6 .5 -.2 -2.6 1.7 -2.0 .9 -1.0 1.5 -2.6 -1.5 -4.0 -2.3 11 12 Other credit market instr...... .2 .3 .1 -. 1 1.1 -.4 1.3 -.7 -.8 -.1 .9 2.9 1.2 -.4 12 13 Mise, financial assets.............. -.4 1.1 .8 -.1 3.8 3.0 .9 -1.1 1.6 -2.0 2.8 .7 5.7 5.8 13 14 Net increase in liabilities......... 3.9 6.2 8.2 5.7 5.4 12.1 7.3 6.4 4.7 4.4 2.9 8.0 5.4 5.3 14 15 Official U.S. foreign exchange 3 -.6 .4 1.3 2.1 .3 -.6 -1.4 .6 .4 .5 15 16 Securities.............................................. 1.0 1.0 .7 .9 1.0 2.0 1.3 1.0 .7 .8 1.7 1.0 . 6 . 6 16 17 Loans 4.................................................. LI 2.2 3.7 1.9 1.0 4.4 4.3 1.1 .2 1.9 1,0 2.0 .2 .8 17 18 Miscellaneous 5................................. 2.5 2.8 3.9 2.6 4.0 4.4 2.2 2.7 3.3 2.3 2.1 5.0 4.9 3.8 18 19 Discrepancy (5—6) *................. -1.2 -.4 -1.0 -.4 .1 -1.4 -.2 -.5 -.7 -.3 -1.1 .2 (.9 -.7 19 U.S. gold and fgn. exchg. held by: 20 Monetary auth............................................ -.8 - .4 ♦ -1.3 -.3 .2 -3.0 -2.2 1.3 —1.4 -2.1 .2 .4 , 1 20 For notes see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 FLOW OF FUNDS 859 Notes to Table 4 (A) Households 1 Includes nonprofit organizations serving individuals. < 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 o 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 0 Policy Ioans, 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 2 Profits and noncorporate income as defined in national cos. income. Excludes imputed rental income of owner-occupied 0 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. * After inventory valuation adjustment. 11 Includes branch profits paid to foreign parents less branch e Includes corporate farms. profits received from abroad. 0 Noncorporate net income is treated as payment in full to 13 Direct investments abroad, foreign currency holdings, and proprietors in the household sector. Gross saving consists of unallocated current assets. capital consumption allowances plus corporate farm retained profits. m 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. 14 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. Lines 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 2 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 3 Marketable issues due in less than 1 year plus part of those tirement funds. Line 7 excludes Govt, contributions to these due in less than 2 years, funds. ‘Transfers other than lines 6 and 8, grants-in-aid to State 10 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. 804, 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. ® 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. s Includes consumer loans secured by hypothecated deposits 3 Includes vault cash of nonmember banks. not shown separately. 4 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. 6 Based on balance sheet estimates for last day of quarter. 11 Net of F.R. float, shown separately in line 29, (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. G Excludes deposits at FHLB, which are included in Miscel 3 Lines 10, II of 1.1; lines 6, 7, and 8 of L6; 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 in income and product accounts. rity credit. 2 Net foreign investment in national income accounts with 6 Direct investment abroad, foreign currencies held by other opposite sign. 3 Official foreign currency holdings and net IMF position of than in line 15, subscriptions to international organizations U.S. IMF position consists of U.S. capital subscription less except IMF, and unidentified liabilities. IMF holdings of special U.S, Govt, notes, deposits with Federal ® Errors and omissions in U.S. balance of payments state­ Reserve, and letters of credit. ment. Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1966 (Amounts outstanding io billions of dollars) (A) AU sectors Private domestic nonfinancial sectors Financial sectors Sector H h o o u ld se s ­ B n u e s ss i­ an S d t a lo te c al Total G U o .S v . t. Total Mo a n u e th ta . ry C ba o n m k l s . N fi o n o a b n a c n e k R w e t o h s r e t l d of se A ct H o rs Discrepancy govts. Transaction category A L A L A L A L A L A L A L A L A L A L A L 1 Total financial assets.................................................. 1409.8 . 338.5 .......... 93.6 . . 1841.9 , . 98.0......... 997,1 . . 67.3........... 357.0 572.8 85 9 - 3021 9 1 2 Total liabilities................................................... . 364.8 ....... 500.2 ........... 148.6 .........1013.7 ......... 318.8 ......... 920.3 . . 67.3 332 1 ......... 520.9 98.5 2351 3 2 3 Gold stock................................................................ 1 . . 13.2............ 13.2............ 30 0 43 2 3 4 Official U.S. fgn. exch......................................... .4........... .9 . .. .9........... 1 3 1 3 4 5 IMF position 1....................................................... 4.1 3.7 1 . . 1 .3 3 5 6 Treasury currency.................................................. . . .. 4 0 6 2 . §.2............ 6.2 4.0 -2.2............ 6 7 Demand dep. and currency............................. ............ 185.6 ........... 41.2 . , 144.3 172.8 185.6 7 8 Pvt. domestic...................................................... 89 7 ... 46 1........... 13.6........... 149.4 ........... 13.8 176.4 ............ 39.2 137 2 13 8 163.1 176.4 13.3............ 8 9 U.S. Govt............................................................... 7.0........... ............ 6 5 ........... 1.6 . 4 9 7.0 6.5 5 9 10 Foreign.......................................................... 2 6 . .4 ........... 2.2 2 6 2 6 10 11 Time and savings accounts............................... 297.1 _____ 329.3 ........... 4 338.2 4........... ............ 338 2 11 12 At coml. banks................................................... 118 4 18 6........... 13.6........... 150.6 . . . .2........... .2 159.3 • 159 3 2 . 8 2. .. 159 3 12 13 At svgs. instil....................... 178.7 ........... 178.7 ........... .2 178.9 .2 178.9 ............ 178 9 . 13 14 Life insur. reserves.............................................. 110 6........... 110 6........... ........... 7.1 ........... 103.5 ........... 103,5 .. 110 6 14 15 Pension fund reserves.......................................... 156.7 ............ ......... 35.5 156.7 35.5............ 21.0 ........ 166.2 .. 100 2 .. 156.7 15 16 Consol, bank items 2...................... 27.9 27.9 2.7 25.2 25 2 2-7 27.9 27.9 16 17 Credit mkt. instr..................................................... 736.0 349.8 50.4 306.0 64.8 110.1 851.1 765.8 60.2 279.0 895.7 83.6 44.5........... 316.6 1.7 534.6 81.9 27.9 39.31834.9 1167.7 ......................... 17 18 U.S. Govt- securities 3................................... 85 6 15 6 . 25,7............ 126 8 . .. - ............ 279.0 141 5 . .. 44 3 ........... 64 0 33.3........... 10 7........... ............ 279.0 .. 18 19 State and local oblig....................................... 40 6 .. 4 4.......... 4.6 105.9 49.6 105.9 56.3............ 40 2 .... 16 1........... ........... 105 9 . . 19 20 Corp and fgn. bonds................................... 3.8 108 0 30.9 34.8 108.0 99.0 18.6 8 1.7 98.2 16.9 ........... 135 9 .. 20 21 Corp, stocks 4..................................................... 595 4 92.1 34.3 92.1 34.3 13.2 n.a. 700 6 34.3 .. 21 22 1-4 family mortgages...................................... 10.5 217.5 ......... 6.5 3.6........... 14.1 224,0 8.9........... 202.3 1.3 .......................... 32.7.....1...6..9...6 1.3 ............ 225.3 ......................... 22 23 Other mortgages...............-............................. 14 8 ......... 79.3 ........... 94.1 6.9........... 87.1 . .. 21.6.......6...5...6........... ........... 94 1 ......................... 23 24 Consumer credit............. ................................ ......... 94 8 21,4............ 21.4 94 8 73.3............ 38.9 . .- 34.5........... ......... 94 8 ........................ 24 25 Rank loans n.e.c................................................ ... 11 6 83 5 .... 95 1 113.3 10 8 113 3 .. ........... 10 8 ......... 7.3 ............ 113.3 ......................... 25 26 Other loans.......................................................... ........... 11.0 9.0 28.7 ............ 4.2 9.0 43.9 44.4......... 30.8 18.6 .2............ 5.2.......2...5...5 18.6 1.9 22.7 86.1 85.2 -.9............ 26 27 Open market paper..................................... 9.0 2.8 9.0 2.8 23.9 11.7 .2........... 5.2 ............ .6 11.7 1.9 2.4 ........... 16.9 ........................ 27 28 Federal loans .............................................. 12 .... 11.1 ........... 4 2 ............ 16.5 43.7........... ......... 6.9 ........... 6.9 ........... 20.2 ........... 43.7 ......................... 28 29 Security credit......................................................... 16 9 1 16 9.1 15.2 7.8 8 4 .. 6.8 7.8 .2 .1 ... 17.0 .. 29 30 To brkrs. and dealers...................................... 1,6 ......... 1 6........... 6 0 7.8 5.1 .. .9 7.8 2....................... 7.8 ......................... 30 31 To others ........................................................... ........... 9 1 . 9.1 9 2............ 3.3........... 5 9........... ..........................1 ............ 9.2 ......................... 31 32 Taxes payable........................................................ 19 9 1 6........... 1.6 19.9 20 3 ............ 2 0 .........................7 ............ 1,2 21.9 21.9 ......................... 32 33 Trade credit.............................................................. ............ 2 5 156.8 *115.2............ 3 0 156.8 120.7 4 9 4 5 2.8........... 2.8........... 164.5 125.2—39.3........... 33 34 Misc. financial trans.............................................. 18.1 3.5 66.7 59.1 84.8 62.7 4.5 3.2 21.2 71.6.........................8 6.8 23.4 14.4 47.4 16.0 57.4 126.5 195.0 68.5............ 34 For notes see following page. 860 FLOW OF FUNDS MAY 5 ^ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1966—Continued (Amounts outstanding in billions of dollars) (B) Nonbank financial sector Sector Total M s b av a u n i t n u k g a s s l a S n a a d s v s i n I n o s g a . s n u C n r i e o d n i s t i a n L n s i c u fe e r ­ N i a n o n s n c u l e i r f ­ e p P e f r n u iv s n i a d o t s n e Fin co a s n . ce o A f b g f a e o n n re k c i i s g e n s B p a s o n i s o k s n e s s s i ­ n In m c v o e e s n s . t t s an S b d e r c o d u k e r e a i r t l y s e r s Transaction category A L A L A L A L A L A L A L A L A L A L A L A L 1 Total financial assets................................................. 572.8............ 61.0........... 133.9 ........... 10.0........... 160.9 ......... 41.8........ 70.6 45.0 . 3.8........... 1.7........... 34.3 . 0.9.......... 1 2 Total liabilities............................................................. .......... 520.9 56.1 . 124.6 . 10 0 150 0 23.1 70.6 . ... 39.1 ............ 3.8............ 1.5 34.3 ........... 7.9 2 3 Demand dep. and currency............................. ........................... 3 4 Pvt. domestic.................................................... 13.8 .7............ 2.3........... 6......... I 5 . 13... 9 - 2.9 .... .9........... .2........... 1.5............ 1.0............ 4 5 Time and savings accounts............................... .4 178.9 .2........... 2........... .......................... 5 6 At coml. banks.................................................. .2............ .2........... ...................... 6 7 At svgs. instit...................................................... .2 178.9 ............ 55.0............ 113.9 .2 10.0 ........................... 7 8 Lifeinsur. reserves...................... ............ 103.5 . - 103 5 ........................... 8 9 Pension fund reserves.......................................... ............ 100 2 ........... 29 6 . 70 6 ........................... 9 10 Credit mkt. instr.................................................... 534.6 81.9 59.1........... 124.2 8.7 9.2........... 153.4 ........... 37.6........... 69.7............ 42.1 38.9 2.1........... 1.5........... 32.8 34.3 3.0............ 10 11 U.S. Govt, securities....................................... 33.3............ 5 7... 8 6........... 4 8 - 5 5 3 5......... 1.8............ .1 1.4............ 1.7............ 11 12 State and local oblig................................ 16 1............ 3 ... 3 1 . 12 1 .5............ 12 13 Corp, and fgn. bonds.................. 98 2 16.9 3 2 63 3 3 9 24 5 ......... 16.9 ♦ 2.9 .... .4............ 13 14 Corp, stocks 4..................................................... 92.1 34.3 1 5........... 7 9 15 9 37.9 ... 28.4 34.3 .4............ 14 15 1-4 family mortgages...................................... 169.6 1.3 31.8........... 98.1 1.3 6........... 31 0 3.8 - 3.9............ .3........... ........................... 15 16 Other mortgages................................................ 65 6 .... 15.6 ...... 16 0........... 33 7 2........... .1........... ........................... 16 17 Consumer credit................................................ 34 5 . 4 1 5............ 8 5 24.0........... ........................... 17 18 Bank Ioans n.e.c................................................. ........... 10 8 .5 ......... 10.3 ........................... 18 19 Other loans........................ 25.5 18 6 6 ...... . . 6 9 9 5 14 2 11.7 .3............ .9............ 19 20 Open market paper..................................... .6 11.7 3 ........... 1L7 .3............ ........................... 20 21 Federal Ioans................................................. ........... 6.9 ........... 6 9 ........................... 21 22 Security credit........................ 6.8 7.8 9 5 9 7 8 22 23 To brkrs. and dealers.................... .9 7.8 .9......... ........... 7 8 23 24 To others............................................................... 5.9........... 5.9............ 24 25 Taxes payable....................................................... ............ 12 . 1 6 .......................2 .........................1 25 26 Trade credit..................................................... 2.8........... 2 8. .. ........................... 26 27 Mise, financial trans............................................. 14.4 47.4 9 11 7.4 1.9 6.1 16.2 22 9 .... 3 8 . .. 1.5 . 27 1 IMF position liabilities of the U.S. Govt. (IMF notes) and monetary authorities (deposits of IMF at investment companies. No specific liability is attributed to issuers of stocks other than open-end invest­ F.R. Bank of New York) are netted against assets in determining both the sector and transaction, totals. ment companies for amounts outstanding. 2 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. 5 Net of noncorporate trade credit assets. loans to banks, F.R. float, and stock at F.R. Banks. Note.—-For description of sectors and transaction categories, see Aug. 1959 Bulletin, pp. 846-57. 2 Includes savings bonds. Postal Savings System deposits are included in line 12. Details may not add to totals because of rounding. 4 Assets shown at market value; nonbank finance liability is redemption value of shares of open-end MAY 1967 FLOWOFFUNDS OQ O Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

862 MEMBER BANKS, 1966 MAY 1967 INCOME, EXPENSES, AND DIVIDENDS, BY CLASS OF BANK (Income in thousands, asset and liability items in millions of dollars) Reserve city AHmember banks 5 Country New York City of Item City Chicago Other 1962 1963 1964 1965 1966 1966 Revenue........................................................................ 10,153,59411,169,491 12,385,803 13,841,78216,071,561 2,775,443 688,769 6,036,385 6,570,964 Interest and dividends on securities: U.S. Govt......................................................... 1,686,765 1,725,561 1,741,509 1,686,444 1,702,010 174,753 57,910 519,332 950,015 Other....................................................... 629,130 773,150 911,252 1,078,870 1,265,154 210,213 52,084 446,498 556,359 Interest and discount on loans.................. 6,319,741 7,072,778 7,970,810 9,127,320 10,888,81 I 1,962,471 474,881 4,188,122 4,263,337 Other charges on loans................................. 115,200 127,034 140,430 167,776 197,255 23,376 3,759 96,876 73,244 Service charges on deposits........................ 532,409 567,682 607,193 653,233 704,693 48,147 4,362 277,812 374,372 Other charges, fees, etc.................................. 175,259 180,270 207,184 223,910 265,378 38,704 8,225 109,024 109,425 Trust department.................................... 529,701 556,684 611,043 667,907 733,131 217,430 56,418 290,402 168,881 Other current revenue.................................... 165,389 166,332 196,382 236,322 315,129 100,349 31,130 108,319 75,331 Expenses..................................................................... 7,041,375 7,930,985 8,894,583 10,206,320 11,941,190 1,985,059 479,449 4,499,592 4,977,090 Salaries—Officers.............................................. 830,300 892,580 968,442 I,047,366 1,148,460 122,362 32,207 396,801 597,090 Salaries and wages—Others....................... 1,671,111 1,768,197 1,871,935 1,976,578 2,141,458 358 803 76,660 840,822 865,173 Officer and employee benefits.................... 363,561 393,150 420,078 448,318 507,199 100,636 24,230 183,752 198,581 Directors' fees, etc........................................... 40,692 43,230 45,855 48,610 52,707 2,112 595 7,407 42,593 Interest on time deposits............................. 2,358,132 2,857,600 3,383,524 4,214,144 5,213,416 948,591 231 120 j,991,766 2,041,939 Interest on borrowed money...................... 62,542 104,074 122,054 183,695 293,884 99,743 31,335 126,236 36,570 Net occupancy expense...................... 458,634 500,550 549,756 598'174 653,828 117,192 19,686 235,551 281,399 Furniture and equipment............................ 217,703 254,865 296,599 333,664 369,420 36,733 12,299 146,716 173,672 Other current expenses.................................. 1,038,700 1 ,116,739 1,236,340 1,355,771 1,560,818 198,887 51,317 570,541 740,073 Net current earnings before income taxes.. 3,112,219 3,238,506 3,491,220 3,635,462 4,130,371 790,384 209,320 1,536,793 1,593,874 Recoveries, transfers from reserves, and profits....................................................... 396,291 409,072 274,775 329,907 284,223 19,237 28,346 142,623 94,017 On securities'. Profits................................................................. 216,336 140,361 58,301 67,456 50,036 5,965 458 23,938 19,675 Recoveries....................................................... 4,377 2,902 5,473 5,133 3,833 102 449 858 2,424 Transfers from reserves ............................ 50,147 56,705 53,978 90,954 94,677 1,726 16,001 61,572 15,378 On loans: Recoveries.......................................... 10,035 10,551 10,369 10,524 9,021 152 16 952 7,901 Transfers from reserves............................ 51 ,859 124,361 56,385 73,105 45,195 2,852 4,298 23,654 14,391 All other................................................................ 63,537 74,192 90,269 82,735 81,461 8,440 7,124 31,649 34,248 Losses, chargo-offs, and transfers to reserves........................................................... 703,795 737,728 845,272 982,477 1,330,115 281,741 77,116 513,933 457,325 On securities: Sold...................................................................... 51,169 42,929 79,732 70,068 412,634 146,682 38,199 120,554 107,199 Charge-offs prior io sale. ,.,...,.,. 9,230 9,917 8,378 4,850 5,780 449 945 4,384 Transfers to reserves................................. 84,632 56,646 65,260 54,176 67,240 808 10,649 39,952 15,831 On loans: Losses and charge-offs.............................. 16,825 16,165 16,845 19,302 17,912 15 500 17,397 Transfers to reserves................................. 451,526 516,448 551,796 723,997 629,423 122,887 20,421 229,040 257,075 All other............................................................... 90,413 95,623 123,261 110,084 197,126 11,362 7,383 122,942 55,439 Net income before related taxes..................... 2,804,715 2,909,850 2,920,723 2,982,892 3,084,479 527,880 160,550 1,165,483 1,230,566 Taxes on net income. ........................................... 1,109,798 1,078,789 997,626 879,965 875,644 144,551 50,621 352,090 328,382 Federal.................................................................... 1,021,782 991,081 909 928 788,710 769,269 107,716 50,621 307,157 303,775 State......................................................................... 88,016 87,708 87,698 91,255 106,375 36,835 44,933 24,607 Net income......................................... 1,694,917 1,831,061 1,923,097 2,012,927 2,208,835 383,329 109,929 813,393 902,184 Cash dividends declared..................................... 831,955 877,770 960,847 1,057,517 1,144,619 259,034 49,224 452,875 383,486 On preferred stock 2................................ 1,064 2,578 24,270 52,248 61,496 29,173 200 22,475 9,648 On common stock............................................ 830,891 875,192 936,577 1,005,269 1,083,123 229,861 49,024 430,400 373,838 Memoranda items: Recoveries credited to reserves * On securities........................................ 3,541 5,724 4,136 3,703 2,800 329 678 1,793 On loans........................................................... 71,942 81,604 139,413 100,276 115,668 10,206 3,027 38,344 64,091 Losses charged to reserves 4 On securities................................................. 11,950 14,860 42,030 21,338 54,675 1,627 2,089 35,598 15,361 On loans........................................................... 196,822 273,439 319,906 346,200 438,620 69,433 12,180 162,096 194,911 Assets, deposits, and capital accounts: Loans.............................................................. 108,551 122,732 137,915 158,774 177,557 34,954 8,514 67,690 66,399 U.S. Govt, securities......................................... 52^343 51,043 47,945 45,702 42,286 4,863 1,610 13,192 22,621 Other securities................................................. 21,328 26,321 30,307 34,658 38,438 6,100 1,534 13,241 17,563 Cash assets....................................................... . 43.548 44,968 47,698 51,916 55,468 13,225 2,462 22,046 17,735 Other assets................................. 5,977 6,594 7,471 8,475 9,619 2,974 452 3,522 2,671 Total assets......................................................... 231,746 251,657 271.336 299,525 323,368 62,116 14,571 119,691 126,990 Time deposits.................................................... 73,097 85,505 97,538 112,962 126,700 18,685 5.062 48,125 54,828 Total deposits........................................ 205,029 221,479 238,862 263,661 282,910 50,969 12,511 105.510 113,920 Total capital accounts................................... 19,066 20,266 21,932 24,050 25,627 5,197 1,161 9,259 10,010 Number of officers............................................... 78,406 82,045 r87,O87 91,419 98,288 7,404 1,756 33,515 55,613 Number of employees......................................... 420,886 433,299 ’’444,016 459,882 491,551 58,227 14,759 182,188 236,377 Number of banks................................................. 6,047 6, 108 6,225 6,221 6,150 12 11 169 5,958 Note.—The schedule for reporting current operating expenses was funds transactions have been classified as interest and discount ,on loans revised beginning with 1961 and certain items are not directly comparable and interest on borrowed money in these tables. with data for previous years. For detailed summary of these changes see For other notes see following two pages. May 1962 Bull., pp. 526-27. Revenue and expenses incident to Federal Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 MEMBER BANKS, 1966 863 INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT (Income in thousands, asset and liability items in millions of dollars) Federal Reserve district Item | Chicago Boston Y N o e r w k d P e h lp il h a i ­ a C la le n v d e­ m R o ic n h d ­ Atlanta Lo S u t. is M ap in o n li e s ­ K C an it s y as Dallas Fra S n a c n i sco Revenue.................................................... 726,9344,021,760 760,1901,212,892804,501 964,6512,392,916502,334 413,553 660,087797,8342,813,909 Interest and dividends on securities: U.S. Govt................................. 56,936 303,648 82,708 161,790 98,497 129,187 323,577 75,658 58,841 92,491 99,163 219,514 Other.......................................... 47,329 334,435 57,099 111,359 52,633 76,028 198,540 43,535 33,838 45,261 68,578 196,519 Interest and discount on loans . 481,5592,806,172 513,814 799,189 541,931 622,339 1 ,582,145 331,070 265,589 437,161 543,846 1,963,996 Other charges on loans............. 6,362 39,405 6,368 11,584 15,115 14,001 22,691 3,266 3,867 5, 153 7,879 61,564 Service charges on deposits. . . 38,573 116,535 27,315 44,408 44,158 57,463 77,572 18,598 21,580 36,573 33,883 188,035 Other charges, fees, etc............... 22,063 51,400 7,794 14,768 15,892 22,073 36,389 8,488 14,065 11,116 12,067 49,263 Trust department........................... 61,367 254,884 47,564 57,324 28,498 30,824 103,382 15,117 11,605 2!,673 21,325 79,568 Other current revenue................. 12,745 115,281 17,528 12,470 7,777 12,736 48,620 6,602 4,168• 10,659 11,093 55,450 Expenses.................................................. 512,8082,961,078 556,380 879,102576,417 710,867 1,793,279360,058 312,367 473,060586,3972,219,377 Salaries—Officers......................... 56,506 214,103 53,021 74,592 68,755 80,775 156,851 42,323 38,501 70,242 70,536 222,255 Salaries and wages—Others . . 116,357 536,026 104,762 149,645 115,961 137,185 296,776 61,892 45,996 83,339 89,413 404,106 Officer and employee benefits. 27,933 143,405 27,401 31,799 23,977 30,152 72,481 14,595 12,712 18,808 19,895 84,041 Directors’ fees, etc......................... 2,948 7,293 5,041 4,082 4,194 4,597 7,735 3,327 2,294 4,111 4,621 2,464 Interest on time deposits.......... 159,766 1,376,815 226,418 411,966212,813 255,749 848,034 138,439 134,572 169,584235,226 1,044,034 Interest on borrowed money. . 13,148 112,325 8,748 11,144 7,726 13,445 46,627 11,001 6,446 7,557 19,771 35,946 Net occupancy expense.............. 33,379 175,969 32,357 39,406 32,520 38,590 84,958 18,979 15,338 26,749 32,179 123,404 Furniture and equipment.......... 19,917 67,294 19,284 25,461 21,387 31,180 52,142 12,717 9,623 20,598 19,247 70,570 Other current expenses............... 82,854 327,848 79,348 131,007 89,084 119,194 227,675 56,785 46,885 72,072 95,509 232,557 Net current earnings before in­ come taxes.......................... 214,1261,060,682 203,810 333,790228,084 253,784 599,637 142,276 101,186 187,027211,437 594,532 Recoveries, transfers from re­ serves, and profits........... 9,790 33,304 8,042 70,859 14,822 14,865 59,845 20,174 6,941 11,383 8,880 25,318 On securities: Profits........................................ 1,389 9,989 2,047 2,349 2,212 3,534 6,836 5,098 731 2,855 1,973 11,023 Recoveries..................................... 53 418 261 91 65 107 749 38 1,244 733 38 36 Transfers from reserves. . . . 2,161 5,520 939 40,871 3,741 1,091 27,632 5,386 945 2,877 1,188 2,326 On loans: Recoveries................................ 226 491 670 534 344 482 463 498 581 1,688 1,825 1,219 Transfers from reserves. . . . 1,634 5,011 1,238 19,529 550 1,049 7,201 3,516 1,212 930 1,516 1,809 Al! other............................................. 4,327 11,875 2,887 7,485 7,910 8,602 16.964 5,638 2,228 2,300 2,340 8,905 Losses, charge-offs, and trans­ fers to reserves .................. 58,031 354,016 44,085 162,199 59,933 71,926 207,173 45,143 28,689 49,287 56,076 193,557 On securities: Sold............................................. 12,364 162,772 12,429 25,127 14,405 12,085 82,676 13,388 12,145 12,341 8,733 44,169 Charge-offs prior to sale.. . . 141 519 150 341 178 200 963 922 501 1,255 482 128 Transfers to reserves............... 5,310 5,208 1,912 10,844 3,878 3,030 14,211 1,552 345 721 4,858 15,371 On loans: Losses and charge-offs..... 223 488 776 1,051 601 1,485 1,129 1.211 789 3,523 4,050 2,586 Transfers to reserves............... 30,099 167,207 23,958 43,799 31,567 45,726 88,028 20,570 12,480 27,069 32,476 106,444 Al! other............................................. 9,894 17,822 4,860 81,037 9,304 9,400 20,166 7,500 2,429 4,378 5,477 24,859 Net income before related taxes.. 165,885 739,970 167,767 242,450182,973 196,723 452,309 117,307 79,438 149,123 164,241 426,293 Taxes on net income......................... 58,374 185,922 51,012 60,064 60,858 57,548 118,472 32,084 23,473 46,903 47,497 133,437 Federal............................................... 46,171 142,192 50,508 60,064 59,613 56,070 116,208 31,350 18,566 42,897 47,413 98,217 State..................................................... 12,203 43,730 504 1,245 1 ,478 2,264 734 4,907 4,006 84 35,220 Net income............................................. 107,511 554,048 116,755 182,386122,115 139,175 333,837 85,223 55,965 102,220116,744 292,856 Cash dividends declared................. 57,586 341,806 63,739 91,011 56,769 55,387 135,937 34,756 28,241 44,441 59,816 175,130 On preferred stock2.................... 624 34,378 608 1,444 1,854 3,529 4,540 1,909 45 1,398 1,724 9,443 On common stock......................... 56,962 307,428 63,131 89,567 54,915 51 ,858 131,397 32,847 28,196 43,043 58,092 165,687 Memoranda items: Recoveries credited to re­ serves 3 On securities................................ 257 409 19 829 159 44 512 24 2 10 344 191 On loans........................................ 6,479 18,486 4,083 6,897 3,664 7,989 17,919 4,141 5,997 8,157 13,700 18,156 Losses charged to reserves4 On securities........................... 6,240 6,933 147 11,217 3,576 1,773 3,622 1,847 8 241 5,359 13,712 On loans..................................... . 21,438 106,380 16,375 24,099 14,907 31,828 56,949 10,476 8,607 22,484 37,071 88,006 Assets, deposits, and capital accounts: Loans................................................... 7,593 48,370 8,407 13,351 8,511 9,583 26,341 5,484 4,173 6,880 8,739 30,127 U.S. Govt, securities.................... 1,439 8,088 2,056 3,896 2,328 3,114 8,060 1,806 1,358 2,166 2,379 5,597 Other securities.............................. 1,498 10,011 1,801 3,482 1,637 2,220 6,007 1,384 1,045 1,475 2,139 5,740 Cash assets........................................ 2,247 16,101 2,451 3,607 2,661 3,820 7,562 2,100 1,269 2,650 3,639 7,362 Other assets...................................... 357 3,474 357 469 339 489 1,105 211 173 285 511 1,849 Total assets............................. 13,133 86,044 15,073 24,804 15,475 19,224 49,075 10,986 8,019 13,455 17,406 50,674 Time deposits................................... 3,873 29,810 6,171 11,199 5,536 6,454 21,367 3,673 3,440 4,337 5,858 24,982 Total deposits.................................. 11,274 72,319 13,300 21,977 13,724 17,180 43,789 9,772 7,200 12,013 15,466 44,896 Total capital accounts................. 1,167 6,978 1,257 2,159 1,268 1,523 3,536 912 612 1,186 1,423 3,605 Number of officers............................ 4,768 14,993 4,992 6,148 7,128 7,080 11,935 4,095 3,623 6,369 6,520 20,637 Number of employees...................... 27,118 98,527 25,090 34,519 29,255 50,713 67,699 16,364 12,028 20,961 22,221 87,056 Number of banks............................... 249 400 387 498 399 524 995 480 494 835 673 216 1 Includes figures for al! banks that were members of the FRS at the 2 Includes interest on capital notes and debentures. end of the year (including those becoming members during the year whose returns may cover operations for only part of the year); and in J Not included in recoveries shown above. addition includes appropriate adjustments for member banks in opera­ 4 Not included in losses shown above. tion during part of the year but not at the end of the year. Asset and liability data may not add to totals because of rounding. For other notes see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

