Federal Reserve Bulletin, 1968-02

FEDERAL RESERVE BULLETIN FEBRUARY 1968 BOARD OF GOVERNORS □ THE FEDERAL RESERVE SYSTEM □ WASHINGTON, D.C. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN NUMBER 2□VOLUME 54 □ FEBRUARY 1968 CONTENTS 101 Recent Credit and Monetary Developments 113 Staff Economic Studies: Summary 115 The Price of Gold is not the Problem 122 Statements to Congress 137 Directors of Federal Reserve Banks and Branches 151 Record of Policy Actions of the Federal Open Market Committee 167 Law Department 242 Announcements 243 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-92 Board of Governors and Staff A-93 Open Market Committee and Staff; Federal Advisory Council A-94 Federal Reserve Banks and Branches A-95 Federal Reserve Board Publications A-98 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

Recent Credit and Monetary Developments BANK CREDIT expanded rapidly in 1967, although the rate of growth slowed in the latter part of the year. Banks made strong efforts to restore their liquidity positions during the year, and more than half of the rise in bank credit took the form of security acqui­ sitions. The public became more willing to hold bank deposits— both demand and time—as interest rates on short-term market in­ struments remained below their peak levels of 1966, and as con­ sumer saving was exceptionally large relative to income. Demands for bank credit and bank deposits were accommo­ dated by a rapid expansion—during most of the year—in reserves made available to banks through Federal Reserve open market operations or released by reductions in reserve requirements. In late 1967, however, the stance of monetary policy became less expansionary, as an acceleration in economic activity was ac­ companied by marked increases in price and cost pressures. In light of these developments, as well as the devaluation of the pound and the further deterioration in the U.S. balance of pay­ ments position, the Federal Reserve raised the discount rate back to 416 per cent in November, and in December it announced an increase of half a percentage point in reserve requirements on demand deposits in excess of $5 million, effective in mid-January 1968. Short-term market rates of interest, which had begun to rise in the early summer, rose further in late fall and early winter, although recently falling off from peak rates reached around year- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 end. But with market interest rates on balance relatively attractive, inflows of time and savings deposits at banks and of savings ac­ counts at nonbank savings institutions slowed in the last part of 1967 and in early 1968. Long-term interest rates reached peak levels during the fall of 1967. In most cases these levels were well above the highs reached in the summer of 1966. Offerings of corporate bonds surged as businesses borrowed heavily in the capital markets in an effort to restructure financial positions and to protect them­ selves against possible future credit stringency. Borrowing by State and local governments also remained large. Moreover, in the second half of 1967, the Federal Government, in order to meet its exceptionally large cash needs, marketed an unusually large volume of new securities. During early 1968 most long-term market interest rates declined somewhat, as market expectations improved and as private security offerings moderated from the heavy volume of the summer and fall of 1967. FEDERAL RESERVE In the early months of 1967 the Federal Reserve extended the POLICY policy of monetary ease initiated in the fall of 1966. Open market operations absorbed only part of the return flow of reserves in early January and then supplied additional reserves at a rapid pace. By early March average member bank borrowing at Reserve Banks had fallen to around $200 million compared with $560 million in December 1966. In March the Board of Governors authorized a two-step reduc­ tion in reserve requirements—from 4 to 3 per cent—on regular savings deposits, on Christmas savings and vacation club ac­ counts, and on the first $5 million of other time deposits at each member bank—lowering required reserves by about $850 million. The following month the Federal Reserve discount rate was reduced from 416 to 4 per cent. These policy actions were sup­ plemented by continued use of open market operations in order to provide the reserves needed to accommodate deposit growth. By early summer prospects of a more rapid increase in economic activity suggested the desirability of greater emphasis on restraint in the mix of fiscal and monetary policies, preferably through fiscal measures such as the administration’s proposed tax increase. In the summer and early fall Treasury needs for a large volume of cash financing were added to very large private credit demands and the Federal Reserve continued to supply reserves at a relatively rapid pace. Nonborrowed reserves, which had shown little net Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT CREDIT AND MONETARY DEVELOPMENTS 103 change in 1966, expanded quite rapidly throughout most of 1967. Because of the increase in reserve availability, member bank bor­ rowing from Federal Reserve Banks fell, on average, to the lowest level since 1962. 1 |BANKS' RESERVES expand... BILLIONS OF DOLLARS SEASONALLY ADJUSTED TOTAL RESERVES NONBORROWED RESERVES BORROWING from Federal Reserve declines NO! SEASONALLY ADJUSTED EXCESS RESERVES BORROWINGS TROW FEDERAL RESERVE Monthly averages of daily figures for member banks. Total and nonborrowed reserves are adjusted to exclude the effects of changes in reserve requirement percentages. Nonborrowed re­ serves arc total reserves adjusted minus member bank bor­ rowings from the Federal Reserve. Excess reserves are total reserves less required reserves. Latest figures: January (pre­ liminary). Near the end of 1967, with no tax action yet taken, Federal Re­ serve policy moved toward restraint in response to both domestic and international pressures on the dollar. With the devaluation of sterling and the increase in the British discount rate in November, the Federal Reserve raised the U.S. discount rate from 4 to 414 per cent. Late in December the Board of Governors announced a two-stage increase in reserve requirements against demand de­ posits in excess of $5 million at member banks, effective around mid-January 1968. This action raised the reserve requirement from 1616 to 17 per cent for reserve city banks and from 12 to Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

104 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 12*/2 per cent for other member banks and increased required reserves by an estimated $550 million. Supplementing these measures, open market operations became somewhat less accom­ modative. The most immediate effect of these policy actions was a rise in the cost of day-to-day credit, as typified by the interest rates on Federal funds and on bank loans to Government securities dealers. Also, with reserves being supplied less freely by System action, member banks began to increase their borrowing from Federal Reserve Banks. Over the year, in order to offset technical factors and to add to the reserve base of member banks, the Federal Reserve ac­ quired about $4.8 billion, net, of Treasury securities through out­ right purchases or repurchase agreements. Most of these acquisi­ tions—slightly more than three-fourths—were in Treasury bills. However, in an effort to moderate upward pressures on long-term interest rates resulting from heavy supplies of securities and changing market expectations, about one-quarter of the System’s net purchases of Treasury securities were in coupon issues. The majority, $780 million, of these purchases of coupon issues— about two-fifths of which had maturities in excess of 5 years— occurred in the spring and early summer. BANK CREDIT After showing almost no growth during the last half of 1966, total loans and investments at commercial banks expanded by 11 per cent in 1967. With relatively moderate Ioan demand and strong deposit inflows, banks were able to improve their reduced 2 I SECURITIES play larger role in bank credit expansion PERCENTAGE CHANGE 1965 1966 1967 1965 (966 1967 1965 1966 1967 Seasonally adjusted annual rates based on monthly data. Data partly estimated for all com­ mercial banks as of last Wednesday of month, except for June 30 and December 31. Interbank loans excluded. Latest figure: December 31 (estimated). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT CREDIT AND MONETARY DEVELOPMENTS 105 liquidity by rapidly increasing their holdings of securities through­ out most of the year. While total loans expanded at the slowest pace since 1960-61, some categories of loans showed a marked increase in the rate of expansion in the second half. Business loans. Even with bank credit more readily available in 1967 than in 1966, business loans expanded at a less rapid pace—by 9 per cent compared with 13 per cent in the previous year. As in 1966, however, a large part of the increase occurred in the first half, when corporate income tax payments were un­ usually heavy as a result of the accelerated tax program. After July, business borrowing at banks dropped back considerably, except for a bulge in late December and early January associated with tax and dividend payments and year-end adjustments. BUSINESS BORROWING The relatively moderate pace of business loan expansion in BILLIONS OF DOLLARS LOANS FROM BANKS 1967 as compared with 1966 reflected a lower rate of inventory 15 accumulation, a reduced pace of plant and equipment expendi­ tures, and a shift of corporate borrowing to commercial paper and capital markets as corporations became concerned about future availability and cost of funds. In part, the last was a reaction to the 1966 experience, when many commercial banks found it necessary to ration credit to their business customers in view of restrictive monetary policy and reduced deposit inflows. The reduced pace of business loan growth last year was evi­ dent in almost all industrial loan categories. There were higher Seasonally adjusted annual rates taken from flow of funds data. Loans from rates of growth, as compared with 1966, among a few industrial banks include bank holdings of com­ mercial paper and acceptances issued loan components—such as commodity dealers, mining and by domestic nonfinancial corporate businesses. Securities are those issued petroleum, and primary metals—but these were the result of by corporate nonfinancial businesses only. Data for the last half of 1967 special situations rather than underlying strength. In addition, the partially estimated. relatively large increase in bankers’ acceptances—reflecting, in part, bank interest in portfolio liquidity—accounted for some of the growth in business loans in the second half. Other loans. Other major categories of loans, reflecting the pick-up in economic activity, grew at a faster rate during the sec­ ond half of the year than in the first. Consumer loans, influenced by increased purchases of durable goods beginning around mid­ year, expanded almost twice as fast as in the first half, although the increase for the year was less than in 1966. Growth in real estate loans—which had slowed considerably in late 1966 and early 1967—also expanded more rapidly after midyear, in large part owing to the easing of credit conditions which ultimately led to a relatively rapid rise in construction outlays and increased de­ mands for mortgage financing. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 With the unusually large volume of Treasury financing in the second half, security loans, which had declined earlier in the year, expanded rapidly in the summer and fall—exceeding, on balance, the rate of growth in 1966. Finally, loans to nonbank financial institutions, after declining from mid-1966, began to increase in the late summer and fall of 1967. The liquidation of these loans had reflected largely refinancing by finance com­ panies through issuance of commercial paper, which remained less costly than bank financing even after the reductions in the prime rate in the early months of 1967. After late summer, as the cost advantage of market financing narrowed, loans to non­ bank financial institutions expanded rapidly until November, when the prime rate was increased. Bank investments. After a net liquidation during 1966, total holdings of securities by banks rose rapidly in 1967 and accounted for about half of the total bank credit expansion during the year. With moderate loan demand, strong deposit inflows, and attractive security yields available, banks invested in securities, partly in an effort to rebuild their liquidity and thereby to provide a cushion against the renewal of strong loan demands. While it is difficult to quantify the liquidity positions of banks, such indicators as the SECURITIES ratios of loans to deposits and of short-term securities to deposits BILLIONS OF DOLLARS U.S. GOVERNMENT improved in 1967 as compared with 1966, although still showing less liquidity than in earlier years. Bank holdings of U.S. Government securities rose almost 12 per cent in 1967, the first annual increase since 1961. Most of the increase occurred during the period of large-scale Treasury OTHER ji J J l ‘ financings after midyear, when bank holdings of these securities— most in the shorter maturity ranges—expanded by about 216 times the pace of the first half. However, in December and Janu­ Seasonally adjusted data for all com­ mercial banks. Other is largely munic­ ary with deposit growth constrained, banks liquidated Govern­ ipals, PC’s, and Federal agency securities; adjusted in the first half ment securities to accommodate the sizable turn-of-the-year ex­ of 1966 for shift of $1 billion of PC’s from “loans” on June 30. Last pansion in business loans. half of 1967 estimated. Banks increased their holdings of other securities by a record $11.7 billion in 1967, almost 4 times the increase in 1966. During the first half, acquisitions of these securities—mostly State and local issues and attractively priced participation cer­ tificates and Federal agency issues—increased at a record 31 per cent annual rate. Such acquisitions slowed somewhat after mid­ year as banks acquired more Treasury issues, and as uncertainties about the sustainability of time and savings deposit inflows ap­ parently led to a reduced interest in longer-term State and local government securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT CREDIT AND MONETARY DEVELOPMENTS 107 TIME AND SAVINGS Time and savings deposits at commercial banks, after showing DEPOSITS little growth over most of the last half of 1966, began to expand more rapidly toward year-end and continued to increase at a rapid rate during most of 1967. Over the year, these deposits increased about 16 per cent, almost twice the 1966 pace. In the second half of 1966, when market rates surpassed the regulatory ceilings banks could pay for such deposits, there had been a shift of funds from these deposits into higher-yielding market securities. However, when money market yields declined in late 1966 and early 1967, time and savings deposits at commercial banks again became rela­ tively attractive, and inflows of these deposits expanded rapidly during the early months of 1967—with most of the growth being in the more interest-sensitive CD’s and consumer-type time de­ posits. During early spring—with somewhat improved bank liquidity, strong inflows of time deposits other than CD’s, and relatively moderate loan demand—banks became less aggressive issuers of CD’s. In the second quarter, therefore, CD’s outstanding showed little net change. Banks also took steps during this period to moderate inflows of consumer-type time deposits—particularly by reduced advertising and by rate reductions at some large banks. Despite such measures, growth in these deposits remained relatively large. Because of rising short-term interest rates, growing expectations of further increases in interest rates, and anticipated heavier de­ mand for loans, around midyear banks began to raise their offer­ ing rates and compete more actively for large negotiable CD’s. There were also selective rate increases on consumer-type instru­ ments, including the restoration of rates reduced earlier by large banks. However, when short-term market interest rates continued to COMMERCIAL BANKS rise over the second half of 1967, inflows of consumer-type de­ posits slackened as consumers made marginal shifts to market TIME AND SAVINGS DEPOSITS 20 securities, and CD inflows slowed when offering rates approached their 514 per cent Regulation Q ceiling. Under these circum­ stances banks found it necessary to raise offering rates on shortermaturity CD’s as the 514 per cent limit became noncompetitive on the longer-maturity CD’s. In December, after the devaluation of sterling and the in­ crease in the U.S. discount rate, CD offering rates of 514 per Percentage change in seasonally ad­ justed annual rates based on monthly cent became available throughout the maturity range. Towards averages of daily figures. Data adjusted to include balances accumu­ the end of the month, when the volume of maturing CD’s was lated for payment of personal loans which were eliminated from time unusually large and banks were having difficulty in marketing all deposits in June 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

108 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 but the shorter maturities, outstanding CD’s declined more than seasonally. Moreover, during this period, inflows of time de­ posits other than CD’s continued to slacken. As short-term market rates declined in January from year-end peaks, banks were able to reduce offering rates below the 51/2 per cent ceiling on CD’s maturing in less than 6 months and at the same time recovered almost 80 per cent of the earlier decline in the outstanding volume of these deposits. 1965 1966 1967 '68 Data are for weekly reporting banks as of the last Wednesday of month and are not seasonally adjusted. The effect of a change in coverage of weekly reporting banks at the end of June 1966 has been eliminated. Negotiable CD’s are in de­ nominations of $100,000 or more. Latest figure: January. Liabilities to foreign branches. With moderate loan demand and sufficient leeway under Regulation Q ceilings to attract large in­ flows of time and savings deposits as short-term market rates de­ clined, banks reduced their borrowing in the Euro-dollar market through their foreign branches by $1.6 billion between mid­ December 1966 and early May 1967. About midyear, however, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT CREDIT AND MONETARY DEVELOPMENTS 109 with rising short-term market rates and with stronger loan demand anticipated in the second half, banks began to increase their Euro-dollar borrowing again. The Euro-dollar market remained a relatively attractive source of funds throughout most of the second half, and banks increased their Euro-dollar liabilities by $1.9 billion from the end of May to mid-December. After the devaluation of sterling, Euro-dollars became somewhat more costly, but the availability of such funds was not seriously constrained, at least not for comparatively short­ term maturities. By late January 1968, as the cost of these funds declined substantially from earlier peaks, liabilities of banks to foreign branches were almost as high as in mid-December. Nonbank savings institutions. Savings deposit inflows of non­ bank savings institutions in 1967 generally paralleled inflows of time and savings deposits at commercial banks. With declining yields on short-term market instruments increasing the relative at­ tractiveness of all deposit-type instruments issued by financial in­ stitutions, and with the high rate of consumer saving, net inflows of funds to savings and loan associations and mutual savings banks accelerated early in 1967. The expanded availability of funds at these institutions contributed to the casing of mortgage markets and a recovery in construction. However, following the reversal of the downward trend in short-term rates around midyear, de­ posit inflows to these institutions slackened, and these institutions became more cautious in making mortgage commitments. MONEY STOCK After declining in the last half of 1966, the money stock grew rapidly during most of 1967 as the public rebuilt its money bal­ ances, which had been reduced sharply during the period of mone­ tary restraint in 1966. The 6.5 per cent rise over the year was al­ most three times the pace of 1966, but for the 2 years combined, the growth rate averaged 4.4 per cent, the same as the average for the two preceding years. (See Chart 4.) Demands for money were probably enhanced by the relatively low short-term market rates during most of the year—at least as compared with 1966 peak rates—and also by cautious public attitudes in view of uncertainties related to proposed tax increases and to domestic economic conditions. Most of the money stock increase appears to have gone into consumer hands, although at times during the year corporations also added to their bank balances—in part, presumably, to safeguard their ability to obtain future credit from their banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

110 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 4 After little growth in 1966, MONEY STOCK rises rapidly Seasonally adjusted weekly averages of daily figures. Money stock consists of demand deposits and currency outside the Treasury, the F.R. System, and the vaults of commercial banks. Demand deposits exclude those due to domestic com­ mercial banks and the U.S. Govt., cash items in process of collection, and F.R. float but includes foreign demand bal­ ances at F.R. Banks. Latest figure: last week in January; last 4 weeks in January, preliminary. INTEREST RATES During 1967 potential borrowers found both short- and long­ term credit more readily available than in 1966. But at the same time the demand for credit—especially by corporations, State and local governments, and the Federal Government—also began to expand. As a result long-term rates rose after midwinter and short-term rates began to rise in early summer. From late 1966 through the spring of 1967, short-term inter­ est rates declined rapidly. The decline reflected in part the impact of an easier monetary policy. But it was also associated with an increase in demands for liquidity by financial institutions, in con­ junction with larger than usual debt repayments by the Treasury and Federal home loan banks. During the first half of the year, the Federal home loan banks sharply reduced their outstanding short­ term debt as they received repayments on advances—made the year before—to member savings and loan associations. In addi­ tion, the home loan banks were sizable net buyers of Treasury bills in the market. In the early weeks of 1967 long-term interest rates also fell when the increased availability of funds at banks and other finan­ cial institutions relieved the pressure in long-term markets. More- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT CREDIT AND MONETARY DEVELOPMENTS 111 over, anticipated further easing of monetary policy at this time contributed to the decline in long-term yields. After midwinter, however, long-term market rates began to rise, and they continued to increase throughout the rest of the year. Corporations began, relatively early in the year, to borrow heavily in long-term markets in order to replenish their liquidity, which had been reduced in 1966. Long-term borrowing continued heavy, as corporations attempted to lengthen their debt in antici­ pation of accelerated economic growth, more restrictive monetary policy, and rising interest rates. Short-term interest rates began to rise during the summer as the Treasury issued an unusually large amount of short-term securities to finance the sizable second-half deficit. Moreover, toward the year-end short-term market rates shifted up further in response to the increase in the discount rate in November, the firming of open market policy in December, and the announcement of the increase in reserve requirements. After year-end pressures had sub­ sided, short-term interest rates declined from earlier levels. Long-term interest rates also declined rapidly early in 1968, as expectations of rising rates were moderated by the President’s balance of payments program and the possibility of peace negoti­ ations. But in early February these rates still remained relatively close to the advanced levels reached in late 1967. 5 | SHORT-TERM interest rates turn up in early summer; LONG-TERM rates, after midwinter 1965 1966 1967 '68 1965 1966 1967 '68 Monthly averages except FHA (based on quotations for 1 day interest rate); corporate issues, weighted averages of new each month) and prime 1-year municipals (based on quotations publicly offered bonds rated Aaa, Aa, and A by Moody’s for 1 day at beginning of month). Yields: 4-6 month prime Investors Service arid adjusted to an Aaa basis; U.S. commercial paper; U.S. Treasury bills, market yields; prime Govt, bonds, market yields adjusted to 20-year constant maturity 1-year municipals are from Salomon Brothers & Hutzler; FHA, by U.S. Treasury; State and local govt, bonds, Moody’s. Latest weighted averages of private secondary market prices of new- figures: January 1968, except for FHA mortgages which is home 30-year mortgages converted to annual yield (dash line December 1967. indicates periods of adjustment to changes in contractual Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ In all cases the analyses and conclusions nors of the Federal Reserve System and of set forth are those of the authors and do the Federal Reserve Banks undertake studies not necessarily indicate concurrence by the that cover a wide range of economic and Board of Governors, by the Federal Reserve financial subjects, and other staff members Banks, or by members of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of some instances the Board finances similar the studies or papers that are summarized studies by members of the academic pro­ below are available in mimeographed form. fession. The list of Federal Reserve Board publica­ From time to time the results of studies tions at the back of each Bulletin includes that are of general interest to the economics a separate section entitled “Staff Economic profession and to others are summarized— Studies’’ that enumerates the studies for or they may be printed in full—in this sec­ which copies are currently available in that tion of the Bulletin. form. Study Summary THE LAGS BETWEEN INVESTMENT DECISIONS AND THEIR CAUSES Shirley Almon—Formerly with the Council of Economic Advisers This paper was prepared under a grant from the Social Science Research Council, Committee on Economic Stability, Subcommittee on the Monetary Mechanism, in connection with a study of the impact of mone­ tary policy being sponsored by the Board of Governors of the Federal Reserve System. Many recent econometric studies of fixed spending. Appropriations, as measured by investment have found that the lag between the series collected by the National Industrial determinants of investment—output, cash Conference Board (NICB), respond quickly flow, and interest rates—and spending ex­ to changes in economic determinants. extends over 3 or 4 years. This study attempts The basic format of the appropriations to identify better the lag by dividing it into equation is the familiar stock adjustment two parts: first, the lag between the causes formulation, with desired net investment of investment and the appropriations; and defined as the gap between desired capacity second, the lag between the appropriations and current capacity adjusted for past, un­ and the spending. The results suggest that spent appropriations. The acceleration co­ the larger portion of the total lag arises in efficient is not constant but depends upon the period between appropriations and the cost of capital. To represent costs of ex- 113 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

114 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 ternal financing, an industrial bond yield The second link of the investment proc­ and an index of stock prices were tested. ess relates appropriations to final expendi­ The ratio of net cash flow to capacity and tures by a distributed lag schedule. Appro­ the long-term debt-to-asset ratio were used priations originating in a given quarter are to take account of the cost and availability gradually spent over a period of several of internal financing. quarters. As suggested by recent studies, The relation between appropriations and the timing of the spending schedule varies their causes was estimated for the All Manu­ with capacity pressure in the supplying in­ facturing series and for 12 industries sur­ dustries. The equations use the ratio of un­ veyed by the NICB. For All Manufacturing spent appropriations to expenditures to rep­ distributed lag schedules over only four resent this pressure. A variable-weight quarters were found long enough for each spending schedule of seven quarters was es­ of the three variables. These short lags indi­ timated for All Manufacturing. cate a rapid reaction to economic signals. The types of equations found useful for For the output variable the weights on the the All Manufacturing series were then ap­ third and fourth preceding quarters were plied to each of the 12 industries. The re­ negative. This negativity, however, is con­ sults generally support the rapid reaction sistent with the accelerator theory. found in the All Manufacturing series. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

The Price of Gold is not the Problem The international monetary system has been has provided the monetary framework for the subject of much uncertainty in recent an unprecedented expansion of world in­ months. The devaluation of sterling in No­ come and trade in the period since Bretton vember provided a shock which, against the Woods. background of a persistent deficit in the U.S. The case I shall put to you in what fol­ balance of payments, precipitated fundamen­ lows can be summarized in two straight­ tal questioning as to the evolution of the in­ forward propositions. ternational monetary system, the role of the First, it is imperative to adjust the bal­ dollar, and the price of gold. A number of ance of payments of the United States away observers in the United States and abroad from large and persistent deficit and of con­ have come to the conclusion that an increase tinental Europe away from large and per­ in the official price of gold would be desir­ sistent surplus. A higher gold price would do able; others have decided that, even if it is nothing to bring about those adjustments. undesirable, a rise in the gold price is Second, the nations of the world need a inevitable. means of increasing their reserves in a way I am firmly of the belief that a higher gold that is not dependent on continuing deficits price is neither necessary nor desirable. In in the U.S. balance of payments. I am confi­ reviewing with you the problems of the in­ dent that the Rio Agreement on Special ternational monetary system, I want to make Drawing Rights (SDR’s) can fulfill this it unmistakably clear that the future evolu­ function at the present price of gold. tion of the system can and should be based on the present price of gold. THE DOLLAR AND THE U.S. BALANCE OF PAYMENTS There is no doubt that the problems fac­ ing the international monetary system are The root of the present imbalance in inter­ serious. I have no wish to underestimate national payments can be traced back to the their gravity. Consideration of the various early years after World War II. At that time solutions that have been proposed must be the United States initiated a program of in­ based on a clear understanding of the nature ternational assistance designed to promote of the problems that we face. This is a time the economic recovery of war-damaged for cool-headed appraisal in the light of his­ countries. In the process, the United States tory and not for unmindful acceptance of deliberately created a deficit in its balance panaceas that risk overturning a system that of payments, while countries in Europe and elsewhere deliberately sought to achieve sur­ Note.—Remarks of William McC. Martin, Jr., pluses. An important by-product of the re­ Chairman, Board of Governors of the Federal Re­ serve System, before the Financial Conference of the covery program was that it increased the de­ National Industrial Conference Board, at the Waldorf- Astoria, New York City, February 14, 1968. pleted reserves of the war-torn countries—by 115 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

116 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 putting them in a position to accumulate It was during this period that the dollar dollar balances and by redistributing U.S. became the world’s major reserve currency. gold reserves—which at the end of 1948 It is significant that in those early years comprised more than 70 per cent of world we did not describe these payments positions gold holdings. as “deficits” and “surpluses.” Many a news­ Policies designed to encourage a U.S. pay­ paper article and book were written at that ments deficit took many forms. We pro­ time about the persistent U.S. “surplus” and vided funds through the Marshall Plan in the intractable dollar shortage. The build-up amounts larger than was necessary for coun­ of U.S. dollar balances abroad, together with tries in Europe to purchase badly needed the sale of U.S. gold to other countries, was American goods, thus making it possible for universally regarded as desirable. And so it aid recipients to accumulate dollar reserves. was. We deliberately kept the aid untied by en­ But, like the man who came to dinner, couraging the spending of U.S. grants and the U.S. deficit, though invited, stayed too loans in countries other than the United long. And so did the European surpluses. States. Much of the aid was in the form of Both became chronic. grants rather than loans, so as to avoid bur­ A continuing U.S. deficit of substantial dening the future payments positions of the size is neither desirable nor tolerable. Such a recipients. We provided special inducements deficit saps the international liquidity posi­ for direct investment by American corpora­ tion of the nation, by continually building up tions abroad. We even encouraged European liquid liabilities abroad or continually reduc­ countries to liberalize their imports from ing U.S. reserves, or both. A steady worsen­ each other while they continued to restrict ing of our liquidity position—even while their imports from the United States, and our net worth is improving—cannot be sus­ later we supported the formation of the tained indefinitely. As a reserve currency, Common Market. the dollar is widely held around the world. In these and other ways the United States It is natural that holders of dollars look to adjusted its policies—and its citizens re­ our gold and other reserves, expecting us sponded in their actions as importers, lend­ to maintain a reasonable relationship be­ ers, investors, and travelers—to the mainte­ tween our liquid reserves and our short-term nance of a deficit in its balance of payments. liabilities, just as depositors look to the funds In other words, the United States accus­ held in reserve by their banks. tomed itself to an outflow of government and The United States as a bank to the rest private capital in excess of its surplus on of the world was in the early postwar years goods and services—with the result, as in­ a bank with too strong a liquidity position. tended, that U.S. dollar liabilities increased By means of the Marshall Plan and the and U.S. gold reserves fell. The countries of other policies I have mentioned, the bank continental Europe made a corresponding embarked on a deliberate program that adjustment to a surplus position—that is, to transformed its liquid assets into less liquid an inflow of capital from abroad combined form, while its liquid liabilities expanded. with a pattern of transactions on current ac­ In the process, the bank basically improved count that resulted in steady and sizable its position, while contributing significantly increases in their gold and dollar reserves. to world economic growth, for it acquired Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

PRICE OF GOLD IS NOT PROBLEM 117 sound and high-yielding long-term assets for freer world investment and trade. While around the world as a counterpart to its the various features of the program are increasing liabilities. But its liquidity de­ serving a necessary stop-gap purpose, it is teriorated, since its most liquid asset—-its essential that the United States strengthen its gold reserves—declined while its liabilities underlying payments position. This means, expanded. * at the very least, that it is vital for the This drawing-down in the bank’s liquidity United States to pursue effective stabiliza­ position—once welcome—has now gone on tion policies that promote price stability for too long. The time has come to arrest and a competitive cost structure. it, and to do so decisively. As this happens, The results of the balance of payments the bank’s depositors—the rest of the world program will be sustainable only if the re­ —-must adjust to a slowdown in the lending duction of the U.S. deficit has as its counter­ and deposit-creating activities of the bank part a reduction of European surpluses. This by providing other sources of capital and is so because there are not many countries by establishing another means of increasing outside of continental Europe that earn international reserves. large surpluses or that have strong enough In other words, the world payments pat­ reserves to be able to adjust to a substantial tern is going through a period of transition improvement of the U.S. payments balance. —away from the pattern I have described I am pleased to say that the reactions —-and the transition is understandably a of European officials to the announcement painful one, since it requires a modification of the U.S. program seem by and large to of so many policies and habits established be highly constructive. They have made it earlier. The United States must cut the suit clear that they understand the economic of its payments abroad to fit the cloth of its necessity I have just mentioned and that receipts from abroad. And the countries of they intend to adopt policies designed to continental Europe must do the reverse— facilitate rather than interfere with the ad­ they must find ways to export capital in an justment of the payments imbalance. amount equal to the excess of their exports European officials recognize the need to over their imports of goods and services— prevent a reduction in total demand in their or else they must reduce their export sur­ economies as U.S. foreign investment and pluses. And the adjustment by both sides other forms of spending in Europe decrease. should be carried out in a way that is com­ They recognize the need to offset through patible with the healthy and inflation-free their monetary policies tendencies for the growth of the world economy. reduction in the flow of dollars to Europe The U.S. balance of payments program, to tighten monetary conditions there and, announced on January 1 by President John­ more broadly, they recognize the need to son, should produce substantial results. That encourage capital outflows from their mar­ program is more severe than would have kets. And they acknowledge that the pursuit been needed had timely action on the do­ of such policies may result in reductions in mestic stabilization front been taken a their own reserves. year or more ago. Furthermore, the new Thus, we have before us the possibility, program necessarily represents a step back­ if stated intentions on both sides of the At­ ward—temporarily—from our aspirations lantic are implemented with proper actions, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 of a highly successful effort of international It seems perfectly clear that a revaluation cooperation—aimed at rectifying the imbal­ of gold would make little or no contribution ance in international payments and com­ to an adjustment of the imbalance in inter­ pleting the transition away from the pay­ national payments. ments pattern that was established, in re­ There are those who will accept the point sponse to need, in the earlier postwar pe­ I have just made 15ut will say that an in­ riod. crease in the gold price will buy time for In the light of this way of looking at the the United States. Buy time for what? They balance of payments adjustment problem, can only mean that it would delay the need I can now put to you the following ques­ for forceful measures to improve the bal­ tion: Is there any reason to think that a ance of payments—that it would permit higher gold price would help to bring about the United States to avoid distasteful curbs the needed adjustment? on capital outflows or other payments It can be taken for granted that a uni­ abroad and continue to incur deficits, thus lateral devaluation by the United States is putting off the painful adjustment to a impossible; a change in the price of gold healthier balance of payments. It seems clear in terms of dollars would undoubtedly be to me that a measure known to be intended accompanied by an equal change in terms to buy time, if it is not accompanied by ac­ of virtually all other currencies. tion to improve the underlying problem, Would the U.S. balance of payments im­ will in fact buy relatively little time—for prove as the result of such an increase in markets will anticipate the lapse of the pe­ the price of gold? Only to the extent that riod of bought time and act accordingly. the enlarged foreign exchange earnings of Thus, a rise in the gold price is not an al­ gold producing countries led them to in­ ternative to measures to strengthen the bal­ crease their purchases from the United ance of payments. Such measures are re­ States. But this would be a very small ben­ quired in any event and cannot be avoided efit compared with the magnitude of the by an increase in the price of gold. U.S. payments deficit and would be far out­ The United States can and must pursue weighed by the many disadvantages that domestic fiscal and monetary policies that would accompany an increase in the gold keep its economy and its price level under price. Would American corporations have control. This is the paramount economic is­ less incentive to invest abroad? Would sue of 1968. And it must for the time being persevere with supplementary balance of Americans travel less? Would developing payments measures to help restore its ex­ nations need less aid? Would our imports ternal payments to equilibrium as quickly decrease? Would our military spending in as possible. Tinkering with the international Europe and Asia seem less pressing—if the price of gold is in no sense a substitute for price of gold were higher? The answer in actions that face up to these hard facts of each case is clearly no. life. Would European surpluses decline as the result of a higher gold price? Not at all. In THE DOLLAR AND INTERNATIONAL LIQUIDITY fact, insofar as gold producing nations in­ creased their purchases from Europe, these I turn now from the balance of payments surpluses would be aggravated. problem itself to the relation between the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

PRICE OF GOLD IS NOT PROBLEM 119 U.S. balance of payments and international dependable supply of new reserves to satisfy liquidity and the relevance of this to the this basic desire of nations to increase their price of gold. reserves—a supply that is neither excessive It became clear soon after the war that nor deficient but consistent with the nonas economic recovery and economic growth inflationary growth of the world economy. proceeded, countries wished to see their gold A once-for-all or once-in-a-generation in­ and foreign exchange reserves increase. crease in the value of gold reserves resulting The balance of payments pattern that was from an increase in the gold price is no sub­ established in the postwar period provided stitute for a gradual and steady accretion a built-in mechanism for expanding not only of new reserves. It is precisely this need that the reserves of the war-torn countries but the Special Drawing Rights are designed also for expanding world reserves. Insofar to fulfill. as other countries added dollars to their re­ It has been clear for many years that new serves instead of using dollar accruals to gold production alone cannot provide the buy gold from the United States, the U.S. necessary increase in world reserves. It is deficit enlarged the reserves of other coun­ equally clear that dollars cannot and should tries without reducing U.S. reserves. And not any longer satisfy a major part of the even when other countries began to use desired growth in the reserves of other coun­ a part of their dollar receipts to purchase tries. This was the basis for the unanimous gold from the United States, their reserves decision of the members of the International rose faster than our reserves fell—and world Monetary Fund at Rio last September to reserves expanded accordingly. But this proceed with the plan for Special Drawing process had the inevitable effect of reducing Rights. the international liquidity position of the It has been said, and correctly, that the United States. Rio agreement is a landmark in interna­ The balance of payments adjustment that tional monetary history. It is a landmark be­ must now be accomplished will cut off this cause it introduces a new concept—the de­ major source of reserve growth. Yet the de­ liberate creation of international reserves as sire of countries around the world to in­ a supplement to existing reserves of gold crease their reserves has not diminished and and foreign exchange. The Federal Reserve will not diminish. Thus another source of re­ System is based on the proposition that serve growth will be needed. “money will not manage itself.” The SDR It is understandable that nations wish to Agreement can be said to be based on the see their reserves increase over time. Indi­ view that international money will not man­ viduals and businesses expect their liquid age itself either. The willingness of mon­ assets to grow as their incomes grow. Liquid etary authorities to cooperate, through the assets are there to be used in times of tem­ International Monetary Fund, in the crea­ porary shortfalls of receipts below payments. tion of Special Drawing Rights has unmis­ But no individual or business and no nation takable implications: it means that the world can afford to see its liquid reserves diminish will be assured of a growing supply of re­ persistently. Taking all nations together we serves at the present price of gold. have observed, and will no doubt continue Events of recent months—the shock to to observe, a tendency to add to reserves the international monetary system following over time. What is needed is a steady and the devaluation of sterling and the strong Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

120 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 reinforcement of the U.S. balance of pay­ price based on the fact that the general price ments program-—lend greater timeliness to level has risen greatly since the early 1930’s the implementation of the Rio Agreement. while the price of gold has been unchanged Once the SDR Amendment is completed by mistakenly views gold more as a commodity the Executive Board of the International than as a measure of monetary value and Monetary Fund and approved by its Board a monetary reserve asset. To raise the price of Governors, I would hope that govern­ of gold because the general price level has ments would proceed promptly to seek rati­ risen would be like increasing the length of fication from their legislatures. the yardstick because the average height of human beings has increased. THE ROLE OF GOLD In addition to these general economic I have said that neither of the two major considerations, which argue strongly against problems facing the international monetary raising the gold price, there are considera­ system calls for an increase in the price of tions of special concern to the United States. gold. Such a step is neither necessary nor A rise in the gold price would break faith desirable as a solution to the problem of in­ with the many nations around the world ternational payments imbalance or to the that have held dollars on the basis of confi­ problem of assuring adequate growth in in­ dence that the United States would stick to ternational reserves. It would be highly dis­ its commitment regarding the price of gold. ruptive and highly inequitable. A small in­ Those who recommend an increase in crease in the gold price would inevita­ the price of gold or are willing to tolerate bly engender expectations of additional in­ it seem to me to have decided that monetary creases in the not-distant future, thus lead­ management is impossible on an interna­ ing both private and official holders of dol­ tional scale and that we must yield to blind lars to convert them into gold and negating and immutable forces that somehow govern the increase in international liquidity that economic destiny. Given the magnificent rec­ the gold price rise was designed to achieve. ord of international monetary and economic An increase in the price of gold of sufficient cooperation we have witnessed in the past magnitude to avoid arousing expectations 20 years, I refuse to accept the cynical and of another such move soon would have to desperate view that man must turn back to be very large. It would undoubtedly be in­ greater dependence on gold. flationary, for it would expand, by a cor­ Let me be unmistakably clear: in my responding amount, both the reserves of judgment an increase in the gold price would gold-holding countries and the purchasing be wholly detrimental to the best interests power of private gold holders. Neither a of both the United States and the interna­ large nor a small rise in the price of gold tional monetary system. would increase international reserves in an I have been quoted as saying that gold orderly and equitable manner. Countries is a barbarous metal. But it is not gold that with small gold reserves would share very is barbarous; that wasn’t my point. Quite little in the increase in reserves. Other means the contrary: gold is a beautiful and noble of increasing reserves of countries—partic­ metal. What is barbarous, when it occurs, ularly those holding little gold—would be is man’s enslavement to gold for monetary required in any event. purposes. The recommendation of a higher gold It is important to sort out clearly just what Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

PRICE OF GOLD IS NOT PROBLEM 121 the role of gold is for the United States and over time as SDR’s supply the major part for the world economy. The reserves of the of reserve growth. This evolution, which United States are mainly in the form of gold, recognizes the monetary importance of gold and the international monetary system has but avoids excessive dependence on it, seems as one of its foundations the convertibility to me to be the only rational course for of the dollar into gold at $35 per ounce. the international monetary system to take. There are some who believe that the U.S. CONCLUDING OBSERVATIONS balance of payments problem could some­ how be solved if we cut the link between I do not wish to leave you with a false sense the dollar and gold. I believe this view is of reassurance. The international economy mistaken. In the circumstances ruling in has been passing through critical times and recent years, the United States would have there are serious problems ahead—in the had a balance of payments problem, what­ payments relations between the United ever form our reserves happened to take— States and Europe, and in the payments for the deficit in our payments inevitably led positions of countries in the rest of the to a reduction of our reserves. We cannot world as the U.S. deficit and continental attribute the payments imbalance to the European surpluses are reduced. Mean­ link between the dollar and gold. We can’t while, other economic problems need con­ solve the payments problem by either cutting tinuing attention, including an adequate the link with gold or by reinforcing depend­ flow of capital from the advanced to the de­ ence on gold by raising its price. veloping nations and an effective use of such Monetary history, both within and among capital. We must never forget that monetary countries, reveals a steady progression away matters and institutions are not an end in from exclusive dependence on gold as a themselves but a means to the end of satis­ monetary instrument. In very few countries factory economic growth and stability. now is gold any longer used domestically While avoiding false optimism, I do want for monetary purposes—either as a medium to leave you with a sense of confidence re­ of exchange or as a regulator of monetary garding international monetary problems. A policy. Supplements to and substitutes for rational and orderly way is discernible gold have been developed and have taken through the twin challenges of balance of over gold’s role as a monetary asset. payments adjustment and adequate growth The same development has occurred in­ of international liquidity—a way that takes ternationally, and today gold comprises only the Bretton Woods system and the gold ex­ a little more than half of world monetary change standard as a foundation and sup­ reserves, with foreign exchange (mainly plements them as needed with continued dollars and sterling) and reserve positions international cooperation, on which so much in the IMF making up the other half. The past progress has been based. I have no creation and use of SDR’s will permit a con­ doubt that our present international mon­ tinuation of this process by which depend­ etary system, supplemented and modified ence on gold gradually diminishes over time. gradually over time, can continue to provide Thus gold, which was the major interna­ a framework for sustained expansion of tional reserve asset in the past, will continue world trade and payments and, in turn, for to be held and used by monetary authorities. uninterrupted advance in living standards But its importance will gradually decline throughout the world. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statements to Congress Statement of William McChesney Martin, over, the pace of the increase has been accel­ Jr., Chairman, Board of Governors of the erating. The rise in the price component of Federal Reserve System, before the Ways the GNP, which had slowed to about a 2 per and Means Committee of the House of Rep­ cent rate last spring, was advancing at a rate resentatives, January 22, 1968. of over 4 per cent in the final quarter of the year. It is less than 8 weeks since I last had the It is clear from the experience of 1966 opportunity to discuss with this committee and 1967—and indeed, from many other the economic and financial conditions of the periods in our history—that we cannot country, but these have been eventful weeks achieve sustained economic growth under indeed. Production, employment, and in­ conditions of inflation. The distortions that comes have all surged to new peaks, and inflation induces in the structure of output unemployment has fallen sharply. With the and demands, and the pressures it generates retarding effects of major strikes largely be­ in financial markets, inevitably result in eco­ hind us, the fundamental strength of expan­ nomic dislocation. Inflation in 1966 was fol­ sionary forces in the economy has been more lowed by a cessation of growth in early clearly revealed. 1967; a more severe adjustment was averted But, unfortunately, the surge in domestic only by the prompt and flexible use of mone­ activity has been accompanied by a further tary and fiscal policies. Nevertheless, there rapid advance in prices. And, unfortunately, was a penalty to pay—in the form of lost these developments in domestic activity and production and employment—for the failure to act early enough the preceding year in prices have been accompanied by a serious containing the emergence of excessive de­ deterioration in our international payments mand pressures. balance, necessitating the mounting of a new We are now seeing some of these distor­ and more stringent program for temporary tions and pressures developing again. Busi­ restriction of capital outflows and other ex­ nessmen have already begun to step up their penditures abroad. accumulation of inventories, in part to “beat As the President stated, in his balance of the price rise.” Negotiators of new wage payments message, “The first line of defense contracts have built last year’s price rise of the dollar is the strength of the Amer­ into next year’s wage costs. But consumers ican economy.” That strength is now being have reacted to swiftly rising prices by sapped by inflation. For the second quarter spending more cautiously. in a row, nearly half of the rise in our gross The increase in business ordering and in­ national product has reflected inflated prices ventory accumulation has been reflected in rather than real growth. Prices have risen at a faster pace of business borrowing at banks, wholesale and retail, for farm products as accompanied by a reduced flow of banking well as for industrial commodities. More­ funds into securities. In financial markets, 122 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

123 the high levels of yields on market securities absence of such restraint, the Government’s has begun to curtail the availability of funds financing needs will again press on financial for the financing of home construction, both markets. Without the added revenues from by reducing the inflows of consumer savings the proposed surcharge, the Treasury will to institutions specializing in home finance, have to borrow a substantial volume of and by diverting funds from mortgages to funds this winter and spring, a period of the other types of investment at institutions that year when it usually has been a net supplier normally do a substantial mortgage loan of funds to the market. Moreover, the business. Repeating the by-now-familiar cy­ prospects of continued large Treasury fi­ cle, growth in commitments for mortgage nancing, and the attendant prospects of con­ lending is being curtailed, and mortgage tinued and—perhaps accelerating—infla­ yields have already risen back to the peaks tion, would undoubtedly stimulate a renewal of 1966. of large private financing demands. The pressures that developed in financial If these developments result in renewed markets over the summer and fall of 1967 and stronger tensions in financial markets, reflected not only the normal rise in private housing finance would undoubtedly suffer demands for funds that accompanies resurg­ again, better insulated though it may be ence in economic activity, but also the extra­ from a repetition of the sharp contraction ordinary additional demands arising from in 1966. As I commented to this committee the Federal Government’s deficit. Borrow­ last September, it is neither socially justifia­ ing by the Treasury in the second half of ble nor economically sound to put so much last year was more than double that of the of the burden of financing a war on one preceding year; the Government accounted sector of the economy. for more than a quarter of all the funds Distortion in the domestic economy is raised in credit and equity markets between only one of the risks we face if excessive June and December, compared with less than demand pressures remain unchecked. We a tenth in the comparable period of 1966. need to combat inflation not only to prevent The reaction of other borrowers to this erosion of the value of the dollar domesti­ enormous volume of Treasury financing, cally but also to maintain its value interna­ and to the possibility of continued preemp­ tionally. tion of loanable funds by the Government, Our merchandise trade balance has al­ was a flood of corporate and municipal ready been sharply reduced. It would serve security issues last summer and fall. The for naught for us to curb international out­ combined pressures of Federal and private flows on capital account through temporary credit demands resulted in a rise in interest restrictions, but at the same time lose the rates that, by December, brought most long­ battle to improve the long-run strength of term borrowing costs to levels well above our balance of payments stemming from the those reached at the height of the credit competitiveness of U.S. products in world strain in 1966. markets. The ability of a country to com­ Pressures in financial markets have abated pete energetically and successfully in inter­ somewhat in recent weeks, partly as a result national markets is widely recognized as one of seasonal factors, partly in response to of the firmest indications of the strength of a peace rumors, and partly because of revived currency. Correspondingly, a country whose hopes for greater fiscal restraint. But in the international trade position is weak and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN a FEBRUARY 1968 seems to be deteriorating may find its cur­ its Federal Reserve notes in circulation. rency subject to speculative attacks. Some change in this requirement this year Changes in the competitive position in or next will be unavoidable as the volume of international trade of an industrial country our currency grows in response to the de­ occur gradually over time. But once lost, a mands of a growing economy. Its repeal strong competitive position is difficult to re­ now would help to make absolutely clear gain. It would be a poor bargain to improve that the U.S. gold stock is fully available to our over-all payments position temporarily serve its primary purpose as an interna­ through stringent curbs on capital outflows, tional monetary reserve. while neglecting to take the steps necessary I want to emphasize that elimination of to assure the long-run strength of that posi­ the cover requirement would in any event tion. That strength depends in large measure be needed in the relatively near future even on curbing the inflationary cost and price if there were no further net sales of gold to increases that would make it increasingly foreigners. Federal Reserve notes in circula­ difficult for our exports to compete in world tion increase each year with growth in our markets and for our domestically produced economy. The increase in 1967 was more goods to compete with imports. than $2 billion, and this alone added more The surest way to surmount this threat is than $500 million to the amount of gold through restraint on public and private required under present law to be held as spending, the goals of the fiscal program cover for Federal Reserve notes. Moreover, that the President has put before you. By our domestic industrial and artistic uses of reducing to a minimum the risk of continued gold, over and above domestic production, inflation, we would demonstrate to the world amounted to $160 million last year, and the high priority we give to maintenance of such uses can be expected to be at least that the competitive position of the U.S. dollar. large in the future. These two factors to­ Even more important, we would thereby lay gether would reduce our “free gold”—the the basis for a balanced and sustainable rate amount of gold over and above that required of real economic growth that is, in the end, as cover for notes—-by about $700 million the true source of confidence in our cur­ a year. At that rate, our “free gold,” cur­ rency, at home and abroad. rently $1.3 billion, would be absorbed in less than 2 years, even in the absence of further sales of gold to foreigners. And it Statements of William McChesney Martin, would be unrealistic not to allow for some Jr., Chairman, Board of Governors, on legis­ additional foreign purchases. Thus, it is lation to repeal the gold cover: clear that a change in the cover requirement Before the Committee on Banking and is unavoidable, and cannot be postponed Currency of the U.S. House of Representa­ for long. tives, January 23, 1968. It is true that Congress has given the Fed­ The Board of Governors of the Federal eral Reserve Board authority to suspend the Reserve System recommends prompt enact­ gold cover requirement for a period of up ment of legislation to repeal the statutory to 30 days and to renew such suspension for provisions that now require each Federal 15-day periods thereafter. But this authority, Reserve Bank to maintain reserves in gold granted at a time when Federal Reserve certificates of not less than 25 per cent of notes were convertible into gold domesti- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 125 cally, was not designed to deal with present­ Convertibility of the dollar into gold at a day conditions. With growth in the economy fixed price—$35 an ounce—is a keystone the attendant need for steadily increasing of the international monetary system and is currency in circulation will certainly con­ a fundamental reason why foreign monetary tinue. To provide the additional currency authorities are willing to hold dollar re­ requires a permanent change in the law, serves. The role of the dollar as the major rather than Board action every 15 days. international reserve currency, together with The primary function performed by gold the readiness of private foreign residents to today is not as a reserve against domestic hold dollar assets, places the dollar in a currency but as a monetary reserve for use unique position in international commerce internationally. The major part of the U.S. and finance. Prompt enactment of legisla­ international monetary reserve is in gold. tion to remove the gold cover requirement Since mid-year, our gold stock has declined would reaffirm to the world the converti­ by more than $1 billion, and it now amounts bility of the dollar. At the same time it would to about $12 billion. In order to arrest this meet the long-run requirements for an ex­ decline, we must achieve a major improve­ pansion in note circulation commensurate ment in our balance of payments. That is the with steady growth in the economy. objective of the program announced by the President on January 1. Before the Committee on Banking and Cur­ But while we are taking the fundamental rency of the U.S. Senate, January 30, 1968. steps needed to bring our international pay­ The Board of Governors of the Federal ments into equilibrium and stop the drain Reserve System recommends prompt en­ on our gold reserves, we should make it actment of legislation to repeal the statutory absolutely clear that all of our gold stock provisions that now require each Federal is available to serve its primary purpose, Reserve Bank to maintain reserves in gold and thus discourage market speculation certificates of not less than 25 per cent of its against the dollar or anticipatory takings of Federal Reserve notes in circulation. Some gold by central banks. Speculation against change in this requirement this year or next the dollar might be encouraged if the gold will be unavoidable as the volume of our cover requirement were regarded as immo­ currency grows in response to the demands bilizing part of our reserves; the labeling of of a growing economy. Its repeal now would only part of our gold reserves as “free” might help to make absolutely clear that the U.S. seem to imply that the rest of our reserves gold stock is fully available to serve its pri­ are somehow unavailable to perform their mary purpose as an international monetary primary function of maintaining the con­ reserve. vertibility of the dollar. Any possible mis­ I want to emphasize that domestic de­ understandings on this point should be put velopments will necessitate elimination of at rest. This legislation would do that. the “gold cover” requirement in the rela­ Removal of this requirement would in tively near future even if there are no fur­ no way reduce our determination to preserve the soundness of the dollar. To achieve our ther net sales of gold to foreigners. Federal goals both domestically and internationally Reserve notes account for nearly 90 per we must pursue sound and equitable fiscal cent of all currency in circulation in this and monetary policies. country, and for nearly 20 per cent of the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

126 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 total money stock including demand de­ tinue. There is no way to ensure a corre­ posits. The amount of such notes outstand­ sponding increase in the gold stock. Hence, ing increases each year with growth in our if the reserve requirement were not removed, economy. The increase in 1967 was $2.2 we would soon face a continuing and in­ billion—about 51/2 per cent—and this alone creasing reserve deficiency. Furthermore, added $540 million to the amount of gold upon suspension of the requirement by the required under present law to be held as Board, we would be required by law to tax reserves for Federal Reserve notes. More­ the Reserve Banks and they would have to over, our domestic industrial and artistic add this tax to their discount rates. Clearly, uses of gold, over and above domestic pro­ repeated suspensions of the reserve require­ duction, amounted to $160 million last year, ment would be an unsatisfactory expedient and such uses can be expected to be at least in the face of a permanent change in the that large in the future. underlying conditions. To provide the addi­ These two factors are reducing what is tional currency that the economy requires called our “free gold”—the amount of gold calls for a permanent change in the law, over and above that required as cover for rather than Board action every 15 days. notes—by about $700 million a year. At The primary function performed by gold that rate, our free gold, which came to $1.3 today is not as a reserve against domestic billion at the end of December, would be currency but as a monetary reserve for use absorbed in less than 2 years, even in the internationally. This has long since been absence of further sales of gold to foreigners. recognized in almost all other countries by And it would be unrealistic not to allow for suspension or elimination of domestic gold some additional foreign purchases. Thus, it reserve requirements. The major part of the is clear that a change in the cover require­ U.S. international monetary reserve is in ment is unavoidable, and cannot be post­ gold. In the past 6 months our gold stock poned for long. has diminished by more than $1 billion, and It is true that Congress has given the it now amounts to about $12 billion. In Federal Reserve Board authority to suspend order to arrest this decline, we must achieve the gold reserve requirement for a period of a major improvement in our balance of pay­ up to 30 days and to renew such suspension ments. That is the objective of the program for 15-day periods thereafter. The Board announced by the President on January 1. would, of course, make use of this authority But while we are taking the fundamental if necessary, rather than permit a shortage steps needed to bring our international pay­ of currency to interfere with the conduct of ments into equilibrium and stop the drain the nation’s business. But the gold reserve on our gold, we should avoid any under­ requirement was established at a time when statement or misunderstanding of our inter­ Federal Reserve notes were convertible into national reserve position. We still hold gold domestically, and authority to suspend about 30 per cent of the total gold reserves the requirement was intended to deal only held by all countries in the free world. We with a temporary shortfall. Both the re­ should make it absolutely clear that all of quirement and the provision for suspending our gold stock is available to serve its pri­ it are anachronisms under present-day con­ mary purpose, and thus discourage market ditions. With growth in the economy the at­ speculation against the dollar or anticipatory tendant need for an increasing volume of takings of gold by central banks. Specula­ currency in circulation will certainly con­ tion against the dollar might be encouraged Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 127 if the gold cover requirement were regarded Government Operations, House of Repre­ as immobilizing part of our reserves; the sentatives, February 7, 1968. labeling of only part of our gold reserves as I appreciate the opportunity that has been “free” might seem to imply that the rest of afforded the Board of Governors to partici­ our reserves are somehow unavailable to pate in your subcommittee’s continuing ef­ perform their primary function of maintain­ fort to determine and make known the scope ing the convertibility of the dollar. Any pos­ and nature of organized crime’s operation sible misunderstandings on this point should in the United States, and to strengthen to a be put at rest. This legislation would do that. point of maximum effectiveness the Federal Removal of this requirement would in no Government’s fight against organized crime. way reduce our determination to preserve The record of your subcommittee’s hear­ the soundness of the dollar. To achieve our ing dealing with the Federal effort against goals both domestically and internationally organized crime offers clear evidence of the we must pursue sound and equitable fiscal danger that is presented by the organized and monetary policies. Whatever discipline crime conspiracy. The Board of Governors gold imposes in this connection makes itself recognizes its responsibility to contribute in felt from the fact of a decline in the gold every meaningful way to the fight against stock rather than from the existence of a re­ organized crime, and pledges full coopera­ serve requirement, and this will continue to tion within its area of responsibility to mini­ be the case. mize the national threat from organized Convertibility of the dollar into gold at a crime. fixed price—$35 an ounce—is a keystone of Mr. Chairman, your letter of November the international monetary system and is a 29, 1967, addressed to the Board’s Chair­ fundamental reason why foreign monetary man Martin identified several specific sub­ authorities are willing to hold dollar re­ jects that you wished covered in a statement serves. The role of the dollar as the major presented to your subcommittee. Before international reserve currency, together with taking up these specific points, let me offer the readiness of private foreign organiza­ a few general observations. tions and individuals to hold dollar assets, As your subcommittee is aware, the Board places the dollar in a unique position in in­ of Governors is not primarily or principally ternational commerce and finance. Prompt an “investigative agency.” That is to say, its enactment of legislation to remove the gold primary responsibilities relate to the formu­ cover requirement would reaffirm to the lation and effectuation of sound monetary world the convertibility of the dollar. At the same time it would meet the long-run re­ policy, and to the regulation and supervision quirements for an expansion in note circula­ of State-chartered banks that are members tion commensurate with steady growth in of the Federal Reserve System. Our super­ the economy. visory responsibilities are primarily accom­ plished through regularly scheduled bank ex­ aminations, the primary purpose of which is to determine if, and assure that, the banks Statement of William W. Sherrill, member, are being operated in a sound manner. State Board of Governors of the Federal Reserve member banks are examined at least once System, before the Legal and Monetary Af­ each year by the Reserve Bank examiners, fairs Subcommittee of the Committee on and more frequently in any case where exist- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 ing circumstances dictate. While the super­ with the judgments and actions of other Fed­ visory functions involve, of course, investi­ eral and State bank supervisory authorities. gatory procedures, such procedures are not Turning now to the particular subjects of the nature, magnitude, or intensity of the mentioned in your subcommittee’s request investigations conducted by the Federal Bu­ of the Board to present a statement, I would reau of Investigation and other divisions and first comment upon the extent to which the bureaus of the Department of Justice, by the Federal Reserve System has encountered Internal Revenue Service and other units in elements of organized crime in its member the Treasury Department, or by numerous banks. On the basis of our day-to-day exami­ other Federal agencies directly responsible nation of our member banks, of our daily for, and geared to, full-scale investigative and close contact and association with the work. members of the banking community, and In cases where the Board of Governors, of information coming into our possession either directly or through one of the Federal from the many sources available to a Fed­ Reserve Banks, encounters evidence of crim­ eral supervisory agency, the Board is not inal activity suggesting the need for investi­ aware of penetration of its State member gation, a prompt report of the matter is banks by organized crime. While in a given made to the Federal Bureau of Investigation, instance an examination of a member bank or the appropriate U.S. Attorney. The point could present facts that would establish con­ I am making is that while the staffs of the clusively that organized crime had pene­ Board and of the Federal Reserve Banks are trated the bank, more likely an act of an ap­ responsible for, and we believe accomplish, parent criminal nature could not, with cer­ painstaking inquiries with respect to the tainty, be associated with organized crime. bank examination function, criminal in­ Identification of organized crime in a vestigations of the type and scope contem­ given situation is a major problem for per­ plated by your subcommittee’s study are not sonnel without law enforcement training. considered appropriately the function or re­ With respect to any crime or suspected crim­ sponsibility of the Board or the several Re­ inal activity in a bank, the conclusion that serve Banks. organized crime was not involved usually fol­ Another fact bearing on the Board’s role lows upon identification of a malfeasor with in dealing with the question of organized motives apparently unrelated to organized crime’s efforts to penetrate the banking busi­ crime. ness is that the Board’s supervisory and regu­ For the most part, the crimes with which latory functions are exercised with respect the System’s bank examiners are most often to approximately one-tenth of the commer­ confronted are the so-called “internal cial banks in the United States, holding crimes” such as embezzlements, defalcations, about one-fourth of the deposits of all U.S. and fraudulent and unlawful loans. The “ex­ commercial banks. While the Board has ac­ ternal crimes” occurring in our banks are cess to and utilizes data relating to all mem­ usually quite obvious and encompass such ber banks, its supervisory actions are di­ crimes as armed robbery, theft, and bur­ rected to the approximately 1,300 State glary. Your subcommittee is familiar with member banks. In the course of this super­ the steps taken within the System aimed at vision, every practicable effort is made to effecting maximum security and controls coordinate the Board’s supervisory actions measures against both internal and external Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO. CONGRESS 129 crime, several of which steps were taken Thirdly, it seems clear to me that Federal pursuant to recommendations contained in legislation enacted in recent years has pre­ your subcommittee’s Eighteenth Report re­ sented a deterrent—less than absolute, but lating to “Crimes Against Banking Institu­ significantly effective—to the entry of orga­ tions.” When crimes occur, are detected, or nized crime into banks. Public Law 88-593, are suspected, immediate reports are made enacted in September of 1964, amended sec­ to the FBI and the Department of Justice, tion 7 of the Federal Deposit Insurance Act with requests for appropriate action. How­ to require that changes in control of any in­ ever, as best we can ascertain, these crimes sured bank resulting from a change in own­ seldom involve organized crime. In the very ership of voting stock must be reported to few instances where the presence or the the appropriate Federal banking agency. backing of organized crime in a member Similarly, under that law whenever any in­ bank was suspected, that suspicion and the sured bank makes a loan to be secured by circumstance giving rise to it have been 25 per cent or more of the outstanding vot­ known, or made known, to the Criminal ing stock of an insured bank the lending Division of the Justice Department and, to bank must report that fact to the appropriate the best of my knowledge, the Organized Federal banking agency. Compliance with Crime and Racketeering Section in particu­ the statutory requirement for reporting as­ lar. sures receipt by the several Federal agencies I think several reasons explain the mini­ of information regarding the stated identity mal extent, if any, to which organized crime of purchasers or borrowers, purchase price has attempted penetration of our banks. paid for the stock, and the amount of stock First, deposits of any large sums of money changing hands. With respect to reported such as are realized from the gambling op­ changes in ownership of State member erations, narcotics traffic, and other illegal banks, the Reserve Banks arc under instruc­ operations of the syndicates would immedi­ tions to ascertain and report to the Board on ately be suspect if placed in a single bank. the character of new ownership or manage­ It would seem to me impractical for the syn­ ment. While no statute, investigative proce­ dicates to attempt control of a sufficiently dure, or enforcement technique can assure large number of institutions to spread their absolutely against the successful use of deposits so as to avoid notice. Similarly sus­ “street names,” nominees, and third parties pect might be action in bulk withdrawal of with respect to acquisition and transfer of these funds, or, pursuant to dictate by a con­ bank stocks, the requirements of the “change trolling stockholder or directorate, removal in ownership” statute have made banks less in the form of cash dividends. Secondly, I susceptible to take-over by persons unquali­ believe that organized crime has found busi­ fied or unfit for such ownership. ness ventures far more profitable than com­ An additional statutory enactment which mercial banking as investment sources for we believe will prove quite effective in mini­ their illicit funds. The evidence presented at mizing possible operational control of banks your subcommittee’s 1967 hearings reveals by criminal elements, including representa­ the numerous pseudo-legitimate channels tives of organized crime, is the Federal Fi­ into which these funds can be placed with nancial Institutions Supervisory Act of the expectation of producing large income 1966. This statute gives to the Board, the while avoiding law enforcement detection. Comptroller of the Currency, and the Fed- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 eral Deposit Insurance Corporation the au­ ance Corporation, the Comptroller of the thority, limited by appropriate procedural Currency, and the several State bank super­ safeguards and requirement for precedent visors have achieved, in my judgment, a coordination with State supervisory author­ system of information exchange well calcu­ ities, to institute cease and desist proceedings lated to apprise each authority of facts and and proceedings to remove directors or of­ circumstances suggesting criminal activity ficers of banks under clearly prescribed cir­ within banks under their respective jurisdic­ cumstances. Without enumerating the sev­ tions. As I earlier indicated, within the Fed­ eral necessary findings required of the su­ eral Reserve System each of the Federal pervisory authorities before either the cease Reserve Banks reports to the FBI and/or and desist or the removal authority can be the U.S. Attorney criminal violations de­ exercised, suffice it to say that the exist­ tected in State member banks, or circum­ ence of the statutory authority, and the very stances that suggest a serious violation of real prospect of its imposition, constitute a law. Rarely do such reports involve organized considerable barrier to the entry into or con­ crime. The important point, however, is that tinued control of banks by elements of or­ our reporting system is such that if organized ganized crime. crime should be involved in a given case, Finally, I believe that one of the most even if unrecognized by our System officials, effective deterrents to the manipulation by there will immediately be brought into the organized crime of the resources of a com­ matter appropriate Federal investigatory mercial bank is the coordinated action be­ forces and techniques calculated to deal ef­ tween and among Federal and State law en­ fectively with the threat presented. forcement and supervisory authorities. I Mr. Chairman, I have given you my judg­ note that your subcommittee hearings time ment of the extent to which organized crime and again reflect the experienced judgment constitutes a present problem to the Board of the committee members and witnesses as a bank supervisory authority, and I have that cooperation and coordination between briefly indicated some of the steps we have and among law enforcement agencies were taken and are taking to combat crime at any the key to effective exposure and control of level and of whatever nature. Earlier in my organized crime in all areas of its operations. statement I referred to the danger which I concur wholeheartedly in that judgment organized crime posed for the entire nation. insofar as bank operations are concerned. In The remarks that I have made today on be­ 1964 the Board initiated contact with the half of the Board should not in any way be Department of Justice’s Organized Crime interpreted as an expression of total satisfac­ and Racketeering Section to the end that tion regarding results achieved in combating there could be an effective exchange of in­ the threat posed by organized crime. Each formation relating to any effort by organized day presents potential encounters with this crime to penetrate State member banks. Staff criminal element, necessitating continuing members of the Organized Crime and Rack­ efforts for informed and coordinated action eteering Section have, from their offices in between and among bank supervisory agen­ the field, requested and obtained from the cies and Federal and State investigative and Board’s staff information bearing on investi­ law enforcement agencies. I submit that the gations of organized crime then being pur­ record will reflect fully the efforts taken by sued. The Board, the Federal Deposit Insur­ this Board to cooperate with the investigative Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 131 and prosecutive arms of the Federal Govern­ policy shifted away from restraint and ment in support of their efforts at law en­ toward ease. Throughout the first half of forcement. I assure you of our resolve to 1967, policy provided a monetary climate continue such cooperative efforts to the end that facilitated the orderly adjustment of that the financial resources in the institutions business inventories and the recovery in supervised by the Board will be safeguarded homebuilding activity. At the same time, to the fullest extent possible against criminal fiscal policy became increasingly stimula­ activity of whatever nature, and we will re­ tive. The rise in Federal spending was main­ main especially alert to possible incursions tained, and the Federal deficit in the first by organized crime. half of 1967 reached the highest level since World War II. The combined monetary and fiscal stimu­ lus helped the economy to absorb a major Statement of William McChesney Martin, decline in inventory investment, from a rate Jr., Chairman, Board of Governors of the of over $18 billion in the fourth quarter of Federal Reserve System, before the Joint 1966 to less than $1 billion in the second Economic Committee, February 14, 1968. quarter of 1967, with minimal effects on production and employment. Industrial out­ I appreciate the opportunity of meeting put dropped by less than 3 per cent over again with this committee to discuss the the first half of the year, and unemployment state of the economy. It was just about a remained below 4 per cent for most of the year ago that we last met, then in a quite period. The resilience of our economy, and different economic context. At that time, the timely use of stabilization policies, were economic activity was faltering; business­ amply demonstrated in the first half of 1967. men were adjusting production schedules to Unfortunately, there is less reason to be reduce excessive inventories, investment in proud of the performance of the economy, new plant facilities was falling, and con­ or of stabilization policies, since mid-1967. sumer spending for durable goods was declin­ The zeal with which policies were adapted ing. Many doubted that the economy had to deal with a flagging economy has not sufficient resiliency to absorb a massive ad­ been matched by commensurate zeal in justment of inventories without a serious coping with the emergence of economic over­ recession. heating. The continuing large Federal deficit, Today we meet in a far different situation. in a period of rebounding private demands The economy is advancing at a rapid pace, on resources, has intensified the strains on labor resources are under strain, and costs markets for labor, commodities, and finan­ and prices are moving up swiftly. In short, cial capital. we are in the midst of inflation. Since the middle of last year, prices have The avoidance of recession in 1967—the risen at about 4 per cent annual rate, almost fact that we experienced only a pause, and twice as rapidly as earlier in the year. With not a reversal in economic expansion—was, in large measure, the result of prompt and labor markets tight—unemployment has vigorous application of the tools of stabili­ fallen to the lowest levels since the Korean zation policy. As early as the fall of 1966, war—the rise in prices is being translated when it first became evident that pressures into wage demands about twice as large as in the economy were abating, monetary the long-run gains in productivity. And the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 rise in our costs and prices has been an im­ demands leveling off, the rise in costs was portant factor in aggravating an already se­ not translated into higher prices. Industrial rious balance of payments deficit. commodity prices were stable from Febru­ The resurgence in economic activity and ary through July, and the advance in con­ in inflationary pressures after midyear-1967 sumer prices slowed significantly. did not come as a surprise. Anticipating But with the resurgence in aggregate de­ these developments, early in the year the mands after midyear, prices responded rap­ President recommended a fiscal program to idly, even though the rise in unit labor costs insure that the rebound in activity would moderated as production facilities began to not reach an excessive pace. In my appear­ be used more intensively. As soon as mar­ ance before this committee a year ago, I kets improved, past—and, indeed, prospec­ urged the immediate adoption of the Presi­ tive—cost increases were passed through the dent’s proposals, in order that the Govern­ structure of production and distribution. The ment could enter the period of renewed ex­ swift pace at which aggregate demands rose pansion in an appropriate fiscal posture. in the third and fourth quarters of last year Delay in getting our budgetary deficit un­ provided a climate in which costs could der control has been costly. The failure to more easily be passed on in the form of exercise prudence in fiscal management be­ higher industrial and consumer prices. The fore the forces of inflation gathered momen­ rise in prices has fueled higher wage de­ tum has resulted in major setbacks in achiev­ mands, laying the groundwork for another ing both our domestic and our international round of cost increases. And as long as over­ economic goals. all demands continue to rise too rapidly, Even now, with costs and prices advancing further cost pressures will be reflected in rapidly, we still are hesitating about taking further increases in prices of industrial and tax measures to restrain demands. Some consumer goods. fear that demand restrictions cannot curb an As for the issue of the economy’s capa­ inflation stemming from “cost-push.” Others bility of absorbing a tax increase, even a argue that nothing should be done about the cautious appraisal of economic prospects current inflation, because a recession lurks suggests a continued increase in demand around the corner. pressures this year. The basic strength of Let me address myself first to the econom­ expansionary forces in the economy has be­ ics of cost-push and demand-pull. It seems come evident since the termination of major to me that cost and price developments last work stoppages. For a few months, earlier year demonstrated once again how cost-push in the fall, strikes in the auto and other and demand-pull pressures interact to pro­ industries had held back the recovery in pro­ duce inflation. In the first half of 1967, costs duction and sales, resulting in economic sta­ rose rapidly, as wages continued to rise, and tistics that appeared to buttress the case of with production dipping, overhead costs had those who saw more weakness than strength to be spread over a smaller output. Unit in the economic outlook. When production labor costs in manufacturing, for example, rebounded at the end of the strikes, atten­ increased at an annual rate of almost 5Vi tion shifted to the apparent sluggishness of per cent, about twice as rapidly as in the retail sales around the Christmas period. The preceding year. Nevertheless, with over-all latest figures, however, reveal that consumer Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 133 spending is picking up rapidly, and unem­ continue untrammeled. And, as Budget Di­ ployment has fallen sharply. Now attention rector Zwick noted to this committee last is shifting to the possibility of weakness de­ week, the risks are obviously in the direction veloping next summer. of higher, rather than lower Federal spend­ At any point in time, there will be some ing, particularly in light of recent develop­ economic measures out of joint. And there ments in the Far East. will always be legitimate concern about the The risks, therefore, are almost all on the economic future. Forecasting economic de­ side of too much demand, rather than too velopments is still an art, not yet a science, little. And the greatest danger to sustained and no one can pretend to certainty about expansion throughout the year is not that the outlook. the economy might be too weak to absorb At this point in time, however, the great a tax increase, but that inflation will result weight of the evidence is on the side of in the excesses and distortions that inevitably expectations for continued strong expansion lead to economic setbacks. A failure to exer­ in demands. Even if consumers should con­ cise firm fiscal restraint will create an eco­ tinue to save a high proportion of their after­ nomic climate conducive to excessive inven­ tax incomes, consumer spending would rise tory building and excessive plant expansion, substantially as incomes accelerate. Some re­ only to be followed by cutbacks in output duction in business inventory accumulation and employment as businessmen have to re­ is likely next summer, particularly in the store balance in their stocks, labor force, and stockpiling of steel. But the adjustment in capacity. It will encourage inflationary wage steel inventories after the conclusion of wage settlements that can be accommodated only negotiations in 1965 had little effect in re­ by further price increases, diminishing both tarding expansion then, and there is no more the potential for domestic sales and the pos­ reason to expect a serious impact on over­ sibility of regaining export markets, while all economic activity from this source in attracting imports of foreign goods. And if 1968. Moreover, even with a tax increase the Government is forced to continue bor­ and restraint on Government spending, the rowing vast sums in financial markets to fi­ Federal budget would still be providing a nance another large deficit, the availability significant net stimulus to the economy. We of funds to sustain homebuilding at a high need no splurge in retail sales, or boom in level will be seriously curtailed. investment spending, or excessive run-up in The financing of home construction is in business inventories, to avert a recession this a somewhat better position to compete for year. funds than in 1966, for the liquidity position Indeed, the greater risk is that expansion­ of thrift institutions improved considerably ary forces will accelerate too rapidly and add last year. But home financing cannot be further to inflationary pressures. Consumers’ insulated from strong financial market forces. spending propensities are more likely to rise The pressure of corporate and Federal fi­ than to fall, as incomes accelerate and the nancing demands has already begun to pinch workweek lengthens. Business plans to in­ the flow of funds to mortgage lenders. Sav­ crease capital outlays, now modest, are more ings inflows at thrift institutions have been likely to be revised upward than downward, reduced, growth in the volume of commit­ if the increase in final demands and in prices ments for future mortgage lending has slowed Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 appreciably, and interest rates on mortgages restraint were initially accompanied by some have returned to the peaks of 1966. easing of tensions in financial markets, Increases in the cost of mortgage financ­ partly as a result of seasonal and other tem­ ing and mounting pressures on the avail­ porary factors. More recently, however, pres­ ability of mortgage funds recurred last year sures have returned to financial markets, in­ even though monetary policy remained ex­ terest rates on market securities have been pansive through the summer and early fall. rising, and the flow of funds to institutions Monetary ease was maintained, despite the specializing in housing finance is once again reemergence of inflationary pressures during being threatened. the summer, to avoid a premature curtail­ In the absence of fiscal restraint, it may ment of the recovery in housing and aggra­ well prove impossible to avoid a contraction vation of the strains in domestic and inter­ in the availability of credit to those sectors national financial markets resulting from the of the economy least capable of withstand­ record volume of Treasury borrowing ac­ ing competitive pressures for funds. Housing companied by a record volume of capital finance, in particular, continues to be ham­ market financing by corporations and State pered by rigidities and imperfections that and local governments. Moreover, the fiscal cannot swiftly be removed, and difficulties restraint program submitted by the President could be faced by many municipal and small in early August offered the best prospect of business borrowers. Financing a continuing relief from the tensions developing in finan­ large Government deficit would absorb a dis­ cial markets and from the inflationary ef­ proportionate share of financial savings. fects of growing demand pressures on real And with real resources strained, prices in­ resources. creasing, and our balance of payments in But with fiscal restraint held in abeyance, difficulty, monetary policy could not irre­ with inflationary pressures accentuating fol­ sponsibly permit the creation of credit on a lowing termination of strikes in the auto and scale that would accommodate all the pri­ other industries, and with pressure on the vate financing demands that inflation would international position of the dollar mounting generate. after the devaluation of sterling, a shift was To permit inflationary pressures to con­ made later in the fall to a less expensive tinue unchecked would dissipate the oppor­ monetary policy. The initial step—a one- tunity that the new balance of payments pro­ half point increase in the discount rate fol­ gram is intended to provide, namely, the lowing the British devaluation—was a mod­ time to effect fundamental corrections in our est precautionary move in a situation of grave position. How much we need an improve­ uncertainties; in fact, some in the System ex­ ment in our international competitiveness pressed a preference for a larger move to was illustrated dramatically by the behavior restraint at the time. In December as prices of the U.S. trade balance during 1967. The continued to advance rapidly, gold losses rise in imports had halted in early 1967, as mounted, and our international trade bal­ aggregate demands in our economy leveled ance diminished, an increase in member off, but with the resurgence in activity, im­ bank reserve requirements was announced, and open market operations were adjusted ports spurted to a new high by year-end. For to support this less expansionary policy. the year as a whole, our merchandise im­ These moderate moves toward monetary ports were up 51^ per cent over the preced- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 135 ing year, and almost half again as large as but not on so large a scale, and there was in 1964. a moderate outflow of bank loans and credits Our exports last year did not do as well last year, reversing the inflows of such funds as we had hoped they would. They rose only in 1965 and 1966. Also, net liquidation of 416 per cent for the year as a whole, and foreign equity securities by U.S. investors, in actually declined in the last quarter. Our response to the interest equalization tax, merchandise trade balance, which had came to an end in 1967. Thus, after the tem­ reached nearly $7 billion in 1964, dwindled porary favorable circumstances affecting to less than $4 billion in 1967. capital flows in 1966 were gone, a large Factors operating to dampen the demand over-all deficit reemerged in 1967. for our exports were particularly important In the context of a large and persistent last year—such as the recession in Germany deficit in the U.S. balance of payments, the and the effects of the slack conditions in devaluation of sterling last November un­ leading European countries on demands in settled gold and foreign exchange markets. many parts of the world. It is gratifying, Nevertheless, we have no evidence of any therefore, that several European countries large flight out of dollars into either gold or are using monetary and fiscal policies aimed foreign currencies. In fact, foreign private at encouraging domestic expansion. Growth holdings of liquid dollar assets in the United in economic activity and maintenance of States continued to show a net increase dur­ relatively easy credit conditions in Europe ing the fourth quarter of 1967. A great deal are vital complements to the President’s pro­ of the purchasing of gold in recent months gram to reduce the United States balance of was done, we think, by people who were payments deficit. But economic expansion shifting out of sterling or out of continental abroad will not, by itself, be sufficient to currencies, rather than out of dollars. produce a better balance in the pattern of Over the longer pull, however, we cannot international payments. We must temper the depend on retaining the confidence of for­ rise in demands here, in order to avoid eign holders of dollar assets unless we con­ surges in imports and to keep our exports duct our economic affairs in such a way as competitive. Serious as is the deterioration in our inter­ to deserve confidence. The new balance of national trading position, it was on the capi­ payments program announced on New tal side of the payments balance that worsen­ Year’s Day by the President is addressed ing was most acute last year. Shifts in capi­ principally to reducing certain types of capi­ tal flows accounted for most of the change tal outflows, partcularly direct investment from a balance of payments deficit of about outflows and bank lending. But such restric­ $116 billion in 1966, on the liquidity basis, tions on particular types of international to one of about $316 billion in 1967. transactions cannot be relied on in the long In 1966, an unusual constellation of fac­ run to assure sustained equilibrium in the tors had held down the net outflow of capi­ over-all U.S. payments position. Public and tal. Taut financial market conditions in this private restraint in demands on our re­ country pulled in a large amount of foreign sources will be an essential element in the private liquid funds in 1966. There was still success of the United States in correcting its a net inward flow of such funds in 1967, balance of payments problem. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 To summarize this brief review of the key failure to restrain inflation could have for developments and problems in public policy our economy, both domestically and inter­ formulation over the past year, it is clear nationally. The Congress should act now to that we have, as a nation, greater readiness provide the fiscal restraint we need to sus­ to combat recession than to cope with infla­ tain a balanced expansion and to protect the tion, despite the grave consequences that value of the dollar at home and abroad. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches Following is a list of the directorates of the Federal Reserve Banks and branches as at present con­ stituted. The list shows, in addition to the name of each director, his principal business affiliation, the class of directorship, and the date when his term expires. Each Federal Reserve Bank has nine directors; three Class A and three Class B directors, who are elected by the stockholding member banks, and three ClassiC directors, who are appointed by the Board of Governors of the Federal Reserve System. Class A directors are representative of the stockholding member banks. Class B directors must be actively engaged in their district in commerce, agriculture, or some industrial pursuit, and may not be officers, directors, or employees of any bank. For the purpose of electing Class A and Class B directors, the member banks of each Federal Reserve district are classified by the Board of Governors of the Federal Reserve System into three groups, each of which consists of banks of similar capitalization, and each group elects one Class A and one Class B director. Class C directors may not be officers, directors, employees, or stockholders of any bank. One Class C director is designated by the Board of Governors as Chairman of the Board of Directors and Federal Reserve Agent and another as Deputy Chairman. Federal Reserve Bank branches have either five or seven directors, of whom a majority are appointed by the board of directors of the parent Federal Reserve Bank and the others are appointed by the Board of Governors of the Federal Reserve System. One of the directors appointed by the Board of Governors at each branch is designated annually as Chairman of the Board in such manner as the Federal Reserve Bank may prescribe. District 1—FEDERAL RESERVE BANK OF BOSTON Term Expires Class A: Dec. 31 Lawrence H. Martin Chairman, Chief Executive Officer, The National Shawmut Bank, Boston, Mass. 1968 Charles A. Beaujon, Jr. President, The Canaan National Bank, Canaan, Conn. 1969 William R. Kennedy President, Merrimack Valley National Bank, Haverhill, Mass. 1970 Class B: W. Gordon Robertson Chairman, Chief Executive Officer, Bangor Punta Corporation, Bangor, Maine 1968 F. Ray Keyser, Jr. Counsel, Vermont Marble Company, Proctor, Vt. 1969 James R. Carter President, Nashua Corporation, Nashua, N.H. 1970 Class C: Charles W. Cole 2 President Emeritus, Amherst College, Amherst, Mass. 1968 Howard W. Johnson 1 President, Massachusetts Institute of Technology, Cambridge, Mass. 1969 John M. Fox Chairman of the Board, United Fruit Company, Boston, Mass. 1970 1 Chairman 2 Deputy Chairman 137 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 2—FEDERAL RESERVE BANK OF NEW YORK Term Expires Class A: Dec. 31 Robert G. Cowan Chairman of the Board, National Newark & Essex Bank, Newark, N.J. 1968 Eugene H. Morrison President, Orange County Trust Company, Middletown, N.Y. 1969 R. E. McNeill, Jr. Chairman of the Board, Manufacturers Hanover Trust Com­ pany, New York, N.Y. 1970 Class B: Milton C. Mumford Chairman of the Board, Lever Brothers Company, New York, N.Y. 1968 Maurice R. Forman President, B. Forman Co., Inc., Rochester, N.Y. 1969 Arthur K. Watson Chairman of the Board, IBM World Trade Corporation, Vice Chairman of the Board, International Business Machines Corporation, Armonk, N.Y. 1970 Class C: Kenneth H. Hannan 2 Executive Vice President, Union Carbide Corporation, New York, N.Y. 1968 Everett N. Case1 President, Alfred P. Sloan Foundation, New York, N.Y. 1969 James M. Hester President, New York University, New York, N.Y. 1970 BUFFALO BRANCH Appointed by Federal Reserve Bank: Arthur S. Hamlin President, The Canandaigua National Bank and Trust Com­ pany, Canandaigua, N.Y. 1968 E. Perry Spink Chairman of the Board, Liberty National Bank and Trust Com­ pany, Buffalo, N.Y. 1969 Wilmot R. Craig Chairman of the Board, Director, Lincoln Rochester Trust Company, Rochester, N.Y. 1970 Charles L. Hughes President, The Silver Creek National Bank, Silver Creek, N.Y. 1970 Appointed by Board of Governors; Norman F. Beach Vice President, Eastman Kodak Company, Rochester, N.Y. 1968 Gerald F. Britt President, L-Brooke Farms, Inc., Byron, N.Y. 1969 Robert S. Bennett 1 General Manager, Lackawanna Plant, Bethlehem Steel Cor­ poration, Buffalo, N.Y. 1970 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA Class A: Howard C. Petersen Chairman of the Board, The Fidelity Bank, Philadelphia, Pa. 1968 Robert C. Enders President, Bloomsburg Bank - Columbia Trust Company, Bloomsburg, Pa. 1969 H. Lyle Duffey Executive Vice President, The First National Bank, McCon­ nellsburg, Pa. 1970 1 Chairman 2 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 139 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued Term Expires Class B: Dec. 31 Henry A. Thouron Chairman of the Board, President, Hercules, Incorporated, Wil­ mington, Del. 1968 Edward J. Dwyer President, ESB Incorporated, Philadelphia, Pa. 1969 Philip H. Glatfelter, III President, P. H. Glatfelter Co., Spring Grove, Pa. 1970 Class C: D. Robert Yarnall, Jr. President, Yarway Corporation, Blue Bell, Pa. 1968 Bayard L. England a Chairman of the Board, Atlantic City Electric Company, Atlantic City, N.J. 1969 Willis J. Winn 1 Dean, Wharton School of Finance and Commerce, University of Pennsylvania, Philadelphia, Pa. 1970 District 4—FEDERAL RESERVE BANK OF CLEVELAND Class A: Everett D. Reese Director, Former Chairman of the Board, The City National Bank and Trust Company, Columbus, Ohio 1968 Richard R. Hollington President, The Ohio Bank and Savings Company, Findlay, Ohio 1969 Seward D. Schooler President, Coshocton National Bank, Coshocton, Ohio 1970 Class B: Walter K. Bailey Director, Former Chairman of the Board, The Warner and Swasey Company, Cleveland, Ohio 1968 R. Stanley Laing President, The National Cash Register Company, Dayton, Ohio 1969 John L. Gushman President, Chief Executive Officer, Anchor Hocking Glass Cor­ poration, Lancaster, Ohio 1970 Class C: Logan T. Johnston 3 Chairman of the Board, Armco Steel Corporation, Middletown, Ohio 1968 Albert G. Clay1 President, Clay Tobacco Company, Mt. Sterling, Ky. 1969 J. Ward Keener Chairman of the Board, Chief Executive Officer, The B. F. Goodrich Company, Akron, Ohio 1970 CINCINNATI BRANCH Appointed by Federal Reserve Bank: Jacob H. Graves President, The Second National Bank and Trust Company, Lexington, Ky. 1968 John W. Humphrey President, Chairman of the Board, The Philip Carey Manufac­ turing Company, Lockland, Cincinnati, Ohio 1969 Robert J. Barth President, The First National Bank, Dayton, Ohio 1969 Fletcher E. Nyce President, The Central Trust Company, Cincinnati, Ohio 1970 1 Chairman 2 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

140 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued CINCINNATI BRANCH—Continued Term Expires Appointed by Board of Governors: Dec. 31 Graham E. Marx 1 President, General Manager, The G. A. Gray Company, Cin­ cinnati, Ohio 1968 John N. Stauffer President, Wittenberg University, Springfield, Ohio 1969 Orin E. Atkins President, Ashland Oil & Refining Company, Ashland, Ky. 1970 PITTSBURGH BRANCH Appointed by Federal Reserve Bank: Robert C. Hazlett President, Wheeling Dollar Savings & Trust Co., Wheeling, W. Va. 1968 Charles M. Beeghly Chairman of the Board, Chief Executive Officer, Jones and Laughlin Steel Corporation, Pittsburgh, Pa. 1969 Thomas L. Wentling President, First National Bank of Westmoreland, Greensburg, Pa. 1969 George S. Cook President, Somerset Trust Company, Somerset, Pa. 1970 Appointed by Board of Governors: F. L. Byrom 1 President, Chief Executive Officer, Koppers Company, Inc., Pittsburgh, Pa. 1968 Lawrence E. Walkley President, Westinghouse Air Brake Company, Pittsburgh, Pa. 1969 (Vacancy) 1970 District 5—FEDERAL RESERVE BANK OF RICHMOND Class A: William A. Davis President, The Peoples Bank, Mullens, W. Va. 1968 Robert C. Baker President, Chairman of the Board, American Security and Trust Company, Washington, D.C. 1969 Giles H. Miller President, The Culpeper National Bank, Culpeper, Va. 1970 Class B: Charles D. Lyon President, The Potomac Edison Company, Hagerstown, Md. 1968 Thaddeus Street President, Carolina Shipping Company, Charleston, S.C. 1969 H. Dail Holderness President, Carolina Telephone and Telegraph Company, Tar­ boro, N.C. 1970 Class C: Wilson H. Elkins1 President, University of Maryland, College Park, Md. 1968 Robert W. Lawson, Jr.2 Managing Partner of Charleston Office, Steptoe and Johnson, Charleston, W. Va. 1969 Stuart Shumate President, Richmond, Fredericksburg and Potomac Railroad Company, Richmond, Va. 1970 1 Chairman 2 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 141 BALTIMORE BRANCH Term Expires Appointed by Federal Reserve Bank: Dec. 31 Joseph B. Browne President, Union Trust Company of Maryland, Baltimore, Md. 1968 John P. Sippel President, The Citizens National Bank, Laurel, Md. 1969 Adrian L. McCardell President, First National Bank of Maryland, Baltimore, Md. 1970 James J. Robinson Executive Vice President, Cashier, Bank of Ripley, W. Va. 1970 Appointed by Board of Governors: E. Wayne Corrin 1 President, Consolidated Gas Supply Corporation, Clarksburg, W. Va. 1968 Arnold J. Kleff, Jr. Manager, Baltimore Plant, American Smelting and Refining Company, Baltimore, Md. 1969 John H. Fetting, Jr. President, A. H. Fetting Company, Baltimore, Md. 1970 CHARLOTTE BRANCH Appointed by Federal Reserve Bank: G. Harold Myrick President, Trust Officer, First National Bank, Lincolnton, N.C. 1968 J. Willis Cantey President, The Citizens and Southern National Bank of South Carolina, Columbia, S.C. 1969 C. C. Cameron Chairman of the Board, President, First Union National Bank of North Carolina, Charlotte, N.C. 1970 H. Phelps Brooks, Jr. President, Trust Officer, The Peoples National Bank, Chester, S.C. 1970 Appointed by Board of Governors: John L. Fraley Executive Vice President, Carolina Freight Carriers Corpora­ tion, Cherryville, N.C. 1968 James A. Morris 1 Vice President, Division of Advanced Studies and Research, University of South Carolina, Columbia, S.C. 1969 William B. McGuire President, Duke Power Company, Charlotte, N.C. 1970 District 6—FEDERAL RESERVE BANK OF ATLANTA Class A: John W. Gay President, The First National Bank, Scottsboro, Ala. 1968 William B. Mills President, The Florida National Bank, Jacksonville, Fla. 1969 A. L. Ellis Chairman, First National Bank, Tarpon Springs, Fla. 1970 Class B: Harry T. Vaughn President, United States Sugar Corporation, Clewiston, Fla. 1968 Philip J. Lee Vice President, Seaboard Coast Line Railroad Company, Jack­ sonville, Fla. 1969 Hoskins A. Shadow President, Tennessee Valley Nursery, Inc., Winchester, Tenn. 1970 1 Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued Term Expires Class C: Dec. 31 Edwin I. Hatch1 President, Georgia Power Company, Atlanta, Ga. 1968 John A. Hunter President, Louisiana State University, Baton Rouge, La. 1969 John C. Wilson 8 President, Horne-Wilson, Inc., Atlanta, Ga. 1970 BIRMINGHAM BRANCH Appointed by Federal Reserve Bank: Major W. Espy Chairman, The Headland National Bank, Headland, Ala. 1968 Will T. Cothran President, Birmingham Trust National Bank, Birmingham, Ala. 1969 Arthur L. Johnson President, Camden National Bank, Camden, Ala. 1970 George A. LeMaistre President, City National Bank, Tuscaloosa, Ala. 1970 Appointed by Board of Governors: Eugene C. Gwaltney, Jr. Vice President, Russell Mills, Inc., Alexander City, Ala. 1968 Mays E. Montgomery1 General Manager, Dixie Home Feeds Company, Athens, Ala. 1969 C. Caldwell Marks Chairman of the Board, Owens-Richards Company, Inc., Birm­ ingham, Va. 1970 JACKSONVILLE BRANCH Appointed by Federal Reserve Bank: Andrew P. Ireland Chairman, President, The American National Bank and Trust Co., Winter Haven, Fla. 1968 L. V. Chappell President, First National Bank, Clearwater, Fla. 1969 Harry Hood Bassett Chairman, The First National Bank, Miami, Fla. 1970 John Y. Humphress Executive Vice President, Capital City First National Bank, Tallahassee, Fla. 1970 Appointed by Board of Governors: Castle W. Jordan 1 President, Associated Oil and Gas Company, Coral Gables, Fla. 1968 Henry King Stanford President, University of Miami, Coral Gables, Fla. 1969 Henry Cragg Chairman of the Board, Chief Executive Officer, Minute Maid Company, Orlando, Fla. 1970 NASHVILLE BRANCH Appointed by Federal Reserve Bank: Moses E. Dorton President, The First National Bank, Crossville, Tenn. 1968 Andrew Benedict President, First American National Bank, Nashville, Tenn. 1969 H. A. Crouch, Jr. President, The First National Bank, Tullahoma, Tenn. 1970 W. H. Swain President, First National Bank, Oneida, Tenn. 1970 Appointed by Board of Governors: Alexander Heard 1 Chancellor, Vanderbilt University, Nashville, Tenn. 1968 James E. Ward Chairman, Baird-Ward Printing Company, Nashville, Tenn. 1969 Robert M. Williams President, ARO, Inc., Arnold Engineering Development Center, Tullahoma, Tenn. 1970 1 Chairman “Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 143 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued NEW ORLEANS BRANCH Term Expires Appointed by Federal Reserve Bank: Dec. 31 Donald L. Delcambre President, The State National Bank, New Iberia, La. 1968 A. L. Gottsche President, First National Bank, Biloxi, Miss. 1969 Lucien J. Hebert, Jr. Executive Vice President, Lafourche National Bank, Thibodaux, La. 1970 Morgan Whitney Vice President, Whitney National Bank, New Orleans, La. 1970 Appointed by Board of Governors: Frank G. Smith, Jr. Vice President, Mississippi Power and Light Company, Jackson, Miss. 1968 George B. Blair1 General Manager, American Rice Growers Cooperative Asso­ ciation, Lake Charles, La. 1969 Robert H. Radcliff, Jr. President, Southern Industries Corporation, Mobile, Ala. 1970 District 7—FEDERAL RESERVE BANK OF CHICAGO Class A: Harry W. Schaller President, The Citizens First National Bank, Storm Lake, Iowa 1968 Kenneth V. Zwiener Chairman of the Board, Harris Trust and Savings Bank, Chicago, Ill. 1969 Melvin C. Lockard President, First National Bank, Mattoon, Ill. 1970 Class B: Joseph O. Waymire Vice President for Finance, Eli Lilly and Company, Indian­ apolis, Ind. 1968 William H. Davidson President, Harley-Davidson Motor Company, Milwaukee, Wis. 1969 Howard M. Packard Chairman of the Finance Committee, S. C. Johnson & Son, Inc., Racine, Wis. 1970 Class C: Elvis J. Stahr 2 President, Indiana University, Bloomington, Ind. 1968 Emerson G. Higdon President, Treasurer, The Maytag Company, Newton, Iowa 1969 Franklin J. Lunding 1 Chairman of the Finance Committee, Jewel Companies, Inc., Chicago, Ill. 1970 DETROIT BRANCH Appointed by Federal Reserve Bank: B. P. Sherwood, Jr. President, Security First Bank and Trust Company, Grand Haven, Mich. 1968 John H. French, Jr. President, City National Bank, Detroit, Mich. 1969 George L. Whyel President, Genesee Merchants Bank and Trust Company, Flint, Mich. 1969 Raymond T. Perring Chairman of the Board, The Detroit Bank and Trust Company, Detroit, Mich. 1970 1 Chairman 2 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 7—FEDERAL RESERVE BANK OF CHICAGO—Continued DETROIT BRANCH—Continued Term Expires Appointed by Board of Governors: Dec. 3! Guy S. Peppiatt Chairman of the Board, Federal-Mogul Corporation, Detroit, Mich. 1968 Max P. Heavenrich, Jr.1 President, Heavenrich Bros. & Company, Saginaw, Mich. 1969 L. William Seidman General Partner, Seidman & Seidman, Grand Rapids, Mich. 1970 District 8—FEDERAL RESERVE BANK OF ST. LOUIS Class A: Harry F. Harrington Chairman of the Board, The Boatmen’s National Bank, St. Louis, Mo. 1968 Cecil W. Cupp, Jr. President, Arkansas Bank and Trust Company, Hot Springs, Ark. 1969 Bradford Brett President, The First National Bank, Mexico, Mo. 1970 Class B: Sherwood J. Smith Vice President, Whirlpool Corporation, Evansville, Ind. 1968 Roland W. Richards Senior Vice President, Laclede Steel Company, St. Louis, Mo. 1969 Mark Townsend Chairman of the Board, Townsend Lumber Company, Inc., Stuttgart, Ark. 1970 Class C: Frederic M. Peirce 1 President, General American Life Insurance Company, St. Louis, Mo. 1968 William King Self President, Riverside Industries, Marks, Miss. 1969 Smith D. Broadbent, Jr.2 Owner, Broadbent Hybrid Seed Co., Cadiz, Ky. 1970 LITTLE ROCK BRANCH Appointed by Federal Reserve Bank: Louis E. Hurley President, The Exchange Bank & Trust Company, El Dorado, Ark. 1968 Ellis E. Shelton President, The First National Bank, Fayetteville, Ark. 1969 Wayne A. Stone President, Simmons First National Bank, Pine Bluff, Ark. 1969 Edward M. Penick President, Chief Executive Officer, Worthen Bank and Trust Company, Little Rock, Ark. 1970 Appointed by Board of Governors: Carey V. Stabler President, Little Rock University, Little Rock, Ark. 1968 Jake Hartz, Jr.1 President, Jacob Hartz Seed Co., Inc., Stuttgart, Ark. 1969 Reeves E. Ritchie President, Arkansas Power & Light Company, Little Rock, Ark. 1970 LOUISVILLE BRANCH John H. Hardwick Chairman, Chief Executive Officer, The Louisville Trust Com­ pany, Louisville, Ky. 1968 Wm. G. Deatherage President, Planters Bank & Trust Co., Hopkinsville, Ky. 1969 Paul Chase President, The Bedford National Bank, Bedford, Ind. 1969 J. E. Miller Executive Vice President, Sellersburg State Bank, Sellersburg, Ind. 1970 1 Chairman “Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 145 District 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued LOUISVILLE BRANCH—Continued Term Expires Appointed by Board of Governors: Dec. 31 C. Hunter Green 1 Vice President, Southern Bell Telephone and Telegraph Com­ pany, Louisville, Ky. 1968 Lisle Baker, Jr. Executive Vice President, The Courier-Journal & Louisville Times Company, Louisville, Ky. 1969 Harry M. Young, Jr. Farmer, Herndon, Ky. 1970 MEMPHIS BRANCH Appointed by Federal Reserve Bank: W. W. Hollowell President, The First National Bank, Greenville, Miss. 1968 Allen Morgan President, The First National Bank, Memphis, Tenn. 1969 Con T. Welch President, Citizens Bank, Savannah, Tenn. 1969 J. J. White President, Helena National Bank, Helena, Ark. 1970 Appointed by Board of Governors: Sam Cooper 1 President, HumKo Products Division, National Dairy Products Corporation, Memphis, Tenn. 1968 William L. Giles President, Mississippi State University, State College, Miss. 1969 James S. Williams Assistant Vice President, American Greetings Corporation, Osceola, Ark. 1970 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS Class A: Curtis B. Mateer Executive Vice President, The Pierre National Bank, Pierre, S.D. 1968 John Bosshard Executive Vice President, First National Bank, Bangor, Wis. 1969 Warren F. Vaughan Vice President, Security Trust & Savings Bank, Billings, Mont. 1970 Class B: John H. Toole President, Toole and Easter Company, Missoula, Mont. 1968 Leo C. Studness Manager, Studness Company, Devils Lake, N.D. 1969 Neil G. Simpson President, Black Hills Power and Light Company, Rapid City, S.D. 1970 Class C: Robert F. Leach 2 Attorney, Oppenheimer, Hodgson, Brown, Wolff and Leach, St. Paul, Minn. 1968 Joyce A. Swan 1 Executive Vice President, Publisher, Minneapolis Star and Tribune, Minneapolis, Minn. 1969 Byron W. Reeve President, Lake Shore, Inc., Iron Mountain, Mich. 1970 1 Chairman 3 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS—Continued HELENA BRANCH Term Expires Appointed by Federal Reserve Bank: Dec. 31 Charles H. Brocksmith President, First Security Bank of Glasgow N.A., Glasgow, Mont. 1968 Glenn H. Larson President, First State Bank, Thompson Falls, Mont. 1968 B. Meyer Harris President, The Yellowstone Bank, Laurel, Mont. 1969 Appointed by Board of Governors: C. G. McClave 1 President, Montana Flour Mills Company, Great Falls, Mont. 1968 Edwin G. Koch President, Montana College of Mineral Science and Technology, Butte, Mont. 1969 District 10—FEDERAL RESERVE BANK OF KANSAS CITY Class A: Burton L. Lohmuller Chairman of the Board, The First National Bank, Centralia, Kans. 1968 Eugene H. Adams President, The First National Bank, Denver, Colo. 1969 Kenneth H. Peters President, The First State Bank, Larned, Kans. 1970 Class B: Stanley Learned Vice Chairman, Phillips Petroleum Company, Bartlesville, Okla. 1968 Fred W. Gilmore President, Union Stock Yards Company, Omaha, Nebr. 1969 Alfred E. Jordan Vice President, Trans World Airlines, Inc., Kansas City, Mo. 1970 Class C: Dean A. McGee 2 Chairman of the Board, Kerr-McGee Corporation, Oklahoma City, Okla. 1968 Willard D. Hosford, Jr. Vice President, General Manager, John Deere Company, Omaha, Nebr. 1969 Dolph Simons ’ Editor, President, The Lawrence Daily Journal-World, Law­ rence, Kans. 1970 DENVER BRANCH Appointed by Federal Reserve Bank: J. P. Brandenburg President, The First State Bank, Taos, N.M. 1968 Theodore D. Brown President, The Security State Bank, Sterling, Colo. 1968 Armin B. Barney Chairman of the Board, Colorado Springs National Bank, Colo­ rado Springs, Colo. 1969 Appointed by Board of Governors: D. R. C. Brown President, Aspen Skiing Corporation, Aspen, Colo. 1968 Cris Dobbins1 Chairman, Ideal Basic Industries, Inc., Denver, Colo. 1969 1 Chairman 2 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 147 District 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued OKLAHOMA CITY BRANCH Term Expires Appointed by Federal Reserve Bank: Dec. 31 Guy L. Berry, Jr. President, The American National Bank and Trust Company, Sapulpa, Okla. 1968 C. M. Crawford President, First National Bank, Frederick, Okla. 1968 Howard J. Bozarth President, City National Bank and Trust Company, Oklahoma City, Okla. 1969 Appointed by Board of Governors: F. W. Zaloudek Manager, J. L Case Equipment Agency, Kremlin, Okla. 1968 C. W. Flint, Jr.1 Chairman of the Board, Flint Steel Corporation, Tulsa, Okla. 1969 OMAHA BRANCH Appointed by Federal Reserve Bank: W. B. Millard, Jr. Chairman of the Board, Omaha National Bank, Omaha, Nebr. 1968 John W. Hay, Jr. President, Rock Springs National Bank, Rock Springs, Wyo. 1969 S. N. Wolbach President, First National Bank, Grand Island, Nebr. 1969 Appointed by Board of Governors: Henry Y. Kleinkauf1 President, Natkin & Company, Omaha, Nebr. 1968 A. James Ebel Vice President, General Manager, Cornhusker Television Cor­ poration, Lincoln, Nebr. 1969 District 11—FEDERAL RESERVE BANK OF DALLAS Class A: Ralph A. Porter President, The State National Bank, Denison, Tex. 1968 Murray Kyger Chairman of the Board, The First National Bank, Fort Worth, Tex. 1969 J. V. Kelly President, The Peoples National Bank, Belton, Tex. 1970 Class B: J. B. Perry, Jr. Real Estate Investments and Development, Lufkin, Tex. 1968 C. A. Tatum, Jr. President, Chief Executive Officer, Texas Utilities Company, Dallas, Tex. 1969 Carl D. Newton President, Fox-Stanley Photo Products, Inc., San Antonio, Tex. 1970 Class C: Kenneth S. Pitzer President, Professor of Chemistry, Rice University, Houston, Tex. 1968 Max Levine2 Retired Chairman of the Board, Foley’s, Houston, Tex. 1969 Carl J. Thomsen 1 Senior Vice President, Texas Instruments Incorporated, Dallas, Tex. 1970 1 Chairman ' Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 11—FEDERAL RESERVE BANK OF DALLAS—Continued EL PASO BRANCH Term Expires Appointed by Federal Reserve Bank: Dec. 31 Joe B. Sisler President, The Clovis National Bank, Clovis, N.M. 1968 Robert W. Heyer Director, Consultant, Southern Arizona Bank & Trust Com­ pany, Tucson, Ariz. 1969 Archie B. Scott President, The Security State Bank, Pecos, Tex. 1969 Robert F. Lockhart President, The State National Bank, El Paso, Tex. 1970 Appointed by Board of Governors: Joseph M. Ray1 President, The University of Texas, El Paso, Tex. 1968 C. Robert McNally, Jr. Rancher, Roswell, N.M. 1969 Gordon W. Foster Vice President, Director, Farah Manufacturing Company, Inc., El Paso, Tex. 1970 HOUSTON BRANCH Appointed by Federal Reserve Bank: Henry B. Clay President, First Bank & Trust, Bryan, Tex. 1968 W. G. Thornell President, The First National Bank, Port Arthur, Tex. 1969 John E. Whitmore President, Texas National Bank of Commerce, Houston, Tex. 1969 A. G. McNeese, Jr. Chairman of the Board, Bank of the Southwest National Asso­ ciation, Houston, Tex. 1970 Appointed by Board of Governors: R. M. Buckley President, Director, Eastex Incorporated, Silsbee, Tex. 1968 Geo. T. Morse, Jr.1 President, General Manager, Peden Iron & Steel Company, Houston, Tex. 1969 M. Steele Wright, Jr. President, General Manager, Texas Farm Products Company, Nacogdoches, Tex. 1970 SAN ANTONIO BRANCH Appointed by Federal Reserve Bank: James T. Denton, Jr. President, Corpus Christi Bank and Trust, Corpus Christi, Tex. 1968 J. R. Thornton Chairman of the Board, President, State Bank and Trust Com­ pany, San Marcos, Tex. 1969 T. C. Frost, Jr. President, The Frost National Bank, San Antonio, Tex. 1969 Ray M. Keck, Jr. President, Union National Bank, Laredo, Tex. 1970 Appointed by Board of Governors: Francis B. May 1 Chairman, Department of General Business, Professor of Busi­ ness Statistics, The University of Texas, Austin, Tex. 1968 W. A. Belcher Veterinarian, Rancher, Brackettville, Tex. 1969 Lloyd M. Knowlton General Manager, Partner, Knowlton’s Creamery, San Antonio, Tex. 1970 1 Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DIRECTORS RESERVE BANKS AND BRANCHES 149 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO Term Expires Class A: Dec. 31 Ralph V. Arnold Chairman, Chief Executive Officer, First National Bank and Trust Company, Ontario, Calif. 1968 Carroll F. Byrd Chairman, President, The First National Bank, Willows, Calif. 1969 Charles F. Frankland Chairman, Chief Executive Officer, The Pacific National Bank, Seattle, Wash. 1970 Class B: Herbert D. Armstrong Treasurer, Standard Oil Company of California, San Francisco, Calif. 1968 Joseph Rosenblatt Honorary Chairman, The Eimco Corporation, Salt Lake City, Utah 1969 Marron Kendrick President, Schlage Lock Company, San Francisco, Calif. 1970 Class C: Bernard T. Rocca, Jr. Chairman, Pacific Vegetable Oil Corporation, San Francisco, Calif. 1968 S. Alfred Halgren 2 Senior Vice President, Director, Carnation Company, Los Angeles, Calif. 1969 (Vacancy)1 1970 LOS ANGELES BRANCH Appointed by Federal Reserve Bank: Harry J. Volk President, Union Bank, Los Angeles, Calif. 1968 Carl E. Schroeder President, The First National Bank of Orange County, Orange, Calif. 1968 Sherman Hazeltine Chairman of the Board, Chief Executive Officer, First National Bank of Arizona, Phoenix, Ariz. 1969 T. H. Shearin President, Community National Bank, Bakersfield, Calif. 1970 Appointed by Board of Governors: J. L. Atwood 1 President, Chief Executive Officer, North American Rockwell Corporation, El Segundo, Calif. 1968 Arthur G. Coons President Emeritus, Occidental College, Newport Beach, Calif. 1969 Norman B. Houston Senior Vice President, Treasurer, Golden State Mutual Life In­ surance Company, Los Angeles, Calif. 1970 PORTLAND BRANCH Appointed by Federal Reserve Bank: E. W. Firstenburg Chairman of the Board, President, First Independent Bank, Vancouver, Wash. 1968 Charles F. Adams President, The Oregon Bank, Portland, Ore. 1968 Ralph J. Voss President, First National Bank, Portland, Ore. 1969 1 Chairman 3 Deputy Chairman Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued PORTLAND BRANCH—Continued Term Expires Appointed by Board of Governors: Dec. 31 Robert F. Dwyer1 Lumberman, Portland, Ore. 1968 Frank Anderson Rancher, Heppner, Ore. 1969 SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank: Alan B. Blood Executive Vice President, Barnes Banking Company, Kaysville, Utah 1968 Newell B. Dayton Chairman of the Board, Tracy-Collins Bank and Trust Com­ pany, Salt Lake City, Utah 1968 William E. Irvin President, The Idaho First National Bank, Boise, Idaho 1969 Appointed by Board of Governors: Peter E. Marble 1 Rancher, Deeth, Nev. 1968 Royden G. Derrick President, General Manager, Western Steel Company, Salt Lake City, Utah 1969 SEATTLE BRANCH Appointed by Federal Reserve Bank: A. E. Saunders President, The Puget Sound National Bank, Tacoma, Wash. 1968 Philip H. Stanton President, Washington Trust Bank, Spokane, Wash. 1968 Maxwell Carlson President, The National Bank of Commerce, Seattle, Wash. 1969 Appointed by Board of Governors: Robert D. O’Brien1 Chairman of the Board, Chief Executive Officer, Renton, Wash. 1968 William McGregor Vice President, McGregor Land and Livestock Company, Hooper, Wash. 1969 1 Chairman 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 October 3 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; December, pages 2035-42; and January 1968, pages 72­ 78. The record for the meetings held on October 24, and Novem­ ber 14, 1967, follow: 151 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 MEETING HELD ON OCTOBER 24, 1967 Authority to effect transactions in System Account. Underlying economic conditions continued strong despite recent weakness in some key measures of activity resulting from strikes in the automobile and other industries. In the third quarter, according to preliminary Commerce Department figures, real GNP rose substantially and average prices—as measured by the GNP “deflator”—increased more rapidly than they had earlier in the year. It appeared likely that the rate of growth in real output would step up in the fourth quarter if major work stop­ pages were limited in duration and extent and that inflationary pressures would continue. Expectations had diminished that a surcharge on Federal income taxes, as recommended by the President, would be enacted before the year-end. Both nonfarm employment and industrial production declined in September, largely as a result of strikes. The unemployment rate rose to 4.1 per cent from 3.8 per cent in August, mainly because of an unusually large increase in the number of women in the labor force. However, continued tightness in over-all labor market conditions was indicated by other evidence, includ­ ing a decline in the unemployment rate for adult men to an ex­ tremely low level and a rise in the index of help-wanted adver­ tising. Against the background of tight labor markets and recent rapid increases in consumer prices, it appeared likely that settle­ ments in current wage negotiations would be of a nature to main­ tain upward pressures on costs. In the fourth quarter business inventories were expected to increase modestly—as they had in the third quarter—and further advances were anticipated in most major categories of final de­ mand. Growth in consumer expenditures had been smaller than expected in the third quarter; estimates of retail sales for July and August, particularly at nondurable goods stores, had been Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 153 revised downward sharply, and the advance estimate for Septem­ ber showed little improvement. However, it appeared likely that consumer spending would increase considerably in the fourth quarter, when the rate of growth in disposable income was ex­ pected to rise further unless retarded by extended major strikes or restrained by enactment of a tax increase. Further advances also seemed to be in prospect for residential construction, which had risen substantially in the third quarter, and for business fixed investment, which had turned up after declining moderately in the first half of the year. Growth in defense spending had slowed markedly after midyear, but a sharp rise in total Federal outlays was anticipated in the final quarter largely because of expected increases in civilian and military pay. With respect to the U.S. balance of payments, substantial def­ icits had been recorded in each of the first three quarters of 1967 on the “liquidity” basis of calculation, and another such deficit appeared likely in the fourth quarter. The balance on the “official reserve transactions” basis had swung widely in recent quarters as a result of wide fluctuations in liabilities of U.S. banks to their foreign branches, but for the first three quarters of 1967 as a whole there had been a sizable deficit on this basis also. Sterling continued under pressure in foreign exchange markets, and on October 19 the Bank of England raised its discount rate from 5'/2 to 6 per cent. On October 3 the Treasury auctioned $1.5 billion of tax-antici­ pation bills maturing in April and $3.0 billion maturing in June at average issuing rates of 4.93 and 5.11 per cent, respectively. Commercial banks initially absorbed almost all of the new issues, which carried 75 per cent tax-and-loan-account privileges. Bids for the June tax bills exceeded the amount offered by an un­ usually small margin. An announcement was anticipated on the day following this meeting of the terms on which the Treasury would refund securities maturing in mid-November, of which Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 $2.6 billion were held by the public. The Treasury was expected to raise some new cash in connection with that refunding. System open market operations since the preceding meeting of the Committee had continued to be directed at maintaining steady conditions in the money market. Free reserves of member banks fluctuated widely in the 3 weeks ending October 18, but their average of about $265 million was little changed from that of the preceding 3 weeks. Both excess reserves and borrowings of member banks increased; borrowings averaged about $170 million, compared with $85 million in the preceding period. Rates on Federal funds and on bank loans to Government securities dealers rose somewhat in the first half of October, but after that they moved down again. Interest rates on most short-term market instruments had ad­ vanced further since the preceding meeting of the Committee. The market rate on 3-month Treasury bills, at 4.58 per cent on the day before this meeting, was 18 basis points higher than 3 weeks earlier. In part this increase reflected the shift in the maturity dates of 3-month bills to January from the December dates that are attractive to many investors. It also reflected the increased bill supplies resulting from the Treasury’s tax-antici­ pation bill offering in early October and the continued $100 million additions to the weekly bill offerings. Bond yields had risen significantly further in recent weeks; yields on municipal bonds had advanced to their highest levels since the early 193O’s, and those on corporate and long-term Treasury bonds to levels not reached since the early 1920’s. These developments reflected diminishing confidence in financial markets that a tax increase would be enacted and a related heightening of expectations that monetary policy would become firmer. In this atmosphere investors were becoming more reluc­ tant to acquire long-term securities and borrowers were increas­ ingly tending to anticipate later needs. The volume of new cor­ porate securities offered publicly in October was now expected Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 155 to be considerably larger than the reduced offerings of Septem­ ber, and the November calendar was growing rapidly. Flotations of municipal securities were expected to decline in October— partly because a number of issues had been postponed or reduced in size—but it appeared likely that the volume of such issues would increase again in November. Interest rates on conventional mortgages on new homes re­ mained at their advanced August level in September, and sec­ ondary-market yields on Federally underwritten mortgages rose for the fifth consecutive month. Although inflows of funds to nonbank depositary institutions continued large, in the third quarter as a whole they were below the record volume of the second quarter, after allowance for seasonal influences. At commercial banks, loans on securities and loans to non­ bank financial institutions increased markedly in September and apparently also in early October. Growth in business loans ap­ peared to have stepped up somewhat in recent weeks from its earlier slow pace, but to a large extent the increased demands for such loans probably reflected needs to finance payments to the Treasury of corporate income taxes in September and of withheld taxes in early October. As to total bank credit, estimates of recent and current growth rates had been revised upward somewhat since the preceding meeting of the Committee. The bank credit proxy—daily-average member bank deposits—now was estimated to have risen at about a 1016 per cent annual rate from August to September and was projected to rise at a rate in the range of 12 to 15 per cent from September to October. The money supply, which earlier had been expected to grow relatively little in October, was now projected to rise in that month at an annual rate in the 7 to 9 per cent range. Growth in both the bank credit proxy and the money supply was expected to moderate somewhat in November—to annual rates in the ranges of 7 to 10 per cent and 4 to 6 per cent, re­ spectively—if money market conditions were unchanged. Al- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 though the outlook for business loan demands was particularly uncertain at present, on balance such demands appeared likely to remain moderate in both November and December. The Committee decided that the forthcoming Treasury financ­ ing precluded any change in monetary policy at this time. Some members favored no policy change on other grounds also, includ­ ing the continuing uncertainties regarding the probable outcome of the current congressional debate on fiscal policy measures. Also cited in this connection was the judgment that a considerable degree of restraint was already being imposed on potential bor­ rowing and spending by the high levels to which long-term inter­ est rates had risen. In addition, it was noted that further increases in market interest rates at this time might well have undesired effects on flows of funds to financial intermediaries and on the position of sterling in foreign exchange markets. Other members indicated that in the absence of Treasury financing activity they would have been inclined to advocate some firming of monetary policy in an effort to slow the rapid growth of bank credit and the money supply. In their judgment, current and prospective inflationary pressures and the continued large deficits in the balance of payments argued strongly for such a course. At the conclusion of the discussion 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 indicate that, apart from the effects of strikes in the automobile and other industries, underlying economic conditions continue strong and prospects favor more rapid growth in the months ahead. 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. The volume of new security issues is expanding again and interest rates Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 157 have risen further, reflecting in part increased uncertainties in financial markets concerning enactment of the President’s fiscal program. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions, including bank credit growth, conducive to sustainable economic expansion, recognizing the need for reasonable price stability for both domestic and balance of payments purposes. To implement this policy, while taking account of forthcoming Treasury financing activity, 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 modi­ fied, 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. Martin, Brimmer, Maisel, Mitchell, Robertson, Scanlon, Sherrill, Swan, Wayne, and Treiber. Vote against this action: Mr. Francis. Mr. Francis dissented from this action because he favored seeking whatever degree of firming in money market conditions would be required to moderate substantially the growth in bank credit and the money supply by the end of the year. He agreed that Treasury financing operations would have to be taken into account to some extent in implementing such a policy. Neverthe­ less, he thought that the national interest called for greater monetary restraint now to curb inflationary pressures and to protect the foreign trade component of the U.S. balance of pay­ ments. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 MEETING HELD ON NOVEMBER 14, 1967 1. Authority to effect transactions in System Account. Although strikes recently had been retarding activity in some areas of the economy, real GNP was expected to increase more rapidly in the current quarter than it had in the third quarter. A still higher rate of economic growth and continued upward pressures on prices and costs appeared to be in prospect for early 1968, particularly if an income tax surcharge as proposed by the President were not enacted. Recent weakness in various broad measures of business activ­ ity was largely a consequence, directly or indirectly, of work stoppages in the automobile industry and in some other indus­ tries. Industrial production was estimated to have declined slightly further in October. Retail sales decreased appreciably, according to the advance estimate, mainly because of a sharp reduction in automobile sales attributable to the limited avail­ ability of new cars. Total nonfarm employment rose relatively little; the net increase in manufacturing employment was held down by strikes, and Federal Government employment declined slightly because of a curb on hiring. With the labor force in­ creasing more rapidly than usual, the unemployment rate rose further, to 4.3 per cent from 4.1 per cent in September. Resi­ dential construction activity, however, continued to rise strongly in October. It appeared likely that final sales to both the private and Gov­ ernment sectors of the economy would increase more rapidly in the fourth quarter than in the third, but that the rate of business inventory accumulation would remain low. Growth in output, employment, and incomes was expected to be quickened in the early months of 1968 by business efforts to rebuild inventories depleted by strikes and by efforts of steel users to accumulate stocks as a hedge against a possible steel strike in the summer. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 159 Moreover, it appeared that consumer spending would be stim­ ulated in early 1968 by liberalization of social security benefits and by a Federal employee pay raise, as well as by continued sizable advances in industrial wage rates—including increases resulting from the rise in minimum wage rates on February 1, 1968, as provided by existing legislation. Wholesale prices of industrial commodities increased further from mid-September to mid-October, according to preliminary estimates, but prices of farm products and foods declined, and the total wholesale price index edged down. The consumer price index rose somewhat less in September than it had in other re­ cent months as food prices declined. Further information confirmed earlier estimates that the deficit in the U.S. balance of payments on the “liquidity” basis of cal­ culation was at a rate somewhat higher in the third quarter than in the first half of the year, and another large deficit ap­ peared to be in prospect for the fourth quarter. The merchandise trade surplus declined in September from the high August rate, as imports increased while exports fell; in the third quarter as a whole the trade surplus was about the same as in the second quarter. On the “official reserve transactions” basis, a sizable surplus was recorded in the third quarter following substantial deficits in the first half of the year. This surplus was due primarily to large inflows of liquid funds to U.S. banks through their for­ eign branches. Net inflows of such funds continued after the end of September. Sterling was under heavy pressure in foreign ex­ change markets and on November 9, for the second time in 3 weeks, the Bank of England raised its discount rate by 16 of a percentage point, to 616 per cent. In its November financing—for which subscription books were open October 30—the Treasury refunded securities maturing November 15, including $2.6 billion held by the public, and raised $2.2 billion of new money. Two issues were offered—a 15-month, 5?4 per cent note, and a 7-year, 5% per cent note— Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 of which private investors were allotted $3.2 billion and $1.6 billion, respectively. While the two notes were well-received ini­ tially—with the longer maturity, in particular, heavily oversub­ scribed—selling pressures developed soon after the books had closed and on the day before this meeting prices of both were quoted at discounts. It was announced on November 10 that $650 million of participation certificates of the Federal National Mortgage Association would be offered to the public on Novem­ ber 28. Apart from the continuing addition of $100 million to each weekly and monthly bill auction, this was expected to be the Government’s last new cash financing in the calendar year 1967. Open market operations since the preceding meeting of the Committee had continued to be directed at maintaining steady conditions in the money market. Net free reserves of member banks averaged about $200 million during the 3 weeks ending November 8, compared with a revised figure of about $240 million for the preceding 3 weeks. Excess reserves of member banks declined, particularly at country banks; borrowings also declined, to an average of $90 million from about $170 million in the preceding period. Average rates on Federal funds and on bank loans to Government securities dealers were a little lower than in September and the early weeks of October. Interest rates on short-term market instruments remained generally un­ changed or rose slightly from their levels at the time of the pre­ ceding meeting of the Committee. The market rate on 3-month Treasury bills was 4.62 per cent on the day before this meeting, up 4 basis points from its level 3 weeks earlier. After a brief interruption in late October, bond yields re­ sumed their advance in all sectors of the capital market. Yields on long-term Government bonds at the time of this meeting were significantly above both the levels prevailing 3 weeks earlier and the highs reached in 1966, and those on intermediate-term Gov­ ernment issues were up sharply. Yields on new corporate and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 161 municipal issues also advanced, the former to levels exceeding the previous peaks reached in mid-October. The renewal of up­ ward pressures on bond yields reflected in part a heavy pros­ pective volume of new offerings of corporate and municipal se­ curities in November and anticipations of the large FNMA of­ fering. Also contributing to the pressures were prospects of inflationary developments and growing expectations in financial markets that a tax increase would not be enacted this year and that monetary policy would become firmer. On the day before this meeting, a major corporate bond offering was postponed as a result of congestion and uncertainties in the capital market. The incomplete data available suggested that secondary-market yields on Federally underwritten mortgages rose further in Oc­ tober—approaching the record level reached toward the end of 1966. It appeared that net inflows of funds to nonbank depositary institutions continued to moderate in October on a seasonally adjusted basis. By the end of September outstanding mortgage commitments of private lenders were virtually back to the post­ war high of January 1966, but in recent weeks some individual lenders were reported to have reduced their new commitments. Commercial bank holdings of Treasury and other securities rose considerably in October. Security loans and loans to non­ bank financial institutions also increased relatively fast, but the advance in business loans was again quite moderate. The bank credit proxy—daily-average member bank deposits—increased at an annual rate of 12 per cent, a little faster than in the pre­ ceding month. Time and savings deposits expanded at an annual rate of 13 per cent in October, slightly above the September rate but well below the average rate of more than 17 per cent for the first 8 months of the year. The money supply, which had been virtually unchanged in September, increased at an annual rate of about 6.5 per cent in October. The rate of expansion in bank credit was expected to slow in the last 2 months of the year if prevailing money market con- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 ditions were maintained. It appeared likely that demands for business loans would remain moderate in view of prospects that changes in business spending on inventories and fixed capital would be small. The bank credit proxy was still projected to rise at an annual rate in the 7 to 10 per cent range in November, and a somewhat lower growth rate was anticipated for December. In November the money supply was expected to increase at an annual rate in the range of 6 to 8 per cent and time and savings deposits in the range of 9 to 11 per cent. At this meeting the Committee heard reports on negotiations relating to international credit assistance to the United Kingdom in addition to reviewing conditions and prospects with respect to the domestic economy, the U.S. balance of payments, and the foreign exchange markets. After discussion the Committee agreed that no change should be made in monetary policy at this time, in view of the sensitive state of conditions in foreign exchange markets and of the international negotiations now under way. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that, while the di­ rect and indirect effects of strikes have been retarding activity in some areas of the economy, prospects still favor more rapid economic growth in the months ahead. Although prices of farm products and foods have declined recently, upward pressures persist on industrial prices and costs. While there recently have been further 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. The volume of new private security issues has ex­ panded further and interest rates remain under upward pressure, reflecting in part increased doubts in financial markets concerning enactment of the President’s fiscal program. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions, including bank credit growth, conducive to sustainable economic expansion, recognizing the need for reasonable price stability for both domestic and balance of payments purposes. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 163 To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to main­ taining about the prevailing conditions in the money market, but opera­ tions shall be modified as necessary to moderate any apparent tendency for bank credit to expand significantly more than currently expected. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daanc, Francis, Maisel, Mitchell, Robert­ son, Scanlon, Sherrill, Swan, and Wayne. Votes against this action: None. 2. Amendment to authorization for System foreign currency operations. The Committee amended paragraphs 1B(3) and 1C(1) of the authorization for System foreign currency operations, in each case effective as of the date of a determination by Chairman Martin that such action was in accordance with the position of the United States in the current international negotiations con­ cerning credit assistance to the United Kingdom. In the amend­ ment to paragraph 1B(3) the limit on authorized System Ac­ count holdings of sterling purchased on a covered or guaranteed basis was increased from $200 million to $300 million equiva­ lent. In the amendment to paragraph 1C(1) the limit on out­ standing forward commitments to deliver foreign currencies to the Stabilization Fund was increased from $200 million to $350 million equivalent, and language restricting the foreign cur­ rencies covered by the paragraph to currencies “in which the U.S. Treasury has outstanding indebtedness” was deleted. Chairman Martin made the indicated determination on No­ vember 21, 1967, for the amendment to paragraph IB(3) and on November 22, 1967, for the amendment to paragraph 1C(1). Accordingly, the respective amendments became effective on those dates. With these two amendments, the first paragraph of the authorization read as follows: The Federal Open Market Committee authorizes and directs the Fed­ eral Reserve Bank of New York, for System Open Market Account, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 to the extent necessary to carry out the Committee’s foreign currency directive: A. To purchase and sell the following foreign currencies in the form of cable transfers through spot or forward transactions on the open mar­ ket at home and abroad, including transactions with the U.S. Stabilization Fund established by Section 10 of the Gold Reserve Act of 1934, with foreign monetary authorities, and with the Bank for International Settle­ ments: Austrian schillings Belgian francs Canadian dollars Danish kroner Pounds sterling French francs German marks Italian lire Japanese yen Mexican pesos Netherlands guilders Norwegian kroner Swedish kronor Swiss francs B. To hold foreign currencies listed in paragraph A above, up to the following limits: (1) Currencies held spot or purchased forward, up to the amounts necessary to fulfill outstanding forward commitments; (2) Additional currencies held spot or purchased forward, up to the amount necessary for System operations to exert a market influence but not exceeding $150 million equivalent; and (3) Sterling purchased on a covered or guaranteed basis in terms of the dollar, under agreement with the Bank of England, up to $300 million equivalent. C. To have outstanding forward commitments undertaken under par­ agraph A above to deliver foreign currencies, up to the following limits: (1) Commitments to deliver foreign currencies to the Stabilization Fund, up to $350 million equivalent; (2) Commitments to deliver Italian lire, under special arrangements with the Bank of Italy, up to $500 million equivalent; and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 165 (3) Other forward commitments to deliver foreign currencies, up to $275 million equivalent. D. To draw foreign currencies and to permit foreign banks to draw dollars under the reciprocal currency arrangements listed in paragraph 2 below, provided that drawings by either party to any such arrangement shall be fully liquidated within 12 months after any amount outstanding at that time was first drawn, unless the Committee, because of exceptional circumstances, specifically authorizes a delay. Votes for this action: Messsr. Martin, Hayes, Brimmer, Daane, Francis, Maisel, Mitchell, Robert­ son, Scanlon, Sherrill, Swan, and Wayne. Votes against this action: None. In his report on the negotiations now in process concerning international credit assistance to the United Kingdom, the Special Manager for foreign currency operations noted that one possible form of U.S. participation in such assistance was an undertaking by U.S. monetary authorities to acquire additional sterling. The previous authority to acquire sterling, including the authorization to acquire up to $200 million for System Account, had proved useful at times in the past in market operations undertaken by the Special Manager for purposes specified in the Committee’s foreign currency directive. The Special Manager indicated that in his judgment an increase of $100 million in the limit on such holdings by the System was justified in light of possible future needs for similar market operations. Accordingly, he recom­ mended that if in the current negotiations the United States were to undertake to acquire additional sterling, $100 million should be acquired for System account and the remainder for Stabiliza­ tion Fund account. The Special Manager also indicated that if the arrangements were concluded on the basis he had suggested the resources of the Stabilization Fund might be inadequate to meet all demands upon them from time to time in the future. Accordingly, he rec­ ommended the amendments to paragraph 1C(1) of the authori- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 zation described above to enable the System Account to “ware­ house” part of the Treasury’s holdings of sterling if that should prove desirable. Past operations undertaken under the terms of paragraph 1C(1) had been limited to the purpose of facilitating repayment by the Treasury of maturing bonded debt denom­ inated in foreign currencies. After discussion, the Committee concurred in the recommen­ dations of the Special Manager and took the actions indicated. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material INTEREST ON CERTAIN FOREIGN DEPOSITS The Board of Governors, effective January 18, 1968, amended Regulation Q—Payment of Interest on Deposits—to exempt time deposits of foreign governments, monetary and financial authori­ ties of foreign governments when acting as such, or international financial institutions of which the United States is a member, from the limitations contained in the regulation as to the rate of interest that may be paid on time deposits. The text of the amendment reads as follows: AMENDMENT TO REGULATION Q Effective January 18, 1968, section 217.3(a) is amended to read as follows: SECTION 217.3—MAXIMUM RATE OF INTEREST ON TIME AND SAVINGS DEPOSITS (a) Maximum rate prescribed from time to time.—Except in accordance with the provision of this Part, no member bank shall pay interest on any time deposit or savings deposit in any manner, directly or indirectly, or by any method, practice, or device whatsoever. No member bank shall pay interest on any time deposit or savings deposit at a rate in excess of such appli­ cable maximum rate as the Board of Governors of the Federal Reserve System shall prescribe from time to time; and any rate or rates which may be so prescribed by the Board will be set forth in Supplements to this Part, which will be issued in advance of the date upon which such rate or rates become effective. Under explicit provisions of the Federal Reserve Act, until October 15, 1968, the provisions of this paragraph do not apply to the rate of interest that may be paid by member banks on time deposits of foreign governments, monetary and financial authorities of foreign governments when acting as such, or international financial institutions of which the United States is a member. The provisions of this paragraph shall likewise not apply to the rate of interest that may be paid by a member bank after October 15, 1968, on such a deposit which is received, renewed, or extended, in the ordinary course of business and for a specified period not exceeding two years, prior to the expira­ tion of the authority conferred upon the Board by the amend­ ments to section 19(j) of the Federal Reserve Act enacted September 21, 1966. 167 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 CREDIT IN STOCK MARKET TRANSACTIONS The Board of Governors, effective March 11, 1968, adopted a number of regulatory changes for the purpose of broadening the coverage of and tightening its control over the use of credit in stock market transactions. This was accomplished by amend­ ing Regulation T—Credit by Brokers, Dealers and Members of National Securities Exchanges, and Regulation U—Credit by Banks for the Purpose of Purchasing or Carrying Registered Stocks, and issuing a new Regulation G—Credit by Persons Other than Banks, Brokers, or Dealers for the Purpose of Pur­ chasing or Carrying Registered Equity Securities. The changes were adopted pursuant to the statutory mandate contained in section 7 of the Securities Exchange Act of 1934, directing the Board to regulate credit extended by brokers and dealers for the purpose of preventing the excessive flow of credit into the securities markets, and to control the extension of se­ curities credit by others in circumvention of this regulation. The proposed changes were released to the public on October 20, 1967, and were published for comment in the Federal Register. Nu­ merous comments were received, and the changes were adopted by the Board after consideration of all relevant material that was presented by interested persons. In addition to bringing lenders other than banks, brokers and dealers within the ambit of margin regulation, through adoption of the new Regulation G, the changes relate in the main to three areas: (1) a new margin requirement is imposed on loans made by banks for the purpose of purchasing or carrying debt securities that are convertible into registered stocks. This re­ quirement is set initially at 50 per cent. Brokers and dealers are permitted to lend on a similar basis for the purpose of pur­ chasing or carrying registered convertible debt securities. (2) Subscription account loans, which have long been permitted on a 25 per cent initial margin, will have to be brought into a fully margined status within a year after the loans are made. (3) Non-convertible bonds and exempted (e.g. Government) securi­ ties will have to be segregated in a separate account, to close an existing avenue for evasion of the retention and withdrawal requirements of the regulations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 169 REGULATION T (12 CFR 220) As Amended effective March 11, 1968 CREDIT BY BROKERS, DEALERS, AND MEMBERS OF NATIONAL SECURITIES EXCHANGES * SECTION 220.1—SCOPE OF PART This part is issued by the Board of Governors of the Federal Reserve System (hereinafter called the “Board”) pursuant to the Securities Exchange Act of 1934 (called the “Act” in this P**art), particularly sections 7 and 8(a) thereof (15 U.S.C. 78g, 78h(a)), and applies to every member of a national securities exchange and to every broker or dealer who transacts a business in securities through the medium of any such member. SECTION 220.2—DEFINITIONS For the purposes of this part, unless the context otherwise requires: (a) The terms “person”, “member”, “broker”, “dealer”, “buy”, “purchase”, “sale”, “sell”, “security”, “equity security”, and “bank” have the meanings given them in section (3a) of the Act (15 U.S.C. 78c(a)). (b) The term “creditor” means any member of a national securities exchange or any broker or dealer who transacts a business in securities through the medium of any such member. (c) The term “customer” includes any person, or any group of persons acting .jointly, (1) to or for whom a creditor is extending or maintaining any credit, or (2) who, in accordance with the ordinary usage of the trade, would be considered a customer of the creditor. It includes, in case the creditor is a firm, any partner in the firm who would be considered a customer of the firm if he were not a partner, and includes any joint adventure in which a creditor participates and which would be considered a customer of the creditor if the creditor were not a participant. (d) The term “registered security” means any security which (1) is registered on a national securities exchange; or (2) in * This text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 220, cited as 12 CFR 220. The words “this Part,” as used herein, mean Regulation T. ** See Appendix. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN n FEBRUARY 1968 consequence of its having unlisted trading privileges on a na­ tional securities exchange is deemed, under the provisions of section 12(f) of the Act (15 U.S.C. 78Z), to be registered on a national securities exchange; or (3) is exempted by the Securi­ ties and Exchange Commission from the operation of section 7(c) (2) of the Act (15 U.S.C. 78g(c) (2)) only to the extent necessary to render lawful any direct or indirect extension or maintenance of credit on such security or any direct or indirect arrangement therefor which would not have been unlawful if such security had been a security (other than an exempted security) registered on a national securities exchange. (e) The term “exempted security” has the meaning given it in section 3(a) of the Act (12 U.S.C. 78c (a) (12)), except that the term does not include a security which is exempted by the Securi­ ties and Exchange Commission from the operation of section 7(c) (2) of the Act (12 U.S.C. 78g(c) (2)) only to the extent described in paragraph (d) (3) of this section. (f) The term “non-equity security” means any security other than an equity security or an exempted security. SECTION 220.3—GENERAL ACCOUNTS (a) Contents of general account—All financial relations be­ tween a creditor and a customer, whether recorded in one record or in more than one record, shall be included in and be deemed to be parts of the customer’s general account with the creditor, except that the relations which § 220.4 permits to be included in any special account provided for by that section may be in­ cluded in the appropriate special account, and all transactions in commodities, and, except to the extent provided in para­ graph (b) (2) of § 220.3, all transactions in non-equity securi­ ties, exempted securities, and in other securities having no loan value in a general account under the provisions of § 220.3(c) and § 220.8 (the Supplement to Regulation T) (except unissued securities, short sales, and purchases to cover short sales and contracts involving an endorsement or guarantee of any put, call, or other option), shall be included in the appropriate special account provided for by § 220.4. During any period when such § 220.8 specifies that registered equity securities shall have no loan value in a general account, any transaction consisting of a purchase of a security other than a purchase of a security to reduce or close out a short position shall be effected in the special cash account provided for by § 220.4(c) or in some other appro­ priate special account provided for by § 220.4. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 171 (b) General rule—(1) A creditor shall not effect for or with any customer in a general account, special bond account sub­ ject to § 220.4(f) or special convertible security account subject to § 220.4 (j) any transaction which, in combination with the other transactions effected in such account on the same day, creates an excess of the adjusted debit balance of such account over the maximum loan value of the securities in such account, or increases any such excess, unless in connection therewith the creditor obtains, as promptly as possible and in any event before the expiration of five full business days following the date of such transaction, the deposit into such account of cash or securi­ ties in such amount that the cash deposited plus the maximum loan value of the securities deposited equals or exceeds the excess so created or the increase so caused. (2) Except as permitted in this subparagraph, no withdrawal of cash or registered or exempted securities shall be permissible if the adjusted debit balance of the account (whether the gen­ eral account, the special bond account subject to § 220.4(7) or the special convertible security account subject to § 220.4 (/)) would exeed the maximum loan value of the securities in such account after such withdrawal. The exceptions are available only in the event no cash or securities need to be deposited in such account in connection with a transaction on a previous day and none would need to be deposited thereafter in connec­ tion with any withdrawal of cash or securities on the current day. The permissible exceptions are (i) registered non-equity or exempted securities held in the general account on March 11, 1968, and continuously thereafter may be withdrawn upon the deposit in the account of cash (or registered equity securi­ ties counted at their maximum loan value) at least equal to the “retention requirement” of such withdrawn securities, or (ii) except as provided in (i) of this subparagraph, securities hav­ ing loan value in the general account, the special bond account subject to § 220.4(7), or the special convertible security account subject to § 220.4 (.7) may be withdrawn upon the deposit in such account of cash or securities having loan value in such account counted at the maximum loan value at least equal to the “reten­ tion requirement” of those securities, or (iii) cash may be with­ drawn upon the deposit in the general account, the special bond account subject to § 220.4(7), or the special convertible security account subject to § 220.4 (?) of securities having a maximum loan value in such account at least equal to the amount of cash Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

