Federal Reserve Bulletin, 1968-01

FEDERAL RESERVE BULLETIN JANUARY 1968 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BULLETIN NUMBER 1 □ VOLUME 54 □ JANUARY 1968 CONTENTS 1 Resurgence of Growth in the Labor Market Staff Economic Study 11 The Federal Reserve-MIT Econometric Model 41 Changes in Time and Savings Deposits, July-October 1967 63 Balance of Payments—Revised Guidelines for Banks and Non­ bank Financial Institutions 72 Record of Policy Actions of the Federal Open Market Committee 79 Law Department 84 Announcements 98 National Summary of Business Conditions Financial and Business Statistics A- 1 Contents A- 3 Guide to Tabular Presentation A- 4 U.S. Statistics A-66 International Statistics A-87 Board of Governors and Staff A-88 Open Market Committee and Staff; Federal Advisory Council A-89 Federal Reserve Banks and Branches A-91 Federal Reserve Board Publications A-94 Index to Statistical Tables Map of Federal Reserve System On Inside Back Cover 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 edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Resurgence of Growth in the Labor Market EARLY IN 1967, after several years of rapid and sustained growth in employment, the labor market eased somewhat. Late in the year, it firmed significantly and by December had returned to the relatively tight condition of a year earlier. The major measures of labor market activity took the following shapes in 1967. □ Growth in employment had been curtailed, along with output, early in 1967 by sharp downward inventory adjustments and to some extent by the tapering off of the plant and equipment boom. However, with the recovery of growth in real output, employment regained its upward momentum. Although expansion in the manu­ facturing sector was halted temporarily by strikes in the automobile industry and elsewhere in the fall, by December employment was again rising at a brisk rate in almost all sectors of the economy, and the workweek in manufacturing had recovered much of the earlier decline. □ Unemployment at first showed little response to the employ­ ment cuts because many marginal workers left the labor force or failed to enter. Unemployment rates remained relatively low for adult males but tended to rise until late in the year among the more vulnerable members of the labor force: nonwhite, teenage, and the less skilled workers. At the year’s end the over-all unemploy­ ment rate had returned to its low level of a year earlier. □ Wages in manufacturing continued to increase at a sharp pace Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

2 FEDERAL RESERVE BULLETIN □ JANUARY 1968 EMPLOYMENT and EARNINGS Increase rapidly in late 1967; UNEMPLOYMENT drops to end-of-1966 level 1065*100 PER CENT NONAGRICULTURAL EARNINGS (MFG.) UNEMPLOYMENT EMPLOYMENT , Bureau of Labor Statistics data. Employment figures and un- workers in manufacturing; “real” estimated for fourth quarter employment rates (per cent of civilian labor force) are sea- 1967. sonally adjusted. Earnings are average per hour for production throughout 1967—reflecting the rapid rise in living costs and con­ siderable collective bargaining activity in a still generally tight labor market. At the same time, productivity gains deteriorated as growth in manufacturing output and rates of capacity utili­ zation declined. The resultant sharp rise in unit labor costs put further pressure on prices. However, late in the year, unit labor costs receded somewhat from earlier highs as productivity gains recovered somewhat. Substantial increases in the cost of living and the reduction in the workweek from the peak levels of 1966 eroded the rise in money earnings in 1967, and real earnings in manufacturing showed little improvement over the year. With economic expansion likely to gain momentum and con­ sumer prices to increase further, continued rapid advances in compensation per manhour are probable in 1968. However, a more rapid rise in productivity should accompany further growth of output and this should moderate the rise in unit labor costs. DEMAND FOR LABOR Nonfarm payroll employment, after a sharp increase from the fourth quarter of 1966, showed only a slight gain between the first and second quarters of 1967. But the pause in employment growth turned out to be relatively short-lived. By the year-end, employ­ ment had risen substantially from the second quarter and was 1.9 million above its level a year earlier—an increase sufficient to ab­ sorb a rather substantial expansion in the labor force. Unemploy­ ment had also dropped sharply to the 3.7 per cent rate of the year earlier. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

GROWTH IN THE LABOR MARKET 3 Manufacturing. Manufacturing employment bore the brunt of the inventory adjustment in 1967. In December factory employ­ ment was still about 60,000 below a year earlier, despite rapid year-end increases. This decline followed 2 years of unusually rapid expansion—about 800,000 persons in 1965 and 1.1 million in 1966. Declines in employment early in 1967 were concentrated in durable goods manufacturing—reflecting the dip in construction activity and reduced sales of autos and other consumer durable i i i i i goods. Employment in nondurable goods manufacturing also 1963 1885 showed little vigor early in the year. This was particularly true of BLS payroll data, seasonally ad­ justed. Defense-related industries in­ the textile, leather, and apparel industries. clude ordnance, communication equipment, electronic components, A slowdown in the rate of growth of employment in defenseaircraft and parts, and ship and boat building. related industries also contributed to the sluggishness in manu­ facturing employment. Employment in these industries grew by only 70,000 workers in the year ending December 1967, in con­ trast to a gain of almost 300,000 the year before. Although downward adjustments in employment were largely completed by midyear, the picture in manufacturing employment did not change dramatically until the fourth quarter—following the end of major strikes and the resumption of full production of autos late in November. Nonmanufacturing. Employment in the trade, service, finance, and State and local government sectors, which appeared to be immune to the weakness affecting the industrial sector, continued to expand throughout 1967 and together provided a total of 1.8 million additional jobs in the year ending December 1967. These Private NONINDUSTRIAL and State and local GOVERNMENT employment continued to rise sharply in 1967 BLS payroll data, seasonally adjusted. Industrial group includes manufacturing, mining, con­ struction, and transportation and public utilities. Nonindustrial includes trade, finance, and services. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

4 FEDERAL RESERVE BULLETIN □ JANUARY 1968 WORKWEEK sectors, which have continued to account for much of the growth I I in over-all employment throughout the postwar years, lent sig­ nificant stability to the labor market and strong stimulus to rising MANUFACTURING wage and salary income during 1967. Although activity in residential building recovered rapidly in 1967, construction employment showed little strength through most of the year. In the last few months it began to show brisk I I 1985 1866 1887 growth, however, and by the year-end was at a higher level than BLS seasonally adjusted data for a year earlier. average weekly hours of production workers. State and local government employment increased by 600,000 during the year, about the same rise as in 1966. As in other recent years teachers and other school personnel accounted for two-thirds of the rise. Federal civilian payrolls had expanded by more than 200,000 in 1966—reflecting largely the impact of the military build-up in Vietnam. This increase in Federal employment was substantially greater than at any time since the Korean war. Federal employ­ ment continued to rise at a rapid rate through the first half of 1967. Growth tapered off about midyear and employment began to show a definite downtrend in the fall, because of curtailed hiring for Government agencies. By December Federal employ­ ment was 65,000 below its midyear high. Hours. As is typical, the decline in employment in manufactur­ ing in the first half of 1967 was anticipated by a reduction in the workweek. Hours in manufacturing in 1966 had been extremely high—above the previous postwar peak of the Korean war—and were reduced rather sharply in late 1966 and early 1967. Reduc­ tions in the workweek reflected in part an attempt to reduce high overtime and other premium costs without cutting back employ­ ment greatly. Since the labor market remained relatively tight, employers feared the loss of workers who might be needed later. The workweek was lengthened moderately as output recovered, but in December, at 40.8 hours, it was 0.8 of an hour below the 1966 peak. LABOR FORCE The civilian labor force last year grew more rapidly than the an­ ticipated “normal” growth. The increase of 1% million persons during the year ending in the fourth quarter was somewhat greater than the rise in 1966. Two important new influences dominated changes in the civilian labor force in 1967—the stabilization of demand for manpower by the military and an increase in the num­ ber of young male adults in the work force. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

GROWTH IN THE LABOR MARKET 5 . LABOR FORCE grows faster than in '66; 0 increase is sharp for men BLS household survey data, for civilian labor force, seasonally adjusted. Adults, age 20 and over; teenagers, age 16 to 19. The relative stability in the size of the Armed Forces was in sharp contrast to the increase of half a million in the preceding year. The pressure on the supply of draft-age men (mainly 19 to 24 years) was thus significantly lessened, and more of these men entered the civilian labor market in 1967. The changing impact of demographic factors also tended to result in a significantly different age-sex composition of labor force growth: there was a substantial rise in the number of adult men, but a decrease among teenagers. During the preceding several years there had been little net increase in the number of adult men in the civilian labor force; most of the growth had been provided by women and teenagers. Adult women accounted for about 1.1 million, or about two-thirds, of the growth in the civilian labor force in each of the past 2 years. The largest increase in more than a decade in the number of adult males in the civilian labor force occurred in 1967—about 800,000 over the year. The moderate additional manpower needs for the military in 1967, plus the fact that more of the population bulge—the heritage of the post-World War II baby boom—had passed age 20, made large numbers of men available for the civil­ ian labor force. With the economy apparently again entering a period of rapid growth, the increased supply of adult men should help to ease manpower pressures in 1968. In recent years the small growth in the adult male population has tended to aggravate scarcities of skilled labor. In contrast with other recent years somewhat fewer teenagers were in the labor force in 1967. But the teenage population will Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

6 FEDERAL RESERVE BULLETIN □ JANUARY 1968 begin to move up again during 1968, and with increasing de­ mands for manpower, the number in the labor force should rise moderately in the next few years. UNEMPLOYMENT The year 1967 began with a generally tight labor market; the over-all unemployment rate was 3.7 per cent, and the rate for adult males was close to 2 per cent—virtually at frictional levels. The total unemployment rate remained remarkably stable at low levels throughout most of the first half of the year, despite the de­ cline in industrial production, the slow rate of increase in real aggregate demand, and the curtailment in employment growth. The unemployment rate rose sharply in the third quarter when in­ creases in the labor force and the indirect impact of the auto strike increased the rate in October to its 1967 high of 4.3 per cent. However, by this time the labor market was already show­ ing other signs of recovery. In December the unemployment rate was again down to the 3.7 per cent rate prevailing at the beginning of the year. 4 | Rates of UNEMPLOYMENT increased for some groups in 1967 PER CENT I I 16 TEENAGERS .^ * 12 BLS household data (per cent of civilian labor force), seasonally adjusted. The general stability of the unemployment rate in the face of a shift from rapid employment gains in 1966 to moderate de­ clines in employment early in 1967 was the result of a reduction in the labor force at the same time that total employment was being cut back. Some adjustment in the rate of growth of the labor force normally accompanies substantial changes in growth of em­ ployment. The extent of the decline in 1967 may reflect the large number of women and teenagers who were drawn into the labor force in 1966. These workers tend to enter the labor force when Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

GROWTH IN THE LABOR MARKET 7 jobs are plentiful and to leave (or are less likely to enter) when jobs are harder to obtain. Young workers. The unemployment rate for teenage workers rose in 1967 in reaction to reduced employment opportunities. By the fall of the year, the rate for teenagers had reached 15 per cent (in October), compared with about 12 per cent at the beginning of the year. It was not until the surge of employment growth at the year-end that the teenage unemployment rate showed signs of dropping. The experience of 1967 emphasizes again the extreme vulnerability of untrained, inexperienced youth in the labor force and underlines the need for continuing and expanded programs of education and training. Nonwhite workers. Unemployment among nonwhite workers remains one of the most serious of the nation’s continuing unem­ ployment problems. The unemployment rate for these work­ ers, about 8 per cent in the fourth quarter of 1967, continued to be more than double that for white workers. Because they are concentrated in relatively unskilled occupations, nonwhite work­ ers are particularly vulnerable when available openings in blue collar occupations are reduced. As a result, nonwhite males made little further progress in improving their place in the occupational structure. However, the continued expansion of the service indus­ tries and of white collar occupations in 1967 provided an oppor­ tunity for nonwhite females to upgrade further their occupational levels; there was a substantial increase in the numbers of nonwhite women employed in clerical positions and a proportionate decline among those engaged in household services. COMPENSATION, Unit labor costs in manufacturing rose by almost 5 per cent be­ PRODUCTIVITY, AND tween the fourth quarters of 1966 and 1967—as compared with UNIT LABOR COSTS less than 3 per cent in the preceding year. This increase reflected a continued rapid rate of gain in compensation per manhour in conjunction with a much slower growth in productivity. The sharp jump in labor costs during the past 2 years contrasts with the 1960-65 period, when wage gains had been about in line with the growth in productivity, and labor costs and industrial prices had remained relatively stable. The reduction in output and lower rates of capacity utilization in 1967 tended to dampen productivity growth in manufacturing until late in the year. The pace of productivity growth was also reduced by the tendency for some employers to hoard labor, par- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN □ JANUARY 1968 ticularly skilled and white collar workers, in what continued to be MANUFACTURING ‘““’“"““""“peFcentage change a relatively tight labor market. Consequently, the rate of growth in HOURLY EARNINGS output per manhour in manufacturing dropped from about 3 per cent in the year ending in the fourth quarter of 1966 to 1 per cent in the corresponding period of 1967. By comparison, the rate of productivity growth in manufacturing from 1960 to 1965 had averaged almost 4 per cent. For the private economy as a whole, unit labor costs rose rapidly during last year. In nonmanufacturing industries, wage gains were equal to or higher than those in manufacturing, while productivity gains were probably well below the long-term average. Earnings in manufacturing. A heavy collective bargaining sched­ ule throughout 1967, continued sharp increases in the consumer price index after the early months of the year, and the direct and indirect effects of the increase in the minimum wage combined to cause a sharper rise in average hourly earnings in 1967 than in 1966. Increases in hourly earnings of production workers in manu­ facturing industries were dampened by reduced overtime. Never­ theless these earnings were up by 4 per cent over the year ending in the fourth quarter. By December, after settlement of the auto strike, they averaged $2.90, about 4.7 per cent higher than a year earlier, as compared with an average of 3.7 per cent in the two ’60-'65 04 '65- 04 '66preceding years. Output per manhour and earnings, Federal Reserve; unit labor cost, Average earnings were also held down during most of the year Bureau of the Census. Earnings in­ clude wages, salaries, and fringes. by the relative lack of employment growth in high-wage industries. Straight-time earnings, excluding the effects of overtime and inter­ industry shifts in employment, showed a substantially faster rise than gross average hourly earnings for most of 1967. With em­ ployment and the workweek increasing, especially in the higherwage industries, average earnings are likely to climb more sharply in the coming months. Despite the substantial gain in hourly earnings, the average worker’s real weekly pay in manufacturing showed virtually no change in 1967. The combined impact of a shorter workweek and of rapidly rising consumer prices offset the rise in money earnings. Real weekly earnings had increased 1.5 per cent in 1966 and had risen at an annual rate of about 2.5 per cent from 1960 to 1965. Earnings in nonmanufacturing. The generally less organized and lower-wage nonmanufacturing industries have played an important role in the upward pressure on wages and costs in recent years. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

GROWTH IN THE LABOR MARKET 9 Continued rapid growth in employment, which required em­ ployers to bid up wages to hold or obtain workers, and the in­ creases in the statutory minimum wage last February resulted in an acceleration in hourly earnings in the trade and service sectors. Substantial increases in earnings were apparent in some of the more organized and higher paying industries, such as construction, railroads, and trucking. Average hourly earnings in construction rose by 6 per cent over the year, somewhat more than in 1966. EARNINGS rise rapidly in 1967--faster in 5 nonmanufacturing than in manufacturing The outlook is for further rapid increases in wages in 1968— reflecting continued large demands for manpower, a generally tight labor market, and an additional rise in the minimum wage on February 1 of this year. COLLECTIVE Collective bargaining in 1967 was highlighted by the renegotiation BARGAINING of an unusually large number of long-term contracts expiring in key industries. Settlements provided increases in wages and benefits averaging about 5.5 per cent in 1967, as compared with 4.5 per cent in 1966. Union demands for substantial wage in­ creases were met in some instances by employer resistance in several important industries, including autos, copper, rubber, steel haulers, and several machinery industries. As a result, 1967 had the largest number of strike days since 1959. The sharply rising cost of living over the past 2 years led to major emphasis on increases in wage rates. This emphasis also reflected the large number of new young workers in industry and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN □ JANUARY 1968 their concern with current income rather than retirement and other deferred benefits. Skilled workers in 1967 objected to the narrowing of wage differentials—which is not unusual in a tight labor market; as a result they demanded, and in most instances received, additional wage increases. The most important contract settlement of 1967—in the auto industry—confirmed a rising trend in the size of wage settlements and probably set a target for important negotiations coming up in 1968. The wage and fringe benefit cost of the contracts was esti­ mated at about 6 per cent a year over the 3-year-contract period. A special wage adjustment of 30 cents for skilled workers, in addition to the 20 cent increase for all workers, resulted in a sub­ stantially higher—about 7.5 per cent—average increase in total costs in the first year of the contract. Despite the trend of rising consumer prices, contracts nego­ tiated during the year did not result in the introduction of many new cost of living clauses. In some instances employers bargained to limit the range and frequency of wage adjustments tied to the consumer price index, and they appeared willing to allow larger immediate wage adjustments in order to restrict escalator clauses in contracts. In the automobile industry, where the cost of living clause has been in effect since 1950, the new contract for the first time places a ceiling on the amount that can be paid out during the contract period. However, there may be considerable pressure to reinstate such clauses—discontinued in the early 1960’s—in the upcoming steel, aluminum, can, and railroad contracts. About 2.2 million workers in the automobile, aircraft, machinery, meat­ packing, and trucking industries are now covered by cost of living clauses. Wages for about 4 million workers will be subject to renegotia­ tion in 1968. In addition, the largest number of workers since 1957 —4.6 million—will receive automatic increases under the higher wage contracts already negotiated, mostly in 1966 and 1967. Con­ tinued pressure is expected for wage adjustments and rapid gains in compensation, which will provide additional impetus to rising labor costs. However, a substantial increase in real output should bring an associated faster rise in productivity, and this could help to limit increases in unit labor costs in manufacturing industries. In nonmanufacturing sectors, where the acceleration in output and productivity is likely to be less dramatic, unit labor costs are ex­ pected to increase about in line with recent experience. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Study THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL Frank de Leeuw and Edward Gramlich—Staff, Board of Governors From time to time the Federal Reserve thors are responsible for the analyses and Bulletin publishes in full staff studies that conclusions set forth and the views ex­ are of general interest to the economics pro­ pressed are not necessarily those of the fession and others. Board of Governors, the Federal Reserve As in all staff economic studies, the au- Banks, or members of their staffs. For the last year and a half, a group of than existing models about the effects of economists at the Massachusetts Institute of monetary policy instruments—both in them­ Technology and at the Board of Governors selves and in comparison with other policy of the Federal Reserve System have been instruments. No existing model has as its working together on a new quarterly econo­ major purpose the quantification of mone­ metric model of the United States.1 This tary policy and its effect on the economy. paper is the first report of some of the pre­ As a consequence even those which do con­ liminary results of the model. tain some treatment of monetary instru­ Since the number of econometric models ments and effects suffer from puzzling re­ of the United States can no longer be sults either in their financial sectors or in counted on the fingers of even two hands, the response to financial variables in other it is natural to wonder why we are adding sectors—results which their proprietors one more to the list. In this instance the would surely investigate further were the major purpose is to be able to say more models to be used to say something about monetary developments on a current basis. We have tried to avoid these difficulties by 1 Paper presented at the fifteenth annual Conference on the Economic Outlook, University of Michigan, concentrating most of our efforts on the Ann Arbor, Nov. 16, 1967, and reprinted by per­ treatment of financial markets and on the mission of the Department of Economics, University links between financial markets and markets of Michigan. The MIT group was under the direction of Franco for goods and services. Modigliani and Albert Ando, and included varying A few comments on some of the differ­ proportions of the time of Charles Bischoff, Dwight Jaffe, Morris Norman, Robert Rasche, Harold Shapiro, ences between the Federal Reserve-MIT Gordon Sparks, and Richard Sutch. and other models may clarify this last point. The Federal Reserve group currently includes, be­ sides the authors, Enid Miller, Helen Popkin, Alfred In the financial sector, the general structure Telia, and Peter Tinsley, again with varying propor­ of our equations is similar to some other tions of working time. Patric Hendershott was until recently a member of the group. recent models, but our estimates of the lags Views expressed in the paper are those of its au­ are quite different. By experimenting with thors. All the colleagues listed have helped shape these views but have not edited or corrected this paper. alternative formulations applied to data Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN □ JANUARY 1968 through 1965 and testing the results against governments are endogenous in our model, data for 1966 and early 1967, we have in contrast to any other model of our ac­ tentatively concluded that lags in the de­ quaintance. The equations emphasize the mand for money are shorter than many re­ interdependence of spending and taxing de­ cent estimates, and that the transitory im­ cisions, with an important interest rate effect pact effect of open-market operations on in­ on State and local construction expenditures terest rates (as contrasted to longer-run and a smaller, but still noticeable, effect on effects) is smaller than a number of other the proportion of current expenditures fi­ models imply. The financial sector also dif­ nanced by taxes. fers from some others by including the Finally, in our consumption equations market for bank commercial loans as an we have attempted to distinguish the services integral part of the determination of money yielded by stocks of durable goods from stock and interest rates, and by including a expenditures on durable goods which are a fairly broad range of interest rates. part of consumer spending in the national In the investment sector, the plant and accounts. The sum of the services of durable equipment equations (due to Charles Bis­ goods and expenditures on nondurables and choff) are derived from the neoclassical services is the consumption variable that we theory of the business firm, but with allow­ relate to current and past income, whereas ance for lags in forming expectations, lags the allocation of the sum among its com­ between orders and shipments, technologi­ ponents depends on relative prices, existing cal change, and the possibility that substitu­ stocks, and other variables. One result of tion between capital goods and other fac­ this formulation is a small effect of interest tors of production may be feasible to a much rates on the allocation of total consumption greater degree when new equipment or plant (in our sense) and hence on consumer ex­ is being ordered than after it has been in­ penditures on durable goods. stalled. Interest rates and tax rates enter These are some of the distinguishing fea­ these equations in the way in which the tures of our model. The preliminary results theory of the firm—after modification for suggest that both monetary and fiscal poli­ the complications just listed—suggests they cies have powerful effects on the economy, should affect returns on investment projects. though monetary policy operates with a The equations for housing distinguish be­ longer lag. We also find that the response of tween builders and owners of houses on the money income to both monetary and fiscal one hand, and users of dwelling space on the policy changes is stronger than that implied other. It is in the equation describing deci­ by other large-scale econometric models. sions by the former group to change the in­ At this point in our work, however, we ventory of houses under construction that would like to emphasize the tentative nature current and recent interest rates enter with of any conclusions derived from the model. a powerful effect. Nevertheless, our model Not all of the key equations predict well, fails to predict the full extent of the decline and the number of observations outside our in housing starts in 1966, and further work sample period on which to base an evaluato try to determine whether we are under­ ton is still fairly small. In fitting the model, stating the effects of monetary policy on we have made very extensive use of recent housing is high on our future agenda. improvements in techniques for estimating Expenditures and taxes of State and local lag distributions. But with respect to simul- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 13 taneous equations difficulties, our efforts so sults of dynamic prediction tests (that is, far have been largely confined to using a predictions which generate their own lagged simultaneous estimation technique or trans­ values as they go along), and results of sim­ forming an equation to neutralize the bias ulations illustrating the behavior of the only in those cases where we felt the prob­ block. An appendix lists and briefly de­ lem was especially likely to be important. scribes the individual equations of the Putting the model together in its present blocks. The emphasis on the performance form has made us aware of some unexpected of blocks of equations means that there are system characteristics which need to be ex­ only brief references to the theoretical hy­ amined in more detail. We hope that those potheses and the detailed estimation work who use and read about the model will not underlying individual equations. Papers by simply note and store away its major find­ those who were directly responsible for indi­ ings but will suggest alternative specifica­ vidual equatioris will fill these gaps. tions that we should consider. The final section of the paper deals with * * * the three blocks combined. It presents pre­ This first report describes the perform­ diction results and simulation experiments. ance and interaction of three large blocks A few miscellaneous tax and income share of equations in the model. The first section equations are introduced for the first time deals with the financial block—supply and in this section. Still to be added is the price demand equations for financial claims and (supply equation) and labor market block, their dynamics. The second section deals on which we are presently at work. The with the fixed-investment block, covering simulations of the final section treat prices housing, plant and equipment, and the be­ and wage rates as exogenous, but since our havior of State and local governments. The price-wage sector will show a fair degree of third section deals with the consumption-in­ price and wage rigidity in the short run ventory block, and covers income shares, under conditions of moderate slack in labor imports, and Federal personal taxes as well and product markets, the simulations of the as consumption and inventory investment. final section do indicate roughly the esti­ Each of these sections includes a general mates of the effects of monetary policy which description of the block of equations, re­ are emerging from our efforts so far. I. THE FINANCIAL BLOCK The first block of equations describes the 31) is a central equation of the block. De­ behavior of financial markets, given GNP mand equations for the various uses of re­ and its components on the one hand and a serves (equations 2 through 4) depend on number of Federal Reserve policy-deter­ interest rates and other variables—most im­ mined variables on the other. In this, as in portantly, GNP and its components—with other models of financial behavior, the quan­ interest rates rising or falling in the short-run tity supplied of an open-market operations to bring quantities demanded into balance variable—for this model, unborrowed bank with the exogenous supply. reserves—is exogenous and the identity re­ As changes in interest rates affect in­ lating it to deposits, reserve requirements, vestment, the short-run interest rate effects and bank free reserves (equation 1 on page of changes in monetary policy variables are Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN □ JANUARY 1968 reduced and the effects on income increased. The various interest rates in the financial Our main goal, partly reached in Section sector are closely interrelated. A number IV of this paper, is to explain these effects of equations explain the slower-moving rates on income; but in the financial block we largely as complex distributed lags of the shall take GNP and its components as exog­ more volatile short-term rates or of the cor­ enous and consider solely the equations porate bond rate which in turn depends on dealing with supplies and demands in finan­ short-term rates. The dividend yield on com­ cial markets. mon stocks is one of these slower-moving Demand equations for demand deposits, rates; our equation does not explain a high time deposits, and free reserves—the three portion of its variance, but does connect it uses of unborrowed reserves—all include with the corporate rate and thereby relates the lagged stock of the dependent variable at least some of the variation in stock prices as one of the explanatory variables. The to developments in other financial markets. presence of a lagged stock term makes de­ The dividend yield equation also contains posits and free reserves adjust only gradually terms measuring the past rate of growth of to changes in their determinants, and there­ dividends as a proxy for expected capital fore implies large temporary jumps in in­ gains. Apart from these terms, variables re­ terest rates in order to clear markets in re­ flecting price expectations are absent from sponse to a change in unborrowed reserves the model. It is very difficult to detect such or reserve requirements. It is difficult to influences in data for this economy during understand why the adjustment in deposits the last two decades, although price expec­ and reserves implied by the introduction tation effects are clearly present in econo­ of lagged stocks should be as gradual as it mies with larger and more variable infla­ usually turns out to be in studies of the tionary spurts. demand for money or of bank behavior. In our model adjustments are somewhat DYNAMIC PREDICTIONS faster than in a number of other recent Predictions of the financial sector during models, and the implied temporary jumps 1966 and early 1967 are fairly successful. in interest rates are not so large. The Table 1 shows prediction results based on simulations described below indicate just a dynamic simulation (that is, one generat­ how large they are; the estimation and test­ ing its own lagged values as it goes along) ing procedure which led to this result is out­ of the sector starting in the third quarter lined in the appendix. of 1965. The model successfully predicts the Banks are assumed to accommodate unusually large increases and then declines short-run changes in loan demand by their in interest rates. It does not predict the abso­ business customers partly by changing their lute decline in demand deposit holdings free reserve position. Other bank earning which took place in 1966, but it does predict assets are not assumed to have this direct a very marked slowdown in their rate of effect on reserve behavior, with the result growth. Since 1966 and 1967 were outside that the composition of bank credit has a the sample period used to fit the model, short-run effect on interest rates in the these results are decidedly encouraging. model. The main influence on changes in However, the fact that we selected from bank commercial loans is business inven­ among several sets tested those equations tory investment. which performed best in 1966 and early Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 15 1 Effects of a step increase of $1 billion in unborrowed reserves, financial block Dynamic simulation, initial conditions of 1963 QI, 1967 certainly biases the prediction tests in is, using actual values of all lagged variables) our favor. It will be some time before we are much more accurate than the dynamic are able to say with confidence how well predictions in Table 1. Since the model is these equations perform outside the sample intended to be of use for evaluating alterna­ period. tive policies over several quarters, however, As in other sectors of the model, predic­ dynamic predictions are a more relevant tions based on one period simulation (that test. SIMULATION RESULTS TABLE 1 To keep the present paper to manageable DYNAMIC PREDICTIONS, FINANCIAL BLOCK size, we present only two simulation results 1965 1966 1967 for the financial sector, one tracing out the Item QHI QIV QI QH QIII QIV QI effects over time of a step increase in un­ (In per cent) borrowed reserves, and the other tracing Treasury bill rate: out the effects of a step increase in GNP. Actual 3.86 4.16 4.60 4.58 5.03 5.20 4.52 Predicted 3.40 4.24 4.51 4.98 5.21 5.13 4.48 Simulations of other monetary policy vari­ Corporate Aaa bond rate: ables in the model—required reserve ratios, Actual 4.50 4.61 4.81 5.00 5.32 5.38 5.12 Predicted 4.60 4.82 5.02 5.20 5.35 5.42 5.35 the discount rate, and the ceiling rate on Mortgage rate: Actual 5.76 5.78 5.85 6.03 6.17 6.39 6.34 Predicted 5.74 5.82 5.97 6.14 6.30 6.42 6.46 bank time deposits—will be the subject of (In billions of dollars) a future presentation. Demand deposits: The unborrowed reserve simulation, il­ Actual 128.9 131.1 133.3 132.8 132.2 131.6 133.5 Predicted 129.3 131.0 132.1 132.6 133.0 134.1 135.8 lustrated in Chart 1, shows the differences Time deposits: Actual 142.6 147.5 150.5 155.5 158.1 160.4 167.4 between (a) solution values for the model Predicted 141.7 145.8 150.2 153.7 156.9 160.4 164.7 Free A re c s tu er a v l es: -.15 -.02 -.26 -.36 -.40 -.09 + .21 beginning in 1963 QI with unborrowed re­ Predicted -.17 + .04 -.10 -.27 -.46 -.40 + .02 serves $1 billion above actual values and Note.—Financial dollar amounts are all averages of the 2 (b) solution values for the model beginning months surrounding the end of quarter; for example, fourth in 1963 QI with actual unborrowed requarter is average of December and January. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

IC FEDERAL RESERVE BULLETIN □ JANUARY 1968 serves.2 All other variables exogenous to the the bill rate relative to the discount rate, financial block are held at actual values which has not changed. Second, some of the for both sets of solution values but in both increase in reserves is required to back the sets, laf>ed values of endogenous variables increase in time deposits which takes place art generated by the model as the solutions over a long period because market rates of progress from quarter to quarter. All the interest fall relative to the time deposit rate. simulation results in the paper follow the The fact that not all banks are members of same pattern—deferences between two sets the Federal Reserve System affects the mul­ of dynamic solution values starting in 1963- tiple in the opposite direction from the free QI and bolding at actual levels all exoge­ reserve and time deposit effects. nous variables except the one which is the The second simulation of the financial subject of the simulation. block deals with a step increase of $10 bil­ The familiar whiplash effect of open-mar­ lion in GNP. It is necessary to make an ket operations on interest rates—the large assumption about how much of the increase initial impact followed by a smaller perma­ goes into inventory investment in order to nent effect—is visible in Chart 1, but in solve the commercial loan demand equation; much milder form than in a number of other the assumption we use is that $4 billion of financial models. The impact effect is due the $10 billion goes into inventory invest­ to lags in the demand for money and free ment the first quarter, $3 billion of the $10 reserves, and its mildness in Chart 1 is due billion in the second quarter, and so on to the shorter lags in the present model than down to zero in the fifth and succeeding in some others. For the corporate rate, the quarters. initial impact effect is even smaller than the The results, depicted in Chart 2, indicate longer-run effect. that, according to our model, income Demand deposits soon approach a change changes have important and fairly prompt about four times the change in unborrowed effects on financial markets. Interest rates reserves. This multiple is smaller than the on Treasury bills are driven up sharply, and reciprocal of the average reserve require­ the corporate bond rate responds after a ment against demand deposits for two rea­ short lag. The effect on demand deposits sons. First of all, free reserves absorb some builds up to nearly a billion dollars, then of the change in unborrowed reserves—a falls off as higher interest rates curb the de­ large fraction initially, and a small fraction mand for money. The effect on time deposits, even after a lag because of the decline in as before, develops much more slowly. . II. THE INVE WENT BLOCK The investment block of the model consists ing, producers’ equipment and structures, of components of final demand which are and the expenditures and taxes of State and often considered autonomous in simple local governments. All of these items are income-expenditure systems; namely, housenough sleek capacity so that the absence of a price­ B Fer the starting point ef the simulations, we wage sector weuM net greatly affect simulation re­ wanted a fairly recent quarter without abnormal pres-: suhs for the rest ef the model. The first quarter ef sares in credit or coeds market and preferably with 1W3 fills ail of these requirements. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL Dynamic simulation, initial conditions of 1963 QI. relatively insensitive to the current quarter’s span needed to replace the existing capital income and relatively sensitive to interest stock rather than in a more concentrated rates and relative prices. period. For structures, in contrast to pro­ The equations for producers’ durable ducers’ equipment, a model allowing for equipment and for nonresidential structures substitution after as well as before installa­ (both due to Charles Bischoff) allow interest tion turns out to fit the data better than a rates, tax regulations, and relative prices all putty-clay model. to affect expenditures through their effect Bischoff’s equations have other interest­ on desired capital-output ratios, in the way ing features. With respect to tax laws, they suggested by the neoclassical theory of the measure the present value of depreciation firm. The empirical fitting of these equations deductions under various laws, the invest­ is sufficiently flexible to allow for long lags ment tax credit, and even the effect of the in adjustment, certain kinds of technological 1964 Long Amendment which changed the change, and different weights for the cor­ tax treatment of equipment eligible for the porate bond rate and the dividend-price investment credit. With respect to all cost ratio in measuring the cost of capital. variables, these equations allow for an elas­ The fitting also allows for the possibility ticity of substitution different from one. For that capital goods and other factors of pro­ producers’ equipment, the central demand duction may be much more readily sub­ variable is not final expenditures but new stitutable at the time new capital is being orders. Orders are translated into expendi­ ordered than after it has been installed. For tures through a variable-weight distributed producers’ equipment, a “putty-clay” model, lag. A technique developed by Peter Tinsley in which factor substitution is possible only is used to estimate the way the lag lengthens up until the time of placing orders, turns in periods of supply bottlenecks (as measured out to fit the data better than a model in by a high ratio of unfilled orders to ex­ which capital intensity can be altered after penditures) and shortens when the bottle­ —as well as before—installation. One impli­ necks disappear. cation of the putty-clay formulation is that The housing sector of the model, which a permanent change in interest rates affects follows the work of Gordon Sparks, dis­ investment gradually over the entire time­ tinguishes between houses as providing a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN □ JANUARY 1968 stream of services for those who live in operate through the rental market, and it them and houses as profitable investments may be that imperfections in the measured for those who own them. The rental price rental price index unduly weaken the effects index clears the housing service market. of these variables. Similarly, it may be that After a lag this rental price rises with real the mortgage rate does not capture all rele­ income and population and falls with the vant dimensions of the ease or tightness of supply of houses. In another relationship, credit, especially in periods such as 1966 the same rental price is the numerator of when nonbank financial institutions experi­ the investment rate of return on houses, the enced a marked reduction in deposit inflows. denominator being the price deflator for We plan to examine both of these possibili­ houses. This relationship, involving long ties in more detail and eventually hope to lags, relates the rate of return on houses develop a more elaborate treatment of non­ to the rate of interest on mortgages. The rate bank financial intermediaries and the credit of return does not adjust by the full amount side of the housing market. of the change in the mortgage rate, implying The equations explaining the behavior of that houses and mortgages are not perfect State and local governments have as their complements. basis the constraint against borrowing on Builders are assumed to respond to in­ current account faced by these institutions. vestment demand. If this demand is high, as This constraint introduces strong interde­ measured by the investment rate of return on pendence of spending and tax decisions for houses relative to mortgage rates, builders States and localities. Tax revenues are af­ carry high levels of inventory under con­ fected by expenditure needs, and expendi­ struction, and housing starts and expendi­ tures are in turn affected by taxes. tures are high. On the other hand, if mort­ For reasons relating to the simultaneous gage rates are high, housing inventory and equations bias, the expenditure equations starts are low. have been solved directly for their reduced The housing sector estimated in this way form. Thus expenditures depend on such has interesting dynamic properties. In the variables as Federal grants-in-aid, income, long run the mortgage rate and the invest­ interest rates, population, the proportion of ment return on houses should be approxi­ the population of school age, and prices. mately in balance, and housing inventories Taxes are affected by the current expendi­ and expenditures should not be greatly tures that have to be revenue financed togeth­ affected by the level of mortgage rates. But er with income, with the proportion of reve­ in the short- and medium-run, the fact that nue-financing depending on interest rates. a change in mortgage rates is only slowly transmitted to a change in the rate of re­ DYNAMIC PREDICTIONS turn on houses means that a rise in mort­ The investment block was solved dy­ gage rates can have strong depressing effects namically for the six-quarter period from on housing expenditures. 1965 QIII to 1966 QIV. Most of the equa­ The housing sector may underestimate tions have been fit through the end of 1965, the influence of some basic variables on and since these equations are generally housing expenditures. Income, population, highly dependent on interest rates, 1966 and the stock of houses are all forced to predictions would be of special interest. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 19 The results of the dynamic predictions The experience for the other equations is are given in Table 2. Rather than present much better. Predicted expenditures for nonactual and calculated values for every vari­ residential structures are low throughout the able in the block, Table 2 only shows the period, but by the end of the period the important summary variables for each type model is performing appreciably better than of spending. Thus the equation for expendi­ in the beginning. Predicted purchases by tures on housing summarizes the perform­ State and local governments are extremely ance of the entire housing market, and so accurate throughout the period, as are even forth. the predictions of the entire budget surplus To review the results briefly, the housing which includes errors for all purchase, tax, sector predicts actual housing expenditures and transfer equations. well until 1966 QIII, when the decline in The last item of the table summarizes the actual expenditures was much greater than performance of the investment block, by list­ that shown by our model. Our predictions ing the actual and predicted values for ex­ turn down at the right point, but they do not penditures on housing, producers’ durables, fall nearly enough. Possibly a model allow­ and structures, which make up gross private ing for nonprice credit rationing would im­ domestic fixed investment. Because the er­ prove the housing predictions for late 1966. rors in housing and producers’ durables off­ Actual expenditures for producers’ dura­ set each other, the total gross investment bles did not turn down until early 1967; but error is relatively small, averaging somewhat here, in contrast to the housing equations, less than $1.5 billion. our predictions understate expenditures by SIMULATIONS OF BEHAVIOR OF BLOCK turning down two quarters too soon. Two basic simulation runs for the invest­ TABLE 2 ment block trace out the effects of changes DYNAMIC PREDICTIONS, INVESTMENT BLOCK in income and the effects of changes in inter­ (In billions of dollars) est rates. As in the financial block, simula­ tion results are differences between a dy­ 1965 1966 Item QIII QIV QI QU QIII QIV namic solution using either higher-thanactual income or higher-than-actual interest Residential construction: Actual 26.4 26.2 26.5 25.3 23.2 20.4 rates and a dynamic solution using actual Predicted 26.5 26.4 26.0 25.4 24.7 23.8 Producers’ durable income and interest rates, both solutions equipment: Actual 46.8 48.3 50.0 51.2 53.1 55.1 starting in 1963 QI. The income simulation Predicted 46.6 48.8 50.6 51.0 50,8 50.8 Nonresidential con­ struction : inserted a $10 billion step increase in GNP Actual 25.1 27.3 28.3 27.5 28.2 27.7 Predicted 24.6 25.2 25.8 26.5 27.0 27,3 —GNP was put $10 billion above its actual State and local govern­ ment expenditures: level in each quarter—with appropriate re­ Actual 70.4 72.5 74.3 76.2 78.1 80.2 Surp P lu r s e d o i f c t S e t d ate and 70.5 72.3 74.5 76.3 78.0 80.0 sponses in other income variables but no local governments: Actual 1.5 1.1 2.4 2.9 3.3 3.0 change from actual interest rates; while the Predicted 2.5 2.7 3.2 3.2 3.3 3.2 Total residential and interest-rate simulation inserted a percentage nonresidential con­ struction and pro­ point increase in the corporate bond rate ducers’ durable equipment Actual 98.3 101.8 104.8 104.0 104.5 103.2 with appropriate responses in other interest Predicted 97.7 100.4 102.4 102.9 102.5 101.9 rates but no departure from actual income. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN □ JANUARY 1968 3 | Effects of a step increase in GNP of $10 billion, investment block / • ... . . EXPENDITURES IN BILLIONS OF DOLLARS _ HOUSING PLUS EQUIPMENT 3 .HOUSING _, _ PRODUCERS' DURABLE PLUS NONRES. STRUCTURES EQUIPMENT _ NONRES. STRUCTURES _3 _ STATE AND LOCAL GOVT STATE AND LOCAL GOVT EXPEND. LESS PERS. TAXES -1 llllllll Dynamic simulation, initial conditions of 1963 QI. The results for the 12 quarters after the Yet it is interesting to note that in this case, change are presented in Charts 3 and 4. The as opposed to equipment, the lag patterns housing sector behaves very much as de­ are similar for income and interest rates. scribed above. There is almost no effect of The purchases made by State and local income on housing expenditures, attribu­ governments respond fairly rapidly both to table to the fact that the income elasticity of income and to interest rates. In the income the rent index is very low. Yet there is a very simulation the budget surplus increases be­ sharp effect of interest rates. This effect cause revenues increase even more than pur­ reaches its peak of $2.8 billion six quarters chases. But for the revenue items that mat­ after the interest rate change, and then ter—excluding the effect on indirect taxes, gradually recedes to zero as the mortgage which do not feed back to the model to a rate and the rate of return on houses come significant extent—the response is slightly into balance. less than the expenditure response, such that Expenditures for producers’ durables also States and localities are a slight destabilizing behave as the putty-clay model implies. force in the determination of aggregate de­ They respond almost immediately to income mand as long as interest rates are held and then recede to zero as the desired constant. capital-output ratio is restored. But because In the interest rate simulation the initial of the fixed-factor proportions of installed bulge in the State and local expenditure equipment, the response to interest rates effect is due to a large postponement effect shows a very gradual decline which still has for wages and salaries, and the long-run not reached its peak after 3 years. effect is due to the delayed response of con­ Lags in the structures equation are very struction expenditures—which behave in a long. The underlying model implies that at manner similar to producers’ structures. The some point the response either to income or budget surplus increases more than expend­ interest rates will reach a peak, and then fall itures decrease in this simulation because towards zero. As Charts 3 and 4 indicate, the high interest rates result in decreased bor­ expenditure response still has not reached rowing or in increased tax financing of the its maximum 3 years after the initial change. expenditures already being made. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 21 Effects of a step increase in the corporate bond rate of 1 per cent, investment block 6 6 Dynamic simulation, initial conditions of 1963 QI. III. THE CONSUMPTION-INVENTORY BLOCK The third block of equations describes the current and past income. This concept of behavior of consumption, inventory invest­ consumption shows smaller variations than ment, imports, personal income, and taxes the national accounts total since an addi­ and includes the identity adding up the com­ tional dollar spent on consumer durables ponents of GNP. These variables are all tied raises our consumption by less than a dollar very closely to the level of, or changes in, now and by a positive amount in subse­ current income, and would be considered quent quarters, rather than by a full dollar endogenous in even the simplest income­ now and nothing in subsequent quarters. expenditure system. The multiplier sector One implication of this view of consump­ would be an appropriate title for this block. tion is that expenditures on durable goods The multiplier implicit in the present are quite sensitive to changes in income, be­ model is more complicated than the simple cause large changes in expenditures are textbook concept. One important reason is necessary in order to keep our version of that we distinguish between the national consumption in its desired relationship with accounts version of consumption, which in­ income. cludes expenditures on consumer durables, The allocation of consumption between and our own version, which instead includes nondurables and services on the one hand the flow of services—as best we can esti­ and the services of durable goods on the mate it—from these durables. Following other depends on relative prices, existing many other students of consumption,8 we stocks of durables, recent income changes, assume our concept has a stable relation to and to a minor extent interest rates. These forces have all been constrained so that if • For example, Milton Friedman, A Theory of the Consumption Function (Princeton University Press, they increase one component of consump­ 1957); and Albert Ando, and Franco Modigliani, tion, they decrease one or more others by "The ‘Life Cycle’ Hypothesis of Saving,” American Economic Review, March 1963. an exactly offsetting amount. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

22 FEDERAL RESERVE BULLETIN □ JANUARY 1968 A second important reason for a com­ enous transfer payments to current and past plex multiplier is the inventory investment GNP. Personal income taxes on a liability equation. Our model allows the different basis depend on personal income, exemp­ components of final demand to affect inven­ tions, and the average tax rate in equations tories by different amounts—implying dif­ based on the work of Ando and Brown. As ferent inventory-sales ratios—and with dif­ they recommend, the model uses a tax ac­ ferent lags—implying different periods of crual disposable income concept rather than production or different ways of forming the cash version used in the national ac­ sales expectations. One prominent example counts.5 of the differing lags which has received much attention lately is defense spending;4 DYNAMIC PREDICTIONS in our equation defense spending has an Dynamic predictions for the consumption­ effect on inventories before the final ex­ inventory block beginning in 1965 QIII are penditures are recorded in the national ac­ quite successful. The main exogenous vari­ counts. Our equation also features a faster ables on which the predictions depend are speed of adjustment, and therefore a larger fixed investment, exports, and various re­ accelerator effect, than most other models. ceipts and expenditures of Federal, State, The rest of the block is fairly standard. In and local governments. Given actual values the absence of an elaborate treatment of in­ of these variables, the model makes only come distribution through the price and small errors in predicting the course of wage block, we have a simple equation GNP. which relates personal income net of exog- The principal change in the behavior of GNP during the period was the slowdown ‘ See Murray Weidenbaum, “The Economic Impact in quarterly changes starting in the second of the Government Spending Process,” The University of Houston Business Review, Spring 1961. quarter of 1966. This the model captures at precisely the correct time. A secondary change in the behavior of GNP was the rise TABLE 3 in the fourth quarter of 1966 due to ex­ DYNAMIC PREDICTIONS, CONSUMPTION-INVENTORY BLOCK traordinarily high levels of inventory invest­ (In billions of dollars) ment. This change the model does not cap­ ture, greatly understating inventory invest­ 1965 1966 ment at the end of 1966. Item QIII QIV QI QII QIII QIV The understatement of inventory invest­ ment in the second and fourth quarters of GNP level: Actual 690.0 708.4 725.9 736.7 748,8 762.1 Predicted 691.8 712.8 729.8 739.5 752.1 763.3 1966 is offset in part by an overstatement of GNP changes: Actual 14.6 18.4 17.5 10.8 12.1 13.3 consumption expenditures. In part, this off­ Predicted 16.4 21.0 17.1 9.6 12.7 11.1 Disposable income: set is a lucky accident. In part, however, it Actual 479.2 489.1 498.1 505.5 514.9 524.5 Predicted 479.0 489.3 499.7 506.9 516.1 525.1 is what we would expect from examining Consumer expenditures: the inventory equation of the model. Con­ Actual 436.4 447.8 458.2 461.6 470.1 473.8 Predicted 441.6 451.4 461.5 468.1 476.6 483.6 sumption expenditures in the current quarter Inventory investment: Actual 7.9 8.7 9.6 14.4 12.0 19.0 Predicted 5.4 10.1 10.8 10.8 7.6 9.3 Imports: * Albert Ando and E. Cary Brown, “The Effects of Actual 32.9 34.4 36.0 37.1 39.0 39.7 Predicted 33.6 35.1 36.5 37.3 38.0 38.6 the Personal Income Tax Reduction of 1964 on Con­ sumption,” to be published. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 23 have an involuntary, negative effect on in­ ing by 37.3 per cent of the income change in ventory investment so that an error in pre­ the first quarter, then rising by smaller in­ dicting current consumption leads to a par­ crements, and after 3 years reaching 94 per tially offsetting error in predicting inventory cent of the income change. A portion of this investment in the same quarter. increased consumption goes into the serv­ ices of durable goods. In order for the POLICY SIMULATIONS services of durable goods to rise, it is neces­ Simulations which are most helpful in illus­ sary for expenditures on durable goods to trating the dynamics of this block of equa­ rise by an accelerated amount at first, then tions are those showing how a maintained as stocks rise, to fall back gradually toward increase in government or fixed investment the new level of consumption. Total con­ spending, or a change in tax rates or trans­ sumer expenditures therefore increase ini­ fer payments, multiply into changes in GNP. tially by 67.5 per cent of the change in dis­ Before those simulations of the whole block, posable income, continue rising until they however, it may be helpful to illustrate the actually exceed 100 per cent of the income behavior of the consumption equations change for a few quarters, and then decline alone in response to a step increase in towards 94 per cent. disposable income. Turning now to the complete consump­ Table 4 below traces out the pattern of tion-inventory block, we trace out first the consumption on the one hand and con­ effects of a step increase of two percentage sumer expenditures on the other in response points in the aggregate Federal personal in­ to a maintained increase of $1 billion in dis­ come tax rate. As in the simulations of the posable income. Total consumption follows financial and investment blocks, all variables the behavior of equation 11 (page 38), ris- exogenous to this sector except the tax rate were put at their actual values during 1963­ 64 while the tax rate was raised by 0.02 TABLE 4 above its actual value during each quarter. EFFECTS OF A $1 BILLION STEP INCREASE An increase of two percentage points is IN DISPOSABLE INCOME roughly a 10 per cent increase, since the (In billions of dollars) actual rate was between 0.20 and 0.23 dur­ ing the period. It represented a little over $4 Consumer Quarter Consumption expenditures billion dollars in tax revenue at actual levels of income during the period. But that dollar 1 .37 .68 2 .46 .75 amount, like many of the dollar amounts in 3 .54 .82 these simulations, depends on the general 4 .61 .88 5 .67 .93 size of the economy during the simulation 6 .73 .97 7 .78 1.01 period. 8 .83 1.04 The GNP effects of the policy change are 9 .86 1.05 10 .89 1.06 shown in Chart 5 in constant dollars. They 11 .92 1.07 12 .93 1.07 begin with two big steps and continue with 13 .94 1.06 six much smaller ones. Using $4.15 billion 14 .94 1.04 15 .94 1.02 as the initial revenue value of the tax change, 16 .94 .99 we can derive GNP multipliers which begin Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN □ JANUARY 1968 — I Effects of a step increase in the personal tax rate of .02, 3 | consumption-inventory block Dynamic simulation, Initial conditions of 1963 QI. at 0.7 and 1.4 in the first two quarters, to the results of the tax rate change simu­ and then rise slowly to 2.4 after eight lation. quarters. Disposable income is affected by The GNP effects of the rise in defense more than GNP, with the margin between spending begin before the rise is actually the two declining over time. Most of the recorded as a final expenditure, since inven­ change in GNP is due to changes in the com­ tory investment depends in part on next ponents of consumer expenditures; import quarter’s defense expenditures. This initial and inventory effects are quite small. Inven­ effect is a small one, however, amounting to tory investment is increased slightly in the less than half of the rise in defense spend­ first quarter, reflecting unanticipated de­ ing. Large effects begin in quarter 1 and clines in consumer expenditures; in the sec­ increase by generally declining amounts ond quarter it is decreased by a somewhat thereafter. GNP multipliers are 1.5 in quar­ greater amount, reflecting the accelerator ter 1, 1.7 in quarter 2, and small increases effects of the decline in consumer spending; thereafter up to 2.4 in quarter 8. Effects on and thereafter it is decreased by declining consumption are less important in this simu­ amounts. lation than they were in the tax change, for The second policy change we trace the initial shock to the system only gradu­ through this block is a maintained increase ally spreads to disposable income in this of $5 billion in defense spending—that is, a simulation; whereas it has its full initial im­ level of defense spending $5 billion above pact on disposable income in the tax change actual levels starting in the first quarter of case. Import and inventory effects again are 1963, with other variables exogenous to small. this sector held at actual levels. Chart 6 Comparison of the tax and the defense sets out the results. Since the $5 billion is in expenditure multipliers brings out some current prices, results for this simulation are interesting characteristics of this block. In also presented in current dollars, in contrast the long run, the expenditure multiplier is Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 25 I Effects ef • step increase fa defense expenditures ef $5 Mitton, I cen»mnptton-in»entary Stock BILLIONS OF CURRENT DOLLARS CONSUMER CONSUMER NONFARM IMPORTS EXPENDITURES: EXPENDITURES: INVENTORY AUTOS AND PARTS _ ~ G O O TH O E D R S DURABLE — .5 — INVESTMENT “ ,5 ~ , - I I I I I I 11 o . o 1 1 1,11 lias 11 1,1X1o OS4II 02441 Q9#0t 6 2 4 4 I Dynamic simulation, initial conditions of 1963 QI. slightly largei than the multiplier of a lump­ ceeding one in some quarters. A second rea­ sum tax change because of the leakage into son is that the tax simulation is a simulation personal saving. In the eight-quarter simula­ of a rate change, not a lump-sum change, tions depicted in Charts 5 and 6, however, and therefore has effects which grow as the the expenditure multiplier is larger than the economy grows. A final reason is that the tax multiplier only in the first few quarters, inventory effects of a change in exogenous and slightly smaller thereafter. One reason spending are bunched around the time of the for this similarity is that in the medium run expenditure, whereas the inventory effects of the response of consumer spending to a tax change are spread over a long period changes in income is quite large, even ex­ when consumer expenditures are changing. IV. THE THREE BLOCKS COMBINED We now combine the three blocks already will remove prices and wages from the exog­ described—the financial block, the invest­ enous list. ment block, and the consumption-inventory The simulations in this section illustrate block—into a single group of simultaneous how the first three blocks interact. We have equations. The principal exogenous vari­ run some simulations (not shown below) in­ ables which ultimately drive the system are: cluding preliminary price and labor market population and other demographic vari­ equations,® which suggest that except in con­ ables; Federal Government expenditures and ditions of high resource utilization, the ma­ tax rates; monetary policy variables; exports; jor results for the three blocks will continue and wages and prices (except for rents and to hold for the entire model. the price of houses, which are explained in “ Some of these equations are described in Alfred the investment block). A fourth block con­ Telia, and Peter Tinsley, “The Labor Market and Potential Output,” Proceedings of the American taining price (supply) equations and labor Statistical Association, December 1967 meetings, to market equations, now under development, be published. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN □ JANUARY 1968 TABLE 5 DYNAMIC PREDICTIONS, THREE BLOCKS COMBINED Item 1965 QIII 1963 QIV 1966 QI 1966 QII 1966 QIII 1966QIV (In billionsof dollars) GNP level: Actual 690.0 708.4 725.9 736.7 748.8 762.1 Calculated 690.7 709.4 725.4 736.1 745.6 753.1 GNP changes: Actual 14.6 18.4 17.5 10.8 12.1 13.3 Calculated 15.3 18.7 16.0 10.7 9.5 7.4 Consumer expenditures: Actual 436.4 447.8 458.2 461.6 470.1 473.8 Calculated 441.1 450.3 460.1 466.7 473.8 479.7 Residential construction: Actual 26.4 26.2 26.5 25.3 23.2 20.4 Calculated 26.6 26.3 25.7 25.1 24.2 23.3 Producers’ equipment and nonresidential structures: Actual 71.9 75.8 78.3 78.7 81.3 82.8 Calculated 71.2 74.2 76.3 77.1 76.9 76.4 Inventory investment: Actual 7.9 8.7 9.6 14.4 12.0 19.0 Calculated 5.4 9.8 10.4 10.6 7.0 6.6 Demand deposits: Actual 128.9 131.1 133.3 132.8 132.2 131.6 Calculated 129.1 130.8 132.2 132.3 132.5 132.8 (In per cent) Corporate bond yield: Actual 4.50 4.61 4.81 5.00 5.32 5.38 Calculated 4.65 4.84 4.95 5.29 5.39 5.51 Treasury bill rate: Actual 3.86 4.16 4.60 4.58 5.03 5.20 Calculated 3.60 4.26 4.22 5.42 5.16 5.47 DYNAMIC PREDICTIONS deposit predictions fail to catch the absolute Dynamic predictions starting in 1965 QII decline in deposits during 1966, but they do for the three blocks combined are not as show a marked slowdown in their rate of good as predictions for individual blocks, growth. but they are nevertheless decidedly encour­ SIMULATION RESULTS aging. For GNP, as Table 5 shows, the model predicts the marked slowdown in The simulation experiments of this section growth which begins in 1966 QII. It fails trace out the effects of three policy changes to predict the slight pickup in growth in the already investigated for individual blocks— fourth quarter, but that pickup was short­ namely, a $1 billion step increase in un­ lived, and it is likely that the model would borrowed reserves, a $5 billion step increase be on track again in 1967 QI. in defense spending, and a 0.02 (10 per A rise in interest rates of something like cent) increase in the personal tax rate. In the right magnitude is predicted, though the near future we plan to simulate the ef­ there is a large error in the bill rate predic­ fects of a much wider range of government tion for 1966 QII. Whether the three blocks policy variables. As before, the results repre­ together predict the decline in interest rates sent differences between a dynamic solution in 1967 QI, as the financial block alone did, including the policy change and one exclud­ we will not know until we finish collecting ing the policy change, with both solutions 1967 data for all three blocks. The demand starting in 1963 QI. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 27 _ I Effects of a step Increase of $1 billion in unborrowed reserves, ' I three blocks combined Dynamic simulation, initial conditions of 1963 QI. For the unborrowed reserve simulation pend on the delayed response of consump­ (Chart 7), effects on fixed investment (partly tion. Also it remains true that the medium­ due to lower interest rates and partly due to term (2- to 3-year) multiplier for income higher income) build up gradually to a little taxes is higher than that for defense spend­ more than $3 billion. Effects on GNP are ing. This result follows from the fact that small in the first few quarters; they accel­ the medium-term consumer expenditure pro­ erate as the increase in fixed investment has pensity is greater than one (see Section III), its multiplier influence, and then decelerate and from the fact that the income tax multi­ as fixed investment reaches a peak. At the plier has not yet entered the reversal range end of the 3 years GNP has increased by that occurs when actual stocks of capital more than $11 billion, which implies a and consumer durables approach their tar­ somewhat higher multiplier for unborrowed get levels. reserves than is shown by most other models It is interesting to observe the behavior (see Table 6). This simulation says, then, of fixed investment in these simulations. In that monetary policy is ultimately quite both cases the income change induces more powerful but that the lags are long. To that investment than the stabilizing interest rate extent, these tentative results suggest that change shuts off, and fixed investment rein­ monetary policy is difficult to use as a sta­ forces the multiplier action. This property bilization device. The powerful impact of a contradicts the argument that the induced policy change will not come into play until rise in interest rates will restrict fixed in­ one year hence, when it is inevitably more vestment enough to offset part of the initial difficult to predict the needs of stabilization expenditure change. policy The simulations indicate that fiscal policy Both fiscal policy simulations tell different suffers less from the lag problems that plague stories. As in the consumption-inventory monetary policy. Both multipliers, especially block, changes in defense spending operate that for purchases, approach their maximum faster than income tax changes, which de­ levels rapidly, and are responsible for strong Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Dynamic simulation, initial conditions of 1963 QI. effects on GNP less than half a year after the COMPARISON OF MULTIPLIERS OF ALTERNATIVE MODELS policy change. The lag problems that may A brief comparison of our 3-year multipliers interfere with the effectiveness of fiscal with those estimated by a few other models measures are lags between recognition of the are given in Table 6. need for action and actual changes in tax The table indicates that all of our multi­ rates or expenditures, not lags in the eco­ pliers are higher than those for other models. nomy’s response to the policy changes. The difference is due primarily to the fact TABLE 6 that our version of consumption gives rise to a much higher medium-run consumer COMPARISON OF 3-YEAR MULTIPLIERS OF DIFFERENT MODELS propensity to spend than is shown by other models. The same factor accounts for our (Ratios) higher personal tax multiplier.7 Un- Model borrowed Defense Personal 7 Our multiple tax multiplier seems to be unusually reserves spending tax cut high relative to our expenditure multiplier in Table 5. Although this result is partly explained by the greaterthan-one medium-run expenditure propensity men­ Federal Reserve— tioned above, the major share of the explanation lies MIT model 11.2 3.2 4.2 in the time period chosen as the basis of the multiplier Brookings model1 8.2 2.7 1.2 calculation. Had we presented 2-year results, the ex­ Wharton School model2 2.9 2.9 2.4 penditure and tax multipliers would have been quite Michigan model3 n.a. 2.5 1.7 similar. The same is true of longer-run 5- to 7-year multipliers. It is only in the 3- and 4-year range, when the expenditure multiplier has begun to decline from 1 Gary Fromm and Paul Taubman, Policy Simulations its maximum value while the tax multiplier has not, with an Econometric Model, Chapter II, forthcoming. that the unusual result of Table 5 obtains. 2 Michael K. Evans and Lawrence R. Klein, The Whar­ We should like to emphasize here also that these ton Econometric Forecasting Model, University of Penn­ findings are preliminary. It may be that further ex­ sylvania Study in Quantitative Economics No. 2, 1967. perimentation with consumption will lead to different 3 Unpublished results of the University of Michigan functional forms, statistical estimates, and multiplier model supplied by Daniel B. Suits. calculations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 29 g I Effects of a step increase in defense expenditures of $5 billion, three blocks combined V. CONCLUSION It is apparent from the limited number of best specification of the way in which mone­ policy simulations conducted that our model tary policy affects the economy. They are not finds monetary policy to be quite powerful caused by simple expedients such as throw­ —much more so than is found in other ing in the money supply whenever nothing econometric models. Future refinements of else works. Although we emphasize that our our model, of which an examination of the conclusions are tentative and caution against financial intermediary-credit rationing proc­ using them as a basis for generalizations ess in the mortgage market is a basic one, about stabilization policy, we think it signifi­ could increase the relative power that we cant that a more intensive examination of attribute to monetary policy and might monetary policy than is usual in econometric shorten the lags. models finds monetary factors to be more These findings follow strictly from our important than they are usually found to be. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN □ JANUARY 1968 APPENDIX Financial Block The central supply identity of the financial block able and once with interest rates as dependent.’ (equation 1) relates unborrowed reserves, taken There are reasons for believing that coefficients as exogenous, to three endogenous uses of re­ estimated in these alternative ways should bracket serves—reserves against private demand deposits, “true” coefficients with respect to these difficulties. reserves against time deposits, and free reserves A number of alternative combinations of quantity —and one exogenous use—Federal Government and interest rate versions of the equations were demand deposits. The open-market variable used to predict the extremely large movements which the Federal Reserve System controls to the in financial variables during 1966 and early 1967 last dollar is not unborrowed reserves but its own —the equations were fit through 1965. The re­ portfolio of government securities. Yet changes sults were not a clear-cut victory for any one in the two are closely related, and there is no set of estimates; the best combination on many doubt that the System can, and often does, con­ grounds, and the one used in this presentation, sciously offset movements in the other elements in is the quantity version of the free reserves and its balance sheet so as to influence unborrowed time deposit equations and the interest-rate version reserves. of the demand deposit equation (equation 3: it The next three equations (equations 2 to 4) has been solved for the quantity for listing here). explain demands for the three endogenous com­ Equation 5 explains business borrowing in the ponents of unborrowed reserves. Bank holdings form of commercial loans. The public’s demand of free reserves—excess reserves minus borrowing for currency is not an integral part of the model from the Federal Reserve System—are thought of as it now stands; interest rates and consumer ex­ as an inventory held because of uncertainty penditures affect currency holdings, but there is about changes in deposits and in loans to regular no feedback from currency. There would be a customers which affect banks’ reserve positions. feedback if currency plus unborrowed reserves The target amount of free reserves depends on were the open-market variable of the model; and the Treasury bill rate, representing earnings fore­ a currency equation is included in the model gone on other assets, and the discount rate, rep­ (equation 6) in order to make possible simula­ resenting the cost of raising reserves. Actual tion experiments with this alternative policy vari­ able. levels of free reserves depend not only on target Interest rates appear in all of the equations 2 amounts but also on changes in the balance-sheet through 6, and it is increases or declines in these items against which free reserves are a buffer rates which, in the short run, make commercial stock; that is, on movements in deposits or—for banks and the public willing to hold exactly those the banking system as a whole—unborrowed re­ quantities of deposits and free reserves which serves and on movements in commercial loans. use up the unborrowed reserves supplied by the Demands for demand deposits and time deposits Federal Reserve. (equations 3 and 4) depend on GNP and interest The remaining equations of the model-—equa­ rates, variables which are suggested by either an tions 7 through 12—describe interrelations among inventory or a portfolio theory approach to the various interest rates. Equation 7 is a term-struc­ public’s financial behavior. ture relationship based on the work of Modigliani Several varieties of statistical difficulty compli­ and Sutch, and derived ultimately from the ex­ cate the estimation of equations 2 to 4. There are pectations hypothesis combined with the hypothe­ simultaneous equations problems, bias problems sis that expectations about interest rates are a combination of extrapolative elements (with rein the coefficient of the lagged dependent variable, and, in the case of the time deposit yield, measure­ 'In the interest rate versions, dependent variables were: ment error problems. In view of these difficulties, an average of RCp and RTB in the demand deposit equa­ the three equations were each estimated in two tion, Rtd in the time deposit equation, and the differen­ ways, once with quantities as the dependent vari­ tial Rts-Rdis in the free reserve equation. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 31 spect to recent changes) and regressive elements 7. Term structure (with respect to longer-term changes). Equation 18 Rc = 1.1225 + .337 Rcp + S w( RCp , 8 is a supply equation for time deposits, relating i = l " the yield at which banks are willing to accept time deposits to other rates, portfolio composi­ W1 = -.024 W7 = .064 Wu = .023 tion, and the exogenous ceiling rates set by the W w a 3 = = . . 0 04 1 1 5 W Wo 8 = = . . 0 0 5 5 9 2 w W l i t s = = . . 0 0 1 1 8 5 Sw< = .587 regulatory authorities. Equations 9, 10, and 11 W4 = .057 Wio = .044 Wio = .012 are simply empirical relationships among interest W5 = .065 W11 = .036 W17 = .009 We = .067 Wi2 = .029 Wis = -005 rates. Experiments with a full-scale mortgage mar­ ket in place of equation 11 were not far enough 8. Supply of time deposits along to use in the present version of the model, Rtd- -.362 + .390(5^^) but we are continuing work on an expanded mort­ gage-housing treatment. + ,80° {dd + dt)^ + 390 (dd + dt) The final equation of the financial sector deals with the yield on common stocks, which is re­ + .008 (Rc + Rc_^ + .463 Rmax lated to corporate bond rates and past rates of growth of dividends, along lines suggested by — .360 Rmax^ + .869 Rtd^ Modigliani and Miller. Stock market yields are thus endogenous to our model, responding to 9. Commercial paper rate other long-term rates of interest with coefficients Rcp - .5775 + .7234 RTB + .3178 Rtb_, - .2469 Ducd which sum to a little less than one. The standard error of this equation is quite large, indicating 10. Commercial loan rate that much of the quarter-to-quarter change in Rcl - .448 Rc + .160 Rcp + .341 Rcl^ + .762 stock market yields is unexplained by the variables 11. Mortgage rate in our equation. However, the equation does in­ dicate a strong link to other financial markets. &Rm — .078 bRcp + .362 ^Rc^ + .417 ^Rm 12. Stock market yield EQUATIONS 4 14 " ^YcD_^ Rd = S w<Rc ■ - 2 w',- + .9452 H^ i=0 " i = 4 YCD_f^ 1. Reserve identity RU = (RF + .074 Si - .005 & + .051 Ss - .121 &) Wo = .0294 w'4 « .49 w'10 = .89 W1 = .1608 w'5 = .82 w'h = .79 + Reqd • kn • DD + Reqd ■ DDom W2 = .2235 w'e = 1.03 w\i = .52 + Reqt • kr • DT + egy w3 = .2176 w'i = 1.12 w'13 = .32 W4 = .1431 w's = 1.11 w\t = .14 2. Demand for free reserves 2w,= .7744 w't = 1.03 Sw\ = 8.26 &RF = -.232 + .081 Si + .025 S* + .197 St + .463 (ARU + REEL) + .180 Rdis - .127 Rtb - .078 ACL - .289 RF^ GLOSSARY 3. Demand for demand deposits (In Rcp + In Rtd * indicates exogenous to financial block. dependent variable) In DD-----.3453 - .0718 In Rcp - .0718 In Rtd Interest rates, in per cent + .3333 InY + .6667 In DD-i + .840 U_! Rcl = bank business loans Rc = Aaa seasoned corporate bonds 4. Demand for time deposits (Moody’s) DT/Y = .01386 + .00941 RTD - .00158 Rtb - .00348 Rc + .8953 (DT/Y^ Rcp = 4-6 month commercial paper - .1477 (AY/K-j) Rd = dividend yield on common stock 5. Demand for commercial loans (Moody’s) ACL = .1167 Ei - .450 ARcl + .544 ^CL^ * Rdis = discount rate, N. Y. Federal Reserve Bank 6. Demand for currency In CURR ------.3382 - .035 In Rtd + .157 In CP Rm = new conventional mortgages, FHLBB + .843 In CURR^ + .758 u_i Rtb = 3-month Treasury bills Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

32 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Rtd = bank time and savings deposits (incl. *Y = GNP (annual rates) CD’s) * Ducd = CD dummy (1 after 1962) * Rmax = ceiling rate on bank time deposits Ratios (between zero and one) Amounts, in billions of dollars (seasonally adjusted, *kD = proportion of demand deposits at mem­ except RF and RREL) ber banks; seasonally adjusted CL = bank commercial loans * kT = proportion of time deposits at member * Cp = consumer expenditures (annual rates) banks; seasonally adjusted CURR = currency * Rsqd = weighted average reserve requirement DD = demand deposits ratio against member bank demand de­ * DDgm = govt, demand deposits at member banks posits * epp = error in reserve identity (statistical * Rbqt = reserve requirement ratio against mem­ discrepancy) ber bank time deposits * Ei = inventory investment (annual rates) Notes—1L-i in this and the following blocks indicates that the variables were transformed into the semi-first- RF = free reserves, not seasonally adjusted difference form * RREL = reserves released through reserve re­ a:, — bxi-i quirement changes before estimation, where b is the coefficient of U(_i * RU = unborrowed reserves St through St are seasonal dummy variables. Financial dollar amounts are all averages of the 2 months DT = time deposits surrounding end of quarter; for example, fourth quarter is * Ycd = dividend payments (annual rates) average of December and January. Investment Block Equations 3 and 4 give expressions for the rate of The important equations of the business fixed in­ return at which future earnings should be dis­ vestment sector are 9 and 14, which explain re­ counted, both for producers’ durables and for spectively the new orders of producers’ durable structures, These rates of return are functions of equipment and the actual purchases of structures. the dividend-price ratio, the industrial bond yield, Both of these equations represent desired capital corporate tax rates, and the desired long-run debt­ in real terms as a distributed lag function of the equity ratio. The parameters are estimated in non­ product of real output and the desired capital-out­ linear fashion together with the investment func­ put ratio. For structures, the dynamics of this lag tions. are complicated by the presence of the lagged Equations 5 and 6 use these rates of return to capital stock (equation 15). For producers’ dura­ derive expressions for the imputed rent which must bles, the dynamics are even further complicated by be earned by a new machine to make its purchase a separate distributed lag between orders and ex­ worthwhile. Along with rates of return, the im­ penditures (equation 10). This lag depends on the plicit rental also depends on the price of capital orders-shipments ratio, with supply bottlenecks, as equipment, the rate of depreciation, and various represented by a high ratio, postponing the lag. features of the tax law—the investment credit, the The orders-shipments relationships are described present value of depreciation deductions under in equations 11 to 13. various laws, and tax rates. For the housing sector, equation 19 explains the The desired capital-output ratios for equipment rental price. This price then determines the price and structures are given in equations 7 and 8. of houses by equation 20. Equation 20 imposes the Their ratios depend on the price of output, the requirement that in the long run the net return on imputed rent, and a trend factor reflecting tech­ investment in houses is brought into equilibrium nological change. The exponents of the relative with mortgage rates. There should be a variable price terms are the elasticities of substitution be­ approximating capital gains in the net rate of re­ tween factors, which are again estimated in a non­ turn equation, but we have not yet been able to linear fashion. find one which works well. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 33 Equation 17 explains housing inventory under Pps (-01 Rs + at) (1 — M») 6. Pqs = construction. This equation assumes that builders 1 - t„ are influenced only by rates of return on houses Identities defining equilibrium capital-output ratio and mortgage rates. As mentioned in the text, it 7 yB — I J e .00081 (tlmB-M.S) may not give enough importance to other variables. ,<n The remaining equations close up the housing e - .oo»8 <tlm« -«.»> sector. Equation 16 defines the variable we use to approximate the inventory of (unsold) houses un­ Demands for orders and expenditures, producers' durable equipment der construction. The weights in the equation are based on construction and sales statistics, along 9. Opp = 2 1 W< Ti j-j Yb^ + ? 17 ,- w -- 't - - V - b ,Yb , with an assumption about the effect on housing p™ i = 0 Pb^ 1=1 Rb_{ starts of a sold but unstarted house. The equation is used to solve for real housing starts in value W W1 o “ =8 . . 0 0 5 4 0 2 2 2 w w' ' 2 i = — - - . .0 0 4 4 0 9 1 5 terms. Equation 18 then gives expenditures as a W2 “ .0339 w'3 s= -.0310 distributed lag on starts, with a constant and time w3 = .0256 W'< s -.0223 W4 = .0174 w't, = -.0141 trend to pick up the coverage difference (additions Wj — .0095 w'e = -.0064 and alterations). Equation 21 uses expenditures to We = .0022 wS = .0006 calculate the real stock of housing and feedback w w 7 8 = ~ - - . . 0 0 0 1 4 0 5 5 W w' f g 9 s Q . .0 0 1 0 2 6 0 8 into determination of the rent index. W» = -.0154 w'10 = .0163 Equations 24 to 27 explain the purchases and Wio = -.0192 w'u = .0194 transfer payments of State and local governments. w W l i 2 l = = - - . . 0 0 2 2 2 1 8 7 w W '1 'u 2 s a = s . . 0 0 2 2 1 1 7 2 These values, along with equation 31 and identity WW - -.0222 w'u as .0208 23, are the total net expenditures which go into WH = -.0198 w'u — .0182 Wifi = -.0154 w'u s= .0140 tax equations 28 to 30 and 32. Of this total, all Wie = -.0088 w'n ss .0079 but construction needs to be revenue-financed, and 2w< = .0207 Sw'i5= -.0045 the construction ratios in the tax equations are a way of adjusting for this difference. It would have io.^4 < been difficult to proceed otherwise because grants- j = o Ppp)-t in-aid would have had to be allocated between con­ 5 struction and all other. The income variable used i = 0 \PpD/ -{ \ EmE . in the State and local sector, defined in equation 22, is net of Federal taxes and plus Federal Wo = .6475 w'o = -.3575 W1 = .2555 w'l = -.0724 transfers. W2 = .0598 w'2 = .1061 W3 = -.0018 w's = .1781 EQUATIONS W4 = .0090 w'4 — .1431 W5 = .0302 w'j = .0022 A. INVESTMENT IN PLANT AND EQUIPMENT Sw»’ = 1.0002 Zw'i - -.0004 Gross business product identity 11. Ou MB = OuME-i + .25 (Owe — Ems) 1. Yb = Y — Cn — Epw — Esw — Yp 12. Omb = 6.0640 + .9665 Opp - .0289 time Cost of capital relationships 13. Ems — 8.2212 4- .8554 Epp -|- .0041 time 2. Rcbi = -.0133 + .9325 Rc + .0635 RD Demand for nonresldential structures + .0045 time + .8512 «_, Eps _ 16 Vs , Yb .. 3. fo = (1 - a^ (-1.30 + .6290 Rcbi + .2160 Rp) 14. s - .2710 Ksb Pps i = 1 pB_i 4. & = (1 - a,tc) (-1.833 + .0264 Rcbi + .7258 Rp) Identities defining current dollar rent per unit of Wi 5= .0038 Wu = .0021 Wi 5= .0051 Wn = .0019 new investment Wj = .0056 Wn = .0017 5a. Pqs = Ppp (.01 Rb + a<) 1 ( 1 - — t, t^, — zt + ZjtcZt) W W4 b = = . .0 0 0 0 5 5 3 7 w wk u = = . . 0 0 0 0 1 1 3 5 for 1948-63 We = .0048 Wi« = .0008 W7 S= .0042 Sun = .0528 5b. Pqs Ppp (-01 Rs 4~ 1 a > - ) ( 1, 1 ~ l^i ~ zt) w W# 8 s = s : . . 0 0 0 0 3 3 5 0 for 1964-66 WJ0 = .0025 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