864 MEMBER BANKS, 1966 MAY 1967 INCOME, EXPENSES, AND DIVIDENDS OF RESERVE CITY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income in thousands, asset and liability items in millions of dollars) Federal Reserve district Item Boston Y N o e r w k d P e h lp il h a i ­ a C la le n v d e­ m R o ic n h d ­ Atlanta Chicago Lo S u t. is M ap in o n li e s ­ K C an it s y as I Dallas Fra S n a c n i sco Revenue..................... ...................... . 257,846 131,993 336,046 706,945 407,898 375,626 561,566 233,175 125,319 238,632I 350,2302,311,109 Interest and dividends on securities: U.S. Govt............................... 15,000 10,407 23,805 68,869 44,123 38,435 57,724 22,664 10,209 23,153 35,688 169,255 Other........................................ 12,620 13,600 16,516 67,275 25,450 25,503 47,294 19,084 7,766 16,091 29,390 165,909 Interest and discount on loans 167,026 93,905 236,378 479,341 274,889 255,516 389,445 164,352 87,252 166,372 249,808 1,623,838 Other charges on loans............ 3,229 2,310 2,825 8,102 8,392 7,237 7,392 1,761 1,228 2,098 4,426 47,876 Service charges on deposits. . 5,683 5,989 11,800 20,598 22,987 16,798 19,095 7,574 3,456 7,200 5,370 151,262 Other charges, fees, etc............ 14,758 558 3,332 9,051 7,373 10,651 10,477 3,744 5,389 2,648 5,521 35,522 Trust department......................... 32,180 3,452 30,550 45,172 20,469 16,557 23,050 10,249 8,675 15,549 14,950 69,549 Other current revenue............... 7,350 1,772 10,840 8,537 4,215 4,929 7,089 3,747 1,344 5,521 5,077 47,898 Expenses................................................ 171,486 106,138 241,951 500,991 286,450 269,182 431,709 163,391 89,965 167,403 251,519 1,819,407 Salaries—Officers......................... 16,094 8,628 19,556 34,888 30,960 26,032 26,322 14,183 7,421 17,152 19,671 175,894 Salaries and wages—Others.. 41,686 17,922 52,131 87,870 60,959 55,396 82,630 30,557 16,468 33,172 34,364 327,667 Officer and employee benefits 9,000 4,020 14,670 18,523 12,345 12,735 16,186 7,405 3,860 7,232 8,625 69,151 Directors’ fees, etc....................... 274 391 555 708 1,126 786 583 472 307 417 505 1,283 Interest on time deposits.. . . 50,079 53,453 88,158 244,021 102,824 92,587 205,547 58,795 34,784 62,068 115,076 884,374 Interest on borrowed money. 10,239 1 .492 7,440 9,285 5,988 9,801 10,619 10,043 5,260 5,468 17,430 33,171 Net occupancy expense............ 10,190 5,724 15,232 21,743 17,651 14,395 21,789 8,391 4,361 9,404 9,070 97,601 Furniture and equipment.... ‘ 6,431 3,134 9,307 13,505 11,261 11,437 12,812 6,302 2,882 8,690 7,319 53,636 Other current expenses............. 27,493 11,374 34,902 70,448 43,336 46,013 55,221 27,243 14,622 23,800 39,459 176,630 Net current earnings before income taxes.................................. 86,360 25,855 94,095 205,954 121,448 106,444 129,857 69,784 35,354 71,229 98,711 491,702 Recoveries, transfers from reserves, and profits.................. 3,744 753 1,410 60,656 9,902 8,485 15,726 16,490 1,692 4,648 2,247 16,870 On securities: Profits................................. 530 104 238 889 865 1,867 2,772 3,882 56 1,688 814 10,233 Recoveries................................. 1 1 17 102 5 590 117 2 23 Transfers from reserves.... 834 503 411 37,176 3,068 551 10,180 4,951 542 2,572 409 375 On loans: Recoveries................................... 23 7 403 21 4 40 2 55 28 9 360 Transfers from reserves.... 400 18,064 154 45 284 2,795 341 1,571 All other.......................................... 1,957 139 357 4,506 5,810 5,965 2,388 4,855 449 243 672 4,308 Losses, charge-offs, and trans­ fers to reserves............... 22,912 8,927 18,397 128,723 34,130 26,371 49,312 24,997 10,525 16,828 19,775 153,036 On securities: Sold................................................ 3,241 37 5,150 16,026 9,671 6,665 19,389 9,341 5,080 6,109 4,220 35,625 Charge-offs prior to sale... 64 456 ................3.14 111 Transfers to reserves............ 2,828 1,078 1,519 8,381 3,227 783 2,152 1,062 360 3,797 14,765 On loans: Losses and charge-offs. ... 3 8 213 61 215 Transfers to reserves............. 12,814 7,360 10,263 26,670 14,483 15,961 25,532 9,692 4,591 9,545 10,480 81,649 All other........................................... 4,029 452 1,465 77,582 6,746 2,954 2,239 4,446 641 439 1,278 20,671 Net income before related taxes. 67,192 17,681 77,108 137,887 97,220 88,558 96,271 61,277 26,521 59,049 81,183 355,536 Taxes on net income....................... 27,680 1,728 27,297 33,678 32,157 27,507 18,256 17,199 9,273 20,115 25,378 111,822 Federal............................................. 22,330 912 27,297 33,678 31,348 27,036 17,338 16,854 6,953 18,196 25,378 79,837 State.................................................... 5,350 816 • ................ 809 471 918 345 2,320 1 ,919 ...........3..1...,.9.85 Net income........................................... 39,512 15,953 49,811 104,209 65,063 61,051 78,015 44,078 17,248 38,934 55,805 243,714 Cash dividends declared............... 23,005 11,116 30,719 60,989 32,412 26,353 34,803 20,311 9,618 20,004 34,935 148,610 On preferred stock2.................... 854 1,117 1,739 2,772 3,342 1,678 1,142 1,359 8,472 On common stock....................... 23,005 10,262 30,719 59,872 30,673 23,581 31,461 18,633 9,618 18,862 33,576 140,138 Memoranda items: Recoveries credited to reserves 3 On securities.............................. 2 16 52 3 424 13 168 On loans............................ 3,116 1 ,161 1,046 3,109 1,235 2,292 4,379 2,010 625 2,707 3,229 13,435 Losses charged to reserves'* On securities.............................. 2,712 2,160 9,098 2,710 95 428 1,218 1 4,592 12,584 On loans...................................... 10,170 8,522 7,244 13,609 5,977 9,455 15,814 4,241 1,985 7,638 11,478 65,963 Assets, deposits, and capital accounts: Loans................................................. 2,716 1,387 3,865 8,135 4,465 4,047 6,444 2,863 1,447 2,812 4,356 25,152 U.S. Govt, securities.................. 426 252 567 1,686 1 ,049 1,013 1,498 551 244 551 959 4,396 Other securities............................. 396 397 508 2,083 793 726 1,325 583 249 482 870 4,828 Cash assets...................................... 956 326 1,409 2,294 1,560 1 ,860 2,256 1,229 589 1,272 2,008 6,288 Other assets.................................... 163 74 200 30! 182 205 247 118 53 138 292 1,548 Total assets..................................... 4,657 2,437 6,549 14,499 8,049 7,852 11,769 5,345 2,583 5,255 8,485 42,212 Time deposits................................. 1 ,086 1,266 2,085 6,289 2,601 2,260 5,008 1,466 795 1 ,489 2,752 21,029 Total deposits................................ 3,923 2,162 5,733 12,740 7,144 6,931 10,571 4,655 2,269 4,649 7,377 37,357 Total capital accounts............... 431 172 512 1 ,329 632 645 805 457 205 477 709 2,886 Number of officers........................... 1,196 677 1,461 2,311 3,341 1 ,984 1,744 1,143 539 1,301 1,441 16,377 Number of employees.................... 8,549 4,002 11,200 17,989 14,136 12,707 17,914 7,588 3,770 7,482 7,481 69,370 Number of banks.............................. 5 3 6 16 16 25 15 15 8 22 17 21 Note.—-Does not include reserve city banks in the cities of New York reserve balances), and cash items in process of collection. Total capita. and Chicago. The figures of assets, deposits, and capital accounts are accounts are comprised of the aggregate book value of capital stock averages of the amounts reported for 3 official call dates beginning with capital notes and debentures, surplus, undivided profits, reserves for conthc end of the previous year and ending with the December 1966 call. tingencies, and other capital reserves. The number of officers, employees, and banks are as of the end of the year. For other notes see preceding page. Cash assets are comprised of cash, balances with other banks (including Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 MEMBER BANKS, 1966 865 INCOME, EXPENSES, AND DIVIDENDS OF COUNTRY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income in thousands, asset and liability items in millions of dollars) Federal Reserve district Item Boston Y N o e r w k d P e h lp il h a i ­ a C l l a e n v d e­ R m i o c n h d ­ Atlanta Chicago Lo S u t. is M ap in o n lis e­ Ka C n i s t a y s Dallas F c S i r s a a c n n o ­ Revenue.................................................. 469,088 1,114,324 424,144 505,947 396,603 589,025 1,142,581 269,159 288,234 421,455 447,604 502,800 Interest and dividends on securities: U. S. Govt............................. 41,936 118,488 58,903 92,921 54,374 90,752 207,943 52,994 48,632 69,338 63,475 50,259 Other........................................ 34,709 110,622 40,583 44,084 27,183 50,525 99,162 24,451 26,072 29,170 39,188 30,610 Interest and discount on loans314,533 749,796 277,436 319,848 267,042 366,823 717,819 166,718 178,337 270,789 294,038 340,158 Other charges on loans............. 3,133 13,719 3,543 3,482 6,723 6,764 11,540 1,505 2,639 3,055 3,453 13,688 Service charges on deposits. . 32,890 62,399 15,515 23,810 21,171 40,665 54,115 11,024 18,124 29,373 28,513 36,773 Other charges, fees, etc............. 7,305 12,138 4,462 5,717 8,519 11,422 17,687 4,744 8,676 8,468 6,546 13,741 Trust department......................... 29,187 34,002 17,014 12,152 8,029 14,267 23,914 4,868 2,930 6,124 6,375 10,019 Other current revenue............... 5,395 13,160 6,688 3,933 3,562 7,807 10,401 2,855 2,824 5,138 6,016 7,552 Expenses............................................... 341,322 869,881 314,429 378,111 289,967 441,685 982,121 196,667 222,402 305,657 334,878 399,970 Salaries—Officers......................... 40,412 83,113 33,465 39,704 37,795 54,743 98,322 28,140 31,080 53,090 50,865 46,361 Salaries and wages—Others. . 74,671 159,301 52,631 61,775 55,002 81,789 137,486 31,335 29,528 50,167 55,049 76,439 Officer and employee benefits. 18,933 38,749 12,731 13,276 11,632 17,417 32,065 7,190 8,852 11,576 11,270 14,890 Directors’ fees, etc...................... 2,674 4,790 4,486 3,374 3,068 3,81 1 6,557 2,855 1,987 3,694 4,116 1,181 Interest on time deposits .... 109,687 374,771 138,260 167,945 109,989 163,162 411,367 79,644 99,788 107,516 120,150 159,660 Interest on borrowed money. 2,909 11,090 1,308 1,859 1,738 3,644 4,673 958 1,186 2,089 2,341 2,775 Net occupancy expense............ 23,189 53,053 17,125 17,663 14,869 24,195 43,483 10,588 10,977 17,345 23,109 25,803 Furniture and equipment. .. . 13,486 27,427 9.977 11,956 10,126 19,743 27,031 6,415 6,741 11,908 11,928 16,934 Other current expenses............ 55,361 117,587 44,446 60,559 45,748 73,181 121,137 29,542 32,263 48,272 56,050 55,927 Net current earnings before in­ come taxes.................................. 127,766 244,443 189,715 127,836 106,636 147,340 260,460 72,492 65,832 115,798 112,726 102,830 Recoveries, transfers from re­ serves, and profits......... 6,046 13,314 6,632 10,203 4,920 6,380 15,773 3,684 5,249 6,735 6,633 8,448 On securities: Profits...................................... 859 3,920 1,809 1,460 1,347 1,667 3,606 1,216 675 1,167 1,159 790 Recoveries.................................. 53 316 260 91 64 90 198 33 654 616 36 13 Transfers from reserves.... 1,327 3,291 528 3,695 673 540 1,451 435 403 305 779 1,951 On loans: Recoveries.............................. 203 332 267 513 340 442 447 496 526 1,660 1,816 859 Transfers from reserves... . 1 ,234 2, 159 1 ,238 1 ,465 396 1 ,004 2,619 721 1,212 930 1,175 238 All other.......................................... 2,370 3,296 2,530 2,979 2,100 2,637 7,452 783 1,779 2,057 1,668 4,597 Losses, charge-offs, and trans­ fers to reserves ............... 35,119 63,348 25,688 33,476 25,803 45,555 80,745 20,146 18,164 32,459 36,301 40,521 On securities: Sold.......................................... 9,123 16,053 7.279 9,101 4,734 5,420 25,088 4,047 7,065 6,232 4,513 8,544 Charge-offs prior to sale... 141 517 150 277 178 200 514 466 501 941 482 17 Transfers to reserves............ 2,482 3,322 393 2,463 651 2,247 1,410 490 345 361 1 ,061 606 On loans: Losses and charge-offs.... 223 488 776 1,051 598 1,477 1,114 1,211 576 3,462 4,050 2,371 Transfers to reserves. ..... 17,285 36,960 13,695 17, 129 17,084 29,765 42,075 10,878 7,889 17,524 21,996 24,795 All other.......................................... 5.865 6,008 3,395 3,455 2,558 6,446 10,544 3,054 1 ,788 3,939 4,199 4,188 Net income before related taxes. 98,693 194,409 90,659 104,563 85,753 108,165 195,488 56,030 52,917 90,074 83,058 70,757 Taxes on net income....................... 30,694 39,643 23,715 26,386 28,701 30,041 49,595 14,885 14,200 26,788 22,119 21,615 Federal.............................................. 23,841 33,564 23,211 26,386 28,265 29,034 48,249 14,496 11,613 24,701 22,035 18,380 6,853 6,079 504 436 1,007 1,346 389 2,587 2,087 84 3,235 Net income........................................... 67,999 154,766 66,944 78,177 57,052 78,124 145,893 41,145 38,717 63,286 60,939 49,142 Cash dividends declared............... 34,581 71,656 33,020 30,022 24,357 29,034 51,910 14,445 18,623 24,437 24,881 26,520 On preferred stock2.................... 624 4.351 608 327 115 757 998 23! 45 256 365 971 On common stock....................... 33,957 67,305 32,412 29,695 24,242 28,277 50,912 14,214 18,578 24,181 24,516 25,549 Memoranda items: Recoveries credited to re­ serves 3 On securities.............................. 257 78 19 813 107 41 88 11 2 10 176 191 On loans..................................... 3,363 7,119 3,037 3,788 2,429 5,697 10,513 2,131 5,372 5,450 10,471 4,721 Losses charged to reserves4 On securities......................... 3,528 3,146 147 2,119 866 1,678 1,105 629 8 240 767 1,128 On loans..................................... 11,268 28,425 9,131 10,490 8,930 22,373 28,955 6,235 6,622 14,846 25,593 22,043 Assets, deposits, and capital accounts: Loans.................................................. 4,876 12,029 4,542 5,216 4,045 5,535 11,383 2,621 2,726 4,068 4,383 4,974 U.S. Govt, securities................. 1,013 2,973 1,489 2,209 1,279 2,101 4,953 1,255 1,114 1,614 1,420 1,201 Other securities............................ 1,102 3,513 1,293 1,399 844 1,494 3,148 800 796 993 1,269 912 Cash assets..................................... 1 ,291 2,550 1,043 1.313 1,101 1,960 2,845 871 680 1,377 1,631 1.074 Other assets.................................... 194 426 157 168 156 283 406 93 120 147 218 301 Total assets..................................... 8,476 21,491 8,524 10,305 7,426 11,373 22,735 5,641 5,437 8,201 8,921 8,461 Time deposits................................ 2,787 9,860 4,086 4,910 2,935 4,195 11,296 2,207 2,645 2,848 3,106 3,954 Total deposits................................ 7,350 19,188 7,567 9,237 6,581 10,249 20,708 5,117 4,931 7,364 8,088 7,539 Total capital accounts............... 736 1,609 745 830 636 878 1,571 455 406 710 715 719 Number of officers........................... 3,572 6,912 3,531 3,837 3,787 5,096 8,435 2,952 3,084 5,068 5,079 4,260 Number of employees.................... 18,569 36,298 13,890 16,530 15,119 38,006 35,026 8,776 8,258 13,479 14,740 17,686 Number of banks............................. 244 385 381 482 383 499 969 465 486 813 656 195 For notes, see preceding two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