172 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 withdrawn, or (iv) upon the sale (other than the short sale) of securities having loan value in the general account, special bond account subject to § 220.4(7) or special convertible security account subject to § 220.4(7) there may be withdrawn in cash an amount equal to the difference between the current market value of the securities sold and the “retention requirement” of such securities, or (v) upon the sale (other than the short sale) of a registered non-equity security or an exempted security that was held in the general account on March 11, 1968 and continu­ ously thereafter there may be withdrawn in cash an amount equal to the difference between the current market value of the securities sold and the “retention requirement” of those securities as prescribed in § 220.8 (the Supplement to Regulation T). (3) Rules for computing the maximum loan value of the securities in a general account,- special bond account subject to § 220.4(0 or special convertible security account subject to § 220.4(7) and the adjusted debit balance of such account are provided in paragraphs (c) and (d) of this section, and certain modifications of and exceptions to the general rule stated in this paragraph are provided in (he subsequent paragraphs of this section and in § 220.6. (c) Maximum loan value anil current market value.— (1) The maximum loan value of the securities in a general account, spe­ cial bond account subject to § 220.4(7), or special convertible security account subject to § 220.4(7) is the sum of the maxi­ mum loan values of the individual securities in such account, including securities (other than unissued securities) bought for such account but not yet debited thereto, but excluding securi­ ties sold for such account whether or, not payment has been credited thereto. (2) Except as otherwise provided in this paragraph, the maximum loan value of a security in a general account, special bond account subject to §220.4 (7),or special convertible security account subject to § 220.4(7) shall be such maximum loan value as the Board shall prescribe from time to time in § 220.8 (the Supplement to Regulation T). No collateral other than an ex­ empted security or a registered non-equity security held in such account on March 11, 1968 and continuously thereafter, or registered equity security shall have any loan value in a general account except that a registered equity security eligible for a special convertible bond account pursuant to § 220.4(7) shall Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 173 have loan value in a general account only if held in the account on March 11, 1968 and continuously thereafter. (3) A warrant or certificate which evidences only a right to subscribe to or otherwise acquire any security and which expires within ninety days of issuance shall have no loan value in a general account, special bond account subject to § 220.4(7), or special convertible security account subject to § 220.4 (j) ; but, if the account contains the security to the holder of which such warrant or certificate has been issued and such warrant or cer­ tificate is held in an appropriate account maintained by the creditor for the customer the current market value of such security (if such security is a registered security) shall, for the purpose of calculating its maximum loan value, be increased by the current market value of such warrant or certificate. (4) For the current market value of a security throughout the day of its purchase or sale, the creditor shall use its total cost or the net proceeds of its sale, as the case may be, and at any other time shall use the closing sale price of the security on the preceding business day as shown by any regularly published reporting or quotation service. In the absence of any such closing sale price, the creditor may use any reasonable estimate of the market value of such security as of the close of business on such preceding business day. (d) Adjusted debit balance—For the purpose of this Part, the adjusted debit balance of a general account, special bond account subject to § 220.4 (i) or special convertible security account subject to § 220.4 (y) shall be calculated by taking the sum of the following items: (1) the net debit balance, if any, of such account; (2) the total cost of any securities (other than unissued securities) bought for such account but not yet debited thereto; (3) the current market value of any securities (other than unissued securities) sold short in such account plus, for each such security (other than an exempted security), such amount as the Board shall prescribe from time to time in § 220.8 (the Supplement to Regulation T) as the margin required for such short sales, except that such amount so prescribed in such § 220.8 need not be included when there are held in such account securities exchangeable or convertible within 90 calen­ dar days, without restriction other than the payment of money, into such securities sold short; (4) the amount of margin specified by paragraph (/i) of this section for every net commitment in such account in un- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 issued securities, plus all unrealized losses on each commitment in unissued securities and minus all unrealized gains (not exceeding the required margin) on each commitment in un­ issued securities; and (5) the amount of any margin customarily required by the creditor in connection with his endorsement or guarantee of any put, call or other option; and deducting therefrom the sum of the following items: (6) the net credit balance, if any, of such account; and (7) the net proceeds of sale of any securities (other than unissued securities) sold for such account but for which pay­ ment has not yet been credited thereto. In case such account is the account of a partner of the creditor or the account of a joint adventure in which the creditor partici­ pates, the adjusted debit balance shall be computed according to the foregoing rule and the supplementary rules prescribed in § 220.6 («) and. (6). -(c) Liquidation in lieu of d*eposit. —In any case in which the deposit required by paragraph (5) of this section, or any portion thereof, is not obtained by the creditor within the five-day period specified therein, registered nonexempted securities shall be sold (or, to the extent that there are insufficient registered non­ exempted securities in the general account, special bond account subject to § 220.4(z), or special convertible security account subject to § 220.4(/) other liquidating transactions shall be effected in such account), prior to the expiration of such fiveday period, in such amount that the resulting decrease in the adjusted debit balance of such account exceeds, by an amount at least as great as such required deposit or the undeposited portion thereof, the “retention requirement” of any registered or exempted securities sold: Provided, That a creditor is not required to sell securities or to effect other liquidating transac­ tions specified by this paragraph in an amount greater than necessary to eliminate the excess of the adjusted debit balance of such account over the maximum loan value of the securities remaining in such account after such liquidation. (f) Extensions of time—In exceptional cases, the five-day period specified in paragraph (b) of this section may, on appli- * This requirement relates to the action to be taken when a customer fails to make the deposit required by § 220.3 (6), and it is not intended to countenance on the part of customers the practice commonly known as “free-riding,” to prevent which the principal national securities exchanges have adopted certain rules. See the rules of such exchanges and § 220.7(e). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 175 cation of the creditor, be extended for one or more limited periods commensurate with the circumstances by any regularly constituted committee of a national securities exchange having jurisdiction over the business conduct of its members, of which exchange the creditor is a member or through which his transac­ tions are effected, provided such committee is satisfied that the creditor is acting in good faith in making the application and that the circumstances are in fact exceptional and warrant such action. (ff) Transactions on given day—For the purposes of paragraph (b) of this section, the question of whether or not an excess of the adjusted debit balance of a general account, special bond account subject to § 220.4(f), or special convertible bond account subject to § 220.4 (j) over the maximum loan value of the securi­ ties in such account is created or increased on a given day shall be determined on the basis of all the transactions in the account on such day exclusive of any deposit of cash, deposit of securities, covering transaction or other liquidation that has been effected on such day, pursuant to the requirement of paragraphs (b) or (e) of this section, in connection with a transaction on a previous day. In any case in which an excess so created, or in­ creased so caused, by transactions on a given day does not ex­ ceed $100, the creditor need not obtain the deposit specified therefor in subparagraph (b) (1) of this section. Any transac­ tion which serves to meet the requirements of paragraph (e) of this section or otherwise serves to permit any offsetting transaction in an account shall, to that extent, be unavailable to permit any other transaction in such account. For the purposes of this Part (Regulation T), if a security has maximum loan value under subparagraph (c)(1) of this section in a general account, special bond account subject to § 220.4(f), or special convertible security account subject to § 220.4 (,f) a sale of the same security (even though not the same certificate) in such account shall be deemed to be a long sale and shall not be deemed to be or treated as a short sale. (h) Unissued securities—(1) The amount to be included in the adjusted debit balance of a general account, special bond account subject to § 220.4(f), or special convertible security account subject to § 220.4 (j) as the margin required for a net long com­ mitment in unissued securities shall be the current market value of the net amount of unissued securities long minus the maxi­ mum loan value which such net amount of securities would have Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 if they were issued registered securities held in such account; and the amount to be so included as the margin required for a net short commitment in unissued securities shall be the amount which would be required as margin for the net amount of un­ issued securities short if such securities were issued securities and were sold short in such account: Provided, That no amount need be included as margin for a net short commitment in un­ issued securities when there are held in such account securities in respect of which the unissued securities are to be issued, nor for any net position in unissued securities that are exempted securities. (2) Whenever a creditor, pursuant to a purchase of an un­ issued security for a customer, receives an issued security which is not a registered or exempted security, the creditor shall treat any payment by him for such issued security as a transaction (other than a withdrawal which increases the adjusted debit balance of a general account, special bond account subject to § 220.4 (i), or special convertible security account subject to § 220.4(7) by the amount of the payment minus the amount re­ quired to be included in the adjusted debit balance of such account, at the time of and in connection with the purchase of the unissued security, as the margin required for such purchase. SECTION 220.4—SPECIAL ACCOUNTS (a) General rule—(1) Pursuant to this section, a creditor may establish for any customer one or more special accounts. (2) Each such special account shall be recorded separately and shall be confined to the transactions and relations specifically authorized for such account by the appropriate paragraph of this section and to transactions and relations incidental to those specifically authorized. An adequate record shall be maintained showing for each such account the full details of all transactions in the account. (3) A special account established pursuant to this sectio'n shall not be used in any way for the purpose of evading or circumventing any of the provisions of this Part. If a customer has with a creditor both a general account and one or more such special accounts, the creditor shall treat each such special account as if the customer had with the creditor no general ac­ count, special bond account subject to § 220.4 (?), or special con­ vertible security account subject to § 220.4 (j). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 177 (4) The only other conditions to which transactions in such special accounts shall be subject under the provisions of this Part shall be such conditions as are specified in the appropriate paragraph of this section and in §§ 220.2, 220.6, or 220.7. (b) Special omnibus account—In a special omnibus account, a member of a national securities exchange may effect and finance transactions for a broker or dealer from whom the member accepts in good faith a signed statement to the effect that he is subject to the provisions of this Part (or that he does not extend or maintain credit to or for customers except in accordance therewith as if he were subject thereto) and from whom the member receives (1) written notice, pursuant to a rule of the Securities and Exchange Commission concerning the hypothe­ cation of customers’ securities by brokers or dealers (Rule 8c-l (17 CFR § 240.8c-l) or Rule 15c2-l (17 CFR § 240.15c2-l)), to the effect that all securities carried in the account will be car­ ried for the account of the customers of the broker or dealer and (2) written notice that any short sales effect in the account will be short sales made in behalf of the customers of the broker or dealer other than his partners. (c) Special cash account—(1) In a special cash account, a creditor may effect for or with any customer bona fide cash transactions in securities in which the creditor may: (i) Purchase any security for, or sell any security to, any customer, provided funds sufficient for the purpose are already held in the account or the purchase or sale is in reliance upon an agreement accepted by the creditor in good faith that the customer will promptly make full cash payment for the security and that the customer does not contemplate selling the security prior to making such payment. (ii) Sell any security for, or purchase any security from, any customer, provided the security is held in the account or the creditor is informed that the customer or his principal owns the security and the purchase or sale is in reliance upon an agreement accepted by the creditor in good faith that the security is to be promptly deposited in the account. (2) In case a customer purchases a security (other than an exempted security) in the special cash account and does not make full cash payment for the security within 7 days after the date on which the security is so purchased, the creditor shall, except as provided in subparagraphs (3) — (7) of this paragraph, promptly cancel or otherwise liquidate the transaction or the unsettled portion thereof. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

178 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 (3) If the security when so purchased is an unissued security, the period applicable to the transaction under subparagraph (2) of this paragraph shall be 7 days after the date on which the security is made available by the issuer for delivery to pur­ chasers. If the security when so purchased is a “when distrib­ uted” security which is to be distributed in accordance with a published plan, the period applicable to the transaction under subparagraph (2) of this paragraph shall be 7 days after the date on which the security is so distributed. If the security when so purchased is a new security issued or to be issued for the purpose of refunding outstanding securities which mature, or are to be payable upon presentation for redemption, within 35 days of the date on which the new security is made available by the issuer for delivery to purchasers, the period applicable to the transaction under subparagraph (2) of this paragraph shall be 7 days after such maturity or payment date: Provided, That this sentence shall apply only to the payment of that portion of the purchase price that does not exceed 103 per cent of the amount that will be payable to the purchaser of the new security upon such maturity of, or payment for, securities owned by him at the time of the purchase. (4) If any shipment of securities is incidental to the consum­ mation of the transaction, the period applicable to the transac­ tion under subparagraph (2) of this paragraph shall be deemed to be extended by the number of days required for all such shipments, but not by more than 7 days. (5) If the creditor, acting in good faith in accordance with subparagraph (1) of this paragraph, purchases a security for a customer, or sells a security to a customer, with the under­ standing that he is to deliver the security promptly to the customer, and the full cash payment to be made promptly by the customer is to be made against such delivery, the creditor may at his option treat the transaction as one to which the period applicable under subparagraph (2) of this paragraph is not the 7 days therein specified but 35 days after the date of such purchase or sale. (6) If an appropriate committee of a national securities ex­ change or a national securities association is satisfied that the creditor is acting in good faith in making the application, that the application relates to a bona fide cash transaction, and that exceptional circumstances warrant such action, such committee, on application of the creditor, may (i) extend any period speci- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 179 fled in subparagraphs (2), (3), (4) or (5) of this paragraph for one or more limited periods commensurate with the circum­ stances, or (ii), in case a security purchased by the customer in the special cash account is a registered or exempted security, authorize transfer of the transaction to a general account, special bond account subject to § 220.4(0, special convertible security account subject to § 220.4(0, or special omnibus account and completion of the transaction pursuant to the provisions of this Part relating to such an account. (7) The 7-day periods specified in this paragraph refer to 7 full business days. The 35-day period and the 90-day period specified in this paragraph refer to calendar days, but if the last day of any such period is a Saturday, Sunday, or holiday, such period shall be considered to end on the next full business day. For the purposes of this paragraph, a creditor may, at his option, disregard any sum due by the customer not exceeding $100. (8) Unless funds sufficient for the purpose are already in the account, no security other than an exempted security shall be purchased for, or sold to, any customer in a special cash account with the creditor if any security other than an exempted secu­ rity has been purchased by such customer in such an account during the preceding 90 days, and then, for any reason whatever, without having been previously paid for in full by the customer, the security has been sold in the account or delivered out to any broker or dealer: Provided, That an appropriate committee of a national securities exchange or a national securities associa­ tion, on application of the creditor, may authorize the creditor to disregard for the purposes of this subparagraph any given instance of the type therein described if the committee is satis­ fied that both creditor and customer are acting in good faith and that circumstances warrant such authorization. For the purposes of this subparagraph, the cancellation of a transaction, otherwise than to correct an error, shall be deemed to constitute a sale. The creditor may disregard for the purposes of this subpara­ graph a sale without prior payment provided full cash payment is received within the period described by subparagraph (2) of this paragraph and the customer has not withdrawn the proceeds of sale on or before the day on which such payment (and also final payment of any check received in that connection) is received. The creditor may so disregard a delivery of a security to another broker or dealer provided such delivery was for Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 deposit into a special cash account which the latter broker or dealer maintains for the same customer and in which account there are already sufficient funds to pay for the security so purchased; and for the purpose of determining in that connection the status of a customer’s account at another broker or dealer, a creditor may rely upon a written statement which he accepts in good faith from such other broker or dealer. (d) Special arbitrage account.—In a special arbitrage account, a member of a national securities exchange may effect and finance for any customer bona fide arbitrage transactions in securities. For the purposes of this paragraph, the term “arbitrage” means (1) a purchase or sale of a security in one market together with an offsetting sale or purchase of the same security in a different market at as nearly the same time as practicable, for the purpose of taking advantage of a difference in prices in the two markets, or (2) a purchase of a security which is, without restriction other than the payment of money, exchange­ able or convertible within 90 calendar days following the date of its purchase into a second security together with an offsetting sale at or about the same time of such second security, for the purpose of taking advantage of a disparity in the prices of the two securities. (e) Special commodity account—In a special commodity ac­ count, a creditor may effect and carry for any customer trans­ actions in commodities. (f) Special miscellaneous account.—In a special miscellaneous account, a creditor may: (1) With the approval of any regularly constituted commit­ tee of a national securities exchange having jurisdiction over the business conduct of its members, extend and maintain credit to meet the emergency needs of any creditor; (2) (i) Extend and maintain credit, (a) to or for any part­ ner of a firm which is a member of a national securities exchange to enable such partner to make a contribution of capital to such firm, or to purchase stock in an affiliated corporation of such firm; or (b) to or for any person who is or will become the holder of stock of a corporation which is a member of a national securities exchange to enable such person to purchase stock in such corporation, or to purchase stock in an affiliated corpora­ tion of such corporation; provided the lender as well as the borrower is a partner in such member firm or a stockholder in such member corporation, or the lender is a firm or a stock­ holder in such member corporation, or the lender is a firm or Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 181 corporation which is a member of a national securities exchange and the borrower is a partner in such firm or a stockholder in such corporation; (ii) Extend and maintain subordinated credit to another creditor for capital purposes: Provided, That, (a) Either the lender or the borrower is a firm or corpo­ ration which is a member of a national securities exchange, the other party to the credit is an affiliated corporation of such member firm or corporation, and, in addition to the fact that an appropriate committee of the exchange is satisfied that the credit is not in contravention of any rule of the exchange, the credit has the approval of such committee, or (b) The lender as well as the borrower is a member of such exchange, the credit has the approval of an appropriate committee of the exchange, and the committee, in addition to being satisfied that the credit is not in contravention of any rule of the exchange, is satisfied that the credit is outside the ordinary course of the lender’s business, and that, if the bor­ rower’s firm or corporation or an affiliated corporation of such firm or corporation does any dealing in securities for its own account, the credit is not for the purpose of increasing the amount of such dealing. (iii) For the purpose of subdivisions (i) and (ii) of this subparagraph, the term “affiliated corporation” means a corpo­ ration all the common stock of which is owned directly or in­ directly by the member firm or general partners and employees of the firm, or by the member corporation or holders of voting stock and employees of the corporation and an appropriate committee of the exchange has approved the member firm’s or member corporation’s affiliation with such affiliated corporation. (3) Purchase any security from any customer who is a broker or dealer, or sell any security to such customer: Provided, That the creditor acting in good faith purchases or sells the security for delivery, against full payment of the purchase price, as promptly as practicable in accordance with the ordinary usage of the trade; (4) Effect and finance, for any member of a national secu­ rities exchange who is registered and acts as an odd-lot dealer in securities on the exchange, such member’s transactions as an odd-lot dealer in such securities, or effect and finance, for any joint adventure in which the creditor participates, any trans­ actions in any securities of an issue with respect to which all participants, or all participants other than the creditor, are Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 registered and act on a national securities exchange as odd-lot dealers; (5) Effect transactions for and finance any joint adventure or group in which the creditor participates and in which all par­ ticipants are dealers (whether such participants be acting jointly or severally), or any member thereof or participant therein, for the purpose of facilitating the underwriting or distributing of all or part of an issue of securities (i) not through medium of a national securities exchange, or (ii) the distribution of which has been approved by the appropriate committee of a national securities exchange; (6) Effect for any customer the collection or exchange (other than by sale or purchase) of securities deposited by the customer specifically for such purposes, and (subject to any other applicable provisions of law) receive from or for any customer, and pay out or deliver to or 'for any customer, any money or securities; (7) Effect and carry for any customer transactions in foreign exchange; and (8) Extend and maintain credit to or for any customer without collateral or on any collateral whatever for any purpose other than purchasing or carrying or trading in securities. (g) Specialist’s account—In a special account designated as a specialist’s account, a creditor may effect and finance, for any member of a national securities exchange who is registered and acts as a specialist in securities on the exchange, such member’s transactions as a specialist in such securities, or effect and finance, for any joint adventure in which the creditor partici­ pates, any transactions in any securities of an issue with respect to which all participants, or all participants other than the creditor, are registered and act on a national securities exchange as specialists. Such specialist’s account shall be subject to the same conditions to which it would be subject if it were a general account except that if the specialist’s exchange, in addition to the other requirements applicable to specialists, is designated by the Board of Governors of the Federal Reserve System as requiring reports suitable for supplying current information regarding specialists’ use of credit pursuant to this paragraph, the requirements of § 220.6(h) regarding joint adventures shall not apply to such account and the maximum loan value of a registered security in such account shall be as determined by the creditor in good faith. (h) Special subscriptions account.—In a special subscriptions Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 183 account a creditor may effect and finance the acquisition of a registered security for a customer through the exercise of a right to acquire such security which is evidenced by a warrant or certificate issued to stockholders and expiring within 90 days of issuance, and such special subscriptions account shall be subject to the same conditions to which it would be subject if it were a general account, except that: (1) Each such acquisition shall be treated separately in the account, and prior to initiating the transaction the creditor shall obtain a deposit of cash in the account such that the cash deposited plus the maximum loan value of the securities so acquired equals or exceeds the subscription price, giving effect to a maximum loan value for the securities so acquired of 75 per cent of their current market value as determined by any reasonable method; (2) After October 20, 1967, at the time when credit is ex­ tended pursuant to this paragraph, the creditor shall compute the amount by which the credit exceeds the maximum loan value of the collateral as prescribed by § 220.8 (the Supplement to Regulation T) and the customer shall reduce the credit by an amount equal to at least one-fourth of such sum by the end of each of the four succeeding three-calendar-month periods or until the credit does not exceed the current maximum loan value of the collateral, whichever shall occur first, and, if the creditor fails to obtain the required quarterly reduction or a portion thereof with respect to a particular acquisition within five full business days after such reduction is due, the creditor shall promptly liquidate a portion of the collateral so acquired and apply the proceeds of the sale to reduce the credit, in an amount equal to at least twice the required payment or portion thereof for the first two such liquidations, at least equal to the required payment or portion thereof for the third such liquidation, and at least sufficient so that the remaining credit does not exceed the current maximum loan value of the remaining collateral after the fourth such liquidation: Provided, That, no such liqui­ dation need be in an amount greater than is necessary so that the remaining credit does not exceed the maximum loan value of the remaining collateral determined as of the date the credit was extended: And provided further, That as to loans made between October 20, 1967, and March 11, 1968 such four suc­ ceeding periods shall begin on March 11, 1968; and (3) The creditor shall not permit any withdrawal of cash or securities from the account so long as the remaining credit Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 exceeds the maximum loan value of the remaining collateral in the account, except that when the remaining credit extended in connection with a given acquisition of securities in the account has become equal to or less than the maximum loan value of such securities as prescribed in § 220.8 (the Supplement to Reg­ ulation T) (or in connection with an acquisition after October 20, 1967, the requirements of subparagraph (2) of this section have been fulfilled), such securities shall be transferred to the general account (or, if eligible, to a special convertible security account pursuant to § 220.4(.7)) together with any remaining portion of such credit. In order to facilitate the exercise of a right in accordance with the provisions of this paragraph, a creditor may permit the right to be transferred from a general account to the special subscriptions account without regard to any other requirement of this Part. (i) Special bond account—In a special bond account a creditor may effect and finance transactions in exempted securities and registered non-equity securities for any customer. (7) Special convertible security account----(1) In a special con­ vertible security account a creditor may extend credit on any registered equity security consisting of a security convertible into stock or a security carrying a warrant or right to subscribe to or purchase stock. (2) A special convertible security account shall be subject to the same conditions to which it would be subject if it were a general account except that the maximum loan value of the securities in the account shall be as prescribed from time to time in § 220.8 (the Supplement to Regulation T). (3) Any security which ceases to be an equity security while held in this account shall continue to be treated as an equity security as long as it is continuously held in this account. (4) In the event that any stock is substituted for security held in this account such stock shall thereupon be transferred to the customer’s general account against a deposit of cash or registered equity securities eligible for an extension of credit in this account (counted at their maximum loan value) equal to at least the maximum loan value of the security for which such substitution is made. SECTION 220.5—BORROWING BY MEMBERS, BROKERS, AND DEALERS (a) General rule—It is unlawful for any creditor, directly or indirectly, to borrow in the ordinary course of business as a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 185 broker or dealer on any registered security (other than an exempted security) except: (1) from or through a member bank of the Federal Reserve System; or (2) from any nonmember bank which shall have filed with the Board an agreement which is still in force and which is in the form prescribed by this Part; or (3) to the extent to which, under the provisions of this Part, loans are permitted between members of a national secu­ rities exchange and/or brokers and/or dealers, or loans are permitted to meet emergency needs. (b) Agreements of nonmember banks__An agreement filed pur­ suant to section 8(a) of the Act (15 U.S.C. 78h(a)) by a bank not a member of the Federal Reserve System shall be substantially in the form contained in Form F.R. T-2 if the bank has its principal place of business in a territory or insular possession of the United States, or if it has an office or agency in the United States and its principal place of business outside the United States. The agreement filed by any other nonmember bank shall be in substantially the form contained in Form F.R. T-l. Any nonmember bank which has executed any such agree­ ment may terminate the agreement if it obtains the written consent of the Board. Blank forms of such agreements, informa­ tion regarding their filing or termination, and information regarding the names of nonmember banks for which such agree­ ments are in force, may be obtained from any Federal Reserve Bank. (c) Borrowing from other creditors.—A creditor may borrow from another creditor in the ordinary course of business as a broker or dealer on any registered security to the extent and subject to the terms upon which the latter may extend credit to him in accordance with the provisions of this Part, and subject to any other applicable provisions of law. SECTION 220.6—CERTAIN TECHNICAL DETAILS (ft) Accounts of partners.—In case a general account, special bond account subject to § 220.4 (i), or special convertible security account subject to § 220.4 (/) is the account of a partner of the creditor, the creditor, in calculating the adjusted debit balance of such account and the maximum loan value of the securities therein, shall disregard the partner’s financial relations with the firm as reflected in his capital and ordinary drawing ac­ counts. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 (b) Contribution to joint adventure—In case a general account, special bond account subject to § 220.4(f), or special convertible security account subject to § 220.4 (/) is the account of a joint adventure in which the creditor participates, the adjusted debit balance of such account shall include, in addition to the items specified in § 220.3(d), any amount by which the creditor’s con­ tribution to the joint adventure exceeds the contribution which he would have made if he had contributed merely in proportion to his right to share in the profits of the joint adventure. (c) Guaranteed accounts—No guarantee of a customer’s ac­ count shall be given any effect for purposes of this Part. (d) Transfer of accounts—(1) In the event of the transfer of a general account, special bond account subject to § 220.4 (i), or special convertible security account subject to § 220.4 {j) from one creditor to another, such account may be treated for the purposes of this Part as if it had been maintained by the transferee from the date of its origin: Provided, That, the trans­ feree accepts in good faith a signed statement of the transferor that no cash or securities need be deposited in such account in connection with any transaction that has been effected in such account or, in case he finds that it is not practicable to obtain such a statement from the transferor, accepts in good faith such a signed statement from the customer. (2) In the event of the transfer of a general account, special bond account subject to § 220.4(1), or special convertible secur­ ity account subject to § 220.4(j), from one customer to another, or to others, as a bona fide incident to a transaction that is not undertaken for the purpose of avoiding the requirements of this Part, each such transferee account may be treated by the creditor for the purposes of this Part as if it had been main­ tained for the transferee from the date of its origin: Provided, That, the creditor accepts in good faith and keeps with such transferee account a signed statement of the transferor describ­ ing the circumstances giving rise to the transfer. (e) Reorganizations.—A creditor may, without regard to the other provisions of this Part, effect for a customer the exchange of any registered or exempted security in a general account, special bond account subject to § 220.4 (i), or special convertible security account subject to § 220.4(7), for the purpose of par­ ticipating in a reorganization or recapitalization in which the security is involved: Provided, That if an unregistered non­ exempted security is acquired in exchange, the creditor shall not, for a period of 60 days following such acquisition, permit Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 187 the withdrawal of such security or the proceeds of its sale from such account except to the extent that such security or proceeds could be withdrawn if the security were a registered security. (/) Time of receipt of funds or securities.—For the purposes of this Part, a creditor may, at his option (1) treat the receipt in good faith of any check or draft drawn on a bank which in the ordinary course of business is payable on presentation, or any order on a savings bank with passbook attached which is so payable, as receipt of payment of the amount of such check, draft or order; (2) treat the shipment of securities in good faith with sight draft attached as receipt of payment of the amount of such sight draft; and (3) in the case of the receipt in good faith of written or telegraphic notice in connection with a special omnibus account of a customer not located in the same city that a specified security or a check or draft has been dispatched to the creditor, treat the receipt of such notice as receipt of such security, check or draft: Provided, however, That if the creditor receives notice that such check, draft, order, or sight draft described in subparagraphs (1),(2), or (3) if this para­ graph is not paid on the day of presentation, or if such security, check or draft described in subparagraph (3) of this paragraph is not received by the creditor within a reasonable time, the creditor shall promptly take such action as he would have been required to take by the appropriate provisions of this Part if the provisions of this paragraph had not been utilized. (</) Interest, service charges, etc----(1) Interest on credit maintained in a general account, special bond account subject to § 220.4(7), or special convertible security account subject to § 220.4 (j), communication charges with respect to transactions in such account, shipping charges, premiums on securities bor­ rowed in connection with short sales or to effect delivery, divi­ dends or other distributions due on borrowed securities, and any service charges (other than commissions) which the creditor may impose, may be debited to such account in accordance with the usual practice and without regard to the other provisions of this Part, but such items so debited shall be taken into con­ sideration in calculating the net credit or net debit balance of such account. (2) A creditor may permit interest, dividends or other dis­ tributions received by the creditor with respect to securities in a general account, special bond account subject to § 220.4 (i), or special convertible security account subject to § 220.4 (y), to be withdrawn from such account only on condition that the adjusted debit balance of such account does not exceed the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

188 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 maximum loan value of the securities in such account after such withdrawal, or on condition that (i) such withdrawal is made within 35 days after the day on which, in accordance with the creditor’s usual practice, such interest, dividends or other dis­ tributions are entered in such account, (ii) such entry in the account has not served in the meantime to permit in the account any transaction which could not otherwise have been effected in accordance with this Part, and (iii) any cash withdrawn does not represent any arrearage on the security with respect to which it was distributed, and the current market value of any securities withdrawn does not exceed 10 per cent of the current market value of the security with respect to which they were distributed. Failure by a creditor to obtain in a general account, special bond account subject to § 220.4(f), or special convertible security account subject to § 220.4 (/), any cash or securities that are distributed with respect to any security in such account shall, except to the extent that withdrawal would be permitted under the preceding sentence, be deemed to be a transaction in such account which occurs on the day on which the distribu­ tion is payable and which requires the creditor to obtain in accordance with § 220.3(6) a deposit of cash or maximum loan value of securities at least as great as that of the distribution. (h) Borrowing and lending securities.—Without regard to the other provisions of this Part, a creditor (1) may make a bona fide deposit of cash in order to borrow securities (whether registered or unregistered) for the purpose of making delivery of such securities in the case of short sales, failure to receive securities he is required to deliver, or other similar cases, and (2) may lend securities for such purpose against such a deposit. (i) Credit for clearance of securities.—The extension or main­ tenance of any credit which is maintained for only a fraction of a day (that is, for only part of the time between the beginning of business and midnight on the same day) shall be disregarded for the purposes of this Part, if it is incidental to the clearance of transactions in securities directly between members of a na­ tional securities exchange or through an agency organized or employed by such members for the purpose of effecting such clearance. (j) Foreign currency—If foreign currency is capable of being converted without restriction into United States currency, a creditor acting in good faith may treat any such foreign cur­ rency in an account as a credit to the account in an amount determined in accordance with customary practice. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 189 (k) Innocent mistakes—If any failure to comply with this Part results from a mechanical mistake made in good faith in executing a transaction, recording, determining, or calculating any loan, balance, market price or loan value, or other similar matter, the creditor shall not be deemed guilty of a violation of this Part if promptly after the discovery of such mistake he takes whatever action may be practicable in the circumstances to remedy such mistake. SECTION 220.7—MISCELLANEOUS PROVISIONS (ti) Arranging for loans by others—A creditor may arrange for the extension or maintenance of credit to or for any customer of such creditor by any person upon the same terms and conditions as those upon which the creditor, under the provisions of this Part, may himself extend or maintain such credit to such cus­ tomer, but only upon such terms and conditions, except that this limitation shall not apply with respect to the arranging by a creditor for a bank subject to Part 221 of this chapter (Regula­ tion U) to extend or maintain credit on registered securities or exempted securities. (b) Maintenance of credit.—Except as otherwise specifically forbidden by this Part, any credit initially extended without violation of this Part may be maintained regardless of (1) reductions in the customer’s equity resulting from changes in market prices, (2) the fact that any security in an account ceases to be registered or exempted, and (3) any change in the maxi­ mum loan values or margin requirements prescribed by the Board under this Part. In maintaining any such credit, the creditor may accept or retain for his own protection additional collateral of any description, including unregistered securities. (c) Declaration as to purpose of loan.—Every extension of credit on a registered security (other than an exempted secur­ ity) shall be deemed to be for the purpose of purchasing or carrying or trading in securities, unless the creditor has accepted in good faith a written statement by the customer signed by the customer which shall state the use to be made of such credit and which shall state specifically that such credit is neither for the purpose of purchasing or carrying or trading in securities nor for the purpose of evading or circumventing the provisions of this Part. To accept the customer’s statement in good faith, the creditor must (1) be alert to the circumstances surround­ ing the extension of credit and (2) if he has any information which would cause a prudent man not to accept the statement Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 without inquiry, have investigated and be satisfied that the cus­ tomer’s statement is truthful. A creditor may rely upon such a written statement if accepted in accordance with this paragraph. (d) Reports—Every creditor shall make such reports as the Board may require to enable the Board to perform the functions conferred upon it by the Act. (e) Additional requirements by exchanges and creditors.— Nothing in this Part shall (1) prevent any exchange from adopting and enforcing any rule or regulation further restricting the time or manner in which its members must obtain initial or additional margin in customers’ accounts because of trans­ actions effected in such accounts, or requiring such members to secure or maintain higher margins, or further restricting the amount of credit which may be extended or maintained by them, or (2) modify or restrict the right of any creditor to require additional security for the maintenance of any credit, to refuse to extend credit, or to sell any securities or property held as collateral for any loan or credit extended by him. (f) Acting as agent—No creditor shall act as agent of any person extending credit which the creditor knows or should know is secured directly or indirectly by any registered security unless the creditor accepts in good faith a statement signed by such person that he does not extend or maintain credit to or for borrowers in violation of Parts 207, 220, or 221 of this Chapter (Regulations G, T or U). For this purpose, such activities of an “agent” include, for example, receiving securities to be used as collateral for such credit, determining whether the market value of the collateral for such credit is adequate, and requir­ ing the deposit of additional collateral or the reduction of such credit. In determining whether there has been an extension of credit subject to the provisions of Parts 207, 220, or 221 of this Chapter, and whether he can rely in good faith on the statement described herein, the creditor must (1) be alert to the circum­ stances surrounding the extension of credit and (2) if he has any information that would cause a prudent man not to accept the statement without inquiry, must have investigated and be satisfied that the credit either is not subject to such Part or is extended or maintained in conformity with the provisions of such Part. Section 220.8 (the Supplement to Regulation T), prescribing maximum loan values, margin required for short sales and retention requirements, which are changed from time to time, is printed separately. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 191 SUPPLEMENT TO REGULATION T Section 220.8—SUPPLEMENT Issued by the Board of Governors of the Federal Reserve System Effective March 11, 1968 (ft) Maximum loan value for general accounts.—The maximum loan value of securities in a general account subject to § 220.3 shall be: (1) of a registered non-equity security held in the account on March 11, 1968 and continuously thereafter and of a regis­ tered equity security (except as provided in § 220.3(c) and § 220.8(5), 30 per cent of the current market value of such securities. (2) of an exempted security held in the account on March 11, 1968, and continuously thereafter the maximum loan value of the security as determined by the creditor in good faith. (5) Maximum loan value for special convertible security ac­ count—The maximum loan value of a registered equity security eligible for a special convertible security account pursuant to § 220.4(7) shall be 50 per cent of the current market value of the security. (c) Margin required for short sales.—The amount to be in­ cluded in the adjusted debit balance of a general account, pur­ suant to § 220.3(d)(3), special bond account pursuant to § 220.4(0, or special convertible security account subject to § 220.4 (j) as margin required for short sales of securities (other than exempted securities) shall be 70 per cent of the current market value of each such security. (d) Retention requirement—(1) In the case of a general ac­ count which would have an excess of the adjusted debit balance of the account over the maximum loan value of the securities in the account following a withdrawal of cash or securities from the account, pursuant to § 220.3(5) (2), the “retention require­ ment” of an exempted security held in the account on March 11, 1968, and continuously thereafter shall be equal to its maxi­ mum loan value as determined by the creditor in good faith, and the “retention requirement” of a registered non-equity security held in the account on March 11, 1968, and continuously Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 thereafter and of a registered equity security shall be 70 per cent of the current market value of the security. (2) In the case of a special convertible security account sub­ ject to § 220.4(j) which would have an excess of the adjusted debit balance of the account over the maximum loan value of the securities in the account following a withdrawal of cash or securities from the account the retention requirement of a secur­ ity having loan value in the account shall be 70 per cent of the current market value of the security. (3) For the purpose of effecting a transfer from a general account to a special convertible security account subject to § 220.4(7), the retention requirement of a security described in § 220.4(7) shall be 70 per cent of it current market value. (e) Securities having no loan value in general account.—No securities other than an exempted security or a registered non­ equity security held in the account on March 11, 1968, and con­ tinuously thereafter, and a registered equity security shall have any loan value in a general account except that a registered equity security eligible for the special convertible security ac­ count pursuant to § 220.4(7) shall have loan value only if held in the account on March 11, 1968, and continuously thereafter. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 193 REGULATION U (12 CFR 221) As Amended effective March 11, 1968 CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING REGISTERED STOCKS SECTION 221.1—GENERAL RULE (a) Purpose credit secured by stock.—No bank shall extend any credit secured directly or indirectly 1 by any stock 2 for the purpose of purchasing or carrying any stock registered on a national securities exchange3 (and no bank shall extend any credit described in § 221.3(7) regardless of whether or not such credit is secured by any stock) in an amount exceeding the maxi­ mum loan value of the collateral, as prescribed from time to time for stocks in § 221.4 (the Supplement to Regulation U) and as determined by the bank in good faith for credit subject to § 221.3(s) for any collateral other than stocks: Provided, That unless held as collateral for such credit on October 20, 1967, and continuously thereafter, any collateral other than stock shall have loan value for the purpose of this Part only as collateral for a credit which is not secured by stock, as described in § 221.3(g), and any collateral consisting of convertible securities described in § 221.3(f) shall have loan value only for the purpose of that section, and not for other credit subject to this Part. (5) Substitutions and withdrawals.—Except as permitted in paragraph (c), of this section, while a bank maintains any credit subject to this Part, whenever extended, the bank shall not at any time permit any withdrawal or substitution of collateral unless either (1) the credit would not exceed the maximum loan value of the collateral after such withdrawal or substitution, or (2) the credit is reduced by at least the amount by which the maximum loan value of any collateral deposited is less than the “retention requirement” of any collateral withdrawn. The “re­ tention requirement” of collateral other than stock is the same as its maximum loan value and the “retention requirement” of collateral consisting of stock is prescribed from time to time in § 221.4 (the Supplement to Regulation U). (c) Same-day transactions. — Except as provided in § 221.3 (r)(l), a bank may permit a substitution of stock 1 As defined in § 221.3(e). 2 As defined in § 221.3(1). 3 Sometimes referred to as a “purpose credit’’. See § 221.3(b), § 221,3(1), and § 221.3 (m). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 whether registered or unregistered, effected by a purchase and sale on orders executed within the same day: Provided, That (1) if the proceeds of the sale exceed the total cost of the pur­ chase, the credit is reduced by at least an amount equal to the “retention requirement” with respect to the sale less the “re­ tention requirement” with respect to the purchase, or (2) if the total cost of the purchase exceeds the proceeds of the sale, the credit may be increased by an amount no greater than the maximum loan value of the stock purchased less the maximum loan value of the stock sold. If the maximum loan value of the collateral securing the credit has become less than the amount of the credit, the amount of the credit may nonetheless be in­ creased if there is provided additional collateral having maxi­ mum loan value at least equal to the amount of the increase. (d) Single credit rule.—For the purpose of this Part, except for credit subject to § 221.3 (s) or (t), the entire amount of the credit extended to any customer by any bank at any time for the purpose of purchasing or carrying stocks registered on a national securities exchange shall be considered a single credit; and all the collateral securing such indebtedness shall be considered in determining whether or not the loan complies with this Part. SECTION 221.2—EXCEPTIONS TO GENERAL RULE Notwithstanding the provisions of § 221.1, a bank may extend and may maintain any credit for the purpose specified in § 221.1, without regard to the limitations prescribed therein, or in § 221.3(f) if the credit comes within any of the following de­ scriptions : (a) Any credit extended to a bank or to a foreign banking institution; (b) Any credit extended to a “plan-lender” as defined.in § 207.4(a) of Part 207 of this Chapter (Regulation G) to finance a plan described therein: Provided, That in no event does the bank have recourse to any stock purchased pursuant to such plan; (c) Any credit extended to a dealer, or to two or more dealers, to aid in the financing of the distribution of securities to cus­ tomers not through the medium of a national securities exchange; (d) Any credit extended to a broker or dealer that is extended in exceptional circumstances in good faith to meet his emergency needs; (e) Any credit extended to a broker or dealer secured by any securities which, according to written notice received by the bank from the broker or dealer pursuant to a rule of the Securities and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 195 Exchange Commission concerning the hypothecation of cus­ tomers’ securities (Rule 8c-l (17 CFR § 240.8c-l) or Rule 15c2-l (17 CFR § 240.15c2-l)), are securities carried for the account of one or more customers: Provided, That the bank accepts in good faith4 from the broker or dealer a signed statement to the effect that he is subject to the provisions of Part 220 of this Chapter (Regulation T) (or that he does not extend or maintain credit to or for customers except in accordance therewith as if he were subject thereto) ; (/) Any credit extended to finance the purchase or sale of securities for prompt delivery which is to be repaid in the ordinary course of business upon completion of the transaction: Provided, That the advance is not made to a person described in § 221.3 (q) : And provided further, That it is either (1) extended to a broker or dealer, or (2) extended for a purpose other than to enable the borrower to pay for stock purchased in an account subject to Part 220 of this Chapter (Regulation T); (g) Any credit extended against securities in transit, or sur­ rendered for transfer, which is payable in the ordinary course of business upon arrival of the securities or upon completion of the transfer: Provided, That the credit is not extended to a person described in § 221.3(g): And provided further, That it is either (1) extended to a broker or dealer, or (2) extended for other than to enable the customer to pay for stock purchased in an account subject to Part 220 of this Chapter (Regulation T); (h) Any credit which is to be repaid on the calendar day on which it is extended: Provided, That the credit is not extended to a person described in § 221.3(g): And provided further, That it is either (1) extended to a broker or dealer, or (2) extended for a purpose other than to enable the customer to pay for stock purchase in an account subject to Part 220 of this Chapter (Reg­ ulation T); (i) Any credit extended outside the States of the United States and the District of Columbia; (j) Any credit extended to a member of a national securities exchange for the purpose of financing his or his customers’ bona fide arbitrage transactions in securities. For the purposes of this paragraph, the term "arbitrage” means (1) a purchase or sale of a security in one market together with an offsetting sale or purchase of the same security in a different market at as nearly the same time as practicable, for the purpose of taking advantage of a difference in prices in the two markets, or (2) 4 As described in § 221.3(a). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 a purchase of a security which is, without restriction other than the payment of money, exchangeable or convertible within 90 calendar days following the date of its purchase into a second security together with an offsetting sale at or about the same time of such second security, for the purpose of taking advantage of a disparity in the prices of the two securities; and (fc) Any credit extended to a member of a national securities exchange for the purpose of financing such members’ transac­ tion as an odd-lot dealer in securities with respect to which he is registered on such national securities exchange as an odd-lot dealer. SECTION 221.3—MISCELLANEOUS PROVISIONS (a) Required statement as to stock-secured loan.—In connec­ tion with an extension of credit secured directly or indirectly by any stock, the bank shall obtain and retain in its records for at least six years after such credit is extinguished a statement in conformity with the requirements of Federal Reserve Form U-l executed by the recipient of such extension of credit (some­ times referred to as the “customer”) and executed and ac­ cepted in good faith by a duly authorized officer of the bank prior to such extension. In determining whether or not an exten­ sion of credit is for the purpose specified in § 221.1 or for any of the purposes specified in § 221.2 the bank may rely on the statement executed by the customer if accepted in good faith. To accept the customer’s statement in good faith, the officer must (1) be alert to the circumstances surrounding the credit and (2) if he has any information which would cause a prudent man not to accept the statement without inquiry, have investi­ gated and be satisfied that the customer’s statement is truthful. (b) Purpose of a credit.—The “purpose of a credit” is deter­ mined by substance rather than form. (1) Credit which is for the purpose, whether immediate, incidental, or ultimate, of purchasing or carrying a stock is “purpose credit”, despite any temporary application of funds otherwise. (2) Credit to enable the customer to reduce or retire in­ debtedness which was originally incurred to purchase a stock is for the purpose of “carrying” such a security. (3) Credit for the purpose of purchasing or carrying a se­ curity issued by an investment company registered pursuant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), whose assets customarily include registered stocks, is for the purpose of purchasing or carrying such stocks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 197 (c) Indirectly secured.—The term “indirectly secured” in­ cludes any arrangement as to assets of the customer which (1) serves to protect the interest of the bank, (2) serves to make assets of the customer more readily available to the bank than to other creditors of the customer, or (3) under which the cus­ tomer surrenders the right to dispose of assets so long as the credit remains outstanding: Provided, That the foregoing shall not apply to securities held by the bank only in the capacity of custodian, depositary or trustee, or under similar circumstances, if the bank in good faith has not relied upon such securities as collateral in the extension or maintenance of the particular credit. (d) List of registered stocks.—In determining whether a security is a “stock registered on a national securities exchange” or a security described in paragraph (b)(3) of this section, a bank may rely upon any reasonably current record of such securities that is published or specified in a publication of the Board of Governors of the Federal Reserve System. A bank may also rely upon such a record to determine whether a stock into which a security, warrant, or right is convertible or exchange­ able is a stock registered on a national securities exchange. (e) Renewals and extensions of maturity.—The renewal or extension of maturity of a credit need not be treated as the ex­ tension of a credit if the amount of the credit is not increased except by the addition of interest or service charges in respect to the credit or of taxes on transactions in connection with the credit. (f) Transfers.—A bank, without following the requirements of this Part as to the extension of a credit may: (1) permit the transfer of a credit from one customer to another, or to others: Provided, That a statement by the trans­ feror, describing the circumstances giving rise to the transfer, is accepted in good faith5 and signed by an officer of the bank as having been so accepted, and kept with each such transferee account, or (2) accept the transfer of a credit originally extended in conformity with the requirements of this Part directly from another bank: Provided, That the statement of purpose, executed by the customer in connection with the original extension of credit and accepted in good faith and signed by an officer of the bank originally extending such credit in conformity with the requirements of § 221.3(a), is obtained and kept with each such transferee account, 6 As described in § 221.3 (a), Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 And provided further, That any transfer pursuant to this para­ graph is made as a bona fide incident to a transaction not undertaken for the purpose of avoiding the requirements of this Part, the amount of the credit is not increased and the collateral for the credit is not changed; and, after such transfer, a bank may permit such withdrawals and substitutions of collateral as are permitted in respect to a credit it extends subject to this Part. {g) Reorganizations and recapitalizations.—Nothing in this Part shall be construed to prevent a bank from permitting with­ drawals or substitutions of securities to enable a customer to participate in a reorganization or recapitalization. (h) Mistakes in good faith.—No mistake made in good faith in connection with the extension or maintenance of a credit shall be deemed to be a violation of this Part. (i) Action for bank’s own protection.—-Nothing in this Part shall be construed as preventing a bank from taking such action as it shall deem necessary in good faith for its own protection. (j) Reports.—Every bank, and every person engaged in the business of extending credit who, in the ordinary course of business, extends credit for the purpose of purchasing or carry­ ing securities registered on a national securities exchange, shall make such reports as the Board of Governors of the Federal Reserve System may require to enable it to perform the func­ tions conferred upon it by the Securities Exchange Act of 1934 (15 U.S.C. 78). (k) Definitions—Except as otherwise provided in this Part, terms herein have the meanings assigned to them in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)), except that the term “bank” does not include a bank which is a member of a national securities exchange. (I) Stock.—The term “stock” includes any security commonly known as a stock; any voting trust certificate or other instru­ ment representing such a security; any security convertible with or without consideration into such security, certificate or other instrument, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right. (m) Credit subject to § 221.1.—A “credit subject to § 221.1” is a credit which is (1) secured directly or indirectly by any stock (or made to a person described in paragraph (q) of this section), (2) extended for the purpose of purchasing or carrying any stock registered on a national securities exchange, or any Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 199 security convertible8 with or without consideration into such a stock or carrying any warrant or right to subscribe to or pur­ chase or carry such a stock, or any such warrant or right (such security, warrant or right is sometimes referred to as a “security convertible into a stock registered on a national securities ex­ change”), and (3) not excepted by § 221.2. (n) Segregation of collateral.— (1) The bank shall identify all the collateral used to meet the requirements of § 221.1 (the entire credit being considered a single credit and collateral being similarly considered, as required by § 221.1(d) ) and shall not cancel the identification of any portion thereof except in cir­ cumstances that would permit the withdrawal of that portion. Such identification may be made by any reasonable method, and in the case of a credit outstanding at the opening of business on June 15, 1959, need not be made until immediately before some change in that or other indebtedness of the customer or in collateral therefore. (2) Only the collateral required to be so identified shall have loan value for purposes of § 221.1 or be subject to the restric­ tions therein specified with respect to withdrawals and substitu­ tions; and (3) For any credit extended to the same customer that is not subject to § 221.1 (other than a credit described in § 221.2(b), (d), {f), (g), or (h) ), the bank shall in good faith require as such collateral not so identified as the bank would require (if any) if it held neither the indebtedness subject to § 221.1 nor the identified collateral. This shall not be construed, however, to require the bank, after it has extended any credit, to obtain any collateral therefor because of any deficiency in collateral already existing at the opening of business on June 15, 1959, or any decline in the value or quality of the collateral or in the credit rating of the customer. (4) Nothing in this Part shall require a bank to waive or forego any lien, and nothing in this Part shall apply to a credit extended to enable the customer to meet emergency expenses not reasonably foreseeable, provided the extension of credit is supported by a statement executed by the customer and accepted in good faith and signed by an officer of the bank as having been so accepted in conformity with the requirements of § 221.3(a). For this purpose, such emergency expenses shall include expenses arising from circumstances such as the death or disability of the customer, or some other change in his circumstances in- « See also § 221.8 (r) and (t). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 volving extreme hardship, not reasonably foreseeable at the time the credit was extended. The opportunity to realize monetary gain is not a “change in his circumstances” for this purpose. (o) Specialist.—In the case of a credit extended to a member of a national securities exchange who is registered and acts as a specialist in securities on the exchange for the purpose of financing such member’s transactions as a specialist in such securities, the maximum loan value of any stock shall be as de­ termined by the bank in good faith: Provided, That the spe­ cialist’s exchange, in addition to other requirements applicable to specialists, is designated by the Board of Governors of the Federal Reserve System as requiring reports suitable for supply­ ing current information regarding specialists’ use of credit pur­ suant to this section. , (p) Subscriptions issued to stockholders.—An extension of credit need not comply with the other requirements of this Part if it is to enable the customer to acquire a stock by exercising a right to acquire such stock which is evidenced by a warrant or certificate issued to stockholders and expiring within 90 days of issuance: Provided, That: (1) each such aquisition under this paragraph shall be treated separately, and the credit when extended shall not ex­ ceed 75 per cent of the current market value of the stock so acquired as determined by any reasonable method; (2) after October 20, 1967, at the time credit is extended pursuant to this paragraph, the bank shall compute the amount by which the credit exceeds the maximum loan value of the collateral as prescribed by § 221.4 and the customer shall reduce the credit by an amount at least equal to one-fourth of such sum by the end of each of the four succeeding three-calendar month periods or until the credit does not exceed the current maximum loan value of the stock, whichever shall occur first, and if the bank fails to obtain the required quarterly reduction or a portion thereof with respect to a particular acquisition within five full business days after such reduction is due, the bank shall promptly sell a portion of the collateral so acquired and apply the proceeds of the sale to reduce the credit, in an amount at least equal to twice the required payment or portion thereof for the first two such reductions, at least equal to the required payment or portion thereof for the third such reduction, and at least sufficient so that the remaining credit does not exceed the current maximum loan value of the remaining collateral after the fourth such reduction: Provided, That no such reduction need be in an Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 201 amount greater than is necessary so that the remaining credit does not exceed the maximum loan value of the remaining collateral determined as of the date when the credit was ex­ tended : And provided further, That as to credit extended between October 20, 1967, and March 11, 1968, such four succeeding periods shall begin on March 11, 1968; and (3) while the customer has any credit outstanding at the bank under this paragraph no withdrawal of cash or substitution or withdrawal of stock used as collateral for such extension of credit shall be permissible, except that when the remaining credit has become equal to or less than the maximum loan value of the remaining stock as prescribed for § 221.1 or § 221.3 (t) in § 221.4 (the Supplement to Regulation U) whichever is applicable (or with respect to credit extended after October 20, 1967, the requirements of the preceding clause have been fulfilled) the remaining stock and related indebtedness shall thereafter be treated as subject to § 221.1 or § 221.3 (t), whichever is ap­ plicable, instead of this paragraph. In order to facilitate the exercise of a right under this paragraph, a bank may permit the right to be withdrawn from a credit subject to § 221.1 without regard to any other requirement of this Part. (q) Credit to certain lenders.—Any credit extended to a customer not subject to this Part or to Part 220 of this Chapter (Regulation T) engaged principally, or as one of the customer’s important activities, in the business of extending credit for the purpose of purchasing or carrying stocks registered on a national securities exchange, is a credit for the purpose of purchasing or carrying stocks so registered unless the credit and its purposes are effectively and unmistakably separated and disassociated from any financing or refinancing, for the customer or others, of any purchasing or carrying of stocks so registered. Any credit extended to any such customer, unless the credit is so separated and disassociated or is excepted by § 221.2, is a credit “subject to § 221.1” regardless of whether or not the credit is secured by any stock; and no bank shall extend any such credit subject to § 221.1 to any such customer on or after June 15, 1959, without collateral or without the credit being secured as would be re­ quired by this Part if it were secured by any stock. Any such credit subject to § 221.1 to any such customer, whether or not made after June 15, 1959, shall be subject to the other provisions of this Part applicable to credit subject to § 221.1, including pro­ visions regarding withdrawal and substitution of collateral. (r) Convertible securities.— (1) If, after June 15, 1959, and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 prior to October 21, 1967, credit was extended for the purpose of purchasing or carrying a security convertible into a stock registered on a national securities exchange and the credit was secured by such a security, and after October 20, 1967, there is substituted any stock as direct or indirect collateral for such credit, the credit shall thereupon be treated as subject to § 221.1 or § 221.3(f), whichever is applicable. In any such case, the amount of the outstanding credit, or such amount plus any increase therein to enable the customer to acquire a stock so registered through the conversion of the security pursuant to its terms, shall not be permitted on the date of such substitution to exceed the maximum loan value of the collateral for the credit: Provided, That any reduction in the credit or deposit of collateral required on that date to meet this requirement may be brought about within 30 days of such substitution, or by April 10, 1968, whichever is later. (2) Any credit extended after October 20, 1967, for the pur­ pose of purchasing or carrying a security convertible into a stock registered on a national securities exchange, if the credit is secured, directly or indirectly, by any stock, is a credit subject to § 221.1 or § 221.3(f), whichever is applicable: Provided, That any reduction of the credit or deposit of collateral necessary to meet the requirements of § 221.4 (the Supplement to Regulation U) in respect to such credit extended before March 11, 1968, need not be brought about before April 10, 1968. (s) Credit secured by collateral other than stocks.—A bank may extend credit for the purpose of purchasing or carrying a stock registered on a national securities exchange secured by collateral other than stock, and, in the case of such credit, the maximum loan value of the collateral shall be as determined by the bank in good faith. (t) Credit on convertible securities.— (1) A bank may extend credit for the purpose specified in § 221.1 on collateral consisting of any security convertible into a stock registered on a national securities exchange or any security carrying a warrant or right to subscribe to or purchase a stock so registered. (2) Credit extended under this paragraph shall be subject to the same conditions as if it were subject to § 221.1 except: (i) the entire amount of such credit shall be considered a single credit treated separately from the single credit specified in § 221.1(d) and all the collateral securing such credit shall be considered in determining whether or not the credit complies with this Part, and (ii) the maximum loan value of the collateral Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 203 shall be as prescribed from time to time in § 221.4 (the Supple­ ment to Regulation U). (3) Any convertible security originally eligible as collateral for a credit extended under this paragraph shall be treated as such as long as continuously held as collateral for such credit even though it ceases to be convertible or to carry warrants or rights. (4) In the event that any stock is substituted for a convertible security held as collateral for a credit extended under this para­ graph, the stock and any credit extended on it in compliance with this Part shall thereupon be treated as subject to § 221.1 and the credit extended under this paragraph shall be reduced by an amount equal to the maximum loan value of the security with­ drawn less the maximum loan value of any convertible security described in subparagraph (1) of this paragraph deposited as collateral. (u) Bank acting as agent.—No bank shall act as agent of any person extending credit which the bank knows or should know is secured directly or indirectly by any registered security unless the bank accepts in good faith7 a statement signed by such person that he does not extend or maintain credit to or for customers in violation of Part 207, 220, or 221 of this Chapter (Regulations G, T, or U). For this purpose, such activities of an “agent” include, for example, receiving securities to be used as collateral for such credit, determining whether the market value of the collateral for such credit is adequate, and requiring the deposit of additional collateral or the reduction of such credit. In de­ termining whether there has been an extension of credit subject to the provisions of such Part, and whether it can rely in good faith on the statement described herein, the bank shall (1) be alert to the circumstances surrounding the extension of credit and (2) if it has information that would cause a prudent man not to accept the statement without inquiry, must have investi­ gated and be satisfied that the credit either is not subject to such Part or is extended or maintained in conformity with the provisions of such Part. (v) Arranging for credit.—No bank shall arrange for the extension or maintenance of any credit for the purpose of pur­ chasing or carrying any stock registered on a national securities exchange, except upon the same terms and conditions on which the bank itself could extend or maintain such credit under the provisions of this Part. 7 Aa described in § 221.3(a). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 SUPPLEMENT TO REGULATION U Section 221.4—SUPPLEMENT Issued by the Board of Governors of the Federal Reserve System Effective March 11, 1968 (a) Maximum loan value of stocks.—For the purpose of § 221.1, the maximum loan value of any stock, whether or not registered on a national securities exchange, shall be 30 per cent of its current market value, as determined by any reasonable method. (b) Maximum loan value of convertible securities subject to § 221.3(t).—For the purpose of § 221.3(1), the maximum loan value of any security against which credit is extended pursuant to § 221.3(f) shall be 50 per cent of its current market value, as determined by any reasonable method. (c) Retention requirement.—For the purpose of § 221.1, in the case of a loan which would exceed the maximum loan value of the collateral following a withdrawal of collateral, the “reten­ tion requirement” of a stock, whether or not registered on a national securities exchange, and of a convertible security sub­ ject to § 221.3(f), shall be 70 per cent of its current market value, as determined by any reasonable method. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 205 REGULATION G (12 CFR 207) Effective March 11, 1968 CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS FOR PURPOSE OF PURCHASING OR CARRYING REGISTERED EQUITY SECURITIES SECTION 207.1—GENERAL RULE (a) Registration.—Every person who, in the ordinary course of his business, during any calendar quarter ended after October 20, 1967, extends or arranges for the extension of a total of fifty thousand dollars ($50,000) or more, or has outstanding at any time during the calendar quarter, a total of one hundred thousand dollars ($100,000) or more, in credit, secured directly or indirectly, in whole or in part, by collateral that includes any registered equity securities, unless such person is subject to Part 220 (Regulation T) or Part 221 (Regulation U) of this Chapter, is subject to the registration requirements of this paragraph and shall, within 30 days following the end of the calendar quarter during which the person becomes subject to such registration requirements, register with the Board of Governors of the Fed­ eral Reserve System by filing a statement in conformity with the requirements of Federal Reserve Form G-l with the Federal Reserve Bank of the district in which the principal office of the lender is located: Provided, That no such statement need be filed with respect to credit extended in the calendar quarter that ended December 31, 1967, until April 10, 1968. (b) Termination of registration.—Any person so registered who has not, during the preceding six calendar months, extended or maintained or arranged for the extension or maintenance of any credit secured directly or indirectly, in whole or in part, by collateral that includes any registered equity securities may apply for termination of such registration by filing Federal Reserve Form G-2 with the Federal Reserve Bank of the district in which the principal office of the lender is located. (c) Definition of lender and applicability of margin require­ ments.—Any person subject to the registration requirements of paragraph (a) of this section who, in the ordinary course of his business, extends or maintains or arranges for the extension or maintenance of any credit for the purpose of purchasing or Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 carrying any registered equity security1 (hereinafter called “purpose credit”), if such credit is secured directly or indirectly 2 in whole or in part by collateral that includes any such security, is a “lender” subject to this Part and shall not after February 1, 1968, except as provided in section 207.4(a), extend or arrange for the extension of any purpose credit in an amount exceeding the maximum loan value of the collateral, as prescribed from time to time for registered equity securities in section 207.5 (the Supplement to Regulation G), or as determined by the lender in good faith for any collateral other than registered equity securi­ ties: Provided, That any collateral consisting of convertible securities described in paragraph (d) of this section shall have loan value only as provided in that paragraph: And provided further, That in respect to a credit extended after February 1, 1968, and before March 11, 1968, any reduction in the credit or deposit of collateral required to meet this requirement shall be accomplished by April 10, 1968. (d) Credit on convertible securities.— (1) A lender may extend credit for the purpose specified in paragraph (c) of this section on collateral consisting of any security convertible into a registered equity security or any security carrying a warrant or right to subscribe to or purchase such a security (sometimes herein referred to as a “convertible security”). (2) Credit extended under this paragraph shall be subject to the same conditions as any other credit subject to this section except: (A) the entire amount of such credit shall be considered a single credit treated separately from the single credit specified in paragraph (g) of this section and all the collateral securing such credit shall be considered in determining whether or not the credit complies with this Part, and (B) the maximum loan value of the collateral shall be as prescribed from time to time in section 207.5(6) (the Supplement to Regulation G). (3) Any convertible security originally eligible as collateral for a credit extended under this paragraph shall be treated as such as long as continuously held as collateral for such credit even though it ceases to be convertible or to carry warrants or rights. (4) In the event that any stock is substituted for a convertible security held as collateral for a credit extended under this sec­ tion the stock and any credit extended on it in compliance with this Part shall thereupon be treated as subje'ct to paragraph (c) 1 See § 207.2(d). 2 See § 207.2(0). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 207 of this section and not to this paragraph and the credit extended under this paragraph shall be reduced by an amount equal to the maximum loan value of the convertible security withdrawn less the maximum loan value of any convertible security de­ scribed in subparagraph (d) (1) deposited as collateral. (e) Statements as to purpose of credit.—In connection with any extension of credit secured directly or indirectly, in whole or in part, by collateral that includes any registered equity se­ curity, the lender shall, prior to such extension, obtain a state­ ment in conformity with the requirements of Federal Reserve Form G-3 executed by the customer and executed and accepted in good faith by the lender. The lender shall retain such state­ ment in his records for at least six years after such credit is extinguished. In determining whether credit is “purpose credit”, the lender may rely on the statement executed by the customer if accepted in good faith. To accept the customer’s statement in good faith, the lender must (1) be alert to the circumstances surrounding the credit and (2) if he has any information which would cause a prudent man not to accept the statement without inquiry, have investigated and be satisfied that the customer’s statement is truthful. Circumstances which could indicate that the lender has not exercised reasonable diligence in so acquaint­ ing himself and so investigating would include, but are not limited to, facts such as that (1) the proceeds of the credit were paid to a broker or to a bank in connection with contemporane­ ous delivery of registered equity securities, whether or not pay­ ment was made against delivery, (2) there were frequent substi­ tutions of registered equity securities serving as collateral for the credit, or (3) the amount of the credit was disproportionate, or the terms inappropriate, to the stated purpose. (f) Credit extended to person subject to Regulation T.— (1) No lender shall extend or maintain any credit for the purpose of purchasing or carrying any registered equity security to any person who is subject to Part 220 of this Chapter (Reg­ ulation T) without collateral or on collateral consisting of reg­ istered securities (other than exempted securities3). Where the credit is to be used in the ordinary course of business of such person, such credit is presumed to be for the purpose of pur­ chasing or carrying registered equity securities unless the lender has in his records statements obtained and executed in con­ formity with the requirements of paragraph (e) of this section. 3 As defined in 15 U.S.C. 78c (a) (12). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

208 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 (2) The prohibition of this paragraph (f) shall not apply to a credit which is unsecured or secured by collateral other than registered equity securities, and which is (i) made to a dealer (as defined in section 220.2(a) of Regulation T) to aid in the distribution of securities to customers not through the medium of a national securities exchange, or (ii) subordinated to the claims of general creditors by a subordination agreement ap­ proved by an appropriate committee of a national securities ex­ change or by a “satisfactory subordination agreement” as de­ fined in paragraph (e) (7) of Rule 240-15c3-l of the Securities and Exchange Commission. (g) Combining purpose credit extended to the same customer.— For the purpose of this Part, except for a credit subject to paragraph (d) of this section, the aggregate of all outstanding purpose credit extended to a person by a lender after February 1, 1968, shall be considered a single credit and, except as pro­ vided in paragraphs (d) and (0 of this section, all the col­ lateral securing such a credit, whether directly or indirectly, in whole or in part, shall be considered in determining whether the credit complies with this Part. (h) Purpose and nonpurpose credit extended to the same person.—No lender shall after February 1, 1968, extend or maintain or arrange for the extension of any purpose credit, or shall arrange for the maintenance of any purpose credit ex­ tended after February 1, 1968, if the credit is secured directly or indirectly, in whole or in part, by collateral that includes any registered equity security which also secures, directly or indirectly, in whole or in part, any other credit extended to the same customer; and no lender shall have outstanding at the same time to the same customer both purpose credit extended after February 1, 1968, and any other credit extended after February 1, 1968. (i) Purpose credit secured both by registered equity securi­ ties and by other collateral.—No lender shall after February 1, 1968, extend or maintain or arrange for the extension of any purpose credit, or shall arrange for the maintenance of any purpose credit extended after February 1, 1968, which is secured directly or indirectly, in whole or in part, by collateral that in­ cludes any registered equity security, unless at the time such credit was extended, the lender thereof obtained collateral con­ sisting of registered equity securities in an amount sufficient to meet the requirements of paragraph (c) of this section, and such credit was thereafter maintained in accordance with the re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 209 quirements of this Part, and where any such credit is so secured, no other collateral shall have any loan value in respect to such credit for the purposes of this Part. (j) Withdrawals and substitutions of collateral.— (1) General rule. Except as permitted by the next subparagraph and by section 207.4(a), while a lender maintains any purpose credit extended after February 1, 1968, the lender shall not at any time permit any withdrawal or substitution of collateral unless either (i) the credit would not exceed the maximum loan value of the col­ lateral after such withdrawal or substitution, or (ii) the credit is reduced by at least the amount by which the maximum loan value of any collateral deposited is less than the “retention requirement” of any collateral withdrawn. The retention re­ quirement of collateral other than registered equity securities is the same as its maximum loan value and the retention require­ ment of collateral consisting of registered equity securities or securities convertible into registered equity securities is pre­ scribed from time to time in section 207.5 (the Supplement to Regulation G). (2) Same-day substitution of collateral. Except as pro­ hibited by section 207.4(a) a lender may permit a substitution of registered equity securities effected by a purchase and sale on orders executed within the the same day: Provided, That (i) if the proceeds of the sale exceed the total cost of the purchase, the credit is reduced by at least an amount equal to the retention requirement in respect to the sale less the retention requirement in respect to the purchase, or (ii) if the total cost of the pur­ chase exceeds the proceeds of the sale, the credit may be increased by an amount no greater than the maximum loan value of the securities purchased less the maximum loan value of the securities sold. If the maximum loan value of the collateral securing the credit has become less than the amount of the credit, the amount of the credit may nonetheless be increased if there is provided additional collateral having maximum loan value at least equal to the amount of increase, or the credit is extended pursuant to section 207.4(a). SECTION 207.2—DEFINITIONS For the purpose of this Part, unless the context otherwise requires: (a) The term “person” means an individual, a corporation, a partnership, an association, a joint stock company, a business trust, or an unincorporated organization. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 (b) The term “in the ordinary course of his business” means occurring or reasonably expected to occur from time to time in the course of any activity of the lender for profit or the manage­ ment and preservation of property or in addition, in the case of a lender other than an individual, carrying out or in furtherance of any business purpose. (c) The “purpose” of a credit is determined by substance rather than form. (1) Credit which is for the purpose, whether immediate, incidental, or ultimate, of purchasing or carrying a registered equity security is “purpose credit”, despite any temporary ap­ plication of funds otherwise. (2) Credit to enable the customer to reduce or retire in­ debtedness which was originally incurred to purchase a reg­ istered equity security is for the purpose of “carrying” such a security. (3) Credit for the purpose of purchasing or carrying a security issued by an investment company registered pursuant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), whose assets customarily include registered equity secu­ rities, is for the purpose of purchasing or carrying such reg­ istered equity securities. (4) Credit for the purpose of purchasing or carrying any security convertible into a stock registered on a national securi­ ties exchange or any security carrying a warrant or right to subscribe to or purchase a stock registered on a national securi­ ties exchange is for the purpose of purchasing or carrying such registered equity securities. (d) The term “registered equity security” means any equity security4 which (1) is registered on a national securities ex­ change; or (2) has unlisted trading privileges on a national securities exchange, or (3) is exempted by the Securities and Exchange Commission from the operation of section 7 (c) (2) of the Securities Exchange Act of 1934 (15 U.S.C. 78g (c)(2)) only to the extent necessary to render lawful any direct or indi­ rect extension or maintenance of credit on such security; or (4) any security convertible with or without consideration into such registered equity security or carrying any warrant or right to subscribe to or purchase such registered equity security, or any such warrant or right. (e) (1) The term “purchase” includes any contract to buy, purchase, or otherwise acquire. 4 As defined in 15 U.S.C. 78c (a) (11). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 211 (2) The term “sale” includes any contract to sell or other­ wise dispose of. (/) The term “customer” includes any recipient of the credit to whom credit is extended directly or indirectly for the use of the customer, and also includes any person engaged in a joint venture, or as a member of a syndicate or a group, with the customer with respect to a purpose loan. (g) The term “indirectly secured” includes, except as provided in section 207.4(a)(3), any arrangement as to assets of the customer which (1) serves to protect the interests of the lender, (2) serves to make assets of the borrower more readily available to the lender than to other creditors of the borrower, or (3) under which the borrower surrenders the right to dispose of assets so long as the credit remains outstanding. SECTION 207.3—REPORTS AND RECORDS (a) Every person who is registered pursuant to section 207.1(a) of this Part shall within thirty (30) days following the end of each succeeding calendar quarter file a report on Federal Reserve Form G-4 with the Federal Reserve Bank of the district in which the principal office of the lender is located. (6) Every person who has registered pursuant to section 207.1(a) of this Part shall maintain such records as shall be prescribed by the Board of Governors of the Federal Reserve System to enable it to perform the functions conferred upon it by the Securities Exchange Act of 1934. (15 U.S.C. 78). SECTION 207.4—MISCELLANEOUS PROVISIONS (a) Stock option and employee stock purchase plans.—In re­ spect to any credit extended and maintained by a corporation or by a lender wholly controlled by such corporation (such cor­ porations and such lenders are both sometimes referred to as “plan-lenders”), to an officer or employee of the corporation or subsidiary thereof to finance the exercise of rights granted such officer or employee under a stock option plan or employee stock purchase plan adopted by the corporation and approved by a majority of its stockholders to purchase registered equity securi­ ties of such corporation or subsidiary, (1) Sections 207.1(c), (d), (f), (g), (h), and (i) of this Part shall not apply to any such credit extended to finance the exercise of such rights granted to any named officer or employee prior to February 1, 1968, and effectively exercised by such Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