34 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Identity defining stock of nonresidential structures 23. Est = Esw + Esc + Eso + Gsp + INTs — Tss 15. Ksr = fl-^ Ksr j + .25 f^) — Gpa \ 4 / —1 \rps/ -i 24. = 302 +^ w< B. HOUSING SECTOR t=0 Housing inventory, starts, and expenditures 11 Ys' 16. KhIB=2 »<(^)_. + S W \NP0, i=0 wo = .55 wa = .03 1 Wi = .47 ^Wi = 1.20 + 2 w'a ws = .15 1=0 7 7 / Pr\ 17. &Khir = 2 w( ^Ru)^ +2 w< ( ) i=0 t=0 V + .5170 tU +.™&j® W W w w o 2 3 i = = = = - - - - . . . . 2 2 1 3 7 0 4 5 7 6 5 8 1 2 8 4 W w w w ' ' ' ' g o l 2 s s = s = = a s 3 3 4 1 . . . . 9 3 0 7 2 5 6 6 W W w o 2 i = = = - - - - . . . . 0 0 0 0 4 2 1 0 2 7 5 5 8 3 0 3 w w w w' ’ ' ' a a t , - = = = — - - - . . . 0 0 0 .0 0 0 0 0 0 0 0 0 3 4 4 3 w< = - .0958 w'4 z= 4.35 w3 = .0016 w't = —.0005 w W w SW 7 6 C j■ = = = = - - - -1 .1 . . . 0 0 0 7 5 2 0 4 6 7 8 8 2 0 3 w w W S ' ' w f b e i '* = = s ” = 2 3 3 6 1 . . . . 9 0 1 7 1 4 3 4 W w W w w 4 6 f 7 8 l = = = = - . . . . 0 0 0 0 0 0 1 0 6 8 0 9 2 9 0 6 w w w w' ' ' ' 1 1 o a 1 0 = = = = — — — — . . . . 0 0 0 0 0 0 0 0 0 0 0 0 5 4 2 3 w9 = .0081 2w'< = —.0050 18. Eh = 2.9658 + 2 2 w( HS-i + .0408 time W10 = . . 0 0 0 0 5 3 7 0 w w’ ’ i o = = . .0 2 9 9 8 2 6 4 *=0 WU = Sw< = -.0372 2w'(= .3910 + .7109 11-, w'o = -.0006 w'"o-----.0198 w\ = -.0006 w"'i = .0340 wo = 1.8541 w, = .5079 w'2 = -.0005 2w'"<= .0142 wi = 1.8271 2w,= 4.1891 Rent and house prices 2B- wK ■ “ - 0272 (S® VF. - 0,04 19. tin PK = .5972 - .0957 In ^^ + .0207 In —^ + ■'“&”)© - .0782 Zn^-1 - .2031 ^ 1 -'““■® + 2 Wi i =0 = -.0037 + 2 Wi ^Rm). + .2545 ^ wo = .1970 wi = .1679 2w,- = .3649 Wi = .0102 Wa = .0060 Wi = .0099 w» = .0050 ws = .0095 W10 = .0039 26. ^ = 32,722 + 3086 ^ w* = .0090 Wn = .0027 Wa = .0084 W12 = .0014 w( = .0077 2w,-= .0806 + 0835 (ft) ® w^ = .0069 1 +1298 O’) ® + 2 Wi (A) Identity defining housing stock i=0 21. Khr = .994 Khr , + .25 3 ( Ys\ + 2 Wi (Rc}-i \NPa) 1=0 C. STATE AND LOCAL GOVERNMENTS w0 = —.0762 w'o = —.0017 wj = -.0277 w'i = — .0002 Expenditures 2w,= -.1039 w'a = .0016 22. Ts = y —Tfp — Tpc ~ Tri — Tfs — Tfb w'a = .0021 — ey + Gfp + Gfu + Gfs + INTp 2w',= .0018 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 35 <te-iUM+.mt‘te *Erw = Federal compensation of employees, cur­ 27. rent dollars Esw = State and local compensation of employ­ ees, current dollars *Yf = output originating abroad, current dollars 1 *Rcbi = Moody’s industrial bond yield, per cent + 2 W'j *Rd = Moody’s industrial dividend-price ratio i=0 for common stocks, per cent Wo = .0219 w'o = -.0004 Rc = Moody’s Aaa corporate bond rate, per W1 = -.0126 W'i = .0007 2w,- = .0093 2w'< = .0003 cent Re = cost of capital, equipment, per cent Taxes and profits of government enterprises Rs = cost of capital, structures, per cent 28. ^ = -37.671 + .0258^ + .2470^ Pqe = current dollar rent, equipment, decimal - .0063 (Rc) (^) Pqs = current dollar rent, structures, decimal *Ppd = price deflator, producers’ durable equip­ - .5358 ( E^- ) f^) ment, decimal \Est + GfgJ \ N / *Pps = price deflator, producers’ structures, dec­ imal Tsi 1 29. = -14.944 + 2 w( PB = price deflator, gross business product, N i=0 decimal , 1, , /&r\ Ve = equilibrium capital-output ratio, equip­ ment - 1.2280 Vs = equilibrium capital-output ratio, struc­ Wo = —.0014 w'o = .7684 tures Wj - .0277 w\ = .1149 Opo — orders for producers’ durable equipment, Sw< = .0263 2w',- = .8833 current dollars 30. Tsc = -.418 + .0177 Yc + .0365 Kst Epd = expenditures on producers’ durable - •0514 ( _ -^„—)est - .0010 Rc Est equipment, current dollars \Est t Oro/ Ome = orders for machinery and equipment, current dollars 31. Tss = .0900 + .1110 Ksiv Eme = shipments of machinery and equipment, 1 current dollars 32. Gss = --301 + S i= 0 w( (Ys)-< + .0859 Est Oume= stock of unfilled orders for machinery and equipment, current dollars E F st t cxfo/ (^r) Eps = expenditures on producers’ structures, — .0033 (Rc) (Est) current dollars wo = -.0038 Wi = .0064 2w,- = .0026 Ksr = capital stock of producers’ structures, 1958 dollars ♦time = 1 in 1948 QI, increments by one every GLOSSARY quarter * indicates exogenous to investment block. *tc = corporate tax rate, decimal Investment in plant and equipment *% = rate of tax credit for investment in pro­ Yg = gross business products, current dollars ducers’ durable equipment, decimal ♦y = GNP, current dollars *z, = present value of depreciation deduction *Cnw = output originating in households, current per dollar of new producers’ durable dollars equipment, decimal Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN □ JANUARY 1968 *«. present value of depreciation deduction *Trc = Federal corporate profits tax accruals per dollar of new producers’ durable *Tfi = Federal indirect taxes structures, decimal *Tfs = Federal social insurance contributions *a2 — desired proportion of debt in corporate *Tfb = Federal estate and gift taxes capital structures, = .2, 1948-66 *eT = Federal personal taxes on national in­ *as tss annual rate of depreciation of producers’ come accounts basis less taxes on a lia­ durable equipment, = .16,1948-66 bility basis *a< - annual rate of depreciation of producers’ *Gfp = Federal transfer payments to persons structures, = .06, 1948-66 less unemployment insurance benefits e sc base of natural logarithm *Gfu = unemployment insurance benefits H-i — previous period error term *Gfs = Federal subsidies less current surplus of government enterprises Housing *INTf = Federal net interest payments Eh expenditures for residential construction, current dollars *Gfo = Federal grants-in-aid to State and local governments Hs housing starts times average value per Esw = State and local compensation of employ­ start, current dollars quarterly rates ees Khr = stock of houses, 1958 dollars Esc = State and local construction expenditures Khir = housing inventory under construction, Eso = State and local other purchases 1958 dollars GSp = State and local transfer payments Pr = rental price component of consumer price index, decimal *INTs = State and local net interest payments Ph housing price deflator in the national in­ Gss = State and local surplus of government come accounts, decimal enterprises *Pc = consumer expenditure price deflator, na­ Tsp = State and local personal taxes tional income accounts, decimal Tsc = State and local corporate taxes •N = total population, billions Tsi = State and local indirect taxes *Yd = disposable personal income using per­ Tss = State and local social insurance contribu­ sonal tax liabilities, current dollars tions *time - 1 in 1948 QI, increments by one every *Yh = personal income quarter *Yc = corporate profits before tax (does not in­ 41-1 = previous period residual clude IVA) *Rc = Moody’s Aaa corporate bond rate, per State and local governments cent (All flow variables measured in current dollars, sea- *Po = GNP deflator, decimal sonally adjusted annual rates) * Ps = price deflator for State and local pur­ Fs = net income of citizens of States and lo­ chases, decimal calities * N = population Est ss total net expenditures of States and lo­ calities * ^20 = population under age 20, billions ♦f = GNP * Le = employed labor force, billions *Tfp 1= Federal personal taxes, liability basis * La = armed forces, billions Consumption-Inventory Block Equations 1 and 2 of this block are identities add­ The next set of equations gets us from GNP to ing up the components of GNP and consumer ex­ disposable income in four steps. Personal income penditures, respectively. less certain exogenous transfer payments depends Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 37 on current and lagged GNP in such a way as to than autos, the fraction of current purchases is change less abruptly than GNP (equation 3). After also between 6 and 7 per cent, but for autos it is we add the price-wage block to the model, we plan nearly 12 per cent. All of these coefficients rep­ to replace equation 3 with one in which the relation resent estimated depreciation rates plus an interest of personal income and GNP depends on price, imputation. For other durables, depreciation rates wage, and manhour changes. Taxable income come from a standard declining-balance formula depends on personal income and exemptions based on data on lengths of life of durables in (equation 4), income tax accruals are equal to Goldsmith.3 For autos depreciation rates come taxable income multipled by an exogenous tax rate from a declining-balance formula with roughly (equation 5), and disposable income depends, double depreciation in the first quarter, based on through an identity, on personal income, income a regression analysis of data compiled by Charles tax accruals, and two categories of tax payments Friedman.4 Autos are thus assumed to depreciate exogenous to this block. in value (and hence to yield services) at a much Equations 7 through 10 get us from disposable faster rate in the first quarter of their existence income to total consumption (in our sense of in­ than in subsequent quarters. cluding the services of durable goods) and its al­ Equations 14 and 15 define total consumer ex­ location. Equation 7 is the basic equation in the penditures in real terms and total consumption in consumption sector. It relates our version of con­ real terms. Equation 15 is listed simply to make sumption to current and lagged disposable income clear the relation between the two consumption with a long distributed lag. To guard against concepts; it is redundant in the complete consump­ simultaneous equations bias, the relationship was tion-inventory block since it is the sum of equa­ actually estimated in ratio form with everything tions 8, 9, and 10. divided by current income.’ We have experimented Equations 16 and 17 explain stocks of autos and with wealth effects on consumption but were un­ other durables by using declining-balance formu­ able to get usable results due to collinearity be­ las. The depreciation rates are the ones already tween wealth and income. To some extent, the lag discussed in connection with equations 12 and 13. in income can serve as a proxy for wealth effects. Equation 18 explains inventory investment. As Equations 8 to 10 explain the distribution of described in the text, the equation estimates dif­ total consumption among its three components— ferent inventory-sales ratios and different lags on consumption of nondurables and services and the the various components of final demand. Thus imputed services of autos and of other durables. goods-in-process inventories connected with de­ These equations have been estimated with the sum fense spending show up before expenditures, of the coefficients for total consumption con­ whereas consumer expenditures have a small strained to equal one, and the sum of all other negative unanticipated effect in the current sets of coefficients constrained to equal zero. This quarter.’ means that variables such as relative prices, in­ Equation 19 explains imports. This equation terest rates, population, and the stocks of durables allows the average propensity to import to rise as influence the distribution of consumption among GNP rises (as if imports were a luxury good). its components, but not the over-all total. Equation Relative price effects were tried in this equation, 11 is the definition of the real income variable but they proved to be unimportant, perhaps be­ appearing in equations 8 to 10. cause of errors of measurement in the import price The remaining consumption equations are index. identities. Equations 12 and 13 show the relation between consumption and consumer spending for “Raymond Goldsmith, The National Wealth of the autos and for other durables. Since stocks (KA1C and United States in the Postwar Period (Princeton University Kdk) are not measured at annual rates, whereas the Press, 1962). other variables are, these equations imply that on ‘Charles Friedman, “The Stock of Automobiles in the a quarterly basis consumption in our sense equals United States,” Survey of Current Business, October 1965. between 6 and 7 per cent of the initial stock plus 6 In estimating this effect we made use of an instrumental variable, or two-stage technique, with new orders, lagged a fraction of current purchases. For durables other potential bank deposits, defense spending, and a number of ’ See Ando and Modigliani, op.cit., pages 69-70. other predetermined variables entering the first stage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN □ JANUARY 1968 EQUATIONS w"2 = -.0011 w2 + w'2 + w*2 = 0 w", = -.0041 etc. A. GNP AND CONSUMPTION IDENTITIES w"< = -.0060 w"s = -.0065 1. Y = Cp + Ei — Em + Z (identity) w’,-----.0056 w’j = — .0035 2. Cp = Cn + {Ecar + Ecdr) Pcad (identity) Sw'^ -.0268 B. INCOME SHARES AND TAXES 11. Ydr = Fn/(.774 Pen + .226 Pcad) (identity) 3. Xj!—^££ = .789 - .0005 time - .271 ^^ D. RELATION OF REAL CONSUMER -■“(^-•““(xf) EXPENDITURES TO REAL CONSUMPTION 12. Car = .2551 Kar^ 4- .11625 Ecar (identity) 4. In (1 - = .123 - .3274 In \ Yh/ \N J 13. Cdr ■= .2675 Kdr^ + .06251 Ecdr (identity) + .2808 In EX 14. Cpr = Cn/Pcn + Ecar + Ecdr (identity) 5. Tpp = th {Yt) 15. Ctr - Cn/Pcn + Car + Cdr (identity) 6. Yd = Yr ~ Tpp — Tpp — Tsp (identity) E. STOCKS OF CONSUMER DURABLES C. TOTAL CONSUMPTION AND ITS COMPONENTS 16. Kar ■= .9457 Kar^ + .8884 {Ecar/4) (identity) Total consumption 17. Kdr = .9426 (Kdr_, + [Ecdr/4]) (identity) 7. CTR (.774 Pen + -226 Pcad) = .3734 Yd 12 F. INVENTORY INVESTMENT + t S = 1 Wi Yd f + .90 H-i 18. Eir = .424 EiR-^ — .138 &Cpr + .573 {aCpr)^ Wi = .0849 wo = .0584 w9 = .0300 + .387 A +2 Wi A w3 = .0785 w« — .0514 Wk = .0227 ^w{ = .5673 \P^ / 2=0 \PpD/-i wi = .0718 w7 = .0442 Wn = .0153 — .276 AStr wt = .0651 Wg = .0373 w]2 = .0077 w0 = —.020 ws = .335 wi = .214 We = .224 Components w2 = .331 2w<= 1.084 8. Cn/Pcn = .9518 Ctr - .0191 yDR 19. Ei = Eir (1.202 Pnb - .095 )Fm) + .009 / i 7 P \ + ^2 w{Rc-i - .0919 \ Kar-i G. IMPORTS \10i = 2 Pcad! 20. EmIY = .665 {Em/Y)-i + ^ (.0009 ~ - .1625 Kar-i - .1497 Kdr-i + 32.640 N + .0140 + 1.0095) 9. Car ^ .0369 Ctr + .0205 Ydr 1.05 - Um. /1 7 P \ + .0032 Duds + .0027 Duss + (-4:2 w'i Rc-i + .0781 ) Kar-1 \10 j=2 Pcad) H. CAPACITY UTILIZATION, MATERIALS + .1778 7GR-i - .1324KDR-i - 21.666 X INDUSTRIES 21. &UM = {Cn/Pcn) (^'®^ ^PiR + 1.905 A {Ecar 10. Cdr = .0112 Ctr - .0014 Ydr + Ecdr) + .821 A ^ - .0156 + i 1 s 7 w"<ftc . +.0138 P ^1 \ K^R “CN / lui = 2 Pcad! ■ GLOSSARY - .0154 Kar^ + .2821 Kdr^ - 10.965 N (Dollar amounts, in billions, seasonally adjusted at an­ nual rates except where noted. ♦ indicates exogenous W2 = -.0154 w'2 = .0165 to consumption-inventory block) W W g t = = . . 0 0 1 0 6 3 3 8 w w 's ' e = -- ---. . 0 0 1 0 0 0 3 4 Car = consumption of the services of autos Ws = .0222 w'o = -.0157 and parts, 1958 dollars W W7 b = = . . 0 0 2 1 1 4 4 0 w w ' ' e i = = - - . . 0 0 1 1 5 0 8 6 Cdr = consumption of the services of durables ^Wi= .0623 Zw't= —.0355 except autos and parts, 1958 dollars Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ECONOMETRIC MODEL 39 CN = expenditures on nondurables and serv­ * Pp = implicit deflator for Federal purchases, ices, current dollars 1958 = 1.00 Cp = total consumer expenditures, current * Pnb = implicit deflator for nonfarm business dollars GNP, 1958 = 1.00 Cpr = total consumer expenditures, 1958 dol­ * Ppd = implicit deflator for producers’ durable lars equipment, 1958 = 1.00 Ctr = total “consumption” (see text), 1958 * Po = implicit deflator for GNP, 1958 = 1.00 dollars * Rc = yield on seasoned Aaa corporate bonds, * Duds = dummy variable for 1965 dock strike in per cent * Duss = dummy variable for 1959 steel strike ♦ Str = man-days idle in excess of 10,000, in Ecar = consumer expenditures on autos and thousands parts, 1958 dollars * lime = time; 1948 1 = 1, 1948 II = 2, etc. Ecdr = consumer expenditures on durables ex­ * Tre = Federal estate and gift tax payments, cept autos and parts, 1958 dollars current dollars * Efd = Federal expenditures on defense goods, TFp «= Federal personal income tax liabilities, current dollars current dollars E/ = nonfarm inventory investment, current * h = average tax rate under Federal personal dollars income tax; 20 per cent = .2, etc. Eir = nonfarm inventory investment, constant * TSP = State and local personal taxes, current dollars dollars Em = imports, current dollars Um = utilization rate for materials industries; * EX = per capita exemptions under Federal 90 per cent = .9, etc. personal income tax, in dollars * Wnb = average wage rate for nonfarm busi­ * gFp = Federal transfer payments to persons, ness, dollars per hour except unemployment benefits. Y = GNP, current dollars Kar = stock of consumer autos and parts end Yd = disposable personal income with taxes of quarter, not at annual rates, 1958 measured on a liability basis, current dollars dollars Kdr = stock of consumer durables except au­ Ydr = disposable personal income divided by tos and parts, end of quarter, not at an­ a weighted average of deflators for con­ nual rates, 1958 dollars sumer expenditures * K = total U.S. population, billions Yh = personal income, current dollars * OpD = new orders for producers’ durable Yt = taxable personal income, current dol­ equipment, current dollars lars * Pcad = implicit deflator for consumer durables * Z = autonomous spending; the sum of ex­ (including autos), 1958 = 1.00 ports, government expenditures, fixed * pCN s implicit deflator for consumer nondur­ investment, and farm inventory invest­ ables and services, 1958 = 1.00 ment The Three Blocks Combined The important equation of this block is num­ Corporate cash flows are described by the ber 5, which explains corporate dividend pay­ identity in equation 3 and Federal corporate taxes ments. Dividends have an effect on stock prices by equation 4. The equation for State and local and will also be included in personal income corporate taxes is part of the investment block. when we finish the labor market side of the Equation 1 explains corporate profits. Except model. They depend on corporate cash flows with for statistical discrepancy and inventory valuation a distributed lag. adjustment, this equation would be an identity, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN □ JANUARY 1968 and equation 2 is an informal way of dealing with *Epd = expenditures on producers’ durables the obscure residual items. Equations 6 through equipment 10 then fill in the missing links in equation 1. This ★Cp = personal consumption expenditures treatment gives a very minor importance to in­ ★IN7' = net interest paid by government and by direct taxes, but our conclusions on this matter consumers will change when we add the price and labor ERR = Federal unemployment benefits less sta­ market blocks to the model. Both taxes would tistical discrepancy less net wage accruals then have a direct effect on personal income, and less inventory valuation adjustment indirect taxes will also influence output prices. Tfi = Federal indirect taxes Tfs = Federal social insurance contributions EQUATIONS ★Gfs “ Federal subsides less current surplus of government enterprises Corporate profits, cash flows, and dividends 1. Yc = Y — DEP — Tfi — Tsi + Gfs — Gss ★Gfp = Federal transfer payments to persons less unemployment insurance benefits — Tfs — Tss + Yen + INT + Gfp + GSP -Yh + ERR TFc = Federal corporate profits tax accruals 2. ^^-----.0238 + .0386 Um - .0776 (^--1) Tfx = Federal excise taxes ★Tfcd = Federal customs duties + .6585u~i Tfo = Federal social insurance contributions 3. Ycf = Yc + DEPc — Tpc — Tsc for old-age, survivors, disability insur­ 4. In (Tfc + ctittEpD) — —.4161 + .7262 lnte ance + 1.0177 In (Yc - Tsc) + .859M-, Tfu = Federal social insurance contributions, 7 unemployment insurance 5. Ycd — .9906 + S Wi Ycp-i + .5000u_i t=0 ★Tfso = Federal social insurance contributions, wo = .0600 ws = .0309 wo = .0119 other wi = .0485 w4 = .0239 w7 = .0061 ★Tsi = State and local indirect taxes ws = .0390 wt = .0177 Sw,-= .2380 *GSs = State and local current surplus of gov­ ernment enterprises Federal indirect and social insurance taxes ★Tss = State and local social insurance contribu­ 6. Tfi = Tfx + Tfcd tions 7. In Tfx = 1.0883 + .6315 lnCP + 1.1027 lntz *GSp = State and local transfer payments 8. Tfs = Tfo + Tfu + Tfso ★Tsc = State and local corporate taxes 9. In Tpo — Iw to 4- .9473 In Yu — .4384 ★ Um = FRB capacity utilization rate for ma­ 10. In Tfu — Intu ~P .4480 In Yn + 1.2887 In tuic terials, decimal + 2.9812 ★ e* = rate of tax credit for producers’ durable equipment, decimal GLOSSARY * lc = Federal corporate tax rate, decimal (All flow variables from national income accounts, ★ tx = Federal excise tax rate, decimal seasonally adjusted annual rates, billions of current ★ ic = Federal OASDI tax rate, decimal dollars) * U = Federal unemployment insurance tax = GNP rate, decimal ★ DEP - total depreciation allowances ★ tuic = labor force covered by unemployment ★ DEPC = corporate depreciation allowances insurance over total labor force, decimal Yc = corporate profits before tax (does not * «i = proportion of producers durable equip­ include IVA) ment eligible for tax credit, = .4139 ★ Yh = personal income from 1962-66 Ycd = corporate dividend payments ii_i = previous error term in appropriate equa­ Ycf = corporate cash flows tion Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits, July-October 1967 In the 3 months ending October 31, 1967, and savings deposits of individuals, partner­ member banks made further moderate up­ ships, and corporations (IPC) at member ward adjustments in the highest rates of in­ banks, as well as on rates of interest paid terest they would pay on various categories and on other terms offered. Reports were of time and savings deposits, in an effort received from 6,074 banks, or nearly all to remain relatively competitive with rapidly banks that are members of the Federal Re­ rising yields on money and capital market serve System. instruments. At the same time, the rate of growth in total time and savings deposits GROWTH OF DEPOSITS, BY TYPE slackened as compared with the previous In the latest 3-month period consumer-type two quarters that ended in April and in July. time deposits rose more rapidly than any In these earlier quarters inflows of time and other major grouping of deposits (Table 1). savings deposits had been unusually large, However, the 5.5 per cent increase in these reflecting in part transfers to banks of funds deposits was considerably below the in­ out of market instruments, on which yields creases in each of the previous two quarters. had been declining during much of the Regular savings deposits and business-type period, and in part the high level of per­ time deposits also rose less than in the Aprilsonal saving. During the most recent quar­ July quarter. (Business-type time deposits ter, there were reduced net inflows of time are those issued in denominations of $100,­ and savings deposits, mainly at large banks. 000 and over, and consumer-type time de­ Not only do these banks appear to have the posits are those in denominations of less most interest-sensitive depositors, but also than $100,000.) the banks themselves may have become less In spite of the recent slowing in growth aggressive in seeking time and savings de­ rates, total member bank holdings of time posits in view of the moderation in demand for bank loans. and savings deposits of individuals, partner­ Information on the recent pattern of ships, and corporations expanded at a con­ siderably more rapid pace between January changes in interest rates offered by banks and in flows into time and savings deposits and October 1967 than they had during has been obtained from the quarterly survey of member bank time and savings deposits 'This is one of a series of surveys of time and conducted by the Federal Reserve System savings deposits conducted by the Board of Gover­ nors. Previous surveys were made in late 1965, early as of October 31, 1967.1 As in previous sur­ 1966, and in January, April, and July, 1967. The veys, information was collected on amounts results of the surveys appeared in the Bulletins for April 1966, p. 466; August 1966, p. 1102; April 1967, outstanding of various categories of time p. 517; July 1967, p. 1099; and September 1967, p. 1488. Note.—Caroline H. Cagle of the Board’s Division Appendix tables for this article appear on pp. 49-62 of Research and Statistics prepared this article. of this Bulletin. 41 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN □ JANUARY 1968 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS (IPC) HELD BY MEMBER BANKS ON JANUARY 31, APRIL 28, JULY 31, AND OCTOBER 31, 1967 y.^>j&i.'.39tt;.'&i5»«^~£g^s^/&..fT,«n>;M^mfr.s4^^ Amount Number of issuing banks Millions of dollars Increase or decrease (—) Tvpe of deposit Jan.31-Apr. 28Apr. 28-July31 July 31-Oct, 31 Jan. Apr. July Oct. Jan. Apr. July Oct. 31, 28, 31, 31, 31, 28, 31, 31, 1967 1967 1967 1967 1967 1967 1967 1967 Millions Per Millions Per Millions Per of dollars cent of dollars cent of dollars cent Total time and savings.......... 6,034 6,034 6,003 5,999 116,890120,824126,160129,586 3,934 3.4 5,336 4.4 3,426 2.7 Savings.................................. 5,850 5,835 5,827 5,828 70,701 71,600 73,119 74,210 899 1.3 1,519 2.1 1,091 1.5 Consumer-type time de­ posits—less than $100,000: Total............................. 5,726 5,744 5,727 5,732 25,081 27,749 29,949 31,590 2,668 10.6 2,200 7.9 1,641 5.5 Savings bonds............. 174 179 175 183 1 ,409 1,643 1,788 1,866 234 16.6 145 8.8 78 4.4 Savings certificates ... 1,583 1,558 1,514 1,499 8,033 8,647 9,367 9,866 614 7.6 720 8.3 499 5.3 Other nonnegotiable CD’s.......................... 2,932 2,986 3,035 3,058 9,402 10,434 11,220 11,866 1,032 11.0 786 7.5 646 5.8 Negotiable CD’s......... 1,885 1,923 1,907 1,922 4,381 4,561 4,704 4,746 180 4.1 143 3.1 42 0.9 Time deposits, open account................. 977 1,008 1,016 1,025 1,856 2,465 2,871 3,246 609 32.8 406 16.5 375 13.1 Business-type time de­ posits—$100,000 or more: Total............................. 1,602 1,786 1 ,820 1 ,851 17,658 17,646 18,850 19,382 -12 -0.1 1,204 6.8 532 2.8 Negotiable CD’s......... 828 907 923 904 13,018 12,786 13,887 14,119 -232 -1.8 1,101 8.6 232 1.7 Nonnegotiable CD’s.. 882 993 1 ,000 1 ,054 2,814 3,188 3,360 3,582 374 13.3 172 5.4 222 6.6 Time deposits, open account................. 284 322 335 331 1,826 1,671 1,603 1,681 -155 -8.5 -68 -4.1 78 4.9 Christmas savings and other special accounts.. 4,084 4,201 4,174 4,117 3,450 3,828 4,243 4,404 378 11.0 415 10.8 161 3.8 -.£.<£: te^«isr:ja■SfSABSiHttBWOffiS338Bb»a SS>KC»£iK^essEESSjsBai Note.—Includes a small amount of deposits outstanding in a rela­ not included in the number of issuing banks. Dollar amounts may not tively few banks that no longer issue these types of deposits and are add to totals because of rounding. 1966, when savings inflows to all depositary deposits), which increased by 13 per cent institutions had declined, as market rates of —also less than in the preceding two quar­ interest rose in a period of monetary re­ ters. These deposits amounted to $3.2 bil­ straint. The larger total inflows of time and lion on October 31—75 per cent more than savings deposits at member banks during the amount outstanding on January 31, 1967 reflect mainly the change in behavior 1967. While these instruments are offered of regular savings deposits, which are sub­ by both large and small banks, the bulk of ject to a ceiling rate of 4 per cent, and in the deposits are in very large banks, where large negotiable CD’s. These types of depos­ the offering rate is generally 5 per cent. its rose substantially in 1967 after declining GROWTH BY BANK SIZE AND LOCATION in 1966. Other time deposits held by in­ dividuals, partnership, and corporations All consumer-type deposits—savings plus rose much less rapidly in 1967 than in 1966. consumer-type time—grew less rapidly at The most rapid increase in any of the large than at small banks in the July-Octo­ forms of time and savings deposits in the ber period. (See Table 2.) This is in contrast July-October period was in small denomina­ to the April-July and January-April survey tion open-account time deposits (presumed periods, when rates of growth were only to be mainly the 90-day-notice passbook slightly different for all bank-size groups. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 43 The greater decline in the growth rate at serve districts, reflecting in part aggressive large banks, as already noted, probably was promotion of new consumer-type open-ac­ partly in response to reduced aggressiveness count time deposits. The New York District, of these banks in attracting funds in view of where there is a heavy concentration of the sharp further cutback in loan demand large money market banks, had the smallest that began in the summer. Moreover, depos­ growth rate—1.8 per cent. itors at large banks, who tend to be relatively Changes in business-type time deposits rate sensitive, probably diverted a greater showed wide variations by size of bank and proportion of their savings into market in­ Federal Reserve district in the most recent struments on which yields were rising 3-month period. Among banks with total sharply than did the depositors at smaller deposits of $500 million and over—banks banks. that hold a large part of these deposits—the Among Federal Reserve districts the larg­ increase was only 2 per cent, compared with est increase in consumer-type deposits in nearly 7 per cent in the previous quarter. the 3 months ending October 31 occurred in For the next smaller bank-size class, where the Boston District (4.6 per cent), where most of the remaining business-type deposits the increases in savings and consumer-type are held, the increase was about 9 per cent time deposits topped all other Federal Re­ —somewhat greater than in the previous TABLE 2 CHANGE IN TIME AND SAVINGS DEPOSITS, IPC, AT MEMBER BANKS FROM JULY 31,1967, TO OCTOBER 31, 1967, BY TYPE OF DEPOSIT AND BY SIZE OF BANK AND FEDERAL RESERVE DISTRICT Consumer-type deposits Consumer-type deposits Group ti s m T av o e i t n a a g n l s d t B y u p s e i n ti e m ss e ­ ti s m T av o e i t n a a g n l s d B ty u p s e i n t e im ss e ­ deposits deposits Tout Savings C ty o p n e s u t m im e e r­ deposits deposits Total Savings C ty o p n e s u ti m m e e r­ Amount (in millions of dollars) In per cent All hanks......................................... 3,348 530 2,818 1,158 1,662 2.8 2.8 2.7 1.6 5.6 Size of bank (total deposits, in millions of dollars): Jess than 10.............. 292 9 283 121 162 3.9 12.2 3.8 2.9 5.0 16-50........................................ 613 16 597 260 337 3.0 3.1 3.0 2.0 4.8 50-100...................................... 237 1 236 97 139 2.8 0.2 2,9 1.7 5.8 100-500............................... 784 205 579 257 322 3.2 8.5 2.6 1.5 5.8 500 and over............... 1,421 300 1,121 420 701 2.4 2.0 2,5 1.3 6.0 F.R. district: Boston............................. 87 -70 157 73 84 2.0 -7.7 4,6 2.7 12.3 New York.............................. 550 244 306 99 207 2.2 3.3 1.8 0.7 6.2 Philadelphia........................... 247 20 227 85 142 3.8 3.8 3.8 2.1 7.5 Cleveland............................... 343 156 187 95 92 3.3 15.5 2.0 1.3 4.6 Richmond............................... 182 1 181 73 108 3.1 0.2 3.3 1.8 7.9 Atlanta.................................... 239 53 186 87 99 3.5 8.9 3,0 2.1 4.7 Chicago................................... 588 109 479 129 350 2.7 4.9 2.4 1.0 5.3 St. Louis.................................. 146 42 104 37 67 3.8 13.7 2.9 2.1 3.8 Minneapolis........................... 112 -9 121 24 97 3.0 -3.0 3.5 2.1 4.2 Kansas City........................... 147 -7 154 44 110 3.1 -1.4 3,6 1.9 5.8 Dallas...................................... 123 21 102 23 79 2.3 1.6 2.6 1.0 5.0 San Francisco........................ 584 -30 614 387 227 2.5 -0.9 3.1 2.5 5.3 Note.—This table was compiled by comparing individual bank in denominations of less than $100,000: savings certificates, savings figures as reported on October 31 and on July 31, 1967, for all member bonds, other nonnegotiable and negotiable CD’s and time deposits banks for which comparable information was available. The amounts open account. Business-type time deposits include the following instru­ shown here differ from Table 1 because data for all member banks ments issued in denominations of $100,000 and over: negotiable and were not available, and because Christmas savings and other special nonnegotiable CD’s and time deposits, open account. funds are excluded. Minus sign indicates a decrease. Dollar amounts may not add to Consumer-type time deposits are the following instruments issued totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN □ JANUARY 1968 quarter. As in the case of consumer-type tions. One out of three of the large banks deposits, the reduced inflows to business­ raised their rate, and two-thirds of them type deposits at the largest banks probably raised the rate to the 514 per cent ceiling. reflected the reduced need for funds asso­ Among smaller banks this proportion was ciated with the relative weakness of loan one-tenth, and about one-third of the banks demand. that raised rates went to the ceiling. Among Reserve districts, changes in bus­ About 4.5 per cent of the banks that issue iness-type time deposits varied from a de­ consumer-type time deposits increased their cline of nearly 8 per cent in the Boston highest offering rate in the most recent quar­ District—which had experienced the larg­ ter, with three-fourths of this group raising est inflow of consumer-type deposits—to an the rate to the 5 per cent ceiling on these de­ increase of almost 16 per cent in the Cleve­ posits. Most of the increases were 16 of a land District—which had next to the small­ percentage point or less. As in the case of est rise in consumer-type deposits. Of the business-type time deposits, a higher percent­ four Federal Reserve districts that reported age of large than of small banks raised their declines in business-type time deposits in the rate, and the proportion of big banks that most recent survey, all had unusually large raised to the 5 per cent ceiling was greater increases in one or more of the earlier 1967 than for smaller banks. surveys. In the Cleveland District, however, On regular savings there was little change where the recent expansion was greatest, in rates in the recent period. Only 1.5 per substantial declines had occurred earlier. cent of the banks changed the highest offer­ ing rate, and most of those moved it to the RATE CHANGES 4 per cent ceiling. Of the banks that changed their highest of­ CURRENT RATE STRUCTURE fering rates on business- and consumer-type time deposits in the July-October period More than half of all member banks were the vast majority increased them. Rate re­ paying the 5 per cent ceiling on at least ductions were less frequent than in any pre­ one consumer-type time deposit instrument vious survey in 1967. on the October survey date, slightly more On business-type time deposits, which than in July (Table 4). Among large banks are closely competitive with other money —total deposits of $100 million and over— market instruments, one out of every 6 is­ four-fifths were included in the group pay­ suing banks raised the maximum rate in the ing 5 per cent and they held 94 per cent of most recent quarter—for the most part by the consumer-type time deposits in banks of 14 or '/2 of a percentage point (Table 3). that size. On the other hand, among smaller Almost half of the rate increases were at banks, only about half of the banks were banks that moved to the 516 per cent ceiling, paying the ceiling rate, and they held less with another one-sixth at banks that raised than two-thirds of the consumer-type time their rate to 514 per cent, and most of the re­ deposits in all banks with total deposits of mainder at those going to 5 per cent. Rate less than $100 million. increases were three times as numerous Of the banks that issue business-type time among large banks—total deposits of $100 deposits nearly one-fourth were paying the million and over—as among smaller institu­ 514 per cent ceiling on one or more instru- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 45 ments of this type at the end of October. months covered by the most recent survey. Two-fifths of the large banks—total deposits On October 31 banks in the $100-millionof $100 million and over—were at this rate. and-over size class that offered the ceiling Reflecting the sharp rise in yields on com­ rate held nearly four-fifths of all business­ peting money market instruments in the type time deposits. summer and fall, the proportion of banks On regular savings deposits two-thirds of of this size offering the ceiling rate increased all member banks—with nine-tenths of all by more than 20 percentage points in the 3 such deposits—were paying the 4 per cent TABLE 3 MEMBER BANKS CHANGING THE MAXIMUM RATE PAID OR INTRODUCING NEW TIME AND SAVINGS DEPOSIT INSTRUMENTS BETWEEN JULY 31 AND OCTOBER 31, 1967 Consumer-type time Business-type time Savings deposits Size of bank, (total Size of bank, (total Size of bank, (total deposits in millions deposits in millions deposits in millions Group All of dollars) ah of dollars) All of dollars) sizes sizes sizes Less than 100 and Less than 100 and Less than 100 and 100 over 100 over 100 over Number of issuing banks, Oct. 31, 1967......... 5,695 5,299 396 1,841 1,455 386 5,791 5,392 399 Percentage distribution of number of banks in group Total............................................................. 100.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 No change in rate, July 31-Oct. 31................... 94.1 94.1 93.9 69.8 72.3 60.4 98.5 98.4 99.7 Banks raising rate................................................. 4.3 4.3 5.6 16.0 10.8 35.5 1.0 1.0 .3 New maximum rate * (per cent): 3,50 or less...................................................... (2) (2) .1 ,1 3.51-4,00........................................................ . 1 . 1 .9 .9 .3 4.01-4.25......................................................... (J) .2 ,1 .3 4.26-4.50.......................................................... .8 .5 .5 .6 4.51-4.75.......................................................... .4 .4 .5 .3 .3 .3 4.76-5.00.......................................................... 3.0 2.9 4.5 4.3 4.3 4.4 5.01-5.25......................................................... 2.9 2.0 6.5 5.26-5.50......................................................... 7.7 3.4 24.1 Banks reducing rate.............................................. 1.0 1.0 .5 3.5 3.8 2.3 .4 .4 New maximum rate 1 (per cent): 3.50 or less..................................................... . 1 .1 .1 .1 .4 .4 3.51-4.00......................................................... .2 .2 .4 .5 .3 4.01-4.25......................................................... (2) (2) .2 .3 4.26-4.50......................................................... .6 .6 .3 .5 .6 .3 4.51-4.75......................................................... .1 .1 .3 .2 .2 .3 4.76-5.00......................................................... 1.1 1.3 .5 5.01-5.25....................................................... .8 .8 1.0 Banks introducing new instruments 3........ .6 .6 10.7 13.1 1.8 .1 .2 Maximum rate 1 (per cent): 3,50 or less...................................................... ,1 . 1 .4 .5 .1 .1 3.51-4.00......................................................... .2 .2 1.8 2.2 .5 (2) .1 4.01-4.25......................................................... . 1 , 1 4.26-4.50......................................................... .1 .2 1.9 2.3 .3 4.51-4,75......................................................... <2 (2) .5 .5 .3 4.76-5,00......................................................... .2 4.9 6,1 .8 5.01-5.25......................................................... .4 .5 5.26-5.50......................................................... .7 .8 i While rate ranges of % of a percentage point are shown in this and Note.—Excludes banks for which comparable data were not avail­ other tables, the maximum rate reported by nearly all banks was the able on July 31 and October 31, 1967. Consumer-type time deposits top rate in the range; for example, 4.00, 4.25, etc. On business-type includes the following instruments issued in denominations of less time deposits, however, some large banks had rates at intervals of than $100,000: savings certificates, savings bonds, other nonnegotiable i/fc of a percentage point, such as 5.125 and 5.375 per cent. and negotiable CD’s and time deposits, open account. Business-type 2 Less than .05 per cent. time deposits includes the following instruments issued in denomina­ 3 Between July 31 and October 31, 21 banks discontinued issuance tions of $100,000 or more: negotiable and nonnegotiable CD’s and of consumer-type time deposits and 166 banks discontinued issuance time deposits, open account. Percentages may not add to totals because of business-type time deposits. Since these banks had no offering rate of rounding. on these instruments as of October 31, 1967, they were excluded from this table, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN □ JANUARY 1968 ceiling at the end of October. These propor­ by instrument, with savings bonds generally tions were only slightly greater than on each being offered in lower minimum denomina­ of the previous 1967 surveys. tions but longer maturities than other con­ sumer-type time deposit instruments. These MINIMUM BALANCE AND SHORTEST patterns changed little over the year, al­ MATURITY REQUIREMENTS though there was some tendency toward About half or more of all member banks raising minimum denominations and lower­ reported again in the October survey that ing minimum maturities for all instruments they were willing to pay their maximum except savings bonds. rate on consumer-type time deposits in de­ AVERAGES OF OFFERING RATES nominations of $500 or less, and about the same proportion were willing to pay this Averages of the highest and of the most rate on maturities of 6 months or under. common rates of interest offered by member As in previous surveys, the pattern of mini­ banks on major categories of time and sav­ mum denominations and maturities varied ings deposits on October 31 and for the TABLE 4 TIME AND SAVINGS DEPOSITS, IPC, HELD BY MEMBER BANKS ON JULY 31 AND OCTOBER 31, 1967, BY TYPE OF DEPOSIT, BY MAXIMUM RATE PAID ON ANY INSTRUMENT IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits Size of bank (total deposits in millions of dollars) in millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over July 31 Oct. 31 July 31 Oct. 31 July 31 Oct. 31 July 31 Oct. 31 July 31 Oct. 31 July 31 Oct. 31 Amount of deposits (in millions of dollars), or Number of banks, or percentage distribution percentage distribution Consumer-type time deposits: Issuing banks............................... 5,727 5,732 5,342 5,335 385 397 29,945 31,586 12,912 13,306 17,033 18,280 Percentagedistribution by max­ imum rate paid: Total.......................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100,0 100.0 100.0 100.0 4.50 or less................................ 45.9 44.0 48.0 46.1 17.7 15.9 18.7 17.1 36.5 34.0 5.2 4.9 4.51-4.75................................... 2.6 2.2 2.5 2.3 4.1 2.0 2.1 1.3 2.4 2.1 1.9 .7 4.76-5.00................................... 51.5 53.8 49.5 51.6 78.2 82.1 79.2 81.6 61.1 63.9 92.9 94.4 Business-type time deposits: Issuing banks........................... 1,820 1,851 1,449 1,464 371 387 18,848 19,376 1,126 1,099 17,720 18,278 Percentage distribution by max­ imum rate paid: Total.......................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less............................... 32.5 28.1 36.2 31.5 18.1 15.5 2.9 2.5 22.3 18.2 1.7 1.6 4.51-4.75................................... 4.8 3.0 4.6 3.2 5.4 2.1 0.8 0.4 3.8 2.5 0.6 .3 4.76-5.00................................... 40.1 40.1 40.6 43.5 38,0 27.1 17.6 5.6 38.9 39.8 16.2 3.5 5.01-5.25................................... 6.5 6.5 3.4 5.1 18.6 11.9 50.7 11.1 5.0 5.6 53.7 11.4 5.26-5.50................................... 16.1 22.3 15.2 16.7 19.9 43.4 28.0 80.4 30.0 33.9 27.8 83.2 Savings deposits: Issuing banks........................... 5,827 5,828 5,439 5,428 388 400 73,118 74,210 23,088 23,196 50,031 51,014 Percentage distribution by max­ imum rate paid: Total.......................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3,50 or less................................ 34.1 33.6 35.8 35.4 10.6 10.3 10.2 10.0 24.0 23.6 3.9 3.8 3.51-4.00................................... 65.9 66.4 64.2 64.6 89.4 89.7 89.8 90.0 76.0 76.4 96.1 96.2 Note.—See Note to Table 3 for description of consumer-type time deposits and business-type time deposits. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 47 TABLE 5 AVERAGE OFFERING RATES AT MEMBER BANKS ON TIME AND SAVINGS DEPOSITS, IPC, SURVEY DATES, 1967 (Per cent per annum) Highest rate Most common rate Type of deposit Oct. 31 July 31 Apr. 28 Jan. 31 Oct. 31 July 31 Apr. 28 Jan. 31 Total time and savings deposits............................ 4.39 4.34 4.23 4.33 4.33 4.29 4.19 4.31 Savings deposits......................................................... 3.92 3.92 3.91 3.91 3.91 3,91 3.91 3.91 Consumer-type time deposits—less than $100,000.............................................................. 4.89 4.87 4.82 4.87 4.85 4.83 4.77 4.83 Business-type time deposits—$100,000 and over..............................................5.....3..7.................5..14 4.61 5.24 5.09 4.89 4.45 5.19 three previous quarterly survey dates are Between July 31 and October 31 the shown in Table 5.2 The averages were cal­ averages of the highest rates offered on reg­ culated by weighting the highest and most ular savings deposits and consumer-type common rates reported on each type of de­ time deposits changed little because most posit at each bank by the amount of the type large banks, which hold the bulk of these of deposit outstanding. deposits, had rates already at the ceiling. On regular savings deposits there was On business-type time deposits, the average little difference between the average of the rose 23 basis points. highest and the most common rates paid. Among Federal Reserve districts the The averages were also fairly close together highest average rates offered on regular for consumer-type time deposits as a group, but there were significant differences on in­ savings deposits and on consumer-type time dividual instruments in several Reserve dis­ deposits in the October survey—as in other tricts where some banks offered a number surveys in 1967—were in the San Fran­ of consumer instruments with varying com­ cisco District, where practically all member binations of rate, maturity, and denomina­ banks regardless of size were offering the tion. For business-type time deposits, how­ ceiling rate. On business-type time deposits, ever, where rate differentials associated with which are concentrated at the largest banks, maturity and other factors are much more the highest average was in the Dallas Re­ important, the highest rate at all member serve District, where virtually all banks with banks averaged somewhat more than one­ total deposits of $500 million or more were fourth of a percentage point above the most paying the 516 per cent ceiling. In four common rate on October 31. other Federal Reserve districts the average for banks of this size also was close to “Appendix Table 12 shows similar data for all the ceiling (Boston, New York, Cleveland, member banks grouped by size of total deposits and by Federal Reserve district. and Minneapolis). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 49 APPENDIX TABLE 1—SAVINGS DEPOSITS Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total 3.00 3.00 or less 3.50 4.00 or less 3.50 4.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks...................................................................... 5,828 1,283 678 3,867 74,209 3,919 3,473 66,817 Size of bank (total deposits in millions of dollars): Less than 10....................................................... 3,067 848 393 1,826 4,266 820 546 2,900 10-50........................................................................ 2,085 388 238 1,459 13,221 1,799 1,419 10,003 50-100...................................................................... 276 24 29 223 5,709 334 549 4,826 100-500................................................................... 305 20 15 270 17,316 780 645 15,891 500 and over.......................................................... 95 3 3 89 33,698 186 314 33,198 Federal Reserve district: Boston................................................................. 224 15 4 205 2,792 61 62 2,669 New York.......................................................... 379 16 15 348 14,061 545 174 13,342 Philadelphia....................................................... 372 137 109 126 4,144 677 923 2,544 Cleveland................................................................ 484 140 46 298 7,598 360 253 6,985 Richmond............................................................... 391 46 30 315 4,191 127 99 3,965 Atlanta.................................................................... 526 40 53 433 4,189 65 290 3,834 Chicago.......................................................... 965 321 181 463 13,282 1,081 1,273 10,928 St. Louis................................................................ 449 178 75 196 1,835 488 148 1,199 Minneapolis........................................................... 488 247 97 144 1,155 404 189 562 Kansas City........................................................... 791 126 64 601 2,392 97 55 2,240 Dallas.............................................................. 560 17 3 540 2,410 15 2 2,392 San Francisco....................................................... 199 1 198 16,160 2 16,156 APPENDIX TABLE 2—SAVINGS BONDS, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total 4.00 4.00 or less 4.50 5.00 or less 4.50 5.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks..................................................................... 183 21 80 82 1,765 5 139 1,620 Size of bank (total deposits in millions of dollars): Less than 10........................................................... 45 3 18 24 24 1 4 19 10-50........................................................................ 79 11 41 27 66 1 37 29 50-100..................................................................... 13 1 7 5 86 (!] 22 64 100-500.................................................................... 27 4 10 13 168 33 133 500 and over.......................................................... 19 2 4 13 1,421 (2) 43 1,376 Federal Reserve district: Boston..................................................................... 3 3 55 55 New York............................................................... 17 5 i 11 578 i 577 Philadelphia........................................................... 11 4 7 349 36 312 Cleveland............................................................... 10 i 4 5 98 8 90 Richmond................................• • •...................... 9 1 5 3 9 7 2 Atlanta.................................................................... 43 2 19 22 279 (2) 19 259 Chicago................................................................... 21 2 19 55 (3 55 St. Louis................................................................. 18 7 9 2 9 (2) Minneapolis........................................................... 4 3 1 7 4 (2) Kansas City........................................................... 24 2 9 13 60 (2) 2 58 Dallas...................................................................... 10 1 5 4 4 (2) <9 3 San Francisco....................................................... 13 2 11 260 (2) 260 For notes to Appendix Tables 1-9 see p. 53. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN □ JANUARY 1968 APPENDIX TABLE 3—SAVINGS CERTIFICATES, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total 3.50 Total 3.50 or 4.00 4.25 4.50 4.75 5.00 or 4.00 4.25 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banka 1,499 18 206 11 459 39 766 $,829 4 202 14 1,423 116 8,070 Size of bank (total deposits in millions of dollars): Less than 10................... 736 11 122 6 271 20 306 850 75 8 344 16 405 10-50................................ 499 3 62 3 141 15 275 1,831 74 3 550 32 1,172 50-100.............................. 73 1 6 1 15 1 49 572 5 143 (2) 407 100-500........................... 126 2 11 1 20 3 89 2,238 26 246 51 1,912 500 and over.................. 65 1 5 •........... 12 ...........4..7 4,337 22 139 4,174 F.R. district: Boston......... 26 3 3 4 16 59 6 52 New York.. 85 4 9 10 3 59 1,228 3 26 3 1,195 Philadelphia. 84 1 16 2 39 6 20 616 13 126 66 409 Cleveland... 198 1 57 3 60 8 69 1,002 48 168 27 753 Richmond.. 91 3 17 1 18 1 51 560 10 (2) 25 524 Atlanta......... 154 29 ............. 31 2 92 527 39 63 424 C St h . i L ca o g u o is .. . . . . . . . . . . . . . . . . 2 1 3 0 6 0 4 3 2 1 1 7 1 5 0 0 8 4 2 9 2 9 7 2,1 5 1 4 5 9 4 21 6 <2a 5 1 1 1 8 3 (2 7 4 1,5 3 6 8 9 9 Minneapolis.. 213 8 3 76 3 123 1,275 14 317 934 Kansas City.. 141 15 36 88 368 (2) 6 27 334 Dallas............. 112 1 11 1 24 4 71 228 P) (2) 29 193 San Francisco 59 3 ............. 4 1 51 1,301 6 (2) 1,294 APPENDIX TABLE 4—OTHER NONNEGOTIABLE CD’S IN DENOMINATIONS OF LESS THAN $100,000, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total 3.50 Total 3.50 or 4.00 4.25 4.50 4.75 5.00 or 4.00 4.25 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................... 3,058 41 355 25 954 77 1,606 11,846 6 241 19 2,679 200 8,700 Size of bank (total deposits in millions of dollars): Less than 10..................... 1,515 23 212 18 538 30 694 1,690 97 11 661 24 896 10-50.................................. 1,151 11 115 4 347 38 636 3,749 107 4 1,244 108 2,286 50-100................................ 172 3 10 1 42 6 110 1,286 2 3 (2) 401 25 825 100-500.............................. 169 3 16 2 24 3 121 1,877 2 34 (2) 256 43 1,541 500 and over.................... 51 I 2 3 45 3,244 (2 (2) 118 3,126 F.R, district: Boston,,.................. 85 1 13 16 7 48 45 (2) 1 4 2 38 New York................ 189 3 30 3 25 6 122 554 2 4 20 6 520 Philadelphia..................... 222 6 26 4 115 7 64 808 36 4 335 57 376 Cleveland.......................... 212 2 55 2 56 7 90 708 (2 34 (2) 146 10 517 Richmond......................... 186 7 38 6 31 3 101 581 30 4 38 6 503 Atlanta.............................. 282 2 36 51 10 183 1,021 (2 31 148 19 823 Chicago............................. 606 9 59 6 278 15 239 2,495 2 48 9 1,029 40 1,367 St. Louis............................ 253 2 33 137 8 73 969 21 31 424 32 481 Minneapolis..................... 236 3 9 112 7 105 901 (> 12 388 16 484 Kansas City..................... 405 4 31 2 94 2 272 975 (> 8 (2) 108 (2) 855 Dallas................................ 278 1 21 1 38 5 212 569 (21 4 (2) 39 9 517 San Francisco.................. 104 1 4 1 1 97 2,221 (2 1 (2) (2) 2,219 For notes to Appendix Tables 1-9 see p. 53. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 51 APPENDIX TABLE 5—NEGOTIABLE CD’S IN DENOMINATIONS OF LESS THAN $100,000, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total 3.50 Total 3.50 or 4.00 4.25 4.50 4.75 5.00 or 4.00 4.25 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks 1,922 23 277 19 411 37 1,155 4,737 6 169 15 647 87 3,814 Size of bank (total deposits in millions of dollars): Less than 10................... 874 15 162 10 242 7 438 769 71 7 247 3 441 10-50................................. 677 4 90 7 131 19 426 1,455 65 8 293 18 1,071 50-100............................... 105 1 12 1 11 4 76 394 (2) 6 (2 47 26 314 100-500........................... 187 11 1 23 6 146 1,182 23 58 38 1,062 500 and over................. 79 3 2 ............. 4 1 69 937 4 (2) 1 (2) 926 F.R. district: Boston_ 94 9 1 8 10 66 161 1 2 3 8 148 Now York.. 151 6 21 2 18 4 100 293 4 4 2 10 3 271 Philadelphia. 70 7 7 2 31 1 22 170 1 4 2 73 (2) 66 Cleveland... 81 2 30 2 19 28 239 (0 8 2 28 203 Richmond.. 125 1 31 2 15 3 73 199 (2) 23 2 15 3 157 Atlanta. 170 ....... 55 •........... 18 2 95 316 42 23 (2) 249 Chicago........... 226 27 3 74 7 115 844 26 3 176 7 632 St. Louis......... 135 3 29 4 63 1 35 296 (‘) 32 6 123 c2) 132 Minneapolis.. 127 9 48 1 69 199 8 68 (2j 105 Kansas City.. 344 1 42 2 68 2 229 597 I1) 16 (2) 70 (2j 509 Dallas............. 295 3 14 41 5 232 792 (■) 4 54 18 716 San Francisco 104 3 1 8 1 91 631 (■) (2) 5 (2) 626 APPENDIX TABLE &—TIME DEPOSITS, OPEN ACCOUNT, IN DENOMINATIONS OF LESS THAN $100,000, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.25 4.50 4.75 5.00 or 4.00 4.25 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS AH banks................................... 1,025 165 327 14 152 23 344 3,241 24 64 6 215 29 2,903 Size of bank (total deposits in millions of dollars): Less than 10..................... 324 72 125 2 52 2 71 94 7 10 (? 25 (? 52 10-50.................................. 397 70 133 7 61 12 114 226 10 22 35 150 50-100............................... 86 7 20 2 17 2 38 186 (0 17 (2) 58 (2) 102 100-500........................... 145 13 43 3 15 6 65 402 6 12 86 13 286 500 apd -over.................... 73 3 6 7 56 2,333 1 4 12 (2) 2,314 F.R. district: Boston...................... 74 15 1 4 2 52 445 2 ^ 12 <? 430 New York......................... 192 27 67 6 20 5 67 889 11 7 48 821 Philadelphia.................... 170 58 57 1 29 5 20 61 4 7 (2) 7 8 34 Cleveland.......................... 106 25 50 15 1 15 58 2 17 19 (2) 21 110 17 50 14 I 28 100 2 8 4 (2) 87 Atlanta ......................... 54 2 19 16 17 18 (2) 3 5 10 Chicago............................. 98 21 19 4 23 5 26 1,430 5 15 5 96 18 1,290 31 8 12 7 4 19 bl 1 8 ' 10 14 2 2 5 5 28 !;i 11 16 Kansas City. ................ 25 2 7 3 13 11 1 10 Dallas. ............. 90 3 21 H 3 52 76 (•) 2 (1) 72 San Francisco , ,............. 61 8 2 5 1 45 104 (1) (2) (0 (2) 103 For notes to Appendix Tables 1-9 see p. 53. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APPENDIX TABLE 7—NEGOTIABLE CD’S IN DENOMINATIONS OF $100,000 OR MORE, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total or 3 . l 5 e 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 or 3 .5 e 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 NUMBER OF BANKS MILLIONS OF DOLLARS AU banks. 904 3 58 6 118 25 344 69 281 14,113 120 6 96 39 531 1,728 11,594 Size of bank (total deposits in mil­ ions of dollars): Less than 10................................... 157 1 16 2 29 5 65 13 26 38 (2) 3 G) 7 14 5 7 10-50................................................ 361 24 3 57 10 172 14 80 230 (2) 6 20 5 97 13 85 50-100.............................................. 103 1 13 3 45 6 31 240 C2) 15 8 74 19 123 100-500........................................... 195 12 17 7 54 30 74 1,818 55 (2) 44 24 200 493 1,000 500 and over.................................. 88 2 2 8 6 70 11,787 (2) (2) 146 1,197 10,379 F.R. district: Boston......... 54 5 5 20 8 15 710 (2) 3 24 57 624 New York.. 112 1 5 14 3 28 13 48 5,736 (2) 14 70 648 5,002 Philadelphia. 24 8 2 5 1 8 328 4 (2) 5 C2) 304 Cleveland... 42 6 7 16 1 11 960 2 3 (2) 43 (2) 832 Richmond.., 57 10 8 2 26 10 198 2 (2) 5 (2) 60 129 Atlanta........ 74 16 31 3 18 400 47 (2) (2) 70 28 242 Chicago.......... 119 6 2 25 1 46 9 30 1,748 5 (2) 20 (2) 38 65 1,619 St. Louis........ 40 1 6 17 11 2 3 241 (2) 56 5 (2) 31 Minneapolis.. 41 10 14 1 14 230 (2) (2) 12 (2) 213 Kansas........... 105 5 1 6 3 45 10 35 388 6 (2) 3 (9 46 128 204 Dallas............. 165 1 11 6 74 12 60 1,151 C2) (2) 22 14 85 126 903 San Francisco 71 2 3 28 9 29 2,023 (2) 12 71 447 1,492 APPENDIX TABLE 8—NONNEGOTIABLE CD'S IN DENOMINATIONS OF $100,000 OR MORE, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Totti or 3 . l 5 e 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 o 3 r . 5 le 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 NUMBER OF BANKS MILLIONS OF DOLLARS AU banks.................................................. 1,054 13 64 8 226 33 483 65 162 3,577 5 30 11 227 39 711 1,205 1,349 Size of bank (total deposits in mil­ lions of dollars): Less than 10.................................... 170 7 18 39 7 74 9 16 39 1 4 8 4 15 2 5 10-50................................................ 499 2 29 7 127 17 223 24 70 273 G) 9 8 60 6 108 17 64 50-100.............................................. 145 1 4 32 4 76 9 19 212 2 38 1 103 9 59 100-500............................................ 174 2 11 1 25 5 78 15 28 657 (2) 12 (2) 82 28 235 72 223 500 and over.................................. 66 1 2 ............. 3 ............. 23 8 29 2,396 (2) (2) 40 .......2..5..0.. 1,104 999 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

F.R. district: Boston..........3..3......................... 1 3 2 7 4 16 55 (2) (2) 9 3 42 New York....................................... 96 2 6 2 12 38 8 28 856 (2) (2) 5 81 29 736 Philadelphia................................... 68 2 4 26 4 26 1 5 81 (2) 2 12 38 (J) 28 Cleveland........................................ 82 1 11 1 19 7 32 4 7 178 (2) 10 C2) 8 3 76 10 66 Richmond...................................... 77 3 8 1 10 4 36 7 8 226 2 2 (2) 11 3 55 53 100 Atlanta............................................. 114 12 1 12 6 50 10 23 226 5 (2) 24 27 69 51 50 Chicago............................................ 200 1 7 2 67 3 93 10 17 515 (^ 3 (2) 111 2 127 124 145 St. T.ouis..................... 67 2 5 31 2 21 2 4 93 (2) 3 27 54 (2) 6 Minneapolis.................................... 67 4 21 2 36 2 2 65 12 28 (9 (2) Kansas City.................................... 85 10 2 56 2 15 88 2 (2) 48 (2) 20 Dallas............................................... 116 2 5 14 1 62 8 24 134 (2) 2 9 (2) 46 14 62 San Francisco............................... 49 2 1 7 13 1,059 (2) (2) 79 902 73 APPENDIX TABLE 9—TIME DEPOSITS, OPEN ACCOUNT, IN DENOMINATIONS OF $100,000 OR MORE, IPC Maximum Interest Rates Paid by Member Banks on October 31, 1967 TIME AND SAVINGS DEPOSITS Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total or 3 .5 le 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 o 3 r . 5 le 0 s s 4.00 4.25 4.50 4.75 5.00 5.25 5.50 NUMBER OF BANKS MILLIONS OF DOLLARS All hanks.................................................. 331 26 83 3 34 16 105 12 52 1,676 14 34 2 36 9 253 269 1,059 Size of bank (total deposits in mil­ lions of dollars): T ess than 10.. .............................. 42 5 20 1 4 3 9 7 1 3 (2) G) 1 1 10-50................................................ 89 9 29 1 13 5 24 i 7 36 2 9 (2) 5 3 12 (2) 4 50-100.............................................. 44 3 10 3 1 15 11 25 3 5 2 (2) 9 (2) 5 100-500............................................ 95 6 21 11 7 34 5 11 150 4 15 9 5 70 17 30 500 and over.................................. 61 3 3 1 3 23 5 23 1,458 5 2 (2) 20 160 250 1,020 F.R. district: Boston..................................... 13 2 1 2 6 78 (2) (2) (2) 24 (2) (2) New York....................................... 69 6 10 9 3 23 2 16 1,074 3 2 8 1 104 (2) 830 Philadelphia.................................... 41 7 11 I 2 4 10 6 128 1 4 (2) (2) 2 9 111 Cleveland ..................................... 24 12 3 1 5 3 21 6 2 (2) 6 7 Richmond........................................ 29 10 2 15 2 37 4 (2) 21 (z) Atlanta .......................................... 25 4 7 I 3 1 5 4 22 1 2 (2) 1 (2) 11 6 Chicago............................................ 36 7 7 1 4 2 11 1 3 67 8 2 (2) 1 (2) 50 (2) 1 St Tfillip. .. ............. 21 16 3 1 1 13 11 1 (2) (2) ^Minneapolis ................... 2 1 1 1 (2) (2) Kansas City. .. ............. 11 2 1 1 3 4 8 (2) (2) (2) 1 2 Dallas .......................................... 34 4 5 14 2 8 32 1 2 (2) 8 19 SanFranciscn. ........................ 26 2 1 2 12 6 3 194 (2) (2) (2) 19 137 35 Notes to Appendix Tables I~9: ing on October 31, 1967. Time deposits, open account, exclude Christmas savings and other 1 Less than $500,000. special fund accounts. Dollar amounts may not add to totals because of rounding. 2 Omitted to avoid individual bank disclosure. In the headings of these tables under “Maximum rate paid (per cent)” the rates shown are Note.—Excludes banks that reported no interest rate paid on the survey date. Also excludes those being paid by nearly all reporting banks. However, for the relatively few banks that re­ a few banks that had discontinued issuing these instruments but still had some deposits outstand­ ported a rate in between those shown, the bank was included in the next higher rate. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APPENDIX TABLE 10—MINIMUM DENOMINATION AND SHORTEST MATURITY ON WHICH HIGHEST RATE WAS PAID BY MEMBER BANKS ON CONSUMER-TYPE TIME DEPOSITS ON OCTOBER 31, 1967 (Number of banks) Minimum denomination (in dollars) Shortest maturity (in months) All de­ All Size of bank and maximum rate nomi­ maturi­ nations 100 & 101­ 501­ 1,001­ 5,001­ Over ties 3 or Over under 500 1,000 5,000 25,000 25,000 less 4-6 7-12 13-24 25-60 60 SAVINGS BONDS Size of bank (total deposits, mil. $) All banks................................................................ 183 124 14 35 8 2 183 86 10 24 3 60 Maximum rate: 4.50% or less....................... 101 83 7 10 1 101 43 6 11 1 40 Over 4.50%........................... 82 41 7 25 7 2 ................. 82 43 4 13 2 20 .................. Under 10.................................................................. 45 26 5 11 1 2 45 22 4 5 1 13 Maximum rate: 4.50% or less....................... 21 15 3 3; 21 10 3 2 6 Over 4.50%........................... 24 11 2 8 1 2 ................. 24 12 1 3 1 7 .................. 10-50......................................................................... 79 57 7 13 2 ........... 79 34 4 8 33 Maximum rate: 4.50% or less....................... 52 44 1 5 1 52 18 2 7 25 Over 4.50%........................... 27 13 6 8 1 ................. 27 16 2 1 ...............8... .................. 50-100....................................................................... 13 9 2 2 ................. 13 8 1 1 3 Maximum rate: 4.50% or less....................... 8 8 8 5 3 Over 4.50%........................... 5 1 ................. 2 2 ................. 5 3 1 1 .................. 100-500.................................................................... 27 19 1 7 ................. 27 12 I 7 1 6 Maximum rate: 4.50% or less....................... 14 11 1 2 14 7 1 2 1 3 Over 4.50%.......................... 13 8 ................. 5 .................. 13 5 5 .................. 3 500 and over........................................................... 19 13 1 2 3 ................. 19 10 I 3 5 Maximum rate: 4.50% or less....................... 6 5 1 6 3 3 ......... Over 4.50%.......................... 13 8 2 3 ................. 13 7 1 3 .................. 2 SAVINGS CERTIFICATES Size of bank (total deposits, mil. $) All banks.................................................................. (2)1,498 526 372 393 172 34 1 (2)I,498 510 432 491 23 40 2 Maximum rate: 4.50% or less....................... 693 291 226 135 36 5 693 171 224 266 11 20 1 Over 4.50%........................... 805 235 146 258 136 29 1 805 339 208 225 12 20 1 Under 10.................................................................. (2)735 279 208 167 59 22 (2)735 184 237 297 9 8 Maximum rate: 4.50% or less........................ 409 173 140 74 18 4 409 80 139 180 6 4 Over 4.50%........................... 326 106 68 93 41 18 ................. 326 104 98 117 3 4 .................. 10-50........................................................................ 499 173 119 139 58 10 499 204 118 149 10 17 1 Maximum rate: 4.50% or less....................... 209 80 70 43 15 1 209 58 68 74 4 5 Over 4.50%........................... 290 93 49 96 43 9 ................. 290 146 50 75 6 12 1 50-100...................................................................... 73 23 14 19 17 73 34 21 13 1 4 Maximum rate: 4.50% or less....................... 23 13 5 3 2 23 11 5 4 3 Over 4.50%........................... 50 10 9 16 15 50 23 16 9 1 1 .................. 100-500.................................................................... 126 32 25 43 24 1 1 126 57 37 24 2 6 Maximum rate: 4.50% or less....................... 34 15 10 8 I 34 15 10 6 3 Over 4.50%........................... 92 17 15 35 23 1 1 92 42 27 18 2 3 .................. 500 and over........................................................... 65 19 6 25 14 1 65 31 19 8 1 5 1 Maximum rate: 4.50% or less....................... 18 10 1 7 18 7 2 2 1 5 1 Over 4.50%........................... 47 9 5 18 14 I ................. 47 24 17 6 OTHER NONNEGOTIABLE CD’S—LESS THAN $100,000 Size of bank (total deposits, mil. $) All banks................................................................. (2)3,057 809 649 1,000 397 169 33 (2)3,057 988 964 1,050 35 20 Maximum rate: 4.50% or less....................... 1,374 530 386 340 85 27 6 1,374 329 443 586 10 6 Over 4.50%........................... 1,683 279 263 660 312 142 27 1,683 659 521 464 25 14 .................. Under 10.................................................................. (2)1,514 467 377 476 120 66 8 (2)1,514 383 485 617 17 12 Maximum rate: 4.50% or less....................... 790 317 233 189 37 10 4 790 146 260 371 8 5 Over 4.50%........................... 724 150 144 287 83 56 4 724 237 225 246 9 7 .................. FEDERAL RESERVE BULLETIN □ JANUARY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

10-50........................................................................ 1,151 279 221 398 180 64 9 1,151 416 351 361 15 8 ......... Maximum rate: 4.50% or less.........-............ 477 176 133 120 37 9 2 477 142 150 182 2 1 Over 4.50%...........6..7..4............ 103 88 278 143 55 7 674 274 201 179 13 7 ................. 50-100...................................................................... 172 26 25 58 45 15 3 172 70 62 39 1 Maximum rate: 4.50% or less....................... 56 17 12 18 5 4 56 17 22 17 Over 4.50%...........1..1..6............ 9 13 40 40 11 3 116 53 40 22 1 100-500.................................................................... 169 27 23 52 45 14 8 169 85 52 31 1 Maximum rate: 4.50% or less....................... 45 16 8 12 5 4 45 19 II 15 Over 4.50%...........1..2..4............ 11 15 40 40 10 8 124 66 41 16 1 500 and over........................................................... 51 10 3 16 7 10 5 51 34 14 2 1 Maximum rate: 4.50% or less....................... 6 4 1 1 6 5 1 Over 4.50%.............4..5............ 6 3 15 6 10 5 45 29 14 1 1 NEGOTIABLE CD’S—LESS THAN $100,000 Size of bank (total deposits, mil. 5) All banks................................................................. 1,922 527 350 603 250 145 47 1,922 825 545 534 8 10 Maximum rate: 4.50% or less....................... 730 321 164 164 49 29 3 730 235 206 283 3 3 Over 4.50%........................... 1,192 206 186 439 201 116 44 1,192 590 339 251 5 7 ......................... Under 10.................................................................. 874 309 187 271 76 27 4 874 262 264 336 5 7 Maximum rate: 4.50% or less....................... 429 206 104 83 26 10 429 93 136 195 2 3 Over 4,50%........................... 445 103 83 188 50 17 4 445 169 128 141 3 4 10-50........................................................................ 677 162 122 241 89 50 13 677 315 190 169 1 2 Maximum rate: 450% or less....................... 232 91 47 65 14 13 2 232 96 59 77 Over 4.50%........................... 445 71 75 176 75 37 11 445 219 131 92 1 2 50-100...................................................................... 105 21 13 31 29 9 2 105 73 24 7 1 Maximum rate: 4.50% or less........................ 25 11 5 6 3 25 17 5 3 Over 4.50%........................... 80 10 8 25 26 9 2 80 56 19 4 i .......................... 100-500.................................................................... 187 26 25 49 42 31 14 187 121 44 21 1 Maximum rate: 4.50% or less....................... 35 8 8 9 6 4 35 20 6 8 1 Over 4.50%........................... 152 18 17 40 36 27 14 152 101 38 13 500 and over........................................................... 79 9 3 11 14 28 14 79 54 23 1 1 Maximum rate: 4.50% or less....................... 9 5 1 2 1 9 9 Over 4.50%........................... 70 4 3 10 14 26 13 70 45 23 1 1 TIME DEPOSITS, OPEN ACCOUNT—LESS THAN $100,000 Size of bank (total deposits, mil. S) All banks................................................................. >1,023 431 95 278 108 88 23 21,024 661 236 125 I 1 Maximum rate: 4.50% or less....................... 656 373 38 135 51 49 10 657 399 178 80 Over 4.50%........................... 367 58 57 143 57 39 13 367 262 58 45 1 1 ......................... Under 10.................................................................. 324 168 28 84 23 17 4 324 179 89 55 1 Maximum rate: 4.50% or less.................. 251 152 16 53 13 13 4 251 133 78 40 Over 4.50%........................... 73 16 12 31 10 4 .............7..3.. 46 11 15 1 10-50......................................................................... 2396 173 40 107 37 36 3 397 262 87 47 i Maximum rate: 4.50% or less....................... 270 157 14 58 18 21 2 271 172 71 28 Over 4.50%........................... 126 16 26 49 19 15 1 126 90 16 19 ...............1.. .......................... 50-100...................................................................... 86 29 10 22 16 7 2 86 59 15 12 Maximum rate: 4.50% or less....................... 46 24 5 6 6 3 2 46 27 10 9 Over 4.50%........................... 40 5 5 16 10 4 40 32 5 3 100-500.................................................................... 145 50 12 42 17 15 9 2144 110 25 9 Maximum rate: 4.50% or less....................... 74 36 3 15 11 7 2 73 56 14 3 Over 4.50%........................... 71 14 9 27 6 8 7 71 54 11 6 500 and over........................................................... 272 11 5 23 15 13 5 73 51 20 2 Maximum rate: 4.50% or less....................... 15 4 3 3 5 16 11 5 Over 4.50%........................... 57 7 5 20 12 8 5 57 40 15 2 ................. TIME AND SAVINGS DEPOSITS 1 Excludes 2 banks for which no information was available. UI 2 Excludes 1 bank for which no information was available. UI Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APPENDIX TABLE 11—MEMBER BANKS CHANGING MAXIMUM RATES PAID ON TIME AND SAVINGS DEPOSITS, IPC, JULY 31, 1967, TO OCTOBER 31, 1967 (Number of banks) Raised rate Raised rate Raised rate Banks No Banks No Banks No with change Maximum rate on Oct. 31 Re­ with change Maximum rate on Oct. 31 Re­ with change Maximum rate on Oct. 31 Re­ Group de­ (per cent) duced de­ (per cent) duced de­ in (per cent) duced posits rate rate posits rate rate posits rate rate 3.00 3.01­ 3.51­ 4.00 4.01­ 4.51­ Over 4.00 4.01­ 4.51­ Over Total or less 3.50 4.00 Total or less 4.50 5.00 5.00 Total or less 4.50 5.00 5.00 SAVINGS DEPOSITS SAVINGS CERTIFICATES NONNEGOTIABLE CD’S—LESS THAN $100,000 All banks 5,791 5,703 65 3 7 55 23 1,484 1,202 191 24 66 101 11 3,043 2,647 372 46 107 219 24 Size of bank (total deposits, mil. $): Under 10.......................... 3,042 2,984 46 3 36 12 723 615 106 14 43 49 2 1,509 1,298 202 29 69 104 9 10-50................................. 2,074 2,046 17 17 11 497 429 61 9 18 34 1,143 1,000 135 16 33 86 8 50-100............................... 276 275 1 73 62 11 3 8 172 152 15 11 5 100-500............................. 304 303 126 116 9 1 2 6 1 168 151 15 13 2 500 and over.................... 95 95 65 60 51 46 5 5 F. R. District: Boston......... 224 218 6 6 26 21 3 85 61 22 8 13 2 New York.. 375 372 2 2 1 84 76 5 3 2 3 187 156 26 3 5 18 5 Philadelphia. 371 363 6 5 2 83 69 13 8 5 1 195 2 13 10 2 Cleveland... 484 479 4 198 184 11 2 2 3 212 180 31 7 7 17 Richmond.. 389 381 6 6 2 91 75 16 4 6 6 185 162 22 7 8 7 1 Atlanta........ 523 522 153 136 17 15 280 247 30 5 3 3 Chicago......... 957 935 13 2 10 9 231 189 40 3 21 16 2 603 515 82 6 31 45 6 St. Louis........ 435 432 2 2 95 71 24 7 9 8 248 214 34 8 14 12 Minneapolis.. 488 473 9 5 6 212 187 24 1 11 12 236 205 31 2 8 21 Kansas City.. 790 779 10 10 140 121 19 2 13 405 370 35 5 5 25 Dallas............. 559 553 6 5 112 96 16 12 278 245 29 5 24 San Francisco 196 196 59 57 2 2 102 97 5 5 Raised rate Raised rate Raised rate Banks No Banks No Banks No with change Maximum rate on Oct. 31 Re­ with change Maximum rate on Oct. 31 Reduced with change Maximum rate on Oct. 31 Re­ Group de­ in (percent) duced de­ in (per cent) rate de­ in (percent) duced posits rate rate posits rate posits rate rate 4.00 4.01­ 4.51­ 4.00 4.01­ 4.51­ 4.00 4.01­ 4.51­ Over Total or less 4.50 5.00 Total or less 4.50 5.00 Total or less 4.50 5.00 5.00 SAVINGS BONDS NEGOTIABLE CD’S—LESS THAN $100,000 NEGOTIABLE CD’S—$100,000 OR MORE All banks 178 156 18 2 4 12 ,910 1,641 241 25 65 151 28 899 564 302 15 30 92 165 33 Size of bank (total deposits, »fl. $): Under 10.......................... 41 32 9 2 1 6 868 732 127 18 48 61 9 156 88 57 5 14 24 14 10-50................................. 78 70 5 2 3 3 672 589 68 7 15 46 15 358 257 90 8 14 40 "8 50-100................................ 13 12 105 96 9 9 70 27 2 2 9 6 100-500............................. 27 24 3 ...........1 2 186 158 25 2 23 3 194 117 72 17 55 5 500 and over.................... 19 18 1 1 79 66 12 ........... 12 1 88 32 56 2 54 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

F. R. district: Boston..... 3 3 94 76 15 15 3 22 27 3 9 15 5 New York. . 17 14 2 2 150 123 23 2 3 18 4 112 53 55 3 3 10 39 4 Philadelphia, 11 10 70 59 11 3 7 24 14 10 8 Cleveland. .. 10 9 81 67 13 2 2 9 42 29 13 2 3 7 Richmond.. 9 9 124 104 19 4 3 12 56 40 15 2 3 8 2 Atlanta......... 42 38 4 170 158 9 8 3 74 55 16 7 7 3 Chicago......... 20 16 3 2 187 36 17 15 2 118 61 53 9 18 St. Louis........ 16 16 129 105 23 16 3 38 30 8 2 Minneapolis.. 4 3 127 101 21 5 16 5 41 13 6 6 3 Kansas City.. 24 344 312 31 5 7 19 105 73 29 3 2 8 16 3 Dallas............. 10 6 4 294 256 33 3 8 5 165 118 40 2 18 19 7 San Francisco 12 12 102 93 7 7 2 70 44 2 20 3 Raised rate Raised rate Raised rate Banks No Banks No Banks No with change Maximum rate on Oct. 31 Re­ with change Maximum rate on Oct. 31 Re­ with change Maximum rate on Oct. 31 Re­ Group de­ (per cent) duced de­ (per cent) duced de­ in (per cent) duced posits rate rate posits rate rate posits rate rate 4.00 4.01­ 4.51­ 4.00 4.01­ 4.51­ Over 4.00 4.01­ 4.51­ Over Total or less 4.50 5.00 Total or less 4.50 5.00 5.00 Total or less 4.50 5.00 5.00 TIME DEPOSITS, OPEN ACCOUNT­ TIME DEPOSITS, OPEN ACCOUNT— NONNEGOTIABLE CD’S—$100,000 OR MORE LESS THAN $100,000 1 $100,000 OR MORE All banks 1,019 836 154 64 30 60 29 329 214 102 32 6 31 33 13 1,050 721 297 24 36 129 108 32 Size of bank (total deposits, mil. $): Under 10...................... 322 245 68 35 15 18 9 40 25 15 7 7 168 106 58 9 10 30 9 4 10-50................................. 393 331 48 20 10 18 89 57 30 15 3 9 3 497 355 132 8 19 71 10 50-100............................... 86 73 13 3 9 44 32 10 2 4 3 145 108 28 13 10 9 100-500............................. 145 124 16 6 2 8 5 95 68 22 6 10 5 5 174 123 42 5 3 13 21 9 500 and over................... 73 63 9 2 61 32 2 66 29 37 2 34 F. R. district: Boston..... 74 63 11 10 13 11 2 33 12 18 5 13 3 New York.. 191 149 26 12 3 11 16 69 38 25 6 2 5 12 6 94 50 39 2 5 9 23 5 Philadelphia. 170 150 19 8 7 41 23 16 6 6 2 68 46 18 2 II 4 Cleveland. - - 106 100 5 3 2 24 17 7 2 3 82 58 21 3 3 7 8 3 Richmond.. 109 90 17 10 2 5 29 21 8 3 4 56 19 8 6 2 Atlanta..... 53 45 7 5 2 24 19 5 2 2 113 75 36 18 13 2 Chicago......... 97 68 13 7 5 36 23 12 6 2 200 135 59 3 12 30 14 6 St. Louis........ 30 19 10 8 20 11 9 8 66 55 10 2 3 5 Minneapolis.. 14 5 9 3 2 2 2 67 50 16 3 9 3 Kansas City.. 18 7 3 11 9 2 85 65 19 11 4 Dallas............. 90 73 15 3 2 10 34 26 5 2 2 3 116 88 25 3 2 12 8 3 San Francisco 60 56 3 3 26 14 11 6 49 31 17 4 12 1 Excludes banks issuing only Christmas savings and other special accounts. for July 31, 1967, and October 31, 1967, for all member banks for which comparable information was available. Banks raising rates include banks that had no rate on July 31,1967, but began to pay interest Note.—This table was compiled by comparing individual bank figures as reported on the Surveys by October 31, 1967. TIME AND SAVINGS DEPOSITS UI Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN □ JANUARY 1968 APPENDIX TABLE 12—AVERAGE INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT MEMBER BANKS ON OCTOBER 31, 1967 Savings Consumer-type time deposits 1 Business-type time deposits 2 Federal Reserve All and district and time con­ size of bank and sumer Savings Other Time Time (total deposits, savings type de­ Sav­ Sav­ non­ Nego­ de­ Nego­ Non­ de­ in millions of de­ time posits Total ings ings nego­ tiable posits, Total tiable nego­ posits, dollars) posits de­ certifi­ bonds tiable CD’s open CD’s tiable open posits cates CD’s account CD’s account WEIGHTED AVERAGE OF HIGHEST RATES PAID (Per Cent) All size groups.. 4.39 4.21 3.92 4.89 4.90 4.96 4.86 4.88 4.92 5.37 5.42 5.22 5.28 Less than 10.. 4.16 4.16 3.70 4.72 4.69 4.87 - 4.74 4.74 4.62 4.79 4.91 4.77 4.16 10-50............... 4.18 4.16 3.80 4.80 4.80 4.69 4.80 4.85 4.69 5.00 5.10 4.96 4.62 50-100............. 4.23 4.18 3.89 4.84 4.86 4.87 4.83 4.90 4.73 5.10 5.22 5.05 4.43 100-500........... 4.29 4.18 3.93 4.91 4.93 4.88 4.90 4.95 4.77 5.22 5.29 5.09 4.89 500 and over.. 4.55 4.25 3.99 4.98 4.98 4.98 4.98 4.98 4.99 5.42 5.45 5.31 5.35 Boston: Total........ 4.42 4.18 3.97 4.97 4.94 5.00 4.91 4.97 4.98 5.41 5.45 5.36 5.13 Less than 10 4.11 4.10 3.96 4.87 4.70 4.81 4.78 4.95 4.97 4.89 5.07 10-50........... 4.15 4.11 3.94 4.93 4.81 5.00 4.92 4.91 4.98 5.13 5.08 5.27 4.98 50-100........ 4.16 4.11 4.00 4.85 5.00 4.86 4.95 4.81 5.17 5.22 5.07 100-500.... 4.20 4.07 3.93 4.99 5.00 5.00 4.99 4.98 5.26 5.26 5.34 4.80 500 and over 4.70 4.32 4.00 5.00 5.00 5.00 5.00 4.99 5.00 5.46 5.49 5.50 5.15 New York: 4.55 4.16 3.95 4.96 4.98 5.00 4.95 4.90 4.93 5.44 5.46 5.42 5.38 Less than 10 4.02 4.01 3.96 4.59 4.82 4.50 4.78 4.88 3.74 4.42 4.97 4.38 3.29 10-50........... 4.06 4.04 3.95 4.80 4.85 4.88 4.91 4.91 4.34 5.15 5.22 5.10 4.90 50-100......... 4.08 4.06 3.91 4.96 4.98 4.99 4.97 4.81 4.98 4.74 5.02 5.02 3.60 100-500.... 4.16 4.05 3.88 4.93 4.97 4.92 4.89 4.97 4.84 5.30 5.32 5.32 5.17 500 and over 4.76 4.25 4.00 4.99 4.99 5.00 5.00 4.85 4.99 5.46 5.46 5.46 5.41 Philadelphia: 4.17 4.07 3.71 4.80 4.85 4.95 4.72 4.71 4.66 5.34 5.42 5.06 5.32 Less than 10 3.80 3.79 3.52 4.53 4.47 4.25 4.55 4.63 3.77 4.53 4.55 4.70 4.35 10-50........... 3.88 3.87 3.54 4.65 4.61 4.97 4.68 4.63 4.39 4.68 4.82 4.73 4.59 50-100......... 4.01 3.99 3.64 4.73 4.90 4.54 4.69 4.50 4.51 4.81 4.69 4.88 4.26 100-500.... 4.07 4.01 3.78 4.75 4.73 4.84 4.74 4.74 4.51 5.13 5.26 4.88 4.95 500 and over 4.66 4.46 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.44 5.47 5.27 5.43 Cleveland: 4.27 4.13 3.93 4.85 4.86 4.96 4.84 4.90 4.49 5.39 5.45 5.10 4.84 Less than 10 3.95 3.95 3.67 4.59 4.56 4.77 4.68 4.44 4.40 4.39 5.04 4.23 4.26 10-50.......... 4.05 4.04 3.77 4.72 4.70 4.62 4.77 4.61 4.47 4.61 4.73 4.56 4.45 50-100......... 4.16 4.13 3.94 4.76 4.82 4.50 4.78 4.85 4.11 5.18 4.89 5.30 4.46 100-500.... 4.18 4.15 4.00 4.94 4.89 4.73 4.96 5.00 4.81 5.00 5.12 4.95 4.24 500 and over 4.45 4.20 4.00 4.99 5.00 5.00 5.00 5.00 4.57 5.45 5.48 5.24 5.19 Richmond; Total............... 4.28 4.20 3.95 4.91 4.96 4.60 4.91 4.84 4.87 5.22 5.30 5.17 5.03 Less than 10 4.04 4.03 3.80 4.73 4.80 4.70 4.71 4.75 4.25 4.74 4.62 4.82 4.38 10-50........... 4.15 4.13 3.90 4.81 4.85 4.93 4.83 4.74 4.68 4.80 4.84 4.84 4.21 50-100........ 4.26 4.22 4.00 4.97 5.00 4.50 4.97 4.93 4.94 5.02 5.15 5.02 4.78 100-500.... 4.31 4.21 3.98 4.98 4.99 4.00 4.95 4.99 4.85 5.29 5.44 5.06 4.88 500 and over 4.40 4.28 4.00 4.98 4.98 4.50 5.00 5.00 4.96 5.27 5.26 5.29 5.17 Atlanta: 4.35 4.27 3.95 4.88 4.87 4.96 4.89 4.83 4.68 5.13 5.19 5.06 4.89 Less than 10 4.25 4.24 3.86 4.80 4.78 4.97 4.84 4.73 4.35 4.86 4.69 5.09 4.04 10-50.......... 4.29 4.28 3.94 4.89 4.89 4.75 4.89 4.90 4.49 4.91 4.85 4.98 4.70 50-100 4.40 4.34 3.89 4.97 4.95 4.97 4.98 4.97 5.32 5.40 5.27 5.00 100-500.... 4.33 4.21 3.99 4.81 4.86 4.74 4.82 4.58 4.75 5.08 5.13 4.98 4.99 500 and over 4.50 4.34 3.92 4.98 4.50 5.00 5.00 5.00 4.47 5.27 5.34 5.15 4.50 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 59 Savings Consumer-type time deposits 1 Business-type time deposits 2 All and Federal Reserve time con­ district and and sumer Savings Other Time Time size of bank savings type de­ Sav­ Sav­ non­ Nego­ de­ Nego­ Non­ de­ (total deposits, de­ time posits Total ings ings nego­ tiable posits, Total tiable nego­ posits, in millions of posits de­ certifi­ bonds tiable CD’s open CD’s tiable open dollars) posits cates CD’s account CD’s account WEIGHTED AVERAGE OF MOST COMMON RATE PAID (per cent) 4.33 4.19 3.91 4.85 4.89 4.95 4.82 4.81 4.89 5.09 5.12 5.02 4.98 All size groups 4.14 4.13 3.69 4.68 4.65 4.87 4.69 4.70 4.56 4.69 4.84 4.67 4.06 Less than 10 4.15 4.13 3.79 4.76 4.76 4.68 4.75 4.79 4.64 4.87 4.96 4.83 4.56 10-50 4.21 4.17 3.89 4.82 4.84 4.86 4.82 4.84 4.71 4.91 4.98 4.91 4.26 50-100 4.24 4.16 3.92 4.87 4.92 4.81 4.86 4.85 4.65 4.93 4.97 4.85 4.71 100-500 4.47 4.25 3.99 4.96 4.97 4.98 4.95 4.86 4.98 5.13 5.15 5.10 5.04 500 and over Boston: 4.35 4.16 3.96 4.90 4.89 5.00 4.81 4.84 4.92 5.13 5.16 5.06 4.89 Total 4.06 4.05 3.92 4.80 4.50 4.66 4.65 4.95 4.89 4.89 4.88 Less than 10 4.13 4.09 3.94 4.85 4.61 5.00 4.87 4.72 4.97 4.94 4.94 4.94 4.93 10-50 4.14 4.10 4.00 4.71 5.00 4.49 4.54 4.80 5.04 5.14 4.85 50-100 4.10 4.01 3.91 4.71 5.00 4.92 4,93 3.93 4.81 4.79 4.92 4.80 100-500 4.61 4.32 4.00 4.99 5.00 5.00 4.97 4.89 5.00 5.19 5.23 5.25 4.89 500 and over New York: 4.46 4.14 3.94 4.93 4.98 5.00 4.89 4.80 4.90 5.19 5.22 5.11 5.06 Total 4.01 4.01 3.95 4.53 4.82 4.00 4.67 4.87 3.71 4.22 4.78 4.16 3.10 Less than 10 4.03 4.01 3.93 4.73 4.82 4.88 4.87 4.73 4.30 4.94 5.04 4.83 4.78 10-50 4.08 4.06 3.91 4.94 4.98 4.99 4.95 4.81 4.91 4.70 4.98 4.98 3.56 50-100 4.09 4.00 3.83 4.88 4.97 4.92 4.76 4.87 4.80 5.03 5.06 5.00 4.96 100-500 4.65 4.24 4.00 4.97 4.99 5.00 4.96 4.74 4.98 5.20 5.23 5.15 5.07 500 and over Philadelphia: 4.13 4.05 3.70 4.76 4.83 4.95 4.68 4.66 4.42 5.02 5.09 4.89 4.96 Total 3.76 3.76 3.49 4.48 4.43 4.25 4.51 4.51 3.64 4.46 4.55 4.45 4.35 Less than 10 3.85 3.84 3.53 4.58 4.57 4.97 4.60 4.63 4.25 4.64 4.82 4.65 4.57 10-50 4.00 3.98 3.64 4.72 4.90 4.50 4.68 4.50 4.31 4.75 4.69 4.79 4.26 50-100 4.04 4.00 3.77 4.72 4.68 4.84 4.71 4.72 4.23 4.84 4.88 4.88 4.52 100-500 4.58 4.45 4.00 4.98 5.00 5.00 5.00 4.85 4.70 5.09 5.13 5.00 5.03 500 and over Cleveland: 4.21 4.12 3.93 4.80 4.81 4.96 4.78 4.83 4.42 5.00 5.01 4.99 4.36 Total 3.91 3.91 3.66 4.49 4.47 4.50 4.59 4.27 4.26 4.36 4.97 4.21 4.26 Less than 10 4.01 4.01 3.77 4.61 4.58 4.62 4.65 4.61 4.45 4.48 4.73 4.35 4.25 10-50 4.15 4.12 3.94 4.73 4.79 4.50 4.77 4.43 4.06 4.88 4.44 5.02 4.07 50-100 4.16 4.14 4.00 4.90 4.87 4.73 4.93 4.93 4.79 4.70 4.78 4.76 3.63 100-500 4.37 4.19 4.00 4.97 4.98 5.00 5.00 4.92 4.34 5.04 5.03 5.22 4.72 500 and over Richmond: 4.25 4.19 3.94 4.88 4.94 4.57 4.88 4.76 4.80 4.98 5.09 4.95 4.59 Total 4.02 4.01 3.80 4.68 4.77 4.70 4.65 4.71 4.22 4.68 4.40 4.82 4.19 Less than 10 4,12 4.11 3.89 4.75 4.79 4.79 4.78 4.68 4.64 4.69 4.68 4.75 4.21 10-50 4.25 4.22 4.00 4.96 5.00 4.50 4.96 4.93 4.94 4.90 4.90 5.01 4.58 50-100 4.28 4.18 3.96 4.95 4.97 4.00 4.95 4.91 4.63 5.17 5.35 4.90 4.65 100-500 4.35 4.28 4.00 4.96 4.98 4.50 5.00 4.77 4.88 4.95 4.96 5,00 4.63 500 and over Atlanta : 4.31 4.26 3.95 4.86 4.84 4.96 4.87 4.80 4.59 4.87 4.93 4.78 4.59 Total 4.24 4.23 3.86 4.77 4.74 4.97 4.80 4.72 4.31 4.60 4.69 4.81 3.65 Less than 10 4.28 4.26 3.93 4.85 4.86 4.75 4.86 4.87 4.35 4.85 4.85 4.91 4.41 10-50 4.37 4.33 3.89 4.94 4.83 4.97 4.98 4.95 4.94 4.90 5.00 4.50 50-100 4.30 4.21 3.99 4.81 4.86 4.74 4.82 4.56 4.64 4.85 4.87 4.84 4.70 100-500 4.43 4.33 3.92 4.95 4.50 5.00 4.93 4.87 4.47 4.90 5.10 4.54 4.50 500 and over For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN □ JANUARY 1968 APPENDIX TABLE 12—AVERAGE INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT MEMBER BANKS ON OCTOBER 31, 1967—CONTINUED Savings Consumer-type time deposits 1 Business-type time deposits 2 Federal Reserve All and ( i t n s o d i t z i m a d s e t l o r i o l l d i l l c f a i e o t r b p n s a a o ) s n n s i d o k t s f , s p a t a o d v im n s i e n i d ­ e t g s s s p c t u t o d i y o m m s p e n i ­ e e t e ­ s r S p a o d v s e in i ­ t g s s Total c c e S i a n r a t t g v e i s f ­ s i­ b S i o n a n g v d s ­ s O n t C n i e a t o D h g b n e o ’ le ­ s r ­ N t C ia e D b go l ’ e s ­ a p c T o o c d p i o s m e e i u ­ t n e s n , t Total N t C ia e D b g l ’ o e s ­ n t N C i e a D o g b n o l ’ e s ­ ­ a p c T o o c d p i s o m e e i u ­ t n e s n , t WEIGHTED AVERAGE OF HIGHEST RATES PAID (per cent) Chicago: Total........... 4,31 4.20 3.86 4.84 4.87 4.50 4.77 4.86 4.93 5.35 5.46 5.08 4.48 Less than 10 4.08 4.08 3.47 4.64 4.64 4.50 4.65 4.59 4.60 4.64 4.69 4.62 4.27 10-50.......... 4.08 4.07 3.68 4.74 4.72 4.50 4.73 4.82 4.57 4.83 4.88 4.83 4.29 50-100......... 4.15 4.13 3.85 4.78 4.83 4.50 4.78 4.89 4.46 4.98 5.10 4.89 4.88 100-500.... 4.26 4.19 3.92 4.87 4.88 4.50 4.90 4.96 4.61 5.13 5.36 4.94 4.57 500 and over 4.53 4.32 3.98 4.95 4.95 4.50 4.80 5.00 5.00 5.43 5.49 5.24 4.37 St. Louis: Total........... 4.27 4.21 3.68 4.75 4.81 4.35 4.74 4.67 4.70 4.89 4.94 4.85 4.15 Less than 10 4.18 4.18 3.49 4.58 4.51 4.54 4.63 4.53 4.70 4.34 4.55 4.24 4.10 10-50.......... 4.20 4.19 3.63 4.69 4.69 4.35 4.68 4.72 4.98 4.76 4.77 4.87 4.43 50-100......... 4.26 4.23 3.74 4.78 4.86 4.76 4.71 4.50 4.60 4.96 4.63 4.00 100-500.... 4.41 4.34 3.84 4.91 4.98 4.36 4.85 4.67 4.00 5.16 5.42 5.00 4.00 500 and over 4.33 4.16 3.68 4.91 4.87 4.00 5.00 4.80 1.00 4.88 4.87 4.92 Minneapolis: Total........... 4.45 4.37 3.46 4.81 4.86 4.72 4.77 4.76 4.75 5.36 5.45 5.07 4.28 Less than 10 4.24 4.24 2.98 4.75 4.75 5.00 4.75 4.72 4.68 4.67 4.75 4.56 10-50........... 4.40 4.38 3.54 4.82 4.86 4.50 4.80 4.74 4.78 4.91 5.06 4.85 4.28 50-100......... 4.34 4.31 3.51 4,64 4.70 4.58 4.68 4.95 5.07 4.65 100-500.... 4.57 4.46 3.68 4.88 4.84 4.92 5.00 5.42 5.50 4.97 500 and over 4.85 4.58 3.72 5.00 5.00 5.00 5.00 5.48 5.50 5.38 Kansas City: Total........... 4.48 4.40 3.95 4.93 4.95 4.98 4.93 4.91 4.90 5.27 5.31 5.14 4.68 Less than 10 4.38 4.38 3.86 4.83 4.83 4.67 4.84 4.81 4.64 4.95 5.02 4.86 4.17 10-50........... 4.42 4.40 3.94 4.95 4.98 4.66 4.96 4.93 4.85 5.26 5.34 5.19 4.00 50-100......... 4.51 4.44 4.00 4.99 5.00 5.00 4.99 4.99 4.98 5.21 5.29 4.99 5.50 100-500.... 4.58 4.39 3.98 4.99 4.99 5.00 5.00 4.98 4.58 5.29 5.32 5.18 4.71 500 and over Dallas; Total............... 4.63 4.38 3.99 4.95 4.92 4.84 4.95 4.96 4.96 5.38 5.41 5.20 5.22 Less than 10 4.46 4.44 3.97 4.90 4.84 4.88 4.91 4.91 4.92 4.98 5.10 4.84 4.65 10-50.......4....49 4.42 3.99 4.96 4.97 4.50 4.97 4.95 4.93 5.24 5.25 5.25 4.84 50-100......... 4.60 4.41 4.00 4.97 4.98 4.97 4.94 4.99 5.28 5.28 5.28 5.28 100-500.... 4.51 4.30 4.00 4.94 4.84 4.50 4.94 4.96 4.78 5.23 5.24 5.16 4.87 500 and over 4.96 4.37 4.00 4.99 4.98 5.00 5.00 5.00 5.50 5.50 5.00 5.45 San Francisco: Total........... 4.37 4.22 4.00 5.00 5.00 5,00 5.00 5.00 4.99 5.35 5.41 5.24 5.26 Less than 10 4.28 4.27 3.99 4.98 4.99 5.00 4.98 4.98 4.54 4.93 4.75 5.12 4.00 10-50...... 4.34 4.31 4.00 4.99 4.99 4.98 4.99 4.98 4.98 5.25 5.24 5.30 5.00 50-100......... 4.33 4.27 4.00 5.00 5.00 5.00 5.00 4.98 5.00 5.26 5.27 5.18 5.29 100-500.... 4.39 4.29 4.00 5.00 5.00 5,00 5.00 4.99 4.98 5.30 5.33 5.22 5.07 500 and over 4.37 4.20 4.00 5.00 5.00 5.00 5.00 5.00 5.00 5.35 5.42 5.25 5.27 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 61 Savings Consumer-type time deposits 1 Business-type lime deposits 2 AU and Federal Reserve time con­ district and s p a a v o d n i s e n d i ­ t g s s s p u t t o d i y m m s p e i ­ e e e ts r S p a d o v s e in i ­ t g s s Total c c e S i a n r a t t g v e i s f ­ s i­ b S i o n a n g v d s ­ s O t n C n ia e t o D h g b n o e l ’ ­ e s r ­ N t C ia e D b g l o ’ e s ­ a p c T o o c d p i s o m e e i u ­ t n e s n , t Total N t C ia e D b g l ’ o e s ­ n t N C i e a o D g b n o l ’ e s ­ ­ a p c T o o c d p i s o m e e i u t ­ n e s n , t (t i s n o i t z m a d e l o i o l l d l l f i a e o r p b n s o a ) s s n i o k ts f , WEIGHTED AVERAGE OF MOST COMMON RATE PAID (per cent) Chicago: 4.27 4.18 3.86 4.81 4.85 4.50 4.72 4.79 4,92 5.04 5.09 4.93 4.47 Total 4.05 4.05 3.46 4.59 4.58 4.50 4.60 4.57 4.52 4.53 4.60 4.49 4.27 Less than 10 4.05 4.03 3.66 4.68 4,67 4.50 4.67 4.72 4.51 4.70 4.70 4.71 4.29 10-50 4,14 4.12 3.85 4.76 4.83 4.50 4.74 4.88 4.46 4.92 5.00 4.87 4.85 50-100 4.23 4.18 3.92 4.84 4.87 4.50 4.85 4.92 4.55 4.82 4.94 4.70 4.57 100-500 4.47 4.31 3.98 4.94 4.95 4.50 4.80 4.71 5.00 5.11 5.12 5.11 4.34 500 and over St. Louis: 4.25 4.20 3.67 4.73 4.80 4.35 4.73 4.65 4.59 4.77 4.85 4.66 4.02 Total 4.14 4.14 3.48 4.53 4.43 4.54 4.60 4.50 4.52 4.14 4.46 3.85 4.10 Less than 10 4.19 4,18 3.62 4.69 4.69 4.35 4.68 4.71 4.96 4.71 4.71 4.83 4.38 10-50 4.22 4.23 3.74 4.77 4.86 4.76 4.61 4.50 4.11 4.96 4.05 3.57 50-100 4.39 4.34 3,84 4.91 4.98 4.36 4.85 4.67 4.00 4.90 4.95 5.00 4.00 100-500 4.32 4.16 3.68 4.91 4.87 4.00 5.00 4.80 4.84 4.84 4.84 500 and over Minneapolis: 4.40 4.36 3.45 4.79 4.85 4.72 4.74 4.72 4.65 4.91 4.93 4.87 4.28 Total 4.22 4.22 2.97 4.72 4.73 5.00 4.70 4.72 4.68 4.67 4.75 4.56 Less than 10 4.38 4.37 3.54 4.80 4.84 4.50 4.77 4.73 4.58 4.83 4.95 4.78 4.28 10-50 4.33 4.30 3.51 4.63 4.70 ..............4..58 4.58 4.78 4.83 4.65 ............... 50-100 4.54 4.46 3.68 4.88 4.84 4.92 5.00 5.15 5.18 4.97 100-500 4.68 4.57 3.72 4.99 5.00 4.83 5.00 4.92 4.90 5.00 500 and over Kansas City: 4.44 4.38 3.94 4.90 4.94 4.78 4.91 4.86 4.88 5.03 5.06 4.91 4.61 Total 4,36 4.36 3.85 4.79 4.82 4.57 4.80 4.75 4.52 4.88 4.91 4.86 4.17 Less than 10 4.41 4.39 3.94 4.93 4.96 4.66 4.95 4.90 4.85 5.09 5.15 5.05 4.00 10-50 4.48 4.43 4.00 4.96 5.00 5.00 4.97 4.93 4.98 5.03 5.08 4.87 5.50 50-100 4.51 4.37 3.98 4.94 4.99 4.73 4.96 4.92 4.58 5.02 5,06 4.89 4.62 100-500 500 and over Dallas: 4.55 4.36 3.99 4.90 4.90 4.83 4.92 4.88 4.95 5.12 5.13 5.09 4.96 Total 4.44 4.42 3.97 4.86 4.76 4.88 4.87 4.88 4.91 4.95 5.05 4.84 4.65 Less than 10 4.47 4.41 3.98 4.93 4.95 4.50 4.96 4.92 4.91 5.10 5.10 5.11 4.84 10-50 4.55 4.40 4.00 4.94 4.98 4.97 4.87 4.99 5.08 4.98 5.28 4.97 50-100 4.40 4.25 4.00 4.81 4.83 4.00 4.78 4.81 4.54 4.90 4.91 4.85 4.74 100-500 4.81 4.35 4.00 4.95 4.98 5.00 4.92 5.00 5.22 5.23 5.00 5.08 500 and over San Francisco: 4.32 4.21 4.00 4.96 5.00 5.00 4.96 4.86 4.93 5.05 5,02 5.10 5.05 Total 4.28 4.27 3.99 4.97 4.97 5.00 4.98 4.96 4.54 4.87 4.73 5.01 4.00 Less than 10 4.31 4.29 3.98 4.97 4.99 4.98 4.97 4.95 4.97 5.02 5.04 5.00 4.69 10-50 4.32 4.26 4.00 4.97 5.00 5.00 5.00 4.88 5.00 5.13 5.13 5.03 5.29 50-100 4.34 4.27 4.00 4.93 5.00 5.00 4.94 4.73 4.92 4.91 4.94 4.75 4.92 100-500 4.32 4.20 4.00 4.96 5.00 5.00 4.96 4.89 4.93 5.06 5.03 5.11 5.06 500 and over i Deposits in denominations of less than $100,000. a Deposits in denominations of $100,000 or more. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

62 FEDERAL RESERVE BULLETIN □ JANUARY 1968 APPENDIX TABLE 13—CONSUMER-TYPE TIME DEPOSITS, IPC, HELD BY MEMBER BANKS ON OCTOBER 31, 1967, BY SIZE OF BANK AND BY MAXIMUM RATE PAID ON ANY ONE TYPE Maximum rate paid (per cent) Maximum rate paid (per cent) Group Total Total 4.00 or 4.01­ 4.26­ 4.51­ 4.76­ 4.00 or 4.01­ 4.26­ 4.51­ 4.76­ less 4.25 4.50 4.75 5.00 less 4.25 4.50 4.75 5.00 NUMBER OF BANKS MILLIONS OF DOLLARS 1 All banks 5,732 842 48 1,631 129 3,082 31,587 606 41 4,765 417 25,759 Size of bank (total de­ posits, in mill ions of dol­ lars): Less than 10................ 3,014 555 35 996 51 1,377 3,430 251 26 1,272 46 1,834 10-50............................. 2,049 246 12 542 61 1,188 7,340 237 12 2,068 175 4,848 50-100........................... 272 16 56 9 191 2,536 11 647 63 1,815 100-500......................... 22 35 8 236 5,890 79 (2) 583 132 5,094 500 and over............... 3 2 90 12,390 28 (2) 12.167 F.R. district: Boston.................. 190 26 25 16 122 765 3 13 9 740 New York........... 348 72 6 43 8 219 3,542 15 63 9 3,453 Philadelphia........ 347 66 6 166 15 94 2,027 53 5 543 161 1,265 Cleveland............ 448 136 5 125 14 168 2,106 90 7 313 34 1,662 Richmond........... 355 100 9 56 6 184 1,483 68 5 69 10 1,332 Atlanta................. 522 104 74 13 331 2,190 113 229 24 1,824 Chicago........................ 963 96 7 428 21 411 6,956 88 9 1,795 59 5,006 St. Louis....................... 454 76 4 233 130 1,844 105 6 668 34 1,031 Minneapolis................ 491 23 3 209 245 2,412 30 6 752 47 1,577 Kansas City................. 806 86 4 184 5 527 2,012 29 I 202 5 1,775 Dallas........................... 614 49 1 82 9 473 1,669 10 (2) 115 24 1,520 San Francisco............. 194 8 2 6 178 4,578 2 (2) 3 4,573 1 Includes a small amount of deposits outstanding on October 31, Note.—Consumer-type time deposits includes the following instru­ 1967, in banks that no longer issue certain consumer-type instruments ments issued in denominations of less than $100,000: savings certifi­ and are not included in the number of issuing banks. cates, savings bonds, other nonnegotiable and negotiable CD's, and 2 Omitted to avoid individual bank disclosure. time deposits, open account. Dollar amounts may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Revised Guidelines For Banks and Nonbank Financial Institutions On January 1, 1968, a new program to re­ ceiling on each reporting date by the amount duce the deficit in the nation’s balance of of the reduction in term loans to Western payments by a target amount of $3 billion Europe during the preceding month. in 1968 was announced by the President of All banks also are asked to reduce the the United States. An integral part of the amount of short-term credit outstanding program is a substantial tightening of re­ (loans with maturities of 1 year or less) to straint on foreign lending by financial in­ developed countries of continental Western stitutions. Accordingly, the Board of Gov­ Europe by 40 per cent of the amount of ernors has revised the guidelines for banks such credit outstanding on December 31, and other financial institutions as follows: 1967. This reduction is to be achieved at a minumum rate of 10 per cent per quarter, THE REVISED 1968 PROGRAM FOR cumulative, and the ceiling will be reduced COMMERCIAL BANKS correspondingly. That is, each bank is asked at the end of each quarter to reduce its ceil­ The 1968 ceiling for banks accounting for ing for 1968 by 10 per cent of the amount about 95 per cent of the 1967 ceiling will of short-term credits to developed countries be 103 per cent of the end-of-1964 base. of Western Europe outstanding on Decem­ Banks whose target ceiling for 1967 was ber 31, 1967, and to achieve at least an less than 2 per cent of total assets as of equivalent reduction in such credits during December 31, 1966, may take the latter the quarter. figure as their 1968 ceiling. However, such These revisions in the guidelines are de­ banks are asked to use not more than onesigned to induce a net inflow of capital to third of the amount by which this figure the financial institutions during 1968. Since exceeds their 1967 ceiling during the course the major effects of the revisions are focused of 1968. These banks are requested not to on the developed countries of continental exceed their 1967 ceiling, even within the Western Europe, it should be possible to limitation set forth above, except to make achieve this inflow without endangering priority credits, that is, export credits or other important national objectives, such as credits to developing countries. export promotion and the supplying of capi­ All banks are requested to reduce the tal to the developing countries. amount of term loans (loans with original maturities of more than 1 year) to residents THE REVISED 1968 PROGRAM FOR of developed countries of continental West­ NONBANK FINANCIAL INSTITUTIONS ern Europe by not renewing such loans at maturity, and by not relending the repay­ The revised program for 1968 differs from ments of such loans to other residents of the program announced on November 16, those countries. Each bank will reduce its 1967, in the following ways: 63 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN □ JANUARY 1968 1. All institutions are now requested to 1. Among the types of foreign assets cov­ reduce their holdings of foreign assets cov­ ered by the program, institutions are still re­ ered by this revised program by 5 per cent quested to give absolute priority to credits or more during 1968, with the target reduc­ that represent financing essential to the sale tion based on the amount of such assets held of U.S. goods abroad. on December 31, 1967. 2. Institutions may continue to invest in 2. Institutions generally are expected to noncovered foreign assets as desired. reduce their holdings of liquid funds abroad 3. Only financial institutions holding cov­ to zero during 1968, except to the extent ered assets of $500,000 or more, or total that minimum working balances are re­ foreign assets of $5 million or more, are quired for the conduct of foreign business asked to file quarterly reports with their activities. Federal Reserve Bank. However, institu­ 3. Institutions are expected also to re­ tions with holdings below these amounts are frain from making any new investments, in also expected to abide by the provisions of either debt or equity form, in the developed the program. countries of continental Western Europe, 4. The group of institutions covered by except for new credits judged essential to the the nonbank guidelines continues to include financing of U.S. exports as evidenced by trust companies and trust departments of exemption from the Interest Equalization commercial banks, mutual savings banks, Tax that otherwise would apply. insurance companies, investment compa­ 4. The definition of covered assets is nies, finance companies, employee retire­ changed: (a) to exclude foreign assets of ment and pension funds, college endow­ types otherwise covered by the program but ment funds, and charitable foundations. acquired as “free delivery” items after De­ Also included are the U.S. branches of for­ cember 31, 1967; and (b) to provide that eign insurance companies and of other covered equity securities held at the begin­ foreign nonbank financial corporations. In­ ning of 1968 be carried throughout 1968 at the values reflected in the report (on vestment underwriting firms, securities bro­ Form FR 392R-68) filed for December 31, kers and dealers, and investment counseling 1967, and that covered equities purchased firms also are covered with respect to for­ during 1968 be carried at cost. eign financial assets held for their own ac­ The revised program is unchanged from count and are requested to inform their the 1968 program announced earlier, in the customers of the program in those cases following ways: where it appears applicable, Guidelines for Banks 1. Ceiling and reporting outside the United States, irrespective of cit­ izenship, except their agencies or branches A. Meaning of terms: located within the United States; branches, (1) “Foreigners” include individuals, subsidiaries, and affiliates of U.S. banks and partnerships, and corporations domiciled other U.S. corporations that are located in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 65 foreign countries; and any government of a of Berlin, Tibet, Union of Soviet Socialist foreign country or official agency thereof Republics and the Kurile Islands, Southern and any official international or regional Sakhalin, and areas in East Prussia that are institution created by treaty, irrespective of under the provisional administration of the location. Union of Soviet Socialist Republics, and (2) “Foreign long-term securities” are any part of Vietnam that is dominated or those issued without a contractual maturity controlled by international communism. or with an original maturity of more than 1 B. Specific inclusions and exclusions in year from the date of issuance. calculating the ceiling: (3) “Other claims” include all long­ term claims other than securities, real as­ (1) Claims on foreigners should be in­ sets, net investment in and advances to for­ cluded without deduction of any offsets. eign branches and subsidiaries, and all Foreign long-term securities held for banks’ short-term claims (such as deposits, money own account should be included. Foreign market instruments, customers’ liability on customers’ liability for acceptances exe­ acceptances, and loans). cuted should be included whether or not the (4) “Nonexport credit” means a foreign acceptances are held by the reporting bank. credit other than one that arises directly out Participations purchased in loans to foreign­ of the financing of exports of U.S. goods or ers (except loans guaranteed or participated services or that is reasonably necessary for in by the Export-Import Bank or insured the financing of such exports. by the Foreign Credit Insurance Associa­ (5) “Developed countries” are Abu tion) should be included; also, foreign as­ Dhabi, Australia, Austria, the Bahamas, sets sold to U.S. residents, including the Bahrain, Belgium, Bermuda, Canada, Export-Import Bank, with recourse should Denmark, France, Germany (Federal Re­ be included. public), Hong Kong, Iran, Iraq, Ireland, (2) Contingent claims, unutilized cred­ Italy, Japan, Kuwait, Kuwait-Saudi Arabia its, claims held for account of customers, Neutral Zone, Libya, Liechtenstein, Lux­ acceptances executed by other U.S. banks embourg, Monaco, Netherlands, New Zea­ and loans guaranteed or participated in by land, Norway, Portugal, Qatar, Republic of the Export-Import Bank or insured by the South Africa, San Marino, Saudi Arabia, Foreign Credit Insurance Association, Spain, Sweden, Switzerland, and the United should be excluded. Kingdom. Also to be considered “devel­ C. Ceiling oped” are the following countries: Albania, Bulgaria, any part of China that is domi­ (1) Foreign credits included in the ceil­ nated or controlled by international com­ ing are a bank’s total claims on foreigners munism, Cuba, Czechoslovakia, Estonia, held for own account, with the specific in­ Hungary, any part of Korea that is domi­ clusions and exclusions set forth in Section nated or controlled by international com­ B above. The 1968 ceiling for a bank re­ munism, Latvia, Lithuania, Outer Mon­ porting on Form F.R. 391 on October 31, golia, Poland (including any area under its 1967, and that had foreign assets of $500,­ provisional administration), Rumania, So­ 000 or more on that date is either: (1) 103 viet Zone of Germany and the Soviet sector per cent of the amount of foreign assets held Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN □ JANUARY 1968 on December 31, 1964, or (2) an amount quate to permit the bank to meet reasonable equal to (a) its 1967 ceiling under the priority credit demands of existing custom­ guidelines issued in December 1966 plus ers or originating in its normal trade area. (b) one-third of the difference between that In discussing the ceiling of such a bank, amount and 2 per cent of the bank’s total the Federal Reserve Bank will ascertain the assets as of December 31, 1966, whichever bank’s previous history in foreign transac­ is larger. tions, including acceptance of foreign de­ (2) All banks are requested, effective posits or handling foreign collections, and from the date of the announcement of these the reasons why the bank considers that it revised guidelines, to refrain from renewing should engage in foreign transactions. term loans (those with original maturities D. Reporting of more than 1 year) to residents of devel­ oped countries of continental Western Eu­ (1) Banks that report on Treasury For­ rope, or relending amounts received in re­ eign Exchange Forms B-2 or B-3, or that payment of such loans, except to make bona have been granted special ceilings under fide export credits. The ceiling of each bank provisions of these guidelines, should file a receiving such repayments will be adjusted Monthly Report on Foreign Claims (Form monthly by deducting therefrom the dollar F.R. 391/68R) with the Federal Reserve amount of those repayments. Bank of the Federal Reserve district in (3) All banks are requested further to which the bank is located. reduce the amount of outstanding short­ (2) Copies of Form F.R. 391/68R are term credits (credits with original maturi­ available at the Federal Reserve Banks. ties of 1 year or less) to residents of de­ veloped countries of continental Western 2. Loans guaranteed by the Export-Import Europe by 40 per cent of the amount of Bank such credits held on December 31, 1967, Loans guaranteed or participated in by during the course of 1968. This reduction the Export-Import Bank or insured by the should be made at a rate of at least 10 per­ Foreign Credit Insurance Association are centage points in each quarter; the ceiling excluded from the ceiling. The role of the for each bank will be reduced correspond­ Export-Import Bank within the framework ingly, that is, quarterly by an amount equal of the President’s program is coordinated by to 10 per cent of the amount outstanding the National Advisory Council for Interna­ on December 31, 1967. tional Monetary and Financial Policies. (4) Any bank that sells a foreign asset to a U.S. resident, including the Export­ Import Bank, without recourse should re­ 3. Credits in excess of ceiling duce its ceiling by an equivalent amount. A bank would not be considered as act­ (5) A bank that had no ceiling in 1967, ing in a manner inconsistent with the pro­ or that had foreign assets of $500,000 or gram if it temporarily exceeds its ceiling as less on October 31, 1967, may discuss with a result of the extension of bona fide export the Federal Reserve Bank of the Federal credits. Reserve district in which it is located, the The bank should, however, refrain from possibility of adopting a special ceiling ade­ making new extensions of nonpriority cred- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 67 its so as to reduce its claims on foreigners 5. Trust departments to an amount within the ceiling as quickly Trust departments of commercial banks as possible. It should also take every oppor­ should follow the guidelines with respect to tunity to withdraw or reduce commitments, nonbank financial institutions. including credit lines, that are not of a firm nature and to assure that drawings under credit lines are kept to normal levels and 6. Transactions for the account of customers usage. At time of renewal, each credit line A bank should bear in mind the Presi­ should be reviewed for consistency with the dent’s balance of payments program when program. acting for the account of a customer. A bank whose foreign credits are in ex­ Although the bank is obliged to follow a cess of the ceiling will be invited periodically customer’s instructions, it should to the ex­ to discuss with the appropriate Federal Re­ tent possible discourage customers from serve Bank the steps it has taken and pro­ placing liquid funds outside the United poses to take to reduce its credits to a level States. A bank should not place with a within the ceiling. customer foreign obligations that, in the absence of the voluntary credit restraint 4. Loan priorities program, it would have acquired or held for Within the ceiling, absolute priority its own account. should be given to bona fide export credits. Credits that substitute for cash sales or for 7. Foreign branches sales customarily financed out of nonbank or foreign funds are not entitled to priority. The voluntary credit restraint program is With respect to nonexport credits, banks not designed to restrict the extension of should give the highest priority to loans to foreign credits by foreign branches if the developing countries and should avoid re­ funds utilized are derived from foreign strictive policies that would place an undue sources and do not add to the outflow of burden on Canada, Japan, and the United capital from the United States. Kingdom. Total claims of a bank’s domestic offices A bank adopting a 1968 ceiling equal on its foreign branches (including perma­ to 2 per cent of its total assets on December nent capital invested in as well as balances 31, 1966, will be expected to restrict the due from such branches) represent bank use of any excess over its 1967 ceiling to credit to nonresidents for the purposes of priority credits (that is, export credits and the program. credits to developing countries) originating among the bank’s regular customers or resi­ 8. ‘‘Edge Act" corporations dents of its trade territory. That is, subject to the limitations set forth in Guideline “Edge Act” and “Agreement” corpora­ 1C(1), holdings of foreign credits on any tions are included in the voluntary credit reporting date should not exceed the 1967 restraint program. Foreign loans and invest­ ceiling by more than the increase in hold­ ments of such corporations may be com­ ings of priority credits between October 31, bined with those of the parent bank, or a 1967, and the reporting date. separate ceiling may be adopted for the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BULLETIN □ JANUARY 1968 parent bank and each such subsidiary cor­ (A) Loans to U.S. residents—individ­ poration. If such corporation is owned by a uals as well as corporations—that will aid bank holding company, its foreign loans the borrower in making new foreign loans and investments may be combined for pur­ or investments inconsistent with the Presi­ poses of the program with any one or all dent’s program. Banks should avoid making of the banks in the holding company group. new loans that would directly or indirectly enable borrowers to use funds abroad in a manner inconsistent with the Department 9. U.S. branches and agencies of foreign of Commerce program or with the guide­ banks lines for nonbank financial institutions. Branches and agencies of foreign banks (B) Loans to U.S. subsidiaries and located in the United States are requested branches of foreign companies that other­ to act in accordance with the spirit of the wise might have been made by the bank to domestic commercial bank voluntary credit the foreign parent or other foreign affiliate restraint program. of the company, or that normally would have been obtained abroad. 10. Loans to U.S. residents and substitution of domestic credit for credit from foreign 11. Management of a bank’s liquid funds sources A bank should not place its own funds There are a number of situations in abroad for short-term investment purposes, which loans to domestic customers, individ­ whether such investments are payable in ual as well as corporate, may be detrimen­ foreign currencies or in U.S. dollars. This tal to the President’s balance of payments does not, however, call for a reduction in program and hence should be avoided. necessary working balances held with Examples are: foreign correspondents. Guidelines for Nonbank Financial Institutions Through the end of calendar year 1968, and liquid money market claims on foreign each institution is requested to reduce its obligors, generally defined to include mar­ aggregate holdings of “covered” foreign ketable negotiable instruments maturing in financial assets to 95 per cent or less of its 1 year or less. “adjusted base-date holdings.” 2. All other claims on foreign obligors Covered foreign financial assets, subject written to mature in 10 years or less at date to the guideline ceiling, include the follow­ of acquisition. This category includes all ing types of investments, except for “free bonds, notes, mortgages, loans, and other delivery” items received after December 31, credits, regardless of country of origin. Ex­ 1967: cluded are bonds and notes of international 1. Foreign bank deposits, including de­ institutions of which the United States is a posits in foreign branches of U.S. banks, member, and loans guaranteed or partici- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 69 pated in by the Export-Import Bank or in­ ings of covered foreign assets as of Decem­ sured by the Foreign Credit Insurance Asso­ ber 31, 1967; (2) minus, equity securities ciation, regardless of maturity. of companies domiciled in developed coun­ 3. Net financial investment in foreign tries (except Canada and Japan),1 that are branches, financial subsidiaries, and affili­ included in (1) but had been sold to Ameri­ ates, located in developed countries other can investors prior to the current quarter; than Canada and Japan.1 Such financial in­ (3) plus, or minus, the difference between vestment includes payments into equity and sales proceeds and “carrying” value of other capital accounts of, and net loans and covered equities sold prior to the current advances to, foreign corporations engaged quarter to other than American investors principally in finance, insurance, or real or in other than U.S. markets. On each estate activities, in which the U.S. institu­ reporting date in 1968, “carrying” value tion has an ownership interest of 10 per of covered equities should be the value cent or more. Excluded are earnings of a reflected in the institution’s report (on Form foreign affiliate if they are directly retained in FR 392R-68) for December 31, 1967, in the capital accounts of the foreign corpo­ the case of equities held on that date, and ration. it should be cost in the case of equities pur­ 4. Long-term credits of foreign obligors chased after that date. domiciled in developed countries other than “Adjusted” base-date holdings, to which Canada and Japan.1 Included in this cate­ the 95 per cent ceiling applies, are equal gory are bonds, notes, mortgages, loans, and to “base-date” holdings as defined above, other credits maturing more than 10 years with the two types of adjustment for sales after date of acquisition. Excluded are of included covered equities during the bonds of international institutions of which current quarter. the United States is a member. In making foreign loans and investments 5. Equity securities of foreign corpora­ that are subject to the guideline ceiling, in­ tions domiciled in developed countries other stitutions are asked to give absolute priority than Canada and Japan1 except those to credits that represent bona fide financ­ acquired after September 30, 1965, in U.S. ing of U.S. exports, that is, financing markets from American investors. The test necessary to consummate the export sale. At of whether an equity security is covered will the same time, institutions generally are ex­ depend on the institution’s obligation to pay pected to reduce their holdings of foreign the Interest Equalization Tax on acquisi­ liquid funds (both deposits and money tion. Exclusion from covered assets under market instruments) to zero during 1968, this program normally will be indicated even though it entails a reduction in total when, in acquiring an equity security that covered assets considerably larger than 5 otherwise would be covered, the purchasing per cent. However, an institution may main­ institution receives a certificate of prior tain such minimum working balances American ownership, or brokerage confir­ abroad as are needed for the efficient con­ mation thereof. duct of its foreign business activities. In “Base-date” holdings for any reporting addition, institutions are requested to re­ date in 1968 are defined as: (1) total holdfrain from making any new investments, in either debt or equity form, in the developed 1 See Note on p. 71. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

70 FEDERAL RESERVE BULLETIN □ JANUARY 1968 countries of continental Western Europe, countries other than Canada and Japan that except for new credits judged essential to have been acquired in U.S. markets from the financing of U.S. exports as evidenced American investors (see Point 5 above). by exemption from the Interest Equaliza­ Foreign assets of types covered by the tion Tax that otherwise would apply. program and acquired as “free delivery” For some institutions, repatriation of items—that is, in new accounts deposited liquid funds, cessation of new investment with trust companies or trust departments of in the countries of continental Western commercial banks, or as new gifts received Europe, and maximum restraint on reinvest­ by educational institutions—are not now de­ ment of current maturities of other covered fined as covered assets, if they are acquired assets may not be sufficient to reduce total after December 31, 1967. Such assets covered assets by the target objective of 5 should be reported as a memorandum item, per cent or more. In such instances, or when as should loans guaranteed or participated there are other special circumstances—such in by the Export-Import Bank or insured by as the existence at year-end 1967 of firm the Foreign Credit Insurance Association. commitments to invest, or the need to Each nonbank financial institution hold­ accommodate requests for the bona fide ing, on any quarterly reporting date, financing of U.S. exports—an institution covered assets of $500,000 or more, or total may consult with its Federal Reserve Bank foreign financial assets of $5 million or with a view to working out an individually more, is requested to file a statistical report, tailored program for achieving an orderly covering its total holdings on that date, reduction in the institution’s covered foreign with the Federal Reserve Bank of the assets. In the absence of such an arrange­ Federal Reserve district in which its prin­ ment, institutions will be expected to make cipal office is located. The reports are due progress from quarter to quarter on the within 20 days following the close of each reduction targeted for the year as a whole. calendar quarter, and forms may be ob­ Foreign financial assets not covered by tained by contacting the Federal Reserve the guideline are still reportable on the Bank. quarterly statistical reports to the Federal Reserve Banks, but are not subject to the General considerations target reduction. Such noncovered foreign investments include the following: In cooperating in the voluntary foreign 1. Bonds and notes of international in­ credit restraint program, the nonbank finan­ stitutions of which the United States is a cial institutions are requested to refrain member, regardless of maturity. from making loans and investments incon­ 2. Long-term investments in Canada, sistent with other aspects of the President’s Japan, and all developing countries, includ­ balance of payments program. Among ing credit instruments with final maturities these are the following: (1) noncovered of more than 10 years at date of acquisition, credits under this program that substitute direct investment in financial subsidiaries, for loans that commercial banks would have and all equity securities issued by firms made in the absence of that part of the pro­ domiciled in these countries. gram applicable to them; (2) credits to U.S. 3. Equity securities of firms in developed corporate borrowers that would enable them Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 71 to make new foreign loans and investments arrangements to offset foreign borrowing inconsistent with the corporate part of the against foreign investment should be dis­ program; (3) credits to U.S. subsidiaries cussed with the Federal Reserve Bank. and branches of foreign companies that otherwise would have been made to the Note.—Developed countries other than Canada and foreign parent, or that would substitute for Japan: continental Western Europe—Austria, Belgium, funds normally obtained from foreign Denmark, France, Germany (Federal Republic), Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, sources. Norway, Portugal, San Marino, Spain, Sweden, and The voluntary foreign credit restraint pro­ Switzerland; other developed countries are: Abu Dhabi, Australia, the Bahamas, Bahrain, Bermuda, gram for nonbank financial institutions does Hong Kong, Iran, Iraq, Ireland, Kuwait, Kuwaitnot apply to the investment, within the Saudi Arabia Neutral Zone, Libya, New Zealand, Qatar, Republic of South Africa, Saudi Arabia, and country involved, of reserves accumulated the United Kingdom. Also to be considered “devel­ on insurance policies sold abroad, in oped” are the following countries: Albania, Bulgaria, any part of China which is dominated or controlled amounts of up to 110 per cent of such by international communism, Cuba, Czechoslovakia, reserves. Furthermore, in view of the Estonia, Hungary, any part of Korea which is domi­ balance of payments objectives of the pro­ nated or controlled by international communism, Lat­ via, Lithuania, Outer Mongolia, Poland (including any gram, it is noted that covered investments area under its provisional administration), Rumania, of nonbank financial institutions may be Soviet Zone of Germany and the Soviet sector of Berlin, Tibet, Union of Soviet Socialist Republics and permitted to exceed the guideline ceiling to the Kurile Islands, Southern Sakhalin, and areas in the extent that the funds for such invest­ East Prussia which are under the provisional adminis­ tration of the Union of Soviet Socialist Republics, and ment are borrowed in developed countries any part of Vietnam that is dominated or controlled other than Canada and Japan. Any such by international communism. 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 decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was avail­ able 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 September 12 were published in the Bulletins for July, pages 1115-51; August, pages 1326-32; September, pages 1546­ 54; October, pages 1713-20; November, pages 1893-1910; and December, pages 2035-42. The record for the meeting held on October 3, 1967, follows: 72 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 73 MEETING HELD ON OCTOBER 3, 1967 Authority to effect transactions in System Account. Reports at this meeting indicated that underlying economic con­ ditions had strengthened and that prospects were for more rapid growth later in the year, apart from the effects of the strike at a major automobile producer that was now in its fourth week. More complete data confirmed earlier indications that industrial produc­ tion had increased further in August, and while output had prob­ ably declined in September, it appeared likely that growth would resume when the automobile industry returned to full production. Retail sales had continued to rise rapidly in August, according to the advance estimate, and housing starts had edged up. Price increases for industrial commodities continued to be widespread. The latest information tended to support earlier expectations of a substantial increase in real GNP in the third quarter. Also, an acceleration in growth still appeared in prospect for the fourth quarter, when it was expected that final sales would rise consid­ erably further and that business inventories would increase mod­ estly. As before, the expectations for the fourth quarter were based on the assumptions that work stoppages in the automobile industry would be of relatively short duration and limited extent, and that a surcharge on Federal income taxes—which was still pending before Congress—would not go into effect before the end of the year. Average prices of industrial commodities again increased ap­ preciably from mid-August to mid-September, according to pre­ liminary estimates, and the number of announced increases that were to become effective after the latter date suggested that the average would advance further in the following month. The con­ sumer price index, which since March had been rising more rapidly than earlier, increased at a sizable rate in August. Unit labor costs in manufacturing were expected to remain under up- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN □ JANUARY 1968 ward pressure in coming months, when it appeared likely that wage increases would more than offset gains in productivity. The large deficit in the U.S. balance of payments on the “of­ ficial reserve transactions” basis in the second quarter was fol­ lowed by a large surplus in the third quarter as a result of heavy inflows of liquid funds, particularly in July and August, through foreign branches of U.S. banks. The deficit on the “liquidity” basis was estimated to have increased somewhat in the third quarter, although a decline would have been recorded had it not been for certain types of official transactions that had held down the second-quarter deficit. The merchandise trade surplus in­ creased in August as a result of a reduction in imports. Prospects for renewed strength in exports had been enhanced by recent signs of industrial recovery in Germany and Britain, but imports also were expected to rise with expansion in U.S. business activity. In Britain the improvement in exports and in the basic pay­ ments balance that had been hoped for in 1967 had not material­ ized thus far, in part because of the slowdown in economic ac­ tivity on the continent and the balance of payments costs of the Middle East crisis, and sterling remained under pressure in foreign exchange markets. The Bank of Canada had raised its discount rate from 416 to 5 per cent on September 27. This ac­ tion was generally interpreted as a technical adjustment to the sharp increases in market interest rates that had occurred in Canada over the preceding 6 months. On September 22 the U.S. Treasury announced that it would auction $4.5 billion of April and June tax-anticipation bills on October 3, the date of this meeting, for payment on October 9. The Treasury also indicated that it would add $100 million to each of its weekly bill offerings for 13 weeks beginning with the auction of October 9. Since early July the Treasury had raised about $10 billion of new cash through sales of bills—including today’s offering of tax-anticipation bills—and nearly $3 billion through sales of coupon-bearing securities, and it appeared that Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 75 the Treasury would need to raise substantial further amounts of cash in the remaining months of 1967. An announcement was expected in late October of the terms for refunding U.S. Govern­ ment securities maturing in mid-November, of which $2.6 billion were held by the public. System open market operations since the preceding meeting of the Committee had been directed at maintaining steady condi­ tions in the money market. In the 3 weeks ending September 27 free reserves of member banks had averaged about $270 million and member bank borrowings about $85 million, both within the ranges prevailing recently, and the Federal funds rate had aver­ aged about 4 per cent, slightly higher than in July and August. After the preceding meeting of the Committee the market rate on 3-month Treasury bills had risen sharply—reaching 4.60 per cent on September 22—chiefly as a result of market anticipations of additional Treasury bill financing. The bill rate had subse­ quently declined, however, and on the day before this meeting it was 4.40 per cent, only 6 basis points above its level 3 weeks earlier. Rates on other short-term market instruments increased further or remained at advanced levels. In capital markets the volume of new securities offered to the public had moderated recently. Although flotations by State and local governments in September and those in prospect for Oc­ tober were considerably above their reduced August level, the presently estimated volume of new corporate offerings in Sep­ tember and October was only about half the extraordinarily large volume of July and August. Nevertheless, bond yields were sub­ ject to renewed upward pressures, with yields on long-term Treasury bonds rising to levels above their 1966 highs. In part, the pressures in capital markets reflected apprehension over the large cash needs of the Treasury in prospect for the near term. They also reflected concern about developing inflationary pres­ sures, growing doubts about the prospects for congressional en­ actment of the proposed income tax surcharge, and accompany- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN □ JANUARY 1968 ing uncertainties concerning the course of monetary policy. In August interest rates on conventional mortgages on new homes edged up, and secondary-market yields on Federally under­ written mortgages increased. Inflows of funds to nonbank de­ positary-type institutions remained large—although not quite so large in August, after seasonal adjustment, as in the spring and early summer. Demands for business loans at commercial banks were rela­ tively light in early September but they appeared to have picked up around the midmonth tax-payment period. Growth in total time and savings deposits moderated considerably, mainly be­ cause of a sizable reduction in the volume of negotiable CD’s outstanding. Private demand deposits and the money supply changed little, but U.S. Government demand deposits increased further from their June low. According to preliminary estimates, daily-average member bank deposits—the bank credit proxy— rose at an annual rate of 9.5 per cent from August to September, well below the rate of more than 15 per cent earlier in the sum­ mer. Staff projections suggested that if money market conditions remained unchanged the bank credit proxy would rise at an an­ nual rate in the 10 to 13 per cent range from September to Oc­ tober. About half of the expansion was expected to be in U.S. Government deposits, as a result of heavy borrowing by the Treasury during October. Growth in time and savings deposits appeared likely to be at a somewhat more rapid rate than in the preceding month, but less rapid than the average rate earlier in the year. Private demand deposits—and the money supply— were expected to rise only slightly. Many members of the Committee thought that current and prospective inflationary pressures and the rapid rate of bank credit growth in recent months offered strong grounds for seek­ ing somewhat greater monetary restraint at this time. Some mem­ bers also pointed to the unsatisfactory balance of payments situ- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 77 ation as arguing for a firming of monetary policy. The majority believed, however, that these considerations were outweighed by others militating against a change in policy at present. The latter included the desirability of awaiting firmer indications of the probable actions by Congress with respect to Federal taxes and expenditures; the uncertainties regarding the extent and duration of the automobile industry strike; and the risk that under present financial market conditions any firming action at this time would lead to sharply higher interest rates, with possible undesired ef­ fects on financial intermediaries domestically and on the position of sterling in foreign exchange markets. The Treasury’s current bill financing and, more importantly, the November refunding soon to follow also were cited as considerations arguing against a change in monetary policy at this juncture. The Committee concluded that open market operations should be directed at maintaining about the prevailing conditions in the money market, but that operations should be modified, to the extent permitted by Treasury financing, to moderate any appar­ ent tendency for bank credit to expand more than currently ex­ pected. 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 in­ dicate that, apart from the effects of the strike in the automobile industry, underlying economic conditions have strengthened and prospects favor more rapid growth later in the year. Upward pressures on costs persist, average prices of industrial commodities have risen further, and the rate of increase in consumer prices remains high. While there recently have been large inflows of liquid funds from abroad through foreign branches of U.S. banks, the balance of payments continues to reflect a substantial underlying deficit. Bank credit expansion has continued large, although there was some moderation in September from the rapid July-August rate. The volume of corporate bond flotations has slackened, but Federal and State and local government financing demands remain large and most interest rates have on balance moved up somewhat further. The Presi­ dent’s new fiscal program is still pending before Congress. In this situa- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

78 FEDERAL RESERVE BULLETIN □ JANUARY 1968 tion, it is the policy of the Federal Open Market Committee to foster financial conditions, including bank credit growth, conducive to sustain­ able economic expansion, recognizing the need for reasonable price sta­ bility for both domestic and balance of payments purposes. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining about the prevailing conditions in the money market; but operations shall be modified, to the extent permitted by Treasury financing, to moderate any apparent tendency for bank credit to expand significantly more than currently expected. Votes for this action: Messrs. Hayes, Brimmer, Daane, Maisel, Mitchell, Robertson, Sherrill, Swan, and Wayne. Votes against this action: Messrs. Francis and Scanlon. Messrs. Francis and Scanlon dissented from this action because they assessed the balance of considerations at issue differently from the majority and favored seeking greater monetary restraint. In their judgment, in view of the prospects for further price in­ flation the risks in not acting at this time to moderate the rapid growth of bank credit outweighed the various considerations seen as militating against a firmer monetary policy. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material LOTTERY TICKET SALES BY BANKS (d) Nothing contained in this section prohibits a State member bank from accepting deposits or cashing or otherwise handling checks or other negotiable in­ The Act of Congress approved December 15, 1967 struments, or performing other lawful banking services (Public Law 90-203), effective April 1, 1968, for a State operating a lottery, or for an officer or prohibits insured banks and savings and loan employee of that State who is charged with the ad­ ministration of the lottery. associations from fostering or participating in (e) The Board of Governors of the Federal Reserve gambling activities, more particularly in the sale System shall issue such regulations as may be neces­ sary to the strict enforcement of this section and the of lottery tickets. The Act added section 9A to prevention of evasions thereof. the Federal Reserve Act, pertaining to State member banks, and added § 1306 to the Criminal § 1306. PARTICIPATION BY FINANCIAL Code prescribing penalties for violation of the INSTITUTIONS Act. These new sections read as follows: Whoever knowingly violates section 5136A of the SECTION 9A. PARTICIPATION IN LOTTERIES Revised Statutes of the United States, section 9A of PROHIBITED the Federal Reserve Act, section 20 of the Federal Deposit Insurance Act, or section 410 of the National Housing Act shall be fined not more than $1,000 or (a) A State member bank may not— imprisoned not more than one year, or both. (1) deal in lottery tickets; (2) deal in bets used as a means or substitute * « « for participation in a lottery; (3) announce, advertise, or publicize the exis­ tence of any lottery; TAX STATUS OF BANK HOLDING COMPANY (4) announce, advertise, or publicize the exis­ DISTRIBUTIONS tence or identity of any participant or winner, as such, in a lottery. (b) A State member bank may not permit— An Act of Congress approved December 27, 1967 . (1) the use of any part of any of its banking (Public Law 90-225), added a new subsection (e) offices by any person for any purpose forbidden to the bank under subsection (a), or to § 1102 of the Internal Revenue Code of (2) direct access by the public from any of its 1954 relating to special rules for income tax treat­ banking offices to any premises used by any person ment of distributions resulting from the 1966 for any purpose forbidden to the bank under subsec­ tion (a). amendments to the Bank Holding Company Act (c) As used in this section— of 1956. Section 1102 was published in the 1956 (1) The term “deal in” includes making, tak­ ing, buying, selling, redeeming, or collecting. Bulletin at page 451. The new subsection (e) (2) The term “lottery” includes any arrange­ reads as follows: ment whereby three or more persons (the “partici­ pants”) advance money or credit to another in ex­ § 1102. SPECIAL RULES change for the possibility or expectation that one or ❖ * *!' more but not all of the participants (the “winners”) will receive by reason of their advances more than (e) Certain Bank Holding Companies.—This the amounts they have advanced, the identity of the part shall apply in respect of any company which be­ winners being determined by any means which in­ comes a bank holding company as a result of the cludes— enactment of the Act entitled “An Act to amend the (A) a random selection; Bank Holding Company Act of 1956”, approved July (B) a game, race, or contest; or 1, 1966 (Public Law 89-485), with the following (C) any record or tabulation of the result modifications: of one or more events in which any participant has (1) Subsections (a) (3) and (b) (3) of section 1101 no interest except for its bearing upon the possibility shall not apply. that he may become a winner. (2) Subsections (a) (1) and (2) and (b) (1) and (3) The term “lottery ticket” includes any (2) of section 1101 shall apply in respect of distribu­ right, privilege, or possibility (and any ticket, receipt, tions to shareholders of the distributing bank holding record, or other evidence of any such right, privilege, corporation only if all distributions to each class of or possibility) of becoming a winner in a lottery. shareholders which are made— 79 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN □ JANUARY 1968 (A) after April 12, 1965, and deposits of individuals, such as Christmas club ac­ (B) on or before the date on which the Board of counts and vacation club accounts, that are made Governors of the Federal Reserve System makes its under written contracts providing that no withdrawal final certification under section 1101 (e), are pro rata. shall be made until a certain number of periodic de­ For purposes of the preceding sentence, any redemp­ posits have been made during a period of not less tion of stock made in whole or in part with property than 3 months; plus other than money shall be treated as a distribution. (ii) 3 per cent of its other time deposits up to (3) In applying subsections (c) and (d) of section $5 million, plus 6 per cent of such deposits in excess 1101 and subsection (b) of section 1103, the date of $5 million; plus “April 12, 1965” shall be substituted for the date (iii) 12 per cent of its net demand deposits up “May 15, 1955”. to $5 million plus 1216 per cent of such deposits in (4) In applying subsection (d) (3) of section 1101, excess of $5 million. the date of the enactment of this subsection shall be (2) If in a reserve city (except as to any bank treated as being the date of the enactment of this part. located in such a city which is permitted by the Board (5) In applying subsection (b) (2) (A) of section of Governors of the Federal Reserve System, pursuant 1103, the reference to the Bank Holding Company to § 204.2(a)(2), to maintain the reserves specified in Act of 1956 shall be treated as referring to such Act subparagraph (1) of this paragraph)— as amended by Public Law 89-485. (i) 3 per cent of (A) its savings deposits and (B) its time deposits, open account, that constitute deposits of individuals, such as Christmas club ac­ SALARIES OF MEMBERS OF THE FEDERAL counts and vacation club accounts, that are made under written contracts providing that no withdrawal RESERVE BOARD shall be made until a certain number of periodic de­ posits have been made during a period of not less Section 215 of an Act of Congress approved than 3 months; plus (ii) 3 per cent of its other time deposits up to December 16, 1967 (Public Law 90-206), con­ $5 million, plus 6 per cent of such deposits in excess tained a provision which, in effect, amended sec­ of $5 million; plus tion 10 of the Federal Reserve Act by increasing (iii) 1616 per cent of its net demand deposits up to $5 million, plus 17 per cent of such deposits the salaries of the members of the Board, other in excess of $5 million. than the Chairman, from $28,500 to $29,500 per (b) Currency and coin.—The amount of a member bank’s currency and coin shall be counted as reserves annum. The salary of the Chairman remains in determining compliance with the reserve require­ $30,000. ments of paragraph (a) of this section. RESERVES OF MEMBER BANKS FOREIGN INVESTMENT CONTROL The Board of Governors has amended section By Executive Order 11387 (January 1, 1968, 33 204.5 of Regulation D so as to increase the re­ F.R. 47), the President prohibited persons own­ serves that member banks are required to main­ ing 10 per cent or more of a foreign business tain against demand deposits in excess of $5 venture from engaging in transfers of capital million at each bank from 1616 to 17 per cent abroad except as authorized by the Secretary of for reserve city banks and from 12 to 1216 per Commerce, and also authorized the Secretary to cent for other banks. The text of the amended require such persons to repatriate to the United section is as follows: States their earnings from such foreign business ventures and their short-term financial assets SUPPLEMENT TO REGULATION D abroad, including bank deposits. However, the President ordered the Secretary of Commerce to Section 204.5—Supplement exempt from said requirements, to the extent Effective as to member banks in reserve cities at the delineated by the Board of Governors of the opening of business on January 11, 1968, and as to Federal Reserve System, banks and financial insti­ all other member banks at the opening of business on January 18, 1968. tutions certified by the Board as being subject to (a) Reserve percentages.—Pursuant to the provi­ the Federal Reserve foreign credit restraint pro­ sion of section 19 of the Federal Reserve Act and § 204.2(a) and subject to paragraph (b) of this section, gram. the Board of Governors of the Federal Reserve Sys­ On January 2, 1968, the Board transmitted to tem hereby prescribes the following reserve balances the Secretary of Commerce the letter set forth which each member bank of the Federal Reserve System is required to maintain on deposit with the below, which certified that banks and financial Federal Reserve Bank of its district: institutions of the kinds described therein are (1) If not in a reserve city— subject to said program, the terms of which are (i) 3 per cent of (A) its savings deposits and (B) its time deposits, open account, that constitute stated in the revised Guidelines issued by the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 81 Board of Governors January 1, 1968.* The Board ment or undertaking with the Board of Governors under section 25 of said Act (so-called “Agree­ delineated for exemption all banks and financial ment corporations”). institutions within the enumerated categories, with 11. United States branches of foreign banks and the exception of any bank or financial institution financial institutions of the kinds described in the foregoing enumeration. that is subject to the reporting provisions of the Guidelines and fails to report in substantial com­ In accordance with the provisions of said section 1(c), the Board of Governors delineates for exemp­ pliance with those reporting provisions. tion from the provisions of section 1 of said Executive In accordance with the President’s Order, the Order all banks and financial institutions of the cate­ “Foreign Direct Investment Regulations” of the gories enumerated above, with the exception of any bank or financial institution that is subject to the re­ Secretary of Commerce, published in the Federal porting provisions of said programs but is not report­ Register of January 3, 1968 (33 F.R. 49), ing (or covered by reports filed by another or others on its behalf) in substantial compliance with said exempted banks and financial institutions “to the reporting provisions. extent that may be delineated from time to time The foregoing certification and delineation are by the Board of Governors”. Accordingly, all subject to modification or termination with respect to any category or individual bank or financial institu­ banks and financial institutions included in the tion, in the event that (a) the foreign credit restraint Board’s list are now exempt from said regulations programs referred to in section 1(c) of said Executive Order are so modified that such category or individual of the Secretary of Commerce, subject to the bank or financial institution is no longer subject to specified exception. said programs or (b) the Board of Governors deter­ mines that modification or termination of said deline­ January 2, 1968. ation is necessary or appropriate in the public interest. Any such modification or termination will be com­ The Honorable Alexander B. Trowbridge, municated by the Board to the Secretary of Com­ Secretary of Commerce, merce. Washington, D.C. 20230 Sincerely yours, Dear Mr. Secretary: Wm. McC. Martin, Jr. In accordance with the provisions of section 1(c) of Executive Order 11387, dated January 1, 1968, EXECUTIVE ORDER 11387 the Board of Governors of the Federal Reserve System certifies that the following banks and financial institu­ Governing Certain Capital Transfers Abroad tions are subject to the foreign credit restraint pro­ grams referred to in said section 1(c): By virtue of the authority vested in the President 1. Banks that accept deposits that the depositor has by section 5(b) of the act of October 6, 1917, as a legal right to withdraw on demand. amended (12 U.S.C. 95a), and in view of the con­ 2. Savings banks, both stock and mutual. tinued existence of the national emergency declared 3. Trust companies, and trust departments of banks. by Proclamation No. 2914 of December 16, 1950, and 4. Casualty, fire, marine, and life insurance com­ the importance of strengthening the balance of pay­ panies, both stock and mutual. ments position of the United States during this na­ 5. Management investment companies (both open­ tional emergency, it is hereby ordered: end and closed-end), as defined in sections 4 and 1. (a) Any person subject to the jurisdiction of the 5 of the Investment Company Act of 1940. United States who, alone or together with one or 6. Organizations engaged principally in extending more affiliated persons, owns or acquires as much as credit through consumer, commercial, or indus­ a 10% interest in the voting securities, capital or earn­ trial loans; financing of sales or lease transactions; ings of a foreign business venture is prohibited on or leasing of personal property; or purchasing of ac­ after the effective date of this Order, except as ex­ counts receivable or similar claims. pressly authorized by the Secretary of Commerce, 7. Organizations engaged principally in underwriting from engaging in any transaction involving a direct or or dealing in securities or acting as broker in indirect transfer of capital to or within any foreign securities transactions. country or to any national thereof outside the United 8. Employee retirement and pension funds and simi­ States. ' lar employee-benefit funds. 9. Foundations, trusts, institutions, and other non­ (b) The Secretary of Commerce is authorized to profit organizations principally devoted to the require, as he determines to be necessary or appro­ advancement of art, education, health, philan­ priate to strengthen the balance of payments position thropy, recreation, religion, research, or similar of the United States, that any person subject to the areas of activity directed at contributing to the jurisdiction of the United States who, alone or together general welfare. with one or more affiliated persons, owns or acquires 10. Corporations organized under section 25(a) of as much as a 10% interest in the voting securities, the Federal Reserve Act (so-called “Edge Act capital or earnings of one or more foreign business corporations”) and corporations having an agree- ventures shall cause to be repatriated to the United States such part as the Secretary of Commerce may specify of (1) the earnings of such foreign business * Published at page 63 of this issue of the Bulletin. ventures which are attributable to such person’s invest- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN □ JANUARY 1968 ments therein and (2) bank deposits and other short ORDER UNDER BANK MERGER ACT term financial assets which are held in foreign coun­ tries by or for the account of such person. Any person The Board of Governors issued the following subject to the jurisdiction of the United States is Order and Statement in connection with action required on or after the effective date of this Order, to comply with any such requirement of the Secretary denying an application for the merger of banks: of Commerce. (c) The Secretary of Commerce shall exempt from THE CITIZENS BANKING COMPANY, the provisions of this section 1, to the extent deline­ SANDUSKY, OHIO ated by the Board of Governors of the Federal Re­ serve System (hereinafter referred to as the Board), banks or financial institutions certified by the Board In the matter of the application of The Citizens as being subject to the Federal Reserve Foreign Credit Banking Company for approval of merger with Restraint Programs, or to any program instituted by The Firelands Community Bank. the Board under section 2 of this Order. 2. The Board is authorized in the event that it determines such action to be necessary or desirable to Order Denying Application for Approval strengthen the balance of payments position of the of Merger of Banks United States: (a) to investigate, regulate or prohibit any trans­ There has come before the Board of Governors, action by any bank or other financial institution sub­ pursuant to the Bank Merger Act (12 U.S.C. ject to the jurisdiction of the United States involving a direct or indirect transfer of capital to or within 1828(c)), an application by The Citizens Banking any foreign country or to any national thereof out­ Company, Sandusky, Ohio, a State member bank side the United States; and of the Federal Reserve System, for the Board’s (b) to require that any bank or financial institution prior approval of the merger of that bank and subject to the jurisdiction of the United States shall cause to be repatriated to the United States such part The Firelands Community Bank, Huron, Ohio, as the Board may specify of the bank deposits and under the charter of the former and the title of other short term financial assets which are held in foreign countries by or for the account of such bank The Citizens Firelands Bank. As an incident to or financial institution. Any bank or financial institu­ the merger, the two offices of The Firelands Com­ tion subject to the jurisdiction of the United States munity Bank would become branches of the re­ shall comply with any such requirement of the Board on and after its effective date. sulting bank. Notice of the proposed merger, in 3. The Secretary of Commerce and the Board form approved by the Board, has been published are respectively authorized, under authority delegated pursuant to said Act. to each of them under this Order or otherwise avail­ able to them, to carry out the provisions of this Order, Upon consideration of all relevant material in and to prescribe such definitions for any terms used the light of the factors set forth in said Act, in­ herein, to issue such rules and regulations, orders, cluding reports furnished by the Comptroller of rulings, licenses and instructions, and to take such other actions, as each of them determines to be the Currency, the Federal Deposit Insurance Cor­ necessary or appropriate to carry out the purposes of poration, and the Attorney General on the com­ this Order and their respective responsibilities here­ petitive factors involved in the proposed merger, under. The Secretary of Commerce and the Board may each redelegate to any agency, instrumentality or It is hereby ordered, for the reasons set forth official of the United States any authority under this in the Board’s Statement of this date, that said Order, and may, in administering this Order, utilize the services of any other agencies, Federal or State, application be and hereby is denied. which are available and appropriate. Dated at Washington, D.C., this 2nd day of 4. The Secretary of State shall advise the Secretary January, 1968. of Commerce and the Board with respect to matters under this Order involving foreign policy. The Secre­ By order of the Board of Governors. tary of Commerce and the Board shall consult as necessary and appropriate with each other and with Voting for this action: Chairman Martin, and Gover­ the Secretary of the Treasury. nors Robertson, Mitchell, Maisel, Brimmer, and Sherrill. Absent and not voting: Governor Daane. 5. The delegations of authority in this Order shall not affect the authority of any agency or official pur­ (Signed) Robert P. Forrestal, suant to any other delegation of presidential authority, presently in effect or hereafter made, under section Assistant Secretary. 5(b) of the act of October 6, 1917, as amended (12 [seal] U.S.C. 95a). Statement Lyndon B. Johnson The White House The Citizens Banking Company, Sandusky, 10:45 a.m., Jan. 1, 1968, Ohio (“Citizens Bank"), with total deposits of $34 L.B.J. Ranch. million, has applied, pursuant to the Bank Merger Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 83 Act (12 U.S.C. 1828(c)), for the Board’s prior posits and more than 6 per cent of its loans from approval of the merger of that bank with The the service area 2 of Citizens Bank. Citizens Bank Firelands Community Bank, Huron, Ohio (“Fire­ obtains deposits from the service area of Fire­ lands Bank”), which has total deposits of $10 lands Bank that equal 13 per cent of the deposits million.1 The banks would merge under the charter that Firelands Bank derives from the same area. of Citizens Bank, which is a member of the Federal The loans Citizens Bank obtains from the service Reserve System, and the name of the resulting area of Firelands Bank equal 11 per cent of the bank would be changed to The Citizens Firelands latter’s total loans. The three Sandusky banks to­ Bank. As an incident to the merger, the two gether obtain deposits from the service area of offices of Firelands Bank would become branches Firelands Bank that equal about 40 per cent of the of Citizens Bank, increasing the number of its deposits that Firelands Bank obtains from the same offices to five. area. These three banks also obtain loans from Competition. All offices of the two banks are the service area of Firelands Bank that equal 50 in Erie County, which borders on the south shore per cent of the latter’s total loans. of Lake Erie. Ohio law permits intracounty The proposed merger would eliminate existing branching. and potential competition between Citizens Bank The head office and one branch of Citizens and Firelands Bank, reduce the banking alterna­ Bank are in Sandusky (population 35,000), which tives in the Sandusky/Huron area from five to is the seat of Erie County and the largest city in four and increase Citizens Bank’s share of the total the county. The bank also operates a branch in deposits in the area from 38 per cent to 48 per Perkins Township, which is adjacent to Sandusky. cent. The transaction would have an adverse Firelands Bank operates its head office 10 miles effect on competition. southeast of Sandusky in Huron (population Financial and managerial resources and pros­ 7,000), which is the second largest city in the pects. The banking factors with respect to each county. The bank operates a branch eight miles of the banks proposing to merge are reasonably southeast of Huron in Berlin Heights (population satisfactory, as they would be with respect to the 700). resulting bank. Citizens Bank, with 27 per cent of the deposits Convenience and needs of the communities. The and 22 per cent of the loans, is the largest of the merger would have no appreciable effect on the six commercial banks in Erie County. Firelands banking convenience and needs of the Sandusky Bank, with 8 per cent of the deposits and 8 per community. cent of the loans, ranks fifth. The nearest com­ It is contended that the merger would benefit petitors to Citizens Bank are the other two the Huron community by providing funds needed Sandusky-based banks, which are the second and to meet the local demand for real estate loans. third largest banks in Erie County, holding, re­ This contention overlooks the fact that Citizens spectively, 26 per cent and 21 per cent of the Bank already serves the Huron area, as do the commercial bank deposits. The nearest competitor other two Sandusky banks. The merger would to Firelands Bank is the Huron branch of Erie make an office of Citizens Bank more accessible County Bank, Vermillion, the fourth largest bank for the residents of Huron, especially for those in the county. who do not work or shop in Sandusky, but it Firelands Bank competes with Citizens Bank would also eliminate Firelands Bank as a con­ and with the other two banks in Sandusky. This venient alternative source of banking services. competition is facilitated by the fact that approxi­ Summary and conclusion. In the judgment of mately 80 per cent of the working population of the Board, the adverse effect of the proposed Huron commutes to work, most of them to San­ merger on competition would not be offset by dusky. Further, it is estimated that two-thirds of potential benefits for banking convenience and the retail business of Huron residents is con­ needs. ducted in Sandusky. Accordingly, the Board concludes that the Firelands Bank derives 11 per cent of its de- application should be denied. ’The area from which a bank derives 75 per cent or more of its deposits of individuals, partnerships and 1 Figures are as of June 30, 1967, corporations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements DESIGNATIONS AND APPOINTMENTS OF CHAIRMEN AND FEDERAL RESERVE AGENTS, DEPUTY CHAIRMEN, AND DIRECTORS The Board of Governors of the Federal Reserve System announced its appointments at the Federal Reserve Banks and branches, effective January 1, 1968, unless otherwise indicated. Names in CAPITALS indicate NEW appointments; all others are reappointments. Brief data about each of the new appoint­ ments follow the listings. CHAIRMEN AND FEDERAL RESERVE AGENTS (One-year term, beginning January 1, 1968) Federal Reserve Bank: Boston HOWARD W. JOHNSON, President, Massachusetts Institute of Tech­ nology, Cambridge, Massachusetts. New York Everett N. Case, President, Alfred P. Sloan Foundation, New York, New York. Philadelphia Willis J. Winn, Dean, Wharton School of Finance and Commerce, Uni­ versity of Pennsylvania, Philadelphia, Pennsylvania. Cleveland ALBERT G. CLAY, President, Clay Tobacco Company, Mt. Sterling, Kentucky. Richmond WILSON H. ELKINS, President, University of Maryland, College Park, Maryland. Atlanta EDWIN I. HATCH, President, Georgia Power Company, Atlanta, Georgia. Chicago Franklin J. Lunding, Chairman, Finance Committee, Jewel Companies, Inc., Chicago, Illinois. St. Louis Frederic M. Peirce, President, General American Life Insurance Company, St. Louis, Missouri. Minneapolis Joyce A. Swan, Executive President and Publisher, Minneapolis Star and Tribune, Minneapolis, Minnesota. Kansas City Dolph Simons, Editor and President, The Lawrence Daily Journal-World, Lawrence, Kansas. Dallas Carl J. Thomsen, Senior Vice President, Texas Instruments, Inc., Dallas, Texas. San Francisco Frederic S. Hirschler, Director, The Emporium Capwell Company, San Francisco, California. (Mr. Hirschler died on January 8, 1968.) DEPUTY CHAIRMEN (One-year term, beginning January 1, 1968) Federal Reserve Bank: Boston Charles W. Cole, Former Ambassador, Pelham Road, Amherst, Massa­ chusetts. 84 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 85 DEPUTY CHAIRMEN—Continued New York Kenneth H. Hannan, Executive Vice President, Union Carbide Corporation, New York, New York. Philadelphia Bayard L. England, Chairman of the Board, Atlantic City Electric Com­ pany, Atlantic City, New Jersey. Cleveland Logan T. Johnston, Chairman of the Board, Armco Steel Corporation, Middletown, Ohio. Richmond ROBERT W. LAWSON, JR., Attorney, Steptoe and Johnson, Charleston, West Virginia. Atlanta JOHN C. WILSON, President, Horne-Wilson, Inc., Atlanta, Georgia. Chicago Elvis J. Stahr, President, Indiana University, Bloomington, Indiana. St. Louis Smith D. Broadbent, Jr., Owner, Broadbent Hybrid Seed Company, Cadiz, Kentucky. Minneapolis Robert F. Leach, Attorney, Oppenheimer, Hodgson, Brown, Wolff & Leach, St. Paul, Minnesota. Kansas City Dean A. McGee, Chairman of the Board, Kerr-McGee Corporation, Okla­ homa City, Oklahoma. Dallas Max Levine, Retired Chairman of the Board, Foley’s, Houston, Texas. San Francisco S. Alfred Halgren, Vice President, Carnation Company, Los Angeles, California. FEDERAL RESERVE BANK DIRECTORS 1 (Three-year terms, beginning January 1, 1968) New York James M. Hester, President, New York University, New York, New York. Philadelphia Willis J. Winn (see above). Cleveland J. WARD KEENER, Chairman of the Board, The B. F. Goodrich Com­ pany, Akron, Ohio. Richmond STUART SHUMATE, President, Richmond, Fredericksburg and Potomac Railroad Company, Richmond, Virginia. Atlanta JOHN C. WILSON (see above). Chicago Franklin J. Lunding (see above). St. Louis Smith D. Broadbent, Jr. (see above). Minneapolis Byron W. Reeve, President, Lake Shore, Inc., Iron Mountain, Michigan. Kansas City Dolph Simons (see above). Dallas Carl J. Thomsen (see above). San Francisco Frederic S. Hirschler (died January 8, 1968). ‘Each Federal Reserve Bank has a board of directors each Class of directors expires at the end of each year. consisting of nine members, divided equally into three The Board of Governors designates the Chairmen and classes—Classes A, B, and C. The six A and B directors Deputy Chairmen from among the Class C directors. Each are elected by the member banks, and the three C directors Chairman also serves as the Federal Reserve Agent at his are appointed by the Board of Governors. One term in Bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN □ JANUARY 1968 FEDERAL RESERVE BANK BRANCH DIRECTORS 2 (Three-year terms unless otherwise indicated) Federal Reserve Bank and Branch: New York Buffalo NORMAN F. BEACH, Vice President, Eastman Kodak Company, Rochester, New York (for unexpired portion of term ending December 31, 1968). Robert S. Bennett, General Manager, Lackawanna Plant, Bethlehem Steel Corporation, Buffalo, New York. Cleveland Cincinnati ORIN E. ATKINS, President, Ashland Oil and Refining Company, Ashland, Kentucky. Richmond Baltimore JOHN H. FETTING, JR., President, A. H. Fetting Com­ pany, Baltimore, Maryland. Charlotte William B. McGuire, President, Duke Power Company, Charlotte, North Carolina. Atlanta Birmingham C. Caldwell Marks, Chairman of the Board, Owen-Richards Company, Inc., Birmingham, Alabama. Jacksonville Henry Cragg, Chairman of the Board, Minute Maid Com­ pany, Orlando, Florida. Nashville Robert M. Williams, President, ARO, Inc., Tullahoma, Tennessee. New Orleans ROBERT H. RADCLIFF, JR., President, Southern Indus­ tries Corporation, Mobile, Alabama. Chicago Detroit L. WILLIAM SEIDMAN, General Partner, Seidman & Seidman, Grand Rapids, Michigan. St. Louis Little Rock Reeves E. Ritchie, President, Arkansas Power & Light Com­ pany, Little Rock, Arkansas. Louisville HARRY M. YOUNG, JR., Farmer, Herndon, Kentucky. Memphis James S. Williams, Assistant Vice President, American Greetings Corporation, Osceola, Arkansas. Minneapolis (2-year term) Helena Edwin G. Koch, President, Montana College of Mineral Science and Technology, Butte, Montana. •Federal Reserve Bank branches have either five or of the Federal Reserve System. The announcement of seven directors, of whom a majority are appointed by the appointments of branch directors made by the Federal board of directors of the parent Federal Reserve Bank, Reserve Banks is published on page 90 of this Bulletin. and the others are appointed by the Board of Governors Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 87 Kansas City (2-year terms) Denver Cris Dobbins, President, Ideal Cement Company, Denver, Colorado. Oklahoma City C. W. Flint, Jr., Chairman of the Board, Flint Steel Cor­ poration, Tulsa, Oklahoma. Omaha A. JAMES EBEL, Vice President and General Manager, Cornhusker Television Corporation, Lincoln, Nebraska. Dallas El Paso Gordon W. Foster, Vice President, Farah Manufacturing Company, Inc., El Paso, Texas. Houston M. STEELE WRIGHT, JR., President, Texas Farm Prod­ ucts Company, Nacogdoches, Texas. San Antonio LLOYD M. KNOWLTON, General Manager, Knowlton’s Creamery, San Antonio, Texas. San Francisco Los Angeles NORMAN B. HOUSTON, Senior Vice President, Golden State Mutual Life Insurance Company, Los Angeles, California. (2-year terms) Los Angeles Arthur G. Coons, President Emeritus, Occidental College, Newport Beach, California. Portland FRANK ANDERSON, Rancher, Heppner, Oregon. Salt Lake City Royden G. Derrick, President, Western Steel Company, Salt Lake City, Utah. Seattle William McGregor, Vice President, McGregor Land and Livestock Company, Hooper, Washington. Federal Reserve Bank of Boston 1968. Mr. Beach is Vice President of the Eastman HOWARD W. JOHNSON, Cambridge, Massa­ Kodak Company in Rochester. As a director he chusetts, who has been serving as a Board-ap­ succeeds Carl A. Day, Executive Vice President of pointed director of the Federal Reserve Bank of Bausch & Lomb, Inc., in Rochester, who resigned Boston since January I, 1967, was designated as a director effective December 31, 1967. Chairman of the Bank for the year 1968. Mr. Johnson is President of Massachusetts Institute of Federal Reserve Bank of Cleveland Technology in Cambridge. As Chairman he suc­ ALBERT G. CLAY, Mt. Sterling, Kentucky, ceeds Erwin D. Canham, Editor in Chief of The who has been serving as a Board-appointed direc­ Christian Science Monitor in Boston, whose terms tor of the Federal Reserve Bank of Cleveland as Chairman and as a director expired December since January 1, 1964, was designated Chairman 31, 1967. of the Bank for the year 1968. Mr. Clay is Presi­ dent of Clay Tobacco Company in Mt. Sterling. As Chairman he succeeds Joseph B. Hall, former Federal Reserve Bank of New York Chairman of the Board of The Kroger Company NORMAN F. BEACH, Rochester, New York, in Cincinnati, Ohio, whose terms as Chairman and was appointed a director of the Buffalo Branch of as a director expired December 31, 1967. the Federal Reserve Bank of New York for the unexpired portion of a term ending December 31, J. WARD KEENER, Akron, Ohio, was ap- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

88 FEDERAL RESERVE BULLETIN □ JANUARY 1968 pointed a Class C director of the Federal Reserve Crewe, Jr., Chairman of the Board of Maryland Bank of Cleveland for a three-year term beginning Specialty Wire, Inc., in Cockeysville, Maryland, January 1, 1968. Mr. Keener is Chairman of the whose term as a director expired December 31, Board of The B. F. Goodrich Company in Akron. 1967. As a director he succeeds Joseph B. Hall (see preceding paragraph). Federal Reserve Bank of Atlanta EDWIN I. HATCH, Atlanta, Georgia, who has ORIN E. ATKINS, Ashland, Kentucky, was been serving as a Board-appointed director and appointed a director of the Cincinnati Branch of had been Deputy Chairman of the Federal Reserve the Federal Reserve Bank of Cleveland for a three- Bank of Atlanta since January 1, 1966, was desig­ year term beginning January 1, 1968. He is Presi­ nated Chairman of the Bank for 1968. Mr. Hatch dent of Ashland Oil and Refining Company in is President of Georgia Power Company in At­ Ashland. As a director he succeeds Barney A. lanta. As Chairman he succeeds Jack Tarver, Tucker, President of Burley Belt Fertilizer Com­ President of Atlanta Newspapers, Inc., in Atlanta, pany in Lexington, Kentucky, whose term expired whose terms as Chairman and as a director expired December 31, 1967. December 31, 1967. Federal Reserve Bank of Richmond JOHN C. WILSON, Atlanta, Georgia, was ap­ WILSON H. ELKINS, College Park, Maryland, pointed a Class C director of the Federal Reserve who has been serving as a Board-appointed direc­ Bank of Atlanta for a three-year term beginning tor of the Federal Reserve Bank of Richmond January 1, 1968, and was designated Deputy since January 1, 1963, and had been Deputy Chairman of the Bank for 1968. Mr. Wilson is Chairman of the Bank since January 1, 1967, was President of Horne-Wilson, Inc., in Atlanta. As a designated Chairman for the year 1968. Dr. Elkins director he succeeds Jack Tarver and as Deputy is President of the University of Maryland at Chairman he succeeds Edwin I. Hatch (see para­ College Park. As Chairman he succeeds Edwin graph above). Hyde, President of Miller and Rhoads, Inc., in Richmond, whose terms as Chairman and as a ROBERT H. RADCLIFF, JR., Mobile, Ala­ director expired December 31, 1967. bama, was appointed a director of the New Or­ leans Branch of the Federal Reserve Bank of ROBERT W. LAWSON, JR., Charleston, West Atlanta for a three-year term beginning January 1, Virginia, who has been serving as a Board-ap­ 1968. He is President of Southern Industries Cor­ pointed director of the Federal Reserve Bank of poration in Mobile. As a director he succeeds Richmond since January 1, 1967, was designated Kenneth R. Giddens, President of WKRG-TV, Deputy Chairman of the Bank for the year 1968. Inc., in Mobile. Mr. Lawson is an attorney with Steptoe and John­ son in Charleston. As Deputy Chairman he suc­ Federal Reserve Bank of Chicago ceeds Wilson H. Elkins (see preceding paragraph). L. WILLIAM SEIDMAN, Grand Rapids, STUART SHUMATE, Richmond, Virginia, was Michigan, was appointed a director of the Detroit appointed a director of the Federal Reserve Bank Branch of the Federal Reserve Bank of Chicago of Richmond for a three-year term beginning for a three-year term beginning January 1, 1968. January 1, 1968. He is President of Richmond, Mr. Seidman is a General Partner in Seidman & Fredericksburg and Potomac Railroad Company Seidman, C.P.A., in Grand Rapids. As a director in Richmond. As a director he succeeds Edwin he succeeds James William Miller, President of Hyde (see two paragraphs above). Western Michigan University in Kalamazoo, Michigan. JOHN H. FETTING, JR., Baltimore, Mary­ land, was appointed a director of the Baltimore Branch of the Federal Reserve Bank of Richmond Federal Reserve Bank of St. Louis for a three-year term beginning January 1, 1968. HARRY M. YOUNG, JR., Herndon, Ken­ He is President of A. H. Fetting Company in Balti­ tucky, was appointed a director of the Louisville more. As a director he succeeds Leonard C. Branch of the Federal Reserve Bank of St. Louis Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 89 for a three-year term beginning January 1, 1968. LLOYD M. KNOWLTON, San Antonio, Texas, Mr. Young is a farmer at Herndon. As a director was appointed a director of the San Antonio he succeeds Richard T. Smith, a farmer at Madi­ Branch of the Federal Reserve Bank of Dallas for sonville, Kentucky. a three-year term beginning January 1, 1968. Mr. Knowlton is General Manager of Knowlton’s Federal Reserve Bank of Kansas City Creamery in San Antonio. As a director he suc­ ceeds Harold D. Herndon, an independent oil A. JAMES EBEL, Lincoln, Nebraska, was ap­ operator in San Antonio. pointed a director of the Omaha Branch of the Federal Reserve Bank of Kansas City for a two- Federal Reserve Bank of San Francisco year term beginning January 1, 1968. Mr. Ebel is Vice President and General Manager of Corn- NORMAN B. HOUSTON, Los Angeles, Cali­ husker Television Corporation in Lincoln. As a fornia, was appointed a director of the Los An­ director he succeeds John T. Harris, a merchant geles Branch of the Federal Reserve Bank of San and cattleman at McCook, Nebraska. Francisco for a three-year term beginning January 1, 1968. Mr. Houston is Senior Vice President of Golden State Mutual Life Insurance Company in Federal Reserve Bank of Dallas Los Angeles. M. STEELE WRIGHT, JR., Nacogdoches, Texas, was appointed a director of the Houston FRANK ANDERSON, Heppner, Oregon, was Branch of the Federal Reserve Bank of Dallas for appointed a director of the Portland Branch of the a three-year term beginning January 1, 1968. Mr. Federal Reserve Bank of San Francisco for a two- Wright is President of Texas Farm Products Com­ year term beginning January 1, 1968. Mr. Ander­ pany in Nacogdoches. As a director he succeeds son is a rancher at Heppner. As a director he suc­ Edgar H. Hudgins, a rancher at Hungerford, ceeds Graham J. Barbey, President of the Barbey Texas. Packing Corporation in Astoria, Oregon. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

90 FEDERAL RESERVE BULLETIN □ JANUARY 1968 FEDERAL RESERVE BANK APPOINTMENTS OF BRANCH DIRECTORS1 The Federal Reserve Banks have announced the following appointments of branch directors. The appointments have been made for terms of three years beginning January 1, 1968, except where otherwise indicated. Federal Reserve Bank and Branch New York Buffalo Wilmot R. Craig, Chairman of the Board and President, Lincoln Rochester Trust Company, Rochester, New York. Mr. Craig succeeds J. Wallace Ely, President, Security Trust Company, Rochester, New York. Charles L. Hughes, President, The Silver Creek National Bank, Silver Creek, New York. Mr. Hughes succeeds John D. Hamilton, Chairman of the Board, Marine Midland Chautauqua National Bank, Jamestown, New York. Cleveland Cincinnati Fletcher E. Nyce, President, The Central Trust Company, Cincinnati, Ohio. Mr. Nyce succeeds Kroger Pettengill, President, The First National Bank, Cincinnati, Ohio. Pittsburgh George S. Cook, President, Somerset Trust Company, Somerset, Pennsylvania. Mr. Cook succeeds Edwin H. Keep, President, First National Bank, Meadville, Penn­ sylvania. Richmond Baltimore James J. Robinson, Executive Vice President and Cashier, Bank of Ripley, West Virginia. Mr. Robinson succeeds Martin Piribek, Executive Vice President, The First Na­ tional Bank, Morgantown, West Virginia. Adrian L. McCardell, President, First National Bank of Maryland, Baltimore, Maryland. (Reappointed) Charlotte H. Phelps Brooks, Jr., President and Trust Officer, The Peoples National Bank, Chester, South Carolina. Mr. Brooks succeeds Wallace W. Brawley, President, National Bank of Commerce, Spartanburg, South Carolina. C. C. Cameron, Chairman of the Board and President, First Union National Bank of North Carolina, Charlotte, North Carolina. (Reappointed) A tlanta Birmingham Arthur L. Johnson, President, Camden National Bank, Camden, Alabama. Mr. Johnson succeeds Rex J. Morthland, President, The Peoples Bank and Trust Company, Selma, Alabama. 1 Federal Reserve Bank branches have either five or of the Federal Reserve System. The announcement of seven directors, of whom a majority are appointed by the appointments of branch directors made by the Board of board of directors of the parent Federal Reserve Bank, Governors is published on page 86 of this Bulletin. and the others are appointed by the Board of Governors Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 91 Birmingham—Cent. George A. LeMaistre, President, City National Bank, Tus­ caloosa, Alabama. Mr. LeMaistre succeeds C. Willard Nel­ son, President, State National Bank, Decatur, Alabama. Jacksonville Harry Hood Bassett, Chairman of the Board, First Na­ tional Bank, Miami, Florida. Mr. Bassett succeeds William R. Barnett, Chairman, Barnett First National Bank, Jack­ sonville, Florida. John Y. Humphress, Executive Vice President, Capital City First National Bank of Tallahassee, Florida. Mr. Hurhphress succeeds Dudley Cole, President, Florida First National Bank, Ocala, Florida. Nashville H. A. Crouch, Jr., President, First National Bank, Tulla­ homa, Tennessee. Mr. Crouch succeeds S. N. Brown, President, Union National Bank, Fayetteville, Tennessee. W. H. Swain, President, First National Bank, Oneida, Ten­ nessee. Mr. Swain succeeds J. A. Hill, President, Hamilton National Bank, Morristown, Tennessee. New Orleans Lucien J. Hebert, Jr., Executive Vice President and Cashier, Lafourche National Bank, Thibodaux, Louisiana. Mr. Hebert succeeds Robert M. Hearin, President, First National Bank, Jackson, Mississippi. Morgan Whitney, Vice President, Whitney National Bank, New Orleans, Louisiana. Mr. Whitney succeeds W. Richard White, President, First National Bank of Jeffer­ son Parish, Gretna, Louisiana. Chicago Detroit Raymond T. Perring, Chairman of the Board, The Detroit Bank and Trust Company, Detroit, Michigan. (Re­ appointed) St. Louis Little Rock Edward M. Penick, President and Chief Executive Officer, Worthen Bank and Trust Company, Little Rock, Arkansas. Mr. Penick succeeds Ross E. Anderson, Chairman of the Board, The Commercial National Bank, Little Rock, Arkansas. Louisville J. E. Miller, Executive Vice President, Sellersburg State Bank, Sellersburg, Indiana. (Reappointed) Memphis J. J. White, President, Helena National Bank, Helena, Ar­ kansas. Mr. White succeeds Leon C. Castling, President, First National Bank, Marianna, Arkansas. Minneapolis (2-year term) Helena B. Meyer Harris, President, The Yellowstone Bank, Laurel, Montana. (Reappointed) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