866 MEMBER BANKS, 1966 MAY 1967 INCOME, EXPENSES, AND DIVIDENDS, BY SIZE OF BANK (Amounts in thousands; asset and liability items in millions of dollars) Size group—total deposits (in thousands of dollars) Item Total 1 Less than 2,000— 5,000— 10,000— 25,000— 50,000— 100,000— 500,000 2,000 5,000 10,000 25,000 50,000 100,000 500,000 or more Revenue................................................................... 16,053,842 29,506 286,498 626,574 1,263,079 986,119 1,008,945 3,109,006 8,744,115 Interest and dividends on securities: U.S. Govt............................................... 1,700,775 7,096 62,081 120,750 210,059 150,950 140,590 350,377 658,872 Other.............................................................. 1,264,790 1,449 18,038 49,016 108,116 87,516 85,898 249,409 665,348 Interest and discount on loans............. 10,884,263 18,353 178,521 396,181 806,819 628,911 650,102 2,078,061 6,127,315 Other charges on loans............................ 197,116 115 1,909 4,472 12,038 10,273 15,123 38,302 114,884 Service charges on deposits................... 704,485 1,583 16,801 37,190 78,208 59,923 55,953 152,892 301,935 Other charges, fees, etc............................. 265,219 613 5,863 11,541 20,667 15,337 18,995 49,460 142,743 Trust department........................................ 722,459 1 429 1,596 13,486 21,654 29,037 151,757 504,499 Other current revenue.. .......................... 314,735 296 2,856 5,828 13,686 11,555 13,247 38,748 228,519 Expenses................................................................. 11,927,134 22,607 218,663 475,499 963,137 751,255 773,314 2,301,476 6,421,183 Salaries-—Officers........................................ 1,146,204 6,444 44,212 75,726 125,145 88,214 84,992 228,775 492,696 Salaries and wages—-Others................. 2,139,518 2,697 30,321 71,717 155,771 129,973 133,420 447,134 1,168,485 Officer and employee benefits............... 506,697 654 6,695 15,756 34,402 28,438 31,117 103,091 286,544 Directors’ fees, etc....................................... 52,647 586 4,689 7,838 11,491 6,381 4,594 8,831 8,237 Interest on time deposits......................... 5,211,300 6,289 77,900 189,821 399,984 312,290 326,693 915,404 2,982,919 Interest on borrowed money................. 293,862 84 398 1 ,063 3,091 4,297 6,923 37,407 240,599 Net occupancy expense............................ 652,970 1,333 12,115 26,463 53,234 42,140 44,497 132,551 340,637 Furniture and equipment........................ 369,178 680 6,894 14,613 30,850 24,744 28,199 92,785 170,413 Other current expenses.............................. 1,554,758 3,840 35,439 72,502 149,169 114,778 112,879 335,498 730,653 Net current earnings before income taxes. 4,126,708 6,899 67,835 151,075 299,942 234,864 235,631 807,530 2,322,932 Recoveries, transfers from reserves, and profits.................................................. 283,768 783 4,346 10,925 17,286 13,510 15,013 52,003 169,902 On securities: Profits...................................................... 49,967 118 743 2,707 4,704 2,808 2,378 10,484 26,025 Recoveries.................................................. 3,830 3 86 230 1,327 390 362 325 1,107 Transfers from reserves....................... 94,557 3 87 397 1,043 1 ,872 3,169 13,092 74,894 On loans: Recoveries............................................. 9,017 543 I .790 2,275 1 ,888 449 220 1,119 733 Transfers from reserves...................... 45,193 45 752 1,419 2,700 2,395 2,489 5,124 30,269 All other............................................................ 81,204 71 888 3,897 5,624 5,596 6,395 21,859 36,874 Losses, charge-offs, and transfers to re­ serves.............................................................. 1,329,259 2,616 20,969 45,362 87,044 69,225 71,811 208,524 823,708 On securities: Sold........................................................... 412,178 150 2,313 6,821 17,628 18,090 20,104 58,651 288,421 Charge-offs prior to sale.................... 5,781 20 459 900 1,520 706 474 433 1,269 Transfers to reserves............................. 67,216 5 161 861 2,062 2,203 1 ,998 10,947 48,979 On loans: Losses and charge-offs......................... 17,905 1,551 4,840 5,231 3,918 851 571 538 405 Transfers to reserves............................. 629,166 665 10,860 26,776 50,828 39,157 41,356 115,057 344.467 AU other............................................................ 197,013 225 2,336 4,773 1t,088 8,218 7,308 22,898 140,167 Net income before related taxes................ 3,081,217 5,066 51,212 116,638 230,184 179,149 178,833 651,009 1,669,126 Taxes on net income........................................ 873,653 1,066 10,714 27,514 60,005 49,982 47,796 195,271 481,305 Federal.............................................................. 767,632 978 9,785 25,535 56,498 46,860 45,050 182,384 400,542 State .................................................................... 106,021 88 929 1,979 3,507 3,122 2,746 12,887 80,763 Net income........................................................... 2,207,564 4,000 40,498 89,124 170,179 129,167 131,037 455,738 1,187,821 Cash dividends declared................................ 1,142,542 1,607 13,588 29,776 62,619 53,576 56,844 215,087 709,445 61,500 9 138 548 871 1 ,404 8,315 50,215 On common stock...................................... 1,081,042 1,607 13,579 29,638 62,071 52,705 55,440 206,772 659,230 Memoranda items: Recoveries credited to reserves3 2,802 3 11 96 844 325 584 939 On loans...................................................... 115^50 194 3,024 7,266 13,947 10,356 13,336 21,851 45,676 Losses charged to reserves4 54,662 49 267 1,280 2,182 2,398 11,479 37,007 On loans...................................................... 438,452 543 8,630 20,160 39,378 30,883 32^43 82,755 223,460 Assets, deposits, and capital accounts: Loans.................................................................. 183,643,183 271,496 2,770,113 6,249,867 12,880,917 10,278,493 10,716,23734,574,082 105,901,978 U.S. Govt, securities................................. 41 ,888,008 171,305 1,458,112 2,805,046 4,858,328 3,458,582 3,344,308 8,417,474 17,374,853 Other securities............................................. 38,949,209 51,926 650,532 1,770,459 3,692,166 2,875,568 2,819,855 7,923,369 19,165,334 Cash assets...................................................... 60,700,264 110,993 885,229 1,831.675 3,465,105 2,791,117 3,052,714 11,619,196 36,944,235 Other assets..................................................... 10,125,976 8,952 99,977 233,722 506,500 420,082 433,571 1,464,549 6,958,623 Total assets..................................................... 335,306,640 614,672 5,863,963 12,890,76925,403,016 19,823,84220,366,68563,998,670 186,345,023 Time deposits................................................ 130,485,673 200,386 2,398,277 5,721,578 11,728,630 8,891,696 9,062,46724,827,591 67,655,048 Total deposits................................................ 291,856,429 537,513 5,220,585 11,617,85322,958,04417,845,535 18,351,11457,102,198 158,223,587 Total capital accounts.............................. 26,235,866 72,158 580,389 1,105,450 2,000,851 1,496,047 1,500,909 4,878,955 14,601,107 Number of officers.......................................... 98,074 1,049 5,395 8,314 12,134 7.,735 6,963 18,236 38,248 Number of employees.................................. 491,040 978 8,978 36,374 42,472 34,164 33,769 104,781 229,524 Number of banks............................................. 6,121 374 1,496 1,624 1 ,467 519 266 281 94 1 Total is for banks operating during the entire year, except that one 4 Not included in losses above. trust company having no deposits is excluded. _ r । n 2 Includes interest on capital notes and debentures. Note.—The figures for assets deposits capital accounts number of 3 Not included in recoveries above. officers ana employees, and number of banks are as of the end of the year. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 MEMBER BANKS, 1966 867 INCOME RATIOS, BY CLASS OF BANK (Computed from aggregate dollar amounts; ratios expressed as percentage) All member banks Reserve city New City Country York of Other Item 1962 1963 1964 1965 1966 City Chicago 1966 Summary ratios: Percentage of total capital accounts: Net current earnings before income taxes............ 16.3 16.0 15.9 15.1 16.1 15.2 18.0 16.6 15.9 Net income before related taxes................................ 14.7 14.4 13.3 12.4 12.0 10.2 13.8 12.6 12.3 Net income............................................................................ 8.9 9.0 8.8 8.7 8.6 7.4 9.5 8.8 9.0 Cash dividends declared ................................................. 4.4 4.3 4.4 4.4 4.5 5.0 4.2 4.9 3.8 Percentage of total assets: Total operating revenue................................................. 4.38 4.44 4.56 4.62 4.97 4.47 4.73 5.04 5. 17 Net current earnings before income taxes............ 1.34 1.29 1.29 1.21 1 .28 1.27 1.44 1.28 1.26 Net income............................................................................ .73 .73 .71 .70 .68 .62 .75 .68 .71 Sources and disposition of income: Percentage of total operating revenue: Interest and dividends on: U. S. Govt, securities................................................ 16.6 15.4 14.1 12.2 10.6 6.3 8.4 8.6 14.4 Other securities............................................................. 6.2 6.9 7.3 7.8 7.9 7.6 7.6 7.4 8.5 Revenue on loans.............................................................. 63.4 64.5 65.5 67.2 68.9 71.6 69.5 71.0 66.0 Service charges on deposit accounts....................... 5.2 5.1 4.9 4.7 4.4 1.7 0.6 4.6 5.7 All other revenue.............................................................. 8.6 8.1 8.2 8.1 8.2 12.8 13.9 8.4 5.4 Total revenue.................................................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages............................................................ 24.6 23.8 22.9 21.9 20.4 17.3 15.8 20.5 22.3 Officer and employee benefits...................................... 3.6 3.5 3.4 3.2 3.2 3.6 3.5 3.0 3.0 Interest on time deposits............................................... 23.2 25.6 27.3 30.4 32.4 34.2 33.6 33.0 31.1 Net occupancy expense................................................. 4.5 4.5 4.4 4.3 4.1 4.2 2.8 3.9 4.3 Other current expenses.................................................... 13.4 13.6 13.8 13.9 14.2 12.2 13.9 14.1 15. 1 Total expenses................................................................. 69.3 71.0 71.8 73.7 74.3 71.5 69.6 74.5 75.8 Net current earnings before income taxes.... 30.7 29.0 28.2 26.3 25.7 28.5 30.4 25.5 24.2 Net losses including transfers (or recoveries and profits-T).................................................................. 3.0 2.9 4.6 4.7 6.5 9.5 7.1 6.2 5.5 Taxes on net income........................................................ 11.0 9.7 8.1 6.4 5.5 5.2 7.3 5.8 5.0 Net income after taxes.................................................... 16.7 16.4 15.5 15.2 13.7 13.8 16.0 13.5 13.7 Rates of return on securities and loans: Return on securities: Interest on U. S. Govt, securities.............................. 3.22 3.38 3.63 3.69 4.02 3,59 3.60 3.94 4.20 Interest and dividends on other securities............ 2.95 2.94 3.01 3.11 3.29 3.45 3.40 3.37 3.17 Net losses (or recoveries and profits+)1.............. + •21 + .11 .08 .02 .52 1.29 1.27 .50 .26 Return on loans: Revenue on loans.............................................................. 5.93 5.87 5.88 5.85 6.24 5.68 5.62 6.33 6.53 Net losses (or recoveries +)1...................................... . 12 .16 . 14 .16 .19 . 17 .11 .18 .21 Distribution of assets: Percentage of total assets: U. S. Govt, securities,..................................................... 22.6 20.3 17.7 15.3 13.1 7.8 11.1 11.0 17.8 Other securities.................................................................... 9.2 10.4 11.2 11.6 11.9 9.8 10.5 11.1 13.8 Loans........................................................................................ 46.8 48.8 50.8 53.0 54.9 56.3 58.4 56.6 52.3 Cash assets................................................................... 18.8 17.9 17.6 17.3 17.1 21.3 16.9 18.4 14.0 Other assets........................................................................... 2.6 2.6 2.7 2.8 3.0 4.8 3.1 2.9 2.1 Other ratios: Total capital accounts to—• Total assets........................................................................... 8.2 8. 1 8. 1 8.0 7.9 8.4 8.0 7.7 7.9 Total assets less U. S. Govt, securities and cash assets......................................................................... 14.0 13.0 12.5 11.9 11.4 11.8 11. 1 H.O 11.6 Total deposits................................................................. 9.3 9.2 9.2 9. 1 9.1 10.2 9.3 8.8 8.8 Time to total deposits.......................................................... 35.7 38.6 40.8 42.8 44.8 36.7 40.5 45.6 48.1 Interest on time deposits to time deposits................ 3.23 3.34 3.47 3.73 4.11 5.08 4.57 4.14 3.72 Number of banks......................................................................... 6,047 6,108 6,225 6,221 6,150 12 11 169 5,958 i Net losses is the excess of (1) actual losses charged against net income an equally important influence on the result. In the ratios based on plus losses charged against valuation reserves over (2) actual recoveries aggregates presented here, the experience of those banks in each group and profits credited to net income plus recoveries credited to valuation whose figures are largest have a much greater influence than that of the reserves; net recoveries and profits is the reverse. Transfers to and from many banks with smaller figures. Ratios based on aggregates show valuation reserves are excluded. combined results for the banking system as a whole, and, broadly speak­ Note.—The ratios in this and the following 3 tables were computed ing, are the more significant for purposes of general analyses of credit from the dollar aggregates shown in preceding tables. Many of these and monetary problems, while averages of individual ratios are useful ratios vary substantially from the average of individual bank ratios, primarily to those interested in studying the financial results of operations which were shown in the April Bull., in which each bank’s figures— of individual banks. regardless of size or amount—are weighted equally and in general have Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

868 MEMBER BANKS, 1966 MAY 1967 INCOME RATIOS OF MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item Boston Y N o e r w k P p d h h e il i l a a ­ ­ C l l a e n v d e­ m R o ic n h d ­ la A n t t ­ a c C a h g i o ­ Lo S u t. is n M o e l a i i n s p ­ ­ K C s a a it n s y ­ Dallas F c S i r s a a c n n o - ­ Summary ratios: Percentage of total capita/ accounts: Net current earnings before income taxes. 18.3 15.2 16.2 15.5 18.0 16.7 17.0 15.6 16.5 15.8 14.9 16.5 Net income before related taxes.................... 14.2 10.6 13.3 11.2 14.4 12.9 12.8 12.9 13.0 12.6 11.5 11.8 Net income................................................................. 9.2 7.9 9.3 8.4 9.6 9.1 9.4 9.3 9.1 8.6 8.2 8.1 Cash dividends declared...................................... 4.9 4.9 5.1 4.2 4.5 3.6 3.8 3.8 4.6 3.7 4.2 4.9 Percentage of total assets: Total operating revenue...................................... 5.54 4.67 5.04 4.89 5.20 5.02 4.88 4.57 5.16 4.91 4.58 5.55 Net current earnings before income taxes. 1.63 1.23 1.35 1.35 1.47 1.32 1.22 1.30 1.26 1.39 1.21 1.17 Net income................................................................. .82 .64 .77 .74 .79 .72 .68 .78 .70 .76 .67 .58 Sources and disposition of income: Percentage of total operating revenue: Interest and dividends on: U.S. Govt, securities........................................ 7.9 7.5 10.9 13.3 12.2 13.4 13.5 15.1 14.2 14.0 12.4 7.8 Other securities....................................... 6.5 8.3 7.5 9.2 6.6 7.9 8.3 8.7 8.2 6.9 8.6 7.0 Revenue on loans................................................... 67.1 70.8 68.4 66.8 69.2 66.0 67.1 66.5 65.2 67.0 69.2 72.0 Service charges on deposit accounts............. 5.3 2.9 3.6 3.7 5.5 5.9 3.2 3.7 5.2 5.5 4.2 6.7 Ail other revenue.................................................... 13.2 10.5 9.6 7.0 6.5 6.8 7.9 6.0 7.2 6.6 5.6 6.5 Total revenue........................................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages.................................................. 23.8 18.6 20.7 18.5 23.0 22.6 18.9 20.7 20.4 23.3 20.1 22.3 Officer and employee benefits.......................... 3.8 3.6 3.6 2.6 3.0 3.1 3.0 2.9 3.1 2.8 2.5 3.0 Interest on time deposits.................................... 22.0 34.2 29.8 34.0 26.4 26.5 35.4 27.6 32.5 25.7 29.5 37.i Net occupancy expense...................................... 4.6 4.4 4.3 3.2 4.0 4.0 3.6 3.8 3.7 4.1 4.0 4.4 Other current expenses........................................ 16.3 12.8 14.8 14.2 15.2 17.5 14.0 16.7 15.8 15.8 17.4 12.1 Total expenses..................................................... 70.5 73.6 73.2 72.5 71.6 73.7 74.9 71.7 75.5 71.7 73.5 78.9 Net current earnings before income taxes...................................................................... 29.5 26.4 26.8 27.5 28.4 26.3 25.1 28.3 24.5 28.3 26.5 21.1 Net losses including transfers (or recoveries and profits 4-).................................... 6.7 8.0 4.7 7.5 5.6 5.9 6.2 5.0 5.3 5.7 5.9 6.0 Taxes on net income............................................. 8.0 4.6 6.7 5.0 7.6 6.0 5.0 6.4 5.7 7. 1 6.0 4.7 Net income after taxes........................................ 14.8 13.8 15.4 15.0 15.2 14.4 13.9 16.9 13.5 15.5 14.6 10.4 Rates of return on securities and loans: Return on securities: Interest on U. S. Govt, securities.................. 3.96 3.75 4.02 4.15 4.23 4.15 4.01 4.19 4.33 4.27 4.17 3.92 Interest and dividends on other securities. 3. 16 3.34 3.17 3.20 3.22 3.42 3.31 3. 15 3.24 3.07 3.21 3.42 Net losses (or recoveries and profits-]-)1 • • .58 .88 .27 .45 .40 . 19 .56 .34 .44 .28 .27 .41 Return on loans: Revenue on loans.................................................. 6.43 5.88 6.19 6.07 6.55 6.64 6.09 6.10 6.46 6.43 6.31 6.72 Net losses (or recoveries-!-)1............................ .20 . 18 . 15 .13 . 14 .26 . 15 . 13 .07 .23 .29 .24 Distribution of assets; Percentage of total assets: U. S. Govt, securities....................... .................. 11.0 9.4 13.6 15.7 15.0 16.2 16.4 16.5 16.9 16. 1 13.7 11.0 Other securities........................................................ 11.4 11.7 11.9 14.0 10.6 11.5 12.2 12.6 13.0 11.0 12.3 11.3 Loans............................................................................. 57.8 56.2 55.8 53.8 55.0 49.9 53.7 49.9 52.1 51.1 50.2 59.5 Cash assets................................................................. 17. 1 18.7 16.3 14.6 17.2 19.9 15.4 19.1 15.8 19.7 20.9 14.5 Other assets............................................................... 2.7 4.0 2.4 1.9 2.2 2.5 2.3 1.9 2.2 2.1 2.9 3.7 Other ratios: Total capital accounts to— Total assets................................................................ 8.9 8.1 8.3 8.7 8.2 7.9 7.2 8.3 7.6 8.8 8.2 7.1 Total assets less U. S. Govt, securities and cash assets................................................... 12.4 11.3 11.9 12.5 12.1 12.4 10.6 12.9 11.4 13.7 12.5 9.6 Total deposits............................................................ 10.4 9.6 9.5 9.8 9.2 8.9 8.1 9.3 8.5 9.9 9.2 8.0 Time to total deposits............................................... 34.4 41.2 46.4 51 .0 40.3 37.6 48.8 37.6 47.8 36. 1 37.9 55.6 Interest on time deposits to time deposits... 4. 13 4.62 3.67 3.68 3.84 3.96 3.97 3.77 3.91 3.91 4.02 4.18 Number of banks............................................................... 249 400 387 498 399 524 995 480 494 835 673 216 1 Net losses is the excess of (I) actual losses charged against net income reserves; net recoveries and profits is the reverse. Transfers to and from plus losses charged against valuation reserves over (2) actual recoveries valuation reserves are excluded. and profits credited to net income plus recoveries credited to valuation Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 MEMBER BANKS, 1966 869 INCOME RATIOS OF RESERVE CITY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C la le n v d e­ m R o ic n h d ­ la A n t t ­ a c C a h g i o ­ Lo S u t. is n M o e l a i i n s p ­ ­ K C s a a it s n y ­ Dallas F c S i r s a a c n n o ­ Summary ratios: Percentage of total capital accounts : Net current earnings before income taxes. 20.0 15.0 18.4 15.5 19.2 16.5 16.1 15.3 17.2 14.9 13.9 17.0 Net income before related taxes.................... 15.6 10.3 15.1 10.4 15.4 13.7 12.0 13.4 12.9 12.4 11.5 12.3 Net income................................................................ 9.2 9.3 9.7 7.8 10.3 9.5 9.7 9.6 8.4 8.2 7.9 8.4 Cash dividends declared..................................... 5.3 6.5 6.0 4.6 5.1 4.1 4.3 4.4 4.7 4.2 4.9 5. 1 Percentage of total assets: Total operating revenue...................................... 5.54 5.42 5.13 4.88 5.07 4.78 4.77 4.36 4.85 4.54 4.13 5.47 Net current earnings before income taxes. 1.85 1.06 1.44 1.42 1.51 1.36 I . 10 1.31 1.37 1.36 1.16 1.16 Net income............................................................... .85 .65 .76 .72 .81 .78 .66 .82 .67 .74 .66 .58 Sources and disposition of income: Percentage of total operating revenue: Interest and dividends on— U.S. Govt, securities........................................ 5.8 7.9 7.1 9.7 10.8 10.2 10.3 9.7 8. 1 9.7 10.2 7.3 Other securities................................................... 4.9 10.3 4.9 9.5 6.2 6.8 8.4 8.2 6.2 6.8 8.4 7.2 Earnings on loans.................................................. 66.0 72.9 71.2 69.0 69.5 70.0 70.7 71.2 70.6 70.6 72.6 72.3 Service charges on deposit accounts............ 2.2 4.5 3.5 2.9 5.6 4.5 3.4 3.3 2.8 3.0 1.5 6.6 All other revenue................................................... 21.1 4.4 13.3 8.9 7.9 8,5 7.2 7.6 12.3 9.9 7.3 6.6 Total revenue..................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.0 100.0 Salaries and wages................................................ 22.4 20. 1 21.3 17.4 22.6 21.7 19.4 19.2 19.1 21.1 15.4 21.8 Officer and employee benefits ......................... 3.5 3.1 4.4 2.6 3.0 3.4 2.9 3.2 3.1 3.0 2.5 3.0 Interest on time deposits.................................. 19.4 40.5 26.2 34.5 25.2 24.7 36.6 25.2 27.8 26.0 32.9 38.3 Net occupancy expense....................................... 4.0 4.3 4.5 3.1 4.3 3.8 3,9 3.6 3.4 4.0 2.6 4.2 Other current expenses....................................... 17.2 12.4 15.6 13.3 15.1 18.1 14.1 18.9 18.4 16.1 18.4 H.4 Total expenses................................................... 66.5 80.4 72.0 70.9 70.2 71.7 76.9 70.1 71.8 70.2 71.8 78.7 Net current earnings before income taxes........................................................... 33.5 19.6 28.0 29.1 29.8 28.3 23. 1 29.9 28.2 29.8 28.2 21.3 Net losses including transfers (or recoverjes and profits +).................................. 7.5 6.2 5. 1 9.6 5.9 4.8 6.0 3.6 7.0 5.1 5.0 5.9 Taxes on net income............................................ 10.7 1.3 8. 1 4.8 7.9 7.3 3.2 7.4 7.4 8.4 7.3 4.8 Net income after taxes....................................... 15.3 12.1 14.8 14.7 16.0 16.2 13.9 18.9 13.8 16.3 15.9 10.6 Rates of return on securities and loans: Return on securities: Interest on U.S. Govt, securities.................... 3.52 4.13 4.20 4.08 4.21 3.79 3.85 4.H 4. 18 4.20 3.72 3.85 Interest and dividends on other securities. 3.19 3.43 3.25 3.23 3.21 3.51 3.57 3.27 3. 12 3.34 3.38 3.44 Net losses (or recoveries and profits +)1. .66 .32 .46 .64 .62 .28 .59 .63 .90 .45 .43 .41 Return on loans: Earnings on loans.................................................. 6.27 6.94 6.19 5.99 6.34 6.49 6. 16 5.80 6.11 5.99 5.84 6.65 Net losses (or recoveries +) 1......................... .26 .53 . 15 . 13 .11 . 18 .18 .08 .10 .18 . 19 .21 Distribution of assets: Percentage of total assets: U.S. Govt, securities....................................... 9.2 10.4 8.7 11.6 13.0 12.9 12.7 10,3 9.5 10.5 H.3 10.4 Other securities . ..................................................... 8.5 16.3 7.8 14.4 9.8 9.2 11.3 10.9 9.6 9.2 10.3 11.4 Loans........................................................................... 58.3 56.9 59.0 56. 1 55.5 51.6 54.7 53.6 56.0 53.5 51,3 59.6 Cash assets................................................................ 20.5 13.4 21.5 15.8 19.4 23.7 19.2 23.0 22.8 24.2 23.7 14.9 Other assets. ............................................................. 3.5 3.0 3.0 2.1 2.3 2.6 2. 1 2.2 2.1 2.6 3.4 3.7 Other ratios: Total capital accounts to— Total assets................................................................. 9.3 7.1 7.8 9.2 7.9 8.2 6.8 8.6 7.9 9.1 8.4 6.8 Total assets less U.S. Govt, securities and cash assets................................................... 13.2 9.3 11.2 12.6 11.6 13.0 10.0 12.8 11.7 13.9 12.8 9.2 Total deposits................................................. 11.0 8.0 8.9 10.4 8.8 9.3 7.6 9.8 9.0 10.3 9.6 7.7 Time to total deposits.............................................. 27,7 58.6 36.4 49.4 36.4 32.6 47.4 31.5 35.0 32.0 37,3 56.3 Interest on time deposits to time deposits... 4.61 4.22 4.23 3.88 3.95 4.10 4.10 4.01 4.38 4. 17 4.18 4.21 Number of banks............................................................... 5 3 6 16 16 25 15 15 8 22 17 21 1 Net losses is the excess of (1) actual losses charged against net income Note,—Figures do not include reserve city banks in the cities of New plus losses charged against valuation reserves over (2) actual recoveries York and Chicago. and profits credited to net income plus recoveries credited to valuation reserves; net recoveries and profits is the reverse. Transfers to and from valuation reserves are excluded. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

870 MEMBER BANKS, 1966 MAY 1967 INCOME RATIOS OF COUNTRY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C la le n v d e­ m R o ic n h d ­ la A n t t ­ a c C a h g i o ­ Lo S u t. is n M o e l a i i n s p ­ ­ K C s a a it s n y ­ Dallas F c S i r s a a c n n o ­ Summary ratios: Percentage of total capital accounts: Net current earnings before income taxes. 17.4 13.2 14.7 15.4 16.8 16.8 16.6 15.9 16.2 16.3 15.8 14.3 Net income before related taxes.................... 13.4 12.1 12.2 12.6 13.5 12.3 12.4 12.3 13.0 12.7 11.6 9.8 Net income................................................................. 9,2 9.6 9.0 9.4 9.0 8.9 9.3 9.0 9.5 8.9 8,5 6,8 Cash dividends declared.................................... 4.7 4.5 4.4 3.6 3.8 3.3 3.3 3.2 4.6 3.4 3.5 3,7 Percentage of total assets: Total operating revenue..................................... 5.53 5. 19 4.98 4.91 5.34 5.18 5.03 4.77 5.3C 5.14 5.02 5.94 Net current earnings before income taxes. 1.51 1.14 1.29 1.24 1.44 1.30 1.15 1.29 1.21 1.41 1.26 1.22 Net income................................................................ .80 .72 .79 .76 ,77 .69 .64 .73 ,71 ,77 .68 .58 Sources and disposition el income: Percentage of total operating revenue: Interest and dividends on— U.S. Govt, securities....................................... 9.0 10.7 13.9 18.4 13,7 15.4 18.2 19.7 16.9 16.4 14,2 10.0 Other securities.................................................. 7.4 9.9 9.6 8.7 6.9 8.6 8.7 9.1 9.0 6.9 8.7 6. 1 Revenue on loans.................................................. 67.7 68.5 66.2 63.9 69.0 63.4 63.8 62.5 62.8 65.0 66,5 70.4 Service charges on deposit accounts............ 7.0 5.6 3.7 4.7 5.3 6.9 4.7 4. 1 6.3 7.0 6.4 7.3 All other revenue,.................................................. 8.9 5.3 6.6 4.3 5.1 5.7 4.6 4.6 5.0 4.7 4.2 6.2 Total revenue.................................................... 100.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Salaries and wages................................................. 24.6 21.8 20.3 20.0 23.4 23.2 20.6 22. 1 21.0 24.5 23.7 24.4 Officer and employee benefits......................... 4.0 3.5 3.0 2.6 2.9 3.0 2.8 2.7 3.1 2,7 2.5 3.0 Interest on time deposits................................... 23.4 33.6 32.6 33.2 27.7 27.7 36.0 29.6 34.6 25.5 26.8 31,7 Net occupancy expense....................................... 4.9 4.8 4.0 3.5 3.8 4. 1 3.8 3,9 3,8 4.1 5.2 5. 1 Other current expenses........................................ 15.9 14.4 14.2 15.4 15.3 17.0 14.0 14.8 14.7 15.7 16.6 15.3 Total expenses..................................................... 72.8 78. 1 74. 1 74.7 73.1 75.0 77.2 73,1 77.2 72.5 74.8 79.5 Net current earnings before income taxes...................................................................... 27.2 21.9 25.9 25.3 26.9 25.0 22.8 26.9 22.8 27.5 25.2 20.5 Net losses including transfers (or recoveries and profits-!-)................................... 6.2 4.5 4.5 4.6 5.3 6.6 5.7 6.1 4.5 6. 1 6.6 6.4 Taxes on net income............................................. 6.5 3.5 5,6 5.2 7.2 5.1 4.3 5.5 4.9 6.4 5.0 4.3 Net income after taxes................................ 14.5 13.9 15.8 15.5 14.4 13.3 12.8 15.3 13.4 15.0 13.6 9.8 Rates of return on securities and loans: Return on securities: Interest on U.S. Govt, securities.................... 4. 14 3.99 3.96 4.21 4.25 4,32 4.20 4.22 4.37 4.30 4.47 4.18 Interest and dividends on other securities. 3.15 3.15 3.14 3.15 3.22 3,38 3.15 3.06 3.28 2.94 3.09 3.36 Net losses (or recoveries and profits T)!. .55 .24 .20 .25 .20 .15 .28 .19 .33 .22 .16 .41 Return on loans: Revenue on loans. ............................................... 6.51 6,35 6. 19 6-20 6.77 6.75 6.41 6.42 6.64 6.73 6.79 7.11 Net losses (or recoveries T) 1......................... . 16 . 18 .15 .14 .17 ,32 . 17 . 18 .05 ,28 ,40 ,38 Distribution of assets: Percentage of total assets: U.S. Govt, securities............................................ 12.0 13.8 17.5 21.4 17.2 18.5 21.8 22.3 20.5 19.7 15.9 14.2 Other securities...................................................... 13.0 16.3 15.2 13.6 11.4 13. 1 13.8 14.2 14.7 12,1 14.2 10.8 Loans............................................................................ 57.5 56.0 53.3 50.6 54.5 48.7 50,1 46.5 50.1 49.6 49.1 58.8 Cash assets................................................................ 15.2 11.9 12,2 12.8 14.8 17.2 12.5 15.4 12.5 16.8 18.3 12.7 Other assets.............................................................. 2.3 2.0 1.8 1.6 2.1 2.5 1.8 1.6 2.2 1.8 2.5 3.5 Other ratios: Total capital accounts to— Total assets................................................................. 8.7 7.5 8.7 8. 1 8.6 7.7 6.9 8.1 7.5 8.7 8.0 8.5 Total assets less U.S. Govt, securities and cash assets................................................... 11.9 10.1 12.4 12.4 12.6 12.0 10.5 12.9 11,1 13.6 12.2 11.6 Total deposits......................................................... 10.0 8.4 9.8 9.0 9.7 8.6 7.6 8.9 8.2 9.6 8.8 9.5 Time to total deposits............................................. 37.9 51.4 54.0 53.2 44.6 40,9 54.5 43.1 53.6 38.7 §8.4 52.4 Interest on time deposits to time deposits... 3.94 3.80 3.38 3.42 3.75 3.89 3.64 3.6! 3,77 3.78 3.87 4.04 Number of banks. ........................................................... 244 385 381 482 383 499 969 465 486 813 656 195 1 Net losses is the excess of (I) actual losses charged against net income reserves; net recoveries and profits is the reverse. Transfers to and from plus losses charged against valuation reserves over (2) actual recoveries valuation reserves are excluded. and profits credited to net income plus recoveries credited to valuation Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Financial Statistics International U.S. balance of payments ............................................................................................................... 872 Foreign trade.......................................................................................................................................... 873 U.S. gold transactions and reserve assets ................................................................................... 874 U.S. position in the IMF .................................................................................................................. 875 International capital transactions of the United States ........................................................... 876 Reported gold reserves of central banks and governments .................................................. 888 Gold production .................................................................................................................................. 889 Money rates in foreign countries ................................................................................................. 890 Arbitrage on Treasury bills ............................................................................................................. 891 Foreign exchange rates .................................................................................................................... 892 Guide to tabular presentation ........................................................................................................ 788 Index to statistical tables.....................................................................................................................899 The tables on international capital transactions of New York, and International Monetary are based on Treasury Department data and on Fund and from foreign central bank statements data reported to that Department by banks and and official statistical bulletins. For some of the brokers in the United States. Other data are series, back data are available in Banking and obtained from the Treasury Department, De­ Monetary Statistics and its Supplements (see partment of Commerce, Federal Reserve Bank list of publications at the end of the Bulletin). 871 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

872 U.S. BALANCE OF PAYMENTS MAY 1967 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1965 1966 Item 1964 1965 1966/’ HI IV 1 II III I Vp 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 *............................. 36,958 38,993 42,910 10,016 10,065 10,480 10,558 10,943 10,929 Merchandise.............................................................................. 25,297 26,276 29,180 6,826 7,027 7,154 7,098 7,426 7,502 Military sales.............................................................................. 747 844 908 199 216 198 260 215 235 Transportation......................................................................... 2,324 2,415 2,585 617 632 640 627 671 647 Travel............................................................................................. 1,095 1,212 I ,417 305 330 333 337 373 374 Investment income receipts, private.............................. 4,932 5,389 5,585 1,321 1,176 1 ,384 1,427 1 ,436 1,338 Investment income receipts, Govt.................................. 460 512 595 149 78 148 148 149 150 Other services............................................................................ 2,103 2,345 2,640 599 606 623 661 673 683 Imports of goods and services—Total................................ -28,468 -32,036 -37,614 -8,245 -8,540 -8,898 -9,175 -9,737 -9,804 Merchandise............................................................................... -18,621 -21,488 -25,507 -5,595 -5,756 -5,980 -6,220 -6,639 -6,668 Military expenditures............................................................ -2,834 -2,881 -3,649 -745 -771 -854 -899 -934 -962 Transportation......................................................................... -2,462 -2,691 -2,903 -661 -706 -719 -712 -725 -747 Travel............................................................................................. -2,201 -2,400 -2,623 -603 -614 -642 -643 -664 -674 Investment income payments.......................................... -1,404 -1,646 -1,868 -411 -458 -436 -437 -510 -485 Other services.............................................................. -946 -930 -1,064 -230 -235 -267 -264 -265 -268 Balance on goods and services 1............................................. 8,490 6,957 5,296 1,771 1,525 1,582 1,383 1,206 1,125 Remittances and pensions......................................................... -879 -994 -992 -244 -235 -236 -236 -277 -243 1. Balance on goods, services, remittances and pensions.................................................................................. 7,611 5,963 4,304 1,527 1,290 1,346 1,147 929 882 2. U.S. Govt, grants and capital flow, net....................... -3,560 -3,375 -3,396 -743 -881 -957 -952 -797 -690 Grants,2 loans, and net change in foreign currency holdings, and short-term claims.............. -4,263 -4,277 -4,623 -1,117 -1,030 -1,156 -1,155 -1,201 -1,111 Scheduled repayments on U.S. Govt, loans. .. 580 681 799 191 126 196 196 178 229 Nonscheduled repayments and selloffs................. 123 221 428 183 23 3 7 226 192 3. U.S. private capital flow, net............................................ -6,523 -3,690 -3,911 -827 -912 -928 -1,094 -748 -1,141 Direct investments............................................................ -2,416 -3,371 -3,363 -569 -731 -687 -976 -737 -963 Foreign securities............................................................... -677 -758 -426 -285 -209 -324 6 -69 -39 Other long-term claims: Reported by banks...................................................... -941 -231 329 -58 126 122 -33 84 156 Reported by others...................................................... -343 -91 -116 -20 -71 -17 -53 -29 -17 Short-term claims: Reported by banks.................................................... -1,523 325 -68 51 109 143 -91 20 -140 Reported by others...................................................... -623 436 -267 54 -136 -165 53 -17 -138 4. Foreign capital flow, net, excluding change in liquid assets in U.S................................................ 685 194 2,168 -251 251 289 972 243 664 Long-term investments................................................... 109 -149 1,912 -235 110 298 986 96 532 Short-term claims............................................................. 113 146 246 39 44 39 57 92 58 Nonliquid claims on U.S. Govt, associated with: Military contracts......................................................... 228 314 300 -16 149 71 -46 69 206 U.S. Govt, grants and capital............................... 50 -85 -229 -34 -18 -64 -1 -12 -152 Other specific transactions...................................... 208 -25 - 12 -5 -28 -2 2 21 -33 Other nonconvertible, nonmarketable, medium-term U.S. Govt, securities3....................... -23 -7 -49 * -6 -53 -26 -23 53 5. Errors and unrecorded transactions.............................. -1,011 -429 -589 -240 -80 -294 -195 173 -273 Balances A. Balance on liquidity basis Seasonally adjusted (=14-2+3 + 4 + 5)............... -2,798 -1,337 -1,424 -534 -332 -544 -122 -200 -558 Less: Net seasonal adjustments.............................. 472 3 -496 27 499 -30 Before seasonal adjustment.......................................... -2,798 -1,337 -1,424 -1,006 -335 -48 -149 -699 -528 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted................................ -2,798 -1,337 -1,424 -534 -332 -544 -122 -200 -558 Plus: Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad..................................... 1,454 116 2,731 707 -546 232 499 1,166 834 Other private residents of foreign countries.. 345 306 224 65 50 138 45 86 -45 International and regional organizations other than IMF....................................................... -245 -290 -525 -24 -173 -35 -362 9 -137 Less: Change in certain nonliquid liabilities to foreign central banks and govts.................... 302 100 735 -18 157 25 263 109 338 Balance B, seasonally adjusted.................................. -1,546 -1,305 271 232 -1,158 -234 -203 952 -244 Less: Net seasonal adjustments............................... 508 -33 -636 182 525 — 71 Before seasonal adjustment........................................... -1,546 -1,305 271 -276 -1,125 402 -385 427 -173 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 U.S. BALANCE OF PAYMENTS ANO FOREIGN TRADE 873 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1965 1966 Item 1964 1965 1966^ II 1 III III IV I IV* Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis.............................. 2,798 1,337 1,424 1,006 335 48 149 699 528 Change In U.S. official reserve assets (increase, — )............................................... 171 1,222 568 41 271 424 68 82 -6 Gold.................................................................................. 125 n ,665 571 124 119 68 209 m 121 Convertible currencies............................................ -220 -349 -540 -413 178 222 -163 -426 -173 IMF gold tranche position................................... 266 4-94 537 330 -26 134 22 335 46 Change In liquid liabilities to all foreign accounts 2,627 115 856 965 64 -376 81 617 534 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. -nc, securities 5...................................................... 375 123 -945 122 -50 -366 -226 -177 Marketable U.S. Govt, bonds and notes 5. -59 -20 -245 -2 -19 -5 6 -254 8 Deposits, short-term U.S. Govt, securities, etc.................................................................. 757 -154 -561 125 740 -611 206 -166 10 34 177 8 26 131 18 28 Commercial banks abroad....................... 1,454 116 2,731 697 -539 404 316 1,162 849 Other private residents of foreign countries. 345 306 224 72 48 109 66 96 -47 Internationa* and regional organizations other than IMF....................................................... -245 -290 -525 -57 -142 -38 -355 -23 -109 B. Official reserve transactions............................................. 1,546 1,305 -271 276 1,125 -402 385 -427 173 Change in U.S. official reserve assets (increase, —)........................*..................._....................... 171 1,222 568 41 271 424 68 82 -6 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)........................................................................ 1,073 -17 -1,574 253 697 -851 54 -618 -159 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S private organizations......................... 148 -38 736 -16 28 43 284 86 323 Of U.S. Govt............................................................ 154 138 -1 -2 129 -18 -21 23 15 1 Excludes transfers under military grants. 5 With original maturities over 1 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 $259 million payment of gold portion of increased U.S. (debits); absence of sign indicates net receipts (credits). subscription to IMF. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1964 1965 1966 1967 1964 1965 1966 1967 1964 1965 1966 1967 Month: Jan.................... 2,040 3 1,228 2,274 2,620 1,418 31,199 1,948 2,296 622 3 28 327 325 Feb........................... 2,058 31,623 2,374 2,601 1,459 31,606 2,005 2,204 599 3 17 369 397 Mar................ 2,075 3 2,739 2,569 2,570 1,518 31,861 2,068 2,185 557 5 878 501 385 tliiy......................... 2,061 3 2,406 2,359 1,537 31,811 2,109 524 3 595 250 2,047 3 2,299 2,411 1,530 31,797 2,063 517 3 503 348 June......................... 2,077 3 2,235 2,490 ..................... 1,514 31,848 2,135 .................... 563 3 386 354 ......... July.......................... 2,119 2,300 2,456 1,573 41,742 2,205 546 4 558 251 Aug......................... 2,100 2,329 2,455 1,608 1,825 2,113 492 504 342 Sept.......................... 2,261 2,291 2,542 1,563 1,858 2,301 698 433 240 Oct.................. 2,156 2,349 2,583 1,551 1,885 2,262 605 464 320 Nov.......................... 2,206 2,378 2,486 1,698 1,941 2,192 3 508 438 295 Dec................. 2,426 2,362 2,415 ...................1.,642 1,911 2,231 3 784 451 184 .................... Quarter: I... 6,173 35,589 7,216 4,395 3 4,666 6,020 1,778 3 923 1,196 . 6,185 36,940 7,259 4,581 35,456 6,306 1,604 31,484 953 Ill............................. 6,480 6,920 7,453 4,744 45,425 6,618 1,736 41,495 834 IV.............................. 3 6,788 7,090 7,484 3 4,891 5,736 6,685 3 1,897 1,353 799 Years.,.,,............... 25,671 26,700 29,395 .................... 18,684 21,366 25,550 ..................6..,987 5,334 3,845 .................... 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

874 U.S. GOLD TRANSACTIONS AND RESERVE ASSETS MAY 1967 3. 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) 1966 Area and country 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 I II III IV Western Europe: Austria...................................... -84 -83 -143 -82 -55 -100 -25 -25 Belgium..................................... 3 -329 -39 -141 -144 -63 -40 -83 France...................................... -266 -173 -456 -518 -405 -884 -601 -103 -221 -277 Germany, Fed, Rep. of. . -34 -23 -225 Italy,........................................... -349 100 200 -80 -60 -60 Netherlands........................ . 25 -261 -30 -249 -25 -60 -35 Spain.......................................... 31 32 -114 -156 -146 -130 -32 -180 Switzerland,........................... -215 20 -324 -125 102 -81 -50 -2 7 -20 United Kingdom................. -900 -350 -550 -306 -387 329 618 150 80 -19 -7 126 -20 Bank for Inti. Settlements -178 -32 -36 -23 Other.......................................... 8 -41 -48 -96 -53 -12 -7 -37 -50 -34 -4 -12 Total 68 -2,326 -827 -1,718 -754-1,105 -399 -88 -1,299 -659 -174 -221 -172 -92 Canada 5 190 200 100 50 50 Latin American republics: Argentina............................. 75 67 -50 -90 85 -30 -39 -28 Brazil....................................... -2 -2 57 72 54 25 -3 Colombia.............................. -6 38 10 29 7 7 Venezuela.............................. 65 -25 Other........................................ 6 2 -35 -42 -17 '-5 -9 -13 -6 -6 -3 -5 8 Total 81 69 19 -100 -109 175 32 56 17 -41 -4 -34 -3 Asia: Japan -30 -157 -15 -56 -56 Other. 18 -4 -28 -97 i -101 2 -93 12 3 -24 -30 -25 -2 -12 10 Total 18 -34 -186 -113 -101 -93 12 3 -24 -86 -82 -2 -12 10 All other, -3 -5 -38 -6 -36 -7 -16 -22 -9 -8 -4 Total foreign countries. 172 -2,294 -998 -1,969 -970 -833 -392 -36 -1,322 -608 -165 -185 -172 -86 IntL Monetary Fund 600 J -44 4 300 150 5-225 6 177 6 131 6 18 629 Grand total 772 -2,294 -1,041 -1,669 -820 -833 -392 -36 -1,547 -431 -34 -167 -143 -86 1 Includes sales of $21 million to Lebanon and $48 million to Saudi million in 1956, and $300 million in 1959 and in I960) 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. s 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 1(b) to table below. 4 IMF sold to the United States a total of $800 million of gold ($200 4. U.S. GOLD STOCK, HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES, AND RESERVE POSITION IN IMF (In millions of dollars) Gold stock 1 Con­ Reserve Gold stock 1 Con­ End of year re T s o e t r a v l e v fo e r r e ti i b g l n e pos in ition End of month re T s o e t r a v l e v fo e r r e ti i b g l n e p R o e s s in i e ti r o v n e assets Total 2 Treasury currencies IMF 3 assets Total 2 Treasury curren­ IMF 3 cies 4 1957............................... 24,832 22,857 22,781 1,975 1966—Apr.........1..4...,.9..16 13,668 13,632 522 726 1958............................... 22,540 20,582 20,534 1,958 May............... 14.90S 13,582 13,532 628 695 June............... 14,958 13,529 13,433 722 707 1959............................... 21,504 19,507 19,456 1,997 July................ 15,148 13,413 13,332 1,093 642 1960............................... 19,359 17,804 17,767 1,555 Aug................. 15,015 13,319 13,259 1,299 397 Sept............... 14,876 13,356 13,258 1,148 372 1961............................... 18,753 16,947 16,889 116 1,690 Oct........ 14,880 13,311 13,257 1,213 356 1962............................... 17,220 16,057 15,978 99 1,064 Nov................ 14,715 13,262 13,159 1,108 345 Dec................. 14,882 13,235 13,159 1,321 326 1963 ............................... 16,843 15,596 15,513 212 1,035 1964............................... 16,672 15,471 15,388 432 769 1967—Jan........1...4...,.1...96 13,202 13,157 645 349 Feb................. 13,998 13,161 13,107 480 357 1965............................... 15,450 513,806 513,733 781 ’863 Mar................ 13,855 13,184 13,107 314 357 1966............................... 14,882 13,235 13,159 1,321 326 Apr................. 13,906 13,234 13,109 315 357 1 Includes (a) gold sold to the United States by the International Mon­ 4 For holdings of F.R. Banks only, see pp, 798 and 800. etary Fund with the right of repurchase, and (b) gold deposited by the 5 Reserve position includes, and gold stock excludes, $259 million gold IMF to mitigate the impact on the U.S. gold stock of foreign purchases subscription to the Fund in June 1965 for a U.S. quota increase which for the purpose of making gold subscriptions to the Fund under quota became effective on Feb, 23, 1966. In figures published by the Fund from increases. For corresponding liabilities, see Table 6. June 1965 through Jan. 1966, this gold subscription was included in the 2 Includes gold in Exchange Stabilization Fund. U.S. gold stock and excluded from the reserve position. 3 In accordance with Fund policies the United States has the right to draw Note.-—See Table 18 for gold held under earmark at F.R. Banks for foreign currencies equivalent to its reserve position in the Fund virtually foreign and international accounts. Gold under earmark is not included automatically if needed. Under appropriate conditions the United States in the gold stock of the United States. could draw additional amounts equal to the U.S. quota. See Table 5. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 U.S. POSITION IN THE IMF 875 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by other countries reserve position Period with IMF in IMF P s t u d a io b y o n m o s ll s c a f e r r n i i s n p ts ­ by s g N I a o M l e e ld t s F * D c f r c o a u i r e w r o e r s f i e i g n n 2 n g ­ s I i M d n o c F i l o n la m n rs e e t D d ra o o w lla f in rs gs R m e e i p n n a ts y ­ c T h o an ta g l e Amount P q e U u r o . o c S f t e a . nt p ( e e r n io d d o ) f 3 dollars 1946-1957........................................ 2,063 4594 —45 -2,664 827 775 775 28 1,975 j 958......................................... —2 — 252 271 17 792 29 1 ^958 (959 ............................ 1,031 2 —139 442 1,336 2,128 52 1 997 I960........................................ 11 -149 580 ’442 2^570 62 1,555 1961 ...................................... 150 16 -822 521 — 135 2,435 59 U690 i%2........................................ 17 -110 719 626 3,061 74 1,064 1963........................................ 16 -194 207 29 3,090 75 i ^035 1964........................................ 525 18 -282 5 266 3^356 81 '769 1965........................................ 435 12 -282 165 3,521 85 5863 1966........................................ 776 680 15 — 159 i 1,313 4 834 94 326 1966—Apr........................................... 30 -1 -26 3 4,434 86 726 30 4 — 2 32 87 695 1 -14 -13 4,453 86 707 July......................................... 71 -6 65 4’518 88 642 282 i — 38 245 4’763 92 397 Sept......................................... 35 i — 12 1 25 4,788 93 372 Oct......................................... 31 i — 16 16 4,804 93 356 12 2 — 3 ii 4 815 93 345 Dec.......................................... 30 — 11 19 4,834 94 326 1967 Jan ......................................... 3 —26 -23 4,811 93 349 Feb .............................. 3 — 10 -7 4,804 93 357 Mar .. .............. 1 — 2 -1 4,803 93 357 Apr,................. 4,803 93 357 1 Represents net Fund sales of gold to acquire U.S. dollars for use in 4 Represents a $600 million IMF gold sale to United States (1957), Fund operations. Does not include transactions in gold relating to gold less $6 million gold purchase by IMF from another member with U.S. deposit or gold investment (see Table 6). dollars (1948). . 2 Represents purchases from the Fund of currencies of other members 5 Includes $259 million gold subscription to the Fund in June 1965 for for equivalent amounts of dollars. The United States has a commitment a U.S. quota increase, which became effective on Feb. 23, 1966. In figures to repay drawings within 3 to 5 years, but only to the extent that the Fund’s published by the Fund from June 1965 through Jan. 1966, this gold sub­ holdings of dollars exceed 75 per cent of the U.S. quo:,i. D •usings of scription was included in the U.S. gold stock and excluded from the dollars by other countries reduce the U.S. commitment to repay by an reserve position. equivalent amount. t 3 Represents the U.S. gold tranche position in the Fund (the U.S. quota Note.—The initial U.S, quota in the IMF was $2,750 million. The U.S. minus the Fund’s holdings of dollars), which is the amount that the United quota was increased to $4,125 million in 1959 and to $5,160 million in States could draw in foreign currencies virtually automatically if needed. February 1966, Under the Articles of Agreement, subscription payments Under appropriate conditions, the United States could draw additional equal to the quota have been made 25 per cent in gold and 75 per cent in amounts equal to its quota. dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

