Federal Reserve Bulletin, 1968-07

FEDERAL RESERVE B U LLETIN JULY 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 7 □ VOLUME 54 □ JULY 1968 CONTENTS 533 Recent Monetary and Credit Developments 545 Reappraisal of the Federal Reserve Discount Mechanism 552 Monetary Restraint and Borrowing and Capital Spending by Large State and Local Governments in 1966 " 582 Recent Changes in Structure of Time and Savings Deposits 602 Membership of the Board of Governors of the Federal Reserve System, 1913-68 604 Statements to Congress 628 Record of Policy Actions of the Federal Open Market Committee 638 Law Department 651 Announcements 653 National Summary of Business Conditions Financial and Business Statistics A- 1 Contents A- 3 Guide to Tabular Presentation A- 4 U.S. Statistics A- 70 International Statistics A- 91 Board of Governors and Staff A- 92 Open Market Committee and Staff; Federal Advisory Council A- 93 Federal Reserve Banks and Branches A- 94 Federal Reserve Board Publications A- 97 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony COMMITTEE 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 Monetary and Credit Developments DURING the first half of 1968, Federal Reserve monetary policy moved further toward restraint in an effort to moderate inflationary price and cost pressures. In the latter part of June, Congress enacted a program of fiscal restraint—including a tax increase and governmental expenditure reductions—and in reflection of this action interest rates declined from their recent peaks. During the winter and spring, interest rates, particularly short­ term rates, had risen appreciably in response to more restrictive monetary policy, uncertainty as to whether a program of fiscal restraint would be legislated, and continued relatively heavy de­ mands for credit by corporations, State and local governments, and the U.S. Government. The discount rate, which had been in­ creased in November 1967, was raised again in March and April. Moreover, member bank reserve requirements on demand deposits in excess of $5 million were also raised, and Federal Reserve open market operations were increasingly directed toward limiting the expansion of bank credit. FEDERAL RESERVE POLICY After following a monetary policy of relative ease during most of 1967, the Federal Reserve, with no tax action having been taken, moved toward restraint during the final months of the year in response to both domestic and international pressures on the dollar. As a result, the expansion of total bank reserves moderated Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

534 FEDERAL RESERVE BULLETIN □ JULY 1968 —growing at an annual rate of about 4 per cent from the end of November to mid-1968, approximately one-third the rate of in­ crease over the first 11 months of 1967. All of the growth since November reflects increased member bank borrowing at Federal Reserve Banks, which reached an average of more than $700 million in May and June as compared with $133 million in Novem­ ber 1967. Nonborrowed reserves have declined slightly since the end of November, as compared with expansion at a 14 per cent annual rate earlier. 1 [Expansion of member BANK RESERVES slows; BILLIONS OF DOLLARS TOTAL RESERVES NONBORROWED RESERVES BORROWINGS from Federal Reserve increase 1.0 BORROWINGS FROM FEDERAL RESERVE EXCESS RESERVES Monthly average of daily figures for member banks. Total and nonborrowed reserves are adjusted to exclude the effects of changes in reserve requirement percentages. Nonborrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. Excess reserves are total reserves less required reserves. Latest figures: June (preliminary). After allowing for factors draining member bank reserves and for the January increase in reserve requirements, Federal Reserve purchases of securities have contributed relatively little to expan­ sion of bank reserves and bank credit since monetary policy firmed late last year. From the end of November to mid-1968, the Federal Reserve System acquired about $3.7 billion, net, of Treasury securities through outright purchases or repurchase agreements. However, approximately 70 per cent of these acqui­ sitions were required to offset the drain on bank reserves resulting Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT MONETARY AND CREDIT DEVELOPMENTS 535 from a large outflow of gold during that period. In comparison, the Federal Reserve acquired $2.4 billion, net, of Treasury securi­ ties from the end of November 1966 to mid-1967, a period when there was almost no gold outflow. At the time of the devaluation of sterling and the increase in the British discount rate in November 1967, the Federal Reserve raised the U.S. discount rate from 4 to 41/2 per cent. Late in December the Board of Governors announced a two-stage increase in reserve requirements against demand deposits in excess of $5 million at member banks, effective around mid-January 1968. This action raised the reserve requirement from 1614 to 17 per cent for reserve city banks and from 12 to 121/2 per cent for other member banks and increased required reserves by about $535 million. In March, in response to large outflows of gold stemming from heightened speculation as to the possible devaluation of the dollar, the Federal Reserve again raised the discount rate, from 416 to 5 per cent. Moreover, Congress removed the requirement for the maintenance of gold reserves against Federal Reserve notes in March, releasing approximately $ 11 billion in gold with which to meet U.S. international obligations. In April, the discount rate was again raised—to 5% per cent— and Regulation Q ceilings were increased on all but the shortestterm negotiable time certificates of deposit in denominations of $100,000 or more. To preclude a large decline in CD’s at commercial banks as these funds began to move into higheryielding market securities, the Federal Reserve raised the maxi­ mum interest rate payable on CD’s from 514 per cent on all maturities to 5% per cent on 60-89 day maturities, to 6 per cent on 90-179 day maturities, and to 614 per cent on maturities of 180 days or more. The maximum rate on CD’s maturing in less than 60 days remained at the existing 5*6 per cent ceiling. INTEREST RATES Largely associated with the increased pressure on reserve positions of banks, short-term interest rates continued to rise throughout most of the first half of 1968. The Federal funds rate—the rate charged by banks for excess reserves made available to other banks—was above the discount rate during most of that period, rising to around 6 per cent, and sometimes above, in late spring. Commercial paper rates were pushed further upward as two in­ creases in prime lending rates at banks—in November 1967 and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

536 FEDERAL RESERVE BULLETIN □ JULY 1968 2 | SHORT-TERM interest rates continue to rise; LONG TERM rates fluctuate widely PER CENT PER ANNUM Monthly averages except FHA (based on quotations for one interest rate); corporate bonds, weighted averages of new day each month). Yields: 4-6 month prime commercial paper; publicly offered bonds rated Aaa, Aa, and A by Moody’s U.S. Treasury bills, market yields on 3—month issues; FHA, Investors Service and adjusted to an Aaa basis; U.S. Govt, weighted averages of private secondary market prices of new- bonds, market yields adjusted to 20-year constant maturity by home 30-year mortgages converted to annual yield (dash line U.S. Treasury; State and local govt, bonds, Moody’s Investors indicates periods of adjustment to changes in contractual Service. Latest figures: June except for FHA mortgages (Apr.). April 1968—made bank loans relatively expensive. Consequently, nonfinancial corporations relied heavily on the issuance of open market paper for funds during the first half of the year. Commer­ cial banks liquidated large quantities of Treasury bills as growth in their deposit sources of funds slowed, and this also contributed to the upward pressure on short-term rates. Around mid-May most short-term rates had surpassed the peak levels reached during the period of monetary restraint in 1966, with the 3-month Treasury bill rate briefly reaching a peak of 5.92 per cent. However in late May prospects for fiscal restraint improved, and most short-term market rates of interest declined from their recent peaks. The Treasury bill market was particularly sensitive to these changing expectations, and yields in that market dropped 40-60 basis points by midyear. Long-term interest rates, while fluctuating widely—in response to various developments in the Vietnam conflict, the proposed tax increase, and the gold crisis—also tended to move generally higher during the first half of the year. By mid-May most long­ term rates had surpassed their highs reached late last year, although they later dropped back somewhat in response to the passage of tax legislation. Corporate security offerings, although below the record levels reachedin 1967, remained large. With only moderate growth of internal funds, corporations continued to rely mainly on external financing. Borrowing in the capital Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT MONETARY AND CREDIT DEVELOPMENTS 537 markets by State and local governments also remained large through midyear. Moreover, in order to meet its heavy cash needs, the Federal Government undertook net cash borrowing of $4 billion in the first half of 1968, in sharp contrast to the net debt repayment of $11 billion during the same period a year ago. BANK CREDIT After growing rapidly last year, total loans and investments at commercial banks expanded at a more moderate 6.2 per cent annual rate in the first half of 1968, slowing somewhat further during the second quarter. With reduced deposit inflows and sus­ tained loan demand, banks drew heavily on the liquidity they had acquired in 1967, and sharply curtailed the net expansion of their security holdings. Although the growth in total bank loans moderated somewhat from the pace in the second half of 1967, some categories of loans maintained and even surpassed their rates of growth during that period. Business loans. Despite two increases in the prime rate—from 5l/2 to 6 per cent in November and from 6 to 6V2 per cent in April—business loans continued to expand at about the pace of last year. Much of the growth occurred during the second quarter, reflecting in large part borrowing not only to meet increased corporate income tax payments but also to finance the more rapid rate of inventory accumulation that began in the spring. Term loans (those with an original maturity of more than 1 year) have increased much more than usual since the end of 1967 and have contributed substantially to the recent increase in total business loans. While there is normally a surge in term loans at 3 | BANK CREDIT growth slows as banks reduce their security acquisitions PERCENTAGE CHANGE 1965 1966 1967 '68 1965 1966 1967 68 1965 1966 1967 '68 Percentage change in seasonally adjusted annual rates for all December 31, Interbank loans excluded. There was no change commercial banks based on monthly data. Data partly estimated in bank holdings of securities during the second quarter of as of last Wednesday of month, except for June 30 and 1968. Latest figure: June 30 (estimated). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

538 FEDERAL RESERVE BULLETIN □ JULY 1968 year-end—associated with tax-related borrowing by the extrac­ BANK LOANS PERCENTAGE CHANGE tive industries—such loans usually show little growth there­ BUSINESS after. The continued expansion this year reflects in part borrowing by primary metals producers for fixed capital expenditures and inventory accumulation, the latter presumably associated with the possibility of a steel strike during the summer. Aside from longer-term borrowing by mining and primary metals industries, textiles and services were the only industrial categories displaying more than usual expansion in bank borrow­ ing over the first half. Most other industries borrowed at about, or somewhat less than, the pace of recent years. However, in late spring manufacturers of durable goods began borrowing more at banks, probably associated with financing for inventory accumu­ Percentage change in seasonally ad­ lation by steel-using industries. Holdings of bankers’ acceptances justed annual rates for all commercial banks based on monthly data. by banks—which are included in business loan statistics—have “Other” is largely loans to nonbank financial institutions, real estate, con­ declined substantially since the first of the year, reflecting in part sumer, security, and agricultural loans. First half of 1968 estimated. the erosion of bank liquidity since that time. Other loans. While the aggregate of all other loans expanded less rapidly than during the last half of 1967, the rate of growth SECURITIES among the individual categories varied widely. Throughout most .................PERCENTAGE CHANGE of the first half of this year real estate loans maintained the more U.S. GOVERNMENT rapid rate of growth begun in the fall of last year, reflecting the relatively rapid rise in construction outlays and increased demands for mortgage financing. In the early summer, however, the expansion of these loans began to moderate, largely the result of the reluctance of banks to make long-term commitments in light of reduced deposit inflows. Consumer loans picked up substantially in the first half, associated mostly with the increase in automobile sales. Security loans on the other hand, after growing rapidly in the last half of 1967 in response to an unusually large volume of Treasury financing, have declined since the first of the year. Moreover, growth in loans to finance companies also declined, on balance, after late 1967, when two increases in the bank prime rate improved the cost advantage of issuing open market paper as compared with bank financing. Bank investments. Total security holdings of banks, after ex­ Percentage change in seasonally ad­ justed annual rates for all commercial panding rapidly throughout 1967, grew at a much more moderate banks based on monthly data. **Other” is largely municipals, PC’s, pace during the first half of 1968. However, banks lengthened the and Federal agency securities; ad­ justed in the first half of 1966 for maturity structure of their portfolios considerably as they acquired shift of $1 billion of PC’s from loans on June 30. First half of 1968 longer-term securities at the attractive yields available. With loan estimated. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT MONETARY AND CREDIT DEVELOPMENTS 539 demand remaining strong relative to deposit inflows, banks reduced substantially their holdings of short-term securities. Although no single statistical measure can adequately reflect the liquidity positions of banks, such indicators as the ratio of loans to deposits and of liquid assets to deposits suggest that by early summer banks had lost much of the liquidity they had built up last year. Bank holdings of U.S. Government securities have expanded at an annual rate of about 1.3 per cent since the first of the year, well below the 15 per cent rate of growth in the last half of 1967. In contrast with last year, all of this moderate increase was in longer-term securities, most of which were acquired during Treas­ ury financings. Large banks liquidated bill holdings almost con­ tinuously from late 1967 through mid-1968 as firmer monetary policy and rising interest rates reduced their deposit sources of funds. For the same reasons, bank acquisitions of other securities also slowed from the rapid pace of last year, particularly in the spring when the demand for business loans began to expand more rapidly. Banks had added substantial amounts to their security holdings in 1967, mostly State and local government securities and participation certificates. Late in the year and through the first half of 1968 acquisitions of these securities moderated, and in the second quarter, when the need for funds became more pressing, banks reduced substantially their holdings of short-term munic­ ipals. BANK DEPOSITS T , r Inflows of time and savings deposits at commercial banks, after expanding rapidly during most of 1967, slackened considerably during the first half of 1968 as market rates of interest pressed higher. Over the entire first half these deposits expanded at an annual rate of approximately 5 per cent, about one-third the pace of last year, and grew at an even lower 3 per cent annual rate following the end-of-March interest-crediting period at banks. As market rates surpassed the regulatory ceilings that banks could pay for such deposits, some individuals and businesses— particularly the more interest-sensitive holders of CD’s and con­ sumer-type deposits—shifted funds out of banks into higheryielding market securities. Late in 1967, after the devaluation of sterling and the increase in the U.S. discount rate, banks had found it difficult to sell all but the shortest maturity CD’s, even though offering rates were Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

540 FEDERAL RESERVE BULLETIN □ JULY 1968 at the maximum 5V2 per cent throughout the maturity range. TIME AND SAVINGS DEPOSITS___________ When money market pressures subsided temporarily after the first PERCENTAGE CHANGE ALL COMMERCIAL RANKS of the year, banks were able to reduce offering rates below the ceiling on CD’s maturing in less than 6 months, and by the end of February they had replaced most of the year-end decline in outstanding CD’s. Even though banks again moved to the ceilings in March— as business loan demand began to pick up and interest rates continued to rise—■ CD rates had become relatively less competitive as compared with yields on money market instruments, and out­ standing CD’s declined by $1.5 million from mid-March to mid­ Percentage change in seasonally ad­ April. In an effort to improve the competitive position of CD’s, justed annual rates for all commercial banks based on monthly averages of the Federal Reserve raised Regulation Q ceilings on CD’s maturing daily figures. Data adjusted to in­ clude balances accumulated for pay­ in 60 days or more. Although banks soon raised their offering ment ’ of personal loans which were eliminated from time deposits in rates to the new ceilings on all maturities, they were not able to June 1966. Expansion of INTEREST-BEARING DEPOSITS 4 at banks moderates BILLIONS OF DOLLARS PASSBOOK SAVINGS ACCOUNTS TIME DEPOSITS. OTHER THAN NEG. CD's NEGOTIABLE CD's Data are for weekly reporting banks as of last Wednesday of the 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 denominations of $100,000 or more. Latest figure; June (preliminary). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT MONETARY AND CREDIT DEVELOPMENTS 541 replace all of the maturing issues, and outstanding CD’s declined somewhat more through mid-June. However, with Treasury bill rates falling during June, pressure on the CD market began to ease. Late in the month and in early July banks added more than $880 million to their outstandings, and some large banks lowered offer­ ing rates to 6 per cent on longer-maturity CD’s. Growth in consumer-type time and savings deposits remained relatively strong early in the year, expanding at about the pace of the last half of 1967. However, inflows of these deposits slowed considerably soon after the interest-crediting period in March. In particular, there was a much more than normal $700 million reduction in passbook savings at large banks, where depositors presumably are more interest sensitive. Although pick­ ing up somewhat in May, growth in consumer-type time and sav­ ings deposits remained at a reduced pace throughout the balance of the first half. Following the midyear interest-crediting period in June, these deposits continued to grow, with gains in time certifi­ cates and open accounts more than offsetting small declines in savings accounts. LIABILITIES TO Commercial banks relied heavily on funds obtained in the Euro­ FOREIGN BRANCHES dollar market through their foreign branches to meet loan de­ mands during the first half of 1968. Most of the $1.7 billion increase in liabilities of head offices to their foreign branches oc­ curred during the second quarter, since earlier in the year banks had been able to attract sufficient time and savings deposits to meet the relatively moderate loan demand then prevailing. However, with the acceleration of loan demand and the further moderation of time and savings deposit inflows, banks made increasing use of the Euro-dollar market. During May and June alone, banks increased their liabilities to foreign branches approximately $1.5 billion, on a monthly average basis, more than three times the increase over the first 4 months of the year. NONBANK SAVINGS Inflows of saving deposits at nonbank savings institutions during INSTITUTIONS the first half of 1968 generally paralleled those of time and savings deposits at commercial banks. Rising market yields reduced the relative attractiveness of all deposit-type instruments issued by financial institutions and led to reduced inflows of funds to savings and loan associations and mutual savings banks. The moderation of inflows to nonbank financial institutions was much Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

542 FEDERAL RESERVE BULLETIN □ JULY 1968 less than at commercial banks, probably because of the greater interest-sensitivity of CD’s than of the types of deposits held at mutual savings banks and savings and loan associations. Neverthe­ less, the reduced availability of funds to these institutions, as well as uncertainties concerning future inflows, contributed to the recent tightening in mortgage markets. MONEY STOCK The money stock continued to grow during the first half of 1968 at about the 6.6 per cent annual rate of last year. Expansion was most rapid in the spring, when there was a much larger than usual decline in U.S. Government deposits. MONEY STOCK continues to grow while 5 U.S. Government deposits decline Seasonally adjusted monthly average 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 commercial banks and the U.S. Govt., cash items in the process of collection, and F.R. float, but include foreign demand balances at F.R. Banks. U.S. Govt, demand deposits are for member banks only. Latest figure: June (preliminary). While an increased need for transaction balances associated with the more rapid pace of expansion in economic activity since the first of the year explains some of the expansion in the money stock, it would seem that various uncertainties—related to the gold crisis in March, to prospects for fiscal restraint, and to the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT MONETARY AND CREDIT DEVELOPMENTS 543 future course of monetary policy and interest rates—apparently have also resulted in the accumulation of some precautionary balances. Moreover, the sharp rise in stock market activity in the second quarter, with attendant delays in processing transfers and payments, has probably led to the holding of more than normal amounts of money balances. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Reappraisal of the Federal Reserve Discount Mechanism On July 22, 1968, the Federal Reserve made Thirdly, the report recognizes that the public the report of a System committee Federal Reserve serves as “lender of last re­ which has completed an intensive, 3-year re­ sort” to buttress the entire financial system study of Federal Reserve lending policies. in the event of widespread emergency. Within The document, entitled “Reappraisal of the the limits of existing law, and lending pri­ Federal Reserve Discount Mechanism,” re­ marily through the conduit of member banks, affirms three long-established principles of the Federal Reserve is prepared to supply Federal Reserve lending, but it also proposes liquid funds to other groups of financial in­ several significant changes in lending policies stitutions when such assistance is not avail­ and procedures aimed at providing more lib­ able elsewhere and is necessary to avoid ma­ eral and clear-cut access for member banks jor economic disruption. to Federal Reserve lending facilities.' Thus redesigned, the “discount window”—as the SIGNIFICANT NEW ELEMENTS Federal Reserve Banks’ lending facilities are often called—is expected to play a more ac­ To provide more clear-cut access to Federal tive part in enabling commercial banks to Reserve lending facilities, the report pro­ more effectively meet their communities’ poses that each soundly operated member credit needs. bank be given a “basic borrowing privilege,” enabling it to borrow limited amounts of BASIC PRINCIPLES REAFFIRMED funds from its Reserve Bank upon request in First among the basic principles governing as many as half of its weekly reserve periods. the use of Federal Reserve credit is that Fed­ In addition, it is proposed that any mem­ eral Reserve System lending is to accommo­ ber bank foreseeing large seasonal bulges in date bank asset and liability adjustments over its needs for funds would be able to arrange limited time periods and to meet essentially for loans from its Reserve Bank to help meet short-term fluctuations in member bank all such needs in excess of a specified mini­ needs for funds. Coordinately it is intended mum. This arrangement, more explicit and that individual member banks shall not be more liberal than currently provided, is continuously and permanently in debt to the termed the “seasonal borrowing privilege.” Federal Reserve. Member banks experiencing drains of The second principle reaffirmed, however, funds that are not of a seasonal or emergency is that Federal Reserve Banks always stand nature, but that are bigger or longer in dura­ ready to lend to any of their member banks tion than can be accommodated under the caught in special regional or local adversi­ new “basic borrowing privilege,” are not pre­ ties—such as droughts, drastic deposit drains, cluded from short-term borrowings from or other emergencies—for as long as reason­ their Reserve Banks pending a prompt re­ ably needed for the bank to work out of these versal of their fund outflows or an orderly circumstances. adjustment of their assets and liabilities. i Copies of this report are available on the terms shown on Such borrowings would be subject to essenp. A-94. 545 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

546 FEDERAL RESERVE BULLETIN □ JULY 1968 tially the same kinds of administrative pro­ able proportion of their total required re­ cedures now applied to member bank bor­ serves on the security of such customer notes. rowings from their Reserve Banks. During the next 20 years, however, member A final major new idea proposed by the banks accumulated large amounts of U.S. report is to make the discount rate—the in­ Government securities and other liquid as­ terest rate charged by Federal Reserve Banks sets; accordingly, they did very little bor­ on their loans to member banks—more flex­ rowing from their Reserve Banks and col­ ible than heretofore. It is recommended that lateralized such borrowing as they did with the discount rate be changed considerably Government securities. This marginal role more frequently, to keep it reasonably closely for the discount window was recognized in in line with the movements in other money a formal change in 1955 in the Board’s Reg­ market rates. ulation A covering loans to member banks; under that revision, bank borrowings from the Federal Reserve were to be limited to STATUS OF THE DISCOUNT REPORT assistance over the peaks of temporary, sea­ The report was adopted unanimously by a sonal, or emergency needs for funds that ex­ study committee made up of three members ceeded the dimensions that the banks them­ of the Board of Governors and four Federal selves were capable of reasonably meeting Reserve Bank Presidents. None of its recom­ out of their own resources. mendations has been acted upon by the In the last decade or so, however, credit Board. The report is being made generally demands on banks have grown and loan-toavailable so that comments and suggestions deposit ratios are much higher. Moreover, of the banking community and the public at at many banks more sophisticated portfolio large may be considered before any revision management has pared liquidity positions of Regulation A, the Board’s rule governing substantially. Borrowings from other sources lending to member banks, is published. Time than the Federal Reserve have expanded. In will be allowed for careful and intensive con­ view of these developments, the proposed re­ sideration of the proposals both within and design of the discount mechanism is aimed without the System before any final decisions at relating Federal Reserve lending more on the matter are made by the Board. clearly and closely to the changing banking and community needs. EVOLUTION OF THE DISCOUNT MECHANISM BASIC BORROWING PRIVILEGE The proposed redesign represents the latest in a series of evolutionary changes in Federal The most commonly used of the new lending Reserve lending policies and procedures. provisions for member banks in good stand­ When first established by the Federal Reserve ing would undoubtedly be the basic borrow­ Act in 1913, the discount mechanism was ing privilege because it would provide credit expected to operate by member banks pre­ up to specified time and amount limits on a senting certain types of short-term customer virtually no-questions-asked basis. notes (termed “eligible paper”) as collateral The size of each bank’s basic borrowing for borrowing at the Reserve Banks. During privilege would be established as a proportion most of the first 20 years of Federal Reserve of that bank’s capital stock and surplus. The operation, member banks borrowed a siz­ present proposal calls for each bank to have Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REAPPRAISAL OF DISCOUNT MECHANISM 547 a basic borrowing privilege equal, on a re­ The considerations will be that individual serve-period-average basis, to between 20 credit access should not be so small nor so per cent and 40 per cent of its capital stock infrequently available as to be insignificant and surplus up to $ 1 million, between 10 per to the member banks, nor should total access cent and 20 per cent of its capital stock and be so liberal as to exceed the ability of the surplus between $1 million and $10 million, Federal Reserve to undertake any necessary and 10 per cent of its capital stock and sur­ offsetting open market operations. (Adjust­ plus in excess of $10 million. Thus a bank ment credit beyond these limits will be avail­ with $ 1 million of capital stock and surplus able, as described elsewhere, to any member could borrow between $200,000 and $400,­ bank having a justifiable need larger or 000 on each day of the 7-day reserve period longer in duration than could be accommo­ or between $1,400,000 and $2,800,000 on dated within the basic borrowing privilege, one day during the period. and therefore the basic borrowing privilege Frequency of use of the basic borrowing does not represent the maximum Federal privilege would also be limited. This is nec­ Reserve credit to which the member bank essary because Federal Reserve credit is not could have access and need not encompass properly a long-term or permanent addition all bank needs which may be expected to to the loanable funds of individual member arise.) banks. The aim is to make credit available Borrowing within the basic-borrowing­ over a long enough period to cushion the privilege limitations could, as noted, take bulk of short-term fluctuations or asset ad­ place virtually upon request, unless the Re­ justments and in most cases permit orderly serve Bank has notified the member bank adjustment to longer-term movements of that its over-all condition is unsatisfactory funds. as determined by such factors as adequacy The proposed frequency limitation would of capital, liquidity, soundness, management, allow access to credit so long as the bank is or noncompliance with law or regulation and indebted in no more than half the reserve that such unsatisfactory condition is not periods in the interval—that is, so long as being corrected to the Reserve Bank’s satis­ the bank does not use adjustment credit in faction. The only other circumscription on more than 6 (or up to 13) of the 13 (or up the actions of a qualified borrowing bank to 26) consecutive reserve periods ending would be the avoidance of net sales in the with the current period. Thus, whether a Federal funds market during the reserve pe­ member bank is eligible to use its basic bor­ riods in which it was borrowing from the rowing privilege at any time is established Federal Reserve. This administrative rule, by examining its record of borrowing at the already in force, is being continued in the window for adjustment purposes for the pre­ interest of precluding retailing operations in vious 12 (or up to 25) reserve periods. Federal Reserve credit obtained through the Before the plan is finally made effective, discount window. It is, of course, recognized choices will be made in the light of comments that circumstances might occur as a result of received as to the particular percentages miscalculations or large unforeseen move­ within the indicated ranges which would ap­ ments in the bank’s position, in which net ply to the amount and frequency limitations. selling of funds would be extremely difficult Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

548 FEDERAL RESERVE BULLETIN □ JULY 1968 to avoid. In such infrequent situations this differences. Close contacts among the Fed­ rule would be waivable. eral Reserve Banks’ discount officials will be maintained in the interest of dealing uni­ OTHER ADJUSTMENT CREDIT formly with similar cases. It is recognized that basic borrowing priv­ SEASONAL BORROWING PRIVILEGE ileges would not be large enough to encom­ pass every member bank’s needs for funds in The third general category of credit which all instances that justify the use of discount would be available to member banks at the credit. This is particularly true in cases of proposed discount window is called the “sea­ the larger banks, which borrow infrequently sonal borrowing privilege.” A Reserve Bank but for rather large amounts, but it is also would be prepared to establish such a “sea­ true in the case of smaller banks faced with sonal borrowing privilege” for any member sharp temporary drains of funds. Arrange­ bank experiencing demonstrable seasonal ments are therefore recognized as necessary pressures persisting for a period of at least to permit member bank borrowings outside 4 weeks and exceeding a minimum relative the basic borrowing privilege up to the limits size. It is expected that this borrowing priv­ of appropriate needs on as convenient and ilege will be of value principally to smaller understandable terms as possible. These ar­ units in agricultural or resort areas in which rangements are referred to in the report as seasonal swings have a substantial impact “other adjustment credit” and are virtually on the entire community and where access identical to the arrangements presently ex­ to the money markets or other adjustment isting for the use of discount credit on such resources is not always readily available. a scale. The existence of seasonal pressures would When a member bank uses “other adjust­ be judged on the basis of past years’ patterns ment credit,” it should expect that the cir­ of loan and deposit fluctuations. Totally new cumstances of its borrowing would come un­ seasonal pressure, such as might be occa­ der examination in some detail. In many sioned if a new industry with a strong sea­ cases this would consist of a review of in­ sonal pattern moved into a small town, would formation available at the Reserve Bank. not justify establishment of a seasonal bor­ Hence it would involve no immediate contact rowing privilege in the first year. The result­ with the member bank, especially if this re­ ing credit needs could be accommodated un­ view clearly showed continued credit exten­ der other adjustment credit arrangements, sion to be appropriate. However, if the use however, with recognition that this was in of “other adjustment credit” becomes more fact a justifiable need, and in succeeding extended in amount and time, the Reserve years a seasonal borrowing privilege could Bank would follow the case more closely and be formally established. directly. In due course, the bank would be The establishment of a qualifying seasonal expected to outline its plan and timetable of swing in net availability of funds (defined as adjustment and thereafter to carry it out. The the net of deposits minus loans to customers circumstances surrounding individual bor­ in the bank’s market area would ordinarily rowing cases will differ widely, and as now be fixed by negotiation once a year. The the precise timing and nature of these ad­ basic data to be used in this determination ministrative actions would be related to such would in most cases be already on file at the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REAPPRAISAL OF DISCOUNT MECHANISM 549 Reserve Banks. The proposal suggests that The amount of credit arranged for during where feasible the determination of a sea­ the original negotiation of a seasonal bor­ sonal borrowing privilege might best be ac­ rowing privilege would not normally be complished prior to the actual credit need, revised in mid-season, but the proposal rec­ since this would permit more orderly plan­ ognizes that unforeseen developments essen­ ning on the part of both the borrowing bank tially afford the need for seasonal credit. and the Reserve Bank. Tn such unusual circumstances renegotiation Once the existence of a qualifying seasonal would be allowed. Likewise, the Reserve Bank would, under normal circumstances, need was established, the Reserve Banks abide by the original negotiations. Only in would agree to extend discount credit up to the case of a clear and significant change in the qualifying amount and for the length of the bank’s need or flagrant abuse of the sea­ time the need was expected to persist, up to sonal borrowing privilege would a Reserve 90 days. The 90-day maximum is imposed Bank exercise its option to curtail an out­ by statute; however, should the need extend standing seasonal credit arrangement. over a longer period than this, the Reserve Borrowings under the seasonal borrowing Banks would regard renewals of credit as in privilege would not be counted in determin­ accordance with the initial seasonal credit ing a bank’s eligibility to use its basic bor­ negotiation. Seasonal credit needs would rowing privilege as described above. normally be expected to last for several months, but in exceptional cases could range EMERGENCY CREDIT up to as much as 9 months. Seasonal credit obtainable at a Reserve The proposed redesign of the discount win­ Bank would be limited to the amount of the dow would provide that the Federal Reserve borrowing bank’s seasonal swing in excess continue to supply liberal help to its mem­ of a specified percentage of its average de­ ber banks in emergency situations. So long posits in the preceding year. This “deduct­ as the member bank is solvent and steps are ible” principle, requiring a bank to meet a being taken to find a solution to its problems, part of its seasonal need out of its own re­ credit would be available on the same basis sources, is designed to encourage individual as it currently is, and, within the limits of bank maintenance of some minimum level of the law, ad hoc arrangements would continue liquidity for purposes of flexibility. It also to be made where necessary. Assisting a bank serves effectively to limit the aggregate in an emergency situation would generally amount of credit extended under the sea­ require credit extension for periods longer sonal borrowing privilege to an amount con­ than would normally be allowed at the win­ sistent with over-all monetary policy, while dow, but this would be expected and re­ allowing the Federal Reserve to provide garded as appropriate. this assistance to all those member banks In addition, the redesigned window would with relatively large seasonal needs. The pre­ recognize the possibility that the Federal cise level of the deductible percentage would Reserve, in its role as lender of last resort to lie in the range of 5 to 10 per cent of average other sectors of the economy, might in ex­ deposits, with the final choice again to be treme conditions find it necessary to extend made by the Board in the light of comments circumscribed credit assistance to institu­ received. tions other than member banks. This action Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

550 FEDERAL RESERVE BULLETIN a JULY 1968 would be taken only when all other sources erations are still envisioned as the main tool of credit had been exhausted and failure of of monetary policy, the proposed changes in the troubled institutions would have a sig­ discount operations would be expected to nificant impact on the economy’s financial lead to a generally higher level of borrowing structure. When lending to nonmembers, the being done by a rotating group of member Federal Reserve would act in cooperation banks. Such a higher level of borrowing with the relevant supervisory authority to would not, however, mean a corresponding insure that steps are taken to find a solution increase in total reserves, since increased to its problems. Credit would normally be ex­ borrowing would be expected to be about tended through a conduit arrangement with offset by correspondingly smaller net Sys­ a member bank and would be provided at tem purchases of securities in the open mar­ a significantly higher rate than the prevail­ ket. ing discount rate. The study committee recognizes that a period of transition would undoubtedly be required before the full potential of the pro­ RELATED CONSIDERATIONS posed redesign of the discount window could The proposed discount window does not in­ be realized by either the Federal Reserve or clude the provision of intermediate- or long­ the member banks. However, it believes that term credit to meet the needs of banks serv­ this redesign can bring the mechanism into icing credit-deficit areas or sectors—that is, closer touch with the prevailing economic areas or sectors where the opportunities for climate and lead to a more effectively func­ profitable investment continuously outstrip tioning member banking system. the savings generated locally. While this is The table at the end of this statement recognized as a problem of some significance, summarizes the proposals contained in the it was concluded that attempting to solve this current report. It outlines the several comple­ problem through the discount window would mentary arrangements for borrowing at the involve socio-economic and political deci­ window, each designed to provide credit for sions outside the proper scope of System re­ a specific type of need. These are: the basic sponsibility. It was also felt that financing the borrowing privilege, column (1); other ad­ expansion of loan portfolios far beyond the justment credit, column (2); the seasonal limits of deposits through the provision of borrowing privilege, column (3); and emer­ long-term discount credit would seriously gency credit assistance, both to member and in some cases dangerously distort the banks, column (4), and to other financial normal balance sheet structure of commer­ institutions, column (5). cial banks. The study committee con­ cluded that an appropriate and effective so­ SUPPORTING RESEARCH lution to the problem was most likely to be found in the improvement of secondary mar­ Besides the final report of the committee it­ kets for bank assets and liabilities. Detailed self, there has also been prepared a summary studies of the feasibility of actions to promote report on the research undertaken in connec­ such improvement are expected to begin in tion with the study. This report, entitled the near future. “Report on Research Undertaken in Con­ While Federal Reserve open market op­ nection with a System Study,” by Bernard Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REAPPRAISAL OF DISCOUNT MECHANISM 551 Shull, Director of Research Projects, will be Discount Mechanism,” by Clay J. Anderson. made available to the public upon request. “A Review of Recent Academic Literature on the Discount Mechanism,” by David Jones. In addition, the System plans to make “A Study of the Market for Federal Funds,” by available to interested persons copies of vari­ Parker Willis. ous of the individual research papers pre­ “A Secondary Market for Negotiable Certificates pared for the discount study. The first of the of Deposit,” by Parker Willis. additional papers made available will be: “Reserve Adjustments of the Eight Major New York Banks During 1966,” by Dolores Lynn. “The Discount Mechanism in Leading Indus­ The availability of other research papers trial Countries Since World War II,” by George will be announced as their preparation is Garvy. “Evolution of the Role and Functioning of the completed. SUMMARY OF PROPOSAL FOR REDESIGN OF DISCOUNT MECHANISM Emergency Emergency Basic borrowing Other adjustment Seasonal borrowing credit to credit to hem privilege credit privilege member banks others (0 (2) (3) (4) (5) Definition Member bank access Supplemental dis­ Member bank access Credit extended to Credit extended to to credit upon re­ count accommoda­ to credit on a longer- member banks in institutions other than quest, within pre­ tion, subject to term and, to the unusual or exigent member banks in cisely stated limits on administrative proce­ extent possible, pre­ circumstances. emergency circum­ amounts and fre­ dures, to help a arranged basis to stances in fulfilling quency and . on member bank meet meet demonstrable role as lender of last specified conditions. temporary needs that seasonal pressures ex­ resort to the economy. prove either larger ceeding minimum or longer in duration duration and rela­ than could be cov­ tive amount. ered by its basic borrowing privilege. Rate Discount rate Discount rate Discount rate. Discount rate. Significantly higher rate than discount rate. Quantity -----(20-40) per cent None specified. Seasonal needs in None specified. None specified limitations of first $1 million excess of ——(5-10) capital stock & sur­ per cent of average plus plus-----(10-20) deposits subject to per cent of next reserve requirements $9 million, plus in preceding calendar -----(10) per cent of year. remainder. Frequency or -—(6-13) of any None specified. Need and arrange­ None specified. None specified. duration limitations ——(13-26) consecu­ ment must be for tive reserve computa­ more than 4 weeks. tion periods. Maximum 9 consecu­ tive months. Administrative proce­ None other than gen­ Appraisal and, where Prearrangement in­ Continuous and thor­ Continuous and thor­ dures eral discouragement necessary, action volves discussion be­ oughgoing surveil­ oughgoing surveillance of net selling of Fed­ broadly similar to tween discount officer lance. (may have to be through eral funds by borrow­ procedures developed and bank manage­ Require that bank conduit). ing banks. under existing dis­ ment concerning develop and pursue Require that institu­ count arrangements. amount, duration, workable program for tion develop and pur­ and seasonality of alleviating difficulties. sue workable program need. for alleviating difficul­ Administrative re­ ties. view maintained dur­ ing borrowing to pre­ vent abuse or misuse. Other restrictions Must not have been None specified. None specified. None specified. Required to use all found to be in unsat­ other practicable isfactory condition. sources of credit first. Method of provision Direct. Direct. Direct. Direct. (I) through central agency; (2) direct; (3) conduit through mem­ ber bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Monetary Restraint and Borrowing and Capital Spending by Large State and Local Governments in 1966 By Paul F. McGouldrick and John E. Petersen In 1967, the Federal Reserve System con­ in which they borrow are important to their ducted two surveys on the impacts of chang­ fiscal behavior. Both, therefore, influenced ing credit market conditions in 1966 on both the design of the survey and are relevant to large and small State and local governmental the interpretation of its results. These char­ units throughout the United States. This ar­ acteristics are summarized and discussed in ticle reports and analyzes the results of the Appendix A. Appendix B sets forth the first of these surveys, that covering approxi­ structure and mechanics of the survey itself. mately the 1,000 largest State and local gov­ The questionnaire form is reproduced in ernments. A later article will analyze the re­ Appendix C. sults of the companion survey of nearly 13,000 small and middle-sized State and SUMMARY local units. The survey of the long-term borrowing and This article first gives a brief summary of capital spending experiences of the largest the large-unit survey’s findings. Next, prob­ State and local governments during 1966 lems involved in evaluating and measuring disclosed a considerable impact of high and the impact of interest rates on State and local rising interest rates on the debt financing government borrowing and expenditure be­ of these governments. Altogether, 1966 havior are discussed. After summarizing long-term borrowings were reduced by an the design and scope of the large-unit survey estimated $1.4 billion, an amount equal undertaken by the System, the results are to about 20 per cent of planned levels, pri­ presented and analyzed in detail. marily because of the high cost of borrow­ Both the special institutional structure of ing. In addition, these large State and local State and local governments and the market units temporarily postponed, primarily be­ cause of restrictive credit conditions, $370 Note.—This report is based on the Federal Reserve million in bond offerings, which were sub­ System survey described in the article and its technical appendixes. It has benefited from the work of Federal sequently sold during the year. Reserve Bank officials who supervised the survey in The deferral of long-term borrowings did the field and edited the results. At the Federal Reserve Board, Peter Keir and Edward Ettin were intimately not result in equivalent reduction in capital associated with survey planning, both as chiefs of outlays within that period. During 1966, the Capital Markets Section and as members of the sub­ committee of the System Research Advisory Commit­ cutbacks in contract awards on capital proj­ tee which exercised over-all supervision of the survey. ects amounted only to about $120 million, Other members of that subcommittee were the chair­ man, Robert Eisenmenger (Boston Bank); William about 80 per cent of which was due to high Staats (Philadelphia Bank); Maurice Mann (Cleve­ interest rates. Allowing for additional award land Bank); Lynn Stiles (Chicago Bank); and the cancellations not occurring until 1967, reauthors of this article. 552 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

553 ductions in current expenditures and capital public investment is not altogether satisfac­ spending on projects already under way, and tory. Generally, governments do not com­ stretching out of cash disbursements, it is pete with other units in selling their goods estimated that borrowing shortfalls in 1966 in free markets. Nor can their behavior be resulted in about a $250 million reduction explained by a logical system in which they in spending by large units throughout 1966 are expected or compelled to maximize and 1967. This is equivalent to approxi­ profits or some other readily quantifiable in­ mately a 1 to 1.5 per cent cutback in their dex of activity. capital outlays for that period. While simple notions of the maximiza­ Most of governments surveyed were able tion of profits or preferences do not neatly to proceed with their spending plans by fall­ describe the decisions of governments in de­ ing back on liquid asset holdings or by bor­ termining and meeting social needs, a rise rowing short-term or because they routinely in the interest rates paid by them might be borrowed well in advance of actual cash expected to generate one or more of the needs. But 1966 followed several years of following reactions, unless government de­ relatively placid conditions in the capital mand schedules for long-term borrowed markets, which had afforded State and local funds are completely inelastic: 1 governments ample opportunity to build (1) Government units could increase tax cushions of liquidity. The financial flexibil­ rates to compensate for reductions in planned ity displayed in 1966, which insulated most borrowing. spending from interruptions in borrowing (2) They could shift from long-term to plans, might well be lessened over a sus­ short-term borrowing in order to postpone tained period of credit restraint. their definitive financing plans until borrow­ ing costs are lower. THE PROBLEM OF INTEREST RATE IMPACTS (3) They could reduce current expendi­ tures, reduce capital outlays and new outlay Higher interest rates might be expected to commitments, or draw down their liquid have a negative impact on State and local assets. borrowing and capital spending for at least (4) The could seek and obtain inter­ two reasons. First, taking the shorter view, governmental grants or loans. an increase in the interest rate raises the (5) Finally, governments that ordinarily current cost of debt service in an area of the borrow well in advance of capital outlay economy where revenues are relatively in­ needs could postpone borrowing to a date flexible in the short run. Taking the longer immediately prior to actual cash disburseview, an increase in the cost of borrowing to finance long-lived physical assets means 1 Throughout this article “governmental” and “gov­ that the capital facilities themselves have ernments” refer to State and local government units, gone up in price. Potential borrowers, exam­ including special districts and authorities, except when specified otherwise. “Long-term borrowing” refers to ining the alternatives, might thus desire to borrowing of one year or longer original maturity. postpone or abandon the acquisition of such “Bond offerings" are bond issues at the date when the lowest bid was accepted (for competitively bid issues) assets. or the underwriting agreement or other borrowing However, application of conventional agreement was signed. The survey asked respondents to time all borrowings, by month and year, by the economic theory in an effort to determine offering date of the bond, not by the date of issue. The the impact of market rates of interest on date “1966” refers only to calendar 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

554 FEDERAL RESERVE BULLETIN □ JULY 1968 ments. Borrowing postponements of this In view of the lack of information about kind result in gaps between actual and pre­ the relative importance of the possible var­ viously desired liquid asset levels. ious responses to high and rising interest The empirical literature on how State and rates, the Federal Reserve survey was de­ local governments in fact have responded to signed with the following two objectives: credit market conditions is sparse.2 But it First, to measure the impact of credit con­ does indicate that these governments have ditions on the long-term borrowing of State cut back on their borrowing when interest and local governments and their capital out­ rates were above their upward postwar trend lays.4 Second, to determine the degree of de­ and that they borrowed more when rates pendence between long-term borrowing and were below that trend; there has been no spending decisions, and to identify and measured response to the upward trend it­ measure factors which influence that link­ self. Moreover, this literature is inconclusive age. as to whether or not these governments cur­ tailed their capital outlays following borrow­ DESIGN AND SCOPE OF THE SURVEY ing curtailments in periods of monetary All State and local governments above the restraint. lower size limits shown in Table 1 were Measurement of the impact of interest included in the survey of calendar 1966 rates on capital outlays is complicated by the interaction of long, structural lags in TABLE 1 public construction projects and of the gen­ LOWER SIZE LIMITS FOR SURVEY OF BORROWING eral shortness of cyclical periods of rising in­ AND CAPITAL SPENDING OF LARGE GOVERN­ MENTAL UNITS IN 1966 terest rates. Public capital outlays are much more heavily weighted by the structures Type of unit Size, limit, and unit of measurement component than are business investment County 250,000 population City or township 50,000 population outlays; and the construction of such long- School district 25,000 enrollees Special district (local) $5,000,000 debt outstanding lived facilities is peculiarly insensitive to State All regardless of size State agencies All, except very small ones 1 State institutions of higher short-run changes in underlying demand for education All, except very small ones * capital services because of the long period of 1 The meaning of “very small” is imprecise; the U.S. Bureau of time needed for planning, site acquisition, the Census lists that were used to select the 100 per cent sample ex­ cluded some units in these classes for administrative reasons. But a and construction.3 comparison of these lists with such sources as American Colleges and Universities indicated that middle-sized and all large universities and other higher-education institutions (including junior colleges) were included in the sample. The sample also had most State 3 For a summary of that literature, see Paul Mc- agencies. Gouldrick, “The Effect of Credit Conditions on State and Local Bond Sales and Capital Outlays Since World * The decision to focus on long-term borrowing and War II,” State and Local Public Facility Needs and capital outlays was made for these reasons: (1) the Financing, vol. 2, U.S. Congress, Joint Economic unique relationship between long-term borrowing Committee, 89th Cong., 2d Sess., Washington: U.S. (debt of more than 1 year in maturity) and capital Government Printing Office, 1966. outlays, a sizable proportion of which are 100 per cent ’ In fiscal year 1965-66, construction expenditures debt-financed; (2) the greater postponability of these made up over 90 per cent of State and local capital decisions in comparison to those involving current outlays exclusive of outlays for land and existing revenues and short-term borrowing; (3) the much structures. In contrast, expenditures on new nonresi- greater total financial cost consequences involved in dential structures amounted to only about a third of decisions to borrow long-term as compared to those total private fixed investment in 1966. U.S. Bureau of involved in temporary borrowing decisions, and (4) the Census, Governmental Finances in 1965-66, p. the dollar volume of long-term borrowing is typically 21; U.S. Department of Commerce, Survey of Current nearly twice as great as that involved in short-term Business, vol. 47 (June 1967), p. 21. borrowing. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 555 TABLE 2 NUMBER OF STATE AND LOCAL GOVERNMENTS RESPONDING, BY MAJOR BORROWING EXPERIENCE AND TYPE OF UNIT Type of unit AU , State Experience types City Special School institu­ County or district district State State tions of town (local) (local) agency higher education (I) Borrowed; (a) No change, in plans 1................................ 371 34 159 38 32 16 29 63 (h) Plans changed 1 ....................................... 69 5 26 5 4 7 5 17 (7.) Intended to borrow but did not.................... 53 4 23 8 5 3 10 (3) No intention to borrow................................. 494 60 129 100 50 2 25 80 50 All respondents.............................................. 987 103 337 151 91 48 117 140 1 Respondents were asked whether they had postponed, reduced, 2 Includes two States that did not submit forms but wrote that and/or abandoned any long-term borrowing whatsoever. If they they borrowed only through State agencies, as well as one (Virginia) checked “no” (after indicating that they had borrowed), they were that never borrows as a State for policy reasons. included in line (l)(a); if they checked “yes,” they were included in line (l)(b). borrowing and capital outlay experiences Types of questions asked. Besides being which was conducted from August to early limited to information for the year 1966 October 1967.5 Table 2 gives a breakdown (except for one query on lagged effects of of respondents by type of governmental unit. borrowing difficulties on capital spending), The questionnaire did not ask for com­ the questions were framed in terms of spe­ parisons between borrowing and spending cific actions, such as reductions, postpone­ in 1966 and that of earlier years; nor did it ments, accelerations, or abandonments of ask about plans and their realizations in ear­ borrowing and capital outlays. Governments lier years. Thus the survey shows activity were asked not only whether they had taken over a discrete interval of time rather than such actions but also to estimate, as best they over successive periods. Moreover, it is could, the dollar amounts involved. They directly concerned with changes in plans were also asked to rank suggested reasons rather than with their original formulation. for these actions (as well as an “other” cate­ Survey results are, therefore, most useful in gory, where they could put down their own gauging the immediate impacts, rather than reasons) by the relative importance to them in measuring the long-term or secular influ­ at the time the decisions were made. ences of financial factors on borrowing and To minimize the problems of response spending decisions. bias in determining the impact of interest rates on decisions, respondents were first ' These size measurements and limits conform to those used by the U.S. Bureau of the Census for their asked about the impact of interest rates and annual surveys of government finances. Size, of course, other variables on the borrowing plans of might be measured by variables other than those given the government and then asked whether in Table 1. Using these particular parameters meant, for example, the exclusion of a number of counties in postponements, reductions, or abandon­ the South which, although not so populous as counties ments of borrowing had resulted in changes in other parts of the country, nevertheless have rela­ tively large fiscal operations since they carry out many in actual or intended capital outlays. In this of the functions that are typically conducted by cities way, the questionnaire attempted to follow and townships elsewhere. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

556 FEDERAL RESERVE BULLETIN □ JULY 1968 the sequence of changes in borrowing and year.8 An additional 53 units had intended capital outlay plans and also to allow for to borrow, but found it necessary or desir­ factors other than interest rates as well as the able to abandon all plans of doing so. Thus rates themselves. the total of governmental units is almost Response rate. The response rate was very equally divided between those units having high. A total of 987 governments out of the had at least an intention to borrow (493) 1,053 surveyed, or 94 per cent, returned and those reporting no intention to borrow completed forms. The 6 per cent that did long-term in 1966 (494). not respond undertook only 3 per cent of One quarter of those units that expressed all large-unit borrowing in 1966.6 The non­ at least an intention to borrow long-term in respondents were not concentrated in any 1966 found it necessary to alter their plans one type-of-government class or region.7 in one way or another. Among the types of governmental units, State higher educational GENERAL BORROWING EXPERIENCES institutions had the highest frequency of Of the 987 State and local governments re­ alterations in plans: 27 out of the 90 poten­ plying to the survey, somewhat less than tial borrowers. half, or 440 units, actually borrowed long­ The dollar volume of long-term borrow­ term funds in 1966. (See Table 2.) Of these, ing actually accomplished in 1966, as com­ 69 had modified their borrowing plans pared with that originally planned for that downward, either by reducing the amount " The different types of changes in plans are taken they had originally planned to borrow or by up in detail below. The term downward is used to temporarily postponing offerings during the denote actions that led either to a reduction in the amount actually borrowed or a failure to borrow at • Borrowing by nonrespondents was obtained from the time originally planned. It should be borne in Moody’s Municipal and Government Manual 1967 mind that distinction between changes in amount and (New York, 1967); that by respondents from the in timing is a function of the length of the period of survey. time covered by the survey. That is, had we chosen to 7 All State governments responded to the survey ex­ look at a longer interval of time, much of the shortfall cept Alabama and Missouri. in borrowing would prove to be postponements. TABLE 3 ACTUAL AND PLANNED LONG-TERM BORROWING OF STATE AND LOCAL GOVERNMENTS IN 1966, BY TYPE OF EXPERIENCE AND PURPOSE (In millions of dollars) Purpose of borrowing Experience Total Health Adminis­ Utilities Educational Transpor­ and trative Other facilities tation welfare facilities (1) Planned borrowing *,..................... 7,563 1,243 2,214 2,263 412 304 1,127 (2) Net change in planned borrowing.......... -1,360 -237 -219 -589 -108 -25 -182 (a) Reduction........................................... 2-105 -11 -63 -29 -1 (3) -1 (b) Increase............................................... 34 5 10 9 6 4 (cj Abandonment (includes postpone­ ments beyond 1966)............ -1,289 -231 -166 -569 -107 -31 -185 (3) Actual borrowing..................................... 6,203 1,006 1,995 1,674 304 279 945 (4) Ratio of actual to planned borrowing (per cent).............................................. 82 81 90 74 74 92 84 1 Line (3) minus line (2). 3 Less than $500,000. 2 Amount differs from that shown in Table 10 because of a judg­ mental reallocation in Table 10. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 557 year, is presented in Table 3. Most of the Nearly all long-term borrowing by large shortfall of borrowing ($1.36 billion) re­ units was done in the private market. Only flected abandonments of $1.29 billion, that $0.27 billion was borrowed from other gov­ is, issues cancelled in their entirety during ernments (including the Federal Govern­ 1966. The sale of these issues could have ment) compared with $5.94 billion from been suspended indefinitely or delayed until private sources (see Table 4). Fewer units 1967. Another $0.1 billion of issues were re­ duced, that is, the government borrowed less TABLE 4 than originally planned. Only an insignifi­ LONG-TERM BORROWING BY STATE AND LOCAL GOVERNMENTS DURING 1966, BY TYPE OF cant volume of borrowing represented in­ LENDER AND BROAD EXPERIENCE creases in issue size from that originally (In millions of dollars) planned. Postponements, that is, issues tem­ porarily delayed but later sold in 1966, are Type of lender Effect of borrowing All not displayed in this table since they would difficulty types Government Private not affect annual totals. Postponements (A) (B) (C) amounted to almost $0.4 billion, as shown (1) None............................. 5,520 258 5,262 (2) Borrowing reduced in Table 5. Accelerations, that is, issues and/or postponed........ 687 13 674 (3) All borrowing.............. 6,207 271 5,936 whose time of sale was advanced, are like­ wise not shown in Table 3; they amounted Note.—Borrowing in col. B is exclusively intergovernmental; hence col. C may include some mixture of public and private loans to to about $0.1 billion as shown in Table 9. governments. Line (2) includes all borrowing postponed and later made up in For all purposes, borrowing planned by 1966, all borrowing reduced in amount, or both. Line (1) includes a minor amount of borrowing accelerated and/or increased in amount. large units for 1966 amounted to $7.6 bil­ lion, while borrowing realized was $6.2 bil­ that borrowed from other governments in­ lion or 82 per cent of the planned level. By dicated that they had had borrowing diffi­ contrast, borrowing for all educational pur­ culties than those units that borrowed from poses—-by cities and States as well as by private sources. This implies that intergov­ independent school and university authori­ ernmental loans were not ultimately resorted ties—was 90 per cent of the planned level.9 to as substitutes by units which encountered The largest shortfalls were in borrowing problems in borrowing from private sources for health and welfare and transporta­ in 1966. tion facilities; only 74 per cent of borrowing planned for these two purposes was actually TEMPORARY POSTPONEMENTS OF realized. This tends to confirm earlier find­ BORROWING MADE UP LATER IN 1966 ings that borrowing for educational pur­ poses is less sensitive to fluctuations in in­ Besides the $1.36 billion shortfall between terest rates than other types.10 actual and planned borrowing for 1966 as a whole, governmental units temporarily ” However, colleges and universities may have had postponed $369 million of borrowing which unique borrowing problems in 1966 that are obscured was subsequently sold during the year. As in Table 3 by high proportions of actual to planned borrowing achieved for elementary and secondary edu­ Tables 5 and 6 indicate, $338 million of cation facilities. A later study combining data from such borrowing was originally postponed both the small and large government surveys will investigate this possibility. during 1966; only $31 million of the post­ ’" Frank Morris, “Impacts of Monetary Policy on ponements terminated in 1966 had origi­ State and Local Governments: An Empirical Study,” nated in 1965. Journal of Finance, May 1960. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

558 FEDERAL RESERVE BULLETIN □ JULY 1968 In the questionnaire, respondents were swers indicated that over three-quarters of asked to indicate reasons for intrayear post­ all such postponements were primarily due ponements in 1966 and to rank these reasons either to interest rates being judged to be in relative importance at the time decisions too high by governmental officials or to in­ to postpone originally were made. Their an­ terest rates exceeding ceilings established TABLE 5 VOLUME OF BOND OFFERINGS POSTPONED AND SUBSEQUENTLY ISSUED BY STATE AND LOCAL GOVERNMENTS, IN 1965 AND 1966 Period when postponement began related to length of, and reason for, postponement (In millions of dollars) Period postponement began Total Length of or reason for postponement post­ 1966 poned 1965, 2d half Ql QU QIH QIV Length of postponement (weeks): 4 or less...................................................................................................... 66.0 23.9 9.9 20.9 11.4 5-8 63.5 11.0 52.5 9-16............................................................................................................ 82.3 6.0 13.0 48.1 15.2 17-24.......................................................................................................... 96.7 1.5 65.3 29.9 25 or more................................................................................................. 60.2 31.1 29.1 Total.................................................................................................. 368.8 31.1 71.6 88.2 151.4 26.6 Reason for postponement: Court proceedings.................................................................................... 37.1 31.1 6.0 Underwriting delays not due to interest rates 1. .................................... Referendum defeat......................................................................... 6.3 6.3 High interest rates 2............................................................................... 286.1 67.6 73.9 133.2 11.4 High construction costs 3.................................................... ............ 4.0 4.0 Revenue increases or expenditure decreases L .................................. Other reasons............................................................................................. 35.3 2.0 18.1 15.2 Total....................................................................................................... 368.8 31.1 71.6 88.2 151.3 26.6 1 Zero entries in all columns of this line. 3 Includes upward revisions of cost estimates because of changes in 2 Combines question 12(d), “Interest rates exceeded statutory, con­ specifications, that is, changes in the amount of real capital desired by stitutional, or referendum-imposed ceiling,” and 12(e), “Interest governmental units. rates were judged to be too high, even though answer 12(d) did not Note.—In this and other tables details may not add to totals apply.” See Table 6 for a breakdown of these components. because of rounding. TABLE 6 VOLUME OF BOND OFFERINGS POSTPONED AND SUBSEQUENTLY ISSUED IN 1966, BY PURPOSE OF OFFERING AND PRIMARY REASON (In millions of dollars) Purpose of borrowing Reason for postponement Administra­ Total Utilities Education Transpor­ Health and tive Other tation welfare facilities purposes Court proceedings......................................... 37.1 7.0 24.1 6.0 Underwriting delays not due to interest rates 1..................................................... Referendum defeat....................................... 6.3 6.3 Interest rates exceeded pre-set ceiling 2.. .. 38.9 6.3 11.4 3.2 8.7 9.4 Interest rates were too nigh 2....................... 247.1 35.2 170.5 6.0 12.5 12.9 9.9 High construction costs................................ 4.0 4.0 Revenue increases or expenditure decreases. Other reasons................................................ 35.3 0.8 2.0 10.6 1.5 20.4 Total.....................................3..6..8.....8......... 49.2 190.2 48,0 21.2 23.8 36.3 1 Zero entries in all columns of this line. other tables on reductions and postponements of bond offerings 2 These two reasons are combined under “High interest rates,” in within 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 559 TABLE 7 ried over to 1967.) After running at $72 LONG-TERM BORROWING POSTPONEMENTS SUB­ million in the first quarter, the amount of SEQUENTLY ENDED IN 1966, BY QUARTERS postponements initiated in the second quar­ (In millions of dollars) ter rose to $88 million as interest rates in­ Postponements creased. (See Table 8 for bond yields.) Then Period they soared to $151 million in the third Initiated 1 Ended quarter as yields moved upward rapidly. QI.................................................. 71.6 30.7 The fourth-quarter decline in postponements Qii................................................. 88.2 40.0 Qin............................................... 151.3 86.7 initiated means little by itself, because only QIV................................................ 26.6 211.4 those ending during the same quarter are 1 Docs not include postponements into 1967, because the ques­ counted. But the jump in postponements tionnaire asked only for dates when postponements of actual 1966 issues ended and the length of each postponement. Also ex­ ending in the fourth quarter shows the same cludes postponements initiated in 1965 and ending in 1966; these can be found in Table 5. responsiveness to the downturn in interest rates as postponements initiated showed previously by bond referenda or statutory during the first three quarters when interest or constitutional law. Only 23 per cent ($83 rates were rising. million) were due to reasons not directly connected to credit market phenomena such ACCELERATIONS AND INCREASES IN as referendum defeats and court cases chal­ BORROWING lenging the legality of bond offerings. Neither accelerations of borrowing nor in­ Intrayear postponements were strongly creases in planned borrowing were very associated with fluctuations in municipal sizable in 1966. Accelerations amounted to bond yields within 1966. Table 7 shows the amount of postponements initiated and sub­ TABLE 9 sequently ended in each quarter of 1966. ACCELERATIONS AND INCREASES OF LONG-TERM (Note that the column of postponements BORROWING DURING 1966 (In millions of dollars) initiated does not include bond offerings car- Purpose or reason Accelerations Increases TABLE 8 Total.................................................. 111.9 33,6 INTEREST RATES ON LONG-TERM STATE AND LOCAL GOVERNMENT BONDS IN 1966 Purpose; Utilities.............................................. 31.8 4.8 (In per cent) Education.......................................... 49.7 9.8 Transportation................................. 26.5 9.4 Health and welfare.......................... 1.4 Survey serie ( s 1 : ) N , e t i . nterest O A t d h m er in p is u t r r p at o i s v e e s f .. a .. c .. i . l . i . t . i . e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 2 . . 4 0 < 3. 8 9 cost paid by large State and (2) local governments Moody’s Aaa Primary reason: Period seasoned Expectations of— municipal Higher interest rates................. 97.8 22.3 General obli­ bond yield Higher construction costs........ 2.6 9.8 gation bonds Other bonds Projects needed ahead of schedule 11.5 Other............................................ QI.......................... 3.69 3.67 3.48 qii,.................. 3.85 3.92 3.53 Accelerations or increases 1 QIII........................ 4.28 4.48 3.87 Period due to expectations of rising QIV........................ 4.02 4.44 3.80 interest rates Year................ 3.96 4.25 3.67 QI.......... 37.7 Note.—Series (1) is weighted by size of bond offering. Q Q U II . I .. . . . .. . . . . 5 9 1 . . 1 0 Series (I) and (2) are not directly comparable, for the following QIV....... 6.3 reasons: series (I) consists of weighted averages of net interest cost of Year 104.1 general obligation, revenue, and other bond offerings, the ratings of which were not specified by survey respondents. They are also new issue yields, whereas the Moody’s Aaa yield is for five seasoned bonds, 1 Where there was a joint acceleration and increase, only the amount homogeneous in quality (bond rating) and type (general obligation). of the acceleration is counted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

560 FEDERAL RESERVE BULLETIN □ JULY 1968 $112 million, while increases amounted to TABLE 10 $34 million. As Table 9 shows, the great REDUCTIONS IN BOND OFFERINGS DURING 1966 bulk of advances in timing and amounts bor­ By reasons for reduction and timing of offering rowed was for interest-rate reasons. In con­ (In millions of dollars) trast to the borrowing abandonments de­ Total scribed below, accelerations of borrowing Reason for QII QIII QIV year were prompted by expectations that interest rates were going to rise. C U o n u d r e t r w pr r o it c in ee g d i d n e g la s y .. s .. .. n .. o .. t . .. d .. u .. e .. 0.9 ......... 0.9 to interest rates 1............. Most accelerations and increases moti­ Referendum defeat................. 3.2 .......... 3.2 ........ Interest rates exceeded pre-set vated by rising interest rates did take place ceiling...................... (2) (2) ..................... Interest rates were too high before the high in market yields in the third for other reasons than above................................ 101.5 10.0 62,4 0.2 28.9 quarter of 1966. These borrowings occurred High construction costs.......... 0.8 0.8 Revenue increases or expen­ during the first two quarters, and especially Ot d h i e tu r. r . e .. . d .. e .. c .. r . e .. a .. s . e .. s .. . 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . .... 8.8 ' ’6’5’ '3^6' ’ '2’3 Total............ 115.3 10.5 72.5 2.5 29.7 during the second quarter when the advance in interest rates slowed temporarily. In early 1 Zero entries in all columns of this line. 2 Less than $50,000. 1967, of course, rates fell below their first- 3 No reasons at all checked for this amount. half 1966 levels; so anticipations that bor­ rowing costs would be lower were accurate, bond offerings actually sold were reduced but in the short run only. Evidently, the de­ by $0.12 billion. Together, abandonments cline in interest rates during the fourth and reductions led to a total shortfall of quarter (Table 8) did not convince many $1.41 billion from planned borrowing units to accelerate their borrowings. levels, exclusive of the very small increases in borrowing plans discussed above. (See BORROWING ABANDONMENTS AND Tables 10 and 11.) High interest rates were REDUCTIONS the primary cause of $1.01 billion (78 per During 1966, 24 government units aban­ cent) of offerings abandonments and $0.10 doned the imposing sum of $1.29 billion of billion (89 per cent) of reductions in offer­ long-term borrowing. In addition, 1966 ings sold. Clearly, stringent credit markets TABLE 11 ABANDONMENTS OF BOND OFFERINGS Purpose of offering related to reason for abandonment1 (In millions of dollars) Purpose Primary reason All (b) (c) (d) (O for abandonment purposes Administra­ Utilities Educational Transpor­ Health and tive Other Facilities tation welfare facilities Referendum defeat...................................... 92.3 3.4 28.1 14.8 46.0 High construction costs 1............................. High interest rates........................................ 1,006.9 115.8 117.4 558.0 86.2 15.6 113.9 Revenue increases or expenditure decreases. 10.0 0.7 (2) 1.5 7.8 Availability of intergovernmental grants. .. 4.0 4.0 Other............................................................... 175.9 112.0 16.6 10.1 6.2 14.0 17.2 All reasons.............................................. 1,289.2 231.2 166.0 568.7 107.2 31.2 184.9 1 Abandonments includes offerings postponed into 1967 or later as well as those suspended indefinitely. a Zero entries in all columns of this line. :| Less than $50,000. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 561 in 1966 had more than a transitory impact total abandonments in 1966. Abandoned on the borrowing plans of State and large educational bond offerings were only 8 per local governments, and created a large cent of actual borrowing for that purpose carry-over of unsatisfied credit demands into during the year. Reductions were concen­ the following year. trated in borrowings for educational pur­ The pattern of reductions in borrowing poses but only accounted for 4 per cent of during 1966 does not suggest a close asso­ actual bond sales for that category, as is ciation with interest-rate fluctuations. Re­ shown in Table 12. ductions were largest during the second Since high interest rates were dominant in quarter and smallest in the third when in­ causing borrowing abandonments for almost terest rates reached their peak (Table (10). every purpose category, the probable dura­ Virtually no borrowing was reduced because tion of these interruptions to borrowing interest rates exceeded a ceiling set by a plans is of special interest. However, the referendum or statutory or constitutional questionnaire did not differentiate between provisions. Such ceilings, as might be ex­ abandonments which marked an indefinite pected, usually led to postponements or suspension of plans and those which might abandonments of borrowing plans, rather prove to be postponements carried over to than fractional reductions in the amount of 1967. Nor did it ask in what month of 1966 issues actually offered. the carried-over postponements were initi­ Abandonments amounted to 16 per cent ated. Thus, it is possible that a substantial of the actual total long-term borrowing part of the $1.29 billion in abandonments shown in Table 3. Of all functional cate­ consisted of short postponements initiated gories, transportation was affected the most during the last few months of 1966 and sub­ by borrowing abandonments: the latter sequently sold in early 1967. amounted to slightly over 34 per cent of However, supplementary information actual borrowing for the same purpose. It drawn from the financial press makes it pos­ should be noted that the one very large sible to estimate the 1966 quarterly distribu­ abandonment of borrowing by a toll road tion of all postponements and abandonments authority accounted for about 23 per cent of by large governments, whether or not the postponements were made up later in 1966.11 TABLE 12 The “gross” column of Table 13 has esti­ REDUCTIONS IN BOND OFFERINGS IN 1966 mates of all postponements and abandon­ By purpose and per cent of offering ments initiated in each quarter of 1966, As percentage while the “net” column estimates the bal- Purpose of borrowing Amount 1 of bond (in millions of dollars) offerings 11 The sum of 1966 intrayear postponements and Utilities................................. 11.0 Education............................. 72.9 3.7 abandonments is distributed to quarters by a series Transportation...................... 28.6 1.8 based on reports of postponements or failures to sell Health and welfare............... 1.4 0.5 Administrative facilities..... /2> (’) issues carried in the Daily Bond Buyer and Investment Other. ................................. 1.4 0.2 Dealers’ Digest. The level of this series is different Total................................. 4115,3 1.9 from our large-unit postponement and abandonment series because it counts postponements by all govern­ i Reductions in multipurpose issues were allocated, arbitrarily, among purposes by amounts finally borrowed. ments and only those broken off just prior to the for­ 2 Less than $50 thousand. mal bidding or at the time of the anticipated sale. But 3 Less than 0,05 per cent. there appears to be no reason why it is inappropriate 4 This is $6.0 million greater than the corresponding total in Table for use as an index for allocating large-unit postpone­ 10, because one government failed to check a reason for a borrowing reduction of this amount. ments and abandonments to 1966 quarters. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

562 FEDERAL RESERVE BULLETIN □ JULY 1968 TABLE 13 Responses to a question on specific rea­ BORROWING ABANDONMENTS AND sons why interest rates were thought to be POSTPONEMENTS “too high” indicate that the bulk of offer­ Estimates of distribution by quarters when they ings abandoned in 1966 were actually post­ were initiated ' ponements which extended beyond that year (In millions of dollars) in the hope that more favorable borrowing Postponements and abandonments: conditions would develop. As shown by 1966 Gross 1 Table 14, expectations of future interest­ rate declines accounted for more than 80 QI................ M62 2431 QH.............. 170 130 per cent of all abandonments for interest­ QIII............ 692 605 QIV............. 303 92 rate reasons. Those factors which may indi­ Year total 1,626 1,258 cate permanent abandonments of financing 1 Net postponements and abandonments equal all initiated during (debt service costs became too great or, the quarter (gross postponements'* less postponements made up later in 1966, including $31 million from 1965. perhaps, where statutory or constitutional - Includes one bond offering of $307 million. or referenda ceilings on interest rates pre­ ance of abandonments or those postpone­ vented borrowing) accounted for only 16 ments which were carried over into 1967.12 per cent of interest-rate-induced abandon­ According to these estimates, the great ma­ ments. Many governments which antici­ jority of the $1,258 million of net borrow­ pated a later decline in interest rates prob­ ing abandonments during 1966 originated ably reentered the market in 1967 or even in the first three quarters of 1966 when in­ 1968.13 terest rates were climbing. 13 A study on 1967 experiences of units that aban­ doned bond offerings in 1966 is currently in progress, 13 These “net” column figures equal postponements and results will be presented in a forthcoming analysis initiated (first column) less the postponements made of both large and small government borrowing and up in 1966, including $31 million from 1965. capital spending in 1966 and 1967. TABLE 14 ABANDONMENT OF BORROWING AND CURTAILMENT OF CAPITAL SPENDING BECAUSE OF HIGH INTEREST RATES Specific types of interest rate difficulty, related to purpose of intended offering 1 (In millions of dollars) Borrowing abandoned Purpose All curtail­ Type of ments of difficulty All 1966 capital purposes Health Adminis­ spending 2 Utilities Education Transpor­ and trative Other tation welfare facilities purposes Rates above— Statutory or constitutional limits... 29.8 15.3 14.5 5.5 Referenda-imposed ceilings.............. 18.0 10.5 7.5 21.6 Rates were expected to decline later. 867.6 113.3 77.7 545.7 22.3 15.5 93.1 55.9 High rates made debt servicing costs too great..................................... 119.2 2.5 32.1 12.7 58.0 0.1 13.8 12.2 Other.................................................. 6.0 4.2 0.7 1.1 All types..................................... 1,040.6 120.0 125.1 558.4 91.4 15.6 130.1 95.2 1 Curtailments are cross-classified by their major component (can­ Note.—Total borrowing abandoned because of high interest rates cellations) in Table 17. as shown in this table exceeds the total amount due primarily to in­ “Contract award cancellations plus $13.1 million in reduc­ terest rates as shown in other tables because units giving high interest tions in spending on equipment or on projects for which con­ rates as a reason (primary or lesser) were asked to specify the nature tracts had already been awarded. of the difficulty, and two units accounting for $34 million of abandon­ ments indicated more than one type of difficulty. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 563 TABLE 15 PRIMARY AND SECONDARY REASONS FOR ABANDONMENT AND POSTPONEMENT INTO 1967 OF BORROWING (Tn millions of dollars) Secondary reason Revenue Availability Primary reason Total Referen­ High High increases of inter­ dum construc­ interest or govern­ Other None defeat 1 tion rates expenditure mental costs decreases grants Referendum defeat............................... 92.4 .................................. 0.8 .................................. 2.3 89.3 High construction costs 1................... High interest rates.......... 1,006.9 ............ 5.0 ............ 172.9 13.5 390.7 424.9 Revenue increases or expenditure de­ creases............................................ 10.0 ............................................................................................................................ 10.0 Availability of intergovernmental grants............................. 4.0 ........................................................................................................................... 4.0 Other...................................................... 175.9 .................................. 32.9 ......................................................... (43.1 Total..............................1..,.2...8..9....2...... ............ 5.0 33.7 172.9 13.5 392.9 671.2 1 All entries are zero in this column and line. Secondary reasons were given for almost spending on a single project. It was believed half of all borrowing abandonments (Table that finance officer respondents would there­ 15). Most frequently checked was “other fore have a reasonably complete knowledge reasons,” and the written comments made of when cancellations occurred and the ap­ by respondents show that these were mostly proximate dollar magnitude involved.14 Re­ of an administrative and planning nature. spondents were also questioned about the But, as discussed below, the comments were purpose of such awards. Finally, they were also often strongly suggestive of the fact that asked to report on, and quantify, any other the units had originally planned to borrow impacts of borrowing disappointments on considerably ahead of actual cash needs. 1966 capital spending and on 1967 contract awards. INDUCED CHANGES IN CAPITAL OUTLAYS Contract awards. The reported effects of changes in borrowing plans on contract A large proportion of respondents filling out awards were small. Twenty-two governments the questionnaire were finance officers or canceled $121 million of awards in 1966 treasurers. These men are intimately ac­ because of borrowing difficulties—less than quainted with borrowing postponements a tenth of the $1.41 billion total shortfall and abandonments and their proximate from planned borrowing. Nearly all of the causes. But they may be less well acquainted award cancellations were associated with with the ultimate consequences of such ac­ abandonments rather than short-term post­ tions in terms of operating as well as capital outlays. ponements or reductions of bond offerings, Thus, respondents were asked primarily as is shown in Table 16. about contract award cancellations resulting 14 It was also expected that borrowing would have from changes in borrowing plans, rather had a much greater impact on new contract awards than on spending on projects for which contracts had than about induced changes in total capital already been awarded. Projects under construction are spending or spending plans during 1966. amost never abandoned due to a borrowing setback, because the outlays have already been legally com­ Such cancellations are “news” because each mitted and because funds often are required to be fully usually involves a large amount of projected in hand before construction begins. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

564 FEDERAL RESERVE BULLETIN □ JULY 1968 TABLE 16 Lagged changes in contract awards. Eight­ CONTRACT AWARD CANCELLATIONS BECAUSE OF een governments that abandoned $83 mil­ BORROWING DIFFICULTY lion of long-term borrowing in 1966 report­ (Tn millions of dollars) ed that such abandonments were the reason Contract they had postponed or canceled contract award Type of borrowing cancellations awards during the first 7 months of 1967. Reduction, or postponement until later in 1966 10,0 The difference between abandoned borrow­ Abandonment, or postponement into 1967........ 104.0 Combination of both1......................................... 6.7 ing and 1966 award cancellations by these Total.................................................................. 120.7 same units can be used as an estimate of 1 Units both postponing until later in 1966 and abandoning award cancellations not occurring until offerings. 1967.15 The estimate of these lagged can­ Contract award cancellations occurred cellations totaled $49 million. If we add this throughout the United States, with 10 out to all 1966 award cancellations, the total for of 12 Federal Reserve districts reporting at both 1966 and 1967 is $170 million. Some least one. The largest impact relative to award cancellations undoubtedly occurred abandonment of borrowing was in the San after July 1967, as a result of 1966 bor­ Francisco District, where nine units reported rowing difficulties, but these were probably $23 million. While no one purpose predomi­ less than reported cancellations during the nated among award cancellations (Table first 7 months of 1967. 17), high interest rates were an important Other expenditure effects. Units reported factor in such cancellations; $82 million of that induced reductions in capital outlays $ 111 million of the award cancellations had other than those implied by award cancella­ resulted from borrowing abandonments for tions, such as purchases of land and equip­ which high interest rates were the leading their final effect on the annual total of such awards is cause.15 problematic. Contract award cancellations by units ex­ periencing both intrayear postponements or reductions 15 Unpublished tabulations show approximately $5 and abandonments are attributed to the latter change million in contract awards were curtailed by units ex­ in borrowing plans in Table 17. periencing only intrayear postponements or reductions 10 None of the 22 governments that canceled con­ in their borrowing because of high interest rates. But tract awards reported cancellations in excess of bor­ since such curtailments evidently were short-lived. rowing abandoned or reduced. TABLE 17 VOLUME OF CONTRACT AWARDS CANCELED FOLLOWING BORROWING ABANDONMENTS Purpose of award related to primary reason for abandoning borrowing (In millions of dollars) Purpose of intended award Reason for abandonment Total Utilities Education Transpor­ Health and Administra­ tation welfare tive Other facilities Referendum defeat............................................... 12.4 3.3 9.1 High construction costs.............................. High interest rates......................................... 82.1 9.7 14.9 364 16.8 32 7.2 Revenue increases or expenditure decreases Availability of grants-in-aid....................... Other............................................................... 16.3 3.6 7.9 3.6 2.3 Total.....................................1..1..0....7............ 16.0 31,9 36.4 16.8 6.2 9.5 Note.—These cancellations do not include those by units that tion not included is less than 10 per cent of the total shown reduced long-term borrowing or made up postponements within here. See Table 16. 1966 unless they also abandoned borrowings. However, this por­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 565 ment, were negligible in 1966 ($14 mil­ not asked about in the survey—such as lion).17 Almost all (about $13 million) of award cancellations after July 1967 and such reductions were associated with bor­ lagged reductions in outlays on equipment, rowinn abandoned bv units because of in­ land, and existing structures during 1967—terest rate reasons. If these are added to the the total impact of 1966 borrowing changes award cancellations occurring in 1966, total by large units on combined 1966-67 capital capital spending and contract award cur­ and current outlays was probably $250 tailments associated with long-term borrow­ million or more. Since spending follows ing abandoned because of the high cost of contract awards by moderately long lags in borrowing come to $95 million for that the government sector, the bulk of the im­ year. (This is broken down by type of in­ pact on spending undoubtedly came after terest rate difficulty in Table 14.) the peak of monetary restraint in the late Not all expenditure effects were limited summer and early fall of 1966. It should to the capital accounts of governments. also be noted that even reductions of $300 Some $18 million of borrowing was aban­ million, spread over both 1966 and 1967, doned by units which indicated that re­ would be small relative to the total capital ductions in current expenditures enabled outlays of large governments.18 them to proceed with capital outlays; and an additional $18 million of abandoned bor­ rowing was compensated for by stretching ’“There are no statistics on the capital outlays or contract awards made by the large-government group out cash disbursements (see Table 18). Al­ in this survey. But they borrowed $6.2 billion during together, it appears that current cash out­ 1966, nearly all of which was for capital outlays. If we add to this a reasonable estimate of outlays fi­ lays in 1966 may have been reduced by as nanced from other sources, such as tax revenues and much as $50 million, in addition to the $121 government grants, we have an implied large-govern­ ment capital spending total of at least $10.0 billion, million reduction on contract awards. and probably more, in 1966. This, in turn, would im­ After making allowances for those items ply that $250 to $300 million of outlay reductions due to borrowing difficulties over the 2-year period repre­ ” This figure is from an unpublished tabulation of sents a reduction equivalent to no more than 1.3 or survey results. 1.5 per cent per year of capital outlays. TABLE 18 BORROWING ABANDONED BY UNITS GOING AHEAD WITH CAPITAL OUTLAYS Purpose of intended borrowing related to means of financing outlays (In millions of dollars) Purpose of borrowing Primary means of financing outlays Total Utilities Education Transpor­ Health and Administra­ Other tation welfare tion functions Short-term borrowing for: Interest—expectational reasons................ $225.0 $16.5 $81.0 $39.9 $65.5 $6.5 $15.5 Other reasons............................................. 13.7 1.7 1.5 2.8 5.0 1.1 1.7 Stretch-out of cash disbursements............... 17.5 6.1 8.0 1.4 1.4 ... 0.6 Current expenditures reduced...................... 18.0 .... 13.0 5.0 Increase in revenues...................................... 10.0 .... 0.7 (1) 1.5 7.8 Liquid assets drawn upon............................ 245.7 63.6 23.4 151.2 6.4 0,1 1.0 Intergovernmental grants............................. Other means 2................................................ 582.’1 122.'2 1’2'9 320.’9 17.’8 6^8 10L5 Total........................................................ 1,112.0 210.1 126.9 529.9 96.1 16.0 133.1 1 Less than $50,000. because borrowing was planned well in advance of actual cash fl Predominantly funds not needed for 1966 capital spending needs. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

566 FEDERAL RESERVE BULLETIN □ JULY 1968 HOW CAPITAL OUTLAYS WERE MAINTAINED TABLE 19 The great majority of governments experi­ NUMBER OF GOVERNMENTS GOING AHEAD WITH CAPITAL OUTLAYS DESPITE SOME TYPE OF encing a reduction or an abandonment of BORROWING DIFFICULTY borrowing (93 out of 115 units) went ahead Primary means of financing outlays related to selected secondary means with capital outlays in 1966 despite financ­ ing difficulties. Among the specific means Secondary means of financing for proceeding with capital spending after changes in borrowing plans, two stand out: Primary means Total Stretch­ Other, i of financing num­ Liquid Current out of and 2nd the substitution of short- for long-term bor­ ber assets expend­ cash means drawn itures disburse­ not upon reduced ments given rowing, and drawing upon liquid assets. Those respondents that reduced or aban­ Short-term borrowing for: doned long-term borrowing in 1966, but Interest-expectational reasons.... 26 2 I .... 23 maintained their capital outlays, were asked Other reasons......... 2 I ...................... I Stretch-out of cash dis­ to check various alternative means by which bursements .......... 5 I 2 .... 2 Current expenditures these outlays were financed. The amount of reduced.........3..... .................... t 2 Increase in revenues.., 1 I ...................... Liquid assets drawn capital spending thus maintained by these upon.................... 23 ... I 2 20 Intergovernmental alternative means was assumed to be equal grants.................. Other........................... 33 i " ‘ ' i' 31 to the amount of long-term borrowing aban­ Total....................... 93 6 4 4 79 donments or reductions by the units in­ i Only seven units offered a secondary reason other than those giv­ volved. By this approximation used in en in the stub; the remaining 72 units gave only a primary reason. Note.—Units included in the tabulation are those that postponed Table 18, $239 million of spending was a bond offering within 1966 or reduced or abandoned an offering. maintained by short-term borrowing 19 and (Nearly all abandoned offerings.) about the same amount, $246 million, was accounted for more than half of the total maintained by drawing upon liquid assets. capital outlays maintained despite shortfalls These amounts were far in excess of any in borrowing plans. The written replies of flows maintained by other specific means these units point to a major buffer between such as stretch-outs of cash disbursements the borrowing and capital outlays of large or reductions in current expenditures. The governments: the general prevalence of long lack of adjustments to current receipts and leads of borrowing prior to the letting of expenditures confirms that such flows are contracts. very resistant to short-run adjustments.20 Repeatedly, respondents volunteered that An interesting finding of the survey is the borrowing postponements or abandonments large volume of capital spending maintained could not have affected 1966 contract despite borrowing setbacks that was not as­ awards because the funds would be needed sociated by the units involved with any of only in the future. Evidently, the bulk of the the specific reasons given in Tables 18 and $582 million of the borrowing abandoned 19. The estimated spending of such units where “other means of financing outlays” were indicated resulted only in units having 10 In addition, several governments commented that they had shortened the maturities of long-term bor­ less liquid assets prior to spending dates than rowing (although still borrowing on maturities of more they had originally intended.21 than 1 year). “These results were not due to the weight of any 21 Although one issue accounts for about half of the exceptionally large bond offerings abandoned, as is dollar total, three-fourths of the units indicating other shown by their general agreement with underlying means of financing after borrowing abandonments data on governmental units maintaining capital outlays evidently had planned to borrow well in advance of (Table 19). ' contract awards and actual cash needs. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 567 Thus, changes in the volume of liquid verse of this also holds: the fact that a sec­ assets held are the principal reason why tor’s borrowing is not initially affected by large governments that changed their bor­ tightening credit conditions may well denote rowing plans were able to maintain capital a lack of financial flexibility among its mem­ spending so well. Target liquid asset hold­ ber units that would be revealed only by ings were reduced at the individual govern­ prolonged periods of monetary restraint. ment level by either drawing down liquid Secondly, the degree of liquidity among asset balances or failing to create them by potential borrowers has a bearing on the early borrowing. Units doing the former ac­ length and character of lags in responses to counted for $246 million of spending, as monetary policy. The year 1966 followed at measured by borrowing abandonments least 5, and probably 6, years when credit (Table 18); while units that refrained from was abundant by any definition; State and adding to liquid assets as originally planned local governments had had opportunities to are estimated to account for an even larger build up large cushions of liquid assets. In amount. addition, Federal grants-in-aid to State and Several implications of these findings de­ local governments rose more in 1966 than serve to be included in future research on before or subsequently. Hence, their spend­ linkages between monetary policy and finan­ ing reactions to tight money during 1966 cial and real flows in the different sectors cannot be extrapolated to 1967 and 1968 of the economy. One is that causation runs when credit tightened again after a brief period of monetary ease. The lagged effects not only from changes in borrowing plans of 1966 monetary restraint on capital out­ to changes in liquidity positions, but in the lays inferred from respondent answers dis­ reverse direction as well. Governments and cussed in the preceding section could have other economic units that are very liquid been reinforced by new 1967 increments of are probably more apt to postpone their bor­ borrowing postponements and abandon­ rowing plans during a tight-money period, ments. Moreover, the combined effects of in order to speculate on a later decline in successive periods of monetary restraint interest rates, than are those that are not so may be considerably greater than the simple liquid. sum of effects during and after short inter­ Most borrowing abandonments because vals of restraint separated by periods of of high interest rates were due to speculative monetary ease. behavior: governments changed their bor­ The number of units resorting to short­ rowing plans primarily because they ex­ term borrowing from banks and other pected interest rates to decline later. More­ sources, after long-term borrowing dis­ over, they did so without serious disruptions appointments, is also noteworthy. Tradi­ in their spending plans. This ability to with­ tionally, these governments have had pre­ draw from credit markets denotes financial ferred access to commercial bank credit be­ strength and is not a sign of weakness as cause of the high effective yields to banks might be inferred from some studies of the or obligations paying tax-exempt interest impacts of monetary policy.22 And the conand because of the size of deposits main­ 32 See Chapter 9 of Staff Report on Employment, tained by large governments. To the extent Growth and Price Levels, Joint Economic Committee that banks accommodated governments by of Congress (86th Congress, 1st Session), Washington, D.C., U.S. Government Printing Office, 1959. turning down other borrowers, these govern- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

568 FEDERAL RESERVE BULLETIN □ JULY 1968 ments transmitted the effects of monetary not be generalized as applying to all State restraint to other sectors of the economy. and local governments. Preliminary tabula­ In conclusion, monetary policy had a siz­ tions of the survey of smaller governments able effect on the borrowing of large State suggest that while these governments were and local governments but a relatively less apt to change their borrowing plans in small impact on their capital spending 1966 than large units were, they were more during 1966 because of the large liquid asset apt to cancel contract awards if they did cushions of many governments and the reduce or abandon borrowing. ability of others to obtain interim short-term The large units reported on here ac­ financing. But continued tightness in the counted for only a little over half of all credit markets may have a cumulative im­ long-term borrowing by State and local pact on the financial flexibility of these units governments in 1966, so that differences in and thus their ability to insulate capital out­ behavior between small and large govern­ lays from changes in borrowing plans. ments could have a considerable effect on Moreover, the results of this study should the results for the entire sector. APPENDIX A: Selected Characteristics of State and Local Borrowing Several characteristics of State and local govern­ regions but even within individual States where ment finance are of importance to their borrowing different statutory and constitutional provisions behavior. govern the borrowing of different types of units. Traditional ties between borrowing and capital For example, although the power to borrow has outlays. Almost all long-term debt issued by State generally been extended to governmental units by and local governments is undertaken to finance State constitutions and charters, it has been loaded physical investment. Because of the longevity and with a host of prescriptions and prohibitions that technically lumpy character of public facilities, frequently complicate the borrowing process.1 capital outlays make periodically large demands Such institutional complexities coupled with a dif­ on community resources. Large, multipurpose units fusion of governmental functions among over may have a relatively stable, smooth pattern of 80,000 units may serve to make the credit demands capital project demands and might be able to gear of some governments relatively insensitive to credit current revenues accordingly. But small and single­ market conditions. However, the same diversity purpose units (where investment will be of an in­ also insures that other governments will have suf­ frequent “one shot” nature) will find often that ficient flexibility to wait out an unfavorable bond borrowing is the only feasible means of financing market if they choose to do so. their facilities. Organization of the bond market. The municipal The above reasons for debt financing of long- bond market exhibits a high degree of perfection lived assets are often reinforced by legislative and 1 These vary greatly among the States, but the following constitutional provisions which have singled out classes of constraints have been widely used: (1) Debt authorization requirements which stipulate that borrowing capital expenditures for special borrowing privi­ proposals be approved by popular referendum and, in leges. Generally, long-term borrowing may be some cases, by a constitutional amendment. (2) Debt undertaken only for purposes of such improve­ limits which restrict a unit’s outstanding indebtedness, often to a given ratio of the assessed property value and ments, and is generally prohibited for purposes of which sometimes (as in the case of a few states) flatly meeting current expenditures. prohibit the use of the government’s full-faith-and-credit. Diversity. The laws and basic policies governing (3) Interest rate ceilings, which limit the rates at which a unit can borrow, imposed by State constitutions or statutes State and local government borrowing are extra­ or, in the shorter run, established by the referendum ordinarily complex. These vary not only among approving a particular borrowing. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 569 in the sense that money can always be borrowed local government revenue receipts. Another part at a price; and that the price, given a supply of can be traced to differences between corporate and funds, differs primarily on the credibility of the governmental scales of transactions. But after rea­ borrower’s promise to pay. In other words, most sonable allowances are made for differences in borrowers may enter a well-informed, competitive cash needs, the residual difference in liquidity be­ market where such factors as the borrower’s loca­ tween the two sectors is still large. One reason is tion and the size of the issue have relatively little that some governments may not be as efficient as bearing on the costs of borrowing. is possible in economizing on their cash holdings However, the exemption from Federal income cither through apathy or restrictive legal require­ taxes of interest income from State and local se­ ments.1 Another factor—and an important one—is curities serves to constrict the primary sources of that governments almost always earn more from funds in this market to a somewhat narrower base the short-dated liquid securities they hold than they than that found for taxable securities. Tax-exempt pay on a comparable amount of long-term debt bonds are most attractive to individuals and cor­ that they owe. This is because their debt pays tax­ porations paying high marginal tax rates. Commer­ exempt interest to lenders, whereas most of their cial banks in particular have been heavy purchasers holdings of short-term securities and time deposits of State and local obligations. But credit tightness pay interest that is taxable to private (but not gov­ in the spring and summer of 1966—as in other ernmental) holders. This profitability of liquid such periods—caused commercial banks to reduce asset holdings financed by debt also induces many their participation in the market as they responded State and local governments to borrow a long time to growing demands for business loans and to re­ in advance of their needs for construction and serve shortages; many banks were even forced to other purposes.5 become large net sellers. As a result, the supply of Inflexibility of revenues and current outlays. Be­ funds for State and local bonds diminished in 1966. cause of institutional obstacles to rapid changes in Relative liquidity of State and local borrowers. tax rates, State and local revenues respond slowly As a group, State and local governments hold sig­ to changes in the availability or cost of borrowed nificantly more liquid assets per unit of transaction funds. Urgent social needs for many or most public than do private business corporations. In the outlays create a similar lack of flexibility on the middle of 1966, for example, they held about $30 expenditure side of governmental accounts. Also billion of deposits and short-term marketable se­ contributing to lack of responsiveness of budgeted curities (other than in insurance trust holdings).2 outlays to restrictive credit conditions are: the need These liquid assets were sufficient to pay for 5 for long advance planning in rapidly growing areas months of outlays by State and local governments, that account for so much governmental borrowing, whereas corporate holdings of liquid assets could the very high proportion of salaried employees to not have financed more than 6 weeks of outlays.'1 all employees in these units, and the large and Part of this difference in liquidity, of course, is growing share of both capital and current outlays due to the greater lumpiness of some State and that are financed in part by intergovernmental (and especially Federal) grants-in-aid of a matching 2 This is a rough estimate based on data front U.S. type. Bureau of the Census, Government Finances in 1965-66. 1 State and local outlays on goods and services are from Table 14, Flow of Funds Accounts, 1945-67, February ‘ See Advisory Committee on Intergovernmental Rela­ 1968 (Board of Governors of the Federal Reserve Sys­ tions, Investment of Idle Cash Balances by State and tem), for the year 1966. Corporate expenditures are ap­ Local Governments (Washington, D.C., Jan. 1961). proximated by 1966 corporate sales (Part VI of national 5 Some governmental units became overenthusiastic on income and product account supplement in July 1967 the arbitrage possibilities of selling tax-exempt obligations Survey of Current Business). Corporate liquid assets for the purposes of reinvesting the proceeds in taxable (cash, time deposits, and short-term marketable securi­ securities carrying much higher yields. Last year the U.S. ties) are from line 15, panel D, Table 4, Flow of Funds Treasury ruled that municipal bonds sold primarily for Accounts, 1945-1967. this purpose would not be considered tax-exempt. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

570 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX B: Technical Description of the Survey The Federal Reserve System’s survey of the bor­ Throughout the questionnaire, questions were rowing experience of large State and local govern­ framed so that actual borrowings, deviations from ments in 1966 was conducted by the 12 Federal planned levels of borrowing (postponements, aban­ Reserve Banks between the months of August and donments, etc.), and resulting impacts on contract October 1967. A uniform survey questionnaire awards and capital spending could be quantified, was mailed to all units falling within the sample categorized by purpose, and, if changes occurred, frame given in Table 1 of the text. The question­ the reasons for them could be determined.1 naire is reproduced in Appendix C. Incomplete and In those questions in which respondents were late responses were followed up both by mail and asked to allocate by purpose, six categories were by telephone. The great majority of responses suggested along with an “other” category which were on time and of high quality. Many units took the respondent could fill in if none of the suggested the effort to supply additional comments which ones seemed appropriate to him. Likewise, in the were often valuable in gaining insight into their questions relating to reasons why actions were experience and the behavior of State and local taken, respondents were asked to rank in order of units in general. importance various suggested reasons. Here too, Questionnaire structure. In order to encompass an “other” category was supplied so that respond­ the many varieties of experience that large govern­ ent could supply his own reasons if none of those mental units might have had, a relatively long and suggested seemed appropriate. The great majority detailed questionnaire had to be used. To reduce of respondents found that one of the suggested its complexity for the individual respondent and to reasons adequately described his unit’s experience. avoid having him read through questions that were Survey frame. All State and local units above not relevant to his unit’s experience, a branching the lower size limits given in Table 1 were included type of questionnaire form was used. Depending in the survey. These limits were chosen for several on their answers to the first three questions, re­ reasons. First, it was decided to use the Bureau of spondents were classified into one of four groups, the Census sample frame for both the large and each group having its own branch of questions. small governmental survey. Since Census uses these These were for units which had: parameters as the bottom cut-off for their annual (1) no intention of borrowing; canvass of large governmental units, adoption of (2) intended to borrow but abandoned all plans these size limits permitted use of an up-to-date, of so doing; ready-made listing of a 100 per cent sample of (3) intended to borrow and actually did so but large units requiring no additional selection. not in the full amount or at the time they had Second, these size limits seemed as reasonable originally planned; as other possible alternatives. Since all sizes of (4) intended to borrow and did so without any governmental units were to be surveyed, units not alterations in their plans. included in the 100 per cent large-unit survey have Respondents in group (1)—having had no in­ a known probability of being included in the small­ tention of borrowing—simply returned the ques­ unit survey.2 tionnaire after answering the first three questions. The Bureau of the Census 100 per cent sample Respondents in groups (3) and (4)—having realized all or part of their borrowing plans—were asked a 1 In the interest of economizing on the size and com­ battery of questions about the borrowings they plexity of the form, certain approximations had to be actually accomplished. Respondents in group (2)— used in the case of multiple-purpose issues in allocating the dollar volume of some changes in plans among pur­ having totally abandoned their borrowing plans— poses. In these cases (that is, reductions and increases) were sent to the latter part of the questionnaire the amounts involved were allocated among purposes in dealing with shortfalls in borrowing plans and their ratio to their share of the ultimate amount borrowed. 2 The Census sample is stratified so as to minimize the impacts on capital outlays. Respondents in group variance of combined State and local revenues and ex­ (3), since they had experienced some disruption in penditures, nationally and by States. For this reason, units of slightly smaller size than our lower limits for the their planned borrowing, also answered the final large-unit survey have a very high probability of selection part of the questionnaire. for the small-unit survey. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 571 was edited to remove FHA housing authorities and Bank of Boston and included staff members of the irrigation districts known to borrow exclusively Cleveland, Philadelphia, and Chicago Federal Re­ from the Federal Government or with Federal serve Banks and the Federal Reserve Board. The guarantees on their obligations. Units with no bor­ survey was conducted in each of the Federal Re­ rowing powers were also excluded from the survey serve districts by professional economists on the frame. A few large units were added to the group staffs of the respective Federal Reserve Banks. by the Federal Reserve Banks conducting the sur­ The great majority of State and local officials vey, following the guidelines relating to the lower were most cooperative and willing to fill out a long size limits given in Table 1 of the text. The final questionnaire form which often required much esti­ frame consisted of 1,053 governmental units. mating of dollar magnitudes and reflection on rea­ Survey administration. The survey was planned sons for their actions. The Federal Reserve Board by a subcommittee of the System Research Ad­ extends its thanks to these many respondents who visory Committee. This subcommittee was chaired helped make possible a final response rate of 94 by Mr. Robert Eisenmenger of the Federal Reserve per cent. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

572 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX C: Questionnaire Form FR 176 Form Approved: Budget Bureau No 55567002 FEDERAL RESERVE SURVEY OF STATE AND LOCAL GOVERNMENT FINANCING AND CAPITAL OUTLAYS IN CALENDAR 1966 The purpose of this survey is to determine the extent to which States and targe local government units changed either their long-term borrowing or their plans for such borrowing during calendar 1966. To the extent that such changes occurred, the survey also attempts to determine whether construction and other capital spending were affected thereby. GENERAL INSTRUCTIONS Organization of Questionnaire: Because the financial needs and experience of State and local governments differed during calendar 1966, the questionnaire is organized to direct you to the questions appropriate to your awn experience and decisions. Your answers to Part I will determine which other parts (if any) you should complete. Types of Questions Asked: Most questions require Yes or No answers, dollar estimates, or the checking of relevant answers in a multiple-choice listing. When you are asked to estimate dollar amounts, please write such amounts to the nearest dollar. If you prefer to estimate some amounts in thousands of dollars, please do so; but place three zeroes at the end of your estimate in order to help us avoid errors in tabulating the answers. The multiple-choice questions ask you to rank the suggested reasons for your 1966 experiences by their relative importance to you at that time. Each such question also has a space at the end where you can describe briefly, and also rank by relative importance, other reasons than those we have suggested. Please rank as many reasons (including those which you add in the space at the end) as had some impact on your calendar 1966 experiences. Time Period: Unless a question states otherwise, the time period covered by this questionnaire is calendar 1966. DEFINITIONS Long-term Bond issues, ar other borrowing, with an original maturity of one year or more. Offering date For bonds sold through competitive bidding, the offering date is the day when the lowest bid is accepted. For negotiated issues and other long-term loans, the offering date is the day when the underwriter (or the lender, when no reoffering is involved) signs a final agreement on loan terms with the borrower. Settlement date The day when securities were delivered and your unit received the proceeds of the issue. General obligation Bonds issued by a unit which has taxing powers and which Bonds pledges its full faith and credit for the payment of interest and principal on the issue. Please include in this category bonds of units whose taxing powers are limited by a max­ imum tax rate (or rates), as long as all revenues raised up to this rate are pledged to the servicing of the bond issue. Capital spending All outlays for construction and for the purchase of land, existing structures, and equipment (including replacements). Outlays for rentals and normal repairs and maintenance should NOT be included. But spending for any major reno­ vations should. Purposes of The fallowing elaboration of terms used in question 6, 19, financing and 24 may help respondents to answer these questions. (Continued) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 573 DEFINITIONS Purposes of Water, sewer, irrigation; gas, and electric facilities. finoncing In addition to facilities in the title, include in this : a teg o ry ( Continued) projects with recreational benefits as long as the utility purpose of the project is primary. Educational facilities. In addition to classroom buildings, libraries, and laboratories, include other service or research facilities such as dormitories, eating halls, and college administrative buildings. Roads, bridges, and other transportation facilities. Include mass transit, parking facilitieT, airports, harbor installations, tunnels, and waterways. Health, welfare, and cultural facilities. These include hospitals, health research facilities, those caring for children and the aged, museums, libraries (except those directly associated with educational institutions), concert halls, theaters, art centers, auditoriums, and types of social welfare facilities not specifically listed. DO NOT include public housing financed by FHA local agencies; but DO include public housing financed by other public bodies which are also an integral part of your governmental unit. DO NOT include sports arenas and exhibition halls, which you should identify in the space labeled “Other facilities**. Administrative facilities. Besides office buildings, these include such facilities as courts, jails, juvenile correction centers, police and firefighting facilities, and vehicles. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

574 FEDERAL RESERVE BULLETIN □ JULY 1968 -3- QUESTIONNAIRE ID No: Please fill in the following information: (a) Nome of governmental unit. (b) Person responsible for completing this (Name) questionnaire. (Title) (O/fice address) (Telephone number and extension) PART 1 INTRODUCTORY QUESTIONS 1. Did your unit offer bonds or undertake other long-term financing in calendar 1966? (Use offering dares as defined on page 1 to identify the timing of financing.) (a)--------------------Ye s (b)No 2. If you checked Yes in question 1, did you experience any postponment, abandonment, or reduction in amount of your actual or your planned bond offering (or offerings) in calendar 1966? (a)Yes (b)No 3. If you checked No. in question 1, why? (Check only one of the following alternatives.) (a)We had no plans to borrow long-term funds in calendar 1966. (b)______________Other reasons. Instructions: Your answers to the above questions determine which other parts (if any) of the questionnaire you should complete. Please follow carefully the instructions in the box below. After completing the parts specified by these instructions, you may wish to make additional comments in the space provided at the end of this questionnaire. If you checked: Complete the following additional parts of the questionnaire. Yes, in Question 2 Parts II, III, IV. No, in Question 2 Part II only (omitting questions 8 through 12). (a), in Question 3 Return questionnaire without proceeding further. 1^ (b), in Question 3 Parts III and IV only. Except to comment in the space at the end of this questionnaire, if you wish. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

PART II BOND OFFERINGS DURING CALENDAR 1966 Instructions: Please give separate answers to the questions in this part for each bond offering you made during calendar 1966 - using Column A for the first offering, column B for the second (if any), and so forth. If a bond offering on a given date included two or more bond issues, treat them as if they constituted only one issue for the purpose of answering this questionnaire. Thus, you should fill out only one column for each such bundle of issues offered on a single date. First bond (A) Second bond(B) Third bond (C) Fourth bond (D) offering offering (if any) offering (if any) offering (if any) 4. Timing, size, and net interest cost of offering. (a) Offering dated(month, day, year). —— ---------------------_ ----------------------- (b) Settlement dated/ (month, day, year). ---------------------— ----------------------— ----------------------- (c) Total amount received by your unit for the offering (in dollars). $ $_____________ $ $ (d) Net interest cost (to nearest basis point). % % 1 % 5. Type of bond offered (a) General obligation.^ (b) Other. ——-------------— -------------------- 6. Purpose of offering. Please show, to the nearest dollar, how funds raised by this offering were to be distributed among the following uses J/ (if there was more than one use, the amounts should add to the figure which you entered for question 4, (c) above.) (a) Water, sewer, irrigation, gas, ond electric facilities. $_____________ _ $_______________ $________________ 1 (b) Educational facilities. $ $_____________ $ $. (c) Roads, bridges, and other transportation facilities. $______________ $________ ____—_ $_______________ $ (d) Health, welfare, and cultural facilities. $ $ $ $. (e) Administrative facilities. $_______________ $_______________ $------------------------ $- (Question continues on page 5) — See definitions of terms on pages 1 ond 2. 2/ See pages 1 and 2 for an elaboration of definitions (a) through (e). STATE AND LOCAL BORROWING IN 1966 575 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

First bond (A) Second bond (B) Third bond (C) Fourth bond (D) offering offering (if any) offering (if any) offering (if any) (f) Other purposes (pleose specify briefly in the appropriate box). $___________________ 7. Was this bond offering acquired in its entiety by an agency of the Federal government or a State government? (o)_______ Yes (b)No 8. Prior to the offering date, was this offering (or any part thereof) ever postponed during calendar 1966? (a)Yes (b)No 9. If you checked Yes to question 8, how many weeks did the postponement last? weeks weeks 10. Was the amount obtained by this offering less than the amount which you had originally wanted to borrow? (a)_______Yes (b)No 11. If you checked Yes to question 10, how large was the decrease in the offering? (in thousands of dollars). 576 FEDERAL RESERVE BULLETIN □ JULY 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

First bond (A) Second bond (B) Third bond (C) Fourth bond (D) offering offering (if any) offering (if any) offering (if any) 12. If you checked Yes to question 8 and/or question 10, please indicate the most important cause of the postponement or decrease in amount by a 1, the next most important cause by a 2, and so forth. (a) Court proceedings (such as an injunction against on issue or offering). (b) Misspecification of underwriters’ bids, or other underwriting delays NOT related to the interest cost of borrowing. (c) Bond referendum difficulties (such as the offering having been voted down). (d) Interest rates exceeded statutory, constitutional, and/or referendum-imposed ceiling. (e) Interest rates were judged to be too high, even though answer (d) did not apply to the bond offering. (f) Project cost estimates were revised upwards because of unanticipated increases in construction costs and/or chcnges in project specifications. (g) Unanticipated increases in revenues and/or reductions in non-capital outlays mode alternative funds available for the facilities that were to be financed by the bond offering. (h) Other reasons (please specify briefly in rhe appropriate box). 13. Was the bond offering specified in question 4 accelerated in timing during calendar 1966? (a)Yes (b)No STATE AND LOCAL BORROWING IN 1966 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

First bond (A) Second bond (B) Third bond (C) Fourth bond (D) offer ing offering (if any) offering (if ony) offering (if any) 14. Was the amount of this offering greater than that which you originally wanted to borrow? (a) Yes (b) No 15. If you checked Yes in question 14, how large was the increase in the offering (to the nearest dollar)? $ $ $ $ 16. If you checked Yes in question 13 and/or question 14, indicate below the most important cause of acceleration or increased borrowing by a 1, the next most important by a 2, and so forth. (a) Expected court cases or legislative ond administrative procedures took less time than had been anticipated. (b) Bond referendum was held earlier than anticipated. (c) Interest rotes were expected to increase later. (d) Project costs were greater than had been anticipated. (e) Tax and other recurring revenues were insufficient and/or current expenditures required more money than had been anticipated. XI m co (f) Other reasons (please specify briefly in the appropriate box). m x < m Instructions: When you have accounted for all of your bond offerings in calendar 1966, please proceed to part III UNLESS you checked No to question 2 of Part I. If you did the latter. do not proceed further except for making such comments as you may wish on the final page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 579 -8- PART 111 OTHER LONG-TERM FINANCING EXPERIENCE DURING CALENDAR 1966 17. Were any bond offering which you originally contemplated makingm calendar 1966 either abandoned or postponed beyond 1966? (a)Yes (bl No Instructions: If you checked No in the preceding question 17, do not answer the remaining questions of this part but go directly to part IV. 18. If you checked Yes in question 17, please indicate (approximately) the aggregate volume (to the nearest dollar) of separately-dated offerings so abandoned or postponed: $volume. 19. If you checked Yes in question 17, please show how you would have allocated the dollar amount you specified in question 18 among the following purposes (to the nearest dollar). (a) $Water, sewer, irrigation, gas, and electric facilities. (b) $ .................... Educational facilities. (c) $Roads, bridges, and other transportation facilities. (d) $Health, welfare, and cultural facilities. (e) $Administrative facilities. (f) $Other purposes (please specify briefly in the box underneath.) 20. If you checked Yes in question 17, please indicate below the most important reason for abandoning or postponing long-term financing with a 1, the next most important reason with a 2, and so forth. (a)Proposed bond offering (or offerings) was defeated in a referendum (or referenda). (bl Construction costs became too high. (c) Interest costs of borrowing were too high. (d) Tax or other revenues were larger than anticipated and/or current expenditures were smaller than anticipated, making funds available for construction or other capital outlays, (e) Federal or State grants-in-aid and /or long-term loans became available. (f)Other reasons (please specify briefly below). 21. If you checked interest costs of borrowing as having been of some importance in calendar 1966 (in item c of question 20), please indicate below which of the suggested considerations influenced your judgement during that year. (If more than one did, please rank them by relative importance as you did in question 20 above.) (a)Market interest rates exceeded statutory and/or constitutional limits. (b)Market interest rates exceeded a limit (or limits) set by a bond referendum (or referenda). Question continues on page 9 Include In such contemplated issues those which were under serious consideration by your governmental unit. But DO NOT include Issues which had no chance, in any case, of moving beyond the planning stage during calendar 1966. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

580 FEDERAL RESERVE BULLETIN □ JULY 1968 -9- 21. (Continued) (c)_____ .Market interest rates were expected to decline later. (d) High market interest rates made debt servicing costs too great. Other reasons (please specify briefly below) PART IV EFFECTS OF FINANCING EXPERIENCE IN CALENDAR 1966 ON CONSTRUCTION AND OTHER CAPITAL SPENDING^ 22. If your unit postponed bond offerings or did not borrow as much as it had originally contemplated doing^^in calendar 196 6, did this result in the postponment or cancellation of contract awards during the same calendar year? (a)Yes (b)No 23. If you checked Yes in question 22, please estimate below the aggregate dollar amount of such postponements and cancellations. (Write the number to the nearest dollar.) V $_________________________________ 24. If you answered question 23, please allocate the dollar amount which you gave there by the following purposes (to the nearest dollar.) 3/ (a) $ Water, sewer, irrigation, gas, and electric facilities. (b) $Educational facilities. (c) $Roads, bridges, and other transportation facilities. (d) $ Health, welfare, and cultural facilities. (e) $Administrative facilities. (f) $Other purposes (please specify briefly below). 25. If your unit postponed bond offerings or did not borrow as much as it had originally contemplated doing,— in calendar 1966, did it as a result lower spending on equipment or on projects for which contracts had already been awarded? (a)Yes (b)No 3/ 26. If you checked Yes in question 25, please state as best you can (to the nearest dollar)** the total amount of such spending curtailments. J/ See Definitions, on pages 1 and 2, for a definition of this term. _2- See the footnote to question 17 for a definition of “contemplated doing". 3/ If you prefer, you can make up your estimate to the nearest thousand dollars. But if you do this, please add three zeroes at the end when you write it down in the space provided. This is necessary for tabulating reasons. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATE AND LOCAL BORROWING IN 1966 581 -10- 27, If you checked No in BOTH questions 22 and 25, please indicate below why your abandonment, postponment, and/or reduction of the amount of calendar 1966 long-term financing did not affect either your contract awards or your capital spending during the same year. Designate the most important reason with a 1, the next most important with a 2, and so forth. (a)^hort-term borrowing was used primarily because it was expected that long-term interest rates would decline later. (b)Short-term borrowing was used primarily for other reasons than that suggested in item (a). (c)Cash disbursements were stretched our and/or postponed until calendar 1967. (d)Current expenditures were reduced below the level planned for calendar 1966. (e)Tax or other current revenues increased by more than had been anticipated. (f)Cash and/or other liquid assets were used. (g)Federal or State grants (or other non-loan transfers) became available to finance capital spending. (h)>Other reasons (please specify briefly below). 28. If your unit postponed bond offerings or did not borrow as much as it had originally contemplated doing, in calendar 1966, did this result in the postponment or cancellation of contract awards during the first seven months of 1967? Yes (b). No (End of Part IV) Additional Comments: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Recent Changes in Structure of Time and Savings Deposits In the 3 months ending April 30, 1968, in­ oriented analysis of current developments sured commercial banks made further up­ in banking, and in the savings market gener­ ward adjustments in the rates of interest ally, as well as for other purposes, informa­ they would pay on various categories of tion is needed on the levels and movements time and savings deposits in an effort to of rates and amounts of deposits outstanding remain relatively competitive with rising by major deposit types and by size of instru­ yields on money and capital market instru­ ment with some differentiation between ments. At the same time the rate of growth business and nonbusiness holders. To obtain in time and savings deposits slackened. The this information a new quarterly survey of slowdown in time and savings deposit growth time and savings deposits was launched by reflected in part transfers of funds from the Board of Governors of the Federal Re­ deposits into market instruments, on which serve System and the Federal Deposit In­ yields were rising during much of this period, surance Corporation beginning with January 31,1968. " " ' and also in part the reduced level of per­ sonal saving in the first quarter of 1968. The new survey used a probability sample Large banks were affected to a greater ex­ of all insured commercial banks, as de­ tent than small banks by the slowdown. scribed on pages 588-90, and a streamlined As of April 30, 1968, over two-thirds of questionnaire, which provided for the re­ all insured commercial banks were offering porting by each bank of the amount of time the 4 per cent ceiling on passbook savings and savings deposits outstanding and the and about the same proportion were paying most common rate of interest paid on new the 5 per cent ceiling on time deposits in deposits in the following major deposit cate­ denominations of less than $100,000. gories: (1) passbook savings, which may be Nearly all of these types of deposits were held only by individuals and nonprofit or­ held in banks paying these rates. On larger ganizations; (2) time certificates of deposit denomination time deposit instruments in denominations of less than $100,000 ($100,000 or more), on which the ceiling issued mainly to: (a) businesses or (b) non­ rate was raised to 614 per cent on April 19, business (consumer) holders; (3) time cer­ 1968, 6 per cent was the most common rate tificates of deposit in denominations of offered at the end of April by banks that $100,000 and over (held principally by held half of these deposits. businesses) issued in (a) negotiable form The rapid expansion in the role of com­ or (b) nonnegotiable form; (4) time de­ mercial banks as holders of the public’s sav­ posits, open account, in passbook or state­ ings has heightened the need for frequent ment form that are direct alternatives for information about these deposits. For policy- regular savings (held mainly by consumers); (5) all other open accounts in denomina­ tions of less than $100,000 (issued mainly Note.—Caroline H. Cagle of the Board’s Division to businesses); and (6) open account deof Research and Statistics prepared this article. 582 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

583 posits in denominations of $100,000 and 1 .) Passbook savings showed little change over (largely business holdings).1 in the most recent quarter, whereas these Succeeding surveys will use the same re­ deposits had increased by a quarterly rate porting sample and the abbreviated report­ of about I1/? per cent in 1967. Time de­ ing form, except that a more detailed form posit instruments issued in denominations of —compatible with the streamlined version less than $100,000 rose by almost 5 per cent —will be used once a year, probably in between January and April—considerably October, by all insured commercial banks less than in 1967—with all of the net in­ for benchmark purposes. The results of the crease occurring in instruments issued main­ January and April 1968 surveys are sum­ ly to nonbusiness or consumer holders. By marized in this article.2 contrast, most small and large denomination instruments issued principally to businesses declined, with the most rapid contraction GROWTH IN DEPOSITS, BY TYPE occurring in small denomination deposits Most categories of time and savings deposits subject to the 5 per cent ceiling. either declined or rose less rapidly in the 3 One of the few time deposit categories months ending April 30, 1968, than in the that showed substantial growth in the most preceding year. Total time and savings de­ recent quarter was the so-called “golden posits, IPC, at all insured commercial banks passbook” deposit, separate figures for which increased by 1.5 per cent between January first became available in the January survey. 31 and April 30, 1968—a quarterly rate of These deposits increased by about 26 per rise only about half as rapid as the average cent. They are issued for the most part by quarterly rate of increase in the previous 6 large banks that offer the 5 per cent ceiling months and two-fifths as great as in the 6 rate in the Boston, New York, and Chicago months ending July 31, 1967.3 (See Table Federal Reserve Districts. No doubt their popularity stems in part from the convenient ' The respondent banks were asked to classify their form in which they are handled and the total holdings of time certificates of deposit in de­ nominations of less than $100,000 as either mainly vigorous promotion given them. Other de­ held by businesses or mainly held by nonbusinesses posit categories that showed substantial (consumers) depending on whether 50 per cent or more of the total amount outstanding on the survey growth in the recent survey were large de­ date was held by one or the other of these two groups. nomination, nonnegotiable certificates of de­ No ownership designation was requested for the other deposit categories since earlier surveys of time and posit, which increased by 8 per cent—about savings deposits had indicated that a preponderance the same pace as in 1967—-and Christmas of these deposits was held by either businesses or consumers. savings and other special accounts, which 2 Previous surveys of time and savings deposits rose by 13 per cent, largely as a result of at all member banks were conducted by the Board of seasonal factors. Governors in late 1965, early 1966, and in January, April, July, and October 1967. The results of the sur­ veys appeared in the Bulletins for April 1966, p. 466; August 1966, p. 1102; April 1967, p. 517; July 1967, GROWTH BY BANK SIZE AND LOCATION p. 1099; September 1967, p. 1488, and January 1968, p. 41. Total time and savings deposits, IPC, grew Appendix tables for this article appear on pp. 591­ 602 of this Bulletin. less rapidly at large than at small banks in ’ Half-year comparisons were used here because the 3 months ending April 30, as shown in data for all nonmember insured commercial banks Table 2. Passbook savings and time deposits were not available quarterly in 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

584 FEDERAL RESERVE BULLETIN □ JULY 1968 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS (IPC) HELD BY INSURED COMMERCIAL BANKS ON JANUARY 31 AND JULY 31, 1967, AND JANUARY 31 AND APRIL 30, 1968 Amount Percentage change in Number of issuing banks (in millions of dollars) deposits Average Quar­ 1967 1968 1967 1968 quarterly terly Type of deposit rate rate July 31, Jan. July Jan. April Jan. July Jan. April Jan. 31- 1967- Jan.31- 31 31 31 30 31 31 31 30 July 31, Jan. 31, Apr. 30, 1967 1968 1968 Total time and savings deposits....... 13,313 13,221 13,241 13,515 145,672 156,428 165,592 168,048 3.7 2.9 1.5 Savings............................................ 12,596 12,547 12,742 12,758 87,848 90,431 92,994 93,373 1.5 1.4 0.4 Time deposits in denominations of less than $100,000—total... n.a. n.a. n.a. n.a. 35,374 41,324 47,031 49,283 8.4 6.9 4.8 Issued mainly to: Consumers—total.................. n.a. n.a. 11,766 12,046 n.a. n.a. 40,709 43,902 n.a. n.a. 7.8 Certificates of deposit1.... n.a. n.a. 11,689 11,952 n.a. n.a. 37,754 40,179 n.a. n.a. 6.4 Open account (passbook and statement form)2.... n.a. n.a. 452 663 n.a. n.a. 2,955 3,723 n.a. n.a. 26.0 Business—.total....................... n.a. n.a. 5,754 5,839 n.a. n.a. 6,322 5,381 n.a. n.a. -14.9 Certificates of deposit3.... n.a. n.a. 5,098 5,084 n.a. n.a. 4,987 4,016 n.a. n.a. -19.5 Open account4................... n.a. n.a. 1 ,432 1,426 n.a. n.a. 1 ,334 1 ,365 n.a. n.a. 2.3 Time deposits in denominations of $100,000 or more (issued mainly to businesses)—.total.. n.a. n.a. 2,955 3,470 18,614 19,921 21,290 20,558 3.5 3.4 -3.4 Negotiable CD’s........................ I ,298 1 ,436 1 ,385 1,632 13,489 14,401 15,202 14,173 3.4 2.8 -6.8 Nonnegotiable CD’s.................. 1 ,370 1 ,528 1 ,718 1 ,974 3,202 3,804 4,437 4,799 9.4 8.3 8.2 Open account............................. 455 533 492 548 1 ,923 1,716 1 ,651 1,587 -5.4 -1.9 -3.9 Christmas savings and other special accounts..................... 7,380 7,660 7,241 7,749 3,836 4,753 4,278 4,833 12,0 -5.0 13.0 n.a. Not available. 4 Includes time deposits, open account, in denominations of less 1 Includes all time certificates of deposit in denominations of less than $100,000, other than those described in footnote 2 above. than $100,000 for which, in the judgment of the reporting banks, 50 Note.—For January 31 and July 31, 1967, data were compiled from per cent or more of the outstanding volume of deposits was issued to information reported to the Board of Govenors of the Federal Reserve consumers (nonbusiness holders). System by all member banks and to the Federal Deposit Insurance 2 Includes time deposits, open account, issued in passbook, state­ Corporation by all insured nonmember commercial banks. For Jan­ ment, or other forms that are direct alternatives for regular savings uary 31 and April 30, 1968, the data were compiled jointly by these two accounts. Most of these are believed to be in accounts totaling less agencies from a probability sample of 2,375 insured commercial banks. than $100,000. For a description of the sample, see page 588. 3 Includes all time certificates of deposit in denominations of less Some deposit categories include a small amount of deposits out­ than $100,000 for which, in the judgment of the reporting bank, 50 standing in a relatively few banks that no longer issue these types of per cent or more of the outstanding volume of deposits was issued to deposits and are not included in the number of issuing banks. Dollar businesses. amounts may not add to totals because of rounding. issued mainly to businesses declined in the to be highly rate-sensitive; they probably January-April period at the largest banks diverted a greater proportion of their funds (total deposits of $500 million and over) into market instruments on which yields compared with some growth at banks below were rising than did the depositors of smaller this size. The only major category to show banks. an increase at the largest banks was small Among Federal Reserve districts the most denomination time deposits issued mainly to rapid growth in total time and savings de­ consumers, and even these deposits increased posits in the 3 months ending April 30 less rapidly than they did at the smaller occurred in the St. Louis District, which banks. This no doubt reflects in part the registered an increase of about 8 per cent— fact that depositors at the largest banks tend mainly in consumer-type time deposits. In Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 585 this District offering rates at small banks that in the other Reserve districts and business­ issue these deposits had generally been below type deposits declined. the ceiling. In the January-April period a Deposit flow figures in the 6 months from considerable number of small banks that July 1967 to January 1968 are shown in Ap­ had not previously issued these deposits be­ pendix Table 9. They are not comparable gan to offer them at the 5 per cent ceiling, for certain categories with the figures for and these banks attracted a sizable amount the most recent quarter because of a change of deposits. By contrast, a decline in total in the reporting form. For the three cate­ time and savings deposits occurred in the gories for which comparable data are avail­ New York Reserve District and there was able—total time and savings deposits, pass­ little change in the San Francisco District, book savings, and large denomination busi­ where very large banks hold a sizable pro­ ness-type deposits—banks in the largest size portion of these deposits. Consumer-type class experienced the least rapid rate of ex­ deposits rose less rapidly in these areas than pansion in these deposits during both the TABLE 2 CHANGE IN TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS BETWEEN JANUARY 31 AND APRIL 30, 1968 BY TYPE OF DEPOSIT, BY SIZE OF BANK AND FEDERAL RESERVE DISTRICT Busincss-type time Business-type time Consumer-type deposits deposits in Consumer-type deposits deposits in denominations of— denominations of— Total Total time and time and Group savings Con­ savings Con­ deposits sumer­ Less than $100,000 deposits sumer- Less than $!00,000t Total Savings type $100,000 or more Total Savings type $100,000 or more time time AMOUNT (in millions of dollars) IN PER CENT All banks........3..,.0..7...9........4,070 363 3,707 -300 -691 1.9 3.1 0.4 9.2 -5.3 -3.3 Size of bank (total deposits in millions of dollars): Less than 10........... 1,197 1 ,018 102 916 5 174 6.5 5.8 1. 1 10.9 0.7 111.3 10-50....................... 1 ,715 1,349 232 1,117 54 312 4.9 4.1 1. 1 9.8 5.2 30.7 50-100..................... 461 337 61 ■276 32 92 3.6 2.9 0.7 8.0 6.2 11.5 100-500................... 786 698 107 591 46 42 2.6 2.7 0.5 9.8 4.3 1.3 500 and over.......... -1,080 668 - 140 808 -437 -1,311 -1.7 i.5 -0.4 7.4 - 19.0 -8. 1 Federal Reserve district: Boston..................... 151 146 3 143 20 -15 2.5 3.0 0.1 14.7 14.2 -1.5 New York........ -821 20 20 O) -19 -822 -3. 1 0.1 0.1 (2) -1.7 -10.2 Philadelphia............ 337 599 58 541 -239 -23 3.6 7.5 1.1 21.4 -40.9 -3.6 Cleveland................ 234 424 40 384 -114 -76 1.7 3.4 0.4 14.7 -30.8 -6.6 Richmond.............. 335 266 72 194 80 -11 3.7 3.3 1.2 9.4 21.8 -1.9 Atlanta.................... 445 401 111 290 9 35 4.0 4.0 1.6 9.2 2.3 4.9 Chicago ........... 987 887 50 837 28 72 3.3 3.4 0.3 8.7 4.3 2.9 St. Louis................. 557 514 33 481 (9 43 8.5 8.8 1.3 14.7 -0.1 10.4 Minneapolis....... 165 281 6 275 - 108 -8 2.8 5.2 0.3 7.7 -48.2 -2.8 Kansas City....... 261 175 7 168 26 60 3.8 3.0 0.2 6.6 7.4 11.6 Dallas..................... 299 171 8 163 22 106 4.0 3.1 0.2 7.2 6.6 6.5 San Francisco........ 130 187 — 45 232 -5 -52 0.5 0.8 -0.3 4.7 -0.6 -1.4 1 Less than $500,(XX). deposits as shown here excludes Christmas savings and other special 2 Less than 0.05 per cent. funds. Consumer-type time deposits and business-type time deposits Note.—This table was compiled by comparing figures as reported by in denominations of less than $100,000 include the instruments the sample banks that had these types of deposits outstanding on April described in Table 1, footnotes 1-4. Business-type time deposits in 30, 1968, with information reported by the same banks on January 31, denominations of $100,000 or more include negotiable and non- 1968. It is not comparable to Table 1 to the extent that it excludes negotiable C.D.’s and open accounts. banks that issued some of these types of deposits on January 31 but Minus sign indicates a decrease. Dollar amounts may not add to no longer issued them on April 30. In addition, total time and savings totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

586 FEDERAL RESERVE BULLETIN □ JULY 1968 TABLE 3 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JANUARY 31 AND APRIL 30, 1968, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. 31 30 31 30 31 30 31 30 31 30 31 30 Number of banks, or percentage distribution Amount of deposits (in millions of dollars) or percentage distribution Savings deposits: Issuing banks.................................... 12,742 12,758 12,306 12,315 436 443 92,994 93,373 39,079 39,284 53,915 54,090 Percentage distribution by most com­ mon rate paid on new deposits: Total............................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3.50 ot less.................................... 32.5 31,1 33.3 31.9 9.2 8.8 11.7 11.0 22.5 20.8 3.9 3.9 3.51-4.00....................................... 67.5 68.9 66.7 68.1 90.8 91.2 88.3 89.0 77.5 79,2 96.1 96.1 Time deposits in denominations of less than $100,000: Issued mainly to consumers: Issuing banks................................ 11,766 12,046 11,357 11,631 409 415 40,709 43,902 23,759 25,540 16,950 18,362 Percentage distribution by most common rate paid on new de­ posits: Total.............................................. 100.0 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less.................................... 30.8 26.5 31.5 27.2 10.8 9.2 13.3 10.1 21.5 15,4 1.8 2.7 4.51-4.75....................................... 1.8 0.8 1.8 0.8 1.2 0.7 1.3 0.4 1.6 0.7 0.8 . 1 4.76-5.00....................................... 67.4 72.7 66.7 72.0 88.0 90.1 85.4 89.5 76.9 83.9 97.4 97,2 Issued mainly to businesses: Issuing banks.............................. 5,754 5,839 5,382 5,462 372 377 6,317 5,381 2,777 2,390 3,540 2,991 Percentage distribution by most common rate paid on new de­ posits: Total.............................................. 100.0 100.0 100,0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 4.50 or less.................................... 36.7 33,3 37.8 34.2 21.5 19.4 11.5 10.5 20.9 19.0 4.0 3.8 4.51-4.75....................................... 2.1 1.7 2.1 1.8 1.6 1.6 0.8 1.7 1.4 3.4 0.4 0.3 4.76-5.00........................................ 61.2 65.0 60.1 64.0 76.9 79.0 87.7 87.8 77.7 77.6 95.6 95,9 Time deposits in denominations of $100,000 or more: Issuing banks.................................... 2,955 3,470 2,532 3,037 423 433 21,290 20,558 2,023 2,545 19,267 18,013 Percentage distribution by most common rate paid on new de­ posits*: Total............................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less..................................... 22.9 15.8 24.9 16.9 11.3 8.1 2.6 2.0 12.9 7.5 1.4 1.1 4.51-4.75....................................... 1.5 0.9 1.6 0.9 0.5 0.9 0.2 0.1 0.8 0.4 0.1 0. 1 4.76-5.00....................................... 50.4 51.0 52.2 53.9 39.5 30.7 12.2 9.9 45,8 44.1 8.7 5.0 5.01-5.25....................................... 5.6 5.0 4.8 5.1 10.4 4.6 7.7 2.1 10.0 10.8 7.5 0.9 5.26-5.50....................................... 19.6 23.8 16.5 21.6 38.3 38.6 77,3 23.4 30.5 33.5 82.3 22.0 5.51-5.75...................................... 1.1 0.4 6.2 11.1 1 .0 12.6 5.76-6.00....................................... 1.9 0.8 9.7 48.9 1.7 55.6 6.01-6.25....................................... 0.5 0.4 1.2 2.5 1.0 2.7 ♦Prior to April 19, 1968, the maximum interest rate payable on time deposits in denominations of $100,000 or more was 5‘/a per cent; thereafter the maximum rate was 6% per cent on certain maturities. Shaded areas indicate that rates shown in the stub are higher than the maximum permissible rate on January 31, 1968. Note.—The most common interest rate for each instrument or group top rate in the range; for example, 4.00, 4.25, 4.50. On business-type of instruments refers to the basic stated rate per annum (before com­ time deposits, however, some large banks had rates at intervals of 14 pounding) on the largest dollar volume of deposit inflow during the of a percentage point, such as 5.125 and 5.375 per cent. 30-day period just preceding the survey date or, if a rate change was For a description of time deposits in denominations of less than made during this 30-day period, that rate prevailing on the survey date $100,000 issued mainly to consumers and those issued mainly to at which the largest dollar volume of deposit inflow was being gen­ businesses, see Table 1, footnotes 1-4. Time deposits in denominations erated. of $100,000 or more (issued mainly to businesses) include negotiable While rate ranges of >4 of a percentage point are shown in this and and non-negotiable CD’s and open accounts. other tables, the most common rate reported by most banks was the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 587 July-January period and in the most recent than in the case of banks that issue these quarter. instruments mainly to consumers. Neverthe­ less, for both categories of holders, about RATE STRUCTURE AND RATE CHANGES nine-tenths of the deposits were in banks paying the ceiling rate. The rate structure on passbook savings Rates on large denomination business­ showed little change in the January and type deposits—which are closely competitive April surveys, since a majority of the banks with other money market instruments—■ were already paying the ceiling rate in midmoved upward at a large number of banks 1967. On April 30, more than two-thirds of in the 3 months ending April 30. At the time all insured commercial banks reported that of the January survey nearly four-fifths of all the 4 per cent ceiling was their most com­ time deposits in denominations of $100,000 mon rate; about nine-tenths of all savings or more were in banks that were offering the deposits were in these banks. (See Table 3.) 5!/2 per cent ceiling. Between April 19, Some slow upward movement in rates oc­ when the rate ceiling on these deposits was curred, mainly at the smaller banks, in the raised to 6*4 per cent for maturities of 6 most recent quarter as well as in the preced­ months or more, and the April 30 survey ing 6 months, as shown in Appendix Tables date, over 100 banks, or about 3.5 per cent 10 and 11. of the total, raised their rates above 5*4 per On small denomination time deposit in­ cent. Most of these were money market in­ struments issued mainly to consumers, which stitutions located in big cities in the New are offered by nearly all commercial banks, York, Chicago, and San Francisco Reserve about one-twelfth of the banks raised their Districts. Among banks in the largest size offering rate in the 3 months ending April class—$500 million and over of total de­ 30. In addition, a small number of banks posits—where most of the large denomina­ that had not previously offered these deposits tion instruments are issued, the proportion began to do so. Nearly all of these were of banks of this size raising rates above the small and medium-sized banks that set the old 5*4 per cent ceiling by April 30 was offering rate at the 5 per cent ceiling. Re­ nearly half, and they held almost three-fifths flecting these changes, about three-fourths of all time deposits in large denominations. of the banks holding nine-tenths of all con­ The most common offering rate on large sumer-type time deposits reported the most negotiable CD’s at more than one-fourth of common rate paid at the end of April was the banks in the largest size class at the end 5 per cent. As in the case of passbook sav­ of April was 6 per cent; deposits held in ings, virtually all large banks were at the banks of this size paying this rate repre­ ceiling, while around seven-tenths of the sented about half of the total. smaller banks were paying this rate. On small denomination time deposits is­ AVERAGE INTEREST RATES PAID sued mainly to businesses, about 7 per cent of the banks raised their offering rate in the Weighted average interest rates offered on latest quarter. The most common rate paid major categories of time and savings deposits on April 30 at about two-thirds of the banks by size and location of bank are shown for was the 5 per cent ceiling. This was a some­ the April survey in Table 4 and for the what smaller proportion of the issuing banks January survey in Table 5. The rate averages Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN □ JULY 1968 TABLE 4 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON APRIL 30, 1968 (Per cent per annum) Business-type time deposits Consumer-type time deposits in denominations of— All Savings Bank location and,size of bank time and and $100,000 or more (total deposits in millions of dollars) savings consumer­ Savings deposits type time Time, Less than deposits Total CD’s open $100,0001 Nego­ account tiable Other CD's Allbanks: All size groups............... 4.44 4.24 3.91 4.94 4.94 4.95 4.90 5.72 5.56 Less than 10.............................. 4,34 4.31 3,75 4,87 4.87 4.93 4.73 5.11 4.87 10 50......................................... 4.29 4.23 3.84 4.92 4.92 4.99 4.84 5.15 5.13 50-100 ....................................... 4.31 4.21 3.86 4.97 4.97 4.95 4,90 5.35 5.22 100-500..................................... 4.34 4.18 3.93 4.97 4.97 4.97 4.93 5.53 5.23 500 and over............................ 4.64 4.25 4.00 4,99 5.00 4.94 4.99 5.82 5.78 Banks in— Selected large SMSA’s2: All size groups................. 4.52 4.22 3.96 4.98 4.98 4.95 4.96 5.77 5.67 Less than 10......................... 4.30 4.25 3.89 4.95 4.95 4.98 4.86 5.04 4.87 10-50..................................... 4.28 4.21 3.88 4.96 4.96 4.98 4.94 5.35 5.30 50-100................................... 4.34 4.22 3.95 4.98 4,98 4.94 4.92 5.43 5.24 100-500................................. 4.37 4.17 3.93 4.98 4.98 4.97 4.93 5.57 5.27 500 and over................ 4.65 4.25 4.00 4.99 5.00 4.94 4.99 5.82 5.79 All other SMSA’s: All size groups...................... 4.30 4.21 3.86 4,96 4.96 4.96 4.86 5.32 5.12 Less than 10......................... 4.24 4.22 3.71 4.89 4.89 5.00 4.51 5.46 4.91 10-50..................................... 4.32 4.25 3.84 4.97 4.96 5.00 4.88 5.26 5.01 50-100................................... 4.26 4.17 3.77 4.98 4.98 4.95 4.89 5.25 5.07 100-500................................. 4.29 4.20 3.92 4.95 4,95 4.96 4.92 5.37 5.09 500 and over......................... 4.43 4.28 3.95 5.00 5.00 5.00 5.00 5.39 5.38 Banks outside SMSA’s: All size groups.......................... 4,32 4.28 3.79 4.88 4.88 4.98 4.74 5.04 5.05 Less than 10............................. 4.36 4.33 3.73 4.86 4.86 4.92 4.74 5.09 4.87 10-50........................................ 4.28 4.25 3.81 4.89 4.89 4,99 4.73 4.95 5.01 50-100....................................... 4,33 4.25 3.85 4.95 4.95 5.00 4.80 5.33 5.36 100-500..................................... 4.28 4.20 3.97 4.96 4.96 4.94 4.95 5.37 5.23 500 and over............................. 4.51 4.50 4.00 5.00 5.00 5.00 5.50 1 Includes certificates of deposit and time deposits, open account, common rate reported on each type of deposit at each bank by the issued mainly to businesses. amount of that type of deposit outstanding. Christmas savings and 2 See footnote 2 of Table 5. other special funds, for which no rate information was collected, are Note.—The average rates were calculated by weighting the most excluded. for most major deposit categories were SAMPLE METHODOLOGY lowest for banks with total deposits of less The selection of 2,375 sample banks for use than $100 million, somewhat higher for in the quarterly survey of time and savings banks in the $100 to $500 million size class, deposits of individuals, partnerships, and and highest for the $500 million and over corporations was based on a ranking of all size group. “Golden passbook” deposits (in­ insured commercial banks by the amount of cluded in time deposits, open account, in total time and savings deposits, IPC, out­ Tables 4 and 5), are the principal exception; standing as of January 31, 1967. The banks nearly all banks pay the 5 per cent ceiling were then classified by location into three on these deposits. Average rates are also geographic groups. Banks with time and sav­ somewhat higher in big cities—large ings deposits, IPC, of $25 million or more Standard Metropolitan Statistical Areas were surveyed regardless of their geographic (SMSA’s)—and lowest for most types of location. Banks with such deposits of less deposits in banks that are located outside than $25 million were sampled according to SMSA’s. geographic group as follows: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 589 TABLE 5 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JANUARY 31, 1968 (Per cent per annum) Business-type time deposits Consumer-type time deposits in denominations of— AH Savings Bank location and size of bank time and and $100,000or more (total deposits in millions of dollars) savings consumer­ Savings deposits type time Time, Less than deposits Total CD’s open $100,0001 Nego­ account tiable Other CD’s All banks: All size groups............................. 4.39 4 21 3.90 4.92 4 92 4 98 4.91 5 40 5 26 Less than 10............................. 4.29 4.25 3.73 4.83 4.83 4,99 4.80 4.94 4^28 10-50......................................... 4.24 4.20 3.83 4.89 4,89 4 99 4.86 5.10 4.95 50-100..................................... 4.27 4 18 3.87 4.92 4.92 4.87 4 89 5.30 5 14 100-500..................................... 4.31 4 17 3.93 4.96 4.96 4.96 4.93 5.32 5.12 500 and over............................ 4.57 4.24 3.99 5 00 5 00 5.00 4.99 5 43 5 38 Banks in— Selected large SMSA’s2: All size groups......................... 4.47 4 21 3.96 4.98 4.98 4.99 4.95 5.42 5.33 Less than 10............ 4.27 4.23 3.88 4.92 4.92 4.97 4.83 4.90 4.96 10-50..................................... 4.25 4.18 3.87 4.96 4.96 4.97 4.90 5.19 5,19 50-100 ................................... 4.33 4 22 3 .95 4.97 4.98 4.91 4.92 5.34 5.13 100-500................................. 4.33 4.16 3.93 4.98 4.98 4.96 4.93 5.37 5.14 500 and over......................... 4.57 4.23 3.99 5.00 5.00 5.00 4 99 5.43 5.39 All other SMSA’s: All size groups.......................... 4.26 4. 18 3.86 4.92 4.92 4.87 4.89 5.19 5.06 Less than 10. ........................ 4.20 4. 15 3.68 4.84 4.84 5.00 4.90 5.00 4.76 10-50..................................... 4.29 4 22 3.84 4.96 4.96 4.93 4.89 5.12 5.01 50-100................................... 4.20 4 12 3.77 4.85 4.86 4 74 4.86 5.22 4.99 100-500 ................................. 4.26 4 18 3.92 4.94 4.94 4.98 4.89 5.15 5.07 500 and over........................ 4.41 4.28 3.96 5.00 5.00 5,00 5.00 5.39 5.27 Banks outside SMSA’s: All size groups......................... 4.26 4.23 3.77 4.83 4.83 5.00 4.79 5,00 4.74 Less than 10............................. 4.30 4.27 3.70 4.82 4.81 4.99 4.79 4.95 4.05 16-50......................................... 4.22 4.20 3.79 4,83 4.83 5.00 4.80 4.93 4.73 50-100....................................... 4.28 4.21 3.83 4,93 4.93 5.00 4.77 5.29 5.31 100-500.................................... 4,25 4.20 3.96 4.94 4.94 4.52 4.95 5.04 5.16 500 and over,........................... 4.41 4 40 4.00 5.00 5.00 5 00 5.00 See also Note to Table 4. 1 Includes CD’s and time deposits, open account, issued mainly to businesses. 2 The selected large Standard Metropolitan Statistical Areas, as defined by the Bureau of the Budget and arranged by size of population tn the 1960 census, are as follows: New York City Buffalo San Bernardino-Riverside Norfolk-Portsmouth Nashville Los Angeles Houston Tampa-St. Petersburg Gary-Hammond-E. Chicago Salt Lake City Chicago Milwaukee Louisville Ft. Worth Flint Philadelphia Paterson-Clifton-Passaic Indianapolis Syracuse Wichita Detroit Seattle Day ton Hartford Ft. Lauderdale-Hollywood San Francisco-Oakland Dallas San Antonio Akron Orlando Boston Cincinnati Columbus Oklahoma City Charlotte Pittsburgh Kansas City Phoenix Youngstown-Warren Des Moines St. Louis San Diego Albany-Schenectady-Troy Sacramento Ft. Wayne Washington, D.C. Atlanta San Jose Honolulu Baton Rouge Cleveland Miami Birmingham Omaha West Palm Beach Baltimore Denver Memphis Jacksonville Rockford Newark New Orleans Jersey City Tulsa Jackson, Miss. Minneapolis-St. Paul Portland, Ore. Rochester Richmond Group A—Selected major Standard Met­ there were less than 20 of these banks—all ropolitan Statistical Areas (SMSA’s).4 banks were surveyed; 20-100 banks—a Banks in these areas with less than $25 sample of 20 banks was surveyed; over 100 million of total time and savings deposits, banks—a sample of 40 banks was surveyed. IPC, were sampled according to the number Nevertheless, because of the high proportion of these banks within the SMSA; that is, if of banks with $25 million or more of total time and savings deposits, IPC, most of the total deposits in these SMSA’s was * For a list of the SMSA’s included in this group, accounted for by the survey banks. For this see footnote to Table 5 above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

590 FEDERAL RESERVE BULLETIN □ JULY 1968 group survey data are subject to minimum nonmajor SMSA’s and in areas outside sample variability. SMSA’s. Care should be taken in evaluating Group B—Other SMSA’s. A total of 150 the economic import of changes in deposit banks was surveyed. categories that (1) are a relatively small Group C—Areas located outside SMSA’s. part of total time and savings deposits, IPC, A total of 400 banks was surveyed. and (2) include many of the smaller banks For the most part, sampling variability in outside the major SMSA’s. In addition to the survey data is associated with that part sampling variability, the data are, of course, of each deposit category resulting from esti­ subject to fluctuations associated with single­ mates derived from the smaller banks in day figures. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 591 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.00 3.00 or less 3.50 4.00 or less 3.50 4.00 NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 All hanks......................................................................... 12 742 2,846 1,293 8,603 92,994 5,721 5,168 82,105 Size of bank (total deposits in millions of dollars): Less than 10.......................................................... 8,460 2 365 752 5,343 9,823 1 ,857 854 7,112 10-50........................................................................... 3,453 423 478 2,552 21,057 2’213 2,590 16'254 50-100......................................................................... 393 36 46 311 8,200 '533 759 6,908 100-500....................................................................... 338 20 16 302 19,694 934 876 17,884 500 and over............................................................... 98 3 1 94 34,221 184 (2) 33,948 Federal Reserve district: Boston..................................... .................................. 364 15 5 344 3,905 68 97 3,740 New York,.............................................................. 449 40 9 400 14'837 770 231 13^836 Philadelphia..................... ............................... 497 145 169 183 5,486 1,077 1,559 2^849 Cleveland............. . 841 185 106 550 9,782 473 833 8,476 Richmond.................................................................. 762 126 30 606 6'047 266 137 5 ,643 A tlanta .. . ............................................................. 1 ,566 124 66 1,376 6,860 87 260 6,514 Ch’paH^.. ......................................................... 2 411 791 302 1,318 16,809 1,501 1 ,265 14,043 St Louis................................... 1 ,298 516 176 ’606 2,595 732 '308 1,555 Minneapolis................................................................ 1 350 583 358 409 1,888 596 462 830 Kansas City..................................................... 1,679 293 50 1,336 3,387 138 13 3,237 Dallas.......................................................................... I'125 27 23 1 ,075 3,334 13 4 3,318 San Francisco ....................................... 401 401 18,063 18,063 April 30, 1968 All banks* * ......... . ..................... 12,758 2,644 1,322 8,792 93,373 5,262 5,006 83,105 Size of bank (total deposits in millions ol dollars): Less than 10............. .............................................. 8,246 2,154 816 5,276 9,334 1,482 929 6,923 10 50........................................................................... 3,677 431 444 2,802 21,750 2,173 2,298 17,279 50-100......................................................................... '393 38 44 311 8,200 558 715 6,926 100^-500....................................................................... 346 19 17 310 20,019 926 960 18,133 500 and over.............................................................. 96 2 I 93 34,071 (2) (2) 33,844 Federal Reserve district: Boston.................................................... .................. 364 15 I 348 3,908 69 (2) 3,781 New York........................................................... 451 39 13 399 14,859 762 372 13,726 Philadelphia ........................ . . 498 169 166 163 5,545 I ,091 1,572 2,882 Cleveland. ................................................................. 845 138 128 579 9,823 425 648 8,749 Richmond .........................>■....> ..... .. 765 79 30 656 6,121 88 140 5,894 Atlanta ....................................................................... 1,571 101 65 1 ,405 6,974 81 278 6,616 Chicago............. ..... ..... .. 2,396 732 292 1,372 16,861 1,403 1,217 14,242 St. Louis•,................................................................ 1,278 442 172 664 2,629 616 244 1,769 Minneapolis................................................................ 1,353 584 382 387 1,895 577 461 856 Kansas City............... . ■ 1,685 318 50 1,317 3,397 138 12 3,247 Oallas.......................................................................... 1'151 27 23 1,101 3,342 13 4 3,326 □ au riAiiviauu............................................................................ • 401 401 18,018 18,018 For notes to Appendix Tables 1 -8, see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

592 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX TABLE 2—CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— ISSUED MAINLY TO CONSUMERS 3 ' Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 4.75 5,00 or 4.00 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 All banks................................. 11,689 65 1,163 2,355 216 7,890 37,754 27 913 4,435 529 31,849 Size of bank (total deposits in millions of dollars): Less than 10................... 7,664 60 791 1,772 107 4,934 8,979 9 413 2,196 83 6,277 10-50............................... 3,269 1 340 509 99 2,320 10,910 (2) 433 1 ,488 291 8,699 50-100............................. 359 15 48 3 292 3,299 (2) 6 524 17 2,752 100-500........................... 308 3 15 25 6 259 5,636 18 49 225 138 5,206 500 and over................... 89 ............. 2 I 1 85 8,931 (2) (2) (2) 8,915 Federal Reserve district: Boston............................. 247 30 22 49 146 346 31 14 10 290 New York....................... 284 2 32 17 3 230 2,036 (2) 6 17 15 1 ,998 Philadelphia.................... 434 1 33 170 26 204 2,521 (2) 31 527 115 1 ,830 Cleveland........................ 749 173 225 2 349 2,555 113 493 (2) 1,946 Richmond....................... 568 24 34 103 50 357 1,874 (>) 8 68 165 1 ,633 Atlanta............................ 1 ,504 2 366 168 11 957 3,232 (2) 253 193 12 2,773 Chicago........................... 2,219 3 204 393 26 1,593 8,789 (■) 159 660 127 7,843 St. Louis......................... 1,228 3 158 426 641 3,362 0) 257 805 2,300 Minneapolis.................... 1,312 25 26 479 782 3,584 7 37 1,384 2,156 Kansas City.................... 1,630 3 104 264 1,259 2,537 1 18 231 2,288 Dallas............................. 1,146 2 2 83 47 1,012 2,175 (2) (2) 21 79 2,074 San Francisco................ 368 1 5 2 360 4,744 (2) 23 (2) 4,719 April 30, 1968 AU banks................................. 11,952 64 993 2,091 117 8,687 40,179 6 649 3,608 184 35,732 Size of bank (total deposits in millions of dollars): Less than 10................... 7,684 57 654 1,625 36 5,312 9,216 5 297 1 ,787 22 7,104 10-50............................... 3,495 5 309 424 75 2,682 11,967 (') 271 1,338 148 10,209 50-100............................. 368 I 13 22 1 331 3,483 (2) 3 199 (2) 3,281 100-500........................... 315 I 14 19 4 277 6,022 (2) 61 281 13 5,667 500 and over................... 90 ............. 3 1 1 85 9,491 18 (2) (2) 9,471 Federal Reserve district: Boston............................. 276 3 30 31 27 185 316 (') 27 16 2 272 New York....................... 287 1 30 15 2 239 1,968 (2) 6 34 (2) 1,916 Philadelphia................. 454 9 43 145 ........ 257 3,022 I1) 55 279 ........ 2,687 Cleveland...................... 773 98 198 2 475 2,823 43 257 (2) 2,519 Richmond....................... 556 33 99 49 375 1,966 7 72 82 1 ,805 Atlanta............................ 1 ,467 330 147 12 978 3,438 212 218 17 2,991 Chicago........................... 2,270 3 173 337 2 1,755 9,134 (>) 108 544 (2) 8,480 St. Louis......................... 1,301 155 368 778 3,738 126 750 2,864 Minneapolis................... 1,348 23 47 422 856 3,830 5 62 1,164 2,599 Kansas City.................... 1,706 23 54 235 1,394 2,703 (>) 4 229 2,470 Dallas............................. 1,153 2 91 23 1 ,037 2,321 (2) 27 67 2,227 San Francisco,................ 361 3 358 4,920 16 4,904 For notes to Appendix Tables 1-8, see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 593 APPENDIX TABLE 3—TIME DEPOSITS, OPEN ACCOUNT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— CONSUMER-TYPE IN PASSBOOK OR STATEMENT FORM Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 * Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 4.75 5.00 or 4.00 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 All banks........................................... 452 10 76 18 ■ S 343 2,955 I 22 26 8 2,898 Size of bank (total deposits in millions of dollars): Less than 10......................... 126 I 42 7 76 60 (2> (0 (9 60 10^50..................................... 198 5 25 6 2 160 305 1 2 2 (2) 298 50-100................................... 44 1 4 4 1 34 206 (9 15 24 (2) 164 100-500................................ 55 3 4 1 1 46 407 (9 3 (2) (2) 403 500 and over......................... 29 1 I 27 1,976 (2) (2) 1,972 Federal Reserve district: Boston.................................. 106 3 3 100 625 12 <9 613 New York.......................... 61 i 4 1 55 671 (2) 2 (9 668 Philadcplhia......................... 6 I 4 1 37 (9 2 (2) Cleveland............................ 9 2 2 5 62 (9 (2) 61 Richmond............................. 93 25 68 191 (l) 191 Atlanta.................................. 16 3 5 8 10 (*) (9 10 Chicago............................... 62 1 24 2 3 32 1,023 (2) 4 (2) 7 993 St. Louis............................... 8 4 1 3 5 (9 (9 (0 Minneapolis......................... 1 1 (2) (2) Kansas City................... 10 3 1 2 4 2 (9 (9 (9 1 Dalias.................................... 42 3 1 38 81 (9 (2) 81 San Francisco....................... 38 I 5 4 28 247 (2) (9 2 245 April 30, 1968 All banks...................................... 663 8 126 16 5 508 3,723 1 143 29 9 3,541 Size of bank (total deposits in millions of dollars): Less than 10......................... 213 81 3 129 87 6 (9 80 10-50..................................... 300 5 35 8 2 250 547 1 4 2 (9 538 50-100.................................. 50 1 2 2 ! 44 240 (9 (9 (9 (9 214 100-500................................. 62 2 7 2 1 50 569 (2) 3 (9 (9 562 500 and over......................... 38 I 1 1 35 2,280 (9 (9 (9 2,147 Federal Reserve district: Boston........................... 142 2 3 137 797 (9 (9 795 New York..................... 68 4 1 63 730 1 (9 729 Philadelphia......................... 10 1 5 4 42 (2) 3 39 Cleveland.............................. 47 3 25 1 18 173 1 2 (9 170 Richmond............................. 145 50 95 292 6 287 Atlanta................................. 40 26 2 12 14 (l) (9 14 Chicago................................. 116 7 2 3 104 1,272 (9 (2) 7 1,244 St. Louis..............5.................4 1 6 (9 (9 Minneapolis.............5.......... 5 24 24 Kansas City......................... 9 2 2 2 3 5 (2) (9 (9 4 Dallas.................................. 34 34 91 91 San Francisco....................... 42 5 4 33 277 130 2 145 For notes to Appendix Tables 1-8, see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

594 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX TABLE 4—CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— ISSUED MAINLY TO BUSINESSES 1 Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 ' Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 4,75 5.00 or 4.00 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 All banks.............................. 5,098 86 530 940 91 3,451 4,986 5 139 392 53 4,396 Size of bank (total deposits in millions of dollars): Less than 10........................ 2,816 79 390 581 29 1 ,737 883 5 52 192 5 629 10-50..................................... 1,728 4 106 308 50 I ,260 1,005 (') 49 1 13 24 820 50-100................................... 245 2 15 32 5 191 406 (2) 3 44 5 355 100-500................................. 231 17 18 5 190 822 (2) 15 43 17 747 500 and over........................ 78 2 1 2 73 1,869 21 (2) (2) 1,845 Federal Reserve district: Boston.................................. 209 4 12 36 6 151 112 (‘ 10 6 95 New York........................... 287 1 43 61 25 157 558 (2 9 18 14 517 Philadelphia........................ 178 9 8 98 3 60 540 2 35 16 486 Cleveland............................. 279 82 43 154 333 7 6 320 Richmond,.......................... 384 46 58 28 28 224 257 15 7 232 Atlanta. ............................... 606 166 55 3 382 424 51 36 (l) 337 Chicago................................ 896 26 39 180 24 627 627 3 6 83 2 533 St. Louis............................... 583 81 187 315 575 46 138 391 Minneapolis.......................... 326 2 107 217 230 2) 45 185 Kansas City.......................... 559 33 115 411 369 3 9 357 Dalias. ................................. 546 3 1 1 541 246 1 (2) (2) 245 San Francisco,..................... 245 3 29 1 212 714 1 10 (2) 696 April 30, 1968 All banks..................................... ..5,084 64 575 743 76 3,626 4,016 6 166 197 53 3,594 Size of bank (total deposits in millions of dollars): Less than 10......................... 2,665 57 435 395 23 1,755 561 5 98 59 3 396 10-50..................................... 1,873 3 117 320 47 1,386 881 (0 43 89 30 720 50-100................................... 236 2 7 18 1 208 368 (2) 38 (2) 311 100-500................................. 234 1 14 9 4 206 812 (2) 16 1 1 2 784 500 and over........................ 76 1 2 1 1 71 1 ,394 (2) <2) (2) (2) 1,383 Federal Reserve district: Boston................................ 205 I 3 29 2 170 110 (2) '0 4 (2) 104 New York............................. 249 1 46 28 24 150 530 (2) 9 1 6 514 Philadelphia......................... 207 9 16 89 3 90 297 o 2 22 19 254 Cleveland............................. 346 55 58 233 214 7 6 201 Richmond............................. 417 23 81 27 47 239 301 1 13 3 27 257 Atlanta................................ 665 216 84 365 408 116 18 273 Chicago, t........................... 792 28 38 79 647 515 3 ri) 29 482 St. T,ouis,............................ 422 58 123 241 208 15 68 126 350 23 93 234 105 1 29 75 Kansas City.......................... 585 33 81 471 365 2 5 357 Dallas., ............................. 621 2 3 46 570 262 (2) 8 253 225 3 6 216 702 5 697 For notes to Appendix Tables 1-8, see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 595 APPENDIX TABLE 5—TIME DEPOSITS, OPEN ACCOUNT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— BUSINESS-TYPE 5 Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 3.50 or 4.00 4.50 4.75 5.00 or 4.00 4.50 4.75 5.00 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31,1968 All banks...................................... 1,433 210 615 255 38 315 1,329 17 96 113 12 1,091 Size of bank (total deposits in millions of dollars): Less than 10,............. 619 106 315 97 29 72 174 3 29 17 5 119 10-50..................................... 445 61 195 107 2 80 167 4 24 28 (2) 111 50-100................................... 142 9 56 22 3 52 143 2 21 19 99 100-500................................. 155 25 38 22 3 67 328 3 14 44 3 264 500 and over...................... 72 9 11 7 1 44 516 5 7 5 (2) 497 Federal Reserve district: Boston........................... 64 2 27 16 19 31 (2) 7 6 18 New York............................ 253 9 135 36 2 71 555 1 23 23 (2) 507 Philadelphia......................... 150 54 45 37 14 46 4 7 12 23 Cleveland...................... 164 55 73 28 2 6 38 3 23 4 (2) 6 Richmond............................. 139 7 71 40 2 19 119 (0 15 6 (2) 96 Atlanta.................................. 138 3 81 29 4 21 31 (l) 5 5 6 15 Chicago................................. 105 10 50 24 21 178 5 2 49 122 St. T .ouis............................... 116 35 32 23 26 97 1 2 1 93 10 3 3 4 9 I (9 8 Kansas City, , . ... ...... 70 26 33 1 10 11 1 1 (2) 9 Dallas.................................. 132 3 50 9 24 46 95 (0 9 2 i 83 San Francisco,............ 92 3 18 9 4 58 119 (!) 2 6 (>) III April 30,1968 AU banks...................................... 1,426 221 534 208 39 424 1,364 35 123 107 11 1,089 Size of bank (total deposits in millions of dollars): Less than 10................... 519 118 202 55 29 115 178 11 21 14 2 130 10-50..................................... 517 54 215 115 1 132 223 4 51 30 (2) 138 50-100................................... 152 13 60 13 5 61 179 4 17 15 3 140 100-500................................. 166 27 46 19 4 70 311 4 27 42 6 231 500 and over ,.................. 72 9 11 6 46 473 12 6 5 450 Federal Reserve district: Rnston , . . ....... 76 5 28 15 28 52 (9 6 8 38 New York............................ 266 34 96 36 2 98 557 9 19 28 (2) 500 Philadelphia......................... 162 64 52 27 18 49 5 10 7 (2) 27 Cleveland. , . .....,,. 191 30 123 27 11 42 3 21 4 14 Richmond............................. 141 8 77 36 I 19 144 39 6 (2) 97 Atlanta............................. 117 2 18 31 4 62 18 (9 1 2 5 9 Chicago............................... 114 10 14 18 30 42 168 13 12 48 3 92 100 34 33 3 30 104 1 6 (0 97 14 5 3 6 17 1 (l) 16 Kansas City ........ 63 27 27 1 8 12 I 2 (2) 9 Dallas,..................... . 85 43 2 40 88 2 (2) 86 San Francisco............. 97 2 23 9 i 62 113 (2) 4 5 (2) 104 For notes to Appendix Tables 1-8, see p, 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX TABLE 6—NEGOTIABLE CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 * AU banks. .......................................... 1,385 214 32 713 106 320 15,202 231 181,2981,24312,412 Size of bank (total deposits in mil­ lions of dollars): Less than 10......................... 265 38 208 19 68 9 55 5 10-50...................................... 665 136 26 352 44 107 448 42 7 237 43 119 50-100.................................... 145 11 4 55 24 51 450 9 8 105 91 237 100-500.................................. 220 25 2 86 27 80 2,033 59 (2) 419 229 1,321 500 and over......................... 90 4 ........ 12 11 63 12,204 1 12 483 879 10,730 Federal Reserve district: Boston.................................. 93 49 25 19 910 85 68 758 New York............................. 141 10 24 47 18 42 5,883 5 3 201 148 5,527 Philadelphia........................... 47 4 2 30 5 6 404 (■) (2) 30 149 219 Cleveland............................... 113 2 1 95 3 12 948 (2) (2) 64 9 872 Richmond.............................. 71 18 2 42 2 7 254 17 (2) 87 (2) 129 Atlanta................................... 113 38 57 3 15 397 87 77 31 202 Chicago......................... 153 20........ 79 19 35 1,837 5 68 89 1,674 St. Louis................................ 77 16 ........ 55 ........ 6 246 68 ........ 9 .......1.69 Minneapolis...................... 107 72 21 14 241 17 25 198 Kansas City........................... 95 5 2 59 2 27 415 15 I2) 83 (2) 3H Dallas..................................... 258 26 1 118 21 92 1 ,421 10 (2) 417 167 823 San Francisco........................ 117 3 ........ 61 8 45 2,246 5 ........ 151 559 1 ,531 April 30,1968 All banks....................................... 1,632 194 27 739 85 482 31 60 1414,173 218 12 906 2663,442 1,8947,081 355 Size of bank (total deposits in mil­ lions of dollars): Less than 10.......................... 308 13 191 2 87 3 6 6 J16 H 72 (2) 27 (') 1 4 10-50.,.................................. 854 145 24 426 52 194 1 8 4 658 53 3 326 48 214 (2) 3 9 50-100.................................... 158 14 2 51 19 64 4 3 1 487 8 (2) 69 139 234 16 13 <2) 100-500.................................. 226 19 1 65 11 104 10 15 1 2,201 51 (2) 245 37 1,191 243 397 (2) 500 and over......................... 86 3 ........ 6 1 33 13 28 2 10,711 94 ........ 195 (2) 1,776 1,6326,666 (2) Federal Reserve district: Boston................................... 115 55 19 36 3 1 1 851 40 25 324 55 (2) (2> New York............................. 136 6 52 7 51 7 12 1 4,965 2 77 15 302 7423,825 (2) Philadelphia.......................... 71 28 1 30 3 5 1 3 386 17 (2) 30 1 171 (2) 88 Cleveland............................... 126 9 2 94 2 12 2 5 ........881 2 (2) 43 (2) 208 (2) 612 Richmond............................. 85 16 24 31 1 12 1 ..... 252 15 3 HO (2) 1 1 3 ........ (2) ........ Atlanta.................................. 146 65 52 4 22 3 418 104 56 48 150 60 Chicago................................. 208 4 ........ 89 12 93 7 3 ........ 1,840 2 .......1.75 17 483 297 867 ........ St. Louis................................ 83 6 58 15 4 239 47 31 66 94 Minneapolis........................... 102 25 54 16 7 240 6 18 102 115 Kansas City........................... HI 3 ........ 65 2 31 3 7 442 6 ........51 (2) 210 16 155 Dallas................................... 339 27 133 31 134 4 2 8 1,527 10 238 144 681 41 (2) 282 San Francisco....................... HO 5 26 4 55 4 12 4 2,133 7 38 5 631 659 784 9 ♦Prior to April 19, 1968, the maximum interest rate payable on time deposits in denominations of $100,000 or more was 5^ per cent; thereafter the maximum rate was 6*4 per cent on certain maturities. Shaded columns indicate that rates shown in the heading are higher than the maximum permissible rate on January 31,1968. For other notes see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 597 APPENDIX TABLE 7—NONNEGOTIABLE CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 * All banks 1,718 365 29 917 85 322 4,408 176 41,393 313 2,521 Size of bank (total deposits in mil­ lions of dollars): Less than 10.......................... 332 106 201 4 21 55 15 35 3 10-50.................................... 881 214 26 441 38 162 556 78 3 330 29 115 50-100.................................. 223 16 2 125 20 60 300 14 (!) 143 27 115 100-500.................................. 216 26 1 126 17 46 879 58 (2) 411 135 273 500 and over......................... 66 3 ........ 24 6 33 2,618 10 474 120 2,014 Federal Reserve district: Boston............ 38 17 3 18 61 13 4 44 New York...... 86 6 49 H 20 1 ,064 4 282 122 656 Philadelphia... 119 33 2 60 10 14 127 23 (2) 45 12 46 Cleveland. 122 65 50 7 156 23 97 37 Richmond 203 40 26 122 7 8 317 8 3 163 27 116 Atlanta... 216 57 ........ 138 9 12 273 55 .......1.34 47 37 Chicago . . . . 294 23 143 16 112 656 9 241 43 362 St. Louis.... 43 11 i 14 17 115 23 (2) 28 62 Minneapolis. 50 29 ........ 20 1 ........ 58 15 13 (2) Kansas City.. 229 72 126 3 28 104 8 57 I 1 29 Dallas............ 189 27 135 9 18 190 7 157 4 22 San Francisco 129 2 ........ 43 16 68 1,287 (2) .......1.64 13 1,109 April 30, 1968 1,974 273 27 1,083 103 444 11 24 9 4,778 125 8 1,186 138 1,286 165 1,746 125 Size of bank (total deposits in mil­ lions of dollars): Less than 10.......................... 439 116 23 246 6 48 179 30 5 135 2 7 10-50...................................... 1 ,022 129 575 71 232 2 8 5 640 50 324 57 175 <2) 23 5 50-100.................................... 232 8 2 127 13 80 1 1 365 9 l2> 152 20 175 (2) (2) 100-500.................................. 214 18 2 114 13 60 4 3 881 35 (2) 363 59 365 18 40 500 and over........................ 67 2 ........ 21 ........24 4 13 3 2,713 (2) ......2..11 .......5.63 138 1,683 115 Federal Reserve district: Boston............................ 65 3 41 11 8 1 91 (') 25 21 9 (2) (2) New York............................. 118 7 64 6 33. 3 4 1 1,163 4 166 18 296 123 552 (2) Philadelphia........................... 99 6 2 69 2 18 ........2 ........122 1 (2) 49 (2) 41 ........ (2) ........ Cleveland............. • 126 40 ........ 75 10 1 ........162 17 ........ 98 40 (2) ........ Richmond.............................. 174 16 69 29 59 1 325 4 124 15 182 (2) Atlanta................................... 233 60 139 7 27 272 53 115 3 100 Chicago.................................. 410 15 1 226 26 129 2 8 3 720 2 (2) 243 24 340 (2) 73 30 St. Louis................................ 173 67 1 68 3 34 205 37 (2) 86 12 69 Minneapolis........................... 70 25 ........ 40 3 1 ........ 1 ........ 49 3 ........18 2 (2)........ (2) ........ Kansas City.......................... 189 29 23 110 24 1 2 ........133 3 5 64 27 (2) (2) ........ Dallas..................................... 189 5 149 5 30 187 1 142 13 31 San Francisco........................ 128 ........ 33 11 71 4 5 4 1,350 56 15 149 33 1,028 70 •Shaded columns indicate that rates shown in the heading are higher than the maximum permissible rate on January 31, 1968. For other notes see p. 598. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

598 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX TABLE 8—TIME DEPOSITS, OPEN ACCOUNT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31 and on April 30, 1968 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 or 4.75 5.00 5.25 5.50 5.75 6.00 6.25 less less NUMBER OF BANKS MILLIONS OF DOLLARS January 31, 1968 ♦ AH banks 491 282 13 116 14 66 1,644 181 17 246 143 1,057 Size of bank (total deposits in mil­ lions of dollars): Less than 10......................... 161 119 4 30 8 64 58 3 2 10-50.................................... 107 76 17 2 12 47 37 3 (2) 5 50-100.................................. 61 28 3 3 10 36 19 2 4 100-500.................................. 99 39 34 4 16 146 34 46 47 500 and over......................... 63 20 18 5 20 1,351 32 185 136 999 Federal Reserve district: Boston.................... 9 3 4 20 5 (2) 14 New York.............. 58 8 2 27 3 18 1,105 7 (2) 179 107 812 Philadelphia........... 72 28 4 30 3 7 121 16 10 2 90 Cleveland. 23 17 2 2 2 21 (2) (2) (2) Richmond 49 37 8 3 48 31 (2) 15 Atlanta... 93 78 4 6 4 53 33 12 3 (2) 4 Chicago,. .. 43 24 10 8 28 15 3 (2) 8 St. Louis.... 68 65 3 59 60 Minneapolis, (2) (2) Kansas City.. 7 4 2 3 (2) (2) Dallas............ 32 15 12 5 14 2 8 4 San Francisco 36 4 2 15 2 13 172 3 (2) 21 (2) 119 April 30, 1968 All banks 548 252 3 201 10 61 6 15 1,584 95 11 170 8 311 190 799 Size of bank (total deposits in mil­ lions of dollars): Less than 10......................... 182 100 79 2 36 21 (2) 13 (2) 10-50..................................... 121 67 37 16 31 15 6 (2) 9 50-100.................................. 68 23 28 5 33 8 14 4 7 (2) 100-500................................ 44 38 3 22 2 127 28 (2) 43 28 (2) 500 and over......................... 66 18 19 10 4 13 1,357 24 (2) 93 (2J 266 180 793 Federal Reserve district: Boston.................... 13 2 6 4 24 (2) 5 (2) 18 New York.............. 60 15 23 12 6 1,103 5 74 (2) 214 163 646 Philadelphia........... 62 7 43 3 7 2 119 5 20 48 Cleveland. 21 16 4 21 10 (2) Richmond 48 37 27 9 18 Atlanta... 173 95 70 5 65 32 (2) 14 (2) 7 Chicago. . .. 28 6 2 8 25 5 (2) 2 (2) St. Louis.... 61 37 24 9 4 Minneapolis, 4 3 3 2 (2) Kansas City.. 12 8 3 4 2 (2) Dallas............ 24 6 6 14 4 6 (2) San’ Francisco 42 10 7 16 2 5 167 5 (2) 14 (2) 20 (2) 103 ♦Shaded columns indicate that rates shown in the heading are higher than the maximum permissible rate on January 31, 1968. Notes to Appendix Tables 1-8: Noth.—Data as of January 31 and April 30, 1968, were compiled from i Less than $500,000. information reported by a probability sample of approximately 2,375 2 Omitted to avoid individual bank, disclosure. insured commercial banks. For a description of the sample methodology, 3 Includes all certificates of deposit in denominations of less than see page 588. The figures exclude banks that reported no interest rate $100,000 of which, in the judgment of the reporting bank, 50 per cent or paid and that held no deposits on the survey dates and they also exclude more of the total amount outstanding on the survey date was issued to a few banks that had discontinued issuing these instruments but still had nonbusiness (consumer) holders. some deposits outstanding on the survey dates. Time deposits, open 4 Includes all certificates of deposit in denominations of less than account, exclude Christmas savings and other special accounts. Dollar $100,000 of which, in the judgment of the reporting bank, 50 per cent or amounts may not add to totals because of rounding. more of the total amount outstanding on the survey date was issued to In the headings of these tables under "Most common rate paid businesses. (per cent)” the rates shown are those being paid by nearly all 5 Includes all time deposits, open account, in denominations of less reporting banks. However, for the relatively few banks that re­ than $100,000 except those in passbook or statement form used as direct ported a rate in between those shown, the bank was included in alternatives for savings deposits, shown separately in Appendix Table 3. the next higher rate. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 599 APPENDIX TABLE 9—CHANGE IN TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS FROM JULY 31, 1967, TO JANUARY 31, 1968, BY TYPE OF DEPOSIT AND BY SIZE OF BANK AND FEDERAL RESERVE DISTRICT Consumer-type deposits Consumer-type deposits Total Total time and Business­ time and Business­ savings type time Con­ savings type time Con­ Group deposit deposits Total Savings sumer- deposit deposits Total Savings sumer­ type time type time AMOUNT (in millions of dollars) IN PER CENT All banks................................ 9,070 1,539 7,531 2,071 5,460 6.0 7.8 5.7 2.3 13.1 Size of bank (total deposits, in millions of dollars): Less than 10................... 1,430 74 1,356 266 1 ,090 7.7 65.5 7.3 2.8 12.1 10-50............................... 2,389 196 2, 193 623 1,570 7.4 23,0 7.0 3.0 14.5 50-100............................. 867 137 730 191 539 7. 1 21.0 6.3 2.4 15.3 100-500........................... 1,561 264 1,297 444 853 5.5 9.4 5.1 2.3 13.4 500 and over................... 2,824 868 1,956 548 1 ,408 4.6 5.7 4.3 1.6 11.8 Federal Reserve district: Boston............................. 516 48 468 123 345 9.4 5.1 10.3 3.2 44.8 New York....................... 1,119 509 610 292 318 4.4 6.7 3.4 2.0 9.1 Philadelphia.................... 727 33 694 244 450 8.5 5.3 8.7 4.6 16.7 Cleveland....................... 730 101 629 243 386 5.5 9.6 5.2 2.5 14.9 Richmond....................... 653 72 581 261 320 7.7 13. 1 7.3 4.5 15.1 Atlanta........................... 713 99 614 268 346 6.7 15.8 6.2 4. 1 10.3 Chicago........................... 1,548 194 1,354 1 19 1,235 5.5 8.3 5.2 0.7 13.2 St. Louis......................... 482 1 17 365 109 256 7.3 38.9 5.8 4.4 6.8 Minneapolis.................... 372 17 355 29 326 6.6 5.8 6.6 1.6 9.3 Kansas City.................... 448 48 400 9 391 7.0 10.0 6.8 0.3 15.5 Dallas............................. 486 124 362 -17 379 6.9 8.2 6.5 -0.5 17.1 San Francisco................. 1 ,277 178 1,099 391 708 4,9 5.0 4.8 2.2 13.8 Note.—This table was compiled by comparing figures as reported by type time deposits and business-type time deposits as used here differ the sample banks that had these types of deposits outstanding on January from the definition of these items used in text Tables 1-5 and Appendix 31, 1968, with information reported by the same banks on July 31, 1967. Tables 1-8 and 10. Consumer-type time deposits are defined here as all It is not comparable to Table 1 to the extent that it excludes banks that time deposit instruments issued in denominations of less than $100,000 issued these types of deposits on July 31, 1967, but no longer issued them and business-type time deposits include ail time deposit instruments in on January 31, 1968. In addition, total time and savings deposits as shown denominations of $100,000 and over, except that Christmas savings and here excludes Christmas savings and other special funds. Data for July 31, other special funds are excluded. 1967, were used for comparative purposes because information for all in­ Minus sign indicates a decrease. Dollar amounts may not add to total sured nonmember banks was not available for October 31, 1967. because of rounding. Because of a change in the reporting form in January 1968, consumer- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

600 FEDERAL RESERVE BULLETIN □ JULY 1968 APPENDIX TABLE 10—INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS, IPC, BETWEEN JANUARY 31 AND APRIL 30, 1968 Business-type time Savings Consumer-type time Instruments of less than 1 nstruments of $ 100,000 $100,000 or more Group Size of bank (total Size of bank (total Size of bank (total Size of bank (total deposits in millions deposits in millions deposits in millions deposits in millions of dollars) of dollars) of dollars) of dollars) All All All All bank bank bank bank sizes Less 10­ 100 sizes Less 10­ 100 sizes Less 10­ 100 sizes Less 10­ 100 than 100 and than 100 and than 100 and than 100 and 10 over 10 over 10 over 10 over Number of issuing banks Apr. 30, 1968 .......... 12,752 8,242 4,067 443 12,040 7,755 3,870 415 5,834 3,058 2.399 377 3,465 879 2,153 433 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP* Total......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, Jan. 31-Apr. 30, 1968......... 96.6 96.0 97.5 99. 1 85.3 83.3 88.6 93.0 72.5 66.0 78.7 85.7 54.7 41.8 60.0 54.7 Banks raising rate............ 2.4 2.5 2.4 0.7 8.0 8. 1 8.4 3.9 7.3 8.8 5.4 7.2 21.1 15.2 19.6 40.2 New most common rate 1 (per cent) 3.50 or less.......... 0.5 0.8 0.4 0.8 3.51-4.00............. 1.9 1.7 2.4 0.7 (2) 0.5 0.5 0.8 (2) 0.3 4.01-4.50............. 1.3 1.4 1.2 0.7 1.0 0.2 0.3 0.8 0. 1 1.1 0.2 4.51-4.75............. (2) 0. 1 (2) 0.5 0.7 2.6 4.76-5.00............. 6.7 6.6 7.2 3.4 5.7 6.2 5.2 6. 1 6.3 6.9 6.7 3.0 5.01-5.25............. 1.9 0.5 2.3 3.0 5.26-5.50............. 8. 1 4.2 8.0 16.9 5.51-5.75............. 1.1 0.3 0.4 6.2 5.76-6.00............. 1.8 0.3 0.7 9.7 6.01-6.25............. 0.4 0.3 0.4 1.2 Banks reducing rate........ 0.8 1.2 0.1 0.2 1.9 2.6 0.6 1.2 3.0 3.4 2.4 3.4 2.6 0.7 3.2 3.5 New most common rate 1 (per cent) 3.50 or less... 0.8 1.2 0.1 0.2 0.3 0.2 0.2 1.1 0.2 0.2 0.2 3.51-4.00..... 0.5 0.7 0.3 0.2 1.0 1.1 0.8 1.8 0.2 0. 1 0.2 0.5 4.01-4.50...... 1.4 1.9 0.3 0.8 1.7 2. 1 1.4 0.5 0.2 0.4 0.5 4.51-4.75...... (2) 0.2 (2) 0.5 4.76-5.00..... 1.3 0.2 1 .7 1.4 5.01-5.25..... 0.7 1.1 0.2 5.26-5.50..... (2) 0.2 Banks introducing new instrument................ 0.2 0.3 ..........4.8 6.0 2.4 1.9 17.2 21.8 13.5 3.7 21.6 42.3 17.2 1.6 Most common rate 1 (per cent) 4.00 or less.......... 0.2 0.3 1.0 1.4 0.3 0.2 3.6 5.2 1.7 1.6 0.7 0.6 0.9 0.2 4.01-4.50............. 0.7 1.0 0.1 3.3 3.0 4.2 4.4 12.6 1.8 0.2 4.51-4.75,... .. . . (2) (2) 0.8 0.8 1.0 0.3 4.76-5.00............. 3.1 3.6 2.0 1.7 9.5 12.8 6.6 1.8 13.0 23.0 11.4 0.5 5.01-5.25............. 0.3 0.5 5.26-5.50............. 3.0 5.7 2.5 0.7 5.51-5.75............. 5.76-6.00............. 0.1 6. 1 0.1 6.01-6.25............. 0.1 0.3 ♦Shaded areas indicate that rates shown in the stub are higher than the maximum permissible rate on the various instruments. 1 For description of most common rate, see Note to text Table 3, p. 1968, with |the rates reported by the same banks on January 31, 1968. 586. The table excludes banks that issued these types of deposits on January 2 Less than 0.05 per cent. 31 but no longer issued them on April 30. For a description of consumer-type time deposits and business-type time Note.—This table was compiled by comparing rates as reported by the deposits, see Table 1, p. 584. sample banks that had these types of deposits outstanding on April 30, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 601 APPENDIX TABLE 11—INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS, IPC, BETWEEN JULY 31, 1967, AND JANUARY 31, 1968 Savings Consumer-type time Business-type time Size of bank (total Size of bank (total Size of bank (total deposits in millions of deposits in millions of deposits in millions of Group dollars) dollars) dollars) All All All sizes sizes sizes Less 100 Less 100 Less 100 than 10­ and than 10­ and than 10­ and 10 100 over 10 100 over 10 100 over Number of issuing banks Jan. 31, 1968....................................... 12,742 8,460 3,846 436 12,661 8,406 3,819 436 2,954 700 1,832 422 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP* Total................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, July 31,1967- Jan. 31, 1968........................... 91.0 88.7 95.3 97.2 69.1 67.7 71.7 73.7 39.4 27.7 46. 1 29.6 Banks raising rate....................... 7.3 8.9 4.3 2.8 28.2 29. 3 26.0 24.5 31.9 20.5 28.8 64.5 New most common rate * (per cent) 0.9 1 . 1 0.6 0. 1 0.1 3.51-4.00 ........................... 6.4 7.8 3.7 2.8 (2) 0. 1 0.2 0. 1 0. 1 0.2 4.01-4.50............................. 3.0 3.6 2.0 0.7 0.5 0.3 0.4 1.5 4.51 4.75 ........................... 0.6 0.6 0.7 0.2 0.3 0.3 0.5 4.76-5.00............................. 24.4 25.0 23.2 23.4 14.4 18.0 12.5 17. 1 5.01-5.25............................. 4.6 0.4 4.8 10.4 5.26-5.50 ........................... 12.0 1.8 10.7 34.8 1.2 1.7 0.4 1.6 2.0 0.8 0.9 6.8 8. 1 7.1 3. 1 New most common rate 1 (per cent) 1.2 1.7 0.4 0.3 0.3 0.1 0.2 0.9 3.3 0. 1 0,5 3.51 4.00 ........................... 1.0 1.5 0.1 0.2 1.6 2.1 1.6 0.5 4,ot 4.50 ........................... 0. 3 0. 1 0.6 0.2 1. 1 1.5 1.0 4.51 4 75 ....... 0. 1 0 1 (2) 0.2 0.9 1.5 4.76-5.00 ........................... 1.8 2.7 1 .7 0.9 5 01 5 25 ....... 0.4 0.6 5.26 5.50 ........................... 0. 1 0. 1 0.2 Banks introducing new instru­ ment ....................... 0.5 0.7 1. 1 1.0 1.5 0.9 21.9 43.7 18.0 2.8 Mostcommon'rate 1 (percent) 0.5 0.7 0.8 3.3 0.1 3.51 4 00 ................... 0.4 0.6 0.2 0.2 4.0 11.6 1.9 0.2 4.01 4 50 ......................... 0. 5 0.3 0.9 4.0 10.0 2.5 0.5 4 51 4 75 .......... i (2) 0.1 4.76-5.00 ........................... 0.2 0. 1 0.4 6.7 10.3 15.9 10.2 1.6 5.01 5 25 ......................... 0.6 0.4 0.8 5.26-5.50 ........................... 2.2 2.4 2.5 0.5 ♦ Shaded areas indicate that rates shown in the stub are higher than the maximum permissible rate on the various instruments. 1 For description of most common rate, see Note to text Table 3, p. comparative purposes because data for all insured non member banks were 586. not available for October 31, 1967. 2 Less than 0.05 per cent. Because of a change in the reporting form in January 1968 consumer­ type time deposits and busincss-type time deposits as used here differ from Note.—This table was compiled by comparing rates as reported by the the definition of these items used in text Tables 1-5 and Appendix Tables sample banks that had any of these types of deposits outstanding on Jan­ 1-8 and 10. Consumer-type time deposits are defined here as all time de­ uary 31, 1968, with the rates reported by the same banks on July 31, 1967. posit instruments in denominations of less than $100,000 and business­ The table excludes banks that issued these deposits on July 31 but no type time deposits include all time deposit instruments in denominations longer issued them on January 31. Rates on July 31, 1967, were used for of $100,000 and over, except that Christmas savings and other special funds are excluded. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Membership of the Board of Governors of the Federal Reserve System, 1913-68 APPOINTIVE MEMBERS ’ Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin............................Boston.....................Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936, on which date his successor took office. Paul M. Warburg............................New York............................do...... Term expired Aug. 9, 1918. Frederic A. Delano..........................Chicago................................do...... Resigned July 21,1918. W. P. G. Harding............................Atlanta.................................do...... Term expired Aug. 9, 1922. Adolph C. Miller.............................San Francisco......................do...... Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936, on which date his successor took office. Albert Strauss..................................New York................Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah....................Chicago....................Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Platt...................................New York................June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills.................................Cleveland.................Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell..............................Minneapolis.............May 12, 1921 Resigned May 12, 1923. Milo D. Campbell...........................Chicago....................Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger........................Cleveland.................May 1, 1923 Resigned Sept. 15, 1927. George R. James.............................St. Louis...................May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936, on which date his successor took office. Edward H. Cunningham..................Chicago..............................do........ Died Nov. 28, 1930. Roy A. Young.................................Minneapolis.............Oct. 4, 1927 Resigned Aug. 31, 1930 Eugene Meyer..................................New York................Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee.........................Kansas City..............May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black..............................Atlanta.....................May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak...............................Chicago...................June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas.....................................Kansas City........................do..... Served until Feb. 10, 1936, on which date his successor took office. Marriner S. Eccles...........................San Francisco..........Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick........................New York................Feb. 3, 1936 Resigned Sept. 30,1937. John K. McKee...............................Cleveland...........................do......... Served until Apr. 4,1946, on which date his successor took office. Ronald Ransom...............................Atlanta...............................do......... Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison.........................Dallas......................Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis..............................Richmond...............June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper.............................New York...............Mar. 30, 1938 Served until Sept. 1, 1950, on which date his successor took office. Rudolph M. Evans..........................Richmond...............Mar. 14, 1942 Served until Aug. 13, 1954, on which date his successor took office. James K. Vardaman, Jr...................St. Louis..................Apr. 4, 1946 Resigned Nov. 30,1958. Lawrence Clayton............................Boston.....................Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe.........................Philadelphia............Apr. 15, 1948 Resigned Mar. 31, 1951. For notes see following page. 602 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

603 APPOINTIVE MEMBERS '—Continued Federal Reserve Dale of initial Other elates and information relating Name district oath of office to membership* Edward L. Norton..........................Atlanta......................Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell...............................Minneapolis.......................do........ Resigned June 30, 1952. Wm. McC. Martin, Jr.....................New York.................Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. A. L. Mills, Jr.................................San Francisco............Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson...............................Kansas City........................do........ Reappointed for term beginning Feb. 1, 1964. Paul E. Miller..................................Minneapolis..............Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston.......................Philadelphia..............Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson......................Dallas........................Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr.................................Atlanta......................Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell.........................Chicago....................Aug. 31, 1961 Reappointed for term beginning Feb. 1, 1962. J. Dewey Daane..............................Richmond.................Nov. 29, 1963 Sherman J. Maisel...........................San Francisco............Apr. 30, 1965 Andrew F. Brimmer........................Philadelphia...............Mar. 9, 1966 William W. Sherrill.........................Dallas.........................May 1, 1967 Reappointed for term beginning Feb. 1, 1968. CHAIRMEN 3 VICE CHAIRMEN 3 Charles S. Hamlin................Aug. 10, 1914-Aug. 9,1916. Frederic A. Delano.........Aug. 10, 1914-Aug. 9, 1916 W. P. G. Harding................Aug. 10, 1916-Aug. 9, 1922. Paul M. Warburg...........Aug. 10, 1916-Aug. 9, 1918. Daniel R. Crissinger............May 1, 1923-Scpt. 15, 1927. Albert Strauss.................Oct. 26, 1918-Mar. 15, 1920. Roy A. Young.....................Oct. 4, 1927-Aug. 31, 1930. Edmund Platt..................July 23, 1920-Sept. 14, 1930. Eugene Meyer......................Sept. 16, 1930-May 10, 1933. J. J. Thomas...................Aug. 21, 1934-Feb. 10, 1936. Eugene R. Black..................May 19, 1933-Aug. 15, 1934. Ronald Ransom..............Aug. 6, 1936-Dec. 2, 1947. Marriner S. Eccles..............Nov. 15, 1934-Jan. 31, 1948. C. Canby Balderston.... Mar. 11, 1955-Feb. 28,1966. Thomas B. McCabe............Apr. 15, 1948-Mar. 31, 1951. J. L. Robertson...............Mar. 1, 1966, Wm. McC. Martin..............Apr. 2, 1951 EX-OFFICIO MEMBERS SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo...................Dec. 23, 1913-Dcc. 15, 1918. John Skelton Williams .. Feb. 2, 1914-Mar. 2, 1921. Carter Glass........................Dec. 16, 1918-Feb. 1, 1920. Daniel R. Crissinger.... Mar. 17, 1921-Apr. 30, 1923. David F. Houston...............Feb, 2, 1920-Mar. 3, 1921. Henry M. Dawes............May 1, 1923-Dec. 17,1924. Andrew W. Mellon.............Mar. 4, 1921-Feb. 12, 1932. Joseph W. McIntosh.... Dec. 20, 1924-Nov. 20, 1928. Ogden L. Mills....................Feb. 12, 1932-Mar. 4, 1933. J. W. Pole......................Nov. 21, 1928-Sept. 20, 1932. William H. Woodin............Mar. 4, 1933-Dec. 31, 1933. J. F. T. O'Connor.........May 11, 1933-Feb. I, 1936. Henry Morgenthau, Jr........Jan. 1, 1934-Feb. 1, 1936. 1 Under the provisions of the original Federal Reserve Act the appointive members; that the Secretary of the Treasury and the Comp- Federal Reserve Board was composed of seven members, including troller of the Currency should continue to serve as members until five appointive members, the Secretary of the Treasury, who was ex- Feb. 1, 1936; that the appointive members in office on the date of that officio chairman of the Board, and the Comptroller of the Currency. Act should continue to serve until Feb. 1,1936, or until their successors The original term of office was 10 years, and the five original ap- were appointed and had qualified; and that thereafter the terms of pointive members had terms of 2, 4, 6, 8, and 10 years, respectively. members should be 14 years and that the designation of Chairman In 1922 the number of appointive members was increased to six, and and Vice Chairman of the Board should be for a term of 4 years, in 1933 the term of office was increased to 12 years. The Banking Act 2 Date after words “Resigned" and “Retired” denotes final day of of 1935, approved Aug. 23, 1935, changed the name of the Federal service. Reserve Board to the Board of Governors of the Federal Reserve 3 Chairman and Vice Chairman were designated Governor and Vice System and provided that the Board should be composed of seven Governor before Aug. 23, 1935. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statements to Congress Statement of J. L. Robertson, Vice Chair­ rities that are not traded on exchanges but man, Board of Governors of the Federal Re­ only “over the counter” (OTC), that Act serve System, before the Subcommittee on forbids brokers and dealers, generally speak­ Commerce and Finance of the Committee ing, to extend any credit whatever, and per­ on Interstate and Foreign Commerce, House mits banks to extend credit without being of Representatives, on H.R. 7696 and H.J. subject to any Federally imposed margin Res. 946, June 21, 1968. requirements. Under the authority granted by the bill, I appreciate the opportunity to present the the Board would issue regulations extending views of the Board of Governors on H.R. margin requirements to those OTC securi­ 7696, which would extend margin require­ ties that are actively traded in markets suffi­ ments to actively traded over-the-counter ciently developed to make such regulation stocks, and H.J. Res. 946, which would au­ feasible and appropriate. For these actively thorize a study of the activities of institu­ traded OTC securities, the effect would be tional investors by the Securities and Ex­ to enable brokers and dealers to extend change Commission. As indicated in a credit subject to the margin requirements recent letter to Chairman Staggers, the (whereas now they are prohibited from ex­ Board believes that there is evidence of sub­ tending credit at all) and to limit the stantial speculative activity, partly credit- amount of credit that banks may extend (be­ financed, in over-the-counter securities, cause the margin requirements would at the underlining the need for prompt action on same time be applied to loans by banks). H.R. 7696, and we welcome your prompt As you know, in March of this year the response in scheduling this hearing. Board amended its margin regulations to H.R. 7696 was introduced by Chairman broaden their coverage and to close some Staggers at the Board’s request. It would loopholes that appeared to have developed. amend Section 7 of the Securities Exchange The amendments extended margin regula­ Act of 1934 so as to extend margin require­ tions to lenders not previously covered, ments to over-the-counter securities. Section brought credit on certain convertible bonds 7 now authorizes the Federal Reserve Board under margin regulation for the first time, to limit the credit that brokers and dealers required an orderly bring-up over time of may extend on securities that are registered special low-margin subscription accounts to on a national securities exchange and to regular margin status, and restructured the limit the credit that banks (and other lend­ regulations in an effort to minimize eva­ ers) may extend for the purpose of pur­ sions. And earlier this month the Board chasing or carrying equity securities that are raised margin requirements from 70 to 80 so registered. However, with respect to secu­ per cent. 604 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

605 None of these changes, however, had any an exchange and (2) credit that banks and impact so far as over-the-counter securities other lenders may extend for the purpose of are concerned. Under the law as it now purchasing or carrying securities registered ■stands, the Board’s authority is restricted to on an exchange. But the Act controls bro­ credit used to purchase or carry exchange- kers’ credits much more strictly than credit registered securities. We believe that safe­ by banks and others by prohibiting brokers guards against the excessive use of credit in from extending credit on securities traded the over-the-counter securities market are over the counter, while banks and others still badly needed to round out the protec­ may lend on such securities without restric­ tion afforded the public by margin regula­ tion unless the purpose is to purchase regis­ tion in the volatile securities area. At the tered stocks. The Board commented on this same time, we can see no reason why bro­ disparity of treatment in its 1964 Annual kers and dealers should not be permitted to Report to Congress, as follows: “The pres­ extend credit to customers at regulated mar­ ent arrangement is inequitable in its con­ gins, at least on the more active and widely trasting treatment of brokers and banks. In traded over-the-counter stocks. Therefore, addition it limits the effectiveness of salutary in order to make margin requirements both controls over security credit and unneces­ more effective and more equitable, the sarily deprives over-the-counter securities of Board strongly supports H.R. 7696. credit facilities that might appropriately be Let me briefly outline the background and extended by brokers and dealers.” the need for this legislation, before I discuss the Board’s plans for implementing the bill, PURPOSES OF AMENDMENT as well as its long-range objectives under the Adoption of H.R. 7696 will permit the authority that would be granted. Board to move toward a more nearly equal treatment of all lenders (brokers, banks, and BACKGROUND others) with respect to credit extended for Before passing Section 7 of the Securities the purpose of purchasing or carrying over- Exchange Act of 1934, the law which H.R. the-counter securities. Presently, the princi­ 7696 would amend, Congress determined pal regulation applying to equity securities that the financial crisis of the preceding listed on the exchanges imposes an initial period had been caused in part by excessive margin requirement of 80 per cent. This credit flowing away from commerce and means in effect that anyone buying a $100 industry into the stock market, largely in the stock on credit must put up $80 in cash, or form of brokers’ credits used to purchase or in securities with an equivalent loan value. carry stocks registered on national securities Another way of saying this is that a loan on exchanges. Congress, however, also recog­ a $100 stock can not exceed $20. It must be nized that if brokers’ credits alone were re­ kept in mind, however, that these rules on stricted, credits from other sources—^partic­ margin credit for listed stocks apply only to ularly banks—would likely assume the role loans that are for the purpose of purchasing of the major source of stock market credit. or carrying such securities. They do not ap­ The 1934 Act accordingly authorized the ply when loans collateralized by listed securi­ Board to regulate both (1) credit that bro­ ties are obtained for other purposes, such as kers may extend on securities registered on to pay taxes, meet emergency expenses, ft- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

606 FEDERAL RESERVE BULLETIN □ JULY 1968 nance a business, buy a house or car, or any It may be noted also that the over-theother of the many and varied uses for which counter market itself has taken on some of people borrow money. the characteristics long identified with the In 1934 the difference in treatment for organized exchanges due, by and large, to credit purposes between listed and unlisted expanded investor interest and technical stocks was not considered important because advances in trading operations. This market the over-the-counter market was relatively development has produced an economic insignificant. In the intervening years since framework that facilitates the use of credit then, however, trading volume in the OTC to finance the purchase of unlisted stocks. market has risen sharply. At the time the More reliable quotations of prices, the basis Securities Exchange Act of 1934 was for ascertaining the “current market value” adopted, it is estimated that the dollar value of securities pledged for margin loans, are of OTC trading was less than one-sixth of now available. Further, with increased vol­ that on organized exchanges. By 1961, the ume, the market now has a greater “depth” ratio had risen to three-fifths, and since then —a necessary prerequisite for orderly liqui­ it is believed that OTC transactions have dation of stock collateral in cases of default. grown even more rapidly relative to volume on the exchanges, though no definite data BOARD ACTION IF H.R. 7696 are available. This trend is likely to be ac­ IS ADOPTED centuated by the fact that under the 1964 H.R. 7696 would not directly affect the pres­ Securities Acts Amendments, firms with 500 ent scheme of securities-market credit con­ or more shareholders and assets of more trols; it would simply broaden potential than $1 million, whose securities are traded coverage by authorizing the Board to en­ over the counter, must disclose information compass OTC securities within its credit to the public respecting their business and regulations. For exchange-traded stocks, finances in much the same fashion as com­ present margin regulations would continue panies whose securities are registered on ex­ to operate as they do now. Under the au­ changes. This new, readily available infor­ thority granted by the new legislation, the mation has a natural tendency to attract ad­ Board would simply extend these regula­ ditional investors into the over-the-counter tions from time to time to those OTC securi­ market and increase its size and importance. ties for which such regulation is deemed to As the volume of total trading in over- be appropriate. the-counter markets has increased, the scale It is not the Board’s present intention to and pattern of activity in some unlisted include all or even most unlisted equities stocks have come to resemble those of secu­ within the regulations. Many over-therities traded on the exchanges. With the in­ counter securities are not actively traded creased investor interest and expanded trad­ and, therefore, are frequently subject to less ing activity in the over-the-counter market, than firm price quotations. Moreover, many it appears to us inconsistent to continue the OTC stocks do not attract broad investor difference in margin regulation status be­ interest and probably are not suitable for tween exchange-traded stocks and the un­ margin regulations. Thinness of markets and listed stocks that most closely resemble lack of a broad investor following imply them. sufficient potential price volatility so that the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 607 use of credit in financing investment in such mechanics of the market that must be re­ stocks should not be encouraged. Conse­ solved and that require further study. Mar­ quently, we do not contemplate any change kets for over-the-counter securities are made in present requirements with respect to this by dealers who perform a necessary role in large category of OTC securities. seeing that those markets are orderly and H.R. 7696 permits the Board to develop reliable. To perform this function, the mar­ specific standards which would determine the ket-maker needs access to credit on a liberal securities that should be covered. This would basis. Credit extended to firms that make be done by regulation, and industry com­ markets in the OTC securities which are ments and suggestions would be solicited brought within the scope of margin regula­ through advance publication of the proposed tion thus would probably have to be ex­ rules. The Board’s intention would be to empted from the operation of margin regu­ develop standards that will encompass lation in much the same way that credit to within the ambit of margin regulation those the specialist on the exchange—who is the OTC stocks that have market and investor counterpart of the OTC market-maker—is characteristics similar to those of exchange- exempted from margin regulation today. traded stocks. On the other hand, the securities dealer At present, about 20,000 securities are who makes a market in OTC securities dif­ traded over the counter and daily price fers from his exchange counterpart in that quotations on nationally traded stocks are he is both a wholesaler and a retailer. This disseminated to the public for 1,200 to fact could produce conflicts of interest, es­ 1,500 issues. The Board believes, however, pecially when a firm both positions a secu­ that only a few hundred of these are traded rity and extends credit on it to its retail cus­ in sufficient volume to assure reliable pric­ tomers. Such a firm conceivably might be ing, reasonable liquidity, and substantial tempted to manipulate market prices of the investor and dealer interest. The Board’s securities in which it made a market, in or­ initial task will be to develop indexes of der, for example, to force margin calls when present and prospective market behavior to it needed funds. Limiting margin treatment be applied to individual issues, based on to the most active OTC securities would such factors as the number of shares out­ largely obviate this problem because it standing, number of stockholders, assets would generally bring under margin regula­ and earnings of the issuer, continuity of tion only those OTC securities in which market price quotations, number of dealers enough different firms make markets so that that make markets in the issue, indicated there is little chance of domination by a volume of trading, and other factors. As al­ single firm. ready broadly stated, these measurements The Board recognizes that the formula­ would be designed to limit the list of OTC tion of standards with regard to this and securities to be included under margin re­ other market characteristics is a difficult task quirements to those issues that are the most and has asked for and been assured of the active, and that would meet most, if not all, assistance of the Securities and Exchange of the prerequisites for exchange listing. Commission in the development of such We recognize also that there are problems regulations. involved in relating credit regulation to the The approach of H.R. 7696—that is, the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN □ JULY 1968 flexibility which would permit the Board to It is with regard to this area of equity in­ develop specific standards in the light of vestment by the institutional investors that study and experience—seems highly desira­ our knowledge is now the most severely ble. This approach allows the Board to adapt limited. A study of this subject would pre­ the coverage of margin regulations to future sumably require the collection of statistics developments in the OTC market. It is clear from the institutions that would reveal much that the OTC market is continuing to de­ more than is now known about the extent velop rapidly. This market is particularly and character of their equity holdings, and susceptible to automation. Plans are already of the volume and pattern of their trading in underway to funnel transactions in the mar­ the equity markets. We would support such ket through central computers, which would a program of data collection. Analysis of the tend to create a more reliable market with results should help to clarify the differences more accurate price information. At the in investment objectives that exist among in­ same time, the trend toward increasing trad­ stitutions and as between the institutions and ing activity in a wider and wider list of individual investors, and permit exploration stocks, in conjunction with automation, may of the economic implications of these differ­ also serve to increase the range of OTC is­ ences. sues attracting the use of credit. These and The rapid expansion of institutional par­ other developments, however, cannot be ticipation in the equity securities markets foreseen accurately, so that flexibility in the also raises important structural questions enabling legislation is needed if the Board is that need investigation—questions that bear to make appropriate regulatory adjustments on the efficiency with which our financial as markets evolve. system continues to serve the needs of the U.S. economy. For example, to what extent HOUSE JOINT RESOLUTION 946 have the changing activities of the institu­ The Federal Reserve Board also recom­ tions induced a shift in savings flows into mends enactment of H.J. Res. 946. This equities rather than debt instruments? Has resolution would authorize an SEC study of the increased institutional interest in equities the investment activities of financial institu­ brought a corresponding growth in equity tions, such as insurance companies, pension financing by corporations? If not, what are funds, mutual funds, and bank trust depart­ the impediments to increased equity financ­ ments. Institutional investors in the United ing, and what can be done to foster a better States for many years have provided the meshing of the supply and demand for the major channel through which credit flows two major classes of securities—debt and from savers to borrowers, and more recently equity? And what are the implications of in­ they have become the dominant channel for creasing institutional investment in equities, equity funds as well. By the end of 1967, it both for the structure of the securities mar­ is estimated that.institutional investors held, kets and for the availability of financing to at market value, around $130 billion of the various classes and sizes of business en­ stocks, and in the last decade their net ac­ terprise? quisitions of stocks have exceeded in value Answers—or at least informed judgments the net issuance of new stock by all corpora­ —should flow out of the proposed SEC tions combined. study, and would greatly enhance our under- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 609 standing of financial flows in the American cially interested in helping to obtain needed economy. The Federal Reserve System will information relating to bank trust depart­ be happy to cooperate to the extent that we ments under our supervision, and in par­ can with the Securities and Exchange Com­ ticipating in other aspects of the study for mission in such a study; we will be espe- which we have any special competence. Statement by William McChesney Martin, to establish a lower rate ceiling on time de­ Jr., Chairman, Board of Governors of the posits under $100,000. Regardless of the re­ Federal Reserve System, before the Com­ luctance all of us may feel about making mittee on Banking and Currency, House of such a distinction, the realities of today’s Representatives, on H. R. 16092, June 27, market absolutely require some scaling in 1968. maximum rates by size of deposits if banks are to compete for funds in the money mar­ I appreciate this opportunity to present the ket without at the same time disrupting the views of the Board of Governors on H.R. markets for small savings. Moreover, as a 16092, to extend for one additional year the practical matter, I think that we would find provisions of Public Law 89-597, which it very difficult to continue limiting the in­ would otherwise expire September 21 of terest rates paid by banks for savings if their this year. This statute provides the authority competitors—the savings banks and savings for coordinated regulation of the maximum and loan associations— were left free to post rates payable by Federally insured financial any rate they wished. institutions to attract savings funds. It also For these reasons, the Board believes it fixes a 10 per cent statutory maximum on essential that Public Law 89-597 be ex­ reserve requirements for member banks on tended, and we recommend that the author­ time and savings deposits (in place of the ity be made permanent. The need for effec­ former 6 per cent maximum), and author­ tive rate limitation has been especially acute izes the Federal Reserve Banks to buy and under recent circumstances, but the case for sell in the open market obligations of any extending this legislation need not rest on Federal agency. current market conditions. One could, of If the legislation before you were per­ course, conceive of circumstances under mitted to expire, the Federal Reserve and which the rate ceilings would no longer be the Federal Deposit Insurance Corporation needed, as today’s stresses in financial mar­ would retain authority to establish ceilings kets diminish in the future. In such an even­ on the interest rates offered on savings and tuality, the statute contains authority for time deposits by member banks and non­ suspension of rate ceilings. On the other member insured banks, respectively. But hand, as long as ceilings are needed, it seems we would lose a great deal of flexibility advisable to continue the flexible, coordin­ in distinguishing among types of deposits, ated approach embodied in the statute for and it was this flexibility that permitted us establishing them. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

610 FEDERAL RESERVE BULLETIN □ JULY 1968 If the rate ceiling authority is made per­ The Board proposes also that two minor manent, the present statutory exemption for related amendments be added to H.R. foreign official time deposits could be al­ 16092. The first would amend the eighth lowed to expire as scheduled on October 15 paragraph of Section 13 of the Federal Re­ of this year. This exemption was originally serve Act to permit advances to member adopted in 1962, before enactment of the banks to be secured by any obligation elig­ present flexible authority over rate ceilings, ible for rediscount or for purchase by Fed­ and it was intended to permit banks to com­ eral Reserve Banks. This would broaden pete for foreign official funds and thereby to such lending authority to include as eligible help alleviate the balance of payments sit­ collateral all of the direct obligations of Fed­ uation. Since that situation has not improved eral agencies, as well as obligations fully during the intervening years, the exemption guaranteed as to principal and interest by of foreign official deposits from interest rate such agencies. Since the Federal Reserve ceilings continues to be justified. In recent Banks are authorized by Public Law 89-597 amendments of their regulations, the Fed­ to purchase all such Federal agency obliga­ eral Reserve and the Federal Deposit Insur­ tions, we can see no reason why similar au­ ance Corporation have made clear their con­ thority should not be granted as to their use viction that in present circumstances foreign as collateral for advances by Reserve Banks official deposits should be free from interest to member banks. rate ceilings. As improvements in the inter­ The second amendment we propose would national payments position of the United broaden in similar fashion the types of col­ States are achieved, however, the special lateral authorized for Federal Reserve Bank treatment for foreign official deposits should loans to individuals, partnerships, and cor­ be kept under observation in order to make porations under the last paragraph of Sec­ sure that the discrimination involved is con­ tion 13 of the Federal Reserve Act. The col­ tinued only as long as it is needed. If Public lateral for such advances now may consist Law 89-597 becomes permanent law, the only of the direct obligations of the United Board will then have the authority to con­ States, and we propose to include also the tinue, modify, or terminate this exemption obligations of Federal agencies. This pro­ administratively in the light of changing vision of the Act is seldom used, but it could circumstances. provide important protection to the business The authority in Public Law 89-597 for community under highly unusual or emer­ Federal Reserve purchases and sales of gency conditions in financial markets. In agency issues in the open market should also June 1966, for example, we had made ar­ be made permanent. The objectives of this rangements for the possible extension of authority—to “increase the potential flexibil­ credit to mutual savings banks, savings and ity of open market transactions and . . . loan associations, and other depositary-type make these securities somewhat more attrac­ institutions under this authority, though tive to investors” (S. Rept. No. 1601, 89th none proved to be necessary. Permitting Cong., 2d session)— are long range, and such loans to be collateralized by Federal would be better served by eliminating un­ agency issues as well as by Treasury obliga­ certainty as to how long the authority may tions would give wider latitude in such con­ be exercised. tingency planning, and we can see no reason Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 611 why the types of assets made eligible for course, anxious to avoid a repetition of the collateral should not, in this instance also, experience in 1966 when the mortgage mar­ parallel the Reserve Banks’ purchase au­ ket became extremely tight. Just as monetary thority. policy should not be expected to carry too I have suggested reasons for making per­ much of the load of restraining an over­ manent the rate ceiling and open market au­ heated economy, so also housing should not thority in Public Law 89-597. The Board bear an undue share of the impact of mone­ believes also that the authority in that statute tary restraint. Yet both of these things hap­ to raise reserve requirements on time de­ pened in 1966. posits should be made permanent if it is to Last year the Board submitted a detailed be effectively exercised. Statutory expiration report to the Congress on the subject of dates confront the Board with the prospect monetary policy and the residential mort­ that if they should raise reserve requirements gage market. This report evaluated the effect on time deposits above 6 per cent, the action of monetary policy on the availability and might be automatically reversed, thereby re­ price of mortgage credit in 1966. In addi­ ducing reserve requirements, at a time when tion, the report set forth the Board’s recom­ such a reduction would have undesirable mendations for corrective action to promote consequences. greater cyclical stability in the flow of resi­ For your committee’s consideration, draft dential mortgage credit in the future. I amendments to carry out the Board’s recom­ would like to submit a copy of the Board’s mendations are attached at the end of my report for the record as a part of my testi­ statement. mony today. Let me turn now to another proposed As indicated in this report, the Board be­ amendment which has received some atten­ lieves that three broad guidelines are of tion recently, although it is not included in crucial importance in considering what ad­ H.R. 16092 or in the draft extension bill ditional institutional reforms should be as submitted to the Congress by the Secre­ adopted to promote greater cyclical stability tary of the Treasury. This proposal would in the flow of new commitments for residen­ broaden the System’s authority to purchase tial mortgages and in their direct and in­ obligations issued or guaranteed by Federal direct costs: agencies, so as to authorize such purchases First, a flexible fiscal policy should directly from the agencies, in addition to play a greater part than it did in 1966 the present authority to make such pur­ in acting, when needed, to restrain ag­ chases in the open market. It would also ex­ gregate economic activity. press the sense of Congress that the broad­ Second, the residential mortgage ened authority should be used “when alter­ market should be integrated closely native means cannot effectively be employed, with the general capital market, not to permit financial institutions to continue insulated from it. But at the same time, to supply reasonable amounts of funds to certain institutional changes should be the mortgage market during periods of mon­ made to enhance the ability of the resi­ etary stringency and rapidly rising interest dential mortgage market to compete rates.” prudently for the limited aggregate Both the Congress and the Board are, of supply of available credit. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN □ JULY 1968 Third, if special public measures ap­ cessive extensions of credit by the Federal pear warranted to ease the impact of Reserve, the Congress has carefully limited tightening general credit conditions on the authority of the System to purchase obli­ the availability or price of residential gations directly from the Treasury. Not only mortgage credit, such actions should be is there a statutory limit on the amount of taken without sacrificing the objectives such purchases, but the authority is tempo­ of monetary restraint. Moreover, the rary, subject to renewal by Congress every extent of the subsidy element involved 2 years, and the legislative history estab­ should be revealed clearly, and the sub­ lished in the course of numerous extensions stitution of public for private credit has repeatedly emphasized that the author­ should be minimized. ity is to be used sparingly, and only for ex­ tremely short periods. Thus Congress has A number of important steps have already sought to prevent Federal Reserve credit been taken at both Federal and State levels, from expanding to meet the Treasury’s needs in harmony with these guidelines, to assure for funds at the expense of over-all stabiliza­ a continued flow of private funds into mort­ tion goals, and the Treasury has never bor­ gages. A congressional directive to the Fed­ rowed more than $1.3 billion under the au­ eral Reserve System to attempt to support thority at any one time. Indeed, in the past the mortgage market by purchasing agency decade the authority has been used only five issues, however, could do the mortgage mar­ times, and then for no more than 3 days, ket more harm than good if, as seems likely, nor more than $207 million, at any one it involved a massive substitution of Federal time. Yet the current proposal for Federal Reserve funds for private funds. Reserve support of the mortgage market Such a directive would violate a funda­ seems to contemplate a tap on Federal Re­ mental principle of sound monetary policy, serve credit at below-market rates, unlimited in that it would attempt to use the credit­ as to time or amount. creating powers of the central bank to sub­ If the Federal Reserve were directed to sidize programs benefiting special sectors furnish several billion dollars to support the of the economy. There are, of course, legit­ mortgage market, the result would be to add imate grounds for concern about the mort­ that amount of dollars to bank reserves, gage market, just as there are many other which would in turn stimulate the banking areas in which Federal support programs system to expand money and credit by sev­ may be called for. But thus far the Congress eral times that amount. This would of course very wisely has refrained from attempting be inflationary unless some way could be to finance such programs through creation found to absorb these reserves. It has been of money by the central bank. At a time suggested that the inflationary impact of our when confidence in our ability to manage purchase of agency issues could be offset our financial affairs responsibly is being by sales of Treasury obligations out of the severely tested, we simply cannot afford to System’s portfolio. Such sales, in the volume create the impression that we are about to that would probably be necessary, would embark on a new support program to be fi­ seriously complicate the Treasury’s task of nanced in such a fashion. managing the public debt. The System Recognizing the dangers inherent in ex­ might then face the difficult choice of aban- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 613 doning the effort to support the mortgage same considerations leading Congress now market, or continuing it notwithstanding its to explore the feasibility of a Federal Re­ inflationary impact, or attempting to make serve subsidy for housing might be extended offsetting sales of Treasury obligations at later to other sectors of the economy affected the risk of disrupting the market for Treas­ by monetary restraint. ury securities. To try to influence flows of funds to the As spokesmen for home builders and residential mortgage market significantly at mortgage lenders have recognized, the flow times of severe credit squeeze, Federal Re­ of funds into mortgages can be improved by serve acquisitions of Federal home loan bringing the Federal deficit into more man­ bank or FNMA obligations would have to ageable proportions, thereby alleviating the be very large and concentrated within a few congestion in financial markets and easing months. There is no way to predict how large the pressures on interest rates. After a long such purchases would have to be. delay, legislation raising taxes and imposing Some idea of the possible order of mag­ expenditure controls has just been approved nitude that could be involved can be gained by Congress, and has already done much to by observing the course of residential mort­ reduce pressures in financial markets. Yet gage debt expansion in 1966. During that much of the benefit to be derived from this year, the seasonally adjusted annual rate of legislation could be undone by adoption of growth in outstanding nonfarm residential a directive for Federal Reserve support of mortgage credit declined from about $18.2 housing. In part, this is a matter of market billion in the first quarter to about $8.7 psychology. But it should be realized that billion in the fourth, according to the most in point of fact the proposed support pro­ recent estimates. A large share of this re­ gram would involve a large increase in the duction undoubtedly reflected a restricted amount of Treasury obligations the market supply of funds, following a period of un­ would have to absorb. Insofar as the impact usual abundance in 1965. This large decline on Treasury bill rates and the other market occurred despite a substantial increase in rates that reflect increases in the bill rate direct and indirect Federal support for the is concerned, it would make little difference residential mortgage market. Net purchases that the Federal Reserve System would be of residential mortgages by Federal agen­ selling the obligations from its portfolio cies—chiefly FNMA—totaled $3.9 billion rather than the Treasury marketing them during the first three quarters of 1966 at directly. seasonally adjusted annual rates, compared The resulting rise in market yields would with $1.0 billion in 1965. Loans from the obviously shift some of the impact of gen­ Federal home loan banks to member sav­ eral credit restraint onto other public and ings and loan associations rose at a $1.9 private nonmortgage borrowers, including billion seasonally adjusted annual rate in State and local governments and small busi­ those three quarters, in contrast with a net nesses other than builders. Costs of credit increase of $0.7 billion in 1965. Thus, the to such borrowers would escalate as the decline of about $9 billion in the annual amount of Federal Reserve assistance pro­ rate of residential mortgage debt expansion vided to the residential mortgage market occurred despite an increase of about $4 accelerated. It is thus conceivable that the billion at annual rates in direct and indirect Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN □ JULY 1968 Federal support to the residential mortgage types of diversified private lenders from ac­ market. quiring residential mortgages. Yields on An attempt to offset the effects of mone­ these mortgages, which would enjoy a rela­ tary restraints on residential construction tively sheltered market position, would rise during 1966, in other words, would have less than returns on other forms of invest­ required massive Federal Reserve support ments. As the yield spread favoring mort­ to the residential mortgage market. As a first gages declined, commercial banks, life in­ approximation, the amount of support could surance companies, and other types of pri­ have ranged up to $9 billion at annual rates. vate lenders would tend to shift funds away The actual volume of support would have from the residential mortgage market. The depended on what over-all flow of mortgage gap between the desired over-all flow of funds would be sought in order to maintain funds into mortgages and the amount sup­ amounts that were “reasonable,” as called plied from private sources would widen ac­ for by the proposal. cordingly. Additional Federal Reserve sup­ If the Federal Reserve sold Treasury bills port would then appear to be needed. More to offset purchases of this magnitude, bor­ public funds would consequently have to rowing costs would rise sharply for the be substituted for private funds. Treasury and for other nonmortgage bor­ Thus the proposal would attempt to rowers. We have recently seen how rapidly shelter one segment of the industry providing Treasury bill rates can climb merely under funds for financing residential construction the apprehension that financial markets and housing purchases—a segment com­ would be subject to considerable additional prised of savings and loan associations and future pressure. Following news that a $10 FNMA, which together ordinarily furnish billion tax bill might not be forthcoming, no more than half of total mortgage flows in the Treasury 3-month bill rate rose by 37 normal years. No comparable protection basis points in less than a month—from would be provided for other mortgage lend­ 5.55 per cent on April 29 of this year to ers, such as mutual savings banks and life 5.92 per cent on May 21. insurance companies, which could be ad­ Such upward interest rate pressures versely affected by the rise in market inter­ would, in turn, divert flows of savings from est rates. In attempting to provide support, the depositary institutions directly to the moreover, the program would accelerate market. This diversion would magnify the savings outflows from the very savings and effects of tight money on the availability of loan associations being assisted. To offset mortgage credit from nonbank intermed­ such outflows of private savings, the pro­ iaries. It would affect particularly adversely gram would endeavor to encourage these the savings and loan associations and mu­ same lenders to borrow increasing amounts tual savings banks that specialize in residen­ of public funds from the Federal home loan tial mortgage lending. Then additional Fed­ banks. This might conceivably lead to a need eral Reserve support operations would be for some relaxation of current Federal Home called for, in an effort to assure the “reason­ Loan Bank Board regulations, which now able” flow of funds required by the proposal, limit borrowings by member associations to with the same consequences. a fraction of their share capital. Pushed to Similar factors would discourage other the extreme, the proposed support operation Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 615 implies that some associations might even would confine Federal Reserve purchases come to hold more public than private funds to Federal home loan bank obligations. With —thus becoming large-scale brokers of Fed­ this one exception, however, the comments eral aid. offered in this statement apply equally to the It seems unlikely, however, that the typi­ current version of the proposal by Mr. cal savings and loan association would wish Reuss. to borrow public funds in such large volume As time progressed, the effects of the Fed­ to expand its new mortgage commitments at eral Reserve support operation would ad­ a time when it was losing savings accounts versely affect savings flows to aided as well on which it had relied for funds to honor its as to unaided mortgage lenders. At the same old loan commitments. Normally, only time, the operation would increase costs about half of the members of the Federal of funds to all nonmortgage borrowers. Ul­ Home Loan Bank System borrow from it. In timately, there would be little or no net in­ 1966, 51 per cent of all members did so, but crease in the over-all availability of resi­ principally to honor outstanding mortgage dential mortgage credit. There would be a commitments rather than to make new loan substantial substitution of public for private commitments. Therefore, even if the Fed­ funds. All this would occur at the expense eral Home Loan Bank Board revised its of possible disruption to other financial mar­ lending limits to permit members to borrow kets if not to the formulation and imple­ larger percentages of their share capital and mentation of general monetary policy as even if it invited borrowing for loan expan­ well. sion purposes, there is no assurance that Such a price, the Board feels strongly, member savings and loan associations would would be too high to pay for so few positive be eager to borrow for portfolio expansion results. Should the Congress decide that spe­ in quantities sufficient to offset reductions cial efforts are required in times of over-all in mortgage loans by other lenders. monetary restraint to supply additional Purchases of FNMA secondary-market funds to the residential mortgage market, debentures by the Federal Reserve might other approaches would, we believe, be less stimulate mortgage bankers to originate resi­ disruptive and more fruitful. Any such steps dential mortgages to be sold to FNMA. Such should, we suggest, be consistent with the a result, however, would do no more than broad guidelines mentioned earlier, and induce one Government-sponsored corpora­ should avoid altogether the use of Federal tion to expand its mortgage portfolio with Reserve support operations. And of course Government money at the same time that the basic aim should be to follow coordi­ private lenders with private savings were nated fiscal and monetary policy measures leaving the market. Moreover, FNMA can that will avoid congestion in financial mar­ acquire only Government-underwritten kets. mortgages. Such loans account for less than The Board welcomes passage of the com­ a third of all residential mortgages outstand­ bination of tax and expenditure control ing, and for probably an even smaller share measures agreed to by Congress. These fiscal of new residential mortgages being origi­ measures have already alleviated the pres­ nated. The latest version I have of the sures on financial markets. We hope that amendment being prepared by Mr. Reuss this tendency will persist, and that the better Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN □ JULY 1968 balance between supplies and demands for provide support for the mortgage market, we credit resulting from the fiscal actions will urge that they be designed in a fashion that begin to benefit the flows of funds into mort­ will reinforce—not offset—the benefits that gages. However, if the Congress should de­ should flow from this highly constructive termine that additional steps are needed to program of fiscal restraint. Amendments to Carry Out Federal Reserve Recommendations: 1. To make Public Law 89-597 perma­ eral reserve banks” and inserting “secured nent: Strike out Section 7 of that statute by such obligations as are eligible for re­ (H.R. 16092 as introduced amends Section discount or for purchase by Federal reserve 7 to extend expiration date). banks”. (b) Advances to individuals, partner­ 2. Collateral for advances by Federal Re­ ships, and corporations: Amend the first sen­ serve Banks: tence of the last paragraph of Section 13 of (a) Advances to member banks: Amend the Federal Reserve Act by inserting after the eighth paragraph of Section 13 of the “secured by direct obligations of the United Federal Reserve Act by striking out “se­ States” the following: “or by any obligation cured by such notes, drafts, bills of ex­ which is a direct obligation of, or fully guar­ change, or bankers’ acceptances as are elig­ anteed as to principal and interest by, any ible for rediscount or for purchase by Fed- agency of the United States”. Statement of William W. Sherrill, Member, and bond ratings on bank participation in Board of Governors of the Federal Reserve the tax-exempt market. System, before the Subcommittee on Eco­ nomic Progress of the Joint Economic Com­ COMMERCIAL BANKS AS A SOURCE OF mittee, July 10, 1968. FUNDS FOR STATE AND LOCAL SECURITIES In response to your invitation, I would like Among all the major financial institutions, to discuss four major points: commercial banks have the greatest incen­ 1. The importance of commercial banks tive to acquire tax-exempt State and local as investors in State and local obligations; bonds. Taking the entire period since the 2. The impact of varying credit condi­ end of World War II, commercial banks tions on State and local finance; have been the major provider of credit to 3. What can be done to lessen the sensi­ State and local governments, acquiring tivity of this sector to changing credit con­ about 45 per cent of the net increase in such ditions and generally improve the market obligations. The most rapid increase in bank for these obligations, and holdings of State and local bonds has oc­ 4. The influence of bank examinations curred since 1960. In part this acceleration Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 617 was due to enlarged time and savings deposit tary policy became more restrictive—banks inflows and a generally stimulative monetary cut back their rate of acquisitions of munic­ policy through most of the period. It re­ ipal bonds, acquiring an amount equal to flected also the fact that such securities con­ about 40 per cent of new issues. In 1967, stituted one of the more profitable uses dur­ as loan demands eased and monetary policy ing this period when business loan demands became more expansive, banks again accel­ were relatively modest. erated their purchases of State and local se­ From the end of 1960 to the end of 1965 curities, acquiring an amount equal to more banks allocated about 20 per cent of the than 80 per cent of that year’s new issues and growth in their earning assets to tax-exempt allocating one-fourth of their credit exten­ issues. Commercial banks increased their sions to these securities. holdings of State and local obligations from Year-to-year variations in bank participa­ 8 per cent to 12.5 per cent of their total tion in the municipal bond market, of loans and investments, and the share of all course, reflect both the shifting demands outstanding municipal bonds in bank port­ made upon the resources of commercial folios rose from 25.6 per cent to 38.5 per banks and changes in the availability of cent over these years. funds to them. Banks—like other lenders—■ make their investment decisions on the basis TABLE 1 of the available supply of funds and both COMMERCIAL BANK PARTICIPATION IN THE MARKET FOR STATE AND LOCAL GOVERNMENT long- and short-run considerations of busi­ SECURITIES ness strategy. Normally they prefer loans, where there is a long-run customer relation­ Change in holdings Amount of holdings ship, to investment in securities, where there In As per­ In As per­ Year billions centage of billions centage of usually is not, particularly when their funds of net new of total issues dollars issues dollars outstanding are in limited supply. Security investments are made partially 1950.......... 1.6 59.2 8.1 32.8 1951.......... 1. 1 57.8 9.2 33.8 to provide pools of liquidity and partially 1952.......... 1.0 38.4 10.2 34.1 1953.......... 0.6 16.2 10.8 31.6 for income. When the credit demands of 1954.......... 1.8 4.1 12.6 31.8 1955 .......... 0.1 3.1 12.7 28.3 loan customers rise, banks move to accom­ 1956.......... 0.2 6.7 12.9 26.1 1957 .......... 1.0 22.7 13.9 25.8 modate these demands by adjusting their se­ 1958 .......... 2.6 30.0 16.5 28.1 1959 .......... 0.4 8.9 17.0 26.7 curity portfolios. Thus, bank decisions to I960.......... 0.6 16.7 17.6 25.6 purchase and hold tax-exempt bonds are but 1961.......... 2.8 57.1 20.3 26.9 1962.......... 4.4 88.0 24.8 30.0 one component of their long-run investment 1963.......... 5.2 77.6 30.0 34. 1 1964......... 3.6 59.3 33.5 35.7 policy which must balance income and 1965.......... 5.1 67.6 38.6 38.5 liquidity with service to, and protection of, 1966.......... 2.4 40.0 41.0 39.2 1967.......... 8.5 82.5 49.5 42.2 their depositors. Source.—Board of Governors of the Federal Reserve System. During the 5-year period 1961 through VULNERABILITY OF STATE AND LOCAL FINANCES TO CREDIT AVAILABILITY 1965, commercial banks financed well over two-thirds of the net increase in State and State and local governments, along with local government obligations. But as busi­ other sectors of the economy, have experi­ ness and other bank customers stepped up enced higher costs of borrowing during the their credit demands in 1966—and mone­ past 3 years. These higher yields have been Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN □ JULY 1968 required even while banks were heavy pur­ time, the very sizable cutback of long-term chasers of State and local bonds in 1967. borrowing did not have a large immediate With large volumes of new debt coming to impact on the capital spending of large State market, issuers generally have had to attract and local governmental units. In 1966 re­ investors by raising yields. The higher cost duced or postponed contract awards and of borrowing appears particularly onerous spending on projects already under way to State and local governments since they amounted to only about $100 million. Ob­ finance about half of their capital outlays viously, the bulk of the shortfalls in long­ from the sale of bonds in the capital markets. term borrowing plans did not lead to reduc­ The Federal Reserve System has under­ tions in contract awards and spending. In taken studies of State and local financing about half the cases where there was no im­ experience on several occasions to deter­ pact on expenditures, governments had mine to what degree public bodies are forced planned to borrow well in advance of cash to alter their plans to borrow and to spend needs. In most of the remaining cases, out­ because of changing credit conditions and lays were kept on schedule by running down interest rates. liquid asset reserves or by borrowing short­ The most recent study focused on the year term—usually from commercial banks. 1966 when credit markets were experienc­ We have not completed tabulations of the ing a sustained escalation of rates. While the survey results for the smaller local govern­ survey results are not fully tabulated for the mental units, so I can only give approximate nearly 13,000 smaller governmental units information regarding their financing ex­ that were contacted, they are completed for perience. Preliminary analysis seems to in­ the 1,000 largest State and local govern­ dicate that about 360 of the 10,000 respond­ ments. I shall, therefore, focus my remarks ents abandoned or postponed long-term bor­ on these larger units. rowings that had been planned for 1966. Of the 983 large State and local units re­ Approximately 170 of these units reduced or plying to the survey, slightly over one-half postponed their 1966 borrowings because stated that they had planned to borrow long­ of high interest costs. In contrast to the ex­ term in 1966. About three-fourths of these perience of the large units, however, over carried out their plans fully as intended dur­ one-third of these units found it necessary ing that year. The remainder, however, al­ to cancel or reduce their contract awards in tered either the timing or the amount of those instances where high interest rates their borrowings, and 5 per cent of all re­ were at least a factor in the deferral of long­ spondents completely canceled their long­ term borrowing. While these results are only term borrowing plans for the year. In dollar tentative they do seem to indicate a much terms, long-term borrowings were cut back lower degree of financial flexibility on the or reduced by $1.4 billion, an amount equal part of these smaller units—fewer short-term to 22 per cent of the $6.2 billion that large alternatives are open to them if their long­ units actually borrowed in 1966. About 80 term financing plans go awry. They either per cent or $1.1 billion of the cutback was pay the higher costs of borrowing long-term due primarily to interest rate factors. or they drop the project until more favor­ Although the effects of borrowing changes able times. on expenditures may stretch out through While not minimizing the difficulties faced Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 619 by individual communities in canceling their ing of capital outlays exceedingly difficult. construction plans, I do wish to point to the However, units might time borrowings fact that the vast majority of State and local and construction so that they complement governments, both large and small, were able rather than compound the needs of other to go ahead as planned, either by paying sectors of the economy. By the same token, more for their long-term borrowings—as many might consider the advantages in the other borrowers were required to do—or by future of accelerating their capital outlay borrowing short-term or by dipping into programs during periods of economic slack their liquid assets. Evidently, most were to take double advantage of both lower bor­ reasonably successful in adjusting to finan­ rowing costs and the greater availability of cial pressures. construction resources. Besides advantageously adjusting their demand for credit and resources to the pres­ REDUCING THE VULNERABILITY OF STATE AND LOCAL FINANCES sures of the rest of the economy, State and local governments might also examine their With the 1966 borrowing survey as a back­ own policies and institutions for features ground, let us consider some of the actions which complicate their financing problems. State and local governments might take to We know that in 1966 units met with delays minimize the burdens of high interest rates and perhaps ultimately higher borrowing and reduced credit availability. costs because of interest rate limitations im­ First, it is important to remember the posed upon them by their own constitutions basic purpose of restrictive credit policies. or legislatures. Rigid interest rate ceilings They are meant to curtail total spending are but one of many legal obstacles which when limited resources are being sought too pervade the organization of State and local vigorously. State and local governments do governments. Debt and property tax limits not draw upon isolated pools of commodities that are overly restrictive either have sus­ and services. Each unit’s demands must be pended needed public improvements or have added to those of private enterprise, the Fed­ been avoided through the use of expensive eral Government, and other State and local alternative forms of financing such as the governments. Each competes for the bricks, revenue bond. State governments when mortar, and human skills that can build strapped by limitations on their indebtedness houses or office buildings as well as schools that have become outmoded often must pass and firehouses. Thus, it is necessary that the burden of borrowing onto their subdivi­ some marginal public projects, as in other sions, where it tends to be less secure and sectors, be deferred or stretched out during therefore more costly. periods of overheating in the general econ­ omy. Evidence indicates that borrowing costs One way State and local governments can are higher for smaller units, partially be­ avoid being squeezed in the financial mar­ cause they borrow in small amounts that are kets is for them to pay for more expenditures uneconomical to offer in the national mar­ out of current receipts. But these units, ket. While measures may be taken to im­ caught between pressing demands for public prove the competitive position of these small facilities and already heavy tax burdens, issues, they still represent a low-volume, would find prolonged pay-as-you-go financ­ high-cost-per-unit, form of borrowing. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

620 FEDERAL RESERVE BULLETIN □ JULY 1968 Some State governments have seen fit to State and local governments do not have to lend credit assistance to their local units by compete on the same basis with other issuers giving direct loans, guaranteeing local bor­ of debt obligations, the interest income from rowings, or through extending grants to help which is fully taxable. defray debt service. Others have made This implicit subsidy given to State and efforts to oversee their subdivisions’ borrow­ local governments has been less of a boon ing programs and to lend technical advice, to these governments in recent years as the thereby improving the marketability of local volume of new tax-exempt issues has ex­ obligations. Many States, aware that exces­ ceeded the volume of funds available from sive diffusion of local government responsi­ investors in the highest tax brackets. In bility and resources can be uneconomical in order, therefore, to attract additional invest­ ways other than the cost of borrowing, are ors to municipal bonds, tax-exempt yields encouraging consolidation of and coopera­ have had to rise relative to yields on taxable tion among local governments. securities to a point that makes them attrac­ None of these efforts, which State and tive to investors in lower and lower marginal local governments might accomplish for tax brackets. For example, over the last themselves, will insulate them from the bur­ decade it appears that investors in marginal dens of competing for limited funds in times tax brackets between 20 per cent and 30 per of financial strain. But such measures could cent have had to be drawn into this market help in marshaling their energies and re­ in order to meet the demands for funds by sources to plan ahead for and successfully State and local governments. cope with such times. The Federal Government might also assist TABLE 2 in alleviating State and local borrowing diffi­ YIELDS ON COMPARABLE MUNICIPAL AND CORPORATE BONDS AND MARGINAL INCOME culties. For example, legislation to permit TAX RATE GIVING EQUIVALENT AFTER-TAX YIELDS, commercial bank underwriting of revenue 1950—67 (In per cent) bonds could improve the competition in the Annual average yield 1 municipal bond market and might lower Equivalent 2 yield tax slightly the borrowing costs of such issues. Municipal Corporate bracket bonds bonds 1-0 - Kl)/(2)] Such legislation is supported by the Board (2) of Governors, as Governor Mitchell testified 1950....................... 1,56 2.62 40 1951..................... 1.61 2.86 44 before the Senate Subcommittee on Finan­ 1952....................... 1.80 2.96 39 1953... ................. 2.31 3.20 28 cial Institutions last August. 1954....................... 2.04 2.90 30 Borrowing costs on municipal bonds are 1955..................... 2.18 3.06 29 1956...................... 2.51 3.36 25 already much lower than they otherwise 1957....................... 3.10 3.89 20 1958....................... 2.92 3.79 23 1959....................... 3.35 4.38 24 would be because of the exemption of their 1960....................... 3.26 4.41 26 interest from Federal income taxes. This 1961....................... 3.27 4.35 25 1962....................... 3.03 4.33 30 feature makes these securities most attrac­ 1963....................... 3.06 4.26 28 1964..................... 3.09 4.40 30 tive to those investors in the higher tax 1965....................... 3.16 4,49 30 brackets—like high income individuals, as 1966....................... 3.67 5.13 28 1967....................... 3,74 5.51 32 well as to the more heavily taxed financial 1 Moody’s Investor Service, Aaa, long-term bonds. institutions, such as commercial banks and 2 Investors in the calculated marginal income tax bracket earn the same after-tax yield on municipal and corporate bonds of comparable fire and casualty insurance companies. Thus quality. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 621 Calculations by the U.S. Treasury and ket is more than half again that of borrow­ others indicate that the tax revenues fore­ ing in the tax-exempt market, they will find gone because of the present tax-exemption it most economical on a net-cost basis to of the interest income of State and local ob­ borrow in the former and forget the subsidy. ligations considerably exceed the interest On the other hand, should the ratio of the cost savings enjoyed by these units. This has tax-exempt to taxable bond yields rise above prompted suggestions that the interest in­ .67, governments will find it less expensive come from municipal bonds be made fully to issue taxable bonds and take the subsidy. taxable. Since such obligations no doubt Those investors above approximately a would carry higher yields than is today the 33 per cent marginal income tax bracket case, it has been suggested further that the would still find it advantageous to hold tax­ increase in the cost of borrowing be offset exempt bonds so long as the ratio of yields on by a subsidy from the Federal Government. tax-exempts to alternative taxable securities The extent to which such a subsidy plan remains at or above .67. On an after-tax might lower the net cost of borrowing for basis they will be earning more on the tax­ State and local governments and increase the free income than if they had invested an revenues of the Treasury depends directly on equivalent amount in similar obligations the its design. And it must be recognized that interest income of which is taxable. the demands of investors in particular are Generally speaking, the ratio of yields on fluid and that their portfolios are flexible as tax-exempt and taxable bonds in the market they pursue their investment objectives. will depend on the demand for and supply Therefore, any calculation of future tax of existing stocks of obligations. The change revenues gained and subsidy payments need­ in the stock of tax-exempt bonds will be ed if State and local securities were to be determined in part by the decisions of the made taxable depends on a wide range of issuing authorities between tax-exempt and variables including the way in which mar­ taxable securities. As long as the total out­ kets adjust ultimately to the changed capital standing stock of tax-exempts exceeds the market environment. holdings desired by investors in the greater Bills recently introduced by Representa­ than 33 per cent marginal tax-bracket, the tive Patman, H.R. 15991, and Senator Prox- ratio of yields will exceed .67. But over time mire, S. 3170, propose that the Federal there will be a downward pressure on the Government subsidize 33 per cent of the in­ ratio of yields. Communities will issue tax­ terest cost on State and local obligations that able securities and take the subsidy, and in­ voluntarily give up their tax-exempt status. vestors will bid up the prices for outstand­ Issuing governments would therefore be free ing tax-exempt bonds as the supply of new to choose between issuing their securities tax-exempt issues tapers off. The ratio of on a tax-exempt basis as they now do, or tax-exempt to taxable yields will most likely issuing them on a taxable basis and receiv­ tend to settled down to approximately .67. ing the subsidy. Governments will choose the This is a problem in dynamic adjustment— alternative that is cheapest for them after it would take time to work itself out and comparing the interest cost of issuing their just how long it would take, I do not know. securities under the two alternatives. Clearly, Channeling all or part of the new issues if the cost of borrowing in the taxable mar­ of State and local obligations into the tax- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

622 FEDERAL RESERVE BULLETIN □ JULY 1968 able bond market will of course broaden the plies that governments with relatively range of investor groups potentially attract­ stronger credit positions will, in part, carry ed to State and local obligations. However, those with weaker credit standing. And the it is not without cost in terms of the subsidy Federal Government would be assuming a paid by the Federal Government. And it large contingent liability, to the extent that should be realized that additional Federal the fund built up by the fees does not grow income tax revenues caused by investors so rapidly as the liability. shifting into taxable assets might not meet the full cost of such a subsidy, no matter TABLE 3 what the extent of its use. INTEREST RATES AND SPREADS BETWEEN PUBLIC HOUSING AUTHORITY AND MUNICIPAL Taking the 33 per cent subsidy plan, as SECURITIES, 1962-67 I have just mentioned, investors in the (Annual averages, in per cent) ' greater than 33 per cent marginal income 33- to 40-year 30-year, “good Interest rate tax bracket probably will stay in the tax­ Year PHA securities grade” municipal spread (1) (2) (2)-(D exempt market. Most investors below that 1962............ 3.18 3.42 0.24 tax bracket—as the ratio of tax-exempt to 1963 ........... 3.11 3.36 0.25 1964............ 3.33 3.48 0.15 taxable bond yields falls—will shift into 1965........... 3.31 3.45 0.14 1966............ 3.74 3.99 0.25 taxable investments. But the additional tax 1967............ 3.89 4.15 0.26 Average, payments they make to the Treasury would 1962-671 3.45 0,21 tend to return less than the added expense i Figure is an average for all observations of given issues. of the 33 per cent subsidy. That is, it will Source.—U.S. Department of Housing and Urban Development; Salomon Brothers & Hutzler, An Analytical Record of Yields and cost 33 cents for every dollar’s worth of in­ Yield Scales, Part II. vestment income shifted into a taxable cate­ It is not clear what the value of such a gory; but the investors most likely to make guarantee would be to issuers. The experi­ such a shift will be those who' on the average ence of Public Housing Authority obliga­ pay less than 33 cents in taxes on each addi­ tions indicates that such a Federal guarantee tional dollar of interest income. reduces the yield demanded by investors by Another proposed form of Federal Gov­ perhaps 20 basis points on the average. ernment assistance is the guaranteeing of Whether this would still be the benefit for debt service on State and local obligations guaranteed securities is problematic. Smaller to be financed by insurance fees. Such a pro­ and lower or unrated issues would probably posal would virtually eliminate the default be benefited the most. However, it should risk to investors on insured obligations, be pointed out in passing that increasing the make them homogeneous in terms of invest­ supply of Federally guaranteed issues would ment quality (thus eliminating the need for no doubt expand the competition for funds individual bond ratings for such securities), for certain forms of Federal borrowing, thus and would enhance their marketability. tending to increase their interest costs. These may be desirable objectives, but they As in the proposals of Representative Pat­ are not costless. Fees must be collected to man and Senator Proxmire, interest subsi­ provide for the contingency that some issues dies and guarantees could be used in tan­ may default. If the insurance fees are pro­ dem. The ultimate cost and benefits of a portionately the same for all issues irrespec­ combined program depend jointly on how tive of their intrinsic quality, then this im­ such securities are accepted into investor Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 623 portfolios as well as on the extent of their of particular issues. Banks are asked to stand utilization by governmental units. I cannot ready to review their reasons for selection predict with certainty what the final outcome of specific holdings if there is any doubt of would be. their creditworthiness—regardless of any But on balance, it appears that the cur­ bond rating. rent proposals would not constitute a reve­ The information needed to document the nue bonanza for the Treasury. Indeed, they creditworthiness of a particular bond issue probably would entail a net cost to the Fed­ —relating to such factors as taxes and re­ eral Government, both through the cost of ceipts, trends in outstanding debt, tax base, the subsidies as well as in higher direct bor­ and population—are matters of public rec­ rowing costs, since guaranteed taxable State ord and are readily available. It is the type and local obligations would be more com­ of information basic to the bank’s having petitive with U.S. Government and Federal made an informed and rational investment agency issues. Such a program of Federal in the first place. It is the type of informa­ assistance most likely would lower the costs tion always given in bond prospectuses, and of borrowing for State and local govern­ is generally available from dealers selling ments, both through direct payment of the bonds to the bank. Additionally, many of subsidy, and indirectly by relieving the vol­ the holdings of the smaller banks are the ume of borrowing in the tax-exempt market. obligations of their own local governments But it is not at all clear to me that the bene­ or those of the surrounding communities, fits for the State and local units would be as whose finances they should know well. large as the costs to the Federal Govern­ It is possible, as has been suggested, that ment. factual data reports prepared by a Federal agency might be useful to investors and, BANK EXAMINATIONS AND COMMERCIAL therefore, might improve the marketability BANK HOLDINGS OF STATE AND LOCAL OBLIGATIONS of very small issues. But we feel that much of the data used in reaching investment judg­ In concluding this statement I would like to ments is already available to prospective in­ make a few remarks on bank examinations vestors. and their effect on the portfolios of the It has been the experience of our exam­ smaller commercial banks. iners that the number of cases where bank The broad objective of bank supervision holdings of State and local obligations have is the maintenance of a sound banking sys­ been criticized—whether they have been tem. An important part of bank supervision nationally rated or not—has been infinitesi­ is the examination of bank portfolios which mal. According to the latest data we have are undertaken for the purpose of protecting the individual depositors and the banking (for 1966) less than .01 per cent—one ten­ thousandth—of the total dollar amount of system at large from unwise extensions of credit. In the course of these examinations member bank “other security” holdings (made up predominately of municipal of loan and investment portfolios, the regu­ latory agencies are concerned with apprais­ bonds) were classified as being below invest­ ing the general solvency of bank earning ment quality. assets, including the obligations of State and I think that the best evidence that exam­ local units, and not with rating the quality ination procedures and quality of investment Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

624 FEDERAL RESERVE BULLETIN □ JULY 1968 requirements have not deterred commercial ployed by the Federal Reserve and the banks from investing in State and local ob­ Comptroller of the Currency. We have no ligations, especially those of a small and un­ reason to believe that results for member rated nature, is found in the magnitude of banks would be substantially different. their holdings of these securities. In this re­ The point I wish to call to your attention spect, the results of a recent survey of the is that on the average these banks held a State and local obligations held by insured high percentage—about 30 per cent—of nonmember banks during the period 1960­ their State and local obligations in the un­ 64 are helpful. These banks are regularly rated category. At the outside, during the 5-year period 1957-62, unrated bonds ac­ counted for about one-third to one-fourth TABLE 4 of the dollar volume of all tax-exempt issues HOLDINGS OF STATE AND LOCAL GOVERNMENT SECURITIES BY INSURED NONMEMBER —general obligations and revenues. More­ COMMERCIAL BANKS, 1960-64 over, the smaller the bank, the higher, on Period, or bank size Total holdings Unrated issues the average, was its percentage holdings of (total assets in (in millions of as percentage of millions of dollars) dollars) total holdings the unrated issues. Holdings in the unrated category amounted to well over one-half of I960............................ 2,881 31.7 1961............................ 2,912 31.5 all State and local issues for banks with de­ 1962............................ 3,158 30.3 1963............................ 3,466 29.2 posits of less than $5 million. This seems to 1964: All sizes................. 4,009 28.1 Under 1................. 11 63.8 indicate that far from being regulated away 1-2....................... 89 61.8 2-5 .......................... 559 50.8 from the unrated market, smaller banks 5-10........................ 848 36.7 10 and over. .......... 2,502 18.8 have taken a very strong interest in these securities. Note.—-Figures are based on tabulations from examination reports of the Federal Deposit Insurance Corporation. This, of course, is to be expected. The local bank is aware of local needs and con­ examined by the FDIC using procedures ditions and its stake in the community. It is which, under the various uniform examina­ the traditional source of credit for small bor­ tion agreements, are the same as those em­ rowers, both private and public. Statement of Andrew F. Brimmer, Member, voting their own stock, and (2) require that Board of Governors of the Federal Reserve such banks conduct their elections for direc­ System, before the Committee on Banking tors on the basis of cumulative voting by and Currency, House of Representatives, on shareholders. H.R. 13884, to prohibit Federally insured banks from voting their own stock and to BANK VOTING OF OWN STOCK provide for cumulative voting in Federally The Board recognizes that inherent in a bank insured banks, July 17, 1968. voting its own stock is a potential conflict between the self-interest of the bank’s man­ H.R. 13884 is designed to do two things: agement and the best interests of its share­ (1) prohibit Federally insured banks from holders. As the Board has earlier indicated Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 625 to this Committee, it considers the practice holdings of stock in competing commercial of a bank’s voting its own stock held by it in banks, which would aggravate another situ­ trust “undesirable and has tried by persua­ ation that may already have undesirable sion to encourage State member banks to aspects. eliminate, as far as possible, voting of such Certainly, prohibiting a bank from own­ stock except by direction or instruction from ing its own stock in any capacity would pre­ others.” (1967 Hearings entitled “Meetings vent a person with full knowledge of the with Department and Agency Officials,” facts from establishing with a bank a trust page 172.) that expressly authorizes the purchase of In attempting to develop an appropriate stock of the bank. On balance, the Board of legislative line between what is to be pro­ Governors believes that it would be desirable hibited and what is to remain permissible, it to allow such a person to establish a trust always seems desirable to use existing laws in authorizing the purchase of stock of the the area as a framework for consideration. bank, despite the possibility that a bank Under Section 5144 of the Revised Statutes, could take advantage of its role as financial in an election of directors a national bank is adviser and suggest the merits of including permitted to vote stock held by it as sole such a provision in the trust agreement. trustee only if “under the terms of the trust It might be noted that, as a practical mat­ the manner in which such shares shall be ter, prohibiting a bank from voting its own voted may be determined by a donor or bene­ stock—which is the approach adopted by ficiary of the trust and . . . such donor or H.R. 13884—may strongly discourage own­ beneficiary actually directs how such ership of such stock and thus have some of shares shall be voted.” That Section also pro­ the effect of a prohibition against owner­ vides that, if the bank owns such stock as ship. Voting of stock is an attribute of own­ co-trustee, the other trustee may vote the ership, and a trustee, depending upon the stock as if he were the sole trustee. terms of the trust instrument, might be con­ A question arises whether the best solu­ sidered negligent in the performance of his tion to the problems involved in this area duties if he invested in stock in which he might be to prohibit a bank from holding its could not exercise the normal incidents of own stock in any capacity. That would en­ ownership. tirely avoid any potential conflict and would Returning to Section 5144 of the Revised also avoid denying certain owners voting Statutes, from the standpoint of the beneficial rights—which results from permitting banks owners of the stock, the existing provisions to hold their own stock in a fiduciary ca­ of that Section assure that such owners will pacity but not to vote it. not be deprived of having basic ownership Prohibiting a bank from owning its own rights exercised in their behalf. The Board stock would be a simple solution to the prob­ is unaware of any harmful consequences re­ lems in this area but one that may be more sulting from these provisions, although, to drastic than is necessary. It might deprive the extent that owners are denied voting the trustee of the opportunity of making a rights, the value of such rights of the re­ sound investment on behalf of the beneficiary maining owners is proportionately increased. of the trust. Conceivably, it might encourage In sum, it seems to the Board that the need bank trust departments to increase their for legislation in this area at this time would Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

626 FEDERAL RESERVE BULLETIN □ JULY 1968 be fulfilled if State banks were subject to aware of the undesirable aspects of the limitations comparable to those of Section Cleveland Trust situation. While it encour­ 5144. Accordingly, the Board suggests that ages banks under its supervision to dispose consideration should be given to modifying of their own stock held by them in a fiduciary the apparently unqualified prohibition in capacity, the Board is reluctant to engage in H.R. 13884 against an insured bank exer­ interpreting closely-disputed questions of cising voting rights of its capital stock to State law. In other words, the Board con­ make clear that the stock of any such bank siders that its supervisory responsibilities in held by it in a fiduciary capacity may be this respect relate principally to assuring voted in the ways presently authorized by that the soundness of the bank and its trust Section 5144 of the Revised Statutes. accounts are not adversely affected by the in­ Before turning to the cumulative voting vestments in the bank’s own stock. provisions of H.R. 13884, let me comment Where a bank such as Cleveland Trust is briefly regarding one of the situations to subject to the Board’s Regulation F, which which the prohibition against a bank voting relates to public disclosure of information its own stock is addressed. As this Commit­ concerning stock of certain member State tee’s recent report on trust activities of banks banks, the Board has the duty to assure that points out, the Cleveland Trust Company, the bank fairly discloses all information nec­ an Ohio-chartered member bank of the Fed­ essary to enable an investor to make an in­ eral Reserve System, owns in a fiduciary ca­ telligent decision with respect to ownership pacity approximately 33 per cent of the out­ of the bank’s stock. The Board believes that standing stock of the bank and, despite much it fulfills this duty with respect to the stock adverse criticism, continues to vote much of of the Cleveland Trust Company, as well as such stock. Through such voting, the man­ with respect to the stock of other banks agement of the bank effectively controls the within its jurisdiction. election of its board of directors. At the present time the legality of the CUMULATIVE VOTING Cleveland Trust Company voting its own The general aim of cumulative voting is to stock is solely a question of Ohio law. In an allow a minority to secure representation on effort to clarify its authority in this respect, the board of directors. Under such method the bank itself initiated a suit for declaratory of voting, where several directors are to be judgment. In June 1967 the Common Pleas voted upon at the same time, a shareholder Court of Cuyahoga County held against the is entitled, if he desires, to cast votes equal bank, concluding that “no corporate fiduci­ to the whole number of shares held by him, ary is permitted to vote any shares issued by multiplied by the number of directors to be it under the existing statutory law of Ohio.” elected, for one candidate. The bank is appealing this decision. The danger in this method of voting is that As a member bank of the Federal Reserve an unwary majority may find that a vigilant System, Cleveland Trust Company is, of minority has deprived the majority of con­ course, subject to supervision by the Board trol. This could arise by the majority spread­ of Governors. On occasion, the Chairman of ing their votes over too many offices. How­ this Committee has suggested that the Board ever, this danger can be overcome by the should investigate the bank’s practice of vot­ majority foregoing any attempt to elect a ing its own stock. The Board has been and is complete board and cumulating their votes Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 627 on such a proportion of the members of the the community. Many such shares are owned board as the number of their shares bears to by outside investors. Nevertheless we do the total number of shares which will be hope and believe that there is sufficient stock voted at the election. ownership of the local bank by persons inter­ The question of whether bank share­ ested in the community that we should reject holders should have cumulative voting rights such arguments against cumulative voting as is controversial. In fact, in 1956, the Senate “If you don’t like the policies of the corpora­ passed a bill that would have modified the tion, sell your stock.” present requirement for cumulative voting in We are well aware of the danger from elections of directors of national banks so “mandatory” cumulative voting of a minority that such method of voting would apply only of shareholders impairing corporate action. if the bank’s articles of association so pro­ However, an unchallenged management is vided. A similar modification was considered more likely to be unresponsive to the needs in connection with the proposed “Financial of the community. On balance, the Board Institutions Act of 1957.” considers that the dangers of dissidence are Much of the debate on the merits of cumu­ outweighed by the advantages of an airing lative voting centers around the question of of viewpoints. what should be the proper role of a board of To be effective, cumulative voting for di­ directors. Some argue that a board of direc­ rectors requires on the part of shareholders tors should be similar to the cabinet in the accurate and detailed knowledge of the government of the United Kingdom—all strength of the competing interests, their representing the same interests involved in a strategies, and candidates. This could be common effort to ascertain and administer cited as a danger of cumulative voting, but effectively the policies of the corporation. belief in and reliance upon an intelligent and Others say that a board of directors should informed electorate is the basis of democ­ be similar to a legislature—-policies should racy, either corporate or political. be questioned and debated by persons repre­ It might be noted that, in the past, regula­ senting diverse interests. tion of State banks under Federal banking Insofar as banking is concerned, it seems laws has generally been directed toward as­ particularly desirable that the board of di­ suring the soundness of such banks, rather rectors should serve more like a legislature. than toward protecting the interests of share­ The Board believes—and we think this has holders of banks, as H.R. 13884 would do. been borne out in both Federal and State Nevertheless, State-chartered banks have legislation—that a bank must consider and been made subject to a number of the pro­ act to a greater degree with regard to the visions of the Federal securities laws, includ­ public interest than the typical industrial or ing those directed against insiders taking un­ commercial corporation. Banks should be fair advantage of their position—one of the responsive to the convenience and needs of principal purposes of H.R. 13884. their communities. Accordingly, efficiency in In conclusion, the Board of Governors the decision-making process and the maxi­ supports the objectives of H.R. 13884. How­ mization of profits must, on occasion, play a ever, it would favor a provision limiting an secondary role to community service. insured bank voting its own stock held by Certainly not all of the stock even of a it in a fiduciary capacity more along the lines local bank is owned by persons interested in of Section 5144 of the Revised Statutes. 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 released approximately 90 days following the date of the meeting and are subsequently 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 were published in the Bulletins for July 1967 through March 1968. ' Records for the first four meetings held in 1968 were published in the Bulletins for April, pages 372-81, May, pages 431-36, and June, pages 482-96. The records for the meetings held on April 2, and April 19, 1968, follow: 628 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 629 MEETING HELD ON APRIL 2, 1968 1. Authority to effect transactions in System Account. The domestic economic situation continued to be characterized by substantial increases in over-all activity and prices. Real GNP was estimated to have grown rapidly in the first quarter and an­ other large rise appeared in prospect for the second quarter. From the preceding autumn, average prices of industrial com­ modities had advanced through March at an annual rate of about 4.5 per cent, and average consumer prices had risen through February at a rate of nearly 4 per cent. The outlook was for persisting inflationary pressures in the period ahead. Industrial production was little changed in February; but ac­ cording to tentative estimates, it had increased moderately in March. Nonfarm employment rose sharply in February, but the labor force also expanded markedly and the unemployment rate increased to 3.7 per cent from 3.5 per cent in January. Weekly retail sales figures for early March suggested that the sharp resurgence of consumer expenditures, under way since the begin­ ning of the year, was continuing. Consumer spending was expected to increase considerably further in the second quarter, even if a tax increase were enacted, because of the prospective rapid gains in income. In addition, defense outlays were running substantially above the levels that had been anticipated earlier, as had been noted by the President in the March 31 address in which he announced the de-escalation of bombing in North Vietnam. The President also indicated that estimates of defense expenditures in the fiscal year 1969 had been revised upward. Apart from the consumer and defense categories, changes in activity in broad economic sectors were expected to be relatively moderate in the second quarter. It appeared likely that residential construction activity, which had risen slightly in the first quarter, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE BULLETIN □ JULY 1968 would change little further. Some increase in the rate of business inventory investment was anticipated, following an apparent slow­ ing in accumulation in the first quarter. On the other hand, growth in fixed investment was expected to level off after a sub­ stantial rise in the early months of the year. For 1968 as a whole businesses planned to increase their spending on new plant and equipment by 6 per cent, according to a recent Commerce-SEC survey, compared with a rise in actual outlays of 2 per cent in 1967. The survey indicated that capital spending would increase moderately from the first to the second half of 1968. Uncertainties continued in the markets for gold and foreign exchange, but the heavy speculative activity of early March abated following the agreement on gold policy reached at the midmonth meeting of gold pool members in Washington. Specu­ lation slackened further after the March 19 announcement by the British Government of a broad program designed to restrict growth of consumer incomes and spending, and after agreement was reached regarding special drawing rights (SDR’s) in the International Monetary Fund at the month-end meeting in Stockholm of major industrial countries comprising the “Group of Ten.” On March 21 the Bank of England lowered its discount rate from 8 to 714 per cent. Gold holdings of the U.S. Treasury were reduced in March by $1.4 billion, largely as a result of settlement of the U.S. share of sales by the gold pool before operations of the pool were discontinued at midmonth and of sales to foreign central banks. Incomplete data on the U.S. balance of payments in the first quarter suggested that the deficit was large on both the liquidity and official settlements bases of calculation, although not so large on either basis as in the fourth quarter of 1967. There had been improvement in flows in some important elements of the capital account, but the surplus on merchandise trade apparently had remained near the low level to which it had fallen in the preceding quarter. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 631 System open market operations in early March—between the meetings of the Committee held on March 5 and March 14—had been directed at achieving somewhat firmer conditions in the money market. Subsequently, operations were directed at con­ firming the still more restrictive monetary policy signaled by the midmonth increase in the discount rate from 4*/2 to 5 per cent, while maintaining orderly market conditions. In the last two statement weeks of March net borrowed reserves averaged about $370 million, compared with averages of about $240 million in the first half of the month and of about $90 million in the last half of February. The Federal funds rate moved up to a range around 5 per cent before mid-March and then ad­ vanced to a range around 5^ per cent. Interest rates on most types of market securities fluctuated widely during March but rose on balance. These rate develop­ ments reflected events relating to gold, shifts in sentiment regard­ ing prospects for Vietnam peace negotiations and for domestic fiscal action, and the firming of monetary policy. Yields on Treas­ ury securities of all maturities rose sharply until midmonth, when uncertainties in international financial markets were most in­ tense, and subsequently declined somewhat. The swing in the market rate on 3-month Treasury bills was particularly marked; from an early-March level of close to 5 per cent, the rate rose to a peak of 5.45 per cent on March 14 and then fell irregularly to 5.13 per cent on April 1, the day before this meeting. Most other short-term market interest rates were considerably higher on April 1 than they had been 4 weeks earlier, and there had been sizable net increases in yields on long-term corporate and municipal securities. Growth in bank credit slowed considerably in March, a month in which the Treasury undertook no major financing operations. The bank credit proxy—daily-average member bank deposits— was estimated to have expanded at an annual rate of about 4 per cent, compared with 10 per cent in February. Outstanding busi- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN □ JULY 1968 ness loans at banks increased somewhat, but security loans and holdings of Government securities declined substantially. With short-term interest rates rising on balance, by mid-March banks were generally offering the ceiling rate of 5*/2 per cent on large-denomination CD’s of all maturities; earlier, the offering rate for shorter-term certificates had been below the ceiling. Nevertheless, banks experienced a substantial decline in out­ standing CD’s during March. The pace of growth in consumer­ type time and savings deposits increased somewhat, however, and total time and savings deposits rose slightly more in March than in the preceding month. Government deposits declined, and private demand deposits increased by a relatively small amount. The money supply grew at a faster rate than in February, with more than half of the expansion reflecting an increase in currency holdings of the public. In the 4 months through March, time and savings deposits and the money supply had grown at annual rates of about 6.5 and 3.5 per cent, respectively, and the bank credit proxy at a rate of about 5.5 per cent—in each case less than half the rate of the preceding 7 months. Inflows of funds to savings and loan associations and mutual savings banks also had been substantially curtailed in recent months. Bank credit was projected to change little in April and to expand moderately in May—on the assumptions that the Treas­ ury would raise a substantial volume of new cash in connection with its May refunding but would not undertake a major financ­ ing earlier, and that money market conditions would remain un­ changed. In an alternative projection, in which a slight firming of money market conditions was assumed, the annual rate of change in the bank credit proxy in April was estimated in a range of +1 to —3 per cent. It was expected that at the currently higher levels of market interest rates banks would find it more difficult in April to attract consumer-type time and savings deposits and that the banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 633 would experience a further run-off of CD’s of greater than sea­ sonal dimensions. As a result, total time and savings deposits were projected to expand at a relatively low rate in April. On the other hand, growth in the money supply was expected to be more rapid than in March, largely as a consequence of a sizable de­ cline anticipated in Government deposits. The Committee agreed that continued firming of monetary policy was desirable in light of present and prospective inflation­ ary pressures, the highly unfavorable developments of recent months in U.S. foreign trade, the persisting uncertainties in inter­ national financial markets, and the still uncertain outlook for fiscal action. Some members expressed the view that circum­ stances might soon require consideration by the System of a further increase in the discount rate. At the same time, various reasons were advanced for moving cautiously in firming further through open market operations at present. These included some improvement in prospects for restrictive fiscal action by Congress; it appeared likely that the Senate would take affirmative action shortly on a measure provid­ ing for an increase in taxes and a reduction in budgeted Federal expenditures. In addition, it was noted that a considerable degree of monetary restraint had already been achieved, the effects of which were still unfolding, and that there had been insufficient time as yet to determine the economic implications of various recent events, including the de-escalation of bombing in North Vietnam. It also was noted that a marked further firming of monetary policy at this time might have undesirably large adverse effects on flows of funds to financial intermediaries. In this connection, some members foresaw a possible need at a later point for the Board to raise ceiling rates on large-denomina­ tion CD’s, although none indicated that he thought such action was desirable immediately. At the conclusion of the discussion the Committee agreed that slightly firmer money market conditions should be sought, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

634 FEDERAL RESERVE BULLETIN □ JULY 1968 but that operations should be modified if unusual liquidity pres­ sures developed or if the change in bank credit appeared to be deviating significantly in either direction from the projection. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that over-all eco­ nomic activity has expanded at a very rapid pace in early 1968, with prices rising substantially, and that prospects are for a continuing rapid advance in activity and persisting inflationary pressures in the period ahead. Since late fall, growth rates of bank credit, the money supply, and time and savings accounts at financial institutions have moderated con­ siderably. Speculative activity in gold and foreign exchange markets, which was intense in early March, abated after the midmonth agreement on gold policy by gold pool members and appears to have slackened fur­ ther following the Stockholm agreement regarding Special Drawing Rights. The foreign trade surplus, however, has remained at a sharply re­ duced level in recent months and the imbalance in U.S. international pay­ ments continues to be a matter of serious concern. Most market interest rates have fluctuated widely, although rising on balance, in reaction to international financial developments, the firming of monetary policy, and uncertainties regarding military and fiscal prospects. In this situation, it is the policy of the Federal Open Market Committee to foster financial con­ ditions conducive to resistance of inflationary pressures and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to attaining slightly firmer conditions in the money market; provided, however, that operations shall be modified if bank credit appears to be deviating sig­ nificantly from current projections or if unusual liquidity pressures should develop. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, and Sherrill. Votes against this action: None. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 635 2. Ratification of amendments to authorization for System foreign currency operations. At this meeting the Committee ratified the actions taken by members on March 16 and 17, relating to the System’s swap arrangements with the German Federal Bank and the Bank of England. As indicated in the policy record for March 14, 1968, the members authorized the Special Manager to undertake nego­ tiations looking toward increases of $250 million equivalent and $500 million equivalent, respectively, in the two arrangements, on the understanding that any such increases and the correspond­ ing amendments to paragraph 2 of the authorization for System foreign currency operations would become effective upon a determination by Chairman Martin that they were in the national interest. The Chairman made such a determination on March 17, 1968. Votes for ratification of these actions: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, and Sherrill. Votes against ratification of these ac­ tions: None. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

636 FEDERAL RESERVE BULLETIN □ JULY 1968 MEETING HELD ON APRIL 19, 1968 Authority to effect transactions in System Account. On the day before this meeting, the Board of Governors of the Federal Reserve System had approved an increase in Federal Reserve Bank discount rates from 5 to 5‘/2 per cent and had raised the maximum rates payable by member banks on new large-denomination CD’s having maturities of 60 days or more.1 Both actions were effective on the day of this meeting. Following the announcement of these actions, interest rates advanced in domestic financial markets—with the market rate on 3-month Treasury bills rising about 20 basis points to around 5.55 per cent—and in foreign exchange markets the dollar strengthened against most currencies. The purpose of today’s meeting, which was held by telephone, was to consider the need for revision of the Committee’s current economic policy directive in light of yesterday’s actions. The Committee agreed that open market operations in the interval until its next scheduled meeting should be directed at achieving firmer money market conditions in keeping with the higher discount rate, while facilitating orderly market adjust­ ments to the increase in that rate. The following current eco­ nomic policy directive was issued to the Federal Reserve Bank of New York: 1 By amendment to Regulation Q the following schedule of maximum rates payable by member banks on CD’s of $100,000 or more was adopted: Maturity Maximum rate (days) (per cent) 30- 59 5’/2 60- 89 5% 90-179 6 180 and over 614 The maximum rate payable previously had been 514 per cent for all maturi­ ties. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 637 System open market operations until the next meeting of the Committee shall be conducted with a view to achieving firmer but maintaining orderly conditions in the money market, while facilitating market adjustments to the increase in Federal Reserve discount rates. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, and Robertson. Votes against this action: None. Absent and not voting: Mr. Sherrill. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material SPECIAL DRAWING RIGHTS IN THE Sec. 4. (a) The Secretary of the Treasury is au­ INTERNATIONAL MONETARY FUND thorized to issue to the Federal Reserve banks, and such banks shall purchase, Special Drawing Right By Act approved June 19, 1968 (Public Law certificates in such form and in such denominations as he may determine, against any Special Drawing Rights 90-349), Congress granted the President authority held to the credit of the Exchange Stabilization Fund. to accept an amendment to the Articles of Agree­ Such certificates shall be issued and remain outstand­ ment of the International Monetary Fund estab­ ing only for the purpose of financing the acquisition of Special Drawing Rights or for financing exchange lishing a facility based on Special Drawing Rights stabilization operations. The amount of Special Draw­ in the Fund and giving effect to certain modifica­ ing Right certificates issued and outstanding shall at tions in the existing rules and practices of the Fund. no time exceed the value of the Special Drawing Rights held against the Special Drawing Rights cer­ The Act also authorizes United States participation tificates. The proceeds resulting from the issuance of in the Special Drawing Account to be established Special Drawing Right certificates shall be covered into the Exchange Stabilization Fund. within the IMF by the amendment and makes pro­ (b) Special Drawing Right certificates owned by vision for the United States to accept the obliga­ the Federal Reserve banks shall be redeemed from tions that result from such participation in the spe­ the resources of the Exchange Stabilization Fund at such times and in such amounts as the Secretary of cial account. The text of the Act is as follows: the Treasury may determine. Sec. 5. (a) The third sentence of the second para­ graph of section 16 of the Federal Reserve Act, as AN ACT amended (12 U.S.C. 412), is amended by inserting “or Special Drawing Right certificates,” after “gold To provide for United States participation in the certificates,”. facility based on Special Drawing Rights in the (b) The first sentence of the fifth paragraph of International Monetary Fund, and for other pur­ section 16 of the Federal Reserve Act, as amended poses. (12 U.S.C. 415), is amended by inserting “Special Drawing Right certificates,” after “gold certificates,”. Be it enacted by the Senate and House of Repre­ (c) The seventh paragraph of section 16 of the sentatives of the United States of America in Congress Federal Reserve Act, as amended (12 U.S.C. 417), is assembled, That this Act may be cited as the “Special amended by (i) inserting “, Special Drawing Right Drawing Rights Act.” certificates,” after “gold certificates” in the first sen­ Sec. 2. The President is hereby authorized (a) to tence; (ii) inserting “Special Drawing Right certifi­ accept the amendment to the articles of agreement of cates,” after “gold certificates,” in the second sentence; the International Monetary Fund (hereinafter referred and (iii) inserting “and Special Drawing Right cer­ to as the “Fund”), attached to the April 1968 report tificates” after “gold certificates” in the third sentence. by the Executive Directors to the Board of Governors (d) The fifteenth paragraph of section 16 of the of the Fund, for the purpose of (i) establishing a Federal Reserve Act, as amended (12 U.S.C. 467), is facility based on Special Drawing Rights in the Fund amended by inserting (i) “or of Special Drawing and (ii) giving effect to certain modifications in the Right certificates” after “gold certificates” in the first present rules and practices of the Fund, and (b) to sentence, and (ii) by striking the third sentence and participate in the special drawing account established inserting in lieu thereof “Deposits so made shall be by the amendment. held subject to the orders of the Board of Governors Sec. 3. (a) Special Drawing Rights allocated to the of the Federal Reserve System and deposits of gold or United States pursuant to article XXIV of the Articles gold certificates shall be payable in gold certificates, of Agreement of the Fund, and Special Drawing and deposits of Special Drawing Right certificates Rights otherwise acquired by the United States, shall shall be payable in Special Drawing Right certificates, be credited to the account of, and administered as on the order of the Board of Governors of the Fed­ part of, the Exchange Stabilization Fund established eral Reserve System to any Federal Reserve bank or by section 10 of the Gold Reserve Act of 1934, as Federal Reserve agent at the Treasury or at the sub­ amended (31 U.S.C. 822a). treasury of the United States nearest the place of busi­ (b) The proceeds resulting from the use of Special ness of such Federal Reserve bank or such Federal Drawing Rights by the United States, and payments Reserve agent.” of interest to the United States pursuant to article XXVI, article XXX, and article XXXI of the Articles Sec. 6. Unless Congress by law authorizes such of Agreement of the Fund, shall be deposited in the action, neither the President nor any person or agency Exchange Stabilization Fund. Currency payments by shall on behalf of the United States vote to allocate the United States in return for Special Drawing Special Drawing Rights under article XXIV, sections Rights, and payments of charges or assessments pur­ 2 and 3, of the Articles of Agreement of the Fund so suant to article XXVI, article XXX, and article that net cumulative allocations to the United States XXXI of the Articles of Agreement of the Fund, shall exceed an amount equal to the United States quota in be made from the resources of the Exchange Stabiliza­ the Fund as heretofore authorized under the Bretton tion Fund. Woods Agreements Act of 1945, as amended (31 638 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

639 U.S.C. 822a(c), 22 U.S.C. 286e, 286e-l(a), basis. The mathematical simplicity argument sup­ 286e-lb). porting disregard of the violation that arises from Sec. 7. The provisions of article XXVII(b) of the Articles of Agreement of the Fund shall have full the 360-days-equals-one-year basis falls with re­ force and effect in the United States and its territories spect to such a bank. and possessions when the United States becomes a The Board also considers that it would be in­ participant in the special drawing account. appropriate for a bank to advertise an effective EXTENSION OF DEFENSE PRODUCTION ACT annual rate of interest on deposits in excess of the rate that results from computing interest at the By Act approved July I, 1968 (Public Law maximum permissible simple interest rate on the 90-370), Congress extended until June 30, 1970, type of deposit involved, compounded continuously those provisions of the Defense Production Act of for a full year. This means, for example, that a 1950 (including section 301, which is the basis for member bank may not advertise an effective annual guarantees of loans for defense production) that rate of interest in excess of 5.13 per cent on a 5 otherwise would have expired on June 30, 1968. per cent multiple maturity time deposit. PAYMENT OF INTEREST ON BASIS THAT 360 DAYS EQUALS ONE YEAR ORDER UNDER BANK MERGER ACT The question has arisen whether a member bank WACHOVIA BANK AND TRUST COMPANY, may pay interest on one-year deposits on the basis WINSTON-SALEM, NORTH CAROLINA that 360 days entitles a depositor to a full year’s In the matter of the application of Wachovia interest and add interest at the maximum per­ Bank and Trust Company for approval of merger missible rate on the type of deposit in question for with The State Bank. the remaining days (five or six) of the calendar year. Under such a practice, the depositor would, Order Approving Merger of Banks in effect, receive 370 days of interest on the deposit in one year. There has come before the Board of Governors, The Board of Governors considers that practices pursuant to the Bank Merger Act (12 U.S.C. of this type violate Regulation Q. Such regulation 1828(c)), an application by Wachovia Bank and does not authorize a bank to use “grace periods” in Trust Company, Winston-Salem, North Carolina, computing interest on time deposits at the maxi­ a State member bank of the Federal Reserve Sys­ mum permissible rate. In other words, the terms of tem, for the Board’s prior approval of the merger Regulation Q are not designed to permit a bank to of that bank and The State Bank, Laurinburg, pay interest at the maximum rate for more days North Carolina, under the charter and title of than funds are on deposit. Wachovia Bank and Trust Company. As an inci­ Nevertheless, the Board of Governors has con­ dent to the merger, the three offices of The State cluded that no useful purpose would be served by Bank would become branches of the resulting bank. preventing banks from computing interest, as a Notice of the proposed merger, in form approved matter of mathematical simplicity, on the basis that by the Board, has been published pursuant to said 30 days equals one month or one-twelfth of a year, Act. 90 days equals three months or one-quarter of a Upon consideration of all relevant material in year, 180 days equals six months or one-half of a the light of the factors set forth in said Act, in­ year, or even that 360 days equals one year. Al­ cluding reports furnished by the Comptroller of the though it is recognized that a bank which computes Currency, the Federal Deposit Insurance Corpora­ interest on such a basis will be paying interest at an tion, and the Attorney General on the competitive effective annual rate of interest slightly in excess of factors involved in the proposed merger, the applicable maximum simple interest rate com­ It is hereby ordered, for the reasons set forth pounded continuously for the number of days the in the Board’s Statement of this date, that said ap­ funds are on deposit, the Board will disregard this plication be and hereby is approved, provided that insignificant violation of its regulation. said merger shall not be consummated (a) before However, a bank that does compute interest on the thirtieth calendar day following the date of this the basis of 360 days equals one year, or the like, Order or (b) later than three months after the date may not add any interest computed on a daily of this Order. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN □ JULY 1968 dollar amount of business from a few large ac­ Dated at Washington, D.C., this 11th day of July, 1968. counts in the Laurinburg/Maxton area. Essentially all of this business, however, is beyond the capabili­ By order of the Board of Governors. ties of State Bank, which has a lending limit of Voting for this action: Chairman Martin and Gov­ $115,000. ernors Mitchell, Daane, and Sherrill. Voting against The merger would not eliminate any meaningful this action: Governors Robertson, Maisel, and Brimmer. competition between Wachovia and State Bank, nor (Signed) Robert P. Forrestal, would it reduce the number of banking alternatives Assistant Secretary. located in the Laurinburg/Maxton area. It would [seal] be preferable for Wachovia to enter this area by establishing a de novo branch, and North Carolina Statement law permits State-wide branching. While Wachovia did not apply for permission to establish such a Wachovia Bank and Trust Company, Winston- branch, entry by this method appears to be only a Salem, North Carolina (“Wachovia”), with total remote possibility as a practical matter. The North deposits of $1.2 billion, has applied, pursuant to Carolina Commissioner of Banks informed the the Bank Merger Act (12 U.S.C. 1828(c)), for Board by letter that he doubted that the State the Board’s prior approval of the merger of that Banking Commission would approve the establish­ bank with The State Bank, Laurinburg, North ment by Wachovia of a de novo branch in the Carolina (“State Bank”), which has total deposits Laurinburg area, which is already served by three of $12 million.1 The banks would merge under the banks, and that his office certainly would not charter and name of Wachovia, which is a member recommend approval. of the Federal Reserve System. As an incident to Wachovia, with about 22 per cent of total com­ the merger, the five offices of State Bank would be­ mercial bank deposits in the State, is the largest come branches of Wachovia, increasing the num­ bank in North Carolina; the largest percentage of ber of its offices to 111. deposits ever held by Wachovia was 24.1 per cent, Competition. State Bank operates its head office which it held as of December 31, 1961. The acqui­ and two branches in Laurinburg (population sition of State Bank would increase Wachovia’s 8,200), the seat of Scotland County (population share of the State's total commercial bank deposits 25,200); the bank also operates a branch at the by about two-tenths of one per cent. The five larg­ Laurinburg/Maxton industrial park, and a branch est banks in North Carolina hold 67 per cent of the in Maxton (population 1,800), which is seven State’s commercial bank deposits, which is a high miles east of Laurinburg in Robeson County. State degree of concentration in terms of State-wide Bank derives the preponderance of its business aggregates. However, the proposed merger would from the area within a 10-mile radius of Laurin­ enable Wachovia to establish offices in a county burg, which includes most of Scotland County and located near the center of a group of 17 counties the western portion of Robeson County. Commer­ in which it presently has no offices. cial State Bank (total deposits of $9 million), The effect of the merger on competition would which is headquartered in Laurinburg, operates not be significantly adverse. four offices in this area; the only other banking Financial and managerial resources and pros­ office in the area is the Laurinburg branch of pects. The banking factors with respect to each of Southern National Bank of North Carolina (total the banks proposing to merge are satisfactory, as deposits of $105 million), the State’s seventh larg­ they would be with respect to the resulting bank. est bank. State Bank holds nearly half of the de­ Convenience and needs of the communities. The posits held by the area’s 10 banking offices. It does only significant effect of the merger on banking not appear that any offices of other banks would be convenience and needs would be in the area pres­ adversely affected by the merger. ently served by State Bank. The nearest office of Wachovia to an office of In recent years, the economy of the Laurinburg/ State Bank is its branch in Asheboro, 80 miles north Maxton area has been undergoing a transition from of Laurinburg, but Wachovia derives a sizable agricultural to manufacturing activities. Since 1960, eight plants have established operations in Scotland 1 Figures are as of December 30, 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 641 County; the principal firms employ well over 3,000 increased from $7 million in 1959 to $12 million persons and, in the last four years, the county’s in 1967; during the 18-month period from June industrial payroll has increased by 62 per cent. The 1966 to December 1967, the bank’s deposits rose Laurinburg/Maxton industrial park, containing by 20 per cent. This deposit growth has been ac­ some 2,000 acres, is designed to attract new indus­ companied by an upward trend in earnings. State try. Wachovia has been a factor directly, and in­ Bank, which is located in an area of considerable directly through participations, in financing the industrial potential, would have very good prospects larger concerns in this area whose needs are beyond for continued growth, but for the majority’s order the capacity of an institution the size of State Bank authorizing its extinction. with its low lending limit. In arriving at the conclusion that the acquisition Wachovia has extended commercial credit in of State Bank by Wachovia would not have a sig­ Laurinburg in amounts approximating $2 million nificantly adverse effect on competition the ma­ on the average, almost double the amount of de­ jority, we believe, fails to include all of the relevant posits it derives from businesses and individuals in considerations under the competitive factor. Al­ the area. In addition it has extended substantial though State Bank does not presently compete for amounts of instalment credit in Laurinburg, having the large deposit and loan accounts that Wachovia about $850,000 in such loans outstanding as of derives from the Laurinburg/Maxton market, State September 1967. Thus, Wachovia’s contribution to Bank could become a competitor for much of this the area’s banking needs would not only be a com­ business. This could occur, either through the in­ petently blended range of banking services and a ternal growth of State Bank, or through its merger large lending limit, but also the access to credit re­ with a larger bank operating in a separate market, sources beyond those generated locally. but with other than one of the State’s largest bank­ The replacement of State Bank by offices of ing institutions. In addition, the development of Wachovia would facilitate the economic growth of competition between Wachovia and State Bank the Laurinburg/Maxton area by affording a con­ through the establishment by Wachovia of a de venient alternative source of credit for medium­ novo branch in the Laurinburg/Maxton market sized business concerns, which are to a great extent should not be ruled out on the ground that the dependent upon local sources for banking services. North Carolina Banking Commission would prob­ Summary and conclusions. In the judgment of ably deny an application for authority to establish the Board, the proposed merger would benefit the such a branch. This is especially true where, as banking convenience and needs of the Laurinburg/ here, Wachovia didn’t even bother to file an appli­ Maxton area, and would not result in any signifi­ cation. The effectiveness of the Bank Merger Act cantly adverse consequences for banking compe­ should not be blunted by capitulation to the anti­ tition. competitive policies of State authorities; the State Accordingly, the Board concludes that the appli­ policies may well be changed, particularly if they cation should be approved. are not reinforced by the actions of Federal authorities. Moreover, the acquisition of State Bank by Dissenting Statement of Governors Wachovia ought to be regarded as seriously anti­ Robertson, Maisel and Brimmer competitive even if the statute law of North Caro­ lina flatly prohibited de novo branching. The ques­ In our judgment, the majority, by approving the tion of whether there is existing or potential com­ application in this case, gives its sanction to exactly petition between these banks is not the only—or the kind of transaction the Bank Merger Act was designed to preclude. even the most important—consideration in assess­ State Bank is one of only two banks headquar­ ing the consequences of the merger for competition. tered in Scotland County and it is one of only three The replacement of viable banks such as State banks operating offices in the Laurinburg/Maxton Bank by offices of the State’s largest banking insti­ market area. It operates 5 of the 10 banking offices tutions reduces the likelihood of market entry by situated in this area and accounts for nearly half newly chartered banks. And, to allow the few of the total deposits held by these 10 offices. State largest banks to become, through mergers, the only Bank has been a growing institution. Its deposits (or the principal) alternatives in every significant Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN □ JULY 1968 local banking market in the State—which is plainly deposits Wachovia ever held was 24.1 per cent, the trend in North Carolina—is simply to allow which was in 1961. Our duty under the law is not them to enlarge the geographical sphere of their to facilitate the reversal of a trend toward the dominance.1 If this trend is not halted, the barriers deconcentration of banking resources, if any there to market entry will become virtually complete be, but to preserve the possibility of further de­ and consumers of banking services, except the very concentration. In point of fact, however, the five largest, in whatever direction they turn, will have to largest banks in North Carolina held 67 per cent deal with one of a mere handful of banks. The of the State’s commercial bank deposits, as of June Bank Merger Act and the antitrust laws were de­ 30, 1 967, whereas they held 42.4 per cent of these signed to prevent just this kind of situation from deposits ten years earlier; this is by far the largest developing—to halt it in its incipiency. increase in the percentage of deposits held during Wachovia has averaged one merger per year for this period experienced by the five largest banking the past 13 years, acquiring in the process loans in organizations in any State in the Union. There are excess of $82 million and deposits in excess of only 1 1 States in which the concentration of bank­ $178 million. These loans and deposits represent ing resources in the top five banking organizations approximately 12 per cent and 17 per cent, re­ is greater than in North Carolina; there were slight spectively, of Wachovia’s loans and deposits as of decreases in concentration ratios in seven of these June 30, 1967. During this period of 13 years, States during the decade ended June 30, 1967. Wachovia and the next four largest banks in North The majority bases its approval of the applica­ Carolina together acquired 59 banks by merger, tion in this case on the ground that State Bank has along with more than $454 million in loans and been unable to meet the larger credit needs of its over $835 million in deposits.-' These loans and de­ customers, and asserts that the merger “. . . would posits represent more than 21 per cent and 25 per facilitate the economic growth of the Laurinburg/ cent, respectively, of the loans and deposits held by Maxton area by affording a convenient alternative these five banks as of June 30, 1967. For North source of credit for medium-sized business con­ Carolina National Bank, the State’s second largest cerns, which are to a great extent dependent upon bank, these loans and deposits represent approxi­ local sources for banking services.” During 1967, mately 36 per cent and 38 per cent, respectively, State Bank originated six loans, portions of which of the loans and deposits it held on June 30, 1967; were placed with other banks. The Laurinburg/ for First Union National Bank of North Carolina, Maxton area is served by an office of the State’s the State’s third largest bank, these loans and de­ seventh largest bank, which has total deposits in posits represent approximately 34 per cent and 39 excess of $100 million; and, of course, the area is per cent, respectively, of the loans and deposits it served by Wachovia, particularly the area’s larger held on June 30, 1967. The successful merger ac­ credit needs. Further, as we indicated earlier, the tivities of these banks, which are Wachovia’s two establishment by Wachovia of a de novo branch in largest competitors, have, without doubt, influ­ the Laurinburg/Maxton area should not be ruled enced Wachovia to seek additional banks through out; nor should the merger of State Bank with a merger; and the majority’s approval of the merger larger bank, but with other than one of the State’s of Wachovia and State Bank will, no doubt, in­ giants. In short, if there is any evidence in the fluence Wachovia’s large competitors to seek still record of this case supporting the conclusion that more banks through merger. the banking needs of the Laurinburg/Maxton area It is no answer to say, as does the majority, that are not being—or will not be—adequately and con­ although Wachovia, with about 22 per cent of total veniently met, we are unable to find it—and cer­ commercial bank deposits in the State, is the largest tainly, the majority has not adduced any. Thus, bank in North Carolina, the largest percentage of even if the probable competitive consequences of the merger could be properly denominated as “not i First Union National Bank of North Carolina, the significantly adverse” (and we think the effect on State’s third largest bank, recently filed an application to competition will be substantially adverse), there is acquire the sole remaining bank headquartered in Scotland County. nothing under the convenience and needs factor to a Loan and deposit figures are adjusted to reflect a total warrant approval. of three mergers effected after June 30, 1967, by the second and third largest banks in the State. In sum, we think it is quite clear that the con- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 643 tinued elimination of sound, independent banks, It is hereby ordered, for the reasons set forth such as State Bank, through merger with the domi­ in the Board’s Statement of this date, that said ap­ nant banks in North Carolina is inimical to the plication be and hereby is approved, provided that preservation of healthy banking competition in the the acquisition so approved shall not be consum­ State. Indeed, if the majority’s rationale for approv­ mated (a) before the thirtieth calendar day follow­ ing this application is followed, the result will be a ing the date of this Order or (b) later than three banking structure in which a few giant banks months after the date of this Order, unless such blanket the whole of North Carolina, a result that period is extended for good cause by the Board or is directly at odds with the very purpose of the by the Federal Reserve Bank of San Francisco Bank Merger Act. pursuant to delegated authority. We would deny the application. Dated at Washington, D. C., this 24th day of June, 1968. ORDERS UNDER SECTION 3 OF By order of the Board of Governors. BANK HOLDING COMPANY ACT Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, and Sherrill. Ab­ UNION BOND & MORTGAGE COMPANY, sent and not voting: Governors Maisel and Brimmer. PORT ANGELES, WASHINGTON (Signed) Kenneth A. Kenyon Deputy Secretary. In the matter of the application of Union Bond [seal] & Mortgage Company, Port Angeles, Washington, for approval of acquisition of 190 voting shares of In the matter of the application of Union Bond The First American National Bank of Port Towns­ & Mortgage Company, Port Angeles, Washington, end, Port Townsend, Washington. for approval of acquisition of 274.5 voting shares of Forks State Bank, Forks, Washington. Order Approving Application Under Bank Holding Company Act Order Approving Application Under There has come before the Board of Governors, Bank Holding Company Act pursuant to section 3(a)(3) of the Bank Holding There has come before the Board of Governors, Company Act of 1956 (12 U.S.C. 1842(a)(3)) pursuant to section 3(a)(3) of the Bank Holding and section 222.3(a) of Federal Reserve Regula­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) tion Y (12 CFR 222.3(a)), an application by and section 222.3(a) of Federal Reserve Regula­ Union Bond & Mortgage Company, Port Angeles, tion Y (12 CFR 222.3(a)), an application by Washington, for the Board’s prior approval of ac­ Union Bond & Mortgage Company, Port Angeles, quisition of 190 voting shares of The First Ameri­ Washington, for the Board’s prior approval of ac­ can National Bank of Port Townsend, Port Towns­ quisition of 274.5 voting shares of Forks State end, Washington. Bank, Forks, Washington. As required by section 3(b) of the Act, on April As required by section 3(b) of the Act, the 30, 1968, the Board notified the Comptroller of Board notified the Supervisor of Banking for the the Currency of the application and requested his State of Washington of the application and re­ views and recommendation. The Comptroller has quested his views and recommendation. The Super­ not expressed any views or made any recommenda­ visor of Banking advised the Board that he had no tion with regard to the application. objection to the proposal. Notice of receipt of the application was pub­ Notice of receipt of the application was pub­ lished in the Federal Register on May 7, 1968 (33 lished in the Federal Register on May 7, 1968 (33 Federal Register 6899), providing an opportunity Federal Register 6899), providing an opportunity for interested persons to submit comments and for interested persons to submit comments and views views with respect to the proposal. A copy of the with respect to the proposal. A copy of the appli­ application was forwarded to the United States De­ cation was forwarded to the United States Depart­ partment of Justice for its consideration. Time for ment of Justice for its consideration. Time for filing filing comments and views has expired and all those comments and views has expired and all those re­ received have been considered by the Board. ceived have been considered. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN □ JULY 1968 It is hereby ordered, for the reasons set forth filing comments and views has expired and all those in the Board’s Statement of this date, that said ap­ received have been considered by the Board. plication be and hereby is approved, provided that It is hereby ordered, for the reasons set forth the acquisition so approved shall not be consum­ in the Board’s Statement of this date, that said ap­ mated (a) before the thirtieth calendar day follow­ plication be and hereby is approved, provided that ing the date of this Order or (b) later than three the acquisition so approved shall not be consum­ months after the date of this Order, unless such mated (a) before the thirtieth calendar day follow­ period is extended for good cause by the Board or ing the date of this Order or (b) later than three by the Federal Reserve Bank of San Francisco pur­ months after the date of this Order, unless such suant to delegated authority. period is extended for good cause by the Board or Dated at Washington, D. C., this 24th day of by the Federal Reserve Bank of San Francisco pur­ June, 1968. suant to delegated authority. Dated at Washington, D, C., this 24th day of By order of the Board of Governors. June, 1968. Voting for this action: Chairman Martin and Gov­ By order of the Board of Governors. ernors Robertson, Mitchell, Daane, and Sherrill. Ab­ sent and not voting: Governors Maisel and Brimmer. Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, and Sherrill. Ab­ (Signed) Kenneth A. Kenyon, sent and not voting: Governors Maisel and Brimmer. Deputy Secretary. (Signed) Kenneth A. Kenyon, [seal] Deputy Secretary. |seal| In the matter of the application of Union Bond & Mortgage Company, Port Angeles, Washington, Statement for approval of acquisition of 1,388 voting shares Union Bond & Mortgage Company, Port An­ of Bank of Sequim, Sequim, Washington. geles, Washington (“Applicant”), a registered bank holding company, presently has four banking sub­ Order Approving Application Under sidiaries, all located in the State of Washington. Bank Holding Company Act Applicant has applied to the Board of Governors, There has come before the Board of Governors, pursuant to section 3(a)(3) of the Bank Holding pursuant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)), Company Act of 1956 (12 U.S.C. 1842(a)(3)) for prior approval of the acquisition of additional and section 222.3(a) of Federal Reserve Regula­ voting shares in three of the four bank subsidiaries. tion Y (12 CFR 222.3(a)), an application by Applicant proposes to increase its present holdings Union Bond & Mortgage Company, Port Angeles, in its three subsidiaries by the following amounts: Washington, for the Board’s prior approval of ac­ an additional 190 voting shares of The First Amer­ quisition of 1,388 voting shares of Bank of Sequim, ican National Bank of Port Townsend, Port Sequim, Washington. Townsend; an additional 274.5 voting shares of As required by section 3(b) of the Act, the Forks State Bank, Forks; and an additional 1,388 Board notified the Supervisor of Banking for the voting shares of Bank of Sequim, Sequim, all in State of Washington of the application and re­ Washington. As a group, these three banks are quested his views and recommendation. The Super­ herein referred to as “the Banks”. While each of visor of Banking advised the Board that he had no the applications has been separately considered and objection to the proposal. is the subject of a separate Board Order herein, Notice of receipt of the application was pub­ because of facts and circumstances common to all lished in the Federal Register on May 7, 1968 (33 the applications, this Statement contains the Federal Register 6899), providing an opportunity Board’s findings and conclusions with respect to for interested persons to submit comments and the three applications. views with respect to the proposal. A copy of the Applicant’s four subsidiary banks, including the application was forwarded to the United States De­ Banks that are the subjects of these applications, partment of Justice for its consideration. Time for are all located in the Olympic Peninsula area of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 645 Washington, and have aggregate deposits of ap­ The shares of the Banks which Applicant proposes proximately $37 million.1 to acquire are held by the estate of the deceased Applicant’s largest subsidiary, First National wife of Applicant’s president, and are being sold in Bank in Port Angeles, has deposits of $18.3 mil­ order to provide the estate with funds for payment lion. The deposits of the Banks are: First Ameri­ of taxes. The proposed acquisitions do not involve can National Bank of Port Townsend—$9.6 mil­ an expansion of the banking group controlled by lion; Bank of Sequim—$5.5 million; and Forks Applicant, an increase in the banking resources State Bank—$3.2 million. controlled, or an alteration in the competitive situ­ Views and recommendations of supervisory au­ ation presently existing among the banks in the thorities. As required by section 3(b) of the Act, areas presently served by Applicant’s subsidiaries. on April 30, 1968, the Board notified the Comp­ Finally, since each of Applicant’s subsidiaries op­ troller of the Currency of receipt of the application erates in a distinct banking market, with the closest relating to The First American National Bank of subsidiary banks being 17 miles apart, no signifi­ Port Townsend and requested his views and rec­ cant issues with respect to competition among the ommendation thereon. The Comptroller has not subsidiary banks are posed by the contemplated in­ expressed any views or made any recommendation crease in the extent of Applicant’s control over with regard thereto. Also, as required by section Banks. Thus, Applicant’s acquisition of additional 3(b) of the Act, the Board notified the Supervisor shares of its present subsidiaries, as proposed, will of Banking for the State of Washington of the ap­ not affect banking concentration or competition in plications relating to Forks State Bank and any of the relevant areas. Bank of Sequim. The Supervisor of Banking ad­ Convenience and needs of the communities. vised the Board that he had no objection to either Each of the Banks appears to be adequately serv­ application. ing the banking needs and requirements of its cus­ Statutory considerations. Section 3(c) of the Act tomers, and there would be no change in the provides that the Board shall not approve an acqui­ services rendered by any of them as a result of the sition that would result in a monopoly or would be acquisitions by Applicant. Approval of the applica­ in furtherance of any combination or conspiracy to tions will have no effect on the convenience and monopolize or attempt to monopolize the business needs of the communities served by the Applicant of banking in any part of the United States. Nor and its subsidiary banks. may the Board approve any other proposed acquisi­ Financial and managerial resources and future tion the effect of which, in any section of the coun­ prospects. Applicant and each of the Banks are in try, may be substantially to lessen competition, or sound financial condition and the financial and to tend to create a monopoly, or which in any managerial resources of each, together with its fu­ other manner would be in restraint of trade, unless ture prospects, are regarded as satisfactory and are the Board finds that the anticompetitive effects of consistent with approval of the applications. the proposed transaction are clearly outweighed in Summary and conclusion. Based on all the rele­ the public interest by the probable effect of the vant facts contained in the records, and in the light transaction in meeting the convenience and needs of the factors set forth in section 3(c) of the Act, of the community to be served. In each case, the it is the Board’s judgment that the proposed trans­ Board is required to take into consideration the actions would be in the public interest and that the financial and managerial resources and future pros­ applications should be approved. pects of the bank holding company and the banks concerned, and the convenience and needs of the FIRST WISCONSIN BANKSHARES community to be served. CORPORATION, Competitive effect of proposed transaction. Con­ MILWAUKEE, WISCONSIN summation of Applicant’s proposals will increase In the matter of the application of First Wiscon­ its present holdings in The First American National sin Bankshares Corporation, Milwaukee, Wiscon­ Bank of Port Townsend from 31.8 to 41.3 per sin, for approval of acquisition of 80 per cent or cent; in Forks State Bank from 25 to 38.7 per cent; more of the voting shares of First Northwestern and in Bank of Sequim from 25 to 42.4 per cent. National Bank of Milwaukee, Milwaukee, Wiscon­ i Banking data are as of December 30, 1967. sin, a proposed new bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN □ JULY 1968 Order Approving Application Under date of this Order or (b) later than three months Bank Holding Company Act after the date of this Order unless such period is extended for good cause by the Board or by the There has come before the Board of Governors, Federal Reserve Bank of Chicago pursuant to dele­ pursuant to section 3(a)(3) of the Bank Holding gated authority, and that First Northwestern Na­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) tional Bank of Milwaukee shall be open for busi­ and section 222.3(a) of Federal Reserve Regula­ ness not later than six months after the date of this tion Y (12 CFR 222.3(a)), an application by Order. First Wisconsin Bankshares Corporation, Milwau­ Dated at Washington, D. C. this 2nd day of kee, Wisconsin, for the Board’s prior approval of July, 1968. the acquisition of 80 per cent or more of the voting shares of First Northwestern National Bank of Mil­ By order of the Board of Governors. waukee, Milwaukee, Wisconsin, a proposed new Voting for this action: Chairman Martin and Gov­ bank. ernors Mitchell, Maisel, and Sherrill. Voting against As required by section 3(b) of the Act, the this action: Governor Robertson. Absent and not voting: Governors Daane and Brimmer. Board notified the Comptroller of the Currency of receipt of the application and requested his views (Signed) Robert P. Forrestal, and recommendation. The Comptroller recom­ Assistant Secretary. mended approval of the application. [seal] Notice of receipt of the application was pub­ lished in the Federal Register on July 29, 1967 (32 Statement Federal Register 11098), which provided an op­ First Wisconsin Bankshares Corporation, Mil­ portunity for interested persons to submit com­ waukee, Wisconsin (“Applicant”), a registered ments and views with respect to the proposed ac­ bank holding company, has applied to the Board quisition. A copy of the application was forwarded of Governors, pursuant to section 3(a)(3) of the to the United States Department of Justice for its Bank Holding Company Act of 1956 (12 U.S.C. consideration. 1842(a)(3)), for prior approval of the acquisition Opposition to the proposal was filed on behalf of 80 per cent or more of the voting shares of First of The Brown Deer Bank, Silver Spring Bank, and Northwestern National Bank of Milwaukee, Mil­ Hampton State Bank (“Protestants”), all located waukee, Wisconsin (“Bank”), a proposed new in Milwaukee, Wisconsin. Acting in its discretion, bank. the Board ordered that an oral presentation of Applicant controls 1 1 banks with total deposits views be conducted before the Board, in order of $1.2 billion as of June 30, 1967.’ Applicant that the Protestants would have an opportunity to estimates that Bank will have $3.9 million deposits fully state and support their opposing views, and after three years of operation. that Applicant would have the opportunity to re­ Views and recommendation o/ supervisory au­ spond. Notice of the oral presentation was pub­ thority. As required by section 3(b) of the Act, lished in the Federal Register (32 Federal Register the Board notified the Comptroller of the Currency 18126), and, in accordance therewith, an oral of receipt of the application and requested his presentation was held at the Board’s offices on views and recommendation thereon. The Comp­ January 12, 1968. All participants were afforded troller recommended approval of the application. full opportunity to support their positions by oral Oral presentation. On July 29, 1967, there was statement and documentary evidence, and were published in the Federal Register (32 Federal permitted an opportunity, following the oral presen­ Register I 1098) a notice of receipt of the applica­ tation, for the filing of briefs. tion by the Board. The notice provided that within Having considered all matters properly before 30 days of publication comments and views on the the Board in this proceeding, proposed acquisition could be filed with the Board. It is hereby ordered, for the reasons set forth Opposition to the proposal was filed on behalf of in the Board’s Statement of this date, that said ap­ The Brown Deer Bank, Silver Spring Bank (a subplication be and hereby is approved, provided that the action so approved shall not be consummated 1 All banking data are as of this date unless otherwise (a) before the thirtieth calendar day following the noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 647 sidiary of Marshall & Ilsley Bank Stock Corpora­ consin - control about 37 per cent of State de­ tion, a registered bank holding company), and posits. Applicant, the largest banking organization Hampton State Bank (“Protestants”), all located in the State, controls about 17 per cent of such in Milwaukee, Wisconsin. The Brown Deer Bank deposits. requested a public hearing. The Milwaukee Standard Metropolitan Statisti­ In view of the fact that the Comptroller of the cal Area (“SMSA”) includes Milwaukee County Currency did not recommend disapproval of the and three other counties. The 3 largest banking application, no hearing was required by the Bank organizations in this area, all of which are Mil­ Holding Company Act. However, the Board found waukee-based bank holding companies, control it appropriate in the public interest to afford about 65 per cent of the total deposits in the SMSA Protestants an opportunity to appear before the and about 72 per cent of the deposits in Milwaukee Board to fully state and support their opposing County. Subsidiaries of Applicant control 34 per views, and for Applicant to respond thereto. Ac­ cent of the deposits in the SMSA and 38 per cent cordingly, the Board, acting in its discretion, of the deposits in Milwaukee County. ordered that an oral presentation of views be con­ Since the instant proposal involves the acquisi­ ducted before the Board. Notice of the oral presen­ tion of a proposed new bank which will be opened tation was published in the Federal Register (32 only in the event of approval of the application, no Federal Register 18126), and, in accordance there­ existing or potential competition between Bank and with, an oral presentation was held at the Board’s Applicant’s present subsidiaries would be elimi­ offices on January 12, 1968. Protestants and Ap­ nated by the proposal and no immediate increase plicant were represented by counsel and were af­ in banking concentration in any area would result. forded full opportunity to support their positions Nevertheless, in view of the significant degree of by oral statement and documentary evidence. concentration reflected by the foregoing data, and Statutory considerations. Section 3(c) of the Act the extent of Applicant’s participation in such large provides that the Board shall not approve an acqui­ organization control of banking resources, it can­ sition that would result in a monopoly or would be not be said that a proposal by Applicant to estab­ in furtherance of any combination or conspiracy to lish a new subsidiary in the area of its greatest monopolize or to attempt to monopolize the busi­ domination (Milwaukee County) presents no com­ petitive issues. Inasmuch as entry into a commer­ ness of banking in any part of the United States. cial banking market is restricted, opportunities for Nor may the Board approve a proposed acquisition deconcentration are limited. This is particularly the effect of which, in any section of the country, true in a State such as Wisconsin, where branch­ may be substantially to lessen competition, or to ing is highly restricted. If every newly developing tend to create a monopoly, or which in any other need for banking facilities which arises in a con­ manner would be in restraint of trade, unless the centrated market were to be filled by the market’s Board finds that the anticompetitive effects of the dominant organization, any meaningful deconcen­ proposed transaction are clearly outweighed in the tration of the market’s banking resources would be public interest by the probable effect of the trans­ made impossible, and further concentration might action in meeting the convenience and needs of the be encouraged. Each application by such an organi­ community to be served. In each case the Board is zation to expand within its present trade area, even required to take into consideration the financial through acquisition of a new bank, must therefore and managerial resources and future prospects of be examined to determine its probable effect on the bank holding company and the banks con­ existing concentration, whether it will foreclose an cerned, and the convenience and needs of the opportunity for new entry which could provide community to be served. additional competition and possibly promote a de­ Competitive effect of proposed transaction. The crease in concentration, and its effect in limiting the development of existing competitors located in 10 largest banking organizations in Wisconsin, of which 6 are bank holding companies, control $2.7 billion of deposits, or 38.5 per cent of the total - Includes all bank holding company formations ap­ proved by the Board to date, and also includes three bank deposits held by all commercial banks in the State. holding companies headquartered in Minnesota which The 11 bank holding companies operating in Wis­ have banking subsidiaries in Wisconsin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

648 FEDERAL RESERVE BULLETIN □ JULY 1968 or near the area to be served by the new institution. sult in a monopoly nor be in furtherance of any In. the performance of the afore-described ana­ combination, conspiracy, or attempt to monopolize lytical process, the Board has been aware that an the business of banking in any relevant area. overly restrictive approach to such proposed ex­ The projected primary service area 3 of the new pansion would serve only to limit such an organiza­ bank comprises approximately nine square miles tion’s ability to provide a more convenient com­ in the northwestern part of the city of Milwaukee. petitive alternative to institutions more proximately The area is still in the early stages of industrial, located to the area which the new bank proposes to commercial, and residential development and no serve. In the absence of an evidentiary basis for banking facilities are located therein. Several bank­ concluding that existing institutions require this ing offices are located near the area, including protection, such an approach would impede, rather three offices of Applicant’s largest subsidiary bank, than promote, the public interest in a competitive some five to seven miles to the south and southeast banking market. To deny every proposed expan­ of Bank’s site. Each of the Protestant banks is lo­ sion by an organization of Applicant’s size is po­ cated about three miles from the site. tentially as inimical to competition as would be a Protestants claim that there is not yet sufficient practice of approving every such proposal. Recog­ banking business being generated within Bank’s nizing that such expansion may have significant proposed service area to justify the establishment anticompetitive effects in a particular case, but of a new bank at this time. They assert that ap­ need not have such effects in every case, inquiry proval of Applicant’s proposal now would preclude must be made as to whether the record facts dem­ at a later, more needful time, the establishment of onstrate such effects to be so probable in the par­ a new banking institution, unaffiliated with present ticular case as to require denial unless clearly out­ competitors, which would be a source of additional weighed by other considerations. competition and would promote deconcentration. Without minimizing the extent of existing con­ The record, however, amply supports Applicant’s centration in Milwaukee County, in analyzing the contention that the present population (11,000) probable effect of the proposal on the market struc­ and projected commercial development of the area ture it is significant that there is presently a pro­ is adequate to support profitable operations of nounced trend toward deconcentration in the area. Bank, a conclusion also reached by the Comptroller Between the end of 1960 and June 30, 1967, the of the Currency, on the record before him, in share of Milwaukee County deposits held by the granting a charter to Bank. While it seems clear three largest bank holding companies has declined that new entry would be a competitively preferable from 76.5 per cent to 72.1 per cent. Applicant’s means of satisfying the present and anticipated market share has declined by 3.8 per cent over the banking needs of the community, nothing in the same period, and by about 22 per cent since 1945.. record provides a basis for concluding that such Assuming the accuracy of the projection that Bank entry is reasonably probable within the foreseeable will have about $3.9 million in deposits after three future. As is true of almost every application to years of operation, Applicant’s market share would expand an already large organization, there exists increase by .16 per cent if all of such deposits rep­ in this case the possibility that more procompetitive resented new growth. Actually, however, since the means could be devised to satisfy the banking projection is based upon the anticipation that there needs of the community. This possibility is ac­ will be a transfer to Bank of deposits now held by corded but slight weight in analyzing the public Applicant’s subsidiary, First Wisconsin National interest factor with respect to the proposal, particu­ Bank, it is unlikely that the increase in Applicant’s larly where, as here, there is no indication that present market share will be that great. In any Applicant’s proposal is itself inimical to the preser­ event, since Applicant’s market share has been de­ vation of sound banking competition. clining at an annual rate of about .5 per cent since As to the effect of the proposal on existing com­ 1961, the predictable effect of the proposal would petitors, it appears that all of the banks located near the area to be served by Bank, including the be to reduce slightly and temporarily the rate of deconcentration, rather than to increase concentra­ a The area from which it is estimated that Bank will tion. Under these circumstances, the Board con­ obtain approximately 75 per cent of its deposits of indi­ cludes that the proposed transaction would not re­ viduals, partnerships, and corporations (“IPC deposits”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 649 Protestants, have shown reasonably good growth. transaction would be in the public interest and that Each appears to have the ability to respond to any the application should be approved. increase in competition which might result from consummation of Applicant’s proposal. The expec­ Dissenting Statement of Governor tation of such increased competition for local ac­ Robertson counts tends to support approval of the proposal, In administrative bodies, no less than in the rather than weight against it. courts, it is the “good” cases that are largely re­ On the basis of the record before it, the Board sponsible for bad decisions. If the Applicant here concludes that consummation of Applicant’s pro­ were an out-and-out predatory aggressor, using posal would not substantially lessen competition, every means available to gain a strangle hold over tend to create a monopoly, or restrain trade in any a given market, no member of this Board would section of the country. have experienced any difficulty with the case. But Financial and managerial resources and future exactly the opposite is true here; although the Ap­ prospects. Applicant’s financial condition, and that plicant is the largest banking institution in a highly of its subsidiary banks, is regarded as satisfactory. concentrated banking market, its degree of domi­ Its prospects arc also regarded as favorable, as are nation has been decreasing—not increasing. those of its subsidiary banks. The management of The exemplary performance of this Applicant Applicant and its subsidiary banks is considered over the years makes it exceedingly difficult to capable and experienced and in all respects satis­ withhold the privilege of establishing a new bank factory. in an outlying area for the purpose of better serving Bank has no financial or operating history. Based its customers. But if a supervisory agency is to upon its projected growth and earnings, which pro­ make its fullest contribution to the public welfare jections appear reasonable, and the fact that its by providing the very best administration of legis­ management will be derived from Applicant’s lative measures, such as the Bank Holding Com­ present subsidiaries, considerations under this fac­ pany Act and the Bank Merger Act, it must, to the tor, as they relate to Bank, are also regarded as fullest extent possible, make its positions clear and consistent with approval of the application. applicable to all alike. Evenhanded justice pre­ Convenience and needs of the community in­ cludes twisting positions on the basis of the char­ volved. The convenience and needs of customers acter of the Applicant—either in a lenient direc­ in those areas in which Applicant’s present sub­ tion for a “good” Applicant or in the opposite sidiaries are located would not be affected by con­ direction for another. summation of the proposal. Three bank holding companies headquartered in It appears that the banking needs of customers Milwaukee control 65 per cent of total deposits in located in Bank’s service area are presently being the Milwaukee Standard Metropolitan Statistical served, in varying degrees of convenience, by Area, and 72 per cent of the total deposits in Mil­ banks located outside the area, including Appli­ waukee County. The Applicant, First Wisconsin cant’s largest subsidiary bank. Consummation of Bankshares, the largest banking organization in Milwaukee and in the State of Wisconsin, controls the proposal would make the services of Appli­ about 34 per cent of the total deposits in the SMSA cant’s system more conveniently available to its and about 38 per cent of the total deposits in Mil­ present customers, and would provide other resi­ waukee County. It is this bank holding company dents and businesses within the projected service which seeks to expand its operations by establish­ area with a local alternative source of banking serv­ ing a new bank, The First Northwestern National ices which are presently obtainable only at a dis­ Bank of Milwaukee, in a location where its eco­ tance of three miles or more. nomic feasibility, during the first two years at least, Considerations under this factor support ap­ is dependent on the transfer of accounts held at proval of the application. offices of its other subsidiaries. Put another way, Summary and conclusion. On the basis of all the new bank is to be established at a place where relevant facts contained in the record, and in the the need and profitability are insufficient now to light of the factors set forth in section 3(c) of the justify others in attempting to compete for the Act, it is the Board’s judgment that the proposed privilege. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN □ JULY 1968 The majority acknowledges that it would be un­ fer of accounts of area residents presently held by desirable to permit a dominant banking organiza­ Applicant’s other subsidiaries. Deposits of area tion in an already highly concentrated market to residents at offices of Applicant’s subsdiaries now gobble up every site for which an actual or poten­ total approximately $3 million, and it is reasonably tial need for banking services may exist,, since to anticipated by Applicant that its ownership of a do so would tend to promote increased concentra­ bank more conveniently located with respect to tion and to foreclose a possible avenue of decon­ such customers should result in a transfer of many centration. Nevertheless, the Board has approved such accounts. First Wisconsin’s application on the stated premise Applicant’s posture is that of offering a more that “the record . . . amply supports Applicant’s accessible location to present customers, whereas contention that the present population (11,000) an unafflliated institution must begin with no estab­ and projected commercial development of the area lished customer loyalties. The foregoing circum­ is adequate to support profitable operations of stances clearly evidence Applicant’s competitive Bank”, and upon the absence of any evidence of advantage, the nature of which, in my judgment, record reflecting that a competitively preferable strongly parallels a comeptitive position criticized proposal for serving the community’s banking more than twenty years ago by Judge Learned needs would be forthcoming in the event of denial Hand in the case of United States v. Alcoa, 148 F. of the present application. 2d 416 (2d Cir. 1945). Referring to Alcoa’s In my view, the Board’s attention should focus, monopolization of the aluminum ingot market, not on the question of whether the area will sup­ Judge Hand observed: port profitable operations of this particular bank, “[Alcoa] insists that it never excluded competitors; but on whether, in the alternative, the area would but we can think of no more effective exclusion than support profitable operations of a bank unafflliated progressively to embrace each new opportunity as it opened, and to face every newcomer with new ca­ with this holding company. In an early decision pacity already geared into a great organization, having under the Act, the Board, in denying an application the advantage of experience, trade connections, and of a large bank holding company to acquire a the elite of personnel.” Id. at 431. proposed new bank, observed that: The Board’s approval of this application enables “Bank holding companies often have the available the Applicant to establish a new office in an area resources, and therefore the ability, to act more far in advance of the time when anyone else could quickly than a group of individuals in endeavoring to establish a new bank in an area which gives promise be expected to compete for the privilege. In such of supporting a successful banking operation. Such case, it is hardly surprising that there is no evi­ early establishment of a bank, and the acquisition of dence of a competitively preferable proposal. its stock by a bank holding company, may benefit the community in some respects. On the other hand, such In my opinion, a bank holding company which an entry into an area by a bank holding company already controls such a huge proportion of the bank may, in some circumstances, ‘expand the size or extent’ of the bank holding company system in such a bank deposits in its area of operation should not manner or to such a degree as to have a strong tend­ be permitted to expand by acquiring a new bank ency to preclude later entry by a bank which is not controlled by a bank holding company. It is apparent within that area in advance of the time at which a that in such a situation control of a bank by a bank bank at the same proposed location could be profit­ holding company would run counter to [competitive] considerations . . . and should not be approved unless ably established by others not enjoying the benefit there are considerations favorable to the application of the holding company’s market position. that are sufficient to offset such adverse circum­ Approval of the instant application enables the stances.” 1 Applicant to exploit its considerable market power In the present case, it is anticipated that the new to foreclose opportunity for other prospective mar­ bank will become profitable in its third year of ket entrants. Carried to its logical conclusions, such operation, at the end of which it will have deposits approval could lead to similar and successive steps of $3.9 million. However, a large portion of its to preempt new banking sites before others can deposits are expected to be derived from the transafford to compete therefor, resulting in even greater concentration of banking power in Milwaukee than i Application of Nortnwest Bancorporation, 44 Federal Reserve Bulletin 11, 12 (1958). now exists. I would deny the application. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements FUNCTIONAL REORGANIZATION aminer in the Division of Examinations, was ap­ pointed Assistant Director of the Division of Su­ The Board of Governors announced a reorgani­ pervision and Regulation with responsibility for zation, effective July 14, 1968, of functions involv­ bank holding company matters. Mr. Lyon was ing principally two divisions of its staff. Pursuant employed by the Board of Governors in 1941 and to this reorganization the Division of Examinations joined the Division of Examinations in 1952. will be known as the Division of Supervision and Regulation while the Division of Bank Operations CHANGES IN THE BOARD'S STAFF will become the Division of Federal Reserve Bank The Board of Governors announced the appoint­ Operations. ment of Bernard Shull as an Assistant Adviser in The Division of Supervision and Regulation— the Division of Research and Statistics, effective Frederic Solomon, Director—is assigned the re­ July 14, 1968. Mr. Shull joined the Board’s staff sponsibilities relating to securities credit regulation in 1965 as a Senior Economist in the Banking and truth-in-lending regulation. The Division will Section and since May 1967 had been serving as continue to coordinate the commercial bank su­ the Chief of the Banking Markets Section. pervisory functions of the Federal Reserve System Mr. Clarke L. Fauver, an Assistant to the Board and to review examinations of State member banks since 1959, resigned on June 27 to accept a posi­ by the Federal Reserve Banks, to administer Regu­ tion as Deputy Director of the Office of Federal lation F relating to securities of State member Home Loan Bank Operations with the Federal banks, and to process for action by the Board ap­ Home Loan Bank Board. plications relating to such matters as bank mergers, Mr. Karl E. Bakke, an Assistant Secretary to the bank holding companies, branches, and foreign Board, resigned on June 22, to accept a position as banking corporations. Attorney-Adviser in the Office of the General Examination of the Federal Reserve Banks, in­ Counsel, Department of Commerce. cluding relationships with the Audit Departments of those Banks, is being assigned to the Division of DEATH OF DIRECTOR Federal Reserve Bank Operations—John R. Far­ Mr. Kenneth H. Peters, president, The First rell, Director—in order to unify the responsibility State Bank of Larned, Kansas, who had served as at staff level for Board supervision of the Reserve a Class A director of the Federal Reserve Bank of Banks. The Division will continue to perform the Kansas City since August 31, 1965, died on June duties heretofore assigned to the Division of Bank 13, 1968. Operations. In connection with this reorganization, the fol­ APPOINTMENT OF DIRECTOR lowing staff assignments and promotions were an­ The Board of Governors of the Federal Reserve nounced: Tynan Smith, Associate Adviser in the System announced the appointment, effective Sep­ Division of Research and Statistics, was assigned tember 1, 1968, of President Phillip R. Shriver of temporarily as Acting Assistant Director of the Miami University, Oxford, Ohio, as a director of Division of Supervision and Regulation with re­ the Cincinnati Branch of the Federal Reserve Bank sponsibility for truth-in-lending regulation. of Cleveland for the unexpired portion of a term Janet Hart, presently Senior Attorney in the Le­ ending December 31, 1969. As a director of the gal Division, was named Assistant Director of the Cincinnati Branch he will succeed President John Division of Supervision and Regulation with re­ N. Stauffer of Wittenberg University, Springfield, sponsibility for securities credit regulation. Miss Ohio, who has resigned effective August 31, 1968. Hart joined the Board’s staff in 1958 as an attorney. BENCHMARK PRODUCTION INDEXES John N. Lyon, presently Supervisory Review Ex­ Final benchmark production indexes for manufac- 651 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN □ JULY 1968 turing for the year 1963 relative to 1958 and 1954, a $600 million increase in its reciprocal currency as first announced in the June 1967 Bulletin, page arrangement with the Bank of France—bringing 954, are scheduled for publication in early August. the total to $700 million. For this purpose output measures have been de­ The increase enlarges the System’s “swap net­ veloped for about 600 individual industries and work” with 14 central banks and the Bank for groups of industries with value-added weights and International Settlements to $9,955 billion. Other with various special-purpose weighting structures, reciprocal currency arrangements are: Austrian National Bank, $100 million; National Bank of including gross value of shipments, employment, Belgium, $225 million; Bank of Canada, $1 billion; and energy use. Indexes of output per kilowatt National Bank of Denmark, $100 million; Bank hour of electricity (energy use), output per man­ of England, $2 billion; German Federal Bank, $1 hour (labor productivity), and of payroll per unit billion; Bank of Italy, .$750 million; Bank of Japan, of output (labor cost) will be presented using both $1 billion; Bank of Mexico, $130 million; Nether­ value-added and special-purpose weights. lands Bank, $400 million; Bank of Norway, $100 The indexes are a product of joint efforts by the million; Bank of Sweden, .$250 million; Swiss Na­ staffs of the Bureau of Census and the Board of tional Bank, $600 million; Bank for International Governors of the Federal Reserve System. The title Settlements: Swiss francs/dollars, $600 million, of the publication is 1963 Census of Manufactures: and other European currencies/dollars, $1 billion. Volume 4, Indexes of Production (183 pages, The arrangement between the Bank of France $2.75), and it may be purchased from the Super­ and the Federal Reserve was the first negotiated intendent of Documents, U.S. Government Print­ when the network was established in 1962. In all ing Office, Washington, D.C. 20402. reciprocal currency arrangements the Federal Re­ serve Bank of New York acts on behalf of the RECIPROCAL CURRENCY ARRANGEMENTS Federal Reserve System under the direction of the On July 10, 1968, the Federal Reserve announced Federal Open Market Committee. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication July 16 Industrial production and retail sales changed little tailed aluminum output, because of work stoppages in June. Nonfarm employment increased moder­ and small declines in output of some nondurable ately but the unemployment rate rose to 3.8 per materials. cent. Commercial bank loans, the money supply, EMPLOYMENT and time and savings deposits increased further. Yields on U.S. Government securities declined con­ Nonfarm payroll employment rose moderately in siderably after mid-June and yields on corporate June as continued advances in services, State and and municipal bonds fluctuated in a narrow range. local government, and nondurable goods manu­ facturing were partly offset by a substantial decline INDUSTRIAL PRODUCTION in construction. The average workweek of manu­ facturing production workers was 40.9 hours, un­ Industrial production in June was 164.4 per cent of changed from the revised May level, and was half the 1957-59 average as compared to the revised an hour higher than a year earlier. The unemploy­ May figure of 164.1 and 155.6 a year earlier. In ment rate rose from 3.5 per cent to 3.8 per cent June, output of consumer goods and defense equip­ in June, the highest since last November. Young ment increased, while production of business equip­ persons entering the labor force at the close of ment and materials was unchanged. school accounted for the rise. Auto assemblies, at an annual rate of 9.4 million units, were up slightly from May. Output schedules DISTRIBUTION for July, after allowance for the model changeover The value of retail sales in June was about un­ period, are set at about the June rate. Production of changed from May and 6 per cent above a year some household goods and consumer staples rose earlier. Sales at durable goods stores were up 1 moderately and output of appliances and television per cent in June, with increased sales by the auto­ sets changed little. Production of industrial and motive group—deliveries of new domestic cars commercial equipment was about unchanged but were at an annual rate of 8.8 million units—more output of trucks increased further. Among materi­ than offsetting declines at other durable goods als the rise in steel production was offset by curstores. Sales at nondurable goods stores were un­ changed. Industrlal production COMMODITY PRICES The wholesale commodity price index increased by an estimated 0.2 per cent from mid-May to mid­ June, as industrial commodities resumed their up­ ward movement although at a much slower pace than last winter. Prices of foods and foodstuffs were about unchanged, following a sharp spurt in May. Since mid-June, price increases have been an­ nounced for crude oil, tires, and telephone equip­ ment, while steel scrap and some copper products have declined further. Prices of livestock products have increased somewhat further, but grain prices have declined. AGRICULTURE F.R. indexes, seasonally adjusted. Latest figures shown are for June. Another bumper harvest is indicated by the July 1 653 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN □ JULY 1968 survey, with, record crops for wheat, rice, soybeans, posits increased $500 million in June—about the and sugar in prospect. Feed grain and hay crops are same as in April and May but only half the aver­ expected to be 3 to 4 per cent less than last year’s age monthly expansion of the first quarter. Hold­ record because of smaller plantings. With acreage ings of large negotiable CD’s continued to decline, sharply expanded, cotton is expected to exceed the while savings deposits and consumer-type time de­ very small 1967 crop. posits rose moderately further. Net borrowed reserves averaged $385 million over the 4 weeks ending June 26, about the same BANK CREDIT, DEPOSITS, AND RESERVES as the average for May. Both member bank bor­ Commercial bank credit increased slightly in June rowings and excess reserves remained close to the following an average monthly rise of $2.1 billion May levels. earlier in the year. Total loans rose moderately as SECURITY MARKETS expansion in business, real estate, and consumer loans continued. However, holdings of U.S. Gov­ Yields in all maturity areas of the U.S. Govern­ ernment securities declined somewhat, following ment securities market have declined considerably substantial expansion in May, associated principally since mid-June, largely in reaction to enactment of with the mid-month Treasury financing. Bank hold­ the fiscal restraint package. The 3-month Treasury ings of municipal and agency issues were about un­ bill was bid at around 5.40 per cent in mid-July, changed on balance. Earlier in the year, acquisi­ down about a quarter of a percentage point from tions of these securities had been relatively substan­ a month earlier. tial. Between mid-June and mid-July, yields on cor­ The money supply increased $1.1 billion in June, porate and municipal bonds fluctuated in a fairly somewhat less than in May. U.S. Government de­ narrow range, and declined slightly on balance. posits increased slightly after declining sharply Common stock prices reached a new high in mid­ earlier in the second quarter. Time and savings de­ July. Interest rates Discount rate, range or level for ail 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 July 5. 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 and margin requirements A-ll Maximum interest rates; bank deposits A-12 Federal Reserve Banks A-14 Open market account A-15 Reserve Banks; bank debits A-16 U.S. currency A-17 Money supply; bank reserves A-18 Banks and the monetary system A-19 Commercial and mutual savings banks, by classes A-23 Commercial banks A-26 Weekly reporting banks A-30 Business loans of banks A-31 Interest rates A-33 Security markets A-34 Stock market credit A-35 Open market paper A-35 Savings institutions A-37 Federally sponsored credit agencies A-38 Federal finance A-40 U.S. Government securities A-43 Security issues A-46 Business finance A-48 Real estate credit A—52 Consumer credit Continued on next page A-l Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-2 FEDERAL RESERVE BULLETIN □ JULY 1968 U.S. STATISTICS—Continued A-56 Industrial production A-60 Business activity A-60 Construction A-62 Labor force, employment, and earnings A-64 Consumer prices A-64 Wholesale prices A-66 National product and income A-68 Flow of funds INTERNATIONAL STATISTICS: A-70 U.S. balance of payments A-71 Foreign trade A-72 U.S. gold transactions A-73 U.S. gold stock; position in the IMF A-74 International capital transactions of the United States A-86 Gold reserves of central banks and governments A-87 Gold production A-88 Money rates in foreign countries A-89 Arbitrage on Treasury bills A-90 Foreign exchange rates A-97 INDEX TO STATISTICAL TABLES Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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> H, ' 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................................. May 1968 A-66 Banking and monetary statistics, 1967 Mar. 1968 A-88—A-9S May 1968 A-89—A-93 Banks and branches, number, by class and State............................ Apr. 1968 A-87 Semiannually Banking offices: Flow of funds (assets and liabilities): Analysis of changes in number of... Feb. 1968 A-90 1966..................................................... Feb. 1968 A-65.10 On, and not on, Federal Reserve 1967..................................................... May 1968 A-67.10 Par List, number........................... Feb.1968 A-91 Income and expenses: Federal Reserve Banks.................. Feb. 1968 A-88 Member banks: Annually Calendar year.............................. May 1968 A-94 Operating ratios............................. Apr. 1968 A-89 Bank holding companies: Insured commercial banks. ........ May 1968 A-103 List, of Dec. 31, 1967..................... June 1968 A-91 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 □ JULY 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 Treas­ than member bank Member bank Period Cur­ reserves, reserves d o a r t e T U o .S ta . l Go B v r o o i t g u u , h g t s ­ t h e t c u R r m c a i e h g t e i p a r e n e s u s t e e s r 1 ­ ­ 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 o c e t u i a n u n u r n g c r y t ­ ­ d y ­ r c t e c u i i n o i n l r c n a ­ y ­ T h c i r u n o a e r g s l a y d h s s ­ ­ T u r w e ry a it s h ­ F F e .R i o g . r n ­ Ba O nk th s er2 c O F a o c . u t R ­ h n e . t s r B W F a . n R it k h . s c r C e a o n 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 65224,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16,027 1950—Dec......... 20,345 20,336 9 142 1,11721,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 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 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 2,434 36,610 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 2,383 46,864 13,158 6,284 44,579 1,191 291 164 429 83 19,568 4,262 23,830 1967—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 1,42348,210 13,053 6,665 45,011 1,488 1,036 128 453 212 19,600 4,191 23,791 Sept......... 46,398 46,377 21 90 1,571 48,147 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 11,983 6,783 46,389 1 ,393 1,011 157 481 -566 21,188 4,646 25,834 Feb......... 48,930 48,734 196 361 1 ,515 50,873 11,900 6,791 45,854 1 ,336 1,021 143 457 -512 21,265 4,345 25,610 Mar......... 49,511 49,452 59 682 1,599 51,863 11,096 6,798 46,138 I ,215 916 165 506 -536 21,354 4,226 25,580 Apr......... 50,090 49,943 147 698 I ,641 52,509 10,484 6,797 46,642 1,122 738 167 538 -598 21,181 4,365 25,546 May........ 50,581 50,329 252 759 1 ,58052,998 10,452 6,794 46,873 1 ,073 1 ,059 159 483 -581 21,179 "4,325 "25,504 June........ 5(,306 51,160 146 705 1 ,71253,813 "10,369 "6,744 "47,466 "973 960 181 471 -474 21 ,350 "4,355 "25,705 Week ending- 1967 June 7..4..5...,.9..5..5.. 45,869 86 102 1,321 47,478 13,109 6,590 44,438 1,380 734 131 459 835 19,200 3,976 23,176 14.............. 45,596 45,596 68 1 ,38047,118 13,108 6,598 44,600 1,380 471 131 450 609 19,183 4,030 23,213 21.............. 45,654 45,587 67 116 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 July 5 .............. 46,809 46,755 54 366 1,231 48,543 13,110 6,614 44,856 1,464 1,088 148 508 360 19,841 4,043 23,884 12.......... 47,158 47,101 57 74 1,70449,097 13,110 6,610 45,256 1,479 1,073 134 484 470 19,921 4,145 24,066 19.............. 46,471 46 471 53 1 ,84748,455 13,109 6,603 45,085 1,477 1,021 128 484 380 19,592 4,297 23,889 26.............. 46,715 46,715 54 1,63248,479 13,109 6,616 44,864 1,485 1 ,188 116 468 368 19,716 4,305 24,021 46,833 46,833 119 1 ,43948,470 13,094 6,632 44,849 1,473 1 ,390 115 464 250 19,655 4,319 23,974 9.............. 46,931 46,804 127 91 1 ,385 48,536 13,057 6,642 44,985 1,480 920 128 457 226 20,038 3,922 23,960 (6............. 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 ,495 697 133 471 110 19,932 3,993 23,925 13............. 46,207 46,207 70 1,54447,880 13,007 6,726 45,398 1 ,483 202 126 491 103 19,810 4,229 24,039 20.............. 46,055 46,055 106 1 ’75447,971 13,007 6,739 45,223 1 '487 362 126 473 24 20,021 4^95 24,316 27.............. 46,452 46,452 74 1 *53048,193 13,006 6,759 45,044 1 1502 927 129 454 37 19,865 4,347 24,212 46,976 46,976 144 1,495 48,773 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 1,087 119 455 -210 20,210 4,339 24,549 47,220 47,220 80 1 ,28948,643 (2,978 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 1,54850,117 12,908 6,785 46,347 1,457 1 ,570 175 432 -345 20,176 4,482 24,658 For notes see opposite page. 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JULY 1968 □ 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 Treas­ than member bank Member bank P d e o a ri t r o e d T U o .S ta . l Go B v r o i o t g u , u h t g s ­ t e h c t u a R m r c g i e h t e r i p a n e e s u s e t e s r ! ­ ­ c v D o a a a n n u d i c n d s ­ e ­ t s s Float 2 t T al o ­ 3 s G to o c ld k s r o c e t u i a n u n u r n g r y c t ­ ­ d y ­ r c t e C c u i i n o i n l u r c a n ­ r y ­ ­ T h c i r u o n a e r g l s a y d h s s ­ ­ T u r w e ry a it s h ­ F r F e e .R i s o g e . r n r ­ v B e a s O n , k th s ers c O o F t a u h . c n R e ­ t r . s B W F a . n R it k h . s r c e r C o s a e e i n u n n r d c r v ­ y e 4 s Total Averages of daily figures Week ending— 1967 Dec. 6.............. 48,902 48,719 183 87 1,65550,721 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 2,15551,119 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 2,38851,785 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 2,33552,286 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 4,646 25,911 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 4,675 25,571 24............. 49,105 49,105 233 1 ,72651,186 11,982 6,784 46,117 1,390 939 149 471 -459 21,346 4,576 25,922 31 .............. 48,970 48,936 34 241 1 ,44950,751 11,983 6,786 45,763 1,391 1 ,096 161 467 -426 21,069 4,603 25,672 Feb, 7............. 49,344 48,925 419 241 1 ,451 51,099 11,954 6,788 45,777 1,361 912 142 450 -554 21 ,752 4,169 25,921 14............. 49,210 48,815 395 384 1 ,26750,949 11,882 6,788 45,942 1 ,343 1 ,071 137 462 -608 21,272 4,258 25,530 21.............. 48,443 48,443 405 1 ,73450,643 11,882 6,792 45,881 1 ,333 1,051 140 455 -453 20,911 4,364 25,275 28............. 48,724 48,724 .......... 442 1 ,55650,779 11,883 6,796 45,817 1,319 1,022 147 461 -444 21,137 4,499 25,636 Mar. 6............. 49,077 49,019 58 501 1 ,72951,363 11,883 6,797 45,832 1,301 992 152 489 -418 21,695 4,102 25,797 13............. 49,278 49,166 112 787 1,47351,595 11,609 6,795 46,205 1,275 1 ,008 122 478 -474 21 ,386 4,162 25,548 20.............. 49,840 49,840 748 1 ,66852,312 10,872 6,801 46,233 1,224 1 ,059 166 505 -609 21,406 4,266 25,672 27.............. 49,621 49,621 .......... 597 1 ,53451,855 10,484 6,800 46,153 1,129 844 205 465 -597 20,941 4,385 25,326 Apr. 3............. 49,843 49,634 209 711 1,44952,103 10,484 6,798 46,358 1,126 537 182 653 -579 21,109 4,354 25,463 10............. 50,153 49,950 203 661 1,63752,570 10,484 6,797 46,647 1,119 521 168 582 -555 21,369 4,065 25,434 17............. 50,219 49,952 267 778 1,80452,871 10,484 6,799 46,901 1,126 422 148 534 -667 21,691 4,399 26,090 24.............. 49,927 49,927 .......... 666 1,841 52,490 10,484 6,797 46,608 1,124 1,038 160 487 -594 20,950 4,553 25,503 May 1.............. 50,238 50,103 135 689 1,461 52,458 10,484 6,797 46,481 1,121 1 ,073 194 490 -601 20,980 4,538 25,518 8.............. 50,617 50,200 417 837 1,46753,030 10,484 6,796 46,668 1,109 935 148 482 -684 21,652 4,046 25,698 15............. 50,521 50,069 452 725 1,49352,819 10,484 6,794 46,920 1 ,082 1 ,080 132 499 -698 21,083 4,296 25,379 22.............. 50,549 50,402 147 682 1,861 53,162 10,470 6,795 46,908 1 ,058 1 ,228 145 486 -462 21,063 4,316 25,379 29.............. 50,589 50,589 .......... 777 1,501 52,923 10,384 6,794 46,937 1,053 1 ,076 165 463 -442 20,849 "4,456"25,305 June 5.............. 50,619 50,619 772 1 ,54052,985 10,382 6,796 47,254 1 ,042 784 309 477 -742 21,038 "4,301 "25,339 12............. 50,899 50,609 290 691 1,57653,242 10,367 6,794 47,506 1 ,004 856 157 457 -779 21,203 "4,201 "25,404 19............. 50,973 50,850 123 677 1,81253,537 10,367 6,782 47,574 982 1 ,072 146 451 -715 21 ,176 "4,409"25,585 26.............. 52,009 51 ,797 212 820 1 ,73754,685 10,367 6,722 47,440 947 1 ,063 161 481 13 2!,669 "4,533"26,202 End of month 1968 Feb. 48,952 48,952 166 1,88251,056 11,883 6,798 45,846 1 ,265 1,197 192 456 -415 21,195 4,948 26,143 Mar. 49,748 49,631 117 672 1,61752,127 10,484 6,791 46,297 I ,084 581 197 703 -593 21 ,133 3,936 25,069 Apr. 50,519 50,242 277 741 1 ,26552,612 10,484 6,790 46,621 1 ,070 1 ,035 140 489 -689 21,221 4,740 25,961 May 50,625 50,625 1 ,026 1 ,71453,421 10,384 6,790 47,202 990 956 422 490 -797 21,334"4,756"26,090 June ................. 52,230 52,230 .......... 305 1 ,941 54,610 10,367 "6,563 "47,444 "891 1 ,074 153 507 9 21,462 "4,062"25,524 Wednesday 1968 Apr. 3............. 50,299 49,753 546 670 1,41452,501 10,484 6,797 46,535 1,131 396 165 627 -561 21,489 4,597 26,086 10............. 49,875 49,875 335 1 ,81352,131 10,484 6,797 46,899 1,129 727 163 543 -556 20,507 4,611 25,118 17.............. 50,206 50,057 149 630 1 ,75252,644 10,484 6,798 46,871 1,130 499 1 16 527 -614 21,398 4,935 26,333 24.............. 49,310 49,310 709 1 ,41 1 51,486 10,484 6,797 46,540 1,131 1 ,585 158 485 -585 19,453 5,034 24,487 May 1.............. 50,910 50,242 668 728 1 ,501 53,254 10,484 6,795 46,612 1,112 732 165 504 -690 22,098 "4,783"26,881 8.............. 50,310 50,069 241 272 1,37652,059 10,484 6,792 46,903 1,103 1 ,265 133 480 -690 20,141 "4,460"24,601 15.............. 50,686 50,069 617 908 1 ,67853,352 10,484 6,794 47,015 1 ,068 1,146 154 503 -472 21,215 "4,825"26,040 22.............. 50,402 50,402 390 1 ,431 52,279 10,384 6,793 46,935 1 ,058 1 ,155 141 448 -467 20,186"4,800"24,986 29........... . 50,525 50,525 .......... 567 1 ,46652,611 10,384 6,792 47,228 1 ,044 950 191 459 -527 20,442"4,909"25,351 June 5.............. 50,686 50,686 432 I ,61752,787 10,367 6,796 47,473 1 ,015 396 164 470 -818 21,25! "4,519"25,770 12............. 51,457 50,742 715 539 1,57253,676 10,367 6,791 47,652 1 ,001 505 143 453 -866 21,945 "4,803"26,748 19............. 51,699 51 ,497 202 1 ,952 1 ,78055,534 10,367 6,781 47,622 973 1 ,177 160 459 -16 22,307 "4,880"27,187 26.............. 52,032 51 ,879 153 412 1,641 54,214 10,367 6,582 47,493 905 1 ,017 198 496 5 21,049 "5,024"26,073 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 □ JULY 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 r i o n w gs ­ F r r e e ­ e r i o n w gs ­ F r r e e ­ e r i o n w gs ­ F r r e e ­ e T h o el t d al qu R ir e e ­ d Excess B F a a . n R t k . s serves T h o el t d al qu R ir e e ­ d Excess B F a . a n R t k . s serves T h o el t d al qu R ir e e ­ d Excess B F a a . n R t k . s serves 1929—June............ 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 I 63 -62 1933—june ........ 1 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 (939—Dec............ 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec.............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec.............. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec.............. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 I,OU 13 6 7 (950—Dec............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 I960—Dec............. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 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 t ,051 5 26 -21 1964—Dec............. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1 ,083 1 ,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 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 23,791 23,404 387 89 298 4,633 4,619 14 8 6 1,153 1,148 5 1 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 25,834 25,453 381 237 144 5,170 5,131 39 48 -9 1,231 1,230 1 3 -2 Feb.............. 25,610 25,211 399 361 38 5,060 5,011 49 106 -57 1 ,22! I ,215 6 4 2 25,580 25,224 356 671 -315 5,149 5,063 86 99 -13 1,176 1,169 7 66 -59 25,546 25 ,276 270 683 -413 4,993 4,985 8 67 -59 1,159 1,160 -1 104 -105 May........... ”25,504 ”25,087 ”417 746 ”-329 ”4,905 ”4,871 ”34 68 ”-34 ”1 ,163 ”1,151 ”12 76 *-64 ”25,700”25'356 ”344 692 ”-348 ”5,120 ”5,030 ”91 69 ”22 ”1,145 ”1,150 ”-5 38 ”-43 Week ending—■ 1967—June 7.... 23,176 22,845 331 77 254 4,592 4,563 29 7 22 1,139 1 ,134 5 5 14. 23,213 22,858 355 43 312 4,565 4,551 14 14 i; io3 1,101 2 2 21 . 23,767 23,506 261 91 170 4,874 4,865 9 27 -18 1,157 1,159 -2 9 -11 28 23,547 23,116 431 141 290 4,677 4,663 14 14 1 ,156 1 ,150 6 2 4 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—Jan. 3.... 26,448 25,795 653 495 158 5,460 5,362 98 166 -68 1,313 1,299 14 54 -40 10. . 25,911 25,347 564 180 384 5,110 5 ,097 13 69 -56 1,221 1 ,226 -5 -5 17. ... 25,571 25,414 157 224 -67 5^99 5^079 20 53 -33 1,220 1,214 6 8 -2 24 25,922 25,546 376 233 143 5,149 5,130 19 19 1 ,231 1 ,226 5 2 3 31^/ 25,672 25,336 336 241 95 5,130 5,108 22 32 -10 1 ,226 1,223 3 1 2 Feb. 7. ... 25,921 25,546 375 241 134 5,218 5,189 29 6 23 1 ,252 1 ,245 7 I 6 14. ... 25,530 25,042 488 384 104 5,029 4,895 134 154 -20 1 ,194 1,195 -1 2 -3 21 . 25,275 24,896 379 405 -26 4,949 4,920 29 145 -116 1 ,196 1,188 8 8 28.... 25,636 25,323 313 442 -129 5,032 5,030 2 133 -131 1,242 1 ;231 11 6 5 Mar. 6. ... 25,797 25,481 316 500 -184 5,204 5,167 37 1 36 1 ,237 1 ,238 -1 96 -97 13 . 25,548 25,090 458 779 -321 5,094 4,963 131 250 -119 1,149 1,137 12 14 -2 20.... 25,672 25,258 414 733 -319 5,146 5,108 38 159 -121 1 ,166 1,170 -4 32 -36 27.... 25,326 25,165 161 582 -421 5,034 5,044 -10 29 -39 1,165 1 ,153 12 50 -38 Apr. 3 . ... 25,463 25,132 331 696 -365 5,082 5,044 38 38 1,142 1,140 2 123 -121 10. ... 25,434 25,028 406 646 -240 4,992 4,858 134 127 7 I J38 1,126 12 26 -14 17.... 26,090 25,563 527 763 -236 5,085 5,068 17 47 -30 1,188 1 ,183 5 255 -250 24.... 25,503 25,377 126 651 -525 5,020 5,023 -3 49 -52 1,165 1,154 11 109 -98 May 1 . ... 25,518 25,242 276 674 -398 5,014 4,975 39 63 -24 1 ,200 1,197 3 52 -49 8. ... 25,698 25,317 381 823 -442 5,023 4,958 65 64 1 1,198 1,194 4 220 -216 15. 25,379 24,979 400 712 — 312 4,786 4,774 12 124 -112 1,139 1,139 49 -49 22 25,379 25,057 322 669 -347 4,900 4,848 52 52 1,150 1J42 8 23 -15 29^.\ ”25,305 ”24,935 ”370 764 ”-394 ”4,865 ”4,846 ”19 79 ”-60 ”1,134 ”1,130 ”4 19 ”-15 June 5.... ”25,339”25,122 *217 759 *-542 *5,024 ”5,001 ”23 79 ”-56 *1,155 ”1,147 ”7 18 *-11 12.... ”25,404”25,081 ”323 678 ”-355 ”4,932 ”4,909 ”23 36 ”-13 ”1,123 ”1,125 ” —1 20 ”-21 19.... ”25,585 ”25,324 ”261 664 ”-403 ”5,067 ”5,023 ”44 99 ”-55 ”1,138 ”1,130 ”8 61 ”-53 26. ... ”26,202*25,636 ”566 807 *-241 ”5,146 ”5,106 ”40 92 ”-52 ”1,175 ”1,175 V 42 ”-42 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 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 Reserves Borrow­ Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves Banks Banks T h o e t ld 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 ...........................1933—June 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ...........................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ................... 1945—Dec. 6,861 6,589 271 123 148 4,972 4,375 597 57 540 ...........................1947—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ...........................1950—Dec. 7,950 7,851 I0O 20 80 6,689 6,066 623 40 583 ..........................1960—Dec. 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 ...........................1962—Dec. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 ...........................1963—Dec. 8,735 8,713 22 125 -103 7,707 7,337 370 55 315 ...........................1964—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 ...........................1965—Dec. 9,509 9,449 61 220 -159 8,619 8,318 301 161 140 ...........................1966—Dec. 9,381 9,314 67 34 33 8,285 7,983 302 44 258 ...........................1967—June 9,564 9,542 22 10 12 8,403 8,095 308 54 254 ........................................July 9,557 9,509 48 32 16 8,448 8,129 319 48 271 ........................................Aug. 9,649 9,623 26 32 -6 8,582 8,304 278 47 231 ........................................Sept. 9,878 9,860 18 42 -24 8,648 8,402 246 55 191 ........................................Oct. 9,900 9,835 65 51 14 8,823 8,540 283 61 222 ........................................Nov. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 ........................................Dec. 10,314 10,283 31 111 -80 9,120 8,809 311 75 236 ...........................1968—Jan. 10,271 10,218 53 126 -73 9,057 8,766 291 125 166 ........................................Feb. 10,247 10,212 35 288 -253 9,009 8,780 229 218 11 ........................................Mar. 10,298 10,272 26 283 -257 9,097 8,859 238 229 9 ........................................Apr. *40,265 *10,195 *69 262 *-193 *9,171 *8,869 *301 340 *-39 7-10,274 *10,239 *35 258 *-223 *9,161 *8,937 *224 327 *-103 Week ending— 9,274 9,232 42 19 23 8,171 7,916 255 51 204 9,260 9,227 33 8 25 8,285 7,979 306 35 271 ............................................14 9,456 9,437 19 35 -16 8,281 8,044 237 20 217 ...........................................21 9,363 9,331 32 75 -43 8,352 7,973 379 64 315 ............................................28 9,969 9,947 22 22 8,749 8,523 226 65 161 9,882 9,844 38 69 -31 8,847 8,572 275 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 10,243 10,207 36 59 -23 9,338 8,817 521 52 469 ............................................10 10,357 10,340 17 97 -80 8,895 8,781 114 65 49 ...........................................17 10,352 10,318 34 157 -123 9,189 8,871 318 74 244 ............................................24 10,276 10,235 41 90 -49 9,040 8,770 270 118 152 ...........................................31 10,374 10,334 40 97 -57 9,078 8,780 298 137 161 ..................................Feb. 7 10,254 10,155 99 96 3 9,053 8,799 254 132 122 ............................................14 10,089 10,077 12 168 -156 9,041 8,711 330 84 246 ...........................................21 10,341 10,292 49 150 -10! 9,022 8,770 252 153 99 ...........................................28 10,346 10,308 38 234 -196 9,01! 8,768 243 169 74 .......................... Mar. 6 10,238 10,172 66 328 -262 9,066 8,818 248 187 61 ............................................13 10,202 10,181 21 312 -291 9,158 8,799 359 230 129 ...........................................20 10,239 10,201 38 237 -199 8,888 8,767 121 266 -145 ............................ 27 10,261 10,222 39 321 -282 8,978 8,726 252 252 ..................................Apr. 3 10,293 10,235 58 184 -126 9,01! 8,808 203 309 -106 ............................................10 10,405 10,367 38 307 -269 9,412 8,944 468 154 314 ............................................17 10,300 10,267 33 316 -283 9,018 8,933 85 177 -92 ...........................................24 10,290 10,263 27 302 -275 9,014 8,808 206 257 -51 ..................................May 1 10,348 10,298 50 253 -203 9,130 8,867 263 286 -23 .......................................... 8 10,230 10,169 61 248 -187 9,225 8,898 327 291 36 ............................................15 10,243 10,188 55 259 -204 9,086 8,878 208 387 -179 ...........................................22 *10,146 *10,119 *27 278 *-251 *9,159 *8,840 *320 388 *-68 ...........................................29 *10,178 *10,138 *40 294 *-254 *8,982 *8,835 *148 368 *-220 ...................................June 5 *10,181 *10,150 *32 278 p-246 *9,168 *8,897 *271 344 p-73 ............................................12 *10,236 *10,210 *26 164 * -138 *9,14! *8,961 *180 340 *-160 ............................................19 *10,409 *10,369 *40 340 *-300 *9,472 *8,986 *485 333 *152 ...................................... 26 t This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-8 MAJOR RESERVE CITY BANKS a JULY 1968 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less—■ Net— Gross transactions Net transactions Reporting banks and Bor­ week ending—■ s E er x r v c e e e ­ s s s J r a o t B w F o in . r R ­ gs . F i e b n N d a t n e e e r r t k ­ a l Su o rp r l us r P e e q a r v o u c g i f r e . e n d t ch P a u s r e ­ s Sales ac 2 t T r t - i a o w o n t n a a s s y - l 2 b c o u h P f y a u n s i r n e e ­ g s t s o S e f l a l l n i e n e s g t d L ea o t l a o e n r s s 3 de f r i r a o n o l w g e m s r ­ s 4 lo N a e n t s Banks funds deficit reserves banks banks trans. Total—46 banks J 968—May 1 ....... 40 167 768 -895 7.9 2,781 2,013 1,386 1 ,395 627 1,235 127 1,107 8............ 91 362 1,362 -1.633 14.4 3,417 2,055 1 ,597 1 ,819 458 1,113 173 941 15 50 221 1,469 -1,641 14.9 3,596 2,127 1 ,507 2,089 620 896 270 627 22............ 84 139 1 ,309 -1,364 12.3 3,417 2,108 1,531 1 ,886 577 941 280 661 29............ 27 211 411 -595 5.4 3,048 2,637 I ,579 1 ,469 1 ,058 673 286 387 June 5............ 55 257 871 -1,074 9.6 3,357 2,485 1 ,822 1 ,535 664 1,155 319 835 12............ 27 214 1 ,149 -1,336 12.0 3,252 2,103 1 ,464 1 ,788 639 1 ,085 344 741 19............ 56 187 1 ,537 -1,668 14.8 3,632 2,095 1 ,807 1,825 288 1,151 291 861 26............ 46 300 1 ,026 -1 ,280 11.1 3,426 2,400 1 ,827 1,599 573 894 340 554 8 in New York City 1968—May 1............ 22 60 582 -621 13.7 1 ,093 510 510 582 683 60 623 8............ 53 64 696 -707 15.7 1 ,405 709 700 705 9 639 64 575 15............ 10 123 781 -894 20.6 1 ,438 657 657 781 575 64 511 22............ 39 431 -392 8.9 1 ,215 784 647 568 137 571 74 497 29............ 8 77 65 -135 3.0 1,153 1,087 742 411 345 465 80 384 June 5............ 23 ’ 75 320 -372 8.1 1,164 844 787 377 57 786 101 684 12 16 36 447 -467 10.4 1 ,255 808 671 584 137 735 116 620 19............ 35 93 640 -698 15.2 1 ,399 759 739 660 20 819 85 734 26............ 25 84 516 -574 12.3 1 ,346 831 791 555 39 675 134 542 38 outside New York City 1968—-May 1............ 18 107 186 -274 4.0 1,688 1,503 876 813 627 551 67 484 8............ 38 298 666 -926 13.6 2,011 1 ,345 897 1,114 448 475 109 366 15............ 40 99 688 -747 1 1.2 2,157 1 ,470 850 1 ,307 620 322 206 116 22............ 45 139 878 -972 14.6 2,202 1 ,323 884 1 ,318 440 369 206 163 29............ 19 134 345 -460 6.9 1 ,895 1 ,550 837 1 ,058 713 209 206 3 June 5............ 32 (82 551 -702 10.5 2,193 1 ,642 1 ,035 1,158 607 369 218 151 12............ I I 178 701 -869 13.1 1 ,997 1 ,296 793 1 ,204 502 350 229 121 19............ 21 94 897 -970 14.5 2,233 1 ,336 1 ,068 1,165 268 333 206 127 26............ 21 216 510 -705 10.3 2,079 1 ,569 1 ,036 1 ,044 534 218 206 12 5 in City of Chicago 1968—May 1............ 2 36 130 -164 IS.1 404 274 217 187 57 32 32 8 2 198 366 -561 51.6 588 222 222 366 15............ 26 459 -486 46.9 647 187 187 459 4 4 22............ 6 17 367 -377 36,3 608 242 242 367 29............ 3 .............. 255 -252 24.6 502 247 247 255 .............2 .............2 June 5............ 4 205 -200 19.2 534 329 309 224 20 8 8 12 -3 192 -196 19. 1 493 301 245 248 56 19 5 46 263 -304 29,6 545 282 264 282 19 4 4 26............ 1 32 280 -312 29.1 524 243 230 294 13 2 2 33 others 1968—May 1............ 16 71 56 -110 1.9 1 ,285 1,229 659 626 570 519 67 452 8............ 36 100 300 -364 6.4 1 ,423 1,123 675 749 448 475 109 366 15............ 40 72 228 -261 4.6 1 ,510 1 ,282 663 848 620 318 206 112 22............ 38 122 511 -595 10.6 1 ,593 1 ,082 642 951 440 369 206 163 29............ 16 134 90 -208 3.7 1 ,393 1 ,303 591 803 713 207 206 June 5............ 27 182 347 -501 8.9 1 ,659 1 ,313 725 934 587 362 218 (43 12............ 14 178 509 -674 12.0 1 ,504 995 549 955 446 350 229 121 19............ 16 48 634 -666 11.8 1 ,688 1 ,054 805 883 249 329 206 123 26............ 20 183 230 -393 6.8 1 ,556 I ,326 806 750 520 217 206 10 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

JULY 1968 □ DISCOUNT RATES A-9 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 133 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous June 30 date rate June 30 date rate June 30 date rate Boston............................................ 514 Apr. 23,1968 5 6 Apr. 23 1968 51/2 Apr 23 1968 6 New York...................................... 514 Apr. 19, 1968 5 6 Apr. 19,1968 5*4 7 Apr. 19’ 1968 6 *,4 Philadelphia................................... 514 Apr. 19, 1968 5 6 Apr. 19,1968 5*4 6*4 Apr 19 1968 6 Cleveland........................ 514 Apr. 26, 1968 5 6 Apr. 26’ 1968 514 7 Apr. 26, 1968 6*4 Richmond...................................... 5 (4 Apr. 26, 1968 5 6 Apr. 26, 1968 5*4 6*4 Apr. 26, 1968 6 Atlanta........................................... 5*4 Apr. 22; 1968 5 6 Apr. 22^ 1968 514 6*4 Nov. 20 1967 6 Chicago............................................ 5*4 Apr. 26^ 1968 5 6 Apr. 26^ 1968 5*4 6*4 Apr. 26, 1968 6 St. Louis.......................................... 514 Apr. 23,1968 5 6 Apr. 23, 1968 5 *,4 6*4 Apr. 23, 1968 6 Minneapolis..................................... 5*4 Apr, 19' 1968 5 6 Apr. 19, 1968 5*4 6*4 Apr. 19 1968 6 Kansas City.................................... 5*4 Apr. 26,1968 5 6 Apr, 26,1968 5*4 Apr. 26, 1968 6 Dallas...................................... 514 Apr. 26, 1968 5 6 Apr. 26,1968 514 6*4 Apr. 26’ 1968 6 San Francisco................................. 514 Apr. 19,1968 5 6 Apr. 19,1968 514 614 Apr. 19, 1968 6 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 aU F.R. of Banks N.Y. Banks N.Y. Banks N.Y. 1955 1959 In effect Dec. 31, 1941..... 1 -l!4 1 114-1’4 • 14 214-3 3 ‘ 15............................. 154-1’4 1% 16............................. 3 3 1942 l’/4 114 May 29............................. 3 -314 ^ 1 1’4-254 !« June 12........................ 314 Oct 15 ..................... tr 1 ~ 5............................. 1’4-2% 314-4 4 30 t*4 12............................. 2 -2% 2 ‘ 18..........4...................4 May tu... A ... p . 1 . r . 9 . 4 .. 6 2 .. . 5 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....t.. ..5..^..-.1... 1 1 S N e o ' p v t . . 2 1 1 9 3 3 8 . . . . . . . . . . . . . . . . 1 . . . . . . . . 9 . . . . . . . 5 . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 ’4 2 2 - 5 - ’ 2 4 2 4 5 1 4 4 2^ Aug. 1 1 1 2 0 4 . . . . . . . . . . . . 1 . . . . . . 9 . . . . . . 6 . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ^ 3 3 3 - - 3 4 14 4 3 3 3 3 1 W 6 Apr. 13.....................2..5..4..-.3. ^n 1948 " 20............................. 2’4-3 1963 19... J .. a .. n .. .... 1 .. 2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......*.. ..p..J....M lit Aug ” , 2 3 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2’4 3 -3 3 3 July 17..................... ’ . ... 2 ... 6 . ....... 3 . ..3..1 - . 3 .4. 1 ... 4 ........... ^ V in 1964 “ 23................................. ~ 23.. A .. 1 u .. 9 g .. 5 , . . 7 . .. 9 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......3.. .. 3 ..- ’4 .3.14 3 3 *4 Nov. 2 3 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 4 4-4 4 4 1950 3 -314 3 1965 U4-l% in 3 3 4 -414 4H “ 25................................. 1’4 13............................. 414 4*4 23.... 1 .. 9 .. 5 . 3 ...................... ‘V 2 2 Mar. 2 2 1 7 1 4 3 . . . . . . . . J . . . . a . . . . 1 . . . . n . . . . 9 . . . . . . . . . 5 . . . . . . . . 8 . . . . 2 . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......2 2 .. 1 .M. 2 . 4 .- ’ . - 4 3. 2’4 3 1 Nov. 2 2 0 7. . . . . . . 1 . . . 9 . . . . 6 . . . . 7 . . . . . .. . .. . . . . . . . . ' . . . . . . . . . . . . . 1 . . . . . . 4 . . ...... 4 4 .. ..4 4 .. - - 1 . 4 4 . 4 . 1 1 .. 4 4 ............4 4 4 4 4 ^ 1’4-2’4 P 1968 1954 1’4 414-5 414 Feb. 5......................."..l..«.... I 1’4-2 22............................. 5 5 15............................... 1’4-2 Apr. 19............................. 5 -554 5*4 ‘ 23............................. 2 2 26............................. 5’4 5’4 r 16............................... Oct. 24............................. 2 -214 2 Nov. 7............................. 214 2*4 In effect June 30............. 5’4 5’4 t Preferential rate of one-half of 1 per cent for advances secured by against U.S. Govt, obligations was the same as its discount rate except U.S. Govt, obligations maturing in 1 year or less. The rate of 1 per cent in the following periods (rates in percentages): 1955—May 4-6, 1.65; was continued for discounts of eligible paper and advances secured by Aug. 4, 1.8 5; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.37 5; 1956—Aug. such paper or by U.S. Govt, obligations with maturities beyond 1 year. 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July Note.—Discount rates under Secs. 13 and 13a (as described in table 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, above). For data before 1942, see Banking and Monetary Statistics, 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, 1943, pp. 439-42. 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968—Apr. 4,5, 11, 15,16,5.125; The rate charged by the F.R. Bank of N.Y. on repurchase contracts Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 11-13, 19, 21, 24, 5.75. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-iu RESERVE AND MARGIN REQUIREMENTS □ JULY 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 Central Re- Coun- cl ( a a s l s l e s Effective date 1 city banks banks S in a g v s ­ time deposits reserve serve try of depos­ ba c n i k ty s 3 b c a i n ty k s banks banks) $ U 5 n m d i e l* r $ O 5 v m e i r l ­ $ U 5 n m de il r ­ $ O 5 v m e i r l ­ its $ U 5 n m de il r ­ $ 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........ 5 614 5 12 M 34 5 Sept. 8, 15........ 6 1951—Jan. 11,16............... 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2.............. 3ft 3ft 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........ 1614 17 12 1214 1958—Feb. 27, Mar. 1.... 19ft 171/z lift Mar. 20, Apr. 1.... 19 17 11 In effect June 30, 1968.. 1614 17 12 12>4 3 3 6 Apr. 17...................... 18^ Apr. 24..................... 18 i«4 Present legal 1960—Sept. 1...................... 1716 requirement: Nov. 24...................... 12 Minimum.................. I 0 7 3 3 3 Dec. 1...................... 16<4 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. MARGIN REQUIREMENTS (Per cent of market value) Effective date Regulation Apr. 23, Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, Mar. 11, June 8, 1955 1958 1958 1958 I960 1962 1963 1968 1968 Regulation T: For credit extended by brokers and dealers on: Listed stocks. ................................................ 70 50 70 90 70 50 70 70 80 50 60 For short sales...................................................... 70 50 70 90 70 50 70 70 80 Regulation U: For credit extended by banks on: Stocks,.............................................................. 70 50 70 90 70 50 70 70 80 Ronds convertible into listed stocks.................. 50 60 Regulation G: For credit extended by others than brokers and dealers and banks on: Usted stocks......................................................... 70 80 Ronds convertible into listed stocks.................. 50 60 Note.—Regulations G, T, and U, prescribed in accordance with Secu­ difference between the market value (100 per cent) and the maximum rities Exchange Act of 1934, limit the amount of credit to purchase and loan value. carry registered equity securities that may be extended on certain secu­ Regulation G and special margin requirements for bonds convertible rities by prescribing a maximum loan value, which is a specified percentage into stocks were adopted by the Board effective March 11, 1968, of its market value at the time of extension; margin requirements are the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A-ll MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1. 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, 1962 1963 1964 1965 1966 1966 1968 Savings deposits: 1 Savings deposits.............................. 4 4 4 12 months or more........................ 4 4 }4 4 Other time deposits: 2 Less than 12 months..................... 3ft 3ft Multiple maturity: 1 90 days or more........5............ 5 5 Other time deposits: 2 Less than 90 days.................... 4 4 4 (30-89 days) 12 months or more........................ 4 I 4 | 5ft Single-maturity: 6 months to 12 months................. 3ft 4ft Less than $100,000.............. 5ft 5 5 90 days to 6 months...................... 2ft $100,000 or more: Less than 90 days........................... 1 1 4 30-59 days............................ 5ft | 5ft (30-89 days) 9 6 0 0 - - 1 8 7 9 9 d d a a y y s. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • 5ft 5 6 % 180 days and over............... 6ft i Closing date for the Postal Savings System was Mar. 28, 1966. Max­ _ Note.—Maximum rates that may be paid by member banks as estab­ imum rates on postal savings accounts coincided with those on savings lished by the Board of Governors under provisions of Regulation Q; deposits. however, a member bank may not pay a rate in excess of the maximum 2 For exceptions with respect to certain foreign time deposits, see rate payable by State banks or trust companies on like deposits under Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, the laws of the State in which the member bank is located. Beginning p. l67- ... . . Feb. 1, 1936, the FDIC has established identical rates for non member 3 Multiple-maturity time deposits include deposits that are automati­ insured commercial banks. cally renewable at maturity without action by the depositor and deposits For rates before 1962 see Board’s Annual Reports. that are payable after written notice of withdrawal. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k l 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 A m n ll k b s er Y N o ew rk C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Apr. 24, 1968 Four weeks ending May 22, 1968 Gross demand—Total.... 159,111 33,162 6,722 57,984 61,244 Gross demand—Total... 158,848 33,417 6,922 57,532 60,977 Interbank...................... 17,495 6,041 1,317 7,911 2,228 Interbank.................. 17,057 6,122 1 ,183 7,641 2,110 U.S. Govt...................... 3,662 860 121 1 ,415 1,267 U.S. Govt................. 5,610 944 367 2,462 1 ,838 Other............................. 137,953 26,261 5,284 48,659 57,749 Other........................ 136,181 26,352 5,373 47,429 57,028 Net demand 1............ 125,389 23,387 5,183 45,157 51,663 Net demand i.................. 124,558 22,838 5,297 44,838 51 ,586 Time.................................. 152,117 19,863 5,725 58,052 68,477 Time................................. 152,236 19,563 5,671 58,115 68,887 Demand balances due Demand balances due from dom. banks.......... 8,581 418 297 2,024 5,843 from dom. banks..... 8,271 321 378 1 ,899 5,673 Currency and coin............ 4,343 380 78 1,353 2,531 Currency and coin. ..... 4,299 359 77 1 ,321 2,542 Balances with F.R. Balances with F.R. Banks........................... 21,280 4,665 1 ,080 8,962 6,574 Banks........................... 21,195 4,572 1,094 8,957 6,572 Total reserves held...... 25,623 5,045 1,158 10,315 9,105 Total reserves held......... 25,494 4,931 1,171' 10,278 9,114 Required....................... 25,275 4,998 1,151 10,274 8,853 Required.................... 25,149 4,889 1,168 10,230 8,863 Excess........................... 348 47 7 41 252 Excess....................... 345 42 3 48 251 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. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-12 FEDERAL RESERVE BANKS □ JULY 1968 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1968 1968 1967 June 26 June 19 June 12 June 5 May 29 June 30 May 31 June 30 Assets Gold certificate account................................................. 10,025 10,025 10,025 10,025 10,026 10,025 10,026 12,610 Cash................................................................................. 429 429 419 415 427 432 424 322 Discounts and advances: Member bank borrowings......................................... 399 1 ,939 526 419 554 292 1 ,013 53 Other............................................................................ 13 13 13 13 13 13 13 15 Acceptances: Bought outright.......................................................... 58 53 53 52 53 59 56 91 Held under repurchase agreements........................... 71 50 55 75 45 Federal agency obligations—’Held under repurchase agreements............................................................... 56 64 65 I U.S. Govt, securities: Bought outright: Bills......................,................................................... 18,123 17,848 17,093 17,037 16,876 18,380 16,976 14,006 Other................................................. 4,353 Notes....................................................................... 27,701 27,626 27,626 27,626 27,626 27,746 27,626 21,737 Bonds....................................................................... 6,055 6,023 6,023 6,023 6,023 6,104 6,023 6,538 Total bought outright................................................ 51,879 51,497 50,742 50,686 50,525 52,230 50,625 46,634 97 138 650 84 Total U.S. Govt, securities............................................ 51,976 51,635 51,392 50,686 50,525 52,230 50,625 46,718 Total loans and securities..................................... 52,573 53,754 52,104 51,170 51,145 52,669 51,707 46,923 Cash items in process of collection............................. 8,011 8,884 7,910 7,710 7,223 7,612 6,944 6,532 Bank premises................................................................ 113 113 1 13 113 112 113 113 109 Other assets: Denominated in foreign currencies...................... 1,016 1,016 1 ,831 1,964 1,619 1 ,009 1,926 578 IMF gold deposited 1................................................ 230 230 230 230 247 230 247 233 AU other...................................................................... 425 388 371 343 309 441 321 321 Total assets..................................................................... 72,822 74,839 73,003 71,970 71,108 72,531 71,708 67,628 Liabilities F.R. notes....................................................................... 41,903 41,901 41,940 41,764 41,549 41,862 41,466 39,396 Deposits: Member bank reserves........................................... 21,049 22,307 21,945 21,251 20,442 21,462 21 ,334 19,505 U.S. Treasurer—General account......................... 1 ,017 1,177 505 396 950 1 ,074 956 1,311 Foreign.................................................................... 198 160 143 164 191 153 422 147 Other: IMF gold deposit1......................................... 230 230 230 230 247 230 247 233 All other.................................................................. 266 229 223 240 212 277 258 278 Total deposits................................................................. 22,760 24,103 23,046 22,281 22,042 23,196 23,217 21,474 Deferred availability cash items.................................... 6,370 7,104 6,338 6,093 5,757 5,671 5,215 5,187 Other liabilities and accrued dividends......................... 380 372 373 365 342 366 378 250 Total liabilities................................................................ 71,413 73,480 71,697 70,503 69,690 71,095 70,276 66,307 Capital accounts Capital paid in................................................................ 617 616 615 615 615 617 615 585 Surplus............................................................................. 598 598 598 598 598 598 598 570 Other capital accounts................................................... 194 145 93 254 205 221 219 166 Total liabilities and capital accounts............................ 72,822 74,839 73,003 71,970 71,108 72,531 71,708 67,628 Contingent liability on acceptances purchased for foreign correspondents........................................... 114 115 1 19 125 132 112 132 379 U.S. Govt, securities held in custody for foreign account.................................................................... 8,113 8,357 8,641 8,677 8,501 7,676 8,328 7,667 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 44,393 44,293 44,215 44,110 44,009 44,431 44,006 41,688 Collateral held against notes outstanding: Gold certificate account......................................... 5,258 5,258 5,258 5,483 5,504 5,258 5,504 6,645 Eligible paper.......................................................... U5. Govt, securities.................................................. 40,256 40,256 40,256 39,746 39,656 40,321 39,696 36,481 Total collateral............................................................... 45,514 45,514 45,514 45,229 45,160 45,579 45,200 43,126 1 See note 1(b) to table at top of p. A-73. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ FEDERAL RESERVE BANKS A-13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JUNE 30, 1968 (In millions of dollars) Phila­ Kan­ San Item Total Boston New del­ Cleve­ Rich­ Atlan­ Chi­ St. Minne­ sas Dallas Fran­ York phia land mond ta cago Louis apolis City cisco Assets Gold certificate account................. 10,025 479 2,753 595 716 929 480 1,556 290 169 373 309 1,376 F.R. notes of other banks................... 672 38 198 29 49 63 81 36 24 16 22 25 91 Other cash............................................ 432 25 63 6 55 25 51 86 33 6 24 17 41 Discounts and advances: Secured by U.S. Govt, securities.... 227 24 24 3 2 8 8 67 7 9 12 16 47 Other................................................ 78 3 1 1 14 26 3 1 25 2 Acceptances: Bought outright............................... 59 59 Held under repurchase agreements.. 75 75 Federal agency obligations—Held under repurchase agreements...... U.S. Govt, securities: Bought outright.............................. 52,230 2,807 13,006 2,714 4,103 3,868 2,830 8,419 1 ,839 1 ,032 2,061 2,232 7,319 Held under repurchase agreements.. Total loans and securities................... 52,669 2,832 13,167 2,718 4,106 3,890 2,864 8,489 1,847 1,066 2,073 2,249 7,368 Cash items in process of collection. .. 9,919 572 1,908 522 690 749 1 ,048 1 ,597 499 311 658 546 819 Bank premises...................................... 113 3 10 2 5 8 20 18 8 3 18 9 9 Other assets: Denominated in foreign currencies.. 1 ,009 49 1260 54 91 52 64 147 34 23 44 58 133 IMF gold deposited 2...................... 230 230 All other........................................... 441 24 109 22 35 36 23 70 16 9 18 18 61 Total assets........................................... 75,510 4,022 18,698 3,948 5,747 5,752 4,631 11,999 2,751 1 ,603 3,230 3,231 9,898 Liabilities F.R. notes............................................. 42,534 2,502 9,700 2,483 3,408 3,950 2,343 7,510 1 ,587 748 1,603 1,460 5,240 Deposits: Member bank reserves..................... 21,462 814 6,370 913 1 ,503 990 1 ,204 2,840 694 496 919 1,155 3,564 U.S. Treasurer—General account.. 1 ,074 64 214 36 88 91 89 76 23 58 79 80 176 Foreign............................................. 153 9 316 10 17 10 12 27 6 4 8 10 24 Other: IMF gold deposit 2...................... 230 230 Alt other....................................... 277 245 1 5 1 2 ♦ 2 2 1 18 Total deposits..................................... 23,196 887 7,075 960 1 ,608 1,096 1 ,306 2,945 723 560 1,008 1 ,246 3,782 Deferred availability cash items......... 7,978 544 1 ,456 412 578 602 874 1 ,270 379 254 544 432 633 Other liabilities and accrued dividends 366 19 99 18 28 26 19 57 13 8 14 15 50 Total liabilities..................................... 74,074 3,952 18,330 3,873 5,622 5,674 4,542 11,782 2,702 1 ,570 3,169 3,153 9,705 Capital accounts Capital paid in.................................... 617 30 158 32 55 32 39 92 21 14 27 35 82 Surplus.................................................. 598 29 154 32 54 31 38 87 20 14 26 34 79 Other capital accounts........................ 221 11 56 11 16 15 12 38 8 5 8 9 32 Total liabilities and capital accounts. . 75,510 4,022 18,698 3,948 5,747 5,752 4,631 11,999 2,751 1 ,603 3,230 3,231 9,898 Contingent liability on acceptances purchased for foreign correspond­ ents...................... 112 6 “27 6 10 6 7 17 4 3 5 6 15 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 44,431 2,590 10,161 2,526 3,653 4,070 2,455 7,759 1 ,668 777 1,667 1,586 5,519 Collateral held against notes out­ standing: Gold certificate account.................. 5,258 330 1,000 475 600 640 350 1 ,400 206 77 ............ 180 ............ Rligiblw paper................................... U.S. Govt? securities....................... 40,321 2,281 9,400 2,300 3,100 3,500 2,150 6,450 1 ,520 715 1,725 1,430 5,750 Tot<;! collateral............................. 45,579 2,611 10,400 2,775 3,700 4,140 2,500 7,850 1 ,726 792 1,725 1,610 5,750 J After deducting $749 million participationsof other F.R. Banks. 3After deducting $137 million participations of other F.R. Banks. 2 See note 2 to table at top of p. A-73. 4After deducting $85 million participations of other F.R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r u a o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m s a h t o i u f r r t s it , y c G h p r a u o s r s e ­ s s G sa r l o e s s s m E a x t o u c r r h i . . ty redemp­ shifts tions 1967—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 1968—Jan.............. 1,488 1,593 20 1,410 1,593 20 52 Feb............. 967 770 100 917 770 100 50 7,658 -8,497 Mar............ 1,550 567 305 1,212 567 305 51 208 Apr............. 1,761 982 167 1,651 982 167 58 41 May....... 1 ,168 784 1 ,098 784 10 -3,566 41 -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 h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s G s i o t e i 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 p e r a e e n u s t e t r e s ­ ­ , change * 1967—May... 62 42 1,438 1,459 606 -10 2 -98 499 June.. . 109 -55 39 753 992 652 1 21 45 719 July.... 286 370 87 -1 -13 -45 28 . -113 450 450 -249 -14 -263 Sept.... 27 - 44 19 453 453 361 -12 104 453 Oct....... 1,427 1,427 474 1 -104 370 Nov.... 45 20 1,369 1,046 1,541 23 5 1,570 Dec -96 545 736 182 15 16 89 302 1968—Jan....... 21 5 1,136 1,031 -20 -38 -12 -69 -139 Feb.. . 839 968 1,205 -140 -7 -20 -166 Mar.. . . 64 15 657 596 739 57 -1 35 830 Apr.. . . 8 3 1,832 1 ,627 815 -45 2 -5 766 May. . . 18 3,638 1 2,488 2,753 119 -12 -1 -30 75 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. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) Nether­ End of period Total P st o e u rl n in d g s B fr e a lg n i c a s n C d a o n l a 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 i n ld d e s r s f S r w an is c s s 1967—May............................. 149 115 25 3 1 1 1 1 2 June............................. 578 399 29 3 1 144 1 1 2 July.............................. 579 566 4 3 1 2 1 2 Auk.............................. 866 761 3 3 1 94 1 1 3 Sept.............................. 788 754 13 3 I 13 1 1 3 O No ct v . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,3 9 0 5 7 3 1,1 8 4 9 0 8 19 3 3 1 1 1 4 4 6 0 1 1 I 1 ♦ 2 3 Dec.............................. 1,604 1,140 45 3 1 413 1 1 * 2 1968—Jan............................... 1,470 1,142 45 253 I 25 1 1 * 3 Feb............................... 1,489 1,152 50 253 1 27 1 1 4 Mar.............................. 1,542 1,197 50 253 1 33 2 1 2 4 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ FEDERAL RESERVE BANKS; BANK DEBITS A-15 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 June 26 June 19 June 12 June 5 May 29 June 30 May 31 June 30 Discounts and advances—Total.................................... 4(2 1 ,952 539 432 567 305 1 ,026 68 Within 15 days............................................................ 394 1 ,937 529 429 564 288 1 ,023 57 16 days to 90 days...................................................... 18 15 10 3 3 17 3 11 91 days to 1 year........................................................ Acceptances—Tota?...................................................... 129 103 108 52 53 134 56 136 Within 15 days............................................................ 79 60 68 15 19 82 20 65 16 days to 90 days...................................................... 50 43 40 37 34 52 36 71 91 days to 1 year............................. , U.S. Government securities—Total.............................. 52,032 51,699 51,457 50,686 50,525 52,230 50,625 46,719 Within 15 days 1...................................................... 2,748 2,187 2,882 2,114 2,463 1 ,455 1 ,383 995 16 days to 90 days...................................................... 13,006 13,481 12,809 12,785 12,362 13,821 13,099 12,544 91 days to 1 year........................................................ 22,545 22,383 2f,810 21,831 21,744 23,159 22,187 18,243 Over 1 year to 5 years................................................ 7,698 7,649 7,957 7,957 7,957 7,737 7,957 13,407 Over 5 years to 10 years............................................. 5,453 5,421 5,421 5,421 5,421 5,470 5,421 1 ,014 Over 10 years............................................................ 582 578 578 578 578 588 578 516 1 Holdings under repurchase agreements are classified as maturing within 15 days tn accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits t ( o i n d e b m ill a io n n d s d o e f p d o o si l t l a a r c s) counts1 Turnover of demand deposits Period S T M 2 o 3 S t 3 a A l ’s L N e .Y ad . ing S 6 M o S t A he ’s rs2 T S o N ( M t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’s L N e .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A 2 l . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1967—May............................. 6,348.2 2,734.5 1,409.2 3,613,7 2,204.5 54.8 115.2 52,0 39.2 33,9 June............................. 6,637.2 2,904.1 1,476.4 3,733.1 2,256.7 56.5 120.0 53.4 40,1 34.4 July............................. 6,688,7 2,857,1 1,560.5 3,831,6 2,271.1 56.8 119.8 55.5 40.7 34.5 Aug.............................. 7,067.8 3,185.7 1,575.0 3,882.1 2,307.1 59.0 128.5 56.6 41.1 34.6 Sept............................. 6,799.4 2,952.4 1,513.6 3,847.0 2,333.4 57.4 120.6 55.4 40.8 35.1 Oct............................... 6,993.0 3,102.4 1,537.7 3,890.6 2,352.9 58.3 125.5 54.6 40.8 35.1 Nov.............................. 6,997.7 3,100.8 1,557.8 3,896.9 2,339.1 58.4 130.2 55.7 41.2 34.8 Dec.............................. 7,047.0 3,149.7 1,515.4 3,897.3 2,381.9 58.5 122.1 54.6 41,1 35.3 1968—Jan............................... 7,369.4 3,323.4 1,584.8 4,046.0 2,461.2 60.2 128.5 55.6 41.6 36.0 Feb.............................. 7,263.9 3,216.8 1,593.3 4,047.1 2,453.8 59.8 129.2 56.9 42.1 36.1 Mar.............................. 7,218.7 3,197.9 1,601.6 4,020.8 2.419.2 59.3 128.2 56.5 41.6 35.7 Apr.............................. 7,500.7 3,285.5 1,673.5 4,215.2 2,541.7 59.7 126.7 57.4 42.3 36.2 May............................. 7,614.0 3,370.6 1,722.0 4,243.4 2,521.4 61.0 129.5 58.8 43.0 36.1 June............................. 7,948.5 3,595.0 1,771 .0 4,353.5 2,582.5 62.4 131.4 59.5 43.4 36.6 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For a description of series, see Mar. 1965 Bulletin, p. 390. All data shown here are revised. For description of revision, sec Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin SI 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939..................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941..................... 11,160 8'120 751 695 44 1; 355 2; 731 2,545 3,044 724 1 433 261 556 24 46 1945..................... 28’515 20,683 1,274 1,039 73 2’313 6; 782 9; 201 7^34 2 327 4 220 454 801 7 24 1947..................... 28,868 20'020 1,404 1,048 65 2,'110 6,'275 9J19 8,850 2,548 5 070 428 782 5 17 1950..................... 27'741 19'305 1J 554 1,113 64 2; 049 5^98 8^29 8,438 2,422 5,043 368 588 4 12 1955..................... 31’158 22'021 1,927 012 75 2; 151 6;617 9; 940 9; 136 2^36 5,641 307 438 3 12 1958..................... 32’193 22356 2', 182 1 ;494 83 2; 186 6; 624 10;288 9337 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 i;588 92 2,313 6,878 10,935 9,531 2; 869 6406 242 300 3 10 1962..................... 35,338 25;356 2,782 1336 97 2,375 7 ;d71 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 7110 249 298 3 4 1964..................... 39^19 28,100 3; 405 M06 111 2'517 7,543 i2;?i7 IC519 3481 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 74*5 288 3 4 1966..................... 44^663 31;695 4; 480 2;05I 137 2J56 8 ,’O7O 14,201 12369 3,700 8,735 241 286 3 4 1967—May......... 44,443 31,509 4,600 1,984 137 2,671 7,979 14,138 12,935 3,660 8 743 238 282 6 6 44J12 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 3h774 4,674 1'873 137 2'625 7,989 14;476 13'094 3,724 8,844 238 281 3 4 45,071 31i884 4,720 1; 878 136 2'628 8,001 14^21 13486 3 749 8,911 238 281 3 4 Sept........... 45,031 31,795 4,752 1,886 136 2^621 7; 949 14^51 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 13,325 3,766 9,031 238 283 3 4 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........... 47,226 33,468 4,918 2,035 136 2,850 8; 366 15;162 13 ;758 3 915 9,311 240 285 3 4 19^8—jan............ 45,819 32,232 4,927 1,923 136 2,686 7,977 14,583 13,588 3 835 9,221 240 285 3 4 45,846 32,284 4,969 1,895 136 2,665 8 ,’000 14^19 13,563 3 ,820 9’213 239 284 3 4 46,297 32;664 5,049 1 ,857 136 2,676 8; 094 14;852 13,632 3,840 9,261 239 285 3 4 hiay.......... 4 4 6 7 , , 6 2 2 0 1 2 3 3 2 3 , , 9 4 3 1 8 4 5 5 , , 2 1 3 3 1 7 1 1 ; , 8 8 7 83 5 1 1 3 3 6 6 2 2 ; ; 7 6 2 8 7 4 8 8, , 2 1 3 0 0 4 1 1 5 5 ^ ;0 2 0 07 2 1 13 3 . ,' 7 6 8 8 7 3 3 3 ,8 8 9 5 4 7 9 9 ,3 2 6 9 0 3 2 24 4 0 0 2 2 8 8 6 6 3 3 4 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by Kind of currency s M ta 1 a n 9 y d 6 i 8 3 n 1 g , A g a s o s g l s i d a l e v i c n a e u n r s r t d i t y Tr c e a a s s h ury B F F a a . n o n R d k r . s A B F a g a n . e n R d n k . t s s 1968 1967 certificates Agents May 31, Apr. 30, May 31, Gold................................................................................. 10,384 (10,026) 2358 Gold certificates............................................................. (10,026) 310,024 1 Federal Reserve notes.................................................... 44,008 146 1 ,539 41,322 40,818 38,907 Treasury currency—’Total............................................ 6,790 (269) 486 ............4..2..4. 5,879 5,803 5,536 Standard silver dollars. ............................................. 485 3 482 482 482 Silver bullion.............................................................. J13 266 46 Silver Certificates........................................................ (269) 4 265 284 547 Fractional Coin.......................................................... 5,585 422 414 4,749 4,656 4,119 United States notes.................................................... 323 18 6 298 297 302 In process of retirement 4.......................................... 85 85 85 87 Total—May 31, 1968................................................... ’61,181 (10,295) 990 10,024 2,965 47,202 Apr. 30, 1968................................................... 561,120 (10,416) 1 ,070 10,127 3,302 46,621 May 31, 1967................................................. 560,751 (13,160) 1,356 12,606 2,346 .................. 44,443 i Outside Treasury and F.R. Banks. Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. A-5. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $247 million gold deposited by and held for the International are shown in parentheses. 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. * 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

JULY 1968 □ MONEY SUPPLY; BANK RESERVES A-17 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—pec................................................... 166.8 36.3 130.5 146.6 172,0 37.1 134.9 145.2 4.6 1966—Dec................................................... 170.4 38.3 132.1 158. 1 175,8 39.1 136.7 156.9 3.4 1967 June.................................................. 176.0 39.3 136,7 172.6 174.2 39.2 135.0 173.0 4.0 July................................................... 177.8 39.4 138,4 174.8 175,7 39.6 136.2 175.2 5.7 Aug.............................................. 178.9 39.5 139,4 177.2 175,8 39.6 136.2 177.8 4.3 Sept.................................................. 179.1 39.7 139,4 179.4 178,3 39.7 138.5 179.0 5.0 Oct................................................. ■ 180.2 39.9 140.2 180.6 180.5 40.0 140.5 180.4 6.3 Nov.................................................. 181.0 40.1 141 .0 182.0 182,4 40,4 141.9 181,3 5.3 Dec................................................... 181.3 40.4 140,9 183.5 187. 1 41 .2 (45,9 182.0 5.0 1968—Jan.................................................. 182.3 40.6 141.7 184.1 187.6 40.5 147.1 183.7 5.0 Feb................................................... 182.7 40.7 141.9 185.2 181.4 40,3 I41.I 185.8 7.2 Mar................................................ 183,4 41.1 142.2 186.7 182.0 40.7 I4I .2 187.7 6.6 Apr................................................... 184.3 41.4 143.0 187. 1 185.6 41.1 144.5 187.9 4.2 May................................................ 186.1 41.6 144.5 187.6 182.5 41 .4 141.1 188.4 6.4 June.......................................... 187.2 42.0 145.3 188. 1 185.4 41 .9 143.5 188.5 5.4 Week ending— 1968—May 1............................................ 183.7 41.5 142.3 (87.3 183.7 40.7 143.0 188.0 5.6 ' 8............................................ 184.8 41.5 143.3 187.4 183.5 41 .5 142.0 188.1 7.3 15........................................... 185.1 41.6 143.5 187.7 182.8 41 .4 141.4 188,5 5.7 22........................................... 186.8 41.8 145.0 187.7 181.4 41 .4 140.0 188.5 6.7 29........................................... 187.5 41.8 145,8 187.6 181 .7 41 .2 140.5 188.4 6.2 June 5".......................................... 187.6 41.8 145.8 187.9 184,8 41.8 143.1 188,5 4.8 12".......................................... 186.2 42,0 (44.2 188.1 185,0 42.1 142.9 188.7 4. I 19".......................................... 186.8 42.0 144.8 188.0 186.2 42.0 144.3 188.4 4.7 26".......................................... 187.8 42,0 145.8 187.9 184,4 41 .7 142.7 188.1 8.2 l At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ Note.—For revised series beginning Jan. 1963; see June 1968 Bul­ rency outside the Treasury, F.R. Banks, and vaults of all commercial letin, pp. A-92—-A-97. For monthly data 1947-58, see June 1964 Bul­ banks. Time deposits adjusted are time deposits at all commercial letin, pp. 679-89; and for data for 1959-62, see August 1967 Bul­ banks other than those due to domestic commercial banks and the letin, pp. 1303-16. U.S. Govt. Effective June 9, 1966, balances accumulated for payment of Averages of daily figures. Money supply consists of (I) demand personal loans were reclassified for reserve purposes and are excluded from deposits at all commercial banks other than those due to domestic com­ 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 je m c 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 i b re je m c e t n to ts 2 Period Total r N o b w o o r n e ­ d ­ qu R ir e e ­ d Total sa T a v i n m in d e g s de v P m a r t a i e ­ n d d G e U m o .S v an t . , d Total r N o b w o o r n e ­ d ­ qu R i e re ­ d Total sa T a v i n m in d e g s de v P m a r t a i e ­ n d d G e U m o .S v an t . , d 1965—Dec....... 22.64 22.15 22.31 236.6 121,2 111,0 4.4 23,23 22,77 22,77 239.0 119.8 115.2 4.0 1966—'Dec..... 22.90 22.29 22.60 244.6 129,4 111.7 3.5 23.47 22.91 23,08 247.1 127.9 116,1 3.0 1967—June.. . . 24.11 23.98 23.66 259.5 140.8 116.0 2.6 24.01 23,89 23,59 258.9 141.3 114.2 3.4 July. ... 24.34 24.28 23.96 262.4 142.8 116.7 2.9 24.42 24.33 24.06 263.2 143.1 115.1 5.1 Aug....... 24.63 24.59 24.26 266.1 144.6 117.5 4.0 24.28 24,19 23,90 263,7 145.2 114.8 3.7 Sept....... 24.79 24.72 24.45 268.4 146.3 117.6 4.5 24.71 24.62 24.35 267.3 146.0 116.9 4.4 Oct....... 25.12 25.02 24.81 270.8 147.4 118.2 5.2 25.12 25.00 24.84 271.1 147.0 118.5 5,7 Nov.. . . 25.28 25.14 24.95 272.9 148.6 118.7 5.6 25.25 25.12 24.85 271,9 147.6 119.7 4.6 Dec....... 25.15 24.85 24.91 273.2 149.9 118.6 4.6 25.78 25.54 25.44 275,9 148.1 123.3 4.5 1968—Jan........ 25.50 25.19 25.15 274.7 149.9 119.4 5.4 26.04 25.80 25.65 278.3 149.4 124.4 4.4 Feb....... 25.77 25.40 25.39 277.0 150.2 119.7 7.1 25.61 25.25 25.21 276.1 150.9 118.8 6.4 Mar.... 25,81 25.14 25.40 278.0 151.2 120.1 6.7 25.58 24.91 25.22 277.1 152.2 119.1 5.8 Apr....... 25.62 24.94 25.28 276.9 151.3 120.4 5.2 25.55 24.86 25.28 277.5 152.0 121.7 3.7 Muy.... 25.71 24.98 25.24 277.3 151.5 122.1 3.7 25.50 24.76 25.09 276.5 152.3 118.6 5.6 June".,. 25.80 25.11 25.43 278.7 151.7 123,1 3,9 25.70 25.01 25,36 278,1 152.2 121.2 4.8 i Averages of daily figures. Data reflect percentage reserve requirements 9, 1966, balances accumulated for repayment of personal loans were elim­ made effective Jan. 18, 1968. inated from time deposits for reserve purposes. 2 Averages of daily figures. Deposits subject to reserve requirements in­ clude total time and savings deposits and net demand deposits as defined Note.—Back data for the period 1947 to date may be obtained from by Regulation D. Private demand deposits include all demand deposits ex­ the Banking Section, Division of Research and Statistics. Board of Gover­ cept those due to the U.S. Govt., less cash items in process of collection nors of the Federal Reserve System, Washington, D. C. 20551. and demand balances due from domestic commercial banks. Effective June Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

uhmru aamo i i iu ivix^m u i rvi \ i oi^Jtuvi ^ juli x^v/o 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 rency Other and deposits misc. s o t i a n u n g t d ­ ­ Total n L e o t a n *, s , 2 Total s C a a v o n i m n d g l. s R F B e e a d s n e e r k r v a s e l Other3 r s i e ti c e u s ­ 2 ca n p e it t al, cur a r n e d n cy co a n u c e n t ­ ts, banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3 328 10,723 188 148 175 348 12 800 1950—Dec. 30. ................. 22,706 4,636 171,667 60'366 96,560 72’894 20l778 2,888 14,741 199,008 184,384 14*624 1963—Dec. 20................... 15,582 5,586 333,203 189'433 103*273 69'068 33'552 653 40*497 354 371 323,251 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 1967—June 30................... 13,110 6,612 439,966 268,967 106,752 58,537 46,718 1 497 64,247 459,688 416 122 43 567 July 26............... 131100 6,600 442,600 268,200 109 J00 61,500 46,900 1 ’400 64,600 462’300 417 800 44*500 Aug, 30................... 13 J00 6,700 445’600 268’500 111,200 63 J00 46,200 1 ’500 65.900 465 300 418 600 46*700 Sept. 27................... 13 J00 6,800 451,200 272’000 112,600 64’500 46,700 1 ’400 66’600 470 900 424 400 46 600 Oct. 25................ 13,000 6,800 454*700 272,400 1 15 job 66,600 47,100 1,200 67,300 474,500 428,300 46’200 Nov. 29................... 12,900 6,800 458,300 273,000 117,100 67,300 48,500 1 ,300 68,100 478 000 431,500 46*500 Dec. 30................... 11,982 6'784 468,943 282 J40 117,064 66,752 49'112 1 200 69,839 487 709 444 043 43*670 1968—Jan 31................... 12,000 6,800 466,300 279,100 116,900 66,600 49,100 1 200 70,400 485 100 439 800 45 300 Feb. 28................... 11 JOO 6,800 466,300 277 J00 117'600 67,600 48,800 1 200 71 J00 485 000 439 300 45’700 Mar. 27................... 10’500 6,800 467,700 279,100 116,200 65,500 49,500 1 200 72,300 484 900 438 900 46’000 Apr. 24p................. 10,500 6,800 469,200 281,900 114,100 63,800 49,300 1 ,000 73,100 486,400 440 JOO 46 J00 May 29r”............... 10,400 6,800 471'500 282,600 116,000 64,400 50,500 1’100 72,800 488'600 440'400 48 200 June 26’’.................. 10,400 6,600 476,700 287'600 115,900 63’000 5 2,’000 I ,000 73,100 493,600 444,400 49,200 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 u n s c i k r d y ­ s e d ju e m s D p a t a o e d e n s d ­ ­ d i t s 5 Total o b r u C e a t n u n s c i k r d y ­ s e d ju m e s D p a t a o d e e n d s ­ ­ d i t 5 s Total b m C a e n o r k m c 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 e o 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 o a v A n n m in t d k g l s . s ■ B F A a .R n t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 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—June 30..., 174,100 38,400 135,700 174,328 39,681 134,647 231,780 173,566 58,161 53 1,804 1,472 5,427 1 JU July 26.... 173,500 38,500 135,000 173,300 38,600 134,700 233,600 175 JOO 58,300 1,800 1,500 6,200 1 300 175 JOO 38 J00 136,700 173 J00 38 J00 134'900 236,500 177,900 58 J00 1,900 1 J00 3,900 1 300 Sept. 27.,.. 176 J00 38,600 138,000 175,500 38 JOO 136 J00 237 J00 178,300 59,200 1,900 1 ,500 7 JOO 711 Oct. 25.... 177,200 39 J100 138 J00 177 J00 39,000 138,900 239 J00 179’800 59 J00 1 *900 1 J00 6’900 900 Nov. 29.. . . 178 300 39’000 139 J00 180 J00 39,700 141 J00 240,500 180,900 59 J00 1,900 1 ,500 5 200 1 800 181 J00 39,600 141 ,’900 191,232 41 J71 150,161 242*657 182,243 60,414 2 J79 1 J44 5,508 1 J23 1968—Jan. 31 .... 180,600 40.000 140,600 183,000 39,400 143,600 245,200 184,500 60,700 1 ,900 1 ,400 7,200 1 200 Feb. 28.... 179,300 39,900 139'400 178,400 39’400 139J00 247’300 186,300 61 JOO 2 J00 I JOO 9’,400 '900 Mar. 27.. . 182*500 40'200 142'300 179‘,800 39’800 140*000 249'300 187 J00 61 J00 2*000 1,100 5 J00 I 000 Apr. 24^... 182 100 40,400 141,700 182,100 40,000 142,100 249,000 187,300 61,700 2 JOO 1,100 4 JOO 1 ,600 May 29 r’\. 182 800 40 800 142 000 181 J00 41 JOO 139'900 250,100 188 J00 62 J 00 2'100 1 JOO 5 300 1 'OOO June 26^... 186 J00 40,900 145,400 183,800 40,900 142,900 250,700 188,200 62 JOO ......2.. .J..0.0 900 5 J00 1 ,000 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-23. million to demand deposits). 2 See note 2 at bottom of p. A-22. 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

JULY 1968 □ COMMERCIAL AND MUTUAL SAVINGS BANKS A-19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Cla a s n s d o d f a b te ank Total Lo 1 a .2 ns G U o .S vt . . Oth 2 er a C ss a e s t h s 3 b c c o i a a l a u p i n L t c n i i i d t ­ a e t a ­ s s l * Total3 m D a e n ­ d Time U. D S. ema O n t d her T 1 im , 5 e r B i o n o g w r s ­ ­ c c T a o a p o u c i t n t ­ a a t l s l b N a b o u n e f m k r s ­ Govt. All banks: 1941—Dec. 31............... 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31............... 140,227 30,361 101,288 8,577 35,415 177,332 165,612 14 105 935 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 66 11,948 14,714 1966—Dec. 31.............. 381,684266,022 60,91654,74570,085 464,376407^37 19,770 968 4,999 167,821 214,078 4,92936,926 14,271 1967—June 30.............. 396,754 273,970 58,537 64,247 66,210476,268 417,790 18,030 1 469 5,159 161,138 231,995 5,208 38 217 14,247 July 26.............. 401,010 274,930 61,51064,570 63,150477,020 416,120 17,020 1,480 5,920 157,800 233,900 6,910 37 ,’940 14,247 Aug. 30.............. 404,280 274,870 63,51065,900 59,840476,930414,950 16,750 1,550 3,640 156,220 236,790 6,520 38,330 14,245 Sept. 27.............. 409,200 278,140 64,50066,560 62,300484,480422,660 17,040 1,530 7,020 159,300 237,770 6,470 38,160 14,244 Oct. 25.............. 412,380278,430 66,63067,32062,300487,590 425,670 17,170 1,430 6,680 161,030 239,360 6,140 38,650 14,236 Nov. 29.............. 415,110279^740 67,25068,12062,650490,710427,760 16,970 1 ,340 4,980 163,730 240,740 6,920 38,890 14,240 Dec. 30.............. 424,134287,543 66,75269,83978,924517,374455,501 21,883 1,314 5,240184,139242,925 5,84639,371 14,223 1968—Jan. 31.............. 421,940284,980 66,57070,39067,710 503,580439,740 17,470 1,320 6,920 168,580245 450 6,820 39,430 14,219 Feb. 28.............. 423,280 284,660 67,55071,07065l660 502,570 437,630 16,920 1 370 9,060 162,640 247,640 7,27039,590 14,219 Mar. 27.............. 423,570 285,750 65,51072,31064,860 502,640 435,990 16,710 1’280 5.320 163,030 249,650 8,150 39,670 14,218 Apr. 24?............ 427,060 290,110 63,84073,11064,740 506,010 438,130 17,340 1 230 3,940 166,330 249,290 8 93039,870 14,215 May 29 r".......... 428,890291 ’680 64^90 72’82065,980 509,020 438,690 17,340 I 100 4 960 164,860 250 430 9,70040,220 14,221 June 26"............ 434,670298,580 62,96073,13068,570517,620444,780 18,330 UlO 5,500 168,770251;060 11,54040,410 14,223 Commercial banks: 1941—Dec. 31.............. 50,746 21,714 21,808 7,22526,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31.............. 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14 HAS 105.971 30,241 219 8,950 14,on 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 56,16348,77269,119403,368 352,287 19,770 967 4,992 167,751 158,806 4,85932,054 13,767 1967—June 30.............. 334,857 223,952 54,233 56,671 65,059 412,118 359,531 18,029 1,468 5,152 161,048 173,833 5,166 33,285 13,744 July 26........... . 338,570224,780 57,110 56,680 62,070412,380 357,750 17,020 1,480 5,920 157,730 175,600 6,91033,030 13,746 Aug. 30.............. 341,230224,340 59,140 57,750 58,810411,730356,250 16,750 1 550 3,640 156,150 178,160 6,520 33 360 13 744 Sept. 27.............. 345,780 227,430 60,090 58,26061,300418,910 363,390 17,040 1,530 7,020 159,230 178,570 6,470 33,190 1'31743 Oct. 25.............. 348,810 227,420 62,37059,020 61,300421,870 366,250 17,170 1,430 6,680 160,940 180,030 6,140 33,680 13,735 Nov. 29.............. 351,100 228,460 62,850 59,790 61;730 424,650 368,100 16,970 1 340 4^80 163,640 181,170 6,920 33,890 13,739 Dec, 30.............. 359,903 235,954 62,473 61,47777,928451,012395,00821,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Jan. 31............. 356,970 233,010 62,230 61,73066,830436,580 378,960 17,470 1,320 6,920168,490 184,760 6,820 34,420 13,717 Feb. 28.............. 357,750 232,420 63,150 62,18064,760434,980376,490 16,920 1,370 9,060 162,550 186,590 7,270 34,520 13,717 Mar. 27.............. 357,610 233,370 61,100 63,14063,950434,570 374,190 16,710 1 280 5,320 162,950 187,930 8,150 34,600 13,716 Apr. 24"............ 360,960 237,640 59,540 63,78063; 870437,850 376,380 17,340 1 ’230 3; 940 166,250 187,620 8,930 34,810 13,714 May 29"........... 362,210238,800 60,02063,39065;100440,250 376,560 17,340 1’100 4,960 164,780 188,380 9,70035,110 13,720 367,520245’400 58,52063,60067,660448,350382,15018,330 1,120 5,500 168,690 188,510 H ,54035,300 13,722 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 J ,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 4,61826,278 6,150 1967—June 30.............. 273,266 186,814 40,636 45,816 57,391 341,290296,548 17,167 1,314 4,580 132,546 140,942 4,920 27,237 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 6,625 27,061 6,108 Aug. 30.............. 278,259 187,130 44,416 46,713 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 45,003 47,120 54,477 346,853 299,334 16,162 1 377 6,318 130,683 144,794 6,141 27,233 6,095 Oct. 25.............. 284,341 189,676 46,967 47,698 54,470 349,107 301,584 16,284 1,275 6,051 132,075 145,899 5,808 27,575 6,086 Nov, 29,............. 285,700 190,515 47,091 48,09454,809 350,888 302,689 16,082 1,189 4,356 134,283 146,779 6,45627,734 6,083 Dec, 30.............. 293,120196,849 46,95649,315 68,946373,584326,033 20,811 1,169 <631 151,980 147,442 5,37028;098 6,071 1968—Jan. 31.............. 290,389 194,262 46,579 49,548 59,102 360,773 311,534 16,668 1,170 6,313 138,263 149,120 6,427 28,142 6,064 Feb. 28.............. 290,844193,582 47,35449,908 57,129 358,945 309,012 16,112 1,223 8,094 133,136 150,447 6 82528,188 6,060 Mar. 27 ............. 290,527 194,303 45,510 50,714 56,437 358,402 306,703 15,917 1,129 4,707 133,587 151,363 7,655 28,250 6,049 Apr, 24.............. 293,281 197,820 44,285 51,176 56,320 361,004 308,156 16,534 1,083 3,438 136,258 150,843 8,58428,424 6,046 May 29.............. 294,364 198,874 44,733 50,757 57,415 363,139308,378 16,574 ’955 4,282 135,242 151,325 9,07328,706 6,041 June 26"............ 299,212204,816 43,49450,90259,445 370,168 313,126 17,529 968 4 ,'792 138,514 151,323 10,77928,865 6,041 Mutual savings banks: 1941—Dec, 31.............. 10,379 4,901 3,704 1,774 793 11,804 10,533 > 10,527 1,241 548 1945—Dec. 31.............. 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 7 1,592 542 1947—Dec. 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—June 30.............. 61,898 50,018 4,304 7,576 1,152 64,150 58,259 f 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 511280 4,400 8,330 920 66,060 59;660 90 59,570 5,000 501 Dec. 30.............. 64 231 51,590 4,280 8,362 996 66,362 60,494 1 7 73 60,414 69 4,987 501 1968—Jan. 31.............. 64,970 51,970 4,340 8,660 880 67,000 60,780 90 60,690 5,010 502 Feb. 28.............. 65,530 52,240 4,400 8,890 900 67,590 61,140 90 61,050 5,070 502 Mar. 27.............. 65,960 52,380 4,410 9,170 910 68,070 61,800 80 61,720 5.070 502 Apr. 24.............. 66,100 52,470 4,300 9,330 870 68,160 61,750 80 6i;670 5,060 501 May 29r".......... 66,680 52,880 4,370 9,430 880 68,770 62,130 80 62,050 5,110 501 67,150 53,180 4,440 9,530 910 69,270 62,630 80 62,550 5,110 501 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

\jVivii¥ii-i\L/ir\L r\»ML> ivim i v-»r\u on v 11 y o^j umNixo ^ juli x^uo 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 1 a ,2 ns G U o . v S t . . Oth 2 er a C ss a e s t h s 3 c c b o a i a l l a u p i n i c a t n i d i t ­ ­ t e a s s l 4 TotaP m D a e n ­ d Time U. D S. ema O n t d her Time1 B r i o n o g w r s ­ ­ c c T a o a o p u c t i n a t ­ a t l s l b N a b o u n e f m k r s ­ Govt. Reserve city member banks: New York City.7*4 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 17487 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—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. 30.................. 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,28220,062 1 ,880 5,715 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 Feb. 28.................. 50,198 37,325 5,771 7,102 14,125 67,771 53,282 5,371 712 1,641 25,85419,704 1 ,935 5,729 12 Mar. 27.................. 49,973 37,334 5,151 7,488 14,275 67,903 52,675 5,484 630 1 ,258 25,667 19.636 2,283 5,740 12 Apr. 24.................. 50,150 37,842 4,734 7,574 13,961 67,654 52,036 5,696 598 575 26,089 19,078 2,809 5,766 12 May 29.................. 50,800 38,737 5,169 6,89414,573 68,783 52,747 6,135 530 749 26,506 18,827 2,586 5,944 12 June 26"................ 52,522 40,675 4,926 6,921 15,189 71,169 54,139 6,565 497 1 ,175 27,132 18,770 3,444 5,986 12 City of Chicago: 7 1941—Dec. 31........ 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31.................. 5,931 1,333 4,213 385 1,489 7'459 7'046 1,312 1,552 3'462 719 377 12 1947—Dec. 31.................. 5,088 1,801 2,890 397 1,739 6’866 6,402 1,217 ' 72 4'201 913 426 14 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—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 1,610 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 1,744 2,623 15,416 12,943 1,224 8 347 5,385 5,979 416 1,234 11 Nov. 29.................. 12,350 8,843 1 ,701 1,806 2,560 15,375 12,860 1,156 9 227 5,430 6,038 650 1,225 10 Dec. 30.................. 12,744 9,223 1 ,574 1,947 2,947 16,296 13,985 1 ,434 21 267 6,250 6,013 383 1,346 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 Feb. 28.................. 12,771 9,042 1,764 1,965 2,713 16,068 13,162 1,177 10 496 5,439 6,040 585 1,339 10 Mar. 27.................. 12,522 8,903 1 ,746 1,873 2,815 15,974 12,450 1,128 10 164 5,311 5,837 853 I ,323 9 Apr. 24.................. 12,729 9,041 1 ,879 1,809 2,606 15,959 12,407 1,185 9 134 5,401 5,678 835 1 ,337 9 May 29.................. 12,534 8,950 1 ,730 1 ,854 2,968 16,143 12,425 1,139 8 169 5,479 5,630 826 I ,346 9 June 26"................ 12,961 9,396 1 ,721 1 ,844 2,893 16,505 12,532 1 ,263 9 121 5,577 5,562 909 1 ,345 9 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—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 17,505 20,084 125,091 108,768 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 46,278 55,189 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. 30.................. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,28855,798 2,555 10,032 163 1968—Jan. 31.................. 105,141 73,002 14,340 17,79922,782 132,083 115,168 7,609 335 2,751 47,681 56,792 3,104 10,069 164 Feb. 28.................. 105,503 72,949 14,700 17,85422,623 132,185 114,952 7,477 395 3,461 46,25657,363 3,416 10,075 164 Mar. 27.................. 105,064 73,232 13,790 18,04221,820 130,999 113,620 7,247 393 1,679 46,687 57,614 3,523 10,087 164 Apr. 24.................. 106,175 74,648 13,383 18,14422,147 132,442 114,208 7,577 380 1 ,412 47,40957,430 4,245 10,152 163 May 29.................. 106,505 74,697 13,496 18,31221,950 132,720 113,758 7,311 321 1 ,587 46,851 57,688 4,407 10,223 163 J une 26". ............ 108,235 76,998 12.929 18,308 22,350 134,805 115,394 7,632 366 1 ,660 48,180 57,556 4,769 10,282 163 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 18,458 19,004131,338 117,749 2,392 69 1,474 56,67257,144 308 10,309 5,958 1967—June 30.................. 113,972 71,684 21,55720,731 18,049 135,047 120,845 2,047 106 1,380 54,95662,356 611 10,655 5,919 July 26.................. 114,929 71,903 22,433 20,593 16,637 134,452 120,410 1,981 69 1,523 54,04862,789 572 10,508 5,920 Aug. 30.................. 116,244 71,843 23,33521,066 16,430135,435 121,040 2,033 69 1,229 54,07863,631 61210,637 5,912 Sept. 27.................. 117,676 72,503 23,904 21,269 16,863 137,318 122,932 2,089 69 1,701 54,99764,076 659 10,489 5,908 Oct. 25.................. 118,889 72,777 24,46321,649 16,864 138,574 124,039 2,103 106 1,511 55,61064,709 660 10,746 5,901 Nov. 29.................. 120,324 73,245 25,00622,073 t7,186 140,289 125,237 2,117 106 1,498 56,68264,834 923 10,849 5,898 Dec. 30................. 122,511 74,995 24,68922,82620,334 146,052 131,156 2,766 96 1,564 61,161 65,569 55211,005 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 5,878 Feb. 28.................. 122,372 74,266 25,11922,987 17,668 142,921 127,616 2,087 106 2,496 55,58767,340 889 11,045 5,874 Mar. 27.................. 122,968 74,834 24,82323,311 17,527 [43,526 127,958 2,058 96 1 ,606 55,92268,276 996 11 ,100 5,864 Apr. 24.................. 124,227 76,289 24,28923,649 17,606 144,949 129,505 2,076 96 1 ,317 57,35968,657 695 11,169 5,862 May 29.................. 124,525 76,490 24,33823,697 17,924 145,493 129,448 1 ,989 96 1 ,777 56,40669,180 1 ,254 11,193 5,857 June 26"............... 125,494 77,747 23,918 23,829 19,013 147.689 131,061 2,069 96 1 .836 57,625 69,435 1,657 11,252 5,857 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 a COMMERCIAL AND MUTUAL SAVINGS BANKS A-21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— b c C a a l l n a l k s d s a a o t n e f d Total Lo 1 a . n 2 s G U o S . v S e t c . . urit O ie t s h 2 er as C s a e s ts h 3 c c b o T a i a u l a l o p i n i c n a t i t d ­ i t ­ a t e a s l s l 2 Total3 m I D n a e n te ­ d rba T n i k m 3 e U. D S. e ma O O n t t d h h e e r r Ti L m 5 e r B i o n o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l N ba b o u n e f m k r s ­ Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,>54 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 (965—Dec. 31.. 303,593 200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 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 Dec. 30.. 358,536 235,502 62,09460,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 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 96,755 93,642 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 3,419 19,098 4,780 Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,t45 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec, 31,. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,351 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 Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1 ,892 8,368 1 ,313 Insured nonmember commercial: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 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 27,445 32,519 130 5,617 7,418 Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31 ,00434,640 162 5,830 7,440 Noninsured nonmem­ ber commercial: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 329 1 291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 31 6. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 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 Dec. 30.. 2,638 1 ,735 370 533 579 3,404 2,172 285 58 15 1 ,081 733 246 457 211 Nonmember commercial: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 4:7 5,504 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,58.3 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173 560 29,53230,258 241 5,776 7,617 1967—June 30,, 61,882 37,429 13,597 10,855 7,667 71,119 63,274 862 154 571 28,502 33,183 246 6,048 7,636 Dec. 30.. 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-22 COMMLKUIAL AND MU I UAL SAVINGS DANKS n JULY iyb« PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposit Total assets— Securities Total Interbank 3 Other b c C a a l n l a l k s d s a a o n te f d Total Loa » ns G U o .S vt . . Other as C s a e s ts h 3 c b a i a a l l p i n i c a t i d i ­ - t e a s l Total 3 m D a e n ­ d Time Demand Time B r 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 e n f m r k s - 2 counts 2 G U o .S vt . . Other 1»5 Insured mutual savings: 1941—Dec, 31., 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945—Dec. 31.. io;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 2 12 12,192 1,252 194 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 j 6 445 50,424 42 4,191 332 55,936 45,489 3,1 i i 7 336 881 57,863 52,910 I 6 42952,474 68 4,237 331 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 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 l',269 972 136 8,343 7,383 1 36 7 346 742 171 Dec. 30.. 8,295 6,100 1,169 1,026 115 8,499 7 ,'584 1 20 7,563 i 749 170 t See table ^Deposits Accumulated at Commercial Banks for Payment 8 Beginning with May 18, 1964, one New York Chy country bank with of Personal Loans'’ and its notes on p. A-23. loans and investments of $1,034 million and total deposits of $982 million 2 Beginning June 30, 1966, loans to farmers directly guaranteed by was reclassified as a reserve city bank. Beginning with May 13, 1965, CCC were reclassified as securities, and Export-Import Bank portfolio Toledo, Ohio, reserve city banks with total loans and investments of fund participations were reclassified from loans to securities. This reduced $530 million and total deposits of $576 million were reclassified as country “Total Ioans’’ and increased “Other securities” by about $1 billion. banks. “Total loans” include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are shown Note.—Data are for all commercial and mutual savings banks in the for commercial banks on pp. A-24 and A-25. United States (including Alaska and Hawaii, beginning with 1959). For 3 Reciprocal balances excluded beginning with 1942. definition of “commercial banks” as used in this table, and for other 4 Includes other assets and liabilities not shown separately. banks that are included under member banks, see Note, p. 643, May 1964 5 Figures for mutual savings banks include relatively small amounts Bulletin. of demand deposits. Beginning with June 1961, also includes certain Comparability of figures for classes of banks is affected somewhat by accounts previously classified as other liabilities. changes in F.R. membership, deposit insurance status, and the reserve 6 Beginning with Dec. 31, 1947, the series was revised; for description, classifications of cities and individual banks, and by mergers, etc. see note 4, p. 587, May 1964 Bulletin. Data for national banks for Dec. 31, 1965, have been adjusted to make 7 Regarding reclassification of New York City and Chicago as reserve them comparable with State bank data. cities, see Aug. 1962 Bulletin, p. 993. For various changes between Figures are partly estimated except on call dates. reserve city and country status in 1960-63, see note 6, p. 5 8 7, May 1964 For revisions in series before June 30, 1947, see July 1947 Bulletin, Bulletin. pp. 870-71. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ COMMERCIAL BANKS A-23 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total 1,2 Loans1,2 Total1, 2 Loans1,2 G U o . v S t . . Other 2 G U o .S vt . . 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 20 9 1961—Dec. 30................................................................ 209.6 120,5 65.2 23.9 214.4 123 9 66.6 23 9 1962—Dec. 31................................................................ 227.9 134.1 64.5 29.2 233.6 137.9 66.4 29 b 1963—Dec. 31................................................................ 246.2 149.7 61.5 35.0 252.4 153,9 63,4 35 1 1964—Dec. 31................................................................ 267.2 167.7 60.7 38.7 273.9 172,1 63.0 38.8 1965 Dec. 31................................................................ 294.4 192.4 57.3 44.8 301.8 197.4 59 5 44 9 1966—-Dec. 31................................................................ 310.2 207.8 53.7 48.7 317.9 213 0 56.2 48 8 325.6 213.9 55.4 56.3 329.5 218.6 54.2 56 7 July 26......................................................... 332.4 217.1 58.8 56.5 331.8 218,0 57.1 56.7 337.3 218.2 61.8 57.3 334,2 217,3 59.1 57 8 Sept. 27.. ........................................................... 339.5 220.2 61.6 57.7 338.8 220,4 60.1 58 3 Oct 25................................................................ 342.6 221.8 62.3 58.6 341.6 220,2 62.4 59 0 Nov 29................................................................ 344.4 222.3 61.8 60.3 344.1 221,5 62.9 59 8 Dec. 31................................................................ 345.9 224.9 59.6 61.4 354.5 230.5 62.5 61.5 1968—jan. 31 ............................................................... 349.0 227.5 59.1 62.4 350.1 226.1 62.2 61.7 Feb. 28............................................................... 353.0 228.7 61.8 62.6 350.6 225.2 63.2 62.2 Mar. 27 .................................................. 351,8 228.5 59.9 63.5 351.1 226.9 61.1 63.1 Apr. 24r?’........................................................... 354.6 231.9 59.2 63.4 353.9 230.5 59.5 63.8 May 29 *’........................................... ■ ■ • 356.3 232.0 60.7 63.5 354.5 231.1 60.0 63.4 June 30 »............................................................. 356.6 233.2 60.0 63.4 360.9 238.3 58.7 63.9 i Adjusted to exclude interbank loans. Note.—Data are for last Wed. of month except for June 30 and Dec. 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated 31; data are partly or wholly estimated except when June 30 and Dec. 31 for payment of personal loans were deducted as a result of a change in are call dates. Federal Reserve regulations. The data in this table are revised. For a description of the revision and Beginning June 30, 1966, CCC certificates of interest and Export­ for back data beginning with Jan. 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, Dec. 30, Class of bank June 30, Dec. 31, June 30, Dec. 30, 1966 1966 1967 1967 1966 1966 1967 1967 All commercial..................... 1,150 1,223 1,272 1,283 All member (cont.)— Insured................................... 1,150 1.223 1 ,271 1 ,283 Other reserve city............... 338 370 389 362 National member.......... 678 729 764 747 Country.............................. 532 571 591 617 State member........................ 193 212 217 232 All nonmember...................... 280 283 291 304 All member............................... 870 941 981 979 Insured ................................ 279 282 291 304 New York City..................... Noninsured......................... I City of Chicago................... Note.—These hypothecated deposits are excluded from “Time depos­ These deposits have not been deducted from “Loans” and “Time de­ its” and “Loans” at all commercial banks beginning with June 30, 1966, posits” in the table on pp. A-21 and A-22, or from “Loans” and “Time as follows: in the tables on pp. A-19—A-22; in the table at the top of this deposits, IPC” in the tables on pp. A-24 and A-25. page; and in the tables on pp. A-26—A-29 (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, $244,000 on June 30, 1967, and $94,000 on Dec. 30, 1967 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-^4 COMIVILKUIAL BANKS □ JULY lybb LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To Class of l T oa o n t s a 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 i y t s i i i e n n s g g in f s in ti a tu n t c i i o a n l s Other, U.S s . e G cu o r v it e ie rn s m 6 ent State bank and and funds mer­ Agri- Real to and Other call date invest­ sold, Total cial cul- es­ in­ Other local secu­ ments etc.2 and tur- To tate di­ 5 govt, rities5 in­ al 5 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o er s Banks Others uals3 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,034 53,205 5,2763,729 1965—Dec. 31.. 306,060 2,103 199,55571 ,4378,2125,2583,231 2,158 13,291 49,30045,4685,215 59,547 n.a. n.a. n.a. 38,6556,201 1966—Dec. 31.. 323,885 2,544216,405 80,598 8,555 5,821 3,203 2,189 13,30253,95047,943 5,183 56,163 n.a. n.a. n.a.41,0037,769 1967—June 30.. 336,129 3,944221,28084,5399,3334,598 3,326 1,784 12,23455,275 49,5305,065 54,233 n.a. n.a. n.a.46,8739,799 Dec. 30.. 361,186 4,057 233,18088,4439,2706,215 3,780 1,902 12,535 58,52551 ,585 5,65962,473 n.a. n.a. n.a.50,006 11,471 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,5 05 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,912 21,526 16,04551,342 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1965—Dec. 31.. 303,593 2,064198,045 70,887 8,191 5,088 3,172 2,093 13,14849,02645,2905,155 59,120 13,134 13,23333,85838,4195,945 1966—Dec. 31.. 321,473 2,461 214,91880,0608,5365,6433,148 2,131 13,14853,68647,7705,127 55,788 12,080 13,43931,53640,761 7,545 1967—June 30.. 333,742 3,874219,833 84,0139,3134,383 3,273 1,701 12,11455,05649,3595,017 53,871 8,563 14,65331,91846,6069,558 Dec. 30.. 358,536 3,919231,583 87,8709,2506,0173,719 1 ,848 12,39458,20951,3955,60662,094 n.a. n.a. n.a.49,737 11,204 Member, total: 1941—Dec. 31.. 43,521 .....1..8..,.021 8,671 972 594 598 39 .......... 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,05778,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1965—Dec. 31.. 251,577 1,861 167,93963,9795,0994,9152,714 2,008 12,475 38,988 36,4184,83244,992 9,441 10,10626,367 32,5884,198 1966—Dec. 31.. 264,627 2,119 181,62472,5535,318 5,3892,660 2,047 12,34942,38437,925 4,757 41,924 8,567 9,78924,60933,8005,160 1967—June 30.. 274,247 3,377 184,41875,921 5,7374,175 2,743 1,620 11,35443,13038,9124,63040,636 5,769 10,971 24,855 39,085 6,731 Dec. 30.. 294,098 3,438 194,38979,3445,7025,8203,099 1 ,754 11,58745,52840,4545,19046,956 n.a. n.a. n.a.41,5207,795 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 s:2 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 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 17 3,109 598 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 Dec. 30.. 52,141 415 38,64423,183 13 3,874 831 914 2,990 3,431 3,099 1,285 6,027 n.a. n.a. n.a. 6,318 737 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 I ,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 1965—Dec. 31.. 11,455 72 8,147 4,642 32 444 244 188 1,201 577 762 316 1,700 542 273 961 1,400 137 1966—Dec. 31.. 11,802 31 8,724 5,311 64 406 222 181 1,161 622 751 273 1,545 353 256 1,004 1,328 174 1967—June 30.. 12,133 192 8,732 5,562 41 309 205 174 1,019 671 741 281 1,576 308 385 951 1,434 199 Dec. 30.. 12,744 266 8,958 5,714 46 459 220 162 951 675 754 241 1 ,574 n.a. n.a. n.a. 1,487 459 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 38729,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1965—Dec. 31.. 91,997 471 64,64624,7841,206 954 1,108 635 5,820 15,056 14,305 1,999 14,354 2,972 3,281 8,432 11,504 1,022 1966—Dec. 31.. 96,201 817 69,01728,0901,251 1,084 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 Dec. 30.. 106,086 1 ,219 72,71330,6091,311 881 1,143 578 5,446 16,969 15,047 2,148 14,667 n.a. n.a. n.a. 15,3762,110 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 HO 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 2,10817,687 2,006 1,262 1965—Dec. 31.. 103,362 905 62,433 16,4783,840 650 698 174 1,983 20,217 18,423 1,177 23,735 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 2,17522,253 20,000 1,30722,419 3,791 5,91713,096 15,4732,985 1967—June 30.. 114,563 1,594 70,681 19,1204,323 591 830 1 16 1,92822,99620,735 1,383 21,557 2,706 5,915 13,270 16,9263,804 Dec. 30.. 123,127 1,538 74,074 19,8394,332 607 906 100 2,20024,45321,5541,51624,689 n.a. n.a. n.a. 18,3384,488 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 1965—Dec. 31.. 54,483 242 31,616 7,4583,113 343 516 151 817 10,312 9,050 383 14,555 n.a. n.a. n.a. 6,0672,003 1966—Dec. 31.. 59,257 425 34,781 8,0453,237 431 543 142 953 11,566 10,018 427 14,239 n.a. n.a. n.a. 7,2032,609 1967—June 30.. 61,882 567 36,862 8,6183,596 423 583 164 879 12,145 10,618 435 13,597 n.a. n.a. n.a. 7,7873,068 Dec. 30.. 67,087 618 38,791 9,0993,568 395 681 148 948 12,997 11,131 469 15,516 n.a. n.a. n.a. 8,4863,676 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 s 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-23. For other notes see opposite page. 4 Breakdowns of Ioan investment and deposit classifications are not Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 a COMMERCIAL BANKS A-25 RESERVES AND LIABILITIES BY CLASS OF BANK (In 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 w F e a r . i n v R t k h e . s s r C c e a o n n u i c d r n y ­ b m a a w n d e n c i o s k t e t h ­ s i s c 7 ju m p s o a d a t s d e e n i ­ ­ d t d s 8 m D e I s O n t t i ; e c? rba e F n ig k o n r ­ 9 G U o .S vt . . S g l a o o t n c a v a d t t e l . c C c h o f a e e e i f n e r f r c d d i s t k ­ i ' ­ s, IPC I b n a t n e k r­ G P S U a o o a n . s v v S d t ­ a t . , l S l g a o o t n c a v d a t t e l . IPC3 B r i o n o w g r s ­ ­ C co a a t u a c p l n ­ i t ­ s etc. ings Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 lit 866 34,383 65 10,059 [965—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 Dec. 30.... 20,275 5,931 17,490 153,253 19,853 2,029 5,234 15,564 8,677 159,825 1 ,316 267 15,892 167,6345,777 34,384 All insured: 1941—Dec, 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31 ... . 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 ill 826 33,946 61 9,734 1965—Dec. 31 ... . 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,325 29,827 1966—Dec. 31.... 19,069 5,426 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414145,7444’71731,609 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 15,614158,560 5,05032,843 Dec. 30.... 20,275 5,916 16,997151,948 19,688 1,909 5,219 15,471 8,608 158,905 1,258 267 15,836166,9565’531 33,916 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 1965—Dec. 31.... 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 23610,041 109,925 4,23424,926 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 10,983 118,5764,6(8 26,278 1967—June 30.... 18,999 3,728 8,686109,132 15,610 1,557 4,580 11,566 6,857 114,123 1,314 239 12,747128,9364,92027,237 Dec. 30..., 20,275 4,646 10,550 121,530 18,951 1,861 4,631 11,857 7,940 132,184 1,169 235 12,856135,3295^37028,098 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 io 20 1,206 195 2,t20 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 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 L841 5,604 Dec. 30.... 4,786 397 476 20,004 5,900 1,337 1 ,084 890 4,748 25,644 741 70 1,152 18,840 1,880 5,715 City of Chicago: [941—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 1965—Dec. 31.... 1,042 73 151 4,571 1,377 59 345 328 126 5,202 39 4 210 4,785 355 1,132 1966—Dec. 31.... 815 92 136 4,502 1,362 71 310 286 146 5,575 25 1 356 4,541 484 1,199 1967—June 30.... 954 80 153 4,370 1,209 62 299 307 169 5,061 20 1 470 5,215 359 1,224 Dec. 30.... 1,105 94 151 4,758 1,357 77 267 283 217 5,751 21 2 602 5,409 383 1,346 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 IIO 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1963—Dec. 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 Dec. 30.... 8,618 1,452 2,805 39,957 8,985 390 1,715 3,542 1,580 48,165 310 80 5,830 50,2502,555 10,033 Country: 1941—Dec. 3!.. .. 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 1965—Dec. 31.... 5,463 2,235 6,344 52,104 2,317 54 1,501 6,360 1,143 47,615 711 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 Dec. 30.... 5,767 2,704 7,117 56,812 2,709 57 1,564 7,142 1 ,395 52,624 96 83 5,272 60,830 552 11,005 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 1965—Dec. 31.... 1,093 6,343 28,367 817 155 635 3i 404 592 24,653 168 27 2,145 24,322 238 5,345 1966—Dec. 31.... 1,20! 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 Dec. 30.... ............ 1,285 6,939 31,723 903 169 603 3,707 737 27,641 147 32 3,035 32,305 408 6,286 ? 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, 1965, 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-26 WEEKLY REPORTING BANKS □ JULY 1968 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans 2 For purchasing To financial institutions or carrying securities Loans1 Total net of Wednesday lo a a n n d s v t a i l o u n a ­ C m o e m r­ ­ a T n o d b d r e o a k l e e r r s s To other Banks Nonbank Con­ Valua­ invest­ re­ cial Agri­ Real sumer For­ All tion ments! serves and cul­ estate instal­ eign other re­ indus­ tural U.S. U.S. Do­ Pers, ment govts. serves trial Govt, Other Govt, Other mes­ and se­ sc“. se­ se­ For­ tic sales curi­ curi- curi­ curi­ eign com­ finan. Other ties ties ties ties mer­ cos., cial etc. Large banks—• Total 1967 June 7.......... 192,653 136,045 61,478 1 ,889 969 3,173 68 2,204 1 ,407 3,366 5,302 4,093 27,331 15,919 1 ,016 10,787 2,957 14.......... 194,485 137,560 62,379 1,900 1 ,339 3,086 68 2,187 1 ,426 3,239 5,412 4,204 27,422 15,959 1 ,020 10,874 2,955 21.......... 196,807 139,721 63,850 I ,912 801 3,389 69 2,195 1 ,357 3,296 5,945 4,294 27,496 16,003 1,108 10,956 2,950 28.......... 195,720 139,937 63,769 1 ,881 528 3,285 70 2,167 1 ,338 3,895 5,859 4,410 27,547 16,061 1 ,070 11,001 2,944 1968 May 1.......... 209,465 148,580 67,757 1 ,985 801 3,694 116 2,327 1,360 3,708 6,082 4,458 29,543 16,733 I ,050 12,180 3,214 8.......... 208,801 147,738 67,431 1 ,990 849 3,563 96 2,346 1 ,390 3,949 5,377 4,375 29,586 16,776 1 ,063 12,161 3,214 15.......... 210,179 148,461 67,610 1 ,986 702 3,641 96 2,345 1 ,362 4,191 5,646 4,360 29,721 16,838 1 ,060 12,116 3,213 22.......... 209,294 148,135 67,427 I ,983 563 3,702 99 2,346 1 ,374 4,408 5 ,196 4,437 29,770 16,872 1 ,069 12,099 3,210 29..... - 208,973 147,837 67,054 1 ,983 645 3,637 97 2,357 I ,463 4,170 5,171 4,463 29,844 16,959 1 ,089 12,115 3,210 June 5.......... 210,442 149,293 67,419 1 ,991 I ,035 3,666 96 2,374 1 ,391 4,271 5,645 4,419 29,873 17,005 1 ,087 12,231 3,210 12.......... 210,214 149,222 67,663 2,001 496 3,816 95 2,383 1 ,416 3,917 5,817 4,424 29,985 17,059 1,109 12,252 3,211 19.......... 212,599 151 ,577 68,999 1 ,990 746 4,123 94 2,417 1 ,386 3,731 6,118 4,551 30,095 17,102 1,105 12,333 3,213 26.......... 213,285 153,105 69,240 2,006 662 3,923 95 2,410 1 ,408 5,375 5,806 4,631 30,199 17,199 1 ,097 12,269 3,215 New York City 1967 June 7.......... 43,823 33,375 20,592 14 421 1 ,829 10 630 714 853 I ,518 1 ,020 2,975 1 ,220 639 1 ,779 839 14.......... 44,784 34,169 21,055 15 688 J ,731 10 610 732 853 1,598 1 ,072 2,990 1 ,222 649 1 ,783 839 21.......... 45,931 35,114 21,672 13 416 2,009 10 630 661 1,006 1,749 1,065 2,987 1,233 686 1,812 835 28.......... 45,326 35,153 21,673 13 243 1 ,964 10 616 639 I ,294 1 ,643 1 .111 3,006 1,252 695 I ,829 835 1968 May 1.......... 47,785 36,669 22,582 20 243 2,149 25 708 681 1 ,078 1,907 1,159 2,983 1 ,269 724 2,084 943 8.......... 47,227 36,384 22,366 20 402 2,044 11 720 709 1 ,395 1,435 I , 107 2,994 1 ,284 728 2,112 943 15.......... 47,646 36,629 22,388 20 319 2,179 11 724 696 1 ,308 1 ,702 1,124 3,016 1 ,286 729 2,069 942 22.......... 47,510 36,584 22,356 19 330 2,272 13 730 706 1 ,466 1 ,394 1,162 3,023 1 ,283 725 2,047 942 29.......... 47,774 36,737 22,319 19 353 2,233 13 741 754 1 ,534 1 ,398 1,179 3,052 1 ,284 737 2,063 942 June 5.......... 47,810 36,714 22,480 19 450 2,257 12 745 736 I ,134 1 ,511 1,151 3.056 1 ,290 696 2,1(9 942 12.......... 48,416 37,246 22,556 18 235 2,404 12 754 734 1,365 1 ,708 1 ,157 3,081 1 ,302 707 2,155 942 19.......... 48,831 37,665 23,084 18 346 2,626 12 772 709 812 1 ,785 1 ,217 3,101 1 ,296 706 2,123 942 26.......... 49,526 38,658 23,165 18 316 2,443 15 773 694 2,08b 1 ,575 1 ,248 3,127 1 ,302 692 2,146 942 Outside New York City 1967 June 7...... 148,830 102,670 40,886 1,875 548 1,344 58 1 ,574 693 2,513 3,784 3,073 24,356 14,699 377 9,008 2,118 14.......... 149,701 103,391 41,324 1 ,885 651 1 ,355 58 1 ,577 694 2,386 3,814 3,132 24,432 14,737 371 9,091 2,116 21 ...... 150,876 104,607 42,178 1,899 385 1 ,380 59 1 ,565 696 2,290 4,196 3,229 24,509 14,770 422 9,144 2,115 28.......... 150,394 104,784 42,096 1 ,868 285 1 ,321 60 1 ,551 699 2,601 4,216 3,299 24.541 14,809 375 9,172 2,109 1968 May 1.......... 161,680 HI ,911 45,175 1 ,965 558 1 ,545 91 1 ,619 679 2,630 4,175 3,299 26,560 15,464 326 10,096 2,271 8.......... 161,574 111,354 45,065 1 ,970 447 I ,519 85 1 ,626 681 2,554 3,942 3,268 26,592 15,492 335 10,049 2,271 15.......... 162,533 HI ,832 45,222 1 ,966 383 1 ,462 85 1 ,621 666 2,883 3,944 3,236 26,705 15,552 331 10,047 2,271 22.......... 161,784 111,551 45,071 1 ,964 233 1 ,430 86 1,616 668 2,942 3,802 3,275 26,747 15,589 344 10,052 2,268 29.......... 161,199 111,100 44.7J5 1,964 292 1,404 84 1 ,616 709 2,636 3,773 3,284 26,792 15,675 352 10,052 2,268 June 5.......... 162,632 112,579 44,939 1,972 585 1 ,409 84 I ,629 655 3,137 4,134 3,268 26,817 15,715 391 10,112 2,268 12 161,798 111,976 45,107 1 ,983 261 1 ,412 83 1 ,629 682 2,552 4,109 3,267 26,904 15,757 402 10,097 2,269 19.......... 163,768 113,912 45,915 1,972 400 1,497 82 1 ,645 677 2,919 4,333 3,334 26,994 15,806 399 10,210 2,271 26...... 163,759 114,447 46,075 1,988 346 1,480 80 1,637 714 3,289 4,231 3,383 27,072 15,897 405 10,123 2,273 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ WEEKLY REPORTING BANKS A-27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with— Obligations of States Other bonds, Cash All Notes and bonds and corp, stocks items Cur­ Re­ other Wednesday maturing—■ political and in rency serves assets Cer­ subdiv. securities Total process and with Total Bills tifi­ of coin F.R. cates collec­ Do­ For­ Banks Certif, tion mestic eign With­ 1 to After Tax All of Other banks banks in 5 yrs. 5 yrs. war­ other partici­ secu­ I yr. rants 3 pation4 rities ._._. . Large banks— total 1967 25,201 3,426 251 2,884 12,842 5,798 3,601 23,848 1 ,221 2,737 40,441 18,664 4,066 214 2,523 14,974 8,341 25,411 3,602 245 2,937 12,830 5,797 3,529 23,997 1 ,227 2,761 44,354 22,526 4,146 222 2,655 14,805 8,256 ...................14 25,279 3',595 252 2,816 12,955 5,661 3,633 24,189 1 ,212 2,773 43,286 20,800 4,016 222 2,679 15,569 8,260 ..................21 24,126 2,541 251 2,825 12,908 5,601 3.565 24,166 1 ,221 2,705 42,203 20,425 4,078 203 2,758 14,739 8,519 ..................28 1968 26,005 2,795 3.935 13,984 5,291 4,382 26,363 1,315 2,820 48,772 24,331 4,364 212 2,682 17,183 9,799 26393 2^878 4,195 13,733 5,447 4,149 26,557 1 ,287 2,777 43,943 22,058 3,936 219 2,667 15,063 9,712 ....................8 27*294 2*980 4,034 14,257 6,023 3,896 26,502 1 ,293 2,733 49,109 25,775 4,360 215 2,722 16,037 9,574 ...................15 26*756 2,687 4,301 13,700 6,068 3,924 26,522 1 ,285 2,672 44,893 22,588 3,963 214 2,792 15,336 9,500 ..........22 26 * 494 2 552 4,406 13,506 6,030 4,047 26,632 1 ,281 2,682 45,278 22,733 4,068 208 2,705 15,564 9,526 ..................29 26,535 2,872 4,293 13,330 6,040 4,150 26,610 1 ,285 2,569 46,412 23,112 4,215 194 2,633 16,258 9,757 26*451 2362 4,395 13,235 6,059 4,145 26,554 1 ,282 2,560 49,171 24,929 4,293 192 2,821 16,936 9,637 ...................12 26*505 2*870 5.013 12,554 6,068 3,937 26,615 1 ,369 2,596 49,286 24,725 4,169 204 2,866 17,322 9,443 ...................19 25 532 2*080 4.965 12,459 6,028 3,937 26,620 1 .436 2.655 46,817 23,632 4,201 223 2,940 15,821 9,563 ..................26 New York City 1967 4,881 1 ,052 91 522 2,036 1,180 591 4,248 87 641 1 1.517 6,729 207 93 3 27 4,16! 3,016 5,024 1,153 91 548 2,041 1,191 621 4,243 85 642 13,736 8,755 240 92 339 4,310 2,982 ...................14 5 ,033 1 .188 92 544 2,060 1,149 720 4,339 87 638 12,478 7,594 227 80 330 4,247 3,006 ..................21 4,530 742 92 567 2,016 1,113 687 4.270 74 612 12,871 8,245 237 72 349 3,968 3,116 ..................28 1968 4,932 638 541 2,031 1,182 1 ,558 4,397 63 706 15,093 9,828 303 103 352 4,507 3,500 4321 590 735 1 ,881 1,315 1,147 4,418 60 697 13,550 9,338 240 109 354 3,509 3,448 ....................8 4*838 768 746 1 ,873 1 ,451 1,056 4,405 59 659 15,297 10,529 329 105 348 3,986 3,376 ...................15 4,700 653 803 1 ,749 1,495 1,116 4,433 56 621 13,993 9,642 269 107 345 3,630 3,346 ...................22 4’704 700 778 1 '734 1 ,492 1 ,210 4,449 59 615 14,267 9,714 265 102 327 3,859 3,280 ..................29 4,763 943 646 1,703 1,471 I ,243 4,428 58 604 14,334 9,160 297 96 344 4,437 3,406 4,837 1 007 691 1 ,'671 1 ,468 1 ,236 4,428 54 615 15,820 10,483 300 91 361 4,585 3,349 ..................12 4,836 *993 854 1 ,519 1 370 1,161 4,481 59 629 15,547 10,181 349 102 351 4,564 3,311 ...................19 4,476 696 794 1 320 1 366 1,187 4,489 73 643 14,956 10.114 308 1 10 369 4,055 3,327 ..................26 Outside New York City 1967 20,320 2,374 160 2,362 10,806 4,618 3,010 19,600 1,134 2,096 28,924 11.935 3,859 121 2,1 96 10,813 5,325 .... .June 7 20,387 2,449 154 2,389 10,789 4.606 2,908 19,754 1,142 2,119 30,618 13,771 3,906 130 2,316 10,495 5,274 ...................14 20,246 2,407 160 2,272 10,895 4,512 2,913 19,850 1,125 2,135 30,808 13,206 3,789 142 2,349 11.322 5,254 ..................21 19,596 1 ,799 159 2,258 10.892 4.488 2,878 19,896 1,147 2,093 29.332 12,180 3,841 131 2.409 10.771 5,403 ..................28 1968 21,613 2,157 3,394 1 1 ,953 4,109 2,824 21.966 1 ,252 2,114 33,679 14.503 4,061 109 2,330 12,676 6,299 ........May 1 21,772 2 288 3*460 11,892 4*132 3,002 22,139 1 ,227 2,080 30,393 12,720 3,696 HO 2,313 11,554 6,264 ....................8 22*456 2,212 3,288 12,384 4,572 2,840 22,097 1 ,234 2,074 33,812 15,246 4,031 110 2,374 12,051 6,198 ..................15 22,056 2 034 3*498 11’951 4*573 2,808 22,089 1 ,229 2,051 30,900 12,946 3,694 107 2,447 11,706 6,154 ..................22 21,790 1 852 3’628 11 *772 4338 2,837 22,183 1 ,222 2,067 31,011 13,019 3,803 106 2,378 11,705 6,246 ..................29 21,772 1 929 3,647 11,627 4,569 2,907 22,182 1 ,227 1,965 32,078 13,952 3,918 98 2,289 II ,821 6,351 21 *614 1 755 3,704 11,564 4*591 2,909 22,126 1 ,228 1,945 33,351 14,446 3,993 101 2,460 12,351 6,288 ...................12 21*669 1 877 4’159 11,035 4398 2,776 22,134 1 ,310 1,967 33,739 14,544 3,820 102 2,515 12,758 6,132 ..................19 21,056 1,384 ....4..^.. 1..71 10,’939 4362 2,750 22,131 1 ,363 2,012 31,861 13,518 3,893 113 2,571 11,766 6,236 ..................26 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-28 WEEKLY REPORTING BANKS □ JULY 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 U.S. tic polit­ mes­ Total 5 IPC ical Govt. com­ Com­ Total? ical tic Com­ sub­ mer­ Govt., mer­ Sav­ Other sub­ inter­ Govt., mer­ divi­ cial etc.6 cial ings divi­ bank etc. cial sions banks banks sions banks Large banks— Total 1967 June 7................... 203,954105,645 77,318 5,732 1 ,923 13,150 785 1,512 98,309 47,396 35,004 9,869 1 ,026 4,639 178 14................... 209,542 111,069 82,782 5,386 996 13,322 634 1 ,603 98,473 47,429 35,080 9,815 1 ,054 4,716 180 21................... 210,248 111,932 80,526 5,454 5,698 12,775 640 1,577 98,316 47,532 34,811 9,703 I ,065 4,831 177 28................... 208,249 109,402 79,244 5,919 3,103 12,700 708 1 ,482 98,847 47,738 35,117 9,665 I ,065 4,890 179 1968 May 1............. 225,397 121,317 86,147 7,121 5,208 13,394 755 1,731 104,080 48,386 39,113 10,402 735 4,949 264 8................... 218,660 114,332 81,574 5,996 4,060 13,788 719 1 ,674104,328 48,424 39,246 10,555 736 4,877 257 15................... 223,759 119,663 85,750 6,280 4,184 14,088 794 1,641 104,096 48,421 39,148 10,437 725 4,878 255 22................... 219,029 114,881 82,487 5,844 4,209 13,340 759 1,692 104,148 48,466 39,277 10,416 713 4,791 253 29.................. 219,278 115,108 83,860 5,946 3,107 13,135 771 1 ,732 104,170 48,470 39,295 10,471 695 4,773 238 June 5.................... 221,079 117,057 84,516 6,095 3,119 14,636 696 1,764 104,022 48,492 39,337 10,331 691 4,715 236 12................... 223,100 119,187 87,586 5,368 2,466 14,318 692 1 ,702 103,913 48,465 39,445 10,183 691 4,661 239 19................... 224,842 121,406 86,426 5,587 6,389 13,990 688 1 ,745 103,436 48,463 39,181 10,048 683 4,596 231 26................... 223,070 119,218 85,653 6,363 3,669 13,990 706 1 ,720 103,852 48,657 39,416 10,079 682 4,557 225 blew York City 1967 June 7.................... 45,735 27,648 18,055 482 419 3,725 648 1 ,057 18,087 4,7(7 8,580 822 678 3,107 93 14................... 48,649 30,385 20,055 353 141 3,902 490 1,123 18,264 4,715 8,630 867 703 3,167 93 21.................... 48,493 30,371 19,396 393 1 ,897 3,759 503 1,112 18,122 4,715 8,399 876 716 3,239 92 28................... 48,260 30,065 19,185 468 753 3,894 565 1 ,024 18,195 4,727 8,409 869 711 3,301 93 1968 May 1................... 51,630 33,848 21,170 1 ,070 1 ,023 4,196 591 1 ,221 17,782 4,647 8,418 874 448 3,168 136 8................... 49,062 31,247 19,340 447 797 4,593 551 1 ,158 17,815 4,646 8,477 901 441 3,127 130 15................... 50,551 32,826 20,351 469 1 ,011 4,500 609 I ,128 17,725 4,636 8,403 890 434 3,141 129 22................... 49,481 31 ,835 19,746 430 940 4,433 567 1,193 17,646 4,637 8,397 885 427 3,079 130 29.................... 49,915 32,314 20,415 461 726 4,493 614 1 ,209 17,601 4,623 8,347 955 415 3,059 115 June 5................... 49,800 32,255 20,353 555 848 4,733 551 1 ,250 17,545 4,619 8,363 958 410 2,997 112 12.................... 51,196 33,603 21.185 354 525 4,890 553 1 ,210 17,593 4,612 8,466 936 416 2,966 111 19................... 51,242 33,813 20,677 386 1 ,976 4,634 538 1 ,228 17,429 4,610 8,331 980 396 2,915 108 26................... 51,314 33,773 20,809 464 1,153 4,903 559 1 ,213 17,541 4,627 8,439 1 ,012 389 2,878 108 Outside blew York City 1967 June 7.................... 158,219 77,997 59,263 5,250 1 ,504 9,425 137 455 80,222 42,679 26,424 9,047 348 1 ,532 85 14.................... 160,893 80,684 62,727 5,033 855 9,420 144 480 80,209 42,714 26,450 8,948 351 1,549 87 21.................... 161,755 81,561 61,130 5,061 3,801 9,016 137 465 80,194 42,817 26,412 8,827 349 1 ,592 85 28.................... 159,989 79,337 60,059 5,451 2,350 8,806 143 458 80,652 43,011 26,708 8,796 354 1,589 86 1968 May 1.................... 173,767 87,469 64,977 6,051 4,185 9,198 164 510 86,298 43,739 30,695 9,528 287 I ,781 128 8................... 169,598 83,085 62,234 5,549 3,263 9,195 168 516 86,513 43,778 30,769 9,654 295 1 ,750 127 15................... 173,208 86,837 65,399 5,81 1 3,173 9,588 185 513 86,371 43,785 30,745 9,547 291 1 ,737 126 22.................... 169,548 83,046 62,741 5,414 3,269 8,907 192 499 86,502 43,829 30,880 9,531 286 1 ,712 123 29.................... 169,363 82,794 63,445 5,485 2,381 8,642 157 523 86,569 43,847 30,948 9,516 280 1 ,714 123 June 5................... 171,279 84,802 64,163 5,540 2,271 9,903 145 514 86,477 43,873 30,974 9,373 281 1 ,718 124 12.................... 171,904 85,584 66,401 5,014 1 ,941 9,428 139 492 86,320 43,853 30,979 9,247 275 1 ,695 128 19.................... 173,600 87,593 65,749 5,201 4,413 9,356 150 517 86,007 43,853 30,850 9,068 287 1,681 123 26.................... 171,756 85,445 64,844 5,899 2,516 9,087 147 507 86,311 44,030 30,977 9,067 293 1,679 117 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ WEEKLY REPORTING BANKS A-29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets—• Other Capital Total Total Large certificates liabilities accounts liabilities Total loans of deposit 10 Wednesday From From and loans (net) Demand F.R. others capital (net) adjusted deposits Banks accounts adjusted 8 and in­ adjusted 9 Total Issued Issued vestments 8 issued to I PC’s to others Large banks— Total 1967 36 6,660 10,964 19,821 24!,435 132,679 89,287 71 ,908 19,275 12,281 6,994 ..................June 7 35 6,803 10,938 19,777 247,095 134,321 91.246 74,225 19,280 12,215 7,065 .............................14 381 6,793 11,170 19,761 248,353 136,425 193'511 72,659 18,934 11,851 7,083 ............................21 65 7,187 11,128 19,813 246,442 136,042 91 825 73,174 19,135 12,005 7,130 ............................28 1.968 539 7,655 13,507 20,938 268,036 144,872 205,757 78,384 19,708 12,319 7,389 143 8,547 14,162 20,944 262,456 143,789 204,852 74,426 19,748 12,337 7,411 ...............' . . 8 724 8,873 14,477 21,029 268,862 144,270 205,988 75,616 19,528 12,174 7,354 ............................15 206 8,577 14,858 21,017 263,687 143,727 204,886 74,744 19,540 12,169 7,371 ............................22 335 8,270 14,839 21,055 263,777 143,667 204,803 76,136 19,543 12,128 7,415 ............................29 247 9,027 15,084 21,174 266,611 145,022 206,171 76,190 19,468 12,170 7,298 354 9,006 15,376 21,186 269,022 145,305 206,297 77,474 19,452 (2,212 7,240 .............................(2 1,751 8,546 15,051 21,138 271,328 147,846 208,868 76,302 19,029 11,837 7,192 ........... 19 221 10,038 15,175 21,161 269,665 147,730 207,910 77,927 19,271 12,034 7,237 ............................26 blew York City 1967 2,048 5,185 5,388 58,356 32,522 42,970 16,775 6,801 4,494 2,307 2,374 5,095 5,384 61,502 33,316 43,931 17,587 6,907 4,499 2,408 .............................14 77 2,269 5,202 5,374 61,415 34,108 44,925 17,121 6,704 4,264 2,440 ............................21 2,358 5,317 5,378 61 ,313 33,859 44,032 17,173 6,719 4,240 2,479 ............................28 1968 2,597 6,551 5,600 66,378 35,591 ' 46,707 18,801 6,063 4,008 2,055 ..................May 1 2,492 7,073 5,598 64,225 34,989 45,832 16,519 6,066 4,030 2,036 ..............................8 172 2,745 7,114 5,737 66,319 35,321 46,338 16,786 5,979 3,965 2,014 ............................15 2,158 7,490 5,720 64,849 35,118 46,044 16,820 5,945 3,959 1,986 ............................22 75 2,233 7,385 5,713 65,321 35,203 46,240 17,381 5,873 3,861 2,012 ............................29 10 2,458 7,536 5,746 65,550 35,580 46,676 17,514 5,859 3,901 1,958 2,857 7,782 5,750 67,585 35,881 47,051 17,704 5,911 3,978 1,933 .............................12 696 2,501 7,509 5,741 67,689 36,853 48,019 17,022 5,674 3,743 1,931 19 3,273 7,484 5,738 67,809 36,572 47,440 17,603 5,803 3,851 1,952 ............................26 Outside blew York City 1967 36 4,612 5,779 14,433 183,079 100,157 146,317 55,133 12,474 7,787 4,687 ..................J une 7 35 4,429 5,843 14,393 185,593 101,005 147,315 56,638 12,373 7,716 4,657 ............................14 304 4,524 5,968 14,387 186,938 102,317 148,586 55,538 12,230 7,587 4,643 ..................... .21 65 4,829 5,811 14,435 185,129 102,183 147.793 56,001 12,416 7,765 4,651 ............................28 1968 539 5,058 6,956 15,338 201,658 109,281 59,050 59,583 13,645 8,311 5,334 143 6,055 7,089 15,346 198,231 108,800 59,020 57,907 13,682 8,307 5,375 ..............................8 552 6,128 7,363 15,292 202,543 108,949 59,650 58,830 13,549 8,209 5,340 .............................15 206 6,419 7,368 15,297 198,838 108,609 58,842 57,924 13,595 8,210 5,385 ............................22 260 6,037 7,454 15,342 198,456 108,464 58.563 58,755 13,670 8,267 5,403 ............................29 237 6,569 7,548 15,428 201,061 109,442 159.495 58,676 13,609 8,269 5,340 354 6,149 7,594 15,436 201,437 109,424 59’246 59,769 13,541 8,234 5,307 .............................(2 1,055 6,045 7,542 15,397 203,639 110,993 160,849 59,280 13,355 8,094 5,261 .............................19 221 6,765 7,691 15,423 201,856 111,158 160,470 60,324 13,468 8,183 5,285 ............................26 * After deduction of valuation reserves. 2 Individual items shown gross. 10 Certificates of deposit issued in denominations of $1 00,000 or more. 3 Includes short-term notes and bills (less than 1 year to maturity) Issued by States and political subdivisions. * Federal agencies only. Note.—Beginning June 29, 1966, coverage of series was changed from 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 pearlier 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 • Exclusive of loans to domestic commercial banks. deposit in denominations of $100,000 or more. For description of revisions, » 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-3U BUSINESS LUANS UL BANKS □ JULY lybB COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during—• Industry 1968 1968 1968 1967 1968 1967 June June June June May 1st 2nd 26 19 12 5 29 June May Apr. II 1 IV half ' half Durable goods manufacturing: Primary metals............................. 1 ,947 1 ,920 1 ,868 1 ,852 1 ,757 190 29 90 309 262 184 571 287 Machinery......................................... 4,576 4,556 4,391 4,410 4,338 238 -272 80 46 240 -248 286 -630 Transportation equipment........ 1 ,856 1 ,890 I ,794 1,801 I ,754 102 -13 -53 36 8 -113 44 -136 Other fabricated metal products. . . 1 ,906 1 ,883 1 ,850 1 ,840 ! ,832 74 32 44 150 60 -103 210 -281 Other durable goods........................ 2,210 2,192 2,155 2,144 2,093 117 29 48 194 20 -152 214 -142 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,237 2,272 2,196 2,236 2,186 51 -152 -126 -227 -294 587 -521 615 Textiles, apparel, and leather.......... 2,276 2,258 2,196 2,170 2,157 1 19 13 70 202 325 -385 527 -410 Petroleum refining........................... 1,486 1 ,481 1 ,433 1 ,422 1 ,423 63 '-15 r-3 45 -113 91 -68 -113 Chemicals and rubber..................... 2,512 2,487 2,474 2,446 2,473 39 -75 91 55 116 29 171 -83 Other nondurable goods................. 1 ,800 1 ,805 1 ,763 1 ,744 1 ,745 55 -20 23 58 14 -35 72 95 Mining, including crude petroleum and natural gas................................. 4,742 4,750 4,721 4,712 4,727 15 -133 179 61 497 384 558 164 Trade: Commodity dealers................. 1,108 1 ,098 1 ,094 1,118 1,157 -49 -65 -108 -222 -275 501 -497 679 Other wholesale....................... 3,157 3,145 3,147 3,139 3,134 23 -51 1 19 91 9 162 100 96 Retail............................. 3,730 3,736 3,684 3,678 3,660 70 8 154 232 -28 -ll 204 6 Transportation..................................... 4,967 4,950 4,905 4,853 4,800 167 151 87 405 155 333 560 428 Communication................................... 1,101 1 ,080 994 992 976 125 13 36 174 -72 9 102 4 Other public utilities....................... 2,209 2,190 2,011 1,991 1 ,950 259 -49 2 212 -419 1 10 -207 258 Construction......................................... 2,774 2,771 2,715 2,704 2,696 78 99 44 221 42 -58 263 -103 Services................................................ 5,543 5,524 5,450 5,428 5,381 162 111 101 374 173 304 547 221 All other domestic loans..................... 7,302 7,210 7,098 7,020 7,079 223 59 237 519 100 224 619 356 Bankers’ acceptances........................... 811 777 772 797 818 -7 -115 -150 -272 -120 30! -392 554 Foreign commercial and industrial loans.................................................. 2,591 2,598 2,588 2,579 2,588 3 -90 -14 -101 -48 -15 -149 -112 Total classified loans........................... 62,841 62,573 61,299 61 ,076 60,724 2,(17 -506 951 2,562 652 2,099 3,214 1 ,753 Total commercial and industrial loans. 69,240 68,999 67,663 67,419 67,054 2,186 -519 1 ,060 2,727 695 2,446 3,422 2,049 See Note to table below. “TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during—• 1968 1967 1968 1967 1968 Industry June May Apr. Mar. Feb. Jan. Dec. Nov. Oct. 1st 26 29 24 27 28 31 27 29 25 II I IV HI half Durable goods manufactur­ ing: Primary metals................... 1 ,339 1,(99 1,185 1,1(2 1 ,027 908 874 728 710 227 238 182 61 465 Machinery.......................... 2,279 2,188 2,231 2,154 2,064 2,067 2,001 1 ,982 2,012 125 153 38 -156 278 Transportation equipment. 908 944 953 889 849 859 888 898 856 19 I 52 20 Other fabricated metal products..................... 759 733 696 692 670 667 675 673 672 67 17 4 6 84 Other durable goods......... 1 ,028 1 ,003 991 994 984 1 ,006 1 ,017 992 965 34 -23 11 -27 11 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 821 817 813 876 865 818 758 733 718 -55 118 30 37 63 Textiles, apparel, and leather......................... 566 556 562 555 524 485 465 455 450 11 90 44 -6 10I Petroleum refining............. 1 ,226 1,176 1,152 1,164 1,195 1 ,200 1 ,256 1 ,240 1 ,178 62 -92 102 -124 -30 Chemicals and rubber....... 1 ,619 1 ,583 1 ,647 1 ,613 1,544 1 ,538 1 ,532 1 ,484 1 ,546 6 81 10 53 87 Other nondurable goods. . 1 ,051 1 ,062 1 ,072 1 ,061 1 ,049 1 ,048 1 ,070 1 ,017 1 ,031 - IO -9 44 102 -19 Mining, including crude pe­ troleum and natural gas... 4.121 4,152 4,233 4,047 4,014 3,996 3,571 3,177 3,157 74 476 385 -197 550 Trade: Commodity dealers . . 113 111 110 115 103 111 107 104 99 -2 8 5 3 6 Other wholesale........ 634 637 624 585 588 575 576 563 526 49 9 61 22 58 Retail......................... 1 ,144 1,105 1,119 1 ,098 1,093 1,111 1,083 1 ,066 1 ,050 46 15 13 8 61 Transportation....................... 3,703 3,610 3,503 3,503 3,432 3,426 3,343 3,176 3,136 200 160 236 106 360 Communication............ 446 432 404 412 409 419 443 435 433 34 -31 4 -1 3 Other public utilities............. 815 749 731 710 741 717 715 715 659 105 -5 74 -20 100 Construction.......................... 769 737 737 706 680 686 682 693 666 63 24 -1 -15 87 Services................................... 2,303 2,268 2,243 2,229 2,187 2,163 2,121 2,038 1 ,988 74 108 119 -49 182 All other domestic loans .... 905 864 877 879 844 871 873 792 789 26 6 36 6 32 Foreign commercial and in­ dustrial loans.................. 1,934 H.953 1,971 rl ,976 *1 ,981 2,009 2,027 1,989 2,025 -42 *■-51 -59 -63 -93 Total loans............................. 28,483 r27,879 27,854 *•27,370 *■26,843 26,680 26,077 24,950 24,666 1,113 *1,293 1 ,390 -253 2,406 Note.—-About 161 weekly reporting banks are included in this series; Commercial and industrial “term” loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—-revolving credit or standby—-on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of I year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry”, February 1967 Bulletin, p. 209. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INTEREST RATES A-31 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) May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 Percentage distribution of dollar amount Less than 6.50.............................. 7.3 64.6 16.0 32.2 6.7 31.1 4.7 48.9 6.3 69,9 8.2 81.2 6.50.............................................. 34.5 7.8 7.3 8.2 11.3 12,9 2I .4 10.8 32.3 7.8 47.6 4.9 6.51-6.99..................................... 23,0 (0.5 9.4 12.6 14.1 19,4 24.2 15.2 30.5 8,8 22.6 6.2 7.00............................................. 9.1 6. 1 14.0 13.6 16,3 11.5 13.1 8.8 9.1 5.0 5.4 3.3 7.01-7.49..................................... I 1.0 3.8 13.7 14.8 18.5 10.0 15.6 5.1 8.5 3,5 7.7 1,3 7.50............................................... 5.3 3.1 10.9 4.8 10.7 4.7 6.2 4.0 5.5 1.7 3.3 2.6 7.51-7.99..................................... 3.2 1 .1 12. 1 5.2 8.5 3.0 5. 1 1.5 2.3 0.9 0.9 0.1 8.00.............................................. 3.2 1 .1 6.4 3.9 4.9 2.8 3.7 1.7 2.9 0,7 2.6 0.3 Over 8.00.................................... 3.5 1 .8 10. 1 4.6 9.0 4.4 5.7 3.9 2.5 1,7 1.7 0.3 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; Dollar (millions)..................... 4,177.5 3,576.5 60. 1 58.5 484.7 455.9 955.3 833.0 623.2 536.6 2,054.1 1,692.4 Number (thousands)................ 38.5 36.6 15.8 15.6 15.9 15.1 4.9 4.4 1 .0 0.9 0.9 0.7 Center Weighted average rates (per cent per annum) 35 centers................. 6.84 6.36 7.18 6.82 7.21 6.76 7.00 6.56 6.81 6.31 6.68 6.19 New York City.., 6.60 6.14 7.11 6.71 7.07 6,65 6.82 6.39 6.64 6,15 6.52 6.06 7 Other Northeast, 7. 18 6.73 7.21 6.84 7.48 7,00 7.33 6.85 7.09 6.62 6.90 6.48 8 North Central... 6.89 6.35 7.30 6.95 7.26 6.83 7.06 6.62 6.90 6.36 6.76 6.18 7 Southeast.......... 6.61 6.21 6.89 6,57 6.83 6.43 6.65 6.25 6.53 6.01 6.37 6.04 8 Southwest.......... 6.87 6.41 7.16 6.75 7.02 6.54 6.85 6.39 6.72 6.27 6,86 6.42 4 West Coast.... 6.76 6.31 7.68 7.37 7.37 7.00 6.95 6,62 6.80 6.33 6.54 6.03 Note.—'Beginning Feb. 1967 the Quarterly Survey of Interest Rates on 1960—Aug. 23 41/2 1967—Jan. 26-27 51,4-55/4 Business Loans was revised. For description of revised series see pp. 721­ 1965—Dec. 6 5 Mar. 27 514 27 of the May 1967 Bulletin. 1966—Mar. 10 51/2 Nov. 20 6 Bank prime rate was 5 per cent during the period Jan. 1, 1960—Aug. June 29 5% 1968—Apr. 19 6«/4 22, 1960. Changes thereafter to new levels (in per cent) occurred on the Aug. 16 6 following dates: MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period p c a o p m e l r . , p p l a a p ce e d r b a a c n c k e e p r t s ­ ’ F f e u d n e d r s a l 3-month bills 5 6-month bills 5 9- to 12-month issues 3- to 5- 4- to 6- directly, ances, rate 3 year months 1 m 3 o - n to th s 6 - 2 90 days 1 n R ew at e is s o u n e M y a ie r l k d et n R ew at e is o su n e M y a ie r l k d et B k i e ll t s y ( i m el a d r ) ­ 5 Other 6 issues 7 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—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 Feb.................. 5.50 5.25 5.23 4.72 4.969 4.97 5.144 5.17 5.22 5.37 5.59 Mar................. 5.64 5.40 5.50 5.05 5.144 5.16 5.293 5.33 5.40 5.55 5.77 Apr.................. 5.81 5.60 5.75 5.76 5.365 5.37 5.480 5.49 5.44 5.63 5.69 May................ 6.18 5.99 6.04 6.12 5.621 5.65 5.785 5.83 5.83 6.06 5.95 June................ 6.25 6.04 5.96 6.07 5.544 5.52 5.652 5,64 5.67 6.01 5.7! Week ending—• 1968—June 1........... 6.25 6,00 6.00 6.02 5.696 5.70 5.869 5.86 5,90 6.20 5.91 8........6...25 6.00 5,90 5.93 5.649 5.66 5.699 5.72 5.72 6.08 5.80 15.......... 6.25 6.03 5.95 6.18 5.713 5.68 5.790 5.75 5.75 6.07 5.75 22.......... 6.25 6.06 6.00 6.20 5.578 5.45 5.633 5.58 5.59 5.95 5.61 29.......... 6.25 6,06 6.00 6.14 5.238 5.30 5.485 5.51 5.62 5.93 5.67 1 Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. 5 Bills quoted on bank discount rate basis. maturities in the 90-179 day range. 6 Certificates and selected note and bond issues. 3 Seven-day average for week ending Wednesday. 7 Selected note and bond issues. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-32 INTEKESI KAILS a JULY WW 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) Total1 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 ­ I960............................................... 4.01 3.69 3.26 4.22 4.73 4.41 5. 19 4.59 4.92 4.69 4.75 3.47 5 88 1961............................................... 3.90 3.60 3.27 4.01 4.66 4,35 5.08 4.54 4.86 4.57 4.66 2.98 4 76 1962............................................. 3.95 3.30 3.03 3.67 4,62 4,33 5.02 4.47 4.86 4.51 4.50 3.37 6 06 1963 4.00 3.28 3.06 3.58 4.50 4.26 4,86 4,42 4.65 4.41 4.30 3.17 5 68 1964. 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5 54 1965 4.21 3.34 3.16 3.57 4,64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5 87 1966. 4.66 3.90 3.67 4.21 5,34 5.13 5.67 5,30 5.37 5.36 4.97 3.40 6 72 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 ?5 70 1967-—Tune 4.86 4.02 3.80 4.31 5.75 5.44 6.15 5.64 5.80 5.80 5.30 3.19 5 85 July. 4,86 4.11 3.86 4.43 5.86 5.58 6.26 5.79 5.88 5.91 5.34 3.15 Aug. 4.95 4.06 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 5 61 Oct.. 5.18 4.25 3.88 4.64 6,14 5.82 6.52 6.05 6.24 6.12 5.59 3.07 Nov. 5.44 4.32 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 r5 72 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 Feb. 5.16 4.28 4.01 4.69 6.40 6.10 6.80 6.31 6.65 6.36 5.65 3,28 Mar. 5.39 4.54 4.28 4.89 6.42 6.11 6.85 6,33 6.67 6,39 5.80 3.34 6 17 Apr 5.28 4.44 4,13 4.84 6.53 6.21 6.97 6.42 6,79 6.54 5.86 3.12 May 5.40 4.59 4.28 4.96 6.60 6.27 7.03 6.49 6,87 6.60 5,92 3.07 Tuna. 5,23 4.59 4.21 5.06 6.63 6.28 7.07 6.54 6.88 6.60 5.90 3.00 Week ending— Mar 2............................. 5.19 4.39 4.16 4,78 6.38 6.09 6.80 6.30 6.64 6.34 5,66 3.31 9 ............................ 5.28 4.49 4.27 4. 86 6.38 6.07 6.81 6.30 6.64 6,34 5.74 3.35 16............................. 5.49 4.55 4.28 4.90 6.38 6,08 6.81 6.30 6.64 6,35 5.71 3.32 23 ......................... 5.41 4.54 4.28 4.89 6.43 6.14 6.87 6.35 6,69 6.39 5.88 3.36 30.............................. 5.42 4.56 4.28 4.91 6,49 6.17 6.93 6.40 6.71 6.48 5.86 3.33 Apr. 6.............................. 5.25 4.47 4.18 4.84 6.54 6.20 6.98 6.43 6,77 6,54 5.84 3.19 13.............................. 5.21 4.40 4.08 4.83 6.52 6.19 6.98 6.39 6.77 6.55 5.81 3.12 20.............................. 5,28 4.40 4.08 4,83 6.52 6.20 6.95 6.38 6.78 6.54 5.86 3.08 27 ........................... 5.33 4.48 4.18 4.84 6.54 6.22 6.96 6.42 6.81 6.54 5.91 3.09 May 4 ......................... 5.32 4.49 4.20 4.84 6.58 6.25 7.00 6.47 6.85 6.57 5.93 3.06 11 ......................... 5.32 4.44 4.16 4.83 6.59 6.25 7.01 6.47 6.86 6.58 5.89 3.05 18 ........................... 5.38 4.53 4.25 4.85 6.59 6.27 6.99 6.48 6.86 6.57 5.86 3.08 25 ..................... 5.52 4.70 4. 35 5.10 6.61 6,28 7.05 6.50 6.89 6.60 5.97 3.10 [ ..................... 5.43 4.78 4.42 5.18 6.64 6,29 7.10 6.52 6.90 6.64 5.96 3.07 8 .......................... 5.30 4,65 4,25 5.16 6.64 6.29 7.09 6.52 6.89 6.64 5.89 3.02 15 ........................... 5.27 4.65 4,25 5.16 6.63 6,28 7.08 6.53 6,89 6.61 5.93 2.96 22 ............................ 5.18 4.53 4.15 4,96 6.63 6.29 7.07 6.56 6,90 6.59 5.90 3.01 29.............................. 5. 15 4.54 4.18 4.96 6.61 6.27 7.04 6.55 6.86 6.57 5.87 3.01 10-11 20 5 5 120 30 30 40 40 40 14 500 500 i 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

JULY 1968 □ SECURITY MARKETS A-33 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) thousands of Amer­ shares Period Standard and Poor's index New York Stock Exchange index ican (1941-43= |0) (Dec. 31, 1965= 50) Stock Exchange U.S. total Govt, State Cor­ Indus­ Rail­ Public Indus­ Trans­ Fi­ index i NYSE AMEX (long­ and porate Total trial road utility Total trial porta­ Utility nance term) local AAA tion 1965.......................... 83.76 110.6 93.9 88.17 93.48 46.78 76.08 47.39 n.a. n,a. n.a. n.a. 12.05 6,174 2,120 1966......................... 78.63 102.6 86.1 85.26 91.09 46.34 68.21 46.15 46.19 50.28 45.41 44.25 14.67 7,538 2,741 i ......................... 76.55 100.5 81 .8 91 .93 99.18 46.72 68,10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1967—June 76.37 100.2 81.7 91.43 98,61 48.19 67.39 50.54 51,55 54.97 45.95 47.51 19.28 9,666 4,647 76.39 99.3 81.1 93.01 100,38 49.91 67,77 51.67 53,13 57.30 44.87 49.85 20.79 10,834 5,202 Aug............... 75.38 99.6 80.3 94.49 102.11 50.43 68,03 52.46 54.20 56.80 44.69 51.24 21 .25 9,037 4,393 Sept............... 75.04 98.0 80.0 95.81 103.84 49.27 67.45 53,23 55.28 54.89 44,57 52.98 22.05 10,251 5,236 Oct,......... 73,01 95.9 78.5 95.66 104,16 46.28 64,93 53.13 55.62 51.56 43.33 52.69 22.64 10,223 5,865 Nov............... 70,53 95.2 76.8 92.66 100,90 42.95 63.48 51.40 53.79 48.43 42.39 50.19 21.83 10,578 4,543 Dec......... 71.22 93.6 75.9 95.30 103,91 43.46 64.61 53.06 55.80 48.73 42.75 52.37 23.57 11,476 5,303 1968—Jan................. 73.09 95.6 77.2 95.04 103.11 43.38 68.02 53.24 55.45 47.90 44.87 55.89 24.95 11,947 7,309 Feb................ 73.30 94.8 77.5 90.75 98.33 42.35 65.61 50.68 52.63 45.15 43.36 53.88 22.43 9,182 4,065 Mar............... 70,98 92.7 76.9 89.09 96.77 41.68 62.62 49.48 51.54 43.29 41.78 52.98 22.21 9,178 3,600 Anr ........ 72.06 94.7 76,2 95.67 104.42 44.79 63.66 53.23 56.03 46.85 42.46 57.56 24.39 14,779 6,536 May 70.89 92.7 75.3 97.87 107.02 48.00 62.92 54.85 58.04 49.92 42.07 60.43 27.17 13,276 8,142 June 72.58’ 92.8 75.6 100,53 109.73 51.72 65.21 56.64 59.83 52.86 43.30 64.60 29,20 15,139 7,491 Week ending— 1968—June 1........ 70.56 91.6 75.1 97,80 106.95 49.56 62.33 55,01 58.27 50.96 41.65 61.26 28.24 13,445 9,223 8........ 71.81 92.3 75.3 100,44 109.95 51.33 63.08 56.54 60.07 52.90 41.95 63.40 29.21 16.413 9,078 15........ 72.11 92. 1 75.2 101.36 110.90 52,52 63.85 57, 16 60.67 54.02 42.44 64.76 29.66 16,595 8,742 22........ 73,07 93.2 75.9 100.32 109.30 51.52 66.63 56.55 59,50 52.39 44.25 64.80 29.16 13,992 6,241 29........ 73.35 93.5 75,9 100.01 108.74 51.62 67.83 56.33 59.04 52.10 44.90 65.75 28.77 13,239 5.507 i Begins June 30, 1965, at 10.90. On that day the average price of a share cent, 20-year bond. Municipal and corporate bonds, derived from average of stock listed on the American Stock Exchange was $10.90. yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, Note.—Annual data are averages of monthly figures. Monthly and 20-year bond; Wed. closing prices. Common stocks, derived from com­ weekly data are averages of daily figures unless otherwise noted and are ponent common stock prices. Volume of trading, average daily trading in computed as follows: U.S. Govt, bonds, derived from average market stocks on the exchange for a 5’A-hour trading day. yields in table at bottom of preceding page on basis of an assumed 3 per MORTGAGES: NEW AND EXISTING HOMES (Per cent) Secondary market Contract rate on conventional first mortgages FHA series Yield FHLBB series Period on FHA- (effective rate) insured New Existing U.S. North­ Middle South­ North South­ New New Existing average east Atlantic east Central west West 1963 5.46 5.81 5.81 5.60 5.70 5.79 5.74 6.11 5.87 1964 5.45 5.80 5.65 5.69 5.78 5.74 6.12 5,85 1965 5.47 5.81 5.95 5,83 5.67 5.71 5.78 5.78 6.14 5.89 1966 6. 38 6.25 6.41 6.40 6.01 6.31 6.43 6.52 6.79 6.47 1967 6.55 6.46 6.52 6.53 6.07 6.45 6.60 6.69 6.87 6.57 1967- May - - - 6.44 6.37 6.40 6.45 6.05 6.40 6.45 6,60 6.80 6.50 June.... 6.51 6,35 6.39 6.50 6.05 6.40 6.50 6.65 6.80 6.50 July.......... 6.53 6.43 6.41 6.50 6.05 6.45 6.60 6.65 6.80 6.55 Aug...... 6.60 6.40 6.46 6.55 6.05 6.50 6.60 6.65 6.90 6.55 Sept 6.63 6.44 6.47 6.55 6.05 6.45 6.65 6.65 6.95 6.60 Oct.......... 6.65 6.47 6.52 6.55 6.05 6.50 6.65 6.70 6.90 6.60 Nov ... . 6.11 6.45 6.55 6.65 6.10 6.60 6.75 6.90 7.00 6.70 Dec.. . . 6.81 6.54 6.64 6.10 6.10 6.60 6.80 6.95 7.10 6.75 1968-—Jan........... 6.81 6.52 6.70 6.75 6.30 6.00 6.70 6.80 7.00 7.10 6.80 Feb........... 6.78 6,62 6.71 6.75 6.30 6.00 6.70 6.80 7.00 7.15 6.80 Mar...... 6.83 6.64 6.72 6.80 6.30 6.15 6.75 6.85 6.95 7,20 6.80 Apr......... 6.94 6.71 6.77 6.90 6.45 6.30 6.90 6.90 7.15 7.35 6.95 May........ "6.83 "6.94 7.15 6.70 6.90 7.10 7.00 7.35 7.45 7.20 June .. . Note.—Annual data are averages of monthly figures. The FHA data contract interest rates. The FHA series on average contract interest rates are based on opinion reports submitted by field offices on prevailing local on conventional first mortgages in primary markets are unweighted and conditions as of the first of the succeeding month. Yields on FHA-in- are rounded to the nearest 5 basis points. The FHLBB effective rate series sured mortgages are derived from weighted averages of private secondary reflects fees and charges as well as contract rates (as shown in the table on market prices for Sec. 203, 30-year mortgages with minimum downpay­ conventional first mortgage terms, p. A-51) and an assumed prepayment ment and an assumed prepayment at the end of 15 years. Gaps in the data at end of 10 years. are due to periods of adjustment to changes in maximum permissible Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

H—OH- oiuurx iviHrmci uhluii u jult iyoo STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In million of dollars) (Per cent of total adjusted debt, unless otherwise indicated) Credit extended to Cus­ Adjusted debt/collateral value margin customers by—• Cus­ tomers’ Net Total tomers’ net credit ad­ End of period net free ex­ Un­ justed debit credit tended re­ Restricted debt Brokers Banks Total bal­ bal­ by End of period stricted (mil­ 1 2 ances ances brokers lions of 30 per 30-39 40-49 50-59 60 per dol­ 1967—Apr................ 5 100 2,150 7,250 5 896 2 078 3 818 cent per per per cent lars) May............... 5 180 2 160 7*340 5,966 2 220 3’746 or less cent cent cent or more June............... 5,360 2,170 7’530 6,195 2,231 3,964 July................ 5,480 2,200 7,’68O 6 636 2 341 4 295 Aug................ 5 650 2’260 7,910 6 677 2 281 4 396 1967—Apr................. 24 4 42.9 9 9 5 4 17 4 10 120 Sept................ 5,790 2’340 8,130 6’944 2,401 4,543 May.............. 5 1 60 5 10 9 5 7 17 8 10 200 Oct.......... 6,010 2,'420 8’430 7 111 2’513 4 598 June......... 9 8 57.7 9 8 5* 1 17 6 10*530 Nov.......... 6,050 2^440 8,490 7 200 2’500 4,700 July................ 23 5 47.1 9 1 4^2 160 10*680 Dec.......... 6,300 2'460 8,760 7 948 2,763 5,183 Aug. 72 62.7 9 7 4 5 15 9 10 840 Sept................ 16 8 52 6 8 5 4 4 17 7 11’300 1968—Jan................. 6,170 2,430 8,600 7,797 2,942 4,855 Oct................. 80 58 4 9 9 5 0 1 8 7 11 550 Feb.............. 6,150 2,420 8^570 7 419 2'778 4^641 Nov................ 107 56 4 9 7 s’ I 18 2 1 1 360 Mar................ 6,190 2,'370 8,560 7’248 2,692 4,'556 Dec................ 198 47.9 9.1 4 6 18 7 12 020 Apr................. 6,430 2,350 8,780 7,701 2,979 4,722 1968—Jan................. 5 3 60. 3 1 1 .7 4 6 10 2 11 940 Feb................ 4 1 56 8 14.4 5 3 19 4 11 870 1 End of month data. Total amount of credit extended by member firms Mar................ 5.9 53.3 15.5 6 1 19 2 11 ’ 700 of the N.Y, Stock Exchange in margin accounts, estimated from reports Apr................ 19.8 46.1 10.8 4.7 18^7 12,*270 by a sample of 38 firms. 2 Figures are for last Wed. of month for large commercial banks re­ porting weekly and represent loans made to others than brokers or dealers Note.—Adjusted debt is computed in accordance with requirements set for the purpose of purchasing or carrying securities. Excludes loans col­ forth in Regulation T and often differs from the same customer's net debit lateralized by obligations of the U.S. Govt. balance mainly because of the inclusion of special miscellaneous accounts Note.—Customers’ net debit and free credit balances are end-of-month in adjusted debt. Collateral in the margin accounts covered by these data ledger balances as reported to the N.Y. Stock Exchange by all member firms now consists exclusively of stocks listed on a national securities exchange. that carry margin accounts. They exclude balances carried for other Unrestricted accounts are those in which adjusted debt does not exceed the member firms of national securities exchanges as well as balances of the loan value of collateral (30 per cent of current market value during the reporting firm and of its general partners. Net debit balances are Itotal time period covered in this table); accounts in all classes with higher debt owed by those customers whose combined accounts net to a debit. ratios are restricted. Data beginning June 8, 1968, will show as “restricted” Free credit balances are in accounts of customers with no unfulfilled com­ accounts where debt exceeds 20 per cent of collateral values. mitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use until withdrawn. EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, unless otherwise indicated) (Per cent of total, unless otherwise indicated) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total (mil­ End of period credit balance End of period lions status 60 per cent Less than (millions of 70 or Under or more 60 per cent of dollars) dol­ more 60-69 50-59 40-49 40 lars) 1 1967—-Apr..................... 49.4 47.8 2,8 5,190 May......... 49.8 47.0 3 1 5 300 1957—Apr................. 5,100 52.0 23.4 10,3 5.3 9.0 June................ 49.5 47.8 2.7 5*380 May......... 5,180 42.9 31.6 10.8 5.7 8.9 July..................... 46.9 50.4 2 7 5 370 June............... 5^360 48.7 28.3 9.2 5.2 8.6 Aug..................... 47.7 49.3 3 0 5*340 July................ 5,480 54.0 24.5 9.0 3.8 8.7 Sept...................... 50.7 46.6 2.7 5 610 Aug................ 5^650 46.0 32.2 9.4 4.2 8.2 Oct....................... 47.8 49.0 3.2 5 680 Sept................ 5^790 52.1 25.6 8.8 3.9 9.6 Nov...................... 48.8 47.8 3.4 5*490 Oct........... 6,010 45.2 30.4 10,1 4.6 9.6 Dec...................... 50.0 47.0 3.0 5 850 Nov......... 6,050 43.8 31.8 9.7 4.9 9.9 Dec................. 6,300 50.6 25.8 9.0 4.1 10.5 1968—Jan....................... 50.8 45.6 3.6 6 060 Feb...................... 51.1 45.0 3 8 6 080 1968—Jan.................. 6,170 40.6 35.4 9.5 4.4 10.0 Mar............ 52.5 42.9 4 5 5*820 Feb................. 6,150 33.8 38.3 12.0 5.2 10,7 Apr...................... 46.3 47.9 5.8 6,030 Mar............... 6’190 32.1 37.6 14.1 5.3 11.0 Apr................ 6,430 48.7 26.4 10.2 4.3 10.4 Note.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional i See footnote 1 to table above. purchases. Balances may arise as transfers based on Ioan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral value. When data become available for period beginning June 8, 1968, table will show separately equity class of 80 per cent or more, re­ flecting the new level of initial margin requirements. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ OPEN MARKET PAPER; SAVINGS INSTITUTIONS A-35 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 Placed Placed Total Banks Others p I o m rt ­ s p E o x rt ­ s Dollar shi p p o p i e n d t s b i e n tw — een Total through direct­ into from ex­ 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 r n ­ . U St n a i t t e e s d U S n ta it 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 e s 1962..................... 6,000 2,088 3,912 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 1963..................... 6^747 1,928 4,819 2,890 1,291 1,031 260 162 92 1,345 567 908 56 41 1,317 1964..................... 8'361 2^223 6’138 3^85 1,671 1,301 370 94 122 1,498 667 999 111 43 1,565 1965..................... 9'058 1 ,'903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 27 35 1,564 1966..................... 13'279 3^089 10’190 3,603 1,198 983 215 193 191 2,022 997 829 103 80 1,595 1967—May.......... 17,067 4,713 12,354 3,964 1,339 1,147 192 70 348 2,207 949 998 38 46 1,933 June......... 16'150 4,934 11,216 41131 1,361 1,191 170 136 379 2,255 1,001 1,007 45 39 2*038 Tuly.......... 17^044 4'976 12^068 4,116 1,549 1,252 297 78 324 2,165 974 1,040 65 41 1,996 Aug......... • 16,816 4,979 11,837 4,103 l',584 11195 389 65 252 2,203 I ,020 989 70 75 1 ,949 Sept........... 16,220 5,124 11,096 41146 11635 1.239 396 52 205 2,254 1.037 991 68 91 1 ,958 Oct............ 16,777 5'186 11,591 4,136 1,822 1,298 524 54 163 2,096 1,085 956 51 83 1,961 Nov........... 17,147 5'136 12,011 41218 11878 1,376 501 59 151 2,130 1,095 975 52 124 1,971 Dec........... 17,084 4’901 12,183 4,317 1,906 11447 459 164 156 2; 090 1,086 989 37 162 2,042 1968 Jan............ 18,370 5,216 13,154 4,312 1,797 1,307 490 83 141 2,292 1,055 1,013 49 165 2,030 Feb............ 171813 5^493 12’,320 41266 11808 1,329 479 56 117 2,285 1,091 1 ,029 33 134 I ^979 Mar........... 18,487 5,832 12,655 41336 1 ,884 1,395 490 90 100 2,262 1,125 1,032 36 117 2,027 Apr........... 17'509 5^930 11*579 41430 1 ,778 1,409 369 87 1 18 2,447 1 ,229 1 ,025 18 116 2*042 May.......... 18*417 5^61 12*656 4,359 1 ,624 1,282 342 56 132 2,547 1 ,267 1,007 17 77 I ,’992 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— End of period M ga o g r e t­ Other G U o .S 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 O as t s h e e ts r g l T e i a a t n o i n b e e t d i s r a l a l i ­ l D i e ts p o 2 s­ l O ia t t i b e h i s e li r ­ G r c e o e s a u n e c r n e ­ v r t e s a l c M om or m tg i a t g m e e n lo ts a n 3 govt. other 1 reserve accts. Number Amount 1941............................. 4,787 89 3,592 1.186 829 689 11,772 10,503 38 1,231 1945 ....................... 4,202 62 101650 1.257 606 185 16,962 15,332 48 1,582 I960............................. 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 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1962............................. 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 114,985 2,548 1963............................. 36,007 607 51863 440 5,074 912 799 49,702 44,606 943 4,153 104,326 2,549 1964.............................. 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 135,992 2,820 1965............................. 44,433 862 51485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 120,476 2,697 1966............................. 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—May.................. 48,493 1,261 4,433 235 7,062 1,095 1,074 63,654 57,185 1,546 4,923 92,754 2,495 June.................. 48.771 1'226 41336 249 7,313 1,140 1,108 64,143 57,836 1,379 4,929 95,187 2,657 July................... 49,010 1,144 41396 246 7,642 1,084 1,116 64,639 58,169 1,563 4,908 91,559 2,647 Aug........... 49,322 1,210 4,367 242 7,910 1,034 1,117 65,201 58,499 I ,732 4,969 n.a. 2/192 Sept................... 49,557 1,152 4,406 243 8,054 999 1,147 65,559 59,066 1,525 4,967 n.a. 2,724 Oct.................... 49,827 11169 4,299 228 8,080 959 1,134 65,696 59,257 1,489 4,950 n.a. 2,710 Nov.................. 50,046 1,243 4,397 222 8,107 915 1,130 66,061 59,462 1,597 5,002 n.a. 2,684 Dec................... 50,311 1,203 4,319 219 9,320 993 1,138 66,365 60,121 1,260 4,984 n.a. 2,523 1968—Jan.................... 50,705 1,260 4,344 218 8,444 877 1,153 67,002 60,581 1,406 5,015 n.a. 2,416 Feb.................... 50’902 1 ,334 41405 220 8,672 903 1,156 67,592 60,945 1,575 5,071 n.a. 2,400 Mar................... 51,039 1.341 4,412 229 8,937 914 1,198 68,070 61,615 1,388 5; 067 n.a. 2,477 Apr.r................ 51/99 11267 4J3O3 221 9,113 871 1,190 68,165 61 ,554 1 ,553 5,058 n.a. 2,561 Maj”................ 51,402 1,474 4,374 214 91213 877 1,215 68,768 61,926 1 ,732 5,110 n.a. 2,669 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 5, p. A-18. 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. Figures for Jan. 1968 beginning with Aug. 1967. include one savings and loan that converted to a mutual savings bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period T as o s t e a ts l Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks M gag o e r s t­ e R st e a a t l e P lo o a l n ic s y a O ss th et e s r Statement value: 1941......................................... 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945........................................ 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 1960......................................... 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961......................................... 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5^683 1962......................................... 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 6,024 1963......................................... 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964........................................ 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965......................................... 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966........................................ 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7^760 Book value: 1964........................................ 149,470 12,343 5,594 3,785 2,964 62,112 55,735 6,377 55,197 4,534 7,141 8,143 1965........................................ 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......................................... 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,119 8,813 1967—'Apr.r................. 170,405 10,624 4,655 3,039 2,930 70,563 62,553 8,010 65,767 4,971 9,499 8,981 May............................. 171,238 10,655 4,746 3,015 2,894 70,610 62,607 8,003 66,253 4,952 9,615 9,153 June............................. 171,881 10,487 4,620 2,994 2,873 71,108 62,990 8,118 66,414 4,987 9,695 9,190 July............................. 173,129 10,516 4,605 3,001 2,910 72,194 63,856 8,338 66,324 5,026 9,735 9,334 Aug.............................. 173,839 10,557 4,665 2,980 2,912 72,666 64,205 8,461 66,506 5,050 9,808 9,252 Sept............................ 174,664 10,501 4,616 2,966 2,919 73,075 64,456 8,619 66,701 5,080 9,875 9,432 Oct............................... 175,390 10,551 4,655 2,981 2,915 73,546 64,822 8,724 66,884 5,100 9,933 9,376 Nov....................... 176,184 10,537 4,642 2,982 2,913 73,934 63,089 8,845 67,097 5,165 9,996 9,455 Dec.............................. 177,201 10,497 4,610 2,973 2,914 73,990 64,992 8,998 67,595 5,185 10,080 9,854 1968—Jan............................... 178,256 10,548 4,582 2,998 2,968 74,876 65,821 9,055 67,770 5,211 10,167 9,684 Feb.............................. 178,762 10,584 4,616 2,997 2,971 75,266 66,095 9,171 67,867 5,244 10,258 9,543 Mar............................. 179,477 10,562 4,582 3,007 2,973 75,760 66,412 9,348 68,055 5,263 10,362 9,475 Apr.............................. 180,411 10,493 4,496 3,016 2,981 76,087 66,661 9,426 68,123 5.303 10,474 9,931 1 Issues of foreign governments and their subdivisions and bonds of Year-encl 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 al! accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E pe n r d i o o d f M ga o ge rt s ­ s G e U c o . u v S r t . i , ­ Cash Otheri a li s a s T b e o i t l t s i a t 2 i l — e s S c a a v p i i n ta g l s u R n e d a s i n e v r d 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 lo e m n a m n ts i 4 t­ ties profits 1941.................... 4,578 107 344 775 6,049 4,682 475 256 1945.................... 5,376 2,420 450 356 8,747 7,365 644 336 402 1960.................... 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961.................... 68'834 5,211 3,313 41775 82,135 70,885 5^708 2,856 CSSO 1,136 1,908 1962.................... 78'770 5; 563 3,926 5,’346 931605 80,236 6,520 3; 629 1'999 1,221 2,230 1963.................... 90,944 6; 445 31979 61191 1071559 91,308 7,209 5^15 2,528 11499 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 71960 129,580 110,385 8,704 6,444 2,198 1,849 2,751 1966.................... 114’447 7’,771 3,362 8',416 1331996 114,009 9,102 7,464 1 ;272 2,149 1 '517 1967—May......... 115,909 8,072 3,859 9,376 137,216 118,041 9,055 4,630 1,710 3,780 3,081 June........ 116,944 7,987 3,997 9,232 138,160 119,976 9,268 4,559 1,918 2,439 3,250 July.......... 117,676 8,378 3,412 9,169 138,635 120,031 9,270 4,456 2,019 2,859 3,420 118,674 8,857 3,127 9,221 1391879 120,677 9; 265 4; 399 2330 3; 408 3; 443 Sept. 119,529 91017 3,078 9,158 140,782 121,870 9,255 4'382 2,158 3,117 3’337 Oct....... 120,362 91171 3,040 9,217 1411790 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 4355 2,241 4,070 3,287 Dec.......... 121,893 9,244 3,408 9,057 143,602 124,562 9 ,’557 4,739 2,281 2,463 3 ,’042 1968—Jan........... 122,095 9,505 2,827 9,101 143,528 124,133 9,571 4,735 2,204 2,885 3,128 Feb.......... 122,637 9,775 2’864 9,263 144,539 124,717 9,567 4,596 2,205 3,454 3,386 Mar,..... 123,426 9,968 2,909 9,334 145,637 125,993 9^557 4,512 2,324 3,251 3^40 Apr.r. ... 124;305 9; 824 2,769 9,325 146,223 125,698 9^552 4; 807 2,'461 3,705 4,051 Mayp.... 125,258 10,157 2,726 9,646 147,787 126,447 9,548 4,956 2,585 4,251 3,980 1 Includes other loans, stock in the Federal home loan banks, other * Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding page) would include loans in process. and fixtures. 2 Before 1958, mortgages are net of mortgage-pledged shares. Asset Note.— Federal Home Loan Bank Board data; figures are estimates for items will not add to total assets, which include gross mortgages with no all savings and loan assns. in the United States. Data beginning with 1954 deductions for mortgage-pledged shares. Beginning with Jan. 1958. no are based on monthly reports of insured assns. and annual reports of deduction is made for mortgage-pledged shares. These have declined noninsured assns. Data before 1954 are based entirely on annual reports. consistently in recent years from a total of $42 million at the end of 1957, Data for current and preceding year are preliminary even when revised. 3 Consists of advances from FHLB and other borrowing. Figures for Jan. 1968 reflect conversion of one savings and loan assn, to a mutual savings bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ FEDERALLY SPONSORED CREDIT AGENCIES A-37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks F M ed o e r r tg a a l g N e a A tio ss n n a , l Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a b A n t e e o d c r m s e ­ ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h t s B n a o o n n t d e d s s M po b d e s e e m i r ­ t s ­ C s a to p c it k al M l g o ( a A a o g n r ) e s t ­ D n t e a u ( o n b L 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 1961............. 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962............. 3; 479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963............. 4'784 11906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 1,952 3,310 2,834 1964............. 5,325 1,523 141 4,369 1,199 1,227 1,940 1,601 958 686 2,247 2,112 3,718 3,169 1965............. 5,997 1 .640 129 5,221 1 ,045 1,277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966............. 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.............. 4,386 2',598 127 4,060 1,432 1,395 5,348 4,919 I ,506 1 ,253 3,411 3,214 5,609 4,904 1967—May.. 4,421 4,004 93 5,050 1,831 1,392 4,455 3,938 1,316 1,101 3,423 3,186 5,248 4,611 June.. 4,302 3,738 95 4,577 1,927 1,392 4,450 4,078 1,296 1,042 3,545 3,297 5,303 4,611 July.. 4,221 3,420 81 4,585 1,522 1,392 4,507 3,469 1,335 1,072 3,639 3,419 5,358 4,644 Aug... 4,153 3,160 73 4,395 1,344 1,392 4,474 4,049 1,368 785 3,696 3,465 5,404 4,787 Sept... 4,122 2,898 63 4,160 1,318 1,394 4,838 3,927 1,384 1,094 3,523 3,450 5,449 4,787 Oct... 4,114 2,787 81 4,060 1,323 1,393 5,022 4,432 1,438 1,138 3,460 3,457 5,502 4,871 Nov,. 4,188 2,770 77 4,060 1,347 1,394 5,178 4,543 1,475 1,200 3,374 3,259 5,546 4,871 Dec... 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1 ,253 3,411 3,214 5,609 4,904 1968—Jan... 4,442 2,604 88 4,310 1,199 1.401 5,589 5,088 1,565 1,253 3,456 3,236 5,661 4,377 Feb... 4,348 2,775 95 4,373 1,182 1,412 5,802 5,149 1 ,595 1,416 3,529 3,336 5,721 4,990 Mar... 4,269 2,720 75 4,125 1,302 1,417 5,659 5,481 1,598 1,316 3,615 3,420 5,793 5,120 Apr... 4,545 2,416 91 4,125 1 ,271 1 ,422 6,110 5,650 1 ,549 1 ,322 3,728 3,526 5,853 5,120 May.. 4,7(9 2,337 97 4.151 1 ,319 1 ,425 6,251 5,650 1 ,482 1 ,280 3,835 3,640 5,923 5,222 Note.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the U.S. Mortgage Assn., and Farm Credit Admin. Among the omitted balance Govt.; for a listing of these securities, see table below. Loans are gross sheet items are capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks. Bonds, debentures, and notes are valued at par. They in­ for other agencies. clude only publicly offered securities (excluding, for the home loan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, MAY 31, 1968 Amount Amount Amount Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions of dollars) of dollars) of dollars) Federal home loan banks Federal National Mortgage Federal land banks—Cont. Notes: Association—Cont. Bonds: July 25, 1968....................5.45 300 Debentures: Aug. 20, 1968............... ...41/4 160 Aug. 26, 1968......................5% 500 Aug. 10, 1971....................4U 64 Oct. 21, 1968............... . .5.50 407 Sept. 25, 1968....................5.70 400 Sept. 10, 1971....................4’4 96 Dec. 23, 1968............... . .5.95 247 Oct. 25, 1968....................5.85 300 Feb. 10, 1972....................5U 98 Jan. 20, 1969.............. . .4% 341 Feb. 25, 1969....................5.85 400 June 12, 1972....................4% 100 Mar. 20, 1969............... ...4% 100 Apr. 25, 1969......................614 326 June 12, 1973....................4’4 146 Apr. 21, 1969............... ..5.60 250 Feb. 10, 1977....................4’4 198 July 15, 1969............... ...41/4 130 Bonds: July 15, 1969............... ...4% 60 Nov. 25, 1968......................5% 300 Oct. 20, 1969............... ...4W 209 Jan. 27, 1969......................5’A 300 Banks for cooperatives Jan. 20, 1970............... ...5% 209 Mar. 25, 1969......................5% 300 Debentures: Feb. 20, 1970............... ...5>4 82 Sept. 25, 1969........................6 400 June 3, 1968........ ...........53/4 352 Feb. 20, 1970............... ..6.30 344 Feb. 25, 1970........................6 200 July 1, 1968........ .........5.60 140 Apr. 1, 1970............... ...314 83 Mar. 25, 1970........................6 200 Aug. 1,1968........ ........5.65 364 Apr. 20, 1970............... ..6.20 362 Apr. 27, 1970........................6 225 Oct. 1, 1968........ ........5.80 208 July 20, 1970............... ...5% 85 Nov. 4, 1968........ .........5.90 216 July 20,1970............... .. .6 241 May 1,1971............... ...316 60 Federal National Mortgage Associa­ Sept. 15, 1972............... ...3% 109 tion—Secondary market opera­ Oct. 23, 1972............... ...5^ 200 tions Federal intermediate credit banks Feb. 20, 1973-78......... ...4>/, 148 Debentures: Feb. 20, 1974............... 155 Discount notes, 1,750 J J u u n ly e 3 1, , 1 1 9 9 6 6 8 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 . . 3 5 0 5 3 3 3 0 0 3 A Fe p b r . . 2 24 1 . , 1 1 9 9 7 7 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . 4 5 « 2 1 0 23 0 Aug, 1, 1968.....................5% G77 July 20,1976...................5% 150 De J S A J M b u u e p e n n a p n r y e e t . . t u 1 1 1 1 1 r 4 0 2 0 0 e , , , , , s : 1 1 1 1 1 9 9 9 9 9 6 6 6 6 6 8 9 9 9 8 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . 4 . . 6 . ’ . 4 ’ . 4 5 ^ 1 % ’4 0 o 4 3 2 3 0 5 5 0 8 0 0 0 0 8 O D S N J F a e e c e o n p b t c v . . t . , . . 1 2 3 3 4 2 , , , , , , ’ 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 9 8 8 8 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 6 . .5 5 . . . . 9 9 8 1 1 * 5 5 0 4 0 4 ’' 4 4 4 4 3 4 2 8 5 4 7 5 3 5 5 2 4 2 Te S B nn h o A J e o n a s r p d n s t r s e - . . t : e e 2 2 r V m 0 2 a , , ll n 1 1 e 9 o 9 y 7 7 t e A 9 8 s . . u . . . . . . t . . . h . . . . . . o . . . . . . r . . . . . i . . . t . . . . y . . . . . . . . . . . . . . .5 5 % 2 2 1 8 2 5 5 5 0 July 10,1969.......................5% 250 Nov. 15, 1985............... ..4.40 50 Dec. 12, 1969...................6 550 Federal land banks July 1, 1986............... ...4W 50 Apr. TO, 1970......................4% 142 Bonds: Feb. 1, 1987............... ...4U 45 Sept. 10, 1970......................4U 119 Feb. 15, 1967-72.............4’4 72 May 15, 1992..................5.70 70 Oct. 13, 1970......................5’4 400 Oct. 1, 1967-70...............4’4 75 Nov., 1992.................... •..6H 60 Mar. 11, 1971.....................6 350 June 20, 1968.....................4 186 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

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 n o e t v s r s t a . : ­ 1 E r T e q c o u t t a s a l . l 2 s : Budget f T P u l n r u u d s s s : t 3 A m L d e e j n s u t s s s : t 4 ­ E p T q a o u y t a t a s l l s . : pa o y r t s. C (d d h i i e a r n b n e c t g t e a I g n L e v b e n e y s . s s t : & , L N c e a o s s n h s: ­ Eq N u e a t ls: & agen.) trusts debt 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 56,300 131,698 38,654 6,779 163,572 -7,272 14,967 7,248 -103 7,822 Fiscal year—1964.......... 89,459 30,331 4,190 15,530 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 19,699 96,507 29,637 3,749 122,395 -2,696 6,933 2,356 250 4,328 1966.......... 104,727 34,853 4,451 34,480 106,978 34,864 4,026 137,817 -3,337 6,710 3,562 530 2,618 1967.......... 115,849 44,640 6,056 53,596 125,718 34,510 5,085 155,142 -1 ,546 6,734 10,852 -314 -3,804 k1967.......... 49,591 158,414 -8,823 10,391 6,840 ........3..,.5..5.1 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.-June........ 66,664 25,330 3,643 87,915 61,655 16,883 3,480 75,057 12,858 -4,308 7,482 -527 -11,263 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 ► July-Dec......... 67,292 86,809 -19,517 20,630 1,633 18,998 Month: 1967—May............ 6,289 5,367 303 11,295 10,915 2,897 -634 14,445 -3,150 3,372 4,213 -25 -816 June................ 18,304 5,262 1,982 21,501 10,131 3,443 812 12,762 8,739 -4,971 1,344 -110 -6,206 July................. 6,371 3,029 424 8,938 11,502 3,660 624 14,538 -5,600 4,690 -465 -155 5,310 Aug................. 7,301 4,995 459 11,766 12,730 3,472 -123 16,325 -4,559 5,147 1,723 76 3,348 Sept............... 12,404 3,108 279 15,176 12,468 3,127 1 ,394 14,201 975 -338 -1,003 54 610 Oct.................. 6,823 2,329 373 8,739 11,530 3,889 604 14,815 -6,076 5,058 - 432 264 5,225 Nov................. 7,529 4,067 541 11,032 11,730 3,361 -111 15,202 -4,170 4,733 292 102 4,339 Dec................. 10,616 3,003 861 12,734 10,084 4,262 912 13,434 -699 -14 -350 83 252 |k 1968—Jan................... 12,237 15,471 -3,233 3,044 -919 3,963 Feb.................. 12,134 14,429 -2,295 5,617 1,533 4,084 Mar................. 11,899 14,947 -3,049 -1,776 -428 -1,348 Apr................. 19,081 15,712 3,369 -l,U3 514 -1,627 May................ 11,711 16,241 -4,529 5.435 2,634 2,801 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 e u r o f d p i r g c l u i e t s t f T u r n u d s s t 3 a C c l c e o a u ri n n t g s i M ss s u a e o a c r f k n . 3 c e e t 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 e r i b o n e b l s c i t s c t T o r H u ea t e s s l i u d d r e y a T c u c r r e o e a r u ’ s n s ­ t Balance B F a . n R k . s a l T a c o n c a a d t x n s . a O s n t s h e e t e t s r Fiscal year—1964........ -8,226 1,446 948 1,880 -2,775 5,853 206 -1,080 11,036 939 9,180 917 1965........ -3,435 1,410 -804 1,372 -2,356 5,561 174 1,575 12,610 672 10,689 1,249 1966......... -2,251 -12 -956 4,077 -3,562 2,633 132 -203 12,407 766 10,050 1,591 1967......... -9,869 10,130 -657 420 -10,852 6,314 135 -4,648 7,759 1,311 4,272 2,176 k 1967......... -8,823 ’414 3,596 -6,840 6,795 -210 -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 > July-Dec..... -19 517 5384 1,752 -1,633 18,878 578 -713 7,046 1,123 4,329 1,594^ Month: 1967—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 ► 1968—Jan.................. -3.233 5877 1,434 919 1,610 -168 1,775 8,821 1,153 5,977 1,6914 Feb................. -2.295 s-564 100 -1,533 5,516 -313 1,539 10,359 1,197 7,601 1,561 Mar................ -3,049 ’1,473 287 428 -2,063 588 -3,512 6,847 581 4,727 1,539 Apr................. 369 5285 1,357 -514 -2,470 432 1,595 8,442 1,035 5,372 2,035 May................ -4,529 -422 120 -2,634 5,315 -215 -1,936 6,506 956 4,225 1,325 1 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ FEDERAL FINANCE A-39 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Total W I i n th d ­ ivid O ua th l er C r o a r t p e o­ Total a L b n i a q d c u c t o o o r ­ H w i a g y 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 a n t d . y t s ­ f R un e d ­ s Other held Fiscal year—1964... 115,530 39,259 15,331 24,301 13,950 5,630 3,646 21,936 17,405 4,037 2,416 1,284 1,702 7,148 2,499 1965... 119,699 36,84016,820 26,131 14,793 5,921 3,782 22,138 17,833 3,817 2,746 1,478 2,097 6,030 2,686 1966... 134,480 42,811 18,486 30,834 13,398 5,888 4,037 25,527 21,243 3,773 3,094 1,811 2,303 7,256 3,472 1967... 153,596 50,521 18,850 34,918 14,114 6,156 4,652 32,857 28,700 3,657 3,014 1,972 2,743 9,582 4,189 ► 1967... 149,591 50,521 18,850 34,918 14,114 6,156 4,652 33,616 28,752 3,658 3,014 1,972 1 ,805 9,581 3624 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 1 ,756 955 1,250 8,440 2,354 July-Dec... 68.385 27,192 4,150 11,345 7,146 3,344 2,253 14,629 13,056 1,333 1 ,350 1 ,034 1 ,363 1 ,263 1,439 ► July-Dec... 67,292 27,192 4,150 11,345 7,146 3,344 2,25.3 15,312 13,325 1,337 1,350 1,034 957 1,263 69 ^ Month: 1967—‘May...... 11,295 4,987 701 1,065 1,274 591 355 4,587 3,669 874 445 166 207 2,392 255 June.......... 21,501 4,204 3,071 9,328 1,293 606 348 2,698 2,614 50 196 176 233 '847 1,149 July........... 8,938 3,843 264 946 1,241 523 369 2,129 1,977 104 207 160 197 261 212 Aug. 11,766 5,164 211 642 1,125 487 463 3,981 3,319 620 308 178 189 257 225 Sept........... 15,176 4,236 2,864 4,032 1,088 539 355 2,270 2,144 92 199 163 189 195 330 Oct............ 8,739 4,171 298 913 1,222 600 345 1,489 1 ,406 40 234 179 223 180 190 Nov........... 11,032 5; 302 162 588 1 ,311 666 383 3,076 2,625 409 193 193 213 197 191 Dec........... 12,734 4,477 351 4,224 1,161 551 339 1 ,682 1,583 67 210 160 353 172 288 ► 1968—Jan............ 12,237 4,352 3,800 940 1,193 470 366 1,857 1,598 119 238 181 180 500 ~4« Feb....... 12,134 5,801 1,100 650 1,081 470 428 4,338 3,433 807 204 158 182 1 ,403 23 Mar........... 11,899 5,508 697 4,439 1,162 369 31 1 2,295 2,137 51 235 168 175 2,849 69 Apr............ l9j08l 4,045 7,687 4,339 1 ,211 n.a. 348 3.501 3,237 150 450 191 201 2,561 17 May.......... 11’711 5,566 539 763 1 ,321 n.a. 420 5,175 4,218 843 363 199 191 2,435 29 Cash payments to the public Period Total 5 t f i N e d o n n e a s ­ a ­ e l af I f n a t i i r , s s S e p r a e a r ­ c c e h A t c u g u r r e l­ 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 & l s l . . ­ l H w ab e e o l a f r l a , t r h e & , Ed ti u on ca­ e V ra e n t­ s In e t s e t r­ g G e o r e a v n l t . ­ Fiscal year—1964........ 120,332 54,514 3,837 4,171 5,416 2,774 6,545 1,674 27,191 1,299 6,107 8,011 2,221 1965........ 122,395 50,790 4,794 5,093 5,142 2,921 7,421 908 28,191 1,497 6,080 8,605 2,341 1966........ 137,817 58,464 4,463 5,933 4,114 3,229 6,784 3,425 33,249 2,780 5,556 9,215 2,404 1967........ 155,142 71,843 4,413 5,426 4,159 3,522 7,102 -1,723 39,002 3,286 6,978 10,371 2,641 ► 1967........ 158,414 70,092 4,650 5,423 4,377 2,132 7,446 2,285 40,084 4,047 6,898 10,280 2,454^ 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 86 809 '38,748 ...........4 Month: 1967—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 b 196R Tan 15 471 «7 164 ...........4 Feb 14*429 *6*412 14*947 *6 363 15’712 '7’09l 16:241 '7,191 ► Data represent results of preliminary adjustment to new budget concepts 3 Includes net transactions of Govt.-sponsored enterprises. and may be revised later. See Feb. 1968 Treasury Bulletin, p. 1. 4 Primarily (1) intragovt, transactions, (2) noncash debt, (3) clearing accounts. 1 Primarily interest payments by Treasury to trust accounts and accumu­ 5 Includes technical adjustments not allocated by functions. lations to U.S. employee trust funds. 2 Includes small adjustments not shown separately. Note.—Based on Treasury Dept, and Bureau of the Budget data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 End of period d T g e r o b o t s t a s l t d d T g e i r o r b o e t t s a c s l t 2 Total Total Bills Ma C r c e k a r e t t e t i a s fi b ­ le Notes Bonds 4 b C v o ib e o n l r d n e t­ s ­ T N o o ta n l m s ark b © S i o n t a a n g v b d s l ­ s e i S s p su e e c s ia l 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 1960—Dec.................................... 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec.................................... 296.5 296.2 249.2 196.0 43,4 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—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 61.4 95,2 2.6 55.0 51.7 55.9 Feb.................................... 352.1 351.6 291.1 233.3 72.9 66.7 93.6 2.6 55.3 51.7 57.2 Mar.................................... 350,0 349.5 289,4 231,7 71,3 66,7 93.6 2.5 55.2 51.8 56.7 Apr.................................... 347.5 347.0 286.7 228.7 68.6 66.5 93.6 2.5 55.4 51.8 57.0 May................................... 352.9 352.3 289.7 231,8 69,6 71.1 91.1 2.5 55.5 51.9 59.2 June................................... 348.1 347.6 284.9 226.6 64.4 ........7..1....1. 91.1 2.5 55.8 51 .9 59.5 1 Includes non-interest-bearing debt (of which $654 million on June 30, 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 $19,066 million on May 31, 1968. 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 End of Total U.S. Individuals period g d r e o b s t s ag G t e a r o n u n 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 M s b av a u n i t n u k g a s s l p I c a n a o n s n 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 d a t t s e l . Savings Other n F a i o t a n i r n t o e e d i n r g ­ a n l 1 O i m t n o t v i h r s e s c e s . r ­ 2 funds bonds securities 1941—Dec................ 64.3 9.5 2.3 52.5 21,4 3.7 8,2 4.0 .7 5.4 8.2 .4 .5 1945—Dec................ 278.7 27.0 24.3 227.4 90,8 10.7 24,0 22.2 6,5 42.9 21.2 2.4 6 6 1947—Dec................ 257.0 34,4 22.6 200.1 68,7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 1960—Dec................ 290.4 55.1 27.4 207.9 62.1 6.3 11.9 18.7 18.7 45.6 20.5 13.0 11.2 1961—Dec................ 296.5 54.5 28.9 213,1 67,2 6.1 11.4 18.5 19.0 46.4 19.5 13,4 11.6 1962—Dec................ 304.0 55.6 30.8 217,6 67.2 6.1 11.5 18.6 20.1 46.9 19.2 15.3 12,7 1963—Dec................ 310.1 58.0 33.6 218.5 64,3 5.8 11.3 18.7 21.1 48.1 20.1 15.9 13.3 1964—Dec................ 318.7 60.6 37.0 221,1 64,0 5.7 11.1 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—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 June.............. 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, i 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 r14.8 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 25.1 51.1 22.7 15.8 16,2 346.8 74,7 49.1 223.0 63.1 4.1 8.6 13.8 25.4 51.0 23.3 15,4 18,2 Feb................ 352.1 76,4 49.0 ^226.7 63.9 4,2 8.5 15.3 r26.3 51,1 23.8 U5.2 18,4 Mar.............. 350.0 75.9 49.7 224.5 62.2 4.2 8.6 14.6 26.7 51.1 24.0 14.6 18.4 Apr............... 347,5 75,8 50.5 221.3 60.0 4.1 8.4 13.7 26.8 51.1 r24,l r14.7 18.5 May........ 352.9 78.3 50.6 224,0 60.9 4.1 8.5 15.8 26.7 51,2 23.9 14.4 18.6 i Includes investments of foreign balances and international accounts Note.—Reported data for F.R. Banks and U.S. Govt, agencies and in the United States. trust funds; Treasury estimates for other groups. 2 Includes savings and loan assns., dealers and brokers, nonprofit institutions, and corporate pension funds. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ U.S. GOVERNMENT SECURITIES A-41 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r r s Total Bills Other All holders: 1965—Dec, 31 ...2..1..4..,.6..0..4..........9..3..,.3..9..6...........6..0,177 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—Dec. 31........................................................ 226,476 104,363 69,870 34,493 78,159 18,859 8,417 16,679 1968—Apr. 30........................................................ 228,718 111,783 68,589 43,194 67,922 24,006 8,411 16,596 May 31.....2.3..1..,.7..6..1..........1..0..9..,.0..1..2...........6..9..,.5..8..7 39,425 67,017 30,752 8,409 16,571 U.S Govt, agencies and trust funds: 1965—Dec. 31...................................... 13,406 1,356 968 388 3,161 1 3,350 2,073 3,466 1966—Dec. 31................................................ 14,591 2,786 1,573 1,213 3,721 I 2,512 2,093 3,479 1967—Dec. 31................................................ 16,601 3,580 2,436 1,144 5,202 2,194 2,115 3,513 1968—Apr. 30................................................. 16,638 3,350 2,109 I ,241 4,992 2,669 2,115 3,513 May 31.......1..6..,.9..6..8.............3..,.0..5..1.............2,011 1 ,040 4,858 3,425 2,117 3,517 Federal Reserve Banks: 1965—Dec. 31......4...0..,.7..6..8...........2..4..,.8..4..2.... 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—Dec. 31................................................ 49,112 31,484 16,041 15,443 16,215 858 178 377 1968—Apr. 30................................................ 50,507 40,154 16,863 23,291 8,003 1,773 188 389 May 31 ......5..0..,.6..2..5..........3..6..,.6..7..0............1..6,976 19,694 7,957 5,421 188 390 Hold by public: 1965—Dec. 31.....1..6..0..,.4..3..0...........6..7..,.1..9..8.... 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—Dec. 31................................................ 160,763 69,299 51,393 17,906 56,742 15,807 6,124 12,789 1968—Apr. 30................................................ 161,573 68,279 49,617 18,662 54,927 19,564 6,108 12,694 May 31.............1..6..4.,.1..6..8...........6..9..,.2.91 50,600 18,691 54,202 21,906 6,104 12,664 Commercial banks: 1965—Dec. 31.......5..0..,.3..2..5...........1..8..,.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—Dec. 31........................................ 52,194 18,451 10,415 8,036 26,370 6,386 • 485 502 1968—Apr. 30........................................ 48,882 13,608 5,942 7,666 25,836 8,480 489 469 May 31.......4..9..,.8..4..0...........1..4..,.3..1..7.... 5,956 8,361 24,902 9,651 512 459 Mutual savings banks: 1965—Dec. 31........5..,.2..4..1..................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—Dec. 31........................................ 4,033 716 440 276 1,476 707 267 867 1968—Apr. 30........................................ 3,920 703 434 269 1,333 800 258 827 May 31.........3..,.9..7..7.................8..0.9.... 501 308 1 ,269 827 253 819 Insurance companies: 1965—Dec. 31........8...,.8..2..4................9.93 548 445 1,938 2,094 1,096 2,703 1966—Dec. 31........................................ 8,158 847 508 339 1,978 1,581 1,074 2,678 1967—Dec. 31......................................... 7,360 815 440 375 2,056 914 1,175 2,400 1968—Apr. 30............................................... 7,124 732 372 360 I ,896 980 1,138 2,378 May 31.........7...,.2...1..4....................7..9..7...... 486 311 1 ,878 1 ,030 1,134 2,375 Nonfinancial corporations: 1965—Dec. 31........8..,.0..1...4.............5..,.9.11 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—Dec. 31......................................... 4,936 3,966 2,897 1,069 898 61 3 9 1968—Apr. 30........................................ 5,669 4,263 2,729 1 ,534 1 ,257 139 2 8 May 31.........7..,.0..7..3.............5..,.4..2..2.... 3,682 1 ,740 1 ,478 161 3 8 Savings and loan associations: 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—Dec. 31........................................ 4,575 1,255 718 537 1,767 811 281 461 1968—Apr. 30........................................ 4,813 1 ,224 765 459 1,770 1,053 307 458 • May 31........4..,.9...4..6...........1. ..,.3.2..1...... 852 469 1 ,698 1,158 312 458 State and local governments: 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—Dec. 31....................................... 14,689 5,975 4,855 1,120 2,224 937 1,557 3,995 1968—Apr. 30........................................ 14,906 6,339 5,025 1 ,314 2,228 990 1,506 3,843 May 31.......1..4..,.8..5..5.............6..,.3..3..3..... 5,174 1,159 2,172 1 ,029 1 ,505 3,816 All others: 1965—Dec. 31......6..8..,.6..7..5...........3..5..,.3.56 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—Dec. 31......................................... 72,976 38,121 31,628 6,493 21,951 5,991 2,356 4,555 1968—Apr. 30........................................ 76,259 41,410 34,350 7,060 20,607 7,122 2,408 4,711 May 31......7..6..,..2..6..3...........4..0..,.2..9..2..... 33,949 6,343 20,805 8,050 2,385 4,729 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,850 commercial banks, 501 mutual savings Ownership. banks, and 760 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 504 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

DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total Dealers and brokers securities Within 1-5 5-10 Over Com­ All 1 year years years 10 years mercial other U.S. Govt, Other banks securities 1967—'May........................... 2.075 1,636 332 77 30 784 63 720 507 188 June............................ 1,802 1^502 226 52 23 659 56 621 466 199 July............................. 2^084 1^856 161 45 21 740 58 741 544 219 Aug............................. 11884 1,578 243 33 30 662 60 662 500 159 Sept.............................. 1,937 1,705 177 30 24 715 52 711 459 200 Oct............................... 2,168 1,941 150 43 33 795 66 841 465 202 Nov............................. 21343 1 ^935 273 96 40 848 76 862 558 243 Dec.............................. 2,798 2,352 291 94 63 1 079 90 1 028 601 213 1968—Jan.. ........................... 2,919 2,545 263 64 48 1,160 9! 1 051 618 304 Feb............................... 2,’679 2,’207 295 150 27 1 019 82 *969 609 223 Mar............. 2,467 2,132 236 74 25 919 77 863 608 289 Apr............................. 2^246 1 ^972 185 60 28 759 75 827 586 227 2.’247 1 .’756 295 174 22 719 75 831 622 262 Week ending— 1968—May 1....................... 1 ,906 1 .704 141 29 32 605 59 747 497 2X1 ' 8....................... '2,599 •I,975 287 G15 23 873 92 967 r667 153 15....................... 1 '981 1 '474 366 120 21 589 60 816 516 2 36 22....................... ' 1'938 1 ,471 271 184 16 555 73 692 *617 407 29....................... ’2.454 2,031 ’290 '110 25 ’862 ’’77 ^821 ’693 227 June 5....................... 2,524 2 074 300 1 20 31 916 70 938 600 366 12....................... 1 ,895 1 ^589 201 84 22 681 58 659 497 223 19...................... 2’367 1 ’940 269 127 30 941 84 792 550 340 26....................... 2,875 2,428 298 104 46 21 365 Note.—The transactions data combine market purchases and sales of ties under repurchase agreement, reverse repurchase (resale), or similar U.S. Govt, securities dealers reporting to the F.R. Bank of N.Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of, and exchanges for, new U.S. Govt, securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi- DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Period mat A ur ll i ties W 1 y it e h a in r y 1 e - a 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 re ­ C t o io rp n o s r i a­ o A th l e l r City 1967—May........ 3,375 2,503 744 129 371 June..... 2,869 2’389 406 74 314 1967—May......... 3,612 935 1,156 764 757 July......... 2,239 21115 106 18 239 June.......... 3 J 262 1,121 '984 665 492 2,903 2'564 312 26 265 July........... 2'147 649 622 598 276 Sept......... 2,545 2,305 202 38 242 Aug........... 2'717 835 734 868 280 Oct....... 2,880 2,837 22 20 379 Sept........... 2,669 1 ,010 873 582 204 Nov......... 3,109 2’.793 258 58 312 Oct........ 2,660 844 688 744 383 Dec.......... 2,410 2,375 35 1 363 Nov........... 2^863 650 640 1,176 397 Dec........... 2,549 556 482 1 ’144 367 1968—Jan........... 3,404 3,310 114 -20 393 Feb........ J’762 3 '500 108 153 369 3,209 1,003 816 944 446 Mar,. 2,438 2,211 124 103 361 Feb............ 3,799 1 ,072 J ,008 J ,07) 648 Apr.......... r2 981 ‘2’601 236 142 403 Mar.......... 2,651 678 643 829 '501 M ay........ 3,204 2,585 306 312 382 Apr............ 3'073 794 832 937 510 May.......... 3,162 699 923 844 696 Week ending— Week ending— 1968—Apr. 3.. 3,010 2,746 162 102 357 I0.. 3,236 2,334 240 161 364 1968—Apr. 3... 2,800 843 681 666 610 I7. . 3.030 2,610 262 159 421 10. . . 3,376 1 ,062 844 873 597 24.. 2.487 2,124 228 135 414 17. .. 3,436 1 .000 891 944 600 24. . . 2,622 387 727 1.168 J 40 May 1 .. 3,109 2,716 253 139 447 8.. 3,063 2,661 262 141 428 May I.. 2,878 567 958 841 513 15.. 3,629 2,601 435 592 425 8. . . 3,238 623 1 .024 750 841 22.. 2,901 2,282 315 303 302 15. . . 3,617 852 988 773 1 .004 29.. 3,206 2,720 233 253 343 22. . . 3,151 762 930 917 542 29. . . 2,638 533 783 901 422 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

JULY 1968 □ GOVERNMENT SECURITIES A-43 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JUNE 30, 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—Coot. Treasury notes—Cont. Treasury bonds—Cont. June 30,1968............. 1,501 Dec. 5. 1968 ........... 1 ,099 Apr. 1,1971........• U4 35 IS 1970 4 4,381 July 5, 1968................. 2,601 Dec. 12, 1968................ 1,100 May 15, 1971........• 5% 4,265 Aug. 15, 1970.........4 4,129 July 11', 1968................. 2,602 Dec. 19' 1968................ 1,101 Oct. 1, 1971........■ 114 72 Aug. 15, 1971....... .4 2,806 July 18’ 1968................. 2,603 Dec. 26’ 1968................ 1,105 Nov. 15,’ 1971........ 5K 1,734 Nov. 15, 1971.........3% 2,760 July 25' 1968................. 2,603 Dec. 31 , 1968................ 1,499 Feb. 15, 1972.........4% 2,006 Feb. 15, 1972.........4 2,344 July 311 1968................. 1,501 Jan. 311 1969........... 1,500 Apr. 1, 1972.........U/2 34 Aug. 15, 1972.........4 2,579 Aug. L 1968................. 2,600 Feb. 281 1969................ 1,502 May 15, 1972....... 4% 5,310 Aug. 15, 1973.........4 31894 Aug. 81 1968................. 2,601 Mar. 31 1969................ 1 ,000 Oct. 1, 1972........ 114 33 Nov. 15, 1973.........4*/r 4,352 Aug. 15’ 1968................. 2,602 Apr, 301969............... 1 ,001 Apr. 11 1973........ 114 13 Feb. 15, 1974....... .414 3,129 Aug. 22; 1968................. 2,601 May 31 ’ 1969............... 1 '002 Nov. 15, 1974........ 5% 1,652 May 15, 1974....... .4*4 31588 Aug. 29; 1968......... . 2,600 Feb. 15, 1975....... 5?4 5,148 Nov. 15, 1974.........3% 2,241 Aug. 31, 1968................. 1,501 May 15, 1975........ 6 6,750 May 15, 1975-85..• 4'4 1,216 Sept. 5, 1968................. 2,600 June 15, 1978-83...314 1,569 Sept. 12, 1968................. 2,601 Feb. 15, 1980.........4 2,601 Sept- 19, 1968.................. 2,601 Treasury notes Treasury bonds Nov. 15, 1980....... ■ 3'4 1,908 Sept. 26, 1968................. 2,601 Aug. 15, 1968.......4^ 5,936 Dec. 15, 1963-68.. 2'4 1 ,788 May 15, 1985....... 3'4 1,114 Sept. 30, 1968................. 1,500 Oct. 1,1968.........DA 115 June 15, 1964-69.. 2'4 2,542 Aug. 15, 1987-92.. 4'/. 3,816 Oct. 3, 1968................. 1,000 Nov. 15, 1968.........514 8,984 Dec. 15, 1964-69.. 214 2,489 Feb. 15, 1988-93.. 4 249 Oct. 10, 1968................. 1 ,001 Feb. 15,1969..........5% 10,738 Mar. 15, 1965-70.. 214 2,285 May 15, 1989-94.. 414 1,559 Oct. 17,1698................. 1,103 Apr. 1,1969.........114 61 Mar. 15, 1966-71.. 2'A 1 ,224 Feb. 15, 1990....... 3'4 4,880 Oct. 24, 1968................. 1,101 May 15, 1969.........SyB 4,277 June 15, 1967-72.. 2'4 1 ,251 Feb. 15, 1995.........3 1,707 Oct. 31, 1968................. 2,602 Aug. 15, 1969..........6 3,366 Sept. 15, 1967-72.. 2'4 1 ,952 Nov. 15, 1998....... • 3'/2 4,341 Nov. 7, 1968................. 1,102 Oct. 1,1969...........114 159 Dec. 15, 1967-72..■ 2'4 2,613 Nov. 14, 1968................. 1,101 Apr. 1, 1970...........114 88 Aug. 15, 1968........■3'/4 2,640 Nov. 21, 1968................. 1,100 Oct. 1, 1970..........114 113 Nov. 15, 1968.........3% 1,158 Convertible bonds Nov. 29, 1968................. 1,100 Nov. 15, 1970.........5 7,675 Feb. 15, 1969.........4 3,728 Investment Series B Nov. 30, 1968................. 1,501 Feb. 15,1971........5^ 2,509 Oct. 1, 1969.........4 6,246 Apr. 1,1975-80...25/4 2,516 t Tax anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds amount Period Total G o e b a n l l e i­ r­ R n e u v e e­ HAA' G l U o o a . v S 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 e d r e e l d iv 3 ­ Total c E at d i u on ­ 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 d s e ’ r ­ O p p o t u s h e r e s ­ r gations auth. 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................. 101847 6,417 31585 637 208 11628 3,812 51407 101069 101201 31392 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 .......... 11^405 61804 31955 325 312 2,590 4,110 4,695 n.a.11,303 3,738 1,476 1 ,880 533 3,667 1 %7 .............. 14 766 8,946 5,013 477 334 2,842 4,810 7,115 n.a. 141643 4’,473 1 ’,254 2,404 645 5',867 1967 -May. 1 254 766 458 30 315 299 641 n.a. 1 ,229 487 116 102 11 513 1 * 497 860 492 117 29 138 682 677 n.a. 1 1497 597 26 228 148 498 July*' *950 665 246 39 186 260 504 n.a. 943 314 36 193 7 393 860 588 254 18 195 234 430 n.a. 858 212 142 211 52 242 1 340 566 648 105 21 246 588 507 n.a. 1 ,330 333 184 250 1 10 453 975 686 256 32 207 257 510 n.a. '974 269 130 139 18 417 1 400 766 592 43 335 548 517 n.a. 1 ,400 225 43 320 9 803 Dec 1 ’ 182 484 539 138 22 153 507 521 n.a. 1 1182 277 43 129 152 580 1968 Jan I 175 839 307 28 450 300 425 n.a. 1,134 425 206 174 * 328 Feb 1 175 690 471 14 152 393 630 n.a. 1 J74 481 110 28 555 1 *365 582 624 144 15 110 500 754 n.a. 1 1356 358 9 129 190 669 1 *278 774 487 17 80 568 767 n.a. 1 ,’273 282 127 316 H2 436 May... • 1 J05 668 235 142 59 219 301 584 n.a. 1 .104 393 51 200 156 ........3..0..5 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 5 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. Components may not add to totals due to rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-^^ OC.CUUI I T IOOUE.O TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Proposed use of net proceeds, all corporate issues 6 Noncorporate Corporate New capital Re­ Period Total G U o . v S t . .2 G a U c g o y e .S v n 3 t . ­ , l S o U a t c n a . a S d t l e . 4 Other 5 Total Total o B P f l f o i u e c n l r b d y e ­ s d p v l P a a t r c e i e l ­ y d fe P r r r e e S ­ d toc C m k o o m n ­ Total Total m N on ew ey 7 O p p o t u h s r e e ­ s r m s r t e i i o t r e c i e f e n u ­ s t ­ 1960................... 27,541 7,906 1,672 7,230 579 10,154 8,08t 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 1967................... 68,514 19,431 8,180 14,288 1 ,817 24,798 21,954 14,990 6,964 885 1 ,959 24,409 24,097 22,233 1,867 312 1967—Apr......... 4,229 393 650 1,129 41 2,015 1,778 1,368 410 144 94 1,985 1,973 1,891 82 12 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........ 4,375 415 407 925 39 2,589 2,375 1,889 486 85 130 2,546 2,457 2,181 275 89 Aug........ 10,625 6,458 250 840 596 2,481 2,231 1,813 418 105 144 2,440 2,406 2,184 222 34 Sept........ 4,218 362 599 1,273 220 1,763 1,549 902 647 41 173 1,732 1,723 1,581 142 10 4,609 422 708 991 78 2,409 1 ,940 1,375 566 231 238 2,367 2,289 2,120 168 79 Nov........ 8,732 5,054 710 1,320 147 1,500 1,196 645 551 81 222 1 ,470 1,467 1,305 163 3 4,483 371 612 1,093 22 2,385 2,107 1 ,087 1 ,020 42 235 2,343 2.336 2,113 223 8 1968 Jan.......... 4.556 481 999 1,162 144 1 ,771 1,449 903 546 46 276 1 ,732 ,705 1 ,588 117 27 Feb......... 8,072 4,719 550 1,134 61 1 ,608 1 ,382 796 585 58 169 1 ,585 ,568 1 ,447 121 16 Mar......5..,069 418 1 ,370 1 ,363 118 I ,799 1 ,359 766 593 145 295 1 ,765 ,740 1 ,592 149 24 Apr......... 3.448 405 225 1 ,276 88 1 ,453 1 ,184 719 465 49 221 1 ,422 1 ,413 1 ,222 191 9 Proposed uses of not proceeds, major groups of corporate issuers Manufacturing C m om is m ce e ll r a c n ia e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ rities rities rities rities rities rities 1960............................................... 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961............................................... 3,691 287 1,109 36 651 35 2,883 106 1,435 382 2,248 22 1962.............................................. 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 1963............................................... 3,272 199 756 53 861 87 1,939 703 733 359 2,962 125 1964............................................... 2,772 243 1,024 82 941 32 2,445 280 2,133 36 3,723 80 1965.............................................. 5,015 338 1,302 79 967 36 2,546 357 847 92 4,128 93 1966.............................................. 6,855 125 1,356 44 1,939 9 3,570 46 1,978 4 1,902 14 1967............................................... 10,774 111 2,211 47 2,016 22 4,741 127 1 ,955 I 2,399 5 1967 Apr.................................... 1,128 7 102 4 100 394 1 107 141 May......................... 588 1 94 * 199 I 403 17 91 ........ 100 * 1,298 16 218 3 128 471 350 146 JUly.................................... 925 22 388 23 379 20 446 24 39 277 1,229 10 95 3 99 509 19 356 119 2 637 5 285 3 150 1 265 200 184 Oct,............................. 906 6 126 7 176 573 65 119 388 Nov......................... 512 1 207 2 88 404 82 174 * 1,109 6 409 1 198 278 * 68 * 273 537 15 208 11 91 417 185 267 Feb..................................... 556 5 142 1 118 546 8 147 61 2 761 175 ♦ 192 431 17 78 6 102 364 9 326 202 178 189 154 i Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price, 7 For plant and equipment and working capital. 2 Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. 4 See Note to table at bottom of opposite page. Note,—Securities and Exchange Commission estimates of new issues 5 Foreign governments, International Bank for Reconstruction and maturing in more than 1 year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ SECURITY ISSUES A-45 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire­ Net New Retire­ Net issues ments change issues ments change I c n o ve s s .1 t. Other In c v o e s s .1 t. Other I c n o ve s. s 1 t. Other 1963....................... 15,641 8,711 6,930 10,556 4,979 5,577 3,138 1,948 1 ,536 2,197 1,602 -249 1964....................... 18,826 8,290 10,536 10,715 4,077 6,637 4,363 3,748 1 ,895 2,317 2^68 1,431 1965....................... 21,535 10,025 11 ;51I 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 1967....................... 33,303 10,496 22.537 21 ,299 5,340 15,960 6.987 4.664 2.761 2,397 4,226 2.267 1967—1.................. 7,258 2,344 4,914 4,724 1,202 3,522 1,748 786 592 550 1,156 235 II............... '7,493 2,599 ‘4,894 4,978 1 ,318 3,660 1,381 1,041 701 581 680 461 Ill............... '8,868 2,690 '6,178 6,248 U394 4,854 1,412 1,232 721 576 691 656 IV............... '9,414 2,863 '6.551 5,349 1,426 3,924 2,446 1 ,605 747 690 1,699 915 1968—1.................. 7,679 3,019 4,660 3,997 1,286 2,71 1 2,451 1 ,230 821 91 2 1,630 319 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B n on o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1963....................... 1,804 -664 339 -352 316 -19 876 245 438 447 1,806 1,696 1964....................... 1,303 -516 507 -483 317 -30 1,408 476 458 1,699 2,644 2,753 1965....................... 2,606 -570 614 -70 185 -1 1,342 96 644 518 2,707 3,440 1966........................ 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 4,414 1967........................ 7,237 832 1,104 282 1,158 165 3,444 652 1 .716 467 1,302 4,178 1967—I.................. 1,489 52 130 -6 372 19 642 90 511 97 379 1,139 ri 1,858 107 153 52 198 47 1,089 117 320 158 41 '754 iri............... 2,253 403 422 29 374 45 867 168 594 92 345 ’587 iv.......... 1,637 270 399 207 214 54 846 277 291 120 537 '698 1968—1................. 7,679 3,019 4,660 3,997 1 ,286 2,711 2,451 1 ,230 821 912 1,630 319 t Open-end and closed-end companies. exclude foreign and include offerings of open-end investment cos., sales of 2 Extractive and commercial and misc. companies. securities held by affiliated cos. or RFC, special offerings to employees, 3 Railroad and other transportation companies, and also new stock issues and cash proceeds connected with conversions 4 Includes investment companies. of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for Note.—Securities and Exchange Commission estimates of cash trans­ that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a ti s o 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 s a it s i h o n3 Other 1956.............. 1,347 433 914 9,046 492 8,554 1967—May.. 357 258 99 39,847 2,608 37,239 1957............. 1,391 406 984 8,714 523 8,191 June.. 375 225 150 40,795 2,503 38,292 1958.............. 1,620 5U 1,109 13,242 634 12,608 July... 425 222 203 43,064 2,515 40,549 Aug... 347 249 98 42,663 2,370 40,293 1959.............. 2,280 786 1,494 15,818 860 14,958 Sept... 352 246 106 43,585 2,244 41,341 1960.............. 2,097 842 1,255 17,026 973 16,053 Oct... 409 270 139 42,652 2,218 40,434 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Nov. . 468 231 237 43,262 2,653 40,609 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Dec... 501 242 259 44,701 2,566 42,135 1963.............. 2,460 1,504 952 25,214 1,341 23,873 1968—Jan.... 556 316 240 42,466 2,679 39,787 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Feb.., 451 260 191 41,533 3,409 38,124 1965.............. 4,359 1,962 2,395 35,220 1,803 33,417 Mar... 557 243 314 42,412 3,919 38,493 1966.............. 4,671 2,'005 2,665 34,829 2,971 31,858 Apr... 618 309 309 46,179 3,923 42,256 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 May. . 502 366 136 48,054 3,495 44,559 1 Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, aH 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. , t f # Note.—Investment Company Institute data based on reports of mem­ 2 Market value at end of period less current liabilities. bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1966 1967 1968 Industry 1963 1964 1965 1966 1967 II III IV I II HI IV I Manufacturing Total (177 corps.): Sales....................................... 147,380 158,253 177,237 195,738201,399 49,850 46,202 51,991 48,585 51,679 48,317 52,818 57,075 Profits before taxes....................... 17,337 18,734 22,046 23,487 20,898 6,460 4,881 6,126 5,153 5,608 4,232 5,867 6,922 Profits after taxes.......................... 9,138 10,462 12,461 13,307 12,664 3,643 2,845 3.466 2,918 3,190 2,381 3,268 3,894 Dividends...................................... 5,444 5,933 6,527 6,920 6,989 1,754 1,631 1,965 1,670 1,701 1,721 1,897 Nondurable goods industries (78 corps.) ;t Sales.............................................. 55,372 59,770 64,897 73,643 77,969 18,496 18,297 19,129 18,743 19,535 19,695 19,996 21,258 Profits before taxes....................... 6,333 6,881 7,846 9,181 9,039 2,444 2,305 2,232 2,153 2,250 2,209 2,427 2,702 Profits after taxes......................... 3,646 4,121 4,786 5,473 5,379 1,427 1,389 1 ,352 1,319 1,343 1,313 1 ,431 1 ,609 Dividends...................................... 2,265 2,408 2,527 2,729 3,027 682 673 723 720 756 770 781 Durable goods industries(99 corps.):2 Sales....9..2...,.0..0..8.....9..8..,..4..8..2....1.1..2..,.341 122,094 123,429 31,354 27,905 32,861 29,842 32,144 28,622 32,821 35,817 Profits before taxes.............. 11,004 11,853 14,200 14,307 11,822 4,020 2,577 3,895 3,000 3,358 2,024 3,440 4,220 Profits after taxes. • ...................... 5,492 6,341 7,675 7,834 6,352 2,216 1,456 2,115 1,599 1,847 1 ,068 1 ,838 2,285 Dividends.......................... 3,179 3,525 4,000 4,191 3,964 1,072 958 1,242 950 945 952 1,117 Selected industries: Foods and kindred products (25 corps.): Sales............................................... 14,301 15,284 16,427 19,038 20,134 4,673 4,759 5,011 4,963 5,060 5,131 4,980 5,062 Profits before taxes................ 1,546 1,579 1,710 1,916 1,967 488 504 485 447 482 526 512 497 Profits after taxes......................... 747 802 896 1 ,008 1,041 257 262 259 236 253 284 268 262 Dividends...................................... 448 481 509 564 583 142 139 146 148 144 146 145 Chemical and allied products (20 corps.): Sales............................................... 14,623 16,469 18,158 20,007 20,561 5,216 4,824 5,072 4,998 5,163 5,116 5,284 6,686 Profits before taxes...................... 2,286 2,597 2,891 3,073 2,731 874 789 650 694 700 636 70! 916 Profits after taxes......................... 1,182 1,400 1,630 1,737 1,579 480 443 386 396 404 363 416 501 Dividends...................................... 904 924 926 948 960 224 234 269 238 235 235 252 Petroleum refining (16 corps.): Sales.......................................... 16,043 16,589 17,828 20,887 23,258 5,114 5,298 5,530 5,390 5,808 5,985 6,075 5,890 Profits before taxes.............. 1,487 1,560 1,962 2,681 3,004 668 631 726 684 741 744 835 941 Profits after taxes......................... 1,204 1,309 1,541 1 ,898 2,038 467 479 495 505 504 489 540 655 Dividends..................... 608 672 737 817 1,079 204 204 209 232 280 286 281 Primary metals and products (34 corps.): Sales............................................... 22,116 24,195 26,548 28,558 26,532 7,457 7,309 7,225 6,801 7,040 6,525 6,166 7,072 Profits before taxes...................... 2,178 2,556 2,931 3,277 2,487 928 857 810 693 670 477 647 636 Profits after taxes......................... 1,183 1,475 1,689 1 ,903 1 ,506 537 490 475 395 411 290 410 368 Dividends...................................... 734 763 818 924 892 218 230 260 222 214 228 228 Machinery (24 corps.): Sales........................................... 21,144 22,558 25,364 29,512 32,721 6,889 7,538 8,100 7,704 7,933 8,090 8,994 11,703 Profits before taxes....................... 2,394 2,704 3,107 3,612 3,482 915 851 952 868 807 837 970 1 ,639 Profits after taxes.......................... 1,177 1,372 1,626 1,875 1,789 480 444 495 421 417 438 513 873 Dividends.. ................................... 577 673 774 912 921 225 226 244 232 233 227 229 Automobiles and equipment (14 corps.): Sales............................................. 32,927 35,338 42,712 43,641 42,306 11,728 8,046 12,149 10,413 11,875 8,354 11,664 12,154 Profits before taxes....................... 5,004 4,989 6,253 5,274 3,906 1,615 313 1 ,567 1,050 1,436 216 1 ,204 1 ,485 Profits after taxes.............. 2,387 2,626 3,294 2,877 1,999 893 224 826 583 782 62 572 795 Dividends..................... 1,447 1,629 1,890 1,775 J ,567 503 361 551 363 365 362 477 Public utility Railroad: Operating revenue................ 9,560 9,778 10,208 10,654 10,366 2,728 2,690 2,718 2,536 2,628 2,529 2,673 2,610 Profits before taxes........................... 816 829 980 1,088 391 327 280 268 145 163 '•83 1 n.a. Profits after taxes......................... 651 694 816 902 325 259 227 244 121 143 78 17 n.a. Dividends...................................... 383 438 468 496 539 109 113 161 124 156 103 155 n.a. Electric power: Operating revenue......... 14,294 15,156 15,816 16,908 17,894 4,026 4,236 4,246 4,697 4,280 4,406 4,511 Profits before taxes...................... 3,735 3,926 4,213 4,395 4,564 987 1,153 1,041 1,279 1,026 1,161 I ,099 Profits after taxes........................ 2,187 2,375 2,586 2,764 2,911 632 702 673 799 666 717 729 Dividends...................................... 1,567 1,682 1,838 1,932 2,071 486 475 505 518 510 509 534 Telephone: Operating revenue....................... 9,796 10,550 11,320 12,420 13,311 3,091 3,135 3,202 3,229 3,312 3,341 3,429 3,486 Profits before taxes...................... 2,815 3,069 3,185 3,537 3,694 907 911 868 869 923 953 949 971 Profits after taxes....................... 1,417 1,590 1,718 1,903 1,997 488 487 468 472 497 515 513 525 Dividends............................................ 988 1,065 1,153 1,248 1,363 309 317 320 334 337 341 351 351 i Includes 17 corporations in groups not shown separately, , Telephone: Data obtained from Federal Communications Commis­ 2 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.'—Manufacturing corporations: Data are obtained primarily from Lines and General Depts, of American Telephone and Telegraph Co.), published reports of companies. , . and for 2 affiliated telephone companies. Dividends are for the 20 operat­ Railroads: Interstate Commerce Commission data for Class I line­ ing subsidiaries and the 2 affiliates. haul railroads. , AU 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

JULY 1968 ii BUSINESS FINANCE A-47 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i e t s s d ­ co c a n a t ll i s p o o u i w n t m a ­ l p ­ Quarter P b t r e a o f x o f e i r t s e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s 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 e t s s d ­ co c a t n a l i l o s p o u n i w t m a ­ l p ­ ances 1 ances 1 1961.............. 50.3 23,1 27.2 13,8 13,5 26.2 1966—11.... 83.6 34.5 49.2 21.6 27.6 38.7 iii... 84.0 34.6 49.4 21.6 27.8 39.2 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—1 I , I . .. . . . 7 7 9 8 . . 0 9 3 3 2 2 . . 5 5 4 4 6 6 . , 5 5 2 23 2 . . 1 2 2 2 4 3 . . 2 4 4 4 0 0 . . 3 9 1 1 9 96 6 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 6 3 . . 6 8 3 3 1 4. . 5 4 4 4 5 9 . .3 2 2 1 1 9 . . 5 8 2 27 5 . . 8 4 3 3 6 9 . . 5 0 H IV I. . . . . . 8 85 0 . . 1 0 3 3 2 5 . . 9 0 4 5 7 0 . . 1 1 2 2 3 2 . . 4 4 2 2 7 3. . 6 6 4 4 2 1 . . 5 8 1967.............. 80,7 33.2 47.5 22.8 24.7 41.4 1968—1. ... 88.7 36.2 52.5 23.2 29.2 43.1 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 Govt, Inven­ Other Total Federal Other securi­ tories income 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—11....................... 187.1 421.8 48.1 15.0 4.0 196.7 133.4 24.6 234.7 3.5 164.0 16.5 50.8 HI..................... 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 If....................... 192.8 441.1 47.4 11.3 4.6 204.9 147.9 24.9 248.2 5.4 174.6 12.5 55.7 HI..................... 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 IV..................... 200.1 460.1 52.0 12. 1 5.1 211.8 152.5 26.6 260.0 5.8 181.0 14.9 58.2 1968—I........................ 204.9 467.5 5O.I 13.9 4.8 213.9 155.3 29,4 262.6 6.1 179.3 17.1 60.1 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations* books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o ab n l ­ e Mining Railroad Other u P t u il b it l i i e c s n C i o ca m ti m on u s ­ Other 1 a ( r n S a n . t u A e) a . l 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 1967........................................ 61.66 13.70 13.00 1.42 1.53 3.88 9.88 5.91 12.74 1968 2................................... 65.78 14.40 13,24 1.63 1.44 4.46 11.17 6.67 12,77 {966—11............................... 15.29 3.51 3,27 .40 .55 1.00 2.09 1.42 3.06 60.10 HI................................ 15.57 3.54 3.30 .37 ,48 .82 2.36 1.36 3.33 61.25 IV..................... 17.00 4.07 3.68 .38 .55 .86 2.36 1.58 3.52 62.80 1967—1.................................. 13,59 3.08 3.02 .32 .41 .70 1.84 1.35 2,87 61.65 . 15,61 3.46 3.34 .34 .41 1.12 2.46 1.49 2.99 61.50 HI................................ 15,40 3.33 3.15 .37 .35 .98 2.66 1,46 3.09 60.90 IV................................ 17,05 3.82 3.48 .39 .36 1.07 2.92 1.62 3.39 62.70 1968—1................................... 14.28 2.96 2.82 .36 .37 .98 2.33 1.48 2.96 64.90 2.............................. 16.37 3.63 3.34 .40 .34 1.04 2.90 4.71 64,60 HI 2............................. 16.73 3.68 3.34 .40 .34 1.16 2.92 4,88 66,05 1 1 Includes trade, service, finance, and construction. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business, excluding agriculture. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MORTGAGE DEBT OUTSTANDING (In billions of dollars) AU properties Farm Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage E pe n r d io o d f h A e o r l l s d l ­ t F u i t i n c i n i s o a a t n l i n ­ s ­ ! a U c g i . e e h S s n o . ­ lde v o r I i s a t d n h 2 n u d e d a i r ­ l s s h A o er l l s d l ­ t F u i i c t n n i i s o a a t l n i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A o er l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s , 1 O h e o t r h l s d e ­ r c T o o m ta m l er t c u F i i a t n i i n l s o a t p n i n ­ r s , o 1 pe O h r e o t t i r h l e s d e s ­ r 5 w u F n V r H i d A t A t e e - t r n - y ­ pe t C i 6 v o e o n n n a ­ ­ l 1941........... 37,6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28 2 1945........... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4,7 4.3 26 5 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........... 300.3 241.0 11.4 47.8 18,9 7.0 11.9 281.3 197,7 170.5 27.2 83.6 63.5 20,1 77.2 204 1 1965........... 326,0 264.6 12.4 49.0 21.2 7.8 13.4 304,8 213.2 184.6 28.6 91 .6 72.2 19.4 81.2 22T 6 1966P......... 347.1 280.8 15.7 50.5 23.3 8.4 14.9 323.7 223,7 192.3 31.4 100.0 80.0 20,0 84.0 239 7 1967^......... 369.5 298.9 18.5 52,1 25.2 9.1 16,0 344.4 236,1 202.0 34.1 108.3 87,9 20.4 88.2 256 2 1966—Ip... 332.0 269.6 13.5 48.9 21.8 8.0 13.7 310.3 216.3 187.3 29.1 93.9 74.3 19.6 82.1 228,2 HP.. 338.6 274.7 14.4 49.5 22.5 8.2 14.2 316,1 219.8 189.9 29,9 96.4 76.6 19.8 82.6 233.5 IIP.. 343.3 278.2 15.2 50,0 23.0 8.4 14,6 320.4 222.0 191,3 30.7 98.4 78.5 19.9 83,4 237.0 IV”.. 347. 1 280.8 15.7 50,5 23.3 8.4 14.9 323.7 223.7 192.3 31.4 100,0 80,0 20.0 84.0 239.7 1967—IP.. . 350.4 283.2 16.4 50.9 23.7 8.5 15.2 326.8 225.2 193.2 32.0 101,6 81.5 20,1 84.4 242.4 IP.. 356.0 287.9 16.7 51 .4 24.2 8.7 15.5 331.8 228.2 195.7 32,4 103.7 83.5 20.2 85.3 246.5 HIP.. 362.7 293.4 17.5 51.8 24,7 8.9 15.8 337.9 232.2 198.9 33.2 105.8 85.5 20.3 86.4 251.5 1VP.. 369.5 298.9 18.5 52.1 25,2 9.1 16.0 344.4 236.1 202.0 34.1 108.3 87.9 20.4 88.2 256.2 1968—1"... 374.9 1 Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by savings trust depts,), mutual savings banks, life insurance companies, and savings and loan assns, and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-famiIy properties alone 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin,, are shown on second page following. and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. Other U.S. agencies (amounts small or current separate data not readily Note.—Based on data from Federal Deposit Insurance Corp,, Federal available) included with “individuals and others.” Home Loan Bank Board, Institute of Life Insurance, Depts, of Agricul­ ture and Commerce, Federal National Mortgage Assn., Federal Housing 3 Derived figures; includes debt held by Federal land banks and farm Admin,, Public Housing Admin,, Veterans Admin., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 For multifamily and total residential properties, see p. A-50. 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 n fa o t 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 Il,’471 16,272 5,041 53 1967............................... 59,019 37'642 7 309 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 r5'732 117 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 .......5..2..,.3..0..6......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 7344 2,599 24,733 16,366 3,138 47j337 42,242 14,500 11'471 16,272 5^041 53 1967—I.......................... 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 35387 7.396 2,495 25,596 16,970 3,274 48,893 43,526 14,947 11,768 16,811 5,316 51 lii......... 57,482 36.639 7,584 2,601 26,454 17,475 3,368 49,732 44,094 15,016 11,785 17,293 5,526 112 IV....................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 ’’5,732 117 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

JULY 1968 □ REAL ESTATE CREDIT A-49 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Non farm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other 1 Farm 1 Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other Farm 1945............................................... 976 6,637 5,860 I 394 4 466 766 1961.............................................. 6,785 6,233 1,388 220 4,625 552 44,203 41,033 9 665 6 553 24 815 3 170 1962.............................................. 7'478 6'859 1,355 469 5,035 619 46,902 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.............................................. 10333 9,386 L812 674 6'900 1,047 55,152 50,848 11,484 6*403 32*961 4 304 1965. 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12 068 6,286 36 836 4 823 1966. 10317 9'223 i 300 467 7,456 994 64,609 59 369 12,351 6 201 40*817 5 240 1967............................................... 8'399 7,569 753 408 6,408 830 67,’543 61,986 12 163 6 093 43 ’730 5 ’557 1967-—Apr.................................. 577 506 50 37 419 71 65 767 60 463 12 402 6 216 41 845 5 304 May.................................. 641 582 57 31 494 59 66,253 601924 i21434 61183 42*307 5 *329 June................................... 643 569 60 31 478 74 661414 61,038 12,397 6,163 42 478 5*376 July............................. 563 506 36 27 443 57 66’324 60 920 12 311 6 161 42*448 5 * 404 Aug.................................... 676 618 68 32 518 58 66,506 61,073 12,289 6’144 42*640 5*433 Sept................................... 688 631 62 36 533 57 66’,70i 61 239 12,263 6 131 42*845 5*462 Oct.................................... 675 623 68 40 515 52 661884 611401 12,236 6,124 43*041 5*483 Nov.................................. 662 603 50 30 523 59 67,097 611595 12 214 6,112 43 269 5*502 Dec.................................... 1 ,077 953 58 33 862 124 67,595 62,038 J 2,'192 6,104 43 ’742 5 *557 1968-—Jan...................... ........... 632 558 62 37 459 74 67,770 62,223 12,192 6,106 43 925 5 547 Feb..................................... 527 431 45 25 361 96 67,867 62,292 121164 6 097 44’031 5’575 M ar.................................... 640 531 52 28 451 109 68,005 621421 12,1 37 6 086 44*198 5 * 634 Apr.................................... 521 435 40 20 375 86 68,123 62,448 12,103 6,’O67 44,’278 5 ,*675 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because (I) 1959 and with '‘other” nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) Period 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.............. 201754 5,979 81524 78,770 4 376 7,010 67,284 1964....................... 5,565 5^025 5,325 2’846 2,479 1 * 199 1963.............. 24,735 71039 9,920 90,944 4^696 6,960 79,288 1965....................... 5,007 4,335 5,997 3,074 2,923 1 043 1964............. 241505 61515 10,397 101,333 4,894 6,683 89,756 1966....................... 3'804 2'866 6,935 5,006 1,929 1,036 1965............. 231847 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............. 161720 31606 71746 114,447 5,'270 6,158 103,019 1967............. 191891 4,190 9,505 121,893 5,794 6,356109,743 1967—May.......... 59 420 4,421 3,776 644 1,831 June........... 89 208 4'302 3'696 606 1 '925 1967— J M u a n y e . . . . 2 1 , , 1 73 6 8 2 4 43 0 5 0 1,0 7 4 7 6 9 1 1 1 1 5 6 , , 9 9 0 4 9 4 5 5 , , 3 3 6 8 5 4 6 6 , , 1 16 2 9 7 1 10 0 5 4 . , 3 4 9 1 1 7 July....... 1 1 9 3 3 4 2 2 7 0 4 2 4 4' ' , 2 1 2 5 1 3 3 3, , 6 6 5 8 9 0 5 4 4 9 1 4 1 1 ’5 3 2 4 1 3 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..........1.60 169 4.114 3,681 433 1 323 S O e c p t t . . . . .. . 1 1 , , 9 9 7 5 1 0 4 38 1 1 3 1,0 9 1 4 7 9 1 1 1 2 9 0 , , 5 3 2 6 9 2 5 5 , , 5 6 7 6 6 0 6 6, , 2 2 5 9 8 2 1 1 0 0 7 8 . , 6 4 9 1 5 0 N De o c v . . . . . . . . . . . . . . . 2 1 5 7 2 6 1 5 0 4 2 4 4 , , 1 3 8 8 8 6 3 3 , , 9 7 8 9 5 3 3 40 9 1 5 1 1 ’3 4 4 3 7 2 N De o c v . . . . . . 1 1 , , 7 80 5 1 9 3 3 8 8 8 0 7 8 8 5 0 6 1 12 2 1 1 , , 8 1 9 2 3 7 5 5 , , 7 7 9 1 4 4 6 6 , , 3 3 5 3 6 6 1 10 0 9 9 , , 7 0 4 7 3 7 1968—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . 3 10 0 1 8 2 1 5 9 1 5 4 4 , , 3 4 4 4 8 2 3 3 , , 8 9 0 6 6 3 4 54 7 2 9 1 1 ,1 1 8 9 2 8 1968—J F M a e n a b . r . . . . . , . . . 1 1 1 , , , 3 4 7 8 5 6 9 6 6 2 3 4 9 0 0 1 5 9 6 7 8 6 0 4 5 4 0 1 1 1 2 2 2 2 2 3 , , , 6 0 4 3 9 2 7 5 6 5 5 5 , , , 7 8 9 8 5 0 7 3 3 6 6 6 , , , 4 4 4 4 0 8 7 5 2 1 1 11 1 0 1 0 9 , , , 0 3 9 4 3 0 1 7 3 M M a a r y .. .. . . . . .. . . . 3 28 8 8 7 2 6 1 1 10 1 6 1 8 6 4 4 4 , , ’ 2 7 5 6 1 4 9 9 5 4 3 4 , ' J 0 7 9 3 2 7 3 6 5 5 5 3 2 19 6 2 1 1 1 ’ , , ,2 3 2 9 0 7 3 0 2 Apr,.. 1 ,952 475 934 124,305 5,964 6,528 111,813 May . 2,081 501 1 ,041 125,258 6,032 6,564 112,662 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than i Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. no 2 t s B h e o g w in n n i s n e g p a w ra it t h e ly 1 . 958, 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

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- Mortgages Mortgages underwritten Period Total Ex­ e P c r t o s j­ 1 P e i r m r o ty p ­ ­ Total 3 Ex­ E pe n r d i o o d f Total FHA- VA- t C i v o e o n n n a ­ ­ l h N om ew es h i o st m in e g s m pr e o n v ts e ­ 2 h N om ew es h i o st m in e g s Total su in re ­ d a g n u te a e r d ­ 1 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 3 045 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 1965............................ 8,689 1,705 5,760 591 634 2 652 876 1 774 1964............. 197.7 69.2 38.3 30 9 128.5 1966............................ 7,320 1,729 4 366 583 641 2 600 980 1 ’618 1965................ 213.2 73.1 42.0 31.1 140.0 1967............................. 7 J 50 1,369 41516 642 623 3 405 1 143 2,259 1966............... 223.7 76.0 44.8 31.2 147.8 1967^.............. 236.1 79.9 47.4 32,5 156.2 1967—May................. 508 87 320 44 58 231 76 154 June................. 626 105 403 57 61 266 81 185 1965—1........... 200.7 70.0 39.0 31.0 130,7 July.................. 595 103 399 36 58 296 82 214 II......... 205.0 70.7 39.7 31,0 134,3 Aug.................. 762 129 525 45 62 340 97 243 HI........ 209.2 72.0 40.9 31.1 137,2 Sept.................. 758 129 514 58 56 352 101 251 IV........ 213.2 73.1 42.0 31.1 140.0 Oct................... 817 150 515 88 64 434 125 310 Nov.......... 746 149 471 72 53 383 127 255 1966—1........... 216.3 74.1 43.0 31.1 142.2 Dec........... 594 124 334 90 47 340 124 217 II......... 219.8 74.6 43.7 30.9 145.2 Ill........ 222.0 75.4 44.4 31.0 146.6 1968—Jan................... 693 147 431 70 45 349 135 213 IV........ 223.7 76.0 44.8 31.2 147.8 Feb................... 573 124 312 100 36 280 111 169 Mar.................. 535 120 314 62 39 267 115 152 1967—P......... 225.2 76.4 45.2 31.2 148.8 Apr.................. 603 131 340 80 53 265 110 156 ID........ 228.2 77.2 45.7 31.5 150.9 May................. 686 121 374 131 60 280 112 168 HF’.. .. 232.2 78.3 46.6 31.7 153.9 IVP.. . . 236.1 79.9 47,4 32.5 156.2 i Monthly figures do not reflect mortgage amendments included in annual totals. 2 Not ordinarily secured by mortgages. i Includes outstanding amount of VA vendee 3 Includes a small amount of alteration and repair loans, not shown separately; only such accounts held by private investors under repurchase loans in amounts of more than $1,000 need be secured. agreement. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans Note.—For total debt outstanding, figures are represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans FHLBB and F.R. estimates. For conventional, closed. Figures do not take into account principal repayments on previously insured or figures are derived. guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on Based on data from Federal Home Loan Bank number and average amount of loans closed. Board, Federal Housing Admin., and Veterans Admin. FEDERAL NATIONAL MORTGAGE ASSOCIATION MORTGAGE DEBT OUTSTANDING ACTIVITY ON RESIDENTIAL PROPERTIES (In millions of dollars) (In billions of dollars) Mortgage holdings tr M an o s r a t c g t a io g n e s Com­ All residential Multifamily 1 (during mit­ End of End of period) ments period Finan­ Finan­ period Total FH in A ­ - g V u A ar - ­ d u i n s ­ ­ Total in ci s a t l i ­ h O ol t d h e e r r s Total i c n i s a t l i ­ h O ol t d h e e r r s sured anteed Pur­ Sales bursed tutions tutions chases 1941............... 24.2 14.9 9.4 5.8 3.6 2.2 1961........................... 6,093 3,490 2,603 81S 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........................... 4'650 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 1’416 424 251 313 1962............... 192.5 157.9 34.6 25.8 17.5 8.3 1965......................... 4,731 3,'404 1327 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 70S 1967........................... 8’870 6’, 803 2'066 2,260 12 1,672 1964............... 230.9 195.3 35.7 33.2 24.8 8.5 1965............... 250.0 213.1 36,8 36.8 28.5 8.3 1967—May............... 7,484 5,767 1,717 65 1 835 1 966p............. 263.2 223.2 40.0 39.5 30.9 8.5 June............... 7'524 5'811 1,713 88 6 1,104 1967P............. 278,6 235.7 42.9 42.5 33.8 8.8 July................ 7; 624 5; 890 1,734 136 1,333 Aug................ 7,872 6,076 1,796 291 1 1,447 1965—III. . .. 245.1 208.7 36.3 35.8 27.5 8.3 Sept................ 8,’105 6.249 1,856 272 1.473 IV.... 250.0 213.1 36.8 36.8 28.5 8.3 Oct.......... 8,371 6,441 1,930 307 1,535 Nov.............. 8,610 6,615 1,995 279 1 ’,676 1966—IP. .... 254.1 216.6 37.5 37.7 29.3 8.4 Dec................ 8'870 6,803 2,066 299 1,672 IP.. . . 258.3 219.9 38.4 38.5 30.0 8.5 HIP. . . 261.0 221.8 39.2 39.0 30.5 8.5 1968—Jan................. 9,220 7,052 2,168 388 i 1,588 IVP.. 263.2 223.2 40.0 39.5 30.9 8.5 Feb................ 9,525 7^268 2,257 341 1,494 Mar................ 9,800 7,474 2,326 316 1,451 1967—P*........ 265.4 224.7 40.7 40.2 31.6 8.6 Apr................. 10,046 7,657 2,389 289 1 ^454 IP.. . . 269.0 228.0 41.1 40.9 32.2 8.6 May................ 10,282 7,837 2,445 280 .....1..,.4.2..1. HIP. . . 273.9 231.9 42.0 41.7 33.0 8.7 IVp.... 278.6 235.7 42.9 42.5 33.8 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

JULY 1968 a REAL ESTATE CREDIT A-51 TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n t e n c e t r ) t ­ c F c h e e ( a e p n r s e t g ) r e & I s M (y a e t a u r r s i ) ty L p c r ( o a e r p i t n a e c i n t o r e ) / (t d h c o p o P h l r u u l a i a c s r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r n , n s o ) t f C c t ( r r e p a o a n e t n c e t r ) t ­ c F c h e ( e a p e n r s e t g ) r e & ] s M (y a e t a u r r s i ) ty L c p r ( a o e p r n t i a e i c t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t d h a L m o o l o u l o a a s u . r n n s o ) t f 1963....................... 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19,2 70,8 17,8 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....................... 5.74 .49 25.0 73.9 25.1 18.5 5.87 .55 21.8 72.7 21.6 15.7 1966....................... 6.14 .71 24.7 73.0 26.6 19.4 6.30 .72 21.7 72.0 22.2 16.1 1967..................... 6.33 .81 25.2 73.6 28.0 20.6 6.40 .76 22.5 72.7 24.1 17.5 1967 —May....... 6.25 .77 25.3 74.0 27.5 20.4 6.29 .70 22.3 72.7 24.1 17.5 June........... 6.23 .76 25.2 74.0 28.1 20.8 6.28 .67 22,8 72.5 25.1 18.2 July............ 6.31 .77 25.2 73.9 28.4 21.0 6.30 .70 22.7 72.9 24.8 18.1 Aug........ 6.28 .78 25.2 73.7 28.5 21.0 6.34 .72 22.8 73.4 24.7 18.1 Sept............ 6.31 .78 25.3 74.2 28.8 21.4 6.36 .73 22.5 72.7 23.9 17.4 Oct.............. 6.34 .82 25.4 73.8 28.7 21.2 6.39 .78 22.5 73.0 23.7 17.3 Nov............. 6.33 .76 25.3 73.4 28.9 21.2 6.42 .77 22.7 72.9 25.1 18.3 Dec............. 6.41 .84 25.4 72.7 29.6 21.5 6.51 .83 23.1 73.1 25.2 18.4 1968-—Jan.............. 6.39 .86 25.4 72.9 29.7 21,7 6,57 .82 22,7 73.7 24.9 18.4 Feb............. 6.47 .94 25,5 74.5 29.8 22.2 6.58 .81 22.6 73.6 24.5 18 0 Mar............ 6.50 .88 25.7 74.3 30.2 22.4 6.59 .79 23.0 73.3 25.4 18.6 Apr............. 6.57 .88 25.3 73.4 30.3 22.2 6.64 .80 22.6 72.8 25.1 18.3 May".......... 6.68 .94 25.0 72.9 30.5 22.2 6.80 .86 22.5 73. 1 25.5 18.6 i Fees and charges—related to principal mortgage amount—include originated by major institutional lender groups (including mortgage loan commissions, fees, discounts, and other charges, which provide companies) for purchase of single-family homes. Data exclude loans for added income to the lender and are paid by the borrower. They exclude refinancing, reconditioning, or modernization; construction loans to any closing costs related solely to transfer of property ownership. home-builders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning 1965, not strictly comparable Note.—Compiled by Federal Home Loan Bank Board in cooperation with earlier data. See also the table on Mortgages: New and Existing with Federal Deposit Insurance Corporation. Data are weighted averages Homes, p. A-33. 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 but delinquent for— Loans in (thousands) mortgaged End of period fore­ structures) Total 30 days 60 days o 9 r 0 m da o y re s closure 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 1967........................................ 110*5 44 1966......................... 3.40 2.54 .54 .32 .36 1967.......................... 3.47 2.66 .54 .27 .32 1965—1.................................. 27.9 48 ...............3.0.. ..1............. *52 1965—1..................... 2,94 2.06 .54 .34 .37 Ilf............................... 29 1 50 ii................... 3,00 2.18 .52 .30 .38 IV................................ 29.6 50 iii.................. 3.20 2.30 .56 .34 .38 IV.... 3,29 2,40 .55 .34 .40 1966—1................................... 28,8 48 H......................... 30 8 *51 1966—1..................... 3.02 2.13 .55 .34 .38 in,...................... 29 3 48 IL................. 2.95 2.16 .49 ,30 .38 IV............................... 28.6 46 HI.................. 3,09 2.25 ,52 .32 .36 IV.................. 3.40 2.54 .54 .32 .36 1967—1................................... 29.5 48 ..............2..9.....0............. *47 1967—1.................... 3.04 2.17 .56 .31 .38 Ill............................... 27.2 .43 II... .............. 2,85 2.14 .45 .26 .34 IV................................ 24.9 40 iii............. 3.15 2.36 .52 .27 .31 1968—I................................... 24.2 .38 iv................ 3.47 2.66 .54 .27 .32 1968—1..................... 2.84 2.11 .49 .24 .32 Note.—Federal Home Loan Bank Board estimates of number of nonfarm mortgaged structures at end of period and of non­ farm properties acquired during period through foreclosure Note,—Mortgage Bankers Association of America data from reports on 1- proceedings (excluding voluntary deeds in lieu of foreclosure and to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held defaults on real estate contracts). Data exclude Alaska and by more than 400 respondents, including mortgage bankers (chiefly), commercial Hawaii. banks, savings banks, and savings and loan associations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e i o l r e ­ co g O p n o a s t o p h u d e e m s r r er e a r n R l n o d i e a z p m n a a t s o i i o r t d 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 ic it 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......................................... 51665 2,462 455 816 182 1,009 3,203 746 1,612 845 I960......................................... 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961......................................... 57,678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1962......................................... 63', 164 48,034 19,540 12,605 3,246 12,643 15,130 5,456 51684 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 (967-- May............................. 93,917 74,290 30,852 19,442 3,670 20,326 19,627 8,017 6,231 5,379 June............................. 94,813 75,051 31,208 19,580 3,696 20,567 19,762 8,077 6,334 51351 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 8J89 6,471 5.211 Nov, 96,802 76,680 31,217 20,340 3,748 21,375 20,122 8,237 6,614 5,271 Dec...................... 99,228 771946 31,197 21,328 3,731 21,690 21,282 8,267 7,595 5,420 1968--Jan.................. 98,225 77,467 31,061 21,097 3,678 21,631 20,758 8,288 6,970 5,500 Feb............................... 97,672 77,327 31,137 20,785 3,653 21,752 20,345 8,325 6,386 5,634 Mar.................. 97,875 77,581 31,380 20,692 3,636 21,873 20,294 8,370 6,263 5,661 Apr.............................. 99,142 78,345 31,766 20,802 3,649 22,128 20,797 8,488 6,559 5,750 May.............................. 100,275 79,270 32,240 20,953 3,699 22,378 21 ,005 8,508 6,830 5,667 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit/’ Section 16 (New) of Supplement to Banking anil Monetary Note.—Consumer credit estimates cover loans to individuals for house- Statistics, 1965, and May 1966 Bulletin. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n c m k ia s ­ l fi S n c a a o l n s e . c s e u C n r i e o d n i s t fi s C n u a m o n n e c ­ r e 1 Other1 Total D st m o ep r e e n a s r t t 2 ­ F st t u o u r r r n e e s i­ A s a t p o n p r c e e li s ­ d m e A a o u l b e t i o r l s ­ e 3 Other 1939............................. 4,503 3,065 J ,079 1,197 132 657 1,438 354 439 183 123 339 1941............................. 6’085 4,480 1'726 1 ’797 198 759 1,605 320 496 206 188 395 1945 ............................. 2,462 1,776 '745 '300 102 629 '686 131 240 17 28 270 1960.............................. 42,832 37,218 16,672 11,472 3,923 3,670 1 ,481 5,615 2,414 1,107 333 359 1,402 1961.............................. 43,527 37,935 17,'008 11,273 4,330 3,'799 1,525 5,595 2,'421 1,058 293 342 1,481 1962............................. 48’034 41’782 19'005 12’194 4,902 4'131 1 ,550 61252 31013 1 ,073 294 345 11527 1963............................. 54,158 47,405 22,023 13,523 5,622 4,590 1 ,647 6,753 3,427 1,086 287 328 1,625 1964............................. 60,548 53'141 25'094 14'762 6,458 5’078 11749 71407 31922 11152 286 370 11677 1965.............................. 68,565 60,273 29'173 16’138 7,512 5'606 1844 81292 41488 1 ,235 302 447 1 ,'820 1966.............................. 74*656 65,565 32'155 16,'936 8'549 6’014 1,911 91091 n.a. n.a. n.a. 490 n.a. 1967.............................. 77,946 68,273 3 3’,992 16,851 9,169 6,294 1 ’,967 9,673 n.a. n.a, n.a. 506 n.a. 1967—May.................. 74,290 65,733 32,560 16,615 8,665 5,947 1,946 8,557 n.a, n.a, n.a. 494 n.a. June.................. 75'051 66,452 32,966 16'721 8,826 5'995 1,944 8,599 n.a. n.a. n.a. 502 n.a. July................... 75’,348 66’,781 33'235 16,747 8,864 6',009 1,926 8,567 n.a. n.a. n.a. 506 n.a. Aug........... 75,889 67,273 331536 16'755 8,991 61036 1,955 81616 n.a. n.a. n.a. 508 n.a. Sept,.................. 76,039 67’376 33,637 16,701 9,’026 6,067 1 ,945 8,663 n.a. n.a. n.a. 507 n.a. Oct............ 76.223 67,513 33,723 16,698 9,054 6,086 1,952 8,710 n.a, n.a. n.a. 506 n a Nov................... 76,680 67,763 33,819 16,722 9,113 6,138 1,971 8,917 n.a n.a. n.a. 506 Dec................... 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 1968—Jan..................... 77,467 68,076 34,017 16,775 9,063 6,251 1 ,970 9,391 n.a. n.a n.a. 504 Feb.................... 77,327 68,215 34’155 16,706 9,094 6’,270 1 ,990 9,112 n.a n.a. n.a. 507 Mar................... 77,581 68,570 34’411 16’700 9,172 6,289 1 998 9 011 n.a 514 A pr........ 78i345 69’,332 341908 16,790 9,31 1 6,336 1 987 9,01 3 522 May.................. 79^270 70.231 35*450 16,892 9 ,’475 6J6I 2^053 91039 n.a. n.a. n.a. 531 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

JULY 1968 □ CONSUMER CREDIT A-53 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 g c u o o m o n d e ­ s r e m r a n n o iz d d a ­ ­ s l P o o a e n n r a ­ s l End of period Total m A o u b t i o le ­ s O c u o t m h n e e ­ r r m R o a e n p d d a e i r r n ­ s P o e n r a ­ l ch P a u s r e ­ d Direct paper lo ti a o n n s paper g p o a o p d er s iz lo a a ti n o s n loans 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 1960......................... 16,672 5,316 2,820 2,759 2,200 3,577 1960................................ 11,472 7,528 2,739 139 1 066 1961......................... 17.008 5,391 2,860 2,761 2,198 3,798 1961................................ 11'273 6,811 3,100 161 1 201 1962......................... 19,005 6,184 3,451 2,824 2,261 4,285 1962................................ 12,194 7,449 3 J23 170 1 452 1963......................... 22,023 7,381 4,102 3,213 2,377 4,950 1963................................ 13,523 8,228 3,383 158 1 754 1964........................ 25'. 094 8,691 4,734 3,670 2,457 5,542 1964................................ 14’762 8,701 1,889 142 2,030 1965......................... 29,173 10,310 5,721 4,266 2,543 6,333 1965 ............................... 16'138 9,241 4,429 123 2 345 1966......................... 32,155 11,370 6,165 5,’101 2,567 6,952 1966............................... 16,936 9,391 4,829 110 2,606 1967........................ 33,992 11,400 6,569 5,808 2,523 7,692 1967 ............................... 16*851 8,959 5 ,017 103 2,772 32,560 11,313 6,307 5,342 2,489 7,109 1967—May.................... 16,615 9,150 4,751 105 2,609 June............. 32,966 11,414 6,402 5,431 2,505 7,214 June.................... 16^721 9,238 4^761 106 2,616 July.............. 33,235 1^489 6,451 5,500 2,519 7,276 July..................... 16^747 9,252 4,752 108 2,635 33,536 11,538 6,494 5,556 2,536 7,412 16,755 9 200 4'781 107 2,667 Sept............. 33,637 11,497 6,490 5,619 2,538 7,493 Sept,.................. 16,701 9,079 4,824 107 2,691 Oct......... 33,723 11,463 6,515 5,656 2,539 7,550 Oct............ 16^698 9,024 4’863 107 2 704 Nov........ 33,819 11,428 6,545 5,696 2,534 7,616 Nov..................... 16,722 8,990 4,907 105 2,720 Dec............... 33,992 11,400 6,569 5,808 2,523 7,692 Dec..................... 16,851 8,959 5,017 103 2,772 1968—Jan............... 34,017 11,364 6,600 5,850 2,482 7,721 1968—Jan...................... 16,775 8,873 5,032 98 2,772 Feb............... 34,155 11,401 6,653 5,867 2,459 7,775 Feb..................... 16,706 8,845 4,977 93 2’,791 Mar........ 34,411 11,489 6,749 5,897 2,444 7,832 Mar..................... 16,700 8'865 4'947 89 2,799 Apr.............. 34',908 11,643 6,854 5,985 2,457 7,969 Apr.................... 16’,790 8,931 4*957 86 2,816 May............. 35,450 11,841 6,982 6,076 2,479 8,072 May.................... 16,892 9,004 4,973 83 2,832 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 Com­ O fin th a e n r ­ De­ Other S c e r r e v d ic it e 1 19 9 4 3 1 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 8 5 9 7 1 8 2 1 2 2 3 4 6 1 1 4 5 6 7 6 8 9 5 b m c a i n e a k r l ­ s tu in c ti i s o a t l n i ­ s s m t p o a e r r n e t­ s t 1 o r u e t t l a e i t l s C ca r r e d d s it 2 1945................................ 731 54 20 14 643 1960. 9,074 1,665 771 800 5,837 1939............. 2,719 625 162 236 1,178 518 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 I960............. 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 1967 May.................... 16,558 3,588 1,286 1,076 10,608 1965............. 19,319 6,587 1*095 968 5^055 723 4,891 June................... 16,765 3,652 1,291 1,085 10,737 1966.............. 20,130 6,714 1J30 n.a. n.a. 874 5,*142 July.................... 16,799 31666 1,294 1,084 10,755 1967,........... 21',282 7,064 l',203 n.a. n.a. 1 ,054 5^420 Aug . ................. 16*982 3,715 1 ,310 1,100 10,857 Sept..................... 171038 3,723 1,315 1,097 10,903 1967—May.. 19,627 6,848 1,169 n.a. n.a. 939 5,379 Oct............... 17,092 3,729 1,319 1 ,100 10,944 June.. 19,762 6,902 1,175 n.a. n.a. 965 5,351 Nov..................... 17,222 3,748 1,326 1,109 11,039 July... 19,767 6,927 1,173 n.a. n.a. 1,024 5,321 Dec................... 17^430 3,763 1 ,336 1,105 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 1968 Jan...................... 17,284 3,720 1,328 1 ,098 11,138 Oct... 19,871 7,001 1,188 n.a. n.a. 1,056 5,211 Feb..................... 171354 31731 I ,336 1,101 11,186 Nov,.. 20,122 7,034 1,203 n.a. n.a. 1,046 5,271 Mar..................... 17,459 3,763 1 ,351 1,103 11,242 Dec... 21,282 7,064 1,203 n.a. n.a. 1,054 5,420 Apr..................... 17,634 3*,816 1,369 1,106 11,343 May..................... 17,889 3,882 1 ,396 1,137 11 ,474 1968—Jan... . 20,758 7,075 1 ,213 n.a. n.a. 1,081 5,500 Feb.. . 20,345 7,098 i ,227 n.a. n.a. 1,040 5,634 Mar... 20,294 7,136 1 ,234 n.a. n.a. 1,025 5,661 Note.—Institutions represented are consumer finance companies, credit Apr.. . 20,797 7,246 1 ,242 n.a. n.a. 1 ,069 5,750 unions, industrial loan companies, mutual savings banks, savings and May.. 21,005 7,242 1 ,266 n.a. n.a. I .092 5,667 loan assns., and other lending institutions holding consumer instalment loans. See also Note to first table on previous page. t 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

WINOMIVIUR UIALUII ^ JULI X ^VO INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p um er er mode R r e n p iz a a ir ti o a n n d l oans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 196!......................................... 48,396 16,007 14,578 2,068 15 744 1962......................................... 55’126 19'796 15,685 2 051 17’594 1963......................................... 61,295 22,292 17,102 2 198 19 703 1964......................................... 67,505 24'435 19,473 2,204 21*393 1965......................................... 75'508 27’914 21 454 2’238 23 902 1966......................................... 7 8,’896 28,491 23,502 2,136 24*767 1967......................................... 81,263 27,221 25’,7 87 2 076 26 179 1967—May............................. 6,554 7,062 2,238 2,559 2,032 2,074 180 219 2 104 2 210 6’823 7’458 2,338 2’678 2’081 2 155 190 215 ? 214 2 410 July.............................. 6,776 6,859 2,266 2,396 2,147 2,071 175 191 2’188 2’201 Aug.............................. 6,929 7,223 2,285 2,392 2’212 2’229 175 210 2 257 2 392 Sept.............................. 6,973 6,590 2,322 2,’042 2^234 2 205 166 176 2,251 2’167 Oct................... 6.942 6,912 2^321 2,355 2,165 2’215 171 178 2 285 2*164 Nov................. 7,032 7'032 2,305 2,222 2,242 2 375 180 178 2’305 2*257 Dec............................... 7’035 7*829 2^306 2^094 2’,321 3,088 169 141 2 239 2*506 1968—Jan............................... 7,089 6,363 2,437 2,178 2,223 1,992 165 132 2,264 2 061 Feb............................... 7,245 6,372 2^519 2,301 2’250 1 854 179 138 2,297 2*079 Mar............................. 7,380 7,100 2,567 2,589 2,331 2,140 183 162 2 299 2*209 Apr............................... 7,342 7’694 2,517 2,789 2’354 2,280 187 190 2,284 2’435 May............................. 7>79 7'883 2^78 2,875 2'319 2,334 194 232 2^88 2,442 Repayments 1961......................................... 47,700 16,472 14,246 2,015 14,967 1962......................................... 50,620 17’,478 14,939 1,996 16,206 1963......................................... 55,171 19,400 15,850 2,038 17,883 1964......................................... 61,121 21,676 17,737 2,078 19,610 j 965......................................... 67^495 24,267 19'355 2,096 21,777 1966......................................... 72 ,'805 26,373 21^361 2,060 23^011 1967......................................... 77^973 26’,98 5 24,293 2,096 24’599 1967—May............................. 6,361 6,612 2,219 2,342 1,948 2,008 178 185 2,016 2,077 6’531 6,697 2'281 2’322 1,995 2,017 184 189 2'071 2,169 July.............................. 6,551 6^562 2^228 2; 240 2,074 2,044 175 176 2,074 2,102 Aug,...................... 6,585 61682 2,240 2',301 2,079 2'081 171 178 2’095 2,122 Sept.............................. 61689 6^40 2,280 2,201 2,106 2’046 178 177 2,125 2,016 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 2,114 2,167 2 J00 167 158 2; 068 2,191 1968—Jan.. ............................ 6,691 6,842 2,302 2,314 2,088 2,223 183 185 2,118 2,120 Feb.............................. 6,679 6,512 2’308 2 ,’225 2,110 2,166 170 163 2’091 1,958 Mar.............................. 6,814 6,846 2,330 2,346 2,173 2,233 182 179 2,129 2,088 Apr............................. 6’800 6,930 2’339 2’403 2,159 2*170 173 177 2’129 2,180 May...................... 6^69 6,958 2’343 2,401 2,’ 159 2J83 180 182 2,187 2,192 Net change in credit outstanding 2 1961 ............................... 696 -465 332 53 777 1962.............................. 4,506 2,318 746 55 1,388 1963......................................... 6,124 2,892 1,252 160 1,820 1964 ............................. 6'384 2’759 1 '736 126 1,763 1965......................................... 8’013 3'647 2^099 142 2,125 1966 ..................................... 6'091 2’118 2,141 76 1,756 1967........................................ 3’290 '236 1,494 -20 1,580 1967 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 1968—Jan............................... 398 -479 135 -136 135 -231 -18 -53 146 -59 Feb............................... 566 -140 211 76 140 -312 9 -25 206 121 Mar............................. 566 254 237 243 158 -93 1 -17 170 121 Apr............................... 542 764 178 386 195 1 10 14 13 155 255 May............................. 610 925 235 474 160 151 14 50 201 250 1 Includes adjustments for differences in trading days. . sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less repay­ the amount of extensions and repayments without affecting the amount ments. outstanding. For back figures and description of the data, see “Consumer Credit,” Note.—Estimates are based on accounting records and often include Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, financing charges. Renewals and refinancing of loans, purchases and and May 1966 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ CONSUMER CREDIT A-55 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p fi a n n a i n es ce Ot i h n e st r i t f u in ti a o n n c s ial Retail outlets Period S.AJ N.S.A. S.A.1 N.S.A. S.A.t N.S.A. S.A.' N.S.A. S.AJ 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(20 (2 575 1966......................................... 78’896 3H 114 14,951 18,986 13,845 1967........................................ 81 263 32 314 14*675 19 633 14 641 1967—May.......................... 6,554 7,062 2,577 2,891 1,193 1,278 1 ,614 1 ,728 1,170 1,165 June............................. 6'823 7358 2,698 3,004 1 ,235 1 1367 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 I ,203 1 ,260 I '677 1 ’775 1 ,253 i *243 Sept.............................. 6^973 6,590 2,828 2’636 1 ,’206 l’l42 1,675 1 588 1 264 1 ,224 Oct................. 6,942 6,912 2,767 2 769 I ’,263 1 ’284 I ,686 1 *606 1 *226 1 ,253 Nov................. 7,032 7,032 2,785 2,633 I ,283 1 ,283 1 ,698 1 707 1 '266 1 409 Dec................. 7,035 7’829 2,814 2,’650 I ,'275 1 ,376 1 ,656 1 ,837 I 290 1,966 1968—Jan............................... 7,089 6,363 2,884 2,710 1 ,264 1,141 1,668 1 463 1 ,273 1,049 Feb.............................. 7,245 6’372 2,967 2,725 1 ,309 1'157 1 J32 1 ,535 1 ’237 *955 Mar.............................. 7'380 7,100 3'038 2,962 1 329 1 ’ 289 1 ’733 1 ,’680 1 ’280 1,169 A pr................. 7,342 7,694 3’036 3'323 1 ,289 1 ’336 1 ’708 1 J95 1 '309 1 ,240 M ay............................. 7.479 7,883 3.091 3 J 70 1.314 1 .373 1 .809 1 '888 1.265 1 '252 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 12,21 1 13,618 9,016 1964........................................ 61,12! 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 1967......................................... 77'973 30'477 14'760 18’,677 14,059 1967—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.......................... 6,585 6,682 2^566 2,644 1 '255 1 1252 1 ,578 1 ,592 1'186 1,194 Sept............................. 6'689 6,440 2^616 2’535 1 '252 1'196 1 '615 1 *532 1,206 l’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 1 ,246 1,247 1 ,527 1 ,629 1,239 1^10 1968—Jan............................... 6.691 6,842 2,624 2,685 1 ,245 1 ,217 1 ,607 1 ,609 1,215 1 ,331 Feb.............................. 6,679 6,512 2'665 2,587 1 ,225 1 ,226 1 ,580 1 ,465 1 '209 1 ,234 Mar.............................. 6,814 6,846 2,720 2,706 1 ,232 1 ,295 I ,607 1 ,575 1 ’255 1 ,270 Apr..................... 6,800 6'930 2^750 2’826 1 .206 1 .246 1,592 1 '620 1 ^252 1 '238 May............................ 6.869 6,958 2,751 2’828 1 ,252 1 .271 1 .637 1 .633 1 .229 1 .226 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 1 ,426 654 1965........................................ 8,013 4,075 1,376 1 ^677 885 1966........................................ 6j091 2,’982 798 1 ,512 799 1967........................................ 3,290 1 ,837 -85 ’956 582 1967—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 1968—Jan............................... 398 -479 260 25 19 -76 61 - 146 58 -282 Feb............................. 566 -140 302 138 84 -69 152 70 28 -279 Mar,,... ..................... 566 254 318 256 97 -6 126 105 25 -101 Apr.............................. 542 764 286 497 83 90 116 175 57 2 May............................. 610 925 340 542 62 102 172 255 36 26 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

M~ UO iinmuoihiml rnuuuu i iuin; o.h. u jult l^oo MARKET GROUPINGS (1957-59 = 100) 1957-59 1967 1967 1968 pro­ aver­ Grouping por­ age” tion May June July Aug. Sept. Oct. Nov, Dec. Jan. Feb. Mar.' Apr/ May Total index..................................... 100.00 158.0 155.6 155.6 156.6 158.1 156.8 156.9 159.5 162,0 161.2 162.0 163.0 162.5 164.1 Final products, total.......................... 47.35 158.3 156.3 156.8 157.1 158.2 157,0 156.9 160.0 161.9 160.8 162.0 163.5 161.7 163.1 Consumer goods............................ 32.31 148.4 146.0 146.9 147,1 148.6 147,0 147.9 150,1 152.8 151,3 152.9 155.0 153.3 155.1 Equipment, including defense. . ., 15.04 179.6 178.5 178.1 178.4 178.9 178.6 176.1 181,1 I81 .5 181.4 181.6 181.8 179.8 180.2 Materials....................................... 52.65 157.7 154.6 154.9 156.1 157.9 156.7 157.4 159.5 162,2 161 .7 161.8 162.8 163.4 164.9 Consumer goods Automotive products........................... 3.21 149.1 145.8 151.2 155,2 161.1 142.1 145.2 152.4 170,0 164.2 162.7 173.4 168.7 178.4 Autos............................................... 1.82 145.7 149.9 156.0 160.7 163.7 133.4 135.3 144,5 175.1 163.2 158.0 172.7 166.8 182.3 Auto parts and allied products........ 1.39 153,6 140.5 144.8 148.0 157.8 153.6 158.2 162.9 163,3 165.4 168.8 174.4 171 .2 173.4 Home goods and apparel.................... 10,00 149.9 144.1 143.9 144.0 147.9 148.7 149.9 152.7 152.4 151,4 153.0 155.3 153.6 153.5 Home goods...................................... 4.59 166.0 158.5 156.6 157.3 163,4 164,1 166.4 170.8 168,3 169, 1 171.5 1 72.9 170.1 170,5 Appliances, TV, and radios.......... 1.81 159.5 143.8 138.6 143.3 155.0 155,9 162.9 168.4 158,7 159.3 162.6 164.8 156.8 157.0 Appliances................................. 1.33 163.1 147.0 149.7 152.2 153,9 153.7 164.2 168.7 160,8 165.1 165.9 168,4 158,9 158,8 TV and home radios................. .47 149.2 135.0 107.3 118.0 158.3 162.0 159.2 167.6 152,7 142.7 153.1 154.8 151,0 151,7 Furniture and rugs......................... 1.26 159.6 157.2 157.3 156.3 156.9 157.8 159.7 163.4 166,5 166.4 169.2 169.9 170.1 172.4 Miscellaneous home goods............ 1.52 179.0 177.1 177.3 174.8 178,8 179,0 176. 1 179,6 181,3 182.9 184.0 185.0 185.8 184.9 Apparel, knit goods, and shoes........ 5.41 136.2 131.9 133,2 132.8 134,8 135.7 136.0 137,4 139,0 136.5 1 37.3 140,3 139.6 Consumer staples............................... 19.10 147.5 147.0 147.8 147.3 146.9 146.9 147.3 148.4 150.1 149.0 151.2 151.7 150.5 132.1 Processed foods................................ 8.43 130.0 130.3 130.2 129.0 129.8 129.7 129,5 129.5 130.4 129.5 130.6 131.3 131.1 132.0 Beverages and tobacco...................... 2.43 136.4 133.2 136.5 136,3 137.9 135,8 137,6 139,2 142,2 j36,8 141.8 141 .7 1 39.4 Drugs, soap, and toiletries.......... 2.97 183.0 182.3 182.7 184.0 178,0 179.8 181,6 183.1 184.3 184.2 185.9 187.5 184.3 188.6 Newspapers, magazines, and books. 1.47 140. 1 142.5 141,4 142.1 140.9 136.2 134,8 135.7 138.5 138.4 141 .5 142.1 142.1 145.2 Consumer fuel and lighting.............. 3.67 168.3 166.9 169,3 168.3 168.8 170.5 171,2 174,1 176.8 1 76.9 179.6 179,4 177 8 Fuel oil and gasoline..................... 1.20 132.5 130,5 135.9 131,3 130,7 138,5 138,1 135,4 137.8 131.8 135.4 136.2 138.1 140.6 Residential utilities......................... 2.46 185.7 184,6 185.6 186.4 187.4 186.0 187,4 192.9 195.8 198.8 201.2 200.4 197.2 Electricity.............................. 1.72 199.8 198.6 199.5 200.4 201.6 199.5 201,4 209.1 213.0 215.4 218.4 217.3 212,5 .......... Gas.............................................. 74 Equipment Business equipment............................ 11.63 182.9 182.1 181.3 180.8 180.6 179.8 176.9 183.5 183.4 183.3 182.9 183.3 181.3 181.3 Industrial equipment......................... 6.85 170.3 169,1 169.0 169.0 166,8 166.6 162.3 170.4 168.9 168,0 165.8 167,0 165,9 165.4 Commercial equipment..................... 2.42 200.9 200.8 200.5 201.1 201 .9 200,3 199,0 200.9 204.7 204.2 206.1 205.4 204,4 203.6 Freight and passenger equipment. .. 1.76 215.4 211.7 208.9 210.2 214.1 210,4 209.9 222.9 228.4 226.4 230.1 227.8 220,9 224.3 Farm equipment................................ .61 158.7 167.6 162.8 148.6 154.3 158,5 157.5 147,2 131.2 148.3 146.4 150.6 149.3 .......... Defense equipment............................. 3.41 Materials Durable goods materials.................... 26.73 152.1 149,7 148.9 149.7 151.8 148.5 149.0 152.3 155.7 154.9 155.4 156.7 157.0 159.2 Consumer durable............................. 3.43 144.6 143.7 143.3 141.8 142.7 134.9 133,3 143.8 159.4 162.3 162.2 160.1 154.6 163.2 Equipment....................................... 7.84 184.5 180.9 179.6 181.2 186,3 184,7 184.1 186.0 184.9 183.9 186,7 185.1 181 .9 183.6 Construction...................................... 9.17 140.1 137.1 137,2 138.1 139.0 140.0 139.3 140.9 143.9 142.9 143.3 145,8 144.1 144.7 Metal materials n.e.c......................... 6.29 133.5 130.0 130. 1 132.4 129.8 125.1 128.6 132.2 139.3 137.3 141.4 140.7 144.6 144.7 Nondurable materials......................... 25.92 163.4 159.6 161.1 162.6 164,2 165.2 166.0 166.9 168.9 168.7 168.3 169.1 169.9 170.8 Business supplies............................... 9.11 152.2 150.1 151.3 150.9 151.7 153.1 152,5 153.2 154.7 154.4 151.1 150.1 152.3 154.7 Containers..................................... 3.03 148.5 146.2 145,1 141.7 143,0 150,4 153,7 152.6 152.0 154.3 144.5 142.8 152.2 155.0 General business supplies.............. 6.07 154. 1 152.0 154,4 155.5 156.0 154.5 151.9 153.5 156.0 154.5 154.4 153.8 152.4 154.5 Nondurable materials n.e.c............... 7.40 201.8 196.0 196.1 195.8 198.9 203.0 206.8 209.3 216. 1 213.5 213.9 215.7 215.2 216.6 Business fuel and power.................... 9.41 144.0 140.3 143.0 147.7 149.1 147.3 146,9 146.9 145.6 147,2 149.1 150.8 151,3 150,3 Mineral fuels.................................. 6.07 128.9 124.3 128.2 135,1 137.1 133.4 131,0 1 30.3 128.7 128.9 131.4 134,3 134.4 133.6 Nonresidential utilities.................. 2.86 183.2 181.0 181,1 182.1 182.5 183,8 187,9 188.5 188.3 193.4 194 4 193.6 194.6 Electricity.................................... 2.32 185.7 183.2 183.4 184.6 185.1 186,6 191.6 192.2 191,8 197.7 199.0 198.3 199,2 General industrial.................. 1.03 182.7 180,5 180.6 182.9 183.9 185.5 186.6 187.7 188.0 192.0 193.0 191.8 195'4 Commercial and other........... 1.21 196.8 193,7 194.1 194.5 194.5 196.1 204,9 205.3 204. 1 212.0 213.8 213,4 212.1 .......... Gas.............................................. 54 Supplementary groups of consumer goods Automotive and home goods........... 7.80 159.0 153.3 154.3 156.4 162.5 155.0 157.7 163.2 169.0 167,0 167.9 173,1 169.5 173,8 Apparel and staples....................... 24.51 145.0 143.7 144.6 144,1 144.2 144,4 144,8 145.9 147.6 146,2 148.1 142.9 148.1 .......... For footnotes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INDUSTRIAL PRODUCTION: S.A. A-57 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1967 1968 Grouping pro. 1967 por­ aver­ tion age ^ May June July Aug. Sept. Oct. Nov, Dec. Jan. Feb. Mar.r Apr.r May Total index................................... 100 00 158.0 155.6 155.6 156.6 158,1 156.8 156.9 159.5 162.0 161.2 162.0 163,0 162. 5 164.1 Manufacturing, total........................... 86.45 159.6 157.2 157.0 157.6 159.4 158.1 158.3 161.1 164.0 162.7 163.6 164.6 163. 7 165.8 Durable...................................... 48 07 163 8 162 2 161.5 162,5 163.6 161.1 160.7 164.1 168.1 167.2 167.6 168.2 167 2 169 6 Nondurable,..................... 38 38 154.4 151.1 151.4 151’5 154.0 154,2 155.2 157.2 158,9 157.1 1 58.6 160.0 159 3 160,8 Mining....................................... 8 23 123.5 120.2 123.8 128.0 127.8 124,3 122.4 123.6 122.3 121.6 1 23.9 126 2 128 5 1 26.9 Utilities............................................... 5.32 184.4 183,1 183.7 184.6 185.4 185.6 188.7 191 .5 192.6 195.9 197.5 196.8 195.8 195,9 Durable manufactures Primary and fabricated metals.......... 12.32 145.4 142.8 142.9 142.8 142.3 141.8 143.3 145.8 150,3 148.3 150.8 151.7 151.2 155 7 Primary metals.................................. 6 95 132.5 128.9 129.0 129.6 129.3 129.2 131.7 135.0 140 9 (36.3 139,3 140.2 141.3 148*2 Iron and steel................................ 5.45 126.8 122.9 121.2 122,3 124.3 125,6 127.7 133.3 140.9 134 2 1 37 8 140,8 143.0 145 7 Nonferrous metals and products.. 1.50 153.1 154.4 156.4 155.3 144.2 141.1 142.8 142.2 145.3 145.6 154.1 151 .3 154.5 162^2 Fabricated metal products................ 5.37 162.0 160.8 160,8 159 8 159.1 158.1 158.2 159.8 162 4 163.9 165 7 166 6 1 61 3 165 4 Structural metal parts................... 2.86 158.1 156.4 156.9 156.1 156,8 156.0 156.4 158.8 160 0 159.4 1 60 9 162.7 1 56'9 160 1 Machinery and related products........ 27.98 777.6 176.5 175.5 177.5 179.6 175.0 173.4 177.8 181.7 181.6 181.5 182.3 179.2 181.3 Machinery......................................... 14.80 183.4 180.5 177.5 180.0 182.8 182.2 179.6 183.2 182,2 183.4 183 2 183.3 179 4 179 6 Nonelectrical machinery......... 8.43 183.4 181.7 181,3 182.2 182.6 182.1 177.2 180.9 179.5 180.7 180.6 180.2 176 9 176 7 Electrical machinery...................... 6,37 183.3 178.9 172.4 177,1 183.2 182.4 182.8 186.3 185 8 186.9 186 6 187 3 182 8 183 5 Transportation equipment.............. > 10.19 166.0 167.5 169.3 170 8 171.9 1 59.2 159.2 165.6 177.5 175.6 175 I 177.6 175.3 180 2 Motor vehicles and parts.............. 4.68 147.0 152.0 154.5 156.7 158.0 129.4 128.6 141.4 166,9 162,2 161.1 167 8 164 9 172 9 Aircraft and other equipment. . .. 5.26 182.2 181.4 181.8 182.6 183.6 184.3 185.2 186.0 186.3 186.8 186,5 185,4 183.5 I85i6 Instruments and related products. .. 1.71 184.8 185.3 184.1 182.9 183.2 183.1 183.2 185.4 186.3 186.7 184.7 183.8 181.4 181.6 Ordnance and accessories................. 1.28 Clay, glass, and lumber......... 4.72 130.6 127 8 126.7 127.3 126.7 129.6 131.4 132.4 137.0 132.5 / 10 7 1 >8 8 138 7 137 0 Clayi glass, and stone products........ 2.99 138'. 7 134'. 8 133.5 134.1 136,9 138.4 139.7 139.2 143.6 140.8 137‘.3 131.0 147‘6 147.0 Lumber and products ........................ 1.73 116 5 115.6 114.9 115 5 109.2 114 3 117.0 120.6 125 7 118.1 119 3 1 25 0 1 23 3 1 72 1 Furniture and miscellaneous............... 3.05 162.6 162,3 161.5 159,1 159.9 161,4 160.9 161.5 163 3 165.2 166 9 166 9 166 5 16H ^ Furniture and fixtures....................... 1.54 167.8 166.5 166.3 162.7 164.8 166. 3 167.8 170*7 171.3 1730 173 7 174 1 1 76 0 Miscellaneous manufactures........ 1.51 157.4 158.1 156.7 155.4 154,9 156.4 155.0 155.1 155.7 158.9 160,7 159.9 158,8 160^3 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.6 135.3 134.8 135.3 137.6 139.1 140.4 143.0 145.9 141.0 141 9 143 9 142.8 144 () Textile mill products......................... 2 90 142 2 137 8 136.6 136 8 138.7 141 3 144.9 147.4 151 6 147.6 1 48 8 1 49 9 146 6 147'6 Apparel products......................... 3.59 147.7 142.6 142.4 144.2 146.4 146^8 146.2 148.6 150 9 145,2 146 4 1 48 5 148'6 Leather and products........................ 1.11 106.5 105.0 105.4 103.0 106.5 108.4 109.7 113.3 115.1 1 10.4 109 7 113 7 1 14 0 Paper and printing............................ 8.17 149.6 149. i 149.4 148.6 150.3 148.5 148.6 149.9 149 5 148.6 150 6 152 0 151 5 1514 Paper and products........................... 3.43 153.6 151.4 151.6 149 0 152.8 152 9 154.5 156.1 157 0 155.9 157 1 1592 159 4 Printing and publishing............ 4 74 146.8 147.4 147 8 148 3 148,6 145.4 144.3 145.5 144 1 143.3 145 9 146 8 1 45 8 1 48 3 Newspapers................................... 1 53 134.2 133 I 134.3 136.1 137.0 135 7 134.0 1 34.4 129 9 129,9 111 4 1317 I 30 8 1144 Chemicals, petroleum, and rubber.... 11.54 189.5 182.2 183.0 184.0 189.5 191.2 192.8 195.8 199.0 197.7 200.2 201.6 200.4 202.9 Chemicals and products.................. 7 58 203 8 199 6 199.9 201 0 200.7 202 3 205.5 208.0 210 5 211 8 213 8 715 0 214 6 2'6 2 Industrial chemicals....................... 3.84 234.8 228.8 227,5 227.6 231.4 234.2 238.8 242.3 246,9 250.9 251.8 252’7 256 4 Petroleum products........................... I 97 133 9 132 1 134.4 132 8 131.2 137 0 137.6 136.8 1 38 0 I 34 8 1 35 7 1 36 1 1 37 1 1 18 6 Rubber and plastics products........... 1 ^99 190.3 165^7 166.9 170.1 203.1 202.4 199.1 207.5 215^4 206.7 212 3 215 7 209 4 Foods, beverages, and tobacco.......... 11.07 131 5 130 9 131.3 130.9 131.0 130 4 131.1 132.2 133 1 132.0 Hi 1 ! 11 7 /II 5 111 7 Foods and beverages........................ 10.25 132.4 132 0 131.9 131 5 131.7 1312 1 32.2 133.5 1 34 1 133 5 Hl'? 114 5 135 7 134 8 Food manufactures........................ 8.64 130 1 1303 129 9 129 4 129.0 128 9 129.3 130.2 130 5 130 7 I 10 7 1114 1118 1 32 7 Beverages.................................. ! 61 144.7 141 2 142.9 142.8 146,3 143 8 147.5 151.2 153.3 148.2 [46 7 1 5 1 7 153 1 Tobacco products.............................. .82 120.0 117.4 123.9 123.6 121.4 120^2 118.0 115.5 120,5 114.4 iizi i 122^9 1 I 2i 1 Mining Coal, oil. and gas............................. 6 80 122.4 118 0 121.7 128.0 128.8 125 4 123. 7 124.5 127 2 121.9 /2i 2 126 0 126 1 125 5 Coal................................................... 1 16 118 1 120' 1 122.5 122 6 117.2 115 5 112.3 115.3 116 1 1 13.4 I 16 8 1 26 0 1 24'4 120 4 Crude oil and natural gas.......... 5 64 123 2 117 5 121.6 129.1 131.2 127 5 126.1 126.4 123 5 123.6 124 5 i 26 0 126 7 126 6 Oil and gas extraction........... 491 131 4 1253 129.5 138 0 141.9 137 7 135.4 133.9 1317 132.5 114 8 1 36 2 116 8 116 7 Crude oil......................... 4 25 126 4 119 6 123.6 133.9 138.0 133 1 130,3 128.7 126,4 127 4 I 29 7 130 9 111 3 131 7 Gas and gas liquids................... ^66 163^3 1613 167.3 Oil and gas drilling........................ .73 67.9 65.5 67.7 69.0 58.9 58 5 63.4 76.1 68,0 63.5 55 0 56 7 59 1 Metal, stone, and earth minerals....... 1.43 128.8 130.8 133.6 127.7 123.4 119.1 116.2 119.5 122.7 120.3 127.0 127.4 138.9 133.7 Metal mining................................... 61 119 9 132 $ 133 S 119 1 105 " 05 6 93 8 93 2 95 7 100 c 102 8 108 7 141 3 1 32 3 Stone and earth minerals.................. .82 135.'4 129 ,'2 133.3 133.7 136,6 136*5 132,9 139.'0 142,7 135.3 145 io 1 41 2 1 371 134 8 Utilities Electric............................................. 4 04 191.7 189.7 190.3 191.4 192.1 192.1 195.8 199.4 200,8 205.2 207,3 206.4 204.9 Gas...................................................... 1.28 161.2 162.4 163,1 163,3 164.1 165. 1 166,5 166.6 166,8 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

M-UO muuoiniML rrxuuuu i iuin. in.o.k. u jult i^oo MARKET GROUPINGS (1957-59 ~ 100) 1957-59 1967 1968 pro­ 1967 Grouping por­ aver­ tion age^ May June July Aug. Sept. Oct. Nov. Dec. Jan, | Feb. Mar.’ Apr.r May Total index ,.............................. 100.00 158.0 156,0 159,0 150.5 157.9 161.1 161.5 161.2 160.7 159.1 162,7 1 64,6 1 63.4 164,8 Final products, total.................... 47.35 158.3 155.2 159.8 151.2 156.9 163.3 162.2 161.3 161,0 159.1 <62.4 164.8 160, 9 162.8 Consumer goods............................ 32.31 148,4 144,2 150.5 139.9 147.7 155.7 155.4 152.0 iso:.. 148.9 153.4 156.2 151,7 154.0 Equipment, including defense.. . . 15.04 179.6 179,0 180.0 175.3 176.4 179.5 176.8 181.3 183.9 181.0 181.7 183,4 180,4 181.5 Materials............................... 52.65 157,7 156.6 158.3 150.0 158.9 159. 1 160.8 161.1 160,4 159.1 162,8 1 64. 5 165.7 167.0 Consumer goods Automotive products........................... 3.21 149.1 155.1 162.5 114.2 106.1 148.2 155.6 159.5 >77. 7 173.0 171.2 183. 7 178.6 189.8 AutOS. 1.82 145.7 166.4 177.] 94.8 62.2 140. 1 148.8 159.0 192,6 179 5 173.8 193.4 183.5 202.4 Auto parts and allied products. .... 1.39 153.6 140.3 143.2 139.8 163,9 158,8 164.6 160,0 158.1 164.5 167.9 170.8 172, 3 173.3 Home goods and apparel......... 10.00 149.9 144.0 148.6 132.7 149.0 155.0 159.6 157.8 148.0 145 5 159.0 160.6 154.7 153.2 Home goods.................................... 4.59 166.0 159,8 161.6 145.9 159.3 172,0 180, 1 180.3 172.6 164?) 177.2 177.1 172. 5 171.4 Appliances, TV, and radios.......... 1 .81 159.5 152.0 152.8 128,0 140.4 165.1 182.2 181 4 1 60.6 159,1 180.9 176.9 168.7 1 63.5 Appliances,........................ 1.33 163,1 159,7 169.9 141.8 134.5 160.4 180. 1 178,2 163.4 168,7 187.9 185.3 180 3 167. 7 TV and home radios................. .47 149,2 130.5 104.6 89.3 157.2 178.2 187.8 190.4 152.7 131.9 161.1 153.1 135.9 15 1.7 Furniture and rugs......................... 1.26 159,6 151.2 155.4 148,8 160.5 1 63.8 168,0 169.4 172.7 162,7 167.2 167.9 165 3 167.8 Miscellaneous home goods............ 1.52 179.0 176.0 177.3 164,8 180.6 187.1 187,7 187.9 186.7 173,8 181.2 184.8 183.0 183.8 Apparel knit goods, and shoes........ 5.41 136.2 130.6 137.6 121,5 140.2 140.5 142.3 138.8 127.2 1 29 0 143.5 146.6 1 19.6 (lonsumer staples................................ 19.10 147.5 142.4 149.4 148,0 154.1 157.4 153.2 147.7 146.9 146.7 147.4 149.2 !45. 7 148.6 Processed foods,............................... 8.43 130.0 122.5 128.9 128.4 137.1 149.7 143.7 134.4 128,2 123.0 122.1 1 23.8 122 7 126.0 Beverages and tobacco............. 2.43 136.4 143.0 156.2 142,8 149,3 139.3 141,6 131 9 1 23.1 120. 1 129.8 1 38 5 141 0 Drugs, soap, and toiletries......... 2.97 183.0 180.7 189.1 179,4 183.9 1 85.2 186.0 184.0 185.2 182 9 185 9 1 89 4 184 6 189.5 Newspapers' magazines, and books. 1.47 140,1 142.1 140.8 140.7 142,6 137.4 134.7 133.9 138.2 137’2 140,9 144.2 142.7 144.8 Consumer fuel and lighting. ............ 3.67 168,3 156.2 163.2 173.7 176.7 172.3 1 62.5 163 9 177.8 192 2 187.6 183 2 169,8 Fuel oil and gasoline..................... 1.20 132.5 126.2 134.3 133.6 134.5 138.5 134.5 134,6 141.0 137^5 139.1 134.9 131.0 135.9 Residential utilities........................ 2.46 185.7 Electricity.................................... 1.72 199.8 178.8 187.5 210.4 215.7 203.5 185,3 188.0 213.0 244,1 232.8 226. 4 200.4 Gas.............................................. .74 Equipment Rusiness equipment •........................... 11.63 182,9 183.2 184,2 177.4 178.0 181.1 177.3 182,2 184.9 182,1 183,0 185. 7 182. 7 183.5 Industrial equipment.......... 6.85 170.3 169.3 170.7 167.3 166,3 168.1 161.3 168.9 170 8 166.7 165.0 1 67 2 1 65 9 165.6 Commercial equipment................... . 2.42 200.9 198,4 201.1 198.3 201.9 203.3 202.4 205.9 209.2 204.4 204.7 203.6 200 5 201.2 Freight and passenger equipment. .. 1.76 215.4 218.1 217,3 202,8 205.5 212,5 215. 1 218.4 226. 1 221.9 230.1 238.1 233.0 238.1 Farm equipment............................... .61 158.7 178.0 173.3 134.9 135.S 148.6 147.9 132.6 128.0 151.0 162.6 170,4 156.7 Defense equipment.............................. 3.41 Materials Durable goods materials............ 26.73 152.1 152.5 154.3 145.0 152.5 152.0 152.6 153.7 154.3 151.7 156. / 157. 7 158 7 162.1 Consumer durable........................... 3.43 144.6 148.0 146.2 123.4 147.0 133.6 1 35.3 148.1 167.4 168 0 164.6 164.9 159.2 168.1 Equipment............................... 7.84 184.5 182.2 181.4 175.6 180.7 182.9 183,5 186,2 187,7 185 6 188.4 1 87 1 183.9 184.9 Construction....................................... 9.17 140.1 139.2 146.9 143.6 148.7 148.4 147,0 142.0 135.3 1 29 0 1 34 7 139,2 142 7 1 46.9 Metal materials n.e.c........................ 6.29 133.5 137.2 135,6 120,5 126.0 128.9 131.7 133.3 133.2 133 7 142 7 144 1 150.4 152.7 Nondurable materials......................... 25.92 163.4 160.9 162.4 155.2 165.4 166.4 169.3 168.7 166.7 166.7 169.7 171.5 177 8 172.0 Business supplies..................... 9.11 152.2 152.6 154.0 141.5 151.9 154,9 158,6 155.3 151.6 149 0 150.6 1 52 9 156’7 157.3 Containers................................ 3.03 148.5 147.7 153.1 138.2 153.0 155 5 161.5 148.3 141 4 1 46 6 142 8 1 41 5 157.7 1 56.6 General business supplies........ 6.07 154.1 155.0 154.4 143.1 151.3 154.5 1 57.2 158,9 156,8 150^2 1544 157,6 156,2 157.6 Nondurable materials n.e.c............... 7.40 201.8 198.9 199,6 184.6 198.9 203.0 210.9 21 3 5 211.8 212 4 218 2 220,0 221 7 219.8 Business fuel and power................... 9.41 144.0 139.0 141.9 145.3 152.1 148.7 146,9 146.3 145,8 147.9 150.1 151.2 150 1 1 48.6 Mineral fuels....»......................... 6.07 128.9 124.3 125.2 128.1 135.5 131.9 131.5 131.5 130.3 130 9 135.6 137.2 136. 1 133.7 Nonresidential utilities.................. 2.86 183.2 Electricity.................................... 2.32 185.7 178.2 187,S 193.9 201.8 197.2 190.2 186.3 187 8 194.4 190 8 191 8 189.8 General industrial.................. 1.03 182.7 181.4 184.2 182.0 1 89.4 188.3 187.0 187.7 186. 1 191,0 187 0 190 8 19? 9 Commercial and other....... 1.21 196.8 183.4 198,9 213,0 221.7 214.1 202,0 194.0 198.0 206.7 203.1 201 .’9 196.2 Gas............................................. .54 Supplementary groups of consumer goods Automotive and home goods............ 7.80 159.0 157.8 162.0 132.9 137,4 162.2 170.0 171.7 174.7 168.3 174.7 179,8 175 0 179.0 Apparel and staples......................... 24.51 145,0 139.8 146.8 142.2 151.1 153’7 150.8 145.7 142.5 142,8 146.6 148.7 144 3 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INDUSTRIAL PRODUCTION: N.S.A. A-59 INDUSTRY GROUPINGS (1957-59« 100) 1957-59 1967 1968 Grouping pro­ 1967 por­ aver­ tion age^ May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r A pr.r May Total index..................................... 100.00 158.0 156.0 159,0 150.5 157,9 161.1 161.5 161 .2 160.7 159.1 162.7 164.6 1 63.4 164.8 Manufacturing, total.......................... 86.45 159.6 158.1 161.0 150.5 158.3 162.6 163.7 163,5 162.6 160.1 164.2 166.4 165.2 167.0 Durable......................................... 48.07 163.8 164.1 165.6 154,7 158.9 163.8 164,4 167,1 169.3 166,1 168.9 170,5 169.4 171.8 Nondurable..................................... 38.38 154.4 150.6 155.3 145,1 157.4 161.2 162.9 159.0 154,2 152,5 158.3 161.2 1 59.9 160.9 Mining................................................ 8.23 123,5 121.8 123.9 124,8 129,0 125.6 124.7 124.2 121.4 120,2 123.7 125.3 1 28.8 128.6 Utilities............................................... 5.32 184.4 Durable manufactures Primary and fabricated metals.......... 12.32 145.4 145.0 145.3 !3S.l 142.2 145.1 146.0 147.9 149 3 147.8 152.9 154.9 154.7 158.3 Primary metals.................................. 6.95 132,5 133.4 130,9 117.9 125.4 129,2 133.0 136.3 136.7 138.3 147.2 148.9 151,5 153.4 Iron and steel................................. 5.45 126.8 125,4 121.2 U 1.9 120,6 125.6 1 29.6 134,6 137.4 136.9 144.7 147.8 148.7 148.6 Nonferrous metals and products.. 1.50 153.1 162.6 166.1 139.8 142,8 142.1 145,5 142,2 134.3 143,1 156.4 153.0 1 61 .3 170.8 Fabricated metal products................ 5.37 162.0 160.0 164.0 157.4 163.9 165.7 162.9 163.0 165.6 1 60.0 1 60.2 1 62.6 158,9 1 64.6 Structural metal parts................... 2.86 158.1 154,8 160.0 156.1 160.7 162.2 161.1 161,2 161,6 156,2 154.5 156.4 152.2 159.3 Machinery and related products........ 27.98 177.6 178.8 179.8 166.9 169.1 175.8 176.2 180.8 185. 7 182.9 184.4 185.9 182.0 184.0 Machinery........................................... 14.80 183.4 182.5 182.2 173.7 177.2 182.6 181 .4 185.2 184.1 182.7 185,6 185.8 182.4 181.5 Nonelectrical machinery................ 8.43 183.4 186,2 186.4 177.6 175.8 179.7 174,0 179.8 180.8 180.7 183.1 185.2 182.2 181 J Electrical machinery..................... 6.37 183.3 177,6 176,7 168.5 178.9 186.4 191.3 192.3 188.3 185.3 188.8 186,6 182.6 182.1 Transportation equipment................ 10.19 166.0 171,4 174.0 151.4 150.8 160.8 163.6 170,5 185.0 180,4 179.8 183.9 179.0 185.3 Motor vehicles and parts........ 4.68 147.0 160,4 165,2 119.5 I 16.0 134,0 137.2 149,1 176. 1 171,1 1 68.6 178,1 171.4 184.1 Aircraft and other equipment. .. . 5.26 182.2 180.7 180.9 178.2 180.3 183.6 186,1 188.8 192,8 188.7 189.3 188.2 184.4 184.9 Instruments and related products... 1.71 184.8 183,4 185.9 181.1 184.7 185.1 185.2 186.9 188.5 184.5 183,8 182,9 178.7 179.8 Ordnance and accessories................ 1,28 Clay, glass, and lumber..................... 4.72 130.6 130.0 136.7 133.5 139.1 138.7 139.2 133.9 125.6 119.0 122.2 124.8 138.3 139.4 Clay, glass, and stone products........ 2.99 138.7 138,3 144.6 143.9 149.5 146.3 147.4 143,4 134.6 1 26.7 125.6 126.4 147.0 149.4 Lumber and products....................... 1.73 116.5 1 15.6 122.9 115.5 121.2 125.7 125.2 117.6 1 10,0 105.7 1 16,3 121.9 123.3 122, 1 Furniture and miscellaneous............... 3.05 162.6 158.6 161.8 154.8 164.5 167.4 169.4 169.3 167.3 158.7 162. 9 163.8 162.2 164.3 Furniture and fixtures....................... 1.54 167.8 161.5 166.0 160.3 169.4 171.3 172.9 172.5 177.2 167.9 171,3 171.6 1 69.4 170.7 Miscellaneous manufactures............. 1.51 157.4 155.7 157.5 149.2 159.5 163.4 165,8 166,0 157.3 149.4 154,3 155.9 154.8 157.9 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.6 135.2 139.2 121.9 142.0 142.6 146.9 144.7 136.2 137.9 149.7 152.4 145.7 144.7 Textile mill products......................... 2.90 142.2 141.9 140.7 124.2 142,2 144,1 152,1 151,1 144,0 146,9 152.5 155. 1 1 49,5 152.0 Apparel products............................... 3.59 147.7 141,2 148.8 129.1 150.8 151.6 153,5 150.1 138.8 139.4 157.4 160.4 153.1 Leather and products........................ 1.11 106.5 98.7 104.3 92.7 113.4 1 10.0 112.4 111,0 107.4 109.8 117.3 1 19.4 I 11 .7 .......... Paper and printing............................. 8.17 149.6 150.2 150.8 139.7 149.0 150.5 156.3 !53.1 146.1 146.3 151.2 155.4 155.9 155.4 Paper and products........................... 3.43 153.6 152.2 156.1 137.1 154.3 155.2 166.5 156,9 144.4 155.1 161 .0 1 64.0 165.8 Printing and publishing..................... 4.74 146.8 148.7 147,1 141.6 145.2 147.2 149.0 150.3 147.3 139.9 144.2 149.2 148.8 151.1 Newspapers................................... 1.53 134.2 141.9 135,0 118.4 125.4 135.0 143.8 147.8 133.1 1 19.5 126,1 137.0 1 39.3 143.3 Chemicals, petroleum, and rubber.... 11.54 189.5 183.6 188.5 177.5 190.8 194,7 197.2 196.4 197.6 195.1 201.9 203. 7 203.8 204.3 Chemicals and products........... 7.58 203.8 201,8 205,6 194.6 202.3 206. 1 209.0 210.0 211.2 208.2 215,4 217.7 219.4 218.3 Industrial chemicals....................... 3.84 234.8 231,1 230.9 219.6 230.2 237.7 243,6 248.4 251.8 247. 1 255.6 255.2 261.6 Petroleum products........................... 1.97 133.9 130,8 138.4 139.8 140.3 142.5 139.0 135.0 134.7 130,8 133,0 131.3 131.6 137.2 Rubber and plastics products........... 1.99 190,3 166.5 172,7 149,7 197.0 203.0 210.0 205.4 207.9 208.8 218.7 222,4 215.9 Foods, beverages, and tobacco........... 11.07 131.5 127.1 135.0 131.3 139.5 146.9 143.1 134.1 127.3 122.7 124.2 127.2 126.8 130.9 Foods and beverages......................... 10.25 132.4 127.6 135,2 133. 1 140. 1 148.6 144.2 135.4 129.7 123.5 123.6 127.7 128.0 131.4 Food manufactures. ..................... 8.64 130. 1 122,6 129,0 128, 1 136.7 149.0 143.5 1 34.8 128,5 123.5 122.6 124,0 122.8 1 26. 1 Beverages........................................ 1.61 144.7 153.9 168.1 159.7 158.4 146.7 148.2 139.1 135.7 1 23.6 129. 1 147,4 155.8 Tobacco products.............................. .82 120.0 121.6 132.6 109.4 131.4 124,9 128.5 117.8 98.1 1 1 3. 1 131.4 121.1 1 1 1 .9 .......... Mining Coal, oil, and gas............................... 6.80 122.4 117.8 118,9 121.9 127.7 124.4 124.4 125.6 123.6 123.8 126.9 128.2 127.5 125.3 Coal.................................................... 1.16 118.1 121.3 116.5 99.9 123.3 122.2 122.4 120.0 114.0 111.) 118.2 127.0 125.3 121.6 Crude oil and natural gas................. 5.64 123.2 117,0 119,4 126.4 128.6 124.9 124.8 126.7 125.6 126.4 128,7 128.5 128.0 1 26. 1 Oil and gas extraction................... 4.91 131.4 125.0 127.2 134,8 138.3 134.1 133.7 134.3 134.1 135.6 139.8 139.5 138.6 1 36.5 Crude oil..................................... 4.25 126.4 120.2 122.4 131.2 135.2 130.4 129.0 128.7 127.7 129.3 133.6 133.5 133.4 132.4 Gas and gas liquids................... .66 163.3 155,7 157.9 Oil and gas drilling....................... .73 67.9 63.3 66.3 69.5 62.fi 62.1 65.0 75.7 67.9 64.5 54.2 53.7 56.0 Metal, stone, and earth minerals..... 1.43 128.8 140,9 147.6 139.1 135.3 131,4 126.3 117.6 Hl.2 103.2 108.4 111.6 134.7 144.0 Metal mining..................................... .61 1 19.9 146.2 151.3 128.1 114.2 108,0 100.4 86.7 86.1 88.0 92.5 96.7 131,4 145.5 Stone and earth minerals.................. .82 135.4 136.9 144.9 147.2 150.9 148.8 145.5 140.4 129.9 114.5 120.2 122.6 137.1 142.9 Utilities Electric................................................ 4.04 (91.7 178.4 187.5 200.9 207.7 199.9 188.1 187.0 198.5 215.6 208.7 206.6 194.3 Gas..................................................... 1.28 161.2 Note.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

H—OU DUOlIKdd MUHVIIT; UUlNdlKUbl IUIN u JULY 1^00 SELECTED BUSINESS INDEXES (1957-59= 100, unless otherwise noted) Industrial production Manu­ Prices 4 facturing 2 Ca­ pacity N onag- Major market groupings utiliza­ Con­ ricul- Major industry tion struc­ tural Total Period groupings ratio tion em­ retail Whole­ Final products in mfg. con­ ploy­ Em­ sales 3 sale Total Mate­ ( c p e e n r t ) tract T m o e ta n l t — i p m lo e y n - t P ro a l y ls ­ s C um on e ­ r m co o m di ­ ty Total s C u o m n e ­ r E m q e u n ip t ­ rials Mfg. M in i g n­ U iti t e il s ­ goods 1951..................... 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94,0 63 91.1 106.1 80.2 76 90.5 96.7 1952..................... 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.0 1953..................... 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954..................... 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955..................... 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956..................... 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100.2 92 94.7 96.2 1957..................... 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83,6 93 100.7 104.7 101.4 97 98.0 99.0 1958..................... 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74 6 102 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 I960..................... 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 H2I.9 '113.5 ’’151.7 148 113,1 105.9 1967*................... 158.0 158.3 148.4 179.6 157,7 159.6 123,5 184.4 85.3 153 r125.7 ’’113.5 r 155.0 153 116.3 106.1 1 967 May......... 155.6 156.3 146.0 178.5 154.6 157.2 120.2 183. 1 585.0 154 r125.0 d 12.9 ’•151.9 151 115.6 105.8 June......... 155.6 156.8 146.9 178.1 154.9 157,0 123,8 183.7 164 ’’125.3 ’’112.9 H52.5 155 116.0 106.3 July.......... 156.6 157.1 147.1 178.4 156.1 157.6 128.0 184.6 149 r125.5 M 12.4 r152.2 155 116.5 106.5 Aug.......... 158,1 158.2 148.6 178.9 157.9 159.4 127.8 185.4 • 84.3 165 r 126.0 ’’113.2 r155.9 155 116.9 106.1 Sept...... 156.8 157.0 147.0 178.6 156.7 158.1 124.3 185.6 168 ’125.9 ’112.1 CSS.4 156 117.1 106.2 Oct....... 156.9 156.9 147.9 176.1 157.4 158.3 122.4 188.7 171 r126.2 ••112.2 rl55.2 153 117.5 106.1 Nov.......... 159.5 160.0 150.1 181,1 159.5 161.1 123.6 191.5 84.7 168 r127.1 rl13.8 ’158.9 154 117.8 106.2 162.0 161.9 152.8 181 .5 162.2 164.0 122.3 192.6 166 ’127.7 ’114.3 ’161.2 155 118,2 106.8 1968—Jan....... 161.2 160.8 151.3 181.4 161.7 162.7 121,6 195.9 ’166 C27.7 ’’114.2 H6I.2 158 118.6 107.2 Feb........... 162.0 162.0 152.9 181.6 161.8 163.6 123.9 197.5 *84.9 r 152 r128.7 ’I 14.0 ’’162.8 160 1 19.0 108.0 Mar.......... 163.0 163.5 155.0 181.8 162.8 164.6 126.2 196.8 H69 •’128.8 H 14.2 ’163.8 164 119. 5 108.2 Apr.......... 162.5 161.7 153.3 179.8 163.4 163.7 128.5 195.8 r164 ’I29.0 ’114.6 ’’161.4 r162 119.9 108.3 May.......... 164.1 163.1 155.1 180.2 164.9 165.8 126.9 195.9 *84.5 172 ’129.1 114.6 H66.1 H64 120.3 108.5 June*........ 164.4 163.9 155.7 181.5 164.9 166. 1 128.3 196.0 129.2 114.9 167.4 164 108.7 i Employees only; excludes personnel in the armed forces, value of total construction contracts, including residential, nonresidential, 2 Production workers only. and heavy engineering; does not include data for Alaska and Hawaii. J F.R. index based on Census Bureau figures. Employment and payrolls: Based on Bureau of Labor Statistics data; 4 Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. 5 Figure is for first quarter 1967. Prices: Bureau of Labor Statistics data. Note.—Data are seasonally adjusted unless otherwise noted. Capacity utilization: Based on data from Federal Reserve, McGraw- Construction contracts: F. W. Dodge Co. monthly index of dollar Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS (In millions of dollars) 1967 1968 Type of ownership and type of construction 1966 1967 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total construction 1......................... 50,150 52,895 r5,270 5,414 4,879 5,104 4,695 5,053 4,258 3,996 3,714 3,704 5,417 4,878 6,170 By type of ownership: Public........................................ 18,152 19,039 1.820 2,169 1,989 1,824 1,677 1,526 1,435 1,507 1,300 1,041 1 ,698 1 ,554 31,998 33;856 '3,450 3 >45 2,890 3 >80 3^018 3*527 2,823 2 >90 2>14 2,664 3'719 3 >24 By type of construction: Residential building 1................... 17,827 19,536’’2,177 2,000 1,829 1,912 1,741 1 ,887 1 ,717 1,404 1,462 1,495 2,220 2,312 2,543 Nonresidential building............... 19,393 20,139 1,808 2,070 1,749 1,847 1,786 1 ,874 1,585 1,550 1,347 1 ,251 1,835 1,522 2,227 Nonbuilding................................. 12,930 13,220 1,285 1,344 1,302 1 ,345 1,169 1 ,292 956 1,042 905 958 1 ,362 1,044 1,400 1 Because of improved collection procedures, data for 1-family homes Note.-—Dollar value of total contracts as reported by the F. W. Dodge beginning Jan. 1968 are not strictly comparable with those for earlier Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made to proximately 3 per cent for total and private construction, in each case accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ CONSTRUCTION A-61 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d N f e r a e n o r s t m n i i ­ a ­ l Total In tr d i u al s­ B m u C i e o l r d m c i i n a ­ g l s b O u t i h l e d r ­ Other Total M tar il y i­ H w ig ay h­ d C v e m o v a n & t e e i s n l o e o t n r p ­ ­ Other 2 ings 1 1959 3........................... 55,305 39,235 24,251 14,984 2,106 3,930 2,823 6,125 16,070 1,465 5,761 1,121 7,723 1960............................. 53,941 38,078 21,706 16,372 2,851 4,180 3,118 6,223 15,863 1,366 5,437 1,175 7,885 1961.............................. 55,447 38,299 21,680 16,619 2,780 4,674 3’280 5 >85 171148 1,371 5,854 1,384 8’539 19624........................... 59'667 41,798 24,292 17,506 2,842 5,144 3,631 5,889 17,869 11266 6,365 1 >24 8,714 19635............................ 63,423 44,057 26,187 17,870 2,906 4,995 3,745 6,224 19,366 1,189 7,084 1,690 9,403 1964.............................. 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1.729 10,590 1965.............................. 71,912 49 >40 26,266 23,574 5,128 6,745 4,711 6,990 22,072 852 7,554 2,017 11i 649 1966............................. 74,371 50’446 23’815 261631 6,703 6,890 5,014 8,024 23,925 713 8'359 2,173 12',680 1967 ........................... ’’75,054 49',583 23,579 26,004 6,151 6'991 4,966 7,896 ’•25,471 705 (967—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 J une.................. 72,374 48,052 22,885 25,167 5,886 6,683 <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 >93 Aug.................... 74,392 50,170 24^619 25,551 6,011 6,437 51189 7,914 24,222 715 8,029 2,035 13'443 Sept................... 76,908 51,726 25,306 26,420 6,577 6,731 5,082 8,030 25,182 696 8,290 2,043 14.153 Oct.................... 77,533 52’195 25,971 26,224 6,240 6,991 5,037 7,956 25,338 751 8 199 2'097 14,291 Nov............ 78,438 52,622 26,602 26,020 5,592 7,234 5,203 7,991 25,816 750 8,015 2,225 14 >26 Dec........... '80,031 52’,358 26',90 3 25,455 5,870 6,683 4,891 8,011 r27,673 931 19^8—Jan..................... r82,562 54,546 26,918 27,628 6,260 7,865 5,426 8,077 '28,016 816 '84 J 46 55 080 27’034 28,046 5,825 8,513 5,463 8,245 r2<066 895 Mar................... '83 >41 54,855 27’409 27 346 5,543 8,249 5'385 8,269 '•28,386 738 83 J5I 54'756 27,879 26,877 5,315 8,406 5,003 8,153 28'395 697 May^................ 83,588 54,873 28'641 26 >32 5,092 8,032 4,857 8,251 28,715 i Includes religious, educational, hospital, institutional, and other build­ 5 Beginning 1963, reflects inclusion of new series under “Public” (for ings. , State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in "Other.” 3 Beginning with 1959, includes data for Alaska and Hawaii. 4 Beginning July 1962, reflects inclusion of new series affecting most * Nori-.—Monthly data are at seasonally adjusted annual rates. Figures private nonresidential groups. for period shown are Census Bureau estimates. NEW HOUSING STARTS (In thousands of units) By area By type of ownership Annual rate, (priv S at . e A . o nly) Private G un o d v e e r r w nm rit e t n en t- Period Total Non­ Total N fa o rm n­ M po e li t t r a o n ­ 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 1959............................. 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 I960............................. 1,296 889 407 1,252 995 44 213 44 336 261 75 1961............................. 1,365 948 417 1,313 974 44 295 52 328 244 83 1962............................. 1,492 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.............................. 1,562 1,093 470 1,529 972 54 505 32 264 205 59 1965,......................... G5io 1,035 475 1 ,473 964 51 458 37 246 197 49 1966.............................. 1,196 808 388 1,165 779 35 351 31 195 158 37 1067.................................. 1 ',322 920 402 1,292 844 41 406 30 232 180 53 1967--May.......... 1,274 1,254 134 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 I 20 15 5 Aug................... 1,407 1,381 130 90 40 127 84 4 40 3 23 17 6 Sept................... 1,445 1,415 126 88 37 122 78 4 40 4 20 16 5 Oct,........... 1,496 1,478 137 99 38 135 82 5 49 2 25 19 5 Nov.............. 1,590 1 ,567 120 85 35 H8 69 3 46 2 20 15 4 Dec................... 1,250 I ,235 83 64 20 80 47 3 30 3 19 16 4 1968--Jan................ 1,456 1 ,430 83 64 19 81 45 3 33 2 17 14 3 Feb.................... 1 ,537 1 ,499 87 62 26 85 55 3 26 3 21 17 4 Mar........... 1 ,511 1,479 129 92 37 127 79 4 43 2 24 20 5 Apr................... J’l '586 i’l ,557 /*I65 118 47 **I6L 98 4 60 /'3 28 23 5 May.................. >’l .331 7’1,312 7’142 100 42 7'137 85 4 48 "4 26 20 6 Note.—Census Bureau series for period shown except in the case of and Veterans Admin, and represent units started, based on field office Government-underwritten data which are from Federal Housing Admin. reports of first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

M—OZ tlVirLUYIVItlN I u JULY iyoo LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Total non- Total Unemploy­ Period institutional l N ab o o t r i n f o t r h c e e labor Employed1 m ra e te n 2 t population force N.S.A. N.S.A. S.A. Total Unem­ (per cent) In nonagri- ployed S.A. Total cultural agric I u n l ture 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 77378 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 I9673-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 1’847 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 52,865 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 75,577 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 Feb.............. 134,744 53,876 82,138 78.672 75,731 71,604 4,127 2,941 3.7 Mar............... 134,904 53,965 82,150 78,658 75'802 71 ,788 4,014 2,856 3.6 Apr................ 135,059 53,919 81,849 78,343 75,636 71,656 3,980 2,707 3.5 May......... 135,249 53,479 82,149 78,613 75,829 71,936 3.893 2,784 3.5 June............... 135 ,'440 50,986 82,585 79,018 76^48 72 J 97 3,851 2,970 3.8 i 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. t 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) Contract Transporta­ Period Total Manufac­ Mining construc­ tion & pub­ Trade Finance Service Govern­ turing tion lic utilities ment 1962....... ,............... 55,596 16,853 650 2,902 3.906 11.566 2,800 8,028 8,890 1963......................................................... 56,702 16,995 635 2.963 3,903 11.778 2’877 8.325 9,225 1964......................................................... 58'332 17,274 634 3,050 3.951 12.160 2,957 8.709 9,596 1965......................................................... 60,832 18,062 632 3.186 4,036 12.716 3,023 9.087 10,091 1966......................................................... 64,034 19'214 627 3,275 4,151 13,245 3,100 9.551 10,871 1967......................................................... 66,030 19’434 616 3*203 4,271 13’613 3,217 10,060 1 I,616 SEASONALLY ADJUSTED 1967—June............................................. 65,821 19,356 621 3,131 4,276 13,573 3,214 10,032 I I,618 July............................................... 65,920 19^288 626 3.168 4.296 13'610 3,223 10,056 11,653 Aug.......................... 66,186 19’407 610 3,165 4,288 13'648 3,241 10,110 I 1 ,717 Sept.............................................. 66 J 23 19’285 606 3 J 82 4’278 13,684 3,251 10,139 11,698 Oct................. 66,286 19,302 603 3184 4,267 13’729 3’261 10,171 11 ,769 Nov....................................... 66,778 19’518 603 3'214 4,297 13,791 3,273 10,270 11 .812 Dec............................................... 67,060 19'593 603 3'275 4.302 13.793 3,289 10.316 11,889 1968—Jan................................................ 67,058 19,612 604 3,107 4,317 13,818 3,291 10,331 11,978 Feb.............................................. 67,600 19/12 608 3,388 4,342 13'920 3,304 10,405 12,021 Mar..................... 67,656 19 607 609 3^330 4,332 13/999 3,31 1 10,415 12,053 Apr............................................... 67,755 19,657 632 3^313 4,331 14'009 3,323 10’402 12.088 May7’ ........................................... 67^781 19,685 631 3,248 4,283 14,039 3.333 10,423 12,139 67,863 19,725 627 3,169 4,320 14,048 3.337 10,460 12,177 NOT SEASONALLY ADJUSTED 1967—-June............................................. 66,490 19,475 636 3,341 4,314 13,624 3,243 10,193 11,664 July............................................... 66,097 19^248 640 3,475 4,343 13,605 3,278 10,237 11,271 Aug......................... 66,391 19’535 624 3,519 4,339 13,610 3.293 10,231 11,240 Sept.............................................. 66,656 19,546 613 3,440 4,329 13'672 3,261 10,180 11,615 Oct......................................... 66'858 19'491 605 3,391 4,293 13,757 3,254 10.191 11,876 Nov.............................................. 67’397 19’660 605 3,307 4,3(8 14,017 3,260 10,2(9 12,011 Dec.............................................. 67,903 19’609 602 3,134 4,311 14,618 3,269 10.223 12;137 1968—Jan.......................................... 66,017 19,398 590 2,771 4,252 13,602 3,252 10,124 12,028 Feb............................................... 66^393 19,425 591 2,893 4,264 13,585 3,271 10,228 12,136 66'713 19’447 594 2,967 4,276 13,658 3,288 10,290 I2’.l93 Apr. ........................... 67’422 19^507 626 3,157 4,296 13’910 3,310 10,402 12,214 May7’.................................... 67,716 19’563 631 3,258 4,270 13,950 3,326 10,486 12,232 June7'............................................ 68,544 19,843 642 3,381 4,359 14,101 3.367 10.627 12,224 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

JULY 1968 □ EMPLOYMENT AND EARNINGS A-63 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (tn thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1967 1968 1967 1968 June Apr. May" June'' June Apr. May" June'' Total................................................................................ 14,222 14,439 14,441 14,475 14.322 14,303 14,347 14,574 Durable goods................................................................. 8,307 8,406 8,398 8.401 8,403 8.388 8,397 8,497 Ordnance and accessories...................................... 175 192 193 197 17J 192 192 195 Lumber and wood products................................... 516 520 5 16 513 539 510 515 536 Furniture and fixtures............................................ 371 387 389 387 371 382 383 387 Stone, clay, and glass products............................. 497 517 515 516 510 513 516 529 Primary metal industries........................................ I ,052 1 ,054 1 .054 1 .041 1 ,076 1 ,062 1 ,064 1 ,065 Fabricated metal products..................................... I ,054 1 ,059 1,061 1 ,067 i ,065 I .052 I ,057 1 ,078 Machinery....................................................... 1,369 I ,332 1,329 1,330 1,382 1 ,343 1 ,334 1,342 Electrical equipment and supplies...................... . 1 ,272 1 ,310 1,311 1,314 1,269 1 ,295 1 ,293 1 ,3)2 Transportation equipment..................................... 1,385 1 ,425 1 .417 1,424 1 .398 1 ,438 1 ,435 1 ,437 Instruments and related products......................... 279 275 276 275 280 274 274 275 Miscellaneous manufacturing industries............... 337 3.15 337 337 340 327 334 341 Nondurable goods............................................................ 5,915 6,033 6,043 6,074 5.919 5,915 5,950 6,077 Food and kindred products................................... 1,197 1,191 1,185 1,188 1,182 1 .1 10 1 ,122 1 .174 Tobacco manufactures........................................ 74 68 73 72 64 59 63 63 Textile-mill products,............................................. 844 868 87! 876 854 865 870 885 Apparel and related products.............................. 1,238 I ,251 1 ,256 1 ,265 ( ,244 1 ,237 1 .246 1 ,270 Paper and allied products...................................... 530 536 537 539 536 531 533 545 Printing, publishing, and allied industries............ 662 663 664 667 663 663 663 667 Chemicals and allied products............................... 590 602 602 603 593 609 606 607 Petroleum refining and related industries............. 114 J 17 117 118 117 115 117 120 Rubber and misc. plastic products....................... 364 426 427 435 362 422 424 433 Leather and leather products................................. 302 311 311 311 304 304 306 313 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 June Apr. May'' June’* June Apr. May’* June” June Apr. May" June" Total.......4..0....4.........4..0....1..........4..0....9..........4..0....9........1..1..4.49 118.21 122.29 123,30 2.82 2.97 2.99 3.00 Durable goods.....................;.............................. 41.0 40,7 41.5 41.7 122.89 127.58 132.29 133,34 2.99 3.15 3.18 3.19 Ordnance and accessories........................... 41.0 40.9 41.6 42.2 128.74 130.33 133.95 136,73 3.14 3.21 3.22 3.24 Lumber and wood products...................... 40. 1 40,1 40.4 40.5 96.63 100.90 103.63 104.96 2.38 2.51 2.54 2.56 Furniture and fixtures.............................. 40.3 40.0 41 .1 41.0 93.09 95.26 99.63 101.27 2.31 2.43 2.46 2.47 Stone, clay, and glass products................. 41.4 41 .7 41.9 41.9 117.46 123.85 126.18 126.90 2.81 2.97 2.99 3.00 Primary metal industries........................... 40.7 42.3 42.0 42. 1 136.12 150,52 148.54 149.67 3.32 3.55 3.52 3.53 Fabricated metal products........................ 41.3 40.4 41.7 41.9 123.26 124.62 131.99 133.04 2.97 3.10 3.15 3.16 Machinery................................................... 42.1 41 .0 42.0 42.0 134.51 135.71 141.37 141.79 3.18 3.31 3.35 3.36 Electrical equipment and supplies............. 40.1 39.5 40,2 40.3 HI. 48 112.61 116.58 117.68 2.78 2.88 2.90 2.92 Transportation equipment......................... 41 .4 41.1 42.9 43.1 141.17 146.16 157.81 158.18 3.41 3.60 3.67 3.67 Instruments and related products............. 41.1 39.6 40,5 40.6 117.42 115.44 119.88 120.88 2.85 2,93 2.96 2.97 Miscellaneous manufacturing industries... 39.5 38,5 39.7 39.7 92.43 95.12 98.75 99.65 2.34 2.49 2.50 2.51 Nondurable goods............................................... 39,6 39.2 39.8 40.0 101.63 104.76 108.26 109.47 2.56 2.70 2.72 2.73 Food and kindred products....................... 41 .0 40.4 40.7 41.0 108.50 HO.09 H3.68 H5.49 2.64 2.78 2.80 2.81 Tobacco manufactures............................... 39.1 34. 1 38.0 37.3 94.80 87.30 98,51 98.02 2.40 2.56 2.62 2.60 Textile-mill products........................... 40.5 40.6 41.2 41 .4 82.82 86.22 89.40 90.91 2.03 2.15 2,17 2.18 Apparel and related products.................... 35.8 35.0 36.3 36.4 72.52 76.08 79.50 80. 30 2.02 2.18 2.19 2.20 Paper and allied products, ................... 42.7 42,0 43.0 43.0 122.41 123.97 129.13 130.16 2.86 2.98 3.01 3.02 Printing, publishing, and allied industries. 38.3 37,8 38.1 38.3 124.86 128.22 131.83 133.28 3.26 3.41 3.46 3.48 Chemicals and allied products................... 41 .4 41.4 41.6 41.7 128.65 134.60 135.43 136.69 3.10 3.22 3.24 3.27 Petroleum refining and related industries . 42.6 42.7 42.7 42.8 152.72 162.54 160.39 160.33 3.56 3.78 3.73 3.72 Rubber and misc. plastic products............ 41.2 40.3 41.7 41.6 J 09.03 113.32 120.64 120.93 2.64 2.84 2.90 2.90 Leather and leather products..................... 38.0 38.1 38.8 38.5 79.28 81 .92 85.86 86.91 2.07 2.22 2.23 2.24 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

M~UH- TFAIOCO M JULI l^UO CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em U s Food Total Rent H ow s o h n m ip e e r - ­ F c a o o u n i a e l d l l t e r a G i l n c e a i d c s t ­ y o n F p i t a n i i e n u o s g h r d n r s a ­ ­ ­ u A p p a k p n e a d e r p el T p t r o i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s P c o a e n r r a e ­ l r R e t a i c i e n n o r a g e d n d a ­ ­ g O s i a 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. 106.7 105.1 106,0 106.8 107.0 104,0 107.8 102.4 104,8 107.8 111,4 117.0 107.9 111.5 107.1 1964. 108.1 106.4 107.2 107.8 109.1 103.5 107,9 102.8 105.7 109.3 113,6 119.4 109.2 114.1 108.8 1965. 109.9 108.8 108.5 108.9 111.4 105.6 107,8 103.1 106.8 111.1 115.6 122.3 109.9 115.2 111.4 1966. 113.1 114.2 111.1 110.4 115.7 108.3 108.1 105,0 109.6 112.7 119.0 127.7 112.2 117.1 114.9 1967........................ 116.3 115.2 114.3 112,4 120.2 111.6 108,5 108.2 114.0 115.9 123,8 136.7 115,5 120.1 118.2 1967--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.............. 116.0 115.1 114.1 112.2 119.9 110,5 108.2 108.1 113.9 115,7 123,2 136.3 115.3 119.7 116.9 July............... 116.5 116.0 114.3 112,4 120,2 111.4 108.3 108,2 113.7 116,2 123.6 136.9 115.5 119.8 117,8 Aug.............. 116.9 116.6 114.7 112.6 120.8 111.7 108,5 108,3 113.8 116.4 124.2 137.5 116.1 120.0 118,8 Sept............... 117.1 115.9 115.0 112,8 121.1 112,3 108.9 108.8 115.1 116.8 124,9 138.5 116.4 120.5 119,7 Oct........... 117.5 115.7 115.3 113,0 121.5 112,5 108.9 109,1 116.0 117.7 125.5 139.0 116.5 121.4 120.3 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 1968--Jan................ 118.6 117.0 116.4 113.7 122.9 113,7 108.9 110,6 115.9 118,7 127.1 141.2 117.6 122.7 121.9 Feb................ 119.0 117.4 116.9 113.9 123.5 113,8 109.3 111.2 116,6 118.6 127.5 141.9 117.6 123.0 122,1 Mar............... 119.5 117.9 117,2 114,2 123,8 113.9 109.3 111.8 117,6 119,0 128.3 142.9 118.4 124.2 122.4 Apr............... 119.9 118.3 117.5 114.4 124.0 114.0 109.5 112.2 118.4 119.0 128.8 143.5 119.0 124.9 122.5 May.............. 120.3 118.8 117,8 114.6 124,3 115,3 109.5 112.5 119.5 119. 1 129.2 144.0 119.6 125.3 122,6 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Proc­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ f e f o a e s n o e se d d d d s s Total t T i e l 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 u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s t . , ­ e c M q a e h n r u i y a d n i ­ p ­ ­ F t e u u t r r c e n . , i ­ N t m m a o l i l e n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l s u a ­ s ­ ment erals ment 1958 100.4 103,6 102.5 99.5 98.9 96,0 98.7 100.4 100,1 97.4 100.1 99.1 100.0 100,2 99.9 n.a. 100,6 1959 100.6 97.2 99.9 101.3 100,4 109 1 98.7 100.0 99.7 104.1 101.0 101.2 102.1 100.4 101.2 n.a. 100,8 1960 100,7 96.9 100.0 101.3 101,5 105.2 99.6 100.2 99.9 100,4 101.8 101.3 102.9 100.1 101.4 n.a. 101.7 1961 100.3 96.0 101.6 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100.7 102.9 99.5 101.8 n.a. 102.0 1962. 100.6 97.7 102.7 100.8 100.6 107,4 100.2 97.5 93.3 96.5 100.0 100,0 102.9 98.8 101,8 n.a. 102.4 1963. 100.3 95,7 103.3 100.7 100.5 104,2 99.8 96.3 93.8 98.6 99.2 100,1 103.1 98.1 101.3 n.a. 103.3 1964 100.5 94.3 103.1 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102,8 103.8 98.5 101.5 n.a. 104.1 1965. 102,5 98.4 106.7 102.5 101.8 109.2 98.9 97,4 92.9 101.1 99.9 105.7 105.0 98.0 101.7 n.a. 104.8 1966............................ 105.9 105,6 113.0 104,7 102.1 119.7 101.3 97.8 94, 8 105.6 102.6 108.3 108.2 99,1 102.6 n.a. 106.8 1967. 106.1 99,7 111.7 106,3 102, 1 115,8 103,6 98.4 97.0 105.4 104,0 109,5 111,8 101,0 104.3 n.a. 109.2 1967-—May.................. 105.8 100,7 110.7 106,0 101.6 115.2 104.4 98.8 95.8 104.2 103.9 108.9 111.6 100.8 103.8 n.a. 108,0 June................. 106.3 102.4 112.6 106.0 101.6 115.6 104.0 98.5 95.8 104.7 103.9 108.9 111.6 100.8 103.9 n.a. 109.6 July................... 106,5 102.8 113.1 106.0 101.5 115,2 103,9 98.3 95.8 105.3 104.1 109.0 111.6 100 9 104.2 n.a. 109.7 Aug.................. 106.1 99,2 112.1 106.3 101.7 114.4 104.7 98.0 97.8 106 1 104.0 109.2 111,8 101 0 104.5 n.a. 110,0 Sept................... 106.2 98,4 112.7 106,5 102.0 114.4 104.5 97.9 98.2 108.7 104.1 109,6 111.9 101.2 104.7 n.a. 110,2 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 1968-—Jan................... 107.2 99.0 112.4 107.8 104.3 116.5 101.8 98.2 99,5 108.6 105.2 111.7 113.9 103.0 106.0 n.a. 111.0 Feb................... 108.0 101.3 113.3 108,3 104.6 116,7 102.5 98.1 99.5 111.6 105.7 112,8 114,1 103.3 106,9 n.a. 111.3 Mar................... 108.2 102.1 112.9 108.6 104.6 117.9 102.0 98.6 99,7 H3.9 105.2 H13.8 114,3 103.6 107,3 n.a. 111.5 Apr................... 108.3 102.1 112.8 108.8 104.7 118.3 102.4 98.8 99.7 115.8 105.2 113.3 114.8 103.8 107.4 n.a. 111.8 Way.................. 108,5 103.6 113.6 108.6 104.8 118.8 102.4 98.7 99.8 117.0 105.5 111,7 115,0 104.0 107.8 n.a. 111.8 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ PRICES A-65 WHOLESALE PRICES: DETAIL (1957-59= 100) 1967 1968 1967 1968 Group Group May Mar. Apr. May May Mar. Apr. May Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 104.4 114.5 112.0 123.6 Pulp, paper, and products, excluding Grains.................................................... 98.0 85.1 84.7 86.4 building paper and board,.............. 104.3 105.7 105.7 106.0 Livestock............................................... 102.6 105,7 105.2 105.4 Woodpulp............................................ 98.0 98.0 98.0 98.0 Live poultry........................................... 85.6 81.4 81.1 85.4 Wastepaper.......................................... 77.5 89.0 96.5 98.2 Plant and animal fibers....................... 69.9 76.5 76.1 75.8 Paper.................................................... 109.5 Hl.9 (12.1 1(3.5 Fluid milk............................................. 120.9 123.9 126.5 128.3 Paperboard......................................... 97.3 91.7 91.7 91.7 Eggs...................................................... 74.5 80.9 82.7 72,6 Converted paper and paperboard.... I04.9 107.0 106.5 106,4 Hay and seeds....................................... 117.8 114.1 113.9 114. 1 Building paper and board.................. 9I.7 92,0 92.1 92.3 Other farm products............................. 99.9 101.4 101.6 101.8 Processed foods and feeds: Metals and metal products: Cereal and bakery products................ 117.4 117.4 117.3 117.1 Iron and steel....................................... ’103.1 ’■105,4 ’105.0 104.9 Meat, poultry and fish......................... 103.8 107.0 105.8 107,0 Steelmill products................................ HO5.5 r107.7 r107,7 107,9 Dairy products..................................... 120.8 123.3 125.9 128.9 Nonferrous metals............................... 118,9 ’133,2 r13L0 124.1 Processed fruits and vegetables........... 105.1 114.4 114.6 114.6 Metal containers................................. 111.7 113,4 116.9 116,9 Sugar and confectionery...................... 112.0 113.7 114,0 114.2 Hardware........................................ 112.9 116.8 116.6 116.7 Beverages and beverage materials.... 106.0 108,9 109.5 109.4 Plumbing equipment........................... 110.7 114.3 114.6 114.6 Animal fats and oils............................. 89.5 72,5 71.9 66.6 Heating equipment............................. 92.0 94.3 94.5 94.7 Crude vegetable oils............................. 93.9 90.4 88,8 92.7 Fabricated structural metal products. 105.1 106.8 107.1 106,7 Refined vegetable oils.......................... 96,6 98.7 93.0 98.9 Miscellaneous metal products............ 113.7 I 15.3 115.5 115,5 Vegetable oil end products.................. 101.6 100.2 100.2 100.2 Miscellaneous processed foods............ 112.4 114.1 114.0 113,9 Manufactured animal feeds................. 118.7 118,9 117.1 1(7.8 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 121.8 126,1 126.2 126.3 Construction machinery and equip... 121.9 128.3 128.9 129.4 Cotton products................................... 100.3 105,0 105.2 104.9 Metalworking machinery and equip.. 123.6 127.3 127.6 128.0 Wool products...................................... 103. 1 103. 1 103.0 103,5 General purpose machinery and Man-made fiber textile products. .. .. 86.3 89.3 89.3 89.7 equipment......................................... 1(3.2 H6.5 1(6.8 117.0 Silk yarns.............................................. 167.0 196.3 189,7 183.8 Special industry machinery and Apparel.*........................................... 106.3 109.1 109.3 109.4 equipment (Jan. 1961= 100)........... 116.1 120,2 121.6 (21.8 Textile housefurnishings...................... 105.5 110,9 110,7 1 (0.6 Electrical machinery and equip...... 101.9 102,6 103,0 102.9 Miscellaneous textile products....... 118.5 109.9 110,1 110,1 Miscellaneous machinery................... 108.9 112.7 113,0 114.2 Hides, skins, feather, and products: Furniture and household durables: Hides and skins.................................... 87,2 99.3 95.6 98.2 Leather,.............................................. 1 10.9 110,3 111,5 112.5 Household furniture........................... 112.4 116.0 116.2 116.9 Footwear............................................. 121.4 125.6 126,6 127.0 Commercial furniture......................... 111.9 H4.0 I 14.5 115.1 Other leather products......................... 114.3 112.4 112,5 112.5 Floor coverings................................... 93,1 95,2 95.2 95. 1 Household appliances......................... 89.7 91.9 92.2 92.2 Fuels and related products, and power: Home electronic equipment............... 82.9 81.6 81.8 81.8 Other household durable goods..... 115.8 124.3 124.5 124.5 Coal....................................................... 102.6 105.5 105.4 105.2 Coke............................................................... 112.0 112.0 117.0 117.0 Gas fuels (Jan. 1958=* 100).................. 135.0 126.5 125.0 123.6 Nonmetallic mineral products: Electric power (Jan. 1958= 100)......... 100.6 101.2 101.3 101,3 Crude petroleum.................................. 98.3 99.0 99.0 99.0 Flat glass.............................................. (00.2 109.4 109.4 109,4 Petroleum products, refined ;.............. 103.7 99.5 100.3 100.5 Concrete ingredients........................... 105.9 (08.6 109.0 109,1 Concrete products.............................. (05.2 107.0 107.5 107.6 Chemicals and allied products: Structural clay products excluding refractories....................................... 109,7 112.0 112.1 112.5 Industrial chemicals............................. 97.5 98.7 98.8 99.0 Refractories......................................... 104.9 112.6 112.5 112.5 Prepared paint...................................... 108.8 114.1 114,4 114.4 Asphalt roofing................................... 88.3 98.0 97,6 97.6 Paint materials..................................... 91.0 92.5 92.5 92.4 Gypsum products.............................. 102.3 105.1 105.1 105.1 Drugs and pharmaceuticals................. 94.1 93.4 93.4 93.4 Glass containers.................................. 101 .0 (06.3 106.3 109.7 Fats and oils, inedible......................... 82.9 80.0 80.9 78.4 Other nonmetallic minerals................ 102,1 103.9 103.8 103,7 Agricultural chemicals and products.. 105.2 101.2 101.6 101.6 Plastic resins and materials................. 90.7 82.8 83.2 82.3 Other chemicals and products....... 108.7 109.5 109.8 110,0 Transportation equipment: Rubber and products: Motor vehicles and equipment.......... 101 .6 104.3 104.3 104.2 Railroad equipment (Jan. 1961= 100). 102.9 105.4 105.4 105.4 Crude rubber......................................... 85.9 84.0 84.1 84.5 Tires and tubes..................................... 94.0 98.7 98.7 98.7 Miscellaneous rubber products........... 101.5 106.9 106.9 106.9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms. ammunition..................................... 105.3 107.4 108.1 108.2 Lumber.................................................. 107.0 120,3 123.6 125.3 Tobacco products........................ HO.3 H4.9 114.9 114.9 Millwork.................................................. 111.7 115.6 116.6 117.8 Notions............................................... 100.8 105.7 105.7 108,1 Plywood..................................... 87.5 96,9 97.3 97.3 Photographic equipment and supplies HO. 1 114.8 114.9 113.8 Other wood products (Dec. 1966=* 100) 102.0 105.9 106.1 106.3 Other miscellaneous products.......... 107.4 109.9 110.4 110.6 Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classiincorporate (1) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

H—OO INM11VINML rr\ML>UUH MINU IIN^LHVIL ^ JULI 1 ^UO GROSS NATIONAL PRODUCT (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 I II III IV I" Gross national product..................................... 103.1 55.6 124.5 284.8 590.5 632.4 683.9 743.3 785.0 766.3 775.1 791.2 807.3 826.7 Final purchases.................................................. 101.4 57.2 120,1 278.0 584.6 626,6 674.5 729.9 779.8 759.2 774.6 787.4 798.1 824.0 Personal consumption expenditures................. 'll.! 45.8 80.6 191.0 375.0 401.2 433.1 465.9 491.7 480.2 489.7 495.3 501.8 518.7 Durable goods.............................................. 9.2 3.5 9.6 30.5 53.9 59.2 66.0 70.3 72.1 69.4 72.5 72.7 73.8 78.4 Nondurable goods........................................ 37.7 22.3 42.9 98.1 168.6 178.7 191.2 207.5 217.5 214.2 217.2 218.5 220.3 228.1 Services......................................................... 30.3 20.1 28.1 62.4 152.4 163.3 175.9 188.1 202.1 196.6 200.0 204.1 207.7 212. J Gross private domestic investment................... 16.2 1.4 17.9 54.1 87.1 94.0 107.4 118.0 112.1 110.4 105.1 112.2 120.8 118.0 Fixed investment............................................ 14.5 3.0 13.4 47.3 81.3 88.2 98.0 104.6 107.0 103.3 104.6 108.4 111.6 115.4 Nonresidential........................................... 10.6 2.4 9.5 27,9 54.3 61.1 71.1 80.2 82,6 81.9 81.5 82.8 84.0 87.2 Structures............................................... 5.0 .9 2.9 9,2 19.5 21.2 25.1 22.9 26,8 21.7 26.3 26.6 26.7 28.5 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 34.8 39.9 46.0 52.3 55.7 54.2 55.2 56.2 57.3 58.7 Residential structures............................... 4.0 .6 3.9 19.4 27.0 27.1 27.0 24.4 24.4 21.4 23.1 25.6 27.6 28.2 Nonfarm............................................... 3.8 .5 3.7 18.6 26.4 26.6 26,4 23.8 23.9 20.9 22.5 25.0 27,0 27.6 Change in business inventories.................... 1.7 -1.6 4.5 6.8 5.9 5.8 9.4 13.4 5.2 7.1 0.5 3.8 9.2 2.7 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 5.1 6.4 8.4 13.7 4.8 7.3 0.6 3.4 7.7 1.8 Net exports of goods and services................... 1.1 .4 1.3 1.8 5.9 8.5 6.9 5.1 4.8 5.3 5,3 5.4 3.0 1.7 Exports.......................................................... 7.0 2.4 5.9 13.8 32.3 37.1 39.1 43.0 45.3 45.3 45.1 45.6 45.4 47.2 Imports.......................................................... 5.9 2.0 4.6 12.0 26.4 28.6 32.2 37.9 40.6 39.9 39.8 40.2 42.4 45.5 Government purchases of goods and services. . 8.5 8.0 24.8 37.9 122.5 128.7 136.4 154.3 176.3 170.4 175.0 178.2 181.7 188.3 Federal........................................................... 1.3 2.0 16.9 18.4 64.2 65.2 66.8 77.0 89.9 87.1 89.5 90.9 92.2 96.2 National defense....................................... 13.8 14.1 50.8 50.0 50.1 60.5 72.5 70.2 72.5 73.3 74.2 76.7 Other.......................................................... 3.1 4.3 13.5 15.2 16.7 16.5 17.4 16.8 17.0 17.6 18.0 19.5 State and local.............................................. 7.2 6.0 7.9 19.5 58.2 63.5 69.6 77.2 86.4 83.3 85.4 87.4 89,5 92.1 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 551.0 581.1 616.7 652.6 669.3 660.7 664.7 672.0 679.6 689.7 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) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 I II nr IV If’ National income................................................ 86.8 40.3 104.2 241.1 481.9 518.1 562.4 616.7 650.2 636.4 641.6 653.4 669.3 686.2 Compensation of employees............................. 51.1 29.5 64.8 154.6 341.0 365.7 393.9 435.7 469.7 459.1 463.4 472.6 483.6 497.6 Wages and salaries........................................ 50.4 29.0 62.1 146.8 311.1 333.7 359.1 394.6 423.8 414.7 418.3 426.2 435.9 447.6 Private........................................................ 45.5 23.9 51.9 124.4 251.6 269.4 289.8 316.7 337.5 331.4 333.2 339.4 346.2 355.9 Military...................................................... .3 .3 1.9 5.0 10,8 11.7 12.1 14.7 16.4 16.1 16.2 16.3 17.3 17.6 Government civilian................................. 4.6 4.9 8.3 17.4 48.6 52.6 57.1 63.2 69.8 67.3 68.9 70.6 72.5 74.0 Supplements to wages and salaries.......... .7 .5 2.7 7.8 29.9 32.0 34.9 41.1 45.9 44.4 45.2 46.4 47.6 50.0 Employer contributions for social insurance.................................................. .1 .1 2.0 4.0 15.0 15.4 16.2 20.3 22,6 22.2 22.3 22.8 23.3 24.8 Other labor income................................... .6 .4 .7 3.8 14.9 16.6 18.6 20.8 23.2 22.2 22.9 23.6 24.3 25.2 Proprietors’ income.......................................... 15.1 5.9 17.5 37.5 51.0 52.3 56.7 59.3 58.4 57.8 57.8 58.8 59.3 59.9 Business and professional............................ 9.0 3.3 11.1 24.0 37.9 40.2 41.9 43,2 43.6 43.2 43.4 43.8 44.1 44.4 Farm.............................................................. 6.2 2.6 6.4 13.5 13.1 12.1 14.8 16.1 14.8 14.6 14.3 15.0 15.2 15.5 Rental income of persons................................. 5.4 2.0 3.5 9.4 17.1 18.0 19.0 19.4 20.1 19.8 20.0 20.2 20.4 20,6 Corporate profits and inventory valuation adjustment.................................................... 10.5 -1.2 15.2 37.7 58.9 66.3 74.9 82.2 79.6 78.1 78.3 79.2 82.7 84.2 Profits before tax........................................... 10.0 1.0 17.7 42.6 59.4 66.8 76.6 83.8 80.7 79.0 78.9 80.0 85.1 88.7 Profits tax liability.................................... 1.4 .5 7.6 17.8 26.3 28.3 31.4 34.5 33,2 32.5 32.5 32.9 35.0 36.2 Profits after tax......................................... 8.6 .4 10.1 24.9 33.1 38.4 45.2 49.3 47.5 46.5 46.5 47.1 50.1 52.5 Dividends............................................... 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.5 22.8 22.2 23.1 23.4 21.4 23.2 Undistributed profits............................ 2.8 -1.6 5.7 16.0 16.6 20.6 25.4 27.8 24.7 24.2 23.4 23.6 27.6 29.2 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -.5 -.5 -1.7 -1.6 -1.2 -.8 -.7 -.8 -2.3 -4.5 Net interest........................................................ 4.7 4.1 3.2 2.0 13.8 15.8 17.9 20.2 22.4 21.6 22.1 22.7 23.3 23.9 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

JULY 1968 □ NATIONAL PRODUCT AND INCOME A-67 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME SAVING (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 I II III IV Ip Gruss national product..................................... 103.1 55.6 124.5 284.8 590.5 632.4 683.9 743.3 785.0 766.3 775.1 791.2 807.3 826.7 Less: Capital consumption allowances...... 7.9 7.0 8.2 18.3 52.6 56.1 59.9 63.5 67.0 65.5 66.4 67.6 68.6 69.4 Indirect business tax and nontax Kability................................................. 7.0 7.1 11.3 23.3 54.7 58.4 62.2 65.1 69.7 67.9 69.1 70.2 71.4 73.0 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 -3.0 -4.0 -2.8 -1.2 —3.5 -4.0 Plus: Subsidies less current surplus of goveminent enterprises........................... -.1 . 1 .2 .8 1,3 1.2 2.2 1.7 2.3 2.0 1.6 1.2 .7 Equals: National income.................................. 86.8 40.3 104.2 241.1 481.9 518.1 562.4 616.7 '650.2 636.4 641.6 653.4 669.3 686.2 Less: Corporate profits and inventory valuation adjustment............................... 10.5 -1.2 15.2 37.7 58.9 66.3 74.9 82.2 '79.6 78.1 78.3 79.2 82.7 84.2 Contributions for social insurance.... .2 .3 2.8 6.9 26.9 27.9 29.7 38.2 43.0 42.2 42.5 43.3 44.1 47.4 Excess of wage accruals over disburse- Plus: Government transfer payments........... .9 1.5 2.6 14.3 33.0 34.2 37.2 41.2 49.1 48.1 48.6 49.6 50.1 52.8 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 23.7 23.9 24.2 24.7 25.5 Dividends.............................................. 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.5 22.8 22.2 23.1 23.4 22.4 23.2 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 96.0 227.6 465.5 497.5 537.8 584.0 626.4 612.9 619.1 631.0 642.5 659.0 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 60.9 59.4 65.6 75.2 81.7 80.2 79.1 82.8 84.7 87.5 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 404.6 438.1 472.2 508.8 544.7 532.7 540.0 548.2 557.9 571.5 Less: Personal outlays.................................... 79.1 46.5 81.7 193.9 384.7 411.9 445.0 479.0 505.9 493.9 504.0 509.6 516.2 533.5 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 375.0 401.2 433.1 465.9 491.7 480.2 489.7 495.3 501.8 518.7 Consumer interest payments............ 1.5 .5 .9 2.4 9.1 10.1 11.3 12.4 13.4 13.1 13.3 13.5 13.8 14.1 Personal transfer payments to foreigners.....................................3. .2 .2 .5 .6 .6 .7 .6 .8 .7 1.0 .8 .7 .7 Equals: Personal saving................................. 4.2 -.9 11.0 13.1 19.9 26.2 27.2 29.8 38.7 38.8 36.0 38.5 41.6 38.0 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 381.3 407.9 434.4 456.3 476.5 470.6 474.9 477.5 482.6 490.1 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) 1967 1968 Item 1966 1967 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP Total personal income......................... 584.0 626.4 618.2 622.6 627.0 631.6 634.4 635.9 642.4 649.3 650.9 659.4 666.5 669.8 674.0 Wage and salary disbursements..... . 394.6 423.8 417.2 420.9 423.4 426.7 428.5 429.4 435.3 443.1 442.4 449.0 451.4 452.8 455.7 Commodity-producing industries... 159.3 167.2 164.3 165.2 166.1 168.0 168.2 167.9 171.2 173.3 173.3 176.8 177.4 176.9 178.3 Manufacturing only............ 128.1 134.4 132.2 133.0 133.2 135.3 135,4 134.9 137.5 139.2 139.6 141.5 141.9 141.4 142.8 Distributive industries..................... 93.9 100.9 99.3 100.4 101.3 101.8 102.1 102,6 103,7 103.9 105.1 106.7 107.1 107.7 107.7 Service industries,.................. 63.5 69.5 68.6 69.5 69,6 70.1 70.8 71,1 71.9 72,8 73. 1 73.8 74.5 75.0 75.8 Government............................ 77.9 86.3 85.0 85.7 86,4 86.9 87.4 87,8 88.4 93,1 90.9 91.6 92.4 93.2 93.9 Other labor income............................. 20.8 23.2 22.8 23.1 23.3 23.6 23,8 24.0 24.3 24,6 24.9 25,2 25.5 25.8 26.1 Proprietors’ income............................. 59.3 58.4 57.8 57.9 58 4 58.8 59.2 59.1 59.3 59.5 59.6 59.8 60. 1 60.0 60.1 Business and professional............... 43.2 43.6 43.4 43.6 43.7 43.8 43.9 44.0 44.1 44.2 44.3 44.4 44.5 44.5 44.6 Farm................................................. 16.1 14,8 14.4 14.3 14.7 15.0 15.3 15.1 15.2 15.3 15.3 15,4 15.6 15,5 15.5 Rental income............................... 19.4 20.1 20.0 20.1 20.2 20.2 20.3 20.3 20.4 20.4 20.5 20,5 20.6 20.6 20.7 Dividends............................................. 21.5 22,8 23.1 23.3 23.5 23.5 23.4 23.2 23.1 21.0 22,9 23.2 23.6 24.0 24.4 Personal interest income..................... 42.4 46.5 46.0 46.1 46.4 46.9 47.3 47,6 48.0 48.5 48.9 r49.5 50.1 50.5 50.8 Transfer payments.............................. 43.9 51.9 51.5 51.6 52.2 52.4 52.5 52,8 52.8 53.1 54.0 54.7 58.1 58.8 59.1 Less: Personal contributions for social insurance........................... 17.9 20.4 20.1 20.3 20.4 20.6 20.6 20.6 20.8 21.1 22.3 22.6 22.8 22.7 22.8 Nonagricultural income....................... 563.1 606.5 598.8 603.2 607.2 611.4 614.0 615.7 622.0 628.8 630.3 638.7 645.6 649.1 653.2 Agriculture income........................... 20.9 19.9 19.5 19.4 19.8 20.2 20.4 20.2 20.4 20.5 20.6 20.7 20.9 20.8 20.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-b« HUW Uh hUINUS □ JULY iybb SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1965 1966 1967 Transaction category, or sector 1963 1964 1965 1966 1967 IV I II in IV I n HI IV I. Saving and investment 1 Gross national saving,....................... 144.5 160.3 179,5 193,1 189.0 184.8 190.3 191.3 192.2 198.4 186.2 182.7 188.4 198.5 I 2 3 H Fa o r u m se a h n o d ld n s. o .. n .. c .. o .. r . p .. , . .. b .. u .. s . i . n ... e . s .. s .. . . . . . . . . . . . . . . . 8 1 3 5 . . 5 8 9 1 8 4 . , 3 5 10 15 7 . . 3 3 11 1 5 6 . , 3 0 1 1 2 6 7 . . 8 6 11 1 2 5, . 5 8 11 15 3 . . 7 4 1 1 1 5 1 , . 9 7 1 1 1 6 4 . . 1 8 1 1 2 6 1 . . 3 3 1 1 2 6 3 . . 5 9 12 1 4 6 , . 5 6 12 1 7 6 . . 1 9 1 1 3 7 4 . . 0 7 2 3 4 Corporate nonfin. business...... 43.9 50.5 55.7 60,3 59.9 57.8 58.8 59.2 59.8 63.5 58.6 58.7 59.6 62.6 4 5 6 S U t . a S t , e G an o d v e lo rn ca m l e g n o t v ... t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . — - 1 . . 5 6 - - 1 4 . . 3 4 -2.2 - -. 9 ,8 -1 — 4 4 . . 2 0 - — 2 1 . . 5 5 -1 1 . . 2 1 - 1 .8 .6 - - 1 . . 5 8 - - 4 . . 9 6 -1 -3 3 . . 0 2 -1 -4 6 . . 3 7 -1 -4 4 . . 3 3 -1 -4 2 . . 4 7 5 6 7 Financial sectors........................... 3.5 2.7 3.3 3,3 3.0 2.8 2.6 3.8 3.8 2.8 3.4 4.0 3.5 1.3 7 8 Gross national investment.......... 143.8 158.0 177.1 190.1 185.4 183.7 188.4 188,3 190.0 193.7 181.4 177.0 187.9 195.3 8 9 Consumer durable goods.......... 53.9 59.2 66.0 70.3 72. 1 68.6 71.6 68.2 70.9 70.6 69.4 72.5 72.7 73.8 9 10 Business inventories..................... 5.9 5,8 9.4 13,4 5.2 9.6 9.8 1 4.0 H.4 18.4 7.1 .5 3.8 9.2 10 n 12 Gr H os o s u p se v h t. o l f d ix s e . d .. . i .. n .. v .. e .. s .. t . m ... e .. n .. t .. . . . . . .. . .. . .. . 2 8 2 1. . 3 4 8 2 8 3 . . 2 0 9 2 8 3 . . 0 2 1 2 0 2 4 . . 8 6 1 2 0 0 7 . . 3 0 1 2 0 3 2 . . 6 4 1 2 0 3 5. . 3 9 1 2 0 3 4 . .5 6 1 2 0 2 4 . . 8 9 1 2 0 0 3 . .7 7 10 1 3 8 . . 3 5 1 1 0 9 4 , . 0 6 1 2 0 1 8 . . 0 4 H 22 l . . 7 6 1 1 1 2 13 Nonfinan. business................... 57.9 64.3 74.0 80.8 85.8 78.0 80.4 79.8 81.1 82.0 84.0 84.8 86.3 88.0 13 14 Financial sectors............... 1.0 .9 .9 1.0 .9 .8 1 .0 1.0 1 .0 1.0 .8 .8 1.1 .9 14 15 Net financial investment............... 2.8 4.7 3.7 1.8 1.2 3.1 1.8 1.6 2.8 1 .0 1.6 -.6 2.9 .7 15 16 Discrepancy (1-8).............................. .6 2.3 2.4 3.0 3.6 1.1 1.9 3.0 2.1 4.7 4.9 5.7 .5 3.2 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 58.5 67.0 72.3 69.9 83.1 75.8 84.1 83.2 62.6 49.9 74.3 44.3 104.6 108.9 17 18 Loans and short-term securities.... 19.0 26.4 33.1 27.4 27.2 35.0 26.4 22.7 30,7 29.8 33.8 -16.1 46.8 44.2 18 19 Long-term securities and mtgs...... 39.5 40.6 39.2 42.5 55.9 40 8 57.6 60.5 31.9 20.0 40.6 60 4 57.8 64.7 19 2 2 2 2 2 2 2 2 2 2 3 3 1 6 5 9 2 3 8 1 0 7 0 4 F P U v o . L S S O L S S t r . e e h e . o o t i d c B C O c h o g a G a u o u e r a o n t n n r t m r o h r n n i - s i s e t v b t t k s s . e i . e i r . u . e e e o e s . . r l . s m . r c t s l r o m B . . i n o . . . u r a c e . a . y o a m . . . r n r n . . m i . w n n . . s s t d . . c e . o i . s . e k e . e . n n r . . n . c . m . t e r s . . . t . . t . . f . s e . . . d o . . . i . . . o . . , s . . n . . . r . i . . . . c . . r e . . t . . . . . . . . t . . . . . . c . . . . g . . . . . s . . . . . . . u . . . . . . . e . a . . . . . . . . . r . . . . . . c g . . . . . . . i . . . . . . . . . . t t . e . . . . . . . . o i . . . . . . . . . s . e . . . . . . . . . r . . . . . . . . s . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 1 5 5 2 3 3 2 0 7 4 1 5 1 . . . . . . . . . . . . 0 1 3 7 5 7 6 2 3 2 4 4 5 3 1 7 4 4 8 6 5 3 3 4 6 8 . . . . . . . . . . . . 1 7 1 5 7 7 4 0 5 9 0 0 6 2 3 1 2 3 3 9 6 7 4 1 8 3 . . . . . . . . . . . . 5 0 7 6 4 6 3 6 9 7 2 8 6 2 3 4 6 9 2 2 6 4 7 1 7 1 . . . . . . . . . . . . 1 1 3 0 9 8 2 5 5 9 0 4 6 4 1 1 9 4 2 4 6 6 4 6 8 2 8 1 . 1 . . . . . . . . . . 1 7 4 0 4 4 4 2 5 7 0 3 6 2 3 1 5 8 4 8 5 2 6 3 7 1 4 , . . . . . . . . . . . 5 6 8 8 2 8 4 7 0 9 0 8 — 7 2 4 1 1 9 9 0 2 7 6 3 1 0 2 1 1 . . . . , , . . . . . . 5 3 5 8 7 3 5 6 9 3 4 8 - 7 4 2 1 1 7 6 6 5 2 2 7 3 7 4 5 . . . . . . . . . . . . 3 1 1 5 7 3 9 3 0 8 2 5 - 5 2 3 - 2 — 3 6 4 7 9 7 8 4 . . . , . . . 4 . . . ■ 7 9 8 6 6 0 0 7 4 4 - 4 2 1 7 1 5 2 4 5 9 7 1 1 0 8 . . . . . . . . . . . . 2 1 7 2 6 9 2 0 0 2 0 7 - 6 4 1 1 5 8 9 6 0 4 4 8 1 9 1 . . . . . . . . , . . . 9 5 8 1 0 9 5 6 7 4 4 0 - — 2 6 4 3 1 1 1 1 2 4 1 3 4 5 1 4 1 1 6 . . . . . . . . . . . . 3 7 9 7 5 0 7 9 0 7 9 3 3 6 5 3 1 5 4 3 3 2 3 4 2 6 1 0 3 . . . . . . . . . . . . 1 9 9 8 7 3 9 2 6 0 7 9 7 2 2 5 2 1 4 6 8 2 2 2 9 4 0 4 1 1 . . . . . . , . . . . . 1 9 5 8 8 9 8 4 2 7 4 4 2 2 2 2 2 2 2 2 2 2 3 3 1 1 3 0 2 5 8 9 6 7 0 4 3 3 3 3 4 2 S 1 C - t o a t r t o p e o 4 a r ~ a n f t a d e m l s o i e t c y c a u m l r o o it b r i l e t i g s g . a a .. g . t . i e . o . s . n . . . . s . . . .. . . .. . . . . . .. . . . 1 6 3 5 . . . 6 2 7 1 5 5 5 . . . 4 9 7 1 5 7 6 . . . 4 3 2 1 1 6 1 1 . . . 0 4 0 1 1 1 0 1 7 . . . 1 5 4 1 2 7 6 . . . 8 8 9 1 1 6 2 4 . . . 3 2 2 1 1 6 5 2 . . . 5 5 9 1 4 9 1 . , . 1 6 3 6 6 8 , . . 1 1 6 1 1 8 0 4 . . . 9 3 3 1 1 8 1 5 . . . 3 5 8 2 1 7 1 3 . . . 5 4 7 1 1 1 5 1 8 . . . 1 1 2 3 3 3 3 2 4 3 35 6 Net s O o t u h r e c r e s m o o f r c tg re a d g i e t s. (= .. > .. . l . i . n .. e .. .. 1 .. 7 ... ) . . . . . . . . . 5 9 8 . . 3 5 6 1 7 0 . . 0 0 7 9 2 . . 4 3 6 9 9 , . 6 9 83 9 . • 4 I 7 9 5 . . 2 8 8 1 4 1 . . 1 3 8 U 3 . . 2 2 6 9 2 . . 6 6 4 6 9 . . 2 9 7 7 4 . . 9 3 4 9 4. . 3 3 10 9 4 . . 8 6 10 1 8 0 . . 9 4 3 3 5 6 37 Chg. in U.S. Govt, cash balance.. -.4 .2 -1.0 -.4 1.2 2.1 -3.3 6.7 -6,2 1.2 -.5 -14.8 13.4 6.8 37 38 U.S. Govt, lending.................. 2.7 3.8 4.7 7.9 4.5 4.6 H.l 10.0 7.8 2.8 6.1 -.8 5.0 8.0 38 39 Foreign funds................................ 1.9 2.5 . 8 -.9 5,4 3.6 -1.5 4.4 -5.3 -1.2 1.4 8.3 2.4 9.4 39 40 Pvt. insur. & pension reserves.... 10.1 H.l 11.6 12.8 13.2 H.9 12.8 10,8 13,1 14.5 12.2 12.4 14,0 14.1 40 41 Sources n.e.c.................................. 4.7 5.7 7.2 7.6 5,6 5.3 H.6 6.0 13.9 -1.0 1.6 5.8 11.3 3.7 41 4 43 2 Pv L t. iq d u o i m d e a s s ti s c e t n s o .. n .. f .. i . n .. . . . s .. e .. c .. t . o .. r .. s .. ..... 3 3 7 9. . 5 4 4 3 3 3 . . 8 0 4 4 9 3 . . 0 4 4 2 2 3 . . 8 9 5 4 3 9 . . 1 1 4 43 8 . . 1 4 5 3 3 3 . . 3 3 4 2 5 1 . . 3 8 3 1 9 8 , .5 2 2 3 2 3 . . 1 6 5 5 3 4 . . 5 4 3 3 3 8 . . 3 4 5 5 8 8 . .7 6 4 6 4 7 . . 8 0 4 43 2 44 Deposits .................... 34.4 35.3 40.4 22.7 50.9 42.3 29.1 24.6 15.8 21.2 61.5 51.7 56.2 34.1 44 45 Demand dep. and currency 5,9 6.5 7,7 2.9 12,0 11.9 4.0 1.6 -.5 6.5 10.8 10.6 15.2 11.1 45 46 Time and svgs, accounts... 28.5 28.8 32.7 19.8 39.0 30.4 25.1 23.0 16.4 14,6 50.7 41.0 41.0 23.0 46 47 A t commercial banks.... 13.4 13.0 19.5 12.5 22.4 17.9 15.4 18.1 11.1 5.4 33.8 20.4 23.0 12.3 47 48 A t savings instit........ 15.1 15.8 13.2 7.3 16.6 12.5 9.8 4.9 5.3 9.3 16,9 20.6 18.0 10.7 48 49 Short-term U.S. Govt. sec... 3.0 —2.3 3.0 1.2 -1.8 .8 4.2 -2.9 2.7 .9 -7.1 -13.3 2.5 10.6 49 50 Other U.S. Govt, securities.... 1.7 3.1 .1 6.7 -1.2 2.1 4,8 14.5 3.3 4.3 -11.2 -3.9 -3.3 13.7 50 51 Pvt. credit mkt. instruments... 2.3 7.5 5.8 12.1 7.4 4.6 15,5 10.6 15.6 6.6 9.8 1.4 6.4 12.1 51 52 Less security debt..................... 2.0 - .2 .3 -.2 2.2 1.3 .3 1.5 -1.9 — .6 -.5 2.5 3.1 3.5 52 III. Direct lending in credit markets 53 Total funds raised............................ 58.5 67.0 72.3 69.9 83.1 75.8 84.1 83.2 62.6 49.9 74.3 44.3 104.6 108.9 53 54 Less change in U.S. Govt, cash.... -.3 .2 -1.0 -.4 1.2 2.1 -3.3 6.7 -6.1 1.2 -.6 -14.9 13.4 6.7 54 55 Total net of U.S, Govt. cash....... 58. 8 66.8 73.3 70.3 81.9 73.7 87.3 76.4 68.7 48.7 74.9 59. t 91.2 102.2 55 56 Funds supplied directly to cr. mkts.. 58.8 66.8 73.3 70.3 81.9 73.7 87.3 76.4 68.7 48.7 74.9 59.1 91.2 102.2 56 57 Federal Reserve System............... 2.6 3.2 3.8 3.3 3.9 3.5 2.5 -.1 6.6 4.2 2.9 -.3 7.9 4.5 57 58 Total...............I......................... 2.9 3.4 3.8 3.5 4.8 3.0 2.5 2.1 5.0 4.3 5.2 2.9 3.7 6.9 58 59 Less change in U.S. Govt, cash. .3 .2 * .2 .9 -.5 .1 2.1 -1.6 .1 2.4 3.2 -4.2 2.4 59 60 Commercial banks, net................. 19.7 21.8 29.3 18.0 35.9 32.6 23.0 28.0 14.1 6.8 41.9 40.3 37.2 24.6 60 61 Total.................'........................ 19.4 22.4 29.1 17.5 36.4 35.6 19.9 32.9 9.6 7.9 39,7 22.3 54.8 28.9 61 62 Less chg. in U.S. Govt. cash... -.6 -1.0 -.5 .2 2.6 -3.3 4.6 -4.5 l.l -3.0 -18.1 17.6 4,4 62 63 Security issues........................ .3 .6 .8 . ] 2 .4 J .3 ♦ 8 * 63 64 Nonbank finance, net................... 28.0 29.1 27.0 22.4 32.2 24.3 27.9 16.6 20.9 24.1 28.8 34.8 38.0 27.2 64 65 Total.......................................... 34.4 33.5 32.9 25.7 33.4 33.7 35.7 18.7 21.5 27.0 30.7 19.1 50.9 32.9 65 66 Less credit raised....................... 6.4 4.4 5.9 3. 3 1.2 9.4 7.7 2.0 .7 2.9 1.9 -15.7 12.9 5.7 66 67 U.S. Government......................... 2.7 3.8 4.7 7.9 4.5 4.6 U.1 10.0 7.8 2.8 6.1 — .8 5.0 8.0 67 68 Foreign.......................................... .9 .6 -.1 -1.4 3.2 2.7 -1.3 1.2 -4.1 -1.6 3.3 3.6 .9 5.1 68 69 Pvt. domestic nonfin..................... 5.1 8.5 8.6 20.2 2.2 6.1 24.2 20.7 23.4 12.5 -8.0 -18.4 2.4 32.9 69 70 Households................................ .4 3.2 2.2 10.6 -3.8 -1.0 13.7 15.4 H.l 2.0 -12.9 -18.0 -1.1 16.8 70 71 Business..................................... 3.1 1.5 1.0 3.2 .4 2.1 5.7 1 .4 3.4 2.5 1.2 -5.6 .2 5.9 71 72 State and local govts.......... 3.5 3.7 5.8 6.2 7.8 6.3 5.0 5.4 7.0 7.3 3.2 7.7 6.5 13.7 72 73 Less net security credit............. 2.0 -.2 .3 -.2 2.2 1.3 .3 1.5 -1.9 -.6 - .5 2.5 3.1 3.5 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ FLOW OF FUNDS A-69 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1965 1966 1967 Transaction category, or sector 1963 1964 1965 1966 1967 IV I II HI IV I II III IV I. Demand deposits and currency 1 Net incr. in banking system liability.. 5.8 7.4 7.6 2.6 14.7 15.2 -.3 10.1 -8.0 8.8 8.2 -.9 29.4 21.8 1 2 U.S. Govt, deposits......................... -.3 .2 -1.0 -.4 1.2 2.1 -3.3 6.7 -6.1 1.2 -.6 -14.9 13.4 6.7 2 3 Other................................................ 6.1 7.3 8.6 3.0 13.5 13.1 3.0 3.3 - 1.9 7.6 8.8 14.0 16.0 15.0 3 4 Domestic sectors........................ 6.0 6.8 8.3 3.3 12.7 12.8 2.9 2.1 -.1 8.2 12.0 11.5 15.5 11.5 4 5 Households........................ 4.3 6.4 7.1 1.9 12.4 11.7 -2.2 1.4 .5 8.1 13.6 14.2 7.3 14.5 5 6 Nonfinancial business........... — . 8 -2.1 -1.7 .7 -1.5 .3 2.3 .2 1.5 - 1.3 -4.1 -3.9 4.2 -2.5 6 7 State and local govts............... 2.4 1.2 -.2 .8 .3 -2.1 2.7 1.3 -.7 -.1 3.3 * 1.0 -2.9 7 8 Financial sectors..................... .2 .3 .7 .4 .7 .9 -1.1 .5 .5 1.6 1.3 .9 .4 .4 8 9 Mail float......................... -.1 .9 2.5 -.5 .8 2.0 1.2 -1.3 -1.8 -.2 -2.0 .4 2.6 2.1 9 10 Rest of the world........................ .1 .5 .3 -.3 .8 .3 .1 1.2 -1.8 -.6 -3.2 2.4 .5 3.5 10 II. Timo and savings accounts 11 Net increase—Total............................ 29.5 30.4 33.0 20.3 40.8 30.8 24.6 24.5 16.7 15.S 52.3 45.4 42.0 23.5 11 12 At commercial banks—Total..... 14.3 14.5 20.0 13.3 23.8 18.1 15.1 20.1 11.6 6.2 35.1 23.7 23.7 12.7 12 13 Corporate business...................... 3.9 3.2 3.9 — .7 4.1 ,9 4.1 1.7 -3.9 -4.6 10.0 -.9 3.7 3.7 13 14 State and local govts................... 1.6 1 .7 2.4 1.3 2.4 3.1 -.4 2.1 1.9 1.5 5.7 3.4 .6 14 15 Foreign depositors................. 1.0 1.4 . 6 .8 1.3 .5 -.2 2.0 .6 1.0 1 .2 2.3 1.1 .8 15 16 Households................................. 7.9 8.2 13.3 11.9 15.8 13.8 11.6 14.3 13.0 8.5 18.0 17.9 18.7 8.5 16 17 At savings institutions.................... 15.2 15.9 13.0 7.1 17.0 12.7 9.5 4.4 5.1 9.3 17.2 21.7 18.3 10.7 17 18 Memo: Households total,................. 23.0 23.9 26.5 19.2 32.4 26.3 21.4 19.2 18.3 17.8 35.0 38.6 36.7 19.2 18 III. U.S. Govt, securities 19 Total net issues.................................... 5.0 7.1 3.6 6.3 12.7 8.5 10.8 6.7 4.9 2.9 8.0 -21.3 34.7 29.2 19 20 ShorMerm marketable.......... 1.4 4.0 3.5 2.2 6.4 5.4 -1.5 -7.3 7.6 10. 1 9.9 -35.7 30.9 20.7 20 21 Other............................................. 3.6 3.0 .2 4.1 6.2 3.2 12.3 14.1 -2.7 -7.2 -1.9 14.5 3.9 8.5 21 22 Net acquisitions, by sector............. 5.9 7.1 3.6 6.3 12.7 8.5 10.8 6.7 4.9 2.9 8.0 -21.3 34.7 29.2 22 23 Federal Reserve System................. 2.8 3.5 3.7 3.5 4.8 2.3 2.8 1.7 5.7 3.8 5,5 2.8 3.6 6.9 23 24 Short-term................................... 4.9 2.1 3.7 5.4 1.9 -3.4 2.8 -.3 6.7 12.4 — . 1 -4.2 2.3 9.3 24 25 Commercial banks......................... -2.6 .4 -2.3 -3.4 8.8 1.4 -2.7 -.3 -5.7 -4.8 17.9 -.3 23.6 -5.9 25 26 Short-term marketable............... -3.5 3.9 -1.7 -4.5 4.6 4.6 -10.2 -.5 -2.8 -4.4 10.2 -7.2 18.3 -2.7 26 27 Other direct................................ .5 -4.1 — 1.4 1.2 1.4 -3.7 7.6 -2.3 -.3 -.3 5.5 2.4 2.8 -5.2 27 28 Nonguaranteed........................... .3 .6 .8 2.8 .4 2.6 -2.6 -.1 2.2 4.4 2.5 2.1 28 29 Nonbank finance............................. -.5 2.0 -.8 .9 -.3 4.0 -4.6 3.4 .8 .2 -8.5 9.6 -1.4 29 30 Short-term marketable......... -1.3 1.2 -.4 1.5 1.0 1.5 3.2 -2.6 3.8 1.4 4.6 -10.7 10.6 -.4 30 31 Other direct................................. .6 .5 -.7 -1.0 -1.5 -1.6 -.2 -2.4 -.5 -.9 -5.2 .9 -.7 -1.1 31 32 Nonguaranteed........................... .3 .3 .3 .4 .5 -.2 .9 .4 .1 .4 .8 1.4 -.3 32 33 Foreign.......................................... .6 .5 —. 1 -2.6 2.1 2.2 -2.3 -1.6 -4.4 -2.1 2.6 1.9 -1.4 5.2 33 34 Short-term................................... -.6 .1 -.4 —. 8 1.6 2.6 -1.2 -.3 -2.4 .7 3.1 .7 -2.1 4.8 34 35 Pvt. domestic nonfinan. sector.... 4.7 .8 3.1 7.9 -3.0 2.8 9.0 11.6 6.0 5.2 -18.2 -17.2 -.8 24.4 35 36 Short-term marketable............... 1.8 -3.2 2.4 .7 -2.7 * 3.8 -3.5 2.3 -7.9 -14.4 1.8 9.7 36 37 Other direct......................... 1.0 2.8 -1.2 2.1 -1.6 1.4 .7 .2 1.8 5.8 -9.6 -3.0 -1.8 8.1 37 38 Nonguaranteed............................ .7 .4 1.3 4.6 .4 .7 4.1 14.3 1.5 -1.4 -1.5 -.9 -1.5 5.6 38 39 Savings bonds—Households.... 1.2 .9 .6 .6 .9 .8 .3 .7 .3 .9 .8 1.1 .7 .9 39 IV. Other securities 40 Total net issues, by sector................. 13.1 14.6 16.2 18.7 29.6 14.8 21.7 23.4 17.2 12.5 28.1 28.1 31.4 30.8 40 41 State and local govts....................... 6.7 5.9 7.3 6.0 10.1 7.8 6.3 6.9 4.6 6.1 10,3 11.5 7.5 11.2 41 42 Nonfinancial corporations.............. 3.6 5.4 5.4 11.4 17.4 2.8 12.2 15.5 11.3 6.6 14,3 15.8 21.4 18.1 42 43 Commercial banks......................... .3 .6 .8 .1 .2 .4 .1 .3 * ♦ .8 .1 43 44 Finance companies........................ 1.4 2.1 1.9 .8 .6 3.0 1.7 .5 1.2 -.4 1.7 -.3 1.0 .i 44 45 Rest of the world............................ 1.1 .7 .8 .5 1.3 .8 1.4 .2 .2 1.0 1.0 1.6 1.4 45 46 Net purchases...................................... 13.1 14.6 16.2 18.7 29.6 14.8 21.7 23.4 17.2 12.5 28.1 28.1 31.4 30.8 46 47 Households...................................... -2.9 1.5 3.1 -2.4 -2.4 7.4 4.7 3.6 -3.4 -3.8 -6.4 -.7 1.5 47 48 Nonfinancial corporations........ .9 .2 .7 .8 .7 .8 .8 .8 .7 .8 .7 .7 .8 .7 48 49 State and local govts....................... 2.5 2.8 2.8 4.1 6.0 3.4 3.5 2.4 5.6 5.0 7.0 6.9 4.8 5.5 49 50 Commercial banks......................... 5.2 3.7 5.0 2.4 9.8 4.9 2.9 7.6 -.1 -.7 9.6 14.5 4.8 10.3 50 51 Insurance and pension funds......... 7.6 7.5 9.5 9.5 13.5 9.9 11.6 8.3 9.5 8.6 13.9 11.0 14.6 14.4 51 52 Finance n.e.c................................... -.2 -.8 -1.6 -2.3 -1.3 -1.7 -5.4 -2.3 -2.9 1.3 -2.1 -3.0 1,9 -2.1 52 53 Security brokers and dealers.... .2 ♦ -.1 .1 * -2,8 -.3 1.0 2.6 -1.9 -2.9 2.5 2.5 53 54 Investment cos., net.................... -.5 -.8 -1.5 -2.5 -1.4 -1.7 —2.6 -2.1 -4.0 -1.3 -.2 -.6 -4.5 54 55 Portfolio purchases................. .8 1.1 1.6 1.3 1.6 2.1 3.0 .8 -1.1 2.5 3.0 1.3 3.1 -1.1 55 56 Net issues’ of own shares..... 1.2 1.9 3.0 3.8 2.9 3.8 5.6 2.9 2.9 3.8 3.2 1.4 3.7 3.4 56 57 Rest of the world........................... .3 -.1 -.4 .9 1.0 .2 .7 2.1 .4 .4 .5 1.3 2.2 * 57 V. Mortgages 58 Total net lending................................. 25.0 25.3 25.5 19.6 21.9 26.0 25.7 22.6 17.0 13.2 17.3 19.0 24.8 26.3 58 59 1- to 4-family.................................. 15.7 15.4 16.1 10.0 12.5 16.8 14.4 11.4 7.4 6.9 9.4 9.7 15.0 16.0 59 60 In process.................................... .5 -.3 ♦ -.9 1.0 -.1 .3 -1.1 -1.7 -1.2 .5 1.4 1.3 .9 60 6t Disbursed.................................... 15.2 15.7 16.2 11.0 11.5 16.9 14.2 12.5 9.1 8. 1 8.9 8.3 13.7 15.1 61 62 Other............................................. 9.3 10.0 9.4 9.6 9.4 9.2 11.3 11.2 9.6 6.2 7.9 9.3 9.8 10.4 62 63 Net acquisitions................................. 25.0 25.3 25.5 19.6 21.9 26.0 25.7 22.6 17.0 13.2 17.3 19.0 24.8 26,3 63 64 Households...................................... -.3 — . 2 -.9 -.4 -.6 -.3 -2.3 -.2 .6 .5 -.5 -1.7 -.4 .2 64 65 U.S. Government........................... -1.0 .2 1.0 3.4 2.7 1.6 4.4 4.1 3.1 1.8 2.4 1.6 3.1 3.7 65 66 Commercial banks.......................... 4.9 4.5 5.6 4.6 4.6 5.8 5.4 5.3 4.3 3.6 2.0 3.5 6.0 6.7 66 67 Savings institutions......................... 16.1 14.8 13.1 6.6 10.8 12.7 11.5 7.3 3.7 3.7 6.8 10.3 13.1 12.9 67 68 Insurance......................................... 4.0 5.1 5.5 5.1 3.1 5.4 5.7 5.9 5.3 3.6 5.2 2.9 2.0 2.3 68 69 Mortgage companies...................... .8 .4 .5 -.6 .4 . 1 .3 -.6 -.9 -1.1 .3 1.3 -.2 .1 69 VI. Bank loans n.e.c. 70 Total net borrowing............................. 7.6 8.7 16.4 8.2 6.5 17.1 9.7 16.0 5.2 2.0 1.7 7.7 6.7 9.8 70 71 Nonfinancial business..................... 5.0 5.1 12.2 9.9 7.4 12.4 10.1 15.2 9.6 4.7 5.8 11.0 2.0 10.8 71 72 Nonbank finance............................. 1.7 .5 2.4 -1.4 -2.4 3.5 .6 -.1 -3.5 -2.7 -4.3 -3.3 2.1 -4.0 72 73 Households...................................... .4 1.4 1.3 -.1 1.7 1.6 -.6 .3 -.7 .5 .9 .7 1.7 3.5 73 74 Rest of the world............................ .5 1.7 .4 -.2 -.3 -.4 -.4 .5 -.3 -.5 -.6 -.8 .8 -.5 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

H—/U U.d. DHLHINUt UT rHYIVICINI^ u JULY 1^00 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1966 1967’' 1968 Item I965r I966r 1967' IV’ 1 11 in IV Ip 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—Total1...................... 39,196 43,142 45,756 11,059 11,371 11,377 11,513 11,496 11,867 Merchandise........................................................... 26,244 29,176 30,468 7,440 7,661 7,703 7,626 7,478 7,924 Military sales...................................................... 830 829 1 ,240 205 335 336 245 323 306 Transportation....................................................... 2,413 2,608 2,701 657 670 670 680 681 70! Travel....................................................................... 1,380 1,590 I ,646 411 421 384 417 424 452 Investment income receipts, private...................... 5,384 5,659 6,235 1 ,499 1,443 1,391 1,671 1 ,729 1,563 Investment income receipts, Govt........................ 509 593 624 149 151 165 156 153 198 Other services.......................................................... 2,436 2,687 2,843 698 690 728 718 708 723 Imports of goods and services—Total.................. -32,295 -38,063 -40,989 -9,929 -10,078 “10,108 -10,154 -10,648 -11,493 Merchandise........................................................... -21,516 -25,541 -26,991 -6,675 -6,686 -6,605 -6,541 -7,159 -7,840 Military expenditures............................................ -2,945 -3,735 -4,340 -979 -1,072 -1.065 -1,098 -1,104 “1,108 Transportation....................................................... -2,679 -2,923 -2,982 -750 -767 -745 “720 -750 -824 Travel................................................................... -2,438 -2,657 -3,195 -674 -704 -841 -925 -725 -767 Investment income payments................................ -1,729 -2,074 -2,293 -563 -560 -560 -575 -598 -650 Other services.......................................................... -989 -1,132 -1,189 -288 -289 -292 -295 -312 “304 Balance on goods and services L................................. 6,901 5,080 4,768 1,130 1,293 1,269 1,359 848 374 Remittances and pensions........................................... -1,027 -1,015 -1,276 -247 -262 -392 -358 -263 -269 1. Balance on goods, services, remittances and pensions....................................................... 5,874 4,065 3,492 883 1,031 877 1,001 585 105 2. U.S. Govt, grants and capital flow, net................. -3,370 -3,444 -4,210 -747 -1,176 -1,039 -988 -1,008 -1,163 Grants, 2 loans, and net change in foreign cur­ rency holdings, and short-term claims....... -4,242 -4,676 -5,191 -1,149 -1,394 -1,305 -1,226 -1,266 -1,510 Scheduled repayments on U.S. Govt, loans. .. 651 803 975 210 218 266 233 258 305 Nonscheduled repayments and selloffs............. 221 429 6 192 ♦ 5 * 42 3. U.S, private capital flow, net............................... -3,794 -4,298 -5,504 -1,163 -975 -1,104 -1,788 -1,638 -711 Direct investments............................................. -3,468 -3,623 -3,020 -1,054 -653 -651 -902 -815 -468 Foreign securities................................................ -759 -481 -1,266 -30 -259 -199 -476 -332 -406 Other long-term claims: Reported by banks...................................... -232 337 285 107 153 188 -72 16 204 Reported by others.......................................... -88 - 112 -289 -16 -68 -170 42 -93 42 Short-term claims: Reported by banks...................................... 325 -84 -744 -59 -74 -386 -363 79 161 Reported by others......................................... 428 -334 -470 -Hl -74 114 -17 -493 -244 4. Foreign capital flow, net, excluding change in liquid assets in U.S............................. 270 2,532 3,185 797 866 1,202 766 352 1,311 Long-term investments....................................... -68 2,156 2,344 679 693 982 359 310 1,112 Short-term claims............................................... 149 296 388 57 94 80 174 40 -20 Nonliquid claims on U.S. Govt, associated with— Military contracts........................................... 306 346 64 148 95 147 -67 “111 -20 U.S. Govt, grants and capital........................ -86 -205 -85 -129 -38 -12 -23 -12 -8 Other specific transactions............................. -24 -12 5 -II 22 5 -12 -10 -27 Other nonconvertible, nonmarket able, me­ dium-term U.S. Govt, securities 3.............. -7 -49 469 53 * * 335 135 273 S. Errors and unrecorded transactions........................ -315 -210 -532 -102 -250 -458 207 -34 -148 Balances A. Balance on liquidity basis Seasonally adjusted (= 14-2+3+4+5),......... -1,335 -1,357 -3,571 -333 -505 -522 -802 “1,742 -606 Less: Net seasonal adjustments............. 133 -267 -302 410 159 -382 Before seasonal adjustment........................ -1,335 -1,357 -3,571 -466 -238 -220 -1,212 -1,901 -224 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted......................... -1,335 -1,357 -3,571 -333 -505 -522 -802 -1,742 -606 Plus: Seasonally adjusted change in liquid assets in the U.S, of: Commercial banks abroad............................. 116 2,697 1,262 1,007 -979 355 1,119 767 390 Other private residents of foreign countries.. 306 212 413 -54 80 12 96 225 -3 International and regional organizations other than IMF......................................... -291 -525 -218 -108 -36 -78 -55 -49 65 Less: Change in certain nonliquid liabilities to foreign central banks and govts............... 85 761 1,291 413 324 573 111 283 356 Balance B, seasonally adjusted.................. -1,289 266 -3,405 99 -1,764 -806 247 -1,082 -510 Less: Net seasonal adjustments........................ 284 -485 - 101 272 314 -600 Before seasonal adjustment........................ -1,289 266 -3,405 -185 -1,279 -705 -25 -1,396 90 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A-71 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1966 I967r 1968 Item I965r 1966'- 1967'' 1 1 11 1 111 IV1 IV Ip Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis....................... 1,335 1,357 3,571 466 238 220 1,212 1,901 224 Change In U.S. official reserve assets (in­ crease, —).............................. 1 .222 568 52 -6 1 .027 -419 -375 -181 904 Gold....................................................... 1 ,665 571 1,170 121 51 15 92 1 ,012 1 ,362 Convertible currencies................................... -349 -540 -1 ,024 -173 1 ,007 -424 -462 -1,145 -401 IMF gold tranche position........................... -94 537 -94 46 -31 -10 -5 -48 -57 Change In liquid liabilities to all foreign accounts 113 789 3,519 472 -789 639 1 .587 2,082 -680 Foreign central banks and govts,: Convertible nonmarketable U.S. Govt, securities^.............1.2..2............-.9...4..5......... 455 -176 72 4(> 125 212 100 Marketable U.S. Govt, bonds and notes s. -20 -245 48 8 5 52 -6 -3 -359 Deposits, short-term U.S. Govt, securi­ ties, etc.........-..1..5...4............-.5...8..2............1. .,.537 -31 - 174 441 162 1 ,108 -1,107 IMF (gold deposits)..................................... 34 177 22 17 5 * 8 Commercial banks abroad............................ 1 16 2,697 1 .262 833 -753 161 1 ,265 589 616 Other private residents of foreign countries. 306 212 413 -54 80 12 96 225 -3 International and regional organizations other than IMF...................................... -291 -525 -218 -108 -36 -78 -55 -49 65 B. Official reserve transactions.........1..,.2..8..9...........-..2...6..6. 3,405 185 1,279 705 25 J,396 -90 Change in U.S. official reserve assets (in­ crease, —)................................................. 1 ,222 568 52 -6 1.027 -419 -375 -181 904 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)................................................... -18 - 1 .595 2,062 -199 -80 544 28! 1 ,317 -1.358 Change in certain non liquid liabilities to foreign central banks and govts.: Of U.S. private organizations.................. -38 793 839 375 304 587 -212 160 1 17 Of U.S. Govt.............................................. 123 -32 452 15 28 -7 331 100 247 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). Details may not subscription to IMF. add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1965 1966 1967 1968 1965 1966 1967 1968 1965 1966 1967 1968 Month: Jan................. 3 1,228 2,264 2,616 2,785 31,199 1,918 2,256 2,615 3 28 347 360 170 Feb.................... 3 1,623 2,376 2,607 2,773 31,606 2,024 2,229 2,602 3 17 352 378 171 Mar.................... 3 2,739 2,554 2,551 2,455 31,861 2,080 2,203 2,612 3 878 474 349 -158 Apr............... 3 2,406 2,354 2,654 2,888 3 1,811 2,113 2,226 2,640 3595 241 428 248 May........... 3 2,299 2,416 2,547 2,720 3 I,797 2,082 2,140 2,752 3 503 334 407 -32 June................... 3 2,235 2,487 2,577 31,848 2,142 2,227 3 386 346 349 July.................... 2,300 2,455 2,584 M,742 2,178 2,208 4558 277 376 Aug............ 2,329 2,444 2,598 1,825 2,119 2,125 504 324 473 Sept............. 2,291 2,540 2,593 1,858 2,295 2,209 433 244 384 Oct. ............. 2,349 2,588 2,392 1,885 2,250 2,202 464 338 191 Nov................... 2,378 2,503 2,692 1,941 2,186 2,376 438 317 317 Dec.................... 2,362 2,409 2,604 1,911 2,225 2,525 451 184 79 Quarter: I...................... 3 5,589 7,195 7,775 8,012 3 4,666 6,021 6,688 7,830 3 923 1,173 1 ,087 183 36,940 7,257 7,777 35,456 6,336 6,593 31,484 921 1,(84 hi...................... 6,920 7,439 7,775 45,425 6,592 6,542 41,495 846 1,233 IV....................... 7,090 7,500 7,688 5,736 6,661 7,102 1,353 839 586 Year 5............ 26,700 29,379 30,942 421,366 25,542 26,816 5,334 3,837 4,126 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under * Significantly affected by strikes and by change in statistical procedures. Mutual Security Program. 5 Sum of unadjusted figures. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Note.—Bureau of the Census data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

m.o. ’jv/lu# I rminom^ l icilNO ^ JULT 1^00 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1967 1968 Area and country 1959 1960 1961 1962 1963 1964 1965 1966 1967 I II III IV I Western Europe: Austria............................ -83 -1 -143 -82 -55 -100 -25 Belgium, ......................... -39 -141 -144 -63 -40 -83 -25 France............................ -266 -173 -456 -518 -405 -884 -601 Germany, Fed, Rep, of... -34 -23 -225 -1 -2 -2 -2 * -1 * -52 Italy................................... 100 200 -80 -60 -85 -85 -184 Netherlands....................... -30 -249 -25 -60 -35 -49 Spain................................... -114 -156 -146 -130 -32 -180 Switzerland......................... 20 -324 -125 102 -81 -50 -2 -30 -30 -25 United Kingdom................ -350 -550 -306 -387 329 618 150 80 -879 3 -34 -77 -771 -900 Bank for Inti. Settlements. -32 -36 -23 Other................................... -48 -96 -53 -12 i -6 -35 -49 16 -18 20 19 -6 -1 Total........................... -827 -1,718 -754 -1,105 -399 -88 -1,299 -659 -980 -15 -44 -58 -863 -1,195 Canada................................... 190 ............ 200 150 ............50 ..........1..00 50 Latin American republics: A Br r a g z e i n l. t . i .. n .. a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -11 -5 -2 0 -9 -2 0 8 5 5 7 -3 7 0 2 54 25 -3 -3 9 - - 1 1 * * * * • ............ Colombia.......................... -6 38 10 29 7 Venezuela.......................... 65 -25 Other................................... -35 -42 -17 -5 -11 -9 -13 -6 11 -2 13 6 -7 -28 Total...................... 19 -100 -109 175 32 56 17 -41 9 -3 12 6 -7 -28 Asia: Iraq..................................... -30 -10 -4 -21 * * .........-.2..1 -14 Japan.......................... -157 -15 ............ -56 Lebanon............................. -21 -32 -11 -II -1 -I -74 Malaysia............................ -1 -10 Singapore............................ -30 Other................................... -28 -68 -80 -60 12 14 -14 15 -22 -20 -1 -1 -1 -15 Total........................... -186 -113 -101 -93 12 3 -24 -86 -44 -20 -1 -1 -22 -143 AU other................................. -5 -38 -6 -1 -36 -7 -16 -22 1-166 2 -6 -1 1-162 -1 Total foreign countries...... -998 -1,969 -970 -833 -392 -36 -1,322 -608 -1,031 -36 12 -53 -953 -1,317 Inti. Monetary Fund............ 2 -44 3 300 150 ............ 4-225 5177 522 516 55 5* 5 8 Grand total................ -1,041 -1,669 -820 -833 -392 -36 -1,547 -431 -1,009 -20 17 -53 -953 -1,309 1 Includes sale of $150 million to Algeria. repurchase; proceeds from these sales invested by IMF in U.S. Govt, 2 Payment to the IMF of $344 million increase in U.S. gold sub­ securities. scription, less sale by the IMF of $300 million (see note 3), 4 Payment to the IMF of $259 million increase in U.S. gold subscription, 5 IMF sold to the United States a total of $800 million of gold ($200 less gold deposits by the IMF. million in 1956, and $300 million in 1959 and in 1960) with the right of 5 Represents gold deposit by the IMF; see note 1(b) to Table 4. Note.—Tables 3-22: The tables in this section provide these holdings (arising from U.S. drawings and repay­ data on U.S. reserve assets and liabilities and other sta­ ments of foreign currencies, from drawings and repay­ tistics related to the U.S. balance of payments. ments of dollars by other countries, and from other dollar Beginning with the May 1967 issue of the Bulletin, operations of the IMF) give rise to equal and opposite data on short-term liabilities to foreigners shown in Tables changes in the U.S. gold tranche position in the IMF. 8 and 9 (formerly Tables 1 and 2) have been revised to In the absence of U.S. lending to the IMF, the gold exclude the holdings of dollars by the IMF derived from tranche position is equal to the U.S. reserve position in payments of the U.S. subscription and from the exchange the IMF. Since the reserve position is included in U.S. transactions and other operations of the IMF. (Liabilities reserve assets, it is necessary, in order to avoid double­ representing the “gold investment” of the IMF continue counting, to exclude the “holdings of dollars” of the to be included). This change in the treatment of the IMF from U.S. liabilities to foreigners. The revised “holdings of dollars” of the IMF is related to the revision presentation conforms to the treatment of these items in at that time of the table on U.S. monetary reserve assets the U.S. balance of payments and the international (Tabei 4) to include the U.S. reserve position in the IMF. investment position of the United States. The “holdings of dollars” of the IMF do not represent Beginning with the June 1968 issue of the Bulletin, liabilities to foreigners in the same sense as do other Table 19, “Liabilities of U.S. Banks to their Foreign reported liabilities to foreigners. They are more accurately Branches,” has been included in this section. Weekly viewed as contingent liabilities, since they represent data on these liabilities for the period Jan. 1964-Mar. essentially the amount of dollars available for drawings 1968 were included in the May 1968 issue on page A-104. from the IMF by other member countries. Changes in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ U.S. GOLD STOCK; POSITION IN THE IMF A-73 4. U.S. GOLD STOCK, HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES, AND RESERVE POSITION IN IMF (In millions of dollars) End of year re T s o e t r a v l e Gold stock 1 v fo e C r r e o ti i n b g ­ l n e p R o e s s i i e n t r i o ve n End of month re T s o e t r a v l e Gold stock 1 v fo e C r r o e ti i n b g ­ l n e p R o e s s i e ti r o v n e assets Total 2 Treasury currencies IMF 3 assets Total 2 Treasury curren­ IM in F 3 cies 5 1958 ........................ 22,540 20,582 20,534 1,958 1967—June.......... 14,274 13,169 13,110 738 367 1959 ........................ 21,504 19;507 1SM56 1'997 July............ 14,224 13,136 13,108 719 369 Aug........ 14,’605 13^075 13,008 1,162 368 I960........................ 19,359 17,804 17,767 1,555 Sept........ 14,649 13'077 13,006 1,200 372 1961........................ 18,753 16,947 16^889 116 1,690 Oct........ 14,927 13,039 12,905 1 J 509 379 N ov,....... 15,438 12,965 12.908 2,092 381 1962........................ 17,220 16,057 15,978 99 1,064 Dec............. 14,830 12,065 11,982 2,345 420 1963........................ 16,843 15,596 15,513 212 1,035 1968—Jan.............. 14,620 12,003 11,984 2,176 441 1964........................ 16,672 15,471 15,388 432 769 Feb............. 14,790 11'900 11,882 2,235 655 1965........................ 15^50 413,806 413,733 781 4 863 Mar 13,926 10'703 10,484 2,746 477 Apr........ 13'840 10'547 10’484 2^804 489 1966........................ 14,882 13,235 13,159 1,321 326 May............ 14,348 10'468 10,384 3,386 494 1967................. 14,830 12;O65 11,982 2,345 420 June............ 14,063 10,681 (0,367 2>79 903 1 Includes (a) gold sold to the United States by the International Mon­ * 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-13. 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. 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 re U se .S rv . e other countries Period with IMF position in IMF P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F 1 D f c r o c u a r i r w o e e r s i f e i g n n 2 n g ­ s I i d M n o c F i l o n l a m n rs e e t D d r o aw o ll f a i n rs gs R d m o e e i l p n l n a a t r y s s ­ c T ha o n ta g l e Amount P q e U r u o . o c S f t e . a nt p ( e e r n io d d o ) f J 1946—1957............................. 2,063 4 594 -45 —2,664 827 775 775 28 1,975 1958—1963............................. 1 ,031 150 60 -1’666 2,740 2,315 3,090 75 I ',035 1964............................. 525 18 — 282 5 266 3,356 81 769 1965................ 435 12 -282 165 3'521 85 5 863 1966............................. 776 680 15 -159 1 1,313 4’834 94 326 1967..................... 20 -114 -94 4,740 92 420 2 — 3 -1 4,793 93 367 July ............................ t — 3 -2 4,791 93 369 Aug................ 2 -1 1 4,792 93 368 Sept ................ — 1 -3 -4 4,788 93 372 OcL.............................. 3 -10 -7 4,781 93 379 Nov ................ 2 -4 -2 4,779 93 381 Dec.............................. -39 -39 4,740 92 420 196R Jan............................... 3 -24 -21 4,719 91 441 Feb............................. 2 -216 -214 4,505 87 655 Mar................ 200 1 -23 178 4,683 91 477 A pr.............................. 2 -14 -12 4,671 91 489 May........................ 2 -7 -5 4,666 90 494 June........................... -1 -408 -409 4,257 83 903 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-/4 IINIL. UArilAL I HAIViiACI l<JINi> Uh I Ht U.b. u JULV iyt>« 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Inti. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising ------------ monetary inti, and from gold transactions Official institutions-J Banks and other foreigners regional organizations 5 Non­ pe E O r n i c f o l d Total Total p G o d o s e i l ­ d t J i m n G v e o e n l s d t t 2 ­ Total i I p S t b l n i t i o a h e e a b r U n s r b o y t m k e i r . r l S t d s e ­ ­ . ­ M n b G a U o a o a b o n t r n . e k S l v d d e s e t . s , 4 t ­ c m T o b a U a a n o r i u b b e n r v n r . l k l a S y d e d e e s e . r s ­ t t ­ ­ Total i i p S t l b n i t i o h e a a e b r U s n o b r y t m e k i r . r l S t d e s ­ ­ . ­ M b n G o a U a o a o n b n r t . k v e l S d d e s e t . s , 4 t ­ Total i i n p S b t l i t i o h a e e a U b r n s r o b y t m . k e i r S r l t d e s ­ ­ . ­ 6 M n b G a U o a a o b o n t r n . e k l S v d d e s t e . s . “ t ♦ ­ notes 1957.. 715,825 200 200 n.a. 7,917 n.a. 5,724 n.a. 542 n.a. 1958,. 716,845 200 200 n.a, 8,665 n.a. 5,950 n.a. 552 1959.. 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 19608. 1 1 2 2 1 0 , , 0 9 2 9 7 4 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 7 66 6 7 7, , 5 5 9 9 1 8 7 7 , , 0 0 4 4 8 8 5 5 4 5 3 0 1 I , , 5 54 2 1 5 7 7 5 5 0 0 7 7 7 91 5 1961 8. 1 1 2 2 2 2 , , 9 8 3 5 6 3 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 30 0 1 1 0 0 , , 9 9 4 4 0 0 8 89 9 0 0 8 8 , , 2 3 7 5 5 7 7 7 , , 8 7 4 5 1 9 5 5 1 16 6 1 1 , , 9 94 4 8 9 7 7 0 0 3 4 1 1 , , 2 2 4 4 5 5 19628, 1 1 2 2 4 4 , , 0 0 6 6 8 8 8 8 0 0 0 0 8 8 0 0 0 0 1 1 2 2 , , 7 7 4 1 8 4 1 1 1 1 , , 9 9 9 6 7 3 7 7 5 5 1 1 8 8 , , 3 3 5 5 9 9 7 7 , , 9 9 1 1 1 1 4 44 4 8 8 2 2 , , 1 1 6 9 1 5 1 1 , , 2 2 5 8 0 4 911 1963 8 /26.361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 126,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 19648. [2 28 9 , , 9 0 5 0 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 5 5 , , 4 4 2 2 8 4 1 13 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1, , 0 0 7 79 9 H 11 , , 0 0 0 5 1 6 1 1 0 0 . , 6 6 2 8 5 0 3 37 7 6 6 1 1 , , 7 7 2 2 2 2 8 8 1 1 8 8 9 9 0 0 4 4 1965., 29,115 834 34 800 15,372 13,066 1,105 1,201 11.478 11,006 472 1,431 679 752 19668. [ 1 2 2 9 9 , , 7 9 7 0 9 4 1 1 , , 0 0 1 1 1 1 2 21 U 1 8 8 0 0 0 0 1 1 3 3 , , 6 6 5 0 5 0 1 12 2 , , 5 4 3 8 9 4 8 8 6 60 0 2 2 5 5 6 6 1 1 4 4 , , 3 2 8 0 7 8 1 1 3 3 , , 8 6 5 8 9 0 5 5 2 2 8 8 9 90 0 5 6 5 5 8 8 1 0 3 32 2 5 5 1967—Apr.. 29,379 1,030 230 800 14,102 12,873 901 328 13,385 12,856 529 862 629 233 May. 29,612 1,030 230 800 14,380 13,115 917 348 13,361 12,832 529 841 607 234 June. 29,629 1,033 233 800 14,097 12,806 917 374 13,708 13,170 538 791 561 230 July. 30,087 1,033 233 800 14,158 12,867 917 374 14,060 13,519 541 836 609 227 Aug. 30,833 1 ,033 233 800 14,071 12,711 449 14,943 14,395 548 786 579 207 Sept. 31,216 1 .033 233 800 14,378 12,968 911 499 15,069 14,517 552 736 528 208 Oct.. 32,427 1 ;i)33 233 800 14,907 13,395 601 15,765 15,204 561 722 515 207 Nov. 33,815 1,033 233 800 15,956 14,337 908 16,074 15,527 547 548 204 Dec.. ’[ 1 3 3 3 3 , , 1 2 6 9 0 8 1 1 , , 0 0 3 3 3 3 2 2 3 3 3 3 8 8 0 0 0 0 1 1 5 5 , , 6 6 9 8 5 7 1 1 4 4 , , 0 0 7 6 6 8 9 9 0 0 8 8 '1 1 5 5 . , 7 8 5 83 8 > 1 1 5 5 , . 3 2 2 0 5 0 5 5 5 5 8 8 6 6 8 8 7 2 4 4 8 7 3 8 2 2 0 0 4 4 1968—Jan.. '33,135 I ,033 233 800 15,247 13,819 717 >16,168 '15.598 570 >687 >•483 204 Feb.. >33,341 1 ,033 233 800 15,368 14,005 652 '16,308 >15.715 593 427 205 Mar. 32,507 1 ,041 241 800 14,318 12,958 549 81 I 16,396 15,792 604 752 547 205 Apr.'' 33,022 1 .045 245 800 14,424 13.064 549 811 16.734 16,122 612 819 614 205 * Represents liability on gold deposited by the International Monetary 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for Fund to mitigate the impact on the U.S. gold stock of foreign purchases which breakdown by type of holder is not available. for the purpose of making gold subscriptions to the IMF under quota in­ ft Data on the two lines shown for this date differ because of changes in creases. reporting coverage. Figures on the first line are comparable with those 2 U.S. Govt, obligations at cost value and funds awaiting investment shown for the preceding date; figures on the second line are comparable obtained from proceeds,of sales of gold by the IMF to the United States with those shown for the following date. to acquire income-earning assets. Upon termination of investment, the same quantity of gold can be reacquired by the IMF. Nori:.—Based on Treasury Dept, data and on data reported to the 3 Includes Bank for International Settlements and European Fund. Treasury Dept, by banks and brokers in the United States. Data correspond 4 Derived by applying reported transactions to benchmark data; to statistics following in this section, except for minor rounding differences. breakdown of transactions by type of holder estimated for 1960-63. Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury Includes securities issued by corporations and other agencies of the U.S. letters of credit and non-negottable, non-interest-bearing special United Govt, that are guaranteed by the United States. States notes held by other international and regional organizations. 5 Principally the International Bank for Reconstruction and Develop­ The liabilities figures arc used by the Dept, of Commerce in the statistics ment and the Inter-American Development Bank. measuring the U.S. balance of international payments on the liquidity 6 Includes difference between cost value and face value of securities in basis; however, the balance of payments statistics include certain adjust­ IMF gold investment account. Liabilities data reported to the Treasury ments to Treasury data prior to 1963 and some rounding differences, and include the face value of these securities, but in this table the cost value of they may differ because revisions of Treasury data have been incorporated the securities is included under “Gold investment.” The difference, which at varying times. The table does not include certain nonliquid liabilities amounted to $32 million at the end of 1966, is included in this column. to foreign official institutions that enter into the calculation of the official reserve transactions balance by the Dept, of Commerce. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INTL. CAPITAL. TRANSACTIONS OF THE U.S. A-75 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period fo T r o e t i a g l n E W u e ro st p e e r n 1 Canada Am L e a r t i i c n an Asia Africa cou O n t t h r e ie r s 2 countries republics 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 3................................................................................. / ( 1 1 3 3 , ’ 6 6 5 0 5 0 7 7, 3 4 8 8 8 8 1 1 , , 1 18 8 9 9 l 1 ’ ,1 l3 3 4 4 3 3 , , 2 3 8 3 4 9 2 2 7 77 7 2 22 2 8 8 1967--Apr............................................................................. 14,102 7,829 1,156 1,455 3,148 284 230 May............................................................................. 14,’380 8 ,’0I4 f ’,154 1 ’,508 3,'183 284 237 J une,.......................................................................... 14,097 8*213 909 1 ',287 3’157 270 261 July.............................................................................. 14 J58 8^297 909 1^315 3,160 246 231 14 071 8’357 912 1 ’ 186 3 J 22 253 241 Sept........................................................................... 14,378 8.649 903 1,184 3J72 224 246 Oct............................................................................. 14’907 9,065 968 1 ^219 3 J 70 228 257 Nov............................................................................ 15’956 10,’257 901 1,266 3,053 224 255 Dec............................................................................ 15'687 9’872 996 I '136 3'179 246 258 15,247 9,373 1,091 f ,2(5 3,090 226 252 Feb............................................................................... 15^368 9,179 1 ,403 1 ’175 3 J 22 269 220 Mar............................................ 14,318 8,881 851 1,179 2,964 227 216 Aprj'........................................................................... 14324 8,624 1.040 1 ,376 2,906 244 234 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. pean dependencies in Latin America. 'Note.—Data represent short-term liabilities to the official institutions 3 Data on the two lines shown for this date differ because of changes of foreign countries, as reported by banks in the United States, and foreign 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 Other E pe n r d i o o d f G to r t a a n l d 1 Total 1 Inti. 1 gi R on e­ al2 Total O ci f a f l i­ 1 Other Europe Canada A L m a e t r in ic a Asia Africa c t o ri u e n s ­ 1966.............................. 27,599 1,380 1,270 110 26,219 12,539 13,680 13,933 2,502 3,883 5,250 385 266 (967--M .................. 27,354 1,407 1,287 120 25,947 13,115 12,832 13,437 2,317 4,366 5,158 392 277 June.................. 27,337 1,361 1,252 109 25,976 12,806 13170 13,917 2,065 4,145 5,169 376 303 July................... 27,795 1 .409 I '296 113 26,386 12,867 (3,519 14,145 2,270 4,148 5,200 339 284 Aug............ 28'485 1 .379 1 ,248 131 27,106 12,711 14,395 14,948 2,253 4,017 5,245 367 277 Sept............. 28'813 1 .328 1,205 123 27385 12,968 14,517 15,116 2,329 4,044 5,371 329 296 Oct................... 29’914 1 ,315 1,187 128 28,599 13,395 15,204 15,788 2,688 4,126 5,356 332 309 Nov................... 31 ,212 1 ,348 1 ,217 131 29,864 14,337 15,527 17,104 2,613 4,226 5,286 328 306 Dec. 4............... '{ /3 3 0 0 ; , 6 5 8 4 4 6 1 1 , . 2 2 8 7 3 8 •1 1 , , 1 1 7 7 7 7 1 10 0 1 6 •• 2 2 9 9 ,4 ,2 0 6 1 8 1 1 4 4, , 0 0 6 7 8 6 ’• 1 1 5 5 , , 3 2 2 00 5 '1 1 6 6 , , 1 3 9 6 9 5 2 2 , , 7 7 0 09 6 4 4 , , 1 14 4 5 2 5 5, , 5 5 5 2 9 6 3 3 4 49 9 3 3 1 1 0 0 1968—Jan.................... GO, 700 '1 ,283 1,186 '97 ’’29,417 13,819 U5.598 '16,033 3,101 4,199 5,446 326 312 Feb.................... ’•30,947 1 ,227 1,113 1 14 ’•29,720 14,005 ’15,715 ’16,129 3,201 4,131 5,539 434 286 Mar................. 30,097 1 ,347 1 ,254 93 28,750 12,958 15,792 15,861 2,791 4,078 5,394 339 287 Apr.7*............... 30,600 1 ,414 1 322 92 29,186 13,064 16,122 15,846 2,943 4,304 5,432 366 295 May''................ 30 J 63 1 ,252 1,(66 86 29.511 12,299 17,212 16,100 3,054 4,293 5,383 371 310 8a. Europe Ger­ E p n er d i o o d f Total Austria B b L e o u l u g x r i e u g m m 5 ­ - m D a e r n k ­ l F a i n n d ­ France R m F e a p e n d . y . o , f Greece Italy N l e an th d e s r­ Norway Po g r a t l u­ Spain Sweden 1966 ................ 13,933 196 420 305 58 1,070 2,538 129 1,410 364 283 358 162 656 1967—May.... 13,437 159 480 274 89 958 2,376 iOS 1,410 402 301 345 117 651 June.... 13,917 173 557 276 96 948 2,342 103 1,422 396 348 352 122 659 July. ... 14,145 197 545 262 91 1,021 2,297 106 1,573 405 379 357 181 660 Aug. ,.. 14,948 181 563 235 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...... 17,104 184 605 201 99 1,431 2,276 161 1,999 542 389 414 130 493 (16,365 231 600 243 99 1 ,326 2,218 170 1 ,948 585 449 437 150 489 Dec,4... r[l6,l99 231 '632 243 99 1,330 2,217 170 1 ,948 '589 449 437 150 '492 1968—Jan........ '16,033 165 '584 212 116 1 ,350 1 ,924 165 1 ,896 '530 367 437 137 '516 Feb....... '16,129 177 '580 220 126 1 ,245 2,143 159 1 ,786 '488 390 426 121 '535 Mar.... 15,861 154 539 199 139 1,162 2,351 154 1 ,573 361 385 388 129 529 Apr.''... 15,846 181 513 177 141 1 ,202 2,134 156 1 .534 330 399 394 134 565 May'',.. 16,100 165 530 178 140 959 2.009 154 1 ,364 272 404 381 153 582 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-76 IN(L. CAHHAL IKANSACIIONS Ob I Ht U.S. ° JULY 1968 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 8a. Europe—Continued 8b. Latin America E p n e d ri o o d f Sw la i n tz d er­ Turkey U K d n i o i n m t g ed ­ Y sla u v g i o a ­ W E O u e t r s h o t e 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 1966................. 1 805 43 3 817 37 234 8 40 3,883 418 299 261 178 8 632 1967—May.... 1,747 25 3,531 41 386 4 30 4,366 645 331 252 158 9 762 June... . 1,801 26 3,667 33 557 5 34 4,145 578 249 249 169 8 715 July. ... 1,717 23 3,641 27 630 4 30 4,148 603 219 233 153 8 745 Aug....... 1 ,657 23 4,319 25 581 4 35 4,017 609 196 229 135 9 702 Sept.. . . 1,701 29 4,221 26 592 5 32 4,044 606 216 224 166 9 693 Oct....... 1,629 27 4,851 25 585 6 33 4,126 581 263 222 151 10 685 Nov.. . . 1,652 38 5,931 26 491 4 37 4,226 594 273 230 158 9 703 fl ,732 33 4,846 23 736 8 44 4,145 485 237 252 169 9 723 (1,732 33 '4,667 23 706 8 44 4,142 484 237 252 169 9 720 1968—Jan........ 1 ,539 39 ’5,142 42 834 7 31 4,199 432 277 251 159 9 722 Feb....... 1 ,517 39 '5,431 56 653 6 29 4,131 4(9 291 239 165 8 747 Mar. . . . 1,657 29 5,583 52 439 4 35 4,078 435 301 263 157 8 721 Apr. ?’,. 1,543 28 5,881 60 438 4 31 4,304 449 351 260 163 8 745 May"... 1 ,553 25 6,792 59 350 4 26 4,293 477 310 241 190 8 813 8b. Latin America—Continued 8c. Asia E pe n r d i o o d f Panama Peru U gu r a u y - V zu en e ? ia O L re t . 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 i r c a Total C M la h a n i i n d n a - H Ko o n n g g India n d I e n o si ­ - a Israel 1966.................. 150 249 707 577. 177 104 17 5,250 36 142 179 54 115 1967—May.... 145 257 155 732 76 218 107 20 5,158 36 167 223 49 106 June.... 145 265 691 567 236 121 19 5,169 36 158 216 47 165 July.... 155 270 136 764 544 192 1 10 17 5,200 36 165 220 58 166 Aug...... 157 257 128 725 520 209 116 24 5,245 36 181 242 50 148 Sept...... 159 250 138 706 521 219 121 17 5,371 36 187 243 47 142 Oct....... 164 250 131 778 15 234 123 18 5,356 36 194 233 59 148 Nov...... 181 264 131 792 520 236 111 20 5,286 36 209 250 39 149 Dec.4... / U 1 7 70 0 2 2 7 7 4 4 1 14 4 7 7 7 7 9 9 3 3 5 5 2 2 3 3 2 2 3 3 3 3 1 1 1 1 1 1 1 1 8 8 5 5, , 5 5 5 2 9 6 3 3 6 6 2 2 1 1 5 7 '3 3 5 5 4 4 3 3 4 4 1 1 3 38 8 1968—Jan........ 160 281 143 851 12 276 108 18 5,446 37 224 329 40 127 Feb....... 153 267 152 770 559 252 89 17 5,539 36 226 351 42 147 Mar. . . . 137 258 143 730 579 242 86 19 5,394 37 228 319 39 122 Apr. ». . 136 276 14C 814 603 242 90 25 5,432 36 221 342 46 135 May A.. 142 272 144 780 579 226 86 25 5,383 36 238 368 41 139 8c. Asia—Continued 8d. Africa 8e. Other countries E pe n r d i o o d f Japan Korea P p h in il e ip s ­ T w a a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) r M oc o co ­ A So fr u i t c h a ( U E . g A y . p R t) . A O f t r h i e c r a Total t A ra u l s ia ­ o A th l e l r 1966.................... 2,671 162 285 228 598 779 385 31 71 39 229 266 243 22 1967_May........ 2,480 168 268 225 663 Z73 392 11 32 58 18 273 277 253 24 June........ 2,516 171 260 227 617 ^55 376 1( 31 67 18 250 303 276 27 July.......... 2,449 191 276 227 663 749 339 35 63 15 214 284 255 28 Aug......... 2,443 184 271 230 685 ns 367 r 33 73 21 224 277 252 25 Sept...... 2,554 192 287 230 684 768 329 h 37 55 17 205 296 271 25 Oct.......... 2,523 193 273 229 663 805 332 K 32 59 15 210 309 284 25 Nov.. 2,462 203 286 220 629 802 328 26 63 17 209 306 276 30 Dec,4... ( 1 2 2 , , 6 5 0 6 1 7 1 1 7 7 6 6 2 29 9 1 1 2 2 2 2 6 2 6 6 3 3 0 0 8 8 5 5 8 9 3 3 4 4 9 9 3 3 3 : 1 1 8 8 6 6 1 1 1 1 6 6 2 2 2 2 1 1 3 3 1 10 0 2 2 8 8 3 3 2 2 7 7 1968—Jan........... 2,496 195 299 216 655 830 326 3( 17 61 18 201 312 285 27 Feb......... 2,545 181 295 211 661 843 434 3( 22 53 15 315 286 254 33 Mar...... 2,540 174 293 209 669 764 339 2f 22 57 17 215 287 258 29 Apr.p.... 2,551 185 287 196 692 740 366 2' 14 54 19 252 295 270 25 May7’.... 2,501 178 267 197 690 729 371 25 10 60 20 257 310 285 25 1 Data exclude the “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line are Fund. comparable with those shown for the following date. 2 Latin American, Asian, African, and European regional organiza­ 5 Through the first line for Dec. 1967 Luxembourg was included in tions, except Bank for International Settlements and European Fund Other Western Europe. which are included in “Europe.” 6 Includes Bank for International Settlements an 1 European Fund; 3 Foreign central banks and foreign central govts, and their agencies, beginning with the second line for Dec. 1967 excludes Luxembourg. and Bank for International Settlements and European Fund. 4 Data on the two lines shown for this date differ because of changes in For Note see end of Table 8. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-77 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) 1966 1967 1968 1966 1967 1968 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr, Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus.......................................... 1.7 1 5 1.7 20.9 Jordan........................... . 39.7 45 2 30 8 6 6 Iceland.......................................... 6.6 5.7 4.3 3.3 Kuwait.............................. , ., 49 2 286 36 6 34 0 Ireland, Rep. of.......................... 8.9 7.4 r9.4 14.7 Laos..................................... 4 6 65 3 6 4 0 Luxembourg................................ 25.3 21.7 '31.3 (8) Lebanon.............................. ., 100 1 112 2 113 3 97 3 Malaysia..................................... 38.3 349 63 9 5 2 1 Other Latin American republics: Pakistan................................. 49.2 45.3 54*8 54* 1 Bolivia.......................................... 66.9 57.9 59.9 61.0 Ryukyu Islands (inch Okinawa). 15.9 31.2 W.5 26.4 Costa Rica................................... 34.6 41 9 42.6 55.0 Saudi Arabia........ . 176.1 96 4 61 2 70 3 Dominican Republic................... 53.2 53.9 55.1 60.2 Singapore................................. 34.6 60' 3 1 50 5 1 56 9 Ecuador................................ 86.3 92.4 85.6 64.1 Syria.............................. .. 3 4 4 7 63 6 5 El Salvador.......................... 68.9 96'4 72.8 83.6 Vietnam....................... . , 132.0 146.3 148 2 P} () Guatemala.................................... 64.2 83 9 73.0 96,4 Haiti........................ 16. 3 16 8 15.8 17 4 Other Africa: Honduras..................................... 26.8 28.6 29.7 H.4 Algeria............................. , 11,3 13 4 6 9 7 9 Jamaica...................................... 11.7 19 3 22.4 Ethiopia, (inch Eritrea).. . , 53.5 40*2 23 8 22 5 Nicaragua..................................... 72.8 62 7 45.6 57.9 Ghana............................. . 1 6.9 5 3 4 3 1 3 0 Paraguay..................................... 14.9 16 6 12.7 13.6 Kenya........................... 1 2 1 1 6* 4 19 8 Trinidad & Tobago................. 4.7 5.4 6.1 9.2 Liberia....................... .. . 2U2 2L6 24 9 76 4 Libya....................... 37.1 76.0 179 45 0 Other Latin America: Nigeria........................................ 25.7 36 5 37 9 British West Indies...................... 14.6 14.2 13.8 20.6 Southern Rhodesia.... . 2.7 3 3 2#4 4 7 Sudan.......................................... 3.4 6*7 7. 3 2 1 Other Asia: Tanzania........................ , 6 5 9 1 20* 3 Afghanistan........................... 9.5 7.8 5.5 5.6 Tunisia .............. i1 i 10 10 3 Burma........................................... 34.4 20.3 10.8 16.6 Uganda........................ . 7 7 1 4 10 0 Cambodia..................................... 1.1 1.3 1.9 2.7 Zambia..................................... 34^7 25^9 24.8 21.3 Ceylon.......................................... 3.2 2.7 5 .0 4. 5 Iran....... .................. 36.6 44.0 49.6 38.4 All other: I raq................................ 17.6 28.0 34.6 New Zealand................... . , 13.6 16.7 17 5 15.4 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 Table 3. Data 8 Included with Belgium. exclude also U.S. Treasury letters of credit and non-negotiable, non­ interest-bearing special U.S. notes held by the Inter-American Develop­ Note.—Short-term liabilities are principally deposits (demand and ment Rank and the International Development Association. time) and U.S. Govt, securities maturing in not more than 1 year from For data on long-term liabilities, see Table 14. 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks, official and international institutions1 To all other foreigners Payable End of period Total in foreign Deposits U.S. Deposits U.S. currencies Total T bi r l e ls a s a u n r d y Other 3 Total T bi r l e ls a s a u n r d y Other 3 Demand Time 2 certificates Demand Time 2 certificates 1966.................................. 27,599 23,266 8,371 4,050 7,464 3,381 3,744 1 ,513 1,819 83 329 589 1967—May....................... 27,354 23,008 7,656 3 479 8,253 3,621 3,823 1 578 1 ,855 86 305 522 June....................... 27’337 23’016 7,874 3 ,61 7 7*866 3’659 3’825 I ,615 1 ,844 68 297 496 July...................... 27’795 23 ’479 8 214 3,750 7’891 3,624 3'812 1 ,580 1 '871 66 296 503 Aug........................ 28385 24’222 8,915 3,746 7,896 3,’665 3’831 1,515 I ,916 69 331 432 Sept................ 28’813 24’527 9,044 3^810 8,035 3,639 3'907 1 ,579 1 ’937 76 315 379 Oct......................... 29,914 25’650 9 846 3,966 8,117 3,722 3,983 1 577 1 ,999 84 322 282 Nov.......... 31,212 26’904 9,994 3 ,864 9,444 3 ,’602 4,077 1 ,630 2,036 76 335 231 Dec. 4................... / 30’,684 26329 ib^ou 3,774 9’,093 3,408 4'126 1 1693 2.052 81 301 229 r (30,546 r26,189 9,883 3 ,763 9,093 '3,450 4,128 1 ,693 2,057 81 297 229 1968—Jan......................... r30,700 r26,363 10 144 3 ,689 8,867 r3,663 4,046 1 576 2,083 103 283 291 Feb........................ r30,947 '26,549 10*203 3,610 8 943 '3,793 4,091 1 ’581 2,090 104 315 308 Mar....................... 30^097 25 ^688 10*487 3,472 8 ,098 3’631 4’085 1 585 2,055 101 344 323 Apr.................... 30,600 26,221 10 750 3,540 8 047 3 885 4'080 1 ,607 2'059 86 327 299 May-”..................... 30,763 26,389 11*914 3,433 7,082 3,960 4,054 1,582 2,048 87 337 320 1 Data exclude “holdings of dollars” of the International Monetary 4 Data on the two lines shown for this date differ because of changes in Eund. . , , reporting coverage. Figures on the first line are comparable in coverage 2 Excludes negotiable time certificates of deposit, which are included with those shown for the preceding date; figures on the second line are in “Other.*’ comparable with those shown for the following date. 3 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

/-\—/ o ihil. k>MFimu i nmwrtky i ivino vr inn u,o. u juli i^uo 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1967 1968 Area and country 1966 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr J' May11 Europe: Austria............................ 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Denmark......................... 13 12 12 12 12 12 12 12 12 12 12 12 12 11 France............................. 7 7 7 6 6 6 7 7 7 7 7 7 7 7 Germany....................... I 1 1 1 1 1 2 2 2 2 2 2 Italy................................ 2 2 9 9 9 9 9 9 9 9 6 6 6 6 Netherlands.................... 5 5 4 4 4 4 5 5 5 4 4 4 4 4 Norway.......................... 51 51 51 51 51 51 51 51 51 51 49 49 49 46 Spain................................ 2 2 2 2 2 2 2 2 2 2 2 2 I 1 Sweden............................ 24 24 24 24 24 24 24 24 24 24 24 24 26 26 Switzerland..................... 93 91 90 88 87 87 91 91 91 91 92 91 9! 92 United Kingdom............ 348 359 364 368 375 379 383 371 380 390 415 423 43! 427 Other Western Europe.... 49 50 50 50 51 51 51 51 51 51 51 38 38 39 Eastern Europe.............. 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Total 605 613 624 626 633 637 646 634 643 652 674 669 677 671 Canada 692 719 716 717 717 718 716 715 716 527 463 378 377 377 Latin America: Latin American republics.. 8 7 6 6 6 6 6 6 6 6 6 5 5 5 Other Latin America......... 19 18 18 18 18 18 18 18 18 20 20 20 19 19 Total 25 24 24 24 24 24 24 24 24 25 26 25 24 25 Asia: Japan....... 9 9 9 9 9 9 9 9 9 9 9 9 9 10 Other Asia 42 53 53 54 54 54 54 54 54 54 54 54 54 54 Total 50 62 62 63 63 63 63 63 63 63 62 63 63 63 Africa 15 28 28 28 22 22 22 19 19 19 19 19 19 19 Other countries 1 1 1 Total foreign countries, 1,388 1,446 1,455 1,458 1,459 1,463 1,472 1 ,455 1,466 1,287 1,245 1,153 1,161 1,156 International and regional: International................. 250 172 172 169 169 169 169 169 168 168 168 168 168 129 Latin American regional... 75 61 57 58 38 38 38 35 35 36 36 36 36 37 Other regional............... 1 1 1 1 1 1 1 I 1 1 1 1 1 Total 325 234 230 227 207 207 207 204 204 204 205 205 205 166 Grand total 1,713 1,680 1,685 1,685 1,666 1,671 1,679 1,659 1,670 1,491 1,450 1,358 1,366 1,322 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 Switzer­ Total Belgium Canada 1 Denmark Italy2 Sweden Total Austria Belgium Germany J Italy land B.I.S. I 964. I .440 354 329 25 1 ,086 50 30 679 257 70 1965. 1 ,692 484 299 160 25 1 ,208 101 30 602 257 93 1966. 695 353 144 184 25 342 25 30 50 125 1967—June. 809 349 144 180 25 460 151 125 159 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 (25 (59 Oct.., 1 ,483 546 344 178 25 937 50 551 125 211 Nov.. 1,563 516 314 177 25 I ,047 50 60 601 125 Dec.. 1 ,563 516 314 177 25 1 .047 50 60 601 125 211 1968—Jan.. 1,484 312 173 25 1,172 50 60 726 125 211 Feb.. 1 ,479 307 168 25 1,172 50 60 726 125 211 Mar.. 1 ,879 606 414 167 25 1 ,272 50 60 726 125 311 Apr.. 2.002 604 414 165 25 I ,398 50 60 852 125 311 May. 2,302 904 714 165 25 I ,398 50 60 852 125 311 June. 2,506 1,108 12 914 10 147 25 1 ,398 50 60 852 125 311 1 Includes bonds issued to the Government of Canada in connection 2 Bonds issued to the Government of Italy in connection with mili­ with transactions under the Columbia River treaty. Amounts outstanding tary purchases in the United States were $204 million, Sept. 1964 through Oct. 1965; $174 million, Nov. 1965 In addition, nonmarketable U.S. Treasury notes amounting to $125 through Oct. 1966; $144 million, Nov. 1966 through Oct. 1967; and $114 million equivalent were issued to a group of German commercial banks million, Nov. 1967 through latest date. in June 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-79 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 ica Asia Africa co O un th tr e ie r s 1964................................................................................. 7,957 * 1,230 1,004 2 235 3 ,294 131 64 1965 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 6 7 7 1966 1............................................................................ J (7 7 , . 8 8 5 1 3 9 1 I 1 1 , , 3 3 6 7 6 4 6 61 2 1 0 2 2, , 4 4 5 8 3 9 3 3 , , 1 2 3 0 5 6 1 1 4 47 7 6 62 2 1967—May..................................................................... 8 111 1 1,307 594 2,516 3,497 133 63 June,............................................................. 8 261 1 1 288 592 2’544 3,640 127 71 July....................................................................... 8'232 ♦ 1 ,’258 596 2,574 3^612 117 74 Aug..................................................................... 8 282 1 ,342 602 2^587 3,560 119 71 Sept....................................................................... 8 338 * 1 ,316 564 2,579 3^692 115 71 Oct....................................................................... 8 267 * 1,260 572 2^554 3,704 108 70 Nov..................................................................... 8,360 * I ^224 564 2^603 3^791 107 71 Dec 1................................................................. J (8 8 , . 6 5 1 9 1 7 * * 1 1 , ^ 2 2 3 32 6 6 6 1 1 1 1 2 2, ; 7 7 0 0 9 9 3 3 ^ ,8 8 8 7 5 5 1 1 0 0 2 2 6 67 7 1968—-Jan............................................................ 8 442 * 1,136 554 2,692 3,889 101 70 Feb,..................................................................... 8 538 1 ' 133 547 2’723 3'947 117 71 Mar....................................................................... 8,397 * 1 ’060 527 2^702 3,'934 106 68 Apr. .............................................. 8,398 1,101 510 2,699 3,918 105 65 May?................................................................. 8,359 * ।; 166 490 2,691 3‘,827 116 68 12a. Europe Bel­ End of period Total A tr u ia s­ L b g o u iu x u m e rg m - 2 ­ D m e ar n k ­ l F a i n n d ­ France G Fe e d r o m . f R an ep y . , Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o g r a ­ l Spain S d w en e­ 1964................................ 1,230 11 48 26 84 81 152 10 114 36 43 23 40 49 1965 1............................. [1,2 2 0 01 8 8 8 5 5 2 2 3 3 7 7 8 8 7 7 7 7 2 2 1 1 9 9 0 0 1 1 3 3 1 1 1 1 0 0 3 38 8 5 5 1 1 2 2 6 6 5 5 0 0 5 5 2 2 fl ,366 16 67 62 91 73 215 16 108 40 76 41 67 74 1966 1........................ (1.374 16 67 62 91 74 227 16 110 40 76 41 67 75 1967—May..................... 1,307 18 67 34 100 68 192 17 75 34 60 34 71 73 June..................... 1,288 17 65 40 101 71 188 14 68 29 44 28 72 75 July...................... 1,258 13 61 37 97 75 198 15 68 31 50 27 68 62 Aug...................... 1,342 16 65 37 93 74 184 15 61 30 51 26 61 68 Sept...................... 1,316 24 66 33 90 79 189 18 57 36 52 26 53 65 Oct................ 1,260 10 72 36 85 60 198 20 79 31 52 24 56 71 Nov...................... 1,224 10 63 48 83 82 174 18 69 49 57 14 53 67 Dec. 1................ / [1 I , , 2 3 3 3 6 2 1 1 7 6 8 6 3 6 3 3 7 7 7 7 8 8 8 8 8 8 1 1 7 7 9 6 1 1 9 9 5 5 8 8 3 3 5 5 6 6 1 1 2 26 6 5 5 4 4 7 7 5 5 1968—Jan........................ 1,136 9 57 34 78 60 151 19 51 38 61 22 54 65 Feb....................... 1,133 9 64 32 77 74 140 19 55 37 55 19 53 58 Mar,.................... 1 ;o6o 7 58 39 77 59 116 14 58 31 55 16 76 59 Apr. p .......... 1,101 7 57 30 77 66 1 13 17 65 38 59 16 73 61 Mayp................... 1,166 8 62 38 71 83 100 17 72 42 55 17 50 62 12a. Europe—Continued 12b. Latin America End of period S l w a e n r it ­ d z­ T k u ey r­ U K d n i o i n m t g ed ­ Y sl u av g i o a ­ E W O u e r t s o h t p e er r e n 3 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 1964................................ Hl 37 310 16 20 20 2,235 203 126 176 338 17 644 (73 42 210 28 28 6 27 2,288 232 94 174 270 16 669 1965 1............................. l73 42 216 28 28 6 27 2,293 232 94 174 270 16 674 183 52 210 19 37 2 16 2,489 193 114 159 308 16 767 1966 1............................. 188 52 193 19 40 2 16 2,453 187 112 158 305 16 757 1967—May............ 85 37 267 24 32 * 21 2,516 175 123 153 232 16 877 June..................... 86 38 274 24 31 1 22 2,544 185 116 155 223 16 861 July...................... 103 39 235 25 33 * 22 2,574 185 115 161 239 16 913 Aug...................... 119 47 321 22 28 * 24 2,587 185 117 160 242 16 943 Sept...................... 111 49 289 23 36 2 20 2,579 189 118 170 244 16 944 Oct....................... 118 34 242 19 33 19 2,554 199 124 172 227 16 929 Nov...................... 110 23 232 19 34 * 19 2,603 208 136 175 227 16 910 Dec. 1.................. J 1 9 9 8 8 3 3 8 8 2 2 4 4 2 2 1 1 3 3 3 1 0 3 3 3 1 1 8 8 2 2 , , 7 7 0 0 9 9 2 2 2 2 1 1 1 1 7 7 3 3 1 1 7 79 9 2 2 1 1 7 7 1 1 6 6 9 9 6 6 0 0 1968—Jan....................... 106 37 230 15 24 3 21 2,692 218 197 195 201 15 954 Feb....................... 106 37 249 15 11 2 20 2,723 227 221 185 193 15 994 Mar...................... 76 28 241 15 11 1 23 2,702 198 213 187 190 15 1,010 Apr, p .................. 93 33 238 17 12 3 25 2,699 208 233 180 188 15 983 May?................... 104 34 288 19 It 2 31 2,691 210 249 161 190 15 975 For notes see the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-bU UN IL. UAHI I AL I KAIN5AU IIUINS Uh I HL U.S. ° JULY iybS 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 E pe n r d io o d f Panama Peru g U u r a u y ­ V zu e e n l e a ­ r O l e L i p c t . h s A u e b . r ­ m B B m a u & e a h d r s a a ­ ­ A N S n n u a e t & i m t r l h i l ­ e . s A O L m i a t c h t a e i e n r r ­ Total C M la h a n i i n d n a ­ K H o o n n g g India I n n e d si o a ­ Israel 1964.................. 49 108 78 168 224 65 18 21 3,294 2 28 21 7 47 1965i............... / ( 5 5 9 9 1 1 7 7 0 0 4 45 5 2 22 2 0 0 2 2 5 5 0 0 5 53 3 1 1 4 4 2 2 3 3 3 3 , , 3 3 4 5 3 8 1 2 29 9 1 1 7 7 2 2 8 86 6 19661............... 211 45 226 272 61 18 17 3,135 I 31 16 6 98 185 212 45 220 261 61 18 16 3,206 1 31 16 6 98 1967-May.... 75 262 60 217 241 51 18 16 3,497 1 35 14 5 94 June.... 68 285 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 1 36 12 5 59 Oct........ 53 236 43 211 266 49 9 19 3,704 I 36 11 6 59 Nov....... 55 248 46 211 288 54 10 20 3,791 2 29 11 6 58 I47 249 42 226 289 63 10 18 3,875 I 28 10 5 57 147 249 42 226 289 63 10 18 3,885 I 30 10 5 57 1968—Jan. .... 52 248 40 224 266 53 10 19 3,889 1 28 14 5 50 Feb....... 52 246 38 228 252 46 10 18 3,947 I 30 12 9 46 Mar....... 53 233 40 221 254 62 9 18 3,934 1 30 12 9 47 Apr.p... 52 230 35 214 261 71 10 19 3,918 1 27 15 10 51 Mayp. .. 50 229 30 211 265 77 11 19 3,827 1 30 12 10 54 12c. Asia—Continued 12d. Africa 12e. Other countries End of period Japan Korea P p h in il e ip s ­ T w a a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) Mo co roc­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total A t l r i u a a s ­ ­ o A th ll e r 1964......................... 2,810 21 203 9 65 82 131 1 2 20 42 67 64 48 16 19651,...................... j 1 2 2 , , 7 7 5 6 1 8 2 22 2 2 2 3 3 1 0 1 1 5 5 8 8 2 2 1 1 0 0 7 8 1 1 3 3 9 9 1 1 2 2 3 3 4 4 4 4 3 3 6 60 0 6 6 7 7 5 52 2 1 1 5 5 19661........................ ) 1 2 2 , . 5 5 0 7 2 2 3 3 1 1 2 2 2 2 0 0 1 15 4 8 8 1 1 1 13 3 5 4 1 1 4 4 7 7 1 1 2 2 5 5 0 0 2 2 5 5 6 6 9 9 6 6 2 2 5 5 2 2 1 1 0 0 1967—May.............. 2,828 44 250 30 83 114 133 * 5 34 31 63 63 52 11 June.............. 2,939 49 270 27 87 122 127 1 2 30 27 66 71 60 12 July............... 2,909 55 289 29 81 116 117 I 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 2 35 18 53 70 57 13 Nov......... 3,062 46 326 31 90 131 107 1 2 37 14 54 71 58 13 Dec. t............ 1 \3 3 , , 1 1 5 4 4 7 5 5 9 9 2 2 9 9 5 6 3 3 7 7 1 1 0 0 0 0 1 1 3 3 7 7 1 1 0 0 2 2 I 1 2 2 3 3 7 7 1 11 1 5 5 2 2 6 6 7 7 5 54 4 1 1 3 3 iggg—jan................ 3,181 48 290 41 105 125 101 ( 2 37 12 49 70 58 13 Feb................ 3,212 52 305 44 107 128 117 J 3 39 11 64 71 59 12 Mar............... 3,213 54 305 44 92 129 106 1 2 37 11 55 68 55 13 Apr,p............ 3,223 54 279 42 90 127 105 2 3 39 14 46 65 53 12 Mayp....... 3,104 61 293 41 93 128 116 4 5 40 16 50 68 54 14 i Data on the two lines shown for this date differ because of changes in Note.—Short-term claims are principally the following items payable reporting coverage. Figures on the first line are comparable in coverage on demand or with a contractual maturity of not more than 1 year: loans with those shown for the preceding date; figures on the second line are made to, and acceptances made for, foreigners; drafts drawn against comparable with those shown for the following date. foreigners, where collection is being made by banks and bankers for 2 Through the first line for Dec. 1967 Luxembourg was included in their own account or for account of their customers in the United States; Other Western Europe. t a h n e d i r f c o u re s i t g o n m e c r u s r r i e n n c th y e b U al n a i n t c e e d s S h t e a l t d e s. a br E o x a c d l u b d y e s b f a o n r k e s ig n a n c d u r b re a n n c k i e e r s s h a e n l d d 3 Beginning with the second line for Dec. 1967 excludes Luxembourg. by U.S. monetary authorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-81 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in mitlions of dollars) Payable in dollars Payable in foreign currencies Loans to— Accept­ Foreign End of period Total C ti o o l n le s c­ m an a c d e e s Deposits g c o u v ri t t , i e s s e , ­ Total Total O i t n i f s o f t i n i c t i s u a 1 ­ l Banks Others s o t i a n u n g t d ­ ­ f o e o i f r g n f a o e c r r c s ­ t, Other Total w e i i t g h n f e o rs r­ a n c n a o d n m c f l e . i ­ Other paper 1964............................. 7,957 7,333 2,773 221 1,403 1,150 1,135 2,621 803 624 336 187 102 [7,632 7,158 2,967 271 1 ,566 1,130 1,268 2,501 422 474 325 54 95 1965 2.............. 17,734 7,243 2,970 271 1 ,567 1,132 1,272 2,508 492 492 329 68 96 1966 2........................... [ ( 7 7 , , 8 8 1 53 9 7 7 , , 3 4 9 3 9 3 3 3, , 1 1 4 3 1 8 2 2 5 56 6 1 1 , , 7 7 3 3 9 9 1 1 , , 1 14 4 3 5 1 1 , , 3 2 6 8 7 8 2 2 , , 4 5 5 4 0 0 4 4 4 6 3 4 4 4 2 20 0 2 24 4 1 0 7 70 0 1 1 1 1 0 0 1967—May................... 8,111 7,698 2,928 246 1,557 1,125 1 ,385 2,914 471 413 263 62 89 June.................. 8,261 7,862 2,917 253 1 ,553 1,111 1,430 3,028 487 400 262 54 83 July................... 8,232 7,817 2^871 261 1,482 1,127 1 ,430 3,039 478 415 281 57 78 Aug................... 8,282 7,771 2,918 287 1 '497 1,134 1 ,440 2,944 470 510 368 70 73 Sept................... 8'338 7,916 3,046 271 1,595 1’181 1,452 2,929 489 422 291 48 83 Oct....... 8,267 7^834 2'977 270 1,556 1,152 1 ,456 2,899 502 433 293 61 79 Nov................... 8'360 7^950 3'033 264 1,566 1,204 1 ,508 2,942 467 410 269 71 70 Dec.2......... [ ( 8 8 , , 5 61 9 7 I 8 8 , , 1 1 7 8 3 7 3 3, , 1 1 5 6 1 4 3 3 0 0 6 6 1 1 , , 6 6 0 1 3 6 1 1 , , 2 2 4 4 2 2 1 1 , ,5 5 1 5 1 2 3 3 , , 0 0 1 1 6 6 4 4 5 9 5 6 4 4 2 2 5 5 2 2 8 8 7 7 7 7 4 4 6 6 3 3 1968—Jan..................... 8,442 8,039 3,077 293 1,557 1,227 1 ,560 3,029 374 403 261 70 72 Feb.................... 8,538 8,172 3'170 303 1 ,652 1,215 1,628 2,982 392 366 254 55 57 Mar................. 8^397 8^072 3,048 306 1 ,527 1,216 1 ,630 2,995 399 325 219 50 56 Apr.^................ 8,398 8,051 3,036 276 1 ;565 1,194 1,612 3,020 383 347 240 50 57 May”................ 8 J 359 8^029 3,088 269 I ^620 1,199 1,610 2,902 429 330 230 48 52 i Includes central banks. 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 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area Inter­ End of period Foreign national Payable in dollars Payable Total c t o ri u e n s ­ reg a i n o d n al Total Loans o A th l e l r f r o e c n r i u e c n r i i g ­ e n s U K d n i o n 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 c O r o i t e u h s n e r ­ 1 1964................. 310 204 106 4,285 3,995 288 1 87 I ,632 327 1,275 430 255 278 1965................. 513 203 311 4,517 4,211 297 9 86 I ,506 358 1,296 445 391 436 1966................. 1,494 988 506 4,180 3,915 247 18 70 1 ,143 326 1,346 326 409 562 1967-—May.... 2,017 1 ,425 592 3,996 3,747 232 17 65 1 ,024 329 1,309 263 385 621 June... . 2,472 1 ,872 600 3,839 3,585 237 17 40 931 333 1,349 195 381 610 July. .. . 2,458 1 ,854 604 3,843 3,588 238 17 48 952 355 1,410 185 393 500 Aug..... 2,524 1 ,882 642 3,894 3,635 242 17 51 942 352 1 ,455 176 396 522 Sept.... 2,314 1 ,660 654 3,911 3,623 268 19 52 909 364 1 ,500 171 395 520 Oct........ 2,284 1 ,654 630 3,980 3,694 271 15 52 856 377 1 ,534 204 408 549 Nov...... 2,345 I ,681 664 3,961 3,677 267 17 51 825 377 1 ,555 193 416 545 Dec....... '2,501 '1 ,808 ’•693 3,895 3,621 258 15 56 720 413 1 ,556 180 433 537 1968-—Jan........ 2,503 1 ,815 688 3,833 3,574 247 12 57 708 416 1 ,514 176 430 533 Feb..... 2,520 1 ,835 684 3,767 3,517 240 10 55 684 400 1 ,474 175 442 539 Mar...... 2,555 I ,917 638 3,693 3,444 238 11 54 671 401 1 ,438 172 448 509 Apr.”,.. 2,596 1 ,967 629 3,756 3,494 252 11 65 66t 421 1 ,450 164 476 519 Mayp... 2,689 2,009 680 3,712 3,420 281 1 1 65 632 415 1,446 154 487 514 1 Includes Africa. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-bZ IINIL. UAHIAL I KAINbAUI IUINO Uh I Mt U.b. □ JULY UW 15. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) (U.S. corporate Marketable U.S Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases ar sales Period Pur­ Net pur­ Pur­ Net pur­ Pur­ Net pur­ Inti. Foreign chases Sales chases or chases Sales chases or chases Sales chases or 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 ’’10,272 '9,205 '1 ,067 2,026 '3,191 '-I ,165 880 1 ,037 -157 1967—May. 17 1 16 16 915 760 156 127 '170 '-43 68 65 3 June. 5 -3 9 -3 12 926 821 105 248 309 -61 71 95 -24 July. -3 3 3 943 740 203 145 '316 '-171 68 69 — I Aug. -19 -20 1 -6 7 877 793 84 147 225 -78 67 106 -39 Sept. 5 5 5 1,109 858 251 350 481 -131 81 125 -44 Oct.. 9 * 8 8 960 1,148 -188 195 '326 '-131 77 91 -14 Nov. -20 -4 -16 -3 -14 ’•883 '922 '-39 112 142 -30 75 89 -14 Dec. 10 * 10 10 ’1,034 ’’795 '240 122 266 -144 94 155 -61 1968—Jan... -178 1 -179 -191 13 '1,143 '854 '289 85 264 -179 68 79 -II Feb... -42 -42 -65 23 '1 ,027 '689 '339 157 '269 '-112 70 80 -10 Mar.. -92 * -92 -103 1 1 1 ,089 809 279 325 418 -93 IIO 148 -38 Apr,”, 8 * 8 8 1 ,274 996 278 165 362 -197 73 79 -6 May''. -44 -39 -5 -3 -2 1,748 1,313 434 315 195 120 87 1 10 -22 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to agencies and corporations that are not guaranteed by the United States. official institutions of foreign countries; see Table 11. 2 Includes State and local govt, securities, and securities of U.S. Govt- Note.—Statistics include transactions of international and regional organizations. 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 Swit­ United Latin Other Inti. Stocks Bonds France zer­ King­ Other Total Canada Amer­ Asia Africa coun­ and land dom Europe Europe ica tries regional 1964............. -173 -349 176 -37 -200 -4 14 -228 3 25 10 -1 18 1965............. -375 -413 38 14 14 -522 47 -446 42 -13 24 -4 2 21 1966............. 703 -333 1 ,036 37 65 -80 116 140 224 65 18 1 4 251 1967............. '1,067 '753 '3(3 182 '427 -452 '225 '381 305 1 15 79 34 17 136 1967—May.. 156 14 141 8 20 67 31 126 21 -4 3 10 -1 June.. 105 64 41 6 21 8 3 37 63 5 -2 1 July.. 203 87 1 15 61 56 -10 31 I 39 28 3 6 24 1 2 Aug. . 84 71 13 11 29 5 -4 41 25 9 ♦ 1 8 Sept. . 251 143 108 37 49 15 25 126 42 15 8 1 60 Oct.. . -188 58 -246 12 47 -302 28 -213 6 24 3 * -8 Nov.. '-39 '139 '-178 9 '55 -221 '37 '-120 49 8 11 H 3 Dec... '240 '158 '82 12 '87 13 29 '141 32 44 23 * 3 -4 1968—Jan.. . '289 '167 122 16 '98 7 66 '188 '62 16 5 3 1 14 Feb... '339 '78 261 33 '90 92 92 '308 '23 -5 5 8 Mar. . 279 247 32 10 34 7 268 319 29 -14 5 1 * -59 Apr.2’. 278 261 17 20 100 1 16 136 83 36 16 7 May”. 434 80 354 42 81 166 139 428 19 21 12 * I -46 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

JULY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-83 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) ToUl Period Total g I a i r n o n e t n ­ d i a , l c t e f o r i o i u g e r n n s ­ ­ r E o u pe ­ C a a d n a ­ A L i a m c t a i e n r­ Asia r A ic f a ­ O c t o r t i h u e e n s r ­ E pe n r d i o o d f Deposits U.S. A G ss o e v ts t . in 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.......-..9..5..3......-164 -788 108 -659 -55 -131 3 -54 1964............. 229 8,389 12,698 1966.......-..6..8..5......-171 -514 214 —726 -9 —7 16 -2 1965............. 150 8,272 12’896 1967................... r-1,322 -393 >■929 3 -771 38 -152 ’■-20 -27 1966............. 174 7,036 12,946 1967—M J J u u a n ly y e . . . . . . . . . . . . . . . . . . . . . . ’• ' - - - 1 4 8 7 0 5 3 - - 1 _ 1 4 9 '- ' 1 - - 3 7 5 9 6 9 2 2 11 2 7 -1 - - 2 4 1 3 5 7 -23 5 3 - - - 5 4 5 3 9 ' r - _ I 1 - - 1 1 8 0 2 1967—J J A u u u l n y g e . . . . . . . . 1 1 1 1 4 4 7 7 4 7 7 7 , , , 6 5 6 6 3 6 7 5 5 1 1 1 2 2 2 , , , 9 9 9 7 9 7 7 3 6 Aug..... -117 -43 -75 -23 -24 2 -31 -I 2 Sept... 117 7,558 12,992 Sept........ -175 -72 -103 -4 -101 3 5 -8 2 Oct.... 135 7,861 13,000 Oct......... '-144 13 r—157 7 -148 -6 -9 r-3 2 Nov... 168 9,456 13,032 N D o ec v . . . . . . . . . . . . . . . . -2 -4 0 4 5 -3 -4 7 -2 - 0 7 0 - - 6 4 2 -127 6 2 - - 1 1 1 4 * 2 * Dec... 135 9,223 13,253 1968—Jan.... 160 8,861 13,201 1968—J M F a e n a b r . . . . . . . . . . . . . . . . . . . . . . . . . . ’■ - - - 1 1 1 3 9 2 1 0 1 - -3 6 1 3 4 0 '- - 1 - 1 3 9 2 1 8 6 -2 -7 9 4 - - 1 1 1 - 1 9 2 6 -4 - -1 5 0 -1 -3 1 2 0 - '- 3 - 5 1 1 2 1 A F M e p a b r r . . . . . . . . . 1 1 1 9 4 9 7 0 2 8 8 8 , , , 4 7 9 1 6 2 8 3 2 1 1 1 3 3 3 , , , 2 6 4 3 1 6 2 4 6 A M p a r y ? 1 ’ ’ . . . . . .. . -20 9 2 7 - 1 5 3 4 7 -1 -3 4 9 9 -12 7 -1 -3 4 7 8 - - 8 6 - 1 2 8 -4 2 1 J M u a n y e . . . . 4 1 2 5 2 3 7 8 , , 6 32 7 8 6 1 1 3 3 , , 6 2 4 3 5 2 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. 19. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES (In millions of dollars) Wednesday Amount Wednesday Amount Wednesday Amount Wednesday Amount 1964 1966 1967 1967 1,040 1,688 May 3........................... 2,843 4,480 Feb. 26........................... 1,077 Feb. 23........................... 1,902 ' 10........2...,.7..9..0........... 13........................... 4’634 Mar. 25.......................... 1,046 Mar. 30........................... 1 ,879 17........................... 2,950 20........................... 4,365 24........................... 3,254 27........................... 4,241 Apr. 29........................... 1,146 Apr. 27........................... 1 ,909 31........................... 2,776 May 27.......................... 1,132 May 25........................... 2,003 June 24.......................... '917 June 29.......................... t ,951 3,059 1968 14........................... 2,991 July 29.......................... 1,008 July 27........................... 2,786 21........................... 3,215 4,157 Aug. 26............... 1,166 3,134 28........................... 3,166 31.........4..,.0..9..2......... 1,166 3 372 10........................... 4^289 July 5........................... 3,078 17........................... 4^367 Oct. 28.......................... 1,198 3,671 ' 12........................... 3,304 24........................... 4.516 Nov. 25.......................... 1,380 Nov. 30........................... 3 ’786 19........................... 3'558 31........................... 4,259 Dec. 30.......................... 1,183 Dec. 28........................... 4,036 26........................... 3,660 Feb. 7........................... 4,352 3,370 14........................... 4 474 1965 1967 “ 9........................... 3,669 21........................... <739 16.......................... 3,877 28........................... 4,530 Jan. 27.......................... 1,358 Jan, 25........................... 3,653 23........................... 4'031 Feb. 24.......................... t'592 30........................... 3’976 4,513 Mar. 31........................... 1 ',431 Feb, 1........................... 3,217 13........................... 4 805 8........................... 3,422 3,848 20........................... 4^430 Apr. 28.......................... 1,433 15........................... 3'376 ‘ 13........................... 3'840 27........................... 4,920 1,432 22........................... 3,396 20........................... 3,930 June 30.......................... 1 336 27........................... 4,059 4,768 3,382 ‘ 10........4...,.6..0..6........... July 28.......................... 1 ,572 8......................... . 3 364 Oct. 4........................... 4,047 17........................... 4 845 Aug. 25.......................... 1,792 15........................... 3,367 11........................... 4,293 24........................... 5,020 Sept. 29.......................... 1’611 22............................ 3,372 18........................... 4'235 29............................ 3312 25........................... 4^322 4,784 Oct. 27.......................... 1,719 ' 8.........5..,.2..3..5........... Nov. 24.......................... 1 ,697 3.201 Nov. 1........................... 4,320 15........................... 5,426 Dec. 29.......................... 1,345 ’ 12............................ 3,064 8........4...'5..6...0........... 22........................... 5^968 19........................... 3,137 15........................... 4,623 29........................... 5,888 26.......................... 3,047 22........................... 4,864 29.......................... 4,206 1 Break in series; see Note. have occurred that affect the comparability of the data. Where such changes are known to have been significant, two figures for the same date Note.'—'The data represent gross liabilities of reporting banks to their are given; the first is comparable with the data that precede it, and the branches in foreign countries. Certain changes in coverage and definitions second with the data that follow. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

UHL.. cyni i J ou i I\ni ^ ^JOky I lUHNO UI I I IL U.O. ^ JULI l^UO 20. 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 Dec. Mar. June Sept. Dec?' Dec. Mar. June Sept. Dec.P Europe: Austria................................................ 2 2 2 2 2 8 8 9 7 8 Belgium.................................................. 32 34 28 32 26 53 63 39 45 42 Denmark................................................ 3 5 8 8 7 14 11 10 9 11 Finland.................................................. 1 1 2 2 3 4 4 5 6 6 France.......... *............................ 62 61 55 61 64 110 122 102 99 111 Germany, Fed. Rep. of......................... 78 81 85 94 92 127 122 122 115 138 Greece.................................................... 2 2 2 3 8 15 17 18 20 20 Italy........................................................ 54 62 65 66 61 101 98 80 93 103 Netherlands........................................... 68 80 78 82 79 48 45 47 45 51 Norway.................................................. 2 2 3 3 4 8 7 7 8 8 Portugal.................................................. 9 7 5 6 6 7 6 7 6 7 Spain...................................................... 27 30 36 35 31 61 76 62 77 90 Sweden.................................................. 17 19 21 24 24 36 18 18 20 24 Switzerland............................................ 58 47 51 84 86 18 26 24 24 29 Turkey.................................................... 2 2 2 2 3 6 7 9 7 9 United Kingdom.................................. 208 236 234 312 306 579 646 577 542 690 Yugoslavia............................................. 1 1 * 1 * 4 4 3 3 4 Other Western Europe......................... 4 5 5 3 4 11 12 13 13 14 Eastern Europe............................... 1 1 1 1 1 2 3 5 4 8 Total............................................... 631 678 682 820 807 1,212 1,296 1,158 1,141 1,373 Canada....................................................... 146 173 199 190 200 489 482 494 461 545 Latin America: Argentina........................................... 6 3 4 4 4 39 39 35 29 29 Brazil...................................................... 10 11 10 10 9 65 61 60 75 85 Chile....................................................... 4 5 6 7 8 32 30 31 26 34 Colombia............................................ 7 5 9 13 9 25 24 24 20 22 Cuba....................................................... * * 3 2 2 2 2 Mexico.................................................... 11 16 16 12 10 95 96 125 118 114 Panama.................................................. 10 4 3 2 4 12 11 10 14 14 Peru........................................................ 7 6 5 7 6 31 31 29 32 29 Uruguay................................................. 1 1 1 1 7 7 9 6 5 Venezuela............................................... 36 38 37 36 33 62 56 53 54 59 Other L.A, republics............................. 20 15 17 19 23 60 62 56 59 60 Bahamas and Bermuda......................... 3 7 5 4 8 18 12 21 25 25 Neth. Antilles & Surinam..................... 7 6 8 5 5 4 5 5 5 7 Other Latin America............................. 1 1 1 I 10 9 10 7 10 Total..................................... 124 118 122 122 121 463 445 469 473 492 Asia: Hong Kong.......................................... 3 4 4 4 5 7 7 9 11 9 India..................................................... 17 13 15 12 12 34 33 35 39 43 Indonesia................................................ 2 2 4 5 4 7 5 5 3 3 Israel....................................................... 2 1 1 3 5 5 4 5 6 Japan...................................................... 27 30 38 44 62 164 163 179 195 213 Korea...................................................... 3 2 2 1 1 5 7 6 8 9 Philippines............................................ 7 6 7 7 7 17 17 23 22 30 Taiwan.................................................. 4 5 2 1 5 7 12 10 10 11 Thailand................................................. 4 4 4 5 5 11 10 8 10 10 Other Asia........................................... 31 41 39 45 46 75 88 79 78 89 Total............................................... too 107 114 126 150 331 346 357 380 422 Africa: Congo (Kinshasa)................................. 1 1 1 1 * 2 2 2 2 3 South Africa.......................................... 17 5 8 7 8 24 16 16 14 14 U.A.R. (Egypt)..................................... 1 2 2 3 3 11 9 7 7 7 Other Africa.......................................... 6 7 8 11 12 32 35 32 31 34 Total............................................ 24 15 19 21 23 69 62 58 54 58 Other countries: Australia............................. 58 52 49 61 58 58 54 44 44 57 All other................................................ 6 6 7 8 7 8 8 6 7 7 Total.............................................. 64 58 56 70 65 66 61 50 50 64 International and regional...................... ♦ * ★ * * ♦ * * 1 * Grand total.................................... 1,089 1,148 1,193 1,349 1,367 2,631 2,692 2,587 2,560 2,955 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

JULY 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-85 21. 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 cu P f r o a r r y e i e n a n i b g c l n i e e s Total P d a o y i l n a la b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter’s name 1963—Dec.................................................................................... 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 June1................................................................................. 585 441 144 2,430 1,952 219 260 Sept.................................................................................... 650 498 152 2,719 2,168 249 302 Dec.................................................................................... 695 553 141 2,776 2,306 189 281 Dec. 2................................................................................. 700 556 144 2’853 2,338 205 310 1965—Mar.................................................................................. 695 531 165 2,612 2,147 189 277 June................................................................................... 740 568 172 2'411 1^966 198 248 Sept.................................................................................. 779 585 195 2,406 1,949 190 267 Dec.................................................................................... 807 600 207 2,397 2 J 000 167 229 Dec. 2................................................................................. 810 600 210 2'299 1,911 166 222 1966—Mar................................................................................... 849 614 235 2,473 2,033 211 229 894 657 237 2'469 2'063 191 215 Sept................................................................................... 1,028 785 243 2,539 2,146 166 227 Dec................................................................................... l’,089 827 262 2',631 2,228 167 236 1967—Mar................................................................................... 1,148 864 285 2,692 2,249 192 252 June . ......................................................... 11193 906 287 2'587 2,112 199 275 Sept................................................................................... 1,349 1 ,025 324 2^560 2,122 192 246 Dec.’’....................................................................... 1,367 1 ,023 343 2,955 2,524 202 229 1 Includes reports from firms having $500,000 or more of liabilities or 2 Data differ from that shown for Dec. in line above because of changes of claims; for previous scries the exemption level was $100,000. in reporting coverage. 22. LONG TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (In millions of dollars) Claims Country or area Total End of period liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th ll e r America 1964—Dec........................ 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. t.......... 147 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar........................ 176 1,156 27 124 239 208 61 206 98 87 87 19 June....................... 188 1,207 27 167 251 205 61 217 90 90 86 14 Sept........................ 249 1,235 23 174 267 202 64 207 102 91. 90 14 Dec........................ 329 1,256 27 198 272 203 56 212 95 93 87 13 1967—Mar........................ 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 1,494 27 263 303 214 88 290 110 98 85 15 Sept........................ 415 1,452 40 212 309 212 84 283 109 103 87 13 Dec.*..................... 418 1,545 43 257 310 212 85 288 128 117 89 16 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

M—OO UULU tlCOCHVCO u JULT 1^00 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 S n ta i t t e e s d m res 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 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 1,45! 92 84 1,026 43 1965 . 243,230 31,869 13,806 27,285 35 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2,652 13,235 27,300 35 84 224 701 1,525 45 84 1,046 45 1967--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......... 42,955 2,679 13,077 27,200 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............... 41,600 2,682 12,065 26,855 33 84 231 701 1 ,480 45 84 1,015 45 1968--Jan................. 2,684 12,003 33 84 233 701 1,460 45 84 1,025 45 Feb................ 2,699 11,900 33 84 234 701 1 ,454 45 84 1,026 42 Mar............... MO, 240 2,711 10,703 i’26,825 33 84 233 701 1 ,418 45 84 976 45 Apr............... 2,727 10,547 33 84 232 701 1 ,450 84 976 45 May.............. 2,735 10,468 33 84 235 701 1 ,450 84 926 44 Ger­ E pe n r d i o 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 1961. 88 107 47 2,121 3,664 87 247 43 130 84 10 2,225 287 1962. 57 92 61 2,587 3,679 77 247 44 129 98 41 2,243 289 1963. 62 92 61 3,175 3,843 77 247 35 142 98 60 2,343 289 1964......................... 58 92 85 3,729 4,248 77 247 141 112 56 2,107 304 1965. 35 97 84 4,706 4,410 78 281 146 110 56 2,404 328 1966. 26 108 45 5,238 4,292 120 243 130 106 46 2,414 329 1967--May.............. 29 108 48 5,241 4,294 132 243 145 106 2,416 June.............. 29 108 47 5,235 4,292 149 243 145 94 2,412 330 July................ 29 108 47 5,233 4,285 150 243 ...........1.4..5 94 2,406 Aug................ 30 108 47 5,234 4,283 149 243 145 94 46 2,400 Sept............... 30 108 47 5,234 4,284 130 243 145 94 46 2,401 335 Oct................ 31 108 47 5,234 4,281 132 243 145 94 46 2,398 Nov.............. 31 108 47 5,234 4,277 132 243 145 94 46 2,394 Dec................ 31 107 45 5,234 4,228 130 243 144 115 46 2,400 338 1968--Jan................. 32 107 45 5,234 4,140 131 243 144 151 46 2,364 Feb................ 32 107 45 5,234 4,125 130 243 143 151 46 2,368 Mar............... 32 107 45 5,235 3,972 134 243 166 165 46 2,376 341 Apr................ 32 107 46 5,235 3,972 138 243 166 209 46 2,401 May.............. 33 107 46 5,235 3,973 141 243 166 209 46 2,452 E pe n r d i o o d f Kuwait a L n e o b n ­ Libya M c e o xi­ Mo c r o oc­ N 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 i e li s p­ Po g r a t l u­ A S r a a u b d i i a 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. 67 193 68 109 21 1,730 20 18 53 65 44 643 69 1967--May............. 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............... 89 193 68 164 21 1,731 20 18 53 20 59 698 69 Dec................ 136 193 68 166 21 1,711 20 18 53 20 60 699 69 1968--Jan............... 134 193 68 164 21 1,682 20 IS 53 20 62 699 69 Feb................ 124 203 75 163 21 I ,677 20 18 53 20 63 711 69 Mar............... 125 267 85 156 21 1,654 1 1 18 54 20 64 711 69 Apr......... 127 267 85 21 1 ,654 20 18 54 20 65 711 69 May........ 131 267 85 ............2..1 1,655 20 18 54 20 67 ............6..9 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JULY. 1968 □ GOLD RESERVES AND PRODUCTION A-87 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E p n er d i o o d f S A o fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n i m t g ed ­ g U u r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l i e . ­ ments 4 1961............................. 298 316 180 2,560 43 104 139 174 2 268 180 401 6 115 1962.............................. 499 446 181 2,667 43 104 140 174 2,582 180 401 4 50 1963............................. 630 573 182 2,820 50 104 115 174 2,484 171 401 14 279 1964.............................. 574 616 189 2,725 55 104 104 139 2,136 171 401 17 50 1965.............................. 425 810 202 3’042 55 96 116 139 2,265 155 401 19 558 1966..........6..3..7.............7..8.5 203 2’842 62 92 102 93 1,940 146 401 21 4?-4 1967—May.................. 482 784 203 2,619 74 92 97 93 146 401 22 — 87 June......... 468 784 203 2,831 81 92 96 93 1,708 146 401 22 266 July.................... 493 784 203 2'844 81 92 96 93 146 401 21 271 Aug................... 487 784 203 2'843 81 92 96 93 146 401 22 375 Sept................... 489 785 203 2,841 81 92 97 93 1,831 146 401 22 364 Oct.................... 518 785 203 2’840 81 92 97 93 147 401 22 358 Nov,.......... 558 785 203 2’753 81 92 97 93 140 401 22 275 Dec.................... 583 785 203 3,'089 81 92 97 93 1,291 140 401 22 — 624 1968—Jan..................... 625 785 203 2,978 83 92 97 93 1 33 401 22 — 529 Feb.................... 691 785 203 2'793 83 92 97 93 1 33 401 21 — 406 Mar................... 742 785 203 2,603 81 92 97 93 1 ,493 1 33 401 22 — 345 Apr.................... 847 785 203 2'603 81 91 97 93 401 22 -331 May.................. 946 785 203 2,628 81 89 97 93 ..........4..0.1. 22 -326 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, centra! banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas; for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.c., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. _ This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics^ 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ A So fr u ic th a d R e h s o ia ­ Ghana C s ( h K o a n i s 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 ag ic u a a ­ Co b l i o a m­ India P p h in il e ip s ­ t A ra u l s ia ­ ot A h l e l r 1960............................. 1,175.0 748.4 19,6 30.8 H.l 58.8 162.0 10.5 7.0 15.2 5.6 14.4 38.0 53 6 1961............................. 1,215.0 803.0 20.1 29.2 8.1 54.8 156,6 9 4 7.9 14.0 5.5 14.8 37.7 539 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 35.8 643 1964............................. 1'405.0 1,018.9 20.1 30.3 6.6 51.4 133.0 7.4 7.9 12.8 5.2 14.9 33.7 62 8 1965............................. U440.0 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............................. 1,445,0 1,080.8 19.3 24.0 5.6 63.1 114.6 7.5 7.0 9. 8 4.2 15.8 32,0 61.3 1967............................. 1,068.7 26.7 5.4 103.7 6.2 9.0 1967-—Apr................... 89,1 8.9 .6 .8 1.4 2.6 91.2 8.9 .6 .8 ’1.5 2.3 June................ 89.1 9.1 .4 .8 2! .7 r1.5 2.6 July.................. 88.9 8.4 .4 .7 2.4 Aug................... 90.5 8.3 .4 .8 2.1 Sept.................. 90.5 8.0 .7 .8 3.9 34.2 2.2 Oct....... .... 84.1 8.6 .5 .7 2.7 Nov.................. 90.0 8.2 .8 2.4 Dec................... 88.5 8.7 .6 1968-—Jan................... 90.3 7.7 .9 Feb................... 90.0 7.7 .7 Mar................. 91.8 '8.3 Apr................... 91.8 8.2 i Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Data for Jan.-June. countries and Bureau of Mines. Data for the United States are from 3 Quarterly data. the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-dd IVIUINLY KAItS a JULY lybb CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months June 30, 1967 Rate Country 1967 1968 Ju a n s e o . f 3 0, Per Month 1968 cent effective July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Argentina.............................. 6.0 Dec. 1957 6.0 Austria............................ 4’25 Apr. 1967 3.75 3.75 Belgium................................. 4.5 May 1967 4.25 4.00 3.75 3.75 Brazil..................................... 12.0 12 0 Burma.................................. 4.0 Feb. 1962 4.0 Canada 1............................... 4.5 Apr. 1967 5.0 6.0 7.0 7.5 7.5 Ceylon................................... 5.0 May 1965 5.5 5.5 Chile 2................................. 15.84 July 1966 16.61 16.61 Colombia.......................... 8 0 May 1963 8 0 Costa Rica............................ 3 0 Apr. 1939 3.0 Denmark.. , . - -, ,.......... 6 5 7.5 7.0 6.5 6.5 Ecuador...................... 5.0 Nov. 1956 5.0 Rl Salvador........................... 4.0 4.0 Finland.............................. 7.0 Apr. 1962 7.0 France... ............. 3.5 3.5 Germany, Fed. Rep. of..... 3.0 May 1967 3.0 Ghana................................... 6.0 May 1967 5.5 5.5 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 5.0 5.0 Indonesia............................... 9.0 Aug. 1963 9.0 Iran......................,............... 5.0 5,0 Ireland................................... 3.50 June 1967 5.56 5.50 5.53 5.94 7.75 7.78 7.69 7.62 7.39 7.38 7.31 7,31 Israel. ................................... 6.0 Feb, 1955 6,0 Italy....................................... 3.5 June 1958 3.5 Jamaica................................ 5.0 May 1967 6.0 6.0 Tapan..................................... 5.48 June 1965 5.84 6.21 6,21 Korea............................ 28.0 Dec. 1965 28.0 Mexico.............................. 4 5 4.5 Netherlands. ................ 4 5 Mar. 1967 4.5 New Zealand , , .............. 7.0 Mar. 1961 7 0 Nicaragua ■. - 6 0 Apr. 1954 6,0 Norway ............ 35 Feb. 1955 3'5 Pakistan,,....,,................ 5^0 June 1965 5.0 Peru......... ................. 9.5 Nov. 1959 9.5 Philippine Republic . . 6.0 7.5 7.5 Portugal . ...... 2.5 Sept. 1965 2 5 South Africa 6.0 July 1966 6.0 Spain..................................... 4 0 June 1961 4.0 Sweden. ................ 5.0 Mar. 1967 6.0 5.5 5.5 Switzerland . . . 3 5 July 1966 3.0 3.0 Taiwan 4............................... 13,3 May 1967 13.3 Thailand . . 5 0 Oct 1959 5 0 Tunisia...................... 5.0 Sept. 1966 5.0 Turkey................................. 7.5 May 1961 7.5 United Arab Rep (Egypt).. 5 0 May 1962 5.0 United Kingdom ............. 5.5 May 1967 6.0 58,0 7.5 7.5 Venezuela r............ 4.5 Dec. 1960 4.5 1 On, June 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—-5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at for rediscounts in excess of an individual bank’s quota; the average rate charged by banks in the previous half year. Old redis­ Costa Rica—5 per cent for paper related to commercial transactions counts remain subject to old rates provided their amount is reduced by (rate shown is for agricultural and industrial paper); one-eighth each month beginning with May 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; 5 Effective Nov. 9 the rate was 6.5 per cent. Peru—8 per cent for agricultural, industrial, and mining paper; Philippines—4 per cent for financing the production, importation, and dis­ Note.—Rates shown are mainly those at which the central bank either tribution of rice and corn and 5.75 per cent for credits to enterprises en­ discounts or makes advances against eligible commercial paper and/or gaged in export activities. Preferential rates are also granted on credits to govt, securities for commercial banks or brokers. For countries with rural banks; more than one rate applicable to such discounts or advances, the rate Spain—4.6 per cent for financial paper rediscounted for banks (rate shown shown is the one at which it is understood the central bank transacts is for commercial bills); and the largest proportion of its credit operations. Other rates for some Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. of these countries follow: 1962), and 4 per cent for advances against govt, bonds, mortgages, or gold, Argentina—3 and 5 per cent for certain rural and industrial paper, de­ and for rediscounts of certain industrial paper, 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

JULY 1968 □ MONEY RATES; ARBITRAGE A-89 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n l s s u t , h ry s 1 D m a o d y n a - e y t y o 2 ­ 3 B a a m a c n n c o c k e n e p e s t r t h , ­ s s ’ T 3 r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e t o y ­ a B d ll e o a p n w o o k a n s e n i . r t c s s e ’ D m a o d y a n - y e t o y ­ 3 Tr 6 d b e 0 a i a y l - s l 9 s s u 0 , 4 r y D m a o d y n a - e y t y o ­ 5 3 T 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 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—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 J une............ 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 4.76 2.75 2.44 4.51 4.05 3.75 1968—Jan.............. 6.01 5.32 7.78 7.48 6.85 6.00 5.00 2.75 2.38 4.33 3.12 3.75 Feb............. 6.69 6.38 7.75 7.45 6.86 6.00 4.77 2.75 2.69 4.19 3.65 3.75 Mar........ 6.93 6.76 7.65 7.25 6.72 5.81 5.07 2.75 2.31 4.34 3.10 3.75 Apr........ 6.91 6.85 7.42 7.08 6.48 5.50 2.75 2.44 4.33 3.49 3.75 May............ 6.96 6.75 7.42 7.15 6.51 5.50 ............... 2.75 3.00 4.43 4.53 3.75 i Based on average yield of weekly tenders during month. 5 Based on average of lowest and highest quotation during month. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.— For description and back data, see “International Finance,’* 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date q K ( u U i a o n U d n t g j . i a S d t . t e o i . 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 r n ) P d f ( ( p r o i + e - s o r c m w ) u ) o n a i u o o u d r n n r m d t i L n ( o c f N e n a o n d v e f t o o t i v n r e ) qu A o in t s e d C ana q d u A a o U d t j a . . S ti t . o o n U St n a i t t e e s d C S ( a f p n a o r v a e f o d a d r a ) C P d f ( ( d a r o i + e - s o n r c m w ) l a ) l o d a i a u o o u r i r n n a s r m d t n . i C n ( c a f N e a n o n v a e f t o d t i v r a ) e basis) Canada basis 1968 Feb. 2.............. 7.38 4.81 2.57 -2.59 -.02 6.35 6.15 4.81 4-1.34 -1.20 + .14 9.............. 7.32 5.01 2.31 -2.60 -.29 6.65 6.40 5.01 + 1.39 -1.46 -.07 16.............. 7.21 4.93 2.28 -2.68 -.40 6.65 6.40 4.93 + 1.47 -1.28 + .19 23.............. 7,29 4.96 2,33 -2.86 -.53 6.74 6.54 4.96 4-1.58 -1.41 + .17 Mar. 1.............. 7.24 5.00 2.24 -3.09 -.85 6.75 6.60 5.00 4-1.60 -1.50 + .10 8.............. 7.15 5.06 2.09 -7.01 -4.92 6.82 6.61 5.06 4-1.55 -1.62 -.07 14.............. 7.15 5.33 1.82 -8.75 -6.93 6.88 6.65 5.33 4-1.32 -2.39 -1.07 22............. 7.00 5.21 1.79 -4.78 -2.99 6.99 6.78 5.21 + 1.57 -1.67 -.10 29.............. 6.95 5.14 1.81 -7.33 -5.52 6.96 6.75 5.14 4-1.61 -1.69 -.08 Apr, 5.............. 6.90 5.23 1.67 -4.83 -3.16 6.83 6.63 5.23 4-1.40 -1.51 -.11 11.............. 6.97 5.37 1,60 -4.33 -2.73 6.87 6.66 5.37 + 1.29 -1.38 -.09 19.............. 6.97 5.50 1.47 -3.83 -2.36 6,93 6.72 5.50 + 1.22 -1.47 -.25 26.............. 6.90 5.49 1.41 -4.53 -3.12 7.00 6.79 5.49 + 1.30 -1.53 -.23 May 3.............. 6.94 5.44 1,50 -4.06 -2.56 7.00 6.79 5.44 + 1.35 -1.62 -.27 10.............. 6.92 5.52 1 .40 -4.95 -3.55 6,92 6.71 5.52 + 1.19 -1.25 -.06 17.............. 6.94 5.75 1.19 -5.28 -4.09 6.93 6.72 5.75 + .97 -1.21 -.24 24.............. 7.03 5.70 1.33 -6.10 -4.77 6.97 6.76 5.70 + 1.06 -1.38 -.32 31.............. 7.06 5.65 1.41 -6.79 -5.38 6.94 6.73 5.65 + 1.08 -1.36 -.28 June 7... ..... 7.03 5.62 1.41 -6.10 -4,69 6,94 6.73 5.62 +1.11 -1.90 -.79 14.............. 7.00 5.64 1.36 -4.45 -3.09 6.77 6,57 5.64 + .93 -.91 + .02 21.............. 7.03 5.32 1.71 -4.29 -2.58 6.66 6.46 5.32 + 1.14 -.84 + .30 28.............. 7,03 5.26 1.77 -5.23 -3.46 6.54 6.35 5.26 + 1.09 -.95 + .14 July 5.............. 7.03 5.35 1,68 -5.56 -3.88 6,50 6.31 5.35 + .96 -1.01 -.05 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1460, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

M-^U IVIUNtY KAI Lb a JULY lybb 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 14.325 429.553 1967—June... .28506 111.20 3.8698 2.0143 92.544 20.917 14.439 31,062 July... .28501 111.05 3.8714 2.0147 92.766 20.903 14.413 31.062 Aug... .28505 110.97 3.8728 2.0148 92.937 20.900 14.403 31.062 Sept... .28507 110.90 3.8720 2.0146 92.989 20.894 14.417 31,062 Oct.... .28503 110.88 3.8693 2.0147 93.149 20.889 14.416 426.672 Nov.,. .28488 111.28 3.8656 2.0145 93.004 •<19.806 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 Feb.... .28469 111.98 3.8645 2.0142 91.962 16.688 13.412 23,763 Mar.. . .28468 M 11,54 3.8635 2.0136 92.17! 16,688 13.419 23.763 Apr.... .28469 111.64 3.8655 2.0105 92.568 16,688 13.413 23.763 May... .28469 111.05 3.8670 2.0110 92.760 16.671 13.399 23.763 June... .28470 110,84 3.8683 2.0058 92.846 16.662 13.373 23.763 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 e a n 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 l i e a 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............... 20.352 25.007 M6.596 279.30 .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—June... 20.375 25.122 13.242 279.12 .16007 .27627 32.519 8.0056 27.756 July... 20.395 24.996 (3,224 278.73 .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 25.072 513.236 9266,18 .16059 .27621 1032.472 8,0056 27.805 Dec.... 20.381 25.094 13.334 240.63 .16019 .27633 32.687 8.0056 27.804 (968—Jan.. . . 20.307 24.974 13.337 240.91 .16004 .27612 32.712 8.0056 27,747 Feb................................................. 20.315 24.987 13.337 240.92 .16004 .27616 32,721 8.0056 27.719 Mar.. . 20.316 25.067 13.319 6239.97 .16023 .27620 32.630 8,0056 27.728 Apr................................................. 20.290 25.093 13.318 240.18 .16011 .27603 32.654 8.0056 27.632 May... 20,212 25.119 13.268 238.92 .16059 .27604 32.556 8,0056 27.635 June................................................ 20,107 25.032 13.228 238.46 .16048 .27636 32.509 8.0056 27.620 Period (pou N n e d w ) Zea ( la d n o d llar) N (k o r r o w n a e) y (e P s g o c a r u t l d u o ­ ) A S (r o f a r u n ic t d h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( S e fr r w a la n i n t c z d ) ­ (p U K d o n o i u n i m t n g e d - d ) 1963............... 277.22 13.987 3.4891 139.48 1.6664 19.272 23.139 280.00 1964............... 276.45 13.972 3.4800 139,09 1.6663 19.414 23.152 279.21 1965............... 276.82 (3.985 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............ U276.69 12131.97 13.985 3.4784 139,09 1.6383 19.373 23.104 275.04 1967—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 1.6637 (9.394 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 •J1.583I 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 Feb.... 112,10 14.001 3.4866 140,01 1.4231 19.361 22.994 240.92 Mar.. . <>111.66 14.005 3.4854 ‘•139.46 1.4264 19.345 23.085 6239.97 Apr.... 111.75 14.000 3.4891 139,58 1.4283 19.338 23.049 240.18 May.,. 111.17 14.000 3.4874 138.85 1.4283 19.354 23,118 238.92 June... 110.95 14.000 3.4867 138.58 1.4279 19.352 23.233 238.46 i A new markka, equal to 100 old markkas, was introduced on Jan. 1, 9 Quotations not available Nov. 21, 1967. 1963. . 1 ° Quotations not available Nov. 21-27, 1967. 2 Based on quotations through Feb. 11, 1966. 1 1 Based on quotations through July 7, 1967. 3 Effective Feb. 14, 1966, Australia adopted the decimal, currency •2 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. Non:.—After the devaluation of the pound sterling on Nov. 18, 1967, 5 Quotations not available Nov. 21-24, 1967. the following countries devalued their currency in relation to the U.S. 6 Quotations not available Mar. 15, 1968. 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. 8 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to For description of rates and back data, sec “International Finance,” 7.5 rupees per U.S. dollar. Section 15 al' Supplement to Ranking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Wm. McC. Martin, Jr., Chairman J. L. Robertson, Vice Chairman George W. Mitchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer William W. Sherrill Robert C. Holland, Secretary of the Board Daniel H. Brill, Senior Adviser to the Board Robert Solomon, Adviser to the Board Merritt Sherman, Assistant to the Board Howard H. Hackley, Assistant to the Board Charles Molony, Assistant to the Board Robert L. Cardon, Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF FEDERAL RESERVE BANK OPERATIONS Robert C. Holland, Secretary Kenneth A. Kenyon, Deputy Secretary John R. Farrell, Director Elizabeth L. Carmichael, Assistant Secretary John N. Kiley, Jr., Associate Director Arthur L. Broida, Assistant Secretary James A. McIntosh, Assistant Director Robert P. Forrestal, Assistant Secretary P. D. Ring, Assistant Director Charles C. Walcutt, Assistant Director LEGAL DIVISION Lloyd M. Schaeffer, Chief Federal Reserve Examiner David B. Hexter, General Counsel Thomas J. O’Connell, Deputy General DIVISION OF SUPERVISION AND REGULATION Counsel Jerome W. Shay, Assistant General Counsel Frederic Solomon, Director Brenton C. Leavitt, Deputy Director Frederick R. Dahl, Assistant Director DIVISION OF RESEARCH AND STATISTICS Jack M. Egertson, Assistant Director Daniel H. Brill, Director Janet O. Hart, Assistant Director Albert R. Koch, Deputy Director John N. Lyon, Assistant Director J. Charles Partee, Associate Director Thomas A. Sidman, Assistant Director Stephen H. Axilrod, Adviser Tynan Smith, Actinp Assistant Director Lyle E. Gramley, Adviser Kenneth B. Williams, Adviser DIVISION OF PERSONNEL ADMINISTRATION Stanley J. Sigel, Associate Adviser Tynan Smith, Associate Adviser Edwin J. Johnson, Director Murray S. Wernick, Associate Adviser John J. Hart, Assistant Director James B. Eckert, Assistant Adviser DIVISION OF ADMINISTRATIVE SERVICES Peter M. Keir, Assistant Adviser Bernard Shull, Assistant Adviser Joseph E. Kelleher, Director Louis Weiner, Assistant Adviser Harry E. Kern, Assistant Director OFFICE OF THE CONTROLLER DIVISION OF INTERNATIONAL FINANCE Robert Solomon, Director John Kakalec, Controller Robert L. Sammons, Associate Director OFFICE OF DEFENSE PLANNING John E. Reynolds, Associate Director John F. L. Ghiardi, Adviser Innis D. Harris, Coordinator A. B. Hersey, Adviser Reed J. Irvine, Adviser DIVISION OF DATA PROCESSING Samuel I. Katz, Adviser Lawrence H. Byrne, Jr., Director Ralph C. Wood, Adviser Lee W. Langham, Assistant Director A-91 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-92 FEDERAL RESERVE BULLETIN □ JULY 1968 FEDERAL OPEN MARKET COMMITTEE WM. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer W. Braddock Hickman George W. Mitchell J. Dewey Daane Monroe Kimbrel J. L. Robertson Hugh D. Galusha, Jr. Sherman J. Maisel William W. Sherrill Robert C. Holland, Secretary Merritt Sherman, Assistant Secretary John H. Kareken, Associate Economist Kenneth A. Kenyon, Assistant Secretary Albert R. Koch, Associate Economist Arthur L. Broida, Assistant Secretary Robert G. Link, Associate Economist Charles Molony, Assistant Secretary Maurice Mann, Associate Economist Howard H. Hackley, General Counsel J. Charles Partee, Associate Economist David B. Hexter, Assistant General Counsel John E. Reynolds, Associate Economist Daniel H. Brill, Economist Robert Solomon, Associate Economist Stephen H. Axilrod, Associate Economist Charles T. Taylor, Associate Economist A. B. Hersey, Associate Economist Parker B. Willis, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL John A. Mayer, fourth federal reserve district, President J. Harvie Wilkinson, Jr., fifth federal reserve district, Vice President John Simmen, first federal reserve John Fox, eighth federal DISTRICT reserve district George S. Moore, second federal Philip H. Nason, ninth federal reserve district reserve district Harold F. Still, Jr., third federal Jack T. Conn, tenth federal reserve district RESERVE DISTRICT George S. Craft, sixth federal Robert H. Stewart, III, eleventh federal reserve district RESERVE DISTRICT David M. Kennedy, seventh federal Frederick G. Larkin, Jr., twelfth federal reserve district reserve district Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN □ JULY 1968 A-93 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 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. Maclnncs, 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 Aubrey N. Heflin Robert W. Lawson, Jr. Robert P. Black Baltimore..............21203 E. Wayne Corrin Donald F. Hagner Charlotte........... ...28201 James A. Morris Edmund F. MacDonald Atlanta.................. ...30303 Edwin 1. 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 O. Meredith Wilson 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, Hoard of Governors of the Federal Reserve System, Washington, D.C., 20551. Where a charge is indicated, remittance should ac­ company 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 re­ leases. see pp. 2166-69 of the December 1967 Bulletin. (Stamps and coupons not accepted) THE FEDERAL RESERVE SYSTEM—PURPOSES AND Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ FUNCTIONS. 1963. 298 pp. rency. 1963. 11 pp. $.35. Sec. 12. Money Rates and Securities Markets. 1966. 182 pp. $.65. ANNUAL REPORT. Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ FEDERAL RESERVE BULLETIN. Monthly. $6.00 per national Finance. 1962, 92 pp. $.65. Sec. 16 annum or $.60 a copy in the United States and (New). Consumer Credit. 1965. 103 pp. $.65. its possessions, Bolivia, Canada, Chile, Colom­ BANK MERGERS & THE REGULATORY AGENCIES: bia, Costa Rica, Cuba, Dominican Republic, APPLICATION OF THE BANK MERGER ACT OF Ecuador, Guatemala, Haiti, Republic of Hon­ 1960. 1964. 260 pp. $1.00 a copy; 10 or more duras, Mexico, Nicaragua, Panama, Paraguay, sent to one address, $.85 each. Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue sent to one address, $5.00 BANKING MARKET STRUCTURE & PERFORMANCE per annum or $.50 each. Elsewhere, $7.00 per IN METROPOLITAN AREAS: A STATISTICAL annum or $.70 a copy. STUDY OF FACTORS AFFECTING RATES ON BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or FEDERAL RESERVE CHART BOOK ON FINANCIAL more sent to one address, $.40 each. AND BUSINESS STATISTICS. Monthly. Annual FARM DEBT. Data from the 1960 Sample Survey subscription includes one issue of Historical of Agriculture. 1964. 221 pp. $1.00 a copy; 10 Chart Book. $6.00 per annum or $.60 a copy in or more sent to one address, $.85 each. the United States and the countries listed above; 10 or more of same issue sent to one address, MERCHANT AND DEALER CREDIT IN AGRICUL­ $.50 each. Elsewhere, $7.00 per annum or $.70 TURE. 1966. 109 pp. $1.00 a copy; 10 or more a copy. sent to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. MONETARY THEORY AND POLICY: A BIBLIOGRA­ Subscription to monthly chart book includes PHY. Part I—Domestic Aspects. 137 pp. $1.00 one issue. $.60 a copy in the United States and a copy; 10 or more sent to one address, $.85 countries listed above; 10 or more sent to one each. address, $.50 each. Elsewhere, $.70 a copy. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. FLOW OF FUNDS IN THE UNITED STATES, 1939­ 53. 1955. 390 pp. $2.75. RULES OF ORGANIZATION AND PROCEDURE­ DEBITS AND CLEARING STATISTICS AND THEIR BOARD OF GOVERNORS OF THE FEDERAL RE­ USE. 1959. 144 pp. $1.00 a copy; 10 or more SERVE SYSTEM. 1967. 16 pp. sent to one address, $.85 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVERNORS, as of June 30, 1967. $2.50. THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 a copy; 10 or more sent to one address, TRADING IN FEDERAL FUNDS. 1965. 1 16 pp. $1.00 $.85 each. a copy; 10 or more sent to one address, $.85 each. INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. 172 pp. $1.00 a copy; 10 or more sent to one U.S. TREASURY ADVANCE REFUNDING, JUNE address, $.85 each. 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 or more sent to one address, $.40 each. THE FEDERAL RESERVE ACT, as amended through SURVEY OF FINANCIAL CHARACTERISTICS OF Nov. 5, 1966, with an appendix containing pro­ CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or visions of certain other statutes affecting the more sent to one address, $.85 each. Federal Reserve System. 353 pp. $1.25. THE PERFORMANCE OF BANK HOLDING COM­ SUPPLEMENT TO BANKING AND MONETARY STA­ PANIES. 1967. 29 pp. $.25 a copy; 10 or more TISTICS. Sec. 1. Banks and the Monetary Sys­ sent to one address, $.20 each. tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 REAPPRAISAL OF THE FEDERAL RESERVE DIS­ pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. COUNT MECHANISM: REPORT OF A SYSTEM $.35. Sec. 9. Federal Reserve Banks. 1965. 36 COMMITTEE. 1968. 23 pp. $.25 a copy; 10 or pp. $.35. Sec. 10. Member Bank Reserves and more sent to one address, $.20 each. A-94 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A-95 STAFF ECONOMIC STUDIES INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Studies and papers on economic and financial sub­ RECENT CHANGES IN LIQUIDITY, Staff Paper by jects that are of general interest in the field of Daniel H. Brill. June 1963. 10 pp. economic research. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. Summaries only printed in the Bulletin. MEASURING AND ANALYZING ECONOMIC GROWTH, Staff Paper by Clayton Gehman. Aug. 1963. (Limited supply of mimeographed copies of full 14 pp. text available upon request for single copies.) CHANGES IN BANKING STRUCTURE, 1953-62. Sept. MEASURES OF INDUSTRIAL PRODUCTION AND 1963. 8 pp. FINAL DEMAND, by Clayton Gehman and Cor­ ECONOMIC CHANGE AND ECONOMIC ANALYSIS, nelia Motheral. Jan. 1967. Staff Paper by Frank R. Garfield. Sept. 1963. BUSINESSES VIEW BANKING SERVICES: A SURVEY 17 PP- OF CEDAR RAPIDS, IOWA, by Lynn A. Stiles. THE OPEN MARKET POLICY PROCESS. Oct. 1963. July 1967. ' H PP- EMPIRICAL LITERATURE ON THE U.S. BALANCE NEW SERIES ON FEDERAL FUNDS. Aug. 1964. OF TRADE, by Charles K. Harley. July 1967. 31 pp. THE BOOM IN OFFICE BUILDINGS, by Robert YIELD DIFFERENTIALS IN TREASURY BILLS, 1959­ Moore Fisher. Aug. 1967. 64, Staff Paper by Samuel I. Katz. Oct. 1964. 20 pp. CUSTOMERS VIEW BANK MARKETS AND SERVICES: A SURVEY OF ELKHART, INDIANA, by George G. RESEARCH INTO BANKING STRUCTURE AND COM­ Kaufman. Aug. 1967. PETITION. Nov. 1964. 17 pp. A TEST OF THE DEPOSIT RELATIONSHIP HYPOTH­ REVISION OF BANK DEBITS AND DEPOSIT TURN­ ESIS, by Neil B. Murphy. Sept. 1967. OVER SERIES. Mar. 1965. 4 pp. INTEREST RATES AND THE DEMAND FOR CON­ MEASURES OF BANKING STRUCTURE AND COM­ SUMER DURABLE GOODS, by Michael J. Ham­ PETITION. Sept. 1965. 11 pp. burger. Dec. 1967. TIME DEPOSITS IN MONETARY ANALYSIS, Staff THE LAGS BETWEEN INVESTMENT DECISIONS AND Economic Study by Lyle E. Gramley and Sam­ THEIR CAUSES, by Shirley Almon. Feb. 1968. uel B. Chase, Jr. Oct. 1965. 25 pp. EFFECTS OF MONEY ON INTEREST RATES, by Wil­ CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ liam E. Gibson. Mar. 1968. ING WORLD, Staff Paper by Frank R, Garfield. Nov. 1965. 15 pp. A DISAGGREGATED MODEL OF THE U.S. BALANCE OF TRADE, by William H. Branson. May 1968. RESEARCH ON BANKING STRUCTURE AND PER­ FORMANCE, Staff Economic Study by Tynan Printed in full in the Bulletin. Smith. Apr. 1966. 11 pp. (Reprints available as shown in following list.) COMMERCIAL BANK LIQUIDITY, Staff Economic Study by James Pierce. Aug. 1966. 9 pp. REPRINTS REVISION OF WEEKLY REPORTING MEMBER BANK SERIES. Aug. 1966. 4 pp. (From Federal Reserve Bulletin unless preceded TOWARD UNDERSTANDING OF THE WHOLE DE­ by an asterisk.) VELOPING ECONOMIC SITUATION, Staff Eco­ ADJUSTMENT FOR SEASONAL VARIATION. Descrip­ nomic Study by Frank R. Garfield. Nov. 1966. tion of method used by Board in adjusting eco­ 14 pp. nomic data for seasonal variations. June 1941. A REVISED INDEX OF MANUFACTURING CAPACITY, 11 PP- Staff Economic Study by Frank de Leeuw with SEASONAL FACTORS AFFECTING BANK RESERVES. Frank E. Hopkins and Michael D. Sherman. Feb. 1958. 12 pp. Nov. 1966. 11 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by THE ROLE OF FINANCIAL INTERMEDIARIES IN Stephen H. Axilrod. Oct. 1961. 17 pp. U.S. CAPITAL MARKETS, Staff Economic Study SEASONALLY ADJUSTED SERIES FOR BANK by Daniel H. Brill, with Ann P. Ulrey. Jan. CREDIT. July 1962. 6 pp. 1967. 14 pp. ' Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-96 FEDERAL RESERVE BULLETIN □ JULY 1968 REVISED SERIES ON COMMERCIAL AND INDUS­ THE FEDERAL RESERVE-MIT ECONOMETRIC TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES FINANCE COMPANIES. Feb. 1967. 5 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, JULY-OCT. 1967. Jan. 1968. 20 pp. CONSUMER INSTALMENT CREDIT. Mar. 1967. 12 RECENT CREDIT AND MONETARY DEVELOPMENTS. PP- Feb. 1968. 11 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. 1967. 26 pp. 1968. 7 pp. MONETARY POLICY AND ECONOMIC ACTIVITY: A BALANCE OF PAYMENTS PROGRAM: REVISED POSTWAR REVIEW. May 1967. 22 pp. GUIDELINES FOR BANKS AND NONBANK FINAN­ CIAL INSTITUTIONS. Mar. 1968. 9 pp. MONETARY POLICY AND THE RESIDENTIAL MORT­ TREASURY AND FEDERAL RESERVE FOREIGN EX­ GAGE MARKET. May 1967. 13 pp. CHANGE OPERATIONS. Mar. 1968. 22 pp. BANK FINANCING OF AGRICULTURE. June 1967. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 23 pp. 1960-67. Apr. 1968. 23 pp. EVIDENCE ON CONCENTRATION IN BANKING QUARTERLY SURVEY OF CHANGES IN BANK LEND­ MARKETS AND INTEREST RATES, Staff Eco­ ING PRACTICES. Apr. 1968. 6 pp. nomic Study by Almarin Phillips. June 1967. RECENT CAPITAL MARKET DEVELOPMENTS. May 11 PP- 1968. 11 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 BANKING AND MONETARY STATISTICS, 1967. AND 1963. June 1967. 4 pp. Selected series of banking and monetary statis­ tics for 1967 only. Mar. and May 1968. 20 pp. REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. CONSUMER INSTALMENT CREDIT. June 1968. >3 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MARGIN ACCOUNT CREDIT. June 1968. 12 pp. MEMBER BANKS. July 1967. 6 pp. RECENT MONETARY AND CREDIT DEVELOP­ INTEREST COST EFFECTS OF COMMERCIAL BANK MENTS. July 1968. 11 pp. UNDERWRITING OF MUNICIPAL REVENUE MONETARY RESTRAINT AND BORROWING AND BONDS. Aug. 1967. 16 pp. CAPITAL SPENDING BY LARGE STATE AND REVISION OF BANK CREDIT SERIES. Sept. 1967. LOCAL GOVERNMENTS IN 1966. July 1968. 30 7 PP- PP- RECENT CHANGES IN STRUCTURE OF TIME AND THE ECONOMIC PAUSE IN WESTERN EUROPE. SAVINGS DEPOSITS. July 1968. 20 pp. Oct. 1967. 17 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 09—A hguorht 4 — A segap ot era secnerefeR( Acceptances, bankers’, 14, 31, 35 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment Arbitrage, 89 of personal loans, 23 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 18 Banks, by classes, 19, 24, 26, 35 Banks, by classes, 11, 19, 25, 28, 35 Banks and the monetary system, 18 Federal Reserve Banks, 12, 83 Corporate, current, 47 Postal savings, 18 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Automobiles: Discount rates, 9, 88 Consumer instalment credit, 52, 53, 54 Discounts and advances by Reserve Banks, 4, 12, 15 Production index, 56, 57 Dividends, corporate, 46, 47 Dollar assets, foreign, 73, 78 Bankers’ balances, 25, 27 (See also Foreign liabilities and claims) Earnings and hours, manufacturing industries, 63 Banks and the monetary system, 18 Employment, 60, 62, 63 Banks for cooperatives, 37 Bonds (See also U.S. Govt, securities): Farm mortgage loans, 48, 49 New issues, 43, 44, 45 Federal finance: Yields and prices, 32, 33 Cash transactions, 38 Branch banks, liabilities of U.S. banks to their for­ Receipts and expenditures, 39 eign branches, 83 Treasurer’s balance, 38 Business expenditures on new plant and equipment, 47 Federal funds, 8, 24 Business indexes, 60 Federal home loan banks, 37, 49 Business loans (See Commercial and industrial loans) Federal Housing Administration, 33, 48, 49, 50 Federal intermediate credit banks, 37 Federal land banks, 37 Capacity utilization, 60 Federal National Mortgage Assn., 37, 50 Capital accounts: Federal Reserve Banks: Banks, by classes, 19, 25, 29 Condition statement, 12 Federal Reserve Banks, 12 U.S. Govt, securities held, 4, 12, 15, 40, 41 Central banks, foreign, 86, 88 Federal Reserve credit, 4, 12, 15 Certificates of deposit, 29 Federal Reserve notes, 12, 16 Coins, circulation, 16 Federally sponsored credit agencies, 37 Commercial and industrial loans: Finance company paper, 31, 35 Commercial banks, 24 Financial institutions, loans to, 24, 26 Weekly reporting banks, 26, 30 Float, 4 Commercial banks: Flow of funds, 68 Assets and liabilities, 19, 24, 26 Foreign currency operations, 12, 14, 73, 78 Consumer loans held, by type, 53 Foreign deposits in U.S. banks, 4, 12, 18, 25, 28, 83 Deposits at, for payment of personal loans, 23 Foreign exchange rates, 90 Number, by classes, 19 Foreign liabilities and claims: Real estate mortgages held, by type, 48 Banks, 74, 75, 77, 79, 81, 83 Commercial paper, 31,35 Nonbanking concerns, 84 Condition statements (See Assets and liabilities) Foreign trade, 71 Construction, 60, 61 Consumer credit: Instalment credit, 52, 53, 54, 55 Gold: Noninstalment credit, by holder, 53 Certificates, 12, 16 Consumer price indexes, 60, 64 Earmarked, 83 Consumption expenditures, 66, 67 Net purchases by U.S., 72 Corporations: Production, 87 Sales, profits, taxes, and dividends, 46, 47 Reserves of central banks and govts., 86 Security issues, 44, 45 Stock, 4, 18, 73 Security yields and prices, 32, 33 Gross national product, 66, 67 Cost of living (See Consumer price indexes) Currency and coin, 4, 10, 25 Hours and earnings, manufacturing industries, 63 Currency in circulation, 4, 16, 17 Housing starts, 61 Customer credit, stock market, 34 Income, national and personal, 66, 67 Debits to deposit accounts, 15 Industrial production index, 56, 60 Debt (See specific types of debt or securities) Instalment loans, 52, 53, 54, 55 Demand deposits: Insurance companies, 36, 40, 41, 49 Adjusted, banks and the monetary system, 18 Insured commercial banks, 21, 23, 24 Adjusted, commercial banks, 15, 17, 25 Interbank deposits, 11, 19, 25 Banks, by classes, 11, 19, 25, 28 Interest rates: Subject to reserve requirements, 17 Business loans by banks, 31 Turnover, 15 Federal Reserve Bank discount rates, 9 A-97 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis