Federal Reserve Bulletin, 1967-10

FEDERAL RESERVE B U LLETIN OCTOBER 1967 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions. Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONTENTS NUMBER 10 VOLUME 53 OCTOBER 1967 1679 The Economic Pause in Western Europe Staff Economic Studies: 1697 Summary 1699 Commercial Banks and the Supply of Money: A Market- Determined Demand Deposit Rate 1713 Record of Policy Actions of the Federal Open Market Committee 1721 Law Department 1742 Announcements 1750 National Summary of Business Conditions 1752 Guide to Tabular Presentation 1753 Financial and Business Statistics, U.S. 1825 International Financial Statistics 1847 Board of Governors and Staff 1848 Open Market Committee and Staff; Federal Advisory Council 1849 Federal Reserve Banks and Branches 1850 Federal Reserve Board Publications 1853 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

The Economic Pause in Western Europe ECONOMIC EXPANSION in Western Europe was halted from early 1966 to mid-1967. This pause, the longest since World War II, marked the first time since 1958 that the rise of industrial pro­ duction in Europe had been interrupted for longer than a single quarter at a time. A decline in investment spending in Germany was the most important cause of the leveling off of aggregate West European production. That decline followed a period in which rapid domes­ tic price rises led the German monetary authorities to adopt in­ creasingly restrictive policies. The weakening of investment in Germany not only caused a substantial decline in over-all eco­ nomic activity there, but, because of that country’s importance as an export market, was also a very potent force in damping activity in the other countries. In addition, in the other countries various independent influences were at work. In Britain, restrictive policies designed to stop inflation, increase productivity, and cor­ rect a serious imbalance in the external accounts depressed con­ sumption and investment in the private sector. In France, economic activity was affected by a slowdown in consumer spending. In some other countries, the maintenance of strongly anti-inflationary mon­ etary policies until late in 1966 reinforced the effects of events in their larger neighbors. Finally, a lessening of demand pressures in the United States after the third quarter of 1966 was another, although less important, factor. The slackening of aggregate demand in Europe moderated or arrested the rise in prices, corrected some inefficiencies, and tended to improve labor force flexibility and efficiency after a long period 1679 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1680 FEDERAL RESERVE BULLETIN • OCTOBER 1967 of excessively tight labor market conditions. But the rise of real incomes slowed or halted, and there was an upsurge of unemploy­ ment. Moreover, the check to expansion in Western Europe aggravated international payments imbalances, as a leveling off of West European imports affected the exports of other countries, including those of the United States. Within Europe, the weaken­ ing of demand on the Continent complicated Britain’s task of restoring strength to the pound sterling, while Germany’s declin­ ing imports gave rise to very large surpluses in the German bal­ ance of payments. Recent evidence from Germany suggests that an upturn began during the past summer, and in Britain there are signs of renewed expansion. However, the absence of any expansion for more than a year meant that by mid-1967 West European production was well below its trend level; consequently, considerable time may elapse before output will have risen to levels consistent with optimum employment of labor and plant capacity and a better pattern of world payments. INDUSTRIAL PRODUCTION Western Europe experienced a rapid rise in industrial production AND GNP not only in the early postwar years but also continuing into the mid-1960’s. In the eight largest industrialized countries of Western Europe—ranked by size of industrial output: West Germany, the United Kingdom, France, Italy, Sweden, the Netherlands, Bel- 11 INDUSTRIAL PRODUCTION of WESTERN EUROPE stops rising Seasonally adjusted indexes of industrial production, excluding construction. Quarterly data from the Organization for Economic Cooperation and Development. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1681 GNP gium, and Switzerland—combined production increased at an '57­ average rate of 5.6 per cent in the 9 years 1957-65, a period that '65 includes the 1957-58 slowdown. ■63 '64 . The rise in the industrial production of these eight countries '65 slowed in the second quarter of 1966, when it increased only 0.5 per cent more. (See Chart 1.) Combined production remained virtually unchanged through the second quarter of 1967. In that quarter it was 0.5 per cent below a year earlier, but half of this drop reflected strikes in France in April and May. However, although production in Western Europe as a whole tended to be virtually unchanged in this 1966-mid-1967 period, there were important divergencies in the individual countries. The setback to expansion was most severe in Germany, where industrial production in the second quarter of 1967 was 6 per cent less than a year earlier. Production in Germany leveled off during the second quarter of 1966, fell continuously from June 1966 until March of this year, and then was nearly level again through June. A more limited decrease occurred in Britain, where • a a decline in the latter half of 1966 was followed by stability in the first half of 1967. In France, the Netherlands, and Sweden, production tended to level off in the fourth quarter of 1966 and BELGIUM showed little change in 1967, whereas the underlying trend of output in Belgium remained stationary after early 1966. Italy, in marked contrast with the rest of Western Europe, has been enjoying a vigorous expansion after recovering from its SWEDEN 1964 recession. The expansion in Italy made the difference be­ n tween stability and decline in the combined industrial output of the eight major West European countries; combined production in the other seven during the second quarter of this year was 2 per SWITZERLAND cent below the level a year earlier. The interruption in Western Europe’s economic expansion is also reflected in the figures for gross national product, even though these are available only on an annual basis for most European countries. The combined GNP of the eight major in­ dustrial countries grew, in real terms, at an average annual rate of 4.6 per cent in the period 1957-65 (see accompanying chart). The increase from 1963 to 1964 was very rapid, and that in 1965 VEAR-TO-/EAR INCREASE |PER CENT| was nearer to the longer-term average. But in 1966 the rate of Based on constant prices, oecd increase slumped to 3.2 per cent. The slowing was especially data for 1957-65; national sources and bis data for 1’966. marked in Germany, where the rise last year was 2.6 per cent compared with 4.8 per cent in 1965 and 6.6 per cent in 1964. In Britain the expansion of real GNP had already been markedly Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1682 FEDERAL RESERVE BULLETIN • OCTOBER 1967 slowed in 1965, but the rate of increase fell further to only 1.4 per cent in 1966. France and Italy were the only countries where real GNP rose more in 1966 than in 1965. The increase in Western Europe’s real GNP for 1967 will probably be smaller than it was last year, given the fact that industrial production in the first 6 months of 1967 showed scarcely any increase from the corresponding period in 1966. For the eight countries, real GNP in 1967 may be only about 2 per cent higher than in 1966. INVESTMENT Changes in the level of economic activity in Germany have a DECLINES IN GERMANY particular relevance for the rest of Western Europe. The West European countries trade principally with each other, and in 1965 Germany alone took 26 per cent of the total exports of the other countries, a share twice that of Britain, France, or the Netherlands. Before 1966, demand pressures were intense in Germany, as in most other European countries, and price increases had become much more rapid than in the earlier years of the post- 1958 expansion. However, there were obstacles to the effective utilization of fiscal policy to syphon oft excess purchasing power. In these circumstances, the German monetary authorities felt compelled to adopt an increasingly restrictive posture. Interest rates rose continuously from early 1964, and by 1966 had reached very high levels, as discussed in the Bulletin for Septem­ ber 1966, pages 1281-99. Credit conditions in Germany tight­ ened still further in the first half of 1966, and interest rates reached a peak in July. German enterprises reduced their investment spending somewhat in the first half of 1966, when their outlays for inventory accumulation, plant, and equipment—excluding housing—fell 2 per cent below the year-earlier level valued at current prices. The decline gathered speed in the second half, when the year-toyear decrease was 10 per cent. Net additions to inventories in the first half of 1966 were about 50 per cent smaller than a year earlier, and in the second half gave way to liquidation. Plant and equipment expenditures were up 6.6 per cent in the first half but were down 3.5 per cent in the second. In addition, residential construction, which was up 10 per cent in the first half of 1966, dipped to a 3 per cent year-to-year rise in the second. Tight conditions in German financial markets also affected investment by governments (principally State and local) in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1683 buildings, roads, and other facilities. To relieve some of the intense pressure on the German bond market, the various public authori­ ties by mutual consent refrained from new public issues of bonds from May 1966 to the year-end. Investment outlays by all levels of government were 9 per cent larger in the first half of 1966 than a year earlier; the year-to-year gain in the second half was only 1 per cent. Investment in Germany continued to fall in the first half of 1967, in which period investment spending of all kinds, includ­ ing inventory changes and residential construction, is estimated to have been about 11 per cent less than in the first half of 1966. Monetary policy was greatly eased and interest rates declined sharply; however, private investment demand contracted under the influence of falling profits, adverse expectations, and the large margin of unutilized industrial capacity. Because of the fall in industrial production and the additions to capacity from earlier investment, industry’s rate of capacity utilization in the first half of 1967 was 77 per cent compared with 88 per cent in the first quarter of 1966. Governmental investment also declined in the first half of 1967, because of budget difficulties of the State and local governments. Spending by German consumers helped to sustain economic activity in the first half of this year. Such spending was an estimated 2.3 per cent higher at current prices than in the first half of 1966 despite little if any rise in consumers’ incomes. Consumer spending, together with further year-to-year increases in exports and government consumption, is estimated to have maintained the GNP at current prices at the same level as in the first half of last year; but in real terms, GNP had a 2 per cent drop. Of great sig­ nificance for Germany’s trading partners, imports fell more than total domestic output—their year-to-year decrease in the first half amounted to 7 per cent in value, or $1.2 billion at an annual rate. In addition, nearly 300,000 more foreign workers left Germany than came in during the 12 months through June 1967; thus payments from Germany to other countries were further reduced. The German recession bottomed out in the spring of 1967, and movements of several basic indicators suggest that a recovery began around midyear. Seasonally adjusted industrial production in July and August averaged 2 per cent higher than in the second quarter, and seasonally adjusted unemployment held steady in July following a drop in June. A sharp rise in stock prices Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1684 FEDERAL RESERVE BULLETIN • OCTOBER 1967 2 | FOREIGN TRADE growth slows down * indicates drop caused by dock strike for exports and by anticipation of removal of import surcharge for imports. Seasonally adjusted OECD quarterly data at annual rates. after midyear reflected an improvement in public confidence—in part related to additional measures to promote recovery, notably the announcement in July of plans for additional public invest­ ment expenditures. DEMAND RESTRAINT From 1963 to the summer of 1966, the British economy experi­ IN BRITAIN enced excess demand that engendered a domestic price inflation somewhat greater than in Germany and also threw the external accounts into deficit. Restrictive monetary actions in late 1964 and during 1965 improved the balance of payments but failed to swing it into surplus. The British labor market tightened still further in 1965, and wage increases continued to exceed productivity gains by a wide margin. In early summer of 1966 the economic outlook in Britain was still inflationary even though increased taxes had been voted, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1685 to take effect in September. Confidence pressures on the pound sterling led to a heavy outflow of funds from the United Kingdom in June and July 1966, to which the British Government responded by introducing a drastic program with top priority given to a strengthening of the nation’s international position. A package of measures was announced in July that included additional tax increases, plans for restraint of public spending, a further tighten­ ing of credit, a sharp rise in interest rates, and direct controls on prices and incomes. The economy reacted quickly to these measures. Seasonally adjusted consumer expenditures in real terms fell 2.5 per cent from the first half of 1966 to the second; purchases of durable goods, especially automobiles, were hit hardest because of the additional tightening of consumer credit regulations. Inventory accumulation declined and gave way to liquidation in the fourth quarter. Although total fixed investment was up 1 per cent in the second half, such outlays by the private sector alone were down 2.5 per cent. Industrial production declined from August through November and was 2.5 per cent less in the fourth quar­ ter than in the second. Real GNP in the second half was nearly unchanged from the first and would have shown a decline if exports had not risen. In the first quarter of 1967 purchases of automobiles recovered considerably, inventory accumulation resumed, and investment by the public sector continued to rise, but private fixed invest­ ment held at its depressed fourth-quarter 1966 level. Exports declined 4.4 per cent by June-July 1967 from December-January. They had risen during 1966 despite declining imports in Germany —but this year Britain felt the impact of declining import demands in France as well as Germany and the leveling off or decline of imports in most other European countries and in the United States and Canada. As a result of the divergent movements in various categories of demands, seasonally adjusted industrial production in the second quarter was only 1 per cent above its November 1966 level. British monetary conditions in general were eased substantially in the first 5 months of 1967, and consumer credit regulations were relaxed somewhat this summer. It now appears that the yearto-year drop in expenditures by private companies on plant and equipment in the year 1967 will be less than the decline of 8 to 9 per cent at constant prices indicated by a British Board of Trade survey in May. According to provisional estimates, the seasonally Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1686 FEDERAL RESERVE BULLETIN • OCTOBER 1967 adjusted volume of fixed investment by manufacturing concerns fell slightly further in the second quarter but that by the distribu­ tive and service trades rose sharply, so that for the first half fixed investment by these sectors was equal to that of a year earlier. Some recent firming of aggregate demand in the United King­ dom is suggested by several indicators. Industrial production rose in both June and July, seasonally adjusted bank loans increased from May through September, the volume of retail trade rose in both July and August, and unemployment showed almost no further increase in September. CONSUMER CAUTION IN FRANCE Industrial production in France leveled off around September of 1966, and then remained on a plateau through August of 1967 except in April and May when it was depressed by strikes. Economic conditions in France during the first three quarters of 1966 were satisfactory from a number of standpoints: expan­ sion had resumed in the spring of 1965—after a pause induced by the earlier anti-inflationary measures—and industrial produc­ tion advanced at an annual rate of more than 7 per cent from the first quarter of 1965 through the third quarter of 1966. Because labor and plant capacity were ample to meet rising demands, expansion was achieved without any acceleration in the uptrends of wage rates or retail prices. Meanwhile, the earlier large surplus in France’s balance of payments gave way to a small deficit in the second half of 1966. The loss of momentum in economic activity in the autumn of 1966 seems to have had two main causes. First, French exports ceased to rise in the second quarter of 1966, as import demand began to weaken in Germany. The effect of this leveling-off in exports on over-all activity was scarcely perceptible at the time because private fixed investment was accelerating. But from the second quarter of 1966 to the corresponding quarter this year, exports rose only 3 per cent, a rise only a fraction of what has been customary for France and other Common Market countries over the past decade. Second, and more important to the French slowdown, has been the cautious behavior of French consumers. It appears that in the closing months of 1966 French consumers stopped in­ creasing their expenditures. According to the French National Institute of Statistics and Economic Studies, private consumption expenditures in real terms, seasonally adjusted, were no higher in the first half of 1967 than in the second half of last year, despite Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1687 continuing increases in consumers’ real incomes. From the first quarter to the second this year there seems to have actually been a decline in expenditures, which surprisingly enough included purchases of foods. Uncertainty over employment opportunities probably helped to create a cautious attitude. Because of substan­ tial increases in productivity, unemployment was rising in France in 1965 and 1966 even when industrial output was still expanding rapidly, and the unemployment rise accelerated this year. The strength of demand in other sectors of the French economy has been uneven. During the early months of 1967, output of equipment continued to rise strongly as producers filled orders that had been placed before the end of 1966 in order to benefit from an investment credit for company income taxes. This year, outlays for plant and equipment may have been losing buoyancy, because of the expiration of the credit and because current opinion does not foresee an early or vigorous upturn in aggregate demand in France. The behavior of French imports contributed significantly to the general European slowdown this year. Imports rose through September 1966, then leveled off, and dropped sharply after March 1967. In June and July, seasonally adjusted imports were down 7 per cent from the first quarter of 1967 and were only 1 per cent more than in the second quarter of 1966. SLOWDOWNS IN SMALLER Production in the smaller industrial countries of Western Europe COUNTRIES —of which the Netherlands, Belgium, Sweden, and Switzerland are economically the most important—generally continued to rise until late 1966, then tended to be stable in the first half of this year. These smaller economies are particularly affected by import demand elsewhere because of the relatively high percentage of their total output that is sold abroad. Exports of goods and services equal between 30 and 45 per cent of GNP in the Nether­ lands, Belgium, and Switzerland. The commodity exports of these three countries kept on rising through the end of last year but then fell off; in June-July 1967 their exports were down 4.6 per cent from their December-January peak. This decline reflected not only developments in the larger economies but also the fact that, in the smaller countries, as domestic demand slowed so did import demands and consequently exports to one another. The slackening of exports was not the only factor tending to depress economic activity. In Belgium, private domestic demand has been sluggish since early 1965 while prices were being pushed Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1688 FEDERAL RESERVE BULLETIN • OCTOBER 1967 up by rising unit labor costs. Monetary policy there was shaped by concern over such price increases and a desire to keep interest rates from being too far out of line with those abroad. The Netherlands, Sweden, and Switzerland all experienced strong inflationary pressures from 1963 to late 1966 and much more rapid price increases than had been customary; in consequence, monetary policies became increasingly restrictive. In the Nether­ lands, private investment demand leveled off in the second half of 1966 and probably declined during 1967. Dutch consumers, too, became more cautious in their spending in 1966. In Sweden restrictive policies blunted the rise in investment in 1966; and there was a decline in the propensity to consume as well. This year consumer demand and industrial investment demand have both been sluggish. In Switzerland the slowing of total output in 1966 stemmed entirely from a smaller rise in exports, but invest­ ment declined in the early months of 1967. CONTINUED In Italy, where cyclical developments have been out of phase EXPANSION IN ITALY with those in the rest of Europe for some time, continuing expan­ sion from early 1965 through mid-1967 was produced by rising exports, increasing public expenditures, and a recovery of private investment from the exceptionally severe decline in 1964 which brought on the general recession in Italy at that time. Spending for plant and equipment has probably accelerated in 1967; recent projections show a 15 per cent rise, in real terms, in such spend­ ing and in other nonresidential construction in the second half compared with the second half of 1966. On a year-over-year basis, real GNP rose 5.5 per cent in 1966, and an equally large increase is expected for 1967. Italian exports rose rapidly throughout 1966. In the fourth quarter of last year, they were more than 11 per cent greater than a year earlier, compared to a rise of less than 8 per cent in the exports of Western Europe as a whole. During the first half of 1967, seasonally adjusted Italian exports tended to be level. However, a comparison of exports in the first half of 1967 with those of a year earlier shows a very large rise in sales to Eastern Europe and the less developed countries, as well as increases in Italy’s shares in the imports of Western Europe and North America. Italian imports, seasonally adjusted, rose 15 per cent from the first quarter of 1966 through the second quarter of 1967, and were an important factor in sustaining output and incomes elsewhere in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1689 Western Europe. This rise compares with a 7.5 per cent decrease in German imports between the same two periods. German imports are about twice as large as Italy’s, but because of the extent of the rise in Italy the increase in the dollar value was almost as large as the decrease in Germany. PRICE AND Most prices in Western Europe reflected the general weakening EMPLOYMENT EFFECTS of demand. In countries that had been experiencing strong up­ ward price pressures—that is, all but France and Italy—increases in wholesale prices persisted through the second quarter of 1966 but then began to abate. In the second quarter of 1966, whole­ sale prices of manufactures exceeded year-earlier levels by the following percentages: 2.9 in Germany, 3.1 in Britain, 4.5 in the Netherlands, 2.5 in Belgium, and 3.5 in Sweden. In Switzerland the comparable rise in total wholesale prices was 2.4 per cent. During the succeeding 12 months, a very high degree of stability in these prices was achieved: in the second quarter of 1967, the year-to-year changes were all less than 1 per cent, about as many being downward as upward. In France the rather sharp rise in 3 | WHOLESALE PRICES of manufactures tend to level off 1960=100 Wholesale price indexes for manufactures for most countries, but intermediate products for France and total wholesale prices for Switzerland. Indexes for Germany and Italy for invest­ ment goods only; those for the United Kingdom and France exclude foodstuffs. OECD quarterly data. prices of intermediate goods until the spring of 1966—and the subsequent decline—were caused mostly by changes in world market conditions of a few raw materials rather than by any abrupt change in the general price situation in France. Continued rapid expansion did not upset the stability of wholesale prices in Italy. Consumer prices have continued to rise everywhere in Europe, but the speed of the rise has slackened in most countries— markedly so in some cases. However, in France and Sweden the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1690 FEDERAL RESERVE BULLETIN • OCTOBER 1967 rate of rise has not been reduced. Consumer prices in Italy accel­ erated toward the end of 1966 but slowed again after a few months. Employment in manufacturing declined in most countries— except Italy—after the first or second quarter of 1966, while the labor force continued to rise. As a result, unemployment increased almost everywhere. It rose most severely in Germany, where it reached a seasonally adjusted peak of 610,000 in May 1967 compared to an average of 127,000 in the first quarter of 1966. But even in May, the unemployed in Germany were still less than 2.5 per cent of the labor force. In July the number was down to 594,000. Unemployment in Germany would have been higher had there not been a net outflow of 290,000 foreign workers in the 12 months ending June 1967. Unemployment was still rising this summer in France, and it rose in the United Kingdom until September. TRADE The Western European countries sell more than 60 per cent of RAMIFICATIONS their exports to each other, a degree of interdependence that helps explain any spread of demand weakness from one country to the rest. Merchandise trade among the 18 European members of the Organization for Economic Cooperation and Development (OECD), which last year equaled 10 per cent of their combined GNP, increased very rapidly prior to 1966 because of high rates of domestic growth, as well as large-scale tariff reductions on trade among Common Market countries and among the members of the European Free Trade Association. This trade expanded at an average annual rate of 11 per cent in the years 1957-65. There was a striking slowdown in the growth of this trade after the first quarter of 1966: from that quarter through the second quarter of 1967, the rise on a seasonally adjusted basis was at a rate of only 4 per cent a year. Because the increase that did take place can be ascribed wholly or mostly to continuing tariff reduc­ tions on trade within the area, it was not a source of additional demand for Western Europe as a whole. At a seasonally adjusted annual rate, intra-West-European trade in the second quarter of 1967 was only $2.8 billion more than in the first quarter of 1966, compared with the rise of $6.7 billion that would have occurred if the rate of expansion had been the same as in 1959-65. The difference of $3.9 billion equaled 0.8 per cent of Western Europe’s aggregate GNP in 1965, and when the multiplier effects of this shortfall are taken into account the key role of interna­ tional trade in the general European slowdown is very clear. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1691 Germany accounted for the largest part of this shortfall in trade expansion. German imports from Western Europe in the second quarter of 1967 at a seasonally adjusted annual rate were $1.1 billion less than in the first quarter of 1966. This decline is to be compared with the increase that would have occurred if economic expansion in Germany had continued. How great an increase cannot be known, but the average rate of increase in German imports from Western Europe in 1960-65 was 14 per cent a year, and such a rise would have equaled $1.5 billion in the period being discussed. Increases in Italian and British imports combined more than equaled the decrease in Germany, but understandably were far from sufficient to keep intra-West-Euro­ pean trade expanding at its former rate. The decline in U.S. imports between the autumn of 1966 and mid-1967 was another factor in the European slowdown—though small in its direct impact. Seasonally adjusted U.S. imports from Western Europe fell from an annual rate of $7.8 billion in the third quarter of 1966 to $7.4 billion in April-June 1967. Earlier, they had risen sharply, from $6.9 billion in the first quarter of 1966. The imports of Western Europe from the rest of the world held constant from the first quarter of 1966 through the second quarter of 1967, while exports rose in this interval. Western Europe had a trade deficit in the first quarter of 1966 of $11.9 billion, at a seasonally adjusted annual rate with imports valued on a c.i.f. basis. But by the second quarter of this year the deficit was down to $7.5 billion. The leveling off of Western Europe’s imports from outside the area—compared with an average annual increase of 6 per cent in 1957-65—had consequences for the balance of payments of other countries. U.S. exports to Western Europe in the second quarter of 1967 were at a seasonally ad­ justed annual rate of $10.1 billion, so that each 1 per cent rise in those exports would add directly about $100 million to U.S. export earnings. Furthermore, U.S. exports to non-European countries would also be at higher levels currently had not eco­ nomic activity outside Europe been affected by the European slowdown. Although the trade balance of Western Europe as a whole shifted markedly, such was not the case in Britain where a sub­ stantial increase in exports relative to imports was the major objective of policy. Despite the decline in industrial production in the second half of 1966, seasonally adjusted British imports Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1692 FEDERAL RESERVE BULLETIN • OCTOBER 1967 were 2 per cent higher in the third quarter of 1967 than in the first quarter of 1966, partly because the import surcharge of 10 per cent was removed in November 1966; the surcharge dated from November 1964 and had been reduced from 15 to 10 per cent in April 1965. Meanwhile, because of their decline after the start of the year, British exports in the third quarter of 1967 showed only a 1.5 per cent rise from their level in the first quarter of 1966. But if import demand on the Continent had continued to rise at a normal rate, British exports would have been significantly larger. The slowdown on the Continent and the Middle East crisis in mid-1967, both unforeseen and outside the control of the British authorities, created economic conditions in 1966-67 that made it more difficult for the United Kingdom to achieve its objective of a marked improvement in its balance of payments. The major development in external payments has been the emergence of a very large surplus in the German balance of payments because of declining imports and a strong export performance up to the start of 1967. Germany’s over-all external surplus—as measured by changes in official and commercial bank net foreign assets—in the first half of 1967 was $1.9 billion at an annual rate not seasonally adjusted. However, all of this amount and more too was used by the German commercial banks to increase their net assets abroad, so that official reserves net of official liabilities to foreigners actually declined $115 million. DECLINES IN Monetary policy began to be relaxed in almost all Western INTEREST RATES European countries either in late 1966 or early this year, and interest rates declined in varying degrees from earlier peak levels. The general movement of short-term rates in 1967 was decidedly downward until May, but mixed thereafter. Long-term bond yields receded in many countries until spring, but in some cases have risen again. Declines in interest rates from peak levels in 1966 were steepest in Germany, where the monetary authorities first allowed market forces to bring down some rates in late 1966 and then, after the start of 1967, acted vigorously to reduce interest rates and spur recovery. This year, the German Federal Bank has reduced the banks’ reserve requirements on several occasions— the latest action taking effect September 1. For large banks the reductions exceeded 40 per cent on reserves against demand and time deposits and 30 per cent on reserves against savings de­ posits. The discount rate was reduced from 5 to 3 per cent in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1693 four steps between January and May. Recently, for the first time, the German Federal Bank began to buy bonds for its own account. Short-term rates in Germany remained high for seasonal reasons in the latter part of 1966 but declined sharply this year before leveling off in May. In September the rate on 90-day interbank loans averaged 3.45 per cent compared with 6.83 per cent in September 1966. The composite yield on 6 per cent public authority bonds declined from a peak of 8.6 per cent in the second week of July 1966 until May of this year, when it leveled off at about 6.7 per cent. But despite the decline of nearly 2 percentage points, German bond yields are still higher than they were prior to early 1965. Moreover, the German bond market is still being sheltered by official action: while the complete ban on new issues of bonds by the public authorities has been lifted, access of these borrowers to the bond market is strictly regulated. German financial markets might have eased in 1967 more than they did if, as cited earlier, the German banks had not exported a very large volume of funds in response to higher short-term interest rates abroad. On the other hand, this outflow of short-term capital from Germany financed the German balance of payments surplus and thereby minimized the impact of the surplus on the reserves of other countries. British interest rates began to retreat in the late summer of 1966 as the effects of the July measures became visible and began to restore confidence in sterling. After the year-end, with an active easing of U.S. monetary policy and German interest rates declin­ ing, Britain was able to participate in the widespread de-escalation of interest rates. In the first 5 months of 1967 the Bank of Eng­ land reduced the discount rate in three steps by a total of 114 percentage points to 5.5 per cent; this brought short-term market rates down by about that much. The U.K. Treasury bill yield was 5.33 per cent on September 30. In the British bond market the yield on the British war loan— a representative no-maturity issue—dropped from a peak of 7.31 per cent at the beginning of September 1966 to 6.41 per cent in April, but then moved back up again to 6.94 per cent at the end of September this year. In April the clearing and Scottish banks were released from the 1965 regulation that had placed a ceiling on the volume of loans outstanding; however the banks were well below the ceilings because loans had contracted after the summer of 1966. The ceilings remained in force for other financial institu- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1694 FEDERAL RESERVE BULLETIN • OCTOBER 1967 tions. In another area, consumer credit regulations in Britain were somewhat relaxed in June and August of this year. Other countries that had employed monetary policy actively to combat inflation in 1963-66 took action to lower interest rates in 1967. Sweden and Belgium each reduced their central bank discount rates by 1 percentage point, and the Netherlands and Switzerland by half a percentage point. Declines in market rates from 1966 peaks have been greatest in Sweden and least in Belgium and the Netherlands, where bond yields in particular show little reduction. Yields in Switzerland changed little until July of this year, when short-term rates fell abruptly after the Middle East crisis had provoked a heavy flow of funds to Switzer­ land. But Swiss bond yields still have shown no tendency to fall. In Italy the policy of monetary ease begun in late 1964 has been continuous and has prevented all but a very small increase in interest rates in 1967. The French authorities have made limited use of monetary policy this year to stimulate the economy. Long-term bond yields are not much below last year’s advanced levels. Short-term rates have declined some since December 1966, but a greater relaxa­ tion seems to have been deterred by balance of payments con­ siderations, although the balance of payments returned to surplus in the first half of 1967. Consumer credit regulations were eased in July. FISCAL POLICIES West European governments have been generally prepared to allow built-in fiscal stabilizers to soften the impact of the slow­ down. The German authorities have also taken steps to provide a significant fiscal stimulus. However, in most countries, deliberate changes in taxes and expenditures on a cash basis in the first 6 months or more of 1967 were not strongly countercyclical. In the spring of 1966, when inflation was still the paramount problem in the United Kingdom, a deflationary budget was pre­ pared for the fiscal year beginning April 1, 1966. The main feature was the new Selective Employment Tax, designed both to raise revenue and to promote reallocation of labor along more productive lines. However, expenditures were increased substan­ tially more than had been planned, and so the deflationary impact was mild; in addition, a shortfall of tax revenues below expec­ tations cushioned the downturn in the economy. This year, in view of the still precarious state of the balance of payments, a cautious fiscal policy has been adopted. For the fiscal year begin- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

THE ECONOMIC PAUSE IN WESTERN EUROPE 1695 ning April!, 1967, the government has planned a deficit of $2,640 million, up $568 million from the previous year. The in­ crease is small considering the expected shortfall of GNP and tax revenues from the full-employment level. In Germany, the Federal Government became increasingly disposed in 1967 to taking fiscal measures to promote recovery. A special investment budget of $625 million was adopted in April, and a second program of $1,325 million—involving State and local outlays as well as Federal—was announced in July. Although these special budgets also raise some tax rates, the increases do not take effect until 1968. Thus, they provide some stimulus to the economy. In the regular Federal budget—that is, excluding both special investment budgets—the deficit is expected to rise from $625 million in 1966 to $1.75 billion in 1967. But this deficit would not have widened if the economy had expanded and tax revenues were at the full-employment level. Orders from the first special investment budget are already providing a stimulus. However, it was not until October 1967 that most orders had been placed under the second investment budget, and housing orders under that budget are not scheduled to be fully placed until March 1968. Meanwhile, the regular budgets of the State and local governments, which account for 45 per cent of total government spending, seem likely to offset some of the fiscal stimulus provided by the investment budgets. Because of the adverse effect of the recession on State and local tax revenues, these governments have budgeted only a 1 per cent rise in their com­ bined regular expenditures in 1967. In France the budget deficit on a cash basis is expected to rise from $400 million in 1966 to at least $1.4 billion in 1967. Most of the anticipated increase appears to reflect a faster rise than was foreseen in social security payments, as well as measures adopted last summer to speed up government investment outlays and reduce certain tax revenues. However, on the basis of present plans the deficit seems likely to contract sharply in 1968—in large measure because of the prospective elimination of the deficit in the social security system and higher rates now being charged by nationalized utilities and transportation systems. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ set forth are those of the authors and do not nors of the Federal Reserve System and of necessarily indicate concurrence by the the Federal Reserve Banks undertake studies Board of Governors, by the Federal Reserve that cover a wide range of economic and Banks, or by the members of their staffs. financial subjects, and other staff members Single copies of the full text of each of prepare papers related to such subjects. the studies or papers that are summarized From time to time the results of studies that below are available in mimeographed form. are of general interest to the economics pro­ The list of publications at the back of each fession and to others are summarized—or Federal Reserve Bulletin includes a sepa­ in some instances printed in full—in this rate section enumerating the studies for section of the Bulletin. which copies are currently available in that In all cases the analyses and conclusions form. Study Summary ECONOMIC TRENDS IN LATIN AMERICA IN THE 1960’S Yves Maroni—Staff, Board of Governors Prepared as a staff paper in April 1967; revised and updated in September 1967 The first half of the current decade was prices improved over this period. In addi­ marked by substantial real growth in many tion, changes in exchange rates in some im­ parts of Latin America. But nearly two- portant countries helped to stimulate exports thirds of the area’s population lives in coun­ and to limit increases in the demand for tries whose economies have grown slowly, imports. As a result, the area’s over-all mer­ if at all. Most of the countries growing at chandise trade surplus grew steadily. The satisfactory rates maintained relative price percentage rise in the area’s total exports stability, as did also a few countries experi­ was less than that of total world exports, encing slower expansion. However, inflation mainly because Venezuela’s exports, which remains a serious problem in several of the accounted for 30 per cent of the total in most populous South American countries, 1961, declined slightly in the period under and about two-thirds of the people in Latin review. But 13 countries responsible for 41 America have been living with the problems per cent of the area’s total exports in 1961 engendered by rapid inflation. had increases in exports close to or in excess On the whole, Latin America’s export of the rise in the world total. 1697 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1698 FEDERAL RESERVE BULLETIN • OCTOBER 1967 The area’s combined trade deficit with the last 6 years. In addition, there were .the United States has remained virtually un­ significant flows of private funds, including changed since 1961. But, in this period, the substantial increases in borrowings from United States declined in importance as a commercial banks in the United States. market for Latin American exports, although Three countries (Argentina, Brazil, and not as a source of supply for the area’s total Chile) also benefitted from comprehensive imports. debt refinancing operations during the period In spite of the improvement in the area’s since 1961. trade performance, the over-all balance of This financial assistance helped the area payments position in the early 1960’s re­ to cover its large debt amortization and its mained heavily dependent on external interest and dividend payments abroad. financing. Gross disbursements under official Several countries also faced private capital loans and grants to Latin America from the outflows induced mainly by fears of ex­ United States and other member countries change depreciation or of political insta­ of the Organization for Economic Coopera­ bility. Nevertheless, the area’s gold and tion and Development and from interna­ foreign exchange reserves at the end of 1966 tional lending institutions ranged between were $900 million greater than at the low $1.2 billion and $1.7 billion annually over point of 4 years earlier. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Study COMMERCIAL BANKS AND THE SUPPLY OF MONEY: A MARKET-DETERMINED DEMAND DEPOSIT RATE John H. Kareken—Consultant to the Federal Reserve Bank of Minneapolis and Professor of Economics at the University of Minnesota As noted in the introduction to this section, is responsible for the analyses and conclu­ the Federal Reserve Bulletin from time to sions set forth and the views expressed are time publishes in full staff studies that are not necessarily those of the Board of Gov­ of general interest to economists and others. ernors, the Federal Reserve Banks, or mem­ As in all staff economic studies, the author bers of their staffs. U.S. commercial banks have for a long time In the first section the desired balance been prohibited by law from making explicit sheet of a profit-maximizing bank is derived. interest payments to demand creditors. They One of the components of this balance sheet have never been prohibited, however, from is a desired stock of demand liabilities; as is making implicit payments; U.S. banking shown there, this desired stock or scale of laws and administrative regulations have operations changes, not only when one or never ruled out a market-determined demand another of the bank’s lending rates changes, deposit rate. Possibly U.S. banks have all but also when the demand deposit rate along been paying interest on their demand changes.1 loans, if in unconventional ways; it could In the second section the model of the even be that the rate implicitly paid to own­ financial sector is specified. Among the ers of demand deposits has changed through equations of the model are the aggregate time, much as other rates have. Whatever counterparts of the bank balance sheet equa­ our casual impressions may be, we simply do tions of the first section. not know. There is no basis in established How the equilibrium solution of the model fact for thinking it frivolous, even for some­ of the second section is affected when the one preoccupied with the U.S. economy, to central bank alters its portfolio of securities develop a financial sector model that deter­ is investigated in the third section. It is shown there that with a freely fluctuating mines an equilibrium demand deposit rate. demand deposit rate the equilibrium stock Which is what is done in this paper. of demand deposits may increase or decrease when the stock or supply of bank reserves is, Note.—The author would like to thank the Federal Reserve Bank of Minneapolis for its financial support say, increased. of the research which is in part summarized in this In the fourth section the equilibrium or paper and, at the same time, exempt it from any re­ sponsibility for the paper’s content. He would also like unconstrained solution of the model of the to thank William Brainard of Yale University, Samuel second section is compared with the dis­ B. Chase, Jr. of the University of Montana, Lyle Gramley of the Board of Governors of the Federal equilibrium solution which results when a Reserve System, Leonid Hurwicz, Marcel Richter, and Neil Wallace of the University of Minnesota, and demand deposit rate ceiling is imposed. Thomas Supel of the Minneapolis Bank for their help. To Chase and Gramley, he owes a special debt; with­ 1 An explicitly paid demand deposit rate is intro­ out their constant badgering, he would never have duced into the environment of the bank in section I. caught on to the “new view” in monetary economics, If this seems odd, it is just that introducing an im­ which provides the intellectual point of departure for plicitly paid rate would have complicated the exposi­ this article. tion and to no good purpose. 1699 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1700 FEDERAL RESERVE BULLETIN • OCTOBER 1967 The final section contains a critical ap­ (1) It + L = D praisal of received money supply theory. It where n, l, and D are, respectively, the dol­ is suggested there that the individual bank of lar totals of reserves, loans, and deposits. the Phillips-Rogers tradition in monetary The constraint on its stock of reserves is economics has no desired stock of demand (2) It > kD (0 < k < 1) liabilities, and further that the money supply where k, the familiar legal reserve require­ equations, so-called, of this tradition are not ment, is given. The bank maximizes current­ at all like the characteristic supply equation period profit, then, subject to the equality of classical price theory.2 It is also suggested (1) and the inequality (2). This the bank that proponents of the Phillips-Rogers tradi­ does by choosing the appropriate stocks of tion have all along been assuming an effec­ assets and liabilities. It can be thought of, tive, government-imposed zero upper limit however, as first determining its optimum on the demand deposit rate, although with­ stocks of reserves and loans for any given out saying so and without empirical justifica­ stock of demand liabilities, and as there­ tion. As is pointed out, this could be why after determining its optimum stock of lia­ they have never bothered to derive proper bilities or scale of operations. money supply equations. By assumption, some dollar return i . A DESIRED BALANCE SHEET 3 (^ pl = (ri ~ cr. ^' In this section a number of simplifying as­ is earned by the bank on its current-period sumptions are made. It is not argued that stock of loans; r^, which it takes as given, is they are realistic, only convenient. More the rate of return on loans and c( is the aver­ realistic assumptions could have been made age cost of making a loan. For cr = aL, (for example, about bank costs), but no where a is some positive technological con­ good purpose would have been served. stant, It is assumed that the individual bank (4) pl = (rr — aL) L holds as assets only reserves and one-period loans and has demand liabilities but no net This is the equation of a family of loan­ worth. Its balance sheet constraint is there­ revenue curves. With every value of the loan fore rate there is associated a particular loan­ revenue curve. The one associated with the 2 The traditional literature includes the pioneering rate rj is given in Figure 1; it is labeled p°, contributions of Phillips and Rogers [7, 8] and the and shows that as the bank’s stock of loans ultimate elaboration of Brunner [2], as well as numer­ ous textbook chapters in which the determination of increases the revenue from Ioans first in­ the money supply is allegedly explained. This litera­ ture is to be contrasted with that of what Tobin [10, creases but at some point reaches a maxi­ p. 410] has called the “new view” in monetary eco­ mum and thereafter declines. nomics, which begins with the inspired contribution of Gurley and Shaw [6] and includes several other papers By assumption, the dollar return [1, 5, 9, 11], The only author not avowedly a pro­ ponent of the new view who has been quite clear that (5) ph = trR a demand deposit rate ceiling, if effective, substitutes for the behavioral equation which gives the banking is earned by the bank on its current-period system’s supply of demand liabilities or money, and who has explicitly introduced a rate ceiling seems to stock of reserves; rR, which it also takes as be de Leeuw [3], 3 For an exposition very similar to that in this dis­ given, is the rate of return on reserves. From cussion, see reference 11, chapter 8 (as revised, March equation 1, however, 1964). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1701 (6)p„ =rre(O-D the deposit stock and the rates of return on loans and reserves, there is associated a par­ This is the equation of a family of straight­ ticular total revenue curve. In Figure 1 three line reserves-revenue curves. With every set total revenue curves are given. The first, p°, of values of the rate of return on reserves is that associated with the deposit stock n° and the stock of demand deposits there is and the rates r“ and r". It can be thought associated a particular reserves-revenue of as having been constructed by summing curve, which shows how the revenue from (vertically) the revenue from loans, as given reserves decreases as the stock of loans in­ by p°l, and the revenue from reserves, as creases from zero to the assumed deposit given by Pr, at every stock of loans in the stock. Three reserves-revenue curves are interval from zero to if. It shows, of course, given in Figure 1. For the first, pR, the as­ how total revenue from loans and reserves sumed deposit stock is d\ For the second, changes as the stock of loans increases from Pl the assumed stock is d'. And for the zero to D°, and more particularly that with third, p^, the assumed stock is D2. For all, the deposit stock if and the rates r° and the assumed rate of return on reserves is r".4 r°, the maximum total revenue, Max p°, is obtained with the largest possible stock of loans, if =kl)‘ = (1 — 7c) 77°, and the smallest possible stock of reserves, if = kD\ Since the net rate of return on loans (r — cr) decreases as the bank’s loans in­ crease, it is not invariably true, though, that the asset portfolio consisting of the largest possible stock of loans and the smallest pos­ sible stock of reserves yields the maximum total revenue. For deposit stocks greater than 1)', the limiting portfolio is not the optimum portfolio. The total revenue curve / of Fig­ ure 1 reaches a maximum at the stock of loans l' = k'd' —or, with 771 given, at the largest possible stock of loans. But at if total revenue is also an unconstrained maxi­ mum. Even without a reserves constraint, if would be optimal. At this stock of loans, the slopes of the loan-revenue curve P° Total revenue is by definition the sum of and the reserves-revenue curve pR differ only the revenue from loans and the revenue from in sign, and the slope of the total revenue reserves; that is, P = Pf + pr or curve p' is therefore zero. And although (7)p ^r I D t + (r h -r )L-alJ there is for every stock of deposits a different reserves-revenue curve, the slopes of these This is the equation of a family of total reve­ curves, being equal to the rate of return on nue curves, and with every set of values of 5 As the stock of loans increases beyond U', total ‘An assumption of Figure 1, it should be noted, is revenue continues to increase; but going beyond L° rp >rK. violates the constraint on the bank’s stock of reserves. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1702 FEDERAL RESERVE BULLETIN • OCTOBER 1967 reserves, are the same. It follows that for any to reserves, for with a loan stock greater than given deposit stock greater than b, maxi­ k'b the rate of reserves exceeds the net rate mum total revenue is obtained with the stock of return on loans. And because the rate of of loans b. return on reserves does not depend on the Given the rates of return on loans and bank’s portfolio, total maximum revenue reserves, there is then an optimum portfolio increases at a constant rate beyond d' . for every stock of demand liabilities, and There is another curve in Figure 2— some maximum total revenue as well. How namely, x" the optimum-loan curve associ­ maximum total revenue varies with the de­ ated with the maximum revenue curve posit stock is shown by the appropriate max­ Max p°. It is used to determine the portfolio imum revenue curve. For the rates ?2 and r^ the maximum revenue curve is Maxp0 of Figure 2. It shows that as the deposit stock increases from zero to d‘, maximum total revenue increases but at an ever de­ creasing rate, and additionally that as the deposit stock increases beyond b, total maximum revenue increases at a constant rate.0 The shape of the maximum revenue curve of Figure 2 is easily explained. As the stock of demand liabilities increases from zero to d', successive increments are allocated in constant proportions between loans and re­ serves. But because the net rate of return on loans, that is (^ - c;), decreases as the stock of loans increases, maximum total revenue increases at a decreasing rate. As the stock of demand deposits increases beyond a', of assets that yields the maximum total rev­ successive increments are allocated entirely enue obtainable from any given stock of de­ posits. Consider the stock D2. Maximum total “The slope of the maximum revenue curve ap­ revenue, as shown in Figure 2, is Max / (b). proaches rK from above as the stock of deposits ap­ proaches its critical value, D”, from below, for the And the asset portfolio that yields this reve­ equation of maximum revenue is nue? Along the horizonal line which inter­ rn ^® "^ ^l — ci (^'0)1 k'D for D < Dc sects Max p° at b1, the distance from the Max p = r (D — k’Dc) + [r — c (k'Dc)] k'D‘ for 7/-axis to the x° curve gives the revenue­ maximizing stock of loans T2; and the re­ D> D° maining distance, from the x° curve to the where Maxp° curve, gives the revenue-maximizing stock of reserves, ~R2. The profit-maximizing bank does not stop, though, once having determined its optimum For rR = r" and rr =r°, DC = D (Figures 1 and 2). portfolio of assets for any given stock of de- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1703 posits. It goes on and determines its opti­ mum stock of deposits, or optimum scale of operations. Having demand deposits costs the indi­ vidual bank something. By assumption, the total cost is (8) v = {r^ + c^ I) where rn, taken as given by the bank, is the rate paid demand creditors and «„ is the average cost of servicing deposits, accepting and recording in-payments, clearing checks, and so on.’ For cn = bl), where i> is another positive technological constant, (9) 7 = b„ + bl)) I) The total cost of deposits increases at an in­ creasing rate. This is what the total cost are the same. The maximizing stock of loans curves of Figure 3, 7" and7', show. is 7/' and the maximizing stock of reserves is For the demand deposit rate r")t the rele­ vant cost curve in Figure 3 is 7". Given this k" (= bu — I"). rate, the loan rate r" and the reserves rate The desired or profit-maximizing balance r“, the profit-maximizing stock of demand sheet of the individual bank has then been liabilities is b". By construction, it is at b" determined, although only for one set of where marginal cost and marginal revenue rates of return; and when a rate of return changes, the bank’s desired balance sheet changes. Consider a ceteris paribus increase 7 By the introduction of service costs, account is taken of the fact that demand deposits are used to in the demand deposit rate, from / to r'. make payments. If the aggregate quantity of demand For the higher deposit rate, 7' of Figure 3 deposit services is proportional to aggregate money income and if the quantity per dollar of deposits (,s) is the relevant cost curve; so the desired or is the same for all banks, then, for the /th bank, profit-maximizing stock of demand liabilities is b' not b“. The new desired stocks of loans where S' is the /th bank’s total of demand deposit serv­ and reserves are, respectively, L' and ices, 1)‘ is its stock of demand deposits, Y is aggregate money income, and I) is the aggregate of demand de­ k' (= b' b' ). posits. Minimizing the cost of deposit services, but As a general rule, the bank’s desired bal­ subject to a production function constraint, ance sheet also changes when either the loan S = l<" (b , Kb yields rate or the reserves rate changes. Suppose C = d‘ (D‘; D, Y, w, q) that initially the rates of return are r”, r ”, where (!‘ is the minimum total cost of providing de­ and A The desired stock of demand deposits posit services for the /th bank and w and q are, re­ spectively, the rates at which labor and capital are is therefore b" (Figure 3). With a ceteris paid. The specific assumption used in the discussion is paribus increase in the loan rate, from r" . (!‘ . . ■ ■ c‘ = — = KI)' = b' (D, Y) I)’ to r', the maximum revenue and optimum­ " D‘ loan curves shift. For r^, the relevant maxi­ (Factor rates, held constant throughout the analysis, mum revenue curve is Max / and the releare ignored.) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1704 FEDERAL RESERVE BULLETIN • OCTOBER 1967 vant optimum-loan curve is?. The desired (10) R = R{tl, rR, rj stock of deposits is then ft2. Also, with the (11) T = L(tl, rK, r^ higher loan rate, the desired stocks of loans and reserves are not what they were. (12) ft = Df^, rB, rj More could be done with the diagram­ where now R, R, and ft are, respectively, the matic apparatus developed here. But per­ entire banking system’s desired stocks of haps enough has already been done to make reserves, loans, and demand liabilities.8 To­ clear that the profit-maximizing bank has a gether, equations 10, 11, and 12 determine desired balance sheet—and, more particu­ the desired balance sheet of banks as a larly, a desired stock of demand liabilities— group. Of special interest is equation 12, which in the main changes when rates of which gives the banking system’s desired return change. How the individual bank’s stock of demand deposits or, alternatively, desired balance sheet might vary with the its desired supply of money. Having been demand deposit rate is shown in Figure 4. derived in the time-honored way of classi­ Of special interest is the curve labeled ft, cal price theory, it is a proper supply Figure 4 equation. Rate of return on demand deposits Determining short-run financial-sector equilibrium is the objective here; so the economy’s stock of capital is ignored. The balance sheet constraint of the nonbank sector of the private economy is therefore (13) © = 8 © is this sector’s stock of demand deposits, and 8 is its net stock of indebtedness, or in other words its stock of indebtedness to pri­ vate banks and the central bank. (There are no claims against the government; the cen­ tral bank deals in private claims.) Since aggregate money income is taken as given, it is assumed that ---------------j-----------------------------------1 Boiler po ^o---------------------------------------------stocks (14) © = © (rL, rj where © is the nonbank sector’s desired which shows how the bank’s desired stock of stock of demand deposits. demand liabilities varies with the deposit rate. It is the bank’s demand deposit " These equations are obtained in an essentially straightforward way, in the hrst instance by aggregat­ (money) supply curve and, as such, the ing over the individual units of the banking system. Actually, what the analysis of section I suggests is that curve for which there is no analogue in tra­ ditional models of bank behavior. R‘ = R‘(rL, rB, rD, k, Y, D) and so forth where, as before, Y is aggregate money in­ II. A SIMPLIFIED FINANCIAL SECTOR come and 1) is the total of demand deposits. But after After what has already been said, it would summing, D( = ft) can be eliminated as an independ­ ent variable, and k and Y are here regarded as con­ seem reasonable to suppose that stants. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1705 For financial-sector equilibrium, there eters, the supply of bank reserves, and the must be equality between the supplies of and rate of return on reserves. demands for reserves, loans, and demand Financial sector equilibrium is illustrated deposits, The equilibrium conditions are then in Figure 5. The curve b“ shows the banking system’s desired stock or supply of de­ (15) R(rJt rn, r^ = R (16) L(r, r , r ) = © (r , r ) — R (17) D(r r , r ) = © (r , r ) 11 h II where R is the supply of bank reserves, fixed by the monetary authority. As indicated by equation 16, the stock of loans which in equilibrium the banking system must desire is © (r£, rD) — R. By equation 13, the public’s desired stock of demand deposits is also its desired net stock or supply of loans; but to get the stock available to the banking sys­ tem, the stock desired by the monetary au­ thority, which of necessity is equal to the supply of bank reserves, must be subtracted. There being only two independent mar­ ket-clearing equations, one rate of return must be regarded as exogenously deter­ mand deposits for the given reserves and de­ mined. Since it seems the natural thing to do, posit rates r" and r^. The curve V shows it is assumed here that the monetary author­ its desired stock of loans, again for the rates ity fixes not only the actual stock of bank r” and /.’ The curve ©" shows the nonbank reserves, but the rate of return on reserves sector’s desired stock of demand deposits as well. For R = r" and rK = r “ the equilib­ and, also, its desired net indebtedness. The rium conditions are remaining curve, ©“ — it, shows the supply (18) L(rL, I,,, r") = © (rh, r^ - R" of loan claims to the banking system. (r° is the official demand for the loan claims of (19) D(r , r > r“) = © (r , r") h the nonbank sector of the private economy.) At the loan rate r“, the stock of loans de­ By the usual macroeconomic criteria, these sired by the banking system and the centwo equations can be said to determine the equilibrium values of the rates of return on “ The analysis of section 1 suggests that loans and deposits. More generally, the sys­ D'K’ r,>’ ^ > 0 tem of equations 16, 17, and either 12 or where D, denotes the partial derivative of I) with respect to the first argument, that is, rL. It also 13 can be used to obtain the equilibrium suggests that A, (rl , rD r^) > 0. With the curves D" values of the rates of return on loans and and L" as drawn in Figure 5, though, the assumption, deposits and the equilibrium value of the de­ admittedly strong, is that posit stock as functions of two policy param­ ^ r»’ rJ “~ L‘ <r/.> r,,’ rJ = ,l' ^e T,^ ^ < 0 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1706 FEDERAL RESERVE BULLETIN • OCTOBER 1967 tral bank together equals the nonbank evitably produce an increase in the equilib­ sector’s desired net indebtedness; and the rium stock of money. Stability does imply banking system’s desired stock of demand that the equilibrium loan and deposit rates deposits equals the nonbank sector’s. Then, decrease when the stock of reserves is too, the banking system’s desired stock of increased and increase when the stock is reserves equals the actual stock or supply. decreased. But even if the financial sector The distance from the ©° curve to the curve is stable, the equilibrium stock of money labeled ©°—ft" gives the actual stock of will not necessarily increase when the stock reserves; and the distance from the b° curve of reserves is increased or decrease when it to the L° curve gives the banking system’s is decreased.10 desired stock of reserves. Resorting again to the language of dia­ For the stock of reserves li" and the rate grams, it is simply that the money demand of return on reserves r^, the equilibrium loan curve shifts to the left when the supply of rate is therefore / and the equilibrium de­ reserves is increased. This shift of the curve posit rate is r“. The equilibrium stock of is not in itself enough to insure a decrease loans is L°. The equilibrium stock of de­ in the equilibrium stock of money, for the posits is D°. In a world without currency, D° banking system’s money supply curve shifts would be the equilibrium stock of money. rightward. The shift of the money demand curve to the left is necessary, though, for the III. OPEN MARKET OPERATIONS untraditional result. To increase the stock of reserves, the It has long been accepted that when the monetary authority must initially create an monetary authority makes, for instance, an excess demand for loan claims—or, equiva­ open market purchase, thereby increasing lently, an excess supply of loanable funds. the stock of bank reserves, the equilibrium This is shown in Figure 6. With an increase rate of return on loans decreases, at least in the stock of reserves, from R° to r', the initially, and the equilibrium stock of money loan-claims supply curve shifts to the left. increases. Within the confines of traditional For the rates of return on reserves and de­ models, these are necessary results. In the posits r“ and r“ and the stock of reserves language of diagrams, the money supply Ra, the relevant loan-claims supply curve is curve, so-called, shifts rightward when the labeled ©“—«“. But for these same rates of supply of reserves is increased. But because return and the stock of reserves r\ the the public’s desired stock of money depends, relevant loan supply curve is labeled ^a—R'. with aggregate money income given, only Presumably, then, an increase in the stock on the loan rate, the money demand curve of reserves implies a decrease in the loan does not shift. And because the public’s rate, and a decrease in the deposit rate as desired stock of money increases as the loan well. As will be clear from Figure 6, the rate decreases, an increase in the stock of loan rate cannot decrease without excess reserves cannot do other than decrease the demand developing in the market for de­ equilibrium loan rate and increase the equi­ posits. Moreover, with a decrease in the librium stock of money. deposit rate, the deposit demand curve shifts Within the confines of the financial-sector model of section II, however, an increase 10 Proofs of these propositions are given in the Ap­ in the stock of bank reserves does not in­ pendix. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1707 loan claims, so a decrease creates an initial excess supply. With a decrease, the equilib­ rium loan and deposit rates increase. De­ pending on what values are assigned certain parameters, the equilibrium stock of money either increases or decreases. In Figure 7 Figure 7 to the left, so the loan-claims curve shifts to the left again; and the deposit supply curve shifts to the right, as does the curve giving the banking system’s desired stock of loans.11 With a decrease in the deposit rate, there­ fore, excess demand develops in the market for loan claims. Still, if the financial sector is stable, rates it is shown as decreasing. The curve labeled do not go ever lower. In Figure 6 the new e gives the path along which the equilibrium equilibrium solution, that associated with stock of money and the equilibrium loan rate the rate of return on reserves r“ and the change as the stock of reserves changes. For stock of reserves r', is shown. The new the stock of reserves R°, the equilibrium equilibrium loan rate is r^ and the new equi­ money stock is D° and the equilibrium loan librium deposit rate is r'D. The new equilib­ rate is r“; and for the stock R', which is less rium stock of money isD1. The equilibrium than R°, the equilibrium values are D' and rL. stock of deposits has thus been shown as Of course, as the equilibrium money stock decreasing when the supply of reserves in­ and equilibrium loan rate change along the creases; it could have been shown, however, E curve, the equilibrium deposit rate as increasing. changes too. With a decrease in the stock of reserves from R° to r\ the equilibrium de­ IV. A DEMAND DEPOSIT RATE CEILING posit rate increases from rfl“ to rlD. Just as an increase in the stock of bank re­ The change in financial-sector equilib­ serves creates an initial excess demand for rium just described is to be compared, though, with that which results when, with 11 The analysis of section I suggests that the demand deposit rate prevented from ad­ D> ^ rfl' rP < 0 and the natural assumption is ©2 (rr, r ) > 0. justing upward by a rate ceiling, the stock Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1708 FEDERAL RESERVE BULLETIN • OCTOBER 1967 of bank reserves is decreased from Ra to r1. which, under constraint, the banking sys­ Suppose there is a restriction, rD </, on tem desires is equal to the stock made avail­ the deposit rate. To begin, the financial sec­ able; and the stock of reserves which, under tor is in equilibrium. The deposit stock is constraint, it desires is equal to the actual D°, and the loan rate is /. The deposit rate stock. is r^, so whatever happens to the stock of The point would seem to be that the reserves it cannot increase. Now, then, with a banking system, if bound by a rate ceiling, decrease in the stock of bank reserves from will desire a smaller stock of reserves than R° to Rl, the loan-claims supply curve shifts it otherwise would. In Figure 7 the distance to the right; for the new stock of reserves at the loan rate rl from the curve labeled the relevant loan-claims supply curve in P to that labeled ®°, which gives the con­ Figure 7 is that labeled ®"-/i‘. Again, strained desired stock of reserves, is less than there is an initial excess supply of loan the distance from the curve labeled $“_/;' claims created, and so the loan rate in­ to that labeled $'.1! It is therefore inevitable, creases. But the deposit rate does not in­ at least within the confines of the financialcrease, although an excess supply of loan sector model of section II, that the equilib­ claims is created by the increase in the loan rium loan rate increases less when there rate. Thus, with an effective rate ceiling, is an effective rate ceiling than when the the deposit demand and deposit supply deposit rate can adjust.13 curves do not shift. As the loan rate in­ 12 Recall that with no effective rate ceiling rL is the creases, the stock of money decreases along equilibrium loan rate. At this rate therefore the bank­ the original deposit demand curve, ©’, not ing system must desire the stock of reserves supplied, which is given by the horizontal distance from the the curve labeled E. curve labeled ©"—Rl to that labeled $". The bank­ But if the banking system is prevented ing system’s desired stock of reserves can be written as R = ^4- Iir = F (r^ rR, D) + kD by a deposit rate ceiling from going as much where Re is the desired stock of excess reserves and in debt to households and firms as it would Rr is the stock of required reserves. With the rate of like, its loan-claims demand curve, L0, is of return on reserves given (r“), then, no relevance. With an effective rate ceiling, the banking system allocates a given stock R = F [r ij , r° D (r , r r’)] + kD (r Ij r r°) If there is an effective rate ceiling, however, the bank­ of deposits between loans and reserves. In ing system’s stock of deposits is given by the public’s Figure 7 the curve labeled P gives this allo­ demand, so cation. The horizontal distance from the Rc = ^ K- ® <rL’ Td 1 + *® (r, r ) y-axis to this curve gives the stock of loans where Rc is the stock of reserves which, under con­ which, under constraint, the banking sys­ straint, the banking system desires. But since tem desires; and the remaining distance, from the P curve, that is, to the ®“ curve, it fo « llow - s ^ tha < t ^’>X) m gives what can only with qualification be if the desired stock of excess reserves increases as the called the banking system’s desired stock of stock of deposits increases. This is what the analysis reserves. of section I suggests and what has typically been as­ sumed. (Very often the desired stock of reserves has The new (constrained) equilibrium loan been taken as homogeneous of degree one in the stock of deposits.) rate is therefore r’, and the new (con­ 13 In Figure 7 the equilibrium stock of money is strained) equilibrium stock of deposits is //. shown as decreasing more when there is an effective rate ceiling than when the deposit rate can adjust. At the loan rate r\, the stock of Ioan claims This would seem necessary, but I have not proved it is. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1709 V. AN INSTANCE OF IMPLICIT THEORIZING? of loans and thereby decreases its stock of It has long been the favored assumption of reserves. In increasing its stock of loans, it textbook authors that hands deposits along to another bank, which in its turn makes the necessary asset adjust­ (20) R = kD ments and so keeps the deposit-multiplier where, as in section I, R is the bank’s desired process grinding on. This is an old story, stock of reserves. In words, the bank never and yet it makes quite unmistakable that, for wants more reserves than are required. Evi­ the bank of the Phillips-Rogers tradition, the dently, though, this is the only bank behav­ stock of deposits is given, and that, for the ioral assumption generally found in our banking system of this tradition, there are money and banking textbooks. There is in only two balance sheet equations. For a addition to equation 20 another useful equa­ simple enough world, traditionalists might tion, the balance sheet equation 1. But two write equations cannot determine three balance sheet stocks or—what comes to the same (22) R = R' (rL > D) thing in the simplest of institutional settings (23)L = D~R' (rL, D) = L' (r^, D) —the desired balance sheet of the individual (Again, R and L are reinterpreted, and now bank. denote aggregate desired stocks.) Missing Nor does it help to assume, as some jour­ is a proper deposit or money supply equa­ nal authors have,11 that the bank’s desired tion, an equation having as its dependent stock of reserves is determined by the rate of variable an aggregate desired quantity. return on loans as well as the legal reserve With equations 22 and 23 as the banking requirement and its stock of deposits, or system’s asset demand equations, the money more formally that, say,15 supply equation, so-called, of traditional (21) R = mD = m (r^) P, (1 > m > k) monetary economics would be With this assumption, the lessons of mod­ (24) D = D' {tl, R) ern theories of the demands for money and other financial assets are acknowledged. This equation is obtained, as are all money But the fact remains that equation 21 re­ supply equations of the Phillips-Rogers tra­ places equation 20. dition, by assuming that desired and actual With only two bank balance sheet equa­ stocks of reserves are equal in equilibrium, tions, 1 and 20 or 1 and 21, one (desired) and then, after some substituting, solving balance sheet stock must be determined for D. The dependent variable of equation exogenously, and traditionally the view has 24, and of all other traditional money sup­ been of a bank which has a given stock of ply equations, is therefore the stock of de­ deposits. Descriptions of the deposit-multi­ posits that makes the banking system satis­ plier process suggest as much. An individual fied with its actual holdings of reserves and bank, finding itself with, for example, too loans; it is not in the classical sense of the large a stock of reserves, increases its stock phrase a desired supply quantity. It may be judged to matter not at all that 14 See reference 2, pp. 80-81, and reference 4, pp. the banking system of traditional monetary 142-45. „ economics has no desired stock or supply of 15 And 2^ should decline in strictly monotonic fash­ ion as rL increases. demand liabilities. What has long passed for Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1710 FEDERAL RESERVE BULLETIN • OCTOBER 1967 financial-sector equilibrium can be deter­ precious little mention of a demand deposit mined. Among the behavioral equations of rate in the traditional literature. Still, a rate any traditional model there is one which that is always zero could very easily go gives the public’s desired stock of demand unmentioned. deposits. Here the appropriately simple Why proponents of traditional money sup­ equation would be 10 ply theory have never bothered to derive (25) © = ©' (rj proper money supply equations is thus ap­ parent. Appending the restriction rj} <0, By the usual macroeconomic criteria, equa­ to the model of section II, one turns it into tions 24 and 25 are sufficient to determine the model of this section. The equation what have long passed for the equilibrium r^ = o is substituted for the banking sys­ values of the loan rate and the stock of tem’s deposit supply equation. And deriving deposits. an equation which in the end is not going to Any model which does not determine a be used would seem pointless. ruling demand deposit rate cannot, however, It remains true, though, that explicit as­ be regarded as entirely satisfactory. The rate sumptions are better than implicit assump­ banks pay demand creditors, be it zero or tions. And it is still for econometricians to positive, is something to be explained. But decide whether a restriction on the de­ then it is inconceivable that proponents of mand deposit rate should be introduced, the Phillips-Rogers tradition have been un­ even explicitly. Until they have decided, we aware of their obligation. Undoubtedly they should perhaps not ignore the possibility of have all along been assuming, if without a market-determined demand deposit rate saying so, that there is a restriction, rD <0, when appraising the effects, and particularly on the demand deposit rate. There is the longer-run effects, of what the monetary 10Again, aggregate money income is taken as given. authority does. APPENDIX When the monetary authority changes its portfolio (27) rD = KD t0 ^L’ rD’ ^ ~ ® (T’ T)^ of nonbank-sector loans, there follow changes in the equilibrium rates of return on loans and depos­ where K^ and Kn, as speed-of-adjustment coeffi­ its and the equilibrium stock of deposits. But if the cients, are positive constants. For linear behavioral financial sector is stable, not all kinds of changes equations and unitary adjustment coefficients, are possible. As is shown here, equilibrium interest VL + VD — b»— blrL—b2rD—R <28) ^ = “o + rates must increase when the stock of reserves is decreased, and decrease when this stock is in­ (29) cirL + Vn Vi ~ %rD V c» + ~ »o — creased. As is also shown here, however, the where the a,, b,-, and e, are behavioral constants.17 equilibrium stock of deposits does not necessarily decrease when the stock of reserves is decreased, 17 The supply and demand equations of the text are or increase when the stock of reserves is in­ not linear, so equations 28 and 29 should be regarded as linear approximations of, respectively, equations creased. 26 and 27, with the alt bt , and Ci.(i = 1, 2) being Following custom, it is assumed that first partial derivatives of, respectively, ©, L, and D [e.g., at = S^ (r^, r^) \. The conclusions of this ap­ (26) ;L = K^ [© (rL, rj - L (rJ? rD, r^ ) - ZfJ pendix should be regarded as being true only locally. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

COMMERCIAL BANKS AND THE SUPPLY OF MONEY 1711 It is further assumed that D * is the equilibrium stock of deposits. From equations 32 and 33, (30) a,, b2, c2 < 0 (37) (a c — a c ) and D* = + sR A 31) a2, &,, c, > 0 Now, if inequalities 30 and 31 are satisfied, along These inequalities are suggested by the analysis of with the inequalities section I of the text. (38)6, > c, and i2 > c2 (|fe2| < jc2|) The equilibrium rate of return on loans is rL and the equilibrium rate of return on deposits is then A > 0. Also, if S^o“ (39) a, c2 p^ |c2| (32) (c2 - u2) A > = r* =------- R + A “2 r. A ’ then (33) * (c— a.) 1 r„ =------~-----Zi + 9i2 a,c2 — a2c, < 0 where Thus, if inequalities 30 and 31 are satisfied, along A^r ^-^-y ■ with the conditions —«2) (40) a2 = |aj and \ > c, > |c2| > |62| then the financial sector is stable and —- < 0. For stability of the system of equations 28 and dR 29, it is necessary and sufficient that And if inequalities 30 and 31 are satisfied, along (34) A > 0 with the conditions (35) (a,—\) + (c2-a2) < 0 (41) u2 = j^ and 6, > |c2| > |b2| > c, ^ then the financial sector is stable and -77— > 0. Thus, if inequalities 30 and 31 are satisfied, then dR stability implies By appropriate choice of behavioral coefficients, it is therefore possible to insure stability and have ^ 11 o dD* . dR ’ dR either positive or negative. with a change in the stock of bank reserves, there follow changes of opposite sign in the equilibrium As has been indicated, the analysis of section rates of return on loans and deposits. I of the text suggests it is reasonable to assume From equation 14 of the text, but in its linear that inequalities 30 and 31 are satisfied. A more version, penetrating microeconomic analysis might suggest otherwise; such an analysis might even suggest an (36) D* = aa + a,r* + a2r* ordering of behavioral coefficients which would make it unreasonable to assume that, say, the conditions 40 are satisfied. 13 9ii and 912 (and 91a below) denote rather com­ plicated constant terms. Each is a function of, among other behavioral constants, a«, ba and co. One can presumably choose values of these particular con­ “Inequality equations 31 and 32 imply the second stants so as to guarantee the nonnegativity ofrt and of the two stability conditions, that is, rD (and D* below). (ai~ ^ + (c2 —a2) < 0 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1712 FEDERAL RESERVE BULLETIN • OCTOBER 1967 REFERENCES 1. Brainard, W. C. “Financial Interme­ 6. Gurley, J. G., and Shaw, E. S. Money diaries and a Theory of Monetary Control,” in a Theory of Finance. Washington, D. C.: Yale Economic Essays, vol. 4 (1964), pp. The Brookings Institution, 1960. 431-82. 7. Phillips, C. A. Bank Credit. New 2. Brunner, K. “A Schema for the Supply York: Macmillan Co., 1923. Theory of Money,” International Economic 8. Rogers, J. H. “The Absorption of Review, vol. 2 (January 1961), pp. 79-109. Bank Credit,” Econometrica, vol. 1 (1933), 3. de Leeuw, F. “A Model of Financial pp. 63-70. Behavior,” The Brookings Quarterly Econo­ metric Model of the United States, edited by 9. Tobin, J., and Brainard, W. C. “Finan­ J. S. Duesenberry. Chicago: Rand McNalley cial Intermediaries and the Effectiveness of and Co., 1965. Monetary Control,” American Economic 4. Dewald, W. G. “Free Reserves, Total Review, vol. 53 (May 1963), pp. 383-400. Reserves and Monetary Control,” Journal of 10. Tobin, J. “Commercial Banks as Crea­ Political Economy, vol. 71 (April 1963), tors of ‘Money’,” Banking and Monetary pp. 141—53. Studies, edited by D. Carson. Homewood, 5. Gramley, L. E., and Chase, S. B., Jr. Ill.: Richard D. Irwin, 1963. “Time Deposits in Monetary Analysis,” Fed­ eral Reserve Bulletin, vol. 51 (October 11. Tobin, J. Unpublished manuscript on 1965), pp. 13 80-1406. monetary theory, Yale University. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will ap­ pear in the Board’s Annual Report, are now being released ap­ proximately 90 days following the date of the meeting and are subsequently being published in the Federal Reserve Bulletin. The record for each meeting includes the votes on the policy de­ cisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and finan­ cial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions for the meetings held in 1967 through May 23 were published in the Bulletins for July, pages 1115-51; August, pages 1326-32; and September, pages 1546-54. The record for the meeting held on June 20, 1967, follows: 1713 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1714 FEDERAL RESERVE BULLETIN • OCTOBER 1967 MEETING HELD ON JUNE 20, 1967 Authority to effect transaction in System Account. Over-all economic activity was expanding at a modest pace, ac­ cording to reports at this meeting, and prospects for growth later in the year had strengthened. Staff projections suggested that the current advance in real GNP, though moderate, would turn out to be higher than earlier estimates for the second quarter, and that the rate of growth would accelerate in the third quarter. The pro­ jections reflected an expectation that final sales would continue to expand rapidly in the second and third quarters, and that the effect on over-all activity of inventory adjustments—which had resulted in a slight decline in real GNP in the first quarter—would diminish progressively. The rate of business inventory accumulation declined further in April to 'a low level. It appeared likely that there would be little, if any, net accumulation of inventories in the second quar­ ter as a whole and that there would be a moderate amount of liquidation in the third quarter. Industrial production fell slightly further in May to a level about 2 per cent below the high of December 1966. Manufacturing employment declined again in May, but the reduction was less than in other recent months. The unemployment rate, at 3.8 per cent, was little changed from the April level. Government spending remained an important source of eco­ nomic stimulus, with Federal defense outlays continuing to ex­ ceed earlier estimates and State and local government expendi­ tures rising steadily. The staff projections suggested, however, that the rate of growth in defense outlays would moderate in the second and third quarters, and that private sales would account for a larger proportion of growth in total final sales than they had in the first quarter. Both consumer expenditures for goods and the volume of resi- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 1715 dential construction activity appeared to have gained some mo­ mentum recently. Retail sales were now reported to have in­ creased in April, contrary to the earlier indication that they had not changed in that month, and the advance estimate for May showed a further rise. Housing starts increased substantially in May, and various factors—including the further rise in building permits issued and the substantial increases in mortgage commit­ ments by major groups of lenders—pointed toward higher ex­ penditures on new housing in the months ahead. A Commerce-SEC survey of business plans, taken in late April and May, suggested that capital spending would rise moderately in the second half of the year. The survey implied a slightly small­ er rise in business outlays on plant and equipment in 1967 as a whole than had the survey taken 3 months earlier—-2.9 rather than 3.9 per cent. The downward adjustment, however, was at­ tributable mainly to a larger decline in actual outlays in the first quarter than had been implied by the plans reported earlier; for the last three quarters of the year changes in planned outlays were similar to those that had been indicated in the preceding survey. Average wholesale prices of industrial commodities remained stable in May. Nevertheless, the over-all wholesale price index rose as prices of farm products and foods increased sharply fol­ lowing 7 months of nearly continuous decline. In April the con­ sumer price index increased somewhat more than it had on the average during the winter and early spring. With respect to the U.S. balance of payments, the surplus on merchandise trade continued to increase in April and net repay­ ments of borrowings abroad by U.S. banks, which had enlarged the deficit on the “official reserve transactions” basis in the first 4 months of the year, were small in May. However, the available data on changes in U.S. reserves and liabilities in recent months suggested that the underlying payments deficit remained large. Abroad, bond yields had stabilized or risen recently in a num- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1716 FEDERAL RESERVE BULLETIN • OCTOBER 1967 ber of industrial countries, interrupting the downward trend of interest rates that had been under way since late in 1966. Condi­ tions in some foreign exchange markets had been unsettled as a result of the Middle-East hostilities in early June. System open market operations since the preceding meeting of the Committee had been directed toward maintaining prevailing conditions in the money market. The System supplied reserves early in the interval and again near its close, partly through pur­ chases of coupon-bearing Treasury securities. In the intervening period the System sold bills to offset part of the large volume of reserves supplied by declines in Treasury balances at Federal Reserve Banks. On June 15 the Treasury temporarily added to its balances by selling a special certificate of indebtedness in the amount of $87 million to the Federal Reserve. The certificate was redeemed the following day. Growth in nonborrowed reserves of member banks had mod­ erated further in May, and total reserves had declined slightly. In June aggregate bank reserves were rising relatively slowly. In the 3 weeks through mid-June free reserves averaged about $290 million, little changed from the average of $270 million for all of May and somewhat above the April level (revised) of $200 million. Member bank borrowings declined further to an aver­ age of about $75 million in the latest 3 weeks, from $95 million in May as a whole and $150 million in April. The Federal funds rate remained close to 4 per cent and rates on bank loans to Gov­ ernment securities dealers were generally stable. Interest rates on most types of market securities had risen on balance since the preceding meeting of the Committee, with yields on Treasury securities fluctuating widely. In short-term markets yields advanced on finance company paper, bankers’ acceptances, Federal agency securities, and negotiable CD’s. In late May and early June the market rate on 3-month Treasury bills extended its earlier persistent decline and on June 5 it reached a low for the year of 3.37 per cent. Subsequently the rate moved up and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 1717 was about 3.60 per cent on the day before this meeting. Yields on intermediate- and long-term Treasury bonds, which had risen to 1967 highs around mid-May, receded late in that month but then advanced sharply in the first half of June to levels above the May peaks. Corporate bond yields had drifted up further after stabilizing for a time in early June. The recent increases in short-term interest rates appeared to have been related in part to pressures associated with the mid­ June tax and dividend dates. Conditions in financial markets gen­ erally, however, were influenced by the continuing heavy volume of flotations of corporate and municipal securities, and by pros­ pects for a very large volume of Federal debt financing in the second half of the year. Public offerings of new corporate bonds in June appeared likely to be about one-fourth larger than the previous monthly record set in March, and an unusually large volume of offerings was already scheduled for the third quarter. It appeared that the Treasury would need to raise a substantial amount of new cash later in the year, although the magnitude of the Federal deficit in the second half of 1967 would depend in large part on the course of defense spending and on the size and effective date of any increase in income taxes, all of which were uncertain at this time. The Treasury was expected to undertake a short-term cash financing in July, but the size, terms, and date of the offering had not been determined as of the date of this meeting. In May contract interest rates on conventional mortgages on new homes advanced slightly following six consecutive months of decline, and secondary-market yields on Federally underwritten home mortgages rose fairly sharply. Inflows of funds to deposi­ tary-type institutions remained large, but the share of these funds used to expand mortgage holdings continued low. Thrift institu­ tions reportedly were still rebuilding liquidity primarily because of a relative scarcity of mortgages available for immediate acqui­ sition. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1718 FEDERAL RESERVE BULLETIN • OCTOBER 1967 At commercial banks business loans outstanding declined in May, but holdings of Treasury and municipal securities increased markedly. With offering rates on negotiable CD’s rising, large city banks recovered much of the CD run-off they had experienced in April. Inflows of other time and savings deposits continued large at banks generally, and total time and savings deposits expanded almost as rapidly from April to May as they had earlier in the year. Private demand deposits and the money supply, which had declined from March to April, rose substantially in May. As a result of sharp declines in Government deposits at banks, how­ ever, daily-average member bank deposits—the bank credit proxy —increased at an annual rate of only 2 per cent. In general, the deposit trends of May—rapid increases in time and savings and private demand deposits and sharp declines in Government deposits—appeared to be persisting in June. On balance, however, the bank credit proxy was expected to increase from May to June at an annual rate in the 7 to 8 per cent range. This was faster than from April to May, but considerably slower than in the first 3 months of the year. The probable growth rate of member bank deposits from June to July depended in large measure on the size and timing of the expected Treasury financ­ ing. On the assumption that the Treasury would sell, primarily to the banking system, about $4 billion of new securities shortly after mid-July, the bank credit proxy was projected to rise at an annual rate in the 10 to 12 per cent range if money market con­ ditions were unchanged. Continued rapid growth was projected in private demand deposits, as were some slackening in inflows of time and savings deposits and little change in Government deposits. The Committee decided that it would be appropriate at this time to maintain about the same conditions in the money market as had prevailed since the preceding meeting, partly because of the expected Treasury financing. Various other reasons were ad- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 1719 vanced by individual members against seeking firmer money mar­ ket conditions at present. Among these were the current pres­ sures in capital markets, the prospect—which some members thought had been enhanced recently—that action to raise Federal income taxes might be taken soon, and the absence to date of firm evidence that the widely expected upsurge in economic activ­ ity had already begun. While none of the members advocated seeking easier money market conditions, a number expressed concern about the con­ tinued uptrend in long-term interest rates, particularly in light of the risk that higher rates might slow the recovery in the housing industry and in the economy generally. Partly for this reason, the Committee agreed that purchases of coupon issues should con­ tinue to be utilized in meeting a portion of the needs for reserves that were expected to develop in coming weeks, although some reservations were again expressed concerning the possible adverse effects in the longer run of such purchases on the functioning of the market for coupon issues. Some members favored purchases of coupon issues on other grounds. These included considerations relating to the balance of payments, currently limited market sup­ plies of Treasury bills, and the composition of the System’s port­ folio of Government securities. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The economic and financial developments reviewed at this meeting suggest that economic activity is rising modestly, and that prospects for economic expansion later in the year have strengthened. Output is still being retarded by adjustments of excessive inventories, but growth in final demands continues strong, reflecting substantial further increases in Gov­ ernment expenditures and also some strengthening of consumer buying. Prices of farm products have turned up recently, but average prices of industrial commodities have remained stable. The pace of bank credit expansion has increased in recent weeks, but is still well below the rapid rate of earlier in the year. Most long-term interest rates have tended to rise further under the influence of heavy securities market financing, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1720 FEDERAL RESERVE BULLETIN • OCTOBER 1967 and most short-term yields have also increased. The balance of payments deficit has remained substantial despite some improvement in the foreign trade surplus. In this situation, it is the Federal Open Market Committee’s policy to foster money and credit conditions, including bank credit growth, conducive to renewed economic expansion, while recognizing the need for progress toward reasonable equilibrium in the country’s balance of pay­ ments. To implement this policy, while taking account of expected Treasury financing activity, the timing and quantity of which are still uncertain, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining about the same conditions in the money market as have prevailed since the preceding meeting of the Committee, while continuing to utilize operations in coupon issues in supplying part of reserve needs. Votes for this action: Messrs. Martin, Hayes, Brim­ mer, Maisel, Mitchell, Robertson, Scanlon, Sherrill, Swan, Wayne, and Patterson. Votes against this action: None. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material INTEREST ON DEPOSITS; that bank and Commercial State Bank of Rose­ RESERVES OF MEMBER BANKS; ville, Roseville, Michigan, under the charter and OPEN MARKET OPERATIONS title of The Detroit Bank and Trust Company. As An Act of Congress approved September 21, an incident to the consolidation, the three offices 1967 (Public Law 90-87) extended for one year of Commercial State Bank of Roseville would be­ the authority contained in the Act of September come branches of the resulting bank. Notice of 21, 1966, published in the 1966 Federal Reserve the proposed consolidation, in form approved by Bulletin at page 1451, to provide more flexibility the Board, has been published pursuant to said in regulating the maximum rates of interest or Act. dividends payable by banks and certain other Upon consideration of all relevant material in financial institutions on deposits or share accounts, the light of the factors set forth in said Act, in­ to fix higher reserve requirements on time deposits cluding reports furnished by the Comptroller of of member banks, and to permit open market the Currency, the Federal Deposit Insurance Cor­ operations by Federal Reserve Banks in direct poration, and the Attorney General on the com­ obligations of, or those fully guaranteed by, any petitive factors involved in the proposed merger, agency of the United States. The Act reads as It is hereby ordered, for the reasons set forth follows: in the Board’s Statement of this date, that said application be and hereby is approved, provided AN ACT that said consolidation shall not be consummated To extend for one year the authority for more (a) before the thirtieth calendar day following the flexible regulation of maximum rates of interest or dividends, higher reserve requirements, and open date of this Order or (b) later than three months market operations in agency issues. after the date of this Order. Be it enacted by the Senate and House of Repre­ Dated at Washington, D. C., this 28th day of sentatives of the United States of America in Congress assembled. That section 7 of the Act of September September, 1967. 21, 1966 (80 Stat. 823), is hereby amended by strik­ ing “one-year” and inserting in lieu thereof “two-year”. By order of the Board of Governors. Voting for this action: Chairman Martin, and Gover­ ORDER UNDER BANK MERGER ACT nors Mitchell, Daane, and Sherrill. Voting against this action: Governors Robertson, Maisel, and The following Order and Statements were issued Brimmer. by the Board of Governors approving an applica­ (Signed) Merritt Sherman, tion for the consolidation of banks: Secretary. [seal] THE DETROIT BANK AND TRUST COMPANY, DETROIT, MICHIGAN Statement The Detroit Bank and Trust Company, Detroit, In the matter of the application of The Detroit Michigan (“Detroit Bank”), with total deposits Bank and Trust Company for approval of consoli­ of about $1.5 billion, has applied, pursuant to the dation with Commercial State Bank of Roseville Bank Merger Act (12 U.S.C. 1828(c)), for the Board’s prior approval of the consolidation of that Order Approving Consolidation Of Banks bank with Commercial State Bank of Roseville, There has come before the Board of Governors, Roseville, Michigan (“Roseville Bank”), which pursuant to the Bank Merger Act (12 U.S.C. has total deposits of about $26 million.1 The banks 1828(c)), an application by the Detroit Bank would consolidate under the charter and name of and Trust Company, Detroit, Michigan, a State Detroit Bank, which is a member of the Federal member bank of the Federal Reserve System, for the Board’s prior approval of the consolidation of 'Figures are as of December 31, 1966. 1721 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1722 'FEDERAL RESERVE BULLETIN • OCTOBER 1967 Reserve System. As an incident to the consolida­ loans, and real estate mortgage loans from the tion, the three offices of Roseville Bank would be­ Roseville area. For the most part, however, this come branches of Detroit Bank, increasing the loan business is either beyond the capabilities number of its offices to 76. of Roseville Bank or of a type for which the Competition. The head office of Detroit Bank bank puts forth little or no competitive effort. is in downtown Detroit and the bank operates 72 Competition between Roseville Bank and De­ branches in the metropolitan area within a radius troit Bank, or any other bank, is limited by State of 25 miles. The Detroit Metropolitan Area, which law which precludes entry into Roseville by other has a population in excess of 4 million, consists banks through the establishment of de novo of Macomb, Oakland, and Wayne Counties. Rose­ branches. A new bank could he established in ville Bank operates its main office and two bran­ Roseville, however, and it does not appear that ches in Roseville, an incorporated town in Ma­ the replacement of Roseville Bank by offices of comb County situated about three miles from the Detroit Bank would be an effective deterrent to northeastern boundary of Detroit. Roseville has the formation of such a bank. New banks have a population of about 60,000 and is principally been established, and are being operated success­ a residential community. fully, in various parts of the Detroit Metropolitan Detroit Bank, with about 17.8 per cent of the Area in competition with branches of the large deposits, is the second largest of the 30 com­ Detroit banks. mercial banks operating offices in the portion of In these circumstances, little significance at­ the Detroit Metropolitan Area which it serves. taches to the assertion of applicant that it does not The largest and third largest banks hold, respec­ compete in a meaningful way in Roseville because tively, about 34 per cent and 17.7 per cent of the of its correspondent relationship with Roseville commercial bank deposits in the area served by Bank. The effect of the consolidation on competition Detroit Bank. Roseville Bank, with about threewould not be significantly adverse. tenths of one per cent of such deposits, ranks Financial and managerial resources and pros­ twentieth. However, the relevant local market for pects. The banking factors with respect to Detroit assessing the effects of the proposed transaction Bank are satisfactory, as they would be with re­ on competition consists of the Roseville area spect to the resulting bank. only. Roseville Bank was established in 1951; the Roseville Bank operates the only commercial bank’s net income in 1966 reached an all time banking offices in Roseville. The nearest offices high, but its earnings were still somewhat below of Detroit Bank to the offices of Roseville Bank the average for other banks similarly situated. are its Gratiot-Eastwood and Eight Mile-Dresden The capital of Roseville Bank needs to be strength­ branches, both about four and one-half miles ened and the bank lacks management depth. In southwestwardly from Roseville Bank’s main addition, there is serious disharmony among the office, and its Garfield-Metropolitan Parkway directors of Roseville Bank. These considerations branch, about three miles northwest of the Ma­ raise doubts about the future of the bank as an comb Mall office of Roseville Bank. In each effective competitive force. instance there are offices of other banks in the While it can be contended that there may be intervening area. Overall, there are 40 offices of other feasible alternatives to this proposal, none 11 banks situated within a five-mile radius of the can be realistically presented and documented in three offices of Roseville Bank. Roseville Bank the framework within which this merger applica­ draws the preponderance of its business from with­ tion is being considered. Proposals must be consid­ in this area and holds about 5 per cent of area ered in seriatim and only as those first presented deposits; the three branches of Detroit Bank hold are rejected. In the judgement of the Board the about 8 per cent of such deposits. anticompetitive effects of the particular proposal The three offices of Detroit Bank situated with­ are not sufficient to warrant rejection and thereby in five miles of Roseville Bank’s offices obtain less require the negotiation of a second alternative. than 3 per cent of their deposits and less than 2 per Meanwhile the weakening in the capacity to cent of their deposit accounts from the Roseville serve the community arising from the lack of area. Detroit Bank derives a sizable aggregate managerial depth and disharmony among the dollar amount of commercial loans, consumer directors should be remedied. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1723 The consolidation would immediately and con­ The probable effect of the consolidation will clusively resolve the managerial and related prob­ be to make entry into Roseville by new charter lems of Roseville Bank. more difficult, since a new bank would have to Convenience and needs of the community. The compete against the vastly larger Detroit Bank. effect of the consolidation on banking convenience Further, since Michigan law will permit Detroit and needs would be limited to the Roseville area. Bank to branch in Roseville only until a new bank Roseville Bank has not been aggressive in offer­ is formed, there will be an incentive for Detroit ing banking services. Although the bank enjoys Bank to preempt favorable banking locations exclusive branching privileges in Roseville, it by rapidly establishing new branches, thus making operates only one banking office per 20,000 resi­ it even more difficult for a new bank to enter. dents. This factor is mitigated to some extent by The service area of Roseville Bank lies wholly the banking offices located on the periphery of the within the service area of Detroit Bank. The con­ community. However, the replacement of Rose­ solidation will eliminate existing competition and ville Bank by offices of Detroit Bank would result foreclose the development of further competition in the addition of a more convenient alternative between the two banks in the course of eliminating source of full-scale banking services for Roseville. Roseville Bank as a viable banking alternative. Summary and conclusion. In the judgement of Detroit Bank contends that it does not compete the Board, the proposed consolidation would re­ in a meaningful way in Roseville because of its solve the managerial and related problems of Rose­ correspondent-bank relationship with Roseville ville Bank and benefit the banking convenience Bank. If it is true that Detroit Bank does not com­ and needs of the Roseville community, without pete with correspondents, then the effect of the resulting in any significantly adverse consequences consolidation on competition will be even more for banking competition. severe since Detroit Bank maintains correspondent Accordingly, the Board concludes that the appli­ relationships with three banks operating in the cation should be approved. periphery of Roseville Bank’s service area. Concentration. The transaction will increase Dissenting Statement of the concentration of banking resources and en­ Governors Robertson, Maisel, and Brimmer hance the already dominant position of the large By approving the application in this case, the Detroit banks. The three largest banks—including majority gives its sanction to the replacement of Detroit Bank, in the area including and surroundthe $26 million Roseville Bank with offices of the pcr cent of the commercial bank deposits, and $1.5 billion Detroit Bank, the second largest operate over 50 per cent of the commercial bank­ bank in the Detroit Metropolitan Area. In our ing offices, in the portion of the Detroit Metro­ judgment, the consequences of the transaction politan Area served by Detroit Bank; the six for banking competition will be significantly ad­ largest banks hold about 88 per cent of the com­ verse, without offsetting benefits under the banking mercial bank deposits, and operate about 77 per factors or the convenience and needs factor. cent of the commercial banking offices, in this Competition. The Roseville Bank has an eco­ area. This heavy concentration will certainly not nomical important locational advantage by virtue be diminished by authorizing these large banks to of Michigan’s branch banking laws, which prohibit expand by consolidation into positions that are ex­ the establishment of new branches in Roseville tremely favorable and, under the banking laws of except by Roseville Bank. While several banking Michigan, virtually amount to area monopolies. offices are locted within the periphery of Rose­ On the contrary, acquisitions by these large banks ville Bank’s service area, including three offices of in nearby communities where they cannot branch Detroit Bank, no other bank is located in Roseville. de novo enables them to enlarge the geographical Roseville Bank’s very rapid growth—it is the sphere of their dominance. second fastest growing bank in the Roseville area Following the acquisition of Roseville Bank by —and its high rate of return in recent years arc Detroit Bank, in the area including and surround­ indicative of the locational advantage it enjoys. ing Roseville, the three largest banks will increase This advantage is also reflected, no doubt, in the their share of this market by over 10 per cent, and very high premium that will be paid for the stock they will hold nearly 50 per cent of the commer­ of Roseville Bank. cial bank deposits, and operate about 44 per cent Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1724 FEDERAL RESERVE BULLETIN • OCTOBER 1967 of the commercial banking offices; the six largest Convenience and needs of the community. The banks in Detroit will hold over 70 per cent of the available evidence indicates that the banking needs commercial bank deposits, and operate nearly 63 of the Roseville area are being met satisfactorily per cent of the commercial banking offices, in this and without undue inconvenience. There are 40 area. offices of I 1 banks, including three offices of Financial and managerial resources and pros­ Detroit Bank, situated within a five-mile radius of pects. The serious disharmony alleged to exist the three offices of Roseville Bank. Twenty-four among the directors of Roseville Bank is not of these 40 offices are operated by the six largest apparent from the bank’s performance. It is the banks in Detroit, which hold total deposits in ex­ second fastest growing bank in the Roseville cess of $7 billion and offer a full range of banking area. In the five-year period ended December 3 1, services. Further, subsequent to the filing of the 1966, the deposits of Roseville Bank increased by application for its consolidation with Detroit Bank, about 140 per cent and its loans increased by Roseville Bank withdrew a pending request for about 220 per cent. In 1966, Roseville Bank’s permission to establish an additional branch in earnings were the highest in its history; the bank’s Roseville. average net income for the past three years com­ The consolidation will, of course, eliminate pares favorably with the average for banks of Roseville Bank as an alternative source of banking comparable size. services for the Roseville area; and because of the Largely because of the rapid growth of Rose­ resources of Detroit Bank, the transaction will ville Bank, its capital needs to be strengthened. tend to impede the addition of an alternative The bank has made no effort, and has no immedi­ source of banking services through the formation ate plans, to augment its capital, however. Rose­ of a new bank in Roseville. ville Bank assertcdly lacks management depth, Summary and conclusion. In our judgment, but it is acknowledged that no attempt has been the consolidation of Roseville Bank and Detroit made to recruit additional managerial talent. Bank will have a significantly adverse elfcct on The problems of Roseville Bank cannot be competition, and the consequences of the trans­ fairly characterized as serious, but the directors action for the banking convenience and needs of concluded that some disposition of the bank is the Roseville community will be adverse, as well. desirable and that consolidation with Detroit Further, from our reading of the record, there is Bank would best serve the interests of the stock­ no basis for concluding that Roseville Bank has holders. Under the criteria of the Bank Merger significant problems for which there is no feasible Act, however, the public interest transcends the solution except consolidation with Detroit Bank. interests of stockholders; further, the Act was not There can be no doubt that the Bank Merger designed to permit an anticompetitive bank amal­ Act became law as a result of the concern of gamation to serve as a convenient way out for Congress—in the face of a marked trend toward directors who have difficulty working together. increased concentration in banking resources—for And the record, in our judgement, simply does the future of our banking structure. Increases in not support the conclusion that Roseville Bank the size of the largest banks and reductions in the has significant problems for which there is no number of banks, as well as the loss of competi­ feasible solution except consolidation with Detroit tion between amalgamated banks, were major Bank. Assuming that Roseville Bank had signifi­ points emphasized in pointing up the need for the cant problems which could not be resolved under legislation. See, e.g., S. Rep. No. 196, 86th Cong., the existing ownership and directorate, the fact 1st Sess. 8 (1959); H.R. Rep. No. 1416. 86th remains that any Michigan bank with its head Cong., 2d Sess. 3-5 (1960). Indeed, Detroit is office within 25 miles of Roseville Bank is eligible listed in the legislative history among the principal under State law to consolidate with Roseville financial centers having the highest concentration Bank. Several of these alternatives would be sig­ of banking resources. S. Rep. No. 196, op, cit., p. nificantly less anticompetitive than the consoli­ dation of Roseville Bank with Detroit Bank; in 27. Clearly, the Board should not sanction a dimi­ addition, there is no reason to conclude that the nution in the number of banking alternatives in stock of Roseville Bank would not be an attractive the Detroit area, particularly through acquisitions investment for individuals or groups. by the already dominant banks, in the absence of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1725 strong offsetting benefits under the banking factors application be and hereby is approved, provided or the convenience and needs f*actor. that the acquisition so approved shall not be con­ We would deny the application. summated (a) before the thirticlh calendar day following the date of this Order or (b) later than ORDER UNDER SECTION 3 OF BANK three months after the date of this Order unless HOLDING COMPANY ACT such period is extended for good cause by the The Board of Governors issued the following Board or by the Federal Reserve Bank of Rich­ Order and Statement approving an application mond pursuant to delegated authority. by a bank holding company for acquisition of Dated at Washington, D. C., this 15th day of voting shares of a bank: September, 1967. By order of the Board of Governors. VIRGINIA COMMONWEALTH BANKSHARES, INC., RICHMOND, Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, Brimmer, and VIRGINIA Sherrill. Absent and not voting: Governor Maisel. In the matter of the application of Virginia (Signed) Merritt Sherman, Commonwealth Bankshares, Inc., Richmond, Vir­ Secretary. ginia, for approval of acquisition of more than 50 [seal] per cent of the voting shares of American National Bank, Fredericksburg, Virginia. Statement Virginia Commonwealth Bankshares, Inc., Rich­ Order Approving Application Under mond, Virginia (“Applicant”), a registered bank Bank Holding Company Act holding company, has applied to the Board of There has come before the Board of Governors, Governors, pursuant to section 3(a)(3) of the pursuant to section 3(a)(3) of the Bank Holding Bank Holding Company Act of 1956 (12 U.S.C. Company Act of 1956 (12 U.S.C. 1842(a)(3)) 1842(a)(3)), for prior approval of the acquisition and section 222.4(a) (3) of Federal Reserve Regu­ of more than 50 per cent of the voting shares of lation Y (12 CFR 222.4(a)(3)), an application American National Bank, Fredericksburg, Vir­ by Virginia Commonwealth Bankshares, Inc., ginia (“Bank”). Applicant presently controls nine Richmond, Virginia, for the Board’s prior approval banks which operate 64 offices with total deposits of the acquisition of more than 50 per cent of the of $334 million.1 Bank’s two offices have $3 mil­ voting shares of American National Bank, Freder­ lion in total deposits. icksburg, Virginia. Views and recommendation of supervisory au­ As required by section 3(b) of the Act, the thority. As required by section 3(b) of the Act, Board notified the Comptroller of the Currency the Board notified the Comptroller of the Cur­ of the application and requested his views and rency of receipt of the application and requested recommendation. The Comptroller recommended his views and recommendation thereon. The approval. Comptroller recommended approval of the appli­ Notice of receipt of the application was pub­ cation. lished in the Federal Register on May 12, 1967 Statutory considerations. Section 3(c) of the Act (32 Federal Register 7189), providing an oppor­ provides that the Board shall not approve an tunity for interested persons to submit comments acquisition that would result in a monopoly or and views with respect to the proposal. A copy of would be in furtherance of any combination or the application was forwarded to the United States conspiracy to monopolize or to attempt to monop­ Department of Justice for its consideration. Time olize the business of banking in any part of the for filing comments and views has expired and all United States. Nor may the Board approve any those received have been considered by the Board. other proposed acquisition the effect of which, in It is hereby ordered, for the reasons set forth any section of the country, may be substantially in the Board’s Statement of this date, that said ' Banking data are as of December 31, 1966, unless * The 1966 amendment to the Merger Act was designed to establish stricter standards for bank amalgamations than those otherwise noted, and reflect acquisitions and mergers of the 1960 law. See, c.^., H.R. Rep. No. 1221, 89th Cong., approved by appropriate supervisory authorities to 2d Sess. 1 (1966); see also, United States v. First City Na­ tional Bank, 386 U.S. 361 (1967). date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1726 FEDERAL RESERVE BULLETIN • OCTOBER 1967 to lessen competition, or tend to create a monop­ per cent as of June 30, 1966), the deposits con­ oly, or which in any other manner would be in trolled by Applicant upon approval would be but restraint of trade unless the Board finds that the a small portion thereof; two institutions operating anticompetitive effects of the proposed transaction in the Fredericksburg area (Farmers & Merchants are clearly outweighed in the public interest by the State Bank and the National Bank of Fredericks­ probable effect of the transaction in meeting the burg) would still have control of 75 per cent of convenience and needs of the community to be total deposits. served. In each case the Board is required to take Considering the probable effect of Applicant’s into consideration the financial and managerial acquisition of Bank on existing and potential com­ resources and future prospects of the bank holding petition, the Board concludes that considerations company and the banks concerned, and the con­ relating thereto do not preclude approval of the venience and needs of the community to be served. proposal. Applicant’s subsidiaries have no offices Competitive effect of proposed transaction. located within Bank’s primary service area, and There are nine banking organizations (including none derives any substantial business from that five bank holding companies) in Virginia which area. Applicant’s nearest subsidiary to Bank is have deposits in excess of $100 million. In the The Bank of Prince William in northern Virginia, aggregate, these organizations account for about the closest office of which is about 25 miles north 62 per cent of the deposits and 51 per cent of the of Fredericksburg. The intervening area contains offices of all commercial hanks in the State. Appli­ two offices of a major competitor of Bank, The cant’s position as the fourth largest of these Peoples Bank of Stafford, and a second bank, The organizations and the second largest holding com­ First National Bank of Quantico. There is no pany would be unchanged following consum­ overlap of the service areas of Bank and The mation of the proposed acquisition. Its share of Bank of Prince William, and the record estab­ total deposits and commercial banking offices, lishes to the Board’s satisfaction that no competi­ presently about 6.3 per cent and 7.5 per cent, tion exists between them, nor is competition would be increased by less than .1 per cent likely to develop in any significant volume in and .2 per cent, respectively. the future. Bank’s primary service area,2 which includes Applicant’s subsidiary next closest to Bank the City of Fredericksburg and portions of Caro­ is the Bank of Virginia, headquartered in Rich­ line, King George, Spotsylvania, and Stafford mond, some 50 miles to the south of Fredericks­ Counties within a 10-17 mile radius, is located burg. The largest bank in Applicant’s system, about midway between Richmond, Virginia, and Bank of Virginia, has made substantial loans to Washington, D.C., near a major interstate highway two individuals and their related businesses in connecting them. In addition to its main office Fredericksburg. While the aggregate of these loans in downtown Fredericksburg, it has a branch represents only 1.5 per cent of Bank of Virginia’s (which is designated as a teller facility) just out­ total loans, it exceeds Bank’s entire loan portfolio. side of the city limits. The estimated population of Applicant states, however, that Bank of Virginia Fredericksburg is 15,000 and that of Bank’s was approached by these borrowers with the ex­ primary service area about 33,000. Based on total planation that the service they needed was not deposits, Bank ranks fifth of six banks that have available in Fredericksburg. Moreover, one of the 13 offices located in or immediately near its foregoing loan relationships was established 12 primary service area. years ago and the other just prior to the opening Consummation of the proposed transaction of Bank. No bank in Fredericksburg offers retail would represent the initial entry of a bank holding or floor plan financing to automobile dealers, and company into the Fredericksburg area but would the lending limits of those banks are relatively small. By virtue of its size and because of its rec­ not alter the number of banking alternatives repre­ ognized experience in certain types of lending, sented therein. As Bank controls only a small Bank of Virginia is reasonably sought as a direct portion of the Fredericksburg area deposits (5.2 source of credit of a specialized nature, particu­ larly because there are no banks in Fredericksburg 2 The area from which Applicant estimates that Bank derives about 83 per cent of its total deposits of handling certain sizes and types of loans without individuals, partnerships, and corporations. the assistance of a correspondent bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1727 Bank and Bank of Virginia do not compete to nopoly nor be in furtherance of any combination any significant degree for deposits originating in or conspiracy to monopolize or attempt to monop­ the Fredericksburg area. Bank of Virginia does olize the business of banking in any relevant area not directly solicit, and derives but a nominal of the State. The Board further concludes that amount of deposits from the area. Prospects for Applicant’s acquisition of Bank would not sub­ future competition between the two banks are stantially lessen competition, tend to create a remote in view of Bank’s small size, its limited monopoly, or operate in restraint of trade in any experience, and the provision of State law that relevant area. prevents Bank of Virginia from establishing new Financial and managerial resources and future offices in the Fredericksburg area. Discussed later prospects. The financial history and condition of in another context is Applicant’s proposal to make Applicant are satisfactory and its prospects are available, through Bank, Bank of Virginia’s considered favorable. Deposits and loans of the Charge-Plan, a bank credit card program presently subsidiary banks have experienced favorable offered to the Fredericksburg area by Bank of growth and their earnings are good. Its lead bank Virginia through Farmers & Merchants State Bank, has a comprehensive training program and has Fredericksburg. In the Board’s judgment, the vol­ developed a source of managerial talent. The ume of Bank of Virginia’s credit card business general quality of operation and the sound con­ derived in the Fredericksburg area does not con­ dition of the subsidiary banks reflect the satis­ stitute this aspect of its banking operations a factory quality of their management and the significant competitive factor even though, should effective administrative control exercised by the Bank remain independent, it might possibly offer, senior officials of Applicant. as an agent for some other large bank, an alterna­ Bank has experienced good growth during the tive credit card plan to the area. Nor, should this short period of its existence. While its capital is application be approved, does the Board view as strong and its general condition is reasonably a realistic possibility any significant elimination of satisfactory, analysis of Bank’s total loan port­ competition between Bank and Farmers & Mer­ folio reflects the absence of, and need for, ex­ chants Bank for other types of banking business perienced management and supervision, provision merely because both banks would offer Bank of for which will be made by Applicant. In this re­ Virginia’s credit card plan. A more likely result, it gard, Bank’s prospects as a subsidiary of Appli­ would appear, would be increased competition cant are considerably better than would be the between the two Fredericksburg competitors for case if Bank were to continue its present course deposit and related business generated by credit of independent operation. Bank’s president re­ card customer relationships. tired at the end of 1966 and has not yet been With the exception of a newly chartered bank replaced. The remaining directors are business located 12 miles from Fredericksburg, Bank is and professional men with no banking experience the smallest institution operating in its service prior to joining Bank’s board. Bank’s vice presi­ area. While Bank’s principal competitors are much dent and cashier—its chief operating officer—is larger than it, Bank has been successful in at­ experienced and able. However, other than this tracting the deposit accounts of individuals and officer, Bank has no experienced management. small business concerns, and has experienced good Affiliation with Applicant will provide Bank with growth in its two and one-half years of operation. access to experienced executive personnel with While there has been no evidence that Bank has potential for advancement, and a readily available been unable to compete with these institutions, source of management trainees. In view of the the entry of Applicant into the Fredericksburg above considerations, Bank's prospects are consid­ area, through acquisition of the smallest bank in ered to be only fair at the present time. However, the city, should serve to stimulate competition with strengthened management and the implemen­ among and between the Fredericksburg banks tation of Applicant’s programs, Bank’s prospects and develop a more balanced situation with re­ for sound growth appear favorable, a considera­ spect to distribution of deposits. tion which lends weight toward approval of the In summary, the Board concludes on the basis application. of the record presented that consummation of Convenience and needs of the community in­ Applicant’s proposal would not result in a mo­ volved. Bank’s service area is primarily industrial Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1728 FEDERAL RESERVE BULLETIN • OCTOBER 1967 in nature with several large manufacturing con­ troller of the Currency to permit a national bank cerns in or near the City of Fredericksburg. Sev­ to establish a Commingled Investment Account. eral United States Government military installa­ In its opinion, the Court differed with the views of tions, a college of the University of Virginia, and the Board of Governors in its interpretation pub­ the steady influx of a large number of tourists, lished in the 1965 Bulletin at page 1410, in attracted by the local historical shrines, contribute which it was concluded that interlocking personnel considerably to the local economy. It is reasonably relationships between the bank and the Account foreseen that the aforementioned commercial activ­ were not prohibited by section 32 of the Banking ity will contribute substantially to the continued Act of 1933. The opinion of the Court is as economic growth and expansion of the area. follows: With the exception of credit needs of a special­ ized nature that are not offered locally but are In the United States District Court otherwise being provided, as described above, it for the District of Columbia appears that the Fredericksburg area banks are No. 1083-66 presently serving the needs and requirements of INVESTMENT COMPANY INSTITUTE, ET AL., the area involved. However, as the economy con­ tinues to grow, the absence of a full range of PLAINTIFFS, locally available credit services will become more vs. acute. Consummation of the proposal would make the resources, services, and expertise of Appli­ WILLIAM B. CAMP, COMPTROLLER OF THE CURRENCY, DEFENDANT cant’s group, particularly the Bank of Virginia, more readily available to the Fredericksburg com­ G. Duane Vieth, Esq., James F. Fitzpatrick, Esq., munity. Applicant’s ownership of Bank would Charles R. Halpern, Esq., Arnold & Porter, Esqs., and afford Bank’s customers experienced management Robert L. Augenblick, Esq., for plaintiffs. Barefoot Sanders, Assistant Attorney General, Har­ and new credit services, including an alternative land F. Leathers, Esq., Irwin Goldbloom, Esq., and source for Bank of Virginia’s credit card plan, Stephen M. Truitt, Esq., Department of Justice, David which Applicant proposes to make available G. Bress, United States Attorney, and Joseph M. through Bank. As earlier mentioned, this credit Hannon, Esq., Assistant United States Attorney, for defendant. card plan is presently available through Farmers & Merchants State Bank and would be offered Opinion through Bank under generally the same arrange­ This action is brought against the Comptroller of ments. Through access to this plan. Bank’s cus­ the Currency by the Investment Company Institute in tomers will be afforded specified credit and loan its representative capacity of the open-end investment privileges, the use of which is reasonably cal­ companies, investment advisers and principal under­ culated to increase and facilitate commercial writers which comprise its membership. The Invest­ ment Company Institute (hereinafter called the Insti­ transactions. These considerations, and the antici­ tute) is an unincorporated association, having its prin­ pated improvements in both experience and depth cipal place of business in the city, county and state of of Bank’s management, weigh in favor of approval New York. The Institute is a national association, of the application. having as its members 177 open-end management in­ vestment companies and their 88 investment advisers Summary and conclusion. On the basis of all and 78 principal underwriters. The open-end manage­ the relevant facts contained in the record and in ment investment companies which are members of the light of the factors set forth in section 3(c) the Institute have assets of $36 billion, representing of the Act, it is the Board’s judgment that the about 94 per cent of the assets of all such companies in the United States, and have approximately 3.5 proposed transaction would be in the public in­ million shareholders. The other plaintiffs in this action terest and that the application should be approved. are several individual members of the Institute. They seek an injunction to restrain the Comptroller from authorizing national banks to collectively invest funds COMMINGLED INVESTMENT ACCOUNT tendered to the bank as managing agent solely for On September 27, 1967, the United States investment purposes. They also pray for a declaratory judgment adjudicating the pertinent regulation promul­ District Court for the District of Columbia, sus­ gated by the Comptroller to be invalid. tained a suit brought by the Investment Company The action is now before this court on cross mo­ Institute, challenging the authority of the Comp­ tions for summary judgment, all of the parties agree- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1729 ing that no factual issues exist and that the legal Securities and Exchange Commission pursuant to the issues are ripe for disposition by summary proceed­ Securities Act of 1933, 15 U.S.C. § 77, for the purpose ings. of registering the participating interests or units to be It is first necessary to review and to delineate the issued by its Commingled Investment Account. The factual background upon which the issues in this registration statement concerning those participating action arose and within which these motions are made. interests or units became effective on June 14, 1966. In September of 1962 the statutory authority to regu­ From that date the Bank has offered and sold to the late the fiduciary activities of national banks was public participating interests or units issued by the transferred from the Board of Governors of the Commingled Investment Account by means of the Federal Reserve System to the Comptroller of the prospectus for the First National City’s Commingled Currency. Pub. L. 87-722, 76 Stat. 668, 12 U.S.C. Investment Account. § 92 a. Pursuant to this authority, the Comptroller Before proceeding to the merits of this controversy, caused to be published in the Federal Register for it is best at this time to specifically describe the February 5, 1963, a proposed revision of the fiduciary operation of a mutual fund and the operation of the regulation, 12 C.F.R. § 9. In addition to the types of Commingled Investment Account (hereinafter referred collective investment funds permitted under the prior to as the Account) so that a better understanding of regulation, this proposed revision provided that na­ the problem can be achieved. tional banks were authorized to invest funds held in Generally, “mutual funds” are open-end manage­ the capacity of managing agent in a collective invest­ ment companies engaged in the business of continu­ ment account, 12 C.F.R. § 9.18(a)(3).1 Moreover, ously issuing and offering for sale redeemable securi­ the proposed revised regulation allowed the Comp­ ties which represent an undivided interest in the fund’s troller to approve collective investment of such funds assets. Most mutual funds are corporate in form and in manners other than those expressly provided by the securities issued by them usually consist of capital Regulation 9, 12 C.F.R. § 9.18(c)(5).2 stock. However, there are a number of mutual funds The Comptroller invited national banks and other in a variety of non-corporate forms and the securities interested parties to submit comments pertaining to the issued by some of them are variously denominated as proposed regulation. Plaintiff Institute, on behalf of its beneficial interests, participating agreements, and the members, participated to the full degree permitted like. The proceeds from the sale of the securities issued and submitted a statement in opposition to the pro­ by a mutual fund are invested in a portfolio of securi­ posed regulation. It premised its argument on the same ties of various kinds, in accordance with the stated basis that it is presenting before this court, namely, investment policy of the particular fund. Some funds that the revised regulation would allegedly permit invest primarily in securities offering current income; activity prohibited by 12 U.S.C. § 92(a), and certain others concentrate on long-term growth securities; provisions of the Glass-Steagall Act, as amended, 12 still others specialize in particular industries or classes U.S.C., § § 24, 78, 377 and 378. Notwithstanding this of securities; and many offer various combinations of opposition the final regulation was adopted by the objectives. The shareholder in a mutual fund is en­ Comptroller on April 5, 1963, and revised by minor titled at any time to redeem his interest, usually at modifications on February 5, 1964, 12 C.F.R. § 9.18. net asset value, or in a few instances upon payment Pursuant to the regulation, on May 10, 1965, the of a charge. To facilitate this redemption privilege as Comptroller approved a plan submitted by First Na­ well as to establish a price at which new shares are tional City Bank of New York (hereinafter referred being offered, the value of a share in a mutual fund to as the Bank) for the establishment and operation is calculated regularly, typically twice daily, on the of a collective investment fund, called the Com­ basis of the market value of the securities held by the mingled Investment Account, under Regulation 9, 12 fund. Because of the continuous process of redemp­ C.F.R. § 9. The plan as outlined by the Bank differed tion, the mutual fund would be restricted and con­ from the specifically enumerated collective investment tracted in size, unless it continuously issued and funds authorized by the Comptroller’s revised Regu­ offered new securities for sale. lation, but the bank, pursuant to 12 C.F.R. § 9.18(c) Except in unique circumstances, virtually no shares (5) sought and obtained the Comptroller’s written in mutual funds are traded from one investor to approval of the plan. another, and there is no significant trading market for On April 20, 1966, the Bank registered its Com­ such shares. In almost all cases, shareholders in mingled Investment Account with the Securities and mutual funds desiring to obtain cash for their shares Exchange Commission pursuant to the Investment redeem them with the issuing company. The securi­ Company Act of 1940, 15 U.S.C. § 80 as an open-end ties issued by most mutual funds are offered to the management investment company. On the same date, public at a price which includes a sales commission the Bank filed a registration statement with the or sales load. There are some mutual funds whose shares are sold with no sales commission being 1 (3) In a common trust fund, maintained by the charged. These latter funds are frequently called “no bank exclusively for the collective investment and load” mutual funds. The activities of mutual funds are reinvestment of monies contributed thereto by the under the control of a board of directors or board of bank in its capacity as managing agent under a trustees. Directors or trustees are elected annually by managing agency agreement expressly providing that such monies are received by the bank in trust. the vote of a majority of the fund's outstanding voting 2 (5) In such other manner as shall be approved securities. in writing by the Comptroller of the Currency. Mutual funds usually contract an outside investment Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1730 FEDERAL RESERVE BULLETIN • OCTOBER 1967 adviser for investment advice and other management D.Ch. 356 (1944), 154 A.L.R. 406, Corporations, 18 services, and with a principal underwriter for the Am. Jur. 2d § 463 (1965). distribution of the fund’s shares, pursuant to the The management function of the mutual fund lies statutory pattern established by the Investment Com­ with the board of directors. They have essentially the pany Act of 1940, 15 U.S.C. 8 80a-15. The investment equivalent powers as any corporate board of directors. adviser of a mutual fund furnishes advice to the fund In the same manner they are also responsible to their with respect to its investment portfolio and the securi­ shareholders as fiduciaries. Pepper v. Litton, 308 U.S. ties it should buy, hold, and sell. In some cases the 295, 60 S.Ct. 238, 84 L.Ed. 281 (1939), Brown v. adviser is empowered to purchase and sell securities Bullock, 194 F.Supp. 207 (S.D.N.Y. 1961) affirmed for the fund. Some investment advisers also furnish 294 F.2d 415 (2nd. Cir. 1961). supervisory and administrative services to the mutual The board of directors within its broad scope of fund. The investment adviser receives compensation authority has the power to enter into contracts with for its services, usually in the form of a fee based on the other two members of the mutual fund community, the total value of the assets being managed. that is the investment advisers and the underwriters. The principal underwriter of a mutual fund is en­ The functions performed by the latter two members of gaged in the business of selling and distributing the the mutual fund community is essential for the propa­ securities issued by the fund to the investing public gation of the investment or the mutual fund corpora­ through brokers or dealers, or directly through the tion. The interrelationship of these independent enti­ underwriter’s own salesmen, or both. The principal ties is one of contract which essentially determines the underwriter either purchases the securities issued by respective position occupied within the structure by the fund for resale or acts as agent for the fund in each member. The independence of each member is distributing the securities. Except in the case of a governed by statute as is their interdependence; see no-load fund, the principal underwriter receives a fee the Investment Company Act of 1940, 15 U.S.C. for its services, usually in the form of a portion of the § 80a-1 et seq. sales commission included in the selling price of the The above few paragraphs outline the general shares issued by the mutual fund. operation of the mutual fund structure. A similar out­ Mutual funds are required to be registered with the line is now presented for the operation of the Account Securities and Exchange Commission pursuant to the as created by the Bank and approved by the Comp­ Investment Company Act of 1940. The activities of the troller pursuant to Regulation 9. mutual funds and their relationship with affiliated The Account as established by the Bank, operates persons and others are all subject to regulation under as follows: the investor-customer tenders his funds, the Act. The investment advisers and principal under­ $10,000 or more, to the Bank pursuant to a broad writers who are plaintiffs herein, perform their services authorization making the Bank the customer’s man­ for the mutual funds they serve pursuant to contracts, aging agent. There is thus created a principal-agent the terms, execution and continuation of which are relationship between each individual investor-customer subject to the provisions of Section 15 of the Invest­ and the Bank. The authorization includes specific ment Company Act of 1940, 15 U.S.C. § 80a-15. The authority for the Bank to invest the customer’s funds, securities issued by each of the mutual fund members together with the funds of other customers who have of the Institute are registered with the Securities and given the equivalent authorization, through the com­ Exchange Commission pursuant to the Securities Act mingled Account. Funds in the commingled Account of 1933, 15 U.S.C. § 77. All such securities are offered are invested in a pool of securities, principally com­ to the investing public by means of a prospectus which mon stocks and securities convertible into common is initially filed with the Securities and Exchange stocks, offering the opportunity for long-term growth Commission under the Securities Act of 1933 as part of capital and income. The Account is divided into of the registration statement for the securities to which “units of participation” of equal value in order to the prospectus relates. determine conveniently the proportionate interest of As can be readily ascertained, the mutual fund each participant. No certificates indicating the “units community is composed of three principal members. of participation” are issued by the Bank; however, First the body corporate of the fund itself whose the participant is informed by a non-negotiable docu­ membership is the general investing public. This re­ ment as to how many “units of participation” are lationship is analogous to the common productive contained in his account. corporate structure. However, the primary function of A participation is transferable only to another per­ the investment corporation is to obtain the objectives son who has validly appointed the Bank as managing which are outlined in their charter through the mutual agent, and, because of the underlying agency relation­ investment of the funds contributed by the “share­ ship, the interest of participant terminates upon his holders”. Alfred Inv. Inst. v. S.E.C., 151 F.2d 254 death or incompetency and his funds are withdrawn (1st Cir. 1945) cert, denied 326 U.S. 795, 66 S.Ct. from the Account and held for his legal representa­ 486, 90 L.Ed. 483 (1945). The relationship between tives. There is no sales charge imposed on amounts the shareholder and the body corporate is plainly one invested in the commingled Account nor is there any of contract. Stevenot v. Norbert, 210 F.2d 615 (9th redemption charge incurred upon withdrawal from the Cir. 1954); see also Schroeter v. Bartlett Syndicate Account. An investor-customer may terminate his Bldg. Corp., 8 Cal. 2d 12, 63 F.2d 824, 825, Eiling- participation in whole or in part on the basis of the wood v. Wolf's Head Refining Co., 38 A.2d 743, 27 net asset value of the units of participation being re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1731 deemed. The net asset value of each unit of participa­ The Account has been approved by the Comptroller, tion is determined as of the close of business of each even though it does not essentially comply with all of a number of specified valuation dates by dividing provisions of Regulation 9 as promulgated by him. the net asset value of the Account as of the close of This action indicates that even though the Account business on the valuation date by the number of units as presently structured does not meet every minute of participation then outstanding. detail of the Regulation, any future plans similar to The operation of the Account is supervised by a the one established by the Bank will obtain his Committee of five persons, who act essentially as a approval under 12 C.F.R. § 9.18(c)(5). Therefore, it board of directors of the Account. Initially the mem­ is not necessary for this court to analyze the differ­ bers were appointed by the Bank, but hereafter are to ences between the Account as established by the Bank be elected annually by the participants. Each partici­ and Regulation 9. For the disposition of the issues pant will be entitled to vote at the election of the before this court, the Account will be treated as if it Committee members and his vote will be weighted completely meets the substantive requirements of according to the number of “units of participation” in Regulation 9. 12 C.F.R. § 9. his account. At least 40% of the members of the Before the merits of the issues in this case can be Committee must at all times be persons not affiliated reached, two preliminary procedural matters must be with the Bank, but the majority of the members may noted. The Comptroller interposes the objection that be, and are expected to be, officers in the Bank’s Trust the plaintiffs lack standing to sue, and that there is no and Investment Division. justiciable issue before this court. The Committee is authorized to enter into a man­ These issues—standing and justiciability—are nom­ agement agreement with the Bank. The agreement and inally termed procedural only to differentiate between any amendments thereto must be approved by more the initial hurdles which a plaintiff must overcome in than 50% of the participants at their annual meeting order to obtain a judicial determination of his action and the Comptroller’s approval thereof must also be on the merits, and the actual adjudication of the case obtained. on its substantive issues. This characterization often In accordance with the management agreement, borders on mere semantics, since in order to obtain the Bank serves as investment adviser and custodian the proper perspective and focus upon the essence of for the Account. The Bank, therefore, maintains a these issues, as here, the substantive law upon which continuous investment program consistent with the the plaintiffs premise their action must also be taken commingled Account’s stated investment policy; it into account. will determine what securities are to be purchased and Standing has been, and remains, one of the most sold, and will execute all transactions. The manage­ enigmatic areas of the law. 3 Davis, Administrative ment agreement provides that the Bank will furnish all Law Treatise, § 22.18, at 291-92, n. 3. The courts administrative, custodial and clerical services required have not developed a single formula which can be by the Account and will pay all the organization costs applied to a set of facts to determine whether a plain­ and expenses. Subsequent maintenance fees, the cost tiff has or does not have standing. The ever changing of independent professional services, such as legal, concepts which have been used in this area of the law auditing and accounting services, and the cost of can be readily ascertained by the many cases which preparation and distribution of notices to partici­ have been cited in the briefs of both parties upholding pants and proxy statements are to be borne by the their contentions. Due to the pervasiveness of defini­ commingled Account. The Bank will, however, re­ tion in this area, the court is left with no alternative imburse the Account for the compensation and ex­ but to examine the long list of cases which hold that penses, if any, paid by the Account to the members of a particular plaintiff had standing on one hand, and the Committee who are not affiliated with the Bank; on the other the long list of cases where the plaintiff the other members of the Committee will receive no has been denied his day in court because of the lack separate compensation for their services to the of standing. Account. For these services the Bank receives a fee Standing has been generally expressed by an indica­ equal to '/sth of 1 per cent of the average of the net tion that the alleged aggrieved party has asserted a asset value of the Account taken on each valuation legal right which was his to assert, or has been in­ date during each fiscal quarter, which is approximately jured, or has been threatened with injury. Perkins v. ’/z of 1 per cent on an annual basis. Luken Steel Co., 310 U.S. 113 (1940), cf FCC v. Essentially, the commingled management agency Panders Bros. Radio Station, 309 U.S. 470 (1940), Account as delineated by the Bank’s plan consists of Pierce v. Society of Sisters, 268 U.S. 510 (1925). But two principal members, the first being the membership standing should not be confused with the doctrine of of the Account consisting of the investor-customer, standing to sue which provides that in an action in a and the second being the Bank which occupies a dual federal constitutional court, by a citizen against a position, one as investment adviser to the Account government officer in his official capacity, there is no and the other as general agent to the participants of justiciable controversy unless the citizen shows that the Account. The Bank can also be considered to such conduct invaded or will invade a private sub­ occupy the position of underwriter for the units of stantive legally protected interest. Associated Ind. v. participation which are issued to the investor-customer. Ickes, 134 F. 2d 694 702 (2nd Cir. 1943) vacated as The Committee of the Account occupies a position moot, 320 U.S. 707 (1943), but see Scott v. Macy, equivalent to that occupied by the board of directors 121 U.S. App. D.C. 205, 349 F. 2d 182 (D.C. Cir. of the mutual funds. 1965). The former standing is basically a means by Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1732 FEDERAL RESERVE BULLETIN • OCTOBER 1967 which courts can accept or refuse jurisdiction, and it competition, even if illegally promulgated, does not generally alludes to the capacity of a party to obtain create any legal wrong for which the plaintiffs may judicial review of an administrative action. See U.S. complain. v. Storer Broadcasling Co., 351 U.S. 192, 197 (1956) In support of its contention that the plaintiffs are and Jaffe, Primary Jurisdiction, 11 Harv. L. Rev. 1037 not suffering any legal wrong and thereby lack stand­ (1964). The doctrine of standing to sue is generally ing to challenge the Comptroller’s regulation, the de­ directed towards the capacity of a plaintiff to present fendant relies on a series of cases which contain the his case before a district court ab initio. general principle that mere competitive injury made The question as to whether a plaintiff may obtain possible by governmental action does not confer judicial relief in cases like this has been variously standing on the injured party to restrain governmental phrased, but the many appellations which have been action. Tennessee Power Co. v. TVA, 306 U.S. 118, devised do not detract from the underlying policy 137 (1938), Alabama Power Co. v. Ickes, 302 U.S. objective which permeates each of these cases. This 464, 479 (1937), Perkins v. Lukens Steel Co., 310 policy is well enshrined in Article III, § 2 of the U.S. 113 (1940), Texas State AFL-CIO v. Kennedy, United States Constitution, that is, a “constitutional” 330 F. 2d 217, 218 (D.C. Cir. 1964), Benson v. Scho­ federal court cannot be given power to sit in judg­ field, 336 F. 2d 719 (D.C. Cir. 1965), cert, denied ment and revise administrative action, since there is 352 U.S. 976, Kansas City Power & Light Co. v. Mc­ no justiciable controversy and the opinion thus issued Kay, 225 F. 2d 924 (D.C. Cir. 1955), cert, denied would merely be advisory. See concurring opinion of 350 U.S. 884, 76 S. Ct. 137, 100 L. Ed. 780 (1955). Mr. Justice Frankfurter in Anti-Fascist Committee v. In these cases, the plaintiffs alleged that they were McGrath, 341 U.S. 123, 149, 150 (1951), Muskrat v. suffering economic loss from the government created U.S., 219 U.S. 346, (1911), C&S Airlines v. Water­ competition, but it is significant to note that the com­ man Corp., 333 U.S. 103, 113 (1948), United Public petition created by government action in these cases Workers v. Mitchell, 330 U.S. 75, 89 (1947), Associ­ was specifically authorized and sanctioned by Con­ ated Ind. v. Ickes, supra. gress and was based upon specific statutory grounds. Standing to challenge an administrative action can Moreover, most of the cases cited by the defendant be premised on a statutory provision specifically ap­ in support of his allegation that the plaintiffs lack pended to the statute under which the administrative standing have been assiduously distinguished by sub­ action was promulgated or where the provision for sequent decisions of the Supreme Court, even though review has been made generally applicable by the they have not been expressly overruled. In Chicago v. Administrative Procedure Act, 5 U.S.C. §§ 701-704 Atchison, Topeka & Santa Fe Railway, 357 U.S. 11 (recodified by Pub. Law 89-554, 80 Stat. 378). Since (1958), the Supreme Court gave explicit recognition there is no specific provision for review of the Comp­ to a competitor’s standing to challenge illegal compe­ troller’s regulation within the terms of the enabling tition. That case involved two competitors, one of statute, Title 12, Section 1 et seq., the terms of the whom (Parmelee) had alleged that the other (Trans­ Administrative Procedure Act will apply. Citizens Nat. fer) was operating illegally because it had not com­ Bank of Maplewood v. Saxon, 249 F. Supp. 557 (D.C. plied with certain licensing requirements imposed by Mo. 1965), affirmed 370 F. 2d 381 (8th Cir. 1966). the City of Chicago. Transfer argued that Parmelee See also United Gas Pipe Line Co. v. F.P.C., 181 F. had no standing to object to Transfer’s allegedly ille­ 2d 796 (D.C. Cir. 1950), cert, denied 340 U.S. 827 (1950). gal competition, but this argument was flatly rejected The pertinent section of the Administrative Proce­ by the Court: dure Act specifically provides that: “It is enough, for purposes of standing, that we “Any person suffering legal wrong because of have an actual controversy before us in which Parme­ lee has a direct and substantial personal interest in agency action, or adversely affected or aggrieved by action within the meaning of a relevant statute, is en­ the outcome. Undoubtedly it is adversely affected by Transfer’s operation. Parmelee contends that this titled to judicial review thereof." 5 U.S.C. § 702. operation is prohibited by a valid city ordinance and Under this statutory provision a plaintiff must allege asserts the right to be free from unlawful competi­ that he has suffered a legal wrong or that a legally tion. protected right will be adversely affected or aggrieved * * * * * by the agency’s action in order to obtain standing before this court. The plaintiffs here are alleging that “[Transfer] argues that a party has no right to com­ they are suffering a legal wrong by the allegedly ille­ plain about unlawful competition, citing Alabama gal competition made possible by the Comptroller’s Power Co. v. Ickes, 302 U.S. 464 and Tennessee Elec­ regulation, thereby being adversely affected or ag­ tric Power Co. v. TVA, 306 U.S. 118. We do not re­ grieved. The exact amount of damages which will be gard either of these cases as controlling here. It seems incurred by the plaintiffs is rather difficult to assess to us that Transfer’s argument confuses the merits of in precise figures, but the Comptroller has predicted the controversy with the standing of Parmelee to liti­ that over the next five to ten years, commercial banks gate them. . . . Parmelee’s standing could hardly demight capture as much as two billion dollars of mu­ tual fund business;1 The defendant interposes that the Committee on Interstate and Foreign Commerce, 88 Cong. 2d Sess. p. 26 (1964). See also Comment, Of “ Hearings on H.R. 8499, 9410 before the Com­ Banks and Mutual Funds: The Collective Investment merce and Finance Subcommittee of the House Trust, 20 Sw.L.J. 334 (1966). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1733 pend on whether or not it is eventually held that sion, observed that: Transfer can lawfully operate without a certificate of “In Tennessee Power Co., supra, and in Alabama convenience and necessity.” 357 U.S. 77, at 83-84. Power Co. v. Ickes, 302 U.S. 464, 58 S.Ct. 300, 82 With regard to some later cases holding that com­ L.Ed. 374 (1937), the plaintiffs alleged that they were petitors had standing, see American Trucking Ass’n. suffering economic loss from the government created v. U.S., 364 U.S. 1 (1960), National Motor Freight competition. In both cases the Supreme Court held Ass’n. v. U.S., 371 U.S. 223, rehearing denied 372 that such economic loss alone did not confer stand­ U.S. 246 (1963), affirming 205 F.Supp. 592 ing on the aspiring plaintiffs. It is important to note (D.C.D.C. 1962) only on the merits but not as to the that such competition was authorized by Congress standing issued; Philco Corp. v. FCC, 257 F. 2d 656 and was based upon statutory grounds. (D.C. Cir. 1958), cert, denied 358 U.S. 946, 79 S.Ct. “In the instant case, the competition complained of 350, 3 L.Ed2d 352 (1959), Whitney National Bank is not explicitly authorized by statute, but rather is v. Bank of New Orleans & Trust Co., 323 F. 2d 290 impliedly prohibited by the congressional grant of (D.C. Cir. 1963), rev’d on other grounds, 379 U.S. power. . . .” 260 F. Supp. at 803. 411 (1965). The district judge, in denying the Comptroller’s In two recent cases challenging the authority of the motion to dismiss, further stated: Comptroller to promulgate regulations under other “The Court is of the opinion that the defendant’s sections of the banking statutes, the plaintiffs have attack on the plaintiff’s standing is without merit. been granted standing to challenge the regulations Title 12, U.S.C.A. § 92 has the effect of protecting in­ over the objections of the Comptroller. Since these surance agents from certain competition. Surely, the cases are directly in point they will be discussed at plaintiffs have the right to their day in court to show length. In Baker, Watts & Co. v. Saxon, 261 F.Supp. that the protection afforded them by 12 U.S.C.A. § 92 247 (D.C.D.C. 1966), a number of plaintiffs, engaged has been violated.” 260 F. Supp. at 804. in underwriting and distributing revenue bonds, sought Subsequent to its finding of standing, the District a declaratory judgment that the Comptroller’s regula­ Court ruled on the merits of the issues and granted tions authorizing commercial banks, for the first time, the declaratory judgment and injunction which was to enter the revenue bond business violated the Glass- sought by the plaintiffs. 268 F. Supp. 236 (N.D. Geo. Steagall Act. The Comptroller raised the standing 1967). defense, citing the identical cases as brought forth in Defendant places great reliance in his brief on the his present argument. Judge Holtzoff summarily dis­ recent case of Pennsylvania Railroad Co. v. Dillon, posed of that contention by stating: 335 F. 2d 292 (D.C. Cir. 1964), cert, denied sub "The gravamen of the plaintiffs’ claim for relief is nom, American Hawaiian Steamship Co. v. Dillon, that they are being subjected to competition by illegal 379 U.S. 945 (1964). activities of national banks. While no one may main­ In that case plaintiffs alleged not only that defend­ tain a suit to restrain lawful competition merely be­ ant Dillon had exceeded his statutory authority but cause he is suffering an economic detriment, never­ also that the competitive activity which had been theless, a person has a standing to complain against allowed was in and of itself illegal. The competing illegal competition, or specifically, against competi­ carriers challenged the authority of the Secretary of tion on the part of a person who lacks the legal right the Treasury to enroll certain vessels in the coastwise or power to pursue the competitive activities.” 261 trade, allegedly in violation of the Merchant Marine F. Supp. at 248. Act of 1920, as amended, 46 U.S.C. § 883. That sec­ Judge Holtzoff's opinion focuses not on the impair­ tion prohibited the enrollment and documentation of ment of the plaintiffs’ competitive position by the un­ vessels “jumboized" by the installation of foreignlawfully created competition, but rather on the prem­ made mid-bodies. The Court of Appeals for the Dis­ ise that but for the illegal competition condoned by the trict of Columbia Circuit found that the carriers Comptroller’s regulation, the plaintiffs would not have lacked standing even though they alleged the compe­ any economic detriment to base their complaint. tition was illegal and in violation of the specific provi­ Likewise, in Georgia Association of Independent sion of the statute. The Court pointed out the dichot­ Insurance Agents, Inc. v. Saxon, 260 F.Supp. 802 omy of Section 10(a) of the A.P.A., namely the (N.D. Geo. 1966), the district court denied a motion “legal wrong” aspect and the “adversely affected or to dismiss for lack of standing. In that case the Comp­ aggrieved” aspect, as it related to the issue of stand­ troller had authorized, for the first time, national ing and it concluded that: banks to sell insurance in towns with more than 5000 “Under either leg of Section 10(a), therefore, since people, even though Section 92 of Title 12 of the appellants only complain of government enhanced United States Code permitted banks to act as insur­ competition, they must demonstrate ‘statutory aid to ance agents only in places with a population of 5000 standing’.” 335 F. 2d a 295. or less. Plaintiffs were insurance agents and trade After analyzing the enabling statute the Court con­ organizations representing insurance agents. Plaintiffs cluded that “Congress did not intend to insulate coast­ there alleged that the Comptroller was acting beyond wise carriers from other domestic competition or to his authority to issue the ruling which was in direct give them any legally protected right to be free from violation of 12 U.S.C, § 92 and that, as a result, na­ such competition.” 335 F. 2d at 295. tional banks were able to illegally compete with the A close analysis of the holding in the Pennsylvania plaintiffs. The district court, in reaching its conclu­ Railroad, supra, case does not require a determination Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1734 FEDERAL RESERVE BULLETIN • OCTOBER 1967 of the standing issue adverse to the plaintiffs. In that erty interests but rather the interests of the public. In case the Court of Appeals found that the underlying the instant situation the plaintiffs could be classified purpose of the statute under which the regulation was as private “Attorneys General” based on the premise promulgated was to stimulate and encourage resort to that the public policy dictated by Congress in the domestic shipyards and thus to ensure them sufficient Glass-Steagall Act is not being adhered to by the business so that their facilities would be adequate at agency charged with its enforcement. See Philco Corp. times of national emergencies, 335 F. 2d 292, at 295. v. FCC, 103 U.S. App. D.C. 278, 257 F. 2d 656 The statutes, under which the regulation in issue was (1958), cert, denied 358 U.S. 946, 76 S.Ct. 350, 3 promulgated, were enacted to establish a clear Con­ L.Ed. 352 (1959), where the competitive interest of a gressional policy which sought to separate national manufacturer and not a broadcaster was held suffi­ commercial banking from the securities business.* The cient to satisfy the “person aggrieved” provision of primary intent of Congress was to segregate these the Federal Communications Act. See also Jaffe, functions and to allow separate entities to engage in Standing to Secure Judicial Review: Public Actions these business areas. This clarity of purpose is gar­ and Private Actions, 74 Harv. L.Rev. 1265 (1961), nered not only from the Congressional hearings re­ 75 Harv. L.Rev. 255 (1961), and Davis, 3 Adminis­ ports of the Glass-Steagall Act, but also from the trative Law Treatise §§ 22.04, 22.05, 22.11 (1958), exactitude with which Congress has delineated the (Supp. 1965). area of common interest in this financial structure? Finally, a denial of standing, as urged by the de­ This strong general policy against the invasion of fendant, would leave the plaintiffs and all others either field of endeavor by either entity is sufficient similarly situated without a right to seek redress to postulate an interest upon which standing to chal­ against capricious, arbitrary and unwarranted Regu­ lenge the regulation may be premised, cf. American lations issued by the Comptroller, however flagrant Trucking Ass'n. v. U.S. 364 U.S. 1 (I960). and contrary to the intent of Congress. This court, Therefore, by implication, the plaintiffs here have therefore, holds that the plaintiffs have standing to a right to complain of the competition which is being challenge the Comptroller’s Regulation 9. condoned under the Regulation. This competition is The Comptroller also asserts that there is no jus­ illegal in the sense that Congress has indicated its ticiable issue or controversy present in this case. This policy of separating the two financial institutions and assertion is bifurcated on two grounds. The first is this Regulation allows in an indirect manner a joinder apparently premised upon the theory that the Comp­ of these interests. The plaintiffs were the recipients by troller’s regulation permitting national commercial implication of Congressional protection. banks to establish the commingled Account does not Even if this invasion would not in fact cause a pal­ regulate nor does it impose any obligation or duty pable injury 0 to be inflicted upon the plaintiffs which upon the plaintiffs. The standards of justiciability are could be termed to be a legal wrong under the first not limited to those situations in which the plaintiffs leg of Section 10(a) of the A.P.A., now 5 U.S.C. are directly regulated by the defendant government § 702, the plaintiffs could have standing to represent official. Indeed, in none of the branch bank cases in the public interest as held in Sanders Bros. Radio Sta­ which the plaintiff was a state bank did the challenged tion v. F.C.C., 309 U.S. 470 (1940), Scripps-Howard regulations impose a duty upon or regulate the plain­ Radio, Inc. v. F.P.C., 316 U.S. 4 (1942), and F.C.C. tiffs in any manner, e.g. First Hardin National Bank v. N.B.C. (K.O.A.), 319 U.S. 239, 63 S.Ct. 1035, 87 v. Fort Knox National Bank, 361 F. 2d 276 (6th Cir. L.Ed. 1374 (1943). See the application of this doc­ 1966), First National Bank of Smithfield v. Saxon, trine by Judge Frank in Associated Industries v. Ickes, 352 F. 2d 267 (4th Cir. 1965), Union Savings Bank 134 F. 2d 694 (2nd Cir. 1943), vacated as moot 320 of Patchogue v. Saxon, 118 U.S. App. D.C. 296, 335 U.S. 707 (1943). F. 2d 718 (D.C. Cir. 1964), Whitney National Bank The practical effect of the doctrine advanced by v. Bank of New Orleans & Trust Co., 323 F. 2d 290 those series of cases grants standing to challenge the (D.C. Cir. 1963), rev'd on other grounds 379 U.S. legality of administrative action to one who is in fact 411 (1965), Commercial Security Bank v. Saxon, 236 adversely affected by administrative action. Standing F. Supp, 457 (D.C. Cir. 1964), affirmed 343 F. 2d in those instances is predicated upon the theory that 758 (D.C. Cir. 1965). However, the justiciability as­ the plaintiffs do not represent their own private prop- sertion made by the Comptroller in each of these cases was decided adversely to the Comptroller. The district court in Baker, Watts & Co. v. Saxon, * Hearings Pursuant to S. Res. 71 Before a Subcom­ mittee of the Senate Committee on Banking and supra, summarily rejected the Comptroller’s conten­ Currency, 71st Cong. 3rd Sess. (1931). tion, stating that: S. Rep. No. 77, 73d Cong. 1st Sess. (1933). ”... a justiciable controversy obviously exists H.R. Rep. No. 742, 74th Cong. 1st Sess. (1935). justifying the court in entertaining an action for a See also 75 Cong. Rec. 9909 (1932) (remarks of declaratory judgment. The plaintiffs claim that the Senator Bulkley). defendant is authorizing national banks to conduct 0 Note specifically amendments made to Section 24, certain activities in violation of the law and that these par. Seventh of Title 12. activities transgress the powers of the banks and that ’ Bantam Book v. Sullivan, 372 U.S. 58, 83 S.Ct. they are injurious to the plaintiffs.” 261 F. Supp. at 631, 9 L.Ed. 2d 584 (1963)—see also the discussion of the “Adversely Affected in Fact” doctrine promul­ 249. gated by Prof. Davis, 3 Davis, Administrative Law The second ground for the lack of justiciability is Treatise § 22.02 (1965 Supp.) premised on the theory that only the Comptroller can Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1735 challenge the acts of a national commercial bank v. Smith, 56 F. 2d 799 (3rd Cir. 1932), and in some when it acts in excess of its powers. However, the trust activities they may be authorized to act by the primary thrust of the plaintiffs’ allegation is directed Comptroller in any capacity in which competing state not at the national bank which is acting under author­ banks are permitted to act. 12 U.S.C. 92a(a). See ity granted by the Comptroller, but rather at the First National Bank in St. Louis v. Missouri, 263 scope of the authority under which the Comptroller U.S. 640 (1923), and Mercantile National Bank v. promulgated the regulation in issue. The district court Langdeati, 371 U.S. 55 (1962), City of Yonkers v. in Georgia Association of Independent Insurance Downey, 309 U.S. 590 (1940), 60 S.Ct. 796, 84 L.Ed. Agents, Inc. v. Saxon, supra, simultaneous with its 964, rehearing denied 60 S.Ct. 1071, 310 U.S. 656, denial of the motion to dismiss for lack of standing, 84 L.Ed. 1420, and Condon v. Downey, 310 U.S. 656, rejected the Comptroller’s assertions on the issue of 60 S.Ct. 1071, 84 L.Ed. 1420, U.S. v. Palmer, 28 F. justiciability. It unequivocally stated that: Supp. 1936 (D.C.N.Y. 1939). “The defendant further contends that . . . the Authority to oversee trust activities of national Comptroller is sole enforcer of the National Banking banks which was vested in the Federal Reserve Board Act. This contention is impliedly repudiated by the of Governors, 12 U.S.C. § 248(k) was repealed in repeated decisions that banks have standing to chal­ 1962 when authority to regulate the fiduciary activi­ lenge an allegedly illegal order . . . and was explicitly ties of national banks was transferred to the Comp­ repudiated in an opinion by the Firth Circuit Court troller. 12 U.S.C. § 92a, 76 Stat. 668, Pub. L. 87­ of Appeals which stated: “The fact that the Comp­ 722. Upon transfer of this authority the Comptroller troller is charged under 12 U.S.C. § 93 with the duty issued Regulation 9 pursuant to which the First Na­ of enforcing the National Banking Act certainly does tional City Bank established the commingled Account. not have the effect of prohibiting actions to enforce In order to determine the validity of Regulation 9, the law by any other party who might have a legiti­ it will be necessary to investigate each section of the mate interest. Jackson v. First National Bank of Val­ relevant statutes and also to determine the intent of dosta, 349 F. 2d 71 (1965) at p. 75.” 260 F. Supp. Congress when it enacted the relevant statutes. In at 804. order to complete the determination of the issues in­ A recent Supreme Court decision inferentially re­ volved, it will also be necessary to determine whether jects the Comptroller’s arguments on the lack of jus­ or not the relevant state statute, here the N.Y. Bank­ ticiability, Abbott Laboratories v. Gardner, 387 U.S. ing Law Section 100, allows local state banks to act in 136 (1967). The Supreme Court reversed and re­ a similar fashion as is presently being allowed by manded to the Court of Appeals for the Third Cir­ Regulation 9. cuit so that the Court of Appeals could consider the This Regulation authorizes national banks to com­ issues on the merits. The Court of Appeals had re­ mingle managing agent accounts, allowing, therefore, versed the district court’s decision without reaching the bank to purchase equity securities for the Account the merits of the case, 352 F. 2d 286 (3rd Cir. 1965). in general and not for any specific participating mem­ The district court had found that “a justiciable con­ ber. The essence of this activity is the purchase and troversy arises where a plaintiff is confronted with sale of securities deriving thereby a benefit for the substantial present or imminent harm ... the very participating members, and fulfilling the stated pur­ presence of a threat of harm makes the regulations pose of the Account. ready for review.” 288 F. Supp. 855, 861 (D.C. Del. The first statutory provision which is encountered 1964). The Court of Appeals reversed on the basis along the logical progression to our conclusion is 12 that no “actual case or controversy” existed as re­ U.S.C. § 92a which delineates the trust powers which quired for justiciability under the Declaratory Judg­ the Comptroller is authorized to grant to the national ment Act. However, the Supreme Court decreed that banks. Section 82a(a) provides: “the impact of the regulations upon the plaintiff is “The Comptroller of the Currency shall be author­ sufficiently direct and immediate so as to render the ized and empowered to grant by special permit to issue appropriate for judicial review at this stage.” national banks applying therefor, when not in con­ 387 U.S. at 152. travention of State or local law, the right to act as Having found that the plaintiffs have standing to trustee, executor, administrator, registrar of stocks seek redress and that they have presented a justiciable and bonds, guardian of estates, assignee, receiver, issue, we are now ready to seek a resolution of the committee of estates of lunatics, or in any other subject matter involved in this litigation. fiduciary capacity in which State banks, trust com­ The principal issue involved in this controversy is panies, or other corporations which come into com­ whether or not the Comptroller has the statutory petition with national banks are permitted to act authority to empower national commercial banks to under the laws of the State in which the national bank create, organize and manage the commingled Ac­ is located.” count. The gist of the activity of managing the Ac­ count consists of the purchase and sale of equity and under 12 U.S.C. § 92a(j) the Comptroller:’ securities, nominally for long-term growth of capital “. . . is authorized and empowered to promulgate and income, for the participating members. National banks have only such powers as are expressly given 7 Section ll(k) of the Federal Reserve Act, as by federal statute or by necessary implication there­ amended, 12 U.S.S. § 248(k) (repealed), empowered, from, 12 U.S.C. § 24, Houston v. Drake, 97 F. 2d in identical terms the Federal Reserve Board to issue 863 (9th Cir. 1938), Baltimore & O. R. Co., et al., regulations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1736 FEDERAL RESERVE BULLETIN • OCTOBER 1967 such regulations as he may deem necessary to enforce tensive where it acts as trustee than where it acts as compliance with the provisions of this section and the agent, and it may incur no liabilities as agent for con­ proper exercise of the powers granted therein.” 76 duct which would render it liable if it were trustee.” Stat. 668, Pub. L. 87-722 § 1. 1 Scott on Trusts, Section 8.1 Bank as Trustee or Pursuant to this statutory authority the Comptroller Agent (2d. ed. 1956). can empower national banks the right to act in a The courts, as well as the recognized authorities in fiduciary capacity and to issue regulations controlling trust law, have distinguished sharply between the re­ this activity. From the statutory language it can be sponsibilities of a true trustee and those of a manag­ concluded that the Comptroller can grant trust powers ing agent, even where the latter is granted complete to the national banks; but the real crux of this issue discretion in acting for his principal. It is, of course, is whether or not the commingled Account can be established that the managing agent occupies a posi­ considered a fiduciary activity as provided by the tion of confidence, in which he must act with reason­ statute. able care and is held to a standard of conduct higher The Comptroller contends that there can be no than that which prevails in the ordinary course of doubt that the Bank's relationship to the participants business in the marketplace. But the courts have in the commingled Account is a fiduciary relation­ stated plainly that this is not the high standard of care ship; however, this general statement, upon close and strict accounting imposed upon a trustee, Stephens analysis, is untenable. The principal-agent relation­ v. Detroit Trust Co., 284 Mich. 149, 278 N.W. 799 ship arises from a contractual agreement between the (1933), Anderson v. Abbott, 61 F. Supp. 888 (W. D. parties. The nature of this relationship gives rise to Ky. 1945), O’Connor v. Burns, Potter & Co., 151 certain duties which are implied by the law, namely, Neb. 9, 36 N.W. 2d 507 (1949). In both the Stephens a fiduciary duty and a duty of loyalty. The trustee and O’Connor cases the principal brought suit for ac­ and the agent have an equivalent duty of loyalty. The counting against the defendant managing agent on fiduciary duty of the agent is similar to but not the the basis that they had breached the high duty of equivalent of the fiduciary duty of a trustee. care imposed upon a trustee. The decisive factor in The many differences as to the characteristics of a both cases was that the relationship which existed be­ principal-agent relationship and a trustee relationship tween the parties had been freely chosen and estab­ are notable especially as they relate to the issue in lished and, having entered into an agency contract, this case. Consent of both principal and agent is a the investor could not assert that the relationship was necessary requirement for the creation of the rela­ in fact a trust.8 tion whereas the beneficiary of a trust need not con­ Contrary to the contentions made by the Comp­ sent. An agent is subject to the control of his princi­ troller, the managing agent relationship is not a true pal, but a trustee is not subject to the control of the fiduciary relationship as it has been defined by the beneficiary. An agent can bind his principal by con­ courts and by the recognized authorities in this field. tract or otherwise, but a trustee has no such power Therefore, it is concluded that the managing agency with regard to his beneficiary. The agency relation­ relationship does not fall within the traditional fidu­ ship is terminable by the direction of the principal or ciary powers as delineated in 12 U.S.C. § 92a(a). by his death without any express provision to that Section 12 U.S.C. 92a(a), however, permits a na­ effect, but this is untrue with respect to a trust unless tional bank to act “in any other fiduciary capacity in the instrument so provides. See Restatement (Second) which state banks, trust companies or other corpora­ of Agency, Section 13, comment a, Section 14B, com­ tions which come into competition with national banks ments e to h, and Section 425, comment a. Note also are permitted to act under the laws of the state in Bogert, Trusts and Trustees, § 15 (2d. ed. 1965) p. which the national bank is located.” This saving pro­ 70 and Restatement of Trusts, 2d § 8, comment i. vision allows national banks to offer the equivalent The Bank and the individual participant of the Ac­ fiduciary services to their customers that a local state count enter into an agency relationship prior to or bank might offer. simultaneous with the participant’s engagement with The Comptroller has authorized the First National the Account. The Bank’s role in this relationship is City Bank, located in New York state, to establish a one of managing agent, nor as trustee for the partici­ commingled Account pursuant to Regulation 9, and pant. A leading authority on the law of trusts has under the competitive provision of 12 U.S.C. § 92a(a) stated: the authorization granted to First National City Bank “The duties and powers in the institution [e.g. a may be legally valid, if the banking laws of New York bank] as agent are determined by the terms of the state allow competing institutions to establish a com­ contract made with the customer; the duties and pow­ mingled Account. ers of the institution as trustee depend not only upon The general powers of state banks in New York the terms of the trust but also upon the principles and state are contained in McKinney's Consl. L. N. Y. rules of the common law and of statutes which are Banking Law § 96 amended, L. 1966, c. 324. These applicable to the trust relation. The liabilities of the general powers have been supplemented by specific institution as agent depend upon whether it has failed statutory provisions which grant state banks the power to use due care in the performance of the duties which it undertakes; its liabilities as a trustee depend upon 8 But see, Saxon and Miller, Common Trust Funds, whether it has committed a breach of trust. Ordinar­ 53 Geo. L. I. 994, 1015, and Main, Common Trust ily the responsibilities of the institution are more ex­ Funds, 83 Banking L.J. 565. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1737 to act in a fiduciary capacity, N. Y. Banking Law sified investment portfolio, in the same manner as the §§ 100, 100-a, 100-b, 100-c, as amended. Each of commingled Account. The mutual fund shares obtains these statutory provisions delineate the authorization for the investor an undivided interest in the fund’s of state banks with a definite degree of specificity, and portfolio, as does a units of participation in the com­ none of the sections noted above allow a commingling mingled Account. Within certain limitations, a par­ of managing agency accounts. The only section which ticipating member of the Account can redeem his could even be deemed to inferentially grant this au­ units of participation in a similar manner as the thority is Section 100-c, which relates to the power of holder of mutual fund shares. A majority of the par­ banks to commingle funds held in a fiduciary capac­ ticipating members elect the members of the Com­ ity, specifically requiring that common trust funds be mittee, who oversee the affairs of the Account in much limited to moneys received and held “as executor, the same manner as mutual fund stockholders elect administrator, guardian, personal or testamentary their board of directors or trustees. The SEC has re­ trustee, donee of a power during minority to manage quired the Account to register as an investment com­ property vested in an infant or committee. . . .” pany under the Investment Company Act of 1940, 15 A search of the New York state case law has failed U.S.C. § 80. The SEC pursuant to its authority under to reveal any relevant judicial interpretation of this 15 U.S.C. 8 80, 3(c), has granted certain exemptions statutory section. However, it has been held that state to the requirements of the Investment Company Act banks are prohibited to exercise any power which was as it relates to board membership;10 nevertheless it not expressly granted, O’Connor v. Bankers Trust Co., has recognized the similarity between the Account and 159 Mise. 920, 289 NYS 252 (Sup. Ct. 1936) affirmed an investment company.11 The Bank and the Commit­ 278 NY 649, 16 NE 2d 302; see also Nassau Bank v. tee have entered into a contractual agreement under Jones, 95 115, 47 Am. Rep. 14, (Ct. of App. 1884). which the Bank performs managing and advising func­ These decisions indicate that New York state courts tions for the Account. This contract is the equivalent follow the federal rule, applicable to national banks, of the contracts which are entered into by the mutual as expressed in Calif. Bank v. Kennedy, 167 U.S. 362, funds and their investment advisers. These contracts 17 S.Ct. 831, 42 L.Ed. 198 (1897), that the exercise are subject to and must be submitted for review by of power not expressly granted to a national bank is the SEC under the provisions of the Investment Com­ prohibited. This restrictive interpretation of the pow­ pany Act. There are some differences between a mu­ ers granted under Section 100-c is further substan­ tual fund and a commingled Account,12 but these are tiated by noting that when the New York legislature not substantially sufficient to create a legal differentia­ has wanted to broaden the categories of accounts held tion between the two investment vehicles. The similari­ and administered by banks which could be invested in ties between these related activities are a sufficient a common trust fund, it has amended Section 100-c basis to draw an analogy from which an equivalency to do so.’ can be premised. It is the conclusion of this court that the com­ The Comptroller attempts to differentiate between mingling of managing agency accounts is not author­ the mutual fund investment vehicle and the com­ ized either under the federal statutes or the New York mingled Account by attempting to establish a major banking laws. difference between a mutual fund share and a unit of Even if the managing agency accounts could be participation. This differentiation is premised on the considered bona fide fiduciary activities, and, there­ basis that the unit of participation is not a security as fore, authorized by the present statutes, the com­ such. This is mere tautology and a matter of seman­ mingling of these accounts would still be illegal under tics. the provisions of the Glass-Steagall Act. In order to The United States Supreme Court has noted that arrive at this determination it is necessary to make an for the purposes of the Securities Act of 1933 the test exact characterization of the Account which was es­ for a security is whether the scheme involves an in­ tablished. vestment of money in a common enterprise with prof­ As noted in the early section of this decision, a its to come solely from the efforts of others. SEC v. mutual fund continuously issues its own securities as does the commingled Account. A mutual fund invests the proceeds from the sale of its securities in a diver- “ The exemptions which were granted are being challenged in the Court of Appeals for the District of Columbia Circuit, National Association of Securities ° For example, that section was amended to permit Dealers, Inc., v. Security Exchange Commission, a state bank acting as the “donee of a power during Appeal No. 20, 164. minority to manage property vested in the infant” to 11 The similarity between mutual funds and the place the property so managed in a common trust Account have been noted by many authorities in the fund, L. 1958, c. 496 § 1; L. 1965, c. 824 § 5. Note financial community, see Hearings on S. 2704 on also the specific accounting and notice provisions Collective Investment Funds Before the Subcommittee which are contained in Section 100-c. as strictly con­ on Financial Institutions of the Senate Committee on strued by the courts in In re Lincoln Rochester Trust Banking and Currency, 89th Cong., 2d Sess. (1966); Co., 201 Mise. 1008, 111 NYS 2d 45 (1952). See University of Pennsylvanian Law School Conference also New York Banking Board Regulation, 3 on Mutual Funds, 115 U.Pa.L.Rev. 699; and Com­ N.Y.C.R.R. 11.91 which states that a common trust ment, Of Banks and Mutual Funds, 20 Sw.L.I. fund “may be operated only for true fiduciary pur­ 12See Hearings on S. 2704 (1966) supra, at p. 55 poses.” and 56. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1738 FEDERAL RESERVE BULLETIN • OCTOBER 1967 Howey, Co., 328 U.S. 293, 301 (1946). See also thorized officers or agents, subject to law, all such S.E.C. v. Variable Annuity Life Ins. Co., 359 U.S. 65 incidental powers as shall be necessary to carry on (1959) and Prudential Insurance Co. of America v. the business of banking; by discounting and negotiat­ S.E.C., 326 F. 2d 383 (3rd Cir. 1964), cert, denied ing promissory notes, drafts, bills of exchange, and STI U.S. 953 (1964). Under this all encompassing other evidences of debt; by receiving deposits; by definition, in its most comprehensive sense, whenever buying and selling exchange, coin, and bullion; by an investor relinquishes control over his funds and loaning money on personal security; and by obtain­ submits their control to another for the purpose and ing, issuing, and circulating notes according to the hopeful expectation of deriving profits therefrom he is in fact investing his funds in a security. The unit of provisions of this chapter. The business of dealing in participation in the commingled Account is in fact a securities and stock by the association shall be limited security and has been so recognized by the SEC by to purchasing and selling such securities and stock its requirement that the Bank register the units of without recourse, solely upon the order, and for the participation under the Securities Act of 1933. account of, customers, and in no case for its own ac­ The Comptroller argues, however, that the defini­ count, and the association shall not underwrite any tion of “securities” for the purpose of the Securities issue of securities of stock: Provided, That the asso­ Act of 1933 is not applicable to define “securities” as ciation may purchase for its own account investment the term is used in the Glass-Steagall Act. He asserts securities under such limitations and restrictions as that this definition as judicially and administratively the Comptroller of the Currency may by regulation derived has no relevance to the meaning of the vari­ prescribe. . . .” ous provisions of the national banking laws. He bases The power of national banks to deal in securities this assertion on the allegedly different purposes which has had a motley history, both legislatively and judi­ the laws have, namely that the securities laws were cially. In 1823 the Supreme Court held that a prohibi­ enacted to protect the interests of investors while the tion against a national bank’s trading and dealing in banking laws were enacted to protect the country’s stocks was nothing more than a prohibition against credit and currency and the solvency of the national engaging in the ordinary business of buying and sell­ banks. This differentiation fails to focus upon the pri­ ing stocks for a profit and it did not include purchases mary essence of the complete regulatory scheme resulting from ordinary banking transactions. Fleckwhich the Congress enacted to mitigate the problems ner v. Bank of the United States, 8 Wheat. 351, 21 that the country faced in the 1930s. Congress, after U.S. 351 (1823). In First National Bank v. Nat. Ex­ extensive investigation, realized that the financial com­ change Bank, 92 U.S. 122 (1875), the Supreme Court munity needed stabilization in order to overcome the stated that “Dealing in stocks is not expressly prohib­ debacle which arose in 1929 and to prevent any fur­ ited; but such a prohibition is implied from the failure ther recurrences. It would be inconsistent to conclude to grant the power.” 92 U.S. at 128. The Court in the that Congress did not intend to obtain the equivalent First National Bank case was interpreting, Rev. Stat. meaning for the term “securities” as used in the Secu­ § 5136, par. 7, 15; 15 Stat. 101 § 8, the forerunner of rities Act of 1933 when it used the term in the Glass- 12 U.S.C. § 24, par. 7 which delineated the powers of Steagall Act which was enacted by the same Con­ the national banks. gress.13 The limitation on the national bank’s power in By finding that the Account is an equivalent invest­ security dealings was reiterated in subsequent decisions ment vehicle to a mutual fund and that the units of of the Supreme Court. Concord First National v. participation are in fact securities, it is, therefore, nec­ Hawkins, 174 U.S. 371 (1898), California Bank v. essary to determine whether or not the Bank is barred Kennedy, 167 U.S. 362 (1897), McCormick v. Mar­ ket National Bank, 165 U.S. 538 (1896); see also from these activities by the provisions of the Glass- Birdsell Mfg. Co. v. Anderson, 20 F. Supp. 571 Steagall Act, Sections 16, 20, 21 and 32, codified in (W.D. Ky 1937) affirmed 104 F. 2d 340 (6th Cir. 12 U.S.C. §5 24, 377, 378 and 78 respectively. 1939), and Michelsen v. Penney, 135 F. 2d 409, 424 The first relevant section is 12 U.S.C. § 24 dealing (2nd Cir. 1943). with the explicit powers granted to the national banks This implied limitation caused the national banks by the Congress. For our analysis only paragraph to establish security affiliates, organized under state Seventh is pertinent. It states: law, to profit from underwriting and dealing in stocks “To exercise by its board of directors or duly auand other securities. In 1927 Congress passed the McFadden Act which added to the list of banking 13 The Federal Reserve Board has repeatedly ruled powers in paragraph Seventh of Section 5136 of the that participation or shares in mutual funds are Revised Statutes the following proviso: securities for purposes of the Glass-Steagall Act, and “Provided, that the business of buying and selling it has similarly characterized the units of participa­ investment securities shall hereafter be limited to tion in the bank sponsored commingled managing buying and selling without recourse marketable obli­ agency account, Federal Reserve Board Legal Memor­ gations evidencing indebtedness of any person, co­ andum, “Legal Considerations Under Section 32 of partnership, association, or corporation, in the form the Banking Act of 1933 in Connection With the Proposed Commingled Investment Account of First of bonds, notes and/or debentures, commonly known National City Bank of New York” (Dec. 15, 1965) as investment securities, under such further definition reprinted in Hearings on S. 2704 (1966) at 581-588. of the term ‘investment securities’ as may by regula- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1739 tion be prescribed by the Comptroller of the Cur­ Reserve System, in its discretion, and, when so as­ rency. . . . [Act of February 25, 1927 (McFadden sessed, may be collected by the Federal reserve bank Act), Section 2(b), 44 Stat. 12261” by suit or otherwise. This proviso was intended to be a confirmation and “If any such violation shall continue for six calen­ a regulation of the investment security business which dar months after the member bank shall have been was being conducted by the banks through their secu­ warned by the Board of Governors of the Federal rity affiliates. H.R. Rep. No. 83, 69th Cong. 1st Sess. Reserve System to discontinue the same, (a) in the (1926). By the provisions of this Act, the national case of a national bank, all the rights, privileges, and banks were authorized by statute to engage in the franchises granted to it under the National Bank Act, business of underwriting and dealing in investment may be forfeited in the manner prescribed in sections securities. 141, 222-225, 281-283, 285, 286, 501a, and 502 of The storms looming on the horizon were not with­ this title, or, (b) in the case of a State member bank, in the contemplation of very many people in 1927. It all of its rights and privileges of membership in the was not until 1931 when the Congress, graced with Federal Reserve System may be forfeited in the man­ hindsight, sought the primary causes of the debacle ner prescribed in sections 321-329 and 330-338 of this which enveloped the country and had its repercussions title.” throughout the world. The Congressional inquiry gen­ Section 21 of the Glass-Steagall Act, now 12 U.S.C. erated various statutes in an attempt to avoid a repe­ S 378, provides: tition of the debacle which had transpired. Among “(a) After the expiration of one year after June these statutes were the Glass-Steagall Act and the 16, 1933, it shall be unlawful— Securities Act of 1933. “(1) For any person, firm, corporation, association, The Glass-Steagall Act in particular redefined the business trust, or other similar organization, engaged powers of the national banks and imposed severe lim­ in the business of issuing, underwriting, selling, or itations on their activity in the investment security distributing, at wholesale or retail, or through syndi­ business by amending 12 U.S.C. § 24, P. 7, and add­ cate participation, stocks, bonds, debentures, notes, ing 12 U.S.C. §§ 78, 377 and 378 Section 24, para­ or other securities, to engage at the same time to any graph Seventh, has been noted above. The other rele­ extent whatever in the business of receiving deposits vant sections are noted below. Section 32 of the subject to check or to repayment upon presentation Glass-Steagall Act, now 12 U.S.C. § 78, provides: of a passbook, certificate of deposit, or other evidence “No officer, director, or employee of any corpora­ of debt, or upon request of the depositor: Provided, tion or unincorporated association, no partner or em­ That the provisions of this paragraph shall not pro­ ployee of any partnership, and no individual, primar­ hibit national banks or State banks or trust companies ily engaged in the issue, flotation, underwriting, public (whether or not members of the Federal Reserve sale, or distribution, at wholesale or retail, or through System) or other financial institutions or private syndicate participation, of stocks, bonds, or other sim­ bankers from dealing in, underwriting, purchasing, ilar securities, shall serve the same time as an officer, and selling investment securities to the extent per­ director, or employee of any member bank except in mitted to national banking associations by the provi­ limited classes of cases in which the Board of Gover­ sions of section 24 of this title: Provided further, nors of the Federal Reserve System may allow such That nothing in this paragraph shall be construed service by general regulations when in the judgment as affecting in any way such right as any bank, bank­ of the said Board it would not unduly influence the ing association, savings bank, trust company, or other investment policies of such member bank or the ad­ banking institution, may otherwise possess to sell, vice it gives its customers regarding investments.” without recourse or agreement to repurchase, obliga­ Section 20 of the Glass-Steagall Act, now 12 U.S.C. tions evidencing loans on real estate; 8 377, provides: “After one year from June 16, 1933, no member “(b) Whoever shall willfully violate any of the bank shall be affiliated in any manner described in provisions of this section shall upon conviction be subsection (b) of section 221a of this title with any fined not more than $5,000 or imprisoned not more corporation, association, business trust, or other simi­ than five years, or both, and any officer, director, lar organization engaged principally in the issue, employee, or agent of any person, firm, corporation, flotation underwriting, public sale, or distribution at association, business trust, or other similar organiza­ wholesale or retail or through syndicated participa­ tion who knowingly participates in any such violation tion of stocks, bonds, debentures, notes, or other se­ shall be punished by a like fine or imprisonment or curities; Provided, That nothing in this paragraph both.” shall apply to any such organization which shall have The obvious purpose of these legislative enactments been placed in formal liquidation and which shall was to divorce the banking business from the security transact no business except such as may be incidental investing business. Congress was so emphatic in prom­ to the liquidation of its affairs. ulgating this divorce, that it included a criminal pro­ “For every violation of this section the member vision to assure the efficacy and continuity of the bank involved shall be subject to a penalty not ex­ separation; see 12 U.S.C. § 378(b), supra, and in some ceeding $1,000 per day for each day during which instances it imposed money penalties and forfeitures; such violation continues. Such penalty may be as­ see 12 U.S.C. § 377, supra. The many pages of legis­ sessed by the Board of Governors of the Federal lative hearings reports which preceded the final enact- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1740 FEDERAL RESERVE BULLETIN • OCTOBER 1967 merit of the Glass-Steagall Act contain and outline The Senate Subcommittee Report also outlined the the potential dangers which the involvement of com­ organization and functions of the security affiliates. mercial banking in the investment security business Among one of these functions was the operation of created. investment trusts which bought and sold securities These potential dangers were noted by the Comp­ purely for investment or speculative purposes, Hear­ troller of the Currency in his report of 1920, ex­ ings, S. Res. 71, p. 1057. These investment trusts cerpts of which were cited by the Subcommittee of were the equivalent of our present day investment the Senate conducting the investigation: companies.11 “Some ‘securities companies’ operating in close con­ Another drawback which the Subcommittee Report nection with, and often officered by the same men recognized was that “in the case of a trust company who manage the national banks with which they are or a bank with a trust department, the possession of allied, have become instruments of speculation and a security affiliate may adversely affect the independ­ headquarters for promotions of all kinds of financial ence with which fiduciary activities are exercised.” schemes. Many of the flotations promoted by the Hearings, S. Res. 71, p. 1064. ‘securities corporations’ which are operated as ad­ There can be little doubt as to what Congress in­ juncts to national banks have proven disastrous to tended to do by the enactment of the Glass-Steagall their subscribers, and have in some instances reflected provisions outlined above. Section 16, 12 U.S.C. § 24, seriously not only upon the credit and the standing par. 7 prohibits national banks from not only under­ of the ‘securities companies’ by which they are spon­ writing securities directly but also limits the capacity sored, but also in some cases have damaged the credit of the national banks in the purchase and sale of and reputation of national banks with which the ‘se­ securities. Awotin v. Atlas Exchange Bank, 295 U.S. curities companies’ are allied. 209 (1935); cf. U.S. v. Philadelphia National Bank, “It has been established clearly by decisions of the 374 U.S. 231, 329 (1963), First Natl. Bank v. United States Supreme Court that a national bank Missouri, 263 U.S. 640 (1923), Genessee Trustee can not, except as authorized by the Federal reserve Corp. v. Smith, 102 F. 2d 125, 127 (6th Cir. 1939), act, hold the stock of other national banks or the Guaranty Trust Co. v. U.S., 44 F. Supp. 417 (E.D. stock of other corporations; but these adjunct or Wash. 1942), affirmed 139 F. 2d 69 (9th Cir. 1943), auxiliary companies whose stockholders are identical U.S. v. Palmer, 28 F. Supp. 936 (S.D.N.Y. 1939). with the stockholders of the national banks with which Section 20, 12 U.S.C. § 377 effectively provides that they are connected by various ties and devices fre­ national banks may not be affiliated with an entity quently deal actively in stocks, and they also some­ which is engaged principally in the business of pur­ times acquire the ownership or control of other banks, chasing, selling, or underwriting securities. Section 21, National and State, through their purchases. 12 U.S.C. § 378 specifically provides that it is un­ “In times of rising prices and active speculation lawful for any entity which is engaged in the busi­ some of these auxiliary corporations have made large ness of purchasing, selling, or underwriting to also be profits through their ventures and syndicate opera­ engaged in the banking business. Section 32, 12 tions, but their losses in other periods have been U.S.C. § 78 prohibits banks and investment organiza­ heavy, and they have become an element of increas­ tions from having interlocking directorates, and com­ ing peril to the banks with which they are associated. mon officials and employees. Through this legislative The business of legitimate banking is entirely sepa­ scheme Congress intended to separate these previously rate and distinct from the kind of business conducted integrated activities, and it made its intent explicitly by many of the ‘securities corporations’, and it would clear. Merchants National Bank v. Commissioner of be difficult, if not impossible, for the same set of offi­ Internal Revenue, 199 F. 2d 657 (5th Cir. 1952), cers to conduct safely, soundly, and successfully the Commissioner of Internal Revenue v. Merchants Nat. conservative business of the national bank and at the Bldg. Co., 131 F. 2d 741 (5th Cir. 1942), cf. Para­ same time direct and manage the speculative ventures mount Pictures v. Langer, 23 F. Supp. 890, 902 (D. and promotions of the ancillary institutions. These N.D. 1938), reversed as moot 306 U.S. 619 (1938), varying institutions demand a different kind of ability Morgan Stanley Co. v. S.E.C., 126 F. 2d 325, 329 and experience on the part of those who manage (2nd Cir. 1942). them, and the two types of business when combined The Supreme Court has stated with specific rela­ with one management are likely to be operated to the tion to Section 32, 12 U.S.C. § 78, that “It [Section advantage of neither. 32] is a preventive or prophylactic measure. The fact >|t $ * v SU that respondents have been scrupulous in their rela­ “These ancillary companies are being used with in­ tionship to the bank is therefore immaterial,” Board creasing frequency for promotion of speculation and of Governors v. Agnew, 329 U.S. 441, 449 (1946), for dealing in bonds and stocks, often those of new see also U.S. v. Brown, 381 U.S. 437, 454 (1965). and unseasoned issues, and which are attended with This “prophylactic” aspect of Section 32 is also in­ improper hazard risk, and as a means of enabling herent in Sections 20 and 21. This is effective legislabanks to do, indirectly through their instrumentality, things which they can neither safely nor lawfully do directly.” [See Hearings Pursuant to S. Res. 71 Be­ fore a Subcommittee of the Senate Committee on 14 S.E.C. Report on the Public Policy Implications Banking and Currency, 71st Cong. 3d Sess. pp. 1067­ of Investment Company Growth, H.R. Rep. No. 2337, 1068 (1931)] ' ' 89th Cong. 2nd Sess. p. 33, Fn. 3 (1966). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1741 tion against temptation, National Maritime Union of dangers with which the integration of these financial America v. Herzog, 78 F. Supp. 146, 171 (D.C.D.C. activities was previously fraught are not present in the 1948) affirmed 334 U.S. 354 (1948), and it should instant relationship, since the Bank only receives a set not be derogated except by the Congress. fee for managing the Account and does not obtain The Comptroller contends that the Account has any remuneration from issuing or underwriting the been passed upon and approved by the Federal Re­ units of participation. This limitation in probable serve Board of Governors as far as its establishment expected remuneration to the Bank may mitigate the would be contrary to the provisions of Section 32, 12 possible aggressive use of the Account by the Bank, U.S.C. § 78.1C In order to support its conclusion the but this does not override the clear and unequivocal Board promulgated a “single entity” theory, that is, Congressional mandate that national banks be di­ that the Bank and the Account would constitute a vorced from investment organizations.17 single entity for the purposes of Section 32, since the It is a legislative process which determines the Account would be regarded as nothing more than an newly evolving circumstances which require a change arm or department of the Bank. This proposition in the statutes. The courts can only enforce and in­ seems to be based more on nuances of language than terpret the legislative enactments. The statutes pres­ on the factual ascertainment of the relationship of the ently in force do not allow a national bank to estab­ Account with the Bank. The Account is to be gov­ lish, operate, or be affiliated with an investment fund. erned by an independent board of directors, the Com­ In view of the statements and conclusions made mittee, with full policy making authority. The Com­ above, this court holds that the provisions of Regula­ mittee is elected by a majority of the units of par­ tion 9 which allow commingling of managing agency ticipation in the Account and is responsible only to accounts do not comply with the statutory provision the investor-participants in the Account and not to of the Glass-Steagall Act and are, therefore, illegal. the Bank. The Bank serves as investment adviser to The promulgation of these specific provisions allow­ the Account and also provides administrative serv­ ing a commingling of managing agency accounts is ices. It performs these services pursuant to a contract also beyond the power of the Comptroller under Sec­ which conforms to the requirements of Section 15 of tion 92a(a) of Title 12, and it is ordered to be set the Investment Company Act, 15 U.S.C. § 80a-15. aside. The contract is terminable at any time, by either The summary judgment motion of the defendant is party, with sixty days notice and may be continued denied and motion of plaintiffs is granted. only upon annual approval of the investor-participants Counsel for plaintiffs will submit an Order in ac­ of of a majority of the Committee, including a ma­ cordance with the foregoing. jority of the members of the Committee not affiliated with the Bank. The contract will also terminate auto­ Joseph C. McGarraghy, Judge. matically if assigned by the Bank. When all these fac­ tors are taken into consideration, it is obvious that September 27, 1967. the Bank is contractually affiliated with the Account and cannot, therefore, be considered a department of the bank.1" The prophylactic provisions of Section 32 10 Under the provisions of the Account, the partici­ prevents the Bank from being affiliated with the Ac­ pants or a majority of the independent members of the count. Committee could sever relations with the Bank by Furthermore, since it is the conclusion of this court electing not to renew the contractual management that the Account is in fact an investment fund, the agreement; practically this may never occur; however, complementary provisions of Sections 20 and 21, 12 it is possible under the present structure of the U.S.C. §§ 377 and 378, prohibit the Account from Account. being affiliated with the Bank and the Bank from be­ 17 The possible conflicts of interests between the ing affiliated with the Account. Account and other aspects of the banks activities are still present, notwithstanding the precautions which The Comptroller further contends that the inherent were taken by the Comptroller in delineating the powers of the Account. See Banks and Mutual Funds, ™ Hearings, S. 2704 (1966) p. 580-588, supra. Comment, 20 Sw.L.J. 334, 341, 342. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements STATE BANK STOCKS REGISTERED UNDER Commercial Guaranty Bank of Mobile SECURITIES EXCHANGE ACT Mobile (FDIC) (as of September 15, 1967) Exchange Security Bank The following is a revised list of the 292 State- Birmingham (FDIC) chartered banks that have registered securities pur­ Peoples Bank & Trust Co. suant to section 12(g) of the Securities Exchange Montgomery (FRB) Act of 1934 and are presently subject to the re­ Union Bank & Trust Company porting requirements of the Act. Banks that are Montgomery (FRB) members of the Federal Reserve System and are therefore governed by Federal Reserve Regulation Arizona F (“Securities of Member State Banks”) are desig­ Arizona Bank, The nated “FRB.” Nonmember insured banks, which Phoenix (FDIC) are subject to Part 335 of the regulations of the Bank of Tucson Federal Deposit Insurance Corporation, are desig­ Tucson (FDIC) nated “FDIC.” Banks for which an extension of Central Arizona Bank time to file a registration statement, or temporary Casa Grande (FDIC) exemption from registration, has been granted arc Guaranty Bank, The so identified. The names of banks that were for­ Phoenix (FDIC) merly registered but are no longer required to file Southern Arizona Bank & Trust Company reports with either the Federal Reserve Board or Tucson (FRB) the Federal Deposit Insurance Corporation (for example, merged into another bank, acquired by a Arkansas holding company, or converted into a national Worthern Bank & Trust Company bank) are not included. Little Rock (FRB) The registration statements and reports (annual, California quarterly, and current, as well as proxy statements Bank of Agriculture and Commerce and annual reports to shareholders) may be ex­ Brentwood (FDIC) amined at the Federal Deposit Insurance Corpora­ Bank of Finance tion Building, 550 17th Street, N.W., Washington, Los Angeles (FDIC) D.C., or at any Federal Reserve Bank (in Boston, Bank of Fremont New York, Philadelphia, Cleveland, Richmond, Fremont (FDIC) Atlanta, Chicago, St. Louis, Minneapolis, Kansas Bank of Marin City, Dallas, and San Francisco). Stock ownership San Rafael (FDIC) reports filed by officers, directors, and principal Bank of Redding stockholders pursuant to section 16(a) of the Se­ Redding (FDIC) curities Exchange Act are available for inspection Bank of Sacramento at the Federal Deposit Insurance Corporation Sacramento (FDIC) Building. Copies of any of these documents will be Bank of Tokyo of California furnished upon request and payment of the pre­ San Francisco (FDIC) scribed fees. Bank of Trade of San Francisco Alabama San Francisco (FDIC) Bessemer Bank and Trust Company Centinela Valley Bank Bessemer (FDIC) Inglewood (FDIC) Central Bank and Trust Company Century Bank Birmingham (FDIC) Los Angeles (FDIC) 1742 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1743 California (Continued) Colonial Bank and Trust Company, The Waterbury (FRB) City Bank of San Diego Connecticut Bank and Trust Company, The Inglewood (FDIC) Hartford (FRB) Community Bank of San Jose Fairfield County Trust Company, The San Jose (FDIC) Stamford (FDIC) Continental Bank Merchants Bank and Trust Company, The Beverly Hills (FDIC) Norwalk (FDIC) County Bank of Santa Cruz New Britain Bank and Trust Company Santa Cruz (FRB) New Britain (FDIC) Fidelity Bank Putnam Trust Company of Greenwich, The Beverly Hills (FRB) Greenwich (FDIC) First San Francisco Bank Rocky Hill Bank and Trust Company, The San Francisco (FDIC) Rocky Hill (FDIC) * Golden State Bank Simsbury Bank and Trust Company, The Bell Gardens (FDIC) Simsbury (FDIC) Hibernia Bank, The Union and New Haven Trust Company, The San Francisco (FDIC) New Haven (FRB) Imperial Bank United Bank & Trust Company Los Angeles (FDIC) Hartford (FRB) ' Inland Bank Pomona—due October 28, 1967 (FDIC) Delaware Manufacturers Bank Bank of Delaware Los Angeles (FDIC) Wilmington (FRB) Mid-State Bank Farmers Bank of the State of Delaware Arroyo Grande (FDIC) Dover (FDIC) Mother Lode Bank Sussex Trust Company, The Placerville (FDIC) Laurel (FDIC) Santa Monica Bank Wilmington Trust Company Santa Monica (FDIC) Wilmington (FRB) Stanford Bank, The Palo Alto (FDIC) Florida Sumitomo Bank of California, The Marine Bank and Trust Company San Francisco (FDIC) Tampa(FRB) Union Bank Los Angeles (FRB) Georgia United California Bank Trust Company of Georgia Los Angeles (FRB) Atlanta (FRB) Wells Fargo Bank San Francisco (FRB) Hawaii American Security Bank Colorado Honolulu (FDIC) Central Bank and Trust Company, The Bank of Hawaii Denver (FRB) Honolulu (FDIC) Central Pacific Bank Connecticut Honolulu (FDIC) Charter Oak Bank and Trust Company, The City Bank of Honolulu Hartford (FDIC) ' Honolulu (FDIC) City Trust Company Liberty Bank of Honolulu, The Bridgeport (FRB) Honolulu (FDIC) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1744 FEDERAL RESERVE BULLETIN • OCTOBER 1967 Illinois International City Bank and Trust Company Civic Center Bank and Trust Company New Orleans (FDIC) Chicago (FDIC) Schwegmann Bank and Trust Company Harris Trust and Savings Bank Metairie (FDIC) Chicago (FRB) Maine Northern Trust Company, The Casco Bank & Trust Company Chicago (FRB) Portland (FDIC) Sears Bank and Trust Company Federal Trust Company Chicago (FRB) Waterville (FDIC) United of America Bank Merrill Trust Company, The Chicago (FDIC) Bangor (FRB) Westbrook Trust Company Indiana Westbrook (FDIC) Citizens Bank of Michigan City, Indiana Michigan City (FDIC) Maryland Hoosier State Bank of Indiana Annapolis Banking and Trust Company, The Hammond (FDIC) Annapolis—extension granted until October Indiana Bank and Trust Company of Fort 1967 (FRB) Wayne Carroll County Bank & Trust Company Fort Wayne (FDIC) Westminster (FDIC) Irwin Union Bank and Trust Company Citizens Bank of Maryland Columbus (FRB) Riverdale (FDIC) St. Joseph Valley Bank Equitable Trust Company, The Elkhart (FRB) Baltimore (FDIC) Farmers & Merchants Bank of Hagerstown, Md. Iowa Hagerstown (FDIC) Davenport Bank and Trust Company Liberty Trust Company of Maryland Davenport (FRB) Cumberland (FRB) Montgomery Bank and Trust Company Kentucky Rockville (FDIC) Bank of Lexington, Inc. Suburban Trust Company Lexington (FDIC) Hyattsville (FDIC) Citizens Fidelity Bank & Trust Company Taneytown Bank & Trust Company Louisville (FRB) Taneytown—extension granted until October Louisville Trust Company, The 15, 1967 (FDIC) Louisville (FRB) Union Trust Company of Maryland Baltimore (FRB) Louisiana Waldorf Bank, The American Bank and Trust Company Waldorf (FDIC) Baton Rouge (FDIC) Western Maryland Trust Company American Bank & Trust Company Frederick (FDIC) Opelousas (FDIC) Bank of Louisiana in New Orleans, The Massachusetts New Orleans (FDIC) Arlington Trust Company Bank of New Orleans and Trust Company, The Lawrence—extension granted until September New Orleans (FRB) 30, 1967 (FDIC) * Bank of Terrebonne and Trust Company City Bank and Trust Company Houma (FDIC) Boston (FDIC) Central Savings Bank and Trust Company Dedham Trust Company Monroe (FRB) Dedham (FDIC) Citizens Bank & Trust Company First Bank and Trust Company of Haverhill Thibodaux (FDIC) Haverhill (FDIC) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1745 Massachusetts (Continued) Manufacturers Bank and Trust Company of St. Louis Framingham Trust Company St. Louis (FRB) Framingham (FDIC) Mound City Trust Company Guaranty Bank & Trust Company St. Louis (FDIC) Worcester (FDIC) Southwest Bank of St. Louis Safe Deposit Bank and Trust Company St. Louis (FRB) Springfield (FRB) Tower Grove Bank and Trust Company State Street Bank and Trust Company St. Louis (FRB) Boston (FRB) United States Trust Company Nebraska Boston (FRB) Lincoln Bank South Lincoln (FDIC) Michigan Nevada American Bank and Trust Company Bank of Las Vegas Lansing (FRB) Las Vegas (FRB) Ann Arbor Bank Ann Arbor (FRB) Bank of the Commonwealth New Jersey Detroit (FRB) Bank of Commerce Bank of Dearborn Newark (FRB) Dearborn (FRB) Bank of Passaic and Clifton Citizens Commercial & Savings Bank Clifton (FRB) Flint (FRB) Broadway Bank & Trust Company Detroit Bank and Trust Company, The Paterson (FRB) Detroit (FRB) Burlington County Trust Company Genesee Merchants Bank & Trust Moorestown (FDIC) Company Camden Trust Company Flint (FRB) Camden (FRB) Old Kent Bank and Trust Company Central Jersey Bank and Trust Company, The Grand Rapids (FRB) Freehold (FDIC) ' Pontiac State Bank Clark State Bank and Trust Company Pontiac (FDIC) Clark (FRB) Security Bank and Trust Company Commercial Trust Company of New Jersey Lincoln Park (FRB) Jersey City (FRB) Warren Bank Community Bank of Linden Warren (FRB) Linden (FDIC) County Trust Company Tenafly (FRB) Mississippi Edison Bank, The Bank of Mississippi, The Edison (FDIC) Tupelo (FDIC) Ewing Bank and Trust Company, The Grenada Bank Trenton (FRB) Grenada (FDIC) Fidelity Union Trust Company Peoples Bank Newark (FRB) Starkville (FDIC) First Bank of Colonia Colonia (FRB) First State Bank of Union, The Missouri Union (FDIC) Manchester Bank of St. Louis Franklin State Bank St. Louis (FRB) Somerset (FDIC) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1746 FEDERAL RESERVE BULLETIN • OCTOBER 1967 New Jersey (Continued) Community Bank, The Lynbrook, L.I. (FDIC) Guarantee Bank and Trust Company County Trust Company, The Atlantic City (FDIC) White Plains (FRB) Hudson Trust Company Fidelity Bank of Colonie Union City (FDIC) Latham (FDIC) Middlesex County Bank First Trust Company of Allegany County, The North Brunswick (FDIC) Wellsville (FDIC) Mid State Bank and Trust Company First Trust and Deposit Company East Brunswick (FDIC) Syracuse (FRB) New Brunswick Trust Company Hempstead Bank New Brunswick (FDIC) Hempstead (FRB) New Jersey Bank and Trust Company Kings County Lafayette Trust Company Clifton (FRB) Brooklyn (FDIC) Pascack Valley Bank and Trust Company Long Island Trust Company Hillsdale (FDIC) Garden City (FRB) Peoples Trust Company of Bergen County Manufacturers Hanover Trust Company Hackensack (FRB) New York (FRB) Pineland State Bank Manufacturers and Traders Trust Company Brick Town (FDIC) Buffalo (FRB) Princeton Bank and Trust Company Merchants Bank of New York, The Princeton (FRB) New York (FRB) State Bank of Rahway Morgan Guaranty Trust Company of Rahway (FDIC) New York Summit and Elizabeth Trust Company, The New York (FRB) Summit (FRB) North Fork Bank and Trust Company, The Trust Company of New Jersey, The Mattituck (FRB) Jersey City (FRB) Schenectady Trust Company, The Union County Trust Company Schenectady (FRB) Elizabeth (FRB) State Bank of Albany Albany (FRB) New York State Bank of Long Island Bank of Babylon North New Hyde Park (FDIC) Babylon (FDIC) Tompkins County Trust Company Bank of Buffalo Ithaca (FRB) Buffalo (FDIC) Trade Bank and Trust Company Bank of Commerce New York (FRB) New York (FDIC) United States Trust Company of New York Bank of Jamestown New York (FRB) ' Jamestown (FRB) Bank of New York, The New York (FRB) North Carolina Central State Bank Branch Banking & Trust Company New York (FDIC) Wilson (FDIC) Central Trust Company Rochester, N.Y. Central Carolina Bank & Trust Company Rochester (FRB) Durham (FDIC) ’ Chemical Bank New York Trust Company First-Citizens Bank & Trust Company New York (FRB) ' Smithfield (FDIC) Chemung Canal Trust Company Northwestern Bank, The Elmira (FRB) North Wilkesboro (FDIC) Citizens Central Bank, The Peoples Bank & Trust Company Arcade (FRB) Rocky Mount (FDIC) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1747 North Carolina (Continued) Beaver Trust Company Security Bank and Trust Company Beaver (FRB) Salisbury (FDIC) Brookline Savings & Trust Company Union Trust Company of Shelby Pittsburgh (FDIC) Shelby (FDIC) ' Bryn Mawr Trust Company, The Waccamaw Bank & Trust Company Bryn Mawr (FDIC) Whiteville (FDIC) Bucks County Bank and Trust Company Wachovia Bank and Trust Company Perkasie (FDIC) Winston-Salem (FRB) Commercial Bank & Trust Company Pittsburgh (FDIC) ” Ohio Community Bank and Trust Company Paoli (FRB) ' Bank of Wood County Company, The Continental Bank and Trust Company Bowling Green (FRB) Norristown (FDIC) Barberton State Bank, The Dauphin Deposit Trust Company Barberton (FDIC) Harrisburg (FDIC) Central Trust Company, The. Economy Bank of Ambridge Cincinnati (FRB) Chardon Savings Bank Company, The Ambridge (FRB) Chardon (FRB) Farmers and Merchants Trust Company of Chambersburg City Bank, The Kent (FDIC) Chambersburg (FDIC) Cleveland Trust Company, The Fidelity Bank, The Cleveland (FRB) Philadelphia (FRB) Dollar Savings and Trust Company, The Fidelity Deposit & Discount Bank, The Dunmore (FDIC) Youngstown (FRB) Farmers Savings and Trust Company, The First Pennsylvania Banking and Trust Com­ Mansfield (FRB) pany, The Fifth Third Union Trust Company, The Philadelphia (FRB) Cincinnati (FRB) First Seneca Bank and Trust Company Harter Bank & Trust Company, The Oil City (FDIC) Canton (FRB) Frankford Trust Company Lorain County Savings and Trust Company, The Philadelphia (FDIC) Elyria (FRB) Girard Trust Bank Philadelphia (FRB) Ohio Citizens Trust Company, The Toledo (FRB) * Industrial Valley Bank and Trust Company Richland Trust Company, The Jenkintown (Philadelphia) (FDIC) Mansfield (FRB) Johnstown Bank and Trust Company Sylvania Savings Bank Company, The Johnstown (FDIC) Sylvania (FRB) Keystone Bank Toledo Trust Company, The Lower Burrell (FDIC) Toledo (FRB) Lincoln Bank and Trust Company Union Commerce Bank, The Jefferson Borough (FDIC) Cleveland (FRB) Mid-State Bank and Trust Company Union Savings & Trust Co., The Altoona (FDIC) Warren (FRB) Monroe Security Bank & Trust Company Pennsylvania Stroudsburg (FDIC) American Bank and Trust Co. of Pa. Northern Central Bank and Trust Company Reading (FDIC) Williamsport (FRB) Bank of Hanover and Trust Company Northwest Pennsylvania Bank & Trust Co. Hanover (FDIC) Oil City (FDIC) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1748 FEDERAL RESERVE BULLETIN • OCTOBER 1967 Pennsylvania (Continued) Southern Bank and Trust Company Greenville (FDIC) Pennsylvania Bank and Trust Company, The Spartanburg Bank and Trust Company Titusville (FDIC) Spartanburg (FDIC) Peoples Bank of Glen Rock State Bank & Trust Company Glen Rock—exemption granted until April 1968 (FRB) ' Columbia (Greenwood) (FDIC) Peoples Safe Deposit Bank, St. Clair Tennessee St. Clair (FDIC) Capital City Bank Peoples Trust City Bank Nashville (FDIC) Reading (FDIC) Commerce Union Bank Peoples Union Bank and Trust Company Nashville (FRB) McKeesport (FRB) Volunteer-State Bank Reading Trust Company Knoxville (FDIC) Reading (FDIC) St. Clair Deposit Bank of Pittsburgh Texas Pittsburgh (FRB) Bank of Services & Trusts Security-Peoples Trust Company Dallas (FDIC) Erie (FRB) Downtown Bank South Side Bank & Trust Company Houston (FDIC) Scranton (FDIC) First Pasadena State Bank Susquehanna Valley Bank and Trust Company Pasadena (FDIC) Sunbury (FDIC) Preston State Bank Union Bank and Trust Company of Dallas (FDIC) Eastern Pennsylvania Texas Bank and Trust Company of Dallas Bethlehem (FDIC) Dallas (FRB) ' Union Bank & Trust Co., Erie Eric (FDIC) Utah Valley Trust Company of Palmyra, Pa., The Valley Bank and Trust Company Palmyra (FDIC) Salt Lake City (FDIC) ' York Bank and Trust Company, The York (FDIC) Vermont Chittenden Trust Company Puerto Rico Burlington (FDIC) Banco Credito y Ahorro Ponceno Citizens Savings Bank and Trust Company Ponce (FDIC) St. Johnsbury (FDIC) Banco de Ponce Montpelier Savings Bank and Trust Company Ponce (FDIC) Montpelier (FDIC) Banco Popular de Puerto Rico Vermont Bank and Trust Company, The Hato Rey (FDIC) Brattleboro (FDIC) Rhode Island Virginia Plantations Bank of Rhode Island Citizens Bank and Trust Company of Providence (FDIC) Charlottesville Rhode Island Hospital Trust Company Charlottesville (FDIC) Providence (FRB) Farmers and Merchants Bank of Timberville, South Carolina Inc. Bank of Orangeburg Timberville (FDIC) Orangeburg (FDIC) Mountain Trust Bank Carolina Bank & Trust Company of Charleston, Roanoke (FRB) The Southern Bank and Trust Company Charleston (FDIC) Richmond (FRB) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1749 Washington West Virginia Wheeling Dollar Savings & Trust Company American Commercial Bank Wheeling (FRB) Spokane (FDIC) Wisconsin North West Bank Bank of Madison Seattle (FDIC) Madison (FDIC) Seattle Trust & Savings Bank Citizens Bank of Sheboygan Seattle (FRB) Sheboygan (FRB) DEATH ON BOARD'S STAFF zation for Economic Cooperation and Develop­ Charles A. Yager, a member of the staff of the ment, he had served as the Director of Statistics Board of Governors since 1952, died on September and National Accounts since February 1964. At 20, 1967. Mr. Yager had recently returned to the the time of his death, Mr. Yager was an Associate Board from Paris, France. On loan to the Organi­ Adviser in the Division of International Finance. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication October 16 Industrial production and factory employment utilization, output of industrial equipment has declined in September partly as a result of work fallen off somewhat further since June and total stoppages. The value of retail sales rose slightly business equipment has shown little change. further and prices of industrial products generally Output of steel and some other industrial mate­ showed advances. Bank credit, time deposits, and rials was reduced in September by work stoppages. the money supply showed less increase than earlier As a result of the improved Mid-East supply, the in the quarter. Yields on public and corporate curtailment of domestic crude oil output continued securities generally rose further by mid-October. in the first week of October. INDUSTRIAL PRODUCTION EMPLOYMENT The index of industrial production was 156.3 Employment in nonfarm establishments declined per cent of the 1957-59 average in September, by 115,000 in September as work stoppages con­ influenced by the direct and indirect effects of tributed to a net reduction in manufacturing em­ work stoppages in the auto, copper, and steel trans­ ployment of 180,000. This decline was only par­ portation industries. The September total was 1.5 tially offset in the total by a net rise of 65,000 in points below the downward revised August rate of nonmanufacturing activities. The average factory output. Output of ordnance and other defense workweek continued to change little but was equipment continued to expand in September. about 2 per cent shorter than a year earlier. Em­ Appliances and TV set production showed little ployment gains continued in private service indus­ further change following a sharp recovery earlier tries and were resumed in retail trade, but strikes from work stoppages and inventory liquidation. of teachers in some cities temporarily reduced local Auto assemblies, which reached a seasonally ad­ government employment. The unemployment rate justed annual rate of 8.4 million units in August, rose to 4.1 per cent from 3.8 per cent in August, were curtailed to 6.8 million units in September. reflecting a sharp rise in the number of women Reflecting partly the lowered rate of capacity entering the labor force. DISTRIBUTION The value of retail sales edged up further in September and remained 4 per cent above a year earlier, according to advance Census estimates. The September increase reflected mainly a 2 per cent rise in sales at durable goods stores as a result partly of the earlier introduction of new model autos and at higher prices. The level of retail sales at nondurable goods stores was about unchanged. COMMODITY PRICES There were widespread increases in prices of intermediate products and various consumer items including new autos and appliances in September and in early October. Prices of speculative com­ modities meanwhile generally continued to change little, and lumber and plywood reversed part of F.R. indexes, seasonally adjusted. Latest figures shown are for September. their earlier run-up as supplies improved. Prices 1750 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 1751 of farm products declined somewhat further re­ further. Net free reserves dropped slightly to an flecting mainly decreases in feed grains and hogs. average of about $250 million over the four state­ ment weeks ending September 27, as a small de­ cline in excess reserves exceeded that in borrow­ BANK CREDIT, DEPOSITS, AND RESERVES ings. Commercial bank credit expanded $2.2 billion in September—much less rapidly than over the pre­ SECURITY MARKETS ceding two months but close to the strong average Over the past month yields have risen in all rate of the first half year. In contrast to the large maturity areas of the U.S. Government securities security acquisitions in July and August, banks re­ market. At mid-October, yields were about 4.60 duced slightly their holdings of Treasury issues in per cent on 3-month Treasury bills, 5.50 per cent September and added only modestly to portfolios on some intermediate-term issues, and 5.25 per of other securities. Total loans rose $2 billion over cent on long-term bonds. Recent issues of shortthe month—only slightly below the average July- and intermediate-term Federal Agency obligations August increase—-with business loan growth con­ have been marketed at yields ranging from 5.50 tinuing modest for the second consecutive month. per cent to 5.88 per cent. The money supply showed little further rise in Yields on corporate and municipal bonds have September, resulting in a third-quarter annual rate advanced fairly steadily since mid-September; new of increase of 7.0 per cent, about the same as that issue yields have advanced especially sharply, and over the first half of the year. Time and savings are currently at levels clearly above those reached deposits rose $1.7 billion, about one-third less last year. In heavy trading volume, common stock than the unusually large increase in August. U.S. prices also moved up to all-time highs near the Government deposits continued to rise on balance. end of September, but since then have fluctuated Total and required reserves increased somewhat within a narrow range. INTEREST RATES Bureau of Labor Statistics indexes. Latest figures shown are for August. Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 years or more and for 90-day Treasury bills. Latest figures shown, week ending Oct. 13. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not 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 u n.a. Not available 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.................................................... Sept. 1967 1814-23 Banking and monetary statistics, 1966............ Mar. 1967 456-70 July 1967 123 6-39 Banks and branches, number of, by class and Semiannually State........................................................... Apr. 1967 658-59 Banking offices: Analysis of changes in number of............... Aug. 1967 1438 Flow of funds (assets and liabilities)................ Oct. 1966 1536-46 On, and not on, Federal Reserve Par List, number of............................................... Aug. 1967 1439 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........................... Sept. 1967 1646 List of, Dec. 31, 1966................................. June 1967 1042 Banking offices and deposits of group banks, Stock exchange firms, detailed debit and credit Dec. 31, 1966.............................................. Aug. 1967 1440 balances.................................................. Sept. 1967 1647 1752 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......... 1754 Reserve Bank discount rates; margin requirements; reserve requirements.................... 1759 Bank deposits; open market transactions; Federal Reserve Banks.................................. 1761 Bank debits; currency in circulation .................................................................................... 1764 Money supply and bank reserves; banks and the monetary system................................ 1766 Commercial and mutual savings banks, by classes ............................................................ 1770 Commercial banks .................................................................................................................. 1771 Weekly reporting banks............................................................................................................ 1774 Business loans .......................................................................................................................... 1778 Interest rates .............................................................................................................................. 1779 Security prices; stock market credit...................................................................................... 1780 Open market paper; savings institutions ........................................................................... 1781 Federally sponsored credit agencies...................................................................................... 1783 Federal finance............................................................................................................................ 1784 U.S. Government securities...................................................................................................... 1786 Security issues.............................................................................................................................. 1790 Business finance ..................................................................................................................... 1792 Real estate credit ..................................................................................................................... 1794 Consumer credit ....................................................................................................................... 1798 Industrial production ................................................................................................................ 1802 Business activity; construction................................................................................................. 1806 Employment and earnings ....................................................................................................... 1808 Wholesale and consumer prices.............................................................................................. 1810 National product and income series........................................................................................ 1812 Flow of funds............................................................................................................................. 1814 Guide to tabular presentation................................................................................................. 1752 Index to statistical tables ........................................................................................................ 1853 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). 1753 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1754 BANK RESERVES AND RELATED ITEMS OCTOBER 1967 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other than member bank Member bank Period T u re ry a s­ Cur­ Treas­ reserves, reserves d o a r te U To .S ta . l Go B v r o o i t g , u u h g t s ­ t e h c t u R r c a i e h t g i p a r e e s u s e e r 1 ­ ­ c v D o a a a n n u i d s c d n ­ - e ts s Float 2 t T al o ­ 3 s G to o c ld k s c o t i u a n u r n g t - ­ d­ r c t e c u i i n i o n l r c a n ­ y ­ h c i u n o a r g s l y d h s ­ T u r w e ry i a t s h ­ F. F e R i o g . r n ­ Ba O nk t s her2 c O F o a t . u c h R n ­ e . t r s B W F a n i R t k h . s r C a en n u c d r y ­ 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 IC,985 2,189 592 1,531 292 12,812 12,812 1945—Dec......... 23,708 23.708 381 65224,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16.027 1950—Dec......... 20,345 20,336 9 142 1,11721 ,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 1,633 27,156 21,942 5,064 31,775 772 463 372 247 998 19.535 19,535 1957—Dec......... 23,982 23,615 367 716 1,443 26,186 22,769 5,144 31,932 768 385 345 186 1.063 19.420 19,420 1958—Dec......... 26.312 26,216 96 564 1,496 28,412 20,563 5,230 32,371 691 470 262 337 1,174 18,899 18,899 1959—Dec......... 27,036 26,993 43 911 1,42629,435 19,482 5,311 32,775 396 524 361 348 1,195 18,628 304 18,932 1960—Dec......... 27,248 27,170 78 94 1,66529,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 2,595 19,283 1961—Dec......... 29.098 29.061 37 152 1,921 31,217 16,929 5,587 33,954 422 514 229 244 1,112 17,259 2,859 20,118 1962—Dec......... 30,546 30,474 72 305 2,298 33,218 15,978 5,561 35,281 398 587 222 290 1,048 16,932 3,108 20,040 1963—Dec......... 33,729 33,626 103 360 2,43436,610 15,562 5,583 37,603 389 879 160 206 1,215 17,303 3,443 20,746 1964—Dec......... 37,126 36,895 231 266 2,423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964 3,645 21,609 1965—Dec......... 40,885 40.772 113 490 2,34943,853 13,799 5,565 42,206 808 683 154 231 389 18,747 3,972 22,719 1966—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 2,383 46,864 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 4,001 23,405 Apr......... 45,082 44,942 140 155 1 ,54046,902 13,108 6,530 43,812 1,356 860 125 463 559 19,365 3,997 23,362 May...4..5.,.699 45,481 218 126 1,37447,323 13,108 6,576 44,083 1,392 990 137 450 692 19,263 4,021 23,284 June....... 45,844 45,801 43 147 1,45947,547 13,108 6,602 44,567 1,385 715 128 464 609 19,388 4,130 23,518 July......... 46,807 46,784 23 91 1,58448,590 13,109 6,615 44,997 1,480 1,123 128 482 373 19,730 4,177 23,907 Aug..4..6..,.6..12 46,558 54 89 1,42348,210 13,053 6,665 45,011 1,488 1,036 128 453 212 19,600 4.191 23,791 Sept......... 46,398 46,377 21 90 1,571 48,147p13,007^6,739*45,188^1,494 566 127 472 65 19,980»4,224*>24,204 Week ending— 1966 Sept. 7............. 42,977 42,977 751 1,75445,531 13,258 6,050 42,982 1,063 988 127 410 286 18,981 3,688 22,669 14............. 42,936 42,895 4i 893 1,91445,791 13,258 6,069 43,228 1 ,071 835 125 409 234 19,218 4,013 23,231 21........ 42,525 42,525 782 2,485 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 1,092 1,032 138 401 218 19,056 4,077 23,133 Oct. 5............. 42,999 42,989 10 843 1,82545,722 13,258 6,106 42,878 1,091 693 146 442 88 19,748 3,866 23,614 12............. 42,969 42,969 947 1,88045,891 13,258 6,121 43,228 1,099 680 157 445 92 19,570 3,788 23,358 19............. 42,521 42,521 805 2,155 45,532 13,256 6,145 43,267 1,120 706 148 439 -56 19,309 4,009 23,318 26......... 42,794 42,715 79 533 2,04345,440 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..4..3..,.4..7..4.. 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 4,268 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 2,77747,468 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 1,214 510 143 435 150 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..4..4..,.1..3..3.. 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 1,855 46,811 13.144 6,420 43,568 1,252 686 128 434 588 19,720 4.093 23,813 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 BANK RESERVES AND RELATED ITEMS 1755 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other P d e o a ri r t o e d T U o .S ta . l Go B v r o o i t u g , u t h s g - t e h c t u R a m r c g i h e t e r i p a e e n s u e s t e r s ­ 1 ­ c v D o a a a n n u d is c d n - - e t s s Float 2 tai J s G to o c ld k T s r c o e t r u i u a n e u n r n a r g c t y ­ ­ s y d ­ ­ r c C t e c i u i n o u i n l r c n a r ­ y ­ ­ T h c i u r n o a e r g s l y a d h s s ­ ­ T t u r h w e r a y a i n t s h ­ m F r e F e e .R m i s o g e . r b n r ­ v e B e r a s O n , b k t a h s n e k r 2 c O F o a t . u c h R n ­ e . t r s B W F a R n it k h M s e r m c e r C o s a e b e i n u n n e r d c r v r ­ y e 4 b s an T k o tal Averages of daily figures Week ending— 1967 Mar. 1............. 44,187 43,942 245 167 1,67646,183 13,108 6,433 43,540 I ,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 1,361 46,677 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 1,791 47,024 13,109 6,529 43,894 1,360 795 120 465 506 19,520 4,060 23,580 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 4,158 23,385 May 3............. 45,597 45,295 302 159 1,441 47,369 13,109 6,566 43,799 1,383 1,201 127 461 503 19,570 4,053 23,623 10............. 45,929 45,469 460 88 1,38447,567 13,109 6,567 44,015 1,396 1 ,050 143 463 539 19,636 3,776 23,413 17............. 45,543 45,243 300 148 1,51247,326 13,108 6,579 44,136 1,404 952 121 455 606 19,341 4,045 23,386 24............. 45,530 45,530 75 1,53247,241 13,109 6,568 44,073 1,391 1,068 121 442 841 18,982 4,099 23,081 31 ............. 45,726 45,657 69 127 1,15047,081 13,109 6,592 44,198 1,378 872 158 439 854 18,883 4,176 23,059 June 7............. 45,955 45,869 86 102 1,321 47,478 13,109 6,590 44,438 1 ,380 734 131 459 835 19,200 3,976 23,176 14............. 45,596 45,596 68 1,38047,118 13,108 6,598 44,600 1,380 471 131 450 609 19,183 4,030 23,213 21............. 45,654 45,587 67 1 16 1,70847,552 13,108 6,608 44,598 1,393 520 121 450 525 19,661 4,106 23,767 28............. 45,940 45,924 16 165 1,40847,642 13,108 6,610 44,574 1,378 968 126 490 530 19,293 4,254 23,547 July 5............ 46,809 46,755 54 366 1 ,231 48,543 13,110 6,614 44,856 1,464 1,088 148 508 360 19.841 4,043 23,884 12............. 47,158 47,101 57 74 1 ,70449,097 13,110 6,610 45,256 1 ,479 1 ,073 134 484 470 19,921 4,145 24,066 19............. 46,471 46,471 53 1,84748,455 13,109 6,603 45,085 1,477 1,021 128 484 380 19,592 4,297 23,889 26........... 46,715 46,715 ......... 54 1,63248,479 13,109 6,616 44,864 1,485 1,188 116 468 368 19,716 4,305 24,021 Aug. 2.. 46,833 46,833 119 1,43948,470 13,094 6,632 44,849 1 ,473 1,390 115 464 250 19,655 4,3(9 23,974 9............. 46,931 46,804 127 91 1 ,385 48,536 13,057 6,642 44,985 1,480 920 128 457 226 20,038 3,922 23,960 16............. 46,716 46,604 112 129 1 ,36748,292 13,057 6,656 45,135 1 ,486 t ,007 126 471 198 19,583 4,180 23,763 23............. 46,504 46,504 47 1,61448,238 13,058 6,674 45,020 1 ,497 1 ,021 133 442 257 19,602 4,171 23,773 30............. 46,249 46,249 ......... 46 1,29047,651 13,044 6,693 44,918 1 ,495 1 ,076 121 443 183 19,151 4,324 23,475 Sept. 6............. 46,693 46,600 93 79 1,41048,247 13,008 6,714 45,131 1 ,495 697 133 471 110 19,932 3,993 23,925 13............. 46,207 46,207 70 1,54447,880 13,007 6,726 45,398 1 ,483 202 126 491 103 19,810 4,229 24,039 20............. 46,055 46,055 106 1,75447,971 13,007 6,739 45,223 1,487 362 126 473 24 20,021 *4,286 *24,307 27............. 46,452 46,452 ......... 74 1,53048,193 13,006 6,759 45,044 1,502 927 129 454 37 19,865 *4,345 *24,210 End of month 1967 July. 46,804 46,804 41 67747,600 13,108 6,633 44,866 f,449 1,340 117 476 214 18,877 3,990 22,867 Aug. 46,555 46,555 36 1,70748,363 13,008 6,698 45,071 1,476 1 ,051 144 449 88 19,789 4,812 24,601 Sept................... 46,916 46,916 ......... 74 1,71448,860Pl 3,006*6,769*45,023 *1,502 778 117 491 38 20,686*3,933 *24,619 Wednesday 1967 Aug. 2............. 46,804 46,804 512 1,35948,756 13,059 6,634 44,943 1,485 1,323 127 475 219 19,877 4,518 24,395 9............. 46,804 46,804 261 1,22548,420 13,059 6,642 45,164 1 ,495 917 116 467 221 19,741 4,376 24,117 16............. 46,604 46,604 255 1,50248,438 13,059 6,658 45,162 1 ,507 971 128 465 234 19,689 4,551 24,240 23............. 46,504 46,504 47 1,32047,942 13,059 6,683 45,026 1 ,492 1,136 133 437 221 19,239 4,634 23,873 30............. 46,169 46,169 ......... 60 1,21247,506 13,009 6,704 45,054 1,508 1,328 116 452 108 18,653 4,817 23,470 Sept. 6............. 47,061 46,607 454 139 1,56848,830 13,009 6,717 45,412 1,496 111 164 457 133 20,783 4,241 25,024 13............. 45,885 45,885 38 1,52247,503 13,009 6,730 45,441 1 ,485 276 124 493 11 19,412 4,796 24,208 20............. 46,055 46,055 320 I ,61748,046 13,009 6,739 45,191 1,498 713 125 459 26 19,781 *4,712 *24,493 27............. 46,702 46,702 ......... 171 1,32848,361 13,009 6,760 45,109 1,523 711 159 450 47 20,132*4,822 *24,954 1 U.S. Govt, securities include Federal agency obligations. on Wed and end-of-month dates, see subsequent tables on F.R. Banks. 2 Beginning with 1960 reflects a minor change in concept; see Feb. See also note 2. 1961 Bulletin, p 164. * Part allowed as reserves Dec. 1, 1959-Nov 23, 1960; all allowed 3 Includes industrial loans and acceptances, when held (industrial thereafter. Beginning with Jan. 1963, figures are estimated except for loan program discontinued Aug. 21, 1959). For holdings of acceptances weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1756 BANK RESERVES AND RELATED ITEMS OCTOBER 1967 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t ld al qu R i e re ­ d Excess B F r i o a n a . n R w g t k s . ­ s s F e r r r e v e ­ e e s T h o e t l a d l qu R ir e e ­ d Excess B r F i o a n a . n R w g t k s . ­ s s F e r r r e v e ­ e e s T h o e t l a d l qu R ir e e ­ d Excess B r F i o a n a . n w g R t k s ­ . s s F e r r r e v e ­ e e s 1929—June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 1 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 1,011 13 6 7 1950—Dec. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 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 1960—Dec. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1961—Dec. 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962—Dec. 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 1,042 1,035 7 18 -11 1963—Dec. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 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—'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. 23,405 22,970 435 199 236 4,612 4,608 4 72 -68 1,133 1,122 11 26 -15 Apr. 23,362 23,053 309 134 175 4,644 4,613 31 41 -10 1,131 1,140 -9 11 -20 May 23,284 22,914 370 101 269 4,614 4,583 31 19 12 1,133 1,127 6 5 1 June 23,518 23,098 420 123 297 4,701 4,664 37 30 7 1,150 1,138 12 15 -3 July. 23,907 23,548 359 87 272 4,787 4,749 38 18 20 1,152 1,162 -10 5 -15 Aug. J'23,785 *23,406 *379 89 *290 *4,633 *4,619 *14 8 >’6 *1,153 *1,148 *5 1 *4 Sept............ *24,204*23,839 *365 90 *275 *4,797 *4,747 *50 11 *39 *1,172 *1,169 *3 ...........*3 Week ending— 1966—Sept. 7. .. . 22,669 22.332 337 749 -412 4,249 4,237 12 21 -9 1,098 1,101 -3 61 -64 14.... 22,231 22,727 504 888 -384 4,438 4,349 89 110 -21 1,119 1,103 16 135 -119 21... . 23,751 23,159 592 771 -179 4,528 4,528 159 -159 1,141 1,141 46 -46 28.... 23,133 23,066 67 650 -583 4,578 4,539 39 161 -122 1,124 1,123 1 48 -47 1967—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 19.... 23,580 23,102 478 178 300 4,586 4,584 2 64 -62 1,129 1,134 -5 -5 26.... 23,385 23,139 246 98 148 4,693 4,666 27 ...........27 1,133 1,133 18 -18 May 3.... 23,623 23,218 405 134 271 4,788 4,759 29 39 -10 1,171 1,172 -1 21 -22 10.... 23,413 23,084 329 63 266 4,684 4,620 64 21 43 1,153 1,147 6 6 17.... 23,386 22,982 404 123 281 4,585 4,575 10 36 -26 1,123 1,127 -4 -4 24.... 23,081 22,754 327 50 277 4,555 4,531 24 24 1,108 1.094 14 14 31.... 23,059 22,678 381 102 279 4,551 4,511 40 ..........40 1,126 1,122 4 ....... 4 June 7.... 23,176 22,845 331 77 254 4,592 4,563 29 7 22 1,139 1,134 5 5 14.... 23,213 22,858 355 43 312 4,565 4,551 14 14 1,103 1,101 2 2 21.... 23,767 23,506 261 91 170 4,874 4,865 9 27 -18 1,157 1,159 -2 9 -11 28. ... 23,547 23,116 431 141 290 4,677 4,663 14 14 1,156 1,150 6 2 4 July 5.... 23,884 23,422 462 353 109 4,921 4,801 120 173 -53 1,191 1,185 6 77 -71 12.... 24,066 23,423 643 69 574 4,780 4,719 61 61 1,148 1,143 5 5 19.... 23,889 23,653 236 51 185 4,773 4,742 31 31 1,141 1,138 3 3 26. ... 24,021 23,589 432 54 378 4,735 4,727 8 ........... 8 1,179 1,170 9 ........... 9 Aug. 2.... 23,974 23,679 295 116 179 4,800 4,778 22 28 -6 1,189 1,183 6 2 4 9. ... 23,960 23,589 371 91 280 4,699 4,684 15 1 14 1,177 1,173 4 4 16.. 23,763 23,381 382 129 253 4,593 4,578 15 6 9 1,135 1,134 1 3 -2 23.... 23,773 23,300 473 47 426 4,590 4,577 13 13 1,150 1,140 10 10 30.... 23,475 23,215 260 46 214 4,588 4,565 23 ...........23 1,130 1,129 1 •......... 1 Sept. 6.,.. 23,925 23,593 332 79 253 4,701 4,671 30 21 9 1,172 1,161 11 11 13. ... 24.039 23,653 386 70 316 4,664 4,630 34 34 1,147 1,132 15 15 20.... *24,307 *23,893 *414 106 *308 *4,782 *4,756 *25 21 *4 >’1,171 *1,171 *-l p-1 27.... *24,210*24,005 *205 74 *131 *4,858 *4,839 *18 ..........*.18 *1,202 *1,194 *8 ...........*8 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 BANK RESERVES AND RELATED ITEMS 1757 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow­ Reserves Borrow­ ings at Free ings at Free T h o e t ld al Required Excess B F a . n R k . s reserves T h o e t l a d l Required Excess B F a . n R k . s reserves 1929—June........................... 761 749 12 409 -397 632 610 22 327 -305 1933—June........................... 648 528 120 58 62 441 344 96 126 -30 1939—Dec............................. 3,140 1,953 1,188 1,188 1,568 897 671 3 668 1941—Dec............................. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 1945—Dec............................. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 1947—Dec............................. 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950—Dec............................. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 1956—Dec............................. 8.078 7,983 96 300 -203 5,859 5,371 488 144 344 1957—Dec............................. 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 1958—Dec............................. 7,940 7,883 57 254 -198 5,849 5,419 430 162 268 1959—Dec............................. 7,954 7,912 41 490 -449 6,020 5,569 450 213 237 I960—Dec............................. 7,950 7,851 100 20 80 6,689 6,066 623 40 583 1961—Dec............................. 8,367 8,308 59 39 20 6,931 6,429 502 31 471 1962—Dec............................. 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 1963—Dec............................. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 1964—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—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 1 15 -84 8,614 8,315 299 88 211 Mar............................ 9,366 9,300 66 53 13 8,294 7,940 354 48 306 Apr............................ 9,397 9.382 15 53 -38 8,189 7,918 271 29 242 May........................... 9,319 9,282 37 46 -9 8,219 7,922 297 31 266 June................... 9,381 9,314 67 34 33 8,285 7,983 302 44 258 July............................ 9,564 9,542 22 10 12 8,403 8,095 308 54 254 Aug............................ *9,555 *9,509 *46 32 *14 *8,444 *8,131 *314 48 *266 Sept............... *9,650 *9,622 *28 32 p-4 *8,586 *8,302 *284 47 *237 Week ending—• 1966—Sept. 7...................... 9,054 9,004 50 334 -284 8,268 7,990 278 333 -55 14...................... 9,299 9,200 99 342 -243 8,375 8,076 299 301 -2 21...................... 9,325 9,289 36 293 -257 8,757 8,201 556 273 283 28................ 9,293 9,268 25 196 -171 8,137 8,136 1 245 -244 1967—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..,.2..7..8....... 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...................... 9,448 9,410 38 79 -41 8,417 7,974 443 35 408 26...................... 9,437 9,398 39 50 -11 8,121 7,942 179 30 149 May 3................... 9,395 9,385 10 47 -37 8,270 7,902 368 27 341 10...................... 9,414 9,349 65 13 52 8,162 7,968 194 29 165 17...................... 9,344 9,319 25 57 -32 8,334 7,961 373 30 343 24...................... 9,272 9,220 52 23 29 8,145 7,909 236 27 209 31...................... 9,236 9,189 47 66 -19 8,146 7,856 290 36 254 June 7................... 9,274 9,232 42 19 23 8,171 7,916 255 51 204 14...................... 9,260 9,227 33 8 25 8,285 7,979 306 35 271 21...................... 9,456 9,437 19 35 -16 8,281 8,044 237 20 217 28...................... 9,363 9,331 32 75 -43 8,352 7,973 379 64 315 July 5................ 9,537 9,456 81 28 53 8,235 7,980 255 75 i80 12................... 9,506 9,460 46 11 35 8,632 8,100 532 58 474 19...................... 9,674 9,607 67 2 65 8,302 8,165 137 49 88 26...................... 9,608 9,582 26 11 15 8,499 8,110 389 43 346 Aug. 2................... 9,626 9,598 28 36 -8 8,360 8,120 240 50 190 9........9..,.6..2..3....... 9,579 44 52 -9 8,461 8,152 309 37 272 16...................... 9,559 9,506 53 53 8,476 8,163 313 67 246 23...................... 9,492 9,467 25 3 22 8,540 8,117 423 44 379 30...................... 9,482 9,444 38 38 8,275 8,077 198 46 152 Sept. 6...................... 9,608 9,570 38 17 21 8,443 8,191 252 41 211 13...................... 9,592 9,560 32 19 13 8,636 8,331 305 51 254 20..................... *9,625 »9,616 *9 50 »-41 *8,730 *8,350 *380 35 *345 27..................... *9,667 *9,661 *5 22 *-17 *8,483 *8,311 *171 52 *119 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