876 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 6. U. S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liabilities to Inti. Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions Official institutions3 Banks and other foreigners regional organizations5 Non­ End market­ of Total Short­ Market­ able Short­ Market­ Short­ Market­ period Total p G o d o s e l ­ i d t 1 i m n G v e o e n l s d t t 2 ­ Total i i p t n l b i i t e o a a e b s r U n r b t y m e k . i r S l s d e ­ . ­ n b G U o a a o o t n b n . e S v d l d e s . t s , 4 c T o b U a r n o i u b e n n v . r l S a y d e e d s . s r ­ t ­ Total i i p t n b l i i t e o a a e b s r U n r b t y m e k . i r S l s e d ­ . ­ n b G a U o a o o b n t n . e S v l d d e s t . s , 4 Total in i p t b l i i t e o a a e U b s r n b r t y . m e S k i r l s e d . ­ ­ 6 n b G a U a o o o b n t n . e S v l d d e s t . s , 4 notes 1957. ’15,825 200 200 n.a. 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958. ’16,845 200 200 n.a. 8,665 n.a. n.a. 5,950 n.a. n.a. 552 n.a. 1959. 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 19608 (20,994 800 800 11,078 10,212 866 7,591 7,048 543 1,525 750 775 121,027 800 800 11,088 10,212 876 7,598 7,048 550 1 ,541 750 791 1961 8 (22,853 800 800 11,830 10,940 890 8,275 7,759 516 1 ,948 703 1,245 122,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1,245 I962& ( (2 2 4 4 , , 0 0 6 6 8 8 8 8 0 0 0 0 8 8 0 0 0 0 1 1 2 2 , , 7 7 4 1 8 4 1 1 1 1 , , 9 9 9 6 7 3 7 75 5 1 1 8 8 , , 3 3 5 5 9 9 7 7, ,9 91 1 1 1 4 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1 1, , 2 2 5 8 0 4 9 9 1 1 1 1 (26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1 ,960 808 1,152 1963 8 126,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 1964* 1 (2 2 8 9 , , 9 0 5 0 1 2 8 8 0 0 0 0 8 80 0 0 0 1 1 5 5 , , 4 4 2 2 8 4 1 13 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 1 1 1 1 , , 0 0 0 5 1 6 1 1 0 0 , , 6 6 8 2 0 5 3 3 7 7 6 6 1 1 , , 7 72 2 2 2 8 8 1 1 8 8 9 9 0 0 4 4 1965. ............. 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1 ,431 679 752 1966--Feb... 28,668 837 37 800 14,461 12,476 1,100 885 11,964 11,468 496 1,406 800 606 Mar. . 28,738 965 165 800 14,389 12,455 1,100 834 It,991 11,499 492 1,393 837 556 Apr... 28,862 981 181 800 14,386 12,527 1,100 759 12,168 11,674 494 1,327 839 488 May.. 28,935 983 183 800 14,618 12,809 1,100 709 12,191 11,706 485 1,143 706 437 June.. 28,819 983 183 800 14,425 12,661 1,106 658 12,373 11,883 490 1,038 605 433 July. . 29,512 984 184 800 14,467 13,031 853 583 12,980 12,483 497 1,081 648 433 Aug. . 29,698 1,003 203 800 14,262 12,903 852 507 13,393 12,872 521 1,040 651 389 Sept.. 29,436 1 ,011 211 800 13,798 12,514 852 432 13,612 13,125 487 1 ,015 626 389 Oct... 30,218 1,01! 211 800 13,967 12,910 852 205 14,249 13,743 506 991 601 390 Nov.. 30,554 1,011 211 800 14,019 12,954 860 205 14,550 14,031 519 974 613 361 Dec. 8. 1 1 2 2 9 9 , , 7 9 8 1 4 4 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 80 0 0 0 1 1 3 3 , , 6 6 0 5 3 9 1 1 2 2 , , 5 4 4 87 3 8 8 6 6 0 0 2 2 5 5 6 6 1 14 4 , , 2 3 0 9 7 4 1 1 3 3 , , 6 86 7 6 9 5 5 2 2 8 8 9 9 0 0 6 7 5 5 8 8 1 2 3 3 2 2 5 5 1967--Jan.. . 28,966 1 ,012 212 800 13,331 12,143 860 328 13,666 13,138 528 957 653 304 Feb”.. 28,912 1,013 213 800 13,349 12,156 865 328 13,694 13,167 527 856 609 247 1 Represents liability on gold deposited by the International Monetary 8 Data on the two lines shown for this date differ because of changes in Fund to mitigate the impact on the U.S, gold stock of foreign purchases reporting coverage. Figures on the first line are comparable with those for the purpose of making gold subscriptions to the IMF under quota in­ shown for the preceding date; figures on the second line are comparable creases. with those shown for the following date. 2 U.S. Govt, obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States Note.—Based on Treasury Dept, data and on data reported to the to acquire income-earning assets. Upon termination of investment, the Treasury Dept, by banks and brokers in the United States. Data correspond same quantity of gold can be reacquired by the IMF. to statistics following in this section, except for minor rounding differences. 3 Includes Bank for International Settlements and European Fund. Table excludes IMF “holdings of dollars” and holdings of U.S. Treasury 4 Derived by applying reported transactions to benchmark data; letters of credit and nonnegotiable, non-interest-bearing special U.S. notes breakdown of transactions by type of holder estimated for 1960-63. held by international and regional organizations. Includes securities issued by corporations and other agencies of the U.S. The liabilities figures are used by the Dept, of Commerce in the statistics Govt., which are guaranteed by the United States. measuring the U.S, balance of international payments on the liquidity 5 Principally the International Bank for Reconstruction and Develop­ basis; however, the balance of payments statistics include certain adjust­ ment and the Inter-American Development Bank. ments to Treasury data prior to 1963 and some rounding differences, and 6 Includes difference between cost value and face value of securities in they may differ because revisions of Treasury data have been incorporated IMF gold investment account. Liabilities data reported to the Treasury at varying times. The table does not include certain nonliquid liabilities include the face value of these securities, but in this table the cost value of to foreign official institutions that enter into the calculation of the official the securities is included under “Gold investment,” The difference, which reserve transactions balance by the Dept, of Commerce. amounted to $32 million at the end of 1966, is included in this column. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for which breakdown by type of holder is not available. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 877 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total Latin End of period c f o o u r n e t ig rie n s E W u e ro s p te e r n 1 Canada A re m p e u r b ic lic a s n Asia Africa cou O n t t h ri e e r s 2 1963..................... ........................................................................ 14 353 8 445 1,789 1,058 2,731 154 176 1964................................................................................................................... 15324 9,220 1 '608 1'238 3,020 160 178 1965................................................................................................................... 15'372 8’608 1,528 1 397 3,300 194 245 1966—Feb..................................................................................................... 14,461 7,674 1,489 1,425 3,439 210 224 Mar................................................................................................... 14’389 7,726 1,433 1,359 3310 218 243 Apr..................................................................................................... 14,386 7 302 1,387 1315 3,519 229 234 May,......................................................................... 14,618 7’822 1,364 1,442 3,532 235 223 •June................................................................................................... 14,425 7'948 1,327 1,221 3,438 237 254 July................................................................................................... 14367 8 184 1,288 1,159 3,378 234 224 Aug................................................................................................. 14,262 8,008 1 ’221 1J53 3,409 252 219 Sept................................................................................................... 13,798 7,585 1,215 1,049 3,458 266 225 Oct............................................................................................. 13,967 7,687 1,196 1 J10 3,465 282 227 Nov........................................ -................................ 14'019 7’758 1,212 1,101 3331 293 224 /13,6O3 7,'488 1,189 1,134 3,287 277 228 Dec. ......................................................................... 113,659 7,488 1,189 1,134 3,343 277 228 1967—Jan...................................................................................................... 13,331 7,236 1,186 1,139 3,253 276 241 Feb.”................................................................................................. 13'349 7,285 1,134 1,167 3,265 255 243 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short-term liabilities to the official institutions 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible nonmarketable U.S. Govt, 3 Data on the two Unes shown for this date differ because of changes securities with an original maturity of more than 1 year. in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional Foreign E p n e d ri o o d f G to r t a a n l d 1 Total 1 Intl.i gio R n e a ­ l2 Total c O ia ff l i­ 3 Other Europe Canada A L m a e t r in ic a Asia Africa O c t o r t i u h e n e s ­ r 1963..................................... 22,877 1,547 1311 136 21,330 12,467 8,863 10,770 2,988 3,137 4,001 241 194 1964^................................... 25,518 1’618 1347 171 23,900 13,220 10,680 12336 2,984 3,563 4,687 238 192 1965.................... 25'551 1 379 I 361 118 24,072 13’066 11,006 11,627 2374 4,027 5,286 280 278 1966—Mar......................... 25,591 1 ,637 I ,522 115 23,954 12.455 11 499 11 660 2 308 4,026 5 359 330 272 Apr........... 25'840 1 '639 1322 117 24'201 12,527 11*674 11 ’ 522 2,460 4 099 5 ’ 526 328 266 May. ......... 26,021 1'506 1 393 113 24 515 12,809 11’706 11’868 2,359 4,149 5’541 336 262 June....................... 25’949 1,405 1,295 110 24 544 12,661 11,883 12331 2,171 3’933 5 470 334 305 July........................ 26,962 1 348 1 338 no 25,514 13,031 12’,483 1 3 349 2,291 3’881 5,393 329 269 Aug........... 27'226 1,451 1,345 106 25’775 12303 12’872 13,785 23 64 3,817 5 305 339 264 Sept................ 27’065 1 '426 1 '299 127 25'639 12,514 13,125 13,534 2,191 3'800 5’484 363 267 Oct............ 28^054 1 ,401 1,275 126 26,653 12,910 13,743 14378 2'400 3,910 5'522 376 268 Nov................ 28'398 1'413 1 395 118 26,985 12'954 14,031 14374 2,456 3,861 5,430 398 266 Dec. 5.................... / ( 2 2 7 7 , , 7 6 3 0 4 4 I 1 ' , , 3 38 8 1 2 1 1, 3 2 7 7 1 1 1 1 1 1 1 0 2 2 6 6 , , 3 2 5 2 3 2 I 1 ? 2 ; , 4 5 8 4 7 3 1 13 3 , , 6 8 7 6 9 6 1 13 4 , 3 9 0 3 6 9 2 2 , , 5 4 0 9 5 8 3 3, , 8 8 8 8 3 3 5 5, , 2 3 5 0 1 6 3 3 8 8 5 7 2 26 6 6 6 1967—Jan........................... 26,734 1353 1399 154 25,281 12343 13,138 13,215 2353 3,918 5321 390 285 Feb.”..................... 26'732 1309 1378 131 25323 12J56 13367 13'334 2,223 3’965 5,138 379 284 Mar. ”........ 26308 1,437 1315 123 25'371 12363 13,008 13,317 2,265 4,063 5,'090 356 278 8a. Europe Ger­ E p n e d ri 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 la e n th d e s r­ Norway Po ga rt l u­ Spain Sweden Rep. of 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...................... 11,627 250 398 305 108 997 1,429 151 1,620 339 323 322 183 647 1966—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 U5 688 July.... 13,349 205 406 295 70 1,169 2,025 131 1,725 344 347 306 138 672 Aug....... 13.785 180 389 271 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..... 14,178 208 418 285 57 1,096 2,423 141 1,447 335 265 320 155 674 Nov........ 14,574 183 462 272 53 1,124 2,571 145 1,367 364 283 343 160 655 114,006 196 420 305 58 1,071 2,583 129 1,410 364 283 358 162 656 113,939 196 420 305 58 1,070 2,538 129 1,410 364 283 358 162 656 1967—Jan.......... 13,215 190 426 315 69 992 2,162 138 1,255 294 246 363 191 609 Feb.”. .. 13,334 182 421 307 69 966 2,375 127 1,208 326 258 373 147 628 Mar. ”.. 13,317 181 410 305 65 948 2,412 HO 1,232 332 274 350 149 615 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

878 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 8a. Europe—Continued 8b. Latin America E p n e d ri o o d f Sw la it n z d er­ Turkey U K d n i o n it m g ed ­ Y sl u a g vi o a ­ W E O u e t r s h o te e p r r e n 6 U.S.S.R. E E O a u t s r h o te e p r r e n Total Ar ti g n e a n­ Brazil Chile Co b lo ia m­ Cuba Mexico {963...................... 906 21 1,483 16 465 2 24 3,137 375 179 143 169 11 669 1964 ................... 1,370 36 1.884 32 358 3 19 3,563 291 258 176 209 12 735 1965............ 1,369 34 2,714 36 369 4 30 4,027 432 383 219 214 10 703 1966—Mar........ 1,456 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 4,149 518 342 205 193 9 716 June.... 1,610 21 3,120 21 353 2 29 3,933 485 330 195 182 10 589 July. 1,696 18 3,350 20 397 4 31 3,881 473 314 198 189 9 566 Aug......... 1,692 26 3,901 27 380 6 29 3,817 489 327 201 182 9 554 Sept........ 1 ,757 24 3,609 32 358 6 32 3,800 474 345 238 186 10 523 Oct.......... 1 ,747 31 4,165 40 333 6 33 3,910 438 365 238 183 10 555 Nov........ 1 ,764 30 4,414 33 314 5 33 3,861 417 362 226 176 9 606 Dec. 5... n 11 , . 8 81 i 1 i 4 4 3 3 3 3 , , 8 81 3 7 9 3 3 7 7 2 2 3 3 4 5 8 8 4 40 0 3 3 , , 8 8 8 8 3 3 4 4 1 1 8 8 2 2 9 9 9 9 2 2 6 6 1 1 1 1 7 7 8 8 8 8 6 6 3 3 2 2 1967—Jan.......... 1,700 38 3,764 35 386 6 36 3,918 414 297 242 170 8 636 Feb.p.., 1,728 29 3,796 37 312 6 37 3,965 412 308 247 162 9 695 Mar, p. . 1,686 30 3,833 36 320 3 27 4,063 459 319 248 174 9 699 8b. Latin America—Continued 8c. Asia E pe n r d io o d f Panama Peru g U u r a u y ­ V zu e e n l e a ­ O L re t . h A p e . . r B B e ah rm a & m ud a a s A S n u N ti r e l i l n e th a s . m & A O L m a t e h t r i e n ic r a Total C M la h a n in i d n a ­ H Ko o n n g g India n d I e n o s ­ i ­ a Israel 1963...................... 129 158 113 591 355 136 93 15 4,001 35 66 51 48 112 1964...................... 99 206 111 734 416 189 114 14 4,687 35 95 59 38 133 1965...................... 120 257 137 738 519 165 113 17 5,286 35 113 84 31 127 1966—Mar........ 135 252 157 701 546 186 127 24 5,359 36 112 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,... 156 247 179 700 534 182 126 19 5,470 35 114 124 49 118 July. . .. 144 230 180 735 541 165 117 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 {56 679 510 179 115 21 5,484 36 135 151 53 115 Oct.......... 148 237 156 738 521 178 121 23 5,522 36 142 151 62 108 Nov...,, 152 236 161 694 517 174 108 24 5,430 36 135 167 60 102 JI 50 249 161 707 522 177 104 17 5,306 36 142 180 54 117 1150 249 161 707 522 177 104 17 5,251 36 142 179 54 117 1967—Jan.......... 147 239 164 750 533 192 108 19 5,121 36 147 198 62 109 Feb.'1... 147 234 167 718 550 198 101 18 5,138 36 140 206 51 113 Mar. ^. 152 257 168 704 538 185 107 45 5,090 36 142 205 46 10O 8c. Asia—Continued 8d. Africa 8e. Other countries -------------- E p n e d ri 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 ) r M oc o co ­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total t A ra u l s ia ­ o A th l e l r 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......................... 3,014 108 304 211 542 718 280 12 17 51 30 170 278 254 24 1966—Mar............ 2,966 116 310 214 627 738 330 14 19 89 16 192 272 232 40 Apr...... 2,959 121 313 217 580 832 328 U 20 89 17 192 266 231 35 May.......... 2,933 114 320 221 585 891 336 8 20 95 15 .97 262 233 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 12 25 63 25 203 269 241 28 Aug............ 2,760 129 316 242 603 902 339 12 35 56 22 215 264 236 28 Sept............ 2,742 134 317 244 612 945 363 13 40 64 15 231 267 240 27 Oct............. 2,685 138 315 246 612 1,028 376 12 41 64 26 232 268 243 25 Nov.,.... 2,629 158 288 238 611 1,007 398 14 38 73 45 229 266 242 24 (2^98 172 286 232 598 79! 387 15 32 71 39 230 266 243 22 Dec.5.. .. 12,671 162 285 228 598 779 385 15 31 71 39 229 266 243 22 1967—Jan.............. 2,563 17! 282 235 610 708 390 13 33 61 33 250 285 262 23 Feb. ^.... 2; 508 181 271 232 635 766 379 13 31 62 22 251 284 258 26 Mar. p... 2,493 178 255 229 658 749 356 13 32 58 34 219 278 252 26 t Data exclude the “holdings of dollars” of the International Monetary follows (in millions of dollars): Total 4-50; Foreign other 4-50; Europe Fund* , , . — 17: Canada 4-1; Latin America 4-26; Asia +49; Africa —9. 2 Latin American, Asian, African, and European regional organiza­ 5 Data on the two lines shown for this date differ because of changes in tions, except Bank for International Settlements and European Fund reporting coverage. Figures on the first line are comparable in coverage which are included in “Europe”. with those shown for the preceding date; figures on the second line are 3 Foreign central banks and foreign central govts, and their agencies, comparable with those shown for the following date. and Bank for International Settlements and European Fund. * Includes Bank for International Settlements and European Fund. 4 Includes revisions arising from changes in reporting coverage as For Note see end of Table 8. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL, CAPITAL TRANSACTIONS OF THE U.S. 879 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 8f. Supplementary data 7 (end of period) 1965 1966 1965 1966 Area or country Area or country Apr. Dec. Apr. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Iceland................................................. 7,1 5.8 4.0 6.6 Iraq...................................................... 65.4 12,0 27.1 Ireland Rep. of..................,............... 6,3 6.2 6.6 8.9 Jordan................................. 7.9 16,0 16.0 39.7 Luxembourg......................................... 20.1 21.1 28.2 25.3 Kuwait....................................... 52.0 35,5 24.6 49.2 Laos............................... 5.0 3.2 5.7 Other Latin American republics: Lebanon.................................................. 113.2 99 7 92.0 100.1 Bolivia.................................................. 53.1 67.4 64.4 66.9 Malaysia............................... 836.3 25,9 31.2 38.3 Costa Rica.............................................. 28.6 34.2 32.9 34.6 Pakistan................................................ 24.8 19.4 21.0 49.2 Dominican Republic......................... 47.3 72.3 54.3 53.2 Ryukyu Islands (inch Okinawa). 32.7 24.0 39.5 915.9 Ecuador............................. . . 65,2 69.6 62,3 86.3 Saudi Arabia............................. 288.0 283.6 291.0 176,1 Fl Salvador............ . 71.7 67.0 78.3 68.9 Singapore....................................... (8) 8.9 4.9 34.6 Guatemala............................................ . 71.6 68.1 86.9 64.2 Syria....................................................... 3.2 4.0 4.8 3.4 Haiti...................................................... 15.4 16.3 16.7 16.3 Vietnam.................................................. 19.7 39.0 123.8 132.0 Honduras................................................ 33.0 31.4 43.2 26.8 J amaica..................................................... 7.8 8.6 11.5 11.7 Other Africa: Nicaragua.............................................. 67.4 67.0 75.0 72.8 Algeria.................................................. 2,1 7.6 13,6 11.3 Paraguay................................................ 12.1 13.8 15.0 14.9 Ethiopia, (inch Eritrea).................. 45.2 44.1 58.9 53.5 Trinidad & Tobago............................ 8.6 3.6 6,3 4.7 Ghana..................................................... 5.1 2.6 2.9 6.9 Liberia............................... 17.6 17.9 19.7 21.2 Other Latin America: Libya........................................................ 26.8 34.8 26.7 37.1 British West Indies.,....................... 16.0 11.5 8.9 14.6 Mozambique...................................... 1.6 1.6 1.7 French West Indies & French Nigeria.................................................... 20.3 21.7 20.3 Guiana................................................. 1.4 2.2 1.5 1.3 Somali Republic................................. .8 .8 .9 .8 Southern Rhodesia............ 2,6 3.3 3.5 2.7 Other Asia: Sudan...................................................... 2.2 3.7 3.3 3.4 Afghanistan.................................... , 6.3 5.6 8.0 9.5 Tunisia........................... 1.0 1 .8 1.0 1.1 Burma............................... . ............ 35.9 49.1 34. 6 n.a. Zambia,...................... .9 7.2 16.1 n.a. Cambodia................................................ 1.7 2.7 3.1 1.1 Ceylon....................................................... 2.7 2.4 3.3 3.2 All other: Iran...................................................... 62.0 66.9 79.2 36.6 New Zealand....................................... 19.7 18.7 27.1 13.6 7 Represent a partial breakdown of the amounts shown in the “other” their date of issue. Data exclude the “holdings of dollars” of the Interna­ categories (except “Other Eastern Europe**) in Tables 8a-8e. tional Monetary Fund, and holdings of U.S. Treasury letters of credit and 8 Singapore included with Malaysia. non negotiable, non-interest-bearing special U.S. notes by other interna­ 9 Data exclude $12 million resulting from changes in reporting cover­ tional and regional organizations. For explanation see note following age and classification. Tables 17 and 18. Note.—Short-term liabilities are principally deposits (demand and For data on long-term liabilities, see Table 14. time) and U.S. Govt, securities maturing in not more than 1 year from 9. 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, official and international institutions* To all other foreigners Payable End of period Total for i e n i gn Deposits U.S. Deposits U.S. currencies Total T b r il e ls a s a u n r d y Other 3 Total T b r il e ls a s a u n r d y Other 3 Demand Time 2 certificates Demand Time 2 certificates 1963............................................. 22,877 19,696 5,575 3,673 8,571 1,878 3,047 1,493 966 119 469 134 1964 4.......................................... 25,518 22,051 6,684 + 990 8J27 2,650 3'377 1,531 1,271 72 503 90 1965............................................. 25,551 21,905 6,518 3,963 8'269 3'155 3,587 1,574 + 594 87 332 59 1966—Mar.............................. 25 591 21 534 7,054 3 823 7,643 3,013 3,676 1,530 1 703 89 354 381 Apr................................ 25,840 21,722 7,019 + 895 7,548 3,260 3+12 1,578 1 693 106 336 406 May............................... 26+21 21'880 7+31 3,769 7,464 3,416 3,704 1,531 1,718 88 367 437 June.............................. 25+49 21,750 7'234 3'654 7,384 3,478 3,743 1,526 + 756 72 389 456 July............................... 26,962 22,751 7,801 3'686 7,605 3,659 3+26 l,'49O 1'759 80 397 485 Aug............................... 27,226 23’017 8'147 3'701 7,529 3,639 3,653 1,413 + 765 81 394 556 Sept.............. 27,065 22'618 7'840 3'849 7,363 3,567 3,839 1,531 1,803 108 397 608 Oct................................ 28,054 23,532 8+81 4,003 7+71 3,477 3,820 1,479 1,816 98 427 702 Nov.............................. 28 398 23,903 8,542 4,070 7’896 3,394 3,790 1,492 1'809 89 400 705 Dec. 5........................... J \2 2 7 7 , . 6 7 0 3 4 4 2 2 3 3, , 3 2 7 6 7 8 8 8 , , 5 3 2 6 9 9 4 4, , 0 0 0 5 7 7 7 7 , , 4 4 6 6 4 4 3 3, ’ 3 3 7 7 7 7 3 3, + 7 4 4 8 8 1 1 , , 5 5 1 1 1 1 1 1 , , 8 8 1 1 9 9 8 8 9 9 3 3 2 2 9 9 6 5 0 8 9 8 1967—Jan................................. 26,734 22,512 7,662 3,968 7,386 3,496 3,708 1,455 1,825 81 347 514 Feb. p.......................... 26+32 22,’448 7+71 3,866 7'559 3,451 3,778 + 509 + 845 94 330 506 Mar. p.......................... 26,808 22,477 7+62 3,666 7,910 3;438 3,828 1,556 + 853 79 340 503 1 Data exclude “holdings of dollars” of the International Monetary follows (in millions of dollars): Total +50; foreign banks, etc. +55; Fund* . . . other foreigners +23; payable in foreign currencies —28. 2 Excludes negotiable time certificates of deposit, which are included 5 Data on the two Unes shown for this date differ because of changes in in “Other.” reporting coverage, Figures on the first line are comparable in coverage 3 Principally bankers* acceptances, commercial paper, and negotiable with those shown for the preceding date; figures on the second line are time certificates of deposit. comparable with those shown for the following date. 4 Includes revisions arising from changes in reporting coverage as Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