92 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Kansas City (2-year terms) Denver Armin B. Barney, Chairman of the Board, Colorado Springs National Bank, Colorado Springs, Colorado. (Re­ appointed) Oklahoma City Howard J. Bozarth, President, City National Bank and Trust Company, Oklahoma City, Oklahoma. (Reappointed) Omaha S. N. Wolbach, President, First National Bank, Grand Is­ land, Nebraska. Mr. Wolbach succeeds Henry D. Kosman, Chairman of the Board, Scottsbluff National Bank, Scotts­ bluff, Nebraska. John W. Hay, Jr., President, Rock Springs National Bank, Rock Springs, Wyoming. (Reappointed) Dallas El Paso Robert F. Lockhart, President, The State National Bank, El Paso, Texas. (Reappointed) Houston A. G. McNeese, Jr., Chairman of the Board, Bank of the Southwest National Association, Houston, Texas. (Re­ appointed) San Antonio Ray M. Keck, Jr., President, Union National Bank, Laredo, Texas. Mr. Keck succeeds Max A. Mandel, President, The Laredo National Bank, Laredo, Texas. San Francisco Los Angeles T. H. Shearin, President, Bakersfield National Bank, Bakers­ field, California. (2-year term) Sherman Hazeltine, Chairman of the Board and Chief Executive Officer, First National Bank of Arizona, Phoe­ nix, Arizona. (Reappointed) Portland Ralph J. Voss, President, First National Bank of Oregon, (2-year term) Portland, Oregon. Mr. Voss succeeds E. J. Kolar, Director and Chairman of the Discount Committee, United States National Bank of Oregon, Portland, Oregon. Salt Lake City William E. Irvin, President, The Idaho First National Bank, (2-year term) Boise, Idaho. (Reappointed) Seattle Maxwell Carlson, President, The National Bank of Com­ (2-year term) merce, Seattle, Washington. (Reappointed) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 93 ELECTION OF CLASS A AND CLASS B DIRECTORS The Federal Reserve Banks have announced the results of the annual elections by their member banks of Class A and Class B directors as shown below. The directors have been elected to serve for three years beginning January 1, 1968, unless otherwise indicated. Boston Class A William R. Kennedy, President, Merrimack Valley National Bank, Haverhill, Massachusetts. Mr. Kennedy succeeds William I. Tucker, Chairman of the Board, Vermont National Bank, Brattleboro, Vermont. Class B James R. Carter, President, Nashua Corporation, Nashua, New Hampshire. (Re-elected) New York Class A R. E. McNeill, Jr., Chairman of the Board and Chief Executive Offi­ cer, Manufacturers Hanover Trust Company, New York, New York. Mr. McNeill succeeds George A. Murphy, Chairman of the Board, Irving Trust Company, New York, New York. Class B Arthur K. Watson, Chairman of the Board, IBM World Trade Cor­ poration and Vice Chairman of the Board, International Business Machines Corporation, Armonk, New York. (Re-elected) Philadelphia Class A H. Lyle Duffey, Executive Vice President, The First National Bank, McConnellsburg, Pennsylvania. Mr. Duffey succeeds Lloyd W. Kuhn, President, The Bendersville National Bank, Bendersville, Pennsylvania. Class B Philip H. Glatfelter, III, President, P. H. Glatfelter Co., Spring Grove, Pennsylvania. (Re-elected) Cleveland Class A Seward D. Schooler, President, Coshocton National Bank, Coshoc­ ton, Ohio. (Re-elected) Class B John L. Gushman, President, Anchor Hocking Glass Corporation, Lancaster, Ohio. Mr. Gushman succeeds David A. Meeker, Chairman of the Board and Chief Executive Officer, The Hobart Manufacturing Company, Troy, Ohio. Richmond Class A Giles H. Miller, President, The Culpeper National Bank, Culpeper, Virginia. Mr. Miller succeeds George Blanton, Jr., President. First National Bank, Shelby, North Carolina. Class B H. Dail Holderness, President, Carolina Telephone and Telegraph Company, Tarboro, North Carolina. Mr. Holderness succeeds Robert R. Coker, President, Coker’s Pedigreed Seed Company, Hartsville. South Carolina. Atlanta Class A A. L. Ellis, Chairman, First National Bank, Tarpon Springs, Florida. Mr. Ellis succeeds D. C. Wadsworth, Sr., President, The American National Bank, Gadsden, Alabama. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

94 FEDERAL RESERVE BULLETIN □ JANUARY 1968 Atlanta-Cont. Class B Hoskins A. Shadow, President, Tennessee Valley Nursery, Inc., Win­ chester, Tennessee. Mr. Shadow succeeds James H. Crow, Jr., Vice President, The Chemstrand Corporation, Decatur, Alabama. Chicago Class A Melvin C. Lockard, President, First National Bank, Mattoon, Illi­ nois. Mr. Lockard succeeds John H. Crocker, Chairman of the Board, The Citizens National Bank, Decatur, Illinois. Class B Howard M. Packard, Chairman—Finance Committee, S. C. Johnson & Son, Inc., Racine, Wisconsin. Mr. Packard succeeds William E. Rutz, Director and Member of Executive Committee, Giddings and Lewis Machine Tool Company, Fond du Lac, Wisconsin. St. Louis Class A Bradford Brett, President, The First National Bank, Mexico, Mis­ souri. (Re-elected) Class B Mark Townsend, Chairman of the Board, Townsend Lumber Com­ pany, Inc., Stuttgart, Arkansas. (Re-elected) Minneapolis Class A Warren F. Vaughan, Vice President, Security Trust and Savings Bank, Billings, Montana. Mr. Vaughan succeeds John F. Nash, Presi­ dent, The American National Bank, St. Paul, Minnesota. Class B Neil G. Simpson, President, Black Hills Power and Light Company, Rapid City, South Dakota. (Re-elected) Kansas City Class A Kenneth H. Peters, President, The First State Bank, Larned, Kansas. (Re-elected) Class B Alfred E. Jordan, Vice President-Technical Services, Trans World Airlines, Inc., Kansas City, Missouri. Mr. Jordan succeeds Robert A. Olson, President, Kansas City Power and Light Company, Kansas City, Missouri. Dallas Class A J. V. Kelly, President, The Peoples National Bank, Belton, Texas. Mr. Kelly succeeds J. Edd McLaughlin, President, Security State Bank & Trust Company, Ralls, Texas. Class B Carl D. Newton, President, Fox-Stanley Photo Products, Inc., San Antonio, Texas. Mr. Newton succeeds H. B. Zachry, Chairman of the Board, H. B. Zachry Company, San Antonio, Texas. San Francisco Class A Charles F. Frankland, Chairman of the Board and Chief Executive Officer, The Pacific National Bank, Seattle, Washington. (Re-elected) Class B Marron Kendrick, President, Schlage Lock Company, San Fran­ cisco, Californio. (Re-elected) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 95 CHANGES IN THE BOARD'S STAFF Board’s research staff in July 1953 and was named The Board of Governors announced the follow­ Chief of the Government Finance Section, Divi­ ing promotions within its official staff, effective sion of Research and Statistics, in June 1959. In January 1, 1968: January 1964 he was named to the position he Robert C. Holland, formerly an Adviser to the held at the time of this appointment. Board, was named Secretary of the Board, suc­ Division of Bank Operations—James A. Mc­ ceeding Merritt Sherman, who was appointed an Intosh, from Senior Operations Analyst to Assist­ Assistant to the Board with advisory responsibili­ ant Director. Mr. McIntosh joined the Board’s ties in the administrative area. Mr. Holland will Division of Bank Operations as an Analyst in continue to serve as Secretary of the Federal Open October 1957. Market Committee. P. D. Ring, from Senior Technical Assistant to David B. Hexter was promoted from Associate Assistant Director. Mr. Ring joined the Board’s General Counsel to General Counsel, succeeding staff as an Assistant Federal Reserve Examiner in Howard H. Hackley, who was named as an July 1952 and served until August 1954 when he Assistant to the Board with advisory responsibili­ became affiliated with the Federal Reserve Bank ties in the legal area. of Richmond. He returned to the Board’s Division Other promotions within the various offices and of Bank Operations as Technical Assistant in divisions of the Board were: January 1958. Office of the Secretary—Kenneth A. Kenyon, from Assistant Secretary to Deputy Secretary. DEATH OF DIRECTOR Legal Division—Thomas J. O’Connell, from Mr. Frederic S. Hirschler, Director and retired Assistant General Counsel to Deputy General Chairman of the Board, The Emporium Capwell Counsel. Company, Oakland, California, who had served as Division of Research and Statistics—Stephen a Class C director of the Federal Reserve Bank of H. Axilrod and Lyle E. Gramley, from Associate San Francisco since March 23, 1962, and as Advisers to Advisers; Murray S. Wernick, from Chairman and Federal Reserve Agent since 1966 Assistant Adviser to Associate Adviser. died on January 8, 1968. Division of International Finance—John E. Reynolds, from Adviser to Associate Director. Division of Examinations—Brenton C. Leavitt, CHANGES IN RESERVE REQUIREMENTS from Assistant Director to Deputy Director. On December 27, 1967, the Board of Governors Division of Bank Operations—John N. Kiley, of the Federal Reserve System announced an in­ from Assistant Director to Associate Director. crease in the reserves that member banks are In addition, the Board also announced the required to maintain against demand deposits in following new appointments to its official staff: excess of $5 million at each bank. Office of the Secretary—Robert P. Forrestal, The increase will take effect in two stages dur­ from Special Assistant to Assistant Secretary. Mr. ing January 1968 and will apply to the approxi­ Forrestal became a member of the Board’s staff in mately 2,000 member banks that do the bulk of June 1964 as an attorney in the Legal Division. He the nation’s banking business. transferred to the Office of the Secretary in August The action will lift reserve requirements against 1967. ’ ~ demand deposits in excess of $5 million from the Division of Research and Statistics—Louis present 16'A per cent to 17 per cent for reserve Weiner, from Assistant to the Director to Assistant city banks, and from the present 12 per cent to Adviser. Mr. Weiner came to the Board in August 12'A per cent for other member banks. 1947, and in January 1954 he was named Chief of The result will be an increase of required re­ the National Income, Labor Force, and Trade serves by an amount estimated to total about $550 Section, Division of Research and Statistics. He million—approximately $360 million when it be­ was named Assistant to the Director of that comes effective for reserve city banks, and another Division in March 1966. $190 million when effective for other member Peter M. Keir, from Chief, Capital Markets banks. The addition of these sums to required Section, to Assistant Adviser. Mr. Keir joined the reserves will bring a corresponding decrease in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

96 FEDERAL RESERVE BULLETIN □ JANUARY 1968 funds that might otherwise be used by member Ceilings on foreign credit extensions by banks banks for loans and investments. were revised as follows: The action was taken in furtherance of the For banks whose ceilings had been set at 109 Federal Reserve’s objectives of fostering financial per cent of their 1964 base (that is, the amount conditions conducive to resistance of inflationary of foreign credits they had outstanding on Decem­ pressures and to progress toward equilibrium in ber 31, 1964), the new ceiling for 1968 will now the U.S. balance of international payments. be 103 per cent. For other, smaller banks whose To give the affected member banks a transition ceilings had been set at 2 per cent of their total period to make adjustments to the higher levels of assets on December 31, 1966, the new ceiling for required reserves, the effective dates of the in­ 1968 will now be an amount equal to their 1967 crease were set as follows: for reserve city banks ceiling plus one-third of the addition to that ceiling (in general, the larger banks in the larger centers), envisaged in the original 1968 guidelines. the reserve computation period beginning January The banks also are asked to reduce outstanding 11; for other member banks with more than $5 term loans to developed countries of continental million in demand deposits, the computation Western Europe (that is, loans with maturities of period beginning January 18. The January effec­ 1 year or more) by not renewing such loans at tive dates were chosen to coincide with a period maturity, and by not relending the repayments of when the banks’ need for reserves will be under­ such loans to residents of those countries. The going the usual seasonal drop from the pre-Christ­ guidelines request that short-term loans to devel­ mas peak. oped countries of continental Western Europe be All members of the Board concurred in the reduced during 1968 by 40 per cent of the amount action. outstanding on December 31, 1967, at a rate of The increase in reserve requirements will be the not less than 10 percentage points in each quarter. first since September 1966, when the reserves re­ Revised guidelines for nonbank financial insti­ quired against time deposits in excess of $5 million tutions request that holdings of foreign assets at each member bank were raised from 5 per cent covered by the program be reduced during 1968 to 6 per cent. by 5 per cent or more compared to the amount of It will be the first increase in reserve require­ such assets held on December 31, 1967. It is ex­ ments against demand deposits since November pected that holdings of liquid funds abroad (de­ 1960, when requirements for banks other than posits and money market instruments) will be reserve city banks were raised from 11 to 12 per reduced to zero, or to the minimum working bal­ cent to offset, in part, the addition to reserves ance required to conduct foreign business activi­ resulting from permission to count vault cash as ties, even if this entails a decline in foreign assets by more than 5 per cent. The nonbank financial reserves. institutions, which include insurance companies, trust companies, mutual savings banks, and so CHANGES IN GUIDELINES forth, are requested to refrain from making any BALANCE OF PAYMENTS PROGRAM new loans or investments in developed countries of continental Western Europe other than those On January 1, 1968, the Board of Governors of judged essential for the financing of U.S. exports. the Federal Reserve System issued revised guide­ The Board pointed out that the guidelines have lines, effective immediately, for restraint of been designed to focus the major effect of the re­ foreign credits by banks and other financial insti­ duction on the developed countries of continental tutions. Western Europe without adverse effects on credits The revised guidelines, which are substantially necessary to finance U.S. exports or on credits to more restrictive than those issued on November developing countries. 16, 1967, are a part of the President’s program an­ In issuing the revised guidelines the Board ex­ nounced on January 1, to strengthen the U.S. pressed its confidence that the financial community balance of payments. The new guidelines are de­ fully appreciates the urgency of improving the signed to achieve a net inflow of at least $500 balance of payments and that the splendid co­ million during 1968. operation exhibited by participants in the credit Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 97 restraint program thus far will continue, despite Expenses in 1967 were up $13 million, about the heavier burden now imposed. 6 per cent, and dividends, $1 million. The revised guidelines are shown on page 63. CHANGE IN PAGE NUMBERING SYSTEM OF BULLETIN EARNINGS AND EXPENSES OF THE FEDERAL RESERVE BANKS IN 1967 AND 1966 Beginning with this issue, a new numbering system is being used for the tabular section of the Preliminary figures received from the Federal Bulletin and for the materials that follow it. Reserve Banks indicate that during 1967 their Each of these pages will carry a prefix “A” in gross current earnings amounted to $2,190 million. addition to a number. Expenses totaled $220 million, leaving net current The contents for the domestic and international earnings of $1,970 million. With a $2 million net financial and business statistics, which have been addition from profit and loss account, net earnings combined, start on page A-l. The Guide to before payments to the U.S. Treasury were $1,972 Tabular Presentation appears on page A-3. million. Payments to the U.S. Treasury as interest U.S. statistics begin on page A—4; international on Federal Reserve notes amounted to $1,907 statistics on page A-66; the Federal Reserve roster, million; statutory dividends to member banks, $35 on page A-87; Board publications on page A-91; million; and additions to surplus accounts, $30 and the index to statistical tables on page A-94. million. When special flow of funds tables are printed, Under the policy adopted by the Board of with quarterly or annual data, they will appear in Governors at the end of 1964, all net earnings the same relative position as the two regular flow after the statutory dividend to member banks and of funds tables (pages A-64 and A-65). So as to additions to surplus to bring it to the level of avoid changes in page numbers in the international paid-in capital were paid to the U.S. Treasury as section and in the materials that follow it, special interest on Federal Reserve notes. flow of funds tables will have page numbers with decimals (for example, A-64.1). Special tables other than for the flow of funds Item 1967 1966 will follow the last international table (page A- 86). With this new numbering system, page numbers Thousands of dollars in this section of the Bulletin will seldom change. Current earnings..................... 2,190,404 1,908,500 ERRATUM IN DECEMBER 1967 BULLETIN Current expenses.................... 220,121 207,401 In the announcement about the change in the dis­ Current net earnings........... 1,970,283 1,701,099 count rate at the Federal Reserve Bank of St. Net addition to current net earnings............................ 2,094 996 Louis that appeared on page 2071 of the Decem­ ber 1967 Federal Reserve Bulletin, the last sen­ Net earnings before payments to U.S. Treasury............. 1,972,377 1,702,095 tence should have read: “As of that date (Novem­ Dividends paid........................ 35,028 33,696 ber 27, 1967) the rate in effect was 4W per cent at Payments to U.S. Treasury all Federal Reserve Banks.” (interest on F.R. notes).... 1,907,498 1,649,455 Transferred to surplus............ 29,851 18,944 ADMISSION OF STATE BANK TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The following bank was admitted to membership Compared with 1966, gross earnings were up in the Federal Reserve System during the period $282 million, or 15 per cent. The principal changes December 16, 1967, through January 15, 1968: in earnings were as follows: on Government se­ Ohio curities, an increase of $301 million; on discounts and advances, a decrease of $21 million; and on Steubenville..............The Union Savings Bank foreign currencies, an increase of $3 million. & Trust Company Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication January 17 Industrial production and nonfarm employment materials advanced. In early January, raw steel rose further in December, and the unemployment production declined. rate declined. The rate of expansion in time and savings deposits slowed, and the money supply EMPLOYMENT and commercial bank credit changed little. In mid­ Nonfarm payroll employment advanced strongly January, yields on U.S. Government, corporate, further in December, following an exceptionally and municipal bonds were below their mid-De­ large October-November rise. Employment has cember levels. increased by more than 900,000 since August— the pre-auto strike level—to 67.1 million. The INDUSTRIAL PRODUCTION December gains were widespread, with increases Industrial production rose 1.5 per cent in De­ in manufacturing, construction, the service indus­ cember and was 161.6 per cent of the 1957-59 tries, and State and local governments. The av­ average—compared with 159.3 in November and erage workweek in manufacturing increased the previous high of 159.5 of December a year slightly returning to the September level of 40.8 ago. Gains in output were widespread for final hours, but was two-tenths of an hour below a products and materials. year earlier. The unemployment rate declined fur­ Auto assemblies recovered from the strike-re­ ther in December to 3.7 per cent from 3.9 per duced lows of previous months and were at an cent in November. annual rate of 8.9 million units. Production sched­ ules for January are set at about the same rate. DISTRIBUTION Output of television sets declined in December, but The value of retail sales was off slightly in De­ production of most other durable and nondurable cember and was 4 per cent above a year earlier, consumer goods increased further. A rise in out­ according to advance Census estimates. A 1 per put of some business equipment lines was offset by strike curtailments in farm machinery produc­ cent decline in sales at nondurable goods stores tion. Output of iron and steel and of most other was only partially offset by a similar rise at durable goods stores. The number of new domestic autos delivered by dealers was up 4 per cent in Decem­ INDUSTRIAL PRODUCTION ber but was 5 per cent below a year ago. COMMODITY PRICES The wholesale commodity price index increased by an estimated 0.5 per cent from mid-November to mid-December, as the decline over recent months in prices of farm products and foods was reversed and prices of industrial commodities ad­ vanced further. From mid-July to mid-December, the industrial price rise was at an annual rate of about 3 per cent, and since mid-December— with additional increases effected for basic steel and copper products, for some chemicals and electrical equipment, and for autos and crude and fuel oil—the rise has apparently continued. Fol­ F.R. indexes, seasonally adjusted. Latest figures shown are lowing the abrupt increase in mid-December, for December. 98 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 99 prices of farm products appear to have changed savings deposits continued to slacken. little. Free reserves averaged about $145 million over the four statement weeks ending December 27 BANK CREDIT, DEPOSITS, AND RESERVES compared with $225 million over the preceding five November weeks. Increased member bank Commercial bank credit showed little further borrowing accounted for most of the decline but change in December following relatively moderate growth over the three previous months. While excess reserves were also reduced slightly. total loans rose at a somewhat faster pace than in the September-November period—associated prin­ SECURITY MARKETS cipally with heavier business loan demand—bank Yields on U.S. Government notes and bonds and holdings of U.S. Government securities dropped Treasury bills declined considerably between mid­ sharply and their acquisitions of municipal and December and mid-January, especially on ma­ agency issues slowed. turities over 3 months. The 3-month bill was bid The money supply increased $200 million in at around 5.00 per cent in the middle of January. December following an average monthly expan­ Yields on new and seasoned corporate and sion of almost $1 billion earlier in the year. U.S. municipal bonds continued to rise in the latter Government deposits declined. Growth in time and half of December and then turned down in early savings deposits, which had been slowing since late summer, moderated further in December to an January. Stock prices advanced sharply at the 8.5 per cent annual rate. Although this slower end of the year, but through mid-January fluctu­ pace was associated in large part with attrition of ated within a narrow range while trading volume negotiable CD’s, expansion in other time and rose to unusually high levels. INTEREST RATES PER CENT . — J__________I__________1__________1__________I-----------------2 1963 1964 1965 1966 1967 1968 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 Jan. 12. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Financial and Business Statistics Contents A-3 GUIDE TO TABULAR PRESENTATION U.S. STATISTICS: A-4 Member bank reserves, Reserve Bank credit, and related items A-8 Federal funds A-9 Reserve Bank discount rates A-10 Reserve requirements A-1O Margin requirements A-ll Bank deposits A-l 1 Open market transactions A-12 Federal Reserve Banks A-14 Bank debits A-15 Currency in circulation A-16 Money supply and bank reserves A-l7 Banks and the monetary system A-18 Commercial and mutual savings banks, by classes A-21 Commercial banks A-24 Weekly reporting banks A-28 Business loans A-29 Interest rates A-30 Security prices A-30 Stock market credit A-31 Open market paper A-31 Savings institutions A-33 Federally sponsored credit agencies A-34 Federal finance A-36 U.S. Government securities A-40 Security issues A-42 Business finance A-44 Real estate credit A—48 Consumer credit Continued on next page A-l Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-2 FINANCIAL AND BUSINESS STATISTICS □ JANUARY 1968 U.S. Statistics—Continued A-52 Industrial production A-56 Business activity A-56 Construction A-58 Employment and earnings A-60 Consumer prices A-60 Wholesale prices A-62 National product and income A-64 Flow of funds INTERNATIONAL STATISTICS: A-66 U.S. balance of payments A-67 Foreign trade A-68 U.S. gold transactions and reserve assets A-69 U.S. position in the IMF A-70 International capital transactions of the United States A-82 Reported gold reserves of central banks and governments A-83 Gold production A-84 Money rates in foreign countries A-85 Arbitrage on Treasury bills A-86 Foreign exchange rates A-94 INDEX TO STATISTICAL TABLES Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ GUIDE TO TABULAR PRESENTATION A-3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation p Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area rp Revised preliminary A Assets I, II. L Liabilities Ill, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified ♦ Amounts insignificant in terms of the par­ S.A. Monthly (or quarterly) figures adjusted for ticular unit (e.g., less than 500,000 when seasonal variation 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. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds............................................. Aug. 1967 1428-37 Banking and monetary statistics, 1966 Mar. 1967 456-70 July 1967 1236-3 9 Banks and branches, number, by Semiannually class and 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............................... 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 1 646 List of, Dec. 31, 1966........................... June 1967 1042 Banking offices and deposits of Stock exchange firms, detailed debit group banks, Dec. 31, 1966........... Aug. 1967 1440 and credit balances................................ Sept. 1967 1647 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-6 BANK RESERVES AND RELATED ITEMS □ JANUARY 1968 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 ir e e ­ d Excess B r F i a n o a . n R g w t k s . ­ s s F e r r r e v e ­ e e s T h o e t ld al qu R ir e e ­ d Excess B r F i a n o a . n R g w t k s . ­ s se F r r r e v e ­ e e s T h o e t ld al qu R ir e e ­ d Excess B r F i a n o a . n g w t R k s ­ s . se F 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 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 2,611 341 601 540 540 1941—Dec. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 ,143 848 295 295 1945—Dec. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 ,024 ,011 13 6 7 1950—Dec. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 ,199 ,191 8 5 3 1956—Dec. 19,535 18,883 652 688 -36 4,448 4,392 57 147 -91 1,149 .138 12 97 -86 1957—Dec. 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 ,136 1,127 8 85 -77 1958—Dec. 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 ,077 ,070 7 39 -31 1959—Dec. 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 ,038 ,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 ,035 7 18 -11 1963—Dec. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 .056 ,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 til -70 ,143 ,128 15 23 -8 1966—Dec. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 ,119 ,115 4 54 -50 1967—Jan. 24,075 23,702 373 389 -16 4,594 4,571 23 69 -46 ,164 ,136 28 151 -123 Feb. 23,709 23,351 358 362 -4 4,557 4,511 46 113 -67 ,099 417 -18 46 -64 Mar. 23,405 22,970 435 199 236 4,612 4,608 4 72 -68 ,133 ,122 11 26 -15 Apr. 23,362 23,053 309 134 175 4,644 4,613 31 41 -10 ,131 ,140 -9 11 -20 May 23,284 22,914 370 101 269 4,614 4,583 31 19 12 ,133 .127 6 5 June 23,518 23,098 420 123 297 4,701 4,664 37 30 7 ,150 ,138 12 15 -3 July. 23,907 23,548 359 87 272 4,787 4,749 38 18 20 ,152 ,162 -10 5 -15 Aug. 23,791 23,404 387 89 298 4,633 4,619 14 8 6 ,153 ,148 5 1 4 Sept. 24,200 23,842 358 90 268 4,797 .4,747 50 11 39 ,172 ,169 3 3 Oct.. 24,608 24,322 286 126 160 4,888 4,871 17 27 -10 ,194 ,188 6 2 4 Nov. 24,740 24,337 403 133 270 4,826 4,784 42 19 23 ,191 ,178 13 2 11 Dec. ........... »25,256*24,915 *341 238 *103 *5,052 *5,034 *18 40 *-22 * ,225 * ,217 *8 13 *-5 Week ending— 1966—Dec. 7.... 23,188 23,007 181 449 -268 4,454 4,432 22 22 ,073 ,073 20 -20 14.... 23,518 23,008 510 647 -137 4,378 4,363 15 122 -107 ,075 ,070 5 79 -74 21. ... 23,892 23,688 204 472 -268 4,701 4,656 45 75 -30 ,156 447 9 9 28.... 24,165 23,728 437 548 -111 4,680 4,673 7 183 -176 ,136 ,131 5 63 -58 1967—June 7. ... 23,176 22,845 331 77 254 4,592 4,563 29 7 22 1,139 .134 5 5 14. 23,213 22,858 355 43 312 4,565 4,551 14 14 ,103 ,101 2 2 21.... 23,767 23,506 261 91 170 4,874 4,865 9 27 -18 .157 ,159 -2 9 -H 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 ,191 ,185 6 77 -71 12.... 24,066 23,423 643 69 574 4,780 4,719 61 61 ,148 1,143 5 5 19. ... 23,889 23,653 236 51 185 4,773 4,742 31 31 ,141 ,138 3 3 26. ... 24,021 23,589 432 54 378 4,735 4,727 8 8 ,179 1,170 9 9 Aug. 2.... 23,974 23,679 295 116 179 4,800 4,778 22 28 -6 1,189 ,183 6 2 4 9. ... 23,960 23,589 371 91 280 4,699 4,684 15 1 14 ,177 1,173 4 4 16.... 23,763 23,381 382 129 253 4,593 4,578 15 6 9 ,135 1,134 1 3 -2 23. 23,773 23,300 473 47 426 4,590 4,577 13 13 ,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.... 24,316 23,908 408 106 302 4,782 4,756 26 21 5 >171 471 27.... 24,212 24,001 211 74 137 4,858 4,839 19 19 ,202 ,194 8 8 Oct. 4.... 24,642 24,229 413 144 269 4,955 4,929 26 4 22 ,206 ,204 2 2 11.... 24,399 24,150 249 145 104 4,804 4,771 33 21 12 ,177 478 -1 -1 18.. 25,029 24,468 561 216 345 4,925 4,890 ' 35 98 -63 ,198 1,198 7 -7 25.... 24,549 24,359 190 58 132 4,977 4,893 84 84 1,193 ,187 6 6 Nov. 1.... 24,705 24,414 291 80 211 4,942 4,919 23 5 18 ,179 ,180 -1 -1 8. ... 24,754 24,424 330 132 198 4,852 4,824 28 3 25 ,197 1,194 3 10 -7 15. ... 24,699 24,181 518 162 356 4,687 4,658 29 36 -7 ,166 ,159 7 7 22. 24,622 24,401 221 127 94 4,816 4,797 19 29 -10 ,197 ,186 11 11 29.... 24,658 24,274 384 119 265 4,856 4,808 48 8 40 1,177 ,173 4 .............4 Dec. 6.... 24,840 24,552 288 87 201 4,920 4,885 35 35 ,201 ,197 4 4 13. . *24,709*24,374 *335 121 *214 *4,824 *4,809 *15 2 *13 *1,157 *1,153 *5 *5 20. *25,194*24,950 *244 185 *59 *5,089 *5,062 *26 37 *-11 *1,216 *1,219 *-2 *-2 27.... *25,701 *25,243 *458 345 *113 *5,237 *5,179 *58 27 *31 * ,263 * ,249 *14 2 *12 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ BANK RESERVES AND RELATED ITEMS A-7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow­ Reserves Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves T h o e t ld al Required Excess Banks T h o e t ld al Required Excess Banks 761 749 12 409 -397 632 610 22 327 -305 ..............................1929—June 648 528 120 58 62 441 344 96 126 -30 ..............................1933—June 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ..............................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ..............................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ........................1945—Dec. 6,861 6,589 271 123 148 4,972 4,375 597 57 540 ..............................1947—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ..............................1950—Dec, 8,078 7,983 96 300 -203 5,859 5,371 488 144 344 ..............................1956—Dec. 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 ..............................1957—Dec. 7,940 7,883 57 254 -198 5,849 5,419 430 162 268 ..............................1958—Dec. 7,954 7,912 41 490 -449 6,020 5,569 450 213 237 ..............................1959—Dec. 7,950 7,851 100 20 80 6,689 6,066 623 40 583 ..............................1960—Dec. 8,367 8,308 59 39 20 6,931 6,429 502 31 471 ..............................1961—Dec. 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 ..............................1962—Dec. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 .............................1963—Dec. 8,735 8,713 22 125 -103 7,707 7,337 370 55 315 ..............................1964—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 ..............................1965—Dec. 9,509 9,449 61 220 -159 8,619 8,318 301 161 140 9,584 9,567 17 97 -80 8,732 8,428 305 72 233 ..............................1967—Jan. 9,439 9,408 31 115 -84 8,614 8,315 299 88 211 ............................................Feb. 9,366 9,300 66 53 13 8,294 7,940 354 48 306 ............................................Mar. 9,397 9,382 15 53 -38 8,189 7,918 271 29 242 ............................................Apr. 9,319 9,282 37 46 -9 8,219 7,922 297 31 266 ............................................May 9,381 9,314 67 34 33 8,285 7,983 302 44 258 ............................................June 9,564 9,542 22 10 12 8,403 8,095 308 54 254 ...........................................July 9,557 9,509 48 32 16 8,448 8,129 319 48 271 ............................................Aug. 9,649 9,623 26 32 -6 8,582 8,304 278 47 231 ...........................................Sept. 9,878 9,860 18 42 -24 8,648 8,402 246 55 191 ............................................Oct. 9,900 9,835 65 51 14 8,823 8,540 283 61 222 ............................................Nov. *10,081 no,031 ”49 105 *-56 *8,898 *8,632 *266 80 *186 ...........................................Dec. Week ending— 9,311 9,289 22 217 -195 8,350 8,213 137 212 -75 .......................1966—Dec. 7 9,321 9,295 26 262 -236 8,744 8,280 464 184 280 ................................................14 9,593 9,537 56 224 -168 8,441 8,348 93 164 -71 ................................................21 9,579 9,556 23 183 -160 8,771 8,368 403 119 284 ................................................28 9,274 9,232 42 19 23 8,171 7,916 255 51 204 .......................1967—June 7 9,260 9,227 33 8 25 8,285 7,979 306 35 271 ................................................14 9,456 9,437 19 35 -16 8,281 8,044 237 20 217 ................................................21 9,363 9,331 32 75 -43 8,352 7,973 379 64 315 ................................................28 9,537 9,456 81 28 53 8,235 7,980 255 75 180 .....................................July 5 9,506 9,460 46 11 35 8,632 8,100 532 58 474 ................................................12 9,674 9,607 67 2 65 8,302 8,165 137 49 88 ................................................19 9,608 9,582 26 11 15 8,499 8,110 389 43 346 ................................................26 9,626 9,598 28 36 -8 8,360 8,120 240 50 190 .....................................Aug. 2 9,623 9,579 44 52 -9 8,461 8,152 309 37 272 ............................................... 9 9,559 9,506 53 53 8,476 8,163 313 67 246 ................................................16 9,492 9,467 25 3 22 8,540 8,117 423 44 379 ................................................23 9,482 9,444 38 38 8,275 8,077 198 46 152 ................................................30 9,608 9,570 38 17 21 8,443 8,191 252 41 211 .....................................Sept. 6 9,592 9,560 32 19 13 8,636 8,331 305 51 254 ................................................13 9,627 9,616 11 50 -39 8,736 8,364 372 35 337 ................................................20 9,664 9,662 2 22 -20 8,487 8,307 180 52 128 ................................................27 9,827 9,783 44 68 -24 8,653 8,314 339 72 267 .....................................Oct. 4 9,840 9,796 44 60 -16 8,577 8,405 172 64 108 ................................................11 9,957 9,943 14 54 -40 8,949 8,436 513 57 456 ................................................18 9,924 9,866 58 10 48 8,456 8,413 43 48 -5 ................................................25 9,917 9,897 20 28 -8 8,667 8,418 249 47 202 .....................................Nov. 1 9,950 9,894 56 45 11 8,755 8,511 244 74 170 ............................................... 8 9,845 9,802 43 71 -28 9,000 8,562 438 55 383 ................................................15 9,910 9,861 49 34 15 8,699 8,557 142 64 78 ................................................22 9,812 9,755 57 63 -6 8,812 8,539 273 48 225 ................................................29 9,969 9,947 22 22 8,749 8,523 226 65 161 .....................................Dec. 6 *9,880 *9,851 *29 69 *-40 *8,847 *8,562 *286 50 *236 ................................................13 *10,051 flO,018 *33 52 *-19 *8,838 *8,650 *188 96 *92 ................................................20 *10,180 *10,125 *55 199 *-144 *9,022 *8,690 *332 117 *215 ................................................27 i 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

A-8 MAJOR RESERVE CITY BANKS □ JANUARY 1968 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 Reportins banks week a e n n d d ing— s E e x r r v c e e e ­ s s s 1 r a B o t B w a F o n i r n . k R ­ g s s . F f i t b e n l r N u d a a t e e n i e n d r r t k s s ­ a . l S d u e r o f p i r c lu it s r P r e e e q a s r e o v u c r g f i e v r . n e e d s t c P ha u s r e ­ s Sales a 2 t T c r - t o a w io t n a a n s y l ­ s 2 b c o b P h u a f a u y n n s i r k n e e ­ s s t g s o b S e a f a l l n n l i e n k e s g s t d L ea o t l a o e n rs s 3 de B r f a i r n o l o o e g w r m r s ­ s ­ 4 lo N a e n t s Total—46 banks 1967—Nov. 1............. 31 16 549 -534 4.8 2,532 1,983 1,402 1,131 581 1,680 75 1,605 8............. 45 49 1,272 -1,276 11.6 2,935 1,663 1,381 1,554 282 1,507 77 1,430 15 44 90 1,170 -1.217 11.3 2,761 1,591 1,354 1,408 238 1,343 82 1,260 22.............. 42 57 839 -855 7.8 2,976 2,137 1,592 1,384 545 1,536 74 1,462 29............. 84 48 208 -172 1.6 2,543 2,334 1,400 1,143 934 1,328 65 1,263 44 21 506 -484 4.4 2,780 2,273 1,513 1,267 760 1,611 77 1,534 13 26 56 49 i -520 4.8 2,710 2,219 1,352 1 ,358 867 1,433 92 1 ;341 20............. 39 80 700 -741 6.6 3,030 2,330 1,534 1 '496 796 1,699 89 1,610 27............. 86 131 671 -716 6.2 2,986 2,315 1,628 1,358 687 1,598 111 1,488 8 In New York City 1967 Nov. 1............. 17 5 73 -61 1.4 897 824 586 311 238 1,002 75 927 ' 8............. 27 299 -271 6.2 985 686 539 446 147 '877 77 800 15............. 22 36 312 -326 7.7 967 655 605 362 50 753 82 670 22. 10 29 -85 66 1.5 916 1,001 715 201 285 935 74 861 29............. 35 8 -233 260 5.9 874 1,107 618 257 489 822 65 757 30 98 -68 1.5 1,052 954 693 359 261 963 77 885 13............. 10 2 -160 168 3.8 '905 1,066 626 280 440 979 92 887 20............. 25 37 188 -200 4.3 1 ,147 '959 691 456 268 1,204 85 1 ,119 27............. 52 27 250 -225 4.8 1,172 922 670 501 251 1,208 100 1,108 38 outside New York City 1Qfi7, Nov 1 ......... 15 11 476 -473 7.1 1,636 1,159 816 820 344 677 677 8............. 18 49 973 -1.004 15.2 1,949 977 842 1,108 135 630 630 15 21 54 858 -891 13.7 1,795 936 748 1,046 188 590 590 22.. 31 28 924 -920 14.0 2,060 1,136 877 1,183 259 601 601 29............. 49 40 441 -432 6.6 1,669 1,227 783 '886 445 506 506 14 21 408 -416 6.3 1,727 1,319 820 908 499 648 648 13 16 54 651 -688 10.6 1,805 1,154 727 1 ,078 427 455 455 20............. 14 43 512 -541 8.1 1,883 1 ,370 843 1,040 528 495 4 491 27............. 34 104 421 -491 7.3 1,814 1,394 958 856 436 390 11 379 5 In City of Chicago 1 Q67 Nnv 1............ 3 —45 49 4.6 289 335 257 32 77 19 19 8 2 io 27 -35 3.2 367 340 288 78 52 17 17 15 — 1 .1 333 333 291 42 42 12 12 22 ........... 5 12 -7 .7 371 358 285 86 74 7 7 29 ... -77 77 7.3 315 392 267 48 125 3 -162 166 15.4 312 475 251 62 224 15 15 13 3 -143 146 14.1 280 423 254 27 170 1 I 20 ........ -2 -277 274 24.9 278 555 252 27 303 1 1 27 7 -194 202 17.8 301 496 294 7 201 33 others 10<7_ Nov 1 .... 11 11 522 -521 9.4 1 ,346 825 558 788 267 659 659 8 ... 16 39 946 —970 17.6 1,583 637 553 1,029 83 613 613 15 .... 23 54 858 -890 16.4 1,461 603 457 1,004 146 578 578 22 ... 26 28 912 -913 16.6 1,690 778 592 1,097 186 594 594 79 ... 48 40 518 — 509 9.4 1 ,353 835 516 838 320 506 506 II 21 571 -582 10.5 I ,415 844 569 846 275 633 633 13 13 54 794 -835 15.3 1,524 730 473 1,051 257 453 453 20............. 17 43 789 -815 14.7 l,'604 815 591 1 ;oi3 224 494 4 490 27............. 26 104 615 -693 12.3 1,513 898 663 849 234 390 II 379 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

JANUARY 1968 □ DISCOUNT RATES A-9 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) ^ Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Dec. 31 date rate Dec. 31 date rate Dec. 31 date rate Boston........... Nov. 20,1967 4 Nov. 20,1967 Nov. 20,1967 5 New York..* Nov. 20,1967 4 Nov. 20,1967 Nov. 20,1967 5ft Philadelphia.., Nov. 21,1967 4 Nov. 21,1967 ^ Nov. 21,1967 5 Cleveland.... Nov. 20,1967 4 Nov. 20,1967 Nov. 20,1967 5ft Richmond... Nov. 20,1967 4 Nov. 20,1967 Nov. 20,1967 5 Atlanta.......... Nov. 20,1967 4 Nov. 20,1967 6ft Nov. 20,1967 6 Chicago......... Nov. 20,1967 4 Nov. 20,1967 5ft Nov. 20,1967 5 St Louis........ Nov. 27,1967 4 Nov. 27,1967 5ft Nov. 27,1967 5 Minneapolis.. Nov. 20,1967 4 Nov. 20,1967 5ft Nov. 20,1967 5 Kansas City.. Nov. 20,1967 4 Nov. 20,1967 5ft Nov. 20,1967 5 Dallas............. Nov. 20,1967 4 Nov. 20,1967 5ft Nov. 20,1967 5 San Francisco Nov. 20,1967 4 Nov. 20,1967 5ft Nov. 20,1967 5 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 aU F.R. of date all F.R. of date aU F.R. of Banks N.Y. Banks N.Y. Banks N.Y. 1955 1959 In effect Dec. 31,1941......... 1 -1W 1 1' ftV-1 ft 1ft Mar. 6. 2ft-3 3 ' 15.. 16................................ 3 1942 May 29................................ 3 -354 3ft 1 1 Aug. 4............... lft-2 ft 1« June 12................................ 354 3(4 Oct 15.................................... f ft-1 1ft-2 ft 314-4 4 30.................................... tH 12............... 2-2U 2 ' ................................ ‘4 4 Sept. 9............... 2 -2g I * 13............... 254 1960 1946 Nov. 18............... 2W-2W June 3. 3ft-4 4 Apr 25.................................... t ft-1 1 1 23..... 1 .. 9 .. 5 .. 6 .... 254 Aug. 1 1 1 2 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 f 3 t 5 4 - 4 4 ft 3 3 3 5 f 4 t Apr. 13............... 2ft-3 3 ” 3 1948 “ 20............... 2ft-3 2ft Jan. 12..................................... 1 1ft Aug. 24............... 3 19.................................... 1ft 31............... 3 1963 Aug. 13.................................... 1U-1U 17. 3 -354 3ft ~ 23.................................... 1957 ' ................................ 354 354 3 3?^ 3 ’ 23........ 1964 Aug. 21....... 1 .. 9 .. 5 .. 0 ....................... 1 ft-1 1ft N De o c v . . 1 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 -354 3 Nov. 24. ....... 3 .. 5 ..4. 4 .. - . 4 ................. 4 4 " 25.................................... 1958 Jan. 22............... 3 1965 1953 24.............. 2ft 4 -4ft 4ft Jan 2 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ft 2 2 2 Mar. 7........... 1 ... 3 . ............... 2 4 ft i -3 « 254 11................................ 4ft Aor. 2 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ■^ Anr. 7. 1967 4 -4ft 4 1954 1ft 14................................ 4 4 F A e p b r , 1 1 5 5 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . lft-2 A Se u p * g t . . 2 1 1 3 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . is- 2 2 Nov. 2 27 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 45 -4 4 ft 4 41 5 4 4 * 16................................... 1 ft-1 1ft Oct. 24............... 2 -254 2 May 21.................................. 1ft Nov. 7............... 254 254 454 454 t Preferential rate of one-half of 1 per cent for advances secured by against U.S. Govt, obligations was the same as its discount rate except U.S. Govt, obligations maturing in 1 year or less. The rate of 1 per cent in the following periods (rates in percentages): 1955—May 4-6, 1.65; was continued for discounts of eligible paper and advances secured by Aug. 4, 1.85: Sept. 1-2, 2.10; Sept. 8, 2.15: Nov. 10, 2.375; 1956—Aug. such paper or by U.S. Govt, obligations with maturities beyond 1 year. 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—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

A-10 RESERVE REQUIREMENTS □ JANUARY 1968 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Requirements through July 13,1966 Requirements beginning July 14,1966 Net Time deposits4 Net demand deposits 2 demand deposits^ (all classes of banks) Time deposits Ot her (all time deposits Effective date 1 C b re a e c s n n i e t t k r y r v s a e l R b e c a s i n e ty r k v s e C b o a u n n k tr s y c b l a a o n s f k s e s s ) Effective date1 R b e c a s i n e ty r k v s e C b o a u n n k tr s y 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 $5 mil­ lion lion In effect Dec. 31, 1949....... 22 18 12 5 1966—July 14,21............... 516% 5 12 54 54 5 Sept. 8, 15............... 6 1951—Jan. 11,16..................... 23 19 13 6 Jan. 25, Feb. 1............. 24 20 14 1953—July 9,1........................ 22 19 13 1967—Mar. 2...................... 3H 1* __Tun* 04 1 A ............... 21 5 3 July 29’ Aug. ............. 20 18 12 1958—-Feb. 27, Mar 19M H“ In effect Dec. 31, 19676. .. 16% 12 3 3 6 Mar. 20, Apr, ............. 19 A eir 18J4 Apr. 24............................ 18 1616 1960—Sept. 1............................ 17% Present legal Nov. 24............................ 12 ............... requirement: Dec. 1.............. 16>A 1Q62—ThIv 2R........................ (3) 10 7 3 3 3 Oct. 25, Nov. 1............. 4 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central club accounts became subject to same requirements as savings deposits. reserve or reserve city banks and the second to the change at country 5 See preceding columns for earliest effective date of this rate. banks. For changes prior to 1950 see Board’s Annual Reports. 6 For changes in requirements against demand deposits effective in Jan. 2 Demand deposits subject to reserve requirements are gross demand 1968 see p. 95. deposits minus cash items in process of collection and demand balances Note.—All required reserves were held on deposit with F.R. Banks due from domestic banks. June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member 3 Authority of the Board of Governors to classify or reclassify cities banks were allowed to count part of their currency and coin as reserves; as central reserve cities was terminated effective July 28, 1962. effective Nov. 24, 1960, they were allowed to count all as reserves. For 4 Effective Jan. 5, 1967, time deposits such as Christmas and vacation further details, see Board’s Annual Reports. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Nov. 1, 1933—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type and maturity of deposit Nov. Feb. Jan. Jan. Jan. July Nov. Dec. Type of deposit July Sept. 17, 24, 6, 20, 26, wh 19k 19k 1957 1962 1963 1964 1965 1966 1966 Savings deposits: Savings deposits..................... 4 4 12 months or more............ 3 ^ ^ 3 4 4 4 4 Other time deposits:1 Less than 12 months......... 3 3 3^ 3W 4 4 Multiple-maturity: Other time deposits:1 90 days or more......... 5 5 12 months or more............ 3 3 4 4 4U 1 Less than 90 days......... 4 4 6 months to 12 months... 3 3 ^ 4 4% (30-89 days) 90 days to 6 months.......... 3 2tf 4 4% Single-maturity: Less than 90 days............... 3 2% 1 1 1 1 4 5% $100,000 or more........... 5% (30-89 days) Less than $100,000.... 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, EFFECTIVE DATE OF CHANGE (Per cent of market value) Jan. 4, Apr. 23, Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, Regulation 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 maxia security by prescribing a maximum loan value, which is a specified per- mum loan value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ BANK DEPOSITS; OPEN MARKET ACCOUNT A-ll DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k b l e s r Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n U k b e s r Y N o e r w k Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Nov, 8, 1967 Four weeks ending Dec. 6, 1967 Gross demand—Total.... 158,160 32,868 7,038 57,656 60,598 Gross demand—Total.... 158,076 32,197 6,886 57,579 61,415 Interbank........................ 17,230 5,662 1,273 8,071 2,225 Interbank.................... 17,427 5,806 1,239 8,151 2,231 U.S. Govt........................ 5,821 1,605 326 2,330 1,560 U.S. Govt................... 4,348 752 204 1,671 1,722 Other................................ 135,109 25,602 5,439 47,255 56,814 Other........................... 136,302 25,641 5,444 47,756 57,462 Net demand 1.................... 124,728 23,041 5,502 45,129 51,057 Net demand 1...................... 124,296 22,359 5,411 44,710 51,816 Time.................................... 147,223 20,795 5,981 55,558 64,889 Time...................................... 147,732 21,076 6,028 55,651 64,978 Demand balances due Demand balances due from dom. banks........... 8,305 273 150 1,958 5,925 from dom. banks....... 8,383 297 165 1,970 5,952 Currency and coin............ 4,248 348 89 1,294 2,516 Currency and coin............. 4,323 369 82 1,325 2,549 Balances with F.R. Balances with F.R. Banks................................ 20,512 4,576 1,104 8,642 6,190 Banks............................... 20,382 4,451 1,104 8,560 6,267 Total reserves held............ 24,760 4,924 1,193 9,936 8,706 Total reserves held............ 24,705 4,820 1,186 9,885 8,816 Required.......................... 24,417 4,882 1,190 9,900 8,445 Required.......................... 24,352 4,787 1,179 9,841 8,546 Excess.............................. 343 42 3 36 261 Excess.............................. 353 33 7 44 270 1 Demand deposits subject to reserve requirements are gross demand Note.—Averages of daily figures. Balances with F,R, Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks, excess reserves) are as of opening of business. TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G h p r u a o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G p h r u a o s r s e ­ s s G sa r l o e s s s Re t d io 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 i r f r t i i t , y c G h p r a u o s r s e ­ s s G sa r l o e s s s m E a x t o u c r r h i . t y redemp­ shifts tions 1966—Nov............ 860 223 323 860 223 323 6,456 -6,253 Dec.......... 771 405 736 405 15 12 1967__Jan............... 904 656 439 904 656 439 Feb.............. 812 305 812 305 -2,457 2,595 Mar,,...... 1,496 704 1,395 704 80 Anr... 975 206 415 859 206 415 10 50 .......1..,.1...46 107 412 936 107 412 -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 Sept ..... 1,110 623 127 919 623 127 24 121 44 Oct ............. 700 27 200 700 27 200 1,386 168 1,200 168 -1,227 121 1,227 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 IJ.S. tions Under Net c G p h r u a 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 f i h t t a y s . ­ c G p h r u a 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 f it 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 G s i e t o i c v e u s t r . ­ p ( m a n u g e r e r t n c e h t r e s a e ­ ) ­ se r O i n g u e h t t t ­ , a r m c g e h n p e r a e n e u t s e t r e s ­ ­ , change 1 1966__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 -113 450 450 -249 -14 -263 Sept.... 27 - 44 19 453 453 361 -12 104 453 Oct....... 1,427 1,427 474 1 -104 370 Nov.... 45 20 1,369 1,046 1,541 23 5 1,570 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

A-12 FEDERAL RESERVE BANKS □ JANUARY 1968 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday 1 End of month Item 1967 1967 1966 Dec. 27 Dec. 20 Dec. 13 Dec. 6 Nov. 29 Dec. Nov. Dec. Aneto Gold certificate account........................................... 10,005 9,978 9,982 10,013 10,498 9,550 10,498 10,836 Redemption fund for F.R. notes........................... 1,927 1,928 1,928 1,902 1,895 1,931 1,894 1,838 Total gold certificate reserves.................................. 11,932 11,906 11,910 11,915 12,393 11,481 12,392 12,674 Cash............................................................................... 354 354 358 349 350 360 351 298 Discounts and advances: Member bank borrowings................................... 341 419 156 124 136 141 76 173 Other........................................................................ Acceptances: Bought outright..................................................... 74 74 69 69 59 75 59 69 Held under repurchase agreements................... 79 66 49 ...............8..9.. 124 Federal agency obligations—Held under repurchase agreements.............................................................. 34 2 38 23 34 U.S. Oovt. securities: Bought outright: BUts................................................................... 15,978 15,735 15,848 15,848 15,496 15,975 15,603 11,803 Certificates—Special......................................... Other........................................... 4,351 Notes.................................................................... 26,918 26,918 26,918 26,918 26,918 26,918 26,918 21,302 Bonds................................................................... 6,087 6,087 6,087 6,087 6,087 6,087 6,087 6,199 Total bought outright........................................... 48,983 48,740 48,853 48,853 48,501 48,980 48,608 43,655 Held under repurchase agreements................... 188 42 132 323 627 Total U.S. Govt, securities...................................... 49,171 48,740 48,853 48,853 48,543 49,112 48,931 44,282 Total loans and securities........................................ 49,699 49,233 49,144 49,095 48,740 49,455 49,089 44,682 Cash items in process of collection....................... 8,484 8,929 8,078 7,651 7,134 8,465 7,023 7,879 Bank premises............................................................ 112 123 111 111 112 112 111 107 Other assets: Denominated in foreign currencies................... 1,288 1,282 1,189 1,045 1,307 1,604 1,307 875 IMF gold deposited 1........................................ 233 233 233 233 233 233 233 211 AU other.................................................................. 295 271 249 227 194 316 197 332 Total assets................................................................. 72,397 72,331 71,272 70,626 70,463 72,026 70,703 67,058 XL, ji I, I .1 ■ ■■.. ■ rst^usa^annmcG^acx^^Etoiscsms ^s^^^^^^tmc^si Liabilities F.R. notes.................................................................... 41,992 41,778 41,620 41,319 40,994 41,642 40,936 39,339 Deposits: Member bank reserves......................................... 21,459 20,962 20,461 19,944 19,712 20,999 20,648 19,794 U.S. Treasurer—General account..................... 352 724 658 1,030 1,768 1,123 1,581 416 Foreign.................................................................... 131 168 136 145 147 135 168 174 Other: IMF gold deposit*........................................ 233 233 233 233 233 233 233 211 A11 other.............................................................. 195 184 207 207 181 430 207 377 Total deposits............................................................. 22,370 22,271 21,695 21,559 22,041 22,920 22,837 20,972 Deferred availability cash items............................. 6,379 6,676 6,389 6,042 5,780 5,972 5,243 5,369 Other liabilities and accrued dividends................. 308 301 307 317 301 296 337 238 Total liabilities........................................................... 71,049 71,026 70,011 69,237 69,116 70,830 69,353 65,918 Capital accounts Capital paid in........................................................... 594 593 591 591 592 598 591 570 Surplus......................................................................... 570 570 570 570 570 598 570 570 Other capital accounts............................................. 184 142 100 228 185 189 Total liabUities and capital accounts.................... 72,397 72,331 71,272 70,626 70,463 72,026 70,703 67,058 Ratio of gold certificate reserves to F.R. note liability (per cent) 2.................................................... 28.0 28.1 28.3 28.5 29.9 27.1 29.9 31.5 Contingent liability on acceptances purchased for foreign correspondents........................................ 157 143 146 144 153 156 151 191 U.S. Govt, securities held in custody for foreign account.................................................................... 9,630 9,360 8,698 9,303 9,410 9,223 9,456 7,036 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)............. 44,283 44,076 43,858 43,537 43,285 44,311 43,279 42,218 Collateral held against notes outstanding: Gold certificate account...................................... 6,643 6,643 6,632 6,622 6,589 6,663 6,589 6,505 Eligible paper................................ 2 U.S. Govt, securities.............................................. 38,606 38,511 38,411 38,231 37,941 38,606 37,941 36,956 Total collateral.................................................... 45,249 45,154 45,043 44,853 44,530 45,269 44,530 43,463 1 See note 1(b) to table at bottom of p. A-68. 2 Computed from statements for all Federal Reserve Banks combined. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ FEDERAL RESERVE BANKS A-13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON DECEMBER 31, 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 la le n v d e­ m R o ic n h d ­ At t l a an­ C ca h g i o ­ Lo S u t. i s M ap in o n li e s ­ K C s a a it s n y ­ Dallas F c S r i a s a c n n o ­ Amts Gold certificate account........................ 9,550 588 2,320 560 766 835 552 1,679 370 163 323 318 1,076 Redemption fund for F.R. notes........ 1,931 110 472 102 155 173 107 328 67 32 72 70 243 Total gold certificate reserves............... 11,481 698 2,792 662 921 1,008 659 2,007 437 195 395 388 1,319 F.R. notes of other Banks.................... 727 71 173 49 65 53 64 54 34 17 35 31 81 Other cash................................................. 360 23 43 9 48 21 42 67 34 4 18 14 37 Discounts and advances: Secured by U.S. Govt, securities... 141 2 48 1 ♦ 2 .............9 1 2 7 6 63 Acceptances: Bought outright............................... 75 75 Held under repurchase agreements. 89 89 Federal agency obligations—Held under repurchase agreements....... 38 38 U.S. Govt, securities: Bought outright............................ 48,980 2,512 12,318 2,526 3,743 3,607 2,725 7,817 1,768 952 1,972 2,047 6,993 Held under repurchase agreements. 132 132 Total loans and securities..................... 49,455 2,514 12,700 2,527 3,743 3,609 2,725 7,826 1,769 954 1,979 2,053 7,056 Cash items in process of collection... 11,042 695 2,083 631 740 887 913 1,899 501 336 733 626 998 Bank premises........................................ 112 3 10 2 5 7 20 18 9 3 17 9 9 Other assets: Denominated in foreign currencies. 1,604 77 >418 83 144 83 99 233 56 38 71 93 209 IMF gold deposited1......................... 233 233 All other................................................ 316 18 80 16 26 25 18 48 11 6 12 13 43 Total assets............................................... 75,330 4,099 18,532 3,979 5,692 5,693 4,540 12,152 2,851 1,553 3,260 3,227 9,752 , , , -■■■. ■■HU---- ■ 1 .' . - -.1 u ■ • t UXLV. .Hl xi La. i, ■ ■ .~^- ■ 1 f . UI M .IJ---■- ■ '■ Liabilities F.R. notes................................................. 42,369 2,496 9,854 2,444 3,404 3,882 2,432 7,408 1,569 717 1,575 1,433 5,155 Deposits: Member bank reserves.................. 20,999 870 5,994 853 1,449 941 1,165 2,918 754 507 957 1,150 3,441 U.S. Treasurer—General account.. 1.123 83 233 77 66 78 83 107 71 48 97 61 119 Foreign.................................................. 135 7 3 31 7 13 7 9 21 5 3 6 8 18 Other: IMF gold deposit 2........................ 233 233 All other. ......................................... 430 9 232 26 13 19 11 31 7 5 9 10 58 Total deposits........................................... 22,920 969 6,723 963 1,541 1,045 1,268 3,077 837 563 1,069 1,229 3,636 Deferred availability cash items.......... 8,549 561 1,570 493 617 682 749 1,446 394 238 551 485 763 Other liabilities and accrued dividends 296 15 77 15 22 22 15 47 11 7 13 12 40 Total liabilities........................................ 74,134 4,041 18,224 3,915 5,584 5,631 4,464 11,978 2,811 1,525 3,208 3,159 9,594 Capital accounts Capital paid in......................................... 598 29 154 32 54 31 38 87 20 14 26 34 79 Surplus....................................................... 598 29 154 32 54 31 38 87 20 14 26 34 79 Other capital accounts................... Total liabilities and capital accounts.. 75,330 4,099 18,532 3,979 5,692 5,693 4,540 12,152 2,851 1,553 3,260 3,227 9,752 Ratio of gold certificate reserves to F.R. note liability (per cent): Dec. 31, 1967.............................. 27.1 28.0 28.3 27.1 27.1 26.0 27.1 27.1 27.9 27.2 25.1 27.1 25.6 Nov. 30, 1967.............................. 29.9 29.8 28.1 30.8 26.2 31.2 32.1 32.3 30.8 33.0 30.9 32.0 28.2 Dec. 31, 1966.............................. 31.5 32.5 27.0 34.5 29.7 32.6 31.1 29.6 36.3 34.7 31.3 56.1 33.6 Contingent liability on acceptances purchased for foreign correspond­ ents..................................................... 156 8 <40 8 14 8 10 23 5 4 7 9 20 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS F.R. notes outstanding (issued to Bank)................................................. 44,311 2,601 10,321 2,507 3,644 4,005 2,549 7,692 1,636 747 1,647 1,539 5,423 Collateral held against notes out­ standing: Gold certificate account.................... 6,663 450 1,000 525 600 640 450 1,400 331 127 225 180 735 U.S. Govt/securities.......................... 38,606 2,176 9,400 2,100 3,100 3,395 2,150 6,450 1,370 635 1,450 1,380 5,000 Total collateral................................ 45,269 2,626 10,400 2,625 3,700 4,035 2,600 7,850 1,701 762 1,675 1,560 5,735 1 After deducting $1,186 million participations of other F.R. Banks. 3 After deducting $104 million participations of other F.R. Banks. 2 See note 2 to table at bottom of p. A-68. 4 After deducting $116 million participations of other F.R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-14 FEDERAL RESERVE BANKS; BANK DEBITS □ JANUARY 1968 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 Dec. 27 Dec. 20 Dec. 13 Dec. 6 Nov. 29 Dec. 31 Nov. 30 Dec. 31 Discounts and advances—Total....................................... 341 419 156 124 136 141 76 173 Within 15 days.................................................................. 338 416 154 121 132 139 73 168 16 days to 90 days............................................................ 3 3 2 3 4 2 3 5 Q1 days to 1 year.............................................................. Acceptances—Total.............................................................. 153 74 135 118 59 164 59 193 Within 15 days.................................................................. 9! 10 77 61 12 101 11 135 16 days to 90 days............................................................ 62 64 58 57 47 63 48 58 91 days to 1 year.............................................................. U.S. Government securities—Total................................. 49,205 48,740 48,853 48,853 48,545 49,150 48,954 44,316 Within 15 days*................................................................ 2,555 2,414 1,949 1,882 2,237 1,365 1,568 1,169 16 days to 90 days............................................................ 7,835 7,640 8,124 8,266 7,569 8,551 7,658 9,415 91 days to 1 year.............................................................. 21,243 21,114 21,039 20,964 20,998 21,662 21,987 24,881 Over 1 year to 5 years..................................................... 16,185 16,185 16,258 16,258 16,258 16,185 16,258 7,458 Over 5 years to 10 years................................................. 832 832 928 928 928 832 928 991 Over 10 years.................................................................... 555 555 555 555 555 555 555 402 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o e u rl n in d g s B f e r l a g n i c a s n C d a o n l a la d r ia s n F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese N gu l e a i t l n h d d e e s r r s ­ f S r w an is c s s 1966__Dec................................. 875 594 55 2 1 216 3 1 • 3 1967—Feb.................................. 293 228 55 3 1 1 1 1 • 3 Mar................................. 160 96 55 3 1 1 1 * 3 Apr................................ 184 121 55 3 1 1 * 2 May................................ 149 115 25 3 1 1 1 1 * 2 June............................... 578 399 29 3 1 144 1 1 * 2 July................................. 579 566 4 3 I 2 1 1 2 Aug. > .............................. 866 761 3 3 1 94 1 * 3 Sept................................ 788 754 13 3 1 13 1 1 * 3 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts 1 Turnover of demand deposits (in billions of dollars) Period T 2 o 3 t 3 a l Leading SMSA’s T S o M ( t e a x S l c A 2 l. 3 ’s 2 o 2 th 26 er T 2 o 3 t 3 a l Leading SMSA’s T S o M ( t e a x S l c A 2 l. 3 ’ s 2 o 2 th 2 e 6 r SMSA’s N.Y. 6 others 2 N.Y.) SMSA’s SMSA’s N.Y. 6 others2 N.Y.) SMSA’s 1966—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 2,333.4 57.4 120.6 55.4 40.8 35.1 Oct.................................. 6,993.0 3,102.4 1,537.7 3,890.6 2,352.9 58.3 125.5 54.6 40.8 35.1 Nov................................ 6,997.7 3,100.8 1,557.8 3,896.9 2,339.1 58.4 130.2 55.7 41.2 34.8 Dec................................. 7,047.0 3,149.7 1,515.4 3,897.3 2,381.9 58.5 122.1 54.6 41.1 35.3 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For a description of series, see Mar. 1965 Bulletin, p. 390. All data shown here are revised. For description of revision, sec Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ U.S. CURRENCY A-15 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 3,044 724 1,433 261 556 24 46 1945........................ 28,515 20,683 1,274 1,039 73 2,313 61782 9,201 7 J 834 2,327 4,220 454 801 7 24 1947........................ 28^868 20,020 1,404 11048 65 2,110 6; 275 9,119 81850 21548 51070 428 782 5 17 1950........................ 27^741 19,305 11554 1,113 64 2'049 5^998 8,529 8,438 2,422 5,043 368 588 4 12 1955 ........................ 3ij38 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958........................ 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959........................ 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 I960........................ 32,869 23,521 2,427 1,533 88 2,246 6,691 101536 91348 iliis 51954 249 316 3 10 1961........................ 33,918 24,388 2,582 1,588 92 2'313 6,878 101935 9,531 2,869 6,106 242 300 3 10 1962........................ 35,338 25,356 2,782 1,636 97 2i375 7,071 11,395 9,983 2,990 61448 240 293 3 10 1963........................ 371692 26,807 3,030 1,722 103 2,469 7,373 12,109 101885 31221 7,110 249 298 3 4 1964........................ 391619 28,100 31405 1,806 111 2’517 7^543 12,71711,519 31381 7,590 248 293 2 4 1965........................ 42^056 291842 41027 1'908 127 2'618 7'794 131369 121214 3,540 81135 245 288 3 4 (966—Nov............ 44,245 31,499 4,447 1,996 137 2,684 8,076 14,15912,747 3,632 8,583 240 285 3 4 Dec............. 441663 31,695 4,480 2,051 137 2i 756 8,070 14,201 121969 31700 8,735 241 286 3 4 1967—Jan.............. 43’, 363 30,532 41461 1,939 137 2^599 7',730 13,667 12,831 3',629 8,673 239 283 3 4 Feb............. 43,585 3O,’758 41481 1,933 137 2'612 7'840 13,755 121827 3,622 8,677 239 282 3 4 Mar............ 431583 30,753 41518 11939 137 2,599 801 13,75912,831 31621 8,683 239 281 3 4 Apr............ 43,730 30,887 4,551 1,948 137 2; 607 7,817 13,827 12,844 31625 8,692 238 282 3 4 May........... 441443 31,509 4,600 l',984 137 2,671 7,979 14,138121935 3,660 8,743 238 282 6 6 44',712 31,684 41641 1,879 137 2,635 8^035 141357 131029 31699 8,805 238 280 3 4 July............ 441866 31,774 41674 1,873 137 2,625 7,989 141476131094 31724 81844 238 281 3 4 Aug............ 451071 31,884 41720 11878 136 2; 628 81001 14,521 13J86 31749 8,911 238 281 3 4 45,031 311795 4,752 1,886 136 2,621 7^949 14,451 13,236 31751 81959 238 281 3 4 Oct.............. 45,'421 321095 4,803 1,913 136 2,658 8,013 14,57213.325 31766 9,031 238 283 3 4 Nov,........... 46,463 32,937 4,863 1,965 136 2; 748 8,266 14,95713,524 3,832 9,163 239 283 3 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported un^er coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury, KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by Kind of currency s N ta o 1 n v 9 d 6 . i 7 n 30 g , A g a s o g l s d a e i c n a u n s r t d i t y Tr c e a a s s h ury B F F a . o n R r k . s A B F a g a . n e n R n d k . t s s 1967 1966 silver and Nov. 30 Oct. 31 Nov. 30 certificates Agents Gold........................................................................................ 12,907 (12,392) 2515 Gold certificates................................................................... (12,392) 312,391 1 Federal Reserve notes......................................................... 43,278 102 2,345 40,831 39,851 38,840 Treasury currency—Total.................................................. 6,775 (378) 791 352 5,631 5,571 5,405 Standard silver dollars.................................................... 485 3 482 482 482 Silver bullion.................................................................... 466 375 91 Silver certificates.............................................................. (3?8) 2 376 378 561 Fractional coin................................................................. 5,415 685 346 4,383 4,321 3,965 United States notes......................................................... 323 14 4 304 303 307 In process of retirement4............................................... 86 86 86 90 Total—Nov. 30, 1967......................................................... 562,960 (12,770) 1,408 12,391 2,698 46,463 Oct. 31,1967......................................................... 562,218 (12,792) 1,451 12,408 2,937 45,421 Nov. 30, 1966......................................................... 5 61,001 (13,238) 1,151 12,666 2,938 44,245 1 Outside Treasury and F.R. Banks. Includes any paper currency held s 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. A-5. 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 Treasuiy. For explanation of currency notes. reserves and security features, see the Circulation Statement or the Aug. * 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

A-16 MONEY SUPPLY; BANK RESERVES □ JANUARY 1968 MONEY SUPPLY AND RELATED DATA (In billions of dollars) Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U.S. deposits deposits Govt, Total c C om ur p r o e n nc e y n t co D d m e e m p p o o a n s n i e t d n t jus a t d ed ­ 1 Total c C om ur p r o e n n e cy n t c D o d m e e m p p o o a s n n i e t d n t jus a t d ed ­ 1 d d e e p m os a i n ts d ’ 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—Dec........................................................ 170.4 38.3 132.1 158.6 175 8 39.1 136 7 156 9 34 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 49 Apr,....................................................... 172.7 39.1 133.6 168.1 173.6 38.7 134.9 168.8 48 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 39.5 138.4 174.6 175.8 39.6 136.2 175 1 5 6 Auk. 179/1 39.6 139.6 177.2 175,9 39.6 136.2 177'7 43 Sept............................................... 179.2 39.8 139.5 178.9 178.4 39.8 138,6 i?8.9 5 0 180.3 39.9 140.3 180.8 180.6 40.0 140.6 180 3 6 2 Nov........................................................ 181.2 40.0 141.2 182.5 182.5 40.4 142.1 181.1 5 2 Dec,1’.................................................... 181.5 40.4 141.1 183.8 187.2 41.2 146.0 181.8 5.0 Week ending— 1967—Nov. 1................................................. 180.3 39.8 140,5 181.6 181.6 39.7 141.9 180.9 6.3 8............................................... 181.3 40.0 141,3 181.7 182.7 40.4 142.3 180.9 5 7 15..................................... 181,3 40,0 141.4 182,3 183.0 40.4 142,6 181.1 4 2 22............................................... 181.2 40,1 141.1 182.9 182.1 40.6 141.5 180.9 5.9 29................................................ 181.1 40.1 141.0 183.2 182.0 40.6 141.4 181.4 5 2 Dec. 6................................................ 181.5 40.1 141.4 183,8 185.0 40.9 144.1 181.6 4 8 13”.............................................. 180.9 40.3 140.6 184.1 185.4 41.2 144.2 181.9 3.2 20”.............................................. 180.7 40.3 140.4 183.9 187.8 41.2 146.7 181.5 4 7 27 p.............................................. 182.0 40.5 141.5 183.6 188.0 41.6 146.4 181.8 6.9 1 At all commercial banks. and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ Note.—Revised data, For description of revision of series and for back rency outside the Treasury, F.R. Banks, and vaults of all commercial data beginning Jan. 1959, see Aug. 1967 Bulletin, pp. 1303-16; for banks. Time deposits adjusted are time deposits at all commercial monthly data 1947-58, see June 1964 Bulletin, pp. 679-89. banks other than those due to domestic commercial banks and the Averages of dally figures. Money supply consists of (1) demand U.S. Govt. Effective June 9, 1966, balances accumulated for payment of deposits at all commercial banks other than those due to domestic com­ personal loans were reclassified for reserve purposes and are excluded from mercial banks and the U.S. Govt., less cash items in process of collection time deposits reported by member banks. AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Seasonally adjusted Not sea sonaliy adjusted Member bank reserves I 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 reserves 1 re D se e r p v o e s i r t e s q s u u i b re je m ct e n to ts 2 Period Total r N b ow o o r n e ­ d ­ qu R ir e e ­ d Total s T a a v i n m in d e g s de v P m a r a t i e ­ n d d G e U m o .S v an t . , d Total r N o b w o or n e ­ d ­ qu R i e re ­ d Total sa T a v i n m in d e g s de v P m a r a t i e ­ n d d G e U m o .S v a t n . , d 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—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 23.45 262.4 142.5 116.7 3.2 23.91 23.82 23.55 263.2 143.1 115.1 5.1 Aug....... 24.10 24.09 23.76 266.1 144.8 117.6 3.7 23.79 23.70 23.40 263.7 145.2 114.8 3.7 Sept....... 24.30 24.18 23.94 268.4 146.3 117.6 4.5 24.20 24.11 23.84 267.3 146.0 116.9 4.4 Oct........ 24.61 24.43 24.30 271.1 147.4 118.1 5.6 24.61 24.48 24.32 271,1 rl47.0 118.5 5.7 Nov.. . . 24.77 24.66 24.41 272,9 148.9 118.7 5.3 24.74 24.61 24,34 271.9 147.6 119.7 4.6 Dec.”... 24.61 24.35 24.40 272.9 149.9 118.6 4.3 25.25 25.01 24.91 275.9 148.1 123.3 4.4 1 Averages of daily figures. Back data on member bank reserves adjust­ and demand balances due from domestic commercial banks. Effective 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

JANUARY 1968 □ BANKS AND THE MONETARY SYSTEM A-17 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capita! Total Bank credit assets, net— Treas­ Total Date c u u r r y ­ U.S. Government securities li i a t b ie i s l ­ Total Ca a p n i d ta l Gold rency Other and deposits misc. st o a u n t d ­ ­ Total n L e o t a n 1, s , 2 C a o n m d l. Federal r s i e ti c e u s ­ 2 ca n p e it t al, cur a r n e d n cy co a u c n ­ ts, ing Total savings Reserve Other3 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;667 60;366 96,560 72'894 20.’778 2,’888 14;741 199,’008 184,384 14,624 1963—Dec. 20..................... 15,582 5^86 333,203 189,433 103,273 69,068 33,552 653 40,497 354'371 323,251 31 \ 118 1965—Dec. 31..................... 13,733 5’575 399,779 242,706 106,716 65'016 40,768 932 50,357 419,087 383,727 35,359 1966—June 30..................... 13,434 5^78 410,775 254,693 101’630 58'625 42 J 69 836 54'452 43b;i87 391 ',731 38,454 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 55,700 438,300 396,900 41,400 Feb. 22..................... 13,100 6^400 420,700 256,300 107'300 61'300 44^700 1'400 57;200 44b;300 396,900 43,400 Mar. 29..................... 13,100 6^500 426'100 259^700 107'700 62'500 44,500 700 581*700 445;700 403,500 42,200 Apr. 26..................... 13’,100 6',600 430,600 262,100 107^600 60^600 45^400 1,500 61,000 450;300 406;900 43,400 May 31..................... 13,100 6'600 432,800 263,000 107,800 60^300 46,100 1 '400 62,000 452,500 408’,300 44,200 13,110 6,612 439,966 268,967 106,752 58,537 46,718 1,497 64,247 459,688 416,122 43;567 July 26..................... 13,100 6,600 442,600 268,200 109 J 800 61'500 46,900 1,400 64;600 462,300 4171800 44,500 13,000 6'700 445,600 268^500 111,200 63,500 46,200 1,500 65,900 465,300 418,600 46;700 Sept. 27. • 13,000 6^800 451,200 272,000 112,600 64,500 46,700 1,400 66,600 470,900 424,400 46,600 Oct. 25”................... 13,000 6'800 454 700 272,400 115,000 66,600 47,100 1 J00 67,300 474,500 428,300 46,200 Nov. 29 rP................. 12,900 6^800 458,000 273,000 117,100 67i300 48,500 J ,300 68,000 477 ,'800 431,300 46;500 Dec. 27p................... 12,400 6,800 465,300 279,300 117,400 67,000 49 ,'200 1,200 68,700 484 ,'600 438,400 46 ,'200 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date For- Total o b r u C e a t n u n s c i r k d y - s e d ju m e s D p a t a o d e e n s d ­ ­ d i ts 5 Total o b u C a t u n si r k d - s e d ju m e s D p a t a o d e e n d s ­ ­ d i ts 5 Total b m C a e n o r k m c s ia - l 1 b M sa a v u n i t k n u s g a s l 6 S P t a S e o v y m s i s t n a ­ 3 g l s ^j T h c i r u n o a e r l g s a d y h s s ­ ­ s b a c a a o v A n n m in d t k l g s . s B F A a .R n t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30... . 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1963—Dec. 20.... 153,100 31,700 121,400 158,104 33,468 124,636 155,713 110,794 44,467 452 1,206 392 6,986 850 1965—Dec. 31.... 167,100 35,400 131,700 175,314 36,999 138,315 199,427 146,433 52,686 309 1,780 760 5,778 668 1966—June 30.... 167,600 36,300 131,300 168,089 37,128 130,961 208,647 154,798 53,657 192 1,943 1 ,049 11,237 766 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 5,238 416 1967—Jan. 25.... 168,800 37,900 130,900 171,000 37,400 133,600 217,500 161,800 55,600 100 1,800 1,200 4,900 400 Feb. 22.... 167,700 38,300 129,400 166,800 37,800 129,000 220,200 164,200 55,900 100 1,800 1,200 6,400 400 Mar. 29.... 172,200 38,000 134,200 169,700 37,600 132,100 224,300 167,500 56,700 100 1,800 1,300 5,800 700 Apr. 26.... 170,600 38,000 132,600 170,600 37,700 132,900 225,600 168,600 56,900 100 1,700 1,400 6,700 800 May 31.... 173,300 38,600 134,700 171,200 38,500 132,700 228,900 171,500 57,300 100 1,900 1,400 4,400 600 June 30... . 174,100 38,400 135,700 174,328 39,681 134,647 231,780 173,566 58,161 53 1,804 1,472 5,427 1,311 July 26.... 173,500 38,500 135,000 173,300 38,600 134,700 233,600 175,300 58,300 1,800 1,500 6,200 1,300 Aug. 30.... 175,100 38,400 136,700 173,500 38,600 134,900 236,500 177,900 58,600 11900 1 J00 3,900 I 300 Sept. 27.... 176 600 38 600 138,000 175,500 38,700 136,800 237,500 178,300 5% 200 1,900 1,500 7,300 711 Oct. 253\.. 177 200 39,100 138 100 177’900 39,000 138,900 239,100 179,800 59,300 1,900 1 300 6,900 900 Nov. 29r*.. 178,300 39,000 139,300 180,700 39,700 141,000 240,300 180,800 59,600 1 ,’900 1,500 5,200 1,800 Dec. ZIP... 181,000 39,500 141,500 186,600 40,400 146'200 241,100 181,100 60,000 2,100 1 ,'400 6;900 400 1 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits June 1961, also includes certain accounts previously classified as other lia­ accumulated for payment of personal loans” were excluded from “Time bilities. deposits” and deducted from “Loans” at all commercial banks. These 7 Reclassification of deposits of foreign central banks in May 1961 re­ changes resulted from a change in Federal Reserve regulations. These hy­ duced this item by $1,900 million ($1,500 million to time deposits and $4 00 pothecated deposits are shown in a table on p. A-21. million to demand deposits). 2 See note 2 at bottom of p. A-21. 3 After June 30, 1967, Postal Savings System accounts were eliminated Note.—For back figures and descriptions of the consolidated condition from this Statement. statement and the seasonally adjusted series on currency outside banks 4 Series begin in 1946; data are available only last Wed. of month. and demand deposits adjusted, see “Banks and the Monetary System,” 5 Other than interbank and U.S. Govt., less cash items in process of Section 1 of Supplement to Banking and Monetary Statistics, 1962, and collection. Bulletins for Jan. 1948 and Feb. 1960. Except on call dates, figures 6 Includes relatively small amounts of demand deposits. Beginning with are partly estimated and are rounded to the nearest $100 million. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-18 COMMERCIAL AND MUTUAL SAVINGS BANKS □ JANUARY 1968 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 t a e nk Total Lo 1 a ,2 ns G U o . v S t . . Other a C ss a e s t h s 3 c b a i a a l p l n i c i t i a d i ­ t e a ­ s l Total3 m D a e n ­ d Time Demand Time r B in o o w g r s ­ ­ c c T a o a p o u c t i n t ­ a a t l s l N b b a u o n e m f r k s ­ counts* G U o .S vt . . Other All banks: 1941—Dec. 31.. 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31.. 140,227 30,361 101,288 8,577 35,415 177,332 165,612 14,065 105,935 45,613 227 10,542 14,553 1947—Dec. 31«. 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 66 11,948 14,714 1965—Dec. 31 . 362,320 246,946 65,01650,357 61,916435,483 385,196 18,426 1,009 5,532 160,847 199,381 4,564 34,935 14,309 1966—June 30 371,684 258,607 58,62554,452 60,978 444,807 391,731 17,034 1,099 11,005 153,907 208,687 4,444 36,071 14,307 Dec. 31 381,684266,022 60,91654,74570,085464,376407,63719,770 968 4,999167,821 214,078 4,92936,926 14,271 1967—Jan. 25 379,860 263,530 60,680 55,65059,570 451,390392,970 16,050 1,110 4,680 153,470 217,660 7,010 36,910 14,266 Feb. 22 380,920 262,430 61,30057,19061,260 454,340394,860 16,640 1,180 6,200 150,490220,350 6,740 37,140 14,260 Mar. 29.. 387,050265,860 62,47058,72058,500 457,800399,140 16,350 1,350 5,520 151,510 224,410 6,270 37,380 14,264 Apr. 26. . 389,660 268,040 60,630 60,99061,450 463,590404,530 16,560 1,350 6,440 154,430 225,750 6,640 37,440 14,262 May 31.. 391,880269,630 60,26061,99064,810 469,530409,520 17,520 1,370 4,160 157,450 229,020 7,080 37,800 14,246 June 30.. 396,754 273,970 58,53764,24766,210 476,268 417,790 18,030 1,469 5,159 161,138231,995 5,208 38,217 14,247 July 26.. 401,010 274,930 61,510 64,57063,150477,020416,12017,020 1,480 5,920 157,800 233,900 6,910 37,940 14,247 Aug. 30.. 404,280 274,870 63,51065,90059,840 476,930414,950 16,750 1,550 3,640 156,220 236,790 6,520 38,330 14,245 Sept. 27.. 409,200 278,140 64,500 66,56062,300484,480422,660 17,040 1,530 7,020 159,300 237,770 6,470 38,160 14,244 Oct. 25 ”. 412,380278,430 66,63067,320 62,300 487,590425,67017,170 1,430 6,680 161,030 239,360 6,140 38,650 14,236 Nov. 29'” 414,960279,740 67,250 67,970 62,650 490,560427,610 16,970 1,340 4,980163,730 240,590 6,920 38,890 14,240 Dec. 27”. 422,970287,250 67,04068,68072,760509,130443,900 19,500 1,320 6,630175,120241,330 8,50038,910 14,230 Commercial banks: 1941—Dec. 31. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44.349 15,952 23 7,173 14,278 1945—Dec. 31. 124,019 26,083 90,606 7,331 34,806160,312 150,227 14,065 105.921 30,241 219 8,950 14,011 1947—Dec. 316 116,284 38,057 69,221 9,00637,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1965—Dec. 31. 306,060 201,658 59,54744,855 60,899 377,264 332,436 18,426 1,008 5,525160,780146,697 4,472 30,272 13,804 1966—June 30. 314,238 211,980 53,503 48,755 60,013 385,393 338,004 17,034 1 ,098 10,998153,846155,029 4,353 31,309 13,802 Dec. 31. 322,661 217,726 56,16348,77269,119403,368352,28719,770 967 4,992167,751 158,806 4,85932,054 13,767 1967—Jan. 25 320,320 214,970 56,000 49,350 58,600 389,820337,320 16,050 1,110 4,680153,410162,070 7,010 32,050 13,762 Feb. 22 320,890 213,600 56,600 50,690 60,220 392,220338,87016,640 1,180 6,200150,430164,420 6,740 32,240 13,756 Mar. 29.. 326,570 216,750 57,830 51,990 57,360 395,100342,400 16,350 1,350 5,520151,450167,730 6,270 32,470 13,760 Apr. 26.. 328,830 218,730 56,150 53,950 60,380 400,610347,590 16,560 1,350 6,440154,370168,870 6,640 32,580 13,758 May 31.. 330,400 219,880 55,830 54,690 63,710 405,880352,14017,520 1,370 4,160157,380171,710 7,080 32,880 13,743 June 30.. 334,857 223,952 54,233 56,671 65,059 412,118359,531 18,029 1,468 5,152161,048173,833 5,166 33,285 13,744 July 26.. 338,570 224,780 57,110 56,680 62,070 412,380357,75017,020 1,480 5,920157,730175,600 6,910 33,030 13,746 Aug. 30.. 341,230 224,340 59,140 57,750 58,810 411,730356,250 16,750 1,550 3,640156,150178,160 6,520 33,360 13,744 Sept. 27.. 345,780 227,430 60,090 58,260 61,300 418,910363,390 17,040 1,530 7,020159,230178,570 6,470 33,190 13,743 Oct. 25 ”. 348,810 227,420 62,370 59,020 61,300421,870366,250 17,170 1,430 6,680160,940180,030 6,140 33,680 13,735 Nov. 29 ”, 350,950 228,460 62,850 59,640 61,730 424,500367,950 16,970 1,340 4,980163,640181,020 6,920 33,890 13,739 Dec. 27” 358,560235,720 62,54060,30071,840442,670383,84019,500 1,320 6,630175,030181,360 8,50033,910 13,729 Member banks: 1941—Dec. 31 43,521 18,021 19,539 5,961 23,123 68,121 61,717 10,385 140 1,709 37,136 12,347 5,886 6,619 1945—Dec. 31 107,183 22,775 78,338 6,070 29,845 138,304 129,670 13,576 6422,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 97,846 32,628 57,914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1965—Dec. 31 251,577 169,800 44,99236,785 52,814313,384 275,517 17,454 840 4,890132,131 120,202 4,234 24,926 6,221 1966—June 30 257,767 178,257 39,94239,569 52,853 320,350 280,339 16,164 928 9,979126,572126,696 3,985 25,678 6,194 Dec. 31 263,687182,802 41,92438,96060,738334,559291,06318,788 794 4,432138,218 128,831 4,61826,278 6,150 1967—Jan. 25. 261,583180,244 41,773 39,56651,387 322,412 277,460 15,228 937 4,161 125,481 131,653 6,63826,285 6,137 Feb. 22. 262,135 178,958 42,404 40,77352,973 324,753 279,014 15,828 1,006 5,506123,124133,550 6,426 26,453 6,130 Mar. 29. 267,086 181,604 43,545 41,93750,276 327,040 281,903 15,547 1,172 4,857124,096136,231 6,04426,639 6,129 Apr. 26. 268,466182,821 42,001 43,64453,487 331,864286,486 15,742 1,172 5,899126,642137,031 6,400 26,749 6,127 May 31. 269,654183,480 41,900 44,27456,487336,422290,441 16,716 1,194 3,629129,570139,332 6,765 27,009 6,113 June 30. 273,266186,814 40,636 45,81657,391 341,290 296,548 17,167 1,314 4,580132,546140,942 4,920 27,237 6,108 July 26. 276,381 187,536 42,957 45,88855,166 341,784294,976 16,187 1,326 5,286129,674142,503 6,62527,061 6,108 Aug. 30. 278,259 187,130 44,41646,71352,060 340,576 293,115 15,891 1,393 3,128128,086144,617 6,209 27,318 6,100 Sept. 27. 281,993 189,870 45,003 47,12054,477346,853299,334 16,162 1,377 6,318130,683144,794 6,141 27,233 6,095 Oct. 25. 284,341 189,676 46,967 47,698 54,470 349,107 301,584 16,284 1,275 6,0511132,075 145,899 5,808 27,575 6,086 Nov. 29.. 285,700190,515 47,091 48,094 54,809 350,888302,689 16,082 1,189 4,356134,283 146,779 6,456 27,734 6,083 Dec. 27” 292,480196,949 46,85548,67663,931 367,197316,793 18,541 1,164 5,916144,159147,013 7,991 27,760 6,073 Mutual savings banks: 1941—Dec. 31.. 10,379 4,901 3,704 1,774 793 11,804 10,533 10,527 1,241 548 1945—Dec. 31.. 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 7 1,592 542 1947—Dec. 31«. 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—June 30.. 57,446 46,627 5,122 5,697 965 59,414 53,727 7 61 53,657 92 4,761 505 Dec. 31.. 59,023 48,296 4,753 5,973 966 61,008 55,350 ........... i 7 70 55,271 69 4,871 504 1967—Ian. 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 6,500 040 62,120 55,990 60 55,930 4,900 504 Mar. 29. 60,480 49,110 4,640 6,730 140 62,700 56,740 60 56,680 4,910 504 Apr. 26. 60,830 49,310 4,480 7,040 070 62,980 56,940 60 56,880 4,860 504 May 31. 61,480 49,750 4,430 7,300 100 63,650 57,380 70 57,310 4,920 503 June 30. 61,898 50,018 4,304 7,576 152 64,150 58,259 7 90 58,161 42 4,932 503 July 26. 62,440 50,150 4,400 7,890 080 64,640 58,370 70 58,300 4,910 501 Aug. 30. 63,050 50,530 4,370 8,150 030 65,200 58,700 70 58,630 4,970 501 Sept. 27. 63,420 50,710 4,410 8,300 000 65,570 59,270 70 59,200 4,970 501 Oct. 25. 63,570 51,010 4,260 8,300 000 65,720 59,420 90 59,330 4,970 501 Nov. 29' 64,010 51,280 4,400 8,330 920 66,060 59,660 90 59,570 5,000 501 Dec. 27” 64,410 51,530 4,500 8,380 920 66,460 60,060 90 59,970 5,000 501 For notes see p. A-21. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ COMMERCIAL AND MUTUAL SAVINGS BANKS A-19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits ToUl assets— Securities Total Interbank 3 Other lia­ Bor­ Total Num­ Class of bank Cash bilities row­ capital ber and date Total Lo 1 a ,2 ns G U o . v S t . . Oth 2 er assets3 c c o a a a u p n c n i d ­ t t a s l 4 Total 3 m D a e n ­ d Time U. D S. e ma O n t d her Time1 ings co a u c n ­ ts ba o n f k s Oovt. Reserve city member banks: New York City:?’8 1941—Dec. 31............... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31............... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31............... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1965—Dec. 31.................... 44,763 33,125 5,203 6,435 11,876 59,517 49,270 5,225 522 1,271 24,26517,988 1,987 5,114 12 1966—June 30................... 46,453 35,796 4,466 6,192 12.930 62,408 51,799 5,869 606 2,279 24,02019,025 1,293 5,179 12 Dec. 31.................... 46,536 35,941 4,920 5,67414,869 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 5,76911,545 60,042 47,414 5,003 551 848 22,82618,186 2,013 5,323 12 Feb. 22.................... 45,474 34,396 5,115 5,96312,200 60,537 47,404 4,987 601 1,065 22,54718,204 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 22,86218,499 1,920 5,450 12 Apr. 26.................... 46,656 35,541 4,766 6,34912,756 62,311 49,602 5,287 726 1,768 23,63018,191 2,163 5,485 12 May 31.................... 46,240 35,151 5,130 5,95915,394 64,794 51,682 5,954 733 695 25,59418,706 2,416 5,598 12 June 30 47,701 36,441 5,048 6,212 14,688 65,668 52,665 6,183 817 1,021 25,65618,987 1,841 5,604 12 July 26.................... 48,380 36,683 5,408 6,28914,431 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 6,52712,940 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 24,50619,731 1,688 5,680 12 Oct. 25.................... 49,718 36,480 6,443 6,795 13,672 66,592 52,552 5,252 757 1,719 24,80220,022 1,695 5,708 12 Nov. 29.................... 49,805 36,799 6,257 6,74913,106 66,251 52,163 5,254 752 828 24,83620,493 1,946 5,729 12 Dec. 27 v................. 51,975 38,977 5,930 7,068 16,512 71,971 57,246 6,553 737 1,624 28,211 20,121 2,360 5,720 12 City of Chicago: 7 1941—Dec. 31............... 2,760 954 1,430 376 1,566 4,363 4,057 1,035 .........1..27 2,419 476 .........2..88 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—June 30................... 11,715 8,567 1,585 1,564 2,322 14,490 12,385 1 ,230 43 680 5,249 5,184 521 1,152 11 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 tl 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 11 June 30................... 12,133 8,924 1,576 1,633 2,432 15,073 12,814 1,270 20 299 5,537 5,686 359 1 ,224 11 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 1,714 1.61S 2,606 15,352 12,668 1,242 11 127 5,246 6,042 498 1,226 11 Sept. 27................... 12,249 9,065 1,574 1,610 2,791 15,556 ■2,986 1,230 14 432 5,346 5,964 490 1,224 11 Oct. 25 12,300 8,904 1,652 1,744 2,623 15,416 12,943 1,224 8 347 5,385 5,979 416 1,234 11 Nov. 29.................... 12,350 8,843 1,701 1,806 2,560 15,375 12,860 1,156 9 227 5,430 6,038 650 1,225 10 Dec. 27"................. 12,830 9,386 1,571 1,873 2,995 16,353 13,605 1,302 6 379 5,932 5,986 653 1,232 10 Other reserve city:’’1 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 28,99011,423 1 2,844 353 1965-Dec. 31................... 91,997 65,117 14,354 12,52621,147 116,350103,034 8,422 206 1,773 47,09245,541 1,548 9,007 171 1966—June 30................... 93,831 67,779 12,182 13,86920,764 118,152103,985 7,153 215 3,968 44,51948,131 1,756 9,297 170 Dec. 31.................... 95,831. 69,464 13,04013,32624,228123,863 108,804 8,593 233 1,633 49,00449,341 1,952 9,471 169 1967—Jan. 25.................... 95,162 68,491 12,875 13,79620,283 118,870103,332 7,065 306 1,752 43,83050,379 2,807 9,465 168 Feb. 22.................... 95,797 68,077 13,199 14,521 21,113 120,402104,520 7,598 327 2,336 42,97851,281 2,957 9,481 168 Mar. 29.................... 97,875 68,880 13,72415,271 19,706 121,135105,418 7,387 361 1,825 43,54452,301 2,725 9,589 167 Apr. 26.................... 97,913 68,684 13,065 16,16421,543 123,100107,154 7,290 371 2,334 44,52252,637 3,050 9,642 166 Moy 31.................... 98,906 69,174 12,938 16,79421,164123,823 107,604 7,477 386 1,375 45,11453,252 3,072 9,701 166 June 30................... 99,460 69,765 12,455 17,24022,222 125,502 110,225 7,667 370 1,880 46,39653,912 2,109 9.755 166 July 26.................... 100,800 69,989 13,437 17,37421,178 125,666109,736 7,390 411 2,280 45,45654,199 2,862 9,739 165 Aug. 30.................... 101,242 70,004 13,733 17,50520,084125,091 108,768 7,514 446 1,198 44,751 54,859 2,959 9,792 165 Sept. 27................... 102,633 71,321 13,92617,38621,617 128,028 111,366 7,532 478 2,499 45,83455,023 3,304 9,840 164 Oct. 25.................... 103,434 71,515 14,40917,51021,311 128,525 112,050 7,705 404 2,474 46,27855,189 3,037 9,887 162 Nov. 29................... 103,221 71,628 14,127 17,46621,957 128,973 112,429 7,555 322 1,803 47,33555,414 2,937 9,931 163 Dec. 27"................. 105,703 73,834 14,405 17,46425,083 134,702 116,989 8,397 315 2,189 50,43055,658 3,952 9,956 163 Country member banka:7’8 1941—Dec. 31............... 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31................... 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31.................... 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1965—Dec. 31................... 103,362 63,338 23,735 16,288 17,366 123,227 110,738 2,371 74 1,501 55,11851,675 343 9,673 6,027 1966—June 30................... 105,768 66,115 21,709 17,94416,836 125,301 112,170 1,912 64 3,052 52,785 54,357 41610,050 6,001 Dec. 31.................... 109,518 68,641 22,41918,45819,004131,338117,749 2,392 69 1,474 56,67257,144 30810,309 5,958 1967—Jan. 25.................... 109,017 68,225 22,411 18,381 16,886 128,721 115,009 1,991 64 1,370 53,59957,985 74610,301 5,946 Feb. 22.................... 109,048 68,057 22,36018,631 17,051 128,935 115,112 1,975 64 1,820 52,40758,846 63010,335 5,939 Mar. 29.................... 110,439 69,056 22,491 18,89216,600129,920116,201 1,950 64 1,751 52,50659,930 44810,407 5,939 Apr. 26.................... 111,770 70,121 22,284 19,365 16,612131,277117,385 1,983 64 1,427 53,22660,685 48510,420 5,938 May 31.................... 112,513 70,729 22,01019,774 17,238 132,634118,522 1,966 64 1,405 53,37461,713 633 10,487 5,924 June 30.................... 113,972 71,684 21,55720,731 18,049 135,047 120,845 2,047 106 1,380 54,95662,356 611 10,655 5,919 July 26.................... 114,929 71,903 22,43320,593 16,637134,452120,410 1,981 69 1,523 54,04862,789 57210,508 5,920 Aug. 30.................... 116,244 71,843 23,33521,06616,430135,435 121,040 2,033 69 1,229 54,07863,631 61210,637 5,912 Sept. 27.................... 117,676 72,503 23,90421,26916,863 137,318 122,932 2,089 69 1,701 54,99764.076 659 10,489 5,908 Oct. 25.................... 118,889 72,777 24,46321,64916,864138,574124.039 2,103 106 1,511 55,61064,709 66010,746 5,901 Nov. 29.................... 120,324 73,245 25,00622,073 17,186140,289 125,237 2,117 106 1,498 56,68264,834 923 10,849 5,898 Dec. 27"................. 121,972 74,752 24,94922,271 19,341 144,171 128,953 2,289 106 1 ,724 59,58665,248 1,026 10,852 5,888 For notes sec p. A-21. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-20 COMMERCIAL AND MUTUAL SAVINGS BANKS □ JANUARY 1968 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other b c C a a l n l a l k s d s a a o n te f d Total Lo I a ■ n 2 s G U o . v S t . . Oth 2 er as C s a e s ts h 3 c c b o a i u a l a l p i i n n c a t i d i t ­ t ­ e a s s l 2 Total 3 m D a e n ­ d Time U. D S. e ma O n t d her Ti 1 m . 5 e r B in o o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l N ba b o u n e f m r k s ­ Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,554 1,762 41,298 15,699 10 6,84413,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,73413,398 1964—Dec. 31.. 275,053 174,234 62,49938,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,58027,377 13,486 1965—Dec. 31.. 303,593200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508159,659 146,084 4,32529,827 13,540 1966—Dec. 31.. 321,473217,379 55,78848,307 68,515 401,409 351,43819,497 881 4,975 166,689 159,396 4,71731,60913,533 1967—June 30.. 333,742223,707 53,871 56,164 64,545 410,308 358,745 17,778 1,399 5,135 159,991 174,441 5,05032,843 13,525 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,47316,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1964—Dec. 31.. 151,406 96,688 33,40521,312 34,064 190,289 169,615 10,521 211 3,604 84,53470,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,34725,720 36,880 219,744 193,86012,064 458 3,284 92,53385,522 2,62717,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,45612,588 437 3,035 96,75593,642 3,12018,459 4,799 1967—June 30.. 195,339132,725 29,54433,070 39,461 242,039 211,098 11,330 746 3,202 93,063 102,757 3,41919,098 4,780 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3, ^39 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1964—Dec. 31.. 77,091 51,002 15,31210,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1.452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,59834,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,56911,247 19.049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,351 1967—June 30.. 78,908 55,070 11,091 12,747 17,931 100,232 86,432 5,837 567 1,379 39,48239,166 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 27,52825,882 91 4,912 7,320 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 1967—June 30.. 59,505 35,912 13,243 10,350 7,154 68,049 61,216 611 85 555 27,44532,519 130 5,617 7,418 Noninsured nonmem­ ber commercial: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 3’9 1,291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 31 «. 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—Dec. 31.. 2,400 1,570 367 463 604 3,171 2,073 274 86 17 1,062 633 142 434 233 1967—June 30.. 2,376 1 ,517 354 506 513 3,071 2,058 251 69 16 1,057 664 116 430 218 Nonmember commercial: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 4>7 5,504 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1964—Dec. 31.. 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,64523,043 198 4,894 7,536 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,64926,495 238 5,345 7,583 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173, 560 29,53230,258 241 5,776 7,617 1967—June 30.. 61,882 37,429 13,59710,855 7,667 71,119 63,274 862 154 571 28,50233,183 246 6,048 7,636 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 2 10,351 1 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 ........... 1 2 1212,192 1,252 194 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—Dec. 31.. 51,267 42,591 3,324 5,352 847 53,047 48,254 1 6 381 47,865 69 4,140 330 1967—June 30.. 53,785 44,147 3,034 6,604 1,015 55,807 50,877 1 6 44550,424 42 4,191 332 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. 31« 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—Dec. 31.. 7,756 5,705 1,429 621 119 7,961 7,096 1 19 7,076 732 174 1967—June 30.. 8,113 5,871 1,269 972 136 8,343 7,383 1 36 7,346 742 171 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ COMMERCIAL BANKS A-21 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total', I Loans 1,2 Total',: Loana',: G U o . v S t . . Other: G U o .S vt . . Other: 1958—Dec. 31..................................................................... 181.2 95.6 65.1 20.5 184.4 97.5 66.4 20 6 1959—bee. 31...................................................................... 185.9 107,5 57.9 20.5 189.5 116 0 58.9 20 5 I960—Dec. 31...................................................................... 194.5 113.8 59^8 20.8 198.5 116 7 61 0 20 9 1961—Dec. 30...................................................................... 209.6 120,5 65.2 23.9 214.4 123 9 66.6 23 9 1962—Dec. 31...................................................................... 227.9 134,1 64^5 29.2 233.6 137 9 66 4 29 3 1963—Dec. 31...................................................................... 246.2 149,7 61.5 35.0 252.4 153 9 63.4 35.1 1964—bee. 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—Dec. 31...................................................................... 310.2 207.8 53.7 48.7 317.9 213.0 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...................................................................... 323.2 213.5 56.1 53.6 322.5 212 4 56.2 54 0 May 31...................................................................... 324.6 213.5 56.1 55.0 323.6 213.1 55,8 54.7 325.6 213.9 55,4 56.3 329.5 218.6 54.2 56.7 July 26...................................................................... 332.4 217.1 58.8 56.5 331.8 218,0 57.1 56.7 337.3 218.2 61.8 57.3 334.2 217,3 59.1 57.8 Sept. 27’.................................................................... 339.5 220.2 61.6 57.7 338.8 220.4 60.1 58,3 Oct. 25’.................................................................... 342.6 221.8 62.3 58,6 341.6 220.2 62.4 59.0 Nov. 29 ’................................................................... 344.3 222,3 61.8 60.2 344.0 221,5 62.9 59.6 Dec. 31’.................................................................... 344.4 224.0 60.0 60.4 353,1 229.6 62.9 60.5 1 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, see 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 $1 billion are included in “Other securities” rather than “Other loans.” 55. For a description of the semiannually adjusted series, see the July 1962 Bulletin, pp. 797-802. DEPOSITS ACCUMULATED AT COMMERCIAL BANKS FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank June 30, Dec. 31, June 30, Class of bank June 30, Dec. 31, June 30, 1966 1966 1967 1966 1966 1967 A11 commercial........................................ 1,150 1,223 1,272 All member (cont.)— Invited................................ 1,150 1,223 1,271 Other reserve city.......................... 338 370 389 National mfimhftr .............................. 678 729 764 Country........................ 532 571 591 State member........................................ 193 212 217 All nonmember........................................ 280 283 291 All member ....................................... 870 941 981 Insured .................................................. 279 282 291 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. A-20, or from “Loans” and “Time deposits, as follows: in the tables on pp. A-l 7—A-l 9; in the table at the top of this IPC" in the tables on pp. A-22—A-23. page; and in the tables on pp. A-24—A-27 (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, $268,000 on See June 1966 Bulletin, p. 808. Dec. 31, 1966, and $37,000 on June 30, 1967. Notes to tables on pp. A-18—A-20, 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 Banks 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 arc for all commercial and mutual savings banks in the “Total loans” include Federal funds sold, and beginning with June 1967 United States (including Alaska and Hawaii, beginning with 1959). For securities purchased under resale agreements, figures for which are shown definition of “commercial banks” as used in this table, and for other for commercial banks on the following two pages. banks that are included under member banks, see Note, p. 643, May 1964 3 Reciprocal balances excluded beginning with 1942. Bulletin. 4 Includes other assets and liabilities not shown separately. Comparability of figures for classes of banks is affected somewhat by 5 Figures for mutual savings banks include relatively small amounts changes in F.R, membership, deposit insurance status, and the reserve of demand deposits. Beginning with June 1961, also includes certain classifications of cities and individual banks, and by mergers, etc. accounts previously classified as other liabilities. Data for national banks for Dec. 31, 1964, have been adjusted to make « Beginning with Dec. 31, 1947, the series was revised; for description, them comparable with State bank data. see note 4, p. 587, May 1964 Bulletin. Figures are partly estimated except on call dates. ’ Regarding reclassification of New York City and Chicago as reserve For revisions in series before June 30, 1947, see July 1947 Bulletin, cities, see Aug. 1962 Bulletin, p. 993. For various changes between pp. 870-71. reserve city and country status in 1960-63, see note 6, p. 587, May 1964 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-22 COMMERCIAL BANKS □ JANUARY 1968 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To Class of lo T a o n t s a l * F er e a d l ­ Com­ o p s r u e r c c c u a h r r a r it s y i i e i n n s g g in f s in ti a tu n t c i i o a n l s Other, U.S s . e G cu o r v it e i r e n s m 6 ent State bank and and funds mer­ Agri- Real to and Other call date invest­ sold, Total cial cul- es­ in­ Other local securments etc.2 3,4 and tur- To tate di­ 5 govt, rities3 in­ al 3 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 uals3 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 ........... 38,057 18,1671,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 19«4—Dec. 31.. 277,376 175,58960,2177,505 5,5422,843 3,491 10,91343,67539,8095,15262,991 13,377 19,03930,57433,533 5,263 1965—Dec. 31.. 306,060 2,103 199,55571,4378,2125,2583,231 2,158 13,291 49,30045,4685,21559,547 n.a. n.a. n.a. 38,655 6,201 1966—Dec. 31.. 323,885 2,544 216,40580,5988,5555,821 3,203 2,18913,30253,95047,9435,183 56,163 n.a. n.a. n.a. 41,0037,769 1967—June 30.. 336,129 3,944221,28084,5399,3334,5983,326 1,78412,23455,27549,5305,06554,233 n.a. n.a. n.a.46,8739,799 All insured: 1941—Dec. 31.. 49,290 ........... 21,259 9,2141,450 614 662 40 ........... 4,773 4,3 05 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,912 21,526 16,04551,342 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,0121,610 8231,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1964—Dec. 31.. 275,053 174,23459,7467,4825,3552,794 3,419 10,81243,43639,6275,11262,49913,275 18,93930,28533,2945,026 1965—Dec. 31.. 303,593 2,064 198,04570,887 8,191 5,088 3,172 2,093 13,14849,026 45,2905,15559,120 13,13413,23333,85838,4195,945 1966—Dec. 31.. 321,473 2,461 214,91880,060 8,536 5,643 3,148 2,131 13,14853,686 47,7705,127 55,788 12,08013,43931,53640,7617,545 1967—June 30.. 333,742 3,874219,83384,0139,3134,3833,273 1,701 12,11455,05649,3595,01753,871 8,563 14,65331,91846,6069,558 Member, total: 1941—Dec. 31.. 43,521 ........... 18,021 8,671 972 594 598 39 ........... 3,494 3,653 19,539 971 3,00715,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,1333,378 47 3,455 1,9001,057 78,338 19,260 14,271 44,807 3,254 2,815 1947—Dec. 31.. 97,846 32,628 16,9621,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1964—Dec. 31.. 228,497 147,69053,7174,643 5,1422,411 3,25010,17934,58732,0244,82448,717 9,932 15,23823,54828,3743,715 1965—Dec. 31.. 251,577 1,861 167,93963,9795,099 4,9152,714 2,008 12,475 38,98836,4184,83244,992 9,441 10,10626,36732,5884,198 1966—Dec. 31.. 264,627 2,119 181,62472,5535,318 5,3892,660 2,047 12,34942,38437,9254,75741,924 8,567 9,78924,60933,800 5,160 1967—June 30.. 274,247 3,377184,41875,921 5,7374,1752,743 1,62011,35443,13038,9124,63040,636 5,769 10,971 24,85539,0856,731 New York City: 1941—Dec. 31.. 12,896 ...........4,072 2,807 8 412 169 32 ........... 123 5: 2 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,4531,172 26 80 287 272 17,574 3,910 3,32510,339 606 629 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 30 2,742 623 1,179 2,615 2,546 2,6541,371 6,178 1,958 1,972 2,248 5,579 449 1965—Dec. 31.. 44,763 '"412 32,713 18,075 20 2,866 665 1,010 3,471 3,139 2,9281,340 5,203 1,538 987 2,876 5,879 556 1966—Dec. 31.. 46,536 109 35,83221,214 173,109 598 1,025 3,265 3,465 2,7991,209 4,920 1,871 942 2,286 4,967 708 1967—June 30.. 47,701 423 36,01822,352 142,579 644 791 3,084 3,364 2,889 1,169 5,048 1,216 1,753 2,274 5,485 728 City of Chicago: 1941—Dec. 31.. 2,760 ........... 954 732 6 48 52 1 ........... 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 ...........1,801 1,418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 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—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 1967—June 30.. 12,133 192 8,732 5,562 41 309 205 174 1 ,019 671 741 281 1,576 308 385 951 1,434 199 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 b!08 6,467 295 751 5,421 956 820 1945—Dec. 31,. 40,108 8,514 3,661 205 4271,503 17 1,459 855 38729,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 ...... 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1964—Dec. 31.. 84,670 57,55521,1021,095 1,060 986 1,134 4,887 13,611 12,8021,977 16,326 3,200 5,662 7,463 9,871 918 1965—Dec. 31.. 91,997 ’"471 64,64624,7841,206 954 1,108 635 5,820 15,056 14,305 1,999 14,354 2,972 3,281 8,432 11,504 1,022 1966—Dec. 31.. 96,201 817 69,01728,0901,251 1,0841,079 684 5,748 16,04414,375 1,968 13,040 2,552 2,673 8,222 12,033 1,294 1967—June 30.. 99,850 1 ,168 68,98728,887 1,360 695 1,064 539 5,323 16,098 14,5481,798 12,455 1,539 2,918 8,360 15,2402,000 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 35926,999 5,732 4,54416,722 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 2,0061,262 1964—Dec. 31.. 93,759 55,733 14,5563,493 830 599 710 1,73017,96415,8991,04724,341 4,209 7,20612,925 11,531 2,154 1965—Dec. 31.. 103,362 905 62,433 16,4783,840 650 698 174 1,983 20,217 18,423 1,17723,735 4,389 5,565 14,098 13,8052,483 1966—Dec. 31.. 110,089 1,161 68,051 17,9383,986 790 761 157 2,175 22,25320,000 1,30722,419 3,791 5,917 13,096 15,4732,985 1967—June 30.. 114,563 1,594 70,681 19,1204,323 591 830 116 1,92822,99620,735 1,38321,557 2,706 5,915 13,27016,9263,804 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. 6,0672,003 1966—Dec. 31.. 59,257 425 34,781 8,045 3,237 431 543 142 953 11,566 10,018 427 14,239 n.a. n.a. n.a. 7,2032,609 1967—June 30.. 61,882 567 36,862 8,6183,596 423 583 164 879 12,145 10,618 435 13,597 n.a. n.a. n.a. 7,7873,068 1 Beginning with June 30, 1948, figures for various Ioan items are available before 1947; summary figures for earlier dates appear in the shown gross (i.e., before deduction of valuation reserves); they do not preceding table. add to the total and are not entirely comparable with prior figures. Total 3 Beginning with June 30. 1966. loans to farmers directly guaranteed loans continue to be shown net. by CCC were reclassified as “Other securities,” and Export-Import Bank 2 Includes securities purchased under resale agreements prior to June portfolio fund participations were reclassified from loans to “Other se­ 30, 1967—they were in loans, for the most part in loans to banks. Prior curities.” This increased “Other securities” by about $1 billion. to Dec. 1965, Federal funds sold were included with total loans and loans <> Beginning with Dec. 31, 1965, components shown at par rather than to banks. at book value; they do not add to the total (shown at book value) and are 3 See table (and notes) entitled Deposits Accumulated at Commercial not entirely comparable with prior figures. Banks for Payment of Personal Loans, p. A-21. For other notes see opposite page. •* Breakdowns of loan investment and deposit classifications arc not Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ COMMERCIAL BANKS A-23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal­ De­ b c C a a l n l a l k s d s a a o n te f d B s F w e R a r . i n R v e th k e ­ . s s r C c a e o n n u i d c r n y ­ b m a a w d n e n i o s c t k t e h ­ i s s c ’ j m p u a s o d a t d s e e n i ­ ­ d t d s 8 m D e I s n o t t ­ i e c r ’ ba e F n ig k o n r­ ’ G U o .S v . t . S g l a o o t n c a v a d t t e l . c C c h o a f e e i e f n r e r f c s d d i t * k ­ i ­ s, IPC I b n a t n er k ­ G P S U a o o a n . s S v v d t t ­ a . , l S g l a o o t n c a v a d t t e l . IPC 3 B r in o o w g r s ­ ­ c C o a t a u a c p n l ­ i t ­ s etc. ings Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 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 9,812116,6352,67927,795 1965—Dec. 31.... 17.992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 1,008 263 12,186134,2474,47230,272 1966—Dec. 31.... 19,069 5,450 15,870142,104 17,867 1,904 4,992 15,047 7,051 145,653 967 23813,462146,3294,85932,054 1967—June 30.... 18,999 4,854 14,524137,267 16,338 1,691 5,152 15,207 7,527 138,314 1,468 267 15,669159,1705,16633,285 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 1,24823,740 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 9,766116,1472,58027,377 1965—Dec. 31.... 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,32529,827 1966—Dec. 31.... 19,069 5,426 15,348140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414145,7444,71731,609 1967—June 30.... 18,999 4,839 14,094136,024 16,185 1,593 5,135 15,108 7,420 137,463 1,399 267 15,614158,5605,05032,843 Member, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1964—Dec. 31.... 17,581 3,490 9,057108,324 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 8,957112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 23610,041 109,9254,23424,926 1966—Dec. 31.... 19,069 4,249 9,400112,920 17,051 1,736 4,432 11,406 6,396 120,417 794 213 10,983 118,5764,618 26,278 1967—June 30.... 18,999 3,728 8,686109,132 15,610 1,557 4,580 11,566 6,857 114,123 1,314 23912,747128,9364,92027,237 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 Hl 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 13,5341,224 4,471 1965—Dec. 31.... 3,788 310 122 18,190 4,191 1,034 1,271 620 2,937 20,708 522 84 807 17,0971,987 5,114 1966—Dec. 31.... 4,062 326 201 18,013 5,105 1,265 1,016 608 3,814 22,113 467 83 918 16,4471,874 5,298 1967—June 30.... 4,397 279 188 17,459 5,072 1,111 1,021 796 4,086 20,774 817 85 1,129 17,7721,841 5,604 City of Chicano: 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—Dec. 31.... 815 92 136 4,502 1,362 71 310 286 146 5,575 25 1 356 4,541 484 1,199 1967—June 30.... 954 80 153 4,370 1,209 62 299 307 169 5,061 20 1 470 5,215 359 1,224 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 I 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 40,5101,548 9,007 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 44,2041,952 9,472 1967—June 30.... 8,084 1,131 2,165 36,147 7,325 342 1,880 3,399 1,380 41,617 370 78 6,094 48,1302,109 9,755 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—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 1967—June 30.... 5,565 2,237 6,180 51,156 2,005 42 1,380 7,064 1,222 46,670 106 75 5,054 57,819 611 10,655 Nonmember:3 1947—Dec. 31.... .........5..4..4 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—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 1967—June 30.... 1,126 5,838 28,135 728 134 571 3,641 670 24,191 154 28 2,921 30,234 246 6,048 ? Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 8 Through 1960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and ® For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 1964, have been adjusted to make them comparable with State bank data. Note.—Data are for all commercial banks in the United States. (For For other notes see opposite page. definition of “commercial banks” as used in this table and for other banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-24 WEEKLY REPORTING BANKS □ JANUARY 1968 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans^ For purchasing or carrying securities To financial institutions Loansi Total Wednesday m in lo a e v n a n e n d t s s s t ­ 1 v s n e t a e r i r l o t e v u ­ n o e a s f ­ i C n m a c d o n i e a u m d r l s ­ ­ ­ A t c u g u r r l a ­ i l ­ U a T n . o S d . b d r e o a k l e e r r s s U T .S o . others Bank D s o­ Pe N rs o , n bank e R st e a a t l e s i m C n u s m o e t n n a e l t ­ r ­ g e F o i o g v n r ts ­ . o A th l e l r V se t a r i r o l e v u ­ n e a s ­ trial G c s u o e r v ­ i t ­ , O c s u t e h r ­ e i­ r G c s u o e r v ­ i t ­ , O c s u t e h r ­ e i­ r F ei o g r n ­ m co ti e m c s ­ ­ f s i a a n n l a e d n s . Other ties ties ties ties mer­ cos., cial etc. Large banks— Total 1966 Dec. 7.......... 184,379 134,543 60,053 1,774 556 2,644 92 2,112 1,561 3,213 5,731 4,298 27,518 16,005 1,180 10,571 2.765 14........... 186,537 135,901 60,398 1,790 846 2,784 72 2,097 1,532 3,441 6,030 4,305 27,531 15,970 1,179 10,681 2,755 21........... 188,770 137,419 61,143 1,797 734 3,066 74 2,113 1,554 3,270 6,730 4,339 27,493 15,918 1,167 10,765 2,744 28........... 189,695 138,193 60,779 1,809 1,142 3,359 75 2,115 1 ,579 3,432 6,903 4,325 27,492 15,959 1,178 10,772 2,726 1967 Nov. 1........... 204,586 142,909 63,401 1,902 1,365 3,841 78 2,507 1 ,337 3,692 6,017 4,411 28,531 16,196 1,118 11,485 2,972 8........... 202,617 141,432 63,527 1 ,903 1,035 3,524 77 2,494 1 ,359 3,301 5,488 4,413 28,576 16,174 1,116 11,414 2,969 15........... 204,426142,413 63,857 1,906 1,195 3,550 81 2,479 1,400 3,471 5,526 4,424 28,692 16,179 1,123 11,497 2,967 22........... 203,372142,157 63,885 1,901 918 3,437 78 2,466 1,379 3,864 5,274 4,424 28,731 16,173 1,098 11,494 2,965 29........... 203,199 141,714 63,733 1,899 899 3,397 79 2,442 1,388 3,501 5,355 4,418 28,754 16,185 1,105 11 ,519 2,960 Dec. 6........... 204,679 143,181 64,108 1,906 957 3,567 81 2.460 1,400 4,243 5,347 4,439 28,738 16,189 1,115 11,593 2,962 13........... 205,331 143,751 64,119 1,918 949 3,711 83 2,451 1,401 4,160 5,682 4,429 28,815 16,227 1,120 11,645 2,959 20........... 208,644 146,878 65,536 1,929 944 4,284 90 2,458 1,421 4,309 6,186 4,473 28,892 16,244 1,096 11,963 2,947 27........... 209,147 147,403 65,818 1,934 775 4,307 90 2,464 1,434 4,324 6,448 4,479 28,900 16,274 1,090 12,006 2,940 New York City 1966 Dec. 7........... 42,606 33,142 20,276 16 216 1,340 29 587 847 876 1,682 1,040 3,257 1,242 790 1 ,710 766 14........... 43,439 33,823 20,363 16 352 1,420 11 581 819 1,193 1,798 1,034 3,258 1,238 787 1 ,718 765 21........... 44,332 34,482 20,569 (6 337 1,705 ll 579 831 1,031 2,145 1,059 3,206 1,236 777 1,742 762 28........... 44,704 34,661 20,353 16 643 2,006 11 579 846 723 2,185 1,058 3,199 1,237 789 1 ,770 754 1967 Nov. J........... 47,485 35,450 21,169 13 629 2,342 13 854 648 805 1,842 1,032 3,025 1,241 761 1,911 835 8.......... 46,619 34,872 21,242 13 385 2,052 13 835 671 1,038 1,516 1,029 3,033 1,240 753 1,886 834 15........... 47,178 35,312 21,312 13 502 2,069 15 827 691 1 ,126 1,590 1,046 3,055 1,248 758 1,895 835 22........... 46,683 35,087 21,208 12 360 1,958 15 818 664 1,452 1,448 1,056 3,056 1,249 743 1,882 834 29........... 47,050 35,075 21,205 12 377 1,936 14 796 670 1,357 1,572 1,056 3,036 1,252 736 1,890 834 Dec. 6........... 47,635 33,525 21,343 13 290 2,051 16 799 646 1,656 1 ,513 1,067 3,038 1,256 745 1 ,925 833 13........... 48,122 36,133 21,265 12 465 2,229 18 788 668 1,810 1,681 1,065 3,030 1,259 755 1 ,921 833 20........... 49,220 37,068 21,972 12 448 2,660 18 795 689 1,389 1,745 1,051 3,053 1,263 761 2,043 831 27........... 49,136 37,156 22,102 13 421 2,717 18 802 698 1,259 1 ,817 1,055 3,040 1,267 748 2,023 824 Outside New York City 1966 Dec. 7........... 141,773 101,401 39,777 1 ,758 340 1 ,304 63 1,525 714 2,337 4,049 3,258 24,261 14,763 390 8,861 I ,999 14........... 143,098 102,078 40,035 1,774 494 1 ,364 61 1 ,516 713 2,248 4,232 3,271 24,273 14,732 392 8,963 1 ,990 21 ........... 144,438 102,937 40,574 1 ,781 397 1 ,361 63 1 ,534 723 2,239 4,585 3,280 24,287 14,682 390 9,023 1 ,982 28........... 144,991 103,532 40,426 J ,793 499 1 ,353 64 1,536 733 2,709 4,718 3,267 24,293 14,722 389 9,002 1 ,972 1967 Nov. J...... 157,101 107,459 42,232 1,889 736 1,499 65 1 ,653 689 2,887 4,175 3,379 25,506 14,955 357 9,574 2,137 8........... 155,998 106,560 42,285 1,890 650 1,472 64 1 ,659 688 2,263 3,972 3,384 25,543 14,934 363 9,528 2,135 15........... 157,248 107,101 42,545 1,893 693 1 ,481 66 1 ,652 709 2,345 3,936 3,378 25,637 14,931 365 9,602 2,132 22........... 156,689107,070 42,677 1,889 558 1,479 63 1,648 715 2,412 3,826 3,368 25,675 14,924 355 9,612 2,131 29........... 156,149 106,639 42,528 1,887 522 1 ,461 65 1,646 718 2,144 3,783 3,362 25,718 14,933 369 9,629 2,126 Dec, 6........... 157,044107,656 42,765 1,893 667 1,516 65 1,661 754 2,587 3,834 3,372 25,700 14,933 370 9,668 2,129 13........... 157,209 107,618 42,854 1,906 484 1 ,482 65 1 ,663 733 2,350 4,001 3,364 25,785 14,968 365 9,724 2,126 20........... 159,424109,810 43,564 1,917 496 1,624 72 1,663 732 2,920 4,441 3,422 25,839 14,981 335 9,920 2,116 27........... 160,011 110,247 43,716 1,921 354 1 ,590 72 1,662 736 3,065 4,631 3,424 25,860 15,007 342 9,983 2,116 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ WEEKLY REPORTING BANKS A-25 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with— Obligations Cer­ No m te a s t a u n r d in g b - onds o p s f o u a l S b n it t d d i a i c t v a e . s l O co t s h r e e p c r a u , n r b s d i t o t o i n e c s d k s s , Total p C i r t o o e i a n f m c s e h s s s r C a e n n u d c r y ­ se F w R r . i v R t e e h ­ . s a o s A t s h e l e l t r s Wednesday Total Bills tifi­ collec­ Do­ For­ coin Banks cates tion mestic eign With. 1 to After w T a a r x ­ All Ce o r f t if. O se t c h u e ­ r banks banks 1 yr. 5 yrs. 5 yrs. rants 3 other p p a a r ti t o ic n i * ­ rities Large banks— Total 1966 23,276 3,386 264 3,244 10,360 6,022 2,263 21,174 911 2,212 39,069 18,221 3,969 231 2,65613,992 7,844 Dec. 7 24,063 4,074 266 3,295 10,369 6,059 2,255 21,157 930 2,231 42,032 20^897 3,994 240 2,89214,009 7,885 14 24,543 4,474 308 3,386 10,314 6,061 2,358 21,221 938 2,291 42,614 20,214 4,258 231 2,82915,082 7,854 21 24,803 4,678 309 3,400 10,313 6,103 2,308 21,133 927 2,331 45,033 21,925 4,466 248 3,038 15,356 7,858 28 1967 28,915 7,073 3,452 13,744 4,646 4,037 24,652 1,475 2,598 46,474 23,451 4,156 301 2,64915,917 8,762 ..........Nov. 1 28,488 6,608 3,522 13/708 4,650 3,855 24,778 1,502 2,562 45,794 23,339 4,006 251 2,667 15,531 8,718 ..8 29,053 6,252 3,716 14,059 5,026 3,977 24,886 1,560 2,537 46,573 24,430 4,147 236 2,711 15,049 8,632 .15 28,212 5,738 3,721 13,876 4,877 3,862 25,019 1,592 2,530 45,151 22,375 4,033 220 2,64315,880 8,687 22 28,400 5,964 3,680 13,869 4,887 3,945 25,023 1,554 2,563 43,093 20,630 3,902 231 3,02015,310 8,700 ................. 29 28,206 5,809 3,817 13,700 4,880 4,044 25,103 1,553 2,592 45,934 23,485 4,355 228 2,795 15,071 8,989 .........Dec. 6 27,991 5,580 3,863 13,728 4,820 4,168 25,247 1,552 2,622 47,019 23,695 4,245 229 3,07615,774 9,144 13 28,173 5,819 4,026 13,818 4,510 4,083 25,332 1 ,557 2,621 47,527 23,777 4,326 218 2,99016,216 9,150 20 28,250 5,906 4,036 13,831 4,477 4,085 25,285 1,509 2,615 50,983 26,304 4,441 250 3,289 16,699 9,049 27 New York City 1966 4,216 1,221 23 434 1,242 1,296 491 3,958 223 576 10,938 6,485 171 99 369 3,814 2,812 Dec. 7 4,311 1,318 23 441 1,235 1,294 569 3,909 234 593 12,526 7,973 194 111 394 3,854 2,856 14 4,414 1,346 61 502 1,207 1,298 598 3,987 219 632 11,794 7,145 187 100 362 4,000 2,835 21 4,660 1,556 62 501 1,230 1,311 579 3,945 217 642 13,892 8,392 252 112 383 4,753 2,793 28 1967 6,056 2,354 921 1,888 893 1,170 4,107 58 644 14,688 9,453 263 131 342 4,499 3,202 ..........Nov. 1 5,896 2,155 995 1,859 887 1,049 4,125 59 618 15,005 10,395 262 92 361 3,895 3,148 8 5,890 1 ,938 907 2,076 969 1,162 4,151 60 603 14,075 9,384 279 110 355 3,947 3,191 15 5,524 1,735 879 1,977 933 1,244 4,185 60 583 13,129 8,092 206 106 341 4,384 3,319 22 5,797 2,046 785 2,041 925 1,326 4,200 58 594 12,809 7,878 260 109 388 4,174 3,240 29 5,742 2,013 807 1,974 948 1,410 4,291 60 607 14,078 9,564 321 94 401 3,698 3,363 ..........Dec. 6 5,505 1,752 816 1,994 943 1,493 4,291 71 629 13,857 9,201 227 102 430 3,897 3,493 13 5,634 1,890 848 2,007 889 1,482 4,350 65 621 14,206 8,929 301 87 402 4,487 3,562 20 5,510 1,789 808 2,024 889 1,470 4,313 65 622 16,194 10,736 307 107 437 4,607 3,377 27 Outside New York City 1966 19,060 2,165 241 2,810 9,118 4,726 1,772 17,216 688 1,636 28,131 11,736 3,798 132 2,287 10,178 5,032 ........Dec, 7 19,752 2,756 243 2,854 9,134 4,765 1,686 17,248 696 1,638 29,506 12,924 3,800 129 2,49810,155 5,029 14 20,129 3,128 247 2,884 9,107 4,763 1,760 17,234 719 1,659 30,820 13,069 4,071 131 2,467 11,082 5,019 21 20,143 3,122 247 2,899 9,083 4,792 1,729 17,188 710 1 ,689 31,141 13,533 4,214 136 2,655 10,603 5,065 28 1967 22,859 4,719 2,531 11,856 3,753 2,867 20,545 1,417 1,954 31,786 13,998 3,893 170 2,307 11,418 5,560 ........Nov. 1 22,592 4,453 2,527 11,849 3,763 2,806 20,653 1,443 1 ,944 30,789 12,944 3,744 159 2,30611,636 5,570 8 23,163 4,314 2,809 11,983 4,057 2,815 20,735 1,500 1,934 32,498 15,046 3,868 126 2,35611,102 5,441 15 22,688 4,003 2,842 11,899 3,944 2,618 20,834 1,532 1,947 32,022 14,283 3,827 114 2,302 11,496 5,368 22 22,603 3,918 .....2..,.8..9.5 11,828 3,962 2,619 20,823 1,496 1,969 30,284 12,752 3,642 122 2,632 11,136 5,460 29 22,464 3,796 3,010 11,726 3,932 2,634 20,812 1,493 1,985 31,856 13,921 4,034 134 2,394 11,373 5,626 ........Dec. 6 22,486 3,828 3,047 11,734 3,877 2,675 20,956 1,481 1,993 33,162 14,494 4,018 127 2,646 11,877 5,651 13 22,539 3,929 3,178 11,811 3,621 2,601 20,982 1,492 2,000 33,321 14,848 4,025 131 2,588 11,729 5,588 20 22,740 4,117 3,228 11,807 3,588 2,615 20,972 1,444 1,993 34,789 15,568 4,134 143 2,852 12,092 5,672 ...................27 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-26 WEEKLY REPORTING BANKS □ JANUARY 1968 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 Totals IPC p d s i u o 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 7 S in a g v s ­ Other p d s i o u c iv a l b i i l t ­ ­ ­ i b m n t a t i e n c 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 Dec. 7..................... 193,431 104,814 77,317 5,772 1,736 13,001 705 1,382 88,617 47,048 28,904 7,697 497 4,103 208 14..................... 198,499109,739 82,052 5,905 1,003 12,934 675 1,399 88,760 46,986 28,774 7,961 500 4,180 205 21.................. 201,574112,537 82,455 5,918 3,520 13,383 687 1,471 89,037 46,999 28,792 8,141 529 4,213 203 28..................... 204,404114,765 83,108 6,137 3,882 13,838 738 1,557 89,639 47,213 29,002 8,299 526 4,234 209 1967 Nov. 1..................... 220,814118,625 84,808 6,683 4,031 13,960 738 1,639102,189 48,438 37,949 9,372 843 5,141 256 8..................... 217,820115,451 82,030 5,957 3,333 14,666 726 1,577102,369 48,501 38,096 9,345 826 5,154 258 15..................... 220,301 117,981 85,383 6,088 3,516 14,204 691 1,536102,320 48,489 38,171 9,270 813 5,136 251 22..................... 216,650 113,861 83,658 5,607 3,649 13,455 633 1,541 102,789 48,527 38,530 9,302 852 5,128 263 29..................... 216,390 113,421 83,521 5,607 3,368 12,774 786 1,557 102,969 48,533 38,788 9,297 852 5,045 268 Dec, 6..................... 218,856115,829 83,800 5,872 2,091 14,646 711 1,555 103,027 48,505 38,847 9,326 843 5,065 261 13...................... 220,604117,393 87,331 5,793 1,494 13,915 700 1,574103,211 48,442 38,905 9,504 861 5,059 261 20..................... 224,628122,123 88,304 5,833 5,559 14,053 698 1,683 102,505 48,437 38,264 9,497 858 4,980 288 27...................... 228,371 125,562 90,370 5,994 4,965 14,841 808 1,793 102,809 48,647 38,324 9,596 812 4,965 283 New York City 1966 Dec. 7................4..3..,.0.98 26,625 17,839 307 329 3,618 564 956 16,473 4,596 7,659 791 321 2,933 96 14...................... 45,308 28,879 19,565 297 104 3,607 543 975 16,429 4,589 7,565 802 324 2,984 94 21...................... 46,142 29,756 19,539 451 1,133 3,850 550 1,029 16,386 4,585 7,516 791 343 2,989 93 28...................... 47,587 31,086 19,880 344 1,220 4,325 603 1,084 16,501 4,613 7,619 774 336 2,994 94 1967 Nov. 1..................... 51,597 32,549 20,209 821 1,217 4,260 576 1,123 19,048 4,728 9,074 1,008 589 3,437 141 8..................... 50,859 31,709 19,118 430 894 4,636 575 1,087 19,150 4,744 9,143 1,026 584 3,442 140 15..................... 50,487 31,294 19,879 650 904 4,086 544 1,049 19,193 4,747 9,230 1 ,006 571 3,431 136 22..................... 48,774 29,414 19,438 345 804 4,044 485 1,062 19,360 4,751 9,380 992 601 3,426 150 29..................... 49,456 30,000 19,665 333 815 3,846 609 1,050 19,456 4,745 9,560 973 598 3,356 154 Dec. 6...................... 50,719 31,313 19,499 372 418 4,440 568 1,057 19,406 4,744 9,572 934 591 3,350 150 13...................... 51,031 31,577 20,510 377 264 4,283 553 1,093 19,454 4,740 9,621 927 602 3,350 149 20..................... 52,530 33,489 21,347 513 1,947 4,138 541 1,183 19,041 4,740 9,316 882 596 3,265 176 27..................... 54,439 35,344 21,911 434 1,602 4,869 638 1,269 19,095 4,753 9,462 842 562 3,234 175 Outside New York City 1966 Dec. 7..................... 150,333 78,189 59,478 5,465 1,407 9,383 141 426 72,144 42,452 21,245 6,906 176 1,170 112 14..................... 153,191 80,860 62,487 5,608 899 9,327 132 424 72,331 42,397 21,209 7,159 176 1,196 111 21..................... 155,432 82,781 62,916 5,467 2,387 9,533 137 442 72,651 42,414 21,276 7,350 186 1,224 110 28..................... 156,817 83,679 63,228 5,793 2,662 9,513 135 473 73,138 42,600 21,383 7,525 190 1,240 115 1967 Nov. 1..................... 169,217 86,076 64,599 5,862 2,814 9,700 162 516 83,141 43,710 28,875 8,364 254 1,704 115 8..................... 166,961 83,742 62,912 5,527 2,439 10,030 151 490 83,219 43,757 28,953 8,319 242 1,712 118 15 169,814 86,687 65.504 5,438 2,612 10,118 147 487 83,127 43,742 28,941 8,264 242 1,705 115 22 167,876 84,447 64,220 5,262 2,845 9,411 148 479 83,429 43,776 29,150 8,310 251 1,702 113 29..................... 166,934 83,421 63,856 5,274 2,553 8,928 177 507 83,513 43,788 29,228 8,324 254 1,689 114 Dec, 6..................... 168,137 84,516 64,301 5,500 1,673 10,206 143 498 83,621 43,761 29,275 8,392 252 1,715 111 13...................... 169,573 85,816 66,821 5,416 1,230 9,632 147 481 83,757 43,702 29,284 8,577 259 1 ,709 112 20..................... 172,098 88,634 66,957 5,320 3,612 9,915 157 500 83,464 43,697 28,948 8,615 262 1,715 112 27...................... 173,932 90,218 68,459 5,560 3,363 9,972 170 524 83,714 43,894 28,862 8,754 250 1 ,731 108 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ WEEKLY REPORTING BANKS A-27 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 i d a t i l e s Total T lo o a t n a s l Demand La o r f g e d e c p er o t s i i f t i c to ates Wednesday F F r . o R m . o F t r h o e m rs a c c a c p ou it 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 us o t s e i d ts ® Banks adjusted B and in­ vestments 8 i T ss o u t e a d l to Is s I u P e C d ’ s to I o ss t u h e e d rs Large banks— Total 1966 218 6,700 11,737 19,206 231,292 131,330 181,166 71,856 15,520 10,465 5,055 245 6,739 11,803 19,168 236,454 132,460 183,096 74,905 15,433 10,279 5,154 ...............................14 218 6,602 11,696 19,148 239,238 134,149 185,500 75,420 15,462 10,176 5,286 21 891 6,771 11,358 19,162 242,586 134,761 186,263 75,120 15,668 10,350 5,318 ...............................28 1967 114 6,275 12,298 20,321 259,822 139,220 200,897 77,183 20,233 13,059 7,174 134 6,455 12,384 20,336 257,129 138,131 199,316 74,113 20,435 13,224 7,211 .............................. 8 107 6,156 12,781 20,286 259,631 138,942 200,955 75,831 20,646 13,475 7,171 ...............................15 57 7,062 13,181 20,260 257,210 138,293 199,508 74,382 20,931 13,772 7,159 ...............................22 75 6,094 12,135 20,298 254,992 138,204 199,689 76,649 21,131 13,946 7,185 ...............................29 91 7,461 12,786 20,408 259,602 138,938 200,436 75,607 21,097 13,966 7,131 109 7,270 13,109 20,402 261,494 139,587 201,167 78,289 21,115 13,984 7,131 ...............................13 356 7,018 12,986 20,333 265,321 142,569 204,335 78,734 20,384 13,266 7,118 ...............................20 262 7,453 12,753 20,340 269,179 143,079 204,823 79,452 20,330 13,285 7,045 ...............................27 New York City 1966 2,637 5,457 5,164 56,356 32,266 41,730 16,193 5,417 3,822 1,595 2,724 5,627 5,162 58,821 32,630 42,246 17,195 5,361 3,717 1,644 ...............................14 2,232 5,447 5,140 58,961 33,451 43,301 17,628 5,263 3,608 1,655 ...............................21 430 2,960 5,265 5,147 61,389 33,938 43,981 17,149 5,363 3,720 1,643 ...............................28 1967 35 1,905 6,299 5,539 65,375 34,645 46,680 17,619 7,173 4,728 2,445 ..........Nov. 1 23 1,860 6,489 5,541 64,772 33,834 45,581 15,784 7,240 4,805 2,435 .............................. 8 1,615 6,803 5,539 64,444 34,186 46,052 16,920 7,250 4,859 2,391 ...............................15 54 1,726 7,057 5,520 63,131 33,635 45,231 16,474 7,393 5,004 2,389 22 1,801 6,319 5,523 63,099 33,718 45,693 17,461 7,507 5,130 2,377 ...............................29 2,154 6,664 5,539 65,076 33,869 43,979 16,891 7,460 5,138 2,322 14 1,972 6,915 5,540 65,472 34,323 46,312 17,829 7,455 5,163 2,292 ...............................13 260 1,970 6,715 5,513 66,988 35,679 47,831 18,475 7,050 4,775 2,275 ...............................20 2,214 6,541 5,513 68,707 35,897 47,877 18,137 7,121 4,929 2,192 ...............................27 Outside New York City 1966 218 4,063 6,280 14,042 174,936 99,064 139,436 55,663 10,103 6,643 3,460 245 4,015 6,176 14,006 177,633 99,830 140,850 57,710 10,072 6,562 3,510 ...............................14 218 4,370 6,249 14,008 180,277 100,698 142,199 57,792 10,199 6,568 3,631 ...............................21 461 3,811 6,093 14,015 181,197 100,823 142,282 57,971 10,305 6,630 3,675 ...............................28 1967 79 4,370 5,999 14,782 194,447 104,575 154,217 59,564 13,060 8,331 4,729 111 4,595 5,895 14,795 192,357 104,297 153,735 58,329 13,195 8,419 4,776 .............................. 8 107 4,541 5,978 14,747 195,187 104,756 154,903 38,911 13,396 8,616 4,780 ................................15 3 5,336 6,124 14,740 194,079 104,658 154,277 57,908 13,538 8,768 4,770 22 75 4,293 5,816 14,775 191,893 104,486 153,996 59,188 13,624 8,816 4,808 ...............................29 91 5,307 6,122 14,869 194,526 105,069 154,457 58,716 13,637 8,828 4,809 95 5,298 6,194 14,862 196,022 105,264 154,855 60,460 13,660 8,821 4,839 ...............................13 96 5,048 6,271 14,820 198,333 106,890 156,504 60,259 13,334 8,491 4,843 ...............................20 262 5,239 6,212 14,827 200,472 107,182 156,946 61,315 13,209 8,356 4,853 ...............................27 i After deduction of valuation reserves. 2 Individual items shown gross. t o Certificates of deposit issued in denominations of $100,000 or more. 3 Includes short-term notes and bills (less than 1 year to maturity) issued by States and political subdivisions. * Federal agencies only. Note.—Beginning June 29, 1966, coverage of series was changed from s Includes certified and officers’ checks, not shown separately. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ 6 Deposits of foreign governments and official institutions, central cial Banks (earlier figures for 1966 are comparable with the new series). banks, and international institutions. Also beginning June 29, 1966, detailed breakdown is shown of “AU other 7 Includes U.S. Government and postal savings not shown separately. loans,” of “Other securities,” and of ownership of time certificates of a Exclusive of loans to domestic commercial banks. deposit in denominations of $100,000 or more. For description of revisions, s All demand deposits except U.S. Government and domestic com­ see Aug. 1966 Bulletin, pp. 1137-40. mercial banks, less cash items in process of collection. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-28 BUSINESS LOANS OF BANKS □ JANUARY 1968 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1967 1967 1967 1967 D 2 e 7 c. D 2 e 0 c. D 1 e 3 c. D 6 ec. N 2 o 9 v. Dec. Nov. Oct. IV III n h 2n a d lf h 1 a s l t f Durable goods manufacturing: Primary metals................................ 1,376 1,365 1,324 1,320 1,215 161 23 184 '103 153 287 253 Machinery......................................... 4,290 4,398 4,311 4.331 4,346 -56 -5 -187 -248 -382 285 -630 887 Transportation equipment................ 1,812 1,810 1,747 1,787 1,854 -42 -47 -24 -113 -23 -273 -136 -47 Other fabricated metal products.,. 1,696 1,694 1,675 1,678 1,682 14 -56 -61 -103 -178 266 -281 409 Other durable goods.......................... 1,996 2,022 2,001 1,991 1,991 5 -58 -99 -152 10 118 -142 175 Nondurable goods manufacturing: Food, liquor, and tobacco........... 2,758 2,773 2,595 2,558 2,531 227 219 141 587 28 -105 615 -577 Textiles, apparel, and leather........... 1,749 1,804 1,816 1,851 1,876 -127 -123 -135 -385 -25 86 -410 297 Petroleum refining.............................. 1,554 1,513 1,508 1,517 1,501 S3 23 15 91 -204 180 -113 241 Chemicals and rubber........................ 2,341 2,294 2,285 2,265 2,276 65 -54 18 29 -112 1 -83 309 Other nondurable goods................... 1,728 1,729 1,697 1,683 1,662 66 -54 -47 -35 130 108 95 161 Mining, including crude petroleum and natural gas................................ 4,184 4,018 3,726 3,720 3,718 466 -21 -61 384 -220 1 164 195 Trade: Commodity dealers.................. 1,605 1,622 1,567 1,589 1,525 80 296 125 501 178 -334 679 -479 Other wholesale........................ 3,057 3,046 3,025 3,002 2,987 70 -2 94 162 -66 51 96 68 Retail........................................... 3,526 3,596 3,562 3,593 3,580 -54 132 -89 -11 17 157 6 -27 Transportation......................................... 4,407 4,379 4.225 4,234 4,163 244 33 56 333 95 185 428 273 Communication....................................... 999 968 910 947 933 66 -32 -25 9 -5 157 4 223 Other public utilities.............................. 2,416 2,424 2,344 2,363 2,301 115 85 -90 110 148 212 258 -109 Construction............................................. 2,511 2,515 2,546 2,531 2,529 -18 -8 -32 -58 -45 117 -103 10 Services....................................................... 4,996 4,929 4,836 4,831 4,821 175 62 67 304 -83 89 221 -53 All other domestic loans....................... 6,683 6,570 6,457 6,430 6,378 305 *9 -90 224 132 273 356 558 Bankers’ acceptances.............................. 1,203 1,180 1,171 1,140 1,164 39 '112 150 301 253 -122 554 114 Foreign commercial and industrial loans................................................... 2,740 2,746 2,727 2,697 2,706 34 '19 -68 -15 -97 -113 -112 -20 Total classified loans.............................. 59,627 59,395 58,055 58,058 57,739 1,888 553 -342 2,099 -346 1,492 1,753 2,861 Total commercial and industrial loans 65,818 65,536 64,119 64,108 63,733 2,085 650 -289 2,446 -412 1,822 2,034 3,037 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 all commercial banks. BANK RATES ON SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All sizes 1,000 1-9 10-99 100-499 500-999 and over Interest rate (per cent per annum) Nov. Aug. Nov, Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 1967 Percentage distribution of dollar amount Iaw than 5.50........... 2.5 1.5 0.8 1.0 0.5 0.7 1.1 1.2 1.3 2.7 4.1 1.6 5.50.................................................... 30.9 33.0 1.2 1.3 4.7 4.8 16.0 17.0 30.0 26.6 44.8 51.7 5 51 5,75........................................... 22.3 19.4 2.4 3.0 5.7 6.3 16.9 19.2 29.7 28.6 27.0 20.7 5 76-6 00........................................... 12.5 15.4 14.2 14.9 19.3 19.1 19.7 17.7 13.7 16.3 7.3 13.0 6 Oi-6 49........................................... 10.2 10.9 25.8 25.7 23.5 24.1 15.6 15.7 7.8 9.2 5.0 4.9 6.50.................................................... 7.1 5.7 10.1 10.2 10.7 10.6 9.0 7.8 5.6 6.5 5.8 3.0 6 5W 99.......................................... 4.6 4.9 13.8 13.9 11.9 12.1 7.1 6.5 4.1 4.2 1.6 2.1 7,00 4.3 3.3 11.7 10,6 8.6 7.9 6.1 6.0 3.7 2.3 2.4 0.8 Over 7.00......................................... 5.5 5.8 20.0 19.5 15.0 14.5 8.5 8.9 4.1 3.6 2.0 2.2 Total..................................... 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: 4,037.9 3,880.7 60.5 61.6 467.9 491.6 892.4 923.2 611.2 566.6 2,006.0 1 ,837.7 Number (thousands)................. 37.8 ' 38.9 15.9 16.1 15.4 16.3 4.7 4.8 1.0 .9 0.9 ’ .8 Center Weighted average rates (per cent per annum) 35 centers...................................... 5.96 5.95 6.60 6.58 6.48 6.46 6.17 6.16 5.90 5.89 5.73 5.72 New York City............. 5.7i 5.66 6.37 6.33 6.22 6.25 5.95 5.88 5.70 5.69 5.63 5.58 7 Cither Northeast..................... 6,29 6.29 6.59 6.61 6.69 6.70 6.42 6.42 6.19 6.08 5.95 5.99 8 North Central............. 5.91 5.92 6.67 6.65 6.46 6.41 6.18 6.16 5.87 5.89 5.74 5.76 7 Southeast.................................. 5.94 5.92 6.46 6.38 6.25 6.18 5.96 5.97 5.75 5.78 5.68 5.67 R Southwest................................. 6.03 6.01 6.61 6,54 6.36 6.32 6.09 6.10 5.95 5.95 5.82 5.78 4 West Coast.............................. 6.03 6.02 7.08 7.12 6.79 6.84 6.34 6.38 5.89 5.95 5.76 5.72 Note.—Beginning Feb. 1967 the Quarterly Survey of Interest Rates on 1960—Aug. 23 4% 1967—Jan. 26-27 5U-5S4 Business Loans was revised. For description of revised series see pp. 721- 1965—Dec. 6 5 Mar. 27 5'4 27 of the May Bulletin. The weights in computing weighted average 1966—Mar. 10 5U Nov. 20 6 interest rates on short-term business loans have been revised. June 29 5% Bank prime rate was 5 per cent during the period Jan. 1, 1960-Aug. Aug. 16 6 22. 1960. Changes thereafter to new levels (in per cent) occurred on the following dates: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ INTEREST RATES A-29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period m 4 p c o - a o n t p m o t e h r l 6 s . , - 1 m d 3 p p i - o r l a n a e t p o c c t e h e t l r d 6 s y - , 2 9 b 0 a a a c d n n c a k c e y e e p r s s t s , ­ * 1 F f r e u a d n t e e d r s 3 a l n R ew a 3 t e - i m s o su o n e n th b M il y l a s ie r l 3 k d et n R ew a 6 t - e i m s s o u o n n e th b M il y l a s ie r l 3 k d et 9 B k - i e ll t t s o y ( i m 1 e 2 l a d - r m ) ­ 3 ont O h t h is e s r u « es 3 is - y s u t e o a e s r 5 7 - 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 1967.............................. 5.10 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 1966—Dec................... 6.00 5.88 5.60 5.40 5.007 4.96 5.108 4.98 5.00 5.10 5.07 1967.—jftn..................... 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 3.89 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 Oct......... 5.07 4.96 4.88 3.88 4.588 4.55 5.100 5.06 5.21 5.32 5.52 Nov................... 5.28 5.17 4.98 4.12 4.762 4.72 5.286 5.24 5.38 5.55 5.73 Dec.......... 5.56 5.43 5.43 4.51 5.012 4.96 5.562 5.49 5.58 5.69 5.72 Week ending— ] 967—Dec. 2............ 5.50 5.25 5.15 4.36 4.957 4.92 5.536 5.49 5.57 5.60 5.67 9.........5...50 5.35 5.35 4.36 4.989 4.92 5.580 5.49 5.64 5.68 5.70 16 5.53 5.40 5.38 4.52 4.941 4.96 5.493 5.50 5.58 5.68 5.74 23............ 5.63 5.50 5.50 4.48 5.127 4.96 5.659 5.44 5.51 5.68 5.68 30........... 5.63 5.50 5.56 4.63 4.989 4.99 5.515 5.49 5.56 5.73 5.74 i Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. a 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 Total 1 (long­ term) Total 1 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 ­ 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 1967.................................................... 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 1966—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 3.90 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 4.37 5.91 5.62 6.33 5.84 5.94 5.96 5.35 3.11 Sept........................................ 4.99 4.14 3.81 4.48 6.00 5.65 6.40 5.93 6.03 6.02 5.41 3.07 ”3.61 Oct........................................ 5.18 4.24 3.88 4.64 6.14 5.82 6,52 6.05 6.24 6.12 5,59 3.07 Nov........................................ 51.44 4.34 3.99 4.66 6.36 6.07 6,72 6.28 6.42 6.39 5.79 3.18 Dec....................................... 5.36 4.42 4.15 4.73 6.51 6.19 6.93 6.39 6.63 6.57 5.95 3.09 Week ending— Dec 2.. ............................ 5.39 4.35 4.03 4.68 6.44 6.13 6.81 6.36 6.47 6.4! 5.84 3,12 9................................ 5,38 4.42 4.15 4.73 6.49 6.14 6.89 6.38 6.52 6.56 5.92 3.08 16............................... 5.38 4,42 4.15 4.73 6.51 6.16 6.93 6.38 6.55 6,58 5.92 3.09 23.......................... .. 5.34 4.42 4.15 4.73 6.51 6.22 6.96 6.39 6.74 6,58 6.00 3.10 30................................ 5.35 4.42 4.15 4.73 6.53 6.24 6.97 6.42 6.76 6.57 5.94 3.08 Number of issues.......................... 10-11 20 5 5 120 30 30 40 40 40 14 500 500 t Includes bonds rated Aa and A, data for which are not shown sep­ more. State and local govt, bonds: General obligations only, based on arately. Because of a limited number of suitable issues, the number Thurs. figures. Corporate bonds: Averages of daily figures. Both of these of corporate bonds in some groups has varied somewhat. As of Dec. series are from Moody’s Investors Service series. 23, 1967, Aaa-rated railroad bonds are no longer a component of the Stocks: Standard and Poor’s Corporate series. Dividend/price ratios are railroad average or the Aaa composite series. based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on 8 median yields for a sample of non- Note.—Annual yields are averages of monthly or quarterly data. callable issues—12 industrial and 2 public utility; common stock ratios Monthly and weekly yields are computed as follows: U.S. Govt, bonds: on the 500 stocks in the price index. Quarterly earnings are seasonally Averages of daily figures for bonds maturing or callable in 10 years or adjusted at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-30 SECURITY MARKETS □ JANUARY 1968 MORTGAGES: NEW AND EXISTING HOMES SECURITY PRICES (Per cent) Bond prices Common stock prices (per 5100 bond) (1941-43- 10) Vol­ Contract interest rate on ume Yield conventional first mortgages of Period o i n n s F u H re A d - FHAseries FHLBB series Period ( G t U l e o o r . n m S v g t . ) , ­ S l a o t n c a d a te l A C p a A o o t r e r A ­ ­ Total d t I r u n ia s ­ l ­ R ro a a U d - P u i l u t t i U c y b - ­ ( • t b t h i r a n a o r g d u e ­ s s ) . New New Existing New Existing 1964............... 84.46 111.5 95.1 81.37 86.19 45.46 69.91 4,888 1965............... 83.76 110.6 93.9 88.17 93.48 46.78 76.08 6,174 1961................... 5.69 5.97 6.04 1966............... 78.63 102.6 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—Dec... 78.73 102.4 83.0 81.33 86.50 41.44 68.86 7,883 1964................... 5.45 5.80 5.85 5.78 5.92 1965................... 5.47 5.83 5.89 5.76 5.89 1967—Jan... 81.54 106.0 85.9 84.45 89.88 44.48 70.63 9,885 1966................... 6.38 6.40 6.47 16.11 16.24 Feb... 80.73 106.4 86.4 87.36 93.35 46.13 70.45 9,788 1967................... 6.55 6.53 6.57 Mar. . 80.96 105.8 85.6 89.42 95.86 46.78 70.03 10,217 Apr. . 80.24 104.9 85.4 90.96 97.54 45.80 71.70 9,389 1966—Oct......... 6.70 6.75 6.39 6.50 May.. 77.48 101.1 83.4 92.59 99.59 47.00 70.70 9,933 Nov........ 6.81 6.70 6.75 6.45 6.54 June.. 76.37 100.2 81.7 91.43 98.61 48.19 67.39 9,666 Dec......... 6.77 6.65 6.70 6.49 6.55 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 95.81 103.84 49.27 67.45 10,251 Feb......... 6.46 6.50 6.55 6.44 6.50 Oct... 73.01 95.9 78.5 95.66 104.16 46.28 64.93 10,223 Mar........ 6.35 6.45 6.50 6.41 6.44 Nov.. 70.53 95.2 76.8 92.66 100.90 42.95 63.48 10,578 Apr........ 6.29 6.40 6.45 6.37 6.36 Dec. . 71.22 93.6 75.9 95.30 103.91 43.46 64.61 11,476 May.... 6.44 6.45 6.50 6.28 6.31 June.... 6.51 6.50 6.50 6.29 6.30 Week July.... 6.53 6.50 6.55 6.34 6.33 ending— Aug........ 6.60 6.55 6.55 6.34 6.38 Sept........ 6.63 6.55 6.60 6.37 6.37 1967 Oct......... 6.65 6.55 6.60 r6.37 '6.42 Nov........ 6.77 6.65 6.70 "6.37 »6.42 Dec. 2........ 70.95 94.2 76.2 94.33 102.74 43.41 64.56 10,221 Dec........ 6.81 6.70 6.75 ............... 9 71.10 93.8 76.1 95.38 104.03 43.75 64.37 11,968 16........ 71.10 93.6 75.8 95.19 103.86 43.59 64.01 11,536 23........ 71.49 93.6 76.0 95.03 103.61 43.07 64.45 10,586 1 New FHLBB series beginning July 1966. 30........ 71.38 93.3 75.7 95.88 104.46 43.41 65.77 12,333 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 scries on average interest rates stocks on the N.Y. Stock Exchange for a 5H-h°ur trading day. on conventional first mortgages arc unweighted and are rounded to the nearest 5 basis points. For FHLBB series, see footnote to table on Conventional First Mortgages, p. A-47. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans to others than N.Y. Stock Exchange brokers and dealers for pur­ Money borrowed on— firms secured by— chasing or carrying— Cus­ Month Total tomers’ securities net other than Other securities free U.S. Govt. se G c U u o r .S v it t . i , e s se O cu t r h i e t r ie s se G c U u o r . v S it t . i , e s se O cu th ri e t r ie s se G c U u o . r S v it t . i , e s Customer Other c a b r n e a c d l e ­ i s t Total collateral collateral 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—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 6,603 76 2,197 n.a. n.a. n.a. n.a. 2,341 Aug........ '8,869 70 6,607 77 2,256 n.a. n.a. n.a. n.a. 2,281 Sept........ 9,162 119 6,825 96 2,337 n.a. n.a. n.a. n.a. 2,401 Oct......... '9,534 101 '7,111 77 2,423 n.a. n.a. n.a. n.a. 2,513 Nov........ 9,644 147 7,202 79 2,442 n.a. n.a. n.a. n.a. 2,500 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

JANUARY 1968 □ OPEN MARKET PAPER; SAVINGS INSTITUTIONS A-31 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 di l r a e c c e t d - Total Banks Others p i I n o m r to t ­ s f p r E o o x r m t ­ s D e o x ll ­ ar shi p p o p i e n d t s b i e n tw — een dealers 1 ly2 Total O bi w ll n s bo B u il g ls h t O ac w ct n . F ei o g r n ­ U S n ta it t e es d U S n t i a t t e e d s change United Foreign Corr. States countries I960........................ 4,497 1,358 3,139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961........................ 4'686 1,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962........................ 6,000 2,088 3,912 2,650 i; 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 11345 567 908 56 41 1,317 1964........................ 8,361 2,223 6,138 3'385 1,671 1,301 370 94 122 1,498 667 999 111 43 1 '565 1965........................ 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 27 35 1,564 1966—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 31089 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 1,668 Feb............. 15,199 3'781 11,418 3,575 1,266 11004 262 113 201 1,995 918 851 65 82 1,659 Mar............ 161034 41360 1L674 31704 11366 11077 290 110 232 11996 962 921 60 71 1’691 Stay 1 1 6 7 , , 2 0 4 6 9 7 4 4, ' 7 3 1 5 3 6 1 1 1 2 ' ' 8 3 9 5 3 4 3 31 ,8 9 3 6 0 4 1 1, , 3 3 3 5 9 6 1 11 ,1 1 2 4 8 7 2 1 2 9 9 2 1 7 6 0 6 2 3 7 4 2 8 2 2 , 2 0 0 3 7 5 9 9 7 4 1 9 9 9 7 9 1 8 5 3 5 8 5 4 9 6 1 11 ,7 9 7 3 3 3 16,150 41934 11,216 4,131 11361 1,191 170 136 379 2,254 1,001 1,007 45 39 2,038 July............ 17,044 41976 121068 4316 11549 1,252 297 136 379 2,052 '974 1,040 65 41 1 1996 16,816 4,979 11,837 4.103 11584 1'195 389 78 324 2,118 1,020 '989 70 75 1,949 Sept 16,220 5,124 11,096 4.146 1,635 1,239 396 65 252 2,194 1,037 991 68 91 1 '958 Oct............. 16,777 5,186 It,591 4,136 1,822 1,298 524 52 205 2,056 1,085 956 51 83 1,961 Nov............ 17,147 5,136 12,011 4,218 1,878 1,376 501 54 163 2,123 1,095 975 52 124 1,971 * 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 li l ­ Depos­ Other G re e s n er e v r e a l c M om or m tg i a tm ge e n lo t a s n 9 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a a d te l C r o a a n r t p d e o ­ Cash assets ge a t n i n e e d r s a l its 2 lia ti b e i s li­ co a u c n ­ ts govt. other 1 reserve accts. Number Amount 1941................................. 4,787 89 3,592 1/ 829 689 11,772 10,503 38 1,231 1945............................... 4,202 62 10,650 1.257 606 185 161962 15,332 48 1,582 1960................................ 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961............................. 28,902 475 6,160 677 51040 937 640 421829 381277 781 3,771 611855 1,654 1962............................... 32,056 602 6,107 527 5,177 956 695 46,121 411336 828 3,957 114,985 2,548 1963................................ 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 104,326 2,549 1 1 9 9 6 6 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 0 4 , , 3 4 2 3 8 3 7 8 3 6 9 2 5 5 1 ,4 7 8 91 5 3 3 9 2 1 0 5 5 1 ,1 0 7 9 0 9 1 1 , , 0 01 0 7 4 9 88 4 6 5 5 4 8 1 ,2 2 3 3 2 8 4 5 8 2 , , 8 4 4 4 9 3 1,1 9 2 8 4 9 4 4 , , 4 66 0 5 0 1 1 2 3 0 5 , , 4 99 7 2 6 2 2 1 1 8 6 2 9 0 7 1966—Nov..................... 46,953 1,131 4,848 254 5,644 799 1,029 60,658 54,326 1,463 4,869 91,634 2,072 Dec..................... 47,193 1,078 4'764 251 5’,719 953 1,024 60', 982 551006 1,114 4,863 88,808 21010 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..................... 471973 11136 4,645 246 61480 11140 11081 62,701 561538 11249 4,914 91,125 21172 Apr..................... 48,236 1,075 4,481 243 6,803 11069 1,076 62,982 56,739 1,381 4,863 88,295 2,242 May.................... 48,493 1,261 41433 235 71062 1,095 1,074 63,654 57,185 11546 4,923 92,754 21495 June.................... 48,771 11226 4,'336 249 7,313 11140 1,108 641143 57,836 1,379 4,929 95,187 2,657 July..................... 49,010 1,144 4,396 246 71642 1,084 1,116 641639 58369 1,563 4,908 91,559 2,647 Auc. 49,322 l',210 41367 242 7',910 1,034 1,117 65',201 58,499 1,732 4,969 n.a. 2,592 Sept.................... 49,557 1,152 4,406 243 8,054 999 1,147 651559 59,066 1,525 4,967 n.a. 2,724 Oct...................... 49,827 1,169 4,299 228 8,080 959 1,134 65,696 59,257 1,489 4,950 n.a. 2,710 Nov.............. 50,046 1,243 41397 222 81107 915 1,130 66,061 59,462 1,597 5,002 n.a. 2,684 i 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. A-17. 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. Data include building loans agencies. Loans are shown net of valuation reserves. beginning with Aug. 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-32 SAVINGS INSTITUTIONS □ JANUARY 1968 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period T as o s t e a ts l Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks M ga o g r e t s ­ e R st e a a t l e P lo o a li n c s y O as t s h e e ts r Statement value: 1941............................................. 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 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—-Oct.^............................... 165,418 10,849 4,774 3,155 2,920 68,385 60,974 7,411 63,917 4,842 8,849 8,576 Nov................................. 166,225 10,838 4,850 3,111 2,877 68,388 61,031 7,357 64,353 4,842 9,004 8,800 Dec.................................. 166,942 10,848 4,862 3,119 2,867 68,362 60,927 7,435 64,803 4,878 9,136 8,915 1967—Jan................................... 168,210 10,850 4,847 3,122 2,881 68,994 61,490 7,504 65,193 4,885 9,250 9,038 Feb.................................. 168,933 10,793 4,821 3,081 2,891 69,373 61,795 7,578 65,503 4,890 9,341 9,033 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 Aug................................. 173,839 10,557 4,665 2,980 2,912 72,666 64,205 8,461 66,506 5,050 9,808 9,252 Sept................................. 174,664 10,501 4,616 2,966 2,919 73,075 64,456 8,619 66,701 5,080 9,875 9,432 Oct.................................. 175,390 10,551 4,655 2,981 2,915 73,546 64,822 8,724 66,884 5,100 9,933 9,376 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 g r e t s ­ s G e U c o . u v S r t . i , ­ Cash Other 1 a li , s a T s b e o i t l t s i a t 2 i l — e s 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 id v e e s d B m or o r n o e w y e 3 d L p o r a o n c s e s in s Other c m o l e m o n a m t n s i 4 t­ ties profits 1941...................... 4,578 107 344 775 6,049 4,682 475 256 6'6 1945...................... 5,376 2,420 450 356 8,747 7,365 644 336 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 7,960 129,580 110,385 8'704 6,444 2,198 1,849 2’751 1966—Nov.......... 114,081 7,935 2,856 8,843 133,715 112,278 9,009 7,570 1,364 3,494 1,626 114,192 7’772 3^361 8,672 133,997 114,010 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 1'925 114,797 8,058 3,544 8,754 135,153 1161414 9,064 5'441 1 355 2,869 2,269 Apr........... 115,233 7 J 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 3,420 118^674 8,857 3,127 9,221 139,879 120,677 9,265 41399 2,130 3'408 3,443 Sept.......... 119,529 9,017 3,078 9,158 140,782 121,870 9,255 4,382 2,158 3,117 3.337 Oct.r..... 120,362 9,171 3^40 9,217 141,790 122,365 9,256 4,373 2,213 3,583 3,310 Nov........... 121,118 9,428 3,060 9,355 142,961 122,941 9,249 4,454 2,243 4,074 3,277 1 Includes other loans, stock in the Federal home loan banks, other 4 Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding page) would include loans in process. and fixtures. 2 Before 1958, mortgages are net of mortgage-pledged shares. Asset Note.—Federal Savings and Loan Insurance Corp, data; figures are items will not add to total assets, which include gross mortgages with no estimates for all savings and Ioan assns. in the United States. Data deductions for mortgage-pledged shares. Beginning with Jan. 1958, no beginning with 1954 are based on monthly reports of insured assns. and deduction is made for mortgage-pledged shares. These have declined annual reports of noninsured assns. Data before 1954 are based entirely consistently in recent years from a total of $42 million at the end of 1957. on annual reports. Data for current and preceding year are preliminary 3 Consists of advances from FHLB and other borrowing. even when revised. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ FEDERALLY SPONSORED CREDIT AGENCIES A-33 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks (s F M e e c d o o e n r r t d g a a a l 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 a A t n e o d m c ­ e ­ s I m nv en es ts t­ p C a o d a n s e s d i ­ h t s B n a o o n n t d e d s s M po b d e s e e m i r ­ t s ­ C s a to p c it k al M l g o a a o g n r e t s ­ D n t e a u o b n r t e d e e s n s ­ c L a o t o o t i p v a o e n e s r s ­ D t e u b re e s n­ c L o d a o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 1958............... 1,298 999 75 714 819 769 1,323 1,100 510 252 1,157 1,116 2,089 1,743 1959............... 2,134 1,093 103 1,774 589 866 1,967 1,640 622 364 1,391 1,356 2,360 1,986 1960............... 1,981 1,233 90 1,266 938 989 2,788 2,523 649 407 1,501 1,454 2,564 2,210 1961............... 2,662 1,153 159 l,57t 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962............... 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963............... 4,784 1,906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 1,952 3,310 2,834 1964............... 5,325 1;523 141 4,369 1,199 1,227 1,940 1,601 958 686 2,247 2,112 3,718 3,169 1965............... 5,997 1,640 129 5,221 1,045 1,277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966—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 1,241 1,384 4.431 3,984 1,342 1,113 3,056 2,850 5,035 4,450 Mar... 5,175 3,564 95 5,709 1,490 1,387 4,459 4,010 1,563 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 1,392 4,455 3,938 1,316 1,101 3,423 3,186 5,248 4,611 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 4,611 July.. 4,221 3,420 81 4,585 1,522 1,392 4,507 3,469 1,335 1,072 3,639 3,419 5,358 4,644 Aug... 4,153 3,160 73 4,395 1,344 1,392 4,474 4,049 1,368 785 3,696 3,465 5,404 4,787 Sept... 4,122 2,898 63 4,160 1,318 1,394 4,838 3,927 1,384 1,094 3,523 3,450 5,449 4,787 Oct... 4,114 2,787 81 4,060 1,323 1,393 5,022 4,432 1,438 1,138 3,460 3,457 5,502 4,871 Nov.. 4,188 2,770 77 4,060 1,347 1,394 5,178 4,543 1,475 1,200 3,374 3,259 5,546 4,871 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. elude only publicly offered securities (excluding, for the home loan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, NOVEMBER 30, 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: Jan. 25, 1968..........................5% 250 Debentures: Jan. 22, 1968......................5 161 Feb. 26, 1968........................5.35 535 June 12, 1973..................4ft 146 Mar. 20, 1968......................414 111 Mar. 1, 1968..........................4% 250 Feb. 10, 1977.......................4)4 198 May 20, 1968......................5 242 Mar. 25, 1968........................5.35 400 June 20, 1968......................4 186 Apr. 25, 1968..........................5% 625 Aug. 20, 1968.......................414 160 May 27, 1968..........................5)4 300 Oct. 21, 1968.....................5.50 407 July 25, 1968........................5.45 300 Jan. 20, 1969.......................444 341 Aug. 26, 1968..........................5% 500 Mar. 20, 1969.......................4ft 100 Nov. 25, 1968..........................544 300 Banks for cooperatives Apr. 21, 1969.....................5.60 250 Jan. 27, 1969..........................5)4 300 Debentures: July 15, 1969.......................4M i30 Mar. 25, 1969..........................5% 300 Dec. 4,1967.................4.30 276 July 15, 1969.......................4)4 60 Feb. 1, 1968.......................5.20 309 Oct. 20, 1969.......................414 209 Apr. 1, 1968.......................5.35 268 Jan. 20,1970........................5ft 209 Federal National Mortgage Associa­ Feb. 20, 1970.......................5)4 82 tion—Secondary market opera­ Apr. 1, 1970.......................314 83 tions July 20,1970....................... 5% 85 Federal intermediate credit banks May 1,1971........................314 60 1,156 De D be ec n . t ur 4 e , s : 1 967....................5’4 '402 S O e c p t t . . 2 1 3 5 , , 1 1 9 9 7 7 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 % % 2 1 0 0 0 9 Debentures: J F a e n b . . 2 1, , 1 1 9 9 6 6 8 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 . . 4 4 0 5 4 39 1 7 3 F F e e b b . . 2 2 0 0 , , 1 19 9 7 7 4 3 . - . 7 ... 8 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 1 )4 4 1 1 4 5 8 5 Mar. 11, 1968......................3% 87 Mar. 4, 1968.......................4.50 375 Apr. 21, 1975......................4% 200 June 14, 1968........................ 4)4 400 Apr. 1, 1968.......................4.85 347 Feb. 24, 1976......................5 123 S A e p p r t . . 1 1 0 0 , , 1 1 9 9 6 69 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 .. t 5 H % o 35 8 0 8 J M u a n y e 3 1 , , 1 1 9 9 6 6 8 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 .5 .3 1 0 4 3 3 4 5 5 0 J A u p l r y . 2 20 0 , , 1 1 9 9 7 7 8 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 ' H % 1 1 5 5 0 0 May 12, 1969..........................414 300 July 1,1968........................5.55 285 Jan. 22, 1979......................5 285 July 10,1969..........................51% 250 Dec. 12, 1969..........................6 550 Tennessee Valley Authority Apr. 10, 1970..........................4% 142 Short-term notes........................ 200 Sept. 10, 1970..........................4)4 119 Bonds: Oct. 13, 1970..........................SU 400 Federal land banks Nov. 15, 1985...................4.40 50 Aug. 10, 1971..........................4% 64 Bonds: July 1, 1986......................4% 50 Sept. 10, 1971..........................4)4 96 Feb. 15, 1967-72...............4)4 72 Feb. 1, 1987......................4)4 45 Feb. 10, 1972......................... 98 Oct. 1, 1967-70...............4)4 75 May 15, 1992....................5.70 70 June 12, 1972..........................4% 100 Dec. 20, 1967...............5% 329 Nov., 1992.............................6)4 60 Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. 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A-34 FEDERAL FINANCE □ JANUARY 1968 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 s a . : ­ t E r T e q c o u t t a s a . l l 2 s : Budget f T P un r lu u d s s s : t 3 A m L d e e j n s u t s s s : * t ­ E p T q a o u y t a t a s l l . s : payts. (d d i e i r n b e c t t a I g n b v e e y n s . t & , L N ca e o s s n h s: ­ Eq N u e a t ls: & agen.) trusts debt Cal. year—1964............. 88,696 30,742 4,324 115,030 96,944 28,396 5,069 120,271 -5,241 9,084 2,684 619 5,780 1965............. 96,679 31,384 4,449 123,376 101,379 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........... 115,849 44,640 6,056 153,596 125,718 34,510 5,085 155,142 -1,546 6,734 10,852 -314 -3,804 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......... 66,664 25,330 3,643 87,915 61,655 16,883 3,480 75,057 12,858 -4,308 7,482 -527 -11,263 Month: 1966—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.................. 18,304 5,262 1,982 21,501 10,131 3,443 812 12,762 8,739 -4,971 1,344 -110 -6,206 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 Sept................... 12,404 3,108 279 15,176 12,468 3,127 1,394 14,201 975 -338 -1,003 54 610 Oct.................... 6,823 2,329 373 8,739 11,530 3,889 604 14,815 -6,076 5,058 - 432 264 5,225 Nov................... 7,529 4,067 541 11,032 11,730 3,361 -111 15,202 -4,170 4,733 292 102 4,339 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 Tr ( e e a n su d r o er f ’ s p e a r c i c o o d u ) nt Period Agencies & trusts Change Operating bal. s B d u u e r o f d p i r c g l u i e t s t f T un ru d s s t 3 a C c l c e o a u ri n n t g s i M ss s u e a o c a r f . k n 3 e c t e i I n G n s e v o U c e v . . s t S 3 t , , . p d g d u i r i r e b n o e b s l c t i s t c T o r H u e t a e s s l i u d d r e y a T u cc r r e o e a r u ’ s n s ­ t Balance B F a . n R k . s a l T a o c n c a a d t x n s . O as n t s h e e t e t r s Fiscal year—1964......... -8,226 1,446 948 1,880 -2,T1S 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......... -9,869 10,130 -657 420 -10,852 6,314 135 -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 -111 3,481 -5,026 -997 660 5,825 12,407 766 10,050 1,591 July-Dec......... -14,878 1,683 -1,021 1,630 -3,370 9,412 -149 -6,396 6,011 416 4,096 1,499 1967—Jan.-June........ 5,009 8,447 364 -1,210 -7,482 -3,098 284 1,748 7,759 1,311 4,272 2,176 Month: 1966—Nov.......... -2,993 1,101 — 1,120 -55 -989 2,523 84 — 1,618 4,799 299 3,041 1,459 Dec................... 1,093 -371 -78 767 -166 -92 -60 1,213 6,011 416 4^96 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 Apr.................. 4 070 1,061 907 — 563 329 — 31145 595 2,064 8,884 1,360 5*415 21109 May......... -4^626 2^471 —912 285 — 4,213 3,’087 -649 —3,259 5,626 574 3,469 1 ^583 June................. 8 173 1,819 -1 061 -304 — 1,344 -4,667 483 27133 7,759 1,3ii 4 272 2,176 July.................. -51131 —631 355 274 465 4,416 -44 -208 7,551 1 ,’340 4*552 1,659 Aug.................. -5,428 1,523 -658 -66 -1,723 5,213 -196 -944 6,607 1,051 3,937 1,619 Sept.................. — 63 — 19 1,060 — 384 1,003 46 — 87 1,729 8*336 778 5*808 1,750 Oct................... -4,707 -1,559 -34 452 ’432 4,606 -16 -794 7*542 697 5,171 1.674 Nov................. -4,201 706 -754 145 -292 4’,588 133 59 7,601 1,581 4,407 1 ',613 t Primarily interest payments by Treasury to trust accounts and accumu- 6 Seasonally adjusted data include accelerated corporate tax payments Nations to U.S. employee trust funds. of about $3 billion in calendar year 1966 and $5 billion in calendar year 2 Includes small adjustments not shown separately, 1967. 3 Includes net transactions of Govt.-sponsored enterprises. 4 Primarily (1) intragovt, transactions, (2) noncash debt, (3) clearing Note.—Based on Treasury Dept, and Bureau of the Budget data, accounts. s Includes technical adjustments not allocated by functions. 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JANUARY 1968 □ FEDERAL FINANCE A-35 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Total W I i n th d ­ ivid O ua th l er C r o a r t p e o­ Total a L b n i a q d c u c t o o o r ­ H w ig ay h­ Total F R a I n . C R d A . e U m n p - l . E a g s n t if a d t t e t C o u m s s ­ r m e a I p e n n n a t d . t y s ­ f R un e d ­ s Other held Fiscal year—1964.,. 115,530 39,259 15,331 24,301 13,950 5,630 3,646 21,936 17,405 4,037 2,416 1,284 1,702 7,148 2,499 1965... 119,699 36,84016,820 26,131 14,793 5,921 3,782 22,138 17,833 3,817 2,746 1,478 2,097 6,030 2,686 1966... 134,480 42,811 18,486 30,834 13,398 5,888 4,037 25,527 21,243 3,773 3,094 1,811 2,303 7,256 3,472 1967... 153,596 50,521 18,850 34,918 14,114 6,156 4,652 32,857 28,700 3,657 3,014 1,972 2,743 9,582 4', 189 Half year: 1965—July-Dec... 55,024 19,964 3,806 10,892 7,046 3,063 2,068 9,601 7,743 1,607 1,274 898 1,296 1.062 1,309 1966—Jan.-June.. 79,456 22,84714,680 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 1967—Jan.-June.. 87,915 25,880 14,867 22,873 7,352 3,051 2,339 19,068 16,731 2,088 1,756 955 1,250 8,440 2,354 Month: 1966—Nov........ 10,698 5,155 148 580 1,212 600 375 2,839 2,329 469 196 179 216 185 358 Dec............. 12,845 3,791 427 4,636 1,110 492 356 1,761 1,673 52 204 161 536 168 387 1967—Jan.............. 11,251 3,674 3,075 823 1,147 496 340 1,808 1,615 146 269 160 219 115 191 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 61 270 170 178 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 1,274 591 355 4,587 3,669 874 445 166 207 2,392 255 June........... 21,501 4,204 3,071 9,328 1,293 606 348 2,698 2,614 50 196 176 233 847 1,149 July............. 8,938 3,843 264 946 1,241 523 369 2,129 1,977 104 207 160 197 261 212 Aug............ 11,766 5,164 211 642 1,125 487 463 3,981 3,319 620 308 178 189 257 225 Sept............ 15,176 4,236 2,864 4,032 1,088 539 355 2,270 2,144 92 199 163 189 195 330 Oct.............. 8,739 4,171 298 913 1,222 600 345 1,489 1,406 40 234 179 223 180 190 Nov............ 11,032 5,302 162 588 1,311 n.a. 383 3,076 2,625 409 193 193 213 197 191 Cash payments to the public Period Total 3 t f i N e d o n n e 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 e h A t c u g u r r l e ­ i­ so N u u r r r a e a c ­ t l e ­ s t m C r a a e o n n r m d s c p e ­ . c H d i o n e m o g v u e m & s l. ­ , l H a w b e e o l a f r l a t , r h & e , E t d io u n ca­ e V ra e n t­ s In e t s e t r­ g G e o r e v a n 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 1967........ 155,142 71,843 4,413 5,426 4,159 3,522 7,102 -1,723 39,002 3,286 6,978 10,371 2,641 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.... 75,056 37,996 1,955 2,570 523 1,518 2,731 -3,522 20,814 1,530 3,506 5,741 1,260 Month: 1966—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 -191 224 336 -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................ 12,762 6,286 381 427 -237 258 298 -114 3,407 293 462 700 231 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 Sept................. 14,201 6,627 502 377 802 326 733 329 3,456 356 580 437 198 Oct.................. 14,815 6,728 558 386 418 347 819 280 3,620 312 639 310 243 Nov................. 15,202 6,462 546 377 83 336 680 314 3,680 298 626 1 ,861 233 1965 1966<> 1967* 1965 1966 1967 Item IV I II III IV I II 111 IV I 11 III IV I II 111 Seasonally adjusted Not seasonally adjusted Cash budget: Receipts.............................. 31.7 33.4 37.1 37.3 38.4 39,2 38.5 38.5 25.8 33.3 46.2 34.6 31.1 38.0 49.9 35.9 Payments................................. 33.7 36.6 35.8 39.7 38.6 38.8 38.1 43.4 34.0 34.6 36.2 41.3 38.8 36.7 38.4 45.1 Net....................................... -2.0 -3.2 1.3 -2.5 -.2 .4 .4 -4.9 -8.1 -1.3 10.0 -6.7 -7.7 1.4 11.5 -9.2 For notes see opposite page, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-36 U.S. GOVERNMENT SECURITIES □ JANUARY 1968 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 t e t s a c s l t 2 Total Marketable C v ib e o r l n e t­ ­ Nonmarke S t in a a b g v s l ­ e i S s p su e e c s ia l * Total Bills Certifi­ Notes Bonds 4 bonds Total 5 bonds cates & notes 1941—Dec........................................ 64,3 57.9 50,5 41.6 2.6 6.0 33*6 8,9 6.1 7.0 1945—Dec........................................ 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec........................................ 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29,0 1959—Dec........................................ 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84,8 7.1 48.9 48.2 43.5 I960—Dec........................................ 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec........................................ 296.5 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 1962—Dec........................................ 304.0 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec........................................ 310.1 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec........................................ 318,7 317.9 267.5 212.5 56.5 59.0 97.0 3.0 52.0 49.7 46,1 1965—Dec........................................ 321.4 320,9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—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 Nfay................... 331.4 330.9 271.8 216.7 64.1 5.6 49.1 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 57.6 97.3 2.6 53.5 51.4 57.7 Oct......................................... 341.0 340.5 279.9 223.3 68.9 57.1 97.3 2.6 54.0 51.6 57.2 Nov,................... 345.6 345.1 284.2 226.1 69.5 61.4 95.3 2.6 55.6 51.7 57.4 Dec........................................ 345.2 344.7 284.0 226.5 69.9 61;4 95.2 2.6 54.9 51.7 57.2 1 Includes non-interest-bearing debt (of which $261 million on Dec. 31, 3 Includes (not shown separately); depositary bonds, retirement plan 1967, was not subject to statutory debt limitation) and guaranteed secu­ bonds, foreign currency series, foreign series, and Rural Electrification rities not shown separately. Administration bonds; before 1934, armed forces leave bonds; before 2 Excludes guaranteed securities. 1956. tax and savings notes; and before Oct. 1965, Series A investment 3 Includes amounts held by U.S. Govt, agencies and trust funds, which bonds. totaled $18,878 million on Nov. 30, 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. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E p n er d i o o d f T g d r o e o t b a s t s l ag G t U a e r o n n u .S v d c s t . t i e , s B F a . n R k . s Total m C b e a o r n m c k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie e r ­ s ­ r c O a o t t r i h p o e n o r s ­ g S l a o o t n c v a d a t t s e l . Savi I n n g d s i vidu O a t l h s er n F a i o t n a i r t o n e e n d i r g a ­ n l 1 i O m t n o t v 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 1960—Dec................. 290.4 55,1 27.4 207.9 62.1 6.3 11.9 18.7 18.7 45.6 20,5 13.0 11.2 1961—Dec................. 296.5 54.5 28.9 213.1 67.2 6.1 11.4 18.5 19.0 46.4 19.5 13.4 11.6 1962—Dec................. 304.0 55,6 30.8 217.6 67.2 6.1 11.5 18.6 20.1 46,9 19.2 15,3 12.7 1963—bee......... 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 37.6 221.1 64,0 5.7 11.1 '18.2 21,2 48.9 '20.8 16.7 14.5 1965—Dec................. 321.4 61.9 40.8 218.7 60,8 5.4 10.4 '15.8 22.9 49.6 '22.5 16.7 14.7 1966—Nov................ 329.9 68.9 43.9 217.1 55.5 4.8 9.7 16.0 '25.1 50.1 '25.3 15.4 '15.3 Dec................. 329.8 68.8 44.3 216.7 57,5 4.7 9.6 '14.9 '25.0 50.2 '24.5 14.5 '16.0 1967—Jan.................. 329.4 68.2 43.5 217.7 '57.8 4.5 9.5 '14.7 '24.8 50.1 '24.7 14.0 '17.4 Feb................. 330.1 69.6 44.0 216.6 r57.4 4.6 9.3 '14.7 '25.0 50.3 '24.3 14.1 '16.9 331.5 70.7 44.9 215.9 r58.1 4.5 9.2 14.1 '25.1 50.4 '23.7 14.5 '16.4 Apr................. 328.3 70.4 45.5 212.5 r57.2 4.3 9.0 12.9 '25.2 50.5 '22.3 15.0 '16.1 .......3..3...1....4 74.6 46.1 210.8 '56.4 4.3 9.0 '13.6 '25.1 50.5 '21.4 15.0 '15.4 326,7 75.8 46.7 204.2 '55.5 4.2 8.7 '11.1 '25.0 50.6 '20.4 14.7 '14.1 July................. 331,2 75.5 46.8 208.9 '58.3 4.2 8.7 '11.9 '24,7 50.7 '20.2 14.4 '15.9 336,4 77.2 46.6 212.6 '60.2 4.2 8.7 '12.4 '25.1 50.8 '20.7 14.3 '16.2 Sept................. 336.4 76.4 46.9 213.1 '61.1 4.2 8.7 '10.7 '24.9 50.8 '21.7 14.7 '16.2 Oct.................. 341.0 75.9 47.4 217.7 '63.6 4,1 8.8 '11.8 '24,6 50.9 '22.1 14.9 17.0 345.6 76.2 48.9 220.5 '63.5 4.2 8.7 13.2 '24.5 51.0 '22.6 16.2 16.5 i Includes investments of foreign balances and international accounts Note.—Reported data for F.R. Banks and U.S. Govt, agencies and in the United States. trust funds; Treasury estimates for other groups. 2 Includes savings and loan assns., dealers and brokers, nonprofit institutions, and corporate pension funds. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ U.S. GOVERNMENT SECURITIES A-37 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total BiUs 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—Oct. 31.............................................................. 223,271 100,208 68,854 31,354 78,088 19,837 8,419 16,719 Nov. 30.............................................................. 226,081 102,158 69,453 32,705 77,320 21,487 8,418 16,697 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—Oct. 31..................................................... 16,586 3,831 2,699 1,132 5,036 2,092 2,115 3,513 Nov. 30..................................................... 16,704 3,712 2,615 1,097 5,058 2,306 2,115 3,513 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—Oct. 31..................................................... 47,390 31,062 14,571 16,491 14,910 883 177 358 Nov. 30..................................................... 48,931 31,180 15,900 15,280 16,267 928 178 377 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—Oct. 31..................................................... 159,295 65,315 51,584 13,731 58,142 16,862 6,127 12,848 Nov. 30..................................................... 160,446 67,266 50,938 16,328 55,995 18,253 6,125 12,807 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—Oct. 31............................................. 52,117 17,461 11,149 6,312 27,159 6,504 470 523 Nov. 30............................................. 51,895 17,601 10,125 7,476 26,274 7,022 474 324 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—Oct. 31............................................. 4,009 617 409 208 1,544 697 268 883 Nov. 30............................................. 4,084 658 397 261 1 ,499 780 268 880 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—Oct. 31............................................. 7,426 601 332 269 2,130 1,037 1,162 2,496 Nov. 30............................................. 7,399 660 377 283 2,068 1,065 I ,164 2,442 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—Oct. 31............................................. 4,537 3,486 2,913 573 955 83 3 11 Nov. 30............................................. 5,307 4,186 3,566 620 1 ,018 89 3 11 Savings and loan associations: 1564—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—Oct. 31............................................. 4,531 1,056 744 312 1 ,904 819 270 482 Nov. 30............................................. 4,762 1 ,343 832 511 1,775 895 270 480 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—Oct. 31............................................. 14,546 5,520 4,627 893 2,350 1,071 1 ,589 4,015 Nov. 30............................................. 14,281 5,517 4,446 1 ,071 2,059 1,122 1 ,578 4,005 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—Oct. 31............................................. 72,129 36,574 31,410 5,164 22,100 6,651 2,365 4,438 Nov. 30............................................. 72,718 37,301 31,195 6,106 21,302 7,280 2,368 4,465 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,874 commercial banks, 501 mutual savings Ownership. banks, and 763 insurance companies combined; (2) about 50per 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

A-38 U.S. GOVERNMENT SECURITIES □ JANUARY 1968 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 i r n ye 1 a -5 r s y 5 e - a 1 r 0 s 10 O y v e e a r r s U s . e S c . u G rit o i v e L s Other m b C e a o r n m c k ia s - i o A th l e l r 1966—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 no 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 Anr.................................. 2,111 1,738 262 82 28 813 76 746 475 222 May................................ 2,075 1,636 332 77 30 784 63 720 507 188 1,802 1,502 226 52 23 659 56 621 466 199 July.................................. 2,084 *1,856 161 45 21 740 58 741 544 219 Aug........................... ♦ 1,884 1,578 243 33 30 662 60 662 500 159 Sept................................. 1,937 1,705 177 30 24 715 52 711 459 200 2,168 1,941 150 43 33 r795 66 841 465 202 Nov................................. 2,344 1,935 273 96 40 848 76 862 558 227 Week ending—• 1967—Nov. 1.......................... 2,414 2,072 179 135 29 894 80 860 581 176 8.........2..,.3...0..1......... 1,795 340 133 33 829 82 905 485 152 15.......................... 2,352 1,903 321 84 43 852 78 870 552 224 22.......................... 2,445 2,046 279 85 34 858 67 894 625 272 29.......................... 2^267 1'976 177 59 55 846 79 818 524 262 Dec. 6.......................... 2,388 2,071 193 62 61 997 74 815 503 179 13.......................... 2,355 1,927 298 63 67 889 73 833 560 220 20.......................... 2,905 2,407 302 132 65 1,209 105 1,018 573 242 27.......................... 3,238 2,730 334 116 58 1,027 99 1,400 712 193 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 aUotments of, and exchanges for, new U.S. Govt, securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi­ DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Govt. Period mat A ur ll i ties W 1 y it e h a i r n y 1 ea -5 r s 5 O y v e e a r r s se a c g u e r n i c ti y e s Period sou A r l c l es Y N o e r w k w E h ls e e r ­ e C t o io rp n o s r t a­ o A th l e l r City 1966—Nov.......... 3,756 2,925 639 193 429 4'158 3a447 530 181 502 1966—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 Mar.......... 4,084 3,362 475 248 415 Feb............. 41530 1,391 1,331 1,069 740 Apr...... 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 May........... 3,612 935 1,156 764 757 July.......... 2,239 2,115 106 18 239 June........... 3.262 1,121 984 665 492 2,903 2,564 312 26 265 July............. 2,147 '649 622 598 276 Sept.......... 2,545 2,305 202 38 242 Aue............. 2,717 835 734 868 280 Oct............ 2,880 2,837 22 20 379 Sept............ 2,’669 1,010 873 582 204 Nov.......... 3,109 2,793 258 57 309 Oct............. 2,660 '844 688 744 383 Nov............ 2,863 650 640 1,176 397 Week ending— Week ending— 1967—Oct. 4.. 2,120 2,059 29 32 240 11.. 2,858 2,801 21 36 274 1967—Oct. 4... 1,943 644 660 435 205 18. . 2,872 2,838 19 16 452 11... 2,189 601 549 644 395 25. . 3,032 3,016 6 11 480 18. .. 2,876 816 637 738 685 25... 2,999 985 834 916 265 Nov. 1. . 3,305 3,093 176 36 406 8. . 3,167 2,488 556 123 283 Nov. 1 . ., 3,055 1,142 766 879 269 15. . 3,034 2,580 303 51 241 8... 2,887 760 777 964 387 22. . 2,812 2,669 113 31 365 15. .. 2,699 543 591 1,142 422 29. . 3,395 3,339 37 19 337 22. 3,038 715 660 1,258 406 29... 2,728 511 515 1,337 364 Note.—The figures include all securities sold by dealers under repur­ chase contracts regardless of the maturity date of the contract, unless the 1 AU 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 Note,—Averages of daily figures based on the number of calendar days clearly represent investments by the holders of the securities rather than in the period. Both bank and non bank dealers are included. See also dealer trading positions. Note to the opposite table on this page. Average ofdaily figures based on number of trading days in the period. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ GOVERNMENT SECURITIES A-39 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, DECEMBER 31, 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. Dec. 31, 1967............... 1,401 May 31, 1968................... 2,403 Feb. 15,1971........ .5^ 2,509 Aug. 15, 1970........ .4 4,129 Jan. 4"1968................... 2,401 June 6, 1968................... 1,001 Apr. 1,1971......... 35 Aug. 15, 1971........ .4 2,806 Jan. 1111968................... 2,502 June 13, 1968................... 1,000 May 15, 1971..........5% 4,265 Nov. 15,1971........ ■3% 2,760 Jan. 18^1968................... 2,501 June 20, 1968................... 1,006 Oct. 1,1971.........• 1>4 72 Feb. 15,1972..........4 2,344 Jan. 25' 1968................... 2,501 June 24,1968*................. 3,006 Nov. 15, 1971........ .5% 1,734 Aug. 15, 1972........ .4 2,579 Jan. 31.’ 1968................ 1,401 June 27, 1968................... 1,003 Feb. 15, 1972.........• 4*4 2,006 Aug. 15, 1973........ .4 3,894 Feb. 1' 1968................... 2,501 June 30, 1968................... 1,501 Apr. 1,1972..........1% 34 Nov. 15,1973........ •4’4 4,353 Feb. 8’ 1968. 2,502 July 31,1968................... 1,501 May 15, 1972........ ■4% 5,310 Feb. 15,1974......... 3,129 Feb. 15’1968................... 2,501 Aug. 31, 1968................... 1,501 Oct. 1, 1972.........• 1W 7 May 15,1974.........■ 4*4 3,589 Feb. 1968................... 2,501 Sept. 30, 1968.................... 1,000 Nov. 15, 1974.........•5’4 1,652 Nov. 15,1974..........3% 2,242 Feb. 1958................... 3,905 Oct. 31, 1968................... 1,002 May 15, 1975-85...44 1,216 Mar. 1968................... 2,501 Nov. 30, 1968................... 1,000 Treasury bonds June 15, 1978-83...3# 1,571 Mar. 14’ 1968................... 2,501 Dec. 15, 1963-68.. 1,788 Feb. 15, 1980..........4 2,602 Mar. 21 1968................... 2,507 June 15, 1964-69...21/ 2,543 Nov. 15, 1980........ 1,909 Mar. 22’ 1968*................. 2,003 Treasury notes Dec. 15, 1964-69..•2% 2,490 May 15, 1985.........•3U 1,118 Mar. 281 1968................... 2,502 Feb. 15, 1968.......5% 2,635 Mar. 15, 1965-70.. 2,286 Aug. 15,1987-92...4’4 3,817 Mar. 31 1968................... 1,400 Apr. 1, 1968............1U 212 Mar. 15, 1966-71..•2ft 1,225 Feb. 15,1988-93...4 249 Apr. 4 3 1968.................... 1,000 May 15, 1968...........414 5,587 June 15, 1967-72..•2ft 1,256 May 15, 1989-94.. 1,559 Apr. IL 1968................... 1,001 Aug. 15, 1968...........4U 6,444 Sept. 15, 1967-72,. 1,952 Feb. 15, 1990.........• 3V4 4,885 Apr. 18’ 1968................... 1 ^doo Nov. 15, 1968...........5M 9,913 Nov. 15, 1967.........•3ft 2,019 Feb. 15, 1995..........3 1,801 Apr. 22, 1968*................. 3’507 Oct. 1, 1968............1U 115 Dec. 15, 1967-72..•2ft 2,627 Nov. 15, 1998.........•3% 4,367 Apr. 25' 1968................... 1,001 Apr. f,1969............1U 61 May 15, 1968..........3% 2,460 Apr. 30,’ 1968................... 1,402 Oct. 1, 1969............1U 159 Aug. 15, 1968.........• 3*4 3,747 May 2' 1968................... 1,000 Nov. 15, 1969...........544 10,738 Nov. 15, 1968.........• 3% 1,591 May 1968................... LOOl Apr. 1, 1970............1W 88 Feb. 15, 1969..........4 3,728 Convertible bonds May 16’ 1968................... 1,000 Oct. 1, 1970............1(4 113 Oct. 1, 1969..........4 6,249 Investment Series B May 23 1968................... 1,000 Nov. 15, 1970...........5 7,675 Feb. 15, 1970..........4 4,381 Apr. 1,1975-80...2’4 2,555 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) AH issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Use of proceeds Total amount Period Total G o e b a n l l e i­ r­ R n e u v e e­ PHA1 G l U o o a . v S n t . s , State S d p i s a s t e n t a c r d t i i , a c t l Other’ e d r e e l d iv 3 ­ Total c E at d io u n ­ b R r a o i n d a d g d e s s i U tie ti s l • ­ < H in o g u s s­ V a a e n i t s d e * r ­ p O p o t u s h e r e s ­ r gations auth. 1960. 7,292 4,771 2,095 302 125 1,110 1,984 4,198 7,102 7,247 2,405 1,007 1,316 426 201 1,891 1961. 8,566 5,724 2,407 315 120 1,928 2,165 4,473 8,301 8,463 2,821 1,167 1,700 385 478 1,913 1962. 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,368 2,963 1,114 1,668 521 125 2,177 1963. 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964. 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965, 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 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--Nov... . 976 598 364 12 231 334 410 n.a. 969 381 108 226 40 213 Dec....... 940 397 533 11 100 568 272 n.a. 940 297 280 87 131 164 1967--Jan........ 1,488 943 518 27 397 331 759 n.a. 1,482 408 219 163 1 691 Feb........ 1,230 933 287 10 257 307 665 n.a. 1,196 468 133 117 478 Mar.. . . 1,455 841 460 117 37 231 548 676 n.a. 1,438 427 123 339 126 423 Apr....... 1,131 849 256 26 182 246 703 n.a. 1,112 460 59 213 10 370 May.... 1,244 760 454 30 315 298 630 n.a. 1,218 486 116 102 11 503 June.... 1,498 860 492 117 29 138 682 677 n.a. 1,497 597 26 228 148 498 July.... 949 664 246 39 186 260 503 n.a. 941 282 36 187 7 429 Aug....... 854 585 251 18 195 233 426 n.a. 852 208 141 208 52 243 Sept.... 1,266 548 593 105 19 291 506 469 n.a. 1,256 303 134 234 110 476 Oct........ 961 672 257 32 207 255 499 n.a. 960 259 130 135 18 418 Nov.... 1,354 744 570 41 335 540 479 n.a. 1,353 210 41 314 10 .........7..7..9 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 5 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

A-40 SECURITY ISSUES □ JANUARY 1968 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 U.S. U.S. Total ment G U o . v S t . . 2 G a c g o y e v n 3 t ­ , l S o a t c n a a d t l e * Other 5 Total Total o P f l f i u e c r l b y e ­ d p v P l a a t r c e i e ­ ly d fe P r r r e e ­ d C m o o m n ­ Total m N on e e w y ? O p p o t u h s r e e ­ s r s r e i o t c i f u e s ­ 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 1965..................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 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—Oct.......... 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 1,159 10 1,418 1,262 900 362 17 139 1,400 1,399 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 Apr.......... 4,229 393 650 1,129 41 2,015 1,778 1,368 410 144 94 1,985 1,973 1,891 82 12 bfay........ 4,002 438 810 1,209 26 1,518 1,361 965 396 47 III 1,493 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......... •■4,371 415 407 925 34 2,590 2,376 1,889 487 85 130 •2,546 •2,457 2,181 275 89 Aug......... 10,625 6,458 250 840 '596 2,481 2,231 1,813 418 105 144 •2,440 •2,406 2,184 222 34 Sept......... 4,218 362 599 1,273 '220 1,763 1,549 902 647 41 173 •1,733 •1,723 1,581 142 10 Oct...... 4,618 422 708 991 78 2,417 1,948 1,375 572 231 239 •2,375 2,296 2,128 168 79 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e ll r a c n ia e l o u an 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 capital0 secu­ capital • secu­ capital * secu­ capital8 secu­ capital ’ secu­ capital8 secu­ rities rities rities rities rities rities 1959................................................... 1,941 70 812 28 942 15 3,189 15 707 1,801 6 I960................................................... 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961................................................... 3,691 287 1,109 36 651 35 2,883 106 1,435 382 2,248 22 1962................................................... 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 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—Oct...................................... 331 46 38 * 39 254 97 71 228 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 2 1,128 7 102 4 100 394 1 107 141 ...................................... 588 1 94 199 1 403 17 91 100 * 1,298 16 218 3 128 471 350 146 July....................................... 925 22 257 23 379 20 446 24 39 409 Aug....................................... 1,229 10 95 3 99 509 19 356 119 2 Sept....................................... 637 5 285 3 150 1 265 200 184 918 6 120 7 170 573 65 132 383 i Gross proceeds are derived by multiplying principal amounts or < Estimated gross proceeds less cost of flotation. number of units by offering price. ’ 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 s Foreign governments, International Bank for Reconstruction and maturing in more than 1 year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ SECURITY ISSUES A-41 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 I c n o ve 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......................... 13,641 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—H................. 7,517 2,233 5,286 3,993 1,153 2,841 1,518 2,006 548 532 970 1,475 iii................ 5,534 1,756 3,777 3,732 943 2,789 1,271 531 490 323 781 207 iv.......... 5,615 2,535 3,080 3,336 1,111 2,225 1,657 622 431 993 1,226 -371 1967—1................... 7,252 2,344 4,908 4,274 1,202 3,522 1,742 786 592 550 1,150 235 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 PubUc Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial « & 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—II................. 950 657 232 -72 166 648 679 119 549 157 264 937 .......1..,.1...9..8.. 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—I................... 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 < 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 N0TEi—Securities and Exchange Commission estimates of cash trans­ that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re t d io e n m s p­ s N al e e t s Total * po C si a t s io h n 3 Other Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C si a t s i h o n3 Other 1955 ............... 1,207 443 765 7,838 438 7,400 1966—Nov... 295 143 152 34,497 3,206 31,291 1956............... 1,347 433 914 9,046 492 8,554 Dec... 300 151 149 34,829 2,971 31,858 1957............... 1,391 406 984 8,714 523 8,191 1958............... 1,620 511 1,109 13,242 634 12,608 1967—Jan.... 391 183 209 37,230 2,869 34,361 Feb... 298 179 120 38,034 2,866 35,168 1959............... 2,280 786 1,494 15,818 860 14,958 Mar.. 389 226 163 39,443 2,682 36,761 I960............... 2,097 842 1,255 17,026 973 16,053 Apr... 358 214 144 41,191 2,666 38,525 1961............... 2,951 1,160 1,791 22,789 980 21,809 May.. 357 258 99 39,847 2,608 37,239 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 June.. 375 225 150 40,795 2,503 38,292 July... 425 222 203 43,064 2,515 40,549 1963. ....... 2,460 1,504 952 25,214 1,341 23,873 Aug... 347 249 98 42,663 2,370 40,293 1964............... 3,404 1375 1,528 29,116 029 27,787 Sept... 352 246 106 43,585 2,244 41,341 1965............... 4,359 1,962 2,395 35,220 1,803 33,417 Oct... 409 270 139 42,652 2,218 40,434 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Nov.. 468 231 237 43,262 2,653 40,609 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

A42 BUSINESS FINANCE □ JANUARY 1968 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1965 1966 1967 Industry 1962 1963 1964 1965 1966 IV I II III IV I 11 111 Manufacturing Total (177 corps.): Sales.................................................... 136,545 147,380158,253 177,237 196,136 46,601 47,695 49,850 46,202 52,389 48,585 51,679 48,668 Profits before taxes......................... 15,330 17,337 18,734 22,046 23,420 5,787 6,020 6,460 4,881 6,059 5,153 5,608 4,238 Profits after taxes............................. 8,215 9,138 10,462 12,461 13,244 3,270 3,353 3,643 2,845 3,403 2,918 3,190 2,489 Dividends..................... 5,048 5,444 5,933 6,527 6,920 2,062 1,570 1,754 1,631 1,965 1,670 1,701 n ,721 Nondurable goods industries (78 corps.) :t Sales.................................................... 52,245 55,372 59,770 64,897 73,498 16,697 17,721 18,496 18,297 18,984 18,743 19,535 19,637 Profits before taxes......................... 5,896 6,333 6,881 7,846 9,107 2,017 2,204 2,444 2,305 2,158 2,153 2,250 2,170 Profits after taxes............................ 3,403 3,646 4,121 4,786 5,419 1,251 1,305 1,427 1,389 1,298 1,319 1,343 1 ,327 Dividends.......................................... 2,150 2,265 2,408 2,527 2,729 707 651 682 673 723 720 756 r770 Durable goods industries (99 corps.):2 Sales.................................................... 84,300 92,008 98,482112,341 122,638 29,904 29,974 31,354 27,905 33,405 29,842 32,144 29,051 Profits before taxes......................... 9,434 11,004 11,853 14,200 14,313 3,770 3,815 4,020 2,577 3,901 3,000 3,358 2,068 Profits after taxes............................ 4,812 5,492 6,341 7,675 7,824 2,019 2,047 2,216 1,456 2,105 1 ,599 1,847 1,162 Dividends.......................................... 2,898 3,179 3,525 4,000 4,191 1,356 919 1,072 958 1,242 950 '945 952 Selected industries: Foods and kindred products (25 corps.): Sales.................................................... 13,457 14,301 15,284 16,427 18,932 4,217 4,595 4,673 4,759 4,905 4,963 5,060 5,173 Profits before taxes......................... 1,460 1,546 1,579 1,710 1,912 439 439 488 504 481 447 482 527 Profits after taxes............................ 698 747 802 896 1,006 237 230 257 262 257 236 253 275 Dividends.................................. 425 448 481 509 564 133 137 142 139 146 148 144 146 Chemical and allied products (20 corps.): Sales.................................................... 13,759 14,623 16,469 18,158 19,998 4,656 4,885 5,216 4,824 5,063 4,998 5,163 5,116 Profits before taxes......................... 2,162 2,286 2,597 2,891 3,073 707 760 874 789 650 694 700 641 Profits after taxes............................ 1,126 1,182 1,400 1,630 1,737 409 428 480 443 386 396 404 370 Dividends.......................................... 868 904 924 926 948 285 221 224 234 269 238 235 235 Petroleum refining (16 corps.): Sales................................................... 15,106 16,043 16,589 17,828 20,844 4,504 4,945 5,114 5,298 5,487 5,390 5,808 5,885 Profits before taxes........................ 1,319 1,487 1,560 1,962 2,619 522 656 668 631 664 684 741 701 Profits after taxes............................ 1,099 1,204 1,309 1,541 1,846 400 457 467 479 443 505 504 510 Dividends.................................. 566 608 672 737 817 196 200 204 204 209 232 280 r286 Primary metals and products (34 corps.): Sales................................................... 21,260 22,116 24,195 26,548 28,572 6,167 6,567 7,457 7,309 7,239 6,801 7,040 6,975 Profits before taxes......................... 1,838 2,178 2,556 2,931 3,277 623 682 928 857 810 693 670 518 Profits after taxes............................ 1,013 1,183 1,475 1,689 1,903 373 402 537 490 474 395 411 309 Dividends.............. 820 734 763 818 924 221 216 218 230 260 222 214 228 Machinery (24 corps.): Sales.................................................... 19,057 21,144 22,558 25,364 30,141 6,785 6,985 6,889 7,538 8,729 7,704 7,933 8,090 Profits before taxes......................... 1,924 2,394 2,704 3,107 3,613 788 894 915 851 953 868 807 837 Profits after taxes............................ 966 1,177 1,372 1,626 1,880 410 456 480 444 500 421 417 438 Dividends.......................................... 531 577 673 774 912 207 217 225 226 244 232 233 227 Automobiles and equipment (14 corps.): Sales................................................... 29,156 32,927 35,338 42,712 43,641 12,033 11,718 11,728 8,046 12,149 10,413 11,875 8,334 Profits before taxes......................... 4,337 5,004 4,989 6,253 5,273 1,797 1,779 1,615 313 1,566 1,050 1,436 217 Profits after taxes............................ 2,143 2,387 2,626 3,294 2,866 923 934 893 224 815 583 782 142 Dividends.......................................... 1,151 1,447 1,629 1,890 1,775 759 360 503 361 551 363 365 362 Public utility Railroad: Operating revenue.......................... 9,440 9,560 9,778 10,208 10,654 2,668 2,518 2,728 2,690 2,718 2,536 2,628 2,529 Profits before taxes......................... 729 816 829 980 1,088 328 213 327 280 268 145 163 n.a. Profits after taxes............................ 572 651 694 816 902 276 172 259 227 244 121 143 n.a. Dividends.......................................... 367 383 438 468 496 161 113 109 113 161 124 156 n.a. Electric power: Operating revenue.......................... 13,489 14,294 15,156 15,816 16,908 3,997 4,401 4,026 4,236 4,246 4,697 4,280 4,406 Profits before taxes......................... 3,583 3,735 3,926 4,213 4,395 1,000 1,215 987 1,153 1,041 1,279 1,026 1,161 Profits after taxes............................ 2,062 2,187 2,375 2,586 2,764 637 758 632 702 673 799 666 717 Dividends.................................... 1,462 1,567 1,682 1,838 1,932 577 473 486 475 505 518 510 509 Telephone: Operating revenue.......................... 9,196 9,796 10,550 11,320 12,420 2,944 2,992 3,091 3,135 3,202 3,229 .1,312 3,341 Profits before taxes......................... 2,639 2,815 3,069 3,185 3,537 806 851 907 911 868 869 923 953 Profits after taxes.......................... 1,327 1,417 1,590 1,718 1,903 432 460 488 487 468 472 497 515 Dividends.......................................... 935 988 1,065 1,153 1,248 296 302 309 317 320 334 337 341 i 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

JANUARY 1968 □ BUSINESS FINANCE A-43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t r e a o f x o f e i r s t e s c ta o In x m e ­ e s P t a r a f o x t f e e i r t s s d C d e i a n v s d i h ­ s t U r p i r b n o u d fi t i t e s s d ­ co c a n a t l s i p l o o u i n w t m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o In x m e ­ e s P t a r a 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 t a l i s p l 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 1966—1. .. . 83.7 34.5 49.2 21.4 27.8 38.3 1960............... 49.7 23.0 26.7 13.4 13.2 24.9 II.... 83.6 34.5 49.2 21.6 27.6 38.7 III... 84.0 34.6 49.4 21.6 27.8 39.2 1961................ 50.3 23.1 27.2 13.8 13.5 26.2 IV... 83.9 34.6 49.3 21.2 28.2 39.8 1962............... 55.4 24.2 31,2 15.2 16.0 30.1 1963................ 59.4 26.3 33.1 16.5 16.6 31.8 1967—1. ... 79.0 32.5 46.5 22.2 24.2 40.3 1964................ 66.8 28.3 38.4 17.8 20.6 33.9 II.. . 78.9 32.5 46.5 23.1 23.4 40.9 1965................ 76.6 31.4 45.2 19.8 25.4 36.5 III... 80.0 32.9 47.1 23.4 23.6 41.8 1966............... 83.8 34.5 49.3 21.5 27.8 39.0 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts, Notes and accts, End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i , ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1961................................. 148.8 304.6 40.7 19.2 3.4 133.3 95.2 12.9 155.8 1.8 110.0 14.2 29.8 1962................................. 155.6 326.5 43.7 19.6 3.7 144.2 100.7 14.7 170.9 2.0 119.1 15.2 34.5 1963................................ 163.5 351.7 46.5 20.2 3.6 156.8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964r.............................. 170.0 372.2 47.3 18.6 3.4 169.9 113.5 19.6 202.2 2.7 140.3 17,0 42,2 1965r.............................. 180.1 406.6 49.7 16.5 3.9 187.9 125.7 22.9 226.5 3.1 158.0 18,8 46.6 1966—Ir......................... 182.7 412,1 47.3 16.7 3.9 190.8 129.2 24.3 229.3 3.3 158,3 18,9 48.8 IP....................... 187.1 421.8 48.1 15.0 4.0 196.7 133.4 24,6 234.7 3.5 164,0 16,5 50.8 HP..................... 188.0 429.5 47.3 14.3 4.2 201.1 138.3 24.4 241.5 4.0 167.8 17,7 52,1 lVr..................... 189.4 439.6 49.8 15.2 4.5 202.6 143.2 24.2 250.2 4.4 173.7 18.8 53.3 1967—p......................... 191.7 440,2 46.9 14.1 4.4 202.6 146.8 25.4 248.5 4.9 171,2 18.4 54.1 IP....................... 192.8 441,1 47.4 11.3 4.6 204.9 147.9 24.9 248.2 5.4 174.6 12.5 55.7 Ill....................... 196.3 448.9 48.8 10.6 4.7 208.9 149.9 26.0 252.6 5.7 176,1 13.3 57.4 * Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations* books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n b ­ le Mining Railroad Other u P t u il b it l i i e c s n C i o c m at m ion u s ­ Other 1 a ( r n S a n . t u A e a ) . l 1959............................................. 32,54 5.77 6.29 .99 .92 2,02 5.67 2.67 8.21 I960 ...................................... 35.68 7.18 7.30 .99 1.03 1.94 5.68 3,13 8.44 1961............................................. 34.37 6,27 7.40 .98 .67 1.85 5.52 3.22 8.46 1962............................................ 37.31 7.03 7.65 1.08 .85 2.07 5.48 3,63 9.52 1963 .................................. 39.22 7.85 7.84 1.04 1.10 1.92 5.65 3.79 10.03 1964 ........................................ 44.90 9.43 9.16 1.19 1.41 2.38 6.22 4.30 10.83 1965 .................................. 51,96 11.40 11.05 1.30 1.73 2.81 6.94 4,94 11.79 1966 .......................................... 60.63 13.99 13.00 1.47 1.98 3.44 8.41 5.62 12.74 19672 .. . 61.48 13.78 13.07 1.43 1.55 3,88 9.59 18.20 1966—1....................................... 12.77 2.87 2.74 .33 .40 .75 1.60 1,26 2.83 58.00 ..................................... 15.29 3.51 3.27 .40 .55 1.00 2.09 1.42 3.06 60.10 ................................... 15.57 3.54 3.30 .37 .48 .82 2.36 1.36 3.33 61.25 IV.................................... 17.00 4.07 3.68 .38 ,55 .86 2.36 1.58 3.52 62.80 1967—1....................................... 13.59 3.08 3.02 .32 .41 .70 1,84 1.35 2.87 61.65 ..................................... 15.61 3.46 3.34 .34 .41 1.12 2.46 1.49 2.99 61.50 in................................... 15.40 3.33 3.15 .37 .35 .98 2.66 1.46 3.09 60.90 IV2.................................. 16.87 3.90 3.55 .40 .37 1.08 2.63 4.95 62.05 4?22 1968—12.................................... 14.32 3.17 2.90 .37 .34 1.10 2.22 65.05 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

A44 REAL ESTATE CREDIT □ JANUARY 1968 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm End of Finan­ ho O l t d h e e r r s 2 Finan­ 1 - to 4-family houses * com M m u e l r t c i i f a a l m p i r ly o p a e n r d t ies3 M t o y r p t e g a e ge period All cial All cial Other All h e o r ld s ­ tu in ti s o t n i­ s 1 a U c g i . e e S n s . ­ v o I i t a d n h n u d e d a i r ­ l s s h e o r l s d­ tu i t n i s o t n i­ s 1 h e o r l s d 3 ­ h e o r l s d­ Total t F u in t in i s o a t n i n ­ s , i O h e o t r h l s d e ­ r Total t F u in t in i s o a t n i n ­ s , > O h e o t r h l s d e ­ r w u F V n r H i d A t A t e e - r - n ­ t C i v o e o n n n a ­ ­ l 1941............ 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3 0 28 2 1945............ 35.5 21,0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4^7 43 26 5 1961............ 226.3 172.6 11.8 41.9 13.9 5.0 8.9 212.4 153,1 128.2 24.9 59.3 39.4 19.9 65 5 146 9 1962............ 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............ 362.3 264.6 12.4 49.3 21.2 7.8 13.4 305.1 213,7 185.1 28.6 91.4 71.7 19.7 81 2 223.9 1966”.......... 347.3 280.8 15.7 50.8 23.3 8.4 14.9 324.0 224,1 192.6 31.4 99.9 79.7 20.2 84 0 240 0 1965—III.. 319.5 258.7 11.9 49.0 20.7 7.6 13.1 298.8 209.6 181.5 28.0 89.3 69.5 19.7 80.0 218.8 IV... 326.3 264.6 12.4 49.3 21,2 7.8 13.4 305.1 213.7 185.1 28.6 91.4 71.7 19.7 81.2 223.9 1966—1»... 332.3 269.6 13.5 49.2 21.8 8.0 13.7 310.5 216.9 187.8 29.1 93.8 73.8 19.9 82.1 228.4 IP.. 338.8 274.7 14.4 49.7 22.5 8.2 14.2 316.3 220.2 190.4 29.9 96.1 76.1 20.0 82.6 233.7 IIP.. 343.5 278.2 15.2 50.2 23.0 8.4 14.6 320.5 222,4 191.7 30.7 98.2 78.1 20.1 83.4 237.1 IV”.. 347.3 280.8 15.7 50.8 23.3 8.4 14.9 324.0 224.1 192.6 31.4 99.9 79.7 20.2 84.0 240.0 1967—I”... 350.7 283.2 16.4 51.1 23.7 8.5 15.2 327.0 225.5 193.4 32.0 101.5 81.2 20.3 84.4 242.6 IP.. 356.2 287,9 16.7 51.6 24.2 8.7 15.5 332.0 228.3 195.9 32.4 103.7 83.3 20.4 85.3 246.7 III”.. 362.4 292.9 17.4 52,1 24.6 8.9 15.8 337.8 232.1 198.8 33.3 105.7 85.3 20.4 86.4 251.4 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.** Admim, 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, 4 For multifamily and total residential properties, see p. A46. of Commerce of end-of-year figures on multifamily and commercial 3Derived figures; includes small amounts of farm loans held by properties back to 1962. savings and loan assns. Figures for first 3 quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Total Total FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ O n fa t o r h n m e ­ r Farm Total Total F i H n A ­ - g V u A ar - ­ C ve o n n ­ ­ O n fa t o r h n m e ­ r Farm sured anteed tional sured anteed tional 1941 .............................. 4,906 3,292 1,048 566 4,812 3,884 900 28 1945 ............................ 4,772 3,395 '856 521 4,208 3'387 797 24 1961.................................. 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,029 2,753 51 1962................................. 34.476 23,482 6,520 2,654 14,308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1963................................. 39,414 26,476 7,105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11,544 3,454 52 1964................................. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965.................................. 491675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966................................. 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1965—HI........................ 48,353 31,574 7,641 2,700 21,233 13,926 2,853 43,539 39,153 13,412 11,368 14,373 4,334 52 IV......................... 491675 32,387 7,702 21688 21,997 14,377 2,911 44,617 40,096 13,791 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 2,654 23,377 15,478 3,028 45,883 41,083 14,047 11,346 15,690 4,747 53 ni........................ 531606 34,469 7,687 2,620 24,162 16,028 3,109 46,622 41,673 14,274 11,413 15,986 4,896 53 IV......................... 54.380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967—1............................ 54,531 34,890 7,444 2,547 24,899 16,468 3,173 48,107 42,879 14,723 11,619 16,537 5,176 52 II.......................... 55,731 35,487 7,396 2,495 25,596 17,970 3,274 48,893 43,526 14,947 11,768 16,811 5,316 51 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

JANUARY 1968 □ REAL ESTATE CREDIT A-45 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H ur A e - d a g V n u t A a ee r - d ­ Other 1 Fann 1 Total Total in F s H ur A e - d a g V n u t A a e r e - ­ 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 24,813 3,170 1962................................................... 7,478 6,839 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 1i.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—Oct,*..................................... 722 678 85 40 553 44 63,917 58,685 12,332 6,196 40,157 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 6,183 42,307 5,329 June...................................... 643 569 60 31 478 74 66,414 61,038 12,397 6,163 42,478 5,376 July....................................... 563 506 36 27 443 57 66,324 60,920 12,311 6,161 42,448 5,404 Aug.,.................................... 676 618 68 32 518 58 66,506 61,073 12,289 6,144 42,640 5,433 Sept....................................... 688 631 62 36 533 57 66,701 61,239 12,263 6,131 42,845 5,462 Oct.................................... 675 623 68 40 515 52 66,884 61,401 12,236 6,124 43,041 5,483 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because (1) 1959 and with “other” nonfarm thereafter. These loans totaled 538 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) period Ad­ Repay­ Members’ New vances ments deposits 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 t S e h r o m r t­ 1 t L er o m 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......................... 4,111 3,294 3,479 2,005 1,474 1,213 1 1 1 1 9 9 9 9 6 6 6 6 1 4 3 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 2 4 4 7 0 , , , , 5 7 3 7 0 3 6 5 5 5 4 4 5 7 5 6 , , , ‘, 0 0 5 9 8 1 3 7 1 5 9 9 1 7 9 8 0 . , , ‘, 2 9 3 5 0 2 9 2 7 7 0 4 1 6 7 9 0 8 8 0 1 , , . , 8 3 7 9 3 3 7 4 3 4 0 4 4 4 4 4 . , , , 1 4 8 6 6 7 9 9 7 6 4 6 7 7 6 6 , , , , 6 0 1 9 8 1 5 6 3 0 2 0 5 7 8 6 7 9 9 7 , , , , 5 2 7 2 1 8 5 8 5 8 6 4 1 1 1 1 9 9 9 9 6 6 6 6 3 4 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 < 3 , , , 0 6 5 8 0 0 6 0 1 5 7 4 4 2 5 4 1 , , , 2 8 3 0 9 3 6 2 6 5 5 6 4 5 5 6 , , , ' 3 7 9 9 2 8 3 9 5 4 5 7 2 2 5 3 , , ' , 8 8 , 0 0 6 4 0 7 3 6 6 4 2 2 1 1 , , , , 4 9 9 9 7 2 2 2 1 9 3 9 1 1 1 1 1 , , , 1 1 0 0 5 9 3 4 1 9 6 3 1 19 9 6 6 6 5 . . . . . . . . . . . . . . . . . . . . . . 2 1 3 6 , , 8 7 4 2 7 0 5 3 , , 9 6 2 0 2 6 1 7 0 , , 7 69 4 7 6 1 1 1 1 4 0 , , 4 3 4 0 7 6 5 5 , , 1 2 4 7 5 0 6 6 , , 3 1 9 5 8 8 1 9 0 8 3 , , 7 0 6 1 3 9 1966—N De o c v .. . .. . . . .. . .. . .. . .. . . 1 6 0 8 4 2 21 6 7 9 7 6 , , 0 93 8 5 4 4 51 ,9 0 9 0 3 6 2 1 , , 0 9 9 2 1 9 1,0 8 3 63 6 1966- D N e o c v .. . 8 93 6 5 6 1 1 8 8 5 9 4 4 2 2 3 2 1 1 1 1 4 4 , , 3 4 4 4 3 7 5 5 , , 2 2 6 7 1 0 6 6, , 1 1 5 7 8 4 1 1 0 0 2 3 , , 9 0 0 1 8 9 1967—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 49 4 8 5 1 8 8 9 6 5 , , 3 8 4 0 0 0 4 4 , , 8 7 1 3 4 0 1 1 1 ,5 0 2 7 6 0 1 1 1 ,0 2 8 4 8 0 1967-J J J F M A M A a u u e u p n a a l n b y g r r . y e . . . . . , . . . . . . . 2 2 1 1 1 1 , , , , , , 1 2 3 7 3 8 7 9 4 6 3 2 3 6 8 5 7 8 2 8 9 8 0 0 2 4 4 1 3 3 3 4 0 0 3 6 0 1 8 2 5 5 0 5 6 2 2 4 1 1 , , 0 1 4 7 9 5 3 5 4 5 7 2 8 7 6 8 1 1 5 0 6 9 6 6 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 4 5 5 6 7 8 , , , , , , , , 3 7 2 9 2 6 6 9 9 9 2 0 3 7 7 4 5 7 3 9 9 6 4 4 5 5 5 5 5 5 5 5 , , , , , , , , 2 3 3 2 2 4 3 5 2 7 6 7 9 3 8 1 1 7 5 8 6 7 4 4 6 6 6 6 6 6 6 6 , , , , , , , , 1 1 1 1 1 1 2 1 4 4 4 2 2 6 8 4 1 1 3 3 9 7 7 4 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 3 4 3 5 2 2 6 6 , , , , , , , , 3 7 3 4 8 9 9 0 7 9 5 1 3 0 7 5 1 1 8 7 7 8 6 2 J A M J S O M A u u e p u c a p n a l r t g y r t . e y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 5 5 3 0 3 8 9 6 9 9 3 4 2 0 9 0 4 4 6 2 2 2 1 1 5 2 5 0 0 7 3 6 5 2 0 8 2 3 9 4 5 4 4 4 4 4 4 4 1 1 , , , , , , 2 4 1 7 1 1 1 3 2 2 7 8 2 1 5 0 1 1 5 2 3 2 4 2 3 3 4 3 3 3 3 3 1 1 1 1 , , , , 6 7 6 2 6 9 6 6 8 7 4 6 5 7 9 8 1 6 2 9 2 6 0 6 '9 8 6 4 4 4 6 5 1 3 4 0 4 9 8 0 3 1 3 6 4 4 0 6 1 1 1 1 1 j 1 1 1 , , , , , ’, 5 8 9 3 4 3 6 3 2 3 2 2 9 1 4 4 1 1 5 3 7 0 3 8 Sept.. 1,971 381 1,017 119,529 5,576 6,258 107,695 Nov............. 176 102 4,188 3,793 395 1,347 Oct.. 1,950 413 949 120,362 5,660 6,292 108,410 Nov.. 1,802 388 857 121,118 5,711 6,336 109,071 1 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., 1 year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-46 REAL ESTATE CREDIT □ JANUARY 1968 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON (In millions of dollars) NON-FARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) FHA-insured VA-guaranteed Government- Period Total h N o M m ew e o s rtga h i g s o E t e m i x s n ­ e g s e P c r t o s j­ 1 m p P e r e i r m r o n o t v t y p ­ s e ­ ­ 2 Total 3 h N o M m ew e o s rtga h i g s o E t e m i x s n ­ e g s E pe n r d io o d f Total Tota u l nd s F e u i H r n r w e ­ A d r - it t a e g n n V u te A a e r - d ­ i t C i v o e o n n n a ­ ­ l 1945............................... 665 257 217 20 171 192 1945 ................. 18.6 4.3 4.1 .2 14.3 1961............................... 6,546 1,783 2,982 926 855 1,829 1,170 656 1961................. 153.1 59.1 29.5 29.6 93.9 1962............................... 7'184 1,849 3,421 1,079 834 2,652 1,357 1,292 1962................. 166.5 62.2 32.3 29.9 104.3 1963............................... 7'216 1,664 3 >05 843 804 3,045 L272 1,770 1963................. 182.2 65.9 35.0 30.9 116.3 1964............................... 8'130 1,608 4,965 895 663 2,846 1,023 1,821 1964................. 197.6 69.2 38.3 30.9 128.3 1965............................. 8'689 1,705 5,760 591 634 2,652 '876 1,774 1965.................. 213.7 73.1 42.0 31.1 140 6 1966............................... 7'320 1,729 4'366 583 641 2,600 980 1,618 1966.................. 224.1 76 0 44 8 31.2 148 1 1966—Nov................... 446 130 238 26 51 247 110 137 1964—I........... 185.4 66.6 35.7 31.0 118.8 Dec.................... 409 113 214 35 46 226 104 121 II.......... 189.8 67.3 36.3 30.9 122.5 in 193.9 68.4 37.4 31.1 125.4 1967—Jan..................... 449 116 263 26 44 214 100 113 IV......... 197.6 69.2 38.3 30.9 128.3 Feb.................... 364 91 210 32 31 169 77 91 Mar................... 490 96 292 55 47 195 83 112 1965—1............ 200.7 70.1 39.0 31.1 130,6 Apr.................... 440 89 270 41 40 184 70 114 II........... 205.1 70.7 39.7 31.0 134.4 May................... 508 87 320 44 58 231 76 154 Ill......... 209.6 72.0 40.9 31.1 137.5 June.................. 626 105 403 57 61 266 81 185 IV......... 213.7 73.1 42.0 31.1 140.6 July................... 595 103 399 36 58 296 82 214 Aug................... 762 129 525 45 62 340 97 243 1966—1............ 216.9 74.1 43.0 31.1 142.7 Sept................... 758 129 514 58 56 352 101 251 II........... 220.2 74.6 43.7 30.9 145.7 Oct..................... 817 150 515 88 64 434 125 310 Ill......... 222,4 75.4 44.4 31.0 147.0 Nov................... *746 149 471 72 53 383 127 255 IV......... 224.1 76.0 44.8 31.2 148.1 1967—P......... 225.5 76.4 45.2 31.2 149.0 i Monthly figures do not reflect mortgage amendments included in annual totals. IP........ 228.3 77.2 45.7 31.5 151.1 2 Not ordinarily secured by mortgages. IIP.... 232.1 78.3 46.6 31.7 153.8 3 Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. 1 Includes outstanding amount of VA vendee Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans accounts held by private investors under repurchase represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans agreement. closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on Note.—For total debt outstanding, figures are number and average amount of loans closed. FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank Board, Federal Housing Admin., and Veterans Admin. FEDERAL NATIONAL MORTGAGE ASSOCIATION MORTGAGE DEBT OUTSTANDING ACTIVITY ON RESIDENTIAL PROPERTIES (In millions of dollars) (In billions of dollars) Mortgage holdings Mortgage All residential Multifamily 1 transactions Com­ (during mit­ End of End of period) ments period Finan­ Finan­ period Total F su H in re A ­ d - a g n V u t A a ee r - d ­ Pur­ Sales bu d u r i n s s ­ e ­ d Total tu in c t i i s a o t l n i ­ s h O ol t d h e e r r s Total tu in c t i i s a o t l n i ­ s h O ol t d h e e r r s chases 1941................. 24.2 14.9 9.4 5.8 3.6 2.2 1961............................. 6,093 3,490 2,603 815 541 631 1945................. 24.3 15.7 8.6 5.7 3.5 2.2 1962............................. 5'923 31571 2,353 740 498 355 1963............................. 4 >50 31017 11634 290 1,114 191 1961................. 176.0 143.0 33.0 23.0 14.8 8.2 1964............................. 4,412 2,996 11416 424 251 313 1962................. 192.5 157.9 34.6 25.8 17.5 8.3 1965............................. 4'731 31404 1,327 913 200 793 1963................. 211.2 176.7 34.5 29.0 20.7 8.3 1966............................. 7’063 51407 1,656 2,701 705 1964................. 230.8 195.2 35.6 33.2 24.8 8.4 1966—Nov................. 6,891 5,272 1,619 188 617 1965................. 250.7 213.7 37.0 37.0 28.5 8.5 Dec.................. 7 >63 51407 1,656 202 705 196671............... 263.6 223.5 40.1 39.5 30.9 8.6 1967—Jan................... 7,216 5.522 1,694 181 695 1965—I........... 234.7 199.0 35.8 34.0 25.6 8.4 Feb................... 7,331 5,615 1,716 144 641 H......... 240.1 204.0 36.1 34.9 26.6 8.3 Mar................. 71415 51692 11723 119 706 III.. 245.5 209.1 36.4 36.0 27.6 8.4 Apr.................. 71461 51740 1 ',721 78 744 IV.... 250.7 213.7 37.0 37.0 28.5 8.5 May................. 7,484 51767 1,717 65 835 June................. 71524 5,811 1,713 88 6 1,104 1966—I®......... 254.7 217.0 37.7 37.8 29.3 8.5 July.................. 71624 51890 11734 136 1>33 IP.... 258.8 220.3 38.5 38.5 29.9 8.6 Aug................. 7',872 6,076 11796 291 1 1'447 IIP... 261.5 222.1 39.4 39.1 30,5 8.6 Sept................. 8J05 6>49 1,856 272 1,473 IV”.... 263.6 223.5 40.1 39.5 30.9 8.6 8,371 6,441 1,930 307 1,535 Nov................. 8,610 6,615 1,995 279 .....1..,.6...7..6 1967—P......... 265.7 224.9 40.8 40.2 31.5 8.7 IP.. .. 269.4 228.2 41.2 41.0 32.3 8.7 IIP. .. 273.9 231.8 42.1 41.8 33.0 8.8 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

JANUARY 1968 □ REAL ESTATE CREDIT A-47 TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t n c 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 t a u r r s i ) ty L c r p ( o e p a r n a t e ic i t r n o e ) / (t d h c o p P o h l r u u l a a i s r c s r . ­ e e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t n c t e r ) t ­ c F c h e e ( a p n e r e s t g r ) e & 1 s M (y a e t a u r r s i ) ty L c r p ( e o a p r n a t i e i c t n r o e ) / (t d h c o p P o h l r u u l a a i s r c s r . ­ e e s o ) f (t d a h L m o o l o u l o a a s u . r n n s o ) t f 1963......................... 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19,2 70.8 17.« 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 —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- Jail........ 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 .83 24.0 74.3 27.3 20.3 6.38 .71 21,5 73.1 22.7 16.6 Sept.............. 6.37 .83 24.2 73.6 27.5 20.2 6.37 .72 21.2 72,8 22.3 16.2 Oct............... 6.37 .89 24.3 74.0 27.5 20.4 6.42 .77 21.2 72.7 22.3 16.2 Nov.p...... 6.37 .78 24.2 73.7 27.9 20.6 6.42 .73 21.5 72.7 23.5 17.1 i 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. A-30. based on probability sample survey of characteristics of mortgages DELINQUENCY RATES ON HOME MORTGAGES NONFARM MORTGAGE FORECLOSURES (Per 100 mortgages held or serviced) Rate L b o u a t n d s e n li o n t q i u n e n fo t r f e o c r lo — sure Loans in Period (th N o u u m sa b n e d r s ) ( m pe o r r t c g e a n g t e o d f structures) End of period fore­ closure Toial 30 days 60 days o 9 r 0 m da o y r s e 1961............................................. 73.1 .37 1962............................................. 86.4 .42 1963............................................. 98.2 .45 1961................... 3.10 2,27 .50 .33 .29 1962............................ 3.04 2.26 .50 .29 .30 1964............................................. 108.6 .48 1963............................ 3.30 2.32 .60 .38 .34 1965............................................. 116.7 .49 1964............................ 3.21 2.35 .55 .31 .38 1966............................................. 117.5 .48 1965............................ 3.29 2.40 .55 .34 .40 1966............................ 3.40 2.54 .54 .32 .36 1965—1...................................... 27.9 .48 H..................................... 30.1 .52 1965—J...................... 2.94 2.06 .54 .34 .37 HI................................... 29.1 .50 H..................... 3,00 2.18 .52 .30 .38 IV.................................... 29.6 .50 in................... 3.20 2.30 .56 .34 .38 iv.......... 3,29 2.40 .55 .34 .40 1966—1...................................... 28.8 .48 II..................................... 30.8 .51 1966—1...................... 3.02 2.13 .55 .34 .38 HI. ................................. 29.3 .48 n........... 2.95 2.16 .49 .30 .38 IV.................................... 28.6 .46 in.................... 3.09 2.25 .52 .32 .36 iv................. 3.40 2.54 .54 .32 .36 1967—1....................................... 29.5 .48 II..................................... 29.7 .48 1967—I..................... 3.04 2.17 .56 .31 .38 Ill................................... 29.2 .47 ii 2.85 2.14 .45 .26 .34 Ill................... 3.15 2.36 .52 .27 .31 Note.—Federal Home Loan Bank Board estimates of number of nonfarm mortgaged structures at end of period and of non­ Note.—Mortgage Bankers Association of America data from reports on 1- farm properties acquired during period through foreclosure to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held proceedings (excluding voluntary deeds in lieu of foreclosure and by more than 400 respondents, including mortgage bankers (chiefly), commercial defaults on real estate contracts). Data exclude Alaska and banks, savings banks, and savings and loan associations. Hawaii. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-48 CONSUMER CREDIT □ JANUARY 1968 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e i o l r ­ e co O g p n o a s t o u h p d m e e r r s e r e a r n R n l d o i e a z p m a n a t s o i i r o d 1 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 r n ge ts S c e r r e v d i i c t e 1939............................................. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941............................................. 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945............................................. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 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 4,3)5 1964............................................. 78,442 60,548 25,195 15,593 3,532 16,228 17,894 6,954 6,300 4'640 1965............................................. 87,884 68,565 28,843 17,693 3,675 18,354 19,319 7,682 6,746 4,891 1966............................................. 94,786 74,656 30,961 19,834 3,751 20,110 20,130 7,844 7,144 5,142 1066—Nov................................. 92,498 73,491 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 7,144 5; 142 1967-—Ian................................... 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 Mar............................ 92,519 73,591 30,527 19,369 3,648 20,047 18,928 7,769 5,809 5,'350 Apr.................................. 93,089 73,840 30,635 19,376 3,636 20,193 19,249 7,890 5,923 5; 436 May............................... 93,917 74,290 30,852 19,442 3,670 20,326 19,627 8,017 6,231 5'379 June................................ 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 Sept................................. 95^886 76,039 31,296 19,914 3,742 21,087 19,847 8,179 6,387 5,281 Oct................................. 96,094 76,223 31,237 20,042 3,746 21,198 19,871 8,189 6,471 5,211 Nov.................................. 96,802 76,680 31,217 20,340 3,748 21,375 20,122 8,237 6,614 5,271 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Note.—Consumer credit estimates cover loans to individuals for house- Statistics, 1965, and May 1966 Bulletin. * INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n m c k ia s ­ l fi S n c a a o l n s e . c s e u C n r i e o d n it s fi s C n u a m o n n e c ­ r e 1 Other 1 Total D st m e o p r e a e n s r t t­ 2 F s t t u u o r r r n e e i s ­ A s a t p o n p r c e e li s ­ d m A ea o u l b e t i r o 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 41480 1,726 11797 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................................ 43i527 37,935 17,008 11,273 4,330 3,799 1,525 5,595 2,421 1,058 293 342 1,481 1962................................ 48,034 41,782 19,005 12,194 4,902 4,131 1,550 6,252 3,013 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—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. 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. 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..................... 75348 66,781 33,235 16,747 8,864 6,009 1,926 8,567 n.a. n.a. n.a. 506 n.a. Aug..................... 751889 67,273 33,536 16,755 8,991 6,036 1,955 8,616 n.a. n.a. n.a. 508 n.a. Sept..................... 76,039 67,376 33,637 16,701 9,026 6,067 1,945 8,663 n.a. n.a. n.a. 507 n.a. 76,223 67,513 33,723 16,698 9,054 6,086 1,952 8,710 n.a. n.a. n.a. 506 n.a. Nov..................... 76,680 67,763 33,819 16,722 9,113 6,138 1,971 8,917 n.a. n.a. n.a. 506 n.a. 1 Consumer finance companies included with “other” financial insti- 3 Automobile paper only; other instalment credit held by automobile tutions until 1950. dealers is included with “other” retail outlets. 2 Includes mail-order houses. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ CONSUMER CREDIT A-49 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair Other End of period Total ch P a u s r e ­ p d ape D r irect s g p c u o a o m o p n d e e ­ r s r e m l r o t a n i a n o o i n z d d n a s ­ ­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s O g p c u o a o m t o p h n d e e ­ e r r s r , m R iz l a o o e a n a p d ti n d a e o r s i n r n ­ l s P o o a e n r n a ­ s l 1939........................... 1,079 237 178 166 135 363 1939.................................... 1,197 878 115 148 56 1941........................... 1,726 447 338 309 161 471 1941................................... 1,797 1,363 167 201 66 1945........................... 745 66 143 114 110 312 1945.................................... ’300 164 24 58 54 I960........................... 16,672 5,316 2,820 2,759 2,200 3,577 1960.................................... 11,472 7,528 2,739 139 1 066 1961........................... 17,008 5,391 2,860 2,761 2,198 3,798 1961.................................... 11,273 6’811 3 J00 161 1 201 1962........................... 19,005 6,184 3^51 2,824 2,261 4,285 1962.................................... 12^194 7 449 3323 170 1 *452 1 1 9 9 6 6 3 4 . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . • 2 2 5 2, , 0 0 2 9 3 4 7 8' , , 3 6 8 9 1 1 4 4 , , 1 7 0 3 2 4 3 3' , , 2 6 1 7 3 0 2 2 , , 3 4 7 5 7 7 4 5^ ,9 5 5 4 0 2 1 1 9 9 6 6 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4 , , 5 7 2 6 3 2 8 8 ,7 2 0 2 1 8 3 3 , , 3 8 8 8 3 9 1 1 5 4 8 2 2 1 ’ 7 0 5 3 4 0 1965............................ 29,173 10,310 5,721 4',266 2,543 6’,333 1965................................. 161138 9,241 4,429 123 2*345 1966........................... 32,155 11,370 6,165 5,'101 2,567 6,'952 1966................................... 16,936 9,391 4,829 110 2 606 1966—Nov............. 31,978 11,378 6,157 4,967 2,583 6,893 1966—Nov....................... 16,790 9,395 4,736 110 2 549 Dec................ 32,155 11,370 6,165 5'101 2,567 6,952 Dec....................... 16,936 9,391 41829 HO 2,606 1967—Jan................. 32,033 11,267 6,148 5,176 2,532 6,910 1967—jan........................ 16,814 9,285 4.817 109 2 603 Feb............... 31,'967 11,214 6,121 5^218 2,502 6,912 Feb....................... 16,'696 9,215 4.773 107 2,601 Mar............... 32,068 11,234 6,153 5,'242 2,486 6^953 Mar...................... 16,593 9^139 4,744 105 2,605 Apr............... 32',299 11,256 6.217 5',292 2,478 7,056 Apr....................... 161590 9,128 41749 104 2,609 May............... 32,560 11,313 6,307 5'342 2,489 7’, 109 May...................... 16,615 9,150 4,751 105 2,609 June.............. 32,966 11,414 6,402 5',431 2', 505 7,214 J une...................... 16,721 9,238 4,761 106 2,616 July............... 33'235 11', 489 6', 451 5^500 2,519 7',276 July....................... 161747 9,252 4,752 108 2,635 Aug............... 33^36 111538 6'494 51556 2,'536 7,412 Aug,........... 16,755 91200 4,’781 107 2,667 Sept............... 33,637 11,497 6,490 5,619 2,538 7,493 Sept....................... 16,701 9^079 4’824 107 21691 Oct................ 33,723 11,463 6,515 5^656 2,539 7'550 Oct........................ 16,698 9,024 4,863 107 704 Nov............. 33,819 11,428 6,545 5,696 2,534 7,616 Nov............ 16,722 8'990 4^907 105 2,720 See Note to first table on previous page. See Note to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal 1 1 9 9 3 4 9 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 8 5 9 7 pap 1 e 2 8 r 1 2 g p o a o p d e 2 3 r s 4 6 iz lo a a ti n o 1 1 s n 5 4 loa 6 7 n 6 8 s 9 5 End of period Total b C m c a o i n e a m r k l ­ s ­ t O f u i i n c n t t i i s h a a o t e l n i n ­ r ­ s s m t p D o a e r r e n e t ­ t ­ s 1 o O r u e t t t h l a e e i t r l s c C a r r e d d s i 2 t S c e r r e v d i i c t e 1945.................................... 731 54 20 14 643 I960.................................... 9,074 1,665 771 800 5,837 1939............... 2,719 625 162 236 1,178 518 i96i.................................... 9,654 1,819 743 832 6,257 1941............... 31087 693 152 275 1,370 597 1962.................................... 10,583 2,111 751 815 61906 1945............... 31203 674 72 290 1,322 845 .....1..1..,.8...5..9..........2..,.3...9..4. 835 870 7,760 1960............... 13,196 3,884 623 941 3,952 436 3,360 1964. 13,285 21699 997 933 8,656 1961............... 141151 4,413 723 948 3’907 469 3,691 1965 141962 31124 1,153 1,009 9,676 1962............... 15,130 4,690 766 927 4,252 505 3,990 1966 16,474 3,545 1,303 1,074 10,552 1963............... 16,303 5,205 912 895 4,456 520 4,315 1966- Nov.................. 16,278 3,517 1,287 1,079 10,395 1964............... 171894 5,950 1,004 909 4.756 635 4; 640 Dec....................... 16,'474 3 ,'545 l,'3O3 1,074 10,'552 1965............... 19,319 6,587 1,095 968 5,055 723 4,891 1966............... 20,130 6,714 1,130 n.a. n.a. 874 5,142 1967-—Jan........................ 16,315 3,501 1,291 1,062 10,461 Feb....................... 16,'303 3,'495 1,288 1,057 10,463 1966—Nov... 19,007 6,678 1,129 n.a. n.a. 878 5,001 Mar....................... 161345 3,'515 1,284 11057 10,489 Dec... 20,130 6,714 1,130 n.a. n.a. 874 5,142 Apr....................... 161409 31544 1,283 1,054 10,528 May........... 161558 31588 1,286 1,076 101608 1967—Jan.... 19,464 6,659 1,120 n.a. n.a. 908 5,213 June..................... 161765 3,652 1,291 1,085 10,737 Feb... 18,919 6,634 1,120 n.a. n.a. 895 5,341 July....................... 16,799 3,666 1,294 1,084 10,755 Mar... 18,928 6,647 1,122 n.a, n.a. 898 5,350 Aug............ 161982 31715 1,310 1,100 10,857 Apr... 19,249 6,758 1,132 n.a. n.a. 922 5,436 Sept....................... 171038 3,723 1 1315 1 1097 10,903 May.. 19,627 6,848 1,169 n.a. n.a. 939 5,379 Oct........................ 17,092 3,729 1,319 1,100 10,944 June.. 19,762 6,902 1,175 n.a. n.a. 965 5,351 Nov....................... 17,222 3,748 J ,326 1,109 11,039 July... 19,767 6,927 1,173 n.a. n.a. 1,024 5,321 Aug... 19,795 6,950 1,186 n.a. n.a. 1,057 5,291 Sept... 19,847 6,994 1,185 n.a. n.a. 1,083 5,281 Note.—Institutions represented are consumer finance companies, credit Oct... 19,871 7,001 1,188 n.a. n.a. 1,056 5,211 unions, industrial loan companies, mutual savings banks, savings and Nov... 20,122 7.034 1 ,203 n.a. n.a. 1,046 5,271 loan assns., and other lending institutions holding consumer instalment loans. See also Note to first table on previous page. 1 Includes mail-order houses. 2 Service station and 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

A-50 CONSUMER CREDIT □ JANUARY 1968 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper O g th o e o r d c s o p n a su pe m r er mode R r e n p iz a a ir ti o a n n d l oans Personal loans Period S.A.l N.S.A. S.A.l N.S.A. S.A.l N.S.A. S.A.l N.S.A. S.A.l N.S.A. Extensions 1960. 49,560 17,654 14,470 2,213 15,223 1961............................................. 481396 16,007 14,578 2,068 15 744 1962............................................ 55,126 19,796 15,685 2,051 171594 1963............................................. 61,295 22,292 17,102 2,198 19,703 1964............................................. 67^505 24,435 19373 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--Nov............................. 6,657 6,611 2,461 2,346 1,947 2,044 166 168 2 083 2,053 Dec.................................. 6,433 7,442 2^297 2,178 1,928 2,720 159 140 2 049 2,404 1967--Jan................................... 6,501 5,674 2,240 1,923 2,031 1,808 157 120 2 073 1,823 Feb.................................. 6,497 51488 2’, 177 1,916 2,099 1,655 169 126 2 052 1,791 Mar................................. 6,510 6,641 2-199 2’356 2,049 1,985 169 159 2 093 2 147 Apr.................................. 6^606 6,495 2,217 2,294 2,095 1,927 170 163 2 124 2J11 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 Sept............................... 6,973 6,590 2,’322 2,042 2,234 2,205 166 176 2 251 2 167 Oct.................................. 6,942 6,912 2,321 2^355 2.165 2,215 171 178 2 285 2,164 Nov................................. 7,032 7,032 2,305 2,222 2,242 2,375 180 t78 2 305 2,257 Repayments 1060. 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............................................. 67^95 24,267 19,355 2,096 21,777 1966............................................. 72,805 26,373 21,361 2,060 23,011 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 1,993 167 168 970 1,959 Feb.................................. 6,281 5,905 2,217 2,075 1,915 1,878 176 163 1 973 1,789 Mar................................. 6,246 6,648 2,193 2,353 1,899 2,042 170 177 1 984 2,076 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 Sept................................. 6,689 6,440 2; 280 2,201 2,106 2,046 178 177 2 125 2,016 Oct.................................. 6’631 6,728 2,301 2,414 2,093 2,087 170 174 2 067 2,053 Nov................................. 6,614 6,575 2,240 2,242 2,105 2,077 177 176 2 092 2,080 Net change in credit outstanding 2 1060 3,588 1,270 896 330 1,093 1961 ............................ 696 —465 332 53 '777 1962 ........................ 4,506 2,318 746 55 1,388 1963 ............................ 6,124 2,892 1,252 160 1,820 1964 .......................... 6,384 2,759 1,736 126 1,763 1965 .............................. 8,013 3,647 2,099 142 2,125 1066 _______________ 6,091 2,118 2,141 76 1,756 1966-—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 Sept................................. 284 150 42 -159 128 159 -12 -1 126 151 Oct.................................. 311 184 20 -59 72 128 1 4 218 111 Nov............................... 418 457 65 -20 137 298 3 2 213 177 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, sec “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

JANUARY 1968 □ CONSUMER CREDIT A-51 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p fi a n n a i n es ce Ot i h n e s r ti t f u in ti a o n n c s ial Retail outlets Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions I960............................................ 49,560 18,269 11,456 12,073 7 762 1961............................................ 48'396 17,711 10,667 12382 7*736 1962............................................ 55'126 20^474 11,999 13325 9,128 (963............................................ 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 15375 18,120 12 575 1966............................................ 78'896 31,114 14’951 18,986 13 845 1966—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 2,353 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 2337 2,231 1315 1,032 1,577 1349 1,168 876 Mar................................. 6310 6^641 2,558 2,662 1,199 1,229 1398 1,649 1,155 1,101 Apr,............................... 6,606 61495 2,631 2'688 1,212 1,168 1,589 1,559 1,174 1,080 May................................ 6,554 7,062 2377 2,891 1,193 1,278 1,614 1,728 1,170 1,165 June................................ 6',823 7^458 2,698 3,004 11235 1 367 1 397 1 375 1,193 i 312 July............................... 6'776 6^859 2,738 2,857 r,2oo 1,223 1,601 1,627 1,237 1,152 Aug................................. 6,929 7,223 2396 2,945 1,203 1,260 1 377 1,775 1 353 1 343 Sept................................ 6’973 6390 2,828 2/636 1,206 1,142 1,675 1,588 1 364 1 ’224 Oct........................... 6,942 6,912 2,767 2,769 1,263 1,284 1,686 1,606 1 226 1 253 Nov....................... 7,'032 7,032 2,785 2,633 1,283 1383 1,698 1,707 1,266 1,409 Repayments 1.......... . 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 .......1..3..,..6..1..8... ................... 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—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 ,228 1,467 1,626 1,029 1,077 1967--Jan.................................. 6,221 6,315 2,435 2,470 1,190 ,155 1,500 1,492 ,096 1,198 Feb................................. 6,281 5,905 2,446 2,297 1,188 ,150 1,510 1,361 ,137 1,097 Mar................................ 6,246 6,648 2,412 2,561 1,187 ,332 1,540 1,607 ,107 1,148 Apr................................. 6,393 6,246 2,516 2,457 1,192 ,171 1,536 1 .495 ,149 1,123 May................................ 6,361 6,612 2,483 2,630 1,193 ,253 1,540 1,579 ,145 1,150 June................................ 6,531 6,697 2,548 2,598 1,234 ,261 1,585 1,668 ,164 1,170 July................................ 6,551 6,562 2,562 2,588 1,215 ,197 1,564 1,593 ,210 1,184 Aug................................. 6,585 6,682 2,566 2,644 1,255 ,252 1,578 1,592 ,186 1,194 Sept................................. 6,689 6,440 2,616 2,535 1,252 ,196 1,615 1,532 ,206 1,177 Oct.................................. 6,631 6,728 2,600 2,683 1,249 ,287 1,573 1,552 ,209 1,206 Nov................................ 6,614 6,575 2,579 2,537 1,263 ,259 1,572 1,577 ,200 1 ,202 Net change in credit outstanding 2 1960............................................ 3,588 ................... 1,446 ...........,..1..5..2.. .........1..,..0..5..1.. ................... -61 1961. 696 335 -199 578 -20 1962. 4.506 1,997 921 932 656 1963. 6,124 3,018 ,329 1,276 501 1964. 6,384 3,065 ,239 1,426 654 1965. 8,013 4,075 ,376 1,677 885 1966. 6,091 2,982 798 1,512 799 1966—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 Apr................................. 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 Sept................................ 284 150 212 101 -46 -54 60 56 58 47 Oct.................................. 311 184 167 86 14 -3 113 54 17 47 Nov................................. 418 457 206 96 20 24 126 130 66 207 i Includes adjustments for differences in trading days. payments for some particular holders do not equal the changes in their 2 Net changes in credit outstanding are equal to extensions less repay­ outstanding credit. Such transfers do not affect total instalment credit ments, except in certain months when data for extensions and repayments extended, repaid, or outstanding. have been adjusted to eliminate duplication resulting from large transfers See also Note to previous table. of paper. In those months the differences between extensions and re­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-52 INDUSTRIAL PRODUCTION: S.A. □ JANUARY 1968 MARKET GROUPINGS (1957-59 - 100) 19 p 5 r 7 o - ­ 59 1966 1966 1967 aver­ Grouping p ti o o r n ­ age Nov. Dec, Jan. Feb, Mar. Apr. May June July Aug. Sept. r Oct.r Nov. Total index.......................................... 100.00 156.3 159.1 159.5 158,2 156.6 156,4 156.5 155.6 155.6 156.6 158.1 156.8 156.6 159,3 Final products, total............................. 47.35 155.5 159.0 159.6 158.1 157.0 157.1 157.3 156.3 156.8 157.1 158.2 157.0 156.5 159.6 Consumer goods................................ 32.31 147,5 149.2 149.8 148,0 146.1 146.6 147.1 146.0 146.9 147.1 148.6 147.0 147.4 149.7 Equipment^including defense.... 15.04 172.6 180.0 180.7 179.9 180.3 179.6 179.2 178.5 178.1 178.4 178.9 178.6 176.0 180.9 Materials................................................ 52.65 157.0 159.0 159.2 157,9 155.8 155.5 156.0 154,6 154.9 156.1 157.9 156.7 156.6 159.3 Consumer goods Automotive products.............................. 3.21 163.0 162.8 162.6 147.0 135.7 144.6 151.3 145.8 151.2 155.2 161.1 142.1 145.2 152,8 Autos"............................................. 1.82 169.5 166.7 167.3 141.3 120.5 136.5 149.6 149.9 156.0 160.7 163.7 133,4 135.3 144.5 Auto parts and allied products......... 1.39 154.4 157.8 156,4 154.4 155.7 155.3 153.6 140.5 144.8 148.0 157.8 153.6 158.2 163.8 Home goods and apparel...................... 10.00 153.0 153.4 153.3 152.8 149.5 147.9 145.9 144.1 143.9 144.0 147.9 148.7 149.9 152.7 Home goods........................................... 4.59 168.9 169.4 168,1 168.0 164.1 162.7 158.9 158.5 156.6 157.3 163.4 164.1 166.3 171.2 Appliances, TV, and radios........... 1.81 166.6 166.3 160,2 160.5 156.9 152.9 144.2 143,8 138.6 143.3 155.0 155.9 162.9 168.5 Appliances...................................... 1.33 166.7 162.4 151,9 158.9 154.8 151,3 149.4 147,0 149.7 152,2 153.9 153.7 164.2 168.8 TV and home radios................... .47 166.3 177.4 183.7 164.8 162.9 157.2 129.6 135,0 107.3 118.0 158.3 162.0 159.2 167.6 Furniture and rugs........................... 1.26 165.7 164.7 163.5 163.4 158.5 157.4 157.9 157.2 157.3 156,3 156.9 157.8 159.3 164.0 Miscellaneous home goods............. 1.52 174.3 177,1 181.4 180.7 177.3 178.6 177.1 177.1 177.3 174,8 178.8 179.0 176.1 180.5 Apparel, knit goods, and shoes .... 5 41 139.5 139 8 140 7 139.9 137.1 135 5 135 0 131.9 133.2 132 8 134.8 135.7 136.1 Consumer staples................................... 19.10 142.0 144.8 145.8 145.7 146.1 146.3 147.1 147.0 147.8 147.3 146.9 146.9 146.9 147.5 Processed foods..................................... 8.43 126.4 127.9 130,0 130.4 130,2 129.6 129,6 130,3 130.2 129.0 129.8 129.7 129.5 129.5 Beverages and tobacco........................ 2.43 133.2 134,0 134.6 133.3 135.9 136.0 136.1 133.2 136.5 136.3 137,9 135.8 137.6 Drugs, soap, and toiletries................. 2.97 173.5 180.7 180,1 179.2 180.5 181,2 182.4 182.3 182.7 184.0 178.0 179.8 178.8 182.0 Newspapers’ magazines, and books. 1.47 136.5 138.8 139.1 141.5 142.3 142.3 143.6 142.5 141,4 142.1 140.9 136.2 134.8 136.4 Consumer fuel and lighting................ 3 67 159 9 163 5 164 5 162,9 162,7 164.2 166,6 166.9 169,3 168.3 168.8 170.5 171.2 Fuel oil and gasoline., ”............... 1 ^20 128.5 129.8 129.2 125.5 125.7 128.0 131.9 130.5 135.9 131.3 130.7 138.5 138.2 137.1 Residential utilities........................... 2.46 175,2 180.0 181.7 181.2 180,8 181.9 183.5 184,6 185.6 186.4 187.4 186.0 187.4 Electricity....................................... 1.72 186.6 192.2 194.5 194.4 193.9 195.4 197.3 198.6 199.5 200.4 201.6 199.5 201.4 Gas................................................... 74 148.9 Equipment Business equipment................................ 11.63 181.2 187.8 188,9 186.9 186.6 184.4 183.5 182.1 181.3 180.8 180.6 179.8 176.5 182.7 Industrial equipment............................ 6 85 172 3 178.1 179 1 177.3 176 8 174.1 172.1 169,1 169.0 169,0 166.8 166.6 162.3 168.8 Commercial equipment........................ 2.42 190.1 198.4 196,0 196.7 199.8 199,1 201.7 200.8 200.5 201.1 201.9 200.3 199.0 201.2 Freight and passenger equipment. .. 1.76 208.3 216.9 220.3 214.5 215.0 211.7 210.4 211.7 208.9 210.2 214.1 210.4 210.0 223.4 Farm equipment.................................... 61 167.5 170.7 179.5 176.1 162.6 162.8 161.5 167.6 162.8 148.6 154.3 158.5 157.4 Defense equipment................................ 3.41 Materials Durable goods materials...................... 26 73 156,9 157 8 156,8 154.2 151 3 151,5 151.0 149.7 148.9 149.7 151.8 148.5 148 9 152.2 Consumer durable................................ 3^43 166 5 166*9 158 3 148.6 142,8 139.5 137.5 143.7 143.3 141.8 142.7 134.9 133,3 143.4 Equipment.............................................. 7 84 180,7 191 0 190 3 190.6 186.5 185.6 183.2 180.9 179.6 181.2 186.3 184.7 184 1 186.1 Construction.......................................... 9 17 141 7 138 7 139 9 138 9 139 2 139 7 139,2 137.1 137,2 138.1 139.0 140^0 139.1 141 0 Metal materials n.e.c..................... 6,79 144 3 139*7 139*7 139 7 140 3 135,6 133 9 130.0 130.1 132.4 129.8 125 i 128 5 132 1 Nondurable materials............... 25+92 157 2 160.2 161 6 161 6 160 4 159 7 161 1 159 6 161 1 162 6 164.2 165 2 165 2 166 5 Business supplies.................................. 9 11 149 0 150 8 152*8 152*6 151 *0 150.0 153 4 150.1 151.3 150 9 151.7 153 1 1518 153 3 Containers.......................................... 3 03 145 6 147*2 15 U1 146 6 147,1 144.6 148.5 146.2 145.1 141.7 143.0 150 4 153 7 152.8 General business supplies............... 6 07 150^6 152.6 153 7 155 6 153 0 152 7 155 8 152 0 154.4 155 5 156.0 154 5 150 8 153 6 Nondurable materials n.e.c................. 7 40 193*4 198 7 199*5 199*7 198 2 197.1 195 7 196 0 196.1 195 8 198.9 203 0 206*3 208 2 Business fuel and power..................... 136.6 139 0 140 3 140 4 139 6 139 8 141 3 140 3 143 0 147.7 149.1 147 3 145 8 146 5 Mineral fuels...................................... 122.5 123.9 125^9 125*0 123^6 123*2 125 3 124* 3 128^2 135 i 137.1 133 4 129 2 130.3 Nonresidential utilities.................... 2.86 172 9 177 3 177 5 180 0 180.2 181 9 182.1 18L0 181.1 182,1 182.5 183 8 187 9 Electricity....................................... 2.32 174 4 178*9 179 0 181 8 181.7 184 0 184 4 183.2 183 4 184.6 185.1 186 6 191 6 General industrial.................... 1 03 171*7 176*7 177 1 1788 178 3 178 9 179’6 180 5 180.6 182.9 183.9 185 5 186*6 Commercial and other............ 188.6 188.4 192.4 192.8 196,6 197,3 193.7 194.1 194,5 194.5 196 J 204*9 Gas................................................... .54 166 1 Supplementary groups of consumer goods Automotive and home goods............. 7.80 166,5 166.7 165.8 159.3 152.4 155.2 155.8 153.3 154.3 156.4 162.5 155.0 157.6 163.6 Apparel and staples.............................. 24.51 141.4 143.7 144.7 144.4 144.1 143.9 144.4 143.7 144.6 144.1 144.2 144.4 144,5 ........... For footnotes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ INDUSTRIAL PRODUCTION: S.A. A-53 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1966 1967 Grouping pro­ 1966 por­ aver­ tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index......................................... 100.00 156.3 159.1 159.5 158,2 156.6 156.4 156.5 155.6 155.6 156.6 158.1 156.8 156.6 159.3 Manufacturing, total............................. 86.45 158.6 161.5 161.7 160.1 158.5 158.2 158.2 157.2 157.0 157.6 159.4 158.1 158.1 160.9 Durable............................................. 48.07 164.8 167.7 167.7 165.5 162.9 162.6 162.5 162.2 161.5 162.5 163.6 161.1 160.8 164.4 Nondurable........................................ 38.38 150.8 153.6 154.1 153.4 152.9 152.6 152.8 151.1 151.4 151.5 154,0 154.2 154.7 156.5 Mining..................................................... 8.23 120.5 121.6 123.8 123,2 122.4 121.5 122.0 120.2 123.8 128.0 127,8 124.3 121.2 123.7 Utilities................................................... 5.32 173.9 178.5 179.4 180.6 180.5 181.9 182.7 182.7 183,2 184.1 184.8 184.8 187.6 188.0 Durable manufactures Primary and fabricated metals........... 12.32 151.5 151.1 151.2 147.5 146.3 143.9 143.0 142.8 142.9 142.8 142.3 141.8 143.2 145.6 Primary metals...................................... 6.95 142.7 140.5 137.6 132.6 131.9 129.2 129.1 128.9 129,0 129.6 129.3 129.2 131.6 134.8 Iron and steel....................... 5.45 136.2 132.4 130.1 124.9 124.8 123.7 122.7 122.9 121.2 122.3 124.3 125.6 127.6 133.1 Nonferrous metals and products.. 1.50 166.2 161.7 163.5 163.5 167.2 162,1 161.4 154.4 156.4 155.3 144.2 141.1 142.4 142.8 Fabricated metal products................. 5.37 163.0 164.7 168.7 166,7 165.0 162.9 161.0 160.8 160.8 159.8 159.1 158,1 158.1 159.6 Structural metal parts..................... 2.86 158.8 160.2 161.4 160,7 160.9 160.1 158.1 156.4 156.9 156.1 156.8 156.0 156.4 159.3 Machinery and related products......... 27.98 176.1 181.6 181,5 179.5 175.8 176.7 176.5 176.5 175.5 177.5 179.6 175.0 173.6 178.1 Machinery............................................... 14.80 183.8 189.8 190.3 190.3 186.8 184.5 182.1 180.5 177.5 180.0 182.8 182.2 179.6 183.2 Nonelectrical machinery................. 8.43 181.9 188.2 190.4 190.7 187.3 185.2 183,5 181.7 181.3 182,2 182.6 182.1 177,2 180.9 Electrical machinery........................ 6.37 186,4 191.8 190,2 189,7 186.2 183.6 180.3 178.9 172.4 177,1 183,2 182.4 182.8 186.3 Transportation equipment................. 10.19 166,9 170.6 169.1 162,6 157.5 162.6 165.7 167.5 169.3 170.8 171.9 159.2 159.3 165.7 Motor vehicles and parts............... 4.68 168,7 165.8 163.7 147,2 136.5 143.8 149.5 152.0 154.5 156,7 158.0 129.4 128.7 141,5 Aircraft and other equipment.... 5.26 165.0 174.6 173.7 176.0 175.6 178.8 179.8 181.4 181.8 182.6 183.6 184.3 185.2 186.0 Instruments and related products. .. 1.71 176.5 183.2 184.6 186.2 183.4 185.8 185.2 185.3 184.1 182.9 183.2 183.1 183.2 185.4 Ordnance and accessories................... 1.28 Clay, glass, and lumber........................ 4.72 132.9 129.1 128.8 128.6 128.9 128.4 129.8 127.8 126.7 127,3 126.7 129.6 131.4 134.7 Clay, glass, and stone products......... 2.99 140.7 139.2 138.1 137.2 136.9 134.9 136.0 134.8 133.5 134.1 136.9 138.4 139.7 142.3 Lumber and products......................... 1.73 119.4 111.8 112.8 113.7 115.2 117.3 119.1 115.6 114.9 115.5 109.2 114.3 117.0 121.5 Furniture and miscellaneous................ 3.05 165.0 167.1 168.1 166.3 163.9 162,4 162.9 162.3 161.5 159.1 159.9 161.4 160.9 16J. 4 Furniture and fixtures........................ 1.54 171.9 175.6 175.2 172,1 no.6 166.5 166.5 166.5 166.3 162,7 164.8 166.3 166.6 168.0 Miscellaneous manufactures.............. 1.51 157.9 158.5 160.9 160.3 157.1 158.2 159.2 158,1 156,7 155.4 154.9 156.4 155.0 154.8 Nondurable manufactures Textiles, apparel, and leather............. 7.60 141.6 142.2 142,2 140.3 137.6 135.5 135.5 135.3 134.8 135.3 137.6 139.1 140.6 141.9 Textile mill products........................... 2.90 142.5 141.8 141.7 140.7 138.9 138.8 137.8 137,8 136,6 136,8 138.7 141.3 145,4 147.3 Apparel products.................................. 3.59 150.1 152.3 152.2 150.2 147.1 143.6 142.5 142,6 142.4 144,2 146.4 146.8 146.4 Leather and products.......................... 1.11 111.7 110.8 lll.l 107.7 103.7 101.0 107.1 105.0 105.4 103.0 106.5 108.4 109.6 ........... Paper and printing................................ 8.17 146,4 148.5 147.4 148.4 148.7 149.5 149.9 149.1 149.4 148.6 150.3 148.5 148.5 150.2 Paper and products.............................. 3.43 152.1 153.7 152.6 152.5 152.4 152.4 152,1 151.4 151.6 149.0 152.8 152.9 154.2 156.2 Printing and publishing....................... 4.74 142,1 144.7 143.7 145,5 146.1 147.4 148.3 147.4 147.8 148.3 148.6 145.4 144.3 145.9 Newspapers........................................ 1.53 134.2 135.2 133.2 133.7 134.8 132.8 133.8 133.1 134.3 136.1 137.0 135,7 134.0 134.4 Chemicals, petroleum, and rubber.... 11.34 181.9 188.5 188.6 187.1 186.5 186.8 186.4 182.2 183,0 184.0 189.5 191.2 190. 9 195,3 Chemicals and products..................... 7,58 193.2 200.6 201.0 200,3 200.6 201.1 200.1 199.6 199.9 201.0 200.7 202.3 203.7 206.7 Industrial chemicals......................... 3.84 221.0 229.7 231,7 231,6 230,9 231.3 228,3 228.8 227.5 227,6 231.4 234.2 237.3 Petroleum products............................. 1.97 128.3 129.1 129.0 128,7 127,4 130.1 133,1 132,1 134.4 132,8 133,2 137.0 136.4 137.3 Rubber and plastics products............ 1.99 191.9 201.6 200.7 195,1 191.6 188.4 186.9 165.7 166.9 170.1 203.1 202.4 196.1 Foods, beverages, and tobacco............ 1J.07 128.] 128.9 131.2 131.0 131.5 131.1 131.8 130.9 131.3 130.9 131.0 130.4 131.1 130.8 Foods and beverages................. 10.25 128.7 129.9 132.1 132.0 132.4 132.3 133.1 132,0 131,9 131.5 131.7 131.2 132.2 131.8 Food manufactures.......................... 8.64 126.6 127.5 130.2 130,4 130.3 129.7 130.6 130.3 129.9 129.4 129.0 128.9 129.3 128.9 Beverages............................................ 1.61 139.9 142,5 142.4 140.8 143.9 146.1 146.3 141.2 142.9 142.8 146.3 143.8 147.5 Tobacco products................................. .82 120.0 117.2 119.3 118.5 120.2 116,2 116.0 117.4 123.9 123.6 121.4 120.2 118.0 Mining Coal, oil, and gas.................................. 6.80 117.8 119.1 120.8 119.8 119.0 117.6 118.5 118.0 121.7 128.0 128.8 125.4 122.2 124.5 Coal......................................................... 1.16 117.0 117.0 127,6 120,7 115.7 115,1 125,5 120.1 122,5 122.6 117.2 115.5 112.3 115.3 Crude oil and natural gas................... 5.64 118,0 119.6 119,4 119.7 119.6 118.1 117.1 117.5 121,6 129.1 131.2 127.5 124.2 126.4 Oil and gas extraction..................... 4.91 123.8 125.6 125.5 126,1 125.4 125.1 125.3 125.3 129.5 138.0 141.9 137.7 133.2 133.8 Crude oil........................................ 4.25 119.3 120.8 120.8 121.0 120.0 120.1 119.6 119.6 123.6 133.9 138.0 133.1 128.0 128.8 Gas and gas liquids..................... .66 152.0 155.9 155,4 158,4 160.0 156.7 161.5 161.3 167.3 Oil and gas drilling.......................... .73 79.1 79.2 78.1 76.3 80.5 71.0 61,8 65.5 67.7 69.0 58.9 58.5 63.4 76. 1 Metal, stone, and earth minerals..... 1.43 133.5 133.5 137.9 139,4 138.9 140.0 138.7 130.8 133.6 127.7 123.4 119.1 116.2 119.7 Metal mining......................................... .61 133.4 133,7 136.1 140.3 142.1 143.7 149.5 132.9 133.9 119.7 105.7 95.6 93.8 93.1 Stone and earth minerals................... .82 133.5 133.4 139.3 138.7 136.6 137.2 130.6 129.2 133.3 133,7 136.6 136.5 132.9 139.4 Utilities Electric.................................................... 4.04 179.6 184.6 185.6 187.2 186.9 188,8 189.9 189.7 190,3 191.4 192.1 192.1 195.7 Gas........................................................... 1.28 156.1 Note.—Published groupings include some series and subtotals not Industrial Production—1957-39 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

A-54 INDUSTRIAL PRODUCTION: N.S.A. □ JANUARY 1968 MARKET GROUPINGS (1957-59 - 100) 1957-59 1966 1967 Grouping p po ro r­ ­ a 1 v 9 e 6 r 6 ­ tion age Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index .......................................... 100.00 156.3 160.1 156.9 156.4 156,6 157.0 157.9 156,0 159,0 150,5 157.9 161.1 161.3 160.8 Final products t total, .............. 47,35 155.5 160.1 157.2 157.0 156.8 157.2 157.7 155.2 159.8 151.2 136.9 163.3 162,3 161.2 Consumer goods................................ 32.31 147.5 151,4 145.4 145.9 145.8 146.2 147.1 144,2 150,5 139.9 147,7 155.7 155 4 151,6 Equipment, including defense.... 15.04 172.6 178.8 182.4 180.7 180.4 180.8 180.3 179.0 180,0 175.3 176.4 179.5 177.2 181.8 Materials.................................................. 52.65 157.0 160.0 156.6 155.9 156.5 156.7 158.1 156,6 158.3 150.0 158.9 159.1 160.4 160.6 Consumer goods Automotive products............................. 3.21 163,0 177.4 165.5 154.6 142.2 151,8 161.9 155,1 162,5 114,2 106.1 148.2 155.6 159.8 Autos.................................................... 1.82 169.5 193.4 175.7 155.4 132,6 151.5 167.6 166,4 177,1 94.8 62,2 140.1 148.8 159.0 Auto parts and allied products..... 1.39 154.4 156.3 152.1 153.7 154.8 152.3 154.2 140.3 143.2 139.8 163.9 158.8 164.6 160.7 Home snoods and apparel...................... 10.00 153,0 156,6 146.5 147.9 154.2 151.3 149.8 144.0 148.6 132.7 149.0 155.0 159.6 157.1 Home goods................. 4.59 168.9 176.5 170.9 164.7 167,8 165.9 161.8 159,8 161,6 145,9 159.3 172.0 180.0 180.8 jApp1ifjnr.es TV, and radios........... 1.81 166.6 173 1 163.1 159.3 171.2 164.0 157.0 152,0 152.8 128.0 140.4 165.1 182 2 181 4 Appliances...................................... 1.33 166.7 163.0 155.2 161.8 171.1 167.0 169.8 159.7 169.9 141.8 134.5 160 4 180' 1 178 2 TV and home radios.................... .47 166.3 201.5 185.5 152.3 171.4 155,5 120.7 130.5 104.6 89.3 157.2 178*2 187 8 190 4 Furniture and rugs........................... 1.26 165.7 170.8 169.6 159.8 156.6 155.5 153.5 151,2 155,4 148,8 160,5 163 8 167 6 170 1 Miscellaneous home goods............. 1.52 174.3 185 2 181.4 175.3 172.9 176,6 174.4 176,0 177,3 164,8 180.6 187 1 187 7 188.8 Apparel, knit goods, and shoes......... 5.41 139.5 139.8 125.9 133.6 142.6 138.9 139.7 130.6 137,6 121.5 140.2 140.5 142.4 (Consumer staples.................................. 19.10 142.0 144.3 141.4 143.4 142.0 142.6 143.3 142.4 149.4 148.0 154.1 157.4 153 2 147 3 Processed foods..................................... 8.43 126.4 132.8 126.5 123.9 121.7 120.9 121.3 122.5 128.9 128.4 137,1 149 7 143 7 134,4 Reverages and tobacco........................ 2.43 133.2 127.2 116.3 117.3 124 3 133,0 141.8 143.0 156.2 142.8 149.3 139 3 141 6 Drugs soap and toiletries................. 2.97 173.5 181 6 176 0 179 2 178 7 179,4 185.1 180.7 189,1 179.4 183.9 185 2 186 6 185 6 Newspapers,’ magazines, and books. 1.47 136.5 137.0 138.8 140.2 141.7 144.4 144.2 142.1 140.8 140.7 142.6 137> 13417 134l6 Consumer fuel and lighting................ 3.67 159.9 154.1 165.5 176.8 169.8 167,7 159.0 156,2 163.2 173.7 176.7 172 3 162 5 Fuel oJl find gasoline....................... 1.20 128.5 129,0 132.2 130.8 128.8 126.7 125.0 126.2 134.3 133.6 134.5 138 5 134.6 136 3 Residential utilities.......... 2.46 175.2 Electricity................... 1.72 186.6 172.8 194.5 220.2 206.7 203.6 186.1 178,8 187,5 210.4 215.7 203.5 185,3 Gas................................................... .74 148.9 Equipment Easiness equipment................................ 11.63 181.2 185.3 189.8 187.3 186.7 186.2 185.5 183.2 184.2 177.4 178.0 181 1 177 ? 182 3 Industrial equipment............................ 6.85 172.3 175 6 180.2 177.7 175 9 174 3 172,1 169,3 170.7 167,3 166.3 168 I 161 3 168 8 Commercial equipment. ..................... 2.42 190.1 200 8 200.3 196 9 198 4 197 3 197.9 198,4 201,1 198.3 201.9 203^3 202 4 206 2 Freight and passenger equipment... 1.76 208.3 212.6 218.1 214.5 215.0 218.0 222,0 218.1 217,3 202,8 205.5 2123 215', 3 218^9 Farm equipment.................................... .61 167.5 154.3 174.9 179.3 180.6 183.8 181.6 178.0 173.3 134.9 135.8 148.6 147,8 Defence equipment............................ 3.41 Materials V^urabie goads materials...................... 26.73 156.9 158 8 154.5 152.2 151 5 151,9 152.5 152,5 154,3 145.0 152,5 152 0 152 5 153 2 Consumer durable............... 3.43 166.5 171.9 166 2 153.8 144 9 143 7 141.6 148,0 146.2 123.4 147.0 133 6 135 3 147 7 Equipment............................................. 7.84 180.7 191.2 193.2 192.3 188.2 187.6 185,2 182,2 181.4 175,6 180.7 182*9 183*5 186 3 Construction..................... 9.17 141.7 138 4 131.5 128.5 129.5 133.4 137,8 139,2 146.9 143.6 148.7 148 4 146 8 140 7 Metal materials n.e.c.«.................... 6.29 144.3 140 8 133.6 136.1 141.6 138.9 139.3 137.2 135.6 120,5 126.0 128*9 131 6 133 2 Nondurable materials............................ 25 92 157.2 161 3 158 7 159.7 161,7 161.7 163,9 160.9 162.4 155.2 165.4 166 4 168 4 168 3 Rysiness supplies................................... 9 11 149.0 153 0 147.7 147 2 150 4 152 8 157,7 152.6 154,0 141.5 151.9 154 9 157 9 155 5 Containers.......................................... 3.03 145.6 143 1 134.0 139.3 145 3 145,3 153,8 147.7 153.1 138.2 153.0 155'5 161 5 148 5 Genera) business supplies............... 6 07 150.6 157 9 154 5 151 2 153 0 156 5 159.7 155.0 154,4 143.1 151.3 154 5 156 1 159 0 Nondurable materials n.e.c................. 7 40 193.4 200 7 195 5 198 7 202 2 200 1 201.6 198.9 199.0 184.6 198.9 203.0 210 4 212 4 Rusin ess fuel and power..................... 9.41 136.6 138 5 140,4 141.1 140.6 140,1 140.2 139.0 141.9 145.3 152.1 148 7 145 7 145 9 Mineral fuels..................................... 6.07 122.5 125.2 127.3 127.0 127.6 125,8 126.9 124.3 125.2 128.1 135.5 131 *9 129^7 1316 Nonresidential utilities.................... 2.86 172.9 Electricity................... 2.32 174.4 173.5 175.2 178,9 174,3 178.0 175.7 178.2 187,5 193.9 201.8 197 2 190 2 General industrial.................... 1.03 171.7 176.7 175.3 177,9 172.8 178.0 176,7 181.4 184.2 182.0 189.4 188 3 1870 Commercial and other............ 1.21 184.0 178.2 182.7 187,6 183.2 186.0 182.5 183.4 198.9 213.0 221.7 214J 202’0 Gas................................................ • .54 166.1 Supplementary groups of consumer goods Automotive and home goods............ 7.80 166.5 176.9 168.7 160.6 157.2 160.1 161.8 157.8 162,0 132,9 137.4 162.2 170,0 172.1 Apparel and staples.............................. 24.51 141.4 143.3 138.0 141.3 142.1 141.8 142.5 139.8 146.8 142,2 151.1 153.7 150:8 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ INDUSTRIAL PRODUCTION: N.S.A. A-55 INDUSTRY GROUPINGS (1957-59- 100) 1957-59 1966 1966 1967 Grouping pro­ aver­ por­ age tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct.r Nov. Total index...................................... • 100.00 156.3 160 1 156.9 156,4 156.6 157.0 157.9 156.0 159.0 150.5 157.9 161.1 161.3 160.8 Manufacturing, total............................. 86,45 158,6 163,1 158.8 157.8 158.4 158.9 160.3 158.1 161.0 150.5 158.3 162.6 163.6 163.2 Durable.............................................. 48.07 164.8 169.7 167.8 164.5 163.4 164.4 164.9 164.1 165.6 154.7 158.9 163.8 164.5 167.4 Nondurable........................................ 38.38 150.8 154.7 147.6 149.4 152.1 152.1 154.4 150.6 155.3 145.1 157.4 161.2 162.6 158.0 Mining..................................................... 8.23 120.5 122.0 122.6 121.4 121.9 120.1 122.1 121.8 123.9 124.8 129.0 125.6 123.4 124.2 Utilities................................................... 5.32 173.9 Durable manufactures Primarv and fabricated metals........... 12,32 151.5 151 8 147.7 146.9 148.2 146.7 146.5 145,0 145.3 135.1 142.2 145.1 146.0 147.8 primary metals...................................... 6.95 142.7 139 8 132,1 134.6 139.4 137.2 136.5 133.4 130.9 117.9 125.4 129.2 132.9 136.2 Iron and steel.................................... 5.45 136.2 133 7 126 8 127.4 131.0 129.9 127.6 125.4 121.2 111.9 120.6 125.6 129.5 134.4 Nonferrous metals and products.. 1.50 166.2 16117 151.1 160.7 169.7 163.9 168.5 162.6 166.1 139.8 142.8 142.1 145.1 142.8 Fabricated metal products......... 5.37 163.0 167.3 167 9 162.7 159,6 159.0 159.4 160.0 164.0 157.4 163.9 165.7 162.8 162.8 Structural metal parts..................... 2.86 158.8 162 6 163 0 157.5 154.5 153.9 153.4 154.8 160.0 156.1 160,7 162.2 161.1 161.7 Machinery and related products......... 27.98 176.1 184.4 184,8 180.7 177.9 179.5 179.7 178.8 179.8 166.9 169.1 175.8 176.3 181. J Machinery.............................................. 14.80 183.8 189,8 192.2 189.8 188.9 187.2 185.4 182.5 182.2 173.7 177.2 182.6 181.4 185.2 Nonelectrical machinery................. 8.43 181.9 185 2 191.7 190.7 189.9 190.4 189.0 186,2 186.4 177.6 175.8 179.7 174.0 179.8 Electrical machinery........................ 6.37 186.4 196 0 192 9 188.6 187.7 183.1 180.5 177.6 176.7 168.5 178.9 186.4 191.3 192.3 Transportation equipment......... 10.19 166 9 177.7 174 7 166.8 160.4 166.4 169.8 171,4 174.0 151.4 150.8 160.8 163.7 170.5 Motor vehicles and parts............... 4.68 168.7 178.4 169 2 155.0 142.4 151.0 157.0 160,4 165.2 119,5 116.0 134.0 137.2 149.2 Aircraft and other equipment.... 5.26 165.0 177.2 179.8 177.8 176.0 179,7 180.7 180.7 180.9 178.2 180.3 183.6 186.1 188.8 Instruments and related products... 1.71 176.5 184.7 186.8 184.0 182.5 184.9 184.8 183.4 185.9 181.1 184,7 185.1 185.2 186.9 Ordnance and accessories................... 1.28 Clay, glass, and lumber....................... 4,72 132.9 126 9 118 1 116.8 120.5 124.4 129.5 130,0 136.7 133.5 139.1 138.7 139.2 136.3 Clay,' glass,' and stone products......... 2.99 140.7 138.5 129.4 125,5 125.3 130.2 135.5 138.3 144.6 143,9 149.5 146.3 147.4 146.6 Lumber and products.......................... 1.73 119 4 106 8 98 7 101.8 112.3 114.4 119.1 115.6 122.9 115,5 121.2 125.7 125.2 118.5 Furniture and miscellaneous................ 3.05 165,0 174,2 169 7 161.0 158.7 159.4 158.6 158.6 161.8 154.8 164.5 167.4 169.4 169.2 Furniture and fixtures......................... 1.54 171.9 178 8 178'.4 168.7 166.3 164.5 162,0 161.5 166.0 160.3 169.4 171.3 172.9 172.7 Miscellaneous manufactures.............. 1.51 157.9 169.6 160.9 153.1 150.8 154.2 155.2 155.7 157.5 149.2 159.5 163.4 165.8 165.6 Nondurable manufactures Textiles, apparel, and leather............. 7.60 141 6 141 4 130 1 137.9 144.3 140.7 142.3 135.2 139.2 121.9 142.0 142.6 147.2 142.3 Textile mifl products........................... 2.90 1425 1425 131*8 140.0 141.7 138.8 144.0 141.9 140.7 124.2 142.2 144.1 152.7 151.0 Apparel products................................. 3.59 150 1 1 50 8 137 0 145,7 156.7 152.9 152.5 141,2 148.8 129.1 150,8 151.6 153 7 leather and products.......................... i Ji 11L 7 108*6 103 7 107.2 110.9 106 0 105,0 98 7 104.3 92.7 113 4 110.0 112.3 Paper and printing........................... 8.17 146 4 151 6 144,2 146.1 149.3 150.6 153.5 150,2 150.8 139.7 149.0 150.5 156.2 153.4 Paper and products.............................. 3.43 152,1 154 5 140 4 151.7 156.2 153.9 158.2 152.2 156.1 137.1 154.3 155.2 166.2 157.0 Printing and publishing....................... 4.74 142 1 149*5 146*9 142.0 144.4 148.3 150.2 148.7 147.1 141.6 145.2 147.2 149.0 150.7 Newspapers.................... 1.53 134.2 148*7 136 5 123.0 129.4 134.8 142.5 141.9 135.0 118,4 125.4 135.0 143.8 147.8 Chemicals, petroleum, and rubber.... 11.54 181.9 187.5 183.7 184.9 187.6 187.8 190.2 183.6 188.5 177.5 190.8 i94,7 196.0 194.9 Chemicals and products..................... 7.58 193 2 200 0 196 2 197.4 201.4 202.3 205.7 201.8 205,6 194.6 202.3 206.1 208.2 207.2 Industrial chemicals......................... 3 84 221 0 230 8 229 4 228.1 234.4 233 6 232.9 231.1 230.9 219.6 230 2 237 7 242 0 Petroleum products............................. 1.97 128 3 127 4 1259 124.8 124.9 125.5 127.8 130.8 138.4 139.8 140.3 142.5 137*8 135.5 Rubber and plastics products............ 1*99 191.9 199^6 193 7 197.1 197.3 194.2 192.7 166,5 172,7 149.7 197,0 203 0 206 9 Foods, beverages, and tobacco............ 11.07 128.1 131.9 124 6 122,9 122.7 123.9 126.1 127.1 135.0 131.3 139.5 146.9 143.1 133.8 Foods and beverages........................... 10 25 128 7 132 9 126 8 123.4 122.9 124.6 125.9 127.6 135.2 133.1 140.1 148.6 144.2 134.9 Food manufactures......................... 8.64 126.6 133^2 126 9 124.5 122.2 121.3 121.7 122.6 129.0 128.1 136.7 149.0 143.5 134.7 Beverages............................................ 1 61 139 9 131 1 126 0 117.4 126.6 142,4 148.6 153.9 168.1 159.7 158.4 146.7 148.2 Tobacco products................................. .82 120.0 119.*5 97 J 117.2 119.6 114.5 128,5 121.6 132.6 109.4 131.4 124 9 128 5 Mining Coal, oil, and gas................. 6 80 117.8 120 2 122 0 121.7 122.4 119.5 119.6 117.8 118.9 121.9 127.7 124.4 122.8 125.6 Coal............................ 1,16 117.0 121 *8 125 3 118.3 117.1 116.0 126.4 121.3 116,5 99.9 123,3 122.2 122.4 120.0 Crude oil and natural gas................... 5.64 118.0 119 9 121'4 122.4 123.5 120.3 118.2 117.0 119.4 126.4 128.6 124.9 122.9 126.7 Oil and gas extraction..................... 4.91 123.8 126 0 127 8 129,0 130.0 128.1 127.0 125,0 127,2 134,8 138.3 134.1 131.5 134.3 Crude oil........................................ 4 25 119 3 120 8 122 0 122,8 123.6 122.5 121,5 120.2 122.4 131.2 135.2 130.4 126.7 128.8 Gas and gas liquids..................... .66 152.0 159.0 164 9 168.7 171.0 163.9 162,0 155.7 157.9 Oil and gas drilling.......................... .73 79.1 78 8 77 9 77.4 79.4 67.2 58.6 63.3 66.'3 69.5 62.6 62.1 65,0 75.7 Metal, stone, and earth minerals........ 1.43 133,5 130,3 125,0 119.9 119.4 122.9 134.2 140.9 147,6 139.1 135,3 131.4 126.3 117.7 Metal mining......................................... 61 133.4 124 3 122 5 123,5 127.9 127.9 139.0 146.2 151.3 128.1 114.2 108.0 100.4 86.6 Stone and earth minerals.................... .82 133.5 13417 126.-8 117.3 113,2 119.1 130.6 136.9 144.9 147.2 150.9 148.8 145.5 140.8 Utilities Electric...................... 4.04 179.6 173.2 183.5 196.5 188.1 189.0 180.1 178.4 187.5 200,9 207.7 199.9 188.1 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

A-56 BUSINESS ACTIVITY; CONSTRUCTION □ JANUARY 1968 SELECTED BUSINESS INDEXES (1957-59 « 100, unless otherwise noted) Industrial production fac M tu a r n in u g ­ 2 Prices 4 Ca­ Nonag- Major market groupings pacity Con­ ricul- Major industry utiliza­ struc­ tural Total Period Total Final products Mate­ groupings r c t ( a e i p o n t e i n t r o ) t c t r i o a o c n n t ­ s T m p o e e l m t o n a y t ­ l — ­ 1 p m E l e o m n y ­ t - P ro a l y ls ­ s r a e l t e a s i l 3 s C um on e ­ r W c s o a h m l o e l ­ e­ Total s C u o m n e ­ r E m q e u n ip t ­ rials Mfg. M in i g n­ U iti t e il s ­ modity goods 1951....................... 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106,1 80.2 76 90.5 96.7 1952....................... 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.0 1953....................... 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954....................... 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955....................... 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956....................... 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106,7 100.2 92 94.7 96.2 1957....................... 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958....................... 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74.0 102 97.8 95.2 93.5 98 100.7 100.4 1959....................... 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 105 101.5 100.1 105.1 105 101.5 100.6 1960....................... 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 80.6 105 103.3 99.9 106.7 106 103.1 100.7 1961....................... 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 78.5 108 102.9 95.9 105.4 107 104.2 100.3 1962....................... 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 82.1 120 105.9 99.1 113.8 115 105.4 100.6 1963....................... 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 83.3 132 108.0 99.7 117.9 120 106.7 100.3 1964....................... 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 85.7 137 111.1 101.5 124.3 127 108.1 100.5 1965....................... 143.4 142.5 140.3 147.0 144.2 145,0 114,8 160.9 88 5 143 115.8 106.7 136.6 138 109.9 102.5 1966....................... 156.3 155.5 147.3 172.6 157.0 158.6 120.5 173.9 90.5 145 121.8 113.3 151,4 148 113.1 105.9 1966—Nov........... 1 1 5 5 9 9 . . 1 5 1 1 5 5 9 9 . . 0 6 1 1 4 4 9 9 . . 8 2 1 1 8 8 0 0 . . 0 7 1 1 5 5 9 9 . . 2 0 1 1 6 6 1 1 . . 5 7 1 12 2 3 1 . . 8 6 1 1 7 7 8 9 . , 5 4 J 590.0 t / 1 13 3 3 0 1 12 2 3 3 . , 9 4 1 1 1 1 4 4 . . 6 7 1 1 5 5 4 4 . . 5 4 1 1 4 5 8 0 1 1 1 1 4 4 . .7 6 1 1 0 0 5 5 . . 9 9 1967—Jan............. 158.2 158.1 148.0 179.9 157.9 160.1 123.2 180.6 126 124.5 114.7 156.2 150 114.7 106.2 Feb............ 156.6 157.0 146.1 180.3 155.8 158,5 122.4 180.5 »87.1 143 124.7 114.1 153.2 149 114.8 106.0 156.4 157.1 146,6 179.6 155.5 158.2 121.5 181.9 149 124.9 113.5 152.9 151 115.0 105.7 156.5 157.3 147.1 179.2 156.0 158.2 122.0 182.7 138 124.7 112.4 151.0 152 115.3 105.3 May.......... 155.6 156.3 146,0 178.5 154,6 157.2 120.2 182.7 ”84.9 154 124.6 111.7 150.1 151 115.6 105.8 155.6 156.8 146.9 178.1 154.9 157.0 123.8 183.2 164 125.5 112.5 151.7 155 116.0 106.3 July........... 156.6 157.1 147.1 178.4 156.1 157.6 128,0 184.1 149 125,5 111.6 151.4 155 116.5 106.5 Aug........... 158.1 158.2 148.6 178.9 157.9 159.4 127.8 184.8 ”84.1 165 126.0 112.7 155.0 155 116.9 106.1 156.8 '157.0 '147.0 178.6 '156.7 '158.1 '124,3 184.8 168 125.8 111.2 154.5 156 117.1 106.2 Oct............ '156.6 '156.5 '147.4 '176.0 '156.6 '158,1 '121.2 '187.6 171 126,1 '111.4 '154.3 153 117.5 106,1 Nov........... 159,3 159.6 149,7 180.9 159.3 160.9 123.7 188.0 P84.3 168 '127.4 '113.4 '157,7 155 117.8 106.2 Dec.”........ 161.6 161.4 152.2 181.2 161.6 163,6 123.7 188.0 127.8 113.6 159.6 154 106.7 i Employees only; excludes personnel in the armed forces. Construction contracts: F. W. Dodge Co. monthly index of dollar a Production workers only. value of total construction contracts, including residential, nonresidential, 3 F.R. index based on Census Bureau figures. and heavy engineering; does not include data for Alaska and Hawaii. 4 Prices are not seasonally adjusted. Employment and payrolls: Based on Bureau of Labor Statistics data; 5 Figure is for 4th quarter 1966. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Note.—Data are seasonally adjusted unless otherwise noted. Capacity Utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS (In millions of dollars) 1966 1967 Type of ownership and type of construction 1965 1966 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Total construction............................... 49,272 50,150 3,461 3,189 2,838 3,300 4,424 4,389 5,095 5,414 4,879 5,104 4,695 5,053 4,258 By type of ownership: Public............................................ 16,302 18,152 1,357 1,287 1,113 1,188 1,509 1,498 1,820 2,169 1,989 1,824 1,677 1,526 Private.......................................... 32,970 31,998 2,104 1,902 1,725 2,112 2,916 2,891 3,275 3,245 2,890 3’280 3',018 3'527 By type of construction: Residential building.............. 21,247 17,827 1,076 903 937 1,056 1,584 1,627 2,002 2,000 1,829 1,912 1,741 1,887 1,717 Nonresidential building................. 17,219 19,393 1,424 1,358 1,175 1,430 1,714 1,830 1,808 2,070 1,749 1,847 1,786 1,874 1 ,585 Nonbuilding.................................... 10,805 12,930 961 928 726 814 1,127 931 1,285 1,344 1,302 1,345 1,169 1,292 956 Note.—Dollar value of total contracts as reported by the F. W. Dodge data exceed annual totals because adjustments—negative—are made to Co. does not include data for Alaska or Hawaii, Totals of monthly accumulated monthly data after original figures have been published. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ CONSTRUCTION A-57 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonrcsidential Period Total N fa o rm n­ Buildings MUi- High­ C v o a n ti s o e n r ­ Total d r en es t i i ­ al Total Other Total tary way dev & el op­ Other 2 Indus­ Com­ Other ment trial mercial b in u g i s ld 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................................. 491139 35,080 19,006 16,074 31557 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 J 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 5............................... 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 49s840 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—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 2j 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..................... 73,084 46,906 20',829 26,077 6'097 7', 194 4'883 7,903 26,178 642 9^060 2^285 14’,191 Apr...................... 71,961 46,042 21,130 24,912 5'579 6,926 4'749 7,658 25,919 583 8,956 2^059 14,321 May.................... 73;904 47,813 22,107 25,706 6,006 7,093 4.744 7,863 26,091 536 8,931 2,074 14,550 *'72,374 48,052 22,885 25,167 5,886 6,683 4,716 7,882 r24.322 July ,,............... r73,399 49,151 23,652 25,499 6,154 6*739 4 748 7,858 r24'248 r74,392 50,170 24.619 25,551 6,'011 6,’437 5 189 7,914 '24,222 r76,’295 51 726 25,306 26,’420 6^577 6^731 5 082 8,030 r24.569 76^910 52 195 25^971 26^224 6,240 68991 5 037 7,956 24,715 77,189 52,064 26,575 25,489 5,592 6,860 5,147 7'890 25'125 1 Includes religious, educational, hospital, institutional, and other build- 3 Beginning 1963, reflects inclusion of new series under “Public” (for ngs. 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 * 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 Ann S u . a A l . rate, G un o d v e e r r w nm rit e t n en t- (private only) Private Period Total Metro­ m N e o tr n o ­ ­ Public Total N fa o rm n­ politan politan Total fam 1- i ly fam 2- i ly f M am ul i t l i y ­ Total FHA VA 1956 ................... 1,349 1,325 24 465 195 271 1957 ................... 1,224 1,175 49 322 193 128 1958 ............. 1,382 11314 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 1966—................... 975 956 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 h099 116 77 38 114 80 4 30 2 16 12 4 May................... 1,274 1,224 134 92 42 132 87 5 40 2 23 18 5 June............... 1,233 1,214 132 88 44 125 88 3 35 6 24 19 5 July..................... 1,369 1,356 126 88 39 125 82 5 38 1 20 15 5 Aug..................... 1,407 1,381 130 90 40 127 84 4 40 3 23 17 6 Sept..................... 1,445 1,415 126 88 37 122 78 4 40 4 20 16 5 Oct............... H .486 Pl,468 P136 98 38 »135 81 5 48 P2 25 19 5 Nov..................... Pl ,556 Pl ,533 P117 83 35 »116 67 3 45 J2 20 15 4 Note.—Beginning with 1959, Census Bureau scries includes both farm by area or type of structure, Data from Federal Housing Admin, and and nonfarm series developed initially by the Bureau of Labor Statistics. Veterans Admin, represent units started, based on field office reports of Series before 1959 reflect Census Bureau revisions that arc not available first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-58 EMPLOYMENT □ JANUARY 1968 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Total non- Total Unemploy­ Period i p n o st p it u u l t a i t o i n o a n l l N ab o o t r i n f o t r h c e e l f a o b rc o e r Employed1 m ra e t n e t 2 N.S.A. N.S.A. S.A. Total Total In c u n l o t n u a ra g l r i- agric I u n l ture U pl n o e y m ed ­ (pe S r . A ce . nt) industries 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 671762 63,076 4,687 4,070 5.7 1964............................. 127,224 51,394 751830 73',091 69,305 64,782 4,523 31786 5.2 1965............................. 129,236 52,058 77,178 74,455 711088 66,726 4,361 31366 4.5 1966............................. 1311180 52,288 781893 751770 72,895 68,915 31979 2,875 3.8 1967............................. 133',319 52,527 80,793 771347 74,371 70,527 3',844 2’,975 3.8 1966—Dec.................. 132,121 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 21888 3.7 Mar............... 132,627 531678 79^959 761523 731747 69,892 31855 2,776 3.6 Apr................ 1321795 53,234 80,189 761740 731910 70,020 3,890 21830 3.7 May.............. 132,969 53,419 79,645 76J89 73,289 69,637 31652 21900 3.8 June.............. 133,168 50.704 80,681 77,237 74,147 70,420 3,727 3j 090 4.0 July............... 133,366 5O',446 80,954 771505 74,489 70,633 3,856 3,016 3.9 Aug............... 133,645 51,074 81,160 771701 741718 70,726 3',992 21983 3.8 Sept............... 1331847 52,865 81,259 77,803 74,625 70,949 31676 3',178 4.1 Oct................. 134,045 52,450 81,460 77,997 74,630 70,923 31707 3,367 4.3 Nov............... 134,224 52,641 81,576 78,106 75,083 71,254 31829 3,023 3.9 Dec................ 134,405 52,879 82,051 78,'582 75,681 71,417 4,’264 2,’90l 3.7 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning Jan. 1967 data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ T t l i i o r c a n n u & s t p i l o i p t r i u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 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............................................................... 58332 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 1967p ........................................................... 66,066 19,336 613 3,265 4^61 13,676 3,228 10;072 11,616 SEASONALLY ADJUSTED 1966__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.................................................... 651692 19,507 624 3,352 4.247 13,541 3,165 9,883 11,373 651749 19,445 624 3,313 4,246 13,557 3,179 9,946 11,439 Anr .................................................. 65,653 19,331 620 3,276 4,212 13,572 3,194 9,973 11,475 May. ...............•.•••-'•< 65J639 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 66,190 19,318 606 3,223 4,283 13,664 3,253 10,130 11,713 66,055 19,142 601 3,238 4,262 13,719 3,264 10,161 11,668 Oct. ,............•■■•■............. 66,243 19,169 597 3*236 4,251 13,776 3,270 10,199 11,745 Nov p................................. 661929 19,418 597 3,299 4,288 13,909 3,290 10,301 11,827 Dec p . ............ 671128 19,469 597 3,350 4,289 13,910 3,302 10,335 11,876 NOT SEASONALLY ADJUSTED 1966__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 64,843 19,263 607 2,922 4,191 13,332 3,157 9,817 11,554 Apr.................................................. 65,215 19,181 614 3,106 4,174 13,412 3,181 9,963 11,584 May..................... 65,594 19,133 618 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 Aug ,,...............>•<.••• 66,408 19,435 620 3,594 4,330 13,622 3,305 10,262 11,240 66,672 19,443 609 3,513 4,317 13,689 3,274 10,212 11,615 Oct.............................................. 66,914 19,388 601 3,463 4,281 13,808 3,267 10,230 11,876 Nov.p............................................... 671479 19,548 600 3,388 4,305 14,113 3,274 10,249 12,002 Dec.”................................................ 68,004 19,476 596 3,199 4,293 14,775 3,282 10,242 12,141 Note,—Bureau of Labor Statistics; data include all full- and part- domestic servants, unpaid family workers, and members of the armed time employees who worked during, or received pay for, the pay period forces are excluded. that includes the 12th of the month. Proprietors, self-employed persons, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ EMPLOYMENT AND EARNINGS A-59 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1966 1967 1966 1967 Dec, Oct. Nov.” Dec.’ Dec. Oct. Nov.” Dec.? 'Total...................................................................................... 14,495 14,034 14,279 14,308 14,513 14,249 14,404 14,327 Durable goods. -.................................................................... 8.501 8,083 8,293 8,305 8,528 8,163 8,357 8,332 Ordnance and accessories.......................................... 136 157 ’ 158 '162 '138 '158 '160 164 Lumber and wood products...................................... 519 513 515 520 508 521 516 509 Furniture and fixtures.......................................... 389 374 377 382 391 380 382 384 Stone day, and glass products................................ 513 500 507 512 503 507 509 502 Primary metal Industries............................................ 1,109 1,009 1,032 1,028 1 093 993 1 013 1,014 Fabricated metal products....................................... 1,069 1,024 1,041 1,047 1,076 1 036 1 052 1,053 Machinery...................................................................... 1,390 1,329 1,373 1,333 1 ^391 1,316 1 f 357 1’334 Electrical equipment and supplies........................... 1,347 1 '270 1 '291 1,295 1 367 1 294 1 313 1 314 Transportation equipment......................................... 1,394 1,289 1,379 1,398 1,430 1,313 I ,412 1,434 Instruments and related products............................ 286 '283 284 286 '288 284 ’286 287 Miscellaneous manufacturing industries................ 349 335 336 342 343 361 357 337 Nondurable goods................................................................ 5,994 5,951 5,986 6,003 5,985 6,086 6,047 5,995 Pood and kindred products...................................... 1 ’195 1,185 1 ’ 187 1’196 1 ’181 1 ’271 1 ’214 1 182 Tobacco manufactures............................................... ’ 74 ’ 70 77 70 ’ 80 87 ’ 85 76 Textile-mill products.................................................. 856 847 849 858 854 853 855 856 Apparel and related products................................... 1,252 1 ,223 I 232 I 235 1 248 1 240 1 243 1,230 Paper and allied products.......................................... 527 '531 533 535 529 535 537 537 Printing publishing, and allied industries............. 663 669 673 673 668 672 676 678 Chemicals and allied products.................................. 584 594 594 595 578 590 589 590 Petroleum refining and related industries.............. 118 121 122 121 115 122 121 119 Rubber and misc. plastic products.......................... 411 408 412 413 416 413 418 418 Leather and leather products............................ 314 303 307 307 316 303 309 309 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 hour; N.S.A.) (dollars per week; N.S.A.) Industry group 1966 1967 1966 1967 1966 1967 Dec. Oct. Nov.? Dec.? Dec. Oct. Nov.? Dec.* Dec. Oct. Nov.? Dec.? Total - ............................................................... 41.0 40.7 40.7 40.8 114,40 116.28 116.81 119.19 2.77 2.85 2.87 2.90 Durable goods.................................................... 41 .7 41.3 41.2 41.3 124.62 125.44 125.66 128 44 2.96 3.03 3.05 3.08 Ordnance and accessories............................. 42.0 41.7 42.0 41.6 138.02 137.43 139.68 140 10 3.24 3.28 3.31 3.32 I .umber and wood products........................ 40.3 40.5 41.3 40.9 90.80 99.55 99.80 98 25 2.27 2.44 2.44 2,42 Furniture and fixtures.................................... 40.6 40.4 40.5 40/5 93.79 97.82 97.34 98.95 2.26 2.38 2.38 2,39 Stone clay, and glass products.......... 41.7 41.8 42.2 41,6 115 23 121 25 122.67 120 35 2.77 2.88 2.90 2.90 Primary metal industries.............................. 41.7 41.3 41.6 41.7 137.61 137.90 140,83 142.61 3.30 3.38 3.41 3.42 Fabricated metal products........................... 42.1 41.4 41.5 41’3 124.53 124.38 125.22 126 35 2.93 2.99 3.01 3.03 Machinery......................................................... 43.6 42.3 42.4 42,3 138.60 135 46 137.05 139 20 3.15 3.21 3.24 3,26 Electrical equipment and supplies.............. 40.6 40.5 40.5 40.2 111.24 114.09 115.18 116.28 2.70 2.81 2.83 2,85 Transportation equipment........................... 41.6 41.5 39.7 41,6 144.93 146 86 140.59 150 88 3.41 3.48 3.48 3.55 Instruments and related products............... 41.9 41.1 41.1 41,2 116.89 118 53 119.36 120 35 2.77 2.87 2.89 2.90 Miscellaneous manufacturing industries... 39.7 39.4 39.7 39.4 91.20 93.53 94.80 95.28 2.28 2.35 2.37 2.40 Nondurable goods.................................................. 39.9 39.7 40.1 40.0 100.25 104.14 105.06 106.13 2.50 2.61 2.62 2.64 Food and kindred products......................... 41.0 40.7 40.8 40.7 106.14 107 98 109.47 109.88 2.57 2.64 2.67 2.68 Tobacco manufactures.......................... 39.0 39.0 38.2 36 5 88.10 86 05 83 28 87 02 2.17 2.13 2.18 2.29 Textile-mill products...................................... 40.9 41.3 41.5 41 8 82.40 88 19 89 03 89 67 2.00 2.12 2.13 2.13 Apparel and related products............ 36.4 35.8 36.4 36 2 69.87 73,75 75.14 74.88 1.93 2.06 2,07 2.08 Paper and allied products............................ 43.1 42.8 42.8 43,2 120.81 125.85 125.99 128,03 2.79 2.92 2.93 2.95 Printing, publishing, and allied industries. 38.6 38.0 38.3 38.2 125.90 127.25 127.97 130.42 3.22 3.34 3.35 3,37 Chemicals and allied products..................... 41.9 41.5 41.9 41 8 127 68 130 73 132.40 132 82 3.04 3.15 3,16 3,17 Petroleum refining and related industries.. 42.4 43.0 42.9 42.7 145.67 155.23 155.79 153.91 3.46 3.61 3.64 3.63 Rubber and misc. plastic products............ 41.4 41.9 41.8 41.7 113.13 119 99 120.12 121.11 2.70 2.85 2.86 2,87 Leather and leather products....................... 38.0 38.7 39.5 38.5 76.63 80.43 82.92 82.71 1.98 2.10 2.11 2,11 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

A-60 PRICES □ JANUARY 1968 CONSUMER PRICES (1957-59— 100) Housing Health and recreation Period it A em U s Food Total Rent H ow s o h n m ip e e r - ­ F c a o o u n i a d e l l l t e r G a i l n c e a i c d s t ­ y o n F p i a n i e u n s g r h d r s a ­ ­ ­ A u p p a p k n a e d r e e p l T p t r o i a r o n t n a s ­ ­ Total M c ic a e a r d e l ­ s P c o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o r h d v d e ­ r s tion tion ices 1929........................... 59.7 55.6 85.4 1 1 9 9 4 3 1 3 . . 4 5 5 1 . . 1 3 4 3 4 5 . . 2 3 61.4 6 6 4 0 . . 3 8 ............. ”45:2’ ............. ............. ..........”...50^' ‘ 47.6 * "57.3 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 I960. 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104.9 103.8 1961. 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103.0 105.0 107.3 111.3 104.6 107.2 104.6 1962. 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107.2 109.4 114.2 106.5 109.6 105.3 1963. 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107.1 1964. 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965. 109.9 108.8 108.5 108.9 III.4 105.6 107.8 103.1 106.8 in.t 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--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 H2.3 113.8 121.0 131.9 113.7 118.4 115.9 1967--Jan.................. 114.7 114.7 113.1 11.4 118.7 110.5 108.3 106.7 111.3 113.4 121.4 132.9 113.8 118.5 116.2 Feb................. 114.8 114.2 113.3 11.7 118.9 111.1 108.3 107.0 111.9 113.8 121.8 133.6 114.1 118.6 116.3 Mar................ 115.0 114.2 113.3 11.8 118.6 111.1 108.3 107.3 112.6 114.2 122.2 134.6 114.4 118.9 116.4 Apr................. 115.3 113.7 113.6 11.9 119.0 111.0 108.4 107.7 113.0 115.1 122.6 135.1 114.9 119.4 116.6 May........ 115.6 113.9 113.9 12.1 119.7 110.8 108.3 107.9 113.8 115.5 122.8 135.7 115.0 119.6 116.7 June............... 116.0 115.1 114.1 12.2 119.9 110.5 108.2 108.1 113.9 115.7 123.2 136.3 115.3 119.7 116.9 July................. 116.5 116.0 114.3 12.4 120.2 111.4 108.3 108.2 113.7 116.2 123.6 136.9 115.5 119.8 117.8 Aug................. 116.9 116.6 114.7 12.6 120.8 111.7 108.5 108.3 113.8 116.4 124.2 137.5 116.1 120.0 118.8 Sept................. 117.1 115.9 115.0 12.8 121.1 112.3 108.9 108.8 115.1 116.8 124.9 138.5 116.4 120.5 119.7 Oct.................. 117.5 115.7 115.3 13.0 121.5 112.5 108.9 109.1 116.0 117.7 125.5 139.0 116.5 121.4 120.3 Nov................. 117.8 115.6 115.5 13.2 121.9 112.7 109.0 109.3 116.6 118.3 126.2 139.7 116.9 122.0 121.0 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59- 100) Industrial commodities Proc­ All Farm essed Ma­ Period m c t o o i m e d s i ­ ­ p u r c o t d s ­ f f o a ee o n d d d s s Total t T e il t e 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 et e u c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s . t , ­ e c q a e h n u r i y n d ip ­ ­ F t e u u t r r c e n . , i ­ N t m m a o l i U e n n - c ­ - T e p t q r o i a u o r n n i t p a s ­ ­ ­ n c M e e o l i l u s 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 I960................................ 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101,3 102.9 100.1 101.4 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 96.5 100.0 100,0 102.9 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—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. 107.4 105.9 101.8 112.8 105.5 101.8 117.3 102.0 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 Sept.................... 106.2 98.4 112,7 106.5 102.0 114.4 104.5 97.9 98.2 108.7 104.1 109.6 111.9 101.2 104.7 n.a. 110.2 106.1 97.1 111.7 106.8 102.2 114.8 103.0 98.2 98.8 107.3 104.3 109.8 112.2 101.7 104.9 n.a. 110,5 Nov.................. 106.2 96.4 110.9 107.1 103,0 115.4 102.8 98.2 99.1 106.7 104.6 110.5 112.6 102.0 105,1 n.a. 110,6 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ PRICES A-61 WHOLESALE PRICES: DETAIL (1957-59- 100) 1966 1967 1966 1967 Group Group Nov. Sept. Oct. Nov. Nov. Sept. Oct. Nov. Farm products: Pulp, paper, and allied products: Fresh and dried produce........................ 104.2 92.2 91.6 102.9 Pulp, paper, and products, excluding Grains......................................................... 98.0 85.6 86.6 81.3 building paper and board................. 103,4 104.6 104.8 105.1 Livestock................................................... 98.4 103.5 101.8 96.2 Woodpulp................................................. 98.0 98.0 98.0 98,0 Live poultry............................................... 85.1 72.9 73.8 65.6 Wastepaper............................................... 92.7 75,4 76.6 76.5 Plant and animal fibers.......................... 70.9 72.4 72.4 74.9 Paper.......................................................... 108.5 110.9 111.2 111.2 Fluid milk................................................. 124.4 123.7 123.5 123.6 Paperboard............................................... 97.2 97.3 97.3 97.3 Eggs............................................................. 121.8 93.1 76.8 80.7 Converted paper and paperboard.... 103.1 104.8 104.9 105.5 Hay and seeds.......................................... 122.9 109.0 108.5 109.9 Building paper and board.................... 93.1 91.4 92.1 92.0 Other farm products............................... 98.7 97.7 97.4 100.9 Processed foods and feeds: Metals and metal products: Cereal and bakery products.................. 118.7 116.6 116.8 117.0 Tron and steel........................................... 102.8 104.0 103.9 104,3 Meat, poultry and fish............................ 104.2 108,6 104.7 102.2 Steelmill products.................................... 105.2 106,3 106.5 106,8 Dairy products......................................... 122.6 122,8 123.0 123.0 Nonferrous metals................................. 121.0 119.4 120.7 122.7 Processed fruits and vegetables............ 105.9 107.9 109.3 112.0 Metal containers..................................... 110.2 111.7 111.7 112.9 Sugar and confectionery........................ 112.1 113.8 113.9 113.9 Hardware.................................................. 111.5 115.3 115.4 115,7 Beverages and beverage materials.... 105.6 106.7 107.3 107.4 Plumbing equipment.............................. 110.5 110.2 110.2 110,2 Animal fats and oils................................ 105.6 79.6 76.3 70.8 Heating equipment................................. 93.4 92.7 92.9 93.3 Crude vegetable oils................................ 99.2 87.9 83.3 82.7 Fabricated*structural metal products. 104.8 105.6 105.7 105.9 Refined vegetable oils............................. 102.2 91.3 88,1 87.5 Miscellaneous metal products............. 113.1 114.1 114.1 114.1 Vegetable oil end products.................... 106.8 102.0 101.8 101.5 Miscellaneous processed foods............. 114.6 112.5 112.6 113.1 Manufactured animal feeds................... 128.4 121.5 120.6 118.8 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 120.4 122.2 122.3 123.9 Construction machinery and equip... 120.6 122.4 124.3 125.3 Cotton products....................................... 103.0 99.2 99,1 101.2 Metalworking machinery and equip.. 121.5 124.4 124.6 125,4 Wool products.......................................... 105.1 102.7 102.8 102.2 General purpose machinery and Man-made fiber textile products......... 87.7 86.3 86.9 88.1 equipment............................................. 112.2 114.0 114,4 114,7 Silk yarns................................................... 16t.l 175.7 179.5 183.9 Special industry machinery and Apparel........••••,••;................................ 105.5 107.4 107.5 108.0 equipment (Jan. 1961“ 100)....... 114 1 116.7 118.2 118.3 Textile housefurnishings......................... 105.3 106.8 107.4 107.3 Electrical machinery and equip........... 100 7 101 5 101 5 101.6 Miscellaneous textile products............. 119.1 115.6 115.9 114.5 Miscellaneous machinery..................... 107.8 109.7 109.9 110.4 Hides, skins, leather, and products: Furniture and household durables: Hides and skins........................................ 114.3 93.2 86.8 90.4 Leather........................................................ 114.1 105.3 104.7 106.5 Household furniture.............................. 111 5 113 0 113 4 114.3 Footwear................................................... 120.1 121.8 123.6 123.7 Commercial furniture.............. 108 0 112 0 112 0 112.3 Other leather products........................... 115.1 111.8 111 .9 111.9 Floor coverings....................................... 96 6 93 4 94 8 94.9 Household appliances............................ 89 2 90 3 90 5 90.8 Fuels and related products, and power: Home electronic equipment................. 83 8 81 6 82 t 82.2 Other household durable goods......... 113.8 118^2 118^9 118.9 Coal............................................................ 101.9 104.1 103.8 104.8 Coke............................................................ 112.0 112.0 112.0 112.0 Gas fuels (Jan. 1958“ 100).................... 130.6 132.6 132.7 132.8 Nonmetallic mineral products: Electric power (Jan. 1958- 100)........... 100.3 100.7 100.8 100.9 Crude petroleum...................................... 98.1 99.0 99.0 99.0 103 3 106 9 107 0 107 0 Petroleum products, refined.................. 101.3 103.9 101.0 100.4 Concrete ingredients.............................. 104*2 106*1 106*3 106 4 Concrete products.................................. 103^5 105^9 105^9 105^6 Chemicals and allied products: Structural* clay products excluding refractories........................................... 109 3 110 7 110 7 111.1 Industrial chemicals................................ 96.0 97,1 98.3 98.3 Refractories.............................................. 104^2 104 9 104 9 106 0 Prepared paint.......................................... 107.8 109.9 109.9 109.9 Asphalt roofing....................................... 97 6 95*1 95 1 99 4 Paint materials......................................... 90.4 90.6 91.0 91.4 Gypsum products................................... 103 5 100 7 103*9 103 9 Drugs and pharmaceuticals................... 95.0 93.5 93.6 93.7 Glass containers...................................... 101 1 101'1 101' I 101 1 Fats and oils, inedible,.................... 91.6 77.1 78.5 77.9 Other nonmetallic minerals. ............... 101*3 101.7 101 9 102.0 Agricultural chemicals and products.. 103.3 101,2 101.6 101.7 P O l t a h s e t r ic c r h e e s m in i s c a a l n s d a n m d a p te r r o ia d l u s. c .. t .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 0 0 6 , .9 2 1 8 0 7 8 . . 7 7 1 8 0 6 8 . . 1 8 1 8 0 6 8 . . 3 6 Transportation equipment: Rubber and products: Motor vehicles and equipment...... 101 7 101 5 103 7 104 0 Railroad equipment (Jan, 1961-100). 10L0 102^9 104^5 104^8 Crude rubber............................................. 87.9 83.9 84.2 83.8 T M ir is e c s e a ll n a d n e t o u u b s e r s u .. b ... b .. e .. r . .. p .. r .. o .. d ... u .. c .. t .. s . . . . .. .. . . .. .. . . .. .. . . .. . 9 9 3 9 . . 9 2 1 9 0 8 3 . . 7 7 1 9 0 8 4 . . 7 8 1 9 0 8 5 . . 7 6 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition......................................... 104.8 106.1 106.3 106.3 Lumber....................................................... 105.6 112.0 111.2 110,9 Tobacco products................................... 110.2 114.8 114.8 114.8 Millwork.................................................... 110.3 113.1 113.4 113,5 Notions..................................................... 100.8 100.8 100,8 102,1 Plywood..................................................... 86.9 95.7 90.2 87,8 Photographic equipment and supplies 109.8 111.6 113.6 113.6 Other wood products (Dec. 1966“ 100) .....1..0..1.....3 101.5 101,5 Other miscellaneous products............. 106.0 108.7 108.7 108.9 Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classiincorporate (1) new weights beginning with Jan. 1967 data an d (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-62 NATIONAL PRODUCT AND INCOME □ JANUARY 1968 GROSS NATIONAL PRODUCT (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 III IV I II HI Gross national product......................................... 103.1 55.6 124.5 284.8 560.3 590.5 632.4 683.9 743.3 748.8 762.1 766.3 775.1 791.2 Final purchases...................................................... 101.4 57.2 120.1 278.0 354.3 584.6 626,6 674.5 729.9 737.4 743.6 759.2 774.6 787.4 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 355.1 375.0 401.2 433.1 465.9 470.1 473.8 480.2 489.7 495.3 Durable goods................................................... 9.2 3.5 9.6 30.5 49.5 53.9 59.2 66.0 70.3 70.9 70.6 69.4 72.5 72.7 Nondurable goods............................................ 37.7 22.3 42.9 98.1 162.6 168.6 178.7 191.2 207.5 209.5 210.3 214.2 217.2 218.5 Services............................................................... 30.3 20.1 28.1 62.4 143.0 152.4 163.3 175.9 188.1 189.8 192.9 196.6 200.0 204.1 Gross private domestic investment..................... 16.2 1.4 17.9 54.1 83.0 87.1 94.0 107.4 118.0 116.4 122.2 110.4 105.1 112.2 Fixed investment.................................... 14,5 3.0 13.4 47.3 77.0 81.3 88.2 98.0 104.6 104.9 103.7 103.3 104.6 108.4 Nonresidential................................................ 10.6 2.4 9.5 27.9 51.7 54.3 61.1 71.1 80.2 81.2 82.8 81.9 81.5 82.8 Structures................................................... 5.0 .9 2.9 9.2 19.2 19.5 21.2 25.1 21.9 28.2 27.1 27.1 26.3 26.6 Producers* durable equipment.............. 5.6 1.5 6.6 18.7 32.5 34.8 39.9 46.0 52.3 53.1 55.1 54.2 55.2 56.2 Residential structures.................................. 4.0 .6 3.9 19.4 25.3 27.0 27.1 27.0 24.4 23.7 20.9 21.4 23.1 25.6 Nonfarm..................................................... 3.8 .5 3.7 18.6 24.8 26.4 26.6 26.4 23,8 23.2 20.4 20.9 22,5 25.0 Change in business inventories..................... 1.7 -1.6 4.5 6.8 6.0 5.9 5.8 9.4 13.4 11.4 18.5 7.1 0.5 3.8 Nonfarm......................................................... 1.8 -1.4 4.0 6.0 5.3 5.1 6.4 8.4 13.7 12.0 19.0 7.3 0.6 3.4 Net exports of goods and services..................... 1.1 .4 1.3 1.8 5.1 5.9 8.5 6.9 5.1 4.6 4.3 5.3 5.3 5.4 Exports............................................................... 7.0 2.4 5.9 13,8 30.3 32.3 37.1 39.1 43.0 43.7 44.0 45.3 45.1 45.6 Imports............................................................... 5.9 2.0 4.6 12,0 25.1 26.4 28.6 32.2 37.9 39.0 39.7 39.9 39.8 40.2 Government purchases of goods and services.. 8.S 8.0 24.8 37.9 117.1 122.5 128.7 136.4 154.3 157.7 161.7 170.4 175.0 178.2 Federal................................................................ 1.3 2.0 16.9 18.4 63.4 64.2 65.2 66.8 77.0 79.5 81.5 87.1 89.5 90.9 National defense.......................................... 13.8 14,1 51.6 50.8 50.0 50.1 60.5 63.0 65.6 10.2 72.5 73.3 Other............................................................... 3.1 4.3 11.8 13.5 15.2 16.7 16.5 16.6 15.9 16.8 17.0 17.6 State and local.............................................. 7.2 6.0 7.9 19.5 53.7 58.2 63.5 69.6 77.2 78.1 80.2 83.3 85.4 87.4 Gross national product in constant (1958) dollars............................................................. 203.6 141.5 263.7 355.3 529.8 551.0 581.1 616.7 652.6 654.8 661.1 660.7 664.7 672.0 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey of Current Business, July 1967, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1966 1967 1929 1933 1941 1950 1962 1963 1964 1965 1966 Item III IV I II HI National income..................................................... 86.8 40.3 104.2 241.1 457.7 481.9 518.1 562.4 616.7 622.1 634.1 636.4 641.6 653.4 Compensation of employees............................... 51.1 29.5 64.8 154.6 323.6 341.0 365.7 393.9 435.7 441.2 450.2 459.1 463.4 472.6 Wages and salaries........................................... 50.4 29.0 62.1 146.8 296.1 311.1 333.7 359.1 394.6 399.6 407.4 414.7 418.3 426.2 Private............................................................. 45.5 23.9 51.9 124.4 240.1 251.6 269.4 289.8 316.7 320.1 326,1 331.4 333.2 339.4 Military........................................................... .3 .3 1.9 5.0 10.8 10.8 11.7 12.1 14.7 15.1 15.8 16.1 16.2 16.3 Government civilian.................................... 4.6 4.9 8.3 17.4 45.2 48.6 52.6 57.1 63.2 64.3 65.6 67.3 68.9 70.6 Supplements to wages and salaries................ .7 .5 2.7 7.8 27.5 29.9 32.0 34.9 41.1 41.6 42.7 44.4 45.2 46.4 Employer contributions for social in­ surance ................................................... .1 .1 2.0 4.0 13.7 15.0 15.4 16.2 20.3 20.6 21.1 22.2 22.3 22.8 Other labor income..................................... .6 .4 .7 3.8 13.9 14.9 16.6 18.6 20.8 21.1 21.7 22.2 22.9 23.6 Proprietors* income.............................................. 15.1 5.9 17.5 37.5 50.1 51.0 52.3 56.7 59.3 59.2 58.6 57.8 57.8 58.8 Business and professional.............................. 9.0 3.3 11.1 24.0 37.1 37.9 40.2 41.9 43.2 43.3 43.4 43.2 43.4 43.8 Farm................................................................... 6.2 2.6 6.4 13.5 13.0 13.1 12.1 14.8 16.1 15.9 15.1 14.6 14.3 15.0 Rental income of persons.................................... 5.4 2.0 3.5 9.4 16.7 17.1 18.0 19.0 19.4 19.4 19.6 19.8 20.0 20.2 Corporate profits and inventory valuation adjustment...................................................... 10.5 -1.2 15.2 37.7 55.7 58.9 66.3 74.9 82.2 81.9 84.6 78.1 78.3 79.2 Profits before tax.............................................. 10.0 1.0 17.7 42.6 55.4 59.4 66.8 76.6 83.8 84,0 83.9 79.0 78.9 80.0 Profits tax liability........................................ 1.4 .5 7.6 17.8 24.2 26.3 28.3 31.4 34.5 34.6 34.6 32.5 32.5 32.9 Profits after tax............................................ 8.6 .4 10.1 24.9 31.2 33.1 38.4 45.2 49.3 49.4 49.3 46.5 46.5 47. / Dividends................................................... 5.8 2.0 4.4 8.8 15.2 16.5 17.8 19,8 21.5 21.6 21.2 22.2 23.1 23.4 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 16.0 16.6 20.6 25.4 27.8 27.8 28.2 24.2 23,4 23.6 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 .3 -.5 -.5 -1.7 -1.6 -2.2 .7 -.8 -.7 -.8 Net interest............................................................. 4.7 4.1 3.2 2.0 11.6 13.8 15.8 17.9 20.2 20.4 21.1 21.6 22.1 22.7 Note.—Dept, of Commerce estimates, Quarterly data are seasonally adjusted totals at annual rates. Sec also Note to tabic above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ NATIONAL PRODUCT AND INCOME A-63 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME SAVING (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1962 1963 1964 1965 1966 III IV I II IIP Gross national product........................................ 103.1 55.6 124.5 284.8 560.3 590.5 632.4 683.9 743.3 748.8 762.1 766.3 775.1 791.2 Less: Capital consumption allowances...... 7.9 7.0 8.2 18.3 50.0 52.6 56.1 59.9 63.5 63.9 64.7 65.5 66.4 67.6 Indirect business tax and nontax Hability....................................................... 7.0 7.1 11.3 23.3 51.5 54.7 58.4 62.2 65.1 65.9 67.0 67.9 69.1 70.2 Business transfer payments.................... .6 .7 .5 .8 2.1 2.3 2.5 2.6 2.7 2.7 2.8 2.8 2.8 2.8 Statistical discrepancy............................. .7 .6 .4 1.5 .5 -.3 -1.3 -2.0 -2.6 -3.2 -3.8 -4.0 -2.8 -1.2 Plus: Subsidies less current surplus of government enterprises.............................. -.1 .1 .2 1.4 .8 1.3 1.2 2.2 2.7 2.6 2.3 2.0 1.6 Equals: National income...................................... 86.8 40.3 104.2 241.1 457.7 481.9 518.1 562.4 616.7 622.1 634.1 636.4 641.6 653.4 Less: Corporate profits and inventory valuation adjustment.................................. 10.5 -1.2 15.2 37.7 55.7 58.9 66.3 74.9 82.2 81.9 84.6 78.1 78.3 79.2 Contributions for social insurance.... .2 .3 2.8 6.9 24.0 26.9 27.9 29.7 38.2 38.9 39.8 42.2 42.5 43.3 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 41.3 44.7 48.1 48.6 49.6 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 22.4 23.2 23.7 23.9 24.2 Dividends........................................ 5.8 2.0 4.4 8.8 15.2 16.5 17.8 19.8 21.5 21.6 21.2 22.2 23.1 23.4 Business transfer payments.................... .6 .7 .5 .8 2.1 2.3 2.5 2.6 2.7 2.7 2.8 2.8 2.8 2.8 Equals: Personal income..................................... 85.9 47.0 96.0 227.6 442.6 465.5 497.5 537.8 584.0 589.3 601.6 612.9 619.1 631.0 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 57.4 60.9 59.4 65.6 75.2 76.9 79.6 80.2 79.1 82.8 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 385.3 404.6 438.1 472.2 508.8 512.4 522.0 532.7 540.0 548.2 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 363.7 384.7 411.9 445.0 479.0 483.2 487.4 493.9 504.0 509.6 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 355.1 375.0 401.2 433.1 465.9 470.1 473.8 480.2 489.7 495.3 Consumer interest payments............. 1.5 .5 .9 2.4 8.1 9.1 10.1 11.3 12.4 12.5 12.9 13.1 13.3 13.5 Personal transfer payments to foreigners................................................ .3 .2 .2 .5 .5 .6 .6 .7 .6 .6 .6 .7 1.0 .8 Equals: Personal savin,....................................... 4.2 -.9 11.0 13.1 21.6 19.9 26.2 27.2 29.8 29.2 34.6 38.8 36.0 38.5 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 367.3 381.3 407.9 434.4 456.3 458.4 463.2 470.6 474.9 477.5 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 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.p Total personal income............................ 537.8 584.0 602.1 605.0 610.4 612.6 615.6 616.5 618.2 622.6 627.0 631.6 634.4 635.9 641.7 Wage and salary disbursements........... 359.1 394.6 407.6 410.0 413.8 414.2 416.2 416.7 417.2 420.9 423.4 426.7 428.5 429.4 435.0 Commodity-producing industries... 144.5 159.3 164.1 164.9 166.2 165.2 165.6 165.0 164.3 165.2 166.1 168.0 168.2 167.9 171.5 Manufacturing only........................ 115,6 128.1 132.8 132.8 133.7 132.7 132.9 132.5 132.2 133.0 133.2 135.3 135.4 134.9 138.0 Distributive industries....................... 86.9 93.9 96.5 97.2 98.4 98.6 99.1 99.1 99.3 100.4 101.3 101.8 102.1 102.6 103,6 Service industries................................ 58.3 63.5 65.6 65.9 66.4 66.9 67.6 68.2 68.6 69.5 69.6 70.1 70.8 71.1 71,7 Government......................................... 69.3 77.9 81.4 82.0 82.7 83.4 84.0 84.5 85.0 85.7 86.4 86.9 87.4 87.8 88.2 Other labor income................................ 18.6 20.8 21.7 21.9 22.1 22,2 22.4 22.6 22.8 23.1 23.3 23.6 23.8 24.0 24.3 Proprietors’ income................................ 56.7 59.3 58.6 58.8 58.3 57.8 57.4 57.7 57.8 57.9 58.4 58.8 59.2 59.1 59.1 Business and professional................. 41.9 43.2 43.5 43.5 43.3 43.2 43.1 43.3 43.4 43.6 43.7 43.8 43.9 44.0 44.1 Farm..................................................... 14.8 16.1 15.1 15.3 15.0 14.6 14.3 14.4 14.4 14.3 14,7 15.0 15.3 15.1 15.0 Rental income......................................... 19.0 19.4 19.6 19.7 19.7 19.8 19.9 20.0 20.0 20.1 20.2 20.2 20.3 20.3 20.4 Dividends................................................. 19.8 21.5 21.6 20.2 21.8 22,3 22.6 22.8 23.1 23.3 23.5 23.5 23.4 23.2 23.1 Personal interest income........................ 38.4 42.4 44.3 44.8 45.0 45.2 45.5 45.8 46.0 46.1 46.4 46.9 47.3 47.6 48.0 Transfer payments.................................. 39.7 43.9 47.4 48.5 49.7 51.1 51.7 51.0 51.5 51.6 52,2 52.4 52.5 52.8 52.6 Less: Personal contributions for social insurance....................... 13.4 17.9 18.7 18.8 20.0 20.0 20.1 20.1 20.1 20.3 20.4 20.6 20.6 20.6 20.8 Nonagricultural income.......................... 518.4 563.1 581.9 584.8 590.2 593.0 596.2 596.9 598.8 603.2 607.2 611.4 614.0 615.7 621.5 Agriculture income.................................. 19.3 20.9 20.2 20.3 20.2 19.6 19.5 19.5 19.5 19.4 19.8 20.2 20.4 20.2 20.2 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

A-64 FLOW OF FUNDS □ JANUARY 1968 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) Transaction category, 1965 1966 1967 or sector 1962 1963 1964 1965 1966 II III IV I II III IV I II I. Savins 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 1 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 .1 -.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 .3 -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 1.1 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 78.8 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 7.1 3.5 6.7 1.4 -4.5 8.2 14.9 2.8 7.° 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 .1 4.5 -2.3 -1.0 -.1 13.6 15.5 .8 -11.8 -2.5 16.9 22 23 Foreign borrowers................................ 2.1 3.3 4.4 2.6 1.4 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 1.1 .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 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 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 7- to 4-famlly 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. sectors........ 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 instit.......1..3....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 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 -1.1 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 II. 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 .1 2.0 .1 .4 .1 .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 11.9 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. For other notes see Oct. 1967 Bulletin, p. 1817. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ FLOW OF FUNDS A-65 PRINCIPAL FINANCIAL TRANSACTIONS {In billions of dollars) 1965 1966 1967 Transa o c r t i s o e n c t c o a r tegory, 1962 1963 1964 1965 1966 II III IV I II III IV I II I. Demand deposits and currency 1 Net incr. in banking eyatem 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 .1 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 II. 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 1.4 .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 ID. U.S. Govt, securities 19 Total net issues....................................... 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 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 .1 -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.C 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............................ .1 .3 .6 .8 .1 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 .1 -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................... 1.1 .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.C 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 l.C 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.C 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.C 5.1 12.3 11.0 11.C 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. For other notes see Oct. 1967 Bulletin, p. 1817. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-66 U.S. BALANCE OF PAYMENTS □ JANUARY 1968 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1966 1967 Item 1964 1965 1966 II III IV lr II' HP 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 1........................ 37,099 39,147 43,039 10,618 10,913 10,997 11,361 11,362 11,479 Merchandise.................................................................. 25,297 26,244 29,168 7,181 7,382 7,402 7,676 7,717 7,644 Military sales.................................................................. 747 844 847 222 206 210 339 336 205 Transportation............................................................. 2,324 2,390 2,589 642 661 650 669 660 665 Travel..................................................................... 1,207 1,380 1,573 383 408 408 422 381 417 Investment income receipts, private......................... 4,929 5,376 5,650 1,382 1,444 1,508 1,423 1,386 1,668 Investment income receipts, Govt............................. 460 512 595 153 143 146 155 161 166 Other services................................................................ 2,135 2,401 2,617 655 669 673 677 721 714 Imports of goods and services—Total........................... -28,637 -32,203 -37,937 -9,265 -9,762 -9,913 -10,004 -10,038 -10,110 Merchandise................................................................... -18,621 -21,472 -25,510 -6,225 -6,580 -6,680 -6,662 -6,558 -6,555 Military expenditures................................................... -2,861 -2,921 -3,694 -911 -953 -969 -1,045 -1,070 -1,072 Transportation.............................................................. -2,462 -2,674 -2,914 -709 -727 -756 -759 -729 -715 Travel.............................................................................. -2,211 -2,438 -2,657 -674 -672 -674 -685 -842 -903 Investment income payments.................................... -1,455 -1,729 -2,074 -471 -565 -563 -557 -547 -583 Other services................................................................ -1,027 -969 -1,088 -275 -265 -271 -296 -292 -282 Balance on^goods and services 1...................................... 8,462 6,944 5,102 1,353 1,151 1,084 1,357 1,324 1,369 Remittances and pensions................................................ -896 -1,024 -1,010 -245 -278 -246 -264 -395 -364 1. Balance on goods, services, remittances and pensions............................................................. 7,566 5,920 4,092 1,108 873 838 1,093 929 1,005 2. U.S. Govt, grants and capital flow, net.................... -3,560 -3,375 -3,446 -988 -759 -724 -1,201 -1,013 -973 Grants, 2 loans, and net change in foreign cur­ rency holdings, and short-term claims......... -4,263 -4,277 -4,680 -1,194 -1,177 -1,124 -1,419 -1,297 -1,211 Scheduled repayments on U.S. Govt, loans... 580 681 806 199 192 208 218 284 233 Nonscheduled repayments and selloffs............... 123 221 428 7 226 192 • 5 3. U.S. private capital flow, net..................................... -6,542 -3,743 -4,213 -1,135 -932 -1,165 -957 -1,137 -1,695 Direct investments................................................... -2,435 -3,418 -3,543 -1,006 -900 -1,003 -622 -648 -894 Foreign securities..................................................... -677 -758 -482 9 -50 -83 -263 -170 -434 Other long-term claims: Reported by banks.......................................... -941 -232 337 -27 73 168 150 163 -107 Reported by others............................................. -343 -88 -112 -51 -28 -16 -68 -165 36 Short-term claims: Reported by banks.......................................... -1,523 325 -84 -61 16 -124 -84 -389 -290 Reported by others....................................... -623 428 -329 1 -43 -107 -70 72 -6 4. Foreign capital flow, net, excluding change in liquid assets in U.S................................. 685 278 2,512 1,091 376 780 823 1,227 873 Long-term investments........................................... 109 -68 2,176 1,014 180 673 676 961 397 Short-term claims..................................................... 113 149 269 63 112 55 59 114 170 Nonliquid claims on U.S. Govt, associated with— Military contracts................................................ 228 314 341 45 106 146 103 166 -28 U.S. Govt, grants and capital.......................... 50 -85 -213 -1 -12 -136 -36 -14 11 Other specific transactions................................ 208 -25 -12 -4 13 -11 21 ♦ -12 Other nonconvertible, nonmarketable, me­ dium-term U.S. Govt, securities^............... -23 -7 -49 -26 -23 53 ♦ * 335 5. Errors and unrecorded transactions.......................... -949 -415 -302 -198 277 -148 -287 -553 154 Balances A. Balance on liquidity basis Seasonally adjusted (~ 14-24-3+44-5)....... -2,800 -1,335 -1,357 -122 -165 -419 -529 -547 -636 Less: Net seasonal adjustments......................... 27 530 47 -291 -325 572 Before seasonal adjustment.................................... -2,800 -1,335 -1,357 -149 -695 -466 -238 -222 -1,208 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted............................ -2,800 -1,335 -1,357 -122 -165 -419 -529 -547 -636 Plus: Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad............................... 1,454 116 2,697 492 1,062 989 -1,005 341 1,177 Other private residents of foreign countries.. 343 306 212 66 91 -54 80 11 95 International and regional organizations other than IMF............................................... -243 -291 -525 -355 -24 -108 -36 -78 -56 Less: Change in certain nonliquid liabilities to foreign central banks and govts................. 303 100 802 256 103 426 325 555 110 Balance B, seasonally adjusted............................. -1,549 -1,304 225 -175 861 -18 -1,815 -828 470 210 456 180 -533 -138 494 Before seasonal adjustment.................................... -1,549 -1,304 225 -385 405 -198 -1,282 -690 -24 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A-67 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1966 1967 Item 1964 1965 1966 II III IV Ir IP III* Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis......................... 2,800 1,335 1,357 149 695 466 238 222 1,208 Change tn U.S. official reserve assets (increase, -).......................................................... 171 1,222 368 68 82 -6 1,027 -419 -375 Gold...................................................................... 125 <1,665 571 209 173 121 51 15 92 Convertible currencies...................................... -220 -349 -540 -163 -426 -173 1,007 -424 -462 IMF gold tranche position.............................. 266 <-94 537 22 335 46 -3! -10 -5 Change in liquid liabilities to all foreign accounts 2,629 113 789 81 613 472 -789 641 1,383 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities 5.................................................... 376 122 -945 -176 -226 -176 72 46 125 Marketable U.S. Govt, bonds and notes 5. -58 -20 -245 6 -254 8 5 52 -6 Deposits, short-term U.S. Govt, securities, etc...............7..5..7............-..1...5...4.............-..5..8.2 206 -146 -31 -172 444 162 34 177 18 28 17 5 Commercial banks abroad.............................. 1,454 116 2,697 316 1,144 833 -755 161 1,263 Other private residents of foreign countries. 343 306 212 66 91 -54 80 11 95 International and regional organizations other than IMF.............................................. -243 -291 -525 -355 -24 -108 -36 -78 -56 B. Official reserve transactions...................................... 1,549 1,304 -225 385 -405 198 1,282 690 24 Change in U.S. official reserve assets (increase, —).......................................................... 171 1,222 568 68 82 -6 1,027 -419 -375 Change in liquid liabilities to foreign central banks and govts, and IMF (sec detail above under A.).............................................................. 1,075 -18 -1,595 54 -598 -199 -78 547 281 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations..................... 149 -38 788 284 88 373 304 584 -229 Of U.S. Govt................................................... 154 138 14 -21 23 30 29 -22 347 1 Excludes transfers under military grants. 3 With original maturities over 1 year. 2 Excludes military grants. 3 Includes certificates sold abroad by Export-Import Bank. Note.—Dept, of Commerce data. Minus sign indicates net payments 4 Reflects $259 million payment of gold portion of increased U.S. debits); absence of sign indicates net receipts (credits). subscription to IMF. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1964 1965 1966 1967 1964 1965 1966 1967 1964 1965 1966 1967 Month: Jan........... 2,040 3 1,228 2,274 2,620 1,418 31,199 1,948 2,296 622 3 28 327 325 Feb....................... 2,058 31,623 2,374 2,601 1,459 31,606 2,005 2,204 599 3 17 369 397 Mar...................... 2,075 3 2,739 2,569 2,569 1,518 3 1,861 2,068 2,185 557 3 878 501 384 Apr....................... 2,061 3 2,406 2,359 2,659 1,537 3 1,811 2,109 2,224 524 3 595 250 435 May..................... 2,047 3 2,299 2,411 2,545 1,530 31,797 2,063 2,119 517 3 503 348 426 June..................... 2,077 32,235 2,490 2,584 1,514 31,848 2,135 2,228 563 3 386 354 355 July...................... 2,119 2,300 2,456 2,587 1,573 < 1,742 2,205 2,235 546 4558 251 352 Aug...................... 2,100 2,329 2,455 2,561 1.608 1,825 2,113 2,114 492 504 342 447 Sept...................... 2,261 2,291 2,542 2,632 1,563 1,858 2,301 2,215 698 433 240 417 Oct....................... 2,156 2,349 2,583 2,383 1,551 1,885 2,262 2,216 60S 464 320 167 Nov...................... 2,206 2,378 2,486 2,671 1,698 1,941 2,192 2,376 3 508 438 295 295 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 34,666 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 7,780 4,744 <5,425 6,618 6,564 1,736 <1,495 834 1,215 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 ..............1..8.,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

A-68 U.S. GOLD TRANSACTIONS AND RESERVE ASSETS □ JANUARY 1968 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1966 1967 Area and country 1928 1959 I960 1961 1962 1963 1964 1965 1966 in IV I II III Western Europe: Austria............................... -84 -83 -1 -143 -82 -55 -ioa -25 Belgium.................................. -329 -39 -141 -144 -63 -40 -83 France.................................... -266 -173 -456 -518 -405 -884 -601 -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 -20 -30 United Kingdom......... -900 -350 -550 -306 -387 329 618 150 80 126 -20 3 -34 -77 Bank for Inti. Settlements. -178 -32 -36 -23 Other................................. -41 -48 -96 -53 -12 i -7 -37 -50 -1 -12 -18 20 19 Total.............................. -2,326 -827 -1,718 -754-1,105 -399 -88 -1,299 -659 -172 -92 -15 -44 -58 Canada...................................... 190 200 50 50 Latin American republics: Argentina................ 67 -50 -90 85 -30 -39 -28 -11 * * * Brazil...................................... "'-ii -2 -2 57 72 54 25 -3 -1 ♦ ♦ * * Colombia....................... -6 38 10 29 7 * Venezuela.............................. 65 —25 Other...................................... 2 -35 -42 -17 -5 -ii -9 -13 -6 -5 8 -2 13 6 Total.............................. 69 19 -100 -109 175 32 56 17 -41 -34 -3 -3 12 6 Asia: Japan...................................... -30 -157 -15 —56 Other...................................... -4 -28 -97 1-101 2 -93 12 3 -24 -30 -12 10 -20 -1 -1 Total.............................. -34 -186 -113 -101 -93 12 3 -24 -86 -12 10 -20 -1 -1 All other............................. -3 -5 -38 -6 -1 -36 -7 -16 -22 -4 * 2 -6 -1 Total foreign countries........... -2,294 -998 -1,969 -970 -833 -392 -36 -1,322 -608 -172 -86 -36 12 -S3 Inti. Monetary Fund............. 3 -44 4 300 150 ............. s-225 «177 <5 29 ...........«. .16 «5 6 * Grand total.................. -2,294-1,041 -1,669 -820 -833 -392 -36 -1,547 -431 -143 -86 -20 17 -53 1 Includes sales of $21 million to Lebanon and $48 million to Saudi million in 1956, and $300 million in 1959 and in 1960) with the right of Arabia. repurchase; proceeds from these sales invested by IMF in U.S. Govt, 2 Includes sales of $21 million to Burma, $32 million to Lebanon, and securities. $13 million to Saudi Arabia. s Payment to the IMF of $259 million increase in U.S. gold subscription, 3 Payment to the IMF of $344 million increase in U.S. gold sub­ less gold deposits by the IMF. scription, less sale by the IMF of $300 million (see note 4). 6 Represents gold deposit by the IMF; see note 1(b) to table below. 4 IMF sold to the United States a total of $800 million of gold ($200 4. U.S. GOLD STOCK, HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES, AND RESERVE POSITION IN IMF (In millions of dollars) Gold stock 1 Con­ Reserve Gold stock 1 Con­ Total vertible position Total vertible Reserve End of year reserve foreign in End of month reserve foreign position assets Total 2 Treasury currencies IMF 3 assets Total 2 Treasury c c u i r e r s e n 3 ­ IM in F 3 1957.......................... 24,832 22,857 22,781 1,975 1966—Dec.......1...4..,.8..82 13,235 13,159 1,321 326 1958.......................... 22,540 20;582 20,534 C958 1967—Jan.......1...4..,.1..96 13,202 13,157 645 349 1959.......................... 21,504 19,507 19,456 1,997 Feb............... 13,998 131161 13,107 480 357 I960.......................... 19^359 17i804 17,767 1,555 Mar.............. 13,855 13,184 13,107 314 357 Apr............... 13,906 131234 131109 315 357 1961.......................... 18,753 16,947 16,889 116 1,690 May............. 13,943 13.214 13,109 363 366 1962.......................... 17,220 16,057 15,978 99 1,064 June............. 14,274 13,169 13,iib 738 367 July.............. 14'.224 13', 136 13JO8 719 369 1963.......................... 16,843 15,596 15,513 212 1,035 Aug.............. 14,'605 13'075 13,008 1,162 368 1964......................... 16,672 15,471 15,388 432 '769 Sept.......1..4...'.6.49 131077 13,006 1.200 372 Oct.......1..4..1..9..27 13,039 12,905 1,509 379 1965.......................... 15,450 413,806 413,733 781 4 863 Nov.............. 15,438 12,965 12,908 2.092 381 1966.......................... 14,882 131235 13,159 1,321 326 Dec............... 14',830 12,065 11,982 2,345 420 i 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, see Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 3 For holdings of F.R, Banks only, see pp. A-12 and A-14. 3 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

JANUARY 1968 □ U.S. POSITION IN THE IMF A-69 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 position in IMF P s t u a d io b y o n m s o ll c s a f e r r n i i s p n t ­ s by s g N I a o M l e l e d t s F 1 D c f r o c u a i r r e w o e r s f i e i g n n 2 n g ­ s I i d M n o c l i F o l n a m n rs e e t D d ra o o w ll f a i n rs gs R d m o e e l i 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 n t p ( e e r n i d o d o ) f 3 1946—1937................................ 2,063 4 394 -45 -2,664 827 775 775 28 ,975 1938................................ -2 -252 271 17 792 29 ,958 1939................................ i,03i 2 -139 442 1,336 2,128 52 ,997 1960................................ 11 -149 580 442 2,570 62 ,555 1961................................ 150 16 -822 521 -135 2,435 59 ,690 1962................................ 17 -110 719 626 3,061 74 ,064 1963................................ 16 -194 207 29 3,090 75 ,035 1964................................ 525 18 -282 5 266 3,356 81 769 1963................................ 435 12 -282 165 3,521 85 3 863 1966................................ 776 680 15 -159 1 1,313 4,834 94 326 1967................................ 20 -114 -94 4,740 92 420 1966—Dec................................. 30 ....................-11 ................1..9. 4,834 94 326 1967—Jan................................... 3 -26 -23 4,811 93 349 Feb.................................. 3 -10 -7 4,804 93 357 Mar................................. 1 — 2 — 1 4,803 93 357 Apr................................. 4,803 93 357 May................................ 4 — 13 —9 4,794 93 366 June................................ 2 —3 — 1 4,793 ?3 367 July................................. 1 — 3 —2 4,791 93 369 Aug................................. 2 — 1 4,792 93 368 Sept................................. -1 -3 -4 4,788 93 372 Oct.................................. 3 -10 -7 4,781 93 379 Nov................................ 2 -4 -2 4,779 93 381 Dec................................. —39 — 39 4,740 92 420 1 Represents net IMF sales of gold to acquire U.S. dollars for use in < 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

A-70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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! Banks and other foreigners regional organizations s Non­ p E er o n i f o d d Total Total p G o d o s e i l ­ t d * i m n G v e o e n l s d t t ! ­ Total i i p t S n l b t i i o h a a e e b U r s r n b o y t m r k i e . r l S t d s e ­ ­ . ­ M n b G a U a o a o o b r n t n . e S v k l d d e s t e . * s , t ­ c m T o b a U n a a i o r u b b r n v e n r . l k S l a e y d e d e e r s , s ­ t t ­ ­ Total i i p S t b U n i t o h e a e U a b r s o n r b y t m r . k e i r S l t d e s - ­ . ­ M b n G o a U a o a n o b r n t . e v k S l d d e s t e . s * , t ­ Total i i n p S t b l i t i o h a e a U e b r s o n r b y t . m r k e i r S l t d s e ­ ­ . ­ « M n b G a U a o a o o b r n t n . e k S v l d d e s t e . * s , t ­ notes 1957............... 715,825 200 200 n.a. 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958............... 716,845 200 200 n.a. 8,665 n.a. n.a. 5,950 n.a. 552 n.a. 1959............... 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 ! 20,994 800 800 11,078 10,212 866 7,591 7,048 543 1,525 750 775 19608............. 21,027 800 800 11,088 10,212 876 7,598 7,048 550 1,541 750 791 19618............. 2 2 2 2 , , 8 9 5 3 3 6 8 8 0 0 0 0 8 8 0 0 0 0 1 11 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 94 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 51 1 6 6 1 1 , , 9 9 4 4 8 9 7 7 0 0 3 4 1 1 , , 2 24 4 5 5 24,068 800 800 12,748 11,997 751 8,359 7,911 448 2,161 1,250 911 1962!............. 24,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 1963 8............. 26,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 1964»............. 29,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965............... 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1966—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. 8, ( 1 2 2 9 9 , , 7 9 8 0 1 4 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 8 0 0 0 0 1 1 3 3 , , 6 6 5 00 6 1 1 2 2 , , 4 5 8 4 4 0 8 8 6 6 0 0 2 2 5 5 6 6 1 1 4 4 , , 3 2 8 0 7 8 1 1 3 3 , , 8 6 5 8 9 0 5 5 2 2 8 8 9 9 0 0 6 6 5 5 8 8 1 1 3 3 2 2 5 5 1967—Jan... 28,963 1,012 212 800 13,338 12,150 860 328 13,658 13,130 528 955 651 304 Feb... 28,916 1,013 213 800 13,355 12,162 865 328 13,693 13,163 530 855 608 247 Mar.. 28,992 1,028 228 800 13,561 12,368 865 328 13,533 13,003 530 870 638 232 29,381 1,030 230 800 14,106 12,877 901 328 13,382 12,853 529 863 630 233 29,613 1,030 230 800 14,383 13,118 917 348 13,359 12,830 529 841 607 234 June.. 29,633 1,033 233 800 14,103 12,812 917 374 13,705 13,167 538 792 562 230 July.. 30,099 1,033 233 800 14,174 12,883 917 374 14,056 13,515 541 836 609 227 Aug.. 30,836 1,033 233 800 14,076 12,716 911 449 14,941 14,393 548 786 579 207 Sept.. 31,219 1,033 233 800 14,381 12,971 911 499 15,068 14,516 552 737 529 208 Oct.”. 32,433 1,033 233 800 14,920 13,408 911 601 15,758 15,197 561 722 515 207 1 Represents liability on gold deposited by the International Monetary s 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. s 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 * 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 s 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 s 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. 1 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

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-71 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n e s E W u e r s o t p e e r n 1 Canada A re m L pu e a r b ti i l n c i a c s n Asia Africa cou O n t t h r e ie r s 2 1963.................................................................................................. 14.353 8,445 1,789 1,058 2,731 154 176 1964 15324 9^220 1,608 1,238 31020 160 178 1965................................................................................................. 15,372 8,608 1,528 1,497 3,300 194 245 1966—Oct.................................................................................... 13.966 7,687 1,196 1,110 3,464 282 227 Nov. ........................................ 14,018 7,758 1,212 i ’ioi 3 430 293 224 Dec.3............................................................................. (13,600 7,488 1,189 1,134 3,284 277 228 [13,656 7,488 1,189 1,134 3,340 277 228 1967—Jan....................................................................................... 13,338 7,236 1,186 1 139 3,260 276 241 Feb...................................................................................... 13^355 7,285 1’134 1’167 3,271 255 243 Mar..................................................................................... 13,561 7393 1,127 1’246 33i6 259 226 Apr...................................................................................... 14,106 7’,832 1,156 1 *455 3’,150 284 229 May..................................................................................... 14,383 8,017 1,154 1 508 M84 284 236 June................................................................................... 14,103 8,216 909 1 290 3 158 270 260 July.................................................................................... 14,174 8,299 909 1317 3’171 246 232 Aug..................................................................................... 14,076 8’360 912 1389 3^24 252 239 Sept.................................................................................... 14,381 8,649 903 1,186 3’173 223 247 Oct.”................................................................................... 14,920 9,065 968 1,233 3,173 225 256 i Includes Bank for International Settlements and European Fund. with those shown for the preceding date; figures on the second line are 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ comparable with those shown for the following date. pea 3 n D d a e t p a e n on d e t n h c e ie t s w in o L lin at e i s n s A ho m w e n ri c f a o . r this date differ because of changes of N fo o re t i e g .— n c D o a u t n a t r r ie ep s, r a es s e r n e t p o sh rt o e r d t - b te y r m ba n li k a s b i i n li t t i h es e t U o n t it h e e d o S f t f a ic t i e a s l , a in n s d ti f t o u r ti e o ig n n s in reporting coverage. Figures on the first line are comparable in coverage official holdings of marketable and convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. 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 pe n r d io o d f t G o r t a a n l d 1 Re­ Offi­ Europe Canada A L m a e t r i i n c a Asia Africa O c t o r t u i h e n e s r ­ Total 1 Intl.1 gional 2 Total cial3 Other 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 31563 41687 238 192 1965................................ 25,551 1'479 1,361 118 24'072 13'066 11,006 111627 2,574 41027 5,286 280 278 1966—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................. J [2 2 7 7 , , 6 7 0 2 1 4 1 1 , , 3 3 8 8 1 1 1 1 , , 2 2 7 7 0 0 1 1 1 1 1 1 2 2 6 6 / , 3 2 4 2 3 0 1 1 2 2 ' , 4 5 8 4 4 0 1 1 3 3 , , 6 8 8 5 0 9 1 13 4 , , 9 0 3 0 3 0 2 2 , , 5 5 0 0 9 2 3 3 , , 8 8 8 8 3 3 5 5' , , 2 2 5 9 2 9 3 3 8 8 7 5 2 2 6 6 6 6 1967—Jan...................... 26,731 1,451 1,298 153 25,280 12,150 13,130 13,204 2,358 3,918 5,125 390 285 Feb...................... 26,733 1 '408 1,277 131 25,325 12,162 13,163 13,321 2,227 3,971 5J43 379 284 Mar........... 26309 1,438 1,315 123 25,371 12,368 13,003 13,311 2,265 41063 51095 357 278 Apr..................... 27 ri'60 1,430 11311 119 25,730 12'877 12,853 13,406 2,298 41273 5,089 389 275 May................... 27,355 1,407 11287 120 25'948 13,118 12,830 13,424 2,329 4,366 5,160 392 277 June.................... 27,341 1,362 1,252 110 25,979 12,812 13,’167 13,899 2,083 4,148 5,171 376 303 July..................... 27,807 1,409 11296 113 26'398 12,883 13,515 14,141 2,274 4,151 5,210 339 284 Aug..................... 28'488 1,379 1,248 131 27,109 12,716 141393 141935 2,266 41019 5,246 366 277 Sept..................... 28.816 1,329 11205 124 27'487 12,971 14,516 15,116 2,329 41047 5,372 328 296 Oct.?.................. 29,920 1,315 11187 128 28,605 13,408 151197 151780 2,688 4,139 5,358 329 309 Nov.”................. 31,229 1,348 1,217 131 29,881 14,359 15,522 17,120 2,613 41229 5,289 324 306 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 a t n h 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 2,010 171 1,622 367 184 257 394 644 1965................... 11,627 250 398 305 108 997 1,429 151 1,620 339 323 322 183 647 1966—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 Sept....... 15,116 188 585 242 102 1,048 2,294 148 1,908 400 370 378 187 659 Oct.*... 15,780 176 618 211 98 1,080 2,221 161 1,993 494 379 409 158 634 Nov.”... 17,120 184 605 201 99 1,431 2,276 161 1,999 542 389 414 130 493 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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 er d i o o d f Sw la it n z d er­ Turkey U K d n i o i n t m e g d , Y sla u v g i o a ­ W E O u e t r s h o te e p r r e n « U.S.S.R. E E O a u s t r h t o e e p r r n e Total tlna 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—Nov....... 1,764 30 4,414 33 314 5 33 3,861 417 362 226 176 9 606 Dec. 5... fl,805 43 3,839 37 235 8 40 3,883 418 299 261 178 8 632 11,805 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 4,151 603 219 233 153 8 748 Aug.... 1,644 23 4,319 25 581 4 35 4,019 609 196 229 135 9 704 Sept..... 1,701 29 4,221 26 592 5 32 4,047 606 216 224 166 9 696 Oct.®... 1,629 27 4,843 25 585 6 33 4,139 591 263 222 151 10 689 Nov.®... 1,643 44 5,951 26 491 4 37 4,229 594 273 230 158 9 707 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 t n le h a s . m & A O L m a t e h t r i e n i r c a Total M C 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—Nov....... 152 236 161 694 517 174 108 24 5,425 36 135 167 60 102 Dec.5... ] ( 1 1 5 5 0 0 2 2 4 4 9 9 1 1 6 6 1 1 7 7 0 0 7 7 5 52 2 2 2 1 1 7 7 7 7 1 1 0 0 4 4 1 1 7 7 5 5 , , 2 29 5 9 2 3 3 6 6 1 1 4 4 2 2 1 1 8 7 0 9 5 5 4 4 1 1 1 1 7 7 1967—Jan......... 147 239 164 750 533 192 108 19 5,125 36 147 198 62 109 Feb........ 147 234 167 718 550 198 107 18 5,143 36 140 206 51 113 Mar.. . . 152 257 168 704 563 184 107 19 5,095 36 142 205 46 100 160 245 156 776 578 204 107 18 5,089 36 150 217 51 104 May.'.'.'.' 145 257 155 732 576 218 107 20 5,160 36 167 223 49 107 June.... 145 265 133 691 567 236 121 19 5,171 36 158 216 47 166 July.... 155 270 136 764 544 192 110 17 5,210 36 165 220 58 167 Aug....... 157 257 128 725 520 209 116 24 5,246 36 181 242 50 149 Sept....... 159 250 138 706 521 219 121 17 5,372 36 187 243 47 144 Oct.®... 164 250 131 778 515 234 123 18 5,358 36 194 233 59 150 Nov.®... 181 264 137 792 520 235 111 20 5,289 35 209 250 39 151 8c, Asia—Continued 8d. Africa 8e. Other countries E pe n r d i o o d f Japan Korea P p h in il e ip s ­ T w a an i­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a o ­ ) 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 i e c r a 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—Nov.......... 2,624 158 288 238 611 1,007 398 14 38 73 45 229 266 242 24 Dec.5.... /2,691 172 286 232 598 791 387 15 32 71 39 230 266 243 22 12,671 162 285 228 598 779 385 15 31 71 39 229 266 243 22 1967—Jan............ 2,567 171 282 235 610 708 390 13 33 61 33 250 285 262 23 Feb........... 2,512 181 271 232 635 766 379 13 31 62 22 251 284 258 26 Mar.......... 2,500 178 255 229 658 748 357 13 32 58 34 220 278 252 26 2,455 175 267 227 655 753 389 11 30 56 26 266 275 249 25 May......... 2,480 168 268 225 663 773 392 11 32 58 18 273 277 253 24 June......... 2,516 171 260 227 617 755 376 10 31 67 18 250 303 276 27 July.......... 2,459 190 276 227 663 749 339 13 35 63 15 214 284 255 28 Aug...... 2,443 185 269 230 685 775 366 17 33 73 21 223 277 252 25 Sept.......... 2,554 192 287 230 684 768 328 14 37 55 17 204 296 271 25 Oct.®........ 2,523 193 273 229 663 805 329 16 32 59 15 208 309 284 25 Nov.®. • •. 2,462 203 286 221 629 802 324 13 26 63 17 205 306 276 30 1 Data exclude the “holdings of dollars” of the International Monetary follows (in millions of dollars): Total 4-50; Foreign other 4-50; Europe Fund, — 17; Canada 4-1; Latin America 4-26; Asia 4-49; 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. <5 Includes Bank for International Settlements and European Fund. •♦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

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-73 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, (incl. 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 8 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 tim N e o ) t a e n .— d S U h .S or . t G -te o r v m t, s li e a c b u i r li i t t i i e e s s m ar a e t ur p i r n i g n c i i n p a n ll o y t d m e o p r o e s i t t h s an ( d 1 e m y a ea n r d fr a o n m d vel F o o p r m d e a n t t a B o a n n k lo n an g d -t e t r h m e I l n ia t b er il n it a ie ti s o , n s a e l e D T e a v b e l l e o p 1 m 4. ent Association. 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 in End of period Total 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 *................................... 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 i 574 1,594 87 332 59 1966—Nov.......................... 28,392 23,896 8,542 4,065 7,896 3,393 3,790 1,492 1,809 89 400 705 Dec. 5....................... / 1 2 2 7 7 , , 7 60 2 1 4 2 2 3 3 , , 3 2 7 6 1 7 8 8, ^ 3 3 7 1 1 4 4 ; ,0 0 5 0 0 0 ? 7 ; ,4 4 6 6 4 4 3 3 , , 3 3 7 8 6 2 3 3 , , 7 7 4 4 4 4 1 1, , 5 5 1 1 3 3 1 1 , , 8 8 1 1 9 9 8 8 3 3 3 3 2 29 9 6 5 0 8 9 9 1967—Jan............................ 26,731 22,505 7,663 3,970 7,386 3,486 3,712 1,460 1,825 80 347 514 Feb........................... 26.733 22,451 7,573 3,865 7,559 3,454 3,776 1 ,512 i;845 89 330 507 Mar.......................... 26,809 22,484 7,463 3,669 7 ;910 3,442 3,822 1 ;556 1,853 79 334 504 Apr........................... 27,160 22,830 7,469 3^89 8.277 3 395 3,783 1,535 1,845 73 330 546 May......................... 27,355 23,010 7,656 3 379 8 ;253 3,622 3,823 1,578 1,855 86 305 522 June......................... 27;341 23,020 7 874 3,617 7; 866 3 ;663 3; 825 1,615 1 ,844 68 297 496 July.......................... 27;807 23,492 8’213 3^60 7,891 3; 628 3',813 1,580 1,871 66 296 503 Aug.......................... 28,488 24,225 8.915 3 ;?45 7,896 3; 668 3,831 1,515 1,916 69 331 432 Sept.......................... 28,816 24,530 9,044 3,809 8 ;O35 3,642 3,907 1.579 1,937 76 315 379 Oct.”....................... 29,920 25,656 9; 846 3 ;959 8.117 3,734 3,982 1,577 1,989 84 332 282 Nov.”...................... 31,229 261926 9,994 3,880 9,442 3,609 4; 072 1,630 2,035 72 335 231 i 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 currencires —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 3 Principally bankers’ acceptances, commercial paper, and negotiable with those shown for the preceding date; figures on the second line are time certificates of deposit. comparable with those shown for the following date. 4 Includes revisions arising from changes in reporting coverage as Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.® Nov.p Europe: Austria............................... 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Denmark........................... 14 13 13 13 13 12 12 12 12 12 12 12 12 12 France................................ 7 7 7 7 7 7 7 7 7 6 6 6 7 7 Germany........................... 1 1 Italy.................................... 2 2 2 2 2 2 2 9 9 9 9 9 9 Netherlands...................... 6 5 5 5 5 5 5 5 4 4 4 5 5 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 2 2 Sweden.............................. 24 24 24 24 24 24 24 24 24 24 24 24 24 24 Switzerland............................ 89 93 93 92 93 93 92 91 90 88 87 87 91 91 United Kingdom................. 553 333 348 350 353 353 355 359 364 368 375 379 383 371 Other Western Europe.... 51 50 49 49 49 50 50 50 50 50 51 51 51 51 Eastern Europe.................... 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Total 807 591 605 606 610 609 611 613 624 626 633 637 646 634 Canada 676 698 692 692 695 695 722 719 716 717 717 718 716 715 Latin America: Latin American republics.. 6 7 8 8 8 8 7 7 6 6 6 6 6 6 Other Latin America.......... 21 18 19 18 18 18 18 18 18 18 18 18 18 18 Total 27 24 25 24 24 24 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 53 53 54 54 54 54 54 Total 51 51 50 50 51 50 50 62 62 63 63 63 63 63 Africa 16 15 15 15 15 15 23 28 28 28 22 22 22 19 Other countries Total foreign countries. 1,577 1,379 1,388 1,388 1,395 1,395 1,430 1,446 1,455 1,458 1,459 1,463 1,472 1,455 International and regional: International.................... 679 286 250 228 187 172 172 172 172 169 169 169 169 169 Latin American regional... 74 75 75 76 60 60 60 61 57 58 38 38 38 35 Other regional................. Total 752 361 325 304 247 232 233 234 230 227 207 207 207 204 Grand total 2,329 1,740 1,713 1,692 1,642 1,627 1,663 1,680 1,685 1,685 1,666 1,671 1,679 1,659 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 1 actions). year, and are based on a July 31, 1963 survey of holdings and regular 11. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total Canada1 Italy2 Sweden Total Austria Belgium Germany Italy Sw la it n z d er­ B.I.S. 1962.......................... 251 251 200 SI 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—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 t33 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 50 376 125 159 Oct............... 1,483 546 344 178 25 937 50 551 125 211 Nov.............. 1,563 516 314 177 25 1,047 50 60 601 125 211 Dec.............. 1,563 516 314 177 25 1,047 50 60 601 125 211 .................. 1 Includes bonds issued to the Government of Canada in connection through Oct. 1966; $144 million, Nov. 1966 through Oct. 1967; and $114 with transactions under the Columbia River treaty. Amounts outstanding million, Nov. 1967 through latest date. were $204 million, Sept. 1964 through Oct. 1965; $174 million, Nov. 1965 2 Bonds issued to the Government of Italy in connection with mili­ tary purchases in the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S, A-75 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 t r o a 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 in ic a Asia Africa cou O n t t h r e i r e s 1963......................................................................................... 5,975 1 939 638 1,742 2,493 104 58 1964.......................................................................................... 7,469 1,217 725 2,212 3,137 120 58 19641........................................................................................ 7,957 * 1,230 1,004 2,235 3,294 131 64 19652....................................................................................... ( 1 7 7 , , 6 7 3 3 2 4 ♦ 1 1 , , 2 2 0 0 1 8 5 6 9 6 3 9 2 2 ( ,2 2 9 88 3 3 3 , , 3 3 4 5 3 8 1 1 3 3 9 9 6 6 7 7 1966—Nov........................................................................... 7,547 1 1,417 598 2,354 2,984 134 60 Dec. 2......................................................................... J7,819 1,366 620 2,489 3,135 147 62 17.841 1 t ,367 608 2,452 3,206 147 62 1967—Jan............................................................................... 7,682 ♦ 1,283 597 2 448 3,166 128 60 Feb............................................................................. 7^676 1 1 J 238 626 2’465 3,152 132 62 Mar.............................................................................. 7^862 1 1252 614 2’508 3,278 148 62 Apr.............................................................................. 7^948 1 ’,268 625 2468 3,387 139 62 May............................................................................. 81102 I 1,298 594 2 516 5’497 133 63 June............................................................................. 8,253 1 1 ,’278 592 2’545 3.640 127 71 July.............................................................................. 8,233 ♦ 1,253 602 2,574 3*612 117 74 Aug............................................................................. 8*280 1 1,338 602 2 589 3*560 119 71 Sept............................................................................. 8^328 11309 562 2 579 3,692 115 71 Oct.”, ......................................................................... 8,263 * 1 ^254 575 2^552 3,704 108 70 Nov.”...................................................................... 8,343 * 1,202 569 2,603 3,791 107 71 12a. Europe End of period Total A tr u ia s­ g B iu e m l­ D m e a n rk ­ l F a i n n d ­ France F G e 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 a r y . t P u o g r a . l Spain S d w en e­ 1963.................................... 939 8 26 13 52 70 121 9 97 33 40 14 26 30 1964.................................... 1,217 10 42 28 85 79 159 9 109 39 43 19 40 47 19641.................... 1,230 11 48 26 84 81 152 10 114 36 43 23 40 49 19652......................... / U l . ,2 2 0 01 8 8 8 5 52 2 3 3 7 7 8 87 7 7 72 2 1 19 9 0 0 1 13 3 H 11 O 0 3 3 8 8 5 5 1 1 2 26 6 5 s 0 o 5 S 2 2 1966—Nov........................ 1,417 19 73 63 95 81 237 16 110 44 62 36 72 74 Dec.2..................... / (1 l , , 3 3 6 6 7 6 1 1 6 6 6 6 7 7 6 6 2 2 9 91 1 7 73 4 2 2 1 2 5 7 1 16 6 1 1 0 0 8 8 4 4 0 0 7 7 6 6 4 4 1 1 6 6 7 7 7 75 4 1967—Jan.......................... 1,283 19 69 42 90 60 191 15 84 36 64 41 75 70 Feb......................... 1,238 20 76 42 91 64 164 15 78 45 60 38 71 79 Mar........................ 1,252 19 73 44 92 66 170 14 70 44 62 37 69 79 Apr......................... 1,268 17 73 35 97 72 193 15 64 35 60 36 68 78 May..................... 1 298 18 67 34 100 66 192 17 73 34 60 34 71 73 June....................... 1 ^278 17 65 40 101 69 188 14 68 29 44 28 72 75 July........................ 1,253 13 61 37 97 73 198 15 68 31 50 27 68 62 Aug,..................... 1,338 16 65 37 93 71 184 15 61 30 51 26 61 68 Sept........................ 1,309 24 66 33 90 77 189 18 57 36 52 26 53 65 Oct. J’..................... 1.254 10 72 36 85 58 198 20 78 31 51 24 56 71 Nov.”.................... 1,202 10 63 48 83 71 170 18 69 49 57 14 53 67 12a. Europe—Continued 12b. Latin America End of period S l w a e n r i ­ t d z­ T k u e r y ­ 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 t r s h o te e p r r e n U.S.S.R. E E O u as t r h t o e e p r r e n Total A t r i g n e a n­ Brazil Chile l C b o i m 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 2,212 210 145 188 319 17 630 19641................................. 111 37 310 16 20 * 20 2,235 203 126 176 338 17 644 iyoj z............................ i 17 7 3 3 4 4 2 2 2 21 1 6 0 2 2 8 8 2 2 8 8 6 6 2 2 7 7 2 2 , , 2 2 8 9 8 3 2 2 3 3 2 2 9 9 4 4 1 17 7 4 4 2 27 7 0 0 1 1 6 6 6 6 6 7 9 4 1966—Nov........................ 94 45 221 19 37 2 17 2,354 177 109 141 294 16 724 Dec.2..................... ( ( 8 8 3 8 5 5 2 2 2 1 1 91 0 1 1 9 9 3 37 7 2 2 1 1 6 6 2 2 , , 4 4 8 5 9 2 1 1 9 8 3 7 1 1 1 1 2 4 1 1 5 5 8 9 3 30 0 5 8 1 16 6 7 7 6 5 7 7 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 1 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 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 July....................... 102 39 232 25 33 * 22 2,574 185 115 161 239 16 913 Aue. .. 119 47 321 22 28 ♦ 24 2,589 185 117 160 243 16 943 Sept........................ 110 49 284 .23 36 2 20 2,579 189 118 170 244 16 944 Oct.”..................... 117 34 240 19 33 * 19 2,552 199 121 172 228 16 929 Nov.”.................... 110 23 225 19 34 ♦ 19 2,603 208 136 175 227 16 910 For notes see the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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 Other Baha­ Neth. Other E p n er d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ r l e L ic p . s A ub . ­ m B & e a r s ­ A S n u t & i r l l i e ­ s A L m a ic t e a in 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 /59 170 45 220 250 53 14 23 3,343 1 29 17 2 86 19652................. 159 170 45 220 250 53 14 23 3,358 I 29 17 2 86 1966—Nov....... 76 197 43 222 263 56 17 18 2,984 1 31 13 5 98 I84 211 45 226 272 61 18 17 3,135 1 31 16 6 98 \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 I 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 1 35 14 5 94 June.... 69 285 64 210 248 78 17 18 3,640 36 17 5 88 July. ... 64 255 63 212 247 65 17 20 3,612 1 37 13 5 78 Aug.... 62 244 60 214 249 59 18 19 3,560 1 35 11 5 69 Sept....... 60 231 45 211 258 58 15 19 3,692 36 12 5 59 Oct.”... 53 236 43 211 266 49 9 19 3,704 1 36 11 6 59 Nov.1’... 55 248 46 211 284 54 10 24 3,791 2 29 11 6 58 12c. Asia—Continued lid. Africa 12e. Other countries End of period Japan Korea P p h in il e ip s ­ T w a an i­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) Mo co roc­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total 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 19652.......................... / 1 2 2 . , 7 7 5 6 1 8 2 2 2 2 2 23 3 1 0 1 1 5 5 8 8 2 2 J 1 0 0 7 8 1 1 3 3 9 9 1 2 2 3 3 4 4 4 4 3 3 6 6 0 0 6 67 7 5 5 2 2 1 1 5 5 1966-—Nov................ 2,389 26 211 15 72 122 134 2 45 30 57 60 50 10 Dec. 2............. / 1 2 2 . , 5 5 0 7 2 2 3 3 1 1 2 2 2 2 0 0 1 15 4 8 8 1 1 1 1 3 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 6 2 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 A M p a r y .. .. . .. . .. . .. . .. . .. . .. . . 2 2^ ,8 7 2 1 8 6 4 5 4 2 2 2 4 5 5 0 3 3 3 0 8 8 3 4 1 1 1 16 4 1 1 3 3 3 9 * 2 5 3 3 7 4 2 31 6 7 63 4 6 63 2 5 5 3 2 11 9 June........ 2'939 49 270 27 87 122 127 2 30 27 66 71 60 12 July............... 2'909 55 289 29 81 116 117 1 2 31 26 58 74 62 12 Aug................ 2,864 46 299 23 88 119 119 2 33 25 59 71 59 13 Sept......... 2,977 47 324 29 84 119 115 ♦ 3 35 18 60 71 58 13 Oct-p........ 2'986 48 323 27 84 124 108 2 35 18 53 70 57 13 Nov.”............. 3,062 46 326 31 90 131 107 1 2 37 14 54 71 58 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: Ioans 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

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-77 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 Total Official C t o o io u l n l t e ­ s c ­ fo m a r n a a c d c e c e s t , Other Total D w e i p th o s f i o t r s ­ g c o u c v o ri t m t , i e l s . s e , ­ Other Total i t n i s o t n it s u 1 ­ Banks Others st i a n n g d­ e o ig f n fo er r s ­ eigners a n n a d n c f e i­ paper 1963 5,975 5,344 1,915 186 955 774 832 2,214 384 631 432 157 42 1964 7,469 6,810 2,652 223 1,374 1,055 1,007 2,600 552 659 400 182 77 19642 7,957 7,333 2,773 221 1,403 1,150 1,135 2,621 803 624 336 187 102 1965 3 (7,632 7,158 2,967 271 1,566 1,130 1,268 2,501 422 474 325 54 95 \7,734 7,243 2.970 271 1,567 1,132 1,272 2,508 492 492 329 68 96 1966—Nov... 7,547 7,095 3,015 273 1,619 1,123 1,363 2,276 441 452 269 77 106 Dec. 3, ( ( 7 7 , ,8 8 4 1 1 9 7 7, , 4 3 2 9 1 9 3 3 , , 1 1 3 4 8 0 2 2 5 56 6 1 1 , , 7 7 3 3 9 9 1 1 , , 1 1 4 4 3 5 1 1 , , 3 2 6 8 7 8 2 2 , , 4 5 5 4 0 0 4 4 4 5 3 2 4 4 2 2 0 0 2 24 4 1 0 7 7 0 0 1 1 1 1 0 0 1967—Jan..., 7,682 7,313 2,996 258 1,592 1,146 1,288 2,575 453 369 213 73 83 Feb... 7,676 7,266 2,969 239 1,579 1,151 1,292 2,566 440 410 248 70 92 Mar.., 7,862 7,439 3,023 252 1,611 1,160 1,356 2,628 432 423 275 so 97 Apr... 7,948 7,528 2,969 271 1,536 1,162 1,352 2,739 467 421 256 77 88 May.. 8,102 7,689 2,927 246 1,557 1,125 1,385 2,914 462 413 263 62 89 June.. 8,253 7,854 2,917 253 1,553 1,112 1,430 3,028 478 400 262 54 83 July... 8,233 7,818 2,878 260 1,484 1,134 1,430 3,039 472 415 281 57 78 Aug... 8,280 7,769 2,919 286 1,498 1,135 1,440 2,944 466 510 368 70 73 Sept.. 8,328 7,906 3,046 270 1,595 1,181 1,452 2,929 479 422 291 48 83 Oct.*. 8,263 7,830 2,980 269 1,559 1,152 1,456 2,899 495 434 293 60 81 Nov.*. 8,343 7,933 3,034 264 1,556 1,204 1,508 2,942 450 410 269 71 70 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 Jine 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 Inter­ End of period Total F c o t o r r u i e e n i s g ­ n n re a g a t i i n o o d n n a a l l Total P L a o y a a n b s le in do A ll i a l rs P fo a c r y i u e n a r i b g ­ l n e U K d n i o i n t m g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n c a Japan O A t s h i e a r t O c 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 (306 200 106 3,971 3,777 195 * 77 1,611 273 1,162 385 238 227 1964 z............... 1310 204 106 4,285 3,995 288 1 87 1,632 327 1,275 430 255 278 1965................... 513 203 311 4,517 4,211 297 9 86 1,518 346 1,296 445 391 436 1966—Nov.... 1,191 681 510 4,296 4,026 254 17 72 1,222 314 1,373 339 421 555 Dec..... 1,493 987 506 4,180 3,915 247 18 70 1,155 314 1,346 326 408 562 1967—Jan......... 1,557 1,048 508 4,073 3,817 240 16 72 1,129 287 1,318 312 391 565 Feb........ 1,657 1,112 545 4,026 3,783 227 16 72 1,105 265 1,314 304 391 575 Mar.... 1,864 1,288 576 4.027 3,779 232 16 68 1,079 310 1,312 287 377 593 Apr........ 1,987 1,411 576 4,020 3,771 233 16 69 1,063 319 1,309 278 380 602 May.... 2,016 1,424 592 3,995 3,746 232 17 65 1,036 317 1,309 263 384 621 June.... 2,468 1,867 600 3,836 3,583 237 17 40 943 321 1,347 195 380 610 July.... 2,433 1,829 604 3.840 3,584 238 17 48 964 343 1,408 185 391 500 Aug....... 2,502 1,861 642 3,890 3,632 242 17 51 956 340 1,450 176 394 522 Sept.. . . 2,292 1,638 654 3.907 3,619 268 19 52 922 352 1,499 171 392 518 Oct.’... 2,261 1,631 630 3,982 3,694 272 15 53 870 365 1,536 204 404 548 Nov.1*... 2,236 1,576 659 3,958 3,674 267 17 51 837 365 1,554 193 412 546 1 Includes Africa. with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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 S e . c u c r o i r t p ie o s r a 2 te Foreign bonds Foreign stocks Net purchases or sales Period Inti, Foreign c P ha u s r e ­ s Sales c N ha e s t e p s u o r r ­ c P ha u s r e ­ s Sales c N ha e s t e p s u o r r ­ c P ha u s r e ­ s Sales c N ha e s t e p s u o r r ­ Total and sales sales sales 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—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 1 85 53 31 1967 Jan .................... -21 -21 ♦ * 571 527 44 112 264 -152 71 63 8 Feb..................... -50 -57 7 5 2 579 557 23 98 168 -69 66 55 11 Mar.................... -15 -14 * 1 -1 775 718 57 215 265 -50 75 68 7 Apr..................... 35 ♦ 35 35 700 563 137 154 259 -105 67 55 12 May................... 17 1 16 16 915 760 156 127 168 -41 68 65 3 June.................. 5 -3 9 -3 12 926 821 105 248 305 -57 71 95 -24 July.................... * -3 3 3 943 740 203 145 314 -169 68 74 — 6 Aug.................... -19 -20 1 -6 7 877 793 84 147 225 -78 67 106 -39 5 * 5 5 1,108 858 250 350 481 -131 81 125 —44 Oct * ............... 9 * 8 8 '957 1,141 -185 195 326 -131 77 91 — 14 Nov.*’................ -20 -4 -16 -3 -14 849 '885 -36 112 230 -118 75 89 -14 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 arc 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 i n t m g ed ­ 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 m i a c t a e in r ­ Asia Africa O c t o r t u h ie n e 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 (1) 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—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 1 19 -19 -4 -2 33 3 9 -1 * 2 Feb... 23 -28 50 7 4 -16 16 11 4 4 3 Mar. . 57 -8 65 10 5 12 18 45 ♦ 9 8 * * -5 fc’. 137 66 71 8 34 -3 13 51 8 5 * 1 72 156 14 141 9 20 67 29 126 21 -4 3 10 -1 June.. 105 64 41 6 21 8 3 37 63 5 -2 1 July.. 203 87 115 61 56 10 11 139 28 3 6 24 1 2 Aug. . 84 71 13 11 29 5 -4 41 25 * 9 1 8 Sept.. 250 142 108 37 49 15 24 125 42 15 8 * 1 60 Oct.*. -185 61 -246 13 48 -301 28 -213 8 24 3 ♦ -8 Nov.*. -36 145 -182 9 62 -221 32 -118 49 8 II * II 3 1 Not reported separately until May 1963. Note.—Statistics include State and local govt, securities, and securities 2 Includes Africa. of U.S. Govt, agencies and corporations that are not guaranteed by the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-79 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. DEPOSITS, U.S. GOVT. SECURITIES, LONG-TERM FOREIGN SECURITIES, BY AREA AND GOLD HELD AT F.R. BANKS FOR FOREIGNERS (In millions of dollars) (In millions of dollars) Total Period Total g I a i r n o n e n t d ­ i a , l c e t f o r o i u g i r e n n ­ s ­ r E o u p ­ e C a a d n a ­ A L i m a c t a i e n r­ Asia O c t o r t u i h e n e s r ­ E pe n r d i o o d f Deposits U.S A . G ss o e v ts t , i n cu E s a t r o m dy arked securities1 gold 1963..................... -1,044 -96 -949 -614 2-8 1964..................... -728 -140 -588 163 -670 25 1963............... 171 8,675 12,954 1965..................... -953 -164 -788 108 -659 -54 1964............... 229 8,389 12,698 1966..................... -685 -171 -514 214 -726 -2 1965............... 150 8,272 12.896 1966—Nov.........-54 6 -60 -8 2 1966—Dec... 174 7,036 12.946 Dec.......... 32 2 30 -10 15 1967—Jan........-.1.. 44 -52 -92 -7 -21 1967— F Ja e n b . . . . . . . 1 1 4 4 8 5 7 7 , , 1 3 4 3 1 4 1 1 2 2 , , 9 9 6 8 1 4 Mar... F ... e . b .. ......... - .- 4 5 3 9 -87 6 -6 4 5 4 - 2 2 8 11 1 M Ap ar r . . . . . . 1 1 3 2 1 3 7 7, , 9 5 1 4 2 7 1 12 2 , , 9 9 7 7 5 2 Apr.......... -93 -94 1 -5 1 May.. 193 7,799 12,972 May........ -39 -1 -38 -5 2 June.. 147 7,667 12,977 June........ -80 -9 -72 -44 -10 July... 117 7,665 12,976 July......... -175 -14 -162 -58 -18 Aug... 144 7,535 12,993 Aug......... -117 -43 -75 -31 2 Sept... 117 7,558 12,992 S O e c p t t .* ... . . . .. . .. . . - - 1 1 4 75 4 -7 1 2 3 - - 1 1 5 0 7 3 -9 5 2 2 O No ct v .. . . . . . 1 1 6 3 8 5 9 7 , ,8 4 6 5 1 6 1 13 3 , , 0 0 3 0 2 0 Nov.”. . . -133 -37 -96 2 Dec... 135 9,223 13,253 i Not reported separately until May 1963. 1 U.S. Treasury bills, certificates of indebtedness, 2 Includes Africa. notes, and bonds; includes securities payable in foreign currencies. Nora.—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

A^80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JANUARY 1968 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 June Sept. Dec. Mar. June June Sept. Dec. Mar. June Europe: Austria........................................................ 3 3 2 2 2 7 7 8 g Belgium*.......................... 32 30 32 34 28 45 42 53 Denmark..................................................... 2 2 3 5 8 8 10 14 (I 10 Finland........................................................ 1 1 1 6 4 4 5 France........................................... 48 57 62 61 55 94 102 110 122 102 Cermanv/ Fed. Rep. of.............. 70 81 78 81 85 98 120 127 122 122 3 2 2 2 2 18 i < Italy -............................. 27 52 54 62 65 111 107 101 Netherlands................................................ 65 67 68 80 78 42 42 48 45 Norway........................................................ 2 2 2 3 7 9 8 7 7 Portugal................................................ 6 6 9 7 5 8 6 7 6 7 Spflin......................................................... 23 25 27 30 36 63 51 61 76 62 Sweden......................................................... 12 14 17 19 21 30 27 36 18 18 Switzerland................................................. 61 58 58 47 51 20 22 18 26 24 Turkey......................................................... 4 4 2 2 2 6 6 6 7 9 United Kingdom....................................... 141 201 208 236 234 492 599 579 646 577 Yugoslavia ........................................... 1 2 1 1 • 2 ‘ 4 1 4 3 Other Western Europe.............. 2 3 4 5 5 9 9 11 12 13 Eastern Europe... .*................................ 1 1 1 1 1 6 3 2 3 5 Total.................................................... 502 611 631 678 682 1 070 1 185 1,212 1 296 1 158 Canada.................................... 117 138 146 173 199 550 509 489 482 494 Latin America: Argentina............................................. 5 6 6 3 4 35 37 39 39 35 Brazil............................................................ 11 9 10 11 10 78 73 65 61 60 Chile............................................................. 4 3 4 5 6 31 31 32 30 31 Colombia......................... 7 5 7 5 9 22 21 25 24 24 Cuba.................. ................................ * * * ♦ 3 3 3 2 2 Mexico......................................................... 10 10 11 16 16 79 78 95 96 125 Panama...................................................... 4 9 10 4 3 13 12 12 11 10 Peru............................................................. 5 6 7 6 5 28 28 31 31 29 Uruguay...................................................... 1 5 6 7 7 9 Venezuela................................................... 26 25 36 38 37 49 49 62 56 53 Other E.A. republics................................ 12 18 20 15 17 55 59 60 62 56 Bahamas and'Bermuda................... 2 3 7 5 8 11 18 12 21 Noth, Antilles & Surinam....................... 9 7 7 6 8 3 4 4 5 5 Other Latin America................................ 2 2 1 1 1 9 11 10 9 10 Total.................................................... 98 104 124 118 122 418 422 463 445 469 Asia; Hong Kong........................ 2 2 3 4 4 7 6 7 7 9 India............................................................ 20 17 17 13 15 29 32 34 33 35 Indonesia.................................................... 10 2 2 2 4 3 3 7 5 5 Israel............................................................ 2 2 2 * 1 4 5 5 5 4 Japan........................................................... 27 23 27 30 38 155 146 164 163 179 Korea,..,.................................................. 2 4 3 2 2 4 5 5 7 6 Philippines.................................................. 7 7 7 6 7 18 17 17 17 23 Taiwan......................................................... 6 7 4 5 2 4 5 7 12 10 Thailand.................................... 1 4 4 4 9 11 11 10 8 Other Asia................................................ 38 35 31 41 39 76 69 75 88 79 Total................................................... 116 101 100 107 114 309 299 331 346 357 Africa; Congo (Kinshasa!. ................. ♦ 1 1 1 2 2 2 2 South Africa.............................................. 11 10 17 5 8 18 17 24 16 16 U.A.R. (Egypt)......................................... 2 2 1 2 2 17 11 11 9 7 Other Africa............................................... 9 7 6 7 8 30 30 32 35 32 Total................................................... 22 19 24 15 19 66 59 69 62 58 Other countries: Australia..................................................... 35 51 58 52 49 45 57 58 54 44 All other..................................................... 5 4 6 6 7 10 7 8 8 6 Total................................................... 40 55 64 58 56 55 63 66 61 50 International and regional.......................... ♦ * * * ♦ 1 1 * ♦ * Orand total....................................... 894 1,028 1,089 1,148 1,193 2,469 2,539 2,631 2,692 2,587 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

JANUARY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-81 20. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millio ns of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l i l n a a b r l s e P fo a r y i e n a i b g l n e Total P d a o y i l n l a a b r l s e Deposits with currencies banks abroad Other in reporter’s name 1963—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.l......................................................................................... 626 479 148 2,188 1,778 199 211 1964—Mar........................................................................................ 631 475 156 2,407 1,887 239 282 Jung........................................................................................... 622 471 151 2,482 2,000 220 262 June2.............................................................................. 585 441 144 2,430 1,952 219 260 Sept........................................................................................... 650 498 152 2,719 2,168 249 302 695 553 141 2,776 2,306 189 281 DecJ......................................................................................... 700 556 144 2,853 2,'338 205 310 1965—Mar..................................................................... 695 531 165 2,612 2,147 189 277 June.......................................................................................... 740 568 172 2,411 1,966 198 248 Sept........................................................................................... 779 585 195 2,406 1,949 190 267 Dec............................................................................................ 807 600 207 2,397 2,000 167 229 Dec. 3....................................................................................... 810 600 210 2,299 1,911 166 222 1966—Mar........................................................................................... 849 614 235 2,473 2,033 211 229 June......................................................................................... 894 657 237 2,469 2,063 191 215 Sept........................................................................................... 1.028 785 243 2,539 2,146 166 227 Dec............................................................................................ 1^089 827 262 2,631 2,228 167 236 1967.—Mar........................................................................................... 1,148 864 285 2,692 2,249 192 252 June'.......................................................................................... 1,193 906 287 2,587 2,112 199 275 1 Includes data from firms reporting for the first time and claims pre­ of claims; for previous series the exemption level was $100,000. viously held but not reported. J Data differ from that shown for Dec. in line above because of changes 2 Includes reports from firms having $500,000 or more of liabilities or in reporting coverage. 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 O L t a h ti e n r Japan O A t s h i e a r Africa o A th l e l r America 1964—June......................... 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.i....................... 107 1,081 56 116 190 215 73 137 89 98 91 15 1965—Mar.......................... 115 1,075 35 121 203 220 74 137 81 96 91 18 June......................... 110 1,081 31 118 208 221 70 144 85 96 91 17 Sept...........*............ 120 1,101 31 116 230 217 74 138 89 96 91 18 Dec........................... 136 1,169 31 112 233 209 69 196 98 114 89 17 Dec. i....................... 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.............. 329 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 June.......................... 430 1,494 27 263 303 214 88 290 110 98 85 15 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-82 GOLD RESERVES □ JANUARY 1968 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ End of mated Mone­ United mated Afghan­ Argen­ Aus­ Aus­ Bel­ period total tary States rest of istan tina tralia tria gium 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--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............... 42,980 2,669 13,169 27,140 35 84 229 701 1,522 45 84 1,066 47 July................. 2,674 13,136 35 84 229 701 1,520 45 84 1,074 47 Aug................ 2,678 13,075 35 84 229 701 1,516 45 84 1,086 46 Sept................. ”42,950 2,679 13,077 *27,195 33 84 228 701 1,514 45 84 1,099 46 Oct.................. 2,680 13,039 33 84 230 701 1,512 45 84 1,104 46 Nov................. .................... 2,682 12,965 ............... 33 701 1,510 84 1,110 45 Ger- E pe n r d io o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India I n n e d si o a ­ Iran Iraq Israel Italy Japan Rep. of 1960. 78 107 41 1,641 2,971 76 247 58 130 98 * 2,203 247 1961. 88 107 47 2,121 3,664 87 247 43 130 84 10 2,225 287 1962. 57 92 61 2,587 3,679 77 247 44 129 98 41 2,243 289 1963. 62 92 61 3,175 3,843 77 247 35 142 98 60 2,343 289 1964. 58 92 85 3,729 4,248 77 247 141 112 56 2,107 304 1965. 35 97 84 4,706 4,410 78 281 146 110 56 2,404 328 1966--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................. 30 108 47 5,234 4,283 149 243 145 94 46 2,400 Sept................ 30 108 47 5,234 4,284 130 243 145 94 46 2,401 335 Oct.................. 31 108 47 5,234 4,281 132 243 145 94 46 2,398 Nov................ .................... 108 47 5,234 4,277 132 243 145 94 46 2,394 E pe n r d io o d f Kuwait a L n e o b n ­ Libya M c e o xi­ Mo c r o oc­ N la et n h d e s r­ Nigeria N w o a r y ­ P s a ta k n i­ Peru P p h in U e i s p- Po g r a t l u­ A S r a a u b d i i a I960. 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--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 \/ay............... 7 7 3 3 1 1 9 9 3 3 6 6 8 8 1 12 4 0 9 2 2 1 1 1 1 , , 7 73 3 1 1 2 2 0 0 1 1 8 8 5 5 3 3 5 45 5 4 51 9 6 6 5 5 1 4 6 6 9 9 June............... 89 193 68 160 21 1,731 20 18 53 30 53 661 69 July................. 89 193 68 159 21 1,731 20 18 53 25 54 668 69 Aug................ 89 193 68 157 21 1,731 20 18 53 20 56 686 69 Sept................ 89 193 68 155 21 1,731 20 18 53 20 57 690 69 Oct.................. 89 193 68 21 1,731 20 18 53 20 58 692 69 Nov................ 193 68 21 1,731 20 18 53 59 69 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JANUARY 1968 □ GOLD RESERVES AND PRODUCTION A-83 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 it n z d er­ Taiwan T la h n a d i­ Turkey (Egypt) U K d n i o n it m g e ­ d U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l i e . ­ ments 4 1960, 178 178 170 2,185 41 104 134 174 2,800 180 401 -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—Nov. 637 785 203 2,679 62 92 100 93 155 401 21 -275 Dec. 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 1967—Sept. 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 1,708 146 401 22 -266 July. 493 784 203 2,844 81 92 96 93 146 401 21 -271 Aug. 487 784 203 2,843 81 92 96 93 146 401 22 -375 Sept. 489 785 203 2,841 81 92 97 93 1,831 146 401 22 -364 Oct­ 518 785 203 2,840 81 92 97 93 401 22 -358 Nov. 558 203 2,753 92 97 93 140 401 -275 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 s 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 Congo tion 1 A So fr u i t c h a R de h si o a ­ Ghana s ( h K a i s n a ­ ) U St n a i t t e e s d C ad an a ­ M ic e o x­ r N a i g c u a a ­ Co b l i o a m­ India P p h in il e ip s ­ t A ra u l s ia ­ ot A he ll r I960...................................... 1,175.0 748.4 19.6 30.8 11.1 58.8 162.0 10.5 7.0 15.2 5.6 14.4 38.0 53.6 1961...................................... 1,215,0 803.0 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37.7 53.9 1962..................................... 1,295.0 892.2 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 r15.8 32.0 ’■61.3 1966—Oct............. 89.7 2.1 9.1 .5 .9 .4 1.4 2.5 Nov......................... 90.8 2.1 8.7 .6 .8 .3 1.4 2.4 Dec.......................... 87.7 1.9 21.6 9.6 .4 .7 .3 1.5 2.7 1967—Jan............................ 89.5 8.7 .6 .9 2.4 Feb........................... 87.8 8.9 .6 .8 2.1 Mar.......................... 89.5 21.1 9.1 .6 .5 2.2 Apr........................... 89.1 8.9 .6 .8 2.6 May......................... 91.2 8.9 .6 .8 2.3 June......................... 89.1 9.1 ,4 .8 31.7 2.6 July........................ 88.9 8.4 .7 Aug.................. 90.5 8.3 .8 Sept.......................... 89.9 8.0 .8 Oct........................... 84.1 8.6 .7 1 Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from 3 Data for Jan.-June. the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-84 MONEY RATES □ JANUARY 1968 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Dec. 31, 1966 Rate Country 1967 as of Dec. 31 Per Month 1967 cent effective Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Argentina................................. 6.0 Dec. 1957 6.0 Austria,.................................. 4.5 June 1963 4.25 3.75 3,75 Belgium.................................... 5.25 June 1966 5.0 4.75 4.5 4.25 4.00 4.0 Brazil......................................... 12.0 Jan. 1965 12.0 Buraia....................................... 4.0 Feb, 1962 ,...«, 4.0 Canada 1.................................. 5.25 Mar. 1966 5.0 4.5 5.0 6.0 6.0 Ceylon...................................... May 1965 5.0 Chile 2...................................... 15,84 July 1966 15.84 Colombia.................................. 8.0 May 1963 8.0 Cotta Rica............................... 3.0 Apr. 1939 3.0 Denmark.................................. 6.5 June 1964 7.5 7.5 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...................................... 6.87 Nov. 1966 6.50 6.25 5.88 5.56 5.44 5.50 5.56 5.50 5.53 5.94 r7.75 7.75 Israel......................................... 6.0 Feb. 1955 6.0 Italy........................................... 3.5 June 1958 3.5 Jamaica.................................... 5.5 July 1966 5.0 6.0 6.0 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 Mar. 1961 7.0 Nicaragua................................ 6,0 Apr. 1954 6,0 Norway.................................... 3,5 Feb. 1955 3.5 Pakistan.................................... 5.0 June 1965 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 June 1966 5.5 5.0 6.0 6.0 Switzerland.............................. 3.5 July 1966 3.0 3.0 Taiwan 4.................................. 14.04 July 1963 13.3 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 6.0 58.0 8.0 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 bonk 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—3 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 1. 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; 3 Effective Nov. 9 the rate was 6.5 per cent. 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

JANUARY 1968 □ MONEY RATES; ARBITRAGE A-85 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la it n z d er­ Month 3 T m r b e o i a l n s ls u t , h r s y 1 D m a o d y n a - e y t y o 2 ­ B 3 a a m a c n n c o c k e n e p e s t r t h . ­ s s ’ 3 T r m b e i o a U s n s u t , r h y s D m a d o y a n - y e t o y ­ a B l d l a o ep n w o o k n a s e n i r t c s s e ’ D m a o d y n a - e y t y o ­ * T 6 r d b e 0 a i a - l y s l 9 s s u 0 * , r y D m a o d y n a - e y t y o s ­ T 3 r m b e i a o l s n ls 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 u e 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—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 4.46 2.75 2.56 4.49 3.83 4.00 Sept.............. 4.50 4.24 5.54 5.34 4.58 3.50 4.34 2.75 3.13 4.48 3.69 4.00 Oct............... 4.91 4.82 5.79 5.60 4.81 3.71 2.75 2.19 4.50 4.60 3.75 Nov........ 5.15 4.69 6.88 6.55 5.80 4.90 2.75 2.31 4.50 3.23 3.75 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,’* * 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 Net P i r + em ) i o u r m Net Date q K ( u U b i a o n U n d a t g s . i j a S t d . i t e s . t o i ) d o o m n U S n ta i t t e e s d L S ( o f p n a o r d v e f o o a r d n ) d f . ( p o ( i — s r + o c w u ) ) o a n u o o r d n n r d t . i L n ( o c f n e a o n d v f t o o i r n v e ) C q a u A n i o n a t s e d d C a ana q d A u a b o U d a t j . a s . S i t s . i t o o n U St n a i t t e e s d C S ( a t p a n o r v a e f o d a r d a ) C d f ( d o a i - s o r n c w ) l a l o a d a u o r i r n n a s d n t i C n ( a c f e a n o n v a f o t d i r a v ) e 1967 Aug. 4............... 5.21 4.13 1.08 -.57 I-.51 4.32 4.22 4.13 + .09 -.65 -.56 5.21 4.13 1.08 -.65 F.43 4.33 4.23 4.13 + .10 -.75 -.65 18................ 5.16 4.17 .99 -.69 F.30 4.33 4.23 4.17 + .06 -.97 -.91 25................ 5.16 4.34 .82 -.75 K07 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 4.47 .86 -.69 + .17 4.76 4.65 4.47 + .18 -.90 -.72 13................ 5.33 4.58 .75 -.75 .00 4.91 4.79 4.58 + .21 -1.16 -.95 20................ 5,58 4.53 1.05 -.96 -1(-.09 4.96 4.84 4.53 + .31 -1.44 -1.13 27................ 5.58 4.50 1,08 -.98 K10 4.97 4.85 4.50 + .35 -1.44 -1.09 Nov. 3................ 5.73 4.56 1.17 -1.11 + .06 4.94 4.82 4.56 + .26 -1.01 -.75 9................ 6.10 4.62 1.48 -1.35 + .13 4.96 4.82 4.62 + .20 -.90 -.70 17................ 6.26 4.57 1.69 -1.64 + .05 4.97 4.85 4.57 + .28 -.90 -.62 24................ 7.40 4.76 2.64 -.99 +1.65 5.39 5.27 4.76 + .51 -.81 -.30 7.33 4.93 2.40 -1.17 +1.23 5.46 5.33 4.93 + .40 -.17 + .23 8................ 7.32 4.89 2.43 -2.83 -.40 5.55 5.45 4.89 + .56 -.32 + .24 15................ 7.27 4.98 2.29 -4.72 2.43 5.82 5.69 4.98 + .71 -.50 + .21 22. 7.26 4.92 2,34 -4.67 2.33 5.97 5.84 4.92 + .92 -.48 + .44 29................ 7.26 4.98 2.28 -2.83 -.55 5.95 5.82 4.98 + .84 -.49 + .35 1968 7.26 4.95 2.31 -2.50 -.19 5.92 5.79 4.95 + .84 -.32 + .52 Note.—Treasury bills’. All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 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

A-86 MONEY RATES □ JANUARY 1968 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) 1962. .90802 223.73 3.8685 2.0093 93.561 21.034 14.490 .3107 1963. .72447 223.10 3.8690 2.0052 92.699 21.015 14.484 131.057 1964. .71786 222.48 3.8698 2,0099 92.689 20.988 14.460 31.067 1965. .59517 222.78 3.8704 2.0144 92.743 20.959 14.460 31.070 1966. .48690 2223.41 3111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967. .30545 111.25 3.8688 2.0125 92.689 20.501 14.325 <29.553 1966--Dec......................................................... .40387 ................... 111.16 3.8651 1.9987 92.319 20.926 14.484 31.062 1967--Jan.......................................................... .40348 111.20 3.8648 2.0005 92.623 20.927 14.468 31.062 Feb......................................................... .39934 111.32 3.8653 2.0100 92.529 20.932 14.444 31.062 Mar........................................................ 5.31033 111.41 3.8679 2.0116 92.415 20.938 14.467 31.062 Apr......................................................... .28501 111,52 3.8679 2.0121 92.378 20.954 14.472 31.063 May....................................................... .28505 111.43 3.8686 2.0145 92.400 20.946 14.453 31.062 June....................................................... .28506 111,20 3.8698 2.0143 92.544 20.917 14.439 31,062 July........................................................ .28501 111.05 3.8714 2.0147 92.766 20.903 14.413 31.062 Aug........................................................ .28505 110.97 3.8728 2.0148 92.937 20.900 14.403 31.062 Sept........................................................ .28507 110.90 3.8720 2.0146 92.989 20.894 14.417 31.062 Oct......................................................... .28503 110.88 3.8693 2.0147 93,149 20.889 14.416 ‘26.672 Nov.,.................................................... .28488 111.28 3.8656 2.0145 93.004 619.806 14.028 23.714 Dec........................................................ .28449 111.85 3.8696 2.0138 92.559 16.660 13.404 23.716 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 r o el u a n n d d ) ( I l t i a ra ly ) J ( a y p en a ) n ( M do a l l l a a y r - ) M (p e e x s i o c ) o ( e g N r u l i e a l t d n h e d ­ r s ) 1962. 20.405 25.013 21.026 280.78 16107 .27712 32.757 8.0056 27.755 1963. 720.404 25.084 20.966 280.00 16087 .27663 32.664 8.0056 27.770 1964. 20.404 25.157 20.923 279.21 16014 .27625 32.566 8.0056 27.724 1965. 20.401 25.036 20.938 279.59 .16004 .27662 32.609 8.0056 27.774 1966. 20.352 25.007 816.596 279.30 .16014 .27598 32.538 8.0056 27.630 1967. 20.323 25.084 13.255 275.04 .16022 .27613 32.519 8.0056 27.759 1966--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 Oct..................................... • ............... 20.393 24.974 13.215 278.32 16061 .27622 32.432 8.0056 27.809 Nov............................................... 20.401 25.072 613.236 9266.18 .16059 .27621 1032.472 8.0056 27.805 Dec........................................................ 20.381 25.094 13.334 240.63 .16019 .27633 32.687 8.0056 27.804 Period (pou N n e d w ) Zeal ( a d n o d llar) N (k o r r o w n a e y ) (e P s o g c r a u t l d u o ­ ) ( A S r o a fr u n i t d c h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( e S f r r w l a a i n n t c z d ) ­ ( U p K d o n i o u i n m t n g e d d - ) 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 1967. 11276.69 12131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 1966--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 39.03 1.6636 19.337 23.089 279.10 Feb........................................................ 276.65 13.980 3,4783 39.18 1.6634 19.353 23.061 279.41 Mar....................................................... 276,86 13,984 3.4811 39.29 1.6633 19.367 23.079 279.63 Apr........................................................ 277,15 13.993 3.4858 39.44 1.6631 19.397 23.126 279.92 May...................................................... 276.92 13.990 3.4830 39.32 1.6631 19.399 23.169 279.69 June...................................................... 276.35 13.992 3.4810 39.04 1.6632 19.415 23.166 279.12 July....................................................... ^276.12 12(37.97 13.986 3.4788 38.85 1.6634 19.412 23.128 278.73 Aug....................................................... 137.89 13.981 3.4766 38.75 1.6637 19.394 23.061 278.53 Sept...................................................... 137.81 13.978 3.4755 38,66 1.6640 19.381 23.027 278.37 Oct......................................................... 137.78 13.979 3.4736 38.64 1.6635 19.341 23.035 278.32 Nov....................................................... 128.28 13.985 3.4654 39.05 91.5831 19.326 23.146 9266.18 Dec........................................................ 111.95 13.996 3.4817 39.84 1.4236 19.341 23.158 240.63 1 A new markka, equal to 100 old markkaa, was introduced on Jan. 1. 9 Quotations not available Nov. 21, 1967. 1963. to Quotations not available Nov. 21-27, 1967. 2 Based on quotations through Feb. 11, 1966. 11 Based on quotations through July 7, 1967. 3 Effective Feb. 14, 1966. Australia adopted the decimal currency 12 Effective July 10, 1967, New Zealand adopted the decimal currency system. The new unit, the dollar, replaces the pound and consists of 100 system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. cents, equivalent to 10 shillings or one-half the former pound. * Effective Oct. 12, 1967. the Finnish markka was devalued from 3.2 to 4.2 markkaa per U. S. dollar. Quotation not available Oct. 12. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, 5 Quotations not available Mar. 7-14, 1967. the following countries devalued their currency in relation to the U.S. * Quotations not available Nov. 21-24, 1967. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. The averages ’ Effective Jan. 1, 1963, the franc again became the French monetary for Nov. 1967 reflect the extent of the devaluation. unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. Averages of certified noon buying rates in New York for cable transfers. 8 Effective June 6. 1966. the Indian rupee was devalued from 4.76 to -or description of rates and back data, see “International Finance,’’ 7.5 rupees per U.S. dollar. Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Wm. McC. Martin, Jr., Chairman J. L. Robertson, Vice Chairman George W. Mitchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer William W. Sherrill Robert C. Holland, Secretary of the Board Daniel H. Brill, Senior Adviser to the Board' Robert Solomon, Adviser to the Board Merritt Sherman, Assistant to the Board Howard H. Hackley, Assistant to the Board Charles Molony, Assistant to the Board Robert L. Cardon, Assistant to the Board Clarke L. Fauver, .Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF BANK OPERATIONS Robert C. Holland, Secretary John R. Farrell, Director Kenneth A. Kenyon, Deputy Secretary John N. Kiley, Jr., Associate Director Elizabeth L. Carmichael, Assistant Secretary M. B. Daniels, Assistant Director Arthur L. Broida, Assistant Secretary James A. McIntosh, Assistant Director Karl E. Bakke, Assistant Secretary P. D. Ring, Assistant Director Robert P. Forrestal, Assistant Secretary DIVISION OF EXAMINATIONS LEGAL DIVISION Frederic Solomon, Director David B. Hexter, General Counsel Brenton C. Leavitt, Deputy Director Thomas J. O’Connell, Deputy General James C. Smith, Assistant Director Counsel Lloyd M. Schaeffer, Chief Federal Reserve Jerome W. Shay, Assistant General Counsel Examiner Wilson L. Hooff, Assistant General Counsel Frederick R. Dahl, Assistant Director Jack M. Egertson, Assistant Director DIVISION OF RESEARCH AND STATISTICS Thomas A. Sidman, Assistant Director Daniel H. Brill, Director Charles C. Walcutt, Assistant Chief Federal Albert R. Koch, Deputy Director Reserve Examiner J. Charles Partee, Associate Director Stephen H. Axilrod, Adviser DIVISION OF PERSONNEL ADMINISTRATION Lyle E. Gramley, Adviser Edwin J. Johnson, Director Kenneth B. Williams, Adviser John J. Hart, Assistant Director Stanley J. Sigel, Associate Adviser Tynan Smith, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES Murray S. Wernick, Associate Adviser Joseph E. Kelleher, Director James B. Eckert, Assistant Adviser Harry E. Kern, Assistant Director Peter M. Keir, Assistant Adviser Louis Weiner, 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 John E. Reynolds, Associate Director A. B. Hersey, Adviser DIVISION OF DATA PROCESSING Reed J. Irvine, Adviser Lawrence H. Byrne, Jr., Director Samuel I. Katz, Adviser Lee W. Langham, Assistant Director Ralph C. Wood, Adviser John H. Rhinehart, Assistant Director A-87 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-88 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 Simmen, first federal reserve David M. Kennedy, seventh federal district RESERVE DISTRICT George S. Moore, second federal John Fox, eighth federal reserve district RESERVE DISTRICT Harold F. Still, Jr., third federal Philip H. Nason, ninth federal reserve district RESERVE DISTRICT John A. Mayer, fourth federal Jack T. Conn, tenth federal RESERVE DISTRICT RESERVE DISTRICT J. Harvie Wilkinson, Jr., fifth federal Robert H. Stewart, III, eleventh federal RESERVE DISTRICT RESERVE DISTRICT George S. Craft, sixth 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

A-89 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President vi ui anvii Deputy Chairman First Vice President in charge of branch Zip code Boston..................... ...02106 Howard W. Johnson 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 Albert G. Clay W. Braddock Hickman Logan T. Johnston Walter H. MacDonald Cincinnati.......... ...45201 Graham E. Marx Fred O. Kiel Pittsburgh.......... ...15230 F. L. Byrom Clyde E. Harrell Richmond................ ...23213 Wilson H. Elkins Edward A. Wayne Robert W. Lawson, Jr. Aubrey N. Heflin Baltimore...............21203 E. Wayne Corrin Donald F. Hagner Charlotte............ ...28201 James A. Morris Edmund F. MacDonald Atlanta........................30303 Edwin I. Hatch Harold T. Patterson John C. Wilson Monroe Kimbrel Birmingham.......35202 Mays E. Montgomery Edward C. Rainey Jacksonville........ ...32201 Castle W. Jordan Thomas C. Clark Nashville............ ...37203 Alexander Heard Robert E. Moody, Jr. New Orleans.......70160 George B. Blair Morgan L. Shaw Chicago................... ...60690 Franklin J. Lunding Charles J. Scanlon Elvis J. Stahr Hugh J. Helmer Detroit................ ...48231 Max P. Heavenrich, Jr. 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 Eugene A. Leonard 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 Joseph M. Ray Fredric W. Reed Houston.............. ...77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio.......78206 Francis B. May Carl H. Moore San Francisco............94120 S. Alfred Halgren Eliot J. Swan A. B. Merritt Los Angeles...........90054 J. L. Atwood Paul W. Cavan Portland.................97208 Robert F. Dwyer William M. Brown Salt Lake City......84110 Peter E. Marble Arthur L. Price Seattle....................98124 Robert D. O’Brien William R. Sandstrom 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. 2166-69 of the December 1967 Bulletin. (Stamps and coupons not accepted). The Federal Reserve System—Purposes and Supplement to Banking and Monetary Statis­ Functions. 1963. 298 pp. tics. Sec. 1. Banks and the Monetary System. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. Annual Report. 59 pp. $.50, Sec. 5. Bank Debits. 1966. 36 Federal Reserve Bulletin. Monthly. $6.00 per pp. $.35. Sec. 6. Bank Income, 1966. 29 pp. annum or $.60 a copy in the United States and $.35. Sec. 9. Federal Reserve Banks. 1965. 36 its possessions, Bolivia, Canada, Chile, Colom­ pp. $.35. Sec. 10. Member Bank Reserves and bia, Costa Rica, Cuba, Dominican Republic, Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ Ecuador, Guatemala, Haiti, Republic of Hon­ rency. 1963. 11 pp. $.35. Sec. 12. Money Rates duras, Mexico, Nicaragua, Panama, Paraguay, and Securities Markets. 1966. 182 pp. $.65. Peru, El Salvador, Uruguay, and Venezuela; 10 Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ or more of same issue sent to one address, $5.00 national Finance. 1962. 92 pp. $.65. Sec. 16 per annum or $.50 each. Elsewhere, $7.00 per (New) Consumer Credit. 1965. 103 pp. $.65. annum or $.70 a copy. Bank Mergers & the Regulatory Agencies: Federal Reserve Chart Book on Financial and Application of the Bank Merger Act of Business Statistics. Monthly. Annual sub­ 1960. 1964. 260 pp. $1.00 a copy; 10 or more scription includes one issue of Historical Chart sent to one address, $.85 each. Book. $6.00 per annum or $.60 a copy in the Banking Market Structure & Performance in United States and the countries listed above; Metropolitan Areas: A Statistical Study 10 or more of same issue sent to one address, of Factors Affecting Rates on Bank Loans. $.50 each. Elsewhere, $7.00 per annum or $.70 1965. 73 pp. $.50 a copy; 10 or more sent to a copy. one address, $.40 each. Historical Chart Book. Issued annually in Sept. Farm Debt. Data from the 1960 Sample Survey Subscription to monthly chart book includes of Agriculture. 1964. 221 pp. $1.00 a copy; 10 one issue. $.60 a copy in the United States and or more sent to one address, $.85 each. countries listed above; 10 or more sent to one Merchant and Dealer Credit in Agriculture. address, $.50 each. Elsewhere, $.70 a copy. 1966. 109 pp. $1.00 a copy; 10 or more sent to Treasury-Federal Reserve Study of the Gov­ one address, $.85 each. ernment Securities Market. Pt. I. 1959. 108 Monetary Theory and Policy: A Bibliography. pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. Part I—Domestic Aspects. 137 pp. $1.00 a copy; Set of 3, $2.50; individual books $1.00 each. 10 or more sent to one address, $.85 each. Flow of Funds in the United States, 1939-53. Regulations of the Board of Governors of 1955. 390 pp. $2.75. the Federal Reserve System. 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 The Federal Funds Market. 1959. Ill pp. Governors, as of June 30, 1967. $2.50. $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. $4.00. U.S. Treasury Advance Refunding. June 1960- 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 The Federal Reserve Act, as amended through sent to one address, $.85 each. 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. A-91 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-92 FEDERAL RESERVE BULLETIN □ JANUARY 1968 STAFF ECONOMIC STUDIES Nonlocal Competition for Time Deposits in Isolated One- and Two-Bank Towns, by Studies and papers on economic and financial sub­ Bernard Shull. Nov. 1967. jects that are of general interest in the field of economic research. Interest Rates and the Demand for Con­ sumer Durable Goods, by Michael J. Ham­ burger. Dec. 1967. Summaries only printed in the Bulletin. Printed in full In the Bulletin. (Limited supply of mimeographed copies of full (Reprints available as shown in following list.) text available upon request for single copies.) REPRINTS Measures of Industrial Production and Final Demand, by Clayton Gehman and Cornelia (From Federal Reserve Bulletin unless preceded Motheral. Jan. 1967. by an asterisk.) Firms’ Demands For Money: The Evidence Adjustment for Seasonal Variation. Descrip­ From the Cross-Section Data, by William J. tion of method used by Board in adjusting eco­ Frazer, Jr. Jan. 1967. nomic data for seasonal variations. June 1941. H PP- The Effect of Credit Conditions on State and Local Bond Sales and Capital Outlays Seasonal Factors Affecting Bank Reserves. Feb. 1958. 12 pp. Since World War II, by Paul F. McGouldrick. Feb. 1967. Liquidity and Public Policy, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. Investment by Manufacturing Firms: A Quar­ terly Time Series Analysis of Industry Seasonally Adjusted Series for Bank Credit. Data, by Robert W. Resek. Mar. 1967. July 1962. 6 pp. Individuals as a Source of Loan Funds for Interest Rates and Monetary Policy, Staff State and Local Governments, by Helmut Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Wendel. Apr. 1967. Industrial Production—1957-59 Base. Oct. Variable-Rate Mortgages, by Robert Moore 1962. 10 pp. Fisher. May 1967. Flow of Funds Seasonally Adjusted. Nov. 1962. 15 pp. The Financing of Capital Investment in the USSR, by Paul Gekker. June 1967. Recent Changes in Liquidity, Staff Paper by Daniel H. Brill. June 1963. 10 pp. Federal Fiscal Policy and Aggregate De­ mand, 1956-1966, by Helen B. Junz. June Measures of Member Bank Reserves. July 1967. 1963. 14 pp. Businesses View Banking Services: A Survey Measuring and Analyzing Economic Growth, Staff Paper by Clayton Gehman. Aug. 1963. of Cedar Rapids, Iowa, by Lynn A. Stiles. July 1967. ' 14 pp. Changes in Banking Structure, 1953-62. Sept. The Impact of Monetary Variables: A Selec­ 1963. 8 pp. tive Survey of the Recent Empirical Lit­ erature, by Michael J. Hamburger. July 1967. Economic Change and Economic Analysis, Staff Paper by Frank R. Garfield. Sept. 1963. Empirical Literature on The U. S. Balance 17 pp. of Trade, by Charles K. Harley. July 1967. The Open Market Policy Process. Oct. 1963. The Boom in Office Buildings, by Robert 11 PP- Moore Fisher. Aug. 1967. New Series on Federal Funds. Aug. 1964. Customers View Bank Markets and Services: 31 PP- A Survey of Elkhart, Indiana, by George G. Yield Differentials in Treasury Bills, 1959­ Kaufman. Aug. 1967. 64, Staff Paper by Samuel I. Katz. Oct. 1964. A Test of the Deposit Relationship Hypoth­ 20 pp. esis, by Neil B. Murphy. Sept. 1967. Research into Banking Structure and Com­ Economic Trends in Latin America in the petition. Nov. 1964. 17 pp. 1960’s, by Yves Maroni. Oct. 1967. Bank Credits to Foreigners. Mar. 1965. 10 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 A-3.) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 68—A hguorht 4— A segap ot era secnerefeR( Acceptances, bankers’, 11, 29, 31 Deposits—Continued Agricultural loans of commercial banks, 22, 24 Federal Reserve Banks, 12, 79 Arbitrage, 85 Postal savings, 10, 17 Assets and liabilities (See also Foreign liab. & claims): Subject to reserve requirements, 16 Banks, by classes, 18, 22, 24, 31 Discount rates, 9, 84 Banks and the monetary system, 17 Discounts and advances by Reserve Banks, 4, 12, 14 Corporate, current, 43 Dividends, corporate, 42, 43 Federal Reserve Banks, 12 Dollar assets, foreign, 69, 74 Automobiles: Consumer instalment credit, 48, 49, 50 Earnings and hours, manufacturing industries, 59 Production index, 52, 53 Employment, 56, 58, 59 Bankers’ balances, 23, 25 Farm mortgage loans, 44, 45 (See also Foreign liabilities and claims) Federal finance: Banks and the monetary system, 17 Cash transactions, 34 Banks for cooperatives, 33 Receipts and expenditures, 35 Bonds (See also U.S. Govt, securities): Treasurer’s balance, 34 New issues, 39, 40, 41 Federal funds, 8, 22 Yields and prices, 29, 30 Federal home loan banks, 33, 45 Business expenditures on new plant and equipment, 43 Federal Housing Administration, 30, 44, 45, 46 Business indexes, 56 Federal intermediate credit banks, 33 Business loans (See Commercial and industrial loans) Federal land banks, 33 Federal National Mortgage Assn., 33, 46 Capacity utilization, 56 Federal Reserve Banks: Capital accounts: Condition statement, 12 Banks, by classes, 18, 23, 27 U.S. Govt, securities held, 4, 12, 14, 36, 37 Federal Reserve Banks, 12 Federal Reserve credit, 4, 12, 14 Central banks, foreign, 82, 84 Federal Reserve notes, 12, 15 Certificates of deposit, 27 Federally sponsored credit agencies, 33 Coins, circulation, 15 Finance company paper, 29, 31 Commercial and industrial loans: Financial institutions, loans to, 22, 24 Commercial banks, 22 Float, 4 Weekly reporting banks, 24, 28 Flow of funds, 64 Commercial banks: Foreign currency operations, 12, 14, 68, 69, 74 Assets and liabilities, 18, 22, 24 Foreign deposits in U.S. banks, 4, 12, 17, 23, 26, 79 Consumer loans held, by type, 49 Foreign exchange rates, 86 Deposits at, for payment of personal loans, 21 Foreign liabilities and claims: Number, by classes, 18 Banks, 70,71,73, 75, 77, 79 Real estate mortgages held, by type, 44 Nonfinancial concerns, 80 Commercial paper, 29, 31 Foreign trade, 67 Condition statements (See Assets and liabilities) Construction, 56, 57 Gold: Consumer credit: Certificates, 12, 15 Instalment credit, 48, 49, 50, 51 Earmarked, 79 Noninstalment credit, by holder, 49 Net purchases by U.S., 68 Consumer price indexes, 56, 60 Production, 83 Consumption expenditures, 62, 63 Reserves of central banks and govts.. 82 Corporations: Stock, 4, 17, 68 Sales, profits, taxes, and dividends, 42, 43 Gross national product, 62, 63 Security issues, 40, 41 Security prices and yields, 29, 30 Hours and earnings, manufacturing industries, 59 Cost of living (See Consumer price indexes) Housing starts, 57 Currency and coin, 4, 10, 23 Currency in circulation, 4, 15, 16 Income, national and personal, 62, 63 Customer credit, stock market, 30 Industrial production index, 52, 56 Instalment loans, 48, 49, 50, 51 Debits to deposit accounts, 14 Insurance companies, 32, 36, 37, 45 Debt (See specific types of debt or securities) Insured commercial banks, 20, 21, 22 Demand deposits: Interbank deposits, 11, 18,23 Adjusted, banks and the monetary system, 17 Interest rates: Adjusted, commercial banks, 14, 16, 23 Business loans by banks, 28 Banks, by classes, 11, 18, 23, 26 Federal Reserve Bank discount rates, 9 Subject to reserve requirements, 16 Foreign countries, 84, 85 Turnover, 14 Money market rates, 29, 85 Deposits (See also specific types of deposits): Mortgage yields, 30, 47 Accumulated at commercial banks for payment Time deposits, maximum rates, 10 of personal loans, 21 Yields, bond and stock, 29 Adjusted, and currency, 17 International capital transactions of the U.S., 70 Banks, by classes. 11,18, 23, 26. 31 International institutions, 68, 69, 82, 84 A-94 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES A-95 Inventories, 62 Reserves—Continued Investment companies, issues and assets, 41 Federal Reserve Banks, 12 Investments (See also specific types of investments): Member banks, 4, 6, 11, 16, 23 Banks, by classes, 18, 22, 25, 31 Residential mortgage loans, 44, 45, 46, 47 Commercial banks, 21 Retail credit, retail sales, 48, 56 Federal Reserve Banks, 12, 14 Life insurance companies, 32 Sales finance companies, loans, 48, 49, 51 Savings and loan assns., 32 Saving: Flow of funds series, 64 Labor force, 58 National income series, 63 Loans (See also specific types of loans): Savings and loan assns., 32, 37, 45 Banks, by classes, 18, 22, 24, 31 Savings deposits (See Time deposits) Commercial banks, 21 Savings institutions, principal assets, 31, 32 Federal Reserve Banks, 4, 12, 14 Securities (See also U.S. Govt, securities): Insurance companies, 32, 45 Federally sponsored agencies, 33 Insured or guaranteed by U.S., 44, 45, 46 International transactions, 78, 79 Savings and loan assns., 32, 45 New issues, 39, 40, 41 Silver coin and silver certificates, 15 State and local govts.: Manufacturers: Capacity utilization, 56 Deposits of, 23, 26 Production index, 53, 56 Holdings of U.S. Govt, securities, 36, 37 Margin requirements, 10 New security issues, 39, 40 Member banks: Ownership of obligations of, 22, 25, 31, 32 Assets and liabilities, by classes, 18, 22 Prices and yields of securities, 29, 30 Borrowings at Reserve Banks, 6, 12 State member banks, 20, 21 Deposits, by classes, 11 Stock market credit, 30 Number, by classes, 19 Stocks: Reserve position, basic, 8 New issues, 40, 41 Reserve requirements, 10 Prices and yields, 29, 30 Reserves and related items, 4, 16 Mining, production index, 53, 56 Tax receipts. Federal, 35 Money rates (See Interest rates) Time deposits, 10, 11, 16, 17, 18, 23, 26 Money supply and related data, 16 Treasurer’s account balance, 34 Mutual funds (See Investment companies) Treasury cash, Treasury currency, 4, 15, 17 Mutual savings banks, 17, 18, 20, 31, 36, 37, 44 Treasury deposits, 4, 12, 34 National banks, 20, 21 Unemployment, 58 U.S. balance of payments, 66 National income, 62, 63 National security expenditures, 35, 62 U.S. Govt, balances: Nonmember banks, 20, 21, 22, 23 Commercial bank holdings, 23, 26 Consolidated monetary statement, 17 Member bank holdings, 16 Open market transactions, 11 Treasury deposits at Federal Reserve Banks, 4, 12, 34 Payrolls, manufacturing, index, 56 U.S. Govt, securities: Personal income, 63 Bank holdings, 17, 18, 22, 25, 31, 36, 37 Postal Savings System, 10, 17 Dealer transactions, positions, and financing, 38 Prices: Federal Reserve Bank holdings, 4, 12, 14, 36, 37 Consumer and wholesale commodity, 56, 60 Foreign and international holdings, 12, 74, Security, 30 78,79 Production, 52, 56 International transactions, 74, 78 Profits, corporate, 42. 43 New issues, gross proceeds, 40 Open market transactions, 11 Real estate loans: Outstanding, by type of security, 36, 37, 39 Banks, by classes, 22, 24, 31, 44 Ownership of, 36, 37 Delinquency rates on home mortgages, 47 Prices and yields, 29, 30, 85 Mortgage yields, 30, 47 United States notes, 15 Nonfarm mortgage foreclosures, 47 Utilities, production index, 53, 56 Type of holder and property mortgaged, 44, 45, 46 Veterans Administration, 44, 45, 46 Reserve position, basic, member banks, 8 Reserve requirements, member banks, 10 Reserves: Weekly reporting banks, 24 Central banks and govts., 82 Commercial banks, 23, 25 Yields (See Interest rates) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 68—A hguorht 4—A segap ot era secnerefeR( Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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