1758 MAJOR RESERVE CITY BANKS OCTOBER 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 and Bor­ week ending—• s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N d a n t n e e e d r k r t s a ­ l S d u e r o f p i r c l u it s r r P e e e q s a r e o u v r c g i f v e r . e e n s d t c P ha u s r e ­ s Sales ac 2 T tr - t a o i w o n t a a n s y l ­ s 2 b c o b u P h f a y a u n n s i r k n e e ­ s s g t s o b S e f a l a l n l n i e n k e s g s t d L ea o t l o a e n r s s 3 de r f i a r o n o l w g e m s r ­ s 4 lo N a e n t s trans. Total-—46 banks 1967—Aug. 2............ 38 54 1.206 -1,222 11.3 3,099 1,894 1,448 1,652 446 1,589 90 1,499 9...........40 17 1 ,525 -1,503 14.1 3,122 1,597 1,367 1,755 230 1,817 100 1,717 16............ 40 18 1,343 -1,322 12.6 3,099 1,756 1,489 1,610 267 1,659 145 1,514 23........... 38 802 -763 7.3 2,818 2,017 1,431 1,387 586 1,631 143 1,488 30........... 34 ............ 355 -321 3.1 2,658 2,304 1,583 1,075 720 1,541 127 1,414 Sept. 6....... 58 34 699 -675 6.3 ’•2,946 '2,247 '1,393 '1,553 854 1,770 131 1,640 13. 43 7 1 ,784 -1,747 16.5 3,574 1,790 1 ,423 2,151 367 2,032 70 1,962 20............ 25 56 1,767 -1,798 16.7 3,596 1,829 1,445 2,151 384 1,964 51 1,913 27............ 3 13 1 ,090 -1,100 10.1 3,265 2,176 1,609 1,656 567 1 ,638 61 1 ,578 8 in New York City 1967—Aug. 2........... 19 26 392 -399 9.1 1,255 862 708 546 154 1,052 90 963 9........... 12 486 -474 11.1 1,186 700 615 571 85 1,129 82 1,048 16........... 10 6 508 -505 12.1 1,198 690 608 590 82 1,023 80 943 23........... 14 169 -155 3.7 1,120 951 640 480 311 1,006 78 928 30............ 26 • ........... -19 46 1.1 991 1,011 662 329 349 968 62 907 Sept. 6........... 23 21 282 -280 6.6 1,144 862 545 600 318 1,146 77 1,069 13........... 16 876 -860 20.3 1,360 485 422 938 63 1,234 66 1,168 20........... 18 21 671 -674 15.5 1,355 684 602 753 82 1,071 51 1,020 27............ 13 ............. 70 -58 1.3 1,009 938 676 333 263 837 61 776 38 outside New York City 1967—Aug. 2....... 18 28 813 -823 12.8 1,845 1,032 739 1,105 292 537 537 9...........28 17 1,038 -1,029 16.1 1,936 898 752 1,184 145 688 19 669 16........... 30 13 835 -818 13.0 1,901 1,066 881 1,020 185 636 65 571 23........... 24 633 -609 9.6 1,698 1,065 791 907 274 625 65 560 30........... 8 374 -367 5.8 1,667 1,293 921 745 '371 572 65 507 Sept. 6............ 35 12 417 -395 6.2 '1,802 'l,385 '848 '953 536 625 54 571 13 27 7 908 -888 14.0 2,214 1,306 1,001 1,213 304 797 4 794 20... 7 35 1,095 -1,123 17.5 2,241 1,146 843 1 ,398 302 893 893 27............ -9 13 1 ,019 -1,042 16.1 2,257 1,237 933 1,323 304 802 802 5 in City of Chicago 1967—Aug. 2............ 3 2 90 -89 8.4 499 409 257 242 152 38 38 9............3 84 -81 7.7 421 336 250 171 87 28 28 16............ 1 3 -41 39 3.8 374 415 333 41 82 25 25 23............ 5 -149 154 15.2 297 446 279 18 166 47 47 30............ -241 241 24.0 311 552 307 4 245 26 26 Sept. 6............ 9 -279 289 27.9 287 567 284 3 282 30 30 13............ 8 -228 235 23.4 396 624 396 228 31 31 20........... -3 -195 193 18.4 350 545 339 10 205 75 75 27............ 2 -224 226 21,2 324 548 324 .........2..2..4 36 ............3.6 33 others 1967—Aug. 2............ 15 26 723 -734 13.6 1,346 622 482 864 140 499 499 9...........25 17 954 -948 17.7 1,516 561 503 1,013 58 660 19 641 16............ 30 10 876 -857 16.2 1,526 651 548 979 103 611 65 546 23........... 19 781 -763 14.4 1,401 620 512 889 108 578 65 513 30............ 8 615 -608 11.5 1,356 741 615 741 126 546 65 481 Sept. 6........... 26 12 696 -683 12.7 ’■1,514 '818 ’■564 '950 254 594 54 541 13........... 20 7 1,136 -1,123 21.1 1,818 682 605 1,213 77 766 4 762 20........... 10 35 1,291 -1,316 24.6 1,892 601 504 1,388 97 818 818 27............ -12 13 1,243 -1,268 23,4 1,932 689 609 1,323 80 765 765 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 1 Derived from averages for individual banks for entire week. Figure by Govt, or other issues. for each bank indicates extent to which its weekly average purchases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 DISCOUNT RATES 1759 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 Sept. 30 date rate Sept. 30 date rate Sept. 30 date rate Boston.......................................... 4 Apr. 7, 1967 4/1 414 Apr. 7, 1967 5 5 Apr. 7, 1967 5/2 New York............................... 4 Apr. 7, 1967 414 414 Apr. 7' 1967 5 514 Dec. 6, 1965 5' Philadelphia................................... 4 Apr. 7, 1967 4!4 414 Apr. 7' 1967 5 5'“ Apr, 7, 1967 514 Cleveland............................. 4 Apr. 7, 1967 414 Apr. 7,' 1967 5 514 Apr. 7’ 1967 6 Richmond.................................. 4 Apr. 7, 1967 414 Apr. 7, 1967 5 5 Apr. 7, 1967 514 Atlanta................................ 4 Apr. 10' 1967 4‘/z 414 Apr. IO’ 1967 5 6 Apr. 10, 1967 6*4 Chicago........................................ 4 Apr. 7’ 1967 4‘/2 414 Apr. 7’ 1967 5 5 Apr. 7, 1967 514 St. Louis........................................ 4 Apr. 14' 1967 414 414 Apr. 14^ 1967 5 5 Apr. 14, 1967 5*4 Minneapolis................... 4 Apr. 7, 1967 4*4 414 Apr. 7' 1967 5 5 Apr. 7’ 1967 514 Kansas City.................................. 4 Apr. 7, 1967 414 414 Apr. 7, 1967 5 5 Apr. 7, 1967 514 Dallas....................................... 4 Apr. 7, 1967 414 414 Apr. 7^ 1967 5 5 Apr, 7, 1967 514 San Francisco............................... 4 Apr. 7; 1967 4% 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. In effect Dec. 31, 1941........ 1 -l'/2 1 1955 114-1 */4 U4 1959 214-3 3 ‘ 15........................... 1*4-1 */4 1’4 16..........3.................3 1942 May 2......................... 114 U4 3 -3'4 3'4 1 t Aug. 4........................... 114-214 1’4 June 12....................... 314 Oct, 15............................... t '4-1 1 ~ 5.......................... 1’4-214 2 3'4-4 4 30......................... t '4 t w 12........................... 2 -2*/4 2 ‘ 18..........4.................4 2 -214 2*4 * 13........................... 2'4 2*4 I960 May Lu... A ... p . 1 . r 9 . . . 4 .. 6 2 . . 5 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....t.. ..1..4..-.1.. 1 I Nov. 2 1 3 8 . . . . . . . . 1 . . . . 9 . . 5 . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2 4 1 -2 4 *4 2 2 1 '4 4 1 1 0 4 . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 ' ' 4 4 3 - - '4 4 4 4 3 3 * 1 4 4 1948 ‘ 20. A ... p .. r . . . ... 1 .. 3 .. . . . . . . . . . . . . . . . . . . . . . . . . ........2 2 ..1 1 ..4 4 ..- - .3 3 2 2’ ’ 4 4 Aug. 12........................... 3 3 -314 3 3 Jan. 12......................1. .....-.1.% 1’4 Aug. 24,............... 214-3 3 19............................. 1*4 1'4 ' 31........................... 3 3 Aug. 13............................... 1%-I*4 1'4 1963 “ 23.......................... 1*4 H4 1957 July 17....................3.. ...-..3.14 Aug. 9....................3.. ...-..314 3 ' 26..........3..'.4..............3.(4 “ 23............................ 3*4 314 1950 Nov. 15................ 3 -314 3 1J4-1V4 1’4 Dec. 2............................ 3 3 1964 ~ 25............................. 134 1% Nov. 24........................... 314-4 4 1958 30.........4..................4 Jan. 22....................2..’.4..-..3 3 1953 24........................... 2’4-3 2’4 Jan. 16.....................l..%...-..2. 2 Mar. 7........................... 214-3 2'4 1965 23............................. 2 2 13........................... 2*4-2% Dec. 6....................... 4 -4'4 4*4 21........................... 2'4 13........................... 414 4*4 Apr. 18........................... 1’4-214 1954 May 9........................... 1’4 Feb. 5............................. 1% Aug 15........................... 1’4-2 1’4 1967 15............................. Sept, 12................ 1’4-2 2 Apr, 7........................... 4 -4'4 4 ‘ 23........................... 2 2 Apr. 14........................... 4 4 " 16.......................... 1*4 Oct. 24........................... 2 -2*4 2 May 21............................. l'/2 l*/2 Nov. 7.......................... 214 2ft In effect Sept. 30............. 4 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 I 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 1 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, 2,75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, 1943, pp. 439-42. ' 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

1760 RESERVE REQUIREMENTS OCTOBER 1967 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Requirements through July 13, 1966 Requirements beginning July 14, 1966 Net Time deposits'1 Net demand deposits2 demand deposits2 (all classes of banks) Time deposits . Ot her (all time deposits Effective date1 C b re a e c s n n i e t t k r y r v s a e 3 l R b e c a s i n e ty k rv s e C b o a u n n k t s ry c b l a a n o s k f s e s s ) Effective date1 R b e c a s i n e ty k rv s e C b o a u n n k t s ry d S e a p v o in s g it s s Up to c I e n s s e x o ­ f $5. mil­ lion $5 mil­ lion In effect Dec. 31, 1949........... 22 18 12 5 1966—July 14,21............. 5 16% 5 12 = 4 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................... 314 1954—June 24 16.................. 21 5 Mar. 16................... 3 July 29, Aug. 1........... 20 18 12 1958—Feb. 27, Mar 1............ 1914 1714 1114 In effect Sept. 30, 1967 .... 16% 12 3 3 6 Mar. 20, Apr. 1........... 19 17 u 1814 Apr. 24........................ 18 16% I960—Sept. 1........................ 1714 Present legal Nov. 24........................ 12 ............. requirement: Dec. 1........................ 1614 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 Christmas 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. 1960, 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, 1960, 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. I, 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, 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 2% 3 4 4 4 4 Other time deposits:1 Less than 12 months..... 3 2% 3 314 314 4 4 Multiple-maturity: Other time deposits:1 90 days or more....... 5 5 12 months or more........... 3 2% 3 4 4 5% Less than 90 days..... 4 4 6 months to 12 months... 3 2% 3 314 4 5% (30-89 days) 90 days to 6 months,..... 3 2 214 214 4 5% Single-maturity: Less than 90 days............. 3 1 1 1 1 4 5% $100,000 or more..... 514 514 (30-89 days) Less than $100,000.... 514 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. 1084. 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

OCTOBER 1967 BANK DEPOSITS; OPEN MARKET ACCOUNT 1761 DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks All All Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending July 19, 1967 Four weeks ending Aug. 16, 1967 Gross demand—Total.... 152,230 31,414 6,953 55,606 58,258 Gross demand—Total.... 150,697 30,436 6,865 55,228 58,168 Interbank................. 17,143 5,757 1 ,297 7,939 2,150 Interbank................. 16,510 5,444 1,275 7,700 2,092 U.S. Govt................. 4,695 1,051 271 1,960 1 ,415 U.S. Govt................. 4,733 995 251 1,974 1,514 Other....................... 130,393 24,606 5,385 45,708 54,694 Other........................ 129,454 23,997 5,340 45,556 54,562 Net demand 1.................. 119,404 22,438 5,381 42,855 48,730 Net demand 1................... 119,779 21,924 5,384 43,324 49,148 Time................................ 142,305 19,936 5,729 54,260 62,381 Time............................... 144,387 20,702 5,899 54,732 63,055 Demand balances due Demand balances due from dom. banks..... 8,471 281 238 2,056 5,897 from dom. banks...... 8,166 262 244 1 ,965 5,697 Currency and coin........... 4,185 337 89 1,284 2,477 Currency and coin........... 4,181 338 82 1 ,280 2,482 Balances with F.R. Balances with F.R. Banks........................... 19,662 4,451 1,071 8,237 5,904 Banks........................... 19,749 4,369 1 ,088 8,325 5,968 Total reserves held.......... 23.847 4,788 1,160 9,521 8,381 Total reserves held........... 23,930 4,707 1,170 9,605 8,450 Required................... 23,404 4,732 1,155 9,464 8,055 Required................. 23,561 4,692 1,165 9,569 8,137 Excess............. 443 56 5 57 326 Excess.................... 369 15 5 36 313 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 I year 1-5 years Month Exch., c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m s a h t o u if r r t i s t , y c G p h r a u o s r s e ­ s s G sa r l o e s s s m E a x t o u c r r h i . t y redemp­ shifts tions 1966—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 -6,253 771 405 736 405 15 12 1967—Jan............. 904 656 439 904 656 439 Feb............. 812 305 812 305 -2,457 2,595 1,496 704 1,395 704 80 Apr............. 975 206 415 859 206 415 ID 50 May........... 1,146 107 412 936 107 412 -2,879 107 2,879 June........... 1,681 567 223 1,332 567 223 17 185 55 July............ 1,221 956 94 1,221 956 94 Aug............ 591 440 400 591 440 400 -1,225 1,338 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 r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s G s i o t e i v c es t u , r­ p ( m a n u g e e r r c t n e h t r e s a e ­ ) ­ se r O i n g u e h t t t ­ , a r m c e g h n e p r a e e n u s t e t r e s ­ ­ , change 1 1966—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 Apr.. .. 32 25 1,727 1,529 552 -3 -1 57 606 May., . 62 42 1,438 1,459 606 -10 2 -98 499 June... 109 -55 39 753 992 652 1 21 45 719 July.... 286 370 87 -1 -13 -45 28 Aug.... -113 450 450 -249 -14 -263 1 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

1762 FEDERAL RESERVE BANKS OCTOBER 1967 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1967 1967 1966 Sept. 27 Sept. 20 Sept. 13 Sept. 6 Aug. 30 Sept. Aug. Sept. Assets Gold certificate account............................................. 10,643 10,643 10,644 10,658 10,653 10,653 10,653 10 960 Redemption fund for F.R. notes................................ 1,860 1,861 1,865 1,855 C846 1,857 1,846 1,819 Total gold certificate reserves..................................... 12,503 12,504 12,509 12,513 12,499 12,510 12,499 12,779 Cash,...................................................................... 353 354 344 336 335 357 333 324 Discounts and advances: Member bank borrowings.................................. 171 320 38 139 60 74 36 758 Other....................................................................... 15 Acceptances: Bought outright....................................................... 54 54 58 62 65 52 65 47 Held under repurchase agreements......................... 106 104 Federal agency obligations—Held under repurchase agreements............................................................... 29 U.S. Govt, securities: Bought outright: Bills...................................................................... 13 947 13,375 13 205 13,927 13,541 14,097 13,927 11,090 Certificates—Special............................................ Other.............................................. 4,366 Notes.................................................................. 26,160 26,125 26,125 26 125 26 090 26,198 26 090 21’013 Bonds.................................................................. 6,595 6,555 6,555 6’555 6^538 6,621 6*538 6^438 Total bought outright..................... • 46,702 46,055 45,885 46 607 46,169 46,916 46,555 42,907 Held under repurchase agreements......................... 425 Total U.S. Govt, securities........................................ 46,702 46,055 45,885 47,032 46,169 46,916 46,555 42,907 Total loans and securities.......................................... 47 033 46,429 45 981 47 262 46 294 47 146 46 656 43 727 Cash items in process of collection............................. 7*168 8 438 7*894 6*593 6*569 6’758 6’475 6*325 Bank premises.......................................... ’110 '109 *109 *110 * 110 ’ill ’110 ’104 Other assets: Denominated in foreign currencies.................. 775 774 775 818 816 788 866 742 IMF gold deposited1.............................................. 233 233 233 233 233 233 233 211 AU other.............................................................. 412 385 364 339 301 424 304 391 Total assets.................................................................. 68,587 69,226 68,209 68,204 67,157 68,327 67,476 64,603 Liabilities F.R. notes.............................................................. 39,718 39,800 40,040 40,031 39,683 39,617 39,674 37,618 Deposits: Member bank reserves............................................ 20,132 19,781 19,412 20,783 18,653 20,686 19,789 19,538 U.S. Treasurer—General account........................... 711 713 276 111 1,328 778 1,051 760 Foreign................................................... 159 125 124 164 116 117 144 159 Other: IMF gold deposit1.............................................. 233 233 233 233 233 233 233 211 All other............................................................... 217 226 260 224 219 258 216 219 Total deposits............................................................. 21,452 21,078 20,305 21,515 20,549 22,072 21,433 20,887 Deferred availability cash items.................................. 5,840 6,821 6,372 5,025 5,357 5,044 4,768 4,577 Other liabilities............................................................. 261 247 251 267 239 261 267 246 Total liabilities...................................................... 67,271 67,946 66,968 66,838 65,828 66,994 66,142 63,328 Capital accounts Capital paid in............................................................. 589 587 588 588 588 589 588 565 Surplus...................................................................... 570 570 570 570 570 570 570 551 Other capital accounts............................................... 157 123 83 208 171 174 176 159 Total liabilities and capital accounts......................... 68,587 69,226 68,209 68,204 67,157 68,327 67,476 64,603 Contingent liability on acceptances purchased for foreign correspondents.............................. 214 220 229 243 253 205 252 243 U.S. Govt, securities held in custody for foreign account................................................................... 7,570 7,552 7,403 7,527 7,427 7,558 7,535 7,092 Federal Reserve Notes—Federal Reserve Agents’ Accounts HR. notes outstanding (issued to Bank)................... 42,394 42,442 42,498 42,299 42,215 42,374 42,189 41,449 Collateral held against notes outstanding: Gold certificate account.......................................... 6,727 6,727 6,727 6,730 6,730 6,727 6,730 6,547 Eligible paper ............................. 87 U.S. Govt securities ............................................ 37,081 37,081 37,021 36,671 36,671 37,081 36,671 36,411 Total collateral.................................................... 43,808 43,808 43,748 43,401 43,401 43,808 43,401 43,045 1 See note 1(b) to table at bottom of p. 1828. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FEDERAL RESERVE BANKS 1763 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON SEPTEMBER 30, 1967 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ C ca h g i o ­ Lo S u t i . s M ap i o n l n i e s ­ K C sa a it s n y ­ Dallas F c S r i a a sc n n o ­ Assets Gold certificate account..................... 10,653 728 2,384 574 859 970 609 1,921 393 179 401 355 1,280 Redemption fund for F.R. notes....... 1,857 105 456 96 148 156 103 331 66 32 73 66 225 Total gold certificate reserves............ 12,510 833 2,840 670 1,007 1,126 712 2,252 459 211 474 421 1,505 F.R. notes of other Banks................. 796 91 215 52 53 52 81 50 32 24 33 26 87 Other cash.......................................... 357 18 39 9 49 21 44 64 33 5 17 16 42 Discounts and advances: Secured by U.S. Govt, securities... 74 2 23 1 ♦ 4 16 12 1 10 5 Other..................................... Acceptances: Ronryht outright............................ 52 52 Held under repurchase agreements. 104 104 Federal agency obligations—-Held under repurchase agreements...... U.S. Govt, securities: Bought outright......................... 46,916 2,325 12,273 2,371 3,582 3,348 2,535 7,512 1 ,671 965 1 ,825 1 ,986 6,523 Held under repurchase agreements. Total loans and securities.................. 47,146 2 327 12,452 2,372 3,582 3,348 2,539 7,528 1,683 966 1 ,835 1 ,991 6,523 Cash items in process of collection.. . 8,828 504 1 ,603 483 622 731 833 1 ,542 426 274 567 488 755 Bank premises.................................... 111 3 10 2 5 7 20 19 9 3 15 9 9 Other assets: Denominated in foreign currencies. 788 38 1207 41 71 41 49 114 27 19 34 45 102 IMF gold deposited2..................... 233 233 All other......................................... 424 21 112 21 32 30 22 66 16 8 19 19 58 Total assets........................................ 71,193 3,835 17,711 3,650 5,421 5,356 4,300 11,635 2,685 1 ,510 2,994 3,015 9,081 Liabilities F.R. notes.......................................... 40,413 2,391 9,409 2,300 3,246 3,707 2,265 7,188 1,486 694 1,527 1,343 4,857 Deposits: Member bank reserves.................... 20,686 835 6,103 822 1 ,449 909 1,167 2,889 748 514 879 1,135 3,236 U.S. Treasurer—General account.. 778 33 72 57 66 51 44 142 60 49 79 39 86 Foreign....... ............................... 117 6 328 6 11 6 8 17 4 3 5 7 16 Other: IMF gold deposit 2................ 233 233 All other................................... 258 * 169 2 1 11 I 2 1 * 2 2 67 Total deposits..................................... 22,072 874 6,605 887 I ,527 977 1 ,220 3,050 813 566 965 1,183 3,405 Deferred availability cash items...... 7,114 493 1,279 381 512 581 719 1 ,158 332 214 433 403 609 Other liabilities and accrued dividends 261 13 71 12 19 18 14 ’ 41 9 5 11 12 36 Total liabilities................................... 69,860 3,771 17,364 3,580 5,304 5,283 4,218 11,437 2,640 1,479 2,936 2,941 8,907 Capital accounts Capital paid in................................... 589 28 153 31 53 31 37 86 20 14 26 34 76 Surplus............................................... 570 27 148 30 51 30 35 83 20 14 25 33 74 Other capital accounts....................... 174 9 46 9 13 12 10 29 5 3 7 7 24 Total liabilities and capital accounts.. 71,193 3,835 17,711 3,650 5,421 5,356 4,300 11,635 2,685 1,510 2,994 3,015 9,081 Ratio of gold certificate reserves to F.R. note liability (per cent): Sept. 30, 1967......................... 31.0 34.8 30.2 29.1 31.0 30.4 31.4 31.3 30.9 30.4 31.0 31.3 31.0 Aug. 31,1967......................... 31.0 30.7 32.3 30.0 30.1 31.4 32.1 26.8 33.7 32.2 32.6 30.5 33.4 Sept 30, 1966......................... 33.1 32.9 30.9 32.3 31.9 34.6 34.9 33.3 29.7 31.5 36.3 44.1 33.5 Contingent liability on acceptances purchased for foreign correspond­ ents. ...................................... 205 10 447 11 19 11 13 31 8 5 10 12 28 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)........................... 42,374 2,504 9,912 2,364 3,473 3,844 2,371 7,438 1,578 726 1,597 1,444 5,123 Collateral held against notes out­ standing: Gold certificate account........... 6,727 450 1 ,000 503 600 740 450 1,400 317 127 225 180 735 Eligible paper................................ U.S. Govt, securities...................... 37,081 2,096 9,000 2,000 3,000 3,160 2,050 6,450 1,370 625 1 ,400 1,330 4,600 Total collateral........................... 43,808 2,546 10,000 2,503 3,600 3,900 2,500 7,850 1,687 752 1,625 1,510 5,335 1 After deducting $581 million participations of other F. R. Banks. 3 After deducting $89 million participations of other F. R. Banks. 2 See note 2 to table at bottom of page 1654. 4 After deducting $158 million participations of other F. R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1764 FEDERAL RESERVE BANKS; BANK DEBITS OCTOBER 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 Sept. 27 Sept. 20 Sept. 13 Sept. 6 Aug. 30 Sept. 30 Aug. 31 Sept. 30 Discounts and advances—'Total.................................. 171 320 38 139 60 74 36 773 Within 15 days......................................................... 168 318 36 137 57 71 33 723 16 days to 90 days................................................. 3 2 2 2 3 3 3 50 91 days to 1 year.................................................... Acceptances—-Total..................................................... 160 54 58 62 65 156 65 47 Within 15 days................................................ 117 12 17 20 21 115 21 6 16 days to 90 days............................................. 43 42 41 42 44 41 44 41 91 days to 1 year..................................................... U.S. Government securities—Total............................ 46,702 46,055 45,885 47,061 46,169 46,916 46,555 42,907 Within 15 days1................................................. 1,505 2,019 1,494 2,049 1,665 964 1,001 572 16 days to 90 days................................................... 13,733 12,885 13,188 13,559 13,176 13,962 13,313 6,499 91 days to 1 year..................................................... 15,195 14,938 14,990 15,240 15,167 15,662 16,080 20,548 Over 1 year to 5 years.............................................. 14,865 14,827 14,783 14,783 14,745 14,910 14,745 13,699 Over 5 years to 10 years......................................... 873 866 910 910 900 883 900 1,192 Over 10 years................................................... 531 520 520 520 516 535 516 397 i 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 f e ra lg n i c a s n C d a o n l a l d ar i s an F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i n l t d h d e e s r r s ­ f S r w an is c s s 1966—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 1 216 3 1 3 * 1967—Jan.............................. 397 319 55 2 1 15 1 1 3 Feb.............................. 293 228 55 3 1 1 1 * 3 Mar.,.................... 160 96 55 3 1 1 1 1 * 3 Apr............................ 184 121 55 3 1 1 1 1 2 May............................ 149 115 25 3 1 1 I 2 June............................ 578 399 29 3 1 144 1 1 * 2 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (in billions or dollars) Period S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N ( M t e a . x S Y l c A l . 2 . ) 3 ’s 2 S o M 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’ s L N e .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1966—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 May.......................... 6,'348.2 2,734.5 1'409.2 3,613.7 2’204.5 54.8 115.2 52.0 39.2 33.9 June........................... 6,637.2 2,904 1 1,476.4 3 733 1 2,256.7 56.5 120.0 53.4 40.1 34.4 July............................. 6,688.7 2,857.1 1,560.5 3,831.6 2,271.1 56.8 119.8 55.5 40.7 34.5 Aug............................. 7,067.8 3.185.7 1,575.0 3,882.1 2,307,1 59.0 128.5 56.6 41.1 34.6 Sept............................. 6,799.4 2,952.4 1,513.6 3,847.0 2J33.4 57.4 120.6 55.4 40.8 35.1 i Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston. Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as S MSA’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. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 U.S. CURRENCY 1765 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir ­ ­ 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 3i 044 724 1,433 261 556 24 46 1945.................... 28,515 20,683 1,274 1,039 73 2^313 6^782 9'.201 7^834 2,327 4,220 454 801 7 24 1947.................... 28^868 20^020 1’404 1,048 65 2,110 6'275 9’119 8'850 2'548 5,070 428 782 5 17 1950.................... 27,741 19^305 1'554 1'113 64 2^049 5'998 8'529 8,438 2’422 <043 368 588 4 12 1955 .................... 31,158 22'021 1'927 1'312 75 2,151 6’617 9'940 9,136 2’736 5 J 641 307 438 3 12 1958.................... 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959.................... 32^591 23^264 2'304 1,511 85 2’216 6'672 10,476 9^326 2^803 5’913 261 341 3 5 1960.................... 32^869 23*521 2’427 G533 88 2,’246 6,691 10'536 9’348 2,815 5,954 249 316 3 10 1961.................... 33,918 24’388 2,582 1’588 92 2’313 6'878 10335 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.................... 42356 29 j842 4^027 1’908 127 2,618 7^794 13'369 12^214 3'540 8 J35 245 288 3 4 1966—Aug........... 42,910 30,455 4,317 1,885 138 2,561 7,780 13,77412,456 3,568 8,358 240 283 3 4 Sept.......... 42’802 30’318 4'342 1 '899 138 2,551 7^730 13,’659 12,483 3,562 8392 239 283 3 4 Oct............ 43’113 30'556 4’380 1 '926 137 2,583 7'785 13,745 12,556 3,572 8,455 239 283 3 4 Nov.......... 44’245 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 2,051 137 2,756 8,070 14,201 12,969 3,700 8'735 241 286 3 4 1967—Jan............ 43^363 30'532 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 4'481 1 '933 137 2'612 7^840 13,755 12,827 3'622 8’677 239 282 3 4 Mar.......... 43383 30'753 4,518 1 ,939 137 2’599 7'801 13'759 12'831 3'621 8,683 239 281 3 4 Apr.......... 43’730 30’887 4,’551 1,948 137 2,607 7^817 13’827 12,844 3,'625 8,692 238 282 3 4 May........ 44,443 31,509 4^600 1 ,984 137 2’671 7',979 14J38 12'935 3,660 8,743 238 282 6 6 June......... 44312 31'684 4’641 1 ,879 137 2'635 8,035 14,357 13'029 3,699 8,805 238 280 3 4 July........... 44’866 31,774 4’, 674 1,873 137 2', 625 7^989 14’476 13’094 3,724 8^844 238 281 3 4 Aug........... 45,071 31'884 4'720 1,878 136 2'628 8^001 14^521 13,186 3'749 8,911 238 281 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 Held by Kind of currency T s A t o a u t 1 n a g 9 d l . 6 i 7 o 3 n u 1 g , t ­ A g s a o s g l s i d l a e v i c n e a u r s n r t d i t y Tr c e a a s s h ury B F a F a . n n o R d k r . s A B F a g a n . e n R d n k . t s s Aug. 31 1967 July 31 Au 1 g 96 . 6 31 certificates Agents Gold......................................................................... 13,008 (12,499) 2509 Gold certificates.......................................................... (12,499) 12,498 i Federal Reserve notes............................................ 42,188 100 2,515 39,573 39,410 37,630 Treasury currency—Total............................................ 6,698 (390) 867 332 5,498 5,457 5,280 Standard silver dollars............................................ 485 3 482 482 482 Silver bullion........................................................... 519 387 132 Silver certificates...................................................... (390) 1 ...............2. 386 392 569 Fractional coin...................................................... 5,285 721 325 4,239 4,192 3,835 United States notes.................................................. 323 12 5 305 304 303 In process of retirement 4....................................... 87 87 87 90 Total—Aug. 31, 1967.................................................. 561,895 (12,889) 1,476 12,498 2,849 45,071 July 31, 1967.................................................. 561,832 (13,000) 1,449 12,603 2,914 44,866 Aug. 3 1 1966.................................................. 560,805 (13,375) 1,037 12,787 4,072 42,910 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. 1755. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $156 million reserve against United States notes and $233 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

1766 MONEY SUPPLY; BANK RESERVES OCTOBER 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, Currency Demand ad­ Currency Demand ad­ demand Total component co d m ep p o o s n i e t nt justed 1 Total component co d m ep p o o s n i e t nt justed 1 deposits 1 1964—Dec............................................. 159.3 34.2 125.1 126,6 164.0 35.0 129.1 125.2 5.5 1965—Dec........... . 166.8 36.3 130.5 146.9 172.0 37.1 134.9 145.2 4.6 1966—Sept........................................... 170.5 37.9 132.6 157.4 169.7 37.9 131.8 157.4 4.3 Oct.. 170.1 38.0 132.1 157.6 170.5 38.1 132.4 157. 1 4.8 Nov................................................ 170.1 38.1 132.0 157.4 171.5 38.5 133,0 156.1 3.7 Dec............. , 170.4 38.3 132.1 158.6 175 8 39.1 136.7 156.9 3.4 1967—jan................................................. 170.3 38.5 131.8 160.8 175.3 38.5 136.8 160.7 4.1 Feb................................................. 171.5 38.7 132.8 163.5 170.6 38.3 132.3 164.0 5.0 Mar................................................ 173.1 38.9 134.2 166.1 171.9 38,5 133.4 166.7 4.9 Apr........................................ 172.7 39.1 133.6 168.1 173.6 38.7 134.9 168.8 4.8 May.............................................. 174.5 39.2 135.3 170.0 171.1 38.9 132.2 170.8 6.5 June............................................. 176.2 39.3 136,8 172.4 174.3 39.3 135.1 173.0 3.9 July................................................ 177.9 39.5 138.4 174.6 175,9 39.6 136.2 175.1 5.6 Aug.......................... 179.1 39.6 139.6 177.2 175.8 39.6 136.2 177.7 4.3 Sent ............................................ 179.3 39.8 139.5 178.9 178.4 39.8 138.6 178.9 5.0 Week ending—• 1967—Ana. 9. 178.8 39.6 139.3 176.6 176.2 39.9 136.3 177.1 5.5 16.......................................... 179,2 39.6 139.7 177.1 176.6 39.8 136.8 177.6 3.8 23.......................................... 179.1 39.6 139.5 177.4 174.6 39.7 135.0 177.9 4.4 30.......................................... 179.1 39.6 139.5 178.1 175.3 39.4 135.9 178.4 3.2 179.7 39.7 139.9 178.4 177.4 40.0 137.4 178.8 4.2 * .......................................... 180.0 39.8 140.2 178.6 179.0 40.0 139.1 179,0 3.3 20 J’ 177.9 39.7 138.1 178.9 179.4 39.8 139.7 178.5 4.6 27” 179.4 39.7 139.7 179.1 177.4 39.5 137.9 178.9 6.9 1 At all commercial banks. and F.R. float; (2) foreign demand balances at F.R. Banks: and (3) cur­ rency outside the Treasury, F.R. Banks, and vaults of all commercial Note.—Revised data. For description of revision of series and for back banks. Time deposits adjusted are time deposits at all commercial data beginning Jan. 1959, see Aug. 1967 Bulletin, pp. 1303-1316; for banks other than those due to domestic commercial banks and the monthly data 1947-58, see June 1964 Bulletin, pp. 679-89. U.S. Govt. Effective June 9, 1966, balances accumulated for payment of Averages of daily figures. Money supply consists of (1) demand personal loans were reclassified for reserve purposes and arc excluded from deposits at all commercial banks other than those due to domestic com­ time deposits reported by member banks. mercial banks and the U.S. Govt., less cash items in process of collection AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Member bank reserves 1 re D se e r p v o e s r it e s q s u u ir b e j m ec e t n t t o s 2 Member bank reserves1 re D se e r p v o e s i r t e s q s u u i b re je m c e t n to ts 2 Period Total N bo o r n ­ ­ qu R ir e e ­ d Total T a i n m d e v P a r t i e ­ G U o .S vt . , Total N b o o n r­ ­ qu R ir e e ­ d Total T a i n m d e v P a r t i e ­ G U o .S vt . , rowed savings demand demand rowed savings demand demand 1964—Dec....... 21,10 20.84 20.80 216.7 104.2 107.4 5.1 21.64 21.40 21.23 219.1 103.0 111.3 4.8 1965—Dec....... 22.19 21.72 21.86 236.4 121,2 111,0 4.2 22.76 22.31 22.32 239.0 119.8 115.2 4.0 1966—Sept...... 22.62 21.83 22.22 245,5 129.2 112.4 3.9 22.53 21.77 22. 13 244.6 129.0 111.8 3.8 Oct..... 22.49 21.71 22.17 244.6 129.0 111,6 4.0 22.49 21.76 22. 19 244.6 128.4 112.0 4.3 Nov...... 22.43 21.86 22.11 244.0 128.4 111.6 4.0 22.43 21.82 22.04 243.0 127.3 112.5 3.2 Dec....... 22.42 21.85 22.14 244.4 129.4 111.7 3.2 23.00 22.44 22.61 247.1 127.9 116.1 3.0 1967—Jan........ 22.77 22.33 22.41 247.7 131.4 111.4 4.9 23.23 22.84 22.86 250.9 131.1 116.1 3.7 Feb....... 22.99 22.65 22.63 251.0 133.6 112.4 5.0 22.85 22.49 22.50 250.2 134.0 111.8 4.5 Mar...... 23.41 23.21 22.92 254.0 135.6 113.6 4.8 23.17 22.97 22.74 253.2 136.3 112.6 4.3 Apr....... 23.46 23.30 23.08 256.0 137.2 113.1 5.8 23.36 23.23 23.05 256.3 137.9 114.2 4.3 May.... 23.45 23.39 23.05 257.2 138.6 114.5 4.1 23.28 23.18 22.91 256.5 139.4 111.2 5.8 June.... 23.61 23.49 23.14 259.2 140.8 116.1 2.2 23.52 23.40 23.10 258.9 141.3 114.2 3.4 July.... 23.84 23.80 23.45 262.4 142.5 116.8 3.2 23.91 23.82 23.55 263.2 143.1 1 15.1 5.1 Aug 24.10 24.09 23.76 266. I 144.8 117.6 3.7 23.79 23.70 23.40 263.7 145.2 114.8 3.7 Sept.7’... 24.30 24.19 23.94 268.4 146.3 117.6 4.5 24.20 24.11 23.84 267.3 146.0 116.9 4.4 1 Averages of daily figures. Back data on member bank reserves adjust­ and demand balances due from domestic commercial banks. Elfectivc June ed to eliminate effects of changes in reserve requirement percentages. 9, 1966 .balances accumulated for repayment of personal loans were elim­ Series reflect percentage reserve requirements made effective Mar. 16, 1967, inated from time deposits for reserve purposes. 2 Averages of daily figures. Deposits subject to reserve requirements in­ clude total time and savings deposits and net demand deposits as defined Note.—Back data for the period 1947 to date may be obtained from by Regulation D. Private demand deposits include all demand deposits ex­ the Banking Section, Division of Research and Statistics, Board of Gover­ cept those due to the U.S. Govt., less cash items in process of collection nors of the Federal Reserve System, Washington, D. C. 20551. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 BANKS AND THE MONETARY SYSTEM 1767 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date c u u r r y ­ U.S. Government securities li i a ti b e i s l ­ Total Ca a p n i d t al Gold rency Other and deposits misc. out­ Total Loans, Coml. secu­ capital, and ac­ stand­ net L 2 and Federal rities 2 net currency counts, ing Total savings Reserve Other net banks Banks 1947—Dec. 31.................. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12 800 1950—Dec. 30.................. 22,706 4,636 171 J67 60'366 96*560 72,894 20J78 2 J88 14 J41 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 31’118 1965—Dec. 31.................. 13*733 5,575 399,'779 242 J06 106 J16 65,016 40,768 932 50,357 419,087 383 J27 35,359 1966—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 JOO Oct. 26.................. 13,300 6,200 410,500 253,500 102,500 58,500 42,800 1,200 54,500 429,900 388,300 41 ,*600 Nov. 30.................. 13*200 6,200 412,400 254,200 104,500 59,300 43,900 1,300 53,700 431,800 389,200 42'600 Dec. 31.................. 13*159 6,317 422,676 261,459 106,472 60,916 44,316 1,240 54,745 442,152 400'999 41,150 1967-—Jan. 25.................. 13,200 6,400 418,800 257,000 106,100 60,700 44,200 1,200 55 JOO 438,300 396,900 41,400 Feb. 22............... 13*100 6,400 420 J00 256 J00 107,300 61,300 44,700 1 ,400 57,200 440,300 396,900 43'400 Mar. 29.. ............... 13,100 6,500 426*100 259 J00 107 JOO 62,’500 44,500 700 58 JOO 445,700 403,500 42 J00 Apr. 26........... 13,100 6,600 430,400 261'800 107,600 60,600 45,400 1 ,500 61,000 450,100 406,800 43'300 M’ay 31 ................. 13,100 6,600 432;500 262'600 107,800 60,300 46,100 1,400 62,100 452,200 408,100 44,100 June 28”.......... 13 J00 6,600 436,100 266,300 106,200 58,600 46,200 I ,400 63,600 455,900 412 J00 43J00 July 26^................ 13*100 6'600 442,400 267 JOO 110,000 61,600 46,900 1 ,500 64 J00 462,100 418,000 44'100 Aug. 30 r”,........... 13,000 6 J00 445,400 267,900 111,400 63,600 46,200 1 ,600 66J00 465 J00 418*800 46,300 Sept. 27 ”............... 13,000 6,800 450,900 271 ,*400 112,700 64,500 46 JOO 1,500 66,800 470 JOO 424,400 46,300 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 3 Not seasonally adjusted Time U.S Government Date Total o b r u C e a t n u n s c i k r d y ­ s e d ju m e s D p a t a o e d e n d s ­ ­ d i t s 4 Total o b r u C e a t n u n s c i k r d y ­ s e j d u e m s D p a t a o e d e n d s ­ ­ d i t s 4 Total b m C a e n o r k m c s ia ­ l 1 b M sa a v n u i k t n u s g a s l 5 S P a S t o e v y s m i s t n a ­ g l s e n F i e g o t n r ­ 6 , T h c i u r n o a e r g l s y a d h s s ­ ­ s b a c a v a o A n n i m n d t k g l 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 92J72 59 J46 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—Sept. 28.... 167,200 36,700 130,500 166,100 36 JOO 129,300 211,300 156.900 54,200 200 1 JOO 1,100 6 JOO 1,300 Oct. 26.... 168,000 37,200 130,800 168 JOO 37,100 131,600 210,900 156,300 54,400 200 1 JOO 1 JOO 4,900 800 Nov. 30.... 169,200 37,300 131,900 171,500 38,000 133,500 210,300 155,800 54,500 100 I JOO 1 JOO 4,000 300 Dec. 31.... 170,400 37,600 132,800 178,304 39,003 139,301 213,961 158,568 55,271 122 1,904 1,176 5 J38 416 1967—Jan. 25.,.. 168,800 37,900 130,900 171,000 37,400 133,600 217,500 161 JOO 55,600 100 1 JOO 1 JOO 4,900 400 Feb. 22,,.. 167,700 38,300 129,400 166,800 37 JOO 129,000 220,200 164,200 55,900 100 1 JOO 1 JOO 6,400 400 Mar. 29.... 172J00 38,000 134 JOO 169,700 37,600 132,100 224,300 167,500 56,700 100 I JOO 1 ,300 5 JOO 700 Apr. 26.... 170,400 38,000 132,400 170,500 37,700 132,800 225,600 168,600 56,900 100 1 JOO 1 ,400 6,700 800 May 31 173,100 38,600 134,500 171,000 38,500 132,500 228,900 171,500 57,300 100 1,900 1,400 4,400 600 June 28p. .. 174,300 38,500 135,800 172,000 38,500 133,500 231,100 173,100 58,000 100 1,800 1,400 4 JOO 1 JOO July 26’’... 173,700 38,500 135,200 173,500 38,600 134,900 233,600 175,300 58,300 100 1 JOO I ,500 6,100 1,300 Aug. 30r”.. 175,400 38,500 136,900 173,800 38 JOO 135,100 236,400 177 JOO 58,600 LOO 1,900 1 ,500 3,900 I ,300 Sept. 27”... 176,900 38,600 138,300 175 JOO 38 JOO 137,100 237 JOO 178,200 59,000 100 1 ,900 1 ,500 7 JOO 700 1 Beginning with data for June 30,1966, about $1.1 billion in “Deposits bilities. accumulated for payment of personal loans” were excluded from “Time 6 Reclassification of deposits of foreign central banks in May 1961 re­ deposits” and deducted from “Loans” at all commercial banks. These duced this item by $ 1,900 million ($ 1,500 million to time deposits and $400 changes resulted from a change in Federal Reserve regulations. These hy­ million to demand deposits). pothecated deposits are shown in a table on p. 1771. 2 See note 2 at bottom of p. 1771. 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 I 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. I960. 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

1768 COMMERCIAL AND MUTUAL SAVINGS BANKS OCTOBER 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 . v S t . . Oth 2 er a C ss a e s t h s 3 c c b o a i ( a a l p u l n i c i t i n d i a ­ t e a t ­ s s l 4 Total 3 m D a e n ­ d Time U. D S. e ma O n t d her T 1 im . 5 e r B i o n o w g r s ­ ­ c c T a o a p o u c i t n ­ t a a t l s l b N a b o u n e m f k r s ­ Govt. All banks: 1941—Dec. 31., 61.126 26.615 25,511 8,99927,344 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. 316 134.924 43.002 81,199 10,72338,388 175,091 161,865 12,793 240 1.346 94.381 53.105 66 11,948 14.714 1965—Dec. 3! . 362,320246,946 65,01650,35761,916435,483 385,196 (8,426 1,009 5,532 160,847 199,38! 4,56434,935 14,309 1966—Sept. 28 373,370260.000 58,69054,68056,110441.490383,210 16,310 I ,060 6,000 148,49021 1,350 7,050 36,330 14,294 Oct. 26 372,800259,780 58,52054,50057,780442,350384,250 16,020 1,010 4,720151,560210,940 6,970 36,420 14,294 Nov. 30 374,510261,520 59,25053,74061,700448,240387,980 17,110 900 3,810 155,680210,480 7,950 36,770 14,288 Dec. 31 381,684266,022 60,91654,74570,085 464,376407,637 19,770 968 4,999 167,821 214,078 4,92936,926 14,271 1967—Jan. 25 379,860263,530 60,68055,65059,570451,390392,970 16,050 1,110 4,680 [53,470217,660 7,010 36,910 14,266 Feb. 22 380,920262,430 61,30057,19061,260454,340394,86016,640 1,180 6,200 150,490220,350 6,740 37,140 14,260 Mar. 29 387,050265,860 62,47058,72058,500457,800399.140 16,350 1,350 5,520 151 ,510224,410 6,270 37,380 14,264 Apr. 26. . 389,440267,820 60,630 60,99061,670463,590404,530 16,560 1,350 6.440 154,430225,750 6,640 37,440 14,262 May 31 .. 391,630269,230 60,31062,09065,060469,530409,52017,520 1,370 4,160 157,450229,020 7,080 37,800 14,246 June 28 ?, 396,110273,940 58,62063,55062,140471,170409,820 16,710 1 ,450 4,450 155,890231,320 7,860 37,810 14,247 July 26”. 400,730274,360 61,62064,75063.450477,030416,200 17,000 1 ,500 5,870 158,010233,820 6,910 37,870 14,247 Aug.30 n> 404,020274,300 63,63066,09060,120476,950415,040 16,730 I ,570 3,600 156,440236,700 6,520 38,260 14,245 Sept. 27^ 408,920277,580 64,53066,81062,720484,580422,63017,020 1,550 6,970159,620237,470 6,47038,090 Commercial banks: 1941—Dec. 31. 50.746 21,714 21.808 7.225 26.551 79.104 71 ,283 10.982 44,349 15.952 23 7.173 14,278 1945—Dec. 31 . 124,019 26,083 90,606 7,331 34,806 160.312 150,227 14.065 105,921 30,241 219 8.950 14.011 1947—Dec. 316 116.284 38,057 69.221 9.006 37,502 155,377 144,103 12,792 240 1,343 94.367 35,360 65 10.059 14.181 1965—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—Sept. 28 314,920212,500 53,61048.81055,260381,160328,940 16,310 1,060 6,000 148,440 157,130 7,05031 ,510 13,790 Oct. 26. 314,220211,980 53,59048,65056,980381 ,940 329,800 (6,020 1,010 4,720 151,510 156,540 66,,997700 31,630 13,789 Nov. 30. 315,770213,460 54,39047,92060,890387,650333,460 17,110 900 3,810 155,630 156,010 7,950 31,930 13,784 Dec. 31 322,661 217,726 56,163 48,77269,119403,368 352,287 19,770 967 4,992 167,751 t58,806 4,85932,054 13,767 1967—Jan. 25. 320,320214,970 56,00049,35058,600389,820337,320 16,050 1,110 4,680 153,410 162,070 7,010 32,050 13,762 Feb. 22. 320,890213,600 56,60050,69060,220392,220338,870 16,640 1,180 6,200 150,430 164,420 6,740 32,240 13,756 Mar. 29. 326,570216,750 57,83051,99057,360395,100342,400 16,350 1,350 5,520 151,450 167,730 6,270 32,470 13,760 Apr. 26. 328,610218,510 56,15053,95060,600400,6101347,590 16,560 1,350 6,440 154,370 168,870 6,640 32,580 13,758 May 31. 330,150219,480 55,88054,79063,960405,880352,140 17,520 1,370 4,160 157,380 171,710 7,080 32,880 13,743 June 28^ 334,190223,940 54,28055,97061,010407,020351,790 16,710 1,450 4,450155,820 173,360 7,860 32,880 13,744 July 26p 338,290224,210 57,22056,86062,370412,390357,83017,000 1,500 5,870 157,940 175,520 6,910 32,960 13,746 Aug. 30? 340,970223,770 59,26057,94059,09041 1,750356,340 16,730 1 ,570 3,600 156,370 178,070 6,520 33,290 13,742 Sept. 27?, 345,520226,850 60,21058,46061,690419,030363,58017,020 1 ,550 6,970 159,550 178,490 6,47033,120 Member banks: 1941—Dec. 31 43.521 18.02! 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. 251,577 169,800 44,99236,78552,814313,384275,517 17,454 840 4.890 132,131 120,202 4,23424,926 6,221 1966—Sept. 28. 257,809 178,421 39,80739,581 48,663316,011 271,229 15,225 890 5,448 121,728 127,938 6,684 25,843 6,171 Oct. 26, 256,797177,818 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 38,58053,564321,185 274,67616,188 730 3,448 127,757 126.553 7,459 26,189 6,158 Dec. 31 263,687 182,802 41,92438,96060,738334,559291,063 18,788 794 4,432 138,218 128,831 4,61826,278 6,150 1967—Jan. 25 261,583 180,244 41.77339,56651,387322,412277,46015,228 937 4,161 125,481 131.653 6,638 26,285 6,137 Feb. 22 .. 262,135 178,958 42,40440,773 52,973 324,7 53 279,014 15,828 1,006 5,506 123.124 133,550 6,426 26,453 6,130 Mar. 29. . 267,086 181,604 43,54541,93750,276327,040281,903 15,547 1,172 4,857 124,096136,231 6,044 26,639 6,129 Apr. 26. . 268,466 182,821 42,001 43,64453,487331,864286,486 15,742 1,172 5.899 126,642 137,031 6,40026,749 6,127 May 31. . 269,654183,480 41,90044,27456,487336,422290,441 16,716 1,194 3,629 129,570 139,332 6,765 27,009 6,113 June 28.. 273,151 187,426 40,46045,265 53,674337,151 289,858 15,909 1,276 3,930 128,046 140,697 7,44226,999 6,108 July 26. . 276,381 187,536 42,95745,888 55,166341,784294,97616,187 1,326 5,286 129,674142,503 6,625 27,061 6,108 Aug. 30. . 278,259 187,130 44,41646,71352,060340,576293,115 15,891 1,393 3,128 128,086 144,617 6,209 27,318 6,100 Sept. 27?. 281,993 189,870 45,003 47,12054,477346,853299,334 16,162 1 ,377 6,318 130,683 144,794 6,141 27,233 Mutual savings banks: 1941—Dec. 31. . 10,379 4.901 3.704 1,774 793 11.804 10.533 5 10,527 1,241 548 1945—Dec. 31. . 16.208 4.279 10.682 1,246 609 17.020 15.385 1I 15.371 7 1,592 542 1947—Dec. 31 6. , 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—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. 31 59,023 48,296 4,753 5,973 966 61^008 55,350 1 7 70 55’271 69 4,871 504 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 J 20 55,990 60 55,930 4,900 504 Mar. 29.. 60,480 49,110 4,640 6,730 1,140 62,700 56,740 60 56,680 4,910 504 Apr. 26. 60,830 49,310 4,480 7,040 1,070 62,'980 56,940 60 56,880 4,860 504 May 31. 61,480 49,750 4,430 7.300 1.100 63 650 57/380 70 57’310 4,920 503 June 28. 61,920 50,000 4,340 7,580 1,130 64,150 58,’030 70 57,960 4,930 503 July 26., 62,440 50,150 4,400 7,890 1,080 64,640 58',37O 70 58,300 4,910 501 Aug. 30r 63.050 50,530 4,370 8,150 1,030 65,200 58300 70 58 630 4,970 501 Sept. 27? 63,400 50,730 4,320 8,350 1,030 65,550 59,050 ......... 70 58,980 4,970 For notes see p. 1771. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 COMMERCIAL AND MUTUAL SAVINGS BANKS 1769 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 Loans G U o . v S t . . Oth 2 er a C ss a e s t h s 3 c c b o a i a l a l u p i n i c a t i n d i ­ t ­ e t a s s l 4 Total3 m D a e n ­ d Time U. D S. e ma O n t d her Time 1 r B i o n o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l b N a b u o n e m f k r s ­ Govt. Reserve city member banks: New York City:7’8 1941—Dec. 31 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 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—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, 31 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1 ,016 26,535 17,449 1,874 5,298 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. 26. 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 May 31 . 46,240 35,151 5,130 5,959 15,394 64,794 51,682 5,954 733 695 25,594 18,706 2,416 5,598 12 June 28. 47,653 36,662 4,809 6,182 13,109 63,971 50,588 5,319 804 761 24,738 18,966 2,421 5,557 12 July 26. 48,380 36,683 5,408 6,289 14,431 65,964 51,953 5,495 836 1,190 24,75419,678 2,536 5.600 12 Aug. 30. 48,521 36,360 5,634 6,527 12,940 64,698 50,639 5,102 867 574 24,011 20,085 2,140 5,663 12 Sept. 27^ 49,435 36,981 5,599 6,855 13,206 65,951 52,050 5,311 816 1,686 24,506 19,731 1,688 5,680 12 City of Chicago: 7 1941—Dec. 31 2,760 954 1 .430 376 1,566 4,363 4.057 1,035 127 2,419 476 288 13 1945—Dec. 31 5,931 1 .333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947—Dec. 31 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1965—Dec. 31 11,455 8,219 1,700 1,536 2,426 14,290 12,475 1,437 39 345 5,656 4,999 355 1,132 11 1966—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 It Oct. 26, 11,298 8,193 1 ,425 1,680 2,641 14,368 11,671 1,193 27 405 5,239 4,807 830 1,166 11 Nov. 30, 11,374 8,282 1,526 1,566 2,685 14,520 11,453 1,251 17 108 5,362 4,715 1,114 1,181 11 Dec. 31 11,802 8,756 1,545 1,502 2,638 14,935 12,673 1,433 25 310 6,008 4,898 484 1,199 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 12,223 1,244 11 283 5,184 5,501 951 1,193 11 Apr. 26. 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 May 31. 11,995 8,426 1,822 1,747 2,691 15,171 12,633 1,319 11 154 5,488 5,661 644 1,223 1 1 June 28. 12,136 8,778 1 ,628 1,730 2,805 15,445 12,536 1 ,250 11 225 5,372 5,678 767 1 ,213 1 1 July 26. 12,272 8,961 1 ,679 1,632 2,920 15,702 12,877 1,321 10 293 5,416 5,837 655 1 ,214 11 Aug. 30. 12,252 8,923 I ,714 1,615 2,606 15,352 12,668 1 ,242 11 127 5,246 6,042 498 1 ,226 11 Sept. 27p 12,249 9,065 1 ,574 1,610 2,791 15,556 12,986 1,230 14 432 5,346 5,964 490 1,224 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 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5.627 22 405 28.990 11,423 1 2,844 353 1965—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—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 13,63620,426 117,442101,512 7, 158 252 1,630 44,06648,406 2,999 9,387 170 Nov. 30 94,654 68,959 12,237 13,45820,732 118,882 102,611 7,918 223 1,074 45,21448,182 2,807 9,453 170 Dec. 31 95,831 69,464 13,040 13,32624,228 123,863 108,804 8,593 233 1,633 49,00449,341 1,952 9,471 169 1967—Jan. 25 95,162 68,491 12,875 13,79620,283 118,870 103,332 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 42,97851,281 2,957 9,481 168 Mar. 29. 97,875 68,880 13,724 15,271 19,706 121,135 105,418 7,387 361 1,825 43,54452,301 2,725 9,589 167 Apr. 26. 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 May 31. 98,906 69,174 12,938 16,79421,164 123,823 107,604 7,477 386 1,375 45,11453,252 3,072 9,701 166 June 28. 99,743 70,253 12,267 17,22320,894 124,360 107,794 7,396 392 1 ,571 44,62253,813 3,420 9,728 166 July 26. 100,800 69,989 13,437 17,37421,178 125,666 109,736 7,390 411 2,280 45,45654,199 2,862 9,739 165 Aug. 30. 101,242 70,004 13,733 17,50520,084 125,091 108,768 7,514 446 1,198 44,751 54,859 2,959 9,792 165 Sept. 27?' 102,633 71,321 13,926 17,38621,617 128,028 111,366 7,532 478 2,499 45,83455,023 3,304 9,840 164 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 55,118 51,675 343 9,673 6,027 1966—Sept. 28, 106,924 66,818 22,078 18,028 15,542125,209 111,642 2,380 74 1,659 51,56255,967 737 10,113 5,978 Oct. 26, 107,325 66,983 22,225 18,117 15,880 125,916112,276 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. 31 109,518 68,641 22,419 18,458 19,004131,338 117,749 2,392 69 1,474 56,67257,144 308 10,309 5,958 1967—Jan. 25 109,017 68,225 22,411 18,381 16,886 128,721 115,009 1,991 64 1,370 5 3,59957,985 74610,301 5,946 Feb. 22. 109,048 68,057 22,360 18,631 17,051 128,935 115,112 1,975 64 1,820 52,40758,846 630 10,335 5,939 Mar. 29. 110,439 69,056 22,491 18,892 16,600,129,920 116,201 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 May 31. 112,513 70,729 22,010 19,774 17,2381132,6341118,522 1 ,966 64 1,405 53,37461,713 633 10,487 5,924 June 28. 113,619 71,733 21,75620,130 16,866 133,375 118,940 1,944 69 1,373 53,31462,240 834 10,501 5,919 July 26. 114,929 71,903 22,433 20,593 16,637 134,452 120,410 1,981 69 1,523 54,04862,789 572 10,508 5,920 Aug. 30. 116,244 71,843 23,335 21,066 16,430 135,435 121,040 2,033 69 1,229 54,07863,631 612 10,637 5,912 Sept. 27^ 117,676 72,503 23,90421,269 16,863 137,318 122,932 2,089 69 1,701 54,99764,076 659 10,489 5,909 For notes see p. 1771. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1770 COMMERCIAL AND MUTUAL SAVINGS BANKS OCTOBER 1967 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— b c C a a l n l a l k s d s a a o n te f d Total Lo 1 a . n 2 s G U o S . v S e t . c . uri O tie t s h 2 er as C s a e s ts h 3 c c b o T a i a u a l l o p i n i c n a t i t d ­ i t a ­ t e a s l s l 2 Total 3 m I D n a e n te ­ d rba T n i k m 3 e U.S D . ema O O n t t d h h e e r r Ti 1 m ,5 e r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N ba b o u n e f m k r s ­ Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10.654 1,762 41.298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88.912 7,131 34,292 157,54< 147,775 13,883 23,741 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 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 5,50^ 159,659 146.084 4,325 29,827 13,540 1966—June 30.. 312,982211,588 53,111 48,282 59,489 383,445 337,146 16,761 1 ,021 10,972 152,839 155,554 4,12630,873 13,552 1966—Dec. 31.. 321,473 217,379 55,78848,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,71731,609 13,533 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 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,53470,746 1,109 15.048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,75593,642 3,120 18,459 4,799 1967—June 30. 195,338 132,725 29,54433,069 39,462 242,039 211,098 11,330 746 3,202 93,064 102,756 3,419 19,097 4,780 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 4,41 1 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 1964—Dec. 31.. 77.091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1 ,372 7,853 1 ,452 1965—Dec. 31 . 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,351 (967—June 30. 78,907 55,069 11,091 12,746 17,931 100,232 86,431 5,837 567 1,379 39,483 39,166 1,501 8,140 1,328 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 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 27,528 25,882 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 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 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 2,452 131 1,905 365 4 279 714 1947—Dec. 31 «. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 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 ri 26 1,007 626 227 425 249 1966—Dec. 31.. 2,400 1,570 367 463 604 3,171 2,073 274 86 17 1 ,062 633 142 434 233 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 1 01 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 1964—Dec. 31.. 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 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 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173 560 29,532 30,258 241 5,776 7,617 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 ......... i: 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 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 1966—Dec. 31.. 51,267 42,591 3,324 5,352 847 53,047 48,254 1 6 381 47,865 69 4,140 330 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 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 1966—Dec. 31.. 7,756 5,705 1,429 621 119 7,961 7,096 1 19 7,076 732 174 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 COMMERCIAL BANKS 1771 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total i,2 Loans1,2 Total1, 2 Loans1,2 G U o . v S t . . Other 2 G U o v S t . . Other 2 1958—Dec. 31........................................................... 181 2 95 6 65.1 20.5 184.4 97 5 66 4 70 6 1959—Dec. 31......................................................... 185 9 107.5 57.9 20.5 189 5 110 0 58*9 20 5 1960—Dec. 31............................................................ 194 5 113 8 59.8 20.8 1985 116.7 61 0 70 9 1961—Dec. 30............................................................ 209.6 120,5 65.2 23.9 214.4 123.9 23 9 1962—Dec. 31............................................................ 227.9 134.1 64.5 29.2 233 6 137 9 66.4 29 1 1963—Dec. 31............................................................ 246.2 149 7 61.5 35.0 252 4 153.9 63 4 35 1 1964—Dec. 31............................................................ 267.2 167 7 60.7 38.7 273.9 172.1 63.0 38'8 1965—Dec. 31............................................................ 294.4 192.4 57.3 44.8 301,8 197 4 59 5 44 9 1966—Sept. 28............................................................ 309.4 206.2 54.9 48.3 308.8 206.4 53.6 48 8 Oct. 26............................................................ 308,9 207.2 53.4 48.4 308 6 205.8 53 6 48 7 Nov. 30............................................................ 309 3 207 5 53.4 48.4 309 0 206.7 54 4 47 9 Dec. 31............................................................ 310.2 207 8 53.7 48.7 3179 213 0 56'2 48 8 1967—Jan. 25............................................................ 314.4 210.4 54.2 49.9 313 8 208.5 56.0 49 4 Feb. 22.......................................................... 318 0 211 0 55.9 51.1 314 5 207 2 56.6 50 7 Mar. 29...................................................... 321.4 211.3 57.8 52.3 320 1 210.3 57. 8 52'0 Apr. 26.......................................................... 323.0 213.3 56.1 53.6 322.3 212.2 56,2 54.0 324.3 213.1 56.2 55.1 323.4 212.7 55 9 54 8 324.9 213.2 55.9 55.8 328.8 217.9 54 8 56. I July 26?.......................................................... 333.2 217.6 58.8 56.7 331.5 217.4 57.2 56.9 Aug. 30?........................................................ 337.1 217.7 61.9 57.5 334.1 216.9 59.3 57.9 Sept, 27”.......................................................... 339.3 219.7 61.7 57.9 338.6 220.0 60.2 58.5 i Adjusted to exclude interbank loans. Note.—Data are for last Wed. of month except for June 30 and Dec. 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated 31; data are partly or wholly estimated except when June 30 and Dec, 31 for payment of personal loans were deducted as a result of a change in are call dates. Federal Reserve regulations. The data in this table are revised. For a description of the revision and Beginning June 30, 1966, CCC certificates of interest and Export­ for back data beginning with January 1959, sec the Sept. 1967 Bulletin, Import Bank portfolio fund participation certificates totaling an estimated pp. 1511-17; for data for 1948-58 see the Aug. 1966 Bulletin, pp. 952­ SI billion are included in “Other securities" rather than “Other loans.’’ 55. For a description of the semiannually adjusted series, see the July 1962 3 June 30, 1967, estimated. Bulletin, pp. 797-802. DEPOSITS ACCUMULATED AT COMMERCIAL BANKS FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) June 30, Dec. 31, June 30, Dec. 31, Class of bank 1966 1966 Class of bank 1966 1966 All commercial................................................... 1,150 1,223 All member (cont.)— Insured............................................................... 1,150 1,223 Other reserve city.............................................. 338 370 National member............................................... 678 729 Country.................................................. 532 571 State member.................................................... 193 212 All nonmember.............2..8.0................2..8..3............... All member............................................................ 870 941 Insured......................................................... 279 282 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. 1600, or from “Loans” and “Time deposits, as follows: in the tables on pp. 1597-99; in the table at the top of this IPC” in the tables on pp. 1602-03. page; and in the tables on pp. 1604-07 (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, and $268,000 on See June 1966 Bulletin, p. 808.) Dec. 31, 1966. Notes to tables on pp. 1768-1770. 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 "Deposits Accumulated at Commercial Batiks for Payment was reclassified as a reserve city bank. Beginning with May 13, 1965, of Personal Loans" and its notes above. 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 banks on the following two pages. definition, of “commercial banks” as used in this table, and for other 3 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. Bulletin. 5 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. (964, 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. 5 87, May 1964 pp. 870-71. Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1772 COMMERCIAL BANKS OCTOBER 1967 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To purchasing financial U.S. Government Total or carrying securities 5 institutions Class of loans 1 Fed­ Com- securities Other, State bank and and eral mer- Agri- Real to and Other call date i m nv e e n s t t s ­ funds T 2 o , t 3 al c a i n a d l c tu u r l- - To t e a s t ­ e d in i ­ ­ Oth 4 er g lo o c v a t l , s ri e ti c e u s r * ­ in­ al 4 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o er s Banks Others uals2 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1964—Dec. 31.. 277,376 175,589 60,217 7,505 5,5422,843 3,491 10,91343,67539,8095,15262,991 13,377 19,039 30,574 33,533 5,263 1965—Dec. 31.. 306,060 ’2J03 199,555 71,437 8,2125,258 3,231 2, 158 13,29149,30045,468 5,215 59,547 n.a. n.a. n.a. 38,655 6,201 1966—June 30.. 315,388 2,129 211,001 77,245 8,488 5,3503,283 1,971 13,93351,89947,6825,227 53,503 n.a. n.a. n.a. 40,612 8,142 1966—Dec. 31.. 323,885 2,544216,405 80,598 8,555 5,821 3,203 2,189 13,30253,95047,943 5,183 56,163 n.a. n.a. n.a.41,0037,769 All insured: 1941—Dec, 31., 49,290 21,259 9,214 1,450 614 662 40 4,773 4,205 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 I 13288,912 21,526 16,04551,342 3,873 3 258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1964—Dec. 31.. 275,053 174,23459,746 7,4825,355 2,794 3,419 10,81243,43639,6275,11262,499 13,275 18,93930,285 33,2945,026 1965—Dec. 31.. 303,593 2,064 198,04570,887 8,191 5,088 3,172 2^93 13,14849;02645,2905,15559,120 13,134 13,23333,858 38,4195,945 1966—June 30.. 312,982 2,061 209,52776,725 8,4705,2223,222 1,929 13,77351,59947,5065,15253,111 9,174 12,38932,70940,3687,914 1966—Dec. 31.. 321,473 2,461 214,918 80,0608,5365,643 3,148 2,131 13,14853,68647,7705,12755,788 12,080 13,43931,53640,761 7,545 Member, total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3.653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,05778,338 19,260 14,271 44,807 3,254 2,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1964—Dec. 31.. 228,497 147,69053,717 4,643 5,142 2,411 3,250 10,179 34,587 32,0244,82448,717 9,932 15,23823,548 28,374 3,715 1965—Dec. 31.. 251,577 ‘h86i 167,93963,9795,099 4,915 2,714 2,008 12,475 38,988 36,418 4,83244,992 9,441 10,10626,367 32,588 4,198 1966—June 30.. 258,638 1,772 177,35569,357 5,244 5,0362,717 1,861 13,06840,862 37,933 4,80839,942 6,384 9,11825,42633,896 5,672 1966—Dec. 31.. 264,627 2,119 181,62472,5535,318 5,3892,660 2,047 12,34942,38437,9254,75741,924 8,567 9,78924,60933,8005,160 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 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 1966—Dec. 31.. 46,536 109 35,83221,214 17 3,109 598 1,025 3,265 3,465 2,799 1,209 4,920 1,871 942 2,286 4,967 708 City of Chicago: 1941—Dec. 31.. 2,760 954 732 6 48 52 1 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 l,'801 1,418 3 73 87 46 149 26 2,890 '367 248 2,274 213 185 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 1966—Dec. 31.. 11,802 31 8,724 5,311 64 406 222 181 1,161 622 751 273 1,545 353 256 1,004 1,328 174 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 J47 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1964—Dec. 31 . 84,670 57,555 21,102 1,095 1,060 986 1,134 4,887 13,611 12,802 1,977 16,326 3,200 5,662 7,463 9,871 918 1965—Dec. 31.. 91,997 ''*47i 64,646 24,784 1,206 954 1,108 635 5,820 15,05614,305 1,999 14,354 2,972 3,281 8,432 11,5041,022 1966—June 30.. 94,169 526 67,591 26,903 1,255 899 1,123 574 5,911 15,62914,672 1,857 12,182 1,720 2,520 8,344 12,361 1,509 1966—Dec. 31.. 96,201 817 69,01728,090 1,251 1,084 1,079 684 5,74816,04414,375 1,968 13,040 2,552 2,673 8,22212,033 1,294 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,2221,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 11881 707 35926,999 5,732 4,54416,722 1'3421,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,10817,687 2,006 1,262 1964—Dec. 31.. 93,759 55,733 14,556 3,493 830 599 710 1,730 17,96415,899 1,04724,341 4,209 7,20612,925 11,531 2,154 1965—Dec. 31.. 103,362 905 62,433 16,478 3,840 650 698 174 1,983 20,217 18,423 1,177 23,735 4,389 5,565 14,098 13,8052,483 1966—June 30.. 106,300 1,002 65,645 17,657 3,938 437 693 150 1,966 21,230 19,552 1,261 21,709 2,808 5,563 13,655 14,8493,095 1966—Dec. 31.. 110,089 1,161 68,051 17,9383,986 790 761 157 2,17522,25320,000 1,30722,419 3,791 5,917 13,096 15,4732,985 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 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 86511,037 9,749 420 13,561 n.a. n.a. n.a. 6,716 2,470 1966—Dec. 31.. 59,257 425 34,781 8,045 3,237 431 543 142 95311,56610,018 427 14,239 n.a. n.a. n.a. 7,2032,609 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 oi Personal Loans, p. 1771. 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

OCTOBER 1967 COMMERCIAL BANKS 1773 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d s B e w F R a r . i v n R e t e h k ­ . s s r C c e a o n n u i c d r n y ­ b m a w a B d n e n i c o a s t k e l t h ­ ­ i s s c 6 ju m p D s o d a a t d s e e e n i ­ ­ d ­ t d s 7 m D e In s o t t ­ i e c r 6 ba e F n ig k o n r ­ 8 G U o v S t . . S g l a o o t n c a v d a t t e l . c C c h a o f e e e i e n t f e r c r f c d d t s i . k i ­ ’ ­ s, I PC I b n a t n e k r­ G P S U i a n o o a n . g s v v S d s t ­ t . a , l S g l a o o t n c a v d a t t e l . IPC2 B r i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s 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 in 866 34,383 65 10,059 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 9,812 116,635 2,679 27,795 1965—Dec. 31 ... . 17.992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 t ,008 263 12,186 134,247 4,472 30,272 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 12,634 143,315 4,353 31,309 1966—Dec. 31.. . . 19,069 5,450 15,870 142,104 17,867 1,904 4,992 15,047 7,051 145,653 967 238 13,462 146,3294,859 32,054 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 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 2,580 27,377 1965—Dec. 31.... 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,686 4,325 29,827 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 12,584 142,738 4,126 30,873 1966—Dec. 31 .... 19,069 5,426 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414 145,7444,71731,609 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 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 4,234 24,926 1966—June 30... . 18,094 4,044 8,148 106,472 14,752 1 ,412 9,979 11,445 6,095 109,032 928 204 10,334 117,028 3,985 25,678 1966—Dec. 31 ... . 19,069 4,249 9,400 112,920 17,051 1,736 4,432 11,406 6,396 120,417 794 213 10,983 118,5764,61826,278 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 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 1966—Dec. 31.... 4,062 326 201 18,013 5,105 1,265 1,016 608 3,814 22,113 467 83 918 16,447 1,874 5,298 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 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 1966—Dec. 31. . .. 815 92 136 4,502 1,362 71 310 286 146 5,575 25 1 356 4,541 484 1,199 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 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 1966—Dec. 31.... 8,353 1,326 2,517 37,572 8,249 343 1,633 3,708 1,274 44,022 233 57 5,450 44,204 1,952 9,472 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 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 50,745 416 10,050 1966—Dec. 31. ... 5,839 2,506 6,545 52,832 2,335 57 1,474 6,805 1,161 48,706 69 71 4,260 53,384 308 10,309 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 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 1966—Dec. 31. ... 1,201 6,471 29,184 815 167 560 3,641 655 25,237 173 26 2,479 27,753 241 5,776 6 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 ? Through I960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and s For reclassification of certain deposits in 1.961, 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

1774 WEEKLY REPORTING BANKS OCTOBER 1967 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans2 For purchasing To financial institutions or carrying securities Total Loans i Wednesday m i l n o a e v a n n e n d t s s s t ­ 1 v s n t e a e r i r l o 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 l s ­ ­ ­ A t c u u g r l r a ­ i l ­ G c U a T t s u o i n e . e o r S v d ­ s i t . - b , d r e o O a c k l t s u e t e i e e h r r r ­ s s i s e ­ r G c U t s u i T o e e . r S v o ­ s i t . ­ , o th O c e t s u i t r e e h s r ­ s i e ­ r F ei o g r n B ­ ank c m m D s t o i e e o m c s r ­ ­ ­ ­ f P s c i a a n o e N n l a r s e d s n . o s , , . n ba O n t k her e R st e a a t l e s i m n C u s m o e ta n n e l ­ t r ­ g e o F ig v o n t r s ­ . ot A h l e l r V se t a r i r o e l v u ­ n e a s ­ cial etc. Large banks— Total 1966 Sept. 7......... 184,654 134,279 58,338 1,804 749 3,073 112 2,187 1,508 3,031 5,940 4,691 27,221 16,183 1,148 11,069 2,775 14......... 185,05C 134,581 58,674 1,793 663 3,155 108 2,176 1 ,488 3,003 5,933 4,724 27,301 16,192 1,152 10,992 2,773 21......... 185,785 135,461 59,436 1,794 797 3,123 106 2,168 1,495 2,594 6,407 4,689 27.335 16,156 1,148 10,982 2,769 28......... 185,867 135,148 59,440 1 ,789 536 3,014 106 2,170 1,510 2,946 6,131 4,694 27,403 16,159 1,132 10,888 2,770 1967 Aug. 2......... 198,896 140,628 63,445 1 ,910 1,351 3,833 75 2,196 1,328 3,358 5,576 4,331 27,797 16,091 1,135 11,170 2,968 9......... 197,140 139,448 62,894 1 ,906 1,243 3,823 72 2,233 1,3^5 3,083 5,312 4,357 27,854 16,080 1,115 11,105 2,964 16......... 197,800 140,020 63,056 1,900 1,228 3,588 72 2,232 1,309 3,576 5,354 4,328 27,979 16,079 1,091 11,192 2,964 23......... 196,894 139,074 62,554 1,905 1,031 3,490 75 2,253 1,323 3,540 5,154 4,311 28,042 16,108 1 ,125 11,126 2,963 30......... 198,441 139,120 62,189 1,899 1,389 3,296 77 2,262 1,332 3,632 5,111 4,384 28,094 16,153 1,129 11,128 2,955 Sept. 6......... 198,839 139,352 62,238 1 ,907 1,057 3,533 77 2,271 1,330 3,557 5,323 4,393 28,107 16,136 1,138 11,243 2,958 13......... 199,083 139,370 62,285 I ,898 1,296 3,542 73 2,281 1 ,326 3,242 5,265 4,421 28,202 16,125 1,138 11,235 2,959 20......... 201,313 141,396 63,149 I ,893 1 ,422 3,719 77 2,308 1 ,336 3,471 5,529 4,566 28,286 16,137 1,133 11,330 2,960 27......... 201,365 141,648 63,372 1 ,888 1 ,279 3,535 96 2,337 1,342 3,639 5,614 4,571 28,337 16,159 1,126 11,312 2,959 New York City 1966 Sept. 7...... 43,269 33,443 19,297 13 415 1,742 33 628 842 1,024 1,875 1,183 3,216 1,282 756 1 ,910 773 14......... 43,429 33,446 19,468 13 364 I ,809 32 623 834 861 1 ,873 1,179 3,243 1,281 762 1,877 773 21......... 43,863 33,982 19,896 13 409 1,784 29 622 839 780 2,041 1,193 3,248 1,278 756 1,865 771 28......... 43,878 33,808 19,938 13 234 1 ,709 29 620 844 1,060 1,788 1,187 3,269 1,274 753 1,861 771 1967 Aug. 2......... 46,070 35,369 21,492 11 626 2,361 13 632 672 908 1,610 1,018 2,997 1,240 725 1,902 838 9......... 45,087 34,610 21,125 11 619 2,380 12 643 677 693 1,499 1,016 3,001 1,228 724 1 ,820 838 16......... 45,317 34,769 21,272 II 654 2,229 12 639 651 766 1,546 1,007 3,026 1,232 728 1,834 838 23 45,332 34,769 21,057 10 467 2,115 13 651 674 1,337 1,449 1,012 3,020 1,232 762 1,807 837 30......... 45,797 34,655 20,877 10 801 1,944 12 650 680 1,203 1,441 1,027 3,024 1,237 770 1,809 830 Sept. 6......... 45,740 34,426 20,919 10 493 2,151 12 652 678 883 1 ,562 1,029 3,014 1,232 773 1,852 834 13......... 45,410 34,029 20,850 11 502 2,128 12 654 671 708 1 ,465 1,026 3,018 1 ,233 761 1.824 834 20......... 46,615 34,915 21,140 11 518 2,288 12 679 666 780 1 ,657 1,100 3,033 1 ,237 759 1,869 834 27......... 46,658 35,227 21 ,255 12 420 2,079 12 695 656 1,151 1,716 1,115 3,031 1,237 758 1 ,924 834 Outside New York City 1966 Sept. 7......... 141,385 100,836 39,041 1,791 334 1,331 79 1,559 666 2,007 4,065 3,508 24,005 14,901 392 9,159 2,002 14......... 141,621 101,135 39,206 1,780 299 1,346 76 1,553 654 2,142 4,060 3,545 24,058 14,911 390 9,115 2,000 21......... 141,922 101,479 39,540 1,781 388 1,339 77 1,546 656 1,814 4,366 3,496 24,087 14,878 392 9,117 1,998 28......... 141,989 101,340 39,502 1,776 302 1,305 77 1,550 666 1,886 4,343 3,507 24,134 14,885 379 9,027 1,999 1967 Aug. 2......... 152,826 105,259 41,953 1,899 725 1,472 62 1,564 656 2,450 3,966 3,313 24,800 14,851 410 9,268 2,130 9......... 152,053 104,838 41,769 1,895 624 1,443 60 1,590 658 2,390 3,813 3,341 24,853 14,852 391 9,285 2,126 16......... 152,483 105,251 41,784 1,889 574 1,359 60 1,593 658 2,810 3,808 3,321 24,953 14,847 363 9,358 2,126 23......... 151,562 104,305 41,497 1,895 564 1,375 62 1,602 649 2,203 3,705 3,299 25,022 14,876 363 9,319 2,126 30......... 152,644 104,465 41,312 1,889 588 1,352 65 1,612 652 2,429 3,670 3,357 25,070 14,916 359 9,319 2,125 Sept. 6......... 153,099 104,926 41,319 I ,897 564 1,382 65 1,619 652 2,674 3,761 3,364 25,093 14,904 365 9,391 2,124 13......... 153,673 105,341 41,435 1,887 794 1,414 61 1,627 655 2,534 3,800 3,395 25,184 14,892 377 9,411 2,125 20......... 154,698 106,481 42,009 1 ,882 904 1,431 65 1 ,629 670 2,691 3,872 3,466 25,253 14,900 374 9,461 2,126 27......... 154,707 106,421 42,117 1,876 859 1,456 84 1,642 686 2,488 3,898 3,456 25,306 14,922 368 9,388 2,125 For other notes see p. 1777. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 WEEKLY REPORTING BANKS 1775 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with— Cer­ No m tes a tu an ri d n g b — onds O o p b s f o l u i a l S b g n i d t t a d i a t i c t i v a e o . l s n s O co t s h e rp e c a r u , n r s b d i t t o o i n e c s d k s s , Total p i C r t o e o i a n c m s f e h s s s Do­ For­ r C e a n n u c d r y ­ se F w R r . v i R e t e h ­ . s a o s t A s h e l e l t s r Wednesday Total Bills c t a if te i­ s W 1 i i y n t r h . ­ 5 1 y t r o s . 5 A f y t r e s r . r w a T n a a t x r s ­ 3 o A th l e l r p p C a a r e t o i t r i o f t c i n f i­ . 4 O s r e i t t c h ie u e s ­ r co ti l o le n c­ m ba e n st k ic s b e a ig n n k s coin Banks Large banks— Total 1966 22,802 2,876 739 3,166 9,446 6,575 3,019 21,236 1,116 2,202 39,211 18,757 3,946 204 2,442 13,862 7,780 .......Sept. 7 22,893 3,064 744 3,110 9,439 6,536 3,030 21,179 1,100 2,267 42,069 20,801 4,426 204 2,615 14,023 7,722 14 22,716 2,885 733 3,129 9,413 6,556 2,955 21,266 1,104 2,283 39,755 18,593 4,105 200 2,569 14,288 7,571 21 23,180 3,359 740 3,176 9,308 6,597 2,999 21,198 1,108 2,234 37,808 17,437 3,748 191 2,630 13,802 7,787 28 (967 26,004 4,738 225 2,810 12,750 5,481 3,663 24,485 1,261 2,855 43,544 21,208 4,215 209 2,585 15,327 8,651 .......Aug. 2 25,458 4,243 220 2,766 12,772 5,457 3,734 24,428 1,247 2,825 41,866 19,900 3,927 216 2,591 15,232 8,603 9 25,628 4,197 12 3,275 13,007 5,137 3,792 24,318 1,257 2,785 43,199 21.125 4,098 219 2,624 15,133 8,476 16 25,581 4,174 6 3,434 12,860 5,107 3,826 24,378 1,281 2,754 40,934 19,485 3,726 220 2,698 14,805 8,522 23 26,903 4,624 5 3,524 13,639 5,111 4,069 24,264 1,308 2,777 40,605 19,400 3,837 239 2,786 14,343 8,582 ............... 30 26,822 4,676 5 3,534 13,475 5,132 4,272 24,379 1,285 2,729 45,490 22,385 4,229 200 2,565 16,111 8,717 Sept. 6 27,138 5,039 5 3,531 13,422 5,141 4,223 24,422 1,252 2,678 44,242 22,124 4,141 203 2,809 14,965 8,631 ..................13 27,423 5,278 3,531 13,811 4,803 4,304 24,285 1,260 2,645 44,112 21,713 4,168 227 2,722 15,282 8,504 .................20 27,043 5,065 3,541 13,706 4,731 4,387 24,341 1,277 2,669 42,860 20,449 3,842 241 2,807 15,521 8,695 .................27 blew York City 1966 4,163 1,078 226 467 1,079 1,313 825 4,043 282 513 11,010 6,570 173 91 323 3,853 2,929 .......Sept. 7 4,301 1,224 239 465 1,054 1,319 827 4,002 283 570 11,709 6,942 223 85 314 4,145 2,857 14 4,202 1,129 231 456 1,041 1,345 819 4,001 279 580 10,905 6,553 238 76 320 3,718 2,743 21 4,399 1,322 234 491 950 1,402 838 3,991 280 562 10,896 6,355 214 73 325 3,929 2,866 28 1967 4,943 1,277 101 526 1,954 1,085 777 4,305 74 602 12.619 7,781 247 83 331 4,177 3,153 .......Aug. 2 4,823 1,143 101 500 1,984 1,095 780 4,212 72 590 12.677 7,958 271 99 338 4,011 3,175 ................. 9 4,758 1,093 842 1,892 931 925 4,206 70 589 12,539 7,475 262 109 323 4,370 3,130 ..................16 4,750 1,104 846 1,872 928 936 4,232 71 574 12,276 7,752 213 105 333 3,873 3,214 .................23 5,223 1,373 860 2,066 924 1,107 4,164 71 577 12,608 7,964 206 117 343 3,978 3,129 .................30 5,198 1,414 887 1,984 913 1,269 4,208 69 570 13,381 8,424 183 81 349 4,344 3,166 5,289 1,552 904 1,920 913 1,295 4,153 65 579 12,596 7,756 248 93 350 4,149 3,168 ..................13 5,500 1,697 886 2,030 887 I ,422 4,144 64 570 12,494 7,668 279 106 342 4,099 3,127 .................20 5,163 1,488 877 1,912 886 1,494 4,116 61 597 12,875 7,863 287 112 348 4,265 3,211 .................27 Outside New York City 1966 18,639 1,798 513 2,699 8,367 5,262 2,(94 17,(93 834 1,689 28,201 12,187 3,773 (13 2,1(9 (0,009 4,851 .......Sept. 7 18,592 1,840 505 2,645 8,385 5,217 2,203 17,177 817 I ,697 30,360 13,859 4,203 119 2,301 9,878 4,865 14 18,514 1,756 502 2,673 8,372 5,211 2,136 17,265 825 1,703 28,850 12,040 3,867 124 2,249 10,570 4,828 21 18,781 2,037 506 2,685 8,358 5,195 2,161 17,207 828 1,672 26,912 11,082 3,534 118 2,305 9,873 4,921 28 1967 21,061 3,461 124 2,284 10,796 4,396 2,886 20,180 1,187 2,253 30,925 13,427 3,968 126 2,254 11,150 5,498 .......Aug. 2 20,635 3,100 119 2,266 10,788 4,362 2,954 20,216 1,175 2,235 29,189 11,942 3,656 117 2,253 11,221 5,428 9 20,870 3,104 12 2,433 11,115 4,206 2,867 20,112 1,187 2,196 30,660 13,650 3,836 110 2,301 10,763 5,346 16 20,831 3,070 6 2,588 10,988 4,179 2,890 20,146 1,210 2,180 28,658 11,733 3,513 115 2,365 10,932 5,308 23 21,680 3,251 5 2,664 11,573 4,187 2,962 20,100 1,237 2,200 27,997 11,436 3,631 122 2,443 10,365 5,453 ................ 30 21,624 3,262 5 2,647 11,491 4,219 3,003 20,171 1,216 2,159 32,109 13,961 4,046 119 2,216 11,767 5,551 .......Sept. 6 21,849 3,487 5 2,627 11 ,502 4,228 2,$28 20,269 1,187 2,099 31,646 14,368 3,893 110 2,459 10,816 5,463 13 21,923 3,581 2,645 11,781 3,916 2,882 20,141 1,196 2,075 31,618 14,045 3,889 121 2,380 11,183 5,377 20 21,880 3,577 2,664 11,794 3,845 2,893 20,225 1,216 2,072 29,985 12,586 3,555 129 2,459 11,256 5,484 27 For other notes see p. 1777. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1776 WEEKLY REPORTING BANKS OCTOBER 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 Total 5 IPC p d s i o u c iv l a b i i l t ­ ­ ­ G U o .S vt . . c m c o t i i e m a c r l ­ ­ G e o tc v . t 6 ., C m c o i e a m r l ­ ­ Total? S in a g v s ­ Other p d s i o u i c v l a b i i l t ­ ­ ­ i b m n t a i t e c n e 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 Sept. 7................... 195,616 104,390 76,465 5,472 2,220 13,248 636 1,443 91,226 47,310 30,839 7,911 659 4,099 244 14.................. 198,705 107,670 81,070 5,228 1 ,378 13,401 591 1,424 91,035 47,256 30,605 8,007 660 4,109 230 21.................. 197,091 106,496 78,072 5,234 3,851 12,624 586 1,507 90,595 47,269 30,396 7,857 636 4,037 230 28................... 195,374104,851 76,248 5,706 4,515 11,710 725 1 ,421 90,523 47,351 30,327 7,790 633 4,028 220 1967 Aug. 2................... 213,190112,459 81,030 6,089 3,458 13,445 663 1,581 100,731 47,836 36,604 9,718 1,094 5,062 217 9................... 209,538 108,457 78,410 5,565 2,789 13,170 642 1,556 101,081 47,899 36,871 9,751 1,099 5,042 225 16................... 210,884 109,725 81,127 5,351 2,134 13,603 635 1,542 101,159 47,908 36,945 9,738 1,105 5,032 235 23................. 208,195 106,679 78,502 5,102 2,479 12,794 607 1,511 101,516 47,931 37,247 9,743 1,112 5,033 254 30................... 209,513 107,686 79,157 5,503 2,322 12,643 616 1,510101,827 47,957 37,449 9,841 1 ,099 5,024 262 Sept. 6................... 214,607 112,759 81,557 5,533 2,415 14,468 637 1,503 101,848 48,002 37,439 9,813 1,099 5,032 269 13................... 213,320 111,521 83,826 5,110 1 ,035 13,812 617 I ,554101,799 48,027 37,406 9,761 1,090 5,052 268 20................... 215,331 113,917 82,569 5,171 5,061 13,430 667 I ,556101,414 48,109 37,087 9,611 1 ,056 5,090 270 27................... 214,702 113,043 81,444 5,665 5,353 12,846 675 1 ,505 101,659 48,349 37,174 9,542 1,057 5,080 265 New York City 1966 Sept. 7................... 44,453 26,372 17,651 240 475 3,442 493 1,009 18,081 4,672 9,031 841 406 2,913 140 14................... 45,236 27,323 19,017 301 197 3,636 460 998 17,913 4,660 8,867 846 401 2,931 127 21................... 45,292 27,579 18,115 306 1,165 3,556 46! 1 ,070 17,713 4,658 8,840 744 393 2,871 127 28................... 45,187 27,576 17,881 396 1 ,503 3,301 590 997 17,611 4,666 8,776 713 393 2,864 117 1967 Aug. 2................... 48,928 29,835 19,239 357 909 3,811 530 1,089 19,093 4,723 9,001 972 726 3,464 126 9................... 47,786 28,607 18,179 306 598 3,718 496 1,068 19,179 4,724 9,071 1,003 728 3,447 136 16................... 47,370 28,307 18,814 340 449 3,898 501 1,055 19,063 4,725 8,950 1,040 726 3,413 139 23................... 47,405 28,282 18,328 301 501 3,848 473 1,024 19,123 4,725. 9,035 1 ,018 731 3,396 146 30................... 47,999 28,826 18,684 366 566 3,707 487 1,036 19,173 4,722 9,062 1,063 716 3,390 151 Sept. 6................... 48,906 29,880 18,873 320 579 4,082 495 1 ,031 19,026 4,720 8,930 1 ,053 711 3,386 156 13................... 47,593 28,692 19,337 401 95 3,834 475 1 ,064 18,901 4,720 8,804 1,056 706 3,390 153 20................... 48,882 30,150 19,271 387 1 ,711 3,776 528 1 ,062 18,732 4,724 8,696 996 673 3,418 153 27................... 49,339 30,597 19,421 443 1 ,668 3,881 538 1 ,018 18,742 4,742 8,741 956 669 3,414 147 Outside New York City 1966 Sept. 7........... 151,163 78,018 58,814 5,232 1,745 9,806 143 434 73,145 42,638 21,808 7,070 253 1,186 104 14................... 153,469 80,347 62,053 4,927 1,181 9,765 131 426 73,122 42,596 21,738 7,161 259 1,178 103 21................... 151,799 78,917 59,957 4,928 2,686 9,068 125 437 72,882 42,611 21 ,556 7,113 243 1,166 103 28................... 150,187 77,275 58,367 5,310 3,012 8,409 135 424 72,912 42,685 21,551 7,077 240 1,164 103 1967 Aug. 2................... 164,262 82,624 61,791 5,732 2,549 9,634 133 492 81,638 43,113 27,603 8,746 368 1,598 91 9................... 161,752 79,850 60,231 5,259 2,191 9,452 146 488 81,902 43,175 27,800 8,748 371 1,595 89 16.................. 163,514 81,418 62,313 5,011 1,685 9,705 134 487 82,096 43,183 27,995 8,698 379 1,619 96 23................... 160,790 78,397 60,174 4,801 1,978 8,946 134 487 82,393 43,206 28,212 8,725 381 1,637 108 30................... 161,514 78,860 60,473 5,137 1,756 8,936 129 474 82,654 43,235 28,387 8,778 383 1,634 111 Sept. 6................... 165,701 82,879 62,684 5,213 1,836 10,386 142 472 82,822 43,282 28.509 8,760 388 1,646 113 13................... 165,727 82,829 64,489 4,709 940 9,978 142 490 82,898 43,307 28,602 8,705 384 1,662 115 20.................. 166,449 83,767 63,298 4,784 3,350 9,654 139 494 82,682 43,385 28,391 8,615 383 1,672 117 27................... 165,363 82,446 62,023 5,222 3,685 8,965 137 487 82,917 43,607 28,433 8,586 388 1,666 118 For other notes see p. 1777. 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OCTOBER 1967 WEEKLY REPORTING BANKS 1777 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets— lia O b t i h li e ti r e s a C cc a o p u it n a t l s lia T b a o i n l t d i a t i l e s Total T lo o a t n a s l Demand La o rg f e d e c p er o ti s f i i t c 1 a 0 tes Wednesday F F r . o R m . o F t r h o e m rs a c c a c p o i u t n al t s l ( o n a e n t) s , ad ( j n u e s t t ) e , d, a d d e j p u o s s te it d s 9 Banks adjusted8 and in­ Total Issued Issued vestments8 issued to IPC’s to others Large banks— Total 1966 525 6,083 10,415 19,006 231,645 131,248 181,623 70,165 18,023 12,635 5,388 123 6,247 10,803 18,963 234,841 131,578 182,047 72,090 17,718 12,283 5,435 .....................‘...14 769 5,511 10,787 18,953 233,111 132,867 183,191 71,428 17,226 11,982 5,244 21 833 5,471 10,803 18,981 231,462 132,202 182,921 71,189 17,005 11,809 5,196 ..........................28 1967 475 6,216 11,190 20,020 251,091 137,270 195,538 74,348 20,118 12,821 7,297 214 6,199 11,617 20,041 247,609 136,365 194,057 72,598 20,314 12,949 7,365 .......................... 9 214 6,396 11,989 19,992 249,475 136,444 194,224 72,863 20,328 12,918 7,410 ...........................16 20 6,026 12,123 19,986 246,350 135,534 193,354 71,921 20,570 13,132 7,438 ...........................23 14 5,994 12,094 20,013 247,628 135,488 194,809 73,321 20,742 13,247 7,495 ...........................30 115 6,184 12,052 20,088 253,046 135,795 195,282 73,491 20,610 13,125 7,485 15 6,402 12,137 20,082 251,956 136,121 195,841 74,551 20,437 12,938 7,499 ..........................13 294 6,054 12,199 20,051 253,929 137,926 197,842 73,713 19,899 12,563 7,336 ...........................20 117 5,790 12,239 20,072 252,920 138,009 197,726 74,395 19,897 12,557 7,340 ...........................27 New York City 1966 48 2,367 5,228 5,112 57,208 32,419 42,245 15,885 6,972 5,014 1 ,958 8 2,330 5,314 5,107 57,995 32,585 42,568 16,548 6,755 4,826 1,929 .....................*...14 98 1,927 5,094 5,100 57,511 33,202 43,083 16,305 6,643 4,821 1,822 21 329 1,738 5,289 5,097 57,640 32,748 42,818 16,417 6,549 4,743 1,806 ...........................28 1967 182 1,862 5,391 5,479 61,842 34,461 45,162 17,334 ' 7,269 4,742 2,527 ' 16 1,888 5,764 5,485 60,939 33,917 44,394 16,333 7,355 4,796 2,559 .......................... 9 40 2,173 5,927 5,476 60,986 34,003 44,551 16,485 7,246 4,682 2,564 ...........................16 1,736 6,211 5,470 60,822 33,432 43,995 16,181 7,334 4,755 2,579 ...........................23 1,944 6,129 5,462 61,534 33,452 44,594 16,589 7,339 4,767 2,572 .........................30 1,854 6,044 5,483 62,287 33,543 44,857 16,795 7,195 4,634 2,561 2,019 6,079 5,483 61,174 33,321 44,702 17,007 7,058 4,473 2,585 .........................13 1,750 6,127 5,477 62,236 34,135 45,835 16,995 6,865 4,376 2,489 ............ 20 1,532 6,398 5,475 62,744 34,076 45,507 17,185 6,864 4,368 2,496 .........................27 Outside New York City 1966 477 3,716 5,187 13,894 174,437 98,829 139,378 54,280 11,051 7,621 3,430 .................Sept. 7 115 3,917 5,489 13,856 176,846 98,993 139,479 55,542 10,963 7,457 3,506 ...........................14 671 3,584 5,693 13,853 175,600 99,665 140,108 55,123 10,583 7,161 3,422 ...........................21 504 3,733 5,514 13,884 173,822 99,454 140,103 54,772 10,456 7,066 3,390 ...........................28 1967 293 4,354 5,799 14,541 189,249 102,809 150,376 57,014 ’ 12,849 8,079 4,770 ' 198 4,311 5,853 14,556 186,670 102,448 149,663 56,265 12,959 8,153 4,806 .......................... 9 174 4,223 6,062 14,516 188,489 102,441 149,673 56,378 13,082 8,236 4,846 ...........................16 20 4,290 5,912 14,516 185,528 102,102 149,359 55,740 13,236 8,377 4,859 ...........................23 14 4,050 5,965 14,551 186,094 102,036 150,215 56,732 13,403 8,480 4,923 ...........................30 115 4,330 6,008 14,605 190,759 102,252 150,425 56,696 13,415 8,491 4,924 15 4,383 6,058 14,599 190,782 102,807 151,139 57,544 13,379 8,465 4,914 ...........................13 294 4,304 6,072 14,574 191,693 103,790 152,007 56,718 13,034 8,187 4,847 ...........................20 117 4,258 5,841 14,597 190,176 103,933 152,219 57,210 13,033 8,189 4,844 ..........................27 1 After deduction of valuation reserves, 2 Individual items shown gross. 1 o 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 5 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 tn 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

1778 BUSINESS LOANS OF BANKS OCTOBER 1967 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1967 1967 1967 1967 1966 Industry Sept. Sept. Sept. Sept. Aug. Sept. Aug. July HI II 1 1st 2nd 27 20 13 6 30 half half Durable goods manufacturing: Primary metals............................ 1 ,191 1,188 1 ,224 1,214 1,123 68 -41 75 102 153 100 253 -135 Machinery..................................... 4,540 4,558 4,484 4,525 4,542 -2 -306 -72 -380 285 602 887 580 Transportation equipment............. 1 ,925 1 ,938 1,867 1,906 1 ,890 35 -42 -16 -23 -273 226 -47 474 Other fabricated metal products. . . 1 ,801 1 ,798 1 ,794 1 ,763 1 ,772 29 -103 -102 -176 266 143 409 -27 Other durable goods...................... 2,148 2,142 2,114 2,103 2,096 52 7 -49 10 118 57 175 84 Nondurable goods manufacturing: Food, liquor, and tobacco.......... 2,171 2,187 2,067 2,132 2,095 76 -28 -20 28 -105 -472 -577 575 2,134 2,145 2,192 2,181 2,172 -38 13 -25 86 211 297 -274 Petroleum refining......................... 1 ,460 1 ,443 1 ,396 1,373 1,378 82 -281 -8 -207 180 61 241 -254 Chemicals and rubber.................... 2,312 2,289 2,264 2,258 2,254 58 -73 -97 -112 1 308 309 133 Other nondurable goods................ 1 ,763 1 ,757 1,719 1 ,716 1 ,707 56 39 35 130 108 53 161 64 Mining, including crude petroleum and natural gas............................ 3,800 3,808 3,749 3,721 3,735 65 -225 -60 -220 1 194 195 182 Trade: Commodity dealers................ 1,104 1 ,085 1,086 I ,083 1 ,081 23 75 80 178 -334 -145 -479 334 Other wholesale...................... 2,897 2,888 2,867 2,855 2,883 14 -76 -2 -64 51 17 68 102 Retail...................................... 3,539 3,457 3,280 3,348 3,320 219 -126 -74 19 157 -184 -27 -47 Transportation, communication, and other public utilities.... Transportation................................ 4,074 4,039 3,983 3,950 3,959 115 -39 19 95 185 88 273 921 Communication............................ 990 996 1 ,001 1 ,005 999 ~9 -8 12 -5 157 66 223 n.a. Other public utilities...................... 2,306 2,252 2,146 2,169 2,169 137 -103 114 148 212 -321 -109 n.a. Construction....................................... 2,573 2,583 2,596 2,562 2,569 4 -52 7 -41 117 -107 10 -173 Services...................................... 4,701 4,723 4,718 4,702 4,702 -1 -33 -40 -74 89 -142 -53 n.a. All other domestic loans.................... 6,435 6,412 6,364 6,326 6,366 69 -105 144 108 273 285 558 -53 Bankers’ acceptances.......................... 902 852 815 811 825 77 69 107 253 -122 236 114 64 Foreign commercial and industrial loans............................................ 2,754 2,745 2,741 2,757 2,751 3 8 -109 -98 -113 93 -20 n.a. Total classified loans.......................... 57,520 57,285 56,467 56,460 56,388 1,132 -1,430 -56 -354 1,492 1,369 2,861 2,550 Total commercial and industrial loans 63,372 63,149 62,285 62,238 62,189 1,200 -1,519 -76 -395 1,822 1 ,215 3,037 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 70 per cent of those held by ail commercial banks. BANK RATES ON SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100^99 500-999 an 1 d , 0 o 0 v 0 e r Interest rate (per cent per annum) Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 Percentage distribution of dollar amount Less than 5.50..............,..,.... 1.5 2.1 1.0 0,7 0.7 0.6 1.2 1.0 2.7 2.8 1.6 2.7 5.50............................................ 33.0 32.1 1.3 1.4 4.8 4.6 17.0 16.6 26.6 27.9 51.7 46.5 5.51-5.75.................................... 19.4 21.4 3.0 1.9 6.3 5.9 19.2 19.6 28.6 29.3 20,7 24.1 5.76-6.00.................................... 15.4 14.0 14.9 14.5 19.1 19.0 17.7 19.0 16.3 13.7 13.0 10,7 6.01-6,49.................................... 10.9 11.2 25.7 25.9 24.1 24.0 15.7 15.4 9.2 10,5 4.9 6.4 6.50............................................ 5.7 5.5 10.2 10,2 10.6 10.5 7.8 6.9 6.5 4.4 3.0 3.9 6.51-6.99..................................... 4.9 4.8 13.9 14.0 12.1 11.8 6.5 6.7 4.2 3.4 2.1 2.5 7.00............................................ 3.3 3.8 10.6 10.6 7.9 8.8 6.0 6.2 2.3 3.1 0.8 1.6 Over 7.00................................... 5.8 5.4 19.5 20,8 14.5 14.8 8.9 8.5 3.6 4.9 2.2 1.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.0 100.0 100,0 Total loans: Dollars (millions)............... 3,880.7 4,441.0 61.6 63.6 491.6 500.8 923.2 991.8 566,6 576.6 1,837,7 2,308.1 Number (thousands).............. 38.9 40.3 16.1 16.8 16,3 16.4 4.8 5.2 .9 1.0 .8 1.0 Center Weighted average rates (per cent per annum) 35 centers................................... 5.94 5.95 6.58 6.61 6.46 6.48 6.16 6.16 5.88 5.88 5.72 5.73 New York City.............. 5.67 5.67 6.33 6.41 6,25 6.28 5.88 5.88 5.69 5.66 5.58 5.59 7 Other Northeast.................. 6.30 6.32 6,61 6.61 6.70 6.70 6.42 6.48 6.08 6.10 5,99 6.00 8 North Central............. 5.92 5.91 6,65 6.64 6.41 6.44 6.15 6,13 5.89 5,89 5.76 5.75 7 Southeast............................. 5.93 5.94 6,37 6.44 6.18 6.22 5.97 5.95 5.78 5,71 5.67 5.74 8 Southwest...................... 6.01 6.04 6,54 6.63 6.32 6.37 6.10 6.12 5.95 5.97 5.78 5.81 4 West Coast......................... 6.05 6.08 7,12 7.14 6.84 6.86 6.38 6.32 5.95 6.03 5.72 5.78 Note,—Beginning Feb, 1967 the Quarterly Survey of Interest Rates on I960—Aug. 23 4</i 1967—Jan. 26-27 5'/2-5% Business Loans was revised. For description of revised series see pp. 721­ 1965—Dec. 6 5 Mar. 27 5H 27 of the May Bulletin. 1966—Mar. 10 5'/2 Bank prime rate was 5 per cent during the period Jan. 1, 1960-Aug. June 29 S’/4 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

OCTOBER 1967 INTEREST RATES 1779 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period p c a o p m e l r . , p p l a a p ce e d r b a a c n c k e e p rs t­ * F f e u d n e d r s a l 3-month bills 5 6-month bills 5 9- to 12-month issues 3- y t c o a r 5 - 4- to 6- directly, ances, rate 3 issues 7 months 1 m 3- o n to th 6 s - 2 90 days 1 n R ew at e is o su n e M y a ie r l k d et n R ew at e i s o su n e M y a ie r l k d et B k i e ll t s y ( i m el a d r ) ­ 5 Other 6 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—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 May................ 4.67 4.41 4.27 3.94 3.640 3.60 3.808 3.80 3.88 4.09 4,68 June................ 4.65 4.40 4.40 3.98 3.480 3.53 3.816 3.88 4. 16 4.40 4.96 July................. 4.92 4.70 4.58 3,79 4.308 4.20 4.798 4.72 4.90 4.98 5.17 Aug................ 5.00 4.75 4.77 r3.89 4.275 4,26 4.821 4.82 5.04 5.10 5.28 Sept.......... 5.00 4.77 4.76 4.00 4.451 4.42 4.964 4.96 5.10 5,21 5.40 Week ending— 1967—Sept. 2......... 5.00 4.75 4.75 3.59 4.490 4.41 4.995 4.86 5,05 5.14 5.33 ' 9 5.00 4,75 4.66 4.02 4.324 4.31 4.765 4.82 5,05 5.13 5.32 16 5.00 4.75 4.68 3.98 4.360 4.37 4.951 4.93 5.06 5.16 5.39 23 5.00 4.75 4.80 4.00 4.490 4.54 4.998 5.04 5.15 5.27 5.44 30.......... 5.00 4.83 4.88 4.00 4.629 4.47 5.143 5.05 5.14 5.30 5.45 1 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 States (long­ Total! term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 1964.................................... 4.15 3.28 3 09 3.54 4 57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965........................................... 4,21 3.34 3.16 3.57 4,64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966.......................................... 4.66 3.90 3 67 4.21 5 34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1966—Sept.................................. 4.79 4.18 3 93 4 48 5,71 5.49 6.09 5.71 5.65 5.78 5.23 3.75 7.18 Oct.................. 4,70 4 09 3 82 4’42 5.67 5.41 6.10 5.63 5.67 5,72 5.28 3.76 Nov................................ 4,74 4.01 378 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 Feb................................. 4 47 3.62 3.38 390 5.35 5.03 5.82 5.33 5.48 5.25 4.98 3.36 Mar........................ 4.45 3.63 3.48 3 86 5 43 5.13 5.85 5.39 5.51 5.37 5.04 3.29 5.60 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 May...................... 4,76 3.94 3.71 4,23 5.56 5.24 5.96 5.46 5.62 5.59 5.17 3.19 June................................ 4.86 4,02 3.80 4.31 5.75 5.44 6.15 5.64 5.80 5.80 5,30 3.19 5.85 July................................... 4 86 4 11 3.86 4 43 5.86 5 58 6.26 5.79 5.88 5.91 5.34 3.15 Aug................................. 4 95 4.07 3.78 437 5.91 5.62 6.33 5.84 5.94 5.96 5.35 3.11 Sept............................... 4.99 4.14 3.81 4.39 6.00 5,65 6.40 5.93 6.03 6.02 5.41 3.07 Week ending— 1967—Sept 2............................ 4.96 4.10 3 80 4 39 5.96 5.68 6.35 5.87 6.02 6.00 5.37 3.16 9 .......................... 4.93 4. io 3 80 4.39 5.98 5.66 6.38 5.89 6.02 6.03 5,38 3.11 16 ........................ 4.96 4.10 3 80 4 39 5.99 5.65 6.41 5.94 6.00 6.03 5.40 3.06 23............................ 5.01 4.16 382 4.51 5,99 5.64 6.38 5.95 6.03 6,01 5.43 3.06 30............................ 5.04 4.21 3.83 4.61 6,01 5.66 6.41 5.96 6.07 6.02 5.43 3.03 ................. Number of issues.................... 10-11 20 5 5 120 30 30 40 40 40 t4 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 heal govt, bonds; General obligations only, based on adjusted at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1780 SECURITY MARKETS OCTOBER 1967 MORTGAGES: NEW AND EXISTING HOMES SECURITY PRICES (Per cent) Contract interest rate on (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 k 10 ) prices V um ol e ­ 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 i i e o 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 l a o t n c a d a te l A C p a A o o te r r A ­ ­ Total d t I r u n ia s ­ l ­ R ro a a i d l­ P u i l u t t i i y c b l ­ ­ ( s t t h r h i a a n o d o r g u e ­ f 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 86.1 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—Sept.. 77.15 98.5 82.6 77.81 83.11 40.31 63.11 5,722 1964................ 5.45 5.80 5.85 5.78 5.92 Oct.,. 78,07 100.5 83.5 77.13 82.01 39.44 65.41 6,971 1965................ 5.47 5.83 5.89 5 76 5.89 Nov.., 77,68 101.0 83.5 80.99 86.(0 41,57 68.82 7,297 1966................. 6.38 6.40 6.47 6.11 6.24 Dec... 78,73 102.4 83.0 81.33 86,50 41.44 68.86 7,883 1967—Jan... 81.54 106.0 85.9 84,45 89.88 44.48 70.63 9.885 1966—Aug....... 6.58 6.55 6.65 6.28 6.37 Feb... 80.73 106,4 86.4 87.36 93.35 46. 13 70.45 9,788 Sept....... 6.63 6.65 6.70 6.30 6.45 Mar. . 80.96 105.8 85.6 89.42 95,86 46.78 70,03 10,217 Oct..... 6.70 6,75 6,39 6,50 Apr. . 80.24 104,9 85.4 90.96 97,54 45.80 71.70 9,389 Nov....... 6.81 6.70 6.75 6.45 6.54 May.. 77,48 101.1 83.4 92.59 99.59 47.00 70.70 9,933 Dec....... 6.77 6.65 6.70 6.49 6.55 June, . 76,37 100.2 81.7 91.43 98.61 48.19 67.39 9,666 July ,. 76.39 99.3 81.1 93.01 100.38 49.91 67.77 10,834 Aug .. 75.38 99.6 80.3 94.49 102,11 50.43 68.03 9,037 1967—Jan........ 6.62 6.60 6.65 6.47 6.54 Sept.. 75.04 98.0 80.0 95.81 103.89 49.27 67.45 10,251 Feb........ 6.46 6.50 6.55 6.44 6.50 Mar....... 6.35 6.45 6.50 6.41 6.44 Week Apr....... 6.29 6.40 6.45 6.37 6,36 ending— May.. . . 6.44 6.45 6.50 6.28 6.31 June.... 6.51 6.50 6.50 6.29 6.30 1967 July. . . . 6.53 6.50 6.55 6.34 6.33 Aug....... 6.60 6.55 6.55 6.34 6.37 Sept. 2....... 75.27 98.6 79,5 93,18 100.64 49.88 67.40 7,228 Sept....... 6.63 6.55 6.60 9....... 75.66 98.6 80.0 94.32 101.95 50,19 67.75 9,019 16..... 75,30 98.4 80.1 95.60 103.53 49,39 67.79 10,803 23 74.80 97.8 80.0 96.52 104,71 49.13 67,39 11,323 1 New FHLBB series. 30....... .74.46 97.1 79.8 96.98 105.31 48.37 66,88 10,172 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices Note.—Annual data are averages of monthly figures. Monthly and weekly on prevailing conditions in their localities as of the first of the data are averages of daily figures unless otherwise noted and are computed as succeeding month. The yields are derived from weighted aver­ follows: U.S. Govt, bonds, derived from average market yields in table at bottom of ages of private secondary market prices for Sec. 203, 30-year preceding page on basis of an assumed 3 per cent, 20-year bond. Municipal and mortgages with minimum downpayments and an assumed pre­ corporate bonds, derived from average yields as computed by Standard and Poor’s payment at the end of 15 years. Gaps in the data are due to Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common periods of adjustment to changes in maximum permissible con­ stocks. Standard and Poor’s index. Volume of trading, average daily trading in tract interest rates. The FHA series on average interest rates stocks on the N.Y. Stock Exchange for a SVi-hour trading day. on conventional first mortgages are unweighted and are rounded to the nearest 5 basis points. For FHLBB series, see footnote to table on Conventional First Mortgages, p. 1797. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans to others than Month Total N. f Y irm , s S t s o e c c k u re E d x c b h y a — nge bro c k h e a rs s in an g d o d r e c a a l r e r r y s i n fo g r — pur­ Money borrowed on— to C n m u e e s t ­ rs' o s t e h c e u r r i t t h ie a s n Other securities c f r r e e d e i t U.S. Govt. 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 . v S it t . i es 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 l t a o te m ra e l r co O ll t a h te e r r a l a b n a c l e ­ 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—-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 5,290 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 Apr....... 7,969 77 5,819 68 2,150 n.a. n.a. n.a. n.a. 2,078 May.... 8,085 40 5,926 68 2,159 n.a. n.a. n.a. n.a. 2,220 June.,.. 8,333 29 6,166 70 2,167 n.a. n.a. n.a. n.a. 2,231 July....... '8,800 33 6,602 76 2,197 n.a. n.a. n.a. n.a. 2.341 Aug....... 8,898 35 6,642 77 2,256 n.a. n.a. n.a. n.a. 2,281 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

OCTOBER 1967 OPEN MARKET PAPER; SAVINGS INSTITUTIONS 1781 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Held by— Based on—• End of period Accepting banks F.R. Goods stored in or Total t P hr la o c u e g d h P d l i a re c c e t d ­ Total Banks Others p i I o n m t r o t ­ s f p r E o o x r m t ­ s Do e l x la ­ r shi p p o p i e n d t s b i e n t — ween dealers 1 ly 2 Total O bi w ll n s bo B u il g ls h t a O c w ct n . c e F o i o g r n r r. ­ U St n a i t t e e s d U S n ta it t e e d s change U St n a i t t e e s d c F o o u r n e t i r g i n es 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 I 334 485 969 117 293 819 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 I '301 370 94 122 1,498 667 999 III 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—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 2J45 957 760 62 60 1331 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............ 14,718 3,449 11,269 3,601 1,359 1 ,028 331 73 173 1,996 936 829 78 90 I 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 1,077 290 110 232 1,996 962 921 60 71 1 691 Apr.. 16,249 4,356 11,893 3’830 1'356 1'128 229 166 272 2,035 971 971 55 59 1,773 May......... 17,067 4,713 12,354 3,964 1,339 1,147 192 70 348 2,207 949 998 38 46 1'933 June 16,150 4,934 11,216 4,131 1,361 1,191 170 136 379 2,254 1 ,001 1 ,007 45 39 2,038 July........... 17,044 4,976 12,’068 4 J (6 I,'549 (,'252 297 136 379 2,052 974 1 ,’040 65 41 1,996 Aug........... 16316 4,979 11',837 4,103 I ,584 1,195 389 78 324 2,118 1,020 989 70 75 1,949 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— Other l T ia o b t i a l l i ­ Depos­ Other G re e se n r e v r e a l c M om or m tg i a tm ge e n lo ts a n 3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t p d e o ­ Cash assets ge a t n i n e e d s ra l its 2 lia ti b e i s li­ co a u c n ­ ts govt. other 1 reserve accts. NumberAmount 1941............................ 4,787 89 3,592 1 /86 829 689 11,772 10,503 38 1,231 1945 ............................ 4302 62 10,650 1 .257 606 185 16’962 15'332 48 1 382 I960............................ 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961............................ 28302 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 49,702 943 4,153 104,326 2,549 1964............................ 40'328 739 5,791 391 5,099 1,004 886 54,238 48349 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 120376 2'697 1966—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 54373 1 338 4,823 99’377 2'191 Oct............... 46,736 1 '023 4,913 260 5,588 833 1 '037 60’390 54’ 178 1 300 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 1 378 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 jl 36 4,645 246 6,480 1,140 1 ,081 62,701 56,538 1,249 4,914 91,125 172 Apr.................. 48,236 1 '075 4,481 243 6,803 1,069 1 ,076 62,982 56,739 1 381 4,863 88’295 2'242 May............. 48,493 1,261 4,433 235 7,062 1,095 1 ,'074 63,654 57,185 I 346 4,923 92 3 54 2395 June................. 48,771 1,226 4,336 249 7,313 1,140 1,108 64,143 57,836 1,379 4,929 95,187 2,657 July............. 49310 1 J 44 4,396 246 7342 I ,084 1’116 64’639 58'169 1'563 4,908 91,559 2,647 Aug.................. 49;322 1,210 4', 367 242 7,910 1,034 1 J17 65,201 58^99 1 ,732 4,969 n.a. 2',592 t 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. 1767. 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

1782 SAVINGS INSTITUTIONS OCTOBER 1967 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total United State and Foreign 1 Total Bonds Stocks gages estate loans assets States local Statement value: 1941....................................... 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945.................................... 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 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: 1964—Dec............................. 149,470 12,343 5,594 3,785 2,964 62,112 55,735 6,377 55,197 4,534 7,141 8,143 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—July’'.......................... 163,371 10,972 4,805 3,232 2,935 68,010 60,595 7,415 62,921 4,781 8,276 8,411 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 2,89! 69,373 61,795 7,578 65.503 4.890 9,341 9,033 Mar............................ 169,865 10,738 4,789 3,053 2,896 69,878 62,071 7,807 65,798 4,925 9,444 9,082 Apr............................ 170,570 10,622 4,700 3,026 2,896 70,271 62,360 7,911 66,024 4,940 9,537 9,176 May.......................... 171,238 10,655 4,746 3,015 2,894 70,610 62,607 8,003 66,253 4,952 9,615 9,153 June........................... 171,881 10,487 4,620 2,994 2,873 71,108 62,990 8,118 66,414 4,987 9,695 9,190 July............................ 173,129 10,516 4,605 3,001 2,910 72,194 63,856 8,338 66,324 5,026 9,735 9,334 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 E pe n r d i o o d f M ga o ge rt s ­ s G e U c o . u v S r t . i , ­ Cash Other1 a li s a T s b e o i t l t s i a t 2 i l — es S c a a v p i i n ta g l s u R n e d a s i n e v r d i v d e e s d B m or o r n ow ey e 3 d L p o r a o n c s e s i s n Other c m o l m e o n a m t n s i 4 t­ ties profits 1941 4,578 107 344 775 6,049 4,682 475 256 1945 5,376 2,420 450 356 8,747 7,365 644 336 402 1960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68’834 5,211 3,315 4,775 82,135 70,885 5 708 2 856 1 550 1,136 1 908 1962 78,770 5 563 3,926 5*346 93 605 80,236 6 520 3,629 1 999 1,221 2 230 1963 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5 015 2,528 1,499 2,614 1964 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2’590 1965. 110^306 7 414 3 900 7 960 129 580 110385 8 704 6,444 2 198 1 849 2 751 1966-—'Aug......... 114,002 7,361 2,717 8,487 132,567 111,089 9,899 7,752 1,826 2,901 2,082 Sept......... 114,107 7’482 2'631 8,648 132,768 111 720 9 008 7 701 1,656 2 683 1 869 Oct........... 114,102 7,634 2,682 8 608 133 026 111 664 9 015 7 753 1 509 3 085 1718 Nov...... 114^081 7,935 2,856 8,843 133,715 112,278 9,009 7,570 1,364 3 394 I ’626 Dec...... 114'192 7^772 3’361 8’672 133 997 114010 9,256 7,464 1 272 1 '995 1 512 1967-—Jan....... 114,229 7,883 3,170 8,442 133,724 114,194 9 084 6,708 1,189 2,549 1,661 Feb.......... 114'395 8’079 3,364 8’554 134,392 114,957 9,073 6,107 1,217 3,038 1,925 Mar......... 114'797 8,058 3,544 8,754 135’153 116,414 9,064 5,441 1'365 2,869 2,269 Apr.. .... 115,233 7’950 3’638 8,936 135'757 116'911 9,062 5,027 1,503 3,254 2,699 May..... 115’909 8,072 3,859 9,376 137,216 118,041 9,055 4,630 1,710 3,780 3,081 June........ 116,944 7,987 3,997 9,232 138,160 119,976 9,268 4,559 1,918 2.439 3,250 July...... 117,676 8,378 3,412 9,169 138,635 120,031 9,270 4,456 2,019 2,859 3 420 Aug......... 118,659 8,768 3,149 9,252 139,828 120,677 9,269 4,391 2,131 3,360 3,428 1 Includes other loans, stock in the Federal home loan banks, other 4Commitments 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

OCTOBER 1967 FEDERALLY SPONSORED CREDIT AGENCIES 1783 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home Ioan banks (s F e M e c d o o e n r r t d g a a l a r g N y e a m A ti a o s r s n k n a e , l t B f a o n r k s int F er e m de e r d a i l a te Fe la d n e d ra l Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m b a A t n e e o d m r c s ­ e ­ s I m nv en es ts t­ p C a o d a n s e s i d ­ h t s B n a o o n t n d e d s s p M o b d e s e e m i ­ r t s ­ C s a to p c it k al M I g o ( a A a o g n r ) e t s ­ D n t a e u ( o L n b r t e d e e ) s s n ­ c L a o t ( o o t i A v o a p e ) n e s s r ­ D t e u (L b re ) e s n­ c L o a d ( o u A n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e s t ­ B ( o 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............. 2,134 1,093 103 1,774 589 866 L967 1,640 622 364 1,391 1,356 2,360 U986 1960............. 1,981 1,233 90 t ,266 938 989 2,788 2,523 649 407 t ,501 1,454 2,564 2,210 1961............. 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962............. 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963........... 4,784 1,906 159 4,363 1’151 1,171 2,000 1’788 840 589 2,099 1,952 3,3(0 2,834 1964............ 5,325 1,523 141 4,369 1 , 199 1 ,'227 1,940 1,601 958 686 2,247 2,112 3,718 3,169 1955............. 5,997 1 '640 129 5,221 I ,045 1 ,277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966—Aug... 7,226 1,623 76 6,615 7U 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 2,523 113 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 I ,24! 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 Apr... 4,782 3,451 77 5,066 1,648 1,388 4,459 4,006 1 ,337 1,114 3,301 3,086 5,175 4,450 May.. 4,421 4,004 93 5,050 1,831 i ,392 4,455 3,938 1 ,316 1,101 3,423 3,186 5,248 4,61 I June.. 4,302 3,738 95 4,577 1 ,927 1,392 4,450 4,078 1,296 1 ,042 3,545 3,297 5,303 4,61 1 July. . 4,221 3,420 81 4,585 1,522 1 ,392 4,507 Li, 469 1 ,335 1 ,072 3,639 3,419 5,358 4,644 Aug... 4,153 3,160 73 4,395 1,344 1 ,392 3,137 4,049 1,368 785 3,696 3,465 5,404 4,787 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, AUGUST 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. Bonds: Association—Cont. Bonds: Sept. 15, 1967.......................4'4 185 Debentures: Oct. 23, 1967....................4% 174 Sept. 27, 1967.......................6% 650 June 12, 1973.....................4(4 146 Oct. 23 1967....................5% 150 Oct. 26, 1967..........................6 700 Feb. 10, 1977....................434 198 Dec. 20, 1967....................5% 329 Nov. 27, 1967...........................6 500 Jan. 22, 1968.....................5'/s 161 Jan. 25, 1968.......................5’4 250 Mar. 20, 1968.....................4 34 111 Feb. 26, 1968.....................5.35 535 May 20, 1968.....................514 242 Mar. I. 1968......................4% 250 June 20, 1968.....................4 186 Mar. 25, 1968.....................5.35 400 Banks for cooperatives Aug, 20, 1968.....................4'4 160 Apr. 25, 1968.......................5% 625 Debentures: Oct. 21, 1968...................5.50 407 Mar. 25, 1969......................5% 300 Oct. 2,1967......................4.50 ’250 Jan. 20,1969.....................4% 341 Nov. 1, 1967...................4.30 258 Mar. 20, 1969.....................4% 100 Dec. 4, 1967...................4.30 276 Apr. 21, 1969...................5.60 250 July 15,1969..................4’4 130 Federal National Mortgage Associa- July 15, 1969.....................4% 60 tion—Secondary market opera- Oct. 20, 1969.....................414 209 tions Feb. 20, 1970.....................5% 82 Federal intermediate credit banks Apr. 1, 1970.....................3& 83 912 Debentures: July 20, 1970.....................5 34 85 Sept. 5, 1967...................6.05 329 May I, t971.....................314 60 Oct. 2, 1967...................5.60 377 Sept. 15, 1972.....................3’/s 109 Debentures: Nov. 1,1967..................5.15 476 Feb. 20, 1973-78...............4H 148 Oct. 11,1967......................414 150 Dec. 4, 1967.....................514 404 Feb. 20, 1974.....................4’4 155 Mar. 11, 1968......................3% 87 Jan. 2, 1968...................4.45 413 Apr. 21, 1975.....................4% 200 June 14, 1968.................... 434 400 Feb. 1,1968..................4.40 397 Feb. 24, 1976.....................5 123 Sept. 10, 1968.......................5% 350 Mar. 4, 1968...................4.50 375 July 20, 1976,...........5% 150 Apr. 10, 1969...................41Ho 88 Apr. 1, 1968.....................4.85 347 Apr. 20, 1978.....................5% 150 May 12, 1969......................434 300 May 1, 1968.......................514 345 Jan. 22,1979.....................5 285 July 10, 1969......................5% 250 Dec. 12, 1969......................6 550 Tennessee Valley Authority Apr. 10, 1970.......................4% 142 Short-term notes......................... 200 Sept. 10, 1970......................4’/a 119 Bonds: Aug. 10, 1971......................434 64 Federal land banks Nov. 15, 1985..................4.40 50 Sept. 10, 1971......................434 96 Bonds: July J, 1986....................4?4 50 Feb. 10, 1972......................5% 98 Feb. 15, 1967-72...............4*4 72 Feb. 1, 1987....................4«/2 45 June 12, 1972......................4% 100 Oct. 1, 1967-70...............434 75 May 15, 1992...................5.70 70 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

1784 FEDERAL FINANCE OCTOBER 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. or Change Less: 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 . : ­ i E r T e q o e u l t a s a l . l s 2 : Budget f T P u l n r u u d s s s : t 3 A m L d e e j n s u t s s s : t 4 ­ E p T q a o u y t a t a s ls l . : payts. (d d i e i r n b e c t t a I g n e v b n e y . s t & , L N ca e o s s n h s: ­ Eq N u e a t ls: & agen.) trusts debt 88,696 30,742 4,324 115,030 96,944 28,396 5,069 120,271 -5,241 9,084 2,684 619 5,780 ’ 1965........... 96 ,'679 31,384 4 >49 123,376 101,379 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—1964......... 89,459 30,331 4,190 115,530 97,684 28,885 6,237 120.332 -4.802 7,733 2,775 1,099 3,859 1965......... 93,072 31,047 4,303 119,699 96,507 29,637 3,749 122,395 -2,696 6,933 2,356 250 4,328 1966......... 104.727 34,853 4,451 134,480 106,978 34,864 4,026 137,817 -3.337 6,710 3,562 530 2,618 1967?’........ 115,794 44,632 6,056 153,533 125,732 34,493 4,929 155,296 -1,763 6,742 10,851 -314 -3,795 Half year: 1965—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 1967—Jan.-June’’.... 66,609 25,322 3,643 87,852 61,669 16,866 3,324 75,21) 12,641 -4,300 7,481 -527 -11,254 Month: 1966—Aug............. 7,197 4,973 330 11,764 11,042 2,627 -1,537 15,206 -3,442 5,611 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 10,977 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 11,852 456 515 1,649 59 -1,194 Mar................ 11,395 3,543 364 14,490 11,699 2,677 1,208 13,167 1,323 859 1,082 -127 -96 Apr................ 13,534 3,850 233 17,070 9,464 2,789 1,063 11,189 5,881 -3,708 -329 -77 -3,302 May............... 6,289 5.367 303 11,295 10,915 2,897 -634 14,445 -3,150 3,372 4,213 -25 -816 June? 18,249 5,254 1 ,982 21,438 10,145 3,426 655 12,916 8,522 -4,963 1,343 -HO -6.197 July................. 6,371 3,029 424 8,938 11,502 3,660 624 14,538 -5,600 4,690 -465 -155 5,310 Aug................ 7,301 4,995 459 11,766 12,730 3,472 -123 16,325 -4,559 5,147 1 ,723 76 3,348 Effects of operations on Treasurer’s account Net operating transactions Net financing transactions ca C sh h a b n a g la e n i c n e s Tre (e a n s d u r o er f ’ s p e a r c i c o o d u ) nt Period Agencies & trusts Change Operating bal. s B d u e u r o f d p i r g c l u i e t s t f T u r n u d s s t 3 a C c l c e o a u ri n n t g s i M s s su e a o a r c f k n . 3 e c t e i I n G n s e v o U c e v . s . t S 3 t , , . p d g d u i r i r e b o n e b l s c i t s c t T o r u H e t a e s s l i u d d r e y a T c u c r r e o e a r u ’ s n s ­ t Balance B F a . n R k . s a l T a c o n c a a d t x n s . O as n t s h e e t e t s r Fiscal year—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 1,249 1966........ -2,251 -12 -956 4,077 -3,562 2,633 132 -203 12,407 766 10,050 1 ,591 1967?.. -9,938 10,139 -813 428 -10,851 6,314 -73 -4,648 7,759 1,311 4,272 2,176 Half year: 1965—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 -11 1 3,481 -5>26 -997 660 5,825 12,407 766 10,050 1>91 July-Dec........ -14,878 1,683 -1,021 1,630 —3,370 9,412 -149 -6,396 6,011 416 4,096 1,499 1967—Jan.-June?.... 4>40 8>56 '208 -1,202 -7,481 -3>98 76 1,748 7,759 1,311 4,272 2; 176 Month: 1966—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>15 1 >35 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 >18 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 4,070 1,061 907 -563 329 -3,145 595 2'064 8,884 1,360 5,415 2,109 May......... -4,'626 2,471 -912 285 -4,213 3,087 -649 -3,259 5 >26 574 3,469 1 ,’583 June?.. 8,104 1,828 -1,217 —296 - 1,343 -4'667 275 2'133 7'759 1,3U 4'272 2,176 July.............. -5'131 -631 '355 274 465 4,416 -44 -208 7 >51 1,340 4,552 1 >59 Aug................ -5>28 1,523 -658 -66 -1,723 5,213 -196 -944 6,607 1,051 3,937 1,619 1 Primarily interest payments by Treasury to trust accounts and accumu­ 6 Seasonally adjusted data include accelerated corporate tax payments lations to U.S. employee trust funds. in 1966; data for 1966 also include adjustments for initiation of graduated 2 Includes small adjustments not shown separately. withholding of personal income taxes and change in schedule for deposit­ 3 Includes net transactions of Govt.-sponsored enterprises. ing withheld and OASI taxes. 4 Primarily (1) intragovt, transactions, (2) noncash debt, (3) clearing accounts. Note.—Based on Treasury Dept, and Bureau of the Budget data. 5 Includes technical adjustments not allocated by functions. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FEDERAL FINANCE 1785 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts front the public Income taxes Excise taxes Social ins. taxes Period Estate I nt. Total W I i n th d ­ ividual Co ra 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 . a g n if d t t C o u m s s ­ r m e a p e n a n d y t s ­ fu R n e d ­ s Other held Other Fiscal year—4964... 115,530 39,259 15,33! 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 t ,81 1 2,303 7,256 3,472 1967*.. 153,533 50,47718,848 34,915 14,130 n.a. 4,652 32,854 28,695 3,656 3,001 1,972 2,721 9,581 4,196 Half year: 1965—July-Dec... 55,024 19,964 3,806 10,892 7,046 3,063 2,068 9,60) 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 13,789 11,969 1,569 1 ,258 1,017 1 ,493 1,142 1,835 J 967—Jan.-Junep. 87,852 25,83614,865 22,870 7,368 n.a. 2,339 19,065 16,726 2,087 1,743 955 1,228 8,439 2,361 Month: 1966—Aug..... 11,764 5,095 173 606 1,249 539 530 3,999 3,185 770 224 179 174 198 263 Sept.......... 14,748 3,792 2,608 4,547 1,156 550 354 1,894 1,806 46 214 170 191 158 334 Oct........... 7,523 3.434 277 797 1,065 564 341 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 (.761 1,673 52 204 161 536 168 387 1967—Jan............ 11,251 3,674 3,075 823 1,147 496 340 1,808 1,615 146 269 160 219 U5 191 Feb........... 12,308 5,268 944 635 1 ,075 433 367 4,164 3,301 820 224 134 187 550 227 Mar.......... 14,490 4,157 859 6,728 1,539 448 603 2,473 2,366 61 270 170 (78 2,204 320 Apr........... 17,070 3,591 6,216 4,295 1 ,023 476 326 3,340 3,168 138 352 150 227 2,322 198 May...... 11,295 4,987 701 1,065 t ,274 591 355 4,587 3,669 874 445 166 207 2,392 255 June*....... 21,438 4,160 3,070 9,324 1,309 n.a. 348 2,697 2,610 49 182 176 211 847 1,156 July........... 8,938 3,843 264 946 1,241 n.a. 369 2,129 1 ,977 104 207 160 197 26 ( 212 Aug........... 11,766 5,164 211 642 1,125 n.a. 463 3,981 3,319 620 308 178 189 257 225 Cash payments to the public Period Total s t f i e N d o n e n a s ­ a e ­ l af I f n a t i i r , s s S e p r a e a r ­ c c h e A t c u g u r r l e ­ i­ so N u u r r r e a c a ­ t e l ­ s t m C ra a o e n n r m s d c p e ­ . c H d i o n e o m g v u e m & s f. ­ , l H a w b e e o a lf r l a , t r h e & , E t d i u o c n a­ e V ra e n t­ s In e t s e t r­ G g e o r e a v n l t . ­ Fiscal year—1964....... 120,332 54,514 3,837 4,171 5,416 2,774 6,545 1,674 27,191 1,299 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 1967P . . s 155,296 71,726 4,454 5,426 4,203 3,528 7,197 -1,804 38,997 3,291 7,012 10,373 2,643 Half year: 1965—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 2,235 3,094 803 1,464 2,829 2,271 16,873 2,072 2,968 4,856 1,146 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 1967—Jan.-June*... 75,210 37,879 1,997 2,570 568 1,525 2,825 -3,603 20,809 1,534 3,541 5,744 1,262 Month: 1966—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 5,532 637 493 583 323 763 362 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 Apr............. 11,189 6,388 370 380 -19t 224 336 -667 3,406 14 531 650 199 May............ 14,445 6,293 335 441 499 283 560 -534 3,522 496 614 1,752 239 June* 12,916 6,169 423 427 -192 265 392 -195 3,402 297 497 703 233 July............... 14,538 6,440 468 351 648 349 716 524 3,731 229 585 222 270 Aug.............. 16,325 6,864 374 410 945 387 862 326 3,583 328 592 1,516 198 1965 1966 1967 1965 1966 1967 Item III IV I II III IV I IP III IV I II III IV I ID Seasonally adjusted Not seasonally adjusted Cash budget: Receipts......................... 30.6 30.7 33.7 639.6 36.3 36.8 38.8 41.4 29.2 25.8 33.3 46.2 34.6 31.1 38.0 49.8 Payments.......................... 32.1 33.1 36.9 36.0 40.0 37.8 39.1 38.3 33.1 34.0 34.6 36.2 41.3 38.8 36.7 38.6 Net................................. -1.5 -2.4 -3.2 3.7 -3.7 -1.0 -.3 3.1 -3.9 -8.1 -1.3 10.0 -6.7 -7.7 1.4 11.3 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1786 U.S. GOVERNMENT SECURITIES OCTOBER 1967 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 End of period d T g e r o b o t t s a s l 1 d d T g e i r o r b o e t t s a c s l t 2 Total Marketable C ve o r n t­ ­ Nonmarke S ta a b v l ­ e i S s p su ec e i s a l 6 Total Bills C c e a r t t e if s i­ Notes Bonds 4 bo ib n l d e s Total s & b i o n n n o g d t s e s s [941—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 1 290 1959—Dec................................. 290.9 290.8 244,2 188.3 39 6 19 7 44 2 84 8 7 1 48 9 48.2 43 5 1960—Dec................................... 290.4 290.2 242 5 189.0 39.4 18*4 51 3 79'8 5 7 47 8 47.2 44.3 1961—Dec................................... 296.5 296.2 249.2 196.0 43.4 55 71.5 75.5 4^6 48 6 47 5 43.5 1962—Dec.................................. 304.0 303.5 255.8 203.0 48.3 22.7 53 7 78.4 4.0 48 8 47 5 43.4 1963—Dec.................................. 310.1 309.3 261,6 207.6 51.5 10 9 58.7 86,4 3.2 50 7 48 8 43.7 1964—Dec.................................. 318,7 317.9 267.5 212.5 56,5 59 0 97 0 3.0 520 40*7 46.1 1965—Dec.................................. 321,4 320.9 270.3 214.6 60.2 502 104.2 2,8 52.9 50.3 46. 3 325.3 324.7 266.9 211.8 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 2.7 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 May................................. 331.4 330.9 271,8 216.7 64.1 5.6 49 I 97.9 2.6 52.6 51 1 55.2 June,........................ 326.7 326.2 266.1 210.7 58.5 5.6 49.1 97.4 2.6 52.9 51.2 56.2 July.................................. 331.2 330,6 270.9 215.0 62.8 5.6 49.1 97,4 2.6 53.4 51.3 56,2 Aug............................... 336.4 335.9 274.1 218.3 63,3 57.5 97 4 2.6 53.3 51.4 58.3 Sept................................. 336.4 335.9 274.7 218.6 63.7 ........5..7..,.6 97.3 2.6 53.5 51.4 57.7 i Includes non-interest-bearing debt (of which $262 million on Sept. 30 bonds, foreign currency scries, 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 $18,912 million on Aug. 31, 1967. 6 Held only by U.S. Govt, agencies and trust funds. ♦ Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. Note.—Based on Daily Statement of U.S. Treasury. s 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 io o d f T g d r o e o t b s a t s l ag G t U e a r o n u n .S v c d s i . t t e , s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l s M b av a u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t ts e l . Savi I n n g d s i vidu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 i O m t n o v t i r h s e s c e s . r ­ 2 funds bonds securities 1941—Dec............... 64.3 9 5 2.3 52.5 21 4 3.7 8.2 4.0 ,7 5.4 8.2 .4 .5 1945—Dec......... 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42,9 21.2 2,4 6.6 1947—Dec............... 257,0 34 4 22.6 200.1 68.7 12.0 23.9 14 1 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 I960—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 it J 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—Aug.............. 324.9 69.3 42.5 213.1 55.0 5.0 9.7 14.3 24.4 49.9 24.7 15.4 14.6 Sept.............. 325.3 69.2 42.9 213.2 54 8 5 0 9.7 13 5 24.2 49.9 25.8 15.2 15.0 Oct.... 327.4 68.0 43,0 216.4 55.3 4,8 9.6 14 9 24.2 49.9 26.2 15.2 16.1 Nov............. 329.9 68.9 43,9 217.1 55.5 4.8 9.7 16.0 24,1 50.1 25.9 15.4 15.7 Dec............... 329.8 68.8 44.3 216.7 57.5 4.7 9.6 14.7 23.8 50.2 25.4 14.5 16.4 1967—Jan................ 329.4 68,2 43.5 217,7 57.6 4.5 9.5 14.9 23.4 50.1 25,8 14.0 17.7 Feb............... 330.1 69.6 44.0 216.6 57.2 4.6 9.3 15.0 23.7 50 3 25.3 14,1 17.1 Mar............. 331,5 70.7 44.9 215.9 57.8 4 5 9.2 14.1 23.5 50,4 25.5 14.5 16.5 Apr......... 328.3 70.4 45 5 212.5 56.9 4.3 9.0 12.9 23.5 50.5 24,4 15.0 16.0 331.4 74.6 46.1 210,8 56.1 4.3 9.0 13.4 23.1 50.5 23.8 15,0 15.6 June............. 326.7 75.8 46.7 204.2 55.1 4.2 8.7 11.3 22.3 50,6 22.8 14.7 14.6 July... .......... 331.2 75.5 46.8 208.9 57.9 4.2 8.7 12,1 22.0 50.7 22.9 14.4 16.0 Aug............... 336.4 77.2 46,6 212.6 59.8 4.2 8,7 12.8 22.5 50.8 23.2 14.3 16.3 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. * 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

OCTOBER 1967 U.S. GOVERNMENT SECURITIES 1787 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 r s y 5 e - a 1 r 0 s 1 y 0 ea -2 rs 0 20 O y v e e a r r s 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—July 31..................................................... 214,968 93,957 62,844 31,113 71,433 24,376 8,423 16,780 Aug. 31..................................................... 218,258 95,040 63,344 31,696 76,244 21,793 8,422 16,758 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. 31 .......................................... 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—July 31............................................. 17,066 4,274 3,397 877 4,637 2,529 2,114 3,512 Aug. 31 ........................................... 16,735 4,021 2,892 1,129 4,960 2,127 2,114 3,512 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—July 31............................................. 46,804 31,868 14,176 17,692 13,407 1 ,014 174 342 Aug. 31............................................. 46,555 30,394 13,927 16,465 14,745 900 174 342 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—July 31............................................. 151,098 57,815 45,271 12,544 53.389 20,833 6,135 12,926 Aug. 31............................................ 154,968 60,625 46,525 14,102 56,539 18,766 6,134 12,904 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—July 31...................................... 47,890 13,601 8,298 5,303 24,910 8,427 448 505 Aug. 31..................................... 49,441 14,906 8,442 6,464 26,013 7,561 448 515 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—July 31...................................... 4,106 524 312 212 1,530 841 280 932 Aug. 31..................................... 4,101 543 318 225 1 ,628 746 278 905 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—July 31.............................. . .. . 7,352 417 206 211 1,966 1,288 1,080 2,602 Aug. 31...................................... 7,403 536 264 272 2,001 1 ,186 1,109 2,572 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—July 31...................................... 4,385 3,076 2,475 601 1,117 142 6 45 Aug. 31...................................... 4,702 3,486 2,778 708 1,037 134 3 42 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—July 31...................................... 4,150 870 613 257 1,553 981 270 476 Aug. 31...................................... 4,320 942 625 317 1,771 860 269 476 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—July 31...................................... 14,596 5,416 4,479 937 2,280 1,210 1,686 4,005 Aug. 31...................................... 14,884 5,839 4,890 949 2,269 1,115 1,660 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...................................... <73,690 38,685 32,646 6,039 18,896 9,619 2,215 4,275 1967—July 31...................................... 68,619 33,911 28,888 5,023 20,033 7,944 2,365 4,361 Aug. 31...................................... 70,117 34,373 29,208 5,167 21,821 7,164 2,367 4,394 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,882 commercial banks, 501 mutual savings Ownership. banks, and 763 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

1788 U.S. GOVERNMENT SECURITIES OCTOBER 1967 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total Dealers and brokers securities W 1 y it e h a in r . y 1 e - a 5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U.S. Govt, m C b e a o r n c m k ia s ­ l o A th l e l r securities Other 1966—Aug....................... 1,786 1,497 189 62 38 573 78 721 413 175 Sept............................ 2,004 1,682 198 82 43 741 101 730 431 170 Oct.............................. 2,329 2,019 192 82 35 782 93 915 538 180 Nov.......................... 2,339 1,864 334 118 24 849 94 896 501 204 Dec............................. 2,712 2,059 427 160 66 1,114 121 978 500 232 1967—Jan.............................. 2,266 1,827 288 102 49 912 110 791 453 281 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 2,111 1,738 262 82 28 813 76 746 475 222 M^y............................ 2,075 1,636 332 77 30 784 63 720 507 188 June........................... 1,802 1,502 226 52 23 659 56 621 466 199 July............................ 2,084 1,857 161 45 21 740 58 741 544 219 Aug............................ 1,884 1,578 243 33 30 662 60 662 500 159 Week ending-— 1967—Aug. 2...................... 2,257 1,933 258 40 25 822 59 865 511 157 9...................... 1,970 1 ,604 287 48 32 774 84 663 449 122 16...................... 1,857 1,591 204 38 24 632 44 682 499 253 23...................... 1,518 1,257 193 24 44 568 43 471 436 160 30...................... 1,944 1,670 242 28 20 642 65 692 545 115 Sept. 6...................... 2,035 1,778 204 28 26 639 60 872 465 151 13...................... 1,811 1,580 170 34 27 612 42 656 501 188 20...................... 1,718 1,538 135 26 20 673 56 582 407 166 27. ............ 1,922 1,697 174 22 29 727 48 686 453 246 Note.—The transactions data combine market purchases and sales of ties under repurchase agreement, reverse repurchase (resale), or similar U.S. Govt, securities dealers reporting to the F.R. Bank of N.Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of, and exchanges for, new U.S. Govt, securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi­ DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Period All Within 1-5 Over se a G c g u e o r n v i c t t i y . e s Period sou A r U c es New Else­ C t o io rp n o s r 1 a­ o A th l e l r maturities 1 year years 5 years York where City 2,188 2,001 181 6 208 Sept......... 2,229 2,043 108 78 269 1966—Aug....... 2,229 394 430 925 480 Oct.......... 2’,500 2,224 109 166 353 Sept.......... 2^410 725 615 731 340 Nov.,.... 3'756 2'925 639 193 429 Oct........ 2’346 508 580 823 435 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........4.,442 3 527 681 235 467 1967—Jan............ 4,925 1 565 1,678 983 700 4,084 3,362 475 248 415 Feb........... 4,530 1,391 1,331 1,069 740 3,902 3,296 382 223 450 Mar.......... 4,298 1,289 1,461 825 723 May........ 3,375 2,503 744 129 371 Apr........... 4,162 1,093 1,576 829 664 June....... 2,869 2,389 406 74 314 3,612 935 1,156 764 757 July......... 2,239 2,115 106 18 239 June......... 3,262 1,121 984 665 492 Aug...... 2,903 2,564 312 26 265 July.......... 2'146 649 622 598 276 2^16 835 734 868 280 Week ending—• Week ending— 1967—July 5.. 1,406 1,234 152 20 257 12.. 2,073 1,950 122 1 163 July 5... 1,703 388 463 520 332 16.. 2,429 2,303 105 22 240 12. 1,664 350 486 525 303 23.. 2,314 2,193 98 23 295 19. 2,513 812 806 583 312 26... 2,350 812 613 684 240 Aug. 2.. 2,932 2,718 172 43 265 9. . 3,122 2,598 467 57 244 Aug. 2... 2,610 906 793 708 203 16.. 2,775 2,469 281 25 247 9... 2,737 777 779 798 384 23. . 2,413 2,278 132 3 299 16. 2,764 883 621 908 352 30. . 3,175 2,811 353 11 275 23. 2,637 766 711 956 204 30. .. 2,625 812 747 851 215 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

OCTOBER 1967 GOVERNMENT SECURITIES 1789 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, SEPTEMBER 39, 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. Sept. 30 1967................ 1 ,400 Mar. 22, 1968*.............. 2,003 May 15, 1971..........5% 4,265 Aug. 15, 1971..........4 2.806 Oct. 5’ 1967................ 2,302 Mar. 28’ 1968................ 1 ,000 Oct. 1, 1971..........11/2 72 Nov. 15, 1971..........37/8 2,760 Oct. 13’ 1967................. 2,401 Mar. 3L 1968................ 1 ,400 Feb. 15, 1971..........5 Vs 2,508 Feb. 15, 1972..........4 2,343 Oct. 19’1967.............. 2'402 Apr. 22j 1968*.............. 2,001 Nov, 15, 1971..........55/8 1,734 Aug. 15, 1972..........4 2,578 Oct. 26’ 1967........... 2'401 1.402 Feb. 15, 1972..........4^ 2,006 Aug. 15, 1973..........4 3,894 Oct. 31’ 1967................ 1,406 May 31, 1968................ 1 ,401 Apr. 1, 1972..........U4 28 Nov. 15, 1973..........4/g 4,354 Nov. 2 1967 ............... 2,405 1 001 May 15, 1972..........4% 5,310 Feb. 15, 1974..........4*4 3,130 Nov. 9’ 1967................ 2,400 July 3L 1968................ 1,001 May 15, 1974.......4% 3,590 Nov. 16’ 1967................ 2,400 Aug. 3L 1968................ 1 ,000 Nov. 15, 1974.......3% 2,242 Nov. 24, 1967................ 2,’402 May 25, 1975-85...4*4 1,217 Nov. 30’ 1967.......... 3’802 Treasury bonds June 15, 1978-83... 3 *4 1,572 Dec. 7’ 1967................ 2,401 Dec. 15, 1963-68... 2*4 1,789 Feb. 15, 1980.......4 2,603 Dec. 14’ 1967................ 2'401 June 15, 1964-69...2>/i 2,544 Nov. 15, 1980..........3/2 1.909 Dec. 2L 1967................ 2'400 Oct. 1, 1967.. .. . . l’A 457 Dec. 15, 1964-69.. .2*4 2,491 May 15, 1985......... 3*4 1,120 Dec. 28 1967................ 2’402 Nov. 15, 1967..........4H 8,135 Mar 15, 1965-70...214 2,287 Aug. 15, 1987-92...4% 3,817 Dec, 31' 1967................ 1'401 Feb. 15, 1968.........5% 2'635 Mar. 15, 1966-71... 2*4 1,226 Feb. 15, 1988-93... 4 249 Jan. 4^ 1968................ 1'000 Apr. 1,1968..........11/2 '212 June 15, 1967-72...2(4 1,258 May 15, 1989-94.. .4*/8 1,559 Jan. IL 1968................ 1 ,000 May 15', 1968..........4% 5,587 Sept 15, 1967-72...214 1,952 Feb. 15, 1990..........3*4 4,888 Jan. 18, 1968................ 1,001 Aug. 15'1968..........4’% 6,444 Nov. 15, 1967..........3Vs 6,251 Feb. 15, 1995..........3 1 ,847 Jan. 25^ 1968................ 1 ,000 Nov. 15, 1968..........5% 9,913 Dec. 15, 1967-72...2>4 2,631 Nov. 15, 1998..........3/z 4,375 Jan. 3L 1968................ 1 ,401 Oct. 1 ’ 1968..........l«/2 115 May 15, 1968.......3% 2,460 Feb, l' 1968................ I '000 Apr. 1,1969..........U/2 61 Aug. 15, 1968.......3% 3,747 Feb. 8’ 1968................. 1 ,000 Oct. 1, 1969..........U/2 159 Nov. 15, 1968.......3’/s 1,591 Feb. 15^ 1968................ 1 ,001 Apr. L 1970..........1*4 88 Feb. 15, 1969.......4 3,728 Feb. 23' 1968................ 1'001 Oct. 1, 197p.. -. . .1*4 113 Oct. 1, 1969.......4 2,018 Convertible bonds Feb. 29 1968................ 2'402 Nov. 15, 1970..........5 ’ 7,675 Feb. 15, 1970.......4 4,381 Investment Series B Mar. 7, 1968................ Cool Apr. L 1971.........l*/2 ' 35 Aug. 15, 1970.......4 4,129 Apr. 1, 1975-80...2% 2,568 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 Total Use of proceeds amount Period deliv­ Total G g o a e b t a n i l l o e i­ n r­ s R n e u v e e­ PHA* G l U o o a .S v n t . s , State S d p i s a s t e n t a c r d t i i , c a l t Other 2 ered3 Total c E at d io u n ­ b R r a i o d n a g d d e s s i U tie ti s l­ 4 H in o g u s s­ V a a e n i t d s e ’ r ­ p O p o u t s h e r e ­ s r 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 2OI 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 10396 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 7J77 3,517 464 170 2,401 3’784 5,144 11’538 10,471 3,619 900 1,965 626 50 3,311 1966................ 11,395 6,804 3,955 325 312 2,590 4 110 4 695 n.a. 11,294 3,738 1,476 1 ,880 533 3,667 1966—June.... 1,143 587 395 110 51 275 428 440 n.a. 1,141 506 118 200 110 207 July.... 702 406 276 20 174 246 282 n.a. 701 226 142 73 8 252 Aug.... . 775 453 287 35 134 275 366 n.a. 773 279 32 103 6 353 Sept. . 1 032 441 453 120 18 79 572 381 n.a. H ,020 218 220 222 124 236 Oct....... r759 539 178 34 r2t6 256 287 n.a. ''755 '306 12 99 9 328 Nov.. .. r976 598 364 12 r231 334 410 n.a. '969 '381 108 226 40 213 Dec...... r940 397 533 11 100 568 272 n.a. 940 297 280 87 131 164 1967—Jan....... rl ,472 ^943 r5O3 27 r397 331 r744 n.a. rl ,467 '408 '219 163 1 r676 Feb .. rl '229 r932 r286 10 r257 r3O7 r665 n.a rl J95 r467 H33 rt 16 r478 Mar.... *T ,454 r841 r459 117 37 r231 r548 r675 n.a. rl ,438 '427 '123 r339 126 r422 Apr...... 1 129 849 254 27 180 r246 702 n.a. H ,110 458 59 213 10 369 May.... 1 ’235 755 452 28 313 296 624 n a 3 ,'210 482 115 100 11 500 June.... 1,443 820 479 117 27 137 661 r645 n.a. 1,443 570 131 210 148 ........3.8..3 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

1790 SECURITY ISSUES OCTOBER 1967 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Proposed use of net proceeds, all corporate issues 6 Noncorporate Corporate New capital Period Re­ Bonds Stock tire­ Total G U o . v S t . .2 G a U c g o y e S v n 3 t . ­ , l S o U a c t n a . a S d t l e . 4 Other 5 Total Total o P f l f i u c e l b r y e ­ d p v l P a a t r c e i e l ­ y d fe P r r r e e ­ d C m o o m n ­ Total Total m N on ew ey 7 O p p o t u h s r e e ­ s r s m r e i o t c e i f e u n s ­ t 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.................. 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 10’656 1,205 10^544 760 13’957 10,865 3'623 7’243 412 2,679 13,792 13'038 11,233 1’805 754 [965.................. 40,108 9’348 2,731 11,148 889 15'992 13,720 5'570 8150 725 1 '547 15,801 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—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 2,518 408 450 736 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 1967—Jan......... 5,091 494 1,251 1 ,450 211 1,684 1,593 745 848 51 40 1,669 1,648 1 ,522 125 21 Feb........ 7; 523 4,154 ’783 1J59 10 1,418 1 ,262 900 362 17 139 1,400 I‘399 1,375 24 1 Mar....... 5,253 459 750 1,437 245 2,362 2,219 1,618 601 24 119 2,334 2,317 2,178 139 17 4,229 393 650 1,129 41 2,015 1,768 1,368 410 144 94 1,964 1,973 1 ,891 82 12 May..... 4^002 438 810 1,209 26 1,518 1,361 '965 396 47 UI L478 1,474 1,418 56 19 June....... 5,373 410 650 1 ,461 179 2,674 2,343 1,684 659 17 313 2,631 2,611 2,363 248 20 July....... 4,377 415 407 925 32 2,598 2,384 1,888 496 85 130 2,554 2,466 2,214 251 89 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e l r la c n ia e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ rities rities rities rities rities rities 1959............................................ 1,941 70 812 28 942 15 3,189 15 707 * 1 801 6 1960............................................ 1 '997 79 794 30 672 39 2,754 51 1,036 I 2,401 71 1961............................................ 3’691 287 1 109 36 651 35 2’883 106 1,435 382 2'248 22 1962............................................ 2,958 228 ’803 32 543 16 2,341 444 1 ’276 11 1'825 23 1963............................................ 3,272 199 756 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--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.................... 624 20 103 144 220 293 ♦ 264 1 Feb.................................. 563 72 * 140 274 105 244 * Mar........................... 1 254 16 112 214 503 145 89 Apr.................................. 1,128 7 102 4 100 394 1 107 141 May................................ '588 1 94 * 199 1 403 17 91 100 * June................................. 1,298 16 218 3 128 471 350 146 July.................................. 934 22 270 23 372 20 446 24 40 ........4..0.4.. ............. 1 Gross proceeds are, derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. < See Note to table at bottom of opposite page. Note.—Securities and Exchange Commission estimates of new issues 5 Foreign governments. International Bank for Reconstruction and maturing in more than I 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

OCTOBER 1967 SECURITY ISSUES 1791 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire­ Net New Retire­ Net issues ments change issues ments change I c n o ve s s .1 t, Other In c v o e s s .1 t, Other I c n o ve 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 1966—11............... 7,517 2,233 5,286 3,993 1,153 2,841 1,518 2,006 548 532 970 1,475 Ill.............. 5,534 1,756 3,777 3,732 943 2,789 1 ,271 531 490 323 78! 207 IV.............. 5,615 2,535 3,080 3,336 1,111 2,225 1,657 622 431 993 1,226 -371 1967—1................. r7,252 2,344 r4,908 4,274 1,202 3,522 'I ,742 786 592 550 rl,150 235 II..................... 7,394 2,599 4,795 4,978 1,318 3,660 1 ,375 1 ,041 701 581 674 461 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B n on 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 1966—11............. 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 '1,133 1967—1................. 1,489 52 130 -6 372 19 642 90 511 97 379 1,251 II............... 1,858 107 178 52 198 47 1,089 117 320 158 41 655 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 (Tn 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 si a t s io h n 3 Other Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a t s i h o n3 Other 1955 ............. 1,207 443 765 7,838 438 7,400 1966—Aug... 357 187 170 32,553 2,657 29.896 1956............. 1,347 433 914 9'046 492 8^54 Sept... 327 145 182 32’223 3,036 29,187 1957............. 1 ,'391 406 984 8,714 523 8,191 Oct... 329 133 196 33,483 3,244 30,239 1958............. 11620 511 1,109 13,242 634 12,608 Nov.,. 295 143 152 34,497 3,206 31,291 Dec... 300 151 149 34,829 2,971 31,858 1959............. 2,280 786 1,494 15,818 860 14,958 1960........ 2^097 842 1,255 17,026 973 16'053 1967—Jan.... 391 183 209 37,230 2,869 34,361 1961............. 2,951 1,160 1,791 22,789 980 21,809 Feb... 298 179 120 38,034 2,866 35 J 68 1962............. 2; 699 1,123 1 '576 21,'271 1,315 19,'956 Mar.. 389 226 163 39,443 2,682 36'761 Apr... 358 214 144 41,191 2,666 38;525 1963............. 2,460 1,504 952 25,214 1,341 23,873 May.. 357 258 99 39,847 2,608 37,239 1964............. 3,404 I ,'875 1,528 29J16 1 ^329 27'787 June.. 375 225 150 40,795 2,503 38,'292 1965 ............. 4,359 F962 2,395 35,220 1 ,803 33,417 July... 425 222 203 43,064 2,515 40,549 1966............. 4,’671 2,005 2; 665 34,829 2,971 31,858 Aug... 347 249 98 42,663 2,370 40;293 1 Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, all U S Govt, securities, and other and contractual accumulation plan sales, and reinvestment of invest­ short-term debt securities less current liabilities. ment income dividends; excludes reinvestment of realized capital gains dividends. Note.—Investment Company Institute data based on reports of mem­ 2 Market value at end of period less current liabilities. bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1792 BUSINESS FINANCE OCTOBER 1967 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1965 1966 1967 Industry 1962 1963 1964 1965 1966 HI IV I 11 HI IV I II Manufacturing Total (177 corps.): Sales............................................. 136,545 147,380 158,253 177,237196,488 42,060 46,601 47,778 49,909 46,225 52,576 48,646 51,386 Profits before taxes..................... 15,330 17,337 18,734 22,046 23,420 4,717 5,787 6,020 6,460 4,881 6,059 5,153 5,574 Profits after taxes........................ 8,215 9,138 10,462 12,461 13,244 2,729 3,270 3,353 3,643 2,845 3,403 2,918 3,172 Dividends.................................... 5,048 5,444 5,933 6,527 7,205 1,430 2,062 1,570 1,754 1,916 1,965 1,670 1 ,655 Nondurable goods industries (78 corps.):1 Sales............................................ 52,245 55,372 59,770 64,897 73,850 16,408 16,697 17,804 18,555 18,320 19,171 18,804 19,578 Profits before taxes..................... 5,896 6,333 6,881 7,846 9,107 2,010 2,017 2,204 2,444 2,305 2,158 2,153 2,250 Profits after taxes........................ 3,403 3,646 4,121 4,786 5,419 1,219 1,251 1,305 1,427 1,389 1,298 1,319 1 ,343 Dividends..................................... 2,150 2,265 2,408 2,527 2,729 613 707 651 682 673 723 720 704 Durable goods industries (99 corps.):2 Sales............................................ 84,300 92,008 98,482 112,341 122,638 25,652 29,904 29,974 31,354 27,905 33,405 29,842 31,808 Profits before taxes..................... 9,434 11,004 1 1,853 14,200 14,313 2,707 3,770 3,815 4,020 2,577 3,901 3,000 3,324 Profits after taxes........................ 4,812 5,492 6,341 7,675 7,824 1,511 2,019 2,047 2,216 1 ,456 2,105 1,599 i ,829 Dividends.................................... 2,898 3,179 3,525 4,000 4,476 817 1,356 919 1,072 1,243 1,242 950 951 Selected industries: Foods and kindred products (25 corps.): Sales............................................ 13,457 14,301 15,284 16,427 19,284 4,252 4,217 4,678 4,732 4,782 5,092 5,024 5,103 Profits before taxes..................... 1,460 1 ,546 1,579 1 ,710 1 ,912 453 439 439 488 504 481 447 482 Profits after taxes........................ 698 747 802 896 1 ,006 235 237 230 257 262 257 236 253 Dividends.................................... 425 448 481 509 564 126 133 137 142 139 146 148 144 Chemical and allied products (20 corps.): Sales............................................ 13,759 14,623 16,469 18,158 19,998 4,657 4,656 4,885 5,216 4,824 5,063 4,998 5,163 Profits before taxes..................... 2,162 2,286 2,597 2,891 3,073 737 707 760 874 789 650 694 700 Profits after taxes........................ 1,126 1,182 1,400 1,630 1 ,737 411 409 428 480 443 386 396 404 Dividends.................................... 868 904 924 926 948 215 285 221 224 234 269 238 235 Petroleum refining (16 corps.): Sales............................................ 15,106 16,043 16,589 17.828 20,844 4,381 4,504 4,945 5,114 5,298 5,487 5,390 5,808 Profits before taxes.................... 1,319 1,487 1,560 1 ,962 2,619 497 522 656 668 631 664 684 741 Profits after taxes........................ 1,099 1,204 1,309 1,541 1 ,846 395 400 457 467 479 443 505 504 Dividends,....................... 566 608 672 737 817 183 196 200 204 204 209 232 227 Primary metals and products (34 corps.): Sales............................................ 21,260 22,116 24,195 26,548 28,572 6,657 6,167 6,567 7,457 7,309 7,239 6,801 7,040 Profits before taxes..................... 1,838 2,178 2,556 2,931 3,277 690 623 682 928 857 810 693 669 Profits after taxes........................ 1,013 1,183 1,475 1,689 1,903 397 373 402 537 490 474 395 411 Dividends.................................... 820 734 763 818 924 202 221 216 218 230 260 222 227 Machinery (24 corps.): Sales............................................ 19,057 21,144 22,558 25,364 30,141 6,291 6,785 6,985 6,889 7.538 8,729 7,704 7,597 Profits before taxes..................... 1,924 2,394 2,704 3,107 3,613 772 788 894 915 851 953 868 774 Profits after taxes........................ 966 1,177 1,372 1 ,626 1 ,880 408 410 456 480 444 500 421 399 Dividends.................................... 531 577 673 774 912 188 207 217 225 226 244 232 227 Automobiles and equipment (14 corps.): Sales............................................ 29,156 32,927 35,338 42,712 43,641 8,294 12,033 11,718 11,728 8,046 12,149 10,413 11,875 Profits before taxes..................... 4,337 5,004 4,989 6,253 5,273 752 1,797 1 ,779 1 ,615 313 1,566 1,050 1 ,436 Profits after taxes........................ 2,143 2,387 2,626 3,294 2,866 428 923 934 893 224 815 583 782 Dividends.................................. 1,151 1 ,447 1,629 1,890 1,775 307 759 360 503 361 551 363 365 Public utility Railroad: Operating revenue...................... 9,440 9,560 9,778 10,208 10,654 2,575 2,668 2,518 2,728 2,690 2,718 2,536 2,628 Profits before taxes.................... 729 816 829 980 1,088 248 328 213 327 280 268 145 n.a. Profits after taxes........................ 572 651 694 816 902 206 276 172 259 227 244 121 n.a. Dividends.................................... 367 383 438 468 496 81 161 113 109 113 161 124 n.a. Electric power: Operating revenue...................... 13,489 14,294 15,156 15,816 16,908 3,878 3,997 4,401 4,026 4,236 4,246 4,697 4,280 Profits before taxes..................... 3,583 3,735 3,926 4,213 4,395 1,050 1,000 1,215 987 1,153 1,041 1,279 1,026 Profits after taxes........................ 2,062 2,187 2,375 2,586 2,764 630 637 758 632 702 673 799 666 Dividends.................................... 1,462 1,567 1,682 1,838 1,932 357 577 473 486 475 505 518 510 Telephone: Operating revenue...................... 9,196 9,796 10,550 11,320 12,420 2,854 2,944 2,992 3,091 3,135 3,202 3,229 3,312 Profits before taxes..................... 2,639 2,815 3,069 3,185 3,537 830 806 851 907 911 868 869 923 Profits after taxes...................... 1,327 1,417 1,590 1,718 1,903 447 432 460 488 487 468 472 497 Dividends.................................... 935 988 1,065 1,153 1,248 294 296 302 309 317 320 334 337 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

OCTOBER 1967 BUSINESS FINANCE 1793 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a a r f o x t f e e i r s t s d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a n a t l i l s p o o u i n w t m a ­ l p ­ Quarter P b ta r e o x fo f e i r s t e s c ta o I x n m e ­ e s P t a a r f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d fi t i t e s s d ­ co c a n t a l i s l p o o u n i w t m a ­ l p ­ ances 1 ances 1 1959............. 52.1 23.7 28.5 12.6 15.9 23.5 1965—11.... 75.6 30,9 44.6 19.4 25.2 36.0 1960............. 49.7 23.0 26.7 13.4 13.2 24.9 III... 75.8 31.1 44.8 20.2 24.6 36.9 IV... 80.8 33.1 47.7 20.9 26.8 37.8 1961............. 50.3 23.1 27.2 13.8 13.5 26.2 1962 55 4 24 2 31 2 15 2 16 0 30 1 1966 I 83 7 34 5 49 2 21 4 27 8 38 3 1963.............. 59.4 26*3 33 J 16^5 16^6 3L8 IL. .. 83^6 34^5 49*2 2L6 27^6 38.7 1964............. 66.8 28.3 38.4 17.8 20.6 33.9 III... 84,0 34.6 49.4 21,6 27.8 39.2 1965............. 76.6 31.4 45.2 19.8 25.4 36.5 IV... 83.9 34.6 49.3 21.2 28.2 39,8 1966............. 83.8 34.5 49.3 21.5 27.8 39.0 1967—1. .. . 79.0 32.5 46.5 22.2 24.2 40.3 II.. . 78,9 32.5 46.5 23.1 23.4 40.9 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............................ 183.4 407.9 49.2 16.7 3 9 189.6 126.3 22.1 224.5 3.1 157.6 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 1967—i....................... 195.2 442,4 46.5 14 4 4.4 204.4 148.2 24.5 247.2 5.4 170 8 18.6 52.4 II..................... 196.4 443.3 47.0 11.5 4.6 206.7 149.4 24.1 246.9 5.9 174.3 12.6 54,0 1 Receivables from, and payables to, the U.S, Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and Ioan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Mining Public Commu­ Other 1 (S.A. Durable d N ur o a n b ­ le Railroad Other utilities nications an ra n t u e) al 1959...................................... 32.54 5.77 6 29 .99 .92 2.02 5.67 2.67 8.21 1960...................................... 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..................................... 62.03 14.10 13 21 1.48 1.57 3.92 9 41 18 34 1965—11................................ 12.81 2.76 2.70 .33 .44 .77 1.71 1.24 2 85 50.35 in.............................. 13.41 2.91 2.82 .32 .44 .72 1.88 1.22 3.10 52.75 IV............................... 14.95 3.48 3 24 .35 .46 .73 2.04 1.41 3 25 55.35 1966—J................................ 12.77 2.87 2.74 .33 .40 .75 1.60 1.26 2.83 58.00 H................................ 15.29 3.51 3.27 .40 .55 1.00 2.09 1.42 3.06 60.10 in 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—1................................. 13.59 3.08 3.02 .32 .41 ,70 1.84 1.35 2.87 61,65 ii 15.61 3.46 3.34 .34 .41 1.12 2.46 L49 2 09 61,50 Ill2............................. 15.77 3.44 3.28 .39 .37 1,05 2.61 4.63 62.50 IV2............................. 17.06 4.12 3.57 .42 .37 1.06 2,51 5.01 62.65 1 1 Includes trade, service, finance, and construction. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business, excluding agriculture. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1794 REAL ESTATE CREDIT OCTOBER 1967 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Noniarm Other Multifamily and Mortgage E pe n r d i o o d f h e A o r l l s d l ­ tu F i t c i n i n i o s a a t n l i n ­ s ­ 1 a U c g i . e e S h s n . o ­ lde v o r I i s a t d n h 2 n u d e d a i r ­ l s s h e A o r l l s d l ­ tu F i t i n c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h e A o r l l s d l ­ T 1 o - t t a o l 4- t f u F a i t m i n i n o s i a t n l i n y ­ s , 1 ho O u h e s o t r e h l s d s e 4 ­ r c T o o m ta m l er t c u F i i a t n i i n l o s a t n p i n ­ s r , o 1 pe O h r e t o t i r h l e s d e s ­ r 5 w u F n V r H i d A t A t e e - t r - n y ­ pe t C 6 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 2t.O 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 2(2.4 153.1 128.2 24.9 59.3 39.4 19.9 65.5 146.9 1962.......... 248.6 192.5 12.2 44.0 15.2 5.5 9.7 233.4 166.5 140.4 26.0 66.9 46.6 20.4 69.4 164.1 1963........... 274.3 217.1 11.2 45.9 16.8 6.2 10.7 257.4 182.2 156.0 26.2 75.3 54.9 20.3 73.4 184.0 1964........... 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.4 27.2 83,6 63.7 19.9 77.2 204.0 1965........... 326.2 264.5 12.4 49.3 21.2 7.8 13.4 305.0 213.7 185.1 28.6 91.3 71.6 19.7 81.2 223.8 1966”......... 347.1 280.6 15.8 50.7 23.3 8.4 14.9 323.8 225.1 193.7 31.4 98.7 78.4 20.3 84.0 239.8 1965 I 305.3 245.8 11.6 47 9 19.5 7.2 12.3 285.8 200.7 173 3 27.4 85.1 65.3 19.8 77.9 207.9 li ’.. 312.5 252.2 11.7 48.6 20.2 7.4 12.8 292. 3 205.1 177.4 27.7 87.2 67.4 19.8 78.7 213.6 in... 319.4 258.6 11.9 49.0 20.7 7.6 13,1 298.7 209.6 181.5 28,0 89.2 69.4 19.7 80.0 218.7 IV... 326.2 264.5 12.4 49.3 21.2 7.8 13.4 305.0 213.7 185.1 28.6 91.3 71.6 19.7 81.2 223.8 1966—1”. .. 331.9 269.3 13.5 49.1 21.8 8.0 13,7 310.1 216.9 187.9 29.0 93.2 73.3 19.9 82.1 228.0 IP.. 338.4 274.4 14.4 49.7 22,5 8.2 14.2 316.0 220.7 190.9 29.8 95.3 75,2 20. 1 82.6 233.4 Ill” . 343.2 277.9 15.2 50.2 23.0 8.4 14.6 320.3 223.1 192.5 30.6 97. 1 77.0 20.2 83.4 236.9 IV”.. 347.1 280,6 15.8 50.7 23.3 8.4 14,9 323.8 225.1 193.7 31.4 98.7 78.4 20.3 84.0 239.8 1967—I”... 350.6 283,1 16.4 51.1 23.7 8.5 15.2 326.9 227.0 195.1 31.9 99.9 79.5 20.4 84.4 242,5 II”.. 356.3 1 Commercial banks (including nondeposit trust companies but not 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone trust depts.), mutual savings banks, life insurance companies, and savings are shown on second page following. and loan assns. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., Note.—Based on data from Federal Deposit Insurance Corp., Federal and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. Home Loan Bank Board, Institute of Life Insurance, Depts, of Agricul­ Other U.S agencies (amounts small or current separate data not readily ture and Commerce, Federal National Mortgage Assn., Federal Housing available) included with “individuals and others.” Admin., Public Housing Admin., Veterans Admin., and Comptroller 3 Derived figures; includes debt held by Federal land banks and farm of the Currency. debt held by Farmers Home Admin. Data shown have been adjusted to allow for recent revisions by Dept, * For multifamily and total residential properties, see second following of Commerce of end-of-year figures on multifamily and commercial page. properties back to 1962. 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. Figures for first J 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 Other Other Total Total FH in A ­ - g V u A ar - - C ve o n n ­ ­ f n a o r n m ­ Farm Total Total FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ n fa o r n m ­ Farm sured antced tional sured anteed tional 1941............................. 4,906 3,292 1,048 566 4,812 3,884 900 28 1945............................. 4,772 31395 856 521 4,208 31387 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........................ 341476 231482 61520 21654 141308 81972 21022 321320 29,181 91238 9,787 10,156 3,088 51 1963.............................. 39,'414 261476 71105 21862 16,'5O9 101611 21327 36,224 32,'718 10,684 10,490 11,544 3,454 52 1964............................. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................. 49^675 32,387 7‘,702 21688 21,997 141377 2,911 44,617 40,096 13.791 11,408 14,897 4,469 52 1966”............................ 541380 341876 71544 21599 24,’733 161366 31138 47,’337 42,242 14,500 11,471 16,272 5,041 53 1965—I........................ 44,799 29,388 7,329 2,722 19,337 12,723 2,688 41,521 37,357 12,664 11,228 13,465 4,112 52 II....................... 461548 301383 71469 21712 201202 131371 2,794 421467 38,214 13,036 11,322 13,856 41202 51 HI..................... 48,353 311574 7 ,'641 2 ,’700 211233 131926 2,853 431539 39,153 13,412 111368 14,373 4,334 52 IV.................... 49,675 321387 71702 2,688 211997 14,377 21911 441617 401096 131791 11,408 14,897 4,469 52 1966—1”....................... 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 II”. ............. 521306 33,800 7,769 21654 23,377 151478 31028 451883 41,083 14,047 11,346 151690 4,747 53 Ill”.................. 531606 341469 71687 21620 241162 161028 3,109 461622 411673 14,274 11,413 15,986 4,896 53 IV”.................... 541380 34,876 7,544 21599 241733 161366 3J38 471337 42,242 14,500 11,471 16,272 5,041 53 1967—jp......... 54,531 48,112 II”..................... 55,780 ..481897 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 call 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

OCTOBER 1967 REAL ESTATE CREDIT 1795 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Non farm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - ­ d Other 1 Farm 1 Total Total in F s H u A re - d a g n V u t A e a c r - - d Other Farm 1945......................................... 976 6,637 5,860 1,394 4,466 766 1961.......................................... 6,785 6,233 1 388 220 4,625 552 44 203 41 033 9 665 6 553 24,815 3 170 (962.......................................... 7,478 6,859 1 ^355 469 5,035 619 46,902 43 ’502 10,176 6’395 26 931 3 400 1963........................................... 9,172 8’306 1 598 678 6,030 866 50^544 46,752 10’756 6^401 29,595 3,792 1964........................................... 10’433 9,386 1 812 674 6^900 1,047 55’152 50’848 11,484 6,403 32,961 4 304 1965.......................................... 11,137 9’988 1,738 553 7,697 1 ’ 149 60^013 55,190 12,068 6*286 36,836 4,823 1966*......................................... 10^202 9,210 1,311 458 7’441 ’992 64,609 59,369 12,351 6,201 40,817 5,240 1966—Julyr................................ 844 789 92 31 666 55 62,921 57 729 12 318 6,217 39 194 5 192 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 40,223 5,232 Nov... 708 673 89 41 543 35 64,353 59 118 12,393 6,195 40'530 5,235 Dec............................ 947 888 82 47 759 59 64,803 59 563 12 411 6 209 40,943 5 240 1967—jan................................... 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 12*459 6*211 41 '589 5*244 Mar................................ 721 632 80 44 508 89 65,798 60 525 12*468 6 217 41 840 5 *273 Apr,................. 603 536 50 25 461 67 66’024 60,721 12,449 6,202 42,070 5 303 May. 641 582 57 31 494 59 66,253 60,924 12'434 6 J 83 42'307 5,329 June...,..,,.,,,..,.,.. 643 569 60 31 478 74 61,038 12,397 6,163 42'478 5,376 July................................. 563 506 36 27 443 57 66,324 60i920 12',311 6', 161 42348 5,404 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because (I) 1959 and with “other” nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) New Period va A n d c ­ es R m e e p n a t y s ­ M de e p m o b si e t r s s’ Period Total 1 h c o o m n­ e H p o u m r­ e Total 2 FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ Total S te h rm or t­ 1 t L e o rm ng ­ 2 struc­ chase sured anteed tional tion 1945...................... 278 213 195 176 19 46 1945 ......... 1,913 181 1,358 5,376 1961................... 2 882 2,220 2,662 1,447 1,216 1 180 1962..................... 4,’ll! 3,294 3,479 2^005 1,474 1,213 1961......... 17,364 5 08t 7,207 68,834 4,167 7,152 57 515 (963..................... 5,601 4,296 4,784 2,863 1,921 1 151 1962...... 20 754 5 979 8 524 78’770 4 476 7*010 67 284 1964..................... 5,565 5 025 5,325 2,846 2.479 1 ,199 1963 ......... 24 735 7*039 9 920 90 944 4 696 6 960 79 288 (965..................... 5,007 4,335 5,997 3,074 2,923 1 ,043 1964......... 24’505 6 515 16*397 101’333 4 894 6*683 89*756 1966... .......... 3,804 2,866 6,935 5 ,’006 1,929 1 ,036 1965......... 23*847 5,922 16’697 HIO 306 f5 145 r6* 398 r98*763 1966......... 16*729 3 604 7,748 r114 192 r5 270 r6 157 r102 765 1966—Aug........... 146 262 7,226 4,625 2,601 698 Sept......... 99 150 7,175 4,627 2'548 727 1966-Aug.. 1,3(4 272 722 414.002 r5,248 '6,244 402,510 Oct.. 300 226 7’249 4,939 2,310 767 Sept.. 1,119 241 572 414,107 '5,257 ^6,210 402,640 Nov........... 104 269 7'084 4,993 2’091 863 Oct... 947 208 473 414,102 '5,255 '6,190 402,657 Dec........ 68 217 6335 5'006 J '929 1,036 Nov.. 866 184 423 414,081 r5,26l ’■6,174 402,646 Dec,. 936 189 423 414,192 r5,270 ^.IS? 402,765 224 818 6,340 4,814 1,526 1,088 Feb............ 49 589 5,800 4,730 1,070 1,240 1967-Jan. . 788 165 365 4 14,229 r5,277 '6,144 402.808 Mar........... 30 655 5 J 75 4'262 913 I '490 Feb.. 950 205 420 414,395 r5,278 ’■6,141 402,976 Apr........... 59 452 4’782 3^976 806 1^648 Mar.. 1,347 306 571 '114,797 '5,296 '6,143 403,358 May. 59 420 4'421 3,776 644 1'831 Apr.. 1,339 312 586 415,233 ’•5.321 r6,14l 403,771 June 89 208 4’302 3’696 606 1,925 May. 1,738 400 779 415,909 r5,365 '6,127 404,417 July........... 193 274 4,221 3^680 541 1,521 June. 2,162 435 1,046 416,944 ’•5,384 r6,l69 405,391 Aug.......... (34 202 4', 153 3,659 494 i;j4j July.. 1,860 382 951 1(7,676 5,437 6,187 106,052 Aug.® 2,2(0 425 1,188 (18,659 5,508 6,225 106,926 i Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 Includes loans for repairs, additions and alterations, refinancing, etc., I 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

1796 REAL estate credit OCTOBER 1967 government-underwritten residential loans made MORTGAGE DEBT OUTSTANDING ON (In millions of dollars) NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Period Total h N o M m ew e o s rtga h i g o s E e t m i x s n ­ e g s e P c r t o s j­ 1 m p P r e e i r o m r n o t v y t p ­ e s ­ ­ 2 Total 3 h N om M ew e o s rtga h i g o s E e t m i x s n ­ e g s E pe n r d io o d f Total Total s F u i H n re ­ A d - a g n V u t A e a e r - - d 1 t C i v o e o n n n a ­ ­ l 1945............... 18.6 4.3 4.1 .2 14.3 1945........................... 665 257 217 20 171 192 1961............... 153.1 59.1 29.5 29.6 93.9 1961........................... 6,546 1,783 2,982 926 855 1,829 1,170 656 1962............... 166.5 62.2 32.3 29.9 104.3 1962........................ 7,184 1 849 3 421 1 079 834 2 652 1 357 1 292 1963............... 182.2 65.9 35.0 30.9 116.3 1963........................... 7,216 1,664 3,905 ’843 804 3,045 1,272 1,770 1964............... 197.6 69.2 38.3 30.9 128.3 1964........................... 8,130 1,608 4,965 895 663 2 846 I '023 1,821 1965............... 213,7 73.1 42.0 31.1 140*6 1965........................... 8,689 1,705 5,760 591 634 2 652 876 1 *774 1966p............. 225.1 76.0 44.8 31.2 149.1 1966........................... 7,320 1,729 4,366 583 641 2,’600 980 1 ’618 1964—1......... 185.4 66.6 35.7 31.0 118.8 1966—Aug................. 622 159 387 18 57 287 96 191 n 189.8 67.3 36.3 30.9 122,5 610 149 367 27 66 257 96 161 HI....... 193.9 68.4 37.4 31.1 125.4 Oct........... 508 140 275 38 54 271 HO 160 IV....... 197.6 69.2 38.3 30.9 128.3 Nov.......... 446 130 238 26 51 247 110 137 Dec................. 409 113 214 35 46 226 104 121 1965—1.......... 200.7 70.1 39.0 31*1 130.6 II......... 205.1 70.7 39.7 31.0 134.4 1967—Jan.................. 449 116 263 26 44 214 100 113 Ill....... 209.6 72.0 40.9 31.1 137.5 Feb.................. 364 91 210 32 31 ‘ 169 77 91 IV....... 213.7 73.1 42.0 31.1 140.6 Mar................. 490 96 292 55 47 195 83 112 Apr................. 440 89 270 41 40 184 70 114 1966—P. .... 216,9 74.1 43.0 31.1 142.8 May*............. 508 87 320 44 58 231 76 154 IIP..... 220.7 74.6 43,7 30.9 146.1 June................ 626 105 403 57 61 266 81 185 HI®.... 223.1 75.4 44.4 31.0 147.7 July................ 595 103 399 36 58 296 82 214 IV».... 225.1 76.0 44.8 31.2 149.1 Aug................. 762 129 525 45 62 340 97 243 1967—Ip........ 227.0 76.4 45*2 31.2 150.6 t Monthly figures do not reflect mortgage amendments included in annual totals, 2 Not ordinarily secured by mortgages. l Includes outstanding amount of VA vendee 3 Includes a small amount of alteration and repair loans, not shown separately; only such accounts held by private investors under repurchase loans in amounts of more than $1,000 need be secured. agreement. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans Note.—For total debt outstanding, figures are represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans FHLBB and F.R. estimates. For conventional, closed. Figures do not take into account principal repayments on previously insured or figures are derived. guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on Based on data from Federal Home Loan Bank number and average amount of loans closed. Board, Federal Housing Admin., and Veterans Admin. FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY MORTGAGE DEBT OUTSTANDING (In millions of dollars) ON RESIDENTIAL PROPERTIES (In billions of dollars) Mortgage holdings Mortgage transactions Com­ All residential Multifamily 1 (during mit­ End of period) ments period Total F su H in re A ­ d - a g n V u t A e a e r - ­ d Pur­ Sales bu d u r i n s s e ­ ­ d E pe n r d io o d f Total F i i c n n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s chases tutions tutions 1961.......................... 6,093 3,490 2,603 815 541 631 1941.............. 24.2 14.9 9.4 5.8 3.6 2.2 1962......................... 5,923 3,571 2,353 740 498 355 1945............ . 24,3 15.7 8.6 5.7 3.5 2.2 1963......................... 4,650 3,017 1,634 290 1,114 191 1964....................... . 4,412 2,996 1,416 424 251 313 1961.............. 176.0 143.0 33.0 23.0 14.8 8.2 1965.......................... 4,731 3,404 1,327 913 200 793 1962.......... 192.5 157.9 34.6 25.8 17.5 8.3 1966......................... 7,063 5,407 1,656 2,701 705 1963............... 211.2 176.7 34.5 29.0 20.7 8.3 1966—Aug............... 6,464 4,916 1,548 180 ........5..1.2 1964.............. 230.8 195.2 35.6 33.2 24.8 8.4 6,592 5,028 1,564 159 532 1965.............. 250.7 213.7 37.0 37*0 28.5 8.5 Oct......... 6 6 , , 7 8 3 9 1 1 5 5 , , 2 1 7 4 2 6 1 1 , , 5 6 8 1 5 9 1 1 8 6 8 8 6 5 1 7 7 6 1966p............. 264.4 224.3 40.1 39.3 30.6 8.7 7,063 5^407 1,656 202 705 1965—1......... 234.8 199.0 35.8 34.1 25.7 8.4 II........ 240.1 204.0 36.1 35.0 26.6 8.4 1967—Jan................. 7,216 5,522 1,694 181 695 III.... 245.5 209.1 36.4 36.0 27.6 8.4 Feb................ 7,331 5,615 1,716 144 641 IV..,, 250.7 213.7 37.0 37.0 28.5 8.5 Mar......... 7,415 5,692 1^723 119 706 A M p a r y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7, , 4 4 6 8 1 4 5 5 , , 7 76 4 7 0 1 1 , '7 7 2 1 1 7 6 7 5 8 1 7 8 4 3 4 5 1966— I I I p P .. . .. . .... 2 2 5 5 4 9 . . 7 0 2 2 2 17 0 . . 1 6 3 3 7 8 . . 6 5 3 3 7 8 . . 8 4 2 29 9 . . 7 2 8 8. . 7 6 June........ 7,524 5,811 1,713 88 6 1,104 HI*... 262.0 222.7 39.3 38.9 30.2 8.7 J A u u l g y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 , , 8 6 7 24 2 6 5 , , 0 8 7 9 6 0 1 1 , , 7 7 9 3 6 4 2 1 9 3 1 6 1 1 1 1 , , 4 3 4 3 7 3 IVp.... 264.4 224.3 40.1 39.3 30.6 8.7 1967—Ip........ 266.8 226.1 40.7 39.8 31.0 8.8 IP.... 271.1 Note.—Federal National Mortgage Assn, data, including mortgages subject to participation pool of Government Mortgage Liquidation Trust, but excluding conventional mortgage loans acquired by FNMA i Structures of 5 or more units. For 1- to 4-family mortgage debt see from the RFC Mortgage Co., the Defense Homes Corp., the Public second preceding page. Housing Admin., and Community Facilities Admin. Note.—Based on data from same source as for “Mortgage Debt Out­ standing” table (second preceding page). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 REAL ESTATE CREDIT 1797 TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n t e r ) t ­ c F c h ( e e a p e n r e s t g ) r e & i s M (y a e tu ar r s it ) y L c p r ( a e o p r t i n e a i c r t o n e ) / (t d h c o o p P h l u r l u a i a s c r s . r e ­ e s o ) f (t a d h m L o o l u o o la a s u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c p r ( e a o p r n t i a e c i t n r o e ) / (t d h c o o p P h l u r l u a i a s c r s . r e ­ e s o ) f (t d h a o o m L l u o l 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-—Aug.......... ■ 6,28 .93 23.6 73.4 25.3 18.6 6.37 .70 20.8 71,6 21.0 15,0 Sept........... 6.30 .94 23.4 71.8 25.4 18,2 6.45 .76 20.2 71.0 20,3 14.4 Oct,....... 6.39 1.06 23. 3 71.8 25.8 18.5 6.50 .78 19.8 70.3 20.4 14.3 Nov............ 6.45 1.08 22.9 71.8 25.0 18.0 6.54 .82 20.1 70.3 20.5 14.4 Dec............ 6.49 1.25 23.3 72.4 25.5 18.5 6.55 .81 20.2 70,9 20.8 14.7 1967-—Jan........ 6.47 1,16 23.8 73.3 26 3 19.3 6.54 .78 20.6 71.4 21.2 15.2 Feb............. 6.44 1.06 23.6 73.8 24 8 18.3 6.50 .75 20.3 71.6 21.3 15.3 Mar........ 6.41 1.05 23.6 74.1 25.6 19.0 6.44 .77 21.0 71.8 21.4 15.4 Apr............ 6.37 .99 23.6 73.3 25 8 18.9 6.36 .72 20.8 72,0 21.6 15.6 May........... 6.28 .96 24.2 74.8 26 2 19,6 6.31 .68 21.1 72.3 22.3 16.1 June........... 6.29 .93 24.0 73.6 26. 3 19.4 6.30 .67 21.4 72.2 23.0 16.6 July............ 6.34 .89 24.2 74.4 27.0 20,1 6.33 .70 21.3 72.7 22.5 16.4 Aug,?......... 6.34 .82 23.9 74.3 27.2 20.2 6.37 .71 21.5 73.2 22.6 16.5 1 Fees and charges-—related to principal mortgage amount—include originated by major institutional lender groups (including mortgage loan commissions, fees, discounts, and other charges, which provide companies) for purchase of single-family homes. Data exclude loans for added income to the lender and are paid by the borrower, They exclude refinancing, reconditioning, or modernization; construction loans to any closing costs related solely to transfer of property ownership. home-builders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning July 1966, not strictly compar­ Note.—Compiled by Federal Home Loan Bank Board in cooperation able with earlier data. See also the table on Mortgages; New and Exist­ with Federal Deposit Insurance Corporation. Data are weighted averages ing Homes, p. 1780. based on probability sample survey of characteristics of mortgages DELINQUENCY RATES ON HOME MORTGAGES NONFARM MORTGAGE FORECLOSURES (Per 100 mortgages held or serviced) Rate Period Number (per cent of Loans not in foreclosure (thousands) mortgaged but delinquent for— Loans in structures) End of period fore­ Total 30 days 60 days o 9 r 0 m da o y r s e closure 1 1 9 9 6 6 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—1................................ 27.9 .48 1966........................ 3.40 2.54 .54 .32 .36 II...................... 30.1 .52 Ill............................. 29.1 .50 1965—1.................... 2.94 2.06 .54 .34 .37 IV............................... 29.6 .50 II.................. 3.00 2.18 ^52 ’30 .38 HI........3....2..0... 2.30 56 34 38 1966—1................................. 28.8 .48 IV........3....2..9... 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....0..9.... 2.25 52 .32 .36 1967_I................................. 29.5 .48 IV................. 3.40 2.54 .54 . 32 136 II........................... 29.7 .48 1967—1................... 3.04 2.17 .56 31 38 fl.................. 2.85 2.14 .45 .26 .34 Note,—Federal Home Loan Bank Board estimates of number of nonfarm mortgaged structures at end of 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

1798 CONSUMER CREDIT OCTOBER 1967 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t e i o l r ­ e co O g p n o a s t o h u p d e m e s r r e r e a r n R n l d o i e z a p m a n a t s o i i o r t d n ­ Pe l r o s a o n n s al Total p S a l i y o n m a g n l e e s n ­ t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939...................................... 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941....................................... 9'172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945...................................... 5,665 2,462 455 816 182 i ;oo9 3,203 746 1,612 845 I960....................................... 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961....................................... 57'678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1962....................................... 63,164 48,034 19,540 12,605 3,246 12,643 15,130 5,456 5,684 3,990 1963...................................... 70,461 54,158 22,433 13,856 3,405 14,464 16,303 6,117 5,871 4,315 1964....................................... 78'442 60'548 25 J 95 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 7,844 7,144 5,142 1966—Aug.................... 91,483 72,640 30,918 18,390 3,755 19,577 18,843 7,849 5,973 5,021 Sept.......... 91’639 72,829 30,793 18,564 3^771 19'701 18,810 7,814 5,993 5^003 Oct............................. 91 ,899 73,073 30,852 18,714 3,770 19,737 18,826 7,768 6,107 4,951 Nov............................. 92,498 73391 30,937 18,945 3,772 19,837 19,007 7,807 6,199 5,001 Dec,.......................... 94 ,’786 74,656 30,961 19,834 3^751 20,110 20,130 7,844 7J44 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 3,666 19,976 18,919 7,754 5,824 5,341 92'519 73,591 30,527 19,369 3,648 20,047 18,928 7,769 5,809 5,350 Apr............................. 93,089 73340 30,635 19,376 3^636 20,193 19,249 7,890 5; 923 5,436 93^917 74,290 30,852 19,442 3,670 20,326 19,627 8,017 6,231 5'379 94,813 75,051 31,208 19’580 3,696 20,567 19,762 8,077 6,334 5,351 July............................ 95’115 75,348 31,364 19,607 3^711 20,666 19,767 8,100 6,346 5'321 Aug............................. 95,684 75,889 31,455 19,755 3,743 20,936 19,795 8,136 6,368 5,291 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 Com­ Sales Con­ Depart­ Furni­ Appli­ Auto­ Total m b e a r n c k ia s l fin co an s. ce u C n r i e o d n i s t fi s n u a m n e c r e 1 Other 1 Total st m or e e n s t 2 s t t u or r e e s s a to n r c e e s d m ea o l b e i r l s e 3 Other 1939 ............................ 4,503 3,065 1 ,079 1,197 132 657 1,438 354 439 183 123 339 1941............................ 6'085 4'480 1 '726 1,797 198 759 1'605 320 496 206 188 395 1945............................ 2'462 1,’776 '745 ’300 102 629 '686 131 240 17 28 270 1960............................ 42,832 37,218 16,672 11,472 3,923 3,670 1 ,481 5,615 2,414 1,107 333 359 1,402 1961............................ 43'527 37,935 17'008 11'273 4,330 3,799 1,525 5’595 2’421 1 ,058 293 342 1,481 1962............................ 48’034 41,782 19^005 12,194 4,902 4,131 L550 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............................ 74,656 65,565 32,155 16,’936 8’549 6,014 1 '911 9,091 n.a. n.a. n.a. 490 n.a. 1966—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 64’613 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. n.a. n.a. 489 n.a. Nov.................. 73^491 65,046 31’978 16’790 8,480 5,881 1 '917 8'445 n.a. n.a. n.a. 490 n.a. Dec.................. 74^656 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 31,967 16,696 8’429 5,965 1 '909 8'632 n.a. n.a. n.a. 485 n.a. Mar.................. 73’591 65,006 32'068 16,593 8 ,'485 5,951 1 '909 8'585 n.a. n.a. n.a. 486 n.a. Apr................... 73'840 65,298 32*299 16,590 8,561 5,951 1,897 8'542 n.a. n.a. n.a. 490 n.a. May.......... 74,290 65,733 32,560 16,615 8,665 5,947 1,946 8,557 n.a. n.a. n.a. 494 n.a. June................. 75,051 66,452 32,'966 16,721 8,826 5,995 1,944 8,599 n.a. n.a. n.a. 502 n.a. July.................. 75’348 66,781 33,235 16,747 8,864 6,009 1,926 8,567 n.a. n.a. n.a. 506 n.a. Aug.................. 75;889 67,273 33^36 16,755 8,991 6,036 1,955 8,616 n.a. n.a. n.a. 508 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

OCTOBER 1967 CONSUMER CREDIT 1799 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair Other Repair End of period Total ch P a u s r e ­ p d ape D r irect g s O p c u o a t o m o p h n d e e e ­ r s r r e l m r t o a n i a o n o i n z n d d s a ­ ­ l s P o o a e n n r a ­ s l End of period Total m A p o a u p b t i e o l r e ­ s g p c u o a o m o p n d e e ­ s r r m i l z o o a a n a d ti n d e o s r n n ­ l s P o o a e n n r a ­ s l 1939............................... 1,197 878 115 148 56 1939....................... 1,079 237 178 166 135 363 1941............................... 1,797 1,363 167 201 66 1941........................ 1'726 447 338 309 161 471 1945............................... 300 164 24 58 54 1945....................... '745 66 143 114 110 312 I960............................... 11,472 7,528 2,739 139 1,066 I960....................... 16,672 5,316 2,820 2,759 2,200 3,577 1961............................... 111273 6,811 3 J00 161 1,201 1961....................... 17,008 5’391 2,860 2,761 2,198 3,798 1962......................... 12,194 7,449 3,123 170 1 452 1962....................... 19’005 6'184 3,451 2,824 2^261 4,285 1963............................... 13,523 8,228 3,383 158 1,754 1963....................... 22,023 7,381 4,102 3,213 2,377 4,950 1964............................... 14’762 8,701 3,889 142 2,030 1964........................ 25,094 8,691 4,734 3,670 2,457 5,542 1965 .............................. 16'138 9,241 4,429 123 2 J45 1965........................ 29,’173 10 J10 5,721 4,266 2,543 6,333 1966.............................. 16,936 9,391 4 ,’829 110 2,606 1966........................ 32,’155 11,370 6,165 5,101 2,’567 6,952 1966 —Aug.. ................. 16,732 9,498 4,632 112 2,490 1966—Aug............. 31,737 11,339 6,172 4,795 2,580 6,851 Sept.................... 16,759 9,427 4,693 112 2,527 Sept........ 31,778 11,313 6,113 4,864 2'593 6,895 Oct.............. 16,771 9'398 4,726 112 2'535 Oct......... 31'878 11'353 6,132 4,910 2'593 6,890 Nov.............. 16’790 9,395 4’736 110 2,549 Nov........ 31,978 11,378 6,157 4,967 2'583 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 16,814 9,285 4,817 109 2,603 1967 Jan............... 32,033 11,267 6,148 5,176 2,532 6,910 Feb.. ................. 16,696 9,215 4,773 107 2,601 Feb.............. 31,967 1^214 6,121 5^218 2,502 6,912 Mar.................... 16,593 9,139 4,744 105 2,605 Mar............. 32,068 11'234 6,153 5'242 2'486 6*953 Apr.................... 16390 9,128 4'749 104 2.609 Apr............. 32,299 11'256 6^217 5,292 2’478 7,056 May................... 16,615 9,150 4,751 105 2,609 May............ 32,560 11,313 6,307 5,342 2’489 7J09 June.................. 16,721 9’238 4,761 106 2’616 32’966 11,414 6,402 5'431 2,505 7,'214 July.................... 16,747 9,252 4,752 108 2,635 July............. 33,235 lb 489 6'451 5,500 2,519 7'276 Aug.................... 16,755 9,200 4,781 107 2; 667 Aug............. 33^536 1^538 6,494 5,556 2^536 7^412 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 19 9 9 4 3 4 5 9 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 73 8 5 1 9 7 1 8 5 2 1 4 2 pape 2 2 3 r 0 6 4 loan 1 1 1 s 4 4 5 7 6 6 4 8 6 3 5 9 End of period Total b C m c a o i n e a m k r l ­ s ­ t O f u i i n c t n t i i s h a o a t e l n i n ­ r ­ s s m t p D o a e r e r n e t ­ ­ t s 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 6,’257 1939............. 2,719 625 162 236 1,178 518 1962. 10’583 2,111 751 815 6’906 1941............. 31087 693 152 275 1 '370 597 1945............. 31203 674 72 290 1’322 845 1963. 11,859 2,394 835 870 7,760 1964. 13’285 2’699 997 933 8’656 1960............. 13,196 3,884 623 941 3,952 436 3,360 1965 14,962 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 1303 1 ,074 10’552 1962............. 15,130 4,690 766 927 4,252 505 3,990 1966- Aug.................. 15,985 3,420 1,266 1 ,063 10,236 1963............. 16,303 5,205 912 895 4,456 520 4,315 Sept.................. 16,076 3,453 1,'278 1,066 10,279 1964............. 171894 51950 1,004 909 4,756 635 4’640 Oct............. 16.143 3’480 1'286 1,065 10,312 1965 ............. 191319 6,587 1,095 968 5 355 723 4,891 Nov................. 16,278 3,517 1,287 1 379 10’395 1966............. 20,130 6J14 1,130 n.a. n.a. 874 5,142 Dec.................... 16,474 3,545 1’303 1 '074 10352 1966—Aug... 18,843 6,718 1,131 n.a. n.a. 916 5,021 1967- Jan.................... 16,315 3,501 1,291 1,062 10,461 Sept... 18,810 6,692 1,122 n.a. n.a, 932 5,003 Feb.................... 16,303 3; 495 U288 1 357 10’463 Oct.. • 18,826 6,656 1,112 n.a. n.a. 898 4,951 Mar.................... 16'345 3'515 1’284 1357 10’489 Nov... 19.007 6,678 1,129 n.a. n.a. 878 5,001 Apr.................... 16,409 3'544 1'283 1,054 10'528 Dec... 20,130 6,714 1,130 n.a. n.a. 874 5,142 May................... 16,558 3,588 1,286 1,076 10,608 June................... 16,765 3,652 1,'291 1385 I0,’737 1967—Jan.... 19,464 6,659 1,120 n.a. n.a. 908 5,213 July.............. 16,799 3,666 1,294 LO84 101755 Feb... 18,919 6,634 1,120 n.a. n.a. 895 5,341 Aug.................... 16,982 3,715 1,310 1,100 10,857 Mar... 18,928 6,647 1,122 n.a. n.a. 898 5,350 Apr... 19,249 6,758 1,132 n.a. n.a. 922 5,436 May.. 19,627 6,848 1,169 n.a. n.a. 939 5,379 Note.—Institutions represented are consumer finance companies, credit June.. 19,762 6,902 1,175 n.a. n.a. 965 5,351 unions, industrial loan companies, mutual savings banks, savings and July.. . 19,767 6,927 1,173 n.a. n.a. 1,024 5,321 loan assns., and other lending institutions holding consumer instalment Aug... 19,795 6,950 1,186 n.a. n.a. 1,057 5,291 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

1800 CONSUMER CREDIT OCTOBER 1967 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OP CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a i t r i o a n n d l oans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.> N.S.A. S.A.1 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-—Aug............. 6,689 7,025 2,431 2,543 1,995 2,023 187 225 2,076 2,234 Sept............................ 6,578 6,189 2 387 2,070 1,958 1,935 175 187 2,058 1,997 Oct................. 6,522 6,403 2 378 2,369 1,941 1,949 166 171 2,037 1,914 Nov............................ 6,657 6,611 2,461 2,346 1,947 2,044 166 168 2,083 2,053 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 Peb............................ 6,*497 5,488 2377 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 Apr............................. 6,495 2,217 2,294 2,095 1,927 170 163 2,124 2,111 May.......................... 6,554 7,062 2,238 2,559 2,032 2,074 180 219 2,104 2,210 June.......................... 6’823 7,458 2^338 2,678 2,081 2 155 190 215 2,214 2,410 July............................ 6,776 6,859 2,266 2,396 2,147 2^071 175 191 2,188 2,201 Aug............................ 6^929 7,223 2,285 2,392 2,212 2,229 175 210 2 257 2 392 Repayments 1Q60. 45,972 16,384 13,574 1,883 14,130 1961....................................... 47,700 16,472 14,246 2,015 14,967 1962....................................... 50,620 17,478 14,939 1,996 16,206 1963...................................... 55,171 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 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 I ’789 Mar............. • • 6,246 6,648 2393 2,'353 1,899 2,042 170 177 1,984 2,076 Apr................................. 6,393 6,246 2’235 2,186 1’968 1,920 179 175 2,011 1,965 May............................ 6’, 361 6,612 2,219 2,342 1,948 2,008 178 185 2,016 2,077 June................................ 6,'531 6,697 2'281 2,322 1,995 2,017 184 189 2,071 2,169 July............................ 6^551 6,562 2’228 2,'240 2,074 2,044 175 176 2,074 2,102 Aug.................... 6,585 6,682 2,240 2^301 2,079 2,081 171 178 2,095 2,122 Net change in credit outstanding 2 I960 3,588 1,270 896 330 1,093 1961....................................... 696 -465 332 53 777 1962...................................... 4,506 2,318 746 55 1,388 1963....................................... 6,124 2,892 1,252 160 1,820 1964...................................... 6,'3 84 2^759 1,736 126 1,763 1965...................................... 8,013 3,647 2,099 142 2,125 1066...................................... 6^091 2,118 2,141 76 1,756 1966--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 Apr..................... 213 249 -18 108 127 7 -9 -12 113 146 May.......................... 193 450 19 217 84 66 2 34 88 133 June................ 292 761 57 356 86 138 6 26 143 241 July............................ 225 297 38 156 73 27 15 114 99 Aug.................... 344 541 45 91 133 148 4 32 162 270 1 Includes adjustments for differences in trading days. sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less repay- the amount of extensions and repayments without affecting the amount ments. outstanding. . For back figures and description of the data, see “Consumer Credit,” Note.—Estimates are based on accounting records and often include Section 16 (New) of Supplement to Banking 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

OCTOBER 1967 CONSUMER CREDIT 1801 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks Sales finance Other financial Retail outlets companies institutions Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.AJ 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 20'474 Il 999 13'525 9'128 1963...................................... 61,295 23,344 12,664 14,894 10,393 1964...................................... 67'505 25,950 14^020 16,251 11^284 1965...................................... 75*508 29’738 15,075 18,120 12,575 1966...................................... 78,896 31,114 14,951 18,986 13,’845 1966—Aug................. 6,689 7,025 2,683 2,819 1,260 1,336 1,589 1,713 1,157 1,157 Sept............................ 6,578 6,189 2'634 2,422 1'242 1'162 1’587 I,’517 1'115 1,088 Oct..................... 6'522 6,403 2,583 2’520 1^226 1'235 1'582 1'505 1'131 1,143 Nov........... 6'657 6,611 2,666 2,495 1^256 1’241 1,613 1,631 1,122 1’244 Dec................... 6,433 7,442 2,553 2,523 1,241 1,374 1'570 1,822 1 ,‘069 1,723 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 2,537 2^31 1 '215 1’032 1'577 lj349 1,168 876 Mar............................ 6,510 6’641 2'558 2'662 1’199 1 ,'229 1398 1 ,'649 1'155 1,101 Apr............................ 6'606 6'495 2'631 2,688 1'212 1,168 1'589 1.559 1’174 1’080 May........................... 6'554 7,062 2,577 2'891 l',193 1,278 1,614 1,728 1'170 1,165 June.......................... 6*823 7,458 2'698 3,004 1'235 1 ^367 1,697 1'875 1'193 1’212 July............................ 6,776 6’859 2’738 2,857 1 '200 1,223 1,601 1,627 1’237 1^152 Aug............................ 6,929 7,223 2; 796 2;945 1 ;203 1,260 i;677 1,775 1 ;253 1^43 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 22^971 13'161 14,825 10,164 1965...................................... 67’495 25,663 13'699 16'443 11,690 1966...................................... 72,805 28,132 14,153 17,474 13,046 1966—-Aug.......... 6,087 6,247 2,362 2,480 1,179 1,189 1,458 1,490 1,088 1,088 Sept............................ 6,103 6,'000 2’396 2^81 1'156 1,135 1’481 1'426 1,070 1,058 Oct..................... 6’142 6' 159 2,400 2'420 1'193 1’223 1’472 C438 1 ;077 1,078 Nov.................... 6^213 6'193 2'415 2,395 1,258 1,222 1,480 1 '496 1'060 1,080 Dec............................. 6,112 6,’277 2,418 2,346 1,198 1 ,’228 1,467 1,626 1 j029 1,077 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 6,246 6’648 2^12 2,561 1,187 1'332 1,540 1,607 1'107 1'148 Apr............................ 6*393 6^246 2,516 2,457 1 J92 1'171 1,536 1,495 1’149 1,123 May........................... 6^361 6,612 2'483 2^30 1,193 1,253 1,540 1,579 1,145 1,150 June........................... 6’531 6,697 2,548 2398 1'234 1'261 1^585 1,668 1' 164 1,170 July............................ 6^551 6,562 2'562 2'588 l'215 1'197 1,564 1,593 1'210 1,184 Aug........................... 6^585 6,682 2,566 2; 644 1,255 1'252 1,578 1 ^592 1^186 I J94 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 1'376 I677 885 1966...................................... 6,091 2,982 798 1,512 799 1966—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 ♦ -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 Anr....................... 213 249 115 231 20 -3 53 64 25 -43 May,....................... 193 450 94 261 ♦ 25 74 149 25 15 June........................... 292 761 150 406 1 106 112 207 29 42 July............................ 225 297 176 269 -15 26 37 34 27 -32 Aug............................ 344 541 230 301 -52 8 99 183 67 49 1 Includes adjustments for differences in trading days. payments for some particular holders do not equal the changes in their 2 Net changes in credit outstanding are equal to extensions less repay­ outstanding credit. Such transfers do not affect total instalment credit ments, except in certain months when data for extensions and repayments extended, repaid, or outstanding. have been adjusted to eliminate duplication resulting from largo 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

1802 INDUSTRIAL PRODUCTION: S.A. OCTOBER 1967 MARKET GROUPINGS (1957-59 = 100) 1957-59 1966 1966 1967 pro- aver- Grouping por- age» tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Total index.................... 100.00 156.3 158.0 157.7 158 9 158 6 159 0 158 1 156.4 156 4 156 3 155,6 155.5 156,5 157.8 Final products, total.......................... 47.35 155.4 156 4 156 3 158 3 158 5 159 2 158 I 156.4 156 7 157.1 156.2 156.6 157.0 158.1 Consumer goods........................... 32.31 147.4 147 I 146 5 148 8 148'8 149 1 147'8 145.2 146 0 146.7 145 8 146.6 147.0 148.2 Equipment, including defense.... 15.04 172.6 176.4 177.4 178> 179.6 18L0 180.2 180.3 179.6 179.4 178.5 178.1 178.4 179.1 Materials........................... 52.65 157,1 159.6 159.2 1 59 9 159.1 158.9 158.0 156.2 155,8 1 55 8 155.0 155.0 156.1 157.1 Consumer goods Automotive products........ 3.21 163.0 146.4 150.7 168 5 162 8 162 6 147.0 135.7 144 6 151 5 145.8 151.4 155.2 161.3 Autos............................................... 1.82 169.5 141.7 148.6 177 8 166.7 167.3 141.3 120.5 136 5 149.6 149.9 156.0 160.7 163,7 Auto parts and allied products........ 1.39 154.4 152.7 153.5 156.2 157.8 156,4 154.4 155.7 155^3 154.1 140.5 145.3 148.0 158,2 Home goods and apparel........... 10.00 153.0 152.8 151.3 153.2 153.2 151.7 151.5 148.2 146.8 145.5 144.1 143.2 143,9 146.3 Home goods................................. 4.59 168.9 168.9 166.0 170.0 169.1 166.5 165.2 162.9 160.4 157.9 158.5 156.6 157.2 163.2 Appliances, TV, and radios......... 1.81 166,6 165.0 159.3 170.2 165,3 158.4 154.0 J53.7 147.1 141.7 143.8 138.6 143,3 155.1 Appliances................................ 1.33 166.7 166.7 160.1 171.7 162.4 151 9 150.2 150.4 143 6 146,0 147.0 149.7 152,2 154.0 TV and home radios............... .47 166.3 160.2 157.1 166.0 173.7 176.7 164.8 162.9 157.2 129.6 135.0 107.3 118,0 158.3 Furniture and rugs....................... 1.26 165.7 168.0 165.9 164 4 164.7 163.5 163.4 158.5 157.4 157,9 157.2 157.3 156,3 156,9 Miscellaneous home goods........... 1.52 174.2 174.2 173.9 174.5 177.1 178.7 179.8 177.3 178,6 177.1 177.1 177,4 174.5 178.1 Apparel, knit goods, and shoes .... 5.41 139.6 139,1 138.8 139 0 139 8 139.1 139 9 135.8 135 4 135 0 131.9 131.9 132.6 Consumer staples.......................... 19.10 141.8 144.2 143.3 143.2 144.2 145.0 145.4 145.2 145.6 146 5 146.8 147.6 147.1 147.0 Processed foods............................... 8.43 126.4 127.9 127.9 126.0 127.3 130.1 130.4 129,9 129.6 129.6 130.3 130.2 129.1 129.5 Beverages and tobacco..................... 2,43 131.7 134.0 131.0 133.1 133.6 133.7 132.9 134.1 133 5 140,4 133.2 136.5 136.3 Drugs, soap, and toiletries............... 2.97 174.4 175.4 176.1 178.7 181.3 178.5 179.0 180,3 181.0 181 4 181.4 182.1 184,0 181,0 Newspapers, magazines, and books. 1.47 136.6 138.2 136.7 137.9 138.8 139.1 141.5 142.3 142.3 143.6 142.5 141.4 142.1 141.8 Consumer fuel and lighting. .... 3.67 159.4 165 0 162 5 161 9 162 4 162 0 161.8 160,1 162 7 161 4 168,9 167.0 Fuel oil and gasoline.................... 1.20 128.6 129.1 131.8 134.0 129.8 129.2 125.5 125.7 128.0 131.9 130,5 134.8 131,6 130.9 Residential utilities....................... 2.46 174.4 182.5 177.4 175.5 178.2 178.0 179.5 176.9 179.6 175.8 184,0 185.6 184.3 Electricity................................ 1.72 186.8 197.9 191.2 188.3 192.2 189.2 191.0 186.9 190.3 186.3 197.6 199.5 197,4 Gas............................................ .74 145.9 Equipment Business equipment......... 11.63 181.2 184.4 185.7 187.2 187.5 189.3 187.4 186.6 184.4 183.8 182.1 181.2 180.8 180.7 Industrial equipment.................. 6,85 172.2 176.3 177.0 178.4 178.1 179.1 177.7 176.8 174.1 173,0 169,1 169.0 169,0 167,7 Commercial equipment........ 2.42 190.0 194.1 194.8 195.5 196.9 196.0 196.7 199,8 199.1 200.7 200.8 200.5 201.1 202.6 Freight and passenger equipment. .. 1.76 208.5 208.1 209.2 212.7 216.9 220.3 214.5 215.0 211.7 210.4 211.7 208.9 210,2 211.0 Farm equipment.............................. .61 167.0 169.1 178.9 180.3 170.7 179.5 176.1 162.6 162.8 160.4 167.6 162.5 148.6 Defense equipment........................... 3.41 Materials Durable goods materials............ 26.73 157.4 160.1 159.8 159.8 158.5 156.4 153.9 151.9 152.2 151.3 150.5 149.3 149.6 150.7 Consumer durable........................... 3.43 170.3 173.6 174.6 176.2 173.8 165.4 154.6 148.4 145.1 143,0 149.7 151,0 141.8 142.6 Equipment........................................ 7.84 180,7 187.9 189.1 189.7 191.0 190.3 190.6 186,5 185.6 183,2 180.9 179.6 181.2 184.0 Construction.................................... 9.17 141.6 140.2 139.8 138.5 138.5 138.2 138.9 139.2 140.4 139,2 137.1 136.5 138.0 138,0 Metal materials n.e.c........................ 6.29 144.4 145.3 142.7 145.2 139.6 139.5 139.6 140.3 135.6 133.9 130.0 129.6 132.2 129.5 Nondurable materials............ 25.92 156.9 159.1 158.6 159.9 159.9 161.4 161.7 160.5 159.4 160.4 159.7 160.9 162.4 163.8 Business supplies.............................. 9.11 148.9 150.1 150.7 151.6 150,9 153.0 153.4 152.1 151.1 152.6 150.1 151.9 151.0 151,7 Containers.................................... 3.03 145.4 143.4 147.4 145.3 147.2 151.1 146.5 147.1 144.6 148.5 146.2 145,2 141.6 142,1 General business supplies............. 6.07 150.7 153.4 152.4 154.8 152.8 154.0 156.8 154,6 154.4 154.6 152.0 155,3 155.7 156.5 Nondurable materials n.e.c.............. 7.40 192.8 195.6 193.8 197.1 198.7 198.1 199.3 197.8 194.6 194.2 196.0 194.9 196.5 198.5 Business fuel and power.................. 9.41 136.3 138.9 138.6 138.7 138.0 139.7 140.1 139.3 139 7 141.4 140.4 143.0 146.7 148.2 Mineral fuels................................ 6.07 122.2 124,9 123.7 124.9 123.1 125.1 124.7 123,5 123.3 125.5 124.3 127.8 134.6 136.9 Nonresidential utilities................. 2.86 173.5 175.9 176.7 174.8 175.7 177.5 179.7 179.3 181.5 182.1 181.3 181.9 179.8 Electricity................... 2.32 174.5 178.2 179.1 176.7 177.8 179.0 181.8 181,3 184.0 184.4 183,6 184.4 181.8 General industrial................. 1.03 171.6 176.3 177.0 177.6 176.7 177.1 178.8 177.4 178.9 179,0 181.4 180.6 182.9 Commercial and other.......... 1.21 184.3 187.5 188.5 183.6 186.4 188.4 192.4 192.8 196.6 197.3 193.7 196,0 189.0 Gas............................................ .54 164.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 166.5 159.6 159.7 169.4 166.5 164.9 157.7 153.5 153.9 155.3 153.3 154.5 156.4 162.4 Apparel and staples.......................... 24.51 141.4 143.0 142.3 142.2 143.3 143.7 144.2 143.1 143.3 143,9 143.5 144.1 143.9 For a short article discussing new benchmark production measures for 1958 and 1963, see pp. 954-57 of June 1967 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 INDUSTRIAL PRODUCTION: S.A. 1803 INDUSTRY GROUPINGS (1957-59 = 100) Grouping 19 p p 5 r o 7 o r - ­ ­ 59 a 1 v 9 e 6 r 6 ­ 1966 1967 age* tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Total index.................................. 100.00 156 3 158 0 157 7 158 9 158 6 159 0 158 1 156 4 156 4 156.3 155 6 155 5 156 5 157 8 Manufacturing, total......................... 86.45 158,7 160.1 160,0 161 5 161.0 161.3 160.1 158 5 158 1 158,2 157.2 156 9 157 6 159.1 Durable........................................ 48 07 165 1 167 1 167 3 169' 1 167 3 167 6 165 5 163'2 162 9 162.8 162 5 161 7 162 4 163 7 Nondurable.................................. 38.38 150.7 1513 150 9 1519 153 I 153*5 153 3 152 4 1520 152.4 150 7 1 50 9 1515 153 5 Mining.............................................. 8,23 120.3 122/l 121:0 12L6 121:0 123^ 123^ 122:4 12116 122.1 120^ 123:5 127^ 127^ Utilities........................................... 5.32 173.4 179.0 177.0 175.2 176,9 177.7 179.6 178.2 180.6 179.2 182.5 183.6 181.9 181.5 Durable manufactures Primary and fabricated metals.......... 12.32 I5I.5 154,2 153.6 153 4 149.9 150.4 147.0 146.3 143 9 142.7 142.8 142,5 142 6 142. 4 Primary metals................................. 6 95 142 7 148 7 146 4 145 0 138 4 136 2 131 9 131 9 129 2 129.1 128 9 128 3 1 29 3 129 0 Tron and steel............................. 5 45 136,2 142 2 139 6 137 5 132:4 130* 1 124,9 124* 8 123 7 122.7 122J) 120 5 1 22 3 123 7 Nonferrous metals and products.. 1.50 166.5 162 J 164^ 168:2 161.7 163^ 163.2 167^ 162:1 161.4 154^ 156.0 154:6 145:2 Fabricated metal products............... 5,37 162.8 161 4 163 0 164 2 164.7 168 7 166.6 165 0 162 9 160,2 160 8 160 8 1 59 7 159 7 Structural metal parts.................. 2.86 158.8 158 8 1586 159 0 160.2 161 4 160.7 160'9 160 1 158,1 1564 156 9 1 56* I 156 3 Machinery and related products....... 27.98 176.5 179,0 179.8 183.4 181.9 182.0 179.6 176.2 177.0 177.1 177.0 176.1 177.5 179.5 Machinery..................................... 14 80 183 8 1 89 6 1 88 8 191 1 1 89 0 1 89 S 1 89 7. 186 4 183 8 181 8 180 s 177 5 1 80 0 183 0 Nonelectrical machinery............... 8.43 1 8L9 186 7 1 886 189 9 1882 190 4 190^7 i 87*3 185*2 183M 1817 181*3 1 82 2 182*2 Electrical machinery.. 6 37 186 5 193 4 189 2 1926 190 1 188 3 187 2 1853 182 0 179 7 178*9 172 5 1 77'1 184 1 Transportation equipment............... 10.19 1 68.3 166 0 168 3 174* 6 172.9 1715 164.6 1594 164 5 167,7 1690 170 8 1 70 8 1711 Motor vehicles and parts............. 4.68 171.3 158 1 164'6 175 7 mi 169 0 151.5 1406 148 0 153,8 1552 157 7 156 7 156 1 Aircraft and other equipment, . . . 5.26 165.2 172^ 171 J 173:? 174.6 173.7 176.0 175:6 178.8 179.8 181 .4 181.8 182,'6 183:8 Instruments and related products. .. 1.71 176.5 177.4 179,5 181.8 181.4 184.6 186.2 183.4 185.8 185,2 185.3 184.1 182.9 183.1 Ordnance and accessories............... 1 .28 Clay, glass, and lumber................... 4.72 132.9 129 8 129 8 128 I 126 6 128 1 129 ? 129 6 ]29 5 130.7 127 H 12 rf 7 127 2 I2S 6 Clay, glass, and stone products....... 2.99 140.7 140^5 141.2 137:8 136.5 136:9 137:2 136^ 134^ 136.0 134:8 133^ 134.0 136:4 Lumber and products...................... 1.73 119.3 111 3 1100 111 3 109 5 112 8 115 7 116 9 120 2 121.5 115 6 114 9 115 5 107 0 Furniture and miscellaneous.............. 3.05 165.0 167 1 16^ 9 165 3 166.3 167 5 166 3 163 9 162 4 162.9 162 3 161 $ 159 1 160 I Furniture and fixtures..................... 1 54 171.9 175*3 173 2 1732 173.9 174.0 172 1 170*6 166 5 166.5 166* 5 1 66 3 16?-' 7 1 65 0 Miscellaneous manufactures............ 1 51 157,9 158 7 158:4 157:2 158.5 160.9 160.3 157.1 158^ 159,2 158,1 156^ 155*4 155'1 Nondurable manufactures Textiles, apparel, and leather........... 7.60 141.6 140 1 140 2 140.9 140.8 141.3 139.8 136 4 134 5 134,2 134.0 133 3 134 5 135 7 Textile mill products........................ 2.90 142 3 1 42' 1 141 7 142 4 141 8 141 4 139 3 1367 134 6 135,1 135 2 135 * 3 136*8 1 38 5 Apparel products............................. 3.59 150.3 1 47 7 1 48 4 148*1 149.3 150 5 150.2 146 4 143*6 141,9 1412 1415 142 3 Leather and products....................... 1.11 111.9 11'6*4 109 9 113'9 110.8 111.1 107.7 103*7 100 5 107,1 105:0 101 9 103 2 Paper and printing............ 8 17 146 3 148 6 147 2 147 9 148 5 147 4 149 0 148 7 149 1 149.3 149 I 148 9 148 7 I so 1 Paper and products.......................... 3'43 152'1 153 1 1512 153*3 15 3 7 152 6 154'0 1^2 4 1524 150 7 1514 1 SO 3 149 3 1 52 0 Printing and publishing............ 4.74 1422 145 3 144 3 144* 1 144:7 1437 145 5 146 1 146 8 148,3 147 4 147 8 148 3 149 0 Newspapers.................................. 1 53 1 34 7 1 37 7 139 1 135 7 1 35 2 133 7 1 33 7 134 8 1 30 9 133 8 133'1 1343 136 1 137 0 Chemicals, petroleum, and rubber,... 11.54 181.7 182.4 182.8 186.1 187.S 187.3 186.7 187.3 186.1 185.8 181.7 182,8 184.4 189.9 Chemicals and products.................. 7 58 193 0 1 94 4 193 5 1 96 9 199 4 198 7 198.6 700 5 1 99 3 199.2 199 7. 199 2 201 7 200.1 Industrial chemicals...................... 384 220 1 22212 220.5 224 I 227 5 228.8 228 5 230*8 227*9 227.2 228 8 226 6 229 0 Petroleum products.......................... 1 97 128 4 128 5 130*6 1312 129 1 129 0 128 7 127*4 13o' | 133.1 1 32 1 1 32,' 8 132 2 134 1 Rubber and plastics products.......... 1 "99 I9L9 190 3 193,6 199*2 202^ 201:6 198:8 196 3 1915 186.9 164.0 169:7 170 1 Foods, beverages, and tobacco.......... 11,07 127. 7 128 5 / 77 9 126 7 128.8 131.0 130.9 !3O s 110 5 132.4 110 9 111 1 1110 110 7 Foods and beverages........................ 10 25 1 28 4 129 2 1 28 5 127 5 1 29.7 132.0 131.9 1313 1317 1 32.7 132 0 131 9 1316 131 2 Food manufactures...................... 8# 64 126 6 127 0 1270 124 9 127.6 130 3 130 4 129* 5 129 7 130,2 130 3 129'9 129*5 129.'0 Beverages...................................... 1 61 1 37* 8 141 1 1 36 4 141 4 141 1 141 0 14o' 2 141 1 1423 146.3 1412 142 9 142 8 Tobacco products............................ 82 119:8 i 19’9 jib^ i 10:9 117:2 119:3 It 8.'5 120 2 11^2 128.8 117:4 123 ,‘9 123.6 Mining Coal, oil, and gas.............. 6 80 117 6 119 7 118 8 119 8 118 4 120 I 119 6 118 9 117 7 118 7 118 0 121 3 127 6 128 5 Coal................................................. 1.16 115 2 120 7 114 7 121 5 114 0 120 7 115 7 115 1 125 5 120 1 122 5 122 6 117 2 Crude oil and natural gas................ 5 64 118 0 11^6 1196 119 5 119*3 119 0 119 3 119 6 118 3 117 2 117 5 121 1 128 7 130 8 Oil and gas extraction.................. 4 91 123 8 125 9 125 8 125* 6 125 2 125 1 1257 125 4 125*3 125 5 125 3 129*0 137 5 141 5 Crude oil................................... 119 4 I'M 2 121 3 121*1 12o' 8 12o' 8 1210 120 0 120 1 119.6 119.6 123'5 133 2 137 6 Gas and gas liquids.................. .66 i31:7 155.5 154.4 154.6 153.3 152.3 155.7 Oil and gas drilling....................... 73 79 2 77 0 77 9 77 9 79 2 78 1 76 3 80 5 71 0 61 8 65 5 67 7 69 0 58 9 Metal, stone, and earth minerals....... 1.43 133.2 133.1 131.4 129.9 133.2 137.1 139.4 138.9 140.0 138.7 130.8 133.6 127.7 122.9 Metal mining................................... 132 7 132 1 133 0 1 34 2 140 3 142 1 143 7 1 49 5 133 9 119 7 105 s Stone and earth minerals................. .82 133.5 133.8 133.5 130 3 133.4 139:3 138:? 136:6 137:2 13o;6 129:2 133 3 133 7 135.8 Utilities Electric............................................. 4 04 179 7 186 5 184 2 181 7 183 9 183 4 185.7 183 7 186.7 185.2 189.6 190.8 188.4 Gas................................................. UM 156.1 157.6 158^ 159:1 159:5 i6o:o 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

1804 INDUSTRIAL PRODUCTION: N.S.A. OCTOBER 1967 MARKET GROUPINGS (1957-59 - 100) 1957-55 1966 1966 1967 Grouping pro- averpor- age^ tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. | May June July Aug. Total index................................... 100.00 156.3 156.8 161 3 163 8 160.2 157 1 156.6 156.8 157. 1 158 0 156.2 159.0 150.5 157.7 Final products, total............... , 47.35 155.4 154.7 161.2 164 2 160 0 157 2 156 8 156. 7 157.2 157 6 155 3 159.8 151.1 157.0 Consumer goods........................... 32.31 147.4 146.0 153 6 157 8 1513 145 5 1457 145.6 146.2 147^0 144^3 150.4 139,9 147.8 Equipment, including defense.... 15.04 172.6 173.5 177.8 179.4 178.'7 182.4 180.6 180.4 180.8 180.3 179.0 180.0 175.3 176.7 Materials.......................................... 52.65 157.1 158.7 161 3 163.1 160.4 157.0 156.4 157.0 157.0 158 4 157.0 158.4 150,0 158.4 Consumer goods Automotive products......................... 3.21 163.0 86.2 153 6 185.4 177 4 165.5 154.6 142.2 151.8 161.9 155 1 162.5 114.2 106.3 Autos............................................ 1.82 169.5 32.6 150 1 202.7 193 4 175 7 155 4 132.6 151.5 167.6 166'4 177.1 94,8 62.2 Auto parts and allied products..... 1.39 154.4 156.9 158.3 162.5 156^3 152.1 153.7 154,8 152.3 154.2 140.3 143.2 139.8 164.4 Home goods and apparel................... 10.00 153.0 152.8 156 2 165.2 156 6 146.5 146.8 153.6 151.0 148 8 144.0 147,9 132.6 147.2 Home goods................................... 4.59 168.9 164.1 174 4 184.6 1765 170.9 162 3 166.5 165.3 159.6 159 8 161.7 145.9 160.5 Appliances, TV, and radios...... 1.81 166.6 149.3 170^9 191.6 173 1 163.1 153.1 167.9 162.6 151.3 152.0 152,8 128.0 144.1 Appliances................................ 1 .33 166.7 145.8 168 i 190 I 163 0 155.2 153 4 166.7 165.1 162.1 159.7 169.9 141.8 139.4 TV and home radios.......... .47 166.3 159.1 178.9 195.9 201 5 185.5 152.3 171.4 155.5 120.7 130,5 104.6 89.3 157.2 Furniture and rugs............... 1.26 165.7 171.0 170.5 173.0 170 8 169.6 159 8 156.6 155.5 153.5 151.2 155.4 148.8 160.5 Miscellaneous home goods..........* 1.52 174.2 175.9 181 7 186.0 1852 181.4 175.3 172.9 176.6 174.4 176 0 177.4 164.6 179.9 Apparel, knit goods, and shoes....... 5.41 139.6 143 3 140 9 148 7 139 8 125 9 133.6 142.6 138,8 139.7 130.6 136.3 121.3 Consumer staples............................ 19,10 141.8 152.4 152.1 149.3 144 2 141.6 143.7 142.1 142.7 143.5 142,7 149,6 148.1 155.0 Processed foods....................,......... 8.43 126.4 138.2 144 5 139.9 132 8 126. 6 123 9 121.5 120 9 121.3 122 5 128.9 128.5 138.8 Beverages and tobacco.................... 2.43 131.7 145.0 134 4 137.1 126*. 3 115.4 117.0 122.7 130.6 141.8 143.0 156,2 142.8 Drugs, soap, and toiletries.............. 2.97 174.4 181.2 179.6 185.0 183 1 177 6 180.8 180.3 181.0 186.8 182,3 190.7 179.4 185.2 Newspapers, magazines, and books. 1.47 136.6 139.9 137.9 137.8 137.0 138.8 140.2 141.7 144.4 144.2 142.1 140.8 140.7 143.5 Consumer fuel and lighting, 3.67 159.4 171 8 164 8 154.1 153 0 165 5 177.2 170.4 168.5 159 0 156 2 162,8 173.8 Fuel oil and gasoline.................... 1.20 128.6 132.9 131 9 130.6 129^0 132.2 130.8 128.8 126.7 125.0 126,2 133.3 133.9 134,7 Residential utilities....................... 2.46 174.4 Electricity................................ 1.72 186.8 209.8 196,2 174.0 172.8 194.5 220.2 206.7 203.6 186,1 178.8 187 5 210.4 Gas............................................ .74 145.9 Equipment Business equipment..................... 11.63 181.2 181.2 186.1 187.5 185.3 189.8 187.3 186.7 186.2 185.4 183.2 184.2 177,4 178.2 Industrial equipment........................ 6.85 172.2 175 8 178 6 177.3 175 6 180.2 177.7 175.9 174.3 172.1 169 3 170.7 167.3 167.2 Commercial equipment.................... 2.42 190.0 194.1 197.7 198.8 200^8 200.3 196.9 198.4 197.3 197.9 198.4 201.1 198.3 202.6 Freight and passenger equipment. .. 1.76 208,5 199.8 206.1 218.0 212.6 218.1 214.5 215.0 218.0 222.0 218.1 217.3 202,8 205.6 Farm equipment.............................. .61 167.0 136.4 167,3 169.1 154,3 174.9 179.3 180.6 183.8 180.1 178.0 173.0 134.9 Defense equipment............................ 3.41 Materials Durable goods materials................... 26.73 157.4 158.4 162.7 163.5 159.6 155.4 153.0 152.3 152.7 153,3 153.3 154.7 144.9 152.1 Consumer durable........................... 3.43 170.3 158 0 174 0 178,8 179,0 173.7 160.0 150,6 149.5 147.3 154 2 152,5 123.4 146.9 Equipment........................................ 7.84 180 7 182.3 187 2 189 1 191.2 193.2 192.3 188.2 187.6 185 2 182 2 181 4 175.6 180.6 Construction.............................. 9.17 141.6 150.0 148 2 146.1 138 2 131.3 128.5 129.5 133.4 137 8 139 2 146.2 143.5 147.7 Metal materials n.e.c....................... 6.29 144.4 141 1 147 0 148.7 140,7 133.4 136.0 141.6 138.9 139,3 137,2 135,0 120.3 125.7 Nondurable materials.............. 25.92 156.9 159.0 159.9 162.6 161.2 158.6 159.8 161.8 161.5 163. 7 160.9 162.2 155.2 165.0 Business supplies............................. 9.11 148.9 149 8 153 9 157.7 153.1 147.9 148.0 151.5 153.4 157.7 152.6 154,6 141.5 152.3 Containers.................................... 3.03 145.4 152.0 152 4 152 7 143 1 134.0 139.2 145.3 145.3 153,8 147.7 153.2 138.1 152.1 General business supplies........ 6.07 150.7 148 8 1547 160.2 158.1 154.8 152.4 154.6 157.5 159.7 155^0 155.3 143.2 152.4 Nondurable materials n.e.c.............. 7.40 192.8 192.7 192.8 198.1 200.7 195.1 198.3 201.8 198.5 201.0 198.9 197,8 185,3 198.5 Business fuel and power.................. 9.41 136.3 141.4 139 9 139.5 137.9 140.1 141.0 140. 3 140.2 140.2 139.0 141 6 144.9 150.8 Mineral fuels................................ 6.07 122,2 123.4 122.3 125.7 124.6 126.9 126.9 127.3 126.1 126.9 124.3 124.8 127.7 135,2 Nonresidential utilities................. 2.86 173.5 Electricity.................................. 2.32 174.5 191 9 188 3 177,8 173.5 175.2 178,9 174.3 178,0 175.7 178.2 187.5 193,9 General industrial............. 1.03 171.6 179.8 179 7 178.0 176.7 175.3 177.9 172.8 178.0 176.7 181.4 184 2 182.0 Commercial and other.......... 1.21 184.3 210.9 204.0 185.4 178.2 182,7 187.6 183.2 186.0 182.5 183.4 198.9 213.0 Gas......................... .54 164.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 166.5 132.0 165.8 184.9 176.9 168.7 159.1 156.5 159.8 160.5 157.8 162.0 132.8 138.2 Apparel and staples.......................... 24.51 141.4 150.4 149.6 149.2 143,2 138.1 141.5 142.2 141.8 142.7 140.0 146.7 142.2 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 INDUSTRIAL PRODUCTION: N.S.A. 1805 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1966 1967 Grouping p p r o o r ­ ­ a 1 v 9 e 6 r 6 ­ tion age" Aug. Sept. Oct, Nov. Dec. Jan. Feb, Mar. Apr. May June July Aug. Total index................................... 100.00 156.3 156.8 161.3 163.8 160,2 157. 1 156.6 156.8 157,1 158.0 156.2 159.0 150.5 157.7 Manufacturing, total......................... 86.45 158.7 158.0 163.6 167.1 163.3 159.2 158.0 158,6 159,0 160.4 158.4 161.2 150.5 158.2 Durable........................................ 48.07 165.1 160.4 169.5 173,2 170,2 168.3 164.7 163,7 164.7 165.1 164.5 166.0 154.7 158.9 Nondurable................................... 38.38 150.7 155.0 156.3 159,6 154.8 147.7 149.7 152.3 151.9 154,4 150.7 155.1 145.3 157.3 Mining.............................................. 8.23 120.3 123,6 122,8 124.3 121.5 122.1 121.3 121.7 120.4 122.1 121,8 123.6 124.5 128.7 Utilities............................................ 5.32 173.4 Durable manufactures Primary and fabricated metals.......... 12.32 151.5 151.2 156.1 156.3 151.8 147.7 146.8 148.2 146.7 146.5 145.0 145.0 135.0 141.6 Primary metals................................. 6.95 142.7 139.5 144.8 146.4 139,8 132.1 134.5 139,4 137.2 136.5 133.4 130.2 117.7 125.1 Iron and steel............................... 5.45 136.2 133.7 139.0 139.6 133.7 126.8 127.4 131.0 129.9 127,6 125.4 120.5 111.9 120.0 Nonferrous metals and products.. 1,50 166.5 160.5 165.9 171.4 161.7 151.1 160.4 169.7 163.9 168,5 162.6 165.7 139.1 143.7 Fabricated metal products............... 5.37 162.8 166,2 170.8 169.1 167.3 167.9 162.6 159.6 159.0 159.4 160.0 164.0 157.3 162.9 Structural metal parts.................. 2.86 158.8 162.8 164.9 163,8 162.6 163.0 157.5 154.5 153.9 153.4 154,8 160.0 156.1 160.2 Machinery and related products........ 27.98 176.5 166.4 180.2 186,7 185.2 185.7 181.0 178.4 180.1 180,0 179.6 180.6 166,9 169. 4 Machinery........................................ 14.80 183,8 183.2 190.0 193.0 189,8 192.2 189.1 188.5 187.1 184.6 182.5 182.2 173.7 177.7 Nonelectrical machinery............... 8.43 181.9 179.8 186.1 186.5 185,2 191.7 190.7 189,9 190,4 188.9 186,2 186.4 177.6 175.5 Electrical machinery..................... 6.37 186.5 187.8 195.2 201.5 196.0 192.9 186.8 186,8 182.7 178.9 177.6 176.7 168.5 180.7 Transportation equipment............... 10.19 168,3 140.5 167.4 180.3 180.0 177.2 168.9 162,3 168.4 171.8 173.5 176. 1 151.4 150.8 Motor vehicles and parts............. 4.68 171.3 106,3 163.7 187.1 183.6 174,7 159,5 146.6 155.2 161.2 165.0 169,8 119.5 115.8 Aircraft and other equipment. . . . 5.26 165.2 169.4 170.4 174.6 177,2 179,8 177.8 176.0 179.7 180.7 180.7 180.9 178.2 180.5 Instruments and related products... 1.71 176.5 178.8 181.5 183,8 184.7 186.8 184.0 182.5 184.9 184.8 183.4 185.9 181.1 184.6 Ordnance and accessories................ 1.28 Clay, glass, and lumber................... 4.72 132.9 142.0 139.3 136,2 126.9 118.1 116.8 120.5 124.3 129.5 130.0 136.7 133.4 137.9 Clay, glass, and stone products....... 2.99 140,7 152,0 149.2 145.4 138.5 129.4 125.5 125,3 130.2 135.5 138.3 144.6 143.8 148,9 Lumber and products...................... 1.73 119,3 124,7 122.1 120.2 106.8 98.7 101.8 112.2 114.2 119,1 115.6 122.9 115,5 118.8 Furniture and miscellaneous.............. 3.05 165.0 171.9 172.0 174.8 174.2 169,7 161.0 158.7 159.4 158.6 158.6 161.8 154.8 164.7 Furniture and fixtures..................... 1.54 171,9 180.2 178.4 179.8 178.8 178.4 168.7 166.3 164.5 162.0 161.5 166.0 160.3 169.6 Miscellaneous manufactures............ 1.51 157,9 163.5 165.5 169.8 169,6 160.9 153.1 150,8 154.2 155.2 155.7 157.5 149.2 159.8 Nondurable manufactures Textiles, apparel, and leather............ 7.60 141.6 143.9 141.1 148.5 141.5 130.0 137.9 143,9 140.1 141.7 135.2 138.0 121,8 138.5 Textile mill products........................ 2.90 142,3 145.7 141.7 146.7 142.5 131.5 140.0 140,8 137.6 142.5 141.9 140.0 124.2 141.3 Apparel products.............................. 3.59 150.3 150,7 149.9 159.9 150.8 137.0 145.7 156.7 152.9 152.5 141 .2 147.9 128.8 Leather and products....................... 1.11 111,9 117,6 111.5 116.7 108,6 103.7 107.2 110.9 105.5 105,0 98.7 100,9 92.9 Paper and printing.. ........................ 8.17 146.3 146,6 149.2 154.9 151.6 144.2 146.1 149.3 150.6 153.5 150.2 150.3 139.8 149.0 Paper and products..................... 3.43 152.1 153.1 153,5 163.3 154.5 140.4 151.7 156.2 153.9 158.2 152,2 154.8 137.4 153.6 Printing and publishing................... 4.74 142,2 141.9 146.0 148.8 149.5 146.9 142.0 144.4 148.3 150.2 148.7 147.1 141.6 145.7 Newspapers.................................. 1.53 134,2 126,0 138.4 145.6 148.7 136.5 123.0 129.4 134.8 142.5 141.9 135.0 118.4 125.4 Chemicals, petroleum, and rubber.... 11.54 181.7 183.3 185.3 189.7 187.8 184.0 185,7 188,8 188.0 190.6 184.0 189.2 177.9 191.8 Chemicals and products.................. 7.58 193.0 194.9 195.3 198.7 200.4 196.3 197.6 201,9 201.7 206.4 202.4 206.3 195.3 202.8 Industrial chemicals.................. 3,84 220,1 218.9 221 6 224.1 230.9 228 8 227.4 234.3 231.3 232.9 231 1 231.1 221.0 Petroleum products.......................... 1.97 128.4 135.3 134.1 132.5 127.4 125/; 124.8 124.9 125.5 127.8 130.8 136.8 139.2 141.2 Rubber and plastics products........... 1 .99 191.9 186.5 198.1 212. 1 200.0 194.5 200.8 202.2 197.4 192.7 166.5 175 6 149.7 Foods, beverages, and tobacco........... 11.07 127.7 139.2 141.8 139.3 131.7 124.5 122.8 122.2 123,3 126.1 127.1 135.0 131.4 140,5 Foods and beverages....................... 10.25 128.4 140,0 143.1 140.2 132.7 126.7 123.3 122.4 124.0 125.9 127.6 135,2 133.1 141.0 Food manufactures...................... 8.64 126.6 137,6 143,8 139.9 133.3 127.0 124.5 122.1 121.3 121.7 122.6 129,0 128.2 138.4 Beverages...................................... 1.61 137.8 152.8 139.1 142,1 129.8 124.8 116.9 124.2 138.7 148.6 153.9 168.1 159.7 Tobacco products............................. .82 119.8 129,7 125.2 127,3 119,5 97.1 117.2 119.6 114.5 128.5 121 6 132,6 109.4 Mining Coal, oil, and gas............................ 6.80 117.6 118.9 118.1 120.8 119.7 121.6 121.6 122.2 119.8 119.6 117.8 118,5 121.4 127.4 Coal................................................ 1.16 115.2 127.0 121.3 132.4 118.7 122.9 118.3 117.1 116,0 126.4 121.3 116.5 99.9 123.3 Crude oil and natural gas................ 5.64 118.0 117.3 117.4 118.5 119.9 121.4 122.3 123.2 120.6 118.2 117.0 118.9 125.9 128.3 Oil and gas extraction.................. 4.91 123.8 122.5 122.5 124.2 126.0 127.8 129.0 129.7 128.5 127.0 125.0 126,7 134.2 138.0 Crude oil................................... 4.25 119.4 118.8 118.9 119.9 120.8 122.0 122.8 123.6 122.5 121.5 120.2 122.3 130.5 134.8 Gas and gas liquids.................. .66 151.7 146.0 145.8 151 4 159.0 164.9 168.5 Oil and gas drilling..................... .73 79.2 81.9 82.7 79.8 78.8 T1.9 77.4 79.4 67.2 58.6 63.3 66,3 69.5 62.6 Metal stone, and earth minerals....... 1.43 133.2 145.6 145.4 140.9 130.0 124.2 119.9 119.4 122.9 134.2 140.9 147.6 139.1 134.7 Metal mining................................... .61 132.7 142.7 145.3 138.5 123.7 120.8 123,5 127.9 127,9 139,0 146.2 151.3 128.1 113.9 Stone and earth minerals................. .82 133.5 147.8 145.5 142.7 134.7 126.8 117.3 113.2 119.1 130,6 136.9 144.9 147.2 150.1 Utilities Electric................,........................... 4.04 179.7 199.S 191.7 176.2 173,2 183.5 196.5 188.1 189.0 180.1 178.4 187.5 200.9 Gas................................................... 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

1806 BUSINESS ACTIVITY; CONSTRUCTION OCTOBER 1967 SELECTED BUSINESS INDEXES (1957-59= 100) Manu­ Industrial production facturing 2 Prices 4 Nonag- Major market groupings Con­ ricul- Freight Major industry struc­ tural car- Total Period groupings tion em­ load­ retail Whole­ Total Final products Mate­ t c ra o c n t ­ s T m p o e l t o n a y t l — ­ t p m E lo e m n y ­ t - P ro a l y ls ­ ings sales 3 s C um on e ­ r m c s o o a m l d e i ­ ty Total s C u o m n e ­ r Equip­ rials Mfg. Min­ Util­ goods ment ing ities 1951.................... 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 63 91.1 106.1 80.2 121.5 76 90.5 96.7 1952.................... 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 67 93.0 106.1 84.5 115.0 79 92.5 94.0 1953.................... 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 70 95.6 111 6 93.6 116.6 83 93.2 92.7 1954.................... 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 76 93.3 101.8 85.4 104.6 82 93.6 92.9 1955.................... 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 91 96.5 105.5 94.8 115.3 89 93.3 93.2 1956.................... 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 92 99.8 106.7 100.2 115.9 92 94.7 96.2 1957.................... 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 93 100.7 104.7 101.4 108.2 97 98.0 99.0 1958.................... 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 102 97.8 95.2 93.5 93.8 98 100.7 100.4 1959.................... 105.6 105.7 106,6 104.1 105.4 106.0 99.7 108.0 105 101.5 100.1 105.1 97.9 105 101.5 100.6 I960.................... 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.3 99.9 106.7 95.3 106 103.1 100.7 1961.................... 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 108 102.9 95.9 105.4 91.2 107 104.2 100.3 1962.................... 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 120 105.9 99.1 113.8 92.4 115 105.4 100.6 1963.................... 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 132 108.0 99.7 117.9 93.3 120 106.7 100.3 1964.................... 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 137 111.1 101.5 124.3 95.5 127 108.1 100.5 1965.................... 143.4 142.5 140.3 147.0 144.2 145.0 114.8 160.9 143 115.7 106.5 136.3 96.6 138 109.9 102.5 1966 *................. 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—-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 93.9 149 114.5 106.2 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 1967—Jan........... 158.1 158.1 147.8 180.2 158.0 160.1 123.0 179.6 126 124.5 114.7 156.2 97.4 150 114.7 106.2 Feb.......... 156.4 156,4 145.2 180.3 156.2 158.5 122,4 178.2 143 124.7 114.1 153.2 95.6 149 114.8 106.0 Mar......... 156.4 156.7 146.0 179.6 155.8 158.1 121.6 180.6 149 124.9 113.5 152.9 95.9 151 115,0 105.7 Apr.......... 156.3 157.1 146.7 179.4 155.8 158.2 122.1 179.2 138 124.7 112.4 151.0 95.9 152 115.3 105.3 May...... 155.6 156.2 145.8 178.5 155.0 157.2 120.2 182.5 154 124.6 111.7 150.1 93.1 151 115.6 105.8 155.5 156.6 146.6 178.1 155.0 156.9 123.5 183.6 164 125.5 112.5 151.7 89.3 155 116.0 106.3 July......... '156.5 r157.O r147.0 '178.4 '156.1 '157.6 '127.6 '181.9 149 '125.5 111.6 '151.4 85.2 '155 116,5 106.5 Aug...... '157.8 '158.1 '148.2 179.1 '157.1 '159.1 '127.5 '181.5 165 126.1 112.9 '155,5 89.7 '155 116.9 106.1 Sept.p.... 156.3 156.6 146.2 179.4 155.7 157.5 125.4 183.0 125,8 111,4 154.0 90.2 156 106.2 1 Employees only; excludes personnel in the armed forces. value of total construction contracts, including residential, nonresidential, 2 Production workers only. and heavy engineering; does not include data for Alaska and Hawaii. 3 F.R. index based on Census Bureau figures. Employment and payrolls: Based on Bureau of Labor Statistics data; 4 Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Note.—Data are seasonally adjusted unless otherwise noted. Freight carloadings: Based on data from Association of American Construction contracts: F. W. Dodge Co. monthly index of dollar Railroads. CONSTRUCTION CONTRACTS (In millions of dollars) 1966 1967 Type of ownership and type of construction 1965 1966 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Total construction, 49,272 50,150r4,323 4,083 4,106 3,461 3,189 2,838 3,300 4,424 4,389 5,095 5,414 4,879 5,104 By type of ownership: Public......................... 16,302 18,152 1,568 1,379 1,607 1,357 1,287 1,113 1,188 1,509 1,498 1,820 2,169 1,989 1,824 Private....................... 32,970 31,998'2,754 2,704 2,499 2,104 1,902 1,725 2,112 2,916 2,891 3,275 3,245 2,890 3,280 By type of construction: Residential building.... 21,247 17,827'1 515 1,261 1,225 1,076 903 937 1,056 1,584 1,627 2,002 2,000 1,829 Nonresidential building, 17,219 19,393 1^729 1,676 1,796 1,424 1,358 1,175 1,430 1,714 1,830 1,808 2,070 1,749 Nonbuilding.......... 10,805 12,930 1,079 1,146 1,086 961 928 726 814 1,127 931 1,285 1,344 1,302 ......... 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

OCTOBER 1967 CONSTRUCTION 1807 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total N fa o rm n­ Buildings Mili­ High­ C v o a n ti s o e n r ­ Total de re n s t i i ­ al Total Indus­ Com­ b O u t i h l e d r ­ Other Total tary way de m ve & e l n o t p­ Other 2 trial mercial ings 1 1956............................ 47,601 34,869 20,178 14,691 3,084 3,631 2,103 5,873 12,732 1,360 4,415 826 6,131 1957........................... 49,139 35,080 19,006 16,074 3,557 3,564 2,435 6,518 14,059 1,287 4,934 971 6,867 1958............................ 50,153 34,696 19,789 14,907 2,382 3,589 2,704 6,232 15,457 1,402 5,545 1,019 7,491 19593 .......................... 55,305 39,235 24,251 14,984 2,106 3,930 2,823 6,125 16,070 1,465 5,761 1,121 7,723 1960...................... 53,941 38,078 21,706 16,372 2,851 4,180 3,118 6,223 15,863 1,366 5,437 1,175 7,885 1961............................ 55,447 38,299 21,680 16,619 2,780 4,674 3,280 5,885 17,148 1,371 5,854 1,384 8,539 1962 4.......................... 59,667 41,798 24,292 17,506 2,842 5,144 3,631 5,889 17,869 1,266 6,365 1,524 8,714 1963 s.......................... 63,423 44,057 26,187 17,870 2,906 4,995 3,745 6,224 19,366 1,189 7,084 1,690 9,403 1964............................ 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1,729 10,590 1965............................ 71,912 49,840 26,266 23,574 5,128 6,745 4,711 6,990 22,072 852 7,554 2,017 11,649 1966............................ 74,371 50,446 23,815 26,631 6,703 6,890 5,014 8,024 23,925 713 8,359 2,173 12,680 1966—’Aug................. 73,369 50,456 23,356 27,100 7,154 6,916 4,944 8,086 22,913 671 8,163 2,190 11,889 Sept.................. 73,981 50,107 22,678 27,429 6,895 7,078 5,317 8,139 23,874 690 8,089 2,148 12,947 Oct.................. 72,255 47,883 21,587 26,296 6,673 6,685 4,911 8,027 24,372 643 8,017 2,203 13,509 Nov................. 71,987 47,096 20,324 26,772 6,876 6,689 5,098 8,109 24,891 612 8,245 2,341 13,693 Dec......... 72,169 46,410 19,844 26,566 6,469 7,027 5,011 8,059 25,759 755 9,058 2,309 13,637 1967—Jan................... 74,836 48,334 19,928 28,406 7,130 7,925 5,426 7,925 26,502 716 9,489 2,302 13,995 Feb................... 74,996 47,960 20,278 27,682 7,054 7,697 5,093 7,838 27,036 763 10,189 2,173 13,911 Mar.r............... 73,084 46,906 20,829 26,077 6,097 7,194 4,883 7,903 26,178 Apr.r............... 71,961 46,042 21,130 24,912 5,579 6,926 4,749 7,658 25,919 Mayr 73,904 47,813 22,107 25,706 6,006 7,093 4,744 7,863 26,091 Juner................ 74,197 48,052 22,885 25,167 5,886 6,683 4,716 7,882 26,145 July r................ 75,906 49,151 23,652 25,499 6,154 6,739 4,748 7,858 26,755 Aug.P......... 76,655 49,780 24,508 25,272 5,977 6,080 5,301 7,914 26,875 1 Includes religious, educational, hospital, institutional, and other build­ 5 Beginning 1963, reflects inclusion of new series under “Public” (for ings, State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” , Note.—Monthly data are at seasonally adjusted annual rates. Be­ 3 Beginning with 1959, includes data for Alaska and Hawaii. _ ginning with 1959, figures are Census Bureau estimates. Data before 4 Beginning July 1962, reflects inclusion of new series affecting most 1959 are joint estimates of the Depts, of Commerce and Labor. private nonresidential groups. NEW HOUSING STARTS (In thousands of units) By area By type of ownership Annual rate, S.A. Government- (private only) underwritten Period Total Non­ Private Non­ p M o e li t t r a o n ­ p m o e li t t r a o n ­ 1- 2- Multi­ Public Total farm Total family family family 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 1,517 1,234 56 227 37 458 349 109 1960............................ 1,296 889 407 1,252 995 44 213 44 336 261 75 1961............................ 1,365 948 417 1’313 974 44 295 52 328 244 83 1962............................ 1,492 1 ,054 439 1’463 991 49 422 30 339 261 78 1963............................ 1 ,642 1,152 490 1 ,610 1,021 53 536 32 292 221 71 1964............................ 1,563 1,093 470 1,529 972 54 505 32 264 205 59 1965............................ 1,510 1,035 475 1’473 964 51 458 37 246 197 49 1966............................ 1,196 '808 388 1,165 779 35 351 31 195 158 37 1,108 1,088 104 69 35 102 69 3 30 2 18 14 3 Sept.................. 1,048 1,020 92 61 31 89 59 2 27 3 13 10 3 Oct............ '845 824 79 51 28 77 54 4 20 3 12 9 3 Nov........... 957 956 75 48 27 73 50 3 20 2 13 10 3 Dec.................. 931 910 62 44 19 60 38 2 20 2 12 10 3 1967—Jan................... 1,111 1,079 62 43 19 59 40 2 17 3 13 10 3 Feb................... 1'149 1,132 63 44 19 61 40 2 19 2 12 9 3 Mar.................. 1 ,094 1 '067 93 63 30 92 67 2 23 1 18 14 4 Apr.................. 1,116 1,099 116 77 38 114 80 4 30 2 16 12 4 1 ^274 1,224 134 92 42 132 87 5 40 2 23 18 5 June................. 1 i233 I '214 132 88 44 125 88 3 35 6 24 19 5 July.................. Pl362 Pl'349 Pl 25 87 38 P125 82 4 38 Pl 20 15 5 Aug............ P1J81 Pl,355 P128 87 41 Pl 25 83 4 38 i»3 23 17 6 Note.—Beginning with 1959, Census Bureau series includes both farm by area or type of structure. Data from Federal Housing Admin, and and nonfarm series developed initially by the Bureau of Labor Statistics. Veterans Admin, represent units started, based on field office reports of Series before 1959 reflect Census Bureau revisions that are not available first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1808 EMPLOYMENT OCTOBER 1967 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Unemploy­ Period i T p n o s o N t p t i a t u . u S l l t a . n i A t o o i . n o n a n - l l N ab N o o t . r S i n . f A o t . r h c e e T l f S a o o b . r A t c o a e . r l Total E In m n p o l n o a y g e r d i- 1 U pl n o e y m ed ­ (pe m r S r a . e t A c e n e . 2 t n t) Total cultural In agriculture 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 75,770 72,895 68,915 3,979 2,875 3.8 1966—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 19673—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 May........... 132’969 53’419 79'645 76,189 73,289 69^637 3,652 2^900 3.8 June............ 133,168 50’704 80,681 77^237 74’147 70,420 3,727 3,090 4.0 July............. 133’366 50’446 80,954 77^505 74,489 70’633 3 856 3’016 3 9 Aug........ 133,645 51,074 81,160 77,701 74,718 70’726 3,992 2’983 3.8 Sept............. 113'847 52^865 81,259 77,803 74^25 70^949 3,676 3',178 4.1 t Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian tabor 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 ri u n f g ac­ Mining c C o o n t n i s o t t n r r a u c c t ­ T ti l o i r c a n n u s & t p i li o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1961................................................... 54,042 16,326 672 2,816 3,903 11,337 2,731 7,664 8 594 1962....................................................... 55^596 16’853 650 2,902 3 906 11,566 2,800 8,028 8’890 1963...................................................... 56’702 16,995 635 2,963 3,903 11,778 2’877 8,325 9,225 1964...................................................... 58,332 17’,274 634 3,050 3 951 12,160 2,957 8,709 9,596 1965...................................................... 60’832 18’062 632 3 186 4 036 12,716 3'023 9,087 10 091 1966....................................................... 63,982 19,’186 625 3,292 4’151 13,211 3 102 9 545 10,871 SEASONALLY ADJUSTED 1966—Sept............................ 64 394 19 337 625 3,260 4 184 13,279 3,118 9 619 10,972 Oct...................................... 64,694 19,422 623 3,239 4*190 13,354 3,120 9,675 11’071 Nov............................................ 65 014 19’498 621 3,241 4 212 13,406 3 132 9^44 11,160 Dec........................................... 65,251 19’,526 623 3 291 4*218 13 416 3,144 9 781 11,252 1967—Jan............................................. 65,564 19,558 625 3,311 4,242 13,515 3,152 9 840 11,321 Feb............................................. 65 ,’692 19 507 624 3 ’352 4’247 13 541 3 165 9 883 11,373 Mar,........................................ 65 749 19 445 624 3 313 4’246 13 557 3,179 9 946 It’439 Apr............................................. 65,653 19,331 620 3^276 4’212 13,572 3,194 9,973 11,475 May................................ 65,639 19,238 617 3,192 4 267 13,609 3,205 9 987 11,524 June............................................ 65,903 19,285 619 3,187 4’266 13,648 3,227 10,035 11,636 July............................................ 65,939 19 169 623 3 231 4 292 13,647 3’234 10'074 11,669 Aug.1’. .............................. 66 216 19’355 605 3,223 4’285 13,656 3,256 10,130 11,706 Sept.p........................................ 66,100 19’174 598 3,228 4,271 13,686 3,265 10,176 11,702 NOT SEASONALLY ADJUSTED 1966—-Sept......................................... 65 017 19,638 634 3 ,540 4 238 13,251 3,127 9,667 10,922 Oct............................................ 65 351 19 640 627 3,466 4,219 13,385 3,117 9,704 11,193 Nov...................................... 65,559 19,625 624 3,328 4 229 13,603 3,116 9,695 11,339 Dec........................................... 66 087 19 534 622 3 146 4’222 14 248 3,125 9 693 11,497 1967—Jan............................................ 64 531 19,333 611 2,947 4,183 13,334 3,114 9,643 11,366 Feb............................................. 64,491 19 297 606 2,863 4’175 13 218 3,133 9,'725 11,474 Mar........................................... 64,843 19,263 607 2’922 4’191 13,332 3^157 9’817 11,554 Apr............................................. 65,215 19’181 614 3 J06 4 174 13,412 3.181 9^963 11,584 May......................................... 65,594 19 J33 618 3.227 4 250 13,503 3,202 10,057 11,604 June.......................................... 66,514 19’382 633 3^407 4 304 13,675 3.253 10,196 11,664 July............................................ 66,129 19,156 636 3,548 4,335 13,629 3’289 10,265 11,271 AugJ’....................................... 66,438 19376 619 3^594 4^332 13,614 3,308 10,262 11,233 Sept, i'......................................... 66,714 19,472 606 3; 502 4,327 13,656 3,275 10^27 11,649 t 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

OCTOBER 1967 EMPLOYMENT AND EARNINGS 1809 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1966 1967 1966 1967 Sept. July Aug.7' Sept." Sept. July Aug." Sept." Total............................................................................ 14,363 14,056 14,225 14,034 14,657 13,996 14,298 14,318 Durable goods.......................................................... 8,448 8,170 8,308 8,148 8,545 8,141 8,205 8,240 Ordnance and accessories................................... 128 151 155 ’153 ’128 149 153 ’154 Lumber and wood products................................. 524 508 507 506 542 531 532 523 Furniture and fixtures.......................................... 385 366 368 370 391 362 374 376 Stone clay, and glass products........................... 511 498 495 491 529 514 515 507 Primary metal industries............................ 1 .108 1,023 1,034 I ,029 1,111 1,036 1 ,038 1 ,032 Fabricated metal products................. 1 ,057 1 '041 1 '048 I ,031 1 '069 1 '030 1 ,046 1 ,042 Machinery.......................................................... 1 ,372 I ’368 1 ,375 1 ,373 1 '365 1,365 1,364 1,366 Electrical equipment and supplies....................... 1 349 I ’265 1,298 1 ,272 1,363 1 '247 1 '292 I ^285 Transportation equipment................................. 1 390 1 ’326 1 ' 408 1 ,311 1,398 1 '294 1 ,'257 1,319 Instruments and related products..................... 279 ’285 ’284 281 '282 '283 ’285 284 Miscellaneous manufacturing industries.............. 345 339 336 331 367 330 349 352 Nondurable goods........................................................ 5 915 5,886 5,917 5,886 6,112 5,885 6,093 6,078 Food and kindred products....................... 1 166 1 185 1,163 1,155 1,301 1 '217 1 ,283 1,289 Tobacco manufactures................................. 68 ’ 76 ' 72 ’ 67 ’ 83 65 ’ 78 ' 81 Textile-mill products......................... 858 834 838 840 865 827 846 846 Apparel and related products............................. 1 240 1 ,220 1,227 1 ,219 1 ,260 1,183 I ,248 1,238 Paper and allied products........................... ’516 '536 ’536 535 '523 '534 542 '542 Printing publishing, and allied industries........... 655 674 675 668 659 671 674 671 Chemicals and allied products..................... 578 585 585 584 579 587 590 586 Petroleum refining and related industries............ 1 16 1 19 1 19 120 119 122 123 123 Rubber and misc plastic products............ 402 362 402 398 405 354 402 400 Leather and leather products............................... 316 295 300 300 318 295 307 302 Note,—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked Average weekly earnings Average hourly earnings (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1966 1967 1966 1967 1966 1967 Sept. July Aug." Sept." Sept. July Aug." Sept." Sept. July Aug." Sept." Total 41.4 40.4 40.7 40.7 114.13 113.65 114.77 116.28 2.75 2.82 2.82 2.85 Durable goods..................................................................... 42.3 41.0 41.4 41.4 123.94 122.40 123.60 125.03 2.93 3.00 3.00 3.02 Ordnance and accessories................. 42.3 41.8 42.4 43.0 135.78 134.05 136.31 140.61 3.21 3.23 3.23 3.27 Lumber and wood products.................... 40.5 39.9 40.0 40,2 94.02 96.64 97.20 97.77 2.31 2.41 2.40 2.42 Furniture and fixtures.............................. 41.3 40.2 40.3 40.4 93.63 92.40 94.89 95.88 2.24 2.31 2.32 2.35 Stone clay, and glass products................ 42.0 41.3 41.5 41.9 116.05 118.01 119.28 1 19.99 2.75 2.83 2.84 2.85 Primary metal industries.......................... 42.5 40.9 41.1 40.9 141.10 136.27 137.83 138.65 3.32 3.34 3.37 3.39 Fabricated metal products........................ 42.7 41.3 41.4 41 .7 125.27 121.66 123.26 125.28 2.92 2.96 2.97 2,99 Machinery............................................... 44.2 42.1 42.3 42.4 136.53 133.24 133.56 134.72 3.11 3.18 3.18 3.20 Electrical equipment and supplies........ 41.2 40.3 40.4 40.3 110.54 Hl. 32 111.35 112.59 2.67 2.79 2.77 2.78 Transportation equipment........................ 42.8 41.4 42.8 42.6 144.41 140.29 143.72 146.28 3.39 3.43 3.43 3.45 Instruments and related products............. 42.1 41.0 41.2 41.2 116.05 116.28 117.14 118.12 2.75 2.85 2.85 2.86 Miscellaneous manufacturing industries... 39.9 39.2 39.4 39.5 89.20 90.79 92.43 93.06 2.23 2.34 2.34 2.35 Nondurable goods........4...0.....1.............3..9......6............3...9....7....... 39.8 99.54 102.03 102.80 104.40 2.47 2.57 2.57 2.61 Food and kindred products..................... 41.1 40.6 40.8 40,6 104.92 108.62 107.53 108.36 2.51 2.63 2.61 2.63 Tobacco manufactures............................. 38.6 38.4 39.1 37.6 83.62 91.44 88.20 87.02 2.08 2.40 2.25 2,22 Textile-mill products............................... 42.0 40.6 41.1 41.5 83.38 81.41 84.05 87.35 1.99 2.02 2.04 2.11 Apparel and related products................ 35.9 35.9 35.8 36.0 67.83 72.16 74.42 74.11 I .90 2.01 2.05 2,07 Paper and allied products......................... 43.4 42.7 42.6 42.8 121.92 123.69 123.98 125.42 2.79 2.89 2.89 2.91 Printing, publishing, and allied industries. 38.9 38.3 38.3 38.5 125.51 124.91 125.90 128.48 3.21 3.27 3,27 3,32 Chemicals and allied products.................. 42.4 41,5 41.4 41,6 127.14 129.48 128.86 130.62 3.02 3.12 3.12 3.14 Petroleum refining and related industries.. 42.0 42.8 42.7 42.2 146.80 156.67 152.37 154.80 3.43 3.61 3.56 3.60 Rubber and misc. plastic products........... 41.9 40.6 41.8 41.7 114.21 105.73 116.34 117.46 2.70 2.63 2.77 2.79 Leather and leather products................... 38.3 38.4 38.3 38.5 74.09 79.75 80.11 79.42 1.96 2.05 2,07 2.09 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

1810 PRICES OCTOBER 1967 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent o H w o n m e e r - ­ F a o u n i e d l l e G a l n e a c d s ­ n F i a n i n u s g h d r s ­ ­ A up p a k p n e a d e r e p l T p t o r i a o r n t n a s ­ ­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d ­ O g a o t n o h d d e s r ship coal tricity opera­ care care recrea­ serv­ tion tion ices 1929....................... 59.7 55.6 85.4 1933. 45.1 35.3 60.8 1941. 51.3 44.2 61.4 64.3 ........... 45.2 88.3 51.2 ...........50,6 47.6 57,3 58.2 1945. 62.7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75.0 67.3 1958. 100.7 101.9 100.2 100.1 100.4 99.0 100.3 99.9 99.8 99.7 100.3 100.1 100.4 100.8 99.8 1959. 101.5 100.3 101.3 101.6 101.4 100.2 102.8 100.7 100.6 103.8 102.8 104.4 102.4 102.4 101.8 1960. 103.1 101 .4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104,9 103.8 1961 . 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101,4 103,0 105.0 107.3 111.3 104.6 107,2 104.6 1962. 105.4 103.6 104 8 105.7 105.6 102.1 107.9 101.5 103,6 107.2 109.4 114.2 106.5 109,6 105.3 1963. 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107,8 111.4 117.0 107.9 111.5 107.1 1964. 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119,4 109.2 114.1 108.8 1965. 109.9 108.8 108.5 108,9 Hl.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 1966--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 1 10.7 116.8 107.4 108.1 105,7 110.7 113.3 119.9 129,4 113.0 117.5 115.7 Oct............... 114.5 115.6 112.2 111.0 1 17.4 108.3 108.0 106,1 111.5 114.3 120.4 130.4 113.3 118.0 115.9 Nov.............. 114.6 114.8 112.6 111.2 117.8 108.9 108.1 106.5 112,0 114.5 120.8 131.3 113,4 118.3 116.0 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.............. 115.0 114.2 113.3 111.8 118.6 11 1.1 108,3 107.3 112.6 114.2 122.2 134.6 114.4 118.9 116.4 115.3 1 13.7 113.6 111.9 119.0 111.0 108.4 107.7 113.0 115.1 122.6 135.1 114.9 119.4 116.6 ............. 115.6 113.9 113.9 112.1 1 19,7 110.8 108,3 107.9 1 13.8 115.5 122.8 135.7 115.0 119.6 116.7 June............. 116.0 115.1 114.1 112,2 119.9 110.5 108,2 108.1 113.9 115.7 123.2 136.3 115.3 119.7 116.9 July.............. 116.5 116.0 rll4.3 112.4 H20.2 111.4 108,3 108.2 113.7 116.2 123.6 136.9 115.5 119.8 117.8 Aug.............. 116.9 116.6 114.7 112.6 120.8 111.7 108,5 108.3 113.8 116.4 124,2 137.5 116.1 120.0 118,8 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Proc­ Period m c t A o i o e m l d s l i ­ ­ F p u r a c o r t m d s ­ e f f a o e s n s e o e d d d d s s Total T t e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e e u tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s . , t ­ e c M a q e h n u r 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 l e n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l s u a ­ 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. 100.6 1959........................... 100.6 97.2 99.9 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.1 100.4 101.2 n.a. 100.8 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. 101.7 1961............................ 100 3 96.0 101.6 100,8 99.7 106.2 100.7 99.1 96.1 95.9 98,8 100,7 102.9 99.5 101.8 n.a. 102.0 1962............................ 100,6 97.7 102.7 100.8 100.6 107.4 100.2 97,5 93.3 96.5 100,0 too.o 102.9 98.8 101.8 n.a. 102.4 1963............................ 100.3 95.7 103.3 100.7 100.5 104.2 99.8 96.3 93.8 98.6 99.2 100.1 103.1 98.1 101.3 n.a. 103.3 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. 104.1 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 n.a. 104.8 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 n.a. 106.8 1966—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. 107.1 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. 107.1 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. 107.2 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. 107.4 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................... 106.2 102.6 112.8 105.8 102.0 117.9 102.6 98.4 95.6 102.6 103.1 109.4 111.1 100.4 103.6 n.a. 107.9 Feb.................. 106.0 101.0 111.7 106.0 102,0 118.0 103.4 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 95.9 103.6 103.6 109.4 111.5 100.6 103.8 n.a. 107,7 Apr.................. 105.3 97.6 110.0 106.0 101.8 115.7 103.3 98.8 95.9 104.1 103.9 109.1 111.6 100.6 103.9 n.a. 108.0 May.......... 105.8 100.7 110.7 106.0 101.6 115.2 104.4 98.8 95.8 104.2 103.9 108.9 111.6 100.8 103.8 n.a. 108.0 June................ 106.3 102,4 112.6 106.0 101.6 115,6 104.0 98.5 95.8 104.7 103.9 108.9 111.6 100,8 103.9 n.a. 109.6 July.................. 106.5 102, 8 113. 1 106.0 101.5 115.2 103.9 98,3 95.8 105.3 104.1 109.0 111.6 100.9 104.2 n.a. 109.7 Aug.................. 106.1 99.2 112. 1 106,3 101.7 114.4 104.7 98.0 97.8 106.1 104,0 109.2 111,8 101,0 104.5 n.a. 110.0 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 PRICES 1811 WHOLESALE PRICES: DETAIL (1957-59= 100) 1966 1967 1966 1967 Group Group Aug. June July Aug. Aug. June July Aug. Farm products: Pulp, paper, and allied products: Fresh and dried produce................... 97,7 114.3 107.9 96.6 Pulp, paper, and products, excluding Grains................................................ 105.6 96.1 92.6 86.1 building paper and board.............. 103.6 104.3 104,6 104.5 Livestock............................................ H2.0 104.9 107.4 106.3 Woodpulp......................................... 98.0 98.0 98.0 98.0 Live poultry..................... • 89.8 85.7 91.9 77.3 Wastepaper........................................ 106.7 76.7 76.2 74.6 Plant and animal fibers...................... 72.3 70.9 70.9 71.4 Paper.................................................. 108.4 109.6 110.9 110.9 Fluid milk. . ...................................... 124.1 121.3 121,3 120.9 Paperboard....................................... 97.2 97.3 97.3 97.3 Eggs.................................................. 108.6 76.0 86.0 82.1 Converted paper and paperboard.. .. 102,8 104,9 104.7 104.6 Hay and seeds................................... 139.2 116.6 117.1 111.6 Building paper and board.................. 92,8 91.5 91.5 91.3 Other farm products.................. 102.5 100.2 99.7 99.3 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 118.9 117.2 116.9 116.8 Iron and steel..................................... 102.7 103,3 103.4 103.5 Meat, poultry and fish........................ 111.1 108.3 109.9 107.4 Steelmill products............................. 105,0 105.7 105.7 105.7 Dairy products................................... 124.0 122.2 122.0 122. 1 Nonferrous metals............................. 120.4 118.7 118.6 118.9 Processed fruits and vegetables......... 102.3 106.5 107.0 107,1 Metal containers............................... 110.1 111.7 III.7 111.7 Sugar and confectionery.................... 110.9 112.7 113.7 113.8 Hardware......................................... 110.1 113.0 113.8 115.2 Beverages and beverage materials.... 106.4 106.3 106.4 106.6 Plumbing equipment.......................... 110.0 110.8 110.0 110.1 Animal fats and oils........................... 120.9 82.4 77.4 83.0 Heating equipment............................ 92.5 92.5 92.6 92.5 Crude vegetable oils........................... 127.5 91.7 86.8 89.8 Fabricated structural metal products. 104.2 104.9 105. 1 105.5 Refined vegetable oils......................... 118.4 93.5 88.3 91.9 Miscellaneous metal products........... 112.3 113,7 113.8 H4.2 Vegetable oil end products................. 108.7 101.6 101.3 101.0 Miscellaneous processed foods....... 114.1 112.6 113.1 112, 1 Manufactured animal feeds................ 133.6 122.4 123.2 119.6 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 118.3 121.8 121.9 122.0 Construction machinery and equip... 118.9 121.9 122. 1 122.4 Cotton products................................. 103.3 99.7 98.9 98.8 Metalworking machinery and equip.. 119.5 123.6 123.9 124.4 Wool products.................................... 106.6 103.2 103,3 102.9 General purpose machinery and Man-made fiber textile products........ 89.6 85.8 85.5 85.9 equipment....................................... 110.6 113.1 113.2 113.6 Silk yarns............................................ 156.7 167.0 168.4 172.6 Special industry machinery and Apparel............................................... 105.2 106.7 107.1 107.3 equipment (Jan. 1961= 100)........... 112.9 116. 1 116.3 116.7 Textile housefurnishings..................... 104.3 105.3 105.3 105.3 Electrical machinery and equip...... 99.1 101.8 101.7 101.6 Miscellaneous textile products........... 121.2 118.0 117.1 116.0 Miscellaneous machinery................... 106.6 109.1 109.1 109.4 Hides, skins, leather, and products: Furniture and household durables: Hides and skins.................................. 141.2 95.8 93.4 86.8 Leather.............................................. 124.9 110.2 109.5 109.2 Household furniture. ........................ 109.4 112.4 112.6 112.8 Footwear........................................... 119.1 121.5 121.4 121.2 Commercial furniture........................ 105.8 111,9 111.9 HI.9 Other leather products,...................... 116.0 113.3 112.9 112.5 Floor coverings................................. 96.6 93.1 92.9 92.6 Household appliances........................ 88.8 90.0 90.1 90.1 Fuels and related products, and power: Home electronic equipment......... 83.1 82.0 81.8 81.8 Other household durable goods..... 112.1 115.9 116.6 117.9 Coal................................................... 98.5 102.4 103.0 130.0 Coke........................................... 112.0 112.0 112.0 112.0 Gas fuels (Jan. 1958=100)................. 128.9 134.3 131,8 132,0 Honmetallic mineral products: Electric power (Jan. 1958= 100)......... 100.3 100,5 100.6 100.5 Crude petroleum................................ 97.7 98.3 98.4 99.0 Flat glass............................................ 99.7 103.3 104.5 106.9 Petroleum products, refined............... 100,7 103.1 103,3 104.6 Concrete ingredients.......................... 103.8 105.9 106.0 106.0 Concrete products............................. 103.3 105.7 105.8 105.8 Chemicals and allied products: Structural clay products excluding refractories..................................... 108.7 109.7 109.9 110,4 Industrial chemicals............................ 95.8 97.2 97.2 97.1 Refractories. ...................................... 103.9 104.9 104.9 104.9 Prepared paint.................................... 106.8 108.8 108.8 108.8 Asphalt roofing.................................. 97.6 88.3 91,6 91 .8 Paint materials................................... 90.5 91.0 90.9 90.7 Gypsum products............................ 102.7 100.9 100.7 100.7 Drugs and pharmaceuticals................ 94.7 94.1 94.1 93.6 Glass containers.............. 99.2 101.0 101.1 101.1 Fats and oils, inedible. ...................... 105.5 79.5 77.1 77.2 Other nonmetallic minerals............... 101.8 102.2 102.2 101.8 Agricultural chemicals and products.. 101.9 105,1 103.5 101.8 Plastic resins and materials................ 89.1 90.3 90.0 89.5 Other chemicals and products....... 106.8 108.5 108.7 108.7 Transportation equipment: Rubber and products: Motor vehicles and equipment......... 100.5 101.4 101.3 101.3 Railroad equipment (Jan. 1961= 100). 101.0 102.9 102.9 102.9 Crude rubber..................................... 88.8 86.2 85.7 84.8 Tires and tubes.................................. 93.9 84.0 94.0 98.7 Miscellaneous rubber products........... 99.0 101.5 101.6 102.3 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition......................... 104.9 105.3 105.6 105,8 Lumber.............................................. 110.2 108.0 108.3 109.0 Tobacco products............................ 110.3 114.8 114.8 114.8 Millwork............................................. 110.9 111.7 112.1 112.6 Notions............................................ 100.8 100.8 100.8 100.8 Plywood............................................. 90.0 87.6 89.4 90.9 Photographic equipment and supplies 108.6 110.1 HO. t 111,3 Other wood products (Dec. 1966= 100) 102.0 102,0 101,6 Other miscellaneous products........... 105.5 108.0 108.3 108,5 Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classi­ incorporate (1) new weights beginning with fan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1812 NATIONAL PRODUCT ANO INCOME OCTOBER 1967 GROSS NATIONAL PRODUCT (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 II HI IV I II Gross national product............................... 103.1 55.6 124,5 284.8 560.3 590.5 632.4 683.9 743.3 736.7 748 8 762,1 766 3 775 1 Final purchases...................................... . 101.4 57.2 120.1 278.0 554,3 584.6 626.6 674.5 729.9 722.6 737 4 743 6 759.2 774 6 Personal consumption expenditures.............. 77.2 45.8 80.6 191.0 355.1 375.0 401.2 433.1 465.9 461 6 470 1 413 8 480 2 489 7 Durable goods.................................. 9.2 3.5 9.6 30 5 49 5 53.9 59.2 66,0 70 3 68 2 70 9 70 6 69 4 72 5 Nondurable goods...................................... 37.7 22.3 42.9 98.1 162.6 168,6 178.7 191 2 207 5 207 I 209 5 2103 214.2 217.2 Services........................................ 30.3 20.1 28.1 62 4 143 0 152.4 163.3 175,9 188.1 1863 189.8 192 9 196.6 200 0 Gross private domestic investment.......... 16.2 1.4 17.9 54 1 83.0 87.1 94.0 107.4 118.0 118 5 116 4 122.2 110 4 105 1 Fixed investment.............................. 14.5 3.0 13.4 47.3 77.0 81,3 88.2 98.0 104.6 104 5 104.9 103.7 103 3 104 6 Nonresident ial...................................... 10.6 2.4 9. 5 27.9 51. 7 54.3 61.1 71.1 80.2 78 7 81.2 82.8 81.9 81. 5 Structures................................. 5.0 .9 2.9 9.2 19.2 19.5 21.2 25.1 27.9 27 5 28 2 27.7 27.7 26.3 Producers’ durable equipment............ 5.6 1.5 6.6 18.7 32.5 34.8 39.9 46.0 52.3 51.2 53 J 55.1 54.2 55.2 Residential structures............................. 4.0 .6 3.9 19.4 25.3 27.0 27.1 27,0 24 4 25,8 23.7 20.9 21.4 23.1 Nonfarm...................................... 3.8 5 3,7 18.6 24 8 26 4 26 6 26.4 23 8 25 3 23 2 20.4 20 9 22.5 Change in business inventories.......... 1.7 — 1.6 4.5 6.8 6.0 5.9 5.8 9.4 13.4 14.0 11*4 18.5 7. 1 0 5 Nonfarm............................................... I 8 -1.4 4.0 6.0 5 3 5.1 6 4 8.4 13 7 14 4 12 0 19 0 7 3 0 6 Net exports of goods and services.................. 1.1 .4 1.3 1.8 5.1 5.9 8.5 6.9 5.1 5.4 4.6 4.3 5 3 5.3 Exports............................................... 7.0 2 4 5.9 13.8 30 3 32.3 37 I 39.1 43 0 42 5 43 7 44 0 45.3 45 1 Imports...................................................... 5.9 2.0 4.6 12.0 25 1 26.4 28 6 32 2 379 37 1 390 39*7 39.9 39 8 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 117.1 122.5 128.7 136.4 154.3 151.2 157.7 161.7 170.4 175.0 Federal.., ...................................... 1.3 2.0 16.9 18.4 63.4 64.2 65.2 66.8 77.0 74.9 79.5 81.5 87.1 89.5 National defense.................. 13.8 14.1 51.6 50.8 50.0 50.1 60.5 58 4 63.0 65.6 70.2 72.5 Other,...................................... 3.1 4.3 11.8 13.5 15.2 16.7 16.5 16 6 16,6 15 9 16.8 17.0 State and local........................................... 7.2 6.0 7.9 19.5 53.7 58.2 63.5 69.6 77.2 76.2 78,1 80,2 83.3 85.4 Gross national product in constant (1958) dollars.................................... 203.6 141.5 263.7 355.3 529.8 551.0 581.1 616.7 652,6 649.3 654.8 661.1 660.7 664.7 Note.—Dept of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For hack data and explanation of series, sec the Survey of Current Business, July 1967, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 II HI IV I II National income............................................ 86.8 40.3 104.2 241.1 457.7 481.9 518.1 562.4 616.7 610.4 622.1 634.1 636.4 641.6 Compensation of employees........................... 51.1 29.5 64.8 154.6 323.6 341.0 365.7 393.9 435.7 430.7 441.2 450.2 459.1 463.4 Wages and salaries.. ............................. 50.4 29.0 62,1 116.8 296.1 311.1 333.7 359.1 394.6 390.2 399.6 407.4 414,7 418.3 Private................................................... 45.5 23.9 51.9 124.4 240.1 251.6 269.4 289,8 316.7 313.8 320.1 326.1 331.4 333.2 Military................................................... .3 .3 1.9 5.0 10.8 10.8 11.7 12.1 14.7 14.2 15.1 15.8 16.1 16.2 Government civilian............................... 4.6 4.9 8.3 17.4 45.2 48.6 52.6 57,1 63.2 62.2 64.3 65.6 67.3 68.9 Supplements to wages and salaries......... .7 .5 2.7 7.8 27.5 29.9 32.0 34.9 41.1 40.5 41.6 42.7 44.4 45.2 Employer contributions for social in­ surance........................................ .1 J 2.0 4.0 13.7 15.0 15.4 16.2 20.3 20.0 20.6 21.1 22.2 22.3 Other Jabor income................................. .6 .4 .7 3.8 13.9 14.9 16,6 18,6 20.8 20.5 21.1 21.7 22.2 22.9 Proprietors’ income....................................... 15.1 5.9 17.5 37.5 50.1 51.0 52.3 56.7 59.3 59.3 59.2 58.6 57.8 57.8 Business and professional.......................... 9.0 3.3 11.1 24.0 37.1 37.9 40.2 41.9 43.2 43.3 43.3 43.4 43.2 43.4 Farm.......................................................... 6.2 2.6 6.4 13.5 13.0 13.1 12.1 14.8 16.1 16.0 15.9 15.1 14.6 14.3 Rental income of persons.............................. 5.4 2.0 3.5 9.4 16.7 17.1 18.0 19.0 19.4 19.3 19.4 19.6 19.8 20.0 Corporate profits and inventory valuation adjustment............................................... 10.5 -1.2 15.2 37.7 55.7 58.9 66.3 74.9 82.2 81.3 81.9 84.6 78.1 78.3 Profits before tax....................... 10.0 1.0 17.7 42.6 55.4 59.4 66.8 76.6 83.8 83.6 84.0 83.9 79.0 78.9 Profits tax liability.................................. 1.4 .5 7.6 17,8 24.2 26.3 28.3 31.4 34.5 34.5 34.6 34.6 32.5 32.5 Profits after tax...................... a.6 .4 10.1 24.9 31.2 33.1 38.4 45.2 49.3 49.2 49,4 49.3 46.5 46.5 Dividends........................................ 5.8 2.0 4.4 8.8 15.2 16.5 17.8 19.8 21.5 2t.fi 21.6 21.2 22.2 23.1 Undistributed profits.......................... 2.8 -1.6 5.7 16.0 16.0 16.6 20.6 25.4 27.8 27.6 27.8 28.2 24.2 23,4 Inventory valuation adjustment................. .5 -2.1 -2,5 -5.0 .3 -.5 -.5 -1.7 -1.6 -2.3 -2.2 .7 -.8 -.7 Net interest................................................... 4.7 4.1 3.2 2.0 11.6 13.8 15.8 17.9 20.2 19.8 20.4 21.1 21.6 22.1 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

OCTOBER 1967 NATIONAL PRODUCT AND INCOME 1813 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billipns of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 II III IV I II 103.1 55.6 124.5 284. 8 560.3 590.5 632.4 683.9 743.3 736.7 748.8 762.1 766.3 775.1 Lew Capital consumption allowances...... 7.9 7.0 8.2 18.3 50.0 52.6 56.1 59.9 63.5 63.1 63.9 64.7 65.5 66.4 Indirect business tax and nontax lia­ bility. ............................................ 7.0 7.1 11.3 23.3 51.5 54.7 58.4 62.2 65.1 64.7 65.9 67.0 67.9 69. 1 Business transfer payments................. .6 .7 .5 .8 2.1 2.3 2.5 2.6 2.7 2.7 2.7 2.8 2.8 2.8 Statistical discrepancy......................... .6 .4 1.5 .5 - .3 -1.3 -2.0 -2.6 -2.2 -3.2 -3.8 -4.0 -2.8 Plus: Subsidies less current surplus of gov­ ernment enterprises........... —. 1 .1 .2 1.4 .8 1.3 1.2 2.2 2.0 2.7 2.6 2.3 2.0 Equal;; * National income........ . 86.8 40.3 104.2 241.1 457.7 481.9 518.1 562.4 616.7 610.4 622.1 634.1 636.4 641.6 Less: Corporate profits and inventory valu­ ation adjustment........................... 10. 5 —1.2 15.2 37.7 55.7 58.9 66.3 74.9 82.2 81 .3 81.9 84.6 78.1 78.3 Contributions for social insurance.... .2 .3 2.8 6.9 24.0 26.9 27,9 29.7 38.2 37.4 38.9 39.8 42.2 42.5 Excess of wage accruals over disburse­ ments ............................................ Plus' Government transfer payments....... .9 1.5 2.6 14.3 31.2 33.0 34.2 37.2 41.2 39.2 41.3 44.7 48.1 48.6 Net interest paid by government and consumer.. ■ ............................... 2.5 1.6 2.2 7.2 16.1 17.6 19.1 20.4 22.3 22.0 22.4 23.2 23.7 23.9 Dividends.......................................... • 5.8 2.0 4.4 8.8 15.2 16.5 17.8 19.8 21.5 21.6 21.6 21.2 22.2 23.1 Business transfer payments. ............... .6 .7 .5 .8 2.1 2.3 2.5 2.6 2.7 2.7 2.7 2.8 2.8 2.8 Equals: Personal income................................ 85.9 47.0 96.0 227.6 442.6 465.5 497.5 537.8 584.0 577.3 589.3 601.6 612.9 619.1 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 57.4 60.9 59.4 65.6 75.2 74.1 76.9 79.6 80.2 79.1 Equals; Disposable personal income.............. 83.3 45.5 92.7 206.9 385.3 404.6 438.1 472.2 508.8 503.3 512.4 522.0 532.7 540.0 Pew" Personal outlays.................................. 79.1 46.5 81.7 193.9 363.7 384.7 411.9 445.0 479.0 474.6 483.2 487.4 493.9 504.0 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 355.1 375.0 401.2 433.1 465.9 461.6 470.1 473.8 480.2 489.7 Consumer interest payments........... 1.5 .5 .9 2.4 8.1 9.1 10.1 11.3 12.4 12,3 12.5 12.9 13.1 13.3 Personal transfer payments to for­ eigners ...................................... .3 .2 .2 .5 .5 .6 .6 .7 .6 .7 .6 .6 .7 1.0 Equals? Personal saving................................. 4.2 -.9 11.0 13.1 21.6 19.9 26.2 27,2 29.8 28.7 29.2 34.6 38.8 36.0 Disposable personal income in constant (1958) dollars............................................... • • 150.6 112.2 190.3 249.6 367.3 381.3 407.9 434.4 456.3 452.6 458.4 463.2 470.6 474.9 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.p Total personal income........................ 537.8 584.0 589.1 594.1 597.5 602.1 605.0 610.4 612.6 615.6 616.5 618.2 622.6 626.7 631.2 Wage and salary disbursements......... 359.1 394.6 399.8 401.9 404.8 407.6 410.0 413.8 414.2 416.2 416.7 417.2 420.9 423.1 426.6 Commodity-producing industries... 144.5 159.3 161.2 162.2 163.2 164.1 164.9 166.2 165.2 165.6 165.0 164.3 165,2 165.8 167.5 Manufacturing only..................... 115.6 128.1 130.0 130.8 132.1 132.S 132.8 133.7 132.7 132.9 132.5 132.2 133.0 132.9 134,9 Distributive industries.................... 86.9 93.9 94.8 95.0 95.9 96.5 97.2 98.4 98.6 99.1 99.1 99.3 100.4 101.3 101.9 Service industries....................... 58.3 63.5 64.3 64.7 64.9 65.6 65.9 66.4 66.9 67.6 68.2 68.6 69.5 69.6 70.1 Government................................... 69.3 77.9 79.4 80.1 80.8 81.4 82.0 82.7 83.4 84.0 84.5 85.0 85.7 86.4 87.0 Other labor income........................... 18.6 20.8 21.1 21.3 21.4 21.7 21.9 22.1 22.2 22.4 22.6 22.8 23.1 23.3 23.6 Proprietors’ income........................... 56.7 59.3 59.2 59.2 58.3 58.6 58.8 58.3 57.8 57.4 57.7 57.8 57.9 58.4 58.9 Business and professional............... 41.9 43.2 43.3 43.4 43.3 43.5 43.5 43.3 43.2 43.1 43.3 43.4 43.6 43.7 43.8 Farm.............................................. 14.8 16.1 15.9 15.8 15.0 15.1 15.3 15.0 14.6 14.3 14.4 14.4 14.3 14.7 15.1 Rental income.................................... 19.0 19.4 19.4 19.4 19.5 19.6 19.7 19.7 19.8 19.9 20.0 20.0 20.1 20.2 20.2 Dividends.......................................... 19.8 21.5 21.5 21.7 21.6 21.6 20.2 21.8 22.3 22.6 22.8 23.1 23.3 23.5 23.6 Personal interest income.................... 38.4 42.4 42.8 43.3 43.8 44.3 44.8 45.0 45.2 45.5 45.8 46.0 46.1 46.4 46.7 Transfer payments............................. 39.7 43.9 43.8 45.8 46.6 47.4 48.5 49.7 51.1 51.7 51.0 51.5 51.6 52.1 52.1 Less: Personal contributions for social insurance.......................... 13.4 17.9 18.4 18.4 18.6 18,7 18.8 20.0 20.0 20.1 20.1 20.1 20.3 20.4 20.5 Nonagricultural income...................... 518.4 563.1 568.3 573.4 577.5 581.9 584.8 590.2 593.0 596.2 596.9 598.8 603.2 606.9 610.8 Agriculture income............................. 19.3 20.9 20.8 20.7 19.9 20.2 20.3 20.2 19.6 19.5 19.5 19.5 19.4 19.8 20.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR SECOND QUARTER, 1967—SEASONALLY ADJUSTED ANNUAL RATES (In billions of dollars) Private domestic nonfinancial sectors Financial sectors Sector H h o o u ld se s ­ B n u es s s i­ an g S d o t v a lo t t s e c . al Total G IL ov S t . . Total M a o u n t e h ta . ry C ba o n m k l s . N f o in n a b n a c n e k R w e t s o h t r e ld o f se A ct l o l rs Di a s n c c re y p­ an s d N a v i a n i t n v l. g e st­ ment Transaction category u s u s u s u s u s u s u s u s u s U S u s U 1 Gross saving........................... ........ 123.6........ 75.9 ........ —4.3 ......... 195.1........ -16.3 ........ 4.0 * 2.0.... 2.0 —2 1 180*7 3.6 .... 182.8........ 1 2 Capital consumption.......... ------ 68.1 ........ 56.2 ........ 124.4 ....... 1.1 . . .5 ..................6 .. 125 5 125.5........ 2 3 Net saving (1—2)............... ......... 55.4 ........ 19.7 ... -4.3 ........ 70.8........—16.3 ........ 2.8 * 1 4 - 14 .. —2 1 55 3 57.3........ 3 4 Gross investment (5+10)....... 122.2 ........ 74.2........ —11.9 ...... 184.6 ........ -15.7........ 2.6........ * 1.8........ .7........ .1....1..7..1.5 ........ 5.7 .... 177.1........ 4 5 Private cap. expend., net....... 91.1........ 85.3........ 176.4 ........ .8........ .2........ .6........ 177.2 177.2........ 5 6 Consumer durables............. 72.1........ 72.1 ......... 72 1 72.1........ 6 7 Residential constr............... 14.7........ 8.4........ 23.1........ 23 1 23.1........ 7 8 Plant and equipment.......... 4.3........ 76.4........ 80.7........ .8......... 2.........6........ 81 5 81.5........ 8 9 Inventory change................ .5........ .5........ 5 .5........ 9 10 Net financial invest. (11—12). 31.1........ —n.o........ —11.9 ...... 8.2........ -15.7........ 1.8........ * 1ft........ .2........ .1 —5.7 5.7 .... -.1........ 10 11 Financial uses, net................. 52.5........ 6.8........ 4.7........ 64.0........ -35.2........ 54.0........ 2.7......... 20.6........ 30.6........ 8.6........ 91.3 ... 8.5........ 11 12 Financial sources.................... ........ 21.4 ........ 17.8 ........ 16.6........ 55.8 ..........-19.5 ____ 52.2 ........ 2.7 ........ 19.0 ........ 30.4 ........ 8.5 . 97.0 8.6........ 12 13 Gold & off. U.S. fgn. exch.. 1.7........ 17... .1 1.7 1.7 1.7 . 13 14 Treasury currency............. ..................9 .5........ 5 .. .5 .9 4 14 15 Dem. dep. and currency... ..................3 ........ 5 1 . . . -4.8 1.9 .3 16 Private domestic............. 7.5........ .6........ 2.1........ 10.2........ 1.7 10.5 2 6 . 8.6 1.7........ 11.8 10.5 1 3 . . 16 17 U.S. Govt....................... -12.4...... ..........—12.7 3 0 . -15.8 -12.4 -12.7 — 3 17 18 Foreign.......................... ........ 2.4 ........ 1 . . 2.4 2.4........ ........ 2 4 ...... 18 19 Time and svgs. accounts... 40 1........ 42.6........ 1.3 46.3 13........ . 46 3 ....... 19 20 At co ml. hanks,............. 19.8........ -.9........ 3.4........ 22.3........ ♦ ........ 24.7 ........ 24.7 2.4........ ... 24 7 ........... 20 21 At svgs. instit... ....... 20.3........ 20.3........ 1.3 21.6 1.3 21.6 . 21 6 ........ 21 22 Life insur. reserves............. 5.1........ 5,1........ ..................1 ........ 5.0 ........ 5.0 ........ 5 1 ........ 22 23 Pension fund reserves....... 14.0........ ........ 4.1 14.0 4.1 ........ 1.7 ........ 8.2 ........ 8.2 ... 14 0 ........ 23 -5.2 -5.2 -2.4 -2.8 -2.8 -2.4 -5.2 -5.2 ........ 24 25 Credit mkL instr........ -11.3 18.1 -6.0 32.7 -1.0 12.4 -18.2 63.2 -.8-24.0 56.3 -1.5 3.0........ 28.9 .1 24.5 -1.6 5.2 4.7 42.5 42.4 ................... 25 26 U.S. Govt, securities.... —3.9 —7.6 . — 9 2 .. .. -20.7........ ........ —24 0 —5 5........ 2 9 —1 3........ —7.0.......2..1........ • .. —24 0 ........ 26 27 State and local oblig..... —10........ .7........ -.2 12.1 -.5 12.1 12.5........ 12.1........ .4........ ........ 12.1 ........ 27 28 Corp, and foreign bonds. 1.1 .... ........ 13.5 8 0 ■ - - ■ 9.1 13.5 4.3 -.4 ..................1 4.3 -.5 .6 1.0 ...... 14 0 ........... 28 29 Corp stocks .. ....... —6.4 ... ........ 19 -6.4 1.9 9.1 1.5 9.1 1.5 .5 * ......... 3.3 ........... 29 30 1- to 4-family mortgages. -1.1 10.9 ..................8 4 • - -.7 11.7 1.1........ 12.5 1.3 2.6........ 10.0 1.3 ........ 13.0 ................... 30 31 Other mortgages............. ........ 1.3 ........ 5 4 ........ 6.7 .8........ 6 0........ 1.1........ 4.9____ ........ 6.7 ................... 31 32 Consumer credit.............. ........ 4 2 .9........ .9 4.2 3.3........ 2 0........ 1.3........ ........ 4 2 ........... 32 33 Bank loans n.e.c.............. ........ 6 ........ 7 9 ......... 8.5 10.8 2.3 10 8........ ........ 2.3 ........ 10.8 ........... 33 34 Other loans.................... 1.2 * 3.2.. .4 * 4.7 -2.7........ 3.3 -6.1 .1 1 7........ 1.5 -6.1 2.0 3.8 2.5 2.4 — 1 ........... 34 35 Open market paper... • 3.2 ♦ 3.2 3.2 .3 .1.......1. 7 ...... 1.4 .3 2.0 1.6 ........ 5 1 ............. 35 36 Federal loans ........ ..................1 ..................9 .4......... 1.4 -2.8........ ........ -6.4 ........ -6.4 ....................2 ..2....... -2.8 ........... 36 37 Security credit..................... 3.0 2.9 3,0 2.9 -5.5 -5.4 —7.2........ 1.7 -5.4 * * ........ -2.5 ........... 37 38 To brkrs. and dealers.... 3.0 3.0........ -8.4 -5.4 —8.4........ * -5.4 * ........ -5 4 ........... 38 ........ 2.9 ......... 2.9 2.9........ 12........ 1.7........ * ......... 2.9 ........... 39 ..........—24.5 2 ....... .2 -24.5-24.9........ ........ -1.3 ........ —.3 ........ -1.1 -24.7 -25.9 — 1.1 . ........... 40 41 Trade credit........................ 8.3 8.2 1 8.3 8.3 2.3 .9 .3........ .3........ 10.8 9.2 — 1 6 .. ........ 41 42 Equity in noncorp, business —7 5 ... ........ -7 5 -7.5 -7.5 ........ -7.5 ........... 42 1.5 .4 4.8 9.0 6.3 9.4 .6 1.0 3.0 5.7 ........ 4 1.7 1-7 1.2 3.6 -1.5 2.0 8.4 18.1 9.7 ..... 43 44 Sector discrepancies (1 —4)... 1.3........ 1.7....... 7.6........ 10.6........ -.6........ 1.4........ * .1.......1..2........ -2.2.......9..2........ 9.2 .... 5.7........ 44 i Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. Ioans to banks. F.R. float, and stock at F.R. Banks. 1814 FLOW OF FUNDS OCTOBER 1967 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FLOW OF FUNDS 1815 2. SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) Transa o c r t io se n c t c o a r tegory, 1962 1963 1964 1965 1966 II 1 H 96 I 5 IV I II 1966 III IV I 1967 II I. Saving and investment 1 Gross national saving....................... 134.5 144.5 160.3 179.0 192.6 176.2 178.9 184.5 189.4 191.2 191.9 198.0 186.4 182.8 I 2 Households.................................. 82.0 85.8 98.3 106.6 114.2 101.5 110.2 111,8 112.3 110.7 113.6 120.1 123.4 123.6 2 3 Farm and noncorp, business....... 13.1 13.5 14.5 14,8 15.5 14.7 14.9 15.0 14.8 15.7 15.8 15.8 16,6 17.2 3 4 Corporate nonfin. business...... 41.8 43.9 50,5 55.7 60.3 54.6 56.1 57.8 58.8 59.2 59.8 63.5 58.6 58.7 4 5 U.S Government........................ -4.8 -.6 -4.3 —. 9 3.2 -4.8 -1.2 1.2 1.5 -1.9 -4.5 -12.6 -16.3 5 6 State and local govt..................... -1.4 -1.5 -1.4 -1.4 -1.3 -1.0 -1.5 -.2 .3 .6 .3 -3.0 -4.3 6 7 Financial sectors......................... 3.8 3.5 2.7 3.3 3.3 3.6 3.5 2.6 2.6 3.8 3.9 2.7 3.3 4.0 7 8 Gross national investment................ 133.9 143.8 158.0 177.2 190.1 173.9 177.8 184.1 188.3 188.5 190.3 193,6 180.9 177.1 8 9 Consumer durable goods............. 49.5 53.9 59.2 66.0 70.3 64.2 66.1 68.6 71,6 68.2 70.9 70.6 69.4 72.1 9 10 Business inventories............ 6.0 5.9 5.9 9.4 13,4 8.8 9.4 9.9 9.9 14.0 11.4 18.5 7.1 .5 10 11 Gross pvt. fixed investment......... 77.0 81.3 88.2 98.0 104.6 96.3 98.8 102.4 105.3 104.5 104.9 103.7 103.3 104.6 11 12 Households............................. 21.9 22.4 22.9 23.2 22.8 23.0 23.2 23.6 23.8 23.5 22.8 20.7 18,7 19.0 12 13 Nonfinan. business.................. 54.4 57.9 64.5 74.1 81.1 72.4 74.7 78,4 80.5 80.0 81.7 82.6 83.7 84.8 13 14 Financial sectors...................... .6 1.0 .9 .8 .7 .9 .9 .5 .9 .9 ,4 .4 .8 .8 14 15 Net financial investment.............. 1.3 2.8 4.7 3.7 1.8 4.6 3.5 3.2 1.6 1.8 3.0 .8 1.1 -.1 15 16 Discrepancy (1-8)............................ .7 .6 2.3 1.9 2.5 2.3 1.1 .5 l.t 2,6 1.6 4.4 5.5 5.7 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 54.2 58.5 67.0 72.1 71.1 72.3 61.2 78.« 84.1 82.9 63.5 53.7 72.2 43.9 17 18 Loans and short-term securities.... 15,0 19.0 26.4 33.0 27.8 33.1 21.2 41.1 26.8 21.1 26.7 36.9 33.8 -19.8 18 19 Long-term securities and mtgs........ 39.2 39.5 40.6 39.1 43.2 39,2 40.0 37.7 57.4 61.8 36.8 16.8 38.4 63.7 19 By sector 20 U.S. Government............................ 7.9 5.0 7 J 3.5 6.7 1.4 -4.5 8.2 14.9 2.8 7.0 2.2 10.1 -24.0 20 21 Short-term mkt. securities........... .7 1.4 4.0 3.5 2.2 3.6 -3.5 8.3 1.3 -12.7 6.3 14.1 12.7 -41.0 21 22 Other securities............................ 7.3 3.6 3.0 4.5 -2.3 -1.0 —. 1 13.6 t5.5 .8 -11.8 -2.5 16.9 22 23 Foreign borrowers.......................... 2.1 3.3 4.4 2.6 (.4 1.6 1.0 2,7 2.3 2.4 .1 ,9 4.6 4.7 23 24 Loans......................................... 1.1 2.2 3.7 1.9 1.0 t.l .2 1.9 1.0 2.0 .2 .8 3.5 3.8 24 25 Securities...................................... 1.0 1,1 .7 .8 .4 .6 .8 .8 1.3 .3 1.0 1.0 25 26 Pvt. domestic nonfin. sectors....... 44.2 50.2 55.6 66.0 62.9 69.2 64.7 67.8 66.9 77.8 56.3 50.5 57.5 63.2 26 27 Loans........................................... 13.3 15,5 18.7 27.7 24.6 28.4 24.5 30.9 24.5 31.8 20,2 22.0 17.6 17.4 27 28 Consumer credit...................... 5.5 7.3 8.0 9.4 6.9 9.6 9.3 8.9 9.2 7.0 6.9 4.6 4.3 4.2 28 29 Bank loans n.e.c........................ 4.8 5.4 6.5 13.6 10.8 12.4 11.2 16.7 9.0 17.4 7.9 8.8 7.9 8.5 29 30 Other loans............................. 3.0 2.7 4.2 4.7 6.9 6.4 4.1 5.3 6.2 7.4 5.4 8.6 5.4 4.7 30 31 Securities and mortgages............. 31.0 34.7 36.9 38.3 38.3 40.8 40.1 37.0 42.5 46.0 36.1 28.5 39.9 45.8 31 32 State and local obligations..... 5.0 6.7 5.9 7.4 5.9 8.6 6.8 8.1 5.4 7.2 4.8 6.2 9.5 12.1 32 33 Corporate securities.................. 5.1 3.6 5.4 5.4 11.4 7.0 7.4 2.9 11.9 15.2 11.7 6.9 14.0 15.3 33 34 1- to 4-family mortgages........... 13.0 15.2 15.7 16.0 12.5 15,5 16.2 16.5 15.2 14.0 11.3 9.5 9.8 11.7 34 35 Other mortgages...................... 7.9 9.3 10.0 9.5 8.5 9.7 9.8 9.5 10.0 9.6 8.4 6.0 6.5 6.7 35 36 Net sources of credit (= line 17).. ., 54.2 58.5 67.0 72.1 71.1 72.3 61.2 78.8 84.1 82.9 63.5 53.7 72.2 43.9 36 37 Chg. in U.S. Govt, cash balance.. 1.3 -.4 .2 -1.0 -.5 -.9 -10.4 2.1 -5.1 8.9 -1.8 -4.0 -2.3 -12.7 37 38 U.S. Govt, lending................. 3.3 2.7 3 8 4.7 7.5 6 4 3.1 3.9 11.3 10.0 6.6 1.9 4.3 -.8 38 39 Foreign funds............................. 2.2 1.9 2.5 .4 -.8 '5 -.9 .27 -1.7 4.6 -4.0 -1.8 2.1 10.0 39 40 Pvt. insur. & pension reserves.... 9.0 10.1 11.1 11.6 12.8 12.0 12,0 11.7 12.9 11.2 13.5 13.4 11.9 13.3 40 41 Sources n.e.c.............................. 4.0 4.7 5.4 7.5 8.1 8.8 3.6 7.5 11.6 3.8 13.2 3.9 .2 .7 41 42 Pvt. domestic nonfin. sector's..... 34.4 39.5 44.1 48,9 43.9 45.5 53,8 50.9 55.1 44.4 36.1 40.2 56.0 33.4 42 43 Liquid assets........................... 31.4 37.4 33.0 43.3 24.0 35.2 44.3 49.1 33.4 26.7 10.3 25.4 56.0 39.3 43 44 Deposits............................... 30.1 34.4 35.3 40.4 22.5 31.5 43.4 48.6 27.7 27.3 13.4 21.6 59.0 51.5 44 45 Demand dep. and currency 2,1 5.9 6.5 7.8 2.9 2.6 8.7 16.8 2.8 3,5 -2.5 7.5 9.7 8.9 45 46 Time and svgs. accounts... 28.1 28.5 28.8 32.6 19.6 28.9 34,7 31,8 24.8 23.8 15.9 14.0 50.2 42.6 46 47 At commercial banks.... 15.0 13.4 13.0 19.5 12.3 16.6 21.5 18.1 15.1 19.0 10.6 4.6 33.7 22.3 47 48 At savings instlt............. 13.0 15.1 15.S 13.1 7.3 12.3 13.2 13.6 9.7 4.8 5.3 9.4 16.4 20.3 48 49 Short-term U.S. Govt. sec... 1.3 3.0 -2.3 2.8 1.5 3.7 .9 .5 5.8 -.6 -3.1 3.9 -3.8 -12.1 49 50 Other U.S. Govt, securities.... .4 1.7 3.1 .2 6.6 3.5 -1.0 -I J 7.2 6.9 8.7 3.6 -9.6 -8.5 50 51 Pvt. credit mkt instruments... 2.5 2.3 7.8 6.1 13.1 6.1 10.4 5.9 13.1 10.4 20.1 8.8 8.0 2.4 51 52 Less security debt.................... -.2 2.0 -.2 .6 -.3 -.7 -.2 3.0 -1.3 -.4 2.9 -2.3 -1.6 -.2 52 IH. Direct lending in credit markets 53 Total funds raised........................... 54.2 58.5 67.0 72.1 71.1 72.3 61.2 78.8 84.1 82.9 63.5 53.7 72.2 43.9 53 54 Less change in U.S. Govt, cash.... 1.3 -.3 .2 -1.0 -.5 -.9 -10.4 2,1 -5.1 8.9 -1.8 -3.9 -2.4 -12.7 54 55 Total net of U.S. Govt, cash.......... 52.9 58.8 66.9 73.1 71.5 73.2 71.6 76,7 89.2 74.0 65.3 57.6 74.7 56.6 55 56 Funds supplied directly to cr. mkts., 52.9 58.8 66.9 73.1 71.5 73.2 71.6 76.7 89.2 74.0 65.3 57.6 74.7 56.6 56 57 Federal Reserve System.............. 1.9 2.6 3.2 3.8 3.3 4.1 3.1 2.4 2.5 .1 6.3 4.3 2.7 57 58 Total................................ 2.0 2.9 3.4 3.8 3.5 3.8 4.3 1.2 2.1 2.1 6.0 3.7 4.5 3.0 58 59 Less change in U.S. Govt. cash. .1 .3 .2 ♦ .2 -.3 1.2 -1.2 -.4 2.0 -.3 -.7 1.8 3.0 59 60 Commercial banks, net.......... 18.2 19.7 21.8 29.2 18.9 21.3 29.9 40.2 22.9 29.9 10.0 12.8 42.9 37.3 60 61 Total....................................... 19.5 19.4 22.3 29.0 18.3 22.7 18.4 43.9 18.3 37.1 8.4 9.5 39.5 21.7 61 62 Less chg. in U.S. Govt. cash... 1.2 -.6 -1.0 -.6 -.6 -11.6 3.3 -4.7 6.9 -1.5 -3.3 -4.2 -15.8 62 63 Security issues...................... .1 .3 .6 .8 J 2.0 J .4 A .3 * * ,8 .1 63 64 Nonbank finance, net.................. 23.8 28.0 28.9 27.2 21.9 27.2 27.0 26.6 26.8 15.6 22.6 22.7 25.8 33.1 64 65 Total.............................. 28,5 34.4 33,4 32.9 25.0 37,7 24.1 34.7 34.4 23.8 16.6 25.2 27.6 24.7 65 66 Less credit raised.................... 4.7 6.4 4.4 5.6 3.0 10.5 -2.9 8.2 7.5 8.2 -6.0 2.5 1.8 -8.4 66 67 U.S. Government....................... 3.3 2.7 3.8 4.7 7.5 6.4 3.1 3.9 11.3 10.0 6.6 1.9 4.3 -.8 67 68 Foreign............................... 1.5 .9 .6 -.2 -1.4 .2 -1.8 1.4 -1.6 1.4 -2.8 -2.7 2.8 5.2 68 69 Pvt. domestic nonfin.................... 4.3 5.1 8.8 8.5 21.5 14.0 10.4 2.3 27.4 17.0 22.7 18.6 -3.9-18.0 69 70 Households............................. -1.7 .4 3.4 2.5 10.8 11.6 3.7 -2.1 It.9 10.3 15.0 6,1 -9.1 -11.3 70 71 Business................................... 2.3 3.1 1.6 1.0 3.3 -2.6 4,4 1.7 6.1 .9 3.7 2.4 .5 -6.0 71 72 State and local govts................ 3.6 3.5 3.6 5.5 7.0 4.3 2.1 5.7 8.0 5.4 6.9 7.7 3.2 -1.0 72 73 Less net security credit........ -.2 2.0 -.2 .6 -.3 -.7 -.2 3.0 -1.3 -.4 2.9 -2.3 -1.6 -.2 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. 1967 relative to the Aug. Bulletin tables in financial data. Financial These tables reflect revisions in income and product accounts for 1964-67 revisions will appear with publication of the third-quarter data. published in the July Survey of Current Business but are unrevised before For other notes see p. 1817. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1816 FLOW OF FUNDS OCTOBER 1967 3, PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1965 1966 1967 Transa o c r ti s o e n c t c o a r tegory, 1962 1963 1964 1965 1966 If III IV I II in IV I II I. Demand deposits and currency 1 Net incr. in banking system liability. . 4.5 5.8 7.4 7.6 2.5 1.7 -.1 21.1 -3.6 14.1 -5.4 4.9 6.2 .3 1 2 U.S. Govt, deposits........ ............. 1.3 -.3 .2 -1.0 -.5 -.9 -10.4 2.1 -5.1 8.9 -1.8 -3.9 -2.4 -12.7 2 3 Other.............................................. 3.2 6.1 7.3 8.6 3.0 2.6 10.3 19.0 1.5 5.2 -3.6 8.8 8.7 13.0 3 4 Domestic sectors........................ 3.1 6.0 6.8 8.5 3.2 3.1 9.6 18.3 1.4 4.0 -1.8 9.1 10.6 10.5 4 5 Households............................ 2.7 4.3 6.7 7.2 2.1 .9 6.1 15.4 -3.4 2.6 .5 8.9 12.3 7.5 5 6 Nonfinancial business............ -.9 -.8 -2.5 ~1.9 .7 -3.1 -4.5 -.6 4.0 1.6 -.7 -2.0 -4.2 .6 6 7 State and local govts.............. .9 2.4 1.4 1.0 1.5 4.6 3.2 .7 1.4 3.1 .6 .9 1.8 2. 1 7 8 Financial sectors.................... 1.1 .2 .3 .7 .3 .5 .9 1.5 -1.4 .5 .7 1.6 .9 1.7 8 9 Mail float,............................. —. 6 -.1 .9 1.5 - 1.5 4.0 1,3 .8 -3.7 -2.9 -.3 -.3 -1.3 9 10 Rest of the world...................... . 1 . 1 , 5 . 1 -.2 -.5 .7 .8 . 1 1.2 -1.9 -.3 -2.0 2.4 10 —^—_^—-^—————*—— ____ IL Time and savings accounts 11 Net increase—Total........................... 28.7 29.5 30.4 32.9 20.3 29.5 34.4 32.2 24.3 25.3 16.2 15.2 51.8 46.3 11 12 At commercial banks—Total........ 15.6 14.3 14.5 20.0 13.2 17.6 21.4 18.4 14.9 20.9 11.2 5,8 35.1 24.7 12 13 Corporate business............... 3.7 3.9 3.2 3.9 -.7 5.7 2.5 .9 4.1 1.7 -3.9 -4.6 10.0 -.9 13 14 State and local govts,................ 1.0 1.6 1.7 2.4 1.4 1.1 3.1 3.3 -.3 2.3 1.9 1.9 5.7 3.4 14 15 Foreign depositors.................... . 6 1.0 t .4 . 6 .9 .8 .2 .5 -.2 2.0 .6 1.2 1.2 2.4 15 16 Households................................ 10.3 7.9 8.2 13.3 11.6 9.8 15.8 13.9 11.3 15.0 12.6 7.4 18.0 19.8 16 17 At savings institutions.................. 13.1 15.2 15.9 12.9 7.1 11.9 13.0 13.8 9.4 4.4 5.0 9.4 16.7 21.6 17 18 Memo: Households total.................. 23.4 23.0 23.9 26.4 18.9 22.1 29. 1 27.6 21.0 19.8 17.9 16.7 34.4 40.1 18 III. U.S. Govt, securities 19 Total net issues.................................. 7.9 5.0 7.1 3.S 6.7 1.4 -4.5 8.2 14.9 2.8 7.0 2.2 10.1 -24.0 19 20 Short-term marketable.................. .7 1.4 4.0 3.5 2.2 3.6 -3.5 8.3 1.3 -12.7 6.3 14. 1 12.7 -41,0 20 21 Other............................................ 7.3 3.6 3.0 . 1 4.5 -2.3 -1.0 -.1 13.6 15.5 .8 -11.8 -2.5 16.9 21 22 Net acquisitions, by sector.......... 7,2 5.9 7.1 3.5 6.7 1.4 -4.5 8.2 14.9 2.8 7.0 2.2 10.1 -24.0 22 23 Federal Reserve System................ 1.9 2.8 3.5 3.7 3.5 4.2 4.3 .5 2.4 1.8 6.8 3.1 4.8 2.9 23 24 Short-term......................... 2.0 4.9 2.1 3.7 5.4 6,2 -.3 -3.6 5.2 -3.5 6.9 13.0 2.5 -7.9 24 25 Commercial banks......................... 1.4 -2.6 .4 -2.3 -2.8 -10.2 -1.7 5,3 -1.9 .5 -5.7 -4.2 18.0 -1.3 25 26 Short-term marketable............... -5.2 -3.5 3.9 -1.7 -4.6 -5.7 2.4 7.2 -10.7 -4.9 -2.9 9.4 -11.3 26 27 Other direct.............................. 5.2 .5 -4.1 -1.4 1,0 -5.3 -6.1 -2.3 8.3 -.9 -2.0 -1.6 6,0 5.1 27 28 Nonguaranteed.......................... 1.4 .3 . 6 .8 .8 .8 2.1 .4 .5 6.3 -3.8 .3 2.6 4.9 28 29 Nonbank finance........................... 1.6 -.5 2.0 -.8 .6 -.8 -5.9 1.5 4.0 -4.3 4.4 -1.9 -1.4 -7.0 29 30 Short-term marketable............... .8 -1.3 1.2 -.3 1.3 -.1 -4.4 3.2 3.0 -2.8 4.8 .4 2.8 -9.6 30 31 Other direct............................... ,6 .6 .5 -.7 -1.1 -1.4 -2.1 -1.5 .1 -1.8 -.5 -2.3 -5.0 1.1 31 32 Nonguaranteed.......................... ,2 .3 .3 .3 .4 .7 .5 -.1 .9 .4 .1 .8 1.4 32 33 Foreign.......................................... 1.3 .6 .5 -.2 -2.6 .9 -1.0 1.5 -2.6 -1.5 -4.0 -2.3 2.1 2.1 33 34 Short-term.................................. 2.2 -.6 . 1 -.4 -.8 —. 1 -1.5 1.8 -1.7 -.1 -2.1 .7 2.6 .8 34 35 Pvt. domestic nonfinan. sector. . .. 1.7 4.7 .8 3.0 8. 1 7.2 -.2 -.6 13.0 6.2 5.6 7.5 -13.4 -20.7 35 36 Short-term marketable.............. .9 1.8 -3.2 2.2 .9 3.3 .3 -.3 5.4 -1.3 -3.4 3.0 -4.7 -13.0 36 37 Other direct.............................. -.1 1.0 2.8 -1.1 2.4 .5 -2.3 -1.3 3.3 -3.6 6.0 4.0 -7.8 -7.2 37 38 Nonguaranteed.......................... . 5 .7 .4 1.3 4.2 3.0 1.3 .2 3.9 10.5 2.7 -.4 -1.9 -1.3 38 39 Savings bonds—Households.... .4 1.2 .9 . 6 .6 .4 .5 .8 .3 .7 .3 .9 .8 .9 39 IV, Other securities 40 Total net issues, by sector................. 11.5 13.1 14.6 16.2 18.6 20.0 16.6 14.9 20.3 23.3 18.3 12.4 26.9 27.9 40 41 State and local govts..................... 5.0 6.7 5.9 7.4 5.9 8.6 6.8 8.1 5.4 7.2 4.8 6.2 9.5 12.1 41 42 Nonfinancial corporations............. 5. 1 3.6 5,4 5.4 11.4 7.0 7.4 2.9 11.9 15.2 11.7 6.9 14.0 15.3 42 43 Commercial banks........................ .3 ,6 .8 2.0 .1 .4 .1 .3 .8 .1 43 44 Finance companies....................... .3 1.4 2.1 1.9 .8 1.8 1.5 2.7 1.6 .3 1.9 -.8 1.5 -.5 44 45 Rest of the world.......................... 1.0 1.1 .7 .8 .4 . 6 .8 .8 1.3 .3 ♦ .1 1.0 1.0 45 46 Net purchases................................................ 11.5 13.1 14.6 16.2 18.6 20.0 16.6 14.9 20.3 23.3 18.3 12.4 26.9 27.9 46 47 Households.................................. -1.7 -2.9 1.8 .6 3.1 2.4 3.5 -.8 4.7 8.8 -1.2 -3.9 -6.3 47 48 Nonfinancial corporations............. -.4 .9 .2 .7 .8 .7 .8 .8 .8 .8 .7 .8 .7 .7 48 49 State and local govts............. 2.0 2.5 2.7 2.7 5.2 1.5 3.3 3.3 4.2 6.6 5.3 4.8 5.9 7.8 49 50 Commercial banks........................ 4.4 5.2 3.6 4.9 1.7 6.5 4.1 4.1 3.3 5.0 1.2 -2.5 9.5 12.1 50 51 Insurance and pension funds...... 7.5 7.6 7.3 9.7 9.5 9,6 10.7 9.4 11.0 8.4 9.7 8.8 12.7 10.3 51 52 Finance n.e.c............................... -.3 -.2 -.8 — 1.9 -2.8 .3 -4.9 -1.6 -4.7 .5 -8.0 .9 -.9 -1.0 52 53 Security brokers and dealers.. . . .4 .2 ♦ — .4 -.4 .6 -2.8 -2.1 2.6 -4.2 2.3 - .8 -.8 53 54 Investment cos., net................... -.8 -.5 -.8 -1.5 -2.5 -.3 -2.1 -1.8 -2.6 -2. 1 -3.9 -1.4 -.1 -.2 54 55 Portfolio purchases.,............ I. I .8 1.1 1.6 1.4 1.9 1.3 2.3 2.5 1.1 -.2 2.0 3.0 1.3 55 56 Net issues of own shares....... 1,9 1.2 1.9 3.0 3.8 2.2 3.5 4.0 5. 1 3.2 3.7 3.4 3.2 1.5 56 57 Rest of the world.......................... .1 .3 -.1 -.4 .9 -1.0 -.9 .1 .7 2.0 .4 .4 .5 1.1 57 V. Mortgages 58 Total net lending............................... 21.3 25.0 25.4 25.4 20.0 25.4 25.7 25.8 25.6 22.4 17.9 14.3 17.0 19.7 58 59 1- to 4-family................................ 13.4 15.7 15.4 16.0 11.6 15.7 16.0 16.3 15.6 12,9 9.5 8.3 10.4 13.0 59 60 In process................................... .4 .5 -.3 -.1 -.9 .2 -.2 -.2 .4 -1.1 -1.8 -1.2 .6 1,3 60 61 Disbursed.................................. 13.0 15.2 15.7 16.0 12.5 15.5 16.2 16.5 15.2 14.0 11.3 9.5 9.8 11,7 61 62 Other,.......................................... 7.9 9.3 10.0 9.5 8.5 9.7 9.8 9.5 10.0 9.6 8.4 6.0 6.5 6.7 62 63 Net acquisitions............................................. 21.3 25.0 25.4 25.4 20.0 25.4 25.7 25.8 25.6 22.4 17.9 14.3 17.0 19.7 63 64 Households.................................... -.3 -.1 -.6 -.6 -1.1 . 1 -2.5 .3 1.0 1.1 -.2 -1,1 64 65 U.S. Government.......................... .3 -1.0 .3 1.0 3.4 1.0 .7 1.5 4.6 4.1 3.0 1.9 2.5 1.9 65 66 Commercial banks........................ 4.0 4.9 4.5 5.6 5.0 5.6 6.4 5.8 5.3 5.3 5.0 4.5 2.0 3.6 66 67 Savings institutions........................ 13,2 16.1 14.8 13.0 6.6 13.0 13.1 12.8 11.4 7.2 3.7 4.0 6.8 10.2 67 68 Insurance....................................... 3.0 4.0 5.1 5.5 5.2 5,5 5.1 5.3 6.0 5.8 5.5 3.7 4.9 3.4 68 69 Mortgage companies..................... .5 .8 .4 .5 -.6 .5 1.0 -.1 .4 -.6 -.7 -1.3 .5 1,2 69 VI. Bank loans n.e.c. 70 Total net borrowing........................... 6.2 7.6 8.7 16.4 9.4 13.9 12.9 19.6 7.9 21.3 2.4 6.1 1.4 10.8 70 71 Nonfinancial business.................... 4.3 5.0 5.1 12.3 11.0 11.0 9.9 14.8 10.5 16.5 7.6 9.2 6,5 7.9 71 72 Nonbank finance........................... 1.0 1.7 .5 2.4 -1.2 2.6 1,3 3.3 -.4 3.4 -5.6 -2.3 -5.6 2.3 72 73 Households................................... .5 .4 1.4 1.3 -.2 1.4 1.3 1.9 -1.4 .8 .3 -.4 1.4 .6 73 74 Rest of the world........... .4 .5 1.7 .4 -.2 — 1.1 .4 -.4 -.7 .4 . 1 -.5 -1.0 * 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. 1967 relative to the Aug. Bulletin tables in financial data. Financial These tables reflect revisions in income and product accounts fcr 1964-67 revisions will appear with publication of the third-quarter data. published in the July Survey of Current Business but are unrevised before For other notes see p. 1817. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FLOW OF FUNDS 1817 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, Une 39. Line 51 includes accounts are in Nov, 1965 Bulletin. 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 p. 1536 of Nov. 1965 Bulletin.. Notes to Table 3 II. Financial dows-Summary. This table is described in Nov. 1962 I. Demand deposits and currency. Lines 5-8 are holder record; line 9 Bulletin, p. 1405. Total net funds raised (line 17) is borrowing through is difference between holder and bank record. credit markets (line 25 of Table 1) by households, nonfinancial business, III. U.S. Govt, securities. All holdings stated in par values; excludes govts,, and foreigners. Credit market funds raised by all sectors consists special issues to International 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 1 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 Bulletin, p. 852 ff. Foreign funds con­ banks not shown separately. sist of lines 9-12 of Table 4(1). 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) 1965 1966 1967 Category 1962 1963 1964 1965 1966 II nr IV I II in IV I II (A) Households! 1 Personal income............................. 442.6 465.5 497.5 537.8 584.0 530.1 544.6 556.1 567.8 577.3 589.3 601.5 612.9 619.1 1 2 Less: Personal taxes & nontaxes.. 57.4 60.9 59.4 65.6 75.2 66.1 65.2 66.7 70.4 74.0 76.9 79.6 80.2 79.2 2 3 Personal outlays................ 363.7 384.6 411.9 445.0 479.0 439.9 448.5 460.1 470.9 474.6 483.2 487.4 493.9 504.0 3 4 Equals: Personal saving.................. 21.6 19.9 26.2 27.2 29.8 24.0 30.9 29,3 26.6 28.7 29.2 34.6 38.8 35.9 4 5 Plus: Credits from Govt, insur.2. 3.5 4.0 4.4 4.1 4.0 4.4 4.1 3.6 3.8 4.5 3.9 3.9 4.8 5.9 5 6 Other adjustments 3........... .5 .5 .6 .9 1.3 . 6 .7 1.8 1.8 .6 .8 2.1 1.4 .6 6 7 Net durables in consumpt... 6.7 8.9 11.2 14.5 14.9 13.1 14.2 15.8 17.7 13.3 15.0 13.6 11.4 13.0 7 8 Purchases................. 49.5 53.9 59.2 66.0 70.3 64.2 66.1 68.6 71.6 68.2 70.9 70.6 69.4 72.1 8 9 Less: Cap. consumpt...... 42.9 45.0 48.0 51.4 55.4 51.0 51.9 52.8 53.8 54,9 55.9 57.0 58.0 59.1 9 10 Equals: Net saving......................... 32.3 33,3 42,4 46.7 50.0 42.2 49.9 50,5 49.8 47.1 48.9 54.3 56.4 55.4 10 11 Plus: Capital consumpt.4............ 49.8 52.4 55.9 59.9 64.1 59.4 60.3 61,3 62.5 63.6 64.7 65.8 67.0 68.1 11 12 Equals: Gross saving...................... 82,0 85.8 98.3 106.6 114.2 101.5 110.2 111.8 112.3 110.7 113.6 120.1 123.4 123.6 12 13 Gross investment (14+18)............... 83.5 87.2 98.8 107.1 112.4 105.7 111.1 112.0 111.1 108.9 110.6 118.7 121.7 122.2 13 14 Capital expend, (net of sales).... 71.5 76.3 82.1 89.2 93.1 87.2 89.3 92.1 95.4 91.7 93.7 91.3 88.1 91.1 14 15 Residential construction........... 18.7 19.0 19.2 19.1 18.4 18.9 19.1 19.2 19.4 19.2 18.5 16.2 14.3 14.7 15 16 Consumer durable goods......... 49.5 53.9 59.2 66.0 70.3 64.2 66.1 68.6 71.6 68.2 70.9 70.6 69.4 72.1 16 17 Plant and equip, (nonprofit) . .. 3.2 3.4 3.7 4.1 4.4 4.1 4.1 4.3 4.5 4.4 4.3 4.5 4.4 4.3 17 18 Net finan. investment (19—37)......... 12.1 10.9 16.7 18.0 19.3 18.6 21.8 19.9 15.7 17.2 16.9 27.5 33.6 31.1 18 19 Net acquis, of finan. assets5...... 32.6 37.2 43.9 47.7 42.7 47.8 51.0 52.1 41.7 43.8 39.6 45.9 52,0 52.5 19 20 Demand dep, and currency.... 2.7 4.3 6.7 7.2 2.1 .9 6.1 15.4 -3.4 2.6 .5 8.9 12.3 1.5 20 21 Savings accounts......................... 23.4 23.0 23.9 26.4 18.9 22.1 29.1 27.6 21.0 19.8 17.9 16.7 34.4 40.1 21 22 At commercial banks........... 10.3 7.9 8.2 13.3 11.6 9.8 15.8 13.9 11.3 15.0 12.6 7.4 18.0 19.8 22 23 At savings instutitions......... 13.0 15.1 15.8 13.1 7.3 12.3 13.2 13.6 9.7 4.8 5.3 9.4 16.4 20.3 23 24 Life insurance reserves............. 3.7 4.2 4.3 4.8 4.7 4.8 4.9 4.8 4.7 4.7 4.8 4.7 5.2 5.1 24 25 Pension fund reserves............... 8.8 9.9 11.2 10.9 12.1 11.6 11.2 10.6 11.9 11.0 12.6 12.7 11.6 14.0 25 26 Cr. market instr........................ -1.7 .4 3.4 2.5 10.8 11.6 3.7 -2.1 11.9 10.3 15.0 6.1 -9.1 -11.3 26 27 U.S. Govt, securities............. 3.5 1.7 2.6 7.8 9.9 1.3 -1.3 9.8 9.9 5.3 6.3 -5.0 -3.9 27 28 Savings bonds................... .4 1.2 .9 .6 .6 .4 .5 .8 .3 .7 .3 .9 .8 .9 28 29 Short-term mkt................. .4 2.8 -1.8 3.0 2.1 5.2 2.0 -.4 .4 6.4 -6.2 7.7 -2.5 -1.4 29 30 Other direct...................... -1.1 -.9 1.7 -1.2 1.1 1.0 -1.3 -.7 6.7 -7.3 6.8 -1.9 -1.6 -6.4 30 31 Nonguaranteed................. .3 .4 .9 .1 4.1 3.4 .1 -1.0 2.4 10.1 4.3 -.5 -1.7 3.0 31 32 State and local oblig............. .8 .7 2.5 2.2 3.5 1.5 2.4 4.4 1.9 .7 4.0 7.3 -2.5 -1.0 32 33 Corporate and fgn. bonds ... - .7 -1.0 - .8 -.1 -.2 2.7 1.6 -2.2 1.8 -3.6 4.0 -3.2 2.1 33 34 Corporate stock.................... -1.8 -2.5 .1 -1.6 -.2 -1.8 -.5 -3.1 .9 2.9 .8 -5.3 -3.5 -6.4 34 35 Mortgages............................. * -.3 -.1 -.6 * -.6 -1.1 .1 -2.5 .3 1.0 1.1 -.2 -1.1 35 36 Net invest, in noncorp. bus.. .. -4.9 -5.3 -6.6 -5.8 -7.1 -6.0 -5.7 -5.4 -7.4 -7.4 -7.1 -6.4 -6.8 -7.5 36 37 Net increase in liabilities......... 20,5 26.3 27.2 29.7 23.4 29.2 29.2 32.2 26.0 26.6 22.7 18.5 18.4 21.4 37 38 Credit mkt. instruments........... 20.4 24.1 21.2 28.5 23.3 28.3 28.7 29.1 25.0 25.1 24.4 18.6 16.6 18.1 38 39 1- to 4-family mtgs............... 12.9 14.8 16.0 15.9 13.5 15.3 16.2 16.5 15.1 14.5 13.5 11.1 8.3 10.9 39 40 Other mortgages................... .9 .9 .9 1.1 1.2 1.1 1.1 l.l 1.2 1.2 1.2 1.3 1.3 1.3 40 41 Consumer credit................... 5.5 7.3 8.0 9.4 6.9 9.6 9.3 8.9 9.2 7.0 6.9 4.6 4.3 4.2 41 42 Bank loans n.e.c................... .5 .4 1.4 1.3 -.2 1.4 1.3 1.9 -1.4 .8 .3 -.4 1.4 .6 42 43 Other loans 6........................ .7 .6 .8 .8 1.8 .9 .9 .7 1.0 1.6 2.5 2.0 1.3 1.2 43 44 Security credit.......................... -.1 2.0 -.2 .8 -.1 .7 .1 2.8 .6 1.2 -2.0 -.3 1.4 2.9 44 45 Discrepancy (12 — 13)...................... -1.5 -1.5 -.4 -.6 1.8 -4.2 -.9 -.2 1.3 1.8 3.0 1.4 1.7 1.3 45 For notes see p. 1823. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1818 FLOW OF FUNDS OCTOBER 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 —------ II III IV I II III IV I II (B) Nonfinancial business--Total 1 1 Income before taxes 2.................... 102.4 106.9 115.3 128.2 137.2 126.5 128.8 133.2 137.3 136.5 136.7 138 5 131 6 132 1 1 2 Gross saving................................... 55.0 57.3 65.0 70.5 75.8 69.2 70.9 72.8 73.6 74.9 75.7 79.3 75'2 75’9 2 3 Gross Investment........................... 53.3 57.2 61.9 70.0 73.0 66.6 70.5 71.0 70.0 71.9 75.1 75.6 73 9 74 2 3 4 (Capital expenditures........... 60.4 63.8 70.3 83.5 94.5 81.2 84.1 88.3 90.4 94.0 93.1 101.1 90 9 85 3 4 5 Fixed investment......................... 54.4 57.9 64.5 74.1 81.1 72.4 74.7 78.4 80.5 80.0 81.7 82.6 83 7 848 5 6 Business plant & equipment. .. 47.8 49.9 56.5 66.1 75.1 64.3 66.9 70.9 72.9 73.4 76.5 17.9 76.6 76.4 6 7 1-4 family residential const.3... .7 1.0 .2 .7 -.8 .6 .8 .5 .5 -.1 -1.5 -1.7 1.0 2.5 7 8 Other residential...................... 5.9 7.0 7.8 7.2 6.8 7.5 7.1 7.0 7.1 6.8 6.8 6.4 6.1 5 9 8 9 Change in inventories *............... 6.0 5.9 5.9 9.4 13.4 8.8 9.4 9.9 9.9 14.0 11.4 18.5 7.1 ' 5 9 10 Net financial investment................... -7.1 -6.5 -8.5 -13.4 -21.5 -14.6 -13.6-17.3 -20.4 -22.1 -18.0 -25.5 -17 0 -11 0 10 11 Net acquis, of finan. assets........... 17.5 19.8 14.2 25.3 20.4 20.6 21.8 27.0 25.9 29.0 15.2 11.6 11.8 6 8 1 [ 12 Net increase in liabilities s....... 24.6 26.4 22.7 38.7 41.9 35.2 35.5 44.3 46.3 51.1 33.3 37 1 28 7 17 8 12 13 Credit mkt. instruments........... 18.2 19.1 22.2 29.6 33.0 31.7 28.8 30.3 36.2 44.9 25.6 25 3 31 1 327 13 14 Securities.............................. 5.1 3.6 5.4 5.4 11.4 7.0 7.4 2.9 11.9 15.2 11.7 6 9 14 0 15 3 14 15 1-4 family mortgages............ .1 .4 - .3 .2 -1.0 .2 .2 - ,5 -2.2 — U6 1 5 8 [ 5 16 Other mortgages.................. 7.0 8.4 9.0 8.4 7.3 8.7 8.7 8.4 8.8 8.4 7 2 4 7 52 5 4 16 17 Bank loans n.e.c............ 4.3 5.0 5.1 12.3 11.0 11.0 9.9 14.8 10.5 16.5 7.6 9.2 6 5 79 17 18 Other loans s,................ 1.7 1.8 3.0 3.4 4.4 4.9 2.8 4.2 4.9 5.3 1.3 6 1 3 9 3 2 18 19 Trade debt............................... 5.5 7.0 4.3 8.6 9.6 6.6 7,7 10.2 9.2 13.9 6.7 8.5 J 82 19 20 Other liabilities........................ .9 .2 -3.9 .5 -.6 -3.2 -1.0 3.8 1.0 — 7.7 1.0 3.2 — 2 8 — 23 0 20 21 Discrepancy.................... 1.6 .1 3.1 .5 2.8 2.6 .4 1.8 3.6 3.0 .5 3.7 1.3 1.7 21 (C) Farm and noncorporate nonfinanci.il business 6 1 Net income 2.. 57.5 58.4 60.1 65.0 67.7 65.1 65.6 66.3 68.4 67.8 67.7 67.1 66 5 66 6 [ 2 Gross saving 7............................... 13.1 13.5 14.5 14.8 15.5 14.7 14.9 15.0 14.8 15.7 15.8 15.8 16 6 17^2 2 3 Gross investment............................. 13.1 13.5 14.5 14.8 15.5 14.7 14.9 15.0 14.8 15.7 15.8 15 8 16 6 17 2 3 4 (Capital expenditures...................... 15.7 17.1 16.6 19.9 19.1 19.4 19.3 21.2 19.8 19.7 16.8 20.1 16 2 18.6 4 5 Fixed investment.......................... 14.4 15,6 16.7 18.2 18.0 17.9 18.3 18.8 18.5 17.8 17.5 18.0 18 4 19 3 5 6 Change in inventories 4............... 1.3 1.5 • 1.7 1.1 1.6 1.0 2.4 1.3 1.9 — .7 2.1 — 2 2 — 1 3 6 7 Net financial investment................... —2.6 -3.6 -2.2 -5.1 - 3.6 -4.8 -4.5 -6.2 -5.0 — 4.0 — .9 — 4.3 .4 — .8 7 8 Net acquis, of finan. assets....... .5 .7 .8 .9 1.0 .8 .7 1.1 1.0 .8 .8 1.4 1.3 5 8 9 Net increase in liabilities s......, 3.1 4.3 3.0 6.0 4.5 5.5 3.2 7.3 5.9 4.8 1.7 5.7 ,9 1.3 9 10 Credit mkt. instruments........... 7.0 8.6 8.6 10.4 9.8 10.6 9.6 11.0 12 4 9 8 7.6 9 4 5 0 7 4 10 11 Mortgages.................... 4.2 5.2 5.4 5.4 4.2 5.5 5.5 5.4 5.7 5.0 3.6 2.5 4 0 3'.7 H 12 Bank loans n.e.c................... 1.8 2.1 1.5 3.0 3.3 2.2 2.4 3.5 4.2 2.0 2.9 4.1 .9 3.1 12 13 Other loans s, 8..................... 1.0 1.3 1.7 2.1 2.3 2.9 1.7 2.1 2.6 2.8 1.1 2.7 .1 .6 13 14 Trade debt, net.............. 1.0 1.1 1.0 1.3 1.8 .9 1.3 1.6 .9 2.4 1.3 2.8 2.7 1 4 14 15 Proprietors’ net investment 9... -4.9 -5.3 -6.6 -5.8 -7.1 -6.0 -5.7 -5.4 -7.4 -7.4 -7.1 -6.4 -6.8 -7.5 15 (D) Corporate nonfinancial business 10 I Profits+IVA................................... 44.9 48.6 55.2 63.1 69.5 61.5 63.2 66.9 68 9 68 8 69 0 71 3 65.1 65 4 1 2 Profits tax accruals.......................... 20.8 22.8 24.2 27.6 30.2 27.2 27.3 29.2 30.3 30.2 30.2 30.1 28.0 28.1 2 3 Net dividend payments n............... 11.4 12.7 13.2 15.1 16.7 14.5 15.6 16.5 16.8 16.8 16.8 16.2 17.4 18.3 3 4 Net savings +IVA (1-2-3)................ 12.6 13.1 17.8 20.5 22.6 19.8 20.4 21.2 21.8 21.8 21.9 25.1 19,7 19.1 4 5 Capital consumption....................... 29.2 30.8 32.8 35.3 37.7 34.8 35.7 36.6 37.0 37.5 37.9 38,4 38.9 39.6 5 6 Current surp.=» gross saving (4+5).. 41.8 43.9 50.5 55.7 60.3 54,6 56,1 57.8 58.8 59.2 59.8 63.5 58/6 58.7 6 7 Gross investment............................. 40.2 43.8 47.4 55.3 57.5 52.0 55.6 56.0 55.2 56.2 59.3 59,8 57,3 57,0 7 8 (Capital expenditures................ 44.7 46.7 53.7 63.6 75.5 61.8 64.8 67.1 70.6 74.3 76.4 81.0 74.7 67.3 8 9 Fixed investment.......................... 40.0 42.3 47.8 55.9 63.2 54.5 56.4 59.6 62.0 62.1 64.3 64.6 65'3 65 5 9 10 Plant and equipment................ 37.0 38.6 44.1 52.2 60.4 50.7 52.7 56.1 58.4 59.1 61.9 62.5 62.1 61.6 10 11 Residential construction........... 3.0 3.7 3.7 3.7 2.7 3.8 3.7 3.5 3.6 3.1 2.3 2.1 3.3 3.9 11 12 Change in inventories 4............... 4.7 4.3 5.9 7.7 12.3 7.3 8.4 7.5 8.6 12,2 12.1 16.4 9.3 1.8 12 13 Net financial investment................... —4.5 -2.9 -6.3 —8.3 -17.9 -9.8 —9.1 -11.1 -15.4 -18.1 -17.1 -21.2 -17.3 -10.3 13 14 Net acquis, of finan. assets.......... 16.9 19.1 13.4 24.4 19.5 19.8 21.1 25.9 25.0 28.2 14.4 10.2 10.5 6.3 14 15 Liquid assets............................ 4.1 4.3 .6 .7 1.1 -1.7 .3 -.6 10.5 2.2 -2.6 -5.5 3^4 -8.0 15 16 Demand dep. and curr...... -.9 -.8 -2.5 -1.9 .7 -3.1 -4.5 -.6 4.0 1.6 -.7 -2.0 -4.3 .5 16 17 Time deposits........................ 3.7 3.9 3.2 3,9 -.7 5.7 2.5 .9 4.1 1.7 -3.9 -4.6 10.0 — .9 17 18 U.S, Govt, securities........... .5 .5 -1.4 -2.1 -1.2 -5.0 .1 -1.3 -.2 -2.1 — 1.0 -1.3 -5.3 -7.6 18 19 Open-market paper.............. .9 .7 1.4 .8 2.3 .8 2.3 .3 2.7 1.0 3.0 2.4 3.0 * 19 20 State and local oblig,......... - .4 .9 .2 .7 .8 .7 .8 .8 .8 .8 .7 .8 ,7 .7 20 21 Consumer credit..................... .9 .7 1.0 1.2 1.1 .6 1.0 1.3 2.5 1.0 .8 -.1 1.4 1.1 21 22 Trade credit.............................. 8.2 8.5 9.1 13.7 10.9 11.3 10.3 16.8 10.7 16.8 9.0 7.0 3.3 8.3 22 23 Other financial assets 12.,,..,, 4.1 4.8 2.5 8.2 5.6 8.8 8.6 7.6 .4 7.4 6.5 8.0 1.6 4.2 23 24 Net increase in liabilities............. 21.5 22.0 19.7 32.7 37.4 29.6 30.3 37.0 40.4 46.2 31.5 31.4 27.8 16.6 24 25 Credit mkt. instruments........... 11.2 10.5 13.6 19.2 23.2 21.1 19.2 19.3 23.8 35.1 18.1 16.0 26.1 25.3 25 26 Corporate bonds.................. 4.6 3.9 4.0 5.4 10.2 5.3 7.9 3.9 12.4 9.3 10.8 8,4 13.1 13.5 26 27 Corporate stock............ .6 -.3 1.4 1.2 1.6 -.5 -1.0 -.5 5.9 .9 -1.5 .9 1.9 27 28 Mortgages............................. 2.9 3.5 3.3 3.2 2.1 3,4 3.2 3.0 3.3 2.9 1.4 .6 2.7 2.6 28 29 Bank loans n.e.c................... 2.5 2.9 3.6 9.3 7.7 8.8 7.4 11.3 6.3 14.5 4.8 5.1 5.7 4.8 29 30 Other loans13....................... .7 .5 1.3 1.3 2.1 2.0 1.2 2.1 2.3 2.5 .2 3.4 3.8 2.6 30 31 Profits tax liability 14............... 1.1 1.5 .9 2.0 -.4 -1.9 1.9 4.7 2.6 -7.5 2.8 .7 3.2 -24.5 31 32 Trade debt............................... 4.4 6.0 3.4 7.3 7.7 5.7 6.4 8.5 8.2 11.5 5.4 5.8 -2.3 6.8 32 33 Other liabilities............... 4.7 4.0 1.8 4.2 6.8 4.7 2.8 4.5 5.8 7.2 5.3 9.0 .8 9.0 33 34 Discrepancy..................................... 1.6 .1 3.1 .5 2.8 2.6 .4 1.8 3.6 3.0 .5 3.7 1.3 1.7 34 35 Memo: Net trade credit.................. 3.7 2,5 5.7 6.4 3.2 5.6 4.0 8.3 2.5 5.3 3.7 1.3 5.6 1.4 35 36 Profits tax payments14.................... 20.0 20.8 23.5 25.8 30.8 28.1 25.9 25.5 26.9 40.2 28.4 27.7 25.6 51.4 36 For notes see p. 1823. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FLOW OF FUNDS 1819 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 1,1[ 1" If III IV I 11 IV I (E) U.S. Government 1 1 Tax receipts (net of refunds).......... 85.9 91.4 91.2 99.6 109 9 99.9 98 1 101.8 105 1 109.0 111.6 113.9 J 12.0 111.0 ! 2 Individual income...................... 48.6 51.5 48.6 53.8 61.7 54 5 53 3 54 6 57.7 60.9 63. 1 65,2 65.5 64.1 2 3 Corp, profits tax accruals............ 22.7 24.6 26.4 29 3 32 3 28 9 29 0 30 9 32 2 32 2 32 4 32 3 30 3 30 3 3 4 Other........................................... 14.6 15.3 16.1 163 153 163 153 16 3 152 15.9 16.1 16' 3 16 2 16 5 4 Social insurance programs 2 5 Premiums received...................... 18.5 21 0 21 6 22 8 30 8 22 6 22 9 23 4 29 4 30 0 31 4 32 2 34 4 34 6 5 6 Benefits paid............................... 17.4 18.2 18 7 20.3 223 20 .‘0 20 3 21.1 213 22 4 22 8 23.1 23 4 23.7 6 Life insur. & retirement programs 3 7 Premiums received...................... 2.1 2. i 2.2 2.3 2 5 2 3 2.4 2 4 2.5 2.5 2 5 2.6 2.6 2.6 7 8 Benefits paid................................ 2.9 3.2 3 2 3.3 3 9 3 2 3 3 3 5 3 7 3.9 4.0 4.0 4.1 4 1 8 9 Net grants and donations paid *.. . , 19.4 20.5 22.8 24.2 29.8 22.7 26.5 24.7 28.1 27.7 30.3 33.3 36.1 35.1 9 10 Net interest paid............................ 7.2 7.7 8 3 8 7 9 5 8 6 8 7 8 9 9 1 9 4 9.6 10 0 10 4 10 4 10 11 Net purchases of goods & services.. 63.4 64.2 65.2 66.8 77.0 65.4 67.6 693 72, 1 74,9 79.5 81 .5 87.1 89’5 1 I 12 Net surplus...................................... — 3 8 .7 — 3 0 1 4 5 0 3 3 — 3 2 2 3.2 — 7 - 3 3 - 11 8 -14 6 1 2 13 Insurance and retirement credits 5.. i. i 1.3 1.4 1.4 1.4 1.8 1.6 L0 1, 1 1.8 1^2 1.3 .9 L8 13 14 Gross saving................................... — 4 8 — .6 — 4 3 — 9 3 2 -4 8 -I 2 1 2 1 5 -1 9 — 4 5 — 12.6 — 16 3 14 15 Net finan. investment (16 — 23)...... — 4.7 — 1.3 — 2.9 — 1.1 — .6 .9 -6.2 8 — 1 9 4.6 — 3.6 — 1.5 -10.5 -15.7 15 16 Net acquis, of finan. assets.......... 4.7 4.7 5 2 4 5 8.3 4. 8 -7.9 9 6 13.2 10.5 5. 7 J 9 J.6 —35.2 16 17 Demand deposits & currency... 1.0 -.4 .6 — 1.4 - . 1 -2.5—11.4 2.3 -3.5 10.7 -4.2 -3.4 -1.7 -12.4 17 18 Credit market instruments....... 3.3 2.7 3.8 4.7 7.5 6.4 3. 1 3.9 11,3 10.0 6.6 1.9 4.3 -.8 18 19 Mortgages;......................... 3 -1.0 , 3 1 0 3.4 I 0 7 1 5 4.6 4. 1 3 0 1.9 2 5 1 .9 19 20 Other loans........................... 3.0 3.7 3.5 3 7 4 0 5.4 2 4 2 4 6.8 5.9 3.5 ♦ 1 8 — 2.7 20 21 Excess of tax accruals over receipts................................. . 8 1.8 1.1 1 2 5 1 4 1 2 3 5 3 0 10 3 1 9 3 J 1 9 ^4 9 21 22 Other financial assets 6............ - .5 .6 - .3 * 1 5 2.3 - 3 -3 23 ‘2 1'4 2'. 1 — '9 2/3 23 Net increase in liabilities............. 9.3 6.0 8.1 5.6 8.9 3.9 -1.6 10.3 15.0 5.9 9.3 5.4 14.0 —19.5 23 24 Life insurance and retirement reserves............................... 1 . 1 1.3 1 .4 1.4 1.4 1.8 1.6 1.0 1.1 1.8 1.2 1.3 .9 I 8 24 25 U.S. Govt, securities 7............. 7.9 5 0 7.1 3 5 6 7 1.4 — 4 5 8 2 14 9 2.8 7.0 2.2 10.1 -24.0 25 26 Svgs. bonds 8...................... ,4 1.2 9 6 6 5 ' 8 ' 3 7 3 9 8 9 26 27 Short-term marketable 9. . . . .7 1.4 4.0 3.5 2.2 3^6 -3.5 8.3 1.3 -12> 6.3 14.1 12.7 -41.0 27 28 Other direct........................ 4 8 1.1 .9 — 2. 9 -1.4 -7.2 -5.3 -I 4 7 9 -2 4 1,4 -12.6 — 4.9 11.1 28 29 Nonguaranteed agency issues 1.6 1.5 .4 1.9 3.9 4.8 1.9 .5 3.8 10,3 1.2 .2 -4.2 -2.2 29 30 Loan participations.............. .5 -.2 .8 .4 1.5 -.3 1.9 1.6 6.9 -2.2 -.2 5.8 7.1 30 31 Other liabilities........................ .3 -.3 - .4 .6 .8 .7 1.3 1.1 -1.0 1.3 1.1 1.9 3.1 2.8 3( 32 Discrepancy (14—15).................. — 2 .7 -1 4 1.2 — .3 2.3 1.4 - 5 3.0 -3.2 1.8 -3.0 -2.1 — .6 32 33 Memo: Corp, tax receipts, net....... 21.9 22.8 25.3 28.1 32.8 30.3 27.9 27.4 29.2 42.5 30.4 29.0 28.5 55.3 33 (F) State and local governments 10 1 Tax receipts.................................... 47.1 50.5 54.9 59.5 64.9 58.9 60 3 61.0 62.6 64.1 65 8 67 3 68 5 69.9 1 2 Social ins. and grants rec............... 11.5 12.9 14.5 15.6 19.7 15.2 15.9 16.8 18 5 19.4 20.2 20,7 20.8 20.5 3 Pur ch. of goods and services....... 53.7 58.2 63.5 69.6 77.2 68.6 70,4 72.5 74.3 76.2 78. 1 80.2 83,3 85.4 3 4 Net interest & transfers paid 11. ... 3.9 4.0 4.3 4.3 4.5 4.3 4.3 4.3 4.4 4.4 4.6 4.7 4.9 5.2 4 5 Net surplus...................................... 9 1.2 1.7 1 .2 2.9 1.2 1 5 1. 1 2 4 2 9 3.3 3.0 1.0 —.2 5 6 Less retirement credit to households 2.4 2.7 3.1 2.6 2.7 2.6 2.5 2.6 2.6 2.6 2.7 2.7 4.0 4.1 6 7 Equals: Gross saving................. - 1 4 - 1 5 1.4 1 .4 . 3 -1 3 -I 0 -1.5 - .2 3 .6 3 -3.0 -4.3 7 8 Net financial investment (9 — 17).... -2.5 -2.1 -2.5 -1.5 .7 -1.6 -1.4 -1.7 t.O .5 .3 .9 -3.1 -11.9 8 9 Net acquis, of ft/tan. assets........... 5.6 7.7 6.9 9.0 10.0 10.3 8.3 9.4 9.4 ll.l 9.4 10.3 10.8 4.7 9 10 Liquid assets...................... 2.5 4 1 2.6 4.5 3.3 6.7 4 7 3.8 4 4 2 8 3.8 2.1 9.1 -1.9 It) 11 Demand deposits and cur..., .9 2.4 1.4 1.0 13 4.6 3.2 .7 1.4 3,1 .6 .9 1.8 2.1 11 12 Time deposits....................... 1 0 1.6 1.7 2 4 I 4 1.1 3.1 3.3 - .3 2 3 1.9 1.9 5.7 3.4 1 2 13 Short-term U.S. Govt. sec.. . .6 .1 -.5 1.1 3 .9 -1.6 -.2 3.3 -2.5 1.3 -.6 1.5 -7.3 13 14 Other U.S. Govt, securities.... .6 .6 1.0 1.3 1.4 * 2.2 .1 .9 3.2 -4.7 -1.9 14 15 State and local obligations....... -.7 -.7 -.6 -.6 -.4 -.8 -.6 -.5 -.4 -.4 -.4 -.4 -.5 -.2 15 16 Other 12.................................. 3 1 3 5 3 7 3 7 6 0 2 7 4.3 4.2 5.0 7.4 6.1 5.6 6.8 8.4 16 17 Net increase in liabilities............. 8.1 9 8 9.4 10.5 9.4 11.9 9.8 ll.l 8.5 10.5 9.1 9.4 13.9 16.6 17 18 Credit market borrowing...... 5.6 7 0 6.2 7.8 6.6 9.2 7.2 8.4 5.8 7.8 6.3 6.6 9.8 12.4 18 19 State and local obligations... 5.0 6.7 5.9 7.4 5.9 8.6 6.8 8.1 5.4 7.2 4.8 6.2 9.5 12.1 19 20 Short-term............ 4 5 7 1 3 4 1.4 2.4 1.0 .6 1.1 - .3 .3 1.3 2.4 20 21 Other........................... 4 6 6 2 5 1 6 1 5 5 7.2 4 4 7 1 4 8 6.1 5.0 5 9 8 3 9.6 21 22 U.S. Govt, loans.................. .6 .3 ‘4 .'4 3 .6 .4 .3 .4 .6 1.6 .4 .2 .4 22 23 Employee retirement reserves. . 2.4 2.7 3.1 2.6 2.7 2.6 2.5 2.6 2.6 2.6 2.7 2.7 4.0 4.1 23 24 Trade debt............................... , 1 I I 1 . 1 , 1 , 1 .1 . 1 . 1 24 25 Discrepancy..................................... 1.0 .6 1 I ,2 — .4 .2 .4 .2 -1.2 -.2 .3 -.6 7.6 25 26 Memo: Total U.S. Govt, sec........... 1.2 .7 .5 2.5 1.4 2.3 -1.6 2.0 3.4 -1.6 1.3 2.5 -3.2 -9.2 26 For notes see p. 1823. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1820 FLOW OF FUNDS OCTOBER 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (in billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 II III IV 1 II in IV I II (G)Monetary authorities t 1 Current surplus............................... . 1 . 1 -.5 ♦ ♦ * * .1 ♦ * ♦ ♦ * * 1 2 Net acquis, of financial assets.......... 1.7 2.2 3.4 2.3 4.2 2.5 4.4 -.6 5.1 2.5 6.8 2.6 3.7 2.7 2 3 Gold and foreign exchange^....... -.8 -.4 -1.3 -.3 -2.2 1.3 -1.4 -2.1 .2 .4 . 1 -3.1 1.7 3 4 Treasury currency................... -.2 .2 .7 .3 .4 .7 1.0 .5 .8 .7 .5 4 5 Credit mkt. instruments............... 2.0 2.9 3.4 3.8 3.5 3.8 4.3 1.2 2.1 2.1 6.0 3.7 4.5 3.0 5 6 U.S. Govt, securities............... 1.9 2.8 3.5 3.7 3.5 4.2 4.3 .5 2.4 1,8 6.8 3.1 4.8 2.9 6 7 Short-term marketable........ 2.0 4.9 2. 1 3.7 5.4 6.2 -.3 -3.6 5.2 -3.5 6.9 13.0 2.5 -7.9 7 8 Other.................................... 1 -2.2 1.3 . 1 -1.9 -2.0 4.6 4.1 -2.8 5.3 -. 1 -9.9 2.3 10.8 8 9 F.R. float..................................... .6 - .3 * -.4 .3 -.2 1.0 -1.5 3.6 -.5 -1.7 -.4 1.9 -2.2 9 10 F.R. loans to domestic banks.... -. 1 * .1 -. 1 .1 1.0 -2.5 .8 .8 -.3 1.5 -1.7 -.4 -.3 10 11 Net increase in liabilities.,............. 1.6 2.1 3.8 2.2 4.2 2.5 4.4 -.6 5.1 2.5 6.8 2.5 3.7 2.7 11 12 Member bank reserves................ -.4 1.0 .4 1.3 .9 * .5 -. 1 -.5 5.7 -.3 -.9 -1.5 12 13 Vault cash of coml. banks 3......... .7 .6 -.4 .3 .5 .5 - .6 -.8 .9 -.3 .2 1.5 -.4 -1.2 13 Demand deposits and currency.., 14 Due to U.S. Govt................... . 1 .3 .2 ♦ .2 -.3 1.2 -1.2 -.4 2.0 -.3 -.7 1.8 3.0 14 15 Due to rest of the world 4..... -.1 -.1 .2 .1 . 1 -.2 1.3 ♦ -.5 ♦ -.1 . 1 15 16 Currency outside banks........... .8 1.7 2.4 2.1 2.0 1.8 4.0 2.0 3.5 1.3 1.9 1.4 3.3 2.0 16 17 Other............................................ * * .6 -.5 -.1 -.4 -.3 -1.0 -.2 .1 — .2 - .1 .1 .4 17 (H) Commercial banks 5 1 Current surplus............................... 1.5 1.7 1.9 2.0 2.3 2.0 1.9 2.0 2.2 2.2 2.4 2.3 2.2 2.0 1 2 Net acquisition of financial assets . .. 20.7 20.0 23.5 30.2 20.9 24.3 16.7 45.2 20.1 38.1 14.4 11.0 37.2 20.6 2 3 Member bank reserves 6............... 1 4 1 0 4 I 3 9 * 5 — 1 — 5 5.7 .3 — .9 — 1.5 2 4 Vault cash................................ 7 ft 4 s 6 — 8 9 —. 3 .2 1 5 .4 —1.2 4 5 Total loans and investments........ 19'.5 19.4 22.3 29.0 18.3 22.7 18^4 43'.9 18.3 37.1 8.4 9.5 39.5 21.7 5 6 Credit market instruments....... 18.4 18.8 21.8 28.9 18.4 21.5 27.1 38.4 19.9 35.7 7.4 10.8 37.4 28.9 6 7 U.S. Govt, securities7............ 1 4 — 2 6 4 2.3 — 2.8 — 10 2 1 7 5 1 —1.9 .5 -5.7 -4.2 18.0 - 1.3 7 8 Short-term marketable.... -5.2 -3.5 3.9 -1.7 -4.6 -5^7 2.4 7.2 -10.7 -4.9 . 1 -2.9 9.4 -11.3 8 9 Other direct.............. 5 2 5 4 I — 1 4 1.0 5 3 6 1 — 2 3 8.3 — 9 — 2.0 - 1.6 6 0 5.1 9 10 Agency issues.................. ,9 5 I 7 1' 1 1’9 1.7 — 1.0 2.8 — 1.7 .3 -.6 1.0 10 11 Loan participations.......... .5 — .2 .6 —. 4 .7 -J . 1 -1.3 1.5 3.5 -2. i * 3.1 3.9 11 12 Other securities & mortgages. 8.3 10.1 8.1 10.5 6.8 12.1 10.5 9.9 8.7 10.3 6.2 1.9 11.5 15.7 12 13 State and local oblig......... 4.4 5.2 3.5 5.0 1.8 6.4 4.2 4.5 3.4 5.0 1.2 -2.5 9.5 12.1 13 14 Corporate bonds........ * i i — 2 — * 14 15 1- to 4-family mortgages... 2.0 2.7 2.3 3'. 1 2.6 2'8 3’7 3.4 2.6 2.9 2.7 2.3 1.0 2.6 15 16 Other mortgages............... 1.9 2.2 2.2 2.5 2.4 2.8 2.7 2.4 2.8 2.4 2.3 2.2 1.0 1.1 16 17 Other credit exc. security.. .. 8.7 11.3 13.4 20.7 14.5 19.6 18.2 23.1 13.2 24.9 6.9 13.0 7.9 14.5 17 18 Consumer credit............... 2.3 3.5 3.8 4 7 3.1 4.9 5.1 4.6 3.5 3.1 3.4 2.4 1.4 2.0 18 19 Bank loans n.e.c................ 6.2 7.6 8.7 16 4 9.4 13.9 12.9 19.4 8.0 21.3 2.4 6.1 1.3 10.8 19 20 Other loans 8..................... .2 .8 -. 5 1.9 .7 .2 - .9 1.6 .5 1.1 4.5 5.2 1.7 20 21 Security credit.......................... 1.1 .6 . 5 , 1 — .1 1.2 —8.7 5.5 -1.6 1.3 1.1 -1.2 2.1 -7.2 21 22 Misc. assets....................... 5 4 .6 5 .6 2 — 1.1 1.5 ,9 1.8 .1 — .3 — .9 1.7 22 23 Net increase in liabilities.................. 19.8 19.3 22.0 28.8 19.5 22.5 15.8 43.2 19.2 36.8 12.6 9.3 35.8 19.0 23 24 Demand deposits, net.................. 3.7 3.8 4.8 5.6 -5.4 20.5 -8.0 10.8 -6.5 4.1 1.3 -4.8 24 25 U.S. Govt. 9............................. 1.2 - .6 ♦ -1.0 — .6 -.6 -11.6 3.3 -4.7 6.9 -1.5 -3.3 -4.2 -15.8 25 26 Foreign 10........................... .4 . 1 — .4 -.6 .6 1.0 -1.3 1.2 -1.4 -.3 -1.9 2.4 26 27 Other, nett 1....................... 2.3 4.3 4.4 6.4 1.2 1.3 5.6 16.3 -2.1 2.7 -3.6 7.7 7.4 8.6 27 28 Time deposits............................... 15.6 14.3 14.5 20.0 13.2 17.6 21.4 18.4 14.9 20.9 11.2 5.8 35.1 24.7 28 29 F R float................ . .6 -.3 ♦ -.4 .3 -.2 1.0 -1.5 3.6 -.5 -1.7 -.4 1.9 -2.2 29 30 Borrowing at F.R. Banks........ -.1 .1 -.1 .1 1.0 -2.5 .8 .8 -.3 1.5 -1.7 -.4 -.3 20 3 31 2 Ot S h e e c r u l r i i a t b y i i l s it s i u es e . s .. . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . .......... . 1 1 . . 3 4 2. . 5 6 3 . . 8 6 5. . 8 1 4 2 . . 1 0 1 . . 3 1 4. . 9 4 7. . 8 1 5. . 9 3 8.1 * 1.5 * -2.1 .8 1 . . 1 6 3 3 1 2 33 Discrepancy.................................... .4 .5 ♦ .3 .6 -.2 .6 . 1 .7 .4 .6 .6 .5 . 1 33 34 Memo: Total loans exc. mortgages.. 9.8 11.9 13.9 20.8 14.4 20.8 9.5 28.6 11.6 26.2 8.0 11.8 10.0 7.3 34 For notes see p. 1823. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FLOW OF FUNDS 1821 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (in billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 11 III IV I II Iff IV 1 If (I) Nonbank financial institutions1 1 Current surplus................................ 2.2 1.7 1.2 1.3 1.1) 1.6 1.6 .5 .4 1.6 1.5 .3 1.1 2.0 1 2 Physical investment (Life ins.)....... .3 .5 .5 .5 .4 .5 .5 .5 .4 .4 .4 .4 .6 .6 2 3 Net acquis, of financial assets........... 32.6 37.0 37.0 37.7 30.2 41.4 29.9 41.3 39.0 28.2 22.4 31.1 36.4 30.6 3 4 Demand deposits and currency... 1.1 ,3 .7 .3 .5 .9 1.5 -1.4 .5 .7 1.6 .9 1.7 4 5 Time deposits (Mut. svgs. bks.)... * * .2 -.2 -.2 5 6 Svgs. and loan shares (Cr. unions) . 1 . 1 -.2 -.2 - .4 -.2 .2 —. 3 -.4 -.3 . 1 .3 1.3 6 7 Cr. mkt. instr.............................. 30.7 33.7 35.8 35.7 28.9 39.6 27.9 37. 1 38.9 26.6 22.3 27.9 29.2 24.5 7 8 U.S. Govt, securities................. 1.6 -.5 2.0 -.8 .6 -.8 -5.9 1.5 4.0 -4.3 4.4 -1.9 -1.4 -7.0 8 9 State and local obligations....... .9 .6 .2 .3 .7 -l.l -.3 1.1 -.8 1.1 2.2 .4 9 10 Corporate bonds...................... 3.8 4.4 4.4 5.5 5.2 5.3 5.1 5.6 8.3 4.6 2.9 5.0 7.2 4.3 10 11 Corporate stock,...................... 4.2 3.4 3.7 5.4 5.3 6.0 4.3 7.0 3.8 6.3 3.5 7.5 7.9 9.1 11 12 1- to 4Tamily mortgages......... H.O 14. i 13.0 12.7 6.1 12.8 12.8 11.5 11.8 6.5 3.3 2.9 7.6 10.0 12 13 Other mortgages...................... 5.7 6.9 7.3 6.4 5.1 6.3 6.5 6.6 6.1 5.9 5.2 3.5 4.7 4.9 13 14 Consumer credit...................... 1.9 2.8 2.8 3.1 2.3 3.7 2.9 2.5 2.7 2.6 2.5 1.6 .9 1.3 14 15 Other loans.............................. 1.6 2.1 2.4 3.4 4.0 5.5 2.3 3.6 2.7 3.9 1.3 8.2 .2 1.5 15 16 Security credit.................. -.3 1.9 -.5 .2 -.1 .4 -.3 1.6 .5 .4 -2.0 .7 1.5 1.7 16 17 Trade credit................................. .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .3 . 3 7 18 Miscellaneous assets.................... .9 l.l 1.2 1.2 l.l 1.0 1.7 .9 1.1 1.1 1.4 .7 4.2 1.2 18 19 Net increase in liabilities.................. 30.5 35.5 36.3 36.2 29.9 39.6 29.0 40.5 38.3 29.4 19.2 32.6 37.6 30.4 19 20 Time and savings acct................. 13.1 15.2 15.9 12.9 7.1 11.9 13.0 13.8 9.4 4.4 5.0 9.4 16.7 21.6 20 21 Ins. and pension reserves............. 9.0 10. 1 ll.l 11.6 12.8 12.0 12.0 11.7 12.9 11.2 13.5 13.4 11.9 13.3 21 22 Cr. mkt. instr.2............................ 5.7 7.1 6.2 8.9 6.8 10.5 9.3 8.0 12.3 9.2 1.6 4.0 -.2 -1.6 22 23 Finance company bonds......... .3 1.4 2.1 1.9 .8 1.8 1.5 2.7 1 .6 .3 1.9 -.8 1.5 -.5 23 24 Investment company shares.... 1.9 1.2 1.9 3.0 3.8 2.2 3.5 4.0 5.1 3.2 3.7 3.4 3.2 1.5 24 25 Mtg. loans in process............... .4 .5 -.3 -.1 -.9 .2 -.2 -.2 .4 -1.1 -1.8 -1.2 .6 1.3 25 26 Bank loans n.e.c....................... 1.0 1.7 .5 2.4 -1.2 2.6 1.3 3.3 -.4 3.4 -5.6 -2.3 -5.6 2.3 26 27 Other loans............................... 2.0 2.3 2.0 1.7 4.3 3.7 3.3 -1.9 5.6 3.4 3.3 4.9 . 1 -6.1 27 28 Finance co. paper................ 1.2 1.0 1.5 1.0 3.4 2.2 2.8 -l.l 2.8 1.6 2.2 6.9 2.9 .3 28 29 FHLB loans......................... .8 1.3 .5 .7 .9 1.5 .5 -.8 2.8 1.8 1.1 -2.0 -2.8 -6.4 29 30 Security credit............................. .9 .5 -.2 2.3 -8.7 4.2 .3 2.2 -3.9 1.8 5.2 -5.4 30 31 Taxes payable............................... . 1 * .1 . 1 .3 .1 -.3 -.1 .2 .8 -.5 -1.1 31 32 Miscellaneous liabilities............... 1.7 2.5 3.1 3.0 3.0 2.8 3.2 2.7 3.7 2.6 2.8 3.1 4.5 3.6 32 33 Discrepancy................................... -.2 -.3 .1 -.7 .3 -.6 .3 -.7 -.7 2.4 -2.1 1.4 1.7 1.2 33 (LI) Savings and loan associations 2 1 Ne D t e a m cq a u n is d , d o e f p f o in s a it n s c i a a n l d a s c s u e r t r s e . n .. c .. y . .. 3 .. . 11 . . 6 5 14. . 0 1 11.8 10.1 ♦ - 4 . . 5 4 10 . . 6 1 10. .5 2 - 9 .1 .3 - 9 . . 6 3 - 4 . . 4 6 -1 1 . . 0 4 - 2 .1 .4 7. . 4 1 10. . 1 1 2 1 3 Cr. mkt. instr. 4........................... 10.3 13.3 11.1 9.4 4.3 9.9 8.7 9.2 9.5 4.4 1.4 1.9 4.2 9.6 3 4 U.S. Govt, securities................ .4 1.0 .6 .5 .5 .5 -.2 .6 1.2 -.8 .7 1.0 .6 2.3 4 5 1- to 4-family mortgages.......... 7.4 9.3 8.0 7.6 3.3 7.6 7.4 7.3 7.5 4.3 .5 1.0 3.5 5,9 5 6 Other mortgages...................... 2.6 2.9 2.4 1.3 .4 1.6 1.4 l.l .9 .8 . 1 * .2 l.l 6 7 Mise, financial transactions......... .6 .5 .7 .6 .6 .6 1.1 .3 .4 .6 1.0 .6 3.2 .5 7 8 Net increase in liabilities.................. 10.7 13.3 11.1 9.3 3.9 9.7 9.5 8.5 8.7 3.9 .8 2.1 7.6 9.7 8 9 Savings shares............................. 9.4 11.1 10.6 8.4 3.6 7.6 8.7 9. 1 5.8 2.5 1.4 4.7 10.2 13.9 9 10 Mtg. loans in process.................. .4 .5 -.3 1 -.9 .2 -.2 -.2 .4 -l.l -1.8 -1.2 .6 1.3 10 11 Borrowing from FHLB............... .8 1.3 .5 .7 .9 1.5 .5 -.8 2.8 1.8 1.1 -2.0 -2.8 -6.4 11 12 Memo: FHLB loans less deposits.,. .8 1.4 .5 .8 .9 1.7 .4 -.5 3.1 1.8 1.4 -2.5 -5.2 -7.2 12 (1.2) Mutual savings banks 1 Net acquis, of financial assets 5........ 3.3 3.6 4.5 4.0 2.8 4.0 4.3 3.6 2.9 1.4 3.7 3.0 5.7 6.6 1 2 U.S. Govt, securities.................... -.2 -.3 -.5 .1 -.6 -.7 -.9 -.1 -.4 -1.6 -.3 2 3 Corporate bonds.......................... -. 1 -.3 -.2 -.1 .2 -.1 -.1 -.3 .2 -.1 .3 .5 2.2 2.8 3 4 1- to 4-family mortgages............. 2.1 2.6 2.7 2.7 1.7 2.5 2.8 2.8 1.8 l.l 1.9 1.9 2,0 2.0 4 5 Other mortgages.......................... 1.0 1.3 1.7 1.4 1.1 1.3 1.5 1.5 1.2 .9 1.1 1.1 1.1 1.1 5 6 Savings deposits................... 3.1 3.3 4.2 3.6 2.6 3.4 3.5 3.6 2.7 1.0 3.0 3.5 5.5 6.1 6 (1.3) Life insurance companies 1 Current surplus................................ 1.1 1.1 1.1 i.l 1.3 1.1 l.l 1.2 1.2 1.3 1.4 1.5 1.5 1.5 I 2 Net acquis, of financial assets 5..... 6.8 7.0 7.8 8.6 8.4 8.4 8.3 8.9 9.4 7.7 9.1 7.6 11.2 8.5 2 3 Cr. mkt. instr............................... 6.5 6.7 7.4 8.1 8.0 8.0 8.0 8.1 9.8 7.4 8.5 6.5 10.6 7.9 3 4 U.S. Govt, securities................ . 1 -.4 -.3 -.4 -.3 -.7 -.9 -.4 1 -.6 -.7 -.1 -.4 4 5 State and local obligations....... .1 -.2 —. 1 -.3 -.4 -.2 -.4 -.3 -.5 -.6 -.2 -.2 -.2 -. 1 5 6 Corporate bonds...................... 2.5 2.8 2.3 2.7 2.3 2.1 3.2 3.2 4.8 1.7 2.6 .3 4.0 2.0 6 7 Corporate stock........................ .4 .2 .5 .8 .2 .6 .8 1.2 .1 .1 .2 .3 .7 .9 7 8 1- to 4-family mortgages.......... .6 .9 1.4 1.2 l.l 1.0 1.0 1.0 1.5 1.3 1.1 .5 1.2 .6 8 9 Other mortgages...................... 2.1 2.7 3.2 3.7 3.6 3.5 3.6 3.9 3.9 4.1 3.9 2.4 3.4 2.6 9 10 Other loans.................. .7 .5 .4 .5 1.5 1.7 .7 -.6 .1 1.3 1.6 3.1 1.5 2.4 10 11 Net increase in liabilities.................. 6.0 6.4 7.1 7.9 8.0 7.9 8.0 7.9 7.9 7.9 8.2 8.1 9.6 6.4 11 12 Life insurance reserves................ 3.6 4.0 4.2 4.7 4.6 4.7 4.7 4.6 4.6 4.5 4.7 4.6 5.1 5.0 12 13 Pension fund reserves.................. 1.4 1.7 2.0 2.1 2.3 2.1 2.1 2.1 2.2 2.2 2.4 2.4 2.2 2.2 13 14 Other............................................ 1.0 .7 .8 1.2 1.1 1.1 1.0 1.1 1.3 1.2 ,9 .7 2.4 -. 1 14 For notes see p. 1823, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1822 FLOW OF FUNDS OCTOBER 1967 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 H in IV I II in IV I II (1.4) Noninsured pension plans 1 Net acquis, of financial assets 5........ 4.0 4.4 4.9 4.9 5.9 5.2 5.1 5.0 6.1 4.5 6.4 6.4 4.7 6.1 1 2 Credit mkt. instr 6....................... 4.0 4.3 4.8 4.9 5.9 5.3 5.0 4.2 6.1 5.2 6.7 5.7 4.6 5.8 2 3 U.S. Govt, securities................ .2 .4 .4 -.3 * -.3 -.5 ♦ .4 -.4 .9 -1.0 -1.9 * 3 4 Corporate bonds....................... 1.2 1.5 1.6 1.5 1.8 1.7 1.7 .7 2.5 1.3 1.6 1.9 1.7 .4 4 5 Corporate stock........................ 2.2 2.2 2.2 3.1 3.7 3.0 3.3 3.2 2.8 4.0 3.8 4.1 4.6 5.4 5 (1.5) Other insurance companies 2 1 Ne D t e a m cq a u n i d s , d o e f p f o i s n i a t n s c a ia n l d a c ss u e r t r s e n 5 c .. y .. . . . . . .. 1.4 * 1.4 1.0 - 2 . . 0 1 1.6 - 2 .1 .4 - 2 .1 .4 1.5 * 1.1 1.9 1.6 2. .1 0 .8 1.5 * 2 1 3 Credit mkt. instr.6........................ 1.2 1.3 .8 1.9 1.4 2.3 2.3 1.3 1.0 1.7 1.3 1.7 .5 1.2 3 4 U.S, Govt securities............... . 1 .2 * -.4 -.2 .1 -.1 -.4 -.2 -.4 -.7 -1.3 -.6 4 5 State and local obligations....... .7 .8 .2 .6 .7 .7 .7 .5 .7 .7 .7 .8 1.2 1.1 5 6 Corporate bonds....................... . 1 .1 .4 1.1 .6 1.2 1.2 1.0 .8 .6 .4 .6 .2 .3 6 7 Corporate stock........................ .2 .2 .2 .2 .5 .5 .2 -. 1 -.1 .5 .6 1.0 .4 .5 7 (1.6) Finance companies 1 Net acquis, of financial assets 5....... 2.7 4.0 4.0 5.4 3.2 6.5 4.5 5.6 4.6 3.4 .2 4.4 -.5 .9 1 2 1- to 4-family mortgages......... .5 .8 .4 .5 -.6 .5 1.0 -.1 .4 -.6 -.7 -1.3 .5 1.2 2 3 Consumer credit.......................... 1.3 1.8 1.8 1.9 1.2 2.2 1.8 1.5 1.6 1.3 1.5 .6 .3 .7 3 4 Other loans.................................. .8 1.6 1.8 2.7 2.3 3.7 1.5 4.0 2.4 2.6 -.8 4.9 -1.6 -1.2 4 5 Net increase in liabilities.................. 2.6 4.0 4.0 5.1 2.9 6.2 5.4 4.6 4.3 4.6 -1.3 3.8 -.2 2.1 5 6 Corporate bonds......................... .3 1.4 2.1 1.9 .8 1.8 1.5 2.7 1.6 .3 1.9 -.8 1.5 -.5 6 7 Bank loans n.e.c....................... 1.0 (.6 .4 2.2 — 1.3 2.1 1.1 3.0 -.1 2.7 -5.5 -2.3 -4.5 2.3 7 8 Open mkt. paper......................... 1.2 1.0 1.5 1.0 3.4 2.2 2.8 -1.1 2.8 1.6 2.2 6.9 2.9 .3 8 (1.7) Security brokers and dealers 1 Net acquis, of financial assets......... .9 .6 .2 -.1 .3 2.4 -8.6 4.3 .4 2.3 -3.7 2.1 5.3 -5.4 1 2 U.S. Govt, securities.................... .7 -1.3 .7 -.3 .7 1.4 -5.3 1.8 1.8 -1.0 2.1 -.3 4.2 -6.4 2 3 Other securities........................... .4 .2 -.4 -.4 .6 -2.8 . 1 -2.1 2.6 -4.2 2.3 -.8 -.8 3 4 Security credit............................. -.2 1.5 -.5 .5 -.2 .2 -.5 2.3 .6 .6 -1.8 -.1 1.8 1.7 4 5 Net incr. in liab.—Security credit... .9 .5 .1 -.2 .1 2.3 -8.7 4.2 .3 2.2 -3.9 1.8 5.2 -5.4 5 6 From banks................................. 1.1 .2 .2 -.3 1 .8 -9.3 5.0 -1.6 .7 1.3 -1.0 2.6 -8.4 6 7 From agencies of fgn, banks....... -.2 .4 * -.3 . 1 . 1 .2 -.7 -.1 -.2 — .3 .8 -.3 7 8 Customer credit balances............ ♦ * * .3 .2 1.4 .4 -.2 2.0 1.7 -4.9 2.0 2.9 3.1 8 (1.8) Open-end investment companies 1 Net financial investment................... -.4 -.4 -.8 -1.0 -1.3 -.6 -.8 -1.8 -1.8 -.6 -.8 -2.1 -1.4 -.6 1 2 Net acquis, of financial assets 5... 1.5 .8 1.1 2.0 2.5 1.6 2.7 2.2 3.3 2.6 2.9 1.3 1.7 .8 2 3 Credit mkt. instr....................... 1.2 .8 1.1 1.6 2.0 1.1 2.4 1.9 3.5 1.5 1.2 1.6 2.1 3 4 Corporate stock........1....1......... .6 .7 1.2 1.0 1.6 1.1 1.9 1.7 .8 .3 1.1 3.0 2.2 4 5 Net stock issues7......................... 1.9 1.2 1.9 3.0 3.8 2.2 3.5 4.0 5.1 3.2 3.7 3.4 3.2 1.5 5 (J) Rest of the world 1 Net purch. of goods and serv (2-3).. 5.1 5.9 8.5 6.9 S.l 8.2 7.4 6.1 6.1 5.4 4.6 4.3 5.4 5.2 1 2 Purch. of goods and services 1... 30.3 32.3 37.1 39. 1 43.0 40.7 40.3 40.5 42.0 42.5 43.7 44.0 45.5 45.4 2 3 Sales of goods and services >....... 25.1 26.4 28.6 32.2 37.9 32.6 32.9 34.4 36.0 37.1 39.0 39.7 40.1 40.2 3 4 Net unilateral receipts from Govt.1. 2.7 2.8 2.8 2.8 2.9 3.1 2.9 2.6 3.4 2.9 2.8 2.5 2.9 3.1 4 5 Current surplus (4-1) 2.................. -2.5 -3.1 -5.7 -4.1 -2.2 -5.1 -4.5 -3.4 -2.7 -2.5 -1.8 -1.8 -2.5 -2.1 5 6 Net financial investment (7-14)........ -1.3 -2.8 -4.7 -3.7 -1.8 -4.6 -3.5 -3.2 -1.6 -1.8 -3.0 -.8 -1.1 .1 6 7 Net acquis, of finan. assets........... 2.6 3.4 3.4 2.0 3.6 1.8 1.2 1.2 1.4 6.2 2.4 4.5 2.0 8.6 7 8 Gold......................................... .9 .5 . 1 1.7 .6 2.4 .5 .5 .3 .8 .7 .5 .2 .1 8 9 U.S. dem. dep. and currency... .1 .1 .5 .1 -.2 -.5 .7 .8 .1 1.2 -1.9 -.3 -2.0 2.4 9 10 Time deposits........................... .6 1.0 1.4 .6 .9 .8 .2 .5 -.2 2.0 .6 1.2 1.2 2.4 10 11 U.S Govt, securities................ 1.3 .6 .5 -.2 -2.6 .9 -1.0 1.5 -2.6 -1.5 -4.0 -2.3 2.1 2. 1 11 12 Other credit market instr......... .2 .3 .1 -.1 1.1 -.7 -.8 -.1 .9 2.9 1.2 -.4 .7 3.1 12 13 Misc. financial assets............... -.4 1.1 .8 -.1 3.8 -1.1 1.6 -2.0 2.8 .7 5.7 5.8 -.3 -1.5 13 14 Net increase in liabilities.............. 3.9 6.2 8.2 5.7 5.4 6.4 4.7 4.4 2.9 8.0 3.4 5.3 3.1 8.5 14 15 Official U.S. foreign exchange 3 -.6 .1 .4 2.1 .3 -.6 -1.4 .6 .4 .5 -3.9 1.7 15 16 Securities.......................... 1.0 1.1 .7 .8 .4 .6 .8 .8 1.3 .3 .1 1.0 1.0 16 17 Loans 4.............................. 1.1 2.2 3.7 1.9 1.0 1.1 .2 1.9 1.0 2.0 .2 .8 3.5 3.8 17 18 Miscellaneous 5........................ 2.5 2.8 3.9 2.6 4.0 2.7 3.3 2.3 2.1 5.0 4.9 3.8 2.4 2.0 18 19 Discrepancy (5-6)6......................... -1.2 -.4 -1.0 -.4 -.4 -.4 -1.0 -.2 -1.1 -.7 1.3 -1.0 -1.3 -2.2 19 U.S. gold and fgn exchg. held by: 2 21 0 M U. o S n . e T ta r r e y a s a u u r t y h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . - - . . 8 7 -.4 * -.2 * -1. . 3 1 - - . . 3 2 -2 1 . . 2 9 -1 1 . . 5 3 -1. . 4 4 -2.1 .4 -. . 5 2 -. . 7 4 -. 1 - - 3 1 . . 1 0 1.7 * 2 2 1 0 For notes see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 FLOW OF FUNDS 1823 Notes to Table 4 (A) Households 1 Includes nonprofit organizations serving individuals. 4 Line 9 plus capital consumption on owner-occupied houses and nonprofit plant and equipment. . 2 Imputed saving associated with growth of government life 5 Includes net free balances with security brokers and miscel­ insurance and retirement reserves. From Tables 4(E), line 13, laneous assets not shown separately. and 4(F), line 6. 0 Policy loans, hypothecated deposits, and U.S. Govt, loans 3 Capital-gains dividends from open-end investments cos. 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 7 above. houses, included in Table 4(A). 10 Excludes corporations in Tables 4(C), (G), (H), and (I). 3 Change in work in process. 4 After inventory valuation adjustment. 11 Includes branch profits paid to foreign parents less branch c Excludes C.C.C.-guaranteed loans, treated as Govt, borrow­ profits received from abroad. ing and included in Table 4(E), line 30. 12 Direct investments abroad, foreign currency holdings, and 3 Includes corporate farms. unallocated current assets. 7 Noncorporate net income is treated as payment in full to 13 Mainly commercial paper and commercial loans from proprietors in the household sector. Gross saving consists of capital consumption allowances plus corporate farm retained finance companies. profits. 11 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 nonfinancial operation. See Table 4(A), line 5. t , tems on treatment of corporate taxes, and the discrepancy ” 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 consist of holdings by the domestic in cash budget except for small amounts in receipts. Lines 13 public of C.C.C., FNMA, Export-Import Bank, and all other and 24 are imputations reflected in neither national income nor certificates. In Table 3 they are grouped with nonguarantced cash budget. issues. Net movements in inventory under C.C.C. guarantee are 2 OASI, disability insurance, and unemployment programs. included in line 11. Loans and mortgages securing other loan Line 5 includes U.S. Govt, employment taxes; line 6, U.S. participations are included in U.S. Govt, financial assets. Govt, benefit payments to households. 8 E and H bonds held by households. tir 3 e m V e e n te t ra f n u s n ’ d s li . f e L i i n n e s ur 7 a n e c x e c lu an d d es G G o o v v t, t , em co p n lo tr y ib ee u ti a o n n d s R to . R t . h e r s e e ­ 0 Marketable issues due in less than 1 year plus part of those funds. due in less than 2 years. 4 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. 12 Corporate bonds, mortgages, and tax receivables. (G, H) Banking 1 Federal Reserve System plus those Treasury accounts in­ Reported bank data, as on page 1768, are frequently for last cluded in “Member Bank Reserves, Federal Reserve Bank Wednesday of month or other reporting date. Excludes banks in Credit, and Related Items.” Excludes Exchange Stabilization 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. 8 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 0 Includes deposits held outside Treasury. IMF; IMF deposits are net in line 3. 10 Bank and nonbank. 5 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 laneous, line 7. of foreign banks, and banks in possessions. 4 Includes consumer credit, not shown separately. 2 Lines 10, 11 of 1.1; lines 6, 7, and 8 of 1.6; and line 5 5 Includes cash and other assets, not shown separately. of I 8. 0 Includes mortgages, not shown separately. 3 Excludes deposits at FHLB, which are included in Miscel­ 7 Includes retained capital-gains dividends. (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. 3 Net foreign investment in national income accounts with opensite sign. G Direct investment abroad, foreign currencies held by other 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 an­ Business but are un revised before 1967 relative to the Aug. nual rates. These tables reflect revisions in income and product Bulletin tables in financial data. Financial revisions will ap­ accounts for 1964-67 published in the July Survey of Current pear with publication of the third-quarter data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Financial Statistics International U.S. balance of payments ...................................................................................................... 1826 Foreign trade............................................................................................................................... 1827 U.S. gold transactions and reserve assets ........................................................................... 1828 U.S. position in the IMF ........................................................................................................ 1829 International capital transactions of the United States ..................................................... 1830 Reported gold reserves of central banks and governments ............................................ 1842 Gold production ........................................................................................................................ 1843 Money rates in foreign countries ........................................................................................... 1844 Arbitrage on Treasury bills .................................................................................................... 1845 Foreign exchange rates ........................................................................................................... 1846 Guide to tabular presentation ............................................................................................... 1752 Index to statistical tables ......................................................................................................... 1853 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 arc available in Bankins 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). 1825 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1826 U.S. BALANCE OF PAYMENTS OCTOBER 1967 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1966 1967 Item 1964 1965 1966^ I II 111 IV, I IIP Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total i............................. 37,099 39,147 43,039 10,511 10,618 10,913 10,997 11,383 11,338 Merchandise.......................................................... 25,297 26,244 29,168 7,203 7,181 7,382 7,402 7,691 7,723 Military sales......................................................... 747 844 847 209 222 206 210 339 334 Transportation............................................... 2,324 2,390 2,589 636 642 661 650 669 658 Travel.................................................................... 1,207 1,380 1 ,573 374 383 408 408 422 390 Investment income receipts, private,..................... 4,929 5,376 5,650 1 ,316 1,382 1,444 1,508 1,423 1,386 Investment income receipts, Govt.................... 460 512 595 153 153 143 146 162 164 Other services........................................................ 2,135 2,401 2,617 620 655 669 673 677 683 Imports of goods and services—Total...................... -28,637 -32,203 -37,937 -8,997 -9,265 -9,762 -9,913 -10,034 -10,038 Merchandise........................................................ -18,621 -21 ,472 -25,510 -6,025 -6,225 -6,580 -6,680 -6,692 -6,587 Military expenditures............................................ -2,861 -2,921 -3,694 -861 -911 -953 -969 -1,045 -1,052 Transportation...................................................... -2,462 -2,674 -2,914 -722 -709 -727 -756 -759 -718 Travel.................................................................... -2,211 -2,438 -2,657 -637 -674 -672 -674 -685 -847 Investment income payments............................... -1,455 -1,729 -2,074 -475 -471 -565 -563 -557 -545 Other services........................................................ -1,027 -969 -1,088 -277 -275 -265 -271 -296 -289 Balance on goods and services 1............................... 8,462 6,944 5,102 1,514 1,353 1,151 1,084 1,349 1,300 Remittances and pensions......................................... -896 -1,024 -1,010 -241 -245 -278 -246 -264 -390 1. Balance on goods, services, remittances and pensions..................................................... 7,566 5,920 4,092 1,273 1,108 873 838 1,085 910 2. U.S. Govt, grants and capital flow, net................. -3,560 -3,375 -3,446 -975 -988 -759 -724 -1,205 -931 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims....... -4,263 -4,277 -4,680 -1,185 -1,194 -1,177 -1,124 -1,419 -1,237 Scheduled repayments on U.S. Govt, loans... 580 681 806 207 199 192 208 214 306 Nonscheduled repayments and selloffs............. 123 221 428 3 7 226 192 * 3. U.S. private capital flow, net............................... -6,542 -3,743 -4,213 -981 -1,135 -932 -1,165 -958 -1,130 Direct investments............................................ -2,435 -3,418 -3,543 -634 -1,006 -900 -1,003 -622 -684 Foreign securities............................................ -677 -758 -482 -358 9 -50 -83 -263 -171 Other long-term claims: Reported by banks................................... -941 -232 337 123 -27 73 168 150 153 Reported bv others...................................... -343 -88 -112 -17 -51 -28 -16 -67 -143 Short-term claims: Reported by banks.................................... -1,523 325 -84 85 -61 16 -124 -88 -329 Reported by others....................................... -623 428 -329 -180 I -43 -107 -68 44 4. Foreign capital flow, net, excluding change in liquid assets in U.S,............................ 685 278 2,512 265 1,091 376 780 824 1,215 Long-term investments. . .................................. J 09 -68 2,176 309 1,014 180 673 679 934 Short-term claims............................................. 113 149 269 39 63 112 55 57 127 Nonliquid claims on U.S. Govt, associated with— Military contracts.......................................... 228 314 341 44 45 106 146 103 168 U.S, Govt, grants and capital....................... 50 -85 -213 -64 -1 -12 -136 -36 -14 Other specific transactions............................ 208 -25 -12 -10 -4 13 -11 21 * Other nonconvertible, nonmarketable, me­ dium-term U.S. Govt, securities3............. -23 -7 -49 -53 -26 -23 53 * * 5. Errors and unrecorded transactions...................... -949 -415 -302 -233 -198 277 -148 -284 -576 Balances A. Balance on liquidity basis Seasonally adjusted (= 1+2+3+4+5)... -2,800 -1,335 -1,357 -651 -122 -165 -419 -538 -512 Less: Net seasonal adjustments.............. -604 27 530 47 -303 -319 Before seasonal adjustment....................... -2,800 -1,335 -1,357 -47 -149 -695 -466 -235 -193 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted........................ -2,800 -1,335 -1,357 -651 -122 -165 -419 -538 -512 Plus: Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad.......................... 1,454 116 2,697 154 492 1,062 989 -1,003 341 Other private residents of foreign countries.. 343 306 212 109 66 91 -54 80 13 International and regional organizations other than IMF........................................ -243 -291 -525 -38 -355 -24 -108 -36 -80 Less: Change in certain nonliquid liabilities to foreign central banks and govts............... 303 100 802 17 256 103 426 330 576 Balance B, seasonally adjusted......................... -1,549 -1,304 225 -443 -175 861 -18 -1,827 -814 Less: Net seasonal adjustments....................... -846 210 456 180 -545 -132 Before seasonal adjustment............................... -1,549 -1,304 225 403 -385 405 -198 -1,282 -682 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE 1827 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1966 1967 Item 1964 1965 1966' I II III IV' I IIP Transactions by which balances were settled—-Not seasonally adjusted A. To settle balance on liquidity basis.............................. 2,800 1,335 1,357 47 149 695 466 235 193 Change in U.S. official reserve assets (increase, —)........................................... 171 1,222 668 424 63 82 -6 1,027 -419 Gold................................................. 125 41,665 571 68 209 173 121 51 15 Convertible currencies........................... -220 -349 -540 222 -163 -426 -173 1,007 -424 IMF gold tranche position....................... 266 4-94 537 134 22 335 46 -31 -10 Change in liquid liabilities to all foreign accounts 2,629 113 789 -377 81 613 472 -792 612 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities 5............................................. 376 122 -945 -367 -176 -226 -176 72 46 Marketable U.S. Govt, bonds and notes 5. -58 -20 -245 -5 6 -254 8 5 52 Deposits, short-term U.S. Govt, securities, etc............................................... 757 -154 -582 -611 206 -146 -31 -177 415 IMF (gold deposits)................................... 34 177 131 18 28 17 5 Commercial banks abroad.......................... 1,454 116 2,697 404 316 1,144 833 -753 161 Other private residents of foreign countries. 343 306 212 109 66 91 -54 80 13 Internationa’ and regional organizations other than IMF................................ -243 -291 -525 -38 -355 -24 -108 -36 -80 B. Official reserve transactions................................. 1,549 1,304 -225 -403 385 -405 198 1,282 682 Change in U.S. official reserve assets (increase, —)..,........................................ 171 1,222 568 424 68 82 -6 1,027 -419 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)..................................................... 1,075 -18 -1,595 -852 54 -598 -199 -83 518 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S private organizations.................. 149 -38 788 43 284 88 373 309 605 Of U.S. Govt............................................ 154 138 14 -18 -21 23 30 29 -22 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 31,228 2,274 2,620 1,418 3 1,199 1,948 2,296 622 3 28 327 325 Feb.................... 2,058 3 1,623 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 2,569 1,518 31,861 2,068 2,185 557 3 878 501 384 Apr................... 2,061 3 2,406 2,359 2,659 1,537 31,811 2,109 2,224 524 3 595 250 435 May.................. 2.047 3 2,299 2,411 2,545 1,530 3 1,797 2,063 2,119 517 3 503 348 426 June.................. 2,077 3 2,235 2,490 2,584 1,514 31,848 2,135 2,228 563 3 386 354 355 July................... 2,119 2,300 2,456 2,591 1,573 4 1,742 2,205 2,235 546 4558 251 356 Aug................... 2,100 2,329 2,455 2,561 1,608 1,825 2,113 2,115 492 504 342 446 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 3 5,589 7,216 7,791 4,395 3 4,666 6,020 6,684 1,778 3 923 1,196 1,106 II....................... 6,185 3 6,940 7,259 7,788 4,581 35,456 6,306 6,571 1,604 31,484 953 1,217 Ill..................... 6,480 6,920 7,453 4,744 45,425 6,618 1,736 4 1,495 834 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. 5 Sum of unadjusted figures. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Note.—Bureau of the Census data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1828 U.S. GOLD TRANSACTIONS AND RESERVE ASSETS OCTOBER 1967 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Nel sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1966 1967 Area and country 1958 1959 1960 1961 1962 1963 1964 1965 1966 II III IV I II Western Europe: Austria.......................... -84 -83 -1 -143 -82 -55 -100 -25 Belgium............................. -329 -39 -141 -144 -63 -40 -83 France............................... -266 -173 -456 -518 -405 -884 -601 -221 -277 ........... Germany, Fed. Rep. of. . . -34 -23 -225 Italy................................... -349 100 200 -80 —60 -60 Netherlands...................... -261 -30 -249 -25 -60 -35 Spain................................. 32 -114 -156 -146 -130 -32 -180 Switzerland....................... -215 20 -324 -125 102 -81 -50 -2 ii -20 -30 United Kingdom............... -900 -350 -550 -387 329 618 150 80 -7 126 -20 3 -34 Bank for Inti Settlements. — 178 -32 — 3b -23 Other................................. -41 -48 -96 -53 -12 1 -7 -37 -50 -4 -1 -12 -18 20 Total.......................... -2,326 -827 -1,718 -754 -1,105 -399 -88 -1,299 -659 -221 -172 -92 -15 -44 Canada................................. ........... 190 . .......... 200 50 50 ...........50 Latin American republics: Argentina...................... 67 -50 -90 85 -30 -39 -28 -11 * * Brazil............................. -11 -2 -2 57 72 54 25 -3 -1 -1 * * * Colombia...................... -6 38 10 29 7 * Venezuela...................... 65 -25 Other................................ 2 -35 -42 -17 -5 -11 -9 -13 -6 -3 -5 8 -2 13 Total........................ 69 19 -100 -109 175 32 56 17 -41 -4 -34 -3 -3 12 Asia: Japan................... -30 -157 -15 -56 Other................................. -4 -28 -97 l-101 2 -93 12 3 -24 -30 -2 -12 to -20 -1 Total.......................... -34 -186 -113 -101 -93 12 3 -24 -86 -2 -12 10 -20 -1 All other............................... -3 -5 -38 -6 -1 -36 -7 -16 -22 -8 _4 * 2 -6 Total foreign countries......... -2,294 -998 -1,969 -970 -833 -392 -36 -1,322 -608 -185 -172 -86 -36 12 Inti. Monetary Fund........... 3 -44 4 300 150 ........... 5-225 M77 6 18 6 29 .........6. .16 65 Grand total............... -2,294 -1,041 -1,669 -820 -833 -392 -36 -1,547 -431 -167 -143 -86 -20 17 > Includes sales of $21 million to Lebanon and $48 million to Saudi million in 1956, and $300 million in 1959 and in 1960) with the right of Arabia. repurchase; proceeds from these sales invested by IMF in U.S. Govt, 2 Includes sales of $21 million to Burma, $32 million to Lebanon, and securities. $13 million to Saudi Arabia. . 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 P OSITION IN IMF (In nullions of dollars) Gold stock 1 Con­ Reserve Gold stock 1 Con­ Reserve End of year r T es o e t r a v l e v fo e r r e ti i b g l n e pos i i n tion End of month r T es o e t r a v l e v fo e r r e ti i b g l n e pos i i n tion assets Total 2 Treasury currencies IMF 3 assets Total 2 Treasury c c u i r e r s e n 5 ­ IMF 3 1957....................... 24 832 22,857 22.'”'1 1,975 1966—Sept............ 14,876 13,356 13,258 1,148 372 1958 ....................... 22,540 20,582 " '4 1,958 Oct............. 14,880 13,311 13^257 1,213 356 Nov............ 14'715 13,262 13,159 1’108 345 1959...................... 21,504 19,507 19 456 1,997 Dec............ 14’882 13,235 13,159 1,321 326 I960....................... 19,359 17,804 17,767 1,555 1967—Jan......1..4..,.1..96 13,202 13,157 645 349 1961....................... 18,753 16,947 !< ’89 116 1.690 Feb............. 13,998 13,161 13,107 480 357 1962....................... 17^220 16,057 i■,978 99 1,064 Mar............ 13,855 13,184 13,107 314 357 Apr............. 13,906 13,234 13’109 315 357 1963...................... 16,843 15,596 15,513 212 1,035 May........... 13,943 13,214 13,109 363 366 1964....................... 16,672 15,471 15,388 432 769 June........... 14'274 13,169 13,110 738 367 July............ 14,224 13,136 13J08 719 369 1965...................... 15,450 413,806 413.733 781 4 863 Aug. 14,605 13,075 13,008 1,162 368 1966....................... 14,882 13,235 13,159 1,321 326 Sept............ 14^649 13^77 13'006 1,200 372 1 Includes (a) gold sold to the United States by the International Mon­ 4 Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966 In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, sec Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 5 For holdings of F.R. Banks only, see pp. 1762 and 1764. J In accordance with IMF policies the United States has the right to draw foreign currencies equivalent to its reserve position in the IMF vir­ Note.—See Table 18 for gold held under earmark at F.R. Banks for tually automatically if needed. Under appropriate conditions the United foreign and international accounts. Gold under earmark is not included States could draw additional amounts equal to the U.S. quota. See Table 5. in the gold stock of the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 U.S. POSITION IN THE IMF 1829 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. transactions with IMF Transactions by U.S. other countries reserve Period with IMF p in o s I i M tio F n P s t u d a io b y o n s m l o l c s a f e r r i n . i s p n t ­ s by s g N I a o M l e l e d t s F i D c f r c o u a i r r o e w e r s f i e i g n n 2 n g ­ s I i d M n o c i F l o n la m n rs e e t D d ra o w o ll f a in rs gs R d m o e e i l p n l n a a t r y s s ­ c T ha o n ta g l e Amount P q e U r u o . o c S f t e . a nt p ( e e r n io d d o ) f 3 1946—1957............................ 2,063 4 594 -45 -2,664 827 775 775 28 1 975 1958............................ -2 -252 271 17 792 29 1 *958 1959............................ 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 1 *690 1962............................ 17 - 110 719 626 3,061 74 1,064 1963............................ 16 -194 207 29 3,090 75 1 035 1964........................... 525 18 -282 5 266 3,356 81 769 1965........................... 435 12 — 282 165 3 521 85 5 863 1966........................... 776 680 15 -159 1 1,313 4,834 94 326 1966—Sept............................ 35 1 -12 1 25 4,788 93 372 Oct....................... 31 1 -16 16 4,804 93 356 Nov................. 12 2 -3 11 4.815 93 345 Dec............................. 30 -11 19 4,834 94 326 1967—Jan.............................. 3 —26 -23 4,811 93 349 3 — 10 —7 4,804 93 357 Mar....................... 1 -2 -1 4,803 93 357 Apr............................. 4 803 93 357 4 -13 — 9 4,794 93 366 June........................... 2 -3 -1 4’793 93 367 July............................ 1 -3 —2 4’791 93 369 Aug............................. 2 -1 1 4,792 93 368 -1 -3 -4 4J88 93 372 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 4 Represents a $600 million IMF gold sale to United States (1957), IMF 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 IMF of currencies of other members 5 Includes $259 million gold subscription to the IMF 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 published by the IMF from June 1965 through Jan. 1966, this gold sub­ holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. scription was included in the U.S. gold stock and excluded from the Drawings of dollars by other countries reduce the U.S. commitment to reserve position. repay by an equivalent amount. . 3 Represents the U.S. gold tranche position in the IMF (the U.S. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota minus the holdings of dollars of the IMF), which is the amount quota was increased to $4,125 million in 1959 and to $5,160 million in that the United States could draw in foreign currencies virtually automati­ Feb. 1966. Under the Articles of Agreement, subscription payments equal cally if needed. Under appropriate conditions, the United States could to the quota have been made 25 per cent in gold and 75 per cent in dollars. draw additional amounts equal to its quota. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1830 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 1967 6. U. S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Inti. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions Official institutions J Banks and other foreigners regional organizations5 Nonpe E r o n i f o d d Total Total p G o d o e s l - i d t1 i m G nv e o e n l s d t t 2 - Total i i p S b t n l i t i o a e h e a o r U s n b r o y t m k e i r . r l S t d s e ­ ­ . ­ M n b G a U a o a o o b n r n t .S k v l e d d e . t s e s . 4 t­ c m T o b a U n a a o i r u b b e n r v n r . l a k l S y d e e d e s e . r s - t t ­ ­ Total i i p S t l b n i i t o e a h a e o s r U n b r o y t m k e i r . r l S t d e s ­ ­ . ­ M b n G o a U o a a n o b n r t . k e S v l d d e s t e . s . 4 t­ Total i i n p S t l b i t i o e h a e a U o r s n r b o y t . m k e i S r r l t d s e . ­ ­ ­ 6 M n b G U o a a a o o b n t r n . e v k S l d d e s t e . s . 4 t­ notes 1957.. 715,825 200 200 7,917 5,724 n.a. 542 n.a. 1958., 716,845 200 200 8,665 5,950 552 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 19618 / 1 2 2 2 2 , , 8 9 5 3 3 6 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 9 4 4 0 0 8 8 9 9 0 0 8 8 , , 2 3 7 5 5 7 7 7, , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 ' , 9 9 4 4 8 9 7 7 0 0 3 4 1 1 , , 2 2 4 4 5 5 19628. (24,068 800 800 12,748 11,997 751 8,359 7,911 448 2,161 1,250 911 124,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 1963 8 1 (2 2 6 6 , , 3 3 6 2 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 4 4 , , 3 3 8 5 7 3 1 1 2 2 , , 4 4 6 6 7 7 1 1 , , 2 1 1 8 7 3 7 7 0 0 3 3 9 9 , , 2 21 0 4 4 8 8 , , ' 8 8 6 6 3 3 3 34 5 1 1 1 1 , , 9 96 6 5 0 8 8 0 0 8 8 1 1 , , 1 1 5 5 7 2 19648 1 (2 2 8 9 , , 9 0 5 0 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 5 5 ^ ,4 4 2 28 4 1 1 3 3 ' ' 2 2 2 2 4 0 1 I ' J 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 8 25 0 3 3 7 7 6 6 1 1 ^ ^ 2 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—July. 29,511 984 184 800 14,469 13,033 853 583 12,978 12,481 497 1 ,080 647 433 Aug. 29,697 1 ,003 203 800 14,264 12,905 852 507 13,391 12,870 521 1 ,039 650 389 Sept. 29,432 I ,011 211 800 13,799 12,515 852 432 13,608 13,121 487 1,014 625 389 Oct.. 30,212 1 ,011 211 800 13,966 12,909 852 205 14,245 13,739 506 990 600 390 Nov. 30,548 1,011 211 800 14,018 12,953 860 205 14,546 14,027 519 973 612 361 Dec. a '29,904 1,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 29,776 1 ,011 211 800 13,656 12,540 860 256 14,204 13,676 528 905 580 325 1967-—Jan.. 28,956 I ,012 212 800 13,332 12.144 860 328 13,657 13,129 528 955 651 304 Feb.. 28,910 1 ,013 213 800 13,349 12,156 865 328 13,693 13,163 530 855 608 247 Mar. 28,984 1 ,028 228 800 13,556 12,363 865 328 13,531 13,001 530 869 637 232 Apr.. 29,373 J ,030 230 800 14,100 12,871 901 328 13,381 12,852 529 862 629 233 May. 29,582 1 ,030 230 800 14,355 13,090 917 348 13,356 12,827 529 841 607 234 June. 29,605 1 ,033 233 800 14,075 12,784 917 374 13,705 13,167 538 792 562 230 July” 30,029 1 ,033 233 800 14,112 12,821 917 374 14,048 13,507 541 836 609 227 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 non-negotiable, non-interest-bearing special U.S. breakdown of transactions by type of holder estimated for 1960-63. notes held by other 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, that 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

OCTOBER 1967 INTLCAP1TAL TRANSACTIONS OF THE U.S. 1831 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 ri n e s E W u e ro st p e e rn 1 Canada A re m pu e b ri l c ic 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................................................................................... 15,424 9,220 1,608 1,238 3,020 160 178 1965................................................................................... 15,372 8,608 1,528 1 497 3,300 194 245 1966—July........................................................................ 14,469 8,184 1,288 1,159 3,380 234 224 Aug......................................................................... 14,264 8,008 1,221 1,153 3 411 252 219 Sept....................................................................... 13,799 7,585 1,215 1,049 3 459 266 225 Oct..................................................................... 13,966 7,687 1,196 1,110 3,464 282 227 Nov..................................................................... 14,018 7,758 1,212 1,101 3,430 293 224 Dec,2.................................................................. /13,600 7,488 1J89 1,134 3,284 277 228 (13,656 7,488 1,189 1,134 3,340 277 228 1967—Jan.......................................................................... 13,332 7,236 1,186 1,139 3,255 276 240 Feb......................................................................... 13,349 7,285 1334 1,167 3,266 255 242 Mar....................................................................... 13^556 7,493 1127 1,246 3 204 259 727 Apr......................................................................... 14,100 7,832 1J56 1,455 3,144 284 229 May..................................................................... 14,355 8,017 1,154 1,508 3,155 284 237 June........................................................................ 14,075 8,216 909 1,290 3,130 270 260 July®....................................................................... 14J12 8,299 909 r, 305 3,122 246 231 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 lines 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 er d i o o d f G to r t a a n l d 1 Total 1 Inti.1 gi R on e­ al2 Total c O i f a f 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 1,411 136 21,330 12,467 8 863 10,770 2,988 3,137 4 001 241 194 19644.......................... 25’518 1'618 1,447 171 23 900 13 220 10 680 12,236 2,984 3 563 4 687 238 192 1965............................ 25,551 1’479 1,361 118 24,072 13 066 11 006 11,627 2 574 4 027 5 286 280 278 1966—Aug................. 27,225 1,450 1,344 106 25,775 12,905 12,870 13,785 2,164 3,817 5,405 339 264 Sept.................. 27’061 1'425 1,298 127 25^636 12,515 13,121 13'534 2’191 3,800 5,481 363 267 Oct........... 28,048 1,400 1'274 126 26^648 12’909 13'739 14’178 2,400 3’910 5 517 376 268 Nov................. 28’392 1'412 1’294 118 26,980 12,953 14^027 14,574 2,456 3,861 5,425 398 266 Dec. 5............ / I 2 2 7 7 , , 5 '7 9 2 6 4 1 1, 3 3 8 8 1 0 1 1, 3 2 7 7 0 0 1 1 1 1 1 0 2 2 6 6 , , 3 2 4 1 3 6 1 12 2 , 3 5 8 4 4 0 1 1 3 3 , , 8 6 5 7 9 6 1 1 4 3 ^ ,9 0 3 0 3 0 2 2 7 3 5 0 0 9 2 3 3 , , 8 8 8 8 3 3 5 5 , 3 2 9 4 9 7 3 3 8 8 7 5 2 2 6 6 6 6 1967—Jan................... 26.724 1,451 1,298 153 25 273 12,144 13,129 13,204 2,358 3,918 5 118 390 285 Feb.................. 26,727 1'408 1,277 131 25,319 12,156 13363 13,321 2,227 3,971 5 137 379 284 Mar.................. 26^801 1 337 1,315 122 25,364 12,363 13,001 13’311 2'265 4,063 5,089 357 278 Apr.................. 27,152 1 329 1'311 118 25,723 12,871 12,852 13'406 2398 4,273 5 082 389 275 May................ 27 ,'324 1,407 1'287 120 25,917 13,090 12,827 13,424 2,329 4366 5 129 392 277 June................. 27’313 1'362 1'252 110 25,951 12,784 13,167 13,899 2,083 4,148 5 142 376 303 July*................ 27'737 1,409 1'296 113 26,328 12,821 13307 14,141 2,274 4,131 5 J61 339 283 Aug.*.............. 28 350 1,378 1,249 129 27,072 12,680 14,392 14335 2366 4,019 5,209 366 277 8a. Europe Ger­ E p n er d i o o d f Total Austria Belgium m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece Italy N l e an th d e s r­ Norway Po g r a t l u­ Spain Sweden Rep. of 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 z^did 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—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 /14,000 196 420 305 58 1,071 2,583 129 1,410 364 283 358 162 656 113,933 196 420 305 58 1,070 2,538 129 1,410 364 283 358 162 656 1967—Jan. . .. 13,204 190 426 315 69 992 2,162 138 1,255 294 246 363 191 609 Feb....... 13,321 182 421 307 69 966 2,375 127 1,208 320 258 373 147 628 Mar.. . . 13,311 181 410 305 65 948 2,412 110 1,232 332 274 350 142 615 Apr...... 13,406 150 426 297 94 929 2,392 117 1,319 328 287 353 121 623 May.... 13,424 159 480 274 89 958 2,376 108 1,410 402 301 345 117 651 June,... 13,899 173 557 276 96 948 2,342 103 1,422 396 348 352 122 659 July*. .. 14,141 197 545 262 91 1,021 2,297 106 1,573 405 379 357 181 660 Aug,*.. 14,935 181 563 235 91 1,064 2,278 122 1,773 367 396 370 191 674 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1832 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 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 i n tz d er­ Turkey U K d n o i i n m t g e ­ d Y sl u av g i o a ­ W E O u e t r s h o te e p r r e n 6 U.S.S.R. E E O a u s t r h t o e e p r r n e Total A t r i g n e a n­ Brazil Chile Co b l i o a m­ Cuba Mexico 1963................ 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—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 11,805 43 3,839 37 235 8 40 3,883 418 299 261 178 8 632 Dec.5... U,805 43 3,817 37 234 8 40 3,883 418 299 261 178 8 632 1967—Jan....... 1,699 38 3,754 35 386 6 36 3,918 414 297 242 170 8 636 Feb....... 1,723 29 3,794 37 312 6 37 3,971 412 308 247 162 9 695 Mar. ... 1,686 30 3,833 36 320 3 27 4,063 459 319 248 174 9 699 Apr....... 1,700 31 3,814 34 355 4 34 4,273 524 339 258 195 9 704 May.... 1,735 25 3,531 41 386 4 30 4,366 645 331 252 158 9 762 June.... 1,783 26 3,667 33 557 5 34 4,148 578 249 249 169 8 717 July”. .. 1,714 23 3,641 27 630 4 30 4,131 603 219 233 153 8 748 Aug. ”, . 1,648 23 4,315 25 581 4 35 4,019 609 196 229 135 9 704 8b. Latin America—Continued 8c. Asia E pe n r d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ O L r t e . h A p e . . r B B e a r h m & am ud a a s A S n u N t r i e i l n l t e h a s . m & A O L m a t e h t r i e n i r c a Total C M la h a n i i n d n a ­ H K o o n n g g India n d I e n o si ­ ­ 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—Aug...... 145 227 166 698 537 158 117 20 5,405 36 128 134 49 106 Sept...... 149 216 156 679 510 179 115 21 5,481 36 135 151 53 115 Oct....... 148 237 156 738 521 178 121 23 5,517 36 142 151 62 108 Nov...... 152 236 161 694 517 174 108 24 5,425 36 135 167 60 102 r 150 249 161 707 522 177 104 17 5,299 36 142 180 54 117 \150 249 161 707 522 177 104 17 5,247 36 142 179 54 117 1967—Jan........ 147 239 164 750 533 192 108 19 5,1(8 36 147 198 62 109 Feb....... 147 234 167 718 550 198 107 18 5,137 36 140 206 51 113 Mar....» 152 257 168 704 563 184 107 19 5,089 36 142 205 46 100 Apr....... 160 245 156 776 578 204 107 18 5,082 36 150 217 51 104 May.... 145 257 155 732 576 218 107 20 5,129 36 167 223 49 107 June.... 145 265 133 691 567 236 121 19 5,142 36 158 216 47 166 July”... 155 250 136 764 543 192 110 17 5,161 36 165 220 58 167 Aug. ” .. 157 257 128 725 520 209 116 24 5,209 36 181 242 50 154 8c. Asia—Continued 8d. Africa 8e. Other countries E pe n r d i o o d f Japan Korea P p h i i n l e ip s ­ T w a a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) r M oc o co ­ A So fr u i t c h a ( U E . g A y . p R t) . A O f t r h ic e a r Total 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—Aug......... 2,760 129 316 242 603 902 339 12 35 56 22 215 264 236 28 Sept......... 2,739 134 317 244 612 945 363 13 40 64 15 231 267 240 27 Oct.......... 2,680 138 315 246 612 1,028 376 12 41 64 26 232 268 243 25 Nov......... 2,624 158 288 238 611 1,007 398 14 38 73 45 229 266 242 24 [ 2,691 172 286 232 598 791 387 15 32 71 39 230 266 243 22 1 2,667 162 285 228 598 779 385 15 31 71 39 229 266 243 22 1967—Jan.......... 2,560 171 282 235 610 708 390 13 33 61 33 250 285 262 23 Feb...... 2,506 181 271 232 635 766 379 13 31 62 22 251 284 258 26 Mar........ 2,493 178 255 229 658 748 357 13 32 58 34 220 278 252 26 Apr...... 2,448 175 267 227 655 753 389 11 30 56 26 266 275 249 25 May..... 2,449 168 268 225 663 773 392 11 32 58 18 273 277 253 24 June..... 2’488 171 260 227 617 755 376 10 31 67 18 250 303 276 27 July”....... 2,409 190 276 227 663 749 339 13 35 63 15 214 283 254 28 Aug.”.... 2,401 167 271 230 685 791 366 17 33 73 21 223 277 252 25 1 Data exclude the "holdings of dollars” of the International Monetary follows (in millions of dollars): Total +50; Foreign other +50; Europe Fund. — 17: Canada +1; Latin America +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. 6 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

OCTOBER 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1833 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 1967 1965 1966 1967 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Iceland........................................ 5.8 4.0 6.6 5.7 Iraq.......................................... 12.0 27.1 17.6 n.a. Ireland, Rep. of..................... 6.2 6.6 8.9 7.4 Jordan...................................... 16.0 16.0 39.7 45.2 Luxembourg............................... 21.1 28.2 25.3 21.7 Kuwait................................ 35.5 24.6 49.2 28.6 Laos.......................................... 3.2 5.7 4.6 6.5 Other Latin American republics: Lebanon................................., 99.7 92.0 100.1 112.2 Bolivia....................................... 67.4 64.4 66.9 57,9 Malaysia................................... 25.9 31.2 38.3 34.9 Costa Rica.................................. 34.2 32.9 34.6 41.9 Pakistan.................................... 19.4 21.0 49.2 45.3 Dominican Republic.................. 72.3 54.3 53.2 53.9 Ryukyu Islands (inch Okinawa). 24.0 39.5 815.9 31.2 Ecuador.................................... 69.6 62.3 86.3 92.4 Saudi Arabia............................. 283,6 291.0 176.1 96.4 El Salvador................................. 67.0 78.3 68.9 96-4 Singapore. .......................... 8.9 4.9 34,6 n.a. Guatemala.................................. 68.1 86.9 64.2 83.9 Syria.......................................... 4.0 4.8 3.4 4.7 Haiti........................................... 16.3 16.7 16.3 16.8 Vietnam.................................... 39.0 123.8 132.0 146.3 Honduras.................................... 31.4 43.2 26.8 28.6 Jamaica...................................... 8.6 11.5 11.7 19.3 Other Africa: Nicaragua................................... 67.0 75.0 72.8 62.7 Algeria...................................... 7.6 13.6 11.3 n.a. Paraguay.................... 13.8 15.0 14.9 16.6 Ethiopia, (inch Eritrea)........ 44.1 58.9 53.5 40.2 Trinidad & Tobago.................... 3.6 6.3 4.7 5.4 Ghana..................................... 2.6 2.9 6.9 5.3 Liberia.......................... 17.9 19.7 21.2 21.6 Other Latin America: Libya........................................ 34.8 26.7 37. 1 76.0 British West Indies..................... 11.5 8.9 14.6 14.2 Mozambique............................. 1.6 1.7 5.0 n.a. French West Indies & French Nigeria...................................... 21.7 20.3 25.7 n.a. Guiana.................................... 2.2 1.5 1.3 1.7 Somali Republic....................... .8 .9 .8 .8 Southern Rhodesia................... 3.3 3.5 2.7 3.3 Other Asia: Sudan........................................ 3.7 3.3 3.4 6.7 Afghanistan................................ 5.6 8.0 9.5 7.8 Tunisia..................................... 1.8 1.0 1.1 1.0 Burma................................. 49.1 34. 6 34.4 n.a. Zambia................................. 7.2 16.1 34.7 n.a. Cambodia............................. 2.7 3.1 1.1 1.3 Ceylon........................................ 2.4 3.3 3.2 2.7 All other: Iran............................................. 66.9 79.2 36.6 44.0 New Zealand............................ 18.7 27.1 13.6 16.7 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; for explanation see note following Tables 17 and s Data exclude $12 million resulting from changes in reporting cover­ 18. Data exclude also U.S. Treasury letters of credit and non-negotiable, age and classification. non-interest-bearing special U.S. notes held by the Inter-American De­ Note.—Short-term liabilities are principally deposits (demand and velopment Bank and the International Development Association. time) and U.S. Govt, securities maturing in not more than 1 year from For data on long-term liabilities, see Table 14. 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 institutions1 To all other foreigners Payable End of period Total in foreign Deposits U.S. Deposits U.S. currencies Total T bi r l e ls a s a u n r d y Other 3 Total T bi r l 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 3,990 8 727 2,650 3,377 1 531 1 271 72 503 90 1965................................. 25^51 21,905 6 518 3 963 8,269 3 155 3 587 1 574 1 594 87 332 59 1966—Aug............... 27,225 23,016 8 147 3 701 7 529 3 638 3,653 1 413 I 765 81 394 556 Sept... 27,061 22,615 7,840 3,846 7/363 3*566 3,839 1'531 1*803 108 397 608 Oct........................ 28'048 23;526 8 381 3,998 7 671 3,476 3,820 1 479 1*816 98 427 702 Nov.,............ 28,392 23,896 8,542 4,065 7,896 3,393 3,790 1,492 1 809 89 400 705 Dec. ^.............. / 27,'724 23,371 8,531 4,000 7,464 3,376 3,744 1,513 1,819 83 329 609 I 27,596 23,264 8,371 4,050 7,464 3,379 3,744 1,513 1,819 83 329 588 1 %7—jan................ 26,724 22,499 7,663 3,965 7,386 3 485 3,712 1,460 1 825 80 347 514 Feb....................... 26,727 22,445 7 573 3,860 7 559 3 453 3,776 1 512 1 845 89 330 506 Mar....................... 26,801 22,477 7,463 3,663 7 910 3^41 3,822 1,556 I 853 79 334 504 Apr....................... 27,152 22;824 7,469 3,584 8 277 3 494 3,783 1 535 1 845 73 330 545 May...................... 27’324 22^80 7,656 3 ,’450 8 253 3 621 3,824 1 577 1 855 86 305 521 June...................... 27'313 22,992 7,874 3,589 7,866 3; 663 3,825 1 615 1,844 68 297 496 July®.................... 27 ,’737 23;422 8,199 3,705 7 891 3,627 3,812 1 580 1 871 68 294 502 Aug.*.................... 28;450 24,193 8; 958 3,665 7,899 3,672 3,828 1,515 1,916 69 328 429 1 Data exclude “holdings of dollars” of the International Monetary follows (in millions of dollars): Total 4-50; foreign banks, etc. 4-55; Fund. ’ other foreigners 4-23; payable in foreign currencies —28. 2 Excludes negotiable time certificates of deposit, which are included 5 Data on the two lines shown for this date differ because of changes in in “Other.” reporting coverage. Figures on the first line are comparable in coverage 1 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. * Includes revisions arising from changes in reporting coverage as Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1834 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 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 1965 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* AugJ’ Europe: Austria........................ 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Denmark........................... 14 13 13 13 13 13 13 13 12 12 12 12 12 12 France............................... 7 7 7 7 7 7 7 7 7 7 7 7 6 6 Germany.................. 1 I 1 I 1 1 1 I 1 1 1 1 1 1 Italy.................................. 1 1 2 2 2 2 2 2 2 2 2 9 9 9 Netherlands.................... 6 5 5 5 5 5 5 5 5 5 5 4 4 4 Norway............................. 49 51 51 51 51 51 51 51 51 51 51 51 51 51 Spain................................. 2 2 2 2 2 2 2 2 2 2 2 2 Sweden............................. 24 24 24 24 24 24 2U 24 24 24 24 24 24 24 Switzerland....................... 89 94 93 93 93 93 92 93 93 92 91 90 88 87 United Kingdom............... 553 330 298 321 333 348 350 353 353 355 359 364 368 375 Other Western Europe.... 51 50 50 50 50 49 49 49 50 50 50 50 50 51 Eastern Europe................. 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Total......................... 807 588 556 579 591 605 606 610 609 611 613 624 626 633 Canada................................. 676 695 693 690 698 692 692 695 695 722 719 716 717 717 Latin America: Latin American republics.. 6 7 7 7 7 8 8 8 8 7 7 6 6 6 Other Latin America......... 21 18 18 18 18 19 18 18 18 18 18 18 18 18 Total.......................... 27 23 23 24 24 25 24 24 24 24 24 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 53 53 54 54 Total.......................... 51 51 51 51 51 50 50 51 50 50 62 62 63 63 Africa.................... 16 15 15 15 15 15 15 15 15 23 28 28 28 22 Other countries..................... 1 1 1 1 1 1 1 1 1 1 I [ I 1 Total foreign countries......... 1,577 1,373 1,339 1,358 1,379 1,388 1,388 1,395 1,395 1,430 1,446 1,455 1,458 1,459 International and regional: International..................... 679 314 314 314 286 250 228 187 172 172 172 172 169 169 Latin American regional... 74 74 75 75 75 75 76 60 60 60 61 57 58 38 Other regional................. 1 1 1 1 Total......................... 752 389 389 390 361 325 304 247 232 233 234 230 227 207 Grand total............... 2,329 1,762 1,728 1,748 1,740 1,713 1,692 1,642 1,627 1,663 1,680 1,685 1,685 1,666 Note.—Data represent estimated official and private holdings of mar­ monthly reports of securities transactions (see Table 15 for total trans­ ketable U.S. Govt, securities with an original maturity of more than I 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 Italy 2 Sweden Total Austria Belgium Germany Italy Sw la i n tz d er­ B.I.S. 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 30 602 125 257 93 1966—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 May........... 784 349 144 180 25 434 25 151 125 133 June........... 809 349 144 180 25 460 25 151 125 159 July........... 934 349 144 180 25 585 25 276 125 159 Aug............ 1,007 347 144 178 25 660 50 326 125 159 Sept............ 1,257 546 344 178 25 710 50 ........3..7.6.... 125 159 ............... 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 millwere $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

OCTOBER 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1835 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 i , o a n n a d l Europe Canada A L m a e t r i i n c a Asia Africa co O un th tr e ie r s 1963............................................................................. 5,975 1 939 638 1,742 2 493 104 58 1964............................................................................. 7,469 1 1 217 725 2^212 3 137 120 58 19641........................................................................... 7,957 1 230 1 004 2,235 3 294 131 64 19652........................................................................... /7,632 * 1,201 593 2,288 3,343 139 67 [7,734 1,208 669 2,293 3,358 139 67 1966—-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 I 1,319 610 2,335 2,989 129 61 Nov.............................................................. 7,547 1 1 ,417 598 2,354 2,984 134 60 Dec. 2.............................................. J 7^19 1 1,366 620 2,489 3,135 147 62 Ir7,840 1 '1 ,365 608 r2,452 r3,206 147 62 1967—Jan.................................................................... r7 680 M ,281 597 '2,448 G 166 128 60 Feb................................................................... r7 674 1 rl ,236 626 r2,465 G 152 132 62 Mar.......................................................... r7 860 1 rl 251 614 r2,5O8 rj 278 148 62 Apr............................................................... r7 947 rl 266 625 r2 468 G 387 139 62 May................................................................. r8,101 1 rl ,297 594 Q.Slb r3 497 G33 r63 June................................................................. 8 252 1 1 277 592 2’545 3 640 127 71 JulyP................................................................. 8,233 1 252 602 2,575 3*612 117 74 Aug.P................................................................ 8,285 1 1,337 609 2,589 3,560 119 71 12a. Europe End of period Total A tr u ia s­ g B iu e m l­ m D a e r n k ­ l F a i n n d ­ France G Fe e d r o . m f R an ep y . , Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o ga r­ l Spain S d w en e­ 1963............................. 939 8 26 13 52 70 121 9 97 33 40 14 26 30 1964............................... 1,217 10 42 28 79 159 9 109 39 43 19 40 47 19641........................... 1,230 It 48 26 84 81 152 10 114 36 43 23 40 49 19652............................. /I,201 8 52 37 87 72 190 13 110 38 51 26 50 52 (1,208 8 52 37 87 72 190 13 110 38 51 26 50 52 1966—Aug..................... 1,304 10 58 53 90 71 217 15 106 42 49 38 62 65 Sept.................... L315 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................ I 1,366 16 67 62 91 73 215 16 108 40 76 41 67 74 VI,365 16 67 62 91 73 '227 16 108 40 76 41 67 74 1967—jan...................... rl 281 19 69 42 90 60 '191 15 84 36 64 41 75 68 Feb..................... '1,236 20 76 42 91 64 '164 15 78 45 60 38 71 77 Mar.................... '1,251 19 73 44 92 66 '170 14 70 44 62 37 69 78 Apr..................... '1,266 17 73 35 97 72 '193 15 64 35 60 36 68 77 May................... '1,297 18 67 34 100 65 '192 17 73 34 60 34 71 72 June.................... 1,277 17 65 40 101 69 188 14 68 29 44 28 72 74 JulyP.................. 1,252 13 61 37 97 73 198 15 68 31 50 27 68 61 Aug.p.................. 1,337 16 65 37 93 71 184 15 61 30 51 26 61 67 12a. Europe—Continued 12b. Latin America End of period S l w e an r i ­ t d z­ T k u ey r­ U K d n i o i n m t g ed ­ Y sl u av g i o a ­ W E O u e r t s o h te p e r r e n U.S.S.R. E E O u as r th o te e p r r e n Total A t r i g n e a n­ Brazil Chile l C o b m i o a ­ ­ Cuba M ic e o x­ 1963............................... 70 48 237 7 23 ♦ 16 1,742 188 163 187 208 18 465 1964.............................. 97 36 319 15 20 ♦ 20 2,212 216 145 188 319 17 630 19641............................. 111 37 310 16 20 * 20 2,235 203 126 176 338 17 644 19652............................. 173 42 210 28 28 6 27 2,288 232 94 174 270 16 669 I 73 42 216 28 28 b 27 2,293 232 94 174 270 16 674 1966—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 1 88 52 '191 19 37 2 16 r2,452 r187 r112 ' 158 r3O5 16 '757 1967—Jan...................... 80 50 '217 23 39 2 17 '2,448 '179 '117 '151 '293 16 '785 Feb..................... 82 27 '206 22 39 2 17 '2,465 '169 ' '120 '149 '285 16 '817 Mar.................... 81 37 '213 22 39 I 20 '2 508 '180 '125 '146 '274 16 '853 Apr..................... 81 47 '210 23 42 1 20 '2 468 '181 '121 '150 '249 16 '837 May.................. 84 37 '263 24 32 * 21 '2’516 '175 123 '153 232 16 '877 June.................... 86 38 268 24 31 1 22 2,545 185 116 155 223 16 861 JulyP.................. 102 39 232 25 33 * 22 2,575 186 115 161 239 16 913 Aug.p. ............... 118 47 320 22 29 * 24 2,589 185 117 160 243 16 943 For notes see the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1836 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 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 12c. Asia Baha­ Neth. E pe n r d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ r O e L li p t . c h A u s e b . r ­ m B & e a r s ­ A S n u t & i r l i l ­ es A O L m i a t c h t e a i e n r r ­ Total C M la h a n i i n d n a ­ H K o o n n g g India I n n e d si o a ­ Israel 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............... 170 45 220 250 53 14 23 3; 343 1 29 17 2 86 159 170 45 220 250 53 14 23 3,358 1 29 17 2 86 1966—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....... 71 204 37 224 246 55 17 16 2,989 l 30 19 5 96 Nov...... 76 197 43 222 263 56 17 18 2,984 1 31 13 5 98 /84 211 45 226 272 61 18 17 3,135 1 31 16 6 98 1'86 '212 45 '220 '261 61 18 '16 '3,206 1 31 16 6 98 1967—Jan....... '78 '213 44 '219 '259 63 17 '15 '3,166 1 31 12 6 102 Feb....... '77 '225 39 '213 '262 62 17 '16 '3,152 1 31 12 6 106 Mar.. . . '79 '232 56 '212 '247 56 17 '15 '3,278 1 33 13 5 96 Apr....... 75 238 59 '200 '248 61 17 '16 '3,387 1 31 14 5 89 May.. . . 75 262 60 '217 '241 51 18 16 '3,497 I 35 14 5 94 June.. . . 69 285 64 210 248 78 17 18 3,640 I 36 17 5 88 July”. .. 64 255 63 212 247 65 17 20 3,612 1 37 13 5 78 Aug.5*. . 62 244 60 214 249 59 18 19 3,560 1 34 11 5 72 12c. Asia'—'Continued 12d. Africa 12e Other countries End of period Japan Korea P p h i i n l e ip s ­ T w a a i n ­ T la h n a d i­ O A th si e a r Total C s ( h K o a n i s g n a o ­ ) Mo co roc­ S A o fr u i t c h a ( U E . g A yp R t . ) A O f t r h ic e a r Total A t l r i u a a s ­ ­ ot A h l e l r 1963........................ 2,171 25 113 8 52 71 104 1 1 15 28 59 58 48 9 1964........................ 2,'653 21 202 9 64 88 120 1 2 19 42 56 58 48 10 19641...................... 2,810 21 203 9 65 82 131 1 2 20 42 67 64 48 16 ...................... / 1 2 2 , , ’ 7 7 6 51 8 2 2 2 2 2 2 3 3 1 0 1 1 5 5 8 82 2 1 1 0 0 8 7 1 1 3 3 9 9 1 1 2 2 3 3 4 4 4 4 3 3 6 60 0 6 6 7 7 5 5 2 2 1 1 5 5 1966—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 I 2 34 38 49 59 50 9 Oct......... 2,400 24 208 16 67 123 129 1 3 37 37 51 61 51 11 Nov.............. 2,389 26 211 15 72 122 1 34 * 2 45 30 57 60 50 10 Dec.2....... / ( '2 2 , , 5 5 7 0 2 2 3 3 1 1 2 2 2 2 0 0 1 1 4 5 8 8 1 1 1 13 3 5 4 1 1 4 4 7 7 1 1 2 2 5 5 0 0 2 2 5 5 6 69 9 6 62 2 5 5 2 2 1 1 0 0 1967—Jan............... '2,491 33 233 23 83 151 128 * 3 38 18 68 60 51 9 Feb............... '2,486 34 228 26 86 137 132 4 43 15 71 62 53 8 Mar.............. '2,611 38 232 30 89 131 148 1 2 42 30 73 62 53 9 Apr............... '2,716 52 245 33 84 116 139 * 2 37 26 74 62 53 9 May............. '2'828 44 '250 30 83 114 '133 * 5 34 31 '63 '63 52 '11 June............. 2,‘939 49 270 27 87 122 127 1 2 30 27 66 71 60 12 July”........ 2^909 55 289 29 81 116 117 2 31 26 58 74 62 12 Aug.3*........... 2,861 48 297 23 88 119 119 * 2 33 25 59 71 59 13 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; 2 Data on the two lines shown for this date differ because of changes in and foreign currency balances held abroad by banks and bankers and reporting coverage. Figures on the first line are comparable in coverage their customers in the United States. Excludes foreign currencies held with those shown for the preceding date; figures on the second line are by U.S. monetary authorities. comparable with those shown for the following date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1837 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 Loans to— Accept­ Foreign End of period Total Collec­ ances govi. se­ Total Total O i t n i f o s f t i n c it s i u a 1 l ­ Banks Others s t o t i i a o n u n g n t d ­ s ­ f e m o o i r g f a n a f d e o c e r c r s ­ t, Other Total D w e e i i g p th n o e s f r i o t s r s ­ c a n u c n o a r d i n m t i c e l f e . i s ­ , Other 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 >00 552 659 400 182 77 19642.......................... 7,957 7,333 2,773 221 1 ,403 1,150 1,135 2,621 803 624 336 187 102 19653.......................... (7,632 7,158 2,967 271 1,566 1,130 1,268 2,501 422 474 325 54 95 17,734 7,243 2,970 271 1,567 1,132 1,272 2,508 492 492 329 68 96 1966—Aug.................. 7,411 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 I >19 1,068 1,374 2,267 409 427 241 61 125 Oct.,................ 7; 445 7,011 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............. / 7,819 7 >99 3,138 256 1 >39 1>43 1>67 2,450 443 420 240 70 110 >7,840 r7,420 3,138 256 1,739 1,143 rl ,288 2,540 452 r420 '241 70 110 1967—Jan................... r7,680 ’•7,311 2,995 258 1,592 1,145 rl,288 2,575 453 r369 ’213 73 83 Feb................... *■7 >74 r7'264 2,968 239 1'579 1,150 rl ,292 2,566 440 ’410 r248 70 92 Mar.......... r7,86O 'I >38 3’022 252 1 ,611 1 '158 n>56 2,628 432 ’423 ’275 50 97 Apr.................. ’•7’947 '’7,526 2'968 271 1 ,536 1’161 'I >52 2>39 467 r42l r256 77 88 May................. ’•8,101 ’7^687 2 >27 246 1 >57 1,124 U >85 2,'914 462 ’413 ’263 62 89 June................ 8,252 7,852 2'917 253 I >53 1,111 1 >30 3,028 478 400 262 54 83 July?’................ 8,233 7,818 2'876 260 1 '484 >133 1 >30 3 >39 473 415 281 57 78 Aug.?'............... 8(285 7 ,'775 2(925 286 1 >98 1>42 1 >41 2,944 465 509 368 69 73 1 Includes central banks. of Dec. 31, 1964; and because of revision of preliminary data. 2 Differs from data in line above because of the exclusion, as of Dec. 3 Data on the two lines shown for this date differ because of changes in 31, 1964, of $58 million of short-term U.S. Govt, claims previously in­ reporting coverage. Figures on the first line are comparable in coverage cluded ; because of the addition of $546 million of short-term claims with those shown for the preceding date; figures on the second line are arising from the inclusion of claims previously held, but first reported as comparable with those shown for the following date. 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 Inter­ Total F c o t o r r i u e e i n s g ­ n n re a g a ti i n o o d n n a al l Total P L a o y a a n b s le in do A l l l l a rs P fo a c r y u i e a n r i b g ­ l n e U K d n o i i n m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r c t O r o i t e u h s n e r ­ 1 other rencies 1963................ 69 28 42 3,030 2,811 217 2 38 1,063 290 1,015 249 194 181 1964 2............. ( 1 3 3 0 1 6 0 2 2 0 0 0 4 1 1 0 0 6 6 4 3, , 9 2 7 8 1 5 3 3 , , 9 7 9 7 5 7 2 1 8 95 8 ♦ 1 7 8 7 7 1 1, > 6 1 3 1 2 2 3 7 2 3 7 1 1, > 2 6 75 2 4 3 3 85 0 2 2 5 3 5 8 2 2 7 2 8 7 1965................ 513 203 311 4,517 4,211 297 9 86 1,518 346 1,296 445 391 436 1966—Aug...... 1 ,096 599 497 4,368 4,095 265 8 78 1,328 322 1,296 393 428 523 Sept.... 1,112 616 496 4,287 4,004 266 16 75 1,270 320 1,306 374 430 510 Oct....... 1,173 671 502 4,247 3,969 262 16 76 1 ,225 321 1,295 355 432 543 Nov.... 1,191 681 510 4,296 4,026 254 17 72 1,222 314 1,373 339 421 555 Dec....... 1,492 986 506 4,180 3,915 247 18 70 1,155 314 1,346 326 408 562 1967—Jan....... 1,561 1,053 508 4,073 3,817 240 16 72 1,129 287 1,318 312 391 565 Feb....... 1,661 1,117 545 4,026 3,783 227 16 72 1,105 265 1,314 304 391 575 Mar.... 1,868 1,293 576 4,027 3,779 232 16 68 1,079 310 1,312 287 377 593 Apr....... 1,991 1,415 576 4,020 3,771 233 16 69 1,063 319 1,309 278 380 602 May.... 2,043 1,451 592 3,995 3,746 232 17 65 1,036 317 1,309 263 384 621 June.... 2,496 1,896 600 3,836 3,582 237 17 40 943 321 1 ,347 195 379 610 July”. .. 2,462 1,857 604 3,827 3,578 232 17 48 967 343 1 ,393 185 390 500 Aug.P.. 2,522 1,883 639 3,890 3,631 242 17 51 956 340 1,450 176 394 522 t Includes Africa. with those shown for the preceding date; figures on the second line are 2 Data on the two fines 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

1838 [NTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 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 c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N ha s e a s t e l e p s s u o r r ­ ch P a u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ regional Total 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 2,692 -914 960 731 229 1966—Aug................. -21 -44 23 -1 24 379 381 -2 90 21 76 65 11 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......-..2..1.........-21 527 44 112 265 -153 71 63 8 Feb.................. -50 -57 7 5 2 557 23 98 168 -70 66 55 11 Mar................. -15 -14 1 -1 775 718 57 215 265 -51 75 65 11 Apr................. 35 35 35 700 563 137 154 259 -105 67 53 15 May................ 17 16 16 902 757 145 127 167 -39 68 65 3 June.......... .. 5 -3 9 -3 12 926 821 105 248 309 -61 71 95 -24 July”............... -3 3 3 929 709 220 145 282 -137 58 65 -7 Aug?'.............. -19 -20 I -6 7 900 820 80 145 226 -81 67 107 -40 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 i d ­ t­ U k d n i o n i m t g e ­ d E O u t r h o e p r e E T u o r t o a p l e Canada A L i m a c t a i e n r­ Asia Africa O c t o r t i u h 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 (9 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—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 1 -32 6 ♦ -24 33 6 2 ♦ ♦ 4 1967—Jan.. . 44 -6 50 I 19 -19 -4 -2 33 3 9 -I * 2 Feb... 23 -28 50 7 4 -16 16 11 4 4 1 3 Mar. . 57 -8 65 10 5 12 18 45 ♦ 9 8 * * -5 Apr... 137 66 71 8 34 -3 13 51 8 5 1 72 May.. 145 5 141 9 20 67 29 126 10 -4 3 10 -1 June.. 105 64 41 6 21 8 3 37 63 5 -2 * 1 July*. 220 87 133 59 61 9 27 157 28 3 6 24 1 2 Aug.p. 80 67 13 II 24 6 -4 37 26 ♦ 9 ♦ I 8 l 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

OCTOBER 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1839 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 I a r n n e t d ­ i, T e f o i o g t r n a ­ l r E o u p ­ e C a a d n a ­ A L m ati e n r ­ Asia r A ic f a ­ O co th u e n r ­ E pe n r d i o o d f Deposits Assets in custody gional coun­ ica tries U.S Govt. Earmarked tries securities1 gold 1963.................. -1,044 -96 -949 -49 -614 -26 -252 (]) 2-8 (963.............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.................. -685 -171 -514 214 -726 — 9 -7 16 -2 1966—Sept.,. 159 7,092 12,904 1966—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 I Dec.,. 174 7,036 12,946 Nov........ -54 6 -60 -50 -4 -8 * 2 Dec...... 32 2 30 20 17 -12 -10 * 15 1967—Jan.... 148 7,141 12,961 Feb.. . 145 7^34 12,984 1967—Jan......... -145 -52 -93 13 -80 2 -8 1 -21 Mar... 131 7,547 12,972 Feb...... -59 6 -66 -8 -62 6 -3 1 Apr.. . 123 7,912 12'975 Mar....... -40 -87 47 25 -50 29 27 6 11 May. . 193 7,799 12,972 Apr........ -90 -94 4 5 1 13 -5 -12 1 June.. 147 7,667 12,977 May....... -37 -I -36 11 -21 -23 -6 1 2 July... 117 7,665 12,976 June....... -85 _9 -76 22 -45 5 -48 -10 Aug... 144 7,535 12,993 Julyf.. . . -144 -14 -130 27 -84 3 -59 1 -18 Sept... 117 7,558 12,992 Aug.”,.. . -121 -43 -78 -23 -23 1 -34 -1 2 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) were revised to tistics related to the U.S. balance of payments; see Table exclude the holdings of dollars by the IMF derived from 1. A number of changes were introduced in the May 1967 payments of the U.S. subscription and from the exchange issue of the Bulletin to increase the usefulness of this transactions and other operations of the IMF. (Liabilities section. representing the “gold investment” of the IMF continue At that time the table showing the U.S. gold stock and to be included.) This change in the treatment of the holdings of convertible foreign currencies (now Table 4) “holdings of dollars” of the IMF is related to the revision was revised to include in the reserve assets of the United of the table on U.S. monetary reserve assets (Table 4) to States its reserve position in the International Monetary include the U.S. reserve position in the IMF. The “hold­ Fund. In accordance with IMF policies, the United ings of dollars” of the IMF do not represent liabilities to States has the right to draw foreign currencies equivalent foreigners in the same sense as do other reported liabili­ to this amount virtually automatically if needed. (Under ties to foreigners. They are more accurately viewed as appropriate conditions the United States could draw contingent liabilities, since they represent essentially the additional amounts equal to the U.S. quota of $5,160 amount of dollars available for drawings from the IMF million.) This presentation corresponds to the treatment by other member countries. Changes in these holdings of U.S. monetary reserves in the U.S. balance of pay­ (arising from U.S. drawings and repayments of foreign ments. currencies, from drawings and repayments of dollars Table 5 shows the factors that affect the U.S. position by other countries, and from other dollar operations of in the IMF. the IMF) give rise to equal and opposite changes in the Table 6 brings together the various statistical compo­ U.S. gold tranche position in the IMF. In the absence of nents of the liabilities that enter into the U.S. balance of U.S. lending to the IMF, the gold tranche position is payments calculated on the liquidity basis. The inclu­ equal to the U.S. reserve position in the IMF. Since the sion of the U.S. reserve position in the IMF in Table 4 reserve position is included in U.S. reserve assets, it is requires that the “holdings of dollars” of the IMF be necessary, in order to avoid double-counting, to exclude excluded from the data on liabilities to foreigners, in the “holdings of dollars” of the IMF from U.S. liabilities order to avoid double counting. For further explanation to foreigners. The revised presentation conforms to the of this change in the liabilities statistics, see next to last treatment of these items in the U.S. balance of payments paragraph. and the international investment position of the United Table 7 (formerly Table 1), presenting an area break­ States. down of U.S. liquid liabilities to official institutions of Table 10 shows estimated foreign holdings of market­ foreign countries, was revised to include holdings of able U.S. Govt, bonds and notes. convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1840 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 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 1966 1967 1966 1967 Mar. June Sept. Dec. Mar. Mar. June Sept. Dec. Mar. Europe: Austria................................................. 2 3 3 2 2 8 7 7 8 8 Belgium................................................ 30 32 30 32 34 46 45 42 53 63 Denmark.............................................. 1 2 2 3 5 8 8 10 14 11 Finland................................................ 1 1 1 1 1 6 6 4 4 4 France.................................................. 45 48 57 62 61 97 94 (02 1 10 122 Germany, Fed. Rep. of....................... 60 70 81 78 81 118 98 120 127 122 Greece.................................................. 3 3 2 2 11 18 15 15 17 Italy..................................................... 23 27 52 54 62 118 111 107 101 98 Netherlands......................................... 54 65 67 68 80 48 42 42 48 45 Norway................................................ 2 2 2 2 2 8 7 9 8 7 Portugal............................................... 7 6 6 9 7 9 8 6 7 6 Spain.................................................... 21 23 25 27 30 56 63 51 61 76 Sweden................................................. 12 12 14 17 19 28 30 27 36 18 Switzerland.......................................... 45 61 58 58 47 20 20 22 18 26 Turkey.................................................. 4 4 4 2 2 10 6 6 6 7 United Kingdom......................... 139 141 201 208 236 440 492 599 -•579 646 Yugoslavia........................................... 1 1 2 1 1 2 2 4 4 4 Other Western Europe........................ 4 2 3 4 5 9 9 9 11 12 Eastern Europe.................................... 1 1 1 3 6 3 2 3 Total............................................. 454 502 611 631 678 1 ,047 1,070 1,185 0,212 1 ,296 Canada..................................................... 120 117 138 146 173 566 550 509 489 482 Latin America: Argentina......................................... 6 5 6 6 3 34 35 37 39 39 Brazil................................................... 11 11 9 10 II 80 78 73 65 61 Chile......................................... 5 4 3 4 5 31 31 31 32 30 Colombia............................................ 8 7 5 7 5 21 22 21 25 24 Cuba.................................................... * * 3 3 3 3 2 Mexico............................................... . 9 10 10 11 16 74 79 78 95 96 Panama................................................ 9 4 9 10 4 II 13 12 12 11 Peru...................................................... 7 5 6 7 6 30 28 28 31 31 Uruguay............................................... 2 I 1 1 1 7 5 6 7 7 Venezuela............................................. 27 26 25 36 38 52 49 49 62 56 Other L.A. republics........................... 11 12 18 20 15 56 55 59 ’’60 62 Bahamas and Bermuda........................ 2 1 2 3 7 12 8 11 18 12 Neth. Antilles & Surinam................... 7 9 7 7 6 4 3 4 4 5 Other Latin America........................... 1 2 2 1 1 9 9 11 10 9 Total........................................... 105 98 104 124 118 424 418 422 M63 445 Asia: Hong Kong.......................................... 2 2 2 3 4 5 7 6 7 7 India................................................... 25 20 17 17 13 35 29 32 34 33 Indonesia............................................. 10 10 2 2 2 3 3 3 7 5 Israel.................................................... 1 2 2 2 * 5 4 5 5 5 Japan.................................................. 27 27 23 27 30 172 155 146 164 163 Korea................................................... 1 2 4 3 2 6 4 5 5 7 Philippines.......................................... 7 7 7 7 6 16 18 17 17 17 Taiwan................................................. 5 6 7 4 5 6 4 5 7 12 Thailand.............................................. 1 1 1 4 4 8 9 11 If 10 Other Asia........................................... 34 38 35 31 41 76 76 69 75 88 Total........................................ 112 116 101 100 107 331 309 299 331 346 Africa: Congo (Kinshasa)................................ 1 1 1 1 2 1 2 2 2 South Africa........................................ 11 11 10 17 5 18 18 17 24 16 U.A.R. (Egypt).................................... 1 2 2 1 2 11 17 11 11 9 Other Africa......................................... 9 9 7 6 7 27 30 30 32 35 Total..................................... 22 22 19 24 15 58 66 59 69 62 Other countries: Australia.......................................... 31 35 51 58 52 40 45 57 58 54 All other.............................................. 4 5 4 6 6 7 10 7 8 8 Total............................................. 35 40 55 64 58 47 55 63 66 61 International and regional...................... * * * * ♦ * I I * * Grand total.................................. 849 894 1,028 1,089 1,148 2,473 2,469 2,539 2,631 2,692 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

OCTOBER 1967 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1841 20. SHORTTERM 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 Payable Total P d a o y l in l a a b r l s e for i e n i gn 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 1963—Mar............................................................................. 614 470 144 2,113 1,712 201 200 Mar.1........................................................................... 616 472 144 2,162 1 J58 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 June 3......................................................................... 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 [965—Mar............................................................................... 695 531 165 2,612 2,147 189 277 June.............................................................................. 740 568 172 2,411 1 366 198 248 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 1 311 166 222 1966—Mar............................................................................... 849 614 235 2,473 2,033 211 229 June............................................................................ 894 657 237 2,469 2363 191 215 Sept........................................................................... 1,028 785 243 2,539 2’ 146 166 227 Dec............................................................................ 1 '089 827 262 2’631 ^2 328 167 236 1967—Mar............................................................................... 1,148 864 285 2,692 2,249 192 252 1 Includes data from firms reporting for the first time. of claims; for previous series the exemption level was $100,000. 2 Includes data from firms reporting for the first time and claims pre­ 4 Data differ from that shown for Dec. in line above because of changes viously held but not reported. 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 Total End of period 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 A O L m t a e h t r i e n i r c a Japan O A t s h i e a r Africa o A th H e r 1964—Mar.................. 143 761 30 85 58 64 74 158 89 94 96 13 June 1.................... 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,2.............. 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 1 381 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.2.............. 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...................... 188 1,207 27 167 251 205 61 217 90 90 86 14 Sept...................... 249 1,235 23 174 267 202 64 207 102 91 90 14 Dec....................... r329 1 ,256 27 198 272 203 56 212 95 93 87 13 1967—Mar....................... 454 1,324 31 232 283 203 58 210 108 98 84 17 1 As a result of an increase in the exemption level from $100,000 to 2 Data differ from that shown for Dec. in line above because of changes $500,000, data exclude $3 million of liabilities and $3 million of claims in reporting coverage. held by firms previously reporting but now exempt. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1842 GOLD RESERVES OCTOBER 1967 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E p n er d i o o d f m to a t t a e l d M ta o r n y e ­ U St n a i t t e e s d r m es a t t e o d f A i f s g t h 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 n.a. 104 147 293 1,170 287 885 45 1961 41,120 2,077 16,947 22,095 36 190 162 303 1,248 285 946 48 1962. 41,475 2,194 16,057 23,225 36 61 190 454 1 ,365 225 42 708 43 1963. 42,305 2.312 15,596 24,395 36 78 208 536 1 ,371 150 42 817 43 1964. 43,015 2,179 15,471 25,365 36 71 226 600 1 ,451 92 84 1,026 43 1965....................... 243,225 31,869 13,806 27,280 35 66 223 700 1,558 63 84 1,151 44 1966--Aug.............. 2,645 13,319 35 70 226 700 1 ,529 45 84 997 45 Sept.............. 43,230 2,645 13,356 27,230 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............... 43,180 2,652 13,235 27,295 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 45 84 1,070 45 Mar.............. 43,115 2,652 13,184 27,280 35 84 228 701 1,524 45 84 1 ,084 46 Apr......... 2,657 13,234 35 84 228 701 1 ,525 45 84 1 ,042 46 May............. 2,658 13,214 35 84 228 701 1 ,524 45 84 1 ,053 47 June............. J'42,975 2,669 13,169 ^27,135 35 84 229 701 1 ,522 45 84 1 ,066 47 July............... 2,674 13,136 35 84 229 701 1 ,520 84 I ,074 47 Aug.............. 2,678 13,075 ............3.5 229 701 1 ,516 84 1 ,086 46 Ger- E pe n r d i o o d f lo C m o b ­ ia D m e ar n k ­ l F a i n n d ­ France m F a e n d y . , Greece India I n n e d si o a ­ Iran Iraq Israel Italy Japan Rep of 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 1963. 62 92 61 3.175 3,843 77 247 35 142 98 60 2,343 289 1964, 58 92 85 3,729 4,248 77 247 141 112 56 2,107 304 1965....................... 35 97 84 4,706 4,410 78 281 ..........1.4.6 110 56 2,404 328 1966--Aug.............. 25 108 55 5,209 4,297 112 243 131 106 46 2,358 Sept.............. 25 108 55 5,241 4,295 116 243 131 106 46 2,356 329 Oct................ 25 108 54 5,236 4,289 116 243 131 106 46 2,351 Nov.............. 26 108 51 5,237 4,290 119 243 131 106 46 2,382 Dec.............. 26 108 45 5,238 4,292 120 243 130 106 46 2,414 329 1967--Jan............... 27 108 45 5,236 4,290 120 243 130 106 46 2,412 Feb............... 28 108 45 5,235 4,289 120 243 130 106 46 2,411 Mar.............. 28 108 48 5,240 4,294 123 243 145 106 46 2,416 330 Apr............... 28 108 48 5,241 4,296 127 243 145 106 46 2,417 May............. 29 108 48 5,241 4,294 132 243 145 106 2,416 June............. 29 108 47 5,235 4,292 149 243 145 94 2,412 330 July............... 29 108 47 5,233 4,285 150 243 145 94 2,406 Aug.............. 108 47 5,234 4,283 149 243 145 94 46 2,400 E pe n r d i o 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 p h in il e i s p­ Po g r a t l u­ A S r a a u b d i i a 1960. n.a. 119 137 29 1,451 30 52 42 15 552 18 1961 . 43 140 112 29 1,581 20 30 53 47 27 443 65 1962. 49 172 3 95 29 1,581 20 30 53 47 41 471 78 1963. 48 172 7 139 29 1,601 20 31 53 57 28 497 78 1964. 48 183 17 169 34 1 ,688 20 31 53 67 23 523 78 1965. 52 182 68 158 21 1,756 20 31 53 67 38 576 73 1966--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................ 71 193 68 116 21 1,730 20 18 53 65 45 646 69 Feb............... 71 193 68 114 21 1,731 20 18 53 65 47 647 69 Mar.............. 73 193 68 112 21 1 ,731 20 18 53 55 47 650 69 Apr............... 73 193 68 120 21 1,731 20 18 53 55 49 651 69 May............. 73 68 149 21 1,731 20 18 53 45 51 654 69 June............. 89 68 160 21 1,731 20 18 53 30 53 661 69 July............... 89 68 159 21 1,731 20 18 53 25 54 668 69 Aug............... 89 68 ............. 21 1 ,731 20 18 53 56 69 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 GOLD RESERVES AND PRODUCTION 1843 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t . ) U K d n i o i n m t g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l i. e ­ ments 4 1960............................ 178 178 170 2,185 41 104 134 174 2,800 180 401 4 -19 1961............................ 298 316 180 2,560 43 104 139 174 2,268 180 401 6 115 1962............................ 499 446 181 2,667 43 104 140 174 2,582 180 401 4 -50 1963 ............................ 630 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 1964............................ 574 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 1965 ............................ 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 1966—Aug.................. 672 785 203 2,681 59 92 105 139 155 401 20 -388 Sept................. 664 785 203 2,681 59 92 100 139 1,940 155 401 20 -299 Oct.................. 655 785 203 2,680 62 92 100 121 155 401 21 -277 Nov.................. 637 785 203 2,679 62 92 100 93 (55 401 21 -275 Dec.............. 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 1967—Jan................... 611 784 203 2,679 66 92 102 93 146 401 21 -274 Feb.................. 581 784 203 2,678 66 92 97 93 146 401 21 -289 Mar.................. 540 784 203 2,679 74 92 97 93 1,677 146 401 21 -15 Apr.................. 519 784 203 2,643 74 92 97 93 146 401 22 37 May................. 482 784 203 2,619 74 92 97 93 146 401 22 -87 June................. 468 784 203 2,831 81 92 96 93 1,708 146 40! 22 -266 July.................. 493 784 203 2,844 92 96 93 146 401 21 -271 Aug.................. 487 203 2,843 92 96 93 146 401 -375 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 produc­ tion 1 A So fr u ic th a d R e h s o ia ­ Ghana C s ( h K o a n i s n g a o ­ ) U St n a i t t e e s d C ad an a ­ M ic e o x­ r N a i g c u a a ­ Co b l i o a m­ India P p h i i n l e ip s ­ t A ra u l s ia ­ ot A h l e l r 1960................................. 1,175.0 748.4 19,6 30.8 H.l 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 7.1 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 11.4 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 3.2 58.6 125.6 7.6 6.9 11 .2 4.6 15.3 30.7 61.5 1966................................ 1;445.0 1,080.8 19.3 24.0 5.6 63.1 114.6 7.5 7.0 9.8 4.2 15.6 32.0 61.5 1966—July...................... 89,4 2.1 9.3 .5 .8 .4 2.6 90.1 2.0 9.2 .8 .8 .4 2.9 Sept...................... 91.7 9.2 .6 .8 .3 24.0 2.4 Oct................... 89.7 9.1 .5 .9 .4 2.5 Nov.................... 90.8 8.7 .6 .8 .3 2.4 Dec..................... 87.7 9.6 .4 .7 .3 24.0 2.7 1967—Jan....................... 89,5 8.7 .6 ,9 Feb....................... 87.8 8.9 .6 .8 Mar............. 89.5 9.1 .6 .5 Apr ..................... 89,1 8.9 .8 May..................... 91,2 8.9 June...................... 89.1 9.1 July...................... 88.9 8.4 1 Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1844 MONEY RATES OCTOBER 1967 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Sept. 30, 1966 Rate Country 1966 1967 Se a p s t o . 3 f 0, 1967 Per Month cent effective Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Argentina........................... 6.0 Dec. 1957 6.0 Austria.....................,.,.. 4.5 June 1963 4.25 4.25 Belgium.................. 5.25 June 1966 5.0 4.75 4.5 4.25 4.25 Brazil................................... 12.0 Jan. 1965 12.0 Burma......... 4.0 Feb. 1962 4.0 Canada 1............................. 5.25 Mar. 1966 5.0 4.5 5.0 5.0 Ceylon................................. 5.0 May 1965 5.0 Chile 2................................. 15.84 July 1966 15.84 Colombia............................ 8.0 May 1963 8.0 Costa Rica............... 3.0 Apr. 1939 3.0 Denmark............................. 6.5 June 1964 6.5 Ecuador............................... 5.0 Nov. 1956 5.0 El Salvador........................ 4.0 Aug. 1964 4.0 Finland................................ 7.0 Apr. 1962 7.0 France...................... 3,5 Apr. 1965 3.5 Germany, Fed. Rep. of....... 5.0 May 1966 4.5 4.0 3.5 3.0 3.0 Ghana................... 7.0 Jan, 1966 6.0 6.0 Greece. ............................. 5.5 Jan. 1963 4.5 4.5 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 9.0 Iran...................................... 5.0 Aug. 1966 5.0 Ireland................................. 7,00 Sept. 1966 6.81 6.87 ......... 6.50 6.25 5.88 5.56 5.44 5.50 5.56 5.50 ......... 5,50 Israel.................................... 6.0 Feb. 1955 6.0 Italy..................................... 3.5 June 1958 3.5 Jamaica................................ 5.5 July 1966 5.0 5.0 Japan................................... 5.48 June 1965 5.84 5.84 Korea........... 28.0 Dec. 1965 28.0 Mexico................................. 4.5 June 1942 4.5 Netherlands......................... 5.0 May 1966 4.5 4.5 New Zealand....................... 7.0 Ma? 1961 7.0 Nicaragua............................ 6.0 Apr. 1954 6.0 Norway............. 3.5 Feb. 1955 3.5 Pakistan............................... 5.0 5.0 Peru.................... 9.5 Nov. 1959 9.5 Philippine Republic............ 4.75 Jan. 1966 6.0 6.0 Portugal.............................. 2.5 Sept. 1965 2.5 South Africa........................ 6.0 July 1966 6.0 Spain.................................. 4.0 June 1961 4.0 Sweden......................... 6.0 5.5 5.0 5.0 Switzerland.......................... 3.5 July 1966 3.6 3.0 Taiwan 4............................. 14.04 July 1963 i3.3 13.3 Thailand.............................. 5.0 Oct. 1959 5.0 Tunisia............................... 5.0 Sept. 1966 5.0 Turkey,.................. 7.5 May 1961 7.5 United Arab Rep. (Egypt). . 5.0 May 1962 5.0 United Kingdom................. 7.0 July 1966 6.5 6.0 5.5 5.5 Venezuela.......................... 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at for rediscounts in excess of an individual bank’s quota; the average rate charged by banks in the previous half year. Old redis­ Costa Rica—5 per cent for paper related to commercial transactions counts remain subject to old rates provided their amount is reduced by (rate shown is for agricultural and industrial paper); one-eighth each month beginning with May I, 1959, but the rates are Ecuador—6 per cent for bank acceptances for commercial purposes; raised by 1,5 per cent for each month in which the reduction does not Indonesia—various rates depending on type of paper, collateral, com­ occur. modity involved, etc.; 3 Rate shown is for advances only. Japan—-penalty rates (exceeding the basic rate shown) for borrowings 4 Rate shown is for call loans. from the central bank in excess of an individual bank’s quota; Peru—-8 per cent for agricultural, industrial, and mining paper; Note.—Rates shown are mainly those at which the central bank either Philippines—-3 per cent for financing the production, importation, and dis­ discounts or makes advances against eligible commercial paper and/or tribution of rice and corn and 4.75 per cent for credits to enterprises en­ govt, securities for commercial banks or brokers. For countries with gaged in export activities. Preferential rates are also granted on credits to more than one rate applicable to such discounts or advances, the rate rural banks; shown is the one at which it is understood the central bank transacts Spain—4.6 per cent for financial paper rediscounted for banks (rate shown the largest proportion of its credit operations. Other rates for some is for commercial bills); and of these countries follow: Venezuela—4 per cent for rediscounts of certain agricultural paper and Argentina—'3 and 5 per cent for certain rural and industrial paper, de­ for advances against govt, bonds or gold and 5 per cent on advances pending on type of transaction; against securities of Venezuelan companies. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1967 MONEY RATES; ARBITRAGE 1845 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l s n ls u t , h ry s 1 D m a o d y a n - y e t y o 2 ­ 3 B a a m a c n n c o c e k n e p e s t t r h , ­ s s ’ T 3 r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e t o y ­ a B d ll e o a p n w o o k n a e s n r it s c s * e m Da o d y n a - y e t o y ­ 2 T 6 r d b e 0 a i a y - l s l 9 s s u 0 , < r y m Da o d y n a - e y t y o s ­ 3 T m r b e i a o l s l n s u t , h r y s D m a d o y a n - y e t o y ­ d P is r r c i a v o t a e u t n e t 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—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 5.02 3.75 4.00 4.64 4.57 4.25 Apr............ 4.00 3.90 5.69 5.39 4.98 4.00 5.03 3.75 4.19 4.47 4.25 4.25 May........... 4.14 4.12 5.47 5,23 4.55 3.56 4.79 3.00 3.00 4.56 4.36 4.25 June 4.34 4,27 5.44 5,27 4.54 3.50 4.29 2.75 3.63 4.56 4.38 4.25 July.......... 4.27 3.68 5.47 5.34 4.51 3.50 4.76 2.75 2.38 4.54 4.38 4.13 Aug............ 4.33 4.16 5.53 5.32 4.56 3.50 • • *......... 2.75 2.56 4.49 3.83 4.00 1 Based on average yield of weekly tenders during month, 5 Based on average of lowest and highest quotation during month 2 Based on weekly averages of daily closing rates. 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 Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Date q K ( u U a i b o n U d a n t g j s . a i . S d t i t s e i o . t ) d o o m n U St n a i t t e e s d L S ( o f p n a o r v d e f o o a d n r ) P d f ( ( r o p i — e + s o r c m w u ) o ) n i a u o o u d r n n r m d t i L n ( o c f N n e a o n v d e f t o o t i v r n e ) qu A o tn t s e d C ana q d u A a o U d t j . a . S ti . t o o n U St n a i t t e e s d C S ( a f p n a o r v a e f d a o d a r ) C d f ( ( d o a i — + s o n r c w l a ) > l o d a a o u o r i r n a n s r d n t i C n ( c a f N e n a o n v a e f t d o t i v a r ) e Canada basis 1967 May 5............. 5.12 3.65 1.47 -.81 + .66 4,02 3.93 3.65 + .28 -. 17 + .11 12.............. 5.09 3.63 1.46 — .78 + .68 4.10 4.02 3.63 + .39 -.17 + .22 19............. 5.09 3.52 1.57 — .70 + .87 4.16 4 06 3.52 + 54 — 09 + 45 26............. 5.13 3.45 1.68 - ,69 + .99 4.21 4.11 3.45 + .66 -.15 + 51 5.12 3.37 1.75 — .70 + 1.05 4.24 4.14 3.37 + .77 — 28 + .49 9............ 5.12 3.40 1.72 — .45 + 1.27 4.33 4.23 3.40 + .83 -.22 + .61 16.............. 5.12 3.56 1.56 — .48 + 1.08 4.42 4.32 3.56 + .76 — 30 + .46 23............. 5.12 3.35 1 .77 -.39 + 1.38 4.35 4.24 3.35 + .89 -.22 + .67 30............. 5.12 3.82 1.30 — .43 + .87 4.28 4.18 3,82 + .36 — .22 + 14 July 7............. 5.18 4.19 .99 — .29 + .70 4,27 4.17 4.19 - .02 — .21 — .23 14............. 5.21 4.10 1.11 - 43 + .68 4.20 4.13 4.10 + 03 -37 — .34 21.............. 5.21 4.20 1.01 - ,67 + .34 4.30 4.20 4.20 00 — 58 - 58 28............. 5.21 4.10 1.11 -.62 + .49 4.34 4.23 4.10 + .13 -.71 -.58 Aug. 4............. 5.21 4.13 1.08 -.57 + .51 4,32 4.22 4.13 + .09 -.65 — .56 11.. 5.21 4.13 1.08 — .65 + .43 4.33 4.23 4.13 + . 10 - .75 — .65 18............. 5.16 4.17 .99 - .69 + .30 4.33 4.23 4. 17 + .06 — .97 — .91 25............. 5.16 4.34 .82 - .75 + .07 4.32 4.22 4.34 -. 12 -.97 -1.09 5.14 4.33 .81 — .80 + .01 4.33 4.22 4.33 -.11 — .97 -1.08 ‘ 8............. 5.14 4.27 ,87 -.81 + .06 4.37 4.26 4.27 - .01 -1.03 -1.04 15............. 5.14 4.36 .78 - .80 + .02 4.47 4.36 4.36 .00 -1.14 -1.14 22............. 5.24 4.55 .69 -.69 .00 4.51 4.39 4.55 -. 16 -1.18 -1.34 29............. 5.33 4.37 .96 -.68 + .28 4.78 4.67 4.37 + .30 -1.22 — .92 Oct. 6............. 5.33 4.50 .83 -.69 + .14 4.76 4.65 4.47 + .i8 -.90 -.72 Note.—Treasury bids: AU 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. hy 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 I, p. 1257, and to Table 2, p. 1460, 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

1846 MONEY RATES OCTOBER 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 I.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 3 i i i.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1966-—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............................ 4.4106 111.20 3.8668 2.0012 92.398 20.927 14.474 31.062 Dec............................ ,4039 ...............1.11.16 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........................... 5,3103 111.41 3.8679 2.0116 92.415 20.938 14.467 31.062 Apr............................ ,2850 111.52 3,8679 2.0121 92.378 20.954 14.472 31.063 May........................... .2851 111.43 3.8686 2.0145 92.400 20.946 14.453 31.062 June.......................... .2851 111.20 3.8698 2.0143 92,544 20.917 14.439 31.062 July............................ .2850 111.05 3,8714 2.0147 92.766 20.903 14.413 31.062 Aug............................ .2850 q10.97 3.8728 2.0148 92.937 20.900 14.403 31.062 Sept........................... .2851 110.90 3.8720 2.0146 92,989 20.894 14.417 31.062 Period F (f r r a a n n c c e ) ( G d m e e r u a m t r s k a c n ) h y e (r I u n p d e ia e ) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p en an ) ( M do s a l i l l a a a y r) ­ M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ s r) 1961. 20.384 24.903 20.980 280.22 .16099 .27690 32.659 8.0056 27.555 1962. 20.405 25.0(3 21.026 280.78 .16107 .27712 32.757 8.0056 27.755 1963. 620.404 25.084 20.966 280.00 .16087 .27663 32.664 8.0056 27.770 1964. 20.404 25.157 20.923 279.21 .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 25.007 716.596 279.30 .16014 .27598 32.538 8.0056 27.630 1966-—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 May......................... 20.319 25.147 13.267 279.69 .16008 .27628 32.572 8.0056 27,739 June........................... 20.375 25.122 13.242 279,12 .16007 .27627 32.519 8.0056 27.756 July............................ 20.395 24.996 13.224 278.73 .16020 .27620 32.478 8.0056 27.866 Aug............................ 20.386 24.985 13.220 278.53 .16041 .27599 32.467 8.0056 27.797 Sept............................. 20.382 24,988 13.217 278.37 .16049 .27618 32.441 8.0056 27.799 New Zealand South Africa United Period N (k o r r o w ne a ) y Po g r a t l a - (p S e p s a e i t n a) ( S k w ro ed n e a n ) ( e S f r r w l a a i n n t c z d ­ ) K d i o n m g- (pound) (dollar) (escudo) (pound) (rand) (pound) 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 ................. 139.13 1.6651 19.358 23.114 279.30 1966--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 138.99 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 May........................... 276.92 13.990 3.4830 139.32 1.6631 19.399 23.169 279.69 June........................... 276.35 13.992 3.4810 139.04 1.6632 19.415 23.166 279.12 July............................ 8276.12 9137.97 13.986 3.4788 138.85 1.6634 19.412 23.128 278,73 Aug............................. 137.89 13.981 3.4766 138.75 1.6637 19.394 23.061 278.53 Sept............................. 137,81 13.978 3,4755 ................ 138.66 1.6640 19,381 23.027 278.37 1 A new markka, equal to 100 old markkaa, was introduced on fan. I, » Based on quotations through July 7, 1967, 1963. « Effective July 10, 1967, New Zealand adopted the decimal currency 2 Based on quotations through Feb. 11, 1966. system. The new unit, the dollar, replaces the pound and consists of 100 3 Effective Feb. 14, 1966, Australia adopted the decimal currency cents, equivalent to 10 shillings or one-half the former pound. system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. Note.—Averages of certified noon buying rates in New York for 4 Quotations not available Nov. 4 and 7. cable transfers. For description of rates and back data, see “International 5 Quotations not available Mar. 7-14. Finance,” Section 15 of Supplement to Hanking and Monetary Statistics, 6 Effective Jan. 1, 1963, the franc again became the French monetary 1962. unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. 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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 Thomas J. O’Connell, Assistant General Examiner Counsel Frederick R. Dahl, Assistant Director Jerome W. Shay, Assistant General Counsel Jack M. Egertson, Assistant Director Wilson L. Hooff, Assistant General Counsel 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 J. Charles Partee, Associate Director Edwin J. Johnson, Director Kenneth B. Williams, Adviser John J. Hart, Assistant Director Stephen H. Axilrod, Associate Adviser Lyle E. Gramley, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES Stanley J. Sigel, Associate Adviser Joseph E. Kelleher, Director Tynan Smith, Associate Adviser Harry E. Kern, Assistant Director James B. Eckert, Assistant Adviser Murray S. Wernick, Assistant Adviser OFFICE OF THE CONTROLLER John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE Robert Solomon, Director OFFICE OF DEFENSE PLANNING Robert L. Sammons, Associate Director Innis D. Harris, Coordinator A. B. Hersey, Adviser Reed J. Irvine, Adviser DIVISION OF DATA PROCESSING Samuel I. Katz, Adviser Lawrence H. Byrne, Jr., Director John E. Reynolds, Adviser Lee W. Langham, Assistant Director Ralph C. Wood, Adviser John H. Rhinehart, Assistant Director 1847 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1848 FEDERAL RESERVE BULLETIN • OCTOBER 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 James Parthemos, 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 1849 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Deputy Chairman First Vice President in charge of branch Zip code Boston................... .. .02106 Erwin D. Canham George H. Ellis Charles W. Cole Earle O. Latham New York................ .10045 Everett N. Case Alfred Hayes Kenneth H. Hannan William F. Treiber Buffalo............... ...14240 Robert S. Bennett A. A. Maclnnes, Jr. Philadelphia.......... ...19101 Willis J. Winn Karl R. Bopp Bayard L. England Robert N. Hilkert Cleveland............... ...44101 Joseph B. Hall W. Braddock Hickman Logan T. Johnston Walter H. MacDonald Cincinnati......... ...45201 Barney A. Tucker Fred O. Kiel Pittsburgh......... ...15230 F. L. Byrom Clyde E. Harrell Richmond.............. ...23213 Edwin Hyde Edward A. Wayne Wilson H. Elkins Aubrey N. Heflin Baltimore........... ...21203 E. Wayne Corrin Donald F. Hagner Charlotte........... ...28201 James A. Morris Edmund F. MacDonald Atlanta.................. ...30303 Jack Tarver Harold T. Patterson Edwin I. Hatch Monroe Kimbrel Birmingham.... ...35202 C. Caldwell Marks Edward C. Rainey Jacksonville....... ...32201 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 A. B. Merritt Los Angeles....... ..90054 Arthur G. Coons Paul W. Cavan Portland............ ..97208 Graham J. Barbey William M. Brown Salt Lake City... ..84110 Royden G. Derrick Arthur L. Price Seattle............... ...98124 William McGregor Erwin R. Barglebaugh Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C., 20551. Where a charge is indicated, remittance should accom­ pany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic releases, see pp. 1069-72 of the June 1967 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, Colom­ Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ bia, Costa Rica, Cuba, Dominican Republic, rency. 1963. 11 pp. $.35. Sec. 12. Money Rates Ecuador, Guatemala, Haiti, Republic of Hon­ and Securities Markets. 1966. 182 pp. $.65. duras, Mexico, Nicaragua, Panama, Paraguay, Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ Peru, El Salvador, Uruguay, and Venezuela; 10 national Finance. 1962. 92 pp. $.65. Sec. 16 or more of same issue sent to one address, $5.00 (New) Consumer Credit. 1965. 103 pp. $.65. per annum or $.50 each. Elsewhere, $7.00 per Bank Mergers & the Regulatory Agencies: annum or $.70 a copy. Application of the Bank Merger Act of Federal Reserve Chart Book on Financial and 1960. 1964. 260 pp. $1.00 a copy; 10 or more Business Statistics. Monthly. Annual sub­ sent to one address, $.85 each. scription includes one issue of Historical Chart Banking Market Structure & Performance in Book. $6.00 per annum or $.60 a copy in the Metropolitan Areas: A Statistical Study United States and the countries listed above; of Factors Affecting Rates on Bank Loans. 10 or more of same issue sent to one address, 1965. 73 pp. $.50 a copy; 10 or more sent to $.50 each. Elsewhere, $7.00 per annum or $.70 one address, $.40 each. a copy. Farm Debt. Data from the 1960 Sample Survey Historical Chart Book. Issued annually in Sept. of Agriculture. 1964. 221 pp. $1.00 a copy; 10 Subscription to monthly chart book includes or more sent to one address, $.85 each. one issue. $.60 a copy in the United States and Merchant and Dealer Credit in Agriculture. countries listed above; 10 or more sent to one 1966. 109 pp. $1.00 a copy; 10 or more sent to address, $.50 each. Elsewhere, $.70 a copy. one address, $.85 each. Treasury-Federal Reserve Study of the Gov­ Monetary Theory and Policy: A Bibliography. ernment Securities Market. Pt. I. 1959. 108 Part I—Domestic Aspects. 137 pp. $1.00 a copy; pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. 10 or more sent to one address, $.85 each. Set of 3, $2.50; individual books $1.00 each. Regulations of the Board of Governors of Flow of Funds in the United States, 1939-53. the Federal Reserve System. 1955. 390 pp. $2.75. Rules of Organization and Procedure—Board Debits and Clearing Statistics and Their Use. of Governors of the Federal Reserve Sys­ 1959. 144 pp. $1.00 a copy; 10 or more sent to tem. 1967. 16 pp. one address, $.85 each. Published Interpretations of the Board of Governors, as of June 30, 1967, $2.50. The Federal Funds Market. 1959. Ill pp. $1.00 a copy; 10 or more sent to one address, Trading in Federal Funds. 1965. 116 pp. $1.00 $.85 each. a copy; 10 or more sent to one address, $.85 each. All-Bank Statistics, 1896-1955. 1959. 1,299 pp. U.S. Treasury Advance Refunding. June 1960- $4.00. July 1964. 1966. 65 pp. $.50 a copy; 10 or Industrial Production—1957-59 Base. 1962. more sent to one address, $.40 each. 172 pp. $1.00 a copy; 10 or more sent to one Survey of Financial Characteristics of Con­ address, $.85 each. sumers. 1966. 166 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. The Federal Reserve Act, as amended through Nov. 5, 1966, with an appendix containing pro­ The Performance of Bank Holding Companies. visions of certain other statutes affecting the 1967. 29 pp. $.25 a copy; 10 or more sent to Federal Reserve System. 353 pp. $1.25. one address, $.20 each. 1850 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS 1851 STAFF ECONOMIC STUDIES Businesses View Banking Services: A Survey of Cedar Rapids, Iowa, by Lynn A. Stiles. July Studies and papers on economic and financial sub­ 1967. ' ' ' jects that are of general interest in the field of The Impact of Monetary Variables: A Selec­ economic research. tive Survey of the Recent Empirical Lit­ erature, by Michael J. Hamburger. July 1967. Summaries only printed in the Bulletin. Empirical Literature on The U. S. Balance of Trade, by Charles K. Harley. July 1967. (Limited supply of mimeographed copies of full The Boom in Office Buildings, by Robert text available upon request for single copies.) Moore Fisher. Aug. 1967. Cyclical Determinants of Capital Expendi­ Customers View Bank Markets and Services: tures: A Regression Study of the United A Survey of Elkhart, Indiana, by George G. States Steel Industry, by James P. Bennett. Kaufman. Aug. 1967. July 1966. A Test of the Deposit Relationship Hypoth­ The European Economic Community’s Com­ esis, by Neil B. Murphy. Sept. 1967. mon Agricultural Policy and Its Impact Economic Trends in Latin America in the on U.S. Exports, by Thomas M. Klein. July 1960’s, by Yves Maroni. Oct. 1967. 1966. A Theory of Household Asset Selection, by Printed in full in the Bulletin. William J. Hocter. Aug. 1966. (Reprints available as shown in following list.) Liquidity Considerations and Monetary Management, by Leonall C. Andersen (with commentaries by Arthur L. Broida and Rich­ REPRINTS ard G. Davis). Sept. 1966. (From Federal Reserve Bulletin unless preceded The Overseas Dollar Bond Market and Re­ by an asterisk.) cent U.S. Borrowing Abroad, by Carl H. Stem. Sept. 1966. Adjustment for Seasonal Variation. Descrip­ Mexico’s Economic and Financial Record, by tion of method used by Board in adjusting eco­ Yves Maroni. Oct. 1966. nomic data for seasonal variations. June 1941. Measures of Industrial Production and Final 11 PP- Demand, by Clayton Gehman and Cornelia Seasonal Factors Affecting Bank Reserves. Motheral. Jan. 1967. Feb. 1958. 12 pp. Firms’ Demands For Money: The Evidence Liquidity and Public Policy, Staff Paper by From the Cross-Section Data, by William J. Stephen H. Axilrod. Oct. 1961. 17 pp. Frazer, Jr. Jan. 1967. Seasonally Adjusted Series for Bank Credit. The Relative Impact of Money and Income July 1962. 6 pp. on Interest Rates: An Empirical Investi­ Interest Rates and Monetary Policy, Staff gation, by William E. Gibson and George G. Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Kaufman. Feb. 1967. Industrial Production—1957-59 Base. Oct. The Effect of Credit Conditions on State 1962. 10 pp. and Local Bond Sales and Capital Outlays Flow of Funds Seasonally Adjusted. Nov. Since World War II, by Paul F. McGouldrick. 1962. 15 pp. Feb. 1967. ’ A Sectoral Analysis of Velocity, Staff Paper Investment by Manufacturing Firms: A Quar­ by Paul F. McGouldrick. Dec. 1962. 14 pp. terly Time Series Analysis of Industry New Foreign Bond Issues in the U.S. Market, Data, by Robert W. Resek. Mar. 1967. Staff Paper by Robert F. Gemmill. May 1963. Individuals as a Source of Loan Funds for 13 pp. State and Local Governments, by Helmut Recent Changes in Liquidity, Staff Paper by Wendel. Apr. 1967. Daniel H. Brill. June 1963. 10 pp. Variable-Rate Mortgages, by Robert Moore Measures of Member Bank Reserves. July Fisher. May 1967. 1963. 14 pp. ' The Financing of Capital Investment in the Measuring and Analyzing Economic Growth, USSR, by Paul Gekker. June 1967. Staff Paper by Clayton Gehman. Aug. 1963. Federal Fiscal Policy and Aggregate De­ 14 pp. mand, 1956-1966, by Helen B. Junz. June Changes in Banking Structure, 1953-62. Sept. 1967. ' 1963. 8 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1852 FEDERAL RESERVE BULLETIN • OCTOBER 1967 Economic Change and Economic Analysis, Auto Loan Characteristics at Major Sales Staff Paper by Frank R. Garfield. Sept. 1963. Finance Companies. Feb. 1967. 5 pp. 17 PP- Consumer Instalment Credit. Mar. 1967. Federal Reserve Security Transactions, 1954­ 12 pp. 63, Staff Paper by Stephen H. Axilrod and Treasury and Federal Reserve Foreign Ex­ Janice Krummack. July 1964. 16 pp. change Operations. Mar. 1967. 12 pp. Yield Differentials in Treasury Bills, 1959­ The Balance of Payments in 1966. Apr. 1967. 64, Staff Paper by Samuel I. Katz. Oct. 1964. 16 pp. 20 pp. Changes in Time and Savings Deposits, May Research into Banking Structure and Com­ 1966-January 1967. Apr. 1967. 17 pp. petition. Nov. 1964. 17 pp. Survey of Finance Companies, Mid-1965. Apr. Time Deposits in Monetary Analysis, Staff 1967. 26 pp. Economic Study by Lyle E. Gramley and Sam­ uel B. Chase, Jr. Oct. 1965. 25 pp. Monetary Policy and Economic Activity: A Fiscal Policy and Debt Management. Nov. Postwar Review. May 1967. 22 pp. 1965, 11 pp. Revision in Quarterly Survey of Interest Cycles and Cyclical Imbalances in a Chang­ Rates on Business Loans. May 1967. 7 pp. ing World. Staff Paper by Frank R. Garfield. Monetary Policy and the Residential Mort­ Nov. 1965. 15 pp. gage Market. May 1967. 13 pp. Research on Banking Structure and Per­ Evidence on Concentration in Banking Mar­ formance, Staff Economic Study by Tynan kets and Interest Rates, Staff Economic Smith. Apr. 1966. 11 pp. Study by Almarin Phillips. June 1967. 11 pp. Commercial Bank Liquidity. Staff Economic Bank Financing of Agriculture. June 1967. Study by James Pierce. Aug. 1966. 9 pp. 23 pp. Changes in Time and Savings Deposits, De­ New Benchmark Production Measures, 1958 cember 1965-May 1966. Aug. 1966. 35 pp. and 1963. June 1967, 4 pp. Revision of Weekly Reporting Member Bank Banking and Monetary Statistics, 1966. Series. Aug. 1966. 4 pp. Selected series of banking and monetary statis­ Interest Rates in Western Europe. Sept. tics for 1966 only. Mar. and July 1967. 20 pp. 1966. 19 pp. Recent Credit and Monetary Developments. Revision of Money Supply Series, Sept. 1966. July 1967. 12 pp. 13 pp. Changes in Time and Savings Deposits, Jan­ Interest Rates in U.S. Capital Markets, Nov. uary-April 1967. July 1967. 16 pp. 1966. 16 pp. Toward Understanding of the Whole De­ Revised Indexes of Manufacturing Capacity veloping Economic Situation, Staff Eco­ and Capacity Utilization. July 1967. 3 pp. nomic Study by Frank R. Garfield. Nov. 1966. The Public Information Act—Its Effect on 14 pp. Member Banks. July 1967. 6 pp. A Revised Index of Manufacturing Capacity, Interest Cost Effects of Commercial Bank Staff Economic Study by Frank de Leeuw with Underwriting of Municipal Revenue Bonds. Frank E. Hopkins and Michael D. Sherman. Aug. 1967. 16 pp. Nov. 1966. 11 pp. Revision of Money Supply Series. Aug. 1967. Time Deposits and Financial Flows. Dec. >4 pp. 1966. 14 pp. Changes in Time and Savings Deposits, April- Balance of Payments Program: Guidelines July 1967. Sept. 1967. 22 pp. for Banks and Nonbank Financial Institu­ Revision of Bank Credit Series. Sept. 1967. tions. Dec. 1966. 8 pp. 7 PP- The Role of Financial Intermediaries in U.S. Treasury and Federal Reserve Foreign Ex­ Capital Markets, Staff Economic Study by change Operations. Sept. 1967, 13 pp. Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. Commercial Banks and the Supply of Money: Size and Composition of Consumer Saving. A Market-Determined Demand Deposit Jan. 1967. 19 pp. Rate, Staff Economic Study by John H. Recent Bank Credit and Monetary Develop­ Kareken. Oct. 1967. 14 pp. ments. Feb. 1967. 13 pp. Revised Series on Commercial and Industrial The Economic Pause in Western Europe. Loans by Industry. Feb. 1967. 2 pp. Oct. 1967. 17 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 1752.) Acceptances, bankers', 1761, 1779, 1781 Deposits—Continued Agricultural loans of commercial banks, 1772, 1774 Banks, by classes, 1761, 1768, 1773, 1776, 1781 Arbitrage, 1845 Federal Reserve Banks, 1762, 1839 Assets and liabilities (See also Foreign liab. & claims): Postal savings, 1760, 1767 Banks and the monetary system, 1767 Subject to reserve requirements, 1766 Banks, by classes, 1768, 1772, 1774, 1781 Discount rates, 1759, 1844 Corporate, current, 1793 Discounts and advances by Reserve Banks, 1754, Federal Reserve Banks, 1762 1762, 1764 Automobiles: Dividends, corporate, 1792, 1793 Consumer instalment credit, 1798, 1799, 1800 Dollar assets, foreign, 1829, 1834 Production index, 1802, 1803 Earnings and hours, manufacturing industries, 1809 Bankers’ balances, 1773, 1775 Employment, 1806, 1808, 1809 (See also Foreign liabilities and claims) Banks and the monetary system, 1767 Farm mortgage loans, 1794, 1795, 1796 Banks for cooperatives, 1783 Federal finance: Bonds (See also U.S. Govt, securities): Cash transactions, 1784 New issues, 1789, 1790, 1791 Receipts and expenditures, 1785 Prices and yields, 1779, 1780 Treasurer's balance, 1784 Business expenditures on new plant and equip­ Federal funds, 1758, 1772 ment, 1793 Federal home loan banks, 1783, 1795 Business indexes, 1806 Federal Housing Administration, 1780, 1794, Business loans (See Commercial and industrial loans) 1795, 1796 Federal intermediate credit banks, 1783 Capital accounts: Federal land banks, 1783 Banks, by classes, 1768, 1773, 1777 Federal National Mortgage Assn., 1783, 1796 Federal Reserve Banks, 1762 Federal Reserve Banks: Carloadings, 1806 Condition statement, 1762 Central banks, foreign, 1842, 1844 Certificates of deposit, 1777 U.S. Govt, securities held, 1754, 1762, 1764, Coins, circulation, 1765 1786, 1787 Commercial and industrial loans: Federal Reserve credit, 1754, 1762, 1764 Commercial banks, 1772 Federal Reserve notes, 1762, 1765 Weekly reporting banks, 1774, 1778 Federally sponsored credit agencies, 1783 Commercial banks: Finance company paper, 1779, 1781 Assets and liabilities, 1768, 1772, 1774 Financial institutions, loans to, 1772, 1774 Consumer loans held, by type, 1799 Float, 1754 Deposits at, for payment of personal loans, 1771 Flow of funds, 1814 Number, by classes, 1768 Foreign currency operations, 1762, 1764, 1828, Real estate mortgages held, by type, 1794 1829, 1834 Commercial paper, 1779, 1781 Foreign deposits in U.S. banks, 1754, 1762, 1767, Condition statements (See Assets and liabilities) 1773, 1776, 1839 Construction, 1806, 1807 Foreign exchange rates, 1846 Consumer credit: Instalment credit, 1798, 1799, 1800, 1801 Foreign liabilities and claims: Noninstalment credit, by holder, 1799 Banks, 1830, 1831, 1833, 1835, 1837, 1839 Consumer price indexes, 1806, 1810 Nonfinancial concerns, 1840 Consumption expeditures, 1812, 1813 Foreign trade, 1827 Corporations: Sales, profits, taxes, and dividends, 1792, 1793 Gold: Security issues, 1790, 1791 Certificates, 1762, 1765 Security prices and yields, 1779, 1780 Earmarked, 1839 Cost of living (See Consumer price indexes) Net purchases by U.S., 1828 Currency in circulation, 1754, 1765, 1766 Production, 1843 Customer credit, stock market, 1780 Reserves of central banks and govts., 1842 Stock, 1754, 1767, 1828 Debits to deposit accounts, 1764 Gross national product, 1812, 1813 Debt (See specific types of debt or securities) Demand deposits: Hours and earnings, manufacturing industries, 1809 Adjusted, banks and the monetary system, 1767 Housing starts, 1807 Adjusted, commercial banks, 1764, 1766, 1773 Banks, by classes, 1761, 1768, 1773, 1776 Subject to reserve requirements, 1766 Income, national and personal, 1812, 1813 Turnover, 1764 Industrial production index, 1802, 1806 Deposits (See also specific types of deposits): Instalment loans, 1798, 1799, 1800, 1801 Accumulated at commercial banks for payment Insurance companies, 1782, 1786, 1787, 1795 of personal loans, 1771 Insured commercial banks, 1770, 1771, 1772 Adjusted, and currency, 1763 Interbank deposits, 1761, 1768, 1773 1853 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1854 FEDERAL RESERVE BULLETIN • OCTOBER 1967 Interest rates: Reserves: Business loans by banks, 1778 Central banks and govts., 1842 Federal Reserve Bank discount rates, 1759 Commercial banks, 1773, 1775 Foreign countries, 1844, 1845 Federal Reserve Banks, 1762 Money market rates, 1779, 1845 Member banks, 1754, 1756, 1761, 1766, 1773 Mortgage yields, 1780, 1797 Residential mortgage loans, 1794, 1795, 1796, 1797 Time deposits, maximum rates, 1760 Retail credit, retail sales, 1798, 1806 Yields, bond and stock, 1779 International capital transactions of the U.S., 1830 Sales finance companies, loans, 1798, 1799, 1801 International institutions, 1828, 1829, 1842, 1844 Saving: Inventories, 1812 Flow of funds series, 1814 Investment companies, new issues, 1791 National income series, 1813 Investments (See also specific types of investments): Savings and Ioan assns., 1782, 1787, 1795 Banks, by classes, 1768, 1772, 1775, 1781 Savings deposits (See Time deposits) Commercial banks, 1771 Savings institutions, principal assets, 1781, 1782 Federal Reserve Banks, 1762, 1764 Securities (See also U.S. Govt, securities): Life insurance companies, 1782 Federally sponsored agencies, 1783 Savings and loan assns., 1782 International transactions, 1838, 1839 New issues, 1789, 1790, 1791 Labor force, 1808 Silver coin and silver certificates, 1765 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 1768, 1772, 1774, 1781 Deposits of, 1773, 1776 Commercial banks, 1771 Holdings of U.S. Govt, securities, 1786, 1787 Federal Reserve Banks, 1754, 1762, 1764 New security issues, 1789, 1790 Insurance companies, 1782, 1795 Ownership of obligations of, 1772, 1775, Insured or guaranteed by U.S., 1794, 1795, 1796 1781, 1782 Savings and loan assns., 1782, 1795 Prices and yields of securities, 1779, 1780 State member banks, 1770, 1771 Stock market credit, 1780 Manufactures, production index, 1803, 1806 StocRs' Margin requirements, 1760 New issues, 1790, 1791 Member banks: Prices and yields, 1779, 1780 Assetsand liabilities, by classes, 1768, 1772 Borrowings at Reserve Banks, 1756, 1762 Tax receipts, Federal, 1785 Deposits, by classes, 1761 Time deposits, 1760, 1761, 1766, 1767, 1768, Number, by classes, 1769 1773, 1776 Reserve position, basic, 1758 Treasurer’s account balance, 1784 Reserve requirements, 1760 Treasury cash, Treasury currency, 1754, 1765, 1767 Reserves and related items, 1754, 1766 Treasury deposits, 1754, 1762, 1784 Mining, production index, 1803, 1806 Money rates (See Interest rates) Unemployment, 1808 Money supply and related data, 1766 U.S. balance of payments, 1826 Mutual funds (See Investment companies) U.S. Govt, balances: Mutual savings banks, 1767, 1768, 1770, 1781, 1786, Commercial bank holdings, 1773, 1776 1787, 1794 Consolidated monetary statement, 1767 Member bank holdings, 1766 National banks, 1770, 1771 Treasury deposits at Federal Reserve Banks, National income, 1812, 1813 1754, 1762, 1784 National security expenditures, 1785, 1812 U.S. Govt, securities: Nonmember banks, 1770, 1771, 1772, 1773 Bank holdings, 1767, 1768, 1772, 1775, 1781, 1786, 1787 Dealer transactions, positions, and financing, 1788 Open market transactions, 1761 Federal Reserve Bank holdings, 1754, 1762, 1764, 1786, 1787 Payrolls, manufacturing, index, 1806 Foreign and international holdings, 1762, 1834, Personal income, 1813 1838, 1839 Postal Savings System, 1760, 1767 International transactions, 1834, 1838 Prices: New issues, gross proceeds, 1790 Consumer and wholesale commodity, 1806, 1810 Open market transactions, 1761 Security, 1780 Outstanding, by type of security, 1786, Production, 1802, 1806 1787, 1789 Profits, corporate, 1792, 1793 Ownership of, 1786, 1787 Prices and yields, 1779, 1780, 1845 Real estate loans: United States notes, 1765 Banks, by classes, 1772, 1774, 1781, 1794 Utilities, production index. 1803, 1806 Delinquency rates on home mortgages, 1797 Mortgage yields, 1780, 1797 Vault cash, 1754, 1760, 1773 Nonfarm mortgage foreclosures, 1797 Veterans Administration, 1794, 1795, 1796 Type of holder and property mortgaged, 1794, 1795, 1796 Weekly reporting banks, 1774 Reserve position, basic, member banks, 1758 Reserve requirements, member banks, 1760 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 ☆ (f THE FEDERAL RESERVEF YSTEM ~ ) s q a “““ 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