880 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1966 1967 Area and country Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.” Mar.p Europe: Austria.................3............... 3 3 3 3 3 3 3 3 3 3 3 3 3 Denmark........... 14 14 13 13 13 13 13 13 13 13 13 13 13 12 France........................................ 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Germany.................................. Italy............................................ 1 1 1 1 1 1 1 2 2 2 2 2 2 Netherlands............................ 6 5 5 5 5 5 5 5 5 5 5 5 5 5 Norway..................................... 49 45 45 44 51 51 51 51 51 51 51 51 51 51 Spain.......................................... 2 2 2 2 2 2 2 2 2 2 2 2 2 Sweden...................................... 24 24 24 24 24 24 24 24 24 24 24 24 24 24 Switzerland............................ 89 91 91 92 93 94 94 93 93 93 93 92 90 90 United Kingdom.................. 553 564 567 556 560 312 330 298 321 333 348 350 353 353 Other Western Europe... 51 49 49 51 50 50 50 50 50 50 49 49 49 50 Eastern Europe.................... 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Total 807 813 815 806 817 570 588 556 579 591 605 606 607 606 Canada 676 683 683 685 686 689 695 693 690 698 692 692 695 695 Latin America: Panama................................... 1 1 1 1 1 1 1 1 1 2 2 9 2 Other Latin American rep. 5 6 6 6 6 6 6 6 6 6 6 6 6 6 Other Latin America....... 21 23 24 22 20 18 18 18 18 18 19 18 18 18 Total 27 28 29 28 25 24 23 23 24 24 25 24 24 24 Asia: Japan..... 9 9 9 9 9 9 9 9 9 9 9 9 9 9 Other Asia 42 42 42 42 42 42 42 42 42 42 42 42 42 42 Total 51 51 51 51 51 51 51 51 51 51 50 50 51 50 Africa 16 Ifi 16 16 16 16 15 15 15 15 15 15 15 15 Other countries Total foreign countries 1,577 1,592 1,594 1,585 1,596 1,350 1,373 1,339 1,358 1,379 1,388 1,388 1,392 1,392 International and regional International....................... 679 483 415 364 359 359 314 314 314 286 250 228 187 172 Latin American regional... 74 73 73 73 74 74 74 75 75 75 75 76 60 60 Total 752 556 488 437 433 433 389 389 390 361 325 304 247 232 Grand total 2,329 2,148 2,082 2,022 2,029 1,783 1,762 1,728 1,748 1,740 1,713 1,692 1,639 1,624 Note.—-Data represent estimated official and private holdings of mar­ monthly reports of securities transactions (see Table 15 for total trans1 ketable U.S. Govt, securities with an original maturity of more than 1 actions). year, and are based on a July 31, 1963 survey of holdings and regular 11. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total Canada1 Italy2 Sweden Total Austria Belgium Germany Italy Switzer­ B.I.S. land 1962.............................. 251 251 200 51 1963............................... 893 163 125 13 25 730 50 30 275 200 175 1964.............................. 1,440 354 329 25 1,086 50 30 679 257 70 1965.............................. 1 692 484 299 160 25 1 208 101 30 602 125 957 93 1966—Apr................. 1,237 524 299 200 25 713 75 30 301 125 182 May............... 1,157 517 299 193 25 640 75 30 251 125 158 June............... 1' 101 512 299 188 25 589 75 30 200 125 158 July................ 1,002 512 299 188 25 490 75 30 150 125 110 Aug................. 927 512 299 188 25 415 50 30 100 125 110 Sept................ 852 512 299 188 25 340 25 30 50 125 110 Oct................. 623 385 174 186 25 238 25 30 125 58 Nov............... 593 355 144 186 25 238 25 30 125 58 Dec................. 695 353 144 184 25 342 25 30 50 125 111 1967—Jan.................. 767 353 144 184 25 414 25 30 101 125 133 Feb............... 767 353 144 184 25 414 25 30 101 125 133 Mar................ 766 352 144 183 25 414 25 30 101 125 133 Apr................. 766 352 144 183 25 414 25 30 101 125 133 .................... 1 Includes bonds issued to the Government of Canada in connection through Oct. 1966; and $144 million, Nov. 1966 through latest date. with transactions under the Columbia River treaty. Amounts outstanding 2 Bonds issued to the Government of Italy in connection with mili­ were $204 million, Sept. 1964 through Oct. 1965; $174 million, Nov. 1965 tary purchases in the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 881 12. 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, io a n n a d l Europe Canada A L m a e t r in ic a Asia Africa co O un th tr e ie r s 1963 ......................................................................................................... 5,975 I 939 638 1,742 2,493 104 58 1964......................................................................................................... 71469 1 1,217 725 2^212 3J37 120 58 1964'1....................................................................................................... 7,957 1,230 1 ,004 2^35 3,294 131 64 / 7,632 ♦ 1^01 593 2’288 3,343 139 67 1965 2.................................................................................. I 7,734 1,208 669 2,293 3,358 139 67 1966—Mar........................................................................................... 7,590 1 1,176 647 2,199 3,366 135 66 Apr............................................................................................ 7,474 I 1,166 603 2,149 3,359 137 58 May......................................................................................... 7'560 1 1 ’220 607 2’210 3'317 142 63 June........................................................................................ 7,649 1 1’285 643 2,221 3'298 140 62 July............................................................................................ 7,503 2 1,291 641 2,244 3', 135 128 63 Aug............................................................................................ 7,411 1 1’304 563 2'268 3’086 128 61 Sept............................................................................................ 7,’420 1 1,315 556 2,303 3,’063 124 59 Oct.. ................................... ........................................ 7’445 1 1,319 610 2^35 2,989 129 61 Nov.......................................................................................... 7’547 I 1,417 598 2’354 2,984 134 60 Dec. 2........................................................................................ / l r 7 7 ^ ,9 8 0 1 5 3 1 1 rl 0 , 6 38 8 1 6 60 1 3 4 2 2 ; , 4 4 9 8 3 9 r 3 3 , , 1 2 3 2 5 2 1 14 4 4 4 6 6 2 2 1967—Jan.............................................................................................. 7,753 1,304 591 2,488 3,184 125 60 Feb.p........................................................................................ 7’751 5 1 '256 622 2,502 3,173 131 62 Mar. p...................................................................................... 7,929 2 1’267 615 2; 545 3'293 146 62 12a. Europe End of period Total A tr u ia s­ g B iu e m l­ m De a n rk ­ l F a i n n d ­ France 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 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 1964L ...................................... 1,230 11 48 26 84 81 152 10 114 36 43 23 40 49 19652........................................ J [1 I , . 2 2 0 0 8 1 8 8 5 5 2 2 3 37 7 8 8 7 7 7 7 2 2 1 1 9 9 0 0 1 1 3 3 1 1 1 1 0 0 3 38 8 5 5 1 1 2 2 6 6 5 5 0 0 5 5 2 2 1966—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 (3 102 37 51 31 64 53 May........................... 1,220 11 66 36 87 70 174 14 99 39 57 32 73 58 June............ 1,285 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.. ......................... 1,319 13 70 61 95 64 217 16 105 43 53 40 60 83 Nov... ......... 1,417 19 73 63 95 81 237 16 110 44 62 36 72 74 Dec. 2....................... V (1, I 3 ,3 6 8 8 1 1 1 6 6 6 6 7 7 6 6 2 2 9 9 1 1 7 7 3 3 •■ 2 2 1 3 5 4 1 1 6 6 1 1 0 0 8 8 4 4 0 0 7 7 6 6 4 4 4 4 6 6 7 7 7 7 4 4 1967—Jan.............................. 1,304 19 69 42 90 60 203 15 84 36 64 44 75 68 Feb.p......................... 1,256 20 76 42 91 64 175 15 78 45 60 41 70 77 Mar. p..................... 1,267 19 72 44 92 66 180 14 70 44 62 39 69 78 12a. Europe—-Continued 12b. Latin America End of period Sw er it ­ z­ T k u e r y ­ U K n in ite g d ­ Y sl u a g vi o a ­ W O e t s h t e e r rn U.S.S.R. E O a t s h te e r r n Total A t r i g n e a n­ Brazil Chile l C om o­ ­ Cuba M ic e o x­ land dom Europe Europe bia 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 19641..................................... III 37 310 16 20 20 2,235 203 126 176 338 17 644 19652........................................ 1 / 7 7 3 3 4 4 2 2 2 2 1 1 0 6 2 2 8 8 2 28 8 6 6 2 27 7 2 2 , , 2 29 8 3 8 2 2 3 3 2 2 9 9 4 4 1 1 7 7 4 4 2 2 7 70 0 1 1 6 6 6 6 6 7 9 4 1966—Mar..................... 78 21 196 25 27 4 31 2,199 221 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............................. 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 Dec. 2......................... / 83 52 210 19 37 2 16 2,489 193 114 159 308 16 767 V88 52 H98 19 37 2 16 2,493 193 114 159 308 16 767 1967—Jan....................... 80 50 224 23 39 2 17 2,488 185 119 152 295 16 792 Feb.1’............... 82 27 213 22 39 2 17 2,502 175 122 150 286 16 821 Mar. p...................... 81 37 218 22 38 1 20 2,545 186 128 147 274 16 856 For notes see the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

882 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 12b, Latin America—Continued 12 c. Asia Baha­ Neth. E pe n r 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 e L li p t c . h A u s e b . r ­ B m & e a r s ­ A S nt u & il r l i e ­ s A O L m a i t c h t e a i e n r r ­ Total C M la h a n in i d n a ­ K H o o n n g g India I n n e d s o ia ­ Israel muda nam 1963....................... 35 99 65 114 135 42 9 16 2,493 2 11 17 22 1964...................... 41 102 76 165 222 58 18 20 3,137 2 26 22 7 44 19641.................... 49 108 78 168 224 65 18 21 3,294 2 28 21 7 47 19652.................... (59 1 17 7 0 0 4 4 5 5 2 2 2 20 0 2 2 5 5 0 0 5 5 3 3 1 14 4 2 2 3 3 3 3 , , 3 3 5 4 8 3 I 2 2 9 9 1 1 7 7 2 2 8 86 6 1966—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 I 33 28 1 81 June..,. 67 186 55 174 205 57 16 21 3,298 1 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 3,063 1 28 28 6 88 Oct.......... 7! 204 37 224 246 55 17 16 2,989 1 30 19 5 96 Nov........ 76 197 43 222 263 56 17 18 2,984 1 31 13 5 98 184 21 1 45 226 272 61 18 17 3,135 1 31 16 6 98 (85 213 45 226 272 61 18 17 >•3,222 1 31 16 6 98 1967—Jan........... 79 214 44 226 271 63 17 17 3,184 I 31 12 6 102 Feb.”... 78 226 39 220 273 62 17 17 3,173 1 31 12 6 106 Mar. ’'.. 79 233 56 220 260 56 17 16 3,293 I 33 13 5 96 12c, Asia—Continued 12d. Africa 12e. Other countries End of period Japan Korea P p h in il e ip s ­ T w a an i­ 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 ) Mo co roc­ A S f o r u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total A t l r u i a a s ­ ­ o A th l e l r 1963.................................. 2,171 25 113 8 52 71 104 1 1 15 28 59 58 48 9 1964................................. 2^53 21 202 9 64 88 120 1 2 19 42 56 58 48 10 19641............................... 2'810 21 203 9 65 82 131 I 2 20 42 67 64 48 16 19652............................... ( ( 2 2 , '7 7 5 6 1 8 2 22 2 2 2 3 3 1 0 1 1 5 5 8 8 2 2 1 1 0 08 7 1 1 3 3 9 9 1 I 2 2 3 3 4 4 4 4 3 3 6 6 0 0 6 67 7 5 52 2 1 15 5 1966—Mar.................... 2,783 24 206 15 72 115 135 1 3 35 42 55 66 59 7 Apr.................... 2^782 24 202 16 73 114 137 2 39 43 53 58 50 8 May................. 2,759 14 205 15 70 110 142 ♦ 2 50 39 50 63 52 11 June.................. 2^733 16 191 17 69 118 140 1 2 41 48 48 62 52 9 July.................... 2,'588 19 173 16 67 118 128 2 38 44 43 63 54 9 Aug................. 2,536 20 183 17 64 112 128 ♦ 2 37 44 44 61 52 9 Sept.................... 2,487 27 195 15 65 122 124 1 2 34 38 49 59 50 9 Oct......... 2,400 24 208 16 67 123 129 I 3 37 37 51 61 51 11 Nov.................... 2,389 26 211 15 72 122 134 45 30 57 60 50 10 Dec. 2................ ( 1 2 2 , , 5 5 8 0 8 2 3 3 1 1 2 2 2 20 0 1 15 4 8 8 1 1 0 1 3 3 5 4 1 1 4 4 4 4 1 1 2 2 5 5 0 0 2 2 5 5 6 6 6 6 6 6 2 2 5 52 2 1 1 0 0 1967—Jan...................... 2,509 33 233 23 83 151 125 3 38 18 66 60 51 9 Feb.”................ 2,507 34 228 26 86 137 131 * 4 44 15 69 62 53 8 Mar. ”............. 2; 626 38 232 30 89 131 146 I 2 42 30 70 62 53 9 1 Differs from data in line above because of the exclusion as of Dec. 31, Note.—Short-term claims are principally the following items payable 1964, of $58 million of short-term U.S. Govt, claims previously included; on demand or with a contractual maturity of not more than 1 year: loans and because of the addition of $546 million of short-term claims arising made to, and acceptances made for, foreigners; drafts drawn against from the inclusion of claims previously held but first reported as of Dec. foreigners, where collection is being made by banks and bankers for 31, 1964; and because of revision of preliminary data. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and 2 Data on the two lines shown for this date differ because of changes in their customers in the United States. Excludes foreign currencies held reporting coverage. Figures on the first line are comparable in coverage by U.S. monetary authorities. with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 883 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total O L ff o ic a ia n l s to—• C t o o io u l n le t s ­ c ­ f A o m a c r n a c c a d e e c e p s c t t ­ , Other Total D w e it p h o s fo its r­ g c F o u c o v o r r i t m e t , i e ig l s . s e n , ­ Other Total i t n io s n tit s u 1 ­ Banks Others st i a n n g d­ e o ig f n fo er r s . eigners a n n a d n c f e i­ paper 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 19642.................................... 7.957 7'333 2'773 221 1 ,403 I ,150 1,135 2’621 803 624 336 187 102 19653.................................... ( { 7 7 , , 6 7 3 3 2 4 7 7 , , 1 2 5 4 8 3 2 2 , , 9 9 6 7 7 0 2 27 7 1 1 1 1 , , 5 5 6 6 6 7 1 1, , 1 1 3 3 0 2 1 1 , , 2 2 6 7 8 2 2 2^ ,5 5 0 01 8 4 4 2 9 2 2 4 4 7 9 4 2 3 3 2 2 5 9 5 6 4 8 9 9 5 6 1966—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 C3O5 2'578 466 406 252 61 94 May...................... 7,560 7'139 2,835 224 1,520 11091 1,298 2^542 464 421 253 62 106 June....................... 7’649 7,179 2 911 248 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........................ 7311 6'971 2,820 216 1,548 1 '056 1,374 2,324 453 440 260 57 123 Sept........................ 7^420 6^992 2 943 256 1'619 1 '068 1,374 2^267 409 427 241 61 125 Oct............ 7,445 7,01 1 2,970 274 1,607 1,089 1,354 2^251 436 434 253 73 108 Nov.......... 7^547 7'095 3,015 273 1’619 1,123 1'363 2'276 441 452 269 77 106 Dec. 3..................... ( \ > 7 7 ^ , 8 9 1 0 3 5 r 7 7 ' , , 4 3 9 9 3 3 3 3, , 1 1 3 3 7 6 2 2 5 5 8 8 C 1, 7 7 3 3 8 8 1 1 ' , 1 1 4 4 0 0 I 1,3 3 6 6 7 7 2 2' , , 5 4 4 5 0 0 r 4 44 4 9 0 r4 42 l3 0 r 2 2 4 33 0 7 70 0 1 11 1 0 0 1967—Jan.......................... 7,753 7 386 2 990 257 1,592 1,141 1,370 2,575 451 367 211 73 83 Feb.’’..................... 7 751 7,345 2’965 241 1,576 1,148 1,376 2',565 439 407 245 70 92 Mar. >'................... 7,929 7,510 3,017 254 1 '606 1 ,'157 1 ,436 2,628 429 419 272 50 97 1 Includes central banks, 3 Data on the two lines shown for this date differ because of changes in 2 Differs from data in line above because of the exclusion, as of Dec. reporting coverage. Figures on the first line are comparable in coverage 31, 1964, of $58 million of short-term U.S. Govt, claims previously in­ with those shown for the preceding date; figures of the second line are cluded; because of the addition of $546 million of short-term claims comparable with those shown for the following date. arising from the inclusion of claims previously held, but first reported as of Dec. 31, 1964; and because of revision of preliminary data. 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area End of period Foreign n I a n ti t o e n r­ al Total c t o ri u e n s ­ re a g n io d n al Total P L a o y a a n b s le in d o o A th ll l e a l r rs P f r o e a c r n y i u e n c a r i i g b ­ e n l s e U K d n i o n it m e g d ­ E O u t r h o e p r e Canada Am La e t r i i n c a Japan O A t s h i e a r O c tr o ie th u s n e ­ r 1 1963....................... 69 28 42 3,030 2,811 217 2 38 1,063 290 1 ,015 249 194 181 1964 2.................. (306 200 106 3'971 3,777 195 77 1,611 273 1,162 385 238 227 1310 204 106 4,285 3,995 288 1 87 1,632 327 1,275 430 255 278 1965...................... 513 203 3 11 4 517 4 211 297 9 86 1,518 346 1 296 445 391 436 1966—Mar. ... 568 245 324 4,390 4,093 289 7 86 1 ,419 330 1,265 434 410 447 Apr......... 729 307 422 4,417 4,127 283 8 85 1 ,408 326 1,294 430 411 463 May.. .. 847 375 472 4,431 4,153 271 7 85 I ,412 308 1,318 425 406 476 June.. .. 1,019 534 485 4,389 4,108 272 8 87 1 ,386 311 1,306 406 410 481 July. . .. 1 ,083 583 500 4,389 4,111 270 8 81 1 ,349 328 1,300 403 428 502 Aug......... 1,103 606 497 4,368 4,095 265 8 78 1 ,328 322 1 ,296 393 428 523 Sept.... 1,116 620 496 4,287 4,004 266 16 75 1 ,270 320 1,306 374 430 510 Oct.......... 1,175 673 502 4,247 3,969 262 16 76 1 ,225 321 1 ,295 355 432 543 Nov.... 1,193 683 510 4,296 4,026 254 17 72 1 ,222 314 1,373 339 421 555 Dec......... 1,492 986 506 4,179 3,918 243 18 70 1,158 313 1,346 326 408 559 1967—Jan.......... 1,566 1,058 508 4,072 3,816 239 16 72 1,131 284 1,320 312 391 562 Feb.p... 1,664 1,118 547 4,027 3,785 228 15 72 1,108 270 1,320 301 391 566 Mar.p... 1,865 1,295 571 4,024 3,781 226 16 68 1,082 312 1,319 287 372 583 i Includes Africa. with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

884 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 15, PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) Marketable U.S. Govt, bonds and notes 1 U.S. corporate Foreign bonds Foreign stocks securities 2 Net purchases or sales Period Total I a n n t d i. Foreign ch P a u s r e ­ s Sales c N ha s e s a t e le p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e s a t e l e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e s a t e le p s s u o r r ­ regional Total Official Other 1963...................................... 671 302 369 2,980 2,773 207 991 2,086 -1,095 696 644 51 1964..................................... -338 -315 -23 -59 36 3,537 3,710 -173 915 1,843 -928 748 548 200 1965...................................... -76 -151 75 -20 95 4,395 4,770 -375 1,198 2,440 -1,242 906 617 290 1966..................................... -616 -427 -189 -245 56 6,318 5,616 703 1,778 2,688 -910 960 731 229 1966—Mar........................ -54 -50 -4 * -4 696 546 150 243 -109 100 101 -1 Apr........................ -66 -68 2 2 609 566 44 106 260 -154 88 105 -17 May....................... -60 -51 -9 * -9 742 583 159 152 161 -9 94 55 39 June....................... 6 -5 11 6 5 614 509 105 200 217 -17 91 52 40 July....................... -246 ♦ -246 -253 7 428 439 -11 135 248 -113 69 39 30 Aug........................ -21 -44 23 -1 24 379 381 -2 90 21 76 65 1! Sept........................ -34 -35 -35 502 378 124 99 194 -95 86 42 44 Oct........................ 20 20 * 20 383 347 36 293 351 -59 69 37 32 Nov........................ -7 -28 21 7 13 433 400 33 116 187 -71 58 41 17 Dec.............. -27 -36 9 9 563 542 21 152 151 85 53 31 1967—Jan......................... -21 * 527 44 112 265 -153 71 63 8 Feb.p..................... -57 -1 579 557 22 98 168 -70 66 52 13 Mar.p................... -14 -1 768 707 61 204 250 -46 74 61 13 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Note.—Statistics include transactions of international and regional official institutions of foreign countries; see Table 11. organizations. 2 Includes State and local govt, securities, and securities of U.S. Govt. agencies and corporations that are not guaranteed by the United States. 16. 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 d i ­ t­ U K d n i o n it m e g d ­ E O u t r h o e p r e E T u o ro ta p l e Canada A L m i a c t a e in r­ Asia Africa O c t o r t i h u e e n s r ­ re I g a n i n o t d i n , al 1963................. 207 198 9 -8 -14 206 16 199 -47 14 17 G) 21 22 1964................. -173 -349 176 -37 -200 -4 14 -228 3 25 10 -1 18 1965................. -375 -413 38 14 14 -522 47 -446 42 -13 24 -4 2 21 1966................. 703 -333 1,036 37 65 -80 116 140 224 65 18 1 4 251 1966—Mar.. 150 -37 187 9 27 -14 24 47 25 5 1 * 1 71 Apr... 44 -15 59 2 24 -54 3 -25 24 8 7 * 29 May.. 159 -11 170 13 33 -66 15 -5 54 14 -7 * 1 101 June 105 -50 155 12 -4 75 -7 76 4 3 9 * 13 July.. -11 -26 15 2 19 -92 26 -44 10 6 -8 -1 26 Aug.. -2 -16 14 2 -3 -24 -5 -29 18 1 8 * Sept... 124 -3 127 -2 96 2 97 19 8 -2 2 Oct... 36 7 29 -4 23 -10 12 22 13 6 -7 1 * 1 Nov.. 33 -68 100 -5 -33 29 26 17 12 1 * 2 Dec... 21 -115 136 -32 6 ♦ -24 33 6 2 * * 4 1967—Jan.. , 44 -6 50 1 19 -19 -4 -2 33 3 9 -1 « 2 Feb.*5, 22 -28 50 7 4 -16 16 11 4 4 1 3 Mar.”. 61 -3 65 9 5 12 19 45 4 9 8 * ♦ -5 1 Not reported separately until May 1963. Note.—-Statistics include State and local govt, securities, and securities 2 Includes Africa. of U.S. Govt, agencies and corporations that are not guaranteed by the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 885 17. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM 18. 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 t o f r o o i i g u e t r a n n s ­ l ­ r E op u e ­ C a a da n­ A L i m a c t a e in r ­ Asia r A ic f a ­ O c t o r t i h u e e n s r ­ E pe n r d i o o d f Deposits U se .S cu . A r s G it s i o e e v t s s t 1 , in c E us a t r o g m d o a y ld rked 1963 -1,044 -96 -949 -49 -614 -26 -252 (1) 2-8 1963.................. 171 8,675 12 954 1964, -728 -140 -588 163 -670 -36 -77 7 25 1964.................. 229 8,389 12,698 1965, -953 -164 -788 108 -659 -55 -131 3 -54 1965.................. 150 8^272 12,’896 1966, -68! -171 -510 214 -722 -9 -7 16 -2 1966—Apr... 192 7,455 13,001 1966—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, 30 -22 53 75 -13 -14 4 July... 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. 32 7 25 4 34 -4 -9 * Oct.... 194 7,336 12,876 Sept. -50 6 -56 19 -74 3 4 * -9 Nov,.. 196 7,450 12,912 Oct.. -27 -20 -7 -6 -36 17 10 8 Dec... 174 7,036 12,946 Nov. -54 6 -60 * -50 -4 -8 * Dec. 32 30 20 17 -12 -10 * 15 1967—Jan.... 148 7,141 12,961 Feb.. . 145 7,334 12,984 1967—Jan.. . -145 -52 -93 13 -80 o -8 1 Mar... 131 7,547 12,972 Feb.’. -57 6 -63 -6 -62 6 -2 Apr.. . 123 7,912 12,975 MarJ’ -33 -87 54 32 -49 28 27 6 1 U.S. Treasury bills, certificates of indebtedness, 1 Not reported separately until May 1963. notes, and bonds; includes securities payable in foreign 2 Includes 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. Notes to Tables 3-21 Note.—The tables in this section (Nos. 3-21) provide Data on short-term liabilities to foreigners shown in data on U.S. reserve assets and liabilities and other sta­ Tables 8 and 9 (formerly Tables 1 and 2) have been re­ tistics related to the U.S. balance of payments; see Table vised to exclude the holdings of dollars by the IMF de­ 1. A number of changes are being introduced in this issue rived from payments of the U.S. subscription and from of the Bulletin to increase the usefulness of this section. the exchange transactions and other operations of the The table showing the U.S. gold stock and holdings of Fund. (Liabilities representing the “gold investment” of convertible foreign currencies (now Table 4) has been re­ the Fund continue to be included.) This change in the vised to include in the reserve assets of the United States treatment of the Fund’s “holdings of dollars” is related its reserve position in the International Monetary Fund. to the revision of the table on U.S. monetary reserve In accordance with Fund policies, the United States has assets (Table 4) to include the U.S. reserve position in the right to draw foreign currencies equivalent to this the IMF. The Fund’s “holdings of dollars” do not rep­ amount virtually automatically if needed. (Under ap­ resent liabilities to foreigners in the same sense as do propriate conditions the United States could draw addi­ other reported liabilities to foreigners. They are more tional amounts equal to the U.S. quota of$5,160 million.) accurately viewed as contingent liabilities, since they rep­ This presentation corresponds to the treatment of U.S. resent essentially the amount of dollars available for monetary reserves in the U.S. balance of payments. drawings from the Fund by other member countries. Table 5 shows the factors that affect the U.S. position Changes in these holdings (arising from U.S. drawings in the IMF. and repayments of foreign currencies, from drawings and Table 6 brings together the various statistical compo­ repayments of dollars by other countries, and from other nents of the liabilities that enter into the U.S. balance of dollar operations of the Fund) give rise to equal and payments calculated on the liquidity basis. The inclu­ opposite changes in the U.S. gold tranche position in sion of the U.S. reserve position in the IMF in Table 4 the Fund. In the absence of U.S. lending to the Fund, requires that the “holdings of dollars" of the Fund be the gold tranche position is equal to the U.S. reserve excluded from the data on liabilities to foreigners, in position in the Fund. Since the reserve position is in­ order to avoid double counting. For further explanation cluded in U.S. reserve assets, it is necessary, in order to of this change in the liabilities statistics, sec next to last avoid double-counting, to exclude the Fund’s “holdings paragraph. of dollars” from U.S. liabilities to foreigners. This re­ Table 7 (formerly Table 1), presenting an area break­ vised presentation conforms to the treatment of these down of U.S. liquid liabilities to official institutions of items in the U.S. balance of payments and the inter­ foreign countries, has been revised to include holdings national investment position of the United States. of convertible nonmarketable U.S. Govt, securities with Table 10 shows estimated foreign holdings of market­ an original maturity of more than 1 year. able U.S. Govt, bonds and notes. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

886 INTL. CAPITAL TRANSACTIONS OF THE U.S. MAY 1967 19. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1965 1966 1965 1966 Dec. Mar. June Sept. Dec. v Dec. Mar. June Sept. Dec. 11 Europe: Austria................................................................... 2 2 3 3 2 6 8 7 7 8 Belgium................................................................. 28 30 32 30 32 45 46 45 42 53 Denmark.............................................................. 1 2 2 3 9 8 8 10 14 Finland....................................................................... 1 1 1 1 1 6 6 6 4 4 France................................................................. ■ 51 45 48 57 62 82 97 94 102 110 Germany, Fed. Rep. of................................ 71 60 HI 85 79 112 118 98 120 127 Greece......................................................... 3 3 3 2 2 13 11 18 15 15 Italy......................................................................... 18 23 27 52 54 77 118 111 107 101 Netherlands........................................................ 55 54 65 67 68 41 48 42 42 48 Norway................................................................. 2 2 2 2 2 8 8 7 9 8 Portugal................................................................ 3 7 6 6 9 5 9 8 6 7 Spain...................................................................... 21 21 23 25 27 50 56 63 51 61 Sweden.................................................................. 10 12 12 14 17 20 28 30 27 36 Switzerland......................................................... 39 45 61 58 60 27 20 20 22 18 Turkey................................................................ 4 4 4 4 2 7 10 6 6 6 United Kingdom............................................. 137 139 137 172 179 323 440 492 599 576 Yugoslavia......................................................... 1 1 1 2 1 2 2 2 4 4 Other Western Europe................................. 3 4 2 3 4 8 9 9 9 II Eastern Europe................................................. 2 1 1 1 3 3 6 3 2 Total............................................................. 453 454 500 586 604 842 1 ,047 1,070 1,185 1 ,209 Canada....................................................................... 94 120 117 138 146 599 566 550 509 488 Latin America: Argentina........................................................ 4 6 5 6 6 31 34 34 34 36 Brazil...................................................................... 13 11 11 9 10 93 80 78 73 63 Chile....................................................................... 4 5 4 3 4 30 31 31 31 32 Colombia............................................................. 9 8 7 5 7 19 21 22 21 25 Cuba....................................................................... 3 3 3 3 3 Mexico................................................................. 5 9 10 10 11 76 74 79 78 95 Panama................................................................. 11 9 4 9 10 13 11 13 12 12 Peru......................................................................... 6 7 5 6 7 28 30 28 28 31 Uruguay............................................................... I 2 1 1 1 8 7 5 6 7 Venezuela............................................................. 22 27 26 25 36 49 52 49 49 62 Other L.A. republics...................................... 16 11 12 18 20 55 56 55 59 62 Bahamas and Bermuda................................ 2 2 I 2 3 8 12 8 11 18 Neth. Antilles & Surinam.......................... 7 7 9 7 7 4 4 3 4 4 Other Latin America..................................... 2 I 2 2 1 9 9 9 11 10 Total............................................................ 102 105 98 104 124 429 424 417 420 461 Asia: Hong Kong......................................................... 2 2 2 2 3 7 5 7 6 7 India....................................................................... 25 25 20 17 17 36 35 29 32 34 Indonesia.............................................................. 9 12 II 3 4 3 3 3 3 7 Israel....................................................................... 3 1 2 2 2 6 5 4 5 5 Japan....................................................................... 32 27 27 23 27 162 172 155 146 165 Korea...................................................................... 1 2 4 3 13 6 4 5 5 Philippines............................................................ 6 7 7 7 7 17 16 18 17 17 Taiwan................................................................... 1 5 6 7 4 5 6 4 5 7 Thailand............................................................... 2 1 1 1 4 6 8 9 11 11 Other Asia......................................................... 32 33 36 34 29 66 76 76 69 75 Total............................................................. 113 112 116 101 100 320 331 309 299 333 Africa: Congo (Kinshasa)........................................... 1 1 1 1 2 2 1 2 2 South Africa....................................................... 11 11 11 10 17 20 18 18 17 24 U.A.R. (Egypt)................................................. 1 1 2 2 1 10 11 17 11 11 Other Africa....................................................... 7 9 9 7 6 30 27 30 30 33 Total............................................................. 20 22 22 19 24 61 58 66 59 69 Other countries: Australia.......................................................... 23 31 35 51 58 40 40 45 57 58 All other............................................................... 7 4 5 4 6 8 7 10 7 8 Total............................................................. 29 35 40 55 64 48 47 55 63 66 International and regional............................... * * * ♦ * * * 1 1 ♦ Grand total............................................... 810 849 891 1,003 1,062 2,299 2,473 2,468 2,536 2,626 Note.—Reported by exporters, importers, and industrial and com­ Data exclude claims held through U.S. banks, and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their foreign affiliates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 887 20. 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 i l n l a a b rs le P fo a r y i e n a ig b n le 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—Sept............................................................................................................ 678 554 123 2,136 1,685 197 254 Dec........................................................................................................... 637 508 129 2’051 1,625 214 212 Dec.1....................................................................................... 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 June3........................................................................................................ 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 ,949 190 267 Dec............................................................................................................. 807 600 207 2,397 2,000 167 229 Dec.4....................................................................................................... 810 600 210 2’299 1,911 166 222 1966—Mar............................................................................................................ 849 614 235 2,473 2,033 211 229 June........................................................................................................ 891 654 237 2’468 2,062 191 215 Sept............................................................................................................ 1,003 760 243 2,536 2,143 166 227 Dec. ^....................................................................................................... L062 800 262 2^626 2; 226 167 233 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 difi'er 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 21. 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 Africa o A th U e r America 1963—Sept.............................. 153 881 14 85 42 127 102 188 123 87 98 16 Dec.1............................ 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 June2........................... 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.3............................ 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.3............................ 147 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar............................... 176 1,156 27 124 239 208 61 206 98 87 87 19 June.............................. 192 1,207 27 167 251 205 61 217 90 90 86 14 Sept....................... 228 1,235 23 174 267 202 64 207 102 91 90 14 Dec. J’.......................... 305 1 ,253 27 198 269 203 56 212 95 93 87 13 t 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. 3 Data differ from that shown for December in line above because of 2 As a result of an increase in the exemption level from $100,000 to changes in reporting coverage. $500,000, data exclude $3 million of liabilities and $3 million of claims Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

888 GOLD RESERVES MAY 1967 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E p n e d ri o o d f m to a t t a e l d M t o ar n y e ­ U S n ta it te e s d r m es a t t e o d f Af is g t h a a n n­ A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world I960. 40 540 2,439 17,804 20,295 104 147 293 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. 243 300 31,869 13,806 27,355 35 66 223 700 1,558 63 84 1,151 44 1966-—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 13319 35 70 226 700 1,529 45 84 997 45 Sept.................... 43 255 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 45 84 1,021 45 Nov.................... 2,648 13,262 35 80 225 701 1,524 45 84 1,034 44 Dec..................... *43 205 2,652 13,235 *27,320 35 84 224 701 1,525 45 84 1,046 45 1967-—Jan...................... 2,659 13,202 35 84 227 701 1,524 45 84 1,056 45 Feb.................... 2,661 13,161 35 84 227 701 1,523 84 1,070 45 Mar..... 2,652 13,184 35 228 701 1,524 84 1,084 Ger­ E pe n r d io o d f lo C m o b ­ ia D m e a n rk ­ l F a i n n d ­ France m F a e n d y . , Greece India I n n e d s o ia ­ Iran Iraq Israel Italy Japan Rep. of I960................................. 78 107 41 1,641 2,971 76 247 58 130 98 2,203 247 1961.................................. 88 107 47 2,121 3,664 87 247 43 130 84 10 2,225 287 1962. 57 92 61 2,587 3,679 77 247 44 129 98 41 2,243 289 1063 62 92 61 3,175 3,843 77 247 35 142 98 60 2,343 289 1964................................. 58 92 85 3,729 4,248 77 247 141 112 56 2,107 304 1065 .............................. 35 97 84 4^06 4^10 78 281 146 122 56 2,404 328 1966- 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 lune..............• . 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 4^97 112 243 131 122 46 2,358 Sept.................... 25 108 55 5,241 4,295 116 243 131 122 46 2,356 329 Oct ... . 25 108 54 5,236 4,289 116 243 131 122 46 2,351 Nov................... 26 108 51 5,237 4,290 119 243 131 122 46 2,382 Dec.................... 26 108 45 5,238 4,292 120 243 130 122 46 2,414 329 1967- Tan...................... 27 108 45 5,236 4,290 120 243 130 122 46 2,412 Feb . . 108 45 5,235 4,289 120 243 130 106 46 2',411 Mar.......... 108 48 5,239 4,294 123 243 145 106 46 2,416 E pe n r d io o d f Kuwait a L n e o b n ­ Libya M c e o xi­ Mo c r o oc­ N l e an th d e s r­ Nigeria N w o ay r­ P s a ta k n i­ Peru P pi h n i e li s p­ Po g r a t l u­ A S r a a u b d ia i I960................................. 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............................. 52 182 68 158 21 1,756 20 31 53 67 38 576 73 1966--Mar.................. 58 193 68 134 21 1,756 20 31 53 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 1,730 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 68 136 21 1,730 20 18 53 65 49 627 69 Oct..................... 63 193 68 117 21 1,730 20 18 53 65 51 633 69 Nov............ 64 193 68 111 21 1,730 20 18 53 65 52 641 69 Dec............ 67 193 68 109 21 1,730 20 18 53 65 44 643 69 1967--Jan...................... 71 68 116 21 1,730 20 18 53 65 45 646 69 Feb..................... 71 68 116 21 rl,731 20 18 53 65 47 69 Mar................... 73 68 21 1 ;?3i 20 18 53 47 69 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MAY 1967 GOLD RESERVES AND PRODUCTION 889 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d io o d f S A o fr u ic th a Spain Sweden Sw la it n z d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K n in ite g d ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u a g vi o a ­ I f n o t r i. dom Settle­ ments 4 1960...................................... 178 178 170 2,185 41 104 134 174 2,800 180 401 4 — 19 1961...................................... 298 316 I 80 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 ...................................... 425 810 202 3'042 55 96 116 139 2,265 155 401 19 -558 1966—Mar........................ 520 785 202 2,652 55 92 116 139 155 401 20 -30 Apr......................... 557 785 202 2^647 55 92 116 139 2,036 155 401 20 -80 May................ 581 785 203 2^630 55 92 116 139 155 401 20 — 36 J une....................... 640 785 203 2'648 59 92 116 139 155 401 20 — 191 July........................ 677 785 203 2^683 59 92 106 139 2,041 155 401 20 -401 Aug......................... 672 785 203 2^681 59 92 105 139 155 401 20 -388 Sept........................ 664 785 203 2^681 59 92 100 139 155 401 20 -299 Oct........................... 655 785 203 2,680 62 92 100 121 1,940 155 401 21 -277 Nov........................ 637 785 203 2^679 62 92 100 93 155 401 21 —275 Dec......................... 637 785 203 2,842 62 92 102 93 146 401 21 -424 1,940 1967—Jan.......................... 611 784 203 2,679 r66 92 102 93 146 401 21 —274 Feb......................... 581 784 203 2'678 66 92 97 93 146 401 21 -289 540 203 2^79 92 97 93 401 — 15 1 Includes reported or estimated gold holdings of international and those matched by gold mitigation deposits with the United States and regional organizations, central banks and govts, of countries listed in United Kingdom; adjustment is $270 million. this table and also of a number not shown separately here, and gold to be 3 Excludes gold subscription payments made by some member countries distributed by the Tripartite Commission for the Restitution of Monetary in anticipation of increase in Fund quotas: for most of these countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ the increased quotas became effective in Feb. 1966. tries, and China Mainland. 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold The figures included for the Bank for International Settlements are assets minus gold deposit liabilities. the Bank’s gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the Note.—-For back figures and description of the data in this and the gold deposited with the BIS is included in the gold reserves of individual following tables on gold (except production), see “Gold,” Section 14 of countries. Supplement to Banking and Monetary Statistics, 1962. 2 Adjusted to include gold subscription payments to the IMF, except 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 S f o r u ic th a R de h s o ia ­ Ghana C s ( h K o a n i s n g a o ­ ) U S n ta i t t e e s d C a a d n a ­ M ic e o x­ r N a i g c u a a ­ Co b l i o a m­ India P p h in il e ip s * t A ra u l s ia ­ ot A he ll r 1960.... 1,175.0 748.4 19.6 30.8 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.... 1,295.0 892.2 19.4 31.1 54.5 146.2 8 3 7.8 13 9 5 7 14 8 37 4 56.6 1963.... 1,355.0 960.1 19.8 32.2 7.5 51.4 139.0 8 3 7.2 4 4 8 13 2 35 8 64.3 1964.... 1,405.0 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 62.8 1965.... 1,440.0 1,069.4 19.0 26.4 2.3 58.6 125.6 7 6 6.9 2 4 6 15 2 30 7 62.5 1966.... 1,080.8 114.6 4 2 15 6 1966—Feb.. 87.8 9.7 9 9 3 2 4 Mar. 90.5 zt.2 10.3 8 9 3 3 2 6 90.8 10.3 3 8 4 3 2 8 May 91.9 10.4 4 8 4 3 2 9 June. 89.3 9.2 9 8 3 2 3 3 July. 89.4 9.3 5 8 3 2 6 Aug. 90.1 9.2 8 8 3 0 Sept. 91.7 9.2 8 24 0 Oct.. 89.7 9.1 Nov. 90.8 8.7 Dec.. 87.7 9.6 31 7 24 0 1967—Jan. 89.5 8.7 Feb. 87.8 1 Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from 3 Data for Aug.-Dec. the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

890 MONEY RATES MAY 1967 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Apr. 30, 1966 Rate Country 1966 1967 as of Apr. 30, Per Month 1967 cent effective May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Argentina....................................... 6.0 Dec. 1957 6 0 Austria............................................. 4.5 June 1963 4.25 425 Belgium.. .................................. 4.75 July 1964 5.25 5.0 4.75 4 75 Brazil.........................»................... 12.0 Jan. 1965 120 Burma........................................ 4.0 Feb. 1962 40 Canada 3.................... 5.25 Mar. 1966 5.0 4.5 4 5 Ceylon............................................. 5.0 May 1965 5 0 Chile 2............................................. 15.86 15.84 15'84 Colombia........................................ 8.0 May 1963 8 0 Costa Rica..................................... 3.0 Apr. 1939 3 0 Denmark........................................ 6.5 6 5 Ecuador........................................... 5.0 Nov. 1956 5 0 El Salvador...................... 4.0 40 Finland............................................ 7.0 Apr. 1962 70 France............................................. 3.5 Apr. 1965 3'5 Germany, Fed. Rep. of.......... 4.0 Aug. 1965 5.0 4.5 4.0 3.5 3 5 Ghana............................................ 7.0 Jan. 1966 7 0 Greece............................................. 5.5 Jan. 1963 55 Honduras 3................................... 3.0 Jan. 1962 3 0 Iceland............................................. 9.0 Jan. 1966 9 0 India.................................................. 6.0 Feb. 1965 6 0 Indonesia........................................ 9.0 Aug. 1963 90 Iran.................................................... 4.0 Oct 1963 5.0 50 Ireland............................................. 5.94 Apr. 1966 5.87 5.94 6.87 6.94 7.00 6.81 6.87 6.50 6.25 5.88 5.91 5 91 Israel................................................. 6.0 Feb. 1955 6 0 Italy............................... 3.5 June 1958 3 5 Jamaica......................................... 5.0 5.5 5 5 Japan ............................................... 5.48 June 1965 5*48 Korea............................................. 28.0 Dec. 1965 28 0 Mexico............................................. 4.5 4 5 Netherlands................................... 4.5 5.0 4.5 4 5 New Zealand............................... 7.0 70 Nicaragua...................................... 6.0 Apr. 1954 60 Norway........................................... 3.5 Feb. 1955 35 Pakistan........................................... 5.0 June 1965 5 0 Peru.................................................. 9.5 Nov. 1959 9 5 Philippine Republic 4............. 4.75 Jan. 1966 4 75 Portugal........................................ 2.5 Sept. 1965 2 5 South Africa................................. 5.0 Mar. 1965 6.0 60 Spain................................................ 4.0 June 1961 40 Sweden............................................ 5.5 Apr. 1965 6.0 5.5 5.0 5 0 Switzerland............... 2.5 July 1964 3.5 35 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 7 5 United Arab Rep. (Egypt).. 5.0 May 1962 50 United Kingdom....................... 6.0 June 1965 7.0 6.5 6.0 6.0 Venezuela...................................... 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some continue to be .25 of 1 per cent above latest weekly Treasury bill tender of these countries follow: average rate, but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction: the average rate charged by banks in the previous half year. Old redis­ Brazil—8 per cent for secured paper and 4 per cent for certain agricultural counts remain subject to old rates provided their amount is reduced by paper; one-eighth each month beginning with May 1, 1959, but the rates are Colombia—5 per cent for warehouse receipts covering approved lists of raised by 1.5 per cent for each month in which the reduction does not products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent occur. for rediscounts in excess of an individual bank’s quota; 3 Rate shown is for advances only. Costa Rica—5 per cent for paper related to commercial transactions 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; Pent—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

MAY 1967 MONEY RATES; ARBITRAGE 891 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 it n z d er­ Month 3 T m re b o a il n l s s t u , h r s y 1 m Da o d y n a - e y t o y2 ­ 3 B a a m a c n n c o c k e e n e p s t r h t , s ­ s ’ 3 T r m b e i a o ll s n s u t , h ry s D m a d o y a n - y e t o y ­ a B d ll e o a p w n o o k n a s e n i . r t c s s e ' m Da o d y a n - y e t o y ­ 3 Tr 6 d e b 0 a a i - l y l s 9 s s u 0 , 4 r y m Da o d n y a e - y t y o s ­ 3 T r m e b a i o ll s n s u t , h ry s D m a d o y a n - y e t o y ­ d P is r r c a iv o t a e u te n t 1964—Dec................. 3.85 3.84 6.84 6.62 5.87 5.00 4.16 2.63 2.88 3.68 2.09 2.68 1965—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—Mar........ 4.87 4,33 5.97 5.61 4.76 4.00 4.55 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 4.00 4.83 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 5.1! 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 5.00 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 Dec............... 5.05 4.71 6.94 6.64 6.00 5.00 5 .68 4.75 5.81 4.90 3.68 4.00 1967—Jan.................. 4.83 4.78 6.77 6.29 5.93 4,90 5.57 4.13 5.13 4,87 4.31 4.25 Feb................. 4.62 4.43 6.40 5.99 5.50 4.50 5.06 3.75 5.00 4.78 5.04 4.25 Mar................ 4.26 4.24 6.18 5.72 5.30 4,26 4,64 4.57 4,25 i Based on average yield of weekly tenders during month. 5 Based on average of lowest and highest quotation during month. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Panking 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 Premium Date q K ( u U i a b n o U n a d g t s . j i a d . S t i e s t o . i t ) d o o m n U S n ta i t t e e s d L S ( o f p a n o r v d e f o a o d r n ) d f ( ( o p is + - r o c w ) u ) o a n o u o r d n n d r t i L n ( o c f N a n e o d v n e f o o t t i v r n e ) C q a u A n o in a s te d d a C ana q d u a A b o U d a t . j a s S . t is i . t o o n U S n ta i t t e e s d C S ( a f p a n o r a v e f o d a a d r ) C d f ( ( d o a is + - o r n c w ) l a ) l o a a d o u o r i r s n a n r d n t i . C n ( c a f N a e n o n v a e f o t d t i . v r a e ) 1966 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 13................... 6.20 4.77 1.43 -.63 + .80 4.89 4.76 4.77 -.01 -.19 -.20 20.................. 6.10 4.68 1.42 -.69 + .73 4.78 4.66 4.68 -.02 -.32 -.34 27................... 5.95 4.58 1.37 -.74 + .63 4.65 4.53 4,58 -.05 -.41 -.46 Feb. 3................... 5.79 4.44 1.35 -.75 + .60 4.62 4.51 4.44 + .07 -.43 -.36 10.................. 5.83 4.50 1.33 -.81 + .52 4.61 4.49 4.50 -.01 -.35 -.36 17.................. 5.89 4.58 1.31 -.75 + .56 4.59 4.48 4.58 -.10 -.19 -.29 24............... 5.89 4.59 1.30 -.75 + .85 4.55 4.44 4.59 -.15 -.15 -.30 Mar. 3 ........ 5,83 4.35 1.48 -.79 + .69 4.48 4.37 4.35 + .02 .00 + .02 10,................ 5.73 4.33 1.40 -.80 + .60 4.35 4.24 4.33 -.09 + .15 + .06 17.................. 5.55 4.21 1.34 -.70 + .64 4.22 4.12 4.21 -.09 + .22 + .13 23................... 5.49 4.11 1,38 -.85 + .53 4.08 3.98 4.11 -.13 + .13 .00 31................... 5.44 4.09 1.35 -.82 + .53 4.13 4.03 4.09 -.06 + .17 + .11 Apr. 7................... 5.44 3.88 1.56 -.89 + .67 4.05 3.96 3.88 + .08 + .17 + .25 14.................. 5.30 3.86 1 .44 -.89 + .55 3.95 3.86 3.86 .00 -.10 -.10 21.................. 5.28 3.75 1.53 -.89 + .64 3.95 3.86 3,75 +.11 -.04 + .07 28................... 5.30 3,68 1,62 -.99 + .63 4.00 3.91 3.68 + .23 -.13 + .10 May 5........ 5.12 3,65 1.47 -.81 + .66 4.02 3.93 3.65 + .28 -.17 +.11 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 11 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. 1260, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

892 FOREIGN EXCHANGE RATES MAY 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 3111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1966-—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 14.458 31.062 July. .. .4896 111.11 3.8705 2,0110 93.017 20.921 14.444 31.063 Aug.. . 4.4691 111.11 3.8718 2.0122 92.992 20.929 14.436 31.062 Sept.. . .4594 111.13 3.8720 2.0035 92.904 20.928 14.471 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 14.474 31.062 Dec.... .4039 111.16 3.8651 1.9987 92.319 20.926 14.484 31.062 1967-—Jan... . .4035 111.20 3.8648 2.0005 92,623 20.927 14.468 31.062 Feb..., .3993 111.32 3.8653 2.0100 92.529 20.932 14.444 31.062 Mar.. . 6.3103 111.41 3.8679 2.0116 92.415 20.938 14.467 31.062 Apr.............................................................. .2850 ....................1...11.52 3.8679 2.0121 92.378 20.954 14.472 31.063 Period F (f r r a a n n c c e ) G (d m e e r u a m ts r a k c ) n he y (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 ra ly ) J ( a ye p n a ) n ( M do a s l i l a l a a y r ­ ) M (p e e x s i o c ) o ( e g N r u la e il n d th d e ­ s r) 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. 720.404 25.084 20.966 280.00 .16087 .27663 32.664 8.0056 27.770 1964. 20.404 25.157 20.923 279.21 .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 25.007 816.596 279.30 .16014 .27598 32.538 8.0056 27.630 1966-—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 24.963 814.393 278.98 .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 1967-—Jan.. . . 20.199 25.140 13.257 279.10 .15996 .27577 32.473 8.0056 27.679 Feb.... 20.217 25.168 13.272 279.41 .15993 .27576 32.535 8.0056 27.694 Mar.. . 20.203 25.165 13.280 279.63 .16006 .27607 32.556 8.0056 27.682 Apr.............................................................. 20,227 25.167 13,294 279.92 .16009 .27625 32.589 8,0056 27.683 Period Z (p e N o a u e la n w n d d ) N (k o ro rw ne a ) y (e P s o g c a r u t l d u o - ) (pou S n o d u ) th Afr ( ic ra a nd) (p S e p s a e i t n a) S (k w ro e n de a n ) ( e S fr r w a la n i n tz c d ­ ) ( U p K d o n i o u n it m n g e d - d ) 1961 277.45 14.000 3.4909 279.48 139.57 1.6643 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 ....................1...39.13 1.6651 19.358 23.114 279.30 1966-—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 23.102 278.93 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 ....................1...38.99 1.6638 19.327 23.129 279.01 1967-—Jan.. .. 276.34 13.978 3.4786 139.03 1.6636 19.337 23.089 279.10 Feb.... 276.65 13.980 3.4783 139.18 1.6634 19.353 23.061 279.41 Mar.. . 276.86 13.984 3.4811 139.29 1.6633 19.367 23.079 279.63 Apr.............................................................. 277.15 13.993 3.4858 ....................... 139.44 1.6631 19.397 23.126 279.92 1 A. new markka, equal to 100 old markkaa, was introduced on Jan. 1, ^ 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. 11, 1966. 8 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 * 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 1 5 of Supplement to Banking and Monetary Statistics, 6 Quotations not available Mar. 7-14. 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 George W. Mitchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer William W. Sherrill 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 Examiner Thomas J. O’Connell, Assistant General Counsel Frederick R. Dahl, Assistant Director Jerome W. Shay, Assistant General Counsel Jack M. Egertson, Assistant Director Wilson L. Hooff, Assistant General Counsel Thomas A. Sidman, Assistant Director Charles C. Walcutt, Assistant Chief Federal Reserve Examiner DIVISION OF RESEARCH AND STATISTICS Daniel H. Brill, Director DIVISION OF PERSONNEL ADMINISTRATION 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 OFFICE OF DEFENSE PLANNING Robert Solomon, Director Innis D. Harris, Coordinator Robert L. Sammons, Associate Director A. B. Hersey, Adviser DIVISION OF DATA PROCESSING Reed J. Irvine, Adviser Lawrence H. Byrne, Jr., Director Samuel I. Katz, Adviser Lee W. Langham, Assistant Director John E. Reynolds, Adviser John H. Rhinehart, Assistant Director Ralph C. Wood, Adviser David S. Staiger, Assistant Director 893 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

894 FEDERAL RESERVE BULLETIN • MAY 1967 FEDERAL OPEN MARKET COMMITTEE Wm. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer Sherman J. Maisel William W. Sherrill J. Dewey Daane George W. Mitchell Eliot J. Swan Darryl R. Francis J. L. Robertson Edward A. Wayne Charles J. Scanlon Robert C. Holland, Secretary Merritt Sherman, Assistant Secretary J. Howard Craven, Associate Economist Kenneth A. Kenyon, Assistant Secretary George Garvy, Associate Economist Arthur L. Broida, Assistant Secretary A. B. Hersey, Associate Economist Charles Molony, Assistant Secretary Homer Jones, Associate Economist Howard H. Hackley, General Counsel Albert R. Koch, Associate Economist David B. Hexter, Assistant General Counsel J. Charles Partee, Associate Economist Daniel H. Brill, Economist Benjamin U. Ratchford, Associate Economist Ernest T. Baughman, Associate Economist Robert Solomon, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL John A. Moorhead, ninth federal reserve district, President Sam M. Fleming, sixth federal reserve district, Vice President 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 Roger D. Knight, Jr., tenth federal RESERVE DISTRICT RESERVE DISTRICT John A. Mayer, fourth federal Robert H. Stewart, III, eleventh federal RESERVE DISTRICT RESERVE DISTRICT J. Harvie Wilkinson, Jr., fifth federal Frederick G. Larkin, Jr., twelfth federal RESERVE 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 895 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch 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 Castle W. Jordan Thomas C. Clark 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 James S. Williams 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 Pau) 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. IE 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 to 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. 896 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS 897 STAFF ECONOMIC STUDIES The Relative Impact of Money and Income on Interest Rates: An Empirical Investi­ Studies and papers on economic and financial sub­ gation, by William E. Gibson and George G. jects that are of general interest in the field of Kaufman. Feb. 1967. economic research. The Effect of Credit Conditions on State Summaries only printed in the Federal Reserve and Local Bond Sales and Capital Outlays Bulletin. Since World War II, by Paul F. McGouIdrick. {Limited supply of mimeographed copies of Feb. 1967. ' full text available upon request for single copies.) Investment by Manufacturing Firms: A Quar­ The Process of Inflation: A Review of the terly Time Series Analysis of Industry Literature and Some Comparisons of Cy­ Data, by Robert W. Resek. Mar. 1967. clical Performance, 1953-65, by Glenn H. Miller, Jr. Apr. 1966. Individuals as a Source of Loan Funds for State and Local Governments, Helmut The Federal Reserve System and World Wendel. Apr. 1967. Monetary Problems, by Robert Solomon. Variable-Rate Mortgages, by Robert Moore May 1966. Fisher. May 1967. The Spanish “Miracle”: Growth and Change Printed in full in the Federal Reserve Bulletin. in the Spanish Economy, 1959 to Mid-1965, by Rodney H. Mills, Jr. May 1966. (Reprints available as shown in following list.) Consumer Credit Regulations : A Review and Response, by Jerome W. Shay. June 1966. REPRINTS Empirical Aspects of Cost vs. Demand in (From Federal Reserve Bulletin unless preceded Commodity Pricing, by Addison T. Cutler. by an asterisk.) June 1966. Adjustment for Seasonal Variation. Descrip­ Cyclical Determinants of Capital Expendi­ tion of method used by Board in adjusting eco­ tures: A Regression Study of the United nomic data for seasonal variation. June 1941. States Steel Industry, by James P. Bennett. Hpp. July 1966. ' Seasonal Factors Affecting Bank Reserves. The European Economic Community’s Com­ Feb. 1958. 12 pp. mon Agricultural Policy and Its Impact *Part I, All-Bank Statistics, 1896-1955. Re­ on U.S. Exports, by Thomas M. Klein. July print of the U.S. Summary containing a descrip­ 1966. ' ' tion of revised statistics for all banks in the A Theory of Household Asset Selection, by United States, by class of bank, together with William J. Hocter. Aug. 1966. revised statistics. Apr. 1959. 94 pp. Liquidity Considerations and Monetary Statistics on the Government Securities Management, by Leonall C. Andersen (with Market. Apr. 1961. 8 pp. commentaries by Arthur L. Broida and Rich­ Liquidity and Public Policy, Staff Paper by ard G. Davis). Sept. 1966. Stephen H. Axilrod. Oct. 1961. 17 pp. The Overseas Dollar Bond Market and Re­ cent U.S. Borrowing Abroad, by Carl H. Seasonally Adjusted Series for Bank Credit. July 1962. 6 pp. Stem. Sept. 1966. Mexico’s Economic and Financial Record, by Interest Rates and Monetary Policy, Staff Yves Maroni. Oct. 1966. Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Measures of Industrial Production and Final Industrial Production—1957-59 Base. Oct. Demand, by Clayton Gehman and Cornelia 1962. 10 pp. Motheral. Jan. 1967. Flow of Funds Seasonally Adjusted. Nov. Firms’ Demands For Money: The Evidence 1962. 15 pp. From the Cross-Section Data, by William J. A Sectoral Analysis of Velocity, Staff Paper Frazer, Jr. Jan. 1967. by Paul F. McGouIdrick. Dec. 1962. 14 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

898 FEDERAL RESERVE BULLETIN • MAY 1967 New Foreign Bond Issues in the U.S. Market, Changes in Time and Savings Deposits, De­ Staff Paper by Robert F. Gemmill. May 1963. cember 1965-May 1966. Aug. 1966. 35 pp. 13 PP. Revision of Weekly Reporting Member Bank Recent Changes in Liquidity, Staff Paper by Series. Aug. 1966. 4 pp. Daniel H. Brill. June 1963. 10 pp. Interest Rates in Western Europe. Sept. Measures of Member Bank Reserves. July 1966. 19 pp. 1963. 14 pp. ’ Revision of Money Supply Series. Sept. 1966. Measuring and Analyzing Economic Growth, 13 pp. Staff Paper by Clayton Gehman. Aug. 1963. Treasury and Federal Reserve Foreign Ex­ 14 pp. change Operations. Sept. 1966. 11 pp. Changes in Banking Structure, 1953-62. Sept. Interest Rates in U.S. Capital Markets. Nov. 1963. 8 pp. 1966. 16 pp. Economic Change and Economic Analysis, Toward Understanding of the Whole De­ Staff Paper by Frank R. Garfield. Sept. 1963. veloping Economic Situation, Staff Eco­ 17 pp. nomic Study by Frank R. Garfield. Nov. 1966. Survey of Financial Characteristics of Con­ 14 pp. sumers. Mar. 1964. 9 pp. A Revised Index of Manufacturing Capacity, Staff Economic Study by Frank de Leeuw with Federal Reserve Security Transactions, 1954­ Frank E. Hopkins and Michael D. Sherman. 63, Staff Paper by Stephen H. Axilrod and Nov. 1966. 11 pp. Janice Krummack. July 1964. 16 pp. Time Deposits and Financial Flows. Dec. Ministerial Statement of the Group of Ten 1966. 14 pp. and Annex Prepared by Deputies. Aug. 1964. 25 pp. Balance of Payments Program: Guidelines for Banks and Nonbank Financial Institu­ Yield Differentials in Treasury Bills, 1959­ tions. Dec. 1966. 8 pp. 64, Staff Paper by Samuel I. Katz. Oct. 1964. 20 pp. The Role of Financial Intermediaries in U.S. Capital Markets, Staff Economic Study by Research into Banking Structure and Com­ Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. petition. Nov. 1964. 17 pp. Size and Composition of Consumer Saving. Bank Credits to Foreigners. Mar. 1965. 10 pp. Jan. 1967. 19 pp. Measures of Banking Structure and Competi­ Recent Bank Credit and Monetary Develop­ tion. Sept. 1965. 11 pp. ments. Feb. 1967. 13 pp. Time Deposits in Monetary Analysis, Staff Revised Series on Commercial and Industrial Economic Study by Lyle E. Gramley and Sam­ Loans by Industry. Feb. 1967. 2 pp. uel B. Chase, Jr. Oct. 1965. 25 pp. Auto Loan Characteristics at Major Sales Fiscal Policy and Debt Management. Nov. Finance Companies. Feb. 1967. 5 pp. 1965. 11 pp. Consumer Instalment Credit. Mar. 1967. Cycles and Cyclical Imbalances in a Chang­ 12 pp. ing World, Staff Paper by Frank R. Garfield. Treasury and Federal Reserve Foreign Ex­ Nov. 1965. 15 pp. change Operations. Mar. 1967. 12 pp. Research on Banking Structure and Per­ The Balance of Payments in 1966. Apr. 1967. formance, Staff Economic Study by Tynan 16 pp. Smith. Apr. 1966. 11 pp. Changes in Time and Savings Deposits, May Banking and Monetary Statistics, 1965. Se­ 1966-January 1967. Apr. 1967. 17 pp. lected series of banking and monetary statistics Survey of Finance Companies, Mid-1965. Apr. for 1965 only. Mar. and June 1966. 15 pp. 1967. 26 pp. Recent Credit and Monetary Developments. Monetary Policy and Economic Activity: A July 1966. 12 pp. Postwar Review. May 1967. 22 pp. Revision of Bank Credit Series. July 1966. Revision in Quarterly Survey of Interest 6 pp. Rates on Business Loans. May 1967. 7 pp. Commercial Bank Liquidity, Staff Economic Monetary Policy and the Residential Mort­ Study by James Pierce. Aug. 1966. 9 pp. gage Market. May 1967. 13 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 788) Acceptances, bankers’, 797, 815, 817 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 808, 810 Accumulated at commercial banks for payment Arbitrage, 891 of personal loans, 807 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 803 Banks and the monetary system, 803 Banks, by classes, 797, 804, 809, 812, 817 Banks, by classes, 804, 808, 810, 817 Federal Reserve Banks, 798, 885 Corporate, current, 829 Postal savings, 796, 803 Federal Reserve Banks, 798 Subject to reserve requirements, 802 Automobiles: Discount rates, 795, 890 Consumer instalment credit, 834, 835, 836 Discounts and advances by Reserve Production index, 838, 839 Banks, 790, 798, 800 Dividends, corporate, 828, 829 Bankers’ balances, 809, 811 Dollar assets, foreign, 875, 880, 884, 885 (See also Foreign liabilities and claims) Banks and the monetary system, 803 Earnings and hours, manufacturing industries, 845 Employment, 842, 844, 845 Banks for cooperatives, 819 Bonds (See also U.S. Govt, securities): Farm mortgage loans, 830, 831, 832 New issues, 825, 826, 827 Federal finance: Prices and yields, 815, 816 Cash transactions, 820 Business expenditures on new plant and Receipts and expenditures, 821 equipment, 829 Treasurer’s balance, 820 Business indexes, 842 Federal funds, 794, 808 Business loans (See Commercial and industrial loans) Federal home loan banks, 819, 831 Federal Housing Administration, 816, 830, 831, 832 Capital accounts: Federal intermediate credit banks, 819 Banks, by classes, 804, 809, 813 Federal land banks, 819 Federal Reserve Banks, 798 Federal National Mortgage Assn., 819, 832 Carloadings, 842 Federal Reserve Banks: Central banks, foreign, 888, 890 Condition statement, 798 Certificates of deposit, 813 U.S. Govt, securities held, 790, 798, 800, 822, 823 Coins, circulation, 801 Federal Reserve credit, 790, 798, 800 Commercial and industrial loans: Federal Reserve notes, 798, 801 Commercial banks, 808 Federally sponsored credit agencies, 819 Weekly reporting banks, 810, 814 Finance company paper, 815, 817 Commercial banks: Financial institutions, loans to, 808, 810 Assets and liabilities, 804, 808, 810 Float, 790 Consumer loans held, by type, 835 Flow of funds: Deposits at, for payment of personal loans, 807 Financial assets and liabilities, 860 Number, by classes, 804 Saving and financial flows, 850 Real estate mortgages held, by type, 830 Foreign central banks, 888, 890 Commercial paper, 815, 817 Foreign currency operations, 798, 800, 874, 875, 880 Condition statements (See Assets and liabilities) Foreign deposits in U.S. banks, 790, 798, 803 ’ 809 Construction, 842, 843 812, 885 ' Consumer credit: Foreign exchange rates, 892 Foreign liabilities and claims: Instalment credit, 834, 835, 836, 837 Banks, 876, 877, 879, 881, 883, 885 Noninstalment credit, by holder, 835 Nonfinancial concerns, 886 Consumer price indexes, 842, 846 Foreign trade, 873 Consumption expenditures, 848, 849 Corporations: Gold: Certificates, 798, 801 Sales, profits, taxes, and dividends, 828, 829 Earmarked, 885 Security issues, 826, 827 Net purchases by U.S., 874 Security prices and yields, 815, 816 Production, 889 Cost of living (See Consumer price indexes) Reserves of central banks and govts. 888 Currency in circulation, 790, 801, 802 Stock, 790, 803, 874 Customer credit, stock market, 816 Gross national product, 848, 849 Debits to deposit accounts, 800 Hours and earnings, manufacturing industries, 845 Debt (See specific types of debt or securities) Housing starts, 843 Demand deposits; Income, national and personal, 848, 849 Adjusted, banks and the monetary system, 803 Income and expenses, member banks, 862 Adjusted, commercial banks, 800, 802, 809 Industrial production index, 838, 842 Banks, by classes, 797, 804, 812 Instalment loans, 834, 835, 836, 837 Subject to reserve requirements, 802 Insurance companies, 818, 822, 823, 831 Turnover, 800 Insured commercial banks, 806, 807, 808 Type of holder, at commercial banks, 809 Interbank deposits, 797, 804, 809 899 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MAY 1967 900 Reserve position, basic, member banks, 794 Interest rates: Business loans by banks, 814 Reserve requirements, member banks, 796 Federal Reserve Bank discount rates, 795 Reserves: Foreign countries, 890, 891 Central banks and govts., 888 Money market rates, 815, 891 Commercial banks, 809, 811 Mortgage yields, 816, 833 Federal Reserve Banks, 798 Time deposits, maximum rates, 796 Member banks, 790, 792, 797, 802, 809 Yields, bond and stock, 815 Residential mortgage loans, 830, 831, 832, 833 International capital transactions of the U.S., 876 Retail credit, retail sales, 834, 842 International institutions, 874, 875, 888, 890 Sales finance companies, loans, 834, 835, 837 Inventories, 848 Saving: Investment companies, new issues, 827 Flow of funds series, 850 Investments (See also specific types of investments): National income series, 849 Banks, by classes, 804, 808, 811, 817 Savings and loan assns., 818, 823, 831 Commercial banks, 807 Savings deposits (See Time deposits) Federal Reserve Banks, 798, 800 Savings institutions, principal assets, 817, 818 Life insurance companies, 818 Savings and loan assns., 818 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 819 Labor force, 844 International transactions, 884, 885 Loans (See also specific types of loans): New issues, 825, 826, 827 Banks, by classes, 804, 808, 810, 817 Silver coin and silver certificates, 801 Commercial banks, 807 State and local govts.: Federal Reserve Banks, 790, 798, 800 Deposits of, 809, 812 Insurance companies, 818, 831 Holdings of U.S. Govt, securities, 822, 823 Insured or guaranteed by U.S., 830, 831, 832 New security issues, 825, 826 Savings and Ioan assns., 818, 831 Ownership of obligations of, 808, 811, 817, 818 Prices and yields of securities, 815, 816 Manufacturers, production index, 839, 842 State member banks, 806, 807 Margin requirements, 796 Stock market credit, 816 Member banks: Stocks: Assets and liabilities, by classes, 804, 808 New issues, 826, 827 Borrowings at Reserve Banks, 792, 798 Prices and yields, 815, 816 Deposits, by classes, 797 Income and expenses, 862 Tax receipts. Federal, 821 Number, by classes, 805 Time deposits, 796, 797, 802, 803, 804, 809, 812 Reserve position, basic, 794 Treasurer’s account balance, 820 Reserve requirements, 796 Treasury cash. Treasury currency, 790, 801, 803 Reserves and related items, 790, 802 Treasury deposits, 790, 798, 820 Mining, production index, 839, 842 Money rates (See Interest rates) Unemployment, 844 Money supply and related data, 802 U.S. balance of payments, 872 Mutual funds (See Investment companies) U.S. Govt, balances: Mutual savings banks, 803, 804, 806, 817, 822, Commercial bank holdings, 809, 812 823, 830 Consolidated monetary statement, 803 Member bank holdings, 802 National banks, 806, 807 Treasury deposits at Federal Reserve National income, 848, 849 Banks, 790, 798, 820 National security expenditures, 821, 848 U.S. Govt, securities: Nonmember banks, 806, 807, 808, 809 Bank holdings, 803, 804, 808, 811, 817, 822, 823 Dealer transactions, positions, and financing, 824 Open market transactions, 797 Federal Reserve Bank holdings, 790, 798, 800, Payrolls, manufacturing, index, 842 822, 823 . Personal income, 849 Foreign and international holdings, 798, 880, Postal Savings System, 796, 803 884, 885 International transactions, 880, 884 Prices: New issues, gross proceeds, 826 Consumer and wholesale commodity, 842, 846 Open market transactions, 797 Security, 816 Outstanding, by type of security, 822, 823, 825 Production, 838, 842 Ownership of, 822, 823 Profits, corporate, 828, 829 Prices and yields, 815, 816, 891 United States notes, 801 Real estate loans: Utilities, production index, 839, 842 Banks, by classes, 808, 810, 817, 830 Delinquency rates on home mortgages, 833 Vault cash, 790, 796, 809 Mortgage yields, 816, 833 Veterans Administration, 830, 831, 832 Nonfarm mortgage foreclosures, 833 Weekly reporting banks, 810 Type of holder and property mortgaged, 830, 831, 832 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 * (o THE FEDERAL RESERvFSYSTEM q) a 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