212 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 officer or employee prior to February 1, 1969, nor to any credit extended, prior to February 1, 1969, to a plan-lender pursuant to a bona fide written commitment in existence on February 1, 1968, to finance the exercise of such rights; (2) The restrictions imposed by section 207.1(c) and (d) and section 207.5 (the Supplement to this Part) on the maximum loan value of registered equity securities serving as collateral for purpose credit shall not apply to securities purchased, and serv­ ing as direct or indirect collateral for credit extended, pursuant to such a plan, Provided, That: (i) The entire amount of credit extended to any officer or employee pursuant to this paragraph in connection with the exercise of rights under such plan or plans shall be considered a single credit; (ii) At the time when credit is extended under a plan sub­ ject to this paragraph, (A) the plan-lender computes the amount by which the credit exceeds the maximum loan value of the collateral as prescribed by section 207.5 (the Supple­ ment to Regulation G), (the “deficiency”), and (B) the agree­ ment under which the credit is extended provides that except as permitted by the proviso in subparagraph (iii) the officer or employee shall, in respect to such deficiency, make equal repayments to the plan-lender at least quarterly and equivalent to at least 20 per cent of such deficiency per annum, or such lesser amount as the Board of Governors, upon application, may permit, for at least three years from the extension of the credit; (iii) The officer or employee is not permitted under such plan or agreement to sell, withdraw, pledge, or otherwise dis­ pose of all or any part of such collateral until (A) all repay­ ments have been made for at least the three-year period pro­ vided in subparagraph (ii) and the deficiency has been repaid, or (B) the maximum loan value of the collateral, as prescribed by section 207.5 (the Supplement to Regulation G), is at least equal to the credit which remains owing from the officer or employee to the plan-lender, whichever shall occur first: Provided, That this restriction need not apply where such collateral is required to be sold to meet emergency expenses arising from circumstances not reasonably foreseeable at the time of the extension of the credit (for this purpose such emergency expenses shall include the death, disability, or involuntary termination of employment of the officer or employee or some other change in his circumstances, involving Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 213 extreme hardship, not reasonably foreseeable at the time the credit is extended. The opportunity to realize monetary gain is not a “change in his circumstances” for this purpose); and (iv) At such time as either of the conditions with respect to sale, withdrawal, pledge, or other disposition of collateral specified in subparagraph (iii) are satisfied, the credit is thereafter treated as a credit subject to all the requirements of this Part. (3) No extension of credit to a plan-lender to finance such a plan shall be deemed to be indirectly secured by a registered equity security purchased pursuant to the plan provided such security is not repledged by the plan-lender to secure such ex­ tension of credit to the plan-lender and the amount of the credit does not exceed the total amount of credit currently extended by such plan-lender pursuant to such plan. (b) List of securities.—In determining whether a security is a registered equity security or a security convertible into such security, or a security of the kind described in section 207.2(c)(3), a lender may rely upon the latest list of equity securities registered on a national securities exchange and securi­ ties of the kind described in section 207.2(c) (3) issued by the Board of Governors of the Federal Reserve System. (c) Extensions and renewals.—The renewal or extension of maturity of a credit need not be treated as the extension of a credit if the amount of the credit is not increased except by the addition of interest or service charges on the credit or of taxes on transactions in connection with the credit. (d) Reorganization or recapitalization.—Nothing in this Part shall be construed to prohibit withdrawal or substitution of se­ curities to enable a customer to participate in a reorganization or recapitalization. (e) Mistakes in good faith.—Failure to comply with this Part due to a mechanical mistake made in good faith in determining, recording, or calculating any credit, balance, market price or loan value, or other similar mechanical mistake, shall not con­ stitute a violation of this Part if promptly after discovery of the mistake the lender takes whatever action is practicable to remedy the noncompliance. (/) Acting as agent.—No person shall act as agent for any lender, bank, or creditor subject to Parts 207, 220, or 221 of this Chapter (Regulation G, T, or U) extending, maintaining, or ar­ ranging for any credit which the agent knows, or should know, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 is secured directly or indirectly by any registered security unless the agent obtains and accepts in good faith a statement signed by such lender, bank, or creditor that he does not extend or main­ tain credit to or for customers in violation of such Part. For this purpose such activities of an “agent” include, but are not limited to receiving securities to be used as collateral for such credit, determining whether the market value of the col­ lateral for such credit is adequate, and requiring the deposit of additional collateral or the reduction of such credit. In determining whether there has been an extension of credit subject to the provisions of Parts 207,220, or 221 of this Chapter, and whether he can rely in good faith on the statement de­ scribed herein, the person shall (1) be alert to the circumstances surrounding the credit and (2) if he has any information which would cause a prudent man not to accept the statement without inquiry, must have investigated’ and be satisfied that the credit either is not subject to such Part, or is extended and maintained in conformity with such Part. (g) Arranging for credit.—A lender may arrange for the ex­ tension or maintenance of credit by any person upon the same terms and conditions as those upon which the lender, under the provisions of this Part, may himself extend or maintain such credit, but only upon such terms and conditions, except that this limitation shall not apply with respect to the arranging by a lender for a bank subject to Part 221 of this Chapter (Regula­ tion U) to extend or maintain credit on registered securities or exempted securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 215 SUPPLEMENT TO REGULATION G SECTION 207.5—SUPPLEMENT Issued by the Board of Governors of the Federal Reserve System Effective March 11, 1968 (a) Maximum loan value of registered equity securities.—For the purpose of section 207.1, the maximum loan value of any registered equity security, except convertible securities subject to section 207.1(d), shall be 30 per cent of its current market value, as determined by any reasonable method. (b) Maximum loan value of convertible securities subject to section 207.1(d).—For the purpose of section 207.1, the maxi­ mum loan value of any security against which credit is extended pursuant to section 207.1 (d) shall be 50 per cent of its current market value, as determined by any reasonable method. (c) Retention requirement.—For the purpose of section 207.1, in the case of a loan which would exceed the maximum loan value of the collateral following a withdrawal of collateral, the “reten­ tion requirement” of a registered equity security and of a security against which credit is extended pursuant to section 207.1(d) shall be 70 per cent of its current market value, as determined by any reasonable method. LOANS TO EXECUTIVE OFFICERS The Board of Governors, effective March 15, 1968, revised Regulation O—Loans to Executive Officers of Member Banks— to conform the regulation to amendments made to section 22(g) of the Federal Reserve Act by the Act of July 3, 1967, and to re­ define the term “executive officer” so as to exclude those persons (other than non-officer directors) who do not participate or are not authorized to participate in the major policy-making func­ tions of a member bank and those whose decisions are strictly circumscribed by standards fixed by top management. As a re­ sult, many persons who have official titles and may exercise some discretion in the performance of their duties, including the mak­ ing of loans, will not be subject to the loan limitations of the law and the regulation. The text of the revised regulation reads as follows: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 REGULATION O (12 CFR 215) Revised effective March 15, 1968 LOANS TO EXECUTIVE OFFICERS OF MEMBER BANKS * SECTION 215.1—BASIS AND SCOPE This Part is issued pursuant to sections 11 (i) and 22(g) of the Federal Reserve Act, as amended (12 U.S.C. 248 (i) and 375a), and relates to extensions of credit by member banks to their executive officers and reports of such indebtedness. SECTION 215.2—DEFINITIONS (a) “Member bank”.—The term “member bank” means any banking institution that is a member of the Federal Reserve System. (6) “Executive officer”.—The term “executive officer” means every officer of a member bank who participates or has author­ ity to participate, otherwise than in the capacity of a director, in major policy-making functions of the bank, regardless of whether he has an official title or whether his title contains a designation of assistant and regardless of whether he is serving without salary or other compensation.1 The chairman of the board, the president, every vice president, the cashier, secretary, and treasurer of a member bank are assumed to be executive officers, unless, by resolution of the board of directors or by the bank’s bylaws, any such officer is excluded from participation in major policy-making functions, otherwise than in the capacity of a director of the bank, and he does not actually participate therein.2 (c) “Extension of credit” and “extend credit”.—The terms “extension of credit” and “extend credit” mean the making of a * The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 215; cited as 12 CFR 215. 1 The term is not intended to include persons who may have official titles and may exercise a certain measure of discretion in the performance of their duties, including discretion in the making of loans but who do not participate in the determination of major policies of the bank and whose decisions are circumscribed by policy standards fixed by the top manage­ ment of the bank. For example, the term would not include a manager or assistant manager of a branch of a bank unless he participates or is au­ thorized to participate in major policy-making functions. 2 Such resolutions may be particularly appropriate with respect to some officers of banks with a large number of vice presidents. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 217 loan or the extending- of credit in any manner whatsoever, and include: (1) any advance by means of an overdraft, cash item, or otherwise; (2) the acquisition by discount, purchase, exchange, or otherwise of any note, draft, bill of exchange, or other evidence of indebtedness upon which an executive officer may be liable as maker, drawer, endorser, guarantor, or surety; (3) the increase of an existing indebtedness, except on ac­ count of accrued interest or on account of taxes, insurance, or other expenses incidental to the existing indebtedness and advanced by the bank for its own protection; (4) any advance of unearned salary or other unearned compensation for periods in excess of 30 days; and (5) any other transaction as a result of which an execu­ tive officer becomes obligated to a bank, directly or indirectly by any means whatsoever, by reason of an endorsement on an obligation or otherwise, to pay money or its equivalent. Such terms, however, do not include: (i) advances against accrued salary or other accrued compensation, or for the purpose of providing for the pay­ ment of authorized travel or other expenses incurred or to be incurred on behalf of the bank; (ii) the acquisition by a bank of any check deposited in or delivered to the bank in the usual course of business unless it results in the carrying of a cash item for or the granting of an overdraft (other than an inadvertent over­ draft in a nominal amount that is promptly repaid) to an executive officer; (iii) the acquisition of any note, draft, bill of exchange, or other evidence of indebtedness, through a merger or con­ solidation of banks or a similar transaction by which a bank acquires assets and assumes liabilities of another bank or similar organization, or through foreclosure on collateral or similar proceeding for the protection of the bank; or (iv) indebtedness arising by reason of general arrange­ ments under which a bank (A) acquires charge or time credit accounts or (B) makes payments to or on behalf of participants in a bank credit card plan, check credit plan, or similar plan, except that this subdivision (iv) shall not apply to indebtedness of an executive officer to his own bank to the extent that the aggregate amount thereof exceeds Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 $1,000 or to any such indebtedness to his own bank that in­ volves prior individual clearance or approval by the bank other than for the purpose of determining whether his par­ ticipation in the arrangement is authorized or whether any dollar limit under the arrangement has been or would be exceeded. SECTION 215,3—GENERAL PROHIBITIONS (a) Extensions of credit to executive officers.—Except as pro­ vided in § 215.4, no member bank shall extend credit to any of its own executive officers and no executive officer of a member bank shall borrow from or otherwise become indebted to such bank. (b) Extensions of credit to partnerships.—Except as provided in subparagraph (3) of § 215.4(b), no member bank shall extend credit to a partnership in which one or more executive officers of such bank are partners having either individually or together a majority interest in the partnership and no such partnership shall borrow from or otherwise become indebted to such member bank. SECTION 215.4—EXCEPTIONS (a) Protection of member bank against loss.—This Part shall not apply to the endorsing or guaranteeing for the protection of a member bank of any loan or other asset previously acquired by such bank in good faith or to any indebtedness for the purpose of protecting a member bank against loss or of giving financial assistance to it. (b) Particular exceptions.—Subject to the requirements of § 215.5, the provisions of this Part shall not apply: (1) to any loan not exceeding $30,000 made by a member bank, with the specific prior approval of its board of directors, to any executive officer of such bank if, at the time the loan is made: (i) it is secured by a first lien on a dwelling which is owned, or after the making of the loan is to be owned, by the officer solely or jointly with his spouse and used by him as his residence; (ii) it is made for the purpose of purchasing, construct­ ing, maintaining, or improving such residence; and (iii) no other such loan by the bank to the officer is out­ standing; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 219 (2) to extensions of credit made by a member bank to any executive officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the executive officer; or (3) to extensions of credit made by a member bank to any executive officer of the bank which are not otherwise specific­ ally authorized under this paragraph (6), not exceeding the aggregate amount of $5,000 outstanding at any one time. For purposes of this subparagraph, the full amount of any exten­ sion of credit authorized hereunder that may be made to a partnership in which one or more of the member bank’s execu­ tive officers are partners and have either individually or to­ gether a majority interest shall be considered to have been extended to each executive officer of the bank who is a mem­ ber of the partnership. SECTION 215.5—REQUIREMENTS FOR EXTENSIONS OF CREDIT Every extension of credit to an executive officer: (a) shall be promtly reported to the board of directors of the bank;1 (6) shall be one that the bank is authorized to make to bor­ rowers other than its officers; (c) shall be on terms not more favorable than those afforded other borrowers with similar credit standing who are not asso­ ciated with the bank; (d) shall be preceded by submission of a detailed current financial statement of the borrowing officer, which shall include, but not be limited to, all data customarily associated with a per­ sonal financial statement including any obligations for which the officer may be personally liable; and (e) shall be made subject to the condition that it shall, at the option of the bank, become due and payable at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively described in subparagraphs (1), (2), and (3), of § 215.4(6), in an aggregate amount greater than the amount of credit of the same category that could be extended him by the bank of which he is an officer. 3 Prior approval by the board of directors of an extension of credit made under § 215.4(b) shall be regarded as compliance with this requirement. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 SECTION 215.6—REPORTS BY EXECUTIVE OFFICERS OF THEIR INDEBTEDNESS TO OTHER BANKS Any executive officer of a member bank who becomes indebted to any other bank or banks on or after July 3, 1967, on account of extensions of credit of any one of the three categories respec­ tively described in subparagraphs (1), (2), and (3) of § 215.4 (b), in an aggregate amount greater than the amount of credit of the same category that could lawfully be extended to him by the bank of which he is an executive officer, shall within 10 days make a written report to the board of directors of the member bank, identifying the lender and stating the date and amount of each such extension of credit, the security therefor, if any, and the purposes for which the proceeds have been or are to be used. SECTION 215.7—REPORTS OF MEMBER BANKS TO FEDERAL SUPERVISORS Each member bank shall include with (but not as part of) each report of condition and copy thereof filed pursuant to sec­ tion 7(a) (3) of the Federal Deposit Insurance Act (12 U.S.C. 1817(a) (3)) a report of all loans under authority of this Part made by the bank since the date of its previous report of condi­ tion. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 221 ORDER UNDER SECTION 2(g)(3) OF attaches where the transferor is a trust (as is the BANK HOLDING COMPANY ACT Foundation) and the transferee is one of its trustees. The Board of Governors issued the following On this basis, and because Mr. Shearn Moody, Order granting a determination that a corpora­ Jr., the proposed transferee of the Foundation’s tion has terminated ownership and control of interest in W. L. Moody & Co. Bank, is a trustee the stock of a bank: of the Foundation, the Board advised the Founda­ tion that, in the opinion of the Board, consum­ THE MOODY FOUNDATION, GALVESTON, TEXAS mation of the proposed transfer would not termi­ nate the Foundation’s ownership and control of In the matter of the request by The Moody its one-half interest in W. L. Moody & Co. or Foundation, Galveston, Texas, for a determina­ the Foundation’s bank holding company status, tion pursuant to section 2(g)(3) of the Bank unless the Board, after opportunity for hearing, Holding Company Act of 1956, as amended. made a determination of the kind described in section 2(g)(3). The Foundation has requested Order Granting Determination Under such a determination, and it has submitted to the Bank Holding Company Act Board documentary evidence to support its con­ tention that Mr. Shearn Moody, Jr. cannot in fact The Moody Foundation, Galveston, Texas, a be controlled by the Foundation. bank holding company within the meaning of section 2(a) of the Bank Holding Company Act Notice of an opportunity for hearing with re­ of 1956 (12 U.S.C. 1841(a)), on the basis of spect to the Foundation’s request for a determi­ ownership of (1) 49.6 per cent of the voting nation under section 2(g)(3) was published in shares of The Moody National Bank of Gal­ the Federal Register on Tuesday, December 19, veston, Galveston, Texas, and (2) a one-half part­ 1967 (32 F.R. 18126). The time provided for nership interest in W. L. Moody & Co. Bank, Gal­ requesting a hearing expired on January 8, 1968. veston, Texas, seeks to terminate said bank holding No such request has been received by the Board, company status by selling and transferring the nor has any evidence been received to show that Foundation’s interest in W. L. Moody & Co. the Foundation is in fact capable of controlling Bank to Mr. Shearn Moody, Jr. It is contem­ Mr. Shearn Moody, Jr. plated that Mr. Moody will also acquire the other It is hereby determined that The Moody one-half partnership interest and will thereby be­ Foundation is not in fact capable of controlling come the sole proprietor of W. L. Moody & Co. Mr. Shearn Moody, Jr. This determination is Bank. based upon the evidence of record in this matter, Under the provisions of section 2(g) (3) of the including (1) a copy of a Memorandum of Act (12 U.S.C. 1841(g)(3)), shares transferred Agreement executed October 23, 1967, between after January 1, 1966 by any bank holding com­ The Moody Foundation and The Moody National pany to a transferee that has one or more officers, Bank, Trustee, as Sellers and Shearn Moody, Jr., directors, trustees, or beneficiaries in common as Buyer, covering the sale of both one-half part­ with or subject to control by the transferor are nership interests in W. L. Moody & Co. Bank, deemed to be owned or controlled by the trans­ (2) an affidavit by Mr. Shearn Moody, Jr., dated feror unless the Board of Governors of the Fed­ December 6, 1967, (3) a certified copy of a eral Reserve System, after opportunity for hear­ resolution of the Board of Trustees of The Moody ing, determines that the transferor is not in fact Foundation adopted December 5, 1967, and (4) capable of controlling the transferee. The Board a certified copy of a resolution of the Trust Com­ has taken the position that a presumption of mittee of The Moody National Bank of Galveston control within the meaning of section 2(g)(3) adopted December 6, 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 Accordingly, It is ordered that The Moody thereon. The Comptroller recommended approval Foundation’s request for a determination pursuant of the application. Notice of receipt of the appli­ to section 2(g)(3) be and hereby is granted. cation was published in the Federal Register on Dated at Washington, D. C., this 16th day of September 19, 1967 (32 Federal Register 13241), January 1968. which provided an opportunity for interested By order of the Board of Governors, acting by persons to submit comments and views with re­ its General Counsel pursuant to delegated author­ spect to the proposed transaction. A copy of the ity (12 CFR 265.2). application was forwarded to the Department of Justice for its consideration. Within the time pro­ (Signed) Robert P. Forrestal, vided, “comments and views” were filed by the Assistant Secretary. Independent Bankers of Minnesota, urging denial [SEAL] of the application. Acting in its discretion, the Board ordered that ORDERS UNDER SECTION 3 OF an oral presentation of views be conducted before BANK HOLDING COMPANY ACT the Board, in order that the Independent Bankers of Minnesota would have an opportunity to fully The Board of Governors issued the following state and support its opposing views, and that Order and Statement approving an application by Applicant would have the opportunity to respond a bank holding company for acquisition of voting thereto. Notice of oral presentation was published shares of an additional bank. The Board also in the Federal Register (32 Federal Register issued the following Order and Statement affirm­ 16452), and, in accordance therewith, an oral ing an earlier Order denying an application for presentation was held at the Board’s offices on permission to become a bank holding company: December 6, 1967. Both parties were afforded full opportunity to support their positions by oral statement and documentary evidence, and were NORTHWEST BANCORPORATION, permitted an opportunity, following the oral pres­ MINNEAPOLIS, MINNESOTA entation, for the filing of briefs. In the matter of the application of Northwest Having considered all matters properly before Bancorporation, Minneapolis, Minnesota, for ap­ the Board in this proceeding, proval of acquisition of 85 per cent or more of It is hereby ordered, for the reasons set forth the voting shares of The First National Bank of in the Board’s Statement of this date, that said Ely, Ely, Minnesota. application be and hereby is approved, provided that the acquisition so approved shall not be con­ Order Approving Application Under summated (a) before the thirtieth calendar day Bank Holding Company Act following the date of this Order or (b) later than three months after the date of this Order unless There has come before the Board of Governors, such period is extended for good cause by the pursuant to section 3(a)(3) of the Bank Holding Board or by the Federal Reserve Bank of Minne­ Company Act of 1956 (12 U.S.C. 1842(a)(3)), apolis pursuant to delegated authority. and section 222.4(a)(2) of Federal Reserve Dated at Washington, D. C„ this 31st day of Regulation Y (12 CFR 222.4(a) (2)), an applica­ tion by Northwest Bancorporation, Minneapolis, January, 1968. Minnesota, for the Board’s prior approval of the By order of the Board of Governors. acquisition of 85 per cent or more of the out­ standing voting shares of The First National Bank Voting for this action: Chairman Martin, and Gover­ nors Robertson, Mitchell, Maisel, Brimmer, and Sher­ of Ely, Ely, Minnesota. rill. Absent and not voting: Governor Daane. In accordance with section 3(b) of the Act, (Signed) Robert P. Forrestal, the Board gave written notice of receipt of the Assistant Secretary. application to the Comptroller of the Currency and requested his views and recommendation [seal] Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 223 Statement an acquisition that would result in a monopoly or would be in furtherance of any combination Northwest Bancorporation, Minneapolis, Min­ or conspiracy to monopolize or to attempt to nesota (“Applicant”), a registered bank holding monopolize the business of banking in any part company, has applied to the Board of Governors, of the United States. Nor may the Board approve pursuant to section 3(a)(3) of the Bank Holding any other proposed acquisition the effect of Company Act of 1956 (12 U.S.C, 1842(a)(3)), which, in any section of the country, may be for prior approval of the acquisition of 85 per substantially to lessen competition, or to tend to cent or more of the voting shares of The First create a monopoly, or which in any other manner National Bank of Ely, Ely, Minnesota (“Ely would be in restraint of trade, unless the Board Bank”). ' finds that the anticompetitive effects of the pro­ Views and recommendation of supervisory au­ posed transaction are clearly outweighed in the thority. As required by section 3(b) of the Act, public interest by the probable effect of the trans­ the Board notified the Comptroller of the Cur­ action in meeting the convenience and needs of rency of receipt of the application and requested the community to be served. In each case the his views and recommendation thereon. The Board is required to take into consideration the Comptroller recommended approval of the appli­ financial and managerial resources and future cation. prospects of the bank holding company and the Oral presentation. On September 19, 1967, banks concerned, and the convenience and needs there was published in the Federal Register (32 of the community to be served. Federal Register 13241) a notice of receipt of Competitive effect of proposed transaction. the application by the Board. The notice provided Two of the 609 banking organizations in the that within 30 days of publication comments and State of Minnesota (First Bank Stock Corpora­ views on the proposed acquisition could be filed tion and Applicant) control 54 per cent of com­ with the Board. Opposition to the proposal was mercial bank deposits in the State.1 Applicant is filed on behalf of the Independent Bankers of slightly the smaller of the two organizations and Minnesota (“Independent Bankers”), accom­ controls 47 banks with total deposits of $1.6 panied by a request for a public hearing. billion, or 25 per cent of the total deposits in In view of the fact that the Comptroller of the State. the Currency did not recommend disapproval of Against this background of present concentra­ the application, no hearing on the application tion, any proposed acquisition by one of the was required by the Act, and no formal hearing largest organizations warrants careful considera­ was ordered by the Board. However, the Board tion of the effect which consummation of the found it appropriate in the public interest that proposal would have in further expanding the an opportunity be provided for the Independent size and scope of such organization, in addition Bankers to fully state and support its opposing to consideration of of the probable effect of the views, and for Applicant to respond thereto. proposal on competition in markets which pres­ Accordingly, the Board, acting in its discretion, ently are served or potentially could be served ordered that an oral presentation of views be by the organization’s subsidiary banks or by the conducted before the Board. Notice of the oral bank involved. presentation was published in the Federal Regis­ Ely Bank has deposits of $7 million, an amount ter (32 Federal Register 16452), and, in accord­ equal to less than .1 per cent of the total deposits ance therewith, an oral presentation was held at in the State. The proposed acquisition therefore the Board’s offices on December 6, 1967. Appli­ postures no significant effect on Applicant’s over­ cant and the Independent Bankers appeared and all size, either in absolute or relative terms. were afforded full opportunity to support their The town of Ely (population 7,000) is located positions by oral statement and documentary in the northern section of St. Louis County, Min­ evidence, and were permitted to file written briefs nesota, and represents the only concentration of following the oral presentation. Statutory considerations. Section 3(c) of the 1 As of June 30, 1967. All banking data are as of this Act provides that the Board shall not approve date unless otherwise noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 population in Superior National Forest, an area chief executive officer, a former employee of Ely of about 5,000 square miles extending along the Bank. These relationships are unlikely to be dis­ Canadian border. Ely is relatively isolated from turbed by the proposed change in ownership of other communities, the nearest towns being Bab­ Ely Bank. bitt, 18 miles to the south, and Tower, 22 miles The principal competitive issue posed at the to the southwest. It is approximately 115 miles oral presentation conducted by the Board centered north of the nearest major metropolitan center upon the choice of the relevant geographic area, and the county seat, Duluth, and lies almost mid­ or “section of the country” within which the com­ way between two principal arterial highways, one petitive effects of Applicant’s proposal should be about 65 miles to the east and the other about measured. It is the contention of the Independent 40 miles to the west. There is no major arterial Bankers that the relevant competitive area is the highway through the community, and public “Iron Range Area”, which includes, at a mini­ transportation service to and from Ely is rather mum, the entirety of St. Louis County, Minnesota. limited. The economy of the town is dependent on It is argued that the city of Duluth, 115 miles from mining, logging, forestry, and tourism. Ely Bank Ely, is the hub of banking activity in this area, is the only commercial bank in Ely, and 92 per and that, because of Applicant’s presently exten­ cent of its deposits of individuals, partnerships, sive commercial banking holdings in this area, and corporations (“IPC deposits”) and 83 per no further expansion through acquisition of area cent of its loans originate therein. banks should be permitted it. Applicant’s subsidiaries nearest to Ely Bank It is the Board’s conclusion, however, based are the First National Bank of Hoyt Lakes (de­ upon the geographic isolation of Ely, the rela­ posits of $3 million) and the State Bank of Vir­ tively small size of Ely Bank, and the very small ginia (deposits of $21 million), each located about percentage of its loans and deposits presently 50 miles from Ely. The Virginia subsidiary has originating outside of Ely, that the actual and less than $100 thousand of deposits that originate potential market area of Ely Bank is much more in Ely and the Hoyt Lakes subsidiary has none; limited than the area proposed by Independent neither derives meaningful loan business from Bankers as the relevant competitive area. Con­ Ely. Conversely, Ely Bank derives almost no busi­ ceivably, the bank’s trade area, which presently is ness from Hoyt Lakes or Virginia. Further, it limited to the area immediately surrounding the appears that the same locational factors which town of Ely, could be expanded to encompass serve to thus limit present competition between Tower and Babbitt. It is highly unlikely, however, Ely Bank and Applicant’s subsidiaries likewise that Ely Bank would ever be regarded as a con­ make improbable the development of significant venient alternative source of banking services by competition between them in the future. depositors or borrowers in areas served by any of It does not appear that the proposed acquisition Applicant’s present subsidiaries, or that its ac­ will have any significant immediate or prospective quisition by Applicant would have any significant effect on the competitive position of the bank in effect on Applicant’s competitive position in any Tower or the bank in Babbitt, each the only bank area in which Applicant’s subsidiaries presently in its community. A small amount of business, compete or are likely to compete in the future. principally time certificates of deposit, is derived In the Board’s judgment, consummation of Ap­ by each bank from the Ely area. Consummation plicant’s proposal would not result in a monopoly of Applicant’s proposal raises the possibility that or be in furtherance of any combination or con­ Ely Bank will compete more aggressively for such spiracy to monopolize the business of banking in business, particularly for time deposits. Ely Bank’s any part of the United States. Further, in spite rates on such deposits are not presently competi­ of the large share of Minnesota banking resources tive. Any increase in aggressiveness of Ely Bank, presently held by Applicant, it does not appear however, is unlikely to have any undue effect on the Babbitt Bank, which is a subsidiary of First reasonably probably that consummation of the Bank Stock Corporation, or on the Tower bank, instant proposal would substantially lessen com­ most of whose business originating in Ely appar­ petition or tend to create a monopoly, or that it ently results from relationships established by its would in any other manner be in restraint of trade. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 225 Financial and managerial resources and pros­ major expansion of services at present. However, pects. The financial condition, management, and there is evidence that the Ely Bank pursues a very prospects of Applicant and its present subsidiaries conservative loan policy, failing to meet many are regarded as satisfactory. reasonable loan requests from local individuals The Ely Bank is presently in sound financial and businesses. The Ely Bank’s gross loans range condition but needs additional experienced man­ generally from 40 to 45 per cent of total deposits. agement personnel. Illness has forced retirement Under Applicant’s control the bank will likely of the bank’s president from active management. accept the business now turned away and more The bank is presently subject to management by actively solicit new business, thereby contributing a committee of its board of directors. significantly to the convenience of the Ely com­ The Ely Bank’s president is also its majority munity. In addition, the prospective change in shareholder, and his present physical incapacity ownership offers the possibility of an adjustment has led to a desire to liquidate his interest. With a in Ely Bank’s time deposit rates toward more view toward protecting the bank’s minority share­ competitive levels. These considerations are con­ holders, he has stipulated that any prospective sistent with, and lend some weight toward, ap­ purchaser must be willing to extend an identical proval of the application. offer per share to all shareholders of the Ely Bank. Summary and conclusion. On the basis of all Though conversations were held with several po­ relevant facts contained in the record and in the tential buyers, only Applicant and First Bank light of the factors set forth in section 3(c) of Stock Corporation were willing to purchase every the Act, it is the Board’s judgment that the pro­ shareholder’s interest. It is possible that an indi­ posed transaction would be in the public interest cation of willingness to sell the controlling inter­ and that the application should be approved. est in the bank, without regard to the interests of minority shareholders, would have facilitated a BT NEW YORK CORPORATION, SUFFERN, NEW YORK sale to interests unrelated to either of the two large holding companies. However, the Board has re­ In the matter of the application of BT New cently had occasion to express its concern over York Corporation, Suffern, New York, for ap­ the effect which such a sale may have on the future proval of acquisition of 80 per cent or more of harmonious operations of the bank involved,2 and the voting shares of Liberty National Bank and therefore, in the absence of significant overriding Trust Company, Buffalo, New York. competitive considerations, does not view as ad­ verse to approval of the proposal the majority Order on Petitions for Reconsideration owner’s requirement that an offer to purchase be This matter comes before the Board of Gov­ extended to all stockholders of Ely Bank. ernors on petitions of BT New York Corporation, Applicant proposes to utilize its considerable Suffern, New York, and Liberty National Bank personnel resources to strengthen the bank’s man­ and Trust Company, Buffalo, New York, request­ agement, and it is believed the infusion of addi­ ing that the Board reconsider its Order dated tional experienced personnel will enhance the May 4, 1967, whereby the Board denied the ap­ bank’s future prospects. In addition, identical plication of BT New York Corporation, filed pur­ offers to majority and minority shareholders give suant to section 3(a) of the Bank Holding Com­ greater assurance that the bank’s future prospects pany Act of 1956, for prior approval of the ac­ will not be jeopardized by the disaffections of quisition of 80 per cent or more of the voting minority shareholders. These considerations lend shares of Liberty National Bank and Trust Com­ weight toward approval of the proposed acquisi­ pany. tion. A review of the material submitted in support Convenience and needs of the community in­ of the petitions reveals that it includes certain volved. The scope of services provided by the evidence and factual assertions not earlier pre­ Ely Bank is fairly broad, and Applicant plans no sented in support of the application. Although not wholly satisfied that good cause has been shown 2 Applications of The First National Bank of Tampa for the failure to include such evidence in the and Union Security & Investment Company, 53 Federal Reserve Bulletin 1567, 1570, (1967). application, the Board (Governor Sherrill absent Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

226 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 and not voting) finds it appropriate that reconsid­ date, they filed separate appeals from that de­ eration be granted, in order that the record may cision in the United States Court of Appeals in be supplemented thereby and a decision rendered the District of Columbia. The Court proceedings on the basis of all evidence which the Applicant have been suspended pending the Board’s decision views as supporting its application. on the requests for reconsideration. The Board has reviewed the entire record in this matter, including its Order of May 4, 1967, 1. Reconsideration its accompanying Statement of the same date, and Rule 262.2(f)(6) of the Board’s Rules of Pro­ the evidence, factual assertions, and arguments cedure which were in effect at the time of the submitted in support of the petitions for recon­ filing of the requests,3 provides that: sideration. “After action by the Board on an application, the It is hereby ordered, upon reconsideration Board will not grant any request for reconsideration and upon the entire record now before the Board, of its action, unless the request presents relevant for the reasons set forth in the Board’s Statement facts that, for good cause shown, were not previously presented to the Board, or unless it otherwise appears of this date, that the Board’s Order of May 4, to the Board that reconsideration would be appro­ 1967, be affirmed, and that said application be priate.” and hereby is denied. Both Petitioners have submitted extensive ma­ Dated at Washington, D. C., this 25th day of terial in support of their requests for reconsidera­ January, 1968. tion. Part of these presentations consists of new factual material not presently of record, which By order of the Board of Governors. the Petitioners view as providing additional sup­ Voting for this action: Chairman Martin and Gov­ port for assertions made in the application or as ernors Robertson, Mitchell, Daane, and Brimmer. contradicting findings or conclusions arrived at Not voting: Governor Maisel. Absent and not vot­ ing: Governor Sherrill. by the Board in its decision. Although Petitioners have not fully justified their failure to earlier (Signed) Robert P. Forrestal, present such material for consideration, the Board Assistant Secretary. has determined that it is appropriate and in the [seal] interest of justice to grant the requests for recon­ sideration in this matter, in order that Petitioners Statement might be assured of a decision on the application In an order dated May 4, 1967 (50 Federal which comprehends all facts believed by them to Reserve Bulletin 769), the Board denied the ap­ be relevant. plication of BT New York Corporation (Appli­ cant”) 1 for prior approval, pursuant to section 2. The Merits of the Application 3(a) of the Bank Holding Company Act, of the Statutory considerations. As in the case of acquisition of 80 per cent or more of the voting original consideration of an application, the shares of Liberty National Bank and Trust Com­ Board’s decision on reconsideration is governed pany, Buffalo, New York (“Liberty National”). by the provisions of section 3(c) of the Act, The Board’s decision was based on its finding which provides that the Board shall not approve that the probable anticompetitive effects of the an acquisition that would result in a monopoly proposed acquisition would be substantial and or would be in furtherance of any combination would not be clearly outweighed by any probable or conspiracy to monopolize or to attempt to effect of the transaction in meeting the conveni­ monopolize the business of banking in any part of ence and needs of the community to be served. the United States. Nor may the Board approve On June 2, 1967, Applicant and Liberty Na­ any other proposed acquisition, the effect of tional (hereinafter sometimes jointly referred to which, in any section of the country, may be as “Petitioners”) both formally requested that substantially to lessen competition, or to tend to the Board reconsider its decision. On the same create a monopoly, or which in any other manner r Effective September 15, 1967, Applicant’s name was 2 The same provision is contained in Rule 262.3(f)(6) changed to Bankers Trust New York Corporation. of the Board’s recently revised Rules. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 227 would be in restraint of trade, unless the Board portant businesses have recently announced ex­ finds that the anticompetitive effects of the trans­ pansion and modernization projects. The Down­ action are clearly outweighed in the public in­ town Redevelopment Project in Buffalo is well terest by the probable effect of the transaction in into the construction phase. All of these are among meeting the convenience and needs of the com­ the factors characterized by Liberty National as munity to be served. In each case, the Board is “indicating that the Niagara Frontier is about required to take into consideration the financial to break out of its stagnation and experience a and managerial resources and future prospects of major economic explosion.” " It is in this context the bank holding company and the banks con­ of a presently significant and even more promising cerned, and the convenience and needs of the economic market that the probable competitive ef­ community to be served. fects of Applicant’s proposal must be examined. Competitive effect of proposed transaction. Ap­ Commercial banking in the Buffalo area is plicant’s proposal would affiliate Liberty National, characterized by a very high degree of concen­ the third largest commercial bank in Buffalo ($341 tration, with 95 per cent of the area’s deposits million deposits) 3 with Applicant’s four present concentrated in its three largest banks. Neither subsidiary banks, Bankers Trust Company ($4.5 Applicant nor Liberty National deny the existence billion deposits; the sixth largest commercial bank of this high degree of concentration, but they do in New York City), First Trust Company of Al­ object to describing concentration in terms of the bany ($128 million deposits), First State Bank three largest banks (thus including Liberty Na­ of Spring Valley ($44 million deposits), and Fall­ tional), preferring to concentrate on the 50 per kill Bank and Trust Company, Poughkeepsie ($15 cent held by Marine Midland Trust Company of million deposits).' Western New York (“Marine”) and/or on the Liberty National’s primary service area consists 80 per cent combined shares of Marine and Man­ of Erie and Niagara Counties (hereinafter referred ufacturers and Traders Trust Company (“M&T”). to as the “Buffalo Metropolitan Area”), which Despite these protestations, however, it would lie in New York’s Ninth Banking District. The appear that there is a particular relevance to the City of Buffalo is the second largest in the State market share held by the three largest banks be­ and the Buffalo Metropolitan Area ranks second cause of Applicant’s claim that the acquisition among the seven metropolitan areas in the State will promote deconcentration through a redistri­ in population and employment, being nearly twice bution of this market share among the three banks. as populous as the next ranking area. The area is Since one of the principal claims of public benefit the Nation’s leading center for flour milling, an advanced for the acquisition is that it will aid important producer of animal feed, and a signifi­ Liberty National in expanding its market share at cant manufacturing center. In the recent past, the the expense of its two larger rivals, it is important economy of the area has been static. Presently, to note that Liberty National’s present market however, there are signs of a major economic share (15 per cent) is by no means of de minimus resurgence of the area. The completion of the proportions. Moreover, the maximum effect which St. Lawrence Seaway and the recently completed an equalization of the competitive capabilities of deepening of the Buffalo Harbor place Buffalo in the three leading banks could have on concentra­ a position to become a major commercial center. tion is to redistribute equally among the three Large expenditures have recently been made in banks the market share which they presently pos­ the area in the educational field and for scientific sess in combination." Such redistribution, however, research facilities. Many of the area’s most im- 3 Supplementary Data and Materials Submitted by Liberty National, page 5. 3 As ot June 30, 1966. All banking data are as of this 0 This fact, which would appear self-evident in any date, unless otherwise noted. There is no contention by event, is conceded by Liberty National, which states: Petitioners that any change in circumstances since the “No doubt it is true that granting the application would filing of the application requires use of more current data. not significantly change the overall concentration of * Now pending is a proposal to merge the last-named banking assets in the 9th District whether the reference bank (now Fallkill National Bank and Trust Company) be made to the top four or the top three. This concen­ with the $32 million State of New York National Bank, tration has remained approximately the same for many Kingston, with the resulting bank to be a subsidiary of years. What would happen, however, is that within the Applicant. newly opened area of competition, viz, that for national Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 would still leave each of them with a market ulatory inhibition upon new entry deriving from share of 31.7 per cent, an. amount in excess of the prohibition of inter-district branching in New that which the Supreme Court, in United States v. York. What this means, simply, is that the legal Philadelphia National Bank, 374 U.S. 321 (1963), and economic barriers to new entry are already found to be such “an undue percentage share of high. That being the case, it must be of regula­ the relevant market” that a merger which pro­ tory concern to preserve whatever incentive may duces a firm controlling such a share is inherently exist for entry on the part of those potential likely to lessen competition substantially and must competitors who possess both the legal and finan­ be enjoined in the absence of evidence clearly cial capacity to surmount the barriers. That con­ indicating that the merger is not likely to have cern dictates that entry through acquisition of such anti-competitive effects. Id at 363. Such a Liberty National be limited to those organizations market, therefore, can hardly be said to be a whose entry would otherwise be precluded, and competitive ideal, even if it be assumed, arguendo, denied to organizations whose potential for greater that it is preferable to the structure presently pre­ participation in the Buffalo market is not depend­ vailing in Buffalo. ent upon acquisition of Liberty National and whose It would seem, therefore, that the long range entry by that means would, by virtue of their pre­ goal of a supervisory agency concerned with im­ acquisition size, dominance, or activity, be likely proving the competitive climate of the Buffalo to raise the entry barriers for others still higher. market must be to preserve the opportunity and The Board views the proposed transaction as frus­ incentive for the development of other institutions, trating these objectives. First, Applicant’s entry into thereby reducing the aggregate market share of the Buffalo market through acquisition of Liberty the three leaders. Only insofar as the aggregate National would necessarily eliminate it as a poten­ share is reduced is it possible that any redistribu­ tial fourth competitor. And the significance of its tion of the aggregate will result in a market in potential is clear, since only a holding company, which no institution possesses what the Courts among existing potential competitors, is capable of have regarded as an undue or dominant market overcoming the legal barrier to entry and BT New share. York, as the State’s largest holding company, is Applicant’s proposal is not to be condemned clearly able to overcome the financial barriers to simply because it is not a cure-all for the competi­ entry. This therefore, is not simply a case where tive ills of Buffalo Banking. But its probable effect one of a score of possible competitors is seeking of inhibiting the development of other, more effica­ entry through acquisition rather than de novo,7 cious remedies must be regarded as a substantially but rather a case where the most able of a prob­ adverse long-range competitive effect. If a com­ ably very limited number is doing so by means of petitive market is to be attained, it seems obvious an acquisition which would eliminate the only that new and substantial competition must be route of entry available to smaller organizations. introduced into the Buffalo market. Ordinarily, More, it is doing so in an important market in the prospect of a substantial increase in the com­ mercial activity of the area, and the significance r This, it would appear, would answer Applicant’s con­ of the market to the economy of the State, would tention (Request for Reconsideration, page 11) that the be sufficient to assure its attractiveness to those Board’s decision “would render illusory the elaborate statutory mechanism for the approval of mergers and institutions which would benefit from their bank holding company acquisitions because the theoretical ability to serve the banking needs of the area. possibility of acquiring or organizing some other bank almost always exists.” It also serves to distinguish this Militating against the prospect of new entry into case from the recent United States District Court decision the market, however, is the size and dominance involving Crocker-Anglo National Bank. In that case, of Marine and, to a lesser extent, M & T and the Court, while sustaining the validity of a merger at­ tacked by the Justice Department on potential compe­ Liberty National. Also, of course, there is a reg­ tition grounds, noted that: “This is not a situation where there are only four (El Paso} or six (Penn-Olin) actual demand accounts, there would be substantial shifting of and potential competitors. In such cases the court might the competition away from the two leaders, simply be­ properly concern itself with effect of mergers in stifling cause of the increased effectiveness of Liberty as a com­ internal growth. In this case, however, there are more petitor with a formidable range of new services to be people knocking at the door than can possibly be ad­ offered to potential customers.” Liberty National Appli­ mitted.” United States v. Crocker-Anglo National Bank, cation for Reconsideration, page 30. — F. Supp. — (October 30, 1967). 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LAW DEPARTMENT 229 which concentration is already so high as to re­ cern over a single proposal which would tend quire extraordinary care in preserving potential toward that result." Obviously, however, statewide courses of deconcentration. “[I]f concentration is concentration can be spawned as surely by a already great, the importance of . . . preserving series of major acquisitions—each asserted to add the possibility of eventual deconcentration is cor­ but a small increment to existing concentration, respondingly great.” United States v. Philadelphia and each relying on prior approval of a similar National Bank, supra, at 365, n. 42. proposal as precedent—as it could be by approval Not only would consummation of the proposal of a single application incorporating the total ex­ eliminate Applicant as a potential fourth competi­ pansion plans of an applicant. The Board’s re­ tor, but it would also have the effect of reducing sponsibilities under the Act are not fulfilled by the likelihood that any other competitor might action calling a halt to further acquisitions by mar­ attempt entry. For, if the size and dominance ket leaders only when concentration has reached of Marine and M & T is a deterrent to new entry," the danger point. The Board is required to arrest the prospect of facing the competition of subsidi­ any significant trend in that direction. The proposal aries of both of New York State’s two largest hold­ by Applicant, already in control of two banks ing companies as well as M & T would be a much which are among the leaders in their respective greater deterrent. (While this deterrent arguably markets, to acquire the third largest bank in the would exist to some extent even if Applicant’s Buffalo area must be viewed in the light of that entry were de novo or by means of a smaller ac­ responsibility, as well as in the context of its im­ quisition, in that event Buffalo would at least be mediate effects in markets presently served by assured of the additional competition provided Applicant’s subsidiaries and by Liberty National. by such entry.) Not only is the acquisition of leading banks in Viewed as a part of the now-developing pat­ significant banking markets by an organization of tern of holding company expansion in the State Applicant’s size of concern because of its effect of New York, the present application has other in expanding the size of such organization, but serious implications. If an organization of Appli­ also because of its concurrent effect of eliminating cant’s size could lawfully acquire an institution of an institution which could instead serve as a the size of Liberty National in the most highly source of future competition for such organiza­ concentrated major banking market in the State, tions, either by remaining independent or by be­ it could by the same logic continue its expansion coming a participant in affiliation with one or more by acquisition of one of the largest institutions in other institutions. Much of the evidence submitted every other banking market, with the only inhibi­ by Petitioners in support of their requests for tion on expansion being that it could not acquire reconsideration is directed toward this point, their two major institutions in the same geographic contention being that Liberty National is not pres­ market. The ultimate result of permitting such ently, and cannot, without assistance of the scope expansion by the few large holding companies which affiliation with Applicant would provide, presently in existence in the State would be that become in the future a significant competitive within a very short time every significant banking factor in the Buffalo market. A fortiori, it is market in the State would be dominated by the argued, the bank is in no position to extend itself same few banking organizations. In a 1962 de­ beyond the limits of its present market by be­ cision denying an application to form a bank coming the lead bank or a significant participant holding company which would have affiliated a in a new holding company which would offer com­ large New York City bank with six of the largest petition to Applicant or other large banking or­ banks in various banking markets in upstate New ganizations in other markets. York, the Board had occasion to express its con- With respect to Liberty National’s present com­ petitive ability, the Board remains unconvinced s Supplementary Data and Materials Submitted by of the existence of any inherent inability of this Liberty National, page 24: “A New York bank, particu­ larly a smaller New York City bank, could not reach a reasonable business judgment to enter a market so domi­ » Application of Morgan New York State Corporation, nated by two banks with complete branch facilities and 48 Federal Reserve Bulletin 567 (1962). See also Appli­ services in all areas, particularly one in which the state­ cation of First Bancorporation of Florida, Inc., 48 Federal wide holding company is centered.” Reserve Bulletin 978 (1962). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 sizable institution to provide essential banking Banking District during the period 1961-1965 in services within its present service area, and rea­ the belief that such mergers would place the bank sonably beyond. This is not to say that its past in a position to offer more effective competition competitive efforts have met with unqualifled to its larger competitors. On the basis of a very success, that it presently offers promise of out­ limited and inconclusive experience since that stripping the growth of Marine and M & T, or time, the Board is asked, in effect, to find that even that it has succeeded in obtaining what it all such efforts have been in vain; that the large claims to be its share of the large account busi­ increase in deposits, in number of offices, and in ness. It is simply to say that Liberty National is the lending limit of Liberty National resulting presently capable of offering to customers in its from those efforts have completely failed to make market area, both large and small, an alternative it competitive; that a commercial bank now ap­ source of the essential banking services, in the proaching $400 million in deposits, with good same manner and to the same extent as other management and a reasonable earnings record, is banks of its size and smaller in banking markets incapable of competing for anything but “small throughout the country. The presence of Marine individual accounts and such occasional industrial and M&T in the Buffalo market may, it is true, or commercial accounts where friendship or con­ result in Liberty National’s competitive efforts venience outweighs the demand for multiple serv­ being less fruitful than if it were not faced with ices”;10 and that it therefore would be in the public the pattern of established customer relations which interest if the resources which Liberty National those institutions have developed. But that con­ accumulated with the announced intention of pro­ dition will persist only for so long as the public viding competition to a large holding company chooses the services of Marine and M&T rather were placed at the disposal of an even larger hold­ than those offered by Liberty National and does ing company. Nothing in the record before this not detract from Liberty National’s existence as Board compels such conclusions and its entire an alternative source of such services. As the supervisory experience informs it otherwise. Supreme Court stated in United States v. El Paso In attempted refutation of the Board’s finding Natural Gas Co., 376 U.S. 651, 661 (1964): that Liberty National is presently an able competi­ “Unsuccessful bidders are no less competitors tor and particularly of that portion of the Board’s than the successful one. The presence of two or earlier Statement which pointed to Liberty Na­ more suppliers gives buyers a choice.” tional’s opening of seven de novo offices since The fact that Buffalo area “buyers” of banking 1956 as indicative of its competitive efforts, Pe­ services, of the types offered by Liberty, choose, titioners direct the Board’s attention to the fact more often than not, to exercise their choice in that the bank, during the same period, was forced favor of Marine or M&T rather than Liberty to close three unprofitable branches. To the extent National does not justify the elimination of Lib­ that Petitioners underscore this fact in order to erty National’s present competitive status, particu­ indicate a lack of competitiveness on the part of larly in the absence of any indication that Liberty Liberty National, the Board rejects such a con­ National’s limited success is likely to have undue clusion. The closing of unsuccessful offices indi­ effect on its continued viability and effectiveness. cates only a realization of a lack of sufficient Liberty National has no more of a vested right to customer demand in those areas to justify their a constantly increasing share of the Buffalo mar­ existence; it does not detract from the point which ket than do Marine and M&T, and a conclusion the Board sought to make, namely, that where that it lacks competitive effectiveness cannot be such a demand was seen to exist Liberty National premised solely on its inability to substantially has endeavored to satisfy it and has had the increase its 15 per cent market share. Between financial and management resources to permit it year-end 1960 and year-end 1966, Liberty Na­ to do so. To the extent that the fact of the closing tional’s deposits increased from $161 million to of these offices is pointed to for the purpose of $376 million. Its growth efforts have met with denying any implication in the Board’s Statement considerable sympathy on the part of the super­ that Liberty National has reduced the competitive visory authorities, who approved the merger into 10 Supplementary Data and Materials Submitted by Liberty National of eight banks in the Ninth Liberty National, page 19. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 231 edge of Marine and M & T in branch office strength, consummation of the proposal unnecessary for the implication denied is not one which the Board the accomplishment of most of the beneficial re­ intended to be drawn in any case. The growth rec­ sults foreseen by Petitioners. Further, the antici­ ord of the two larger banks does not provide a pated expansion of the market argues even more yardstick against which to measure the competitive strongly against the present concentration of bank­ ability of Liberty National. In a large and expanding ing resources, which Applicant’s proposal would market in which there are few competitors, it is serve to perpetuate by making entry of new entirely predictable that all banks will flourish, and competitors more difficult and less likely. to the probable greatest advantage, in absolute Petitioners take issue with the Board’s failure terms, of the largest. But Liberty National’s present to follow the recommendation to the Board by the size and recent performance certainly provide no Comptroller of the Currency and the views re­ cause for pessimism concerning its future. Over the flected in the New York Superintendent of Banks’ last 10 years, the bank’s total deposits have increased recommendation to the New York State Banking by 138 per cent; the increase in its market share Board, both of which were favorable to the pro­ during that period was the greatest of any bank posal. Liberty National also argues that some sup­ in the Ninth Banking District. This increase in its port for its position may be implied from the fact size and consequent improvement in its competi­ that the Department of Justice did not submit an tive position obviously provides a foundation for adverse comment on the application to the Board. further expansion, even if it does not provide a The Board believes the latter argument to be basis for forecasting the amount of future growth disposed of by a letter which the Board has re­ likely to be accomplished.11 Further even if no ceived from the Department of Justice (copies of increase in Liberty National’s present market share which were sent by the Department to counsel occurs, the anticipated growth of the market which for Applicant and Liberty National), which takes it serves offers promise of good growth for the note of the argument which Liberty National has bank, and, as a corollary to such growth, and made and states that “no inferences as to the the increased demand of the market for banking Department’s views regarding the competitive ef­ services, an increase in its ability to provide serv­ fects of a holding company acquisition can be ices the profitability of which it now regards as drawn from the fact that the Department did not marginal or less. In the Board’s view, the antici­ submit to the Board comments or recommenda­ pated needs of the expanding Buffalo market fail tions prior to Board action. . . .” The Depart­ to provide support for Applicant’s proposal. ment’s letter concludes: “Moreover, as the Board Rather, such anticipation suggests opportunity for is aware, the Department shares the Board’s con­ natural growth of Liberty National, thus making cern with the possible effects of acquisitions of this kind on potential competition in banking n Petitioners contend that in using past growth as an markets.” The letter thus confirms the Board’s index of competitive ability or probable future growth, view that no inference favorable to the subject the portion of past growth attributable to mergers must proposal is to be drawn from the fact that the be discounted, because such growth is not attributable to the competitive ability of the bank and because the poten­ Department of Justice did not submit, prior to tial for further growth by that route is restricted by the Board action, a written statement of the Depart­ limited number of independent banks remaining in the ment’s views. Ninth District. While there may be limits on the implica­ tions that may be drawn from the fact of growth, the With regard to the opinions of the Comptroller effect of Liberty National’s total growth, regardless of of the Currency and the New York Superintend­ source, has been to substantially increase the competitive ability of the bank and therefore is highly relevant to ent, it is obviously appropriate for the Board to the issue of its present ability and future potential. Fur­ take such views into consideration in arriving at ther, even accepting Applicant’s assertion that Marine’s its decision on the merits of a holding company market share has increased by a greater amount than Liberty National's over the last 10 years, if growth by acquisition. Equally obvious, however, is the fact merger is discounted (.5 per cent increase in market that such views are to be weighed as part of the share for Marine, compared with a .1 per cent increase for Liberty National), the Board finds in those figures entire record, leading to a Board determination no justification for the proposed elimination of Liberty premised upon the exercise of its experienced National as an independent competitor and as a potential judgment. In making this determination, the rea­ source of increased competition on an even broader geographic scale. soning underlying the recommendations submit- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 ted is significant, particularly insofar as it en­ large New York City bank in a holding company affiliation brings just so much closer the unhealthy compasses those issues of particular concern to concentration of commercial bank assets and offices the Board. which the dispersion policy is designed to avoid, There is nothing in the analysis of either the particularly in view of the limited number of major unaffiliated banks remaining in the upstate area.” Comptroller or the New York Superintendent which alters in any way the conclusions expressed The Board is in agreement with the conclusions herein or in the Board’s earlier Statement. The thus expressed by the Superintendent and with recommendation of the Comptroller discusses the the expressed judgment that the factors discussed issue of potential competition only in the con­ are “significantly adverse” to the application. Nor text of the inter-district branching prohibitions in is there any disagreement with the facts stated New York State, without reference to possible in the succeeding paragraph of the Superintend­ alternative avenues of expansion available to Ap­ ent’s recommendation: plicant and Liberty National under the Bank Holding Company Act. Thus, the Comptroller’s “Liberty, however, is in a unique position upstate. It is the only bank over $300 million in asset size analysis, not treating with the implications that which ranks a poor third to two much larger com­ approval of the application would have as a petitors, one of which is the largest Marine Midland precedent for future holding company expansion bank upstate and one of which is the largest un­ affiliated bank upstate. The Ninth Banking District, in in the State, postures a recommendation which which Liberty is headquartered, is the most heavily does not take into account those aspects of Ap­ populated and most heavily industrialized of all the plicant’s proposal which are of greatest concern upstate Banking Districts, yet it has only two major banks offering medium to large business concerns a to the Board. full range of specialized banking services. It is, more­ With respect to the recommendation of the over, the only Banking District upstate where the two leading banking systems control so large a percentage New York Superintendent, there is a broad area of the District’s commercial bank assets and offices: of agreement with respect to the relevant issues 70.2% and 55.7%, respectively.” involved and even as to the resolution of those It is with respect to the implications to be drawn issues. The Board’s conclusions differ from those from the facts recited in the last-quoted portion reflected in the recommendation of the New York of the Superintendent’s recommendation, and in Superintendent to the State Banking Board, essen­ the weighing of any such implications favorable tially because of a difference in judgment as to to the application against the significantly adverse the relative weight to be assigned to considera­ factors found, that the Board’s judgment departs tions which are, on the one hand, favorable to from the views expressed by the Superintendent. the application and those which are, on the other It is the Superintendent’s view, as it is the Peti­ hand, adverse to it. This is best illustrated by tioners, that the present concentration of banking quoting at some length from the recommenda­ resources in the two largest Buffalo banks pro­ tion made by the New York Superintendent: vides justification for permitting the significantly “In the consideration of this application, there adverse effects found likely to result from Appli­ appear to be two significantly adverse factors: (i) cant’s proposal, in order to immediately provide Liberty’s size relative to the other independent banks locally “a third, meaningful bank alternative for upstate, and (ii) BT’s present ownership of First Trust Company of Albany. the medium to large commercial and industrial “With respect to the first of these adverse factors, concerns in the Ninth Banking District.” Liberty clearly has the potential to become either While recognizing that that view is not com­ the lead bank in a regional bank holding company, as Security Trust Company of Rochester has become, pletely without merit, it is the Board’s judgment or a participant with other banks among the thirteen that the cause of competition in the Buffalo mar­ in an upstate bank holding company, as the banks ket is better served by preserving the possibility in Lincoln First Group have done. “With respect to the second of these adverse fac­ that the market will, by virtue of its increasing tors, BT’s acquisition of a second major upstate bank attractiveness to potential entrants, evolve into would eliminate the possibility that Liberty in the a market in which no bank occupies a dominant future, either as an independent bank in an enlarged Banking District or as an affiliate in another holding position, than it would be by transforming Liberty company, become an active competitor of the four National, which already is a large institution, into BT banks, particularly First Trust Company of Al­ an arm of one of the nation’s largest banking bany and Bankers Trust Company. Furthermore, the acquisition of a second major upstate bank by any organizations, whose presence will operate to dis- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 233 courage such entry. Further, even aside from its ORDER UNDER SECTION 4(c)(8) OF disagreement with the proposition that Applicant’s BANK HOLDING COMPANY ACT proposal postures a competitive structure which would be significantly more desirable than that The Board of Governors issued the following Or­ presently existing in Buffalo, the Board is of the der, accompanied by the Hearing Examiner’s Re­ view that the claimed benefits to competition from port and Recommended Decision, approving the Applicant’s proposal fall far short of offsetting request by a bank holding company for deter­ the significantly adverse factors which the Board, minations that the planned activities of its pro­ in common with the New York Superintendent, posed nonbanking subsidiaries are not prohibited: finds inherent in Applicant’s proposal. DENVER U.S. BANCORPORATION, INC. For the reasons stated herein, the Board, on reconsideration and on the entire record now DENVER, COLORADO before it, reaffirms its earlier conclusion that the In the matter of the application of Denver U.S. effect of Applicant’s proposal, if consummated, Bancorporation, Inc., Denver, Colorado, pursuant may be to substantially lessen competition or to to section 4(c)(8) of the Bank Holding Company tend to create a monopoly in the Buffalo area, Act of 1956 for a determination re the proposed the Ninth Banking District of the State of New Lincoln Agency, Inc., and Fidelity National Life York, and other upstate areas. Insurance Company. Docket No. BHC-82. Convenience and needs of the area involved. On reconsideration and on the entire record now Order Granting Determination before it, the Board reaffirms the conclusions of its earlier Statement regarding this factor. The Denver U.S. Bancorporation, Inc., Denver, Col­ record as now constituted does not present any orado, a bank holding company within the mean­ considerations bearing on the convenience and ing of section 2(a) of the Bank Holding Com­ needs of the communities to be served of such pany Act of 1956 (12 U.S.C. 1841(a)), filed a significance as to clearly outweigh, in the Board’s request for a determination by the Board of Gov­ judgment, the substantial anticompetitive effects ernors of the Federal Reserve System that the likely to result from Liberty National’s acquisition activities planned to be undertaken by its pro­ by Applicant. posed subsidiaries, Lincoln Agency, Inc., and Financial and managerial resources and pros­ Fidelity National Life Insurance Company, are pects. On reconsideration and on the entire record of the kind described in section 4(c)(8) of now before it, the Board reaffirms its conclusions the Act (12 U.S.C. 1843(c)(8)) and section with respect to this factor, as reflected in its ear­ 222.5(b) of the Board’s Regulation Y (12 CFR lier Statement. Considerations bearing on this 222.5(b)) so as to make it unnecessary for the factor, while consistent with approval of the ap­ prohibitions of section 4(a) of the Act with re­ plication, provide little or no affirmative support spect to acquisition of shares in non-banking therefor. companies to apply in order to carry out the pur­ Conclusion. On the basis of all relevant facts poses of the Act. in the record as supplemented, and in the light of Pursuant to the requirements of section 4(c) (8) the factors set forth in section 3(c) of the Act, of the Act and in accordance with the provisions the Board, on reconsideration, reaffirms its judg­ of sections 222.5(b) and 222.7(a) of the Board’s ment that Applicant’s proposal may have the effect Regulation Y (12 CFR 222.5(b), 222.7(a)), a of substantially lessening competition or tending hearing was held on this matter on July 11, 1967. to create a monopoly, and that the probable anti­ On December 28, 1967, the Hearing Examiner competitive effects of the transaction are not filed his Report and Recommended Decision, a clearly outweighed in the public interest by any copy of which is appended hereto, wherein he probable effect of the transaction in meeting the recommended that the request be granted. The convenience and needs of the community to be time for filing exceptions to the aforesaid Report served. Accordingly, the Board affirms its judg­ and Recommended Decision has expired, and none ment originally expressed that the application has been filed. The Board hereby adopts the should be denied. findings of fact, conclusions of law, and recom- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 mendations embodied therein, and on the basis This matter was heard on July 11, 1967 by the thereof and of the entire record, undersigned, a duly designated Hearing Examiner It is hereby ordered, that the activities planned (Board Exhibit 3), pursuant to Notice of Re­ quest and Order for Hearing published in the to be undertaken by Lincoln Agency, Inc., and Federal Register on June 9, 1967.6 Fidelity National Life Insurance Company, all The following findings of fact and conclusions of which are of an insurance nature, are deter­ of law are based upon the evidence adduced at mined to be so closely related to the business of the hearing, both testimonial and documentary, banking or of managing or controlling banks as the Applicant’s proposed findings of fact and con­ to be a proper incident thereto and as to make it clusions of law and supporting brief, and the writ­ unnecessary for the prohibitions of section 4(a) ten comments of Board counsel on the Applicant’s of the Bank Holding Company Act to apply in proposed findings and conclusions: order to carry out the purposes of the Act; pro­ 1, Bancorporation is a registered bank holding vided, however, that this determination is subject company under the Act. Its banking subsidiaries to revocation if the facts upon which it is based are Denver United States National Bank, Denver, should change in any material respect. Colorado; Arapahoe Valley Bank (formerly Dated at Washington, D. C., this 1st day of Arapahoe Bank), Littleton, Colorado; First Bank February, 1968. of Aurora, Aurora, Colorado; the Mercantile Bank and Trust Company, Boulder, Colorado; and Weld By order of the Board of Governors, acting County Bank, Greeley, Colorado. Bancorporation by its General Counsel pursuant to delegated owns directly or through subsidiaries the real authority (12 CFR 265.2(b)(2)). estate occupied by most of its subsidiary banks. (Application, p. 2) Each of the banks is engaged (Signed) Robert P. Forrestal, in the general banking business. (Bancorporation’s Assistant Secretary. Annual Report for 1966, Exhibit M to the ap­ [seal] plication.) 2. The Bancorporation group of banks is the second largest in the State of Colorado, the largest Hearing Examiner’s Report and being the group of affiliates headed by The First Recommended Decision National Bank of Denver, Denver, Colorado. (Rec­ ord, p. 9) At December 31, 1966, the Bancor­ Denver U. S. Bancorporation (Applicant or poration banks had total deposits of $438,427,595 Bancorporation), a bank holding company under and total loans of $281,916,785. (Exhibit M to section 2(a) of the Bank Holding Company Act the application) Since that date Arapahoe Valley of 1956, as amended,1 seeks a determination by Bank acquired the assets and assumed the deposit the Board of Governors of the Federal Reserve liabilities of Valley National Bank, Littleton, Col­ System (Board) that the activities of its proposed orado. nonbanking subsidiaries, Lincoln Agency, Inc., 3. All banks require that borrowers maintain (Agency) and Fidelity National Life Insurance insurance for the bank’s benefit against the nor­ Company8 (Company) are of the kind described mal hazards on property which is mortgaged or in section 4(c)(8) of the Act3 and section pledged to the bank as collateral. Such collateral 222.5(b) of the Board’s Regulation Y 4 so as to includes, for example, automobiles, major ap­ make it unnecessary for the prohibitions of sec­ pliances, and buildings. Banks also require that tion 4(a) of the Act, with respect to nonbanking borrowers insure against their tort liabilities in companies, to apply in order to carry out the connection with automobile operations, and some­ purposes of the Act. times require key employees to be bonded. 1 12 U.S.C. 1841(a)(1966). 3 12 U.S.C. 1843(c)(8). 2 Name changed by First Amendment to Application from Western Fidelity Life Insurance Company to Fidel­ 4 12 CFR 222.5(b). ity National Life Insurance Company. s 32 F. R. 8324. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 235 4. Bancorporation’s Management believes that In the future, however, the Agency will probably its present practices in obtaining such insurance have a few full time employees of its own. The are unsatisfactory. At Arapahoe Valley Bank, an main office of the Agency will be located in the officer who holds an insurance agent’s license sells same quarters as the offices of Bancorporation, a very small amount of hazard insurance on prop­ and its other offices will be located in Bancor­ erty. Except at that bank, hazard insurance is poration’s affiliated banks. Directors and officers available only from outside sources. (Application, of the Agency will be directors and officers of pp. 2, 3; Record, pp. 11, 12) Therefore loan Bancorporation or its banking subsidiaries. At officers must continually check the files to make least one of the officers of the Agency will have sure that policies have been delivered, that they an insurance broker’s license issued by the State are in proper companies, in proper form, and of Colorado. This will probably be its manager, properly endorsed to the banks. This creates an who is now the insurance officer for Denver unnecessary drain on the officers’ time. Mistakes United States National Bank. The manager ap­ are inevitable and gaps in coverage result. An pears to be well qualified, being a chartered life adequate audit of the present system is not pos­ underwriter and a chartered property and casu­ sible because of the jumble of different policy alty underwriter. He plans to operate a training forms and companies to be examined and weighed. program for all the employees who will participate Finally, a substantial amount of commission in­ in writing policies, and to develop a manual of come which Bancorporation could be realizing is procedures and forms. (Record, pp. 12, 20) lost either to its own employees or to outside 7. Although banks generally require that bor­ agencies. (Application, pp. 3, 6; Record, pp. 12, rowers maintain insurance on collateral, using the 13) Agency’s services will not be made a condition of 5. For these reasons, Bancorporation proposes getting loans. The borrower will be free to en­ to organize and operate the Agency. The Agency dorse existing policies to the banks or to obtain will issue fire, theft, general casualty insurance and new policies from other sources. insurance against tort liabilities, to customers of 8. The ability to obtain the insurance at the Bancorporation’s subsidiary banks, chiefly in con­ bank’s own premises is obviously an added con­ nection with collateral mortgaged or pledged to venience for those who desire it, however. This the banks. It may also write some of the casualty practice also simplifies greatly the problem of the insurance, liability insurance, employees’ fidelity lending officer, since he is able to control the insurance, bankers’ blanket bonds and other types form of the policy, and thus can assure himself of insurance carried by Bancorporation and its that it is issued by a responsible carrier and subsidiaries. Under Bancorporation’s present plans, properly endorsed to the bank. Moreover, the however, it will not issue group credit life insur­ bank and its customer can obtain the policy im­ ance policies or certificates. The Agency is not mediately, without having to rely on the verbal intended to serve as an insurance agency for the binder of an outside agent. (Application, p. 7; general public, but only for Bancorporation and its Record pp. 18, 19) subsidiaries and their banking customers. Ban­ 9. There are additional advantages to the banks corporation does not plan to advertise the and their customers: Agency’s services to non-customers, or even to (a) Creation of the Agency will permit the advertise extensively among the customers of the Agent’s commission, which is usually from 15 to affiliated banks. (Application, p. 4; Record, pp. 25 per cent of the premium paid, to be retained 18, 20) within the Bancorporation system. Bancorpora­ 6. At the outset, all of the personnel of the tion’s costs of providing additional services to the Agency will be employees of Bancorporation or banks will thus be offset by retention of the com­ its affiliated banks. Bancorporation will pay its mission on all insurance written at the banks. employees and bill the Agency for its proportion­ (Application, p. 6; Record, p. 19) Bancorpora­ ate part of their salaries, rent and other expenses. tion anticipates a modest profit in the second or Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 third year. (Record, p. 21, Ex. K to the Applica­ the borrower’s earning power is cut off. Such tion) insurance may be provided by assigning an exist­ (b) There is a potential conflict of interest for ing life insurance policy or by providing a policy the loan officer who is permitted to keep insurance of credit life insurance through the lender. commissions. He may be tempted to insist on writ­ 13. The purpose of credit life insurance is to ing the coverage, and to restrict the customer’s protect both the borrower’s estate and the lending option of providing insurance obtained elsewhere. institution from loss in the event of the borrower’s Bancorporation’s plan appears to eliminate this death. Credit life is not written for an amount possible conflict. (Application, p. 6; Record, pp. which exceeds the amount of the loan, and the 13, 18, 19) amount of insurance in force declines exactly as (c) Central accounting and data processing the remaining balance of the loan declines. If the should provide current and accurate information insured dies before his obligation to the lending on all insurance in force, including expiration and institution has been paid, the balance due on the renewal data, and should prevent uncertainties obligation is paid to the bank as creditor-bene­ as to the existence of adequate coverage on col­ ficiary. Thus the esitate of the borrower is free lateral. (Application, p. 6; Record, p. 18) from liability for the obligation and any collateral 10. Although State banks in Colorado com­ held by the lending institution is released to the munities having a population greater than 7,500 estate. In this way, both the lender and the bor­ persons may not act as insurance agents, the rower are spared the expense and embarrassment sharing of premises and personnel by banks and incident to collecting the obligation from the insurance agencies and the ownership of an in­ estate. (Record, pp. 55, 56) surance agency by officers of shareholders of 14. While banks always permit borrowers to banks in such communities are not prohibited. assign existing policies as collateral for loans, that Such practices are considered legal by Colorado practice has the effect of decreasing his estate. It State insurance supervisory authorities and by the can be argued that policies purchased for the pur­ Federal and State banking supervisory authorities. pose of leaving the borrower’s family with spend­ Therefore Bancorporation, which is not a bank, able cash should be kept for that purposes. may lawfully form and own an insurance agency 15. Credit health and accident insurance is subsidiary in Colorado, if approval of the Board written for the actual amount of monthly install­ is obtained under the 1956 Act. (Application, pp. ments on the loan, except that it may not exceed 7, 8, 14, 15; Record, pp. 9, 10) stated maximum monthly amounts. Such insur­ 11. Bank-related insurance agencies are com­ ance is issued under riders which form part of mon in Colorado. Precise statistical data is not the group credit life policies. If the insured bor­ available, but a representative of the state bank rower becomes totally disabled, as defined in the supervisory agency has informally estimated that policy, the insurance company pays to the creditor more than 90% of the commercial banks in the amount of each monthly installment which Colorado are in some manner related to insurance becomes due during the period the disability con­ agencies. The arrangements vary from bank to tinues. Credit disability insurance does not usually bank. The most usual practice is for an employee require evidence of insurability, but liability for of the bank to hold an agent’s license and issue disabilities resulting from a pre-existing condition policies written by an agency corporation which is generally excluded. There is no exclusion for is owned by officers or shareholders of the bank. hazardous occupations. (Record, pp. 56, 57) Therefore organization of the Agency will not 16. Credit life insurance, health and accident confer upon Bancorporation any competitive ad­ insurance generally is not available except through vantage which is not available to owners of other lending institutions of agencies connected with Colorado banks. them. The outside insurance agent usually cannot 12. Banks generally require that some borrow­ make it available. (Record, p. 57) The kind of ers insure their lives for the benefit of banks. decreasing term life insurance available through Many other borrowers, who are not required to an ordinary agent generally cannot be tied closely do so, desire such insurance in order to protect to the amount of the loan outstanding at any their estates from having to pay the debt after particular time and such insurance is seldom Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 237 available in amounts small enough to make it (a) Four different credit life companies are feasible for use in connection with many install­ involved, each with slightly different policies and ment loans. Moreover, the amount of the com­ practices. There should be one best way of provid­ mission payable in connection with an installment ing credit life insurance to customers and em­ loan is usually too small to warrant the time of ployees of the subsidiary banks. a successful ordinary life agent. (Record pp. 57, (b) Only two of the five banks offer credit 58) health and accident insurance under group plans. 17. Practically all banks are now making credit An officer at a third bank offers individual dis­ life insurance available to their customers. A ability policies, but these are much less satisfac­ growing number of such institutions are also mak­ tory. A borrower without this kind of insurance ing credit disability insurance available. Most may be exposed to hardship if his health fails. banks do not issue policies, but certificates show­ (c) Current practices at some of the banks ing that the borrower’s life is insured under a result in a siphoning off of commission income group policy issued to the bank. This practice to bank employees. This is considered when their does not require an agent’s license under Colorado salaries are fixed, but is an inexact method for law. (Application, pp. 7, 8; Record, p. 10) The determining compensation. Since most employees competition between lending institutions in offer­ do not share in this income, it may contain the ing such insurance is great, as is the competition seeds of employee dissatisfaction. between companies underwriting credit life and (d) The insurance program in each of the five disability insurance. (Record, pp. 60, 61) affiliate banks is devised by its own loan officers, 18. In order to meet the administrative costs who are bankers, not insurance experts. Manage­ of providing a full line of credit life and credit ment thinks that a product of better quality can disability insurance, and in order to obtain a be produced by a full time expert, which Ban­ portion of the income produced by such business, corporation can afford to provide if it receives all many financial institutions, including banks, have the available commission income. Existing prac­ formed affiliated reinsurance companies to act tice does not provide enough cash flow to offset as reinsurers of the insurance written on loans the costs of the minimal programs now in effect. made by them. Such affiliated reinsurance com­ Bancorporation’s affiliated banks could probably panies have been established by some financial offer better service to their customers if their institutions which are quite small. Life insurance efforts in this field were better managed. (Record, companies actively assist in the organization of pp. 12, 13, 14) such companies, in order to obtain the credit 21. Based upon the experience of banks which life business. The advantages derived from such regularly offer credit life insurance in connection affiliated reinsurance companies can be obtained by with installment loans, Bancorporation estimates the owners of most banks and other financial in­ that as many as 75 per cent of the bank’s direct stitutions, regardless of size. (Record, pp. 60, 61) installment loan customers would purchase such 19. Practices at Bancorporation’s banks vary insurance if they were advised of its availability. considerably. Some offer only credit life; others Bancorporation also estimates that 60 to 70 per also offer credit health and accident insurance. cent of the installment loan customers would like At two of the banks, including the largest one, to acquire credit health and accident insurance if if the underwriting experience is favorable, a that too were made available on a regular basis. partial return premium is paid to the banks. At About 60 to 65 per cent of the consumer loans two others, commissions are paid to bank officers are acquired from dealers, and probably a lesser as additional compensation. At the other two, portion of the signers of paper which is acquired the commissions are paid to insurance agencies from dealers will want the insurance, but some owned by directors and officers of the banks. It will. Although there are no present plans for does not appear that any are making a vigorous dealers to issue credit life policies, the subsidiary effort to advise customers that the coverage is bank may solicit the customer by mail, after it available. (Application, pp. 8, 10; Record, p. 11) acquires the paper, at a time when the customer 20. Management considers that Bancorpora­ has in fact become a bank customer. A substantial tion’s present insurance practices are unsatisfac­ number of real estate borrowers might also pur­ tory for several reasons: chase such insurance. (Record, pp. 14, 15) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 22. At June 30, 1967, Bancorporation’s bank­ to customers and employees of affiliated banks, ing affiliates had $67,214,171 of consumer install­ not to the general public. ment loans of the kind on which credit life and Under this plan, each bank will issue certificates credit health and accident insurance is normally of coverage under a group insurance policy. The written. About 30 per cent of these loans were Company and American National will enter into insured. In addition, a small amount of this kind reinsurance treaties under which the Company of insurance is written on commercial loans, single will receive 80 to 85 per cent of the premiums payment loans, and real estate loans at Arapahoe paid for such insurance, while American National Valley Bank. (Record, pp. 11, 12, 15) If Ban­ will retain the balance of the premiums as a “ced­ corporation’s estimates are correct, it appears that ing commission.” American National will perform there may be some demand for credit life insur­ the administrative services in connection with the ance which is not being fully supplied by the operation of the Company, (Application, pp. 11, Bancorporation banks. 12; Record, pp. 16, 17, 53) * ’ 23. Exhibit P to the application shows the 25. The kinds of Ioan liabilities reinsured will premiums received by the affiliate banks for such include installment loans, single payment loans, kinds of insurance, the claims made and the losses mortgage loans, equipment loans and commercial paid during 1965 and 1966. The exhibit demon­ loans. No bank customer will, however, be re­ strates that if Bancorporation’s proposed reinsur­ quired to purchase such insurance through the ance subsidiary had been operating during that bank. In some cases the borrower may be re­ period, a substantial profit would have been real­ quired to provide a policy, but he can always ized. Therefore it does not appear that organiza­ give the bank an existing policy of his own or tion of the subsidiary is likely to weaken Ban­ acquire a conventional policy elsewhere. corporation finanically. 26. Under this plan, life coverage may be ob­ 24. Bancorporation proposes to organize the tained without an application or medical report Company under the laws of Arizona, whose in­ if the borrower is between the ages of 18 and 65, surance department has given preliminary ap­ if the loan does not exceed $5,000, and if the term proval to its proposed articles of incorporation and of the loan does not exceed 60 months. The group bylaws. (Exhibit 0 to the Application) The Com­ policy does not contain a suicide clause. Credit pany will be a limited capital stock life insurance life insurance can also be written on an individual company, that is, the amount it may reinsure is policy basis through a licensed agent of American limited by provisions of Arizona law. (Record, p. National in connection with loans from $5,000 to 15) The Company will be formed with an initial $125,000 but such insurance requires an applica­ capitalization in the amount of $37,500, repre­ tion, and, for the higher amounts, a medical re­ senting $25,000 in capital and $12,500 of surplus. port. (Record, pp. 56, 58) The premium rate to (Record, pp. 21, 58) This small capitalization does be charged for credit life insurance will be one not impose any risk on the bank’s customer, how­ per cent per year of the total contract of indebted­ ever, because his life will be directly insured by ness, which includes interest and other charges, American National Insurance Company of Gal­ and that an additional one percent per year of veston, Texas (which has assets exceeding $1,000,­ the total contract of indebtedness will be charged 000,000) and the policy creates a direct claim for credit disability coverage. (Record, p. 63). against American National. 27. Since the Company will act only as a rein­ Until Bancorporation has satisfied the Board, surer, and will not operate in Colorado, it will in such manner as the Board may approve, that not be necessary for the Company to become the Company has sufficient capital and experi­ licensed in any state except Arizona, where it will enced personnel to act as a direct insurer, the be incorporated. In order to avoid the substantial Company will act solely as a reinsurer of credit expense involved in securing the trained person­ life and disability policies issued by American Na­ nel needed to operate a life insurance company tional. The maximum amounts reinsured will be efficiently, Bancorporation has arranged for Amer­ $3,000 on any one life and $5,000 on any total ican National to operate the Company. American disability claim. American National will retain National appears to be qualified to conduct such amounts in excess of those figures, or reinsure operations. It presently operates approximately them elsewhere. The policies will be issued only 60 reinsurance companies which are affiliated with Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 239 banks and other kinds of lending institutions. should be met, as they have not been under pres­ American National has more than 9 billion dollars ent practice. (Application, p. 14; Record, p. 21) of insurance in force and assets exceeding 1 bil­ (e) In addition to increasing Bancorporation’s lion dollars. (Record, pp. 59, 60) income and, ultimately, that of its shareholders, 28. American National owns 50,000 shares of the increased use of credit life insurance and credit Bancorporation common stock. This is approxi­ health and accident insurance which can be ex­ mately two per cent of those outstanding. Ban­ pected from the program may well increase the corporation does not own any stock of American protection of the lending banks, thus improving National. (Record, p. 44) their loss experience, especially with respect to 29. The proposed officers and directors of the installment loans. (Application, p. 14; Record, Agency and five of the seven proposed officers pp. 16, 56) and directors of the Company are presently of­ 31. Organization and operation of the Agency ficers, directors or employees of Bancorporation. and the Company should not confer any com­ The two non-Bancorporation officers and directors petitive advantage upon Bancorporation and its proposed for the Company are at present in the affiliated banks. Bank-related insurance agencies employ of American National Insurance Com­ are common practice in Colorado. Group credit pany. (Exhibits D and H to the Application) life and credit health and accident coverage is 30. Management believes that formation and available to any bank desiring it, and the owners operation of the Company in the manner con­ of many banks, including some small ones, or­ templated by Bancorporation may reasonably be ganize affiliated reinsurance companies. Customers expected to result in certain direct benefits to the of Bancorporation’s affiliated banks will there­ customers of the affiliated banks and to Ban­ fore not be offered services which they cannot corporation. These include: obtain at other well-managed Colorado banks. (a) Credit life and credit health and accident Similarly, neither the Agency nor the Company insurance will be made more readily and promptly will afford Bancorporation a source of profit which available to more of the customers at the time is unavailable to the owners of any other Colorado when and place where the loans themselves are banks. (Application, p. 15; Record, pp. 22, 60, negotiated. Information concerning this kind of 61) " insurance and its availability can be more widely APPLICABLE STATUTE AND REGULATION disseminated among the customers, and a greater Bank Holding Company Act of 1956, as amended. portion can be expected to buy it. (Application, Section 4(a): Except as otherwise provided in p. 14; Record, pp. 15, 18) this Act, no bank holding company shall— (b) Insurance protection can be offered with (1) ... acquire direct or indirect ownership or control of any voting shares of any company which respect to a greater number and wider variety of is not a bank, . . . loans. The insurance itself should be more ad­ (c) The prohibitions in this section shall not apply vantageous to the customers than ordinary life to ... (8) shares of any company all the activities of which are or are to be of a financial, fiduciary, or term insurance, since group credit life and or insurance nature and which the Board after due group credit disability insurance are tailormade notice and hearing, and on the basis of the record made at such hearing, by order has determined to for the purposes they serve. Bancorporation will be so closely related to the business of banking or acquire a greater measure of control over rates of managing or controlling banks as to be a proper and terms. (Application, p. 14; Record, pp. 15, 16, incident thereto and as to make it unnecessary for the prohibitions of this section to apply in order to 17, 18, 55, 56, 57, 58) carry out the purposes of this Act; (c) Income developed through the program Regulation Y (1960), Section 222.5(b): and retained by Bancorporation should enable Shares of financial, fiduciary, or insurance companies. Bancorporation to assist its subsidiary banks in —Any bank holding company which is of the opin­ providing better service, a better product, and ion that a company all the activities of which are of a financial, fiduciary, or insurance nature is so closely more expert advice. (Application, p. 14; Record, related to the business of banking or of managing PP. 16, 17) ' or controlling banks, as conducted by such bank (d) An underwriting profit is anticipated from holding company or its banking subsidiaries, as to be a proper incident thereto and as to make it the Company’s operations. In this way, the costs unnecessary for the prohibitions of section 4 of the of administering an improved insurance program act to apply in order to carry out the purposes of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 the Act, may request the Board for such a determina­ Applicant’s subsidiary banks. The insurance to tion pursuant to section 4(c)(6) (now 4(c)(8)) of be issued as agent for one or more insurance com­ the act. Any such request shall be filed in duplicate with the Federal Reserve Bank. After receipt of any panies on collateral given to secure the repay­ such request, the Board will notify the bank holding ment of loans made by affiliated banks will in­ company of the place and time fixed for a hearing clude fire, automobile and hazard insurance. It on the requested determination; and, after the con­ clusion of such hearing and on the basis of the will not hold itself out or serve as an insurance record made at the hearing, the Board will by order agency for the general public. The Board has con­ make or decline to make the requested determination. sistently held that such activities satisfy the require­ DISCUSSION ments of section 4(c)(8) of the Act.7 It is equally clear that the proposed activities Section 4(a) of the Act prohibits a bank hold­ of Fidelity National Life Insurance Company also ing company from acquiring, either directly or satisfy the criteria of section 4(c)(8) of the Act indirectly, ownership or control of any voting under prior determinations of the Board. As de­ shares of any company which is not a bank. Ex­ scribed in the second amendment to the applica­ cepted from this prohibition by section 4(c)(8) tion, the Company will reinsure the first $3,000 are “shares of any company all the activities of and $5,000, respectively, of credit life insurance which are or are to be of a financial, fidiciary, or and credit disability insurance covering borrowers insurance nature if the Board determines after of applicant’s subsidiary banks under group poli­ hearing and on the record such activities “to be cies issued by American National Insurance Com­ so closely related to the business of banks or of pany. managing or controlling banks as to be a proper Apart from the reinsurance feature, the pro­ incident thereto.” posed activities of the Company, for purposes The potential dangers envisaged in permitting of section 4(c)(8) of the Act, are generally in­ bank holding companies to own or control shares distinguishable from the activities proposed and in companies whose activities are unrelated to found acceptable by the Board in First Oklahoma banking were briefly outlined by the Senate Com­ Bancorporation, 51 F. R. Bulletin 676 (1965), mittee on Banking and Currency in Senate Report and The First Virginia Corporation, 53 F. R. No. 1095, 84th Congress, 2nd Session as follows; Bulletin 373 (1967). In both of these cases, Your committee holds the opinion that bank holding the Board held that a nonbanking subsidiary may companies should confine their activities to the con­ properly act as a direct insurer. If a nonbanking trol and management of banks and activities closely related to banking. They should not combine man­ subsidiary may insure directly, it follows it may agement and control of banking activities with man­ insure indirectly. The difference is simply one agement and control of nonbanking activities. The of form and not substance for purposes of sec­ divestment requirements in this bill are designed to remove the danger that a bank holding company tion 4(c)(8) of the Act, since the nature and might misuse or abuse the resources of a bank it quality of the activity is essentially the same in controls in order to gain an advantage in the opera­ either case.’1 This is not to say that the Company tion of the nonbanking activities it controls. may lawfully expand its activities to include the No such danger was seen, however, in permitting writing of insurance for borrowers from its af­ holding companies to retain ownership or control filiated banks without a prior determination by the of shares in nonbanking insurance agencies and Board under section 4(c)(8) allowing the ad­ insurance companies all of whose activities relate dition of that activity. to, and could be said to be a proper incident of, Although the proposed Agency and Company the banking business. will be empowered by their respective charters to For example, the operation of a credit-life insurance program in connection with bank loans is clearly 6 Senate Report No. 1092, supra, at p. 13. within the scope of banking operations as presently ’ See First Oklahoma Bancorporation, 51 F. R. Bulle­ conducted. So is the operation of an insurance pro­ tin 676 (1965) and cases cited under Footnote 8. gram under which the insurance proceeds retire the 8 One disturbing element of the reinsurance feature in outstanding balance of the mortgage upon the death this case is that American National will operate the Com­ of the mortgagor in cases where the bank holds the pany, thus giving a nonbanking company operational mortgage.6 control of a nonbanking subsidiary. This factor combined with its ownership interest in Bancorporation stock of The Lincoln Agency, Inc., will be operated as 50,000 shares suggests violence to the spirit if not the an insurance agency and serve only borrowers of letter of sections 4(a) and 4(c)(8) of the Act. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 241 engage in a general life insurance business, the surance Company, proposed nonbanking subsid­ applicant has given its assurance that the Agency iaries of Denver U.S. Bancorporation, are so and Company will deal only with borrowers from closely related to the business of banking or of its subsidiary banks to insure the repayment of managing or controlling banks as to be a proper their outstanding loans. A similar assurance was incident thereto and as to make it unnecessary accepted by the Board in First Oklahoma Ban­ for the prohibitions of section 4(a) of the Bank corporation and The First Virginia Corporation Holding Act of 1956, as amended, to apply in and may be accepted here. As was stated in the order to carry out the purposes of the Act. latter case— If the Applicant, through its proposed subsidiar(ies), RECOMMENDATION should conduct a general life insurance business, or It is recommended that the Board of Governors even should it pursue the sale of credit life, health and accident insurance as an end in itself, or as a of the Federal Reserve System: routine requirement for the use of money, the Board 1. Enter an order determining the issues in this has adequate authority under section 222.5(b) of proceeding in accordance with the above Findings Regulation Y, which directs that insurance activities be in fact conducted in accordance with the criteria of Fact and Conclusion of Law, and of section 4(c)(8) of the Act, to require divestiture. 2. Grant the request of Denver U.S. Bancor­ Thus, the caveat implicit in section 222.5(b) of poration for an order pursuant to section 4(c)(8) Regulation Y should serve to deter any insurance activity not in accord with the purposes of the Act. of the Bank Holding Company Act of 1956, as amended. CONCLUSIONS OF LAW (Signed) Philip J. La Macchia, For the foregoing reasons, it is concluded that Hearing Examiner. the insurance activities to be conducted by Lin­ Washington, D. C. coln Agency, Inc., and Fidelity National Life In­ December 28, 1967 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements REAPPOINTMENT OF WILLIAM W. SHERRILL AS A APPOINTMENT OF DIRECTOR MEMBER OF THE BOARD The Board of Governors of the Federal Reserve Mr. William W. Sherrill, a Member of the Board System announced the appointment effective Feb­ of Governors of the Federal Reserve System since ruary 15, 1968, of Mr. John M. Fox of Boston, May 1967, was nominated by the President for re­ Massachusetts, as a Class C director of the Federal appointment to the Board for a term of 14 years Reserve Bank of Boston for the unexpired portion of a term ending December 31, 1970. Mr. Fox is beginning February 1, 1968. The nomination was Chairman of the Board, United Fruit Company, confirmed by the Senate on January 23, 1968, and Boston, Massachusetts. As a director of the Boston Mr. Sherrill took the oath of office on January 31, Bank he succeeds Erwin D. Canham, Editor in 1968. Chief, The Christian Science Monitor, Boston, Massachusetts, whose term expired December 31, CHANGES IN THE BOARD’S STAFF 1967. The Board announced the appointment of Charles C. Walcutt as an Assistant Director in the Division CAPACITY UTILIZATION IN MANUFACTURING of Examinations, effective February 1, 1968. Since The quarterly index of capacity utilization has been joining the Board’s staff in November, 1966, Mr. added to the table of Selected Business Indexes. Walcutt has been serving as the Assistant Chief This table appears regularly on page A-56 in the Federal Reserve Examiner. Financial and Business Statistics section of each James C. Smith, Assistant Director, Division of Bulletin. Examinations, and M. B. Daniels, Assistant Di­ For a description of the index see the Bulletins rector, Division of Bank Operations, retired from for November 1966, p. 1605, and July 1967, the staff effective February 1, 1968. p. 1096. 242 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication February 15 Industrial production decreased somewhat in Janu­ Iron and steel production declined in January but ary and the average workweek in manufacturing in early February raw steel output increased. In declined. Nonfarm employment rose slightly and January, output of most other durable and nondu­ the unemployment rate fell. Retail sales reached a rable industrial materials declined. new high. Prices of industrial commodities contin­ ued upward. Commercial bank credit and the EMPLOYMENT money supply increased. Time and savings deposits Nonfarm payroll employment rose slightly in Jan­ declined slightly. Between mid-January and mid­ uary, following three months of marked increases. February, yields on U.S. Government securities in­ Strong gains continued in trade, services, and State creased and those on corporate and municipal and local government. Construction employment, bonds declined on balance. however, dropped sharply, following a marked rise at the year end. Manufacturing employment rose INDUSTRIAL PRODUCTION by 43,000, with about two-fifths of the increase Industrial production was 161.2 per cent of the due to the return to work of strikers. The average 1957-59 average in January as compared with workweek in manufacturing declined by 0.3 hours 161.8 in December and 158.2 a year earlier. De­ to 40.5 in January and was 0.5 hours below a year clines in output were mainly in consumer durable earlier. The unemployment rate fell by 0.2 per­ goods and industrial materials. centage points to 3.5 per cent, as the decline in the Auto assemblies, limited partly by work stop­ number of adult women in the labor force was con­ pages, decreased 7 per cent to an annual rate of siderably greater than usual. 8.3 million units. Production of television sets was maintained but output of home radios was DISTRIBUTION curtailed sharply. Output of business equipment The value of retail sales rose 3 per cent in January, changed little, as some further decline in industrial according to advance Census estimates. Sales at du­ machinery was about offset by a recovery in output rable goods stores increased, reflecting largely a of farm equipment, following a strike settlement. sharp rise in auto sales late in the month, which was followed by a decline in early February. Sales at nondurable goods stores also rose, with most lines contributing to the increase. COMMODITY PRICES The wholesale commodity price index increased by an estimated 0.3 per cent in January, as prices of farm products and foods as well as those of in­ dustrial commodities increased further. From July to early January, industrial prices rose at an annual rate of 3.2 per cent, and in recent weeks the rise has apparently continued as price increases have been effected for a variety of industrial materials and products. Prices of farm products and foods, which rose sharply in December and then slightly further in early January, appear to have increased seasonally since then. 243 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN □ FEBRUARY 1968 BANK CREDIT, DEPOSITS, AND RESERVES member bank borrowings averaged $275 million, up from $185 million, excess reserves also in­ Commercial bank credit increased rapidly in Janu­ creased. Total and required reserves rose substan­ ary, following relatively moderate growth over tially, after declining in December. other recent months. Substantial expansion in total loans and in holdings of municipal and agency SECURITY MARKETS securities was offset only in small part by further reductions in holdings of Treasury issues. Business Treasury bill rates fluctuated considerably between loan growth moderated considerably from the mid-January and mid-February, with the longer rapid December pace. maturities rising slightly on balance. The 3-month The money supply increased $1.2 billion in Jan­ bill was bid at around 5.0 per cent in the middle of uary, much faster than over the November-Decem­ February. Yields on U.S. Government securities ber period. U.S. Government deposits also rose. increased over the same period. Time and savings deposits declined slightly on av­ Yields on seasoned corporate and municipal erage in January following slackening growth in bonds declined during the latter half of January, late 1967. In the latter part of the month, however, but the former leveled off and the latter turned up expansion resumed at a moderate rate. Free reserves averaged about $140 million over somewhat during the first half of February. Com­ the five weeks ending January 31, little different mon stock prices and trading volume declined from the average of the previous four weeks. While steadily over the entire period. INTEREST RATES 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 Feb. 2. 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, Federal Reserve Bank credit, and related items A-8 Federal funds—Major reserve city banks A-9 Reserve Bank discount rates A-10 Reserve requirements A-10 Maximum interest rates A-10 Margin requirements A-ll Bank deposits A-ll Open market transactions A-12 Federal Reserve Banks A-14 Bank debits and deposit turnover A-15 Currency in circulation A-16 Money supply and bank reserves A-17 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 of banks A-28 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-39 Security issues A-42 Business finance A—44 Real estate 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 □ FEBRUARY 1968 U.S. STATISTICS—Continued A-48 Consumer credit A-52 Industrial production A-56 Business activity A-56 Construction A-58 Labor force, employment, and earnings A-60 Consumer prices A-60 Wholesale prices A-62 National product and income A-64 Flow of funds (flows through Q III 1967; assets and liabilities through 1966) 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 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 SPECIAL TABLES (other than flow of funds): A-88 Earnings and expenses of Federal Reserve Banks, 1967 Number of banking offices: A-90 Analysis of changes A-91 On, and not on, Federal Reserve Par List A-98 INDEX TO STATISTICAL TABLES Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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, n, L Liabilities III, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par­ S.A. Monthly (or quarterly) figures adjusted 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 A nnually—Continued Issue Page Flow of funds....................................... Feb. 1968 A-64 Banking and monetary statistics, 1966 Mar. 1967 456-70 July 1967 1236-39 Banks and branches, number, by Semiannually class and State.................................. Apr. 1967 658-59 Banking offices: Analysis of changes in number of.,. Feb. 1968 A-90 Flow of funds (assets and liabilities). .. Feb. 1968 A-65.10 On, and not on, Federal Reserve Par List, number........................... Feb. 1968 A-91 Income and expenses: Federal Reserve Banks..................... Feb. 1968 A-88 Member banks: Annually Calendar year................................ May 1967 862-70 Operating ratios............................ Apr. 1967 660-62 Bank holding companies: Insured commercial banks............... Sept. 1967 1646 Liat 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-4 BANK RESERVES AND RELATED ITEMS □ FEBRUARY 1968 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other P d e o a ri r t o e d U.S. Govt, securities1 Dis­ Gold T r c e r u u e n r r c a y ­ y s ­ r C e i n u n c r y ­ T c r u a e r s a y h s ­ t w ha it n h m r F e . e s R e m r . v b e B e s r a , n b k a s nk O F. t R he . r Me r m es b e e rv r e b s ank Total B r o o ig u u h g t­ t ht R m c a e h g e p a r n e s u t e e s r ­ ­ c v o a a a n n u d c d n ­ e t s s Float 2 t T al o ­ 3 stock s o t i a n u n g t d ­ ­ c t c i u i o l r n a ­ ­ h in o g ld s ­ T u re ry as­ F ei o g r n ­ Other2 co a u c n ­ ts B W F a . n R it k h . s c r C o a en n i u n c d r y ­ 4 Total Averages of daily figures 1929—June..... 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 ......... 2,314 1933—June....... 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 64 350 2,211 2,211 1939—Dec......... 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—Dec......... 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1,531 292 12,812 12,812 1945—Dec......... 23,708 23,708 381 652 24,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16,027 1950—Dec......... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1957—Dec......... 23,982 23,615 367 716 1,44326,186 22,769 5,144 31,932 768 385 345 186 1,063 19,420 19,420 1958—Dec......... 26,312 26,216 96 564 1,49628,412 20,563 5,230 32,371 691 470 262 337 1 J74 18,899 18,899 1959—Dec......... 27,036 26,993 43 911 1,42629,435 19,482 5,311 32,775 396 524 361 348 1,195 18,628 304 18,932 1960—Dec......... 27,248 27,170 78 94 1,665 29,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 2,595 19,283 1961—Dec......... 29,098 29,061 37 152 1,921 31,217 16,929 5,587 33,954 422 514 229 244 1,112 17,259 2,859 20,118 1962—Dec......... 30,546 30,474 72 305 2,298 33,218 15,978 5,561 35,281 398 587 222 290 1,048 16,932 3,108 20,040 1963—Dec......... 33,729 33,626 103 360 2,43436,610 15,562 5,583 37,603 389 879 160 206 1,215 17,303 3,443 20,746 1964—Dec......... 37,126 36,895 231 266 2,423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964 3,645 21,609 1965—Dec......... 40.885 40,772 113 490 2,34943,853 13,799 5,565 42,206 808 683 154 231 389 18,747 3,972 22,719 1966—Dec......... 43,760 43,274 486 570 2,38346,864 13,158 6,284 44,579 1,191 291 164 429 83 19,568 4,262 23,830 1967—Jan.......... 44,066 43,847 219 389 2,21546,802 13,158 6,350 43,957 1,225 566 153 442 203 19,765 4,310 24,075 Feb......... 44,215 43,915 300 362 1,87546,587 13,144 6,409 43,525 1,252 609 136 448 496 19,675 4,034 23,709 Mar........ 44,620 44,351 269 200 1 ,60646,524 13,108 6,473 43,673 1 ,297 505 136 443 647 19,404 4,001 23,405 Apr......... 45,082 44,942 140 155 1,54046,902 13,108 6,530 43,812 1,356 860 125 463 559 19,365 3,997 23,362 45,699 45,481 218 126 1,37447,323 13,108 6,576 44,083 1,392 990 137 450 692 19,263 4,021 23,284 June....... 45,844 45,801 43 147 1 ,45947,547 13,108 6,602 44,567 1 ;385 715 128 464 609 19,388 4,130 23,518 July......... 46,807 46,784 23 91 1 ,58448,590 13,109 6,615 44,997 1,480 1,123 128 482 373 19,730 4,177 23,907 Aug......... 46,612 46,558 54 89 I ,42348,210 13,053 6,665 45,011 1,488 1,036 128 453 212 19,600 4,191 23,791 Sept........ 46,398 46,377 21 90 1 ,571 48,147 13,007 6,737 45,189 1,491 566 127 472 65 19,980 4,220 24,200 Oct......... 47,367 47,203 164 126 1 ,40848,993 13,003 6,779 45,396 1,483 974 125 476 -80 20,402 4,206 24,608 Nov...... 48,010 47,885 125 133 1 ,555 49,752 12,907 6,781 45,969 1 ,462 1,167 146 449 -211 20,458 4,282 24,740 Dec......... 48,891 48,810 81 238 2,03051,268 12,436 6,777 47,000 1,428 902 150 451 -204 20,753 4,507 25,260 1968—Jan.......... 49,046 48,982 64 237 1,90651,287»lt,983 P6,783 P46.389 pl ,393 1,011 157 48! -566 21,188 p4,652 J’25,840 Week ending—• 1967 Jan. 4............. 44,230 43,697 533 566 2,493 47,491 13,159 6,311 44,670 1,194 375 167 529 -92 20,116 4,546 24,662 11............. 44,553 44,000 553 586 2,21747,563 13,159 6,344 44,445 1,214 510 143 435 150 20,168 4,331 24,499 18............. 43,937 43,797 140 218 2,111 46,384 13,158 6,348 44,004 1,221 565 149 445 209 19,298 4,363 23,661 25............. 43,940 43,906 34 538 2,02646,581 13,158 6,360 43,567 1,234 699 174 410 307 19,709 4,280 23,989 Feb. 1............. 43,698 43,698 176 2,26746,216 13,159 6,375 43,343 1 ,242 598 138 431 344 19,654 4,255 23,909 8............. 44,133 43,928 205 354 2,017 46,630 13,159 6,392 43,405 1,252 448 145 482 393 20,056 3,793 23,849 15............. 44,244 43,987 257 456 1 ,92046,747 13,159 6,402 43,614 1,260 704 141 436 423 19,729 3,997 23,726 22............. 44,337 43,844 493 477 1,855 46,811 13,144 6,420 43,568 1,252 686 128 434 588 19,720 4,093 23,813 Mar. 1............. 44,187 43,942 245 167 1,67646,183 13,108 6,433 43,540 1,253 579 127 444 615 19,166 4,257 23,423 8..4..4..,.5..5..0.. 44,276 274 202 1,553 46,451 13,109 6,447 43,571 1 ,271 451 132 435 720 19,427 3,760 23,187 15............. 44,563 44,192 371 173 1,46546,271 13,107 6,463 43,753 1,283 244 135 454 674 19,296 3,986 23,282 22............. 44,717 44,378 339 302 1,858 46,947 13,108 6,483 43,718 1,304 592 137 436 604 19,747 3,945 23,692 29............. 44,659 44,529 130 138 1 ,577 46,480 13,108 6,496 43,674 1,324 656 137 447 598 19,247 4,082 23,329 Apr. 5............. 45,012 44,759 253 193 1,361 46,677 13,108 6,503 43,680 1 ,328 658 130 454 648 19,390 3,999 23,389 12............. 45,013 44,840 173 165 1,463 46,763 13,108 6,517 43,914 1 ,340 612 135 465 634 19,289 3,873 23,162 19............. 44,929 44,888 41 199 1,791 47,024 13,109 6,529 43,894 1,360 795 120 465 506 19,520 4,060 23,580 26............. 45,142 45,098 44 123 1,493 46,888 13,108 6,553 43,754 1 ,382 1,087 119 469 511 19,227 4,158 23,385 May 3............. 45,597 45,295 302 159 1,441 47,369 13,109 6,566 43,799 1,383 1 ,201 127 461 503 19,570 4,053 23,623 10............. 45,929 45,469 460 88 1 ,38447,567 13,109 6,567 44,015 1,396 1 ,050 143 463 539 19,636 3,777 23,413 17............. 45,543 45,243 300 148 1 ,51247,326 13,108 6,579 44,136 1 ,404 952 121 455 606 19,341 4,045 23,386 24............. 45,530 45,530 75 1 ,53247,241 13,109 6,568 44,073 1 ,391 1,068 121 442 841 18,982 4,099 23,081 31............. 45’726 45’657 69 127 1,15047,081 13,109 6,592 44,198 1,378 872 158 439 854 18,883 4,176 23,059 June 7............. 45,955 45,869 86 102 1,321 47,478 13,109 6,590 44,438 1,380 734 131 459 835 19,200 3,976 23,176 14............. 45,596 45,596 68 1 ,380 47,118 13,108 6 598 44,600 1,380 471 131 450 609 19,183 4,030 23,213 21............. 45,654 45,587 67 116 1,70847,552 13,108 6,608 44,598 1,393 520 121 450 525 19,661 4,106 23,767 28............. 45,940 45,924 16 165 1 ,40847,642 13,108 6,610 44,574 1,378 968 126 490 530 19,293 4,254 23,547 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 n BANK RESERVES AND RELATED ITEMS A-5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other Pe o ri r o d U.S. Govt, securities1 Tr u e r a y s ­ r C en u c r­ y Treas­ th w a i n th m F r e e .R m se . b rv B e e r a s n , b k a s nk Other Me r m es b e e rv r e b s ank date Total B r o i o g u u h t g ­ t ht a R m c g h e e r p a e n s u e t e s r ­ ­ c v D o a a a n n u d i c d s n ­ ­ e ts s Float 2 t T al o ­ 3 s G to o c ld k s r c o e t i a u n n u n g c r t d ­ ­ y ­ c t c i u i o i n l r n a ­ ­ h c i u o n a r g l s y d h s ­ T u re ry as­ F ei o g r n ­ Other2 c F o a u . c R n ­ . t s B W F a . n R it k h . s c r C o a e n i u n n d c r ­ y 4 Total Averages of daily figures Week ending— 1967 July 5............. 46,809 46,755 54 366 1,231 48,543 13,110 6,614 44,856 1 ,464 1 ,088 148 508 360 19,841 4,043 23,884 12............. 47,158 47,101 57 74 1,70449,097 13,110 6,610 45,256 I ,479 1 ,073 134 484 470 19,921 4,145 24,066 19............. 46,471 46,471 53 1,84748,455 13,109 6,603 45,085 1 ,477 1,021 128 484 380 19,592 4,297 23,889 26............. 46,715 46,715 54 1 ,63248,479 13,109 6,616 44,864 1,485 1 , 188 116 468 368 19,716 4,305 24,021 Aug. 2............. 46,833 46,833 119 1,43948,470 13,094 6,632 44,849 1 ,473 1,390 1 15 464 250 19,655 4,319 23,974 9............. 46,931 46,804 127 91 1,38548,536 13,057 6,642 44,985 1 ,480 920 128 457 226 20,038 3,922 23,960 16............. 46,716 46,604 112 129 1,36748,292 13,057 6,656 45,135 1 ,486 1 ,007 126 471 198 19,583 4,180 23,763 23............. 46,504 46,504 47 1 ,61448,238 13,058 6,674 45,020 1 ,497 1 ,021 133 442 257 19,602 4,171 23,773 30............. 46,249 46,249 ......... 46 1,29047,651 13,044 6,693 44,918 1,495 1,076 121 443 183 19,151 4,324 23,475 Sept. 6............. 46,693 46,600 93 79 1 ,41048,247 13,008 6,714 45,131 1 ,495 697 133 471 1 10 19,932 3,993 23,925 13............. 46,207 46,207 70 1,54447,880 13,007 6,726 45 ,398 I ,483 202 126 491 103 19,810 4,229 24,039 20............. 46,055 46,055 106 1,75447,971 13,007 6,739 45,223 1 ,487 362 126 473 24 20,021 4,295 24,316 27............. 46,452 46,452 74 1 ,53048,193 13,006 6,759 45,044 1 ,502 927 129 454 37 19,865 4,347 24,212 Oct. 4............. 46,976 46,976 144 1 ,49548,773 13,006 6,763 45,107 1,500 866 125 477 54 20,413 4,229 24,642 11............. 47,563 47,319 244 145 1 ,41849,247 13,007 6,767 45 ,407 1,473 1,002 127 502 93 20,419 3,980 24,399 18............. 47,802 47,315 487 216 1 ,40249,515 13,007 6,781 45,559 1 ,484 942 131 485 -93 20,795 4,234 25,029 25............. 47,098 47,098 58 1,56448,773 13,007 6,792 45,429 1,482 1 ,087 1 19 455 -210 20,210 4,339 24,549 Nov. 1............. 47,220 47,220 80 1,28948,643 12,978 6,787 45,341 1 ,483 929 124 462 -210 20,279 4,426 24,705 8............. 47,865 47,710 155 132 1 ,40749,458 12,907 6,777 45,563 1 ,474 928 127 470 -184 20,762 3,992 24,754 15............. 47,868 47,713 155 162 1,48749,570 12,907 6,782 45,878 1 ,470 1,096 133 451 -240 20,470 4,229 24,699 22............. 47,837 47,712 125 127 1 ,77749,796 12,906 6,782 46,089 1 ,451 1,051 148 442 -79 20,383 4,239 24,622 29.. .......... 48,396 48,347 49 119 1 ,548 50,117 12,908 6,785 46,347 1,457 1,570 175 432 -345 20,176 4,482 24,658 Dec. 6............. 48,902 48,719 183 87 I ,65550,721 12,770 6,774 46,482 1 ,441 1,306 160 444 -65 20,498 4,342 24,840 13............. 48,853 48,853 121 1 ,65250,769 12,432 6,773 46,918 1 ,445 787 140 427 6 20,252 4,458 24,710 20............. 48,708 48,708 185 2,155 51 ,1 19 12,432 6,775 47,093 1 ,444 844 156 434 -245 20,600 4,603 25,203 27........ 48,937 48,849 88 345 2,388 51,785 12,434 6,783 47,293 1 ,405 709 150 412 -251 21,285 4,402 25,687 1968 Jan. 3............. 49,298 49,044 254 495 2,335 52,286 11 ,982 6,784 47,200 1,395 949 147 567 -685 21,480 4,968 26,448 10............. 49,183 49,109 74 180 2,33451,772 11 ,983 6,781 46,857 1 ,385 1 ,054 161 493 -679 21,265 *4,659*25,924 17............. 48,758 48,700 58 224 1 ,98751,044 11,984 6,781 46,493 1 ,397 1 ,019 156 473 625 20,896 *4,676*25,572 24............. 49,105 49,105 233 1,72651,186 11 ,982 6,784 46,117 1 ,390 939 149 471 -459 21 ,346 *4,578 *25,924 31............ 48,970 48,936 34 241 1,449 50,75! *11 ,983 *6,786*45,758 *1,396 1,096 161 467 -426 21,069 *4,623 *25,692 End of month 1967 Nov. 48,954 48,608 346 76 1,78050,869 12,907 6,775 46,463 1 ,408 1,581 168 440 -16! 20,648 5,148 25,796 Dec. 49,150 48,980 170 141 2,483 51,938 11 ,982 6,784 47,226 I ,344 1,123 135 653 -773 20,999 4,631 25,630 1968 Jan.................... 49,092 48,855 237 843 1,41651,434*11 ,984 *6,788 *45,782 *1,374 1,153 160 463 -564 21 ,838 *5,022 *26,860 Wednesday 1967 Dec. 6............. 48,853 48,853 124 1 ,60950,704 12,434 6,773 46,822 1 ,441 1,030 145 440 90 19,944 4,617 24,561 13............. 48,853 48,853 156 1,68950,833 12,434 6,772 47,103 1,455 658 136 440 -214 20,461 5,131 25,592 20............. 48,740 48,740 419 2,28251 ,515 12,434 6,783 47,301 1 ,434 724 168 417 -290 20,978 5,053 26,031 27............. 49,205 48,983 222 341 2,105 51,804 12,434 6,784 47,538 1 ,386 352 131 428 -272 21,459 5,121 26,580 1968 Jan. 3............. 49,547 49,25! 296 199 2,60652,516 11 ,984 6,787 47,154 1,389 730 161 503 -723 22,073 5,319 27,392 10............. 48,515 48,515 70 1 ,928 50,586 Il ,984 6,780 46,759 1,395 1 ,471 165 485 -665 19,740 *5,100*24,840 17............. 49,023 48,617 406 1 ,048 1 ,965 52,144 11 ,984 6,782 46,382 1,398 880 144 487 -523 22,142 *5,007 ”27,149 24............. 49,045 49,045 308 1 ,388 50,856 11 ,984 6,785 46,005 1,397 1 ,008 160 462 -451 21 ,044*5,037 *26,081 31............. 49,092 48,855 237 843 1 ,4165!,434*11 ,984 *6,788 *45,782 '’1,374 1,153 160 463 -564 21 ,838 *5,022*26,860 1 U.S. Govt, securities include Federal agency obligations. on Wed. and end-of-month dates, see subsequent tables on F.R. Banks. 2 Beginning with I960 reflects a minor change in concept; see Feb. See also note 2. 1961 Bulletin, p. 164. 4 Part allowed as reserves Dec. 1, 1959-Nov. 23, 1960; all allowed 3 Includes industrial loans and acceptances, when held (industrial thereafter. Beginning with Jan. 1963, figures are estimated except for loan program discontinued Aug. 21, 1959). For holdings of acceptances weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-6 BANK RESERVES AND RELATED ITEMS □ FEBRUARY 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 l a d l qu R i e re ­ d Excess B r F i o a n a . n w R g t k s ­ . s se F r r r e v e ­ e e s T h o e t l a d l qu R ir e e ­ d Excess B r F i o a n a . n R w g t k s . ­ s s F e r r r e v e ­ e e s T h o e t ld al qu R i e re ­ d Excess B r F i o a n a . n w g R t k s ­ . s s F e r r r e v e ­ e e s 1929—June........... 2,314 2,275 42 974 -932 762 755 7 174 -167 16! 16! 1 63 -62 1933—June........... i 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............. 16,027 14,536 1,491 334 1 , 157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec............. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1 s024 1 ,011 13 6 7 1950—Dec............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 j 957—Dec............. 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 1,136 1,127 8 85 -77 1958—Dec............. 18,899 18,383 516 557 -41 4,033 4,010 23 (02 -81 I >077 1,070 7 39 -31 1959 Dec........... 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 1 ,038 1 ,038 104 -104 I960—Dec............. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 '958 953 4 8 -4 1961 Dec........... 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962—Dec............. 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 1,042 1,035 7 18 -11 1963—Dec............. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1 ,051 5 26 -21 1964—Dec............. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1 ,083 I ,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1966—Dec............. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Jan............. 24,075 23,702 373 389 -16 4,594 4,571 23 69 -46 1,164 1 ,136 28 151 -123 Feb............. 23,709 23,351 358 362 -4 4,557 4,511 46 113 -67 1,099 1,117 -18 46 -64 Mar........ 23,405 22,970 435 199 236 4,612 4,608 4 72 -68 1,133 1,122 1 1 26 -15 Apr............. 23,362 23,053 309 134 175 4,644 4,613 31 41 - (0 1 , (31 (, (40 -9 u -20 May........... 23,284 22,914 370 101 269 4,614 4,583 31 19 12 1,133 1,127 6 5 1 June........... 23,518 23,098 420 123 297 4,701 4,664 37 30 7 1,150 1,138 12 15 -3 July............ 23,907 23,548 359 87 272 4,787 4,749 38 18 20 1,152 1,162 -10 5 -15 Aug............. 23,791 23,404 387 89 298 4,633 4,619 14 8 6 1,153 1,148 5 4 24,200 23,842 358 90 268 4,797 4,747 50 11 39 1,172 1,169 3 3 Oct............. 24,608 24,322 286 126 160 4,888 4,871 17 27 -10 1,194 1,188 6 2 4 Nov............ 24,740 24,337 403 133 270 4,826 4,784 42 19 23 1,191 1,178 13 2 11 Dec............. 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1 ,217 8 13 -5 1968—Jan............. *25,840*25,465 *375 237 *138 *5,170 *5,131 *39 48 *-9 H ,231 *1,230 *1 3 *—2 Week ending— 1967—Jan. 4.... 24,662 24,267 395 565 -170 4,846 4,827 19 201 -182 1,224 1 ,220 4 141 -137 11.... 24,499 23,872 627 585 42 4,618 4,579 39 254 -215 1,143 1,137 6 168 -162 18. 23,661 23,536 125 217 -92 4,470 4,451 19 3 16 1,084 1 ,086 -2 84 -86 25 .... 23,989 23,473 516 538 -22 4,544 4,521 23 1 22 1,107 1,108 -1 251 -252 July 5.... 23,884 23,422 462 353 109 4,921 4,801 120 173 -53 1,191 1,185 6 77 -71 12. 24,066 23,423 643 69 574 4,780 4,719 61 61 1,148 1,143 5 5 19. . 23,889 23,653 236 51 185 4,773 4,742 31 31 1,141 1,138 3 3 26.... 24,021 23,589 432 54 378 4,735 4,727 8 8 1,179 1,170 9 9 Aug. 2. ... 23,974 23,679 295 116 179 4,800 4,778 22 28 -6 1,189 1,183 6 2 4 9 . ... 23,960 23,589 371 91 280 4,699 4,684 15 1 14 1,177 1,173 4 4 16.... 23,763 23,381 382 129 253 4,593 4,578 15 6 9 1,135 1,134 1 3 -2 23.... 23,773 23,300 473 47 426 4,590 4,577 13 13 1,150 1,140 10 10 30. . .. 23,475 23,215 260 46 214 4,588 4,565 23 23 1,130 1,129 1 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 1,171 1,171 27 24,212 24,001 211 74 137 4,858 4,839 19 19 1,202 1,194 8 8 Oct. 4. ... 24,642 24,229 413 144 269 4,955 4,929 26 4 22 1 ,206 1,204 2 2 11 24,399 24.150 249 145 104 4,804 4,771 33 21 12 1,177 1,178 -1 -1 18. . . . 25,029 24,468 561 216 345 4,925 4,890 35 98 -63 1,198 1,198 7 -7 25 .. 24,549 24,359 190 58 132 4,977 4,893 84 84 1 ,193 1,187 6 6 Nov. 1 .... 24,705 24,414 291 80 211 4,942 4,919 23 5 18 1,179 1,180 -1 -1 8.... 24,754 24,424 330 132 198 4,852 4,824 28 3 25 1,197 1,194 3 id -7 15.... 24,699 24,181 518 162 356 4,687 4,658 29 36 -7 1,166 1,159 7 7 22.... 24,622 24,401 221 127 94 4,816 4,797 19 29 -10 1,197 1,186 11 11 29.... 24,658 24,274 384 119 265 4,856 4,808 48 8 40 1,177 1,173 4 ........... 4 Dec. 6.... 24,840 24,552 288 87 201 4,920 4,885 35 35 1,201 1,197 4 4 13. 24,710 24,377 333 121 212 4,824 4,809 15 2 13 1,158 1,151 7 7 20. 25,203 24,936 267 185 82 5,088 5,062 26 37 -11 1,217 1,219 -2 -2 27.... 25,687 25,245 442 345 97 5,236 5,179 57 27 30 1,264 1,249 15 2 13 1968—Ian. 3.... 26,448 25,795 653 495 158 5,460 5,362 98 166 -68 1,313 1 ,299 14 54 -40 10... . *25,924*25,339 *585 180 *405 *5,110 *5,097 *13 69 *-56 *1,221 *1,226 *-5 *-5 17. .. . *25,572*25,418 *154 224 *-70 *5,099 *5,079 *20 53 *-33 *1,220 *1.214 *7 9 *-2 24.... *25,924*25,565 *359 233 "126 *5,149 *5,130 *19 *19 *1,231 *1,226 *5 2 *3 31 . ... *25,692*25,370 *322 241 *81 *5,130 *5,108 *22 32 *-10 *1,226 *1,222 *3 1 *2 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 Banks Banks T h o el t d al Required Excess T h o e t l a d l Required Excess 761 749 12 409 -397 632 610 22 327 -305 ..........................1929—June 648 528 120 58 62 441 344 96 126 -30 3,140 1,953 1,188 1,188 1 ,568 897 671 3 668 .. ......................1939—Dec. 4'317 3 ,014 1 303 t I ,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. 8,042 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 ........................I960—-Dec. 8; 367 8^308 59 39 20 6,931 6329 502 31 471 ..........................1961—Dec. 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 8,393 8,325 68 190 -122 7,347 6'939 408 74 334 8,735 8,713 22 125 -103 7,707 7,337 370 55 315 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 ............... 1966'—Dec. 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. 9/166 9,300 66 53 13 8'294 7,940 354 48 306 9^397 9 382 15 53 -38 81189 7,918 271 29 242 9,319 9*282 37 46 -9 8,219 7,922 297 31 266 9,381 9*314 67 34 33 8,285 7383 302 44 258 9,564 9^542 22 10 12 8^03 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 9,878 9,860 18 42 -24 8^48 8'402 246 55 191 .....................................Oct. 9,900 9'835 65 51 14 8,823 8'540 283 61 222 ......................................Nov. 10,081 10,031 50 105 -55 8^90! 8334 267 80 187 ............................... Dec. i’10,3I5 *10,287 *28 HI *-83 *9,124 *8,817 *307 75 *232 ..........................1968—Jan. Week ending— 9,832 9,773 59 159 -100 8,760 8,447 313 64 249 ....................1967—Jan. 4 9^671 9'648 23 80 -57 9'068 8,507 561 83 478 ........................................1! 9,562 9'539 23 52 -29 8,545 8 360 85 78 7 ..........................................18 9,507 9’454 53 222 -169 8,830 8 390 440 64 376 .........................................25 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 9,5^8 28 36 -8 8,360 8,120 240 50 190 ................................Aug. 2 9,623 9^579 44 52 -9 8,461 8 J52 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 9^592 9; 560 32 19 13 8,636 8,331 305 51 254 ....................................‘...13 9,627 9,616 11 50 -39 8,736 8J64 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 8305 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 8311 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 9,882 9,844 38 69 -31 8,847 8372 275 50 225 ..........................................13 10,049 10,018 31 52 -21 8,849 8'637 212 96 116 .........................................20 10,177 10^130 47 199 -152 9,010 8,687 323 117 206 .........................................27 10,491 10,331 160 216 -56 9,185 8,803 382 59 323 ....................1968—Jan. 3 1’10,247 *10^208 *39 59 *-20 *9*346 *8,808 *538 52 *486 .........................................10 *10,359 *10,342 *16 97 *—81 *8,894 *8,783 *111 65 *46 .........................................17 *10,356 *10,329 *27 157 *-130 *9,187 *8,880 *308 74 *234 .........................................24 *10,276 *10,238 *37 90 *-53 *9,060 *8,801 *259 118 *141 .........................................31 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. Ranks: 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 □ FEBRUARY 1968 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less—• Net— Gross transactions Net transactions Reporting banks and Bor­ Total week ending—■ s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . k r R ­ g s . s F f i b e n u N d a n t n e e e d t r r k s a ­ l S d u e o r f p i r c lu it s r P r e e e q s a r e o v u c r g f i v e r . e n e s d t c P ha u s r e ­ s Sales a 2 c tr - t a w io n a n s y ­ s 2 b c o b P h u a f a y u n n s i r k n e e ­ s s g t s o b S e a f a l n l l n i e k n e s g s t d L ea o to l a e n r s s 3 de f r i a r n o l o g e w m s r ­ s 4 l N oa e n t s trans. Total—46 banks 1967—Dec. 6............ 44 21 506 -484 4.4 2,780 2,273 1 ,513 1 ,267 760 1,611 77 1 ,534 13........... 26 56 491 -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 I ,610 27............ 86 131 671 -716 6.2 2,986 2,315 1,628 1 ,358 687 1,598 111 1,488 1968—Jan. 3............ 183 336 1,066 -1,219 10,3 2,758 1 ,692 1,317 1 ,441 376 1 ,786 98 1,688 10........... 21 75 1,672 -1,725 15.2 3,340 1,668 1 ,464 1,876 204 2,096 104 1 ,992 17........... 30 115 1 ,444 -1,529 13,4 3,227 1,783 1,525 1,702 258 1,985 97 1,889 24........... 36 77 406 -447 3,9 2,681 2,276 1,568 1,114 708 1,762 69 1,693 31............ 44 70 121 -147 1.3 2,504 2,384 1,508 997 876 2,070 72 1 ,998 8 in New York City 1967—Dec. 6....... 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 1968—Jan. 3........... 85 156 407 -478 9.7 1,127 720 520 608 200 1,377 93 1 ,284 10. .......... 7 55 831 -880 18.9 1 ,381 550 531 850 19 1,403 104 1 ,299 17 15 51 518 -554 12.0 1 ,246 728 693 553 35 1,249 97 1,152 24........... 15 -126 140 3,0 883 1,009 809 74 200 1,037 63 974 31........... 16 27 -190 179 3.9 840 1 ,030 659 181 371 1,373 72 1 ,301 38 outside New York City 1967—Dec, 6............ 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 I ,814 1,394 958 856 436 390 11 379 1968—Jan. 3........... 99 181 659 -741 10.7 1,631 972 797 834 175 409 5 404 10........... 14 20 840 -846 12.6 1,958 1,118 933 1 ,026 185 693 693 17............ 15 63 926 -975 14.4 1 ,981 1 ,055 832 1,150 224 737 737 24........... 22 77 532 -587 8.6 1 ,798 1 ,267 759 1 ,040 508 724 6 719 31........... 28 43 31 1 -327 4.8 1 ,664 1,353 848 816 505 697 697 5 in City of Chicago 1967—Dec. 6............ 3 -162 166 15.4 312 475 251 62 224 15 15 13............ 3 -143 146 14.1 280 423 254 27 170 1 1 20............ -2 -277 274 24.9 278 555 252 27 303 1 I 27............ 7 -194 202 17.8 301 496 294 7 201 1968—Jan. 3 ....... 11 54 -34 -9 7 270 304 209 61 95 47 47 10........... -3 5 -8 .7 338 332 273 65 59 61 61 17............ 3 6 164 -167 15,3 405 241 222 183 19 29 29 24............ 5 -3 8 .7 303 306 268 35 38 38 38 31............ 2 -16 17 1.6 306 321 268 38 54 33 33 33 others 1967—Dec. 6............ 11 21 571 -582 10.5 1 ,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 1 ,604 815 591 1 ,013 224 494 4 490 27............ 26 104 615 -693 12.3 1,513 898 663 849 234 390 11 379 1968—Jan. 3........... 87 126 693 -732 12.8 1.360 668 588 773 80 362 5 357 10........... 17 20 835 -838 14.9 1.621 786 660 961 126 632 632 17 12 57 762 -807 14.2 1 ,577 814 610 967 205 708 708 24........... 17 77 534 -595 10.4 I ,495 961 491 1 ,004 470 687 6 681 31........... 26 43 327 -344 6.0 1 ,358 1 ,032 581 778 451 664 664 1 Based upon reserve balances, including all adjustments applicable to 4 Federal funds borrowed, net funds acquired from each dealer by the reporting period. Carryover reserve deficiencies, if any, are de­ clearing banks, reverse repurchase agreements (sales of securities to ducted. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by Govt, or other issues. for each bank indicates extent to which its weekly average purchases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ DISCOUNT RATES A-9 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to ail others under Advances and discounts under Advances under last par. Sec. 133 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Jan. 31 date rate Jan. 31 date rate Jan. 31 date rate Boston.......................................... 4*4 Nov. 20,1967 4 5 Nov. 20,1967 4y2 5*/z Nov. 20, 1967 5 New York.................................... 4/2 Nov. 20,1967 4 5 Nov. 20,1967 414 6 Nov. 20, 1967 5*4 Philadelphia.................................. 4l/2 Nov. 21’1967 4 5 Nov. 21,1967 41/2 sy2 Nov. 21, 1967 5 Cleveland...................................... 4*/2 Nov. 20, 1967 4 5 Nov. 20, 1967 4V4 6 Nov. 20, 1967 5*/2 Richmond.................................... 4*4 Nov. 20,1967 4 5 Nov. 20,1967 4*/z 5*/2 Nov. 20, 1967 5 Atlanta.......................................... 4*/2 Nov. 20, 1967 4 5 Nov. 20, 1967 4*/2 6*/z Nov. 20, 1967 6 Chicago........................................ 4(4 Nov. 20,1967 4 5 Nov. 20,1967 4*4 5*/2 Nov. 20, 1967 5 St. Louis........................................ 4'A Nov. 27; 1967 4 5 Nov. 27, 1967 4*/i 5*4 Nov. 27, 1967 5 Minneapolis................................ 4*4 Nov. 20, 1967 4 5 Nov. 20, 1967 4*4 5 *,4 Nov. 20, 1967 5 Kansas City,................... 4!4 Nov. 20, 1967 4 5 Nov. 20,1967 4*4 5*A Nov. 20, 1967 5 Dallas.......................................... 4*4 Nov. 20; 1967 4 5 Nov. 20, 1967 4*4 5*4 Nov. 20, 1967 5 San Francisco............................... 4'4 Nov. 20; 1967 4 5 Nov. 20,1967 414 5’4 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 all F.R. of date all F.R. of date all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. 1955 1959 In effect Dec. 31, 1941........ 1 -1'4 1 1'4-114 1'4 Mar. 6....................2..'.4..-..3 3 ' 15........................... 1’4-144 144 16........................... 3 3 1942 1’4 144 May 29........................... 3 -3'4 3*/z 1 1 Aug. 4........................... 1’4-214 1’4 June 12........................... 3'4 3*4 Oct 15............................. t 14-1 1 5............................. 1’4-2% 2 3'4-4 4 30............................... t '4 t’/z 12........................... 2 -2% 2 18........................... 4 4 Sept. 9........................... 2 -2'4 2’4 ‘ 13........................... 2'4 2'4 1960 1946 Nov. 18........................... 214-2'4 2'4 June 3....................3..'.4..-..3 4 t 14-1 1 23........................... 2'4 2'4 10........................... 3'4-* 3*4 1 1 14..........3..'.4..............3*/2 1956 Aug. 12.......................... 3 -3'4 3 2'4—3 2’4 3 3 1948 ‘ 20.......................... 2’4-3 2’4 Jan. 12.......................1. ....-1% 114 2’4-3 3 1963 Aug, 2 1 1 3 9 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1 4 1 - ' ' 4 4 114 1 1 1 1 1 1 4 4 4 31.... 1 .. 9 . 5 .. 7 .................. 3 3 July 2 1 6 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 - '4 3'4 3 3 * * / / z z Au 1 g 9 . 5 0 2 1......................1..1..4..-.1..14 114 D N e o c v . . 2 1 3 2 5 . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 - - '4 3 3 ' ' 4 4 3 3 3 3 '4 Nov. 2 3 4 0 . . . . . . . . 1 . . . . 9 . . 6 . . . . 4 . . . . . . ............... 3'4 4 -4 4 4 25............................... 114 114 1958 1965 Jan. 22....................2..'.4..-..3 3 4 -4'4 4*/2 1953 24........................... a 13 . . . 4'4 414 Jan. 16.....................U....4..-.2. 2 Mar. 7.......... 23............................. 2 2 2 13 1 . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 2^% 2'4 1967 15.. F .. 1 e .. 9 b . 5 . . . 4 .. .. 5 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......1..1.. 0 4..- 4 .2. t 1 % 44 A M p a r y , 1 9 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 ’ ’ ’4 4 4 1 - - - 4 2 2 2 4 '4 2 1 1 ’ % 4 A No p v r. . 2 1 7 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . 7 . . . . ...... 4 4 .. ..4 4 .. - - .'4. 4 4 .. ' ' . / 4 . z .. .........4 4 4 4 * * 4 4 Apr. 14............................. 114-114 114 ’ 23.................... 2 2 * 16............................. 114-114 1'4 Oct. 24........................... 2 -2'4 2 1968 May 21............................. 114 1'4 Nov. 7........................... 2'4 2'4 4'4 4*/z t Preferential rate of one-half of 1 per cent for advances secured by against U.S. Govt, obligations was the same as its discount rate except U.S. Govt, obligations maturing in I year or less. The rate of 1 per cent in the following periods (rates in percentages): 1955—May 4-6, 1.65; was continued for discounts of eligible paper and advances secured by Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. such paper or by U.S. Govt, obligations with maturities beyond 1 year. 24-29, 2.75; 1957—Aug. 22, 3.50; 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, 2.7 5; 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 □ FEBRUARY 1968 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4 deposits 2 deposits 2 (all classes of banks) Time depos­ its Reserve Country Other Effective date 1 C re e s n e t r r v a e l s R er e v ­ e Co tr u y n ­ cl ( a o a s l f s l e s Effective date 1 city banks banks d S e in p a g v o s ­ s ­ time deposits ba c n i k ty s 3 b c a i n ty k s banks banks) $ U 5 n m de il r ­ $5 O v m e i r l ­ $ U 5 n m de il r ­ $5 O v m e i r l ­ its $ U 5 n m de il r ­ S O 5 v m e i r l­ lion lion lion lion lion lion In effect Dec. 31,1949........ 22 18 12 5 1966—July 14,21....... 5 6'4 5 2 5 4 54 5 Sept, 8, 15....... 6 1951—Jan. 11,16.............. 23 19 13 6 Jan. 25, Feb, I.... 24 20 14 1967—Mar. 2............. 31/2 3/2 1953—July 9, 1................ 22 19 13 Mar. 16............. 3 3 1954-—’June 24, 16........... 21 5 July 29, Aug. I .... 20 18 12 1968—Jan. 11,18....... 16'4 17 12 12'4 1958—Feb. 27, Mar. 1.... lO'/z 17'4 H‘/2 Mar. 20, Apr. I.... 19 17 11 In effect Jan. 31, 1968.. 16'4 17 12 I2'/Z 3 3 6 Apr. 17.................... 18'/, Apr. 24.................... I 8 16'4 Present legal 1960—Sept. 1.................... l7'/i requirement: Nov. 24.................... 12 10 7 3 3 3 Dec. 1.................... 161/2 Maximum. ......... 22 14 10 10 10 1962—July 28.................... (3) Oct. 25, Nov. 1.... 4 1 When two dates are shown, the first applies to the change at central 4 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve or reserve city banks and the second to the change at country club accounts became subject to same requirements as savings deposits. banks. For changes prior to 1950 see Board’s Annual Reports. 5 See preceding columns for earliest effective date of this rate. 2 Demand deposits subject to reserve requirements are gross demand 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 further details, see Board’s Annual Reports. MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Nov. 1, 1933—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type and maturity of deposit Nov. Feb. Jan. Jan. Jan. July Nov. Dec. Type of deposit July Sept. 1, 1, 1, 1, 17, 24, 20, 26, 1933 1935 1936 1957 1962 1963 1964 1965 1966 1966 Savings deposits: Savings deposits.................. 4 4 12 months or more....... 3 2'/2 24 3 4 4 4 4 Other time deposits:1 Less than 12 months.... 3 2'4 2'4 3 314 3/2 4 4 Multiple-maturity: Other time deposits:1 90 days or more....... 5 5 12 months or more,..... 3 2'4 2'4 3 4 4 4/2 5'4 Less than 90 days..... 4 4 6 months to 12 months... 3 2'4 2'4 3 3/2 4 4/2 5'4 (30-89 days) 90 days to 6 months..... 3 2'4 2 2^2 2^ 4 4^ 5'4 Single-maturity: Less than 90 days......... 3 2'4 1 1 I 1 4 5 >4 $100,000 or more..... 5/2 5'4 (30-89 days) Less than $100,000. . . . 5'4 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) Regulation Ja 1 n 95 . 5 4, Ap 1 r 9 . 5 2 5 3, Ja 1 n 9 . 58 16, A 1 u 9 g 5 . 8 5, Oc 1 t 9 . 5 8 16, Ju 1 ly 96 2 0 8, Ju 1 ly 96 2 10, N 1 o 9 v 6 . 3 6, Regulation T: For extensions of credit by brokers and dealers on listed securities.................................................. 60 70 50 70 90 70 50 70 For short sales......................................................... 60 70 50 70 90 70 50 70 Regulation U: For loans by banks on stocks.............................. 60 70 50 70 90 70 50 70 Note.—Regulations T and U, prescribed in accordance with Securities centage of its market value at the time of extension; margin requirements Exchange Act of 1934, limit the amount of credit that may be extended on are the difference between the market value (100 per cent) and the maxi­ a security by prescribing a maximum loan value, which is a specified per­ mum loan value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 All All Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Dec. 6, 1967 Four weeks ending Jan. 3, 1968 Gross demand—Total.... 158,076 32,197 6,886 57,579 61,415 Gross demand—Total.... 165,182 34,911 7,292 60,129 62,851 Interbank..................... 17,427 5,806 1,239 8,151 2,231 Interbank........... 18,189 6,125 1,285 8,432 2,348 U.S. Govt.................... 4,348 '752 204 1,671 1 ,722 U.S. Govt.................... 4^568 1 ,208 273 1 ,652 1 ,'437 Other........................... 136^302 25,641 5,444 47,756 57'462 Other...................... 142,425 27,579 5,735 50,045 59^068 Net demand J.................. 124,296 22,359 5,411 44,710 51 ,816 Net demand '.......... 128,882 24,333 5,719 46,059 52,772 Time............................... 147,732 21 ,076 6,028 55,651 64,978 Time.................... 148,197 20,924 6,034 55,915 65,324 Demand balances due Demand balances due from dom. banks...... 8,383 297 165 1 ,970 5,952 from dom. banks...... 8,842 353 179 2,126 6,183 Currency and coin........... 4,323 369 82 1 ,325 2,549 Currency and coin........... 4,608 414 88 1 ,423 2,683 Balances with F.R. Balances with F.R. Banks........................... 20,382 4,451 1,104 8,560 6,267 Banks,.......................... 20,904 4,739 1,151 8,726 6,290 Total reserves held.......... 24,705 4,820 1,186 9,885 8,816 Total reserves held.......... 25,512 5,153 1,239 10,149 8,973 Required.................... 24,352 4,787 1,179 9,841 8 546 Required.................... 25,089 5,104 l',230 10,08! 8,675 Excess.......................... '353 ’ 33 7 44 270 Excess.......................... 423 49 9 68 298 1 Demand deposits subject to reserve requirements are gross demand Note.—Averages of daily figures. Balances with F.R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities by maturity Total Treasury bills Others within I year 1-5 years Month Exch., c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f r m r t s i p t , y ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x o t i u c f r r h t i s . t y tions 1966—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 Apr............ 975 206 415 '859 206 415 io 50 May.......... 1,146 107 412 936 107 412 -2,879 107 2,879 June. 1,681 567 223 1,332 567 223 17 185 55 July........... 1'221 956 94 1 ,221 956 94 Aug............ '591 440 400 591 440 400 -1,225 1,338 Sept 1,110 623 127 919 623 127 24 121 44 Oct............. 700 27 200 700 27 200 Nov............ 1,386 168 1,200 168 -1,227 121 1,227 Dec............ 622 250 ’622 250 169 -73 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal acceptances (U.S. Govt, Net agency 5-10 years Over 10 years securities) change obliga­ Month in U.S. tions Under Net c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s G s i o e ti c v e u s t, r ­ p ( m a n u g e r e r c t n e h t r e s a e ­ ) s ­ e r O i n g u e h t t t ­ , a r m c e g h n e p r a e e n u s t e t r e s ­ ­ , change * 1966—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 3253 938 13 -7 4 948 Apr., . . 32 25 1,727 1,529 552 -3 -I 57 606 May... 62 42 1 ,’438 1 ’459 606 -10 2 -98 499 June,.. 109 -55 39 753 ’992 652 1 21 45 719 July.... 286 370 87 -1 -13 -45 28 Aug.... -113 450 450 -249 -14 -263 Sept.... 27 - 44 19 453 453 361 -12 104 453 Oct...... 1,427 I ,427 474 1 -104 370 Nov.... 45 20 1 ’369 1 '046 1 ,541 23 5 1 ,570 Dec,.. . -96 ............. 545 736 ’182 15 16 89 '302 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 □ FEBRUARY 1968 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1968 1968 1967 Jan. 31 Jan. 24 Jan. 17 Jan. 10 Jan. 3 Jan. 31 Dec. 31 Jan. 31 Assets Gold certificate account............................................. 9,547 9,527 9,527 9,527 9,527 9,547 9,550 10,838 Redemption fund for F.R. notes................................. 1,937 1 ,940 1 ,943 1 ,950 1 ,953 I ,937 1,931 1,840 Total gold certificate reserves.................................. 11,484 11,467 Il,470 11,477 11,480 11,484 11,481 12,678 Cash............................................................................. 409 403 392 370 362 409 360 346 Discounts and advances: Member bank borrowings....................................... 843 308 I ,048 70 199 843 141 71 Other........................................................................ Acceptances: Bought outright.................................................... 63 68 68 73 74 63 75 73 Held under repurchase agreements......................... 20 47 40 90 20 89 Federal agency obligations-—-Held under repurchase agreements............................................................... 4 ........ 41 ..............3.8. ................ U.S. Govt, securities: Bought outright: Bills...................................................................... 15,773 15,963 15,612 15,510 16,246 15,773 15,975 11,612 Certificates—Special............................................ Other.............................................. 4,351 Notes................................................................. 26,952 26,952 26,918 26,918 26,918 26,952 26,918 21,302 Bonds................................................................ 6,130 6,130 6,087 6,087 6,087 6,130 6,087 6,199 Total bought outright.............................................. 48,855 49,045 48,617 48,515 49,251 48,855 48,980 43,464 Held under repurchase agreements......................... 237 402 255 237 132 Total U.S. Govt, securities......................................... 49,092 49,045 49,019 48,515 49,506 49,092 49,112 43,464 Total loans and securities............................................ 50,018 49,468 50,179 48,658 49,910 50,018 49,455 43,608 Cash items in process of collection............................. 7,105 7,545 8,842 7,806 9,542 7,105 8,465 6,833 Bank premises..................................................... 112 112 112 112 112 I 12 112 107 Other assets: Denominated in foreign currencies......................... 1 ,470 1,326 I ,387 1 ,524 1,587 1,470 1,604 397 IMF gold deposited 1............................................ 233 233 233 233 233 233 233 212 All other.................................................................. 462 428 398 362 328 462 316 455 Total assets................................................................ 71,293 70,982 73,013 70,542 73,554 71,293 72,026 64,636 Liabilities F.R. notes.................................................................... 40,277 40,503 40,876 41,237 41,614 40,277 41,642 38,098 Deposits: Member bank reserves............................................. 21,838 21,044 22,142 19,740 22,073 21,838 20,999 18,773 U.S. Treasurer—General account........................... 1,153 1,008 880 1,471 730 I ,153 1,123 813 Foreign.................................................................... 160 160 144 165 161 160 135 148 Other: IMF gold deposit!.............................................. 233 233 233 233 233 233 233 212 All other............................................................... 230 229 254 252 270 230 430 225 Total deposits............................................................ 23,614 22,674 23,653 21,861 23,467 23,614 22,920 20,171 Deferred availability cash items................................... 5,689 6,157 6,877 5,878 6,936 5,689 5,972 4,839 Other liabilities and accrued dividends........................ 318 297 302 306 317 318 296 222 Total liabilities............................................................. 69,898 69,631 71,708 69,282 72,334 69,898 70,830 63,330 Capital accounts Capital paid in............................................................. 606 606 603 602 601 606 598 573 Surplus....................................................................... 598 598 598 598 598 598 598 570 Other capital accounts................................................. 191 147 104 60 21 191 163 Total liabilities and capital accounts.................. 71,293 70,982 73,013 70,542 73,554 71,293 72,026 64,636 Ratio of gold certificate reserves to F.R. note liability (per cent) 2.............................................................. 27.8 27.6 27.4 27.3 27.1 27.8 27.1 32,3 Contingent liability on acceptances purchased for foreign correspondents............................................ 141 150 158 164 155 141 156 173 U.S. Govt, securities held in custody for foreign account................................................................... 8,861 8,601 8,829 8,915 9,112 8,861 9,223 7,141 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).................... 43,597 43,794 43,912 44,044 44,306 43,597 44,311 41,584 Collateral held against*notes outstanding: Gold certificate account................................... 6,663 6,663 6,663 6,663 6,663 6,663 6,663 6,750 Eligible paper......... ....................................... 3 U.S, Govt, securities............................................... 38,566 38,566 38,606 38,606 38,606 38,566 38,606 36,376 Total collateral.............................. 45,229 45,229 45,269 45,269 45,269 45,229 45,269 43,129 1 See note 1(b) to table at bottom of p. A-68. 2 Computed from statements for all Federal Reserve Ranks combined. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FEDERAL RESERVE BANKS A-13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1968 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a ­ a­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ C ca h g i o ­ Lo S u t. i s M ap i o n l n i e s ­ K C s a a it s n y ­ Dallas F c S r i a s a c n n o ­ Assets Gold certificate account..................... 9,547 568 2,222 545 737 903 541 1,713 360 163 335 311 1,149 Redemption fund for F.R. notes....... 1,937 110 472 101 156 176 107 328 67 32 75 70 243 Total gold certificate reserves........ 11,484 678 2,694 646 893 1,079 648 2,041 427 195 410 381 1,392 F.R. notes of other Banks................. 1,088 96 284 62 87 68 131 81 43 19 38 40 139 Other cash.................................... 409 25 48 10 56 28 49 75 36 6 20 16 40 Discounts and advances: Secured by U.S. Govt, securities,,. 843 7 285 4 29 41 10 60 16 5 43 41 302 Other.............................................. Acceptances: , Bought outright.......................... 63 63 Held under repurchase agreements . 20 20 Federal agency obligations—Held under repurchase agreements...... U.S. Govt, securities: Bought outright.......................... 48,855 2,539 12,516 2,499 3,572 3,533 2,566 8,027 1,690 975 1,896 2,010 7,032 Held under repurchase agreements. 237 237 Total loans and securities................... 50,018 2,546 13,121 2,503 3,601 3,574 2,576 8,087 1,706 980 1,939 2,051 7,334 Cash items In process of collection... 9,043 604 1,707 545 665 690 791 1,478 446 274 596 512 735 Bank premises.............................. 112 3 10 2 5 7 20 18 9 3 17 9 9 Other "assets: Denominated in foreign currencies. 1,470 72 1377 78 132 76 93 215 50 34 65 84 194 233 233 All other................................. 462 23 118 25 35 34 23 76 17 9 18 19 65 Total assets......................................... 74,319 4,047 18,592 3,871 5,474 5,556 4,331 12,071 2,734 1,520 3,103 3,112 9,908 Liabilities F.R. notes......................................... 41,365 2,442 9,668 2,388 3,333 3,808 2,329 7,220 1,538 704 1,533 1,389 5 013 Deposits: Member bank reserves............... 21,838 902 6,349 888 1,338 959 1,130 3,207 729 485 909 1,149 3,793 U.S. Treasurer—General account.. 1,153 35 262 59 58 87 71 131 48 57 107 67 171 Foreign...................................... 160 7 349 8 13 8 9 22 5 3 7 9 20 Other: 233 233 All other................................ 230 1 196 I i 7 2 2 1 i 2 1 15 Total deposits................................... 23,614 945 7,089 956 1,410 1,061 1,212 3,362 783 546 1,025 1,226 3,999 Deferred availability cash items...... 7,627 576 1,387 438 586 589 688 1,231 355 231 473 407 666 Other liabilities and accrued dividends 318 16 88 15 23 22 16 51 11 7 12 13 44 Total liabilities................................. 72,924 3,979 18,232 3,797 5,352 5,480 4,245 11,864 2,687 1,488 3,043 3,035 9,722 Capital accounts Capital paid in................................... 606 29 157 32 54 31 38 89 21 14 27 35 79 Surplus.................................... 598 29 154 32 54 31 38 87 20 14 26 34 79 Other capital accounts........................ 191 10 49 10 14 14 10 31 6 4 7 8 28 Total liabilities and capital accounts.. 74,319 4,047 18,592 3,871 5,474 5,556 4,331 12,071 2,734 1,520 3,103 3,112 9,908 Ratio of gold certificate reserves to F.R. note liability (per cent): Jan. 31, 1968.......................... 27.8 27.8 27.9 27.1 26.8 28.3 27.8 28.3 27.8 27.7 26.7 27.4 27.8 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 Jan. 31 ’1967.......................... 32.3 34.9 32.3 33.5 32.3 32.3 31,5 32.3 33.5 25.0 31.4 30.6 32.4 Contingent liability on acceptances purchased for foreign correspond­ ents .............................................. 141 7 436 7 13 7 9 21 5 3 6 8 19 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS’ ACCOUNTS F.R. notes outstanding (issued to Bank)........................................ 43,597 2,555 10,244 2,456 3,595 3,931 2,475 7,539 1,610 730 1,608 1,506 5,348 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...................... 38,566 2,176 9,400 2,100 3,100 3,355 2,150 6,450 1,370 635 1,450 1 ,380 5,000 Total collateral........................... 45,229 2,626 10,400 2,625 3,700 3,995 2,600 7,850 1,701 762 1,675 1,560 5,735 1 After deducting $1,093 million participations of other F.R. Banks. 3 After deducting $111 million participations of other F.R. Banks. 2 See note 2 to table at bottom of p. A-68. 4 After deducting $105 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 □ FEBRUARY 1968 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1968 1968 1967 Jan. 31 Jan. 24 Jan.17 Jan. 10 Jan. 3 Jan. 31 Dec. 31 Jan. 31 Discounts and advances—Total........................... 843 308 1 ,048 70 199 843 141 71 Within 15 days....................................... 818 307 1,047 69 197 818 139 66 16 days to 90 days................................................... 25 1 i 2 25 2 5 91 days to 1 year.................................................... Acceptances—Total..................................................... 83 115 108 73 164 83 164 73 Within 15 days......................................................... 32 56 48 10 101 32 101 16 16 days to 90 days................................................... 51 59 60 63 63 51 63 57 91 days to 1 year.................................................. U.S. Government securities—Total............................ 49,092 49,045 49,023 48,515 49,547 49,092 49,150 43,464 Within 15 days l....................................................... 2,718 2,263 2,686 1,294 2,126 2,718 1,365 4,108 16 days to 90 days................................................... 7,662 8,007 7,720 8,412 8,546 7,662 8,551 6,000 91 days to 1 year..................................................... 21,062 21,125 21 ,045 21,237 21,303 21,062 21,662 24,505 Over 1 year to 5 years............................................. 16,237 16,237 16,185 16,185 16,185 16,237 16,185 7,458 Over 5 years to 10 years.......................................... 853 853 832 832 832 853 832 991 Over 10 years........................................................... 560 560 555 555 555 560 555 402 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) Nether­ End of period Total s P t o e u rl n in d g s B f e ra lg n i c a s n C d a o n l a l d ar i s an F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese gu la il n d d e s r s f S r w an is c s s 1966—Dec............................. 875 594 55 2 1 216 3 1 * 3 1967—Mar............................ 160 96 55 3 1 1 1 1 3 Apr............................. 184 121 55 3 1 1 I 1 2 May.......................... 149 115 25 3 1 l 1 * 2 June........................... 578 399 29 3 1 144 1 1 * 2 July.... ............. 579 566 4 3 1 2 1 1 2 Aug............................. 866 761 3 3 1 94 1 1 3 Sept............................ 788 754 13 3 I 13 I 1 * 3 Oct.............................. 953 898 * 3 1 46 1 1 * 3 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (in billions of dollars) Period T 2 o 3 t 3 a l Leading SMSA’s T S o M ta S l A 23 ’s 2 o 2 th 26 e r T 2 o 3 t 3 a l Leading SMSA’s T S o M ta S l A 23 ’s 2 o 2 th 26 e r SMSA’s N.Y. 6 others2 N (e . x Y cl . . ) SMSA’s SMSA’s N.Y. 6 others2 ( N e . x Y cl . . ) SMSA’s 1966—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—Ian.............................. 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 2904 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 I,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 1968—Jan.............................. 7,369.4 3,323.4 11584.8 4,046.0 2,461.2 60.2 128.5 55.6 41.6 36.0 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 S MSA’s. Los Angeles-Long Beach. For a description of series, see Mar. 1965 Bulletin, p. 390. All data shown here are revised. For description of revision, see Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ U.S. CURRENCY A-15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939.................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941.................... 11'160 8,120 751 695 44 ^355 2,731 2^545 3.044 724 1,433 261 556 24 46 1945.................... 28’515 20'683 1,274 1,039 73 2'313 6,782 9^201 7'834 2,327 4’220 454 801 7 24 1947.................... 28,868 20,020 1'404 1,048 65 2'110 6,275 9319 8,850 2'548 5^070 428 782 5 17 1950.................... 27'741 19,305 1'554 1,113 64 2'049 5,998 8'529 8,438 2'422 5,043 368 588 4 L2 1955.................... 31,158 22’021 1,927 1,312 75 2,151 6,617 9,940 9,136 2'736 5^641 307 438 3 12 1958.................... 32’193 22,856 2^182 1,494 83 2 J86 6^624 10,288 9,'337 2’792 5,886 275 373 3 9 1959.................... 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960.................... 32'869 23^521 2,427 1,533 88 2; 246 6,691 10,536 9,348 2'815 5,954 249 316 3 10 1961.................... 33'918 24'388 2,582 1,588 92 2^313 6,878 10'935 9’531 2'869 6,106 242 300 3 10 1962.................... 35'338 25'356 2^782 1,636 97 2,375 7,071 11^395 9’983 2,990 6,448 240 293 3 10 1963.................... 37'692 26,807 3^030 1,722 103 2'469 7,373 12;109 10’885 3'221 7,110 249 298 3 4 1964.................... 39'619 28,100 3'405 1,806 ill 2,517 7,543 12,717 11’519 3'381 7^590 248 293 2 4 1965.................... 42^056 29'842 4^027 1 ,908 127 2^618 7,794 13'369 12'214 3'540 8,135 245 288 3 4 1966—Dec........... 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967—Jan............ 43,363 30,532 4,461 1,939 137 2,599 7,730 13,667 12,831 3,629 8,673 239 283 3 4 Feb........... 43'585 30'758 4'481 1,933 137 2,612 7,840 13,755 12 *,827 3,622 8,677 239 282 3 4 Mar......... 43i583 30,753 4,518 1,939 137 2,599 7,801 13^5912331 3321 8'683 239 281 3 4 Apr.......... 43'730 30,887 4'551 1,948 137 2,607 7,817 13,827 12'844 3'625 8^692 238 282 3 4 44343 31',509 4'600 1,984 137 2'671 7,979 14,138 12’935 3 ’ 660 8,743 238 282 6 6 June......... 44'712 31'684 4,641 1,879 137 2,635 8,035 14,357 13,029 3'699 8'805 238 280 3 4 July........... 44,866 31'774 4,674 1 ,873 137 2’625 7,989 14,476 13,094 3’724 8,844 238 281 3 4 Aug....... 45'071 3U884 4'720 1,878 136 2',628 8,001 14,521 13,186 3,749 8,911 238 281 3 4 45,'031 31'795 4’752 1 ,886 136 2,621 7,949 14,451 13,'236 3*751 8,959 238 281 3 4 Oct........... 45'421 32^095 4^803 1 ,913 136 2,658 8,013 14,572 13325 3’766 9^031 238 283 3 4 Nov.......... 46^463 32,937 4,865 1 ,965 136 2,748 8,266 14'957 13,524 3’832 9,163 239 283 3 4 Dec........... 46,226 33^468 4^918 2,035 136 2,850 8,366 15,162 13’758 3’915 9'111 240 285 3 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation t Total out­ Held by Kind of currency s D ta e n c d . i 3 n 1 g , A a s g s a e i c n u s r t i ty F F . o R r . B F a . n R k . s 1967 1966 1967 gold and Treasury Banks and silver cash and Agents certificates Agents Dec. 31 Nov, 30 Dec. 3! Gold............................................................................ 11,982 (11,480) 2 501 Gold certificates......................................................... (11,480) 3 11,479 I Federal Reserve notes................................................. 44,311 98 2,668 41 ,545 40,831 39,231 Treasury currency—Total......................................;. . 6,784 (374) 744 359 5,681 5,631 5,432 Standard silver dollars............................................ 485 3 482 482 481 Silver bullion........................................................... 450 371 80 Silver certificates..................................................... (374) 2 371 376 558 Fractional coin..................................... 5,441 653 ............3.5..1. 4,436 4,383 3,998 United States notes................................................. 323 11 6 306 304 305 In process of retirement4........................................ 86 86 86 89 Total—Dec. 31, 1967................................................. 563,077 (11,854) 1,344 11,479 3,028 47,226 Nov. 30, 1967................................................. 5 62,960 (12,770) 1,408 12,391 2,698 46,463 Dec. 31, 1966................................................. 5 61,693 (13,243) 1,174 12,672 3,181 44,663 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. 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 Treasury. For explanation of currency notes. reserves and security features, see the Circulation Statement or the Aug. 4 Redeemable from the general fund of the Treasury. 1961 Bulletin, p. 936. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-16 MONEY SUPPLY; BANK RESERVES □ FEBRUARY 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 re o n n c e y n t co D d m e e m p p o o a s n n i e t d n t jus a t d ed ­ 1 Total c C om ur p re o n n c e y n t co D d m e e 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 1 1965—Dec................................................ 166.8 36.3 130,5 146.9 172.0 37.1 134.9 145.2 4.6 170.4 38.3 132,1 158.6 175.8 39.1 136.7 156.9 3.4 1967—jan................................................. 170.3 38.5 131.8 160.8 175.3 38.5 136.8 160.7 4.1 Feb................................................. 171.5 38.7 132.8 163.5 170.6 38.3 132.3 164.0 5.0 Mar......................... 173.1 38.9 134.2 166.1 171.9 38.5 133.4 166.7 4.9 Apr................................................ 172.7 39.1 133.6 168.1 173.6 38.7 134.9 168.8 4.8 May............................................. 174.5 39.2 135.3 170.0 171.1 38.9 132.2 170.8 6.5 June............................................... 176.2 39.3 136.8 172.4 174.3 39.3 135.1 173.0 3.9 July................................................ 177.9 39.5 138.4 174.6 175.8 39.6 136.2 175,1 5.6 Aug.............................................. 179.1 39.6 139.6 177.2 175.9 39.6 136.2 177.7 4.3 Sept................................................ 179.2 39.8 139.5 178.9 178.4 39.8 138.6 178.9 5.0 Oct................................................ 180.3 39.9 140.3 180.8 180.6 40.0 140,6 180.3 6.2 Nov......................................... 181.3 40.0 141.2 182.5 182.5 40.4 142.1 181.1 5.2 Dec................................................ 181.5 40.4 141.1 183.8 187.2 41.2 146.0 181.8 5.0 1968—Jan.^.............................................. 182.7 40.5 142.1 183.7 188.0 40.5 147.6 183.5 4.9 Week ending— 1967—DeCi 6...................................... 181.5 40.1 141.4 183.8 185.0 40.9 144.1 181.6 4.8 13.......................................... 181.0 40.3 140.8 184.1 185.5 41 .2 144.4 181.9 3.2 20.......................................... 180,8 40.3 140.5 184.0 187.9 41.2 146.7 181.6 4.7 27.......................................... 181,8 40.5 141.3 183.6 187.8 41.6 146.2 181.7 7.1 1968—Jan. 3....................................... 183.1 40.4 142.7 183.3 191.8 40.9 150.9 182,4 5.5 10?........................................ 182.4 40.5 141.9 183.4 189.7 40.9 148.7 182.7 4.7 17p........................................ 183.2 40.5 142.6 183.6 189.6 40.6 149.1 183,4 3.2 24»....................................... 182.4 40.6 141.8 183.5 185.9 40.3 145.6 183,7 5.9 31p........................................ 181.7 40.5 141.3 184.2 184.5 39.9 144.7 184.6 5.8 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 daily 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 seasonally adjusted Member bank reserves 1 re D se e r p v o e s r it e s q s u u ir b e j m ec e t n to ts 2 Member bank reserves1 re D se e r p v o e s i r t e s q s u u ir b e j m ec e t n to ts 2 Period Total N bo o r n ­ ­ qu R ir e e ­ d Total T a i n m d e v P a r t i e ­ G U o . v S t . , Total N bo o r n ­ ­ qu R i e re ­ d Total T a i n m d e v P a r t i e ­ G U o .S v . t, rowed savings demand demand rowed savings demand demand 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 24.32 271.1 147.0 118.5 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....... 24.62 24.36 24.40 272.9 149.9 118.6 4.4 25.26 25.02 24.92 275.9 148, I 123.3 4.5 1968—Jan.p. .. 25.01 24.71 24.70 274.8 149.9 119.5 5.3 25.51 25.28 25.14 278.3 149.5 124.5 4.4 1 Averages of daily figures. Data for 1968 adjusted to eliminate effect and demand balances due from domestic commercial banks. Effective June of increase in reserve requirements made effective Jan. 22, 1968. Data 9, 1966 .balances accumulated for repayment of personal loans were elim­ prior to 1968 reflect percentage reserve requirements made effective Mar. inated from time deposits for reserve purposes. 16, 1967. , 2 Averages of daily figures. Deposits subject to reserve requirements in­ Note.—Back data for the period 1947 to date may be obtained from clude total time and savings deposits and net demand deposits as defined the Banking Section, Division of Research and Statistics, Board of Gover­ by Regulation D. Private demand deposits include all demand deposits ex­ nors of the Federal Reserve System, Washington, D. C. 20551. cept those due to the U.S. Govt., less cash items in process of collection Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ BANKS AND THE MONETARY SYSTEM A-17 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date c u u ry r­ U.S. Government securities li i a ti b e i s l ­ Total Ca a p n i d t al Gold s r t o e i a n n u n g c t d ­ y ­ Total n L e o t a L ns , 2 Total C a o n m d l. R Fe e d se e r r v a e l Other3 O r s i e t t h i c e e u s r ­ 2 ca a n p n e it d t a l, c d u e r a p r n o e d n s i c ts y c m o n a u i e c s n t ­ c t . s , savings 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 J82 5'586 333,203 189,433 103,273 69’068 33J52 653 40'497 354,371 323,251 31,118 1966—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 IQ67—Feb. 22.................. 13,100 6,400 420,700 256,300 107,300 61,300 44,700 1 ,400 57,200 440,300 396,900 43,400 13,100 6'500 426'100 259 J00 107,700 62,500 44 J00 700 58,700 445'700 403,500 42’200 Apr. 26.................. 13 100 6'600 430’600 262 100 107'600 60,600 45 400 I 500 61'000 450’300 406'900 43*400 May 31.................. 13 J00 6,600 432 J00 263,000 107 JOO 60,300 46,100 1 400 62’000 452 JOO 408,300 44 200 June 30.................. 13 110 6,612 439,966 268’967 106,752 58 537 46 718 1 497 64 247 459’688 416,122 43 J67 26.................. 13 100 6,600 442 600 268 200 109,800 61 J00 46 900 1 400 64'600 462’300 417 800 44 500 Aug. 30.................. 13,000 6,700 445,600 268,500 111,200 63 500 46,200 1 JOO 65,900 465,300 418 JOO 46,700 Sent. 27.................. 13,000 6'800 451,200 272,000 112 J00 64 500 46,700 I ,400 66,600 470’900 424,400 46 JOO 25 p................ 13’000 6 J00 454'700 272 400 115 000 66 600 47'100 1 200 67 300 474’500 428'300 46’200 29P.....1.2.. ..9..0.0... 6 J00 458,000 273 000 117 100 67’300 48 500 1 ’300 68'000 477 800 431 300 46 J00 27 rP............... 12 J00 6 JOO 465,100 279,200 117,200 66'900 49,200 1,200 68,700 484,300 438*600 45,700 1968—Jan. 31 p................ 12,000 6,800 465,300 278,600 116,700 66,400 49,100 1,200 70,000 484,100 438 JOO 45,500 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n n u s c i k r d y ­ s e d j , u e m s D p a t a o d e e n s d ­ ­ d i t s 5 Total o b r u C e a t n n u s c i k r d y ­ s e d ju m e s D p a t a d e o e n d s ­ ­ d i t s 5 Total b m C a e n o r k c m s ia ­ l 1 b s M a a v n u i k t n u s g a s l 6 S P t a S o e v y m s i s t n a ­ 3 g l s e n F i e g o t n r­ , 7 T h c i r u n o a e r g s l a y d h s s ­ ­ s b c a a v a o A n n i m n d t k g l s , s B F A a .R n t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 IJ36 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 1966—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—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 JOO 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 JOO 1,400 6,700 800 May 31... . 173,300 38,600 134,700 171,200 38 JOO 132,700 228,900 171 JOO 57,300 100 1 ,900 I ,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 I JU July 26.. . . 173,500 38,500 135,000 173,300 38 JOO 134,700 233,600 175,300 58,300 1,800 1,500 6,200 1 JOO Aug. 30.. . . 175 J00 38,'400 136 J00 173,500 38 J00 134,'900 236,500 177*900 58 J00 1 '900 1 J00 3 JOO 1 JOO Sept. 27.... 176 JOO 38 J00 138,000 175 JOO 38 J00 136,800 237 J00 178 J00 59,200 1 JOO 1 J00 7,300 711 Oct. 25p. 177,200 39 J00 138,100 177'900 39’000 138'900 239 J00 179,800 59,300 1 '900 1 JOO 6 JOO 900 Nov. 29p... 178 J00 39,000 139,300 180,700 39 J00 141 J00 240 JOO 180,800 59 J00 I ,900 1 JOO 5 JOO 1,800 Dec. 27 rP.. 181'000 39 J00 141 JOO 186 J00 40’400 146'200 241 JOO 181 J00 60 JOO 2 J00 1 JOO 6 JOO 400 1968—Jan. 3Ip... 180,200 39,900 140,300 182,500 39,300 143,200 244,500 183,800 60,600 1 ,900 1,400 7,200 1 JOO 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 $400 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 □ FEBRUARY 1968 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Cash T l o ia t ­ al Interbank3 Other Bor­ c T a o p t i a ta l l N b u e m r ­ Cla a s n s d o d f a b te ank Total Loans assets3 bil a i n ti d es Total3 Demand r i o n w gs ­ co a u c n ­ ts ba o n f k s 1. 2 G U o .S vt . . Oth 2 er c c o a a u p c i n ­ t t a s l 4 m D a e n ­ d Time U.S. Other T 1 im . 5 e Govt. All banks: 1941—Dec. 31 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31.. 140,227 30,361 101,288 8,577 35,415 177,332 165,612 14,065 105,935 45,613 227 10,542 14.553 1947—Dec.316, 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 6611,948 14,714 1966—Dec. 31 . 381,684266,022 60,91654,745 70,085 464,376407,637 19,770 968 4,999 167,821 214,078 4,929 36,926 14,271 1967—Jan. 25, 379,860263,530 60,68055,65059,570451,390392,970 16,050 1,110 4,680153,470217,660 7,01036,910 14,266 Feb. 22, 380,920262,430 61,30057,19061,260454,340394,860 16,640 1,180 6,200 150,490220,350 6,74037,140 14,260 Mar. 29. . 387,050265,860 62,47058,72058,500457,800399,140 16,350 1,350 5,520 151,510224,410 6,270 37,380 14,264 Apr. 26.. 389,660268,040 60,63060,99061,450463,590404,530 16,560 1,350 6,440 154,430225,750 6,64037,440 14,262 May 31. . 391,880269,630 60,26061,99064,810469,530409,52017,520 1,370 4,160 157,450229,020 7,08037,800 14,246 June 30. . 396,754273,970 58,53764,247 66,210476,268417,790 18,030 1,469 5,159 161,138231,995 5,208 38,217 14,247 July 26. . 401,010274,930 61,51064,57063,150477,020416,120 17,020 1,480 5,920 157,800233,900 6,91037,940 14,247 Aug. 30. . 404,280274,870 63,51065,900 59,840476,930414,950 16,750 1,550 3,640 156,220236,790 6,520 38,330 14,245 Sept. 27.. 409,200278,140 64,50066,56062,300484,480422,660 17,040 1,530 7,020 159,300237,770 6,47038,160 14,244 Oct. 25 *. 412,380278,430 66,63067,32062,300487,590425,670 17,170 1,430 6,680 161,030239,360 6,14038,650 14,236 Nov. 29*. 414,960279,740 67,25067,97062,650490,560427,610 16,970 1,340 4,980 163,730240,590 6,92038,890 14,240 Dec. 27 r* 422,760287,210 66,86068,69072,840509,010444,150 19,500 1,320 6,630 175,120241,580 8,50038,890 14,222 1968—Jan. 31* 420,950284,530 66,44069,98067,440 502,310438,740 17,530 1,320 6,960 168,210244,720 6,820 39,330 14,219 Commercial banks: 1941—Dec. 31. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 349 15,952 23 7,173 14,278 1945—Dec. 31. 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14.065 105,921 30,241 219 8,950 14,011 1947—Dec. 316 116,284 38,057 69,221 9 ,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31. 322,661 217,726 56,16348,77269,119403,368352,287 19,770 967 4,992 167,751 158,806 4,85932,054 13,767 1967—Jan. 25, 320,320214,970 56,00049,35058,600389,820337,320 16,050 1,110 4,680 153,410 162,070 7,01032,050 13,762 Feb. 22, 320,890213,600 56,60050,69060,220392,220338,870 16,640 1,180 6,200 150,430 164,420 6,74032,240 13,756 Mar. 29. 326,570216,750 57,83051,99057,360395,100342,400 16,350 1,350 5,520 151,450 167,730 6,270 32,470 13,760 Apr. 26, 328,830218,730 56,15053,95060,380400,610347,590 16,560 1,350 6,440 154,370 168,870 6,64032,580 13,758 May 31, 330,400219,880 55,83054,69063,710405,880352,140 17,520 1,370 4,160 157,380 171,710 7,080 32,880 13,743 June 30 334,857223,952 54,23356,671 65,059412,118 359,531 18,029 1,468 5,152 161,048 173,833 5,16633,285 13,744 July 26 338,570224,780 57,11056,68062,070412,380357,750 17,020 1,480 5,920157,730 175,600 6,910 33,030 13,746 Aug. 30. 341,230224,340 59,14057,75058,810411,730356,250 16,750 1,550 3,640 156,150 178,160 6,520 33,360 13,744 Sept. 27. 345,780227,430 60,09058,26061 ,300418,910363,390 17,040 1,530 7,020 159,230 178,570 6,470 33,190 13,743 Oct. 25 * . 348,810227,420 62,37059,02061,300421,870366,250 17,170 1,430 6,680160,940 180,030 6,14033,680 13,735 Nov. 29 *, 350,950228,460 62,85059,64061,730424.500367,950 16,970 1,340 4,980 163,640 181,020 6,92033,890 13,739 Dec. 27*. 358,560235,720 62,54060,30071,840442.670,383,840 19,500 1 ,320 6,630 175,030 181 ,360 8,50033,910 13,721 1968—Jan. 31p 356,370232,690 62,22061,46066,420435,570378,030 17,530 1,320 6,960 168,120 184,100 6,82034,350 13,717 Member banks: 1941—Dec. 31 43,521 18,021 19,539 5,961 23,123 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31 107,183 22,775 78,338 6,07029,845 138,304 129,670 13,576 6422,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 97,846 32,628 57,914 7,30432,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31 263,687 182,802 41 ,92438,96060,738 334,559291,063 18,788 794 4,432 138,218 128,831 4,618 26,278 6,150 1967—Jan. 25, 261,583 180,244 41,773 39,56651,387 322,412277,460 15,228 937 4,161 125,481 131,653 6,63826,285 6,137 Feb. 22, 262,135 178,958 42,40440,77352,973 324,753279,014 15,828 1,006 5,506 123,124 133,550 6,42626,453 6,130 Mar. 29. . 267,086 181,604 43,54541,937 50,276327,040281,903 15,547 1,172 4,857 124,096 136,231 6,04426,639 6,129 Apr. 26 . 268,466 182,821 42,001 43,64453,487 331,864286,486 15,742 1,172 5,899 126,642 137,031 6,40026,749 6,127 May 31, 269,654 183,480 41,90044,27456,487336,422290,441 16,716 1,194 3,629 129,570 139,332 6,765 27,009 6,113 June 30 . 273,266 186,814 40,63645,81657,391 341,290296,548 17,167 1,314 4,580 132,546 140,942 4,92027,237 6,108 July 26, . 276,381 187,536 42,95745,888 55,166341,784294,976 16,187 1,326 5,286 129,674 142,503 6,62527,061 6,108 Aug. 30, 278,259 187,130 44,41646,713 52,060340,576293,115 15,891 1,393 3,128 128,086 144,617 6,20927,318 6,100 Sept. 27. 281,993 189,870 45,00347,12054,477346,853 299,334 16,162 1,377 6,318 130,683 144,794 6,141 27,233 6,095 Oct. 25 284,341 189,676 46,96747,69854,470349,107301,584 16,284 1,275 6,051 132,075 145,899 5,80827,575 6,086 Nov. 29. . 285,700 190,515 47,091 48,09454,809 350,888302,689 16,082 1,189 4,356 134,283 146,779 6,45627,734 6,083 Dec. 27, . 292,480 196,949 46,855 48,67663,931 367,197 316,793 18,541 1,164 5,916 144,159 147,013 7,991 27,760 6,071 1968—Jan. 31* . 290,389 194,262 46,57949,54859,102 360,773 31 1 ,534 16,668 1,170 6,313 138,263 149,120 6,42728.142 6,066 Mutual savings banks: 1941—Dec. 31. . . 10,379 4,901 3,704 1,774 793 11,804 10,533 5 10,527 1,241 548 1945—Dec. 31. . . 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 7 1,592 542 1947—Dec. 316. . 18 641 4,944 11,978 1,718 886 19,714 17,763 1 3 14 17,745 1,889 533 1966—Dec. 31 . . . 59^023 48,296 4,753 5,973 966 61,008 55,350 ...... 1 7 70 55,271 69 4,871 504 1967—Feb. 22,. . 60,0130 48,830 4,700 6,500 1,040 62,120 55,990 60 55,930 4,900 504 Mar. 29.. . 60,480 49,110 4,640 6,730 1,140 62,700 56,740 60 56,680 4,910 504 Apr. 26 60,830 49,310 4,480 7,040 1,070 62,980 56,940 60 56,880 4,860 504 May 31 . 61,480 49,750 4,430 7,300 1,100 63,650 57,380 70 57,310 4,920 503 June 30 . 61,898 50,018 4,304 7,576 1,152 64,150 58,259 1 7 90 58,161 42 4,932 503 July 26, . 62,440 50,150 4,400 7,890 1 ,080 64,640 58,370 70 58,300 4,910 501 Aug. 30, 63,050 50,530 4,370 8,150 1 ,030 65,200 58,700 70 58,630 4,970 501 Sept. 27. , . 63,420 50,710 4,410 8,300 1 ,000 65,570 59,270 70 59,200 4,970 501 Oct. 25. , . 63,570 51,010 4,260 8,300 1 ,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 r . 64,200 51,490 4,320 8,390 1,000 66,340 60,310 90 60,220 4,980 501 1968—Jan. 31* 64,580 51,840 4,220 8,520 1,020 66,740 60,710 90 60,620 4,980 502 For notes see p. A-21. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 Total assets— Securities Total Interbank 3 Other Cla a s n s d o d f a b te ank Total Lo b an 2 s G U o . v S t . . Ot 2 her a C ss a e s t h s 3 c c b o a i a l a l u p i n i c a t i n d i ­ t ­ e a t s s l 4 Total3 m D a e n ­ d Time U. D S. ema O n t d her Time1 r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N b b a o u n e f m r k s ­ Govt. Reserve city member banks: New York City:7*8 1941—Dec. 31................ 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31................. 26;143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31................ 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31................. 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1 ,016 26,535 17,449 1,874 5,298 12 1967—Feb. 22................. 45,474 34,396 5,115 5,963 12,200 60,537 47,404 4,987 601 1,065 22,547 18,204 2,280 5,443 12 Mar. 29................. 46,506 35,084 5,291 6,131 11,237 60,533 48,061 4,966 736 998 22,862 18,499 1,920 5,450 12 46,656 35,541 4,766 6,349 12,756 62,311 49,602 5,287 726 1,768 23,630 18,191 2,163 5,485 12 May 31................. 46,240 35,151 5,130 5,959 15,394 64,794 51,682 5,954 733 695 25,594 18,706 2,416 5,598 12 June 30................. 47,701 36,441 5,048 6,212 14,688 65,668 52,665 6,183 817 1,021 25,656 18,987 1 ,841 5,604 12 July 26................. 48,380 36,683 5,408 6,289 14,431 65,964 51,953 5,495 836 1,190 24,75419,678 2,536 5,600 12 Aug. 30................. 48,521 36,360 5,634 6,527 12,940 64,698 50,639 5,102 867 574 24,011 20,085 2,140 5,663 12 Sept. 27.. 49,435 36,981 5,599 6,855 13,206 65,951 52,050 5,311 816 1,686 24,506 19,731 1,688 5,680 12 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 6,749 13,106 66,251 52,163 5,254 752 828 24,83620,493 1,946 5,729 12 Dec. 27................. 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 1968—Jan. 31”............... 50,898 38,303 5,607 6,988 15,642 70,187 55,544 5,826 719 1,562 27,530 19,907 1 ,979 5,774 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 1966—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—Feb. 22.................. 11,816 8,428 1,730 1,658 2,609 14,879 11,978 1,268 14 285 5,192 5,219 559 1,194 11 Mar. 29................. 12,266 8,584 2,039 1,643 2,733 15,452 12,223 1,244 11 283 5,184 5,501 951 1,193 11 Apr. 26................. 12,127 8,475 1,886 1,766 2,576 15,176 12,345 1,182 11 370 5,264 5,518 702 1,202 11 May 31................. 11,995 8,426 1,822 1,747 2,691 15,171 12,633 1,319 1! 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 1,615 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 I ,610 2,791 15,556 12,986 1,230 14 432 5,346 5,964 490 1 ,224 11 Oct. 25................. 12,300 8,904 1,652 I ,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 1968—Jan. 31»............... 12,573 8,865 1,752 1,956 2,771 15,931 13,205 1,170 10 427 5,596 6,002 561 1,352 10 Other reserve city:7’8 1941—Dec. 31................. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31................. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31................ 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31................. 95,831. 69,464 13,040 13,32624,228 123,863 108,804 8,593 233 1,633 49,00449,341 1,952 9,471 169 1967—Feb. 22................. 95,797 68,077 13,199 14,521 21,113 120,402 104,520 7,598 327 2,336 42,97851,281 2,957 9,481 168 Mar. 29................. 97,875 68,880 13,724 15,271 19,706121,135 105,418 7,387 361 1 ,825 43,54452,301 2,725 9,589 167 Apr. 26................. 97,913 68,684 13,065 16,16421,543 123,100 107,154 7,290 371 2,334 44,522 52,637 3,050 9,642 166 May 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 17,37421,178 125,666 109,736 7,390 411 2,280 45,45654,199 2,862 9,739 165 Aug. 30................. 101,242 70,004 13,733 17,50520,084 125,091 108,768 7,514 446 1,198 44,751 54,859 2,959 9,792 165 Sept. 27 102,633 71,321 13,926 17,38621,617 128,028 111,366 7,532 478 2,499 45,83455,023 3,304 9,840 164 Oct. 25................. 103,434 71,515 14,409 17,51021,311 128,525 112,050 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 47,335 55,414 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 1968—Jan. 31 p............... 105,141 73,002 14,340 17,79922,782 132,083 115,168 7,609 335 2,751 47,681 56,792 3,10410,069 163 Country member banks:7*8 1941—Dec. 31................ 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31................. 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31................. 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1966—Dec. 31................. 109,518 68,641 22,419 18,45819,004 131,338 117,749 2,392 69 1,474 56,67257,144 308 10,309 5,958 1967—Feb. 22................. 109,048 68,057 22,360 18,631 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 18,892 16,600 129,920 116,201 1,950 64 1,751 52,50659,930 448 10,407 5,939 Apr. 26 111,770 70,121 22,284 19,365 16,612131,277 117,385 1,983 64 1,427 53,22660,685 485 10,420 5,938 May 31................. 112,513 70,729 22,010 19,774 17,238 132,634 118,522 1,966 64 1,405 53,37461,713 633 10,487 5,924 June 30................ 113,972 71,684 21,557 20,731 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 22,433 20,593 16,637 134,452120,410 1,981 69 1,523 54,04862,789 57210,508 5,920 Aug. 30................. 116,244 71,843 23,335 21,066 16,430 135,435 121,040 2,033 69 1,229 54,078 63,631 612 10,637 5,912 Sept. 27.......... 117,676 72,503 23,904 21,269 16,863 137,318 122,932 2,089 69 1 ,701 54,997 64,076 659 10,489 5,908 Oct. 25................. 118,889 72,777 24,463 21,649 16,864 138,574124,039 2,103 106 1 ,511 55,61064,709 660 10,746 5,901 Nov. 29................. 120,324 73,245 25,00622,073 17,186 140,289 125,237 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 5,886 1968—Jan. 31*............... 121,777 74,092 24,88022,805 17,907 142,572 127,617 2,063 106 1,573 57,45666,419 783 10,947 5,881 For notes see p, A-21, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-20 COMMERCIAL AND MUTUAL SAVINGS BANKS □ FEBRUARY 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 l n a l k s d s a a o t n e f d Total Lo 1 a , n 2 s U.S. Other as C s a e s ts h 3 c b a i a l a l p i n i c a t i d i ­ t ­ e a s l Total 3 De­ Time Demand Time r B i o n o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l b N a b o u n e f m k r s ­ Govt. 2 counts2 mand U.S. Other 1,5 Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,554 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,58027,377 13,486 1965—Dec. 31.. 303,593200,109 59,12044,364 60,327 374,05! 330,323 18,149 923 5,508 159,659 146,084 4,32529,827 13,540 1966—Dec. 31.. 321,473217,379 55,78848,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 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 6.786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 3!.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1964—Dec. 31.. 151,406 96,688 33,40521,312 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 36,880 219,744 193,860 12,064 458 3,284 92,53385,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,75593,642 3,120 18,459 4,799 1967—June 30.. 195,339 132,725 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 22,259 739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,41 1 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,59834,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,351 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 1119 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 1,872 319 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 ! ,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 4:57 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 8,38! 69,092 61,506 983 173 560 29,53230,258 241 5,776 7,617 1967—June 30.. 61,882 37,429 13,597 10,855 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 12 10,351 1 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12'207 1 2 12 12,192 1'252 194 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 I 6 445 50,424 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. 316 5,957 1,384 3,813 760 211 6,215 5'556 1 2 5’553 637 339 1964—Dec. 31.. 7,005 4,852 1,678 475 111 7,195 6,387 6 6,381 670 178 1965—Dec. 31.. 7,526 5,325 1,710 491 113 7,720 6'874 1 8 6'865 1 706 177 1966—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

