Federal Reserve Bulletin, 1968-09

FEDERAL RESERVE 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 NUMBER 9 □ VOLUME 54 □ SEPTEMBER 1968 CONTENTS 701 Federal Fiscal Policy in the 1960's 719 Staff Economic Studies: Summary 721 Treasury and Federal Reserve Foreign Exchange Operations 743 Statement to Congress 749 Record of Policy Actions of the Federal Open Market Committee 757 Law Department 782 Announcements 784 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- 94 Board of Governors and Staff A- 95 Open Market Committee and Staff; Federal Advisory Council A- 96 Federal Reserve Banks and Branches A- 97 Federal Reserve Board Publications A-100 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 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

Federal Fiscal Policy in the 1960's A MAJOR SHIFT in the budgetary stance of the Federal Govern­ ment from fiscal stimulus toward fiscal restraint began with the revenue and expenditure control law enacted in late June. While the Federal budget in the fiscal year ending June 1968 showed the largest deficit since World War II, the administration is now pro­ jecting that the move toward restraint will reduce the deficit by more than $20 billion in the current fiscal year. The June legislation is the latest in a series of fiscal actions taken during the 1960’s to influence the state of domestic economic activity. During the first half of the decade, such actions focused on the need to encourage more rapid expansion in private sectors of the economy through various forms of tax incentives. After mid- BUDGET DEFICITS 1965, however, total Federal outlays grew rapidly—chiefly be­ cause of the unexpected upsurge in defense spending needed to support expanded U.S. participation in the Vietnamese conflict. With expenditures in private sectors also large—due partly to the tax incentives legislated earlier—over-all demands for the nation’s resources became excessively strong and upward pressures on prices persistent. Therefore, the direction of compensatory fiscal policy was reversed in early 1966, as several steps were taken to augment receipts. A more extensive proposal to raise taxes, initiated in 1967, was ultimately embodied in the June 1968 law. A review of the record of contrasting fiscal actions before and BILLIONS OF DOLLARS Fiscal year 1969 Federal budget after escalation of U.S. involvement in Vietnam leaves little doubt deficit as estimated in Summer Re­ that compensatory fiscal policy can exert a powerful influence view of the 1969 Budget. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 on the economy. But the record also suggests that under present institutional arrangements the flexibility of such policy is some­ times limited. Time is required for the administration to recognize a need for fiscal action and to formulate a specific policy proposal. Further time then ensues while Congress considers, debates, and acts upon the proposal. These lags may be prolonged, if the action recom­ mended heightens continuing differences of opinion as to the ap­ propriate scope and functions of Federal spending; even a pro­ posal to raise or lower taxes temporarily tends to be viewed not just in terms of its immediate fiscal policy objective but also in light of its potential long-run effects on the level of Federal spending. Moreover, particular policy requests are difficult to evaluate be­ cause the actual deficit (or surplus) may not reflect the true eco­ nomic effect of the budget. A particular deficit (or surplus) may be either too stimulative or too restrictive, depending on the ex­ tent to which resources in private sectors are employed. Finally, even after a given fiscal policy change has been adopted, there is typically some further lag as its effects work their way through the economy. Here, full implementation of a decision to change Fed­ eral spending often takes longer than for the economy to respond to a change in taxes. In the face of these lags, responsible propos­ als for fiscal action must obviously be based in large measure on a forecast of the expected course of future events. This need too makes the policy task more difficult. 11 FEDERAL DEFICIT deepens substantially after 1966 BILLIONS OF DOLLARS EXPENDITURES RECEIPTS Federal receipts and expenditures as recorded in the national income accounts. Receipts for the first two quarters of 1968 measure corporate tax accruals before the imposition of the surcharge on June 28; after that date corporate tax accruals were revised upward for each of these two quarters by $3.4 billion due to the retroactive feature of the surcharge. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 703 PERIOD OF TAX The first major tax change of the 1 960’s—the investment tax credit REDUCTIONS passed in 1962—permitted a credit against business income tax liabilities amounting to as much as 7 per cent of outlays for new investment in machinery and equipment. Its purpose was to pro­ mote more rapid economic growth through the encouragement of private investment spending, which had been sluggish since 1957. To achieve the same end, the Treasury also announced new guide­ lines liberalizing the computation of depreciation and shortening (for tax purposes) the useful life of depreciable assets. Although these tax incentives were expected to have a significant cumulative impact on economic activity over time, the domestic economy in late 1962 and early 1963 was still operating well below its potential. In assessing the need for possible further fiscal action to overcome this persistent underutilization of resources, the administration made use of the concept of a “high-employment budget.” The high-employment budget is an estimate of the Federal surplus or deficit in the national income accounts at some target level of gross national product representing a high, but noninflationary level of economic activity. This estimate assumes the same level of Federal spending as that already projected in the regular budget (except that unemployment compensation is at a different rate), but it bases receipts on levels of income and profits that would prevail at the target level of GNP rather than the one as­ sumed in the official budget. Estimates derived for the high-employment budget in 1963 showed that with Federal receipts computed to allow for the full potential level of national income as well as for the existing pro­ gressive tax rate structure, the Federal sector was showing a tend­ ency toward a very large high-employment surplus at a time when spending in other sectors of the economy was not sufficient to offset the restrictive influence of this surplus. In other words, if the HIGH EMPLOYMENT SURPLUS economy moved toward higher levels of employment, tax receipts """’'""""""''"•^^ would tend to grow more rapidly than either GNP or Federal 12 spending, so that in effect the budget would exercise a “fiscal drag” ADDITIONAL REVENUE and prevent full realization of the high-employment goal. DUE TO HIGH EMPLOYMENT $ Admittedly the high-employment budget does not give a com­ plete measure of the fiscal impact of the Federal sector—-partly because the private economy reacts with various lag patterns to Federal fiscal activities and partly because fiscal policy includes ;:MV.F| PT Mi” A.I >A7H' —mi, nia sum »>s hiMM— indirect incentives and penalties in addition to the flow of taxes Data are retrospective computations and spending. Moreover, the concept runs into difficulty when the for calendar year 1963. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 REVENUE ACTIONS TAKEN TO INFLUENCE ECONOMIC ACTIVITY Date Date Measure Remarks recommended enacted Period of tax reductions Investment tax April 1961 October Provided a sizable incentive for new credit 1962 investment in depreciable equipment for domestic use. A 7 per cent credit against income tax liabilities is allowed on such investment with a service life of 8 years of more. For assets with service lives of 6-8 years, two-thirds of the full credit is allowed; for those with lives of 4-6 years, one-third is allowed. For certain public utilities the amount is 3 per cent. An over-all ceiling was set on the tax credit amounting to $25,000 plus 25 per cent of the remaining tax liability. Liberalized Promulgated in July 1962 New guidelines (1) allowed a faster depreciation by Treasury Department rate of charge-off of costs for invest­ guidelines decision—no new legisla- ment outlays and (2) shortened the tion required. useful lives of equipment for purpose of computing depreciation. Revenue Act of January 1963 February A permanent cut in income tax rates 1964 1964 for all individual and corporate taxpayers. Personal taxes were cut by more than 20 per cent and corpo­ rate taxes by about 8 per cent. Before the cut the marginal personal tax rates ranged from 20 to 91 per cent; afterwards the range was 14 to 70 per cent. For most corporations rates fell from 52 to 48 per cent. For calendar year liabilities, tax rates were cut in two stages with part of the cut postponed until 1965. Personal withholding rates were reduced by the full amount as early as March 1964. The Act also provided for a gradual acceleration of income tax payments by large corporations to a pay-as-you-go basis. Prior to the 1964 change, taxes on a corporation’s estimated liability in excess of $100,000 were due in equal quarterly instalments with a 6-month lag between liability and payment. The 1964 change provided for an acceler­ ation of payments from this old basis over a 7-year period, at the end of which the full amount of estimated tax liability in excess of $100,000 would be due within the year of liability. On both the old and the new bases penalties were assessed Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 705 REVENUE ACTIONS TAKEN TO INFLUENCE ECONOMIC ACTIVITY—Cont. Date Date Measure Remarks recommended enacted Period of tax reductions—continued if current payments totaled less than 70 per cent of the tax liability due; however, in lieu of the 70 per cent requirement, a corporation could elect to pay quarterly taxes on the basis of its preceding year's profits. The Act also increased allowable depreciation through an amendment to the investment tax credit (the Long Amendment) providing that the tax credit need not be deducted from the depreciable value of affected assets. Excise Tax January 1965 June Provided repeal of Federal excise Reduction Act 1965 taxes on appliances, radios, television of 1965 sets, jewelry, furs, toilet preparations, luggage and other items; and system­ atic reductions in rates on pas­ senger automobiles and parts, and telephone and other communication services. The law set up a schedule of reductions, the first one of which be­ came effective July 1965 and the second January 1966. The Act did not change Federal excises for alcoholic beverages, tobacco, gasoline, tires, trucks, trailers, and some other items. Period of tax increases Tax Adjustment January 1966 March Main features: (1) Restored excise Act of 1966 1966 tax rates on automobiles and tele­ phone service to levels preceding the second-stage reduction in January 1966. Second-stage reductions were rescheduled effective April 1, 1968. (2) Introduced graduated tax rates on withheld personal taxes—to speed up collections of tax receipts. (3) An additional speed-up of corporate income tax payments telescoped the time period over which the acceleration provided for in the 1964 Act would occur, from a total of 7 years to a total of 4 years. (4) Quarterly (rather than annual) payments required for social security taxes for the self-employed. See also next page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 REVENUE ACTIONS TAKEN TO INFLUENCE ECONOMIC ACTIVITY—Cont. Date Date Measure Remarks recommended enacted Period of tax increases—continued Suspension of September Novem- Investment tax credit, along with investment tax 1966 ber accelerated depreciation options as credit 1966 they apply to buildings, were sus­ pended on items acquired or ordered beginning October 10, 1966, with a scheduled date for restoration of January 1968, The suspension law carried an amendment that would liberalize the tax credit as of the time of restoration by increasing the permissible ceilings on the tax credit from 25 per cent to 50 per cent of the tax liability in excess of $25,000. Restoration of March 1967 June Investment tax credit restored, effec­ investment tax 1967 tive March 10, 1967. This restoration credit1 immediately provided for the more liberal ceilings scheduled for the anticipated 1968 restoration. Surcharge on January 1967 June Enacted as Revenue and Expenditure individual and 1968 Control Act of 1968. Chief features corporate income are a 10 per cent surcharge on taxes income taxes paid by individuals, effective April 1, 1968, and by corporations, effective January 1, 1968; surtax expires June 30, 1969.2 These rates had been recommended by the President in August 1967. Individuals whose taxes fall only within the lowest two rate brackets were exempted from the surtax. In addition excise tax rates on automobiles and telephone service were kept unchanged, with the cut previously scheduled for April 1968 postponed until January 1, 1970. The Act further accelerated cor­ porate income taxes by increasing the 70 per cent estimating require­ ment to 80 per cent. Act also provides for virtual elimination of the $100,000 exemption of tax liability, regarding acceleration, to occur in gradual stages over the next 10 years. Law also provides for a ceiling on fiscal year 1969 expenditures, cuts in requested appropriations, rescis­ sions of some unobligated balances, and gradual reduction in the size of Federal civilian employment. 1 This action was stimulative rather than restrictive in its effect on the economy and was taken at a time when the rate of economic expansion had temporarily slowed. 2 Amount of surtax due is computed prior to any investment tax credit deduction. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 707 economy is operating at high employment because no allowance is made for inflation. Nevertheless, in circumstances such as those prevailing in the early 1960’s when the economy was underem­ ployed and price increases were not inflating Federal outlays, the concept does provide a more meaningful measure of the Federal budgetary impact than the published measures of actual Federal surplus or deficit taken by themselves. Based on the evidence of fiscal drag in the early 1960’s, the ad­ ministration in early 1963 proposed a major reduction in income tax rates. This recommendation, in effect, called for compensatory fiscal action at a time when the economy, while sluggish, was not in a recession and when the actual Federal budget was in deficit. The purpose of the request was to boost private spending and bring total output up to its high-employment potential. In the process the tax cut was expected to reduce the high-employment budget surplus —which was averaging over $10.0 billion annually and tending higher. After considerable delay, the essentials of the administration’s 1963 request were embodied in the Revenue Act of 1964, passed in February. The Act provided for a cut in income tax rates to become effective in two stages, one in 1964 and the other in 1965. Altogether, marginal tax rates for individuals were re­ duced to a 14 to 70 per cent range from the 20 to 91 per cent range previously prevailing, and corporate income tax liabilities were re­ duced for most corporations from 52 per cent to 48 per cent. When originally enacted, the cut in tax liabilities amounted to $13 billion at an annual rate, with some $10.6 billion accruing to indi­ viduals. In terms of the higher income and price levels of 1967, the annual tax saving had grown to more than $18 billion. Cuts in withholding rates for individuals—from 18 to 14 per cent—became effective in March 1964, ensuring that the tax re­ duction would have an immediate impact on after-tax incomes and hence would have a rapid, and eventually multiple, feedback on spending and output. Because the withholding rate was cut at the outset to reflect both stages of the reduction, taxes withheld in 1964 left a larger than usual share of total liabilities to be paid up in April 1965. The anticipated effect of the 1964-65 tax cut on aggregate spending was not long in materializing. By the first half of 1965 the shortfall between actual and potential GNP had narrowed by more than one-half from the $25 billion to $30 billion gap that had Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 prevailed earlier in the 1960’s. Of course, the over-all stimulus to economic expansion provided by tax incentives in this period was not confined to the cut in income taxes. It also included the very significant lagged effects of the investment tax credit and liberalized depreciation allowances, as well as an additional liberal­ ization of the investment tax credit enacted in 1964 (the Long Amendment), which eliminated the 1962 provision that actual tax credits had to be deducted from the base used in computing de­ preciation. Even so, there was still some concern in early 1965 about the tendency for actual GNP to fall short of its potential. To help off­ set this continuing fiscal drag and at the same time make good on a long-deferred promise to reduce indirect taxes levied in World War II, a multiple-stage cut in Federal excise taxes was enacted in the spring of 1965. This provided for a lowering or elimination of excise taxes on consumer durable goods, telephone service, and certain other items. The first stage—amounting to a $1.7 billion cut at an annual rate—became effective in mid-June 1965; the second stage—of an equal amount—was scheduled to become effective at the start of 1966. By mid-1965, just prior to the escalation of fighting in Vietnam, the economy had, nevertheless, made fairly good progress toward full employment. Real GNP had grown some 13 per cent in the 214 years from the end of 1962. While the unemployment rate of 4.7 per cent in June of 1965 was still above the target level of 4 per cent, it was a full percentage point below the 1962-63 aver­ age. Wholesale and retail prices of commodities had remained quite steady through 1963 and had advanced only slightly by early 1965. Clearly the fiscal program to stimulate aggregate demand and business investment, along with a relatively easy monetary policy, had played a primary role in the nation’s steady and largely noninflationary growth in this period. SPENDING INCREASES The upsurge in total Federal spending that developed following the escalation of fighting in Vietnam, coming as it did at a time when the economy was already moving toward high employment, tipped the balance of economic pressures toward inflation. While the ultimate cost of U.S. involvement in the Vietnamese war was underestimated during the build-up in 1965 and 1966, the deci­ sion to expand U.S. participation had an early impact on business expectations and through this on business spending. Prior to the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 709 escalation of U.S. involvement many business analysts had begun to expect a slackening in the private investment boom, together with some moderation of inventory accumulation and consumer spending. Realization that Federal contracts and defense spending would instead be accelerating rapidly during the fiscal year 1966 suddenly shifted the outlook to concern about inflation. In the face of these changed expectations, inventories were rapidly accumu­ lated, consumer spending spurted, business plans for investment were revised upward, and price increases became widespread. Defense spending. From a low of $52 billion reached in the first quarter of 1965, defense obligations (contracts and payrolls) rose steadily by almost $20 billion in the following four quarters. After the first quarter of 1966 obligations rose more gradually, increas­ ing by $8 billion in the next four quarters and by only $3.5 billion from early 1967 to the latest available reports, which show a total of $82.5 billion for the 5 months ending in May 1968. 2 | Movements in DEFENSE OBLIGATIONS lead purchases “Defense obligations’’ covers gross obligations incurred outside the Government for national de­ fense functions; source: Defense Indicators, Dept, of Commerce; latest data: 1st quarter 1968. “Defense purchases’’ is the national income account series on national defense purchases of goods and services; latest data: 2nd quarter 1968. • indicates initial Budget Bureau fiscal year estimates of national defense spending plotted at the midpoint of the fiscal year. Adjust­ ments were made to the Budget Bureau estimates to improve comparability with data on na­ tional defense purchases of goods and services. Dashed lines begin in the month when the budget estimates were published. Defense purchases at first rose much more slowly than contracts, increasing by only $6.8 billion from the first quarter of 1965 to the first quarter of 1966. But in the following four quarters, the rise amounted to nearly $15 billion, While defense purchases con­ tinued to increase at an average annual rate of $6 billion through mid-1968, the much more moderate recent rise in obligations Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 would seem to indicate some leveling off of defense outlays in the period immediately ahead. During the third quarter of 1968, how­ ever, special allowance has to be made for the recent pay raises to military and civilian defense employees, which totaled $1.2 billion at annual rates. Nondefense spending. Major increases have also occurred over the past 3 years in Federal nondefense spending. In particular, payments for education grants to public schools and colleges, and transfer payments for social security benefits, including medicare, have both risen at a faster rate—though of course by much smaller dollar amounts—than defense outlays. Also, with output expand­ ing and prices of many farm commodities declining from the high levels reached in 1966, enlarged stabilization operations by the Commodity Credit Corporation were required; expenditures for agricultural programs have therefore risen, particularly in recent months. On the other hand, spending increases have moderated signifi­ cantly in some other program areas where expansion was particu­ larly large during earlier years. In space programs, for example, 3 ■ Most types of FEDERAL EXPENDITURES accelerate since early 1965 BILLIONS OF DOLLARS NATIONAL DEFENSE ■ SOCIAL SECURITY ALL OTHER , EDUCATION GRANTS ; WELFARE GRANTS ' AID TO AGRICULTURE HIGHWAY GRANTS ' , Average dollar CHANGE per year • ; ; Jan.-June 1963 to Jan.-June 1965 SPACE ! < ! | ! Jan.-June 1965 to Jan.-June 1968 1 -0* 123456769 “Social security” covers benefits from old age, survivors, and disability insurance trust funds, railroad retirement insurance trust fund, and after mid-1966 medicare. “Welfare grants” covers grants to States for public assistance and relief programs, such as aid to dependent children; medicaid grants are included beginning 1966. “All other” represents those Federal expenditures, as recorded in the national income accounts, that are not shown separately in the other cate­ gories of the chart. Source: Estimates by National Income Division of Dept, of Commerce and Federal Reserve. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 711 the level of spending actually declined, and in highway grants —where increases were so large in the 1950’s—the more recent pattern of growth has been moderate. Welfare grants have con­ tinued to increase, partly as a result of developments in programs for medicaid and aid to dependent children. All other nondefense programs showed a sizable advance in expenditures, but this change was spread rather widely over a number of areas, including the new programs to combat poverty. Altogether the general pattern in the 1965-68 period has clearly been for more rapid growth in both defense and nondefense Fed­ eral spending than in the first 5 years of the decade. Social security benefits versus tax rates. Changes in both social security receipts and payments have had sizable temporary effects on total purchasing power in the 1960’s as the table on the follow­ ing page suggests. Transfer payments to beneficiaries under old age insurance rose from an annual rate of $16.6 billion in the first half of 1965 to $29.2 billion in the first half of 1968 (Chart 3). One-third of this increase was accounted for by the medicare pro­ gram, which had not been legislated 3 years earlier; most of the remainder resulted from two sizable upward revisions in old age benefit schedules effective September 1965 and March 1968. In­ creases in benefit payments were introduced partly in an effort to maintain the real purchasing power of benefits received as con­ sumer prices rose and partly to provide liberalized benefits. To offset these increased benefit payments there were several increases in payroll taxes and in the salary base on which such taxes are paid. While these changes were intended to help match social security receipts with the level of expanded benefit payments, the timing of changes in revenues and in benefit payments was not completely synchronized. NET LENDING BILLIONS OF DOLLARS Federal lending. A significant part of total Federal outlays takes the form of Federal lending to private sectors and affects spend­ ing only indirectly; hence, like financial transactions generally, it is excluded from the national income accounts. Lending programs too have added significantly to total Federal outlays over the past 3 years, largely in response to developments in housing markets. The new unified Federal budget provides a measure of total AVG. 64 '65 1968 1968 Net lending for selected fiscal years Federal outlays, including those for Federal lending programs as as defined in new Federal budget. Excludes lending by privately-owned well as expenditures recorded in the national income accounts. Federally-sponsored agencies, such as Federal home loan banks; also ex­ Thus, this budget measures the need for Federal cash borrowing, cludes foreign loans made on non­ commercial terms. although it no longer includes borrowing by several Government- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 MAJOR CHANGES IN BENEFIT SCHEDULES OF, AND TAX RATES FOR, SOCIAL SECURITY TRUST FUNDS January 1962 to January 1969 Dollar Effective Increased benefits Increased tax rates amount1 January 1962 Combined rate for em­ ployer and employee in­ creased from 6.00 to 6.25 per cent............................. ...........4 January 1963 Combined rate increased to 7.25 per cent................ ....2.0 September 1965 Benefits increased................. ...........2..1....3................................ January 1966 Combined rate increased to 8.40 percent. Maximum earnings subject to tax lifted from $4,800 to $6,600. The latter change affects cash flows of taxes mainly in the second half of the year......................... ....6.0 July 1966 Medicare health benefits begin...................................... ...33.1 July 1966 Supplementary medical insurance premiums ($3.00 per month) initi­ ated on a voluntary basis.............6 January 1967 Combined rate increased to 8.80 per cent................ ....1.1 January 1968 Maximum earnings sub­ ject to tax lifted to $7,800. Mainly affects cash flow of taxes in the second half of the year........................ ....2.2 March 1968 Scale of benefits substanti­ ally increased ........................ ....3.5 April 1968 Voluntary supplementary medical insurance pre­ miums increased to $4.00.............2 January 1969 Combined rate scheduled to increase to 9.60 per cent.................................... ....3.0 1 Billions of dollars for first full year of operation. 2 This amount shows the increase in regular payments beginning October at an annual rate. Tn addition, a lump sum retroactive payment was disbursed in September in the amount of $0.9 billion. 3 Medicare benefit payments did not reach a normal level of operation until after the first quarter of 1967—due to start-up problems. Benefit payments for full year beginning April 1967 amounted to $4.9 billiort. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 placed on a more current basis by requiring quarterly declarations. At the same time, the second stage of the excise tax cut—which had already gone into effect at the start of 1966—was rescinded but rescheduled for April 1968. While all of these recommendations were enacted promptly, except for the postponement of the excise tax cut, they merely shifted the timing of cash payments of taxes rather than increas­ ing their total magnitude. Nevertheless, in the regular budget ac­ counts, receipts in fiscal years 1966 and 1967 were enlarged be­ cause the corporate tax acceleration caused collections to exceed current accruals of tax liabilities. Once the acceleration program was completed, however, corporate tax payments fell by $5.3 billion in fiscal year 1968 due partly to the fact that corporate profits had declined in 1967. As 1966 progressed, it became clear that Federal spending and borrowing would be much larger than initially projected and that strong inflationary pressures would persist. To help counter these pressures, monetary policy was tightened substantially. With de­ mands for funds from private sectors very large—reflecting to some extent the unexpected acceleration of corporate income tax payments—interest rates rose steeply. Credit rationing by lending institutions became severe, particularly in markets for the financing of housing; and by the late summer of 1966, these pressures were creating signs of disorder in financial markets that threatened to brake the pace of economic activity much too sharply. In these circumstances the administration announced additional proposals for fiscal restraint, designed in part to permit some eas­ ing of monetary policy and a resultant measure of relief in credit and housing markets. To slow the pace of business investment spending, which had been accounting for a major part of the con­ tinuing excess demands in resource and financial markets, Congress suspended for 15 months the investment tax credit, along with ac­ celerated depreciation options as they applied to buildings. These actions applied to items acquired or ordered on or after October 10, 1966. In addition, the administration announced plans for moderate cutbacks in Federal spending. The announcement effect of these proposals for fiscal action helped to correct the deep general deterioration of psychology prevalent in credit markets. At the same time, it became evident that over-all credit demands had slackened in response to the monetary and fiscal restraints introduced earlier in the year. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 715 Request for surtax. In early 1967, while the pace of the eco­ nomic expansion was continuing to slow, the administration re­ quested Congress to enact a temporary 6 per cent surcharge on both corporate and individual income taxes, to become effective in July 1967 and to run for 2 years or until commitments in Viet­ nam tapered off. This request reflected an assumption that the rate of economic expansion would accelerate sharply again after mid- 1967 and thus would require more fiscal restraint if inflationary developments were to be checked without risking an overly abrupt return to credit restraint, particularly in markets for home financ­ ing. With economic activity slowing in the first half of 1967, Con­ gress showed little willingness to accept the administration pro­ posal for a 6 per cent surtax; nor did the administration press its case very strongly. In fact the administration called for and ob­ tained a quick restoration of the investment tax credit. By the late summer of 1967, however, the economy was again showing signs of overheating. Federal budget receipts were not in­ creasing correspondingly partly because the various tax-speed-up measures of 1966 had already been completed, as note^, but also because receipts were still reacting to the slowdown in economic activity of early 1967. With deficit financing of the Federal Government expected to reach a new peacetime record, private borrowers scrambled aggressively to cover, through anticipatory financing, the bulk of their own expected needs. Consequently, even though monetary policy remained relatively easy, interest rates rose sharply to levels above the previous post-World War II peaks reached in the 1966 period of credit restraint. Since much of this renewed pressure on credit markets reflected expectations of developments likely to result from an overly stimu­ lative fiscal policy, the administration in early August strongly reiterated its request for the enactment of a surtax. Because it seemed likely that any final action on the request would come well after the July 1967 effective date originally proposed, the re­ quested surtax rate was raised from 6 to 10 per cent. This pro­ posal was also greeted with considerable opposition, notwithstand­ ing the massive budgetary deficit that loomed ahead for the fiscal year 1968. Evidence of renewed business expansion was still not wholly conclusive, and so the principal basis for action was still a forecast. Furthetmore, the on-again-off-again experience with the tax-credit suspension had tended to create resistance to fine­ tuning through fiscal action. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 Finally, many people who were prepared to admit the need for some fiscal action to minimize the budget deficit and to avoid a credit crunch similar to the one that had occurred in 1966, pre­ ferred a reduction in spending as a means of achieving this goal rather than an increase in taxation. Opposition to the enlarged size of Federal spending in some cases was focused on social pro­ grams and in other cases on the high cost of the war in Vietnam. Reflecting this deep division of opinion, on both the over-all need for fiscal action and the means of implementing it, action on the proposed legislation was deadlocked until spring 1968. REVENUE AND The deadlock was resolved only when it became evident that the EXPENDITURE CONTROL ACT OF 1968 U.S. economy was experiencing renewed inflationary pressures. In addition to their effects on domestic economic activity, these pressures—by weakening the U.S. balance of payments—aggra­ vated the uncertainties in foreign exchange and gold markets that had followed the devaluation of sterling in November 1967. The implications of these domestic and foreign developments for U.S. monetary policy led to a further sharp general advance of interest rates in domestic financial markets. Under pressure for some posi­ tive fiscal action to reverse these unfavorable developments, a compromise was reached that involved both a surtax and a cut in spending. As a result, the total fiscal restraint package finally legis­ lated in June 1968 was more restrictive than many had expected. As finally passed, the Revenue and Expenditure Control Act of 1968 imposed a temporary 10 per cent surcharge on personal and corporate income taxes and at the same time set a ceiling on Fed­ eral outlays for fiscal year 1969. This ceiling was $6 billion below the $186.1 billion level of outlays that had been projected for this period in the January 1968 budget. Certain categories, including Vietnam-related spending, interest, veterans affairs, and social security payments, were exempted from the ceiling so the total of actual outlays for the fiscal year is generally expected to exceed $180.1 billion. Apart from these specific exemptions, however, the law reinforced the ceiling on total outlays by providing for cuts of $10 billion in requested appropriations, by requiring gradual re­ ductions in the number of Federal civilian employees, and by call­ ing for rescissions of $8 billion in such unobligated balances as remain available after June 30, 1969. Prospects for expenditures. The administration in its summer budget review gave a revised projection of fiscal year 1969 out- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY IN THE 1960’s 717 lays. Spending for programs exempted from expenditure control has been revised upward relative to the January budget and some nonexempted programs—such as farm price supports and medic­ aid, in which outlays reflect conditions not subject to executive ESTIMATED OUTLAYS FOR FISCAL YEAR 1969 Based on summer budget review (In billions of dollars) Total Federal outlays—January 1968 budget estimate.................................... 186.1 Plus: Estimated increases for programs exempt from expenditure control................................................................................................... 4.4 Vietnam-support operations................................................................. 2.3 Interest.............................................................................................................9 Veterans benefits and social security trust funds................................ 1.1 Tennessee Valley Authority.................................................................. * Plus: Selected increases in programs not exempt............................................ 1.2 Farm price support purchases......................................................................7 Welfare grants (including medicaid)............................................................5 Less: Budget cuts and other reestimates 1 —7.2 Department of Defense, military and military assistance.................—2.8 Net lending..............................................................................................—1.2 All other expenditures............................................................................—3.2 Equals: Federal outlays—Summer budget review........................................... 184.4 ♦ Less than $50 million. i Net budget cuts exceed $6.0 billion because the estimated increases in nonexempt pro­ grams have been absorbed by other offsetting reductions. Noth.—Components may not add to totals due to rounding. control—are also indicated to rise above earlier projections, as shown in the table. Details on planned spending cuts and reesti­ mates by individual Federal agencies are shown in the review. Prospects for receipts. In addition to being affected by legisla­ tive constraints on spending, the Federal budget deficit for fiscal year 1969 will be significantly affected by a number of influences on receipts. Among these, the surtax is most important—its full­ year liability at 1968 income levels is estimated at $10.2 billion in the Ways and Means Committee conference report. Economic growth is also expected to increase Federal receipts, although the amount of increase depends on the degree to which the new fiscal package restrains expansion in current dollar GNP. Beyond these influences, several other factors will also help to bolster receipts in fiscal 1969 relative to fiscal 1968. (1) The increase in social security payroll tax ceilings from Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 $6,600 to $7,800, which became effective in January 1968, will have most of its positive effect on revenues only beginning with the third quarter of 1968 because calendar year wages and salaries of most employees will not exceed $6,600 before that time. More­ over, payroll taxes for social security programs are scheduled to increase, for employees and their employers combined, from 8.8 to 9.6 per cent, effective January 1, 1969. Together these two changes are expected to add about $5 billion to total receipts at an annual rate. (2) The retroactive feature of the surcharge legislation will result in Federal surtax collections during fiscal year 1969 in ex­ cess of 12 months’ worth of tax accruals under the surcharge rates because the surtax—which became effective on July 15—is retro­ active to January 1, 1968, for corporations and to April 1, 1968, for individuals. Moreover, 15 months’ worth of corporate tax payments under the further speed-up provisions of the new law will occur in fiscal 1969. These provisions speed up tax payments of corporations by gradually eliminating most of the previous exemption of the first $100,000 of tax liability from pay-as-yougo. In addition they raise from 70 to 80 per cent the percentage of tax liability that must be paid annually to avoid penalty. (3) Finally, the Federal Government has provided for a more abrupt change in personal withholdings than in calendar-year tax liabilities. Withholding rates (except for the lowest two income tax brackets, to which the surtax is not applicable) were increased by 10 per cent effective July 15 and are scheduled to drop by 10 per cent next July 1, whereas calendar-year personal tax liabilities (again excepting the lowest two brackets) increase by 7.5 per cent for calendar year 1968 and 5 per cent for calendar year 1969. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ In all cases the analyses and conclusions nors of the Federal Reserve System and of set forth are those of the authors and do the Federal Reserve Banks undertake studies not necessarily indicate concurrence by the that cover a wide range of economic and Board of Governors, by the Federal Reserve financial subjects, and other staff members Banks, or by members of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of some instances the Board finances similar the studies or papers that are summarized studies by members of the academic profes­ below are available in mimeographed form. sion. The list of Federal Reserve Board publica­ From time to time the results of studies tions at the back of each Bulletin includes that are of general interest to the economics a separate section entitled ‘‘Staff Economic profession and to others are summarized— Studies” that enumerates the studies for or they may be printed in full—in this sec­ which copies are currently available in that tion of the Bulletin. form. Study Summary THE REGULATION OF SHORT TERM CAPITAL MOVEMENTS: WESTERN EUROPEAN TECHNIQUES IN THE 1960’s Rodney H. Mills, Jr.—Staff, Board of Governors Prepared as a staff paper in May 1968. During the present decade central banks in central bank to commercial banks in order most of the larger countries of continental to assist the functioning of the international Western Europe have applied techniques, of payments system. Where the main objective widely varying scope and severity, to affect was to reinforce internal monetary control, movements of short-term funds into or out the regulations applied to international of the country. As distinct from the ex­ short-term capital movements were invari­ change controls employed in earlier years ably designed to limit inflows of funds, or to protect the balance of payments, the pur­ encourage outflows, as a means of restrain­ pose of these more recent measures was ing credit expansion. Consequently, most of usually to strengthen the authorities’ con­ the regulations were abolished or not force­ trol over domestic monetary conditions. In fully used after inflationary pressures in some instances, however, the aim was to most of Western Europe abated in the latter shift foreign exchange reserves from the part of 1966. 719 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN o SEPTEMBER 1968 Commercial banks have been the object changes in domestic monetary conditions. of most of the regulations; for nonbanks, (2) Germany, Italy, and Switzerland there has been a general disinclination to adopted techniques to encourage banks to interfere directly with foreign borrowing place funds abroad. In the case of Germany, and lending activities. Germany and Italy these techniques together with the discour­ have made the most vigorous use of tech­ agement of foreign borrowing held the rise niques for regulating short-term capital in the German banks’ net foreign liabilities movements as a tool of credit control, in to very small proportions even though large part because neither of these countries monetary conditions became extremely tight. has resorted to quantitative limits on bank (3) Germany, Switzerland, and France took credit expansion. defensive measures to discourage foreign The techniques employed by the central residents from placing funds in the country. banks vary greatly in detail but may be (4) France and Sweden issued regulations grouped into five broad categories. (1) Ger­ governing the foreign currency position of many discouraged foreign borrowing by banks. (5) The Netherlands and Sweden commercial banks, while Italy, the Nether­ restricted the freedom of nonbanks to im­ lands, and Sweden subjected such borrow­ port or export short-term funds to allow ing to direct limitations. In Italy, the force­ other instruments of internal monetary con­ ful use of these limitations caused major trol to function more effectively. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This thirteenth joint interim report reflects This report was prepared by Charles A. the Treasury-Federal Reserve policy of Coombs, Vice President in charge of the making available additional information on Foreign Department of the Federal Reserve foreign exchange operations from time to Bank of New York, and Special Manager, time. The Federal Reserve Bank of New System Open Market Account. It covers the York acts as agent for both the Treasury and period March to early September 1968. Pre­ the Federal Open Market Committee of the vious reports were published in Bulletins Federal Reserve System in the conduct of for September and March of each year be­ foreign exchange operations. ginning with September 1962. Over the past year international financial the present official price of gold and the net­ markets were swept by successive waves of work of fixed parities embodied in the Brctspeculation almost unprecedented in their ton Woods Agreements. intensity. The war in the Middle East, the By midsummer, both the gold and foreign devaluation of sterling, the massive specula­ exchange markets had settled down to tive drive on the London gold market, the orderly trading in a reasonably calm atmos­ French crisis, and continuing payments im­ phere, although in late August rumors of a balances among the major trading countries, revaluation of the mark generated heavy all subjected the international financial sys­ speculative flows of funds to Germany. On tem to severe strains. Yet world trade and September 9, after the monthly meeting at payments continued to expand without in­ Basle, a communique was issued by the Bank terruption, as the monetary authorities of for International Settlements (BIS) and the the major countries joined forces to deal with group of 12 central banks announcing that each new crisis by further strengthening the the BIS, backed by those banks, acting cooperative arrangements that have been where appropriate on behalf of their govern­ built up in recent years. Of decisive impor­ ments, was making available immediately a tance was the agreement reached at the meet­ $2.0 billion medium-term facility to the ing of central bankers in Washington in Bank of England. This arrangement should March 1968 to suspend official intervention effectively shield sterling from pressures aris­ in the London gold market and to separate ing out of conversion of sterling balances by private and official transactions in gold into sterling-area countries. two distinct circuits. These new arrange­ As in earlier years, the Federal Reserve ments not only insulated official gold stocks swap network provided the first line of de­ from the demands of private speculators but, fense against speculative pressure in the in conjunction with the Stockholm Agree­ exchange markets. In order to insure an ment on Special Drawing Rights, reaffirmed ample margin of safety against the mounting worldwide official support for maintaining pressures of “hot” money flows, the network 721 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 TABLE 1 FEDERAL RESERVE RECIPROCAL CURRENCY ARRANGEMENTS (In millions of dollars) Increases Amount of Amount of facility facility Institution Jan. 1, 1967 1968 Sept. 6, 1967 1968 May 17 July 20 Nov, 30 Dec. 15 Mar. 18 July 3 Austrian National Bank....... 100 100 National Bank of Belgium... 150 75 . . 225 Bank of Canada............ 500 250 250 I ,000 Bank of Denmark................. 'ioo 100 Bank of England................... 1 ,350 150 500 2,000 Bank of France..................... 100 600 700 German Federal Bank.......... 400 350 250 1 ,000 Bank of Italy......................... 600 2150 750 Bank of Japan....................... 450 300 250 1 ,000 Bank of Mexico.................... 1130 130 Netherlands Bank................ 150 75 175 400 Bank of Norway................... 1100 100 Rank of Sweden..................... 100 100 50 250 Swiss National Bank............ 200 50 150 200 600 Bank for International Settlements: Swiss francs/doliars.... 200 ...................... 50 150 200 ............6..0..0..... Other authorized European currencies/do liars........... 200 100 300 400 1 ,000 Total........................... 4,500 330 200 1 ,750 300 2,275 600 9,955 1 New facility. 2 Effective Nov. 27, 1967. was expanded in several major steps, more April. These commitments were completely than doubling the size of the facilities avail­ liquidated during the spring and summer able in mid-1967, to the present level of months, largely through Federal Reserve nearly $10 billion of reciprocal credit lines acquisitions of sizable amounts of continen­ (Table 1) with 14 central banks and the tal European currencies made available by BIS. first French and then British drawings on the As noted in the previous report in this IMF. By July 3 only $135 million of debt series, drawings by the Federal Reserve on in Swiss francs remained, and this residual its swap network partners had risen to a was liquidated through a U.S. Treasury issue record peak of $1.8 billion in late December of a Swiss franc security to the Swiss Na­ 1967, but reversals in the flow of funds, to­ tional Bank. gether with a U.S. drawing on the Interna­ In late July, however, renewed flows of tional Monetary Fund (IMF) and other short-term funds into Switzerland, in re­ special transactions, enabled the Federal sponse to a credit squeeze in that country, Reserve to reduce these commitments to necessitated new Federal Reserve drawings $557 million by early March 1968 (Table on the Swiss National Bank totaling $145 2). After the gold rush excited new flows of million. This debt was subsequently paid hot money over the exchanges, Federal Re­ down to $130 million in August, and as of serve swap commitments rose once more, September 6 represented the only drawings reaching a peak of $982 million by late outstanding by the Federal Reserve. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 723 TABLE 2 FEDERAL RESERVE DRAWINGS OUTSTANDING ON SWAP LINES (In millions of dollars) Dec. 31, Mar. 8, Apr. 26, June 30, July 16, Sept. 6, Institution 1967 1968 1968 1968 1968 1968 Austrian National Bank..................................................... National Bank of Belgium.................................................. >105.8 34.5 55.1 Bank of Canada.................................................................. National Bank of Denmark................................................. Bank of England................................................... .............. Bank of France..................................................................... German Federal Bank....................................................... 350.0 275.0 Bank of Italy......................................................................... 500,0 325.0 500.0 189.0 .. Bank of Japan....................................................................... Bank of Mexico.................................................................... Netherlands Bank................................................................. 217O.O 65.0 20.0 Bank of Norway................................................................... Bank of Sweden................................................................... Swiss National Bank............................................................. 250.0 77.0 77.0 135.0 .. 130.0 Bank for International Settlements: Swiss francs/doliars....................................................... 400.0 55.0 55.0 Other authorized European currencics/dollars. . ............ Total........................................................................... 1 ,775.8 556.5 982.1 324.0 130.0 1 Peak commitment of $150 million reached on Nov. 13, 1967. 2 Peak commitment of $185 million reached on Jan. 4, 1968. As part of a joint effort to stabilize the from $100 million to $700 million. In that exchange markets in the wake of the March month, the National Bank of Denmark made gold rush, the Federal Reserve and the U.S. its first drawing—$25 million—on its $100 Treasury underwrote forward operations in million reciprocal credit facility with the Swiss francs and Dutch guilders by the Cen­ Federal Reserve. (This drawing was repaid tral Banks of Switzerland and the Nether­ in early September.) lands. These operations lifted the total of Likewise in June the Netherlands Bank forward market commitments by the Federal made two drawings totaling $54.7 million, Reserve and the Treasury from the $60.4 also the first use by the Dutch authorities of million outstanding on March 8 to $155.2 their $400 million facility with the Federal million by the end of March. In subsequent Reserve. (The Netherlands Bank repaid the months reversals in the flow of funds per­ initial $25 million drawing at maturity early mitted a complete liquidation of these for­ in September.) Late in June, in a type of ward commitments. drawing that has now become routine, the One of the noteworthy features of the past BIS drew a total of $111 million from the 6 months was the broadening-out of foreign Federal Reserve for financing intervention in drawings on the Federal Reserve to include the Euro-dollar market to relieve the mid­ central banks not hitherto making use of year squeeze. (This BIS drawing, with fur­ these facilities. In June the Bank of France ther minor drawings by the BIS during the drew the full $100 million then available summer, was fully liquidated, and the $1 under its standby swap agreement with the billion credit line has reverted to a fully Federal Reserve, which was enlarged on July available standby basis.) In June the Bank 3—in conjunction with $700 million of of Canada repaid $125 million against a short-term credit lines from other sources— $250 million drawing in January, and in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 July the remaining balance was fully liqui­ TABLE 3 dated. Finally, in June, the Bank of England U.S. TREASURY SECURITIES—FOREIGN CURRENCY SERIES fully repaid a balance of $1.2 billion in swap (In millions of dollars equivalent) debt to the Federal Reserve, utilizing for such repayment a substantial part of a draw­ Issues or redemptions (—) Out­ 1968 Out­ ing from the IMF, together with dollars from Issued to— standing standing Jan. I, Sept. 6, additional acquisitions by the Federal Re­ 1968 July I - 1968 Sept. 6 serve and U.S. Treasury of sterling on a covered or guaranteed basis. The $2 billion Austrian National Bank....................... 50.3 50.3 swap line between the Federal Reserve and Na B ti e o lg n i a u l m B .. a . n .. k .. .. o .. f ........ 60.4 60.4 the Bank of England thus reverted to a fully German Federal Bank. 601.2 925.7 German banks.......... 125.1 available standby basis. Bank of Italy............. 124.8 125.4 Netherlands Bank.. . . 65.7 As of the end of June, therefore, five Swiss National Bank.. iioj 444.5 Bank for Inter­ foreign banks had drawn on their swap lines national Settlements1 152.2 207.7 with the Federal Reserve to the extent of Total................... 1,199.6 290.7 250.6 262.5 2,004.8 $415.7 million. After subsequent drawings and repayments by these and other banks, 1 Denominated in Swiss francs. Note.—Discrepancies in amounts are due to valuation adjustments* the total outstanding had risen to a moder­ refundings, and rounding. ately higher figure by September 6. Since the inception of the Federal Reserve swap net­ of outstanding Federal Reserve swap draw­ work in March 1962, total credit provided ings on the German Federal Bank. On the under the network has amounted to some­ other hand, by early August the Treasury what more than $15 billion, of which nearly had purchased sufficient marks in the market $6 billion was drawn by the Federal Reserve to redeem prior to maturity a 22-month, and roughly $9 billion by foreign central $50.3 million note previously issued to the banks and the BIS. German Federal Bank. Thus, as of Septem­ During the period under review, the U.S. ber 6, total securities denominated in Ger­ Treasury increased its indebtedness in for­ man marks, including those issued to Ger­ eign currency securities by $513.1 million to man banks, stood at $1,050.8 million $2,004.8 million (Table 3). In conjunction equivalent. with the German Government’s successive With respect to securities denominated in agreements to offset or neutralize part of other foreign currencies, the Treasury in U.S. military expenditures in Germany, the July issued a 3-month certificate of indebted­ Treasury issued to the German Federal Bank ness in Swiss francs for $54.7 million to the in April and again in August two more $125 BIS and sold a $133.7 million 3-month cer­ million equivalent special 4 Ufa -year securities tificate to the Swiss National Bank to re­ denominated in marks. Also, in conjunction finance U.S. short-term commitments in with the new agreement related to military Swiss francs. The Treasury used the proceeds expenditures for the fiscal year 1968, in June of the certificate issued to the BIS to liqui­ the Treasury issued the $125.1 million date an outstanding sterling/Swiss franc equivalent of special medium-term securities swap with that institution and sold to the to six German banks; the mark proceeds System nearly all the proceeds of the security were sold to the System to repay the balance issued to the Swiss National Bank for repay- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 725 ment of an outstanding swap obligation to the devaluation, reconsidered the question of that bank. diversifying their reserves and began shifting a portion of their holdings out of sterling and into other reserve assets. STERLING In the backwash of the gathering storm in The events leading up to the British Govern­ the gold market, the pound dipped below its ment’s decision last November to devalue $2.40 parity for the first time on March 4. sterling, and the immediate impact of this The following week, amid the climactic move on the gold and exchange markets, scramble for gold in London, the February were discussed in some detail in the previous trade figures for the United Kingdom were article in this series (see Federal Reserve announced; these figures showed a heavy Bulletin for March 1968). By the end of deficit, with imports at record levels. The November the initial wave of funds moving next day—the last day of the Gold Pool back into sterling had permitted the Bank of operations—sterling tumbled to $2.39. The England to repay $300 million of the $ 1,350 closing of the London gold market on Fri­ million which had been drawn under its swap day, March 15, in advance of meetings in line with the Federal Reserve by the time of Washington by representatives of the central devaluation. banks active in the Gold Pool, was accom­ Further progress in repaying short-term panied by a declaration of a bank holiday the credits was halted, and then reversed during same day. With the London market closed, the spring, by a combination of adverse de­ there was very little dealing in sterling either velopments. After 3 years of disappointed on the Continent or in New York. However, hopes, the market maintained a skeptical when isolated trades began to appear at rates wait-and-see attitude concerning sterling’s below the $2.38 floor, the Federal Reserve prospects. Hectic speculation in the gold —under arrangements worked out with the market from November until mid-March Bank of England—effected small purchases kept the exchanges on edge, and sterling re­ in New York which quickly restored the rate acted sensitively to each new threat to the to $2.3825. ' ’ international financial system. Against this On March 17 the Washington communi­ psychological background, the lag in any que of the governors of central banks partic­ improvement in the trade account and the ipating in the Gold Pool announced several nagging fear that the Government’s program important decisions in support of sterling to control expenditures and limit private de­ and the exchange markets in general. Spe­ mand would be thrown off course by labor cifically, the governors “agreed to coop­ or political unrest kept sterling generally on erate fully to maintain the existing parities the defensive. The discount on forward ster­ as well as orderly conditions in their ex­ ling widened sharply at times, not only dis­ change markets . . . [and] to cooperate even couraging any inflow of interest-sensitive more closely than in the past to minimize funds, but also contributing to withdrawals flows of funds contributing to instability in of maturing short-term placements of foreign the exchange markets.” Taking note of the funds from London. In addition, several importance of the pound sterling in the inter­ sterling-area countries, having suffered an national monetary system, they also an­ exchange loss on their reserves as a result of nounced that the total of credits immediately Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 available to the U.K. authorities (including I Exchange rates: Sept. 1967 to Sept. 1968 1 | N.Y. noon buying rates on Wed. of each week the IMF standby) would be raised to $4 billion. As part of this increase, the Federal Reserve swap arrangement with the Bank of England was increased by $500 million to $2 billion. At the same time, the British au­ thorities announced that the London gold market would remain closed for the re­ mainder of March. On Monday, March 18, the decisions set forth in the communique brought about a clear change of atmosphere in the exchanges; sterling, in particular, was bid for strongly, 24.8139 and it rebounded to above par. The next day the British Government announced the longawaited 1968-69 budget, calling for very SWITZERLAND substantial increases in indirect taxes on con­ 22.8685 sumer purchases, a sharp rise in the selective employment tax (on employment in service industries), and a 1-year tax on investment 22.4719 incomes, among other provisions. At the same time the Government announced that it would seek legislation to limit annual wage increases to 3.5 per cent and to defer or sus­ .1589 pend price or wage increases for up to a year. In the wake of a favorable market response to the budget and the Washington communi­ 27.4160 que, the Bank of England on March 21 re­ duced its discount rate by 1/2 percentage point to 716 per cent, the first reduction since the move to 8 per cent at the time of devaluation. Along with the strengthening of spot sterling, discounts on the forward pound narrowed from the 10 to 12 per cent range, where they had been on March 13 to 15, to 4 per cent per annum for 3-month contracts by early April. Despite the improved atmosphere in the latter half of March, featured by the success­ Upper and lower boundaries of panels represent official buying and selling rates of dollars against the various currencies. However, the ful conclusion of the Group of Ten talks in Bank of Canada has informed the market that its intervention points in transactions with banks are $0.9324 (upper limit) and $0.9174 Stockholm that ironed out the last major (lower limit). Color rule indicates par value of currency. differences on the Special Drawing Rights *: indicates change as of Nov. 18, 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 727 facility, the month as a whole had been costly to U.K. reserves. The Bank of Eng­ land drew $50 million on its swap with the Federal Reserve (bringing the amount out­ standing to $1,100 million) while making use of other sources of credit including the U.S. Treasury. April was a much quieter month for ster­ ling and for international markets in general. Nevertheless, another monthly report of a large British trade deficit at a time when observers were looking for clear signs that devaluation was beginning to work created an uneasy undertone in the market, and this Covered interest rate differential grew more pronounced in May. The spot 8 IN FAVOR OF EURO-DOLLARS rate gradually drifted below par, and the forward discount widened again, reaching nearly 7 per cent per annum by the end of May. At the same time Euro-dollar rates, which had dropped back from the peaks reached at the time of the mid-March gold IN FAVOR OF U.K. LOCAL AUTHORITY DEPOSITS fill II crisis, began to rise again, with the rate on J F M A M J JAS 1968 3-month deposits moving from just under 6 per cent in early April to more than 7 per * indicates weekly average of daily rales. cent by the end of May. As a result, the covered incentive to move foreign funds out subsequently borne out—that the next of local authority deposits into Euro-dollars monthly trade figures would again look shot up to nearly 6 per cent, adding to the bleak, all added to market pessimism. In the strains on sterling that reemerged in May. middle of May the crisis in France added a During this April-May period, U.S. banks new dimension of uncertainty to the inter­ —spurred by tightening credit conditions in national monetary situation and helped to this country—turned heavily to the Euro­ demoralize the market even further. As a dollar market in search of funds, adding result of these various disturbing factors, in about $1 billion to their takings through May the pattern of heavy pre-weekend sell­ their branches during the 2 months. Al­ ing of sterling reemerged for the first time though the sharp run-up in Euro-dollar rates since devaluation at heavy cost to U.K. re­ increased the incentive to switch out of serves. By mid-June the Bank of England pounds, developments in the United King­ had drawn a net of $ 100 million more under dom were also causing concern. Setbacks the swap arrangement with the Federal Re­ for the Labor Party in by-elections, reports serve, raising the total outstanding to $1.2 of dissension in labor ranks over the con­ billion. tinuation of the austerity program, fear— Pressures on sterling subsequently sub- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 sided, and it was announced that the United appropriate on behalf of their governments, Kingdom would draw the full $1.4 billion would join with the BIS in making the fa­ available under the standby credit with the cility available to the Bank of England, that IMF to repay outstanding short-term central the arrangements would be brought into bank credits. A substantial part of this IMF force immediately, and that the earlier swap drawing was used on June 19 to reduce the arrangement of June 1966 is expected to be $1.2 billion of drawings then outstanding liquidated and terminated by 1971. under the Federal Reserve arrangement. The remainder of these drawings were cleaned FRENCH FRANC up on the same date by means of Federal Reserve and U.S. Treasury purchases of Late in 1967 the French current account was sterling on a covered or guaranteed basis beginning to recover from the modest deficit from the Bank of England. To permit such that had emerged during the previous year. purchases by the Federal Reserve, the Au­ With this more favorable development in the thorization for System Foreign Currency background, the franc remained above par Operations was amended to increase from ($0.20251/2) during the early months of $200 million to $300 million equivalent the 1968. Nevertheless, there were occasional amount of sterling, on a covered or guaran­ periods of pressure on the franc, arising from teed basis, that could be held for System reactions to the new U.S. balance of pay­ working balances. Thus, as of the end of ments program announced on January 1, June the $2 billion swap arrangement be­ shifts of funds into the Euro-dollar market tween the Federal Reserve and the Bank of by French banks, and the March speculative England had reverted to a fully available stampede into gold. By the end of April the standby basis (although certain other credit franc had drifted to a level just above par, facilities, including those from the U.S. from which there was little change well into Treasury, were still in use). May. During July and August confidence in On May 17, however, student rioting sterling was influenced greatly by the ups broke out, followed shortly by labor strikes and downs of the published figures on the in Paris and similar disorders elsewhere in U.K. trade account. A stabilizing influence France. Within days the strikes had virtually on the sterling market was the announce­ paralyzed the French economy, and on May ment, early in July, that general agreement 20 the absence of personnel forced nearly had been reached on a new central bank all French banks to close. For all practical facility-—amounting to some $2 billion and purposes, this also closed the Paris exchange covering a 10-year period—to be extended market and complicated delivery of francs to the Bank of England to offset reductions in exchange dealings in other countries. in sterling balances of overseas sterling coun­ Trading in spot francs continued in those tries. After British authorities had consulted markets, but at sharply lower levels. with sterling-area countries, the arrange­ With the French markets closed, the Bank ments were completed at the September of France called upon the Federal Reserve meeting of central bankers at Basle. The Bank of New York to help maintain franc communique from that meeting, issued Sep­ quotations within declared limits by pur­ tember 9, confirmed these developments and chasing spot francs for the account of the noted that 12 central banks, acting where Bank of France. Subsequently, the Bank of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 729 France made parallel arrangements to cover forces in the elections at the month-end European markets through the BIS. For a cleared away one area of uncertainty beset­ few days the franc fluctuated just above its ting the market and, although the selling of floor ($0.2010*/2 ), but as the political crisis francs persisted thereafter, the market fever deepened, the rate fell to the floor level and abated. had to be heavily supported. Even though For May the Bank of France announced banks were closed in France, speculative a reserve loss of $307 million, and in June flows from France to Switzerland and into a further loss of $203 million was recorded. the Euro-dollar market grew to substantial But sizable credit operations had also been volume, and at the end of May the French initiated. In June the Bank of France bol­ Government imposed exchange controls over stered its reserves by drawing the full $100 resident capital transfers abroad; nonresi­ million then available under its swap line dent transactions remained free of controls, with the Federal Reserve, the first drawing however. by that bank since the inception of the ar­ In early June the selling abated somewhat rangement in March 1962. In addition, after President de Gaulle’s call for national France drew $885 million from the IMF— elections raised hopes that a beginning was representing its gold tranche and other draw­ being made toward restoring order in ing rights resulting from previous Fund use France. Evidence of a scattered return to of French francs, including those supplied work by French workers also helped im­ by France under the General Arrangements prove the atmosphere. Moreover, the Bank to Borrow. (As described in other sections of France was able to resume its regular ac­ of this report, the Federal Reserve was able tivities and make its presence felt in support to acquire certain currencies drawn by of the franc on the Continent. French banks France, and it used them to reduce System began operating again, and on June 7 the drawings on swap lines with other central Paris bourse opened its doors for the first banks.) Thus the cost of official support for time since May 20. the franc in May and June came to $1.5 But the reopening of normal channels of billion. Part of this reserve loss took the foreign exchange dealings brought with it form of sales of gold by the French author­ further selling of francs. Despite the gradual ities, which they used to replenish dollar return to work by French workers during balances, including $220 million of gold June, it was feared that the large wage in­ sold to the U.S. Treasury. creases necessary to bring an end to the work With the announcement of the June re­ stoppage might initiate a wage-price spiral serve figures in early July, Finance Minister that could seriously weaken French interna­ Couve de Murville (later named Premier) tional competitiveness. As a result selling strongly reaffirmed the Government’s inten­ stepped up, based in large part on a precipi­ tion to defend the franc parity. As evidence tate reversal of commercial leads and lags of that resolve, the French authorities broad­ despite the exchange controls imposed at the ened their defense of the franc to include an end of May. The French Government’s an­ increase in the discount rate of the Bank of nouncement of a program of temporary im­ France from 31/2 per cent to 5 per cent, a port quotas and export subsidies to bolster tightening of exchange controls, and new the franc did.little to stem the speculative taxes. Shortly thereafter, on July 10, the tide. But the sweeping victory of the Gaullist Bank of France announced a $1.3 billion Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN o SEPTEMBER 1968 package of new credit lines from the Federal currency’s underlying strength and the mar­ Reserve, the central banks of Belgium, Ger­ ket’s potential for a rapid reversal of direc­ many, Italy, and the Netherlands, plus the tion with a new outbreak of speculative de­ BIS. Participation by the United States took mand. During the gold crisis in March, the form of a $600 million increase in the speculation on a revaluation of the mark Federal Reserve swap line with the Bank of touched off such a burst of demand. The France—raising that facility to $700 mil­ German Federal Bank permitted a sharp rise lion. in the spot rate to make marks more expen­ Despite these measures in support of the sive for speculators but nevertheless had to franc, market pressures continued. Through­ take in huge amounts of dollars. out July there were intermittent bursts of These heavy shifts of funds into marks selling, particularly in advance of weekends. would have severely aggravated the strains Bank of France losses remained substantial then being felt in the Euro-dollar market and but declined significantly from the June in sterling had the German Federal Bank not level. The large outflows from France in the immediately reoffered the dollars it received period brought little upward pressure on to its commercial banks on a swap basis, for other currencies as those funds seemed to repurchase later at attractive rates. The swap remain largely in the dollar market. rates were equivalent to a premium on the In August the announcement of the July forward mark of 2 per cent per annum, more trade results provided some encouragement, than Vz percentage point below the market; with the trade balance rebounding to surplus the German Federal Bank concluded $220 as the May-June export backlogs were million in swaps at those rates. As the week cleared away and imports rose only by a fur­ of March 11-15 progressed, the bank pur­ ther small amount. Although pressure on the sued this operation—gradually increasing franc in the spot market continued, the re­ the premium on the forward mark to 4 per serve drain diminished. On September 4 the cent per annum. French authorities announced the lifting of On Friday, March 15, with unprece­ exchange controls first imposed at the end dented uncertainties in the exchanges arising of May. out of the closing of the London gold market and the emergency central bank meeting con­ vening in Washington over the coming week­ GERMAN MARK end, speculation seemed to focus on the Germany’s trade accounts remained very mark, and funds flowed into Germany from strong during the early months of 1968 as all over Europe and the United States. By they had throughout 1967. It was evident, the close of trading in Frankfurt, the Ger­ moreover, that Germany’s resurgent growth, man Federal Bank had purchased $400 mil­ as well as its accompanying stimulus to ac­ lion. After the Frankfurt market closed, the tivity in other Common Market countries, Federal Reserve Bank of New York con­ was being accomplished with few strains on tinued to offer marks for the account of the Germany’s productive potential. Thus the German Federal Bank and sold a moderate downtrend in the spot mark early in the year amount that afternoon to help meet the spill­ —resulting from large short- and long-term over of demand. Although the Federal capital outflows—tended to disguise that Bank’s gross intake of dollars in March Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 731 amounted to $800 million, the bank was thereby encouraging German banks to rein­ able to return the bulk of its intake to the vest abroad the proceeds of maturing swap market through swap operations with the contracts concluded in March. As capital commercial banks. The Federal Reserve outflows developed, the Federal Bank sold participated in the operation, as it had done about $390 million of spot dollars, while in November, by reactivating its swap line permitting the spot mark to slide gradually with the Federal Bank in order to absorb lower. Moreover, with the German economy $300 million from that bank, thereby pro­ still not absorbing all the liquid resources viding cover for a part of that bank’s forward that were being made available in the mar­ purchases of dollars. ket, the Federal Bank undertook $103 mil­ The firm support for the existing system lion in new swaps with the commercial of currency parities that emerged from the banks to facilitate short-term investments Washington meetings helped to reassure the abroad. Thus the authorities succeeded in highly nervous markets. News of the large returning to the market a very substantial general expansion in the Federal Reserve part of the dollars that had flowed in as a swap network, including an increase in the result of the maturing of the swap contracts line with the German Federal Bank to that had been concluded in March. $1,000 million, contributed importantly to At the same time, the System began to the reassurance. Under these circumstances, reduce its swap debt to the Federal Bank—■ the underlying liquidity of the Frankfurt using marks acquired from a correspondent market quickly reasserted itself, and the spot and some from balances to pay down the mark moved lower through the end of System’s outstanding swap obligations by March. In order to maintain an orderly mar­ $25 million. International currency uncer­ ket as the earlier heavy speculation un­ tainties flared up again in May, however, wound, the Federal Bank sold a sizable and led to a new round of revaluation ru­ amount of dollars. mors concerning the German mark, as mar­ Early in April, market sentiment was ket apprehensions over the failure of the buoyed by hopes that President Johnson’s U.K. trade position to show improvement peace initiative in Vietnam would bring an were compounded by uneasiness over fur­ early end to that conflict and an easing of its ther delay in the proposed U.S. tax sur­ associated strains on the dollar. Moreover, charge. Speculative demand for marks the near-unanimous agreement of the Group boosted the spot rate sharply in early May, of Ten representatives at Stockholm on a and the German authorities once again pur­ plan for Special Drawing Rights further con­ chased dollars. But the buying was not sus­ tributed to a strengthening of confidence in tained and quickly dissipated after the flat the dollar. Rising interest rates in the United denial of any revaluation plans issued on States and in the Euro-dollar market after May 10 by Dr. Karl Blessing, President of the increase of hi percentage point in Fed­ the German Federal Bank. Meanwhile, the eral Reserve discount rates to 514 per cent Federal Bank continued with its swap also exerted a strong pull on German short­ operations. term funds. At the end of May the market responded Through April the Federal Bank con­ favorably to the statement by Economics tinued its policy of domestic monetary ease, Minister Schiller, encouraging German com- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 mercial banks to export capital and stressing obligations in marks by $100 million to that the authorities intended to provide suffi­ $125 million as of June 21. Finally, near the cient domestic liquidity to support further end of June the U.S. Treasury issued to Ger­ business expansion in Germany despite the man banks special mark-denominated secu­ flow of funds abroad. Thus, with official ap­ rities equivalent to $125.1 million. The proval and ample resources available, for­ securities were issued in conjunction with eign borrowers placed additional issues in agreements reached with the German Gov­ the German capital market. One notable ernment to neutralize part of the costs of example of the broadly equilibrating influ­ stationing U.S. troops in Germany. The Sys­ ence of the outflow from Germany was the tem purchased these marks and used them to Canadian Government’s 5-year borrowing liquidate the last $125 million outstanding of 250 million German marks in late May. under the swap line with the Federal Bank. The borrowing not only served to bolster Market selling of German marks con­ Canadian official reserves and offset Ger­ tinued unabated in July and early August, many’s current-account surplus but at the reflecting in part reflows abroad from Ger­ same time afforded the Federal Reserve the man banks after midyear. By early August opportunity to purchase a sizable amount of the spot mark had declined to $0.24861/2, German marks. The Federal Reserve pur­ the lowest level since the 1961 revaluation, chased from Canada $25.2 million equiva­ and the German Federal Bank had supplied lent of the proceeds of the borrowing and some $230 million to the market. At the used them, together with $25 million more same time, both the Federal Reserve and the acquired from the market, to reduce its swap Treasury made sizable purchases of marks debt to the German Federal Bank to $225 in the New York market. On August 9, million equivalent. using the proceeds of its recent purchases, The month of June brought a further the Treasury redeemed in advance of ma­ increase in the flow of German capital seek­ turity a $50.3 million equivalent, 22-month ing employment abroad. The Federal Bank note held by the Federal Bank. On August provided sizable amounts of dollars for mar­ 19, in a further transaction related to the ket requirements, which reflected in part German Government’s agreement to offset conversion of the mark proceeds of Cana­ or neutralize U.S. troop costs in Germany, dian and Mexican long-term borrowings. the Treasury issued to the Federal Bank an­ Persistent demand for dollars in Frankfurt other medium-term security denominated in depressed the spot mark to parity by late marks equivalent to $124.4 million. This June, and with marks readily available in security was the first in a new series of four New York the Federal Reserve and the equal quarterly instalments that will eventu­ Treasury accumulated mark balances against ally total $500 million. (The fourth instal­ outstanding commitments. In addition, the ment of the earlier series of similar securities System purchased $50 million of marks sold to the Federal Bank had been issued in from the German Federal Bank when that April.) In addition, the German authorities bank replenished dollars sold to France in expected to pay about $100 million for pro­ connection with the French drawing on the curement of military equipment directly IMF. These marks, together with market from producers in the United States. purchases, were used to reduce System swap Thus, including the special Treasury secu- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 733 rities issued to German banks in June, as National Bank and the BIS. In order to ac­ noted above, and the new scheduled pur­ commodate such unusually large drawings chases by the Federal Bank, the German and provide for contingencies, resources Government had agreed to offset or neu­ available under each facility were raised in tralize some $725 million of U.S. troop­ several steps to $400 million by mid-Decem­ stationing costs in Germany. As of Septem­ ber. By the year-end, Federal Reserve draw­ ber 6, total U.S. Treasury securities denomi­ ings on the line with the National Bank had nated in German marks stood at $1,050.8 risen to $250 million, while the $400 million million. No short-term commitments under Swiss franc facility with the BIS had been the Federal Reserve swap line were out­ fully utilized, for a total of $650 million. standing, however. Moreover, U.S. authorities had undertaken a Toward the end of August, heavy specula­ total of $65.5 million in forward commit­ tive buying of marks resulted from renewed ments to the market in mid-December, when market rumors that a revaluation of the mark the Swiss National Bank initiated forward was imminent. The German authorities sales jointly for the System and the Treasury promptly rejected such a move, noting that in order to deal with emerging speculative capital outflows from Germany in 1968—• pressure in that market. particularly those of long-term funds—have With the turn of the year, following Presi­ more than offset Germany’s current-account dent Johnson’s balance of payments mes­ surplus. Nevertheless, within a few days’ sage, a substantial reflux of funds from time, the spot mark rose virtually to its ceil­ Switzerland developed. The reflow enabled ing, and the German Federal Bank had to the Federal Reserve to purchase sizable absorb very sizable amounts of dollars. As in amounts of francs directly from the National other recent periods of temporary inflows to Bank. These were used, together with mod­ Germany, the Federal Bank acted to mitigate erate purchases in the market and in special the impact on international financial markets transactions, to reduce swap obligations in by rechanneling these dollars to the market Swiss francs by $418 million. Moreover, in through swap transactions with commercial early March the Federal Reserve paid off a banks. In addition, U.S. authorities sold a further $ 100 million of its Swiss franc draw­ moderate amount of marks in the forward ings through Treasury issuance of a security market. denominated in Swiss francs. Thus, by March 8 the System’s outstanding swap commitments had been reduced by $518 SWISS FRANC million from the $650 million peak to $132 In 1967 Switzerland attracted very heavy million. Earlier, in February, the U.S. au­ inflows of liquid funds seeking refuge from thorities had also paid off at maturity the currency uncertainties arising out of the war first $10 million of forward sales contracts in the Middle East, the devaluation of ster­ falling due to the market. This left $55.5 ling, and the subsequent speculative rush in million still outstanding, divided evenly be­ the gold markets. With the Swiss National tween the System and the Treasury. Bank accumulating large amounts of dollars The renewal of severe tensions in the gold during the year, the Federal Reserve drew market in March brought a strengthening in heavily on its Swiss franc swap lines with the the spot franc, although the advance was re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 tarded by demand for dollars to buy gold. forward contracts, thereby reducing these After the Zurich markets had closed on commitments to $68.5 million. March 14, demand for francs intensified The month of May brought a strengthen­ with the growing uncertainties in the ex­ ing of the spot franc. Early in the month, changes, and the Federal Reserve Bank of market uncertainties arising from a spate of New York sold moderate amounts of francs rumors of a revaluation of the mark and for account of the Swiss National Bank. The growing apprehensions over sterling gen­ next day, with the London market closed erated speculative demand for francs. In and traders highly apprehensive over the addition, there were indications that Italian likely outcome of the weekend meetings in interests were buying francs to liquidate Washington, demand for Swiss francs in­ credits that were becoming expensive rela­ creased, and the Swiss National Bank pur­ tive to loan rates elsewhere. Later in the chased dollars after indicating to the market month the political and economic upheaval that it would sell francs at the official upper in France pushed the Swiss franc still higher. intervention point of $0.232814, rather By the end of May, the flight of French capi­ than $0.231714 as it had done in recent tal to Switzerland lifted the Swiss franc to its years. ceiling and the Swiss National Bank took in But the bank’s intake was less than might a sizable amount of dollars. The System sub­ have been expected, given the tense inter­ sequently absorbed most of that intake by national monetary situation, and it was not drawing $73 million under the swap facility necessary for the Federal Reserve to bring with the Swiss National Bank—raising Fed­ its Swiss franc swap lines into play. Demand eral Reserve commitments to the Swiss for forward francs was relatively heavier, National Bank to $ 150 million. On the other however, and the Swiss National Bank, act­ hand, the remaining $55 million of Federal ing jointly for the Federal Reserve and the Reserve swap debt to the BIS was fully Treasury, sold a total of $56 million equiva­ repaid in May through a Treasury swap lent of forward francs, raising U.S. forward of sterling against Swiss francs through the commitments to the market to $111.5 BIS. million. In June quotations on the Swiss franc The news of the decisions taken at the moved irregularly lower after the middle of Washington meetings calmed the market the month, as the National Bank provided considerably. One result of those meetings swap facilities to help Swiss banks meet their was a further increase in the Swiss franc midyear needs. Such short-term swaps by the swap facilities with the Swiss National Bank Swiss National Bank reached a total of $430 and the BIS of $200 million each, bringing million, with the bank reinvesting the entire the resources available under each arrange­ amount of the dollar proceeds in the Euro­ ment to $600 million. In succeeding weeks dollar market, either directly or through the liquidity conditions remained relatively easy BIS. Toward mid-June, the System acquired in the Swiss money market, and with the ex­ $15 million of francs from a correspondent change markets generally calmer, it proved and with these francs it reduced commit­ possible during April for the Federal Re­ ments to the Swiss National Bank to $135 serve and the U.S. Treasury to liquidate $43 million by June 18. In addition, the U.S. million equivalent of maturing Swiss franc authorities liquidated $3.0 million of matur- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 735 ing forward commitments to the market—■ its swap line with the Swiss National Bank—using francs purchased from the Swiss drawing a total of $145 million. The sub­ National Bank. stantial injection of francs resulting from In July money and credit conditions in these inflows into the Swiss money market Switzerland tightened, as heavy seasonal brought an end to the squeeze and an easing withdrawals of currency drained liquidity in the spot rate. The Swiss market remained from Swiss commercial banks and as the comfortably liquid during August and early midyear swaps between the Swiss National September, and the U.S. authorities pur­ Bank and the commercial banks ran off. chased from the National Bank sufficient Swiss banks bid strongly for francs to meet francs to meet the last $36 million due under month-end needs, and interest rates on 1- maturing forward sales contracts with the week money climbed to 8-10 per cent per market. In addition, the System purchased a annum. further $15 million of francs from the Swiss With no immediate prospect of liquidat­ National Bank and reduced its swap debt to ing Swiss-franc swap commitments through $130 million. market transactions, the U.S. authorities took action to wind up these commitments ITALIAN LIRA by other means. In July the U.S. Treasury issued to the BIS a 3-month certificate of In the latter part of 1967 Italian exports indebtedness denominated in Swiss francs moved strongly upward, reflecting the re­ equivalent to $54.7 million. The Treasury vival of business activity in Germany and used these francs to reverse its third-cur­ other major markets as well as Italy’s re­ rency swap of sterling for francs with the markable record of price stability in recent BIS. Subsequently, the Treasury issued to years. At the same time there was a tem­ the Swiss National Bank a 3-month certifi­ porary tapering-off of long-term capital out­ cate denominated in francs equivalent to flows coupled with some repatriation of $133.7 million; nearly all of these francs, funds induced by the sterling crisis. Italian together with balances, were employed by official reserves consequently continued to the System to repay fully the $135 million rise even after the usual summer build-up. commitment still outstanding under the swap The Federal Reserve absorbed these dollars line with the Swiss National Bank. The $600 by drawing on its swap line with the Bank million facility with the bank thus reverted of Italy, and by the end of November Sys­ to a fully available standby basis. Also dur­ tem swap commitments in lire had reached ing the month the System and the Treasury $500 million. were able to liquidate at maturity $29.5 The delayed seasonal weakness in the lira million of forward contracts with the market. finally developed just before the close of the At the end of July credit conditions in year and continued into early 1968, but with Switzerland tightened still further, trigger­ minimal effect on Italian official reserves, ing heavy repatriations of funds to Switzer­ and the Federal Reserve had scant oppor­ land, and the Swiss National Bank pur­ tunity to acquire lire through market trans­ chased a large amount of dollars in meeting actions. In late February and early March, market needs. The System subsequently ab­ however, the Federal Reserve acquired $75 sorbed nearly all those gains by reactivating million equivalent of Italian lire and $100 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 million equivalent of German marks from liquidate the full amount of its outstanding the proceeds of Canadian and U.S. draw­ swap obligations to the Bank of Italy by ings on the IMF; the marks were converted early July. The currency packages put to­ into lire, and the combined proceeds were gether by the IMF for France and the United used to reduce the swap debt to the Bank of Kingdom provided for $369 million of lire. Italy to $325 million in early March. Of this amount, the System purchased As a new wave of speculation on the $141.5 million equivalent directly from the London gold market spread to the exchange drawing central banks, and the bulk of the markets, inflows of funds to Italy quickly remainder was converted into dollars by the tapered off when the Bank of Italy permitted Bank of Italy, depleting its dollar holdings. a rapid rise in the spot rate. The spot lira Moreover, in the absence of a large seasonal moved sharply lower after the Washington increase in reserves, the swap drawing ef­ central bank meeting restored confidence in fected in anticipation of such reserve in­ the currency parity structure, but there was creases no longer seemed necessary. There­ no significant reflux of funds from Italy as fore, the System was able to purchase an that country’s external position remained additional $351.1 million equivalent of lire strong. With little change in the market pat­ from the Bank of Italy. These lire, combined tern through April and with the usual spring with some $7.6 million equivalent acquired and summer build-up of Italian official re­ from a correspondent and in the market, serves in prospect, the Italian authorities were used by the Federal Reserve to liqui­ asked the System near the end of April to date completely its remaining swap debt to absorb $175 million of its dollar holdings by the Bank of Italy. a swap drawing. This again raised the Fed­ In early 1965, the U.S. Treasury had eral Reserve’s swap debt in lire to $500 again assumed technical commitments in million. forward lire, related to the dollar/lire swaps As the spring months wore on, however, transacted by the Italian authorities with the the increase in Italian official reserves did Italian commercial banks. Earlier opera­ not develop as expected. A brief period of tions of this type had been conducted in labor and student unrest, together with po­ 1962-64. The Federal Reserve joined in litical uncertainties arising out of the resig­ these commitments in November 1965, nation of Premier Moro, may have induced under an authorization to participate to the some outflows of funds. More important, extent of $500 million. No opportunity sub­ however, were relatively easy credit and sequently appeared to terminate these Fed­ liquidity conditions, which encouraged large eral Reserve commitments through a reduc­ capital outflows, particularly to the Euro­ tion in the Italian banks’ forward positions. bond market. Such outflows of long-term Consequently, in line with System policy of funds from Italy continued into the summer, limiting exchange operations to relatively and largely offset the normal seasonal rise short-term needs, the Federal Reserve in of reserves during the tourist season. April transferred to the Treasury the total The shift toward balance in Italy’s ex­ of its technical forward commitments in lire. ternal accounts, along with the French and Such commitments, as they have fallen due, U.K. drawings on the IMF in June, provided have been rolled over by the Italian au­ the opportunity for the Federal Reserve to thorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 737 DUTCH GUILDER guilders swelled again in the wake of the March gold rush. The Netherlands Bank Late in 1967 there were heavy flows of funds took in about $100 million through March to the Netherlands, generated mainly by the 15 but swapped out a sizable amount of sterling crisis but also by a brief liquidity this intake—selling the dollars spot and re­ squeeze in the Amsterdam market at the purchasing them forward—to mop up excess year-end. As part of the concerted central domestic liquidity. To absorb the bulk of the bank effort in November 1967 to restrain Dutch reserve gains, the Federal Reserve speculation, the Netherlands Bank initiated Bank of New York, acting for the account forward sales of guilders totaling $37.5 of the U.S. Treasury, concluded a special million on behalf of the Federal Reserve and 45-day swap for $65 million with the Nether­ the U.S. Treasury. In the same month the lands Bank. In addition to such market Treasury also executed special temporary swaps, the Netherlands Bank offered guilders swaps with the Netherlands Bank, for $126 forward on an outright basis, to limit the million equivalent, to provide cover for that tendency for costly forward premiums to re­ bank’s spot dollar accumulations. Moreover, sult in sales of spot dollars to the central the Federal Reserve drew several times on its bank. The Federal Reserve and the Treasury swap line and by early January 1968 System underwrote this operation by each taking commitments had reached $185 million. At over $20,9 million equivalent of guilder their peak on January 4 total short-term forward commitments to the market—in commitments of U.S. authorities in guilders the 1-, 2-, and 3-month maturity ranges. amounted to $348.5 million. These combined operations by the Dutch Liquidity conditions in Amsterdam im­ and U.S. authorities helped to reassure the proved significantly with the new year, and market and restrained further heavy inflows Dutch banks responded by moving excess of funds. funds back into the Euro-dollar market. The The meeting of the Gold Pool central outflow, which gave the Netherlands Bank bankers in Washington on March 16 and 17 an opportunity to sell some dollars, did not marked a major turning point. (One of the last long enough for the Federal Reserve and agreements reached that weekend was a fur­ the Treasury to make more than moderate ther increase in the swap facility between the progress in reducing their guilder obliga­ Federal Reserve and the Netherlands Bank tions. Moreover, the Dutch balance of pay­ to $400 million.) The guilder market re­ ments, which was in modest surplus in 1967, sumed a more normal trading pattern, as showed no signs of shifting into deficit. To attractive yield incentives favoring invest­ avoid an undue prolongation of the short­ ments in Euro-dollars were restored. A siz­ term guilder commitments incurred by the able reflux abroad soon developed, bringing System and the Treasury, a variety of special about an easing of spot guilder rates at a transactions (recounted in the Bulletin time when the forward premium on guilders for March 1968, pages 280-82) were under­ was also narrowing as speculative influences taken with the result that only $65 million of abated. Moreover, commercial firms became Federal Reserve swap drawings remained buyers of foreign exchange to rebuild bal­ outstanding by early March. ances and to meet current requirements. Demand for both spot and forward With this reversal of pressures in the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 guilder markets, the Netherlands Bank sold receipts, which coincides with money market a substantial amount of spot dollars during stresses resulting from increased note cir­ the rest of March and into April—replenish­ culation at the time of summer vacations in ing those losses through purchases from the the Netherlands. Thus, sizable repatriations U.S. Treasury and the Federal Reserve. of foreign assets were avoided. The Treasury used the guilders so obtained With the guilder largely insulated from to liquidate its $65 million special swap money market pressures, the spot rate eased with the Netherlands Bank in advance of below par in July and declined further maturity, and by the end of April the System through early September. On September 6 had also purchased sufficient guilders to re­ the Netherlands Bank liquidated a maturing pay the last of its swap drawings with the $24.9 million swap drawing on the facility Netherlands Bank. The U.S. authorities were with the Federal Reserve, leaving $29.8 mil­ also able to liquidate the forward guilder lion outstanding from the June drawings. contracts falling due to the market in April and May. The last $10.7 million of these BELGIAN FRANC obligations was covered in early June, when Belgium also experienced inflows of funds the United States purchased from France during the sterling crisis last fall, and the part of the guilder proceeds of the French National Bank of Belgium took in sizable IMF drawing. amounts of dollars at the upper limit for the Moreover, additional conversions of the Belgian franc. To cover these accumulations, guilders drawn from the IMF by France and the Federal Reserve drew on the swap line, the United Kingdom reduced the dollar bal­ ances of the Netherlands Bank to such an with swap commitments totaling $130.8 mil­ extent that the bank in turn drew a total of lion by the end of November, while the U.S. $54.7 million under the swap line with the Treasury issued a $60.4 million medium­ Federal Reserve to replenish its holdings. term franc-denominated note to the Belgian This was the first time that the Netherlands authorities. In addition, as part of the con­ Bank had drawn on its swap line with the certed central bank effort to maintain orderly Federal Reserve since the inception of the markets after the sterling devaluation, the swap arrangement in 1962. In addition, the National Bank in December sold some $11.8 Netherlands Bank bolstered its dollar bal­ million of forward Belgian francs for the ances by selling $30 million of gold to the account of the Federal Reserve and the U.S. U.S. Treasury. Treasury. Thereafter, speculative buying With the underlying Dutch payments po­ pressure on the Belgian franc subsided sition roughly in balance, the spot guilder quickly, while a revival of business activity fluctuated in response to changing liquidity in Belgium, and the consequent growth of conditions in Amsterdam during May and import demand, contributed to a demand the early part of June. On July 1 the Nether­ for dollars and to an easing of the spot franc lands Bank announced that it had concluded from its ceiling. an arrangement with the Government to pur­ During this period the National Bank of chase directly up to 400 million guilders in Belgium occasionally sold dollars in the Dutch Treasury bills. This operation helped market, and to recoup these losses as well bridge the seasonal decline in government as to anticipate dollar needs of the Belgian Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 739 Government, the bank sold francs to the result that francs made available by the Federal Reserve. The System, in turn, used National Bank to the IMF were purchased the francs to reduce its swap commitments by the U.S. authorities in sufficient quantity to $80.8 million by late January. The franc to liquidate all remaining Federal Reserve firmed again in February, and it was only indebtedness under the Belgian franc swap through a series of nonmarket transactions line. (for descriptions see Federal Reserve Bul­ During the summer months the spot Bel­ letin for March 1968, pages 282 and 283) gian franc continued to edge downward as that by early March the Federal Reserve a result of the economic recovery and the swap commitment was lowered to $34.5 maintenance of relatively low levels of million and the System and the Treasury short-term interest rates in Belgium, com­ forward contracts were reduced to $5.0 mil­ pared with the attractive yields in the Euro­ lion equivalent. dollar market. In July, the spot franc dipped On March 7 the National Bank cut its dis­ below par ($0.02000) and the National count rate by 14 percentage point to 3% per Bank intervened to slow the decline. As part cent to promote a lower level of interest rates of this operation, the National Bank utilized in Belgium and to stimulate economic activ­ $20 million under its Federal Reserve swap ity. But in the following week a violent burst line, the first such utilization since 1963. of speculation in the gold and foreign ex­ change markets pushed the franc to the Na­ CANADIAN DOLLAR tional Bank’s upper intervention point. By March 15 the bank had taken in nearly $60 The Canadian dollar came under heavy spec­ million. The Federal Reserve absorbed most ulative attack during the winter months of of this inflow by additional drawings on the 1968. Although Canada’s trading position swap line; by March 19, its drawings out­ remained strong, market sentiment had been standing reached $80.1 million. badly shaken by the devaluation of sterling In the calmer atmosphere immediately and the subsequent gold rush. The market following the meetings in Washington, how­ was particularly disturbed by apprehensions ever, Belgian banks soon began to channel that the new U.S. balance of payments pro­ funds back into dollar investments. As the gram announced on January 1 would ad­ National Bank provided occasional support versely affect direct investment in Canada in the spot market and replenished its dollar and the balance of short-term capital flows holdings through purchases from the System, between the two countries, despite Canada’s gradual progress was made reducing the continued free access to the U.S. bond mar­ swap debt to $43.1 million by early June. ket under the new program. In February Moreover, the System and the Treasury were political uncertainties added to market able to purchase sufficient francs from the tensions as the Canadian Government en­ Belgian National Bank to liquidate the re­ countered temporary difficulties in getting mainder of their forward franc commitments legislative approval for its anti-inflationary with the market. fiscal program. Losses in official reserves in In June the French and British drawings January and February were heavy, and the from the IMF gave rise to a series of official Canadian authorities accordingly reinforced transactions in Belgian francs, with the net their reserve position by drawing $250 mil- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 lion under the $750 million swap facility central bank resolve to defend the existing with the Federal Reserve and $426 million international payments system. Announce­ from the IMF. At the same time the discount ments following the Washington meetings rate was raised to 7 per cent on January 21. that the Bank of Canada’s swap facility with In early March, as the gold rush resumed, the Federal Reserve had been increased to the Bank of Canada was again forced to $1,000 million provided further assurance intervene in the exchange market on a large of the capacity of the Canadian authorities scale. In an effort to curb speculative pres­ to maintain the existing parity. For the first sures, fiscal measures designed to limit do­ time since the November devaluation of mestic demand were reintroduced into (and sterling, more normal influences began to subsequently passed by) Parliament and emerge in the exchange market for Canadian were immediately backed up by a bolstering dollars. The market responded favorably to of Canada’s international credit lines. New a large calendar of Canadian borrowings international credits of $900 million, over in New York—suggesting sizable forthcom­ and above the $500 million still available ing demand for Canadian dollars. Moreover, under the Federal Reserve swap line, were a Province of Quebec loan in Europe also made available by the U.S. Export-Import suggested that Canadian borrowers could Bank, the German Federal Bank, the Bank tap new capital resources in Europe where of Italy, and the BIS. At the same time the monetary conditions had eased as a result of U.S. Government made clear its whole­ official policy actions designed to foster re­ hearted support for Canada’s program to newed business expansion on the Continent. defend the $0.9250 parity by granting Can­ With a sharp turnabout in market senti­ ada a complete exemption from the restraints ment toward the Canadian dollar, the Ca­ on capital flows announced in the President’s nadian authorities took in sizable amounts January 1 program. of U.S. dollars toward the end of March and The Canadian Minister of Finance assured thus offset some of the losses sustained the U.S. Government that this exemption early in the month. Buying pressure gathered would in no way impair the effectiveness of momentum in April, as demand for Cana­ the President’s program. In addition, the dian dollars was strengthened by the resump­ Finance Minister announced the intention tion of normal monthly conversions of export to invest Canada’s holdings of U.S. dollars earnings by Canadian paper and grain com­ —apart from working balances—in U.S. panies. Thus, the Canadian authorities were Government securities which do not con­ able to report substantial reserve increases stitute a liquid claim on the United States. in April and May. In May and June the Gov­ Effective March 15, the Bank of Canada ernment of Canada made new issues of raised its discount rate by 1/2 percentage bonds in the United States, Italy, and Ger­ point to 716 per cent. The previous day, many in a total amount of $262 million most Federal Reserve Banks had also an­ equivalent. As the exchange market situation nounced a 16-point rise in discount rates. continued to improve in late June, the Bank These strong measures to protect the of Canada repaid $125 million of its $250 Canadian dollar began to exert their full million obligations under the Federal Re­ effect as soon as the March 16-17 meetings serve swap line and on July 1 reduced its in Washington cleared away doubts about discount rate 16 point to 7 per cent. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 741 After a brief lull in July, there was re­ the German, Swiss, Dutch, and Belgian cen­ newed buying of Canadian dollars as banks tral banks and the Federal Reserve, in co­ began to undo forward positions against the operation with the BIS, brought some $1.4 Canadian dollar, which had been undertaken billion of resources into play toward the during the peak of the speculative attack end of 1967, limiting upward movements in in January. The Bank of Canada supplied Euro-dollar rates. In the early months of the needed liquidity to the market but per­ 1968 Euro-dollar rates eased sharply despite mitted the spot Canadian dollar to advance the announcement on January 1 of the more gradually to its effective ceiling $0.9324). stringent U.S. balance of payments program. The prospect of sizable provincial borrow­ Sizable reflows from France, Germany, ings abroad and rumors of a possible new and Switzerland—and the heavy pressure grain deal with the Soviet Union appeared on the Canadian dollar—resulted in sub­ as further bullish factors. Against this favor­ stantial shifts of funds into the Euro-dollar able background, the Bank of Canada an­ market. Moreover, the upsurge in Euro-bond nounced on July 26 that it was lowering flotations produced temporary accumula­ its discount rate by a further ’/a point to tions by the borrowers—in large part affili­ 61^ percent. ates of U.S. corporations—who placed them With this announcement the Canadian in short-dated deposits. At the same time authorities also revealed that the Bank of the market’s skeptical attitude toward the Canada had repaid the final $125 million pound led to wide discounts on forward outstanding on its swap line with the System, sterling that made short-term investments in thereby placing the entire $1,000 million sterling unattractive. Thus, despite record facility on a standby basis. At the same time, interest rate levels in the United Kingdom it was reported that the $100 million short­ and the ample liquidity in the Euro-dollar term facility with the BIS and the facilities market, funds did not move into sterling as­ of $150 million each with the Bank of Italy sets but were absorbed in good part by and the German Federal Bank had been branches of U.S. banks for placement with terminated without having been utilized. their head offices in the United States. The Canadian dollar remained at or near In early March the speculative upheaval its effective ceiling through August and early in the gold market inflamed market appre­ September, and effective September 3 the hensions over currency parities and the Bank of Canada reduced its discount rate general stability of the international financial to 6 per cent. At the end of August Canadian structure. In this atmosphere, Euro-dollar official reserves stood at $2,590 million, a rates jumped to 7 per cent. Once again, gain of $345 million since the end of March. however, the central banks of Germany, the Netherlands, and Switzerland, acting in con­ EURO DOLLAR MARKET cert with U.S. authorities, returned substan­ During the fall of 1967 concerted central tial amounts of funds to the Euro-dollar bank action to minimize the impact of mas­ market, simultaneously making forward ex­ sive repatriations of funds shielded the change available and thereby curbing the Euro-dollar market from the repercussions tendency for wider forward premiums in of the sterling crisis and the subsequent wave major continental currencies to pull further of speculation in gold. Joint operations by funds from the Euro-dollar market. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 The German Federal Bank, for example, kets. Moreover, in May large amounts of resold nearly $800 million to the market in funds were drained from London as growing swap operations through the end of March. apprehensions over the pound precluded In addition, the Netherlands Bank by March uncovered investments in sterling, and 15 had made available $41.8 million of for­ sharply widened the discount for forward ward guilders, partly in swap transactions pounds, which created an unusually large but also on an outright basis, and the Swiss interest incentive for shifting funds into National Bank made available $56 million dollars on a covered basis. Outflows from equivalent of forward francs. The Federal France starting after mid-May seem also to Reserve underwrote the forward commit­ have gone largely into dollars. On the de­ ments in guilders and Swiss francs and par­ mand side, branches of U.S. banks continued ticipated in the German operations by draw­ to absorb funds for placement with their ing $300 million on its swap line to absorb head offices and, without undue strain on the dollars from the Federal Bank, thereby market, in the quarter ended in June in­ providing cover for part of that bank’s creased their takings to more than $6 billion, forward purchases of dollars. compared with about $4 billion at the begin­ News of the decisions taken at the Wash­ ning of the year. ington meetings strongly bolstered market Euro-dollar rates moved upward in May confidence in currency parities. (At that as U.S. interest rates advanced and as inter­ time the Federal Reserve swap facility with national currency uncertainties temporarily the BIS, under which Euro-dollar place­ unsettled the market, before rates eased in ments can be made, was increased to $1 early June. With the approach of midyear, billion.) Prospects for stability were further however, and indications of a possibly improved late in the month by the President’s developing squeeze of exceptional stringency peace initiative and the agreement at Stock­ in Switzerland, rates began to rise once more. holm on a plan for Special Drawing Rights. Undue pressures were effectively countered, Under the influence of these developments, however, as the Swiss National Bank bought Euro-dollar rates drifted down from their $430 million on a short-term swap basis mid-March peaks until the swing toward from Swiss commercial banks and rechan­ higher interest rate levels in the United States neled the dollar proceeds to the Euro-dollar began in April to exert a strong pull on market, directly or through the BIS. The short-term funds in Europe. Federal Reserve backed up the operation by Substantial amounts of funds continued providing to the BIS $111 million for place­ to flow into the Euro-dollar market from the ment in short-term deposits in the Euro­ Continent during the spring, notably from dollar market. With midyear pressures out Germany where 3-month interbank loan of the way, and expectations of easier mon­ rates of about 316 to 3% per cent per etary conditions in the United States follow­ annum were indicative of the relatively low ing passage of the tax surcharge, Euro-dollar investment yields in major continental mar­ rates subsequently eased considerably. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statement to Congress I am glad to appear before this committee their Federal Reserve Banks, and collateral­ today to discuss the recently released Fed­ ized such borrowing as they did with Gov­ eral Reserve report proposing changes in ernment securities. This marginal role for lending facilities for member banks. The the discount window was formally recog­ studies and research on which the report nized in a change in 1955 in the Board’s is based were undertaken to be sure our Regulation A covering loans to member lending operations—popularly called our banks; under that revision, bank borrow­ discount mechanism—were appropriate to ings from the Federal Reserve were to be present-day banking institutions and en­ limited to assistance over the peaks of tem­ vironment. To be more effective in meeting porary, seasonal, or emergency needs for changing community credit needs, commer­ funds that exceeded the dimensions that the cial banks need central bank assistance as banks could reasonably be expected to meet well as supervision. We are pleased to dis­ out of their own resources. cuss our findings with you. In the last decade or so, however, credit The redesign suggested by the report demands on banks have grown and loan-towould represent the latest in a series of deposit ratios are much higher, rising from evolutionary changes in Federal Reserve 47 per cent to 60 per cent. Moreover, at lending policies and procedures. When first many banks portfolio management has pared established by the Federal Reserve Act in liquidity positions substantially, and borrow­ 1413, the discount mechanism was expected ings from sources other than the Federal Re­ to operate by member banks presenting cer­ serve have expanded. In addition, a small tain types of short-term customer notes but growing number of banks have also been (termed “eligible paper”) as collateral for led to withdraw from membership in the borrowing at the Reserve Banks. During Federal Reserve System, chiefly in order to most of the first 20 years of Federal Reserve avoid reserve requirements and thus enable operation, member banks borrowed a siz­ them to invest a greater portion of their able proportion of their total required re­ resources in earning assets. In view of these serves on the security of such customer developments, the proposed redesign of the notes. discount mechanism is aimed at relating After 1934, however, member banks ac­ Federal Reserve lending more clearly and cumulated large amounts of Government closely to the changing banking and commu­ securities and other liquid assets; accord­ nity needs. ingly, they did very little borrowing from Before I outline the new proposals that Note: Statement of George W. Mitchell, Member, have been made for our lending facilities, it Board of Governors of the Federal Reserve System, might be well for me to mention three long­ before the Joint Economic Committee, on the “Re­ port of the System Steering Committee on Reappraisal standing basic principles of Federal Reserve of the Federal Reserve Discount Mechanism—Its lending that were reaffirmed by our study. Rationale and Implications,” September 1 1, 1968. 743 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

744 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 First among these is that Federal Reserve This arrangement, more explicit and more credit is extended primarily to accommodate liberal than currently provided, is termed bank asset and liability adjustments over the “seasonal borrowing privilege.” limited time periods and to meet essentially Member banks experiencing drains of short-term fluctuations in member bank funds that are not of a seasonal or emer­ needs for funds. gency nature, but that are bigger or longer The second principle reaffirmed, however, in duration than can be accommodated is that Federal Reserve Banks always stand under the new “basic borrowing privilege,” ready to lend to any of their member banks could also arrange for additional credit caught in special regional or local adversities pending an expected and timely reversal of —such as droughts, drastic deposit drains, their fund outflows or an orderly adjustment or other emergencies—for as long as reason­ of their assets and liabilities. Such borrow­ ably needed for the bank to work out of ings would be subject to essentially the same these circumstances. kinds of administrative procedures now ap­ Thirdly, the report recognizes that the plied to similar situations. Federal Reserve serves as “lender of last A final innovation proposed by the report resort” to buttress the entire financial system is to make the discount rate—the interest in the event of widespread emergency. rate charged by Federal Reserve Banks on Within the limits of existing law, and lending their loans to member banks—more flexible primarily through member banks as inter­ than heretofore. It is recommended in the mediaries, the Federal Reserve is prepared report that the discount rate be changed to supply liquid funds to other types of fi­ considerably more frequently and by smaller nancial institutions when such assistance is amounts, keeping it reasonably closely in not available elsewhere and is necessary to line with the movements in other money avoid major economic disruption. market rates. Along with these continuing principles, The most commonly used of the new the report suggests several modifications of lending provisions for member banks in lending operations to better serve emerging sound condition would undoubtedly be the needs. Let me summarize the main new sug­ basic borrowing privilege. The size of each gestions briefly, and then outline each one bank’s basic borrowing privilege would be in somewhat greater detail. established as a proportion of some base To provide more clear-cut access to Fed­ drawn from the bank’s balance sheet; the eral Reserve lending facilities, the report current proposal suggests capital stock and proposes that each soundly operated mem­ surplus. Frequency of use of the basic bor­ ber bank be given a “basic borrowing priv­ rowing privilege would also be limited. This ilege,” enabling it to borrow up to a specified is necessary because Federal Reserve credit limit from its Reserve Bank upon request is not properly a long-term or permanent in as much as half of its weekly reserve addition to the loanable funds of individual periods. member banks. The aim is to make credit In addition, it is proposed that any mem­ available over a long enough period to cush­ ber bank foreseeing large seasonal bulges in ion the bulk of short-term fluctuations or its needs for funds would be able to arrange portfolio adjustments and in most cases for loans from its Reserve Bank to meet permit orderly adjustment to longer-term such needs in excess of a specified minimum. movements of funds. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 745 The proposed frequency limitation would it is also true in cases of smaller banks faced allow assured and virtually automatic access with sharp temporary drains of funds. Ar­ to credit so long as the bank is indebted in rangements are therefore recognized as nec­ no more than half the reserve periods in essary to permit member bank borrowings the specified interval. outside the basic borrowing privilege up to Before the plan is finally made effective, the limits of appropriate needs on as con­ choices will be made in the light of com­ venient and understandable terms as pos­ ments received as to the particular percent­ sible. These arrangements, referred to in ages that would apply to the amount and the report as “other adjustment credit,” frequency limitations. The considerations would be available pending an expected and will be that individual credit access should timely reversal of fund outflows or an or­ not be so small or so infrequently available derly portfolio adjustment. Such borrowings as to be insignificant to the member banks, would be subject to essentially the same nor should total access be so liberal as to kinds of administrative procedures now ap­ interfere with Federal Reserve open market plied to similar situations, with the precise operations aimed at carrying out national timing and nature of administrative actions credit policy objectives. determined as at present by the circum­ Borrowing within the basic borrowing stances surrounding individual cases. Close privilege limitations could, as noted, take contact among the Federal Reserve Board place virtually upon request, unless the Re­ staff and the Federal Reserve Banks’ dis­ serve Bank had notified the member bank count officials will be maintained in the in­ that its over-all condition was unsatisfactory terest of dealing uniformly with similar as determined by such factors as adequacy cases. of capital, liquidity, soundness, manage­ The third general category of credit that ment, or noncompliance with law or regula­ would be available to member banks at the tion and that such unsatisfactory condition proposed discount window is called the “sea­ was not being corrected to the Reserve sonal borrowing privilege.” A Reserve Bank Bank’s satisfaction. The only other circum­ would be prepared to establish such a sea­ scription on the actions of a qualified bor­ sonal borrowing privilege for any member rowing bank would be the avoidance of net bank experiencing demonstrable seasonal sales in the Federal funds market during the pressures persisting for a period of at least reserve periods in which it was borrowing four consecutive weeks and exceeding a from the Federal Reserve. This administra­ minimum relative size. It is expected that tive rule, already in force, is retained in the this borrowing privilege would be of value new proposal in the interest of precluding principally to smaller unit banks in agricul­ retailing operations in Federal Reserve credit tural or resort areas in which seasonal obtained through the discount window. swings have a substantial impact on the en­ Tt is recognized that the basic borrowing tire community and where access to the privilege would not be large enough to en­ national money markets or other adjustment compass every member bank’s needs for resources is not always readily available. funds in all instances that justify the use of The existence of seasonal pressures would discount credit. This is particularly true in be judged on the basis of past years’ pat­ cases of the larger banks which borrow in­ terns of loan and deposit fluctuations. The frequently but for rather large amounts, but establishment of a qualifying seasonal swing Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

746 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 in net availability of funds (defined as de­ limits of the law, special and flexible ar­ posits minus loans to customers in the bank’s rangements would continue to be made market area) would ordinarily be fixed by where necessary. Assisting a bank in an negotiation once a year. Once the existence emergency situation would generally require of a qualifying seasonal need was estab­ credit extension for periods longer than lished, the Reserve Banks would agree to would normally be allowed at the window, extend discount credit up to the qualifying but this would be expected and regarded as amount and for the length of time the need appropriate. was expected to persist, up to 90 days. The Federal Reserve, in its role as lender The 90-day maximum is imposed by statute; of last resort to other sectors of the economy, however, should the need extend over a may find it necessary to extend credit as­ longer period than this, the Reserve Banks sistance to institutions other than member would regard renewals of credit as in ac­ banks. This action would be taken only cordance with the initial seasonal credit when other sources of credit have been negotiation. Seasonal credit needs would exhausted and failure of the troubled institu­ normally be expected to last for several tions would have a significant impact on the months, but in exceptional cases could range economy’s financial structure. When lending up to as much as 9 months. to nonmembers, the Federal Reserve would Seasonal credit obtainable at a Reserve act in cooperation with the relevant super­ Bank would be limited to the amount of the visory authority to insure that steps are borrowing bank’s seasonal swing in excess taken to find a solution to their problems. of a specified percentage of its average de­ The Federal Reserve Act authorizes direct posits in the preceding year. This “deducti­ advances to nonmembers, but only if col­ ble” principle, requiring a bank to meet a lateralized by U.S. Government securities. part of its seasonal needs out of its own Since most nonmember institutions of the resources, is designed to encourage individ­ types apt to require emergency credit as­ ual bank maintenance of some minimum sistance do not have sizable holdings of level of liquidity for purposes of flexibility. this asset, credit would normally be extended It would also serve effectively to limit the through a conduit arrangement with a mem­ aggregate amount of credit extended under ber bank. Most types of nonbank financial the seasonal borrowing privilege to an institutions have borrowing relationships amount consistent with over-all monetary with their commercial banks as a matter of policy, while allowing the Federal Reserve course; and ideally, this indirect lending by to provide this assistance to all those mem­ the Federal Reserve could fit in with such ber banks with relatively large seasonal business practice. Such credit would be needs. provided at a higher rate than the basic dis­ The proposed redesign of the discount count rate. window would provide that the Federal Re­ The proposed discount window does not serve continue to supply liberal help to its include the provision of intermediate- or member banks in emergency situations. So long-term credit to meet the needs of banks long as the member bank is solvent and servicing credit-deficit areas or sectors— steps are being taken to find a solution to its that is, areas or sectors where the oppor­ problems, credit would be available on the tunities for profitable investment continu­ same basis as it currently is, and, within the ously outstrip the savings generated locally. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 747 While this is recognized as a problem of changes in the discount mechanism. For some significance, it was concluded that its your convenience, I have summarized these solution lies outside the proper scope of the details in a 2-page appendix table (see page discount window. The Steering Committee 748). If you have any questions about such concluded that an appropriate and effective matters, I will be glad to answer them either solution to this problem was most likely to now or in subsequent correspondence. be found in the improvement of secondary Let me emphasize that all these details are markets for bank assets and liabilities. De­ provisional at this stage, and subject to tailed studies of the feasibility of actions to review and modification in the light of our promote such improvement are expected to study of the comments and reactions re­ begin in the near future. ceived. The proposal at this stage represents I should emphasize that Federal Reserve a report of a Federal Reserve committee. open market operations are still envisioned The Board of Governors has not yet taken as the main tool of monetary policy. The any substantive action on the proposals proposed changes in discount operations, contained in the report nor published any however, would alter to some degree the change in its Regulation A which governs current relationship between these two meth­ borrowing. We have already received a ods of reserve injection, with the discount good many comments on the report from a mechanism assuming a somewhat increased variety of sources, including both bankers role. This would come about as a result of and banking organizations and others. We’ve the accommodation of more of the day-to­ had assistance from the reactions and sug­ day fluctuations of reserve needs at the win­ gestions of numerous academic scholars; dow, the improved distribution of reserves several leading economists have contributed brought about by injection of some reserves analytical papers on one question or another directly at the point of need, and more related to the discounting area, and the flexible and effective use of the discount rate Board has scheduled two different seminars as an influence on bank borrowing. The first with a number of professors of economics and second of these benefits would entail a at which ideas on this subject could be ex­ generally higher level of borrowing being changed. done by a typically rotating group of mem­ I can assure you that the views expressed ber banks. But this is not conceived to mean in these hearings also will be taken into ac­ a corresponding increase in total reserves or count by the Board. a loss of control in this area, since the Fed­ As we now see it, the shape of the pro­ eral Reserve would retain the ability to bring posal under consideration can be encom­ about and maintain the desired level of passed within the framework of existing over-all credit availability, taking into ac­ legislation. It may be, however, that certain count the relatively small increase expected aspects of the studies and of comments re­ in credit outstanding at the window, through ceived might make it desirable for the Board purchases and sales of securities in the open to request some amendments in the language market. of certain governing statutes in order to per­ To simplify my oral remarks this morn­ mit the revised discount mechanism to be ing, I have avoided citing specific numbers, as effective as possible. As you know, the technical conditions, or underlying statistical Federal Reserve has already proposed a evidence associated with the proposed bill (S. 966)—popularly termed the “eligible Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 paper” bill—which would make certain All of us involved in this reappraisal re­ changes in the provisions of the Federal cognize that, even after any of the suggested Reserve Act relating specifically to lending changes were introduced, a period of tran­ to member banks. It would seem likely that sition would undoubtedly be required before most, if not all, of the changes suggested by the full potential of the discount mechanism our studies could be encompassed by the could be realized either by the Federal language in that bill. Of course, neither the Reserve or the member banks. However, eventual changes that might be made in the I believe that there is a good possibility mechanism nor any resultant need for legis­ that this redesign can bring this mechanism lation can be finally settled at this stage, in closer touch with the prevailing economic but at a somewhat later date we may need climate and lead to a more effectively func­ to address a communication to the Congress tioning banking system that is better equip­ regarding the pending or possibly additional ped to serve evolving needs of the com­ amendments to the statute. munity. APPENDIX TABLE SUMMARY OF PROPOSAL FOR REDESIGN OF DISCOUNT MECHANISM Emergency Emergency Item Basic borrowing Other adjustment Seasonal borrowing credit to credit to privilege credit privilege member banks others (1) (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 ad­ term and, to the unusual or exigent member banks in cisely stated limits ministrative proce­ extent possible, pre­ circumstances. emergency circumstan­ on amounts and fre­ dures, to help a arranged basis to ces in fulfilling role as quency and on speci­ member bank meet meet demonstrable lender of last resort to fied conditions. temporary needs that seasonal pressures cx- the economy. prove either larger ceeding minimum or longer in dura­ duration and relative tion than could be amount. covered by its basic borrowing privilege. Rate Discount rate. Discount rate. Discount rate. Discount rate. Significant penalty above discount rate. Quantity ___(20-40)% of first None specified. Seasonal needs in None specified. None specified. limitations $1 million capital excess of ___(5-10) stock & surplus plus % of average deposits ___ (10-20)% of next subject to reserve $9 million plus requirements in pre­ ___ (10)% of remain­ ceding calendar year. der. 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 nine con­ secutive months. Administrative None other than gen­ Appraisal and, where Prearrangement in­ Continuous and thor­ Continuous and thor­ procedures eral discouragement necessary, action volves discussion be­ ough-going surveil­ ough-going surveil­ of net selling of Fed­ broadly similar to tween discount officer lance. Require that lance (may have to be eral funds by bor­ procedures developed and bank manage­ bank develop and thru conduit).. Require rowing banks. under existing dis­ ment concerning pursue workable pro­ that institution de­ count arrangements. amount, duration, gram for alleviating velop and pursue and seasonality of difficulties. workable program for need. Administrative alleviating difficulties. review maintained during borrowing to prevent abuse or mis­ use. Other restrictions Must not have been None specified. None specified. None specified. Required to use all found to be in un­ other practicable satisfactory condi­ sources of credit first. tion. Method of provision Direct. Direct. Direct. Direct. (1) Through central agency; (2) direct; (3) conduit through member bank. 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 meetings held in 1968 through April 30 were published in the Bulletins for April, pages 372-81; May, pages 431-36; June, pages 482-96; July, pages 628-37; and August, pages 671—80. The record for the meeting held on May 28, 1968, follows: 749 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

750 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 MEETING HELD ON MAY 28, 1968 1. Authority to effect transactions in System Account. Reports at this meeting indicated that over-all economic activity was continuing to advance rapidly and that inflationary pres­ sures were persisting. It appeared likely that growth in real GNP in the second quarter would again be large. Beyond midyear, economic prospects depended in large part on the outcome of pending fiscal legislation, which provided for a 10 per cent surtax on individual and corporate incomes and for a $6 billion reduction from the Budget estimate in Federal expenditures for the fiscal year 1969. Such legislation, if enacted, was expected to contribute to a marked slowing of the pace of expansion in aggregate output and to a gradual lessening of inflationary pressures. Estimates for the second quarter included a further sizable rise in consumer spending, although not so large as the extra­ ordinary advance of the first quarter. Defense expenditures were expected to continue to increase at a substantial rate. A sharp rise in housing starts in April, although it reflected temporary influences in large part, now suggested a moderate increase in outlays for residential construction in the second quarter. It appeared that business outlays for fixed capital would change relatively little; but inventory accumulation, which had been at a very low rate in the first quarter, was expected to increase considerably. In April nonfarm employment rose moderately further, and the unemployment rate again edged down, to 3.5 per cent from 3.6 per cent in March. The industrial production index was un­ changed from a March level that had been revised upward. Retail sales were advancing in early May, following a decline in April that was attributable largely to widespread civil disorders. Gold and foreign exchange markets had been unsettled in recent weeks; important contributing influences included shifts Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 751 in prospects for fiscal action in the United States and political uncertainties in France. The price of gold in the private London market had risen sharply after mid-May from around $39.50 per ounce to a new high of $42.60 on May 21, but subsequently declined somewhat. The Treasury gold stock recently had been reduced further, as a number of small central banks had pur­ chased gold from the United States. Sterling was under renewed pressure in foreign exchange markets, and quotations for the French franc were nominal in most markets as a result of the general strike and the closing of French banks. With respect to the U.S. balance of payments, the deficit on the official settlements basis was reduced in April and May by an accelerated rise in liabilities of domestic banks to their branches abroad. Movements out of sterling and French francs had contributed significantly to the availability of funds in the Euro-dollar market. U.S. exports of goods expanded sharply in April from the substantially reduced March level while imports increased slightly. For March and April together, however, the merchandise trade surplus was quite small. In early May the Treasury marketed two new 6 per cent notes having maturities of 15 months and of 7 years for payment on May 15. The shorter-term note was offered for cash and at­ tracted subscriptions mainly from commercial banks, which were allowed to make payment by credit to Treasury tax and loan accounts. The 7-year note was offered in exchange for securities maturing in mid-May, of which $3.9 billion were held by the public. After allowing for attrition of $1.3 billion in the exchange offering, the Treasury raised about $2.1 billion of new cash in these financings. Interest rates had risen substantially on balance in all maturity areas since the preceding meeting of the Committee. Yield in­ creases were especially pronounced after the mid-May announce­ ment that there would be a further delay in congressional con­ sideration of the pending fiscal legislation. Other influences Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

752 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 included the tightening of monetary policy associated with the mid-April increase in the discount rate and the continuing large volume of new offerings in the corporate and municipal bond markets. During the week immediately preceding this meeting, some short-term market rates, particularly on Treasury bills, had declined from their peaks as renewed optimism concerning pros­ pects for enactment of fiscal legislation emerged. The market rate on 3-month Treasury bills, at 5.67 per cent on the day before this meeting, was down 25 basis points from its May 21 high but was still 19 basis points above its level of 4 weeks earlier. During April interest rates on residential mortgages had risen substantially and yields on both conventional new-home mort­ gages and on FHA-insured mortgages trading in the secondary market were at postwar highs. Early in May, as permitted by new legislation, maximum contract interest rates on Federally underwritten home mortgages were increased to 6% per cent. Net inflows of funds to nonbank depositary institutions had weakened considerably further in April from the reduced inflow of the first quarter. System open market operations since the preceding meeting of the Committee had been directed at maintaining firm condi­ tions in the money market while countering persistent tendencies toward excessive tightness. In view of the advanced level of market rates, System repurchase agreements were made at an interest rate of 5% per cent, one-quarter of a percentage point above the discount rate. The effective rate on Federal funds moved up further to a range around 61/8 to 6% per cent, com­ pared with a range around 6 per cent in the latter part of April. Bank rates on new loans to Government securities dealers also advanced sharply. Member bank borrowings averaged $720 million and net borrowed reserves $380 million in the 4 weeks ending May 22, compared with averages of $690 million and $340 million, respectively, in April. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 753 Commercial bank credit, as measured by the bank credit proxy—daily-average member bank deposits—was estimated to have increased only a little in May following a small decline in April. Business loans, after a sharp rise in early April, had changed relatively little through early May while banks had continued to reduce their holdings of U.S. Government securi­ ties. The further advance in market interest rates acted to limit growth in commercial bank time and savings deposits, and in May, as in April, such deposits increased very little. Rates on large-denomination CD’s generally moved up to the new Regu­ lation Q ceilings, but the volume of outstanding CD’s was little changed over the month. Rates on Euro-dollar deposits rose sharply as U.S. banks built up their Euro-dollar liabilities. The money supply continued to grow rapidly in May; private de­ mand deposits expanded substantially as U.S. Government de­ posits declined. The bank credit proxy was now projected to decline in June at an annual rate in the range of 1 to 4 per cent if prevailing money market conditions were maintained. Business demand for bank loans was expected to be strong in June, partly to finance tax payments. The money supply and private demand deposits were projected to increase at about the rapid April-May rate, and U.S. Government deposits were projected to decline sharply, assuming no large cash financing. Total time and savings de­ posits were anticipated to show virtually no growth and possibly to decline, as relatively high market interest rates were expected to continue to curtail growth in consumer-type time and savings deposits and to result in a sizable decline in outstanding CD’s for which scheduled maturities were large in June. The Committee agreed that a restrictive monetary policy was appropriate in view of the strength of domestic demands and persisting inflationary pressures, as well as of the deterioration in the U.S. foreign trade balance that was contributing to con­ tinuation of an unsatisfactory over-all payments position. At the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 same time, however, there was general agreement that a number of considerations militated against any additional tightening at present. An important consideration was the possibility that in the near future Congress would enact the pending fiscal-restraint legislation. Furthermore, a considerable degree of monetary re­ straint had already been achieved; the banking system was being subjected to increasing liquidity pressures; over-all expansion of bank credit appeared to have halted in April and May; and market rates of interest had advanced sharply to levels that could give rise to a substantial amount of disintermediation. The Committee concluded that open market operations should be directed at maintaining about the prevailing firm con­ ditions in the money market, but that operations should be modified if bank credit appeared to be deviating significantly from current projections or if unusual pressures should develop in financial markets. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that the very rapid increase in over-all economic activity is being accompanied by persisting inflationary pressures. There has been little or no growth on average in bank credit and time and savings deposits over the past 2 months, although the money supply has expanded considerably as U.S. Government deposits have declined. In recent weeks both short- and long-term interest rates have risen sharply on balance from their earlier advanced levels, partly in reaction to shifting expectations with regard to the likelihood of fiscal restraint. There has been some revival of speculative activity in the private gold market and in foreign exchange markets. The U.S. foreign trade balance and over-all payments position continue to be a matter of serious concern. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to resistance of infla­ tionary pressures and attainment of reasonable equilibrium in the country’s balance of payments, while taking account of the potential for severe pressures in financial markets if fiscal restraint is not forthcoming. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining firm conditions in the money market; provided, however, that operations Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 755 shall be modified if bank credit appears to be deviating significantly from current projections or if unusual pressures should develop in financial markets. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, and Sherrill. Votes against this action: None. 2. Authority to purchase and sell foreign currencies. The Committee amended paragraph 1B(3) of the authorization for System foreign currency operations to increase, from $250 million to $300 million, the limit on authorized System Account holdings of sterling purchased on a covered or guaranteed basis. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, and Sherrill. Votes against this action: None. At its previous meeting the Committee had increased the limit in question from $200 million to $250 million. That action had been taken on grounds that it would be helpful in connec­ tion with discussions of specific arrangements, including a draw­ ing by Britain on its $1.4 billion standby facility with the Inter­ national Monetary Fund, for repayment by the Bank of England of outstanding drawings under its swap line with the Federal Reserve; and it had been understood that initial use of the en­ larged authority would be subject to the approval of Chairman Martin in light of developments in those discussions. Today’s action was taken on similar grounds and subject to the same understanding. The Committee also amended paragraph 4 of the foreign currency directive, by adding the words “and to facilitate opera- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN a SEPTEMBER 1968 tions of the Stabilization Fund” to clause (iv). With this amend­ ment, paragraph 4 of the directive read as follows: Unless otherwise expressly authorized by the Committee, transactions in forward exchange, either outright or in conjunction with spot trans­ actions, may be undertaken only (i) to prevent forward premiums or discounts from giving rise to disequilibrating movements of short-term funds; (ii) to minimize speculative disturbances; (iii) to supplement existing market supplies of forward cover, directly or indirectly, as a means of encouraging the retention or accumulation of dollar holdings by private foreign holders; (iv) to allow greater flexibility in covering System or Treasury commitments, including commitments under swap arrange­ ments, and to facilitate operations of the Stabilization Fund; (v) to facili­ tate the use of one currency for the settlement of System or Treasury commitments denominated in other currencies; and (vi) to provide cover for System holdings of foreign currencies. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Ellis, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, and Sherrill. Votes against this action: None. On November 14, 1967, at a time when an increase in System Account and Stabilization Fund holdings of sterling was under consideration, the Committee had amended paragraph 1C( 1) of the authorization for System foreign currency operations to en­ able the System Account to “warehouse” part of the Stabiliza­ tion Fund’s holdings of sterling if the Fund’s resources should prove inadequate to meet all demands upon them from time to time in the future. Since such “warehousing” operations—none of which had been undertaken to date—would involve forward transactions, the Committee concluded that it was desirable to make a conforming change in the list of purposes, given in paragraph 4 of the foreign currency directive, for which forward transactions were authorized. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material HOUSING AND URBAN DEVELOPMENT ACT poses, in an amount not to exceed, as to each OF 1968 such issuer, 10 per cent of the bank’s capital and By Act approved August 1, 1968 (Public Law surplus, and (b) to purchase for its own account 90-448) Congress amended various laws relating to stock issued by corporations created pursuant to housing and urban development and enacted sev­ Title IX of the Act for the purpose of providing eral new laws designed to assist in the provision of housing for low or moderate income families and housing for low and moderate income families. to invest in partnerships or joint ventures formed Numerous provisions of the Act, collectively en­ by such corporations pursuant to that Title; and titled “Housing and Urban Development Act of (4) expand the powers of national banks by 1968”, relate directly to the activities of the Fed­ adding a paragraph Ninth to section 5136 of the eral Reserve Banks and their member banks. Revised Statutes to authorize such banks to issue In summary, such provisions: securities guaranteed by the Government National (I) make the Reserve Banks depositories for Mortgage Association backed by a pool of mort­ the Government National Mortgage Association, a gages insured under the National Housing Act or new Federal instrumentality created by an amend­ Title V of the Housing Act of 1949 or insured or ment to section 302(a)(2) of the National Hous­ guaranteed under the Servicemen’s Readjustment ing Act (12 U.S.C. 1717); Act of 1944 or chapter 37 of Title 38 of the (2) expand the powers of national banks in the United States Code. (In connection with the latter, area of real estate loans by amending section 24 of section 21 of the Banking Act of 1933 was the Federal Reserve Act (a) to authorize such amended to remove a criminal prohibition against banks, without limitation, to make loans or pur­ banks issuing such securities.) chase obligations guaranteed by the Secretary of The text of the amendments relating directly to Housing and Urban Development under the por­ the activities of the Reserve and member banks is tion of the Act described as the “New Communities as follows: Act of 1968” (82 Stat. 513), (b) to authorize * 4: * such banks to purchase a participation (as distin­ guished from the entire interest) in a loan secured Sec. 416. * * * by a first lien on improved real estate or in a loan (b) The first paragraph of section 24 of the secured by a first lien on forest tracts, (c) to ex­ Federal Reserve Act is amended by striking out all tend from 24 to 36 months the permissible matu­ that follows “national banking association” in the rity of loans by such banks to finance commercial fourth sentence and adding “may make loans or building construction, and (d) to authorize such purchase obligations for land development which banks to accept a second lien on real estate as se­ are secured by mortgages insured under title X of curity for a loan if the bank relics primarily on the the National Housing Act or guaranteed under title creditworthiness of the borrower or other security IV of the Housing and Urban Development Act of as collateral for repayment of the Ioan; 1968.”. (3) expand the powers of national banks under paragraph Seventh of section 5136 of the Revised Sec. 802. * * * Statutes (and to that extent remove Federal limita­ (dd) Section 309(g) of such Act is amended to tions on the power of State-chartered member read as follows: banks) to authorize such a bank (a) to underwrite and deal in (i) obligations, participations, or in­ “(g) The Federal Reserve banks are authorized struments of or issued by the Government National and directed to act as depositaries, custodians, and Mortgage Association, without limitation on fiscal agents for each of the bodies corporate named amount, and (ii) so-called “revenue obligations” in section 302(a)(2), for its own account or as of investment grade that are issued by a State or fiduciary, and such banks shall be reimbursed for a political subdivision thereof, or an agency of such services in such manner as may be agreed either, for housing, university, or dormitory pur­ upon; and each of such bodies corporate may itself 757 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 act in such capacities, for its own account or as ever it appears in the third paragraph, and insert­ fiduciary, and for the account of others.” ing in lieu thereof “thirty-six months”; (2) by striking out “when the entire amount * * * of such obligation is sold to the association”, Sec. 804. * * * wherever it appears in the first and second para­ (c) Section 5136 of the Revised Statutes (12 graphs, and inserting in lieu thereof “in whole or U.S.C. 24) is amended by adding at the end thereof in part and at any time or times prior to the the following: maturity of such obligation”; and “Ninth. To issue and sell securities which are (3) by striking out the last paragraph and insert­ guaranteed pursuant to section 306(g) of the Na­ ing in lieu thereof the following: tional Housing Act.” “Loans made to any borrower (i) where the as­ (d) The first proviso of section 21(a) (1) of the sociation looks for repayment by relying primarily Banking Act of 1933 (12 U.S.C. 378(a)(1)) is on the borrower’s general credit standing and fore­ amended by inserting “, or issuing securities,” im­ cast of income, with or without other security, or mediately following “investment securities”. (ii) where the association relies on other security as collateral for the loans (including but not limited # * * to a guaranty of a third party), and where, in Sec. 807. * * * either case described in clause (i) or (ii) above, (j) Section 5136 of the Revised Statutes is the association wishes to take a mortgage, deed of amended by inserting “or the Government National trust, or other instrument upon real estate Mortgage Association” immediately following (whether or not constituting a first lien) as a pre­ “Federal National Mortgage Association”. caution against contingencies, such loans shall not be considered as real estate loans within the mean­ ❖ * * ing of this section but shall be classed as ordinary Sec. 911, Paragraph “Seventh” of section 5136 non-real-estate loans.” of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: “Not­ CREDIT IN STOCK MARKET TRANSACTIONS withstanding any other provision in this paragraph, the association may purchase for its own account The Board of Governors, effective August 8, shares of stock issued by a corporation authorized 1968, amended Regulation G, “Credit by Persons to be created pursuant to title IX of the Housing Other Than Banks, Brokers, or Dealers for the and Urban Development Act of 1968, and may Purpose of Purchasing or Carrying Registered make investments in a partnership, limited partner­ Equity Securities”, to relax the effect of certain ship, or joint venture formed pursuant to section provisions and to clarify others. The major amend­ 907(a) or 907(c) of that Act.” ments were designed (1) to modify the prohibition against lenders subject to the Regulation extending * # * to the same borrower at the same time both Sec. 1705. *.......... general credit and credit for purchasing or carry­ (h) The last sentence of paragraph “Seventh” ing registered securities so as to permit such a of section 5136 of the Revised Statutes (12 U.S.C. lender to extend, along with credit for purchasing 24) (appearing immediately before the sentence or carrying registered securities, (a) $5,000 in added by section 911 of this Act) is amended by general credit, (b) credit to build or buy a home, inserting after “the Asian Development Bank” the if secured by a first lien on such home, and (c) following: “, or obligations issued by any State credit secured by a share account or certain simi­ or political subdivision or any agency of a State lar claims (§ 207.1(A)), and (2) to permit credit or political subdivision for housing, university, or unions whose membership is limited to employes dormitory purposes,”. of a corporation to make, on the same basis as lenders wholly controlled by the corporation, $ * * loans for the purchase of stock in the corporation Sec.1718. Section 24 of the Federal Reserve Act, under an employe stock purchase plan without re­ as amended (12 U.S.C. 371), is amended— gard to initial margin requirements (§ 207.4 (a)). (1) by striking out “twenty-four months”, wher­ The text of the amendments is as follows: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 759 AMENDMENTS TO REGULATION G ment in his records for at least six years after such credit is extinguished. In determining 1. Section 207.1(a), (b), (e), (b), and (i) is whether credit is “purpose credit”, such person amended to read as follows: may rely on the statement executed by the cus­ (a) Registration.—Every person who, in the tomer if accepted in good faith. To accept the ordinary course of his business, during any calen­ customer’s statement in good faith, such person dar quarter ended after October 20, 1967, extends must (1) be alert to the circumstances surround­ or arranges for the extension of a total of fifty ing the credit and (2) if he has any further in­ thousand dollars ($50,000) or more or has out­ formation which would cause a prudent man not standing at any time during the calendar quarter, to accept the statement without inquiry, have in­ a total of one hundred thousand dollars vestigated and be satisfied that the customer’s ($100,000) or more, in credit, secured directly or statement is truthful. Circumstances which could indirectly, in whole or in part, by collateral that indicate that such person has not exercised reason­ includes any registered equity securities, unless able diligence in so acquainting himself and so such person is subject to Part 220 (Regulation T) investigating would include, but are not limited or Part 221 (Regulation U) of this Chapter, is to, facts such as that (1) the proceeds of the subject to the registration requirements of this credit were paid to a broker or to a bank in con­ paragraph and shall, within 30 days following the nection with contemporaneous delivery of regis­ end of the calendar quarter during which the per­ tered equity securities, whether or not payment son becomes subject to such registration require­ was made against delivery, (2) there were fre­ ments, register with the Board of Governors of quent substitutions of registered equity securities the Federal Reserve System by filing a statement serving as collateral for the credit, or (3) the in conformity with the requirements of Federal amount of the credit was disproportionate, or the Reserve Form G-l with the Federal Reserve Bank terms inappropriate, to the stated purpose. of the district in which the principal office of such person is located: Provided, That no such state­ * * « ment need be filed with respect to credit ex­ (h ) Purpose and nonpurpose credit extended tended in the calendar quarter that ended Decem­ to the same person.—No lender shall after Febru­ ber 31, 1967, until April 10, 1968. ary 1, 1968, extend or arrange for the extension (b) Termination of registration.—Any person of any purpose credit, or maintain or arrange for so registered who has not, during the preceding the maintenance of any purpose credit extended six calendar months, extended or maintained or after February 1, 1968, if the credit is secured arranged for the extension or maintenance of any directly or indirectly, in whole or in part, by col­ credit secured directly or indirectly, in whole or lateral that includes any registered equity security in part, by collateral that includes any registered which also secures, directly or indirectly, in whole equity securities may apply for termination of or in part, any other credit in excess of $5,000 such registration by filing Federal Reserve Form extended to the same customer after February 1, G-2 with the Federal Reserve Bank of the district 1968; and no lender shall have outstanding at the in which the principal office of such person is same time to the same customer both such pur­ located. pose credit and any such other credit; Provided, That the prohibitions of this paragraph shall not (e) Statements as to purpose of credit.—In apply to (i) credit extended for the purpose of connection with any extension of credit secured purchasing, constructing, maintaining, or improv­ directly or indirectly, in whole or in part, by ing a dwelling which is occupied or to be occupied collateral that includes any registered equity se­ by the customer as his principal residence, and is curity, every person who is subject to the regis­ secured by a first lien on such dwelling; or (ii) to tration requirement of paragraph (a) of this credit secured by a share account or other claim section shall, prior to such extension, obtain a acquired by the customer from the lender inde­ statement in conformity with the requirements of pendently of the credit and payable (or entitling Federal Reserve Form G-3 executed by the cus­ the holder to a loan thereon) in a dollar amount tomer and executed and accepted in good faith by determined without regard to the market value of such person. Such person shall retain such state­ the assets supporting the claim. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

760 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 tent necessary to render lawful any direct or in­ (i ) Purpose credit secured by both registered direct extension or maintenance of credit on such equity securities and by other collateral.—In the security. case of any purpose credit extended or arranged (2) Credit for the purpose of purchasing or after February I, 1968, secured, directly or in­ carrying (i) any security convertible with or with­ directly, in whole or in part, by any registered out consideration into a registered equity security equity security, no other collateral shall have any or carrying any warrant or right to subscribe to loan value in respect to such credit for the pur­ or purchase a registered equity security or any pose of this Part: Provided, however, That a share such warrant or right, or (ii) any security issued account or other claim acquired by the customer by an investment company registered pursuant to from the lender independently of the credit and section 8 of the Investment Company Act of 1940 payable (or entitling the holder to a loan thereon) (15 U.S.C. 80a-8), whose assets customarily in­ in a dollar amount determined without regard to clude registered equity securities, is for the pur­ the market value of the assets supporting the pose of purchasing or carrying registered equity claim shall have a maximum loan value as de­ securities, and such security, or such warrant or termined by the lender in good faith. right, shall for purposes of this Part be treated $ tl: * as if it were a registered equity security. 2. Section 207.2(b), (c), and (d) is amended $ * * to read as follows: 3. Section 207.4(a) and (b) is amended to read SECTION 207.2—DEFINITIONS as follows: (b) The term “in the ordinary course of his SECTION 207.4—MISCELLANEOUS business’’ means occurring or reasonably expected PROVISIONS to occur from time to time in the course of any (a) Stock option and employee stock purchase activity of a person for profit or the management plans.—In respect to any credit extended and and preservation of property or in addition, in maintained by a corporation, by a lender wholly the case of a person other than an individual, controlled by such corporation, or by a lender carrying out or in furtherance of any business which is a membership thrift organization whose purpose. membership is limited to employees and former (c) The “purpose” of a credit is determined by employees of such corporation, its subsidiaries, substance rather than form. or affiliates (such corporations and such lenders (1) Credit which is for the purpose, whether are both sometimes referred to as “plan-lenders”), immediate, incidental, or ultimate, of purchasing to an officer or employee of the corporation, sub­ or carrying a registered equity security is “pur­ sidiary or affiliate thereof to finance the exercise pose credit”, despite any temporary application of of rights granted such officer or employee under a funds otherwise. stock option plan or employee stock purchase (2) Credit to enable the customer to reduce or plan adopted by the corporation and approved by retire indebtedness which was originally incurred a majority of its stockholders to purchase registered to purchase a registered equity security is for the equity securities of such corporation, subsidiary purpose of “carrying” such a security. or affiliate, (d) Registered equity security.— * ❖ 4< (1) The term “registered equity security” means any equity security 4 which (i) is registered (b) List of securities.—In determining whether on a national securities exchange; or (ii) has un­ a security is a registered equity security or a se­ listed trading privileges on a national securities curity convertible into such security, or a security exchange, or (iii) is exempted by the Securities of the kind described in section 207.2(r/) (2), a and Exchange Commission from the operation of lender may rely upon the latest list of equity se­ section 7(c)(2) of the Securities Exchange Act curities registered on a national securities ex­ of 1934 (15 U.S.C. 78g(c)(2)) only to the ex- change and securities of the kind described in section 207.2(d) (2) issued by the Board of Gover­ 4 As defined in 15 U.S.C. 78c(a)(ll). nors of the Federal Reserve System. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 779 which can well support additional participants, the company, reinforces these conclusions. Further, Board shares the Department’s concern that entry although there are three smaller independent banks by a large banking organization through a major in the area, any of which, assuming its interests in acquisition may foreclose entry by such organiza­ such a proposal, could provide an alternative ve­ tion through preferable alternative means, and hicle for entry by Applicant, a comparison of the raise barriers to entry by others? In addition, if relative competitive aggressiveness of those banks the bank proposed to be acquired is one which with that of National Valley makes questionable could be the lead bank or a significant participant any conclusion that acquisition of the latter, de­ in a new holding company, its affiliation with one spite its greater size, is the less desirable alterna­ of the largest existing organizations may have even tive. broader adverse implications for potential competi­ Finally, National Valley’s apparent lack of ag­ tion. But the Board does not view the market or gressiveness and disinterest in expansion (as illus­ the bank involved in the present case as providing trated, for example, by the fact that it is the only a basis for application of these considerations. single office bank in Augusta County) make it Virginia law does not permit any of Applicant’s highly unlikely that it would be a moving force subsidiaries to branch de novo into an area in in the formation of a new holding company, and which it would compete with National Valley or its management succession difficulties, noted here­ permit the latter to expand by de novo branching inafter, preclude any conclusion that the bank into an area served by a subsidiary of Applicant. would be a significant source of strength for pros­ Any theory of anticompetitive impact predicated pective affiliate banks. Rather, it is the Board’s upon the elimination of potential competition must view that National Valley is itself in need of therefore contemplate either the alternative entry stronger management direction, such as affiliation of Applicant into Augusta County—through or­ with Applicant could provide, and that the provi­ ganization and acquisition of a new bank or sion of that direction would make it a more signif­ through the acquisition of a smaller existing bank— icant competitive alternative to the other banks op­ or a significant contribution which National Valley erating within its market area. could make to another holding company capable On the basis of the record before it, the Board of offering competition to Applicant’s subsidiaries. concludes that consummation of Applicant’s pro­ With respect to the possibility of the implemen­ posal would not result in a monopoly, nor be in tation of alternative means of entry by Applicant, furtherance of any combination, conspiracy, or at­ assessment of the likelihood and desirability of new tempt to monopolize the business of banking in entry into a banking market must take into account any relevant area, nor would such consummation the opportunity which the market in question pro­ substantially lessen competition, tend to create a vides to the potential entrant. Considering the 125,­ monopoly, or restrain trade in any section of the 000 population of the entire Augusta County area, country. and the amount of banking business generated Financial and managerial resources and future therein (about $100 million in deposits held by prospects. Applicant’s financial condition, and that banking offices located in the area), the seven of its subsidiary banks, is regarded as generally banks and 20 banking offices serving the area do satisfactory. Its prospects are also regarded as not seem so few in number as to make the area favorable, as are those of its subsidiary banks. The especially attractive to potential entrants; nor do management of Applicant and its subsidiary banks they make it imperative that a mere possibility of is considered capable and experienced and in all such entry be preserved; nor similarly do they as­ respects satisfactory. sure that supervisory approval prerequisite to new National Valley’s financial condition is regarded entry could be readily obtained. The fact that the as satisfactory. Its management, however, was con­ banks presently operating in the area include the siderably weakened by the death, in 1967, of the two largest banks in the State, as well as a sub­ president who had formerly dominated its man­ sidiary of the State’s third largest bank holding agement and policies. While his successor has had "See, e.g., Application of BT New York Corpora­ forty-six years of service with the bank, his ex­ tion, 54 Federal Reserve Bulletin 225 (1968); Applica­ perience does not encompass all areas of bank tion of Allied Bankshares Corp., 53 Federal Reserve Bulletin 763 (1967). management; he is already past the usual retire- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

780 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 ment age; and the bank is without a qualified suc­ my concern over the clear effect of particular de­ cessor. While the record does not establish that cisions in speeding the trend toward undue con­ Applicant’s assistance is essential to the solution of centration of banking resources in a few large these difficulties, consummation of the present pro­ organizations to the detriment of viable competi­ posal would assure their satisfactory solution, and tion and, ultimately, the public interest. On each consideration of this factor therefore provides some of these occasions I have, in one form or another, weight toward approval of the application. emphasized and re-emphasized my concern, assert­ Convenience and needs of the community in­ ing that it paralleled the concern of Congress as volved. The convenience and needs of customers reflected in its enactment of the Bank Holding in those areas in which Applicant’s present sub­ Company Act of 1956, and in the 1966 amend­ sidiaries are located would not be affected by con­ ments to that Act. The latter amendments establish summation of the proposal. standards uniform with those found in the Bank It does not appear, and Applicant does not con­ Merger Act of 1960, as amended in 1966. The tend, that there are banking needs in Staunton or amended provisions of the Bank Holding Company Augusta County which are not being served by the Act and the Merger Act incorporated the prohibi­ banks located therein. Rather, Applicant contends tion of section 7 of the Clayton Act with respect that National Valley, partly because of the highly to acquisitions whose effect may be “substantially conservative policies followed for many years by to lessen competition, or to tend to create a monop­ its former president, has not kept pace with the oly” and made clear that the competitive standard needs of the community and is not an aggressive to be applied in passing upon bank holding com­ competitor in the banking business. Service defi­ pany and merger applications was that of the anti­ ciencies of National Valley appear to exist in the trust laws, statutes, and case law. (See H.R. Rep. areas of consumer lending, small business financ­ No. 1221, 89th Cong., 2d Sess. 3 (1966).) ing, and college tuition loans. In addition to sup­ Application of the antitrust laws, as reflected in plying needed management personnel, Applicant section 3 of the Bank Holding Company Act, to proposes to assist National Valley in the following United Virginia Bankshares’ proposal to acquire respects: prompt modification and modernization The National Valley Bank of Staunton permits, in of the bank’s present quarters; prompt initiation of my judgment, but one course of action—denial of a program to provide new branches; provision of the application. Five bank holding companies now computer facilities; expansion of trust and loan control 37 per cent of the total deposits of all com­ services; and implementation of an aggressive mercial banks in the State of Virginia. The nine marketing program. Applicant has demonstrated its largest banking organizations in the State control willingness and ability to strengthen management 63 per cent of such deposits. Applicant, the largest and provide for effective administration of banks banking organization in the State, controls 14.3 per which it has previously acquired, and it appears cent of the total deposits in the State, operating nine that National Valley and, indirectly, the banking banks with 86 offices. Approval of this application, customers of the community, would receive signif­ the majority notes, will increase this control per­ icant benefits from the proposed affiliation. Con­ centage by less than one-half of 1 per cent. I re­ sequently, this factor is regarded as favorable to call that, similarly, in approving Applicant's last approval of the application. bank acquisition, in 1966, the Board noted that Summary and conclusion. On the basis of all such acquisition would increase Applicant’s control relevant facts contained in the record, and in the of the total deposits by but .2 per cent. At that light of the factors set forth in section 3(c) of the time Applicant controlled 12 per cent of the total Act, it is the Board’s judgment that the proposed deposits in the State, and the then four bank holding transaction would be in the public interest and companies in the State controlled 27 per cent of that the application should be approved. such deposits. In a two-year period, 12.1 per cent has grown to 14.3 per cent and 27.7 per cent has Dissenting Statement of Governor Robertson become 37 per cent. As I have often noted, citing There have been numerous occasions on which the Supreme Court decision in United States v. I, either concurring in a majority action of the Philadelphia National Bank, 374 U.S. 321, “if con­ Board or dissenting from such action, have stated centration is already great, the importance of pre- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements TRANSFER OF FEDERAL RESERVE BRANCH count rates of those banks from 5!A to 514 per TERRITORY cent, effective on the dates shown. Effective October I, 1968, the territory of the Char­ Chicago August 23, 1968 lotte Branch of the Federal Reserve Bank of Rich­ Kansas City August 23, 1968 mond will be extended to include 25 southeastern Philadelphia August 23, 1968 counties of South Carolina (Allendale, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun, Charleston, Cleveland August 23, 1968 Chesterfield, Clarendon, Colleton, Darlington, Dil­ Boston August 27, 1968 lon, Dorchester, Florence, Georgetown, Hampton, Dallas August 28, 1968 Horry, Jasper, Kershaw, Lee, Marion, Marlboro, Atlanta August 30, 1968 Orangeburg, Sumter, Williamsburg), which had New York August 30, 1968 been included in the territory served by the Head St. Louis August 30, 1968 Office at Richmond. The Charlotte Branch now San Francisco August 30, 1968 serves the entire State of South Carolina and 50 counties in western North Carolina. Approval by the Board of Governors of similar The map of the Federal Reserve System on the actions by the directors of the Federal Reserve Banks inside back cover of this Bulletin has been re­ of Minneapolis and Richmond, effective August 16 vised to reflect this transfer of territory. and August 19, 1968, respectively, was announced in the August 1968 Bulletin. As of August 30, 1 968, the rate in effect at all Federal Reserve Banks DEATH ON BOARD'S STAFF was 514 per cent. Albert R. Koch, Deputy Director of the Division of Research and Statistics and Associate Economist, Federal Open Market Committee, died on August REPORT ON BANK CREDIT-CARD AND CHECK-CREDIT PLANS 21, 1968, Mr. Koch joined the Board’s staff as an Economist in the Capital Markets Section of the The Board of Governors of the Federal Reserve Division in 1946 and had since served in a number System has made public the report of a System Task of important advisory positions within the System. Group on Bank Credit-Card and Check-Credit Plans. Formation of the Task Group, made up of members of the research staffs of the Federal Re­ CHANGES IN THE BOARD’S STAFF serve Banks and the Board of Governors, was an­ The Board of Governors has announced the ap­ nounced in March 1967. At that time it was noted pointment of Robert E. Nichols as a Special Assist­ that because of the rapid spread of a variety of ant to the Board. Formerly the financial editor of credit-card and check-credit plans among banks in the Los Angeles Times, Mr. Nichols has also been all parts of the country, this type of credit is becom­ associated with the San Diego Union, the Wash­ ing one of the most important and dynamic com­ ington Bureau of the New York Herald Tribune, ponents of consumer credit. As such, the emer­ Time, Inc., and the Columbia Broadcasting Sys­ gence of this type of credit may have a significant tem. He attended San Diego State College, St. impact on developments in the consumer credit John’s College at Annapolis, and George Washing­ area. This study was undertaken as one phase of ton University. the System’s continuing interest in credit develop­ ments. Throughout the course of the study, the work of FEDERAL RESERVE DISCOUNT RATES the Task Group has been oriented toward the broad­ The Board of Governors of the Federal Reserve Sys­ er economic aspects of credit-card and check-credit tem has approved the actions by the directors of the developments as they relate to the consumer, the Federal Reserve Banks listed below reducing the dis­ structure of retailing, commercial banking, and the 782 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 781 venting slight increases in concentration and so pre­ acquisition proposal. Further, if rendition of aggres­ serving the possibility of eventual deconcentration sive services is a decisive factor, the Staunton com­ is correspondingly great.” It is my judgment that munity has presently available to it, within Augusta the extent to which banking resources in the State County, 19 offices of six other banks, including the of Virginia have now been concentrated in a few two largest banks in the State. I am unable to con­ large organizations requires decisional action by the clude that any unserved need has been established Board that will encourage reduction in the existing with respect to the community involved. concentration level. A second circumstance relied upon by the ma­ The majority has found that considerations re­ jority in its approval action is the managerial prob­ lating to the convenience and needs of the commu­ lem in National Valley Bank. I find no evidence of nity involved outweigh any anticompetitive aspects record to indicate that National Valley has looked of this proposal, thus justifying, and even affirma­ for any solution to its managerial problem other tively supporting approval. In my judgment, the than Applicant’s proposal. Inasmuch as I view Ap­ record will not support this conclusion. Thus, I plicant’s proposal as an anticompetitive solution to am unable to conclude, as did the majority, that a any problem that exists with respect to National change by Applicant in National Valley’s asserted Valley, and finding no evidence of effort on Bank’s unaggressive attitude is a consideration outweighing part to resolve its problems in a less anticompetitive the undue anticompetitive aspects of this proposal. manner, I would foreclose use by Applicant and While National Valley has not grown as rapidly as Bank of the Bank Holding Company Act as an easy its competitors, the record reflects steady and sound out for operating problems that probably could be growth for the bank. Any deficiencies in its serv­ solved in a manner that would not diminish com­ ice, either with respect to type or scope, are sus­ petition. ceptible of remedy without reference to Applicant’s I would deny the application. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

783 public interest in general. The report is based to a ADVISORY COMMITTEE ON TRUTH IN LENDING large extent on information furnished by banks in The Board of Governors of the Federal Reserve Sys­ the Call Reports of Condition, However, supple­ tem announced the appointment of two additional mental information was obtained through other members to its Advisory Committee on Truth in means such as personal interviews, a special survey, Lending. (Names of the other I 8 members were an­ and by examination of related credit-card plans nounced in the August 1968 Bulletin, page 695.) offered by nonbank companies. The two new members, both women, arc: Requests for copies of the report, entitled Bank Professor Jean A. Crockett Credit-Card and Check-Credit Plans, should be Department of Finance sent to Publications Services, Division of Adminis­ University of Pennsylvania trative Services, Board of Governors of the Federal Philadelphia, Pennsylvania Reserve System, Washington, D.C. 20551. Remit­ tance should accompany request and be made pay­ Miss Barbara A. Zimmelman able to the order of the Board of Governors of the Executive Director Federal Reserve System (prices shown on page CIVIC HOUSTON A-98). Houston, Texas. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication September 16 Industrial production declined in August and retail covered from the June-July strike-reduced level sales continued at advanced levels. Nonfarm em­ and production of some other materials rose ployment rose and the unemployment rate de­ slightly. clined. Commercial bank credit, time and savings deposits, and the money supply increased further. EMPLOYMENT Between mid-August and mid-September yields Nonfarm payroll employment rose by over on most U.S. Government securities and on cor­ 200,000 in August. Employment in trade, services, porate and municipal bonds increased. and State and local government moved up strongly and accounted for most of the rise. Manufacturing INDUSTRIAL PRODUCTION employment continued to show little change as declines in iron and steel and transportation equip­ Industrial production declined in August to 164.0 ment were about offset by gains in most other per cent of the 1957-59 average from 165.6 per manufacturing industries. The average factory cent in July under the impact of a sharp drop in workweek was 40.8 hours, down slightly from the output of iron and steel, following the labor con­ level of the previous month but 0.2 hours longer tract settlement at the end of July. Output of final than a year earlier. Primarily because of a decline products was unchanged but production of some in teen-age unemployment, the over-all unemploy­ industrial materials other than steel increased. ment rate dropped to 3.5 per cent in August. The Output of consumer goods remained at ad­ labor force also declined over the month, with the vanced levels as small changes in production in largest reduction occurring among adult women. some lines were about offsetting. Auto assemblies, after allowance for the model changeover period, DISTRIBUTION also changed little. Output of business equipment continued at the reduced level generally prevail­ The value of retail sales in August—after having ing since last November. Output of aluminum re­ advanced strongly in July—changed little and was about 10 per cent above a year ago, according industrial production to advance Department of Commerce estimates. Sales at both durable goods stores and nondurable goods stores were unchanged on a month-tomonth basis. Over the year, sales at durable goods stores rose 13 per cent and sales at nondurable goods stores increased 9 per cent. COMMODITY PRICES The wholesale commodity price index declined by an estimated 0.4 per cent in August reflecting largely decreases in prices of foods and foodstuffs. Prices of industrial commodities were unchanged as decreases for fuels and nonferrous metals offset increases for lumber, machinery, and apparel prod­ ucts. Since mid-August, prices of steel mill prod­ ucts have been raised about 2!/z per cent and increases have been announced for some packaging F.R. Indexes, seasonally adjusted. Latest figures shown are materials and chemicals. for August. 784 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

785 BANK CREDIT, DEPOSITS, AND RESERVES Net borrowed reserves averaged about $240 million over the 4 weeks ending August 28 com­ Loans and investments at all commercial banks pared with $190 million in July. Member bank increased $4.5 billion further in August following borrowings increased while excess reserves con­ an unusually sharp rise of more than $7 billion tinued about unchanged. Total and required re­ in July. Expansion over the 2 months was associ­ serves rose substantially. ated in large part with bank acquisitions of new Treasury issues and the financing of increased SECURITY MARKETS securities inventories at brokers and dealers. Sharply increased bank purchases of municipal Yields on most U.S. Government securities have and agency issues and continued expansion in risen since mid-August, especially in the bill sector. most major loan categories also have contributed The 3-month bill was bid at around 5.28 per cent to the growth in bank credit since midyear. in the middle of September, up from about 5.15 Time and savings deposits rose $3.4 billion in per cent a month earlier. The yield increases have August, considerably more than the large increase reflected in large part a lack of much customer in July. A major part of the July-August expansion demand, coupled with large dealer holdings and was accounted for by a sharp rise in outstanding generally high borrowing costs to finance them. negotiable CD’s following a substantial decline During the latter half of August, yields on cor­ over the previous 4 months. Inflows of consumer­ porate bonds remained relatively stable while yields type and savings deposits continued at about the on municipals advanced. Yields in both markets, moderate pace of other recent months. The money however, rose sharply during the first half of supply rose $800 million in August or less than September. In the stock market prices were little half the average monthly expansion over the May- changed until the first part of September when July period. U.S. Government deposits increased they, together with trading volume, increased substantially following a reduction in July. significantly. Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 years or more and for 90-day Treasury bills. Latest figures shown, week ending Sept. 6. 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 □ SEPTEMBER 1968 U.S. STATISTICS—Continued A-56 Industrial production A-6O Business activity A-6O 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-7O 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 SPECIAL TABLES: A-92 Stock market credit A-100 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, II, 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....................................... Aug. 1968 A-68 Banking and monetary statistics, 1967 Mar. 1968 A-88—A-98 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... Aug. 1968 A-91 1966.............................7.................... Feb. 1968 A-65.10 On, and not on, Federal Reserve 1967 ..................................................... May 1968 A-67.10 Par List, number............................ Aug. 1968 A-92 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, 1967........... Aug. 1968 A-93 and credit balances............................ Sept. 1968 A-92 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-4 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 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 than member bank Member bank P d e o a ri r t o e d U To .S ta . l Go B v r o o i t g u u , g h t s ­ e h t c t 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 r s 1 ­ ­ c v D o a a a n n u d i c s d n ­ e ­ t s s Float 2 t T al o ­ 3 s G to o c ld k T s r c o e u t i r u a n n u r e r n g y c t a ­ ­ d y s ­ r c C t e c u i i n o u i n l r c a n r ­ y ­ ­ T h c i r u n o a e r g s l a y d h s s ­ - Tr u e r w a y s it ­ h r e F F e s . e i o R g r r n v . ­ e B s, O a n t k h s er 2 c O F o a u t . c h R n ­ e t . r s B W F a . n R it k h . s re c r C s a o e e n n i u r n c d r v y ­ e 4 s 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 81 164 350 2,211 2,211 1939—Dec......... 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—Dec.......... 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 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 I960—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 1 13 490 2,34943,853 13,799 5,565 42,206 808 683 154 231 389 18,747 3,972 22,719 [966—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—Aug......... 46,612 46,558 54 89 1 ,423 48,210 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 45,851 1 ,336 1 ,021 143 457 -512 21,265 4,345 25,610 Mar,..... 49,511 49,452 59 682 1 ,59951,863 11,096 6,798 46,138 1 ,215 916 165 506 -536 21,354 4,226 25,580 Apr.......... 50,090 49,943 147 698 1 ,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 ,580 52,998 10,452 6,794 46,873 1 ,073 1 ,059 159 483 -581 21,179 4,326 25,505 June 51,306 51,160 146 705 1 ,71253,813 10,369 6,764 47,486 973 960 181 471 -474 21 ,350 4,363 25,713 July......... 52,090 52,041 49 538 1 ,87054,573 10,367 6,721 48,089 836 1 ,026 164 472 -436 21 ,510 "4,491 "26,001 Aug......... 52,646 52,463 183 568 Pl ,759 J'55,047 "10,367 "6,733 "48,193 "812 963 170 459 -102"21,652 "4,409"26,061 Week ending— 1967 Aug. 2.............. 46,833 46,833 119 I ,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 16.............. 46,716 46,604 112 129 1 ,36748,292 13,057 6,656 45,135 1 ,486 1 ,007 126 471 198 19,583 4,180 23,763 23.............. 46,504 46,504 47 1 ,61448,238 13,058 6,674 45,020 1,497 1 ,021 133 442 257 19,602 4,171 23,773 30.............. 46,249 46,249 .......... 46 1,29047,651 13,044 6,693 44,918 1 ,495 1 ,076 121 443 183 19,151 4,324 23,475 Sept. 6.............. 46,693 46,600 93 79 1 ,41048,247 13,008 6,714 45,131 1 ,495 697 133 471 110 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 4,295 24,316 27.............. 46,452 46,452 .......... 74 1,530 48,193 13,006 6,759 45,044 1 ,502 927 129 454 37 19,865 4,347 24,212 Oct. 4.............. 46,976 46,976 144 1 ,495 48,773 13,006 6,763 45,107 1,500 866 125 477 54 20,413 4,229 24,642 It.............. 47,563 47,319 244 145 1 ,418 49,247 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 Nov. 1............. 47,220 47,220 80 1 ,289 48,643 12,978 6,787 45,341 1,483 929 124 462 -210 20,279 4,426 24,705 8.............. 47,865 47,710 155 132 1,407 49,458 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 ,487 49,570 12,907 6,782 45,878 1,470 1 ,096 133 451 -240 20,470 4,229 2^,699 22.............. 47,837 47,712 125 127 1,777 49,796 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 Dec. 6.............. 48,902 48,719 183 87 1,655 50,721 12,770 6,774 46,482 1,441 1,306 160 444 -65 20,498 4,342 24,840 13.............. 48,853 48,853 121 1,65250,769 12,432 6,773 46,918 1,445 787 140 427 6 20,252 4,458 24,710 20............. 48,708 48,708 185 2,155 51,119 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 2,335 52,286 11,982 6,784 47,200 1,395 949 147 567 -685 21,480 4,968 26,448 10.............. 49,183 49,109 74 180 2,33451,772 11,983 6,781 46,857 1 ,385 1 ,054 161 493 -679 21,265 4,646 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 ,449 50,751 11,983 6,786 45,763 1,391 1 ,096 161 467 -426 21,069 4,603 25,672 For notes seo opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 P d e o a ri r t o e d U To .S ta . l Go B v r o i o t g u , u h t s g ­ t e h c t u a R m r c g i h e e t r i p a n e e s u t e s e s r 1 ­ ­ c v D o a a a n n u i d s c d n ­ - e t s s Float 2 t T al o ­ 3 s G to o c ld k T r s c o e t u i r u a n n u e r n r c g y t a - ­ y d s ­ ­ r c t e C c u i i n o i n u l r c a n ­ r y ­ ­ T h c i r u o n a e r g s l a y d h s s ­ ­ T t u h r w e r a y a i n t s h ­ m F r e F . e e R m s i o g e . r b n r ­ v B e e r a s O n b , k t a h s n e k r 2 c O o F t a u h . c n R e ­ t r . s B W F a . n R it k h . M s e r c m e o r C s a e b i e n u n n r e d r c v r ­ y 4 e b s an T k otal Averages of daily figures Week ending— 1968 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 1,267 50,949 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 t ,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 1,729 51,363 11,883 6,797 45,832 I ,301 992 152 489 -418 21,695 4,102 25,797 13.............. 49,278 49,166 1 12 787 1 ,473 51 ,595 11,609 6,795 46,205 I ,275 1 ,008 122 478 -474 21,386 4,162 25,548 20.............. 49,840 49,840 748 1,668 52,312 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 I ,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 1,637 52,570 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 ,804 52,871 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 ,467 53,030 10,484 6,796 46,668 I ,109 935 148 482 -684 21,652 4,046 25,698 15.............. 50,521 50,069 452 725 1 ,493 52,819 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 J ,076 165 463 -442 20,849 4,473 25,322 June 5 ....... . 50,619 50,619 772 1 ,54052,985 10,382 6,796 47,254 1 ,042 784 309 477 -742 21,038 4,294 25,332 12.............. 50,899 50,609 290 691 1,57653,242 10,367 6,794 47,506 1,004 856 157 457 -779 21,203 4,197 25,400 19............. 50,973 50,850 123 677 1 ,81253,537 10,367 6,782 47,574 982 1 ,072 146 451 -715 21,176 4,421 25,597 26.............. 52,009 51,797 212 820 1,737 54,685 10,367 ‘’6,766 '47,484 947 1 ,063 161 481 13 21,669 4,548 26.217 July 3.............. 52,217 52,217 506 1,831 54,656 10,367 6,720 47,797 880 1,115 185 522 -136 21,380 4,459 25,839 10............. 52,282 52,203 79 425 2,02654,800 10,367 6,724 48,267 837 903 181 490 -392 21,604 4,222 25,826 17............. 51 ,994 51,890 104 484 1 ,91454,467 10,367 6,727 48,257 831 1 ,106 155 470 -662 21,404 4,607 26,011 24............. 51,904 51,904 652 2,023 54,637 10,367 6,714 48,002 838 998 142 448 -420 21 ,710 4,551 26,261 31.............. 52,118 52.084 34 615 1 ,62754.466 10,367 6.719 47,851 826 1 ,033 155 443 -318 21,562 4,624 26.186 Aug. 7.............. 52,483 52.160 323 748 1 ,645 54,971 10,367 6,726 47,976 824 845 204 475 -274 22,0144,232"26,246 14............. 52,518 52,212 306 580 1 ,63654,820 10,367 6,730 48,289 811 927 189 449 -313 21,565 '’4,320 "25,885 21 ........ 52.788 52,604 184 619 1 ,98255,457 10,367 6,734 48,252 808 998 173 467 42 21 ,816 "4,409 "26,225 28.............. 52,663 52,663 .......... 374 1 .721 54,810 10,367 6,740 48,190 808 1 ,084 125 444 51 21 ,217 "4,565 "25,782 End of month 1968 June 52,230 52,230 305 1,941 54,610 10,367 6,708 47,640 838 1 ,074 153 507 9 21,462 4,005 25,467 July. 52,397 52,160 237 736 I ,648 54,880 10,367 6,710 47,979 803 1,113 202 479 -320 21 ,702 5,060 26,762 Aug. 53,044 53,044 .......... 529 1 ,837 55.461 "10,367"6,742 "48,341 "806 916 127 463 109 21.808 "4,187 "25,995 Wednesday 1968 June 5.............. 50,686 50,686 432 1 ,61752,787 10,367 6.796 47,473 1 ,015 396 164 470 -818 21,251 4,483 25,734 12............. 51,457 50,742 715 539 1 ,57253,676 10,367 6,791 47,652 1 ,001 505 143 453 -866 21,945 4,798 26,743 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 4,943 27,250 26.............. 52,032 51,879 153 412 1 ,641 54,214 10,367 6,735 47,646 905 1 .017 198 496 5 21,049 5,067 26.116 July 3.............. 52,230 52,230 505 1,82054,613 10,367 6,722 48,205 849 1.148 261 525 -393 21,107 4,584 25,691 10.............. 52,038 52,038 363j 1 ,74254,201 10,367 6,726 48,381 833 897 J55 466 -535 21,097 4,926 26,023 17.............. 52,318 51,969 349 921 2,189 55,563 10,367 6,728 48,219 836 969 135 480 -494 22,513 4,963 27,476 24.............. 51 ,904 51,904 765 1,77454,501 10,367 6,716 48,001 839 973 165 459 -421 21,568 5,048 26,616 31............. 52,397 52,160 237 736 1 ,64854,880 10,367 6,710 47,979 803 1,113 202 479 -320 21 ,702 5,060 26,762 Aug. 7.............. 52,798 52,160 638 514 1 ,51654,956 10,367 6,729 48,254 823 358 214 467 -299 22,235 "4,515 "26,750 14............. 52,521 52,212 309 291 1 ,74054,650 10,367 6,731 48,379 812 931 216 491 -389 21,309 "4,900 "26,209 21.............. 52,894 52,750 144 416 1 ,87955,241 10,367 6,737 48.288 807 1 ,046 125 450 41 21 ,587 "4,919 "26.506 28.............. 52,618 52,618 .......... 537 1 .54954,756 10,367 6,739 48,353 808 999 132 459 51 21.060 "5.073 "26,133 i 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. I, 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 □ SEPTEMBER 1968 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t l a d l qu R ir e e ­ d Excess B r F i o a n . a n R w g t k s . ­ s s F e r r r e v e ­ e e s T h o e t l a d l qu R i e re ­ d Excess B r F i o a n . a n w R g t k s . ­ s s F e r r r e v e ­ e e s T h o e t ld al qu R ire e d ­ Excess B r F i a o n a . n w g R t k s ­ . s s F e r r r e v e ­ e e s 1929—June............ 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June............ 1 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec.............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec.............. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec,............. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 1,011 13 6 7 1950—Dec............ 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 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 I ,042 1 ,035 7 18 -11 1963—Dec.............. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 26 -21 1964—Dec.............. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 1,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1966—Dec.............. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Aug............. 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 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 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—jan.............. 25,834 25,453 381 237 144 5,170 5,131 39 48 -9 I ,231 1 ,230 1 3 -2 Feb.............. 25,610 25,211 399 361 38 5,060 5,011 49 106 -57 1,221 1 ,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 Apr............. 25,546 25,276 270 683 -413 4,993 4,985 8 67 -59 1,159 1,160 -1 104 -105 25,505 25,085 420 746 -326 4,905 4,871 34 68 -34 1,163 1,151 12 76 -64 25,713 25,362 351 692 -341 5,120 5,029 91 69 22 1,145 1,150 -5 38 -43 July............. ”26,001 *25,703 ”298 525 ”-227 ”5,047 ”5,060 ”—13 12 ”-25 ”1,190 ”1,181 ”10 87 ”-77 ”26,061 ”25,688 ”373 565 ”-192 ”4,940 ”4,910 ”30 192 ”-162 ”1,165 ”1,162 ”4 2 ”2 Week ending— 1967—Aug. 2.... 23,974 23,679 295 116 179 4,800 4,778 22 28 -6 I ,189 1,183 6 2 4 9. ... 23,960 23,589 371 91 280 4,699 4,684 15 1 14 1,177 1 ,173 4 4 16.... 23,763 23,381 382 129 253 4,593 4,578 15 6 9 1,135 1,134 1 3 -2 23. . .. 23,773 23,300 473 47 426 4,590 4,577 13 13 I ,150 1,140 10 10 30.... 23,475 23,215 260 46 214 4,588 4,565 23 23 1,130 1,129 1 1 1968—Mar. 6.... 25,797 25,481 316 500 -184 5,204 5.167 37 1 36 1 ,237 1 ,238 -1 96 -97 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 1,138 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 1 1 109 -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 (2 124 -1(2 1,139 1,139 49 -49 22.... 25,379 25,057 322 669 -347 4,900 4,848 52 52 1,150 1,142 8 23 -15 29.... 25,322 24,931 391 764 -373 4,866 4,846 20 79 -59 1,134 1,130 4 19 -15 June 5.... 25,332 25,124 208 759 -551 5,024 5,001 23 79 -56 1,154 1,147 7 18 -11 12. . 25,400 25,090 310 678 -368 4,932 4,909 23 36 -13 1,123 1,125 -2 20 -22 19.... 25,597 25,331 266 664 -398 5,067 5,023 44 99 -55 1,138 1,130 8 61 -53 26.... 26,217 25,639 578 807 -229 5,146 5,107 39 92 -53 1,175 1,175 42 -42 July 3 ... . 25,839 25,657 182 493 -311 5,217 5,143 74 26 48 1,180 1,175 5 49 -44 10. 25,826 25,393 433 412 21 4,999 4,975 24 2 22 1,140 1 ,138 2 24 -22 17.... 26,011 25,737 274 470 -196 5,036 5,008 28 25 3 1,173 1,171 2 42 -40 24.... 26,261 25,851 410 639 -229 5,108 5.108 11 -11 1,212 1 ,209 3 171 -168 31 ... . 26,186 25,828 358 602 -244 5,176 5,097 79 15 64 1 ,217 1 ,208 9 126 -117 Aug. 7. . .. >'26,246 ”25,878 ”368 737 ”-369 ”5,112 ”5,093 ”19 337 ”-318 ”1,187 ”1,182 ”5 ”5 14.... ”25,885 ”25,569 ”316 576 ”-260 ”4,867 ”4,833 ”33 191 ”-158 ”1,153 ”1,146 7 ”7 21 ... . ”26,225 ”25,722 ”503 619 ”-116 ”4,906 ”4,898 ”8 278 ”-270 ”1,167 ”1,162 ”5 ”5 28.... *25,782 ”25,615 ”167 374 ”-207 ”4,893 ”4,854 ”38 ”38 ”1,147 ”1,148 10 ”-10 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 o BANK RESERVES AND RELATED ITEMS A-7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow­ Reserves Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves T h o e t l a d l Required Excess Banks T h o e t l a d l Required Excess Banks 761 749 12 409 -397 632 610 22 327 -305 ...........................1929—June 648 528 120 58 62 441 344 96 126 -30 ...........................1933—June 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1 ,303 1 1,302 2,210 1,406 804 4 800 ..........................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ...........................1945—Dec. 6,861 6,589 271 123 148 4,972 4,375 597 57 540 .........1947—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ...........................1950—Dec. 7,950 7,851 100 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. 9,557 9,509 48 32 16 8,448 8,129 319 48 271 ...........................1967—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 Ill -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. 10,268 10,195 73 262 -189 9,169 8,867 302 340 -38 .......................................May 10,275 10,241 34 258 -224 9,172 8,941 231 327 -96 .......................................June *10,446 *10,393 *53 152 *-99 *9,317 *9,069 *248 274 *-26 .......................................July *10,564 *10,498 *65 161 *-96 9,393 *9,118 *274 210 *64 .......................................Aug. Week ending—• 9,626 9,598 28 36 -8 8,360 8,120 240 50 190 .....................1967—Aug. 2 9,623 9,579 44 53 -9 8,461 8,152 309 37 272 .......................................... 9 9,559 9,506 53 53 8,476 8,163 313 67 246 ............................................16 9,492 9,467 25 3 22 8,549 8,117 423 44 379 .....................................23 9,482 9,444 38 38 8,275 9,077 198 46 152 ...........................................30 10,346 10,308 38 234 -196 9,011 8,768 243 169 74 .....................1968—Mar. 6 10,238 10,172 66 328 -262 9,066 8,818 248 (87 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 9,011 8,808 203 309 -106 ...........................................10 10,405 10,367 38 307 -269 9,412 8,944 468 (54 314 ...........................................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 I 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 10,152 10,118 34 278 -244 9,171 8,836 335 388 -53 ...........................................29 10,180 10,138 42 294 -252 8,974 8,837 137 368 -231 10,182 10,151 31 278 -247 9,163 8,906 257 344 -87 ...........................................12 10,237 10,212 25 164 -139 9,155 8,965 190 340 -150 ...........................................19 10,414 10,370 44 340 -296 9,482 8,988 494 333 161 ...........................................26 10,387 10,335 52 172 -120 9,054 9,003 51 246 - 195 .................................July 3 10,328 10,244 84 115 -31 9,359 9,037 322 271 51 ............................................10 10,459 10,428 31 121 -90 9,343 9,130 213 282 -69 ......................................17 10,499 10,441 58 200 -142 9,442 9,094 348 257 91 ...........................................24 10,545 10,477 68 179 -III 9,248 9,047 201 282 -81 ...........................................31 *10,539 *10,514 *25 no *-145 *9,408 *9,089 *319 230 *89 ..................................Aug. 7 *10,528 *10,457 *72 149 *-77 *9,338 *9,132 *206 236 *-30 ...........................................14 *10,576 *10,539 *37 152 *-115 *9,575 *9,123 *452 189 *263 ...........................................21 *10,532 *10,489 *43 158 *-115 >-9,213 *9,125 *88 206 *-118 ...........................................28 1 This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-8 MAJOR RESERVE CITY BANKS □ SEPTEMBER 1968 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Net—■ Gross transactions Net transactions Reporting banks and Bor­ Total week ending— s E er x r v c e e e ­ s s s 1 r a o t B w F o in . r R ­ g . s F i b e n N a d t n e e e r t r k ­ a l Sur o p r l us r P e e q a r o u v c i g f r e . e n d t ch P a u s r e ­ s Sales a 2 c tr - t a w io n a n s y ­ s 2 b c o h P u f a y u n s i r n e e ­ s g t s o S e f a l l l n i e n e s g t d L ea o t l o a e n rs s 3 de f r i a r 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 1968—July 3............ 107 141 1 ,118 -1,152 10,0 3,420 2,301 1,773 1 ,647 529 1,101 317 783 10............ 79 75 I ,440 -1,437 12,7 3,927 2,486 1,998 1 ,929 488 1,194 254 940 17............ 44 121 2,077 -2,154 18.8 3,812 1 ,735 1,632 2,181 103 1,675 93 1 ,582 24............ 20 271 1 ,763 -2,014 17.3 3,491 1 ,728 1 ,483 2,008 245 2,354 129 2,225 31............ 107 158 1 ,558 -1,608 13.8 3,472 1,913 1 ,543 1 ,929 371 2,356 148 2,208 Aug. 7............ 19 380 2,133 -2,493 21.5 3,809 1 ,676 1 ,381 2,428 295 2,311 165 2,145 14............ 62 225 2,708 -2,871 25.5 4,456 1 ,748 1 ,478 2,978 270 2,122 186 1 ,936 21............ 33 363 2,431 -2,762 24.3 4,174 1 ,743 1 ,533 2,641 210 2,120 170 1 ,949 28............ 33 70 2,494 -2,530 22.4 4,227 1 ,734 1 ,513 2,715 221 2,012 163 1 ,849 tf in New York City 1968—July 3............ 67 26 173 -132 2.8 1,152 979 744 408 235 762 146 615 10............ 20 2 404 -386 8.5 1 ,451 1,047 830 621 217 847 110 737 17 22 25 697 -700 15.3 1 ,337 640 631 705 8 1,313 82 1 ,231 24............ -9 1 1 704 -724 15.5 1 ,277 573 566 711 7 1,912 89 1 ,823 31............ 64 860 -796 17.1 1 ,488 628 628 860 1,684 89 1,595 Aug. 7............ 5 337 1 ,110 -1,442 31,0 1 ,591 480 480 1,110 1,506 75 I ,431 14............ 24 170 1 ,373 -1,518 34.5 1 ,824 452 442 1 ,382 9 1,146 96 1 ,051 21............ 12 274 1 .006 -1,267 28.4 1 ,509 503 497 1 ,012 6 1,195 80 1,114 28............ 24 1,152 -1,128 25.5 1 ,600 448 446 1,154 2 1,167 73 1 ,094 38 outside New York City 1968—July 3............ 41 115 945 -1,020 14.9 2,268 1 ,323 1 ,029 1 ,239 294 339 171 168 10............ 59 73 1 ,037 -1,051 15.6 2,476 1 ,439 1,168 I ,308 271 347 144 202 17 22 96 1,380 -1,454 21.2 2,475 1 ,095 1 ,000 1 ,475 95 362 11 351 24............ 29 260 1 ,059 -1,290 18.6 2,214 1 ,155 917 1 ,297 238 441 40 401 31............ 43 158 698 -812 11.6 1 ,984 1,286 915 1 ,069 371 672 59 613 Aug. 7............ 14 44 1 ,022 -1,052 15.1 2,218 1,196 901 1 ,317 295 805 90 715 14............ 38 55 1 ,335 -1,353 19.7 2,632 1,297 1 ,036 1 ,596 261 975 90 885 21 20 90 1,425 -1,494 21.6 2,665 1 ,240 1 ,036 I ,629 204 925 90 835 28............ 9 70 1,342 -1,403 20.4 2,627 1 ,286 1 ,067 1 ,560 219 845 90 755 5 in City of Chicago 1968—July 3............ 5 37 288 -320 29.9 547 259 250 296 8 10............ 4 16 233 -245 23.7 539 306 305 234 1 17 3 31 290 -319 29.8 536 246 241 295 5 17 17 24 -3 166 360 -528 47.7 553 192 165 388 28 23 23 31............ 10 126 237 -353 20.0 538 301 254 284 47 61 61 Aug. 7............ 3 408 -405 37.6 631 223 223 408 53 53 14............ 5 374 -369 35.4 651 276 276 374 39 39 21............ 3 367 -364 34.4 646 279 272 375 8 32 32 28. . ..... io 350 -360 34,6 626 276 263 363 14 75 75 33 others 1968—July 3............ 36 78 657 -699 12.1 1 ,721 1 ,064 779 943 285 339 171 168 10............ 56 58 804 -806 14.1 1 ,937 1 ,134 863 1 ,074 270 347 144 202 17............ 19 64 1 ,090 -1,135 19.6 1 ,939 849 759 1,180 90 345 11 333 24............ 31 94 699 -762 13.0 1 ,661 962 752 909 210 418 40 378 31............ 33 32 461 -460 7.8 1 ,446 985 662 785 323 612 59 552 Aug. 7............ 11 44 614 -647 11.0 1 ,587 973 678 909 295 752 90 662 14............ 32 55 961 -984 16.9 1 ,981 1 ,020 760 1,222 261 937 90 847 21............ 17 90 1 ,058 -1,131 19.3 2,018 961 764 1 ,255 197 893 90 803 28............ 10 60 992 -1 ,043 17.8 2,001 1,009 804 1,197 205 770 90 680 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

SEPTEMBER 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 Aug. 31 date rate Aug. 31 date rate Aug. 31 date rate Boston....................................... 5% Aug. 27, 1968 514 5% Aug. 27, 1968 6 6% Aug. 27, 1968 6*/2 New York....................................... 5% Aug. 30 1968 5*4 5% 6 644 Aug. 30, 1968 7 Philadelphia.................................... 5% Aug. 23’ 1968 5 VS 5% Aug. 23’ 1968 6 6*4 Aug. 23, 1968 6 VS Cleveland....................................... 5% Aug. 23* 1968 5^4 5% Aug. 23, 1968 6 6% Aug. 23, 1968 7 R ichmond..................................... 5% Aug. 19* 1968 51/S 5% Aug. 19 1968 6 6% Aug. 19, 1968 6 VS Atlanta........................................... 5% Aug. 30* 1968 5 VS 5% Aug. 30, 1968 6 6% Aug. 30, 1968 6 VS Chicago........................................... 514 Aug. 23* 1968 5 VS 5% Aug. 23, 1968 6 6*4 Aug. 23 1968 6 VS St I .outs.......................................... 5% Aug. 30 1968 5Vi 5% Aug. 30’ 1968 6 6*4 6 VS Minneapolis.................................... 5’4 Aug. 16' 1968 5 VS 5% Aug. 16, 1968 6 6’4 Aug. 16’ 1968 6 VS Kansas City.................................... 5% Aug. 23 1968 5 VS 5% Aug. 23' 1968 6 614 Aug. 23, 1968 6 VS Dallas. ............................................ 5’4 Aug. 28’ 1968 5 VS 5% Aug. 28, 1968 6 6% Aug. 28, 1968 6/2 San Francisco................................. 5% Aug. 30’ 1968 5'4 5% Aug. 30; 1968 6 6% Aug. 30, 1968 6'4 i Discounts of eligible paper and advances secured by such paper or 2 Advances secured to the satisfaction of the F.R. Bank. Maximum by U.S. Govt, obligations. Rates shown also apply to advances secured maturity: 4 months. by obligations of Federal intermediate credit banks maturing within 6 3 Advances to individuals, partnerships, or corporations other than months. Maximum maturity: 90 days except that discounts of certain member banks secured by U.S. Govt, direct obligations. Maximum matu­ bankers’ acceptances and of agricultural paper may have maturities not rity: 90 days. over 6 months and 9 months, respectively, and advances secured by FICB obligations are limited to 15 days. FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)-— Bank date all F.R. of date all F.R. of date all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941........ 1 -l'/2 1 1955—Cont. 1960 2 -21/4 June 3.....................^........ 4 1942 13 ..................... 2% 10.............................34 Oct 15 ............. . 14-i 1 1 Nov 2 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... 2'4 2 - '4 2'4 2(4 Aug. 1 1 2 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ^ 3 3'4 30........................... + % T Vi Sept. 9............................. 3 3 1956 1946 2'4-3 2’4 t H-I 1 ' 20............................. 2’4-3 2’4 1963 1 1 2’4-3 3 July 17............................. 3 -3'4 31............................ 3 3 ' 26............3...'4............ 1948 1 -1'4 1957 19................................ 3 -3'4 3 1964 " 23.......................... 3'4 3 VS Nov. 24.....................3..'.4...-.4 4 23................................ 1% 1(4 3 -3'4 3 30............................. 4 4 Dec. 2............................. 3 3 1950 '^ 1% 1958 1965 " 25................................ 1% Jan. 22.. 2’4-3 3 4 -4'4 4 VS 24............................. 13............................. 4'4 4*/4 1953 Mar. 7............................. 1’4-2 2 13 23............................... 2 2 21............................. 1967 Apr. 18............................. 4 -4'4 4 1954 ' 14............................. 4 4 Feb 5......................1..!.^..... 1^ Aug. 15............................. 1^ Nov. 20............................. 4 -4'4 4*4 15.............................. Sept. 12............................. 2 ■ 27............................. 4'4 4*4 Apr. 14.............................. 1^ 23............................. 2 2 M ’ a y 2 1 1 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t'4 18 N O o c v t. . 2 7 4. . .. . .. . .. . . . .. . .. . .. . .. . . . .. . .. . .. . . . .. . .. . . 2 2 - ’4 2'4 2 2 VI 1968 4'4-5 4*4 1955 1959 22..........5...................5 ^^ 1'4 Mar. 6.....................2..'.4..-..3 3 5 -5'4 ‘ 15............................... ^ 16............................. 3 3 ‘ 26........................... 5'4 May 29......................... 3 -3'4 3*4 5'4-5'4 5'4 mi June 12............................ 3'4 3 VS 5'4 5'4 Sept. 11....................... 3'4-4 4 12............................... 2 ' 18............................. 4 4 5'4 5'4 t Preferential rate of one-half of I per cent for advances secured by in the following periods (rates in percentages): 1955—May 4-6, 1.65; U.S. Govt, obligations maturing in 1 year or less. The rate of 1 per cent Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. was continued for discounts of eligible paper and advances secured by 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, such paper or by U.S, Govt, obligations with maturities beyond 1 year. 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.7 5; Oct. 5, 2.50; Oct. 23, Nov. 3, Note.—Discount rates under Secs. 13 and 13a (as described in table 2,75; 1962—Mar. 20-21, 2.7 5; 1964—Dec. 10, 3.8 5; Dec. 15, 17, 22, 24, above). For data before 1942, see Banking and Monetary Statistics, 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968—Apr. 4, 5,11, 15,16,5.125; 1943, pp. 439^2. Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7. 11-13, 19, 21, 24, 5.75; The rate charged by the F.R. Bank of N.Y. on repurchase contracts July 5, 16, 5.625; Aug. 16, 19, 5.25. against U.S. Govt, obligations was the same as its discount rate except Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-10 RESERVE AND MARGIN REQUIREMENTS □ SEPTEMBER 1968 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4 deposits 2 deposits 2 (all classes of banks) Time depos­ its Reserve Country Other Effective date 1 C b re a e c s n n e i k t t r y s r v a e l 3 b s c a R e i n r t e v y k ­ e s C ba o tr n u y k n s ­ b cl a ( a n o a s l k f s l e s s ) Effective date 1 Un c d it e y r ban O k v s er Unde b r a nks Over d S e in i p a t g s v o s ­ s ­ U ti n m d e e r d ep O os v i e ts r $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ lion lion lion lion lion lion In effect Dec. 31, 1949 22 18 12 5 1966—July 14,21 5 16^ 5 12 54 54 5 Sept. 8, 15 6 1951—Jan. 11. 16... 23 19 13 6 Jan. 25, Feb. 24 20 14 1967—Mar. 2 3ft 31/z 1953—July 9, 1.... 22 19 13 Mar. 16 3 3 1954-—'June 24, 16... 21 5 July 29, Aug. 20 18 12 1968—Jan. 11, 18 16^ 17 12 12'4 1958—Feb. 27, Mar. 191/1 171/4 11^4 Mar. 20, Apr. 1 19 17 In effect Aug. 31,1968.. 161/1 17 12 121/4 3 3 6 Apr. 17............... 181/1 Apr. 24............... 18 1614 Present legal I960—Sept. 1............... 17i/i requirement: Nov. 24............... 12 Minimum. . .., 10 7 3 3 3 Dec. 1............. 161/z 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, I960, 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 1960 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 Listed bonds convertible into stocks.................. 50 60 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 Bonds convertible into listed stocks,................. 50 60 Regulation G: For credit extended by others than brokers and dealers and banks on: Listed stocks........................................................ 70 80 Bonds 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

SEPTEMBER 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................ 314 314 Multiple maturity: 3 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 | 514 Single-maturity: 6 months to 12 months................. 3’4 41/2 Less than $100,000.................. 514 5 5 90 days to 6 months...................... 2»4 $100,000 or more: Less than 90 days.......................... 1 1 4 30-59 days...................... 514 | 514 (30-89 days) 6 90 0 - -8 1 9 79 d d a a y y s. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514 6 5% 180 days and over............ 6% 1 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. >67. . . . Feb. 1, 1936, the FDIC has established identical rates for nonmember 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 All Ail Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending June 19, 1968 Four weeks ending July 17, 1968 Gross demand—Total... 159,759 34,634 6,876 57,080 61,169 Gross demand—-Total.... 165,890 36,553 7,106 59,322 62,910 Interbank.................. 17,595 6,594 1,220 7,677 2,106 Interbank...................... 18,997 7,248 1 ,292 8,180 2,278 U.S. Govt................. 4,276 757 182 1,626 1,712 U.S. Govt...................... 4,968 1,111 228 1,830 1 ,800 Other........................ 137,888 27,284 5,474 47,778 57,352 Other............................. 141,926 28,194 5,587 49,313 58,832 Net demand 1................. 124,454 23,256 5,113 44,407 51,679 Net demand 1................... 127,461 23,899 5,286 45,492 52,784 Time......................... 152,274 19,323 5,617 58,122 69,213 Time......................... 152,872 19,387 5,633 58,256 69,597 Demand balances due Demand balances due from dom. banks.... 8,528 347 439 1,970 5,771 from dom. banks.......... 8,966 415 421 2,034 6,096 Currency and coin.......... 4,347 353 77 1,341 2,576 Currency and coin............ 4,459 359 81 1,370 2,649 Balances with F.R. Balances with F.R. Banks........................... 21,066 4,619 1,061 8,846 6,540 Banks............................. 21,515 4,740 1,087 9,027 6,661 Total reserves held....2..5..,.4. 13 4,972 1,138 10,187 9,116 Total reserves held.......... 25,974 5,099 1 ,168 10,397 9,310 Required....2..5...,.1..2..0.... 4,945 1,134 10,155 8,887 Required........................ 25,517 5,059 1,165 10,344 8,950 Excess........................... 293 27 4 33 229 Excess............... 457 40 3 53 360 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 □ SEPTEMBER 1968 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1968 1968 1967 Aug. 28 Aug. 21 Aug. 14 Aug. 7 July 31 Aug. 31 July 31 Aug. 31 Assets Gold certificate account................................................. 10,026 10,026 10,026 10,026 10,025 10,026 10,025 12,499 Cash............................................................................. 333 345 355 357 369 332 369 333 Discounts and advances: Member bank borrowings..................................... 537 416 291 504 724 529 724 36 Other............................................................................ 10 12 12 Acceptances: Bought outright........................................................ 52 52 54 54 56 51 56 65 Held under repurchase agreements....................... 44 74 43 43 Federal agency obligations—Held under repurchase agreements............................................................... 4 1 44 U.S, Govt, securities: Bought outright: Bills.......................................................................... 18,768 18,900 18,362 18,310 18,310 19,111 18,310 13,927 Certificates—Special....................... Other........................................... Notes........................................................................ 28,143 28,143 27,746 27,746 27,746 28,205 27,746 26,090 Bonds........................................................................ 5,707 5,707 6,104 6,104 6,104 5,728 6'104 6,538 Total bought outright................................................ 52,618 52,750 52,212 52,160 52,160 53,044 52,160 46,555 Held under repurchase agreements............ ............ 140 308 594 237 '237 Total U.S. Govt, securities........................................... 52,618 52,890 52,520 52,754 52,397 53,044 52,397 46,555 Total loans and securities................................... 53,207 53,362 52,910 53,440 53,232 53,624 53,232 46,656 Cash items in process of collection............................. 7,279 8,126 8,634 7,611 7,685 6,982 7’685 6,475 Bank premises................................................................. 113 113 113 113 113 113 113 110 Other assets: Denominated in foreign currencies............... I ,094 1,094 1 ,090 1 ,223 1,217 1,055 1,217 866 IMF gold deposited^............................................... 230 230 230 230 230 230 230 233 All other...................................................................... 322 303 657 616 584 337 584 304 Total assets...................................................................... 72,604 73,599 74,015 73,616 73,455 72,699 73,455 67,476 Liabilities F R. notes........................................................................ 42,414 42,363 42,473 42,364 42,098 42,396 42,098 39,674 Deposits: Member bank reserves............................................... 21,060 21,587 21,309 22,235 21,702 21,808 21,702 19,789 U S. Treasurer—General account............................. 999 1,046 931 358 1,113 '916 1,113 1,051 Foreign............................................................... 132 125 216 214 202 127 202 144 Other: IMF gold deposit^................................................ 230 230 230 230 230 230 230 233 All other................................................................. 229 220 261 237 249 233 249 216 Total deposits.................................................................. 22,650 23,208 22,947 23,274 23,496 23,314 23,496 21,433 Deferred availability cash items................................... 5 ,730 6,247 6,894 6,095 6,037 5,145 6,037 4,768 Other liabilities and accrued dividends......... 376 386 366 386 375 389 375 267 Total liabilities ...................................................... 71,170 72,204 72,680 72,119 72,006 71,244 72,006 66,142 Capital accounts Capital paid in............................................................... 618 618 618 618 618 618 618 588 Surplus................. 598 598 598 598 598 598 598 570 Other capital accounts................................................... 218 179 119 281 233 239 233 176 Total liabilities and capital accounts............................ 72,604 73,599 74,015 73,616 73,455 72,699 73,455 67,476 Contingent liability on acceptances purchased for foreign correspondents............................ 149 150 148 128 128 149 128 252 U.S. Govt, securities held in custody for foreign account..................................................................... 7,436 7,496 7,467 7,576 7,609 7,590 7,609 7,535 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)...................... 45,110 45,123 44,927 44,793 44,848 45,197 44,848 42,189 Collateral held against notes outstanding: Gold certificate account.................................... ■ • 4,118 4,118 4,118 4,118 4,658 4,118 4,658 6,730 U.S. Govt, securities................................................ 42,291 42,291 42,291 42,291 41,791 42,291 41,791 36,671 Total collateral.............................................................. 46,409 46,409 46,409 46,409 46,449 46,409 46,449 43,401 i 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

SEPTEMBER 1968 □ FEDERAL RESERVE BANKS A-13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 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...................... 10,026 542 2,158 595 779 937 568 1 ,760 315 179 394 389 1 ,410 F.R. notes of other banks................... 783 72 154 58 54 75 96 46 28 38 28 35 99 Other cash............................................ 332 20 37 6 48 19 45 57 30 4 21 16 29 Discounts and advances: Secured by U.S. Govt, securities.... 411 29 156 2 20 5 16 70 9 7 8 46 43 Ac O ce th p e ta r n .. c .. e .. s . : ......................................... 118 ............ 37 ............ 31 ............15 25 ............10 ............ Bought outright............................... 51 51 Held under repurchase agreements.. Federal agency obligations'—Held under repurchase agreements.......... U.S. Govt, securities: Bought outright............................... 53,044 2,795 13,068 2,735 4,117 3,898 2,836 8,726 I ,904 1 ,027 2,132 2,225 7,581 Held under repurchase agreements.. Total loans and securities................... 53,624 2,824 13,312 2,737 4,137 3,903 2,883 8,796 1 ,928 1 ,059 2,140 2,281 7,624 Cash items in process of collection... 9,092 528 1,667 470 634 705 875 1 ,506 446 305 586 606 764 Bank premises...................................... 113 3 10 5 9 19 18 8 3 18 9 9 Other assets: Denominated in foreign currencies.. 1 ,055 52 1271 56 95 55 67 154 36 24 46 60 139 IMF gold deposited 2...................... 230 230 All other........................................... 337 17 83 21 26 26 17 53 12 6 15 13 48 Total assets.......................................... 75,592 4,058 17,922 3,945 5,778 5,729 4,570 12,390 2,803 1 ,618 3,248 3,409 10,122 Liabilities F.R. notes............................................ 43,179 2,497 9,827 2,466 3,483 3,965 2,340 7,685 1,603 743 1 ,625 1 ,497 5,448 Deposits: Member bank reserves............ 21,808 927 5,808 940 1 .501 965 1 ,288 3,171 754 557 957 1.244 3,696 U.S. Treasurer—General account.. 916 51 113 59 75 95 79 77 35 26 117 75 114 Foreign.............................................. 127 7 327 7 12 7 8 20 4 3 6 8 18 Other: IMF gold deposit 2...................... 230 230 All other........................................ 233 197 2 7 1 2 1 2 2 1 18 Total deposits..................................... 23,314 985 6,375 1 ,008 1 ,588 1,074 1,376 3,270 794 588 1 ,082 1 ,328 3,846 Deferred availability cash items......... 7,255 485 1 ,250 375 550 582 743 1 ,152 342 247 464 489 576 Other liabilities and accrued dividends 389 20 97 20 30 29 21 63 14 8 16 16 55 Total liabilities.................................... 74,137 3,987 17,549 3,869 5,651 5,650 4,480 12,170 2,753 1 ,586 3,187 3,330 9,925 Capital accounts Capital paid in..................................... 618 30 158 32 55 32 39 92 21 14 27 35 83 Surplus.................................................. 598 29 154 32 54 31 38 87 20 14 26 34 79 Other capital accounts......................... 239 12 61 12 18 16 13 41 9 4 8 10 35 Total liabilities and capital accounts.. 75,592 4,058 17,922 3,945 5,778 5,729 4,570 12,390 2,803 1 ,618 3,248 3,409 10,122 Contingent liability on acceptances purchased for foreign correspond­ ents................................................. 149 7 438 8 13 8 9 22 5 3 7 9 20 F.R. notes outstanding (issued to Bank)............................................ 45,197 2,601 10,233 2,540 3,762 4,112 2,459 7,963 1 ,687 788 1 ,709 1 ,614 5,729 Collateral held against notes out­ standing: Gold certificate account................ 4,1 18 330 500 300 600 600 350 1 ,000 206 77 ...........1.55 ............ U.S. Govt, securities...................... 42,291 2,301 9,900 2,500 3.200 3.540 2,200 7,150 1 .570 725 1 ,725 1 ,480 6,000 Total collateral..................................... 46,409 2,631 10,400 2,800 3,800 4,140 2,550 8,150 1 ,776 802 1,725 1,635 6,000 1 After deducting $784 million participations of other F.R. Banks. •3 After deducting $100 million participations of other F.R. Banks. 2 See note 2 to table at top of p. A-73. 4 After deducting $111 million participations of other F.R. Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-14 OPEN MARKET ACCOUNT □ SEPTEMBER 1968 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities by maturity Total Treasury bills Others within I year 1-5 years Month Exch., c G p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m re s a d h o t e i u r f m r t s i p t , y ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o u i c f r r h t i s . ty tions 1967—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 1 QAfi. Tan. . . 1,488 1,593 20 1,410 1 503 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 June 1,894 289 1 ,693 289 54 308 88 -308 July............ 404 409 65 404 409 65 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 Govt. (net re­ Out­ repur­ change1 c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s s i e ti c e u s r­ p m a u g r e r c n e h t e s a ­ ) se ri n g e h t t, a m c g h n e r a e e n s t e t e s ­ , 1967—July.... 286 370 87 -1 -13 -45 28 Aug.... -113 450 450 -249 -14 -263 Sept.. . . 27 - 44 19 453 453 361 -12 104 453 Oct..... 1,427 1,427 474 I -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 I 2,488 2,753 119 -12 -30 75 June... 50 10 1,560 1 ,560 1,605 3 75 1,683 July.... 1,145 908 166 -2 -32 132 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) 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 ia s n F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i n l t d h d e e s r r s ­ f S r w an is c s s 1967-—May............................ 149 115 25 3 1 1 1 I 2 June............................ 578 399 29 3 1 144 1 i 2 July.............................. 579 566 4 3 1 2 1 1 Aug............................. 866 761 3 3 I 94 1 1 3 Sept............................. 788 754 13 3 1 13 1 I * 3 Oct............................... 953 898 3 1 46 1 1 * 3 Nov............................. 1,307 1,140 19 3 1 140 1 1 2 Dec...................... 1 '604 1,140 45 3 1 413 1 1 * 2 1968—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , , 4 4 8 7 9 0 1 1 , , 1 1 4 5 2 2 4 5 5 0 2 2 5 5 3 3 1 1 2 2 5 7 1 1 ! I * 3 4 Mar.............................. 1 ,542 1,197 50 253 1 33 2 1 2 4 Apr............................... 1,536 1 '195 50 256 1 26 2 1 2 4 May............................. 1,926 1,544 50 256 I 67 2 t 2 4 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 Aug. 28 Aug. 21 Aug. 14 Aug. 7 July 31 Aug. 31 July 31 Aug. 31 Discounts and advances—Total.................................... 537 416 291 514 736 529 736 36 Within 15 days........................................................... 531 409 286 509 728 523 728 33 16 days to 90 days...................................................... 6 7 5 5 8 6 8 3 91 days to 1 year....................................................... Acceptances—Total..................................................... 52 52 98 128 99 51 99 65 Within 15 days............................................................ 18 20 66 92 59 16 59 21 16 days to 90 days...................................................... 34 32 32 36 40 35 40 44 91 days to 1 year................................................... U.S. Government securities—Total.............................. 52,618 52,894 52,521 52,798 52,397 53,044 52,397 46,555 Within 15 days 1........................................................ 2,652 2,878 7,393 7,669 7,269 I ,494 7,269 1 ,001 16 days to 90 days...................................................... 14,553 14,584 8,687 8,673 8,210 15,549 8,210 13,313 91 days to 1 year....................................................... 16,839 16,858 22,646 22,661 23,123 17,359 23,123 16,080 Over 1 year to 5 years............................... 7,879 7,879 7,737 7,737 7,737 7,902 7,737 14,745 Over 5 years to 10 years............................................. 10,107 10,107 5,470 5,470 5,470 10,141 5,470 900 Over 10 years.............................................................. 588 588 588 588 588 599 588 516 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (in billions of dollars) Period S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S th A e ’s rs 2 T S o M ( N e ta . 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 N Le .Y ad . ing S 6 M o S th A e ’s rs2 T S o N M ( t e a . x S Y l c A 2 . h ) 3 ’s 2 S o M 2 th 2 S e 6 A r ’s 1967—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.! 34.6 Sept.............................. 6,799.4 2,952.4 C513.6 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 41353.5 2’582.5 62,4 131.4 59.5 43.4 36.6 July............................. 8,163.0 3^726.1 1,807.9 4,436.9 2,629.0 64.3 140.3 59.9 43.7 37.0 Aug.............................. 8,521.8 4’, 079.6 1^825.2 4^442.2 2,617.0 65.2 147.7 60.8 43.7 36.5 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. AU data shown here are revised. For description of revision, see Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-16 U.S. CURRENCY □ SEPTEMBER 1968 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 ..................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941..................... 160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 ..................... 28,515 20383 1,274 1,039 73 2,313 6,782 9^201 7,834 2,327 4,220 454 801 7 24 1947..................... 28368 20,020 1304 1348 65 2’110 6; 275 9J19 8,850 2 ,’548 5; 070 428 782 5 17 1950..................... 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 ..................... 31'158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958..................... 32,193 22 356 2,182 1,494 83 2'186 6; 624 10,288 9,337 2,792 5,886 275 373 3 9 1959..................... 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 26! 341 3 5 1960..................... 32,869 23321 2327 1333 88 2,246 6^91 10,536 9,348 2,815 5,954 249 316 3 10 1961..................... 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962.................... 35,338 25356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963 ..................... 37392 26,807 3,030 1,722 103 2,469 7,373 L2J09 10,885 3,221 7,110 249 298 3 4 1964..................... 39319 28 JOO 3 305 1306 111 2317 7,543 12J17 11 J19 3J81 7,590 248 293 2 4 1965...................... 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8J35 245 288 3 4 1966...................... 44’663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967—July........... 44,866 31,774 4,674 1,873 137 2,625 7,989 14,47613,094 3,724 8,844 238 281 3 4 Aug........... 45,071 31 384 4*720 1,878 136 2,628 8,001 14,521 13,186 3,749 8,911 238 281 3 4 45’031 31 395 4,752 1,886 136 2,621 7,949 14,451 13,236 3,751 8,959 238 281 3 4 Oct,....... 45 321 32395 4303 1 '913 136 2358 8,013 14’572 13^325 3J66 9^031 238 283 3 4 Nov....... 46,463 32,937 4,865 1,965 136 2,748 8,266 14,957 13,524 3,832 9,163 239 283 3 4 Dec....... 47 ,'226 33,468 4'918 2'035 136 2,850 8,366 15,162 13,758 3,915 9,31! 240 285 3 4 1968—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 Feb........... 45 346 32,284 4,969 1 '895 136 2,665 s; 000 14,619 13,563 3,820 9,213 239 284 3 4 Mar....... 46’297 32'664 5'049 1 357 136 2,676 8,094 14,85213,632 3,840 9,261 239 285 3 4 Apr........... 46 321 32338 5,137 1 ,875 136 2,684 8 J04 15,002 13,683 3,857 9,293 240 286 3 4 May.......... 47,202 33,414 5,231 1 ,883 136 2,727 8,230 15,207 13,787 3,894 9,360 240 286 3 4 June.......... 47’640 33'745 5 309 1 ,'860 136 2,728 8,287 15,424 13,895 3,932 9,430 240 286 3 4 July........... 47 379 33,963 5',385 I ,871 136 2,720 8,261 15,590 14',015 3,971 9,511 240 286 3 4 i Outside Treasury and F.R. Banks. Before (955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—-Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Held by Kind of currency T s J o t u a t 1 l a n y 9 l d 6 i o 3 8 n 1 u g , t ­ A g a s o s g s l i d a e lv i c n e a u r s n r t d i t y Tre ca a s s h ury B F a F a n . n o R d k r . s A B F a g a . n e n R d n k . t s s July 31 1968 June 30 Ju 1 l 9 y 6 7 31 certificates Agents Gold................................................................................. 10,367 (10,026) 2341 Gold certificates.............................................................. (10,026) M0,024 I Federal Reserve notes.................................................... 44,849 117 2,750 41 ,982 41 ,722 39,410 Treasury currency—Total............................................. 6,710 (...........) 345 368 5,996 5,918 5,457 Standard silver dollars................................................ 485 .................. 3 ................. 482 482 482 Silver certificates......................................................... (...........) 392 Fractional Coin........................................................... 5,593 .................. 328 362 4,904 4,827 4,192 United States notes..................................................... 323 14 6 302 299 304 In process of retirement 4.................................. 310 309 310 87 Total—July 31,1968.................................................... 561.926 (10,026) 803 10,024 3,120 47,979 June 30, 1968..................................................... 561,506 (10,026) 838 10,024 3,003 47,640 July 31, 1967.................................................... 561,832 (13,000) 1 ,449 12,603 2,914 44,866 1 Outside Treasury and F.R. Banks, Includes any paper currency held s Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. A-5. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $230 million gold deposited by and held for the International are shown in parentheses. Monetary Fund. . 3 Consists of credits payable in gold certificates, the Gold Certificate Note.—Prepared from Statement of United States Currency and Coin Fund—Board of Governors, FRS. and other data furnished by the Treasury. For explanation of currency 4 Redeemable from the general fund of the Treasury, reserves and security features, see the Circulation Statement or the Aug. 1961 Bulletin, p. 936. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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—Dec................................................... 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—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 41.2 145.9 182.0 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 40.3 141.1 185.8 7 2 Mar.................................................. 183.4 41.1 142,2 186.7 182.0 40.7 141.2 187.7 6.6 Apr.................................................. 184.3 41.4 143.0 187.1 185.6 41.1 1 44.5 187.9 4 2 May................................................ 186.1 41.6 144,5 187.6 182.5 41.3 141.1 188.4 6.4 June................................................. 187.4 42.0 ’’145,4 188.2 '185.6 41.9 '143.6 ’■188.6 5,4 July.................................................. 189. 4 42,2 147,2 190,4 187.2 42.4 144. 8 190.8 5 7 Aug.p............................................... 190.2 42,6 147,7 193.8 186.8 42.6 144 3 194.3 5 5 Week ending—■ 1968—July 10............................................ 188.8 42.2 146.6 189.2 186.9 42.9 144.0 189.5 4.3 ' 17............................................ 190.0 42.2 147.8 190.2 188.5 42.4 146.1 190.6 5.4 24........................................... 188.6 42.2 146,4 191.1 185.6 42.2 143.4 191.5 7.5 31............................................ 189.5 42.2 147.3 191.8 186.9 42,0 145,0 192.4 6.2 Aug. 7p......................................... 190.2 42.2 148.0 192.4 188.1 42.5 145,6 193.0 5.7 ” 14p.......................................... 1 89.6 42.6 147.1 193.2 187.2 42.8 144,4 194,0 4.8 2 O’.......................................... 190.5 42.6 147.9 194.0 186.1 42.7 143,4 194.6 5.8 28P.......................................... 190.3 42.7 147.6 194,5 185.6 42.4 143.3 195.1 5.9 1 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 (1) 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 reserves1 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 reserves 1 re D se e r p v o e s i r t e s q s u u ir b e j m ec e t n t t o s 2 Period Total r N o b w o o r n e ­ d ­ qu R i e re ­ d Total s T a 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 . v S an t . , d Total r N o b w o o r n e ­ d ­ qu R i e re ­ d Total s T a a v i n m in d g e 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 HI.7 3.5 23.47 22.91 23,08 247.1 127.9 116.1 3.0 1967—Aug...... 24.63 24.59 24.23 266.1 144,6 117.5 4.0 24.28 24.19 23.90 263.7 145.2 114.8 3.7 Sept...... 24.79 24.72 24.48 268.4 146,3 117.6 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 May.... 25.71 24.98 25.24 277.3 151,5 122.1 3.7 25.51 24.76 25.09 276.5 152.3 118.6 5.6 June... . 25.82 25.12 25.44 278.8 151,8 123.2 3.9 25.71 25.02 25.36 278.3 152.2 121.3 4.8 July.. . . 25.92 25.43 25.60 280,9 153,8 124.3 2.7 26.00 25.48 25.70 281.7 154.1 122.6 5.0 Aug...... 26.43 25.92 26.05 285.9 156,5 124.6 4.8 26.06 25.50 25.69 283.6 157.2 121.7 4.8 1 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

A-18 BANKS AND THE MONETARY SYSTEM □ SEPTEMBER 1968 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 L ns , 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 n a u e c n t ­ ts, banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12 800 1950 Dec 30................... 22 J06 4,636 171’667 60 J 66 96,560 72'894 20 J78 2,'888 14'741 199,008 184’384 14 624 1963 Dec 20.............. 15 J82 5’586 333'203 189'433 103’273 69'068 33,552 653 40'497 354,371 323,251 31,118 1966 Dec 31................... 13’159 6 J17 422i676 261 J59 106 J72 60'916 44,316 1,240 54,745 442’152 400'999 41 150 1967—Aug. 30............ ... 13,000 6,700 445,600 268,500 111 JOO 63,500 46,200 1 ,500 65,900 465,300 418,600 46,700 Sept. 27.................... 13,000 6 800 451,200 272,000 1 12 J00 64 J00 46,700 1 J00 66,600 470 JOO 424JOO 46 JOO Oct. 25................... 13,000 6,800 454 J00 272,400 115 J00 66,600 47,100 1 ,200 67,300 474 JOO 428,300 46 200 Nov. 29.................... 12 J00 6,800 458,300 273 J00 117 J00 67 J00 48,500 I JOO 68,100 478 JOO 431 JOO 46 500 Dec 30................... 11J82 6’784 468 J43 282 J40 117,064 66,752 49,112 1 J00 69,839 487 J09 444’043 43 670 1968—Jan 31................... 12,000 6,800 466,300 279,100 116,900 66,600 49,100 1 JOO 70,400 485,100 439,800 45,300 Feb. 28.................. 11 '900 6,800 466'300 277 J00 117,600 67'600 48,800 1 JOO 71 J00 485 JOO 439 JOO 45,700 Mar. 27................... 10'500 6,800 467,700 279 J00 116,200 65,500 49 JOO 1 J00 72,300 484,900 438 JOO 46 JOO Apr. 24”.......... 10,500 6,800 469 J00 281 JOO 1 14 J 00 63,800 49,300 1 JOO 73,100 486 JOO 440,100 46 JOO May 29’’................. 10,400 6,800 471,500 282,600 116,000 64,400 50 JOO 1 J00 72,800 488,600 440,400 48 200 June 26”.................. 10 J00 6,600 476'400 287 J00 115 J00 62 J00 52,000 1 JOO 73 J00 493'300 444 JOO 48’900 July 31 r ”.............. 10 J00 6 J00 483 J00 291’600 117,400 64,300 52,400 800 74,300 500,300 450,800 49 JOO Aug. 28”................. 10’400 6 J00 484’300 290 J00 I 18,100 65 J00 52 J00 100 75 J00 501 JOO 451 JOO 49 JOO DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date De­ De­ For­ Treas­ At Total o b r C u e a t n u n s c i k r d y ­ s e d ju m e s a p t a d o e n d s ­ 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 e m s p a t a o d e n d s ­ d i t s 5 Total b m C a e n o r k m c s ia ­ l 1 b M sa a v u n i t k n u s g a s l 6 S P t a S e o v y m s i s t n a ­ 3 g l s e n i e g t n , 7 h c i u n o a r g s l y d h s ­ s b a c a v a o n n i m n 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 17J46 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 JOO 158,104 33,468 124,636 155,713 110,794 44,467 452 1 J06 392 6J86 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 [967 Aug 30. 175 100 38 400 136,700 173,500 38,600 134,900 236 JOO 177,900 58,600 1 ,900 1,500 3,900 1 300 Sept 27... 176 JOO 38 600 138 000 175 JOO 38,700 136'800 237 JOO 178’300 59 JOO 1 JOO 1 JOO 7 JOO 711 Oct 25 177 200 39 100 138 100 177’900 39 000 138 JOO 239’100 179,800 59’300 1 JOO 1 JOO 6 JOO 900 Nov ?9 ■ 178 300 39*000 139*300 180 700 39 700 141 JOO 240 500 180,900 59,600 1 900 1 JOO 5 200 1 800 Dec 30 . . 181 500 39*600 141’900 191 J32 41 071 150 J 61 242,657 182,243 60,414 2,179 1 J44 5 508 1'123 196R Jan 31 • 180,600 40 000 140 600 183 000 39 400 143,600 245 JOO 184,500 60,700 1 900 1 ,400 7 200 1 200 Feb 28 ■ 179 300 39*900 139 400 178,400 39,400 139,000 247 JOO 186 JOO 61,100 2,000 1 ,300 9,400 900 Mar 27 182 500 40 200 142 300 179 800 39 800 140’000 249 JOO 187’600 61 JOO 2’000 1’100 5 700 1 OOO Apr 24”.. 182'100 40 400 141 700 182,100 40’000 142 JOO 249,000 187,300 61 JOO 2,000 1 JOO 4 JOO 1 ,600 182 800 40 800 142*000 181'OOO 41 100 139 JOO 250 J 00 188 JOO 62 J 00 2 JOO 1 ^000 5J00 1 ^000 186,300 40’900 145*400 183,800 40 900 142 JOO 250 JOO 188 JOO 62 JOO 2,100 '900 5 JOO 1 JOO July 31 r ” 186,300 41 300 145 000 186'100 41 400 144 JOO 254 JOO 191'800 62 700 2,200 800 6,000 1 JOO Aug. 28”... 186,100 41 JOO 144 JOO 184,400 41 JOO 142,800 258 JOO 194,500 63,700 ......2.. .J.O..O 800 5 JOO 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 2 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,” 3 Other than interbank and U.S. Govt., less cash items in process of Section I 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

SEPTEMBER 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 Inter!iank3 Other Cla a s n s d o d f a b te ank Total Lo 1 a . n 2 s G U o .S v . t . Oth 2 er a C ss a e s t h s3 c c o a a a u l p n i c n i a d ­ t t - a s l * Total3 m D a e n ­ d Time U. D S. emand T 1 im . s e B in o g r s - c c T a o a p o u c i t n ­ t a a t l s l b N a b u o n e m f k r s ­ Other 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 8,57735,415 177,332 165,612 14,065 105,935 45,613 227 10,542 14,553 1947—Dec. 316.. 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 66 11,948 14,714 1966—Dec. 31 . . 381,684266,022 60,91654,745 70,085 464,376407,637 19,770 968 4,999 167,821 214,078 4,929 36,926 14,271 1967—Aug. 30. 404,280274,870 63,51065,90059,840476,930414,950 16,750 1 ,550 3,640 156,220236,790 6,52038,330 14,245 Sept. 27, 409,200278,140 64,50066,56062,300484,480422,660 17,040 1 ,530 7,020 159,300237,770 6,47038,160 14,244 Oct. 25, 412,380278,430 66,63067,32062,300487,590425,670 17,170 1 ,430 6,680 161,030 239,360 6,14038^650 14,236 Nov. 29 415,110 279,740 67,25068,12062,650490,710427,760 16,970 1 ,340 4,980 163,730240,740 6,92038,890 14,240 Dec, 30 424,134287,543 66,75269,83978,924517,374455,501 21,883 1 ,314 5,240 184,139242,925 5,84639,371 14,223 1968—Jan. 31 421,940 284,980 66,57070,39067,710503,580439,740 17,470 1 ,320 6,920 168,580245,450 6,82039,430 14,219 Feb. 28 423,280284,660 67,55071,07065,660502,570437,630 16,920 1 ,370 9,060 162,640247,640 7,27039,590 14,219 Mar. 27. 423,570 285,750 65,51072,31064,860502,640435,990 16,710 1 ,280 5,320 163,030249,650 8,150 39,670 14,218 Apr. 24*. . 427,060 290,110 63,84073,11064,740506,010438,130 17,340 1 ,230 3,940 166,330249,290 8,930 39,870 14,215 May 29*. . 428,890 291,680 64,390 72,82065,980509,020438,690 17,340 1 ,100 4,960 164,860250,430 9,70040,220 14,221 June 26*. . 434,360298,400 62,75073,21068,610517,370444,740 18,330 1,120 5,500 168,770251,020 11,54040,420 14,225 July 31 ' * 439,380300,870 64,25074,26070,850525,060453,180 19,100 1 ,290 5,690 172,240254,860 10,15040,750 14,221 Aug. 28* 442,170301,030 65,45075,69068,340525,020451,120 17,910 1 ,340 4,840 168,470258,560 1.1,14040,870 14,221 Commercial banks: 1941—Dec. 31 . 50,746 21,714 21,808 7,22526,551 79,104 71,283 io,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 H,065 105,921 30,241 219 8,950 14,011 1947—Dec. 316 116,284 38,057 69,221 9,00637,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31 . 322,661 217,726 56,163 48,77269,119403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—'Aug. 30 341,230224,340 59,14057,75058,810411,730 356,250 16,750 1,550 3,640 156,150 178,160 6,52033,360 13,744 Sept. 27 345,780227,430 60,09058,26061,300418,910 363,390 17,040 1,530 7,020 159,230 178,570 6,47033,190 13,743 Oct. 25 348,810227,420 62,37059,02061,300421,870366,250 17,170 1 ,430 6,680 160,940 180,030 6,14033,680 13,735 Nov. 29 351,100228,460 62,85059,79061,730424,650 368,100 16,970 1 ,340 4,980 163,640 181,170 6,920 33,890 13,739 Dec. 30 359,903 235,954 62,47361,47777,928451,012395,00821,883 1,314 5,234 184,066 182,511 5,77734,384 13,722 1968—Jan. 31 356,970233,010 62,23061 ,73066,830436,580 378,960 17,470 1 ,320 6,920 168,490 184,760 6,82034,420 13,717 Feb. 28 357,750232,420 63,15062,18064,760434,980 376,490 16,920 1 ,370 9,060 162,550 186,590 7,27034,520 13,717 Mar. 27. . 357,610233,370 61,10063,14063,950434,570 374,190 16,710 l ,280 5,320 162,950 187,930 8,15034^600 13,716 Apr. 24*. 360,960237,640 59,54063,78063,870437,850376,380 17,340 1,230 3,940 166,250 187,620 8,93034,810 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 June 26*. 367,520245,400 58,52063,60067,660448,350 382,150 18,330 1,120 5,500 168,690 188,510 11,54035,300 13,724 July 31*. . 372,100 247,620 60,04064,44069,920455,630 390,370 19,100 1 ,290 5,690 172,160192,130 10,15035,640 13,719 Aug. 28* .374,170247,300 60,99065,88067,390454,840387,370 17,910 1 ,340 4,840 168,390 194,890 11,14035,750 13,719 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. 97,846 32,628 57,914 7,30432,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31 263,687 182,802 41,92438,96060,738334,559291,063 18,788 794 4,432 138,218 128,831 4,61826,278 6,150 1 967—Aug. 30.... 278,259 187,130 44,41646,71352,060340,576293,115 15,891 1,393 3,128 128,086 144,617 6,20927,318 6,100 Sept. 27. . .. 281 ,993 189,870 45,00347,12054,477346,853 299,334 16,162 1 ,377 6,318 130,683 144,794 6,141 27,233 6,095 Oct. 25... . 284,341 189,676 46,96747,69854,470349,107 301,584 16,284 1 ,275 6,051 132,075 145,899 5,80827,575 6,086 Nov. 29........ 285,700 190,515 47,091 48,09454,809350,888 302,689 16,082 1 ,189 4,356 134,283 146,779 6,45627,734 6,083 Dec. 30 293,120 196,849 46,95649,315 68,946373,584326,033 20,811 1,169 4,631 151,980 147,442 5,37028,098 6,071 1968—Jan. 290,389 194,262 46,57949,54859,102360,773 311,534 16,668 1,170 6,313 138,263 149,120 6,42728,142 6,064 Feb. 28. 290,844193,582 47,35449,90857,129358,945 309,012 16,112 1 ,223 8,094 133,136150,447 6,82528,188 6,060 Mar. 27 290,527 194,303 45,51050,71456,437358,402306,703 15,917 1,129 4,707 133,587 151,363 7,655 28,250 6,049 Apr. 24. 293,281 197,820 44,285 51,17656,320361,004308,156 16,534 1 ,083 3,438 136,258 150,843 8,58428,424 6,046 May 29. 294,364198,874 44,733 50,75757,415 363,139 308,378 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 6,039 July 303,009 206,378 45,05751 ,57461,854376,785 320,310 18,229 1,146 4,988 141,559 154,388 9,763 29,160 6,027 Aug. 28* 304,669205,850 45,89852,921 59,497375,766317,186 17,088 1,193 4,181 138,031 156,693 10,68429,240 6,021 Mutual savings banks: 1941—Dec. 31 . 10,379 4,901 3,704 1,774 793 11,804 10,533 5 10,527 1,241 548 1945—Dec. 31 . 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 7 1,592 542 1947—Dec. 316 18,641 4,944 11,978 1 ,718 886 19,714 17,763 1 3 14 17,745 1,889 533 1966—Dec. 31 . 59,023 48,296 4,753 5,973 966 61,008 55,350 7 70 55,271 69 4,871 504 1967—July 26. 62,440 50,150 4,400 7,890 1,080 64,640 58,370 70 58,300 4,910 501 Aug. 30, 63,050 50,530 4,370 8,150 1 ,030 65,200 58,700 70 58,630 4,970 501 Sept. 27. 63,420 50,710 4,410 8,300 1,000 65,570 59,270 70 59,200 4,970 501 Oct. 25. 63,570 51,010 4,260 8,300 1,000 65,720 59,420 90 59,330 4,970 501 Nov. 29 64,010 51,280 4,400 8,330 920 66,060 59,660 90 59,570 5,000 501 Dec. 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 61,670 5,060 501 May 29. . . 66,680 52,880 4,370 9,430 880 68,770 62,130 80 62,050 5,110 501 June 26. . . 66,840 53,000 4,230 9,610 950 69,020 62,590 80 62,510 5,120 501 July 31 ' * 67,280 53,250 4,210 9,820 930 69,430 62,810 80 62,730 5,110 502 Aug. 28* 68,000 53,730 4,460 9,810 950 70,180 63,750 80 63,670 5,120 502 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-20 COMMERCIAL AND MUTUAL SAVINGS BANKS □ SEPTEMBER 1968 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Cla a s n s d o d f a b te ank Total Lo i a , n 2 s U.S. a C ss a e s t h s 3 c b a i a l l p i n i a t i d i t ­ e a s l Total3 De­ Demand r B i o n o g w r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N ba b u o n e m f r k s ­ Govt. Other ac­ mand Time Time1 2 counts4 U.S. Other Govt. Reserve city member banks: New York City:7’8 1941—Dec. 31................. 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31................. 26,143 7,334 17,574 1 '235 6,'439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31................. 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31.................. 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1 ,016 26,535 17,449 1,874 5,298 12 1967—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 25,854 19,704 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 6,894 14,573 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 ,1 69 54,139 6,565 497 1,175 27,132 18.77C 3,444 5,986 12 July 31.................. 53,429 40,718 5,675 7,036 16,643 73,553 56,095 6,763 606 1,132 28,299 19,295 3,453 6,081 12 Aug. 28”................ 53,187 39,806 5,855 7,526 16,347 72,977 54,043 5,971 673 720 27,137 19,542 4,108 6,088 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—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 I ,224 8 347 5,385 5,979 416 1,234 11 Nov, 29.................. 12,350 8,843 1 ,701 I ,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 1,323 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 t ,844 2,893 16,505 12,532 I ,263 9 121 5,577 5,562 909 1,345 9 July 31................. 13,371 9,332 2,071 I ,968 3,089 17,120 12,935 1 ,256 7 231 5,567 5,874 1 ,271 1 ,370 9 Aug. 28”................ 13,473 9,381 2,061 2,031 3,033 17,179 12,870 1 ,230 10 149 5,484 5,997 1 ,047 1 ,365 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—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 17,48726,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,55510,032 163 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 3,10410,069 164 Feb. 28.................. 105,503 72,949 14,700 17,85422,623 132,185 114,952 7,477 395 3,461 46,25657,363 3,41610,075 164 Mar. 27................. 105,064 73,232 13,790 18,042 21,820 130,999 113,620 7,247 393 1,679 46,687 57,614 3,52310,087 164 Apr. 24.................. 106,175 74,648 13,383 18,14422,147 132,442 114,208 7,577 380 1,412 47,409 57,430 4,24510,152 163 May 29.................. 106,505 74,697 13,496 18,312 21 ,950 132,720 113,758 7,311 321 1,587 46,851 57,688 4,40710,223 163 June 26.................. 108,235 76,998 12,929 18,308 22,350 134,805 115,394 7,632 366 1,660 48,180 57,556 4,76910,282 163 July 31.................. 109,210 77,325 13,451 18,43423,547 137,286 118,191 8,063 437 1,879 49,04058,772 4,26210,373 162 Aug. 28”................ 110,257 77,262 13,952 19,043 22,100 136,611 117,208 7,757 414 1,609 47,58859,840 4,62310,399 162 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 19,004 131,338 117,749 2,392 69 1,474 56,67257,144 30810,309 5,958 1967—Aug. 30...1..1..6..,.2..4..4....71,843 23,335 21,066 16,430 135,435 121,040 2,033 69 1,229 54,078 63,631 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 65910,489 5,908 Oct. 25.................. 118,889 72,777 24,463 21,649 16,864 138,574 124,039 2,103 106 1,511 55,61064,709 66010,746 5,901 Nov. 29.................. 120,324 73,245 25,00622,073 17,186 140,289 125,237 2,117 106 1,498 56,68264,834 92310,849 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 78310,947 5,878 Feb. 28.................. 122,372 74,266 25,11922,987 17,668 142,921 127,616 2,087 106 2,496 55,587 67,340 88911,045 5,874 Mar. 27.................. 122,968 74,834 24,823 23,311 17,527 143,526 127,958 2,058 96 1,606 55,92268,276 99611,100 5,864 Apr. 24.................. 124,227 76,289 24,289 23,649 17,606 144,949 129,505 2,076 96 1,317 57,35968,657 69511,169 5,862 May 29.................. 124,525 76,490 24,338 23,697 17,924 145,493 129,448 1 ,989 96 1 ,777 56,40669,180 1 ,25411 ,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 ,65711,252 5,857 July 31”................ 126,999 79,003 23,86024,136 18,575 148,826 133,089 2,147 96 1,746 58,65370,447 77711,336 5,844 Aug. 28”................ 127,752 79,401 24,030 24,321 18,017 148,999 133,065 2,130 96 1,703 57,82271 ,314 90611,388 5,838 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ 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— Securities Total Interbank 3 Other b c C a a l n l a l k s d s a a o n te f d Total Lo 1 . a n 2 s G U o . v S t . . Oth 2 er a C ss a e s ts h 3 c b c o a i a u l a l p i i n n c a t i d i ­ t t ­ e a s s l 2 Totals m D a e n ­ d Time U. D S. ema O n t d her Ti 1 m . 5 e 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 ba b o u n e f m k r s ­ Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31,. 121,809 25,765 88.912 7, 131 34,292 157,544 147,775 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 92,97534,882 61 9,734 13,398 1965—Dec. 31.. 303,593200,109 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.. 321,473217,379 55,78848,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—June 30.. 333,742223,707 53,871 56,164 64,545 410,308 358,745 17,778 1,399 5,135 159,991 174,441 5,05032,843 13,525 Dec. 30.. 358,536235,502 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 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 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 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,41 1 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1 ,918 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 22,3(2 111,188 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 27,44532,519 130 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 nonmember commercial: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 I ,872 329 1 291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 1 It 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 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1 ,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,64926,495 238 5,345 7,583 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173 560 29,53230,258 241 5,776 7,617 1967—June 30.. 61,882 37,429 13,597 10,855 7,667 71,119 63,274 862 154 571 28,50233,183 246 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 COMMERCIAL AND MUTUAL SAVINGS BANKS □ SEPTEMBER 1968 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets—• b c C a a l n l a l k s d s a a o n te d f Total Lo 1 a > n 2 s G U o S . v S e t . c . uri O tie t s h 2 er as C se as ts h 3 c c b o T a i u a a l l o p i n i n c a t t i d i t ­ t a ­ e s a l s l 2 Total 3 m I D n a e n te ­ d rba T n i k m 3 e U.S D . ema O n t d her Time r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N b b a o u n e f m r k s ­ Govt. Other Insured mutual savings: 1941—Dec. 31.. 1,693 642 629 421 151 1.958 1,789 1,789 164 52 1945—Dec. 31.. 10,846 3,081 7,160 606. 429 11,424 10,363 12 10,351 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 2 12 12,192 1,252 194 1965—Dec. 3t.. 48,735 39,964 3,760 5,010 904 50,500 45,887 7 35945,520 91 3,957 329 1966—Dec. 31.. 51,267 42,591 3,324 5,352 847 53,047 48,254 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 6 445 50,424 42 4,191 332 Dec. 30.. 55,936 45,489 3,111 7,336 881 57,863 52,910 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. 31“ 5,957 1 ,384 3,813 760 211 6,215 5,556 2 5,553 637 339 1965—Dec. 31.. 7,526 5,325 1,710 491 113 7,720 6,874 8 6,865 706 177 1966—Dec. 31.. 7,756 5,705 1,429 621 119 7,961 7,096 19 7,076 732 174 1967—June 30.. 8,113 5,871 1,269 972 136 8,343 7,383 36 7,346 742 171 Dec. 30.. 8,295 6,100 1,169 1 ,026 115 8,499 7,584 20 7,563 749 170 1 See table 11 Deposits Accumulated at Commercial Banks for Payment 8 Beginning with May 18, 1964, one New York City 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 loans” 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. 587, 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

SEPTEMBER 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 Total 1,2 Loans l,2 U.S. Other2 U.S. Other2 Govt. Govt. 1959—Dec 31................................................................ 185.9 107.8 57.7 20,5 189.5 110 0 58,9 20 5 I 960—Dec. 31................................................................ 194,5 113.8 59.8 20,8 198.5 116.7 61.0 20.9 1961—Dec. 30................................................................ 209,6 120.4 65.3 23.9 214.4 123.9 66.6 23.9 1962 Dec 31................................................................ 227.9 134.0 64.6 29.2 233.6 137.9 66.4 29.3 1963—Dec 31................................................................ 246.2 149,6 61.7 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................................................................ 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 1966—Dec 31............................................................... 3(0.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967—Aug. 30................................................................ 336.6 218.0 61.3 57.3 334.2 217.3 59.1 57.8 339.1 219.9 61.4 57.7 338.8 220.4 60.1 58.3 Oct. 25............................................................... 342.0 221.4 61.9 58.6 341.6 220.2 62,4 59.0 Nov. 29................................................................ 344.3 222.7 61.2 60.4 344.1 221.5 62.9 59.8 346.5 225,4 59.7 61.4 354.5 230.5 62.5 61.5 1968—Jan. 31 .............................................................. 349.5 227. 1 60.0 62.4 350.1 226.1 62.2 61.7 Feb. 28 .............................................................. 353.6 228.9 62.1 62.7 350.6 225.2 63.2 62.2 Mar. 27 .............................................................. 352,1 228.7 59.8 63.6 351.1 226.9 61.1 63.1 Apr. 24p. ........................................................... 354.4 230.9 60.0 63.4 353.9 230.5 59,5 63.8 356.4 232.1 60.7 63.5 354.5 231.1 60,0 63.4 357.3 233.4 60.5 63.4 360.9 238.3 58.7 63.9 July 31 r.............................................................. 364.6 237.7 62.6 64.2 364.7 240.2 60.0 64.4 Aug. 28''.............................................................. 369.1 240.3 63.4 65.4 366.5 239.6 61.0 65.9 1 Adjusted to exclude interbank loans. Note.—Seasonally adjusted series revised beginning Jan. 1959. For 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated monthly data 1948-68, see Aug. 1968 Bulletin, pp. A-94—A-97. For a for payment of personal loans were deducted as a result of a change in description of the seasonally adjusted series see the following Bulletins: Federal Reserve regulations. July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. 1967, pp. 1511­ Beginning June 30, 1966, CCC certificates of interest and Export­ 17. Import Bank portfolio fund participation certificates totaling an estimated Data are for last Wed. of month except for June 30 and Dec. 31; data $1 billion are included in “Other securities’* rather than “Other loans.” are partly or wholly estimated except when June 30 and Dec. 31 are call dates. 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................... 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, I PC” 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, J967, and $94,000 on Dec. 30, 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-24 COMMERCIAL BANKS □ SEPTEMBER 1968 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To Class of l T oa o n ta s l i F er e a d l ­ Com­ o p s r u e r c c c u a h r r a r it y s i i i e n n s g g in f s in ti a tu n t c i i o a n l s Other, U.S s . e G cu o r v it e ie r s n m <5 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 3, 4 and tur- To tate di­ 5 govt, rities 5 in­ al 5 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o e rs Banks Others uals3 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1 ,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 5,2763,729 1965—Dec. 31.. 306,060 2,103 199,555 71,437 8,212 5,258 3,231 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.41,003 7,769 1967—June 30.. 336,129 3,944221,28084,5399,333 4,5983,326 1 ,784 12,23455,27549,5305,065 54,233 n.a. n.a. n.a.46,8739,799 Dec. 30,. 361,186 4,057 233,18088,4439,2706,215 3,780 1 ,902 12,535 58,525 51,5855,65962,473 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 1,132 88,91221,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1965—Dec. 31.. 303,593 2,064 198,045 70,8878,191 5,088 3,172 2,093 13,14849,02645,2905,15559,120 13,134 13,233 33,858 38,4195,945 1966—Dec. 31.. 321,473 2,461 214,918 80,060 8,5365,6433,148 2,131 13,14853,68647,7705,127 55,788 12,08013,439 31,53640,761 7,545 1967—June 30.. 333,742 3,874219,833 84,0139,313 4,383 3,273 I ,701 12,11455,05649,3595,017 53,871 8,563 14,65331,91846,6069,558 Dec. 30.. 358,536 3,919 231 ,583 87,8709,2506,017 3,719 ! ,848 12,39458,209 51,395 5,60662,094 n.a. n.a. n.a.49,737 li,204 Member, total: [941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,6 53 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,1333,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1 ,046 811 1 ,065 113 7,130 4,662 839 57,914 7,803 4,81545,295 4,199 3,105 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 32,588 4,198 1966—Dec. 31.. 264,627 2,119 181,62472,553 5,318 5,3892,660 2,047 12,349 42,38437,9254,75741 ,924 8,567 9,789 24,60933,800 5,160 1967—June 30.. 274,247 3,377 184,41875,921 5,737 4,1752,743 1,620 11 ,35443,130 38,9124,63040,636 5,769 10,971 24,85539,085 6,731 Dec. 30.. 294,098 3,438 194,38979,3445,702 5,8203,099 1 ,754 11 ,58745,52840,4545,19046,956 9,633 13,657 24,61441,5207,795 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. 3|.. 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 ,214 173,109 598 1,025 3,265 3,465 2,799 1 ,209 4,920 1,871 942 2,286 4,967 708 1967—June 30.. 47,701 423 36,018 22,352 142,579 644 791 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 1 .897 1 ,962 2,303 6,318 737 City aj Chicago: 1941—Dec. 31.. 2,760 954 732 6 48 52 1 22 S5 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec, 31,. 5,088 1,801 1 ,418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 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 ,574 427 344 853 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 64,64624,784 1,206 954 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 69,01728,090 1 ,251 1 ,084 1,079 684 5,748 16,044 14,375 1,968 13,040 2,552 2,673 8,222 12,033 1,294 1967—June 30.. 99,850 1,168 68,987 28,887 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 72,713 30,609 1 ,311 881 1,143 578 5,446 16,969 15,047 2,148 14,667 3,140 3,557 8,312 15,3762,110 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 35926,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1965—Dec, 31.. 103,362 905 62,433 16,4783,840 650 698 174 1 ,983 20,217 18,423 1,17723,735 4,389 5,565 14,098 13,805 2,483 1966—Dec. 31,. 110,089 1,161 68,051 17,938 3,986 790 761 157 2,175 22,253 20,0001,307 22,419 3,791 5,917 13,096 15,4732,985 1967—June 30.. 114,563 1,594 70,681 19,1204,323 591 830 116 1 ,928 22,99620,735 1,38321,557 2,706 5,915 13,270 16,9263,804 Dec. 30.. 123,127 1 ,538 74,074 19,8394,332 607 906 100 2,200 24,453 21,5541,51624,689 4,168 7,793 13,147 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 7,458 3,113 343 516 151 817 10,312 9,050 383 14,555 n.a. n.a. n.a. 6,0672,003 1966—Dec. 31.. 59,257 425 34,781 8,045 3,237 431 543 142 953 11,566 10,018 427 14,239 n.a. n.a. n.a. 7,203 2,609 1967—June 30.. 61,882 567 36,862 8,618 3,596 423 583 164 879 12,145 10,618 435 13,597 n.a. n.a. n.a. 7,787 3,068 Dec. 30.. 67,087 618 38,791 9,099 3,568 395 681 148 948 12,997 11,131 469 15,516 n.a. n.a. n.a. 8,4863,676 ■ Beginning with June 30, 1948, figures for various Ioan items are available before 1947; summary figures for earlier dates appear in the shown gross (i.e., before deduction of valuation reserves); they do not preceding table. add to the total and are not entirely comparable with prior figures. Total 5 Beginning with June 30. 1966, loans to farmers directly guaranteed loans continue to be shown net. by CCC were reclassified as “Other securities,” and Export-Import Bank 2 Includes securities purchased under resale agreements prior to June portfolio fund participations were reclassified from loans to “Other se­ 30, 1967—they were in loans, for the most part in loans to banks. Prior curities.*’ This increased “Other securities" by about $1 billion. to Dec, 1965, Federal funds sold were included with total loans and loans 6 Beginning with Dec. 31, 1965, components shown at par rather than to banks. at book value; they do not add to the total (shown at book value) and are 3 See table (and notes) entitled Deposits Accumulated at Commercial not entirely comparable with prior figures. Ranks for Payment of Personal Loans, p. A-23. For other notes see opposite page. 4 Breakdowns of loan investment and deposit classifications are not Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ COMMERCIAL BANKS A-25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d B s w F e R a r . i n v R e t e h k ­ . s s r C c e a o n n u i c d r n y ­ b m a w a B d n e n i c a o s t k e l h t ­ - i s s c 7 ju m p D o d a s a t d s e e n e i - ­ - t d d s 8 m D e I s o n t t i ­ c e ? rba e F n ig k o n r­ 9 G U o .S vt . . g S l a o o t n c a v d a t t e l . c C c h o a f e e e i e f n t e f c r r c d d i s t . k ­ i ’ ­ s, I PC I b n a t n e k r­ G P S U i a o n o a n . g s v v S d t s ­ t a . , l S g l a o o t n c a v d a t t e l . IPC3 r B i o n o w g r s - ­ C co a a t u a c p l n ­ i­ ts Totals 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 HI 866 34,383 65 10,059 1965—Dec. 31.... 17.992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 1,008 263 12,186 134,2474,47230,272 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 54 111 826 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 12,135 133,6864,32529,827 1966—Dec. 31.... 19,069 5,426 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414145,7444,71731,609 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 15,614158,5605,05032,843 Dec. 30.... 20,275 5,916 16,997 151,948 19,688 1,909 5,219 15,471 8,608 158,905 1 ,258 267 15,836 166,9565,531 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 5,386 115,905 840 236 10,041 109,9254,23424,926 1966—Dec, 31 ... . 19,069 4,249 9,400 112,920 17,051 1,736 4,432 11,406 6,396 120,417 794 213 10,983 118,5764,61826,278 1967—June 30.... 18,999 3,728 8,686 109,132 15,610 1,557 4,580 11,566 6,857 114,123 1,314 239 12,747 128,9364,92027,237 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 12,856 135,329 5,37028,098 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 10 20 1,206 195 2,120 1947—Dec. 31 .... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 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 17,7721,841 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: 1941—Dec. 31.. .. 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31.... 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31 . . .. 1,070 30 175 3,737 1,196 21 72 285 63 3,853 .......... 2 9 902 ........ 426 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 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.. .. 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1963—Dec. 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 44,2041,952 9,472 1967—Juno 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. 31.. .. 2,210 526 3,2(6 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,t77 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 74 77 4,064 47,534 343 9,673 1966—Dec. 31 . . .. 5,839 2,506 6,545 52,832 2,335 57 1,474 6,805 1,161 48,706 69 71 4,260 53,384 308 10,309 1967—June 30.... 5,565 2,237 6,180 51,156 2,005 42 1,380 7,064 1,222 46,670 106 75 5,054 57,819 611 10,655 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: ^ 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 3,404 592 24,653 168 27 2,145 24,322 238 5,345 1966—Dec. 31.. .. 1,201 6,471 29,184 815 167 560 3,641 655 25,237 173 26 2,479 27,753 241 5,776 1967—June 30.... 1,126 5,838 28.135 728 134 571 3,641 670 24,191 154 28 2,921 30,234 246 6,048 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 7 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 8 Through 1960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and 9 For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 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 □ SEPTEMBER 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 an an 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 ments1 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 se­ 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 Aug. 2.......... 198,896 140,628 63,419 1 ,916 1 ,351 3,833 75 2,195 1 ,328 3,358 5,576 4,330 27,797 16,108 1 ,135 11,175 2,968 9.......... 197,140 139,448 62,868 1 ,913 1 ,243 3,822 72 2,234 1 ,335 3,083 5,312 4,356 27,854 16,096 1,115 11 ,110 2,965 16.......... 197,800 140,020 63,029 1 ,907 1 ,228 3,588 72 2,232 1,309 3,576 5,354 4,327 27,979 16,096 1 ,090 11,197 2,964 23.......... 196,895 139,075 62,554 1 ,905 1 ,031 3,490 75 2,253 I ,323 3,540 5,153 4,310 28,043 16,108 1,125 11 ,127 2,962 30.......... 198,441 139,120 62,189 1 ,899 1 ,389 3,296 77 2,262 1 ,332 3,632 5,111 4,384 28,094 16,153 1,129 11,128 2,955 1968 July 3......... 213,539 153,456 69,222 1 ,992 856 4,329 97 2,407 1 ,447 4,761 5,888 4,720 30,226 17,256 1 ,081 12,408 3,234 10......... 211 '837 151'934 69,192 2'000 781 4,210 95 2,411 1,460 3,750 5,752 4,649 30,281 17,302 1 ,068 12,218 3,235 17.......... 214,440 152,422 69’354 2 007 895 4,380 92 2,434 1 ,428 3,585 5,798 4,633 30,388 17,314 1 ,055 12,293 3,234 24......... 214,250 152'475 69^098 2’004 1 ,692 4,268 92 2,424 1 ,386 3,555 5,502 4,645 30,436 17,392 1 ,075 12,139 3,233 31.......... 215'927 153’796 69’181 2'01 3 1 ,699 4,628 96 2,416 1 ,374 3,985 5,660 4,717 30,434 17,526 1,073 12,231 3,237 Aug 7.......... 215,833 153,416 69,000 2,017 1 ,363 4,550 98 2,442 1,389 4,005 5,755 4,704 30,466 17,564 1,079 12,219 3,235 14......... 216'481 153,642 68,787 2,016 1 ,619 4,387 101 2,473 1 ,397 4,198 5,668 4,702 30,589 17,593 1 ,075 12,272 3,235 21.......... 217’191 153^368 68 ,’642 2,003 1 ,635 4,440 107 2,473 1 ,399 4,064 5,469 4,692 30,666 17,642 1 ,064 12,310 3,238 28.......... 216,'975 152,846 68 J 34 2^023 I ,764 4,392 108 2,487 1 ,404 4,231 5,107 4,682 30,740 17,741 1 ,082 12,189 3,238 New York City 1967 Aug. 2.......... 46,070 35,369 21,492 11 626 2,361 13 632 672 908 1,610 1 ,018 2,997 1,240 725 1,902 838 9.......... 45^087 34,610 21 J25 11 619 2,380 12 643 677 693 I ,499 1 ,016 3,001 1 ,228 724 1,820 838 16.......... 45’317 34’769 21,272 11 654 2,229 12 639 651 766 1 ,546 1 ,007 3,026 1,232 728 1 ,834 838 23......... 45^332 34’769 21'057 10 467 2,115 13 651 674 1 ,337 1 ,449 1 ,012 3,020 1 ,232 762 1 ,807 837 30.......... 45 ,'797 34,655 20^877 10 801 I ,944 12 650 680 1 ,203 I ,441 1 ,027 3,024 1 ,237 770 1,809 830 1968 July 3.......... 49,420 38,739 23,149 17 371 2,782 15 776 759 1 ,691 1 ,51 1 1 ,248 3,109 1 ,311 703 2,237 940 10......... 48'425 37,767 23; 190 17 491 2,707 15 783 766 817 1 ,489 1 ,227 3,104 1,312 682 2,107 940 17......... 49,423 37,955 23,192 17 573 2,878 15 797 742 729 1 ,518 1 ,210 3,108 1 ,303 679 2,134 940 24.......... 49,511 38,108 23,149 16 1,113 2,782 15 794 728 674 1,368 1 ,201 3,123 1 ,315 701 2,069 940 31.......... 50,460 38,708 23,205 1 4 960 3,101 15 791 714 861 1 ,546 1 ,219 3,096 1 ,326 704 2,098 942 Aug. 7.......... 50,406 38,551 23,093 15 571 3,000 15 795 715 1 ,200 1 ,662 1 ,207 3,087 1 ,334 707 2,092 942 14.......... 49,724 37,673 23,002 15 616 2,701 15 813 745 625 1 ,612 1 ,213 3,100 I ,327 705 2,126 942 21.......... 50’260 37 992 22'962 1 5 883 2,753 20 813 718 774 1 ,503 1 ,221 3,104 1 ,334 698 2,140 946 28.. . . . 50,129 37,687 22^832 15 876 2,722 17 824 713 807 1 ,401 1 ,221 3,108 1 ,321 721 2,055 946 Outside New York City 1967 Aug. 2.......... 152,826 105,259 41 ,927 1 ,905 725 1 ,472 62 1,563 656 2,450 3,966 3,312 24,800 14,868 410 9,273 2,130 9......... 152,053 104,838 41,743 1 ,902 624 1 ,442 60 1,591 658 2,390 3,813 3,340 24,853 14,868 391 9,290 2,127 16.......... 152’483 105 ,’251 41'757 1 ^896 574 1 ,359 60 1,593 658 2,810 3,808 3,320 24,953 14,864 362 9,363 2,126 23.......... 151,563 104’306 41 ,’497 1 ,895 564 1,375 62 1 ,602 649 2,203 3,704 3,298 25,023 14,876 363 9,320 2,125 30____ 152,644104,465 41 312 1 ,889 588 1,352 65 1,612 652 2,429 3,670 3,357 25,070 14,916 359 9,319 2,125 1968 July 3.......... 164,119 114,717 46,073 1 ,975 485 1 ,547 82 1,631 688 3,070 4,377 3,472 27,117 15,945 378 10,171 2,294 10.......... 163,412 114 J 67 46 302 1 '983 290 1 ,503 80 1 ,628 694 2,933 4,263 3,422 27,177 15,990 386 10,111 2,295 17.......... 165,017 II4>67 46; 1 62 1 ;990 322 1 ,502 77 1 ,637 686 2,856 4,280 3,423 27,280 16,011 376 10,159 2,294 24.......... 164,739 114,367 45,949 1 ,988 579 1 ,486 77 1,630 658 2,881 4,134 3,444 27,313 16,077 374 10,070 2,293 31.......... 165,467 115,088 45,976 1 ,999 739 1 ,527 81 1,625 660 3,124 4,114 3,498 27,338 16,200 369 10,133 2,295 Aug. 7.......... 165,427 114 865 45,907 2,002 792 1 ,550 83 1 ,647 674 2,805 4,093 3 397 27,379 16,230 372 10,127 2,293 14.......... 166,’757 115,969 45,785 2’001 ,003 1 ,686 86 1,660 652 3,573 4,056 3,489 27,489 16,266 370 10,146 2,293 21......... 166,931 115,376 45,680 1 ,988 752 1 ,687 87 1,660 681 3,290 3,966 3,471 27,562 16,308 366 10,170 2,292 28......... 166,846 115J59 45 302 2; 008 888 1 ,670 91 1 ,663 691 3,424 3,706 3,461 27,632 16,420 361 10,134 2,292 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 Cert if. tion mestic eign With- 1 to After Tax All of Other banks banks in 5 yrs. 5 yrs. war- other partici- seen- 1 yr. rants 3 pation4 rities Large banks— total 1967 26,004 4,738 225 2,810 12.750 5,481 3,713 24,435 1 ,274 2,842 43,544 21 ,208 4,216 209 2,584 15,327 8,651 ...........Aug. 2 25,458 4,243 220 2,766 12,772 5,457 3,784 24,378 1 .260 2,812 41 .866 19,900 3,927 216 2,591 15,232 8,603 ................... 9 25,628 4,197 12 3,275 13,007 5,137 3,842 24,268 1 .270 2,772 43,199 21 ,125 4,098 219 2,624 15,133 8,476 .....................16 25,581 4,174 6 3,434 12,860 5,107 3,830 24,374 1 ,281 2,754 40,934 19,485 3,726 220 2,698 14,805 8,521 ...................23 26,903 4,624 5 3,524 13,639 5,111 4,069 24,264 1 ,308 2,777 40,605 19,400 3,837 239 2,78614,343 8,582 ....................30 1968 25,327 1 ,945 5 .053 12,284 6,045 3,875 26,711 1 ,450 2,720 51 ,940 28,636 4,486 224 2,479 16,115 9,658 ..........July 3 25,209 1 ,877 5.084 12,221 6,027 3.939 26,673 1 ,441 2,641 48,632 25,503 4.074 201 2,870 15,984 9,594 .....................10 27,299 3 ,914 5.128 12,211 6,046 3,827 26,778 1 ,444 2,670 51 .646 26,817 4,286 227 2,843 17,473 9,408 .....................17 26,929 3 ,666 5,048 12,182 6,033 3,939 26,803 1 ,448 2,656 46,663 22,794 4,041 236 2,874 16,718 9,480 ....................24 27,070 3 ,817 ......... 5 ,053 12,135 6,065 4,003 26,921 1 ,463 2,674 49,160 25,178 4,208 199 2,803 16,772 9 ,928 ....................31 26,897 3,528 5,103 12,147 6,119 4,286 27,087 1 ,406 2,741 47,740 23,500 4,362 201 2,628 17,049 9,707 ...........Aug. 7 27,037 3,536 5,206 12,117 6,178 4,452 27,058 1 .412 2,880 48,962 25,243 4,319 204 2,844 16,352 9,686 .....................14 27,747 3,326 4,844 12,290 7,287 4,592 27,227 1 ,402 2,855 46,907 23,070 4,325 205 2,824 16,483 9,427 ....................21 27,781 3,380 .......... 4,851 12,234 7,316 4,664 27,436 1 ,395 2,853 46,958 23,521 4,110 201 2,973 16,153 9,598 ....................28 New York City 1967 4,943 1 ,277 101 526 1 ,954 1 ,085 777 4,305 74 602 12,619 7,781 247 83 331 4,177 3,153 ...........Aug. 2 4,823 1 ,143 101 500 1 ,984 1 ,095 780 4,212 72 590 12,677 7,958 271 99 338 4,011 3,175 ................... 9 4,758 1 ,093 842 1 ,892 931 925 4,206 70 589 12,539 7,475 262 109 323 4,370 3,130 . ...................16 4,750 1 ,104 846 1 ,872 928 936 4,232 71 574 12,276 7,752 213 105 333 3,873 3,214 . . .................23 5,223 1 ,373 ...... 860 2,066 924 1 ,107 4,164 7! 577 12,608 7,964 206 117 343 3,978 3,129 ....................30 1968 4,310 540 792 1 ,518 1 ,460 1 ,085 4,531 78 677 16,732 11,945 304 112 318 4,053 3,405 ..........July 3 4,292 537 791 1 ,509 1 ,455 1 ,066 4,554 80 666 16,550 11,281 358 100 357 4,454 3,321 .....................10 5,064 1 ,318 777 1 ,510 1 .459 1 ,096 4.530 84 694 17,503 11,551 372 118 340 5,122 3,243 ....................17 4,942 1 ,156 832 1 ,490 1 ,464 1 ,087 4,601 81 692 15,615 9,908 364 123 351 4,869 3,215 ....................24 5,258 1 ,454 ......... 836 1 ,510 1 .458 1,114 4,579 79 722 16,299 11 ,245 352 93 340 4,269 3,350 . ...................31 5,105 1 ,220 911 1 .520 1 ,454 1 ,234 4,675 80 761 14,915 10,353 285 89 341 3,847 3,303 ...........Aug. 7 5,262 1 ,319 931 1 ,554 I ,458 1 ,231 4,651 1 21 786 16,145 10,797 318 99 342 4,589 3,323 .....................14 5,393 1 ,263 856 1 ,601 I ,673 1 ,305 4,700 1 13 757 14,605 9,854 348 96 348 3,959 3,236 ....................21 5,436 1 ,3! 1 .......... 832 1 ,589 1 ,704 1 ,334 4,825 115 732 15,967 11 ,018 294 92 359 4,204 3,330 ....................28 Outside New York City 1967 21,061 3,461 124 2,284 10,796 4,396 2,936 20,130 1 ,200 2,240 30,925 13,427 3,969 126 2,253 11,150 5,498 ...........Aug. 2 20,635 3,100 119 2,266 10,788 4,362 3,004 20,166 1,188 2,222 29,189 11 ,942 3,656 117 2,253 11,22! 5,428 ................... 9 20,870 3,104 12 2,433 11,115 4,206 2,917 20,062 1 ,200 2,183 30,660 13,650 3,836 110 2,301 10,763 5,346 ....................16 20,831 3,070 6 2,588 10,988 4,179 2,894 20,142 1 ,210 2,180 28,658 11 ,733 3,513 115 2,365 10,932 5,307 ....................23 21,680 3,251 5 2.664 11,573 4.187 2,962 20,100 I ,237 2,200 27,997 1 1 ,436 3,63! 122 2.443 10,365 5,453 ....................30 1968 21,017 1 .405 4,261 10,766 4,585 2,790 22,180 1 ,372 2,043 35,208 16,691 4,182 112 2,161 12,062 6,253 ..........July 3 20,917 1 ,340 4,293 10,712 4,572 2,873 22,119 1 ,36! I ,975 32,082 14,222 3 ,716 101 2,513 1 1 ,530 6,273 .....................10 22,235 2,596 4,351 10,701 4,587 2,731 22,248 1 ,360 1 ,976 34,143 15,266 3,914 109 2,503 12,351 6,165 .....................17 21,987 2,510 4,216 10,692 4,569 2,852 22,202 I ,367 1 ,964 31,048 12,886 3,677 113 2,523 11,849 6,265 ....................24 21,812 2,363 .......... 4,217 10,625 4,607 2,889 22,342 1 ,384 1 ,952 32,861 13,933 3,856 106 2,463 12,503 6,578 ....................31 21,792 2,308 4.192 10,627 4,665 3,052 22,412 1,326 1 ,980 32,825 13,147 4,077 112 2,287 13,202 6,404 ...........Aug. 7 21,775 2,217 4,275 10,563 4,720 3,221 22,407 1 ,291 2,094 32,817 14,446 4,001 105 2,502 11,763 6,363 ....................14 22,354 2,063 3,988 10,689 5,614 3,287 22,527 1 ,289 2,098 32,302 13,216 3,977 109 2,476 12,524 6,191 ....................21 22,345 2,069 ......... 4,019 10,645 5,612 3,330 22,611 1 .280 2,121 30,991 12,503 3,816 109 2,614 11,949 6,268 ....................28 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-28 WEEKLY REPORTING BANKS □ SEPTEMBER 1968 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time Total Wednesday unad­ States Do­ Foreign I PC States Foreign justed and mes­ and Do­ polit­ U.S. tic polit­ mes­ Total 5 I PC 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 £a rue banks— Total 1967 Aug 2.................... 213,191 112,460 81,031 6,089 3,458 13,445 663 1,581 100,731 47,836 36,604 9,718 1 ,094 5,062 217 9.................... 209,538 108,457 78,410 5,565 2,789 13,170 642 1 ,556101,081 47,899 36,871 9,751 1 ,099 5,042 225 16.................... 210,884 109,725 81,127 5,351 2,1 34 13,603 635 1 ,542 101 ,159 47,908 36,945 9,738 1 ,105 5,032 235 23................... 208,194 106,678 78,502 5,102 2,479 12,793 607 I ,511 101,516 47,931 37,247 9,743 1,112 5,033 254 30.................... 209,513 107,686 79,157 5,503 2,322 12,643 616 1 ,510 101,827 47,957 37,449 9,841 1 ,099 5,024 262 1968 July 3.................... 227,548 123,430 87,998 6,202 2,793 15,837 728 1 ,864 104,1 18 48,597 40,006 9,939 654 4,477 216 10.................... 223,467 118,903 86,339 5 ,907 1 ,150 15,005 724 1 ,758 104,564 48,465 40,481 9,957 731 4,461 239 17.................... 228,950 123,583 87,930 5,498 4,866 15,088 742 1 ,876 105,367 48,382 41,199 10,059 764 4,476 260 24.................... 224,645 1 18,388 85,195 5 ,506 4,926 13,626 681 1 ,810 106,257 48,315 41 ,858 10,279 766 4,545 260 31.................... 228,784 122’373 87,330 6,247 3,774 14,582 797 1 ,775 106,41 1 48,274 41,972 10,413 785 4,454 271 Aug. 7.................... 225,626 118,470 84,019 5,775 4,205 14,867 702 1 ,718 107,156 48,288 42,467 10,547 807 4,547 255 14................... 226,486 118.877 86,384 5,671 2,885 14,83! 639 1 ,710 107,609 48,283 42,653 10,737 842 4,586 262 21.................... 225,520 117,473 84,544 5,345 4,342 14,402 658 1 ,638 108,047 48,296 42,907 10,874 861 4,576 260 2R.................... 225,263 117,004 84,929 5,516 3,055 13,635 725 1 ,638 108,259 48,269 43,042 10,969 880 4,567 268 New York City 1967 Aug. 2.................... 48,928 29,835 19,239 357 909 3,811 530 1 ,089 19,093 4,723 9,001 972 726 3,464 126 9.................... 47,786 28,607 18,179 306 598 3,718 496 1 ,068 19,179 4,724 9,071 1 ,003 728 3,447 136 16.................... 47,370 28,307 18,814 340 449 3,898 501 1 ,055 19,063 4,725 8,950 1 ,040 726 3,413 139 23................... 47,405 28,282 18,328 301 501 3,848 473 1 ,024 19,123 4,725 9,035 1,018 731 3,396 146 30.................... 47,999 28,826 18,684 366 566 3,707 487 1 ,036 19,173 4,722 9,062 1 ,063 716 3,390 151 1968 July 3.................... 52,575 34,924 21,111 455 721 5,446 581 1 ,342 17,651 4,631 8,630 1 ,006 358 2,828 109 to.................... 51,142 33.316 20,454 504 77 5,009 578 1 ,236 17,826 4,614 8,764 1 ,006 426 2,818 109 17.................... 53,417 35,279 20,914 41 2 1 ,568 5,284 588 I ,357 18,138 4,603 8,968 1,060 447 2,850 121 24.................... 51,435 33,094 20,183 478 1 ,525 4,695 521 1 ,300 18,34! 4,598 9,123 1,096 443 2,868 126 31.................... 53,203 35,055 21,053 447 1,102 5,082 642 1 ,262 18,148 4,594 8,979 1,114 457 2,768 149 Aug. 7.................... 51 ,179 32,930 19,959 349 1 .088 4,986 541 1 ,218 !8,249 4,590 9,019 1,122 467 2,822 143 14.................... 50,660 32,315 20,125 434 605 4,972 478 1,177 18,345 4,589 9,026 1,163 500 2,831 150 21 . .................. 50,300 31,894 19,815 333 1 ,068 4,682 499 1,108 18,406 4,584 9,080 1,168 514 2,821 153 28................... 51,144 32,733 20,074 437 703 4,456 573 1,118 18,411 4,577 9,089 1,182 518 2,813 155 Outside New York City 1967 Aug. 2................... 164,263 82,625 61,792 5,732 2,549 9,634 133 492 81,638 43,113 27,603 8,746 368 l ,598 91 9.................... 161,752 79,850 60,231 5,259 2,191 9,452 146 488 81,902 43,175 27,800 8,748 371 1 ,595 89 16.................... 163,514 81,418 62,313 5,01 1 1 ,685 9,705 134 487 82,096 43,183 27,995 8,698 379 1 ,619 96 23.................... 160,789 78,396 60,174 4,801 1 ,978 8,945 134 487 82,393 43,206 28,212 8,725 381 1 ,637 108 30.................... 161 ,514 78,860 60,473 5,137 1 ,756 8,936 129 474 82,654 43,235 28,387 8,778 383 1 ,634 111 1968 July 3.................... 174,973 88,506 66,887 5,747 2,072 10,391 147 522 86,467 43,966 31,376 8,933 296 1 ,649 107 10.................... 172,325 85,587 65,885 5,403 1 ,073 9,996 146 522 86,738 43,851 31,717 8,951 305 1 ,643 130 17.................... 175,533 88,304 67,016 5,086 3,298 9,804 154 519 87,229 43,779 32,231 8,999 317 1 ,626 139 24.................... 173,210 85,294 65,012 5,028 3,401 8,931 160 510 87,916 43,717 32,735 9,183 323 1 ,677 134 31................... 175,581 87,318 66,277 5,800 2,672 9,500 155 513 88,263 43,680 32,993 9,299 328 1,686 122 Aug. 7.................... 174,447 85,540 64,060 5,426 3,117 9,881 161 500 88,907 43,698 33,448 9,425 340 1 ,725 112 14................... 175,826 86,562 66,259 5,'237 2,280 9,859 161 533 89,264 43,694 33,627 9,574 342 1,755 112 21.................... 175,220 85,579 64.729 5,012 3,274 9,720 159 530 89,641 43,712 33,827 9,706 347 1,755 107 28.................... 174,119 84,271 64,855 5,079 2,352 9,179 152 520 89,848 43,692 33,953 9,787 362 1 ,754 103 For notes see opposite page. 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SEPTEMBER 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 adjusted8 and in­ adjusted^ Total Issued Issued vestments8 issued to IPC’s to others Large banks— Total 1967 475 6,216 11 ,189 20,020 251,091 137,270 195,538 74,349 20,114 12,817 7,297 ...................Aug. 2 214 6,199 I 1 ,617 20,041 247,609 136,365 194,057 72,598 20,311 12,946 7,365 ........................... 9 214 6,396 1 1 ,989 19,992 249,475 136,444 194,224 72,863 20,325 12,915 7,410 .....................16 20 6,026 12,123 19,987 246,350 135,535 193,355 71,921 20,567 13,129 7 438 ............................23 14 5,994 12,094 20,013 247,628 135,488 194,809 73,321 20,742 13’247 7,495 ............................30 1968 327 10,094 15,883 21,285 275,137 148,695 208,778 76,164 19,5.38 12,349 7,189 ..................July 3 251 9,205 15,853 21,287 270,063 148,184 208,087 77,245 19/921 12,672 7 349 ............\ .10 800 8,972 15,536 21,236 275 394 148,837 210,855 76,812 20,649 1 3 337 7,412 ............................17 613 8,568 15,318 21,249 270,393 148,920 210,695 77,042 21 380 13,676 7,604 ............................24 594 8,799 15,421 21,417 275,015 149,811 211,942 78,839 21,450 13,698 7,752 ............................31 397 9,760 16,027 21,470 273,280 149,411 21 1,828 75,898 21,931 14,099 7,832 186 10,777 16,244 21,436 275,129 149,444 212,283 75,918 22,'177 14321 7,956 .......................\ 14 334 9,978 16,270 21'423 273,525 149,304 213,127 75,659 22,250 14,294 7,956 ............................21 428 9,867 16,523 21 ,'450 273,531 148,615 212344 76,793 22,304 14380 8,024 ............................28 New York City 1967 182 1 ,862 5,391 5,479 61,842 34 361 45,162 17,334 7,269 4,742 2,527 16 1 ,888 5,764 5,485 60,939 33,917 44,394 16,333 7,355 4'796 2,559 ........................... 9 40 2'173 5,927 5376 60,986 34,003 44,551 16,485 7 346 4,682 2,564 ............................16 I ’736 6,21 1 5,470 60,822 33 332 43,995 16 J8I 7,334 4,755 2,579 ............................23 1 ,944 6,129 5,462 61 ,534 33,452 44,594 16,589 7,339 4,'767 2372 ............................30 1968 2,859 8,339 5,784 69,557 37,048 47,729 16,812 5,941 4,026 I ,915 ..................July 3 1 5 2,915 8’445 5,’779 68,296 36,950 47,608 16,949 6,112 4,178 1 ,934 ............................ 10 100 2,773 8,112 5,767 70,169 37326 48,694 16,876 6,419 4,380 2,0.39 .............................17 87 3,076 7,978 5,765 68,341 37’434 48,837 16,966 6,570 4,501 2,069 ............................24 3,261 7,817 5,828 70,109 37,847 49,599 17,626 6,459 4,336 2 123 ............................31 131 3,218 8,235 5,861 68,624 37,351 49,206 16,503 6,533 4,414 2,119 15 4,317 8,341 5,859 69,192 37,048 49,099 15,941 6,586 4,432 2,154 .......................“ .14 116 3,380 8,458 5,847 68,1 di 37,218 49,486 16,290 6,538 4,406 2,132 ............................21 3 3,817 8,626 5336 69,426 36,880 49'322 16,556 6,530 4’405 2,125 ............................28 Outside New York City 1967 293 4,354 5,798 14,541 189,249 102,809 150,376 57,015 12,845 8,075 4,770 198 4,31 1 5,853 14,556 186,670 102,448 149,663 56,265 12,956 8,150 4,806 ........................... 9 174 4,223 6,062 14,516 188,489 102,441 149,673 56,378 13,079 8,233 4,846 ............................16 20 4,290 5,912 14,517 185,528 102,103 149,360 55,740 13,233 8,374 4,859 ............................23 14 4,050 5,965 14,551 186,094 102336 150,215 56,732 13,403 8,480 4,923 ............................30 1968 327 7,235 7,544 15,501 205,580 111,647 161,049 59,352 13,597 8,323 5,274 ..................July 3 236 6,290 7,408 15,'508 201,767 111,234 160,479 60,296 13,809 8,494 5,315 ...........................10 700 6,199 7,424 15,469 205,325 111,611 162,161 59,936 14,230 8,857 5’373 ............................17 526 5,492 7,340 15,484 202,052 111,486 161,858 60,076 14,710 9,175 5,535 ............................24 594 5,538 7,604 15,589 204,906 111,964 162,343 61,213 14,991 9,362 5,629 ............................31 266 6,542 7,792 15,609 204,656 ' 112,060 162,622 59,395 15,398 9,685 5,713 171 6360 7’903 15,577 205,937 112,396 163,184 59,977 15,59! 9389 5’802 ............................14 218 6,598 7,812 15,576 205 324 112,086 163,641 59,369 15,7(2 9,888 5,824 ............... 21 425 6 ,’050 7,897 15,614 204,105 111 ,735 163,422 60,237 15,774 9,875 5,899 ................. .28 i After deduction of valuation reserves. 2 Individual items shown gross. 1 o Certificates of deposit issued in denominations of $100,000 or more. 3 Includes short-term notes and bills (less than 1 year to maturity) issued by States and political subdivisions. 4 Federal agencies only. Note.—Beginning June 29, 1966, coverage of series was changed from 5 Includes certified and officers’ checks, not shown separately. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ 6 Deposits of foreign governments and official institutions, central cial Banks (earlier figures for 1966 are comparable with the new series). banks, and international institutions. Also beginning June 29, 1966, detailed breakdown is shown of “All other 7 Includes U.S. Government and postal savings not shown separately. loans,” of “Other securities,” and of ownership of time certificates of 8 Exclusive of loans to domestic commercial banks. deposit in denominations of $100,000 or more. For description of revisions 9 All demand deposits except U.S. Government and domestic com­ see Aug. 1966 Bulletin, pp. 1137-40. mercial banks, less cash items in process of collection. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-30 BUSINESS' LOANS OF BANKS □ SEPTEMBER 1968 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during—■ Industry 1968 1968 1968 1967 1968 1967 Aug. Aug. Aug. Aug. July 1st 2nd 28 21 14 7 31 Aug. July June 11 1 IV half half Durable goods manufacturing: Primary metals............................. 2,046 2,049 2,044 2,028 2,009 37 62 190 309 262 184 571 287 Machinery....................................... 4,473 4,528 4,544 4,590 4,735 -262 159 238 46 240 -248 286 -630 Transportation equipment.............. 1 ,71 1 1 ,714 1 ,789 1 ,816 1 ,823 -112 -33 102 36 8 -113 44 -136 Other fabricated metal products. . . 1 ,885 1 ,893 1 ,91 1 1 ,913 1 ,943 -58 37 74 150 60 -103 210 -281 Other durable goods....................... 2,236 2,233 2.245 2,237 2,250 -14 40 117 194 20 -152 214 -142 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,133 2,174 2,061 2,096 2,079 54 -158 51 -227 -294 587 -521 615 Textiles, apparel, and leather.......... 2,407 2,399 2,404 2,354 2,318 89 42 119 202 325 -385 527 -410 Petroleum refining............................ 1 ,537 1 ,530 1 ,531 1 ,537 1 ,539 -2 53 63 45 -113 91 -68 -113 Chemicals and rubber..................... 2,165 2,217 2,240 2,261 2,271 -106 -241 39 55 116 29 171 -83 Other nondurable goods................. 1 .807 1,813 1 ,812 1 .803 1 ,813 -6 13 55 58 14 -35 72 95 Mining, including crude petroleum and natural gas............................. 4,619 4,665 4,679 4,678 4,688 -69 -54 15 61 497 384 558 164 Trade: Commodity dealers................. N ,055 1 ,071 1,103 1,118 1 ,073 -22 -35 -49 -222 -275 501 -497 679 Other wholesale....................... 3,138 3,122 3,140 3,119 3.1 66 -28 9 23 91 9 162 100 96 Retail........................................ 3,559 3,659 3.706 3,780 3,776 -217 46 70 232 -28 -11 204 6 Transportation.................................... 4,923 4,938 4,918 4,919 4,972 -49 5 167 405 155 333 560 428 Communication................................... 937 966 970 1 ,004 1 ,012 -75 -89 125 174 -72 9 102 4 Other public utilities............................ 2,423 2,484 2,437 2,386 2,370 53 161 259 212 -419 1 10 -207 258 Construction......................................... 2,818 2,815 2,802 2,777 2,775 43 78 221 42 -58 263 -103 Services................................................. 5,490 5,499 5,523 5,531 5,507 -17 -36 162 374 173 304 547 221 All other domestic loans..................... r7.090 7,176 7,197 7,248 7,293 -148 51 163 459 100 224 559 356 Bankers’ acceptances................. 805 797 826 911 845 -40 34 -7 -272 - 120 301 -392 554 Foreign commercial and industrial loans............................................. 2,558 2,564 2,541 2,528 2,557 I -34 3 -101 -48 -15 -149 -112 Total classified loans........................... r61.815 62,306 62,423 62,634 62,814 -948 33 2,057 2,502 652 2,099 3,154 1 ,753 Total commercial and industrial loans. r68,134 68,642 68,787 69,000 69.181 -1 ,058 1 2,126 2.667 695 2,446 3,362 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 Aug. July June May Apr. Mar. Feb. Jan. Dec. 1st 28 31 26 29 24 27 28 31 27 II 1 IV in half Durable goods manufactur­ ing: Primary metals................... 1 ,426 1 ,393 1 ,339 1,199 1,185 1,112 1,027 908 874 227 238 (82 61 465 Machinery......................... 2,294 2,395 2,279 2,188 2,231 2,154 2,064 2,067 2,001 125 153 38 -156 278 Transportation equipment. 910 902 908 944 953 889 849 859 888 19 1 52 1 20 Other fabricated metal products...................... 798 81 1 759 733 696 692 670 667 675 67 17 4 6 84 Other durable goods.......... 1 ,003 1 ,041 1 ,028 1 ,003 991 994 984 1 ,006 1 ,017 34 -23 1 1 -27 ll Nondurable goods manufac­ turing: Food, liquor, and tobacco. 823 804 821 817 813 876 865 818 758 -55 118 30 37 63 Textiles, apparel, and leather......................... 575 556 566 556 562 555 524 485 465 11 90 44 -6 101 Petroleum refining............. I .235 1 .270 1 ,226 1,176 1,152 1,164 1,195 1 ,200 1 ,256 62 -92 102 -124 -30 Chemicals and rubber....... 1 ,462 1 ,516 1 ,619 1 ,583 1 ,647 1 ,613 1 ,544 1,538 1 ,532 6 81 10 53 87 Other nondurable goods. . 1 ,074 1,073 I ,051 I ,062 1,072 I ,061 1,049 1,048 1 ,070 -10 -9 44 102 -19 Mining, including crude pe­ troleum and natural gas... 3.984 4,042 4,121 4,152 4,233 4,047 4,014 3,996 3,571 74 476 385 -197 550 Trade: Commodity dealers.. 1 14 1 15 113 111 110 115 103 III 107 -2 8 5 3 6 Other wholesale........ 603 608 634 637 624 585 588 575 576 49 9 61 22 58 Retail......................... 1,106 1,152 1 ,144 1,105 1,119 1 ,098 1 ,093 1,111 1 ,083 46 15 13 8 61 Transportation....................... 3,688 3,688 3,703 3,610 3,503 3,503 3,432 3,426 3,343 200 160 236 106 360 Communication................... 452 453 446 432 404 412 409 419 443 34 -31 4 -1 3 Other public utilities........ 1 ,001 928 815 749 731 710 741 717 715 105 -5 74 -20 100 Construction.......................... 774 779 769 737 737 706 680 686 682 63 24 -15 87 Services.................................. 2,329 2,324 2,303 2,268 2,243 2,229 2,187 2,163 2,121 74 108 119 -49 182 All other domestic loans. . . . 903 942 905 864 877 879 844 871 873 26 6 36 6 32 Foreign commercial and in­ dustrial loans.................. 1 ,901 ri ,9(8 (,934 1,953 1,971 1,976 l,98i 2,dO9 2,027 -42 -51 -59 -63 -93 Total loans............................. 28,455 r28.7l0 28,483 r27,879 27,854^27,370 r26,843 26,680 26,077 1,113 d ,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 1 year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 21.4 10.8 32.3 7.8 47.6 4.9 6.51-6.99..................................... 23.0 10.5 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.................................... 1 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. I 1 . 5 2.3 0.9 0.9 0.1 8,00.............................................. 3.2 LI 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 Centra!....................... 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 4i/i 1967—Jan. 26-27 51/2-55/4 Business Loans was revised. For description of revised series see pp. 721­ 1965—Dec. 6 5 Mar. 27 5/2 27 of the May 1967 Bulletin. 1966—Mar. 10 5/2 Nov. 20 6 Bank prime rate was 5 per cent during the period Jan. 1, 1960-Aug. June 29 5% 1968—Apr. 19 614 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 6 s - 2 90 days 1 n R ew at e is o su n e M y a ie r l k d et n R ew at e 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 4.32! 4.30 4.630 4.61 4.71 4.84 5.07 1967—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 5.71 July................. 6. 19 6,02 5.85 6.02 5.382 5.31 5.480 5,41 5.40 5.68 5,44 Aug................. 5,88 5.74 5.66 6.03 5.095 5.08 5,224 5.23 5.15 5.41 5.32 Week ending— 1968—Aug. 3.......... 5,95 5.83 5.70 6.05 5.190 5.08 5.287 5.25 5.14 5.46 5.28 “ 10.......... 5.88 5.77 5,70 6.11 4.905 4.96 5,099 5.16 5. 10 5.42 5.29 17 5.88 5.75 5,75 6,13 5,084 5.11 5.273 5.29 5,21 5.47 5.35 24.......... 5.88 5.75 5.63 6,05 5.123 5.15 5.220 5.24 5.15 5.39 5.36 31.......... 5.88 5.70 5,63 5.93 5.173 5.18 5.242 5.26 5.17 5.39 5.33 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 INTEREST RATES □ SEPTEMBER 1968 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 i (long­ term) Total t 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 ­ 1960. . ........................................... 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--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 5.6! 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 ’5.72 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 June 5.23 4.59 4.21 5.06 6.63 6.28 7,07 6.54 6.88 6.60 5.90 3.00 July. 5.09 4.45 4.12 4.91 6.57 6.24 6,98 6.50 6.82 6,53 5.74 3.00 5 04 4.29 4.00 4.72 6.37 6.02 6,82 6.26 6,72 6.30 5.59 3.09 Week ending — 1968—Mav 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 June 1.............................. 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 77 5.1 8 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 July 6............................... 5 12 4.54 4.18 4.96 6.61 6.27 7.04 6,55 6.85 6.58 5.83 2.98 13............................... 5.10 4.54 4.1 8 4.96 6.61 6.27 7.03 6.54 6.85 6,57 5.81 2.94 20 ............................. 5.14 4.41 4.10 4.90 6.58 6.26 6.99 6.53 6.83 6.54 5.79 2.96 27............................... 5.03 4.31 4.00 4.80 6.54 6.22 6.95 6.45 6.81 6,48 5.65 3.03 Aug. 1 4.99 4.22 3.90 4.73 6.46 6.14 6.88 6.37 6.75 6.41 5.64 3,10 10.............................. 4.99 4. 17 3.80 4.68 6.40 6.07 6.83 6.30 6,73 6.33 5.60 3.12 17.............................. 5 06 4.29 4.00 4.70 6.36 6,00 6.82 6.24 6,73 6.29 5.57 3.08 24.............................. 5.09 4.32 4.05 4.70 6.34 5.98 6.80 6.23 6,70 6.27 5.58 3.08 31.............................. 5.06 4.46 4.25 4.80 6.33 5.97 6.79 6.23 6,70 6.25 5.62 3.09 10-12 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

SEPTEMBER 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= 10) (Dec. 31, 1965=50) Stock Ex­ change U.S. , total Govt, State Cor­ Indus­ Rail­ Public Indus­ Trans­ Fi­ index 1 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 1967.......................... 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—-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 Apr 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 July......... 73.99 95.3 76.1 100.30 109.16 51 .01 67.55 56.41 59.12 51.59 44,69 68.90 29.18 14,266 6,600 74.48 95.9 78.1 98.1 1 106.77 48,80 66.60 55.04 57,59 49.01 44.09 68.19 28,38 10,718 4,778 Week ending— Aug. 3........ 74.96 97.6 77.1 97.33 105.84 48.45 66,57 54.54 57,01 48.69 44.15 66,11 27.71 11,361 4,558 10........ 75.05 98.0 77.8 97.04 105.54 47.89 66.41 54.47 56.94 48.39 43.98 66.91 27.93 9,952 4,050 17........ 74.30 96.1 77.9 98.32 107.01 49.01 66.68 55.15 57.69 49.40 44.15 68,57 28,46 11,455 5,013 24 73.92 95.5 78.5 98.84 107.57 49.41 66.92 55.46 58.05 49.52 44.25 69.33 28.74 11,399 5,490 31........ 74.28 94.1 78.3 98.84 107.63 49.31 66.46 55,41 58.07 49.13 43.99 69.03 28.71 9,649 4,628 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^-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 87 657 1967—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...... 6.77 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 6.70 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..... 6.84 6.95 7.15 6.70 6.90 7.10 7.00 7.35 7.45 7 20 June........ 7.52 7.03 7.12 7.25 7.05 7,25 7.15 7.10 7.40 7,50 7 30 July.......... 7.42 i>7.18 "7 24 7 30 7 10 7.40 7.20 7.15 7.45 7 55 7 35 Aug.......... 7.35 7.30 7.10 7.40 7.25 7,05 7,40 7.50 7'. 35 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

A-34 STOCK MARKET CREDIT □ SEPTEMBER 1968 STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In millions 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 stricted (mil­ i 2 ances ances brokers period lions of dol­ 1967—juiy................ 5 ,480 2,200 7,680 2,341 4,295 30 per 30-39 40-49 50-59 60 per lars) Aug................ 5,650 2'260 7,910 6,677 2,281 4 >96 cent per per per cent Sept. 5,790 2,340 8,130 6,944 2 401 4,543 or less cent cent cent or more Oct................. 6,010 2’420 8>3O 7’111 2 513 4,598 Nov................ 6^050 2 >40 8 >90 7 >00 2,500 4>00 Dec................ 6,300 2,460 8,760 7,948 2,763 5,183 1967 July. . . 23.5 47.1 9.1 4.2 16.0 10,680 Aug... . 7.2 62.7 9.7 4.5 15.9 10,840 1968—Jan................. 6,170 2,430 8,600 7,797 2,942 4,855 Sept.... 16.8 52,6 8.5 4.4 17.7 11,300 Feb................. 6,150 2,420 8 >70 7>19 2 >78 4’641 Oct.. . . 8.0 58.4 9.9 5.0 18.7 11,550 Mar................ 6,190 2 >70 8 >60 7 >48 2,692 4>56 Nov.... 10.7 56.4 9.7 5.1 18.2 11,360 Apr................ 6,430 2,350 8 >80 7 >01 2>79 4>22 Dec.... 19.8 47.9 9.1 4.6 18.7 12,020 May.............. 6,640 2 >60 9,000 8 >68 3,064 5 >04 June............... r6,690 2,410 r9,100 8 ,728 3,293 5,435 1968-Jan.. . . 5.3 60.3 11.7 4.6 10.2 11,940 July"............. 6,450 2,410 8,860 8'890 3 >45 5 >45 Feb.... 4.1 56.8 14.4 5.3 19.4 11,870 Mar.... 5.9 53.3 15.5 6.1 19.2 11,700 Apr.... 19.8 46.1 10.8 4.7 18.7 12,270 1 End of month data. Total amount of credit extended by member firms May... 21.9 45.0 9.4 4.9 18.8 12,820 of the N.Y. Stock Exchange tn margin accounts, estimated from reports by a sample of 38 firms. 2 Figures are for last Wed. of month for large commercial banks re­ 20 or 60 or porting weekly and represent loans made to others than brokers or dealers less 20-29 30-39 40-49 50-59 more for the purpose of purchasing or carrying securities. Excludes loans col­ lateralized by obligations of the U.S. Govt. Note.—Customers’ net debit and free credit balances are end-of-month June.. '0.8 '22.1 r47.3 8.5 4.0 '17.3 '12,590 edger balances as reported to the N.Y. Stock Exchange by all member firms July”. 0.7 20.9 45.8 10.1 4.7 17.8 11,950 that carry margin accounts. They exclude balances carried for other member firms of national securities exchanges as well as balances of the reporting firm and of its general partners. Net debit balances are total Note.—Adjusted debt is computed in accordance with requirements set debt owed by those customers whose combined accounts net to a debit. forth in Regulation T and often differs from the same customer’s net debit Free credit balances are in accounts of customers with no unfulfilled com­ balance mainly because of the inclusion of special miscellaneous accounts mitments to the broker and are subject to withdrawal on demand. Net in adjusted debt. Collateral in the margin accounts covered by these data credit extended by brokers is the difference between customers’ net debit now consists exclusively of stocks listed on a national securities exchange. and free credit balances since the latter are available for the brokers’ use Unrestricted accounts are those in which adjusted debt does not exceed the until withdrawn. loan value of collateral (30 per cent of current market value during the time period covered in this table); accounts in all classes with higher ratios arc restricted. Data beginning June 8, 1968, will show as “restricted” accounts where debt exceeds 20 per cent of collateral values. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (Per cent of total debt, unless otherwise indicated) Total Equity class (per cent) debt (mil­ End of lions SPECIAL MISCELLANEOUS ACCOUNT BALANCES period of 70 or Under AT BROKERS, BY EQUITY STATUS OF ACCOUNTS dol­ more 60-69 50-59 40-40 40 lars) 1 (Per cent of total, unless otherwise indicated) 1967—July.. 5,480 54.0 24.5 9.0 3.8 8.7 Equity class of accounts Aug... 5,650 46.0 32.2 9.4 4.2 8.2 Net in debit status Total Sept.. 5,790 52. 1 25,6 8.8 3.9 9.6 End of period credit balance Oct.. . 6,010 45.2 30,4 10.1 4.6 9.6 status 60 per cent Less than (millions Nov. . 6,050 43,8 31.8 9.7 4.9 9.9 or more 60 per cent of dollars) Dec. . 6,300 50.6 25.8 9.0 4.1 10.5 1968—Jan... 6,170 40,6 35.4 9.5 4.4 10.0 1967—July...................... 46.9 50.4 2.7 5,370 Feb... 6,150 33,8 38.3 12.0 5.2 10.7 Aug........ 47.7 49.3 3.0 5,340 Mar.. 6,190 32.1 37.6 14. 1 5.3 11.0 Sept...................... 50.7 46.6 2.7 5,610 Apr. . 6,430 48.7 26.4 10.2 4.3 10.4 Oct....................... 47.8 49.0 3.2 5,680 May.. 6,640 51.0 24.9 8.6 4.4 11.0 Nov................. 48.8 47.8 3.4 5,490 Dec...................... 50.0 47.0 3.0 5,850 80 or Under 1968—Jan....................... 50.8 45.6 3.6 6,060 more 70-79 60-69 50-59 40-49 40 Feb....................... 51.1 45.0 3.8 6,080 Mar...................... 52.5 42.9 4.5 5,820 Apr....................... 46.3 47.9 5.8 6,030 June . '■6,690 14.9 33.2 28.8 8.2 4.3 10.6 May..................... 49.6 46.2 4.1 5,370 July”. 6,450 15.4 28.1 30.7 9.5 4.9 1 1.6 J une..................... 50.0 45.7 4.2 '6,150 July..................... 51 .7 44.4 3.9 5,940 1 See footnote I to table above. Note.—Special miscellaneous accounts contain credit balances that Note.—-Each customer's equity in his collateral (market value of col­ may bo used by customers as the margin deposit required for additional lateral less net debit balance) is expressed as a percentage of current col­ purchases. Balances may arise as transfers based on loan values of other lateral value. When data become available for period beginning June 8, collateral in the customer’s margin account or deposits of cash (usually 1968, table will show separately equity class of 80 per cent or more, re­ sales proceeds) occur. flecting the new level of initial margin requirements. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 Banks Im­ Ex­ shipped between Total th P r la o c u e g d h P di l r a e c c e t d ­ Total Others p in or to ts p fr o o r m ts D e o x ll ­ ar points in— dealers 1 ly 2 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 S n ta i t t e e s d U S n t i a t t e e d s change U S n ta i t t e e s d c F o o u r n e t i r g i n 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 3,385 1,671 1,301 370 94 122 1,498 667 999 111 43 1,565 1965..................... 9,058 1 ,903 7’155 3,392 1.223 1,094 129 187 144 1,837 792 974 27 35 1,564 1966...................... 13^279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 103 80 1,595 1967—July............ 17.044 4,976 12,068 4,1 16 1,549 1,252 297 78 324 2,165 974 1,040 65 41 1,996 16’816 4,979 11 837 4,103 1,584 1,195 389 65 252 2,203 1 ,020 989 70 75 1,949 Sept....... 16,220 5,124 11,096 4,146 1 ,635 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 4,218 1,878 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 1 ,447 459 164 156 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............ 17,813 5'493 12'320 4,266 1,808 1 ,329 479 56 117 2,285 1 ,091 t ,029 33 134 I ,979 Mar........... 18^487 5’,832 12^655 4,336 1,884 1,395 490 90 100 2,262 1,125 1,032 36 117 2,027 Apr. 17,509 5 '930 1 I 579 4,430 1,778 1,409 369 87 118 2,447 1 ,229 1,025 18 116 2,042 May.......... 18'417 5’761 12,656 4,359 1,624 1 ,282 342 56 132 2,547 1 ,267 1,007 17 77 1,992 June...... 18’798 5 '822 12 976 4,286 ’•1,677 r 1,366 311 134 112 r2,364 1 ,338 944 23 55 1 ,925 July........... 19,746 6'270 13 ^476 4,330 1,751 1 ,410 341 99 128 2,352 1,390 917 42 54 1,927 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— Total General Mortgage loan End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n c a d a te l Co r a a n r t p d e o ­ Cash O as t s h e e ts r g l e i a a t n i n b e e d i s r l a i­ l D i e ts p o 2 s­ l O ia t t i b e h i s e li r ­ r c e o s a u e c r n ­ v ts e' commitments J govt. other 1 reserve accts. Number Amount 1941............................. 4,787 89 3,592 86 829 689 11,772 10,503 38 1,231 1945............................. 4'202 62 10’650 I,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 3371 61’855 1 654 1962............................. 32,056 602 6,107 527 5'177 956 695 46'121 41,336 828 3,957 114,985 2,548 1963............................. 36’007 607 5,863 440 5'074 912 799 49’702 44^606 943 4'153 104,326 2 249 1964............................. 40^328 739 5,791 391 5'099 1,004 886 54^238 48,849 989 4'400 135,992 2,’820 1965 ............................. 44’433 862 5,485 320 5'170 1'017 944 58,232 52'443 1,124 4'665 120,476 2'697 1966........................ 47’193 I ,078 4'764 251 5'719 '953 1 ,024 60'982 55'006 1'114 4'863 88,808 2,010 1967—July.................. 49,010 1,144 4,396 246 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 1 ,732 4'969 n.a. 2’592 Sept................... 49 .’5 57 1 ’152 4,406 243 8'054 ’999 1,147 65’559 59,066 1 325 4,967 n.a. 2’724 Oct............. 49,827 1 169 4,299 228 8,080 959 1,134 65'696 59,257 I '489 4,950 n.a. 2’710 Nov................... 50 046 1 j243 4 397 222 8 107 915 1 '130 66,061 59'462 1,597 5'002 2 684 Dec............ 50^311 1 J 203 4 319 219 9,320 993 1 ,138 66,365 60,121 1 360 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 2,416 Feb.................... 50’902 1 ,334 4 405 220 8’672 903 1,156 67'592 60 945 I ,575 5 371 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................... 51,199 ( ,'267 4303 221 9,113 871 1,190 68,165 61,554 I ,553 5 ’058 2 561 May.................. 51 ,'402 1 ’474 4 374 214 9,213 877 1 ’215 68,768 61.926 1 ,732 5^110 n.a. 2*669 Juner................ 51,621 1 ’387 4’235 206 9,403 951 1 ,230 69'034 62,411 1 ,503 5’120 2 709 July”................. 51,867 1 385 4,213 222 9’599 924 1 ,218 69,427 62,607 1 ,706 5 J15 n.a. 2^79 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. and beginning with Aug. 1967. June, 1968 include one savings and loan that converted to a mutual sav­ ings bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-36 SAVINGS INSTITUTIONS □ SEPTEMBER 1968 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets 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—Juner........................... 171,922 10,526 4,593 3,016 2,917 71,394 63,194 8,200 66,181 5,020 9,671 9,130 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 65,089 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 66,66! 9,426 68,123 5,303 10,474 9,931 May............................. 181 ,234 10,584 4,581 3,018 2,985 76,428 66,838 9,590 68,339 5,337 10,599 9,947 June 11.......................... 182,110 10,360 4,365 3,002 2,993 76,987 67,234 9,753 68,508 5,366 10,729 10,160 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end , . > figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E p n er d i o o d f M ga o ge rt s ­ s G e U c o . u v S r t . i , ­ Cash Other1 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 a n m n ts i 4 t­ ties profits 1941 4,578 107 344 775 6,049 4,682 475 256 6.16 1945 .................. 5,376 2,420 450 356 8,747 7,365 644 336 4()2 .................. 1960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,230 1963 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,614 1964 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1 ,729 2,590 1965. 1 10,306 7,414 3,900 7,960 129,580 110,385 8,704 6.444 2,198 1,849 2,751 1966. 114,447 7,771 3,362 8,416 133,996 114,009 9,102 7,464 1,272 2,149 1 ,517 1967--July.......... 117,676 8,378 3,412 9,169 138,635 120,031 9,270 4,456 2,019 2,859 3,420 Aug.......... 118,674 8,857 3,127 9,221 139,879 120,677 9,265 4,399 2,130 3,408 3,443 Sept......... 119,529 9,017 3,078 9,158 140,782 121 ,870 9,255 4,382 2,158 3,117 3,337 Oct........... 120,362 9,171 3,040 9,217 141,790 122,365 9,256 4,373 2,213 3,583 3,310 Nov.......... 121,127 9,424 3,068 9,352 142,971 122,947 9,248 4,455 2,241 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 3,840 Apr.......... 124,305 9,824 2,769 9,325 146,223 125,698 9,552 4.807 2,461 3,705 4,051 May........ 125,262 10,164 2,726 9,641 147,793 126,455 9,547 4,956 2,586 4,249 3,993 June r. . . . 125,988 9,886 2,972 9,533 148,379 127,950 9,860 5,195 2,616 2,758 3,762 July p. . .. 126,720 9,781 2,399 9,471 148,371 127,349 9,851 5,280 2,560 3,331 3,901 1 Includes other loans, stock in the Federal home loan banks, other 4 Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding page) would include loans in process. and fixtures, 2 Before 1958, mortgages are net of mortgage-pledged shares. Asset Note.—Federal 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. and June 1968 reflect conversion of one savings and loan assn, to a mutual savings bank. Figures for June 1968 also reflect exclu­ sion of two savings and loan associations in process of liquidation. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 t a g l a 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 t n e e o d c m r s e ­ ­ s I m nv en es ts t­ p C a d o a n s e s d i ­ h t s B n a o o n n t d e d s s M po d b e s e e m i r ­ t s ­ C s a to p c it k al M l g o ( a A a o g n r ) e t s ­ D n t e a u ( o n L b r t e d e e ) s s n ­ c L a o t ( o o i t A v o a p e ) n e s s r ­ D t e u (L b re e ) s n­ c L o a d ( o A u n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e s t ­ Bo (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 I '531 173 2,707 1 ,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,'628 1963............. 4,784 1 ,906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 I ,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 I ,055 797 2,516 2,335 4,281 3,710 1966............. 6,'935 2,523 113 6,859 I ,'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 1 ,506 1 ,253 3,41 1 3'214 5,609 4 ,’904 1967—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 I ,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.. 4,719 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 June.. 4,889 2,832 103 4,701 1 ,400 1 ,426 6,387 5,887 1 ,454 1 ,207 3,940 3,477 5,973 5,2(4 July. . 4,988 2,463 86 4,700 1,189 1 ,406 6,432 5,550 1 ,454 I ,291 4,031 3,862 6,004 5,214 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, JULY 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: Aug. 26, 1968................. ...5% '499 Debentures: Aug, 20, 1968............ ...414 160 Sept. 25, 1968................. . .5,70 400 Aug. 10, 1971............... ...4‘/, 64 Oct. 21, 1968........... . .5,50 407 Oct. 25, 1968................. . .5.85 300 Sept. 10, 1971............... ...414 96 Dec. 23, 1968............... . .5.95 247 Feb. 25, 1969................. . .5.85 400 Feb. 10, 1972............... ...51/, 98 Jan. 20, 1969................. .4% 341 Apr. 25, 1969............. ...6(4 326 June 12, 1972............... ...4’4 100 Mar. 20, 1969............... ...4Y» 100 May 26, 1969................. .. .6 300 June 12, 1973............... ...4'4 146 Apr. 21, 1969............... ..5.60 250 Feb. 10, 1977............... ...41/2 198 July 15, 1969............... ...414 130 Bonds: July 15, 1969............... ...4% 60 Nov. 25, 1968.............. 300 Oct. 20, 1969......... . .....4’4 209 J M an a . r . 2 2 5 7 , , 1 1 9 9 6 6 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 > % 4 3 3 0 0 0 0 Banks (or cooperatives J F a e n b . . 2 2 0 0 , , 1 1 9 9 7 7 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 5 5 ' ’ 4 4 20 8 9 2 June 25, 1969............. ..6.30 550 Debentures: Feb. 20, 1970............... ..6.30 344 Sept. 25, 1969... . .......... 6 400 Aug. 1,1968........... . .5.65 364 Apr. 1, 1970............... ...3'4 83 Feb. 25, 1970................. . . .6 200 Oct. 1, 1968............... 223 Apr. 20, 1970............... ..6.20 362 Mar. 25, 1970................. . . .6 200 Nov. 4, 1968............... 21 6 July 20, 1970............... ■•.5'/, 85 Apr. 27, 1970................. .. .6 225 Dec. 2, 1968............... 264 July 20,1970................. . .6 241 Jan. 2, 1969............... ..6.20 224 May 1, 1971............... ...3'4 60 Federal National Mortgage Associa­ Sept. 15, 1972............... ...3’/s 109 tion—Secondary market opera­ Oct. 23, 1972............... ...5% 200 tions Federal intermediate credit hanks Feb. 20, 1973-78......... ...4'4 148 Debentures.' Feb. 20, 1974............... ...4'4 155 Discount notes................................ 1 ,950 S A e u n g t . . 3 1 . , 1 1 9 9 6 6 8 8. . . . . . . . . . . ...... ....... 5 .5 % .80 3 3 7 7 8 5 A Fe p b r . . 2 2 1 4 , , 1 1 9 9 7 7 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...4’4 2 1 0 2 0 3 Oct. 1J968............... . .5.95 423 July 20, 1976............... 150 Debentures: Nov, 4, 1968............... ...5’4 r495 Apr. 20, 1978............... ...514 150 Sept. 10 1968.............. ...5’/, 350 Dec. 2,1968............... . ..53/4 r460 Jan. 22, 1979............... . ..5 285 Apr. 10, 1969................. 88 Jan. 2, 1969............... . .5.95 452 May 12. 1969................. ...4’4 300 Feb. 3, 1969............... ..6.10 445 Tennessee Valley Authority June 10, 1969...................6.10 250 Mar. 3'1969............ ..6.45 428 Short-term notes.............. 275 July 10, 1969................. ...5'4 250 ... 6 % 409 Bonds: Dec. 12, 1969................. .6 550 Nov. 15, 1985............... .4.40 50 Apr. 10, 1970............... ...4% 142 July 1, 1986............... ...4’4 50 June 10, 1970................. ..6.60 119 Federal land banks Feb. 1, 1987............... ...4>4 45 Sept. 10, 1970................. ...41/, 400 Bonds: May 15, 1992..................5.70 70 Oct. 13, 1970....................5’4 400 Feb. 15, 1967-72......• ••4’/, 72 Nov., 1992........... ...6’4 60 Mar. 11, 1971............... .. .6 350 Oct. I, 1967-70......... ...41/2 75 Note—These securities are not guaranteed by the U.S. Govt.; see also note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-38 FEDERAL FINANCE □ SEPTEMBER 1968 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Derivation of U.S. Government cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net rects. or Change Less: Bu n d e g t et f T P u r l n u u d s s s : t g I L o n e v t s r t s a . : ­ 1 E r T e q o c u t t a s a l . l s 2 : Budget f T P u r l n u u d s s s : t 3 A m L d e e j n u s t s s s : t ^ ­ E p T q a o u y t a t a s l l s . : payts. (d d i e i r n b e c t t a I g n e v b n e y . 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 6 581 156,300 131,698 38,654 6,779 163,572 -7,272 14,967 7,248 -103 7,822 fiscal year—1965......... 93,072 31,047 4 303 119,699 96,507 29,637 3,749 122,395 -2,696 6,933 2,356 250 4,328 1966.......... 104,727 34,853 4 451 134,480 106,978 34,864 4,026 137,817 -3,337 6,710 3,562 530 2,618 1967.......... 115,849 44,640 6 056 153,596 125,718 34,510 5,085 155,142 -1,546 6,734 10,852 -314 -3,804 >1967.......... 149,555 158,362 -8,807 1 1 ,874 9,026 2,848< 1968"........ 153,485 .............. 178,892 -25,407 28,428 5,338 ......2..3...,.0..90 Half year: 1966—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......... 67,101 86,745 -19,644 20,630 1,658 18,9724 1968—Jan,-June". . . . ............. 86,409 92,147 — 5,738 7,797 3,680 ........4..,.1..1.8 Month: 1967—July................. ............ 8,819 14,513 -5,694 4,914 -122 ........5..,.0..3.6 ► 1968—Jan................... ............ 12,220 15,453 -3,233 3,044 -919 ........3...,.9..634 Feb.................. 12,087 14,383 -2,295 5,617 1,533 4,084 Mar............... 11,870 14,922 — 3,049 -1,776 — 428 — 1,348 Apr.................. 19,045 15,6/8 3,369 — 1,113 514 — 1,627 May................ 11,711 16,241 — 4,529 5,435 2,634 2,801 June".............. 19,476 15,470 4,006 -3,409 360 — 3,769 July................. 11,706 14,274 — 2,567 3,580 — 475 4,055 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 e o r 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 p d i r g l c 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 e a o a c r f k n . 3 e c t e i I n G n s e v o U c e v . . s t S 3 t , , . p d g d u i r i e r b o n e b l s c i t s c t T o r u H e t a e s s l i u d d r e y a T c u c r r e e o a r u ’ s s n ­ 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 e h e t e t s r Fiscal year—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 ► 1967........ -8,807 793 5,079 - 9,026 6,796 -517 -4,648 7,759 1,311 4,272 2,>764 ' 1968".. . . -25,407 2,736 5,952 -5,338 22,476 1 ,483 -1 ,065 6,694 1,074 4,113 1 ,507 Half year: 1966—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 (,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........ -19,644 562 1 ,752 -1,658 18,878 578 -713 7,046 1,123 4,329 1,5944 1968—Jan.-June" . . . -5 738 2,174 4,200 -3,680 3,597 906 -351 6,694 1,074 4,113 1 ,507 Month: 1967—July............ -5,694 5364 H7 122 4,797 -86 -208 7,551 1,340 4,552 1,659 >1968—Jan.................. -3,233 5877 1,434 919 1,610 -168 1,775 8,821 1,153 5,977 1.6914 Feb................. 295 5-564 100 -1,533 5,516 -313 1 ,539 10,359 1,197 7,601 1 ,561 Mar................. -3,049 51,473 287 428 -2,063 588 -3,512 6,847 581 4,727 1,539 Apr................. 369 5285 I ,357 -514 -2,470 432 1 ,595 8,442 1,035 5,372 2,035 May................ -4,529 s-422 120 -2,634 5,315 -215 -1,936 6,506 956 4,225 1 ,325 June". ....... 4,006 5533 902 -360 -4,311 582 188 6,694 1,074 4,113 1,507 July................ “2,567 5-1,020 68 475 3,512 66 401 7,095 1,113 4,787 1,195 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 he I i n l t d h d ­ lvid O ua th ! 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 . em Un p - l. E a g s n t i a f d t t e t C o u m s s ­ r m e a I p e n n n a t d . y t s ­ fu R n e d ­ s Other Fiscal year—1965... 119,699 36,840 16,820 26,131 14,793 5,921 3,782 22,138 17,833 3,817 2,746 1,478 2,097 6,030 2,686 1966... 134.480 42,811 18,486 30,834 13,398 5,888 4,037 25,527 21,243 3,773 3,094 1,811 2,303 7,256 3,472 1967... 153,596 50,521 18,850 34,918 14,1 14 6,156 4,652 32,857 28,700 3,657 3,014 1,972 2,743 9,582 4,189 ► 1967... 149,555 50,521 18,850 34,918 14,114 6,156 4,652 33,627 28,752 3,666 3,014 1 ,972 1,805 9,582 3164 1968?.. 153,485 57,268 20,951 29,889 14,313 n.a. 4.493 34,879 30,186 3,352 3,076 2,113 2,091 11,376 281 Half year: 1966—July-Dec... 65,681 24,641 3,983 12,045 6,762 3,105 2,313 13,789 1,969 1,569 1,258 1,017 I ,493 1,142 1,835 1967—Jan.-June.. 87,915 25,880 14,867 22,873 7,352 3,051 2,339 19,068 16,731 2,088 I ,756 955 I ,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... 67,101 27,192 4,150 11,345 7,146 3,344 2,253 15,085 13,098 1 ,337 1,350 1 ,034 957 1 ,263 1054 1968—Jan.-June.. "86,409 30,076 16,801 18,544 7,167 n.a, 2,240 19,794 17,088 2,015 1 ,726 1 ,079 1,134 10,113 201 Month: 1967—July........ 8,819 3,862 264 946 1 ,241 523 369 2,241 2,023 105 207 160 149 261 10 ► 1968—Jan............. 12,220 4,352 3,800 940 1,193 470 366 1 ,829 1 ,570 119 238 181 180 500 al« Feb............ 12,087 5,801 1,100 650 1 ,081 470 428 4,283 3,378 807 204 158 182 1,403 Mar........... 11,870 5,508 697 4,439 1,162 369 311 2,257 2,099 5! 235 168 175 2,849 78 Apr........... 19,045 4,045 7,687 4,339 1 ,21 1 574 348 3,456 3,192 150 450 191 201 2,561 26 May.......... 11,711 5,566 539 763 1,321 514 420 5,175 4,218 843 363 199 191 2,435 29 June?........ 19,476 4,804 2,977 7,412 1,199 n.a. 368 2,791 2,629 44 237 183 205 364 32 July........... I 1,706 4,560 605 2,259 1 ,459 n.a. 392 2,412 2,171 115 235 210 204 254 16 Cash payments to the public Period Na­ Nat­ Com­ Hous­ Total 5 t f i e d o n e n 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 u u r r r e a c ­ l e s t m r a a e n n r s d c p e . d c in e o g v m e & l l . . l H a w b e e o a lf l r a t , h r e & , E t d io u n ca­ e V ra e n t­ s In e t s e t r­ G g e o r e 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........ 158,362 70,092 4,650 5,423 4,377 2,132 7,446 2,285 40,084 4,047 6,898 10,280 2.454^ 1968?.... 178,892 *80,252 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 ► July—Dec..... 86,809 <>38,757 ..J...4 1968—Jan.-June?.. . 92,083 Ml,495 Month: 1967—July........... 14,513 *6,410 ► 1968—Jan................. 15,453 *7,164 .............4 ' Feb................ 14,383 '6,412 Mar............... 14,922 '6,363 Apr............... 15,678 *7,091 May.............. 16,241 *7,191 June?............ 15,470 *7,471 July............... 14,274 *5,895 > Data on new budget basis. Data for prior entries were derived on 3 Includes net transactions of Govt.-sponsored enterprises. basis of cash budget. 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

A-40 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 1968 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 End of period T gr o o t s a s l T gr o o t s a s l Marketable Con­ Nonmarketable Special debt 1 d d e ir b e t c t 2 Total v ib e l r e t­ Sav­ issues 6 Total Bills C c e a r t t e i s fi­ Notes Bonds 4 bonds Total 5 b i o n n g d s s & 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 23.6 120.6 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 I960—Dec..................................... 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec.................................... 296.5 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 (962—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—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 196g.—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 71.1 91.1 2.5 55.8 51.9 59.5 July................................... 351.7 351.1 289.1 231.0 68.9 71.1 91.0 2,5 55.6 52.0 58,9 Aug.................................... 354.9 354,4 291.1 233.2 69.4 ........7...5....4 88.4 2.5 55.5 52.0 60,1 * Includes non-interest-bearing debt (of which $640 million on Aug. 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 J Includes amounts held by U.S. Govt, agencies and trust funds, which bonds. totaled $19,351 million on July 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 E pe n r d i o o d f T g d r o e o t b s a t s l ag G U e a o n n .S v c d i . t e , s B F a . n R k . s Total m C e o rc m ia ­ l M sav u i t n u g a s l I c a n o n s m c u e r ­ ­ c O o t r h p e o r ­ S l a o t n c a d a te l Individuals F i o n a r n t e e d ig r ­ n O i m n t v i h s e c e s , r ­ crust banks banks panies rations govts. Savings Other national 1 tors 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—July,............. 331.2 75,5 46.8 208.9 58.3 4.2 8.7 11.9 24.7 50.7 20,2 14.4 15.9 Aug................ 336.4 77,2 46.6 212.6 60,2 4.2 8.7 12.4 25.1 50,8 20.7 14.3 16.2 Sept............... 336.4 76.4 46.9 213.1 61.1 4.2 8.7 10.7 24.9 50.8 21.7 14.7 16.2 Oct.,........ 341.0 75,9 47.4 217.7 63.6 4.1 8.8 11.6 24.6 50.9 22.3 14.8 17.0 Nov............... 345.6 76.2 48.9 220.5 63.5 4.2 8.7 13.0 24. 5 51.0 22.9 16.2 16.5 Dec................ 345.2 76.0 49.1 220.1 63.9 4.2 8.7 12.2 25.1 51.1 23.0 15.8 16.2 1968—Jan................. 346.8 74,7 49.1 223.0 63.1 4.1 8.6 13.4 25,6 51.0 23.5 15.4 18.3 Feb................ 352.1 76,4 49.0 226.7 63.9 4.2 8.5 14.8 26.4 51.1 24.1 15,2 18.5 Mar............... 350.0 75.9 49.7 224.5 62.2 4.2 8.6 14.2 27.0 51.1 23.8 14.7 18.5 Apr................ 347,5 75.8 50.5 221.3 60.0 4.1 8.4 13.7 26.8 51.1 24. 1 14.7 18.5 May 352.9 78.3 50.6 224.0 60.9 4.1 8.5 15.8 26.7 51.2 24.3 14.0 18.6 June.............. 348.1 79,1 52.2 216.8 59,2 4.0 8.2 13.2 26.5 51.2 23.8 12.9 17,8 July............... 351.7 78.3 52.4 220,9 60.6 3.9 8.2 14.4 26.6 51.2 24.4 12,9 18.6 t 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

SEPTEMBER 1968 a 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 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 1965—Dec. 31........................................................ 214,604 93/96 60,177 33,219 60 602 35/13 8/45 17 148 1966—Dec. 31........................................................ 218*025 105,218 64,684 40,534 59,446 28/05 8/33 16’923 1967—Dec. 31....................................................... 226/76 104/63 69,870 34/93 78 159 18/59 8 417 16'679 1968—June 30........................................................ 226’592 106’407 64 440 41 967 64 470 30 754 8 407 16*553 July 31........................................................ 230,977 110,824 68,858 41,966 64/69 30,754 8/06 16/25 U.S Govt, agencies and trust funds: 1965—Dec. 31................................................ 13,406 1,356 968 388 3,161 3,350 2,073 3 466 1966—Dec. 31................................................ 14'591 2/86 1,573 1 213 3 721 2/12 2/93 3 479 1967—Dec. 31................................................ 16,601 3,580 2,436 I 144 5/02 2'194 2,115 3 513 1968—June 30................................................ 17'421 3 428 2 184 1 ’244 4 884 3,479 2 116 3*516 July 31 ................................................ 17’254 3,255 2/22 1/33 4/10 3,457 2J15 3 '516 Federal Reserve Banks: 1965—Dec. 31................................................ 40,768 24,842 9,346 15,496 14/92 1/49 147 238 1966—Dec. 31................................................ 44,282 35/60 1 2,’296 23/64 7'502 1,007 153 260 1967—Dec. 31................................................ 49 112 31,484 16,04! 15,443 16/15 858 178 377 52’230 38’436 18,380 20 056 7’737 5 470 196 392 July 31................................................ 52/97 38,580 18/97 20/83 7,741 5/88 195 392 Held by public: 1965—Dec. 31................................................ 160,430 67,198 49,863 17,335 43,349 30/14 6/25 13 444 1966—Dec. 31................................................ 159,152 67,072 50,815 16/57 48’224 24/85 6,187 13,184 1967—Dec. 31................................................ I 60 763 69,299 51,393 17 906 56/42 15/07 6 124 12 789 1968—June 30................................................ 156 941 64 543 43 876 20 667 51,849 21 805 6’095 12 645 July 31................................................ 161 ,’326 68/89 48/39 20/50 51 ,818 21,809 6/96 12/17 Commercial banks: 1965—Dec. 31......................................... 50,325 18,003 10,156 7,847 19,676 11,640 334 671 1966—Dec. 31........................................ 47 182 15’838 8,771 7/67 21,112 9/43 435 454 1967—Dec. 31......................................... 52 194 18,451 10/15 8/36 26/70 6/86 485 502 1968—June 30......................................... 48 340 14’318 4,869 9 449 23 375 9,672 516 459 July 31......................................... 49/72 15,681 6/07 9/74 23,180 9,706 494 510 Mutual savings banks: 1965—Dec. 31..................................... 5,241 768 445 323 1,386 1,602 335 1,151 1966—Dec. 31......................................... 4 532 645 399 246 1,482 1’139 276 990 1967—Dec. 31......................................... 4 033 716 440 276 1,476 ’707 267 867 1968—June 30....................................... 3 885 772 436 336 1 242 814 246 810 July 31......................................... 3^821 766 427 339 1 ,225 788 245 797 Insurance companies: 1965—Dec. 31......................................... 8 824 993 548 445 1,938 2,094 1/96 2,703 1966—Dec. 31 ... ................................... 8,158 847 508 339 1,978 1 ,581 1,074 2/78 1967—Dec. 31......................................... 7/60 815 440 375 2/56 '914 1,175 2,400 1968—June 30......................................... 6 945 655 283 372 I 788 1,011 1; 126 2’363 July 31......................................... 6/58 685 320 365 1 ,779 I /13 1/39 2/41 Nonfinancial corporations: 1965—Dec. 31......................................... 8 014 5/11 4,657 1,254 1,755 225 35 89 1966—Dec. 31......................................... 6,323 4'729 3/96 1,333 I ,339 200 6 49 1967—Dec. 31......................................... 4 936 3/66 2 897 1,069 898 61 3 9 1968—June 30......................................... 5’333 3,839 2,121 1,718 1,304 180 3 8 July 31........................................ 5/61 4/49 2,748 1 601 1 393 204 2 12 Savings and loan associations: 1965—Dec. 3!......................................... 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 4 799 1’ 198 698 500 1 '688 1,148 308 456 July 31........................................ 4/77 1 198 686 512 1 ,669 1,146 308 455 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 4/12 1,033 2’ 165 1/99 1/10 4/65 1967—Dec. 31......................................... 14 689 5/75 4/55 1'120 2/24 '937 1,557 3/95 1968—June 30........................................ 14 644 6/47 4,927 1 /20 2/59 1/48 1,482 3/08 July 31......................................... 14/28 5,858 4,636 1 /22 2/24 1 /52 1 /59 3/35 All others: 1965—Dec. 31......................................... 68 675 35,356 29/89 6/67 15,784 11,386 2,187 3/62 1966—Dec. 31......................................... 73,690 38'685 32'646 6/39 18/96 9'619 2/15 4/75 1967—Dec. 31........................................ 72 976 38’, 121 31,628 6,493 21/51 5,991 2/56 4’555 1968—June 30......................................... 72 995 37,614 30,542 7,072 20/93 7/32 2,414 4/41 July 31 ......................................... 75/09 40/52 33,115 7/37 20/48 7/00 2/49 4/67 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,844 commercial banks, 501 mutual savings Ownership. banks, and 756 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

A-42 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 1968 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total Dealers and brokers securities Within 1-5 5-10 Over Com­ All 1 year years years 10 years U.S. Govt, Other m b e a r n c k ia s l other securities 1967—July.............................. 2,084 1 ,856 161 45 21 740 58 741 544 219 Aug............................... 1,884 1 ,578 243 33 30 662 60 662 500 159 Sept........................ I ^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............................. 2,'343 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 91 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 May............................. 2,247 1 ,’756 295 174 22 719 75 831 622 262 2,400 2^006 258 103 33 912 76 847 565 r311 July.............................. 2,448 2^087 244 75 42 949 87 908 504 275 Week ending—• 1968—July 3...................... 2,984 2,644 213 80 27 1 099 71 1,124 690 231 10...................... 2^518 2'205 206 86 20 928 66 1 ’,005 519 239 17....................... 2'205 1 ^846 258 66 36 853 121 ’778 454 254 24....................... 2,357 1 ^892 310 70 84 1 ,001 89 833 434 404 31....................... 2,163 1 842 212 73 36 '793 72 810 r489 234 Aug. 7..................... 2,878 2,176 340 333 30 1 ,207 135 1,037 498 265 14..................... 2, 104 1 ,426 238 422 17 707 93 838 465 228 21..................... 2'186 I ,779 193 201 14 854 80 730 521 253 28..................... 1 '738 1.417 181 122 18 26 237 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 securj- 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 i y t e h a in r y 1 e - a 5 rs 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 U c es Y C N o i e t r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1967—July.......... 2,239 2,115 106 18 239 Aug...... 2’903 2,564 312 26 265 1967—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 3,404 3,310 114 -20 393 Feb.......... 3,’762 3 .’500 108 153 369 1968—Jan.............3,209 1 ,003 816 944 446 Mar......... 2,438 2,211 124 103 361 Feb............ 3 799 1 072 1 008 1 071 648 Apr.......... r2 i 981 r2'601 236 142 403 Mar.. 2,651 678 ’643 829 r501 Maye. • .. 3,204 2,585 306 312 382 Apr............ 3 073 794 832 937 510 June........ 3,308 2,826 222 261 576 May.......... 3,162 699 923 844 696 July.........4.,341 1,193 1 ,032 1 ,415 701 June.......... 3,458 867 879 1 ,010 702 July............ 4,420 3,972 159 '288 624 Week ending—■ Week ending— 1 968—June 5 . . 3,575 3,037 260 278 469 12. . 3,552 3,067 224 260 508 1968—June 5... 3,442 988 965 1 ,044 445 19. . 3,537 3,026 242 269 625 12. . . 3,715 928 963 1 ,029 795 26. . 2,824 2,360 207 256 641 19. . . 3,731 1 ,004 997 975 755 26. . . 3,273 748 694 1 ,005 824 July 3... 2,878 567 700 1 .065 546 10. . . 3,222 498 769 1 ,253 702 July 3.... 2,946 2,540 152 254 602 17. . . 4,685 1 ,255 1 ,104 1 ,465 861 10.... 4,039 3,589 182 268 564 24. . . 4,939 1,642 1,132 1 ,541 624 17.... 4,409 3,990 148 271 564 31 . . . 5,079 1 ,623 1 ,249 1,515 693 24. 4,747 4,312 145 291 666 31 ... . 5,252 4,746 167 338 792 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

SEPTEMBER 1968 □ GOVERNMENT SECURITIES A-43 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 31, 1968 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. 1,501 Feb. 6, 1969................. 1 ,103 Apr. 1,1971..■. .1'4 35 Feb. 15, 1970...........4 4,381 Sept 5,’ 1968................. 2,600 Feb. 13, 1969................. 1 ,101 May 15, 1971.........514 4,265 Aug. 15, 1970........ 4 4,129 Sept. 12, 1968................. 2’601 Feb. 20’ 1969................. 1.101 Oct. 1,1971........■ 1’4 72 Aug. 15, 1971........ 4 2,806 Sept. 19' 1968................. 2’601 Feb. 27. 1969................. 1,104 Nov. 15, 1971........ 1,734 Nov, 15, 1971........ 3’4 2.760 Se*pt 26’ 1968 . . 2’601 Feb. 28, 1969............... 1 ,502 Feb. 15, 1972.........4% 2,006 Feb. 15, 1972.........4 2,344 Sept. 30. 1968................. 1 ’500 Mar. 24’ !969f............... 2,015 Apr. 1, 1972........■ 1'4 34 Aug. 15, 1972........ 4 2,579 Oct. 3 1968 . 2 602 Mar. 3! 1969................. 1'500 May 15, 1972....... .4% 5,310 Aug. 15, 1973........ 4 3,894 Oct. 10, 1968................. 2,602 Apr. 22’ 1969f.......... 2’003 Oct. 1, 1972.........1'4 33 Nov. 15, 1973....... 4’4 4,351 Oct. 17, 1968............... 2 704 Apr. 30, 1969................. 1 ,501 Apr. 1, 1973........• 1‘4 19 Feb. 15, 1974........ 414 3,129 Oct. 24, 1968 ............. 2,702 May 31,' 1969................. 1 ,002 Aug. 15, 1974....... .5% 10.284 May 15, 1974........ 414 3,588 Oct. 31. 1968.. .............. 4 201 June 30’, 1969................. 1 ,002 Nov. 15, 1974....... • SV. 1,652 Nov. 15, 1974.........3’4 2,241 Nov. 7, 1968 ............. 2’702 July 31,’ 1969................. 1 '001 Feb. 15, 1975........■ 51/4 5,148 May 15, 1975-85.. 4 >4 1,215 Nov. 14, 1968................. 2 ’, 701 May 15, 1975.........6 6,750 June 15, 1978-83.. 3 >4 1,568 2,702 Feb. 15, 1980........ 4 2,600 Nov. 29, 1968............... , 2,700 Nov. 15, 1980........ 3 >4 1,908 Nov. 30’ 1968................. 1 ,501 Treasury bonds May 15, 1985........ 3'4 1,111 Dec. 5,' 1968................. 1 ^099 Oct. ' I, 1968...........1 ^ 115 Dec. 15, 1963-68...21/, 1 ,787 Aug. 15, 1987-92.. 4'4 3,816 Dec. 12, 1968................. I ,100 Nov. 15, 1968..........5 >4 8,984 June 15, 1964-69...2'4 2,542 Feb. 15, 1988-93.. 4 249 Dec. 19^ 1968................. I '101 Feb. 15, 1969..........5 5/8 10,738 Dec. 15, 1964-69..■ 2'4 2,489 May 15, 1989-94.. 4'4 1,559 Dec. 26, 1968................. 1,105 Apr. 1’1969...........1’/i ’ 61 Mar. 15, 1965-70.,■ 2i/; 2,284 Feb. 15, 1990........ 3'4 4,878 Dec. 31,’ 1968,............... 1 ,499 May 15’ 1969..........5^ 4,277 Mar. 15, 1966-71. ..2'/,, 1,223 Feb. 15, 1995........ 3 1,670 Jan. 2’ 1969................. 1,100 Aug. 15, 1969..........6 ~ 3,366 June 15, 1967-72...2'/, 1 ,249 Nov. 15, 1998........ 3'/2 4,331 Jan. 9, 1969................. 1 J02 Oct. 1, 1969...........I’/z 159 Sept. 15, 1967-72.. .2% 1 ,952 Jan. 16’ 1969................ 1 ’101 Apr. 1’ 1970...........1V1 88 Dec. 15, 1967-72. . ■ 2'/i 2,610 Jan. 23’ 1969................. 1,100 Oct. 1/ 1970...........D/2 113 Nov. 15, 1968........ .3% 1,158 Convertible bonds Jan. 30, 1969................. 1 J01 Nov. 15, 1970..........5 “ 7,675 Feb. 15, 1969....... .4 3,728 Investment Series B Jan. 31’, 1969................. 1 .500 Feb. 15’, 1971..........5% 2,509 Oct. 1, 1969.........4 6,245 Apr. 1,1975-80.. 2’4 2,510 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 deliv­ Total G g o a e b t a n i l l o e i­ n r­ s R n e u v e e­ HA Al G l U o o a . v S n t . s , State S d a i p s a s u t e n t a t c r d t h i i , c a . t l Other2 ered 3 Total c E at d io u n ­ b R r a o id n a g d d e s s i U ti t e i s l­ 4 H in o g u s s­ V a a e n i t d s e ’ r ­ p O p o t s u h e r e s ­ r (961................. 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 9J 3 1962................. 8^845 5,582 2,681 437 145 1,419 2,600 4; 825 8^732 8'568 2’963 1,114 I ^668 521 125 2 177 1963................. 10,538 5,855 4,180 254 249 1,620 3,636 5’281 10,496 9,151 3,029 '812 2; 344 598 2 369 1964................. 10^847 6,417 3^585 637 208 1,628 3,812 5,407 10,069 10,201 3’392 688 2^437 727 120 2*838 1965................. 11’329 7 J 77 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 6,804 3,955 325 312 2,590 4,110 4,695 n.a. 11,303 3,738 1 ,476 1 ,880 533 3*667 1967................ 14,766 8,946 5,013 477 334 2,842 4,810 7J 15 n.a. 14,643 4’473 1,254 2'404 645 5*867 1967—June.... 1 ,497 860 492 117 29 138 682 677 n.a. 1,497 597 26 228 (48 498 July.. .. ’950 665 246 39 186 260 504 n.a. 943 314 36 193 7 191 Aug...... 860 588 254 18 195 234 430 n.a. 858 212 142 211 52 242 Sept...... 1 ,340 566 648 105 21 246 588 507 n.a. 1,330 333 184 250 110 453 Oct........ 975 686 256 32 207 257 510 n.a. '974 269 130 139 18 417 Nov..... 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. 1 182 277 43 129 152 580 1968—-Jan........ 1,175 839 307 29 450 300 427 n.a. 1,133 425 206 174 328 Feb....... 1 J 49 688 448 14 152 382 616 n.a. 1,147 474 1 16 127 7 429 Mar..... I ’396 594 644 144 15 110 514 771 n.a. 1 ;384 373 9 130 190 682 Apr....... 1 '307 791 498 18 80 579 647 n.a. 1 ,298 292 128 321 112 445 May.... 1 J18 680 234 144 59 219 305 595 n.a. IJI7 394 52 204 158 309 June.... 1,354 672 651 31 87 535 734 n.a. 1 ,354 362 182 251 8 ........5..4..9 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 ■* 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-44 SECURITY ISSUES □ SEPTEMBER 1968 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Proposed use of net proceeds, all corporate issues * Noncorporate Corporate New capital Re­ Period Bonds Stock tire­ ment Total U.S. U.S. Total Other of G U o . v S t . .2 G a c g o y e v n 3 t ­ , l S o a t c n a a d t l e 4 Other 5 Total Total of P l f i u c e l r b y e ­ d p v l P a a t r c e i e ­ ly d fe P rr re e ­ d C m o o m n ­ Total m N on ew ey 7 p p o u s r e ­ s s ri e t c ie u s ­ I960.................. 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 9,653 8,758 895 271 1961................... 35,527 12,253 1 ,448 8,360 303 13,165 9,420 4,700 4,720 450 3,294 12,885 12,017 10,715 1,302 868 1962................... 29,956 8,590 1,188 8>58 915 10,705 8 >69 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 l0>44 760 13,957 1o;865 3,623 7,243 412 2>79 13,792 13,038 11,233 1,805 754 1965................... 40 J08 9 >48 2,731 11’148 889 15,992 13 >20 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 >54 14>90 6,964 885 1 >59 24,409 24>97 22,233 1,867 312 1967—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 I ,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 I ,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 >96 '645 551 81 222 1,470 1,467 1,305 163 3 Dec......... 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 1,705 1 ,588 117 27 Feb......... 8,072 4,719 550 1,134 61 1,608 1 ,382 796 585 58 169 1 ,585 1 >68 1 >47 121 16 Mar. 5,'069 418 1 ,370 I ,363 118 1,799 1 >59 766 593 145 295 1 >65 1 ,740 1 ,592 149 24 Apr.r.... 3,423 404 225 1,277 88 1 ,428 1,157 719 438 49 221 1,397 1,385 1 ,210 175 12 Mayr.... 7,702 3.805 744 1,134 153 1 ,866 1 ,566 1 ,046 521 51 249 1 ,829 1 ,825 1 ,647 177 4 June....... 4,980 383 779 1 ,360 48 2,411 2,025 1 ,340 685 24 361 2,367 2,334 1 ,944 389 33 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital0 secu­ 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 I ,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 Hl 2,211 47 2,016 22 4,741 127 1,955 1 2,399 5 1967--June.................................. 1,298 16 218 3 128 471 350 146 July.................................. 925 22 388 23 379 20 446 24 39 277 Aug.................................... 1,229 10 95 3 99 509 19 356 119 2 Sept.................................... 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 * Dec............... 1,109 6 409 1 198 .............. 278 68 273 1968-—Jan..................................... 537 15 208 11 91 .............. 417 185 267 Feb................................. 556 5 142 1 118 546 8 147 ........ 61 2 Mar................................ 761 1 175 * 192 431 17 78 6 102 Aprr.................................. 353 11 317 203. . 178 ............. 189 1 146 Mayr................................. 550 1 175 1 106 2 549 ........ 103 341 1 June................................... 150 5 394 1 154 .............. 474 27 237 ............. 326 1 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price, ? For plant and equipment and working capital. * Includes guaranteed issues. s AD 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 I year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 In co ve s s .1 t, Other I c n o ve s s .1 t, Other I c n o ve s s .1 t, Other 1963....................... 15,641 8,7U 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 I ,895 2,317 2,468 1,431 1965....................... 21,535 10,025 11,511 12,747 4,649 8,098 5,583 3,205 2,134 3,242 3,450 -37 1966....................... 26,327 9,567 16,761 15,629 4,542 11,088 6,529 4,169 2,025 3,000 4,504 1,169 1967...................... 33,303 10,496 22,537 2!,299 5,340 15,960 6,987 4,664 2,761 2,397 4,226 2,267 1967—-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 1,394 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—1r................ 7,682 3,049 4,663 3,997 1,286 2,71 I r2,454 I ,230 821 912 '1 ,633 319 H................ 8,384 3,933 4,431 5,124 I ,308 3,816 1 ,815 1 ,424 1 ,053 1 ,572 762 -147 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B n o o nd te s s Stocks & B n on o d te s s Stocks & B n o o n t d e 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 4,4(4 1967....................... 7,237 832 1,104 282 1,158 165 3,444 652 1 ,716 467 1,302 4,178 1967—11................ 1 ,858 107 153 52 198 47 1,089 117 320 158 41 754 Ill............... 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—Ir................ 991 -60 257 112 170 -26 956 309 295 31 109 -46 II................ 1 ,520 -556 375 -5 260 10 848 214 524 33 288 -219 1 Open-end and closed-end companies. exclude foreign and include offerings of open-end investment cos., sales of 2 Extractive and commercial and misc. companies. securities held by affiliated cos. or RFC, special offerings to employees, 3 Railroad and other transportation companies. and also new stock issues and cash proceeds connected with conversions 4 Includes investment companies. of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for Note.—Securities and Exchange Commission estimates of cash trans­ that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re t d io 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 si a t s i h o n3 Other 1956.............. 1,347 433 914 9,046 492 8,554 1967—July... 425 222 203 43,064 2,515 40,549 1957 .............. 1,391 406 984 8,714 523 8,191 Aug... 347 249 98 42,663 2,370 40,293 1958.............. 1,620 511 1,109 13,242 634 12,608 Sept... 352 246 106 43,585 2*244 41 ',341 Oct... 409 270 139 42,652 2,218 40,434 1959.............. 2,280 786 1,494 15,818 860 14,958 Nov. . 468 231 237 43,262 2,653 40,609 1960.............. 2,097 842 1 ’255 17,026 973 16,053 Dec.. . 501 242 259 44^01 2,566 42;135 1961.............. 2’951 1,160 1,791 22,789 980 21,809 1962.............. 2,699 I ,'123 1,576 21,271 1,315 19,956 1968—Jan.... 556 316 240 42,466 2,679 39,787 Feb.. . 451 260 191 41,533 3,409 38,124 1963.............. 2,460 1,504 952 25t214 1,341 23,873 Mar... 557 243 314 42,412 3 919 38,493 1964.............. 3,404 1 ,’875 1 ,528 29,116 1,329 27'787 Apr,. . 618 309 309 46’179 3,923 42,256 1965.............. 4,359 1,962 2,395 35,220 1 ,803 33,417 May.. 502 366 136 48,054 3'495 44’559 1966.............. 4,671 2,005 2’665 34,829 2.971 31 ,858 J une. , 535 374 161 48’426 3 273 45153 1967.............. 4; 670 2,745 1,927 44,701 2,566 42,’135 July. . 581 344 237 47.342 3 11 3 44,229 1 Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, all U.S Govt, securities, and other and contractual accumulation plan sales, and reinvestment of invest­ short-term debt securities, less current liabilities. ment income dividends; excludes reinvestment of realized capital gains dividends. Note.—Investment Company Institute data based on reports of mem­ 2 Market value at end of period less current liabilities. bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-46 BUSINESS FINANCE □ SEPTEMBER 1968 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 III IV I Manufacturing Total (177 corps.): Sales............................................... 147,380 158,253 177,237 195,738 201,399 49,850 46,202 51,991 48,585 51,679 48,317 52,818 53,699 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 6,193 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 3,497 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 1,710 Nondurable goods industries (78 corps.):1 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 3,027 682 673 723 720 756 770 781 742 Durable goods industries (99 corps.):2 Sales............................................... 92,008 98,482 112,341 122,094 123,429 31,354 27,905 32,861 29,842 32,144 28,622 32,821 32,441 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 3,491 Profits after faxes.. ................. 5,492 6,341 7,675 7,834 6,352 2,216 1,456 2,115 1,599 1,847 1,068 1 ,838 1 ,888 Dividends..................................... 3,179 3,525 4,000 4,191 3,964 1 ,072 958 1,242 950 945 952 1 ,117 968 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....................................... 448 481 509 564 583 142 139 146 148 144 146 145 150 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 2,731 874 789 650 694 700 636 701 916 Profits after taxes......................... 1,182 1 ,400 1,630 1,737 1,579 480 443 386 396 404 363 416 501 Dividends...................................... 904 924 926 948 960 224 234 269 238 235 235 252 236 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 I ,541 1,898 2,038 467 479 495 505 504 489 540 655 Dividends.............................. 608 672 737 817 1 ,079 204 204 209 232 280 286 281 253 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 I ,475 1,689 1 ,903 1,506 537 490 475 395 411 290 410 368 Dividends...................................... 734 763 818 924 892 218 230 260 222 214 228 228 224 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 8,327 Profits before taxes....................... 2,394 2,704 3,107 3,612 3,482 915 851 952 868 807 837 970 920 Profits after taxes......................... 1,177 1 ,372 1,626 I ,875 1 ,789 480 444 495 421 417 438 513 475 Dividends...................................... 577 673 774 912 921 225 226 244 232 233 227 229 244 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 I ,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 I ,890 1,775 1 ,567 503 361 551 363 365 362 477 362 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 83 125 Profits after taxes......................... 651 694 816 902 325 259 227 244 121 143 78 -17 110 Dividends...................................... 383 438 468 496 539 109 113 161 124 156 103 155 114 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 5,138 Profits before taxes....................... 3,735 3,926 4,213 4,395 4,564 987 1,153 1,041 1,279 1,026 1,161 1 ,099 1 ,284 Profits after taxes......................... 2,187 2,375 2,586 2,764 2,911 632 702 673 799 666 717 729 863 Dividends....................................... 1,567 1,682 1 ,838 1 ,932 2,071 486 475 505 518 510 509 534 539 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 1 Includes 17 corporations in groups not shown separately, Telephone: Data obtained from Federal Communications Commis­ 2 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts, of American Telephone and Telegraph Co.), published reports of companies. and for 2 affiliated telephone companies. Dividends are for the 20 operat­ Railroads: Interstate Commerce Commission data for Class I line­ ing subsidiaries and the 2 affiliates. haul railroads, . t All series: Profits before taxes are income after all charges and before Electric power: Federal Power Commission data for Class A and B Federal income faxes 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

SEPTEMBER 1968 □ BUSINESS FINANCE A-47 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t r e a o f x o f e i r t s e s c ta o I x n m e ­ s e 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 n a l t l i s p o o u i w n t m a ­ l p ­ Quarter 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 o f 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 s o p o u i n w t m a ­ l p ­ ances1 ances 1 1961.............. 50.3 23.1 27.2 13.8 13.5 26,2 1966—IIIr.. 86.7 35.0 51.6 21.9 29.7 40.1 IV'.. 85.0 34.4 50.7 21,6 29.1 41.0 1962.............. 55.4 24.2 31.2 15.2 16,0 30. 1 1963.............. 59.4 26.3 33.1 16.5 16.6 31.8 1967—J'. .. 79.9 32.8 47.1 22.5 24.6 41.9 1964.............. 66.8 28.3 38.4 17.8 20.6 33.9 IP... 80.3 33.0 47.3 23.2 24.1 42.9 HI'.. 80.8 33.2 47.6 23.5 24.1 44.1 1965 r............ 77.8 31 .3 46.5 19.8 26,7 36.4 IVT. 85.4 35.1 50,3 22.5 27,9 44.9 1966’’............ 85.6 34,6 51 .0 21.7 29.3 39.7 1967 r............ 81.6 33,5 48.1 22.9 25.2 43.4 1968—1'. .. 88.9 39.8 49.1 23.6 25.5 45.7 IP... 91.1 40.8 50.3 24.4 25.9 46.7 1 Includes depreciation, capita! outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts, Notes and accts, End of period working U. S. receivable payable Accrued capital Total Cash s G ec o u v r t i , ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1961............................. 148.8 304.6 40.7 19.2 3.4 133.3 95.2 12.9 155.8 1.8 110.0 14,2 29.8 1962............................. 155.6 326.5 43.7 19.6 3,7 144.2 100.7 14.7 170.9 2.0 119.1 15.2 34.5 1963............................. 163.5 351.7 46.5 20.2 3.6 156.8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964............................. 170.0 372,2 47.3 18.6 3.4 169.9 113.5 19,6 202.2 2.7 140.3 17.0 42.2 1965 ............................. 180.1 406.6 49.7 16.5 3.9 187.9 125.7 22.9 226.5 3.1 158.0 18.8 46.6 1966—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 in........... 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 n....................... 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 in..................... 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—1........................ 204.9 467.5 50.1 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 a n bl ­ e Mining Railroad Other u P t u il b it l i i e c s C ni o c m ati m on u s ­ Other 1 a ( 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 (964........................................ 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'................................. 64,37 13.42 13.13 1.49 1.52 4.55 11.29 6.42 12.56 1966—in................................. 15.57 3.54 3,30 .37 .48 .82 2.36 1.36 3,33 61,25 IV............................. 17.00 4.07 3.68 .38 .55 .86 2.36 1,58 3,52 62.80 1967—1................................... 13.59 3.08 3.02 .32 .41 .70 1.84 1.35 2,87 61.65 II.................................. 15,61 3,46 3.34 .34 .41 1.12 2.46 1.49 2.99 61.50 Ill................................. 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 II............................................ 15.90 3.22 3.28 .36 .38 1 .04 2.97 1.51 3.14 62.75 Hpr............................. 16,44 3.32 3.33 .38 .34 1.23 2.98 4.84 64,90 IV2.............................. 17,75 3.91 3.69 .38 .43 1.30 3,00 5.04 65.15 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

A-48 REAL ESTATE CREDIT □ SEPTEMBER 1968 MORTGAGE DEBT OUTSTANDING (In billions of dollars) AU properties Farm Nonfarm Other 1- to 4-family houses'1 Multifamily and Mortgage E pe n r d i o o d f h A e o r l l s d l ­ t F u i t n i c i n i s o a a t n l i n ­ s ­ ! a U c g i . e e S h n s o . ­ lde v o r I i s t a d n h 2 n u d e d a i r ­ l s s h A e o r l l s d l ­ t F u i t i c n n i i s o a a t l n i n ­ s ­ 1 O h e o t r h s ld e 3 ­ r h e A o r l l s d l ­ Total t F u i t n i i n o s a t n i n ­ s , 1 O ho e th r l s d e ­ r c T o o m ta m l er t c F u i i a t n i i n l s o a t p n i n r ­ s , o 1 pe O h rt e o t i r h e l s d s e ­ r s w u F V n r H i d A t A t e e - t r y - n ­ pe 6 t C i v o o e 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 81.2 223.6 1966?......... 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—I?... 332.0 269.6 13.5 48,9 21.8 8.0 (3.7 310.3 216.3 187.3 29.1 93.9 74.3 19,6 82.1 228.2 II?.. 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—I?... 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 III?.. 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 IV?.. 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 p. . 374.8 302,7 19.6 52.5 25.6 9.2 16.4 349.2 239.1 203,9 35.2 110. 1 89.6 20.5 89.0 260.2 II?.. 381.8 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-family 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 ­ ­ n fa o r n m ­ Farm Total Total FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ O f n a t o r h n m e ­ r Farm sured anteed tional sured anteed tional 1941............................... 4,906 3,292 1,048 566 4,812 3,884 900 28 1945 ............................. 4'772 3,395 856 521 4'208 3,387 797 24 1961............................... 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,029 2,753 51 1962............................... 34'476 23,482 6’520 2,654 14^308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1963............................... 39,414 26,476 7’105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11'544 3'454 52 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36.487 12,287 11,12! 13,079 4,016 53 1965............................... 49,675 32,387 7',702 2,688 21’,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4'469 52 1966............................... 54'380 34,876 7,544 2,599 24'733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................... 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 1966—1.......................... 50,650 32,822 7,717 2,659 22,446 14,840 2,988 45,370 40,700 13,956 11,408 15,336 4,617 53 II........................ 52,306 33,800 7'769 2,654 23'377 15,478 3,028 45,883 41,083 14,’047 11,346 15,690 4'747 53 ......5..3..^..6..0..6......34^469 7,687 2^620 24,162 16'028 3,109 46,622 41;673 14,274 11,413 15,986 4,896 53 IV....................... 54’380 34,876 7'544 2,599 24'733 16,366 3,138 47,337 42,242 14'500 11,471 16,272 5,041 53 1967—1........................ 54,531 34,890 7,444 2,547 24,899 16.468 3,173 48,107 42,879 14,723 11,619 16,537 5,176 52 . 55,731 35,487 7,396 2'495 25’596 16,970 3,274 48,893 43,526 14,947 11,768 16'811 5,316 51 HI....................... 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

SEPTEMBER 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 1 394 4 466 766 1961.............................................. 6,785 6,233 1,388 220 4,625 552 44 203 41 033 9 665 6 553 24 815 3 170 1962.............................................. 7,478 6*859 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 79’595 3 792 1964.............................................. 10:433 9,386 1,812 674 6,900 1 047 55’152 50*848 11 484 6*403 32*961 4*304 1965.............................................. 11,137 , 9,988 1,738 553 7,697 1,149 60 013 55 190 12,068 6,286 36 836 4*823 1966.............................................. 10'217 9,223 1 300 467 7 456 994 64 609 59 369 12 351 6 201 40*817 5 240 1967.............................................. r8 470 ^<633 ''757 M44 'S’432 ^837 67’516 61*947 12 J 61 6*122 43*664 5 569 1967—Juner............................... 636 561 57 35 469 75 66 181 60 804 12 344 6 186 47- 274 5 377 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 66701 61*239 12*263 6*131 42*845 5 462 Oct................................. 675 623 68 40 515 52 66 884 61*401 12*236 6 124 43*041 5 *483 Nov......................... 662 603 50 30 523 59 67 097 61 *595 12’214 6112 43’269 5 *502 Dec............................... 1,077 953 58 33 862 124 67 595 62*038 12*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 12*164 6 097 44*031 5 *575 Mar.................................... 640 531 52 28 451 109 '68*055 62*421 12 137 6*086 44*198 5*634 Apr................................... 521 435 40 20 375 86 68 123 62*448 12 103 6,067 44*278 5 *675 May................................... 648 583 55 23 505 65 68,339 62*634 12,075 6 047 44*512 5 *705 June................................... 568 519 53 20 446 49 68,508 62^777 12,047 6^22 44’708 5;?31 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because (1) 1959 and with “other” nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) New Period va A n d ce ­ s R m e e p n a ts y­ M de e p m o b si e t r s s’ 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 an teed 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 3^94 3^79 2^05 1,474 1,213 1961............. 17,364 5 081 7,207 68,834 4,167 7,152 57 515 1963....................... 5’,601 4,296 4^84 2:863 1,921 1 i 151 1962............. 20 ,’754 5,979 8,'524 78 ,’770 4376 7 010 67 284 1964....................... 5,565 5,025 5,325 2,846 2,479 1,199 1963............. 24,735 7’,039 9,920 90,944 4^96 6^60 79 288 1965....................... 5^07 4^35 5^97 3^74 2^23 1,043 1964.............. 24,505 6 515 10,397 101,333 4 894 6’683 89’756 1966.................. . . 3^04 2^66 6^35 5:006 1,929 1 ,036 1965............. 23:847 5,922 10,697 110:306 5,145 6,398 98,763 1967....................... 1 ^27 4,076 4', 386 3^85 '401 1,432 1966............. 16,720 3^06 7’,746 114,447 5,270 6 158 103’019 1967............. 19,891 4,190 9,505 121’,893 5,794 6,356 109,743 1967—July............ 193 274 4,221 3,680 541 1,521 Aug....... 134 202 4J53 3,659 494 1,343 1967—July... 1,860 382 951 117,676 5,437 6,187 106,052 Sept............ 102 133 <122 3,642 480 1,317 Aug... 2,228 424 1,186 118,674 5,514 6,223 106,937 Oct............. 160 169 4,114 3,681 433 1,323 Sept... 1,971 381 1,017 119,529 5,576 6,258 107,695 Nov............ 176 102 4,188 3,793 395 1,347 Oct.... 1,950 413 949 120,362 5,660 6,292 108,410 Dec............ 252 54 4,386 3 ^85 401 1J 432 Nov... 1,801 388 856 121,127 5,714 6,336 109,077 Dec... 1,759 380 780 121,893 5,794 6,356 109,743 1968—Jan............. 308 251 4,442 3,963 479 1,198 Feb............. 101 195 4^48 3,806 542 1,182 1968—Jan.... 1,389 291 665 122,095 5,787 6,405 109,903 Mar............ 87 166 4,269 3,733 536 1,302 Feb.. . 1,456 305 704 122,637 5,853 6,447 110,337 Apr............. 386 111 4^45 4^26 519 1270 Mar... 1,766 409 840 123,426 5,903 6,482111,041 282 108 4',719 4,197 522 1,293 Apr... 1,952 475 934 124,305 5,964 6,528 111,813 June....... 245 75 4,889 4,408 481 1 ,382 May. . 2,087 505 1,041 125,262 6,029 6,564 112,669 July............ 334 235 4,988 4,535 453 <184 June.. 1,965 426 1,066 125,988 6,082 6,599 113,307 July v. 1,850 395 1,035 126,720 6,180 6,629113,911 i Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than t Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note,—Federal Home Loan Bank Board data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-50 REAL ESTATE CREDIT □ SEPTEMBER 1968 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON (In millions of dollars) NON-FARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) FHA-insured VA-guaranteed Government- Period Total Mortgag E e x s ­ e P c r t o s j­ 1 P e i r m r o ty p ­ ­ Total 3 Mortgag E e x s ­ E pe n r d i o o d f Total und F e H rw A ri - t ten VA- t C i v o e o n n n a ­ ­ l h N om ew es h is o t m in e g s m pr e o n v t e s ­ 2 h N om ew es h is o t 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 4,516 642 623 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—July.................. 595 103 399 36 58 296 82 214 Aug................. 762 129 525 45 62 340 97 243 1966—1.......... 216.3 74.1 43.0 31.1 142,2 Sept................. 758 129 514 58 56 352 101 25 1 H 219.8 74.6 43.7 30.9 145.2 Oct.................. 817 150 515 88 64 434 125 310 Ill........ 222.0 75.4 44.4 31.0 146.6 Nov.,........ 746 149 471 72 53 383 127 255 IV........ 223.7 76.0 44.8 31,2 147,8 Dec.................. 594 124 334 90 47 340 124 217 1967—1*........ 225,2 76.4 45.2 31.2 148.8 1968—Jan................... 693 147 431 70 45 349 135 213 II*........ 228.2 77.2 45.7 31.5 150.9 Feb.................. 573 124 312 100 36 280 111 169 III*.... 232.2 78.3 46.6 31.7 153,9 Mar................. 535 120 314 62 39 267 115 152 IV*.... 236.1 79.9 47.4 32.5 156.2 Apr.................. 603 131 340 80 53 265 110 156 May................. 686 121 374 131 60 280 112 168 (968—1 *........ 239.1 80.6 48.1 32.5 158.5 June................ 674 123 371 122 58 241 98 143 July.................. 712 135 438 72 66 327 120 207 1 Includes outstanding amount of VA vendee accounts held jy private investors under repurchase 1 Monthly figures do not reflect mortgage amendments included in annual totals. agreement. 2 Not ordinarily secured by mortgages. J Includes a small amount of alteration and repair loans, not shown separately; only such Note.—For total debt outstanding, figures are loans in amounts of more than $1,000 need be secured. ' FHLBB and F.R. estimates. For conventional, figures are derived. rep N re o s t e e n .— t g F ro e s d s e r a a m l o H un o t u s o i f n g in su A r d a m nc i e n , wr a i n tt d e n; V V et A er - a g n u s a ra A n d te m e i d n , l oa d n a s t , a . g ro F ss H a A m -i o n u s n u t r s e d o f l l o o a a n n s s Bo B a a rd se , d F e o d n e ra d l a H ta o u f s r i o n m g A F d e m d i e n ra ., l an H d o V m e e t er L an o s a n A d B m a i n n k . closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. 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 AU residential Multifamily i (during mit­ End of End of period) ments period Finan­ Finan­ period Total F su H i r n e A ­ d - a g n V u t A e a e r - ­ d ch P a u s r e ­ s Sales bu d u r i n s s ­ e ­ d Total tu in c ti i s o a t l i n ­ s h O ol t d h e e r r s Total tu i c n ti i s o a t l i n ­ s h O ol t d h e e r r s 1941............... 24.2 14.9 9.4 5.8 3.6 2.2 1961. 6,093 3,490 2,603 815 541 631 1945............... 24.3 15.7 8.6 5.7 3.5 2.2 1962, 5,923 3,571 2,353 740 498 355 1963. 4,650 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 1,327 913 200 793 1963............... 211.2 176.7 34.5 29.0 20.7 8.3 1966. 7,063 5,407 1,656 2,701 705 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.....2..5..0....0... 213.1 36.8 36.8 28.5 8.3 1967--July................ 7,624 5,890 1,734 136 1 1,333 1966*............. 263.2 223.2 40.0 39.5 30.9 8,5 Aug................ 7,872 6,076 1,796 291 1 1.447 1967*............. 278.7 235.7 43.0 42.6 33.8 8.8 Sept................ 8,105 6,249 1,856 272 1,473 Oct................. 8,371 6,441 1,930 307 1,535 1966—1*........ 254.1 216.6 37.5 37.7 29.3 8.4 Nov................ 8,610 6,615 1,995 279 1,676 H*.. . . 258.3 219.9 38.4 38.5 30.0 8.5 Dec................ 8,870 6,803 2,066 299 1,672 III*. . . 261.0 221.8 39,2 39.0 30,5 8.5 IV* . . . 263.2 223.2 40.0 39.5 30.9 8.5 1968--Jan................. 9.220 7.052 2,168 388 1,588 Feb................. 9,525 7,268 2,257 341 1 1,494 1967—1*........ 265.4 224.7 40.7 40.2 31.6 8.6 Mar................ 9,800 7,474 2,326 316 1,451 II*.. . . 269.0 228.0 41.1 40.9 32.2 8.6 Apr................ 10,046 7,657 2,389 289 1,454 III*. . . 273.9 231.9 42.0 41.7 33.0 8.7 May............... 10,282 7,837 2,445 280 1,906 IV* . . . 278.7 235.7 43.0 42.6 33.8 8.8 June............... 10,503 8,001 2,502 267 1,759 July................ 10,656 8,117 2,539 194 ............ 2,011 1968—1 *.. ,. 282,3 238.2 44.1 43.2 34.3 8.9 Note.—Federal National Mortgage Assn, data, including mortgages 1 Structures, of 5 or more units. For 1- to 4-family mortgage debt see subject to participation pool of Government Mortgage Liquidation second preceding page. Trust, but excluding conventional mortgage loans acquired by FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Note.—Based on data from same source as for “Mortgage Debt Out­ Housing Admin., and Community Facilities Admin. standing” table (second preceding page). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ 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 e t c n e t r ) t ­ c F c h e ( e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L r c p ( a o e p r t i n a e i c t r n o e ) / (t d h c o p o P h l r u u l i a a s c r s r . e ­ e s o ) f (t a h d m o L o l u o o la s a u r . n n s o ) t f C c t ( r r e p a o a n e t n c e t r ) t ­ c F c h ( e e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t n i a e i c t o n r e ) / (t d h c o p o P h l r u l u a i a s c s r . r e ­ e s o ) f (t d a h L m o o l u o l o a a s u r . n s n o ) t f 1963. 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19.2 70.8 17.8 12.6 1964. 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965. 5.74 .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--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........... 6.69 .95 25.0 73.2 30.2 22.1 6.81 .87 22.5 73.1 25.3 18.5 June............ 6.88 .95 25.4 74.4 30.4 22.6 6.97 .86 22.6 73.1 25.2 18.4 July'1.......... 7.04 .86 25.5 73.7 30.6 22.6 7.10 .82 22.6 72.5 25.8 18.7 1 Fees and charges—related to principal mortgage amount—include originated by major institutional lender groups (including mortgage loan commissions, fees, discounts, and other charges, which provide companies) for purchase of single-family homes. Data exclude loans for added income to the lender and are paid by the borrower. They exclude refinancing, reconditioning, or modernization; construction loans to any closing costs related solely to transfer of property ownership. home-builders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning 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) m str o u r c tg tu a r g e e s d ) End of period fore­ closure Total 30 days 60 days o 9 r 0 m da o y r s e 1961......................................... 73.1 .37 1962......................................... 86.4 42 1963......................................... 98.2 45 1961......................... 3.10 2.27 .50 .33 .29 1962.......................... 3.04 2.26 .50 .29 .30 1964......................... 108.6 48 1963......................... 3.30 2,32 .60 .38 .34 1965......................................... 116.7 49 1964........................ 3.21 2.35 .55 .31 .38 1966........................................ 117.5 48 1965 ......................... 3.29 2.40 .55 .34 .40 1967......................................... 110.5 .44 1966......................... 3.40 2.54 .54 .32 .36 1967......................... 3.47 2.66 .54 .27 .32 1965—11................................. 30.1 52 in 29,1 50 1965—H................... 3.00 2.18 .52 .30 .38 IV............................... 29.6 .50 HI................. 3.20 2.30 .56 .34 .38 IV................. 3.29 2.40 .55 .34 .40 1966—1................................... 28.8 .48 II.................................. 30.8 .51 1966—I..................... 3.02 2.13 .55 .34 .38 ..............2..9....3............. .48 .........2....9..5.... 2.16 .49 .30 ,38 IV............................... 28.6 .46 Ill................. 3.09 2.25 .52 .32 .36 IV................. 3.40 2.54 .54 .32 .36 1967—1................................... 29.5 .48 II. ................................ 29.0 .47 1967—1.................... 3.04 2.17 .56 .31 .38 HI................................ 27.2 .43 H................... 2.85 2.14 .45 .26 .34 IV................................. 24,9 .40 HI.................. 3.15 2.36 .52 .27 .31 IV................. 3.47 2.66 .54 .27 .32 1968—1................................... r24.4 .38 IP'............................... 24.3 .38 1968—1.................... 2.84 2.11 .49 .24 .32 Il................... 2.89 2.23 • 44 . .22 .28 Note.—Federal Home Loan Bank Board estimates of number of nonfarm mortgaged structures at end of period and of non­ Note.—Mortgage Bankers Association of America data from reports on 1- farm properties acquired during period through foreclosure to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held proceedings (excluding voluntary deeds in lieu of foreclosure and by more than 400 respondents, including mortgage bankers (chiefly), commercial defaults on real estate contracts). Data exclude Alaska and banks, savings banks, and savings and loan associations. Hawaii. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-52 CONSUMER CREDIT □ SEPTEMBER 1968 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Auto­ Other Repair Single­ Total m p o ap b e il r e co g p n o a s o u p d m e s r e r e a r n n l d o i z a m n at s o i o 1 d n ­ Pe l r o s a o n n s al Total pa l y o m an e s nt a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939......................................... 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941......................................... 9^172 6,085 2,458 1,929 376 1 ^322 3,087 845 1'645 597 1945......................................... 5i 665 2,462 455 '816 182 1,009 3,203 746 1,612 845 I960......................................... 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961......................................... 57,678 43,527 17,223 11^857 3,191 11'256 14,151 5,136 5,324 3,691 1962......................................... 63'164 48,034 19^540 12^05 3; 246 12,643 15,130 5; 456 5,684 3,990 1963 ........................................ 70,461 54,158 22,433 13,856 3,405 14,464 16,303 6,117 5,871 4,315 1964......................................... 78,442 60,548 25,195 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 191834 3,751 20J10 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 5 320 1967--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 J 36 6^368 5^91 Sept.............................. 95^886 76,039 31,296 19,914 3,742 21', 087 19,847 8,179 6'387 5,281 Oct............................... 96,094 76,223 31,237 20,042 3,746 21,198 19,871 8,189 6,471 5,211 Nov................. 96,802 76,680 31,217 20,340 3,748 21,375 20,122 8,237 6,614 5,271 Dec............................... 99,228 77^946 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 June............................. 101,467 80,363 32,774 21,176 3,727 22,686 21,104 8,519 6,912 5,673 July.............................. 102'439 81,308 33,253 21,356 3,769 22,930 21,131 8,543 6,955 5,633 i Holdings of financial institutions; holdings of retail outlets are in­ hold, family, and other personal expenditures, except real estate mortgage cluded in “other consumer goods paper.’’ loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Note.—Consumer credit estimates cover loans to individuals for house­ Statistics, 1965, and May 1966 Bulletin. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n m c k ia s ­ l fi S n c a a o l n s e . c s e u C n r i e o d n i s t f s i C n u a m o n n e c ­ r e 1 Other 1 Total D st m e o p r e e a n s r t t 2 ­ F s t t u u o r r r n e e s i ­ A s a t p o n p r c e e li s ­ d m A ea o u l b e t i o r l s ­ e 3 Other 1939.............................. 4,503 3,065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941.............................. 6'085 4^480 1,726 1,797 198 759 1 '605 320 496 206 188 395 1945.............................. 2,462 1,776 '745 300 102 629 '686 131 240 17 28 270 I960.............................. 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 6,252 3'013 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 1,749 7’407 3^922 1,152 286 370 1,677 1965 .............................. 68'565 60'273 29,173 16,138 7,512 5,606 1’844 8'292 4'488 1 ,235 302 447 1 ,820 1966.............................. 74,656 65'565 32,’155 16,936 8; 549 6,014 1,911 9,091 n.a. n.a. n.a. 490 n.a. 1967.............................. 77^946 68 ,’273 33,992 16,851 9,169 6,294 1,967 9'673 n.a. n.a. n.a. 506 n.a. 1967—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. 75,889 67,273 33,536 16,755 8',991 6'036 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. 76 223 67 513 33,723 16,698 9,054 6,086 1 952 8'710 n.a. n.a. 506 n.a. Nov................... 76,680 67,763 33,819 16,722 9,113 6,138 1,971 8,917 n.a. n.a. n.a. 506 n.a. Dec.................... 77^946 68^273 33,992 16,851 9,169 6*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 n.a. Feb.................... 77,327 68^15 34,155 16,706 9,094 6,270 1,990 9,112 n.a. n.a. n.a. 507 n.a. Mar................... 77,581 68’570 34,411 16,700 9,172 6,289 1,998 9’011 n.a. n.a. n.a. 514 n.a, Apr.................... 78'345 69^332 34,908 16’790 9',311 6,336 1,987 9',013 n.a. n.a. n.a. 522 n.a. May.................. 79,270 70.231 35,450 16,892 9’475 6,361 2,053 9^039 n.a. n.a. n.a. 531 n.a. 80'363 71,272 35’980 17,095 9,671 6,470 2,056 9^091 n.a. n.a. n.a. 540 n.a. July................... 81,308 72,199 36,521 17,265 9,787 6,552 2,074 9,109 n.a. n.a. n.a. 549 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. * Includes mail-order houses. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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) Aut p o a m pe o r bile O co th n e ­ r R a e n p d a ir Per­ Other Repair End of period Total sumer mod­ sonal Auto­ con­ and Per­ ch P a u s r e ­ d Direct g p o a o p d er s e l r t o n i a o i n z n a s ­ loans End of period Total m pa o p b e il r e s g p u o a m o p d e e s r r m iz lo o a a d ti n e o s r n n ­ l s o o a n n a s l 1939........................ 1,079 237 178 166 135 363 1939................................ 1 197 878 115 148 56 1941........................ 1,726 447 338 309 161 471 1941................................ 1,797 1,363 167 201 66 1945........................ ’745 66 143 114 110 312 1945................................ 300 164 24 58 54 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 51391 860 21761 2 J98 3'798 1961................................ 11,273 6,811 3 ’ 100 161 1*201 1962........................ 19'005 6,184 3’451 2'824 2,261 4'285 1962................................ 12 194 7,449 3 123 170 1 452 1 1 9 9 6 64 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 5 , ' 0 0 2 9 3 4 7 8 , , 3 6 8 9 1 1 4 4 , '7 1 3 02 4 3 3 , , 2 6 1 7 3 0 2 2 , , 3 4 7 5 7 7 4 5 , ’, 9 5 5 4 0 2 1 1 9 9 6 6 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4 7 5 6 23 2 8 8 ,7 2 0 2 1 8 3 3 *8 3 8 8 9 3 1 1 5 4 8 2 2 1 ’0 7 3 5 0 4 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 JOI 2,567 6'952 1966................................ 16 936 9391 4 829 116 2606 1967......................... 331992 11'400 6,569 5',808 2,523 7',692 1967 ............................... 16 851 8 959 5 017 103 2 772 1967—July............. 33,235 11,489 6,451 5,500 2,519 7,276 1967—July..................... 16,747 9,252 4,752 108 2,635 Aug.............. 33’536 111538 6’494 5 ,556 2'536 7,412 Aug..................... 16,755 9,200 4,781 107 21667 S O e c p t t . . .. .. . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 1 ’,7 6 2 3 3 7 1 11 1 , , 4 4 6 9 3 7 6 6 , , 4 51 9 5 0 5 5 , , 6 6 5 19 6 2 2 1 ,5 5 3 3 9 8 7 7 ^ ,5 4 5 93 0 S O e c p t. t . . . . . . . . .. . .. . .. . .. . . . .. . .. .. . 1 1 6 6 ’ ’ 7 6 0 9 1 8 9 9 0 0 7 2 9 4 4 4 8 86 2 3 4 1 1 0 07 7 2 2 ,6 7 9 0 1 4 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 ’617 103 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 F M e a b r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 4, , 4 1 1 5 1 5 1 1 1 1 , , 4 4 0 8 1 9 6 6 , '7 6 4 53 9 5 5 , '8 8 9 6 7 7 2 2^ ,4 4 5 4 9 4 7 7 , , 8 77 3 5 2 F M e a b r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 16 6 ’7 7 0 0 0 6 8 8 8 86 4 5 5 4 4 * ’ 9 9 7 47 7 9 8 3 9 2 2 ’ ’ 7 7 9 9 1 9 Apr.............. 341908 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 21832 June........ 35’980 12,043 7 J01 6J72 2,502 8,162 17 095 9’130 5 028 82 2,855 July............. 36,521 12,248 7,195 6,302 2,532 8'244 July..................... 17,265 9,254 5,’O43 82 2’886 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 goods ization loans Service paper loans End of period Total Com­ O fin th a e n r ­ De­ Other credit mer­ cial part­ retail Credit 1 1 9 9 3 4 9 1 . . 7 9 8 5 9 7 12 81 2 2 3 4 6 1 1 5 4 6 7 6 8 9 5 b c a i n a k l s tu in ti s o ti n ­ s s m to e r n es t 1 outlets cards2 1945. 731 54 20 14 643 1960. 9,074 1,665 771 800 5,837 1939.............. 2,719 625 162 236 1,178 518 1961................................ 91654 1'819 743 832 61257 1941............. 31087 693 152 275 11370 597 1962................................ 101583 2,111 751 815 61906 1945............. 31203 674 72 290 1,322 845 1963. 11,859 2,394 835 870 7,760 1960............. 13,196 3,884 623 941 3,952 436 3,360 1964. 131285 2,699 997 933 8,656 1961............. 141151 41413 723 948 31907 469 3,691 1965 14,962 3J24 1 ,153 1,009 91676 1962.............. 151130 41690 766 927 4,252 505 31990 1966 16'474 3,’545 1,303 11074 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.............. 171894 5,950 1,004 909 41756 635 41640 1967-—July............. 16,799 3,666 1 ,294 1.084 10,755 1965.............. 191319 6,587 11095 968 5,055 723 41891 Aug..................... 16'982 3,715 1 1310 1,100 101857 1966.............. 20,'130 6,'714 1,130 n.a. 874 5,’142 Sept..................... 17.'038 3,723 1 1315 11097 101903 1967.............. 21',282 71064 l’,203 n.a. 1,054 5,420 Oct...................... 17’,092 3,729 1 ,319 1 JOO 10,944 Nov,........... 17,222 3,748 1,326 1,109 11,039 1967—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...................... 17,354 3,731 1 ,336 1 JOI 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 11J43 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 June.................... 18’,197 3,960 1 ,425 1,143 11,669 Feb.. . 20,345 7,098 1,227 n.a. n.a. 1,040 5,634 July............... 18,413 4,007 1 ,'451 1,155 11,800 Man., 20,294 7,136 1,234 n.a. n.a. 1,025 5,661 Apr.. . 20,797 7,246 1,242 n.a. n.a. 1 ,069 5,750 May. . 21,005 7,242 1 ,266 n.a. n.a. 1,092 5,667 Note.-—Institutions represented are consumer finance companies, credit June.. 21,104 7,259 1,260 n.a. n.a. 1,144 5,673 unions, industrial loan companies, mutual savings banks, savings and July... 21,131 7,279 1,264 n.a. n.a. 1 ,227 5,633 loan assns., and other lending institutions holding consumer instalment loans. See also Note to first table on previous page. 1 Includes mail-order houses. 2 Service station and miscellaneous credit-card accounts and home­ heating-oil accounts. See also Note to first table on previous page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-54 CONSUMER CREDIT □ SEPTEMBER 1968 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper O g th o e o r d c s o p n a s p u e m r er mode R rn ep 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.AJ N.S.A. S.A.i N.S.A. Extensions 1961......................................... 48,396 16,007 14,578 2,068 15,744 1962......................................... 55,126 19,796 15,685 2,051 17,594 1963......................................... 61,295 22,292 17,102 2,198 19,703 1964......................................... 67,505 24,435 19,473 2,204 21,393 1965......................................... 75,508 27,914 21,454 2,238 23,902 1966......................................... 78,896 28,491 23,502 2,136 24,767 1967....................................... 81,263 27,221 25,787 2,076 26,179 1967—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............................. 7,479 7,883 2 578 2,875 2,319 2,334 194 232 2,388 2,442 June............................. 7,516 7,693 2 574 2,761 2,364 2,302 180 193 2,398 2,437 July.............................. 7,683 8,206 2 669 2,986 2,363 2,396 198 226 2,453 2,598 Repayments 1961......................................... 47,700 16,472 14,246 2,015 14,967 1962......................................... 50,620 ........ 17,478 14,939 .........1.,.9..9..6... .................. 16,206 1963......................................... 55,171 19,400 15,850 2,038 17,883 1964......................................... 61,121 21,676 17,737 2,078 19,630 1965......................................... 67,495 24,267 19,355 2,096 21,777 1966........................................ 72,805 26,373 21,361 2,060 23,011 1967......................................... 77,973 26,985 .................. 24,293 ........2..,.0..9..6... .................. 24,599 1967—July.............................. 6,551 6,562 2 228 2,240 2,074 2,044 175 176 2,074 2,102 Aug.............................. 6,585 6,682 2 240 2,301 2,079 2,081 171 178 2,095 2,122 Sept.............................. 6,689 6,440 2 280 2,201 2,106 2,046 178 177 2,125 2,016 Oct............................... 6,631 6,728 2 301 2,414 2,093 2,087 170 174 2,067 2,053 Nov.............................. 6,614 6,575 2 240 2,242 2,105 2,077 177 176 2,092 2,080 Dec............................... 6,652 6,563 2 250 2,114 2,167 2,100 167 158 2,068 2,191 1968—Jan................................ 6,691 6,842 2 302 2,314 2,088 2,223 183 183 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............................. 6,869 6,958 2 343 2,401 2,159 2,183 180 182 2,187 2,192 June............................. 6,884 6,600 2 337 2,227 2,183 2,079 169 163 2,195 2,129 July.............................. 7,001 7,261 2 405 2,507 2,185 2,216 177 184 2,234 2,354 Net change in credit outstanding 2 1961......................................... 696 -465 332 53 777 1962......................................... 4,506 ........ 2,318 ............7..4..6.. ..............5..5.. .................. 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—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............................... 542 764 178 386 195 110 14 13 155 255 May............................. 610 925 235 474 160 151 14 50 201 250 June............................. 632 1,093 237 534 181 223 11 28 203 308 July.............................. 682 945 264 479 178 180 21 42 219 244 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 i6 CNew) o£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

SEPTEMBER 1968 □ CONSUMER CREDIT A-55 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks Sales finance Other financial Retail outlets companies institutions Period S.A J N.S.A. S.A.< N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.> N.S.A. Extensions 1961........................................ 48,396 17,711 10,667 12,282 7 736 1962....................................... 551126 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........................................ 751508 291738 151075 18*120 12 575 1966........................................ 78,896 31,114 14,951 18,986 13,845 1967........................................ 81,263 32,314 141675 19 633 14,641 1967—July.............................. 6,776 6,859 2,738 2 857 1,200 1,223 1 601 1 627 1 237 1 152 Aug............................. 61929 71223 2,796 2,945 1,203 1,260 1 677 1 *775 1 *253 1*243 Sept.............................. 61973 6,590 21828 2 636 1 ’206 1 142 1 *675 1 588 1 *264 1 *224 Oct............................. 6,942 61912 2’,767 2,769 1.263 1 284 1*686 1 *606 l’226 1 *253 Nov,................ 7,032 7,032 2,785 2,633 1,283 11283 11698 1 *707 11266 1 409 Dec.............................. 71035 71829 2,814 2’650 11275 11376 1 656 1 837 1 290 1 966 1968—Jan............................... 7,089 6,363 2,884 2 710 1,264 1 141 I 668 1 463 1 273 I 049 Feb.............................. 71245 61372 21967 21725 I ,309 1 1157 1 *732 1 *535 1’237 *955 Mac................. 7,380 7,100 3 038 2,962 1 329 I 289 I 733 I 680 1 ’280 1 169 Apr.............................. 71342 7,694 3,036 3,323 1,289 11336 1 *708 1 *795 1*309 1 *240 May............................. 7,479 7,883 3 091 3’370 1,314 11373 1 809 1 888 I 265 1 252 June............................. 71516 7,693 3,067 3’157 1 292 1 350 1 846 1 ’923 l’3H 1 *263 July.............................. 71683 8,206 3,149 3,479 1,393 1,504 1 ;844 11970 1 .*297 1 1253 Repayments 1961......................................... 47,700 18,294 10,943 11,715 6,749 1962........................................ 50,620 181468 111434 121593 8J25 1963 ....................................... 55,171 20,326 12,211 13,618 9,016 1964 ...................................... 611121 221971 13J6I 14,825 10,164 1965........................................ 671495 25,’663 13,699 161443 11 ,’690 1966........................................ 721805 28,132 14,153 171474 131046 1967........................................ 77',973 30,477 141760 18,677 14',O59 1967 July............................. 6,551 6,562 2,562 2,588 1,215 1,197 1,564 1 ,593 1,210 1,184 Aug............................. 61585 61682 2,566 2,644 1,255 1,252 11578 1 '592 1,186 11194 Sept.......... 61689 6 ,’440 21616 2,535 11252 11196 1 ,615 11532 1 .*206 1 ,’l77 Oct............................... 6,631 6’,728 21600 21683 1,249 11287 1,573 11552 l’,209 1.206 Nov............................ 6,614 6,575 21579 21537 1,263 1’259 11572 1 *577 1 1200 11202 Dec.............................. 6,652 61563 2,640 21477 11246 11247 1 1527 1 ’,629 i 1239 1,210 1968—'Jan.............................. 6.691 6,842 2,624 2,685 1,245 1,217 1,607 1,609 1,215 1,331 Feb.............................. 61679 6‘,512 2’,665 2 587 1 1225 1,226 1 580 1,465 11209 11234 Mar.............................. 6,814 61846 2,720 2,706 1,232 1,295 1,607 1,575 1,255 1,270 Apr............................. 61800 6,930 21750 2.826 11206 1 ’,246 L592 1 ,620 I ’,252 11238 6,'869 6,'958 21751 2 828 I ’252 1,271 1 ',637 1 .633 ( ,229 1 ’226 June........................ ■ • 61884 61600 2,759 21627 1 ’210 11147 I ,656 1 1615 I ’259 i ’211 July.............................. 7,'001 7.261 2,807 2,938 1,302 11334 1 ,657 1 1754 1 1235 1,235 Net change in credit outstanding 2 1961........................................ 696 335 -199 578 -20 j 962 ...................................... 4,506 1,997 921 932 656 1963........................................ 6,124 3,018 1,329 1,276 501 1964........................................ 61384 31065 11239 1,426 654 1965........................................ 81013 41075 11376 11677 885 1966.................... 61091 21982 '798 11512 799 1967........................................ 3,290 11'837 — 85 956 582 1967—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 June............................. 632 1 ,093 308 530 82 203 190 308 52 52 July.............................. 682 945 342 541 91 170 187 216 62 (8 1 Includes adjustments for differences in trading days. payments for some particular holders do not equal the changes in their 2 Net changes in credit outstanding are equal to extensions less repay­ outstanding credit. Such transfers do not affect total instalment credit ments, except in certain months when data for extensions and repayments extended, repaid, or outstanding. have been adjusted to eliminate duplication resulting from large transfers See also Note to previous table. of paper. In those months the differences between extensions and re­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-56 INDUSTRIAL PRODUCTION: SA □ SEPTEMBER 1968 MARKET GROUPINGS (1957-59 - 100) 1957-59 1967 1967 1968 pro- aver- Grouping por­ agep tion July Aug. Sept. Oct. Nov. Dec. Jan, Feb. Mar. Apr, Mayr Juner July Total index...................................... 100.00 158 0 156.6 158.1 156.8 156.9 159.5 162.0 161.2 162,0 163.0 162.5 164,2 165.2 165.6 Final products, total........................... 47.35 158.3 157.1 158.2 157.0 156,9 160.0 161.9 160.8 162.0 163.5 161.7 163.0 164.7 164.7 Consumer goods........................... 32 31 148.4 147.1 148.6 147,0 147.9 150.1 152.8 151.3 152.9 155,0 153.5 154.6 156.2 156,3 Equipment^including defense. ... i£o4 179.6 178.4 178.9 178.6 176,1 181,1 181.5 181.4 181.6 181.8 179.4 181.1 183.0 182.6 Materials............................................. 52.65 157.7 156.1 157.9 156.7 157.4 159.5 162.2 161.7 161,8 162.8 163.1 165.2 166.2 167.0 Consumer goods Automotive products............... 3.21 149.1 155.2 161.1 142.1 145,2 152.4 170.0 164.2 162.7 173.4 168.7 178.1 180. 7 180.5 Autos................................................. 1.82 145.7 160.7 163,7 133.4 135,3 144.5 175.1 163.2 158,0 172,7 166,8 182.3 183.5 183.7 Auto parts and allied products........ 1.39 153.6 148.0 157.8 153.6 158,2 162.9 163.3 165.4 168,8 174.4 171.2 172.6 177,1 176.3 Home goods and apparel........... 10.00 149.9 144.0 147.9 148.7 149.9 152.7 152.4 151.4 153.0 155.3 153.8 153.7 154,8 154.6 Home goods...................................... 4.59 166.0 157.3 163.4 164.1 166,4 170.8 168.3 169.1 171.5 172,9 170.1 170.4 171.8 171.3 Appliances, TV, and radios.......... 1.81 159.5 143.3 155,0 155.9 162.9 168.4 158.7 159.3 162.6 164.8 156.8 156.7 160,5 159,8 Appliances................................. 1.33 163.1 152.2 153,9 153.7 164,2 168.7 160.8 165 1 165.9 168,4 158.9 158.5 163.8 163.8 TV and home radios................. .47 149.2 118.0 158.3 162.0 159,2 167.6 152.7 142.7 153. 1 154.8 151.0 151.7 151,3 148.5 Furniture and rugs........................ 1.26 159,6 156.3 156.9 157.8 159,7 163.4 166.5 166.4 169.2 169,9 170 1 174,6 174.5 174 1 Miscellaneous home goods............ 1.52 179.0 174.8 178.8 179.0 176,1 179.6 181,3 182.9 184.0 185.0 185.9 183.1 183.1 isi;? Apparel, knit goods, and shoes........ 5.41 136.2 132.8 134.8 135.7 136,0 137.4 139,0 136 5 137.3 140.3 139.9 139.5 140,4 Consumer staples................................ 19.10 147.5 147.3 146.9 146.9 147,3 148.4 150.1 149.0 151.2 151.7 150.7 151.2 152.8 153.2 Processed foods.................................. 8.43 130.0 129.0 129.8 129.7 129,5 129.5 130.4 129.5 130.6 131.3 131.2 131.0 132.3 132.7 Beverages and tobacco...................... 2.43 136.4 136.3 137.9 135.8 137,6 139.2 142.2 136.8 141.8 141,7 139.4 136.6 137.5 Drugs, soap, and toiletries................ 2.97 183.0 184.0 178.0 179.8 181,6 183.1 184.3 184.2 185.9 187,5 186,1 190.0 192.0 191^8 Newspapers’ magazines, and books. 1.47 140,1 142.1 140.9 136,2 134.8 135.7 138,5 138.4 141.5 142.1 142.1 145.3 143.6 144.0 Consumer fuel and lighting.............. 3.67 168,3 168.3 168.8 170.5 171,2 174.1 176.8 176.9 179,6 179.4 177.3 177.0 182.2 Fuel oil and gasoline..................... 1.20 132.5 131.3 130,7 138,5 138.1 135.4 137.8 131.8 135.4 136.2 136.3 140.2 142,8 140.7 Residential utilities........................ 2.46 185.7 186.4 187.4 186.0 187,4 192.9 195.8 198.8 201,2 200.4 197,2 194.9 201.4 Electricity........................... 1.72 199.8 200.4 201.6 199,5 201.4 209.1 213.0 215.4 218.4 217.3 212.5 209.0 218.0 Gas.............................................. .74 Equipment Business equipment........................ 11.63 182.9 180,8 180.6 179.8 176.9 183.5 183,4 183.3 182.9 183.3 180.9 182.5 184.0 183.3 Industrial equipment......................... 6.85 170.3 169.0 166.8 166.6 162.3 170.4 168,9 168,0 165.8 167.0 165,9 165.8 167,8 167.3 Commercial equipment..................... 2.42 200.9 201,1 201.9 200,3 199,0 200.9 204,7 204.2 206.1 205,4 204.4 203.6 204,5 201.6 Freight and passenger equipment.., 1.76 215.4 210.2 214,1 210,4 209,9 222.9 228.4 226.4 230.1 227.8 220.8 231.5 234.1 233.9 Farm equipment................................ 61 158.7 148.6 154,3 158,5 157,5 147.2 131.2 148.3 146,4 150.6 140.3 145,1 144,2 Defense equipment............................. 3.41 Materials Durable goods materials..................... 26.73 152,1 149.7 151 8 148.5 149.0 152.3 155,7 154.9 155.4 156.7 157.1 159.4 159.9 160.9 Consumer durable............................ 3.43 144.6 141.8 142'.7 134.9 133,3 143.8 159,4 162.3 162,2 160,1 154.6 163.0 166,2 166.0 Equipment.......................................... 7.84 184.5 181.2 186,3 184.7 184,1 186.0 184.9 183.9 186.7 185, 1 181 .9 183,6 184.7 185.3 Construction...................................... 9.17 140.1 138.1 139.0 140.0 139,3 140.9 143.9 142.9 143.3 145.8 144.4 145.3 144,4 144.4 Metal materials n.e.c........................ 6.29 133,5 132.4 129.8 125.1 128.6 132.2 139.3 137.3 141,4 140.7 144.5 145,0 143,6 152.0 Nondurable materials......................... 25.92 163.4 162.6 164.2 165.2 166,0 166,9 168.9 168.7 168.3 169.1 169.3 171 ’ 172,6 173.3 Business supplies................................ 9.11 152.2 150.9 151.7 153.1 152.5 153.2 154.7 154.4 151,1 150. 1 152.0 154’5 157.4 157,1 Containers...................................... 3.03 148.5 141.7 143.0 150.4 153,7 152.6 152.0 154.3 144.5 142.8 150.9 155.6 158.9 152,2 General business supplies.............. 6.07 154.1 155.5 156.0 154.5 151.9 153.5 156,0 154.5 154,4 153.8 152.6 154.0 156.6 159.5 Nondurable materials n.e.c............... 7.40 201.8 195.8 198.9 203.0 206,8 209.3 216.1 213.5 213.9 215.7 214.9 216.4 216,9 218.0 Business fuel and power................... 9.41 144.0 147.7 149.1 147.3 146,9 146.9 145,6 147.2 149,1 150.8 150,2 151.7 152.8 153.8 Mineral fuels.................................. 6.07 128.9 135.1 137.1 133.4 131.0 130.3 128.7 128,9 131.4 134,3 132.6 133,7 136,4 138,0 Nonresident!al utilities.................. 2.86 183.2 182.1 |82.5 183.8 187.9 188,5 188.3 193.4 194,4 193.6 194.6 197.0 194.6 Electricity................................... 2.32 185.7 184.6 185.1 186.6 191.6 192.2 191.8 197.7 199.0 198,3 199.2 202.0 198.9 General industrial.................. 1.03 182.7 182.9 183.9 185.5 186,6 187.7 188,0 192.0 193.0 191.8 195.4 197.4 193,7 Commercial and other........... 1.21 196.8 194.5 194.5 196.1 204,9 205.3 204,1 212.0 213.8 213,4 212.1 215.7 213,0 Gas............................................ .54 Supplementary groups of consumer goods Automotive and home goods........... 7.80 159.0 156.4 162.5 155.0 157.7 163.2 169.0 167.0 167.9 173.1 169.5 173.6 175.5 175.1 Apparel and staples........................... 24.51 145.0 144.1 144.2 144.4 144.8 145.9 147.6 146.2 148.1 142.9 148.3 148.6 150,2 For footnotes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ INDUSTRIAL PRODUCTION: S.A. A-57 INDUSTRY GROUPINGS (1937-59 = 100) 1957-59 1967 1968 Grouping pro­ 1967 por­ aver­ tion age p July Aug. Sept. Oct, Nov. Dec. Jan. Feb, Mar. Apr. Mayr Juner July Total index................... 100.00 158,0 156.6 158.1 156.8 156.9 159.5 162.0 161.2 162,0 163.0 162,5 164.2 165,2 165.6 Manufacturing, total......................... 86.45 159.6 157.6 159.4 158.1 158.3 161.1 164,0 162.7 163.6 164.6 163.7 165.8 166.7 166.9 Durable........................................... 48.07 163.8 162.5 163.6 161,1 160.7 164.1 168.1 167.2 167.6 168.2 167.2 169.8 170.7 171.2 Nondurable..................................... 38.38 154.4 151.5 154,0 154.2 155.2 157,2 158.9 157.1 158,6 160.0 159.5 160.8 161.6 161.5 Mining........................................... 8.23 123.5 128.0 127.8 124.3 122.4 123.6 122.3 121.6 123,9 126.2 127.1 126.9 128.9 130.5 Utilities.............................................. 5.32 184.4 184,6 185.4 185.6 188.7 191.5 192.6 195.9 197.5 196.8 195.8 196,1 197.7 198.2 Durable manufactures Primary and fabricated metals......... 12.32 145.4 142.8 142.3 141.8 143.3 145.8 151). 3 148.3 150.8 151.7 151.2 155.7 156.4 157.3 Primary metals................................... 6.95 132.5 129.6 129.3 129.2 131.7 135,0 140.9 136.3 139.3 140.2 143,3 148.5 148.9 150.4 Iron and steel................................ 5.45 126.8 122.3 124.3 125.6 127.7 133.3 140.9 134.2 137.8 140.8 143.1 146.4 148.7 151.5 Nonferrous metals and products.. 1.50 153,1 155.3 144.2 141.1 142.8 142.2 145.3 145.6 154,1 151.3 154.5 161 .2 150.4 157.2 Fabricated metal products................ 5.37 162.0 159.8 159.1 158.1 158.2 159.8 162.4 163.9 165.7 166.6 161.4 165.0 166.1 166.3 Structural metal parts.................... 2.86 158,1 156.1 156,8 156,0 156.4 158,8 160.0 159.4 160,9 162.7 156,9 159.8 161.6 160.3 Machinery and related products........ 27.98 177.6 177.5 179.6 175.0 173.4 177.8 181.7 181.6 181.5 182.3 179.2 181.4 183.1 183.7 Machinery.......................................... 14.80 183.4 180.0 182.8 182.2 179.6 183.2 182.2 183.4 183,2 183.3 179.4 179.9 181.0 181.8 Nonelectrical machinery............... 8.43 183.4 182.2 182.6 182.1 177.2 180.9 179.5 180.7 180,6 180.2 176.9 176.6 177.7 178.6 Electrical machinery..................... 6.37 183.3 177.1 183.2 182.4 182.8 186.3 185.8 186.9 186.6 187.3 182.8 184,2 185.4 185.9 Transportation equipment......... 10.19 166.0 170.8 171.9 159.2 159.2 165.6 177.5 175.6 175.1 177.6 175.3 180.4 182.6 183.0 Motor vehicles and parts.............. 4.68 147.0 156.7 158.0 129.4 128.6 141.4 166.9 162.2 161.1 167.8 164.8 173.6 174.2 174.2 Aircraft and other equipment.... 5.26 182.2 182.6 183.6 184.3 185,2 186.0 186.3 186,8 186.5 185.4 183.5 185.4 188.6 188,8 Instruments and related products... 1.71 184.8 182.9 183.2 183,1 183.2 185.4 186.3 186.7 184.7 183,8 181 .4 181 .2 181.3 181.2 Ordnance and accessories.......... 1.28 Clay, glass, and lumber..................... 4.72 130.6 127.3 126.7 129.6 131.4 132,4 137.0 132.5 130.7 128.8 138,0 137.7 136.7 135.9 Clay, glass, and stone products........ 2.99 138.7 134,1 136.9 138.4 139.7 139.2 143.6 140.8 137.3 131.0 146.1 146.4 145.0 143.1 Lumber and products............. 1.73 116.5 115,5 109.2 114.3 1 17,0 120.6 125.7 118.1 119,3 125,0 123.9 122.7 122.5 123.5 Furniture and miscellaneous............... 3.05 162.6 159.1 159.9 161.4 160.9 161.5 163.3 165.2 166.9 166.9 166.5 169.8 169.4 168.1 Furniture and fixtures....................... 1.54 167.8 162.7 164.8 166.3 166.6 167,8 170.7 171.3 173,0 173,7 174.1 178.9 177.7 175.2 Miscellaneous manufactures.... .... 1,51 157.4 155.4 154,9 156,4 155.0 155.1 155.7 158.9 160.7 159.9 158,8 160.6 160.9 160.8 Nondurable manufactures Textiles, apparel, and leather........... 7.60 139.6 135.3 137.6 139.1 140.4 143.0 145.9 141.0 141.9 143.9 142.9 144.1 146.6 145.3 Textile mill products......................... 2.90 142.2 136.8 138,7 141,3 144.9 147,4 151.6 147.6 148,8 149,9 146.3 147.2 149.6 150.7 Apparel products............................... 3,59 147.7 144.2 146,4 146,8 146.2 148,6 150.9 145.2 146.4 148.5 148.9 149,6 150.4 Leather and products........................ 1.11 106.5 103.0 106,5 108.4 109.7 113.3 115.1 110.4 109.7 113.7 114.6 118,0 117.1 Paper and printing........................... 8.17 149.6 148,6 150.3 148.5 148.6 149.9 149.5 148.6 150.6 152.0 151.6 154.5 154.7 154.7 Paper and products.................. 3.43 153.6 149.0 152.8 152.9 154.5 156.1 157.0 155.9 157.1 159.2 159.5 161.1 161 .8 162.0 Printing and publishing.................... 4.74 146.8 148.3 148.6 145.4 144.3 145.5 144.1 143.3 145.9 146.8 145.8 149.8 149.6 149.4 Newspapers.................................... 1.53 134.2 136.1 137.0 135.7 134.0 134.4 129.9 129.9 131.4 133.7 130.8 134.4 134.7 134.7 Chemicals, petroleum, and rubber.... 11.54 189.5 184.0 189.5 191.2 192.8 195.8 199.0 197.7 200.2 201.6 200.9 203.1 203.6 203.8 Chemicals and products.................... 7.58 203.8 201.0 200.7 202.3 205.5 208,0 210.5 211.8 213.8 215.0 215.2 216.6 216.8 217.5 Industrial chemicals....................... 3.84 234.8 227.6 231,4 234,2 238.8 242.3 246.9 250.9 251.8 252.7 256.2 255.5 253.1 Petroleum products........................... 1.97 133.9 132.8 133.2 137.0 137.6 136.8 138.0 134.8 135.7 136.1 137.3 139.9 140.7 139.0 Rubber and plastics products....... 1.99 190.3 170.1 203.1 202.4 199.1 207,5 215.4 206,7 212.3 215,7 209.4 214.3 215.8 .......... Foods, beverages, and tobacco........... 11.07 131.5 130.9 131.0 130.4 131.1 132.2 133.1 132,0 133.1 133.7 133.6 132.9 133.4 133.6 Foods and beverages,................... 10.25 132.4 131,5 131.7 131.2 132.2 133,5 134.1 133.5 133.2 134.5 135.3 134.0 134.3 134.5 Food manufactures........................ 8.64 130.1 129.4 129.0 128.9 129.3 130,2 130.5 130.7 130.7 131 .4 131.9 131.9 132.3 132.5 Beverages........................................ 1.61 144.7 142.8 146.3 143.8 147.5 151.2 153.3 148.2 146.7 151 .2 153.3 145.0 145.0 Tobacco products.............................. .82 120.0 123.6 121.4 120.2 118.0 115.5 120.5 114.4 132.1 122.9 112.1 120.0 122.8 .......... Mining Coal, oil, and gas.............................. 6.80 122.4 128.0 128.8 125.4 123.7 124.5 122.2 121.9 123.2 126.0 124.7 125.6 127.9 129.2 Coal.................................................... 1.16 118.1 122.6 117.2 115.5 112.3 115.3 116.1 113.4 116.8 126.0 124.4 120.4 126.7 126.6 Crude oil and natural gas................. 5.64 123.2 129.1 131,2 127.5 126.1 126.4 123.5 123.6 124.5 126.0 124.8 126.6 128.2 129.7 Oil and gas extraction.................... 4.91 131,4 138.0 141.9 137.7 135.4 133.9 131.7 132.5 134.8 136.2 134,5 136.8 138.6 140.7 Crude oil.................................... 4.25 126,4 133.9 138.0 133.1 130.3 128.7 126.4 127.4 129,7 130.9 128.7 131.2 132.8 135.5 Gas and gas liquids................... .66 163.3 Oil and gas drilling........................ .73 67,9 69.0 58.9 58.5 63.4 76.1 68.0 63.5 55.0 56.7 59.1 57.7 57.5 .......... Metal, stone, and earth minerals..... 1.43 128.8 127.7 123,4 119.1 116.2 119.5 122.7 120.3 127.0 127.4 138.3 133.5 134.2 137.1 Metal mining..................................... .61 119.9 119.7 105,7 95.6 93.8 93.2 95.7 100.0 102.8 108.7 139.9 131.4 130.5 137.5 Stone and earth minerals.................. .82 135.4 133.7 136.6 136.5 132.9 139.0 142,7 135.3 145.0 141.2 137.1 135.0 136.9 136.8 Utilities Electric................................................ 4,04 191.7 191.4 192.1 192.1 195.8 199.4 200,8 205.2 207.3 206.4 204.9 205,0 207.0 Gas..................................................... 1.28 161.2 163.3 164,1 165.1 166.5 166.6 166.8 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

A-58 INDUSTRIAL PRODUCTION: N.S.A. □ SEPTEMBER 1968 MARKET GROUPINGS (1957-59 = 100) 1957-59 1967 1968 pro- 1967 Grouping por- avertion agei1 July Aug. Sept. Oct. Nov. Dec. Jan. Feb, Mar. Apr, Mayr June' July Total index...................................... 100.00 158.0 150.5 157.9 161.1 161.5 161.2 160.7 159,1 162,7 164.6 163.2 165.2 169,0 160.1 Final products, total............................ 47.35 158,3 151.2 156.9 163.3 162.2 161.3 161.0 159.1 162.4 164.8 160.8 162.6 168.9 159.4 Consumer goods................ 32.31 148.4 139.9 147.7 155.7 155.4 152.0 150,3 148.9 153.4 156.2 151.7 153.7 161.4 149.7 Equipment, including defense.... 15.04 179.6 175.3 176.4 179.5 176.8 181.3 183.9 181,0 181.7 183.4 180.4 181 .6 185.1 180,1 Materials............................................. 52.65 157.7 150.0 158.9 159.1 160.8 161.1 160.4 159.1 162.8 1'64.5 165.4 167.6 169, 1 161 .) Consumer goods Automotive products......................... 3.21 149.1 114.2 106.1 148.2 155.6 159.5 177.7 173.0 171.2 183.7 178.7 189.5 194.7 148.6 Autos................... .............. 1.82 145.7 94.8 62.2 140.1 148.8 159.0 192.6 179.5 173.8 193.4 183,5 202.4 208.3 134.1 Auto parts and allied products. .... 1.39 153.6 139.8 163.9 158.8 164,6 160.0 158.1 164,5 167.9 170.8 172.3 172.7 176,7 167,7 Home goods and apparel.................... 10.00 149.9 132.7 149.0 155.0 159.6 157.8 148,0 145.5 159.0 160.6 154.9 153,1 160.8 142.2 Home goods....................................... 4.59 166.0 145.9 159,3 172.0 180,1 180.3 172,6 164,9 177.2 177,1 172,5 170.8 177.5 158,3 Appliances, TV, and radios...... 1.81 159.5 128.0 140.4 165.1 182.2 181.4 160.6 159.1 180.9 176.9 168,7 163.3 171.7 141.4 Appliances................... 1.33 163.1 141.8 134,5 160,4 180.1 178.2 163,4 168.7 187.9 185.3 180 3 167.4 180.3 151 .7 TV and home radios.................. .47 149.2 89.3 157.2 178.2 187,8 190.4 152,7 131 .9 161.1 153.1 135.9 151.7 147,5 112.4 Furniture and rugs......................... 1.26 159.6 148,8 160.5 163.8 168.0 169.4 172.7 162.7 167,2 167.9 165,3 168.0 174.5 165,7 Miscellaneous home goods........... 1.52 179.0 164.8 180.6 187.1 187.7 187.9 186.7 173.8 181.2 184.8 183,1 182.0 186,8 172.3 Apparel knit goods find shops 5.41 136,2 121.5 140,2 140 5 142.3 138 8 127 2 129 0 143 5 146.6 139 9 138 1 146,7 (Consumer staples................................ 19.10 147.5 148,0 154.1 157.4 153.2 147,7 146.9 146.7 147.4 149.2 145.5 148.1 156.1 153.9 Processed foods................................. 8.43 130.0 128,4 137.1 149.7 143.7 134.4 128.2 123.0 122.1 123.8 122.8 125.1 132.3 132.0 Beverages and tobacco...................... 2.43 136.4 142,8 149.3 139.3 141,6 131.9 123.1 120.1 129.8 138.5 141.0 146.7 163.7 Drugs, soap, and toiletries............... 2.97 183.0 179.4 183.9 185.2 186.0 184.0 185.2 182.9 185.9 189.4 183.7 192,8 198.7 187.0 Newspapers, magazines, and books. 1.47 140.1 140.7 142,6 137.4 134.7 133.9 138,2 137.2 140.9 144,2 142.7 144,9 143,0 142.6 Consumer fuel and lighting.............. 3.67 168.3 173.7 176,7 172,3 162.5 163 9 177,8 192.2 187.6 183.2 169 3 165,7 175.5 Fuel oil and gasoline..................... 1.20 132.5 133.6 134.5 138.5 134.5 134.6 141,0 137.5 139.1 134.9 129.3 135,6 141.2 143.1 Residential Utilities ....................... 2.46 185.7 Electricity................... 1.72 199.8 210.4 215,7 203.5 185.3 188.0 213,0 244.1 232.8 226.4 200.4 188.1 204.9 Gas.............................. .74 Equipment Business equipment............................ 11.63 182.9 177.4 178.0 181.1 177.3 182.2 184.9 182.1 183.0 185.7 182.7 183.6 187.2 180.7 Industrial equipment......................... 6.85 170.3 167.3 166.3 168.1 161,3 168.9 170,8 166.7 165.0 167.2 165.9 166.0 169.5 165,6 Commercial equipment..................... 2.42 200.9 198.3 201,9 203.3 202,4 205.9 209.2 204.4 204.7 203.6 200.5 201.2 205.1 198.8 Freight and passenger equipment. .. 1.76 215.4 202.8 205.5 212.5 215. 1 218.4 226.1 221.9 230.1 238.1 232.9 238.4 243,5 229.2 Farm equipment................................ .61 158.7 134.9 135.8 148.6 147.9 132.6 128.0 151.0 162.6 170.4 156.7 153,6 152.9 Defence equipment............................. 3.41 Materials Durable goods materials..................... 26.73 152.1 145.0 152.5 152.0 152.6 153.7 154.3 151.7 156.1 157.7 158.8 162.4 164.7 156.2 Consumer durable............................. 3.43 144.6 123.4 147.0 133.6 135.3 148.1 167.4 168.0 164.6 164.9 159.2 167.9 169,5 151 .9 Equipment.......................................... 7.84 184.5 175.6 180.7 182,9 183,5 186,2 187.7 185.6 188.4 187.1 183.9 184.9 186,5 179.6 Construction.................................... 9.17 140.1 143.6 148.7 148 4 147.0 142.0 135.3 129.0 134.7 139.2 143.0 147.5 154,6 150.2 Metal materials n.e.c......................... 6.29 133.5 120.5 126,0 128.9 131.7 133.3 133.2 133.7 142.7 144.1 150.3 153.0 149.6 138.3 Nondurable materials......................... 25.92 163.4 155.2 165.4 166.4 169.3 168,7 166.7 166.7 169.7 171.5 172.2 173.0 173.7 166.0 Business supplies................................ 9.11 152.2 141,5 151.9 154.9 158,6 155.3 151.6 149.0 150.6 152.9 156,4 157.1 159.0 147.3 Containers....................................... 3.03 148.5 138.2 153.0 155 5 161.5 148.3 141.4 146.6 142,8 143.5 156,3 157.2 163.8 148,4 General business supplies.............. 6.07 154.1 143.1 151.3 154.5 157.2 158.9 156.8 150.2 154.4 157,6 156.4 157.1 156.6 146.7 Nondurable materials n.e.c............... 7.40 201.8 184.6 198.9 203.0 210.9 213.5 211.8 212.4 218.2 220.0 221.3 221.8 220.4 207.3 Business fuel and power.................... 9.41 144.0 145.3 152.1 148.7 146.9 146.3 145,8 147.9 150.1 151,2 148.9 150.1 151,2 151.7 Mineral fuels................................ 6.07 128.9 128.1 135.5 131.9 131.5 131,5 130.3 130.9 135,6 137.2 134,3 133.8 132,8 131,2 Nonresidential utilities.................. 2.86 183.2 Electricity.................. 2.32 185.7 193.9 201,8 197.2 190.2 186.3 187.8 194.4 190.8 191.8 189.8 195,3 202.9 General industrial.................. 1.03 182.7 182.0 189.4 188 3 187,0 187.7 186.1 191.0 187.0 190.8 192.9 198,4 197.6 Commercial and other .... 1.21 196.8 213.0 221.7 214.1 202.0 194.0 198.0 206.7 203. J 201.9 196.2 202. 1 217.3 Gas ..................................... .54 Supplementary groups of consumer goods Automotive and home goods............ 7.80 159.0 132.9 137.4 162.2 170.0 171,7 174.7 168.3 174.7 179.8 175.1 178.5 184.6 154.3 Apparel and staples........................... 24.51 145.0 142.2 151.1 153.7 150.8 145.7 142.5 142.8 146.6 148.7 144.2 145.9 154,0 .......... For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 a INDUSTRIAL PRODUCTION: N.S.A. A-59 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1967 1968 Grouping pro­ 1967 por­ aver­ tion age'’ July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr June July Total index.................................. 100.00 158 0 150.5 157.9 161.1 161.5 161.2 160.7 159.1 162.7 164.6 163.2 165 2 169 0 1 60 1 Manufacturing, total.......................... 86.45 159 6 150.5 158.3 162.6 163.7 163.5 162.6 160.1 164.2 166 4 161 I 167 4 17/ 2 I AO 4 Durable.......................................... 48.07 163'8 154 7 158 9 163.8 164.4 167 1 169.3 166.1 168 9 170 5 169 4 172*1 175*4 165 6 Nondurable.................................... 38.38 154 4 145.1 157.4 161.2 162.9 159 0 154.2 152.5 158.1 1612 159 8 161 / 166*1 154 6 Mining............................................ 8.23 123 5 124.8 129.0 125.6 124.7 124,2 121,4 120.2 123.7 125 3 \77 3 128.6 128*7 127'.7 Utilities............................................... 5.32 184'4 Durable manufactures Primary and fabricated metals...... J 2.32 145.4 135.1 142.2 145.1 146.0 147.9 149 3 147.8 152.9 154.9 154.8 158,3 159 8 148 7 Primary metals................... 6.95 132 5 117.9 125 4 129.2 133.0 136 3 136.7 138 3 147.2 148 9 151.5 153 7 1511 1 36 9 Iron and steel..................... 5 45 126 8 111.9 120.6 125^6 129.6 134^6 137 4 1369 144,7 147 8 148 8 149*3 148*7 1 35'6 Nonferrous metals and products.. 1.50 i 53.’ t 139.8 142.8 142J 145.5 142.2 134.3 143.1 156.4 153.0 161.3 1697 159^7 141.' 5 Fabricated metal products................ 5 37 162 0 157 4 163 9 165 7 162.9 163 0 165 6 160 0 160 2 162 6 159 0 164,2 171 1 1 63 8 Structural metal parts................... 2.86 1 58 1 156 1 160 7 162.2 161.1 161 2 161.6 156 2 1 54 5 156 4 1 52 2 159 0 164'8 160 3 Machinery and related products........ 27.98 177.6 166,9 169.1 175.8 176.2 180.8 185.7 182.9 184.4 185.9 182.0 184,4 187.7 176,1 Machinery..................................... 14 80 183 4 173 7 111 2 182,6 181.4 185 2 184 I 182 7 185 6 185 8 182 4 182 4 185 8 176 6 Nonelectrical machinery................ 8.43 183 4 177* 6 175 8 179 7 174 0 179 8 180 8 180 7 183 1 185 2 182 2 181 0 183*7 176*0 Electrical machinery...................... 6.37 183*3 168*5 1789 186 4 191.3 192.3 188 3 185*3 188 8 186 6 1 82 6 184 1 1 88 5 177*3 Transportation equipment......... 10.19 166*0 151*4 150 8 160*8 163.6 170 5 185.0 180 4 179 8 183 9 179 0 185 3 1 880 170 0 Motor vehicles and parts........ 4.68 147*0 1195 116*0 134^0 137.2 149.1 176.1 171 1 168 6 178 1 171.3 184.1 188* 3 151*3 Aircraft and other equipment.. .. 5.26 182.2 178.2 180.3 183.6 186.1 188.8 192.8 188.7 189.3 188.2 184.4 184.7 186,0 184.3 Instruments and related products... 1.71 184.8 181.1 184.7 185.1 185.2 186.9 188.5 184.5 183.8 182.9 178,7 179,4 183.1 179.4 Ordnance and accessories................. 1.28 Clay, glass, and lumber. ........... 4.72 J10 6 133 5 139 1 138 7 139.2 133 9 125 6 119.0 12? 2 124 8 J17 6 139 2 146 7 142 5 Clay, glass, and stone products..... 2.99 1387 143^9 149^5 146h 147.4 143*4 134.6 126.7 I25di 126’4 145*5 148^7 155^0 153.*5 Lumber and products...................... 1 .73 116 5 115 5 121 2 125 7 125.2 117.6 110.0 105,7 116 3 121 9 F3 9 122 7 131 1 123 5 Furniture and miscellaneous............... 3,05 162 6 154 8 164 5 167.4 169.4 169.3 167.3 158.7 162 9 163 8 16^ 2 165.9 170 4 163 6 Furniture and fixtures...................... 1.54 167’ 8 160* 3 169 4 171 3 172.9 172.5 177.2 167.9 171 3 1716 169 4 173.5 179 ( 172.6 Miscellaneous manufactures............. 1.51 157.4 149^2 159.5 163,4 165.8 166.0 157.3 149.4 154*3 155^9 154^8 158.2 161 ^7 154,4 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.6 121.9 142 0 142.6 146.9 144.7 136.2 137.9 149.7 152 4 145 8 144.3 150.9 130.9 Textile mill products........................ 2.90 142.2 124 2 142*2 144.1 152,1 151.1 144.0 146.9 152 5 155*1 149*2 151,6 156 3 1 37.6 Apparel products............................. 3,59 147.7 129' 1 150*8 151.6 153.5 150.1 138.8 139 4 157.4 160*4 153 4 148.9 157*2 Leather and products........................ I. H 106 5 92*7 113'4 110 0 112.4 111.0 107.4 109. 8 117 3 119*4 112*3 110 9 116 5 Paper and printing.............................. 8.17 149.6 139 7 149 0 150 5 156.3 153.1 146.1 146.3 151.2 155 4 156 0 156.4 156 2 145.4 Paper and products........................... 3.43 153.6 137*1 1543 155.2 166.5 156.9 144.4 155.1 161.0 164 0 165 9 163.5 166 6 149.0 Printing and publishing..................... 4.74 146 8 141 6 145*2 147 2 149.0 150.3 147 3 139,9 144.2 149 2 148*8 151.2 1 48 8 142 8 Newspapers.................................. 1 53 134.2 1184 125 4 135 0 143.8 147.8 133 1 119 5 126 1 1 37 0 I 39 3 143 3 1 354 117 2 Chemicals, petroleum, and rubber.... 11.54 189.5 177.5 190.8 194.7 197.2 196.4 197.6 195.1 201.9 203.7 203.5 206,8 208.8 196.1 Chemicals and products................... 7,58 203.8 194 6 202 3 206 1 209.0 210.0 211 2 208.2 215 4 217 7 218 9 222.0 221 ,6 210,7 Industrial chemicals...................... 3.84 234.8 219.6 230 2 237 7 243.6 248.4 251 8 247,1 255.6 255 2 261 3 260,7 254.4 Petroleum products........................... 1.97 133.9 139 8 140*3 142 5 139.0 135.0 134 7 130.8 I 33.0 1313 1318 139 9 144.9 146.4 Rubber and plastics products........... 1.99 190.3 149.7 197 0 203*0 210.0 205.4 207.9 208.8 218,7 222 4 215 9 215.4 223,4 Foods, beverages, and tobacco........... 11.07 131.5 131.3 139.5 146.9 143.1 134.1 127, 3 122.7 124.2 127.2 126.8 130.0 139.2 134.4 Foods and beverages......................... 10.25 132.4 133 I 140 1 148 6 144.2 135.4 129.7 123.5 123,6 127 7 128 0 130.5 139.8 136.5 Food manufactures....................... 8.64 130.1 128 1 136*7 149 0 143.5 134.8 128 5 123.5 122,6 124 0 122 9 125,3 132.3 131.7 Beverages........................................ 1,61 144.7 159 7 1584 146*7 148.2 139.1 135,7 123.6 129.1 147 4 155 8 1 58.1 1 80.1 Tobacco products.............................. .82 120.0 109.4 131.4 124^9 128.5 117.8 98.1 113,1 131 4 121 1 HL9 124,3 131,4 Mining Coal, oil, and gas............................... 6.80 122.4 121.9 127.7 124 4 124.4 125.6 123.6 123.8 126.9 128.2 125.9 125.4 124.6 123.2 Coal.................. ...... 1 16 118 1 99 9 123 3 122 2 122 4 120 0 114 0 111 1 118 2 1 27 0 125 3 1 21 6 118 3 105 2 Crude oil and natural gas................. 5^64 123^2 126*4 128*6 124*9 124.8 126^7 125^6 126,4 128 7 128 5 126 0 126^2 125/7 126*9 Oil and gas extraction................... 4.91 131.4 134.8 138,3 134*1 133.7 134.3 134.1 135.6 139.8 139.5 136 4 136.6 136.2 137.4 Crude oil.. 4.25 126.4 131.2 135.2 130.4 129.0 128.7 127.7 129.3 133.6 133.5 130.8 131,9 131 .5 132.8 Gas and gas liquids................... .66 163.3 Oil and gas drilling,...................... .73 67.9 69 5 62.6 62 1 65.0 75.7 67.9 64,5 54.2 53 7 56 0 55.7 56.3 Metal, stone, and earth minerals..... 1.43 128.8 139.1 135.3 131.4 126.3 117.6 111.2 J 03.2 108.4 111.6 134.1 143.7 148.3 149.1 Metal mining..................................... .61 119 9 128.1 114 2 108 0 100.4 86.7 86 1 88,0 92 5 96 7 130 I 144.5 147,5 147,1 Stone and earth minerals.................. .82 135.4 147.2 150.9 148*.8 145.5 140.4 129.9 114.5 120.2 122.6 137,1 143.1 148.8 150.6 Utilities Electric............................................... 4.04 191.7 200.9 207.7 199 9 188.1 187.0 198,5 215.6 208.7 206.6 194.3 192.3 203.7 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

A-60 BUSINESS ACTIVITY; CONSTRUCTION □ SEPTEMBER 1968 SELECTED BUSINESS INDEXES (1957-59 = 100, unless otherwise noted) Industrial production Manu­ Prices 4 facturing 2 Ca­ Nonag- Period Total M F a in jo a r l m pr a o r d k u e c t t g s roupi M ng a s te­ Ma g j r o o r u p in in d g u s stry i u p n ( c t t a p i i e m o l c e i n i n z r f t t g a y ) ­ . s t C t t c i r r o o a u o n n c c n ­ t ­ ­ T m r p o t i e u c e l t m o a r u n a y l l ­ t - l — - i E m pl m e o n y ­ t - P ro a l y ls ­ T s re a o t l a t e a i s l l 5 s C um on e ­ r W m c s o o a h m l d o e i l ­ t e y ­ Total g s C o u o o m n d e s ­ r E m q e u n ip t ­ rials Mfg. M in i g n­ U iti t e il s ­ 1951. 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952. 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93,0 106.1 84.5 79 92.5 94.0 1953. 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954. 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955. 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956. 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100.2 92 94.7 96.2 1957. 100.7 99.4 97,0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958. 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74.0 102 97.8 95.2 93.5 98 100.7 100.4 1959. 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 105 101.5 100.1 105.1 105 101.5 100.6 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 90.5 145 121.9 113.5 151.7 148 113.1 105.9 1967* 158,0 158.3 148.4 179.6 157.7 159,6 123.5 184.4 85.3 153 125.7 113.5 155.0 153 116.3 106.1 1967--July.......... 156.6 157.1 147,1 178.4 156.1 157.6 128.0 184.6 149 125.5 112.4 152.2 155 116.5 106.5 Aug.......... 158.1 158.2 148.6 178.9 157.9 159,4 127,8 185.4 84.3 165 126.0 113.2 155.9 155 116.9 106.1 Sept.......... 156.8 157.0 147.0 178.6 156.7 158,1 124.3 185.6 168 125.9 1 12. 1 155.4 156 117.1 106.2 Oct........... 156.9 156.9 147.9 176.1 157.4 158.3 122,4 188.7 171 126.2 112.2 155.2 153 117.5 106.1 Nov.......... 159.5 160.0 150.1 181.1 159.5 161.1 123.6 191.5 84.7 168 127.1 113.8 158.9 154 117.8 106.2 Dec.......... 162.0 161.9 152.8 181.5 162.2 164.0 122.3 192.6 166 127.7 1 14.3 161.2 155 118.2 106.8 1968--Jan............ 161.2 160.8 151.3 181.4 161.7 162.7 121,6 195.9 } *84.9 166 127.7 114.4 161.2 158 118,6 107.2 Feb........... 162.0 162.0 152.9 181.6 161.8 163.6 123.9 197,5 152 128.7 1 14.3 162.8 160 1 19.0 108.0 Mar.......... 163.0 163.5 155.0 181.8 162.8 164.6 126.2 196.8 169 128.8 114.2 163.8 164 1 19.5 108.2 Apr........... 162.5 161.7 153.5 179.4 163.1 163,7 127.1 195.8 | -84.7 164 129.0 114.6 161.4 162 119.9 108.3 May......... 164.2 163.0 154.6 181.1 165.2 165.8 126.9 196. 1 172 129.1 114.7 166. 1 164 120.3 108.5 June......... 165.2 164.7 156.2 183.0 166.2 166.7 128.9 197.7 160 129.5 H 15.3 '167.7 165 120.9 108.7 July.......... 165.6 164.7 156.3 182.6 167.0 166.9 130.5 198.2 187 129.8 rl15.3 ’167.2 170 121.5 109. 1 Aug,». . . . 164.0 164.8 156.1 183.5 163.0 165. 1 130.3 197.7 ............ 130.2 115.2 168.7 171 ........... 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. 3 F.R. index based on Census Bureau figures. Employment and payrolls: Based on Bureau of Labor Statistics data; 4 Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Note,—Data are seasonally adjusted unless otherwise noted. 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 1966 1967 type of construction July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction 1......................... 50,150 52,895>5,032 5,104 4,695 5,053 4,258 3,996 3,714 3,704 5,417 4,878 6,170 5,589 5.956 By type of ownership: Public........................................ 18,152 19,039 1,989 1,824 1,677 1,526 1,435 1,507 1, 300 1,041 1 ,698 1,554 2,036 1 ,860 Private 1................................... 31,998 33,856'J.042 3,280 3,018 3,527 2,823 2,490 2,414 2; 664 3,719 3,324 4J35 3,730 By type of construction: Residential building1................... 17,827 19,536 rl.98O 1,912 1,741 1 ,887 1,717 1,404 1,462 1,495 2,220 2,312 2,543 2,243 2,287 Nonresidential building............... 19,393 20,139 1,749 1,847 1,786 1 ,874 1,585 1 ,550 1,347 1 .251 1,835 1 ,522 2,227 2.030 2,414 Nonbuilding................................. 12,930 13,220 1,302 1,345 1,169 1,292 956 1,042 905 958 1,362 1 .044 1,400 1 .316 1 .255 i 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

SEPTEMBER 1968 □ CONSTRUCTION A-61 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total N fa o rm n­ Buildings Total Mili­ High­ C v o a n & ti s o e n r ­ Other 2 de re n s t i i ­ al Total Indus­ Com­ b O u t i h l e d r ­ Other tary way de m ve e l n o t p­ trial mercial ings * 19593........................... 55,305 39,235 24,251 14,984 2,106 3,930 2,823 6,125 16,070 1,465 5,761 1,121 7,723 1960............................. 53,941 38,078 21,706 16,372 2,851 4,180 3,118 6,223 15,863 1,366 5,437 1,175 7,885 1961.............................. 55'447 38,299 21’680 16,619 2,780 4,674 3’280 5,885 17'148 1 i371 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 1 ^266 6’365 1,524 8,714 19635 ............................ 63,423 44,057 26,187 17’870 2'906 4^95 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.............................. 72'319 50^253 26'268 23'985 5,118 6,739 4^735 7'393 22^066 852 7^550 2,019 11,645 1966.............................. 75 J 20 51 J 20 23,971 27'149 6,679 6^79 5’037 8^54 24;000 769 8,355 2,195 12^681 1967.............................. 76,160 50,587 23,736 26 ,'851 6,131 6,982 4,993 8,745 25,573 721 8,538 2,196 14,118 1967—July................... 75,738 50,380 23,850 26,530 6,133 6,782 4,891 8,724 25,358 769 8,174 2,209 14,206 Aug................... 76,741 51’641 25,015 26’626 6’061 6,576 5,209 8^80 25,100 740 8,155 2,207 13^998 Sept................... 78,253 52,841 25'770 27,071 6'395 6,732 5,077 8,867 25,412 728 8,452 2,145 14^087 Oct.................... 78,883 53’520 26,427 27,093 6,173 6,996 5,064 8,860 25,363 782 8,353 2,158 14,070 Nov................... 79,609 53,946 27,222 26,724 5^81 7,018 5’144 8^881 25,663 776 8,198 2,194 14395 81,207 53,965 27,635 26,330 5,822 6,688 4,885 8,935 27,242 865 9,172 2,226 14,979 82,804 55,254 26,926 28,328 6,330 7,721 5,274 9,003 27,550 816 Feb.................... 84'091 55^599 26,973 28'626 5’740 8,328 5’417 9,141 28’492 895 83,556 55’679 27’322 28'357 5’528 8'258 5^412 9’159 27'877 738 83,814 55'859 27,776 28,083 5,484 8,512 5'100 8'987 27,955 697 83,641 55^354 27,722 27'632 5'275 8,111 5,121 9'125 28’287 82,246 53’898 27,104 26'794 4'852 8,122 4’678 9,142 28'348 July ................. 82,303 53,841 27,246 26^95 4,775 8,'042 4,585 9,193 28'462 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 Note.—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, S.A. Government- (private only) underwritten Private Period Total Metro­ Non­ Total N fa o rm n­ politan p m o e li t t r a o n ­ Total fam 1- i ly fam 2- i ly f M am 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............................. I ,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.............................. 1,510 1'035 475 1,473 964 51 458 37 246 197 49 1966.............................. 1,196 '808 388 1,165 779 35 351 31 195 158 37 1967............................. 1,322 920 402 1 ,292 844 41 406 30 232 180 53 1967—July.................... 1,369 1,356 126 88 39 125 82 5 38 1 20 15 5 1,407 1,381 130 90 40 127 84 4 40 3 23 17 6 Sept................... 1.445 1,415 126 88 37 122 78 4 40 4 20 16 5 Oct,.- 1,496 1,478 137 99 38 135 82 5 49 2 25 19 5 Nov................... 1,590 1,567 120 85 35 118 69 3 46 2 20 15 4 Dec................... 1 ,250 1 ,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.................... 1 337 1 399 87 62 26 85 55 3 26 3 21 17 4 Mar................... 1,511 1 379 129 92 37 127 79 4 43 2 24 20 5 1,591 1 '562 165 119 47 162 98 4 60 3 28 23 5 May.................. 1 '364 1 '345 145 101 44 141 87 4 50 4 26 20 6 ”1'349 Pl,332 3*141 102 39 3’136 81 5 50 7'5 25 20 5 July................... J'l 339 ”1 315 7*143 101 42 »I4O 86 4 51 *'3 24 19 5 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

A-62 EMPLOYMENT □ SEPTEMBER 1968 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Period i p n T o s o N t p t i a t u . u S l l t . a i A n t o i o . o n n n a - l l N ab N o o t . r S in . f A o t . r h c e e T l f S a o o b . r A t c o a e . r l Total E In m n p o l n o a y g e r d i- 1 U pl n o e y m ed ­ U (p n e r m e S r a m . e t A c e n p e . 2 t l n o t y ) ­ Total cultural In agriculture industries 1962........................... 122,981 49,539 73,442 70,614 66,702 61,759 4,944 3,911 5 5 1963......1..2..5..*..1..5..4......... 50^583 74^571 71^833 67,762 63,076 4,687 4 070 57 1964.......................... 127^224 51,394 75,830 73,091 69,305 64,782 4 523 3,786 5*2 1965........................... 129^236 52,058 77 J78 74’455 71,088 66,726 4,361 3,366 45 1966.......................... 131,180 52,288 78,893 75^770 72,895 68,915 3379 2,875 3 8 1967........................... 133,319 52,527 80 793 77',347 74,371 70,527 3 844 2,975 3 8 1967 3-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 3.5 135 ^440 50 986 82,585 79,018 76,048 72'197 3,851 2'970 3.8 July................ 135,639 51,088 82,572 78,985 76,038 72,202 3^836 2^947 3.7 Aug................ 135,839 52,047 82,279 78'690 75,929 72J96 3’733 2^761 3.5 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basts. Monthly data relate 3 Beginning Jan. 1967 data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n n s t t r r a u c c t ­ T tio ra n n & sp o p r u t b a­ ­ Trade Finance Service G m ov e e n r t n­ tion lic utilities 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 J00 9,551 10,871 1967.......................................................... 66'030 19,434 616 3,203 4'271 13*613 3,217 10^060 11,616 SEASONALLY ADJUSTED 1967—Aug............................................... 66,186 19,407 610 3,165 4,288 13,648 3,241 10,110 11,717 Sept.............................................. 66'123 19'285 606 3,182 4^278 13*684 3,251 10,139 11 ,698 Oct.................... 66^286 19^302 603 3 J 84 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 3375 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 19.612 608 3,388 4,342 13’920 3,304 10,405 12,021 Mar.............................................. 67^656 19 607 609 3'330 4,332 13,999 3,311 10,415 12,053 Apr............................................... 67,755 19,657 632 3,313 4’331 14,009 3,323 10,402 12,088 May.............................................. 67'792 19 693 631 3'245 4,281 14,049 3,334 10,425 12,134 June.............................................. 68,039 19’777 632 3 ’ 174 4'336 14*086 3'335 10,467 12,232 July*'. ... ..................................... 68,201 19*782 637 3 J 82 4’339 14*1 19 3.352 10,487 12,303 Aug^........................................... 68’409 19,775 635 3.186 4.366 14,171 3.381 10.541 12,354 NOT SEASONALLY ADJUSTED 1967—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 4,318 14,017 3,260 10,219 12,011 Dec............................................... 67,903 19,609 602 3J34 4,311 (4,618 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 Mar.............................................. 66,713 19 347 594 2'967 4,276 13^658 3,288 10,290 12,193 Apr............................................. 67,422 19,507 626 3,157 4'296 13'910 3^10 10,402 12,214 May.......................................... 67'724 19,569 63! 3,255 4,268 13,959 3,327 10,488 12,227 June................................... 68,724 19397 647 3,387 4,375 14', 139 3,365 10,634 12,280 July'*............................................. 68'358 19,737 651 3,491 4,387 14,114 3,409 10,676 11,893 Aug. J’........................................... 68^596 19,908 650 3; 543 4,418 14,131 3.435 10,667 11,844 _ 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

SEPTEMBER 1968 □ EMPLOYMENT AND EARNINGS A-63 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1967 1968 1967 1968 Aug. June July" Aug." Aug. June July* Aug." Total................................................................................ 14,260 14,523 14,523 14,514 14,338 14,622 14,426 14,599 Durable goods.................................................................. 8,359 8,424 8,468 8,446 8,265 8,518 8,407 8,352 Ordnance and accessories...................................... 182 198 203 203 181 196 200 201 Lumber and wood products................................ . 513 514 519 521 537 536 541 546 Furniture and fixtures........................................ 369 392 387 388 373 392 383 393 Stone, clay, and glass products..................... 495 517 516 517 514 530 532 536 Primary metal industries........................................ 1 ,036 1 ,042 1,047 1 ,032 1 ,042 1 ,066 1 ,058 1,038 Fabricated metal products................................... 1 ,052 1 ,070 1,069 1 ,072 I ,050 1 ,081 1 ,054 1 ,072 Machinery................................................................ 1 ,373 1 ,334 1 ,323 1 ,331 1 ,360 1 ,346 1 ,321 1 ,319 Electrical equipment and supplies......................... 1 ,314 1 ,305 1,304 1 ,321 1 ,308 I ,303 1 ,281 1 ,314 Transportation equipment................................... . 1 ,412 I ,438 1,483 I ,440 1 .273 1 ,450 1 ,431 1,298 Instruments and related products........................ 278 275 273 278 280 276 271 279 Miscellaneous manufacturing industries............... 335 339 344 343 347 342 335 356 Nondurable goods............................................................ 5.901 6,099 6,055 6,068 6,073 6,104 6,019 6,247 Food and kindred products................................... 1 ,147 1,204 I ,188 I ,180 I .266 1 ,190 I ,218 1 ,302 Tobacco manufactures.......................................... 74 73 73 76 79 63 63 82 Textile-mill products............................................... 845 877 877 876 852 886 868 883 Apparel and related products............................... 1 ,234 1,265 1 .248 I ,249 1 ,255 1 ,270 1,205 1 ,271 Paper and allied products...................................... 531 542 '542 544 537 548 543 550 Printing, publishing, and allied industries........... 662 664 665 669 662 665 663 669 Chemicals and allied products............................... 591 609 608 612 596 613 612 618 Petroleum refining and related industries.............- 1 14 1 18 119 119 1 18 121 123 123 Rubber and misc. plastic products....................... . 403 435 432 438 402 434 423 437 Leather and leather products..........,...................., 300 312 303 305 306 314 301 312 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 Aug. June July" Aug." Aug. June July" Aug." Aug. June July" Aug.1’ Total................................................................... 40.6 40.9 40.9 40.8 114.49 123.30 122.10 121,99 2.82 3,00 3.00 2.99 Durable goods..................................................... 41.1 41.7 41 .5 41 .3 123.30 132.92 131.02 130,92 3.00 3.18 3,18 3.17 Ordnance and accessories........................... 41.7 41.6 4! .2 41.4 131.87 134.37 131.70 132.99 3.17 3.23 3.22 3.22 Lumber and wood products...................... 39.6 40.7 40.7 40.6 95.84 106.30 105.01 106.86 2,39 2.58 2.58 2.60 Furniture and fixtures................................ 40.2 41.1 40.9 40.6 95.06 101.52 99,63 102.18 2.33 2.47 2.46 2.48 Stone, clay, and glass products................. 41 .6 42.0 42.1 41 .8 119.56 127.62 127,32 127,32 2.84 3.01 3.01 3.01 Primary metal industries............ 41 0 42.1 41.9 41 .4 137.42 (50.10 148.75 147.03 3 36 3.54 3.55 3.56 Fabricated metal products......................... 41.5 41 .9 41 .7 41.6 123.97 132.62 130.41 131.36 2^98 3.15 3,15 3.15 Machinery................................................... 42.3 42.0 41 .9 42.1 133.24 141.37 139.36 140.11 3.18 3.35 3,35 3.36 Electrical equipment and supplies........ 40.3 40.6 40.3 40.5 111.76 118.15 116.11 117.97 2.78 2.91 2.91 2.92 Transportation equipment................... 42.1 42,5 42.5 42.1 143.52 155.55 152.15 150.59 3.45 3.66 3.64 3,62 Instruments and related products............. 41 .2 40.6 40.6 40.6 117.55 120.88 119.69 120.69 2,86 2.97 2,97 2.98 Miscellaneous manufacturing industries... 39.3 39.7 39,3 39.3 92.04 99.25 96.61 98.36 2.33 2.50 2.49 2,49 Nondurable goods............................................... 39.7 40.0 39.9 39.8 102.80 109.47 110.00 110.28 2.57 2.73 2.75 2.75 Food and kindred products....................... 40.8 41 .1 40.8 41.1 107.94 115.36 115.92 114.96 2,62 2.80 2.80 2.77 Tobacco manufactures............................... 39.0 38.5 38,0 38.6 87,98 102.31 98.89 95.98 2.25 2.63 2.63 2.48 Textile-mill products.................................. 40.9 41 .3 41 .4 41.0 83.84 90.69 88.97 92.29 2.04 2.18 2.17 2.24 Apparel and related products.................... 35.8 36.4 36.1 36.0 74.42 80.30 79.06 81.76 2.05 2.20 2.19 2.24 Paper and allied products.......................... 42.6 43.0 43.1 43.0 124.41 130.59 132.32 132.93 2.90 3.03 3.07 3.07 Printing, publishing, and allied industries. 38.3 38.2 38.3 38,5 126.28 132.94 132.94 135.06 3.28 3.48 3.48 3.49 Chemicals and allied products................... 41 .5 41 .7 41 .7 41.6 129.17 136,27 136.45 136.54 3.12 3.26 3.28 3.29 Petroleum refining and related industries . 42.9 42.3 42.8 42.2 153.44 158,90 162.75 157.73 3.56 3,73 3.75 3.72 . Rubber and misc. plastic products........... 42.0 41 .7 41 .8 41.4 1 16.89 121.64 121.42 122.30 2.77 2.91 2.94 2.94 Leather and leather products................... 38.2 38.7 38.2 37.8 80.11 87.36 85.91 85.41 2.07 2.24 2.22 2.23 Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-64 PRICES □ SEPTEMBER 1968 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em U s Food Total Rent H ow s o h n m ip e e r­ ­ c F a o o n u i a d l e l l t e r a G i l n c e a i d c s t ­ y o n F i p a n i n e u s g d r h r s a ­ ­ ­ A up p a k p n e a d e r p el T p t r o i a o r n n ta s ­ ­ Total M c ic a e a r d e l ­ s P c o a e n r r a e ­ l r R e a i c e n n r a g e d d a ­ ­ g O s a o e t n o r h d v d e ­ s r tion tion ices 1929......................... 59.7 55.6 85.4 1933 ......................... 45,1 35.3 60.8 1941......................... 51.3 44.2 61.4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58,2 1945 ......................... 62.7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75.0 67.3 1958......................... 100.7 101.9 100.2 100.1 100.4 99.0 100.3 99,9 99.8 99.7 100,3 100,1 100.4 100.8 99.8 1959......................... 101.5 100.3 101.3 101.6 101.4 100,2 102.8 100.7 100.6 103,8 102.8 104,4 102.4 102 4 101.8 I960......................... 103.1 101.4 103.1 103.1 103.7 99,5 107,0 101.5 102.2 103.8 105,4 108,1 104.1 104 9 103,8 1961......................... 104.2 102.6 103,9 104,4 104.4 101,6 107.9 101.4 103,0 105,0 107.3 111,3 104.6 107.2 104,6 1962......................... 105,4 103.6 104.8 105.7 105,6 102.1 107,9 101.5 103.6 107.2 109.4 114.2 106.5 109 6 105.3 1963......................... 106.7 105.1 106,0 106,8 107,0 104.0 107,8 102.4 104,8 107.8 111.4 117.0 107.9 111.5 107.1 1964......................... 108,1 106.4 107.2 107.8 109.1 103,5 107,9 102,8 105.7 109,3 113,6 119,4 109,2 114 1 108.8 1965......................... 109,9 108.8 108,5 108.9 111.4 105,6 107,8 103.1 106.8 111.1 115.6 122,3 109,9 115,2 111.4 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—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....... 117.8 115,6 115,5 113.2 121.9 112.7 109,0 109.3 116,6 118,3 126.2 139.7 116,9 122,0 121.0 118.2 116,2 116.0 113.5 122.6 113.1 108.7 109,7 116.8 117.9 126.6 140.4 117.2 122.2 121.4 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 iii.2 116.6 118,6 127,5 141.9 117.6 123,0 122.1 Mar.............. 119.5 H7,9 117.2 114.2 123.8 113,9 109,3 111 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 June.............. 120.9 119.1 118.7 114.9 126.1 115.4 109,4 112.9 119.9 119,7 129.7 144,4 120.1 125,6 123.5 July............... 121,5 120,0 119.5 H5.I 127.8 115.7 109.5 113.1 119.7 119.8 130.2 145.1 120.4 125.9 123.9 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Proc­ All Farm essed Ma­ Period m c t o i o e m d s i ­ ­ p u r c o t d s ­ f f o a e n o ed d d s s Total t T e il t e e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b 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 c e s . t , ­ e c q a h e n u r i y n d i p - ­ F t e u u t r r c e n . , i ­ N t m m a o l i e l n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l u s a ­ s ­ ment erals ment 1958............................. 100,4 103.6 102.5 99.5 98,9 96,0 98.7 100.4 100.1 97.4 100.1 99.1 100.0 100.2 99.9 n.a. 100.6 1959............................. 100.6 97.2 99,9 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.1 100,4 101.2 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—juiy.............., 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 99.7 113,9 105.2 113.8 114,3 103.6 107.3 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 May................ 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 June.................. 108,7 102.5 114,6 108,8 105,2 118.7 103.7 98.5 99.9 117,2 104.7 111.7 115.0 103.9 108,3 n.a. 111.8 July................... 109,1 103,9 115.9 108.9 105,8 119.5 103,3 98.2 100,7 119,2 104.9 111,4 1 15.2 104,1 108,4 n.a. 111.5 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ PRICES A-65 WHOLESALE PRICES: DETAIL (1957-59= 100) 1967 1968 1967 1968 Group Group July May June July July May June July farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 107.9 123.6 106.4 108.2 Pulp, paper, and products, excluding Grains,................................................. 02 6 86 4 82 0 80.0 building paper and board............... 104 6 106 0 105 2 105 4 Livestock............................................... 107 4 105.4 106.2 109.5 Woodpulp........................................... 98 0 98 0 98 0 98 0 Live poultry..,................................... 91 9 85 4 89.6 93.8 Wastepaper.......................................... 76 2 98 2 103 1 110 5 Plant and animal fibers...................... 70 9 75.8 76.0 76.0 Paper.................................................... 110 9 113*5 112 7 113 0 Fluid milk............................................. 121 3 128.3 129.4 130.7 Paperboard........................................... 97 3 91 -7 90 6 90 6 Eggs...................................................... 86.0 72.6 88.3 91.4 Converted paper and paperboard.... 104 7 106 4 ]05 3 105 3 Hay and seeds..................................... 117 I 114 1 112.9 113.2 Building paper and board.................. 91 5 92 1 92.’3 92 1 Other farm products............................ 99 P 101.8 101.6 101.8 Processed foods and feeds: Metals and metal products: Cereal and bakery products.......... 116 9 1 17- 1 1 17-0 118.4 Iron and steel...................................... ’’103 3 104 9 104 8 104 8 Meat poultry and fish........................ 100 9 107 0 |09 8 113.6 Steelmill products. .............................. r 105 5 107 9 108 0 108 0 Dairy products. ................................... 122 0 128 9 128 7 128 8 Nonferrous metals............................... 118 6 124 I 123 6 122 3 Processed fruits and vegetables........... 107 0 114 6 114 8 114.7 Metal containers................................. 111 7 116 9 116 9 116 8 Spgar and confectionery . ............. 113 7 114 2 116 0 116 4 Hardware............................................ 113 8 116 7 116 8 116 9 Reverages and beverage materials . 106 4 100 4 109 4 109 5 Plumbing equipment........................... 110 0 114 6 114 1 114 1 Animal fats and oils............. 77 4 *66*6 *63 5 64.2 Heating equipment............................. 92 6 94 7 95 3 95 3 Crude vegetable oils............................. 86 8 92.7 87.5 84.5 Fabricated structural metal products. 105 1 106 7 107 5 107 6 Refined vegetable oils.......................... 88. 3 98.9 94,4 93.5 Miscellaneous metal products............ 1 138 1 15.5 1 15P 115 7 Vegetable oil end products................. 101.3 100.2 100,2 100.2 Miscellaneous processed foods........... 113.1 113.9 114.5 114.7 Manufactured animal feeds................ 123.2 117.8 119.4 119.4 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip,... 121.9 126.3 126.5 (26.8 Construction machinery and equip.,. 122. 1 129.4 129.4 129.2 Cotton products................................... 98 9 104.9 104.7 105.2 Metalworking machinery and equip.. 123.9 128.0 128.2 129.1 Wool products...................................... 103.3 103.5 103 8 103.9 General purpose machinery and Man-made fiber textile products........ 85.5 89.7 '89.9 90.4 equipment. ...................................... 113.2 117.0 117.2 117.3 Silk yarns............................................. 164 8 183.8 184.0 182.5 Special industry machinery and Apparel................................................ 107.1 109 4 110.1 110.7 equipment (Jan. 1961= 100)........... 116 3 121 8 121 9 L22d) Textile housefurnishings................... 105 3 110.6 110.6 110. 5 Electrical machinery and equip.......... 101 7 102 9 102 7 102 7 Miscellaneous textile products............ 117.1 110.1 112.4 113.8 Miscellaneous machinery................... 109 1 114 2 114 3 114 3 Hides, skins, leather, and products: Furniture and household durables: Hides and skins.................................... 93.4 98.2 95. 1 101.5 Leather.................................................. 100 5 112 5 112.8 113 8 Household furniture............... 112 6 116 9 117 0 117 2 Footwear.............................................. 12t 4 127 0 127 1 127.3 Commercial furniture....................... 1119 115 1 1 15 6 115 9 Other leather products......................... 1 12'9 112.5 112.6 112.5 Floor coverings.................................. 92 9 QS [ 95 0 95 0 Household appliances......................... 90*1 92.2 92.0 92.4 Fuels and related products, and power: Home electronic equipment,........... . 8 1 8 Other household durable goods......... 1 (6.6 124.5 124.5 124.5 Coal....................................................... 103 0 105.2 105.3 105.4 Coke..................................................... 112.0 117.0 117.0 117.0 Gas fuels (Jan. 1958= 100).................. 131.8 123.6 123.3 120.8 Nonmetallic mineral products: Electric power (Jan. 1958= 100)......... 100.6 101.3 101.3 101.2 Crude petroleum....................... ■ ■ 08 4 99 0 99 1 99 4 Flat glass............................................. 104 5 109 4 110 5 Petroleum products, refined ......... 103.3 100.5 103*1 102.8 Concrete ingredients.......................... 106 0 109 I 1 i 109 4 Concrete products............................ 105 8 107 6 108 I Chemicals and allied products: Structural clay products excluding refractories....................................... 109.9 112.5 112.3 112.5 Industrial chemicals. ......................... 07 T 99 0 98 6 98 2 Refractories......................................... 104 9 IP 5 no s 1 17 5 Prepared paint...................................... 108 8 114 4 114 4 1144 Asphalt roofing.................................... 91 6 97 6 07 6 Paint materials.................................... 90*9 92.4 92 4 92 3 Gypsum products......................... 100 7 105 I 105 1 105 0 Drugs and pharmaceuticals................. 94 1 93.4 93 5 93 4 Glass containers................................... 101 1 109 7 10Q 8 109 8 Fats and oils, inedible, ..................... 77* 1 78.4 72.8 69.1 Other nonmetallic minerals................ 102 2 103.7 105.1 105.2 Agricultural chemicals and products.. 103.5 101.6 101.3 101.3 Plastic resins and materials................. 90.0 82.3 81.0 81. 1 Other chemicals and products....... 108.7 1 10.0 110.5 110.4 Transportation equipment: Rubber and products: Motor vehicles and equipment.......... 101.3 104.2 104 5 104.5 Railroad equipment (Jan. 1961= 100). 102.9 105.4 105.4 106.9 Crude rubber........................................ 85 7 84.5 85.2 85.0 Tires and tubes..................................... 94.0 98.7 98 7 100 9 Miscellaneous rubber products........... 101.6 106.9 106.9 106.9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms. ammunition..................................... 105.6 108.2 108.2 108.7 Lumber.................................................. 108.3 125.3 125.0 127.7 Tobacco products............................... 1(4 8 1(4.9 114 9 (14 9 Mill work............................................. 112. i 1 17.8 118.3 118.3 Notions................................................ 100 8 108.1 ios 1 1010 Plywood................................................ 89 4 97.3 98.2 101.3 110 1 113 8 113 8 112 8 Other wood products (Dec. 1966= 100) 102.0 106.3 106.3 106.6 Other miscellaneous products........... 108,3 110.6 110^6 hop Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classi­ incorporate (t) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-66 NATIONAL PRODUCT AND INCOME □ SEPTEMBER 1968 GROSS NATIONAL PRODUCT (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 II 111 IV 1 II Gross national product.................................... 103.1 55.6 124.5 284.8 590.5 632.4 684.9 747.6 789.7 780.2 795.3 811.0 831.2 851.6 Final purchases................................................ 101.4 57.2 120.1 278.0 584.6 626.6 675.3 732.8 783.6 778.0 789,9 802,7 829.1 841.6 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 375.0 401.2 432.8 465.5 492.2 490.3 495.5 502.2 519.4 527.6 Durable goods.............................................. 9.2 3.5 9.6 30.5 53.9 59.2 66.3 70.5 72.6 73.4 73. 1 74.2 79.0 80.9 Nondurable goods........................................ 37.7 22.3 42.9 98.1 168.6 178.7 191.1 206.7 215.8 215.3 216.4 218.4 226.5 228.2 Services....................................................... 30.3 20.1 28.1 62.4 152.4 163.3 175.5 188.3 203.8 201.6 205.9 209.6 213.9 218.4 Gross private domestic investment................... 16.2 1.4 17.9 54.1 87.1 94.0 108.1 120.8 114.3 107.6 114.7 121.8 119.7 127.4 Fixed investment.......................................... 14.5 3.0 13.4 47.3 81.3 88.2 98,5 106.1 108.2 105.4 109.3 113.5 117.6 117.4 Nonresidential.......................................... 10.6 2.4 9.5 27.9 54.3 61.1 71.3 81.3 83.6 82.7 83.3 85.0 88.6 87.9 Structures............................................. 5.0 .9 2.9 9.2 19.5 21.2 25.5 28.5 27.9 27.2 21.1 21.1 29.6 28.2 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 34.8 39.9 45.8 52.8 55.7 55.5 55.6 57.3 59.0 59.8 Residential structures............................... 4.0 .6 3.9 19.4 27.0 27.1 27.2 24.8 24.6 22.7 26.0 28.5 29.1 29.5 Nonfarm............................................... 3.8 .5 3.7 18.6 26.4 26.6 26.7 24. 3 24.0 22.1 25.4 27.9 28. 5 28.9 Change in business inventories................... 1.7 -1.6 4.5 6.8 5.9 5.8 9.6 14.7 6.1 2.3 5.3 8.3 2.1 10.0 Nonfarm.................................................... 1.8 — 1.4 4.0 6.0 5.1 6.4 8.6 14.9 5.6 2.2 4.8 7.1 1.6 9.7 Net exports of goods and services............. 1.1 .4 1.3 1.8 5.9 8.5 6.9 5.1 4.8 5.1 5.4 3.4 1.5 0.9 Exports.......................................................... 7.0 2.4 5.9 13,8 32.3 37.1 39.2 43.1 45.8 45.5 46.1 46.0 47.5 49.0 Imports.......................................................... 5.9 2.0 4.6 12.0 26.4 28.6 32.3 38. 1 41.0 40.4 40.6 42.6 46.0 48.1 Government purchases of goods and services. . 8.5 8.0 24.8 37.9 122.5 128.7 137.0 156.2 178.4 177.3 179.6 183.5 190.5 195.6 Federal........................................................... 1.3 2.0 16.9 18.4 64.2 65.2 66.9 77,4 90.6 90.0 91.3 93.5 97.1 100.0 National defense . .............. 13.8 14.1 50.8 50.0 50. 1 60.6 72.4 12.1 12.9 74.6 16.S 19.0 Other.......................................................... 3.1 4.3 13.5 15.2 16.8 16.8 18.2 17.9 18.4 19.0 20.3 21.0 State and local............................................. 7.2 6.0 7.9 19.5 58.2 63.5 70. 1 78.8 87.8 87.2 88.4 90.0 93.4 95.6 Gross national product in constant (1958) dollars...................................................... 203.6 141.5 263.7 355.3 551.0 581.1 617.8 657.1 673.1 669.2 675.6 681.8 692.7 702.3 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 1968, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1967 1968 1929 1933 1941 1950 1963 1964 1965 1966 1967 Item IL 111 IV 1 IP National income................................................ 86.8 40.3 104.2 241.1 481.9 518.1 564 3 620.8 652.9 645.1 656.9 670.9 688.1 704.7 Compensation of employees............................. 51.1 29.5 64.8 154.6 341.0 365.7 393.8 435.6 468.2 461.8 471.5 482.7 496.8 507.1 Wages and salaries....................................... 50.4 29.0 62.1 146.8 311.1 333.7 358.9 394,6 423.4 417.6 426,3 436.4 448.3 457.6 Private........................................................ 45.5 23.9 51,9 124.4 251,6 269.4 289.6 316.9 337.1 332.8 339.4 346.0 355.7 362.8 Military..................................................... .3 .3 1.9 5.0 10.8 11.7 12. 1 14.6 16.3 15.9 16. 1 17.1 17.5 17.8 Government civilian.............................. 4.6 4.9 8.3 17.4 48.6 52.6 57.1 63. 1 70.0 68.8 70.8 73.3 75.2 77.0 Supplements to wages and salaries......... .7 .5 2.7 7.8 29.9 32.0 35.0 41.1 44.8 44.2 45.2 46.2 48.4 49.4 Employer contributions for social in­ surance .............................................. .1 .1 2.0 4.0 15.0 15.4 16.2 20.2 21.5 21.3 21.6 22.1 23.5 23.7 Other labor income.................................. .6 .4 .7 3.8 14.9 16.6 18.7 20.8 23.3 22.9 23.7 24.2 25.0 25.7 Proprietors’ income........................................... 15.1 S.9 17.5 37.5 51.0 52.3 57.3 60.7 60.7 60.5 61.2 61.1 61.8 62.6 Business and professional............................ 9.0 3.3 11.1 24.0 37.9 40.2 42.4 44.8 46.3 46.1 46.6 46.8 47.2 47.8 Farm.............................................................. 6.2 2.6 6.4 13.5 13.1 12.1 14.8 15.9 14.4 14.4 14.6 14.3 14.6 14.8 Rental income of persons................................. 5.4 2.0 3.S 9.4 17.1 18.0 19.0 19.8 20.3 20.2 20.4 20.5 20.7 20.9 Corporate profits and inventory valuation adjustment................................................. 10.5 -1.2 15.2 37.7 58.9 66.3 76.1 83.9 80.4 79.6 80.2 82.3 83.8 88.4 Profits before tax..................... 10.0 1.0 17.7 42.6 59.4 66.8 77.8 85.6 81.6 80.3 80.8 85.4 88.9 91.1 Profits tax liability......................... 1.4 .5 1.6 17.8 26.3 28.3 31.3 34.6 33.5 33.0 33.2 35.1 39.8 40.8 Profits after tax...................................... 8.6 .4 10.1 24.9 33.1 38.4 46.5 51.0 48.1 47.3 47.6 50.3 49.1 50.3 Dividends............................................... 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.7 22.9 23.2 23.5 22.5 23.6 24.4 Undistributed profits............................ 2.8 -1.6 5.7 16.0 16.6 20.6 26.7 29.3 25.2 24.1 24.1 27.9 25.5 25.9 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -.5 -.5 -1.7 -1.7 - 1.2 -.1 -.6 -3.1 -5.1 — 2.7 Net interest........................................................ 4.7 4.1 3.2 2.0 13.8 15.8 18.2 20.8 23.3 22.9 23.6 24.3 25.0 25.8 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

SEPTEMBER 1968 a 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 II Hl IV I II" Gross national product..................................... 103.1 55.6 124.5 284.8 590.5 632.4 684.9 747.6 789.7 780.2 795.3 811.0 831.2 851.6 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 52.6 56.1 59.8 64. 1 69.2 68.4 70.0 71.1 72.3 73.7 Indirect business tax and nontax lia­ bility................................................ 7.0 7.1 11.3 23.3 54.7 58.4 62.5 65.3 69.6 69.0 70.1 71.2 72.8 74.7 Business transfer payments.................. .6 .7 .5 .8 2.3 2.5 2.7 3.0 3.1 3.1 3.2 3.2 3.2 3.3 Statistical discrepancy........................... .7 .6 .4 1.5 — .3 -1.3 -3. 1 -3.3 -3.5 -3.8 — 3.4 -4.2 — 4.7 -4.1 Plus: Subsidies less current surplus of gov­ ernment enterprises............ -.1 . 1 .2 .8 1.3 1.3 2.3 1.6 1.6 1.5 1.3 .5 .7 Equals! National income.................................. 86.8 40.3 104.2 241.1 481.9 518.1 564.3 620.8 652.9 645.1 656.9 670.9 688.1 704.7 Less: Corporate profits and inventory valu­ ation adjustment...... 10.5 -1.2 15.2 37.7 58.9 66.3 76. 1 83.9 80.4 79.6 80. 2 82.3 83.8 88.4 Contributions for social insurance. ... .2 .3 2.8 6.9 26.9 27.9 29.6 38.0 41.9 41.6 42.1 43.0 45.8 46.5 Excess of wage accruals over disburse­ ments .............................................. Plus: Government transfer payments............ .9 1.5 2.6 14.3 33.0 34.2 37.2 41.0 48.6 48.3 48.9 49.7 52.5 55.0 Net interest paid by government and consumer........................................ 2.5 1.6 2.2 7.2 17.6 19.1 20.5 22.3 23.6 23.2 23.5 24.2 24.9 25.7 Dividends.............................................. 5.8 2.0 4.4 8.8 16.5 17.8 19.8 21.7 22.9 23.2 23.5 22.5 23.6 24.4 Business transfer payments.................. .6 .7 .5 .8 2.3 2.5 2.7 3.0 3.1 3. 1 3.2 3.2 3.2 3.3 Equals! Personal income.................................. 85.9 47.0 96.0 227.6 465.5 497.5 538.9 586.8 628.8 621.6 633.7 645.2 662.7 678.1 Less: Personal tax and nontax payments.».. 2.6 1.5 3.3 20.7 60.9 59.4 65.7 75.3 82.5 80.1 83.6 85.6 88.3 91.8 Equals! Disposable personal income............... 83.3 45.5 92.7 206.9 404.6 438.1 473.2 511.6 546.3 541.5 550.0 559.6 574.4 586.3 Less * Personal outlays...... .............. 79.1 46.5 81.7 193.9 384.7 411.9 444.8 478.6 506.2 504.5 509.5 516.1 533.5 541.9 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 375.0 401.2 432.8 465.5 492.2 490.3 495.5 502.2 519.4 527.6 Consumer interest payments............ 1.5 .5 .9 2.4 9.1 10,1 11.3 12.5 13.1 13.1 13.2 13.3 13.4 13.6 Personal transfer payments to for­ eigners ........................................ .3 .2 .2 .5 .6 .6 .7 .6 .8 1.2 .8 .7 .7 .7 Equals: Personal saving.................................. 4.2 -.9 11.0 13.1 19.9 26.2 28.4 32.9 40.2 37.0 40.5 43.4 40.8 44.4 Disposable personal income in constant (1958) dollars........................................................ 150.6 112.2 190.3 249.6 381.3 407.9 435.0 459.2 478.0 476.3 479.5 483.7 491.8 497.3 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 1 tem 1966 1967 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July,’ Total personal income. ....................... 586.8 628.8 629,8 634.2 637.0 638.0 644.9 652.6 654 9 663.0 670.0 '672,6 '678.2 683.7 689.2 Wage and salary disbursements.......... 394.6 423.4 423.4 426.6 428.8 429.6 435.4 444.2 443.0 449.7 452.2 453.2 457.5 462.2 465.7 Commodity-producing industries... 159.4 166.6 165.9 167.7 167.8 167.6 171.0 173.0 173.1 176.6 177.0 176.7 179.3 179.9 180.8 Manufacturing only. .................... 128.0 134.1 133.3 135.3 135.1 134.8 137.5 139.1 140.0 141.6 142.2 141.6 144.3 145.6 146.3 Distributive industries..................... 93.9 100.5 100.9 101.2 102.1 102.4 103. 1 103.8 104.5 105.9 106.5 106.9 107.4 109.7 109.7 Service industries............................. 63.6 70.0 70.4 70.8 71.3 71.6 72.3 73.2 73.6 74.6 75.2 75.5 76.1 77.0 77.7 Government..................................... 77.7 86.3 86.3 86.8 87.6 88.1 89.0 94.2 91.9 92.6 93.4 94.2 94.7 95.5 97.5 Other labor income............................. 20.8 23.3 23.4 23.7 23.9 24.0 24.2 24.4 24.7 25.0 25.2 25.5 25.7 26.0 26.3 Proprietors’ income............................ 60.7 60.7 60.8 61.2 61.5 60.7 61.1 61.3 61.5 61.8 62.3 62.4 62.6 62.7 62.8 Business and professional............... 44.8 46.3 46.5 46.6 46.7 46.5 46.8 47.0 47. 1 47.2 47.5 47.6 47.8 47.9 48.0 Farm................................................. 15.9 14.4 14.3 14.6 14.8 14.2 14.3 14.3 14.4 14.6 14.8 14.8 14.8 14.8 14.8 Rental income...................................... 19.8 20.3 20.3 20.4 20.4 20.5 20.5 20.6 20.6 20.7 20.7 20,8 20.9 20.9 21.0 Dividends............................................. 21.7 22.9 23.5 23.5 23.4 23.2 23. 1 21.1 23.2 23.6 23.9 24,3 24.7 24.3 25.0 Personal interest income.................... 43.1 46.8 46.8 47.2 47.6 48.0 48.5 49.0 49.4 49.8 50.2 '50,8 '51.3 51.9 52.6 Transfer payments............................... 43.9 51.7 52.0 52.2 51.9 52.6 53.0 53.2 54.5 54.9 57.8 58.1 58.2 58.5 58.9 Less: Personal contributions for social insurance..................................... 17.8 20.4 20.5 20.6 20.5 20.7 20.9 21.2 22. 1 22.4 22.4 '22,6 '22.8 22.9 23. 1 Nonagricultural income....................... 566.1 609.3 610.5 614.4 617.1 618.8 625.4 633.0 635.1 643.1 649.9 652.5 658.1 663.4 669.0 Agriculture income............................... 20.7 19.5 19.3 19.8 19.9 19.2 19.5 19.6 19.8 20.0 20.1 20.1 20.2 20.2 20.2 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-68 FLOW OF FUNDS □ SEPTEMBER 1968 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1966 1967 1968 Transaction category, or sector 1963 1964 1965 1966 1967 I II HI IV I II Ill IV I I. Saving and investment 1 Gross national saving......................... 144.5 160.3 181.6 196.7 192.1 192.4 195.2 196.7 202.5 188.2 185.8 193.2 200.2 202.4 1 2 Households.................................... 85.8 98.3 108.9 1 18.6 129.6 116.2 114.2 118.5 125.3 125.3 125.4 129.6 137. 1 138.6 2 3 Farm and noncorp, business........ 13.5 14.5 15.2 15.9 16.8 15.3 15.7 15.7 17.0 17.1 17.0 17.0 16.2 17.3 3 4 Corporate nonfin. business.......... 43.9 50.5 56.6 61.1 61.5 59.2 60.1 61.0 63.9 60.2 60.6 61.8 63.5 60.4 4 5 U.S. Government......................... —. 6 -4.3 1 -.6 -14. 1 .7 2.2 -1.4 -4.0 -12.7 -15.3 -14. 1 -14.3 -9.9 5 6 State and local govt....................... -1.5 -1.4 -2.4 -2.7 -5.6 -2.6 -2.1 -2.3 -3.7 -5.7 -6.7 -5.3 -4.6 -6.1 6 7 Financial sectors............................ 3.5 2.7 3.5 4.5 3.8 3.6 5.1 5. 1 4.1 4.0 4.7 4.3 2.2 2.2 7 8 Gross national investment................. 143.8 158.0 178.2 193.1 188.1 190.1 190.8 193.6 197.8 184.4 179.4 190.7 196.8 196.3 8 9 Consumer durable goods............. 53.9 59.2 66.3 70.5 72.6 71.6 68.2 71.0 71.1 69.8 72.4 73. 1 74.2 79.0 9 10 Business inventories...................... 5.9 5.8 9.6 14.7 6.1 10.9 15.4 12.8 19.8 8.4 2.3 5.3 8.3 2.1 10 11 Gross pvt. fixed investment.......... 81.3 88.2 98.5 106. 1 108.2 105.9 105.6 107.0 105.9 104.6 105.4 109.3 113.5 117,6 11 12 Households................................ 22.4 23.0 22.9 21.5 20.3 23.2 22.4 21.5 18.9 17.6 18.4 21.5 23.6 25,0 12 13 Nonfinan. business................... 57.9 64.3 74.8 83.6 87.0 81 .7 82.2 84.6 86.0 86.2 86.1 86.7 88.9 91,8 13 14 Financial sectors....................... 1.0 .9 .8 1.0 .9 1.0 1.0 1.0 1.0 .8 .8 1.1 .9 .9 14 15 Net financial investment............... 2.8 4.7 3.7 1.8 1.2 1.8 1.6 2.8 1.0 1.6 -.6 2.9 .7 -2.4 15 16 Discrepancy (1-8).............................. .6 2.3 3.5 3.6 4.0 2.3 4.5 3.0 4.7 3.8 6.4 2. 5 3.4 6.1 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 58.5 67.0 72.3 69.9 83.1 84.1 83.2 62.6 49.9 74.3 44.3 104.6 108.9 103.7 17 18 Loans and short-term securities .... 19.0 26.4 33.1 27.4 27.2 26.4 22.7 30.7 29.8 33.8 -16.1 46.8 44.2 51.1 18 19 Long-term securities and mtgs......... 39.5 40.6 39.2 42.5 55.9 57.6 60.5 31.9 20.0 40.6 60.4 57.8 64.7 52.6 19 By sector 20 U.S. Government............................. 5.0 7. 1 3.6 6.3 12.7 10.8 6.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.7 20 21 Short-term mkt. securities........... 1.4 4.0 3.5 2.2 6.4 -1.5 -7.3 7.6 10. 1 9.9 -35.7 30.9 20.7 29.9 21 22 Other securities............................. 3.6 3.0 .2 4.1 6.2 12.3 14.1 -2.7 -7.2 -1.9 14.5 3.9 8.5 4.8 22 23 Foreign borrowers............................. 3.3 4.4 2.6 1.5 4.0 2.7 2.5 -.4 1.2 5.5 3.7 3.9 2.8 4.4 23 24 Loans............................................. 2.2 3.7 1.9 1 .0 2.7 1.3 2.3 -.4 1.0 4.5 2.7 2.2 1.4 2.8 24 25 Securities........................................ 1.1 .7 .8 .5 1.3 1 .4 .2 .2 1.0 1.0 1.6 1.4 1.6 25 26 Pvt. domestic nonfin. sectors........... 50.2 55.5 66.0 62.0 66.4 70.5 73.9 58.0 45.7 60.8 61.9 66.0 76.9 64.6 26 27 Loans............................................. 15.5 18.7 27.7 24. 1 18.0 26.6 27.8 23.4 18.7 19.4 16.9 13.7 22. 1 18.4 27 28 Consumer credit......................... 7.3 8.0 9.4 6,9 4.4 9.3 7.0 6.8 4.6 4.1 4.0 4.9 4.8 8.3 28 29 Bank loans n.e.c......................... 5.4 6.5 13.6 9.8 9. i 9.5 15.5 9.0 5.2 6.7 11.7 3.8 14.4 2.5 29 30 Other loans................................ 2.7 4.1 4.7 7.4 4.5 7.8 5.3 7.7 9.0 8.6 1.3 5.1 2.9 7.6 30 31 Securities and mortgages............. 34.7 36.9 38.3 37.9 48.4 43.9 46. 1 34.6 27.0 41.4 44.9 52.3 54.8 46.2 31 32 State and local obligations..... 6.7 5.9 7.3 6.0 10.1 6.3 6.9 4.6 6.1 10.3 11.5 7.5 11.2 10.0 32 33 Corporate securities................... 3.6 5.4 5.4 11.4 17.4 12.2 15.5 11.3 6.6 14.3 15.8 21.4 18.1 12.5 33 34 1- to 4-family mortgages............ 15.2 15.7 16.2 11.0 11.5 14.2 12.5 9.1 8. 1 8.9 8.3 13.7 15.1 14.5 34 35 Other mortgages......................... 9.3 10.0 9.4 9.6 9.4 11.3 11.2 9.6 6.2 7.9 9.3 9.8 10.4 9.3 35 36 Net sources of credit (= line 17). .. . 58.5 67.0 71.3 69.9 83.1 84.1 83.2 62.6 49.9 74.3 44.3 104.6 108.9 103.7 36 37 Chg. in U.S. Govt, cash balance.. -.4 .2 -1.0 -.4 1.2 -3.3 6.7 -6.2 1.2 -.5 -14.8 13.4 6.8 -5.9 37 38 U.S, Govt, lending,...................... 2.7 3.8 4.7 7.9 4.5 11.1 10.0 7.8 2.8 6.1 -.8 5.0 8.0 14.0 38 39 Foreign funds.............................. 1.9 2.5 .8 - .9 5.4 -1.5 4.4 -5.3 -1.2 1.4 8.3 2.4 9.4 1.6 39 40 Pvt. insur. & pension reserves.... 10. 1 11.1 11.6 12.8 13.2 12.8 10.8 13.1 14.5 12.2 12.4 14.0 14.1 13.7 40 41 Sources n.e.c.................................. 4.7 5.7 7.1 7.7 5.8 11.3 6.1 14. 1 -.8 1.8 6.0 11.5 3.9 16.1 41 42 Pvt. domestic nonfin. sectors........ 39.5 43.8 49.0 42.8 53.0 53.6 45.2 39.0 33.5 53.3 33. 1 58.5 66.9 64.2 42 43 Liquid assets.............................. 37.4 33.0 43.4 23.9 49.1 33.3 21.8 18.5 22. 1 54.4 38.4 58.7 44.8 47.9 43 44 Deposits................................. 34.4 35.3 40.4 22.7 50.9 29.1 24.6 15.8 21.2 61.5 51.7 56.2 34. 1 27.5 44 45 Demand dep. and currency 5.9 6.5 7.7 2.9 12.0 4.0 1.6 -.5 6.5 10.8 10.6 15.2 11.1 -5.1 45 46 Time and svgs. accounts... 28.5 28.8 32.7 19.8 39.0 25.1 23.0 16.4 14.6 50.7 41.0 41.0 23.0 32.6 46 47 At commercial banks.... 13.4 13.0 19.5 12.5 22.4 15.4 18.1 11.1 5.4 33.8 20.4 23.0 12.3 20.2 47 48 At savings instit......... 15.1 15.8 13.2 7.3 16.6 9.8 4.9 5.3 9.3 16.9 20.6 18.0 10.7 12.4 48 49 Short-term U.S. Govt. sec... 3.0 -2.3 3.0 1.2 -1.8 4.2 -2.9 2.7 .9 -7. 1 -13.3 2.5 10.6 20.4 49 50 Other U.S. Govt, securities.... 1.7 3.1 . 1 6.8 - 1.2 5.2 14.5 3.3 4.3 -11.2 -3.9 -3.3 13.7 -3.6 50 51 Pvt. credit mkt. instruments .. . 2.3 7.5 5.9 11.9 7.2 15.4 10.5 15.4 6.5 9.6 1.2 6.2 11.9 17.8 51 52 Less security debt..................... 2.0 -.2 .3 -.2 2.2 .3 1.5 -1.9 -.6 -.5 2.5 3. 1 3.5 -2.1 52 IH. Direct lending in credit markets 53 Total funds raised............................. 58.5 67.0 72.3 69.9 83.1 84.1 83.2 62.6 49.9 74.3 44.3 104.6 108.9 103.7 53 54 Less change in U.S. Govt, cash.... -.3 -1.0 -.4 1.2 -3.3 6.7 -6.1 1.2 -.6 - 14.9 13.4 6.7 -6.2 54 55 Total net of U.S. Govt, cash........... 58.8 66.8 73.3 70.3 81.9 87.3 76.4 68.7 48.7 74.9 59.1 91.2 102.2 109.9 55 56 Funds supplied directly to cr. mkts.. 58.8 66.8 73.3 70.3 81.9 87.3 76.4 68.7 48.7 74.9 59.1 91.2 102.2 109.9 56 57 Federal Reserve System............... 2.6 3.2 3.8 3.3 3.9 2.5 -.1 6.6 4.2 2.9 -.3 7.9 4.5 7.9 57 58 Total........................................... 2.9 3.4 3.8 3.5 4.8 2.5 2.1 5.0 4.3 5.2 2.9 3.7 6.9 4.8 58 59 Less change in U.S. Govt. cash. .3 .2 * .2 .9 . 1 2.1 -1.6 . 1 2.4 3.2 -4.2 2.4 -3.0 59 60 Commercial banks, net................. 19.7 21.8 29.3 17.9 35.9 22.7 28,0 14.1 6.8 41.9 40.3 37.2 24.6 26.3 60 61 Total........................................... 19.4 22.4 29.1 17.4 36.4 19.5 32.9 9.6 7.9 39.7 22.3 54.8 28.9 23.1 61 62 Less chg. in U.S. Govt. cash... -.6 < -1.0 -.5 .2 -3.3 4.6 -4.5 t.l -3.0 -18.1 17.6 4.4 -3.2 62 63 Security issues........................ .3 .6 .8 . 1 .2 . 1 .3 * * .8 . 1 ♦ * 63 64 Nonbank finance, net................... 28.0 29. 1 26.9 22.5 32.4 28.0 16.7 21.0 24.2 29.0 35.0 38.1 27,4 21.8 64 65 Total........................................... 34.4 33.5 32.9 25.8 33.6 35.8 18.8 21.7 27.2 30.9 19.3 51.0 33.0 24.4 65 66 Less credit raised....................... 6.4 4.4 5.9 3.3 1.2 7.7 2.0 .7 2.9 1.9 -15.7 12.9 5.7 2.6 66 67 U.S. Government.......................... 2.7 3.8 4,7 7.9 4.5 11.1 10.0 7.8 2.8 6.1 -.8 5.0 8.0 14.0 67 68 Foreign........................................... .9 .6 -.1 -1.4 3.2 -1.3 1.2 -4.1 -1.6 3.3 3.6 .9 5.1 3.3 68 69 Pvt. domestic nonfin..................... 5. 1 8.5 8.6 20.1 2.0 24.5 20.6 23.2 12.3 -8.1 -18.6 2.3 32.7 36.7 69 70 Households.......................... .4 3.2 2.2 10.5 -4.0 14.0 15.3 11.0 1.9 -13.1 -18. 1 -1.3 16.7 17.0 70 71 Business...................................... 3. 1 1.5 1.0 3.2 .4 5.7 1.4 3.4 2.5 1.2 -5.6 .2 5.9 10.7 71 72 State and local govts................. 3.5 3.7 5.8 6.2 7.8 5.0 5.4 7.0 7.3 3.2 7.7 6.5 13.7 6.8 72 73 Less net security credit.............. 2.0 -.2 .3 -.2 2.2 .3 1.5 -1.9 -.6 -.5 2.5 3. 1 3.5 -2.1 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. unrevised before 1968 relative to tables in the May 1968 Bulletin. These tables reflect revisions in income and product accounts for 1965-67 Financial revisions for 1965-67 will be published later this year. published in the July Survey of Current Business but financial data are Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ FLOW OF FUNDS A-69 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1966 1967 1968 Transa o c r t i s o e n c t c o a r tegory, 1963 1964 1965 1966 1967 1 II III IV 1 11 III IV I I. Demand deposits and currency 1 Net incr. in banking system liability. . 5.8 7.4 7.6 2.6 14.7 -.3 10. 1 -8.0 8.8 8.2 -.9 29.4 21.8 -7.9 I 2 U.S. Govt, deposits......................... -.3 .2 -1.0 -.4 1.2 -3.3 6.7 -6.1 1.2 -.6 -14.9 13.4 6.7 -6.2 2 3 Other................................................ 6. 1 7.3 8.6 3.0 13.5 3.0 3.3 -1.9 7.6 8.8 14.0 16.0 15.0 -1.7 3 4 Domestic sectors......................... 6.0 6.8 8.3 3.3 12.7 2.9 2. 1 -. 1 8.2 12.0 11.5 15.5 11.5 -. 6 4 5 Households.............................. 4.3 6.4 7. 1 1.9 12.4 -2.2 1.4 .5 8. 1 13.6 14.2 7.3 14.5 -14.8 5 6 Nonfinancial business............. -.8 -2.1 -1.7 .7 - 1.5 2.3 .2 1.5 - 1.3 -4. 1 -3.9 4.2 -2.5 7.7 6 7 State and local govts......... 2.4 1.2 - .2 .8 .3 2.7 1.3 -.7 -.1 3.3 * 1.0 -2.9 1.0 7 8 Financial sectors..................... .2 .3 .7 .4 .7 -1.1 .5 .5 1.6 1.3 .9 .4 .4 4.4 8 9 Mail float................................ -. 1 .9 2.5 -.5 .8 1.2 -1.3 -1.8 -2.0 .4 2.6 2.1 I. 1 9 10 Rest of the world........................ . 1 .5 .3 -.3 .8 . 1 1.2 - 1.8 -.6 -3.2 2.4 .5 3.5 -1.0 10 II. Time and savings accounts 11 Net increase—Total............................ 29.5 30.4 33.0 20.3 40.8 24.6 24.5 16.7 15.5 52.3 45.4 42.0 23.5 32.4 II 12 At commercial banks—Total........ 14.3 14.5 20.0 13.3 23.8 15.1 20. 1 11.6 6.2 35. 1 23.7 23.7 12.7 19.8 12 13 Corporate business..................... 3.9 3.2 3.9 -.7 4. 1 4.1 1.7 -3.9 -4.6 10.0 -.9 3.7 3.7 .5 13 14 State and local govts................... 1.6 1.7 2.4 1.3 2.4 -.4 2.1 1.9 1.5 5.7 3.4 .6 . 1 1.5 14 15 Foreign depositors...................... 1.0 1.4 .6 .8 1.3 -.2 2,0 ,6 1.0 1.2 2.3 1.1 .8 -.7 15 16 Households.................................. 7.9 8.2 13.3 11.9 15.8 11.6 14.3 13.0 8.5 18.0 17.9 18.7 8.5 18.2 16 17 At savings institutions.................... 15.2 15.9 13.0 7. 1 17.0 9.5 4.4 5. 1 9.3 17.2 21.7 18.3 10.7 12.6 17 18 Memo: Households total................... 23.0 23.9 26.5 19.2 32.4 21.4 19.2 18.3 17.8 35.0 38.6 36.7 19.2 30.6 18 III. U.S. Govt, securities 19 Total net issues.................................... 5.0 7. I 3.6 6.3 12.7 10.8 6.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.7 19 20 Short-term marketable................... 1.4 4.0 3.5 2.2 6.4 -1.5 -7.3 7.6 10. 1 9.9 -35.7 30.9 20.7 29.9 20 21 Other................................................ 3.6 3.0 .2 4. 1 6.2 12.3 14. 1 -2.7 -7.2 - 1.9 14.5 3.9 8.5 4.8 21 22 Net acquisitions, by sector................. 5.0 7.1 3.6 6.3 12.7 10.8 6.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.7 22 23 Federal Reserve System................. 2.8 3.5 3.7 3.5 4.8 2.8 1.7 5.7 3.8 5.5 2.8 3.6 6.9 5. 1 23 24 Short-term................................... 4.9 2.1 3.7 5.4 1.9 2.8 -.3 6.7 12.4 -. 1 -4.2 2.3 9.3 1.1 24 25 Commercial banks......................... -2.6 .4 -2.3 -3.5 8.8 -3.0 -.3 -5.7 -4.8 17.9 -.3 23.6 -5.9 8.6 25 26 Short-term marketable................ -3.5 3.9 -1.7 -4.5 4.6 -10.2 -.5 -2.8 -4.4 10.2 -7.2 18.3 -2.7 4.8 26 27 Other direct................................. .5 -4. 1 -1.4 1.1 1.4 7.2 -2.3 -.3 -.3 5.5 2.4 2.8 -5.2 2.6 27 28 Nonguaranteed........................... .3 .6 .8 2.8 * 2.6 -2.6 -. 1 2.2 4.4 2.5 2. 1 1.2 28 29 Nonbank finance............................. -.5 2.0 -.8 .9 * 4.0 -4.6 3.4 .8 -8.5 9.6 -1.4 4.7 29 30 Short-term marketable................ -1.3 1.2 -.4 1.5 1.0 3.2 -2.6 3.8 1.4 4.6 - 10.7 10.6 -.4 5.3 30 31 Other direct................................. .6 .5 -.7 - 1.0 -1.5 -.2 -2.4 -.5 -.9 -5.2 .9 -.7 -1.1 -3.0 31 32 Nonguarantecd....................... .3 .3 .3 .4 .5 .9 .4 . 1 .4 .8 1.4 -.3 . 1 2.3 32 33 Foreign.................................... . 6 .5 -. 1 -2.6 2.1 -2.3 -1.6 -4.4 -2. 1 2.6 1.9 - 1.4 5.2 -.4 33 34 Short-term................................... -.6 . 1 -.4 -.8 1.6 -1.2 -.3 -2.4 .7 3. 1 .7 -2. 1 4.8 -1.5 34 35 Pvt. domestic nonfinan. sector. ... 4.7 .8 3.1 8.0 -3.0 9.3 11.6 6.0 5.2 -18.2 -17.2 -.8 24.4 16.8 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 20.I 36 37 Other direct................................. 1 .0 2.8 — 1.2 2.2 -1.6 1. 1 1.8 . 5.8 -9.6 -3.0 -1.8 8.1 -5.8 37 38 Nonguaranteed........................... .7 .4 1.3 4.6 .4 4. 1 14.3 1.5 -1.4 -1.5 -.9 - 1.5 5.6 2.2 38 39 Savings bonds—Households.... 1.2 .9 .6 .6 .9 .3 .7 .3 .9 .» 1 .1 .7 .9 .2 39 IV. Other securities 40 Total net issues, by sector.................. 13.1 14.6 16.2 18.7 29.6 21.7 23.4 17.2 12.5 28. 1 28. 1 31.4 30.8 25.5 40 41 State and local govts....................... 6.7 5.9 7.3 6.0 10.1 6.3 6.9 4.6 6. 1 10.3 11.5 7.5 1 1.2 10.0 41 42 Nonfinancial corporations............. 3.6 5.4 5.4 11.4 17.4 12.2 15.5 1 1.3 6.6 14.3 15.8 21.4 18. 1 12.5 42 43 Commercial hanks.......................... .3 .6 .8 . 1 .2 . 1 . 3 * .8 . 1 * 43 44 Finance companies......................... 1.4 2.1 1.9 .8 .6 1.7 .5 1.2 -.4 1.7 -.3 1.0 . 1 1.5 44 45 Rest of the world........................... 1.1 .7 .8 .5 1.3 1.4 .2 * .2 1.0 1.0 1.6 1.4 1.6 45 46 Net purchases...................................... 13. 1 14.6 16.2 18.7 29.6 21.7 23.4 17.2 12.5 28.1 28. 1 31.4 30.8 25.5 46 47 Households...................................... -2.9 1.5 . 1 2.9 -2.5 7.3 4.5 3.4 -3.5 -4.0 -6.6 -.9 1.3 7.2 47 48 Nonfinancial corporations............. .9 .2 .7 .8 .7 .8 .8 .7 .8 .7 .7 .8 .7 .8 48 49 State and local govts....................... 2.5 2.8 2.8 4.1 6.0 3.5 2.4 5.6 5.0 7.0 6.9 4.8 5.5 5.5 49 50 Commercial banks.......................... 5.2 3.7 5.0 2.4 9.8 2.9 7.6 -. 1 -.7 9.6 14.5 4.8 10.3 4.6 50 51 Insurance and pension funds......... 7.6 7.5 9.5 9.5 13.5 11.6 8.3 9.5 8.6 I3.9 11.0 14.6 14.4 13.8 51 52 Finance n.e.c........................ -.2 -.8 -1.7 -2.2 -1.1 -5.3 -2.8 1.5 -1.9 -2.8 2.1 - 1.9 -11.1 52 53 Security brokers and dealers.... .2 -. 1 . 1 . 1 -2.8 -.3 1.0 2.6 -1.9 -2.9 2.6 2.5 -2.9 53 54 Investment cos., net.................... -.5 - .8 — 1,5 -2.4 -1.2 -2.5 -1.9 -3.8 -1.2 I -.5 -4.4 -8.3 54 55 Portfolio purchases......... .8 1. 1 1.6 1.3 1.6 3.0 .8 -1.1 2.5 3.0 1.3 3. 1 -1.1 -1.3 55 56 Net issues of own shares........ 1.2 1 .9 3. 1 3.7 2.8 5.6 2.7 2.8 3.6 3. I 1.3 3,6 3.3 6.9 56 57 Rest of the world........................... .3 -.1 -.4 .9 1.0 .7 2. 1 .4 .4 .5 1.3 2.2 * 2.8 57 V. Mortgages 58 Total net lending................................. 25.0 25.3 25.5 19.6 21.9 25.7 22.6 17.0 13.2 17.3 19.0 24.8 26.3 24.1 58 59 1- to 4-family................................... 15.7 15.4 16. 1 10.0 12.5 14.4 11.4 7.4 6.9 9.4 9.7 15.0 16.0 14.8 59 60 In process..................................... .5 -.3 -.9 1.0 .3 -I. 1 -1.7 - 1.2 .5 1.4 1.3 .9 .3 60 61 Disbursed.................................... 15.2 15.7 16.2 11.0 11.5 14.2 12.5 9. 1 8. 1 8.9 8.3 13.7 15.1 14.5 61 62 Other................................................ 9.3 10.0 9.4 9.6 9.4 11.3 11.2 9.6 6.2 7.9 9.3 9.8 10.4 9.3 62 63 Net acquisitions.................................. 25.0 25.3 25.5 19.6 21.9 25.7 22.6 17.0 13.2 17.3 19.0 24.8 26.3 24.1 63 64 Households...................................... -.3 -.2 -.9 -.4 -.6 -2.3 -.2 .6 .5 -.5 -1.7 -.4 .2 .7 64 65 U.S. Government........................... -1.0 .2 1.0 3.4 2.7 4.4 4. 1 3. 1 1.8 2.4 1.6 3. 1 3.7 4.6 65 66 Commercial banks......................... 4.9 4.5 5.6 4.6 4.6 5.4 5.3 4.3 3.6 2.0 3.5 6.0 6.7 5.6 66 67 Savings institutions......................... 16.1 14.8 13. 1 6.6 10.8 11.5 7.3 3.7 3.7 6.8 10.3 13. 1 12.9 10.7 67 68 Insurance......................................... 4.0 5. 1 5.5 5. 1 3.1 5.7 5.9 5.3 3.6 5.2 2.9 2.0 2.3 2.0 68 69 Mortgage companies....................... ,8 .4 .5 -.6 .4 .3 -.6 -.9 -1.1 .3 1.3 -.2 . 1 -.2 69 VI. Bank loans n.e.c. 70 Total net borrowing............................. 7.6 8.7 16.4 8.2 6.5 9.7 16.0 5.2 2.0 1.7 7,7 6.7 9.8 2.5 70 71 Nonfinancial business..................... 5.0 5.1 12.2 9.9 7.4 10. 1 15.2 9.6 4.7 5.8 1 1.0 2,0 10.8 4.8 71 72 Nonbank finance............................. 1.7 .5 2.4 -1.4 -2.4 .6 -. 1 -3.5 -2.7 -4.3 -3.3 2. 1 -4.0 .4 72 73 Households...................................... .4 1.4 1.3 1.7 -.6 .3 -.7 . 5 .9 .7 1.7 3.5 -2.4 73 74 Rest of the world............................ .5 1.7 .4 -.2 -.3 -.4 .5 -.3 -.5 -.6 - .8 .8 -.5 -.4 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-70 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 1968 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1966 1967 1968 Item 1965 1966 1967 IV I II III 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—Total 1...................... 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 2,701 657 670 670 680 681 701 Travel........................................................................ 1,380 1,590 1,646 411 421 384 417 424 452 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 services1................................... 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 -111 -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 -ll 22 5 -12 -10 -27 Other nonconvertible, nonmarketable, me­ dium-term U.S. Govt, securities3............ -7 -49 469 53 ♦ ♦ 335 135 273 5. Errors and unrecorded transactions........................ -315 -210 -532 -102 -250 -458 207 -34 -148 Balances A. Balance on liquidity basis Seasonally adjusted (= 14-24-34-4+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..............1..1..6..........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

SEPTEMBER 1968 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A-71 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1966 1967 1968 Item 1965 1966 1967 IV I II III 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 (increase, —)....................................................... 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........................... 4-94 537 -94 46 -31 -10 -5 -48 -57 Change tn 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 5.............1.2..2............-.9..4...5............. 455 -176 72 46 125 212 100 Marketable U.S. Govt, bonds and notes 5. -20 -245 48 8 5 52 -6 -3 -359 Deposits, short-term U.S. Govt, securities, etc........................................... -154 -582 1,537 -31 -174 441 162 1,108 -1,107 34 177 22 17 5 8 Commercial banks abroad........................... 116 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.................................. 1,289 -266 3,405 185 1,279 705 25 1,396 -90 Change in U.S. official reserve assets (increase, —)..................................................... 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 -80 544 281 1,317 -1,358 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations................... -38 793 839 375 304 587 -212 160 117 Of U.S. Govt.............................................. 123 “32 452 15 28 -7 331 100 247 1 Excludes transfers under military grants. 5 With original maturities over I 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..................... 31,228 2,264 2,617 2,785 31,199 1,918 2,256 2,609 3 28 347 361 176 Feb..................... 3 1,623 2,376 2,605 2,773 3 1,606 2,024 2,229 2,602 317 352 376 171 Mar.................... 3 2,739 2,554 2,549 2,455 31,861 2,080 2,200 2,612 3 878 474 349 -158 Apr..................... 3 2,406 2,354 2,653 2,889 31,811 2,113 2,226 2,641 3 595 241 427 248 May................... 3 2,299 2,416 2,547 2,720 3 1,797 2,082 2,137 2,752 3 503 334 410 -32 June.................. 3 2,235 2,487 2,577 2,759 31,848 2,142 2,227 2,847 3 386 346 350 -87 July.................... 2,300 2,455 2,585 2,803 4 1,742 2,178 2,209 2,664 4558 277 376 139 Aug.................... 2,329 2,444 2,599 1,825 2,119 2,125 504 324 474 Sept.................... 2,291 2,540 2,588 1,858 2,295 2,209 433 244 380 Oct..................... 2,349 2,588 2,394 1,885 2,250 2,198 464 338 196 Nov.................... 2,378 2,503 2,691 ...............1.,941 2,186 2,382 ................438 317 310 ................ Dec.................... 2,362 2,409 2,603 1,911 2,225 2,525 451 184 78 Quarter: I.......................... 3 5,589 7,195 7,770 8,012 3 4,666 6,021 6,684 7,823 3 923 1,173 1,086 189 II........................ 3 6,940 7,257 7,777 8,368 35,456 6,336 6,590 8,239 3 1,484 921 1,187 129 Ill....................... 6,920 7,439 7,772 45,425 6,592 6,542 41,495 846 1 ,230 IV....................... 7,090 7,500 7,689 5,736 6,661 7,105 1,353 839 584 Year 5..................... 26,700 29,379 31,007 ...........4..2..1.,366 25,542 26,922 ..............5.,334 3,837 4,086 ................ 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Significantly affected by strikes and by change in statistical procedures. Mutual Security Program. 5 Sum of unadjusted figures. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Note.—Bureau of the Census data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-72 U.S. GOLD TRANSACTIONS □ SEPTEMBER 1968 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1967 1968 Area and country 1959 I960 1961 1962 1963 1964 1965 1966 1967 II III IV 1 II Western Europe: Austria........................... -83 -1 -143 -82 -55 -100 -25 Belgium.............................. -39 -141 -144 -63 -40 -83 ............ -25 -33 France................................. -266 -173 -456 -518 -405 -884 -601 220 Germany, Fed. Rep. of. . . -34 -23 -225 Ireland................................ -1 -2 -2 -2 -1 -1 -12 -32 Italy..................................... 100 ..........2..00 -80 -60 -85 -85 -184 -25 Netherlands................... -30 -249 -25 -60 -35 -49 30 Spain................................... -114 -156 -146 -130 -32 -180 Switzerland......................... 20 -324 -125 102 -81 -50 -2 -30 -30 -25 -25 United Kingdom............... -350 -550 -306 -387 329 618 150 80 -879 -34 -77 -771 -900 50 Bank for Inti. Settlements. -32 -36 -23 Other................................. -48 -96 -53 -12 -6 -35 -49 16 20 19 -6 -1 -22 Total........................... -827 -1,718 -754 -1,105 -399 -88 -1,299 -659 -980 -44 -58 -863 -1,195 163 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 * * * ............ -5 * Colombia........................... -6 38 10_____29 7 Venezuela........................... 65 Other................................... -35 -42 -17 -5 -H -9 -13 -6 11 13 6 -7 -28 -7 Total........................... 19 -100 -109 175 32 56 17 -41 9 12 6 -7 -28 -12 Asia: Iraq..................................... -30 -10 -4 -21 ♦ -21 -14 -28 Japan.................................. -157 -15 Lebanon....................... -21 -32 -11 -11 -1 -74 -21 Malaysia............................ -1 -10 -24 Saudi Arabia................ -U -48 -13 -25 Singapore........................... -30 -23 Other................................... -28 -57 -32 -47 12 14 -14 -15 -22 -I -1 -1 -15 -26 Total........................... -186 -113 -101 -93 12 3 -24 -86 -44 -1 -1 -22 -143 -146 All other................................. -5 -38 -6 -1 -36 -7 -16 -22 1-166 -6 -1 1-162 -1 -15 Total foreign countries.......... -998 -1,969 -970 -833 -392 -36 -1,322 -608 -1,031 12 -53 -953 -1,317 -10 Inti. Monetary Fund........... 2 -44 3 300 150 ............ 4-225 5177 522 55 5* ............5 8 5-11 Grand total................ -1,041 -1,669 -820 -833 -392 -36 -1,547 -431 -1,009 17 -53 -953 -1,309 -22 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, 3 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 deposited by the IMF; see note 1(b) to Table 4. In June 1968 the IMF withdrew $17 million of these deposits. 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

SEPTEMBER 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 r T a e s s o s e t e r a t v s l e To G ta o l l 2 d sto T c r k ea s 1 ury c v u fo C e rr r r e o e ti n i n b g c ­ l n i e e s p R I o M e s s i i e n F t r i o v 3 e n End of month r T a e s s o s e t e r a v ts l e To G ta o l l 2 d sto T c re k a s 1 ury v c fo u e C r r r o e t r i i e n b g n ­ l n e ­ p R I o M e s s i i e n F t r i o v 3 n e cies 5 1958........................ 22,540 20,582 20,534 1,958 1967 Aug............. 14,605 13,075 13,008 1 162 368 1959........................ 21;504 19,507 19,456 1’997 Sept............ 14,649 13.077 13,006 1’200 372 Oct........ 14,927 13.039 12,905 1 ’509 379 I960........................ 19,359 17,804 17,767 1,555 Nov............. 15,438 12,965 12’908 2,092 381 1961........................ 18,753 16'947 16,889 ii6 1'690 Dec............. 14',830 12,065 11,982 2’345 420 1962........................ 17,220 16,057 15,978 99 1,064 1968—Jan............ 14.620 12,003 11,984 2,176 441 1963 ...................... 16,843 15^596 15,513 212 U035 Feb............ 14,790 11,900 11,882 2’235 655 Mar............. 13,926 10,703 10,484 2*746 477 1964........................ 16,672 15,471 15,388 432 769 Apr........ 13,840 10’547 10',484 2 804 489 1965........................ 15;45O 413,806 ^13',733 781 4863 May. 14’348 10^468 10,384 3’386 494 June........... 14,063 10,681 10,367 2 479 903 1966........................ 14,882 13,235 13,159 1,321 326 July........... 14’366 10,676 10'367 2’773 917 1967...................... 141830 12,065 11,982 2,345 420 Aug............. 14,427 10,681 10^367 2^817 929 1 Includes (a) gold sold to the United States by the International Mon­ 4 Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. ^ 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 T o r t a h n e s r a c c o t u io n n tr s i e b s y re U se .S rv . e 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 i n s n p t ­ s by s g N I a o M l e l e d t s F 1 D c f r c o u a i r r w o e e r s f i e i g n n 2 n g ­ s I i d M n o c i F l o n l a m n r e s e t D d ra o w o ll f a i n rs gs R m e e i p n n a t y s ­ c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 3 dollars 1946—1957............................. 2,063 4 594 -45 -2,664 827 775 775 28 1,975 1958—1963............................. C031 150 60 -1,666 2,740 2,315 3,090 75 1 ,035 1964............................. 525 18 -282 5 266 3,356 81 769 1965............................. 435 12 -282 165 3,521 85 5 863 1966............................. 776 680 15 -159 1 1,313 4’834 94 326 1967............................. 20 -114 -94 4,740 92 420 1967 Aug............................. 2 -1 1 4,792 93 368 Sept............................. — 1 — 3 — 4 4*788 93 372 Oct............. 3 -10 —7 4*781 93 379 Nov............................ 2 -4 -2 4',779 93 381 Dec............................. -39 -39 4,740 92 420 1968_ Jan............................... 3 -24 -21 4,719 91 441 Feb............................... 2 -216 -214 4,505 87 655 200 1 — 23 178 4*683 91 477 Apr..................... 2 -14 ' -12 4,671 91 489 May. ............................ 2 -7 -5 4,666 90 494 June........................... -I -408 -409 4*257 83 903 July.......................... .. 4 - 18 -14 4*243 82 917 Aug.............................. -1 -11 -12 4,231 82 929 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 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-74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Inti. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions Official institutions3 Banks and other foreigners regional organizations 5 Non­ pe E o r n i f o d d Total Total p G o d o e s l ­ i d t1 i m n G v e o e n l s d t t 2 ­ Total i i p t S b n l i t i o e a h e a b U r n s r b o y t m k e . i r r S l t e s d ­ ­ . ­ M n b G U o a a a o b o t n r n . e k S l v d d e s e . t s , 4 t ­ c m T o b U a n i a a o u r b b e n r v n r . l k S l y a d e e d e e s . r s ­ t t ­ ­ Total i i p S t n b l i t i o a e h e a b r U n s r b o y t m k e i r . r l S t s e d ­ ­ . ­ M b n G o U o a a a o n b n t r . e v l S k d d e s t e . s , 4 t ­ Total i i n p S t b l i t i o e h a e U a b r s r n o b y t m . k e S i r r l , t d e s . ­ ­ ­ 6 M n b G o U a a a o o b t n r n . e k S v l d d s e e t . - s , t t ­ notes 1957.. 715,825 200 200 7,917 5,724 n.a. 542 n.a. 1958.. 7161845 200 200 8’665 5'950 n.a. 552 n.a. 1959.. 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 19608 120,994 800 800 n!078 10'212 866 7,591 7,048 543 1,525 750 775 121^027 800 800 11,088 10,212 876 7,598 7,048 550 1,541 750 791 19618 1 (2 22 2 ^ ,8 9 5 3 3 6 8 8 0 0 0 0 8 8 0 0 0 0 1 11 1 1 ,8 8 3 3 0 0 1 10 0 ’ ,9 9 4 4 0 0 8 8 9 9 0 0 8 8, ’ 3 2 5 7 7 5 7 7, , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 , , 9 9 4 4 9 8 7 7 0 0 3 4 1 1 , , 2 2 4 4 5 5 19628 / 1 2 2 4 4 ; ^ d 0 6 6 8 8 8 80 0 0 0 8 8 0 0 0 0 1 12 2 ^ ,7 7 4 1 8 4 1 11 1 ’ ,9 9 9 6 7 3 7 75 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 25 8 0 4 9 91 1 1 1 1963 8 j26,361 800 800 14,387 12’467 1,217 703 9'214 8,863 351 1,960 808 1,152 126^322 800 800 14353 12,467 1'183 703 9,204 8,863 341 1,965 808 1,157 19648 1 (2 2 8 9 ’ ,0 95 0 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 5 5 , '4 4 2 2 4 8 1 1 3 3 , , 2 2 2 2 4 0 1 1 ' ' 1 1 2 2 5 5 1 1^ ,0 0 7 7 9 9 1 1 1 1 ' ’ 0 0 0 5 1 6 1 1 0 0 , , 6 62 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 1J05 1,201 11,478 11,006 472 1,431 679 752 19668, (29,904 1 ,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 129,779 1,011 211 800 13.655 12,539 860 256 14,208 13,680 528 905 580 325 1967—June.. "29.624 1 ,033 233 800 14,097 12,806 917 374 "13,703 '13,165 538 791 561 230 July .. "30,082 1 ,033 233 800 14,158 12,867 917 374 "14,055 "13,514 541 836 609 227 Aug... "30.834 1 ,033 233 800 "14,067 "12,707 911 449 "14,948 "14,400 548 786 579 207 Sept... "31 ,227 1 ,033 233 800 "14,369 "12,959 91 1 499 '15,089 "14,537 552 736 528 208 Oct.. . "32,467 1 ,033 233 800 "14,897 "13,385 911 601 15,811 15,250 561 >■726 "519 207 Nov... "33,846 1 ,033 233 800 "15,946 "14,327 908 711 "16,111 "15,564 547 ’•756 "552 204 "(33,305 1 ,033 233 800 "15,683 '14,064 908 711 "15,898 '15,340 558 "691 "487 204 Dec.8. ")33,153 1 ,033 233 800 "15,677 "14,058 908 711 15,758 15,200 558 >■685 "481 204 1968—Jan. .. "33.129 1 ,033 233 800 "15,236 "13,808 717 711 16,168 15,598 570 "692 "488 204 Feb... "33,333 1 ,033 233 800 "15,356 "13,993 652 711 16,308 15,715 593 "636 "431 205 Mar... "32,498 I ,041 241 800 '14,305 "12,945 549 811 16,396 15,792 604 "756 "551 205 Apr... 33.004 1 ,045 245 800 14,402 13,042 549 811 16,734 16,122 612 823 618 205 May.. 933,127 1 ,047 247 800 13,635 12,278 546 811 917,823 917,213 610 622 455 167 Junep. 32,525 1 ,030 230 800 12,121 10,764 546 811 18,696 18,083 613 678 512 166 i Represents liability on gold deposited by the International Monetary 8 Data on the two lines shown for this date differ because of changes in Fund to mitigate the impact on the U.S. gold stock of foreign purchases reporting coverage. Figures on the first line are comparable with those for the purpose of making gold subscriptions to the IMF under quota in­ shown for the preceding date; figures on the second line are comparable creases. with those shown for the following date. 2 U.S. Govt, obligations at cost value and funds awaiting investment ^ Includes $23 million reported for the first time as of May 31, 1968. obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. Upon termination of investment, the Note.—Based on Treasury Dept, data and on data reported to the same quantity of gold can be reacquired by the IMF. Treasury Dept, by banks and brokers in the United States. Data correspond 3 Includes Bank for International Settlements and European Fund. to statistics following in this section, except for minor rounding differences. 4 Derived by applying reported transactions to benchmark data; Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury breakdown of transactions by type of holder estimated for 1960-63. letters of credit and non-negotiable, non-interest-bearing special United Includes securities issued by corporations and other agencies of the U.S. States notes held by other international and regional organizations. Govt, that are guaranteed by the United States. The liabilities figures are used by the Dept, of Commerce in the statistics 5 Principally the International Bank for Reconstruction and Develop­ measuring the U.S. balance of international payments on the liquidity ment and the Inter-American Development Bank. basis; however, the balance of payments statistics include certain adjust­ 6 Includes difference between cost value and face value of securities in ments to Treasury data prior to 1963 and some rounding differences, and IMF gold investment account. Liabilities data reported to the Treasury they may differ because revisions of Treasury data have been incorporated include the face value of these securities, but in this table the cost value of at varying times. The table does not include certain nonliquid liabilities the securities is included under “Gold investment.” The difference, which to foreign official institutions that enter into the calculation of the official amounted to $32 million at the end of 1966, is included in this column. reserve transactions balance by the Dept, of Commerce. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for which breakdown by type of holder is not available. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 * Canada Am L e a r ti i n ca n Asia Africa cou O n t t h ri e e 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..................................................................................... /13,600 7,488 1,189 1,134 3,284 277 228 113,655 7,488 1 ,189 I ,134 3,339 277 228 1967-—June......................................................................... 14,097 8,213 909 t ,287 3 157 270 261 July.............................................................................. 14 158 8'297 909 I ,315 3,160 246 231 Aug............................................................................. ’14 067 8,357 912 1 186 '3118 253 241 Sept........................................................................... rl 4,369 8’649 903 r 1 179 G 167 224 •247 Oct.............................................................................. r14 897 9,065 968 rl 214 r 3’166 228 r256 Nov............................................................................. r1 5 946 10’257 901 ’1'261 '3 048 224 255 Dec.............................................................................. rl5 677 9,’872 996 rl ’ 131 '3 / 173 246 r259 1968—Jan............................................................................... •15,236 9,373 1 091 r1.210 '3 084 226 252 Feb.............................................................................. '15 356 9,179 1 403 rl 170 r3 115 269 220 Mar............................................................................. '14,305 8’881 851 r 1 / 174 '2 956 227 216 Apr.............................................................................. 14’402 8'624 1 040 1 ’371 2 889 244 234 May............................................................................. 13,635 7'908 1,035 1 380 2,823 248 241 June"........................................................................... I2J2I 7.034 ’671 1 J97 2.768 256 195 1 Includes Bank for International Settlements and European Fund. with those shown for the preceding date; figures on the second line are 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ comparable with those shown for the following date. pea 3 n D d a e t p a e n on d e t n h c e i e t s w i o n L lin a e ti s n s A ho m w e n ri c f a o . r this date differ because of changes of N fo o re t i e g .— n c D o a u t n a t r r ie e s p , r e a s s e r n e t p o sh rt o e r d t- b te y r m ba n li k a s b i i n li t t i h es e t U o n i t t h e e d o S f t f a ic te ia s l , a in n s d t i f tu or ti e o ig n n s in reporting coverage. Figures on the first line are comparable in coverage official holdings of marketable and convertible non marketable U.S. Govt, securities with an original maturity of more than I year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional Foreign Other E pe n r d i o o d f G to ra ta n l d 1 Total 1 Inti.1 gi R on e a ­ l2 Total c O i f a f l i 3 ­ Other Europe Canada A L m a e t r i i n c a Asia Africa c t o ri u e n s ­ 1966.......................... 27.599 1 ,380 I .270 1 10 26,219 12,539 13.680 13,933 2.502 3,883 5.250 385 266 1967—July.......... '27,790 1 ,409 1 .296 113 '26,381 12,867 '13.514 14,145 2,270 '4,143 5,200 339 284 Aug.............. '28,486 1 ,379 1 ,248 131 '27,107 '12,707 '14.400 14,958 2,253 '4,012 '5.241 367 277 Sept............... '28,824 1 .328 1 ,205 123 '27,496 ’12,959 '14,537 15,137 2,329 '4,039 '5.367 329 296 Oct................ '29.954 '1,319 '1,191 ’128 '28,635 '13/385 15,250 15,834 2.688 '4.121 '5,352 332 309 Nov............... '31'243 '1 ,352 '1.221 131 '29.891 '14,327 '15,564 17,142 2,613 '4,221 '5.281 328 306 /GO,691 '1 ,287 •1 ,181 106 '29,404 '14,064 '15,340 16,378 2,706 '4/140 '5,521 349 310 Dec. ^........... 1 '30.5.19 '1 .281 '1.181 '100 '29.258 '14,058 15,200 16.199 2,709 '4,137 '5.554 349 310 1968—Jan................. '30,694 '1 ,288 11,190 '98 '29,406 '13,808 1 5,598 16,033 .3,101 '4,194 '5,441 326 312 Feb................ •30'939 ’1 ,231 'I .1 17 114 '29>08 '13,993 15,715 16,129 3/201 '4,126 '5,532 434 286 Mar............... '30,088 '1 /35I 'I,258 93 '28,737 '12,945 15,792 15,861 2/791 '4,075 '5,384 339 287 Apr................ 30,582 1 .418 1 ,326 92 29,164 13,042 16,122 15,846 2,943 4,299 5,415 366 295 May.............. GO,746 1 '255 1,166 89 •s29,491 12.278 •M7.213 16,100 3,055 4,289 5,365 371 310 J une"............ 30,159 1 ,312 1,216 95 28,847 10,764 18,083 15,794 2/842 4.173 5,400 370 268 July’’............. 30,685 1 .407 1 ,300 107 29,278 II,251 18.027 1 5 .727 2,894 4.476 5.539 397 246 8a. Europe Ger­ E pe n r 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 6 ­ - D m e a n rk ­ 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- July... 14,145 197 545 262 91 1,021 2,297 106 1 .573 405 379 357 181 660 Aug... . 14,958 181 563 235 91 1 ,064 2,278 122 1 ,773 367 396 370 191 674 Sept.... 15,137 188 586 242 102 1 ,048 2.294 148 1 ,916 403 370 378 187 663 Oct.... 15,834 176 625 21 1 98 1 ,083 2,221 161 2,002 497 379 409 158 640 Nov.... 17,142 184 612 201 99 1 ,434 2,276 161 2,001 545 389 414 130 498 Dec.4,. / 16,378 231 601 243 99 1,326 2,218 170 1,948 589 449 437 150 492 \ 16,199 231 632 243 99 1 ,330 2,217 170 1.948 589 449 437 150 492 1968—Jan.. .. 16,033 165 '582 '213 116 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 ,786 488 390 426 121 541 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 .. (6,100 165 530 178 140 959 2,009 (54 1 ,364 272 404 381 153 582 June".. 15,794 164 420 185 150 1 .262 1 ,702 152 988 245 411 338 144 510 July".. 15.727 172 373 144 161 881 1 .834 173 998 242 435 325 151 514 For notes see following two pages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; jn millions of dollars) 8a. Europe—Continued 8b. Latin America E p n er d i o o d f Sw la i n tz d er­ Turkey U K d n i o n i m t g ed ­ Y sla u v g i o a ­ W E O u e t r s h o te e p r r e n 7 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 g 632 1967—July. ... 1 ,717 23 3,641 27 630 4 30 ’’4,143 '598 219 233 153 8 745 Aug....... 1 ,657 23 4,329 25 581 4 35 >•4,012 '604 196 229 135 9 702 Sept.. . . 1 ,701 29 4,226 26 592 5 32 >■4,039 '601 216 224 166 9 693 Oct........ 1 ,630 27 4,868 25 585 6 33 '4,121 '576 263 222 151 10 685 Nov.. . . 1 ,653 38 5,948 26 491 4 37 '4,221 '589 273 230 158 9 703 fl ,732 33 4,851 23 736 8 44 '4,140 '480 237 252 169 9 723 (1,732 33 4,667 23 706 8 44 '4,137 '479 237 252 169 9 720 1968—Jan........ i,539 39 5,142 42 834 7 31 ■■4,194 '427 277 251 159 9 722 Feb....... 1 ,511 39 5,431 56 653 6 29 '4,126 '414 291 239 165 8 747 Mar.. . . 1,657 29 5,583 52 439 4 35 '4,075 '430 301 263 157 8 721 Apr. . .. 1 ,543 28 5,881 60 438 4 31 4,299 444 351 260 163 8 745 May.... 1,553 25 6,792 59 350 4 26 4,289 473 310 241 190 8 813 June*’... 1 ,741 25 6,966 51 297 5 40 4,173 429 258 245 201 8 789 July?'. .. 1,863 22 6,980 20 401 6 32 4,476 640 248 251 182 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 e e n l e a ­ 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 i l n l t e h a s . m & A O L m a t e h t r i e n i r c a Total C M la h a n i i n d n a ­ H K o o n n g g India n d I e n o si ­ ­ a Israel 1966.................. 150 249 161 707 522 177 104 17 5 250 36 142 179 54 115 1967—July. . . . 155 270 136 764 544 192 110 17 5,200 36 165 220 58 166 Aug...... 157 257 128 725 520 209 116 24 '5,241 36 181 242 50 148 Sept...... 159 250 138 706 521 219 121 17 '5,367 36 187 243 47 142 Oct........ 164 250 131 778 515 234 123 18 '5,352 36 194 233 59 '147 Nov...... 181 264 137 792 520 236 111 20 '5,281 36 209 250 39 '147 J170 274 147 793 523 233 111 18 '5,521 36 215 354 34 '137 (170 274 147 793 523 233 111 18 '5,554 36 217 354 34 '137 1968—Jan........ 160 281 143 851 512 276 108 18 '5 441 37 224 329 40 '125 Feb....... 153 267 152 770 559 252 89 17 ■5,532 36 226 351 42 '146 Mar. . . . 137 259 143 730 579 242 86 19 ■5,384 37 228 319 39 122 Apr. . . . 136 276 140 814 603 242 90 25 5,415 36 221 342 46 131 May, .. . 142 272 144 780 579 226 86 25 5,365 36 238 368 41 140 June"... 150 278 138 742 592 219 99 25 5,400 36 243 384 74 143 July". .. 151 268 133 797 622 245 91 27 5,539 36 255 376 51 149 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 ic th a ( U E . g A y . p R t) . A O f t r h i e c r a Total t A ra u l s ia ­ o A th l e l r 1966.................... 2,671 162 285 228 598 779 385 15 31 71 39 229 266 243 22 1967—July.......... 2,449 191 276 227 663 749 339 13 35 63 15 214 284 255 28 Aug......... '2,439 184 271 230 685 775 367 17 33 73 21 224 277 252 25 Sept......... '2,550 192 287 230 684 768 329 14 37 55 17 205 296 271 25 Oct.......... '2,519 193 273 229 663 805 332 16 32 59 15 210 309 284 25 Nov...... '2'458 203 286 220 629 802 328 13 26 63 17 209 306 276 30 uec. ^,... ( f ' ' 2 2 , , 5 5 9 63 7 1 1 7 7 6 6 2 2 9 9 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 3 1 1 8 8 6 6 1 1 1 1 6 6 2 2 2 2 1 1 3 3 1 1 0 0 2 2 8 8 3 3 2 2 7 7 1968—Jan........... '2,492 195 299 216 655 830 326 30 17 61 18 201 312 285 27 Feb.......... '2,541 181 >293 211 661 843 434 30 22 53 15 315 286 254 33 Mar...... '2,532 174 '292 209 669 764 339 28 22 57 17 215 287 258 29 Apr.......... 2', 537 185 288 196 692 740 366 27 14 54 19 252 295 270 25 May........ 2,482 178 267 197 690 729 371 25 10 60 20 257 310 285 25 June".... 2,537 172 271 196 689 655 370 21 21 47 19 261 268 239 29 July”....... 2,662 178 269 206 684 671 397 22 20 51 19 284 246 220 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 includes $23 million repotted for the first time as of May 31, 1968. tions, except Bank for International Settlements and European Fund 6 Through the first line for Dec. 1967 Luxembourg was included in which are included in “Europe.” Other Western Europe. 3 Foreign central banks and foreign central govts, and their agencies, 7 Includes Bank for International Settlements and European Fund; and Bank for International Settlements and European Fund. beginning with the second line for Dec. 1967 excludes Luxembourg. * Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage For Note see end of Table 8. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 8 (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 39.8 6.6 Iceland.......................................... 6.6 5.7 4.3 3.3 Kuwait........................................ 49.2 28.6 36.6 34.0 Ireland, Rep. of.......................... 8.9 7.4 9.4 14.7 Laos............................................ 4.6 6.5 3.6 4.0 Luxembourg................................. 25.3 21.7 31.3 (’) Lebanon.,................................... 100.1 112.2 113.3 97.2 Malaysia..................................... 38.3 34.9 63.9 52.1 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 14.5 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 60.3 159.5 156.9 Ecuador....................................... 86.3 92.4 85.6 64.1 Syria............................................ 3.4 4.7 6.3 6.5 El Salvador.................................. 68.9 96-4 72.8 83.6 Vietnam...................................... 132.0 146.3 148,2 123.0 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 31.4 Algeria........................................ 11.3 13.4 6.9 7.9 Jamaica.................................... 11.7 19.3 22.4 n.a. Ethiopia, (inch Eritrea).............. 53.5 40.2 23,8 22.5 Nicaragua..................................... 72.8 62.7 45.6 57.9 Ghana......................................... 6.9 5.3 4.3 13.0 Paraguay...................................... 14.9 16.6 12.7 13.6 Kenya.......................................... 1.2 2.1 16,4 19.8 Trinidad & Tobago..................... 4.7 5.4 6.1 9.2 Liberia......................................... 21.2 21.6 24.9 26.4 Libya........................................... 37.1 76.0 17.9 45.0 Other Latin America: Nigeria........................................ 25.7 36.5 37.9 n.a. British West Indies...................... 14.6 14,2 13.8 20.6 Southern Rhodesia..................... 2.7 3.3 2.4 4.2 Sudan.......................................... 3.4 6.7 2.3 2.1 Other Asia: Tanzania..................................... 6.5 9.1 20,3 n.a. Afghanistan.................................. 9.5 7.8 5.5 5.6 Tunisia........................................ 1.1 1.0 10.3 2.0 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 AU other: Iraq................................................ 17.6 28.0 34,6 n.a. New Zealand............................. 13.6 16.7 17,5 15.4 8 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 $> 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 Bank and the International Development Association. time) and U.S. Govt, securities maturing in not more than 1 year from For data on long-term liabilities, see Table 14. 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks, official and international institutions1 To all other foreigners Payable in End of period Total foreign Deposits U.S. Deposits U.S. currencies Total T bi r l e ls a s a u n r d y Other 3 Total T bi r l e ls a s a u n r d y Other 3 Demand Time 2 certificates Demand Time 2 certificates 1966............................... 27,599 23,266 8,371 4,050 7,464 3,381 3,744 1 ,513 1 ,819 83 329 589 1967—July.................... '27,790 r23,474 8,214 '3,745 7,891 3,624 3,812 1 ,580 1 ,871 66 296 503 Aug................... r28,486 r24'223 8,915 '3,737 7,896 3,675 3,831 1 ,515 1 ,916 69 331 432 Sept.................... '28,824 '24,539 9'044 G,800 8,035 3,660 3,907 I ,579 1 ,937 76 315 379 Oct.................... '29.954 '25,690 9,846 G,956 8,117 '3,771 3,983 M77 1,999 84 322 282 Nov................... Gl ,243 '26,936 9,994 '3 853 9,444 '3,644 4,077 1,630 '2,047 76 G24 231 '130,691 '26,334 10,054 G,764 9,093 G,423 '4,128 I ,693 2,052 81 G02 229 Dec. ^................. ^30,539 '26,183 '9,884 G.753 9,093 G.453 4,128 I ,693 2,057 81 297 229 1968—Jan..................... GO, 694 '26,356 '10,145 '3,678 8,867 '3,666 4,046 1 ,576 2,083 103 283 291 Feb..................... GO,939 '26,541 10.203 '3,600 8,943 3,795 4,091 I ,581 2,090 104 315 308 Mar................... GO,088 '25,679 10,487 G,459 8,098 '3,635 4,085 1 ,585 2,055 101 344 323 Apr.................... 30,582 26,204 10,750 3,522 8,047 3,885 4,080 1 ,607 2,059 86 327 300 May................... G0,746 526,371 11,914 3,415 7,082 53,960 54,055 1 ,582 2,048 88 5337 320 JuneP................. 30,159 25,663 12,249 3,352 6,'067 3,995 4,173 1 ,694 2,049 88 342 323 July”.................. 30,685 26^058 12,393 3,416 6,031 4,219 4,114 1 ,613 2,070 79 352 512 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 Fund. 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 5 Includes $23 million of liabilities reported for the first time as of time certificates of deposit. May 31, 1968, of which $22 million were due to banks and $1 million to all other foreigners. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May JuneP July” 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 11 11 11 France................................. 7 6 6 6 7 7 7 7 7 7 7 7 7 7 Germany............................. 1 1 1 I 1 1 2 2 2 2 2 2 2 2 Italy..................................... 2 9 9 9 9 9 9 9 6 6 6 6 6 6 Netherlands....................... 5 4 4 4 5 5 5 4 4 4 4 4 4 4 Norway.............................. 51 51 51 51 51 51 51 51 49 49 49 46 46 46 Spain................................... 2 2 2 2 2 2 2 2 2 2 I 1 1 1 Sweden............................... 24 24 24 24 24 24 24 24 24 24 26 26 26 26 Switzerland......................... 93 88 87 87 91 91 91 91 92 91 91 92 91 91 United Kingdom............... 348 368 375 379 383 371 380 390 415 423 431 427 432 445 Other Western Europe.... 49 50 51 51 51 51 51 51 51 38 38 39 38 38 Eastern Europe.................. 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Total........................... 605 626 633 637 646 634 643 652 674 669 677 671 674 686 Canada................................... 692 717 717 718 716 715 716 527 463 378 377 377 377 376 Latin America: Latin American republics.. 8 6 6 6 6 6 6 6 6 5 5 5 5 5 Other Latin America......... 19 18 18 18 18 18 18 20 20 20 19 19 19 22 Total........................... 25 24 24 24 24 24 24 25 26 25 24 25 25 27 Asia: Japan................................... 9 9 9 9 9 9 9 9 9 9 9 10 10 10 Other Asia.......................... 42 54 54 54 54 54 54 54 54 54 54 54 54 54 Total........................... 50 63 63 63 63 63 63 63 62 63 63 63 63 63 Africa..................................... 15 28 22 22 22 19 19 19 19 19 19 19 19 19 Other countries...................... 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total foreign countries.......... 1,388 1,458 1,459 1,463 1,472 I ,455 1,466 1,287 1,245 1,153 1,161 1,156 1,159 1 ,173 International and regional: International................. 250 169 169 169 169 169 168 168 168 168 168 129 129 122 Latin American regional... 75 58 38 38 38 35 35 36 36 36 36 37 37 38 Other regional.................... 1 1 1 1 1 1 I 1 1 I 1 I Total..................... 325 227 207 207 207 204 204 204 205 205 205 166 167 161 Grand total................ 1,713 1,685 1,666 1,671 1 ,679 1 ,659 1,670 1 ,491 1,450 1 ,358 1 ,366 1,323 1,325 1 ,333 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 Bel­ Den­ Bel­ Ger­ Switzer­ Total gium Canada 1 mark Italy 2 Korea Sweden Total Austria gium many } Italy land B.I.S. 1964................ 1 ,440 354 329 25 1 ,086 50 30 679 257 70 1965 ................ 1 ’692 484 299 1 60 25 1.208 101 30 602 125 257 93 1966 . . . 695 353 144 184 25 342 25 30 50 125 111 1967—Aug . . . 1 007 347 144 178 25 660 50 326 125 159 Sept. . 1,257 546 344 178 25 710 50 376 125 159 Oct.... 1,483 546 344 178 25 937 50 551 125 211 Nov,. . . 1 ’563 516 314 177 25 I ,047 50 60 601 125 211 Dec . , 1 563 516 314 177 25 1 ’047 50 60 601 125 211 1968—.jan . 4 1,484 312 1 14 173 25 1,172 50 60 726 125 211 Feb... I 479 307 114 168 25 1 ’ 1 72 50 60 726 125 211 Mar.... t ,879 606 414 167 25 1 '272 50 60 726 125 311 Apr. . 2 002 604 414 165 25 1 '398 50 60 852 125 311 May, , , 2 302 904 714 165 25 1,398 50 60 852 125 311 1 line 2 506 1 108 12 914 1 0 147 25 1 '398 50 60 852 125 311 July 2’521 1 122 I 2 914 10 146 1 5 25 1 399 50 60 852 125 311 Aug.. . . 2'595 1 J22 12 914 10 146 15 25 1 *473 50 60 926 125 311 .......... 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 J 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

SEPTEMBER 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 i i n c a Asia Africa co O un t t h r e ie r s 1964................................................................................. 7.957 1,230 1 ,004 2,235 3,294 131 64 1965 i............................................................................... J 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 29 8 3 8 3 3 , , 3 34 5 3 8 1 13 3 9 9 6 67 7 J7,819 I 1,366 620 2,489 3,135 147 62 1966 i............................................................................... {7,853 1 1,374 611 2,453 3,206 147 62 1967—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....................................................................... r8,349 * rl ,317 '574 2’579 3,692 H5 71 Oct...................................................................... '8 J 275 * r1 '268 572 2554 3,704 108 70 Nov................................................................. 8 360 ♦ 1 '224 564 2 '603 3,791 107 71 Dec. '.................................................................. \ J 8 8, . 5 6 9 1 7 1 * ' r 1 l . ’ 2 2 3 3 8 4 6 6 1 1 1 I r r2 2 , , 7 7 0 07 7 3 3 . , 8 8 8 7 5 5 1 1 0 0 2 2 6 67 7 1968—Jan........................................................................ r8 437 J ,138 554 '2 685 3,889 101 70 Feb....................................................................... '8 531 1 133 547 '2,715 3,947 117 71 Mar...................................................................... '8 390 * I 060 527 '2’694 3,934 106 68 Apr....................................................................... r8397 1 101 510 2,'695 '3,921 105 65 May.................................................................. 28 342 1 156 490 2,699 3,813 116 68 J unc".................................................................... 8’262 1 1,108 490 2,704 3,776 120 63 July"..................................................................... 8,193 1 1 .019 512 2.'738 3^735 124 65 12a. Europe Bel­ End of period Total A tr u ia s­ L b g o u iu u x m r e g m — 3 ­ D m e ar n k ­ l F a i n n d ­ France G Fe e d r o m . f R an e y p. , Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o 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 1 1 , , 2 2 0 0 1 8 8 8 5 52 2 3 3 7 7 8 8 7 7 7 7 2 2 1 1 9 9 0 0 1 13 3 1 1 1 1 0 0 3 3 8 8 5 5 1 1 2 26 6 5 5 0 0 5 5 2 2 1966 1.................... J I1 I , , 3 3 6 7 6 4 1 1 6 6 6 6 7 7 6 6 2 2 9 9 1 1 7 73 4 2 2 2 15 7 1 1 6 6 1 1 0 1 8 0 4 40 0 7 7 6 6 4 4 1 1 6 6 7 7 7 75 4 1967—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.................... r1 J17 24 66 33 90 79 189 18 57 36 52 26 53 65 Oct..................... rl 268 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......... ' q JI i , , ' 2 2 3 3 8 4 1 1 6 7 6 83 6 3 3 7 7 7 78 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 2 6 6 5 5 4 4 7 7 5 5 1968—Jan..................... r| 138 9 57 34 78 60 15! 19 51 38 61 22 54 65 Feb..................... 1,133 9 64 32 77 74 140 19 55 37 55 19 53 58 Mar.................... 1 060 7 58 39 77 59 116 14 58 31 55 16 76 59 Apr.................... 1 J01 7 57 30 77 66 11 3 17 65 38 59 16 73 61 May................... 1,156 6 62 38 71 83 100 17 72 42 55 17 50 62 June''................. I J08 7 61 30 70 58 133 17 87 37 44 15 52 56 July".................. । ;ot9 6 54 31 68 50 108 15 76 35 45 16 50 57 12a. Europe—Continued 12b. Latin America End of period S l w a e n r i ­ t d z­ T k u ey r­ U K d n o i i n m te g d ­ Y sl u av g i o a ­ E W O u e r t o s h t p e e e r rn 4 U.S.S.R. E E O u a r t s h o te e p r r e n Total A t r i g n e a n­ Brazil Chile l C b o i m o a ­ ­ Cuba M ic e o x­ 1964................................ 111 37 310 16 ♦ 20 2,235 203 126 176 338 17 644 1965 1............................ 1 |7 7 3 3 4 4 2 2 2 2 1 1 6 0 2 28 8 28 6 6 2 27 7 2 2 , , 2 2 8 9 8 3 2 2 3 3 2 2 9 94 4 1 1 7 7 4 4 2 2 7 7 0 0 1 16 6 6 6 6 7 9 4 1966 1............................ £ (8 83 8 5 52 2 2 1 1 9 0 3 1 1 9 9 4 3 U " 2 2 1 1 6 6 2 2 , , 4 4 8 5 9 3 1 1 9 8 3 7 1 1 1 1 4 2 1 15 5 8 9 3 3 0 0 8 5 1 1 6 6 7 7 6 5 7 7 1967—July. .................... 103 39 235 25 * 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 '290 23 3( 2 20 2,579 189 118 170 244 16 944 Oct....................... 118 34 '250 19 32 19 2,554 199 124 172 227 16 929 Nov..................... 110 23 232 19 3^ 19 2,603 208 136 175 227 16 910 Dec. 1. ................ 198 3 3 8 8 ' r 2 2 4 4 4 4 1 1 3 3 3 1 € j 3 3 1 1 8 8 ' r 2 2 , , 7 7O 07 7 2 2 2 2 1 1 1 1 7 7 3 3 ' ' 1 1 7 7 7 7 2 2 1 1 7 7 1 1 6 6 9 9 6 6 0 0 1968—Jan....................... 106 37 '232 15 24 3 21 '2,685 218 197 '192 201 15 '950 Feb...................... 106 37 249 15 1 2 20 '2,715 227 221 '181 193 15 '991 Mar.................... 76 28 241 15 1 I 23 '2,694 198 213 '183 190 15 '1 ,007 Apr...................... 93 33 238 17 12 3 25 2,695 208 233 176 188 15 983 104 34 279 19 1 2 31 2,699 210 249 166 190 15 977 June"................... 76 41 267 20 I ♦ 26 2,704 195 238 166 202 14 972 July".................... 78 23 249 17 I ♦ 29 2,738 203 283 169 202 14 988 For notes see the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-80 INTL CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 12b. Latin America—Continued 12c. Asia Other Baha­ Neth. Other E pe n r d io o d f Panama Peru g U u r a u y ­ V zu e e n l e a ­ r l e L ic p . s A ub . ­ m B m u & e a d r s a ­ A S n n u a t & i m r l i l ­ es A L m a ic t a e in r ­ Total C M la h a n i i n d n a ­ H K o o n n g g India I n n e d si o a ­ Israel 1964.................. 49 108 78 168 224 65 18 21 3,294 2 28 21 7 47 i you *................ / 1 5 5 9 9 1 1 7 7 0 0 4 45 5 2 2 2 2 0 0 2 25 5 0 0 5 5 3 3 1 14 4 2 2 3 3 3 3 , , 3 3 4 5 3 8 I 1 2 2 9 9 1 17 7 2 2 8 86 6 19661................ /84 2 2 1 1 1 2 4 4 5 5 2 2 2 2 0 6 2 2 6 7 1 2 6 6 1 1 1 1 8 8 1 1 7 6 3 3 , , 1 2 3 0 5 6 1 1 3 3 1 1 1 1 6 6 6 6 9 9 8 8 1967-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 1 36 11 6 59 Nov....... 55 248 46 211 288 54 10 20 3,791 2 29 11 6 58 147 249 42 226 289 63 10 18 3,875 1 28 10 5 57 147 249 42 226 289 63 10 18 3,885 1 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 1 30 12 9 46 Mar 53 233 40 221 254 62 9 18 3,934 1 30 12 9 47 Apr....... 52 230 35 214 261 71 10 19 r3,921 1 27 15 10 51 May.... 50 229 30 211 265 77 1 1 19 r3,813 1 30 12 10 54 June". .. 52 220 31 211 263 109 13 18 3,776 1 33 15 24 56 July". .. 50 205 36 211 276 73 13 15 3,735 1 29 20 20 53 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 i t c h a ( U E . g A y . p R t) . A O f t r h ic e a r Total A t l r i u a a s ­ ­ o A th ll e r 1964........................ 2,810 21 203 9 65 82 131 [ 2 20 42 67 64 48 16 !965i...................... / \ 2 2 ,7 ,/ 5 p 1 8 2 22 2 2 2 3 3 1 0 1 1 5 5 8 8 2 2 1 1 0 0 8 7 1 13 3 9 9 1 I 2 2 3 3 4 4 4 4 3 3 6 6 0 0 6 6 7 7 5 5 2 2 1 15 5 1966 1...................... / ( 2 2 , , 5 5 0 7 2 2 3 3 1 1 2 2 2 2 0 0 1 1 4 5 8 8 1 1 1 1 3 3 5 4 1 1 4 47 7 1 I 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—July............. 2,909 55 289 29 81 116 117 1 2 31 26 58 74 62 12 Aug............. 2,864 46 299 23 88 119 119 * 2 33 25 59 71 59 13 Sept............. 2,977 47 324 29 84 119 115 * 3 35 18 60 71 58 13 Oct.............. 2^986 48 323 27 84 124 108 35 18 53 70 57 13 Nov......... 3 .’062 46 326 31 90 131 107 I 2 37 14 54 71 58 13 (3,147 59 295 37 100 137 102 I 2 37 11 52 67 54 13 U.154 59 296 37 100 137 102 1 2 37 11 52 67 54 13 1968—Jan............... 3,181 48 290 41 105 125 101 1 2 37 12 49 70 58 13 Feb.............. r3;213 52 305 44 107 128 117 1 3 39 11 64 71 59 12 Mar. 3’213 54 305 44 92 129 106 t 2 37 11 55 68 55 1 3 Apr.............. 3’223 54 r282 42 90 127 105 2 3 39 14 46 65 53 12 May............ 3 J105 51 290 41 93 127 116 4 5 40 16 51 68 54 14 June"...... 3,048 53 293 38 90 126 120 4 7 40 15 53 63 51 12 July”........... 2,986 48 319 40 88 129 124 5 7 41 14 57 65 51 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 Includes $19 million reported for the first time as of May 31, 1968. their own account or for account of their customers in the United States; ■’Through the first line for Dec. 1967 Luxembourg was included in and foreign currency balances held abroad by banks and bankers and Other Western Europe. their customers in the United States. Excludes foreign currencies held 4 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

SEPTEMBER 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 millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Loans to— C t o io ll n e s c ­ A m a c n c a c e d e p e s t ­ Deposits g F c o u o v r r t i e , t i i g e se s n , ­ Total Total O i t n i f o s 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 a fo e c r c r s ­ t, Other Total w e i i t g h n e f r o s r­ a n p c n a o a d n p m c e f l e i r . ­ Other 1964............................. 7,957 7,333 2,773 221 1,403 1,150 1,135 2,621 803 624 336 187 102 Pi632 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 17,819 7,399 3,138 256 1 ,739 1,143 1,367 2,450 443 420 240 70 110 1966 2.......................... 17,853 7,433 3,141 256 I ,739 1,145 1,288 2,540 464 420 241 70 110 1967—JU|y................... 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 2,91 8 287 1 ,497 1,134 1 ,440 2,944 470 510 368 70 73 Sept................... '8^349 '7',927 3 ^046 271 1 ,595 1,181 1 ,452 2,929 '500 422 291 48 83 Oct.................... r8 275 r7 842 2’977 270 1 ’556 1 ,152 1 ,456 2,899 '510 433 293 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........ . ( 1 8 8 , , 5 6 9 11 7 ' '8 8 , J 1 7 8 2 6 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 2 1 ' ' 3 3 , , 0 0 1 1 3 3 ' ' 4 4 9 5 8 7 4 4 2 2 5 5 2 2 8 8 7 7 7 7 4 4 6 6 3 3 1968—Jan.................... r8,437 '8,034 '3,073 293 1 ,557 '1,223 1 ,560 '3,025 '376 403 261 70 72 Feb................... '8’531 '8,165 '3’166 303 1 '652 '1 ,212 1 ,628 '2,978 392 366 254 55 57 Mar................... '8’390 '8,065 '3,045 306 1 ,527 O ,212 1 ,630 '2,991 399 325 219 50 56 Apr., ................ r8,397 '8,050 3’036 278 1 ,563 1 '194 1,612 3,016 '387 347 240 50 57 May.................. 38'342 18,021 3 090 268 I ,621 1 ',201 I ,610 2,886 3435 321 220 48 53 JuneP................ 8'262 7^37 3,061 286 1 ,613 1 1162 1,609 2,796 469 325 227 43 55 JulyP................. 8 J93 7^855 3^020 276 1 ’570 1,173 1 ,586 2,787 463 338 230 51 57 1 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 3 includes $19 million reported for the first time as of May 31, 1968. 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area End of period Inter­ 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 U e r f r o e c n r u i e c n r i i g ­ e n s U K d n o i i n m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n c a Japan O A t s h i e a r t O c r o i t e u h s n e r ­ 1 1964............... 310 204 106 4,285 3,995 288 1 87 1,632 327 1,275 430 255 278 1965............... 513 203 311 4,517 4^211 297 9 86 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—July. . . '2,463 'I,859 604 3,843 3,588 238 17 48 952 355 1 ,410 185 393 500 Aug.... '2,533 '1 ,891 642 3,894 3,635 242 17 51 942 352 I ,455 176 396 522 Sept.. . '2,324 '1,670 654 3,911 3,623 268 19 52 909 364 1,500 171 395 520 Oct... . '2,289 '1,663 r626 3,980 3,694 271 15 52 856 377 1 ,534 204 408 549 Nov.. . '2,351 '1,691 '660 3,961 3,677 267 17 51 825 377 1 ,555 193 416 545 Dec.... '2,507 '1,819 '689 3,895 3,621 258 15 56 720 413 1,556 180 433 537 1968—Jan.... '2,508 '1,825 '683 '3,838 '3,579 247 12 57 708 416 '1,519 176 430 533 Feb... . '2,530 '1 ,851 '679 '3,774 '3,521 '243 10 55 684 400 '1,477 175 '444 539 Mar,. . '2,571 '1,937 '634 '3,696 '3,448 238 11 54 671 401 'I ,441 172 448 509 Apr... . 2,615 I ,990 625 3,756 3,494 252 11 65 661 421 1 ,450 164 476 519 May... 2,712 2,032 680 23,773 3,414 2348 11 65 632 415 1 ,442 151 553 514 June”.. 2,733 2,082 651 3,719 3,362 346 II 65 601 402 1 ,437 152 559 502 July?. . 2,592 1,963 629 3,605 3,250 344 It 65 552 400 1,408 145 545 491 1 Includes Africa. 3 Includes $76 million reported for the first time as of May 31, 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 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 or 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 -1 ,165 880 1 ,037 -157 1967—July -3 3 3 943 740 203 145 316 -171 68 69 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 1 22 266 — 1 44 94 155 -61 1968-Jan.. . -178 1 -179 -191 13 1,143 854 289 85 264 -179 68 79 Feb... -42 • -42 -65 23 I ,027 689 339 157 269 -112 70 80 -10 Mar,. -92 -92 -103 1 1 I ,089 809 279 325 418 -93 110 148 -38 Apr... 8 8 8 1 ,288 996 293 165 362 -197 73 79 -6 May.. -44 -39 -5 -3 -2 1 ,769 1 ,315 454 305 185 120 87 110 -22 June''. 3 2 - 1 3 1,348 1,117 231 99 215 -115 93 -17 July". 8 -6 14 14 1 ,371 I ,035 336 167 253 -86 81 81 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 ’313 182 427 -452 225 381 305 115 79 34 17 136 1967—July. . 203 87 115 61 56 -10 31 139 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 11 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.. . 293 261 32 22 103 4 22 151 83 36 16 7 May.. 454 82 372 42 81 166 159 447 19 21 12 1 -46 June". 231 179 51 16 109 „9 26 142 48 17 19 « * 3 July". 336 198 138 36 151 3 59 248 61 6 20 * 1 -1 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

SEPTEMBER 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) Total Period Total g I a i r n o n e t n d ­ i a , l c e t f o r i o i u g e r n n ­ s ­ r E o u p ­ e 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 u h e e n s r ­ E p n er d i o o d f Deposits U.S. A G ss o e v ts t , i n c E us a t r o m dy arked securities1 gold 1964................... -728 -140 -588 163 -670 -36 -77 7 25 1965................... -953 -164 -788 108 -659 -55 -131 3 -54 1964.............. 229 8 389 12,698 1966................... -685 -171 -514 214 -726 -9 -7 16 -2 1965.............. 150 8,272 12.896 1967................... -1,322 -393 -929 3 -771 38 -152 -20 -27 1966.............. 174 7,036 12,946 1967—July........ -173 -14 -159 27 -117 3 -53 -1 -18 1967—Aug... 144 7,535 12,993 Aug........ -117 -43 -75 -23 -24 2 -31 -1 2 Sept... 117 7,558 12,992 Sept. -175 -72 -103 -4 -101 3 5 -8 2 Oct.... 135 7,861 13,000 O D N e c o c t v . . . . . . . . . . . . . . . . . . . . . . . . - - 1 2 -4 0 4 5 4 4 -3 - 1 4 7 3 - - 2 1 - 5 0 7 7 0 -6 -4 2 7 - - 1 1 4 2 8 7 6 -6 2 - -1 1 - 1 9 4 -3 * * 2 2 * D N e o c v . . . . . . 1 1 6 35 8 9 9 , , 2 4 2 5 3 6 1 1 3 3 , , 2 0 5 3 3 2 1968—Jan.... 160 8,861 13,201 1968—Jan......... -190 -64 -126 4 -116 -1 -12 -1 1 Feb.. . 192 8,922 13,232 Feb......... -121 10 -131 -7 -112 -5 -3 -5 Mar... 197 8,418 13,466 A M p a r r . . ........ - - 1 2 3 0 1 2 - - 3 5 3 4 -1 -9 4 8 9 -29 7 -1 - 4 9 8 -4 -8 0 - 1 2 0 -31 ♦ 2 2 A M p a r y .. . . . 4 1 2 4 2 0 8 8 , , 7 3 6 2 3 8 1 13 3 , , 6 6 4 1 5 4 May .... 97 137 -40 -13 -37 -6 18 -4 1 June.. 153 7,676 13,232 J J u u n ly e P p. .. . . . . . -1 -8 3 7 3 1 2 4 -1 -7 3 2 5 55 7 - - 8 5 7 6 - - 2 6 7 0 -1 -7 3 -1 -4 7 2 * J A u u ly g . . . . . . 2 1 0 2 2 7 7 7 , , 5 6 9 0 0 9 1 1 3 3 , ,2 3 8 5 1 7 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 1968 Jan. 29........................... 1,040 1,688 3,059 4,157 Feb. 26........................... 1 ,077 Feb. 23........................... 1,902 14........................... 2,991 31......................... 4,092 Mar. 25........................... 1,046 Mar. 30........................... 1 ,879 21........................... 3,215 10........................... 4,289 28........................... 3,166 17........................... 4,367 Apr. 29........................... 1,146 Apr. 27........................... 1,909 24......................... 4,516 May 27......................... 1,132 May 25........................... 2,003 July 5........................... 3,078 31........................... 4,259 June 24........................... 917 1,951 ' 12........................... 3,304 19........................... 3,558 Feb. 7........................... 4,352 July 29........................... 1,008 July 27..................... 2,786 26........................... 3,660 14........................... 4,474 Aug. 26....... .............. 1,166 Aug. 31............................ 3,134 21........................... 4,739 Sept. 30........................... 1,166 Sept. 28........................... 3,472 3,370 28....................... 4,530 " 9........................... 3,669 Oct. 28........................... 1,198 Oct. 26............................ 3,671 16........................... 3,877 Mar. 6....................... 4,513 Nov. 25........................... 1,380 Nov. 30........................... 3,786 23........................... 4,031 13....................... 4,805 Dec. 30........................... 1,183 Dec. 28...................... 4,036 30........................... 3,976 20......................... 4,430 27.......................... 4,920 3,848 1965 1967 ‘ 13........................... 3,840 Apr. 3........................... 4,768 20........................... 3,930 10........................... 4,606 Jan. 27........................... 1,358 Jan. 25........................... 3,653 27........................... 4,059 17........................... 4,845 Feb. 24........................... 1 ,592 Feb. 22............................ 3,396 24......................... 5,020 Mar. 31........................... 1 ,431 Mar. 29........................... 3,412 4,047 11........................... 4,293 4,784 Apr. 28........................... 1,433 Apr, 5........................... 3,201 18........................... 4,235 8................... 5,235 1 ,432 12............................ 3,064 25........................... 4,322 15............... 5,426 June 30........................... 1,436 19........................... 3,137 22......................... 5,968 26............................ 3,047 4,320 29................... 5,888 July 28........................... 1 ,572 8........4...,.5..6..0.. ......... Aug. 25........................... 1,792 May 3........................... 2,843 15........................... 4,623 6,053 Sept. 29........................... 1 ,611 ' 10........................... 2,790 22........................... 4,864 12....................... 6,285 17........................... 2,950 29........................... 4,206 19............... 6,203 Oct. 27........................... 1 ,719 24........................... 3,254 26........................... '6,241 Nov. 24........................... 1,697 31........................... 2,776 4,480 Dec. 29........................... 1,345 13........................... 4,634 July 3........................... 6,816 20........................... 4,365 10........................... 6,964 27.......................... 4,241 17........................... 6,711 24........................... 6,687 31........................... 6,212 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

A-84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1968 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 1967 1968 1967 1968 Mar. June Sept. Dec. Mar?’ Mar. June Sept. Dec. Mar.p Europe: Austria................................................ 2 2 2 2 2 8 9 7 8 20 Belgium-Luxembourg i........... 34 28 32 27 29 63 39 45 42 44 Denmark................................................ 5 8 8 7 38 11 10 9 9 10 Finland.................................................. 1 2 2 3 4 4 5 6 6 7 France.................................................... 61 55 61 64 68 121 102 99 III 128 Germany, Fed. Rep. of................... 81 85 94 92 108 119 121 111 134 128 Greece.................................................... 2 2 3 8 9 17 18 20 20 20 Italy........................................................ 62 65 66 61 59 98 80 93 103 111 Netherlands........................................... 80 78 82 79 68 45 47 45 51 78 Norway................................................. 2 3 3 4 4 7 7 8 8 10 Portugal................................................. 7 5 6 6 4 6 7 6 7 6 Spain...................................................... 30 36 35 31 32 76 62 77 90 88 Sweden ................................................... 19 21 24 24 17 18 18 20 24 26 Switzerland............................................ 47 51 84 86 63 26 24 24 29 31 Turkey.................................................... 2 2 2 3 3 7 8 7 9 9 United Kingdom.................................. 236 244 312 306 251 646 577 542 690 1,027 Yugoslavia.......................................... 1 * 4 3 3 4 6 Other Western Europe!....................... 5 5 3 4 4 12 13 13 14 12 Eastern Europe.................................... 1 1 1 1 3 5 4 8 10 Total............................................... 678 692 820 807 765 1,293 1,155 1,138 1,367 1,773 Canada....................................................... 173 199 190 200 185 482 494 461 545 499 Latin America: Argentina........................................... 3 4 4 4 5 39 35 29 29 29 Brazil...................................................... 11 10 10 9 13 61 60 75 85 82 Chile....................................................... 5 6 7 8 10 30 31 26 34 31 Colombia............................................... 5 9 13 9 6 24 24 20 22 25 Cuba....................................................... 2 2 2 2 2 Mexico.................................................... 16 16 12 10 7 96 125 118 114 111 Panama.................................................. 4 3 2 4 5 11 10 14 14 10 Peru........................................................ 6 5 7 6 6 31 29 32 29 28 Uruguay................................................. 1 1 1 1 2 7 9 6 5 4 Venezuela.............................................. 38 37 36 33 35 56 53 54 59 63 Other L.A. republics,........................... 15 17 19 24 15 62 56 59 60 57 Bahamas and Bermuda......................... 7 5 4 8 5 12 21 24 23 35 Neth. Antilles & Surinam.................... 6 8 5 5 5 5 5 5 7 5 Other Latin America............................. 1 1 1 1 2 9 10 7 10 11 Total............................................... 118 122 122 121 117 445 470 471 490 494 Asia: Hong Kong............................................ 4 4 4 5 4 7 9 11 8 7 India....................................................... 13 15 12 12 13 33 35 39 43 42 Indonesia................................................ 2 4 5 4 4 5 5 3 3 5 Israel................................................. 1 1 3 4 5 4 5 6 7 Japan.................................................. 30 38 44 62 72 163 179 195 212 193 Korea.................................................... 2 2 1 1 1 7 6 8 8 11 Philippines.............................................. 6 7 7 8 8 17 23 22 27 20 Taiwan........................................... 5 2 1 5 6 12 10 10 11 9 Thailand................................................. 4 4 5 5 2 10 8 10 10 10 Other Asia............................................. 41 39 45 46 46 88 79 78 89 86 Total............................................... 107 114 126 150 160 346 357 380 416 392 Africa: Congo (Kinshasa)........................ 1 I 1 2 2 2 3 4 South Africa.......................................... 5 8 7 8 7 16 16 14 14 17 U.A.R. (Egypt)..................................... 2 2 3 3 4 9 7 7 7 5 Other Africa.......................................... 7 8 11 12 16 35 32 31 34 38 Total............................................... 15 19 21 23 29 62 58 54 58 64 Other countries: Australia...................................... 52 49 61 58 47 54 44 44 57 53 All other................................................. 6 7 8 7 5 8 6 7 7 9 Total.................................. 58 56 70 65 52 61 50 50 64 62 International and regional....................... * * * * * ♦ * 1 * * Grand total.................................... 1,148 1,203 1,349 1,367 1,308 2,689 2,585 2,555 2,941 3,284 i Beginning Dec, 1967 includes Luxembourg; prior to that time Lux- Data exclude claims held through U.S. banks, and intercompany accounts embourg was included in Other Western Europe, between U.S. companies and their foreign affiliates. Note.—Reported by exporters, importers, and industrial and com­ mercial concerns and other nonbanking institutions in the United States. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 i l n a la . b r l s e cu P f r o a r y r e i e a n n i b g c l i n e e s Total P d a o y i l n l a a b r l s e b D a e n p k o s s i a ts b r w oa it 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 June t................................................................................. 585 441 144 2330 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 1366 198 248 Sept................................................................................... 779 585 195 2306 1,949 190 267 Dec.................................................................................. 807 600 207 2,397 2,000 167 229 810 600 210 2,299 1’911 166 222 1966—Mar................................................................................... 849 614 235 2,473 2,033 211 229 June.................................................................................. 894 657 237 2,469 2'063 191 215 Sept.................................................................................. 1,028 785 243 2,539 2,146 166 227 Dec.................................................................................... 1,089 827 262 2,628 2,225 167 236 1967—Mar................................................................................... 1, 148 864 285 2,689 2,245 192 252 June ............................................... 1,203 916 287 2,585 2,110 199 275 Sept................................................................................. 1.349 1,025 324 2,555 2,116 192 246 Dec.......................................................................... 1,367 I ,023 343 2,941 2'523 201 216 1968—Mar.”................................................................................ 1,308 949 359 3,284 2,849 209 226 i 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 series 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 End of period lia T b o il t i a ti l e s Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa O A th ll er 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 JOI 31 116 230 217 74 138 89 96 91 18 Dec........................ 136 1,169 31 112 233 209 69 196 98 114 89 17 Dec. i..................... 147 1,139 3! 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....................... 1 88 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 ,488 27 257 303 214 88 290 110 98 85 15 Sept........................ 415 1 ,452 40 212 309 212 84 283 109 103 87 13 Dec.................. 418 1 ,546 43 257 311 212 85 288 128 117 89 16 1968—Mar J’..................... 572 1 ,501 36 259 320 206 54 268 128 127 84 19 t Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-86 GOLD RESERVES □ SEPTEMBER 1968 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E pe n r d io 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 r m es a t t e o d f A i f s g t h an an­ A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world 1 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 1,451 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--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 1 510 45 84 1J10 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............... 40,240 2,711 10,703 26,825 33 84 233 701 1,418 45 84 976 45 Apr................ 2,727 10,547 33 84 232 701 1 ,450 45 84 976 45 May............. 2,735 10,468 33 84 235 701 I ,450 45 84 926 44 June........ M0,525 2,210 10,681 ”27,635 31 89 257 714 1,512 45 84 926 45 July................ 2,212 10,676 31 714 1,518 84 926 45 Ger- E pe n r d io o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Irar Iraq l I a r n e d ­ Israel Italy Japan Rep. of 1961 88 107 47 2,121 3,664 87 247 130 84 18 10 2,225 287 1962. 57 92 61 2,587 3,679 77 247 129 98 18 41 2,243 289 1963 62 92 61 3,175 3,843 77 247 142 98 18 60 2,343 289 1964. 58 92 85 3,729 4,248 77 247 141 112 19 56 2,107 304 1965. 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 1966. 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967--July................ 29 108 47 5,233 4,285 150 243 145 94 24 46 2,406 Aug................ 30 108 47 5',234 4,283 149 243 145 94 24 46 2,400 Sept............... 30 108 47 5,234 4,284 130 243 145 94 24 46 2,401 335 Oct.......... 31 108 47 5',234 4,281 132 243 145 94 24 46 2,398 Nov............... 31 108 47 5,234 4^277 132 243 145 94 25 46 2,394 Dec................ 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 1968-—Jan................ 32 107 45 5,234 4,140 131 243 144 151 25 46 2,364 Feb................ 32 107 45 5,234 4,125 130 243 143 151 25 46 2,'368 Mar......... 32 107 45 5,235 3,972 134 243 166 165 37 46 2*376 341 Apr................ ^33 107 46 5'235 3,972 138 243 166 209 52 46 2,401 341 May.............. 33 107 46 5,235 3,973 141 243 166 209 62 46 2,452 341 June........ 33 113 46 4,739 4,312 142 243 166 209 71 46 2,673 355 July............... 33 113 46 4,576 4,350 141 243 166 209 78 46 2,698 355 E pe n r d io o d f Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N l e an th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e i s p­ Po g r a t l u­ A S r a a u b d i i a 1961.......................... 43 140 112 29 1,581 30 53 47 27 443 65 1962......................... 49 172 3 3 95 29 1,581 30 53 47 41 471 78 1963.......................... 48 172 7 8 139 29 1,601 JI 53 57 28 497 78 1964.......................... 48 183 17 7 169 34 1,688 JI 53 67 23 523 78 1965.......................... 52 182 68 2 158 21 1,756 11 53 67 38 576 73 1966......................... 67 193 68 1 109 21 1,730 18 53 65 44 643 69 1967--July................ 89 193 68 1 159 21 1,731 8 53 25 54 668 69 Aug.............. 89 193 68 2 157 21 1 ,731 8 53 20 56 686 69 Sept............... 89 193 68 6 155 21 1,731 8 53 20 57 690 69 Oct................ 89 193 68 10 155 21 1 ,731 8 53 20 58 692 69 Nov......... 89 193 68 24 164 21 1 ,731 8 53 20 59 698 69 Dec................ 136 193 68 31 166 21 1 ,711 8 53 20 60 699 69 1968--Jan................. 134 193 68 31 164 21 1,682 18 53 20 62 699 69 Feb................ 124 203 75 33 163 21 1,677 8 53 20 63 711 69 Mar............... 125 267 85 42 156 21 1,654 8 54 20 64 711 69 Apr................ 127 267 85 52 156 21 1,654 8 54 20 65 711 69 May.............. 131 267 85 66 156 21 1,655 8 54 20 67 715 69 133 288 85 21 1,697 14 54 20 67 716 94 July................ 122 85 1,697 14 54 69 94 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ GOLD RESERVES AND PRODUCTION A-87 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d io o d f S A o fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u a g vi 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 (966.............................. 637 785 203 2’842 62 92 102 93 1,940 146 40! 21 —424 1967 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 93 133 401 22 -529 Feb.................... 691 785 203 2'793 83 92 97 93 133 401 21 — 406 742 785 203 2’603 81 92 97 93 1,493 133 401 22 — 345 Apr.................... 847 785 203 2’603 81 91 97 93 133 401 22 -331 May.................. 946 785 203 2’628 81 89 97 93 133 401 22 -326 June.................. 975 785 225 2,656 81 89 97 93 1 ,474 M0 3 23 -333 July................... 1 ,003 785 224 2’,600 89 97 93 403 -274 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central 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.e., 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 R de 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 11.1 58,8 162.0 10.5 7.0 15.2 5.6 14.4 38.0 53.6 1961............................. 1,215.0 803.0 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37,7 53.9 1962............................. 1,295.0 892.2 19.4 31.1 7.1 54.5 146.2 8.3 7.8 13.9 5.7 14.8 37.4 56.6 1963............................. 1,355.0 960.1 19.8 32.2 7.5 51.4 139,0 8.3 7.2 11.4 4.8 13.2 35.8 64.3 1964............................. 1,405.0 1,018.9 20.1 30.3 6.6 51.4 133.0 7.4 7.9 12.8 5.2 14.9 33.7 62.8 1965............................. 1‘440.0 1,069.4 19.0 26.4 3.2 58.6 125.6 7.6 6.9 11.2 4.6 15.3 30.7 61.5 1966............................. 1’445.0 1’080.8 19.3 24.0 5.6 63.1 114.6 7.5 7 0 9.8 4.2 15.8 32.1 61.2 1967............................. Pl'410.0 1,068.7 18.0 26.7 5.4 ”55.4 103.7 6.4 6.2 9.0 3.4 17.5 28.4 61.2 1967—June................. 89.1 9.1 ,4 .8 21.7 1 .5 2.6 July. ................ 88.9 8.4 .4 .7 2.4 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 .7 .8 2.4 Dec................... 88.5 8.7 ,4 .6 2.2 1968—Jan................... 90.3 7.7 .6 .9 2.0 Feb................... 90.0 7.7 ,7 2.0 Mar.................. 91.8 8.3 .7 2.8 Apr........... 91.8 8.2 .7 May................. 93.1 8.4 .7 June................. 91.5 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-88 MONEY RATES □ SEPTEMBER 1968 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Aug. 31, 1967 Rate as of Country 1967 1968 Aug. 31, 1968 Per Month cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Argentina • 6.0 Dec 1957 6.0 Austria.. T..........., ,.............. 4.25 Apr. 1967 3.75 3.75 Relgium 4.5 May 1967 4.25 4.00 3.75 3.75 Rra^it . . . 12 0 Jan. 1965 12 0 Rurma . 4 0 Feb. 1962 4.0 Canada 1 . . 4.5 5.0 6.0 7.0 7.5 26.5 6.5 Ceylon................ 5.0 May 1965 5.5 5.5 Chile 3................................... 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 June 1964 7.5 7.0 6.5 6.0 6.0 Ecuador .. . ...................... 5.0 Nov. 1956 5.0 El Salvador........................... 4.0 Aug. 1964 4.0 Finland.................................. 7.0 Apr 1962 7.0 France................................... 3.5 Apr. 1965 5.0 5.0 Germany, Fed. Rep. of..... 3.0 May 1967 3.0 Ghana 6.0 May 1967 5.5 5 .5 Greece.............................................. 4.5 July 1967 5.0 5.0 Honduras 4............ . . . 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 Tran.. . 5.0 Aug. 1966 5.0 Ireland................................... 5.50 Aug. 1967 5.53 5.94 7.75 7.78 7.69 7.62 7 39 7.38 7,31 7.44 7.44 Israel..................................... 6.0 Feb. 1955 6.0 Italy....................................... 3.5 June 1958 3.5 Jamaica........... ...... 5.0 6.0 6.0 Japan..................................... 5.48 June 1965 5.84 6.21 5.84 5.84 Korea.................................... 28.0 Dec. 1965 28.0 Mexico................................. 4.5 June 1942 4.5 Netherlands........................... 4.5 4.5 New Zealand....................... 7.0 Mar. 1961 7.0 Nicaragua............................. 6.0 Apr. 1954 6.0 Norway................................ 3.5 Feb. 1955 3.5 Pakistan................................. 5.0 June 1965 5.0 Peru....................................... 9.5 Nov. 1959 9.5 Philippine Republic ............. 6.0 June 1967 7.5 7.5 Portugal................................. 2.5 2.5 South Africa......................... 6.0 July 1966 5.5 5.5 Spain..................................... 4.0 June 1961 4.0 Sweden.................................. 5.0 Mar. 1967 6.0 5.5 5.5 Switzerland........................... 3.0 July 1967 3.0 Taiwan 5.............................. 10.8 11.9 11.9 Thailand............................... 5.0 Oct 1959 5.0 Tunisia............................... 5.0 5.0 Turkey.................................. 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom.................. 5.5 May 1967 6.0 68.0 7.5 7.5 Venezuela.............................. 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, ^nd 12 and 18 per cent 2 Effective July 2 the rate was 7.0 per cent. for rediscounts in excess of an individual bank’s quofa; 3 Beginning with Apr. 1, 1959, new rediscounts have been granted at Costa Rica—5 per cent for paper related to commercial transactions the average rate charged by banks in the previous half year. Old redis­ (rate shown is for agricultural and industrial paper); counts remain subject to old rates provided their amount is reduced by Ecuador—6 per cent for bank acceptances for commercial purposes; one-eighth each month beginning with May 1, 1959, but the rates are Indonesia—various rates depending on type of paper, collateral, com­ raised by 1.5 per cent for each month in which the reduction does not modity involved, etc.; occur. Japan—penalty rates (exceeding the baste rate shown) for borrowings 4 Rate shown is for advances only. from the central bank in excess of an individual bank’s quota; 5 Rediscount rate for export and special production loans. Peru—8 per cent for agricultural, industrial, and mining paper; 6 Effective Nov. 9 the rate was 6.5 per cent. Philippines—4 per cent for financing the production, importation, and dis­ tribution of rice and corn and 5.75 per cent for credits to enterprises en­ Note,—Rates shown are mainly those at which the central bank either gaged in export activities. Preferential rates arc also granted on credits to discounts or makes advances against eligible commercial paper and/or rural banks; ' govt, securities for commercial banks or brokers. For countries with Spain—4.6 per cent for financial paper rediscounted for banks (rate shown more than one rate applicable to such discounts or advances, the rate is for commercial bills); and shown is the one at which it is understood the central bank transacts Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. the largest proportion of its credit operations. Other rates for some 1962), and 4 per cent for advances against govt, boqds, mortgages, or gold, of these countries follow: and for rediscounts of certain industrial paper, and 5 per cent on advances Argentina—3 and 5 per cent for certain rural and industrial paper, de­ against securities of Venezuelan companies. pending on type of transaction; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 m Da o d y a n - y e t y o 2 ­ 3 B a a m a c n n c o c k e n e p e s t r t h , s ­ s ’ T 3 r m b e i a o l s l n s u t , h r y s D m a d o y a n - y e t o y ­ a B l d l a e o n p w o k o n a e s n r i s t c s * e D m a o d y n a - e y t y o ­ 3 Tr 6 d b e 0 a i a - y l s l 9 s s u 0 , 4 r y m D o a d y n a - y e t y o 5 ­ 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e t o y ­ 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—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 5.12 2.75 2.44 4.33 3.49 3.75 May............ 6.96 6.75 7,42 7.15 6.51 5,50 5.66 2.75 3.00 4.43 4.53 3.75 June............ 6.75 6.35 7.54 7.21 6.42 5.50 5.76 2.75 2.69 4.56 4.69 3.75 July............ 6.21 5.68 7.58 7.15 6.51 5.50 ........2....7..5... 2.19 4,57 4.40 3.75 i Based on average yield of weekly tenders during month. 3 Based on average of lowest and highest quotation during month. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. Note.—For description and back data, see ’'International Finance,” 4 Rate in effect at end of month. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date United d ( is + c ) o u o n r t . i nc N en e t t i ve Canada discou o n r t inc N en e t t i ve q K ( u a i b o n U d a t g j s . a , S d i t s i o . t ) 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 r d n ) f ( o p - r o w ) u n a o r d n d L ( o f n a o v d f o o r n ) qu A i o n t s e d qu A o U d t j . a . S t i . t o o n U St n a i t t e e s d C S ( a f p n a o r v a e f d o a d r a ) C f ( d o a - o n rw ) l a l d a a o r i r n s a d n C ( a f n a o v a f d o a r ) Canada basis 1968 Apr. 5.............. 6.90 5.23 1.67 -4.83 -3,16 6.83 6.63 5.23 + 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 12.............. 7.09 5.33 1.76 -3.54 -1.78 6.35 6.17 5.33 + .84 -1.14 -.30 19.............. 7.03 5.27 1.76 -2.64 -.88 6. 10 5.93 5.27 + .66 -1.51 -.85 26.............. 6.90 5.17 1.73 -2.14 -.41 6.00 5.83 5.17 + .66 -1.61 -.95 Aug. 2.............. 6.90 4.86 2.04 -2.04 .00 5.99 5.82 4.86 + .96 -1.52 -.56 9.............. 6.78 4.94 1.84 -2.17 - .33 5.87 5.71 4.94 + .77 -1.54 -.77 16.............. 6.75 5.07 1.68 -2.42 - ,74 5.83 5.67 5.07 + .60 -1.19 -.59 23.............. 6.72 5.10 1.62 -2.36 -.74 5.73 5.57 5.10 + .47 -1.15 -.68 30.............. 6.78 5.18 1.60 -2.60 -1,00 5.47 5.32 5.18 + .14 -1.02 -.88 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S, and Canadian rates are market offer rates 11 a.m, Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1460, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-90 MONEY RATES □ SEPTEMBER 1968 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Argentina Austria Belgium Canada Ceylon Denmark Finland (peso) (schilling) (franc) (dollar) (rupee) (krone) (markka) (pound) (dollar) 1963. .72447 223.10 3.8690 2.0052 92.699 21.015 14.484 131.057 1964. .71786 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 1965. .59517 222.78 3.8704 2.0144 92.743 20.959 14.460 31.070 1966. .48690 2223.41 3111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967................................................. .30545 ............ 111.25 3.8688 2.0125 92.689 20.501 14.325 *29.553 1967--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 93.004 519.806 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 6111.54 3.8635 2.0136 92.171 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 July................................................... .28474 ....... 111.09 3.8706 2,0013 93.123 16.669 13.317 23.763 Aug................................................... .28469 ............ 111.14 3.8702 1.9982 93.213 16.673 13.302 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 ( I ru 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 l i l l a a a y r) ­ M (p e e x s i o c ) o ( e g N r u l i a e l n t d h d e ­ s r) 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--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 1968--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 2.5.119 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 July................................................... 20.107 24.945 13.240 239.00 .16068 27740 32.551 8.0056 27.611 Aug.................................................. 20.105 24.919 13.241 239.11 .16090 27803 32.540 8.0056 27,566 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 o g c r a u t l d u o ­ ) ( S A r o a fr u n i t c d h a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( S e fr r w a la n i n t c z d ) ­ ( U p K d o n i o 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 I.6663 19.414 23.152 279.21 1965. , 276.82 13.985 3.4829 139.27 1.6662 19.386 23.106 279.59 1966. 276.54 13.984 3.4825 139.13 1.6651 19.358 23.114 279.30 1967............................................................. '11276.69 12131.97 13.985 3.4784 139.09 1.6383 19,373 23.104 275.04 1967--Aug................................................... 137.89 13.981 3.4766 138.75 .6637 19,394 23.061 278.53 Sept................................................... 137.81 13.978 3.4755 138.66 .6640 19.381 23,027 278.37 Oct............................................ 137.78 13.979 3.4736 138.64 1.6635 19.341 23,035 278.32 Nov................................................... 128.28 13.985 3.4654 139.05 91.5831 19.326 23.146 9266.18 Dec................................................... 111.95 13.996 3.4817 139.84 .4236 19.341 23.158 240.63 1968--Jan.................................................... 1 2.09 13.997 3.4861 140.00 .4236 19.366 23.017 240.91 Feb.................................................... 1 2.10 14.001 3.4866 140.01 .4231 19.361 22.994 240.92 Mar................................................... 61 1.66 14.005 3.4854 M39.46 .4264 19.345 23.085 6239.97 Apr................................................... 111.75 14.000 3.4891 139.58 .4283 19.338 23.049 240.18 May.................................................. 1 1.17 14.000 3.4874 138.85 .4283 19.354 23.118 238.92 June.................................................. 1 0.95 14.000 3.4867 138.58 .4279 19.352 23.233 238.46 July................................................... 111.20 14,000 3.4863 138,89 .4282 19.351 23.265 239.00 Aug................................................... 1 1.26 13.999 3.4863 138.96 .4284 19.369 23.223 239.11 i A new markka, equal to 100 old markkaa, was introduced on Jan. 1. 5 Quotations not available Nov. 21, 1967. 1963. 10 Quotations not available Nov. 21-27, 1967. 2 Based on quotations through Feb. Il, 1966. 11 Based on quotations through July 7, 1967. 3 Effective Feb. 14, 1966, Australia adopted the decimal currency 12 Effective July 10, 1967, New Zealand adopted the decimal currency system, The new unit, the dollar, replaces the pound and consists of 100 system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. cents, equivalent to 10 shillings or one-half the former pound. * Effective Oct. 12, 1967, the Finnish markka was devalued from 3,2 to 4.2 markkaa per U. S, dollar. Quotation not available Oct. 12. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, s 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 ? Effective Jan. I, 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. I, 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, see “International Finance,” 7.5 rupees per U.S. dollar. Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A—91 For special tables see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-92 STOCK MARKET CREDIT □ SEPTEMBER 1968 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE N.Y. STOCK EXCHANGE CARRYING MARGIN ACCOUNTS JUNE 1960-67 (In millions of dollars) Item 1960 1961 1962 1963 1964 1965 1966 1967 DEBIT BALANCES Cash on hand and in banks.......................................................................... 366 422 437 422 466 515 601 686 Securities—• Borrowed.................................................................................................... 96 152 151 181 201 255 515 805 Sold, delivery pending (failed to deliver)............................................... 334 530 368 275 369 448 823 1,588 Net debit balances due from—■ Member firms of national securities exchanges: N.Y. Stock Exchange............................................................................ 134 216 169 219 199 201 226 231 Other exchanges.................................................................................... 22 36 22 25 25 20 31 60 All other customers exclusive of general partners or voting stock­ holders secured by— U.S. Govt, securities.......................................................................... 104 48 32 31 33 24 46 29 Other collateral................................................................................... . 3,081 4,024 3,604 4,916 5,351 5,149 5,800 6,203 Net debit balances in general partners’ or voting stockholders’ individual investment & trading accounts.............................................. 37 58 74 70 78 84 90 109 Debit balances in— Finn investment accounts......................................................................... 309 293 243 247 264 325 358 477 Firm trading & underwriting accounts.................................................... 374 582 520 694 959 1,445 1 ,240 1 ,618 Commodity margins on deposit with banks & commodity guaranty funds on deposit...................................................................... 23 22 30 31 28 41 55 49 All other debit balances................................................................................ 218 309 303 347 389 410 519 1,024 Total....................................................................................... 5,097 6,694 5,954 7,460 8,364 8,917 10,304 12,880 CREDIT BALANCES Money borrowed.......................................................................................... 2,331 2,880 2,305 4,027 4,499 4,541 3,969 3,690 From banks and trust companies: U.S. agencies of foreign banks. ....................................................... 806 817 525 815 859 711 552 494 U.S. banks............................................................................................. 1,473 2,016 1 ,739 3,156 3,626 3,803 3,378 3,118 In New York City............................................................................... 1,157 1,515 1,007 1,852 2,273 2,662 2,518 2,215 Elsewhere............................................................................................ 316 501 732 1,303 1,353 1,180 859 903 From other lenders (not including members of national securities exchanges).................................................................................... 51 47 41 56 14 28 39 79 Securities— Loaned.................................................................................................... 167 233 211 244 268 340 664 674 Bought, delivery pending (failed to receive)............................................ 352 568 363 289 393 433 851 1,660 Net credit balances due to member firms of national securities exchanges: N.Y. Stock Exchange............................................................................ 120 174 153 202 192 187 205 261 Other exchanges....................................................................................... 1 1 23 17 12 14 12 26 48 Credit balances of other customers exclusive of general partners or voting stockholders: Free credit balances................................................................................... 1 ,006 1 ,264 1 ,330 1,115 1,126 1,298 1,643 2,208 Other net credit balances.......................................................................... 246 335 441 369 405 477 836 1 ,155 Credit balances & money borrowed which are subordinated to general creditors under approved agreements.........................; •• • • 25 31 51 90 111 141 154 190 Net credit balances in general partners’ or voting stockholders' individ­ ual investment & trading accounts......................................... 37 47 43 36 37 48 59 81 Credit balances in firm investment & trading accounts............................. 61 100 76 116 173 214 270 556 All other credit balances (except those included in next item)................. 129 241 193 200 c279 17 306 504 704 Net balance in capital, profit & loss, & general partners’ or voting stock­ holders’ drawing accounts..................................................... 612 797 771 759 c866 c919 1,125 1,353 Total........................................................................................ 5,097 6,695 5,954 7,460 8,364 8,917 10,304 12,880 Money borrowed, according to collateral.' Customer collateral: . Exempt securities (under Sec. 3(a) of Securities Exchange Act—• 1934): U.S. Govt, or agency............................................................................. 96 38 23 27 10 12 18 13 Other securities...................................................................................... 123 108 93 188 156 104 100 103 Nonexempt securities or mixed collateral................................................ 1,722 2,289 1,833 3,181 3,616 3,301 2,919 2,184 Firm or general partners’ or voting stockholders’ collateral: Exempt securities (under Sec. 3(a) of Securities Exchange Act—• 1934): U.S. Govt, or agency......................................................................... 107 41 24 19 166 320 136 336 Other securities.................................................................................. 99 104 106 119 125 116 147 127 Nonexempt securities or mixed collateral........................................... 182 300 227 492 425 686 645 926 Unsecured................................................................................................... 1 1 1 1 2 3 1 Value of securities sold under repurchase agreements............................... 24 27 42 44 134 137 122 326 Number of firms............................................................................................ 328 336 337 335 331 331 328 324 Note.—End of month figures. For explanation of these figures see conceptually identical to these items, as shown in the table on Stock “Statistics on Margin Accounts,’* Sept. 1963 Bulletin, The items “net Market Credit, p. A-34, but the data differ somewhat because of minor debit balances due from all other customers exclusive of general partners differences in coverage, statistical discrepancies in reporting, and the date or voting stockholders, “and “credit balances of other customers exclusive of reporting. of general partners or voting stockholders—free credit balances’’ are Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1968 □ STOCK MARKET CREDIT A-93 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE CARRYING MARGIN ACCOUNTS ON JUNE 28, 1968 (In millions of dollars) NYSE AMEX Total Item member member all firms firms1 firms DEBIT BALANCES Cash on hand and in banks....................................................................... 868 11 879 Securities—• Borrowed............................................................................................... 1,347 14 1,361 Sold delivery pending (failed to deliver),........................................... 3 722 121 3,843 Net debit balances due from member firms of national securities exchanges............................................................................................... 484 23 507 Debit balances due from all other customers, exclusive of general partners or voting stockholders—-Total................................................... 9,249 38 9 287 In stock margin accounts....................................................................... 6,130 20 6 150 In convertible bond margin accounts....................................................... 100 'Toi In subscription accounts......................................................................... 104 105 In cash accounts....................................................................................... 2,675 15 2,690 In other (including U.S, Govt, securities)............................................... ’240 ■> 241 Net debit balances in general partners’ or voting stockholders’ individual investment and trading accounts........................................ 100 2 102 Debit balances in— Firm investment accounts...................................................................... 637 44 682 Firm trading and underwriting accounts.............................................. 1.673 128 1,801 Commodity margins on deposit with banks, and commodity guaranty funds on deposit................................................................................ 66 67 All other debit balances............................................................................. 1,103 9 1 112 Total...................................................................................... 19,250 390 19,640 CREDIT BALANCES Money borrowed—Total 2, , ........................................................... 4,017 127 4,144 From banks and trust companies: In New York City............................................................................... 2,419 41 2,460 Elsewhere in the U.S.......................................................................... '927 39 966 From U.S. agencies of foreign banks.................................................... 581 20 601 From other lenders (not including members of national securities exchanges)................................................................................... 89 28 117 Securities— Loaned..................................................................................................... 1,542 2 1,544 Bought, delivery pending (failed to receive)......................................... 4^014 113 4,127 Net credit balances due to member firms of national securities exchanges.............................................................................................. 431 14 446 Credit balances due to other customers exclusive of general partners or voting stockholders—Total............................................................... 5,453 46 5,499 tn free credit balances in rash accounts............................................. 2,911 2 932 In free credit balances in mart*in accounts............................................. 616 3 619 In credit balances in short accounts........................................................ 1,064 7 1,072 In other net credit balances.................................................................... l',086 14 1,100 Credit balances and money borrowed which are subordinated to general creditors under approved agreements............................................... 243 5 248 Net credit balances in general partners or voting stockholders indivjdtial investment and trading accounts............................................ i 10 3 112 Credit balances in firm investment and trading accounts....................... 589 26 616 Net balance in capital accounts 3 and profit and loss accounts and general partners’ or voting stockholders’ drawing accounts........... 1 ,711 37 1 ,748 All other credit balances....................................... • ............................... • 1 ^035 16 1 ,052 Total..................................................................................... 19,061 410 19,471 Memorandum: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of If S. Govt. or its agencies.................. 61 2 63 Entirely by bonds other than convertible bonds and U.S. Govt, securities....................................................... .................. 30 30 Ry nonexempt securities or mixed collateral................................ 2,804 13 2,817 Secured by firm or general partners’ or voting stockholders’ collateral: Entirely by obligations of U.S. Govt, or its agencies.................. 48 94 142 Entirely by bonds other than convertible bonds and U.S. Govt, securities....................................................................... 101 1 102 By nonexempt .securities or mixed collateral.................................... 957 14 972 Unsecured borrowing other than subordinated to general creditors 13 3 16 Total...................................................................................... 4,017 127 4,144 Amount to be repaid for securities sold under repurchase agreements... 384 67 450 Number of firms........................................................................................ 346 19 365 1 These are members of the American Stock Exchange (AMEX) that are not members of the New York Stock Exchange (NYSE); AMEX members that are also NYSE members are included under NYSE. 2 Excluding subordinated borrowing. J Excluding subordinated indebtedness included in the item above, “Credit balances and money borrowed, etc.” Note—Details may not add to totals because of rounding. 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 Joseph R. Coyne, Special Assistant to the Board Robert E. Nichols, Special 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 Lloyd M. Schaeffer, Chief Federal Reserve LEGAL DIVISION Examiner David B. Hexter, General Counsel Thomas J. O’Connell, Deputy General DIVISION OF SUPERVISION AND REGULATION Counsel Frederic Solomon, Director Jerome W. Shay, Assistant General Counsel 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 J. Charles Partee, Associate Director John N. Lyon, Assistant Director Stephen H. Axilrod, Adviser Thomas A. Sidman, Assistant Director Lyle E. Gramley, Adviser Tynan Smith, Acting Assistant Director Kenneth B. Williams, Adviser Stanley J. Sigel, Associate Adviser DIVISION OF PERSONNEL ADMINISTRATION Tynan Smith, Associate Adviser Edwin J. Johnson, Director Murray S. Wernick, Associate Adviser John J. Hart, Assistant Director James B. Eckert, Assistant Adviser Peter M. Keir, Assistant Adviser DIVISION OF ADMINISTRATIVE SERVICES 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 John Kakalec, Controller Robert Solomon, Director 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-94 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-95 FEDERAL OPEN MARKET COMMITTEE Wm. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer W. Braddock Hickman Frank E. Morris J. Dewey Daane Monroe Kimbrel J. L. Robertson Hugh D. Galusha, Jr. Sherman J. Maisel William W. Sherrill George W. Mitchell Robert C. Holland, Secretary Merritt Sherman, Assistant Secretary John H. Kareken, Associate Economist Kenneth A. Kenyon, Assistant Secretary Robert G. Link, Associate Economist Arthur L. Broida, Assistant Secretary Maurice Mann, Associate Economist Charles Molony, Assistant Secretary J. Charles Partee, Associate Economist Howard H. Hackley, General Counsel John E. Reynolds, Associate Economist David B. Hexter, Assistant General Counsel 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

A-96 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Ul uiauvn Deputy Chairman First Vice President in charge of branch Zip code Boston...................... ...02106 Howard W. Johnson Frank E. Morris Charles W. Cole Earle O. Latham New York..................10045 Everett N. Case Alfred Hayes Kenneth H. Hannan William F. Treiber Buffalo................ ...14240 Robert S. Bennett A. A. Maclnnes, Jr. Philadelphia............ ...19101 Willis J. Winn Karl R. Bopp Bayard L. England Robert N. Hilkert Cleveland................. ...44101 Albert G. Clay W. Braddock Hickman Logan T. Johnston Walter H. MacDonald Cincinnati.......... ...45201 Graham E. Marx Fred O. Kiel Pittsburgh.......... ...15230 F. L. Byrom Clyde E. Harrell Richmond................ ...23213 Wilson H. Elkins 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 I. Hatch Monroe Kimbrel John C. Wilson Robert E. Moody, Jr. Birmingham.......35202 Mays E. Montgomery J. T. Harris Jacksonville........ ...32201 Castle W. Jordan Edward C. Rainey 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, Board 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 $.35. Sec. 9. Federal Reserve Banks. 1965. 36 FUNCTIONS. 1963. 298 pp. pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ ANNUAL REPORT. rency. 1963. 11 pp. $.35. Sec. 12. Money Rates FEDERAL RESERVE BULLETIN. Monthly. $6.00 per and Securities Markets. 1966. 182 pp. $.65. annum or $.60 a copy in the United States and Sec. 14. Gold. 1963. 24 pp. $.35. Sec. IS. Inter­ its possessions, Bolivia, Canada, Chile, Colom­ national Finance. 1962. 92 pp. $.65. Sec. 16 bia, Costa Rica, Cuba, Dominican Republic, (New). Consumer Credit. 1965. 103 pp. $.65. Ecuador, Guatemala, Haiti, Republic of Hon­ BANK MERGERS & THE REGULATORY AGENCIES: duras, Mexico, Nicaragua, Panama, Paraguay, APPLICATION OF THE BANK MERGER ACT OF Peru, El Salvador, Uruguay, and Venezuela; 10 1960. 1964. 260 pp. $1.00 a copy; 10 or more or more of same issue sent to one address, $5.00 sent to one address, $.85 each. per annum or $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. BANKING MARKET STRUCTURE & PERFORMANCE IN METROPOLITAN AREAS: A STATISTICAL FEDERAL RESERVE CHART BOOK ON FINANCIAL STUDY OF FACTORS AFFECTING RATES ON AND BUSINESS STATISTICS. Monthly. Annual BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or subscription includes one issue of Historical more sent to one address, $.40 each. Chart Book. $6.00 per annum or $.60 a copy in the United States and the countries listed above; FARM DEBT. Data from the 1960 Sample Survey 10 or more of same issue sent to one address, of Agriculture. 1964. 221 pp. $1.00 a copy; 10 $.50 each. Elsewhere, $7.00 per annum or $.70 or more sent to one address, $.85 each. a copy. MERCHANT AND DEALER CREDIT IN AGRICUL­ HISTORICAL CHART BOOK. Issued annually in Sept. TURE. 1966. 109 pp. $1.00 a copy; 10 or more Subscription to monthly chart book includes sent to one address, $.85 each. one issue. $.60 a copy in the United States and MONETARY THEORY AND POLICY: A BIBLIOGRA­ countries listed above; 10 or more sent to one PHY. Part I—Domestic Aspects. 137 pp. $1.00 address, $.50 each. Elsewhere, $.70 a copy. a copy; 10 or more sent to one address, $.85 FLOW OF FUNDS IN THE UNITED STATES, 1939­ each. 53. 1955. 390 pp. $2.75. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. DEBITS AND CLEARING STATISTICS AND THEIR USE. 1959. 144 pp. $1.00 a copy; 10 or more RULES OF ORGANIZATION AND PROCEDURE­ sent to one address, $.85 each. BOARD OF GOVERNORS OF THE FEDERAL RE­ SERVE SYSTEM. 1967. 16 pp. THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 a copy; 10 or more sent to one address, PUBLISHED INTERPRETATIONS OF THE BOARD OF $.85 each. GOVERNORS, as of June 30, 1967. $2.50. INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 172 pp. $1.00 a copy; 10 or more sent to one a copy; 10 or more sent to one address, $.85 address, $.85 each. each. U.S. TREASURY ADVANCE REFUNDING, JUNE THE FEDERAL RESERVE ACT, as amended through 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 Nov. 5, 1966, with an appendix containing pro­ or more sent to one address, $.40 each. visions of certain other statutes affecting the Federal Reserve System. 353 pp. $1.25. SURVEY OF FINANCIAL CHARACTERISTICS OF CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or SUPPLEMENT TO BANKING AND MONETARY STA­ more sent to one address, $.85 each. TISTICS. Sec. 1. Banks and the Monetary Sys­ tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. THE PERFORMANCE OF BANK HOLDING COM­ 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 PANIES. 1967. 29 pp. $.25 a copy; 10 or more pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. sent to one address, $.20 each. A-97 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-98 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1968 BANK CREDIT-CARD AND CHECK-CREDIT PLANS: INTEREST RATES AND THE DEMAND FOR CON­ A FEDERAL RESERVE SYSTEM REPORT. July SUMER DURABLE GOODS, by Michael J. Ham­ 1968. 102 pp. $1.00 a copy; 10 or more sent to burger. Dec. 1967. one address $.85 each. THE LAGS BETWEEN INVESTMENT DECISIONS AND REAPPRAISAL OF THE FEDERAL RESERVE DIS­ THEIR CAUSES, by Shirley Almon. Feb. 1968. COUNT MECHANISM: EFFECTS OF MONEY ON INTEREST RATES, by Wil­ REPORT OF A SYSTEM COMMITTEE, 1968, 23 pp. liam E. Gibson. Mar. 1968. $.25 a copy; 10 or more sent to one address, A DISAGGREGATED MODEL OF THE U.S. BALANCE $.20 each. OF TRADE, by William H. Branson. May 1968. REPORT ON RESEARCH UNDERTAKEN IN CON­ THE LABOR MARKET AND POTENTIAL OUTPUT OF NECTION WITH A SYSTEM STUDY. 1968. 47 THE FEDERAL RESERVE-MIT ECONOMETRIC pp. $.25 a copy; 10 or more sent to one MODEL: A PRELIMINARY REPORT, by A. J. Telia address, $.20 each. and P. A. Tinsley. Aug. 1968. THE REGULATION OF SHORT-TERM CAPITAL MOVE­ Limited supply of the following papers, in mimeo­ MENTS: WESTERN EUROPEAN TECHNIQUES IN graphed or similar form, available upon request THE 1960's, by Rodney H. Mills, Jr. Sept. 1968. for single copies: EVOLUTION OF THE ROLE AND FUNCTIONING Printed in full in the Bulletin. OF THE DISCOUNT MECHANISM. 1968. 65 pp. (Reprints available as shown in following list.) A STUDY OF THE MARKET FOR FEDERAL FUNDS. REPRINTS 1 968. 47 pp. (From Federal Reserve Bulletin unless preceded THE SECONDARY MARKET FOR NEGOTIABLE by an asterisk.) CERTIFICATES OF DEPOSIT. 1968. 89 pp. ADJUSTMENT FOR SEASONAL VARIATION. Descrip­ THE DISCOUNT MECHANISM IN LEADING IN­ tion of method used by Board in adjusting eco­ DUSTRIAL COUNTRIES SINCE WORLD WAR nomic data for seasonal variations. June 1941. II. 1968. 216 pp. 11 PP- STAFF ECONOMIC STUDIES SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. Studies and papers on economic and financial sub­ jects that are of general interest in the field of LIQUIDITY AND PUBLIC POLICY, Staff Paper by economic research. Stephen H. Axilrod. Oct. 1961. 17 pp. SEASONALLY ADJUSTED SERIES FOR BANK Summaries only printed in the Bulletin. CREDIT. July 1962. 6 pp. (Limited supply of mimeographed copies of full INTEREST RATES AND MONETARY POLICY, Staff text available upon request for single copies.) Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. MEASURES OF INDUSTRIAL PRODUCTION AND RECENT CHANGES IN LIQUIDITY, Staff Paper by FINAL DEMAND, by Clayton Gehman and Cor­ Daniel H. Brill. June 1963. 10 pp. nelia Motheral. Jan. 1967. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. BUSINESSES VIEW BANKING SERVICES: A SURVEY OF CEDAR RAPIDS, IOWA, by Lynn A. Stiles. MEASURING AND ANALYZING ECONOMIC GROWTH, July 1967. Staff Paper by Clayton Gehman. Aug. 1963. 14 pp. EMPIRICAL LITERATURE ON THE U.S. BALANCE CHANGES IN BANKING STRUCTURE, 1953-62. Sept. OF TRADE, by Charles K. Harley. July 1967. 1963. 8 pp. THE BOOM IN OFFICE BUILDINGS, by Robert ECONOMIC CHANGE AND ECONOMIC ANALYSIS, Moore Fisher. Aug. 1967. Staff Paper by Frank R. Garfield. Sept. 1963. CUSTOMERS VIEW BANK MARKETS AND SERVICES: 17 pp- A SURVEY OF ELKHART, INDIANA, by George G. THE OPEN MARKET POLICY PROCESS. Oct. 1963. Kaufman. Aug. 1967. 11 PP- A TEST OF THE DEPOSIT RELATIONSHIP HYPOTH­ NEW SERIES ON FEDERAL FUNDS. Aug. 1964. ESIS, by Neil B. Murphy. Sept. 1967. 31 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A-99 YIELD DIFFERENTIALS IN TREASURY BILLS, 1959­ NEW BENCHMARK PRODUCTION MEASURES, 1958 64, Staff Paper by Samuel I. Katz. Oct. 1964. AND 1963. June 1967. 4 pp. 20 pp. REVISED INDEXES OF MANUFACTURING CAPACITY RESEARCH INTO BANKING STRUCTURE AND COM­ AND CAPACITY UTILIZATION. July 1967. 3 pp. PETITION. Nov. 1964. 17 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON REVISION OF BANK DEBITS AND DEPOSIT TURN­ MEMBER BANKS. July 1967. 6 pp. OVER SERIES. Mar. 1965. 4 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK MEASURES OF BANKING STRUCTURE AND COM­ UNDERWRITING OF MUNICIPAL REVENUE PETITION. Sept. 1965. 11 pp. BONDS. Aug. 1967. 16 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff THE ECONOMIC PAUSE IN WESTERN EUROPE. Economic Study by Lyle E. Gramley and Sam­ Oct. 1967. 17 pp. uel B. Chase, Jr. Oct. 1965. 25 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ MODEL, Staff Economic Study by Frank de ING WORLD. Staff Paper by Frank R. Garfield. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. Nov. 1965. 15 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, RESEARCH ON BANKING STRUCTURE AND PER­ JULY-OCT. 1967. Jan. 1968. 20 pp. FORMANCE, Staff Economic Study by Tynan RECENT CREDIT AND MONETARY DEVELOPMENTS. Smith. Apr. 1966. 11 pp. Feb. 1968. 11 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. Study by James Pierce. Aug. 1966. 9 pp. 1968. 7 pp. REVISION OF WEEKLY REPORTING MEMBER BANK BALANCE OF PAYMENTS PROGRAM: REVISED SERIES. Aug. 1966. 4 pp. GUIDELINES FOR BANKS AND NONBANK FINAN­ TOWARD UNDERSTANDING OF THE WHOLE DE­ CIAL INSTITUTIONS. Mar. 1968. 9 pp. VELOPING ECONOMIC SITUATION, Staff Eco­ TREASURY AND FEDERAL RESERVE FOREIGN EX­ nomic Study by Frank R. Garfield. Nov. 1966. CHANGE OPERATIONS. Mar. 1968. 22 pp. 14 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN A REVISED INDEX OF MANUFACTURING CAPACITY, 1960-67. Apr. 1968. 23 pp. Staff Economic Study by Frank de Leeuw with QUARTERLY SURVEY OF CHANGES IN BANK LEND­ Frank E. Hopkins and Michael D. Sherman. ING PRACTICES. Apr. 1968. 6 pp. Nov. 1966. 11 pp. RECENT CAPITAL MARKET DEVELOPMENTS. May THE ROLE OF FINANCIAL INTERMEDIARIES IN 1968. 11 pp. U.S. CAPITAL MARKETS, Staff Economic Study BANKING AND MONETARY STATISTICS, 1967. by Daniel H. Brill, with Ann P. Ulrey. Jan. Selected series of banking and monetary statis­ 1967. 14 pp. tics for 1967 only. Mar. and May 1968. 20 pp. REVISED SERIES ON COMMERCIAL AND INDUS­ CONSUMER INSTALMENT CREDIT. June 1968. TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. •3 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES FINANCE COMPANIES. Feb. 1967. 5 pp. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. CONSUMER INSTALMENT CREDIT. Mar. 1967. 12 REVISION OF MONEY SUPPLY SERIES. June 1968. PP- 6 PP- SURVEY OF FINANCE COMPANIES, MID-1965. Apr. RECENT MONETARY AND CREDIT DEVELOP­ 1967. 26 pp. MENTS. July 1968. 11 pp. MONETARY POLICY AND ECONOMIC ACTIVITY: A MONETARY RESTRAINT AND BORROWING AND POSTWAR REVIEW. May 1967. 22 pp. CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 MONETARY POLICY AND THE RESIDENTIAL MORT­ GAGE MARKET. May 1967. 13 pp. PP- RECENT CHANGES IN STRUCTURE OF TIME AND BANK FINANCING OF AGRICULTURE. June 1967. SAVINGS DEPOSITS. July 1968. 20 pp. 23 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. EVIDENCE ON CONCENTRATION IN BANKING MARKETS AND INTEREST RATES, Staff Eco­ 4 PPnomic Study by Almarin Phillips. June 1967. FEDERAL FISCAL POLICY IN THE 196O's. Sept. H PP- 1968. 18 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 39-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 pai 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, 1 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 Employment, 60, 62, 63 Banks and the monetary system, 18 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, 2 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, 92 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-100 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-101 Interest rates—Continued Reserve requirements, member banks, 10 Foreign countries, 88, 89 Reserves: Money market rates, 31, 89 Central banks and govts., 86 Mortgage yields, 33, 51 Commercial banks, 25, 27 Time deposits, maximum rates, 11 Federal Reserve Banks, 12 Yields, bond and stock, 32 Member banks, 4, 6, 11, 17, 25 International capital transactions of the U.S., 74 Residential mortgage loans, 48, 49, 50, 51 International institutions, 72, 73, 86, 88 Retail credit, 52 Inventories, 66 Retail sales, 60 Investment companies, issues and assets, 45 investments (.See also specific types of investments): Sales finance companies, loans, 52, 53, 55 Banks, by classes, 19, 24, 27, 35 Saving: Commercial banks, 23 Flow of funds series, 68 Federal Reserve Banks, 12, 15 National income series, 67 Life insurance companies, 36 Savings and loan assns., 36, 41, 49 Savings and loan assns., 36 Savings deposits (See Time deposits) Savings institutions, principal assets, 35, 36 Labor force, 62 Securities (See also U.S. Govt, securities): Loans (See also specific types of loans): Federally sponsored agencies, 37 Banks, by classes, 19, 24, 26, 35 International transactions, 82, 83 Commercial banks, 23, 24, 30 New issues, 43, 44, 45 Federal Reserve Banks, 4, 12, 15 Silver coin and silver certificates, 16 Insurance companies, 36, 49 State and local govts.: Insured or guaranteed by U.S., 48, 49, 50 Deposits, 25, 28 Savings and loan assns., 36, 49 Holdings of U.S. Govt, securities, 40, 41 New security issues, 43, 44 Manufacturers: Ownership of securities of, 24, 27, 35, 36 Capacity utilization, 60 Yields and prices of securities, 32, 33 Production index, 57, 60 State member banks, 21, 23 Margin requirements, 10 Stock market credit, 34, 92 Member banks: Stocks: Assets and liabilities, by classes, 19, 24 New issues, 44, 45 Borrowings at Reserve Banks, 6, 12 Yields and prices, 32, 33 Deposits, by classes, 11 Number, by classes, 19 Tax receipts, Federal, 39 Reserve position, basic, 8 Time deposits, 11, 17, 18, 19, 25, 28 Reserve requirements, 10 Treasurer’s account balance, 38 Reserves and related items, 4, 17 Treasury cash, Treasury currency, 4, 16, 18 Mining, production index, 57, 60 Treasury deposits, 4, 12, 38 Money rates (See Interest rates) Money supply and related data, 17 Mutual funds (See Investment companies) Unemployment, 62 Mutual savings banks, 18, 19, 22, 35, 40, 41, 48 U.S. balance of payments, 70 U.S. Govt, balances: Commercial bank holdings, 25, 28 National banks, 21, 23 National income, 66, 67 Consolidated condition statement, 18 Member bank holdings, 17 National security expenditures, 39, 66 Treasury deposits at Federal Reserve Banks, 4, Nonmember banks, 21, 23, 24, 25 12, 38 U.S. Govt, securities: Open market transactions, 14 Bank holdings, 18, 19, 24, 27, 35, 40, 41 Dealer transactions, positions, and financing, 42 Payrolls, manufacturing, index, 60 Federal Reserve Bank holdings, 4, 12, 15, 40, 41 Personal income, 67 Foreign and international holdings, 12, 78, 82, 83 Postal Savings System, 18 International transactions, 78, 82 Prices: New issues, gross proceeds, 44 Consumer and wholesale commodity, 60, 64 Open market transactions, 14 Security, 33 Outstanding, by type of security, 40, 41, 43 Production, 56, 60 Ownership of, 40, 41 Profits, corporate, 46, 47 Yields and prices, 32, 33, 89 United States notes, 16 Utilities, production index, 57, 60 Real estate loans: Banks, by classes, 24, 26, 35, 48 Delinquency rates on home mortgages, 51 Veterans Administration, 48, 49, 50 Mortgage yields, 33, 51 Nonfarm mortgage foreclosures, 51 Weekly reporting banks, 26 Type of holder and property mortgaged, 48, 49,50 . . Reserve position, basic, member banks, 8 Yields (See Interest rates) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 39-A hguorht 4-A segap ot era secnerefeR( Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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