FEBRUARY 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,2 Loans1,2 Total*,2 Loans*,2 G U o . v S t . . Other2 G U o . v S t . . Other 2 1959—Dec, 31............................................................ 185.9 107.5 57.9 20.5 189.5 110 0 58.9 20 5 I960—Dec. 31............................................................ 194.5 113.8 59.8 20.8 198,5 116.7 61 0 209 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—Dec. 31............................................................ 267.2 167.7 60.7 38.7 273.9 172.1 63 0 38 8 1965 Dec. 31............................................................ 294.4 192.4 57.3 44,8 301.8 197.4 59 5 449 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 56.2 540 May 31............................................................ 324.6 213.5 56.1 55.0 323.6 213 1 55 8 54 7 June 30........................................................... 325.6 213.9 55.4 56.3 329.5 218.6 54.2 567 July 26......................................................... 332.4 217.1 58.8 56.5 331 .8 218.0 57.1 56 7 Aug. 30........................................................... 337.3 218.2 61.8 57.3 334.2 217.3 59.1 57.8 Sept. 27 p........................................................... 339.5 220.2 61.6 57.7 338.8 220.4 60.1 58 3 Oct. 25 p.......................................................... 342.6 221.8 62.3 58.6 341.6 220.2 62.4 59.0 Nov, 29 p......................................................... 344.3 222.3 61.8 60.2 344.0 221.5 62.9 59 6 Dec. 31 p........................................................... 344.4 224.0 60.0 60.4 353.1 229.6 62.9 60. 5 1968—Jan. JI".......................................................... 348.4 227.2 59.1 62.1 349.5 225.8 62,2 61.5 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. 3! 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 All commercial.................................... 1,150 1,223 1,272 All member (cont.)— Insured ......................................... 1 150 1 ’223 1,271 Other reserve city....................... 338 370 389 National member ... .... ’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-17—A-19; 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 $3 7,000 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 are 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 6 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. 7 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 □ FEBRUARY 1968 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For Class of l T oa o n ta s l 1 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 y s i i i e n n s g g in f s in ti a T tu n o t c i i , o a n l s Other, U.S s . e G cu o r v it e ie rn s m <» ent State bank and and funds mer­ Agri- Real to and Other call date invest­ sold, Total cial cul­ es­ in­ Other local secur­ ments etc. 2 3.4 and tur­ To tate ti i- 5 govt, rities 5 in­ al 5 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o e rs Banks Others uals3 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: a 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1964—Dec. 31.. 277,376 175,589 60,217 7,505 5,5422,843 3,491 10 913 43,675 39,8095,15262,991 13,377 19,03930,57433,533 5,263 1965—Dec. 31.. 306,060 2,103 199,555 71,437 8,212 5,2583,231 2,158 13 291 49,30045,468 5,215 59,547 n.a. n.a. n.a.38,655 6,201 1966—Dec. 31.. 323,885 2,544216,405 80,598 8,555 5,821 3,203 2,189 13 30253,95047,943 5,18356,163 n.a. n.a. n.a.41,003 7,769 1967—June 30.. 336,129 3,944221,28084,5399,333 4,5983,326 1 ,784 12 23455,27549,5305,065 54,233 n.a. n.a. n.a.46,8739',799 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,912 21,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 114,274 ......... 37,583 18,012 1,610 823 1,190 114 . .. 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1964—Dec. 31.. 275,053 174,23459,7467,482 5,355 2,794 3,419 10 81243,43639,6275,11262,499 13,275 18,93930,285 33,2945,026 1965—Dec. 31.. 303,593 2,064 198,045 70,887 8,191 5,088 3,172 2,093 13 14849,02645,2905,155 59,120 13,134 13,233 33,85838,4195,945 1966—Dec. 31.. 321,473 2,461 214,918 80,0608.5365,643 3,148 2,131 13 148 53,68647,7705,127 55,788 12,080 13,439 31,53640,76! 7,545 1967—June 30.. 333,742 3,874219,83384,0139,313 4,383 3,273 1 ,701 12 11455,05649,3595,01753,871 8,563 14,653 31,91846,6069,558 Member, total 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 97! 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,05778,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 ......... 32,628 16,962 1,046 811 1,065 113 7,130 4,662 839 57,914 7,803 4,81545,295 4,1993,105 1964—Dec. 31.. 228,497 147,69053,7174,643 5,1422,411 3,250 10 17934,587 32,0244,82448,717 9,932 15,23823,54828,3743,715 1965—Dec. 31.. 251,577 1,861 167,93963,979 5,099 4,915 2,714 2,008 12 475 38,98836,4184,83244,992 9,441 10,10626,367 32,5884,198 1966—Dec. 31.. 264,627 2,119 181,62472,553 5,318 5,3892,660 2,047 12 34942,38437,9254,75741,924 8,567 9,78924,60933,8005,160 1967—June 30.. 274,247 3,377 184,41875,921 5,7374,1752,743 1 ,620 11 35443,13038,9124,63040,636 5,769 10,971 24,855 39,0856,731 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 ......... 7,179 5,361 ....... 545 267 93 I 11 564 238 11,972 1,642 558 9,772 638 604 1964—Dec. 31.. 39,507 27,301 14,189 302,742 623 1,179 2 615 2,546 2,654 1,371 6,178 1,958 1,972 2,248 5,579 449 1965—Dec. 31.. 44,763 412 32,713 18,075 202,866 665 1,010 3 471 3,139 2,928 1,340 5,203 1,538 987 2,876 5,879 556 1966—Dec. 31.. 46,536 109 35,83221,214 173,109 598 1,025 3 265 3,465 2,799 1,209 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 I 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 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 387 29,552 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 57,55521,102 1,095 1,060 986 1,134 4 887 13,611 12,802 1,977 16,326 3,200 5,662 7,463 9,871 918 1965—Dec. 31.. 91,997 471 64,64624,784 1,206 9541,108 635 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 69,017 28,090 1,251 1,084 1,079 684 5 748 16,044 14,375 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 14,548 1,798 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 1,881 707 359 26,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 ......... 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1964—Dec. 31.. 93,759 55,733 14,5563,493 830 599 710 1 730 17,964 15,899 1,04724,341 4,209 7,206 12,925 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 13,805 2,483 1966—Dec. 31.. 110,089 1,161 68,051 17,9383,986 790 761 157 2 175 22,253 20,000 1,307 22,419 3,791 5,917 13,096 15,473 2,985 1967—June 30.. 114,563 1,594 70,681 19,1204,323 591 830 116 1 92822,99620,735 1,383 21,557 2,706 5,915 13,270 16,9263,804 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 24? 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 3,113 343 516 151 817 10,312 9,050 383 14,555 n.a. n.a. n.a. 6,067 2,003 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. 7,203 2,609 1967—June 30.. 61,882 567 36,862 8,618 3,596 423 583 164 879 12,145 10,618 435 13,597 n.a. n.a. n.a. 7,787 3,068 1 Beginning with June 30, 1948, figures for various loan 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 5 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 6 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. 4 Breakdowns of loan investment and deposit classifications are not Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ COMMERCIAL BANKS A-23 RESERVES AND LIABILITIES BY CLASS OF BANK ([n millions of dollars) Demand deposits Time deposits Re­ 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 a r . i n R v t k h e . s s r C c a e o n n u i d c n r y ­ . b m a a w d n e n o i c s t k e t ­ h i s s c 7 j p u m o a s d a t s d e e n i ­ ­ t d d s 8 m D e I s o n t ­ t i e c r 7 ba e F n ig k o n r­ 9 G U o .S vt . . S l g a o o t n c a v a d t t e l . c C c h a o f e e i e n f e r f r c d d i s t k ­ i ’ ­ s, I PC I b n a t n e k r­ G P S U i a o n o a n . s g v v S d t s ­ t a . , l S l g a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a a t u a c p n l ­ i t ­ s etc. 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 9,812 116,635 2,67927,795 1965—Dec. 31.... 17.992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 1,008 263 12,186 134,247 4,47230,272 1966—Dec. 31 ... . 19,069 5,450 15,870 142,104 17,867 1,904 4,992 15,047 7,051 145,653 967 238 13,462 146,3294,85932,054 1967—June 30.... 18,999 4,854 14,524 137,267 16,338 1,691 5,152 15,207 7,527 138,314 1,468 267 15,669 159,1705,16633,285 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 ,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31 ... . 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 HI 826 33,946 61 9,734 1964—Dec. 31 .... 17,581 4,515 14,613 133,336 16,210 1,454 6,487 13,423 5,856 134,764 733 272 9,766 116,147 2,58027,377 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 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414 145,7444,71731,609 1967—June 30.... 18,999 4,839 14,094 136,024 16,185 1,593 5,135 15,108 7,420 137,463 1,399 267 15,614 158,5605,05032,843 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 9,057 108,324 15,604 1,403 5,838 10,293 5,368 112,878 664 239 8,012 95,4252,481 22,901 1965—Dec. 31 ... . 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 236 10,041 109,9254,23424,926 1966—Dec. 31.... 19,069 4,249 9,400 112,920 17,051 1,736 4,432 11,406 6,396 120,417 794 213 10,983 118,5764,61826,278 1967—June 30.... 18,999 3,728 8,686 109,132 15,610 1,557 4,580 11,566 6,857 114,123 I ,314 239 12,747 128,9364,92027,237 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 ... . 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31 .... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1964—Dec. 31.... 3,730 278 180 17,729 4,112 976 1,486 441 2,940 20,515 436 74 677 13,534 1,224 4,471 1965—Dec. 31.... 3,788 310 122 18,190 4,191 1,034 1,271 620 2,937 20,708 522 84 807 17,097 1,987 5,114 1966—Dec. 31... . 4,062 326 201 18,013 5,105 1,265 1,016 608 3,814 22,113 467 83 918 16,447 1,874 5,298 1967—June 30.... 4,397 279 188 17,459 5,072 1,111 1,021 796 4,086 20,774 817 85 1,129 17,772 1,841 5,604 City of Chicago; 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 ....... 288 1945—Dec. 31... . 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31 .... 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1964—Dec. 31.... 1,006 55 150 4,294 1,389 59 396 312 122 4,929 22 5 213 4,361 204 1,056 1965—Dec. 31.... 1,042 73 151 4,571 1,377 59 345 328 126 5,202 39 4 210 4,785 355 1,132 1966—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 I 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 1 2,844 1964—Dec. 31,... 7,680 1,065 2,433 37,047 7,962 326 2,195 3,508 1,238 42,137 134 77 3,840 35,728 841 8,488 1965—Dec. 31.... 7,700 1,139 2,341 37,703 8,091 330 1,773 3,532 1,180 42,380 206 71 4,960 40,510 1,548 9,007 1966—Dec, 31 .... 8,353 1,326 2,517 37,572 8,249 343 1,633 3,708 1,274 44,022 233 57 5,450 44,204 1,952 9,472 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.... 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1964—Dec. 31 .... 1,042 6,054 26',348 765 166 672 3,227 602 22,816 156 33 1,800 21,210 198 4,894 1965—Dec. 31... . 1,093 6,343 28,367 817 155 635 3,404 592 24,653 168 27 2,145 24,322 238 5,345 1966—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 7 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 9 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 □ FEBRUARY 1968 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans 2 For purchasing To financial institutions or carrying securities Loans 1 Wednesday m i _ T l n o a e v o n a n e t n d t a s s s l 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 t a c r d o n i i e a u m a d r l l s ­ ­ ­ A t c u u g r l a r ­ i l ­ U a T n . o S d . b d r e o O a k l e t e h r r s s e r U T .S o . oth O e t r h s er Bank m D s e o s ­ ­ P a e N n r d s o , nbank e R st e a a t l e s i C m 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 e l v u ­ n e a s ­ G c s u o e r v “ i . t - . c s u e r ­ i­ G c s u o e r v ­ i t ­ , c s u e r ­ i­ F ei o g r n ­ c t o i m c ­ f s i a n l a e n s . Other ties ties ties ties m ci e a r l ­ c e o tc s . ., Large banks— Total 1967 Jan. 4......... 191,612 139,742 60,990 1,821 2,109 3,340 73 2, 111 1,590 4,139 6,734 4,336 27,460 15,937 1,153 10,881 2,932 11......... 188,644 137,185 61,031 1,810 2,194 2,813 72 2,072 I ,541 3,194 5,949 4,282 27,432 15,896 1,152 10,694 2,947 18......... 188,468 136,46-1 60,818 1 ,815 1 ,767 3,193 68 2,067 1 ,486 3,303 5,679 4,202 27,409 15,855 1,157 10,595 2,950 25......... 187,429 135,443 60,449 1,810 1 ,933 2,739 70 2,055 I ,475 3,201 5,665 4,160 27,378 15,826 1,123 10,512 2,953 1967 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 1968 Jan. 3......... 210,415 148,611 66,290 I ,942 1 ,254 4,516 115 2,465 1,431 4,645 5,916 4,554 28,988 16,346 1,062 12,274 3,187 10......... 208,078 146,707 65,998 1 ,937 1,815 4,058 98 2,449 1 ,394 3,719 5,581 4,445 28,975 16,301 1,070 12,056 3,189 17......... 207,161 145,032 65,751 I ,944 1,373 3,847 99 2,432 1,360 3,159 5,490 4,431 29,002 16,316 1 ,029 11,987 3,188 24......... 205,292 143,901 65,059 1 ,934 1,197 3,755 97 2,430 1 ,399 3,294 5,352 4,301 29,034 16,292 1 ,048 11 ,897 3,188 31......... 207,222 145,165 64,994 1,927 1 ,971 3,852 105 2,432 1,362 3,403 5,410 4,266 29,035 16,392 1 ,066 12,143 3,193 New York City 1967 Jan. 4.........44,777 34,824 20,584 15 794 2,005 13 584 849 771 2,028 1,061 3,182 1 ,229 771 1,781 843 11 43,819 33,984 20,585 15 830 1,478 1 1 561 832 853 1,751 1 ,041 3,159 1 ,223 762 1 ,725 842 18......... 44,048 34,099 20,444 15 879 1,778 9 557 791 956 1,635 1 ,038 3,146 1 ,217 752 1 ,725 843 25......... 43,923 33,901 20,272 14 907 1,426 9 556 792 1 ,303 1,663 1 ,033 3,121 1 ,220 736 1,692 843 1967 Dec. 6.........47,635 35,525 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 I ,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 1968 Jan. 3......... 49,156 37,366 22,236 12 666 2,826 20 812 698 1 ,340 1,490 1 ,058 3,015 1 ,258 742 2,129 936 10......... 48,461 36,842 22,111 17 1 ,042 2,508 17 777 653 1 ,H9 1,444 1,042 3,002 1 ,251 755 2,041 937 17......... 47,688 36,099 21,976 18 700 2,354 16 775 643 1 ,023 1,445 1,114 2,997 1 ,250 723 2,002 937 24......... 47,063 35,733 21,679 20 576 2,316 16 774 687 1 ,208 1,371 1 ,056 2,992 1 ,250 736 1 ,990 938 31 .......... 47,795 36,319 21,596 20 1,129 2,364 22 773 647 970 1 ,523 1 ,046 2,982 1,253 739 2,194 939 Outside New York City 1967 Jan. 4......... 146,835 104,918 40,406 1,806 1 ,315 1,335 60 1 ,527 741 3,368 4,706 3,275 24,278 14,708 382 9,100 2,089 11......... 144,825 103,201 40,446 1,795 1,364 1,335 61 1 ,511 709 2,341 4,198 3,241 24,273 14,673 390 8,969 2,105 18......... 144,420 102,365 40,374 1,800 888 1 ,415 59 1 ,510 695 2,347 4,044 3,164 24,263 14,638 405 8,870 2, 107 25......... 143,506 101,542 40,177 1,796 1,026 1,313 61 I ,499 683 1 ,898 4,002 3,127 24,257 14,606 387 8,820 2,110 1967 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......... 159,424 109,810 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 1968 Jan. 3......... 161,259 111,245 44,054 1,930 588 1,690 95 1 ,653 733 3,305 4,426 3,496 25,973 15,088 320 10,145 2,251 10......... 159,617 109,865 43,887 1,920 773 1,550 81 1 ,672 741 2,600 4,137 3,403 25,973 15,050 315 10,015 2,252 17......... 159,473 108,933 43,775 1,926 673 1 ,493 83 1 ,657 717 2,136 4,045 3,317 26,005 15,066 306 9,985 2,251 24......... 158,229 108,168 43,380 1,914 621 1 ,439 81 1 ,656 712 2,086 3,981 3,245 26,042 15,042 312 9,907 2,250 31......... 159,427 108,846 43,398 1,907 842 1,488 83 1 ,659 715 2,433 3,887 3,220 26,053 15,139 327 9,949 2,254 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 Total Bills c C t a i e f te i r ­ s ­ No m tes a tu an ri d n g b — onds o p s f o u a l S b n it d t d i a i c t v a e . l s O c t o s h e r e p c a r u . n s r b t d i o o t i n c es k ds s , Total p c C i r o t o o e i l a n c l m f s e e h c s s ­ s Do­ For­ r c C a e o n n u i c d n r y ­ s B e F w r R a . v i n R e t e h k ­ s . s a o s A t s h e l e l t s r Wednesday W i i n t h­ 5 1 y t r o s . A 5 f y t r e s r . w Ta a x r­ o A th l e l r p C ar e o t r i f t c i i f ­ . O se t c h u e ­ r tion b m a e n s k ti s c b e a ig n n k s 1 yr. rants3 rities pation4 Large banks— Total 1967 25,200 5,067 318 3,416 10,335 6,064 2,296 21,046 899 2,429 45,432 22,913 4,597 213 2,775 14,934 8,011 .......Jan. 4 24,728 4,536 317 3,441 10,304 6,130 2,300 21,114 922 2,395 41,178 20,072 4,126 221 2,835 13,924 7,709 11 25,002 4,639 329 3,489 10,411 6,134 2,502 21,146 920 2,434 42,870 21 ,099 4,179 209 2,726 14,657 7,660 18 24,879 4,533 330 3,490 10,403 6,123 2,542 21,078 996 2,491 39,800 17,975 3,900 198 2,680 15,047 7,641 ...2..5.......... 1967 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 I 552 2,622 47,019 23,695 4,245 229 3,076 15,774 9,144 13 28 J 73 5'819 4,026 13,818 4,510 4,083 25 332 I '557 2'621 47,527 23,777 4,326 218 2,990 16,216 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 ...2..7.......... 1968 28,371 6,049 4,142 13 869 4,311 3,953 25 285 1 544 2,651 51,111 25,859 4,738 254 3,074 17,186 9,284 .......Jan. 3 27^824 5’576 4^018 13*825 4,405 3,990 25^374 1 540 2 643 44,729 22,442 4,165 230 2,990 14,902 9,107 10 28^653 6,555 4’015 13 719 4’, 364 3 937 25^339 1 ’556 2’644 48,574 23,867 4,206 237 2,888 17,376 8,920 17 27^928 5341 4^064 13*677 4346 3 901 25,326 1 567 2’669 44,076 20,676 3,981 233 2,913 16,272 8,955 24 28’080 6’023 4’076 13^627 4,354 3,956 25,490 1,696 2,835 47,066 22,765 4,167 236 2,787 17,111 9,567 ............... 31 New York City 1967 4,585 1,521 62 505 1,234 1,263 557 3,921 205 685 12,606 7,589 218 77 362 4,360 2,899 .......Jan. 4 4,454 1 ,379 62 522 1,171 1 ,320 573 3,934 204 670 11,320 7,093 164 92 359 3,612 2,695 11 4,533 1,460 73 545 1,182 1 ,273 596 3,936 205 679 12,772 8,514 180 85 340 3,653 2,675 18 4,601 1,543 74 536 1,198 1,250 633 3,881 214 693 11,375 6,898 155 80 343 3,899 2,671 ............... 25 1967 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 1968 5,441 1,769 788 2,104 780 1,392 4,239 63 655 14,767 8,858 320 119 409 5,061 3,457 .......Jan. 3 5’360 1 '776 796 1 944 844 1 358 4 215 61 625 12,990 8,625 268 105 394 3,598 3,361 10 5311 1 314 776 1 858 863 1 ’315 4'220 58 585 14,693 9,507 289 104 374 4,419 3,186 17 5,193 1 ,714 805 1 *819 855 1,306 4,163 62 606 13,505 8,444 216 108 380 4,357 3,200 24 5’161 1 '708 818 1 J74 861 1 ^327 4,241 88 659 15,251 9,682 259 109 367 4,834 3,525 ...3.1........... Outside New York City 1967 20,615 3,546 256 2,911 9,101 4,801 1,739 17,125 694 1,744 32,826 15,324 4,379 136 2,413 10,574 5,112 ........Jan. 4 20,274 3,157 255 2,919 9,133 4,810 1 ,727 17,180 718 1,725 29,858 12,979 3,962 129 2,476 10,312 5,014 11 20,469 3,179 256 2,944 9,229 4,861 1 ,906 17,210 715 1,755 30,098 12,585 3,999 124 2,386 11,004 4,985 18 20,278 2,990 256 2,954 9,205 4,873 1 ,909 17,197 782 1,798 28,425 11,077 3,745 118 2,337 11,148 4,970 ...2..5.......... 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 4J 17 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 ...2..7.......... 1968 22,930 4,280 3,354 11 765 3 531 2 561 21 046 1 481 1 996 36,344 17,001 4,418 135 2,665 12,125 5,827 ..... Jan. 3 22364 3 300 3^222 11 881 3 561 2’632 21 *159 1 479 2,018 31,739 13,817 3,897 125 2,596 11,304 5,746 10 23,242 4,641 3,239 11 861 3 501 2^622 21 J19 1,498 2 059 33,881 14,360 3,917 133 2,514 12,957 5,734 17 22,735 4,127 3’259 11 858 3 491 2^595 21,163 I 505 2,063 30,571 12,232 3,765 125 2,533 11,915 5,755 24 22,919 4,315 .....3.,.2..58 11,853 3,493 2; 629 21,249 1,602 2,182 31,815 13,083 3,908 127 2,420 12,277 6,042 ............... 31 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-26 WEEKLY REPORTING BANKS □ FEBRUARY 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 polit­ tic polit­ mes­ TotaD IPC ical U.S. com­ Com­ Total? ical tic Com­ d su iv b i ­ ­ Govt. m ci e a r l ­ G e o tc v . t & ., m ci e a r l ­ S in a g v s ­ Other d su iv b i ­ ­ i b n a t n e k r­ G e o tc v . t., m ci e a r l ­ sions banks banks sions banks Large banks— Total 1967 Jan. 4.................. 207,333 117,181 84,444 6,293 3,779 14,839 748 1 ,507 90,152 47,105 29,606 8,330 504 4,222 205 11................... 200,188 109,359 80,796 5,575 1 ,850 13,578 686 I ,437 90,829 46,729 30,498 8,444 556 4,221 202 18.................. 202,182 110,622 80,833 5,572 2,603 13,111 762 1,439 91,560 46,556 31,329 8,362 661 4,289 190 25.................. 198,738 106,193 78,000 5,485 3,395 12,089 668 1 ,440 92,545 46,520 32,119 8,480 715 4,341 195 1967 Dec. 6................... 218,856 115,829 83,800 5,872 2,091 14,646 711 1 ,555 103,027 48,505 38,847 9,326 843 5,065 261 13.................. 220,604 117,393 87,331 5,793 1 ,494 13,915 700 1 ,574 103,211 48,442 38,905 9,504 861 5,059 261 20.................. 224,628 122,123 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 I ,793 102,809 48,647 38,324 9,596 812 4,965 283 1968 Jan. 3................... 230,198 127,277 92,380 6,231 3,818 15,752 764 1,816 102,921 48,864 38,273 9,509 769 5,035 290 10. ................. 221,975 118,564 87,821 6,086 1,639 14,137 724 1 ,653 103,411 48,711 38,906 9,545 773 5,010 288 17.................. 224,395 120,711 87,888 5,787 3,675 14,260 822 1 ,617 103,684 48,591 39,321 9,528 821 4,950 278 24.................. 219,012 114,974 84,074 5,335 4,261 12,883 702 1 ,657 104,038 48,531 39,577 9,619 826 5,024 266 31.................. 224,306 120,128 86,053 6,301 5,467 13,298 695 I ,605 104,178 48,516 39,639 9,635 832 5,064 298 New York City 1967 Jan. 4.................. 46,889 30,348 19,872 389 1,115 3,999 612 1 ,040 16,541 4,616 7,727 726 309 2,974 92 11.................. 44,623 27,912 18,553 269 421 3,720 540 991 16,711 4,580 7,895 756 333 2,967 90 18.................. 46,955 29,889 19,065 332 679 3,787 606 998 17,066 4,560 8,234 683 421 2,987 90 25.................. 45,557 28,150 18,515 256 843 3,639 523 1 ,002 17,408 4,557 8,502 693 456 3,014 95 1967 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 1968 Jan. 3. ............. 52,745 34,004 22,404 425 1,138 4,253 606 1 ,285 18,741 4,708 9,214 759 523 3,290 177 10.................. 50,448 31,517 20,880 395 365 4,041 573 1 ,130 18,931 4,692 9,436 763 517 3,279 173 17.................. 51,498 32,653 20,792 388 854 4,364 663 1,118 18,845 4,688 9,433 717 558 3,197 173 24.................. 49,778 30,970 20,017 302 961 3,942 547 1,146 18,808 4,686 9,397 728 563 3,199 156 31.................. 52,362 33,677 21,246 468 1,377 4,347 545 1,097 18,685 4,690 9,221 749 565 3,227 154 Outside New York City 1967 Jan. 4.................. 160,444 86,833 64,572 5,904 2,664 10,840 136 467 73,611 42,489 21,879 7,604 195 1 ,248 113 11................... 155,565 81,447 62,243 5,306 1,429 9,858 146 446 74,118 42,149 22,603 7,688 223 1 ,254 112 18................... 155,227 80,733 61,768 5,240 1,924 9,324 156 441 74,494 41 ,996 23,095 7,679 240 1 ,302 100 25................... 153,181 78,043 59,485 5,229 2,552 8,450 145 438 75,137 41,963 23,617 7,787 259 1 ,327 100 1967 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 1968 Jan. 3................... 177,453 93,273 69,976 5,806 2,680 11,499 158 531 84,180 44,156 29,059 8,750 246 1,745 113 10................... 171,527 87,047 66,941 5,691 1 ,274 10,096 151 523 84,480 44,019 29,470 8,782 256 1 ,731 115 17................... 172,897 88,058 67,096 5,399 2,821 9,896 159 499 84,839 43,903 29,888 8,811 263 1 ,753 105 24................... 169,234 84,004 64,057 5,033 3,300 8,941 155 511 85,230 43,845 30,180 8,891 263 1 ,825 110 31.......... 171,944 86,451 64,807 5,833 4,090 8,951 150 508 85,493 43,826 30,418 8,886 267 1,837 144 For notes see p. A-27. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 d i a t i l e s Total T lo o a t n a s l Demand La o rg f e d e c p er o t s if i i t c 1 a o tes Wednesday B F F a r . o n R m k . s o F t r h o e m rs a c c a c p o i u ta n l t s ad l ( j o n u a e s n t t ) e s , d 8 a a d ( n j n u d e s t t i ) e n , d ­ , a d d e j p u o st s e it d s 9 Total Issued Issued vestments s issued to IPO’s to others Large banks— Total 1967 126 7,691 10,686 19,219 245,055 135,603 187,473 75,650 16,010 10,722 5,288 384 6,785 10,922 19,252 237,531 133,991 185,450 73,859 16,455 10,971 5,484 ...........................11 288 6,644 10,666 19,218 238,998 133,161 185,165 73,809 17,034 11,468 5,566 ...........................18 352 5,977 10,578 19,225 234,870 132,242 184,228 72,734 17,856 12,113 5,743 ..........................25 1967 91 7,461 12,786 20,408 259,602 138,938 200,436 75,607 21,097 13,966 7,131 .................Dec. 6 109 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 1968 151 7,631 12,371 20,459 270,810 143,966 205,770 81,848 20,094 13,118 6,976 30 6,986 12,401 20,522 261,914 142,988 204,359 80,346 20,491 13,489 7,002 ...........................10 993 6,412 12,347 20,508 264,655 141,873 204,002 78,909 20,682 13,621 7,061 ...........................17 256 6,000 12,526 20,528 258,322 140,607 201,998 77,154 20,939 13,794 7,145 ....................... .24 733 5,357 12,780 20,679 263,855 141,762 203,819 78,598 20,920 13,696 7,224 ..........................31 New York City 1967 2,980 5,264 5,149 60,282 34,053 44,006 17,645 5,535 3,916 1,619 2,525 5,508 5,178 57,834 33,131 42,966 16,678 5,721 3,997 1 ,724 ...........................11 18 2,198 5,150 5,174 59,495 33,143 43,092 16,909 6,073 4,294 I ,779 ...........................18 5 2,004 5,227 5,175 57,969 32,598 42,620 16,770 6,440 4,575 1,865 ..........................25 1967 2,154 6,664 5,539 65,076 33,869 45,979 16,891 7,460 5,138 2,322 .................Dec. 6 14 1,972 6,915 5,540 65,472 34,323 46,312 17,829 7,455 5,163 2,292 ...........................13 260 I ,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 1968 2,744 6,393 5,498 67,380 36,026 47,816 19,755 6,944 4,815 2,129 13 2,199 6,669 5,483 64,812 35,723 47,342 18,486 7,139 5,036 2,103 ...........................10 380 1,827 6,386 5,476 65,567 35,076 46,665 17,928 7,113 4,979 2,134 ...........................17 1 ,798 6,710 5,482 63,768 34,525 45,855 17,623 7,099 4,979 2,120 ..........................24 206 1,670 6,789 5,544 66,571 35,349 46,825 18,271 6,900 4,767 2,133 ..........................31 Outside New York City 1967 126 4,711 5,422 14,070 184,773 101,550 143,467 58,005 10,475 6,806 3,669 384 4,260 5,414 14,074 179,697 100,860 142,484 57,181 10,734 6,974 3,760 ...........................11 270 4,446 5,516 14,044 179,503 100,018 142,073 56,900 10,961 7,174 3,787 ...........................18 347 3,973 5,351 14,050 176,901 99,644 141,608 55,964 11,416 7,538 3,878 ..........................25 1967 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 1968 151 4,887 5,978 14,961 203,430 107,940 157,954 62,093 13,150 8,303 4,847 17 4,787 5,732 15,039 197,102 107,265 157,017 61,860 13,352 8,453 4,899 ...........................10 613 4,585 5,961 15,032 199,088 106,797 157,337 60,981 13,569 8,642 4,927 ..........................17 256 4,202 5,816 15,046 194,554 106,082 156,143 59,531 13,840 8,815 5,025 ..........................24 527 3,687 5,991 15,135 197,284 106,413 156,994 60,327 14,020 8,929 5,091 ..........................31 1 After deduction of valuation reserves. 2 Individual items shown gross. i o Certificates of deposit issued in denominations of $100,000 or more' J Includes short-term notes and bills (less than 1 year to maturity) issued by States and political subdivisions. 4 Federal agencies only. Note.—Beginning June 29, 1966, coverage of series was changed from 5 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 “All other 7 Includes U.S. Government and postal savings not shown separately. loans,” of “Other securities,” and of ownership of time certificates of 8 Exclusive of loans to domestic commercial banks. deposit in denominations of $100,000 or more. For description of revisions, 9 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 □ FEBRUARY 1968 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1968 1967 1967 1967 2nd 1st Jan. 31 Jan. 24 Jan.17 Jan.10 Jan. 3 Jan. Dec. Nov. IV III II half half Durable goods manufacturing: Primary metals........................... 1,395 1,381 1 ,395 1,393 1,387 19 161 23 184 103 153 287 253 Machinery..................................... 4,311 4,278 4,345 4,314 4,365 21 -56 -5 -248 -382 285 -630 887 Transportation equipment............. 1 ,753 1,754 1 ,801 1 ,826 1,826 -59 -42 -47 -113 -23 -273 -136 -47 Other fabricated metal products. . . 1 ,627 1,668 I ,688 1 ,698 1 ,706 -69 14 -56 -103 -178 266 -281 409 Other durable goods...................... 1 ,913 1 ,913 1,946 1,982 1,997 -83 5 -58 -152 10 118 -142 175 Nondurable goods manufacturing: Food, liquor, and tobacco......... 2,453 2,511 2,621 2,637 2,713 -305 227 219 587 28 -105 615 -577 Textiles, apparel, and leather......... 1 ,690 1,691 1 ,712 1 ,707 1 ,717 -59 -127 -123 -385 -25 86 -410 297 Petroleum refining.......................... 1 ,574 1 ,579 1 ,592 1 ,586 1 ,594 20 53 23 91 -204 180 -113 241 Chemicals and rubber.................... 2,323 2,342 2,348 2,339 2,356 -18 65 -54 29 -112 1 -83 309 Other nondurable goods................ 1 ,682 1 ,724 1 ,723 1 ,738 1 ,729 -46 66 -54 -35 130 108 95 161 Mining, including crude petroleum and natural gas............................ 4,515 4,517 4,534 4,494 4,470 331 466 -21 384 -220 1 164 195 Trade: Commodity dealers............... 1 ,542 1 ,588 I ,619 1 ,626 1 ,619 -63 80 296 501 178 -334 679 -479 Other wholesale.................... 3,015 3,039 3,057 3,056 3,066 -42 70 -2 162 -66 51 96 68 Retail..................................... 3,378 3,284 3,351 3,259 3,355 -148 -54 132 -11 17 157 6 -27 Transportation.................................. 4,442 4,422 4,410 4,428 4,431 35 244 33 333 95 185 428 273 Communication................................. 885 896 911 921 931 -118 66 -32 9 -5 157 4 223 Other public utilities.......................... 2,298 2,352 2,476 2,505 2,517 -118 115 85 110 148 212 258 -109 Construction...................................... 2,500 2,507 2,527 2,535 2,526 -11 -18 -8 -58 -45 117 -103 10 Services................................. 5,056 5,026 5,024 5,034 5,021 78 175 62 304 -83 89 221 -53 All other domestic loans.................... 6,691 6,602 6,603 6,768 6,843 -10 305 '9 224 132 273 356 558 Bankers’ acceptances......................... 1 ,071 1 .072 1,161 1,185 1,125 -132 39 N 12 301 253 -122 554 114 Foreign commercial and industrial loans............................................ 2,710 2,717 2,702 2,7(6 2,728 -30 34 M9 -15 -97 -113 -112 -20 Total classified loans......................... 58,820 58,863 59,546 59,747 60,022 -807 1 ,888 553 2,099 -346 1,492 1,753 2,861 Total commercial and industrial loans 64,990 65,059 65,751 65,998 66,290 -828 2,085 650 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 1-9 10-99 100-499 500-999 1,000 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 Less 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 I6.3 7.3 13.0 6.01 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 6.51-6.99........................... 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 .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......... 5.71 5,66 6,37 6.33 6.22 6.25 5.95 5.88 5,70 5.69 5.63 5.58 7 Other 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 6.38 6.25 6.18 5.96 5.97 5.75 5.78 5.68 5.67 8 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 41/2 1967—Jan. 26-27 5/2-5 3/4 Business Loans was revised. For description of revised series see pp. 721­ 1965—Dec. 6 5 Mar. 27 5/2 27 of the May Bulletin. The weights in computing weighted average 1966—Mar. 10 5’A Nov. 20 6 interest rates on short-term business loans have been revised. June 29 5/4 Bank prime rate was 5 per cent during the period Jan. 1, 1960-Aug. Aug. 16 6 22, i960. 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

FEBRUARY 1968 □ INTEREST RATES A-29 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period p c a o p m e l r . , p p l a a p c e e r d b a a c n c k e e p r t s ­ ’ F f e u d n e d r s a l 3-month bills 5 6-month bills 3 9- to 12-month issues 3- y t e o a r 5 m 4 o - n to th 6 s - 1 m d 3 i o - r e n t c o th t l 6 s y - , 2 90 a n d c a e y s s , 1 rate 3 n R ew at e is o su n e M y a ie r l k d et n R ew at e is s o u n e M y a ie r l k d et B k i e ll t s y ( i m el a d r ) ­ 5 Other 6 issues 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 1967—Jan.................. 5.73 5.50 5.23 4.94 4.759 4.72 4.787 4.74 4.61 4.71 4.71 Feb................. 5.38 5.19 4.88 5.00 4.554 4.56 4.565 4.59 4.57 4.64 4.73 Mar................ 5.24 5.01 4.68 4.53 4.288 4.26 4.243 4.22 4.18 4.35 4.52 Apr................. 4.83 4.57 4.29 4.05 3.852 3.84 3.894 3.90 3.90 4.03 4.46 May.............. 4.67 4.41 4,27 3,94 3.640 3.60 3.808 3.80 3.88 4.09 4.68 June............... 4.65 4.40 4.40 3.98 3.480 3.53 3.816 3.88 4.16 4.40 4.96 July................ 4.92 4.70 4.58 3.79 4.308 4.20 4.798 4.72 4.90 4,98 5.17 Aug............... 5.00 4.75 4.77 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 1968—Jan.................. 5.60 5.46 5.40 4.60 5.081 4.99 5.386 5.23 5.29 5.39 5.53 Week ending— 1968—-Jan. 6.......... 5.63 5.50 5.63 4.54 5.103 4.99 5.593 5.39 5.50 5.62 5.61 13 5.63 5.50 5.43 4.63 5.080 5.06 5,376 5,30 5.28 5.44 5.48 20 5.63 5.50 5.38 4.61 5.072 5.02 5.238 5.25 5.22 5.32 5.52 27...... 5.60 5.48 5.35 4.73 5.068 4.97 5.335 5.16 5.26 5.33 5.55 Feb. 3.......... 5.50 5.25 5.15 4.55 4.846 4.85 4.957 5.00 5.20 5.24 5.54 i Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices, maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio States Total 1 (long­ term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 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 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 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 Anr................................... 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 4.86 4.H 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 P5.6I 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........ 5,44 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 1968—-Jan.................................... 5.18 4.31 4.06 4.66 6.45 6.17 6.84 6.34 6.65 6.47 5.70 3.13 Week ending— 1968—Jan 6............................ 5.23 4.42 4.15 4.73 6.54 6.24 6.96 6.43 6.74 6.57 5.76 3,09 13............................ 5.12 4.31 4.08 4.65 6,48 6.20 6.86 6.35 6.66 6.54 5,63 3.06 20............................ 5.18 4.27 4.03 4.65 6.41 6.14 6,79 6.30 6.61 6.43 5,71 3.09 27............................ 5.20 4.23 3.98 4.62 6.40 6.12 6.80 6,30 6.63 6.39 5.69 3. 19 Feb. 3............................ 5.15 4.18 3.90 4.60 6.40 6.12 6.80 6.31 6.66 6.38 5.69 3.22 ................ Number of issues........................ 10-11 20 5 5 120 30 30 40 40 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ 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 □ FEBRUARY 1968 MORTGAGES: NEW AND EXISTING HOMES SECURITY PRICES (Per cent) (pe B r o $ n 1 d 0 0 p r b ic o e n s d ) Co ( m 19 m 4 o 1 n - 4 s 3 to - c 1 k 0 ) prices Vol­ Contract interest rate on ume Period o i n n Y s F i u e H r l e d A d - F c H o A nv s e e n r t i i e o s nal first F m H o L r B tg B ag s e e s ries Period ( G t l U e o o r . n m S v g . t ) ­ , S l a o t n c a d a te l A C p a A o o te r r A ­ ­ Total d t I r u n ia s ­ l ­ R ro a a i d l­ P u i l u t t i i y c b l ­ ­ (s I h t i h r n a o a o g r f d u e s s ­ ) . New New Existing New Existing 1965............. 83.76 110.6 93.9 88.17 93.48 46.78 76.08 6,174 1966............. 78.63 102.6 86.1 85.26 91.09 46.34 68,21 7,538 1961................. 5.69 5.97 6.04 1967............ 76.55 100.5 81.8 91.93 99.18 46.72 68.10 10,143 1962................. 5.60 5.93 5.99 1963................. 5.46 5.81 5.87 5,84 5.98 1967—Jan... 81.54 106.0 85.9 84.45 89.88 44.48 70.63 9,885 1964................ 5.45 5.80 5.85 5.78 5.92 Feb... 80.73 106,4 86.4 87.36 93.35 46.13 70.45 9,788 1965................. 5.47 5.83 5.89 5.76 5.89 Mar.. 80.96 105,8 85.6 89.42 95.86 46,78 70.03 10,217 1966................. 6.38 6.40 6.47 16.11 16.24 Apr. . 80.24 104.9 85.4 90.96 97.54 45.80 71.70 9,389 67................. 6.55 6.53 6.57 *6.37 *6.41 May.. 77.48 101.1 83.4 92.59 99,59 47.00 70.70 9,933 June.. 76.37 100.2 81.7 91.43 98.61 48.19 67.39 9,666 1966—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 1968—Jan... 73.09 95.6 77.2 95.04 103.11 43.38 68.02 11,947 July.... 6.53 6.50 6.55 6.34 6.33 Aug....... 6.60 6.55 6.55 6,34 6.38 Week Sept....... 6.63 6.55 6.60 6.37 6.37 ending— Oct..... 6,65 6.55 6.60 6.37 6.42 Nov....... 6.77 6.65 6.70 6.37 6.43 1968 Dec..... 6.81 6.70 6.75 *6.45 *6.51 Jan. 6....... 72.55 94.0 76.6 95.77 104.13 43.73 66.96 12,266 13 73.70 95.4 77.0 96.60 104,77 43.88 69.42 13,190 6.81 6.75 6.80 20....... 73.03 95.5 77.6 95.74 103.80 43,63 69.01 12,739 27....... 72.85 96.0 77.3 93.52 101.43 42.76 67.18 10,926 1 New FHLBB series beginning July 1966. Feb. 3....... 73.35 96.9 77.6 92.66 100.45 42.85 66.75 10,045 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 arc computed as succeeding month. The yields are derived from weighted aver­ follows: U.S. Govt, bonds, derived from average market yields in table at bottom of ages of private secondary market prices for Sec. 203, 30-year preceding page on basis of an assumed 3 per cent, 20-year bond. Municipal and mortgages with minimum downpayments and an assumed pre­ corporate bonds, derived from average yields as computed by Standard and Poor’s payment at the end of 15 years. Gaps in the data are due to Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common periods of adjustment to changes in maximum permissible con­ stocks. Standard and Poor’s index. Volume of trading, average daily trading in tract interest rates. The FHA series on average interest rates stocks on the N.Y. Stock Exchange for a 5^-hour trading day. on conventional first mortgages are unweighted and are rounded to the nearest 5 basis points. For FHLBB series, see footnote to table on Conventional First Mortgages, p, 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— Cus­ Month Total firms secured by— chasing or carrying—• tomers’ net securities free other than Other securities credit U.S. Govt. U.S. Other U.S. Other U.S. bal­ se G cu o r v it t i , e s securities se G cu o r v it t i , e s securities se G cu o r v it t i , e s Total C co u l s l t a o te m ra e l r co O ll t a h te e r r a l ances 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—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....... '9,433 101 '7,010 77 2,423 n.a. n.a. n.a. n.a. 2,513 Nov..... '9,495 147 '7,053 79 2,442 n.a. n.a. n.a. n.a. 2,500 Dec....... 10,347 65 7,883 90 2,464 n.a. n.a. n.a. n.a. 2,763 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

FEBRUARY 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 Banks Im­ Ex­ shipped between Total th P r la o c u e g d h P di l r a e c c e t d ­ Others p i o nt r o ts f p r o o r m ts D e o x ll ­ ar points in— dealers 1 ly2 Total O bi w ll n s bo B u il g ls h t O ac w ct n . c F e o i o g r r n r ­ . U S n ta i t t e e s d U S n t i a t t e e d s change U S n ta i t t e e s d c F o o u r n e t i r g i n es 1960.................... 4,497 1,358 3,139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961..................... 4; 686 1’711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962.................... 6,000 2,088 31912 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 1963.................... 6,747 1,928 4'819 2,890 1,291 1,031 260 162 92 1,345 567 908 56 41 1,317 1964.................... 8,361 2,223 6,138 3,385 11671 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 11564 1966..................... 13,279 3,089 10,190 3,603 1,198 '983 215 193 191 2,022 997 829 103 80 1,595 1967—Jan............ 14,718 3,449 11,269 3,601 1,359 1,028 331 73 173 1,996 936 829 78 90 1,668 Feb........... 15,199 3,781 11'418 3,575 1,266 1,004 262 113 201 1,995 918 851 65 82 1,659 Mar.......... 16^034 4,360 111674 3,704 1,366 1,077 290 110 232 1>96 962 921 60 71 1,691 Apr........... 16,249 4,356 11'893 3,’830 1,'356 1,'128 229 166 272 2,035 971 971 55 59 1,773 May.......... 17'067 4,713 121354 3,964 1,339 1147 192 70 348 2,207 949 998 38 46 11933 161150 4'934 11'216 4,131 1'361 1,191 170 136 379 2,254 1,001 1,007 45 39 2,038 July........... 17'044 4,976 12’068 4,116 1^49 11252 297 c78 "324 "2,165 '974 11040 65 41 11996 Aug....... 161816 4'979 11',837 4,103 1,584 l',195 389 "65 c252 "2,203 1,020 989 70 75 1 ,949 Sept.......... 16,220 5'124 11,096 4,146 1,635 1,239 396 "52 c205 "2,254 1,037 991 68 91 1 1958 Oct.......... 16,777 5'186 11'591 4,136 1,822 11298 524 c54 "163 "2,096 1,085 956 51 83 1 1961 Nov,...... 17,147 5’136 12,'011 4,218 1,878 1,376 501 c59 CI51 "2,130 1,095 975 52 124 1,971 Dec........... 17,084 41901 12J83 4,317 1,906 1,447 459 164 156 2,090 1,086 989 37 162 2,042 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— Other l T ia o b t i a l l i ­ Depos­ Other G re e s n er e v r e a l c M om or m tg i a tm ge e n lo ts a n 3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r o a a n r t p d e o ­ Cash assets ge a t n i n e e d s ra l its 2 lia ti b e i s li­ co a u c n ­ ts govt. other1 reserve accts. Number Amount [941............................ 4 787 89 3,592 R6 829 689 11,772 10,503 38 1,231 1945............................ 41202 62 10,650 1.257 606 185 16,962 151332 48 I ^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 42,829 38,277 781 31771 611855 1,654 1962........................... 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 31957 114,985 2',548 1963............................ 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 104,326 2,549 1964............................ 40,328 739 5,791 391 51099 1,004 886 541238 48,849 989 4,400 135,992 2,820 1965 ............................ 44,433 862 5,485 320 5,170 1 1017 944 581232 521443 1,124 41665 120,476 21697 1966—Dec................... 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 88,808 2,010 1967—Jan................... 47,484 1,076 4,679 247 6,053 969 1,062 61,570 55,456 1,259 4,855 88,479 2,013 Feb................... 47,692 1,137 4,700 249 61251 1,041 1,051 62,122 551788 1,428 4,906 90,223 2',05 5 Mar.................. 47,973 1,’136 4,645 246 6 ,'480 11140 1,081 62,'70I 56,’538 1,249 4,914 91,125 2,172 Apr.................. 48,236 11075 41481 243 61803 1,069 1,076 62,982 56,739 1 1381 4,863 88,295 2,242 481493 1 ,'261 41433 235 7,062 11095 1,074 631654 571185 11546 4,923 92,754 2,495 J une................. 48,771 l',226 4,336 249 7,313 1,140 1,108 64',143 57,836 1,379 4,929 95', 187 2,657 July.................. 49,010 11144 41396 246 7,642 1,084 1,116 641639 58,169 1 ,563 4,908 91,559 2,647 49,322 1 ',210 4,367 242 7,910 1,034 1 J 17 651201 58,499 1 ,732 4,969 2,592 Sept.................. 491557 11152 4,406 243 81054 '999 11147 651559 59^66 1 1525 41967 n.a. 21724 Oct................... 49,827 1^169 4,299 228 81080 959 1,134 65,696 59,257 1 ',489 4,950 n.a. 2,710 Nov.................. 50,046 1,243 4,397 222 81107 915 1,130 66,061 59,462 1,597 5,002 n.a. 2,684 Dec................... 50,289 1,197 4,323 220 81166 1 ,003 1,145 66,343 60,107 1 ,253 41983 n.a. 2,523 1 Also includes securities of foreign governments and international Note.—National Assn, of Mutual Savings Banks data; figures are organizations and nonguaranteed issues of U.S. Govt, agencies. estimates for all savings banks in the United States and differ somewhat 2 See note 4, p. 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 □ FEBRUARY 1968 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other assets gages estate loans assets 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 Statement value: 1941...................................... 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945...................................... 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 I960...................................... 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961...................................... 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962...................................... 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4.107 6,234 6,024 1963...................................... 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964...................................... 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965...................................... 158,884 11,679 5, 119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 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,!4l 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—Nov.r......................... 166,231 10,827 4,794 3,120 2,913 68,651 61,201 7,450 64,227 4,846 8,986 8,694 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 3,00! 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 Nov............................ 176,184 10,537 4,642 2,982 2,913 73,934 65,089 8,845 67,097 5,165 9,996 9,455 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 p n er d i o o d f M ga o g r e t s ­ s G e U c o . u S v r t . i , ­ Cash Other 1 a li s a s T b e o i t l s t i a 2 ti — 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 i v d e e s d B m or o r n o e w y e 3 d L p o r a o n c s e s i s n Other c m o l 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 16 1945................... 5,376 2,420 450 356 8,747 7*365 644 336 402 I960................... 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 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 I '849 2,751 1966—Dec......... 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 Mar......... 114,797 8,058 3^544 8,754 135*153 116'414 9,064 5^441 1 ,365 2,869 2,269 Apr......... 115^233 7,950 3*638 8,936 135*757 116^911 9*062 5,027 1'503 3^254 2,699 May........ 1151909 8,072 3,859 9,376 137,216 118^041 9^055 4,630 1,710 3,780 3,081 June........ 116,944 7,987 3,997 9,232 138,160 119,976 9,268 4,559 1,918 2,439 3,250 July......... 117,676 8,378 3,412 9,169 138,635 120,031 9,270 4,456 2,019 2,859 3,420 Aug......... 118*674 8,857 3,127 9,221 139^879 120^677 9,265 4,399 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......... 120'362 9,171 3,040 9,217 141,790 122,'365 9,*256 4,*373 2,213 3,583 3,310 Nov/.... 121,127 9,424 3'068 9,352 142,971 122^947 9,248 4,455 2^24! 4,070 3,287 Dec......... 121,905 9,323 3,416 9,117 143,761 124,559 9,559 4,863 2,280 2,500 3,035 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

FEBRUARY 1968 J FEDERALLY SPONSORED CREDIT AGENCIES A-33 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Asset F s ederal home loa L n i a b b a il n it k i s es and capital (s F M e e c d o o o e r p n t r e d g a r a a l a r g t y N i e o m a n A ti s a o s ) r s n k n a e , l t coo B pe f a o r n a r k t s iv es c in re t F e d r e i m t d e b e r d a a n i l a k te s F b e l a a d n n e k d ra s l End of period v m b a A n e t e o d m c r s e ­ ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h t s B n a o o n n t d e d s s M po d b e s e e m i r ­ t s ­ C s a to p c it k al M l g o ( a A a o g n r ) e s t ­ D n t a e u ( o L n b r t e d e e ) s s n ­ c L a o t ( o o i t A v o a p e ) n e s s r ­ D t e u (L b re ) e s n­ c L o a d ( o u A n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1958............ 1,298 999 75 714 819 769 1 ,323 1,100 510 252 1,157 1,116 2,089 1,743 1959............ 2,134 1,093 103 1,774 589 866 1,967 1,640 622 364 1,391 1,356 2,360 1,986 I960............ 1,981 1,233 90 1,266 938 989 2,788 2,523 649 407 1,501 1,454 2,564 2,210 1961............ 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,43! 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 I ,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—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 I , 363 1,113 3,168 2,944 5,111 4,450 Apr... 4,782 3,451 77 5,066 1,648 1,388 4,459 4,006 1 ,337 1,114 3,301 3,086 5,175 4,450 May.. 4,421 4,004 93 5,050 I ,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 I ,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 Dec... 4,386 2,598 127 4,060 I ,432 1 ,395 5,348 4,919 i ,506 1,253 3,411 3,214 5,609 4,904 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.; lor a listing of these securities, see table below. Loans are gross sheet items are capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks. Bonds, debentures, and notes are valued at par. They in­ for other agencies. clude only publicly offered securities (excluding, for the home Ioan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, DECEMBER 31, 1967 Amount Amount Amount Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions of dollars) of dollars) of dollars) Federal home loan banks Federal National Mortgage Federal land banks—Cont. Bonds: Association—Cent. Bonds: Jan. 25, 1968............. ...5’4 250 Debentures: Mar. 20, 1968.............. ...4'4 111 Feb. 26, 1968............ . .5,35 535 June 12, 1973............... ..41/4 146 May 20, 1968..................5'4 242 Mar. 1, 1968...................43/, 250 Feb. 10, 1977................ • 41/2 198 June 20, 1968.............. ..4 186 Mar. 25, 1968................ . .5.35 400 Aug. 20, 1968..................4'4 160 Apr. 25, 1968................ ...5’/, 625 Oct. 21, 1968............... .5.50 407 May 27, 1968................ •■•S'/z 300 Jan. 20, 1969............. .. 43/4 341 July 25, 1968................ ..5.45 300 Mar. 20, 1969.............. ...434 100 Aug. 26, 1968...................5’/, 500 Banks for cooperatives Apr. 21, 1969.................5.60 250 Nov. 25, 1968...............••■5^ 300 Debentures: July 15,1969.............. ..4'4 130 Jan. 27, 1969................ ...51/2 300 Feb. 1, 1968........... .5.20 '313 July 15, 1969..................434 60 Mar. 25. 1969................ ...5’/, 300 Apr. 1, 1968............... .5.35 r283 Oct. 20, 1969..................41/4 209 May 1, 1968............... .5.65 304 Jan. 20, 1970..................53/4 209 Federal National Mortgage Associa- June 3, 1968............... ..53/4 352 Feb. 20, 1970..................5'4 82 tion—Secondary market opera- Apr. 1, 1970.............. tions Apr. 20, 1970.................6.20 362 July 20, 1970.............. ...5'/, 85 Federal intermediate credit banks May 1,1971..................3<A 60 Discount notes.................. 1,282 Debentures: Sept. 15, 1972.............. ...3’4 109 Jan. 2, 1968...................4.45 *401 Oct. 23, 1972..................5^ 200 Debentures: Feb. 1, 1968...................4.40 397 Feb. 20, 1973-78,....... ...4'4 148 Mar. 11, 1968............... 87 Mar. 4, 1968...................4.50 375 Feb. 20, 1974..................4i/2 155 June 14, 1968................ .. 434 400 Apr. 1, 1968............... .4.85 r35O Apr. 21, 1975.............. ...4% 200 Sept. 10, 1968................ • •■S’/, 350 May I, 1968............... ..5'4 345 Feb. 24, 1976................ ..5 123 Apr. 10, 1969................ .4%, 88 June 3, 1968............... .5.30 r329 July 20, 1976..................5% 150 May 12, 1969................ ...43/4 300 July 1, 1968............... .5.55 285 Apr. 20, 1978..................5'4 150 June 10, 1969................ .6.10 250 Aug. 1, 1968............... ■ ■51/4 366 Jan. 22, 1979................ ..5 285 July 10, 1969................ ■••5'/, 250 Sept. 3,1968............ .5.80 366 Dec. 12, 1969................ . ..6 550 Tennessee Valley Authority Apr. 10, 1970................ ...43/, 142 Short-term notes.......... 200 Sept. 10, 1970................ ...41/, 119 Bonds: Oct. 13, 1970................ ...53/4 400 Federal land banks Nov. 15, 1985. ............. ..4.40 50 Aug. 10, 1971................ ...41/, 64 Bonds: July 1, 1986..................4% 50 Sept. 10, 1971................ ...434 96 Feb. 15, 1967-72..... ■ ■4'4 72 Feb. 1, 1987.............. ...4'/2 45 Feb. 10, 1972................ ...5'4 98 Oct. 1, 1967-70......... -.4% 75 May 15, 1992.................5.70 70 June 12, 1972................ ...4% 100 Jan. 22, 1968............... -.5'/, 161 Nov., 1992................... ■ ..6’4 60 Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-34 FEDERAL FINANCE □ FEBRUARY 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 Net Period rects. Bu n d e g t et T f P u r l n u u d s s s : t g I L o n e v t s r t s a . : ­ 1 E r T e q c o u t t a s a l . l s 2 : 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 4 ­ E p T q a o u y t a t a s l l . s : pa o y r t s. C & (d d h a i i e a r g n b n e e c t g n t e . ) a I g t n L r e v u b e n e y s s . t s s s : t & , L N c d a e e o s s b n h s t : ­ Eq N u e a t ls: Cal. year-—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 1967............ 117,708 45,861 6,581 156,300 131,698 38,654 6,779 163,572 -7,272 14,967 7,248 -103 7,822 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: 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.-Ju ne....... 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 July-Dec........ 51,044 20,531 2,938 68,385 70,043 21,771 3,299 88,515 -20,130 19,275 -234 424 19,085 Month: 1966—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 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 10J3I 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 3J08 279 15J76 12,468 3; 127 I ,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 41067 541 11,032 11,730 3,361 -111 15,202 -4,170 4,733 292 102 4,339 Dec................. 10,616 3,003 861 12,734 10,084 4,262 912 13,434 -699 -14 -350 83 252 Effects of operations on Treasurer’s account Net operating transactions Net financing transactions ca C sh h a b n a g la e n i c n e s Tre (e a n 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 g l c u e it 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 a r c f k n . 3 e c t e i I n G n s e v o U c e v . . s t S 3 t , , . p d g d u i r i e r b o n e b s l c i t s c t T o r H u e t a e s s l i d u d r e y a T c u r c r e o e a r u ’ s n s ­ t Balance B F a . n R k . s a l T a c o n c a a d t x n s . O as n t s e h e t e t s r Fiscal year—1964........ -8,226 1,446 948 1,880 -2,775 5,853 206 -1,080 11,036 939 9,180 917 1965........ -3,435 1,410 -804 1,372 -2,356 5,561 174 1,575 12,610 672 10,689 1,249 1966........ -2,251 -12 -956 4,077 -3,562 2,633 132 -203 12,407 766 10,050 1,591 1967........ -9,869 10,130 -657 420 -10,852 6,314 135 -4,648 7,759 1,311 4,272 2,176 Half year: 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 July-Dec....... -19,000 -1,239 -63 833 234 18,442 -80 -713 7,046 1,123 4,329 1,594 Month: 1966—Dec............ 1,093 -371 -78 767 -166 -92 -60 1,213 6,011 416 4,096 1,499 1967—Jan................. -601 -60 583 76 477 -450 -134 158 6,170 813 3,687 1,670 Feb................ -1,702 2,290 -123 -241 -1,649 756 89 -760 5,410 386 3,299 1,725 Mar................ -304 866 970 -462 -1,082 1,321 -101 1,411 6,821 828 4,430 1,563 Apr............... 4,070 1,061 907 -563 329 -3,145 595 2,064 8,884 1,360 5,415 2,109 May............... -4,626 2,471 -912 285 -4,213 3,087 -649 -3,259 5,626 574 3,469 1,583 June............... 8,173 1 ,819 -1,061 -304 -1,344 -4,667 483 2,133 7,759 1,311 4,272 2,176 July............... -5,131 -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 Dec................ 532 -1,259 -33 413 350 -427 131 -555 7,046 1,123 4,329 1,594 1 Primarily interest payments by Treasury to trust accounts and accumu- 6 Seasonally adjusted data include accelerated corporate tax payments ations 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. J Includes net transactions of Govt.-sponsored enterprises. 4 Primarily (I) intragovt, transactions, (2) noncash debt, (3) clearing Note.—-Based on Treasury Dept, and Bureau of the Budget data. accounts. 5 Includes technical adjustments not allocated by functions. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 he I i n l t d h d ­ ivid O u t a h l er C r o a r t p e o­ Total a L b n i a d q c u c t o o o r ­ H w ig ay h­ Total F R a I n . C R d A . e U m n p - l . E a g s n t i a f d t t e t C o u m s s ­ r m e a I p e n n n a d t y . t s ­ f R un e d ­ s Other 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 36,840 16,820 26,131 14,793 5,921 3,782 22,138 17,833 3,817 2,746 1 ,478 2,097 6,030 2,686 1966... 134.480 42,811 18,486 30,834 13,398 5,888 4,037 25,527 21,243 3,773 3,094 1,811 2,303 7,256 3,472 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: 1966—Jan.-June.. 79,456 22,847 14,680 19,942 6,352 2,825 1 ,969 15,926 13,500 2,166 1,820 913 1 ,007 6,194 2,163 July-Dec... 65,681 24,641 3,983 12,045 6,762 3,105 2,313 13,789 11,969 1 ,569 1,258 1 ,017 1,493 1,142 1,835 1967—Jan.-June.. 87,915 25,880 14,867 22,873 7,352 3,051 2,339 19,068 16,731 2,088 I ,756 955 1 ,250 8,440 2,354 July-Dec... 68,385 27,192 4,150 11,345 7,146 n.a. 2,253 14,629 13,056 1 ,333 1,350 1,034 1 ,363 1 ,263 1,439 Month: 1966—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 34 8 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.......... 8,719 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 1,31 1 666 383 3,076 2,625 409 193 193 213 197 191 Dec....... 12,734 4,477 351 4,224 1,161 n.a. 339 1,682 1,583 67 210 160 353 172 288 Cash payments to the public Period Total 5 t f i N e o d 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 e a a c ­ t l e ­ s t m C r a a o e n n r m d s c p e ­ . H d c in o e o g v m u e & s l 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 e ra v n l t ­ . Fiscal year—1964....... 120,332 54,514 3,837 4,171 5,416 2,774 6,545 1,674 27,191 1,299 6,107 8,011 2,221 1965....... 122,395 50,790 4,794 5,093 5,142 2,921 7,421 908 28,191 1,497 6,080 8,605 2,341 1966....... 137,817 58,464 4,463 5,933 4,114 3,229 6,784 3,425 33,249 2,780 5,556 9,215 2,404 1967....... 155,142 71 ,843 4,413 5,426 4,159 3,522 7,102 -I ,723 39,002 3,286 6,978 10,371 2,64! Half year: 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 July-Dec....... 88,515 39,251 2,856 2,292 3,154 2,037 4,404 2,082 21 ,713 1 ,471 3,487 4,867 1 ,380 Month: 1966—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 Dec............... 13,434 6,130 408 391 258 292 594 309 3,643 -52 465 521 238 1966« 19676 1966 1967 Item I 11 III IV I II HI IV I II III IV I II III IV Seasonally adjusted Not seasonally adjusted Cash budget: Receipts.......................... 33.4 37.1 37,3 38.4 39.2 38.5 38.5 38.8 33.3 46.2 34.6 31.1 38.0 49.9 35.9 32.5 Payments............................ 36.6 35.8 39.7 38.6 38.8 38.1 43.4 43.3 34.6 36.2 41.3 38.8 36.7 38.4 45.1 43.5 Net................................. -3.2 1.3 -2.5 -.2 .4 .4 -4.9 -4.5 -1.3 10.0 -6.7 -7.7 1.4 11.5 -9.2 -10.9 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-36 U.S. GOVERNMENT SECURITIES □ FEBRUARY 1968 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 Total Total Marketable Nonmarketable End of period gross gross Con­ Special debt 1 d d e ir b e t c t 2 Total Total Bills C c e a r t t e if s i­ Notes Bonds 4 b v o ib e n l r e d t­ s Total 5 b S i o n a n g v d s ­ s issues 6 & notes 1941—Dec.................................. 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945—Dec.................................. 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec.................................. 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29 0 1959—Dec................................... 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84.8 7.1 48.9 48.2 43.5 I960—Dec................................. 290.4 290.2 242.5 189.0 39.4 1 8.4 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 May............................... 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 1968—Jan....................................| 346.8 346.3 286.9 229.3 72.7 ........6..1....4 95.2 2.6 55.0 51.7 55.9 1 Includes non-interest-bearing debt (of which $260 million on Jan. 31, 5 Includes (not shown separately): depositary bonds, retirement plan 1968, 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 1954, armed forces leave bonds; before 2 Excludes guaranteed securities. 1956, tax and savings notes; and before Oct. 1965, Series A investment 3 Includes amounts held by U.S. Govt, agencies and trust funds, which bonds. totaled $18,775 million on Dec. 31, 1967. 6 Held only by U.S. Govt, agencies and trust funds. 4 Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. Note,—Based on Daily Statement of U.S. Treasury. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E pe n r d io o d f T g d r o e o t b s a t s l ag G t U e a r o n n u .S v c d s i t t . e , s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l s M b av a u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a a d t t e s l . Savi I n n g d s i vidu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 i O m t n o v t i r h s e s c e s . ­ r 2 funds bonds securities 1941—Dec............... 64.3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945—Dec............... 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947—Dec............... 257.0 34.4 22.6 200.1 68.7 12,0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 1959—Dec............... 290.9 53,7 26,6 210.6 60.3 6.9 12.5 21.4 18 0 45.9 23.5 12.0 10.1 1960—Dec............... 290.4 55.1 27.4 207.9 62.1 6,3 11.9 18.7 18,7 45.6 20.5 13.0 11.2 1961—Dec............... 296.5 54.5 28.9 213,1 67.2 6.1 11.4 18.5 19.0 46.4 19.5 13.4 11.6 1962—Dec............... 304.0 55.6 30.8 217.6 67,2 6.1 11.5 18.6 20.1 46.9 19.2 15.3 12.7 1963—Dec............... 310,1 58.0 33.6 218.5 64.3 5.8 U.3 18.7 21.1 48.1 20.1 15.9 13.3 1964—Dec............... 318.7 60.6 37.0 221.1 64,0 5.7 11.1 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—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 57.4 4.6 9.3 14.7 25.0 50.3 24.3 14.1 16.9 Mar.............. 331.5 70.7 44.9 215.9 58,1 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 57.2 4.3 9.0 12.9 25.2 50.5 22.3 15.0 16.1 May............. 331.4 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 Aug............... 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 Nov.............. 345.6 76.2 48.9 220,5 63.5 4.2 8.7 13.1 24.5 51 .0 22.8 16.2 16.5 Dec............... 345.2 76.0 49.1 220.1 63.9 4.2 8.7 12.5 25.0 51.1 22.9 15.7 16.3 1 Includes investments of foreign balances and international accounts Note.—Reported data for F.R. Banks and U.S. Govt, agencies and in the United States. trust funds; Treasury estimates for other groups. 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

FEBRUARY 1968 n 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 Bills Other All holders: 1964—Dec. 31................................................... 212,454 88,451 56,476 31,974 64,007 36,421 6,108 17,467 1965—Dec. 31................................................. 214,604 93,396 60,177 33,219,- 60,602 35,013 8,445 17,148 1966—Dec. 31..................................................... 218,025 105,218 64,684 40,534 59,446 28,005 8.433 16,923 1967—Nov. 30................................................... 226,081 102,158 69,453 32,705 77,320 21,487 8,418 16,697 Dec. 31..................................................... 226,476 104,363 69,870 34,493 78,159 18,859 8,417 16,679 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—Nov. 30............................................. 16,704 3,712 2,615 1 ,097 5,058 2,306 2,115 3,513 Dec. 31............................................ 16,601 3,580 2,436 1 ,144 5,202 2,194 2,115 3,513 Federal Reserve Banks: 1964—Dec. 31......3..7..,.0..4..4...........2..1..,.3.8..8.... 6,487 14,901 13,564 1,797 58 237 1965—Dec. 3 (............................................ 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—Nov. 30............................................. 48,931 31,180 15,900 15,280 16,267 928 178 377 Dec. 31............................................. 49,112 31 ,484 16,041 15,443 16,215 858 178 377 Held by public: 1964—Dec. 31.....1..6..3.,.2..6..4...........6.5..,.3..3..1.... 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—Nov. 30............................................. 160,446 67,266 50,938 16,328 55,995 18,253 6,125 12,807 Dec. 31............................................. 160,763 69,299 51,393 17,906 56,742 15,807 6,124 12,789 Commercial banks: 1964—Dec. 31......5..3..,.7..5..2...........1..8..,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—Nov. 30...................................... 51,895 17,601 10,125 7,476 26,274 7,022 474 524 Dec. 31 ..................................... 52,194 18,451 10,415 8,036 26,370 6,386 485 502 Mutual savings banks: 1964—Dec. 31........5..,.4..3..4...............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—Nov. 30...................................... 4,084 658 397 261 1 ,499 780 268 880 Dec. 31...................................... 4,033 716 440 276 1 ,476 707 267 867 Insurance companies: 1964—Dec. 31........9..,.1..6..0.............1 ..,002 480 522 2,045 2,406 818 2,890 1965—Dec. 31..................................... 8,824 993 548 445 1 ,938 2,094 I ,096 2,703 1966—Dec. 31 ...................................... 8,158 847 508 339 1 ,978 1,581 1,074 2,678 1967—Nov. 30...................................... 7,399 660 377 283 2,068 1 ,065 I , 164 2,442 Dec. 31..................................... 7,360 815 440 375 2,056 914 1 ,175 2,400 Nonfinancial corporations: 1964—Dec. 31........9..,.1..3..6............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—Nov. 30...................................... 5,307 4,186 3,566 620 I ,018 89 3 1 1 Dec. 31................................ 4,936 3,966 2,897 1 ,069 898 6! 3 9 Savings and loan associations: 1964—Dec. 31........3..,.4..1..8...............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—Nov. 30...................................... 4,762 1 ,343 832 511 1 ,775 895 270 480 Dec. 31..................................... 4,575 1 ,255 718 537 1 ,767 811 281 461 State and local governments: 1964—Dec. 31.......1.5..,.0..2..2............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—Nov. 30...................................... 14,281 5,517 4,446 1,071 2.059 1,122 1 ,578 4,005 Dec. 31...................................... 14,689 5,975 4,855 1,120 2,224 937 1 ,557 3,995 All others: 1964—Dec. 31......6..7..,.3..4.1............3.3..,.1.11 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—Nov. 30...................................... 72,718 37,301 31,195 6,106 21,302 7,280 2,368 4,465 Dec. 31...................................... 72,976 38,121 JI,628 6,493 21 ,951 5,991 2,356 4,555 Note.—Direct public issues only, Based on Treasury Survey of about 90 per cent by the 5,868 commercial banks, 501 mutual savings Ownership. banks, and 762 insurance companies combined; (2) about 50 per cent by Data complete for U.S. Govt, agencies and trust funds and F.R. Banks the 469 nonfinancial corporations and 488 savings and loan assns,; and but for other groups are based on Treasury Survey data. Of total mar­ (3) about 70 per cent by 506 State and local govts. ketable issues held by groups, the proportion held on latest date by those “All others,” a residual, includes holdings of all those not reporting reporting in the Survey and the number of owners surveyed were: (1) in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-38 U.S. GOVERNMENT SECURITIES □ FEBRUARY 1968 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Dealers and brokers securities Total Within 1-5 5-10 Over Com­ All 1 year years years 10 years U se .S c . u G rit o ie v s t, Other m b e a r n c k ia s l other 1966—Dec............................. 2,712 2,059 427 160 66 1,114 121 978 500 232 1967—Jan.............................. ’■2,265 1,827 288 102 49 912 110 791 453 281 Feb............................. 2,186 1,744 331 79 32 774 90 826 496 217 Mar.......... 2,434 2,012 296 87 39 1,057 140 794 443 222 Apr............................. 2311 11738 262 82 28 '813 76 746 475 222 May........................... 2,075 1,636 332 77 30 784 63 720 507 188 J une............................ 1,802 11502 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 1305 177 30 24 715 52 711 459 200 Oct............................. 2,168 11941 150 43 33 795 66 841 465 202 Nov...................... 2'344 11935 273 96 40 848 76 862 558 227 Dec...................... 2,797 2,351 291 94 63 1,079 90 1,028 600 214 Week ending— 1967—Dec. 6. ............. 2,388 2,071 193 62 *62 997 74 815 503 *177 13............... 2,355 1 ,927 298 63 67 889 73 833 560 220 20...................... *•2,900 *2 302 GO I 132 65 *•1,206 *106 rl,016 *571 *241 27...................... 0,245 >■2,737 *335 116 58 •■1,026 ’"98 ri 302 *719 *194 1968—Jan. 3. .................... 3,613 3,177 313 83 41 1,414 125 1,324 750 241 10...................... 3,128 2,656 323 108 40 1 ,271 84 1' 194 579 193 17...................... 2,883 2,463 276 72 72 1,151 96 1,019 616 433 24...................... 2^68 2,271 208 32 56 '990 75 '857 645 298 31...................... 2,808 21506 236 37 28 1,150 87 995 496 297 Note.—The transactions data combine market purchases and sales of ties under repurchase agreement, reverse repurchase (resale), or similar U.S. Govt, securities dealers reporting to the F.R. Bank of N.Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of, and exchanges for, new U.S. Govt, securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi­ DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Period mat A ur l i l t i . es W 1 y it e h a in r y 1 ea -5 r s 5 O y v e e a r r s se a G c g u e o r n v i c t t i 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 1 a­ o A th l e l r City 4,158 3,447 530 181 502 1966—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 I 565 1,678 983 700 4,084 3’362 475 248 415 Feb........... 4*530 1,391 1’331 1,069 740 3,'902 3,’296 382 223 450 Mar....... 4,’298 1,289 1,461 825 723 Nfay....... 3^75 2,503 744 129 371 4 J 62 1,093 1.576 829 2,869 2,389 406 74 314 May......... 3,612 935 1,156 764 757 July......... 2.239 2,115 106 18 239 3,262 1121 984 665 492 2,903 2,564 312 26 265 July.......... 2,147 649 622 598 276 2'545 2,305 202 38 242 Aug.......... 2'717 835 734 868 280 2,880 2,837 22 20 379 Sept.......... 2,'669 1 oio 873 582 204 Nov,..... 3 J09 2^793 258 57 309 Oct............ 2,660 844 688 744 383 2,410 2,375 35 363 Nov.......... 2,863 650 640 1,176 397 Dec........... 2’551 556 481 1 J 44 370 Week ending— Week ending—- 1967—Nov. 1.. 3,305 3,093 '177 36 406 8. . 3,167 2,488 556 123 283 1967—Nov. 1... 3,055 1,142 766 879 269 15. . 3,034 *2,680 *302 51 241 8. .. 2,887 760 111 964 387 22. . 2,812 2,669 *112 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 Dec. 6. . 2,808 2,792 14 3 273 13. . 2,386 2,373 11 3 279 Dec. 6... 3,111 552 591 1 ,503 466 20. . 2,370 2,338 25 7 398 13. .. 2,457 466 417 1,290 284 27. . 2,269 2,213 60 5 473 20. 2,560 736 518 I ,041 265 27. .. 2,162 420 397 979 367 Note.—The figures include all securities sold by dealers under repur­ chase contracts regardless of the maturity date of the contract, unless the 1 All business corporations, except commercial banks and insurance contract is matched by a reverse repurchase (resale) agreement or delayed companies. delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more 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 nonbank dealers are included. See also dealer trading positions. Note to the opposite table on this page. Average of daily figures based on number of trading days in the period. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ GOVERNMENT SECURITIES A-39 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JANUARY 31, 1968 (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. Feb. 1, 1968................ 2,501 June 30, 1968............ 1,501 Feb. 15, 1971..........5^ 2,509 Aug. 15, 1970..........4 4,129 Feb. 8' 1968................ 2,502 July 5, 1968............. 1 ,001 Apr. 1,1971.........H/2 35 Aug. 15, 1971..........4 2,806 Feb. 15’ 1968................ 2,501 1 ,002 May 15, 1971.........51/4 4,265 Nov. 15, 1971. ..3% 2,760 Feb. 23’ 1968................ 2,501 July 18, 1968................ 1 'ooi Oct. 1,1971..........U/2 72 Feb. 15, 1972..........4 2,344 Feb. 29’ 1958................ 3^905 July 25, 1968................ 1 ^002 Nov. 15, 1971..........5% 1,734 Aug. 15, 1972..........4 2,579 Mar. 7,’1968.......... 2,501 July 31, 1968................ 1 '501 Feb. 15, 1972.........4*4 2,006 Aug. J 5, 1973.........4 3,894 Mar. 14’ 1968................ 2^501 Aug. 31, 1968............ 1 ’501 Apr. 1, 1972..........U/2 34 Nov. 15, 1973..........4i/8 4,353 Mar. 21’, 1968................ 2',507 Sept. 30, 1968................ 1 ’,500 May 15, 1972..........4^ 5,310 Feb. 15, 1974..........4% 3,129 Mar. 22’ 1968 f.............. 2,003 Oct. 31, 1968............. 1 ^502 Oct. 1, 1972..........l>/2 ID May 15, 1974..........4W 3,589 Mar. 28’ 1968.'............... 2’502 Nov. 30, 1968............. 1 ,000 Nov. 15. 1974..........5% 1 ,652 Nov. 15, 1974..........3% 2,242 Mar. 31, 1968................ 1 ,400 Dec. 31, 1968................ 1 ’000 May 15, 1975-85.. .4% 1 ,216 2’,502 Jan. 31, 1969............... 1 ’000 Treasury bonds June 15, 1978-83... 3% 1,571 Apr. 11, 1968................ 2'503 Dec. 15, 1963-68... 21/2 1,788 Feb. 15, 1980.........4 2,602 Apr. 18' 1968................ 2,502 June 15,1964-69...214 2,543 Nov. 15, 1980......... 3>/2 1,909 Apr. 22’ 19681.............. 3,507 Dec. 15, 1964-69... 21/2 2,490 May 15, 1985..........3% 1 ,118 Apr. 25’, 1968’............... 2'504 Feb. '15, 1968..........5% 2,635 Mar. 15, 1965-70.. .214 2,286 Aug. 15, 1987-92. ..4^ 3,817 Apr. 30 ’ 1968................ 1,402 212 Mar. 15, 1966-71... 2^4 1 ,224 Feb. 15, 1988-93... 4 249 May 2,’ 1968................ U000 May 15, 1968..........4% 5,587 June 15, 1967-72.. .214 1 ,255 May 15, 1989-94... 4% 1 ,559 May 9’ 1968................ 1 ,001 Aug. 15, 1968..........4^ 6,444 Sept. 15, 1967-72. . .2/i 1 ,952 Feb. 15,1990......... 3^ 4,885 May 16’ 1968................ 1,000 Nov. 15, 1968..........51/4 9,913 Nov. 15, 1967..........3 5/8 2,019 Feb. 15, 1995..........3 1,781 May 23’, 1968................ 1 ,000 Oct. 1,1968..........U/2 115 Dec. 15, 1967-72. . .2i/2 2,625 Nov. 15, 1998..........3i/z 4,363 May 31' 1968................ 2^403 Apr. 1, 1969...... 114 61 May 15, 1968.......3’/, 2,460 1 001 Oct. L 1969..........U/2 159 Aug. 15, 1968.......3% 3,747 June 13,1968................ 1,000 Nov, 15, 1969..........5% 10,738 Nov. 15, 1968.......3 7/g 1 ,591 June 20’1968................ 1,006 Apr. 1, 1970..........HA ' 88 Feb. 15, 1969.......4 3,728 Convertible bonds June 24’ 1968f.............. 5'534 Oct. 1,1970..........1 113 Oct. 1, 1969.......4 6,249 Investment Series B June 27,' 1968,'............... 1,003 Nov. 15, 1970..........5 7,675 Feb. 15, 1970.......4 4,381 Apr. 1, 1975-80... 2/4 2,553 Note.—Direct public issues only. Based on Daily Statement of U.S. t Tax anticipation series. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Use of proceeds Total Period a d m e o li u v n ­ t Total G g o a e b t a n i l l o e i­ n r­ s R n e u v e e­ HAA> G l U o o a .S v n . t s , State S di p s a s t e n t a c r d t i i , c a t l Other2 ered 3 Total c E at d io u n ­ b R r a o id n a g d d e s s i U tie ti s l­ 4 H in o g u s s­ V a a e n i t s d e * r ­ O p p o t u s h e r e s ­ r auth. 1960. 7,292 4,771 2,095 302 125 1,110 1,984 4,198 7,102 7,247 2,405 1,007 1,316 426 201 1,891 1961. 8,566 5,724 2,407 315 120 1,928 2,165 4,473 8,301 8,463 2,821 1,167 1,700 385 478 1,913 1962. 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1963, 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964, 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 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 12 231 334 410 969 381 108 226 40 213 Dec...... 940 397 533 100 568 272 940 297 280 87 131 164 1967—Jan....... 1,488 943 518 27 397 331 759 n.a. 1,482 408 219 163 691 Feb....... 1,230 933 287 10 257 307 665 1,196 468 133 117 478 Mar.... 1,455 841 460 117 37 231 548 676 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. 1,218 486 116 102 503 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 1,256 303 134 234 HO 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 10 779 1 Only bonds sold pursuant to 1949 Housing Act, which are secured s Includes urban redevelopment loans. by contract requiring the Housing Assistance 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 □ FEBRUARY 1968 TOTAL NEW ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all issues 1 all corporate issues 6 Noncorporate Corporate New capital Re­ Period Total U.S. U.S. Bonds Stock Total Other m ti o r e e f n ­ t G U o . v S t . .2 G a c g y o e v n 3 t ­ , l S o a c t n a a d t l e 4 Other 5 Total Total of P l f i u c e l r b y e ­ d p v l P a a t r c e i e l ­ y d fe P r r r e e ­ d C m o o m n ­ Total m N on ew ey 7 p p o u s r e ­ s s r e it c ie u 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 I960.................. 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—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 I Mar..... 5,253 459 750 1,437 245 2,362 2,219 1,618 601 24 119 2,334 2,317 2,178 139 17 4,229 393 650 1,129 41 2,015 1,778 1,368 410 144 94 1,985 1,973 1,891 82 12 May....... 4; 002 438 810 1'209 26 1 ,518 1,361 965 396 47 111 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 ri,732 1,723 1,581 142 10 4,618 422 708 991 78 2,417 1 ,948 1,375 572 231 239 ^2,375 2,296 2,128 168 79 Nov..... 2;564 391 710 1,320 143 1 ,494 1 ,188 645 543 81 225 1 ,463 1 ,461 1 ,296 164 3 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e l r la c n ia e l o a u n s d Transportation Public utility Communication an R d e a f l i n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ rities rities rities rities rities rities 1959. 1,941 70 812 28 942 15 3,189 15 707 1,801 6 1960. 1,997 79 794 30 672 39 2,754 51 1,036 I 2,401 71 1961. 3,691 287 1,109 36 651 35 2,883 106 1,435 382 2,248 22 1962, 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 1963. 3,272 199 756 53 861 87 1,939 703 733 359 2,962 125 1964. 2,772 243 1,024 82 941 32 2,445 280 2,133 36 3,723 80 1965. 5,015 338 1,302 79 967 36 2,546 357 847 92 4,128 93 1966. 6,855 125 1,356 44 1,939 9 3,570 46 1,978 4 1,902 14 1966--Nov.................................. 228 2 58 204 320 10 168 107 Dec.................................. 673 4 93 266 4 409 ........1..5.2.. 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 Apr.................................. 1,128 7 102 4 100 394 1 107 141 May................................. 588 1 94 ♦ 199 403 17 91 100 June................................. 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 Oct................................... 918 6 120 7 170 573 65 132 383 Nov................................. 522 I 208 2 76 ........4.0..4.. ............. 70 ........1..8.1.. 73 1 Gross proceeds are derived by multiplying principal amounts or « Estimated gross proceeds less cost of flotation. number of units by offering price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. s All issues other than those for retirement of securities. 3 Issues not guaranteed. ** See Note to table at bottom of opposite page. Note,—Securities and Exchange Commission estimates of new issues 5 Foreign governments, International Bank for Reconstruction and maturing 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

FEBRUARY 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...................... 15,641 8,711 ■6,930 10,556 4,979 5,577 3,138 1,948 1,536 2,197 ( ,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—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 HI.............. 8,892 2,690 6,202 6,248 1 ,394 4.854 1 .412 1 .232 721 576 691 656 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation utility cation and financial 4 & B n on o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1962.................... 1,355 -242 294 -201 -85 -25 1,295 479 1,172 357 833 2,619 1963...................... 1 ,804 -664 339 -352 316 -19 876 245 438 447 I , 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 -I 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—in.............. 1,198 58 143 -22 218 16 469 112 405 103 356 721 IV.............. 736 -140 72 -553 224 26 755 136 465 147 -26 r1,239 1967—1................ 1,489 52 130 -6 372 19 642 90 511 97 379 '1,133 II............... 1,858 107 178 52 198 47 1,089 117 320 158 41 655 Ill.............. 2,253 403 425 35 402 45 867 168 594 92 345 611 i 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, 2 Railroad and other transportation companies. and also new stock issues and cash proceeds connected with conversions 4 Includes investment companies. of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for Note.—Securities and Exchange Commission estimates of cash trans­ that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a t s io h n 3 Other Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a t s i h o n3 Other 1955 ............. 1,207 443 765 7,838 438 7,400 1966—Dec,.. 300 151 149 34,829 2,971 31,858 1956............. 1'347 433 914 9'046 492 8,554 1957............. 1'391 406 984 8'714 523 8,191 1967—Jan.... 391 183 209 37,230 2,869 34,361 1958............. 1 '620 511 1,109 13'242 634 12,608 Feb... 298 179 120 38'034 2'866 35.168 Mar. . 389 226 163 39'443 2; 682 36,761 1959............. 2,280 786 1,494 15,818 860 14,958 Apr... 358 214 144 41,191 2,666 38,525 1960............. 2^097 842 1'255 17'026 973 16'053 May.. 357 258 99 39'847 2,608 37,239 1961............. 2,951 1,160 1’791 22'789 980 21'809 June.. 375 225 150 40,795 2,503 38,292 1962............. 2 ,’699 1,123 1 ,’576 21,271 1,315 19,956 July... 425 222 203 43,064 2,515 40,549 Aug... 347 249 98 42,663 2,370 40,293 1963............. 2,460 1,504 952 25,214 1,341 23,873 Sept... 352 246 106 43,585 2,244 41 ,341 1964............. 3’404 1,875 1,528 29 J16 1,329 27’787 Oct... 409 270 139 42,652 2,218 40,434 1965............. 4'359 1,962 2'395 35'220 1 '803 33'417 Nov. . 468 231 237 43’262 2,653 40,609 1966............. 4,'671 2,005 2^65 34^829 2,971 3^858 Dec.. . 501 242 259 44'701 2'566 42’135 i 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 alt 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

A-42 BUSINESS FINANCE □ FEBRUARY 1968 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1965 1966 1967 Industry 1962 1963 1964 1965 1966 IV I II in IV I 11 in Manufacturing Total (177 corps.): Sales............................................ 136,545 147,380 158,253 177,237 196,136 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 1 ,721 Nondurable goods industries (78 corps.):1 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 2,729 707 651 682 673 723 720 756 770 Durable goods industries (99 corps.):2 Sales............................................ 84,300 92,008 98,482 112,341 122,638 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.................................... 566 608 672 737 817 196 200 204 204 209 232 280 286 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 I ,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 3,312 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 1 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 2 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts, of American Telephone and Telegraph Co.), published reports of companies. and for 2 affiliated telephone companies. Dividends are for the 20 opera­ Railroads: Interstate Commerce Commission data for Class I line­ ting subsidiaries and the 2 affiliates. haul railroads. AH 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

FEBRUARY 1968 a BUSINESS FINANCE A-43 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a a r f o x t f e e i s r ts d C d e i a n v s d i h ­ s t U p ri r b n o u d fi t i t e s s d ­ co c a n a l ti l s p o o u i n w t m a ­ l p ­ Quarter P b t e r a o x fo f e i r s t e s c ta o I x n m e ­ s e P t a a r f o x t f e e i s r 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 t n a l i l s o p o u n i w t m a ­ l p ­ ances1 ances 1 I960............ 49.7 23.0 26.7 13.4 13.2 24.9 1966—1, . .. 83.7 34.5 49.2 21.4 27.8 38.3 83.6 34.5 49.2 21.6 27.6 38.7 1961............. 50.3 23.1 27.2 13.8 13.5 26.2 III... 84.0 34.6 49.4 21.6 27.8 39.2 1962............. 55.4 24.2 31.2 15.2 16,0 30.1 IV... 83.9 34.6 49.3 21.2 28.2 39.8 1963............. 59.4 26.3 33.1 16.5 16.6 31.8 1964............. 66.8 28.3 38.4 17.8 20.6 33.9 1967—I. . .. 79 0 32.5 46.5 22.2 24.2 40.3 1965............. 76.6 31.4 45.2 19.8 25.4 36.5 11.. . 78.9 32.5 46.5 23.1 23.4 40.9 1966............ 83.8 34,5 49.3 21.5 27.8 39.0 Iff... 80.0 32.9 47. 1 23.4 23.6 41.8 1967*»........... 80.1 33.0 47,2 22.8 24.4 41,4 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts, Notes and accts, End of period working U. S. receivable payable Accrued capital Total Cash s G ec o u v r t i , ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1961............................ 148.8 304.6 40.7 19.2 3.4 133.3 95.2 12.9 155.8 1.8 110.0 14.2 29 8 1962........................... 155.6 326.5 43.7 19.6 3.7 144.2 100.7 14.7 170.9 2.0 119.1 15.2 34.5 1963............................ 163.5 351.7 46.5 20.2 3.6 156.8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964............................ 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 1965 ............................ 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—1....................... 182.7 412.1 47.3 16.7 1.9 190.8 129.2 24.3 229.3 3.3 158,3 18.9 48.8 ....1..8..7....1.........4..21.8 48.1 15.0 4.0 196.7 133.4 24.6 234.7 3.5 164 0 16.5 50.8 Ill.................... 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 IV..................... 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—1....................... 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 .....1.9..2....8.........4..41.1 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 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable du N r o ab n l ­ e Mining Railroad Other u P t u il b it l i i e c s C ni o c m ati m on u s ­ Other 1 a ( n r S a n . t u A e a ) . l 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—I................................. 12.77 2.87 2.74 .33 .40 .75 1.60 1.26 2.83 58.00 II................................ 15.29 3.51 3.27 .40 .55 1.00 2.09 1.42 3.06 60 10 Ill............................... 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 H................................ 15.61 3,46 3.34 34 .41 1.12 2.46 1.49 2.99 61.50 Ill............................... 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 1968—12................................ 14.32 3.17 2.90 .37 .34 1.10 2.22 4.22 65,05 t 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

A-44 REAL ESTATE CREDIT n FEBRUARY 1968 MORTGAGE DEBT OUTSTANDING (In billions of dollars) AU properties Farm Nonfarm Other I- to 4-family houses4 Multifamily and Mortgage E pe n r d io o d f h A e o r l U s d ­ tu F i t n i c i n i s o a a t n i l n ­ s ­ 1 a U c g i . e e h S n s o . ­ lde v r o I i s a t d n h 2 n u d e d a i r ­ l s s h A e o r U l s d ­ tu F i t n i c i n o i s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A e o r U l s d ­ Total tu F i t n i i n o s a t n i n ­ s , 1 O h e o th r l s d e ­ r c T o o m ta m l er t c F u i i a t n i i n l s o a t p n i n ­ s r , o 1 pe O h r e o t t i r h l e s d e s ­ r 5 w u F V n r H i d A t A t e e - t r - y n ­ pe t C 6 i v o e o n n n a ­ ­ l 1941........... 37.6 20.7 4.7 12,2 6.4 1.5 4.9 31.2 18.4 U.2 7.2 12.9 8.1 4.8 3.0 28.2 1945........... 35.5 21.0 2.4 12.1 4,8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4 3 26.5 1961........... 226.3 172.6 11.8 41.9 13.9 5.0 8.9 212.4 153.1 128.2 24.9 59.3 39.4 19.9 65.5 146 9 1962.......... 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—m.. 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—IP... 332.3 269.6 13.5 49.2 21.8 8.0 13.7 310.5 216.9 187,8 29.1 c93.7 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 I Vp.. 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 IIP.. 362.4 292.9 17.4 52.1 24.6 8.9 15.8 337.8 232. [ 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-famiIy properties alone trust depts,), mutual savings banks, life insurance companies, and savings are shown on second page following. and loan assns. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., Note.—Based on data from Federal Deposit Insurance Corp., Federal and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. Home Loan Bank Board, Institute of Life Insurance, Depts, of Agricul­ Other U.S, agencies (amounts small or current separate data not readily ture and Commerce, Federal National Mortgage Assn., Federal Housing available) included with “individuals and others/’ Admin., Public Housing Admin., Veterans Admin., and Comptroller 3 Derived figures; includes debt held by Federal land banks and farm of the Currency. debt held by Farmers Home Admin. Data shown have been adjusted to allow for recent revisions by Dept, 4 For multifamily and total residential properties, see p. A-46. of Commerce of end-of-year figures on multifamily and commercial 5 Derived figures; includes small amounts of farm loans held by properties back to 1962. savings and Ioan 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 Other Total Total FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ f n a o rm n­ Farm Total Total FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ O f n a 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............................. 49^675 32’387 7,702 2^688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14^897 4'469 52 1966............................. 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—III..................... 48,353 31,574 7,641 2,700 21,233 13,926 2,853 43,539 39,153 13,412 11,368 14,373 4,334 52 IV...................... 49,675 32,387 7,702 2,688 21,997 14^377 2^91j 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. . .................. 52^306 33'800 7'769 2'654 23'377 15'478 3,028 45,883 41'083 14,047 11',346 15'690 4',747 53 HI..................... 53,606 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 7J96 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 report data and data from Note.—^Second and fourth quarters, Federal Deposit Insurance Corpo­ the 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

FEBRUARY 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 u A re - d a g n V u t A e a e r - d ­ Other 1 Farm 1 Total Total in F s H u A re - d a g n V u t A e a e r - ­ d Other Farm 1945............................................ 976 6,637 5,860 1,394 4,466 766 1961........................................... 6,785 6,233 1 388 220 4,625 552 44,203 41,033 9,665 6,553 24 815 3 170 1962............................................ 7,478 6,859 l’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 I 812 674 6,900 1,047 55,152 50,848 11,484 6,403 32 961 4’304 1965............................................ 11,137 9,988 1 ’738 553 7^697 1,149 60,013 55,190 12,068 6,286 36336 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—Nov.r............................... 713 678 88 41 549 35 64,227 58,992 12,361 6,200 40 431 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 12368 6317 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 ,'25 3 60'924 12’434 6'183 42,307 5 329 June................................. 643 569 60 31 478 74 66'414 61,038 12397 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 12389 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,'8 84 61,401 12.’236 6'124 43 041 5’483 Nov.,............................... 662 603 50 30 523 59 67;O97 61,595 12314 6,112 43,269 5*502 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 $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) Period Ad­ Repay­ Members' New vances ments deposits Period home Home FHA- VA- Con­ Total Short­ Long­ Total 1 con­ pur­ Total 2 in­ guar­ ven­ term 1 term 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 1961......... 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1963..................... 5,601 4,296 4,784 2,863 1,921 1,151 1962......... 20’754 5 979 8*524 78,770 4 476 7’dl0 67’284 1964..................... 5,565 5'025 5,325 2,846 2,479 1,199 1963 ......... 24^735 7^039 9^920 90,944 4,696 6’960 79 288 1965..................... 5,007 4,335 5,997 3,074 2,923 1,043 1964......... 24,505 6,515 10,397 101'333 4,894 6*683 89,756 1966..................... 3’804 2,866 6,935 5,006 1,929 1,036 1965......... 23^847 5,922 10^697 110,306 5 145 6’398 98,763 1967..................... 1 '527 4,076 4,386 3,985 401 I ,432 1966.......... 16,720 3*606 7’,746 114'447 5 270 6 158 103'019 1967’....... 19,892 4,191 9,504 121,905 5 ,*789 6^362 109,754 1966—-Dec.......... 68 217 6,935 5,006 1,929 1,036 1966-Dec.. 935 189 422 114,447 5,270 6,158 103,019 1967 Jan............. 224 818 6,340 4,814 1,526 1,088 Feb............ 49 589 5,800 4,730 1,070 1,240 1967-Jan. . 788 165 365 114,229 5,277 6,144 102,808 Mar........... 30 655 5,175 4,262 913 1,490 Feb.. 950 205 420 114,395 5,278 6,141 102,976 Apr....... 59 452 4,782 3,976 806 1,648 Mar.. I ,347 306 571 114,797 5,296 6,143 103,358 May....... 59 420 4,421 3,776 644 1,831 Apr.. 1,339 312 586 115,233 5,321 6,141 103,771 June........... 89 208 4,302 3,696 606 1,925 May. 1,738 400 779 115,909 5,365 6,127 104,417 July........... 193 274 4,221 3,680 541 1,521 June. 2,162 435 1,046 116,944 5,384 6,169 105,391 Aug............ 134 202 4,153 3,659 494 1,343 July.. 1,860 382 951 117,676 5,437 6,187 106,052 Sept....... 102 133 4,122 3,642 480 1,317 Aug.. 2,228 424 1,186 118,674 5,514 6,223 106,937 Oct............ 160 169 4,114 3,681 433 1,323 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 Dec............ 252 54 4,386 3,985 401 1,432 Nov.r 1 ,801 388 856 121,127 5,714 6,336 109,077 Dec.? 1,760 831 778 121,905 5,789 6,362 109,754 i Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than t Includes loans for repairs, additions and alterations, refinancing, etc., I year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes 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 □ FEBRUARY 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 e t m i x s n ­ e g s e P c r t o s j­ 1 m p P r e e i r o m r n o t v t y p ­ s e ­ ­ 2 Total 3 h N om M ew e o s rtga h i g s o E e t m i x s n ­ e g s E pe 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 t u e 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 3’905 '843 804 3 >45 1 '272 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 1967........................... 7’150 1’369 4,516 642 623 3 >05 1,143 2,259 1964—1......... 185.4 66.6 35.7 31.0 118.8 1966—Dec................. 409 113 214 35 46 226 104 121 II......... 189.8 67.3 36.3 30.9 122.5 Ill....... 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 HI....... 209.6 72.0 40.9 31.1 137.5 626 105 403 57 61 266 81 185 IV....... 213.7 73.1 42.0 31.1 140.6 July................ 595 103 399 36 58 296 82 214 762 129 525 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 11......... 220.2 74.6 43.7 30.9 145.7 Oct................ 817 150 515 88 64 434 125 310 HI....... 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 Dec................. 594 124 334 90 47 340 124 217 1967—F»........ 225.5 76.4 45.2 31.2 149.0 TH 228.3 77.2 45.7 31.5 151.1 1 Monthly figures do not reflect mortgage amendments included in annual totals. UP.... 232.1 78.3 46.6 31.7 153.8 2 Not ordinarily secured by mortgages. ^ Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than 51,000 need be secured. i Includes outstanding amount of VA vendee accounts held by private investors under repurchase Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans agreement. represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or Note.—For total debt outstanding, figures are guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on FHLBB and F.R. estimates. For conventional, number and average amount of loans closed. 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 E pe n r d io o d f Total F su H in re A ­ d - a g n V u te A a e r - ­ d c P ha u s r p e ­ s eriod S ) ales b m u d u e r i n s s n e ­ ­ t d s period Total t F u in i c t n i i s o a a ti l n n ­ s ­ h O ol t d h e e r r s Total t F u in i c t n i i s o a a t l i n n ­ s ­ h O ol t d h e e r r s 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 3,571 2,353 740 498 355 1963......................... 4 >50 3.017 1,634 290 1,114 191 1961.............. 176.0 143.0 33.0 23.0 14.8 8.2 1964......................... 4,412 2,996 1>16 424 251 313 1962............... 192.5 157.9 34.6 25.8 17.5 8.3 1965......................... 4’731 3 >04 1,327 913 200 793 1963............... 211.2 176.7 34.5 29.0 20.7 8.3 1966........................ 7'063 5,407 1,656 2,701 705 [967.......................... 8,870 6’803 2>66 2 >60 12 1 ,672 1964...,..... 230.8 195.2 35.6 33.2 24.8 8.4 1965.............. 250.7 213.7 37.0 37.0 28.5 8.5 1966—Dec............... 7,063 5,407 1,656 202 705 1966”............. 263.6 223.5 40.1 39.5 30.9 8.6 1967—Jan................ 7,216 5,522 1,694 181 695 1965-1...... 234.7 199.0 35.8 34,0 25.6 8.4 Feb................ 7,331 5,615 1,716 144 641 IL. . 240.1 204.0 36.1 34.9 26.6 8.3 Mar............... 7,'415 5 >92 1 >23 119 ri 706 in.... 245.5 209,1 36.4 36.0 27.6 8.4 Apr............... 7’,461 5 >40 1,721 78 ri 744 IV... . 250.7 213,7 37.0 37.0 28.5 8.5 May.............. 7,484 5'767 1 >17 65 1 835 June.............. 7’524 5’811 1 >13 88 6 1,104 1966—Ip........ 254.7 217,0 37.7 37.8 29.3 8.5 July............... 7.’624 5 >90 1 >34 136 1 1 '333 IP.... 258,8 220.3 38.5 38.5 29.9 8.6 Aug......... 7,872 6,076 1 >96 291 I 1'447 IIP... 261.5 222.1 39.4 39.1 30.5 8.6 Sept............... 8,105 6,249 1,856 272 1 >73 IV”.... 263.6 223.5 40.1 39.5 30.9 8.6 Oct.............. 8,371 6,441 1,930 307 1,535 Nov.,....... 8,610 6,615 1 >95 279 1>76 1967—Ip........ 265.7 224.9 40.8 40.2 31.5 8.7 Dec................ 8,870 6,803 2,066 299 ....1..,.6..7..2 IP.... 269.4 228.2 41.2 41.0 32.3 8.7 III”... 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 1 Structures of 5 or more units. For 1- to 4-family mortgage debt see Trust, but excluding conventional mortgage loans acquired by FNMA second preceding page. from the RFC Mortgage Co., the Defense Homes Corp., the Public 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

FEBRUARY 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 e t r ) t ­ c F c h ( e e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c r p ( a e o p r t n i a e i c t n r o e ) / (t d h c o o p P h l r u u l a i a s c s r . r e ­ e s o ) f (t a d h m o o L l u o o la s a u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & t s M (y a e t a u r r s i ) ty L c p r ( e a o p r n t i a e c i t n r o e ) / (t d h c o o p P h l u r l u a i a s c r s . r ­ e e s o ) f (t a d h m o L o l u o o la s a u . r n n s o ) t f 1963...................... 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19.2 70.8 17.8 12.6 1964...................... 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965...................... 5.76 .54 24.8 74.1 24.7 18.1 5.89 .50 20.4 72.0 19.7 14.1 1966...................... 6.11 .69 24.4 72.8 26.4 19.0 6.24 .59 20.0 65.1 20.4 14.4 1967^.................... 6.37 .94 24,0 73,9 26.7 19.7 6.41 .73 21.1 72.3 22.3 16.1 1966—Dec............ 6.49 1.25 23.3 72.4 25.5 18.5 6.55 .81 20.2 70.9 20.8 14.7 1967—Jan............. 6.47 (.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 (6.2 Nov....... 6.37 .81 24.2 73.6 27.7 20.4 6.43 .75 21.5 72.6 23.6 17.1 Dec.3’...... 6.45 .93 24,8 73.8 28.3 20.9 6.51 .77 21.7 72.7 23.5 17.( 1 Fees and charges—related to principal mortgage amount—include originated by major institutional lender groups (including mortgage loan commissions, fees, discounts, and other charges, which provide companies) for purchase of single-family homes. Data exclude loans for added income to the lender and are paid by the borrower. They exclude refinancing, reconditioning, or modernization; construction loans to any closing costs related solely to transfer of property ownership. home-builders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning July 1966, not strictly compar­ Note.—Compiled by Federal Home Loan Bank Board in cooperation able with earlier data. See also the table on Mortgages: New and Exist­ with Federal Deposit Insurance Corporation. Data are weighted averages ing Homes, p. 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 Loans not in foreclosure Period Number (per cent of End of period but delinquent for— Lo f a o n re s ­ in (thousands) s m tr o u r c tg tu a r g e e s d ) closure 90 days Total 30 days 60 days or more 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 II.............................. 30.1 .52 1965—1.................... 2.94 2.06 .54 .34 .37 Ill............................. 29.1 .50 II....... 3.00 2.18 .52 .30 .38 IV............................... 29.6 .50 Ill................ 3.20 2.30 .56 .34 .38 IV................. 3.29 2.40 .55 .34 .40 1966—1............................... 28.8 .48 ..............3.0....8............. .51 1966—1.................... 3.02 2.13 .55 .34 .38 HI............................. 29.3 .48 II.................. 2.95 2.16 .49 .30 .38 IV............................... 28.6 .46 Ill................. 3.09 2.25 .52 .32 .36 IV................. 3.40 2.54 .54 .32 .36 1967—1............................... 29.5 .48 .............2..9....7............. .48 1967—1................... 3.04 2.17 .56 .31 .38 in.............................. 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 l- 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 □ FEBRUARY 1968 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t i e o l r e ­ co g O p n o a s t o p h u d e e m s r r er e a r n R n l d o i e z a p m a n a t s o i i o r d 1 n ­ Pe lo rs a o n n s al Total p S a l i y o n m a g n l e e s n ­ t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939....................................... 7,222 4,503 1,497 1,620 298 1 ,088 2,719 787 1 ,414 518 1941....................................... 9'172 6,085 2,458 1,929 376 1,322 3,087 845 1 ’645 597 1945...................................... 5,665 2^62 455 816 182 C009 3^03 746 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 1 1,857 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 5^84 3:990 1963 ...................................... 70,461 54,158 22,433 13,856 3,405 14,464 16,303 6,117 5,871 4,315 1964....................................... 78,442 60,548 25,195 15,593 3,532 16,228 17,894 6,954 6,300 4,640 1965....................................... 87'884 68,565 28,843 17,693 3,675 18,354 19,319 7,682 6,'746 4,891 1966....................................... 94,786 74,656 30,961 19,834 3,751 20,110 20,130 7,844 7'144 5,142 1967....................................... 99,228 77',946 31,197 21 ',328 3,731 21 ,690 21 ,282 8,267 7’595 5'420 1966—Dec............................. 94,786 74,656 30,961 19,834 3,751 20,110 20,130 7,844 7,144 5,142 1967 Jan.............................. 93,479 74,015 30,689 19,649 3,703 19,974 19,464 7,779 6,472 5,213 Feb............................. 92,517 73;598 30,530 19,426 3; 666 19,976 18^919 7,754 5; 824 5’341 Mar............................ 92,519 73;591 30,527 19^69 3i 648 20,047 18,928 7,769 5,809 5^350 Apr............................. 93,089 73,840 30,635 19,376 3,636 20i193 19^249 7,890 5,923 5’436 93’917 74'290 30,852 19'442 3,670 20,326 19^27 8,017 6,231 5^379 June............................ 94,813 75.051 3^208 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 3^48 21,375 20;122 8^237 6,614 5,271 Dec............................. 99,228 77^46 31,197 21 328 3'731 21,690 21'282 8’267 7,’595 5>20 i Holdings of financial institutions; holdings of retail outlets are in­ hold, family, and other personal expenditures, except real estate mortgage cluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Note.—Consumer credit estimates cover loans to individuals for house­ Statistics, 1965, and May 1966 Bulletin. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n c m k ia s ­ l fi S n c a o a l n s e . c s e u C n r i e o d n i s t f s i C n u a m o n n e c ­ r e 1 Other1 Total D st m o ep r e e n a s t r t 2 ­ F st t u o u r r r n e e i s ­ A s a to p n p r c e l e i s ­ d m A ea o u l b e t i o r l s e ­ 3 Other 1939 ............................ 4,503 3,065 1 ,079 1,197 132 657 1 ,438 354 439 183 123 339 1941............................ 6^085 4’480 1 ,726 1 '797 198 759 1,605 320 496 206 188 395 1945............................ 2,462 1'776 '745 '300 102 629 686 131 240 17 28 270 1960............................ 42,832 37,218 16,672 11,472 3,923 3,670 1,481 5,615 2,414 1,107 333 359 1,402 1961............................ 43^27 37,'935 17'008 11,273 4,330 3^99 1,525 5,595 2^21 1 058 293 342 1:48l 1962............................ 48^034 41'782 19,005 12J94 4^02 4,131 ^550 6,252 3^1 3 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............................ 60^48 53'141 25’094 14'762 6358 5:078 1 :?49 7,407 3',922 1,152 286 370 1:677 1965 ............................ 68'565 60'273 29’,173 16'138 ?:512 5^06 C844 8^92 4,488 1:235 302 447 1 ,820 1966.......................... 74,656 65,565 32,'155 16,'936 8,549 6^14 1:911 9,091 n.a. n.a. 490 n.a. 1967............................. 77’946 68’273 33'992 16 851 9,169 6’, 294 1 ,967 9,673 n.a n.a, n a. 506 n.a. 1966—Dec.................. 74,656 65,565 32,155 16,936 8,549 6,014 1,911 9,091 n.a. n.a. n.a. 490 n.a. 1967—Jan................... 74,015 65,162 32,033 16,814 8,443 5,969 1,903 8,853 n.a. n.a. n.a. 488 n.a. Feb.................. 73,598 64^966 31^967 16^696 8,429 5^65 1 ,'909 8,632 n.a. n.a. 485 n.a. Mar................. 73,591 65,006 32,068 16,593 8^85 5,951 1,909 8 ,'585 n.a. n.a. n.a. 486 n.a. Apr................... 73,840 65^98 32’299 16,590 8^61 5,951 1,897 8^42 n.a. n.a. n.a. 490 n.a. May................. 74,290 65'733 32,560 16'615 8,665 5,947 1 ;946 8,557 n.a. n.a. n.a. 494 n.a. June................. 75,'051 66'452 32,966 16'721 8,'826 5,995 1,944 8,599 n.a. n.a. n.a. 502 n.a. July.................. 75,348 66,781 33,235 16,747 8',864 6,009 1,926 8,567 n.a. n.a. n.a. 506 n.a. Aug................. 75^89 67^273 33’536 16'755 8;991 6',036 G955 8,616 n.a. n.a. n.a. 508 n.a. Sept.................. 76,039 67,376 33’637 16’701 9^26 6,067 1:945 8;663 n.a. n.a. n.a. 507 n.a. Oct............ 76,223 67,513 33,723 16:698 9^54 6; 086 I’,952 810 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. Dec................... 77,946 68,273 33;992 16'851 9; 169 6^94 1^67 9 ,'673 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

FEBRUARY 1968 □ CONSUMER CREDIT A49 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Other Repair End of period Total paper s c u o m n e ­ r m an o d d ­ s P o e n r a ­ l Auto­ O co th n e ­ r R a e n p d a ir Per­ ch P a u s r e ­ d Direct g p o a o p d e s r e l r t o n i a o iz n n a s ­ loans End of period Total m pa o p b e il r e s g p u o a m o p d e e r s r m iz lo o a a t d i n e o s r n n ­ s lo o a n 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 I960............................... 11,472 7,528 2,739 139 1,066 1961....................... 171008 5'391 2,860 2’761 2^ 198 3,798 1961............................... 11,273 6,811 3,100 161 1,201 1962....................... 19,005 6'184 3,451 2’824 2,261 4,285 1962............................... 12'194 7'449 3 123 170 1 452 1963.............. 22,023 7,381 4,102 3,213 2 377 4,950 1963............................... 13,523 8328 3,383 158 1,754 1964....................... 25'094 8,691 4',734 3,670 2 457 5’,542 1964.............................. 14362 8301 3,889 142 2 030 1965....................... 29,173 10,310 5,721 4366 2,543 6’333 1965.............................. 16'138 9341 4,429 123 2345 1966....................... 32’155 11,370 6,165 5’101 2,567 6,952 1966.............................. 16,936 9391 4329 110 2,606 1967....................... 33'992 11,400 6369 5,808 2 523 7'692 1967............................... 16351 8 359 5317 103 2’772 1966 Dec.............. 32,155 11,370 6,165 5,101 2,567 6,952 1966—Dec.................... 16,936 9,391 4,829 110 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 1L214 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.................... 16,590 9,128 4,749 104 2,609 May............ 32’560 11,313 6,307 5,342 2,489 7’109 16,615 9,150 4,751 105 2,609 J J u u n ly e . .. . . . .. . .. . . . .. . .. . 3 3 2 3, '9 2 6 35 6 1 1 1 1, '4 4 1 89 4 6 6, , 4 4 5 0 1 2 5 5 , , 4 5 3 0 1 0 2 2 ’ ’ 5 5 0 1 5 9 7 7 , 3 '2 7 1 6 4 J J u u l n y e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 16 6 , 3 7 4 21 7 9 9 ' 3 2 5 3 2 8 4 4 , , 7 7 6 5 1 2 1 1 0 0 8 6 2 2 , , 6 6 3 1 5 6 Aug............. 331536 11,538 6394 5,556 2’536 7'412 Aug.................... 16,755 9,200 4,781 107 2,667 S O e c p t. t . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 , , 6 7 3 2 7 3 1 11 1 ’. 3 4 9 6 7 3 6 6 ,4 5 9 1 0 5 5 5 ,6 6 1 5 9 6 2 2 ’ 5 5 3 3 9 8 7 7 , ’ '4 5 9 5 0 3 Sept.................... 1 1 6 6 , , 7 6 0 9 1 8 9 9 , , 0 07 2 9 4 4 4, , 8 8 6 2 3 4 1 1 0 0 7 7 2 2 , , 6 7 9 0 1 4 D N e o c v . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 33 3 * ,8 9 1 9 9 2 1 11 1 , , 4 4 0 2 0 8 6 6 , , 5 5 4 6 5 9 5 5, ’ 8 6 0 9 8 6 2 2, ’ 5 5 2 3 3 4 7 7 , , 6 6 1 9 6 2 N D o e v c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 6 6 , ,’ 8 7 5 2 1 2 8 8 , , 9 9 9 5 0 9 4 5, , 0 9 1 0 7 7 1 1 0 0 5 3 2 2 , , 7 7 2 7 0 2 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 paper g p o a o p d e s r i l z o a a ti n o s n loans End of period Total C m o e m r­ ­ O fi c n t i h a a e n l r ­ p D a e rt ­ ­ O re t t h a e il r Credit S c e r r e v d ic it e 1 1 9 9 3 4 9 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7 5 89 7 12 81 2 2 36 4 1 15 4 7 6 8 6 5 9 b c a i n a k l s tu in ti s o ti n ­ s st m o e re n s t 1 outlets cards2 104*5.............................. 731 54 20 14 643 I960. 9,074 I 665 771 800 5,837 1939............ 2,719 625 162 236 1,178 518 1961. 9*654 1,819 743 832 6,257 1941............ 3,087 693 152 275 1,370 597 1962............................... 10,583 2,111 751 815 6,906 1945............ 3,203 674 72 290 1'322 845 1963.............................. 11 859 2,394 835 870 7,760 1960............. 13,196 3,884 623 941 3,952 436 3,360 1964........................... 13,285 2,699 997 933 8,656 1961............ 14,151 4,413 723 948 3,907 469 3'691 1965 14,962 3,124 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 1967 17’430 3 763 1 336 1 105 11’226 1963............. 16,303 5,205 912 895 4,456 520 4,315 1964............. 17'894 5'950 1,004 909 4,756 635 4,640 1966--Dec.................... 16,474 3,545 1,303 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 1967............ 21,282 7’064 1'203 n.a. n.a. 1 ,054 5'420 Feb.................... 16,303 3,495 1,288 1 ’057 10,463 Mar................... 16,345 3 515 1,284 1 057 10 489 1966—Dec... 20,130 6,714 1,130 n.a. n.a. 874 5,142 Apr.................... 16,409 3 544 1 283 1 054 10 528 May.................. 16358 3,588 1,286 1 ’076 10,608 1967—Jan.. .. 19,464 6,659 1,120 n.a. n.a. 908 5,213 June.................. 16,765 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,................... 16^982 3 715 1 ’310 1 100 10 857 Apr.., 19,249 6,758 1,132 n.a. n.a. 922 5,436 Sept.............. 17 038 3’723 1*315 I *097 10 903 May.. 19,627 6,848 1,169 n.a. n.a. 939 5,379 Oct.................... 17’.092 3 729 ! *319 1 ’ 100 10,944 June.. 19,762 6,902 1,175 n.a. n.a. 965 5,351 Nov.................... 17,222 3 748 1 *326 i ’ 109 1i’039 July.. . 19,767 6,927 1,173 n.a. n.a. 1,024 5,321 Dec.................... I733O 3’763 11336 1 J05 11,226 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 Oct... 19,871 7,001 1,188 n.a. n.a. 1,056 5,211 Note.^Institutions represented are consumer finance companies, credit Nov... 20,122 7,034 1,203 n.a. n.a. 1,046 5,271 unions, industrial loan companies, mutual savings banks, savings and Dec... 21,282 7,064 1,203 n.a. n.a. 1 ,054 5,420 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 □ FEBRUARY 1968 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal Joans 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.i N.S.A. Extensions 1961 . 48,396 16,007 14,578 2,068 15,744 1962 ..................................... 55,126 19,796 15,685 2,051 17,594 1963....................................... 61,295 22,292 17,102 2,198 19,703 1964...................................... 67,505 24,435 19,473 2,204 21393 1965...................................... 75^508 27,914 21354 2,238 23,902 1966...................................... 78,896 28,491 23,502 2,136 24,767 1967...................................... 81,263 27,221 25’,787 2,076 26,179 1966--Dec............................. 6,433 7,442 2,297 2,178 1,928 2,720 159 140 2,049 2,404 1967--Jan................. 6,501 5,674 2,240 1,923 2,031 1,808 157 120 2,073 1,823 Feb............................. 6,497 5,488 2,177 1,916 2,099 1,655 169 126 2'052 1,791 Mar........... 6'510 6'641 2,199 2,350 2,049 1,985 169 159 2,'093 2,147 Apr............................. 6'606 6,'495 2,217 2'294 2,095 1,927 170 163 2,124 2,111 May........................... 6,554 7,062 2’238 2,559 2,032 2,074 180 219 2'104 2’,210 J une................ 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 2305 2,222 2,242 2,375 180 178 2,305 2,257 Dec..................... 7^035 7; 829 2,306 2,094 2,321 3^88 169 141 2,*239 2,506 Repayments 1061 47,700 16,472 14,246 2,015 14,967 1962............................... 50,620 17,478 14,939 1,996 16,206 1963..................................... 55,171 19,400 15,850 2,038 17,883 1964 ..................................... 61,121 21,676 17,737 2,078 19,630 1965..................................... 67,'495 24,267 19,355 2,096 21,777 1966................................ 72,805 26,373 21,361 2,060 23,011 1067 ................................... 77,973 26,985 24,293 2,096 24,599 1966­-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 I ,993 167 168 1,970 1,959 Feb............................ 6,281 5,905 2317 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 21186 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 2i 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 Dec............................. 6,652 6,563 2,250 2,1 14 2,167 2,100 167 158 2,068 2,191 Net change in credit outstanding 2 1061 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 1966 ..................................... 6,091 2,118 2,141 76 1,756 1067 ............................... 3,290 236 1394 -20 1 ,580 1966--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 Dec............................. 383 1,266 56 -20 154 988 2 -17 171 315 i Includes adjustments for differences in trading days. sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less repay- the amount of extensions and repayments without affecting the amount ments. outstanding. . For back figures and description of the data, see “Consumer Credit,” Note.—Estimates are based on accounting records and often include Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, financing charges. Renewals and refinancing of loans, purchases and and May 1966 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 e c s e Ot i h ns e t r i t f u in ti a o n n c s ial Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.* N.S.A. Extensions 1961 ................................... 48,396 17,711 10,667 12 282 7,736 1962...................................... 55,126 20^474 11,999 13,525 9,128 1963...................................... 61,295 23,344 12,664 14,894 10,393 1964,..................................... 67,505 25/950 14*020 16,251 11'284 1965...................................... 75,508 29*738 15*075 18,120 12'575 1 %6...................................... 78,896 31,114 14,951 18,986 13,845 1967 ..................................... 81'263 32'314 14', 675 19’633 14,641 1966—Dec............................. 6,433 7,442 2,553 2,523 1,241 1,374 1,570 1,822 1,069 1,723 1967—Jan.............................. 6,501 5,674 2,588 2,348 1,190 1,033 1,563 1,333 1,160 960 Feb........................... 6'497 5,488 2'537 2'231 1^15 1 ;032 1'577 1,349 1,168 876 Mar............................ 6'510 6,641 2,558 2*662 1,199 1,229 1'598 1,649 1'155 1,101 Apr............................ 6'606 6,495 2,631 2,688 1 ,212 I J68 1,589 1,559 l'174 I',080 May............................ 6'554 7^062 2,577 2'891 1,193 1 ^278 1'614 1 '728 1,170 1,165 June........................... 6*823 7'458 2,698 3,004 1 '235 1'367 1 697 1*875 1,193 1,212 July............................ 6', 776 6,859 2,738 2^857 1 ,200 1,223 1,601 1,627 1'237 1'152 Aug............................ 6,929 7,223 2; 796 2,945 1 ,’203 1 '260 1,677 1 ,'775 J ,'253 1 ,'243 Sept........................... 6,973 6,590 2,828 2,636 1 ,206 1,142 1’675 l’588 1 '264 1/24 Oct............................. 6,942 6',912 2,767 2'769 1 '263 I ,284 1,686 1 ^606 1,226 1,253 Nov............................ 7,032 7,032 2,785 2'633 1 ',283 J ,283 1 ,698 1,707 1,266 1 ',409 Dec............................. 7,035 7,829 2^814 2,650 1 ,275 1,376 I ,656 1 ,837 1 ;290 I ^966 Repayments 1961..................................... 47,700 18,294 10,943 11,715 6,749 1962 ................................... 50^620 18,468 11'434 12^593 8,125 1963....................................... 55,171 20,326 12,211 13,618 9,016 1964 .................................... 61,121 22'971 13'161 14,’825 10,164 1965 .................................... 67*495 25’663 13^699 16*443 11^690 1966..................................... 72'805 28’132 14,153 17,474 13,046 j 967...................................... 77'973 30 477 14,760 18 677 14,059 1966—Dec............................. 6,112 6,277 2,418 2,346 1,198 1,228 1,467 1,626 1,029 1,077 1967—Jan,.......................... 6,221 6,315 2,435 2,470 1,190 1,155 1,500 1,492 1,096 1,198 Feb........................... 6,281 5,905 2,446 2^297 1,188 1,150 1,510 1,361 1/37 1,097 Mar............................ 6^246 6,648 2'412 2'561 1’187 1,332 1,540 1 '607 1,107 1,148 Apr............................. 6'393 6,246 2,516 2'457 1,192 1,171 1 '536 1 '495 1,149 1,123 May............................ 6,361 6,612 2,483 2,630 1,193 1,253 1,540 1,579 1,145 1,150 June........ 6,531 6'697 2'548 2*598 1'234 1'261 1 '585 1'668 1,164 1,170 July............................ 6^551 6'562 2’562 2,588 1'215 1,197 1,564 1,593 1,210 1,184 Aug............................ 61585 6,682 2,566 2'644 1 '255 1,252 I ,578 1 '592 1,186 1,194 Sept.................... 6,689 6,440 2,616 2’535 1 '252 1'196 I '615 1 ,532 1,206 1,177 Oct............................. 6,631 6,728 2,600 2’683 1,249 1,287 1,573 1,552 1,209 1,206 Nov........................... 6,614 6,575 2,579 2,537 1,263 1,259 1'572 1 ,577 1,200 1,202 Dec............................. 6,652 6', 563 2^640 2’477 I ^246 I ’247 1 ,527 1 ^629 1,239 1 ,210 Net change in credit outstanding 2 1961...................................... 696 335 -199 578 -20 1962...................................... 4.506 1 ,997 921 932 656 1963 ........................... 6,124 3,018 1,329 1,276 501 1964...................................... 6,384 3^065 1,239 I ’426 654 (965....................................... 8,013 4,’075 1,376 1 ,’677 885 1966...................................... 6'091 2,982 '798 1,512 799 1967...................................... 3,290 I ,837 -85 *956 582 1966—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 Dec............................. 383 1,266 174 173 29 129 129 208 51 756 1 Includes adjustments for differences in trading days. payments for some particular holders do not equal the changes in their 2 Net changes in credit outstanding are equal to extensions less repay­ outstanding credit. Such transfers do not affect total instalment credit ments, except in certain months when data for extensions and repayments extended, repaid, or outstanding. have been adjusted to eliminate duplication resulting from 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. □ FEBRUARY 1968 MARKET GROUPINGS (1957-59 = 100) 19 p 5 r 7 o - ­ 59 1966 1966 1967 Grouping por­ aver­ tion age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec. Total index................................... 100.00 156.3 159.5 158.2 156.6 156.4 156.5 155.6 155.6 156.6 158,1 156.8 156,9 159,5 161.8 Final products, total......................... 47.35 155.5 159.6 158.1 157.0 157.1 157.3 156.3 156.8 157.1 158.2 157.0 156.9 160.0 161.7 Consumer goods........................... 32.31 147.5 149.8 148.0 146.1 146.6 147.1 146,0 146,9 147.1 148.6 147.0 147,9 150.0 152.4 Equipment, including defense.... 15.04 172.6 180.7 179.9 180.3 179.6 179.2 178.5 178.1 178.4 178.9 178.6 176. 1 181,5 181.7 Materials.......................................... 52.65 157.0 159.2 157.9 155.8 155.5 156.0 154.6 154.9 156.1 157.9 156,7 157,4 159,4 162.0 Consumer goods Automotive products.......................... 3.21 163.0 162.6 147.0 135.7 144.6 151.3 145.8 151.2 155.2 161. / 142.1 145.2 152.4 169.8 Autos................................................ 1.82 169.5 167.3 141.3 120.5 136.5 149.6 149.9 156.0 160,7 163,7 133.4 135.3 144.5 175.1 Auto parts and allied products........ 1.39 154.4 156.4 154.4 155.7 155.3 153.6 140.5 144.8 148.0 157.8 153.6 158.2 162.9 162,8 Home goods and apparel................... 10.00 153.0 153.3 152.8 149.5 147.9 145.9 144.1 143.9 144.0 147.9 148.7 149.9 152.9 152.7 Home goods..................................... 4.59 168,9 168.1 168.0 164.1 162.7 158.9 158.5 156,6 157,3 163.4 164,1 166.4 170.7 168.5 Appliances, TV, and radios.......... 1.81 166.6 160.2 160.5 156.9 152.9 144.2 143.8 138,6 143,3 155.0 155,9 162,9 168.4 158.4 Appliances................................. 1.33 166.7 151.9 158.9 154.8 151.3 149.4 147.0 149,7 152,2 153.9 153.7 164.2 168.7 160.4 TV and home radios................. .47 166.3 183.7 164.8 162.9 157.2 129.6 135.0 107.3 118.0 158.3 162.0 159.2 167,6 152.7 Furniture and rugs....................... 1.26 165.7 163.5 163,4 158.5 157.4 157,9 157.2 157.3 156.3 156,9 157.8 159.7 163.4 167.0 Miscellaneous home goods........... 1.52 174.3 181.4 180,7 177.3 178.6 177. 1 177.1 177,3 174,8 178,8 179.0 176. 1 179.5 181.7 Apparel, knit goods, and shoes....... 5.41 139.5 140.7 139.9 137.1 135.5 135,0 131.9 133,2 132.8 134,8 135,7 136.0 137,7 Consumer staples.............................. 19.10 142.0 145.8 145.7 146.1 146.3 147.1 147.0 147.8 147.3 146.9 146.9 147.3 148.1 149.3 Processed foods................................ 8.43 126.4 130,0 130.4 130.2 129.6 129.6 130.3 130,2 129,0 129,8 129,7 129.5 129.5 130.2 Beverages and tobacco..................... 2.43 133 2 134.6 133 3 135.9 136.0 136.1 133.2 136.5 136.3 137 9 135.8 137.6 136.5 Drugs, soap, and toiletries............... 2.97 173.5 180.1 179.2 180.5 181.2 182.4 182.3 182.7 184.0 178,0 179.8 181.6 183.0 184.5 Newspapers, magazines, and books. 1.47 136.5 139.1 141.5 142.3 142.3 143.6 142.5 141.4 142.1 140.9 136,2 134.8 135.7 138.9 Consumer fuel and lighting............. 3.67 159.9 164.5 162.9 162.7 164.2 166.6 166.9 169.3 168,3 168.8 170.5 171,2 174.5 Fuel oil and gasoline.................... 1.20 128.5 129.2 125.5 125.7 128.0 131.9 130.5 135.9 131.3 130.7 138.5 138. 1 136.8 138.3 Residential utilities........................ 2.46 175 2 181.7 181.2 180.8 181.9 183.5 184,6 185.6 186.4 187.4 186.0 187.4 192.9 Electricity........................ 1.72 186^6 194.5 194.4 193.9 195 4 197.3 198.6 199.5 200.4 201 6 199.5 201.4 209.1 Gas............................................ 74 148.9 Equipment Business equipment............................ 11.63 181.2 188.9 186.9 186.6 184.4 183.5 182.1 181.3 180.8 180.6 179.8 176.9 183.8 183.2 Industrial equipment........................ 6.85 172.3 179.1 177.3 176.8 174,1 172.1 169.1 169.0 169,0 166.8 166.6 162.3 170.5 169,2 Commercial equipment.................... 2.42 190.1 196.0 196.7 199.8 199.1 201.7 200,8 200,5 201.1 201 .9 200.3 199,0 200.9 204.5 Freight and passenger equipment... 1.76 208.3 220.3 214.5 215.0 211.7 210.4 211,7 208,9 210.2 214.1 210.4 209.9 222.9 228.4 Farm equipment............................... .61 167.5 179.5 176.1 162.6 162.8 161.5 167.6 162.8 148.6 154.3 158.5 157.5 153.0 ......... Defense equipment........................... 3.41 Materials Durable goods materials................... 26.73 156.9 156.8 154.2 151.3 151.5 151.0 149.7 148.9 149.7 151.8 148.5 149.0 152.4 155.9 Consumer durable............................ 3.43 166.5 158.3 148.6 142.8 139,5 137.5 143,7 143,3 141.8 142,7 134.9 133.3 143.8 161.2 Equipment.... ................................ 7.84 180.7 190.3 190.6 186.5 185,6 183.2 180.9 179.6 181.2 186.3 184.7 184.1 186.0 185.4 Construction..................................... 9.17 141,7 139.9 138.9 139.2 139.7 139,2 137.1 137.2 138.1 139.0 140.0 139.3 141.2 143.9 Metal materials n.e.c........................ 6.29 144.3 139.7 139.7 140.3 135.6 133.9 130.0 130.1 132.4 129.8 125.1 128,6 132.1 138.7 Nondurable materials........................ 25.92 157.2 161.6 161.6 160.4 159.7 161.1 159.6 161.1 162.6 164.2 165.2 166.0 166.7 168.2 Business supplies............................ 9.11 149.0 152.8 152.6 151.0 150.0 153,4 150.1 151.3 150.9 151 .7 153.1 152.5 152.9 153,4 Containers..................................... 3.03 145.6 151.1 146.6 147,1 144.6 148.5 146.2 145,1 141.7 143,0 150.4 153.7 152.6 153.2 General business supplies............. 6.07 150.6 153.7 155.6 153.0 152.7 155,8 152.0 154.4 155.5 156.0 154.5 151.9 153.0 153.5 Nondurable materials n.e.c............... 7.40 193.4 199.5 199.7 198.2 197.1 195.7 196.0 196.1 195.8 198,9 203.0 206.8 209.3 214.4 Business fuel and power................... 9.41 136.6 140.3 140.4 139.6 139.8 141.3 140.3 143.0 147.7 149,1 147,3 146.9 146,7 146,3 Mineral fuels......................... 6.07 122.5 125.9 125.0 123.6 123.2 125.3 124.3 128.2 135.1 137,1 133.4 131.0 130,3 129.8 Non residential utilities................. 2.86 172.9 177.5 180.0 180.2 181.9 182.1 181.0 181.1 182.1 182.5 183.8 187.9 188,1 ......... Electricity................................. 2.32 174.4 179.0 181.8 181.7 184.0 184,4 183.2 183.4 184,6 185,1 186.6 191.6 191.8 General industrial................. 1.03 171.7 177.1 178.8 178.3 178.9 179.0 180,5 180.6 182.9 183 9 185,5 186.6 187.7 Commercial and other........... 1.21 184.0 188.4 192.4 192.8 196.6 197.3 193.7 194.1 194.5 194 5 196.1 204.9 204,4 Gas............................................ .54 166.1 Supplementary groups of consumer goods Automotive and home goods........... 7.80 166.5 165.8 159.3 152.4 155.2 155.8 153,3 154.3 156.4 162.5 155,0 157,7 163.2 169.0 Apparel and staples.......................... 24.51 141.4 144.7 144.4 144.1 143.9 144,4 143.7 144.6 144.1 144.2 144.4 144.8 145.8 For footnotes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ INDUSTRIAL PRODUCTION: S.A. A-53 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1966 1967 Grouping pro­ 1966 por­ aver­ tion age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec. Total index................................... 100.00 156.3 159.5 158,2 156.6 156.4 156 5 155.6 155.6 156.6 1 58.1 156.8 156.9 159.5 1618 86.45 158.6 161.7 160.1 158.5 158. 2 I 58 2 157.2 157.0 157.6 159 4 158.1 158. 3 160.9 163. 7 Durable........................................ 48 07 164 8 167.7 165 5 162.9 162.6 162 5 162 2 161.5 162 5 163 6 161.1 160.7 164.2 168.0 Nondurable................................... 38.38 150.8 154 I 153,4 152.9 152.6 152 8 151 1 151 4 151 5 154 0 154.2 155.2 156 8 158 3 Mining.............................................. 8.23 120'. 5 123.8 123,2 122.4 121 5 122 0 120.2 123.8 128.0 1 27 8 124. 3 122.4 1 23 6 123.1 Utilities.......................................... 5.32 173.9 179. 4 180.6 180.5 181.9 182 .'7 1 82. 7 183.2 184J 184^8 184. 8 187. 6 190.3 191.5 Durable manufactures Primary and fabricated metals.......... 12.32 151.5 151.2 147,5 146.3 143.9 143.0 142.8 142.9 142.8 142.3 141.8 143.3 145. 7 150.3 Primary metals................................. 6.95 142.7 137.6 132.6 131.9 129.2 129 1 128.9 129 0 129.6 129 3 129.2 131.7 1 34.9 140.4 Iron and steel.................. 5.45 136.2 130.1 124.9 124.8 123.7 122'7 122.9 1212 122.3 1 24 3 125.6 127.7 1 33.3 140.6 Nonferrous metals and products.. 1.50 166.2 163.5 163.5 167.2 162. 1 161.4 154.4 156,4 155.3 144,2 141.1 142.8 141.9 143.9 Fabricated metal products............... 5.37 163.0 168.7 166.7 165.0 162.9 161.0 160.8 160.8 159.8 159 1 158 1 158 2 159.7 163.0 Structural metal parts.................. 2.86 158.8 161.4 160 7 160.9 160.1 158 1 156.4 156,9 156.1 156 8 156.0 156.4 1 58.8 160.2 Machinery and related products. .... 27.98 176.1 181.5 179.5 175.8 176.7 176.5 176.5 175.5 177.5 179.6 175.0 173.4 178.0 181.8 M achinery........................................ 14.80 183.8 190.3 190 3 186 8 184 5 182 1 180 5 177 5 180 0 182. 8 1 82. 2 179 6 183 5 182.1 Nonelectrical machinery............... 8.43 181.9 190.4 190.7 187. 3 185 2 183*5 181 .7 181 3 182 2 1 82 6 1 82 1 177,2 181.3 179 5 Electrical machinery..................... 6.37 186.4 190.2 189.7 1 86.2 183.6 180 3 178.9 172.4 177. 1 183 2 182 4 182.8 186 3 185.7 Transportation equipment............... 10.19 166.9 169.1 162.6 157.5 162 6 165 7 167.5 169 3 170.8 171*9 1 59 2 159.2 165.6 177.4 Motor vehicles and parts............. 4.68 168.7 163.7 147.2 136.5 143 8 149.5 152.0 154 5 156.7 158 0 1 29 4 128.6 141.4 166.4 Aircraft and other equipment. , .. 5.26 165.0 173,7 176.0 175.6 178.8 179.'8 181.4 181.8 182.6 183^6 184.3 185,2 186.0 186.8 Instruments and related products. .. 1.71 176.5 184.6 186,2 183.4 185,8 185.2 185.3 184.1 182.9 183.2 183.1 183.2 185.4 186.5 Ordnance and accessories................ 1.28 Clay, glass, and lumber..................... 4. 72 132.9 128.8 128 6 128. 9 128 4 129 8 127 8 176 7 127 3 1^6 7 1^9 6 131.4 132 4 135.5 Clay, glass, and stone products........ 2,99 140.7 138. 1 137.2 136.9 134/9 136^0 134^8 133.5 134J lae^O 138/ 139.7 139.2 143.5 Lumber and products...................... 1.73 119.4 112,8 113,7 1 15.2 117 3 119.1 115 6 114 9 115 5 109 2 114 3 117 0 120.6 121.8 Furniture and miscellaneous.............. 3.05 165.0 168 1 166 3 163.9 16^ 4 162 9 162 3 161 5 159 I l 59 9 161 4 160 9 161.5 164.1 Furniture and fixtures.................... 1.54 171.9 175 2 172.1 170.6 166 5 166 5 1665 166*3 162*7 164*8 166 3 1 66 6 167 8 171.3 Miscellaneous manufactures............ 1.51 157.9 160.9 160.3 157. 1 158,2 159^2 158.1 156^7 155^4 154/9 156^4 155.0 155.1 156.8 Nondurable manufactures Textiles, apparel, and leather. .......... 7.60 141.6 142.2 140.3 137.6 135.5 1 35 5 135.3 134 8 135 3 137 6 139 1 140. 4 143, 2 146.5 Textile mill products........................ 2.90 142.5 141 7 140,7 138.9 138.8 137'8 137 8 136 6 136 8 1 38 7 141 3 144.9 147 4 152.8 Apparel products............................. 3 59 150.1 152 2 150.2 147. 1 143.6 142'5 142 6 142 4 144 2 146*4 146 8 146 2 149 0 Leather and products...................... i j i 111.7 111,1 107.7 103. 7 101,0 107*1 1050 105.4 103 0 106 5 108 4 109.7 113 4 Paper and printing........................... 8.17 146.4 147.4 148.4 148. 7 149.5 149 9 149.1 149.4 148 6 150 3 148 5 148 6 149.9 150.0 Paper and products.......................... 3.43 152.1 152.6 152 5 152 4 152,4 152 1 151 4 151 6 149 0 152*8 1 52 9 154 5 156 1 157.9 Printing and publishing.................... 4.74 142.1 143.7 145 5 5 46.1 147 4 148 3 1 47 4 147 8 148 3 148*6 1 45 4 1 44 3 1 45 5 1 44 3 Newspapers......................... 1 53 134 2 133 2 1 33 7 134 8 132 8 133 8 133'1 134* 3 136 1 1 37 0 135 7 1 34 0 134'4 129.9 Chemicals, petroleum, and rubber.... 11.54 181.9 188.6 187.1 186.5 186.8 186.4 182.2 183.0 184.0 189.5 191.2 192.8 194.9 197.4 Chemicals and products........... .... 7 58 193 2 201 0 200 3 200.6 201.1 200 1 199 6 199 9 20! 0 200 7 202 3 205 5 206 7 209.8 Industrial chemicals...................... 3 84 221.0 231 7 231 6 230.9 231 3 228 3 228*8 227 5 227*6 231 *4 714 2 238 8 242* 3 Petroleum products.......................... L97 128. 3 129 0 128.7 1 27 4 130' 1 133'1 132* 1 134 4 132 8 133 2 137 0 137*6 138 8 139.8 Rubber and plastics products.......... 1.99 191.9 200 7 195 1 191.6 188.4 186 9 165*7 166 9 170*1 203* 1 9QT 4 199 J 205* 5 Foods, beverages, and tobacco.......... 11.07 128.1 131.2 131.0 131.5 131 1 131 8 130 9 131 3 130 9 I3l(i 130 4 13! 1 13/ 5 131 9 Foods and beverages................. 10,25 128.7 132.1 132 0 132.4 132 3 133 1 132 0 131*9 131*5 1317 13(2 132 2 132 8 1332 Food manufactures...................... 8 64 126.6 130,2 130 4 130.3 129 7 130 6 130 * 3 129 9 129*4 129*0 |29 3 130 1 130.5 Beverages...................................... 1 61 139 9 142 4 140 8 143.9 146 ( 146 3 141 *2 142*9 142 8 146 3 1 41 Q 147 5 147 1 Tobacco products............................ ^82 120^0 H^J t (8 5 (20.2 1(6’2 UGA) (H^ 123'9 123.6 i 2!' 4 120 2 U8/3 H5.*5 Mining Coal, oil, and gas............................. 6 80 117 8 120 8 119 8 /19.0 117 6 118 5 118 0 12! 7 128 0 128 8 115 d 123 7 124 5 123 3 Coal................................................. 116 117'0 1276 120 7 I ] 5 7 115 1 125 5 120 1 >22*5 122*6. 1 17 6 1I 1I SJ « J5 112 3 115 3 116 1 Crude oil and natural gas................ 5 64 118 0 119 4 119 7 119 6 1181 117 1 117 5 1216 129 1 1 31 2 1 77 5 126 1 1 26 4 124 6 Oil and gas extraction.................. 491 123'8 125 5 126 1 1 25 4 125 1 175 ~ 3 125*3 129 5 1 38 0 141 9 1 17 7 1 35 4 133 8 133 0 Crude oil................................... 4 25 119 3 120 8 121 0 120 0 120 1 119 6 119 6 123 6 133^9 138 0 134.1 1 30 3 128 8 128 0 Gas and gas liquids.................. ^66 152^0 155'4 158^4 160^0 156^7 161.5 161.3 167 J Oil and gas drilling....................... .73 79. 1 78.1 76.3 80.5 71.0 61.8 65.5 67.7 69.0 58.9 58.5 63.4 76.1 68.0 Metal, stone, and earth minerals....... 1 43 133.5 137 9 139 4 138.9 140 0 138 7 1 30 8 133 6 1^7 7 123 4 t tQ 1 116 2 110 5 127 6 Metal mining................................... 61 133 4 06 1 140'3 1 42 1 143'7 149 5 I 32'9 1330 110 7 Stone and earth minerals................. .82 133^5 139^3 138'.'7 136.6 137^2 130^6 129.2 133.3 133^7 136.6 136.5 132.9 139.0 143^2 Utilities Electric............................................. 4 04 179 6 185.6 187,2 186.9 188,8 189 9 189 7 190.3 191 4 192 I t Q7 t 195 8 199 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-54 INDUSTRIAL PRODUCTION: N.S.A. □ FEBRUARY 1968 MARKET GROUPINGS (1957-59 = 100) 1957-59 1966 1967 pro­ 1966 Grouping por­ aver­ tion age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec, Total index.................................. 100.00 156.3 156.9 156,4 156.6 157.0 157.9 156.0 159.0 150,5 157.9 161.1 161.5 161.2 160.4 47.35 155.5 157.2 157.0 156.8 157.2 157.7 155.2 159.8 151.2 156.9 163.3 162.2 161.3 160.8 Consumer goods,.......................... 32.31 147.5 145.4 145.9 145.8 146.2 147.1 144.2 150.5 139,9 147.7 155.7 155.4 151.9 150.0 Equipment, including defense. . .. 15.04 172.6 182.4 180,7 180.4 180.8 180.3 179.0 180.0 175.3 176.4 179.5 176.8 181.6 184.1 Materials.......................................... 52.65 157,C 156.6 155.9 156,5 156.7 158.1 156.6 158.3 150.C 158.9 159.1 160.8 161,0 160.1 Consumer goods Automotive products................ 3.21 163,0 165.5 154.6 142.2 151.8 161.9 155,1 162.5 114.2 106.1 148.2 155.6 159.5 177.5 Autos,............................................ 1.82 169.5 175.7 155.4 132.6 151.5 167.6 166,4 177.1 94.8 62.2 140.1 148.8 159,0 192.6 Auto parts and allied products........ 1.39 154.4 152.1 153.7 154.8 152.3 154.2 140,3 143.2 139.8 163.9 158.8 164.6 160.1 157.7 Home goods and apparel............ 10.00 153,0 146.5 147.9 154.2 151.3 149.8 144.0 148.6 132.7 149.0 155.0 159.6 158.0 148.3 Home goods.................................... 4.59 168.9 170.9 164.7 167.8 165.9 161.8 159.8 161.6 145.9 159,3 172.0 180,1 180.2 172.8 Appliances, TV, and radios......... 1,81 166,6 163.1 159.3 171,2 164.0 157.0 152,0 152.8 128.0 140.4 165.1 182.2 181 4 160 4 Appliances................................ 1.33 166.7 155.2 161.8 171.1 167.0 169.8 159.7 169.9 141.8 134.5 160.4 180.1 178.2 163,1 TV and home radios................ .47 166.3 185.5 152.3 171.4 155.5 120.7 130,5 104.6 89,3 157.2 178.2 187.8 190 4 152 7 Furniture and rugs.................. 1.26 165.7 169.6 159.8 156.6 155.5 153.5 151.2 155.4 148.8 160.5 163.8 168.0 169.4 173,2 Miscellaneous home goods.......... 1.52 174.3 181.4 175.3 172.9 176,6 174.4 176.0 177.3 164.8 180,6 187.1 187.7 187. 8 187.2 Apparel, knit goods, and shoes..... 5.41 139.5 125.9 133.6 142.6 138,9 139.7 130,6 137.6 121.5 140,2 140,5 142,3 139.1 Consumer staples.......................... 19.10 142.0 141.4 143.4 142.0 142.6 143.3 142.4 149.4 148.0 154.1 157.4 153.2 147.4 146 2 Processed foods............................... 8.43 126.4 126.5 123.9 121.7 120.9 121.3 122.5 128.9 128.4 137.1 149.7 143.7 134 4 128^0 Beverages and tobacco.................... 2.43 133.2 116.3 117.3 124.3 133.0 141,8 143,0 156,2 142.8 149.3 139,3 141.6 129.4 Drugs, soap, and toiletries............. 2.97 173.5 176.0 179.2 178.7 179.4 185.1 180.7 189.1 179.4 183,9 185.2 186,0 184 0 185 4 Newspapers' magazines, and books. 1.47 136,5 138.8 140.2 141.7 144,4 144.2 142.1 140.8 140.7 142.6 137,4 134.7 133.9 138^6 Consumer fuel and lighting............. 3.67 159.9 165.5 176.8 169,8 167.7 159.0 156.2 163,2 173.7 176.7 172.3 162.5 164.3 Fuel oil and gasoline.................... 1,20 128.5 132.2 130.8 128,8 126.7 125,0 126.2 134.3 133.6 134.5 138.5 134,5 135.9 141 6 Residential utilities....................... 2.46 175.2 Electricity................................. 1.72 186,6 194.5 220,2 206,7 203.6 186.1 178.8 187.5 210.4 215.7 203.5 185.3 188.0 Gas........................................... .74 148.9 Equipment Business equipment........................... 11.63 181.2 189.8 187.3 186.7 186.2 185.5 183.2 184.2 177.4 178.0 181.1 177.3 182 5 184.8 industrial equipment........................ 6 85 172 3 180.2 177 7 175 9 174.3 172 1 169.3 170.7 167.3 166.3 168 1 161 3 169 0 171 I Commercial equipment.................... 2.42 190,1 200.3 196.9 198 4 197.3 197.9 198.4 201 1 198.3 201.9 203.3 202 4 205 9 209 0 Freight and passenger equipment. .. 1.76 208,3 218.1 214.5 215.0 218.0 222,0 218.1 217.3 202.8 205.5 212.5 215.1 218.4 226.1 Farm equipment.............................. .61 167,5 174.9 179.3 180.6 183.8 181.6 178.0 173,3 134.9 135.8 148,6 147.9 137,3 Defense equipment........................... 3.41 Materials Durable goods materials................... 26.73 156 9 154.5 152.2 151.5 151.9 152.5 152 5 154.3 145.0 152.5 152 0 152.6 153 8 154.6 Consumer durable.......................... 3.43 166.5 166,2 153 8 144 9 143.7 141 6 148 0 146 2 123 4 147.0 133 6 135 3 148 1 169 3 Equipment........................................ 7.84 180.7 193'2 192.3 188,2 187,6 185 2 182^2 181 4 175.6 180.7 182 9 183 5 186 2 1882 Construction.................................... 9.17 141.7 131 5 128 5 129 5 133 4 137 8 139 2 146 9 143.6 148.7 148 4 147 0 142 3 135 3 Metal materials n.e.c................. 6.29 144.3 133 6 136.1 14116 138 9 139.3 137 2 135 6 120.5 126,0 1289 1317 1332 132^6 Nondurable materials...................... 25.92 157.2 158 7 159 7 161.7 161 7 163 9 160.9 162 4 155 2 165.4 166 4 169 3 168.5 165,9 Business supplies............................. 9.11 149 0 147.7 147 2 150 4 152 8 157 7 152 6 1540 141 5 151 9 1 54 9 158 6 155 0 149 9 Containers.................................... 3.03 145 6 134 0 139 3 1453 145 3 153 8 147 7 153 1 138.2 153 0 155 5 161 5 148 3 141 0 General business supplies........ 6.07 150.6 154 5 151 2 153 0 156 5 159 7 155 0 154 4 143 1 151.3 154 5 1572 158 4 154.3 Nondurable materials n.e.c.............. 7.40 193 4 195 5 198 7 202 2 200 1 201.6 198 9 199 0 184 6 198 9 203 0 210 9 213'5 210 1 Business fuel and power.................. 9.41 136 6 140 4 141 I 140 6 140 1 140 2 139 0 141 9 145 3 152 1 148 7 146 9 146 1 146 5 Mineral fuels................................ 6^07 122.5 127^3 127^0 127^6 125:8 126.9 124^3 125:2 128.1 135 5 131 9 131 5 1316 1313 Nonresidential utilities................. 2.86 172.9 Electricity............................ 2.32 174 4 175 2 178 9 174 3 178 0 175 7 178.2 187 5 193 9 201 8 197 2 190 2 185 9 General industrial................. 1.03 171.7 175.3 177 9 172.8 178.0 176 7 181 4 1842 182 0 189,4 188 3 187 0 187 7 Commercial and other.......... 1.21 184.0 182.7 187.6 183.2 186.0 182.5 183.4 198.9 213.0 221.7 214J 202:0 193.2 Gas............................................ .54 166.1 Supplementary groups of consumer goods Automotive and home goods........... 7.80 166.5 168.7 160.6 157,2 160.1 161.8 157.8 162.0 132.9 137.4 162.2 170.0 171.7 174.7 Apparel and staples... 7.................. 24.51 141.4 138,0 141.3 142,1 141.8 142.5 139.8 146.8 142.2 151.1 153,7 150.8 145.6 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ INDUSTRIAL PRODUCTION: N.S.A. A-55 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1966 1966 1967 Grouping p p r o o r ­ ­ a a v g e e r­ tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.T Nov.r Dec. Total index................................... 100.00 156.3 156.9 156.4 156.6 157.0 157.9 156.0 159.0 150.5 157.9 161.1 161.5 161.2 160.4 Manufacturing, total......................... 86.45 158.6 158.8 157.8 158.4 158.9 160.3 158.1 161.0 150.5 158.3 162.6 163.7 163.5 162.3 Durable........................................ 48.07 164.8 167.8 164.5 163.4 164.4 164.9 164.1 165.6 t54.7 158.9 163.8 164.4 167.1 169.4 Nondurable.................................. 38.38 150.8 147.6 149,4 152.1 152,1 154,4 150.6 155.3 145.1 157,4 161.2 162.9 158.9 153.3 Mining............................................. 8.23 120.5 122.6 121.4 121.9 120,1 122,1 121.8 123.9 124.8 129.0 125,6 124.7 124.2 122.2 Utilities. ................................. 5.32 173.9 Durable manufactures Primary and fabricated metals......... 12.32 151.5 147.7 146.9 148.2 146.7 146.5 145.0 145.3 135.1 142.2 145.1 146.0 147,9 149.4 Primary metals................................. 6.95 142.7 132. 1 134,6 139.4 137.2 136,5 133.4 130.9 117,9 125.4 129.2 133,0 136.2 136,2 Iron and steel............................... 5.45 136.2 126.8 127.4 131.0 129.9 127,6 125,4 121,2 111,9 120.6 125.6 129.6 134.6 137.1 Nonferrous metals and products.. 1.50 166.2 151.1 160.7 169,7 163.9 168,5 162,6 166.1 139.8 142.8 142. 1 145.5 141.9 133.0 Fabricated metal products............... 5.37 163.0 167.9 162.7 159.6 159,0 159.4 160,0 164.0 157.4 163.9 165.7 162.9 162.9 166.3 Structural metal parts.................. 2.86 158.8 163.0 157.5 154.5 153,9 153.4 154.8 160.0 156.1 160.7 162.2 161.1 161.2 161.8 Machinery and related products....... 27.98 176.1 184.8 180.7 177.9 179.5 179.7 178.8 179.8 166.9 169.1 175.8 176.2 181.0 186.0 Machinery........................................ 14.80 183.8 192.2 189.8 188.9 187,2 185,4 182.5 182,2 173.7 177.2 182.6 181.4 185.4 183.9 Nonelectrical machinery............... 8.43 181.9 191.7 190.7 189.9 190.4 189.0 186.2 186.4 177.6 175.8 179.7 174.0 180.2 180.8 Electrical machinery.................... 6.37 186.4 192.9 188.6 187.7 183.1 180.5 177.6 176.7 168.5 178.9 186,4 191.3 192.3 188.1 Transportation equipment............... 10.19 166.9 174.7 166.8 160.4 166,4 169.8 171.4 174,0 151.4 150.8 160.8 163.6 170.5 185.8 Motor vehicles and parts............. 4.68 168.7 169.2 155.0 142.4 151.0 157.0 160.4 165,2 119.5 116.0 134.0 137.2 149.1 177.4 Aircraft and other equipment. , . , 5.26 165.0 179.8 177,8 176,0 179.7 180.7 180,7 180.9 178.2 180.3 183.6 186.1 188.8 193.3 Instruments and related products,.. 1.71 176.5 186.8 184,0 182.5 184.9 184.8 183.4 185.9 181.1 184.7 185, t 185.2 186.9 188.7 Ordnance and accessories................. 1.28 Clay, glass, and lumber.................... 4.72 132.9 118.1 116.8 120.5 124.4 129.5 130.0 136.7 133.5 139.1 138.7 139.2 133.9 124.3 Clay, glass, and stone products....... 2.99 140.7 129.4 125.5 125.3 130.2 135.5 138,3 144.6 143.9 149.5 146.3 147.4 143.4 134.5 Lumber and products...................... 1.73 119.4 98.7 101,8 112,3 114.4 119,1 115,6 122.9 115.5 121.2 125.7 125.2 117.6 106.6 Furniture and miscellaneous......... 3.05 165.0 169.7 161.0 158.7 159.4 158.6 158.6 161.8 154.8 164,5 167.4 169,4 169.3 168.2 Furniture and fixtures...................... 1.54 171.9 178.4 168.7 166.3 164,5 162.0 161.5 166,0 160,3 169.4 171.3 172.9 172.5 177.8 Miscellaneous manufactures............ 1.51 157.9 160.9 153.1 150,8 154,2 155.2 155.7 157.5 149.2 159.5 163.4 165.8 166.0 158.4 Nondurable manufactures Textiles, apparel, and leather........... 7.60 141.6 130.1 137.9 144.3 140.7 142.3 135.2 139.2 121.9 142.0 142.6 146,9 144.9 136.8 Textile mill products........................ 2.90 142.5 131.8 140.0 141.7 138,8 144.0 141.9 140.7 124.2 142.2 144. 1 152.1 151.1 145.2 Apparel products............................. 3.59 150.1 137.0 145.7 156.7 152.9 152.5 141 2 148.8 129.1 150.8 151 6 153.5 150 5 Leather and products..................... 1.11 111.7 103.7 107.2 110.9 106 0 105.0 98'7 104.3 92.7 113 4 110.0 112.4 1111 Paper and printing............................ 8.17 146.4 144.2 146.1 149.3 150.6 153.5 150.2 150.8 139.7 149.0 150.5 156.3 153.1 146.6 Paper and products......................... 3.43 152.1 140.4 151.7 156.2 153.9 158.2 152,2 156.1 137.1 154.3 155.2 166.5 156.9 145.3 Printing and publishing................... 4.74 142.1 146.9 142.0 144.4 148.3 150.2 148.7 147.1 141.6 145.2 147,2 149.0 150.3 147.5 Newspapers................................. 1.53 134,2 136.5 123.0 129.4 134,8 142.5 141.9 135.0 118.4 125.4 135,0 143.8 147.8 133.1 Chemicals, petroleum, and rubber.... 11.54 181.9 183.7 184.9 187.6 187.8 190.2 183.6 188.5 177.5 190.8 194.7 197.2 196.4 195.2 Chemicals and products.................. 7.58 193.2 196.2 197.4 201.4 202,3 205.7 201.8 205.6 194.6 202.3 206, 1 209.0 210.0 209.2 Industrial chemicals,............ 3.84 221.0 229.4 228.1 234,4 233.6 232.9 231,1 230.9 219.6 230,2 237,7 243.6 248.4 Petroleum products......................... 1.97 128.3 125.9 124.8 124,9 125.5 127.8 130.8 138.4 139.8 140,3 142.5 139.0 137.0 136.4 Rubber and plastics products.......... 1,99 191.9 193.7 197. J 197.3 194.2 192.7 166.5 172.7 149.7 197.0 203.0 210.0 203 4 Foods, beverages, and tobacco....... 11.07 128.1 124.6 122.9 122.7 123.9 126.1 127.1 135.0 131.3 139.5 146.9 143.1 133.5 126.0 Foods and beverages....................... 10.25 128.7 126.8 123.4 122.9 124.6 125,9 127,6 135.2 133.1 140,1 148.6 144.2 134.8 128.6 Food manufactures..................... 8.64 126.6 126.9 124.5 122.2 121.3 121.7 122.6 129,0 128.1 136.7 149,0 143.5 134.7 128.2 Beverages...................................... 1.61 139.9 126.0 117.4 126.6 142 4 148.6 153.9 168.1 159.7 158.4 146.7 148.2 135 3 Tobacco products............................ .82 120.0 97.1 U7.2 119.6 114.5 128,5 121.6 132.6 109.4 131.4 124,9 128,5 117^8 ......... Mining Coal, oil, and gas................. 6.80 117.8 122.0 121.7 122.4 119.5 119.6 117.8 118.9 I2I.9 127.7 124.4 124.4 125.6 124.5 Coal................................................. 1.16 117.0 125.3 118.3 117.1 116,0 126.4 121,3 116.5 99.9 123.3 122,2 122,4 120.0 114.0 Crude oil and natural gas................ 5.64 118.0 121.4 122.4 123.5 120.3 118.2 117,0 119.4 126.4 128.6 124.9 124.8 126.7 126.7 Oil and gas extraction.................. 4.91 123.8 127.8 129.0 130.0 128.1 127.0 125.0 127.2 134.8 138.3 134.1 133.7 134.3 135.4 Crude oil.................................. 4,25 119.3 122,0 122.8 123.6 122.5 121.5 120.2 122.4 131.2 135.2 130.4 129,0 128,8 129.3 Gas and gas liquids.................. .66 152.0 164.9 168.7 171,0 163,9 162.0 155.7 157.9 Oil and gas drilling.................. .73 79.1 77.9 77.4 79.4 67,2 58.6 63.3 66.3 69.5 62.6 62.1 65.0 75.7 67.9 Metal, stone, and earth minerals....... 1.43 133.5 125.0 119.9 119.4 122.9 134.2 140.9 147.6 139.1 135.3 131.4 126.3 117.6 Hl.1 Metal mining................................... .61 133.4 122.5 123.5 127.9 127.9 139,0 146.2 151.3 128.1 114.2 108,0 100,4 86.7 85.4 Stone and earth minerals.......... .82 133.5 126.8 II7.3 113.2 119.1 130.6 136.9 144.9 147.2 150.9 148.8 145.5 140.4 130.3 Utilities Electric............................................. 4.04 179.6 183.5 196.5 188.1 189.0 180.1 178.4 187.5 200.9 207.7 199.9 188.1 186.8 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 □ FEBRUARY 1968 SELECTED BUSINESS INDEXES (1957-59== 100, unless otherwise noted) Manu­ Industrial production facturing 2 Prices 4 Ca­ pacity Nonag- Major market groupings utiliza­ Con­ ricul- Major industry tion struc­ tural Total Period Total Final products Mate­ groupings in c r ( e a p m n t e i t f o r ) g . t c t r i a o o c n n t ­ s T m p o e e l m t o n a y t ­ l ' ­ — i p m E lo m e y n ­ - 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 Con­ rials modity Total g s o u o m d e s r E m q e u n ip t ­ Mfg. M in i g n­ U iti t e i s l­ 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.................... 156.3 155.5 147.5 172.6 157.0 158.6 120.5 173.9 90. 5 145 121.8 113,3 151.4 148 113.1 105.9 1966—Dec.......... 159.5 159.6 149.8 180.7 159.2 161.7 123.8 179.4 590.0 133 123.9 114.7 154.4 148 114.7 105.9 1967—jan........... 158.2 158.1 148.0 179.9 157.9 160.1 123.2 180.6 I 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 Mar......... 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 Apr.......... 156.5 157.3 147.1 179.2 156.0 158.2 122.0 182.7 138 124.7 112.4 151.0 152 115.3 105.3 155.6 156.3 146.0 178.5 154.6 157.2 120.2 182,7 ”84.9 154 124.6 111.7 150.1 151 115.6 105.8 June......... 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 Sept......... 156.8 H57.0 ’'147.0 178.6 ”156.7 >■158.1 H24.3 184.8 168 125.8 111.2 154.5 156 117.1 106.2 Oct,......... 156.9 156.9 147.9 176.1 157.4 158.3 122.4 187.6 171 126.1 111.4 154.3 153 117.5 106.1 Nov......... 159.5 160.0 150.0 181.5 159.4 160.9 123.6 190.3 }”84.3 168 127.4 113.4 ”157.9 ”154 117.8 106.2 161.8 161.7 152.4 181.7 162.0 163.7 123.1 191.5 166 127.8 rl13.8 >160.8 154 118.2 106.8 1968—Jan.?....... 161.2 161.1 151.4 181.9 161.0 163.0 122.4 191.5 127.8 114.0 161.4 159 107.1 i Employees only; excludes personnel in the armed forces. Construction contracts: F. W. Dodge Co. monthly index of dollar 2 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 1966 1967 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total construction................................ 50,150 52,895 3,189 2,838 3,300 4,424 4,389 5,095 5,414 4,879 5,104 4,695 5,053 4,258 3,996 By type of ownership: Public.......................................... 18,152 19 039 1 287 1,113 1,188 1,509 1,498 1,820 2 169 1,989 1,824 1 677 1 ,526 1,435 1,507 Private........................................ 31,998 33,856 1302 1,725 2J12 2,916 2,891 3,275 3,245 2,890 3,280 3,018 3; 527 2,823 2,490 By type of construction: Residential building.................... 17,827 19,536 903 937 1,056 1,584 1,627 2,002 2,000 1,829 1312 1,741 1 ,887 1,717 Nonresidential building............. 19393 20 139 1,358 1,175 1,430 1’714 1 330 1 308 2,070 1 '749 1347 1 ’786 1'874 1’585 Nonbuilding............................... 12330 13,220 928 726 814 1,127 931 1,285 1,344 1,302 1,345 1,169 l',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

FEBRUARY 1968 □ CONSTRUCTION A-57 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Non­ Conser­ Total d f e r a e n r s t m i i ­ a l Total Indus­ Bu C i o ld m in ­ gs b O u t i h ld er ­ Other Total M ta i r l y i­ H w ig ay h­ d v e m a v t & e e i l o n o n t p ­ Other 2 trial mercial ings 1 1956............................ 47,601 34,869 20,178 14,691 3,084 3,631 2,103 5,873 12,732 1,360 4 415 826 6 131 1957........................ 49 J 39 35,080 19^006 16,074 3,557 3,564 2,435 6,518 14 059 1,287 4*934 971 6*867 1958............................ 50’153 34'696 19'789 14,907 2*382 3,589 2,704 6,232 15 457 1,402 5 545 1 019 7 491 19593.......................... 55i305 39,235 24,251 14'984 2,106 3,930 2,823 6^125 16,070 1,465 5*761 1’121 7*723 1960............................ 53,941 38,078 21,706 16,372 2,851 4,180 3,118 6,223 15 863 1,366 5,437 1 175 7 885 1961............................ 55'447 38,299 21’680 16,619 2*780 4,674 3,280 5^885 17,148 1,371 5 854 1 *384 8 539 1962 4.......................... 59,667 41,798 24,292 17^506 2*842 5,144 3 631 5,889 17 869 1 266 6 365 1 *524 8 714 19635........................... 63,423 44’057 26U87 17,870 2,906 4,995 3,’745 6,224 19,366 1,189 7*084 1*690 9,’403 1964............................ 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20 390 938 7 133 1 729 10 590 1965............................ 71'912 49’840 26,266 23,574 5,128 6,745 4,711 6,990 22 072 852 7,554 9’017 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 1967P.......................... 74,734 49'578 23*583 25,995 6J39 6,983 4,977 7,896 25'156 1966—Dec................... 72,169 46,410 19,844 26,566 6,469 7,027 5,011 8,059 25,759 755 9 058 2 309 13,637 1967—Jan.................... 74,836 48,334 19,928 28,406 7,130 7,925 5,426 7,925 26,502 716 9,489 2 302 13 995 Feb.................. 74,996 47’960 20'278 27,682 7,054 7,697 5,093 7,838 27,036 763 10 189 2,173 13 911 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 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 J 67 5,886 6^683 4^716 7,’882 24,322 617 8 168 1 885 13,652 July.................. 73,399 49,151 23^652 25,499 6,154 6,739 4^748 7'858 24’248 775 8 012 1 968 13 493 74,392 50,170 24,619 25,551 6,011 6,437 5 189 7 914 24,222 715 8*029 2*035 13>43 Sept.................. 76,295 51^726 25.306 26'420 6,577 6,731 5,082 8,030 24 ,’5 69 Oct................... 76,910 52,195 25,971 26,224 6,240 6,'991 5,'037 7,'956 24 ,’715 Nov.................. 77.826 52^622 26'602 26^020 5'592 7,234 5’203 7,991 25'204 Dec.”. ........ 77,842 52'316 26,948 25 ;368 5^736 6,589 5*032 8’011 25^526 1 Includes religious, educational, hospital, institutional, and other build- 5 Beginning 1963, reflects inclusion of new series under “Public” (for ngs. . State and local govt, activity only). 2 Sewer and water, formerly shown separately, how included in “Other.” Note.—Monthly data are at seasonally adjusted annual rates. Be­ 3 Beginning with 1959, includes data for Alaska and Hawaii. ginning with 1959, figures are Census Bureau estimates. Data before 4 Beginning July 1962, reflects inclusion of new series affecting most 1959 are joint estimates of the Depts, of Commerce and Labor. private nonresidential groups. NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership S.A. Government- (private only) underwritten Period Total Private Metro­ Non­ Total N fa o rm n­ politan p m o e li t t r a o n ­ Total fam 1- i ly fam 2- i ly M fam ul i t l i y ­ Public Total FHA VA 1956............................ 1,349 1,325 24 465 195 271 1957............................ 1,224 1'175 49 322 193 128 1958 ............................ 1,382 1,314 68 439 337 102 1959 ........................... 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 1960............................ 1,296 889 407 1,252 995 44 213 44 336 261 75 1961............................ 1,365 948 417 1,313 974 44 295 52 328 244 83 1962............................ 1,492 1,054 439 1,463 991 49 422 30 339 261 78 1963............................ 1,642 1,152 490 1,610 1 021 53 536 32 292 221 71 1964............................ 1,563 1,093 470 1,529 972 54 505 32 264 205 59 1965............................ 1*510 1*035 475 I J 473 964 51 458 37 246 197 49 1966............................ 1 *196 '808 388 1,165 779 35 351 31 195 158 37 1967............................ Pl,322 920 402 Pl,291 843 41 407 p30 233 180 53 1966—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 1 '094 1,067 93 63 30 92 67 2 23 1 18 14 4 Apr.................. 1’116 1 ’099 116 77 38 114 80 4 30 2 16 12 4 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 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 1 *496 1,478 137 99 38 135 82 5 49 2 25 19 5 Nov......... Pl'587 J’l ,564 Pl 20 85 35 Pl 18 69 3 46 p2 20 15 4 Dec.................. Pl,256 p1,241 J'83 64 20 p81 46 3 31 p3 19 16 4 Note.—Beginning with 1959, Census Bureau series includes both farm by area or type of structure. Data from Federal Housing Admin, and and nonfarm series developed initially by the Bureau of Labor Statistics. Veterans Admin, represent units started, based on field office reports of Series before 1959 reflect Census Bureau revisions that are not available first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-58 EMPLOYMENT □ FEBRUARY 1968 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Unemploy­ Period i T ns o t t i a tu l t n io o n n a - l l N ab o o t r i n f o t r h c e e T la o b t o a r l Employed1 m ra e te n 2 t po N p . u S l . a A ti . on N.S.A. f S o . r A ce . Total In nonagri- U pl n oy em ed ­ (pe S r .A ce . nt) In Total cultural agriculture 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 67'762 63^076 4,687 4.070 5.7 1964......................... 127,224 51,394 75,830 73,091 69,305 64,782 4,523 3,786 5.2 1965.................. .. 129’236 52^058 77,178 74,455 71'088 66'726 4,361 3^366 4.5 1966......................... 131'180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967......................... 133'319 52^527 80,793 77,347 74,371 70,527 3,844 2,975 3.8 1967 3r-—Jan............. 132,295 53,589 80,319 76,933 74,094 70,104 3,990 2,839 3.7 Feb............ 132’448 53,341 80,339 76,921 74,063 70’187 3; 876 2,858 3.7 Mar........... 132’627 53’678 80,112 76,676 73,822 69'964 3,858 2,854 3.7 Apr........ 132^95 53,234 80,263 76,814 73,939 70,096 3,843 2,875 3.7 May........... 132'969 53,419 79,958 76,502 73,550 69,822 3,728 2,952 3.9 June.......... 133’168 50,704 80,658 77,214 74,168 70'430 3,739 3,045 3.9 July........... 133,366 50,446 80,944 77,495 74,478 70,631 3,847 3,017 3.9 Aug........... 133’645 51'074 81 ,057 77,598 74,664 70,708 3'956 2,934 3.8 Sept........... 133,847 52^65 81,263 77,807 74'638 70,941 3’697 3,169 4.1 Oct............. 134’045 52,450 81 ,535 78,072 74,735 71,017 3,718 3,337 4.3 Nov........... 134,224 52,641 81 ,459 77,989 75,005 71,166 3,839 2,984 3.8 Dec............ 134'405 52,879 81,942 78,473 75^77 71,361 4,216 2,896 3.7 1968—Jan................ 134,576 54,765 81,386 77,923 75,167 71,164 4,003 2,756 3.5 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 ri u n f g ac­ Mining c C o o n t n i s o t t n r r a u c c t ­ T ti li o r c a n n u s & ti p l i o p ti r 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....................................................... 561702 161995 635 21963 3,903 111778 2,877 8,325 9,225 1964....................................................... 58,332 17,274 634 3,050 3,951 121160 21957 8,709 91596 1965...................................................... 601832 18’,062 632 3'186 4,036 12,716 3',023 91087 10,091 1966.................................................... 63,982 19,186 625 3,292 4,151 13,211 31102 91545 10,871 1967^..................................................... 66,062 19,'338 613 3,264 4,262 13,671 3,228 10,071 11,616 SEASONALLY ADJUSTED 1967—Jan............................................. 65,564 19,558 625 3,311 4,242 13,515 3,152 9,840 11,321 Feb............................................. 651692 19,507 624 31352 41247 131541 3,165 9,883 11,373 Mar........................................... 65,749 19,445 624 31313 4,246 13’557 3,179 91946 11,439 Apr............................................. 65,653 19,331 620 3 276 4,212 131572 3J94 9,973 11,475 May......................... 65,639 19,238 617 31192 41267 131609 3,205 9',987 11,524 June,....................................... 65,903 19,’285 619 3 1 i 87 41266 131648 3,227 10,035 11,636 July.................................... 651939 19J69 623 3,231 41292 131647 3,234 10,074 11,669 Aug............................................. 661190 19,318 606 3,223 41283 13,664 3,253 10,130 11,713 Sept.................................... 66,055 19,142 60! 3,238 41262 13J19 3,264 101161 11,668 Oct.............................................. 661243 191169 597 31236 41251 13,776 3,270 10,199 11,745 Nov.. ....................................... 66,918 19,422 597 3,289 4,287 13,900 3,290 10,297 11,836 Dec.p......................................... 67,110 19’490 599 3,346 41290 13’, 864 3,303 10,333 11,885 1968—Jan?’........................................... 67,146 19,533 596 3,226 4,288 13,896 3,3H 10,367 11,929 NOT SEASONALLY ADJUSTED 1967—Jan.............................................. 64,531 19,333 611 2,947 4,183 13,334 3,114 9,643 11,366 Feb............................................. 641491 191297 606 21863 4,175 131218 3,133 9,725 11,474 Mar............................................ 64,843 19,263 607 2,922 41191 131332 3,157 9,817 11,554 Apr............................................. 651215 19,181 614 3,106 4,174 131412 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.......................................... 661514 191382 633 3307 4,304 13,675 3,253 10,196 11,664 July........................................... 66,129 19,156 636 31548 4,335 13,'629 3,289 10,265 11,271 Aug............................................. 661408 19.435 620 31594 41330 131622 3,305 10,262 11,240 Sept............................................ 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 41281 13,808 3,267 101230 11,876 Nov........................................... 67,470 19.553 600 3,378 41304 141104 3,274 10,246 12,011 Dec.p......................................... 67^962 19,497 598 3,195 41294 14,726 3,283 10,240 12,129 1968—Jan. p................................. 66,111 19,310 583 2,871 4,228 13,709 3,271 10,160 11,979 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

FEBRUARY 1968 u EMPLOYMENT AND EARNINGS A-59 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1967 1968 1967 1968 Jan. Nov. Dec.” Jan.” Jan. Nov. Dec.” Jan.>’ Total.......................................................................... 14,506 14,278 14,331 14,363 14,304 14,406 14,351 14,163 Durable goods................................................................. 8.502 8,294 8,328 8,371 8,417 8,360 8 354 8,290 Ordnance and accessories.................................... 140 ’157 159 162 141 159 ’161 '164 Lumber and wood products................................. 530 515 519 520 501 516 508 492 Furniture and fixtures.......................................... 385 377 384 387 382 382 386 383 Stone, clay, and glass products........................... 512 505 514 511 489 508 503 488 Primary metal industries.............................. 1 ,106 1 ,031 1,032 L,023 1,094 1,012 1 ,018 1,012 Fabricated metal products........................... 1 .068 1 ,045 1 ’060 1 ’059 1 ,060 1,058 I ,’065 1 ,052 Machinery.......................................................... 1,398 1,372 1,333 1'361 1,398 1,356 I ’,334 1 ,361 Electrical equipment and supplies........................ 1 ,’348 1 ^289 I ^295 1 J 302 1,352 1 '311 1,314 1 ,306 Transportation equipment................................... 1 ,373 I , 380 I '405 1'410 1 '387 1 ,412 1 ,'442 1 ’424 Instruments and related products............ 289 ’285 '287 288 ’288 287 '288 '287 Miscellaneous manufacturing industries.............. 353 338 340 348 325 359 335 321 Nondurable goods................................................................. 6.004 5,984 6,003 5,992 5,887 6,046 5 ,997 5,873 Food and kindred products................... 1,196 1,188 1’190 1’196 1,132 1,216 1’176 1 131 Tobacco manufactures...................................... ' 77 ’ 77 74 72 ' 76 ’ 85 81 71 Textile-mill products........................................... 856 848 855 853 845 853 853 842 Apparel and related products............................. 1 ,254 1 ,231 1,237 1,224 1,235 1 ,242 1 233 1,206 Paper and allied products................... 527 '533 536 ’535 '523 '537 '538 530 Printing, publishing, and allied industries......... 668 673 672 674 663 676 677 668 Chemicals and allied products............ 585 595 598 598 579 590 593 591 Petroleum refining and related industries............ 117 121 120 121 113 120 118 117 Rubber and misc. plastic products.................... 411 412 414 413 411 419 419 413 Leather and leather products............................. 313 306 307 306 310 308 309 304 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 1967 1968 1967 1968 1967 1968 Jan. Nov. Dec.” Jan.” Jan. Nov. Dec.” Jan.” Jan. Nov. Dec.” Jan.” Total............................................................... 41.0 40.8 40.8 40 5 113.42 117 50 119.60 118.08 2.78 2.88 2.91 2.93 Durable goods.................................................. 41.7 41.2 41.5 41.5 122.84 126.07 129.89 128.86 2.96 3.06 3 10 3.12 Ordnance and accessories........................ 42.0 41.9 41.7 41.5 136.63 139.35 140.01 138.36 3.23 3.31 3.31 3.31 Lumber and wood products. ................... 40 4 41.2 40,4 39.7 90.80 99.96 97.44 95.50 2.27 2.45 2.43 2.43 Furniture and fixtures............................... 40.7 40.5 40.7 40 5 90.63 97.34 99.84 94.96 2.26 2.38 2.40 2.38 Stone, clay, and glass products................ 41.9 42. 1 41.6 40.9 113.71 122.38 119.94 116.58 2.76 2.90 2.89 2.90 Primary metal industries.......................... 41.8 41 .6 41 .6 41.4 138.69 141.25 142.69 142.76 3.31 3.42 3.43 3,44 Fabricated metal products...................... 42.2 41.4 41.6 41.9 122.89 124.92 128.52 127.82 2.94 3.01 3.06 3.08 Machinery............................................... 43 5 42.4 42.4 42 1 137.03 137 05 139.53 137.67 3.15 3.24 3.26 3.27 Electrical equipment and supplies............ 40.7 40.6 40.4 40 5 109,35 115 87 117.67 116.06 2.70 2.84 2.87 2.88 Transportation equipment........................ 41.6 39.8 42.6 43 1 141.02 141.35 156.17 156.02 3.39 3,49 3.59 3.62 Instruments and related products............. 41.8 41.1 41.2 41 .0 115.65 119.36 120.77 118.73 2.78 2.89 2.91 2.91 Miscellaneous manufacturing industries... 40.0 39.6 39.4 39.3 91.87 94.56 96.47 94.92 2.32 2.37 2.43 2.44 Nondurable goods.................................... 40.0 40.1 39.8 39.3 99.65 105.06 105.60 103.74 2.51 2.62 2.64 2.66 Food and kindred products..................... 41.1 40.8 40.7 40.5 106.08 109.47 110.70 109.34 2.60 2.67 2.70 2.72 Tobacco manufactures.................. 38.7 38.8 36.8 38.1 83.16 83.42 85.41 86.54 2.20 2.15 2.23 2.32 Textile-mill products................................ 40.9 41.5 41.7 41 .1 81.61 89.03 89.88 87.31 2.01 2.13 2.14 2.14 Apparel and related products................... 36.6 36.3 36.2 34.9 70.40 74.93 74.88 72.24 1.95 2.07 2.08 2. 10 Paper and allied products....................... 43.2 42.8 43.0 42.6 119.84 125.99 127.44 124.91 2.80 2.93 2.95 2.96 Printing, publishing, and allied industries. 38.8 38.2 38.0 37.7 123.97 127.64 129.75 125.29 3.22 3.35 3,37 3.35 Chemicals and allied products................. 41.8 41.9 41.7 41 .4 126.16 132,40 132.51 130.70 3.04 3.16 3,17 3. 18 Petroleum refining and related industries.. 42.0 43.1 42.0 43.0 144.90 156.52 150,12 153.91 3.50 3.64 3.60 3.63 Rubber and misc. plastic products........... 41.5 41.8 41.3 41.2 112.19 120.12 119,55 117.14 2.71 2.86 2.86 2.85 Leather and leather products................... 38.3 39.5 38,4 37.6 77.20 82.92 83.28 81.49 2.00 2.11 2.13 2. 15 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 □ FEBRUARY 1968 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h m n ip e e r - ­ F c a o o u n i a e l d l l tr e G a i l c n e a i d c t s y ­ o n F i t p a n i i n o u e s g h d r n r s a ­ ­ ­ A up p a k p n e a d e r p el T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e t a c i i e n n o r a g e d n d a ­ ­ g O s a i o e c t n o r h e v d d s e ­ s r 1929. 59.7 55.6 85.4 1933. 45.1 35.3 60.8 1941. 51.3 44.2 61.4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58,2 1945. 62.7 58.4 67.5 66.1 ...........53.6 86.4 ........... 55.4 ...........57.5 63,6 75.0 67.3 1958. 100.7 101.9 100.2 100.1 100.4 99.0 100.3 99.9 99.8 99.7 100.3 100.1 100,4 100.8 99.8 1959. 101.5 100.3 101.3 101,6 101.4 100.2 102.8 100,7 100.6 103,8 102.8 104.4 102.4 102.4 101.8 1960. 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104,1 104.9 103.8 1961. 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103.0 105.0 107.3 111.3 104.6 107.2 104,6 1962. 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107.2 109.4 114.2 106,5 109.6 105.3 1963. 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102,4 104.8 107.8 111.4 117.0 107.9 Hl.5 107.1 1964. 108.1 106.4 107.2 107.8 109.1 103.5 107,9 102,8 105.7 109.3 113.6 119,4 109.2 114.1 108.8 1965. 109.9 108.8 108.5 108.9 Hl.4 105.6 107.8 103.1 106.8 111.1 115.6 122.3 109,9 115.2 111.4 1966....................... 113.1 114.2 111.1 110.4 115.7 108,3 108.1 105.0 109.6 112.7 119.0 127,7 112,2 H7.1 114.9 1966--Dec............... 114.7 114.8 113.0 111.3 118.6 110.2 107.9 106.7 112.3 113,8 121.0 131.9 113.7 118.4 115.9 1967--Jan............... 114.7 114.7 113.1 111.4 118.7 110.5 108.3 106,7 111.3 113.4 121.4 132.9 113.8 118.5 116.2 Feb............... 114.8 114.2 113.3 111.7 118.9 111. 1 108.3 107.0 111,9 113.8 121.8 133.6 114.1 118.6 116.3 Mar.............. 115.0 114.2 113.3 111.8 118.6 111.1 108,3 107,3 112.6 114.2 122.2 134.6 114.4 118.9 116,4 Apr............... 115.3 113.7 113.6 111.9 119.0 111.0 108.4 107.7 113.0 115.1 122.6 135.1 114.9 119.4 116.6 May............. 115.6 113.9 113.9 112.1 119.7 110.8 108,3 107,9 113.8 115.5 122.8 135.7 115.0 119,6 116,7 June............. 116.0 115.1 114.1 112.2 119.9 HO.5 108,2 108,1 113.9 115,7 123.2 136.3 115.3 119.7 116.9 July.............. 116.5 116.0 114.3 112.4 120.2 111.4 108.3 108,2 113.7 116.2 123.6 136.9 115.5 119.8 117.8 Aug.............. 116.9 116.6 114.7 112.6 120.8 Hl.7 108.5 108.3 113.8 116.4 124.2 137.5 116.1 120.0 118.8 Sept.............. 117.1 115.9 115.0 112.8 121.1 112.3 108.9 108.8 115,1 116.8 124.9 138.5 116.4 120.5 119.7 Oct............... 117.5 115.7 115.3 1 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......... 117.8 115.6 115.5 113.2 121.9 112.7 109.0 109.3 116,6 118.3 126,2 139.7 116.9 122.0 121.0 Dec............... 118.2 116.2 116.0 113.5 122.6 113.1 108.7 109.7 116,8 117.9 126,6 140.4 117.2 122,2 121.4 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities All Proc­ Ma­ Farm essed Period m c t o i o e m d s i ­ ­ p u r c o t d s ­ f f o a e n e o d d d s s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e e u tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s t . , ­ e c a q e h n r u i y d n ip ­ ­ F t e u u t r r c e n . , i ­ N t m m a o l i l e n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l 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 1041 101 0 101.2 102.1 100 4 101 ’2 n.a. 100.8 1960............................ 100.7 96.9 100.0 101.3 101 5 105,2 99.6 100 2 99 9 100 4 101 8 101,3 102.9 100.1 101 4 n.a 101.7 1961............................ 100,3 96.0 101.6 100.8 99.7 106,2 100 7 99 1 96 1 95*9 98 8 100.7 102.9 99 5 101 8 n.a. 102,0 1962............................ 100.6 97,7 102.7 100 8 100.6 107.4 100.2 97 5 93 3 96 5 100 0 100 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 10L3 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 H9.7 10L3 97.8 94,8 1056 102^6 108.3 108.2 99.1 102,6 n.a. 106 8 1966—Dec.............. 105.9 101.8 112.8 105.5 101.8 117.3 102.0 98.2 95.0 102.5 103.0 109.0 110.7 100.4 103.3 n.a. 107.5 1967—Jan................... 106.2 102.6 112.8 105.8 102.0 117.9 102.6 98.4 95.6 102.6 103.1 109.4 111.1 100.4 103.6 n.a. 107.9 Feb.................. 106.0 101.0 111.7 106,0 102.0 118.0 103.4 98.5 95.8 103.6 103.3 109.6 111.2 100.4 103.7 n.a. 108.0 105.7 99.6 110.6 106 0 101 8 117.0 103.7 98 5 95 9 10116 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 I 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 1087 104 1 109.6 111.9 101.2 104.7 n a 110,2 Oct............ 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 Dec........ 106.8 98.9 111.5 107,4 103.8 116.0 102,6 98.4 99'2 107*6 104^8 111.0 113.2 102.1 105'3 n.a. 110^7 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ PRICES A-61 WHOLESALE PRICES: DETAIL (1957-59= 100) 1966 1967 1966 1967 Group Group Dec. Oct. Nov. Dec. Dec. Oct. Nov. Dec. Farm products: Pulp, paper, and allied products: Fresh and dried produce............ 101.3 91.6 102.9 105.0 Pulp, paper, and products, excluding Grains.............................................. 101.5 86.6 81.3 85.4 building paper and board.............. 103 4 104 8 105 I 105 3 Livestock........................................... 97.9 101.8 96.2 97.6 Woodpulp.......................................... 98 0 98 0 98 0 98.0 Live poultry..................................... 77,2 73.8 65.6 68.2 Wastepaper...................................... 90 5 76 6 76 5 78 1 Plant and animal fibers...................... 71 0 72 4 74 9 80 8 Paper.................................................. 108 5 1112 111 2 111.2 Fluid milk......................................... 124.0 123.5 123.6 124.3 Paperboard........................................ 97 2 97 3 97.3 97.3 Bees........................................ 109 0 76.8 80.7 90.9 Converted paper and paperboard.. .. 103.2 104.9 105.5 105.8 Flay and seeds.................................... 124 5 108.5 109.9 112.7 Building paper and board................. 92.7 92.1 92.0 92.1 Other farm products........................... 100.5 97.4 100.9 101,3 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 118 0 1 16 8 117.0 116 9 Tron and steel.................................... 102 9 103 9 104.3 104.7 Meat poultry and fish...................... 104 4 104 7 102.2 103.2 Steelmill products............................ 105 3 106 5 106 8 107 0 Dairy products................................... 122.3 123 0 123 0 124 1 Nonferrous metals............................. 120 5 120 7 122.7 123.7 Processed fruits and vegetables.......... 105 8 109.3 112.0 113.1 Metal containers............................... 110 2 111.7 112.9 112.9 Sugar and confectionery.................... 112.6 113 9 113.9 112.7 Hardware........................................... 1119 115 4 1 15 7 116.1 Beverages and beverage materials.... 105.8 107.3 107.4 107.7 Plumbing equipment......................... 110.5 1 10,2 110.2 110.6 Animal fats and oils........................... 97 5 76 3 70 8 73 5 Heating equipment............................ 93 4 92 9 93 3 93.4 Crude vegetable oils..................... . . 98 1 83 3 82 7 83 9 Fabricated structural metal products. 104.9 105.7 105.9 106.1 Refined vegetable oils........................ 1012 88 J 87 5 87 0 Miscellaneous metal products......... 113.2 1 14.1 1 14,1 114.4 Vegetable oil end products............ 106.3 101 8 101 5 100 2 Miscellaneous processed foods....... 113.7 112.6 113 1 113.7 Manufactured animal feeds................ 132.0 120.6 118.8 119.6 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 120.8 122,3 ’123,8 124.9 Construction machinery and equip... 121 .0 124.3 125.3 126,3 Cotton products................................. 102.7 99 1 101.2 104.2 Metalworking machinery and equip.. 121.8 124.6 125.4 125.8 Wool products.................................... 104 8 102 8 102.2 102,2 General purpose machinery and Man-made fiber textile products..... 86^9 86^9 88.1 88.6 equipment...................................... 112.4 114.4 114.7 115.2 Silk yarns............................................ 163 2 179 5 183 9 189 7 Special industry machinery and Apparel............................................... 105 4 107.5 108 0 108.1 equipment (Jan. 1961— 100).......... 114 3 118 2 118 3 118 3 Textile housefurnishings..................... 105 3 107 4 107 3 109 8 Electrical machinery and equip......... 101 5 101 5 101.6 102 3 Miscellaneous textile products....... 119.7 115 9 114.5 114 0 Miscellaneous machinery.......... 108 J 109 9 110,4 110.8 Hides, skins, leather, and products: Furniture and household durables: Hides and skins................................. 109.2 86 8 90 4 89.7 Leather.............................................. 116.2 104.7 106.5 109.1 Household furniture................... 111 8 113.4 114.3 114 3 Footwear........................................... 120 3 123.6 123.7 124.3 Commercial furniture........................ 108 7 112 0 112 3 112.6 Other leather products........................ 114.2 111 .9 111.9 111 5 Floor coverings................................. 96 2 94 8 94 9 95.2 Household appliances..................... 89 2 90 5 90 8 90 9 Fuels and related products, and power: Home electronic equipment.............. 83 8 82.1 82,2 81 8 Other household durable goods........ 114^0 118.9 118.9 119.5 Coal.................................................... 102 4 103.8 104.8 104.9 Coke.......................................... 112 0 112.0 112 0 112 0 Gas fuels (Jan. 1958= 100)................ 132 0 132 7 132 8 133 1 Nonmetallic mineral products: Electric power (Jan. 1958~ 100)......... UK)' 8 100 8 100 9 100 9 Crude petroleum................................ 98 1 99 0 99 0 99 0 Flat glass........................................ 103 3 107.0 107.0 107.5 Petroleum products, refined............... 100.2 101.0 100.4 99.9 Concrete ingredients......................... 104 3 106.3 106 4 106 5 Concrete products................. 103’9 105.9 105 6 105 8 Chemicals and allied products: Structural clay products excluding refractories. ................................. 109 1 1 10 7 111.1 111.6 Industrial chemicals........................... 96 4 98 3 98 3 98 3 Refractories............................... 104 2 104.9 106 0 106 0 Prepared paint................................... 108 5 109 9 109 9 1122 Asphalt roofing. ................................ 957 95 1 99.4 99.3 Paint materials.................................. 90 6 91 0 91 4 91 3 Gypsum products.............................. 103 5 103 9 103 9 103 9 Drugs and pharmaceuticals................ 947 93.6 93 7 93 8 Glass containers................................ 101 1 101 i 1 101.1 101.1 Fats and oils, inedible........................ 95.1 78 5 77 9 77.2 Other nonmetallic minerals............... 101 3 101 .9 102.0 102.3 Agricultural chemicals and products.. 103.1 101.6 10L7 102.2 Plastic resins and materials................ 90.2 86.1 86.3 86.6 Other chemicals and products....... 107.0 108.8 108.6 108.5 Transportation equipment: Rubber and products: Motor vehicles and equipment......... 101.7 103.7 104.0 104,0 Railroad equipment (Jan. 1961 = 100), 102,7 104.5 104,8 104.8 Crude rubber...................................... 87.6 84.2 83.8 83.7 Tires and tubes................................... 93 9 98.7 98.7 98 7 Miscellaneous rubber products........... 99.3 104.8 105.6 105 9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition.................................... 104.8 106. 3 106.3 106,4 Lumber............................................... 104 5 111.2 110.9 111 8 Tobacco products.............................. 110.3 114.8 114.8 114.8 Millwork.......................................... 110.3 113.4 113 5 113.7 Notions.............................................. 100 8 100.8 102.1 102.2 Plywood.............................................. 87.4 90.2 87. 8 90.2 Photographic equipment and supplies 109.9 113.6 113.6 113.6 Other wood products (Dec. 1966= 100) 100.0 101.5 101.5 101.5 Other miscellaneous products........... 106.1 108.7 108.9 109.2 Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classi­ incorporate (I) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-62 NATIONAL PRODUCT AND INCOME □ FEBRUARY 1968 GROSS NATIONAL PRODUCT (In billions of dollars) 1966 1967 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967?’ IV I II III IV” Gross national product................................... 103.1 55.6 124.5 284.8 590.5 632.4 683.9 743.3 785.1 762.1 766.3 775.1 791.2 807.6 Final purchases.............................................. 101.4 57.2 120.1 278.0 584.6 626.6 674.5 729.9 780.0 743.6 759.2 774.6 787.4 798.7 Personal consumption expenditures................ 11.1 45.8 80.6 191.0 375.0 401.2 433.1 465.9 491.6 473.8 480.2 489.7 495.3 501.4 Durable goods........................................... 9.2 3.5 9.6 30.5 53.9 59.2 66.0 70.3 72.1 70.6 69.4 72.5 72.7 73.7 Nondurable goods...................................... 37.7 22.3 42.9 98.1 168,6 178.7 191.2 207.5 217.5 210.3 214.2 217.2 218.5 220.2 Services..................................................... 30.3 20.1 28.1 62.4 152.4 163.3 175.9 188.1 202.1 192.9 196.6 200.0 204.1 207 5 Gross private domestic investment.................. 16.2 1.4 17.9 54.1 87.1 94.0 107.4 118.0 112.1 122.2 110.4 105.1 112.2 120.7 Fixed investment......................................... 14.5 3.0 13.4 47.3 81.3 88.2 98.0 104.6 107,0 103.7 103.3 104.6 108.4 111.7 Nonresidential.......................... 10.6 2.4 9.5 27.9 54.3 61.1 71.1 80.2 82.5 82.8 81.9 81.5 82.8 83.8 Structures............................................ 5.0 .9 2.9 9.2 19.5 21.2 25.1 21.9 26.8 21.1 27.7 26.3 26.6 26.5 Producers’ durable equipment........ 5.6 1.5 6.6 18.7 34.8 39.9 46.0 52.3 55.7 55.1 54.2 55.2 56.2 57.3 Residential structures............................. 4.0 .6 3.9 19.4 27.0 27.1 27.0 24.4 24.5 20.9 21.4 23.1 25.6 27.9 Nonfarm............................................. 3.8 .5 3.7 18.6 26.4 26.6 26.4 23.8 23.9 20.4 20.9 22.5 25,0 27.4 Change in business inventories.......... 1.7 -1.6 4.5 6.8 5.9 5.8 9.4 [3.4 5.1 18.5 7.1 0.5 3.8 9.0 Nonfarm................................................. 1.8 -1.4 4.0 6.0 5.1 6.4 8.4 13.7 4.7 19.0 7.3 0.6 3.4 7.5 Net exports of goods and services.................. 1.1 .4 1.3 1.8 5.9 8.5 6.9 5.1 5.0 4.3 5.3 5.3 5.4 4.0 Exports........................................... 7.0 2.4 5.9 13.8 32.3 37,1 39.1 43.0 45.4 44,0 45.3 45.1 45.6 45.6 Imports....................................................... 5.9 2.0 4.6 12,0 26.4 28.6 32.2 37.9 40.4 39.7 39.9 39.8 40.2 41.6 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 122.5 128.7 136.4 154.3 176.3 161.7 170.4 175.0 178.2 181.5 Federal. ....................... 1.3 2.0 16.9 18.4 64.2 65.2 66.8 77.0 89.9 81.5 87.1 89.5 90.9 92.0 National defense............................... 13.8 14.1 50.8 50.0 50,1 60.5 72.6 65.6 70,2 72.5 73.3 74.3 Other.............................................. 3.1 4.3 13.5 15.2 16.7 16,5 17.3 15.9 16.8 17.0 17.6 17.7 State and local................................... 7.2 6,0 7.9 19.5 58.2 63.5 69.6 77.2 86.4 80.2 83.3 85.4 87.4 89.5 Gross national product in constant (1958) dollars..................................................... 203.6 141.5 263.7 3 55.3 551.0 581.1 616.7 652.6 669.2 661.1 660.7 664.7 672.0 679.4 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 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967P IV I II HI IV* National income............................................. 86.8 40.3 104.2 241.1 481.9 518.1 562.4 616.7 649-6 634.1 636.4 641.6 653.4 Compensation of employees.......................... 51.1 29.5 64.8 154.6 341.0 365.7 393.9 435.7 469.6 450.2 459.1 463.4 472.6 483.2 Wages and salaries........................... 50.4 29.0 62,1 146.8 311.1 333.7 359.1 394.6 423.7 407.4 414.7 418.3 426.2 435.6 Private.................................................... 45.5 23 9 51.9 124.4 251.6 269.4 289.8 316.7 331 4 326.1 331.4 333.2 339.4 345 8 Military,............................................... .3 .3 1.9 5.0 10.8 11.7 12.1 14.7 16 4 15.8 16.1 16.2 16. 3 17.3 Government civilian............................... 4.6 4.9 8.3 17.4 48.6 52.6 57 J 63^2 69.8 65.6 67.3 68.9 70.6 72.5 Supplements to wages and salaries......... .7 .5 2.7 7.8 29.9 32,0 34.9 41.1 45.9 42.7 44.4 45.2 46.4 47.6 Employer contributions for social insura nee................................................ .1 .1 2.0 4.0 15.0 15,4 16.2 20.3 22.6 21.1 22.2 22.3 22.8 23,3 Other labor income................................ .6 .4 .7 3.8 14.9 16.6 18,6 20,8 23.2 21,7 22.2 22.9 23.6 24.3 Proprietors’ income........................................ 15.1 5.9 17.5 37.5 51.0 52.3 56.7 59.3 58.4 58.6 57.8 57.8 58.8 59.3 Business and professional.......................... 9.0 3.3 H.l 24.0 37.9 40,2 41.9 43.2 43.6 43.4 43.2 43.4 43.8 44.1 Farm.......................................................... 6.2 2.6 6.4 13.5 13.1 12.1 14.8 16.1 14 8 15.1 14.6 14.3 15.0 15 2 Rental income of persons............................... 5.4 2.0 3.5 9.4 17.1 18.0 19.0 19.4 20.1 19.6 19.8 20.0 20.2 20.4 Corporate profits and inventory valuation adjustment.................................................. 10.5 -1.2 15.2 37.7 58.9 66.3 74.9 82.2 79.1 84.6 78.1 78.3 79.2 Profits before tax..................................... 10,0 1.0 17.7 42.6 59.4 66,8 76,6 83.8 80.1 83,9 79,0 78.9 80,0 Profits tax liability.............................. 1.4 .5 1.6 17.8 26,3 28,3 31.4 34.5 33 0 34.6 32.5 32.5 32.9 Profits after tax.................................... 8.6 .4 10.1 24.9 33,1 38.4 45.2 49.3 47.2 49.3 46,5 46.5 47.1 Dividends............................................ 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.5 22 8 21.2 22.2 23.1 23.4 22.4 Undistributed profits.......................... 2.8 -1.6 5.7 16.0 16,6 20.6 25.4 27,8 24^4 28 2 24.2 23.4 23.6 Inventory valuation adjustment................. .5 -2.1 -2.5 -5.0 -.5 -.5 -1.7 -1.6 -1.0 .7 -.8 -.7 -.8 -1.8 Net interest..................................................... 4.7 4.1 3.2 2.0 13.8 15.8 17.9 20.2 22.4 21.1 21.6 22.1 22.7 23.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 1963 1964 1965 1966 1967" IV I II III IV" Gross national product................................... 103.1 55.6 124.5 284.8 590.5 632.4 683.9 743.3 785.1 762.1 766.3 775.1 791.2 807.6 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 52.6 56.1 59.9 63.5 67.0 64.7 65.5 66.4 67.6 68.6 Indirect business tax and nontax liability....................................... 7.0 7.1 11.3 23.3 54.7 58.4 62.2 65.1 69.7 67.0 67.9 69.1 70.2 71.4 Business transfer payments................. .6 .7 .5 .8 2.3 2.5 2.6 2.7 2.8 2.8 2.8 2.8 2.8 2.8 Statistical discrepancy......................... .7 .6 .4 1.5 -.3 -1.3 -2.0 -2.6 -2.2 -3.8 -4.0 -2.8 -1.2 ......... Plus: Subsidies less current surplus of government enterprises......................... -.1 . 1 .2 .8 1.3 1.2 2.2 1 .8 2.6 2.3 2.0 1.6 1 5 Equals: National income................................ 86.8 40.3 104.2 241.1 481.9 518.1 562.4 616.7 649.6 634.1 636.4 641.6 653.4 Less: Corporate profits and inventory valuation adjustment............................. 10.5 -1.2 15.2 37.7 58.9 66.3 74.9 82.2 79.1 84.6 78.1 78.3 79.2 Contributions for social insurance.... .2 .3 2.8 6.9 26.9 27.9 29.7 38.2 43.0 39.8 42.2 42.5 43.3 44. 1 Excess of wage accruals over disburse­ ments........................................... Plus: Government transfer payments........... .9 1.5 2.6 14.3 33.0 34.2 37.2 41.2 49.1 44.7 48.1 48.6 49.6 50.1 Net interest paid by government and consumer......................................... 2.5 1.6 2.2 7.2 17.6 19.1 20.4 22.3 24.1 23.2 23.7 23.9 24.2 24.7 Dividends............................................ 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.5 22.8 21.2 22.2 23.1 23.4 22.4 Business transfer payments................. .6 .7 .5 .8 2.3 2.5 2.6 2.7 2.8 2.8 2.8 2.8 2.8 2.8 Equals: Personal income............................... 85.9 47.0 96.0 227.6 465.5 497.5 537.8 584.0 626.3 601.6 612.9 619.1 631.0 642.1 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 60.9 59.4 65.6 75.2 81.7 79.6 80.2 79.1 82.8 84.6 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 404.6 438.1 472.2 508.8 544.6 522.0 532.7 540.0 548.2 557.5 Less: Personal outlays.................................. 79.1 46.5 81.7 193.9 384.7 411.9 445.0 479.0 505.8 487.4 493.9 504.0 509.6 515.9 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 375.0 401.2 433.1 465.9 491.6 473.8 480.2 489.7 495.3 501.4 Consumer interest payments........... 1 .5 .5 .9 2.4 9.1 10,1 11 .3 12.4 13.4 12.9 13.1 13.3 13,5 13.8 Personal transfer payments to foreigners.......................................... .3 .2 .2 .5 .6 .6 .7 .6 .8 .6 .7 1.0 .8 .7 Equals: Personal saving................................. 4.2 -.9 11.0 13.1 19.9 26.2 27.2 29.8 38.7 34.6 38.8 36.0 38.5 41.6 Disposable persona] income in constant (1958) dollars........................................................ 150.6 112.2 190.3 249.6 381.3 407.9 434.4 456.3 476.0 463.2 470.6 474.9 477.5 481.8 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 1966 1 967" Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec." Total personal income........................ 584.0 626.3 605.0 610.4 612.6 615.6 616.5 618.2 622.6 627.0 631.6 634.4 635.9 642.4 648. 1 Wage and salary disbursements......... 394.6 423.7 410.0 413.8 414.2 416.2 416.7 417.2 420.9 423.4 426.7 428.5 429.4 435.3 442.0 Commodity-producing industries... 159.3 167.1 164.9 166.2 165,2 165.6 165.0 164.3 165.2 166.1 168,0 168,2 167.9 171 .2 172.5 Manufacturing only. . . ............... 128. J 134.3 132.8 133.7 132.7 132.9 132.5 132.2 133.0 133.2 135.3 135.4 134.9 137.5 138.4 Distributive industries.................... 93.9 100.8 97.2 98.4 98.6 99.1 99.1 99.3 100.4 101.3 101.8 102. 1 102.6 103.7 103.4 Service industries........................... 63,5 69.5 65.9 66.4 66.9 67,6 68.2 68.6 69.5 69.6 70.1 70.8 71 . 1 71 .9 72,9 Government................................... 77.9 86.3 82.0 82.7 83.4 84.0 84.5 85.0 85.7 86.4 86.9 87.4 87,8 88.4 93.1 Other labor income........................... 20.8 23.2 21.9 22.1 22.2 22.4 22.6 22.8 23.1 23.3 23.6 23.8 24.0 24.3 24.6 Proprietors* income........................... 59.3 58.4 58.8 58.3 57.8 57.4 57.7 57.8 57.9 58.4 58.8 59.2 59.1 59.3 59.5 Business and professional.............. 43.2 43.6 43.5 43.3 43.2 43.1 43.3 43.4 43.6 43.7 43,8 43.9 44.0 44.1 44,2 Farm.............................................. 16.1 14.8 15.3 15.0 14.6 14.3 14.4 14.4 14.3 14.7 15,0 15.3 15.1 15.2 15.3 Rental income.................................... 19.4 20.1 19.7 19.7 19.8 19.9 20.0 20.0 20.1 20.2 20.2 20.3 20.3 20.4 20.4 Dividends.......................................... 21.5 22.8 20.2 21.8 22.3 22.6 22.8 23.1 23.3 23.5 23.5 23.4 23.2 23.1 21.0 Personal interest income................ 42.4 46.5 44.8 45.0 45.2 45.5 45.8 46.0 46.1 46.4 46.9 47.3 47.6 48.0 48.4 Transfer payments............................. 43.9 51.9 48.5 49.7 51.1 51.7 51.0 51.5 51.6 52.2 52.4 52.5 52.8 52.8 53.1 Less: Personal contributions for social insurance.......................... 17.9 20.4 18.8 20.0 20.0 20.1 20.1 20.1 20.3 20.4 20.6 20.6 20.6 20.8 21.0 Nonagricultural income...................... 563.1 606.4 584.8 590.2 593.0 596.2 596.9 598.8 603.2 607.2 611.4 614.0 615.7 622.0 627.6 Agriculture income............................. 20.9 19.9 20.3 20.2 19.6 19.5 19.5 19.5 19.4 19.8 20.2 20.4 20.2 20.4 20.5 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR THIRD QUARTER, 1967—SEASONALLY ADJUSTED ANNUAL RATES (In billions of dollars) Private domestic nonfinancial sectors Financ iaisectors Rest of House­ Busi­ an S d t a lo te c al Total G U o . v S t . . Total Monetary Coml. Nonbank w t o h r e ld se A ct l o l rs Discrep­ s N av a i t n l g . Sector holds ness govts. auth. banks finance ancy and invest­ ment Transaction category u s u s u s V s u s u s u s u s U S U S u s U 1 Gross saving.......................... 127.1 ......... 76.4 ........ -4.3 ........ 199.2 ..........-14.3 ........ 3.5 * ........ 2.0 ........ 1.5 ........ -2.0 . .. 186.4 188,4.... 1 2 Capital consumption......... 68.8........ 57.3 ........ 126.1 ........ 1.1 ..................5 ..................6 ........ 127.2 127.2.... 2 3 Net saving (1 —2)........... 58.3 ........ 19 2 ........ -4 3 ........ 73.1 ..........-14.3 ........ 2.4 * ........ 1.5 ..................9 ........ -2.0 ........ 59 2 61 2.... 3 4 Gross investment (5^-10)....... 127.3 71.5......... 193.4 . -15.1........ 4.3........ * 2.3........ 2.0........ -2.5....1..8..0..0 6.4. 187.5 4 5 Private cap. expend., net....... 93.8 90.4 184.2 ........ .8____ .2........ .6........ 185.0 1.4 . .. 185.0 . 5 6 Consumer durables............ 72.7 72.7........ 72.7........ 72.7.... 6 7 Residential constr.. ....... 16.7 8.9........ 25.6........ 25.6........ 25 6... 7 4.3 77.7 ... 82.0 - - - .8........ .2........ .6........ 82 8 82 8-... 8 9 Inventory change............... 3.8 ... 3 8 3 8... 3 8 9 10 Net financial invest. (11 — 12). 33.6 —18.9 .. 9.2 -15.1........ 3.5......... ♦ 2.0........ 1.4........ -2.5......... 5.0... 2.5.... 10 11 Financial uses, net................. 58.2 25.2 .. 8.8 ... 92.1 20.4........ 115.6 ......... 57.2........ 53.8........ 8.1........ 236.1 ........ 10.6 11 24.6 ........ 44.1 ........ 14.3 ........ 82.9 ........ 35.5 ........ 112.1 ........ 4.5 ........ 52.4......... 10.6 ........ 241.1 8.1... 12 13 Gold & off. U.S. fgn. exch.. 1.1........ .4........ .4........ .4 1.9 1.9 1.9 .................... 13 14 Treasury currency............... ........ 7 .5........ .5........ .5 .7 .1.......................... 14 15 Dem. dep. and currency.. . ........ 25.1 ........ —2.7 ........ 27.8 19 3 25.1 .................... 15 16 Private domestic............. 3.4 3 7........ - 3........ 6.9........ — .2 10.7 ........ 16 ........ 9.2 -.2........ 6.7 10.7 4.1....... .................... 16 1 1 7 8 U Fo .S re . i G gn o . v ... t . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . 11 7...... ....... 1 1 3 .3 0 ........ — — 4 .2 1 . . . . . . .. . . . . . . 1 1 7. 1 5 1 o........ 11 7 1 1 3 .3 0 1.6.... . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 7 8 19 Time and svgs. accounts... 36.5 40 9 5 42.4 .5........ . 42 4 .. ... 19 20 At coml. banks............... 18.7 3.7 ... .7 .. 23.1 ... * 24 0 ........ 24.0 1 0........ ........ 24 0 .................... 20 21 At svgs. instit.................. 17.9 17.9........ .5 18.3 .5 18.3 ........ 18.3 .................... 21 22 Life insur. reserves............. 4.6 4.6........ 1 ........ 4.5 ........ 4.5 ........ 4 6 .................... 22 14.7 ........ 4 2 14 7 4 2 1 1 .. .. 9 4 ........ 9 4 14 7 .................... 23 24 Consol, bank items1......... 7 2 7.2 — .2 7 4 7.4 —.2 7 2 7 2 .................... 24 3.2 20.3 1 37 9 8.7 10 0 12.0 68 1 4.7 35.2 96.8 7.4 3.8........ 42.6 * 50.4 7.4 .9 3.7 114 4 114.4 .................... 25 26 U.S. Govt securities.... .9 —1.6 2.8....... 2.1........ . 35.2 34 4 ........ 3.8........ 21.5........ 9 2........ -1.4........ ........ 35.2 .................... 26 27 State and local oblig..... 6.3 8 — .4 9 8 6.7 9 8 3.2........ 3.2........ ........ 9 8 .................... 27 28 Corp, and foreign bonds. 2.7 ........ 18 6 5 2... 7.9 18 6 12.5 1.1 .7 .1 11.8 1.0 .9 1.7 ........ 21.4 .................... 28 29 Corp, stocks................... -6.4 3 i —6 4 3 1 11.6 3 4 ........ —.2 11 6 3.6 1.2 - 1 ........ 6 4 ................... 29 30 1- to 4-family mortgages. -.3 11.5 ........ 1.1 1 0 . 8 12 6 2 3... 10 8 1.3 1 9........ 8 8 1.3 ........ 13 9 ................... 30 31 Other mortgages............. 1.0 8 2 9 2 7........ 8 4........ 2.5........ 6 0........ ........ 9.2 .................... 31 32 Consumer credit.............. 5.1 1 5 1 5 5.1 3 5........ 3.2........ 4........ ........ 5.1 .................... 32 33 Bank loans n.e.c.............. 2.0 3 2 5 2 8 1 2.1 — .1........ 8.1........ ........ 2.1 ..................8 ........ 8.1 .................... 33 .8 -.6 3.7 1 — 6 4 7 1 7...... 4 3 —.5 .1.......1..5........ 2.7 —.5 .1 1.3 5.5 5 4 — .1.......................... 34 35 Open market paper. .. — 6 2 — 6 — 2 3 -6 .1........ 1 5........ -1 3 .6 .1 -.5 ........ -.1 .................... 35 36 Federal loans.......... * 8 1 1 0 I 6...... -1 1 ........ —1.1 ........ 1.8 ........ 16 .................... 36 37 Security credit.................... .6 3.8 6 3 8 12 1 9 0 8 8........ 3.3 9 0 1 * ........ 12.8 ........... 37 38 To brkrs. and dealers.... .6 6 ... 8 3 9 0 8.3........ * 9 0 .1........ ........ 9.0 .................... 38 39 To others..................3....8.. 3 8 3 9........ 5.......3..3........ * ........ 3.9 .................... 39 40 Taxes payable..................... 8.1 .1 — 2 - 2 1 1 5 . ... -.4 ...................1 1.3 -.3 -1.6 ................... 40 41 Trade credit........................ .1 6.4 4.4 1 6 4 4 6 12 3 3........ .3........ 7.9 4.9 -3.0......................... 41 42 Equity in noncorp, business. -6.4 6 4 —64 —64 ........ —6.4 .................... 42 43 Mise, financial trans........... 1.5 .4 11.2 8.1 12 7 8 5 2—19 —2 1 7.6 ........ — 2 — 17 4 1 — 4 3.8 4 7 5.0 15.5 19.3 3.8........................... 43 44 Sector discrepancies (1 —4)... -.2 5 0 1 1 . 5 8... 8........ — 7........ — 2........ .5.......6..4........ 6.4....... 1.0 .. 44 1 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. loans to banks. F.R. float, and stock at F.R. Banks. A-64 FLOW OF FUNDS □ FEBRUARY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.1 2. SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1965 1966 1967 Transaction category, or sector 1962 1963 1964 1965 1966 III IV I II III IV I II 111 I. Saving and investment 1 Gross national saving....................... 134.5 144.5 160.3 179.5 193.1 179.4 184.8 190.3 191.3 192.2 198.4 186.2 182.7 188.4 1 2 Households.................................. 82.0 85.8 98.3 107.3 115.3 111.2 112.8 113.4 111.7 114.8 121.3 123.9 124.5 127.1 2 3 Farm and noncorp, business....... 13. 1 13.5 14.5 15.3 16.0 15.3 15.5 15.7 15.9 16. 1 16.3 16.5 16.6 16.9 3 4 Corporate nonfin. business......... 41.8 43.9 50.5 55.7 60.3 56. 1 57.8 58.8 59.2 59.8 63.5 58.6 58.7 59.5 4 5 U.S. Government........................ -4.8 -.6 -4.3 . 1 -.9 -4.7 -1.5 1 . I 1.6 -1.8 -4.6 -13.2 -16.7 -14.3 5 6 State and local govt..................... -1.4 -1.5 -1.4 -2.2 -.8 -1.9 -2.5 -1.2 -.8 -.5 -.9 -3.0 -4.3 -4.3 6 7 Financial sectors.......................... 3.8 3.5 2.7 3.3 3.3 3.4 2.8 2.6 3.8 3.8 2.8 3.4 4.0 3.5 7 8 Gross national investment................ 133.9 143.8 158.0 177.1 190.1 177.5 183.7 188.4 188.3 190.0 193.7 181.2 177.2 187.5 8 9 Consumer durable goods............ 49.5 53.9 59.2 66.0 70.3 66. 1 68.6 71.6 68.2 70.9 70.6 69.4 72.5 72.7 9 10 Business inventories.................... 6.0 5.9 5.8 9.4 13.4 9. 1 9.6 9.8 14.0 11.4 18.4 7.1 .5 3.8 10 11 Gross pvt. fixed investment......... 77.0 81.3 88.2 98.0 104.6 98.8 102.4 105.3 104.5 104.9 103.7 103,3 104.6 108.4 1 1 12 Households.............................. 21.9 22.4 23.0 23.2 22.8 23.2 23.6 23.9 23.6 22.8 20.7 18.7 19.0 21.0 12 13 Nonfinan. business.................. 54.4 57.9 64.3 74.0 80.8 74.8 78.0 80.4 79.8 81.1 82.0 83.7 84.8 86.6 13 14 Financial sectors..................... .6 1.0 .9 .9 L0 .8 .8 1.0 1.0 1.0 1.0 .8 .8 .8 14 15 Net financial investment.............. 1.3 2.8 4.7 3.7 1.8 3.4 3. 1 1.8 1.6 2.8 1.0 1.5 -.4 2.5 15 16 Discrepancy (1-8)............................ .7 .6 2.3 2.4 3.0 1.9 1.1 1.9 3.0 2.1 4.7 5.0 5.5 1.0 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 54.2 58.5 67.0 72.3 69.9 64.0 75.8 84.1 83.2 62.6 49.9 74.4 44.2 107.0 17 18 Loans and short-term securities.... 15.0 19.0 26.4 33.1 27.4 23.8 35.0 26.4 22.7 30.7 29.8 33.7 -16.3 48.2 18 19 Long-term securities and mtgs........ 39.2 39.5 40.6 39.2 42,5 40.2 40.8 57.6 60.5 31.9 20.0 40.7 60.4 58.8 19 By sector 20 U.S. Government........................... 7.9 5.0 7.1 3.6 6.3 -3.8 8.5 10.8 6.7 4.9 2.9 8.3 -21.1 35.2 20 21 Short-term mkt. securities........... .7 1.4 4.0 3.5 2.2 -2.9 5.4 -1.5 -7.3 7.6 10. 1 10.2 -35.7 31.2 21 22 Other securities........................... 7.3 3.6 3.0 .2 4.1 -.9 3.2 12.3 14.1 -2.7 -7.2 - 1.8 14.5 4.0 22 23 Foreign borrowers........................... 2.1 3.3 4.4 2.6 1.5 .7 2.7 2.7 2.5 -.4 1.2 5.5 3.7 3.7 23 24 Loans.......................................... 1.1 2.2 3.7 1.9 1.0 -. 1 1.9 1.3 2.3 -.4 1.0 4.5 2.7 2.1 24 25 Securities...................................... 1.0 1.1 .7 .8 .5 .8 .8 1.4 .2 .2 1.0 1.0 1.6 25 26 Pvt. domestic nonfin. sectors.......... 44.2 50.2 55.5 66.0 62.0 67.1 64.6 70.5 73.9 58.0 45.7 60.6 61.6 68.1 26 27 Loans.......................................... 13.3 15.5 18.7 27.7 24.1 26.8 27.8 26.6 27.8 23.4 18.7 19. 1 16.7 14.9 27 28 Consumer credit................ 5.5 7.3 8.0 9.4 6.9 9.3 8.8 9.3 7.0 6.8 4.6 4.3 3.4 5.1 28 29 Bank loans n.e.c........................ 4.8 5.4 6.5 13.6 9.8 12.4 14.0 9.5 15.5 9.0 5.2 6.6 12.1 5.2 29 30 Other loans.............................. 3.0 2.7 4.1 4.7 7.4 5.1 5.0 7.8 5.3 7.7 9.0 8.2 1.3 4.7 30 31 Securities and mortgages............. 31.0 34.7 36.9 38.3 37.9 40.2 36.8 43.9 46.1 34.6 27.0 41.5 44.9 53.2 31 32 State and local obligations....... 5.0 6.7 5.9 7.3 6.0 6.7 7.8 6.3 6.9 4.6 6.1 10.3 11.5 9.8 32 33 Corporate securities............. 5.1 3.6 5.4 5.4 11.4 7.1 2.8 12.2 15.5 11.3 6.6 14.3 15.8 21.7 33 34 1~ to 4-family mortgages........... 13.0 15.2 15.7 16.2 ll.O 16.7 16.9 14.2 12.5 9.1 8.1 8.7 8.0 12.6 34 35 Other mortgages....................... 7.9 9.3 10.0 9.4 9.6 9.7 9.2 11.3 11.2 9.6 6.2 8.2 9.7 9.2 35 36 Net sources of credit (= line 17).. . . 54.2 58.5 67.0 72.3 69.9 64.0 75.8 84. 1 83.2 62.6 49.9 74.4 44.2 107.0 36 37 Chg. in U.S. Govt, cash balance.. 1.3 -.4 .2 -1.0 -.4 -8.9 2. 1 -3.3 6.7 -6.2 1.2 -.6 -14.8 13.3 37 38 U.S. Govt, lending...................... 3.3 2.7 3.8 4.7 7.9 3.2 4.6 11.1 10.0 7.8 2.8 6. 1 -.8 4.7 38 39 Foreign funds.............................. 2.2 1.9 2. 5 .8 - .9 -1.7 3.6 -1.5 4.4 -5.3 -1.2 3.7 8.2 3.0 39 40 Pvt. insur. & pension reserves.... 9.0 10.1 11.1 11.6 12.8 11.9 11.9 12.8 10.8 13.1 14.5 12.2 12.0 13.8 40 41 Sources n.e.c................................ 4.0 4.7 5.7 7. 1 7.6 6.0 4.9 11.6 6.0 13.9 -1.0 -1.1 3.1 11.5 41 42 Pvt. domestic nonfin. sectors....... 34.4 39.5 43.8 49. 1 42.8 53.5 48.8 53.3 45.3 39.2 33.6 54.0 36.5 60.6 42 43 Liquid assets............................ 31.4 37.4 33.0 43.4 23.9 52.5 43.1 33.3 21.8 18.5 22.1 55.3 38.8 54.6 43 44 Deposits............................... 30.1 34.4 35.3 40.4 22.7 49.4 42.3 29.1 24.6 15.8 21.2 60.7 51.9 51.8 44 45 Demand dep. and currency 2. 1 5.9 6.5 7.7 2.9 14. 1 11.9 4.0 1.6 -.5 6.5 10.0 10.3 10.9 45 46 Time and svgs. accounts... 28.1 28.5 28.8 32.7 19.8 35.3 30.4 25.1 23.0 16.4 14.6 50.7 41.6 40.9 46 47 A t commercial banks.... J5.0 13.4 13.0 19.5 12.5 21.7 17.9 15.4 18.1 11.1 5.4 33.8 21.2 23.1 47 48 At savings instit............. 13.0 15.1 15.8 13.2 7.3 13.6 12.5 9.8 4.9 5.3 9.3 16.9 20.4 17.9 48 49 Short-term U.S. Govt. sec... 1.3 3.0 -2.3 3.0 1.2 3.2 .8 4.2 -2.9 2.7 .9 -5.4 -13.1 2.8 49 50 Other U.S. Govt, securities.... .4 1.7 3.1 .2 6.7 -5.3 2.5 4.8 14.5 3.3 4.3 — H. 1 -.4 -.7 50 51 Pvt. credit mkt. instruments. . . 2.5 2.3 7.5 5.8 12.1 5.9 4.6 15.5 10.6 15.6 6.6 9.4 .6 9.9 51 52 Less security debt.................... -.2 2.0 -.2 .3 -.2 -.3 1.3 .3 1.5 -1.9 -.6 -.5 2.5 3.2 52 III. Direct lending in credit markets 53 Total funds raised........................... 54.2 58.5 67.0 72.3 69.9 64.0 75.8 84.1 83.2 62.6 49.9 74.4 44.2 107.0 53 54 Less change in U.S. Govt, cash.... 1.3 -.3 .2 -1.0 -.4 -8.8 2. 1 -3.3 6.7 -6.1 1.2 -.7 -14.9 13.3 54 55 Total net of U.S. Govt. cash....... 52.9 58.8 66.8 73.3 70.3 72.8 73.7 87.3 76.4 68.7 48.7 75.1 59.1 93.7 55 56 Funds supplied directly to cr. mkts.. 52.9 58.8 66.8 73.3 70.3 72.8 73.7 87.3 76.4 68.7 48.7 75.1 59.1 93.7 56 57 Federal Reserve System.............. 1.9 2.6 3.2 3.8 3.3 5.1 3.5 2.5 -.1 6.6 4.2 3.0 -.2 8.0 57 58 Total........................................ 2.0 2.9 3.4 3.8 3.5 5.1 3.0 2.5 2.1 5.0 4.3 5.3 3.1 3.8 58 59 Less change in U.S. Govt. cash. . 1 .3 .2 * .2 * -.5 . 1 2.1 -1.6 . 1 2.4 3.2 -4.2 59 60 Commercial banks, net................ 18.2 19.7 21.8 29.2 18.0 33.7 32.2 23.0 28.0 14.1 6.8 40.9 37.8 34.0 60 61 Total........................................ 19.5 19.4 22.4 29.0 17.5 24.9 35.2 19.9 32.9 9.6 7.9 38.7 19.8 51.5 61 62 Less chg. in U.S. Govt. cash... 1.2 -.6 * -1.0 -.5 -8.9 2.6 -3.3 4.6 -4.5 1.1 -3.0 -18.1 17.5 62 63 Security issues...................... . 1 .3 .6 .8 . 1 . 1 .4 . 1 .3 * * .8 . 1 ♦ 63 64 Nonbank finance, net.................. 23.8 28.0 29. 1 27.0 22.4 29.5 24.3 27.9 16.6 20.9 24.1 27.7 34.3 37.3 64 65 Total........................................ 28.5 34.4 33.5 32.9 25.7 29.8 33.7 35.7 18.7 21.5 27.0 29.6 18.6 50.1 65 66 Less credit raised...................... 4.7 6.4 4.4 5.9 3.3 .4 9.4 7.7 2.0 .7 2.9 1.9 -15.7 12.8 66 67 U.S. Government.............. 3.3 2.7 3.8 4.7 7.9 3.2 4.6 11. 1 10.0 7.8 2.8 6. 1 -.8 4.7 67 68 Foreign........................................ 1.5 .9 .6 -.1 -1.4 -2.6 2.7 -1.3 1.2 -4.1 -1.6 4. 1 3.4 1.0 68 69 Pvt. domestic nonfin.................... 4.3 5.1 8.5 8.7 20.2 4.1 6.5 24.2 20.7 23.4 12.5 -6.6 -15.5 8.8 69 70 Households............................... -1.7 .4 3.2 2.2 10.6 -2.2 -.6 13.7 15.4 11.1 2.0 -9.9 -10.5 3.2 70 71 Business................................... 2.3 3.1 1.5 1.0 3.2 3.8 2. 1 5.7 1.4 3.4 2.5 1.0 -5.5 . 1 71 72 State and local govts................ 3.6 3.5 3.7 5.8 6.2 2.2 6.3 5.0 5.4 7.0 7.3 1.7 3.1 8.7 72 73 Less net security credit............. -.2 2.0 -.2 .3 -.2 -.3 1.3 .3 1.5 -1.9 -.6 -.5 2.5 3.2 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. See also notes on p. A-65,3. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.2 FLOW OF FUNDS □ FEBRUARY 1968 3. PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1965 1966 1967 Transaction category, 1962 1963 1964 1965 1966 or sector III IV I II in IV I 11 in I, Demand deposits and currency 1 Net incr. in banking system liability. . 4.5 5.8 7.4 7.6 2.6 7.2 15.2 -.3 10.1 -8.0 8.8 8.8 -.6 25.1 I 2 U.S. Govt, deposits....................... 1.3 -.3 .2 -1.0 -.4 -8.8 2. 1 -3.3 6.7 -6. 1 1.2 -.7 -14.9 13.3 2 3 Other.............................................. 3.2 6.1 7.3 8.6 3.0 16.1 13.1 3.0 3.3 -1.9 7.6 9.5 14.3 11.7 3 4 Domestic sectors....................... 3.1 6.0 6.8 8.3 3.3 15.4 12.8 2.9 2. 1 -. 1 8.2 11.1 11.9 10.7 4 5 Households............................. 2.7 4.3 6.4 7. 1 (.9 9.7 11.7 -2.2 1.4 .5 8.1 11.0 7. 1 3.4 5 6 Nonfinancial business............ -.9 -.8 -2.1 -1.7 .7 -2.6 .3 2.3 .2 1.5 -1.3 -3.8 -1.7 3.7 6 7 State and local govts......... .9 2.4 1.2 -.2 .8 2.3 -2. 1 2.7 1.3 -.7 -. 1 3.3 4.4 -.3 7 8 Financial sectors.................... 1.1 .2 .3 .7 .4 1.3 .9 -1.1 .5 .5 1.6 1.1 1.6 -.2 8 9 Mail float............................... -.6 -. 1 .9 2.5 - .5 4.7 2.0 1.2 -1.3 -1.8 -.2 -.4 .5 4.1 9 10 Rest of the world...................... .1 . 1 .5 .3 -.3 .7 .3 . 1 1.2 -1.8 -.6 -1.6 2.4 1.0 10 II. Time and savings accounts 11 Net increase—Total........................... 28.7 29.5 30.4 33.0 20.3 35.0 30.8 24.6 24.5 16.7 15.5 52.3 45.4 42.4 11 12 At commercial banks—Total........ 15.6 14.3 14.5 20.0 13.3 21.6 18. 1 15. 1 20. 1 11.6 6.2 35.1 23.7 24.0 12 13 Corporate business.................... 3.7 3.9 3.2 3.9 -.7 2.5 .9 4. 1 1.7 -3.9 -4.6 10.0 -.9 3.7 13 14 State and local govts.................. 1.0 1.6 1.7 2.4 1.3 3.3 3. 1 -.4 2.1 1.9 1.5 5.7 3.4 .7 14 15 Foreign depositors..................... .6 1.0 1.4 .6 .8 .2 .5 -.2 2.0 .6 1.0 1.2 2.4 1.0 15 16 Households................................ 10.3 7.9 8.2 13.3 11.9 15.9 13.8 11.6 14.3 13.0 8.5 18.1 18.7 18.7 16 17 At savings institutions.................. 13.1 15.2 15.9 13.0 7.1 13.4 12.7 9.5 4.4 5.1 9.3 17.2 21.7 18.3 17 18 Memo: Households total................ 23.4 23.0 23.9 26.5 19.2 29.4 26.3 21.4 19.2 18.3 17.8 35.0 39.1 36.5 18 HI. U.S. Govt, securities 19 Total net issues.................................. 7.9 5.0 7.1 3.6 6.3 -3.8 8.5 10.8 6.7 4.9 2.9 8.3 -21.1 35.2 19 20 Short-term marketable.................. .7 1.4 4.0 3.5 2.2 -2.9 5.4 -1.5 -7.3 7.6 10.1 10.2 -35.7 31.2 20 21 Other.............................................. 7.3 3.6 3.0 .2 4.1 -.9 3.2 12.3 14.1 -2.7 -7.2 -1.8 14.5 4.0 21 22 Net acquisitions, by sector................ 7.2 5.9 7.1 3.6 6.3 -3.8 8.5 10.8 6.7 4.9 2.9 8.3 -21.1 35.2 22 23 Federal Reserve System................ 1.9 2.8 3.5 3.7 3.5 5.1 2.3 2.8 1.7 5.7 3.8 5.6 2.9 3.8 23 24 Short-term................................. 2.0 4.9 2. 1 3.7 5.4 .1 -3.4 2.8 -.3 6.7 12.4 -4. 1 2.3 24 25 Commercial banks........................ 1.4 -2.6 .4 -2.4 -3.4 -.9 1.0 -2.7 -.3 -5.7 -4.8 16.9 -3.4 21.5 25 26 Short-term marketable............... -5.2 -3.5 3.9 -1.7 -4.5 -.1 4.6 -10.2 -.5 -2.8 -4.4 9.9 -7.2 19.0 26 27 Other direct................................ 5.2 .5 -4. 1 -1.5 1.2 -2.8 -4.1 7.6 -2.3 -.3 -.3 4.8 -.3 1.1 27 28 Nonguaranteed.......................... 1.4 .3 .6 .8 2.0 .4 2.6 -2.6 -. 1 2.2 4.2 1.4 28 29 Nonbank finance........................... 1.6 -.5 2.0 -.8 .9 -4.2 -.3 4.0 -4.6 3.4 .8 -1.1 -8.9 9.2 29 30 Short-term marketable............... .8 -1.3 1.2 -.4 1.5 -3.2 1.5 3.2 -2.6 3.8 1.4 3.4 -10.9 10.2 30 31 Other direct............................... .6 .6 .5 -.7 -1.0 -1.7 -1.6 -.2 -2.4 -.5 -.9 -5.2 .6 -.7 31 32 Nonguaranteed.......................... .2 .3 .3 .3 .4 .7 -.2 .9 .4 . 1 .4 .8 1.4 -.3 32 33 Foreign.......................................... 1.3 .6 .5 -. 1 -2.6 -1.7 2.2 -2.3 -1.6 -4.4 -2. 1 3.3 1.8 -1.4 33 34 Short-term.................................. 2.2 -.6 . 1 -.4 -.8 -2.4 2.6 -1.2 -.3 -2.4 .7 3.2 .5 -2.1 34 35 Pvt. domestic nonfinan. sector. . .. 1.7 4.7 .8 3.2 7.9 -2.1 3.2 9.0 11.6 6.0 5.2 -16.5 -13.5 2.1 35 36 Short-term marketable.............. .9 1.8 -3.2 2.4 .7 2.7 3.8 -3.5 2.3 -6.3 -14.0 1.8 36 37 Other direct............................... 1 1.0 2.8 -1.1 2.1 -6.3 1.8 .7 .2 1.8 5.8 -9.5 .2 -.2 37 38 Nonguaranteed.......................... .5 .7 .4 1.3 4.6 1.0 .7 4. 1 14.3 .15 -1.4 -1.5 -.6 -.4 38 39 Savings bonds—Households .... .4 1.2 .9 .6 . 6 .5 .8 .3 .7 .3 .9 .8 .9 1.0 39 IV. Other securities 40 Total net issues, by sector................. 11.5 13.1 14.6 16.2 18.7 15.7 14.8 21.7 23.4 17.2 12.5 28.1 28.1 34.0 40 41 State and local govts...................... 5.0 6.7 5.9 7.3 6.0 6.7 7.8 6.3 6.9 4.6 6. 1 10.3 11.5 9.8 41 42 Nonfinancial corporations............. 5.1 3.6 5.4 5.4 11.4 7.1 2.8 12.2 15.5 11.3 6.6 14.3 15.8 21.7 42 43 Commercial banks........................ . 1 .3 . 6 .8 . 1 . 1 .4 . 1 .3 .8 . 1 43 44 Finance companies........................ .3 1.4 2.1 1.9 .8 1.0 3.0 1.7 .5 1.2 -.4 1.7 -.3 1.0 44 45 Rest of the world.......................... 1.0 1.1 .7 .8 .5 .8 .8 1.4 .2 .2 1.0 1.0 1.6 45 46 Net purchases..................................... 11.5 13.1 14.6 16.2 18.7 15.7 14.8 21.7 23.4 17.2 12.5 28.1 28.1 34.0 46 47 Households.................................... -1.7 -2.9 1.5 .1 3.1 -.2 -2.4 7.4 4.7 3.6 -3.4 -3.9 -7.1 2.6 47 48 Nonfinancial corporations............. -.4 .9 .2 .7 .8 .8 .8 .8 .8 .7 .8 .7 .7 .8 48 49 State and local govts...................... 2.0 2.5 2.8 2.8 4.1 3.5 3.4 3.5 2.4 5.6 5.0 7.0 6.9 4.8 49 50 Commercial banks........................ 4.4 5.2 3.7 5.0 2.4 3.8 4.9 2.9 7.6 -.1 -.7 9.6 15.0 3.9 50 51 Insurance and pension funds......... 7.5 7.6 7.5 9.5 9.5 10.4 9.9 11.6 8.3 9.5 8.6 14.0 11.1 14.9 51 52 Finance n.e.c,.'............................... -.3 -.2 -.8 -1.6 -2.3 -1.8 -1.7 -5.4 -2.3 -2.9 1.3 -2.1 -3.0 1.8 52 53 Security brokers and dealers.... .4 .2 1 . 1 .4 -2.8 -.3 1.0 2.6 -1.9 -2.9 2.4 53 54 Investment cos., net................... -.8 -.5 -.8 -1.5 -2.5 -2.2 -1.7 -2.6 -2.1 -4.0 -1.3 -.2 -.1 —. 6 54 55 Portfolio purchases................ 1.1 .8 1.1 1.6 1.3 1.5 2. 1 3.0 .8 -1.1 2.5 3.7 2.1 2.9 55 56 Net issues of own shares........ 1.9 1.2 1.9 3.0 3.8 3.7 3.8 5.6 2.9 2.9 3.8 3.9 2.3 3.6 56 57 Rest of the world.......................... .1 .3 -.1 -.4 .9 -.9 .2 .7 2.1 .4 .4 .5 1.3 2.2 57 V. Mortgages 58 Total net lending............................... 21.3 25.0 25.3 25.5 19.6 26.2 26.0 25.7 22.6 17.0 13.2 17.3 19.0 23.0 58 59 1- to 4-family................................. 13.4 15.7 15.4 16.1 10.0 16.5 16.8 14.4 11.4 7.4 6.9 9.2 9.3 13.9 59 60 In process................................... .4 .5 -.3 ♦ -.9 -.2 -.1 .3 -1.1 -1.7 -1.2 .5 1.4 1.3 60 61 Disbursed................................... 13.0 15.2 15.7 16.2 11.0 16.7 16.9 14.2 12.5 9.1 8.1 8.7 8.0 12.6 61 62 Other.............................................. 7.9 9.3 10.0 9.4 9.6 9.7 9.2 11.3 11.2 9.6 6.2 8.2 9.7 9.2 62 6 6 3 4 Ne H t o a u cq se u h is o i l t d io s n .. s .. .. . . . . . .. . . . .. . . . . . .. . . . . . .. . . . .. . . . . . .. . . . . . .. . . . .. . . . . . .. . . . . . .. . . . . . .. . . . .. 21.3 2 - 5 .3 .0 2 - 5 .2 .3 2 - 5 .9 .5 1 - 9 .4 .6 - 2 1 6 . . 2 2 2 - 6 .3 .0 - 2 2 5 . . 3 7 2 - 2 .2 .6 17 . . 6 0 13. .5 2 1 - 7 .4 .3 - 1 1 9 . . 7 0 2 - 3 .3 .0 6 6 3 4 65 U.S. Government.......................... .3 -1.0 .2 1.0 3.4 .8 1.6 4.4 4.1 3.1 1.8 2.4 1.6 3.0 65 66 Commercial banks........................ 4.0 4.9 4.5 5.6 4.6 6.3 5.8 5.4 5.3 4.3 3.6 2.0 3.5 4.4 66 67 Savings institutions........................ 13.2 16.1 14.8 13.1 6.6 13.4 12.7 11.5 7.3 3.7 3.7 6.8 10.3 12.9 67 68 Insurance....................................... 3.0 4.0 5.1 5.5 5. 1 5.3 5.4 5.7 5.9 5.3 3.6 5.2 2.9 2.0 68 69 Mortgage companies..................... .5 .8 .4 .5 -.6 .8 .1 .3 -.6 -.9 -1.1 .3 1.3 -.2 69 VI. Bank loans n.e.c. 70 Total net borrowing............................ 6.2 7.6 8.7 16.4 8.2 15.6 17.1 9.7 16.0 5.2 2.0 1.7 8.0 8.1 70 71 Nonfinancial business.................... 4.3 5.0 5.1 12.2 9.9 11.0 12.4 10.1 15.2 9.6 4.7 5.7 11.3 3.2 71 72 Nonbank finance........................... 1.0 1.7 .5 2.4 -1.4 3.1 3.5 .6 -.1 -3.5 -2.7 -4.3 -3.3 2.1 72 73 Households.................................... .5 .4 1.4 1.3 -.1 1.4 1.6 -.6 .3 -.7 .5 .9 .7 2.0 73 74 Rest of the world.......................... .4 .5 1.7 .4 -.2 . 1 -.4 -.4 .5 -.3 -.5 -.6 -.8 .8 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. See also notes on p. A-65.3. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.3 Notes to Table 2 of deposits and credit market instruments by households, nonfinancial I. Saving and investment Derived statistically from Commerce Dept, business, and State and local govts. Line 49 includes household savings income and product accounts. Tables showing the relation to those bonds as well as marketable issues; see Table 3, line 39. Line 51 includes accounts are in Nov. 1965 Bulletin. Gross national saving (line 1) is the consumer credit and open market paper in addition to private securities sum for domestic sectors of gross-saving entries in Table 4. It is before and mortgages. Line 52 is net of free credit balances at brokers. deduction of capital consumption allowances. Govt, saving is net of III. Direct lending in credit markets. Federal Reserve total is Table public outlays for capital goods as well as current operations. Gross 4(G), lines 5 less 14. Commercial-bank total, line 61, is Table 4(H), line 5; national investment (line 8) is gross private domestic investment in includes security credit. Nonbank finance totals include security credit income-and-product accounts plus consumer durables plus net foreign both in lending and funds raised and exclude investment company shares investment. Net foreign investment differs from corresponding income- on both sides; line 65 is lines 7 and 16 of Table 4(1), less line 5 of 4(1.8), and-product series by amount of errors and omissions in balance of pay­ and line 66 is line 22 of Table 4(1) plus line 5 of 4(1.7) less line 5 of 4(1.8). ments statement. Line 69 is the net sum of lines 49-52 in Table 2-II. Relation of saving-investment discrepancy to flow of funds matrix is described on p. 1536 of Nov. 1965 Bulletin. Notes to Table 3 II. Financial flows-Summary. This table is described in Nov. 1962 I. Demand deposits and currency. Lines 5-8 are holder record; fine 9 Bulletin, p. 1405. Total net funds raised (line 17) is borrowing through is difference between holder and bank record. credit markets (line 25 of Table 1) by households, nonfinancial business, III. U.S. Govt, securities. All holdings stated in par values; excludes govts., and foreigners. Credit market funds raised by all sectors consists special issues to International Monetary Fund and includes nonguaran­ of line 17 plus financial-sector borrowing (Table 4(H), line 32, and Table teed issues of Govt, agencies and loan participation certificates. See note 7 4(1), line 22). to Table 4(E) below. Short-term category consists of direct marketable U.S. Govt, short-term securities are direct marketable issues due in less issues due in less than 1 year plus part of those due in less than 2 years. than 1 year plus part of those due in less than 2 years. For further IV. Other securities. Total excludes open-end investment co. shares; detail see Table 4(E), lines 26-30. these are shown as a deduction on line 56, offsetting net purchases of Demand deposits on lines 37 and 45 are on bank-record basis rather such shares included in the other lines (mainly households) under “net than holder records shown in Table 4. Line 37 includes time deposits. purchases." Net purchases includes small amounts for mutual savings Difference is described in Aug. 1959 Bulletin, p. 852 ff. Foreign funds con­ banks not shown separately. sist of lines 9-12 of Table 4(J). Sources n.e.c. (line 41) is mainly financial V. Mortgages, Loans in process at savings and loan associations are institution net sources of funds other than deposits, insurance and pen­ included in totals outstanding and treated as savings and loan liability. sion reserves, security credit, and credit mkt. funds. Line 63 includes holdings by State and local govts, not shown separately. Private domestic nonfinancial sectors (line 42) consists of acquisition 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 111 IV I 11 III IV I II III (A) Households1 1 Personal income.............................. 442.6 465.5 497.5 537.8 584.0 544.6 556. 1 567.8 577.3 589.3 601.5 612.9 619. 1 631.0 1 2 Less: Personal taxes & nontaxes.. 57.4 60.9 59.4 65.6 75.2 65.2 66.7 70.4 74. 1 76.9 79,6 80.2 79.1 82.8 2 3 Personal outlays................ 363.7 384.6 411.9 445.0 479.0 448.5 460. 1 470.9 474.6 483.2 487.4 493.9 504.0 509.6 3 4 Equals: Personal saving.................. 21.6 19.9 26.2 27.2 29.8 30.9 29.3 26.6 28.7 29.2 34.6 38.8 36.0 38.5 4 5 Plus: Credits from Govt, insur+ . 3.5 4.0 4.4 4.8 5.1 5.0 4.7 4.9 5.4 5.0 5.2 5.4 6.2 5.5 5 6 Other adjustments 3........... .5 .5 .6 .9 1.3 .8 1.7 1.7 .7 .9 2.0 1.4 .7 1.2 6 7 Net durables in consumpt... 6.7 8.9 11.2 14.6 14.9 14.3 15.8 17.7 13.3 15.0 13.6 11.4 13.5 13. 1 7 8 Purchases........................ 49.5 53.9 59.2 66.0 70.3 66.1 68.6 71.6 68.2 70.9 70.6 69.4 72.5 72.7 8 9 Less: Cap. consumpt,... . 42.9 45.0 48.0 51.4 55.4 51.9 52.8 53.8 54.9 55.9 57.0 58.0 59.1 59.6 9 10 Equals: Net saving.......................... 32.3 33.3 42.4 47.5 51.1 50.9 51.5 50.9 48. 1 50. 1 55.5 57.0 56.3 58.3 10 11 Plus: Capital consumpt.4........... 49.8 52.4 55.9 59.8 64. 1 60.3 61.3 62.5 63.6 64.7 65.8 67.0 68. 1 68.8 1 I 12 Equals: Gross saving...................... 82.0 85.8 98.3 107.3 115.3 111.2 112.8 113.4 111.7 114.8 121.3 123.9 124.5 127.1 (2 13 Gross investment (14+18)............... 83.5 87.2 97.8 107.6 114.5 109.4 111.1 113.2 111.3 116.5 117.0 119.9 123.9 127.3 13 14 Capital expend, (net of sales).... 71.5 76.3 82.2 89.2 93. 1 89.4 92.2 95.5 91.8 93.8 91.3 88.1 91.6 93.8 14 15 Residential construction........... 18.7 19.0 19.3 19.1 18.4 19.1 19.3 19.4 19.2 18.5 16.3 14.3 14.7 16.7 15 16 Consumer durable goods......... 49.5 53.9 59.2 66.0 70.3 66.1 68.6 71.6 68.2 70.9 70.6 69.4 72.5 72.7 16 17 Plant and equip, (nonprofit)... 3.2 3.4 3.7 4.1 4.4 4.1 4.3 4.5 4.4 4.3 4.5 4.4 4.3 4.3 17 18 Net finan. investment (19—37)......... 12.1 10.9 15.6 18.4 21.4 20.0 18.9 17.7 19.5 22.7 25.7 31.8 32.3 33.6 18 19 Net acquis, offinan. assets5......... 32.6 37.2 42.9 48.3 43.4 49.7 50.9 44.4 43.7 41.8 43.8 49.1 49.0 58.2 19 20 Demand dep. and currency,... 2.7 4.3 6.4 7.1 1.9 9.7 11.7 -2.2 1.4 .5 8.1 11.0 7.1 3.4 20 21 Savings accounts...................... 23.4 23.0 23.9 26.5 19.2 29.4 26.3 21.4 19.2 18.3 17.8 35.0 39.1 36.5 21 22 At commercial banks........... 10. 3 7.9 8.2 13.3 11.9 15.9 13.8 11.6 14.3 13.0 8.5 18. 1 18.7 18,7 22 23 At savings instutitions .. .... 13.0 15. 1 15.8 13.2 7.3 13.6 12.5 9.8 4.9 5.3 9.3 16.9 20.4 17.9 23 24 Life insurance reserves............. 3.7 4.2 4.3 4.8 4.7 5. 1 4.8 4.7 4.7 4.6 4.6 5.3 3.9 4.6 24 25 Pension fund reserves.............. 8.8 9.9 11.2 11.7 13.3 11.8 11.7 13.0 11.5 13.5 15. 1 12.4 14.3 14.7 25 26 Cr. market instr........................ -1.7 .4 3.2 2.2 10.6 -2.2 -.6 13.7 15.4 11.1 2,0 -9.9 -10.5 3.2 26 27 U.S. Govt, securities............ 3.5 1.9 3.0 7.9 -.8 2. 1 8.7 1 1.0 7.0 4.9 -5.5 -1.7 .9 27 28 Savings bonds................... .4 1.2 .9 .6 .6 .5 .8 .3 .7 .9 .8 .9 1.0 28 29 Short-term mkt.................. .4 2.8 - 1.8 3.2 1.8 5.1 -1.0 3.1 1.4 2.9 -.3 -3.3 -4.5 -7.5 29 30 Other direct...................... -1.1 -.9 2.0 -1.0 1.5 -5.8 2.1 3.3 -2.8 1.2 4.3 -2.9 .5 8.4 30 31 Nonguaranteed................. .3 .4 .8 .2 4.1 -.6 .3 2.0 11.8 2.5 * -. 1 1.4 -1.0 31 32 State and local oblig............. .8 .7 2.2 2.1 2.2 2.9 3.0 2.7 -3.1 4.4 4.8 -.6 -3.0 6.3 32 33 Corporate and fgn. bonds. .. -.7 -1.0 -.8 -.3 1.2 -1.3 -2.1 3.5 3.4 .8 -2.8 -.4 .9 2.7 33 34 Corporate stock................... -1.8 -2.5 . 1 -1.7 - .4 -1.8 -3.4 1.2 4.3 -1.6 -5.3 -3.0 -5.0 -6.4 34 35 Mortgages............................ * -.3 -.2 -.9 - .4 -1.2 -.3 -2.3 -.2 .6 .5 -.4 -1.7 -.3 35 36 Net invest, in noncorp. bus.... -4.9 -5.3 -7.2 -5.7 -7.4 -5.7 -5.8 -8.2 -8.6 -7.0 -5.7 -8.1 -6.8 -6.4 36 37 Net increase in liabilities......... 20.5 26.3 27.2 29.9 22.0 29.7 31.9 26.6 24.2 19.1 18.1 17.3 16.7 24.6 37 38 Credit mkt. instruments........... 20.4 24.1 21.2 28.7 21.7 29.3 29.0 25.1 23.1 21.0 17.7 15.2 13.4 20.3 38 39 1- to 4-family mtgs............... 12.9 14.8 16.0 16.0 12.0 16.6 16.8 14.2 13.0 11.3 9.6 7.4 7. 1 11.5 39 40 Other mortgages.................. .9 .9 1.0 1.1 1.1 1.1 1.1 l.l 1.1 1.1 1.1 1.1 1.0 1.0 40 41 Consumer credit............. 5.5 7.3 8.0 9.4 6.9 9.3 8.8 9.3 7.0 6.8 4.6 4.3 3.4 5.1 41 42 Bank loans n.e.c................... .5 .4 1.4 1.3 -.1 1.4 1.6 -.6 .3 -.7 .5 .9 .7 2.0 42 43 Other loans 6........................ .7 .6 . 8 .8 1.8 .9 .7 1.2 1.7 2.5 2.0 1.5 1.2 .8 43 44 Security credit.......................... -.1 2.0 -.2 .8 -.2 ♦ 2.6 .9 .8 -2.4 1 1.6 2.8 3.8 44 45 Discrepancy (12—13)...................... -1.5 -1.5 .5 -.3 .8 1.8 1.7 .2 .3 -1.7 4.3 4.0 .6 -.2 45 For notes see p. A-65.9 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.4 FLOW OF FUNDS □ FEBRUARY 1968 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 11! IV III IV 11 in (B) Nonfinancial business—Total 1 i Income before taxes 2,,,,,............. 102.4 106.9 115.3 128.2 137.2 128.8 133.1 137.3 136.5 136.6 138.4 131.6 1 32.1 mt 1 2 Gross saving.................................... 55.0 57.3 65.0 71.0 76.3 71.4 73.2 74.4 75. 1 75.9 79.8 75. 1 75.4 76.4 2 3 Gross investment............................ 53.3 57.2 59.5 69.7 71.9 69.7 71.1 69.5 70.0 71.7 76.7 73. 1 70.8 71.5 3 4 Capital expenditures................. 60.4 63.8 70.2 83.4 94.2 83.9 87.7 90.2 93.8 92.5 100.4 90.9 85.3 90.4 4 5 Fixed investment......................... 54.4 57.9 64. 3 74.0 80.8 74.8 78.0 80.4 79.8 81.1 82.0 83.7 84.8 86.6 5 6 Business plant & equipment. . . 47.8 49.9 56.5 66. 1 74.8 67.0 70.6 72.8 73.3 75.9 11.3 76.6 76.4 11.1 6 7 1 -4 family residential const. 3... .7 1.0 . 1 .7 - .8 .9 .5 .5 -.2 -1.6 - 1.8 1.0 2.5 2.4 7 8 Other residential...................... 5.9 7.0 7.7 7.2 6.8 6.9 7.0 7. 1 6.7 6.8 6.4 6. 1 5.9 6.4 8 9 Change in inventories 4............... 6.0 5.9 5.8 9.4 13.4 9. 1 9.6 9.8 I4.0 11.4 18.4 7.1 .5 3.8 9 10 Net financial investment................... -7.1 -6.5 - 10.7 -13.7 — 22.3 - 14.2 -16.5 -20.7 -23.8 -20.8 -23.7 - 17.8 - 14. 5 —18.9 10 11 Net acquis, of finan, assets....... 17.5 /9.8 14.1 24.5 19. 7 23. 7 25.8 27.0 24.8 17.8 9.4 15.3 6.1 25.2 11 12 Net increase in liabilities 5....... 24.6 26.4 24. 7 38.2 42.0 37.8 42.4 47. 7 48.6 38.6 33.1 33.1 20.6 44.1 12 13 Credit mkt. instruments.......... 18.2 19. 1 22.1 29.6 33.5 30.6 27.4 38.7 43.3 30.9 21.1 34.9 36. 5 31.9 13 14 Securities.............................. 5. 1 3.6 5.4 5.4 11.4 7.1 2.8 12.2 15.5 11.3 6.6 14. 3 15.8 21.7 14 15 1-4 family mortgages............ . 1 .4 -.3 .2 - 1.0 . 1 . 1 - . 4 -2.2 -1.5 1.3 .9 1.1 1 5 16 Other mortgages.................. 7.0 8.4 9.0 8.3 8.5 8.6 8. 1 10.2 10.0 8.4 5.1 7.1 8.7 8.2 16 17 Bank loans n.e.c................... 4.3 5.0 5. 1 1 2.2 9.9 11.0 12.4 10. 1 15.2 9.6 4.7 5.7 11.3 3.2 17 18 Other loans 5...................... . 1.7 1.8 3.0 3.4 4.8 3.8 4.0 6. 3 3.0 3.6 6.2 6.5 —. 2 3.7 18 19 Trade debt............................... 5.5 7.0 5.8 8.2 9.1 7.8 9. 1 8.6 14.9 5.3 7.6 4.8 5.9 4.4 19 20 Other liabilities........................ .9 .2 -3.2 .4 - .6 - .6 5.8 .4 -9.6 2.5 4.4 -6.7 -21.8 1 .8 20 21 Discrepancy.................................... 1.6 . 1 4.3 1.7 2. 1 5.0 5. 1 4.2 3.1 2.0 4.6 5.0 21 (C) Farm and noncorporate nonfinancial business * 1 Net income 2.... ............................ 57.5 58.4 60. 1 65.0 61.1 65.6 66. 3 68.4 67. 8 67.7 67. 1 66. 5 66.6 67.7 I 2 Gross saving L ............................. 13.1 13.5 14.5 15.3 16.0 15.3 15.5 15.7 15.9 16.1 16.3 16.5 16.6 16.9 2 3 Gross investment............................. 13.1 13.5 14.5 15.3 16.0 15.3 15.5 15.7 15.9 16. 1 16.3 16.5 16.6 16.9 1 4 Capital expenditures................. 15.7 17.1 16.6 19.9 19.1 19.8 21.0 19.7 19.6 17.2 19.7 17.1 18.9 20.8 4 5 Fixed investment.......................... 14.4 15.6 16.6 18.2 17.9 18.3 18.8 18.5 17.8 17.4 18.0 18.4 19.2 19.3 5 6 Change in inventories 4............... 1.3 1.5 * 1.7 1. 1 1.5 2.1 1.2 1.8 -.3 1 .8 -1.3 -.3 1 .5 6 7 Net financial investment................... -2.6 -3.6 -2.1 - 4.6 -3.1 -4.5 -5.S -4.0 -3.7 -1.1 -3.4 - .6 -2.2 -3.9 7 8 Net acquis, of finan. assets........... .5 .7 1.0 .9 .9 . 7 1.0 .8 .8 .8 1.1 1.2 .6 1.3 8 9 Net increase in liabilities $. 3.1 4.3 3.2 5.5 4.0 5.1 6.5 4.9 4.5 1.9 4.6 1.8 2.8 5.2 9 10 Credit mkt. instruments........... 1.0 8.6 8.6 10.5 10. 1 10.0 11.2 13. 1 9.9 1.2 10.2 6.3 8.9 9.4 10 11 Mortgages............................ 4.2 5.2 5.4 5.4 4.8 5.5 5.3 6.2 5.9 4.3 2.8 4.8 5.5 5.6 11 12 Bank loans n.e.c.................... 1.8 2. 1 1.5 3.1 3.0 2. 3 3.7 3.6 2.4 1.4 4.6 4.3 1.2 12 13 Other loans 5,8..................... 1.0 1.3 1.7 2. 1 2.3 2.2 2.2 3.3 1.6 1.6 2.8 1,4 -.9 2.6 13 14 Trade debt, net........................ 1.0 1.1 1.8 .8 1.3 .9 1.1 3.3 1.6 . 1 3.5 .8 2.3 14 15 Proprietors’’ net investment 9... -4.9 -5.3 — 7.2 -5.7 -7.4 -5.7 -5.8 -8.2 -8.6 -7.0 -5.7 -8.1 -6.8 -6.4 15 (D) Corporate nonfinancial business 1 o 1 Profits+IVA................................... 44.9 48.6 55.2 63. 1 69.5 63.2 66.9 68.9 68.7 69.0 71.3 65.1 65.4 65.5 1 2 Profits tax accruals.......................... 20.8 22.8 24.2 27.6 30.2 27.3 29.2 30.3 30.2 30.2 30.1 28.0 28.1 28.4 2 3 Net dividend payments 11.............. 11.4 12.7 13.2 15. i 16.7 15.6 16.5 16.8 16.8 16.8 16.2 17.4 18.3 17.9 3 4 Net savings+IVA (1-2-3)................ 12.6 13.1 17.8 20.5 22.6 20.4 21.2 21.8 21.7 21.9 25.0 19.7 19.1 19.2 4 5 Capital consumption....................... 29.2 30.8 32.8 35.3 37.7 35.7 36.6 37.0 37.5 37.9 38.4 38.9 29.6 40.4 5 6 Current surp.= gross saving (4+5).. 41.8 43.9 50.5 55.7 60.3 56.1 57.8 58.8 59.2 59.8 63.5 58.6 58.7 59.5 6 7 Gross investment............................. 40.2 43.8 45.0 54.4 56.0 54.4 55.6 53.8 54. 1 55.6 60.4 56.6 54. 1 54.6 7 8 Capital expenditures........... 44.7 46.7 53.6 63.5 75.2 64.1 66.7 70.5 74.2 75.3 80.6 73.8 66.4 69.6 8 9 Fixed investment.......................... 40.0 42. 3 41.1 55.8 62.9 56.5 59.2 61.9 62.0 63.7 64.0 65.3 65.6 67.3 9 10 Plant and equipment................ 37.0 38.6 44.1 52. 1 60.2 52.9 55.7 58.4 59.0 61.3 61.9 62. 1 61.7 63.2 10 11 Residential construction.......... 3.0 3.7 3.6 3.7 2.7 3.7 3.5 3.5 3.0 2.3 2.1 3.3 3.9 4.2 11 12 Change in inventories 4............... 4.7 4.3 5.9 1.1 12.3 7.6 7.5 8.6 12.2 11.7 16.6 8.4 .8 2.3 12 13 Net financial investment. ................. — 4.5 — 2.9 — 8.6 -9.1 -19.2 — 9.7 — 11.1 -16.7 -20.1 -19.8 -20.3 - 17.2 -12.3 -15.0 13 14 Net acquis, of finan. assets ........... 16.9 19.1 13.0 23.6 18.8 23.0 24.8 26.1 24.0 17.0 8.3 14.1 5.5 23.9 14 15 Liquid assets............................ 4.1 4.3 .8 .8 1.0 1.6 .1 8.4 1.3 -.8 -4.1 4.4 -9.8 5.1 15 16 Demand dep. and curr......... -.9 -.8 -2.3 - 1.8 .7 -2.6 .2 2.3 .2 1.5 -1.3 -3.9 -1.8 3.6 16 17 Time deposits........................ 3.7 3.9 3.2 3.9 - .7 2.5 .9 4.1 1.7 -3.9 -4.6 10.0 -.9 3.7 17 18 U.S. Govt, securities............ .5 . 5 —1.5 -2. 1 -1.2 .7 - 1.1 - .5 -1.6 - 1.6 -1.1 -4.8 -7.0 -1.6 18 19 Open market paper............... .9 .7 1.4 .8 2.3 1.1 .7 2.5 1.0 3.2 2.4 3.0 - . 1 -.6 19 20 State and local oblig................. - .4 .9 .2 .7 .8 .8 .8 .8 .8 .7 .8 .7 .7 .8 20 21 Consumer credit............. .9 .7 1.0 1.2 1.1 1.1 1.2 2.6 .9 .8 -.1 1.5 1.0 .9 21 22 Trade credit.............................. 8.2 8.5 8.3 12.8 10.8 10.7 15.2 10. 5 17.1 9.6 6.0 4.2 9.7 6.4 22 23 Other financial assets 12........... 4.1 4.8 2.8 8.2 5.2 8.8 6.9 3.9 4.0 6.1 6.2 3.3 4.0 10.6 23 24 Net increase in liabilities.............. 21.5 22.0 21.6 32.7 38.0 32.7 35.9 42.8 44.1 36.7 28.5 31.3 17.8 38.9 24 25 Credit mkt. instruments.......... 11.2 10. 5 13.5 19.1 23.4 20.6 16.2 25.6 33.4 23.6 11.0 28.6 27.6 28.5 25 26 Corporate bonds................... 4.6 3.9 4.0 5.4 10.2 7.6 3.8 12.7 9.6 10.5 8. 1 13.3 13.9 18.6 26 27 Corporate stock.................... .6 -.3 1.4 1.2 -.5 - 1.0 -.5 5.9 .9 -1.5 .9 1.9 3.1 27 28 Mortgages............................. 2.9 3.5 3.3 3.1 2.6 3.2 2.9 3.9 3.7 2.0 .9 3.5 4.0 3.7 28 29 Bank Ioans n.e.c.................... 2.5 2.9 3.6 9.2 6.9 8.7 8.8 6.5 12.8 8.2 . 1 5,7 7. 1 2.1 29 30 Other loans13....................... .7 .5 1.3 1.3 2.5 1.6 1.8 3.0 1.4 2.1 3.3 5.0 .7 1.2 30 31 Profits tax liability14............... 1. 1 1.5 .7 1.9 .2 1.4 5.4 2.8 -6.7 2.7 1.8 1,3 -20.6 .1 31 32 Trade debt................................ 4.4 6.0 4.0 7.4 7.8 7.0 8. 1 8.6 11.6 3.7 7.4 1.3 5.2 2.1 32 33 Other liabilities........................ 4.7 4.0 3.3 4.3 6.6 3.6 6.2 5.7 5.8 6.7 8.3 . 1 5.6 8.1 33 34 Discrepancy..................................... 1.6 . 1 5.5 1.3 4.3 1.7 2. 1 5.0 5.1 4.2 3.1 2.0 4.6 5.0 34 35 Memo: Net trade credit,................ 3.7 2.5 4.3 5.3 3.0 3.8 7. 1 1.9 5.4 5.9 -1.4 2.9 4.5 4.3 35 36 Profits tax payments14.................... 20.0 20.8 23.4 25.6 30.6 26.2 25.4 27.8 38.7 28.6 27.2 27.3 49.8 26.7 36 For notes see p, A-65.9. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.5 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 III IV I II 111 IV I ll III (E) U.S. Government 1 I Tax receipts (net of refunds)........... 85.9 91.4 91.2 99.6 109.9 98.1 101.8 105. 1 109.1 111.6 113.9 112.0 110.9 114.7 I 2 Individual income........................ 48.6 51.5 48.6 53.8 61.7 53.3 54.6 57.7 60.9 63.1 65.2 65.5 64.0 67.5 2 3 Corp, profits tax accruals............ 22.7 24.6 26.4 29.3 32.3 29.0 30.9 32.2 32.2 32.4 32.3 30.3 30.3 30.6 3 4 Other............................................ 14.6 15.3 16.1 16.5 15.9 15.7 16.3 15.2 15.9 16.2 16.3 16.2 16.5 16.7 4 Social insurance programs 2 5 Premiums received...................... 18.5 21.0 21.6 22.8 30.8 22.9 23.4 29.4 30.0 31.4 32.2 34.4 34.6 35.3 5 6 Benefits paid................................ 17.4 18.2 18.7 20.3 22.5 20.5 21.1 21.5 21 . 1 22.7 24.8 27.5 27.6 28.2 6 Lifeinsur. & retirement programs 3 7 Premiums received...................... 2. 1 2.1 2.2 2.3 2.5 2.4 2.4 2.5 2.5 2.5 2.6 2.6 2.6 2.6 7 8 Benefits paid................................ 2.9 3.2 3.2 3.3 3.9 3.3 3.5 3.7 3.9 4.0 4.0 4.1 4. 1 4.2 8 9 Net grants and donations paid 4., . . 19.4 20.5 22.8 24.2 29.8 26.5 24.7 28.4 29.0 30.5 31.5 31.9 31.2 32.1 9 10 Net interest paid .............................. 7.2 7.7 8.3 8.7 9.5 8.7 8.9 9.1 9.4 9.6 10,0 10.4 10.4 10.5 10 11 Net purchases of goods & services.. 63.4 64.2 65.2 66.8 77.0 67.6 69.8 72.1 74.9 79.5 81.5 87.1 89.5 90.9 11 12 Net surplus.................................. . . -3.8 .7 -3.0 1.4 .3 -3.2 -.5 2.2 3.2 -.7 -3.3 -11.9 - 14.7 -13.2 12 13 Insurance and retirement credits 5.. 1.1 1.3 1.4 1.4 1.4 1.6 1.1 1.3 1.7 1.2 1.3 1.4 21. 1.3 13 14 Gross saving.................................... -4.8 -.6 -4.3 .1 -.9 -4.7 -1.5 1.1 1.6 -1.8 -4.6 -13.2 -16.7 -14.3 14 15 Net finan. investment (16 — 23)......... -4.7 -1.3 -2.5 -.7 -.2 -5.0 -2.3 .3 1.7 -.5 -2.4 -8.5 -18.6 -15.1 15 16 Net acquis, of finan. assets........... 4.7 4.7 5.6 5.0 8.6 -6.0 9.0 12.1 10.7 6.8 4.8 5.3 -34.4 20.4 16 17 Demand deposits & currency... 1.0 -.4 .6 -1.4 -. 1 -.94 1.3 -2.5 9.1 -4.2 -2.7 - .8 -13.5 11.7 17 1 8 Credit market instruments........ 3.3 2.7 3.8 4.7 7.9 3.2 4.6 11.1 10.0 7.8 2,8 6.1 -.8 4.7 18 19 Mortgages............................ .3 -1.0 .2 1.0 3.4 .8 1.6 4.4 4.1 3.1 1.8 2.4 1.6 3.0 19 20 Other loans........................... 3.0 3.7 3.5 3.7 4.6 2.4 2.9 6.7 5.9 4.7 ,9 3.7 -2.5 1.7 20 21 Excess of tax accruals over receipts................................. .8 1.8 1. 1 1.2 -.5 .5 2.9 2.6 -8.9 1.5 2,7 1.0 -23.0 1.5 21 22 Other financial assets 6............ -.5 .6 . 1 .5 1.3 -.3 .3 .9 .4 1.7 2,0 -1.0 3.0 2.5 22 23 Net increase in liabilities............. 9.3 6.0 8.1 5.7 8.8 -1.0 11.3 11.7 9.0 7.3 7.2 13.8 -15.8 35.5 23 24 Life insurance and retirement reserves................... 1. 1 1.3 1.4 1.4 1.4 1.6 1.1 1.3 1.7 1.2 1.3 1.4 2.1 1.3 24 25 U.S. Govt, securities 7............. 7.9 5.0 7.1 3.6 6.3 -3.8 8.5 10.8 6.7 4.9 2.9 8.3 -21.1 35.2 25 26 Svgs. bonds 8........................ .4 1.2 .9 .6 .6 .5 .8 .3 .7 .3 .9 .8 .9 1.0 26 27 Short-term marketable 9. .. . .7 1.4 4.0 3.5 2.2 -2.9 5.4 -1.5 -7.3 7.6 10.1 10.2 -35.7 31.2 27 28 Other direct........................... 4.8 1. 1 .9 -2.9 -1.4 -5.2 1.5 7.0 -3.8 -2.0 -6.9 -4.2 8.8 2.3 28 29 Nonguaranteed agency issues 1.6 1.5 .4 2.0 3.8 1.9 .9 3.4 10.3 1.2 .2 -4.2 -2.2 .8 29 30 Loan participations.............. .5 -.2 .8 .4 1.3 1.8 ♦ 1.6 6.9 -2.2 -1,3 5.7 7.1 - . 1 30 31 Other liabilities........................ .3 -.3 - .4 .6 1.1 1.2 1.6 -.3 .5 1.2 2.9 4.0 3.2 - 1.0 31 32 Discrepancy (14 —15)...................... -.2 .7 -1.8 .8 -.7 .3 .7 .7 -.1 -1.3 -2.2 -4.7 1.9 .8 32 33 Memo: Corp, tax receipts, net........ 21.9 22.8 25.3 28. 1 32.8 28.5 28.0 29.6 41.1 30.8 29.6 29.4 53.4 29.1 33 (F) State and local governments * ® 1 Tax receipts................................... 47.1 50.5 54.9 59.5 64.9 60.4 61.0 62.6 64.1 65.8 67.2 68.5 69.9 71.2 1 2 Social ins. and grants rec................ 11.5 12.9 14.5 15.6 19.7 15.9 16.8 18.5 19.4 20.2 20.7 20.8 20.5 21.4 2 3 Purch. of goods and services........... 53.7 58.2 63.5 69.6 11.2 70.5 72.5 74.3 76.2 78. 1 80.2 83.3 85.4 87.4 3 4 Net interest & transfers paid 1 1. . . . 3.9 4.0 4.3 4.3 4.5 4.3 4.3 4.4 4.4 4.6 4.7 4.9 5.2 5.3 4 5 Net surplus...................................... .9 1.2 1.7 1.2 2.9 1.5 1.0 2.4 2.9 3.3 3.0 1.0 - .2 —. 1 5 6 Less retirement credit to households 2.4 2.7 3.1 3.4 3.7 3.4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2 6 7 Equals: Gross saving...................... - 1.4 -1.5 -1.4 -2.2 -.8 -1.9 -2.5 -1.2 - .8 -.5 - .9 -3.0 -4.3 -4.3 7 8 Net financial investment (9 — 17). . .. -2.5 -2.1 -2.6 -3.1 -2,2 -2.7 -4.3 -2.8 -2.2 -1.6 -2.2 -4.0 -5.4 -5.5 8 9 Net acquis, of finan. assets........... 5.6 7. 7 6.9 8.1 8.5 7. 9 7.5 7.5 9.1 8.4 8.8 10.7 10.7 8.8 9 10 Liquid assets............................ 2.5 4.1 2.4 3.3 2.4 3.7 1.5 3.5 2.8 1.9 1.4 8.3 3.4 4.6 10 11 Demand deposits and cur.... .9 2.4 1.2 -.2 .8 2.3 -2.1 2.7 1.3 -.1 -. 1 3.3 4.4 -.3 Ll 12 Time deposits,...................... 1.0 1.6 1.7 2.4 1.3 3.3 3.1 -.4 2.1 1.9 1.5 5.7 3.4 .7 12 13 Short-term U.S. Govt. sec.. . .6 . 1 -.5 1.1 .3 -1.9 .5 1.3 -.6 .7 . 1 -.7 -4.4 4.2 13 14 Other U.S. Govt, securities. . . . .6 .6 1.0 1.2 .9 -. 1 1.8 -.5 2.9 -. 1 1.4 -5.5 -.4 -1.3 14 15 State and local obligations....... -.7 -.7 -.5 -.3 -.3 -.3 -.3 -.3 -.3 -.2 -.3 -.5 -.5 - .4 15 16 Other 12................................... 3.1 3.5 3.7 3.8 5.2 4.5 4.5 4.6 3.5 6.7 6.2 8.4 8.4 6.2 16 17 Net increase in liabilities......... 8.1 9.8 9.4 11.2 10.7 10.7 11.8 10,3 11.3 10.0 10.9 14.6 16.0 14.3 17 18 Credit market borrowing......... 5.6 1.0 6.2 7.8 6.8 7.1 8.2 6.6 7.5 6.1 6.9 10.5 11.8 10.0 18 19 State and local obligations.. . 5.0 6.1 5.9 7.3 6.0 6.7 7.8 6.3 6.9 4.6 6. 1 10.3 11.5 9.8 19 20 Short-term.............. .4 . 5 .5 1.3 .4 2.3 .5 .6 1.1 -.3 .3 . 1 -.4 2.5 20 21 Other................................ 4.6 6.2 5.4 6.1 5.5 4.4 7.3 5.7 5.8 4.9 5.8 10.2 11.9 7.3 21 22 U.S. Govt, loans................. .6 .3 .4 .4 .8 .4 .3 .4 .6 1.6 .9 .2 .3 .1 22 23 Employee retirement reserves. . 2.4 2.7 3. 1 3.4 3.7 3.4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2 23 24 Trade debt............................... .1 . I .1 . 1 . 1 .1 . 1 . 1 .1 .1 .1 .1 .1 .1 24 25 Discrepancy..................................... 1.0 .6 1.1 1.0 1.3 .8 1.8 1.6 1.4 1.1 1.3 1.0 1.0 1.1 25 26 Memo: Total U.S. Govt, sec,......... 1.2 .7 .5 2.3 1.3 -2.0 2.2 .7 2.3 .6 1.5 -6.2 -.48 2.8 26 For notes see p. A-65.9. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.6 FLOW OF FUNDS □ FEBRUARY 1968 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 HI IV I II III IV I II HI (G) Monetary authorities! 1 Current surplus............................... .1 .1 -.5 * * * * * ♦ * * * * * 1 2 Not acquis. of financial assets.......... 1.7 2.2 3.4 2.3 4,2 4.5 1.1 5.5 2.4 5.7 3.2 4.3 2.6 4.5 2 3 Gold’ and foreign exchange2....... -.8 - .4 * -1.3 -.3 1.3 -1.4 -2. 1 .2 .4 . 1 -3. 1 1.7 .4 3 4 Treasury currency........................ -.2 .2 ,7 . 3 .4 ,7 1.0 .5 .8 . 7 . 5 .5 4 5 Credit mkt. instruments............... 2.0 2.9 3.4 3.8 3.5 5.1 3.0 2.5 2.1 5.0 4.3 5.3 3. 1 3.8 5 6 U.S. Govt, securities......... 1.9 2.8 3.5 3.7 3.5 5.1 2.3 2.8 1.7 5.7 3.8 5.6 2.9 3.8 6 7 Short-term marketable. ..... 2.0 4.9 2.1 3.7 5.4 . 1 — 3.4 2.8 -. 3 6.7 12.4 -4. 1 2.3 7 8 Other.................................... -. 1 — 2.2 1.3 . 1 — 1.9 5.0 5.7 2.0 -i.o -8.6 5.7 7.0 1 .4 8 9 F.R. Boat, ................................... .6 -.3 - .4 . 3 .6 -1.2 3.6 -.5 -1.7 - .4 1.9 -2.3 .4 9 10 F.R. loans to domestic banks.... -. 1 * . 1 - . 1 . 1 -2.8 .4 .8 -.3 1.5 -1.7 -.5 - .4 -.6 10 11 Net increase in liabilities.................. 1.6 2.1 3.8 2.2 4.2 4.5 1.1 5.6 2.4 5.7 3.2 4.3 2.6 4.5 II 12 Member bank reserves................ -.4 1.0 .4 1.3 .8 .5 1 -.4 5.7 .2 -1.0 -1.5 6.4 12 13 Vault cash of coml. banks3...... .7 .6 — .4 .3 .6 ♦ -. 1 .7 -.3 .2 1.7 - .4 -.8 1.0 13 Demand deposits and currency... 14 Due to U.S. Govt.................... . 1 .3 .2 .2 -.5 . 1 2.1 . 1 2.4 3.2 -4.2 14 15 Due to rest of the world4........ * -.1 . 1 1 .2 . 1 -.2 1.3 -.5 1 . 1 -.1 15 16 Currency outside banks....... .8 1.7 2.4 2. 1 2.0 3.8 2.3 3.7 1.2 2.0 1.1 3.3 1.5 1.6 16 17 Other............................................ ♦ * .6 -.5 -. 1 -.3 -.8 -. 1 -. 1 -. 1 ♦ . 1 . 1 -.2 17 (H) Commercial banks 5 1 Current surplus............................... 1.5 1.7 1.9 2.0 2.3 1.9 2.1 2. 1 2.2 2.4 2.3 2.2 2.0 2.0 I 2 Net acquisition of financial assets . . . 20.7 20.0 23.6 30.4 20.6 26.0 36.2 20.7 34.8 14.8 12.2 35.6 21.0 57.2 2 3 Member bank reserves6............... -.4 1.0 .4 1.3 .8 .5 -.1 -.4 5.7 .2 -1.0 -1.5 6.4 3 4 Vault cash.................................... .7 .6 -.4 .3 .6 -.1 .7 -.3 .2 1.7 -.4 -.8 1.0 4 5 Total loans and investments..... 19.5 19.4 22.4 29.0 17.5 24.9 35.2 19.9 32.9 9.6 7.9 38.7 19.8 51.5 5 6 Credit market instruments....... 18.4 18.8 21.9 28.9 17.0 30.2 31.9 20.6 32.3 8.1 7.0 36.7 26.5 42.6 6 7 U.S. Govt, securities?............ 1.4 -2.6 .4 -2.4 -3.4 -.9 1.0 -2.7 -.3 -5.7 -4.8 16.9 -3.4 21.5 7 8 Short-term marketable. . .. -5.2 -3.5 3.9 -1.7 -4.5 1 4.6 -10.2 -.5 -2.8 -4.4 9.9 -7.2 19.0 8 9 Other direct...................... 5.2 .5 -4. 1 -1.5 1.2 -2.8 -4.1 7.6 -2.3 -.3 -.3 4.8 -.3 1.1 9 10 Agency issues.................... .9 .5 * 1.1 1.7 1.5 -1.5 2.1 -1.2 .8 -.9 .3 .7 10 11 Loan participations........... .5 -.2 .6 -.3 —. I .3 -1.1 1.5 . 5 -1.5 - .9 3.1 3.8 .7 11 12 Other securities & mortgages. 8.3 10.1 8.2 10.6 7.1 10.1 10.7 8.2 12.9 4.2 2.9 11.6 18.5 8.3 12 13 State and local oblig...... 4.4 5.2 3.6 5.1 2.4 3.9 5.3 2.9 7.6 -.2 -.8 8.4 13.9 3.2 13 14 Corporate bonds........ . 1 -.1 .1 -.2 -.4 . 1 1.1 1.1 .7 14 15 1- to 4-family mortgages... 2.0 2.7 2.3 3.1 2.4 3.7 3.3 2.7 3.0 1.9 1.9 1.0 1.4 1.9 15 16 Other mortgages............... 1.9 2.2 2.2 2.5 2.3 2.7 2.5 2.7 2.4 2.4 1.7 t.O 2.1 2.5 16 17 Other credit exc. security.. .. 8.7 11.3 13.4 20.7 13.3 21.0 20.2 15.0 19.7 9.7 8.9 8.1 11.3 12.8 17 18 Consumer credit............... 2.3 3.5 3.8 4.7 3.1 5.2 4.6 3.5 3.1 3.4 2.4 1.4 1.6 3.2 18 19 Bank loans n.e.c................ 6.2 7.6 8.7 16.4 8.2 15.6 16.9 9.8 16.0 5.2 2.0 1.6 8.0 8.1 19 20 Other loans 8..................... .2 .2 .8 -.5 2.0 .2 -1.3 1.7 .5 1.1 4.5 5.1 1.7 1.5 20 21 Security credit.......................... 1.1 .6 .5 . 1 . 5 -5.3 3.3 -.7 .5 1.5 .9 2.1 -6.7 8.8 21 22 Misc. assets.......................... .5 .4 .6 .7 1.1 .3 .7 .3 2.7 -.8 2.4 -1.8 3.5 -1.7 22 23 Net increase in liabilities.................. 19.8 19.3 22.0 29.1 19.4 24.7 34.9 20.0 33.4 13.3 11.0 34.2 19.5 55.2 23 24 Demand deposits, net.................. 3.7 3.8 4.8 5.6 .3 3.2 13.6 -5.4 6.8 -7.9 7.5 3.3 -5.4 27.8 24 25 U.S. Govt. 9.............................. 1.2 -.6 -1.0 -.5 -8.9 2.6 -3.3 4.6 -4.5 1. 1 -3.0 - (8. 1 17.5 25 26 Foreign1 o................................. . 1 .1 .4 .4 -.5 .5 .5 -1.2 1.2 -1.4 -.6 -1.5 2.3 1. 1 26 27 Other, net11............................. 2.3 4.3 4.4 6.2 1.3 11.5 10.5 - .8 1.0 -2.0 7. 1 7.8 10.4 9.2 27 28 Time deposits.............................. 15.6 14.3 14.5 20.0 13.3 21.6 18.1 15.1 20.1 11.6 6.2 35. 1 23.7 24.0 28 29 F.R. float.................................... .6 -.3 -.4 .3 .6 -1.2 3.6 -.5 -1.7 -.4 1.9 -2.3 .4 29 30 Borrowing at F.R. Banks............ -. 1 * .1 -. 1 . 1 -2.8 .4 .8 -.3 1.5 -1.7 -.5 -.4 — . 6 30 31 Other liabilities............................ 1.4 2.5 3.9 5.5 2.0 4.0 5.8 7.4 9.7 -.7 -5.5 3.8 3.6 31 32 Security issues.......................... . 1 .3 .6 .8 . 1 . 1 .4 . 1 .3 ♦ * .8 . 1 32 33 Discrepancy.................................. .4 .5 * .3 .6 .3 .5 .9 .3 .4 .7 .6 .2 -.2 33 34 Memo: Total loans exc, mortgages.. 9.8 11.9 13.9 20.8 13.9 15.7 23.5 14.3 20.2 It. 1 9.8 10.2 4.7 21.7 34 For notes see p. A-65.9. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.7 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 III IV 1 II III I II (I) Nonbank financial institutions1 1 Current surplus............................... 2.2 1.7 1.2 1.3 1.0 1.5 .7 .5 1.6 1.4 .4 1.1 2.0 1.5 1 2 Physical investment (Life ins.)....... .3 .5 .5 .5 .5 .4 .5 .5 .5 .5 .5 .6 .6 .6 2 3 Net acquis, of financial assets........... 32.6 37.0 37.2 37.7 31.0 36.0 39.5 40.9 23.1 26.5 33.6 40.1 25.4 53.8 3 4 Demand deposits and currency... 1. 1 .2 .3 .7 .4 1.3 .9 -1.1 .5 .5 1.6 1.1 1.6 -.2 4 5 Time deposits (Mut. svgs. bks.)... * . 1 -.2 -.2 -. 1 —. 1 * 5 6 Svgs. and loan shares (Cr. unions) . 1 . 1 -.2 -.2 -.2 . 1 -.3 -.5 -.2 .3 1.3 .5 6 7 Cr. mkt. instr............................... 30.7 33.7 35.9 35.8 29.6 33.9 35.7 40.8 21.2 26.4 30.0 32.0 19.2 50.4 7 8 U.S. Govt, securities................ 1.6 -.5 2.0 -.8 .9 -4.2 -.3 4.0 -4.6 3.4 .8 -1.1 -8.9 9.2 8 9 State and local obligations....... .9 .6 .4 -.2 1.0 -.6 -.9 .3 2.0 -.1 1.7 2.2 .4 * 9 10 Corporate bonds...................... 3.8 4.4 4.4 5.7 4.9 6.9 5.9 7.9 2.5 4.7 4.6 7.9 4.6 11.8 10 11 Corporate stock........................ 4.2 3.4 3.7 5.4 5.4 6. 1 6.7 4.0 4.4 5.2 7.9 8.1 8.5 11.6 11 12 1- to 4-family mortgages......... 11.0 14.1 13.0 12.8 4.8 13.1 12.0 10.0 5.2 1.9 2.1 6.0 7.8 8.8 12 13 Other mortgages...................... 5.7 6.9 7.3 6.3 6.4 6.5 6.2 7.5 7.5 6.4 4.2 6.3 6.7 6.0 13 14 Consumer credit................. 1.9 2.8 2.8 3.1 2.3 2.9 2.4 2.7 2.6 2.3 1.7 .9 .9 .4 14 15 Other loans.............................. 1.6 2. 1 2.4 3.3 4.0 3.1 3.6 4.4 1.7 2.7 7. 1 1.6 -.8 2.7 15 16 Security credit............................. -.3 1.9 -.5 .2 -. 1 -.3 1.7 .5 .4 -2.0 .7 1.5 1.7 3.3 16 17 Trade credit................................. .2 .2 .2 .2 .2 .2 .2 .2 .2 .3 .3 .3 .3 .3 17 18 Miscellaneous assets.................... .9 1. 1 1.2 1.2 1.1 1.3 I. 1 .7 1.3 1.6 1.0 5.0 1.5 - .4 18 19 Net increase in liabilities.................. 30.5 35.5 36.3 36.3 29.8 33.8 39.3 40.0 21.5 24.5 33.3 40.1 23.8 52.4 19 20 Time and savings acct.................. 13.1 15.2 15.9 13.0 7. 1 13.4 12.7 9.5 4.4 5.1 9.3 17.2 21.7 18.3 20 21 Ins. and pension reserves............. 9.0 10. 1 11.1 11.6 12.8 11.9 11.9 12.8 10.8 13. 1 14.5 12.2 12.0 13.8 21 22 Cr. mkt. instr.2........................... 5.7 7. 1 6.2 9.0 6.5 9.4 9.4 13.9 5.6 2.3 4.4 1.7 -5.9 7.4 22 23 Finance company bonds......... .3 1.4 2. 1 1.9 .8 1.0 3.0 1.7 .5 1.2 -.4 1.7 -.3 1.0 23 24 Investment company shares.... 1.9 1.2 1.9 3.0 3.8 3.7 3.8 5.6 2.9 2.9 3.8 3.9 2.3 3.6 24 25 Mtg. loans in process............... .4 .5 -.3 * -.9 -.2 -.1 .3 -1.1 -1.7 -1.2 .5 1.4 1.3 25 26 Bank loans n.e.c...................... 1.0 1.7 .5 2.4 — 1.4 3.1 3.5 .6 -. 1 -3.5 -2.7 -4.3 -3.3 2.1 26 27 Other loans.............................. 2.0 2.3 2.0 1.7 4.3 1.8 -.8 5.6 3.4 3.3 4.9 -6.0 -.5 27 28 Finance co. paper................ 1.2 1.0 1.5 1.0 3.4 1.3 -.4 2.8 1.6 2.2 6.9 2.9 .3 .6 28 29 FHLB loans......................... .8 1.3 .5 .7 .9 .4 -.3 2.8 1.8 1.1 -2.0 -2.8 -6.3 -1.1 29 30 Security credit....................... .9 .5 * .6 -5.3 3.7 - . 5 -.7 1.3 2.3 4. 1 -7.5 9.0 30 31 Taxes payable.............................. . 1 . 1 * . 1 . I .4 -.3 .2 .2 -.9 .1 31 32 Miscellaneous liabilities.............. 1.7 2.5 3. 1 2.6 2.8 4.2 1.7 3.9 1.7 2.6 2.8 4.6 4.6 3.8 32 33 Discrepancy.................................... -.2 -.3 -.2 -.7 -.7 -1.2 ♦ -.9 -.5 -1.2 -.4 .5 -.2 -.5 33 (Ll) Savings and loan associations 1 Net acquis, of financial assets.......... 11.5 14.0 11.8 10.2 4.3 10.4 9.0 9.0 4.7 1.3 2.2 8.3 10.2 12.5 1 2 Demand deposits and currency 3, .6 . 1 -.5 .5 -.2 -.6 -.4 -1.0 —. 1 . 1 . 1 -.5 2 3 Cr. mkt. instr. *........................... 10.3 13.3 II. 1 9.6 4.3 9.2 8.8 9.6 4.5 1.5 1.8 4.2 9.5 14.0 3 4 U.S. Govt, securities................ .4 1.0 .6 .5 .5 .4 1.1 -.8 .8 1.0 .6 2.2 4.2 4 5 1- to 4-family mortgages.......... 7.4 9.3 8.0 7.7 2.7 7.8 7.6 6.6 3.4 . 1 .6 2.9 4.9 7.5 5 6 7 M o is t e h , e fi r n m an o c r ia tg l a tr g a e n s s . a .. c .. t . i . o .. n .. s .. . . . . . . . . . . . . . . . . . 2. . 6 6 2. . 9 5 2. .7 4 1 . . 6 2 1. . 5 I 1 . . 7 3 . . 8 4 1.9 * 1 . . 7 7 . .9 7 . .5 2 4. . 0 8 2. . 2 6 -1 2 . . 0 3 6 7 8 Net increase in liabilities................. 10.7 13.3 11.1 9.4 3.7 9.7 8.2 8.1 4.1 .8 1.9 1.1 9.8 12.1 8 9 Savings shares............................. 9.4 11.1 10.6 8.5 3.6 9.0 8. 1 5.9 2.6 1.4 4.6 10.7 14.0 12.4 9 10 Mtg. loans in process.................. .4 .5 -.3 -.9 -.2 -. 1 .3 -1.1 -1.7 -1.2 .5 1.4 1.3 10 11 Borrowing from FHLB............... .8 1.3 .5 .7 .9 .4 -.3 2.8 1.8 1.1 -2.0 -2.8 -6.3 -1.1 1 I 12 Memo: FHLB loans less deposits... .8 1.4 .5 .8 .9 .5 ♦ 3.1 1.8 1.3 -2.5 -5.3 -7.1 .3 12 (1.2) Mutual savings banks 1 Net acquis, of financial assets 5........ 3.3 3.6 4.5 4.0 2.8 4.4 3.4 2.8 1.5 3.7 3.0 5.6 6.6 5.7 1 2 U.S. Govt, securities............. - .2 -. 3 - . 5 1 — .7 — .7 - .9 1 - .3 -1.6 -.3 2 3 Corporate bonds......................... -. 1 — .3 - .2 | . 3 1 -.3 .3 . I .4 .4 2.2 2.8 2.8 3 4 1 - to 4-family mortgages, ........... 2. 1 2.6 2.7 2.7 1.6 2.8 2.8 1.8 1.1 1.8 l .7 1.9 1.9 1.9 4 5 Other mortgages.......................... 1.0 1 .3 1.7 1.4 1.1 1.5 1 . 5 1.2 .9 1.2 I. I 1.2 1.2 1.2 5 6 Savings deposits.............................. 3.1 3.3 4.2 3.6 2.6 3.5 3.5 2.7 1.0 3.0 3.5 5.5 6.1 4.9 6 (1.3) Life insurance companies 1 Current surplus,. ............................ 1.1 1.1 1. 1 1.1 1.3 1.1 1.2 1.2 1.3 1.4 I.5 1.5 1.5 1.5 1 2 Net acquis, of financial assets 5....... 6.8 7.0 7.8 8.7 8.3 8.6 9.0 9.4 8.2 1.1 7.7 11.3 8.2 9.1 2 3 Cr. mkt. instr........ 6.5 6.7 7.4 8.2 7.8 8.3 8.4 9.6 7.6 7.3 6.5 10.7 7.6 8.6 3 4 U.S. Govt, securities................ . 1 - .4 -.3 -.4 — .3 -.6 -.7 -.2 -.6 -.7 -. 1 -.4 -. 1 4 5 State and local obligations....... . 1 -.2 -. 1 -.3 -.4 -.6 -.3 -.4 -.6 -.4 -.2 -.2 -. 1 -.4 5 6 Corporate bonds...................... 2. 5 2.8 2.3 2.8 2.2 3.4 3.7 4.5 1.8 2.0 .4 4.0 2.0 5.2 6 7 Corporate stock............. .4 .2 . 5 .7 .2 .8 1.2 . 1 .3 .4 .8 .9 I. 1 7 8 1- to 4-family mortgages............ .6 .9 1.4 1.2 . 5 1.2 1.2 .9 .7 .4 —. I . 5 - .3 - . 8 8 9 Other mortgages.................... 2.1 2.7 3.2 3.7 4.1 3.7 3.8 4.3 4.8 4.4 2.9 4.3 3.2 2.5 9 10 Other loans.............................. .7 . 5 .4 .5 1,5 .5 -. 5 .4 1.3 1.3 3. 1 1.5 2.4 1.1 10 11 Net increase in liabilities................. 6.0 6.4 7.1 7.9 7.2 8.1 1.1 8.2 7.1 7.0 6.4 10.0 6.8 7.5 11 12 Life insurance reserves................ 3.6 4.0 4.2 4.7 4.5 4.9 4.7 4.6 4.5 4.5 4.5 5.1 3.8 4.5 12 13 Pension fund reserves.................. 1.4 1.7 2.0 2.1 2.1 1.9 2.0 2.1 2.1 2.1 2. 1 2.2 2.2 2.2 13 14 Other........................................... 1.0 .7 .8 1.2 .4 1.2 1.0 1.5 .5 . I -.4 2.6 1.4 .8 14 For notes see p. A-65.9. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.8 FLOW OF FUNDS □ FEBRUARY 1968 4. SECTOR STATEMENTS OF SOURCES AND USES OF FUNDS—Continued (In billions of dollars) 1965 1966 1967 Category 1962 1963 1964 1965 1966 III IV I 11 111 IV 1 II (1.4) Noninsured pension plans 1 Net acquis, of financial assets 5........ 4.0 4.4 4.9 4.9 6.2 5.0 5.2 6.1 4.2 6.5 7.9 4.9 6.0 7.2 1 2 Credit mkt. instr6....................... 4.0 4.3 4.8 4.9 6.2 4.9 4.4 6. 1 4.8 6.8 7.1 4.9 5.8 6.8 2 3 U.S. Govt, securities................ .2 .4 .4 -.3 .2 -.5 .2 .4 -.8 .7 .4 -1.9 -.1 * 3 4 Corporate bonds...................... 1.2 1.5 1.6 1.5 1.9 1.6 .8 2.5 1.4 1.8 1.9 1.7 .4 1.6 4 5 Corporate stock....................... 2.2 2.2 2.2 3.1 3.7 3.3 3.2 2.8 4.0 3.8 4.1 4.8 5.6 5.0 5 (1.5) Other insurance companies 1 Net acquis, of financial assets 5....... 1.4 1.4 1.1 1.8 1.9 2.1 l.S 2.0 1.7 1.9 1.8 2.0 2.1 2.3 I 2 Demand deposits and currency... * -. 1 -. 1 -.1 2 3 Credit mkt. instr.6....................... 1.2 1.3 1.0 1.7 1.6 2.0 1.4 1.8 1.4 1.6 1.6 1.7 1.8 2.1 3 4 U.S. Govt, securities................ . 1 .2 . 1 -.4 .2 - . 1 -.4 -.2 -.4 -.5 -1.3 -.6 -.3 4 5 State and local obligations....... .7 .8 .4 .4 1.4 .3 .7 1. 1 1.5 1.6 1.3 1.2 1. 1 1.0 5 6 Corporate bonds...................... . 1 . 1 .3 1.1 . 1 1.3 .8 1.0 -.3 -. 1 1.0 .7 .7 6 7 Corporate stock..................... .2 .2 .2 .2 .5 .2 - . 1 .1 .5 .6 .7 .8 .7 .7 7 (1.6) Finance companies 1 Net acquis, of financial assets 5........ 2.7 4.0 4.0 5.4 3.2 5.3 5.8 5.9 1.4 .9 4.4 .8 -3.3 3.3 1 2 1- to 4-family mortgages............. .5 .8 .4 .5 - .6 .8 . 1 .3 -.6 -.9 -1.1 .3 1.3 — .2 2 3 Consumer credit.......................... 1.3 1.8 1.8 1.9 1.2 1.8 1.5 1.6 1.3 1.5 .6 .3 .3 -.2 3 4 Other loans.................................. .8 1.6 1.8 2.7 2.3 2.5 4. 1 3.9 .4 . 1 4.7 -. 1 -5. 1 3.4 4 5 Net increase in liabilities.................. 2.6 4.0 4.0 5.1 2.7 5.1 5.8 5.4 1.3 .1 3.8 1.1 -3.2 3.7 5 6 Corporate bonds.......................... .3 1.4 2. 1 1.9 .8 1.0 3.0 1.7 .5 1.2 -.4 1.7 -.3 1.0 6 7 Bank loans n.e.c........................... 1.0 1.6 .4 2.2 -1.5 2.8 3.2 .9 -.8 -3.4 -2.7 -3. 5 -3.2 2.1 7 8 Open mkt. paper.......................... 1.2 1.0 1.5 1.0 3.4 1.3 -.4 2.8 1.6 2.2 6.9 2.9 .3 .6 8 (1.7) Security brokers and dealers 1 Net acquis, of financial assets.......... .9 .6 .2 .1 .7 -5.1 3.9 -.3 -.6 1.4 2.4 4.2 -7.5 9.1 1 2 U.S. Govt, securities.................... .7 -1.3 .7 -.3 .7 -5.1 1.5 1.8 -1.0 2.1 -.3 4.2 -6.4 3.2 2 3 Other securities............................ .4 .2 1 . 1 .4 * -2.8 -.3 1.0 2.6 -1.9 -2.9 2.4 3 4 Security credit............................. -.2 1.5 -.5 .5 - .2 -.5 2.3 .6 .6 -1.8 - . 1 1.8 1.7 3.3 4 5 Net incr. in Hab.—Security credit... .9 .5 .1 .6 -5.3 3.7 -.5 -.7 1.3 2.3 4.1 -7.5 9.0 5 6 From banks................................. 1.1 .2 .2 -.3 .6 -5.9 3.0 -1. 1 .2 2.1 1.0 2.2 -8.0 8.3 6 7 From agencies of fgn. banks....... -.2 .4 -.3 .3 - .6 -. 1 -.2 -.3 .8 -.3 7 8 Customer credit balances............. * * * .5 * .3 1.3 .7 -.7 -.6 .5 2.2 .5 .7 8 (1.8) Open-end investment companies -.4 -.4 -.8 -1.0 -1.3 -.9 -1.7 -1.7 -.7 -.9 -2.0 -1.4 -.7 -1.2 1 2 Net acquis, of financial assets5... 1.5 .8 1.1 2.0 2.5 2.9 2.0 3.9 2.2 2.0 1.8 . 2.5 1.6 2.4 2 3 Credit mkt. instr....................... 1.2 .8 1.1 1.6 1.9 2.6 1.7 4.0 1.3 .3 2.1 2.8 .9 2.6 3 4 Corporate stock................... 1.1 .6 .7 1.2 .9 1.3 1.8 2.2 .6 -.6 1.6 3.2 2.2 3.0 4 5 Net stock issues?............... 1.9 1.2 1.9 3.0 3,8 3,7 3,8 5.6 2.9 2.9 3.8 3.9 2.3 3.6 5 (J) Rest of the world 1 Net purch. of goods and serv. (2-3).. 5.1 5.9 8.5 6.9 5.1 7.4 6.1 6.1 5.4 4.6 4.3 5.4 5.3 5.5 1 2 Purch. of goods and services 1... 30.3 32.3 37.1 39.1 43.0 40.3 40.5 42.0 42.5 43.7 44.0 45.4 45.4 45.9 2 3 Sales of goods and services 1....... 25.1 26.4 28.6 32.2 37.9 32.9 34.4 36.0 37.1 39.0 39.7 40.0 40.2 40.4 3 4 Net unilateral receipts from Govt. 1. 2.7 2.8 2.8 2.8 2.9 2.9 2.6 3.4 2.9 2.8 2.5 2.9 3.4 3.5 4 5 Current surplus (4-1) 2.................. -2.5 -3.1 -5.7 -4.1 -2.2 -4.5 -3.4 -2.7 -2.5 -1.8 -1.8 -2.5 -1.9 -2.0 5 6 Net financial investment (7-14)........ -1.3 -2.8 -4.7 -3.7 -1.8 -3.4 -3.1 -1.8 -1.6 -2.8 -1.0 -1.5 .4 -2.5 6 7 Net acquis, offinan. assets.......... 2.6 3.4 3.4 2.1 3.9 1.4 1.0 2.0 6.2 2.6 4.7 2.7 8.3 8.1 7 8 Gold......................................... .9 .5 .1 1.7 . .6 .5 .5 .3 .8 .7 .5 .2 . 1 .4 8 9 U.S. dem. dep. and currency,.. .1 . 1 .5 .3 -.3 .7 .3 . 1 1.2 -1.8 -.6 -1.6 2.4 1.0 9 10 Time deposits........................... .6 1.0 1.4 .6 .8 .2 .5 -.2 2.0 .6 1.0 1.2 2.4 1.0 10 11 U.S. Govt, securities................ 1.3 .6 .5 -. 1 -2.6 -1.7 2.2 -2.3 -1.6 -4.4 -2.1 3.3 1.8 -1.4 11 12 Other credit market instr......... .2 .3 .1 1.2 -.9 .5 .9 2.9 .4 .4 .8 1.6 2.3 12 13 Misc. financial assets............... -.4 1.1 .8 -.4 4.2 2.6 -3.1 3.3 .8 7.2 5.5 -1.3 -.2 4.7 13 14 Net increase in liabilities......... 3.9 6.2 8.2 5.8 5.7 4.8 4.1 3.8 7.8 5.4 5.7 4.2 7.9 10.6 14 15 Official U.S. foreign exchange 3 -.6 . 1 .4 .3 -.6 -1.4 .6 .4 .5 -3.9 1.7 1.9 15 16 Securities................................... 1.0 1.1 .7 .8 .5 .8 .8 1.4 .2 * .2 1.0 1.0 1.6 16 17 Loans 4..................................... 1.1 2.2 3.7 1.9 1.0 1 1.9 1.3 2.3 - .4 1.0 4.5 2.7 2. 1 17 18 Miscellaneous 5......................... 2.5 2.8 3.9 2.6 4.1 3.7 2.0 2.5 4.6 5.4 4. 1 2.5 2.3 5.0 18 19 Discrepancy (5-6) 6.......................... -1.2 -.4 -.9 -.4 -.4 -1.0 -.3 -.9 -.8 1.0 -.8 -1.1 -2.3 .5 19 U.S. gold and fgn. exchg. held by: 20 Monetary autn.......................... -.8 -.4 -1.3 -.3 1.3 -1.4 -2. 1 .2 .4 . 1 -3.1 1.7 .4 20 21 U.S. Treasury.............................. -.7 ♦ -.2 . 1 -.2 -1.5 .4 .4 -.5 -.7 -. 1 -1.0 * 1.1 21 For notes see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.9 Notes to Table 4 (A) Households 1 Includes nonprofit organizations serving individuals. • Line 9 plus capital consumption on owner-occupied houses and nonprofit plant and equipment. 2 Imputed saving associated with growth of government life 5 Includes net free balances with security brokers and miscel­ insurance and retirement reserves. From Tables 4(E), line 13, laneous assets not shown separately. and 4(F), line 6. ” Policy loans, hypothecated deposits, and U.S. Govt, loans 3 Capital-gains dividends from open-end investments cos. to nonprofit organizations. (B, C, D) Business 1 Sum of Tables 4(C) and 4(D); for detail see below. 8 Loans from U.S. Govt, and commercial loans from finance 2 Profits and noncorporate income as defined in national cos. income. Excludes imputed rental income of owner-occupied 11 Includes earnings retained in business; see note 7 above. houses, included in Table 4(A). 10 Excludes corporations in Tables 4(C), (G), (H), and (I). 3 Change in work in process. * After inventory valuation adjustment. u Includes branch profits paid to foreign parents less branch 5 Excludes C.C.C.-guaranteed loans, treated as Govt, borrow­ profits received from abroad. ing and included in Table 4(E), line 30. 12 Direct investments abroad, foreign currency holdings, and 0 Includes corporate farms. unallocated current assets. 7 Noncorporate net income is treated as payment in full to proprietors in the household sector. Gross saving consists of 13 Mainly commercial paper and commercial loans from capital consumption allowances plus corporate farm retained finance companies. profits. 11 Includes State and local profit taxes. (E, F) Govts. 1 Lines 1 through 12 are derived from national-income data, 5 Govt, life insurance, employee retirement, and R.R. retire­ while lines 15 through 31 are based on data behind Treasury ment programs. Excludes social security, which is treated as cash budget. Line 21 is a link between the two accounting sys­ nonfinancial operation. See Table 4(A), line 5. tems on treatment of corporate taxes, and the discrepancy 3 Mainly nonconvertible foreign currencies and official foreign (line 32) represents differences on other matters. exchange position of Treasury. Net cash borrowing in Treasury cash budget corresponds 7 Public debt held by public and Federal Reserve, plus non­ closely to line 25 less accrual of interest on savings bonds and guaranteed issues of Govt, agencies. Includes interest accruals Treasury bills. Cash surplus is closely indicated by line 17 less on savings bonds and Treasury bills; excludes special notes to net cash borrowing. Lines 18, 22, 30, and 31 are in cash outgo IMF. Loan participations consist of holdings by the domestic in cash budget except for small amounts in receipts. Lines 13 public of C.C.C., FNMA, Export-Import Bank, and all other and 24 are imputations reflected in neither national income nor certificates. In Table 3 they are grouped with nonguaranteed cash budget. issues. Net movements in inventory under C.C.C. guarantee are 2 OASI, disability insurance, and unemployment programs. included in line 11. Loans and mortgages securing other Ioan Line 5 includes U.S. Govt, employment taxes; line 6, U.S. participations are included in U.S. Govt, financial assets. Govt, benefit payments to households. 8 E and H bonds held by households. 3 Veterans’ life insurance and Govt, employee and R.R. re­ tirement funds. Line 7 excludes Govt, contributions to these 2 Marketable issues due in less than 1 year plus part of those funds. due in less than 2 years. 4 Transfers other than lines 6 and 8, grants-in-aid to State ’« Includes employee retirement funds. and local govts., subsidies less current surplus of Govt, enter­ 11 Net of current surplus of govt, enterprises. prises. 12 Corporate bonds, mortgages, and tax receivables. (G, H) Banking 1 Federal Reserve System plus those Treasury accounts in­ Reported bank data, as on page A-18, are frequently for last cluded in “Member Bank Reserves, Federal Reserve Bank Wednesday of month or other reporting date. Excludes banks in Credit, and Related Items.” Excludes Exchange Stabilization U.S, possessions. Fund, which is in U.S. Govt, accounts. " Deposits with F.R. Banks; vault cash in reserves is in line 4. 2 Includes F.R. holdings of foreign currencies, which are net 7 Net change in par value of holdings. in other F.R. accounts in table mentioned in note 1. 8 Includes consumer loans secured by hypothecated deposits 3 Includes vault cash of nonmember banks. through 11/1966, not show separately. 4 Includes deposits of international organizations other than 0 Includes deposits held outside Treasury. IMF; IMF deposits are net in line 3. 10 Bank and nonbank. n Based on balance sheet estimates for last day of quarter. 11 Net of F.R. float, shown separately in line 29. (I) Nonbank finance 1 In addition to types shown, includes credit unions, agencies laneous, line 7. of foreign banks, and banks in possessions. 4 Includes consumer credit, not shown separately. 2 Lines 10, 11 of 1.1; lines 6, 7, and 8 of 1.6; and line 5 8 Includes cash and other assets, not shown separately. of L8- . 0 Includes mortgages, not shown separately. 3 Excludes deposits at FHLB, which are included in Miscel­ 7 Includes retained capital-gains dividends. (J) Rest of the world 1 Lines 2, 3, and 4 are exports, imports, and transfers to 4 Bank Ioans, acceptances, loans from U.S. Govt., and secu­ foreigners in income and product accounts. rity credit. 2 Net foreign investment in national income accounts with opposite sign. 8 Direct investment abroad, foreign currencies held by other 3 Official foreign currency holdings and net IMF position of than in line 15, subscriptions to international organizations U.S. IMF position consists of U.S. capital subscription less except IMF, and unidentified liabilities. IMF holdings of special U.S. Govt, notes, deposits with Federal 3 Errors and omissions in U.S. balance of payments state­ Reserve, and letters of credit. ment. Note.—Quarterly data are seasonally adjusted totals at an­ nual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1966 (Amounts outstanding in billions of dollars) (A) AU sectors Private domestic nonfinancial sectors Financial sectors Rest of U.S. the All Sector H h o o u ld s s e­ B ne u s s s i­ an g S d o t v a lo t ts e c . al Total Govt. Total Mo au n t e h ta . ry C ba o n m k l s . N fi o n n a b n a c n e k world sectors Discrepancy Transaction category A L A L A L A L A L A L A L A L A L A L A L 1 Total financial assets..................................... 1414.1 339.5 ........ 91.2........ 1844.7 ........ 97.0......... 997.7 67.3........ 356.9 ........ 573,5 ........ 84.7........ 3024.0 ......... ............... 1 2 Total liabilities.............................................. ........ 363.6 ......... 504.7 ........ 151.8 ........ 1020.1 .. 318.8 . 921.5 67.3 . 332 2 . . 522.0 106 1 2260 5 3 Gold stock................................................. .1 .. 13.2 ... 13.2 .... 29 9 43 2 4 Official U.S. fgn. exch............................... 4 ... 9 ... .9 . 1 3 .................. 4 5 IMF position1......................................... 4.1 13.7 ........ 1 ........ il 3 ..................3 .................. 5 6 Treasury currency..................................... ........ 4.0 6.2........ 6.2........ 6.2 4.0 -2.2.... 6 7 Demand dep. and currency....................... ........ 185 7 ...... 41 2 . 144 5 170.9 185.7 8 Pvt. domestic........-.......................... 88.6........ 47.2........ 11.7........ 147.5 ........ 13.5 176.3 . 39 2 ... 137 1 13 5 .. 161.1 176.3 15.3... 8 9 U.S. Govt............................................... 7 0 6 6 i 6 . 5 0 7.0 6.6 -.4... 9 10 Foreign.................................................. ........ 2 8 ........ 4 2 4 9 8 2 8 .................. 10 11 Time and savings accounts....................... 297.5 ........ 329.5 ........ .4 338.3 4....... 338 3 .................. 11 12 At coml. banks...................................... 118.7 ........ 18.6........ 13.5........ 150 7 • • • 2 .2 159.3 159 3 2 .. 8 2 .................. 12 13 At svgs. instit......................................... 178.8 ........ 178.8 ........ .3 179.0 .3 179.0 179 0 .................. 13 14 Life insur. reserves.................................... 110.8 ........ 110.8 ........ ........ 7.1 ........ 103.7 .. 103 7 110 8 .................. 14 15 Pension fund reserves............................... 159.2 ........ ........ 37.3 159.2 37.3 . 21 0 ........ 100 9 100 9 159 2 15 16 Consol, bank items2................................ 27.9 27.9 2.7 25.2 25.2 2.7 27.9 27.9 .................. 16 17 Credit mkt. instr........................................ 738.2 348.5 50.1 306.4 63.8 III.5 852.0 766.4 60.3 278.7 895.4 83.4 44.5........ 315.3 1.7 535.6 81.7 27.2 39.31834.9 1167.7 17 18 U.S. Govt, securities 3........................... 85.7........ 15.3......... 25.7........ 126.6 ........ ........ 278 7 141 4 44 3 .... 63.4 33 7 10 7 278 7 18 19 State and local oblig.............................. 40.6........ 4.4........ 4.5 107.2 49.5 107.2 57.7........ 41.0........ 16 7........ ■ 107 2 19 20 Corp, and fgn. bonds............................ 5.7........ ........ 108.0 29.2........ 34.9 108.0 99.2 18.6 ...........9.. ......1..7 98.4 16.9 2.0 9.5 ........ 136.1 .................. 20 21 Corp, stocks4......................................... 596.3 ........ 91.7 34.3 91.7 34.3 12.6 n.a. 700.6 34.3 21 22 1-4 family mortgages......................... 9.9 216.3 4.3........ 14.2 222.8 8 8........ 201.0 1.3 32.5........ 168.5 1.3 224 1 .................. 22 23 Other mortgages.................................... ........ 14.8........ 80.5 ........ 95.2 69 .... 88 3 ... 21 5........ 66 8 .. 95 2 .................. 23 24 Consumer credit.................................... ........ 94.8 21.4........ 21.4 94.8 73 3 ........ 38.9 .... 34 5 ....... 94 8 .................. 24 25 Bank loans n.e.c..................................... ...... 11 6 ........ 82 5 . 94 1 112.1 10.6 112 1 . 10 6 ........ 7.3 ........ 112.1 .................. 25 26 Other loans................................... ...... 11 0 9.0 29.0 4 4 9.0 44.3 30.7 18.6 2 . 5 2 .. 25.4 18.6 1.9 22.4 86.2 85.3 -.8.... 26 27 Open market paper............................ 9.0 2.7 9.0 2.7 23.9 11.7 .2 .... 5 2... .6 11.7 1.9 2.5 16 9 .................. 27 28 Federal loans..................................... ........ 1.2........ 11.5 ........ 4.4 .... 17.0 43.8........ ........ 6 9 6 9 19 9 43 8 .................. 28 29 Security credit.......................................... 1.6 9.0 1.6 9.0 15.8 8.5 9 0 6.8 8.5 .2 .1 17 6 • 29 30 To brkrs. and dealers............................ 1.6........ 1.6........ 6.7 8.5 5 8... .9 8.5 9 8 5 30 31 To others............................................... ........ 9 0 9 0 9 1.. 3 2... 5 9.. 1 9 1 31 32 Taxes payable........................................... ........ 20.6 2.3........ 2.3 20.6 20.1........ ........ 1.8 * 7 1 1 22.4 22.4 .................. 32 33 Trade credit5............................................ ........ 2.55155.0 117.4 ........ 3 0 155.0 122.9 4.4 4.5 2 9... 2 9.. 162.2 127.5 -34.S.. 33 34 Mise, financial trans.................................. 18.2 3.7 68.7 60.2 ................... 86.9 63.9 4.1 3.5 21.6 71.4 ..................8 7.4 23.3 14.3 47.2 16.3 59.1 128.9 197.8 68.9.... 34 For notes see following page. A-65.10 FLOW OF FUNDS □ FEBRUARY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

5. FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1966—Continued (Amounts outstanding in billions of dollars) (B) Nonbank financial sector Sector Total M s b av a u n i t n u k g a s s l a S n a a d s v s i n l n o s g a . s n u C n r i e o d n i s t i a n L n s i c u fe e r ­ N i a n o n s n c u l e i r f ­ e p P f e r u n i n v s d i a o s t n e Fi c n o a s n . ce o A f b g f a e o n n re c k i i s g es n B p a s o n i s o k s n e s s s i ­ n In m c v o e e s n . s t t ­ an S b d e r c o d u k e r e a i r l t e s y r s Transaction category A L A L A L A L A L A L A L A L A L A L A L A L 2 1 T To o t t a a l l l f i i a n b an il c it i i a e l s a .. s .. s . e .. t . s . . .. . . . . .. .. . . .. .. . . . . .. .. . . . . .. .. . . . . .. .. . . . . .. . . . . . . .. . . . . .. . . . . .. .. . . . .. 5 . 7 .. 3 .. . . 5 .. 5 . 2 .. 2 .. . . 0 .. 6 .. 1 .. . 0... 5 .. 6 .. .1 . .. 1 .. 3 . 4 .. . . 0 .. 1 . 2 .. 4 .. . . 9 ....... 1 . 0.0 1 . 0 .. . . 0 . .. 1 .. 6 .. 1 .. .7 .. 1 .. 4 . 9 .. . . 3 ... 4 ... 0 .. . 0... 2 .. 3 .0 .... < .. 1 .. . 5... 7 .. 1 .. . . 5 ........ 4 3 4 8 .8 .9 ... . . . . . . . . . 3. ... .8 ..... 3 .. . . 8 ..... 1 .. . . 7 ..... 1 .. . . 6 ........ 3 3 4 4 .3 .3 ... . . . . . 1 . .. 0 .. . 6..... 8 .. . . 6 2 1 3 Demand dep. and currency...................... 4 Pvt. domestic........................................ 13.5........ .8........ 2.3........ .6........ 1.5........ 13.. .9.......2..7........ .8.........2........ 1.5.......1..0........ 4 5 Time and savings accounts...................... .4 179.0 .2........ .3........ 6 At coml. banks..................................... .2........ .2........ 7 At svgs. instit........................................ .3 179.0 ........ 5570 - 114.0 .3 10.0 — 8 Life insur. reserves................................... ........ 103.7 ........ 103.7 9 Pension fund reserves............................... ........ 100.9 ........ 29 4 10 Credit mkt. instr....................................... 535.6 81.7 59.1........ 124.6 S.7 9.2........ 154.0 ........ 35.8........ 70.6........ 42.1 38.7 2.2........ 1.6........ 32.8 34.3 3.7........ 10 1 1 1 2 S U t . a S t . e G an o d v t, l o s c e a c l u o ri b t l ie ig s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3 6 . . 7 7 . . . . . . . . . . . . . . . . 5 . . 3 7. . . . . . . . . . . . . . . . 8 7.. 4 3 8 i........ 12.7........ 3 7 19........ 9 1.4.......1.. 5 7 ........ 1 11 2 1 1 3 4 C C o o r r p p , , s a t n o d c k fg s4 n . . . . b .. o .. n .. d .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 8 1 . . 4 7 1 3 6 4 . . 9 3 3 1 . . 2 5 . . . . . . . . . . . . . . . . 6 8 3 . 8 3........ 1 3 3 . 8 6........ 2 38 4 . 5 6........ . 16 9 28.4 34.3 ........ 7 15 1-4 family mortgages............................ 168.5 1.3 31.7........ 97.8 1.3 .6........ 30 4 ........ 3.8........ 3.9........ 3 15 16 Other mortgages................................... 66.8........ 15.7........ 16.7........ 34.2........ .2........ 1 16 17 Consumer credit.................................... 34.5........ .4........ 1.5........ 8.5........ 24 0 -. - 1 7 18 Bank loans n.e.c.................................... ........ 10.6 ........ 10.1 18 19 Other loans........................................... 25.4 18.6 .6........ ........ 6 9 9 4 14.2 11.7 3 s 19 20 Open market paper........................... .6 11.7 3 11 7 3 on 21 Federal loans..................................... ........ 6.9 ........ 6.9 22 Security credit.......................................... 6.8 8.5 9 5.9 8.5 22 23 To brkrs. and dealers.......................... .9 8.5 9 8 5 23 24 To others.............................................. 5.9........ 5.9 ... ’ 24 2 2 5 6 T T a ra x d e e s p cr a e y d a i b t. l . e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 2 .. . . 9 ..... 1 .. . . 1 ♦ ........ 6 2.9........ 1 9 1 9 9 S g 27 Mise, financial trans................................. 14.3 47.2 1.0 1.1 7.1 2.1 6.2 15.6 . 22 9 3 8 1 6 97 1 IMF position liabilities of the U.S. Govt. (IMF notes) and monetary authorities (deposits of IMF at 4 Assets shown at market value; nonbank finance liability is redemption value of shares of open-end F.R. Bank of New York) are netted against assets in determining both the sector and transaction totals. investment companies. No specific liability is attributed to issuers of stocks other than open-end invest­ 2 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. ment companies for amounts outstanding. ‘ loans to banks, F.R. float, and stock at F.R. banks. s Business asset is corporate only. Noncorporate trade credit is deducted in liability total to conform 3 Includes savings bonds, other nonmarketable debt held by the public, nonguaranteed agency issues, to quarterly flow tables. and loan participation certificates sold through FNMA. Postal savings system deposits are included in Note.—For description of sectors and transaction categories, see Aug. 1959 Bulletin, pp. 846-57. line 34. Details may not add to totals because of rounding. FEBRUARY 1968 □ FLOW OF FUNDS A-65. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.12 FLOW OF FUNDS □ FEBRUARY 1968 6. STRUCTURE AND FINANCING OF TOTAL DEBT" (Amounts outstanding at end of year; in billions of dollars) 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 Total credit market debt owed 1 By nonfinancial sectors 1............... 488.3 512.1 547.8 574.9 603.7 640.4 689.1 722.0 765.2 821.3 878.7 945.21016.8 1084.3 1 2 Loans and short-term secur.... 165.6 151,8 168.3 185.2 199.7 200.3 220.1 234,7 250.7 266.2 285.1 311.5 344.5 370.3 2 3 Long-term securities and mtgs.. 322.7 360.3 379.4 389.6 403.9 440.1 469.0 487.3 514.5 555.1 593.6 633.7 672.3 714.0 3 By Sector 4 U S. Government...................... . 229.5 231.6 231.6 226.0 225.2 234 0 242.9 241.0 248.7 256.6 261,6 268.7 272.3 278,7 4 5 Short-term mkt. securities........... 79,2 64.2 68.0 74.1 81 1 78 3 83,6 86. 8 95.6 96.3 97.7 101,7 105.2 107,4 5 6 Other securities2.......................... 148. 1 165 I 162.6 151 I 143 7 154 9 159.2 153 6 152 1 158.9 162 8 165 0 164.7 167,6 6 7 Loan participations............. 2.3 2.3 1.0 . 8 3 8 .2 .6 .9 1.4 1.2 2.0 2.4 3.7 7 8 Foreign.................................... 15.3 15.8 16.2 16.9 18.2 19.9 20.5 22.4 24.6 27.1 30.5 35,3 38.1 39.3 8 9 Loans.......................................... 12 9 13 1 13.5 14.0 14 9 16 0 16 2 17 5 19 2 20. 8 23,1 27.1 29.0 29,7 9 10 Securities...................................... 2.4 2.7 2.7 2.9 3 3 3 9 4.3 4.9 5 4 6.3 7.3 8.2 9.1 9.5 10 11 Pvt. domestic nonfin. sectors........... 243.5 264.6 300.0 332,0 360.3 386.4 425.7 458,6 491 9 537.5 586.6 641.2 706.4 766.4 11 12 Loans........................................... 73.5 74.4 86.8 97. 1 103.7 106.0 120.3 130,5 135.9 149.1 164.3 182,6 210.3 233.2 12 13 Consumer credit........................ 31.4 32.5 38.8 42.3 45.0 45.1 51.5 56.0 57.7 63.2 70.5 78.4 87.9 94.8 13 14 Bank loans n.e.c........................ 29.8 29.8 35.1 41.1 42.9 43.9 49.6 52.5 54.6 59.4 64.6 70.8 84.3 94.1 14 15 Other loans............................ 12.3 12.2 12.9 13.7 15. 8 17.0 19.2 22.0 23.5 26.5 29.2 33.4 38.1 44.3 15 16 Securities and mortgages1......... 170.0 190.2 213.2 234.9 256.6 280.4 305.3 328.1 356.0 388.4 422,3 458.5 496, 1 533.2 16 17 State and local obligations........ 34.2 39. 7 44.8 49. 4 53.9 58.8 63. 7 68. 7 75.5 82.5 88.0 94.6 101.2 J 07.2 17 18 Corporate bonds....................... 47.0 50.4 53.3 56.9 63.2 68.9 71.9 75.3 80.0 84.5 88.4 92.4 97.8 108,0 18 19 1~ to 4-family mortgages........... 65.6 74.9 87.3 98.1 106.8 116.5 129.6 140 1 151.5 164.5 179.7 195,3 211.5 222.8 19 20 Other mortgages.................... . 23.3 25.2 27.8 30.5 32. 7 36.2 40.2 44.0 49.1 57.0 66.2 76.2 85.6 95.2 20 21 Assets financing total debt (— 1). . . . 488.3 512.1 547.8 574.9 603.7 640.4 689.1 722.0 765.2 821.3 878.7 945.2 1016.8 1084.3 21 22 U S Govt, cash bat..................... 5 6 5.9 5.2 5.3 5.4 5.6 6. 2 7 1 7. 1 8.4 8.0 8.2 7.2 6.8 22 23 U.S. Govt, loans......................... 23.0 22.7 24.1 25.2 27.6 29. 3 33,2 35 4 38.0 41.8 44.3 48. 1 52.7 60,3 23 24 Foreign funds............................ ■ 8.8 9.8 10,5 11.7 1 2.3 13.3 15 4 17.0 18.5 20.6 22,4 25.2 26.1 25.7 24 25 Pvt. insur. & pension reserves L .. 72.4 77.2 82.7 88.7 94.9 100.5 107.1 112.9 118.0 124.8 132.0 140,2 147.5 157,3 25 26 Sources n.e.c................................. 20.7 24.1 28.1 32.1 33.9 40.7 46,3 53.0 59.3 63.3 68,5 75.5 84.4 93,7 26 27 Pvt. domestic nonfin. sectors1.... 357,9 372,3 397.2 412.0 429.5 451.1 481 .0 496.6 524.3 562.4 603.3 648.0 698.8 740.6 27 28 Liquid assets............................ 286.0 297,6 316.2 326.6 338,8 356.1 373,2 382 5 407, 1 438.5 476.0 508.9 552.5 575.2 28 29 Deposits............................... 214.7 228.2 239.2 250.0 261.0 281.7 293.0 306.7 330.7 360.8 395.1 430.3 470.9 492.3 29 30 Demand dep. and currency. 124.3 128.0 130.4 131.6 130.2 135.1 135.4 134.1 137.9 139.9 145.7 152.1 160.0 162.8 30 31 Time and svgs. accounts... 90.4 100.2 108.9 118.4 130.8 146.5 157.5 172.6 192.8 220.8 249.4 278.2 310.9 329.5 31 32 A t commercial banks.... 41.7 44.9 46.4 48.7 54.3 61.2 64.0 69.5 78.5 93.5 106.9 120.0 139.5 150.7 32 33 At savings institutions.. . 48.7 55.3 62.4 69.7 76.6 85.3 93.5 103.1 114.3 127.3 142.5 158.3 171.5 178.8 33 34 Short-term U.S. Govt, sec.. . 71.3 69.3 77.0 76.7 77.8 74,5 80.2 75.8 76,4 71.8 80,9 78.6 81.6 82.9 34 35 Other U.S. Govt, securities.... 28.6 28,7 28.6 26.6 25.4 26.1 33.5 32.9 31.5 31 .9 33.6 36.8 37.0 43.7 35 36 Pvt. credit mkt. debt instr.1.... 45.6 49.2 56.2 62.6 68.7 73.2 78,8 85,5 91.2 97.3 101.1 109.5 116.8 129.1 36 37 Less net security debt.............. 2.3 3.1 3.9 3.9 3.5 4.4 4.5 4.3 5.5 5.4 7.3 7.2 7.5 7.4 37 1 Corporate stocks are excluded from this table as both liabilities and 2 Includes agency issues not guaranteed by the U.S. Government. assets. -' Net of market value of corporate stock holdings. 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 I. Demand deposits and currency 1 Net banking system liability............. 137.5 142.0 144.2 146.0 145.3 151.1 152.0 152.2 157.8 162.3 168,0 175.5 183.1 185.7 1 2 Monetary authorities............... 29.8 29.9 30.0 30, I 30.1 30.3 30.8 30.6 31 .4 32.3 34.2 36.8 38.8 41 .2 2 3 U.S. Govt, cash and dep.......... 1.1 1.4 1 .2 1.2 1.2 10 .9 .9 .9 1.0 1.2 1.4 1.4 1.6 3 4 Foreign deposits....................... .4 .5 .4 .3 .4 .3 .4 .2 .3 .3 .2 .3 .2 .4 4 5 Currency.................... 28,3 28.0 28.5 28.5 28.5 28.9 29.6 29 30.2 31,0 33.7 35J 37.2 39.2 5 6 Commercial banks. ..................... 107.6 112.1 1 14.2 115.9 1 15.2 120.8 121.2 121.6 126.3 130.0 133.9 138.7 144.3 144.5 6 7 U.S. Government..................... 4,1 4.2 3.7 3.7 3.9 4.3 5.1 5.9 5.9 7.2 6.5 6.5 5.5 5.0 7 8 Foreign................................... .3 .4 .4 .7 .9 .9 .9 1.1 1.8 1.9 2,2 2.7 2.8 2.4 8 9 Other........................................ 103.2 107.6 110.1 111.5 110.4 115.6 115.3 114.5 118,6 121.0 125,1 129.5 135.9 137.1 9 10 Total assets..................................... 137.5 142.0 144.2 146.0 145.3 151.1 152.0 152.2 157.8 162.3 168.0 175.5 183.1 185.7 10 11 U.S. Government........................ 5.3 5.5 4.9 4.9 5.1 5.3 5.9 6.8 6.8 8.1 7.8 7.9 7.0 6.6 11 12 Private money supply................ 132,2 136.4 139.4 141.1 140.2 145.8 146.1 145.4 150.9 154.2 160.3 167.5 176.2 179,1 12 13 Domestic sectors....................... 131.4 135.6 138.6 140.1 138.9 144.6 144.9 144.0 148,9 152,0 157.8 164.6 173.1 176,3 13 14 Households........................... 61.8 63.2 63.7 64.7 63.5 65.2 66.7 65.9 66.6 69.4 73,5 79.5 86.7 88.6 14 15 Nonfinancial business....... 45.6 48.1 49.4 49.7 50.4 53.4 51.1 50. 1 51.8 50,8 50.0 48.2 46.5 47.2 15 16 Corporate......................... 28.9 31 .0 32.0 32.2 32.1 33,6 32.6 32.1 33,8 32.8 32.0 29.8 28.0 28.7 16 17 Nonfarm noncorporate.... 10.4 10.9 11.2 11.5 12.4 13.6 12.7 12.4 12.5 12,5 12.5 12.5 12.5 12.5 17 18 Farm................................. 7.0 6.9 6.9 6.7 6.6 6.9 6.2 5.8 5.8 5.9 5.7 5.9 6.0 6.0 18 19 State and local govts............. 8.0 7.6 7.4 7.0 7.2 7.1 7.2 6.1 6.4 7.3 9.7 11.1 10.9 11.7 19 20 Financial sectors................... 7.2 7.6 8.2 8.4 8.8 9.5 9.5 10.0 11.0 12.0 12,2 12.5 13.1 13.5 20 21 Mail float................. 8.9 9.1 9.9 10.2 9.1 9. 4 10,4 12.1 13.1 12,5 12.4 13,3 15.8 15.3 21 22 Rest of the world...................... .8 .9 .8 1.0 1.2 1.2 1.2 1.3 2.1 2.2 2.4 2.9 3.0 2.8 22 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.13 7. SUMMARY OF PRINCIPAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 IL Time and savings accounts 1 Total held........................................ 94.1 104.6 113.0 122.4 134.8 151.6 161.5 176.8 197.5 226.2 255.7 286.1 319.2 338.3 1 2 At commercial banks.................. 45.1 48.9 50.3 52.3 57.8 65.8 67.5 73.3 82.7 98.3 112.6 127.2 147.2 159.3 2 3 Corporate business.................. .9 1.1 1.0 1.0 1.0 1.9 1 .5 2.8 4.6 8.3 12.2 15.4 19.2 18.6 3 4 State and local government.. .. 2.0 2.4 2.4 2.4 2.8 3.6 3.2 4.6 5.5 6.5 8.1 9.8 12.2 13.5 4 5 U.S. Government.................... .3 .4 .4 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 .2 5 6 Mut. svgs. banks...................... ,2 .3 .2 .2 . 1 .2 . 1 .2 .2 . 1 .2 .2 .2 6 7 Foreign.................................... 2,8 3.4 3.2 3.1 3.1 4.0 3.1 3.5 3.8 4.3 5.3 6.7 7.3 8.2 7 8 Households............................. 38.9 41,4 43.1 45.3 50.5 55.8 59.4 62.2 68.4 78.7 86.6 94.8 108.0 118.7 8 9 At savings institutions................. 48.9 55.6 62.8 70.1 77.0 85.9 94.0 103.5 114,8 127.9 143.1 159.0 172.0 179.0 9 Liability: 10 Savings and loan assns......... 22.8 27.3 32.1 37.1 41 .9 48.0 54.6 62.1 70.9 80.2 91.3 101.9 110.4 114.0 10 11 Mutual svgs. banks.............. 24.4 26.4 28.2 30.0 31 .7 34.0 35.0 36.3 38.3 41.3 44.6 48,8 52.4 55.0 11 12 Credit unions........................ 1.7 2.0 2.4 2.9 3.4 3.9 4.4 5.0 5.6 6.3 7.2 8.2 9.1 10.0 12 Assets: 13 Households........................... 48.7 55.3 62.4 69.7 76.6 85.3 93.5 103, 1 114.3 127.3 142.5 158.3 171.5 178.8 13 14 Cr. union dep. at S & L’s.. . .3 .3 .4 .4 .4 .6 .5 .3 .5 .6 . 6 .7 .5 .3 14 III. U.S. Govt, securities 15 Total debt outstanding.................... 229.5 231.6 231.6 226.0 225.2 234.0 242.9 241.0 248.7 256.6 261.6 268.7 272.3 278.7 15 16 Direct excl. savings bonds........... 175.8 177.3 176.8 171.1 170.4 179.8 188.9 186.9 192.8 198.2 200.7 205.6 206.2 207.0 16 17 Short-term marketable............ 79.2 64.2 68,0 74.1 81.1 78.3 83,6 86.8 95.6 96.3 97.7 101 .7 105.2 107.4 17 18 Other........................................ 96.6 113.0 108.8 97.0 89.3 101 .5 105.4 100.1 97.2 101.9 103.1 103.9 101 .0 99.6 18 19 Nonguaranteed agency issues. .. . 2.1 2.1 3.6 4.0 6.2 5.7 7.9 7.9 8.5 10.1 1 1 .7 12.1 14.1 17.9 19 20 CCC certificates........................... 2.3 2.3 1.0 .8 .3 .8 .2 .6 .9 1.1 ,7 .5 .5 .5 20 21 Export-import loan partic.......... .3 .5 1 .2 .7 21 22 Other Ioan participations............ .3 1 .2 3.2 22 23 Savings bonds—Households....... 49.4 50.0 50,2 50.1 48.2 47.7 45.9 45.6 46.4 46.9 48.0 49.0 49.6 50. 1 23 24 Total holdings, by sector.................. 229.5 231.6 231.6 226.0 225.2 234.0 242.9 241.0 248.7 256.6 261.6 268.7 272.3 278.7 24 25 Federal Reserve System.................... 25.9 24.9 24.8 24.9 24.2 26.3 26.6 27.4 28.9 30.8 33,6 37.0 40.8 44.3 25 26 Short-term marketable............ 16,5 19,9 21.2 22.2 21.8 21 .0 20.2 19.2 18.2 20.2 25.2 27.3 30.9 36.3 26 27 Other direct............................. 9.4 5.1 3.6 2.7 2.4 5.4 6.5 8.1 10.7 10.6 8.4 9.8 9.8 7.9 27 28 Commercial banks...................... 67,0 72.6 64.6 61.7 61.6 70.2 62.1 64.3 70.1 71.4 68.8 69.2 66.8 63.4 28 29 Short-term marketable............ 32.1 17.0 12.1 15.8 19.2 19.2 15.6 22.6 31.9 26.6 23.1 27.1 25.3 20.9 29 30 Other direct............................ 31.4 51.9 49.6 43.5 40.0 48.0 44.6 39.3 35.2 40.4 41 .0 36.8 35.3 36.5 30 31 Nonguaranteed issues.............. 1.3 1.4 1.8 1.6 2.1 2.2 1.7 1.6 2.1 3.0 3.5 3.5 4.6 4.6 31 32 Loan participations.................. 2.3 2.3 1.0 .8 .3 .8 .2 .6 .9 1.4 1 .2 1.8 1.5 1.5 32 33 Nonbank finance......................... 32.1 31.3 30.8 29.5 29.1 29.9 30.5 30.1 30.8 32.4 31.7 33.7 32.9 33,7 33 34 Short-term marketable............ 5.3 4.3 3.8 4.4 5.2 6.0 6.0 7.0 8.5 9.3 7.8 8.9 8.5 9.9 34 35 Other direct............................. 26.6 26.9 26.7 24.6 23.0 23.0 23.2 21.5 20.7 21.3 21.9 22.4 21.6 20.6 35 36 Nonguaranteed........................ .2 .1 .3 .5 1 .0 .9 1.3 1.6 1.6 1.8 2.1 2.4 2.7 3.2 36 37 Foreign........................................ 4.5 4.8 5.8 6.7 6.9 7.0 10.0 10.6 11.0 12.3 12.9 13.4 13.3 10,7 37 38 Short-term............................... 3.4 3.7 4.2 5.2 5.4 5.4 7.5 7.7 7.1 9.2 8.7 8.8 8.4 7.5 38 39 Other........................................ l.l 1.1 1 .6 1.5 1.5 1.6 2.5 2.9 3.9 3.1 4.2 4.6 4.9 3.1 39 40 Pvt. domestic nonfin. sectors....... 99.9 98.0 105.6 103.2 103.3 100.6 113.7 108.7 108.0 109.7 114.6 115.4 118.6 126.6 40 41 Direct excl. svgs. bonds........... 50.0 47.5 54.0 51.2 52.0 50.3 63.0 58.4 56.7 57.5 60.5 60.0 61.3 64.2 41 42 Short-term marketable......... 21.9 19.4 26.8 26.5 29.6 26.8 34.3 30.2 30.0 30.9 32.9 29,7 32.0 32.8 42 43 Other direct.......................... 28.1 28.1 27.2 24.7 22.4 23.6 28.7 28.2 26.7 26.6 27.6 30.4 29.3 31.4 43 44 Nonguaranteed agency issues.. .5 .5 1.4 1.9 3.1 2.6 4.9 4.6 4.9 5.3 6.1 6.2 7.0 10.5 44 45 Loan participations.................. .2 .7 1 < 8 45 46 Savings bonds—Households... 49.4 50.0 50,2 50.1 48.2 47.7 45.9 45.6 46.4 46.9 48.0 49.0 49.6 50,1 46 IV. Other securities 47 Total at market value.............................. 262.1 348.7 415.2 444.5 417.7 543.6 586.4 592.8 722.9 668.5 767.9 865.2 968.6 909.6 47 48 State and local obligations.......... 34.2 39.7 44.8 49.4 53.9 58.8 63.7 68.7 75.5 82.5 88.0 94.6 101.2 107.2 48 49 Corporate and foreign bonds. . . 53,0 57.2 61.3 66.1 73.5 80.1 84.5 90.1 95.8 101.6 108.1 115.7 124,7 136.1 49 50 Nonfinancial corporations....... 47.0 50.4 53.3 56.9 63.2 68.9 71.9 75.3 80.0 84.5 88.4 92.4 97.8 108.0 50 51 Finance companies.................. 3.7 4.0 5.4 6.3 7.1 7.2 8.3 9.9 10.4 10.7 12.2 14.3 16.1 16.9 51 52 Commercial banks................... .2 .8 1.6 1.7 52 53 Foreign.................................... 2.4 2.7 2.7 2.9 3.3 3.9 4.3 4.9 5.4 6.3 7.3 8.2 9.1 9.5 53 54 Corporate stocks1........................ 174.9 251.9 309.2 329.0 290.3 404.8 438.2 434.0 551.7 484.4 571.8 655.0 742.8 666.3 54 55 Holdings, by sector......................... 262.1 348.7 415.2 444.5 417.7 543.6 586.4 592.8 722.9 668.5 767.9 865.2 968.6 909.6 55 56 Households.................................. 178.2 252.3 308.3 330.7 295.8 403.0 433.2 429,7 538.2 475.9 551.3 627.7 709.3 642.6 56 57 Stocks1.................................... 160.9 233.3 284.9 303.6 266.0 372.3 400.8 394.3 500.0 435.9 512,6 586.4 666.3 596.3 57 58 Bonds................................. 17.2 19.0 23.4 27.1 29.7 30.7 32.4 35,4 38.1 40.0 38.6 41.3 43.1 46.3 58 59 State and local government......... 7.1 8.1 9.2 10.3 11.9 13.7 15.2 17.4 19.8 22.1 24.4 27.0 29.6 33.7 59 60 Corporate business...................... .8 1.0 1.2 1.3 1.5 2.0 2.6 2.4 2.2 1.8 2.7 2.9 3.6 4.4 60 61 Commercial banks...................... 12.9 14.5 14.4 14.2 15.3 17.8 18.2 18.6 21.2 25.6 30.8 34.4 39.4 41.9 61 62 Mutual savings banks.................. 3.7 4.1 3.9 4.0 4.7 5.4 5.2 5.3 5.2 5.1 4.8 4.7 4.7 4.9 62 63 Insurance and pension funds....... 53.4 60.9 68.9 74.8 80.0 91.6 100.9 108.2 123.1 126.2 139.7 152.8 166.3 168.3 63 64 Stocks...................................... 9.4 12.4 16.6 17.8 17.5 24.0 28.2 30.9 40,9 39,3 47.8 56.2 64.1 61.0 64 65 Bonds...................................... 44.0 48.6 52.3 57.0 62.4 67.6 72.6 77.3 82.3 86.9 92.0 96.6 102.1 107.3 65 66 Finance n.e.c................................ 2.3 2.3 2.5 1.9 2.1 1.4 1.3 1.2 .7 .8 1 .0 .9 .2 -.9 66 67 Security brokers and dealers.. . 2.5 2.6 2.9 2.3 2.5 1.9 2.1 2.1 1.6 2.1 2.2 2.2 1.9 1.9 67 68 Investment companies—Net. .. -.3 -.3 -.4 -.5 -.5 - .6 -.9 -1.0 -1.0 -1.3 -1.3 -1.3 -1.8 — 3.0 68 69 Portfolio securities1............. 3.9 5.8 7.4 8.6 8.2 12.6 15.0 16.1 21.8 20.0 23.9 27.8 33.4 31.4 69 70 Own shares outstanding1... . 4.1 6.1 7.8 9.0 8.7 13.2 15.8 17.0 22.8 21.3 25.2 29.1 35.2 34.3 70 71 Rest of the world........................ 3.9 5.5 6.8 7.3 6.5 8.8 9.9 10.0 12.4 11,0 13.2 14.8 15.5 14.7 71 1 Corporate stocks are included in this table at market value of holdings and investment company shares at current redemption value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.14 FLOW OF FUNDS □ FEBRUARY 1968 7. SUMMARY OF PRINCIPAL FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Transaction category, or sector 1953 1954 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 V, Mortgages 71 Total outstanding............................. 89.4 100.9 116.1 129.5 140.4 153.9 171.0 185.2 202.2 223.5 248.4 273.8 299.3 319.3 71 72 1- to 4-family mortgages............. 66.1 75.7 88.2 99.0 107.6 117.7 130.9 141.3 153.1 166.5 182.2 197.6 213.7 224.1 72 73 In process................................. .6 .8 .9 .9 .9 1.2 1.3 1.2 1.6 2.0 2.5 2.2 2.2 1.3 73 74 Disbursed................................. 65.6 74.9 87.3 98.1 106.8 116.5 129.6 140.1 151.5 164.5 179.7 195.3 211.5 222.8 74 75 Other mortgages......................... 23.3 25.2 27.8 30.5 32.7 36.2 40.2 44.0 49.1 57.0 66.2 76.2 85.6 95.2 75 76 Holdings, by sector......................... 89.4 100.9 116.1 129.5 140.4 153.9 171.0 185.2 202.2 223.5 248.4 273.8 299.3 319.3 76 77 Households................................ 8.8 9.1 9.3 9.9 10.8 11.5 11.6 11.8 11.6 11.6 11.4 11.2 10.3 9.9 77 78 U.S. Government........................ 4.4 4.6 5.2 6.0 7.5 7.8 10.0 11.2 11.8 12.2 11.2 11.4 12.4 15.8 78 79 Commercial banks...................... 16.7 18.4 20.8 22.5 23.1 25.3 28. 1 28.7 30.3 34.3 39.2 43.7 49.3 53.9 79 80 Savings institutions...................... 35.0 41.3 49.0 55.7 61.4 69.2 78.5 87.4 98.4 111.5 127.7 142.4 155.5 162.4 80 81 Insurance sector........................... 23.7 26.4 29.9 33.6 36.0 38.0 40.3 43.2 45.9 48.9 52.9 58.0 63.5 68.6 81 82 Mortgage companies................... .6 .8 1.4 1.3 .9 1.4 1.6 1.6 2.2 2.7 3.5 3.9 4.5 3.9 82 VI. Bank loans n.e.c. 83 Total outstanding............................. 34.0 34.3 42.3 48.1 SO.4 51.6 59.1 61.9 64.9 71.1 78.7 87.4 103.9 112.1 83 84 Nonfinancial business.................. 26.1 25.7 30.7 36.3 38.0 38.2 42.9 45.2 46.5 50.8 55.5 60.3 72.6 82.5 84 85 Corporate............................... 19.1 18.2 21.4 25.8 26.9 26.3 29.4 30.8 30.9 33.3 35.9 39.2 48.4 54.0 85 86 Nonfarm noncorporate........... 4.4 4.6 5.9 7.1 7.3 7.7 8.6 9.4 10.3 11.4 12.9 14.1 16.5 19.8 86 87 Farm........................................ 2.7 2.9 3.4 3.4 3.8 4.2 4.9 5.1 5.3 6. 1 6.7 7.0 7.7 8.6 87 88 Households.................................. 3.7 4.1 4.4 4.8 5.0 5.7 6.7 7.2 8.1 8.6 9.1 10.5 11.8 11.6 88 89 Rest of the world........................ .7 1.0 1.4 1.8 2.1 2.6 2.9 3.0 3.7 4. 1 4.9 6.9 7.5 7.3 89 90 Financial sectors......................... 3.5 3.5 5.8 5.3 5.4 5.1 6.7 6.4 6.5 7.5 9.2 9.7 12.1 10.6 90 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 (A) Households I Total financial assets........................ 512.9 604.9 683.7 728.1 714.2 848.9 911.0 931.0 1073.6 1047.41171.8 1300.1 1438.9 1414.1 1 2 Demand deposits and currency... 61.8 63.2 63.7 64.7 63.5 65.2 66.7 65.9 66.6 69.4 73.5 79.5 86.7 88.6 2 3 Savings accounts.......................... 87.6 96.7 105.5 115.0 127.0 141.1 152.8 165.3 182.7 206.0 229,1 253.0 279.5 297.5 3 4 At commercial banks............... 38.9 41.4 43.1 45.3 50. 5 55.8 59.4 62.2 68.4 78.7 86.6 94.8 108.0 118.7 4 5 At savings institutions............. 48.7 55.3 62.4 69.7 76.6 85.3 93.5 103.1 114.3 127.3 142.5 158.3 171.5 178.8 5 6 fjfe insurance reserves..................... 63.7 66.3 69.3 72.7 75.5 78.5 82.0 85.2 88.6 92.4 96.6 101.1 105.9 110.8 6 7 Pension fund reserves. .......... 37.0 41.9 49.6 55.6 61.6 71.6 81.1 89.4 102. 1 107.7 121.3 136.1 150.8 159.2 7 8 Credit market instruments......... . 252.7 325.7 384.4 408.5 374.5 479.8 515.1 511.3 618.9 556.6 635.4 713.5 797.3 738.2 8 9 U.S. Government secruities.. . . 65.7 64.3 66.8 67.9 68.0 65.3 70.3 69.8 69. 1 69. 1 72.8 74.7 77.7 85.7 9 10 Short-term marketable......... 7.3 5.0 5.4 6.9 9.1 6.9 10.4 7.8 7.4 7.8 10.8 9.0 12.3 14.1 10 11 Other direct.......................... 8.6 9.1 10.3 9.7 8.8 9.2 11.0 13.6 12.6 11.5 10.6 12.9 11.8 13.3 11 12 Nonguaranteed.................... .4 . 3 .9 1.2 1.9 1.5 3.0 2.7 2.6 2.9 3.3 3.8 4.0 8.1 12 13 Savings bonds...................... 49.4 50.0 50.2 50.1 48.2 47.7 45.9 45.6 46.4 46.9 48.0 49.0 49.6 50.1 13 14 State and local obligations..... 13.5 15.2 18.6 21.6 23.6 23.8 25.7 28.7 31.6 34.2 33.8 36.9 38.4 40.6 14 15 Corporate and foreign bonds... 3.7 3.7 4.8 5.5 6.2 6.9 6.7 6.7 6.5 5.8 4.8 4.4 4.6 5.7 15 16 Corporate stock, mkt. value.. . . 160.9 233.3 284.9 303.6 266.0 372.3 400.8 394.3 500.0 435.9 512.6 586.4 666.3 596.3 16 17 Mortgages................................ 8.8 9.1 9.3 9.9 10.8 11.5 11.6 11.8 11.6 11.6 11.4 11.2 10.3 9.9 17 18 Security credit............................. .7 1.0 .9 .9 .9 1.2 1.0 I. 1 1.2 1.2 1.2 1.2 1.7 1,6 18 19 Miscellaneous.............................. 9.6 9.9 10.4 10.7 11.2 11.6 12.2 12.8 13.5 14.1 14.7 15.7 17.0 18.2 19 20 Total liabilities................... 106.9 119.2 139.9 156.3 169.2 181.9 203. 8 221.9 238.7 259.2 285.6 312.7 342.5 363.6 20 21 Credit market instruments........... 101.5 112. 5 132.2 148.3 161.2 172.6 194.2 212.2 227.4 247.9 272.0 299.0 327.6 348.5 21 22 1- to 4-family mortgages.......... 58.9 67.5 79.7 90.9 99.8 109.1 121.9 133.2 144.4 157.3 172.1 188.0 204.0 216.3 22 23 Other mortgages...................... 3.9 4.6 5.2 5.9 6.6 7.4 8.2 9.0 9.8 10.7 11.6 12.6 13.6 14.8 23 24 Consumer credit...................... 31.4 32.5 38.8 42.3 45.0 45.1 51.5 56.0 57.7 63.2 70.5 78.4 87.9 94.8 24 25 Bank loans n.e.c....................... 3.7 4.1 4.4 4.8 5.0 5.7 6.7 7.2 8.1 8.6 9.1 10.5 11.8 11.6 25 26 Other loans............................... 3.5 3.8 4.1 4.4 4.9 5.3 5.9 6.7 7.4 8.1 8.7 9.5 10.3 11.0 26 27 Security credit...................... 3.0 4.1 4.8 4.8 4.4 5.5 5.5 5.4 6.7 6.6 8.6 8.4 9.2 9.0 27 28 Trade credit................... 1.2 1.3 1.4 1.6 1.7 1.8 1.9 2.0 2.1 2.1 2.2 2.3 2.4 2.5 28 29 Deferred and unpaid life insurance premiums................................. 1.3 1.3 1.5 1.7 1.8 2.0 2.2 2.4 2.5 2.7 2.9 3.0 3.3 3.7 29 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.15 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 (B) Nonfinancial business—Total 1 Total financial assets........................ 153.8 161.1 181.3 189.0 196.4 211.8 228 1 233 7 247.2 263 5 282 2 297.5 319 2 2 Demand dep. and currency......... 45.6 48. 1 49.4 49.7 50.4 53.4 51.1 50. 1 51.8 50.8 50.0 48.2 46.5 47.2 2 3 Time deposits............................... .9 1.1 1.0 1.0 1.0 1.9 1.5 2.8 4.6 8.3 12.2 15.4 19.2 18.6 3 4 Credit mkt, instruments............... 33.9 32.0 37.4 33.9 34.2 35.1 43.8 39.2 39.0 41.2 44.4 45.9 46.8 50. 1 4 5 Trade credit................................. 51.1 56.0 67.4 74.9 77.6 85.5 92.7 98.9 106.5 114.7 123.1 131.4 144.2 155.0 5 6 Miscellaneous............................... 22.3 24.0 26.1 29.5 33.2 35.8 39.0 42.7 45.3 48.4 52.4 56.7 62.5 68.7 6 7 Total liabilities................................. 190.1 198.4 226.3 244.9 257.5 272.0 296.4 312.1 318.5 347.5 379.5 411.9 456.2 504.7 7 8 Credit market instruments........... 107.1 112.0 122.6 133.7 144.4 154.1 166.5 176.2 187.2 204.8 223.9 244.5 274. 1 306.4 8 9 Corporate bonds...................... 47.0 50.4 53.3 56.9 63.2 68.9 71.9 75.3 80.0 84.5 88.4 92.4 97.8 108.0 9 10 1-to 4-family mortgages......... 6.6 7.4 7.6 7.2 6.9 7.4 7.6 6.9 7. 1 7.2 7.5 7.3 7.5 6.5 10 1 I Other mortgages...................... 19.4 20.6 22.6 24.6 26. 1 28.8 32.0 35.0 39.3 46.3 54.6 63.7 72.0 80.5 11 12 Bank loans n.e.c....................... 26.1 25.7 30.7 36.3 38.0 38.2 42.9 45.2 46.5 50.8 55.5 60.3 72.6 82.5 12 13 Other loans.............................. 7.9 7.9 8.3 8.7 10.2 10.7 12.1 13.7 14.3 16.0 17.8 20.8 24.3 29.0 13 14 Trade debt, net............................ 39.7 44.0 54.0 59.4 61.2 65.9 71.6 75.7 80.2 85.7 92.7 100.1 108.3 117.4 14 15 Other liabilities............................ 43.2 42.4 49.7 51.8 51.9 52.0 58.3 60.2 51.1 57.0 62.9 67.3 73.9 80.8 15 (C.l) Farm business 1 Total financial assets........................ 7.5 7.4 7.5 7.4 7.3 7.7 7.4 7.2 7.2 7.2 7.4 7.9 8.2 8.3 1 2 Demand deposits and currency... 7.0 6.9 6.9 6.7 6.6 6.9 6.2 5.8 5.8 5.9 5.7 5.9 6.0 6.0 2 3 Noniife insurance claims............. 1.2 1.2 1.3 1.4 1.4 1.5 1.6 1.6 1.7 1.7 1.9 2.0 2.2 2.3 3 4 Total liabilities................................ 13.5 14.4 15.9 16.8 18.2 20.0 22.3 23.8 25.4 28.3 31.4 34.3 38.3 42.6 4 5 Credit market instruments........... 11.4 12.2 13.6 14.4 15.6 16.9 18.8 20.1 21.5 23.8 26.3 28.9 32.2 35.7 5 6 Mortgages................................ 7.7 8.2 9.0 9.8 10.4 11.1 12.1 13. 1 13.9 15.2 16.8 18.9 21.2 23.3 6 7 Bank loans n.e.c,...................... 2.7 2.9 3.4 3.4 3.8 4.2 4.9 5. 1 5.3 6. 1 6.7 7.0 7.7 8.6 7 8 Other loans.............................. 1.0 1.1 1.1 1.2 1.4 1.6 1.9 2.0 2.2 2.5 2.8 3.0 3.3 3.7 8 9 Trade debt................................. 2.1 2.2 2.3 2.4 2.6 3. 1 3.5 3.7 3.9 4.5 5. 1 5.5 6.1 7.0 9 (C.2) Noncorporate nonfinancial business 1 Total financial assets....................... 16.5 17.3 17.9 18.6 19.8 21.1 20.6 20.7 21.1 21.7 22.2 22.9 23.6 24.3 1 2 Demand deposits and currency... 10.4 10.9 11.2 11.5 12.4 13.6 12.7 12.4 12.5 12.5 12.5 12.5 12.5 12.5 2 3 Consumer credit.......................... 4.2 4.3 4.4 4.7 4.8 4.8 5.0 5.3 5.5 5.9 6. 3 6.7 7.1 7.5 3 4 Nonlife insurance claims............. 1.9 2.1 2.3 2.4 2.6 2.7 2.9 3.0 3.1 3.3 3.5 3.7 4.0 4.3 4 5 Total liabilities................................ 16.4 19.4 23.0 24.5 26.7 28.5 32.0 34.8 37.9 43.1 49.6 58.8 66.0 73.1 5 6 Credit market instruments........... 19.5 20. 5 23.0 24.9 26.0 27.9 30.7 32.7 35.5 40.2 46.2 52.3 59.5 67.4 6 7 1- to 4-family mortgages......... 5.1 5.5 5.6 5.4 5.3 5.5 5.6 5.3 5.4 5.4 5.6 5.5 5.5 5.0 7 8 Multifamily and coml. mtgs.. .. 5.8 6.2 6.8 7.4 7.9 8.9 10.0 10.9 12.7 15.5 18.9 22.4 25.4 28.6 8 9 Bank loans............................... 4.4 4.6 5.9 7. 1 7.3 7.7 8.6 9.4 10.3 11.4 12.9 14. 1 16.5 19.8 9 10 Other loans.............................. 4.2 4.2 4.7 5.0 5.6 5.8 6.5 7.1 7.1 7.8 8.8 10.4 12.1 13.9 10 11 Trade debt, net.................. -3.1 -1.2 -.4 .7 .6 1.3 2.1 2.5 3.0 3.4 6.5 6.5 5.7 11 12 Trade debt.............................. 9.0 11.0 12.2 132. 13.7 14.8 15.2 15.7 16.4 16.9 17.0 20.8 21.1 20.6 12 13 Trade receivables.................... 12.1 12.1 12.2 13.6 13.1 14.2 13.9 13.6 13.9 13.9 13.6 14.3 14.5 14.8 13 (D) Corporate nonfinancial business 1 Total financial assets........................ 129.8 136.4 155.9 163.0 169.3 183.0 200.1 205.8 218.9 234.6 252.6 266.6 287.4 306.8 1 2 Liquid assets ............................... 52.7 52.4 57.7 53.5 53.4 55.8 61.4 57.3 60.6 64.6 68.9 69.7 70.5 71.5 2 3 Demand deposits and currency. 28.9 31.0 32.0 32.2 32.1 33.6 32.6 32.1 33.8 32.8 32.0 29.8 28.0 28.7 3 4 Time deposits.......................... .9 1. 1 1.0 1.0 1.0 1 .9 1.5 2.8 4.6 8.3 12.2 15.4 19.2 18.6 4 5 U.S. Govt, securities................ 21.4 19.1 23.3 18.8 18.4 18.4 25.0 19.5 19.2 19.6 20.2 18.6 16.5 15.3 5 6 Open market paper.................. 1.4 1.3 1.4 1.6 1.9 1.9 2.4 2.9 3.0 3.8 4.5 5.9 6.7 9.0 6 7 State and local obligations........... .8 1.0 1.2 1.3 1.5 2.0 2.6 2.4 2.2 1.8 2.7 2.9 3.6 4.4 7 8 Consumer credit.......................... 6.1 6.4 7.1 7.5 7.6 8. 1 8.9 9. 1 9.2 10.1 10.8 11.7 12.9 14.0 8 9 Trade credit................................ 51.1 56.0 67.4 74.9 77.6 85.5 92.7 98.9 106.5 114.7 123.1 131.4 144.2 155.0 9 10 Other financial assets................... 19.2 20.7 22.5 25.7 29.2 31.7 34.6 38.1 40.4 43.4 47.0 50.9 56.3 62.0 10 1 i Total liabilities................................. 160.2 164.7 187.4 203.5 212.6 223.5 242.1 253.5 255.2 276.2 298.5 318.8 351.9 388.9 11 12 Credit market instr..................... 76.1 79.3 85.9 94.4 102.8 109.3 117.0 123.3 130.3 140.9 151.4 163.3 182.4 203.4 12 13 Corporate bonds...................... 47.0 50.4 53.3 56.9 63.2 68.9 71.9 75.3 80.0 84.5 88.4 92.4 97.8 108.0 13 14 Mortgages................................. 7.3 8.1 8.8 9.2 9.5 10.8 12.0 12.6 14.4 17.3 20.9 24.2 27.3 30.0 14 15 Bank loans n.e.c....................... 19.1 18.2 21.4 25.8 26.9 26. 3 29.4 30.8 30.9 33.3 35.9 39.2 48.4 54.0 15 16 Other loans.............................. 2.8 2.6 2.4 2.5 3.2 3.3 3.7 4.7 5.0 5.7 6.2 7.5 8.9 11.3 16 17 Profit taxes payable..................... 19.3 16.0 20.1 18.1 16.0 13.4 15.6 13.6 14.9 15.9 17.5 18.5 20.4 20.6 17 18 Trade debt................................... 40.8 43.0 51.7 57.4 57.9 62.2 66.9 70.0 73.8 78.2 84.2 88.2 95,6 104.7 18 19 Other liabilities............................ 24.0 26.4 29.6 33.7 35.9 38.6 42.7 46.6 36.3 41.1 45.4 48.8 53.4 60.2 19 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.16 FLOW OF FUNDS □ FEBRUARY 1968 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 (E) U.S. Government 54.3 50.4 55.1 55.3 56.8 56.1 62.9 65.2 68.3 74.4 78.8 84.1 88.9 97.0 1 2 Gold and official U.S. foreign exchange................................... 1.5 1.3 1.2 1.8 2. 1 2.0 2. 1 1.7 1.9 1.2 1.2 1.0 1. 1 .9 2 3 Demand deposits and currency... 6.0 5.7 5.4 5. 1 5.3 5.6 6.3 7.3 7.4 8.3 7.9 8.5 7. 1 7.0 3 4 Credit market instruments........... 23.0 22.7 24.1 25.2 27.6 29.3 33.2 35.4 38.0 41.8 44. 3 48. 1 52.7 60.3 4 5 J- to 4-family mortgages......... 2.8 2.8 3.0 3.5 4.7 4.7 6. 3 7. 1 7. 3 7.4 6.2 6.0 6.4 8.8 5 6 Other mortgages...................... 1.7 1.8 2.2 2. 5 2 8 3.1 3.7 4.1 4. 5 4.8 5.0 5.4 6.0 6.9 6 7 Other loans............................... 18.5 18.1 18.9 19.2 20.2 21.5 23.2 24.2 26.2 29.6 33.1 36.7 40.3 44. 5 7 8 To svgs. and loan assns......... 1.0 .9 1.4 1.2 1.3 1.3 2.1 2.0 2. 7 3.5 4.8 5.3 6.0 6.9 8 9 To rest of the world............... 12.0 11.8 ll.8 11.8 12.2 12.8 12 8 13.3 13.8 14.9 16.0 17.5 19.0 19.9 9 10 To others............................ 5.5 5.4 5.7 6.2 6.7 7.5 8. 3 8.9 9.8 11.2 12.4 13.8 15.3 17. 7 10 11 Time deposits........................ .3 .4 .4 .3 3 . 3 . 3 . 3 . 3 . 3 .3 . 3 .3 .2 1 1 12 Taxes receivable................... 20.3 16.8 20.4 18,6 16.7 14.3 16.3 15.0 15.5 16.6 18.0 18.9 20.1 20.1 12 13 Trade credit................................. 2.2 2.4 2.3 2 4 2. 3 1.7 1 7 1.8 1.8 2.0 2. 5 2.7 3.1 4.4 13 14 M iscellaneous.............................. .9 1.0 1.4 1.9 2.5 2.8 3 1 3.7 3.5 4.2 4.6 4 6 4.5 4. 1 14 1 5 Total liabilities.................. 253.5 255.6 255.8 251.6 251.2 261.3 271.0 270.7 280.0 289.2 295.4 303.6 309.5 318.8 15 16 Life insurance reserves................ 6.3 6.0 5.8 6.1 6.2 6.2 6.4 6.4 6. 5 6.6 6.8 6 9 7.0 7.1 16 17 Retirement fund reserves............. 8.9 9.4 10.0 10 9 11 3 12.3 13.2 14.1 15.0 16.0 17.2 18.4 19.7 21.0 17 18 Credit market instruments.............. 229.5 231.6 231.6 226 0 225 2 234.0 242.9 241 0 248.7 256.6 261.6 268.7 272 3 278.7 18 19 U.S. Govt, securities................ 229.5 231.6 231.6 226.0 225.2 234.0 242.9 241.0 248.7 256.6 261.6 268.7 272.3 278.7 19 20 Savings bonds................. 49.4 50.0 50.2 50.1 48.2 47. 7 45.9 45.6 46 4 46.9 48. d 49.0 49.6 50.1 20 21 Short-term mkt............. 79.2 64.2 68.0 74.1 81.1 78.3 83.6 86.8 95.6 96.3 97.7 101.7 105.2 107.4 21 22 Other direct.......................... 96.6 113.0 108.8 97,0 89 3 101.5 105.4 100.1 97.2 101.9 103.1 103.9 101.0 99.6 22 23 Nonguaranteed issues............ 2.1 2.1 3 6 4.0 6 2 5. 7 7.9 7. 9 8.5 10.1 11.7 12.1 14.1 17.9 23 24 Loan participations......... 2.3 2.3 1.0 .8 .3 .8 .2 .6 . 9 1.4 1.2 2.0 2.4 3.7 24 25 Trade debt.................................. 2.6 2.4 2.3 2.6 2.8 2.8 2.9 3. 1 3.4 3.7 3.6 3.4 3.9 4. 5 25 26 Treasury currency liability........... 2.5 2.5 2.5 2. 5 2.6 2.6 2.6 2.7 2.7 2.8 2.8 2.8 3.1 4.0 26 27 Miscellaneous liabilities............... 3.7 3.8 3.5 3.4 3.2 3.3 3.0 3.4 3.7 3.5 3.4 3.4 3.4 3.5 27 28 Dep. of svgs. and loan asso­ ciations at FHLB............. .6 .8 .7 .7 . 7 .8 .6 .9 1.2 1.2 1.2 1.2 1.0 1.0 28 29 Other........................................ 3.2 3.0 2.8 2.7 2.6 2.5 2.5 2.5 2.5 2.3 2.3 2.3 2.4 2.5 29 (F) State and local governments 1 Total financial assets........................ 30.7 33.7 35.7 37.5 40.1 42.6 45.7 49.5 54.1 59.9 67.5 74.8 82.7 91.2 I 2 Liquid assets................................ 13.0 13.0 13.1 13.8 15.3 15.4 17.0 17.9 18.9 21.5 25.6 28.2 31.5 33.9 2 3 Demand deposits and curr....... 8.0 7.6 7.4 7.0 7.2 7.1 7.2 6. 1 6.4 7.3 9.7 11.1 10.9 11.7 3 4 Time deposits........................... 2.0 2.4 2.4 2.4 2.8 3.6 3.2 4.6 5.5 6.5 8.1 9.8 12.2 13.5 4 5 Short-term U.S. Govt, securities 3.1 2.9 3.3 4.3 5.3 4.7 6.6 7.2 7.1 7.7 7.8 7.3 8.4 8.8 5 6 Other U.S. Govt, securities......... 9.8 11.7 12.2 12.2 11.6 12.2 11.8 12. 1 12.6 13.2 13.9 14.8 16.0 16.9 6 7 State and local obligations........... 4.3 4.7 5.1 5.6 6. i 6.6 7.0 7.2 7.3 6.8 6.0 5.3 4.8 4.5 7 8 Corporate bonds. ......................... 2.7 3.5 4.1 4.8 5.9 7. 1 8.2 10.2 12.6 15. 3 18.4 21.7 24.8 29.2 8 9 1- to 4-family mortgages............ . 1 .2 .3 .4 .5 .8 1.2 1.7 2.1 2.4 2.9 3.5 4.3 9 10 Taxes receivable,........................ .9 .8 1.0 1.0 .9 .8 .9 .9 1.0 1. I 1.3 1.9 2.1 2.3 10 11 Total liabilities................................ 44.5 51.0 57.5 63.8 70.4 77.4 84.7 92.3 101.9 111.9 120.6 130.7 141.1 151.8 11 12 Credit market instruments........... 35.0 40. 1 45.2 50.0 54.7 59.8 64.9 70.2 77.3 84.9 90.7 97.6 104.7 111.5 12 13 State and local obligations....... 34.2 39.7 44.8 49.4 53.9 58.8 63.7 68.7 75.5 82.5 88.0 94.6 101.2 107.2 13 14 Other loans (U.S. Govt.)......... .8 .5 . 5 .6 .7 1.0 1.2 1.5 1.8 2.4 2.7 3.1 3.5 4.4 14 15 Trade debt.................................... 1.4 1.6 1.7 1.8 2.0 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 15 16 Retirement fund reserves............. 8.1 9.3 10.6 12.1 13.7 15.5 17.4 19.7 22.1 24.5 27.1 30.2 33.5 37.3 16 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.17 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES (Amounts outstanding at end of year; in billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 (G) Monetary authorities 1 Total financial assets....................... 53.6 52.4 53.0 53.5 53.5 53.3 53.3 52.2 53.6 55.3 57.5 60.8 63.1 67.3 1 2 Gold and fgn. exchange *............. 22.0 21.7 21.6 21.9 22.8 20.5 19.4 17.7 16.8 16.0 15.6 15.6 14.3 14.0 2 3 Treasury currency....................... 4.7 4.8 4.9 4.9 5.0 5.1 5.2 5.2 5.4 5.4 5.4 5.2 5.4 6.2 3 4 Credit market instruments.......... 25.9 25.1 24.8 25.0 24.3 26.4 26.7 27.5 28.9 30.9 33.8 37.2 41.0 44.5 4 5 U.S. Govt, securities................ 25.9 24.9 24.8 24.9 24.2 26.3 26.6 27.4 28,9 30.8 33.6 37.0 40.8 44.3 5 6 Short-term mkt..................... 16.5 19.9 21.2 22.2 21.8 21.0 20.2 19.2 18.2 20.2 25.2 27.3 30.9 36.3 6 7 Other.................................... 9.4 5.1 3.6 2.7 2.4 5.4 6.5 8. 1 10.7 10.6 8.4 9.8 9.8 7.9 7 8 F.R, float.................................... .9 .8 1.6 1.7 1.4 1.3 1.6 1.8 2.3 2.9 2.6 2.6 2.2 2. 5 8 9 F.R. loans to domestic banks. . . . * * . 1 * . 1 ♦ .5 * . 1 * * .2 . 1 .2 9 10 Total liabilities................................ 53.6 52.4 53.0 53.5 53.5 53.3 53.3 52.2 53.6 55.3 57.5 60.8 63.1 67.3 10 Vault cash.................................... 2.5 2.5 2.7 3.3 3.3 3.2 3.0 3.3 3.7 4.3 5.0 4.5 4.9 5.5 I 1 12 Member bank reserves................ 20.2 18.9 19.0 19.1 19.0 18.5 18.2 17.1 17.4 17.5 17.0 18.1 18.4 19.8 12 13 Demand deposits and currency... 29.8 29.9 30.0 30.1 30. 1 30.3 30.8 30.6 31.4 32.3 34.2 36.8 38.8 41.2 13 14 Due to U.S. Government......... 1.1 1.4 1.2 1.2 1.2 1.0 .9 .9 .9 1.0 1.2 1.4 1.4 1.6 14 15 Due to rest of the world......... .4 . 5 .4 .3 .4 .3 .4 .2 .3 .3 .2 .3 .2 .4 15 16 Currency outside banks........... 28.3 28.0 28.5 28.5 28.5 28.9 29.6 29.5 30.2 31.0 32.7 35.1 37.2 39.2 16 17 Other........................................... 1.1 1.2 1.2 1.1 1.1 1.3 1.0 1.2 1.2 1.3 1.3 .9 .9 .8 17 (H) Commercial banks2 I Total financial assets....................... 170.5 179.7 185. 1 191.3 197.0 211.7 217.0 226 0 243.2 264.0 283.5 307.0 337.5 356.9 I 2 Member bank reserves................ 20.2 18.9 19.0 19.1 19.0 18.5 18.2 17. 1 17.4 17.5 17.0 18. 1 18.4 19.8 2 3 Vault cash.................................... 2.5 2.5 2.7 3.3 3.3 3.2 3.0 3.3 3.7 4.3 5.0 4.5 4.9 5.5 3 4 Total loans and investments3... . 146.2 156.4 161.6 166.7 172.0 187.1 192.8 201.8 217.6 237.2 256.5 278.9 307.9 324.3 4 5 Credit market instruments....... 142.7 152.0 156.5 162.4 167.7 182.5 188.0 196.7 211.4 229.9 248.6 270.5 299.5 315.3 5 6 U.S. Govt, securities4.......... 67.0 72.6 64.6 61.7 61.6 70.2 62. 1 64.3 70. 1 71.4 68.8 69.2 66.8 63.4 6 7 Short-term mkt................. 32.1 17.0 12.1 15.8 19.2 19.2 15.6 22.6 31.9 26.6 23.1 27.1 25.3 20.9 7 8 Other direct...................... 31.4 51.9 49.6 43.5 40.0 48.0 44.6 39.3 35.2 40.4 41.0 36.8 35.3 36.5 8 9 Agency issues....................... 1.3 1.4 1.8 1.6 2.1 2.2 1.7 1.6 2. 1 3.0 3.5 3.5 4.6 4.6 9 10 Loan participations............. 2,3 2.3 1.0 .8 .3 .8 .2 . 6 .9 1.4 1.2 1.8 1.5 1.5 10 11 Other securities & mortgages. 29.6 32.9 35.2 36.7 38.4 43.1 46.3 47.3 51.5 59.9 70.0 78. I 88.7 95.8 11 12 State and local obligations. 10.8 12.6 12.7 12.9 13.9 16.5 17.0 17.6 20.3 24.8 30.0 33.5 38.6 41.0 12 13 Corporate bonds............... 2.1 1.9 1.7 1.3 1.4 1.3 i .2 1.0 .9 .8 .8 .9 .8 .9 13 14 1- to 4-family mortgages. . 11.9 13.2 14.9 16. 1 16,2 17.4 19. 1 19.2 20.0 22.0 24.7 27.0 30. 1 32.5 14 15 Other mortgages............... 4.8 5.2 5.9 6.4 6.9 7.8 8.9 9.5 10.4 12.3 14.4 16.7 19.2 21.5 15 16 Other credit exc. security.. - . 46.0 46.4 56.7 64.0 67.7 69.2 79.6 85.1 89.8 98.6 109.9 123.2 143.9 1'56. 1 16 17 Consumer credit............... 10.9 10.9 13.2 14.6 15.8 15.9 18.8 20.6 21.4 23.7 27.2 31.0 35.8 38.9 17 18 Bank loans n.e.c................ 34.0 34.2 42.3 48. 1 SO.4 51.5 59.1 61 .9 64.8 7UI 78.7 87.4 103.8 112.1 18 19 Other loans....................... 1.1 1 .4 1.2 1.3 1.5 1.7 1.7 2.7 3.5 3.8 4.0 4.8 4.3 5.2 19 20 Open market paper....... .7 .9 .7 .7 .9 1.1 1.0 1.9 2.8 3.0 3.1 3.8 3.3 5.2 20 21 Hypothecated deposits.. .4 .5 .5 .6 .6 .6 .7 .7 .8 .8 .8 1.0 1.1 21 22 Security credit............................. 3.6 4.5 5.0 4.3 4.2 4.7 4.9 5.1 6.2 7.3 7.9 8.4 8.5 9.0 22 23 Miscellaneous assets.................... 1.6 1.9 1.9 2.3 2.7 2.8 3.0 3.8 4.5 5.0 4.9 5. 5 6.2 7.4 23 24 Total liabilities................................. 158.3 166.7 171.5 176.9 181.8 195.6 200.1 207-9 223.9 243.6 262.8 284.8 314.0 332.2 24 25 Demand deposits, net.................. 107.6 112. 1 114.2 115.9 115.2 120.8 121.2 121.6 126.3 130.0 133.9 138.7 144.3 144.5 25 26 U.S. Government.................... 4.1 4.2 3.7 3.7 3.9 4.3 5. 1 5.9 5.9 7.2 6.5 6.5 5.5 5.0 26 27 Foreign................................... .3 .4 .4 .7 .9 .9 .9 1 . 1 1.8 1.9 2.2 2.7 2.8 2.4 27 28 Other, net................................ 103.2 107.6 no. i 111.5 110.4 115.6 115.3 114.5 118.6 121.0 125.1 129.5 135.9 137. 1 28 29 Time deposits............................... 45.1 48.9 50.3 52.3 57.8 65.8 67.5 73.3 82.7 98.3 112.6 127.2 (47.2 159.3 29 30 Foreign.................................... 2.8 3.4 3.2 3.1 3.1 4.0 3. 1 3.5 3.8 4.3 5.3 6.7 7.3 8.2 30 31 State and local govts................ 2.0 2.4 2.4 2.4 2.8 3.6 3.2 4.6 5.5 6,5 8.1 9.8 12.2 13.5 37 32 Nonfinancial corp............ ,9 1.1 1.0 1.0 1.0 1.9 1.5 2.8 4.6 8.3 12.2 15.4 19.2 18.6 32 33 Households.............................. 38.9 41.4 43. 1 45.3 50.5 55.8 59.4 62.2 68.4 78.7 86.6 94.8 108.0 118.7 33 34 U.S. Government.................... .3 .4 .4 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 .2 34 35 Mutual savings banks.............. .2 .3 .2 .2 . 1 .2 . 1 . 1 .2 .2 . 1 .2 .2 .2 35 36 F.R. float.................................... .9 .8 1.6 1.7 1.4 1.3 1.6 1.8 2.3 2.9 2.6 2.6 2.2 2.5 36 37 Borrowing at F.R. Banks............ . 1 . 1 .5 . 1 * .2 . 1 .2 37 38 Miscellaneous.............................. 4,6 4.9 5.4 6.9 7.3 7.6 9.3 11.1 12.4 12.3 13.7 16.2 20. 1 25.7 38 39 Memo: Total loans exc. mortgages. 49.6 50.9 61.8 68.3 71.9 73.8 84.5 90.2 96.0 105.9 117.8 131.6 152.4 165. 1 39 1 Monetary gold stock and F.R. holdings of foreign currencies. Ex­ 2 Excludes banks in territories and possessions. change Stabilization Fund holdings of gold and foreign exchange are in J Gross of bad debt reserves. Excludes corporate stock holdings, U.S. Govt, account, Table 8(E). 4 At par value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.18 FLOW OF FUNDS n FEBRUARY 1968 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; in billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 (I) Nonbank financial institutions 1 1 Total financial assets................... 185.6 206.6 233.2 251.6 268 3 298 1 326 5 351.7 391.2 416.3 462.2 507 8 553.4 ^73 A 1 2 Demand deposits and currency... 7.2 7.6 8.2 '8.4 8.8 9.5 9.5 10.0 11.0 12.0 12.2 12.5 13.1 13.5 2 3 Time deposits (Mut. svgs. bks.). . .2 .3 .2 .2 . 1 .2 . 1 . 1 .2 .2 . 1 .2 .2 .2 3 4 Svgs. and loan shares (Cr. unions). .3 .3 .4 .4 .4 .6 .5 .3 .5 .6 .6 .7 .5 .3 4 5 Credit mkt. instruments.............. 171.0 189.9 215. 1 232. 3 248.3 275.3 303.2 327.1 362.9 386.1 428.7 473.0 516.6 535.6 5 6 U.S. Govt, securities.......... 32.1 31.3 30.8 29.5 29 1 29 9 30. 5 30.1 30.8 32.4 31.7 33.7 32.9 33.7 6 7 State and local obligations....... 4.8 6.2 7.2 8.0 8.9 10.0 11.5 12.8 14.0 14.9 15.5 15.9 15.7 16.7 7 8 Corporate bonds..................... 44.3 47.8 50.4 54 3 59 7 64 3 67.8 71.5 75.2 79.0 83.4 87.8 93.5 98.4 8 9 Corporate stock............... 14.4 19.4 25.5 27.5 26.9 37.4 43.8 47.4 62.7 59.5 71.9 83.8 97.2 91.7 9 10 1 _ to 4-family mortgages.......... 42.6 50. 5 60.8 69.2 75.5 83 5 93.1 102.0 112. 5 123.5 137.5 150.6 163.4 168.5 10 11 Other mortgages.................. . 16.8 18.1 19.7 21.6 23.1 25.3 27.5 30.3 34.2 39.9 46.8 54. 1 60.4 66.8 11 12 Consumer credit........... .......... 10.2 10.9 14.1 15.5 16.7 16.3 18.8 21.1 21.6 23.5 26.2 29.0 32.1 34. 5 12 13 Other loans............................. 5.8 5.6 6. 5 6.7 8.4 8.6 10.2 11.8 12.0 13.6 15.7 18. 1 21.4 25.4 13 14 Security credit....................... 2.2 3.1 3.6 3.7 3.5 4.5 4. 5 4.5 5.6 5.3 7.2 6.7 6.9 6.8 14 15 Trade credit................................ 1.0 1.1 1.2 1.3 1.5 1.6 1.8 1.9 2.0 2.2 2.3 2. 5 2.6 2.9 15 16 Miscellaneous assets.................... 3.8 4.4 4.6 5 2 5 8 6 4 6.8 7.8 9. i 10.0 11.1 12.2 13.4 14.3 16 17 Total liabilities................................ 164.4 182.1 206.1 223.2 239.9 266.4 292.7 316.4 351.2 375.1 416.8 458.9 501.3 522.0 17 18 Time and savings deposits....... 48.9 55.6 62 8 70.1 77 0 85.9 94.0 103.5 114.8 127.9 143.1 159.0 172.0 179.0 18 19 Ins. and pension reserves........ 77.3 83.7 92.4 99.3 105.8 116.1 126.1 134.4 147.2 153.0 166.8 181.6 196.4 204.6 19 20 Credit mkt. instruments............... 14.5 16.7 23. 1 24.7 25.6 30.2 37.1 40.2 47.6 49.8 59.6 67. 8 79.9 81.7 20 21 Finance company bonds.......... 3.7 4.0 5.4 6. 3 7.1 7.2 8.3 9.9 10.4 io.7 12.2 14.3 16.1 16.9 21 22 Investment company shares... . 4. 1 6.1 7.8 9.0 8.7 13.2 15.8 17.0 22.8 21.3 25.2 29. 1 35.2 34.3 22 23 Mtg. loans in process............... .6 .8 9 9 9 1 2 1.3 1.2 1.6 2.0 2. 5 2.2 2.2 1.3 23 24 Bank loans n.e.c....................... 3.5 3.5 5.8 5.3 5.4 5. 1 6.7 6.4 6. 5 7.5 9.2 9.7 12.1 10.6 24 25 Other loans............................... 2.6 2.4 3.1 3.1 3.6 3.5 5.0 5.7 6.3 8.3 10.6 12.6 14.3 18.6 25 26 Finance co. paper........ 1.6 1.5 1.7 1.9 2.3 2.2 2.9 3.7 3.6 4.8 5.8 7.2 8.3 11.7 26 27 FHLB loans......................... 1.0 .9 1.4 1.2 1.3 1.3 2.1 2.0 2.7 3.5 4.8 5.3 6.0 6.9 27 28 Security credit............................ 3.4 4.5 4.7 4.2 4. 3 4.8 4.9 5.4 6. 3 7.2 7.7 7.9 7.9 8.5 28 29 Taxes payable.............................. .9 .7 .7 .6 .7 . 8 .9 .9 .8 .9 .9 ,9 1.0 1.1 29 30 Miscellaneous liabilities............... 19.3 20.9 22.5 24.5 26.5 28.6 29.6 32.1 34.5 36.3 38.6 41.6 44.2 47.2 30 (1.1) Savings and loan associations 1 Total financial assets........................ 26.7 31.6 37.7 42.9 48.1 55.1 63.5 71.5 82.1 93.6 107.6 119.4 129.6 134.0 I 2 Demand dep. and currency ..... .9 1.2 1.4 1.4 1.5 1.8 1.6 1.7 2.1 2.7 2.8 2.8 2.9 2.3 2 3 Credit market instruments........... 24.3 28.6 34.3 39.2 44.2 50.6 59.0 66. 3 75.6 85.9 99.2 110.3 119.9 124.6 3 4 U.S, Govt, securities................ 1.9 2.0 2.5 2.9 3.6 4.2 4.9 5.2 5.7 6.0 7.0 7.6 8.2 8.7 4 5 1 - to 4-family mortgages...... 21.0 25.0 30.0 34.0 38.0 42.9 49.5 55.4 62.4 69.8 79.1 87.0 94.8 97.8 5 6 Other mortgages...................... 1.0 1.1 1.4 1.7 2.0 2.7 3.7 4.7 6.4 9.0 11.9 14.3 15.5 16.7 6 7 Consumer credit..................... .4 .4 . 5 .6 .6 .8 .9 1.0 1.1 1. 1 1.3 1.3 1.4 1.5 7 8 M iscellaneous............................... 1.6 1.9 1.9 2.2 2.4 2.8 2.9 3.5 4.4 5.0 5.5 6.2 6.8 7.1 8 9 Total liabilities................................. 24.8 29.4 35.1 39.9 44.8 51.3 59.1 66.5 76.4 87.1 100.4 111.5 120.9 124.9 9 10 Savings shares.............................. 22.8 27.3 32.1 37.1 41.9 48.0 54.6 62.1 70.9 80.2 91.3 101.9 110.4 114.0 10 11 Credit mkt. instruments.............. 1.6 1.8 2.5 2.2 2.2 2.6 3.7 3.4 4.4 5.6 7.6 7.8 8.7 8.7 11 12 Mtg. loans in process.............. .6 .8 .9 .9 .9 1.2 i. 3 1.2 1.6 2.0 2.5 2.2 2.2 1.3 12 13 Borrowing from FHLB....... 1.0 .9 1.4 1.2 1.3 1.3 2.1 2.0 2.7 3.5 4.8 5.3 6.0 6.9 13 14 Bank loans n.e.c...................... . 1 . 1 . 1 .3 .2 .2 .2 .2 .3 .5 .5 14 15 Taxes payable.............................. . 1 . 1 . 1 15 16 Miscellaneous liabilities............... .4 . 4 .5 . 5 .6 .7 .9 1.0 1.1 1.2 1.4 1.6 1.7 2. 1 16 17 Memo: FHLB loans less deposits at FHLB.............................. .4 . 1 .7 .5 .6 .5 1.5 1.0 1.5 2.3 3.6 4.1 5.0 5.9 17 (1.2) Mutual savings banks 1 ’Total financial assets........................ 27.2 29.4 31.3 33.4 35.2 37.8 38.9 40.6 42.8 46.1 49.7 54.2 58.2 61.0 1 2 Demand dep. and currency......... .7 .8 .7 .8 .8 .8 .7 .7 .8 .8 .8 .8 .8 .8 2 3 Time deposits.............................. .2 . 3 .2 .2 . 1 .2 . 1 . 1 .2 .2 . I .2 .2 .2 3 4 Credit mkt. instruments.............. 26.1 28. 1 30.2 32.2 34.1 36.5 37.8 39.4 41.5 44.7 48.1 52.5 56.4 59.1 4 5 U.S. Govt, securities................ 9.3 8.8 8.6 8.2 7.9 7.6 7.3 6.7 6.6 6.7 6.5 6.5 6.2 5.7 5 6 State and local oblig.......... .4 .6 .6 .7 .7 .7 .7 .7 .7 .5 .4 .4 .3 .3 6 7 Corporate bonds...................... 2.8 2.9 2.6 2.7 3.2 3.8 3.6 3.8 3.6 3.5 3.2 3.1 2.9 3.2 7 8 Corporate stock........................ .4 .6 .7 .7 .8 .9 .8 .8 .9 1.0 1.2 1.3 1.4 1.5 8 9 1- to 4-family mortgages.......... 7.4 9.0 IM 13.0 14.1 15.6 16.9 18.4 20.0 22.1 24.7 27.4 30.1 31.7 9 10 Other mortgages...................... 5.6 6.0 6.4 6.8 7.1 7.6 8.1 8.6 9.1 10.2 11.5 13,2 14.6 15.7 10 11 Consumer credit...................... . 1 . 1 . 1 .2 .2 .2 .2 .3 .3 .3 .4 .4 II 12 Other loans............................... .1 . 1 . 1 . 1 . 1 .2 .2 .2 .3 .4 .3 .4 .5 .6 12 13 Miscellaneous assets.................... . 1 .2 .2 .2 .3 .3 .3 .3 .4 .5 .7 .7 .8 1.0 13 14 Savings deposits........................ 24.4 26.4 28.2 30.0 31.7 34.0 35.0 36.3 38.3 41.3 44.6 48.8 52.4 55.0 14 15 Miscellaneous liabilities.................. .2 .3 .3 .3 .3 .5 .6 .7 .8 .8 .9 1.0 1.1 l.l 15 i In addition to types shown, includes banks in possesions. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FLOW OF FUNDS A-65.19 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 (1.3) Credit Unions 1 Total financial assets........................ 1.7 2.0 2.4 2.9 3.4 3.9 4.4 5.0 5.6 6.3 7.2 8.2 9.1 10.0 1 2 Demand dep. and currency......... .2 .2 .2 .3 .3 .3 .3 .3 .4 .4 .4 .5 .5 .6 2 2 Svgs. and loan shares.................. . 3 . 3 . 4 .4 .4 .6 . 5 . 3 . 5 .6 . 6 .7 .5 . 3 3 4 Credit mkt. instruments............. 1.3 1 .5 1.9 2.2 2.7 3.0 3.6 4.3 4.7 5.4 6.1 7.0 8.1 9.2 4 5 Consumer credit....................... 1.1 I .3 1.7 2.0 2.4 2.7 3.3 3.9 4.3 4.9 5.6 6.5 7.5 8.5 5 6 1- to 4-family mortgages.......... . 1 . 1 .2 .2 .3 . 3 . 3 .4 .4 . 5 .5 .5 .6 .6 6 7 Credit union shares......................... 1.7 2.0 2.4 2.9 3.4 3.9 4.4 5.0 5.6 6.3 7.2 8.2 9.1 10,0 7 (1.4) Life insurance companies 1 Total financial assets........................ 76.6 82.1 87.9 93.2 98.3 104.3 110.1 115.9 122.8 129.2 136.9 144.9 154.1 161.7 1 2 Demand dep. and currency......... 1.2 1.2 1.3 1.3 1.3 1.4 1.3 1.3 1.4 1.5 1.5 1.5 1.5 1.5 2 3 Credit mkt. instruments............... 73.3 78.6 84. 1 89. 1 94.0 99.7 105.2 110.6 1 17.2 123.2 130.5 138.1 146.8 154.0 3 4 U.S. Govt, securities............... 9.9 9.1 8.6 7.6 7.1 7.3 7.0 6.5 6.1 6.2 5.9 5.6 5.1 4.8 4 5 State and local obligations....... 1. 3 1.8 2.0 2.2 2.4 2.7 3.2 3.6 3.9 4.0 3.9 3.8 3.5 3.1 5 6 Corporate bonds...................... 33.3 35.3 37.0 39.2 41 .8 44. 3 46. 5 48.2 50.7 53.2 56.0 58.3 61.1 63.3 6 7 Corporate stock....................... 2.6 3.3 3.6 3. 5 3.4 4. 1 4.6 5.0 6.3 6.3 7. 1 7.9 9.1 8.8 7 8 1- to 4-family mortgages.......... 13.2 15.2 17.7 20. 1 21.4 22.4 23.6 24.9 25.8 26.4 27.3 28.7 29.9 30.4 8 9 Other mortgages...................... 10. 1 10.8 11.8 12.9 13.8 14.7 15.6 16.9 18.4 20.5 23.2 26.4 30.1 34.2 9 10 Other loans....................... 2.9 3.1 3.4 3.6 4.1 4.3 4.7 5.5 5.9 6.6 7.0 7.4 7.9 9.4 10 11 Miscellaneous assets.................... 2.1 2.3 2.5 2.8 3.0 3.3 3.6 3.9 4. 3 4.6 4.9 5.3 5.7 6.2 1! 12 Total liabilities.......................... 72.5 77.3 82.4 87.4 92.3 97.5 103.1 108.5 114.2 120.3 126.8 134.0 141.9 149.3 12 13 T .ife insurance reserves................. 57.4 60.4 63.5 66.6 69.3 72. 3 75.6 78.8 82.1 85.8 89.9 94.2 98.9 103.7 13 14 Pension fund reserves.................. 8.8 10.0 11 .3 12. 5 14.1 15.6 17.6 18.9 20.3 21.6 23.3 25.3 27.3 29.4 14 15 Taxes payable.............................. .2 .2 .2 . 3 .3 . 3 .4 .4 .4 .4 .4 .6 .5 .6 15 16 Miscellaneous liabilities............... 6.0 6.7 7.3 8.0 8.6 9.3 9.5 10.5 11.5 12.4 13.2 14.0 15.2 15.6 16 (1.5) Noninsured pension plans 1 Total financial assets........................ 11.1 13.3 17.6 20. 1 22.4 28.2 33.0 36.8 44.8 45.7 53.7 62.2 70.2 71.5 1 2 Demand dep. and currency......... .4 .4 .4 .4 .5 .5 .5 .5 .7 .7 .8 .9 .9 .9 2 3 Credit mkt. instruments............... 10.8 12.9 17.2 19.7 22.0 27.7 32.4 36.3 44.1 44.9 52.9 61.3 69.2 70.6 3 4 U.S. Govt, securities.......... 2. 5 2.6 2.9 2.7 2.5 2.6 2.8 2.7 2.8 3. 1 3.4 3.8 3.5 3.7 4 5 Corporate bonds.................... 5.6 6.9 7.9 9. 5 11.3 12.8 14.1 15.7 16.9 18. 1 19.6 21.2 22.7 24.6 5 6 Corporate stock................. 2.4 3.2 6.1 7. 1 7.5 11.6 14.5 16.5 22.9 21.9 27.7 33.5 39.7 38.5 6 7 1- to 4-family mortgages......... .2 .2 .3 .4 .6 .7 1.0 1.3 1.6 1.9 2.2 2.7 3.3 3.8 7 (1.6) Other insurance companies 1 Total financial assets........................ 16.8 19.2 21.0 21.8 22.1 24.8 27.1 28.2 31.6 32.1 35.2 38. 1 40.2 40.0 1 2 Demand dep and currency......... 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.4 1.3 1.3 2 3 Credit market instruments 1........ 14.4 16.8 18.5 19.2 19.4 21.9 23.9 24.9 28.2 28.5 31.5 34.2 36.2 35.8 3 4 U.S. Govt, securities................ 6. 1 6.2 6.1 5.7 5.6 5.5 5.8 5.6 5.6 5.7 5.9 6.0 6.0 5.6 4 5 State and local obligations....... 2.6 3.4 4.2 4.9 5.6 6.2 7.2 8. 1 9.1 9.8 10.6 11.0 11.3 12.7 5 6 Corporate bonds...................... 1.1 1.1 1 .2 1.2 1.4 1.5 1.6 1.7 1.7 1.8 2.0 2.4 3.4 3.6 6 7 Corporate stock........................ 4.5 5.9 6.9 7.2 6.7 8.4 9. 1 9.4 11.8 11.1 13.0 14.7 15.3 13.8 7 8 Trade credit................................. 1.0 1. 1 1.2 1.3 1.5 1.6 1.8 1.9 2.0 2.2 2.3 2.5 2.6 2.9 8 9 Total liabilities................................ 10.1 10.6 11.2 11.8 12.9 13.8 14.9 15.9 16.7 17.4 18.4 19.6 21.2 23.0 9 10 Policy payables............................ 9.7 10. 3 11.0 11.8 12,8 13.7 14.8 15.7 16.5 17.2 18.3 19.6 21.1 22.9 10 11 Taxes payable.............................. .4 .2 .2 * .1 .2 . 1 . 1 .1 . 1 . 1 * . 1 . 1 1 1 (1,7) Finance companies 1 Total financial assets........................ 13.0 13.2 17.3 18.1 19.6 19.3 22.8 25.0 25.6 28.2 32.3 36.3 41.6 44.8 I 2 1- to 4-family mortgages............. .6 . 8 1.4 1. 3 .9 1.4 1.6 1.6 2.2 2.7 3.5 3.9 4.5 3.9 2 3 Consumer credit.......................... 8.6 9. 1 11.8 12.8 13.5 12.7 14.5 16.0 15.9 17.2 19.1 20.8 22.8 24.0 3 4 Other loans................................. 2.6 2. 1 2.6 2. 5 3.5 3.4 4.6 5.3 5.0 5.8 7.4 9.2 11.9 14.2 4 5 Total liabilities.............................. . 9.1 9. 1 13.0 13.7 15.0 14.6 17.9 20.1 20.6 23.2 27.1 31.0 36.2 38.9 5 6 Corporate bonds.......................... 3.7 4.0 5.4 6.3 7.1 7.2 8.3 9.9 10.4 10.7 12.2 14.3 16.1 16.9 6 7 Bank loans n.e.c........................... 3.4 3.4 5.7 5.2 5.3 4.9 6.4 6.2 6.3 7.4 8.9 9.4 11.6 10.1 7 8 Open-market paper...................... 1.6 1.5 1.7 1.9 2.3 2.2 2.9 3.7 3.6 4.8 5.8 7.2 8.3 11.7 8 9 Taxes payable*. .*.......................... .3 .2 .3 .3 .3 .2 .3 .3 .3 .3 .3 .2 .2 .2 9 1 Includes mortgages not shown separately. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.20 FLOW OF FUNDS □ FEBRUARY 1968 8. SECTOR STATEMENTS OF FINANCIAL ASSETS AND LIABILITIES—Continued (Amounts outstanding at end of year; billions of dollars) Category 1953 1954 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 (1.8) Security brokers and dealers I Total financial assets........................ 5.5 6.5 6.8 6.2 6.3 6.9 6.9 7.4 8.4 9.2 9.8 9.9 10.0 10.6 1 2 U.S. Govt, securities.................... .6 .7 .3 .2 .4 .6 .4 1.0 1.3 2.0 .7 1.4 1. 1 1.7 2 3 Other securities........................... 2.5 2.6 2.9 2.3 2.5 1.9 2.1 2.1 1.6 2.1 2.2 2.2 1.9 1.9 3 4 Security credit............................. 1.9 2.7 3.1 3.1 2.8 3.8 3.8 3.6 4.7 4.6 6.1 5.6 6.1 5.9 4 5 Total liabilities................................. 3.5 4.5 4.8 4.2 4.3 4.9 4.9 5.4 6.4 7.2 7.8 7.9 8.0 8.6 5 6 Security credit liability................ 3.4 4.5 4.7 4.2 4.3 4.8 4.9 5.4 6.3 7.2 7.7 7.9 7.9 8.5 6 7 From banks............................. 2.4 2.9 3.3 2.6 2.6 2.8 3.0 3.3 4. 1 5.2 5.3 5.5 5.3 5.8 7 8 From agencies of fgn. banks... .3 .4 .5 .6 .7 .7 .8 .8 .9 .7 1.1 l.l .8 .9 8 9 Customer credit balances......... .8 1.1 1.0 1.0 1.0 1.3 1.1 1.2 1.3 1.3 1.3 1.3 1.8 1.8 9 10 Taxes payable.............................. ♦ * * ♦ * ♦ .1 * .1 * .1 .1 .1 .1 10 (1.9) Open-end investment companies 1 Total financial assets........................ 4.1 6.1 7.8 9.0 8.7 13.2 15.8 17.0 22.8 21.3 25.2 29.1 35.2 34.3 1 2 Demand dep. and currency........ .2 .2 .2 .2 .2 .2 .3 .4 .3 .6 .6 .6 1.0 1.5 2 3 Credit mkt. instruments.............. 4.0 6.0 7.7 8.8 8.5 13.0 15.5 16.7 22.5 20.7 24.6 28.6 34.2 32.8 3 4 U.S. Govt, securities................ . 1 .2 .3 .3 .3 .4 .6 .6 .6 .7 .7 .8 .8 1.4 4 5 Corporate bonds...................... .3 .4 .5 .7 .8 .9 1.1 1.2 1.6 1.6 1.8 2.1 2.6 2.9 5 6 Corporate stock,...................... 3.5 5.4 6.9 7.9 7.4 11.7 13.9 14.8 20.3 18.3 22.1 25.6 30.9 28.4 6 (1.10) Agencies of foreign banks 1 Total financial assets........................ 2.0 2.2 2.4 2.8 2.9 3.1 3.2 3.6 3.8 3.6 3.6 4.2 3.7 3.8 1 2 Demand dep. and currency......... .4 .4 .5 .6 .6 .6 .6 .7 .8 .7 .7 .8 .7 .8 2 3 U.S. Govt, securities.................... 1.3 1.4 1.3 1.5 1.4 1.5 1.5 1.7 1.8 1.8 1.5 1.9 1.8 1.9 3 4 Security credit............................. .3 .4 .5 .6 .7 .7 .8 .8 .9 .7 l.l 1.1 .8 .9 4 5 Deposit liabilities............................. 2.0 2.2 2.4 2.8 2.9 3. 1 3.2 3.6 3.8 3.6 3.6 4.2 3.7 3.8 5 (J) Rest of the world 1 Total financial assets........................ 33.5 37.7 41.0 43.6 43.4 50.1 55.9 60.5 66.9 68.5 74.3 80.4 84.2 84.7 1 2 Gold............................................ 14.2 15.1 15.9 16.0 15.9 18.9 20.7 22.7 24.2 25.4 26.7 27.6 29.5 29.9 2 3 U.S. demand deposits.................. .8 .9 .8 1.0 1.2 1.2 1.2 1.3 2.1 2.2 2.4 2.9 3.0 2.8 3 4 Time deposits............................... 2.8 3.4 3.2 3. 1 3.1 4.0 3. 1 3.5 3.8 4.3 5.3 6,7 7.3 8.2 4 5 Credit market instruments........... 8.9 10.8 13.0 14.4 14.1 16.3 20.3 21.5 24.5 24.4 27.2 29.4 30.4 27.2 5 6 U.S. Govt, securities................ 4.5 4.8 5.8 6.7 6.9 7.0 10.0 10.6 11.0 12.3 12.9 13.4 13.3 10.7 6 7 Corporate bonds...................... .3 .2 .3 .3 .4 .5 .5 .6 .6 .7 .7 .9 .9 2.0 7 8 Corporate stock....................... 3.7 5.3 6.6 7.0 6.1 8.3 9.4 9.3 11.8 10.3 12.5 13.8 14.6 12.6 8 9 Other loans............................... .4 .6 .3 .5 .7 .6 .5 1.0 1.0 1.0 1.1 1.3 1.6 1.9 9 10 Security credit.............................. . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 .2 .2 10 11 Miscellaneous assets.................... 6.8 7.4 8.0 8.9 9.0 9.6 10.4 11.4 12.2 12. 1 12.6 13.7 13.9 16.3 ll 12 Direct investment in U.S.......... 4.3 4.6 5.1 5.5 5.7 6.1 6.6 6.9 7.4 7.6 7.9 8.4 8.8 9.1 12 13 Dep. at agn. of fgn. banks....... 2.0 2.2 2.4 2.8 2.9 3.1 3.2 3.6 3.8 3.6 3.6 4.2 3.7 3.8 13 14 Fgn. branch claims on U.S. banks.................................... .6 .5 .6 .6 .3 .3 .5 .9 1.0 .9 1.0 1.1 1.4 3.4 14 15 Total liabilities................................. 34.1 36.1 38.2 42.9 48.2 52.3 55.7 60.8 65.2 70.4 77.6 86.1 94.2 100.1 15 16 Official U.S. foreign exchange and net IMF position...................... 1.4 1.2 1.0 1.6 2.0 2.0 2.0 1.6 1.8 1.2 1.2 1.2 1.6 1.6 16 17 Credit market instruments........... 15.3 15.8 16.2 16.9 18.2 19.9 20.5 22.4 24.6 27.1 30.5 35.3 38. 1 39.3 17 18 Bonds....................................... 2.4 2.7 2.7 2.9 3.3 3.9 4.3 4.9 5.4 6.3 7.3 8.2 9. 1 n.a. 18 19 Bank loans n.e.c....................... .7 1.0 1.4 1.8 2.1 2.6 2.9 3.0 3.7 4. 1 4.9 6.9 7.5 7.3 19 20 Other loans............................... 12.2 12.1 12.1 12.3 12.8 13.4 13.4 14.5 15.5 16.7 18.2 20.2 21.5 22.4 20 21 Security debt................................ . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 . 1 21 22 Miscellaneous............................... 17.4 19.0 20.9 24.3 28.0 30.3 33.0 36.8 38.6 42.0 45.8 49.5 54.3 59.1 22 23 U.S. capital subscription to IBRD, etc............................. .6 .6 .6 .7 .7 .7 .7 .8 1.0 l.l 1.2 1.2 1.3 1.3 23 24 U.S. direct invest, abroad........ 16.3 17.6 19.3 22.2 25.2 27.3 29.7 32.7 34.7 37.2 40.7 44.4 49.3 54.6 24 25 Fgn. currency held by U.S....... .5 .7 1.0 1.5 2.1 2.4 2.6 3.2 3.0 3.6 3.9 3.9 3.7 3.2 25 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-65.21 For foreign tables see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-66 U.S. BALANCE OF PAYMENTS □ FEBRUARY 1968 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1966 1967 Item 1964 1965 1966 II HI IV I 11 HR 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—Totall..................... 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 services1................................. 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 currency 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 selloff’s. . . . 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 1 1 Other specific transactions........................... 208 -25 -12 -4 13 -11 21 * -12 Other nonconvertible, nonmarketable, medium-term U.S. Govt, securities3................. -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. .,.4..5..4............ 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 Less: Net seasonal adjustments...................... 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

FEBRUARY 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 1 । 11 II III IV 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 in U.S. official reserve assets (increase, —)............................................. 17/ 1,222 568 68 82 -6 1,027 -419 -375 Gold............................................................ 125 41,665 571 209 173 121 51 15 92 Convertible currencies................................. -220 -349 -540 -163 -426 -173 1 ,007 -424 -462 IMF gold tranche position.......................... 266 4-94 537 22 335 46 -31 -10 -5 Change tn liquid liabilities to all foreign accounts 2,629 113 789 81 613 472 -789 641 1,583 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 notess. -58 -20 -245 6 -254 8 5 52 -6 Deposits, short-term U.S. Govt, securities, etc............................................ 757 -154 -582 206 -146 -31 -172 444 162 IMF (gold deposits)................................... 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 (see 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. 5 With original maturities over 1 year. 2 Excludes military grants. 3 Includes certificates sold abroad by,Export-Import Bank. Note.—Dept, of Commerce data. Minus sign indicates net payments 4 Reflects $259 million payment of gold portion of increased U.S. debits); absence of sign indicates net receipts (credits). subscription to IMF. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1964 1965 19663 19673 1964 1965 19663 19673 1964 1965 19663 19673 Month: Jan................. 2,040 4 1,228 2,264 2,616 1,418 41,199 1,918 2,256 622 4 28 347 360 Feb.................... 2,058 41,623 2,376 2,607 1,459 41,606 2,024 2,229 599 4 17 352 378 Mar................... 2,075 4 2,739 2,554 2,551 1,518 4 1,861 2,080 2,203 557 4878 474 349 Apr.................... 2,061 4 2,406 2,354 2,654 1 ,537 4 1,811 2,113 2,226 524 4 595 241 428 May.................. 2,047 4 2,299 2,416 2,547 1,530 4 1,797 2,082 2,140 517 4503 334 407 June.................. 2,077 4 2,235 2,487 2,577 1,514 41,848 2,142 2,227 563 4 386 346 349 July................... 2,119 2,300 2,455 2,584 1,573 51,742 2,178 2,208 546 5558 277 376 Aug................... 2,100 2,329 2,444 2,598 1,608 1,825 2,119 2,125 492 504 324 473 Sept................... 2,261 2,291 2,540 2,593 1,563 1,858 2,295 2,209 698 433 244 384 Oct.......... 2,156 2,349 2,588 2,392 1,551 1,885 2,250 2,202 605 464 338 191 Nov................... 2,206 2,378 2,503 2,692 1,698 1,941 2,186 2,376 4 508 438 317 317 Dec................... 2,426 2,362 2,409 2,604 1 ,642 1,911 2,225 2,525 4 784 451 184 79 Quarter: I 6,173 4 5,589 7,195 7,775 4,395 44,666 6,021 6,688 1,778 4 923 1,173 1 ,087 II...................... 6,185 4 6,940 7,257 7,777 4,581 45,456 6,336 6,593 1,604 4 1,484 921 1,184 HI............. 6,480 6,920 7,439 7,775 4,744 55,425 6,592 6,542 1,736 5 1,495 846 1 ,233 IV...................... 4 6,788 7,090 7,500 7,688 44,891 5,736 6,661 7,102 4 1,897 1,353 839 586 YeaU'....................... 25,671 26,700 29,379 30,942 18,684 21,366 25,542 26,8(6 6,987 5,334 3,837 4,126 1 Exports of domestic and foreign merchandise; excludes Dept, of 4 Significantly affected by strikes, Defense shipments of grant-aid military equipment and supplies under 5 Significantly affected by strikes and by change in statistical procedures. Mutual Security Program. ... . 6 Sum of unadjusted figures. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Note.—Bureau of the Census data. 3 All data for 1966, and for 1967-—except Dec., fourth-quarter, and the year total—-are revised. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-68 U.S. GOLD TRANSACTIONS AND RESERVE ASSETS □ FEBRUARY 1968 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Nel sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1966 1967 Area and country 1958 1959 1960 1961 1962 1963 1964 1965 1966 III IV I II III Western Europe: Austria.............................. -84 -83 -I -143 -82 -55 -100 -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 1 -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 -ll * * * Brazil................................ -11 -2 -2 57 72 54 25 -3 -1 * ♦ Colombia.......................... -6 38 10 29 7 Venezuela......................... 65 — 25 Other................................. 2 — 35 -42 -17 -5 -ll -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 -—- - - 1 -- 6 - -22 -4 --------- * —.—.—— 2 —.-- - -- 6 - — - 1 ■ ■ — ■ Total foreign countries......... -2,294 -998 -1,969 -970 -833 -392 -36 -1,322 -608 -172 -86 -36 12 -53 Inti. Monetary Fund........... 3 -44 4 300 150 ........... 5-225 6 177 6 29 .........6. .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. 5 Payment to the IMF of $259 million increase in U.S. gold subscription, 3 Payment to the IMF of $344 million increase in U.S. gold sub­ less gold deposits by the IMF. scription, less sale by the IMF of $300 million (see note 4). 6 Represents gold deposit by the IMF; see note 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 Reserve End of year r T a e s s o s e t e r a v ts l e Total 2 Treasury cu v fo r e r r r e e ti n i b g c l n i e e s p I o M s i i n F ti o 3 n End of month r T a e s s o s e t e r a v t l s e Total 2 Treasury v c fo c u e i r r r e e t r s i i e b g n 5 l n e ­ p I o M s i i n F ti o 3 n 1958....................... 22,540 20,582 20,534 1,958 1967—jan............. 14,196 13,202 13,157 645 349 1959....................... 21'504 191507 19356 1,997 Feb............ 13,998 13’161 13'107 480 357 Mar 13',855 13'184 13,107 314 357 1960....................... 19,359 17,804 17,767 1,555 Apr........ 13'906 131234 13'109 315 357 1961....................... 18,753 16,947 16,889 116 1,690 May........... 13'943 13,214 13,109 363 366 June........... 14'274 13,169 13,110 738 367 1962....................... 17,220 16,057 15,978 99 1,064 July........... 14'224 13'136 13'108 719 369 1963 ....................... 16,843 15'596 15,513 212 1,035 Aug............ 14’605 13^075 13'008 1,162 368 Sept............ 14'649 13'077 13'006 11200 372 1964....................... 16,672 15,471 15,388 432 769 Oct........ 14’927 13,039 12'905 I ,509 379 1965....................... 15|450 413,806 413,733 781 4 863 Nov........ 15'438 12*965 12,908 2,092 381 Dec.. ...... 14,830 12,065 11,982 2,345 420 1966....................... 14,882 13,235 13,159 1,321 326 1967....................... 14,830 12,065 11 ,982 2,345 420 1968—Jan............. 14,620 12,003 11 ,984 2,176 441 1 Includes (a) gold sold to the United States by the International Mon­ 4 Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6. U.S, gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund, 5 For holdings of F.R. Banks only, see pp. 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

FEBRUARY 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 d a io b y o n s o m ll c s f a e r r i i n s p n t ­ s by s g N I a o M l e l e d t s F i D c f r c o u a i r r ° w e e r C s i e i g n n 2 n g ­ s I i d M n o c F l i o n la m n rs e e t D d ra o w o 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 h o an ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 3 1946_.1957............................ 2,063 •» 594 -45 — 2,664 827 775 775 28 1 975 1958........................... -2 -252 271 17 792 29 1 958 1959........................... 1,031 2 -139 442 1 336 2,128 52 1 997 I960............................ 11 - 149 580 442 2,570 62 1 ’ 555 1961............................ 150 16 -822 521 —135 2’435 59 1 690 1962............................ 17 ~ 110 719 626 3’061 74 1 064 1963............................ 16 —194 207 29 3,090 75 1 035 1964........................... 525 18 -282 5 266 3,356 81 769 1965............................ 435 12 —282 165 3,521 85 5 863 1966............................ 776 680 15 - 159 1 I 313 4,834 94 326 1967........................... 20 -114 -94 4,740 92 420 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 93 367 July............................ I -3 -2 4’791 93 369 Aug........................... 2 -1 1 4,792 93 368 -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 1968—Jan............................. 3 -24 -21 4,719 91 441 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 4 Represents a $600 million IMF gold sale to United States (1957), IMF operations. Does not include transactions in gold relating to gold less $6 million gold purchase by IMF from another member with U.S. deposit or gold investment (see Table 6). dollars (1948). 2 Represents purchases from the IMF of currencies of other members 5 Includes $259 million gold subscription to the IMF in June 1965 for for equivalent amounts of dollars. The United States has a commitment a U.S. quota increase, which became effective on Feb. 23, 1966. In figures to repay drawings within 3 to 5 years, but only to the extent that the published by the IMF from June 1965 through Jan. 1966, this gold sub­ holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. scription was included in the U.S. gold stock and excluded from the Drawings of dollars by other countries reduce the U.S. commitment to reserve position. repay by an equivalent amount. 3 Represents the U.S. gold tranche position in the IMF (the U.S. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota minus the holdings of dollars of the IMF), which is the amount quota was increased to $4,125 million in 1959 and to $5,160 million in that the United States could draw in foreign currencies virtually automati­ Feb. 1966. Under the Articles of Agreement, subscription payments equal cally if needed. Under appropriate conditions, the United States could to the quota have been made 25 per cent in gold and 75 per cent in dollars. draw additional amounts equal to its quota. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-70 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ FEBRUARY 1968 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liabilities to Inti. Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions Official institutions 3 Banks and other foreigners regional organizations s Non­ pe E o r n i f o d d Total Gold Gold i S t l i t i e h e a s r b o m i r r l t e ­ ­ ­ M a U a b r . k S le e . t­ c m o a n a ib b r v l k l e e e e r t t ­ ­ i S t l i t i e h e a s r o b m i r r l t e ­ ­ ­ M a U a b r . k S le e . t­ i S t l i t i e h e a s r o b m i r r l t e ­ ­ ­ M a U a b r . k l S e e . t­ Total po d s e i ­ t 1 i m nv e e n s t t 2 ­ Total i p n b o a b r U n y t k e . S s d . n b G o a o o t n n e v d d s t * s , T b U o r u e n r .S a y d s . s ­ Total i p n b o a b r U n y t k e . S d s . b n G o o a o n n te v d d s t s , * Total in p b o a U b r n y t . k e S d s . s n b G o a o o n t n e v d d s t s * , and 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. 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 22,853 800 800 11,830 10,940 890 8,275 7,759 516 1,948 703 1,245 19618 22,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1,245 19628 2 2 4 4 , , 0 0 6 6 8 8 8 8 0 0 0 0 8 8 0 00 0 1 1 2 2 , , 7 7 4 1 8 4 1 11 1 , , 9 9 6 9 3 7 7 7 5 5 1 1 8 8, , 3 3 5 5 9 9 7 7 , , 9 9 1 1 1 1 4 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1 1 , , 2 2 5 8 0 4 9 9 1 11 1 19638 2 2 6 6 , , 3 3 6 2 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 14 4 , , 3 3 5 8 3 7 1 1 2 2 , , 4 4 6 6 7 7 1 1, , 1 2 8 1 3 7 7 7 0 0 3 3 9 9 , , 2 2 1 0 4 4 8 8 , , 8 8 6 6 3 3 3 3 4 51 1 1 1, , 9 9 6 6 5 0 8 8 0 0 8 8 1 1, , 1 1 5 5 7 2 28,951 800 800 15,428 13,224 1,125 1 ,079 11,001 10,625 376 1,722 818 904 19648 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—Nov. 30,548 1 ,011 211 800 14,018 12,953 860 205 14,546 14,027 519 973 612 361 Dec. 8 129,904 1 ,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 \29,781 1 ,011 211 800 13,656 12,540 860 256 14,208 13,680 528 906 581 325 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 Apr... 29,381 1 ,030 230 800 14,106 12,877 901 328 13,382 12,853 529 863 630 233 May.. 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... 32,430 1,033 233 800 14,910 13,398 91 ! 601 15,765 15,204 561 722 515 207 . Nov. v 33,812 1 ,033 233 800 15,958 14,339 908 711 16,069 15,522 547 752 548 204 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 fine are comparable creases. with those shown for the following date. 2 U.S. Govt, obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States Note.—Based on Treasury Dept, data and on data reported to the to acquire income-earning assets. Upon termination of investment, the Treasury Dept, by banks and brokers in the United States. Data correspond same quantity of gold can be reacquired by the IMF. to statistics following in this section, except for minor rounding differences. 3 Includes Bank for International Settlements and European Fund. Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury ^ Derived by applying reported transactions to benchmark data; letters of credit and non-negotiable, non-interest-bearing special U.S. breakdown of transactions by type of holder estimated for 1960-63. notes held by other international and regional organizations. Includes securities issued by corporations and other agencies of the U.S. The liabilities figures are used by the Dept, of Commerce in the statistics Govt, that are guaranteed by the United States. measuring the U.S. balance of international payments on the liquidity 5 Principally the International Bank for Reconstruction and Develop­ basis; however, the balance of payments statistics include certain adjust­ ment and the Inter-American Development Bank. ments to Treasury data prior to 1963 and some rounding differences, and 6 Includes difference between cost value and face value of securities in they may differ because revisions of Treasury data have been incorporated IMF gold investment account. Liabilities data reported to the Treasury at varying times. The table does not include certain nonliquid liabilities include the face value of these securities, but in this table the cost value of to foreign official institutions that enter into the calculation of the official the securities is included under “Gold investment.” The difference, which reserve transactions balance by the Dept, of Commerce. amounted to $32 million at the end of 1966, is included in this column. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for which breakdown by type of holder is not available. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 g r l i n e s E W u e ro st p e e rn t Canada A re m p L u e a b r ti i l n c ic a 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................................................................................... 15,424 9,220 1,608 1 ,*238 3,020 160 178 1965.............................................................................. 15’372 8 '608 1,528 1 497 3 300 194 245 1966—Nov......................................................................... 14,018 7,758 1 ,212 1,101 3,430 293 224 Dec.5................................................................. /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 I 139 3 260 276 241 Feb.......................................................................... 13,355 7 285 1,134 1’167 3*271 255 243 Mar................................................................ 13^561 7 493 1 J 27 1 '246 3 210 259 226 Apr........................................................................ 14,106 7 832 1,156 1 455 3,150 284 229 May....................-......................................... 14 383 8 017 I 154 1 *508 3 184 284 236 June........................................................................ 14,103 8,216 909 1 *290 3’158 270 260 July........................................................................ 14,174 8,299 909 1 *317 3,171 246 232 Aug........................................................................ 14 076 8^360 912 I ’189 3 124 252 239 Sept......................................................................... 14,381 8’649 903 1’186 3*173 223 247 Oct................................................... 14,910 9’065 968 1 222 3 173 225 257 Nov.?...................................................................... 15,958 10^57 901 1 ;270 3,056 220 254 1 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 o d n e t n h c e ie t s w i o n L lin a e ti 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 ou at n a t ri r e e s p , r a e s 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 l n i t t i h es e t U o n t i h te e d o S f t f a ic te ia s l , a in n s d t i 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. SHORTTERM 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 i o o d f G to r t a a n l d 1 Total i Intl.i gi R on e a ­ l2 Total c O i f a f l i­ 3 Other Europe Canada A L m a e t r in ic a Asia Africa c O t o r t i u h e n e s ­ r 1963.. .................... 22,877 1,547 1 ,411 136 21,330 12,467 8,863 10,770 2,988 3 137 4 001 241 194 19644.......................... 25^518 1,618 1 447 171 23,900 13,220 10,680 12,236 2,984 3,563 4,687 238 192 1965............................ 25^551 1,479 1’361 118 24*072 13*066 11 006 11,627 2'574 4 027 5,286 280 278 1966—Dec. 5.............. /27,724 1,381 1,270 111 26,343 12,484 13,859 14,000 2,509 3,883 5,299 387 266 (27,601 1,381 1,270 111 26,220 12,540 13,680 13,933 2,502 3,883 5,252 385 266 1967—Jan................... 26,731 I 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 5 143 379 284 Mar.................. 26,809 1 438 1 '315 123 25 371 12,368 13 003 13,311 2*265 4*063 5 095 357 278 Apr.................. 27,160 1 430 1 *311 119 25,730 12 877 12,853 13,406 2*298 4,273 5 089 389 275 May................. 27 355 1 407 1 287 120 25 948 13*118 12,830 13,424 2 329 4,366 5*160 392 277 June................. 27,341 I 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 1 *296 113 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 14*393 14 935 2^266 4’619 5 246 366 277 Sept.................. 28 816 1 329 I *205 124 27 ,’487 12*971 14 516 15,116 2 329 4 047 5^372 328 296 Oct................... 29 917 1 315 1 ’ 187 128 28 602 13 398 15 204 15 788 2*688 4 129 5 358 329 309 Nov.?............... 31,209 1,348 1 '217 131 29,861 14 339 15*522 17,100 2^613 4,229 5 *289 324 306 Dec.?............... 30,688 1,293 1,180 113 29,395 14,086 15,309 16’350 2,706 4^47 5,543 339 310 8a. Europe Ger­ E p n er d i o o d f Total Austria Belgium D m e a n rk ­ F la 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 J14,000 196 420 305 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....... 15,788 176 618 211 98 1,080 2,221 161 1 ,993 494 379 409 158 634 Nov.?,.. 17,100 184 605 201 99 1 ,431 2,276 161 1,999 542 389 414 130 493 Dec.?... 16,350 231 600 243 99 1 ,327 2,218 170 1 ,948 585 449 437 150 489 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. □ FEBRUARY 1968 8. SHORTTERM 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 i n tz d er­ Turkey U K d n o i i n m te 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 6 U.S.S.R. E E O a u s t r h t o e e p r r n e Total A t r i g n e a n­ Brazil Chile Co b l i o a m­ Cuba Mexico 1963................ 906 21 1,483 16 465 7 24 3,137 375 179 143 169 11 669 1964................ 1,370 36 1 ,RR4 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 J1,805 43 3,839 37 235 8 40 3,883 418 299 261 178 8 632 1966 Opr 5 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 4,851 25 585 6 33 4,129 581 263 222 151 10 689 Nov?’... 1,643 44 5,931 26 491 4 37 4,229 594 273 230 158 9 707 Dec.*... 1 ,723 33 4,839 23 736 8 44 4,147 485 237 252 169 9 724 8b. Latin America—Continued E pe n r d io o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ O L 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 l i l n t e h a s . m & A O L m a t e h t r i e n ic r a Total C M la h a n i i n d n a ­ H K o o n n g g India n d I e n o s ­ i ­ a Israel 1963................ 129 158 113 591 355 136 93 15 4,001 35 66 51 48 112 1964................ 99 206 111 734 416 189 114 14 4,687 15 95 59 38 133 1965................. 120 257 137 738 519 165 113 17 5,286 35 113 84 31 127 1966 Dec 5 /150 249 161 707 522 177 104 17 5,299 36 142 180 54 117 1150 249 161 707 522 177 104 17 5,252 36 142 179 54 117 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 J 43 36 140 206 51 113 Mar.. . . 152 257 168 704 563 184 107 19 5,095 36 142 205 46 100 Apr..... 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 J’... 181 264 137 792 520 235 111 20 5,289 35 209 250 39 151 Dec. p... 170 274 147 795 520 233 1 12 22 5,543 35 215 354 34 140 8c. Asia—Continued 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 a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) ro M c o co ­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h i e c r a Total t A ra u l s ia ­ o A th U e r 1963................... 2,484 113 209 149 382 353 241 26 49 41 14 112 1 94 180 1 3 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—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 1 3 33 61 33 ">50 285 262 23 Feb......... 2,512 181 271 232 635 766 379 13 31 62 22 251 284 258 26 2,500 178 255 229 658 748 357 13 32 5R 34 220 278 252 26 Apr......... 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 1 l 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.n.. , . 2,462 203 286 221 629 802 324 13 26 63 17 205 306 276 30 Dec.7'. ... 2,567 191 291 227 630 858 339 33 18 60 16 213 310 283 27 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 arc 3 Foreign central banks and foreign central govts, and their agencies, comparable with those shown for the following date. and Bank for International Settlements and European Fund. 6 Includes Bank for International Settlements and European Fund. * 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

FEBRUARY 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 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 Paraguay............................. 13.8 15.0 14.9 16.6 Ethiopia, (inch Eritrea)........ 44.1 58.9 53,5 40.2 Trinidad & Tobago,................... 3.6 6.3 4.7 5.4 Ghana....................................... 2.6 2.9 6.9 5.3 Liberia...................................... 17.9 19.7 21.2 21.6 Other Latin America: Libya. ........................... 34,8 26.7 37.1 76.0 British West Indies................. 11.5 8.9 14.6 14.2 Mozambique............................. 1.6 1.7 5.0 French West Indies & French Nigeria...................................... 21.7 20.3 25,7 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 Zambia...................................... 7.2 16.1 34.7 n.a. Cambodia. ................................. 2.7 3.1 l.l 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 ? 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 l i i t ti i e es s m ar a e t u p ri r n in g 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 a n ( d 1 e m y a e n a d r 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 a n n g d -t e t r h m e I l n ia t b er il n it a i t e i s o , n s a e l e D T e a v b e le lo p 14 m . 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 4.............................. 25318 22,051 6’684 3,990 8,727 2,650 3377 1’531 1,271 72 503 90 1965. 25351 21 '905 6,518 3,963 8’269 3,155 3*587 1374 1 '594 87 332 59 1966-—Dec, 5.................... / 1 2 2 7 7 , , 7 6 2 01 4 2 2 3 3 , , 3 2 7 6 1 7 8 8 , , 5 3 3 7 1 1 4 4 , , 0 0 0 5 0 0 7 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 81 1 9 9 8 83 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 1 312 1 .845 89 330 507 Mar...................... 26,809 22384 7,463 3 669 7 910 3,442 3,822 1 356 1 ,853 79 334 504 Apr....................... 27’160 22330 7 469 3 589 8.277 3’495 3,783 1 335 I 345 73 330 546 May............... 27,355 23,010 7 656 3 479 8 253 3,622 3,823 I 378 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 ,760 7,891 3,628 3313 1 ’580 1 371 66 296 503 Aug....................... 28’488 24'225 8,915 3,745 7396 3,668 3331 1 315 1,916 69 331 432 Sept....................... 28’816 24,530 9’044 3’809 8,035 3’642 3’907 1 ,579 1 ,937 76 315 379 Oct........................ 29'917 25'653 9 346 3 ,964 8’117 3 '726 3’983 1 377 1,989 84 332 282 Nov.p.................... 31,209 26,906 9,994 3,860 9,442 3,609 4,072 1 330 2,035 72 335 231 Dec J*.................... 30’688 26351 10,047 3,793 9,095 3317 4,108 1 387 2,042 78 302 229 1 Data exclude “holdings of dollars” of the International Monetary follows (in millions of dollars): Total +50; foreign banks, etc. +55; Fund. other foreigners +23; payable in foreign currencies —28. 2 Excludes negotiable time certificates of deposit, which are included 5 Data on the two 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. □ FEBRUARY 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 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.’’ Dec.” Europe: Austria............................. 3 3 3 3 3 3 3 Denmark........................ 14 13 13 13 12 12 12 12 12 12 12 12 12 12 France............................... 7 7 7 7 7 7 7 6 6 6 7 7 Germany........................... 2 Italy................................... 2 2 2 2 2 2 9 9 9 9 9 9 9 Netherlands..................... 6 5 5 5 5 5 4 4 4 4 5 5 Norway............................ 49 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 Sweden............................. 24 24 24 24 24 24 24 24 24 24 24 24 24 24 Switzerland....................... 89 93 92 93 93 92 91 90 88 87 87 91 91 91 United Kingdom.............. 553 348 350 353 353 355 359 364 368 375 379 383 371 380 Other Western Europe.... 51 49 49 49 50 50 50 50 50 51 51 51 51 51 Eastern Europe................ 7 7 7 7 7 7 7 7 7 7 7 7 Total 807 605 606 610 609 611 613 624 626 633 637 646 634 643 Canada 676 692 692 695 695 722 719 716 717 717 718 716 715 716 Latin America: Latin American republics.. 6 8 8 8 8 7 7 6 6 6 6 6 6 6 Other Latin America.,.... 21 19 18 18 18 18 18 18 18 18 18 18 18 18 Total 27 25 24 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 53 53 54 54 54 54 54 54 Total 51 50 50 51 50 50 62 62 63 63 63 63 63 63 Africa 16 15 15 15 15 23 28 28 28 22 22 22 19 19 Other countries Total foreign countries, 1,577 1,388 1,388 1,395 1,395 1 ,430 1 ,446 1,455 1,458 1,459 1 ,463 1,472 1 ,455 1 ,466 International and regional: International................. 679 250 228 187 172 172 172 172 169 169 169 169 169 168 Latin American regional... 74 75 76 60 60 60 61 57 58 38 38 38 35 35 Other regional.............. Total 752 325 304 247 232 233 234 230 227 207 207 207 204 204 Grand total 2,329 1,713 1,692 1 ,642 1,627 1,663 1,680 1 ,685 1,685 1,666 1,671 1 ,679 1,659 1 ,670 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 i n tz d er­ B.I.S. 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...................... 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 ............... 784 349 144 180 25 434 25 151 125 133 ............... June........... 809 349 144 180 25 460 25 151 125 159 July............ 934 349 144 180 25 585 25 276 125 159 Aug............ 1,007 347 144 178 25 660 50 326 125 159 Sept............ 1,257 546 ■ 344 178 25 710 50 376 125 159 Oct........ 1383 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 1968—Jan............. 1 ,484 312 114 173 25 1,172 50 60 726 125 211 ............... 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

FEBRUARY 1968 n 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 to ra ta n l d I r n e t g i i , o a n n a d l Europe Canada A L m a e t r in ic a Asia Africa co O un th tr e ie r s 1963 ............................................................................. 5,975 1 939 638 1,742 2,493 104 1964............................................................................. 7,469 1 1,217 725 2’212 3,137 120 58 19641.......................................................................... 7,957 1 230 1,004 2,235 3,294 131 5R 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 8 3 8 3 3 , , 3 3 4 5 3 8 1 1 3 3 9 9 6 67 4 67 1966—Dec.2................................................................ / 1 7 7 . , 8 84 I 1 9 1 1 1 t , , 3 3 6 6 7 6 6 6 0 2 8 0 2 2 , , 4 4 8 5 9 2 3 3 , , 1 2 3 0 5 6 1 1 4 4 7 7 6 6 2 2 1967—Jan.................................................................. 7,682 1 283 597 2,448 3,166 128 60 Feb................................................................ 7,676 1 1 *238 626 2,465 3,152 132 62 Mar........................................................... 7,862 1 i ’252 614 2 508 3,278 148 62 Apr................................................................... 7,948 * 1*268 625 2*468 3 387 139 62 May.................................................................. 8,102 1 1,298 594 2*516 3,497 133 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 8,328 1 *309 562 2*579 3 692 115 71 Oct......................................................... 8,266 1 *256 575 2*554 3*704 108 70 Nov.p................................................................ 8,343 1 ’202 569 2’603 3,791 107 71 Dec.1’............................................................. 8,592 * 1 ’233 611 2,708 3,871 101 67 12a. Europe End of period Total A tr u ia s­ g B iu e m l­ m De ar n k ­ l F a i n n d ­ France G Fe e d r o . m f R an e y p , . Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o ga r­ l Spain S d w en e­ 1963............................... 939 8 26 13 52 70 121 9 97 33 40 14 26 30 1964............................... 1,217 10 42 28 85 79 159 9 109 39 43 19 40 47 19641......1..,.2..3..0...........1.1.... 48 26 84 81 152 10 114 36 43 23 40 49 19652............................. (1,201 8 52 37 87 72 190 13 110 38 51 26 50 52 (1,208 8 52 37 87 72 190 13 110 38 51 26 50 52 1966—Dec.2.................. (1,366 16 67 62 91 73 215 16 108 40 76 41 67 74 l1>367 16 67 62 91 74 227 16 108 40 76 41 67 75 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 10O 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................. 1,256 10 72 36 85 58 198 20 78 31 52 24 56 71 Nov.p......... 1,202 10 63 48 83 71 170 18 69 49 57 14 53 67 Dec.’’.................. 1,233 17 66 37 78 88 176 19 58 35 61 26 54 79 12a. Europe—Continued 12b. Latin America End of period S l w a e n r i ­ t d z­ T k u ey r­ U K d n i o n i m t g e ­ d Y sl u av g i o a ­ W E O u e t r s h o t e p e r r e n U.S.S.R. E E O u as t r h o te e p r r e n Total A t r i g n e a n­ Brazil Chile l C o bi 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 19652............................ 42 210 28 28 6 27 2’288 232 94 174 270 16 669 173 42 216 28 28 6 27 2,293 232 94 174 270 16 674 1966—Dec.2................. £83 52 210 19 37 2 16 2,489 193 114 159 308 16 767 (88 52 191 19 37 2 16 2,452 187 112 158 305 16 757 1967—Jan..................... 80 50 217 23 39 2 17 2,448 179 117 151 293 16 785 Feb..................... 82 27 206 22 39 2 17 2 465 169 120 149 285 16 817 Mar.................... 81 37 213 22 39 I 20 2 508 180 125 146 274 16 853 Apr............... 81 47 210 23 42 1 20 2*468 181 121 150 249 16 837 May.................... 84 37 263 24 32 21 2,516 175 123 153 232 16 877 June................... 86 38 268 24 31 22 2^545 185 116 155 223 16 861 July.................... 102 39 232 25 33 22 2^574 185 115 161 239 16 913 Aug............. 119 47 321 22 28 * 24 21589 185 117 160 243 16 943 Sept.................... 110 49 284 23 36 2 20 2,579 189 118 170 244 16 944 Oct.................... 117 34 242 19 33 * 19 2,554 199 124 172 227 16 929 Nov.p................. 110 23 225 19 34 19 2'603 208 136 175 227 16 910 Dec.p................. 95 38 242 1 3 30 3 18 21708 221 173 179 217 16 959 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. □ FEBRUARY 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 pe n r d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ r l e L ic p . s A ub . ­ m m B u & e a d r s a ­ A S n n u a t & i m r l i l ­ es A L m a ic t a i e n 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 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 47 159 170 45 220 250 53 14 23 3^343 I 29 17 2 86 159 170 45 220 250 53 14 23 3,358 29 17 2 86 184 211 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 IS 3,278 1 33 13 5 96 Apr....... 75 238 59 200 248 61 17 16 3,387 1 31 14 5 89 May.... 75 262 60 217 241 51 18 16 3,497 1 35 14 5 94 June.... 69 285 64 210 248 78 17 18 3,640 1 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 I 36 12 5 59 Oct....... 53 236 43 211 266 49 9 19 3,704 1 36 ll 6 59 NovJ’,.. 55 248 46 21 1 284 54 10 24 3,791 2 29 11 6 58 Dec J'... 47 249 42 226 289 63 10 18 3.871 1 27 10 5 57 12c. Asia—Continued 12d. Africa 12c. Other countries End of period Japan Korea P p h i i n l e ip s ­ T w a a i n ­ T la h n a d i­ O A 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 i t c h 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 I 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....................... P,751 22 231 15 82 108 139 1 2 34 43 60 67 52 15 )2,768 22 230 15 82 107 139 1 2 34 43 60 6 7 52 15 1966—Dec. 2........... /2,502 31 220 14 81 134 147 1 2 50 25 69 62 52 10 (2,572 31 220 15 81 135 147 2 50 25 69 62 52 10 1967—Jan............... 2,491 33 233 23 83 151 128 * 3 38 18 68 60 51 9 Feb............... 2,486 34 228 26 86 137 132 4 43 15 71 62 53 8 Mar.............. 2,611 38 232 30 89 131 148 1 2 42 30 73 62 53 9 Apr............... 2,716 52 245 33 84 116 139 * 2 37 26 74 62 53 9 May........ 2'828 44 250 30 83 114 133 5 34 31 63 63 52 11 J une............. 2,939 49 270 27 87 122 127 1 2 30 27 66 71 60 12 July.......... 2 909 55 289 29 81 116 117 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............... 2,986 48 323 27 84 124 108 35 18 53 70 57 1 J NovJ\ ...... 3,062 46 326 31 90 131 107 I 2 37 14 54 71 58 13 Dec.'1........... 3,147 59 294 37 99 135 I0J 1 2 37 1 1 50 67 54 13 1 Differs from data in line above because of the exclusion as of Dec. 31, Note,—Short-term claims are principally the following items payable 1964, of $58 million of short-term U.S. Govt, claims previously included; on demand or with a contractual maturity of not more than 1 year: loans and because of the addition of $546 million of short-term claims arising made to, and acceptances made for, foreigners; drafts drawn against from the inclusion of claims previously held but first reported as of Dec. foreigners, where collection is being made by banks and bankers for 31, 1964; and because of revision of preliminary data. their own account or for account of their customers in the United States; 2 Data on the two lines shown for this date differ because of changes in and foreign currency balances held abroad by banks and bankers and reporting coverage. Figures on the first line are comparable in coverage their customers in the United States. Excludes foreign currencies held with those shown for the preceding date; figures on the second line are by U.S. monetary authorities. comparable with those shown for the following date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 ll n t e ­ s c ­ fo a m r n a a c d c e e c s t , Other Total D w e it p h o s fo it r s ­ g c c o u o v ri r t t n , i ) e 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 i f g n f e o r 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 J 50 1,135 2,621 803 624 336 187 102 1965 3.......................... /7;632 7,158 2^967 271 1 366 1 J30 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—Dec. 3............... (7,819 7,399 3,138 256 1 ,739 1,143 1,367 2,450 443 420 240 70 110 \7,84l 7,421 3,140 256 1 ,739 1 ,145 1 ,288 2,540 452 420 241 70 1 10 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 2,969 219 I ’,579 1,151 1,292 2 ’, 566 440 410 248 70 92 Mar.................. 7,862 7,439 3'023 252 1 ^ii 1,160 1,356 2,628 432 423 275 50 97 Apr................... 7’948 7 528 2^969 271 1 '536 1’162 1 '352 2’719 467 421 256 77 88 May................. 8,102 7,689 2,927 246 I ,557 1,125 1 ,385 2,914 462 413 263 62 89 June................. 8'253 7 854 2^917 253 I '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.................. 8,266 7,833 2,981 270 1 ,556 1,156 1 456 2 899 496 433 293 61 79 Nov.p............... 8^343 7,933 3,034 264 I '566 1,204 1 ,508 2,942 450 410 269 71 70 Dec. ”............... 8^92 8,167 3’148 306 1 '603 1,239 1 ,507 3,016 496 425 288 74 63 1 Includes central banks. of Dec. 31, 1964; and because of revision of preliminary data. 2 Differs from data in line above because of the exclusion, as of Dec. 3 Data on the two lines shown for this date differ because of changes in 31, 1964, of $58 million of short-term U.S, Govt, claims previously in­ reporting coverage. Figures on the first line are comparable in coverage cluded; because of the addition of $546 million of short-term claims with those shown for the preceding date; figures on the second line are arising from the inclusion of claims previously held, but first reported as comparable with those shown for the following date. 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area End af period Total F c o t o r r i u e e i n s g ­ n n re I a g n a ti i n t o o e d n n r ­ a a l l Total P L a o y a a n b s le in d A ol l l l a rs P fo a c r y i u e n a i r b g ­ l n e U K d n o in i m t g ed ­ E O u t r h o e p r e Canada A L m a e 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 1964 2 ( ( 3 3 0 1 6 0 2 2 0 0 0 4 1 1 0 0 6 6 4 3 , ,9 2 7 8 1 5 3 3; , 9 7 9 7 5 7 2 1 8 9 8 5 1 7 8 7 7 1 1 , , 6 6 1 3 1 2 2 32 7 7 3 1 1 , J 2 6 7 2 5 3 4 8 3 5 0 2 2 5 3 5 8 2 2 2 7 7 8 1965._ 513 203 311 4,517 4,211 297 9 86 1,518 346 1 ,296 445 391 436 1966—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 I ,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 I ,499 171 392 518 Oct....... 2,261 1,631 630 3,976 3,690 271 15 52 869 365 1 ,533 204 405 548 Nov.?... 2,256 1,596 659 3,958 3,674 267 17 51 837 365 1,554 193 412 546 Dec.?... 2,459 1,781 678 3,896 3,610 270 15 56 720 413 1 ,555 179 433 538 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. □ FEBRUARY 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 ti p e o s r a 2 te Foreign bonds Foreign stocks Net purchases or sales Period Inti, Foreign ch P a 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 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 1967 » -43 -121 78 45 33 10,1 69 9,121 1 ,048 2,025 3,170 -1 ,145 866 978 -112 1966—Dec. -27 — 36 9 563 542 21 152 151 1 85 53 31 1967—Jan.. . -21 -21 571 527 44 1 12 264 -152 71 63 8 Feb... -50 -57 7 5 2 579 557 23 98 168 -69 66 55 11 Mar.. -15 775 718 57 215 265 -50 75 68 7 Apr... 35 35 35 700 563 137 154 259 -105 67 55 12 May.. 17 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 -6 7 877 793 84 147 225 -78 67 106 -39 Sept.. 5 5 5 1,108 858 250 350 481 -131 81 125 -44 Oct.. . 9 8 8 960 1,148 -188 195 326 -131 77 91 -14 Nov.p -20 -4 -16 -14 849 885 -36 112 146 -34 75 89 -14 Dec?’. 10 10 10 966 752 213 122 250 -128 80 91 -11 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Note.—Statistics include transactions of international and regional official institutions of foreign countries; see Table 11. organizations. 2 Includes State and local govt, securities, and securities of U.S. Govt, agencies and corporations that are not guaranteed by the United States. 16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE SECURITIES, BY TYPE OF SECURITY AND BY COUNTRY (In millions of dollars) Type of security Country or area Period Total Stocks Bonds France S l z a w e n r i d ­ t­ U K d n o in i m t g ed ­ E O u t r h o e p r e E T u o ro ta p l e Canada A L i m a c t a i e n r ­ Asia Africa c O t o r t i u h e n e s r ­ reg I a n i n o t d i n , al 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 4 251 1967 ^......... 1 ,048 737 '311 183 410 -451 217 359 308 1 15 79 34 17 136 1966—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 I 3 Mar. . 57 -8 65 10 5 12 18 45 * 9 8 * * -5 Apr... 137 66 71 8 34 -3 13 51 8 5 * 1 72 May.. 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 r-10 r31 139 28 3 6 24 1 2 Aug. . 84 71 13 ll 29 5 -4 41 25 9 * 1 8 Sept.. 250 142 108 37 49 15 24 125 42 15 8 1 60 Oct.. . -188 58 -246 12 47 -302 28 -213 6 24 3 -8 Nov.p. -36 145 -182 9 62 -221 32 -118 49 8 11 ♦ 11 3 Dec.^. 213 130 83 12 63 13 29 117 30 44 23 * 3 -4 Note.—Statistics include State and local govt, securities, and securities 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

FEBRUARY 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) Period Total g I a i r n o n e n t d ­ i a , l c T e t f o r o i o i u g t e r n a n ­ s l ­ 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 r A ic f a ­ O c t o r t i u h e n e s r ­ E pe n r d io o d f Deposits U.S. A G ss o e v ts t , i n c E us a t r o m d a y rked securities1 gold 1964.................. -728 -140 -588 163 -670 -36 -77 7 25 1965.................. -953 -164 -788 108 -659 -55 -131 3 -54 1964............ 229 8,389 12,698 1966.................. -685 -171 -514 214 -726 -9 -7 16 -2 1965............. 150 8'272 12.896 1967 v............... -1,257 -393 -864 53 -776 38 -138 -14 -27 1966............. 174 7,036 12 946 1966—Dec........ 32 2 30 20 17 -12 -10 * 15 1967—Jan.... 148 7,141 12,96! 1967—j F a e n b . . . . . . . . . . . . . . . . . -1 -5 4 9 4 -52 6 - - 6 9 5 2 - 1 8 3 - - 8 6 0 2 2 6 - - 7 2 * — 21 1 F M A e p a b r r . . . . . . . . . 1 1 13 4 2 1 5 3 7 7 7 , , , 9 3 5 1 3 4 2 4 7 1 1 12 2 2 , , , 9 9 9 7 8 7 5 4 2 J J S O N M A A M u u e c o p u n l a p a t y v r g y r e t . . . . . . . . . . . . . . p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - 1 1 1 1 - - - - - 4 8 4 9 3 7 1 7 4 8 3 3 9 0 5 5 7 4 - - - - - - 8 4 9 3 - 7 1 - 1 9 I 7 3 4 7 2 4 3 - - - 1 1 1 - - - - 7 1 7 3 5 0 6 4 1 5 2 8 7 3 2 4 1 -2 - - 2 2 2 H 4 4 3 2 2 7 2 7 - - - 1 1 1 - - - - 5 4 5 2 2 0 1 1 1 1 5 3 7 4 2 1 -2 - 2 1 6 3 9 2 3 5 3 3 - - - - 3 5 4 - - - H 2 5 5 9 1 8 4 8 5 -1 - -8 I 2 6 * * 1 1 1 - - 1 1 1 0 8 1 2 2 2 2 2 1 J J S O A N M D u u e c u e o l n a p y c t g v y e . t . . . . . . , . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 1 3 1 6 9 3 4 4 1 5 3 7 8 5 7 4 7 7 7 7 9 9 7 7 7 , , , , , , , , 8 7 6 5 2 5 6 4 6 3 9 6 5 2 6 5 1 5 9 5 8 3 7 6 1 1 1 1 1 1 1 1 2 3 2 3 3 2 2 2 , , , , , , , , 9 2 9 0 0 9 9 9 9 5 7 0 3 7 7 9 3 3 7 0 2 2 6 2 Dec7\ ... -139 -4 -135 -13 -126 2 1 * * 1968—Jan.... 160 8,861 13,201 1 U.S. Treasury bills, certificates of indebtedness, notes, and bonds; includes securities payable in foreign currencies. Note.—Excludes deposits and U.S. Govt, securities held for international organizations. Earmarked gold is gold held for foreign and international accounts and is not included in the gold stock of the United States. Notes to Tables 3-21 Note.—The tables in this section (Nos. 3-21) provide Data on short-term liabilities to foreigners shown in data on U.S. reserve assets and liabilities and other sta­ Tables 8 and 9 (formerly Tables 1 and 2) were revised to tistics related to the U.S. balance of payments; see Table exclude the holdings of dollars by the IMF derived from 1. A number of changes were introduced in the May 1967 payments of the U.S. subscription and from the exchange issue of the Bulletin to increase the usefulness of this transactions and other operations of the IMF. (Liabilities section. representing the “gold investment” of the IMF continue At that time the table showing the U.S. gold stock and to be included.) This change in the treatment of the holdings of convertible foreign currencies (now Table 4) “holdings of dollars” of the IMF is related to the revision was revised to include in the reserve assets of the United of the table on U.S. monetary reserve assets (Table 4) to States its reserve position in the International Monetary include the U.S. reserve position in the IMF. The “hold­ Fund. In accordance with IMF policies, the United ings of dollars” of the IMF do not represent liabilities to States has the right to draw foreign currencies equivalent foreigners in the same sense as do other reported liabili­ to this amount virtually automatically if needed. (Under ties to foreigners. They are more accurately viewed as appropriate conditions the United States could draw contingent liabilities, since they represent essentially the additional amounts equal to the U.S. quota of $5,160 amount of dollars available for drawings from the IMF million.) This presentation corresponds to the treatment by other member countries. Changes in these holdings of U.S. monetary reserves in the U.S. balance of pay­ (arising from U.S. drawings and repayments of foreign ments. currencies, from drawings and repayments of dollars Table 5 shows the factors that affect the U.S. position by other countries, and from other dollar operations of in the IMF. the IMF) give rise to equal and opposite changes in the Table 6 brings together the various statistical compo­ U.S. gold tranche position in the IMF. In the absence of nents of the liabilities that enter into the U.S. balance of U.S. lending to the IMF, the gold tranche position is payments calculated on the liquidity basis. The inclu­ equal to the U.S. reserve position in the IMF. Since the sion of the U.S. reserve position in the IMF in Table 4 reserve position is included in U.S. reserve assets, it is requires that the “holdings of dollars” of the IMF be necessary, in order to avoid double-counting, to exclude excluded from the data on liabilities to foreigners, in the “holdings of dollars” of the IMF from U.S. liabilities order to avoid double counting. For further explanation to foreigners. The revised presentation conforms to the of this change in the liabilities statistics, see next to last treatment of these items in the U.S. balance of payments paragraph. and the international investment position of the United Table 7 (formerly Table 1), presenting an area break­ States. down of U.S. liquid liabilities to official institutions of Table 10 shows estimated foreign holdings of market­ foreign countries, was revised to include holdings of able U.S. Govt, bonds and notes. convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ FEBRUARY 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 Sept, Dec. Mar. June Sept.” Sept. Dec. Mar. June Sept J* Europe: Austria............................................. 3 2 2 2 2 7 8 8 9 7 Belgium................................................ 30 32 34 28 32 42 53 63 39 45 Denmark.............................................. 2 3 5 8 8 10 14 11 10 9 1 1 1 2 2 4 4 4 5 6 France................................................. 57 62 61 55 61 102 110 122 102 99 Germany, Fed. Rep. of........................ 81 78 81 85 94 120 127 122 122 118 Greece.................................................. 2 2 2 2 3 15 15 17 18 20 Italy..................................................... 52 54 62 65 66 107 101 98 80 93 Netherlands......................................... 67 68 80 78 82 42 48 45 47 45 Norway............................................... 2 2 2 3 3 9 8 7 7 8 Portugal............................................... 6 9 7 5 6 6 7 6 7 6 Spain................................................... 25 27 30 36 35 51 61 76 62 78 Sweden................................................. 14 17 19 21 24 27 36 18 18 20 Switzerland.......................................... 58 58 47 51 84 22 18 26 24 24 Turkey.................................................. 4 2 2 2 2 6 6 7 9 8 United Kingdom................................. 201 208 236 234 312 599 579 646 577 542 Yugoslavia.......................................... 2 I 1 1 4 4 4 3 3 Other Western Europe........................ 3 4 5 5 3 9 11 12 13 13 Eastern Europe.................................... 1 1 I 1 1 3 2 3 5 4 Total............................................. 611 631 678 682 820 1,185 1,212 1,296 1,158 1,147 Canada................................................ 138 146 173 199 190 509 489 482 494 460 Latin America: Argentina......................................... 6 6 3 4 4 37 39 39 35 29 Brazil................................................... 9 10 11 10 10 73 65 61 60 75 Chile.................................................... 3 4 5 6 7 31 32 30 31 26 Colombia............................................. 5 7 5 9 13 21 25 24 24 20 Cuba................................................... * * ♦ 3 3 2 2 2 Mexico................................................. 10 11 16 16 12 78 95 96 125 118 Panama................................................ 9 10 4 3 2 12 12 11 10 13 Peru..................................................... 6 7 6 5 7 28 31 31 29 32 Uruguay.............................................. 1 1 1 1 1 6 7 7 9 6 Venezuela............................................. 25 36 38 37 36 49 62 56 53 54 Other L.A. republics........................... 18 20 15 17 19 59 60 62 56 59 Bahamas and Bermuda....................... 2 3 7 5 4 II 18 12 21 25 Neth. Antilles & Surinam................... 7 7 6 8 5 4 4 5 5 5 Other Latin America........................... 2 1 I 1 1 11 10 9 10 7 Total............................................. 104 124 118 122 122 422 463 445 469 472 Asia: Hong Kong.......................................... 2 3 4 4 4 6 7 7 9 11 India.................................................. 17 17 13 15 12 32 34 33 35 39 Indonesia............................................ 2 2 2 4 5 3 7 5 5 3 Israel.................................................... 2 2 1 1 5 5 5 4 5 Japan................................................... 23 27 30 38 44 146 164 163 179 195 Korea................................................... 4 3 2 2 1 5 5 7 6 8 Philippines............................................ 7 7 6 7 7 17 17 17 23 22 Taiwan................................................. 7 4 5 2 1 5 7 12 10 10 Thailand............................ 1 4 4 4 5 11 11 10 8 10 Other Asia.......................................... 35 31 41 39 45 69 75 88 79 78 Total............................................. 101 100 107 114 126 299 331 346 357 380 Africa: Congo (Kinshasa)............................... I I 1 1 1 2 2 2 2 2 South Africa........................................ 10 17 5 8 7 17 24 16 1 6 14 U.A.R. (Egypt).................................... 2 1 2 2 3 11 11 9 7 7 Other Africa....................... 7 6 7 8 11 30 32 35 32 31 Total............................................. 19 24 15 19 21 59 69 62 58 54 Other countries: Australia.............................................. 51 58 52 49 61 57 58 54 44 44 All other.............................................. 4 6 6 7 8 7 8 8 6 7 Total............................................. 55 64 58 56 70 63 66 61 50 51 International and regional...................... * * * * * I * * * 1 Grand total.................................. 1,028 1,089 1,148 1,193 1 .349 2,539 2,631 2,692 2,587 2,566 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

FEBRUARY 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 millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l in l 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 [963—Sept............................................................................... 691 552 139 2,257 1 830 225 202 Dec........................................................................ 626 478 148 2,131 1 739 201 191 Dec.1............................................................................ 626 479 148 2,188 1,778 199 211 1964—Mar............................................................................... 631 475 156 2,407 1 887 239 282 June.............................................................................. 622 471 151 2’482 2,000 220 262 June2......................................................................... 585 441 144 2 330 1 952 219 260 Sept............................................................................... 650 498 152 2,719 2,168 249 302 Dec.................................................................. 695 553 141 2,776 2,306 1 89 281 Dec.3......................................................................... 700 556 144 2’853 2 338 205 310 j 965—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 Sept.»........................................................................... I ,349 1,025 324 2,566 2,127 194 246 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, 3 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 End of period Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a e h t r i e i n c r a Japan O A t s h i e a r Africa o A th ll e r 1964—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.1.................... 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.1.................. 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 I 394 27 263 303 214 88 290 110 98 85 15 Sept.’’................... 440 1,459 40 218 310 212 84 283 109 103 87 13 t 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 □ FEBRUARY 1968 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E p n er d i o o d f m to a t t a e l d M ta o r n y e ­ U St n a i t t e e s d r m es a t t e o d f A i f s g t h an an­ A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world 1960........................ 40.540 2,43.9 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 66 223 700 558 63 84 1,151 44 1966—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 84 229 701 I ,510 45 84 1,110 45 Dec............... 2,682 12,065 33 701 1 /180 84 1 ,015 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 30 84 10 2,225 287 1962........................ 57 92 61 2,587 3,679 77 247 44 29 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 41 112 56 2,107 304 1965........................ 35 97 84 4,706 4,410 78 281 ............. 46 110 56 2,404 328 1966—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 30 106 46 2,412 Feb................ 28 108 45 5,235 4,289 120 243 30 106 46 2’411 Mar.............. 28 108 48 5,240 4,294 123 243 45 106 46 2^16 330 Apr............... 28 108 48 5,241 4,296 127 243 45 106 46 2,417 May............ 29 108 48 5,241 4,294 132 243 45 106 2,416 June............. 29 108 47 5,235 4,292 149 243 45 94 2^412 330 July.............. 29 108 47 5,233 4,285 150 243 45 94 2’406 Aug.............. 30 108 47 5,234 4,283 149 243 45 94 46 2,400 Sept.............. 30 108 47 5,234 4,284 130 243 45 94 46 2,401 335 Oct............... 31 108 47 5,234 4,281 132 243 45 94 46 2,398 Nov........ 31 108 47 5,234 4,277 132 243 45 94 46 2,394 Dec............... 107 45 5,234 4,228 243 44 115 46 2,400 ............. 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 e n th d e s r­ Nigeria N w o ay r­ P s a ta k n i­ Peru P p h in il e i s p- Po g r a t l u- A S r a a u b d i i a 1960........................ n.a. 119 137 29 1,451 30 52 42 15 552 18 1961........................ 43 140 112 29 1,581 20 30 53 47 27 443 65 1962........................ 49 172 3 95 29 1,581 20 30 53 47 41 471 78 1963 ........................ 48 172 7 139 29 1,601 20 31 53 57 28 497 78 1964........................ 48 183 17 169 34 1 ,688 20 31 53 67 23 523 78 1965........................ 52 182 68 158 21 1,756 20 31 53 67 38 576 73 1966—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 U4 21 1,731 20 18 53 65 47 647 69 Mar.............. 73 193 68 112 21 1 ,731 20 18 53 55 47 650 69 Apr............... 73 193 68 120 21 1,731 20 18 53 55 49 651 69 Kfay............. 73 193 68 149 21 1 ,731 20 18 53 45 51 654 69 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 68 155 21 1,731 20 18 53 20 58 692 69 Nov.............. 193 68 ............. 21 1 ,731 20 18 53 20 59 698 69 Dec............. 21 1 ,71 1 20 18 53 ............6.0 ............. 69 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 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 io o d f S A o fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n o i i n m t g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t l r i e . ­ ments 4 1960............................ 178 178 170 2,185 41 104 134 174 2,800 180 401 4 -19 1961............................ 298 316 180 2,560 43 104 139 174 2,268 180 401 6 115 1962............................ 499 446 181 2,667 43 104 140 174 2^582 180 401 4 — 50 1963.......................... . 630 573 182 2; 820 50 104 115 174 2 484 171 401 14 — 279 1964......................... 574 616 189 2,725 55 104 104 139 2'136 171 401 17 — 50 1965............................ 425 810 202 3'042 55 96 1 16 139 2,265 155 401 19 558 1966—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 37 482 784 203 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.......... 558 785 203 2,753 81 92 97 93 140 401 22 — 275 Dec.................. 583 203 3,089 92 97 93 401 — 624 i Includes reported or estimated gold holdings of international and those matched by gold mitigation deposits with the United States and regional organizations, central banks and govts, of countries listed in United Kingdom; adjustment is $270 million. this table and also of a number not shown separately here, and gold to be 3 Excludes gold subscription payments made by some member countries distributed by the Tripartite Commission for the Restitution of Monetary in anticipation of increase in Fund quotas: for most of these countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ the increased quotas became effective in Feb. 1966. tries, and China Mainland. 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold The figures included for the Bank for International Settlements are assets minus gold deposit liabilities. the Bank’s gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the Note.—-For back figures and description of the data in this and the gold deposited with the BIS is included in the gold reserves of individual following tables on gold (except production), see “Gold,” Section 14 of countries. Supplement to Banking and Monetary Statistics, 1962. 2 Adjusted to include gold subscription payments to the I ME, except GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ A So fr u i t c h a d R e h s o ia ­ Ghana C s ( h K o a n i s n g a ­ o ) U St n a i t t e e s d C a a d n a - M ic e o x- r N a i g c u a a - Co b l i o a m- P p h i i n l e ip s - t A ra u l s ia - ot A h l e l r 1960................................ 1,175.0 748.4 19.6 30.8 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 I,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 1 1 .2 4 6 15.3 30.7 61.5 1966................................. l’445.0 1,080.8 19.3 24.0 5.6 63.1 114.6 7.5 7.0 9.8 4 2 15.8 32.0 61.3 1966—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. i 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 2.4 Aug................ 90.5 8.3 .8 2.1 Sept...................... 89.9 8.0 .8 Oct....................... 84.1 8.6 .7 Nov...................... 90.0 8.2 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 □ FEBRUARY 1968 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Jan. 31, 1967 Rate Country 1967 1968 as of Jan. 31, Per Month 1968 cent effective Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Argentina................ 6.0 Dec. 1957 6 0 Austria.............................. 4.5 4.25 3.75 3 75 Belgium.................. 5.25 5.0 4.75 4.5 4 25 4.00 40 Brazil................................. 12.0 Jan. 1965 12*0 Burma................................. 4.0 Feb. 1962 4 0 Canada 1............................. 5.0 Jan. 1967 4.5 5.0 6.0 7.0 7 0 Ceylon................................. 5.0 May 1965 5 0 Chile 2................................. 15.84 July 1966 1584 Colombia............................. 8.0 May 1963 8 0 Costa Rica........................... 3.0 Apr. 1939 30 Denmark............................. 6.5 7.5 7 5 Ecuador.............................. 5.0 Nov. 1956 5 0 El Salvador................ 4.0 Aug. 1964 4 0 Finland................................ 7.0 Apr. 1962 70 France................................. 3.5 Apr. 1965 3'5 Germany, Fed. Rep. of....... 4.5 Jan. 1967 4.0 3.5 3.0 3.0 Ghana................................. 7.0 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................................. 6.5 Jan? 1967 6.25 5.88 5.56 5.44 5.50 5.56 5 50 5.53 5.94 7 75 7.78 7 78 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 5.84 6.21 6 21 Korea............................. 28.0 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 35 Pakistan............................... 5.0 5 0 Peru..................................... 9.5 Nov. 1959 9 5 Philippine Republic............ 4.75 Jan. 1966 6.0 6^0 Portugal............................... 2.5 Sept. 1965 2 5 South Africa........................ 6.0 July 1966 6 0 Spain..,...,...................... 4.0 4 0 Sweden................................ 6.0 5.5 5.0 6.0 6 0 Switzerland.......................... 3.5 July 1966 3.0 30 Taiwan 4.............................. 14.04 July 1963 13.3 13.3 Thailand.............................. 5.0 Oct. 1959 5 0 Tunisia................................. 5.0 5 0 Turkey................................. 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom. ............... 6.5 Jan' 1967 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 percent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at for rediscounts in excess of an individual bank’s quota; the average rate charged by banks in the previous half year. Old redis­ Costa Rica—5 per cent for paper related to commercial transactions counts remain subject to old rates provided their amount is reduced by (rate shown is for agricultural and industrial paper); one-eighth each month beginning with May 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; s 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

FEBRUARY 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 i n tz d er­ Month 3 T m r b e o i a l s n ls u t , h r y s 1 m D o a d y n a - y e t y o 2 ­ 3 B a a m a c n n c o c k e n e p e s t t r h , ­ s s ’ 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e t o y ­ a B l d l e o a p w n 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 ­ 3 Tr 6 d b e 0 a i a y - l s l 9 s s u 0 , 4 r y m D o a d y n a - e y t y o ­ 5 T 3 r m b e i a o l s l n s u t , h r y s D m a d o y a n - y e t o y ­ d P is r r c i a v o t a e u t n e t 1964—Dec............ 3.85 3.84 6.84 6.62 5.87 5.00 4.16 2.63 2.88 3.68 2.09 2.68 1965—Dec............ 4,45 4.03 5.91 5.48 4,79 4.00 4.48 3.88 4.00 4.29 3.47 3.00 1966—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 4,48 2.75 2.19 4,50 4,60 3,75 Nov............ 5.15 4.69 6.88 6.55 5.80 4.90 4,67 2.75 2.31 4,50 3.23 3.75 Dec........... 5.80 5.67 7.78 7.52 6.83 6.00 ............ • 2.75 2.44 4,51 4.05 3.75 1 Based on average yield of weekly tenders during month. s Based on average of lowest and highest quotation during month 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see “International Finance,’’ 4 Rate in effect at end of month. Section 15 of Supplement to Hanking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date q K ( u U i a o n U d n t g j a . i . d S t t e i o . t d o o m n U St n a i t t e e s d L S ( o f p n a o r v d e f o o a d n r ) d f ( ( p o i - s + o r c w ) u ) o n a o u o d r n n d r t i . L n ( o c f N n e a o n v d e f t o o t i . v n r e ) quo in t ed C ana q d u A a o U d t j . a . S t . i t o o n U St n a i t t e e s d C ( a f n a o v a f d o a r ) C d f ( d ( a o i . - s o n r + c w ) l a ) o l d a a u o o i r r a n n s d r n t i C n t a c t N a n e o v n a e f t o d t i r a v ) e basis) Canada basis 1967 Sept. 1............. 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 7.18 -.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 + .09 4.96 4.84 4,53 j-.31 -1.44 1,13 27. ............ 5.58 4.50 1.08 -.98 + .10 4.97 4.85 4,50 7.35 -1.44 —1,09 Nov. 3.............. 5.73 4.56 1.17 -l.H + .06 4.94 4.82 4.56 -l7.26 — 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 7.51 -.81 -.30 Dec. 1.............. 7.33 4.93 2.40 -1.17 + 1.23 5.46 5.33 4.93 + .40 -.17 J7.23 8............. 7.32 4.89 2.43 -2.83 -.40 5.55 5.45 4,89 --.56 -.32 77.24 15............. 7.27 4.98 2.29 -4,72 -2.43 5.82 5.69 4.98 7-.71 -.50 -7.21 22............. 7.26 4.92 2.34 -4,67 -2.33 5.97 5.84 4.92 --.92 -.48 7H.44 29.............. 7,26 4.98 2,28 -2.83 -.55 5.95 5.82 4,98 -H.84 -.49 J7.35 1968 Jan. 5,............ 7.26 4.95 2.31 -2.50 -.19 5.92 5.79 4.95 + .84 -.32 + .52 1 1 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 . . 2 3 1 4 5 5. . 0 0 3 2 2 2 . . 1 3 8 2 - -2 2 , . 7 6 2 0 - -. . 4 4 0 2 5 5 . . 8 8 1 0 5 5 . . 6 6 6 7 5 5 . .0 0 3 2 + 7- . . 6 6 4 4 -1 -. . 8 7 5 4 — - 1 . . 2 1 1 0 26............. 7.34 4.87 2.47 -2.99 -.52 6.26 6.08 4.87 +1.21 -1.30 -.09 Feb. 2............. 7.38 4.81 2.57 -2.59 -.02 6.35 6.15 4.81 +1.34 -1.20 + .14 Note.—Treaiury 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 □ FEBRUARY 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) 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 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 i4.413 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 14.416 426.672 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 1968—Jan............................................... .28465 111.98 3.8648 2.0123 92.181 16.688 13.409 23.745 Period F (f r r a a n n c c e ) G (d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e ) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n ( M do s a i l l a l a a y r ­ ) M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ r s ) 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...................................2..0....3..5..2...........2..5..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 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 M3.236 *>266 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 1968--Jan................................................. 20.307 24.974 13.337 240.91 .16004 .27612 32.712 8.0056 27.747 New Zealand United Period Norway Po g r a t l u ­ S A o fr u i t c h a Spain Sweden e S r w la i n tz d ­ King- (pound) (dollar) (krone) (escudo) (rand) (peseta) (krona) (franc) (p d o o u m nd) 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 I.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 1967--Jan................................................ 276.34 13.978 3.4786 139.03 1.6636 19.337 23.089 279.10 Feb................................................. 276.65 13.980 3.4783 139,18 1,6634 19.353 23.061 279.41 Mar................................................ 276.86 13.984 3.4811 139.29 1.6633 19.367 23.079 279.63 Apr.............................................. 277.15 13.993 3.4858 139.44 1.6631 19.397 23.126 279.92 May.............................................. 276.92 13.990 3.4830 139.32 1.6631 19.399 23.169 279.69 June.............................................. 276,35 13.992 3.4810 139.04 1.6632 19.415 23.166 279.12 July................................................ 11276.12 12137.97 13.986 3,4788 138.85 1,6634 19.412 23.128 278.73 Aug................................................ 137.89 13.981 3.4766 138.75 I.6637 19.394 23,061 278.53 Sept...................................... 137.81 13.978 3.4755 138.66 1.6640 19.381 23,027 278.37 Oct................................................. 137.78 13,979 3.4736 138.64 1.6635 19.341 23.035 278.32 Nov.. ........................................... 128.28 13.985 3.4654 139.05 91 .5831 19.326 23.146 9266.18 Dec.............................................. 111.95 13.996 3,4817 139.84 1.4236 19.341 23.158 240.63 1968--Jan............................................... 112.09 13.997 3.4861 140.00 1.4236 19.366 23.017 240.91 1 A new markka, equal to 100 old markkaa, was introduced on Jan. 1, 9 Quotations not available Nov. 21, 1967. 1963. 10 Quotations not available Nov. 21-27, 1967, 2 Based on quotations through Feb. 11, 1966. । i Based on quotations through July, 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. 4 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. 6 Quotations not available Nov. 21-24, 1967. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. The averages 7 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. s Effective June 6, 1966, the Indian rupee was devalued from 4.76 to For description of rates and back data, see “International Finance,” 7.5 rupees per U.S. dollar. Section 15 o(' Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-87 For special tables see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-88 FEDERAL RESERVE BANKS, 1967 □ FEBRUARY 1968 EARNINGS AND EXPENSES (In Item Total Boston New York Philadelphia Cleveland Richmond Atlanta Current earnings Discounts and advances..................................... 7,660,606 349,208 2,214,250 102,823 178,939 264,049 298,382 4,823,360 4,823,360 U.S. Govt, securities.......................................... 2,152,111,878 112,844,042 542,513,633 110,223,546 166,696,766 155,868,200 118,743,935 Foreign currencies............................................. 25,251,438 1,212,088 6,567,329 1,315,034 2,272,627 1,312,094 1,563,628 All other............................................................ 556,468 18,544 101,393 21,996 36,963 23,314 58,451 Total........................................................... 2,190,403,750 114,423,882 556,219,965 111,663,399 169,185,295 157,467,657 120,664,396 Current expenses Salaries: Officers ....................................................... 9,123,382 507,341 1,710,594 608,671 634,317 800,555 689,768 Employees.................................................. 110,081,297 6,979,573 26,707,291 5,128,504 8,099,897 7,531,930 7,543,091 Retirement and other benefits........................... 19,354,646 1,279,549 4,396,264 959,297 1,455,958 1,342,633 1,334,852 Fees—Directors and others............................... 973,729 111,504 179,416 53,430 104,649 53,761 82,058 Traveling expenses............................................. 2,703,459 167,073 410,355 100,161 191,044 201,866 248,242 Postage and expressage..................................... 27,146,216 1 ,746,293 3,282,549 1,134,495 2,308,455 3,039,882 2,538,909 Telephone and telegraph................................. 2,231,983 103,525 490,850 90,915 152,322 169,897 258,437 Printing and supplies........................................ 9,773,257 665,449 1,780,118 506,831 753,568 765,871 900,936 Insurance......................................................... 343,274 22,645 37,595 14,889 38,938 31,377 21,558 Taxes on real estate........................................... 5,805,437 584,797 I,035,033 179,904 506,159 216,416 442,774 Depreciation (building)..................................... 4,956,564 135,316 444,284 76,596 278,811 167,307 787,142 Light, heat, power, and water........................... 2,163,112 138,671 310,774 92,297 247,861 169,976 199,548 Repairs and alterations..................................... 1,447,791 72,247 308,873 57,617 71,537 48,072 169,961 Rent.................................................................. 138,006 23,814 7,032 7,475 26,571 10,257 144 Furniture and equipment: Purchases ............................................ 3,981,034 144,485 1,273,855 177,403 192,893 255,817 394,550 Rentals....................................................... 8,650,932 537,694 891,778 281,060 632,179 885,219 489,677 All other............................................................ 3,605,731 153,057 822,200 141,206 457,327 141,133 199,625 Inter-Bank expenses.......................................... 73,608 -1,031,147 72,138 132,694 -1,650 97,700 Subtotal.................................................... 212,479,845 13,446,641 43,057,714 9,682,889 16,285,180 15,830,319 16,398,972 F.R. currency..................................................... 18,790,084 1,259,347 2,819,743 1,016,563 1,383,601 1,733,620 1,799,664 Assessment for expenses of Board of Governors. 10,769,596 516,000 2,801,300 567,000 965,400 559,500 665,800 Total........................................................... 242,039,525 15,221,988 48,678,757 11,266,452 18,634,181 18,123,439 18,864,436 Less: Reimbursement for certain fiscal agency and other expenses..................................... 21,918,681 1,208,718 4,286,972 940,730 2,299,407 1,168,716 1,503,785 Net expenses............................................ 220,120,844 14,013,270 44,391,785 10,325,722 16,334,774 16,954,723 17,360,651 Profit and loss Current net earnings........................................ 1,970,282,907 100,410,612 511,828,181 101,337,676 152,850,520 140,512,935 103,303,746 Additions to current net earnings: Profits on sales of U.S. Govt, securities... 761,553 39,336 189,510 39,600 59,194 55,331 42,770 Profits on foreign exchange transactions.... 1,431,110 68,693 372,088 74,418 128,800 74,418 88,729 All other.................................................... 168,012 12,169 9,278 3,081 13,288 3,444 2,080 Total additions. ........................................ 2,360,675 120,198 570,876 117,099 201,282 133,193 133,579 Deductions from current net earnings.............. 266,798 13,064 3,267 1,638 685 77,560 116,730 Net addition to or deduction from (—) current net earnings................................................ 2,093,873 107,134 567,609 115,461 200,597 55,632 16,849 Net earnings before payments to U.S. Treasury. 1,972,376,782 100,517,745 512,395,791 101,453,137 153,051,118 140,568,567 103,320,595 Dividends paid.................................................. 35,027,312 1,680,897 9,092,988 1,853,711 3,130,507 1,823,438 2,195,732 Payments to U.S. Treasury (interest on F.R. notes)............................................................. 1,907,498,270 97,023,799 497,336,952 97,702,876 147,164,761 137,245,979 98,568,763 Transferred to surplus....................................... 29,851,200 1,813,050 5,965,850 1,896,550 2,755,850 1,499,150 2,556,100 Surplus, January 1............................................ 569,890,200 27,303,600 148,347,650 29,929,100 51,128,750 29,575,700 35,071,800 Surplus, December 31..................................... 599,741,400 29,116,650 154,313,500 31,825,650 53,884,600 31,074,850 37,627,900 Note.—Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEBRUARY 1968 □ FEDERAL RESERVE BANKS, 1967 A-89 OF FEDERAL RESERVE BANKS dollars) Chicago St. Louis Minneapolis K C an it s y as Dallas Fra S n a s n ci co Item Current earnings 2,260,392 261,826 130,987 474,792 175,641 949,317 Discounts and advances Acceptances 356,248,931 75,854,161 43,123,987 83,877,193 88,410,349 297,707,135 U.S. Govt, securities 3,659,496 883,800 606,034 1,111,062 1,464,582 3,283,664 Foreign currencies 89,113 24,567 25,174 59,448 35,223 62,282 All other 362,257,932 77,024,354 43,886,182 85,522,495 90,085,795 302,002,398 Total Current expenses Salaries: 934,641 714,293 519,763 626,305 615,814 761,320 Officers 16,059,950 6,401,374 3,708,820 6,178,850 4,936,779 10,805,238 Employees 2,634,342 1,122,815 674,217 1,135,833 924,085 2,094,801 Retirement and other benefits 59,424 60,154 49,929 46,951 45,150 127,303 Fees—Directors and others 325,980 174,870 179,143 159,113 159,148 386,464 Traveling expenses 3,532,972 1,635,567 1,055,879 2,091,325 1,553,626 3,226,264 Postage and expressage 253,404 119,439 87,224 142,870 147,750 215,350 Telephone and telegraph 1,470,146 684,729 266,926 716,243 441,803 820,637 Printing and supplies 37,574 30,861 8,779 18,246 22,448 58,364 Insurance 1,043,614 238,617 359,517 327,633 312,864 558,109 Taxes on real estate 1,379,375 274,550 75,145 274,541 632,988 430,509 Depreciation (building) 313,748 150,143 96,822 161,730 129,337 152,205 Light, heat, power, and water 179,523 87,914 79,356 168,817 68,775 135,099 Repairs and alterations 51 ,996 1,581 1,393 4,492 1,665 1,586 Rent Furniture and equipment: 335,390 407,235 108,402 302,546 128,731 259,727 Purchases 1,714,087 603,270 354,306 703,536 678,899 879,227 Rentals 661,532 185,088 154,298 207,706 309,554 173,005 All other 215,613 54,971 38,846 67,511 88,478 191,233 Inter-Bank expenses 31,203,311 12,947,471 7,818,765 13,334,248 11,197,894 21,276,441 Subtotal 3,267,778 788,628 522,653 927,245 1,061,765 2,209,477 F.R. currency 1,562,600 372,700 256,100 479,500 625,596 1,398,100 Assessment for expenses of Board of Governors 36,033,689 14,108,799 8,597,518 14,740,993 12,885,255 24,884,018 Total Less: Reimbursement for certain fiscal agency 4,003,943 1,240,487 661,356 1,488,603 909,405 2,206,559 and other expenses 32,029,746 12,868,312 7,936,162 13,252,390 11,975,850 22,677,459 Net expenses Profit and loss 330,228,186 64,156,042 35,950,020 72,270,105 78,109,945 279,324,939 Current net earnings Additions to current net earnings: 126,148 27,269 15,390 29,395 30,855 106,755 Profits on sales of U.S. Govt, securities 207,511 50,089 34,347 62,969 83,004 186,044 Profits on foreign exchange transactions 35,987 9,622 1,307 19,280 122 58,354 All other 369,646 86,980 51,044 111,644 113,981 351,153 Total additions 2,896 30,605 624 4,615 5,424 9,690 Deductions from current net earnings Net addition to or deduction from (—) 366,749 56,375 50,419 107,029 108,557 341,462 current net earnings 330,594,936 64,212,417 36,000,439 72,377,133 78,218,502 279,666,402 Net earnings before payments to U.S. Treasury 5,104,198 1,208,564 833,048 1,563,480 2,027,224 4,513,525 Dividends paid 320,748,038 62,402,253 34,637,041 69,703,204 74,941,628 270,022,976 Payments to U.S. Treasury (interest on F.R. notes) 4,742,700 601,600 530,350 1,110,450 1,249,650 5,129,900 Transferred to surplus 82,617,100 19,748,700 13,554,950 25,344,250 33,214,000 74,054,600 Surplus, January 1 87,359,800 20,350,300 14,085,300 26,454,700 34,463,650 79,184,500 Surplus, December 31 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-90 BANKING OFFICES □ FEBRUARY 1968 NUMBER OF BANKING OFFICES IN THE UNITED STATES ■ ■ - .........-———— Commercial banks1 Mutual savings banks Type of office and type of change All Member Nonmember banks Total Total ti N on a a ­ l State1 Total Insured in N su o r n e ­ d Insured 1 _ i n N su o r n e ­ d Banks (head office): Dec. 31, 1934............................................ 16,063 15,484 6,442 5,462 980 9,042 7,699 1 .343 68 511 Dec. 31, 1941............................................. 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 2........................................ 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951........................................... 14,618 14,089 6,840 4,939 1 ,901 7,252 6,602 650 202 327 Dec. 31, 1956............................................. 14,167 13,640 6,462 4,651 1 ,81 1 7,181 6,737 444 223 304 Dec. 31, 1957 ............................................ 14,090 13,568 6,393 4,620 1 ,773 7,178 6,753 425 239 283 Dec. 31, 1958 ............................................ 14,020 13,501 6,312 4,578 1 ,734 7,192 6,793 399 241 278 Dec. 31, 1959........................................... . 13,991 13,474 6,233 4,542 1,691 7,244 6,878 366 268 249 Dec. 31, 1960.............................................. 13,986 13,472 6,174 4,530 1 ,644 7,300 6,948 352 325 189 Dec. 31, 1961............................................. 13,946 13,432 6,113 4,513 1 ,600 7,320 6,997 323 330 184 Dec. 31, 1962............................................. 13,938 13,427 6,047 4,503 1 ,544 7,380 7,072 308 331 180 Dec. 31, 1963 .............................................. 14,078 13,569 6,108 4,615 1 ,493 7,461 7,177 284 330 179 Dec. 31, 1964............................................. 14,266 13,761 6,225 4,773 1 ,452 7,536 7,262 274 327 178 Dec. 31, 1965 ............................................ 14,309 13,804 6,221 4,815 1 ,406 7,583 7,320 263 328 177 Dec. 31, 1966............................................ 14,274 13,770 6,150 4,799 1,351 7,620 7.385 235 330 174 Dec. 31, 1967........................................... 14,222 13,721 6.071 4,758 1,313 7.650 7,439 21 1 331 170 Branches, additional offices, and facilities: Dec. 31, 1934.............................................. 3,133 3,007 2,224 1 ,243 981 783 7$ 3 E 6 Dec. 31, 1941............................................ 3,699 3,564 2,580 1,565 1 ,015 984 932 52 32 103 Dec. 31, 19472......................................... 4,332 4, 161 3,051 1 ,870 1,181 1,110 1 ,043 67 124 47 Dec. 31, 1951............................................ 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1956............................................ 7,955 7,589 5,886 3,809 2,077 1 ,703 1,666 37 257 109 Dec. 31, 1957........................................... 8,609 8,204 6,378 4, 178 2,200 1,826 1,789 37 296 109 Dec. 31, 1958............................................. 9,286 8,861 6,924 4,534 2,390 1,937 1 ,898 39 305 120 Dec. 31, 1959............................................. 10,099 9,652 7,492 4,973 2,519 2,160 2,118 42 318 129 Dec. 31, 1960.............................................. 10,969 10,483 8,133 5,509 2,624 2,350 2,303 47 381 105 Dec. 31, 1961............................................ 11,896 11,353 8,899 6,044 2,855 2,454 2,410 44 427 1 16 Dec. 31, 1962........................................... 12,932 12,345 9,649 6,640 3,009 2,696 2,646 50 466 121 Dec. 31, 1963............................................. 14,122 13,498 10,613 7,420 3,193 2,885 2,835 50 502 122 Dec. 31, 1964............................................ 15,275 14,601 11,457 8,156 3,301 3,144 3,094 50 549 125 Dec. 31, 1965............................................ 16,471 15,756 12,298 8,964 3,334 3,458 3,404 54 583 132 Dec. 31, 1966........................................... 17,665 16,908 13,129 9,611 3,518 3,779 3,717 62 614 143 Dec. 31, 1967.............................................. 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Changes Jan.-Dec. 31, 1967 Banks: New banks3.............................................. 102 102 21 18 3 81 74 7 Suspensions............................................... -4 -4 -2 -1 -1 -2 -2 Consolidations and absorptions: Banks converted into branches............... -117 -114 -65 -53 -12 -49 -49 -I -2 Other..................................................... -19 -19 -15 -11 -4 -4 -3 -1 Voluntary liquidations4............................. -11 -11 -11 -4 _7 Other....................................................... -3 -3 -3 -3 Interclass changes: N N o o n n m m e e m m b b e e r r t t o o S n t a a t t i e o n m a e l. m ... b .. e .. r . . . . .. . . .. . . .. . . . . . . . . . . . . . . . .. ............. 7 I 7 1 - -1 7 - -1 7 State member to national........................ 4 -4 State member to nonmember........ -21 -21 21 21 National to nonmember........................ -5 -5 5 5 Noninsured to insured............... . 20 -20 2 -2 Net change................................................ -52 -49 -79 -41 -38 30 54 -24 1 -4 Number of banks, Dec. 31,1967............... 14,222 13,721 6,071 4,758 1,313 7,650 7.439 211 331 170 Branches and additional offices: De novo...................................................... 1,090 1,020 708 501 207 312 311 1 55 15 Other.......................................................... 4 4 4 4 Banks converted...................................... 117 114 88 74 14 26 26 i 2 Discontinued......... . . -81 -80 -69 -49 -20 -11 - 1 1 -I Other..................................................... -22 -22 -I - 1 -21 -21 Interclass changes: Nonmember to national..................... 37 37 -37 -37 Nonmember to State member........... ............. 4 4 -4 -4 State member to national.................... 33 -33 State member to non member............ -17 -17 17 17 National to State member.................. -6 6 National to nonmember......................... -7 -7 7 7 Noninsured to insured............................ Reclassified as facilities............................... - 1 -1 -1 -1 Reclassified as branches................... 7 7 7 3 4 Net change................................................ 1,114 1 .042 749 584 165 293 309 — 16 55 17 Number of branches and additional offices, Dec. 31, 1967........................... 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Banking facilities:5 Established.............................................. 8 8 7 7 1 1 ............. Discontinued.............................................. -24 -24 -23 -17 -6 -I -1 Branches reclassified as facilities................ 1 1 1 1 ............. Facilities reclassified as branches............... -7 -7 -7 -3 -4 Net change........................................ -22 -22 -22 -12 -10 Number of facilities, Dec. 31, 1967............ 238 238 207 192 15 31 31 1 State member banks and insured mutual savings banks figures both * Exclusive of liquidations incident to succession, conversion, and ab­ include 1 to 3 member mutual savings banks. 1941 to 1962 inclusive, sorption of banks. not reflected in total commercial bank figures. State member bank figures 5 Provided at military and other Govt, establishments through arrange­ also include 1 or 2 noninsured trust companies 1954 to date. ments made by the Treasury Dept. 2 Series revised as of June 30, 1947. The revision resulted in an addi­ tion of 115 banks and 9 branches. Note.—Beginning with 1959, figures include all banks in Alaska and 3 Exclusive of new banks organized to succeed operating banks. Hawaii, but nonmember banks in territories and possessions are excluded. 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FEBRUARY 1968 □ FEDERAL RESERVE PAR LIST A-91 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (non member) F.R. District, Total Member Non member State, or other area Banks a B n r d a n of c f h ic e e s s Banks a B nd ra o n f c f h ic e e s s Banks a B nd ra o n f c f h ic e e s s Banks a B nd ra n of c f h ic e e s s Banks a B nd ra n of c f h ic e e s s Total includes Puerto Rico and Virgin Islands:* Dec. 31, 1966.................... 13,687 17,034 12,238 16,720 6.149 13, 152 6,089 3,568 1,449 314 Dec. 31, 1967 .................... 13,641 18,080 12,266 17,759 6,071 13,881 6,195 3,878 1 ,375 321 F.R. Districts, Dec. 31, 1967: Boston.............................. 384 1,325 384 1,325 247 1 ,011 137 314 New York......................... 499 2,969 499 2,969 384 2,624 115 345 Philadelphia...................... 501 1,217 501 1,217 370 912 131 305 Cleveland.......................... 826 1,648 826 1,648 492 1,396 334 252 Richmond......................... 802 2,378 732 2,307 392 1,510 340 797 70 71 Atlanta.............................. 1,570 1 , 108 1,123 1 ,002 528 763 595 239 447 106 Chicago............................. 2,545 1 ,893 2,545 1 ,893 987 1,265 1,558 628 St. Louis........................... 1,506 706 1,291 636 478 404 813 232 215 70 Minneapolis...................... 1,356 227 780 164 493 103 287 61 576 63 Kansas City...................... 1,924 227 1,924 227 836 145 1 ,088 82 ................ Dallas............................... 1 ,290 258 1 ,224 247 667 150 557 97 66 11 San Francisco.................... 438 4,124 437 4,124 197 3,598 240 526 1 ................ State or area, Dec. 31, 1967: Alabama........................... 266 211 200 199 HO 167 90 32 66 12 Alaska............................... 12 54 11 54 5 46 6 8 1 Arizona............................. 1 / 265 17 265 5 207 12 58 Arkansas........................... 248 130 162 107 83 91 79 16 86 23 California.......................... 172 2.685 172 2,685 92 2,432 80 253 Colorado........................... 217 7 217 7 135 5 82 2 Connecticut....................... 65 357 65 357 36 288 29 69 Delaware........................... 19 74 19 74 7 35 12 39 District of Columbia......... 14 96 14 96 12 90 2 6 Florida.............................. 445 21 416 21 208 13 208 8 29 ................ Georgia............................. 426 227 197 211 73 173 124 38 229 16 Hawaii............................... 7 122 7 122 2 43 5 79 Idaho................................. 26 141 26 141 16 127 10 14 Illinois............................. 1,064 17 1,064 17 520 16 544 1 Indiana. ............................ 416 542 416 542 202 355 214 187 Iowa................................... 673 260 673 260 159 62 514 198 Kansas............................... 601 58 601 58 211 35 390 23 Kentucky........................... 346 268 346 268 94 166 252 102 Louisiana.......................... 226 305 124 258 57 181 67 77 102 47 Maine............................... 41 191 41 191 27 134 14 57 ................ Maryland.................. 122 442 122 442 55 269 67 173 Massachusetts................... 158 648 158 648 106 516 52 132 Michigan........................... 341 1 ,049 341 1 ,049 209 867 132 182 Minnesota......................... 722 9 333 8 223 6 1 10 2 389 1 Mississippi........................ 188 281 85 208 42 123 43 85 103 73 Missouri........................... 661 77 626 77 177 39 449 38 35 Montana........................... 132 5 132 5 90 5 42 Nebraska........................... 434 33 434 33 139 19 295 14 Nevada....................... 9 75 9 75 6 66 3 9 New Hampshire................ 75 37 75 37 53 31 22 6 ................ New Jersey....................... 225 757 225 757 184 667 41 90 New Mexico...................... 64 109 64 109 41 67 23 42 New York......................... 325 2,131 325 2,131 264 2,029 61 102 North Carolina................. 123 856 82 788 29 413 53 375 41 68 North Dakota................... 168 64 75 28 46 13 29 15 93 36 Ohio.................................. 531 1,069 531 1,069 348 921 183 148 Oklahoma......................... 421 46 421 46 244 39 177 7 Oregon.............................. 49 285 49 285 14 233 35 52 Pennsylvania..................... 517 1 ,421 517 1 ,421 372 1,115 145 306 Rhode Island.................... 14 149 14 149 5 85 9 64 South. Carolina................. 125 328 96 325 32 218 64 107 29 3 South Dakota.................... 166 87 72 61 59 52 13 9 94 26 Tennessee.......................... 298 404 242 388 87 274 155 114 56 16 Texas................................. 1,147 59 1,125 59 610 27 515 32 22 Utah.................................. 55 112 55 1 12 22 87 33 25 Vermont............................ 45 67 45 67 27 38 18 29 Virginia............................ 250 656 250 656 161 520 89 136 Washington....................... 95 452 95 452 36 408 59 44 West Virginia.................... 194 194 114 80 Wisconsin......................... 598 172 598 172 168 39 430 133 Wyoming........................... 69 1 69 r 53 1 16 ................ Puerto Rico1..................... 13 156 13 156 16 13 140 Virgin Islands1.................. 6 12 6 12 1 12 5 ................ 1 Puerto Rico and the Virgin Islands assigned to the N.Y. District for Note.—Includes all commercial banking offices in the United States, purposes of Regulation J, “Check Clearing and Collection.” Member Puerto Rico, and the Virgin Islands on which checks arc drawn, including branches in Puerto Rico and all except 3 in the Virgin Islands are branches 238 banking facilities. Number of banks and branches differs from that of N.Y.C. banks. Certain branches of Canadian banks (2 in Puerto Rico in the preceding table because this table includes banks in Puerto Rico and 3 in Virgin Islands) are included above as nonmember banks; and and the Virgin Islands but excludes banks and trust cos. on which no nonmember branches in Puerto Rico include 7 other branches of Cana­ checks are drawn. dian banks. 2 Includes 7 N.Y.C. branches of 2 insured nonmember Puerto Rican banks. 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 James A. McIntosh, Assistant Director Arthur L. Broida, Assistant Secretary P. D. Ring. Assistant Director Karl E. Bakke, Assistant Secretary 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 Lloyd M. Schaeffer, Chief Federal Reserve Counsel Examiner Jerome W, Shay, Assistant General Counsel Frederick R. Dahl, Assistant Director Wilson L. Hooff, Assistant General Counsel Jack M. Egertson, Assistant Director Thomas A. Sidman, Assistant Director DIVISION OF RESEARCH AND STATISTICS Charles C. Walcutt, Assistant Director Daniel H. Brill, Director ■ Albert R. Koch, Deputy Director DIVISION OF PERSONNEL ADMINISTRATION J. Charles Partee, Associate Director Edwin J. Johnson, Director Stephen H. Axilrod, Adviser John J. Hart, Assistant Director Lyle E. Gramley, Adviser Kenneth B. Williams, Adviser DIVISION OF ADMINISTRATIVE SERVICES Stanley J. Sigel, Associate Adviser Tynan Smith, Associate Adviser Joseph E. Kelleher, Director Murray S. Wernick, Associate Adviser Harry E. Kern, Assistant Director James B. Eckert, Assistant Adviser Peter M. Keir, Assistant Adviser OFFICE OF THE CONTROLLER Louis Weiner, Assistant Adviser John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE OFFICE OF DEFENSE PLANNING Robert Solomon, Director 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-92 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-93 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, HI, 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-94 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Deputy Chairman First Vice President in charge of branch Zip code Boston...................... ...02106 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 Monroe Kimbrel John C. Wilson Robert E. Moody, Jr. Birmingham.... ..35202 Mays E. Montgomery Edward C. Rainey Jacksonville........ ...32201 Castle W. Jordan Thomas C. Clark Nashville............ ...37203 Alexander Heard Jeffrey J. Wells 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 Jake Hartz John F. Breen Louisville............ ..40201 C. Hunter Green Donald L. Henry Memphis............ ..38101 Sam Cooper Eugene A. Leonard Minneapolis............ ..55440 Joyce A. Swan Hugh D. Galusha, Jr. Robert F. Leach M. H. Strothman, Jr. Helena................ ..59601 C. G. McClave 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 Philip E. Coldwell Max Levine T. W. Plant 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 Eliot J. Swan S. Alfred Halgren 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 I960 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—4957-59 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-95 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-96 FEDERAL RESERVE BULLETIN □ FEBRUARY 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. The Lags Between Investment Decisions and (Limited supply of mimeographed copies of full Their Causes, by Shirley Almon. Feb. 1968. text available upon request for single copies.) Printed in full in the Bulletin. (Reprints available as shown in following list.) Measures of Industrial Production and Final Demand, by Clayton Gehman and Cornelia REPRINTS Motheral. Jan. 1967. (From Federal Reserve Bulletin unless preceded Firms’ Demands For Money: The Evidence by an asterisk.) From the Cross-Section Data, by William J. Adjustment for Seasonal Variation. Descrip­ Frazer, Jr. Jan. 1967. tion of method used by Board in adjusting eco­ The Effect of Credit Conditions on State nomic data for seasonal variations. June 1941. and Local Bond Sales and Capital Outlays 11 PP- Since World War II, by Paul F. McGouldrick. Seasonal Factors Affecting Bank Reserves. Feb. 1967. ' Feb. 1958. 12 pp. Investment by Manufacturing Firms: A Quar­ Liquidity and Public Policy, Staff Paper by terly Time Series Analysis of Industry Stephen H. Axilrod. Oct. 1961. 17 pp. Data, by Robert W. Resek; Mar. 1967. Seasonally Adjusted Series for Bank Credit. Individuals as a Source of Loan Funds for July 1962. 6 pp. State and Local Governments, by Helmut Interest Rates and Monetary Policy, Staff Wendel. Apr. 1967. Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Variable-Rate Mortgages, by Robert Moore Industrial Production—1957-59 Base. Oct. Fisher. May 1967. 1962. 10 pp. The Financing of Capital Investment in the Flow of Funds Seasonally Adjusted. Nov. USSR, by Paul Gekker. June 1967. 1962. 15 pp. Recent Changes in Liquidity, Staff Paper by Federal Fiscal Policy and Aggregate De­ Daniel H. Brill. June 1963. 10 pp. mand, 1956-1966, by Helen B. Junz. June 1967. Measures of Member Bank Reserves. July 1963. 14 pp. Businesses View Banking Services: A Survey Measuring and Analyzing Economic Growth, of Cedar Rapids, Iowa, by Lynn A. Stiles. Staff Paper by Clayton Gehman. Aug. 1963. July 1967. ' 14 pp. The Impact of Monetary Variables: A Selec­ Changes in Banking Structure, 1953-62. Sept. tive Survey of the Recent Empirical Lit­ 1963. 8 pp. erature, by Michael J. Hamburger. July 1967. Economic Change and Economic Analysis, Empirical Literature on The U. S. Balance Staff Paper by Frank R. Garfield. Sept. 1963. of Trade, by Charles K. Harley. July 1967. 17 PP- The Boom in Office Buildings, by Robert The Open Market Policy Process. Oct. 1963. Moore Fisher. Aug. 1967. H PP- New Series on Federal Funds. Aug. 1964. Customers View Bank Markets and Services: 31 pp. A Survey of Elkhart, Indiana, by George G. Kaufman. Aug. 1967. Yield Differentials in Treasury Bills, 1959­ 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

FEDERAL RESERVE BOARD PUBLICATIONS A-97 Revision of Bank Debits and Deposit Turn­ Bank Financing of Agriculture. June 1967. over Series. Mar. 1965. 4 pp. 23 pp. Measures of Banking Structure and Compe­ Evidence on Concentration in Banking Mar­ tition. Sept. 1965. 11 pp. kets and Interest Rates, Staff Economic Time Deposits in Monetary Analysis, Staff Study by Almarin Phillips. June 1967. 11 pp. Economic Study by Lyle E. Gramley and Sam­ New Benchmark Production Measures, 1958 uel B. Chase, Jr. Oct. 1965. 25 pp. and 1963. June 1967. 4 pp. Cycles and Cyclical Imbalances in a Chang­ ing World, Staff Paper by Frank R. Garfield. Banking and Monetary Statistics, 1966. Selected series of banking and monetary statis­ Nov. 1965. 15 pp. tics for 1966 only. Mar. and July 1967. 20 pp. Research on Banking Structure and Per­ formance, Staff Economic Study by Tynan Recent Credit and Monetary Developments. Smith. Apr. 1966. 11 pp. July 1967. 12 pp. Commercial Bank Liquidity, Staff Economic Revised Indexes of Manufacturing Capacity Study by James Pierce. Aug. 1966. 9 pp. and Capacity Utilization. July 1967. 3 pp. Revision of Weekly Reporting Member Bank The Public Information Act—Its Effect on Series. Aug. 1966. 4 pp. Member Banks. July 1967. 6 pp. Toward Understanding of the Whole De­ Interest Cost Effects of Commercial Bank veloping Economic Situation, Staff Eco­ Underwriting of Municipal Revenue Bonds. nomic Study by Frank R. Garfield. Nov. 1966. Aug. 1967. 16 pp. 14 pp. A Revised Index of Manufacturing Capacity, Revision of Money Supply Series. Aug. 1967. Staff Economic Study by Frank de Leeuw with 14 pp. " Frank E. Hopkins and Michael D. Sherman. Revision of Bank Credit Series. Sept. 1967. Nov. 1966. 11 pp. 7 PP- The Role of Financial Intermediaries in U.S. Capital Markets, Staff Economic Study by Treasury and Federal Reserve Foreign Ex­ Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. change Operations. Sept. 1967. 13 pp. 14 PP. Commercial Banks and the Supply of Money: Size and Composition of Consumer Saving. A Market-Determined Demand Deposit Jan. 1967. 19 pp. Rate, Staff Economic Study by John H. Revised Series on Commercial and Industrial Kareken. Oct. 1967. 14 pp. Loans by Industry. Feb. 1967. 2 pp. The Economic Pause in Western Europe. Auto Loan Characteristics at Major Sales Oct. 1967. 17 pp. Finance Companies. Feb. 1967. 5 pp. Balance of Payments Program: Revised Consumer Instalment Credit. Mar. 1967. Guidelines for Banks and Nonbank Finan­ 12 pp. cial Institutions. Jan. 1968. 9 pp. The Balance of Payments in 1966. Apr. 1967. 16 pp. The Federal Reserve-MIT Econometric Model, Staff Economic Study by Frank de Survey of Finance Companies, Mid-1 965. Apr. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. 1967. 26 pp. Monetary Policy and Economic Activity: A Changes in Time and Savings Deposits, July- Postwar Review. May 1967. 22 pp. Oct. 1967. Jan. 1968. 20 pp. Revision in Quarterly Survey of Interest Recent Credit and Monetary Developments. Rates on Business Loans. May 1967. 7 pp. Feb. 1968. 11 pp. Monetary Policy and the Residential Mort­ The Price of Gold is Not the Problem. Feb. gage Market. May 1967. 13 pp. 1968. 7 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 19-A hguorht 4-A segap ot era secnerefeR( Acceptances, bankers’, 11, 29, 31 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 22, 24 Accumulated at commercial banks for payment Arbitrage, 85 of personal loans, 21 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 17 Banks, by classes, 18, 22, 24, 31 Banks, by classes, 11, 18, 23, 26, 31 Banks and the monetary system, 17 Federal Reserve Banks, 12, 79 Corporate, current, 43 Postal savings, 10, 17 Federal Reserve Banks, 12 Subject to reserve requirements, 16 Automobiles: Discount rates, 9, 84 Consumer instalment credit, 48, 49, 50 Discounts and advances by Reserve Banks, 4, 12, 14 Production index, 52, 53 Dividends, corporate, 42, 43 Dollar assets, foreign, 69, 74 Bankers’ balances, 23, 25 Earnings and expenses, Federal Reserve Banks, 88 (See also Foreign liabilities and claims) Earnings and hours, manufacturing industries, 59 Banking offices: Employment, 56, 58, 59 Changes in number, 90 Par and nonpar offices, number, 91 Farm mortgage loans, 44, 45 Banks and the monetary system, 17 Federal finance: Banks for cooperatives, 33 Cash transactions, 34 Bonds (See also U.S. Govt, securities): Receipts and expenditures, 35 New issues, 39, 40, 41 Treasurer’s balance, 34 Yields and prices, 29, 30 Federal funds, 8, 22 Business expenditures on new plant and equipment, 43 Federal home loan banks, 33, 45 Business indexes, 56 Federal Housing Administration, 30, 44, 45, 46 Business loans (See Commercial and industrial loans) Federal intermediate credit banks, 33 Federal land banks, 33 Capacity utilization, 56 Federal National Mortgage Assn., 33, 46 Capital accounts: Federal Reserve Banks: Banks, by classes, 18, 23, 27 Condition statement, 12 Federal Reserve Banks, 12 Earnings and expenses, 88 Central banks, foreign, 82, 84 U.S. Govt, securities held, 4, 12, 14, 36, 37 Certificates of deposit, 27 Federal Reserve credit, 4, 12, 14 Coins, circulation, 15 Federal Reserve notes, 12, 15 Commercial and industrial loans: Federally sponsored credit agencies, 33 Commercial banks, 22 Finance company paper, 29, 31 Weekly reporting banks, 24, 28 Financial institutions, loans to, 22, 24 Commercial banks: Float, 4 Assets and liabilities, 18, 22, 24 Flow of funds: Banking offices, changes in number, 90 Financial assets and liabilities, 65.10 Consumer loans held, by type, 49 Saving and financial flows, 64 Deposits at, for payment of personal loans, 21 Foreign currency operations, 12, 14, 68, 69, 74 Number, by classes, 18 Foreign deposits in U.S. banks, 4, 12, 17, 23, 26, 79 Real estate mortgages held, by type, 44 Foreign exchange rates, 86 Commercial paper, 29, 31 Foreign liabilities and claims: Condition statements (See Assets and liabilities) Banks, 70,71,73,75, 77, 79 Construction, 56, 57 Nonfinancial concerns, 80 Consumer credit: Foreign trade, 67 Instalment credit, 48, 49, 50, 51 Noninstalment credit, by holder, 49 Gold: Consumer price indexes, 56, 60 Certificates, 12, 15 Consumption expenditures, 62, 63 Earmarked, 79 Corporations: Net purchases by U.S., 68 Sales, profits, taxes, and dividends, 42, 43 Production, 83 Security issues, 40, 41 Reserves of central banks and govts., 82 Security prices and yields, 29, 30 Stock, 4, 17, 68 ' Cost of living (See Consumer price indexes) Gross national product, 62, 63 Currency and coin, 4, 10, 23 Currency in circulation, 4, 15, 16 Hours and earnings, manufacturing industries, 59 Housing starts, 57 Customer credit, stock market, 30 Income, national and personal, 62, 63 Debits to deposit accounts, 14 Industrial production index, 52, 56 Debt (See specific types of debt or securities) Instalment loans, 48, 49, 50, 51 Demand deposits: Insurance companies, 32, 36, 37, 45 Adjusted, banks and the monetary system, 17 Insured commercial banks, 20, 21, 22, 90 Adjusted, commercial banks, 14, 16, 23 Interbank deposits, 11, 18, 23 Banks, by classes, 11, 18, 23, 26 Interest rates: Subject to reserve requirements, 16 Business Ioans by banks, 28 Turnover, 14 Federal Reserve Bank discount rates, 9 A-98 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES A-99 Interest rates—Continued Reserve position, basic, member banks, 8 Foreign countries, 84, 85 Reserve requirements, member banks, 10 Money market rates, 29, 85 Reserves: Mortgage yields, 30, 47 Central banks and govts., 82 Time deposits, maximum rates, 10 Commercial banks, 23, 25 Yields, bond and stock, 29 Federal Reserve Banks, 12 International capital transactions of the U.S., 70 Member banks, 4, 6, 11, 16, 23 International institutions, 68, 69, 82, 84 Residential mortgage loans, 44, 45, 46, 47 Inventories, 62 Retail credit, 48 Investment companies, issues and assets, 41 Retail sales, 56 Investments (See also specific types of investments): Banks, by classes, 18, 22, 25, 31 Sales finance companies, loans, 48, 49, 51 Commercial banks, 21 Saving: Federal Reserve Banks, 12, 14 Flow of funds series, 64 Life insurance companies, 32 National income series, 63 Savings and Ioan assns., 32 Savings and loan assns., 32, 37, 45 Savings deposits (See Time deposits) Labor force, 58 Savings institutions, principal assets, 31, 32 Loans (See also specific types of loans): Securities (See also U.S. Govt, securities): Banks, by classes, 18, 22, 24, 31 Federally sponsored agencies, 33 Commercial banks, 21,22, 28 International transactions, 78, 79 Federal Reserve Banks, 4, 12, 14 New issues, 39, 40, 41 Insurance companies, 32, 45 Silver coin and silver certificates, 15 Insured or guaranteed by U.S., 44, 45, 46 State and local govts.: Savings and loan assns., 32, 45 Deposits of, 23, 26 Holdings of U.S. Govt, securities, 36, 37 Manufacturers: New security issues, 39, 40 Capacity utilization, 56 Ownership of securities of, 22, 25, 31, 32 Production index, 53, 56 Prices and yields of securities, 29, 30 Margin requirements, 10 State member banks, 20, 21, 90 Member banks: Stock market credit, 30 Assets and liabilities, by classes, 18, 22 Stocks: Banking offices, changes in number, 90 New issues, 40, 41 Borrowings at Reserve Banks, 6, 12 Prices and yields, 29, 30 Deposits, by classes, 11 Number, by classes, 18 Tax receipts. Federal, 35 Reserve position, basic, 8 Time deposits, 10, 11, 16, 17, 18,23,26 Reserve requirements, 10 Treasurer’s account balance, 34 Reserves and related items, 4, 16 Treasury cash, Treasury currency, 4, 15, 17 Mining, production index, 53, 56 Treasury deposits, 4, 12, 34 Money rates (See Interest rates) Money supply and related data, 16 Unemployment, 58 Mutual funds (See Investment companies) U.S. balance of payments, 66 Mutual savings banks, 17, 18, 20, 31, 36, 37, 44, 90 U.S. Govt, balances: Commercial bank holdings, 23, 26 National banks, 20, 21, 90 Consolidated monetary statement, 17 National income, 62, 63 Member bank holdings, 16 National security expenditures, 35, 62 Treasury deposits at Federal Reserve Banks, 4, Nonmember banks, 20, 21, 22, 23, 90 12 , 34 U.S. Govt, securities: Open market transactions, 11 Bank holdings, 17, 18, 22, 25, 31, 36, 37 Dealer transactions, positions, and financing, 38 Federal Reserve Bank holdings, 4, 12, 14, 36, 37 Par and nonpar banking offices, number, 91 Foreign and international holdings, 12. 74, 78, 79 Payrolls, manufacturing, index, 56 International transactions, 74, 78 Personal income, 63 New issues, gross proceeds, 40 Postal Savings System, 10, 17 Open market transactions, 11 Prices: Outstanding, by type of security, 36, 37, 39 Consumer and wholesale commodity, 56, 60 Ownership of, 36, 37 Security, 30 Prices and yields, 29, 30, 85 Production, 52, 56 United States notes, 15 Profits, corporate, 42, 43 Utilities, production index, 53, 56 Real estate loans: Banks, by classes, 22, 24, 31, 44 Veterans Administration, 44, 45, 46 Delinquency rates on home mortgages, 47 Mortgage yields, 30, 47 Weekly reporting banks, 24 Nonfarm mortgage foreclosures, 47 Type of holder and property mortgaged, 44, 45,46 ' Yields (See Interest rates) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 19-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) a Legend “"“ Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories O Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis