Federal Reserve Bulletin, 1968-10

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

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

FEDERAL RESERVE B U LLETIN NUMBER 10 □ VOLUME 54 □ OCTOBER 1968 CONTENTS 878 Construction and Mortgage Markets Staff Economic Studies: 801 Summary 803 How Does Monetary Policy Affect The Economy? 815 Business Financing by Business Finance Companies 828 Statements to Congress 853 Record of Policy Actions of the Federal Open Market Committee 872 Law Department 879 Announcements 881 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- 92 Board of Governors and Staff A— 93 Open Market Committee and Staff; Federal Advisory Council A- 94 Federal Reserve Banks and Branches A- 95 Federal Reserve Board Publications A- 97 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE Charles Molony Daniel H. Brill Robert C. Holland Robert Solomon 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

Construction and Mortgage Markets OUTLAYS for new construction early this autumn appeared to be moving above the record high reached last spring. With housing starts at an advanced rate in the third quarter, residential outlays —which are normally the largest segment of construction and which tend to lag starts—had already regained their spring peak. Moreover, market expectations for a further rise in outlays have improved in the changed financial climate following passage of the Revenue and Expenditure Control Act last June. Since June fears of “disintermediation” at major lending institu­ tions have diminished considerably. And with permitted ceiling rates raised on Government-assisted mortgages and on conven­ tional loans in some States, commitments by lenders for new resi­ dential and other mortgages have begun to increase again. While availability of funds has continued to limit this increase, net in­ flows to major lenders, including repayment flows, showed some im­ provement in August and September. Moreover, by late summer yields on bonds and related financial instruments had declined ap­ preciably below previous peaks though they have risen again in re­ cent weeks, and mortgage interest rates generally were leveling off or tending downward. So far this year, an important factor in the larger dollar volume of construction activity—as of economic activity generally—has been higher costs. Although total construction in the first 9 months Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

788 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 as a whole averaged more than a tenth above a year earlier, about half of the advance as measured by the Census Bureau resulted from rising costs rather than real output. Another significant factor in construction markets this year has been the backlog of unsatisfied demands for residential structures accumulated after more than 2 years of underbuilding. This has raised the possibility that, as in the initial phase of the extended expansion in the general economy which began in 1961, residen­ tial construction may once again play a strongly supportive role in total economic developments over the period ahead. INSTITUTIONAL Apart from the potential support promised by the recent shift in ADJUSTMENTS fiscal policy, real estate and mortgage markets have already bene­ fited from a number of regulatory and other adjustments designed to correct some of the major structural distortions that had de­ veloped in recent years. For example, beginning in the autumn of 1966, Congress au­ thorized the Federal Home Loan Bank Board, the Federal Reserve Board, and the Federal Deposit Insurance Corporation, after con­ sultation and periodic review, to establish maximum interest rates payable on the more important “consumer-type” depositary claims. A major objective of this action was to contribute to a more equi­ table distribution in the flow of funds to the specialized lenders on residential mortgages—savings and loan associations and mutual savings banks—vis-a-vis commercial banks in the market for con­ sumer savings. And to the same end, savings and loan associations have been encouraged by the FHLBB to modify the structure of their liabilities by placing greater emphasis on the sale of savings certificates at higher rates for longer maturities instead of making across-the-board adjustments on regular accounts. As mortgage yields required by lenders moved higher in the first half of 1968, regulatory ceiling limits were raised in a number of States. The higher limits were particularly important in the East where State ceilings had been effectively impeding flows of funds to mortgages. And in the case of Government-assisted home mort­ gages, last May the 6 per cent statutory ceiling, which had stood since the inception of the FHA-insured program in 1934, was temporarily suspended by Congress. Pending further legislative review, the Secretary of the Department of Housing and Urban Development was instructed to set regulatory rates at his discre­ tion to meet market requirements, and he promptly raised such Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 789 rates for FHA-insured loans to 6-14 per cent per annum. Regu­ latory rates for VA-guaranteed loans were raised accordingly. Also in May the “secondary market” operations of the Federal National Mortgage Association—which recently became a sepa­ rate and private corporation—were shifted to a “free-market” sys­ tem. Under the old system the volume of FNMA purchases for its secondary market portfolio had been determined by the volume of offerings of eligible Government-underwritten mortgages at prices set from time to time by FNMA. Under the new system FNMA indicates each week the total volume of forward commit­ ments it will make to purchase eligible mortgages within 3 months, 6 months, and a year ahead, leaving prices essentially to be deter­ mined by the bidders. This departure was designed to provide a more orderly and efficient allocation of FNMA’s resources than hitherto. It has also provided a comprehensive weekly indicator of yield expectations in a well-defined sector of the mortgage market for the first time in history. In addition to the changes already in operation, the extremely comprehensive Housing and Urban Development Act of 1968 was signed by the President on August 1. Basic implementation of many of the provisions of this Act will be delayed because of fund­ ing requirements and time needed to develop and adjust to new regulations. Consequently, although the long-run implications are very substantial, only a limited net stimulus to residential and other construction in particular and to real estate markets in general may be realized from this legislation during the current fiscal year. Altogether, the Act offers the possibility of significant changes on a number of fronts. These include improving the competitive effectiveness of mortgage instruments vis-a-vis bonds and other capital market instruments, broadening the investment and liabil­ ity options available to major mortgage lenders, increasing incen­ tives for direct equity as well as mortgage investment by private groups, and widening the range of effective demands for housing through direct subsidies for mortgage costs of lower-income rental as well as homeowner properties in central cities. CONSTRUCTION In September, total outlays for new construction were at an esti­ mated seasonally adjusted annual rate of nearly $85 billion, more than 8 per cent above a year earlier and more than a tenth higher than in 1967 as a whole. While private nonresidential construction was below the peak reached earlier this year, residential construe- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

790 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 tion had regained its high of last April and May. As a result, for one of the few periods since early 1966, residential construction accounted for a greater share—one-third—of total construction outlays than private nonresidential activity. Public outlays—Fed­ eral, State, and local—represented somewhat over a third, an ex­ ceptionally large share. l| NEW CONSTRUCTION outlays regain peak, RATIO SCALE, BILLIONS OF DOLLARS with RESIDENTIAL higher and PUBLIC still strong 1962 1964 1966 1968 Census Bureau data on value of new construction put in place at seasonally adjusted annual rates. “Private residential” excludes farm structures. Data for “private nonresidential” (total private excluding nonfarm residential) beginning July 1962 and for “public” beginning January 1963 reflect use of new series for certain components not available for earlier years. Recent data are preliminary; September estimated by Federal Reserve. Construction costs. For all types of structures, a major consider­ ation in recent years has been the uptrend in construction costs. This uptrend has significant implications for both the volume and composition of supply and demand for new construction over the long run. During the past 3 years, construction costs to builders have not only continued to rise but have apparently increased at a faster pace than costs in the economy as a whole. In fact, as Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 791 measured by the Census Bureau, in the first 9 months of 1968 such costs rose by nearly 6 per cent from a year earlier or double the rate as recently as in 1965. Costs of materials—notably for lumber and plywood—have risen sharply this year. However, the rise in construction-worker wage rates has also been rapid. And both raw and developed land costs, which are not included in the construction cost indexes, have resumed a rise that had been interrupted in 1966. Moreover, the still limited supply of new residential and other units has con­ tributed to further advances in prices of existing as well as of new structures. If allowance is made for increased space and other im­ provements in quality, the uptrend in prices and rents for fin­ ished housing units, for example, has apparently not been out of line with the rise in average family incomes. However, the mix of new dwelling units being supplied has shifted further toward the upper grades. As a result, the needs of lower-income families have increasingly not been met. And for all types of buyers, the amount of mortgage and other funds required to finance a given physical unit of construction has grown appreciably. Nonresidential. Unlike residential construction activity, outlays for private nonresidential construction have fluctuated within relatively narrow limits since early 1966 when they were slowed by the tightening financial conditions which developed at that time. This year, despite some over-all decline since February, they have apparently held above their level of a year earlier. A supporting factor in private as well as public nonresidential construction outlays over the past 3 years has been the high rate of expenditures for hospitals, educational buildings, and related structures. This has been associated with increasing demands re­ sulting from evolving demographic requirements and from ex­ panded private and public assistance to assure broader availability of services. Within the industrial-commercial group, industrial construction activity had dropped appreciably after early 1967, following one of the most rapid and extended expansions of production capacity in the postwar period. Since last winter, such activity has moved downward to a sharply lower rate. Commercial construction—of­ fices, stores, restaurants, and garages—had also declined through most of 1967, but it rebounded in early 1968 and in recent months it has remained near the highs of last spring. With office and clerical labor forces continuing to grow, rates of office and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

792 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 store construction have not matched increased demands. Vacancy rates, as a result, have apparently remained minimal. Through the 1960’s, outlays for public construction have shown a notably sustained uptrend. Early this autumn they were running nearly 15 per cent above a year earlier. While Federal plans for this fiscal year call for a further reduction in construction outlays, the full impact of such curtailment may be delayed by the need to complete projects already under way. Also, activity in State and local projects, which is partly dependent on Federal assistance and which in recent years has constituted seven-eighths of the public total, has continued to increase. Residential. Seasonally adjusted private housing starts, which had dropped in late spring after a sustained recovery from the 1966 low, rose above the 1.5 million unit annual rate this sum­ mer. In September they moved even higher, to the 1.6 million rate, including farm starts. Apart from the exceptional volatility of the series, the sudden shift from the reduced second-quarter rate ap­ parently reflected more a reaction to the new financial market pos­ sibilities finally opened by adoption of fiscal restraint last June and to long-anticipated adjustments in usury ceilings in New York and New Jersey than to the degree of actual improvement in net in­ flows of funds to major mortgage lenders so far this year. Never­ theless, the third-quarter increase helped to raise the average for the first 9 months as a whole moderately above the 1.47 million unit average for all of 1965. In the earlier phase of the housing recovery after April of 1967, residential builders had been handicapped by a resumption of tightening in the mortgage and other capital markets. But in sharp contrast with 1966, cash flows to major lenders remained large through most of the year and mortgage commitments expanded to keep the recovery going. As a result, by the first quarter of this year, starts were running nearly two-thirds above the low reached in the fourth quarter of 1966. Over the first 9 months as a whole, both single and multifamily structures have shared in the further advance. However, the extent of rise by type of structure has varied even though basic demand pressures for all types of dwell­ ings have cumulated as completions over most of the past 3 years have averaged appreciably below normal increases in household formation and demolitions of existing structures. Most marked has been the expanded rate of multifamily starts, which thus far this year has matched historic highs and has Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 793 accounted for a record share of the market. The magnitude of the increase for multifamily structures has reflected the relatively greater freedom of investors in such properties from usury ceiling constraints and the greater ability of such investors, compared with buyers of homes, to obtain funds from outside as well as with­ in the mortgage market under the highly competitive conditions HOUSING STARTS continue recovery, 2 sharply for multifamily units RATIO SCALE, MILLIONS OF UNITS which account for record share PER CENT Census Bureau data, including farm, beginning 1959. Detail by type of structure adjusted by Federal Reserve to Census total for period prior to 1959. Figures for multifamily in 1945 and 1946 (not shown here) were: 24,000 and 73,000 units, respectively. Data for 1968 are averages of first three quarters. prevailing. It has also reflected the influence of modified but still attractive tax incentives for apartment investment. In addition, the continuing pressures of higher land and other costs have been an important influence. Finally, apartment activity has been spurred by an extended and widespread decline in rental vacanices to the lowest rates since 1957 and by a pattern of demographic growth that remains unusually favorable for rental demands. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

794 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 For single-family housing—still the dominant though less dy­ namic sector in the housing market—the year-to-year advance since 1966 has also been significant. But in the first 9 months of this year, the seasonally adjusted annual rate has barely exceeded 900,000 units—low even by the standards of the early 1960’s and strikingly under the peaks reached in the 1950’s. With near-term expectations about mortgage developments highly uncertain through most of this year, stocks of new houses available for sale from speculative builders have so far been kept appreciably below pre-1966 levels, thereby further limiting potential sales. Under the changed supply conditions that have prevailed in re­ cent years, shipments of mobile homes, which are not included in the housing starts figures, have accelerated further. In the first half of this year, such shipments were about a third higher than a year earlier. In all of 1967, a record year, they had reached 240,000 units, compared with 216,000 in 1965 and 151,000 in 1963. Transactions in existing houses, which are an important source of support to demand for new houses, have increased appreciably further so far this year, according to the National Association of Real Estate Boards. As in the case of new homes, offerings of such houses have been limited, however, by the high discounts which have prevailed, particularly for Government-underwritten mort­ gages. A byproduct of the limited supply of homes offered for sale has been a further drop in foreclosures and in serious defaults; while other factors, including high employment and rising incomes, have also been important, generally mortgagors who have become overextended have—under conditions reminiscent of the 195O’s—• found a market for their homes. Unlike the recovery phase in 1967, starts this year have shown pronounced regional variations. These variations have been owing in part to distortions in flows of funds caused by below-market rate ceilings, particularly in the eastern States. In the third quarter, after these ceilings had finally been raised to more viable levels, starts in the Northeast soared to the highest rate in more than 6 years. Underscoring the breadth of potential demands for shelter space this year, rental vacancy rates in all regions in the second quarter generally remained near the abnormally low rates reached in the first quarter. At an average of 5.7 per cent of all rental units avail­ able and fit for use, they were still among the lowest in more than a decade and sharply below earlier highs, particularly in the West and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 795 in the North Central States. Homeowner vacancy rates, which aver­ aged 1 per cent nationally in the second quarter and which tend to be less volatile than those for rental properties, were also exception­ ally low. 3 (STARTS RECOVERY varies by region but... RATIO SCALE, THOUSANDS OF UNITS NORTHEAST NORTH CENTRAL SOUTH Wf SI I 1 ' I VACANCY RATES are uniformly low PER cent Census Bureau data. Private housing starts, including farm, at seasonally adjusted annual rates. Vacancy rates, not seasonally adjusted, relate to vacant, not dilapidated dwellings avail­ able for rent. Latest data for starts, third quarter; for rental vacancy rates, second quarter. MORTGAGE MARKET Mortgage markets, which have been in considerable flux since late DEVELOPMENTS 1965, apparently had begun to move toward a more settled position in recent months. Though availability rather than cost of funds has bulked as the major deterrent to further increases in over-all real-estate activity this year, since June there have been indications of some improvements in both. Home-mortgage terms. In the primary market for home mort­ gages, contract interest rates on conventional first mortgages had reached a peak of 7.30 per cent for loans on new homes in July after a rise of 90 basis points from the recent low in April of 1967, according to the Federal Housing Administration. In recent months they have changed little on the average, reflecting mainly completion of upward structural adjustments permitted by the State regulatory ceiling changes which culminated in early July. In the more sensitive secondary mortgage market, yields on 6% per cent FHA-insured new-home mortgages actually dropped 10 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

796 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 basis points in July from a high of 7.52 per cent in June. Since then, they have continued to decline. Moreover, with bond yields appreciably below earlier highs in August and September, the yield-differential in favor of such mortgages improved materially and was in the vicinity of 100 basis points for the first time since early 1967. In addition, discounts on FHA-insured mortgages in September, although still relatively restrictive at more than 4 points, were well below the record of nearly 8 points indicated last April. An important factor in the lowered level of discounts—which are regularly required by lenders in order to obtain competitive yields on fixed-rate instruments—was the suspension by Congress, pending further review in 1969, of the 6 per cent statutory ceiling. For both FHA-insured and VA-guaranteed home mortgages the regulatory ceiling has remained at the level of 6% per cent estab­ lished in early May. In FNMA’s new weekly auction market, yields for 6-month commitments—the most desired type—began declining in June 4 | MORTGAGE YIELDS lag turn in bond yields PER CERT PER ANNUM Mortgage data based on FHA field office opinions for market areas of insuring office cities. For “conventional,” average interest rates are for first mortgages on new houses. For “FHA-insured,” weighted averages of private secondary market prices of certain new-house mortgages (which are shown as a discount from par in bottom panel) converted to annual yield. Thin line indicates period of adjustment to changes in contractual interest rate. For corporate bonds, weighted aver­ age of new publicly offered yields (Moody’s Aaa and Aa and A adjusted to Aaa—thin line indi­ cates period of no representative issues). Latest data, September. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 797 IMPLICIT YIELD - FNMA_______________ almost as soon as the surtax and related legislation was passed, ............ " ..... '..........................CENT and they did not begin to level off until early October. The ex­ tended decline, which was accompanied by an easing in demand and by some reduction by FNMA in the volume of accepted bids, amounted to more than 50 basis points by early October. Even allowing for the inexperience of bidders with the new auc­ Average secondary market yield im­ tion technique and the difficult market conditions under which bid­ plicitly offered by successful bidders on 6-month commitments after al­ ders have operated, thus far yield levels and movements for each lowance for commitment fee and required purchase and holding of of the three types of commitments have tended to be surprisingly FNMA stock, and assuming prepay­ ment period of 15 years for certain 30- similar. year Government-underwritten home mortgages. Yields shown are gross While mortgage lenders have insisted on unusually high yields before deduction of fee of 50 basis points regularly paid by FNMA for this year, they generally have tended to hold other mortgage terms mortgage-servicing. Latest data, week ending October 14. relatively little changed and at comparatively liberal levels by most earlier standards. As a result, in September maturities on conven­ tional first mortgages for new and used homes, respectively, aver­ aged 25.5 and 22.6 years and loan-to-price ratios were 74.2 and 72.6 per cent, according to the FHLBB. These terms were generally somewhat more favorable to borrowers than the average for 1967 as a whole and for most other recent years. And with the uptrend in prices of properties involved in transactions still continuing, aver­ age loan amounts in recent months have been at or only slightly below earlier peaks. These developments, however, have been as­ sociated with a high degree of selectivity among borrowers and types of properties. Mortgage debt formation. Net mortgage debt formation for all holders has continued to expand this year at a rate more than seven-tenths above the low reached in the fourth quarter of 1966 and not far from the advanced rate reached in the fourth quarter of 1967. At that time net mortgage generation for all types of properties, including farm, approached a seasonally adjusted an­ nual rate of $28 billion, actually above the advanced average in 1965 and the two preceding years. The net increase for nonfarm residential mortgages was at a particularly high annual rate of $21 billion—including more than $16 billion for 1- to 4-family mort­ gages; and the increase for commercial mortgage debt exceeded an annual rate of $5 billion. The recovery, which through 1967 was most marked for 1- to 4-family mortgage debt, has been associated with a return by sav­ ings and loan associations since the second quarter of that year to their position as the major lenders on single-family properties in particular and residential properties in general. The recovery has Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

798 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 also been associated with a sharp further expansion of holdings by FNMA—in the market for Government-underwritten mortgages —as shown in the chart. In the first half of this year, combined net purchases by FNMA on all portfolios—including special assistance and management and liquidation, which recently were placed under the separate aus­ pices of the new Government National Mortgage Associationtotaled $1.6 billion and were a fifth above the previous high in the first half of 1966. As a result, FNMA, which at midyear held less than 3 per cent of total mortgage debt outstanding, contrib­ uted well over a tenth of the net increase in the first half of 1968 MORTGAGE HOLDINGS are up sharply further for FNMA this year RATIO SCALE, BILLIONS OF DOLLARS FNMA OTHER GOVT. AGENCIES with continued variation by PRIVATE LENDERS 100 BO SAVINGS AND LOAN ASSNS. 60 40 COMMERCIAL BANKS MUTUAL SAVINGS BANKS Data estimated by Federal Reserve as required to supplement reports of Federal agencies and private sourcs. Farm debt is included in total holdings shown for financial institutions and for Federal agencies. “Residential” includes multifamily mortgages. Latest figures shown, third quarter 1968; those for the last three quarters in particular are preliminary. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 799 for all holders. In that period FNMA’s net increase ranked second only to that of the savings and loan associations in the market for home mortgages. Among lenders with the broadest investment options, commer­ cial banks also have contributed appreciably to the net expansion in mortgage debt, particularly in the first half of this year. In a situation in which the yield-differential in favor of mortgages as against bonds has generally been quite narrow, net mortgage lend­ ing by mutual savings banks, on the other hand, has remained relatively limited and has been associated with a record expansion in net purchases of corporate bonds. Moreover, life insurance companies showed net disinvestment in mortgage debt on 1- to 4family properties in the first half of this year—as in 1967—for the second time in the postwar period. And partly reflecting greater emphasis on direct real estate investment, such institutions also continued to limit growth in their holdings of mortgages on in­ come—or multifamily and commercial—properties. This is a sec­ tor in which they normally lead. In contrast with the early 1960’s when mortgage funds were un­ usually ample in relation to demand, in recent years there has been less reliance on mortgage borrowing from the major lending insti­ tutions even for real estate purchases. This has been associated, in part, with increased resort to assumptions of existing mortgages by home buyers at rates considerably lower than those currently avail­ able on new mortgages. In addition, there has been an apparent in­ crease in direct equity investment and in the use of junior mort­ gages and purchase-money mortgages taken by builders of new properties and by sellers of existing properties in this changed and —allowing for administrative and other lags—potentially still changing market. 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 A TECHNIQUE FOR FORECASTING DEFENSE EXPENDITURES Harvey Galper and Edward Gramlich—Staff, Board of Governors Prepared as a staff paper in July 1967 and published in The Review of Economics and Statistics, vol. 50, no. 2, May 196S. This study attempts to develop a workable The equations are estimated by regression means of predicting quarterly defense spend­ methods. For purchases of defense goods, ing as measured in the national income ac­ the lag between awards and expenditures counts. Two components of defense spend­ is fitted to a polynomial by the Almon ing arc treated—purchases of goods and method. The shape of this lag is allowed to compensation of employees. Military prime vary in response to supply bottlenecks, de­ contract awards are used to estimate pur­ mand urgency, and the mix between shortchases of goods, and military personnel ob­ and long-lag military items. Supply bottle­ ligations to estimate employee compensa­ necks are represented by the capacity utili­ tion. Both of these leading series are pub­ zation rate and demand urgency by the rate licly available and are published sufficiently of growth of the Armed Forces. All of these in advance of actual expenditures to allow influences are found to have an important quarterly forecasting if the lags are reason­ effect on the award-expenditure lag. A much ably long, as they have been found to be. simpler equation explains employee com- 801 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

802 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 pensation—compensation is a function of quite accurate for two quarters ahead re­ recent military personnel obligations with a gardless of assumptions of future awards time trend to pick up the growth in salaries and obligations, and predictions only di­ of civilians employed by the Department of verged from actual values three and four Defense. quarters ahead if assumptions for future The equations were tested with data awards and obligations were inaccurate. on defense spending for 1966—a difli- The award-expenditure approach for de­ cult year for such an exercise and one fense purchases of goods also permits es­ that was intentionally omitted from the timation of a time series of private inven­ regression sample. The predictions were tory investment attributable to defense quite successful; when actual quarterly data goods-in-process. The distributed lag coef­ on personnel obligations and contract ficients are combined with assumptions awards were used, the forecasts missed an­ about the rate of production between con­ nual spending totals by only $0.5 billion, tract awards and final deliveries to deter­ with similar small misses in each quarter. mine in any period the private inventory Forecasts that were not based on actual change attributable to eventual defense pur­ values—but which could have been made at chases by the Federal Government. The the beginning of 1966 by using various as­ series shows that in periods of rapid change sumptions concerning contract awards and of contract awards, such as after the Korean personnel obligations—missed the annual war and during the early buildup for the total by slightly more; but even the least Vietnam war, inventory investment due to accurate forecasts missed the annual total defense goods-in-process could approach by only $1.1 billion. The equations were plus or minus $5 billion. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Study HOW DOES MONETARY POLICY AFFECT THE ECONOMY? Maurice Mann—Staff, Federal Reserve Bank of Cleveland As noted in the introduction to this section, author is responsible for the analyses and the Federal Reserve Bulletin from time to conclusions set forth, and the views ex­ time publishes in full staff studies that are pressed are not necessarily those of the of general interest to economists and others. Board of Governors, the Federal Reserve As in all staff economic studies, the Banks, or members of their staffs. My assignment is to review the influence of discuss with this group, in this setting, the monetary policy on the American economy. technical aspects of monetary theory. Never­ I do so from the vantage point of one who theless, let me say at the outset, I am im­ regularly attends the meetings of the Federal pressed with the irony of the fact that mone­ Open Market Committee in Washington tary economists still talk so much about the and who is therefore reasonably close to gulf between monetary theory and practice, policy. From that vantage point, it is very about incomplete knowledge regarding the clear that the Federal Reserve is keenly monetary process, about the problems of aware of the problems of understanding how implementing monetary policy, and about monetary policy affects the economy, as well the inability to identify adequately policy indicators, targets, and goals. I emphasize as the political, social, and economic prob­ irony because, measured by the amount of lems associated with the formulation and intellectual input, if not output, monetary implementation of policy. economics at this time is in the forefront of This paper makes no attempt to con­ the various disciplines of economics. tribute to the technical literature of theoreti­ cal monetary economics. Indeed, it would * * * literally be “carrying coals to Newcastle” to The current state of interest in monetary Note.—This article is based on a paper presented economics is near the fifth stage of a long at the Conference of University Professors, sponsored by the American Bankers Association and held at cyclical swing, the peak stage of the Diichley Park, England, September 10-13, 1968. It National Bureau of Economic Research concentrates on domestic impacts of monetary policy (NBER) reference cycle. A number of fac­ and deliberately avoids the international aspects. The author acknowledges the members of the re­ tors have influenced the surge of interest in search staff of the Federal Reserve Bank of Cleveland monetary economics: dissatisfaction with who were extremely helpful in the preparation of this the general performance of the economy— paper and others in the Federal Reserve System who criticized earlier drafts. Special acknowledgement is for example, the postwar inflation, the slug­ made to W. B. Hickman, President of the Federal Re­ gish growth of the late 195O’s and early serve Bank of Cleveland, for contributing to the environ­ ment of inquiry alive in the Federal Reserve System. 1960’s, and so on; the emergence of new or 803 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

804 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 newly compelling goals—balance of pay­ etary policy on the economy, the definition ments equilibrium; major structural changes of the best or most useful variables, and the in financial institutions—the postwar in­ delineation of the most relevant time di­ crease in the role of intermediation; recent mensions. While much progress has been refinements of economic theory; and the de­ achieved in resolving these issues, our velopment of new tools for quantitative knowledge of the monetary process is far analysis. In the United States, widespread from complete. In fact, economic theory interest in monetary economics has been and research probably will never provide evidenced in particular by The Report of the final answers under conditions of con­ the Commission on Money and Credit, the tinuing institutional and social change. As congressional review on the occasion of the a result, monetary economists have no need 50th anniversary of the Federal Reserve to fear technological unemployment. System in 1964, and the proliferation of Despite a great deal of empirical work doctoral dissertations and articles in profes­ on the linkages between monetary policy sional journals. Further evidence is found and aggregate demand sectors, there is still in the many large-scale econometric models little evidence that the relevant linkages— —including the Brookings-Social Science whatever they may be—can be reduced to Research Council mode!, the Federal Re- simple mechanistic relationships. The link­ serve-MTT model, and those of Teigen, ages are influenced by structural changes Goldfeld, and Goldfeld and Ando—that that policymakers cannot control and that contain extensive financial sectors [33; 31; econometric models, by their very nature, 87; 48; 5], There are also a few unique cannot handle. Changes in expectations and models of the economy that consist entirely propensities to spend, fiscal policy, and in­ of a single financial equation [Friedman and stitutional and financial market constraints Meiselman, 41], The Cambridge equation and rigidities—to name a few—are apt to is, of course, the prototype of all such have a significant effect on the results of models. monetary policy. With only moderate vested interest, T Even if we possessed complete knowledge submit that the current high status of mone­ in all these areas—in short, even if we had tary economics is fully justified, since most the last word from economic analysis—we empirical studies now indicate that financial would still be confronted with serious policy variables play an important role in the econ­ problems. Economic research has not yet omy. Thus, while interest in monetary eco­ provided policymakers with sufficient knowl­ nomics may recede from its current peak edge to evaluate the nature or extent of the stage, I predict that it will never progress to trade-offs among major ultimate policy stage nine, or the trough, of the NBER goals—for example, between unemployment cycle. Not only does money matter—it and inflation. In addition, an entire constel­ always has—but there are many intriguing lation of political and social phenomena in­ issues still unresolved—issues involving the troduces complications beyond the scope or pervasiveness of monetary influences and influence of monetary policy and policy­ the channels through which monetary effects makers. arc transmitted. Subsidiary but important Nonetheless, the dimensions of the prob­ issues include the selection of appropriate lems can be reduced even if the problems variables in analyzing the influence of mon­ themselves can never be completely solved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND THE ECONOMY 805 This is, in fact, the intent of recent research [Andersen, 2, 3; Hamburger, 55; Kaufman, efforts to provide more informed evalu­ 66, 67; as well as other papers, 96—103.] ations of the role and influence of monetary Such efforts are possible because of the policy. In this vein, I have been asked to environment of inquiry alive in the Federal comment briefly on recent Federal Reserve Reserve System and the active encourage­ efforts. The compelling need to know more ment of System officials. about the workings of the monetary process Despite such efforts, in the System and and the influence of monetary policy in a elsewhere, there is still wide disagreement changing institutional environment easily concerning the effects of monetary policy. explains the continuing interest of the Fed­ I would like to consider three of the more eral Reserve in monetary economics. This conspicuous areas of disagreement: the interest should not be misconstrued as a re­ transmission process, time lags, and sectoral awakening, since System research has always impacts. 1 will conclude by touching upon tried to augment knowledge of the monetary some of the issues related to the use of process. Instead, the reinvigoration—if it empirical research by policymakers. can be called that—represents a more * * * formal attempt to organize and coordinate the System’s research efforts in order to There seems now to be little quarrel that focus on crucial issues and questions. The monetary policy works through the supply formalization reflects in part the work of a schedules and prices of financial assets, small System research group, which in the thereby influencing the real sector of the summer of 1964 produced a document en­ economy. While there are various interpre­ titled “Linkages Between Monetary Policy tations of the transmission process, most are and the General Economy: A Framework concerned with the effects of portfolio ad­ for Research.” justments in response to disequilibria in­ Current research includes several System duced by monetary policy [Ando and Mo­ groups working on various aspects of the digliani, 6; Davis, 26; DePrano and Mayer, linkages, a group at the Board of Gover­ 32; Friedman and Meiselman, 41; Friedman nors developing an econometric model of and Schwartz, 42, 43; Modigliani, 76; the economy, and a joint effort with the Tobin, 90, 91], As spending units react to Social Science Research Council that in­ changes in relative prices of financial and volves System financing of academic econo­ real assets, the effects are transmitted to mists investigating the impact of selected aggregate levels of income and spending. financial variables. I serve as chairman of This broad description of the transmission one of the linkage working groups, which process appears to be acceptable to propo­ is primarily concerned with relationships nents of both the quantity theory approach between money market variables and other and the income expenditure approach. financial variables—for example, the re­ Money is important in both versions, al­ lationships between and among such vari­ though each assigns different properties to ables as bank reserves and deposits, cur­ the major variables in the linkage sequence, rency in circulation, bank credit, interest for example, in terms of timing, importance, rates, and so forth. The number of papers and response. produced by the members of this group is Unfortunately, recent empirical studies an indication of the results of their efforts have not shed much light on the transmis- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

806 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 sion process. While descriptions of the proc­ cretionary monetary policy is a destabilizing ess are reasonably complete, the empirical force and should be replaced by a rule to results are not sufficiently reliable and are increase the money supply at a constant still a matter of faith. Proponents of the in­ rate. come expenditure approach have provided Critics contend, on the other hand, that many hypotheses about the transmission Friedman’s lag is a statistical artifact since process. But the testing of alternative hy­ he compares the rate of change of the money potheses has not been completed, and the supply with the level of economic activity implied responses of crucial financial and [Kareken and Solow, 4; Culbertson, 24, 25; real variables to monetary policy actions Davis, 26], Friedman himself grants that if have not been adequately explored. These the rate of change of the money supply is same limitations apply with about equal replaced by deviations in the level of the force to the hypotheses advanced by pro­ money supply from its long-run trend, the ponents of the quantity theory approach, average lag between monetary peaks so which also suffers from the absence of a measured and peaks in economic activity detailed explanation of the transmission shrinks from 16 months to 5 months [37]. process that can be tested empirically. Thus, Nevertheless, long lags have been found for it is obvious that much research remains to business spending on fixed capital [Almon, be done on both the theory and empirical 1; Kareken and Solow, 4; de Leeuw, 27] verification of the transmission process, in­ and expenditures on consumer durable cluding further examination of expecta- goods [Hamburger, 55], Preliminary results tional effects and the range and extent of the of the FRB-MIT econometric model also interest sensitivity of the demand for money suggest that the lags are quite long [de (see for example, Gramley and Chase Leeuw and Gramlich, 31]. [49]). However, even if theoretical ques­ Consistent findings of long lags have led tions concerning the transmission process some to conclude that monetary policy is could be resolved, this would not necessarily poorly suited for short-run stabilization. make life much easier for policymakers. This view, however, does not give proper The monetary policy recommendations of weight to several important considerations. economists do not vary solely because of For one thing, the consistency with which divergent views on the transmission process; long lags have been found, even in areas they also vary because of differences in where we would expect them to be short, evaluating both the length and variability arouses suspicion regarding estimating pro­ or instability of time lags and various sec­ cedures. The estimates of long lags are based toral effects. on a narrow range of variation in monetary A crucial question for policy concerns the policy. Evidence from the 1966—67 period time it takes policy actions to affect final suggests that sharp and substantial shifts in spending decisions—the so-called outside monetary policy can precipitate dramatic lags. While the evidence on the length of changes in the economy in a very short lags is sketchy, there is little empirical evi­ period of time. Thus, while the empirical dence to support an a priori belief in short evidence currently available may reduce lags. Friedman estimates the outside lag of confidence in the short-lag hypothesis, it monetary policy to be quite long and highly fails to do much more than that. variable [37, 42, 43], He concludes that dis­ With respect to the question of variability Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND THE ECONOMY 807 or instability of lags, perhaps more precise of adjustment. Some studies find business formulations of the transmission process fixed investment to be affected appreciably may establish whether lags vary in an un­ by interest rates but only after a consider­ stable fashion. More sophisticated estimat­ able lag [de Leeuw, 27; Jorgenson, 64; Liu, ing techniques, which now permit the esti­ 71], Interest rates have also been found to mation of a greater range of distributed lag affect inventory investment [Goldfeld, 48; patterns, can account for changes in lag Kuznets, 68; Liu, 71] and residential con­ patterns in response to varying economic struction [Liu, 71; Maisel, 72; Muth, 78], conditions. Although the econometric prop­ For a long time, studies of consumer ex­ erties of these estimators are not completely penditures suggested that the consumer was known, the initial success of various efforts insensitive to changes in interest rates, per­ is encouraging and suggests that the vari­ haps because the stock of liquid assets held ability of some lags—for example, in invest­ by households was the only monetary vari­ ment spending—may be a stable function able typically included in the consumption of a few variables [Tinsley, 89; Bischoff, 7, function. Recently, however, by treating 8; Greenberg, 51]. consumer expenditures on durable goods as The problem of time lags is also associ­ investment, a number of economists have ated with the sectoral impact of monetary found that interest rates are one of the major policy actions. Sectoral effects were recog­ determinants of the demand for automobiles nized at the time of the revitalization of and other durables, although the lags again monetary policy in the 1950’s but were appear to be quite long [de Leeuw, 30; treated more as an academic curiosity than Hamburger, 55; Shapiro, 85]. For example, as a significant policy consideration. The Hamburger finds that it takes more than debate of the 195O’s centered on the use of four quarters for changes in interest rates selective as opposed to general policy in­ to have a significant effect on purchases of struments. Recently, however, there has consumer durables [55], been heightened concern regarding the With regard to the impact of monetary distribution of the burden of adjustment to policy on State and local government financ­ changes in monetary policy among various ing, Morris found that sales of municipal sectors of the economy. Housing, State and securities are fairly sensitive to interest rates local governments, and small business are [77], For example, the volume of new issues the commonly cited examples of sectors that increased substantially in both the 1953—54 may bear an undue burden of adjustment and 1957-58 recessions, when interest rates to tight money. As a result, monetary policy­ fell. Morris also found, however, that the makers are obliged to consider questions of effects of interest rates on various categories sectoral incidence and equity, as well as of State and local projects arc not uniform; stabilization. The need for more precise for example, securities issued to finance knowledge in this area is clearly imperative. school construction were found to be gen­ A number of recent studies have contrib­ erally insensitive. These findings are more uted insights into interrelationships among or less confirmed by a recent Federal Re­ various sectors of the economy, but most serve survey of the effects of monetary re­ of the information on sectoral effects is iso­ straint in 1966 on the largest State and local lated and fragmentary. Little effort has been governmental units [73], The survey results devoted to analyzing intersectoral burdens indicate that high interest rates in 1966 re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

808 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 suited in a 20 per cent reduction of planned powerful instrument than had been thought long-term borrowing by those units, as well to be the case. Nevertheless, policymakers as in the temporary postponement of a con­ are aware of the differential effects of vari­ siderable amount of bond offerings. Again, ous policy tools or combinations of policy however, high interest rates had little effect tools. The development of econometric on borrowing for educational purposes. The models for policy purposes should contrib­ System study also indicates that monetary ute to this knowledge. In fact, econometric restraint in 1966 had little effect on capital models could make a substantial contribu­ outlays of State and local governments tion to policy formulation, particularly if within the survey period. some of the problems associated with em­ Monetary restraint in 1966 clearly sug­ pirical research are resolved. gested the potential importance of sectoral effects. Although severe sectoral effects * * * might be desirable from the standpoint of In this regard, rather than helping to the objectives of general stabilization policy, solve the problems of policymakers and the costs may be unacceptable from the monetary policy, the proliferation of models standpoint of sectoral goals. In addition, ad­ seeking to explain relationships between verse sectoral impacts may contribute to monetary policy variables and economic over-all economic imbalances that policy policy goals has merely increased the may be trying to minimize. While policy number and complexity of decisions to be may not be able to avoid selective effects, made. Putting it another way, before quanti­ policymakers must be aware that such fication can help policy formulation, policy­ effects may become too severe. makers need reliable criteria to choose The extent to which uneven sectoral im­ among the competing models. pacts are due to a sector’s sensitivity to Evaluation and selection of a model can­ monetary policy actions or to different lag not stop with a consideration of the implicit profiles is not clear. Furthermore, while and explicit assumptions on which it is built, some sectoral effects may reflect normal the way in which the variables are related to economic responsiveness, others may be due one another, the method of estimation, and to institutional rigidities and constraints. In the stability of the parameters. The adjust­ either case, policymakers must be circum­ ment process implied by the model must spect in their actions—at least until admin­ also be evaluated by simulating plausible istrative or legislative changes reduce or economic shocks to determine whether the eliminate some of the more important rigidi­ results reasonably conform to the real ties and constraints. By and large, however, world. Additionally, there is the problem since administrative and legislative changes of knowing when to abandon a model and usually occur slowly, they cannot be con­ take up a new one. For example, when and sidered a flexible policy tool. how can it be judged that the underlying In contrast, monetary policy over the past assumptions of a model are violated by several years has been flexible and inno­ changing economic phenomena, and when vative. All of the general policy tools have and how can it be determined that an equa­ been used extensively and in an interrelated tion is no longer compatible with changing manner, and the Federal Reserve has institutions? The failure to deal with such learned that Regulation Q is a much more issues deprives most models of their useful- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND THE ECONOMY 809 ness [Griliches, 52], since users cannot dis­ results of econometric studies. For one tinguish valid shifts in the underlying eco­ thing, it would help to have a modest nomic structure from errors of specification, amount of standardization in model build­ poor theory, and so forth. ing to facilitate easy comparison of models. In view of the fact that policymakers are In this regard, it would not seem too difficult aware of economic and financial develop­ to establish a standard notational system, as ments on a day-to-day, week-to-week, and in the physical sciences. Similarly, wherever month-to-month basis, a model using, say, possible, it would help to have standardiza­ quarterly data—even if well structured— tion of the time period over which various would not be sufficient for policy use. If the models are estimated. The use of different “perfect” quarterly model were only to tell time periods clouds the question of how de­ us what various economic indicators would pendent a particular model is on the time be at the end of a calendar quarter, policy­ period chosen for estimation [Christian, makers would not know the desired be­ 23], Most current models provide little havior of individual variables during the justification—other than for data considera­ quarter that would guarantee the predicted tions or allowing for enough degrees of free­ end-of-quarter results. Thus, if monetary dom—for the choice of time period. An­ policy decisions were to depend completely other suggestion involves the matter of on econometric models, and if “fine-tuning” defining variables more precisely. One need were the order of the day, policymakers not go beyond the many concepts of the would probably need a set of “nested” per­ money supply to point up the problems in fect models: an annual model for the long this area, with respect to theoretical as well run, a quarterly model for the intermediate as empirical implications. term, a short-term model adjusted to the In summary, I do not mean to imply a dating of central bank (FOMC) decisions, downgrading of the potential usefulness of a weekly model to keep track of movements econometric models in formulating and im­ in financial variables between the dates of plementing monetary policy. A carefully major policy decisions, and a daily model constructed model making use of a modern for guiding open market operations. Each high-speed computer can explicitly account model would have to be consistent within for a greater number of more complex re­ the broader models encompassing it—and lationships than an individual or group of all would have to yield reliable results. individuals. We are, however, a long way I would make several suggestions to both from having all the answers. Indeed, some economists and econometricians to encour­ tend to argue that we are still a long way age the use of models by policymakers. from asking all the questions—or even the These suggestions are certainly of a sub­ right ones. As our knowledge improves, the sidiary nature, but could simplify the task questions that will be asked become all the of policymakers and expand the use of the more important. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

810 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 BIBLIOGRAPHY Thomas. “Liquidity Functions in the American Economy,” Econometrica, vol. 28, no. 4 (October 1. Almon, Shirley. “The Lags Between Invest­ 1960), pp. 810-34. ment Decisions and Their Causes,” Staff Eco­ 12. Brown, Edgar Cary, et al. Stabilization Poli­ nomic Studies, no. 42. Washington: Board of cies. Englewood Cliffs, N.J.: Prentice Hall, 1963. Governors, Federal Reserve System, February 13. Brownlee, Oswald, and Conrad, Alfred. 1968. “Effects Upon the Distribution of Income of a 2. Andersen, Leonall C. “A Study of Factors Tight Money Policy,” in Brown, E. C., et al. Affecting the Money Stock: Phase One,” Staff Stabilization Policies. Englewood Cliffs, N.J.: Economic Studies. Washington: Board of Gov­ Prentice Hall, 1963, pp. 499-558. ernors, Federal Reserve System, October 1965. 14. Brunner, Karl. “The Role of Money and 3.-------. “Liquidity Considerations and Mon­ Monetary Policy,” Monthly Review, Federal Re­ etary Management,” Staff Economic Studies, no. serve Bank of St. Louis, vol. 50 (July 1968), 21. Washington: Board of Governors, Federal Re­ pp. 9-24. serve System, April 1966. 15. Brunner, Karl, and Meltzer, Allan H. “Pre­ 4. Ando, Albert, Brown, E. Cary, Solow, dicting Velocity: Implications for Theory and Robert M., and Kareken, John. “Lags in Fiscal Policy,” The Journal of Einance, vol. 18 (May and Monetary Policy,” in Brown, E. C., et al. 1963), pp. 319-59. Stabilization Policies. Englewood Cliffs, N.J.: 16. —---. “Some Further Investigations of Prentice Hall, 1963, pp. 1-163. Demand and Supply Functions for Money,” The 5. Ando, Albert, and Goldfeld, Stephen. “An Journal of Finance, vol. 19 (May 1964), pp. Econometric Model for Stabilization Policies.” 240-83.------------------------------------’ ’ Unpublished paper presented to the Federal Re­ 17. Cacy, J. A. “Alternative Approaches to the serve System Committee on Financial Analysis, Analysis of the Financial Structure,” Monthly Re­ November 1966. view, Federal Reserve Bank of Kansas City, 6. Ando, Albert, and Modigliani, Franco. “The March 1968, pp. 3-9. Relative Stability of Monetary Policy and Invest­ 18. Cagan, Philip. Determinants and Effects of ment Multiples,” The American Economic Re­ Changes in the Money Stock. New York: Colum­ view, vol. 55 (September 1965), pp. 693-728. bia University Press, 1965. 7. Bischoff, Charles W. “Elasticities of Substi­ 19. Carlson, Keith M., and Karnosky, Denis S. tution, Capital Malleability, and Distributed Lag “The Influence of Fiscal and Monetary Actions Investment Functions." Unpublished paper pre­ on Aggregate Demand: A Quantitative Ap­ sented at the December 1966 meeting of the praisal.” Unpublished paper, Federal Reserve Econometric Society. Bank of St. Louis, October 1967. 8. . “Lags in the Fiscal and Monetary 20. Chow, Gregory. “Multiplier, Accelerator, Impacts on Investment in Producers’ Durable and Liquidity Preference in the Determination of Equipment.” Unpublished paper presented to the National Income in the United States,” The Re­ Conference on Effect of Investment Tax Credit view of Economics and Statistics, vol. 49 (Feb­ and Accelerated Depreciation on the Level of ruary 1967), pp. 1-15. Investment. 21. . “On the Long-Run and Short-Run 9. Brill, Daniel H. “Criteria for Conduct of Demand for Money,” The Journal of Political Monetary Policy: Implications of Recent Re­ Economy, vol. 74 (April 1966), pp. 111-29. search,” Staff Economic Studies. Washington: 22. Christ, Carl. “A Short-Run Aggregate De­ Board of Governors, Federal Reserve System, mand Model of the Interdependence and Effects December 1965. of Monetary and Fiscal Policies with Keynesian 10. . “Can the Government ‘Fine-Tune’ and Classical Interest Elasticities,” The American the Economy?” in Standards for Guiding Mone­ Economic Review, vol. 57 (May 1967), pp. tary Action. Prepared for hearings before the 434-43. Joint Economic Committee, U.S. Congress (90th 23. Christian, James W. “A Further Analysis Cong., 2nd sess.). Washington: Government of the Objectives of American Monetary Policy,” Printing Office, 1968, pp. 157-63. The Journal of Finance, vol. 23, no. 3 (June 11. Bronfenbrenner, Martin, and Mayer, 1968), pp. 465-77. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND THE ECONOMY 811 24. Culbertson, John M. “Friedman on the Lag Policy,” The Journal of Political Economy, vol. in Effect of Monetary Policy,” The Journal of 69 (October 1961), pp. 447-66. Political Economy, vol. 68 (December 1960), 38. (cd.). “The Quantity Theory of pp. 617-21. Money—A Restatement,” Studies in the Quantity 25. . “The Lag in Effect of Monetary Theory of Money, pp. 3-21. Chicago: The Uni­ Policy: Reply,” The Journal of Political Economy, versity of Chicago Press, 1956. vol. 69 (October 1961), pp. 467-77. 39. . “Postwar Trends in Monetary 26. Davis, Richard G. “The Role of the Money Theory and Policy,” National Banking Review, Supply in Business Cycles,” Monthly Review, vol. 1 (September 1964), pp. 1-9. Federal Reserve Bank of New York, vol. 50 40. . “The Role of Monetary Policy,” (April 1968), pp. 63-73. The American Economic Review, vol. 58 (March 27. de Leeuw, Frank. “The Demand for Capi­ 1968), pp. 1-17. tal Goods by Manufacturers: A Study of Quar­ 41. Friedman, Milton, and Meiselman, David. terly Time Series,” Econometrica, vol. 30, no. 3 “The Relative Stability of Monetary Velocity and (July 1962), pp. 407-23. the Investment Multiplier in the United States,” 28.------“The Demand for Money—Speed in Brown, E. C., et al. Stabilization Policies. of Adjustment, Interest Rates, and Wealth,” Staff Englewood Cliffs, N.J.: Prentice Hall, 1965, pp. Economic Studies. Washington: Board of Gov­ 165-268. ernors, Federal Reserve System, September 1965. 42. Friedman, Milton, and Schwartz, Anna J. 29. . “A Model of Financial Behavior,” A Mottelary History of the United States, 1867­ in Duesenbcrry, Fromm, Klein, and Kuh. The 1960. Princeton: National Bureau of Economic Brookings Quarterly Econometric Model of the Research, 1963. United States. Chicago: Rand McNally, 1965, 43. . “Money and Business Cycles,” pp. 465-530. ’ The Review of Economics and Statistics, vol. 45, 30. . “A Portfolio Model of Household no. 1, part 2, Supplement (February 1963), pp. Saving and Investment.” Unpublished paper, 32-78. ' Board of Governors, Federal Reserve System, 44. Fromm, Gary. “Recent Monetary Policy: June 1966. An Econometric View,” National Banking Re­ 31. de Leeuw, Frank, and Gramlich, Edward. view, vol. 3 (March 1966), pp. 299-306. “The Federal Reserve-MIT Econometric Model,” 45. Fromm, Gary, and Klein, Lawrence R. Federal Reserve Bulletin, vol. 54 (January 1968), “The Brookings Model Volume: A Review pp. 11-40. Article: A Comment,” The Review of Economics 32. DcPrano, Michael, and Mayer, Thomas. and Statistics, vol. 50, no. 2 (May 1968), pp. “Tests of the Relative Importance of Autonomous 235-40. ’ Expenditures and Money,” The American Eco­ 46. Gibson, William E. “Effects of Money and nomic Review, vol. 55 (September 1965), pp. Interest Rates,” Staff Economic Studies, no. 43. 729-52. Washington: Board of Governors, Federal Re­ 33. Duesenberry, J. S., Fromm, G., Klein, L. serve System, March 1968. R., and Kuh, E. The Brookings Quarterly Econo­ 47. Gibson, William E., and Kaufman, George metric Model of the United States. Chicago: Rand G. “The Relative Impact of Money and Income McNally, 1965. on Interest Rates: An Empirical Investigation,” 34. Feige, E. L. The Demand for Liquid Staff Economic Studies, no. 26. Washington: Assets: A Temporal Cross Section Analysis. Board of Governors, Federal Reserve System, Englewood Cliffs, N.J.: Prentice Hall, 1963. November 1966. 35. Friedman, Milton. “Interest Rates and the 48. Goldfcld, Stephen M. Commercial Bank Demand for Money,” Journal of Law and Eco­ Behavior and Economic Stability. Amsterdam: nomics, vol. 9 (October 1966), pp. 71-86. North Holland Co., 1966. 36. . “The Demand for Money: Some 49. Gramley, Lyle E., and Chase, Samuel B. Theoretical and Empirical Results,” The Journal Jr. “Time Deposits in Monetary Analysis,” Fed­ of Political Economy, vol. 67 (August 1959), eral Reserve Bulletin, vol. 51 (October 1965), pp. 327-51. " 1380-1406. 37. . “The Lag in Effect of Monetary 50. Grebler, Leo, and Maisel, Sherman J. “De- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

812 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 terminants of Residential Construction: A Review nomic Studies. Washington: Board of Governors, of Present Knowledge,” in Suits, Daniel B., et al. Federal Reserve System, October 1965. Impacts of Monetary Policy. Englewood Cliffs, 64. Jorgenson, Dale W. “Anticipation and In­ N.J.: Prentice Hall, 1963. vestment Behavior,” in Ducsenberry, Fromm, 51. Greenberg, Edward. “A Stock-Adjustment Klein, and Kuh. The Brookings Quarterly Econo­ Investment Model,” Econometrica, vol 32, no. 3 metric Model of the United States. Chicago: Rand (July 1964), pp. 339-57. McNally, 1965, pp. 35-92. 52. Grilicbes, Zvi. “The Brookings Model Vol­ 65. Kaufman, George G. “Current Issues in ume: A Review Article,” The Review of Eco­ Monetary Economics: A Review.” Unpublished nomics and Statistics, vol. 50, no. 2 (May 1968), paper, Federal Reserve Bank of Chicago, March pp. 215-34. 1968. 53. Hamburger, Michael J. “The Demand for 66. . “The Demand for Currency,” Money by Households,” The Journal of Political Staff Economic Studies. Washington: Board of Economy, vol. 74 (December 1966), pp. 600-22. Governors, Federal Reserve System, April 1965. 54. ------. “The Impact of Monetary Vari­ 67. . “Indicators of Monetary Policy: ables: A Selected Survey of the Recent Empirical Theory and Evidence,” National Banking Review, Literature,” Staff Economic Studies, no. 34. Wash­ vol. 4 (June 1967), pp. 481-91. ington: Board of Governors, Federal Reserve 68. Kuzncts, P. W. “Financial Determinants of System, June 1967. Manufacturing Inventory Behavior,” Yale Uni­ 55. . “Interest Rates and Demand for versity, Yale Economic Essays, vol. 4, no. 2 Consumer Durable Goods,” The American Eco­ (1964), pp. 331-69. nomic Review, vol. 57 (December 1967), pp. 69. Laidler, David. “Some Evidence on the 1132-150. ' Demand for Money,” The Journal of Political 56. Hanrahan, George D. “Three Econometric Economy, vol. 74 (February 1966), pp. 55-68. Models of the U.S.” Unpublished Ph.D. disserta­ 70. Liebenberg, M., Hirsch, A. A., and Popkin, tion, University of Minnesota, 1964. J. “A Quarterly Econometric Model of the United 57. Heller, H. R. “The Demand for Money: States: A Progress Report,” Survey of Current The Evidence from the Short-Run Data,” The Business, vol. 46 (May 1966), pp. 13-39. Quarterly Journal of Economics, May 1965, pp. 71. Liu, Ta-Chung. “An Exploratory Quarterly 291-303. ’ ' Econometric Model of Effective Demand in the 58. Hendershott, Patric C. “The Demand for Postwar U.S. Economy,” Econometrica, vol. 31, Money: Speed of Adjustment, Interest Rates, and no. 3 (July 1963), pp. 301-48. Wealth—A Sequel,” Staff Economic Studies. 72. Maisel, Sherman J. “Nonbusincss Construc­ Washington: Board of Governors, Federal Re­ tion,” in Ducsenberry, Fromm, Klein, and Kuh. serve System, October 1965. The Brookings Quarterly Econometric Model of the United States. Chicago: Rand McNally, 1965, 59. . “The Inside Lag in Monetary pp. 179-201. Policy: A Comment,” The Journal of Political 73. McGouldrick, Paul F., and Petersen, John Economy, vol. 74 (October 1966), pp. 519-23. E. “Monetary Restraint and Borrowing and Capi­ 60. ------. “Recent Development of the Fi­ tal Spending by Large State and Local Govern­ nancial Sector of Econometric Models,” The ments in 1966,” Federal Reserve Bulletin, vol. 54 Journal of Finance, vol. 23 (March 1968), pp. (July 1968), pp. 552-81. 41-66. 74. Minsky, Hyman P. “Money and Business 61. Hester, Donald. “Keynes and the Quantity Cycles: Comment,” The Review of Economics Theory: Comment on Friedman and Mciselman and Statistics, vol. 45 (February 1963), pp. 64­ CMC Paper,” The Review of Economics and 72. ’ Statistics, vol. 46 (November 1964), pp. 364-68. 75. Mitchell, George W. “Some Current Prob­ 62. Johnson, Harry G. “Monetary Theory and lems of Monetary Policy.” Remarks at the Joint Policy,” The American Economic Review, vol. 52, Luncheon Meeting of the Southern Economic no. 3 (June 1962), pp. 335-84. Association and the Southern Finance Association, 63. Jones, David M. “The Demand for Money: Atlanta, Georgia, November 11, 1966. A Review of Empirical Literature,” Staff Eco­ 76. Modigliani, Franco. “The Monetary Meeh- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONETARY POLICY AND THE ECONOMY 813 anism and Its Interaction with Real Phenomena,” able Weight Distributed Lags,” Journal of the The Review of Economics and Statistics, vol. 45 American Statistical Association, vol. 62 (Decem­ (February 1963), pp. 79-106. ber 1967), pp. 1277-89. 77. Morris, Frank E. “Impacts of Monetary 90. Tobin, James. “Commercial Banks as Cre­ Policy on State and Local Governments: An Em­ ators of Money,” in Banking and Monetary Studies, pirical Study,” The Journal of Finance, vol. 15 Carson, Deane (ed.). Homewood, Illinois: Richard (May 1960), pp. 232-49. D. Irwin, Inc., 1963, pp. 408-19. 78. Muth, Richard F. “The Demand for Non­ 91. . “An Essay on Principles of Debt Farm Housing,” in The Demand for Durable Management,” in Fiscal and Debt Management Goods, Harberger, A.C. (ed.) Chicago: The Uni­ Policies. Prepared for the Commission on Money versity of Chicago Press, 1960, pp. 29-96. and Credit. Englewood Cliffs, N.J.: Prentice Hall, 79. Okun, Arthur M. “Money and Business 1963, pp. 143-218. Cycles: Comment,” The Review of Economics 92. . “The Monetary Interpretation of and Statistics, vol. 45 (February 1963), pp. History,” The American Economic Review, vol. 12-11. ' 55 (June 1965), pp. 464-85. 80. Patinkin, Don. “Price Flexibility and Full 93. Willes, Mark H. “The Inside Lags of Mon­ Employment,” in Committee of the American etary Policy,” The Journal of Finance, vol. 22 Economic Association. Readings in Monetary (December 1967), pp. 591-93. Theory. New York: Blanheston Co., 1951, pp. 94. . “Lags in Monetary and Fiscal 252-83. Policy,” Business Review, Federal Reserve Bank 81. Rasche, Robert H., and Shapiro, Harold T. of Philadelphia, March 1968, pp. 3-10. “The F.R.B.-MIT Econometric Model: Its Spe­ 95. Wood, John W. “A Model of Federal Re­ cial Features,” The American Economic Review, serve Behavior,” Staff Economic Studies, no. 17. vol. 57 (May 1968), pp. 123-49. Washington: Board of Governors, Federal Re­ 82. Ritter, Lawrence S. “The Role of Money in serve System, August 1965. Keynesian Theory,” in Banking and Monetary Studies, Carson, Deane (ed.). Homewood, Illi­ Other papers produced by nois: Richard D. Irwin, Inc., 1963, pp. 134-50. the ad hoc working group 83. Scott, Robert H. “Estimates of Hicksian on monetary linkages IS and LM Curves for the United States,” The Journal of Finance, vol. 21 (September 1966), 96. Andersen, Leonall C. “Money Market Con­ pp. 479-87. ditions as a Guide for Monetary Management.” 84. Selby, Edward B. Jr. “The Inside Lag of Paper presented at the UCLA Conference on Monetary Policy, 1953-58,” The Quarterly Re­ Guides and Targets of Monetary Policy, April 28, view of Economics and Business, vol. 8 (Spring 1966. Published in Targets and Indicators of 1968), pp. 39-52. Monetary Policy, Karl Brunner (ed.). California: 85. Shapiro, Harold T. “Consumer Expendi­ Chandler Publishing Company, 1968. tures in the Fed-MIT Model.” Paper prepared 97. . “Federal Reserve Defensive Oper­ for the Subcommittee on Monetary Research, ations and Short-Run Control of the Money Social Science Research Council, Washington, Stock.” Published in The Journal of Political May 1967. Economy, April 1968. 86. Suits, Daniel B., et al. Impacts of Mone­ 98. Butler, Lawrence. “The Inventory and tary Policy. Englewood Cliffs, N.J.: Prentice Hall, Asset Demands for Money: Some Empirical Re­ 1963. sults.” Presented at meeting of System Committee 87. Teigen, Ronald L. “Demand and Supply on Financial Analysis, October 1967. Function for Money in the United States: Some 99. Duprey, James. “Some Evidence on the Structural Estimates,” Econometrica, vol. 32, no. Variability of Demand Deposits.” Presented at 4 (October 1964), pp. 476-509. meeting of System Committee on Financial Anal­ 88. . “A Structural Approach to the Im­ ysis, January 1968. pact of Monetary Policy,” The Journal of Fi­ 100. Hamburger, Michael J. “The Term Strucnance, vol. 19 (May 1964), pp. 285-312. tuic of Interest Rates: Some Additional Evi­ 89. Tinsley, Peter A. “An Application of Vari­ dence,” in conjunction with Cynthia M. Latta. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

814 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 Presented at meeting of System Committee on of working group on monetary linkages, January Financial Analysis, April 1967. Published in 1968. To be published in The American Economic Journal of Money, Credit and Banking. Review, 1969. 101. . “An Empirical Study of Interest 103. Kaufman, George G., and Gibson, Wil­ Rate Determination,” jointly with William L. liam E. “The Relative Impact of Money and In­ Silber. Presented at meeting of System Committee come on Interest Rates.” Presented at meeting of on Financial Analysis, May 1968. Presented in System Committee on Financial Analysis, October September 1968 to the Econometric Society in 1966. Published in Staff Economic Studies, Board Amsterdam, Netherlands. of Governors of the Federal Reserve System, 102. Kaufman, George G. “More on An Em­ February 1967, and in The Journal of Political pirical Definition of Money.” Presented at meeting Economy, June 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Business Financing by Business Finance Companies In a period when banks and other lenders medium-sized businesses have not been con­ have been actively seeking new markets, sidered good credit risks by other lenders. those finance companies that focus mainly In addition, many of the other financial on business financing have been more suc­ institutions are reluctant to assume the high­ cessful in maintaining their relative market ly technical and administratively expensive position than have the other two major types supervision that is required for much of the of finance companies—the sales finance and financing done by business finance com­ the personal finance. The sales finance com­ panies. In recent years, however, some com­ panies lost much of their dominance in the mercial banks have entered this market auto financing field, although they have suc­ through acquisition of established business cessfully built up other parts of their con­ finance companies. In this way, the banks sumer financing business and have shown an have gained experienced staffs as well as increased interest in business financing. And customers and have been able to set this personal finance companies have en­ kind of financing apart from their more countered difficulty in retaining their histori­ usual bankirig operations. cal share of the personal loan market in the face of heightened competition from com­ THE NATURE OF BUSINESS FINANCING mercial banks and credit unions. AMONG FINANCE COMPANIES 1 The term “business finance company” has Business financing done by finance com­ come to be applied to a specialized company panies can be divided into several types: whose main function is to supply credit to financing of the purchase of commercial, in­ small and medium-sized businesses. For a dustrial, and farm equipment; financing of variety of reasons, other lenders have felt commercial accounts receivable; factoring; some restraints in penetrating this credit financing of the purchase of commercial market. Some financial institutions, such as vehicles and dealers’ inventories of passen­ mutual savings banks and savings and loan ger vehicles; financing of leased equipment associations, are subject to legal limitations and vehicles; rediscounting for other finance in dealing with the financing needs of small companies; and accommodation and other businesses. Moreover, many small and financing. The amounts of various business Note.—This article was prepared by Evelyn M. receivables held by all finance companies Hurley, economist in charge of the 1965 survey of are shown in Table 1. finance companies, in consultation with Francis R. Pawley, consultant for the survey. This is the second in a series of articles analyzing 1 This article deals only with that part of business data obtained from the 1965 survey of finance com­ financing done through finance companies in general panies. The first article entitled “Survey of Finance and business finance companies in particular. It thus Companies, Mid-1965”, appeared in the April 1967 excludes several important elements in the total busi­ Federal Reserve Bulletin. For a description of the ness financing picture—commercial bank loans and three major types of finance companies discussed in loans from other financial institutions both public and this series, see p. 541 of the article in the April 1967 private, open-rharket paper, security issues, internal Bulletin. Company reports are on a consolidated funds, and the holdings of the listed types of receiv­ basis. ables by other holders. 815 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

816 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 TABLE 1. BUSINESS RECEIVABLES OF FINANCE involve instalment sales of durable goods, COMPANIES, JUNE 30, 1965 this type of financing is more similar to con­ Amount, in sumer instalment sales financing than to millions of Percentage Type of receivable dollars distribution other types of business financing. However, commercial, industrial, and farm machinery Wholesale loans ...................................... 4,242 35,4 Automobiles........................................ 2^897 24,2 often is specially designed and, therefore, Other consumer goods........................ '318 2.7 Other, inch inventory loans................ 1,026 8.6 more difficult to evaluate for resale purposes Retail loans.............................................. 4,034 33.7 than consumer goods. Such machinery is Commercial vehicles............................ 1,614 13.5 Business, industrial, and farm equipment........................................ 2,419 20.2 also more difficult and costly to repossess Lease paper.............................................. 843 7.0 and resell. Therefore, the creditworthiness Business equipment and motor vehicles.............................................. 818 6.8 of the seller, against whom the finance com­ Other.................................................... 25 0.2 pany usually has recourse, and the on-site Other business credit^........................... . 2,867 23.9 Commercial accounts receivable 2.... 1 ,036 8.7 resale value of the equipment arc important Factored accounts receivable 3,...... 608 5.1 Advances to factored clients............... 200 1.7 factors in determining the extent of equip­ Rediscounted receivables 2................. 305 2.5 Other 4.................................................. 717 6.0 ment financing. Total business receivables........... 11,986 100.0 In the 1965 survey of finance companies, retail financing of equipment accounted for For notes see p. 827. one-fifth of all business loans outstanding at Equipment financing. Equipment financ­ finance companies as of June 30. The ing covers the purchase of retail instalment amount of wholesale equipment financing sales contracts arising in business purchases was not separately determined in that of commercial, industrial, and farm equip­ survey. ment other than commercial vehicles; and Accounts receivable financing. Nine per also the financing of dealers’ inventories of cent of all business loans outstanding in the such equipment (so-called wholesale 1965 survey were loans using commercial paper). accounts receivable as security (Table 1). Companies engaged in providing equip­ Companies engaged in providing such ment financing usually purchase the instal­ financing take the commercial accounts re­ ment contracts from the distributor or man­ ceivable of firms as collateral for the loans ufacturer who sells the equipment; however, they extend to these firms. The borrower they sometimes extend credit directly to assigns to the finance company the accounts users of the equipment. receivable due to him from his customers. In general, equipment financing involves Loans are made by the finance company to heavy construction equipment, machine the borrower simultaneously with each as­ tools, laundry and dry-cleaning equipment, signment of accounts. These accounts can be dairy equipment, banking equipment, dental collected either by the borrower or by the and surgical equipment, printing equipment, finance company, depending upon the terms woodworking machinery, textile machines, of agreement between the two. If the bor­ and vending machines. While such credit rower collects from his customers, the pay­ contracts seldom approach the life of the ments are turned over directly to the finance equipment, maturities on this type of finan­ company and applied to the reduction of the cing are relatively long. borrower’s debt. Any excess is returned by Because equipment financing contracts do the finance company to the borrower. The have lengthy maturities and the transactions borrower is responsible at all times for the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BUSINESS FINANCE COMPANIES 817 full amount of his own loan. If the assigned Factoring differs from financing of com­ accounts are not sufficient to cover this, the mercial accounts receivable in two main re­ borrower is liable for the difference. spects. The factor purchases the accounts If the finance company collects the outright without recourse, whereas in the accounts, it notifies the customers that their financing of accounts receivable, companies accounts have been assigned and requests lend money to the borrower and take com­ them to make payments directly to the mercial accounts receivable as collateral. In finance company. But when the borrower accounts receivable financing the originating collects the accounts, no notice of assign­ firm obtains its money immediately; in fac­ ment is given to the customers. This non­ toring the firm ordinarily receives its money notification method is usually more popular only as the accounts mature. However, on because the relationship between the bor­ occasion, factors make cash advances to rower and his customer is not disturbed and their clients, usually to provide additional the financing arrangements remain confiden­ working capital to tide them over periods of tial. seasonal slackness. These funds are called Factoring. Another important method of advances to factored clients in the accom­ handling the receivables generated in the panying tables. course of business operations is through fac­ Businesses resorting to factoring are usu­ toring. In this, the factor purchases—on a ally small or medium-sized firms that need deferred payment basis—the open accounts some sort of credit protection and are will­ of manufacturers, wholesalers, and jobbers.2 ing to pay an added charge for this service. The factor assumes the risk of all credit Such firms also frequently need the addi­ losses. The factor, rather than his client, is tional working capital that factors occasion­ responsible for credit investigations, ac­ ally advance to tide them over periods of counts receivable bookkeeping, and collec­ seasonal slackness. Industries that tradition­ tions. In a typical factoring transaction, the ally use factoring include the textile, toy, client’s customers are notified to make pay­ shoe, furniture, and appliance trades. ment directly to the factor. The factor, in Factored accounts do not involve net turn, agrees to pay the client on the date extensions of credit to the client (except that the accounts are due.2 The factor thus to the extent of small differences in timing provides the client firm credit protection by of the payment of the receivables and the guaranteeing full payment of his outstanding payments to the client). The total amounts accounts receivable. of debt outstanding generated are not large. Net balances on factored accounts plus 2 An open account receivable is a liability for serv­ loans or advances to factored clients made ices or merchandise furnished that is not accompanied up 7 per cent of business loans held by all by any formal written acknowledgment of indebted­ ness on the part of the purchaser. An open account finance companies as of June 30, 1965 receivable is distinguished from a trade acceptance or (Table 1). promissory note by this lack of formal written ac­ knowledgment. Financing of commercial vehicles. The 3 The purchase price is usually equal to the net financing of the retail purchase of commer­ amount of the accounts receivable purchased by the cial motor vehicles by business users, which factor less the factoring charge. The factoring charge varies depending on the terms upon which the client in 1965 accounted for about one-seventh of sells to his customers and the volume of business he total business financing by finance com­ does. If the client's credit terms are short and his vol­ panies, consists of the purchase of instalume large, he is usually charged a lower rate. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

818 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 ment sales contracts for such commercial combinations of such securities as chattels, vehicles as trucks, buses, and taxicabs as real estate, accounts receivable, and inven­ well as “on the road” roadbuilding and con­ tories—for the purpose of financing the pur­ struction equipment.4 chase of materials or taking advantage of Wholesale vehicle financing, which covers special opportunities for expansion. the financing of dealers’ inventories of both commercial vehicles and passenger cars, is DISTRIBUTION OF BUSINESS FINANCING the largest category of business financing AMONG FINANCE COMPANIES done by the finance companies and accounts As shown in Tables 2 and 3, the three major for almost one-quarter of all such financing. types of finance companies all do some busi­ Other financing. Lease financing arises ness financing, either through business in connection with the financing of the pur­ finance company subsidiaries or directly chase or holding of equipment that is leased through specialized divisions. In fact, sales rather than sold to the business or consumer finance companies held a larger amount of user of the equipment. The credit is ex­ business loan paper on June 30, 1965, than tended to the lessor who may be the manu­ did business finance companies. However, facturer, a dealer, or a company formed for financing of business receivables amounted the specific purpose of leasing equipment. to more than 96 per cent of total receivables A wide variety of types of goods are covered in the case of business finance companies, by such lease paper—passenger cars and less than 33 per cent for the sales finance commercial vehicles; business, industrial, companies, and only 6 per cent for the per­ and farm equipment; mobile homes, air­ sonal finance companies (Table 2). planes, and boats as well as such other con­ The three types of finance companies sumer goods as television sets. Lease paper tend to emphasize different types of busi­ accounted for 7 per cent of all business ness financing. The sales finance companies loans outstanding at finance companies at had 40 per cent of their business receivables the 1965 survey date. in wholesale automobile paper. The business The finance companies also do relatively finance companies, on the other hand, had small amounts of other kinds of business only 3 per cent of their business receivables financing—seasonal lending secured by in­ in this category but showed heaviest con­ ventory as an accommodation to their cus­ centration in retail paper on equipment and tomers (although generally they will insist commercial vehicles. The personal loan that a client exhaust his borrowing capacity companies had still another pattern of busi­ on commercial accounts receivable before ness receivables, concentrating on commer­ using inventory as collateral); export credits cial accounts receivable, rediscounted re­ on a secured basis (either against letters of ceivables, and “other” (Table 3). credit or sight drafts and retaining control over the goods until the loan is repaid); MAJOR TYPES OF BUSINESS FINANCE COMPANIES import financing in the form of letters of credit established in favor of the foreign sup­ Business finance companies do not consti­ plier; “package” loans—using as collateral tute a homogeneous group. They differ in size, in degree and direction of specializa­ ‘ “On the road” vehicles are those pieces of con­ tion, and in the structure of their portfolios. struction equipment that require licenses to be operated Except for a few large diversified firms. on a public road. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BUSINESS FINANCE COMPANIES 819 TABLE 2. RECEIVABLES OF FINANCE COMPANIES, JUNE 30, 1965 Amount, Percentage distribution in millions of dollars Type of receivable Sales Business Personal Sales Business Personal Consumer receivables........................................................... 13,918 140 8 297 66.8 2 9 91 6 Sales receivables................................................................ 12 254 110 1 *296 58.8 2 3 14 6 Retail passenger car paper............................................ 8,313 7 *502 39.9 o i 5 7 Other retail consumer goods paper........................... • 3,708 103 768 17.8 2.1 8 7 Mobile homes and ’'campers".................................. 980 12 128 4.7 0 3 1 4 Airplanes, boats, etc................................................. 44 12 5 0.2 0 3 0 I All other.............................................................. 2,684 79 635 12.9 1.6 7 2 Home repair and modernization loans ........................ 233 26 1.1 0.3 Personal cash loans........................................................... 1,664 30 7,001 8.0 0.6 79.0 Business receivables............................................................... 6,818 4,624 544 32.7 96.4 6.1 Wholesale paper................................................................ 3,200 954 88 15.4 19.9 1.0 Automobiles................................................................... 2,712 142 43 13.0 3.0 0.5 Other consumer goods................................................. ’258 41 19 1.2 0.9 0.2 Other, including inventory loans.................................. 230 770 26 1.1 16.0 0.3 Retail paper....................................................................... 2,221 1,778 35 10.7 37. i 0.4 Commercial vehicles...................................................... 757 '838 19 3.6 17.5 0.2 Business, industrial, and farm equipment................... 1,464 939 16 7.0 19.6 0.2 Lease paper........................................................................ 485 341 17 2.3 7.1 0.2 Business equipment and motor vehicles....................... 477 330 11 2.3 6.9 0.1 Other............................................................................... 8 11 6 0.2 0.1 Other business credit1....................................................... 912 1,551 404 4.4 32.3 4.6 Loans on commercial accounts receivable^............... 278 '624 134 1.3 13.0 1.5 Factored accounts receivable3...................................... 276 324 8 1.3 6.8 0.1 Advances to factored clients . . ............................. 112 88 0.5 1.8 Rediscounted receivables2............................................ 41 158 106 0.2 3.3 1.2 Other 4............................................................................. 205 357 155 1.0 7.4 1.7 Other receivables................................................................... 129 36 29 0.6 0.8 0.3 Total receivables—Gross.......................................... 20,865 4,799 8,870 100.0 100.0 100.0 For notes see p. 827. TABLE 3. BUSINESS RECEIVABLES OF FINANCE COMPANIES, JUNE 30, 1965 Percentage distribution Amount, in millions of dollars Type of receivable Withintype-of-company Within type-of-receivables grouping grouping^ Sales Business Personal Sales Business Personal Sales Business Personal Wholesale loans................................................ 3,200 954 88 47 21 16 76 22 2 Automobiles.................................................. 2,712 142 43 40 3 8 94 5 1 Other consumer goods.................................. 258 41 19 4 1 3 81 13 6 Other, incl. inventory loans......................... 230 770 26 3 17 5 22 75 2 Retail loans........................................................ 2,221 1,778 35 33 38 6 55 44 1 Commercial vehicles..................................... 757 838 19 11 18 3 47 52 1 Business, industrial, and farm equipment... 1,464 939 16 22 20 3 61 39 I Lease paper........................................................ 485 341 17 7 7 3 58 40 2 Business equipment and motor vehicles.. . . 477 330 11 7 7 2 58 40 1 Other.............................................................. 8 11 6 * ♦ 1 32 44 24 Other business credit *.................................... 912 1,551 404 13 34 74 32 54 14 Commercial accounts receivable 2............... 278 624 134 4 14 25 27 60 13 Factored accounts receivable 3.................... 276 324 8 4 7 1 46 53 1 Advances to factored clients......................... 112 88 2 2 56 44 Rediscounted receivables 2........................... 41 158 106 1 3 19 13 52 35 Other 4........................................................... 205 357 155 3 8 28 29 50 22 Total business receivables..................... 6,818 4,624 544 100 100 100 57 39 4 For notes see p. 827. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

820 FEDERAL RESERVE BULLETIN a OCTOBER 1968 business finance companies tend to concen­ The majority of business finance com­ trate on one specific type of lending: for panies tend to be small in terms of receiv­ example, financing of equipment, accounts ables outstanding. Of the 571 business receivable, or factoring. finance companies reporting in the 1965 TABLE 4. BUSINESS RECEIVABLES OF BUSINESS FINANCE COMPANIES, JUNE 30, 1965 Size of company (business receivables, in thousands of dollars) Type of receivable Total 100,000 25,000­ 5,000­ 2,500­ 1,000­ 500­ 250­ 1 GO- Under and over 99,999 24,999 4,999 2,499 999 499 249 100 In millions of dollars Total.................................................... 4,624 2,897 842 603 8! 81 40 57 16 6 Wholesale paper............................. 954 765 94 75 11 5 3 I Automobiles................................ 142 140 1 1 Other consumer goods............... 41 1 2 23 10 4 Other, including inventory loans 770 623 92 52 1 1 Retail paper.................................... 1,778 1,279 221 211 24 18 3 16 4 2 Commercial vehicles................... 838 797 11 13 6 5 5 Business, industrial, and farm equipment. 939 482 210 197 18 13 3 11 3 2 Lease paper.................................... 341 64 111 154 2 9 1 Busmess equipment and motor vehicles... 330 60 107 152 2 8 1 uuicr............................................ 11 4 2 1 Other business credit 1................... 1,551 790 416 163 44 49 37 4i 9 2 Loans on commercial accounts receivable 2........................................ 624 352 126 42 32 28 26 15 3 Factored accounts receivable 3.. 324 110 165 31 9 6 2 I Advances to factored clients... ■ 88 33 48 7 * Rediscounted receivables 2......... 158 87 35 30 5 1 Other 4........................................ 357 208 42 53 12 12 6 20 3 1 Number of companies....................................... 571 12 18 40 25 55 63 139 86 133 Percentage distribution, within type-of-receivables grouping Total...................................................... 100.0 62.7 18.2 13.0 1.8 1.8 0.9 1.2 0.3 0.1 Wholesale paper............................... 100.0 80.2 9.9 7.9 1.2 0.5 0.3 0.1 Automobiles.................................. too.o 98.6 0.7 0.7 Other consumer goods................. 100.0 2.4 4.9 56.1 24.4 9.8 2.4 Other, including inventory loans . 100.0 80.9 11 .9 6.8 o.l 0.1 0.1 Retail paper...................................... 100.0 72.0 12.4 1 1 .9 1.4 1.0 0.2 0.9 0.2 0. 1 Commercial vehicles..................... 100.0 95.1 1 .3 1 .6 0.7 0.6 0.6 0.1 Business, industrial, and farm equipment.. 100.0 51.3 22,4 21 .0 1.9 1.4 0.3 1.2 0.3 0.2 Lease paper...................................... 100.0 18.8 32.6 45.2 0.6 2.6 0.3 Business equipment and motor vehicles. . . 100.0 18.2 32.4 46.1 0.6 2.4 0. 3 Other.............................................. 100.0 36.4 36.4 18.2 9,1 Other business credit 1..................... 100.0 50.9 26.8 10.5 2,8 3.2 2.4 2.6 0.6 0.1 Loans on commercial accounts receivable 2.......................................... 100.0 56,4 20.2 6.7 5.1 4.5 4.2 2.4 0.5 Factored accounts receivable 3.. . 100.0 34.0 50.9 9.6 2.8 1 .9 0.6 0.3 Advances to factored clients........ 100.0 37.5 54.5 8.0 ♦ Rediscounted receivables 2.......... 100.0 55.1 22,2 19.0 3.2 0.6 Other 4.......................................... 100.0 58.3 11.8 14.8 3.4 3.4 1.7 5.6 0.8 0.3 Number of companies....................................... 100.0 2.1 3.2 7.0 4.4 9.6 11 .0 24.3 15.1 23.3 Percentage distribution, within size-of-company grouping Total................................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Wholesale paper............................................ 20.6 26.4 11.2 12.4 13.6 6.2 18.8 16 7 Automobiles................................................ 3.1 4.8 ♦ 6.3 16 7 Other consumer goods............................... 0.9 0.2 3.8 12.3 4.9 6.3 .... Other, including inventory loans.............. 16.7 21.5 10.9 8.6 1.2 1.2 6.3 Retail paper.................................................... 38.5 44.1 26.2 35.0 29.6 22.2 7.5 28.1 25.0 33 3 Commercial vehicles................................. 18.1 27.5 1.3 2.2 7.4 6.2 8.8 6.3 Business, industrial, and farm equipment. 20.3 16.6 24.9 32.7 22.2 16.0 7.5 19.3 18.8 33 3 Lease paper................................................... 7.4 2.2 13.2 25.5 2.5 11.1 16 7 Business equipment and motor vehicles. .. 7. 1 2. 1 12.7 25.2 2.5 9.9 16 7 Other........................................................... 0.2 0.1 0.5 0.3 1.2 Other business credit 1............................... .. 33.5 27.3 49.4 27.0 54.3 60.5 92.5 71.9 56.3 33 3 Loans on commercial accounts receiv­ able 2................................................... 13.5 12.2 15.0 7.0 39.5 34.6 65.0 26.3 18.8 • F A a d c v t a o n r c e e d s a t c o c o fa u c n t t o s r e re d c e c i l v ie a n b t l s e . . 3 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 . . 0 9 3 1 . . 8 1 1 5 9 . . 7 6 5 1 . . 1 2 * 11.1 ♦ ..............10. 5 12.5 16.7 Rediscounted receivables 2........................ 3.4 3.0 4.2 5.0 12.5 6.3 Other 4........................................................ 7.7 7.2 5.0 8.8 14.8 14.8 15.0 35.1 18.8 16.7 For notes see page 827. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BUSINESS FINANCE COMPANIES 821 survey of finance companies, only 70 re­ cent of their business receivables in other ported business receivables of over $5 mil­ types of assets. They not only are active in lion; more than 60 per cent of the com­ financing of commercial accounts receivable panies had less than $500,000 in business but also engage in factoring and purchasing receivables (Table 4). of instalment sales contracts as an accom­ The bulk of the business receivables— modation to their clients. In 1965, factoring over three-fifths—were, however, held by and equipment financing each accounted for the 12 companies over $100 million in size. 1 3 per cent of the business receivables of Almost 95 per cent of the receivables were commercial finance companies (Table 5). held by the 12 per cent of companies that Package loans are also an important part were over $5 million in size. (20 per cent) of their receivables. Holdings of the largest companies are Commercial finance companies also, as quite diversified. In distribution of types of an accommodation to their customers, occa­ receivables, portfolios are similar to those sionally allow additional financing through of business finance companies as a group, loans secured by inventory—although insist­ but they are somewhat more heavily ing that a customer exhaust his borrowing weighted in wholesale equipment paper and capacity on accounts receivable before using inventory Ioans and retail commercial ve­ inventories as collateral. Because these com­ hicle paper (Table 4). The other size classes panies obtain most of their funds from short­ reflect varying degrees of specialization, and term borrowing, they are usually reluctant their portfolios differ markedly from the to have any significant part of their port­ pattern for all business finance companies. folios in relatively less liquid inventory loans. Equipment financing specialists. Those Factoring specialists. These specialists companies specializing in equipment finan­ are business finance companies that hold the cing held 76 per cent of all the retail paper largest proportion of their receivables in fac­ on commercial, industrial, and farm equip­ tored accounts receivable and advances to ment held by business finance companies. factored clients. Such companies are the least They also held 82 per cent of the wholesale diversified of the business finance com­ equipment paper (other, including inven­ panies; 85 per cent of their business receiv­ tory) and 13 per cent of the lease paper. ables fell into these two categories in the Wholesale and retail equipment paper ac­ 1965 survey. These companies also held counted for 77 per cent of all the business small amounts of loans on accounts receiv­ loans held by these specialists, while lease able and did some accommodation financ­ paper on such equipment made up another ing. Factoring specialists held only a little 2 per cent of their receivables (Table 5). more than half of the factored accounts re­ Commercial finance companies. Commer­ ceivable of business finance companies re­ cial finance companies have the largest pro­ ported in the survey. (See Table 5.) Com­ portion of their receivables in loans on com­ mercial finance companies accounted for mercial accounts receivable. Despite this most of the remainder. concentration, these companies tend to be Other business finance companies. The relatively diversified. Although they ac­ remaining business finance companies tend counted for 90 per cent of all the loans on to fall into three categories: (1) those spe­ commercial accounts receivable reported in cializing in wholesale and retail financing of the 1965 survey, they had more than 60 per commercial vehicles such as trucks, buses, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

822 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 and taxicabs; (2) those financing lease ing in other business financing” in the tables. paper; and (3) those purchasing redis­ Commercial vehicle specialists, in ad­ counted receivables. These companies have dition, finance small amounts of equip­ been grouped under “companies specializ- ment as well as some lease paper. They hold TABLE 5. BUSINESS RECEIVABLES OF BUSINESS FINANCE COMPANIES, JUNE 30, 1965 Companies specializing in: All business Type of receivable finance Business, industrial, companies and farm equipment Commercial accounts Factoring Other business financing receivable financing financing In millions of dollars Total ■ ........................................................................ 4,624 1,743 1,431 259 1,192 Wholesale paper.................................................. 954 731 63 161 Automobiles.................................................... 143 68 9 66 Other consumer goods................................... 41 30 8 3 Other, including inventory loans................... 770 633 45 91 Retail paper......................................................... 1,778 884 201 694 Commercial vehicles........................................ 838 172 23 643 Business, industrial, and farm equipment.... 939 710 179 51 T .ease paper....................................................... 341 45 44 1 251 Business equipment and motor vehicles........ 330 42 39 1 248 Other................................................................ 11 3 6 2 Other business credit 1,.,................................... 1,551 84 1,124 258 85 Commercial accounts receivable 2,............... 624 26 559 29 8 Factored accounts receivable 3....................... 324 5 147 170 1 Advahcesto factored clients. 88 37 50 Rediscounted receivables 2........................... 158 4 100 54 Other ^............................................................ 357 48 280 9 21 Number of companies............................................. 571 187 255 56 73 Percentage distribution, within type-oLreceivables grouping Total....................................................................... 100.0 37.7 30.9 5.6 25.8 Wholesale paper.................................................. 100.0 76.6 6.6 16.9 Automobiles.................................................... 100.0 47.6 6.3 46.2 Other consumer goods.................................... 100.0 73.2 19.5 7.3 Other including inventory loans................... 100.0 82.2 5.8 11.8 Retail paper......................................................... 100.0 49.7 11.3 39.0 Commercial vehicles........................................ 100.0 20.5 2.7 76.7 Business, industrial, and farm equipment... • 100.0 75.6 19.1 5.4 Lease paper......................................................... 100.0 13.2 12.9 0.3 73.6 Business equipment and motor vehicles........ 100.0 12.7 11.8 0.3 75.2 Other....................................................... 100.0 27.3 54.5 18.2 Other business credit 1........................................ 100.0 5.4 72.5 16.6 5.5 Commercial accounts receivable 2................. 100.0 4.2 89.6 4.6 1.3 Factored accounts receivable 3....................... 100.0 1.5 45.4 52.5 0.3 Advances to factored clients.......................... 100.0 1.1 42.0 56.8 Rediscounted receivables 2............................. 100.0 2.5 63.2 34.4 Other 4............................................................. 100.0 13.4 78.4 2.5 5.9 percentage distribution, within type-of-company grouping Total....................................................................... 100.0 100.0 100.0 100.0 100.0 Wholesale paper............................................... 20.6 41.9 4.4 13.5 Automobiles . . ................................................. 3.1 3.9 0.7 5.5 Other consumer goods................................... 0.9 1.7 0.6 0.3 Other, including inventory loans.......... 16.7 36.3 3.1 7.6 Retail paper......................................................... 38.4 50.7 14.0 58.2 Commercial vehicles........................................ 18.1 9.9 1.6 53.9 Business, industrial, and farm equipment.... 20.3 40.7 12.5 4.3 Lease paper........................................................ 7.4 2.6 3.1 0.4 21.1 Business equipment and motor vehicles........ 7.1 2.4 2.7 0.4 20.8 Other.............................................................. . 0.2 0.2 0.4 0.2 Other business credit 1........................................ 33.5 4.8 78.5 99.6 7.1 Commercial accounts receivable 2................. 13.5 1.5 39.0 11.2 0.7 Factored accounts receivable 3....................... 7.0 0.3 10.3 65.6 0. 1 Advances to factored clients.......................... 1.9 0.1 2.6 19.3 Rediscounted receivables 2 ............................. 3.4 0.2 7.0 4.5 Other 4.............................................................. 7.7 2.8 19.6 3.5 1.8 For notes see p, 827. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BUSINESS FINANCE COMPANIES 823 TABLE 6. BUSINESS RECEIVABLES OF OTHER larly at short-term (Tables 7 and 8). For BUSINESS FINANCE COMPANIES, JUNE 30, 1965 finance companies in general, sources of fi­ (In millions of dollars) nancing vary with the terms and relative risk of the loans in the portfolio, variability in Companies specializing in Total financing of: volume of loans, the size of company, and other Type of business receivable finance Com­ Redis­ the availability and cost of the various kinds companies mercial Leases counts vehicles of financing. In the case of the business fi­ nance companies, the rather large amount of Total.................................. 1,192 863 262 67 Wholesale paper........... 161 151 10 short-term borrowings reflects both the high Automobiles............. 66 66 * Other consumer proportion of short-term loans in their port­ goods.................. 3 2 1 Other, including in­ folios and the short-term fluctuations—such ventory loans..... 91 82 9 Retail paper................... 694 681 7 6 Commercial vehicles.. 643 642 1 as seasonal—that occur in this type of lend­ Business, industrial, and farm equip­ ing. ment.................... 51 39 6 6 Lease paper................... 251 14 237 Business finance companies tap two major Business equipment and motor vehicles 248 14 234 sources of short-term funds—bank loans Other......................... 3 3 Other business credit '.. 85 is 7 60 and commercial paper. As of June 30, 1965, Loans on commercial accounts receiv­ nearly three-tenths of all business finance able 2.................. 8 5 2 1 Factored accounts re­ ceivable 3................ 1 * 1 company funds were obtained from short­ Advances to factored clients................. * ♦ * term bank loans and nearly two-tenths from Rediscounted receiv­ ables 2................ 54 2 1 51 commercial paper placed in the open market Other 4....................... 21 10 3 8 (an undetermined part of which is also held Number of companies... . 73 26 31 16 by banks). (See Tables 7 and 8.) The selec­ For notes see p. 827. tion of bank loans as opposed to other short­ term instruments depends upon relative trivial amounts of loans on commercial ac­ availability and cost. During periods of counts receivable and appear to do some monetary restraint, when bank funds are less accommodation financing for their clients. plentiful and more expensive, some large Lease financing companies are quite spe­ companies turn more to the commercial cialized. They do not hold significant paper market. amounts of any other type of paper, al­ Only large, well-known firms, however, though they do hold some paper in virtually can sell unsecured promissory notes (either every category of business credit (Table 6). directly or through dealers) on the open Companies specializing in rediscounts are market. This size factor is probably the ma­ few in number compared to the number of jor explanation for the fact that business fi­ companies in other categories of business nance companies made relatively less use of financing. The extent of their concentration commercial paper in 1965 than did sales in this area is indicated by the fact that re­ finance companies, which have a higher con­ discounted paper accounted for 76 per cent centration of large companies. of all their business financing in 1965. Personal finance companies, and sales fi­ nance companies to a smaller extent, showed SOURCES OF FUNDS FOR BUSINESS higher long-term debt ratios than did busi­ FINANCE COMPANIES ness finance companies in the 1965 survey Business finance companies acquire their (Table 9). This appears to have been re­ funds mainly through borrowing, particu­ lated in part to the differing lengths of ma- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

824 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 TABLE 7. ASSETS AND LIABILITIES OF BUSINESS FINANCE COMPANIES, JUNE 30, 1965 (In millions of dollars) Companies specializing in: Balance sheet item All business Business, industrial, finance and farm equipment Commercial accounts Other business companies financing receivable financing Factoring financing Assets Consumer receivables............................................. 140 89 48 ♦ 2 Sales receivables.................................................. 110 88 20 2 Retail passenger car paper............................. 7 1 5 Other retail consumer goods paper............... 103 87 15 1 Mobile homes and “campers”................... 12 2 9 • Airplanes, boats, etc.................................... 12 12 * All other....................................................... 79 73 4 1 Home repair and modernization loans.......... Personal cash loans............................................. 30 1 30 * • Business receivables................................................ 4,624 1,743 1,431 259 1,192 Wholesale paper.................................................. 954 731 63 161 Automobiles.................................................... 142 68 9 66 Other consumer goods.................................... 41 30 8 3 Other, including inventory loans................... 770 633 45 91 Retail paper......................................................... 1,778 884 201 694 Commercial vehicles........................................ 838 172 23 643 Business, industrial and farm equipment. . . . 939 710 179 51 Lease paper.......................................................... 341 45 44 i 251 Business equipment and motor vehicles........ 330 42 39 i 248 Other............................................................... 11 3 6 2 Other business credit 1........................................ 1,551 84 1,124 258 85 Loans on commercial accounts receivable 2,. 624 26 559 29 8 Factored accounts receivable 3....................... 324 5 147 170 I Advances to factored clients........................... 88 1 37 50 Rediscounted receivables 2............................. 158 4 100 54 Other 4.............................................................. 357 48 280 9 21 Other receivables..................................................... 36 7 6 1 22 Total receivables—Gross......................................... 4,799 1,835 1,487 261 1,215 Less: Reserves for unearned income................. 248 96 50 2 102 Less: Reserves for losses.................................... 77 31 24 6 17 Total receivables — Net......................................... 4,474 1 ,709 1,413 253 1 ,097 Cash......................................................................... 277 89 115 30 44 Other loans and investments.................................. 118 34 42 2 40 U.S. Government obligations............................. 6 5 Other marketable securities............................... 21 7 4 9 Nonmarketable securities 5................................ 91 22 36 1 31 Other assets...................................................... 71 23 18 4 26 Total assets...................................................... 4,941 1,855 1,590 288 1,208 Liabilities and capital Loans and notes payable to banks......................... 1,470 522 513 162 274 Short-term............................................................ 1,401 478 506 162 253 Long-term............................................................ 69 41 7 21 Commercial paper................................................... 903 402 249 22 231 Short-term............................................................ 885 402 248 22 214 Directly placed................................................ 551 308 207 35 Dealer placed................................................... 334 93 41 22 178 Long-term............................................................ 18 ..... 17 Directly placed................................................ 1 ........ 1 Dealer placed................................................... 17 17 Other short-term notes........................................... 65 22 24 5 13 Deposit liabilities..................................................... 16 ........ 14 Hypothecated 6.................................................... 7 ........ 7 Other 7.................................................................. 9 . . • a ■ 7 1 Other current liabilities 8........................................ 189 58 50 5 77 Other long-term indebtedness................................ 1,435 532 477 42 385 Senior debt.......................................................... 893 324 282 11 277 Subordinated debt............................................... 542 208 195 31 108 All other liabilities................................................ 19 4 3 2 9 Capital and surplus................................................. 844 315 259 50 218 Total liabilities, capital and surplus............... 4,941 1,855 1,590 288 1,208 Memo: Short-term debt................................................ 2,351 903 781 189 480 Current liabilities................................................ 2,556 961 842 194 558 Long-term debt.................................................... 1,522 574 484 43 423 Total debt............................................................ 3,873 1 ,478 1,263 232 902 Commercial paper—Directly placed................. 552 308 208 35 Commercial paper—Dealer placed.................... 351 93 41 22 195 Number of companies............................................. 571 187 255 56 73 For notes see p. 827. 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BUSINESS FINANCE COMPANIES 825 TABLE 8. PERCENTAGE DISTRIBUTION OF ASSETS AND LIABILITIES OF BUSINESS FINANCE COMPANIES, JUNE 30, 1965 Companies specializing in: Balance sheet item All business Business, industrial, finance and farm equipment Commercial accounts Other business companies financing receivable financing Factoring financing Assets Consumer receivables.............................................. 2.8 4.8 3.1 ♦ 0.2 Sales receivables.................................................. 2.2 4.7 1.3 0.2 Retail passenger car paper............................. 0.1 0.1 0.3 Other retail consumer goods paper............... 2.1 4.7 0.9 0.1 Mobile homes and “campers”................... 0.2 0.1 0.6 • Airplanes, boats, etc.................................... 0.2 0.6 All other....................................................... 1.6 3.9 0.3 0.1 Home repair and modernization loans......... Personal cash loans............................................. 0.6 * 1.8 ♦ * Business receivables................................................ 93.6 94.0 90.0 89.9 98.7 Wholesale paper.................................................. 19.3 39.4 4.0 13.3 Automobiles.................................................... 2.9 3.7 0.6 5.5 Other consumer goods.................................... 0.8 1.6 0.5 0.2 Other, including inventory loans.................... 15.6 34.1 2.8 7.5 Retail paper......................................................... 36.0 47.7 12.6 57.5 Commercial vehicles........................................ 17.0 9.3 1.4 53.2 Business, industrial, and farm equipment.... 19.0 38.3 11.3 4.2 Lease paper.......................................................... 6.9 2.4 2.8 0.3 20.8 Business equipment and motor vehicles........ 6.7 2.3 2.5 0. 3 20.5 Other................................................................ 0.2 0.2 0.3 0.2 Other business credit 1........................................ 31.4 4.5 70.7 89.6 7.0 Loans on commercial accounts receivable 2.. 12.6 1.4 35.2 10. 1 0.7 Factored accounts receivable 3....................... 6.6 0.3 9.2 59.0 0.1 Advances to factored clients........................... 1.8 2.3 17.4 Rediscounted receivables 2............................ 3.2 0.2 6.3 4.5 Other 4............................................................. 7.2 2.6 17.6 3. i 1.7 Other receivables..................................................... 0.7 0.4 0.4 0.3 1.8 Total receivables—Gross......................................... 97.1 98.9 93.5 90.3 100.6 Less'. Reserves for unearned income................. 5.0 5.2 3.1 0.7 8.4 Less: Reserves for losses..................................... 1.6 1.7 1.5 2.1 1.4 Total receivables—Net............................................ 90.5 92.1 88.9 87.5 90.8 Cash....................................................................... 5.6 4.8 7.2 10.4 3.6 Other loans and investments.................................. 2.4 1.8 2.6 0.6 3.3 U.S. Government obligations............................. 0.1 0.3 Other marketable securities................................ 0.4 0.4 0.3 0.7 Nonmarkctable securities 3............................... 1.8 1.2 2.3 0.4 2.6 Other assets.............................................................. 1.4 1.2 1.1 1.4 2.2 Total assets...................................................... 100.0 100.0 100.0 100.0 100.0 Liabilities and capital Loans and notes payable to banks........................ 29.8 28.1 32.3 56.3 22.7 Short-term............................................................ 28.4 25.8 31.8 56.3 20.9 Long-term............................................................ 1.4 2.2 0.4 1.7 Commercial paper.................................................. 18.3 21.7 15.7 7.6 19.1 Short-term............................................................ 17.9 21.7 15.6 7.6 17.7 Directly placed................................................ 11.2 16.6 13.0 2.9 Dealer placed................................................... 6.8 5.0 2.6 7.6 14.7 Long-term............................................................ 0.4 0.1 1.4 Directly placed................................................. 0.1 ........ Dealer placed................................................... 0.3 ........ 1 .4 Other short-term notes........................................... 1.3 1.2 1.5 i. 7 1.1 Deposit liabilities.................................................... 0.3 0.9 ........ 0.1 Hypothecated 6.................................................... 0.1 0.4 ........ ........ Other 7.................................................................. 0.2 0.4 0.1 Other current liabilities 8........................................ 3.8 3.1 3.1 1.7 6.4 Other long-term indebtedness................................ 29.0 28.7 30.0 14.6 31.9 Senior debt.......................................................... 18.1 17.5 17.7 3.8 22.9 Subordinated debt............................................... 11.0 11.2 12.3 10.8 8.9 All other liabilities.................................................. 0.4 0.2 0.2 0.7 0.7 Capital and surplus................................................ 17.1 17.0 16.3 17.4 18.0 Total liabilities, capital and surplus............... 100.0 100.0 100.0 100.0 100.0 Memo: Short-term debt................................................... 47.6 48.7 49.1 65.6 39.7 Current liabilities................................................ 51.7 51.8 53.0 67.4 46.2 Long-term debt.................................................... 30.8 30.9 30.4 15.0 35.0 Total debt............................................................ 78.4 80.0 79.4 80.6 74.7 Commercial paper—Directly placed..................... 11.2 16.6 13.1 2.9 Commercial paper—Dealer placed....................... 7.1 5.0 2.6 7.6 16.1 For notes see p, 827. 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826 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 turity of the loans financed by the several cured personal loans. As of June 30, 1965, types of companies. Personal cash loans and capital accounted for 17 per cent of the most types of consumer instalment sales funds of business finance companies and 12 contracts are usually of longer maturity than and 20 per cent, respectively, of the funds of the average loan held by business finance sales and personal finance companies (Table companies. Personal and sales finance com­ 9). panies, therefore, undertake a significant Funds for equipment financing specialists. proportion of longer-term borrowing to Equipment financing specialists concentrate match the longer-term structure of their as­ on loans that have lengthy maturities and sets. On the other hand, most business fi­ are secured by the equipment financed. Cor­ nance companies, because they finance short­ respondingly, the long-term debt market is term loans, obtain the largest portion of an important source of their funds—more their debt from the short-term market. than 30 per cent on June 30, 1965. Because these companies tended to be larger, they also obtained a higher proportion of their TABLE 9. DISTRIBUTION OF LIABILITIES OF FINANCE COMPANIES, JUNE 30, 1965 short-term funds from directly placed com­ (In per cent) mercial paper than any of the other types of business finance companies. As a group, Type of company these companies were less dependent upon Item Sales Personal Business direct bank loans for financing than either finance finance finance the specialists in factoring or those in ac­ Lo t a o n b s a a n n k d s n .. o .. t .. e . s .. . p .. a .. y .. a .. b .. l . e .. ........ 10.8 19.5 29.8 counts receivable financing. Short-term............................ 10.0 19.2 28.4 Long-term............................ .8 .3 1 .4 Funds for companies specializing in loans Co S m h m or e t r - c te ia r l m p .. a . p ... e .. r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 0 0 . . 7 7 1 1 8 7 . . 3 9 on commercial accounts receivable. The pat­ Directly placed.............. 29.2 11.2 Dealer placed....................... 1.5 6.8 tern of financing presented by the commer­ Long-term................................ .4 Directly placed..................... J cial finance companies in the 1965 survey of Dealer placed....................... .3 Other short-term notes............... 1.7 L4 1.3 finance companies reflects the diversified na­ Deposit liabilities........................ 1.1 4.9 .3 Hypothecated 6....................... .3 . 1 ture of the business in which these com­ Other 7. ................................... 1 J 4.6 .2 Other current liabilities 8............ 8,0 3.5 3.8 panies are engaged. These companies engage Other long-term indebtedness... 34.8 40.4 29.0 Senior debt............................... 25.6 29.8 18.1 Subordinated debt................... 9.2 10.6 11.0 in short- and intermediate-term financing All other liabilities...................... .5 1.0 .4 Capital and surplus..................... 12.3 20.0 17.1 and hold a large percentage of secured loans. Total liabilities Their liability pattern is very like that of the and capital................... 100.0 100.0 100.0 equipment financing specialists in terms of For notes see p. 827, short- and long-term financing. However, compared to the latter companies, commer­ Given the nature of their loans and the cial finance concerns rely more for short­ smaller size of the companies involved, busi­ term financing on bank loans and less on the ness finance companies usually maintain commercial paper market, even though this higher capital ratios than sales finance com­ market is still an important source of bor­ panies, At the same time, since business rowing for the larger companies. loans are almost always secured, business Funds for factoring specialists. The fac­ finance companies tend to show slightly toring specialists have a completely different lower capital ratios than do the personal fi­ pattern of borrowing. Their short-term debt nance companies, which specialize in unse­ is a much higher proportion of their total Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BUSINESS FINANCE COMPANIES 827 borrowing than is true for the other business between 1960 and 1965 while wholesale finance companies. Furthermore, they rely auto paper decreased 19 per cent. much more heavily on bank loans. Because Except for a shift within short-term debt, they tend to be small, factoring specialists these companies did not make significant use the commercial paper market very little changes in their sources of funds between and only through dealers. Their proportion 1960 and 1965. The 1965 survey showed, of equity financing, however, was approxi­ however, that business finance companies mately the same as for all business finance had availed themselves of funds in the companies taken as a group (Table 8). The commercial paper market to a much greater extremely high percentage of bank loans and extent than in 1960. The number of com­ the low percentage of long-term debt reflect panies in the $25 million-and-over category the short maturities and seasonally fluctuat­ had increased, and some of the larger ones ing business involved in factoring. had become better established and, there­ fore, more attractive to investors in commer­ cial paper. At the same time, because the COMPARISON BETWEEN 1960 AND 1965 amount of funds available in the commercial paper market had increased, this market be­ Business finance companies showed a shift came relatively more accessible. Even though between the 1960 and 1965 surveys away they were still heavy users of bank loans, from wholesale paper on automobiles and business finance companies increased their into the financing of retail paper on com­ commercial paper debt from approximately mercial, industrial, and farm equipment, one-seventh of their funds in 1960 to a little commercial vehicles, and leases. The latter more than a fifth in 1965, and their bank type of retail financing increased 65 per cent debt decreased correspondingly. NOTES TO TABLES 1 Includes export-import credits. < Deposits not withdrawable during term of loan. 2 Net of balances withheld. 7 Includes short-term certificates of thrift or investment. 3 Less liability to factored clients. * Includes dealer reserves and all tax accruals. 4 Includes Ioans on open credit, dealer capital loans, small loans for business or farm purposes, and all other business loans not elsewhere * Less than $500,000 or less than .5 of 1 per cent. classified. t Percentages are of amounts of each category held by finance 5 Includes investment in foreign subsidiaries and affiliates and in companies. nonconsolidated domestic companies. Note.—Components may not add to total due to rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statements to Congress Statements before the Committee on Banking sions, paragraph 20 of Section 9 of the Fed­ and Currency, House of Representatives, eral Reserve Act and Section 5136 of the September 25, 1968, concerning State- Revised Statutes. chartered banks establishing "operations The 20th paragraph of Section 9 of the subsidiaries” and "loan production offices.” Federal Reserve Act provides that “State Statement by William McChesney Martin, member banks shall be subject to the same Jr., Chairman, Board of Governors of the limitations and conditions with respect to the Federal Reserve System. purchasing, selling, underwriting, and hold­ ing of investment securities and stock as are On August 14, 1968, the Board of Gov­ applicable in the case of national banks un­ ernors of the Federal Reserve System an­ der paragraph ‘Seventh’ of Section 5136 of nounced that it had concluded that Federal the Revised Statutes. . . .” law does not prohibit a State-chartered bank Section 5136 of the Revised Statutes lists that is a member of the System from estab­ the corporate powers of national banks, in­ lishing operations subsidiaries—that is, sep­ cluding (in paragraph seven) the power to arate corporations wholly owned by the exercise “all such incidental powers as shall bank, performing functions that the bank is be necessary to carry on the business of authorized to perform directly at domestic banking.” After this reference to “inci­ locations where the bank is allowed to do dental powers,” paragraph seven specifies business. Previously, the Board had inter­ other banking functions, such as receiving preted the statutes involved as generally pre­ deposits and making loans. Provisions speci­ venting State member banks from purchasing fying some limitations on investments by a the stock of corporations, including those national bank for its own account are then created to perform functions the banks could stated, followed by this sentence: “Except perform themselves. as hereinafter provided or otherwise per­ At the same time, the Board reversed an­ mitted by law, nothing herein contained other earlier position by announcing that a shall authorize the purchase by the associa­ loan production office established by a mem­ tion [meaning the national bank] for its ber bank will not be considered a branch if it own account of any shares of stock of any engages solely in certain preliminary and corporation.” servicing functions in connection with loans The Board has the responsibility of inter­ that are approved and disbursed at the bank’s preting, as to State member banks, the main office or a branch. meaning of the sentence last quoted. Its OPERATIONS SUBSIDIARIES interpretation, as announced last month, is In reaching its decision regarding operations that the incidental powers granted to na­ subsidiaries, the Board reexamined its prev­ tional banks by paragraph seven include the ious interpretations of two statutory provi­ power to choose among alternative forms 828 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

829 of organization of their operations, and to regarding purchase of stock for a bank’s own select the form they think is most efficient. account, which was added in 1933, was in­ One method of organization is through a tended to repeal this authority. department of the bank; an alternative is a To repeat, that sentence reads as follows: subsidiary wholly owned by the bank. The “Except as hereinafter provided or otherwise decision as to which of the two is more permitted by law, nothing herein contained efficient is one that bank management is best shall authorize the purchase by the associa­ qualified to make, and one that our free tion for its own account of any shares of the enterprise system normally leaves to man­ stock of any corporation.” One way to con­ agement in the absence of some overriding strue this sentence would be to read it as public interest. It should be emphasized that saying: “A national bank shall not acquire the question is purely one of organizational the stock of any corporation unless the structure, since the subsidiary is strictly acquisition is for the account of a customer, limited to functions the bank is already or unless the acquisition is authorized ex­ authorized to perform. pressly, and not by implication, by a Fed­ Obviously, opinions may differ as to how eral statute.” Another way would be to read to interpret such a broad phrase as “such it as: “Nothing in the preceding sentences incidental powers as shall be necessary to regarding purchases of investment securities carry on the business of banking.” Some by national banks shall be construed to in­ light on its meaning may be shed, however, clude purchases of stocks.” from an examination of legislative history The first interpretation would mean read­ and judicial interpretations. ing the sentence as overriding the authority In 1927 the Congress amended paragraph to exercise incidental powers, insofar as such seven to include a proviso limiting invest­ incidental powers include the power to ac­ ment by a national bank in a particular kind quire stock. But such a construction would of operations subsidiary—a corporation or­ be disruptive, and could hardly have been ganized to conduct a safe deposit business— intended by Congress. For the courts have to 15 per cent of its capital and surplus. The long recognized that a national bank may, report of the House Committee on Banking “as incidental to the power to loan money and Currency accompanying that legislation on personal security . . . accept stock of an­ commented that this proviso “recognizes and other corporation as collateral, and by the affirms the existence of a type of business enforcement of its rights as pledge it may which national banks are now conducting become the owner of the collateral . . .” under their incidental charter powers,” add­ [California Bank v. Kennedy, 167 U.S. ing that “this is a business which is regularly 362, 366 (1897)]. If the sentence relating carried on by national banks and the effect to purchases of stock were intended to over­ of this provision is. . . primarily regulative” ride the incidental powers clause, it would [H. Rept. No. 83, 69th Cong., 1st sess., negate not only the power to establish an pages 3, 4], In other words, in 1927 the operations subsidiary but also the power to Congress recognized the authority of na­ purchase stock pledged as collateral where tional banks under the incidental powers the acquisition is necessary to protect the clause to establish an operations subsidiary. bank against loss. The question remains whether the sentence Doubtless other ways of reading this sen- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

830 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 tence will occur to you. I have no desire to “purchase and sell investment securities to try to convince you that there is only one for their customers to the same extent as correct way to read it, since the Board, it­ heretofore, but hereafter they are to be self, has had a great deal of difficulty in authorized to purchase and sell such securi­ grappling with it. But it does seem clear ties for their own account only under such that reasonable men may, and have, come limitations and restriction as the Comp­ to differing conclusions as to what the lan­ troller of the Currency may prescribe, sub­ guage means. ject to certain definite maximum limits as to We should try, therefore, to discover from amount.” the legislative history of the Banking Act of Unfortunately, neither the House nor the 1933 what interpretation would best carry Senate committee reports refer specifically out the purpose of Congress in enacting it. to the sentence regarding purchase of stock The Senate committee report (S. Rept. No. for the bank’s own account with which we 77, 73d Cong., 1st sess.) informs us (page are now concerned. But 1 find it difficult to 2) that the committee had decided “to de­ conclude that a Congress concerned with fer the preparation of a completely compre­ correction of “manifest immediate abuses” hensive measure for the reconstruction of intended to repeal national banks’ authority our banking system,” in order to concentrate to establish operations subsidiaries, let alone instead on legislation needed “to correct to repeal their authority to acquire stock manifest immediate abuses.” High on the pledged as collateral where necessary to col­ list of abuses cited as needing correction lect a loan. Rather, the Congress seems to was the involvement of commercial banks have been concerned with bank investments in speculation in corporate stocks. Thus, the and certain kinds of subsidiaries and other committee report included at page 8 the fol­ affiliates, particularly those “which devote lowing comments: themselves in many cases to perilous under­ The outstanding development in the commercial writing operations, stock speculation, and banking system during the prepanic period was the maintaining a market for the banks’ own appearance of excessive security loans, and of over­ stock often largely with the resources of the investment in securities of all kinds. parent bank,” to quote the Senate committee report (page 10). (A] very fruitful cause of bank failures, especially Moreover, the Congress obviously intend­ within the past three years, has been the fact that ed, when it subjected State member banks the funds of various institutions have been so ex­ tensively “tied up” in long-term investments. The to the restrictions contained in paragraph growth of the investment portfolio of the bank itself seven, to achieve uniformity of regulation, has been greatly emphasized in importance by the not to subject State member banks to stricter organization of allied or affiliated companies under State laws, through which even more extensive ad­ regulation than national banks. And as you vances and investments in the security market could know, the Comptroller of the Currency in­ be made. terprets paragraph seven as not preventing To correct these conditions, the 1933 Act national banks from establishing operations included provisions for “more careful re­ subsidiaries. striction of investments,” in the words of the The Board accepts the responsibility for committee report, including amendments to interpreting the statutes that we enforce as paragraph seven permitting national banks to State member banks. After the careful Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 831 review outlined above, the Board concluded the statute, an office at which any of the that State member banks are not prohibited three enumerated functions is performed from establishing operations subsidiaries to must be regarded as a branch. None of these perform functions that the banks are author­ three functions would be performed at a ized to perform directly. Taking into ac­ loan production office covered by the count the Comptroller’s views, this interpre­ Board’s interpretation. tation also achieves the congressional pur­ The Board’s August 14 interpretation re­ pose of establishing uniform rules rather verses a position taken in 1967 and so far than conflicting ones. as Federal law is concerned places State member banks on essentially the same foot­ LOAN PRODUCTION OFFICES ing with national banks in regard to loan The other interpretation announced on Au­ production offices. A loan production office gust 14 relates to “loan production offices,” of the type described in the ruling may be that is, domestic offices where the following established and operated by a bank either functions are performed: soliciting loans on directly, or indirectly through a whollybehalf of a bank, assembling credit informa­ owned subsidiary corporation. tion, making property inspections and ap­ Many large banks have for years sent praisals, securing title information, prepar­ traveling respresentatives to all parts of the ing loan applications, soliciting investors to nation to solicit loan business. The loan pro­ purchase loans from the bank, seeking in­ duction office gives the traveling representa­ vestor contracts with the bank for servicing tive—who does not approve loans or dis­ such loans, and other similar agent-type burse money but merely engages in prelimi­ activities. nary and servicing functions—a place to The Board’s position is that a domestic hang his hat. loan production office of that type is not a A traveling representative is unable to branch of a bank within the meaning of meet certain specialized needs, such as serv­ Federal law. A State member bank, conse­ icing mortgage loans. The loan production quently, need not obtain Board approval to office would provide a fixed location where set up such an office. Such offices will, how­ these loans may be serviced with greater ever, be subject to supervision and examina­ convenience to the customers. But for the tion through the regular bank examination most part, the loan production office would procedures of the Board. Activities of a loan production office will be taken into account perform much the same function as the trav­ at the time of each bank examination. eling representative that banks have used The interpretation involves Section 5155 for years. (f) of the Revised Statutes (12 U.S.C. 36), The question of whether a State member which provides that the term branch “shall bank may establish such an office will now be held to include any branch bank, branch depend solely on State law. If the law of the office, branch agency, additional office, or State where the bank is chartered, as inter­ any branch place of business ... at which preted by State authorities, prohibits the deposits are received, or checks paid, or bank from conducting its operations in this money lent.” This section applies to State fashion, that will end the matter. If advance member banks through paragraph 3 of Sec­ approval of the supervisor must be obtained tion 9 of the Federal Reserve Act. Under in each case under State law, that require- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

832 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 merit will continue to apply; if, on the other which primary reliance should be placed on hand, the State law provides general author­ the State legislatures in determining whether ity for the bank to establish such offices further restrictions are needed to maintain without specific approval of the supervisor the kind of banking structure best suited to in each case, that law will apply, as to offices conditions in each State. established in the home State. Of course, if The loan production office, instead of the bank seeks to establish an office in an­ stifling competition, may well encourage it other State, it will have to comply with the and thus improve the efficiency of the bank­ laws of its home State as well as those of ing system in meeting credit needs. A bank the State where the office is to be located, that sets up a loan production office would including advance approval of the super­ know from the start that it is limited in its visor if the laws of that State so provide. ability to attract banking customers as such The Board is barred by law from author­ since it is unable to offer a full range of izing a bank to establish a branch where services—namely to receive deposits, cash State law prohibits branching. In a State checks, and lend money on its own premises. that prohibited branches but did not classify Managers of such offices would conse­ a loan production office as a branch, the quently seek to increase efficiency to as high Board’s 1967 interpretation, therefore, pro­ a level as possible to attract business. This, hibited a State member bank from establish­ in turn, could be expected to stimulate com­ ing such an office even though the State per­ peting lenders to improve their services or mitted it. It thus had the effect of overriding lower their costs, to the ultimate benefit of State law as to one class of State banks— the consumer in the form of lower interest those that are members of the Federal Re­ rates and better terms. serve System—but not as to other State If the Congress should conclude that loan banks. And the Federal statute involved was production offices should be prohibited or interpreted at the same time by the Comp­ controlled more stringently than they now troller of the Currency as permitting na­ are under Federal and State law, whatever tional banks to establish such offices. On re­ additional rules are established should, of consideration, the Board concluded that this course, apply across the board, rather than result is neither required by the language of to State member banks alone. the statute nor warranted by considerations The question of authority to establish of public policy underlying the statute. loan production offices is, of course, only Since the establishment of loan produc­ one facet of the much broader question of tion offices by banks is a relatively new de­ the extent to which banks should be author­ velopment, there is little evidence available ized to expand their services. to enable us to determine what, if any, effect I assume that there is wide agreement it will have on competition. But it seems to that banks should be allowed some latitude me that the burden should be on those who to meet their customers’ constantly changing are concerned about this form of competi­ needs. The Board continues to believe, how­ tion to prove that further restrictions on its ever, that this movement, growing more ap­ use are needed to protect the public, rather parent each day, has its reasonable limits, than simply to protect one competitor from unless appropriate financial services arc to another. And this may well be an area in become merely the incidental rather than Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 833 principal character of banking. I feel that became necessary in order for the bank obliged, therefore, to point out to your com­ to realize on a debt previously contracted. mittee that this could happen if banks are I continue to believe that the incidental allowed to establish'one-bank holding com­ powers clause cannot properly be inter­ panies in order to move further and further preted as authorizing member banks to pur­ into other fields. We believe that the recent chase stock in any other circumstances un­ trend toward the establishment of such com­ less specifically permitted to do so by the panies by banks underscores the need for a Federal banking statutes. reexamination of the Bank Holding Com­ I agree with the Board that establishment pany Act. The Board is currently studying by a bank of a wholly-owned subsidiary cor­ this important question that has so many poration to engage in activities that the bank ramifications, not only for banking but for itself may perform can be a convenient alter­ the basic structure of our economy. native organizational arrangement. How­ ever, T disagree with the Board’s current view that the incidental powers clause permits a Statement by J. L. Robertson, Vice Chair­ bank to organize its operations under such man, Board of Governors of the Federal an arrangement. Even if I agreed with the Reserve System. Board’s current view of the incidental pow­ ers clause, I believe that the question of I am pleased to have this opportunity to tell whether banks should be permitted to estab­ your committee why I dissented from the lish operations subsidiaries should have been Board’s action reversing its interpretations resolved through legislation rather than by on “operations subsidiaries” and “loan pro­ changing our interpretation of the law. duction offices.” I am convinced, from a review of court decisions relating to the incidental powers OPERATIONS SUBSIDIARIES of national banks, that such powers are lim­ As recently as 1966, the Board reexamined ited to those that are necessary or required and confirmed a long-standing position that to enable such banks to perform their the so-called “stock-purchase prohibition” authorized functions, and that, in deciding of Section 5136 of the Revised Statutes, whether this is the case, the general intent which is made applicable to member State of the statutes under which the banks oper­ banks by the 20th paragraph of Section 9 ate, as well as long continued administrative of the Federal Reserve Act, forbids the pur­ practice, may properly be considered. chase by a member bank “for its own ac­ Tn this connection, I am impressed by the count of any shares of stock of any corpora­ reasoning of the Supreme Court in First Na­ tion,” except as specifically permitted by tional Bank v. Missouri, 263 U.S. 640. In provisions of Federal law or as comprised holding in 1924 that national banks did not within the concept of “such incidental pow­ have incidental power to establish branches, ers as shall be necessary to carry on the the Court stated: business of banking,” referred to in the first sentence of paragraph “Seventh” of R.S. The extent of the powers of national banks is to be 5136. Until August 14, 1968, the Board measured by the terms of the federal statutes re­ lating to such associations, and they can rightfully considered that the only purchases of stock exercise only such as are expressly granted or such comprised within such concept were those incidental powers as are necessary to carry on the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

834 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 business for which they are established |263 U.S. One of the principal banking problems of at 656; emphasis added]. the 1920’s that led to the enactment of the An alternative organizational arrange­ Banking Acts of 1933 and 1935 was the ment of the sort we are discussing, although “affiliate system,” including member banks’ it may promote convenience, is not neces­ ownership of other corporations. Among the sary in order for a bank to carry on its bank­ objectives of the Banking Act of 1933, as ing business. As the Supreme Court noted expressed by the Senate Banking Commit­ in its ruling that national banks do not have tee, was “to separate as far as possible na­ incidental power to pledge their assets as tional and member banks from affiliates of security for private deposits, “A practice is all kinds” (S. Rept. No. 77, 73d Cong., not within the incidental powers of a cor­ page 10). Together with a number of other poration merely because it is convenient in provisions of the Banking Act of 1933, the the performance of an express power” stock-purchase prohibition of R.S. 5136 [Texas & Pacific Railway Co. v. Pottorff, served the purpose of confining the bank­ 291 U.S. 245, 255 (1934)]. affiliate system by preventing banks from Even if the incidental powers clause, purchasing the stock of other corporations, standing alone, were construed as permitting except to the limited extent that Congress a national bank separately to incorporate specified. its departments, T believe that the stock­ My experience in the supervison of banks purchase provision, which was enacted sub­ has revealed that the likelihood of unsafe sequent to the incidental powers clause, was and unsound practices, violations of law, intended to prohibit the exercise of that pro­ and other developments contrary to the pub­ cedure. lic interest is significantly greater when From time to time over the years since banks operate through subsidiary corpora­ the stock-purchase prohibition was enacted tions. There appears to be an inevitable tend­ in 1933, the contention has been advanced ency for some banks, in time, to regard their that such prohibition was intended by Con­ subsidiary corporations as separate enter­ gress only to prevent banks from investing prises and thereupon to conduct their oper­ in corporate stock for income and capital ations in a way that is unsuitable for a part appreciation, in the way that banks invest in of a banking enterprise, to disregard perti­ debt obligations of the Federal Government, nent restrictions and requirements, and, in municipalities, and private corporations. In particular, to venture through their subsid­ my view, although the prevention of such iaries into activities that arc beyond the investment in stocks undoubtedly was a ma­ powers of the parent bank. It is reasonable jor congressional purpose, the stock-pur­ chase prohibtion was intended generally to to infer that Congress, having in mind the pre-depression affiliate system, concluded prevent the purchase of the stock of corpora­ tions, including those created to perform that the American banking system and the functions that could be performed by the general welfare would be benefited by limit­ bank itself. Until recently, the prohibition ing the authority of member banks to con­ was so interpreted and applied by the Board duct their operations through separately in­ (and by the Comptroller of the Currency corporated organizations. until a little less recently) since its enact­ I can readily understand how others might ment. arrive at a different decision, but 1 find it Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 835 difficult to believe that others would deny and it may attempt to prevent other banks that there are sound legal principles support­ from establishing such offices within its ing the Board’s earlier position that the boundaries. However, insofar as Federal law stock-purchase prohibition prevents the es­ is concerned, there would be no impediment tablishment or acquisition of operations sub­ to the establishment of such offices or legal sidiaries except as specifically authorized or control over such establishment. recognized by Federal law. In such circum­ In 1967 the Board published an interpre­ stances, changing by administrative action tation on loan production offices in which the meaning of a provision of law should be it reiterated a position that it had taken in avoided. Under our form of government, the 1964 with respect to the operation by a appropriate body to change the law in those Missouri bank—at that time a member circumstances is the Congress. State bank—of certain subsidiary offices in an adjacent State. LOAN PRODUCTION OFFICES Section 5155(f) of the Revised Statutes, The Board’s authorization of operations sub­ which is made applicable to member State sidiaries is made more significant by the banks by the third paragraph of Section 9 companion ruling on so-called “loan produc­ of the Federal Reserve Act, provides that tion offices.” Such ruling actually expands the term branch “shall be held to include the substantive powers of member banks. any branch bank, branch office, branch Taken in conjunction with the authoriza­ agency, additional office, or any branch tion of operations subsidiaries, its potential place of business ... at which deposits are effect is so broad that it raises fundamental received, or checks paid, or money lent.” questions regarding the structure of banking Until August 14, 1968, the Board con­ in this country. sidered that loan production offices consti­ Just what is a loan production office? tute places of business at which money is Essentially it is an office that is open to the lent and therefore could be established or public and staffed by employees of the bank acquired by a member bank only at places regularly engaged in contacting potential where it might establish a branch and with borrowers, soliciting applications for loans, the approval of the appropriate Federal negotiating terms, and processing loan ap­ bank supervisory agency—the Comptroller plications. It does not formally approve of the Currency in the case of national loans, and it has no funds of its own to dis­ banks and the Board in the case of member burse to borrowers. Approval of loans and State banks. disbursement of funds take place only at the In reaching that conclusion, the Board main office or a branch of the bank. If such offices constitute branches, a mem­ expressed the view that the statutory enumer­ ber bank may establish them only with Fed­ ation of three specific functions—receipt of eral supervisory approval and only to the deposits, payment of checks, and lending of extent permitted by the branch banking money—is not meant to be exclusive but to laws. If such offices are not branches, they assure that offices at which any of these may be established at any place in the functions is performed are regarded as United States without such supervisory ap­ branches by the bank regulatory authorities. proval. A State may prohibit banks char­ In other words, the specification of these tered by it from establishing such offices, three functions, as a U.S. Court of Appeals Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

836 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 recently pointed out, “was not intended to ized office of the bank, thereby substantially be exhaustive” [Dickinson v. First National nullifying the legislative purpose. Such final Bank in Plant City, 5th Cir., No. 25173, step could be performed at an authorized opinion of September 12, 1968, page 16], office almost instantaneously by telephone Stated still another way, Congress’ real pur­ or other electronic device. pose in enacting the branch statute was to Lawmaking by administrative interpreta­ prevent significant banking functions from tion to fill gaps in statutory provisons is un­ being carried on except at governmentally avoidable. However, both as a lawyer and authorized offices. as a believer in the concept of separation of In view of a footnote in its August 14 governmental powers, I am of the view that ruling, the Board apparently still subscribes such lawmaking should be held within the to that view. However, contrary to the im­ limits of the language of the statute, its re­ plication in its 1967 ruling, last month’s rul­ lationship to other provisions of law, and the ing implies that the operations of a loan pro­ purposes and intentions of the legislature in duction office do not constitute significant its enactment. Although Congress certainly banking functions of the type Congress had intended that member State banks should not in mind when it enacted the Federal branch be treated more restrictively than national banking law. banks with respect to purchases of corporate In my judgment, loan production offices stocks and establishment of branches, the constitute branches for the purpose of Fed­ law does not place upon the Board a duty eral law for two reasons: First, the opera­ to promote competitive equality. On the con­ tions of such offices constitute the lending trary, as the Court implied in the recent liti­ of money at offices of the bank within the gation on whether national banks may un­ meaning of the specific language of the Fed­ derwrite “revenue bonds,” to do so would eral branch statute; second, those operations constitute a failure on the part of the Board constitute significant banking functions to perform its duty to interpret and enforce (even if not regarded as the lending of those laws with respect to member State money) that Congress contemplated should banks. [See Baker, Watts & Co. v. Saxon, be made available only at governmentally 261 F. Supp. 247 (1966), affirmed 392 F. authorized offices. 2d 497 (1968)]. In my view, the facts that final approval An administrator may not like the result of loans arranged at production offices to which he is led by the law any more than emanates from the home office or author­ the person whose conduct is affected. Never­ ized branches and that credits to borrowers’ theless, his remedy is the same as the pri­ accounts for the proceeds of loans are en­ vate person’s. He must direct his efforts to­ tered in the bank’s books at such authorized ward getting the legislature—the Congress offices should not be controlling. Otherwise, insofar as Federal law is concerned—to member banks can conduct their operations change the law. This point was made quite —receiving deposits as well as lending—at effectively by Judge Thornberry in concur­ numerous locations anywhere in the coun­ ring in the recent case relating to the power try, without the approval of supervisory of national banks to engage in the insurance authorites, by the means of performing the business when he stated that “From the eco­ final step in each transaction at an author­ nomic standpoint, it may be unfortunate that Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 837 this Court is interfering with the expansion Financial institutions are the major of national banks into the area of credit- source of investment funds. Yet they have related insurance, but the banks should look barely touched poverty areas. A major to Congress, not the Comptroller” [Saxon v. characteristic of such areas is the minimum Georgia Associaton of Independent Insur­ amount of new investment—whether in ance Agents, Inc., 5th Cir., No. 25050, housing, plant and equipment, or public fa­ opinion of August 12, 1968, page 29]. cilities. This lack of investment is reflected The appropriate yardstick for an adminis­ in a low standard of living. Jobs are short. trator to use in making his evaluation is the Decent housing is lacking. Other facilities sound and tested principles of statutory in­ are poor. Any success your committee can terpretation. Only where the application of engender in making investments—whether legal principles clearly indicates that an in equities or debts in the inner cities—more agency has adopted the poorer view as to the possibly would be reflected immediately in meaning of statutory language should it reduced poverty and a higher standard of change an outstanding legal interpretation. living. Tn my judgment, a fair application of those principles indicates that the Board’s earlier PUBLIC POLICY TO rulings on both operations subsidiaries and AID PRIVATE INVESTMENT loan production offices embodied the better Your committee has asked a critical ques­ view of the legal issues involved. Conse­ tion. How can public policy aid the private quently, I had no choice but to express that sector in mobilizing its funds, its innovative judgment in the form of a dissent from the ability, and its cost efficiency calculus, in Board’s action. order to get the job done? Clearly, inner cities have not proved an attractive invest­ * * * ment area for private funds. Market forces Governor Brimmer has asked me to state even with public aid have not developed the that he shares the views expressed in the institutional structure necessary to do the foregoing statement. job. Since our enterprise system is exceed­ ingly efficient in finding profitable outlets for its resources, something must be missing. Statement of Sherman J. Maisel, member, You seek those methods by which public Board of Governors of the Federal Reserve policy can aid in developing an institutional System, before the Subcommittee on Finan­ framework—with all the necessary rewards cial Institutions of the Committee on Bank­ and penalties—that will shift the flow of ing and Currency, U.S. Senate, October 4, funds into these vital areas. 1968. Before proceeding to a more detailed an­ The urban crisis is as pressing a problem as alysis, let me state briefly my own views as any facing our nation. Financial institutions to what paths appear most hopeful. These —whether existing or new—must play a views probably owe more to my 20 years’ major role in solving this problem. T wel­ experience as an urban economist than to come your committee’s decision to hold my past 3 years on the Federal Reserve hearings on this critical topic and the oppor­ Board although both experiences are per­ tunity of appearing today. tinent. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

838 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 Public programs are necessary. There are logical amount of private credit made available falls reasons why private groups without government far short of the amount of lending believed aid cannot solve the inner city problem, necessary on social grounds. A gap exists Maximum use should be made of existing finan­ between community needs and the demand cial institutions. Greatest stress should be placed on activating the normal private economy to use which private ability to pay can make eco­ its own techniques, methods, practices, and motiva­ nomically effective. Any successful program tions. to make additional funds available must Programs should not be limited to urban poverty recognize and bridge this gap. areas. Rather they should be available, also, to those who want to leave such areas as well as in High risks and high costs. The costs of rural areas to keep migration down. making loans in the inner city are far above Specifically, the Government should develop a normal, reflecting the abnormal risks and ad­ program of loan guarantees and subsidies. The ministrative charges involved. The factors programs should be at as wholesale a level as possible. The Government should avoid dealing which cause loans to have a high probability at retail with individual loans. The programs of loss are all highly concentrated in poverty should depend primarily on blanket guarantees areas. The lender must add charges to cover such as those applicable to property improvement these costs to his usual rates if loans are to loans insured by the Federal Housing Administra­ tion under Title J of the National Housing Act and be made in substantial volume. not on Government agency analysis of individual A considerable danger exists in these loans such as carried out by the FHA under Title areas of a sharp fall in borrowers’ incomes. II of that Act. Aid, counseling, excess costs, and interest rates should all be eligible for subsidization. These tend to be extremely volatile—“here While working mainly through existing insti­ today, gone tomorrow,” and vice versa. tutions, the Government should welcome and Concern over the inner city recognizes the utilize the wide variety of new institutions and existence of marginal employment and low firms being established by States and by groups of corporations, individuals, and localities. Rather income. These in turn lead to a “last in, than depending primarily upon governmental or first out” job experience; sizable turnover; a nonprofit institutions, the programs should utilize lack of basic savings; and few more fortu­ fully the profit motive. They should risk allowing seemingly high profits provided they arc earned nate families or friends to borrow from. All by high efficiency and productivity. these factors increase the risk of loan de­ Consideration must also be given to the non­ fault. financial factors which lower the desirability of investment. The recently enacted special insurance A second major cause of loan defaults is programs and crime bills are examples of necessary sickness and family dissolutions. Again peo­ improvements which must occur before private ple who live in poverty areas are more prone lending can expand rapidly. to sickness and to the debilitating pathology WHY DON'T EXISTING FINANCIAL of social and family disorganization. And, of INSTITUTIONS MEET THE CREDIT NEEDS course, they are less likely to possess the fi­ OF INNER CITIES? nancial resources to deal adequately with It is hard to accept the idea that certain these problems. credit demands cannot pay the free market Financial inexperience is great. If credit price. However, the entire history of credit­ is to flow into these areas, loans must be short areas both urban and rural as well as made to firms and individuals not used to our continuing attempts to deal with them borrowing in normal credit markets. Un­ show that such situations do exist. Because familiarity with use of credit, lack of mer­ of high lending costs and low incomes, the chandising training, absence of records, and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 839 poor basic accounting ability raise costs per lending other people’s money with a rela­ se. Firms are likely to be small and to trade tively low ratio of capital to risk assets. in the lowest profit sections of the city. Such Their degree of risk exposure—whether by firms throughout the economy tend to be type of loan or area—is restricted by their marginal with high turnover rates and large capital. This has been a problem with some loss ratios. In the poverty areas, the usual inner city banks. Experience has shown that poor experiences are multiplied. aggressive neighborhood lending programs The value of collateral based on property may lead to a high volume of submarginal is less certain than in other areas. Again this loans. Loan policies large enough to have is partly a vicious circle since property had only a minimal effect on their neighbor­ values fluctuate as a result of frequent fi­ hood problems have been sufficient to en­ nancing difficulties. danger such institutions’ capital and at times In addition to high costs, there is a less- depositors. Large city or statewide banks than-normal borrower’s ability to pay even could frequently accept an equivalent standard rates. This follows directly from amount of risk, but they are unlikely to do the existence of poverty. Still worse, the high so because it is unprofitable at the interest charges to cover risks and the existing pov­ rates which can be charged. In contrast, the erty interact to create even greater proba­ single institutions in poverty areas—without bility of default. Asking a borrower in the special protection—may find that they can­ poverty area to pay the costs of the addi­ not even afford to invest the funds they tional risks reduces the likelihood that he themselves have collected from the area. For can carry the burden successfully. This is the area, they become a drain rather than a a familiar cycle. Prices of goods and credit transfusion source for needed additional re­ in the inner city are often extremely high. sources. Yet profits, if anything, appear less than A further problem is the fear of social op­ normal. The payment by families of a dis­ probrium or the risk of being considered proportionate share of their income to cover usurious if a lender tries to cover his actual high costs increases their likelihood of de­ costs. While some still picture the hard­ fault. This in turn raises costs still higher hearted mortgage lender twirling his mous­ and lowers the sellers’ or lenders’ profits. taches as he forecloses on poor Nell, in ac­ Institutional difficulties. Financial institu­ tuality—as most of us are aware—most fi­ tions have not been structured to deal with nancial institutions act in completely the op­ high-risk loans in the inner city. Part of the posite manner. They avoid the image by problem has been a lack of motivation. This avoiding whenever possible making loans can and is being changed. While there are that may lead to foreclosure, garnishment, reports of added funds flowing to these areas or even seemingly hard collection efforts. as a result of increased attention to this Most private financial institutions have problem, it is extremely unlikely that such more than an adequate demand for their changes will serve to make adequate funds funds in lower risk spheres. Potential bat­ available. Why is this? tles and blackening of reputations can be Private financial institutions are not usu­ avoided by refusing to make loans which ally prepared or able to accept high risks. carry a risk of future conflict with indivi­ They are primarily fiduciary institutions duals or neighborhood groups. This is par- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

840 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 ticularly true since the rate charged must a minor burden of the community losses cover the cost of money, of operations, and which arise if such loans are not made. The of risks. When stated as a rate of interest, costs of poverty are borne by the economy such charges appear usurious and tend even as a whole and not by individual firms. Capi­ without collection problems to be a source tal is fungible. It can flee from poverty areas. of conflict and loss of reputation. A basic rationale for government inter­ Even if in times of easier credit institu­ vention in markets exists when the net pub­ tions make such loans, this market is likely lic costs of lending are less than the private to have a low priority when money is harder costs and the net social benefits exceed the to come by. private ones. This seems to be the case in These factors are entirely aside from an this sphere. institution’s lack of expertise in lending in Philanthropy. While the American tradi­ poverty areas. Institutions putting capital tion of philanthropy is renowned, I don’t into the inner city must evaluate special think it can solve the urban problem. Insti­ risks, and they must spend more than a nor­ tutions do have a major stake in our coun­ mal amount of time in counseling, advising, try’s future. They will suffer if the urban and explaining to borrowers both how to problem remains unsolved. The more in­ borrow and how to repay money. A different timate their relationship to the urban core concept of estimating risks is required. The because of location or prior investment, the personnel factors and specialized handling greater their exposure. Nevertheless, de­ leading to a successful loan may differ com­ pending on philanthropy alone is not pletely from those used in the organization’s enough. normal operations. In many cases efforts to The efficiency of business comes from its develop these skills may not have been made analysis of profits. A program based upon simply through neglect. But many other requests to institutions to take losses on institutions that have considered such efforts what should be a major loan portfolio con­ may have shied from them on economic flicts with our enterprise system. While an grounds. institution may be willing to make some External economies. Another reason why charitable loans because of a recognition of private lending is limited in poverty areas self-interest in the solution of social prob­ is that no private firm can capture for its lems, these will be insufficient for the needs. profit and loss statement the total economic It is probably better if charitable contribu­ and social gains which might arise from tions flow through normal channels rather such loans. A problem of inadequate scale than through lending policies. exists. Few private financial institutions can There are also major disadvantages in control a sufficiently large environment to asking the enlightened portion of society to profit from true externalities. An individual bear an undue part of our total burden. institution can profit only indirectly from Those who recognize a social problem potentially high social payoffs arising from should not be asked to pay a higher than enhanced individual and family welfare, normal percentage of the cost of solving it. lower municipal costs, higher land values, National or local needs should be met by all. less crime and social disorganization. This is a major reason for governments. Nor does any institution carry more than Marginal improvements. Some institu- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 841 tional changes are occurring and are useful. with taxable profits. Possibly, however, a They may be necessary for new programs to careful comparison of subsidies made work. They should by themselves lead to through taxes rather than directly would some additional market loans. While im­ show increased efficiency for programs in­ provements should occur, I don’t think the tended to obtain a wide diffusion of decision­ results will be large enough to obviate the making. Such programs as a result might ac­ need for other public measures. cept what initially would appear to be theo­ Financial institutions are in the process retically less efficient methods than that of of recognizing how ill-prepared they have direct payments. been to market their loans and render serv­ In one specific area, present tax laws may ices in the ghettos. They are attempting to actually penalize institutions attempting to modify their lending practices. Many are make more risky loans. Bad debt reserves seeking new ways of finding potential bor­ are based on total experience rather than rowers and of aiding the unskilled to im­ that with specific types of loans. Since pov­ prove their cost analysis so that prospects erty-area loans are much riskier than the for repayments are enhanced. Additional average, an inability to sort them out and services to inexperienced borrowers are put aside larger reserves in advance for tax necessary and are being developed. purposes may give them less than fair tax If investments of a certain percentage of treatment. assets—say 2 or 5 per cent—in particular While more liberal chartering of institu­ types of equities or riskier loans were au­ tions has been suggested, such proposals do thorized for all types of lenders, such actions not attack the basic economic difficulties of might be hastened. The question of adequate making loans that will pay off. Since insti­ charges and profitability would still be para­ tutions with a high level of risky loans tend to have difficulties staying viable under mount, however, so the total results that can present capital requirements, lowering such be expected from the new programs are capital requirements would probably be a probably slight. step backward. More institutions would be Other possible inhibiting forces in making useful only if new chartering was part of a loans are the usury laws and the inability of larger program that underwrote the risks some lenders to accept equity positions. and subsidized part of the costs including When the Small Loan Act was passed, it was those necessary for a much broader type of a great reform. It raised legal interest rates service to borrowers of the new institutions. for legitimate lenders to allow the poor to borrow through other than illegal and truly THE EXAMPLE OF THE HOUSING usurious channels. Perhaps some such PROGRAMS changes may again be needed to make other The difficulties of increasing investment in types of loans from major financial institu­ problem areas of the city and of making tions more feasible. loans to those attempting to leave their pov­ Tax changes are always possible. How­ erty status are so huge that unless all our ever, subsidization through taxes is con­ knowledge and skills are used, progress will sidered by many to be inefficient compared fall far short of needs. What is needed is a to direct assistance. It also has the great dis­ partnership between business and govern­ advantage that it primarily is useful for firms ment. This committee must seek methods Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

842 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 which will properly structure the new rela­ The FHA has been most successful in tionships that are evolving. While statements four separate areas. It was able to establish praising and stressing such partnerships new underwriting techniques to reduce prior have become nearly platitudinous, the ur­ incorrect risk estimates. It helped to change gency of actually creating and perfecting laws to make out-of-State lending more feas­ adequate new techniques still remains. How ible. It made possible very low downpay­ can this committee find the best possibili­ ments for inexpensive houses and longer ties? What sort of structure can the Govern­ amortization periods. It succeeded in using ment develop which so alters the basic mar­ the Government’s credit to reduce potential ket situation and potential profits and losses risks from economic disasters. In many as to enlist to the maximum the skills, the cases, the real risks turned out to be so flexibility, and the ability of the private small that they could easily be paid for by sector to get things done? the borrowers. This is one reason why the In attempting to develop any new pro­ FHA has been supplanted in many local gram, the record of the FHA and the public markets. It primarily remains a program housing programs must be carefully ex­ for out-of-State lenders which face numer­ amined. Congress is not entering the field of ous other underwriting problems engen­ urban investment de novo. It has witnessed dered when investments are made at a dis­ a long record of success and failure. The tance and for the lower price and low down­ area of this experience—housing—will con­ payment units. tinue to require the largest share of urban By allowing sufficient profits, new institu­ funds. In nearly each of the past 20 years, tions emerged to help develop, build, and the Government’s housing programs have finance housing. Some people claim that the undergone congressiomd debate and action. FHA program created more millionaires What institutional changes have resulted? than any other program in our history. Most The continuing debate was sparked by observers believe that this was not bad pub­ the general dissatisfaction with these pro­ lic policy. The program has left us with a grams’ achievements or rather lack of heritage of large suburban builders and de­ achievement in making investments possible velopers; new mortgage lenders; FNMA; in the inner city. The contrast between the and a host of other institutions which suc­ FHA’s suburban success and its near total ceeded in solving and are now holding under flop in the center city has been a constant control our middle-income suburban hous­ source of debate and dismay. As a result, the ing problem. development of ideas of what is needed to On the other hand, the FHA has had make loans possible in the inner core has great difficulty in dealing with individual or been nearly continuous. This year’s Housing out-of-the-ordinary cases. Loans based on Act of 1968 (PL 90-448) breaks numerous new concepts, individual designs, central new paths both in its approach to lending for city land values, older buildings, all proved housing and also in broader spheres such as extremely difficult if not impossible to through the enactment of Title XII—the underwrite. This arises because the FHA National Insurance Development Program. must of necessity use a fairly unskilled, What lessons can be drawn from this prior mass-production, processing system. It can experience? only indirectly and by fixed formulas esti- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 843 mate risks. The lack of progress and delays cessful these programs will be, I assume that in inner city underwriting reflect both true they are based on a proper reading by Con­ complexities and also the problems facing a gress of the record of the type of changes government agency when it attempts to con­ needed to increase investment in the inner sider each application on an individual cities. Major difficulties of actually making basis. the funds available, of implementation, of The difficulty of inner city lending also, of forging the new institutions, and particularly course, has been increased by the inability of blending private initiative and the profit of so many of the potential renters or buyers motive with the Government’s role still re­ to pay the market price for inner city land or main to be solved. building construction. Also, because of pos­ FUTURE LEGISLATION sible falls in income, sickness, or other fam­ If the prior analysis is correct, it seems clear ily problems, risks were high that these fami­ that your committee will be faced with the lies could not meet payments as they came need to consider new programs and new leg­ due. islation, particularly in the nonhousing As you are only too well aware, the FHA sphere. There will be institutional changes has been under constant pressure for admin­ without your action. But they are unlikely istrative changes with the hope that such to be either dramatic or sufficient. The prob­ changes would lead to progress. The ina­ lem is one of transferring possible loans bility to obtain results through such pressure which are now neither viable nor lendable indicates at least to me the existence of basic into loans which both will work out success­ underlying problems rather than adminis­ fully for the potential borrowers and at the trative willfulness or lapses. The fact that same time make profits for the financial in­ this year’s bill establishes many true struc­ stitutions who furnish the funds. tural changes in an attempt to speed up New institutions. A major question is whe­ progress would appear to be a congressional ther new institutions are necessary or de­ recognition of this fact. sirable and, if so, what form they should The list of institutions altered in this bill take. Proposals abound for new institutions is great. The bill authorizes a far wider pro­ at all levels—nationwide development gram of subsidies to span the gap between banks; regional banks; local banks; and income and market costs. It specifies FHA specialized lending and investing corpora­ acceptance of additional risks with respect tions. The forces which led to these sugges­ to properties, locations, and borrowers tions should be carefully analyzed. Decisions which the Congress previously considered are necessary as to their validity. unwise on a policy basis. It provides for di­ While many of the assumptions upon rect aid in counseling poorer credit risks which they are based are implicit, they are and seeks ways to insure the borrower usually rather obvious. A new organization against inability to meet payments. It allows —particularly if it has a glamorous aim— for the development of new institutions for usually starts with drive and vigor. It focuses building, lending, owning, and renting. It attention on a problem. It shows people are authorizes the development of new property interested. On the other hand, it loses time, insurance procedures. energy, and money in getting organized. It While it is still too early to say how suc­ has to hire resources away from elsewhere. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

844 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 Skills are scarce. Why should successful without suffocating the decision-makers in ones leave existing organizations? It may go red tape? through many reorganizations. Typically, Parenthetically, I would note that I have major accounting and record-keeping errors felt for most of these past 20 years that the occur. There may be serious duplication Government, in its housing programs, has with existing organizations and programs. drawn the line too close to its traditional Knowledge developed at great effort in exist­ methods of operation. We would be far more ing organizations may have to be relearned. advanced in our attack on slums if more Another major assumption is that new in­ firms could have received larger profits stitutions can raise money more easily. The earned through greater efficiency. If pro­ costs of a new agency may not be obvious grams in the inner core had allowed profits for a considerable period. They may run on reflecting risks to the same degree as those borrowed money with a promise of future in the suburbs, the resulting allocation of payments. Annual appropriations may not national funds and efforts would have been be necessary. While they pay more for funds a better one for the national welfare. than the Government, Federal agencies bor­ Similarly, Congress’ recent decision to row at lower rates than private ones. Pay­ allow lenders to charge competitive interest ing such higher rates from governmental rates on FHA compared to other loans is funds may be considered worthwhile to clearly a plus factor. The ability to raise avoid congressional debates. On the whole, funds at less than market rates from institu­ new organizations don’t increase the funds tions has necessarily been a limited one. available. Depending on what form of Money is available on competitive terms. It guarantees or subsidies are used, they mainly disappears if competition cannot be met. reshuffle existing funds. This is also true in the hiring of managerial New institutions may be given powers not and entrepreneurial skills. Too many pro­ available to existing ones. Examples would grams still require nonprofit corporations. be: the right to make equity investments; the Those with the requisite skills are severely right to increase the ratio of risk to capital; limited. In contrast, the supply of experts tax exemptions; also subsidies for out-of-the- available in profitmaking organizations is ordinary handling of more difficult lending practically unlimited. cases. On the other hand, existing institu­ Loan guarantees. Among the many pro­ tions could be granted similar powers. posals advanced recently, careful attention Profits. A critical question which any new should be paid to the concept of blanket program must face is how to maintain pri­ loan insurance for loans of specified types vate initiative, speed, and efficiency calcula­ made by any approved lenders. Under such tions while protecting the integrity of public proposals the Government would specify funds. There is a trade-off in any joint gov- classes of borrowers and types and condi­ ernmental/private program between tradi­ tions of loans. It would also pre-certify lend­ tional Government accounting and review ers. It would not, however, attempt approval procedures and the most complete use of of individual loans. Guarantees to the lender private techniques and decision-making. would be available simply on the submission How can Government subsidies be kept out of a record of loans made. of the pockets of unscrupulous operators Questions as to whether any charges Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 845 should be made for such guarantees; the will indicate areas of success and failure amount of the guarantee (90, 95, or 100 and will also give an indication of the size per cent); and methods of spot-checking or of future programs needed to have a real auditing losses will also have to be decided. impact. Partial, as opposed to complete, guaran­ At the same time, other experimental tees foster economic efficiency through bet­ units are being established by States, local ter decision-making by lenders. Lenders groups, and cooperating financial institu­ will be willing to accept such risks, depend­ tions. The need both for funds and for edu­ ing on rates they are allowed to earn, the cation in borrowing and using money is so lack of red tape, and potential Government great that the maximum degree of competi­ aid to the borrowers. tion and experimentation among institutions Subsidies. Congress will have to deter­ should be welcomed. Again, the FHA ex­ mine how far to expand the concept of di­ perience may be pertinent. As the program rect subsidies to borrowers in and beyond developed, special mortgage banking institu­ the housing field. As this year’s housing tions developed, initially specializing only in legislation recognized, there are at least two the Government programs. These have since separate problems. One is the need to bridge broadened their approach and many are now the income gap between market interest active in the entire market spectra. rates and low incomes. The other is a pay­ Tn seeking new methods of channeling in­ ment for the high costs of loans which re­ vestment funds to poverty programs, con­ quire advice, guidance, information and sideration might be given to a program for general consulting, high initial effort, and simpler chartering of financial institutions larger-than-normal accounting and collec­ which would initially be limited in their ac­ tion charges. The FHA record is probably tivities primarily to loans guaranteed under pertinent to an estimate of the ability of a various Government programs. With port­ program to meet poverty-area needs with­ folios consisting mainly of guaranteed loans, out such specific subsidies. ghetto banks or credit unions could run with Given such aids made available from the a much higher than normal loan to capital Government, consideration must be given to ratio. Adjustments of this type for guaran­ the availability of local financial institutions teed loans have traditionally been author­ to make the loans. It would seem logical ized by Congress for lending institutions. that most lending of the type required could To summarize, private investment in the be done through existing institutions. Banks, inner city will take place in meaningful savings and loans, credit unions, all are amounts only when it becomes profitable. It available to meet programs that offer them is not profitable now because it is too risky normal profits. They have the requisite gen­ and too costly and because both lenders and eral management and lending skills and can potential borrowers lack the necessary skills. tool up to meet these areas’ specialized needs Federal programs are needed to reduce the providing it does not have to be done on a risks through guarantees and to pay part of charity or loss basis. The Small Business the costs through subsidies. How successful Administration and Office of Economic Op­ the newly developed programs will be must portunity (OEO) are operating programs be carefully measured. I would expect from in this sphere. 1 assume their experience prior experience a long learning process re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

846 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 quiring constant legislative aid. Existing fi­ tion and development of credit cards, so nancial markets have demonstrated remark­ that we may analyze their implications for able efficiency in seeking out profitable in­ the customer as well as the bank. vestments. They can be expected to respond to new incentives if they are provided on RECENT TRENDS terms and conditions that allow latitude to Let me first summarize the spread of bank investors in furnishing services and cutting credit-card and check-credit plans since costs. September 30, 1967, the date of most of Clearly, however, your task—and the the information contained in the study. In task facing all of us—in developing an insti­ the following 9 months, the number of com­ tutional structure which can channel funds mercial banks operating credit-card pro­ into necessary and desirable investments is grams more than doubled, increasing from not simple. Any problem which has defied 1 97 at the end of September to 416 on June solution for over 100 years—and that is 30, 1968.' The number of banks operating true of our cities’ poverty areas—won’t sud­ check-credit plans also increased substan­ denly succumb to yet another try. Still each tially, from 599 at the end of September to new effort does move us closer to our ulti­ 340 at the end of June. These figures are mate goal. Progress is being made. The task given in Table 1 at the end of my statement. we all must share is to further its momen­ Credit outstanding on bank credit-card tum. and check-credit plans amounted to a total of $1,599 million, on June 30, 1968, an Statement of Andrew F. Brimmer, member, increase of 43 per cent from September 30, Board of Governors of the Federal Reserve 1967. During this period, amounts out­ System, before the Subcommittee on Finan­ standing on credit-card plans increased 50 cial Institutions of the Committee on Bank­ per cent to $953 million while amounts out­ ing and Currency, U.S. Senate, October 9, standing on check-credit plans increased 1968. about one-third to $646 million. As I indicated in my statement before I appreciate the opportunity to appear be­ the House Committee on Banking and Cur­ fore this committee to explore with you some rency on November 8, 1967, the Federal of the questions raised by the entry of com­ Reserve System has developed a program mercial banks into the credit-card field. of current monthly reporting of credit ex­ In releasing the Federal Reserve System’s tended and repaid and the amount out­ study of bank credit-cards and check-credit standing under bank credit-card and check­ plans at the end of July 1968, the Board credit plans. Beginning with June 1968 commented on several problems with re­ figures, this new series has been included spect to credit-card practices, such as un­ as part of the Board’s monthly report on solicited mailings and letting each card­ consumer credit. The monthly figures for holder know his specific credit-card limit. January through August 1968 are shown The Board also indicated that steps were in Table 2 at the end of this statement. being taken in its examination procedures to assure reasonable practices by State mem­ 1 The number of banks that reported outstanding balances on credit-card programs. This excludes nearly ber banks. We arc continuing to follow care­ all of the several hundred agency banks which do not fully the experiences of banks in the promo­ hold credil-card receivables. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 847 The monthly reporting on this new series that do not arise in check credit. In partic­ has been covering about 95 per cent of the ular the mass mailing is a distinct feature total bank credit-card and check-credit op­ of credit cards. Another special problem eration, since it has not been possible to concerns liability for use of lost or stolen maintain complete monthly reporting be­ credit cards. While plastic identification cause of the lag in obtaining reports from cards are sometimes used in check-credit the additional banks continually entering plans, such a card is of no value without the field. The monthly series, however, ap­ the appropriate check forms; therefore, for pears to give a reasonably accurate measure check credit the stolen card as such is not of the changes between call reports. As soon a problem. Only in their common role of as we have had sufficient experience with providing prearranged lines of revolving this monthly reporting, it will be adjusted credit do check-credit and credit cards share to allow for the understatement as we do similar potential problems. with the other consumer credit series that we publish. MASS MAILING OF UNSOLICITED CREDIT CARDS Examination of the monthly data that have been collected for the first 8 months of Banks have found that the most effective this year shows a steady increase in the way of starting a new credit-card plan is amount of credit outstanding under both to mail a large number of unsolicited cards. credit-card and check-credit plans. In July This is necessary to resolve simultaneously and August credit-card receivables increased the problem of having enough stores signed nearly $70 million, or almost 8 per cent, and to the bank’s plan to make the card useful outstanding balances on check-credit plans to consumers and of having sufficient people increased $42 million or 7 per cent. To using the card to make forming the plan some extent the increase in the summer attractive to merchants. Reliance on the months may reflect vacation expenditures. alternative method of depending upon ap­ Much longer experience will be necessary, plication returns entails considerable delays however, before a precise seasonal pattern in reaching a profitable volume of business, can be determined. delays which may be unacceptable when trying to compete with other banks’ plans. PROBLEM AREAS There are, of course, risks involved in I will now discuss briefly some of the prob­ the mailing of a large number of credit lems connected with the issuance of credit cards, but these risks have been minimized cards that are of concern to all of us. The by safeguards instituted by the banks. Gen­ major problems seem to be: erally the rosters of potential cardholders have been based upon lists of the banks’ The inconvenience and potential liability to cus­ own customers: first of all demand deposi­ tomers involved in unsolicited mailing. tors; to a lesser extent savings depositors; The potential liability imposed on the card­ holder by the misuse of lost or stolen cards after and, still less frequently, borrowers. The acceptance. criteria used for screening such lists include The awareness of the customer with regard to requirenjents such as a $300 to $500 mini­ his credit limit under credit-card plans. mum average balance and no insufficient­ The over-all impact on consumers. funds checks for the previous 6 months in Credit cards present special problems the case of demand accounts or a $500 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

848 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 balance in the case of savings accounts. In also informs the bank of changes in ad­ some cases, banks run additional credit dresses. checks on some or all of their potential cardholders. While these internal lists are LIABILITY FOR FRAUD LOSSES the main source of names, some banks have One of the major objections to the un­ on occasion purchased outside lists from solicited mass mailing is that the card may such sources as credit bureaus and retailers. be lost or stolen, and the cardholder might Banks have had more problems with pur­ be threatened with liability for these losses chased lists than with internal lists. The care even though he never received the card. currently exercised by banks reflects this But the same problem could exist for re­ awareness of the shortcomings of outside quested cards and renewals of existing cards; mailing lists. therefore this is not entirely a problem of the mass mailing. There is also the question In addition, the Board of Governors, of liability for the wrongful use of a card after the completion of the System’s report stolen or lost after a person has accepted on Bank Credit-Card and Check-Credit or used it. Plans, has taken steps to encourage care in With regard to the first type of fraud— the selection of names for the mass mailing. where the card is lost or stolen before it is It has instructed its examiners to check “to accepted or received by the proper person make sure that banks realize the importance ■—we do not know of any bank that has of developing initial mailing lists from their attempted to collect from the intended re­ own records and carefully screening them cipient of the card. Within the last few days, before use.” The screening should be de­ we have talked to major banks in California, signed both to check creditworthiness and Illinois, Maryland, Missouri, New York, to minimize duplicate cards. and Virginia. These banks do not seek to Banks are modifying their practices to hold the cardholders responsible in these reduce the customer annoyance that accom­ cases—nor have any of them done so in panied earlier mailings of unsolicited cards. the past. Furthermore, it would appear While the number of customer complaints doubtful that the customer would be held to received by banks is usually a small per­ have any legal liability in these cases. Recent centage of the issue, according to bankers statutes in Illinois, Massachusetts, New and better business bureau officials con­ York, and Wisconsin specifically exempt tacted, the fact remains that some customers from liability the customer who has not do not like to receive unsolicited cards. To accepted or begun to use an unsolicited minimize this problem, many banks starting credit card. operations within the last year have sent In the case of cards stolen or lost after out so-called “pre-mailers.” These pre­ being accepted by the cardholder, the situa­ mailers tell the customer that a card is being tion is less clear. Most banks require their sent unless the customer indicates to the customers to inform them when the card bank that he wishes his name removed from is lost or stolen whereupon the bank accepts the list. Thus, the customer is able to refuse liability for any fraud losses. As for the a card before it is sent. The pre-mailer also liability of the cardholder prior to informing helps reduce the prospect of fraud by alert­ the bank, the situation is obscure. Some ing the customer to expect the card and banks seek to collect from the customer in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 849 these cases for losses. Others do not, even if CREDIT LIMITS the customer does not report the loss or Most banks follow the practice of telling theft of the card. Still other banks (and the cardholders of their credit limits. This con­ statutes of Illinois and Massachusetts) spe­ clusion is based upon both our knowledge of cify an upper limit on the dollar liability of specific banks’ practices and recent exam­ the customer in any event. Where the bank ination reports. As you know, the Board absorbs the fraud loss, it often does not re­ revised its examination procedures to cover veal that policy to its customers generally the question of whether or not customers for fear that they would be unduly careless are informed of their limits. in their handling of the card. The majority Since the change in examination pro­ of the banks that we have talked to follow cedures was instituted in mid-August, ex­ the practice of absorbing losses. This is aminers of the Federal Reserve System have often true even where the bank informs the examined 36 State member banks that have customer that his liability is limited to $50 credit-card or check-credit plans. Each of or $100. These announced limits are pri­ these banks had established specific credit marily designed to make the customer take limits under these plans and followed the care in the handling of the card and to practice of informing its credit-card cus­ stimulate prompt reporting of lost or stolen tomers of the credit limits. cards. Thus, actual policy is often much more lenient than announced policy. Never­ OVER-ALL IMPACT ON CONSUMERS theless, a minority of banks notify the There remain other questions as to how customer of his contractual liability for credit-card and check-credit plans affect losses between the time the card is lost and consumers, particularly as to the impact of the bank is informed and try to collect in the costs of such plans and any tendencies these cases. toward encouraging excessive indebtedness. The most common practice appears to be With respect to the question of whether or that of being somewhat ambiguous on the not credit cards increase the cost of goods cardholder’s liability once he has accepted to consumers, it is only possible to indicate a card and of absorbing all fraud losses aris­ the probable answer. Given the present ing from cards used without the cardholder’s minor size of credit-card plans compared consent. Even where the limits on liability with all kinds of consumer credit, it does are specified, the banks may not attempt to not seem that the expansion of credit-card recover fraud losses. Similarly where States, plans would have a noticeable effect on as in Illinois and Massachusetts, set upper general prices. Furthermore, it is not cer­ limits on cardholders’ liabilities, the banks tain that credit cards do raise prices. While often do not attempt to collect within the it is true that the retailer is faced with an legal limitations. extra cost in the form of the so-called mer­ In summary, banks generally appear to chant discount every time a credit-card follow the practice of absorbing all fraud purchase is made, it does not follow that losses before the customer accepts the card. there is a net increase in costs or that the In addition, a substantial proportion of purchase would have been made without a banks absorb losses after the cardholder card. To the extent credit cards replace accepts the card, although the cardholder is high-cost merchant credit plans, they re­ not usually informed of the policy. duce costs; and to the extent they attract Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

850 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 customers who wish to buy on credit, they to consumers during the 9 month period. generate increased sales which may offset any increases in costs. Thus the evidence, SUMMARY while not conclusive, suggests that credit On the question of credit cards lost or cards have not had-—and at present mag­ stolen before the customer receives and nitudes are not likely to have-—any notice­ accepts them by signing or using them, it able impact on general price levels. seems doubtful that the customer legally is There is also the question of whether liable for any losses, and banks do not try individual consumers might get deeply into to collect in such cases. The banks, how­ debt because of easy credit extended through ever, do not always make this clear to their these plans. Again it is difficult to point to customers, although there is no obvious a quantitative conclusion. The average line reason why they should not. The Board of credit extended under credit-card plans certainly would urge that banks advise their is in the neighborhood of $350. This is customers that they are not liable for losses not so high as to be a cause in itself of a from unauthorized use of cards they have customer incurring excessive indebtedness. not accepted. In addition, the credit standards aim at The situation is quite uncertain with re­ middle-income consumers who by and large spect to losses stemming from cards which can afford to contract debt within the appli­ have been lost by a customer who has ac­ cable limit. The same considerations apply cepted the card. The state of the law is even more strongly to check-credit plans. still unclear since court decisions depend Here the average line of credit is $1,000, upon how clearly the liability provisions are but the credit standards are even more spelled out to the customer, the amount stringent. The result is that such plans ex­ of care taken in verifying the credit-card perience much lower delinquency ratios— transaction, and so on. In a few cases, as less than half that of credit-card accounts mentioned before, States have adopted leg­ according to our credit-card report. islation dealing with the matter of liability, Furthermore, the general trends in the but banks may be reluctant to enforce use of consumer credit do not indicate the cardholders’ liabilities under such statutes. existence of a serious problem. Although The banks’ policies vary: some apply strictly the level of consumer credit has been rising the clauses spelling out liability; others spec­ recently, much of this has been a reflection ify liability policies but in practice rarely of the over-all expansion of the economy or never hold the customer liable; still and only a fraction can be attributed to other banks follow policies which fall some­ credit-card and check-credit plans. The in­ where in between. crease in credit-card and check-credit out­ At a minimum, telling the customer his standings between September 30, 1967, and potential liability appears to be the best June 30, 1968, was $483 million. In the policy. I would like to submit for the record same period, total consumer credit jumped an example of one of the best methods banks by $5,581 million—of which the instalment have devised to do this. In forms sent to component was up $4,324 million. There­ customers along with its card, Wells Fargo fore, the credit-card and the check-credit Bank of San Francisco clearly states that plans made up less than 12 per cent of the cards lost or stolen before receipt are not increase in total instalment credit extended the customer’s but the bank’s responsibility. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 851 Just as important it specifies the liability of tomer, I believe that the liability imposed the customer for fraud losses should the on the customer should be small, inasmuch card be stolen or lost after the customer as the issuers are better able to bear the has accepted it. The bank sets a $50 ceiling losses and to control them. Some small on losses before notification that the card is liability on the part of the customer is lost, with no liability after notice. This is probably desirable to encourage responsible a responsible approach to this problem, and handling of cards and prompt reporting I offer it as an example of the steps banks when cards are lost or stolen. Finally, the are taking to meet their responsibilities in customer should be clearly informed of his informing their customers. liability. As I have indicated, the actual dimen­ In order to achieve this result, some sions of the problem of people being held legislation may be desirable since not all responsible for losses that may arise when issuers will follow such a policy unless it is their credit card is stolen or lost appear required by law. The legislation might be small. We have no figures on the dollar at either the State or Federal level. And amount collected from cardholders, but it clearly, to be effective, such legislation would not appear to be substantial for would have to apply to travel and enter­ several reasons. The biggest dollar losses tainment cards, gasoline company cards, would arise from cards stolen before cus­ airline cards, and other credit cards as well tomers ever receive the cards. We know the as to bank credit cards. Credit cards issued banks absorb these losses. Next, we also by banks account for less than 10 per cent know that the majority of banks do not in of the total amount of credit outstanding practice try to collect from customers for under all types of credit cards. losses incurred before receiving notifica­ With respect to other aspects of credit­ tion. Futhermore, these banks also account card operations, I do not see the need for for the majority of dollar outstandings. additional legislation at this time. There remain those banks which try to col­ Fortunately, the consumer not only has lect in cases of obvious negligence by the a right to look to legislators and supervisors cardholder and a still smaller number of to protect his interests, but he also can those which try to collect as a regular prac­ count on the self-interest of those who seek tice. his patronage. It is good business for issuers Even though the liability for misuse of of credit cards to do what they can to make lost or stolen credit cards has been small, sure that people who hold their cards look there is an important matter of principle upon them as a benefit and not a burden. as to the extent to which the consumer In the particular sector of the business in should bear this burden. I believe that the which we have supervisory responsibilities, entire burden of loss arising from the mis­ the Board has found that banks not only use of lost or stolen credit cards before are ready to cooperate with us in comply­ they are received or accepted by the cus­ ing with sound standards of operation, but tomer should be borne by the issuer. After are, themselves, seeking new solutions to acceptance and use of the card by the cus­ old problems. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

852 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 TABLE 1 TABLE 2 CREDIT CARDS AND RELATED PLANS OF BANK CREDIT-CARD AND RELATED PLANS ' COMMERCIAL BANKS (In millions of dollars) (Amounts in millions of dollars) Outstanding, Extended Repaid Sept. 30, 1967 1 Dec. 31, 1967 2 June 30, 1968 2 end of month during month during month Month Type of plan N h b u a e v m r ­ ­ Am ou o t u ­ nt N h b u a e v m r ­ ­ Am ou o t u ­ nt N h b u a e v m r ­ ­ Am ou o t u ­ nt C p c r l a e a r d n d i s t­ C c p h r l e a e d n c i s k t ­ C p c r l a e a r d n d i s t­ C c p h r l e a e d n c i s k t - C p c r l a a e r n d d s i t­ C c p h r l e a e d n c i s k t ing standing ing standing ing standing plans plans plans 1968 Jan....... 815 531 147 85 139 71 Credit cards.... 197 633 385 828 416 953 F M e a b r . . . . . . . . 8 8 1 2 7 2 5 5 4 4 9 3 1 1 2 2 5 0 7 7 8 6 1 1 1 2 8 0 7 6 0 6 Ch r e e c v k o l c v r i e n d g i c t r a e n d d it 599 483 729 522 840 646 A M p a r y . . . . . . . 8 8 5 7 9 8 5 5 7 8 0 6 1 1 5 5 8 2 9 95 7 1 12 3 1 3 7 81 4 June... 914 600 155 93 119 79 July.... 945 622 172 103 141 81 1 Federal Reserve System report, Bank Credit-Card and Check­ Aug.. . . 983 642 176 103 138 83 Credit Plans, July 1968, 2 Federal Deposit Insurance Corporation, Report of Call. 1 The Federal Reserve monthly series covers about 95 per cent of the total bank credit and check-credit operations, 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 May 28 were published in the Bulletins for April, pages 372-81; May, pages 431-36; June, pages 482-96; July, pages 628-37; Au­ gust, pages 671-80; and September, pages 749-56. The records for the meetings held on June 18, and July 16, 1968, follow: 853 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

854 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 MEETING HELD ON JUNE 18, 1968 Authority to effect transactions in System Account. Reports at this meeting indicated that the continued rapid ad­ vance in over-all economic activity was being accompanied by persisting inflationary pressures. It appeared likely that Congress would act favorably within a few days on legislation providing for a 10 per cent income tax surcharge and a $6 billion reduc­ tion in expenditures from Budget estimates for the coming fiscal year. Such legislation was expected to contribute to a consider­ able moderation of the rate of advance in aggregate demands. Staff estimates suggested that both real GNP and average prices—as measured by the “GNP deflator”-—were continuing to increase at rapid rates in the second quarter. According to the estimates, however, business inventory accumulation would be considerably larger than in the first quarter and growth in final sales would be smaller. In particular, consumer expenditures were expected to rise substantially but at a pace well below the extraordinary advance of the first quarter; and according to a recent Commerce-SEC survey of business spending plans, out­ lays on new plant and equipment would change little in the second quarter after increasing sharply in the first. It also ap­ peared that outlays for residential construction would rise moderately further and that defense spending would advance at about the rapid first-quarter rate. Staff estimates for the third quarter suggested that growth in real GNP would slow sharply if the pending fiscal legislation were enacted. The rate of increase in disposable income was expected to slacken considerably—as a result of both the income tax surcharge and slow growth in employment—and a further slowing of growth in consumer expenditures appeared likely, despite an anticipated decline in the rate of personal saving. Prospects for the third quarter also included a moderate decline in residential construction outlays, a leveling off of the advance in defense expenditures, and little further change in the rale of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 855 inventory accumulation after a large second-quarter rise. How­ ever, the Commerce-SEC survey suggested that outlays on plant and equipment would increase somewhat in the third quarter. The lower over-all rate of economic growth in prospect seemed unlikely to have an appreciable effect immediately on advances in wage and other costs, and average prices in the private econ­ omy were expected to rise almost as rapidly in the third quarter as in the first half of the year. In May the unemployment rate remained at 3.5 per cent. Nonfarm employment was unchanged from April, as an increase in the number of workers on strike offset employment gains else­ where. Average hourly earnings continued to rise rapidly. In­ dustrial production was estimated to have increased to a new high, and according to the advance report, retail sales rose moderately from an April level that had been held down by civil disorders in many cities. Preliminary estimates indicated that average wholesale prices of industrial goods declined somewhat in May, primarily be­ cause of further sharp reductions for copper and related prod­ ucts following settlement of the copper strike; average prices of other industrial commodities continued to rise. Prices of foods and foodstuffs increased considerably, and the total wholesale price index edged up further. In April the consumer price index continued upward at about the average rate of other recent months and was 4 per cent above a year ealier. With respect to the U.S. balance of payments, preliminary data for May suggested that the deficit on the liquidity basis diminished sharply from its high April level, in part because of the favorable effects of various special official transactions. The merchandise trade surplus was expected to increase in coming months from its recent low level, but net outflows of U.S. capital also were expected to rise. Such outflows had been unusually small in the early months of the year, following the introduction of the new restaint program on January 1. On the official settlements basis, a payments surplus was now Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

856 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 indicated for May and possibly for the second quarter as a whole, primarily as a result of an exceptionally large rise in the liabilities of U.S. banks to their branches abroad. The recent massive inflow of foreign liquid funds apparently reflected both increased demands for funds by domestic banks and large addi­ tions to the supply of Euro-dollars as a result of movements out of sterling and French francs. It was thought likely that the inflow would subside soon. In foreign exchange markets, the position of sterling had improved somewhat in recent weeks, but the French franc had remained under severe pressure. The price of gold in the private London market had continued to fluctuate in a range of about $41 to $42 per ounce. System open market operations since the preceding meeting of the Committee had been directed at maintaining firm condi­ tions in the money market. Early in the period reserves were absorbed temporarily, by means of matched sale-purchase agree­ ments, in order to counter easing tendencies. Late in the period, however, when tendencies toward undue tightness emerged, reserves were supplied by purchases of Treasury bills from foreign accounts and through repurchase agreements with non­ bank dealers at a 5% per cent interest rate. For the period as a whole, effective rates on Federal funds were usually in a range of 6 to 614 per cent but occasionally were below 6 per cent. Member bank borrowings averaged about $730 million in the 3 weeks ending June 12, little changed from the preceding 4 weeks, but average net borrowed reserves increased to about $445 million from $375 million in the earlier period. Interest rates on most types of market securities had declined substantially on balance since the preceding meeting of the Com­ mittee, primarily because of growing expectations that fiscal restraint legislation would be enacted soon. Yield reductions were more marked on Treasury bonds than on corporate and municipal bonds, for which the calendar of new offerings con­ tinued heavy. The market rate on 3-month Treasury bills, at 5.58 per cent on the day before this meeting, was 9 basis points Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 857 below its level 3 weeks earlier, and rates on longer-term bills were down by 20 to 30 basis points. Preliminary data for May suggested an increase in net inflows of savings funds to mutual savings banks and savings and loan associations. But with demands for mortgage funds continuing strong, and with uncertainties increasing about prospects for savings flows at thrift institutions around the midyear interestand-dividend-crediting period, conditions in mortgage markets remained fairly tight. Contract interest rates on conventional new-home mortgages, which had been at a postwar high in April, rose sharply further in May. At commercial banks, demands for business loans strength­ ened after a mid-April to mid-May lull. There was some im­ provement in net flows of time and savings deposits in the latter part of May, but for the month as a whole such deposits grew at an annual rate of only about 3 per cent, roughly the same as in April and less than half the first-quarter pace. With U.S. Government deposits declining further, private demand deposits and the money supply expanded considerably; growth in the money supply was now estimated at an annual rate of 11 per cent in May, compared with 6.5 per cent in April. Bank credit, as measured by the bank credit proxy—daily-average member bank deposits—expanded at an annual rate of 1.5 per cent in May, after declining at a 4.5 per cent rate in April. Allowance for changes in the daily average of U.S. bank liabili­ ties to foreign branches, which are among the nondeposit liabili­ ties of banks omitted in calculating the credit proxy, would have served to reduce the decline in April by about 1 percentage point and to have increased the rise in May by about 3.5 per­ centage points. New projections suggested that if prevailing money market conditions were maintained the bank credit proxy would rise at an annual rate of 3 to 6 per cent in June and somewhat more slowly in July; and that if money market conditions were less firm, growth in July would continue at about the rate projected for June. Allowance for a further increase in average liabilities Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

858 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 to foreign branches, expected to occur in June, would have added about 3 percentage points to the limits of the range of growth projected for that month. The projections for July as­ sumed that the Treasury would raise a substantial amount of new cash—about $4 billion—early in the month through a sale of tax-anticipation bills. Further declines in the average level of Government desposits were anticipated in both June and July, and were expected to contribute to continued vigorous expan­ sion of the money supply. The Committee’s policy discussion at this meeting was con­ ducted against the background of the widespread expectation that Congress probably would act affirmatively within a few days on the pending fiscal legislation. It was thought likely that such action would be followed by further declines in Treasury bill rates and other short-term market interest rates. The possibility was recognized, however, that short-term rates might subse­ quently come under renewed upward pressure, partly as a consequence of the sizable cash financing the Treasury was ex­ pected to undertake in early July. The Committee agreed that open market operations should be directed at maintaining firm conditions in the money market in the period before Congress acted on the pending legislation, and at countering any tendencies toward disorder that might result'if such action were negative or delayed. As to the appro­ priate course if fiscal legislation were enacted soon, there was some sentiment for seeking less firm money market conditions on the grounds that over-all economic retraint otherwise was likely to prove excessive. At the same time, however, concern was expressed in the course of the discussion about the risk that premature monetary easing would offset the effects of fiscal restraint. The Committee concluded that if Congress acted affirmatively on the pending fiscal legislation open market operations should seek to accommodate any resulting declines in short-term in­ terest rates and to cushion any upward pressures on such rates Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 859 that might emerge subsequently. The proviso was added that this course should be followed only so long as bank credit growth in June, and also in July, did not appear to be develop­ ing at a rate above the range projected for June. 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. Enactment of fiscal restraint measures now under consideration in Congress, however, would be expected to contribute to a considerable moderation of the rate of advance in aggregate demands. Growth in bank credit and time and savings deposits has been relatively small on average in recent months, although the money supply has ex­ panded considerably as U.S. Government deposits have declined. Both short- and long-term interest rates have receded from the advanced levels reached in May, mainly in reaction to enhanced expectations of fiscal restraint. 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 condi­ tions conducive to resistance of inflationary pressures and attainment of reasonable equilibrium in the country’s balance of payments, while taking account of the potential impact of developments with respect to fiscal legislation. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to main­ taining generally firm but orderly conditions in the money market; pro­ vided, however, that if the proposed fiscal legislation is enacted opera­ tions shall accommodate tendencies for short-term interest rates to decline in connection with such affirmative congressional action on the pending fiscal legislation so long as bank credit expansion does not exceed current projections. Votes for this action: Messrs. Martin, Brimmer, Daane, Galusha, Hickman, Kimbrel, Maisel, Mit­ chell, Robertson, Sherrill, Bopp, and Treiber. Votes against this action: None. Absent and not voting: Messrs. Hayes and Ellis. (Messrs. Treiber and Bopp voted as their alter­ nates.) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

860 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 MEETING HELD ON JULY 16, 1968 1. Authority to effect transactions in System Account. Staff estimates for the second quarter continued to indicate sharp further advances in real GNP and in average prices as measured by the “GNP deflator.” It now appeared, however, that growth in consumer expenditures had been smaller than expected earlier and that business fixed investment had declined somewhat. Much of the increase in real GNP was a consequence of a marked rise in the rate of inventory accumulation, reflecting in part a build-up of stocks of steel as a precaution against a possible strike when current wage contracts expired on July 31. Industrial production was estimated to have increased some­ what further in June and retail sales, according to the advance estimate, were unchanged. Although the labor market remained generally firm, growth of nonfarm employment had slowed in recent months. The unemployment rate rose from 3.5 per cent in May to 3.8 per cent in June, when young workers entered the labor force in larger numbers than usual. The consumer price index advanced again in May and was about 4 per cent above a year earlier. Average hourly earnings had continued to rise at a substantial rate in recent months, but increases in consumer prices had held down gains in real earnings and had contributed to demands for higher wages. At the whole­ sale level, average prices of industrial goods rose again in June after declining in May. Although increases had become less wide­ spread recently, it appeared likely that industrial prices would re­ main under upward pressure in coming months. In late June legislation was enacted that provided for a 10 per cent surcharge on income taxes, retroactive to April 1, 1968, for individuals and to January 1, 1968, for corporations. The legisla­ tion also provided for a $6 billion reduction from the January Budget estimate for Federal expenditures in the fiscal year 1969. However, the exemption from cuts of certain categories of ex­ penditures together with upward revisions in estimates of defense Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 861 spending suggested that the net reduction was likely to be less than $6 billion. Staff projections suggested that the pace of advance in aggre­ gate demands would moderate considerably in the third quarter, partly as a result of this legislation. It was expected that consumer expenditures would advance at only about the moderate pace of the second quarter—-with a decline in the rate of personal saving roughly offsetting the combined effects on disposable income of the income tax surcharge and smaller employment gains; that the rise in Federal spending would slow; and that residential construc­ tion outlays would turn down. On the other hand, some increase in business fixed investment outlays appeared likely. A signifi­ cant reduction was now anticipated in the rate of inventory ac­ cumulation; businesses were expected to shift from accumulation to decumulation of steel stocks after the strike deadline and to adjust stocks of consumer goods in line with the recently smaller gains in sales. In foreign exchange markets, the French franc continued under heavy pressure in late June and early July. The Bank of France increased its discount rate from 3’/i to 5 per cent effective July 3, and on July 10 announced that it had arranged for $1.3 billion in new international credit facilities. The exchange rate for sterling reached a new low in late June, but subsequently strengthened markedly as a result of two developments: (1) an announcement on July 8 that 12 central banks and the Bank for International Settlements had given firm assurances of their willingness to par­ ticipate in new arrangements to offset fluctuations in the sterling balances of countries in the sterling area; and (2) the publication on July 11 of figures indicating that British imports had declined significantly in June for the first time since devaluation of the pound. The price of gold in the private London market recently had fallen from around $41 to around $39 per ounce on rumors of an arrangement designed to encourage sales of gold in the market by South Africa. Tentative estimates suggested that the deficit in the U.S. bal- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

862 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 ance of payments on the liquidity basis had declined markedly in the second quarter. All of the improvement, however, appeared to reflect special official transactions; except for these transactions, the deficit would have been large. The merchandise trade account was in deficit in May for the second time in 3 months. On the official settlements basis the payments balance was estimated to have been in substantial surplus in the second quarter, as a result of a record increase in liabilities of U.S. banks to foreign branches. On July 2 the Treasury auctioned $4 billion of tax-anticipation bills maturing in March and April 1969, for which commercial banks were permitted to make payment in full by credits to tax and loan accounts. The Treasury was expected to announce at the end of July the terms on which it would refund the $8.6 billion of securities maturing in mid-August, of which $3.6 billion were held by the public. Current estimates suggested that the Treasury also would have to raise a substantial amount of new cash in August. Conditions in securities markets had eased somewhat in re­ action to the enactment of fiscal-restraint legislation, and yields on Government securities of all maturities had declined moderately on balance in the period since the preceding meeting of the Com­ mittee. The market rate on 3-month Treasury bills initially fell sharply—from 5.60 per cent on June 18 to 5.20 per cent on June 21. The abruptness of this decline was related to heavy reinvest­ ment demands by holders of maturing tax-anticipation bills and to substantial purchase of bills by the System on June 19 to offset the effects on bank reserves of large-scale international trans­ actions. Subsequently the 3-month bill rate came under upward pressure partly as a result of the Treasury’s offering of tax bills in early July, and on the day before this meeting it was 5.42 per cent, 18 basis points below its level 4 weeks earlier. Rates on other short-term instruments showed smaller net declines over the interval, and some—such as those on commercial paper—re­ mained at their mid-June levels. Yields on long-term corporate and municipal bonds, for which Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 863 the volume of new issues continued sizable in June and July, were little changed over most of the period since the preceding meeting of the Committee. Conditions in private bond markets had be­ come more buoyant in recent days, however, following the good reception accorded a large corporate issue. Expectations of a near-term relaxation in monetary conditions contributed to the improvement in bond markets, as did the announcements of new international support for sterling and the French franc. System open market operations since the preceding meeting of the Committee had been directed at maintaining firm conditions in the money market, while accommodating tendencies for short­ term interest rates to decline following congressional action on fiscal legislation. The interest rate on System repurchase agree­ ments with nonbank dealers was reduced to 5% per cent on July 5 from the level of 5% per cent that had been employed since late April. The effective rate on Federal funds, which was mainly in a 614 to 614 per cent range early in the interval, subsequently fluctuated primarly in a 6 to 614 per cent range. Member bank borrowings averaged $595 million and net borrowed reserves $260 million in the 4 weeks ending July 10, compared with aver­ ages of $720 million and $410 million, respectively, in the pre­ ceding 4 weeks. Conditions in markets for residential mortgages continued to tighten through mid-June but appeared to have stabilized there­ after. Preliminary indications suggested that the savings flow ex­ perience of nonbank depositary institutions during the interestand-dividend-crediting period around the end of June was better than many industry observers had expected. Growth in time and saving deposits at commercial banks in June remained at the low annual rate of about 3 per cent that had prevailed in the two preceding months. However, the net reduc­ tion during the course of the month in the volume of largedenomination CD’s outstanding was considerably less than normal for the season, and in late June and early July the out­ standing volume was increasing. By the time of this meeting most Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

864 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 banks issuing such CD’s had reduced their offering rates for cer­ tificates of longer maturity to levels below the Regulation Q ceil­ ings. Private demand deposits and the money supply continued to expand rapidly in June, although not so rapidly as in May, and U.S. Government deposits increased slightly after declining stead­ ily since February. In the second quarter as a whole, during which Government deposits fell substantially on balance, the money supply grew at an annual rate of about 8.5 per cent, compared with about 4.5 per cent in the first quarter. Commercial bank credit, as measured by the bank credit proxy —daily-average member bank deposits—increased at an annual rate of 6 per cent in June after rising relatively little in May and declining in April. For the 3 months together, the proxy series increased at an annual rate of 1 per cent, compared with a rate of about 7 per cent in the first quarter. Allowance for changes in the daily average of U.S. bank liabilities to foreign branches, which are among the nondeposit liabilities omitted in calculating the credit proxy, would have served to increase the growth rates by about 2.5 percentage points in the second quarter and 0.5 of a percentage point in the first. It was expected that the pattern of bank credit growth in July and August would be strongly influenced by Treasury financing operations and by business borrowing to finance additional tax payments required under the terms of the new legislation. Staff projections suggested that if prevailing money market conditions were maintained the bank credit proxy would grow at annual rates in the ranges of 1 to 4 per cent in July, 10 to 12 per cent in August, and 6 to 8 per cent in the 2 months taken together. In an alternative projection, in which somewhat easier money market conditions were assumed, the annual rate of increase in the bank credit proxy in July and August together was estimated in a range of 7 to 9 per cent. These projections assumed that the Treasury would raise a total of about $7.5 billion of new cash in the 2 months, including the $4 billion already raised in July through the sale of tax-anticipation bills. Allowance for a further increase Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 865 in average liabilities to foreign branches, expected to occur in July, would have added about 1 percentage point to the limits of the ranges of growth projected for July and August together. It appeared likely that private demand deposits and the money supply would continue to expand at a substantial rate on average in July, but to slow sharply in the latter part of the month and to change little on average in August, a period in which Government deposits were expected to rise substantially on balance. The out­ look also favored further rapid growth in large-denomination CD’s outstanding, at least in July. In the course of the Committee’s discussion a number of mem­ bers indicated that they were inclined to maintain prevailing money market conditions for the time being, while awaiting evi­ dence of the probable effectiveness of the recently enacted fiscal restraint measures in containing inflationary pressures and im­ proving the underlying position of the balance of payments, Other members, while not advocating a substantially easier monetary policy at present, thought that the prospective effects of the new fiscal legislation warranted seeking somewhat less firm money market conditions to the extent such a course was consistent with the forthcoming Treasury financing. After considering these alternatives, the Committee agreed upon an intermediate course. Specifically, it was decided that open market operations should be directed at accommodating easing tendencies in money market conditions in the period ahead if such tendencies arose from market forces; and at cushioning upward pressures on interest rates if they should develop. It also was agreed that operations should be modified, to the extent per­ mitted by the Treasury financing, if bank credit appeared to be deviating significantly from current projections. The Committee also discussed the appropriate interest rate for System repurchase agreements (RP’s) with nonbank dealers. The members noted that market participants had attached some degree of policy significance to recent changes in the RP rate and to the fact that the rate employed most lately was still Vs of a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

866 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 percentage point above the discount rate. While the views of members differed regarding the desirability of regular use of a flexible RP rate as an instrument for influencing money market conditions, the Committee thought that under existing circum­ stances it would be appropriate to employ a 51^ per cent rate beginning with the next occasion on which the Account Manage­ ment made repurchase agreements. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that over-all economic activity continued to expand rapidly in the second quarter, with inventory accumulation accelerating while the rise in capital outlays and in consumer spending slowed. The new fiscal restraint measures are expected to contribute to a considerable moderation of the rate of advance in aggregate demands. Industrial prices have been increasing less rapidly than earlier but consumer prices have continued to rise substantially and wage pressures remain strong. Growth in bank credit and time and savings deposits has been moderate on average in recent months; growth in the money supply has been larger as U.S. Government deposits have been reduced. Conditions in money and capital markets have eased somewhat, mainly in response to the increase in fiscal restraint. Although there recently have been large inflows of foreign capital, the U.S. foreign trade balance and underlying payments position continue to be matters of serious concern. In this situation, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to sustain­ able economic growth, continued resistance to inflationary pressures, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, while taking account of forthcoming Treasury financing activity, System open market operations until the next meeting of the Committee shall be conducted with a view to accommodating the tendency toward somewhat less firm conditions in the money market that has developed since the preceding meeting of the Committee; provided, however, that opera­ tions shall be modified, to the extent permitted by Treasury financing, if bank credit appears to be deviating significantly from current projections. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, Sherrill, and Bopp. Votes against this action: None. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 867 (Mr. Bopp voted as an alternate member in place of Mr. Ellis, whose membership on the Committee had terminated on June 30, 1968, the effective date of his resignation as President of the Federal Reserve Bank of Boston.) 2. Amendments to authorization for System foreign currency operations. The Committee ratified an action taken by members on July 2, 1968, effective on that date, to increase the System’s swap ar­ rangement with the Bank of France from $100 million to $700 million equivalent, and to make the corresponding amendment to paragraph 2 of the authorization for System foreign currency operations. As a result of this action, paragraph 2 read as follows: The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements (“swap” ar­ rangements) for System Open Market Account for periods up to a maxi­ mum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, relations with foreign banks and bankers, and with the approval of the Committee to renew such arrange­ ments on maturity: Amount of arrangement (millions of Foreign bank dollars equivalent) Austrian National Bank 100 National Bank of Belgium 225 Bank of Canada 1,000 National Bank of Denmark 100 Bank of England 2,000 Bank of France 700 German Federal Bank 1,000 Bank of Italy 750 Bank of Japan 1,000 Bank of Mexico 130 Netherlands Bank 400 Bank of Norway 100 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

868 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 Amount of arrangement (millions of Foreign bank dollars equivalent) Bank of Sweden 250 Swiss National Bank 600 Bank for International Settlements: System drawings in Swiss francs 600 System drawings in authorized European currencies other than Swiss francs 1,000 Votes for ratification of this action: Messrs. Martin, Hayes, Brimmer, Daane, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Roberston, Sherrill, and Bopp. Votes against ratification of this action: None. (Mr. Bopp voted as an alternate member in place of Mr. Ellis, whose membership on the Committee had terminated on June 30, 1968.) Although the arrangement between the Bank of France and the Federal Reserve had been the first negotiated when the Sys­ tem’s swap network was established in 1962, it had remained at $100 million since early 1963 while various other lines in the net­ work had been enlarged from time to time. The increase in this arrangement served to bring the relative sizes of the arrangements in the System’s swap network into better balance. It formed part of a package of credit facilities provided to the Bank of France at this time by a number of central banks to help deal with de­ stabilizing exchange market pressures. The Committee also amended the foreign currency authoriza­ tion in another respect at this meeting. Under paragraph 1C(1) of the authorization, as it had been amended on November 14, 1967, the Federal Reserve Bank of New York was authorized to have outstanding forward commitments to deliver foreign cur­ rencies to the Stabilization Fund of up to $350 million equivalent. The limit had been increased to that level (from a previous figure Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 869 of $200 million) in November to facilitate the “warehousing” by the System Account of Stabilization Fund holdings of sterling if the resources of the Stabilization Fund proved inadequate to meet all the demands upon them from time to time in the future. At this meeting the Committee approved an increase in the limit in question up to an amount not exceeding $1,050 million equivalent, on the understandings that (1) the specific amount would be determined by Chairman Martin (or in his absence, Mr. Robertson, Vice Chairman of the Board of Governors) and (2) that the action would become effective upon a determination by Chairman Martin (or in his absence, Mr. Robertson) that it was in the national interest. Votes for this action: Messrs. Martin, Hayes, Brimmer, Daane, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, Sherrill, and Bopp. Votes against this action: None. (Mr. Bopp voted as an alternate member in place of Mr. Ellis, whose membership on the Committee had terminated on June 30, 1968.) This action was taken against the background of discussions at meetings in Basle, Switzerland, on July 6-8, 1968, and prior dis­ cussions between representatives of the U.S. Treasury and the Federal Reserve. At the Basle meetings agreement in principle had been reached among representatives of the Bank for International Settlements, the Bank of England, and 12 other central banks including the Federal Reserve regarding new arrangements for offsetting fluctuations in sterling balances held by countries in the overseas sterling area (OSA). In general, the agreement pro­ vided for the extension of a medium-term facility of $2 billion equivalent to the Bank of England by the BIS, with backing pro­ vided by the participating central banks, acting where appropriate on behalf of their Governments. It was understood that the agree­ ment was contingent on the satisfactory completion of negotia- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

870 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 tions by the British authorities with the OSA countries concerning the management by the latter of their sterling reserves. In the System’s preliminary discussions with the U.S. Treasury it had been agreed that the Treasury should participate as prin­ cipal in the arrangement, with the dollars to be made available on a swap basis against sterling by the Stabilization Fund. It was also agreed that if the resources of the Stabilization Fund should prove insufficient from time to time to meet these and other commit­ ments, the Federal Reserve would undertake to warehouse tem­ porarily for the Stabilization Fund necessary portions of the sterling acquired by the latter. It was reported at this meeting of the Committee that the U.S. share in the arrangement would be in the neighborhood of $600 million to $700 million. After approving System participation in the arrangement in the manner described, the Committee noted that the agreement was contingent on certain negotiations by the British authorities and that the specific size of the U.S. share had not yet been determined. Accordingly, it was decided that both the effective date of the amendment to paragraph 1C(1) of the authorization and the new figure for maximum forward commit­ ments to the Stabilization Fund to be established by that amend­ ment (within the limit set by today’s action) should be subject to determination by Chairman Martin, or in his absence, Mr. Robertson. Subsequently, agreement was reached on the new arrangement at a meeting in Basle on September 9, 1968, with the U.S. share established at $650 million, and the arrangement went into force on September 23, 1968. On September 24, Chairman Martin determined that an increase in the limit on forward commitments to deliver foreign currencies to the Stabilization Fund of $650 million equivalent, to $1 billion, was in the national interest. Accordingly, effective September 24, 1968, paragraph 1C(1) of the authorization for System foreign currency operations was amended to read as follows: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 871 1. The Federal Open Market Committee authorizes and directs the Fed­ eral Reserve Bank of New York, for System Open Market Account, to the extent necessary to carry out the Committee’s foreign currency directive: C. To have outstanding forward commitments undertaken under para­ graph A above to deliver foreign currencies, up to the following limits: (1 ) Commitments to deliver foreign currencies to the Stabilization Fund, up to $1 billion equivalent; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material INTEREST ON DEPOSITS; Sec. 2. (a) The first sentence of section 19(j) of the RESERVES OF MEMBER BANKS; Federal Reserve Act (12 U.S.C. 371b) is amended by OPEN MARKET OPERATIONS; changing “limit by regulation” to read “prescribe rules RESERVE BANK ADVANCES governing the payment and advertisement of interest on deposits, including limitations on”. By Act approved September 21, 1968 (Public (b) The second sentence of section 18(g) of the Law 90-505) Congress extended until September Federal Deposit Insurance Act (12 U.S.C. 1828(g)) 22, 1969, the flexible authority of the Board, the is amended by changing “limit by regulation” to read “prescribe rules governing the payment and advertise­ Federal Deposit Insurance Corporation, and the ment of interest on deposits, including limitations on”. Federal Home Loan Bank Board in regulating the (c) The first sentence of section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is amended maximum rates of interest or dividends payable by by changing “limit by regulation” to read “prescribe insured banks and savings and loan associations on rules governing the payment and advertisement of deposit or share accounts. The Act makes perma­ interest or dividends on deposits, shares, or withdraw­ able accounts, including limitations on”. nent the authority of the Federal Reserve Banks to Sec. 3. (a) The first sentence of the eighth full para­ purchase in the open market direct or fully guaran­ graph of section 13 of the Federal Reserve Act (12 teed obligations of Federal agencies and the authori­ U.S.C. 347) is amended by inserting “, or secured by such obligations as are eligible for purchase under ty of the Board to require member banks to main­ section 14(b) of this Act” immediately before the tain a reserve ratio for time deposits of not less period at the end thereof. than 3 and not more than 10 per cent. The Act also (b) The first sentence of the last full paragraph of such section (12 U.S.C. 347c) is amended by inserting grants (1) the supervisory agencies authority to pre­ “or by any obligation which is a direct obligation of, or scribe regulations governing all aspects of the pay­ fully guaranteed as to principal and interest by, any agency of the United States” immediately before the ment of interest on deposits, including advertising, period at the end thereof. and (2) the Reserve Banks authority to make ad­ vances (a) to member banks on the security of any TIME DEPOSITS OF FOREIGN MONETARY obligations eligible for Reserve Bank purchase (in­ AUTHORITIES cluding Federal agency issues), and (b) to any The Board of Governors, effective October 15, person on the security of obligations of Federal 1968, amended Regulation Q, “Payment of Inter­ agencies (previously, the security was limited to est on Deposits,” to clarify the authority of mem­ direct obligations of the United States). ber banks to pay any rate of interest on time de­ The text of the relevant portions of the Act is posits of foreign monetary authorities, with maturi­ as follows: ties of not more than two years, and to permit, AN ACT under certain conditions, a member bank to pay the contract rate on a certificate of deposit issued to To extend for one year the authority to limit the rates of interest or dividends payable on time and such an organization throughout the time it is held savings deposits and accounts, and for other purposes. by such an organization, irrespective of the nature Be il enacted by the Senate and House of Represen­ of the holder at maturity. The text of the amend­ tatives of the United States of America in Congress as­ ment reads as follows: sembled, Section 1. Section 7 of the Act of September 21, AMENDMENT TO REGULATION Q 1966 (Public Law 89-597; 80 Stat. 823) is amended to read: Effective October 15, 1968, section 217.3(a) is “Sec. 7. Effective September 22, 1969— “(1) so much of section 19(j) of the Federal amended and section 217.3(g) is added to read as Reserve Act (12 U.S.C. 371b) as precedes the follows: third sentence thereof is amended to read as it would without the amendment made by section Section 217.3—Maximum Rate of Interest on 2(c) of this Act; “(2) the second and third sentences of section Time and Savings Deposits 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) arc amended to read as they (a) Maximum rate prescribed from time to time. would without the amendment made by section 3 —Except in accordance with the provisions of this of this Act; and part, no member bank shall pay interest on any “(3) section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is repealed.” time deposit or savings deposit in any manner, di- 872 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

873 rectly or indirectly, or by any method, practice, or of the Federal Reserve System, for the Board’s device whatsoever. Except as provided in paragraph prior approval of the merger of that bank and The (g) of this section, no member bank shall pay in­ Kerhonkson National Bank, Kerhonkson, New terest on any time deposit or savings deposit at a York, under the charter and title of Kingston Trust rate in excess of such applicable maximum rate as Company. As an incident to the merger, the three the Board of Governors of the Federal Reserve offices of The Kerhonkson National Bank would System shall prescribe from time to time; and any become branches of the resulting bank. Notice of rate or rates which may be so prescribed by the the proposed merger, in form approved by the Board will be set forth in supplements to this part, Board, has been published pursuant to said Act. which will be issued in advance of the date upon Upon consideration of all relevant material in which such rate or rates become effective. the light of the factors set forth in said Act, includ­ * $ >1- ing reports furnished by the Comptroller of the Cur­ (g) Time deposits of foreign monetary authori­ rency, the Federal Deposit Insurance Corporation, ties.—The provisions of paragraph (a) of this and the Attorney General on the competitive section do not apply to the rate of interest that may factors involved in the proposed merger, be paid by member banks on a time deposit, hav­ It is hereby ordered, for the reasons set forth ing a maturity of not more than two years, made in the Board’s Statement of this date, that said and owned by a foreign government, a monetary application be and hereby is approved, provided that or financial authority of a foreign government when said merger shall not be consummated (a) before acting as such, or an international financial institu­ the thirtieth calendar day following the date of this tion of which the United States is a member. All Order or (b) later than three months after the date certificates of deposit issued by member banks to of this Order. such organizations, on which the contract rate of Dated at Washington, D.C., this 3rd day of Oc­ interest exceeds the applicable maximum under tober, 1968. § 217.6, shall provide (1) that, in the event of trans­ By order of the Board of Governors. fer, the date of transfer, attested to in writing by Voting for this action: Chairman Martin, and Gov­ the transferor, shall appear on the certificate, and ernors Robertson, Mitchell, Daane, Maisel, and (2) that the maximum rate limitations of § 217.6 Sherrill. Absent and not voting: Governor Brimmer. in effect at the date of issuance of the certificate (Signed) Robert P. Forrestal. apply to the certificate for any period during which Assistant Secretary. it is held by a person other than such an organiza­ [seal] tion. Upon presentment of such a certificate for payment, the bank may pay to the holder the con­ tract rate of interest on the deposit for the time that Statement the certificate was actually owned by such an or­ Kingston Trust Company, Kingston, New York ganization. (“Kingston Bank”), with total deposits of $37 mil­ lion, has applied, pursuant to the Bank Merger Act ORDER UNDER BANK MERGER ACT (12 U.S.C. 1828(c)), for the Board’s prior ap­ proval of the merger of that bank with The Ker­ KINGSTON TRUST COMPANY, honkson National Bank, Kerhonkson, New York KINGSTON, NEW YORK (“Kerhonkson Bank”), which has total deposits of $7 million.' The banks would merge under the In the matter of the application of Kingston charter and name of Kingston Bank, which is a Trust Company for approval of merger with The member of the Federal Reserve System. As an Kerhonkson National Bank incident to the merger, the three offices of Ker­ honkson Bank would become branches of Kingston Order Approving Merger of Banks Bank, increasing the number of its offices to nine. There has come before the Board of Governors, Competition. Kingston Bank operates its head pursuant to the Bank Merger Act (12 U.S.C. office and two of its five branches in Kingston 1828(c)), an application by Kingston Trust Com­ pany, Kingston, New York, a State member bank 1 Deposit figures are as of December 30, 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

874 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 (population 20,300); the bank also operates its Hurley branch are the offices of three banks in branches at Ulster, Phoenicia, and Marlboro, which Kingston, including, of course, Kingston Bank. are, respectively, one mile north, 25 miles north­ It appears that Kerhonkson Bank has not been west, and 25 miles south of Kingston. Kerhonkson a very effective competitor. Thus, during the period Bank is headquartered in Kerhonkson (population 1960-66, population growth in the area from which 1,200), about 18 miles southwest of Kingston; the it derives the bulk of its business represented 13 bank operates two branches, one at Stone Ridge per cent of the population growth in the whole of and one at Hurley, 10 and two miles, respectively, Ulster County; yet the bank’s share of the increase southwest of Kingston. in bank deposits in the county was only 7 per cent. All offices of the two banks are in Ulster County, More particularly, the volume of deposits and loans which is on the west side of the Hudson River, generated by Kerhonkson Bank’s Hurley branch about midway between Albany and New York (established in 1964), its nearest office to Kingston, City. The county’s 1966 population of 137,000 re­ is far below what could reasonably be expected for presents an increase of 15 per cent since 1960, and the sole banking office in a community with a 1966 a 47 per cent increase since 1950. Within the last population of 6,100, representing a 35 per cent decade many industrial firms have established facili­ increase since 1960. Further, during recent months ties in Ulster County; about 240 such firms, most Kerhonkson Bank has experienced a decline in of which are located in the Kingston area, employ deposits. more than 15,000 persons. The merger of Kerhonkson Bank and Kingston Ten banks operate 29 offices in Ulster County, Bank would eliminate such competition as exists excluding one office in Wallkill, which is near the between them, as well as the potential for the de­ county’s southern border and 20 miles or more velopment of additional competition, and enhance from an office of either Kingston Bank or Kerhonk­ slightly the position of Kingston Bank. Kerhonkson son Bank. Kingston Bank holds 22 per cent of Bank, however, has not been a vigorous competitor, the deposits held by the 29 offices in this area. and the merger would remove home-officc-protec- The second and third largest banks in terms of tion from Kerhonkson, thus opening the community area deposits hold 21 per cent and 19 per cent, to de novo branching by other banks. respectively; the total deposits of the second rank­ The effect of the proposed merger on competi­ ing bank exceed those of Kingston Bank by 50 per tion would be adverse, but not substantially ad­ cent and the bank is a subsidiary of Bankers Trust verse. New York Corporation, a registered bank holding Convenience and needs of the communities. The company and the sixth largest banking organization replacement of Kerhonkson Bank by offices of in the State. In terms of total deposits, Kerhonkson Kingston Bank would make a broader range of Bank is the smallest of the 10 banks operating in banking services more conveniently available in Ulster County; in terms of area deposits, it ranks the communities presently served by Kerhonkson ninth, with 4 per cent. Bank, although this would not be particularly signif­ Kerhonkson serves as a trade center for a farm­ icant in Hurley which is only two miles from King­ ing and resort area that contains about 6,000 per­ ston. The merger would, of course, eliminate Ker­ sons. Residents of Kerhonkson and its environs who honkson Bank as an alternative source of banking commute to work go either to Ellenville, seven miles services. However, it is in the interests of the com­ to the southwest, or to Kingston. Stone Ridge and munities served by Kerhonkson Bank that the Hurley are residential communities, the residents bank’s problems be resolved fairly promptly; the of which are largely dependent upon Kingston for proposed merger would achieve that end. employment and shopping facilities. Financial and managerial resources and pro­ The nearest competitors to Kerhonkson Bank’s spects. The banking factors are satisfactory with main office are the two banks in Ellenville, which respect to Kingston Bank, as they would be with have deposits of $9 million and $15 million, respec­ respect to the resulting bank. tively; the nearest competitor to its Stone Ridge In early 1967, Kerhonkson Bank’s president, who office is the branch at Rosendale (six miles to the had served the bank for 20 years, became ill, and east) of a Goshen-headquartered bank that has in September of that year he died. The directors deposits of $18 million; the nearest competitors to have made a reasonable effort to deal with the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 875 management problem, but have not succeeded. The nett National Securities Corporation, Jacksonville, problem is complicated by the fact that the bank Florida, a registered bank holding company, for the has only recently sustained an accelerated loss in Board’s prior approval of the acquisition of 80 per deposits. During 1967 deposits declined 3 per cent; cent or more of the voting shares of The Munroe during the period January 1 to June 17, 1968, de­ and Chambliss National Bank of Ocala, Ocala, posits declined 6 per cent, or at an annual rate of Florida. about 12 per cent. As required by section 3(b) of the Act, the The directors of Kerhonkson Bank initiated dis­ Board notified the Comptroller of the Currency of cussions regarding a possible merger with five the application and requested his views and recom­ banks, including Kingston Bank; three other banks mendation. The Comptroller recommended ap­ expressed an interest in merging with Kerhonkson proval of the application. Bank. In the Board’s judgment, the effect on com­ Notice of receipt of the application was published petition of the merger of Kerhonkson Bank with in the Federal Register on May 8, 1968 (33 Fed­ any one of these seven other banks would not differ eral Register 6944), providing an opportunity for so significantly from that of its merger with King­ interested persons to submit comments and views ston Bank as to lend much weight to approval or with respect to the proposed transaction. A copy of disapproval. the application was forwarded to the United States Summary and conclusion. The merger would Department of Justice for its consideration. Time provide a ready and conclusive solution for the pro­ for filing comments and views has expired and all blems of Kerhonkson Bank, which is in the inter­ those received have been considered by the Board. ests of the communities the bank serves. While the It is hereby ordered, for the reasons set forth directors of Kerhonkson Bank, given more time, in the Board’s Statement of this date, that said ap­ might be able to find an adequate solution for these plication be and hereby is approved, provided that problems that would be somewhat less inimical to the acquisition so approved shall not be consum­ the preservation of banking competition and, thus, mated (a) before the thirtieth calendar day fol­ more consonant with the interests of the communi­ lowing the date of this Order or (b) later than three ties than the proposed transaction, the Board be­ months after the date of this Order unless such lieves that further delay and uncertainty would be period is extended for good cause by the Board or injurious to the bank. The Board concludes, there­ by the Federal Reserve Bank of Atlanta pursuant fore, that the application should be approved, even to delegated authority. though it regards the case as a close one. Dated at Washington, D.C., this 11th day of September, 1968. ORDERS UNDER SECTION 3 OF BANK By order of the Board of Governors. HOLDING COMPANY ACT Voting for this action: Chairman Martin and Gov­ BARNETT NATIONAL SECURITIES ernors Mitchell, Daane, Maisel, Brimmer, and Sherrill. CORPORATION, Absent and not voting: Governor Robertson. JACKSONVILLE, FLORIDA (Signed) Robert P. Forrestal, Assistant Secretary. In the matter of the application of Barnett Na­ | SEAL| tional Securities Corporation, Jacksonville, Florida, for approval of acquisition of 80 per cent or more of the voting shares of The Munroe and Chambliss In the matter of the application of Barnett Na­ National Bank of Ocala, Ocala, Florida. tional Securities Corporation, Jacksonville, Florida, for approval of acquisition of 80 per cent or more of the voting shares of Munroe and Chambliss Na­ Order Approving Application Under tional Bank of East Ocala, Ocala, Florida. Bank Holding Company Act There has come before the Board of Governors, Order Approving Application Under pursuant to section 3(a)(3) of the Bank Holding Bank Holding Company Act Company Act of 1956 (12 U.S.C. 1842(a)(3)) and section 222.3(a) of Federal Reserve Regula­ There has come before the Board of Governors, tion Y (12CFR 222.3(a)), an application by Bar­ pursuant to section 3(a)(3) of the Bank Holding Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

876 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 Company Act of 1956 (12 U.S.C. 1842(a)(3)) Munroe and Chambliss National Bank of Ocala, and section 222.3(a) of Federal Reserve Regula­ Ocala, Florida (“Ocala Bank”), and Munroe and tion Y (12CFR 222.3(a)), an application by Bar­ Chambliss National Bank of East Ocala, Ocala, nett National Securities Corporation, Jacksonville, Florida (“East Ocala Bank”). While each of the Florida, a registered bank holding company, for the applications has been separately considered and Board’s prior approval of the acquisition of 80 is the subject of a separate Board Order, because per cent or more of the voting shares of Munroe of facts and circumstances common to both ap­ and Chambliss National Bank of East Ocala, Ocala, plications, this Statement contains the Board’s find­ Florida. ings and conclusions with respect to both. As required by section 3(b) of the Act, the Views and recommendations of supervisory au­ Board notified the Comptroller of the Currency of thority. As required by section 3(b) of the Act, the application and requested his views and recom­ the Board notified the Comptroller of the Currency mendation. The Comptroller recommended ap­ of receipt of the applications and requested his proval of the application. views and recommendations thereon. The Comp­ Notice of receipt of the application was published troller recommended approval of both applications. in the Federal Register on May 8, 1968 (33 Federal Statutory considerations. Section 3(c) of the Act Register 6944), providing an opportunity for inter­ provides that the Board shall not approve an ac­ ested persons to submit comments and views with quisition that would result in a monopoly or would respect to the proposed transaction. A copy of the be in furtherance of any combination or conspiracy application was forwarded to the United States to monopolize or to attempt to monopolize the busi­ Department of Justice for its consideration. Time ness of banking in any part of the United States. for filing comments and views has expired and all Nor may the Board approve any other proposed those received have been considered by the Board. acquisition the effect of which, in any section of It is hereby ordered, for the reasons set forth the country, may be substantially to lessen compe­ in the Board’s Statement of this date, that said ap­ tition, or to tend to create a monopoly, or which plication be and hereby is approved, provided that in any other manner would be in restraint of trade, the acquisition so approved shall not be consum­ unless the Board finds that the anticompetitive ef­ mated (a) before the thirtieth calendar day follow­ fects of the proposed transaction arc clearly out­ ing the date of this Order or (b) later than three weighed in the public interest by the probable effect months after the date of this Order unless such of the transaction in meeting the convenience and period is extended for good cause by the Board needs of the community to be served. In each case or by the Federal Reserve Bank of Atlanta pur­ the Board is required to take into consideration the suant to delegated authority. financial and managerial resources and future pros­ Dated at Washington, D. C., this 11th day of pects of the bank holding company and the banks September, 1968. concerned, and the convenience and needs of the By order of the Board of Governors. community to be served. Competitive effect of proposed transactions. Ap­ Voting for this action: Chairman Martin and Gov­ ernors Mitchell, Daane, Maisel, Brimmer, and Sherrill. plicant, the fourth largest holding company and Absent and not voting: Governor Robertson. fourth largest banking organization in the State of (Signed) Robert P. Forrestal, Florida, presently controls eleven banks with ag­ Assistant Secretary. gregate deposits of $395 million.’ The ten largest [seal] banking organizations, the seven largest of which are bank holding companies, presently control about Statement 37 per cent of the total commercial bank deposits in the State. Upon consummation of the proposals, Barnett National Securities Corporation, Jack­ Applicant, which now controls 4.08 per cent of the sonville, Florida (“Applicant”), a registered bank total deposits held by the State’s 447 commercial holding company, has applied to the Board of banks, would control 4.3 per cent of such deposits. Governors, pursuant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1 Banking data arc as of December 31, 1967, unless 1842(a)(3)), for prior approval of the acquisition otherwise noted, and reflect acquisitions approved by the of 80 per cent or more of the voting shares of The Board to date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 877 Approval of the applications would therefore have deposits of about $4 million, are located elsewhere only slight effect on the present degree of State-wide in Marion County. The present levels of concentra­ concentration. tion in Ocala and Marion County would not be Both of the proposed subsidiary banks are located affected by the present proposals, and it does not in the City of Ocala, in Marion County, Florida. appear that there would be any significant adverse Applicant presently has no subsidiary in Marion effect on the viability or competitive effectiveness County and none within 60 miles of Ocala. The of competing institutions. Ocala National Forest constitutes a natural barrier In light of these facts, the Board concludes that between Ocala and Applicant's closest subsidiary consummation of the proposed acquisitions would bank, which is located in DeLand. None of Ap­ not result in a monopoly nor be in furtherance of plicant’s subsidiaries competes with either of the any combination, conspiracy, or attempt to monop­ subject banks and, in view of the distances involved olize the business of banking in any area. It docs and the prohibition against branch banking in Flo­ not appear that the proposals would have the effect rida, it does not appear likely that such competition of substantially lessening competition or tending to would develop in the future. create a monopoly in any section of the country, Although East Ocala Bank serves an area which nor would they in any other manner be in restraint lies wholly within that served by Ocala Bank, there of trade. is no effective competition between them and little Financial and managerial resources and future prospect that such will develop in the future. East prospects. Applicant’s financial condition, its man­ Ocala Bank, which began business in February of agement, and its prospects are considered satisfac­ this year, was organized by the management of tory. Ocala Bank to provide a more accessible banking facility for residents of the eastern section of Ocala, Management of Ocala Bank and East Ocala the largest residential area of the City. Each of the Bank, which is to a large extent shared by both, ten directors of East Ocala Bank serves also on the is considered competent. The financial condition Board of Ocala Bank, its Board Chairman is Execu­ of both is considered satisfactory, except that the tive Vice President of Ocala Bank, its President is present capital of Ocala Bank is somewhat below a former officer and present director of Ocala Bank, the desirable level for a bank of its size; this fact has and a majority of its stock is owned by persons who been recognized by Applicant, which proposes, if also own a majority of the shares of Ocala Bank. the present application is approved, to provide such East Ocala Bank is at present heavily dependent on additional capital as is found appropriate by the Ocala Bank for earnings assets, and, although it is Comptroller of the Currency. The prospects of both probable that the necessity for the present affilia­ banks are considered good, although those of East tion would diminish after the former bank’s initial Ocala Bank, for the immediate future, are heavily period of growth, such affiliation seems sufficently dependent on continuation of its present affiliation benefical to both banks to preclude the likelihood with Ocala Bank. of its voluntary dissolution in the indefinite future. Considerations under this factor are consistent Consummation of Applicant’s proposal, therefore, with approval of the applications. would not eliminate existing or potential competi­ Convenience and needs of the contniunities in­ tion between the two banks. volved. Consummation of Applicant’s proposal In addition to Ocala Bank and East Ocala Bank, would not affect the convenience or needs of the which have total deposits" of $21 million and $1.1 communities served by its present subsidiaries. million, respectively, the City of Ocala is served Marion County, which has a population of 65,­ by three other banks: Commercial Bank & Trust 000, has a diverse economy consisting of agricul­ Company of Ocala ($29 million deposits); Florida ture, light industry, mining, and tourism. Principal First National Bank at Ocala ($18 million depos­ agricultural products are cattle and citrus, with a its), a subsidiary of the duPont Trust, a registered moderate amount of truck farming and 100 thor­ bank holding company; and First Marion Bank oughbred horse farms; meat packing and citrus ($4.3 million deposits). Two other banks, each with concentrate plants are located in the county. The area has several tourist attractions, the largest of -All deposit data in this paragraph are as of April 18, 1968. which is Silver Springs. Mining activities stem pri- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

878 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 marily from the County’s deposits of limerock and specialist thoroughly familiar with the special prob­ limestone. lems of financing the citrus industry, and to make The banks operating in Ocala and Marion County his services available to its subsidiary banks. provide those areas with reasonably complete bank­ These considerations are consistent with, and ing services. The major improvements contemplated provide some weight in favor of, approval of the by Applicant with respect to the services rendered applications. by the proposed subsidiary banks are in the areas Summary and conclusion. On the basis of all of trust services and specialized services to the relevant facts contained in the record, and in the citrus industry. Applicant intends to transfer a qualified trust officer to Ocala Bank from its largest light of the factors set forth in section 3(c) of the subsidiary, and proposes that the bank will solicit Act, it is the Board’s judgment that the proposed such business more actively than it has done in the transactions would be in the public interest and that past. In addition, Applicant plans to employ a the applications should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements ELECTION OF DIRECTORS System’s program of adapting its operations to the latest developments in data processing and trans­ The Federal Reserve Bank of Kansas City an­ mission technology. nounced the election on September 10 of Mr. C. M. The new automated communications grid will re­ Miller as a Class A director to serve the remainder place a more than 15-year-old nationwide leased of a term expiring December 31, 1970. Mr. Miller wire network now used for the transfer of money, is president of The Farmers and Merchants State securities, and economic data among the Federal Bank in Colby, Kansas. As a director of the Kan­ Reserve Banks and their member commercial banks. sas City Bank he succeeds Mr. Kenneth H. Peters, Service is expected to begin late in 1969 or in president of The First State Bank of Larned, Kan­ early 1970. In addition to the central communica­ sas, who died on June 13, 1968. tions switch at Culpeper, the grid will also require The Federal Reserve Bank of Kansas City an­ advanced communications equipment at the offices nounced the election on October 1 of Mr. Cecil O. of the Board of Governors in Washington, the 12 Emrich as a Class B director to serve the remainder Federal Reserve Banks, their 24 branches, and the of a term expiring December 31, 1969. Mr. Emrich U.S. Treasury Department. is manager of Norfolk Livestock Market, Inc., Also in process are plans for early linkage of in Norfolk, Nebraska. As a director of the Kan­ Federal Reserve Bank offices with computerized sas City Bank he succeeds Mr. Fred W. Gil­ facilities operated by or on behalf of commercial more, who resigned on August 31, 1968, to accept banks that hold membership in the Federal Reserve the position of Deputy Governor and Director of System or participate in its clearing arrangements. Land Bank Service of the Farm Credit Administra­ A nationwide electronic grid capable of large tion in Washington, D.C. volume and high accuracy will require uniformity in coding, transmission, formats, and procedures. To develop the necessary uniformity, the Federal RESIGNATION OF DIRECTOR Reserve staff has been conferring and working with Dr. Kenneth S. Pitzer, who served as a Class C representatives of the American Bankers Associa­ director of the Federal Reserve Bank of Dallas tion, the Bank Administration Institute (formerly from January 1, 1966, resigned effective October 1, NABAC), and others to ascertain the needed 1 968, and will assume the Presidency of Stanford standards and to determine which lines of develop­ University, California, on December 1. Dr. Pitzer ment will yield the greatest benefit and service. was President and Professor of Chemistry at Rice The computerized operation will permit the grad­ University, Houston, Texas. ual removal of limitations on the volume of trans­ fers now imposed on the leased wire network by manual operations and outdated equipment. ELECTRONIC TRANSFER SYSTEM Money balances and data will be moved over the In a major preparatory step toward an electronic new system at speeds up to 40 times as fast as the transfer system for bank deposits and financial data present teletypewriter network. The volume poten­ in the 1970’s, the Federal Reserve System an­ tial of the computerized network will provide a nounced on September 20, 1968, that it has entered capacity of at least 12 times that now needed to into a contract for a key segment of a computerized handle the present operational load of the Federal network to speed up the movement of money, secu­ Reserve. It is expected that several thousand addi­ rities, and economic statistics. tional money transfers daily will go by wire as con­ A $2,756,835 contract with Marshall Communi­ nections with member banks are automated and cations, Santa Ana, California, calls for purchase, existing mechanical limitations on use arc over­ installation, and maintenance for 5 years of a cen­ come. At present, the teletypewriter system handles tral communications switch to be located at Cul­ about 9,000 money transfers involving billions of peper, Virginia. It constitutes another step in the dollars daily. 879 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

880 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 The automation of deposit transfers between and the central switch, although expansion plans pro­ within Federal Reserve offices will open the way vide for secondary “collector” facilities elsewhere for a completely electronic transfer system for a if traffic growth makes them desirable. large portion of the country’s money movements. Given a Federal Reserve wire system with adequate STUDY ON INTEREST-RATE EXPECTATIONS capacity to respond immediately, member banks Interest-Rate Expectations: Tests on Yield Spreads should find it desirable to automate their own com­ Among Short-Term Government Securities by munications with the Federal Reserve Bank or Helmut F. Wendel is available for distribution. Branch that serves them. This would enable them In this study expectations have been appraised to transfer funds to or from any other member bank on a “computer-to-computer” basis. Thus, by indirect measurements, that is, by making they would have the capacity to move money, at various assumptions about their characteristics the direction of their customers, to or from any and about their effects on yield spreads as observed customer of any other member bank, wherever in the market. It was assumed that, if investors located. make portfolio choices on the basis of interest­ Last June 25, the Federal Reserve System an­ rate expectations, they would acquire over a nounced that it was beginning contract negotiations period of time the ability to forecast interest-rate with Marshall Communications for the automated levels with some noticeable degree of accuracy. communications switch. This followed a System In addition, simple models demonstrating how announcement last February 27 of plans to replace investors might formulate expectations at any its nationwide leased wire network. given period of time were set up, and they were The switch to be installed at Culpeper will be a tested to evaluate whether expectations formu­ Ml000 Quad Communications Switching System lated in such a manner would explain changes in which will be operated by the staff of the Federal yield spreads. A novel feature is that observations Reserve Bank of Richmond on behalf of the entire other than past interest-rate behavior are intro­ Federal Reserve System. Target date for the initial duced into the cxpcctational models. phase of installation is the end of 1969. Requests for copies should be sent to the Divi­ Terminals in the Federal Reserve offices will con­ sion of Administrative Services, Board of Gover­ sist of teletypewriters; magnetic tape transmitter­ nors of the Federal Reserve System, Washington, receivers; and computers, depending upon the type D.C. 20551. Remittance should accompany order and volume of traffic at specific points. Although and be made payable to the order of the Board of text messages will be handled, most of the volunic Governors of the Federal Reserve System (prices will consist of wire transfers of funds and securities. shown on page A-95). Several types of circuits will be employed. Tele­ type equipment, in large measure duplicating the ERRATUM 8I-D-1 teletype system presently used by the Fed­ eral Reserve, will be served by 150-baud, full du­ The table “Detailed Debit and Credit Balances plex lines. Transmission of magnetic tapes will and Related Items of Member Firms of the New utilize 2400-baud circuits. Data transfers originat­ York Slock Exchange and the American Stock ing in, or destined for, computers will use 2400­ Exchange Carrying Margin Accounts on June 28, baud lines as well as certain special arrangements. 1968” as published in the September 1968 Bulle­ Eight-level full ASCII code will be used. All Fed­ tin on page A-93 is inaccurate. The corrected eral Reserve offices will be connected directly with table appears on p. A-91 of this Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication October 16 Industrial production declined in September and EMPLOYMENT retail sales continued at advanced levels. Nonfarm Nonfarm payroll employment increased by 125,000 employment increased but the unemployment rate in September; for the May-August period, the aver­ edged up. Commercial bank credit and time and age increase had been 1 80,000. Gains were concen­ savings deposits increased further but the money trated in trade, services, and State and local gov­ supply declined. Between mid-September and mid­ ernment. Construction employment increased by October, yields on U.S. Government securities and 43,000 but about three-fourths of the rise resulted on corporate and municipal bonds rose on balance. from the return to work following contract settle­ ments. Manufacturing employment was unchanged INDUSTRIAL PRODUCTION with employment stable in most major industries. Industrial production declined somewhat further in The average workweek of manufacturing produc­ September and was 163.4 per cent of the 1957-59 tion workers rose by 0.4 hours. The unemployment average, compared with 163.9 per cent in August. rate increased slightly to 3.6 per cent in September Output of final products was unchanged but pro­ from 3.5 per cent in August, reflecting mainly an duction of some industrial materials declined. increase in women jobseekers. Auto assemblies dipped slightly in September, but production schedules for October indicate a DISTRIBUTION rise. The dip in auto assemblies in September was offset by small gains in output of some other con­ The volume of retail sales in September was about sumer durable and some nondurable goods. Produc­ unchanged from the August level, according to ad­ tion of business equipment was unchanged at about vance Department of Commerce estimates. Sales the levels prevailing throughout the year. Output at nondurable goods stores declined about 1 per of iron and steel declined 6 per cent further and cent while durable sales rose 2 per cent. Dealer production of some nondurable industrial materials, deliveries of new domestic autos were about un­ mainly crude oil and coal, also declined. changed at a 9 million annual rate. COMMODITY PRICES Following several months of little change, whole­ sale prices of industrial commodities rose an esti­ mated 0.3 per cent from mid-August to mid-Scptember with increases for steel and lumber especially important. The rise in the industrial average has apparently continued since mid-September reflect­ ing in part price increases for various chemicals and for 1969 model autos. Wholesale prices of foods and foodstuffs which had declined in August rose in September with egg prices up sharply. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit increased $4.3 billion in September—much less than the rapid expansion of F.R. indexes, seasonally adjusted. Latest figures shown are the two previous months. Holdings of U.S. Governfor September. 881 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

882 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 merit securities showed little further change, follow­ Member bank borrowings declined while excess ing increases in July and August associated with reserves remained unchanged. Total reserves, which Treasury financings. Bank acquisitions of municipal had increased sharply in August, declined slightly and agency issues remained heavy. Growth in total in September. loans continued at about the same pace as in August but was much less rapid than in July when financing of increased security inventories at brokers SECURITY MARKETS and dealers was very large. Yields in all maturity sectors of the Treasury securi­ The money supply declined $700 million in Sep­ ties market, and especially in the longer-term area, tember following reduced growth in August. U.S. Government deposits increased further. Time and have risen on balance since mid-September, largely savings deposits rose $2.9 billion—about the same reflecting stronger than expected economic activity as the July-August rate and much more rapidly and consequent growing uncertainty over the near­ than in the first half of the year. In September, run­ term course of interest rates. The 3-month bill was offs of large negotiable CD’s associated with tax bid at around 5.35 per cent in the middle of Octo­ and dividend payments were much smaller than ber. usual and inflows of consumer-type time and sav­ Yields on corporate and municipal bonds were ings deposits recovered somewhat further. relatively stable from mid-September until early Net borrowed reserves averaged about $160 mil­ October, but since then they advanced sharply. lion over the 4 weeks ending September 25 or some­ Common stock prices rose steadily to new highs what below the $240 million average in August. throughout the period in very heavy trading volume. Prices Discount rale, range or level lor all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 years or more and lor 90-day Treasury bills. Latest figures shown, week ending Sept. 13. 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 □ OCTOBER 1968 U.S. STATISTICS—Continued A-56 Industrial production A-60 Business activity A-60 Construction A-62 Labor force, employment, and earnings A-64 Consumer prices A-64 Wholesale prices A-66 National product and income A-68 Flow of funds INTERNATIONAL STATISTICS: A-70 U.S. balance of payments A-71 Foreign trade A-72 U.S. gold transactions A-73 U.S. gold stock; position in the IMF A-74 International capital transactions of the United States A-86 Gold reserves of central banks and governments A-87 Gold production A-88 Money rates in foreign countries A-89 Arbitrage on Treasury bills A-90 Foreign exchange rates SPECIAL TABLE: A-91 Stock market credit A-98 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 111,1V 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 initially—Continued Issue Pafte 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~9I 1966..................................................... 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 anil 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 Hanking offices and deposits of Stock exchange firms, detailed debit group banks, Dec. 31, 1967 .......... Aug. 1968 A-9 3 and credit balances: Original......................................... Sept. 1968 A-92 Corrected....................................... Oct. 1968 A-91 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-4 BANK RESERVES AND RELATED ITEMS □ OCTOBER 1968 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other P d e o a ri r t o e d U.S. Govt, securities! Dis­ Gold T c u r u r e y r a ­ s r C e i n u n c r y ­ T u re ry a s­ tha w n i th m re e F se m . r R v b . e e s r B , b an an ks k O F t . h R e . r Me r m es b e e r r v e b s ank Total B r o o ig u u h g t­ t ht R m c a h e g e p a r n e s u t e e s r ­ ­ c v o a a a n n u d c d n ­ e t s s Float 2 t T al o ­ 3 stock s r o e t i a n u n n g c t­ d y ­ c t c i u o i l r n a ­ ­ h c in o a g s ld h s ­ T u re ry as­ F ei o g r n ­ Others co a u c n ­ ts B W F a . n R it k h . s c r C a e o n n i u n c d r y ­ 4 Total Averages of daily figures 1929—June....... 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 2 314 1933—June....... 1,933 1,933 250 12 2,208 4,030 2,295 5'455 272 81 164 350 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 11 373 11 473 1941—Dec......... 2,219 2,219 5 170 2i 404 22,759 3,239 10^985 2 J89 592 1,531 292 12^812 12 812 1945—Dec......... 23,708 23,708 381 652 24,744 20,047 4,322 28,452 2,269 625 1.247 493 16’027 16,027 1950—Dec......... 20,345 20,336 9 142 1,11721,606 22,879 4,629 27,806 L290 615 920 353 739 17,391 17,391 1960—Dec......... 27,248 27.170 78 94 1,66529,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 2,595 19,283 1962—Dec......... 30,546 30,474 72 305 2,298 33,218 15,978 5,561 35,281 398 587 222 290 1,048 16,932 3,108 20,040 1963—Dec......... 33,729 33,626 103 360 2,43436,610 15,562 5,583 37,603 389 879 160 206 1,215 17,303 3,443 20,746 1964—Dec......... 37,126 36,895 231 266 2,423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964 3.645 21,609 1965—Dec......... 40.885 40,772 113 490 2,34943,853 13,799 5,565 42,206 808 683 154 231 389 18,747 3.972 22,719 1966—Dec......... 43,760 43,274 486 570 2,383 46,864 13,158 6,284 44,579 1,191 291 164 429 83 19,568 4,262 23,830 1967—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 1,599 51,863 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 ,58052,998 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 ,712 53,813 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 1 ,76055,048 10,367 6,733 48,194 81 1 963 170 459 -102 21 ,653 ”4,416 ”26,069 Sept......... 52,222 52,208 14 515 1,96954,757 ”10,367 ”6,737 ”48,473 ”792 611 131 450 -151 21 ,555 ”4,435 ”25,990 Week ending— 1967 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 I ,487 362 126 473 24 20,021 4,295 24,316 27............. 46,452 46,452 74 1 ,53048,193 13,006 6,759 45,044 1 ,502 927 129 454 37 19,865 4,347 24,212 Oct. 4............. 46,976 46,976 144 1 ,495 48,773 13,006 6,763 45,107 1 ,500 866 125 477 54 20,413 4,229 24,642 11............. 47,563 47,319 244 145 1 ,41849,247 13,007 6,767 45,407 1 ,473 1 ,002 127 502 93 20,419 3,980 24,399 18............. 47,802 47,315 487 216 1 ,40249,515 13,007 6,781 45,559 1 ,484 942 131 485 -93 20,795 4,234 25,029 25............. 47,098 47,098 58 1 ,56448,773 13,007 6,792 45,429 1 ,482 1 ,087 1 19 455 -210 20,210 4,339 24,549 Nov. 1............. 47,220 47,220 80 1,28948,643 12,978 6,787 45,341 1 ,483 929 124 462 -210 20,279 4,426 24,705 8............. 47,865 47,710 155 132 1 '40749,458 12,907 6,777 45,563 1 ,474 928 127 470 -184 20,762 3,992 24,754 15.............. 47,868 47,713 155 162 1 ,48749,570 12,907 6,782 45,878 1 ,470 1 ,096 133 451 -240 20,470 4,229 24,699 22............. 47,837 47,712 125 127 1 ,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 ( ,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 ,652 50,769 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 2,388 51 '785 12,434 6,783 47,293 1,405 709 150 412 -251 21,285 4,402 25,687 1968 Jan. 3.............. 49,298 49,044 254 495 2,335 52,286 1 I,982 6,784 47,200 1,395 949 147 567 -685 21 ,480 4,968 26,448 10............. 49,183 49,109 74 180 2,334 51 ,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 ,987 51,044 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 46,1 17 1,390 939 149 471 -459 21,346 4,576 25,922 31............. 48,970 48,936 34 241 1,44950,751 11,983 6,786 45,763 1,39! 1 ,096 161 467 -426 21 ,069 4,603 25,672 Feb. 7........... 49,344 48,925 415 241 1 ,451 51 ,099 11 ,954 6,788 45,777 1 ,361 912 142 450 -554 21 ,752 4,169 25,921 14...4..9..,.2..1.0 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 ........4..42 IJ55650,779 11 ,883 6,796 45,817 1,319 1 ,022 147 461 -444 21 ,137 4,499 25,636 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ BANK RESERVES AND RELATED ITEMS A-5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other Treas­ than member bank Member bank P d e o a ri t r o e d U.S. Govt, securities! Dis- Gold c u u ry r - C re u n in r c ­ y T u r r e y a s­ with F re .R se . r v B e a s n , ks O F th .R er . reserves Total B r o o ig u u h t g ­ t ht R a m c g e h e r p a e n u s e t e r s ­ ­ c v o a a a u n n d c n d ­ e ts s Float 2 t T al o ­ 3 stock r s o e t i a n n u n g c t­ y d ­ c t c u i i o l r a n ­ ­ h c in o a g l s d h s ­ T u re ry as­ F ei o g r n ­ Others co a u c n ­ ts B W F a . n R it k h . s c r C o a e i n n u n d c r ­ y 4 Total ----—— Averages of daily figures Week ending— 1968 Mar. 6.............. 49,077 49,019 58 501 1,72951,363 11,883 6,797 45,832 1 ,301 992 152 489 -418 21,695 4,102 25,797 13............. 49,278 49,166 112 787 1,47351,595 11,609 6,795 46,205 1 ,275 1 ,008 122 478 -474 21,386 4,162 25,548 20.............. 49,840 49,840 748 1 ,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 1 ,44952,103 10,484 6,798 46,358 1,126 537 182 653 -579 21,109 4,354 25,463 10.............. 50,153 49,950 203 661 1 ,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 1 ,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 1 ,076 165 463 -442 20,849 4J473 25,322 June 5.............. 50,619 50,619 772 1 ,54052,985 10,382 6,796 47,254 I ,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 c6,766 *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 22,014 4,213 26,227 14.............. 52,518 52,212 306 580 1,63654,820 10,367 6,730 48,289 811 927 189 449 -313 21,565 4,325 25,890 21.............. 52,788 52,604 184 619 1,98255,457 10,367 6,734 48,252 808 998 173 467 42 21 ,816 4,411 26,227 28.............. 52,663 52,663 .......... 374 1,721 54,810 10,367 6,740 48,190 808 1 ,084 125 444 51 21,217 4,574 25,791 Sept. 4............. 52,975 52,975 454 1 ,699 55,180 10,367 6,730 48,431 787 938 140 457 101 21,422 ”4,449 ”25,871 11.............. 52,341 52,341 634 1 ,90454,930 10,367 6,733 48,685 787 147 134 446 60 21,771 ”4,425 ”26,196 18............. 51,630 51 ,630 405 2,17454,259 10,367 6,735 48,567 790 208 128 465 -292 21,496”4,450 ”25,946 25.............. 51,844 51,844 .......... 475 r2,191 r54,560 10,367 6,742 48,325 798 866 123 445 -293 ”21,405 ”4,425 ”25,830 End of month 1968 July. 52,397 52,160 237 736 1 ,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 529Pl, 851 ”55,475 10,367 6,724 48,353 776 916 127 463 109”21,822 ”4,187 ”26,009 Sept. 53,288 52,839 449 390 ’'940t’54,704 7’10,367”6,745 ”48,314 ”802 1 ,036 192 485 -246”21,233 ”4,608 ”25,841 Wednesday 1968 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 52,038 363 1 ,74254,201 10,367 6,726 48,381 833 897 155 466 -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 1,774 54,501 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 ,648 54,880 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 ”4,496 ”26,731 14.............. 52,521 52,212 309 291 1 ,74054,650 10,367 6,731 48,379 812 931 216 491 -389 21,309 ”4,905 ”26,214 21.............. 52,894 52,750 144 416 1 ,879 55,241 10,367 6,737 48,288 807 1 ,046 125 450 41 21.587”4,920 ”26,507 28............. 52,618 52,618 .......... 537 1,54954,756 10,367 6,739 48,353 808 999 132 459 51 21,060 ”5,082”26,142 Sept. 4.............. 52,796 52,796 445 1,658 54,951 10,367 6,731 48,694 795 1 ,041 149 448 68 20,854”4,709”25,563 11.............. 50.952 50,952 115 1 ,715 52,833 10,367 6,734 48,771 788 21 129 460 -71 19,836”5,064”24,900 18.............. 50,395 50,395 355 2,320 53,119 10,367 6,738 48,527 800 668 125 446 -315 19,974 ”4,449 ”24,423 25.............. 52,405 52,405 .......... 1 ,565 Pl,789 ”55,808 10,367 6,741 48,356 797 1 ,027 134 451 -281 ”22,432”4,425 ”26,857 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 1960 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 □ OCTOBER 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 el t d al qu R i e re ­ d Excess B r F i a o n a . n R w g t k s . ­ s s F er r r v e e e e ­ s T h o e t l a d l qu R ir e e ­ d Excess B ™ F m a a . n R g w t k s . - s s F e r r r e v e ­ e e s T h o el t d al qu R ire e d ­ Excess B r F i a o n a . n R g w t k s , ­ s se F r r e v r ­ e es e 1929—June............ 2,314 2,275 42 974 -932 762 755 7 174 — 167 161 161 1 63 -62 1933—June............ i 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—.Dec.............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1 ,143 848 295 295 1945—Dec............. 16,027 14,536 1,491 334 1 ,157 4,118 4,070 48 192 -144 ’939 924 14 14 1947—Dec............. 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 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 1,042 1,035 7 18 -11 1963—Dec.............. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1 056 1,051 5 26 -21 1964—Dec.............. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1 ,083 1 086 3 28 31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 — 70 1,143 1,128 15 23 — 8 1966—Dec.............. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Sept............. 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 24,740 24,337 403 133 270 4,826 4,784 42 19 23 1,191 1 .178 13 2 11 Dec............. 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1 ,225 1,217 8 13 -5 1968—Jan.............. 25,834 25,453 381 237 144 5.170 5,131 39 48 -9 1 ,231 1 ,230 I 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 25,546 25^76 270 683 -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 I '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 25'702 299 525 -226 5,047 5,060 -13 12 -25 1,190 1 ,181 9 87 -78 J’26,069 ”25,690 ”379 565 ”-186 ”4,940 ”4,910 ”29 192 ”-163 ”1,165 ”1'162 ”4 2 ”2 ”25,990”25,690 ”300 515 ”-215 ”4,877 ”4,870 ”7 154 ”-147 ”1 ,149 ”1,142 ”7 23 -16 Week ending— 1967—Sept. 6.... 23,925 23,593 332 79 253 4,701 4,671 30 21 9 1,172 I ,161 11 11 13. ... 24,039 23,653 386 70 316 4,664 4,630 34 34 1,147 1,132 15 15 20.... 24,316 23,908 408 106 302 4,782 4,756 26 21 5 r,i7i 1 J71 27.... 24,212 24,001 211 74 137 4,858 4,839 19 19 1 ,’202 1 '194 8 8 1968—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 J 26 12 26 -14 17. . .. 26,090 25,563 527 763 -236 5,085 5,068 17 47 -30 1,188 1 ,183 5 255 -250 24. ... 25,503 25,377 126 651 -525 5,020 5,023 -3 49 -52 1,165 1,154 11 109 -98 May 1 . . .. 25,518 25,242 276 674 -398 5,014 4,975 39 63 -24 1,200 1 ,197 3 52 -49 8. . .. 25,698 25,317 381 823 -442 5,023 4,958 65 64 1,198 1,194 4 220 -216 15 . 25,379 24,979 400 712 -312 4,786 4,774 12 124 -112 1,139 1,139 49 -49 22.... 25,379 25,057 322 669 -347 4,900 4,848 52 52 1'150 1 142 8 23 -15 29.... 25,322 24,931 391 764 -373 4,866 4,846 20 79 -59 1134 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 25,85! 410 639 — 229 5,108 5,108 1 ] -11 1 212 1 ,209 3 171 — 168 31 .... 26,186 25^28 358 602 -244 5,176 5,097 79 15 64 । ;2i7 1 '208 9 126 -117 Aug. 7 .... 26,227 25,885 342 737 -395 5,113 5,093 20 337 -317 1,187 1,182 5 5 14.... 25,890 25,576 314 576 -262 4^866 4,834 32 191 -159 1,153 1,147 6 6 21 ... . 26,227 25,713 514 619 -105 4,906 4j 898 8 278 -270 1 1 67 1 '162 5 5 28.... 25,791 25,612 179 374 -195 4,893 4,854 39 39 1,147 1 J48 -1 10 -11 Sept. 4.... ”25,871 ”25,599 ”272 454 ”-182 ”4,817 ”4,839 ” — 22 111 ”-133 ”1 186 ”1,175 ”11 ”1 1 11 . ”26,196 ”25,658 ”538 634 ”—96 ”4,989 ”4,854 ”1 35 240 ”-105 ”1,145 ”1,123 ”23 ”23 18... . ”25,946”25,599 ”347 405 ”-58 ”4,851 ”4,839 ”12 107 ”-95 »i;i73 xl,I75 ”-2 11 ”-13 25 .... ”25,830”25,658 ”172 475 ”-303 ”4,830 ”4,854 ”-24 90 ”-114 ”1 ,130 ”1,123 ”7 86 ”-79 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ BANK RESERVES AND RELATED ITEMS A-7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Reserves Borrow­ Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves Banks Banks T h o e t l a d l Required Excess T h o e t l a d l Required Excess 761 749 12 409 -397 632 610 22 327 -305 ...........................1929—June 648 528 120 58 62 441 344 96 126 -30 ...........................1933—June 3.140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1,303 1,302 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. 9,649 9,623 26 32 -6 8,582 8,304 278 47 231 ...........................1967—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 10,314 10,283 31 111 -80 9,120 8,809 311 75 236 ........................... 1968—Jan. 10,271 10,218 53 126 -73 9,057 8,766 291 125 166 ........................................Feb. 10,247 10,212 35 288 -253 9,009 8,780 229 218 11 ........................................Mar. 10,298 10,272 26 283 -257 9,097 8,859 238 229 9 ........................................Apr. 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 10,447 10,392 55 152 -97 9,317 9,070 247 274 -27 .......................................July ”10,567 ”10,497 ”70 161 ”-91 ”9,396 ”9,121 ”275 210 ”65 ........................................Aug. ”10,502 ”10,469 ”34 194 ”-160 ”9,461 ”9,209 ”252 144 ”108 .......................................Sept. Week ending— 9,608 9,570 38 17 21 8,443 8,191 252 41 211 9,592 9,560 32 19 13 8,636 8,331 305 51 254 ...........................................13 9,627 9,616 11 50 -39 8,736 8,364 372 35 337 ...........................................20 9,664 9,662 2 22 -20 8,847 8,307 180 52 128 ...........................................27 10,261 10,222 39 321 -282 8,978 8,726 252 252 10,293 10,235 58 184 -126 9,011 8,808 203 309 -106 ...........................................10 10,405 10,367 38 307 -269 9,412 8,944 468 154 314 ............................................17 10,300 10,267 33 316 -283 9,018 8,933 85 177 -92 ...........................................24 10,290 10,263 27 302 -275 9,014 8,808 206 257 -51 ..................................May 1 10,348 10,298 50 253 -203 9,130 8,867 263 286 -23 .......................................... 8 10,230 10,169 61 248 -187 9,225 8,898 327 291 36 ............................................15 10,243 10,188 55 259 -204 9,086 8,878 208 387 -179 ...........................................22 10,152 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 -111 9,248 9,047 201 282 -81 ...........................................31 10,538 10,515 23 170 -147 9,390 9,095 295 230 65 ..................................Aug. 7 10,534 10,457 77 149 -72 9,336 9,139 197 236 -39 ...........................................14 10,578 10,536 42 152 -110 9,576 9,117 459 189 270 ...........................................21 10,530 10,489 41 158 -117 9,221 9,121 100 206 -106 ...........................................28 ”10,509 ”10,460 i*49 178 ”-129 ”9,359 ”9,125 ”234 165 ”69 .................................Sept. 4 ”10,541 ”10,446 ”95 261 ”-166 ”9,520 ”9,234 ”286 133 ”153 ...........................................11 ”10,457 ”10,460 ”-3 148 ”-151 ”9,464 ”9,125 ”339 139 ”200 ...........................................18 ”10,431 ”10,446 ”-15 190 ”-205 ”9,439 ”9,235 ”204 109 ”95 ...........................................25 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 arc 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 Rorrowings at F.R. Ranks; Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-8 MAJOR RESERVE CITY BANKS □ OCTOBER 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 week ending— s E er x r v c e e e ­ s s s t r a o t B w F o in . r R ­ gs . F i b e n N a d t n e e e k r r t a ­ l Sur o p r l us r P e e q a r u o v c i g f r e . e n d t c P ha u s r e ­ s Sales ac 2 t T r t - a o i w o n t a a n s y l ­ s 2 b c o P u h f y a u n s i r n e e ­ g s t s o S e f l a l l n i e n e s g t d L ea o t l o a e n r s s 3 de f r i r a o n o l g w e m s r ­ s 4 lo N a e n t s Banks funds deficit reserves banks banks trans. Total—46 banks 1968—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 Sept. 4............ 13 194 2,299 -2,479 21.9 4,132 1,833 1,524 2,608 309 2,214 190 2,024 11............ 213 426 3,573 -3,786 33.7 4,898 1 ,325 1 ,181 3,717 144 2,375 179 2,196 18............ 18 213 3,948 -4,143 36.7 5,467 1 ,519 1 ,435 4,032 84 2,718 163 2,555 25............ 16 297 3,349 -3,629 32.3 4,792 1.443 1 ,306 3,486 137 2,464 103 2,362 8 in New York City 1968—Aug. 7............ 5 337 1,110 -1,442 31 .0 1,591 480 480 1,110 1,506 75 1,431 14............ 24 170 1,373 -1,518 34.5 1 ,824 452 442 1 ,382 9 1,146 96 1 ,051 21............ 12 274 I ,006 -1,267 28.4 I ,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 Sept. 4............ -25 104 976 -1,105 25.1 1,495 519 519 976 1,195 100 1 ,094 11 129 225 1 ,478 -1,575 35.6 1 ,781 302 300 1 ,481 3 1,193 89 1,104 18............ 19 86 1 ,416 -1,483 33.6 1 ,905 490 490 1 ,416 1,435 95 1,340 25............ 9 84 1,124 -1,199 27.1 1 ,635 512 512 1,124 1,403 100 1 ,303 38 outside New York City 1968—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 1 ,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 Sept. 4............ 38 90 1,322 -1,374 19.9 2,636 1 ,314 1 ,005 1,631 309 1,019 90 929 11............ 84 201 2,095 -2,211 32.5 3,117 1 ,022 881 2,236 141 1,182 90 1 ,092 18............ -1 128 2,533 -2,661 38.6 3,562 1 ,029 945 2,617 84 1,283 68 1 .215 25............ 8 213 2,225 -2,430 35.7 3,156 931 794 2,362 137 1,061 2 1,059 5 in City of Chicago 1968—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............ 10 350 -360 34.6 626 276 263 363 14 75 ............7..5 Sept. 4............ 6 466 -460 42.9 752 286 273 479 13 80 80 11............ 24 689 -664 65.3 872 183 183 689 74 74 18............ -4 ll 680 -696 65.0 898 218 218 680 83 83 25............ 5 86 769 -850 83.4 920 151 151 769 53 ............5..3 33 others 1968—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 Sept. 4............ 32 90 856 -914 15.7 1 ,884 1,028 732 1,152 296 939 90 849 11............ 60 201 1 ,406 -1 ,547 26.8 2,245 839 698 1 ,547 141 1,108 90 1 ,018 18............ 3 116 1 ,853 -1 ,965 33.7 2,664 811 727 1 ,937 84 1,200 68 1,132 25............ 2 127 1,456 -1 ,581 27.3 2,236 780 643 1 ,593 137 1,008 2 1,006 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

OCTOBER 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. 13 3 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Sept. 30 date rate Sept. 30 date rate Sept. 30 date rate Boston............................................. 5 *4 Aug. 27, 1968 % 5% Aug. 27 1968 6 Aug 27 1968 New York...................................... 5*4 Aug. 30’ 1968 5% Aug. 30’ 1968 6 63^ Aug 30* 1968 7 Philadelphia.................................... 5>/4 Aug. 23, 1968 514 5% Aug. 23, 1968 6 61/4 Aug^ 23^ 1968 614 Cleveland........................................ 514 Aug. 23, 1968 514 5% Aug. 23 1968 6 6% Aug 23 1968 7 R A i t c la h n m ta o . n .. d ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 51 ^ 4 A A u u g g . . 1 30 9 ' , , 1 1 9 9 6 68 8 5 5 % % 5 5 % % A A u u g g . . 3 19 0 * ’ 1 1 9 9 6 6 8 8 6 6 6 6 % ^ A A u u g g ' 3 19 0 * ' 1 1 9 9 6 6 8 8 6 4 Chicago........................................... 5% Aug. 23, 1968 5’A 5% Aug. 23 1968 6 6*4 Aug' 23* 1 968 6'4 St. Louis.......................................... 5*4 Aug. 30, 1968 5>A 5% Aug. 30’ 1968 6 6*4 614 Minneapolis.................................... 5>/4 Aug. 16, 1968 5% sy. Aug. 16, 1968 6 6-/4 Aug. 16; 1968 614 Kansas City.................................... 5'/4 Aug. 23, 1968 5‘A 5% Aug. 23, 1968 6 61/4 Aug. 23, 1968 614 Dallas............................................. 5’4 Aug. 28, 1968 5*4 5% Aug. 28 1968 6 6*4 6 A San Francisco................................. 5% Aug. 30; 1968 5'4 5’4 Aug. 30’ 1968 6 61/4 Aug. 30, 1968 61/4 1 Discounts of eligible paper and advances secured by such paper or 2 Advances secured to the satisfaction of the F.R. Bank. Maximum by U.S. Govt, obligations. Rates shown also apply to advances secured maturity: 4 months. by obligations of Federal intermediate credit banks maturing within 6 3 Advances to individuals, partnerships, or corporations other than months. Maximum maturity: 90 days except that discounts of certain member banks secured by U.S. Govt, direct obligations. Maximum matu­ bankers’ acceptances and of agricultural paper may have maturities not rity: 90 days. over 6 months and 9 months, respectively, and advances secured by FICB obligations are limited to 15 days. FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level) Bank Effective (or level)— Bank Effective (or level)— Bank date all F.R of date all F.R. of date all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941........ 1 -iy 1 1955—Cont. 1960 Sept. 9............................ 2 -21/4 June 3............................. 314-4 4 1942 13............................. 2% 10................... 314-4 3^ i 1 Nov. 18............................. 214-214 14................... 314 Oct 15............ .. t 14-i 1 23............................. 214 Aug. 12......................... 3 -314 3 30................................. t 14 114 Sept. 9............................. 3 3 1956 1946 Apr. 13............................. 214-3 2’4 Apr. 25.....................T.. ..1..4..-.1.. . 1 20................... 2/4-3 2% 1963 i 1 2^-3 3 July 17............................. 3 -314 31............................. 3 3 ' 26............................. 314 1948 Jan. 12................................. 1 -iy 1^ 1957 19....................... l'/4 Aug. 9.....................3.. ....-.3. 14 3 1964 t‘/4-l>/ ^ 23... 314 3*A Nov. 24....................3..1..4..-..4 4 23................................ I >4 Nov. 15............................. 3 -314 3 30............................. 4 4 Dec. 2............................. 3 3 1950 Aug. 21................................. U4-iy 1958 1965 25....................... 11/4 1% Jan. 22.....................2../.4...-.3. 3 Dec. 6.....................4.. ....-..414 414 24............................. 2r3 ? 13............................. 414 414 1953 Mar. 7............................. 214-3 Jan. 16............................... U4-2 2 13............................. 214-214 214 23..................... 2 2 21............................. 214 21/4 1967 Apr. 18............................. iy-214 13/4 Apr. 7......4.. ....-.4...1..4.. .........4 1954 May 9............................. 1% 13/4 U..........4......... 4 Feb, 5......................1.../.4..-.2. 11/4 Aug. 15............................. 114-2 13/4 Nov. 20......4.. ....-.4..1...4.. .........4/4 15.............................. 1% 1% Sept. 12........................... l3/4-2 2 27......................... 414 41$ Apr. 14.............................. u$-iy 11/4 ‘ 23............................. 2 2 16............................... i!4-i y 1^ Oct. 24............................. 2 -214 2 May 21.............................. 114 Nov. 7............................. 214 214 1968 Mar. 15.....................4...1..4..-.5 414 1955 1959 22................... 5 5 Apr. 14.............................. ii4-i y U4 Mar. 6....................2..1..4..-.3. 3 5 -514 514 ‘ 15............................... ii4-iy 1/4 16............................. 3 3 26................... 514 514 May 2.............................. iy iy May 29............................ 3 -314 314 514-514 514 1/4-21/4 n/4 June 12......................... 314 314 Aug. 30............................. 5‘/. 5/4 i y-21/4 2 Sept. 11............................. 314^ 4 12............................... 2 -21/4 2 18............................. 4 4 In effect Sept. 30.............. 5% 5'% t Preferential rate of one-half of 1 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, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, Note.—Discount rates under Secs. 13 and 13a (as described in tabic 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; 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 □ OCTOBER 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 J b C re a e c s n n i e k t t r y r s v a e l 3 b s R a c e i n r t e v y k ­ e s C ba o t n r u y k n s ­ b cl a ( a o n 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 S 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........ 3 1614 5 12 34 34 5 Sept. 8, 15........ 6 1951—Jan. 11,16............... 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2.............. 3ft 3ft 1953—July 9,1................. 22 19 13 Mar. 16.............. 3 3 1954—June 2< 16............... 21 5 July 29, Aug. 1.... 20 18 12 1968—Jan. 11,18........ 1614 17 12 1214 1958—Feb. 27, Mar. 1.... 19ft 17ft lift Mar. 20, Apr. 1.... 19 17 11 In effect Sept. 30, 1968.. 16'4 17 12 12ft 3 3 6 18ft Apr. 24..................... 18 16ft Present legal 1960—Sept. 1..................... 17ft requirement: Nov. 24..................... 12 Minimum.................. 10 7 3 3 3 Dec. 1.... .............. 16ft 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 I960 1962 1963 1968 1968 Regulation T: For credit extended by brokers and dealers on: Listed stocks........................................................ 70 50 70 90 70 50 70 70 80 Listed bonds convertible into stocks.................. 50 60 For short sales......................................................... 70 50 70 90 70 50 70 70 80 Regulation U: For credit extended by banks on: Stocks....................................................... 70 50 70 90 70 50 70 70 80 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 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

OCTOBER 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 L 12 e s m s o th n a t n h s 1 o 2 r m m o o n r t e h . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 4 3’/2 4 314 }4 4 Ot M he u r lt t i i p m le e d m e a p t o u s r i i t t s y : : 2 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; | 54 Single-maturity: 6 months to 12 months................. 4’4 Less than $100,000.............. 54 5 5 90 days to 6 months..................... 2^ $100,000 or more: Less than 90 days......................... 1 4 30—59 days........................ 54 (30-89 days) 60-89 days............................ 5 4 90-179 days.......................... 54 54 6 180 days and over................ 64 i Closing date for the Postal Savings System was Mar. 28, 1966. Max­ Note.-—Maximum rates that may be paid by member banks as estab­ imum rates on postal savings accounts coincided with those on savings lished by the Board of Governors under provisions of Regulation Q; deposits. however, a member bank may not pay a rate in excess of the maximum 2 For exceptions with respect to certain foreign time deposits, see rate payable by State banks or trust companies on like deposits under Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, the laws of the State in which the member bank is located. Beginning p. 167. 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 All Item m b e a m nk b s er Y N o e r w k C O it f y Other C b o a u n n k t s ry Item m b e a m nk b s er Y N o e r w k C o it f y Other (C ba o n u k n s try City Chicago City Chicago Four weeks ending July 17, 1968 Four weeks ending Aug. 14, 1968 Gross demand—Total.... 165,890 36,553 7,106 59,322 62,910 Gross demand—Total... 162,969 35,225 6,958 58,485 62,302 Interbank.................. 18,997 7,248 1,292 8,180 2,278 Interbank...................... 18,270 6,863 1,262 7,958 2,188 U.S. Govt.................. 4,968 1 ,111 228 1 ,830 1,800 U.S. Govt..................... 5,365 1 ,227 290 2,061 1 ,787 Other......................... 141,926 28,194 5,587 49,313 58,832 Other............................ 139,335 27,135 5,407 48,467 58,326 Net demand t................... 127,461 23,899 5,286 45,492 52,784 Net demand i.................. 127,486 23,522 4,299 45,827 52,838 Time.................................. 152,872 19,387 5,633 58,256 69,597 Time................................. 155,815 20,013 5,905 59,423 70,475 Demand balances due Demand balances due from dom. banks...... 8,966 415 421 2,034 6,096 from dorn. banks........ 8,596 369 436 1,961 5,830 Currency and coin............ 4,459 359 81 1,370 2,649 Currency and coin.......... 4,429 349 76 1 ,345 2,658 Balances with F.R. Balances with F.R. Banks........................... 21,515 4,740 1 ,087 9,027 6,661 Banks........................... 21 ,713 4,717 1,117 9,184 6,696 Total reserves held.......... 25,974 5,099 1,168 10,397 9,310 Total reserves held.......... 26,142 5,066 1,193 10,529 9,354 Required........................ 25,517 5,059 1,165 10,344 8,950 Required....................... 25,786 5,033 1,186 10,473 9,094 Excess............................ 457 40 3 53 360 Excess........................... 356 33 7 56 260 1 Demand deposits subject to reserve requirements arc 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 □ OCTOBER 1968 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1968 1968 1967 Sept. 25 Sept. 18 Sept. 11 Sept. 4 Aug. 28 Sept. 30 Aug. 31 Sept. 30 Assets Gold certificate account................................................. 10,026 10,026 10,026 10,026 10,026 10,026 10,026 12,510 Cash................................................................................. 313 315 309 321 333 316 332 357 Discounts and advances: Member bank borrowings......................................... 1,565 355 115 445 537 390 529 74 Acceptances: 49 49 51 52 52 47 51 52 Bought outright...................................................... 39 104 Held under repurchase agreements........................... Federal agency obligations-—Held under repurchase 9 agreements.............................................................. U.S. Govt, securities: Bought outright: 18,472 16,462 17,019 18,863 18,768 18,794 19,111 14,097 BUjs .................................................................. Certificates—Special. . . ............................. Other......2..8..,.2..0..5............2..8..,.2..0..5............2.8,205 28,205 28,143 28,312 28,205 26,198 Notes.................................................................«... 5,728 5,728 5,728 5,728 5,707 5,733 5,728 6,621 Bonds....................................................................... 52,405 50,395 50,952 52,796 52,618 52,839 53,044 46,916 440 52,405 50,395 50,952 52,796 52,618 53,279 53,044 46,916 54,019 50,799 51,118 53,293 53,207 53,764 53,624 47,146 Total loans and securities.............................................. Cash items in process of collection............................. 8,162 9,535 8,074 7,401 7,279 *>7,548 r6,996 6,758 Bank premises................................................................ 113 113 113 113 113 115 113 111 Other assets: Denominated in foreign currencies....................... 1 ,271 1 ,288 1,254 1,102 1 ,094 1 ,281 1 ,055 788 IMF gold deposited i............................................ 230 230 230 230 230 230 230 233 All other................................................................. 456 416 397 364 322 480 337 424 Total assets..................................................................... 74,590 72,722 71,521 72,850 72,604 *>73,757 r72,713 68,327 Liabilities F.R. notes....................................................................... 42,384 42,562 42,793 42,738 42,414 42,346 42,396 39,617 Deposits: Member bank reserves.............................................. 22,432 19,974 19,836 20,854 21 ,060 *>21,233 r21,822 20,686 U.S. Treasurer—General account............................. J ,027 668 21 1 ,041 999 1 ,036 916 778 Foreign....................................................................... 134 125 129 149 132 192 127 117 Other: 230 230 230 230 230 230 230 233 IMF gold deposit1.................................................. 258 All other.................................................................. 221 216 230 218 229 255 233 Total deposits................................................................. 24,044 21,213 20,446 22,492 22,650 *>22,946 r23,328 22,072 Deferred availability cash items..................................... 6,373 7,215 6,359 5,743 5,730 6,605 5,145 5,044 Other liabilities and accrued dividends......................... 374 367 387 394 376 411 389 261 Total liabilities............................................................... 73,175 71 ,357 69,985 71,367 71,170 *’72,308 r7l,258 66,994 Capital accounts Capital paid in................................................................ 619 619 618 618 618 619 618 589 598 598 598 598 598 598 598 570 Other capital accounts................................................... 198 148 320 267 218 232 239 174 Total liabilities and capital accounts........................... 74,590 72,722 71,521 72,850 72,604 *’73,757 r72,713 68,327 Contingent liability on acceptances purchased for foreign correspondents.................................... 125 123 126 138 149 124 149 205 U.S. Govt, securities held in custody for foreign account................................................................. 7,639 7,384 7,594 7,848 7,436 7,777 7,590 7,558 Federal Reserve Notes—Federal Reserve AEents' Accounts F.R. notes outstanding (issued to Bank)..................... 45,439 45,425 45,359 45,214 45,110 45,470 45,197 42,374 Collateral held against notes outstanding: Gold certificate account....................................... 4,118 4,118 4,118 4,118 4,118 4,118 4,118 6,727 U.S. Govt, securities................................................. 42,516 42,416 42,416 42,291 42,291 42,651 42,291 37,081 Total collateral............................................................... 46,634 46,534 46,534 46,409 46,409 46,769 46,409 43,808 1 Sec note 1(b) to table at top of p. A-73. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ FEDERAL RESERVE BANKS A-13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON SEPTEMBER 30, 1968 (In millions of dollars) Phila­ Kan­ San Item Total Boston New del­ Cleve­ Rich­ Atlan­ Chi­ St., Minne­ sas Dallas Fran­ York phia land mond ta cago Louis apolis City cisco Assets Oold certificate account...................... 10,026 408 2,084 656 847 946 546 1 ,878 496 209 341 390 1 ,225 F R notes of other banks.......... 927 90 210 62 64 82 90 50 31 36 31 41 140 Other cash............................................ 316 20 35 8 43 19 43 50 30 3 21 15 29 Discounts and advances: Secured by U.S. Govt, securities.... 380 105 21 6 5 41 118 8 11 6 11 48 Other................................................. 10 10 Acceptances: Bought outright............................ 47 47 Heid under repurchase agreements.. 39 39 Federal agency obligations—Held under repurchase agreements...... 9 9 U.S. Govt, securities: Bought outright............................ 52,839 2,748 12,706 2,712 4,075 3,948 2,880 8,714 1 ,891 1,063 2,191 2,277 7,634 Helcfunder repurchase agreements.. 440 440 Total loans and securities................... 53,764 2,853 13,262 2,718 4,075 3,953 2,931 8,832 1 ,899 1,074 2,197 2,288 7,682 Cash items in process of collection... 10,249 632 1,766 587 790 783 813 1 ,775 512 334 732 570 955 Bank premises...................................... 115 3 10 2 5 10 19 18 9 3 18 9 9 Other assets: Denominated in foreign currencies.. 1,281 63 1329 68 115 67 81 187 44 29 56 73 169 TMF gold deposited 2...................... 230 230 All other........................................... 480 25 115 24 37 36 31 76 17 11 21 20 67 Total assets........................................... 77,388 4,094 18,041 4,125 5,976 5,896 4,554 12,866 3,038 1,699 3,417 3,406 10,276 Liabilities F.R. notes...................................... 43,273 2,501 9,851 2,463 3,496 3,974 2,329 7,736 1 ,601 745 1 ,628 1 ,508 5,441 Deposits: Member hank reserves............... 21,233 813 5,563 998 1 ,500 968 1 ,316 2,976 794 555 923 1 ,228 3,599 U.S. Treasurer—General account.. 1 ,036 67 171 68 76 99 60 70 92 51 119 52 111 Foreign..................................... 192 6 395 7 12 7 8 19 5 3 6 7 17 Other: TMF gold deposit F . . ................ 230 230 All other....................................... 258 1 216 * 10 1 2 * 1 1 1 25 Total deposits....................................... 22,949 887 6,275 1,073 1,588 1 ,084 1 ,385 3,067 891 610 1,049 1 ,288 3,752 Deferred availability cash items.......... 9,306 615 1,437 492 736 730 729 1 ,778 482 303 662 513 829 Other liabilities and accrued dividends 411 20 109 22 29 29 21 66 14 19 17 17 58 Total liabilities , ................... ■ 75,939 4,023 17,672 4,050 5,849 5,817 4,464 12,647 2,988 1,667 3,356 3,326 10,080 Capital accounts Capital paid in..................................... 619 30 158 32 55 32 39 92 21 14 27 36 83 Surplus.................................................. 598 29 154 32 54 31 38 87 20 14 26 34 79 Other capital accounts......................... 232 12 57 11 18 16 13 40 9 4 8 10 34 Total liabilities and capital accounts.. 77,388 4,094 18,041 4,125 5,976 5,896 4,554 12,866 3,038 1,699 3,417 3,406 10,276 Contingent liability on acceptances purchased for foreign correspond­ ents................................................ 124 6 UI 7 11 6 8 18 4 3 6 7 17 F.R. notes outstanding (issued to Bank)............................................ 45,470 2,603 10,379 2,547 3,769 4,154 2,471 8,013 1 ,680 783 1 ,720 1 ,612 5,739 Collateral held against notes out­ standing: Gold certificate account.................. 4,118 330 500 300 600 600 350 1 ,000 206 77 ...........1.55 ............ U.S. Govt, securities....................... 42,651 2,301 10,000 2,500 3,300 3,600 2,200 7,150 i ,570 725 1,775 1 ,530 6,000 Total collateral..................................... 46,769 2,631 10,500 2,800 3,900 4,200 2,550 8,150 1,776 802 1 ,775 1,685 6,000 1 After deducting $952 million participations of other F.R. Banks. 3 After deducting $97 million participations of other F.R. Banks. 2 See note 2 to table at top of p. A-73. 4 After deducting $93 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 □ OCTOBER 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 1 year 1-5 years Month Exch., c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G 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 e s ­ s s G sa r l o e s s s m re s a d h t o e i u r f m r ts i p t , y ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o u i c f r r t h i s . t y tions 1967—Aug............. 591 440 400 591 440 400 -1,225 1,338 Sept............ 1,110 623 127 919 623 127 24 121 44 Oct.............. 700 27 200 700 27 200 Nov............ 1 ,386 168 1,200 168 -1,227 121 ..1 227 Dec............. 622 250 622 250 169 -73 1968—Jan.............. 1,488 1,593 20 1,410 1,593 20 52 Feb............. 967 770 100 917 770 100 50 7,658 -8,497 Mar............. 1,550 567 305 1,212 567 305 51 208 Apr............. 1,761 982 167 1,651 982 167 58 41 May........... 1,168 784 1 ,098 784 10 -3,566 41 -73 June. 1,894 289 1,693 289 54 308 88 -308 July............ 404 409 65 404 409 65 Aug............. 1,111 140 87 1,028 140 87 14 -4,778 24 142 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal acceptances (U.S. Govt, Net agency 5-10 years Over 10 years securities) change obliga­ Month in U.S. tions Under Net c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E s t r u h x r i m c i f t h t y s a . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s G s i o t e i c v e u s t. r­ p ( m a n u g e r e r c t n e h t r e s a e ­ ) s ­ e r O i n g u e h t t t ­ , a r m c e g h n p e r a e e n u s e t t r e s ­ ­ , change * 1967—Aug.... — 113 450 450 -249 -14 -263 Sept.. .. 27 - 44 19 453 453 361 -12 104 453 Oct....... 1,427 1,427 474 1 -104 370 Nov.... 45 20 1 ,369 1 ,046 1 ,541 23 5 1,570 Dec.,. , -96 545 736 182 15 16 89 302 1968—Jan....... 21 5 1 ,136 1,031 -20 -38 -12 -69 -139 Feb.. . . 839 968 1,205 -140 -7 -20 -166 Mar.... 64 15 657 596 739 57 -1 35 830 Apr.. . . 8 3 1 ,832 1,627 815 -45 2 -5 766 May... 18 3,638 1 2,488 2,753 119 -12 -1 -30 75 June... 50 10 1,560 1,560 1 ,605 3 75 1 ,683 July.... 1,145 908 166 -2 -32 132 Aug.. . . 34 4,637 12 2,497 2,734 647 -5 -43 599 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) Pounds Belgian Canadian Danish French German Italian Japanese Nether­ Swiss End of period Total sterling francs dollars kroner francs marks lire yen lands francs guilders 1967~Junc.............................. 578 399 29 3 1 144 1 1 * 2 July............................... 579 566 4 3 1 2 1 1 2 Aug.............................. 866 761 3 3 1 94 1 1 * 3 Sept............................... 788 754 13 3 1 13 1 1 * 3 Oct................ 953 898 3 1 46 1 1 * 3 Nov.............................. 1 307 1,140 19 3 1 140 1 1 * 2 Dec............................... I ,604 1,140 45 3 1 413 1 1 * 2 1968—Jan................................ 1 ,470 1,142 45 253 1 25 1 1 3 Feb................................ 1 389 1'152 50 253 1 27 1 1 4 Mar............................... 1 ,542 1 J 97 50 253 1 33 2 1 2 4 Apr............................... 1 ,536 I ,195 50 256 1 26 2 2 4 May.............................. 1 ,926 1 ,544 50 256 1 67 2 1 2 4 June.............................. i ;oo9 503 52 132 25 101 134 1 1 57 4 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 Sept. 25 Sept. 18 Sept. 11 Sept. 4 Aug. 28 Sept. 30 Aug. 31 Sept. 30 Discounts and advances—Total.................................... 1 ,565 355 115 445 537 390 529 74 Within 15 days............................................................ 1 ,555 348 112 440 531 387 523 71 16 days to 90 days...................................................... 10 7 3 5 6 3 6 3 91 days to 1 year........................................................ Acceptances—Total....................................................... 49 49 51 52 52 86 51 156 Within 15 days............................................................ 10 15 16 16 18 53 16 115 16 days to 90 days.................................................... 39 34 35 36 34 33 35 41 91 days to 1 year........................................................ U.S. Government securities—Total............................. 52,405 50,395 50,952 52,796 52,618 53,288 53,044 46,916 Within 15 days 1......................................................... 2,426 1 ,218 580 2,205 2,652 1,840 1,494 964 16 days to 90 days...................................................... 14,737 14,130 14,954 14,997 14,553 15,574 15,549 13,962 91 days to 1 year........................................................ 16,600 16,405 16,776 16,952 16,839 17,150 17,359 15,662 Over 1 year to 5 years................................................ 7,902 7,902 7,902 7,902 7,879 7,934 7,902 14,910 Over 5 years to 10 years............................................ 10,141 10,141 10,141 10,141 10,107 10,186 10,141 883 Over 10 years.............................................................. 599 599 599 599 588 604 599 535 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 accounts’ 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 t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th S 2 e 6 A r ’s SM T 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 l . 2 . ) 3 ’s 2 SM o 2 th 2 S e 6 A r ’s 1967—Aug.............................. 7,067.8 3,185.7 1,575.0 3,882.1 2,307.1 59.0 128.5 56.6 41.1 34.6 Sept.............................. 6,799.4 2,952.4 1,513.6 3,847.0 2,333.4 57.4 120.6 55.4 40.8 35. 1 Oct............................... 6,993.0 3,102.4 1,537.7 3,890.6 2,352.9 58.3 125.5 54.6 40.8 35. 1 Nov.............................. 6,997.7 3,100.8 1,557.8 3,896.9 2,339.1 58.4 130.2 55.7 41.2 34.8 Dec.............................. 7,047.0 3,149.7 1 ,515.4 3,897.3 2,381 .9 58.5 122. 1 54.6 41.1 35.3 1968—Jan............................... 7,369.4 3,323.4 1 ,584.8 4,046.0 2,461.2 60.2 128.5 55.6 41.6 36.0 Feb............................... 7,263.9 3,216.8 1 ,593.3 4,047.1 2,453.8 59.8 129.2 56.9 42.1 36.1 Mar.............................. 7,218.7 3,197.9 1,601.6 4,020.8 2.419.2 59.3 128.2 56.5 41.6 35.7 Apr.............................. 7,500.7 3,285.5 1,673.5 4,215.2 2,541.7 59.7 126.7 57.4 42.3 36.2 May............................. 7,614.0 3,370.6 1,722.0 4,243.4 2,521.4 61 .0 129.5 58.8 43.0 36.1 June............................ 7,948.5 3,595.0 1 ,771 .0 4,353.5 2,582.5 62.4 131.4 59.5 43.4 36.6 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 Sept.............................. 8,368.4 3,857.8 1 ,840.2 4,510.6 2,670.4 64.7 144.7 61.3 43.8 36.7 1 Excludes interbank and U.S, Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For a description of series, see Mar. 1965 Bulletin, p. 390. All data shown here are revised. For description of revision, see Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-16 U.S. CURRENCY □ OCTOBER 1968 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir* culation 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939..................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941..................... 11,160 8J20 751 695 44 1,355 2 731 21545 3'044 724 1,433 261 556 24 46 1945..................... 28^515 20,683 1 274 1 039 73 2,313 6’782 9,201 7 834 2,327 41220 454 801 7 24 1947..................... 28,868 20,020 1,404 1,048 65 2,110 6’275 9,119 8,850 2,548 51070 428 782 5 17 1950..................... 27’741 19'305 1 ’554 1,113 64 2'049 5’998 8,529 8,438 21422 51043 368 588 4 12 1955..................... 31’158 22’021 1,927 1,312 75 2’ 151 6.617 9.940 9,136 2,736 51641 307 438 3 12 1958..................... 32 193 22^856 2,182 1 494 83 2'186 6 624 lb’288 9,337 2,792 51886 275 373 3 9 1959..................... 32,591 23,264 2,304 1,511 85 2,216 6.672 10,476 9,326 2,803 5,913 261 341 3 5 I960..................... 32'869 23’521 2’,427 1’533 88 2'246 6’691 16’, 536 91348 21815 5’,954 249 316 3 10 1961..................... 33^918 24*388 2'582 1*588 92 2,313 6 878 101935 9,531 21869 6’,106 242 300 3 10 1962..................... 35,338 25'356 2,782 1,636 97 2^375 7,071 111395 9,983 21990 6,448 240 293 3 10 1963..................... 37'692 26’807 3'030 1,722 103 2'469 7’373 121109 10,885 3*221 71110 249 298 3 4 1964..................... 39,619 28,100 3,405 1^806 111 2’517 7’543 121717 111519 31381 71590 248 293 2 4 1965...................... 42’056 29 842 4 027 1 908 127 2*618 7'794 131369 12 214 3 540 8,135 245 288 3 4 1966...................... 44 663 31,695 4,480 2 051 137 2,756 8 070 141201 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 14,476 13,094 3,724 8,844 238 281 3 4 Aug........... 45 071 31,884 4,720 1 878 136 2'628 8 001 141521 13,186 31749 81911 238 281 3 4 45 031 31,795 4*752 1 886 136 2,621 7’949 14 451 13,236 3 751 81959 238 281 3 4 Oct........... 45 421 32 095 4.803 1 913 136 21658 8’613 141572 13,325 3’.766 9’,031 238 283 3 4 Nov........... 46’463 32^937 4,865 1 1965 136 2,748 8,266 14,957 13,524 3,832 9J63 239 283 3 4 47,226 33 468 4 918 2 035 136 2^850 8,366 15,162 13,'758 31915 9,311 240 285 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........... 45,846 32,284 4,969 1 ’895 136 2,'665 8,000 14.619 13.563 3,820 91213 239 284 3 4 46,’297 32’664 5 049 1 857 1 36 2*676 8 094 14 852 13,632 3*840 91261 239 285 3 4 46,621 32,938 5 137 1 875 136 2 684 8 104 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 91430 240 286 3 4 July........... 47’979 33,963 5,385 1 ,871 136 2,720 8,261 15,590 14,015 31971 9,511 240 286 3 4 Aug........... 48,353 34,238 5,449 1 ,863 136 2,728 8,309 15,753 14,115 3,999 9,581 240 287 3 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury, KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Held by Total out­ F.R. Kind of currency standing As security For Banks 1968 1967 Au 1 g 9 . 6 8 31, g a o s g l i d a lv in e a r n s t d Tre ca a s s h ury B F a a . n n R d k . s A a g n e d n ts Aug. 31 July 31 Aug. 31 certificates Agents Goki................................................................................ 10,367 (10,026) 2 342 Gold certificates............................................................. (10,026) 310,024 1 Federal Reserve notes.............................................. 45,196 104 2,801 42,291 41,982 39,573 Treasury currency—Total.............................................. 6,724 (...........) 331 332 6,061 5,996 5,498 Standard silver dollars............................................... 485 .................. 3 .................. 482 482 482 Silver certificates......................................................... (...........) 386 Fractional Coin.......................................................... 5,607 .................. 313 328 4,967 4,904 4,239 United States notes.................................................... 323 15 4 303 302 305 In process of retirement 4.......................................... 310 309 309 87 Total—Aug. 31, 1968..................................................... 5 62,288 (10,026) 776 10,024 3,135 48,353 July, 31, 1968..................................................... 5 61 ,926 (10,026) 803 10,024 3,120 47,979 Aug. 31, 1967..................................................... 5 61,895 (12,889) 1 ,476 12,498 2,849 45,071 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ Tor 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

OCTOBER 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 o u m r p re o n n c e y n t c D o d m e e m p p o o a s n n i e d t n t jus a t d ed ­ 1 Total c C om ur p re o n n c e y n t c D o d m e e m p p o o a s n n i e t d n t jus a t d ed ­ 1 d d e e p m os a i n ts d 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—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 7.2 183,4 41 1 142.2 186.7 182.0 40.7 141 .2 187.7 6.6 Apr.................................................. 184.3 4L4 143.0 187.1 185.6 41.1 144.5 187,9 4.2 May................................................. 186.1 41.6 144.5 187.6 182.5 41.3 141.1 188.4 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 J’............................................... 190.2 42.5 147.7 193,8 186.8 42.6 144.3 194.3 5.5 Sept, ”.............................................. 189.3 42.6 146.7 196.7 188.5 42.6 145.8 196.3 5.8 Week ending—- 1968—Aug. 7.......................................... 190.4 42.2 148.1 192.4 188.3 42.6 145.7 193.0 5.7 14............................................ 189.7 42.5 147.1 193.3 187.3 42.8 144.5 194.1 4.8 21........................................... 190.4 42.6 147.8 194.0 186.0 42.7 143.4 194.6 5.9 28........................................... 190.2 42.7 147.5 194.6 185.6 42.4 143.2 195.2 5.9 Sept. 4^......................................... 190.3 42.7 147.6 195.2 187.7 42,7 145.0 195,6 4.2 113’......................................... 190.2 42.6 147.5 195.8 189.4 43,1 146.3 195.8 3.3 18 2’........................................ 188.7 42.7 146.0 196.9 189.2 42.7 146.5 196.1 5.0 25 k........................................ 188.6 42.6 146.0 197.4 186.7 42.4 144.4 196.7 8.5 1 At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection l l l e e e N t t t i i i n n o n , , t , p e p p . p — p p . . . F A 1 6 o 3 - 7 r 9 0 9 3 2 r - - — e 8 1 v 9 6 A i ; , s - e a 9 d n 7 d s . e F r f i o o e r s r m d b a e o t g n a i n th n f l o i y n r g d 1 a 9 J t a 5 a n 9 . - 1 6 9 2 1 4 , 9 7 6 s - 3 5 e ; e 8 , s e A s e e u e J g J u u u n s n t e e 1 1 1 1 9 9 9 6 6 6 7 8 4 B B B u u u l l l­ ­ ­ r a b b U e n a a n . d n n S c k k . y F s s G . . o R o o u . v t T t h s t f i . e i l m d o r E e a e f t t f ; h t e d h a ( c e e 2 n t p i ) v T o e f t s r h o i e J r o t a u e s s s i n e g u a e n r d d y 9 j d u , u , e e s F 1 m t 9 e . t R a 6 d o n 6 . d , a d B b r o b e a a m a l n l a e k a t n i s n s m c t , c i e c e e s a s n c a d a d o c e t c m p u v F o m m a . s R u i e u t l r . s t l c s a B i t a a e o a l t d f n k b a f a s a o l l l ; l n r k a c c p s n o o a d m m y a m ( m m n 3 e d e ) e n r r c c t c t u i i h o a a r e l f l ­ Averages of daily figures. Money supply consists of (1) demand personal loans were reclassified for reserve purposes and arc excluded from deposits at all commercial banks other than those due to domestic com­ time deposits reported by member banks. AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Member bank reserves 1 re D se e r p v o e s r it e s q s u u ir b e j m ec e t n t t o s 2 Member bank reserves1 re D se e r p v o e s i r t e s q s u u ir b e je m c e t n to ts 2 Period Total r N o b w o o r e n ­ d ­ qu R ir e e ­ d Total sa T a v i n i m n d g e s de v P m a r t a i e ­ n d d G e U m o . v a S n t . , d Total r N o b w o o r e n ­ d ­ qu R ir e e ­ d Total sa T a v i n i m n 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 1 19.8 115.2 4.0 1966—Dec....... 22.90 22.29 22.60 244.6 129.4 111.7 3.5 23.47 22,91 23.08 247.1 127,9 116.1 3.0 1967—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....2..5...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 1 19.7 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 25.69 283.6 157,1 121.7 4.8 Sept,,... 26.40 25.95 26.16 288.0 159,0 123.7 5.3 26.32 25.84 26.03 286,9 158.7 123.1 5.1 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 □ OCTOBER 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 s r o t e i a n n u n g c t d ­ y ­ Total n L e o t a 1 n , s , 2 Total s C a a v o n i m n d g l. s R F B e e a s d n e e r k r v a s e l Other3 O r s i e t t i h c e u e s r ­ 2 ca a n p n e i d t t a l, c d u e r a p r n o e d s n i c ts y c m o n a u i e c s n t ­ c t . s , banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107 086 81,199 22,559 3,328 10,723 188 148 175 348 12 800 1950—Dec. 30................... 22;706 4^636 171^667 60^366 96,560 72,894 20^778 2,888 14,741 199*008 184 384 14*624 1963—Dec. 20................... 15,582 5,586 333,203 189,433 103,273 69 068 33,552 653 40 497 354 371 323 251 31118 1966—Dec. 31................... 13,159 6,317 422,676 261,459 106,472 60,916 44,316 1 240 54,745 442*152 400*999 41*150 1967—Sept. 27................... 13,000 6,800 451,200 272,000 112 600 64,500 46,700 1 400 66,600 470 900 424 400 46 600 Oct. 25................... 13^000 6,800 454^700 272^400 115’000 66 600 47;100 1 200 67 300 474 500 428 300 46,200 Nov. 29................... 12,900 6,800 458,300 273.000 117,100 67,300 48’,500 1 ,300 68,100 478,000 431500 46,500 11 982 6,784 468,943 282,040 117 064 66 752 49 112 1 200 69 839 487 709 444 043 43 670 1968—jan# 3i................... 12 000 6 800 466,300 279 100 116 900 66 600 49 100 I 200 70 400 485 100 439 800 45 300 Feb. 28................... 11,900 6,800 466', 300 277,700 117 600 67,600 48 800 1 ’200 71*100 485*000 439*300 45*700 10’500 6 800 468'000 279’300 116*300 65,600 49.500 1 200 72 300 485’200 439*200 46 000 Apr. 24 r................ 10,500 6,800 469,900 282’300 114 400 64 100 49 300 1 000 73 200 487’100 440 800 46,400 May 29 r................ 10,400 6,800 472 400 283’100 116 300 64,700 50 500 1 100 72 900 489 500 441*300 48 200 June 29................... 10'367 6,708 479 ,'667 289,920 115,818 62 809 52 230 779 73 *929 496 742 447*839 48 901 July 31 T................ 10,400 6,700 484,600 292’300 117,900 64,700 52,400 800 74*400 501'700 451*700 50,000 10'400 6,700 485,500 291,100 118’400 65 700 52'600 100 76 000 502’600 451 700 50 900 Sept. 25”................ 10,400 6,700 492,400 295,400 119,200 66,800 52,400 100 77^800 509^500 45?:500 52,000 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 r b u C e a t n u n s c i k r d y ­ s e d ju m e s p a t a o e d 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 e d n d s ­ d i t s 5 Total b m C a e n o r k c m s ia ­ l 1 b M sa a v n u i k t n u s g a s l 6 S P t a S e o v y m s i s t n a ­ 3 g l s e n i e g t n , 7 h c i u n o a r g l s y d h s ­ s b a c a a v 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 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1963—Dec. 20.... 153,100 31,700 121,400 158,104 33,468 124,636 155,713 110,794 44,467 452 1,206 392 6,986 850 1966—Dec. 31.... 170,400 37,600 132,800 178,304 39,003 139,301 213,961 158,568 55,271 122 1 ,904 1,176 5,238 416 1967—Sept. 27.... 176,600 38,600 138,000 175,500 38,700 136,800 237,500 178,300 59,200 1 ,900 1 ,500 7,300 711 Oct. 25.... 177,200 39,100 138,100 177,900 39,000 138,900 239,100 179,800 59,300 1 ,900 1 ,500 6,900 900 Nov. 29.. . . 178,300 39,000 139,300 180,700 39,700 141,000 240,500 180,900 59,600 1 ,900 1 ,500 5,200 1 ,800 Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 ......2..,.1...79 1 ,344 5,508 1 ,123 1968—Jan. 31 .. .. 180,600 40,000 140,600 183,000 39,400 143,600 245,200 184,500 60,700 1 ,900 1 ,400 7,200 I ,200 Feb. 28. . 179,300 39,900 139,400 178,400 39,400 139,000 247,300 186,300 61,100 2,000 1 ,300 9,400 900 Mar. 27 . 182,600 40,200 142,400 180,000 39,800 140,200 249,500 187,800 61,700 2,000 1,100 5,700 1 ,000 Apr. 24 r. . 182,400 40,400 142,000 182,400 40,000 142,400 249,300 187,600 61,700 2,000 1,100 4,400 1 ,600 May 29 r. . 183,200 40,800 142,400 181,400 41,100 140,300 250,500 188,500 62,100 2,100 1 ,000 5,400 1,000 June 29.. .. 186,700 40,800 145,900 186,562 42,261 144,301 251,913 189,144 62,769 2,154 838 5,298 1 ,074 July 31 '. , 186,800 41,300 145,500 186,600 41,400 145,200 254,800 192,100 62,700 2,200 800 6,100 1,100 Aug. 28 r. . 186,400 41,300 145,100 184,700 41,500 143,200 257,800 194,900 63,000 2,000 800 5,300 1 ,000 Sept. 25 ”, . 186,500 41,400 145,100 185,300 41,500 143,800 259,500 196,100 63,400 ............ 2,100 800 8,900 1,000 1 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits June 1961, also includes certain accounts previously classified as other lia­ accumulated for payment of personal loans” were excluded from “Time bilities. deposits” and deducted from “Loans” at all commercial banks. These 7 Reclassification of deposits of foreign central banks in May 1961 re­ changes resulted from a change in Federal Reserve regulations. These hy­ duced this item by $1,900 million ($1,500 million to time deposits and $400 pothecated deposits are shown in a table on p. A-23. million to demand deposits). 2 See note 2 at bottom of p, A-22. 3 After June 30, 1967, Postal Savings System accounts were eliminated Note.—For back figures and descriptions of the consolidated condition from this Statement. statement and the seasonally adjusted series on currency outside banks 4 Series begin in 1946; data are available only last Wed. of month. and demand deposits adjusted, sec “Banks and the Monetary System,” 5 Other than interbank and U.S. Govt., less cash items in process of Section 1 of Supplement to Banking and Monetary Statistics^ 1962, and collection. Bulletins for Jan. 1948 and Feb. 1960. Except on call dates, figures 6 Includes relatively small amounts of demand deposits. Beginning with are partly estimated and are rounded to the nearest $100 million. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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-— Cla a s n s d o d f a b te ank Total Loans G U o S .S v ec t . . urit O ie t s h 2 er a C ss a e s t J s i J c b c T o i a a l l a u o p i i n c t n t i a i d - t a e t - a s l s l ^ Total 3 m D I a n e n t ­ e d rba T n i k m ^ e U. D S. e ma O O n t d t h h e e r r T 1 i m , 5 e B r i o n o w g r s - ­ c c T o a a o p u c i t n t ­ a a t l s l N ba b u o n e m f k r s ­ Govt, All banks: 1941—Dec. 31....... 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31............... 140,227 30,361 101,288 8,57735,415 177,332 165,612 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 6611,948 14,714 1966—Dec. 31.............. 381,684266,022 60,91654,74570,085464,376407,637 19,770 968 4,999 167,821 214,078 4,92936,926 14,271 1967—Sept. 27.............. 409,200278,140 64,50066,56062,300484,480422,660 17,040 1,530 7,020 159,300237,770 6,47038,160 14,244 Oct. 25.............. 412,380278,430 66,63067,32062,300487,590425,670 17,170 1,430 6,680 161,030239,360 6,14038,650 14,236 Nov. 29.............. 415,110279,740 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 66,75269,839 78,924517,374455,501 21,883 I ,314 5,240 184,139242,925 5,84639,371 14,223 1968—Jan. 31.............. 421,940284,980 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 67,55071,070 65,660502,570437,630 16,920 1 ,370 9,060 162,640 247,640 7,27039,590 14,219 Mar. 27 r............ 423,870285,950 65,61072,31064,860502,940436,290 16,710 1 ,280 5,320 163,180249,800 8,15039,670 14,218 Apr. 24 r............ 427,760290,460 64,14073,16064,740506,710438,830 17,340 1,230 4,040 166,630249,590 8,93039,870 14,215 May 29r 429,790292,180 64,69072,92065,980509,920439,590 17,340 1,100 5,060 165,260250,830 9,70040,220 14,221 June 29.............. 434,415 297,677 62,80973,92976,293 525,856456,87420,638 1 ,095 4,977 177,930252,234 8,19640,885 14,224 July 31 r............ 440,760301,620 64,74074,400 70,540526,100454,140 19,170 1 ,310 5,800 172,690255,170 10,15040,850 14,219 Aug. 28r”.......... 443,320301,640 65,68076,00067,930525,720451,330 18,020 1,350 4,970 168,800258,19011 ,13041,030 14,221 Sept. 25"'............ 450,010305,470 66,79077,75070,550535,340459,410 19,250 1 ,410 8,540 170,400259,810 11,66041 ,270 14,221 Commercial banks: 1941—Dec. 31.....5.0,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31.............. 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 3I<"............ 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 56,16348,77269,119403,368 352,287 19,770 967 4,992 167,751 158,806 4,85932,054 13,767 1967—Sept. 27.............. 345,780227,430 60,09058,26061,300418,910363,390 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 ,47777,928451,012395,008 21 ,883 1 ,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Jan. 31.............. 356,970233,010 62,23061,73066,830436,580378,96017,470 1 ,320 6,920 168,490 184,760 6,82034,420 13,717 Feb. 28.............. 357,750232,420 63,15062,18064,760434,980376,490 16,920 1,370 9,060 162,550 186,590 7,27034,520 13,717 Mar. 27r............ 357,910233,570 61,20063,14063,950434,870374,490 16,710 1 ,280 5,320 163,100 188,080 8,15034,600 13,716 Apr. 24r............ 361,660237,990 59,84063,83063,870438,550377,080 17,340 1 ,230 4,040 166,550187,920 8,93034,810 13,714 May 29r............ 363,110239,300 60,32063,49065,100441,150377,460 17,340 1,100 5,060 165,180 188,780 9,70035,110 13,720 June 29.............. 367,560244,580 58,60464,37675,334456,827 394,00420,638 1 ,094 4,970 177,837 189,465 8,131 35,774 13.723 July 31’’............ 373,480248,370 60,53064,58069,610456,670391,33019,170 1,310 5,800 172,610 192,440 10,150 35,740 13,717 Aug. 28 r”.......... 375,550248,050 61,48066,02067,020455,820 388,280 18,020 1,350 4,970 168,720 195,220 11,130 35,850 13,719 Sept. 25"............ 381,840251,680 62,54067,62069,640465,040395,96019,250 1 ,410 8,540 170,320 196,440 11,66036,090 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. 31.............. 97,846 32,628 57,914 7,30432,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966-—Dec. 31.............. 263,687 182,802 41 ,924 38,96060,738334,559291,063 18,788 794 4,432 138,218 128,831 4,618 26,278 6,150 1967—Sept. 27.............. 281,993 189,870 45,00347,12054,477346,853299,334 16,162 1,377 6,318 130,683 144,794 6,141 27,233 6,095 Oct. 25.............. 284,341 189,676 46,96747,698 54,470349,107301,584 16,284 1,275 6,051 132,075 145,899 5,808 27,575 6,086 Nov. 29............... 285,700 190,515 47,091 48,09454,809350,888 302,689 16,082 1,189 4,356 134,283 146,779 6,45627,734 6,083 Dec. 30.............. 293,120196,849 46,95649,31568,946373,584326,033 20,811 1,169 4,631 151,980147,442 5,37028,098 6,071 1968—Jan. 31.............. 290,389 194,262 46,57949,548 59,102360,773 311,534 16,668 1,170 6,313 138,263 149,120 6,427 28,142 6,064 Feb. 28.............. 290,844193,582 47,35449,90857,129358,945 309,012 16,112 1,223 8,094 133,136150,447 6,825 28,188 6,060 Mar. 27.............. 290,527 194,303 45,51050,714 56,437 358,402 306,703 15,917 1,129 4,707 133,587 151,363 7,655 28,250 6,049 Apr. 24.............. 293,281 197,820 44,285 51,17656,320361,004308,156 16,534 1 ,083 3,438 136,258 150,843 8,58428,424 6,046 May 29.............. 294,364 198,874 44,733 50,757 57,415 363,139 308,378 16,574 955 4,282 135,242 151,325 9,073 28,706 6,041 June 29.............. 297,630203,016 43,361 51,253 67,130376,904322,990 19,644 934 4,126 146,470 151 ,816 7,68429,139 6,039 July 31 '............ 303,009206,378 45,057 51,57461 ,854376,785 320,310 18,229 1,146 4,988 141 ,559 154,388 9,763 29,160 6,026 Aug. 28”............ 304,669205,850 45,898 52,921 59,497375 ,766317,186 17,088 1 ,193 4,181 138,031 156,693 10,68429,240 6,021 Sept. 25”............ 309,985 208,917 46,755 54,31361,846383,685 323,730 18,275 1 ,246 7,468 139,166 157,575 11,19229,415 6,021 Mutual savings banks: 1941—Dec. 31.............. 10,379 4,901 3,704 1,774 793 11,804 10,533 .......... 6 10,527 1,241 548 1945—Dec. 31.............. 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 7 1 ,592 542 1947—Dec. 31«............ 18,641 4,944 11,978 1 ,718 886 19,714 17,763 1 3 14 17,745 1,889 533 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—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 29.............. 66,855 53,097 4,205 9,553 959 69,029 62,870 1 7 93 62,769 65 5,111 501 July 31.............. 67,280 53,250 4,210 9,820 930 69,430 62,810 80 62,730 5,110 502 Aug. 28r............ 67,770 53,590 4,200 9,980 910 69,900 63,050 .......... 80 62,970 5,180 502 Sept. 25"............ 68,170 53,790 4,250 10,130 910 70,300 63,450 80 63,370 5,180 502 .......... 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 □ OCTOBER 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 1 a ,2 ns G U o . v S t . . Oth 2 er a C ss a e s t h s 3 c c b o a i a l a l u p i n i c a n t i d i ­ t ­ e t a s s l ' ’ Total 3 m D a e n ­ d Time U. D S. ema O n t d her Time1 r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s N ba b u o n e m f r k s ­ Govt. Reserve city member banks: New York City:7 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—Sept. 27.................. 49,435 36,981 5,599 6,855 13,206 65,951 52,050 5,311 816 1,686 24,50619,731 1 ,688 5,680 12 Oct. 23.................. 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 14,57.3 68,783 52,747 6,135 530 749 26,506 18,827 2,586 5,944 12 June 29.................. 51,361 39,544 5 ,046 6,771 20,633 75,544 59,329 8,034 513 823 31,125 18,834 2,283 6,022 12 July 31................. 53,429 40,718 5,675 7,03616,643 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 Sept. 25p................ 54,905 40,729 6,191 7,985 16,669 75,060 56,259 6,776 691 2,198 27,136 19,458 3,605 6,108 12 City of Chicago:?*8 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—Sept. 27.................. 12,249 9,065 1,574 1 ,610 2,791 15,556 12,986 1 ,230 14 432 5,346 5,964 490 1,224 11 Oct. 25.................. 12,300 8,904 1 ,652 1 ,744 2,623 15,416 12,943 1,224 8 347 5,385 5,979 416 1,234 11 Nov. 29.................. 12,350 8,843 1 ,701 1 ,806 2,560 15,375 12,860 1,156 9 227 5,430 6,038 650 1,225 10 Dec. 30.................. 12,744 9,223 1 ,574 1 ,947 2,947 16,296 13,985 1 ,434 21 267 6,250 6,013 383 1 ,346 to 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 I ,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 1 ,346 9 June 29................. 12,848 9,248 1 ,762 1 ,838 2,647 16,168 12,701 1 ,220 20 93 5,768 5,600 an 1 ,362 9 July 31................. 13,371 9,332 2,071 1 ,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 Sept. 25’’................ 13,334 9,297 2,028 2,009 3,185 17,196 12,760 1 ,223 1 1 181 5,326 6,019 1 ,218 1 ,395 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 51J 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—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 18,04221,820 130,999 113,620 7,247 393 1,679 46,68757,614 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 18,31221 ,950 132,720 113,758 7,311 321 1 ,587 46,851 57,688 4,40710,223 163 June 29.................. 107,654 76,213 13,083 18,358 24,528 136,603 118,123 8,131 300 1 ,400 50,39457,898 3,72010,351 163 July 31'-................ 109,510 77,553 13,468 18,48923,601 137,652 118,508 8,065 437 1 ,881 49,185 58,940 4,26710,407 162 Aug. 28 r................ 110,559 77,479 13,972 19,108 22,161 136,984 117,523 7,759 414 1 ,612 47,725 60,013 4,63810,433 162 Sept. 257'................ 112,559 78,661 14,211 19,687 23,382 140,294 119,750 8,054 448 2,798 48,12660,324 5,43710,445 162 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 19,004131,338 117,749 2,392 69 1 ,474 56,672 57,144 30810,309 5,958 1967—Sept. 27.................. 117,676 72,503 23,904 21,269 16,863 137,318 122,932 2,089 69 1 ,701 54,997 64,076 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 17,186140,289 125,237 2,117 106 1 ,498 56,682 64,834 92310,849 5,898 Dec, 30.................. 122,511 74,995 24,68922,826 20,334 146,052 131 ,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 24,28923,649 17,606 144,949 129,505 2,076 96 1 ,317 57,35968,657 695 11 ,169 5,862 May 29.................. 124,525 76,490 24,338 23,697 17,924 145,493 129,448 1 ,989 96 1 ,777 56,40669,180 1 ,25411 ,193 5,857 June 29................. 125,767 78,011 23,469 24,287 19,321 148,588 132,837 2,258 (02 1 ,811 59,183 69,483 8701 I,403 5,855 July 31'................ 126,699 78,775 23,843 24,081 18,521 148,460 132,772 2,145 96 1 ,744 58,508 70,279 77211,302 5,843 Aug. 28'».............. 127,450 79,184 24,010 24,256 17,956 148,626 1 32,750 2,128 96 1 ,700 57,685 71,141 891 11 ,354 5,838 Sept. 25"................ 129,187 80,230 24,325 24,632 18,610 151,135 134,961 2,222 96 2,291 58,578 71 ,774 93211,467 5,838 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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— b c C a a l l n a l k s d s a a o t n e f d Total Loans Securities as C s a e s ts h 3 b T i a l l o i n i a t t d i a ­ e l s Total3 Interbank 3 Dema O n t d her r B i o n o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l b N a b o u n e f m k r s ­ 1 . 2 G U o .S vt . . Oth 2 er c c o a u a p c n i ­ t t a s l 2 m D a e n ­ d Time U.S. Other Ti 1 m . s e 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 92,975 34,882 61 9,734 13,398 1965—Dec. 31.. 303,593 200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,32529,827 13,540 1966—Dec. 31.. 321,473 217,379 55,78848,307 68,515 401,409 351,438 19,497 881 4,975 166,689 150,306 4,717 31,609 13,533 1967—Dec. 30.. 358,536235,502 62,09460,941 77,348 448,878 394,11821 ,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—June 29.. 365,955 243,993 58,18963,772 74,686 454,398 392,801 20,337 1 ,019 4,951 176,569 189,926 7,913 35,269 13,512 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6.786 1 ,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1965—Dec. 31.. 176,605 118,537 32,34725,720 36,880 219,744 193,860 12,064 458 3,284 92,533 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—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 1968—June 29.. 212,344 143,802 31,627 36,915 44,788 265,497 229,028 12,383 561 2,821 102,093 111,170 5,09720,503 4,742 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 4,411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1 ,918 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1 ,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,360 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,331 1967—Dec. 30.. 85,128 58,513 12,64913,966 22,312 111,188 95,637 6,934 516 1 ,489 45,961 40,736 1 ,892 8,368 1 ,313 1968—June 29.. 86,231 60,159 11,734 14,338 22,342 112,351 94,908 7,261 373 1 ,306 44,37741,591 2,586 8,636 1 ,297 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 1905—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—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 1968—June 29.. 67,390 40,033 14,836 12,521 7,557 76,561 68,866 693 85 824 30,099 37,164 230 6,142 7,474 Noninsured nonmem­ ber commercial: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 3119 1 ,291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 I 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—Dec. 30.. 2,638 1 ,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—June 29.. 2,829 1 ,821 407 602 647 3,652 2,438 300 75 20 1,268 775 217 493 211 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 29,532 30,258 241 5,776 7,617 1967—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 1968—June 29.. 70,219 41,853 15,24213,124 8,204 80,213 71,304 994 160 844 31,368 37,939 447 6,635 7,685 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 □ OCTOBER 1968 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets—• Securities Total Interbank 3 Other b c C a a l n l a l k s d s a a o n te d f Total Lo 1 a * n 2 s G U o .S v . t . Oth 2 er as C s a e s ts h 3 c c b o a i a u l a l p i n i n c a t i d i t ­ t ­ e s a s l 2 Total 3 m D a e n ­ d Time U. D S. e mand 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 e n f m r k s ­ Other Govt, 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. 31.. 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 4J40 330 1967—Dec. 30.. 55,936 45,489 3,111 7,336 881 57,863 52,910 6 42952,474 68 4,237 331 1968—June 29.. 58,178 46,813 3,039 8,325 833 60,128 54,991 6 49254,491 65 4,349 331 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—Dec. 30.. 8,295 6,100 1,169 1 ,026 115 8,499 7,584 20 7,563 749 170 1968—June 29.. 8,677 6,283 1 ,166 1 ,228 126 8,901 7,879 41 7,838 762 170 i See table ,f Deposits Accumulated at Commercial Banks for Payment 8 Beginning with May 13, 1965, Toledo, Ohio, reserve city banks with of Personal Loans'* and its notes on p. A-23. total loans and investments of $530 million and total deposits of $576 2 Beginning June 30, 1966, loans to farmers directly guaranteed by million were reclassified as country banks. Beginning Jan. 4, 1968, a CCC were reclassified as securities, and Export-Import Bank portfolio country bank with deposits of $321 million was reclassified as a reserve fund participations were reclassified from, loans to securities. This reduced city bank. Beginning Feb. 29, 1968, a reserve city bank in Chicago with “Total loans” and increased “Other securities” by about $1 billion. total deposits of $190 million was reclassified as a country bank. "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

OCTOBER 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 Loans 1,2 Totally Loans1,2 U.S. Other 2 U.S. Other2 Govt. Govt. 1959—Dec. 31................................................................ 185.9 107.8 57.7 20.5 189.5 110.0 58.9 20 5 I960—Dec. 31................................................................ 194.5 113.8 59.8 20.8 198.5 116.7 61.0 20.9 1961—Dec. 30................................................................ 209.6 120.4 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—bee. 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................................................................ 310.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967—Sept. 27................................................................ 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 Dec. 30................................................................ 346.5 225.4 59.7 61.4 354.5 230.5 62.5 61.5 1968—Jan. 31r.............................................................. 349.9 227.5 60.0 62.4 350.5 226.5 62.2 61.7 Feb. 28r.............................................................. 353.9 229.2 62.0 62.7 350.9 225.5 63.2 62.2 Mar. 27r.............................................................. 352.5 229.0 59.9 63.6 351.5 227.2 61.2 63.1 355.2 231.4 60.3 63.4 354.7 231.0 59.8 63.8 May 29r.............................................................. 357.3 232.6 61.0 63.6 355.4 231.6 60.3 63.5 June 29r.............................................................. 357.8 233.5 60.4 63.9 361.4 238.4 58.6 64.4 July 31 '.............................................................. 365.9 238.4 63.1 64.4 366.0 240.9 60.5 64.6 370.4 241.1 63.9 65.5 367.9 240.4 61.5 66,0 Sept. 25».............................................................. 374.8 243.8 64.0 67.0 374.6 244.5 62.5 67.6 1 Adjusted to exclude interbank Ioans. Note.—For monthly data 1948-68, see Aug. 1968 Bulletin, pp. A-94 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated —A-97. For a description of the seasonally adjusted series see the follow­ for payment of personal loans were deducted as a result of a change in ing Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. Federal Reserve regulations. 1967, pp. 1511-17, Beginning June 30, 1966, CCC certificates of interest and Export’ Data are for last Wed. of month except for June 30 and Dec. 31; data Import Bank portfolio fund participation certificates totaling an estimated are partly or wholly estimated except when June 30 and Dec. 31 are call $1 billion are included in “Other securities” rather than “Other loans.” dates. DEPOSITS ACCUMULATED AT COMMERCIAL BANKS FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank Dec. 31, June 30, Dec. 30, June 29, Class of bank Dec. 31, June 30, Dec. 30, June 29, 1966 1967 1967 1968 1966 1967 1967 1968 All commercial....................... 1,223 1,272 1,283 1,235 All member (cont.)—• Insured................................... 1,223 1,271 1 ,’283 1,235 Other reserve city......... 370 389 362 347 National member................. 729 ’764 747 744 Country.............................. 571 591 617 598 State member........................ 212 217 232 201 All nonmember...................... 283 291 304 290 All member............................... 941 981 979 945 Insured............................... 282 291 304 290 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, IPC" in the tables on pp. A-24 and A-25. page; and in the tables on pp. A-26—A-29 (consumer instalment Ioans). 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 $268,000 of these deposits on Dec. 31, 1966, $244,000 on See June 1966 Bulletin, p. 808. June 30, 1967, $94,000 on Dec. 30, 1967, and $192,000 on June 29, 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-24 COMMERCIAL BANKS □ OCTOBER 1968 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For Class of lo T a o n t s a l 1 F er e a d l ­ Com­ o p s r u e r c c c a u h r r a r i y t s i i i e n n s g g in f s in ti a T tu n o c t i i . o a n l s Other, U.S s . e G cu o r v it e ie rn s m 6 ent State bank and and funds mer­ Agri- Real to and Other call date invest­ sold, Total cial cul- es­ in­ Other local secuments etc.2 3.4 and tur- To tate di­ 5 govt. ritiess in­ al 5 bro­ vid- Bills secud tr u ia s l ­ k a e n r d s ot T h o er s Banks Others uals3 Total ce a r n t d if i- Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1965—Dec. 31.. 306,060 2,103199,555 71,437 8,212 5,258 3,231 2,158 13,291 49,30045,4685,21559,547 n.a. n.a. n.a.38,655 6,201 1966—Dec. 31.. 323,885 2,544216,405 80,598 8,555 5,821 3,203 2,189 13,30253,95047,943 5,18356,163 n.a. n.a. n.a.41,003 7,769 1967—Dec. 30.. 361,186 4,057233,18088,4439,2706,215 3,780 1 ,902 12,535 58,525 51 ,585 5,65962,473 n.a. n.a. n.a. 50,006 11,471 1968—June 29.. 368,795 4,813241,001 91,427 9,979 4,9503,731 1,94412,193 61,409 54,221 5,97658,603 n.a. n.a. n.a.52,635 11,742 All insured: 1941—Dec. 31., 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31., 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,912 21,526 16,045 51,342 3,873 3,258 1947—Dec. 31., 114,274 .......... 37,583 18,0121,610 823 1,190 114 .......... 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1965—Dec. 31., 303,593 2,064198,045 70,8878,191 5,088 3,172 2,093 13,14849,02645,2905,15559,120 13,134 13,233 33,858 38,419 5,945 1966—Dec. 31., 321,473 2,461 214,918 80,0608,5365,6433,148 2,131 13,148 53,68647,7705,12755,788 12,08013,439 31,53640,761 7,545 1967—Dec. 30., 358,536 3,919231 ,583 87,8709,2506,017 3,719 1 ,848 12,39458,20951,395 5,60662,094 n.a. n.a. n.a.49,737 11,204 1968—June 29., 365,955 4,655239,338 90,873 9,958 4,723 3,668 1 ,881 12,02961,11254,0205,89358,189 n.a. n.a. n.a.52,355 11,417 Member, total 1941—Dec. 31., 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1 ,900 1,05778,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31., 97,846 .......... 32,628 16,962 1,046 811 1 ,065 113 7,130 4,662 83957,914 7,803 4,815 45,295 4,199 3,105 1965—Dec. 31. 251,577 1,861 167,93963,9795,0994,9152,714 2,008 12,475 38,98836,4184,83244,992 9,441 10,10626,367 32,5884,198 1966—Dec. 31. 264,627 2,119181,62472,553 5,31815,3892,660 2,047 12,34942,38437,9254,75741,924 8,567 9,78924,60933,8005,160 1967—Dec. 30. 294,098 3,438194,38979,344 5,702 5,820 3,099 1 ,754 11 ,587 45,52840,4545,19046,956 9,633 13,657 24,61441,5207,795 1968—June 29,. 298,575 4,041 199,92081,9226,081 4,525 3,057 1 ,778 11 ,25947,69742,291 5,46443,361 n,a. n.a. n.a.43,3827,871 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 27217,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 .......... 7,179 5,361 ........ 545 267 93 .......... 111 564 23811,972 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—Dec. 30.. 52,141 415 38,64423,183 133,874 831 914 2,990 3,431 3,099 1 ,285 6,027 1 ,897 1,962 2,303 6,318 737 1968—June 29.. 51,361 556 38,988 24,042 192,976 796 1,015 3,118 3,495 3,197 1 ,309 5,046 n.a. n.a. n.a. 6,034 736 City of Chicago: 1941—Dec. 31.. 2,760 954 732 6 48 52 1 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 .......... 1,801 1,418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 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—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 1968—June 29.. 12,848 192 9,056 5,796 39 355 220 173 1 ,046 693 748 236 1,762 n.a. n.a. n.a. 1 ,564 274 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 35120,196 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 ,99914,354 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 1,96813,040 2,552 2,673 8,222 12,033 1,294 1967—Dec. 30.. 106,086 1 ,219 72,713 30,609 1,311 881 I ,143 578 5,446 16,969 15,0472,14814,667 3,140 3,557 8,312 15,3762,110 1968—June 29.. 108,001 1 ,422 75,138 31,720 1 ,414 758 1 ,206 513 5,196 17,861 15,625 2,30413,083 n.a. n.a. n.a. 16,1772,180 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 1,98320,217 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 20,000 1 ,30722,419 3,791 5,917 13,096 15,4732,985 1967—Dec. 30.. 123,127 1,538 74,07419,8394,332 607 906 100 2,20024,45321 ,554 1 ,51624,689 4,168 7,793 13,147 18,3384,488 1968—June 29.. 126,365 1,871 76,738 20,363 4,610 436 835 77 1 ,89925,64722,721 1 ,61423,469 n.a. n.a. n.a. 19,6074,680 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2 2,266 1,061 10911,318 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 38314,555 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 42714,239 n.a. n.a. n.a. 7,2032,609 1967—Dec. 30.. 67,087 618 38,791 9,099 3,568 395 681 148 948 12,997 11,131 46915,516 n.a. n.a. n.a. 8,4863,676 1968—June 29.. 70,219 772 41,081 9,5063,898 425 674 166 935 13,712 11 ,929 51215,242 n.a. n.a. n.a. 9,2523,871 1 Beginning with June 30, 1948, figures for various loan items are available before 1947; summary figures for earlier dates appear in the shown gross (i.e., before deduction of valuation reserves); they do not preceding table. add to the total and are not entirely comparable with prior figures. Total 5 Beginning with June 30, 1966. loans to farmers directly guaranteed loans continue to be shown net. by CCC were reclassified as “Other securities,” and Export-Import Bank 2 Includes securities purchased under resale agreements prior to June portfolio fund participations were reclassified from loans to “Other se­ 30, 1967—they were in loans, for the most part in loans to banks. Prior curities.” This increased “Other securities” by about $1 billion. to Dec. 1965, Federal funds sold were included with total loans and loans 6 Beginning with Dec. 31, 1965, components shown at par rather than to banks. at book value; they do not add to the total (shown at book value) and are 3 See table (and notes) entitled Deposits Accumulated at Commercial not entirely comparable with prior figures. Banks for Payment of Personal Loans, p. A-23. For other notes see opposite page. 4 Breakdowns of Ioan investment and deposit classifications are not Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 s B F e w R a r . i v n R e th e k ­ . s s r C c e a o n n u i c d n r y ­ b m a w a B n d e n i c a o s t k e l h t ­ ­ i s s c ’ ju m p D s o d a a t s d e e e n i ­ ­ d ­ t d s 8 m D e I s n o t t ­ i e c r ’ ba e F n ig k o n r ­ 9 G U o .S vt . . S g l a o o t n a c v d a t t e l . c C c h o a f e e i e f n e r r f c d d i t s k ­ i ’ ­ s, IPC I b n a t n e k r­ G P U S a o o a n . s S v v d t ­ . a t , l S l g 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 C o a t a u a c p l n ­ i t ­ s etc. ings Total:3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 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—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 15,892 167,6345,77734,384 1968—June 29.. . . 20,846 5,190 15,494147,296 18,632 2,005 4,971 16,284 10,123 151,430 1 ,094 321 16,522 173,857 8,13035,774 All insured: 1941—Dec. 31 ... . 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1 ,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31 .... 15,810 1,829 11,075 74,722 12,566 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1965—Dec. 31 .... 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,32529,827 1966—Dec. 31... . 19,069 5,426 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414 145,7444,71731,609 1967—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 1968—June 29.... 20,846 5,170 14,936 145,782 18,468 1 ,869 4,951 16,198 9,890 150,482 1 ,019 321 16,456 173,1487,91335,269 Member, total: 1941—Dec. 31.... 12,396 1 ,087 6,246 33,754 9,714 671 1,709 3,066 1 ,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31 ... . 15,811 1,438 7,117 64,184 12,333 1,243 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1 ,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1965—Dec. 31... . 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 236 10,041 109,925 4,23424,926 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—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 1968—June 29.... 20,846 3,999 9,218 116,269 17,809 1 ,834 4,127 12,503 9,251 124,716 934 286 13,373 139,1027,68429,139 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 in 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—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 1968—June 29.... 5,013 305 558 18,223 6,709 1,326 824 1 ,203 6,043 23,879 513 89 I ,250 17,4962,283 6,022 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—Dec. 30.... 1 ,105 94 151 4,758 1 ,357 77 267 283 217 5,751 21 602 5,409 383 1,346 1968—June 29... . 926 69 237 4,428 1,160 61 93 277 192 5,300 20 2 509 5,088 811 1 ,363 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 J ,326 2,517 37,572 8,249 343 1 ,633 3,708 1 ,274 44,022 233 57 5r450j 44,204 1,952 9,472 1967—Dec. 30.... 8,618 1 ,452 2,805 39,957 8,985 390 1 ,715 3,542 I ,580 48,165 310 80 5,830 50,2502,55510,033 1968—June 29.... 8,806 1 ,233 2,117 38,667 7,734 397 1 ,399 3.641 1 ,674 45,079 300 117 6,219 51 ,9103,72010,351 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1 ,370 239 8,500 30 31 146 6,082 4 1 ,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31... . 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 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 30810,309 1967—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 55211,005 1968—June 29. .. , 6,101 2,392 6,305 54,952 2,207 51 1,811 7,382 1 ,343 50,458 102 78 5,395 64,608 871 11,403 Nonmember:3 1947—Dec. 31 ... . 544 3,947 13,595 385 55 167 1 ,295 180 12,284 190 6 172 6,858 12 1 ,596 1965—Dec. 31 .... 1,093 6,343 28,367 817 155 635 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—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 1968—June 29.... .....1. .,.1..9..1 6,275 31,027 823 170 844 3,781 872 26,715 160 35 3,149 34,755 447 6,635 7 Beginning with 1942, excludes reciprocal bank balances. that arc included under member banks, see Note, p. 589, May 1964 8 Through 1960 demand deposits other than interbank anil 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 □ OCTOBER 1968 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans 2 For purchasing To financial institutions or carrying securities Loans 1 Total net of Wednesday lo a a n n d s v t a io lu n a ­ C m o e m r­ ­ a T n o d b d ro ea k l e e r r s s To other Banks Nonbank Con­ Valua­ invest­ re­ cial Agri­ Real sumer For­ All tion ments! serves and cul­ estate instal­ eign other re­ indus­ tural U.S. U.S. Do­ Pers, ment govts. serves trial Govt, Other Govt, Other mes­ and se­ se­ se­ se“. For­ tic sales curi­ curi­ curi­ cun­ eign com­ finan. Other ties ties ties ties mer­ cos., cial etc. Large banks— Total 1967 Sept. 6.......... 198,839 139,352 62,238 1,907 1 ,057 3,533 77 2,271 1,330 3,557 5,323 4,393 28,107 16,136 1,138 11,243 2,958 13.......... 199,083 139,370 62,285 1 ,898 1,296 3,542 73 2,281 1 ,326 3,242 5,265 4,421 28,202 16,125 1,138 11,235 2,959 20.......... 201,313 141,396 63,149 1 ,893 1,422 3,719 77 2,308 1 ,336 3,471 5,529 4,566 28,286 16,137 1,133 11,330 2,960 27.......... 201,365 141,648 63,372 1,888 1 ,279 3,535 96 2,337 1 ,342 3,639 5,614 4,571 28,337 16,159 1,126 11,312 2,959 1968 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 68,134 2,023 1 ,764 4,392 108 2,487 1 ,404 4,231 5,107 4,682 30,740 17,741 1 ,082 12,189 3,238 Sept. 4.......... 218,461 153,997 68,182 2,025 1 ,985 4,677 100 2,494 1 ,434 4,359 5,272 4,662 30,760 17,766 1 ,105 12,414 3,238 11.......... 220,530 154,351 68,485 2,028 2,785 4,451 1 (2 2,497 1 ,440 3,696 5,228 4,728 30,844 17,778 1 ,107 12,415 3,243 18.......... 224,114 157,046 69,569 2,026 3,032 4,664 154 2,518 1 ,358 4,450 5,480 4,728 30,935 17,815 1 ,094 12,465 3,242 25.......... 221,098 155,023 69,425 2,018 1,714 4,738 105 2,515 1 ,378 3,706 5,467 4,706 31,018 17,879 1,096 12,499 3,241 New York City 1967 Sept. 6.......... 45,740 34,426 20,919 10 493 2,151 12 652 678 883 1 ,562 1 ,029 3,014 1 ,232 773 1 ,852 834 13.......... 45,410 34,029 20,850 11 502 2,128 12 654 671 708 1 ,465 1 ,026 3,018 1 ,233 761 1 ,824 834 20.......... 46,615 34,915 21,140 11 518 2,288 12 679 666 780 1,657 1 ,100 3,033 1 ,237 759 1 ,869 834 27............. 46,658 35,227 21,255 12 420 2,079 12 695 656 1 ,151 1 ,716 1 ,115 3,031 1 ,237 758 1 ,924 834 1968 Aug. 7.......... 50,406 38,55! 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 1 ,327 705 2,126 942 21.......... 50,260 37,992 22,962 15 883 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 Sept. 4......... 50,661 38,100 22,824 15 920 2,847 16 824 762 776 1 ,516 1 ,205 3,101 1 ,321 734 2,183 944 II.......... 50,949 37,587 22,929 15 819 2,650 16 824 782 506 1 ,488 1 ,205 3,104 1 ,325 737 2,131 944 18.......... 53,064 38,907 23,336 15 1 ,056 2,771 17 840 702 963 1 ,673 1,205 3,116 1 ,324 723 2,1 10 944 25.......... 51,715 38,549 23,279 14 895 2,857 17 827 724 702 1 ,642 1,198 3,142 1 ,328 725 2,143 944 Outside New York City 1967 Sept. 6.......... 153,099 104,926 41 ,319 ! ,897 564 1 ,382 65 1,619 652 2,674 3,761 3,364 25,093 14,904 365 9,391 2,124 13.......... 153,673 105,341 41,435 I ,887 794 1 ,414 61 1 ,627 655 2,534 3,800 3,395 25,184 14,892 377 9,411 2,125 20.......... 154,698 106,481 42,009 I ,882 904 1 ,431 65 1 ,629 670 2,691 3,872 3,466 25,253 14,900 374 9,461 2,126 27............. 154,707 106,421 42,1(7 I ,876 859 1,456 84 1 ,642 686 2,488 3,898 3,456 25,306 14,922 368 9,388 2,125 1968 Aug. 7.......... 165,427 114,865 45,907 2,002 792 1,550 83 (.647 674 2,805 4,093 3,497 27,379 16,230 372 10,127 2,293 14.......... 166,757 115,969 45,785 2,001 1 ,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.......... 166,846 115,159 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 Sept. 4......... 167,800 115,897 45,358 2,010 1 ,065 1,830 84 1,670 672 3,583 3,756 3,457 27,659 16,445 371 10,231 2,294 II......... 169,581 116,764 45,556 2,013 1,966 1 ,801 96 1,673 658 3,190 3,740 3,523 27,740 16,453 370 10,284 2,299 18............ 171,050 118,139 46,233 2,011 1 ,976 1 ,893 137 1,678 656 3,487 3,807 3,523 27,819 16,491 371 10,355 2,298 25.......... 169,383 116,474 46,146 2,004 819 1,881 88 1 ,688 654 3,004 3,825 3,508 27,876 16,551 371 10,356 2,297 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ WEEKLY REPORTING BANKS A-27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments Cash assets U.S. Government securities Other securities Balances with—■ Obligations of States Other bonds, Cash All Notes and bonds and corp, stocks items Cur­ Re­ other Wednesday maturing-— political and in rency serves assets Cer- subdiv. securities Total process and with Total Bills tifi- of coin F.R. cates collec­ Do­ For­ Banks Certif. tion mestic eign With­ I to After Tax All of Other banks banks in 5 yrs. 5 yrs. war­ other partici­ secu­ 1 yr. rants 3 pation* rities Large banks— total 1967 26,822 4,676 5 3,534 13,475 5,132 4,272 24,379 1 ,285 2,729 45,490 22,385 4,229 200 2,565 16,111 8,717 ...........Sept. 6 27,138 5,039 5 3,531 13,422 5,141 4,223 24,422 1,252 2,678 44,242 22,124 4,141 203 2,809 14,965 8,63! ........... 13 27,423 5,278 3,531 13,811 4,803 4,304 24,285 1 ,260 2,645 44,112 21 ,713 4,168 227 2,722 15,282 8,504 ....................20 27,043 5,065 3,541 13,706 4,731 4,387 24,341 1,277 2,669 42,860 20,449 3,842 241 2,807 15,521 8,695 ....................27 1968 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 28,029 3,712 4,859 12,215 7,243 4,781 27,369 1 ,415 2,870 50,644 27,433 4,467 203 2,720 15,821 9,900 ..........Sept. 4 28,908 4,387 4,984 12,237 7,300 5,252 27,719 1,416 2,884 49,839 27,262 4,648 241 2,989 14,699 9,690 .....................11 29,800 5,195 5,059 12,286 7,260 5,178 27,875 1 ,334 2,881 50,538 27,662 4,817 193 2,900 14,966 9,660 .....................18 28,615 3,954 5,179 12,230 7,252 5,172 28,050 1 ,339 2,898 49,109 24,454 4,205 208 2,983 17,259 9,753 ....................25 New York City 1967 5,198 1 ,414 887 1,984 913 l-,269 4,208 69 570 13,381 8,424 183 81 349 4,344 3,166 5,289 1 ,552 904 1 ,920 913 1 ,295 4,153 65 579 12,596 7,756 248 93 350 4,149 3,168 ....................13 5,500 1 ,697 886 2,030 887 1 ,422 4,144 64 570 12,494 7,668 279 106 342 4,099 3,127 ....................20 5,163 1 ,488 877 1,912 886 1 ,494 4,116 61 597 12,875 7,863 287 112 348 4,265 3,211 ....................27 1968 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 1 ,458 1,231 4,651 121 786 16,145 10,797 318 99 342 4,589 3,323 .....................14 5,393 1 ,263 856 1 ,601 1 ,673 1 ,305 4,700 113 757 14,605 9,854 348 96 348 3,959 3,236 ....................21 5,436 1 ,311 832 1 ,589 1 ,704 1 ,334 4,825 115 732 15,967 11,018 294 92 359 4,204 3,330 ....................28 5,459 1 ,338 802 1 ,586 1,733 1,396 4,794 158 754 16,797 11,946 311 100 351 4,089 3,481 5,879 1 ,699 834 1 ,568 1,778 1,693 4,906 113 771 16,449 12,082 250 124 362 3,631 3,367 .....................11 6,617 2,396 809 1 ,618 1,794 1 ,642 5,047 98 753 16,694 12,401 324 88 356 3,525 3,336 .....................18 5,685 1 ,437 797 1 ,643 1 ,808 1,657 4,973 100 751 16,271 11,236 285 106 361 4,283 3,358 ....................25 Outside New York City 1967 21,624 3,262 5 2,647 11,491 4,219 3,003 20,17! 1 ,216 2,159 32,109 13,961 4,046 119 2,216 11,767 5,551 21,849 3,487 5 2,627 11 ,502 4,228 2,928 20,269 1,187 2,099 31,646 14,368 3,893 110 2,459 10,816 5,463 ....................13 21,923 3,581 2,645 11,781 3,916 2,882 20,141 1 ,196 2,075 31,618 14,045 3,889 121 2,380 11 ,183 5,377 ....................20 21 ,880 3,577 2,664 1 1,794 3,845 2,893 20,225 1 ,216 2,072 29,985 12,586 3,555 129 2,459 11,256 5,484 ....................27 1968 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 22,570 2,374 4,057 10,629 5,510 3,385 22,575 1,257 2,116 33,847 15,487 4,156 103 2,369 11,732 6,419 ..........Sept. 4 23,029 2,688 4,150 10,669 5,522 3,559 22,813 1 ,303 2,113 33,390 15,180 4,398 117 2,627 11,068 6,323 ....................11 23,183 2,799 4,250 10,668 5 ,466 3,536 22,828 1 ,236 2,128 33,844 15,261 4,493 105 2,54411,441 6,324 ....................18 22,930 2,517 4,382 10,587 5,444 3,515 23,077 1 ,239 2,147 32,838 13,218 3,920 102 2,622 12,976 6,395 ....................25 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-28 WEEKLY REPORTING BANKS □ OCTOBER 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 Dopolit­ U.S. tic polit­ mcs- TotaD 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 Large banks—- Total 1967 Sept. 6.................... 214.607 112,759 81,557 5,533 2,415 14,468 637 1,503 101,848 48,002 37,439 9,813 1,099 5,032 269 13.................... 213,320 111,521 83,826 5,110 1 ,035 13,812 617 1,554 101,799 48,027 37,406 9,761 1,090 5,052 268 20.................... 215,331 113,917 82,569 5,171 5,061 13,430 667 1,556101,414 48,109 37,087 9,611 1 ,056 5,090 270 27.................... 214,702 113,043 81,444 5,665 5,353 12,846 675 1 ,505 101,659 48,349 37,174 9,542 1,057 5,080 265 1968 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 14,831 639 1 ,710107,609 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 28................... 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 Sept. 4................... 229,695 121,425 88,698 5,843 1,197 15,477 794 1,759 108,270 48,283 43,126 10,925 863 4,537 274 11.................... 230,394 122,049 89,384 5,528 1 ,438 15,973 768 1 ,716 108,345 48,298 43,254 10,894 876 4,492 273 18.................... 233,155 125,111 88,515 5,460 5,917 15,971 741 1 ,645 108,044 48,315 43,137 10,682 887 4,474 291 25................... 230,486 121,834 85,873 5,645 6,207 14,669 711 1 ,715 108,652 48,354 43,439 10,761 885 4,649 300 New York City 1967 Sept. 6.................... 48,906 29,880 18,873 320 579 4,082 495 1 ,031 19,026 4,720 8,930 1 ,053 711 3,386 156 13................... 47,593 28,692 19,337 401 95 3,834 475 1 ,064 18,901 4,720 8,804 1 ,056 706 3,390 153 20.................... 48,882 30,150 19,271 387 1 ,711 3,776 528 1 ,062 18,732 4,724 8,696 996 673 3,418 153 27................... 49,339 30,597 19,421 443 1 ,668 3,881 538 1 ,018 18,742 4,742 8,741 956 669 3,414 147 1968 Aug. 7.................... 51 ,179 32,930 19,959 349 1 ,088 4,986 541 1,218 18,249 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 Sept. 4................... 52,474 34,085 21,606 386 158 4,867 643 1 ,238 18,389 4,572 9,095 1,186 506 2,796 157 11.................... 52,299 33,982 21,410 433 102 5,331 599 1,168 18,317 4,570 9,086 1 ,157 506 2,766 158 18................... 54,139 36,077 21,438 438 2,300 5,541 573 1,137 18,062 4,569 8,924 1,054 508 2,759 174 25.................... 53,318 34,981 20,490 508 2,153 5,170 549 1,194 18,337 4,568 9,064 1 ,104 500 2,834 191 Outside New York City 1967 Sept. 6.................... 165,701 82,879 62,684 5,213 1 ,836 10,386 142 472 82,822 43,282 28,509 8,760 388 1 ,646 113 13.................... 165,727 82,829 64,489 4,709 940 9,978 142 490 82,898 43,307 28,602 8,705 384 1,662 115 20................... 166,449 83,767 63,298 4,784 3,350 9,654 139 494 82,682 43,385 28,391 8,615 383 1 ,672 117 27.................... 165,363 82,446 62,023 5,222 3,685 8,965 137 487 82,917 43,607 28,433 8,586 388 1 ,666 118 1968 Aug. 7.................... 174,447 85,540 64,060 5,426 3,1 17 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 Sept. 4.................... 177,221 87,340 67,092 5,457 1 ,039 10,610 151 521 89,881 43,711 34,031 9,739 357 1,741 117 11.................... 178,095 88,067 67,974 5,095 1 ,336 10,642 169 548 90,028 43,728 34,168 9,737 370 1,726 115 18.................... 179,016 89,034 67,077 5,022 3,617 10,430 168 508 89,982 43,746 34,213 9,628 379 1,715 117 25.................... 177,168 86,853 65,383 5,137 4,054 9,499 162 521 90,315 43,786 34,375 9,657 385 1,815 109 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 n WEEKLY REPORTING BANKS A-29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets— From lia O b t i h li e ti r e s a C cc a o p u it n a t l s lia T b a o i n l t i d a t i l e s T lo o a t n a s l T lo o a t n a s l Demand La o r f g e d e c p e o rt s i i f t i c 1 a 0 tes Wednesday B F a . n R k . s o F t r h o e m rs a c c a c p o i u ta n l t s ad ( ju ne s t t ) e d8 ad ( j n u e s t t ) e d a d d e ju p s o t s e i d ts f and in­ Total Issued I ssued vestments8 issued to IPC’s to others Large banks— 1967 115 6,184 12,052 20,088 253,046 135,795 195,282 73,491 20,610 13,125 7,485 15 6'402 12,137 20'082 251^956 136,128 195*841 74,550 20 437 12’938 7 499 ..........................13 294 6,054 12J99 20,051 253,929 137’925 197,842 73 '713 19,899 12,563 7,336 ............................20 117 5,790 12,239 20'072 252'920 138’009 197,726 74*395 19,897 12,557 7 340 ............................27 1968 397 9,760 16,027 21,470 273,280 149,411 211,828 75,898 r2l ,915 04,083 7 832 ..................Aug. 7 186 10,777 16^244 21,436 275,129 149'444 212^283 75 ,918 r22*161 rl4 205 7*956 ............................14 334 9*978 16^270 21,423 273 ,’525 149,304 213'127 75 *659 r22 234 ’’14'278 7 956 ..........................21 428 9,867 16'523 2! ’450 273’531 148,615 212,744 76,793 r22 288 rl4 264 8’024 ............................28 356 10,727 16,686 21,541 279,005 149,638 214,102 77,318 22,197 14,230 7,967 64 10’491 17^583 21,527 280;059 150,655 216^834 77 ,376 22’155 14*216 7 939 ............................11 292 11,855 17'511 21'499 284^312 152'596 219,664 75 '561 21,833 13'974 7 859 ............................18 1 453 9'354 17’142 21;525 279^960 151,318 217,392 76'504 22 260 14,209 8 051 ............................25 New York City 1967 1,854 6,044 5,483 62,287 33,543 44,857 16,795 7 195 4 634 2,561 2’019 6*079 5 ,483 61’174 33*321 44*702 17,007 7 058 4 473 2 585 ..........................13 1 ,750 6,127 5 ’477 62^236 34’135 45'835 16'995 6,865 4376 2 489 ............................20 1,532 6'398 5375 62'744 34*076 45,507 17'185 6,864 4,368 2,496 ............................27 1968 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 4332 2.154 ..........................14 116 3'380 8'458 5'847 68,101 37*218 49,486 16*290 6,538 4^406 2’132 ............................21 3 3,817 8’626 5,836 69’426 36'880 49,322 16,556 6,530 4,405 2 125 ............................28 180 3,777 8,635 5,873 70,939 37,324 49,885 17,114 6 509 4,409 2 100 4 3’289 9’274 5,899 70*765 37*081 50,443 16,467 6,418 4’353 2,065 ..................... 3’954 9J43 5’858 73 ,'094 37,944 52,101 15,835 6’,214 4*183 2’031 ............................18 390 2'799 8,982 5',855 71'344 37’847 51 ,013 16^422 6,449 4'297 2,152 ............................25 Outside New York City 1967 115 4,330 6,008 14,605 190,759 102,252 150,425 56,696 13 415 8,491 4 924 15 <383 6,'058 14’599 190'782 102^807 151 J 39 57*543 13’379 8,465 4,91 4 ...........................13 294 4’304 6,072 14,574 191,693 103’790 152’,007 56,718 13*034 8,187 4 847 ............................20 117 4^258 5'841 14'597 190,176 103’933 152,219 57^210 13,033 8,189 4,844 ............................27 1968 266 6,542 7,792 15,609 204,656 112,060 162,622 59,395 r15,382 ’9,669 5 ,713 ..................Aug. 7 171 6,460 7,903 15,577 205'937 112’396 163,184 59*977 r15 *575 ’’9,773 5 '802 .......................“ .14 218 6^98 7,812 15,576 205,424 112,086 163’641 59,369 r15 *696 r9,872 5,824 ............................21 425 6,'050 7 ,'897 15'614 204,105 1 11 '735 163*422 60^237 r 15 ,758 r9;859 5 899 ............................28 176 6,950 8,051 15,668 208,066 112,314 164,217 60,204 15,688 9,821 5 867 60 7,202 8,309 15,628 209,294 113,574 166'391 60;909 15’737 9,863 5 ,874 ......................'...11 292 7,901 8'368 15,641 211 718 114,652 167'563 59,726 15’619 9,791 5*828 ............................18 1 ,063 6^55 8’160 15^670 208,616 113371 166’379 60',082 15,811 9'912 5,899 ............................25 i After deduction of valuation reserves. 2 Individual items shown gross. io Certificates of deposit issued in denominations of $100,000 or more. 3 Includes short-term notes and bills (less than 1 year to maturity) issued by States and political subdivisions. * Federal agencies only. Note.—Beginning June 29, 1966, coverage of series was changed from s Includes certified and officers’ checks, not shown separately. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ 6 Deposits of foreign governments and official institutions, central cial Banks (earlier figures for 1966 are comparable with the new series). banks, and international institutions. Also beginning June 29, 1966, detailed breakdown is shown of “All other 7 Includes U.S. Government and postal savings not shown separately. loans,’1 of “Other securities,” and of ownership of time certificates of s Exclusive of loans to domestic commercial banks. deposit in denominations of $100,000 or more. For description of revisions, 5 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 □ OCTOBER 1968 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1968 1968 1968 1968 1967 Sept, Sept. Sept. Sept. Aug. 1st 2nd 25 18 11 4 28 Sept. Aug. July III II I half half Durable goods manufacturing; Primary metals................................. 2,115 2,116 2,091 2,068 2,046 69 37 62 168 309 262 571 287 Machinery....................................... 4,598 4,674 4,510 4,452 4,473 125 -262 159 22 46 240 286 -630 Transportation equipment.............. 1 ,811 1 ,812 1 ,717 1 ,732 1 ,711 100 -112 -33 -45 36 8 44 -136 Other fabricated metal products. . , 1 ,917 1 ,936 1 ,894 1 ,870 1 ,885 32 -58 37 II 150 60 210 -281 Other durable goods........................ 2,250 2,274 2,260 2,240 2,236 14 -14 40 40 194 20 214 -142 Nondurable goods manufacturing; Food, liquor, and tobacco.............. 2,407 2,346 2,194 2,106 2,133 274 54 -158 170 -227 -294 -521 615 Textiles, apparel, and leather.......... 2,404 2,443 2,435 2,430 2,407 -3 89 42 128 202 325 527 -410 Petroleum refining........................... 1,571 1 ,544 1 ,534 1 ,533 I ,537 34 -2 53 85 45 -113 -68 -113 Chemicals and rubber..................... 2,279 2,296 2,253 2,224 2,165 114 -106 -241 -233 55 116 171 -83 Other nondurable goods.................... 1 ,852 1 ,867 1 ,821 1 ,816 1 ,807 45 -6 13 52 58 14 72 95 Mining, including crude petroleum and natural gas................................. 4,595 4,604 4,621 4,612 4,619 -24 -69 -54 -147 61 497 558 164 Trade: Commodity dealers................. 1 ,024 1 ,048 1 ,047 1 ,054 1 ,055 -31 -18 -35 -84 -222 -275 -497 679 Other wholesale....................... 3,211 3,203 3,158 3,143 3,138 73 -28 9 54 91 9 100 96 Retail........................................ 3,470 3,577 3,495 3,492 3,559 -89 -217 46 -260 232 -28 204 6 Transportation..................................... 4,908 4,905 4,877 4,888 4,923 -15 -49 5 -59 405 155 560 428 Communication.................................. 988 983 939 938 937 51 -75 -89 — 113 174 -72 102 4 Other public utilities........................... 2,560 2,468 2,417 2,430 2,423 137 53 161 351 212 -419 -207 258 Construction......................................... 2,839 2,859 2,832 2,801 2,818 21 43 1 65 221 42 263 -103 Services................................................. 5,544 5,552 5,487 5,505 5,490 54 -17 -36 1 374 173 547 221 All other domestic loans..................... 7,311 7,273 7,199 7,135 7,090 221 -203 51 69 459 100 559 356 Bankers’ acceptances.......................... 758 790 784 840 805 -47 -40 34 -53 -272 -120 -392 554 Foreign commercial and industrial 2,536 2,526 2,541 2,549 2,558 -22 1 -34 -55 -101 -48 -149 -112 loans.............................................. Total classified loans........................... 62,948 63,096 62,106 61 ,858 61 ,815 1 ,133 -999 33 167 2,502 652 3,154 1 ,753 Total commercial and industrial loans. 69,425 69,569 68,485 68,182 68,134 1 ,291 -1 ,047 1 245 2,667 695 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 1968 1967 1968 Industry Sept. Aug. July June May Apr. Mar. Feb. Jan. 1st 25 28 31 26 29 24 27 28 31 in II I IV half Durable goods manufactur­ ing; Primary metals.................. 1 ,466 1 ,426 1,393 1 ,339 1 ,199 1 ,185 1,112 1 ,027 908 127 227 238 182 465 Machinery.......................... 2,338 2,294 2,395 2,279 2,188 2,231 2,154 2,064 2,067 59 125 153 38 278 Transportation equipment. 931 910 902 908 944 953 889 849 859 23 19 52 20 Other fabricated metal products...................... 801 798 81 1 759 733 696 692 670 667 42 67 17 4 84 Other durable goods......... 999 1 ,003 1 ,041 1 ,028 1 ,003 991 994 984 1 ,006 -29 34 23 1 1 1 1 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 849 823 804 821 817 813 876 865 818 28 -55 1 18 10 63 Textiles, apparel, and leather......................... 588 575 556 566 556 562 555 524 485 22 I 1 90 44 101 Petroleum refining............. 1 ,228 1 ,235 1,270 1 ,226 1,176 1,152 1,164 1,195 I , 200 2 62 -92 102 -30 Chemicals and rubber....... 1,538 1 ,462 1 ,516 1 ,619 I ,583 1 ,647 1 ,613 I ,544 1 ,538 -81 6 81 (0 87 Other nondurable goods. . 1 ,087 1 ,074 1 ,073 1 ,051 1 ,062 1,072 1 ,061 1 ,049 1 ,048 36 -10 -9 44 -19 Mining, including crude pe­ troleum and natural gas... 3,963 3,984 4,042 4,121 4,152 4,233 4,047 4,014 3,996 -158 74 476 385 550 Trade: Commodity dealers. . 1 12 114 115 113 III 110 115 103 111 -1 -2 8 5 6 Other wholesale........ 585 603 608 634 637 624 585 588 575 -49 49 9 61 58 Retail......................... 1,114 1,106 1,152 1 ,144 1,105 1,119 1 ,098 1 ,093 1,111 -30 46 15 13 61 Transportation...................... 3,673 3,688 3,688 3,703 3,610 3,503 3,503 3,432 3,426 -30 200 160 236 360 Communication..................... 472 452 453 446 432 404 412 409 419 26 34 -31 4 3 Other public utilities............. 1,071 1 ,001 928 815 749 731 710 741 717 256 105 -5 74 JOO Construction.......................... 794 774 779 769 737 737 706 680 686 25 63 24 -1 87 Services.................................. 2,361 2,329 2,324 2,303 2,268 2,243 2,229 2,187 2,163 58 74 108 1 19 182 All other domestic loans. . . . 921 903 942 905 864 877 879 844 871 16 26 6 36 32 Foreign commercial and in­ dustrial loans.................. 1 ,900 1 ,901 I ,918 1 ,934 1 ,953 1 ,971 1 ,976 1 ,981 2,009 -34 -42 -51 -59 -93 Total loans............................. 28,791 28,455 28,710 28,483 27,879 27,854 27,370 26,843 26,680 308 1 ,113 1 ,293 1 ,390 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 Joans 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

OCTOBER 1968 □ INTEREST RATES A-31 BANK RATES ON SHORT-TERM BUSINESS LOANS Size of Ioan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 1968 Percentage distribution of dollar amount Less than 6 50 per cent......... 3.1 7.3 3.5 16.0 2.3 6.7 1.9 4.7 3.6 6.3 3.5 8.1 6.50 per cent................................ 33.9 34.5 6.0 7.3 10.4 11.3 19.4 21.4 31.3 32.2 48.4 47.7 6.51-6.99 per cent....................... 24.5 22.9 11 .4 9.4 14.7 14.0 26.2 24.1 29,2 30.4 25.2 22.6 7,00 per cent................................ 10.6 9.1 13.4 14.0 15.1 16.3 11.8 13.0 9.1 9.0 9.3 5.4 7 01—7.49 per cent...................... 10.5 11.0 20.5 13.6 20.9 18.4 14.8 15.5 9.2 9.6 6.0 7.7 7.50 per cent............................... 6.5 5.3 13.4 11.0 12.1 10.7 9.6 6.2 7.0 5.5 3.2 3.3 7 51—7.99 per cent. ...................... 3.9 3.2 14.0 12.1 9.4 8.5 5.5 5.0 2.8 2.5 1.8 0.9 8.00 per cent................................ 3.2 3.2 7.2 6.4 6.0 4.9 4.5 3.7 3.9 2.9 1.4 2.6 Over 8.00 per cent....................... 3.7 3.7 10.5 10.1 8.7 9.1 6.0 6.0 4.0 2.5 1.2 1.7 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)...................... 3,765.1 4,186.0 56.1 60.1 466.3 485.0 886.8 958.7 524.7 625.5 I,831.2 2,056.7 Number (thousands)............... 36.2 38.5 14.8 15.8 15.1 15.9 4.6 4.9 .9 1.0 .8 .9 Center Weighted average rates (per cent per annum) 35 centers.................................... 6.89 6.84 7.35 7.18 7.27 7.21 7.07 7.00 6.90 6.81 6.70 6.68 New York City..................... • 6,67 6,60 7.30 7.11 7.14 7.07 6.87 6.82 6.69 6.64 6.60 6.52 7 Other Northeast................... 7.16 7.19 7.49 7.21 7,48 7.49 7.28 7.34 7.14 7.10 6.83 6.90 8 North Central....................... 6.96 6.89 7.35 7.30 7.34 7.26 7.21 7.06 7.08 6.90 6.78 6.76 7 Southeast.............................. 6.74 6.61 7.09 6.89 6.96 6.83 6.78 6.65 6.61 6.53 6.54 6.37 8 Southwest............................. 6.86 6.87 7.20 7.16 7.08 7.02 6.91 6.85 6.78 6.72 6.72 6,86 4 West Coast........................... 6.86 6.76 7.73 7.68 7.50 7.37 7.11 6.95 6.78 6.80 6.63 6.54 Note.—Beginning Feb. 1967 the Quarterly Survey of Interest Rates on 1960—Aug. 23 4>/2 1967—Jan. 26-27 5^-5 3/4 Business Loans was revised. For description of revised scries see pp, 721­ 1965—Dec, 6 5 Mar. 27 5W 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 53/4 1968—Apr. 19 6'/i 22, 1960. Changes thereafter to new levels (in percent) occurred on the Aug. 16 6 Sept. 25 6-6 >/. 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 ycar 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 ) ­ 3 Other 6 issues 7 1966........................... 5.55 5.42 5,36 5.11 4.881 4.85 5.082 5.06 5.07 5,17 5.16 1967........................... 5.10 4.89 4.75 4.22 4.321 4.3€ 4.630 4.61 4.71 4.84 5.07 1967—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................ 6.1 8 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 Sept................. 5.82 5.61 5.63 5.78 5.202 5.20 5,251 5.26 5,19 5.40 5.30 Week ending— 1968—Aug. 31.......... 5.88 5,70 5.63 5.93 5.173 5.18 5.242 5.26 5.17 5.39 5.33 Sept. 7........... 5.88 5.63 5.63 5,80 5.194 5.21 5.250 5,22 5.16 5.39 5.30 ‘ 14.......... 5.88 5.63 5.63 5.84 5.246 5.28 5.277 5.31 5.24 5.46 5.36 21.......... 5.80 5.63 5.63 5.68 5.218 5.18 5.248 5.25 5.27 5.39 5.27 28.......... 5.75 5.58 5.63 5.70 5.151 5.13 5.230 5.24 5.19 5.36 5.20 1 Averages of daily offering rates of dealers. 4 Except [or 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 □ OCTOBER 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 (long­ Total 1 term) Total 1 Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 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 3.40 672 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 i’5 70 1967—Sept 4 99 4.14 3.81 4.48 6 00 5.65 6.40 5.93 6.03 6.02 5.41 3 07 5 61 Oct. 5.18 4.25 3.88 4.64 6.14 5.82 6,52 6.05 6.24 6 12 5.59 3.07 Nov 5.44 4.32 3.99 4.66 6.36 6.07 6.72 6.28 6.42 6.39 5.79 3.18 Dec. 5 36 4.42 4.15 4.73 6.51 6,19 6.93 6.39 6.63 6.57 5.95 3.09 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 Juiv. 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 5.09 4.45 4.23 4.78 6.35 5.97 6.79 6,24 6.70 6.27 5.63 3.00 Week ending-— 1968—June I.............................. 5.43 4,78 4.42 5.18 6.64 6.29 7.10 6.52 6.90 6.64 5.96 3.07 8.............................. 5.30 4,65 4.25 5.16 6.64 6,29 7.09 6.52 6.89 6.64 5.89 3.02 15.............................. 5.27 4.65 4.25 5.16 6,63 6,28 7,08 6.53 6.89 6.61 5.93 2.96 22.............................. 5.18 4.53 4.15 4.96 6.63 6.29 7.07 6.56 6.90 6.59 5.90 3.01 29.............................. 5.15 4.54 4.18 4.96 6.61 6.27 7.04 6.55 6.86 6.57 5.87 3.01 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 4.18 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. 3 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 3.08 Sept. 7............................. 5.07 4.47 4,25 4.80 6.33 5.95 6.79 6.23 6.72 6.24 5.59 3.00 14............................. 5.12 4.47 4.25 4.80 6.34 5.95 6.80 6.23 6.70 6.26 5.63 3.02 21............................. 5,08 4.44 4.21 4.78 6,35 5.98 6.79 6.25 6.68 6.29 5.64 3.00 28............................. 5.09 4.41 4.20 4.75 6.37 6.00 6.79 6.26 6.69 6.30 5.65 2.97 .................. Number ofissues 2..................... 9-12 20 5 5 108 18 30 38 30 40 14 500 500 1 Includes bonds rated A a and A, data for which are not shown sep­ Averages of daily figures for bonds maturing or callable in 10 years or arately. Because of a limited number of suitable issues, the number more. State and local govt, bonds: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. Corporate bonds: Averages of daily figures. Both of these 23, 1967, Aaa-rated railroad bonds are no longer a component of the series are from Moody’s Investors Service series. railroad average or the Aaa composite scries. Stocks: Standard and Poor’s Corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. 2 Number of issues varies over time; figures shown reflect most recent Preferred stock ratio is based on 8 median yields for a sample of noncount. callable issues—12 industrial and 2 public utility; common stock ratios Note.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Monthly and weekly yields are computed as follows: U.S. Govt, bonds: adjusted at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 Exchange U.S. total Govt. State Cor- Indus- Rail- Public Indus- Trans- Fi- index 1 (long- and porate Total trial road utility Total trial porta- Utility nance NYSE AMEX term) local AAA tion 1 1 9 9 6 65 6 7 8 8 3 7 6 6 3 1 1 1 0 0 2 '6 6 9 86 3 . . 1 9 8 8 8 5 .2 1 6 7 9 91 3 0 4 9 8 4 46 6 7 3 8 4 7 68 6 0 21 8 4 4 7 6 J 3 9 5 46.19 50 28 45 41 44? 25 1 1 4 2 * 0 6 5 7 6 7 ’5 1 3 7 8 4 2 7 7 1 4 2 1 0 1967 76.55 100 5 81.8 91.93 99.18 46.72 68 10 50.77 51.97 53 51 45 43 49 R2 1967 10'143 4* 508 1967-—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 fl 77.5 90 75 98 33 42.35 65.61 50,68 52.63 45 15 43.36 53. RR 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 loo'53 109 73 51 72 65 21 56. 64 59.83 52 86 43 30 64 60 29 20 IS 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 Aug............... 74* 48 95 9 78.1 98 11 10677 48.80 66 60 55 04 57 59 49 01 44 09 68 19 28 38 10 718 4 778 Sent............... 73 95 9T9 78 4 101 34 110,53 51 JI 66^77 56.80 59.57 51 .' 94 4453 71.77 29'75 13,435 6,542 Week ending-— Aug. 31 ... . 74.28 94,1 78.3 98.84 107,63 49.31 66.46 55.41 58.07 49 J 3 43.99 69.03 28.71 9,649 4,628 Sept. 7........ 74.22 93.7 78.5 100.32 109.36 49.87 66.77 56.17 58.85 49,76 44.71 69.69 29.08 11,213 5,686 14........ 73.67 93.1 78.2 100.84 109.94 50.51 66.90 56.48 59.19 50.93 44.62 70.84 29.50 12,761 6,342 21........ 74.05 94.1 78.6 101.50 110.75 51.01 66.69 56.89 59.68 52.68 44.38 72.07 29.87 14,828 7,169 28........ 73.96 94.7 78.4 102.38 111.73 52.48 66,64 57.45 60.32 53.76 44.39 73.46 30.32 14,891 6,733 1 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 slock 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>4-hour trading day. yields in Cable at bottom of preceding page on basis of an assumed 3 per MORTGAGES: NEW AND EXISTING HOMES (Per cent) Secondary market Contract rate on conventional first mortgages FHA series Yield FHLBB series Period on FHA- (effective rate) insured New Existing U.S, North­ Middle South­ North South­ New New Existing average east Atlantic east Central west West 1963 5.46 5 81 5 81 5 60 5.70 5.79 5.74 6.11 5.87 1964 5.45 5.80 5.65 5.69 5,78 5.74 6.12 5.85 1965 5 47 5 81 5 95 5 83 5 67 5.71 5.78 5.78 6.14 5 89 1966 6" 38 6^25 6*41 6'40 6 01 6.31 6.43 6.52 6.79 6 47 1967 6 55 6,46 6.52 6 53 6'07 6.45 6.60 6.69 6.87 6 57 1967-—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 6.55 605 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 6J0 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 1 5 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 7 17 7 23 7 30 7,10 7 40 7.20 7.15 7.45 7.55 7.35 Aug.......... 7.35 t'7.23 p7 24 7 30 7.10 7 40 7.25 7,05 7.40 7.50 7.35 Sept......... 7.28 7.30 7.15 7 35 7.25 7.05 7.35 7.45 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 arc 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 □ OCTOBER 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 1 2 ances ances brokers period lions of dol­ 1967—Aug................ 5,650 2,260 7,910 6,677 2,281 4,396 30 per 30-39 40—49 50-59 60 per lars) Sept................ 5’790 2,340 8,130 6^944 2,401 4,543 cent per per per cent Oct................ 6^010 2,420 8,430 7,111 2,513 4,598 or less cent cent cent or more Nov................ 6^050 2'440 8,'490 7’200 2’500 4,700 Dec................. 6,300 2'460 8,760 7,948 2,763 5 J83 1967-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 ,’570 7'419 2’778 4,641 Oct.. . . 8.0 58.4 9.9 5.0 18.7 11,550 Mar................ 6,190 2,370 8’560 7'248 2’,692 4*556 Nov.... 10.7 56.4 9.7 5.1 18.2 11,360 Apr................ 6’430 2'350 8'780 7^701 2'979 4*722 Dec.... 19.8 47.9 9.1 4.6 18.7 12,020 May............... 6^640 2,360 9’000 8,268 3,064 5’204 June................ 6’690 2'410 9,100 8,728 3,293 5’435 1968-Jan.. . . 5.3 60.3 11.7 4.6 10.2 11,940 July".............. 6,510 2,420 8'930 8,861 3,269 5^592 Feb.... 4.1 56.8 14.4 5.3 19.4 11,870 Aug.”............ 6,390 2,490 8,880 8,846 2^83 5; 503 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 May... 21.9 45.0 9.4 4.9 18.8 12,820 1 End of month data. Total amount of credit extended by member firms of the N.Y. Stock Exchange in margin accounts, estimated from reports by a sample of 38 firms. 20 or 60 or 2 Figures are for last Wed. of month for large commercial banks re­ less 20-29 30-39 40-49 50-59 more porting weekly and represent loans made to others than brokers or dealers for the purpose of purchasing or carrying securities. Excludes loans col­ lateralized by obligations of the U.S. Govt. June., 0.8 22.1 "47.3 8.5 4.0 17.3 12,590 Note.—Customers’ net debit and free credit balances are end-of-month July",. 1.2 21.3 43.5 10.4 5.1 18.5 12,070 ledger balances as reported to the N.Y.Stock Exchange by all member firms AugJJ. 2.7 25.9 37.9 10.1 4.9 18.6 11,820 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 (20 per cent of current market value during the time period covered in this table); accounts in all classes with higher ratios are restricted. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (Per cent of total debt, unless otherwise indicated) Total Equity class (per cent) SPECIAL MISCELLANEOUS ACCOUNT BALANCES debt (mil­ AT BROKERS, BY EQUITY STATUS OF ACCOUNTS End of lions period of 70 or Under (Per cent of total, unless otherwise indicated) dol­ more 60-69 50-59 40-40 40 lars) 1 Equity class of accounts Net in debit status Total 1967—Aug... 5,650 46,0 32.2 9.4 4.2 8.2 End of period credit balance Sept.. 5,790 52.1 25.6 8.8 3.9 9.6 status 60 per cent Less than (millions Oct.. , 6,010 45,2 30.4 10.1 4.6 9.6 or more 60 per cent of dollars) Nov.. 6,050 43.8 31.8 9.7 4.9 9.9 Dec.. 6,300 50.6 25.8 9.0 4.1 10.5 1967—Aug...................... 47.7 49.3 3.0 5,340 1968—Jan... 6,170 40.6 35.4 9.5 4.4 10.0 Sept...................... 50.7 46.6 2.7 5,610 Feb... 6,150 33.8 38.3 12.0 5.2 10,7 Oct....................... 47.8 49.0 3.2 5,680 Mar.. 6,190 32.1 37.6 14.1 5.3 11,0 Nov...................... 48.8 47.8 3.4 5,490 Apr, . 6,430 48.7 26.4 10.2 4.3 10,4 Dec....................... 50.0 47.0 3.0 5'850 May.. 6,640 51.0 24.9 8.6 4.4 1 1 ,0 (968—Jan........................ 50.8 45.6 3.6 6,060 Feb....................... 51.1 45.0 3.8 6,080 80 or Under Mar...................... 52.5 42.9 4.5 5’820 more 70-79 60-69 50-59 40-49 40 Apr....................... 46.3 47.9 5.8 6,030 May..................... 49.6 46.2 4.1 5j 370 June..................... 50,0 45.7 4.2 6,150 June . 6,690 14.9 33.2 28,8 8.2 4.3 10,6 July...................... 51.7 44,4 3.9 "6,000 July". 6,510 15.4 28.1 30.6 9.5 4.9 11.6 Aug.71................... 49.8 46.4 3.8 5,740 Aug.* 6,390 17,3 28.8 28.2 9.1 4.8 11.8 Note.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional 1 See footnote 1 to table above. purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 ° OPEN MARKET PAPER; SAVINGS INSTITUTIONS A-35 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Held by— Based on—- End of period Accepting banks F.R. Goods stored in or Placed Placed Total Banks p I o m rt ­ s p E o x rt ­ s Dollar shi p p o p i e n d t s b e in tw — een Total through direct­ Others into from ex­ dealers 1 ly 2 Total O bi w lls n bo B u U 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 ta it t e e d s change U S n ta i t t e e s d c F o o u r n e t i r g i n es 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--Aug........... 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 1 ,029 33 134 1 ,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 11,579 4,430 J ,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 1,366 311 134 112 2,364 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 Aug........... 20,734 7,091 13,643 4,418 I ,819 1,474 344 51 149 2,399 1 ,435 932 100 52 1 ,899 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 Other liabili­ Depos­ Other reserve commitments 3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l Co r a a n r t p d e o ­ Cash assets ge a t n i n e e d s ra l its 2 lia ti b e i s li­ co a u c n ­ ts govt. other 1 reserve accts. Number Amount 1941............................. 4,787 89 3,592 1 .7 829 689 11,772 10,503 38 1,231 1945 ................ 4,202 62 10 650 1 606 185 16'962 15,332 48 1,582 I960............................. 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961............................. 28’902 475 6'160 677 5,040 937 640 42’829 38,277 781 3,771 61'855 1.654 1962............................. 32356 602 6,107 527 5,177 956 695 46'121 41,336 828 3357 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.............................. 40328 739 5’791 391 5’099 1,004 886 54'238 48,849 989 4,400 135392 2,820 1965............................. 44’433 862 5 ,’485 320 5,170 1 '017 944 58'232 52'443 1,124 4,665 120,476 2397 1966............................. 47,193 1 ,078 4,764 251 5,719 '953 1 ,024 60^982 55'006 1,114 4,863 88,808 2,010 1967—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................... 49357 1’152 4 J 406 243 8354 '999 1 ,147 65*559 59,066 1 '525 4367 n.a. 2,724 Oct................... 49 327 1,169 4399 228 8’080 959 1,134 65,696 59.257 1 '489 4350 n.a. 2,710 Nov................... 50 346 1,243 4,397 222 8’107 915 1,130 66,061 59,462 1,597 5,002 n.a. 2,684 Dec................... 50,311 1 ’203 4,319 219 9 320 993 1,138 66,365 60,121 1 '260 4,984 n.a. 2 323 1968—Jan.................... 50,705 1,260 4,344 218 8,444 877 1,153 67,002 60,581 1 ,406 5,015 n.a. 2,416 Feb................... 50’902 1 '334 4.405 220 8,672 903 1,156 67,592 60,945 1 ,575 5,071 n.a. 2,400 Mar.................. 51,039 1 '341 4312 229 8’937 914 1398 68,070 61,615 1 ,388 5',067 n.a. 2,477 Apr................... 51’199 1'267 4303 221 9'113 871 1 ,190 68,165 61 354 1,553 5,058 n.a. 2,561 May.................. 51’402 1 ,474 4'374 214 9'213 877 1 ,215 68^68 61,926 1 ,732 5,110 n.a. 2,669 June.................. 51’621 1 '387 4,235 206 9'403 951 1 ,230 69 334 62,411 1 ,503 5,120 n.a. 2,709 July................... 51 369 1 '385 4'213 205 9'616 924 1 318 69,429 62^07 1 306 5,116 n.a. 2,779 Aug.’'............... 52^02 1 ,489 4,203 201 9,778 912 1 317 69,902 62351 1 371 5,180 n.a. 2,829 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 Joans 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 □ OCTOBER 1968 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period 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 I960........................................ 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961......................................... 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962........................................ 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 6,024 1963......................................... 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964......................................... 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965........................................ 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 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—JU|y r........................... 173,069 10,547 4,618 3,003 2,926 72,057 63,740 8,317 66,318 5,036 9,734 9,377 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 9,455 177,201 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 9,543 179,477 10,562 4,582 3,007 2,973 75,760 66,412 9,348 68,055 5,263 10,362 9,475 Apr.............................. 180,411 10,493 4,496 3,016 2,981 76,087 66,661 9,426 68,123 5,303 10,474 9,931 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....................... 182,110 10,360 4,365 3,002 2,993 76,987 67,234 9,753 68,508 5,366 10,729 10,160 July .............. 183,094 10,476 4,400 3,038 3,038 77,602 67,659 9,943 68,708 5,424 10,813 10,071 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 End of assets2— loan period M ga o ge rt s ­ s G e U c o . u S v r . t i , ­ Cash Other 1 lia T b o il t i a ti l e s S c a a v p i i n ta g l s u R n e d a s i e n 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 e m nt m s 4 it­ 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 1960 60,070 4,^95 2,680 4,131 71,476 62,142 4383 2,197 1,186 968 1,359 1961 68’834 5'211 3,315 4’775 82’135 70'885 5,708 2356 1,550 1,136 1,908 1962 78'770 5’563 3’926 5’346 93,605 80'236 6,520 3,629 1 399 1,221 2330 1963 90'944 6345 3379 6’191 107,559 91'308 7’209 5,015 2,528 l',499 2,614 1964 101 333 6'966 4,015 7'041 119355 101,887 7,899 5,601 2,239 1,729 2,590 1965. 110,306 7'414 3,900 7360 129,580 110,385 8 304 6,444 2,198 1 ,849 2,751 1966. 114,447 7'771 3,362 8316 133396 114,009 9,102 7,464 1,272 2,149 1 ,517 1967-—Aug.......... 118,674 8,857 3,127 9,221 139,879 120,677 9,265 4,399 2, (30 3,408 3,443 Sept.......... 119,529 9,017 3,078 9,158 140382 121 ,870 9 355 4382 2,158 3,117 3,337 Oct........... 120,362 9’171 3’040 9,217 141,790 122365 9’256 4,373 2313 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 3 308 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 9,57l 4,735 2,204 2,885 3,128 Feb.......... 122^637 9'775 2,864 9,263 144,539 124317 9367 4,596 2,205 3,454 3,386 Mar......... 123^426 9,968 2,909 9',334 145,637 125 393 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 9,641 147 393 126,455 9,547 4,956 2,586 4,249 3,993 June......... 125,988 9,886 2,972 9,533 148,379 127350 9,860 5,195 2,616 2358 3 362 July r. . .. 126,707 9,764 2,405 9 372 148,348 127 345 9,851 5,277 2,561 3,314 3,918 Aug. >’.... 127,586 9,684 2,359 9,574 149,203 127,734 9,845 5,276 2,464 3,884 3,851 1 Includes oilier loans, stock in the Federal home loan banks, other 4Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding page) would include loans in process. and fixtures. 2 Before 1958, mortgages are net of mortgage-pledged shares. Asset Note.—Federal 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

OCTOBER 1968 □ FEDERALLY SPONSORED CREDIT AGENCIES A-37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (Tn millions of dollars) Federal home loan banks Federal National Mortgage Assn, Banks Federal Federal (secondary market for . intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a A n t e o d c m ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h t s B n a o o n n te d d s s M po b d e s e e m i ­ r t s ­ C s a to p c it k al M l g o a a o g n r e t s ­ D n t a e u o n b r t e d e e s s n ­ c L a o t o o t iv o a p n e e s s r ­ D t e u b re e s n­ c L o a d o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 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 >79 1,531 173 2,707 1,214 1,126 2,752 2 >22 735 505 1,840 1 '727 3,052 2 >28 1963............. 4'784 1'906 159 4; 363 1,151 1,171 2; 000 1 ,788 840 589 2,099 1 '952 3 >10 2,834 1964............. 5,325 1,523 141 4,369 1,199 1,227 1,940 1 >01 958 686 2 >47 21112 3>18 3 >69 1965............. 5'997 1.640 129 5,221 1 ,045 1,277 2,456 1 ,884 1 ,055 797 2,516 2,335 4,281 3,710 1966............. 6,935 2,523 113 6,859 1 >37 1,369 4,266 3,800 1,290 1,074 2,'924 2'786 4,958 4>85 1967............. 4,386 2’598 127 4'060 1>32 1 ,395 5,348 4’919 1'506 1 '253 3>11 3 ,214 5 ’ 609 4,904 1967—Aug... 4,153 3,160 73 4,395 1,344 1,392 4,474 4,049 1,368 785 3,696 3,465 5,404 4,787 Sept... 4,122 2,898 63 4,160 1,318 1,394 4,838 3,927 1 ,384 I ,094 3,523 3,450 5,449 4,787 Oct... 4,114 2,787 81 4,060 1,323 1,393 5,022 4,432 1 ,438 1 ,138 3,460 3,457 5,502 4,871 Nov.. 4,188 2,770 77 4,060 1,347 1,394 5,178 4,543 1.475 1 ,200 3,374 3,259 5,546 4,871 Dec... 4,386 2,598 127 4,060 1,432 1 ,395 5,348 4,919 I ,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 >16 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 I ,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 I ,207 3,940 3,477 5,973 5,214 July. . 4,988 2,463 86 4,700 1 ,189 1 ,406 '6,465 5,550 1 ,454 1 ,291 4,031 3,862 6,004 5,214 Aug... 4,997 2,264 68 4,501 1 ,177 1 ,401 6,502 5,822 1 ,450 1 ,280 3,998 3,871 6,033 5,384 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 n listing of these securities, sec table below. Loans are gross sheet items are capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks. Bonds, debentures, and notes are valued at par. They in­ for other agencies. clude only publicly offered securities (excluding, for the home loan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, AUGUST, 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: Sept. 25, 1968.........5.70 400 Debentures: Oct. 21, 1968...............5.50 407 Ocl. 25,1968.....................5.85 300 Aug. 10, 1971.....................4l/g 64 Dec. 23, 1968....................5.95 247 Feb. 25, 1969....................5.65 300 Sept. 10, 1971.....................4'4 96 Jan. 20,1969.....................4% 341 Apr. 25, 1969......................6% 326 Feb. 10,1972.....................5% 98 Mar. 20, 1969......................4’4 100 May 26, 1969.....................6 300 June 12, 1972.....................4% 100 Apr. 21, 1969....................5.60 250 June 12, 1973.....................4% 146 July 15, 1969......................4% 130 Bonds; Feb. 10, 1977.....................4</2 198 July 15, 1969......................4Y» 60 Nov. 25, 1968......................5% 300 Sept. 22, 1969......................6'4 279 Jan. 27, 1969......................5'4 300 Oct. 20, 1969......................4% 209 Mar. 25, 1969......................5% 300 Jan. 20, 1970......................5'4 209 June 25, 1969....................6.30 550 Banks for cooperatives Feb. 20, 1970......................5% 82 Sept. 25, 1969......................6 400 Debentures: Feb. 20, 1970....................6.30 344 Feb. 25, 1970......................6 200 Oct. 1,1968....................5.80 223 Apr. 1, 1970......................3'4 83 Mar. 25, 1970......................6 200 Nov. 4, 1968....................5.90 216 Apr. 20, 1970....................6.20 362 Apr. 27, 1970......................6 225 Dec. 2, 1968....................6.20 264 July 20,1970......................5'4 85 Jan. 2, 1969....................6.20 224 July 20,1970......................6 241 Feb. 3,1969....................5.65 350 May 1,1971......................3’> 60 Federal National Mortgage Associa­ Feb. 15,1972....................5.70 230 tion—Secondary market opera­ Sept. 15, 1972......................3% 109 tions Federal intermediate credit banks Oct. 23, 1972......................5% 200 Debentures: Feb. 20, 1973-78...............4'4 148 Discount notes................................. 1 .923 Sept. 3, 1968... ........5.80 375 Feb. 20, 1974....................4% 155 Oct. 1J1968....................5.95 423 Apr. 21, 1975....................4% 200 Nov. 4, 1968......................5% '495 Feb. 24, 1976....................5 123 Debentures: Dec. 2, 1968......................5% '460 July 20,1976...................5'4 150 Sept. 10, 1968........................5% 350 Jan. 2, 1969....................5.95 452 Apr. 20, 1978....................5'4 150 Apr. 10,1969.....................4I«O 88 Feb. 3,1969....................6.10 445 Jan. 22, 1979.....................5 285 May 12, 1969........................4'4 300 Mar. 3, 1969....................6.45 428 June 10, 1969.....................6.10 250 Apr. 1,1969......................6% 409 Tennessee Valley Authority July 10, 1969.......................5'4 250 May 1,1969....................5.95 387 Short-term notes......................... 300 Dec. 12, 1969........................6 550 Bonds: Apr. 10, 1970........................4=4 142 Nov. 15, 1985...................4.40 50 June 10, 1970......................6.60 400 Federal land banks July 1, 1986.....................4’4 50 Sept. 10, 1970........................4'/s 119 Bonds: Feb. 1, 1987.....................4'4 45 Oct. 13, 1970.......................534 400 Feb, 15, 1967-72.............4»^ 72 May 15, 1992....................5.70 70 Mar. 11, 1971...................6 350 Oct. 1,1967-70...............4'4 75 Nov., 1992...........................6'4 60 Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. 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A-38 FEDERAL FINANCE □ OCTOBER 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. Bu n d e g t et f T P u r l n u u d s s s : t g I L n o e t v s r s t a . : ­ 1 E r T e q c o u t t a s a l . l s 2 : Budget f T P u l r n u u d s s s : t 3 A m L d e e j n s u t s s s : t 4 ­ E p T q a o u y t a t a s l l s . ; pa o y r t s. & C (d d h a i e i a r g n b n e e t c g n t e . ) a I t g n L r v u b e e e y s s n s t s . s : t & , L N d c e a e o s s b n h s t : ­ Eq N u e a t ls: Cal. year—1965 ............ 96,679 31,384 4,449 123,376 101,379 31,014 4,473 127,919 -4,543 4,673 1,386 417 2,872 1966............ 110,802 40,011 4,792 145,137 118,077 36,791 4,003 150,867 -5,730 13,526 8,396 342 4,788 1967............ 117,708 45,861 6,581 156,300 131,698 38,654 6,779 163,572 -7,272 14,967 7,248 -103 7,822 Fiscal year—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 11 ,874 9,026 2,848^ 1968"........ 153,485 178,892 -25,407 28,428 5,338 23,090 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 18,972< 1968—-Jan.-June7'.... 86,409 92,147 -5,738 7,797 3,680 4,118 Month: ►1967—Aug................ ............ 11,556 15,174 -3,618 5,744 2,094 ........3...,.6..50-4 1968—Jan.................. 12,220 15,453 -3,233 3,044 -919 3,963 Feb.................. ............ 12,087 .............. 14,383 -2,295 5,617 1 ,533 ........4..,.0...84 Mar................. 11,870 14,922 -3,049 -1,776 -428 -1,348 Apr................. 19,045 15,678 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 Aug................ 13,195 16,349 -3,155 4,662 1 ,821 2,841 Effects of operations on Treasurer’s account Net operating transactions Net financing transactions cas C h 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 u e r o d f p i r g l c u e it s t f T un ru d s s t 3 a C c l c e o a u ri n n t g s i M ss s u a e o a r c f k n . 3 e c t e i I n G n s e v o U c e v s . . t S 3 t , , . p d g d u i r i e r b o n e b l s c i t s c t T o r H u e t a e s s l i d u d r e y a T u c r c r e e o a r u ’ s n s ­ t Balance B F a . n R k . s a l T a c o n c a a d t x n s . O a n s 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 2,176-4 ' 1968"... . -25,407 2,736 5,952 -5,338 22,476 1 ,483 -1,065 6,694 1 ,074 4,11:1 1,507 Half ycar: 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 1 ,311 4,272 2,176 July-Dec........ -19.000 -1,239 -63 833 234 18.442 -80 -713 7,046 1,123 4,329 1,594 ►July-Dec........ -19,644 5 562 1,752 -1,658 18,878 578 -713 7,046 1,123 4,329 1,594-4 1968—Jan.-June" . . . -5,738 52,174 4,200 -3,680 3,597 906 -351 6,694 1 ,074 4,113 1 ,507 Month: ► 1967—Aug................ -3 619 3-l ,039 3! -2,094 5,713 -63 -944 6,607 1 ,051 3,937 1,619-4 1968—Jan................. -3,233 5877 1,434 919 1,610 -168 1,775 8,821 1,153 5,977 1,691 Feb................. 295 5-564 100 -1,533 5,516 -313 1,539 10,359 1,197 7,601 1,561 Mar................ 049 =1,473 287 428 -2,063 588 -3,512 6,847 581 4,727 1,539 Apr................. 369 5285 1,357 -514 -2,470 432 1,595 8,442 1 ,035 5,372 2,035 May............... -4,529 5-422 120 -2,634 5,315 -215 -1,936 6,506 956 4,225 1 ,325 June3’.............. 4,006 5533 902 -360 -4,311 582 188 6,694 1 ,074 4,113 1 ,507 July................ 567 5-1 ,020 68 475 3,512 66 401 7,095 1 ,113 4,787 1,195 Aug................ ~3 155 5 -778 1 ,369 -1,821 3,293 251 -1,342 5,753 916 3,564 1 ,273 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ FEDERAL FINANCE A-39 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Total W I i n th d ­ ividual Co ra r t p e o­ Total a L b n i a d q c u c t o o o r ­ H w ig ay h­ Total F R a I n . C R d A . e U m n p - l . E a g s n t i a f d t t e t C o u m s s ­ r m e a I p e n n n a t d . y t s ­ fu R n e d ­ s Other Other held 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 14,114 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 3I6< 1968?’.. 153,485 57,26820,951 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 11,969 1,569 1,258 1,017 1 ,493 1.142 1,835 1967—Jan.-June.. 87,915 25,88014,867 22,873 7,352 3,051 2,339 19,068 16,731 2,088 1,756 955 1 ,250 8,440 2,354 July-Dec... 68,385 27,192 4,150 11,345 7,146 3,344 2,253 14,629 13,056 1 ,333 1,350 1 ,034 1 ,363 1,263 1,439 July-Dec... 67,101 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: ^ 1%7—Aug........... 11,556 5,161 211 642 1,125 487 462 4,016 3,272 627 307 178 159 258 'M 1968—Jan............ 12,220 4,352 3,800 940 1,193 470 366 1 ,829 1,570 119 238 181 180 500 7 Feb............ 12,087 5,801 1,100 650 1 ,081 470 428 4,283 3,378 807 204 158 182 1,403 31 Mar........... 11,870 5,508 697 4,439 1 ,162 369 311 2,257 2,099 51 235 168 175 2,849 78 Apr........... 19,045 4,045 7,687 4,339 1 ,211 574 348 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 June7* 19,476 4,804 2,977 7,412 1,199 n.a. 368 2,791 2,629 44 237 183 205 364 32 July........... 11,706 4,560 605 2,259 1 ,459 n.a. 392 2,412 2,171 115 235 210 204 254 16 Aug........... 13,195 6,200 272 654 1,186 n.a. 491 4,450 3,733 618 232 217 214 250 20 Cash payments to the public Period Total $ t f i N e o d n n e a s ­ a ­ e l af I f n a t i i r , s s S e p r a e a r ­ c c e h A t c u g u re r l­ i­ so N u u r r r e a a c ­ t l e ­ s t m C ra a e o n n r m d s c p e ­ . H c d in o e o g v m u e & l s l . . ­ l H w ab 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...1..5..8.,362 70,092 4,650 5,423 4,377 2,132 7,446 2,285 40,084 4,047 6,898 10,280 2,4544 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 1968—Jam-June7’. 92,083 Ml ,495 Month: ► 1967—Aug.. . 15 174 *6,793 1968—Jan................ 15,453 *7,164 Feb................ 14,383 •6 412 Mar.............. 14,922 *6,363 15,678 •7,091 M ay........ 16,241 •7,191 June"............ 15,470 •7,471 July............... 14,274 *5,895 16,349 *6,746 > Data on new budget basis. Data for any prior entries were derived 3 Includes net transactions of Govt.-sponsored enterprises. on 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 □ OCTOBER 1968 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 Total Total Marketable Nonmarketable End of period gross gross Con­ Special debt 1 d d e ir b e t c t 2 Total Certifi­ v ib e l r e t­ S in a g v s ­ issues 6 Total Bills cates Notes Bonds 4 bonds Total 5 bonds & notes 1941—Dec.................................... 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945—Dec.................................... 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec.................................... 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 ........5..9.....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 1962—Dec.................................... 304.0 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec.................................... 310.1 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec.................................... 318.7 317.9 267.5 212.5 56.5 59.0 97.0 3.0 52.0 49.7 46.1 1965—Dec.................................... 321.4 320.9 270.3 214.6 60.2 50.2 104.2 2,8 52.9 50.3 46.3 1966—Dec.................................... 329.8 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Sept................................... 336.4 335.9 274.7 218.6 63.7 57.6 97.3 2,6 53.5 51.4 57.7 Oct..................................... 341.0 340.5 279.9 223.3 68.9 57.1 97.3 2.6 54.0 51.6 57.2 Nov,............................... 345.6 345.1 284.2 226.1 69.5 61.4 95.3 2.6 55.6 51.7 57.4 Dec.................................... 345.2 344.7 284.0 226.5 69.9 .............. 61.4 95.2 2.6 54.9 51.7 57.2 1968—Jan..................................... 346.8 346.3 286.9 229.3 72.7 61 .4 95.2 2.6 55.0 51.7 55.9 Feb..................................... 352.1 351.6 291.1 233.3 72.9 66.7 93.6 2.6 55.3 51.7 57.2 Mar.................................... 350.0 349.5 289.4 231 .7 71.3 66,7 93.6 2.5 55.2 51.8 56.7 Apr.................................... 347.5 347.0 286.7 228.7 68.6 66.5 93.6 2,5 55.4 51.8 57.0 May................................... 352.9 352.3 289.7 231.8 69.6 .............. 71.1 91.1 2.5 55,5 51.9 59.2 June........................... 348.1 347.6 284.9 226.6 64.4 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 75,4 88.4 2.5 55.5 52,0 60.1 Sept................................... 355.3 354.7 291.9 233.6 69.8 .............. 75.4 88.3 2.5 55,8 52.1 59.7 1 Includes non-interest-bearing debt (of which $640 million on Sept. 30 s Includes (not shown separately): depositary bonds, retirement plan 1968, was not subject to statutory debt limitation) and guaranteed secu­ bonds, foreign currency series, foreign series, and Rural Electrification rities not shown separately. Administration bonds; before 1954, armed forces leave bonds; before 2 Excludes guaranteed securities. 1956, tax and savings notes; and before Oct. 1965, Series A investment 3 Includes amounts held by U.S. Govt, agencies and trust funds, which bonds. totaled $19,238 million on Aug. 31, 1968. 6 Held only by U.S. Govt, agencies and trust funds. * Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. Note.—Based on Daily Statement of U.S. Treasury. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E 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 t U a e r o n n u .S v c d s i . t t e , s B F a . n R k . s Total m C b e a o r n m c k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c a v d a t t e s l . Savi I n n g d s i vidu O al t s her n F a i o t n a i r n t o e e d i n r g a ­ n l 1 O i m t n o t v i h r s e s c e s . r ­ 2 funds bonds securities 1941—Dec............... 64.3 9,5 2,3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945—Dec................ 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947—Dec............... 257.0 34.4 22,6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19,4 2.7 5.7 I960—Dec............... 290.4 55.1 27.4 207.9 62.1 6.3 11.9 18.7 18.7 45.6 20.5 13.0 11.2 1951—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-—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 r24.3 H3.1 18.6 Aug.............. 354,9 79.4 53.0 222.5 61,5 3.9 8.2 14.6 26.8 51.3 24,5 13.2 18.5 1 Includes investments of foreign balances and international accounts Note.—Reported data for F.R. Banks and U.S. Govt, agencies and in the United States. trust funds; Treasury estimates for other groups. 2 Includes savings and loan assns., dealers and brokers, nonprofit institutions, and corporate pension funds. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ U.S. GOVERNMENT SECURITIES A-41 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within I 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 93,396 60,177 33,219 60,602 35,013 8,445 17,148 1966—Dec. 31........................................................ 218,025 105,218 64,684 40,534 59,446 28.005 8.433 16,923 1967—Dec. 31........................................................ 226,476 104,363 69,870 34,493 78,159 18,859 8,417 16,679 1968—July 31........................................................ 230,977 110,824 68,858 41 ,966 64,469 30,754 8,406 16,525 Aug. 31........................................................ 233,167 106,12! 69,366 36,755 64,996 37,143 8,402 16,504 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 2,786 1,573 1,213 3,721 2,512 2,093 3,479 1967—Dec. 31................................................ 16,601 3,580 2,436 1,144 5,202 2,194 2,115 3,513 1968—July 31................................................ 17,254 3,255 2,022 1 ,233 4,910 3,457 2,115 3,516 Aug. 31........................................... 17,140 3,347 2,051 1 ,296 5,095 3,067 2,115 3,516 Federal Reserve Banks: 1965—Dec. 31................................................ 40,768 24,842 9,346 15,496 14,092 1,449 147 238 1966—Dec. 31................................................ 44,282 35,360 12,296 23,064 7,502 1,007 153 260 1967—Dec. 31................................................ 49,112 31,484 16,041 15,443 16,215 858 178 377 1968—July 31................................................ 52,397 38,580 18,497 20,083 7,741 5,488 195 392 Aug. 31................................................ 53,044 34,401 19,110 15,291 7,902 10,141 200 400 Held by public: 1965—Dec. 3!................................................ 160,430 67,198 49,863 17,335 43,349 30,214 6,225 13,444 1966—Dec. 31................................................ 159,152 67,072 50,815 16,257 48,224 24,485 6,187 13,184 1967—Dec. 31............................................... 160.763 69,299 51,393 17,906 56,742 15,807 6,124 12,789 1968—July 31................................................ 161,326 68,989 48,339 20,650 51,818 21,809 6,096 12,617 Aug. 31................................................ 162,983 68,373 48,205 20,168 51,999 23,935 6,087 12,588 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 7,067 21,112 9,343 435 454 1967—Dec. 31......................................... 52,194 18,451 10,415 8,036 26,370 6,386 485 502 1968—July 31......................................... 49,572 15,681 6,407 9,274 23,180 9,706 494 510 Aug. 31........................................ 50,546 15,228 6,133 9,095 23,246 11,035 524 513 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 I ,476 707 267 867 1968—July 31......................................... 3,821 766 427 339 1 ,225 788 245 797 Aug. 31......................................... 3,795 744 384 360 1,211 809 239 792 Insurance companies: 1965—Dec. 31......................................... 8,824 993 548 445 1,938 2,094 1,096 2,703 1966—Dec. 31......................................... 8,158 847 508 339 1 ,978 1,581 1,074 2,678 1967—Dec. 31......................................... 7,360 815 440 375 2,056 914 I ,175 2,400 1968—July 31......................................... 6,958 685 320 365 1,779 1,013 1,139 2,341 Aug. 31......................................... 6,985 672 331 341 1,949 882 1,147 2,335 Nonfinancial corporations: 1965—Dec. 31......................................... 8,014 5,911 4,657 1,254 1,755 225 35 89 1966—Dec. 31......................................... 6,323 4,729 3,396 1 ,333 1,339 200 6 49 1967—Dec. 31......................................... 4,936 3,966 2,897 1 ,069 898 61 3 9 1968—July 31......................................... 5,961 4,349 2,748 1 ,601 1,393 204 0 12 Aug. 31......................................... 6,071 4,1 19 2,825 1 ,294 1,518 416 4 14 Savings and loan associations: 1965—Dec. 31......................................... 3,644 597 394 203 948 1,374 252 473 1966—Dec. 31......................................... 3,883 782 583 199 1,251 1,104 271 475 1967—Dec. 31......................................... 4,575 1,255 718 537 1,767 811 281 461 1968—July 31......................................... 4,777 1,198 686 512 1 ,669 1,146 308 455 Aug. 31......................................... 4,758 1,072 632 440 1 ,728 1 ,202 305 450 State and local governments: 1965—Dec. 31......................................... 15,707 5,571 4,573 998 1.862 1,894 1,985 4,395 1966—Dec. 31......................................... 15,384 5,545 4,512 1,033 2,165 1,499 1,910 4,265 1967—Dec. 31......................................... 14,689 5,975 4,855 I ,120 2,224 937 1 ,557 3,995 1968—July 31......................................... 14,328 5,858 4,636 1 ,222 2,224 1,052 1 ,459 3,735 Aug. 31......................................... 14,185 5,806 4,704 1 ,102 2,293 1 ,012 1 ,441 3,632 All others: 1965—Dec. 31......................................... 68.675 35.356 29,089 6,267 15,784 11,386 2.187 3,962 1966—Dec. 31......................................... 73,690 38,685 32,646 6,039 18,896 9,619 2,215 4,275 1967—Dec. 31......................................... 72,976 38,121 31,628 6,493 21,951 5,991 2,356 4,555 1968—July 31......................................... 75,909 40,452 33,115 7,337 20,348 7,900 2,449 4,767 Au'g. 31......................................... 76,643 40,732 33,196 7,536 20,054 8,579 2,427 4,852 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,842 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 □ OCTOBER 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 mercial other U.S. Govt, Other banks securities 1967—Aug.............................. 1.884 1,578 243 33 30 662 60 662 500 159 Sept.............................. 1,937 1,705 177 30 24 715 52 711 459 200 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 2'247 1,756 295 174 22 719 75 831 622 262 June............................. 2’400 2,006 258 103 33 912 76 847 565 311 July.............................. 2,448 2,087 244 75 42 949 87 908 504 r28O Aug.............................. 2,214 1 ,705 228 261 20 849 90 790 485 258 Week ending— 1968—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 1 ,779 193 201 14 854 80 730 521 253 28 r................... 1 '755 1 ',430 182 125 18 714 60 574 407 235 Sept. 4..................... 2,295 1,960 159 159 18 808 60 793 635 320 ‘ 11..................... 1 '713 1,440 161 97 16 575 61 623 455 189 18..................... 2,395 2,053 21 I 113 19 1 ,039 64 844 448 210 25..................... 2,108 1 ',789 172 122 26 864 70 752 422 270 Note.—The transactions data combine market purchases and sales of ties under repurchase agreement, reverse repurchase (resale), or similar U.S. Govt, securities dealers reporting to the F.R. Bank of N.Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of, and exchanges for, new U.S. Govt, securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi­ DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period mat A ur ll i ties W 1 y it e h a i r n y 1 e - a 5 r s 5 O y v e e a r r s se a G c g u e o n r v i c t t i y . e s Period so A ur l c l es Y N o e r w k w E h ls e e r ­ e C t o io rp n o s r t a­ o A th U e r City 1967—Aug......... 2,903 2,564 312 26 265 Sept......... 2,545 2,305 202 38 242 2,717 835 734 868 280 Oct.......... 2,880 2’837 22 20 379 Sept........... 2,669 1 ,010 873 582 204 Nov........ 3 J09 2^793 258 58 312 Oct............ 2,660 '844 688 744 383 Dec.......... 2,410 2,375 35 1 363 Nov........... 2,863 650 640 1,176 397 Dec............ 2,549 556 482 1,144 367 1968—Jan........... 3,404 3,310 114 -20 393 Feb.......... 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...... 2,981 2,601 236 142 403 Mar.. 2,651 ’678 '643 829 *501 May........ 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*-....... 4,420 3,972 159 288 644 3,458 867 879 1 ,010 702 Aug......... 5,262 4,097 283 881 732 July*.......... 4,341 1,193 1 ,032 1 ’415 701 Aug........... 5 '465 1 ,431 1 '372 1 ,710 952 Week ending— Week ending— 1968—July 3*-.. 2,946 2,540 152 254 602 io*-.. 4,039 3,589 182 268 564 1968—July 3*... 2,878 567 700 1 ,065 546 17r. . 4,409 3,990 148 271 564 10*. .. 3,222 498 769 1 ,253 702 24r. . 4,747 4,312 145 291 666 I7\.. 4,685 1 ,255 1 ,104 1 ,465 861 31 r. . 5,252 4,745 167 338 792 24*. .. 4,939 1 ,642 1,132 1 ,541 624 31 *. . . 5,079 1 ,623 I , 249 1 ,515 693 Aug. 7... 5,148 4,421 265 462 711 14. . . 5,883 4,485 345 1 ,053 735 Aug. 7. ... 5,275 1 ,380 1 ,286 1 ,540 1 ,069 21 . . . 5,008 3,709 295 1 ,003 749 14.... 5,494 1 ,295 1 ,433 1 ,610 1,156 28.. . 5,083 3,842 257 984 710 21 ... . 5,603 1 ,528 1 ,331 1 ,766 977 28.... 5,516 1 ,521 1 ,395 1 ,883 717 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

OCTOBER 1968 □ GOVERNMENT SECURITIES A-43 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, SEPTEMBER 30, 1968 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Oct. 3, 1968.............. 2,602 Mar. 13, 1969................ 1,100 Oct. 1, 1971...• • • 1 0 72 Aug. 15, 1970.........4 4,129 Oct. 10, 1968................. 2,602 Mar. 20, 1969................ 1,100 Nov, 15. 1971......50 1,734 Aug. 15, 1971.........4 2,806 Oct. 17, 1968................. 2,704 Mar. 24, 1969f............. 2,015 Feb. 15, 1972......43/4 2,006 Nov. 15, 1971........■ 3% 2,760 Oct. 24, 1968................. 2,702 Mar. 27, 1969................ 1,102 Apr. 1, 1972......1’4 34 Feb. 15, 1972.........4 2,344 Oct. 31, 1968................. 4,201 Mar. 31, 1969............... 1 ,500 May 15, 1972......43/4 5,310 Aug. 15, 1972 .4 2,579 Nov. 7, 1968................. 2,702 Apr. 22, I969|.............. 2,003 Oct. 1, 1972.. ....10 33 Aug. 15, 1973.........4 3,894 Nov. 14, 1968................. 2,701 Apr. 30, 1969................ 1 ,501 Apr. 1, 1973......10 22 Nov. 15, 1973........•40 4,351 Nov. 21, 1968................. 2,702 May 31 , 1969............... 1 ,503 Aug. 15, 1974. . ....53/8 10,284 Feb. 15, 1974........• 41/, 3,129 Nov. 29, 1968................. 2,700 June 30 1969................ 1 ,502 Nov. 15, 1974. .....50 1,652 May 15, 1974.........40 3,588 Nov. 30, 1968................. 1 ,501 July 31, 1969............... 1 ,001 Feb. 15, 1975.. ....53/4 5,148 Nov. 15, 1974........• 3’/, 2,241 Dec. 5, 1968................. 2,701 Aug. 31, 1969................ 1 ,000 May 15, 1975......6 6,750 May 15, 1975-85...4}/4 1 ,215 Dec. 12, 1968................. 2,701 Sept. 30, 1969................ 1 ,001 June 15, 1978-83..• 31/4 1 ,567 Dec. 19, 1968................. 2,702 Feb. 15, 1980.........4 2,600 Dec. 26, 1968................. 2,710 Treasury notes Nov. 15, 1980........• 30 1 ,908 Dec. 31, 1968................. 1,499 Oct. 1,1968..........1/2 115 Treasury bonds May 15, 1985........• 33/4 1 ,110 Jan. 2, 1969................. 1,100 Nov. 15, 1968..........5% 8,984 Dec. 15, 1963-68... 2’A 1 ,787 Aug. 15, 1987-92...40 3,816 Jan. 9, 1969................. 1,102 Feb. 15, 1969..........5yg 10,738 June 15, 1964-69... 2^ 2,542 Feb. 15, 1988-93...4 249 Jan. 16, 1969................. 1,101 Apr. 1,1969.........l>/2 61 Dec. 15, 1964-69... 21/2 2,488 May 15, 1989-94...4% 1 ,559 Jan. 23, 1969................. 1,100 May 15, 1969.........5y8 4,277 Mar. 15, 1965-70.. .21/4 2,284 Feb. 15, 1990........■30 4,878 Jan. 30, 1969................. 1,101 Aug. 15, 1969..........6 3,366 Mar. 15, 1966-71... 21/4 1,223 Feb. 15, 1995.........3 1 ,654 Jan. 31, 1969................. 1 ,500 Oct. 1,1969...........l‘/2 159 June 15, 1967-72... 21/4 1 ,249 Nov, 15, 1998.........31/2 4,327 Feb. 6, 1969................. 1,103 Apr. 1,1970..........1V4 88 Sept. 15, 1967-72,. .214 1 ,952 Feb. 13, 1969..................; 1,101 Oct. 1. 1970..........n/2 113 Dec. 15, 1967-72.. .21/4 2,608 Feb. 20, 1969................. 1,101 Nov. 15, 1970...........5 7,675 Nov. 15, 1968........3% 1 ,158 Feb. 27, 1969................. 1,104 Feb. 15, 1971..........5% 2,509 Feb. 15, 1969........4 3,728 Convertible bonds Feb. 28, 1969................. 1,502 Apr. 1,1971...........11/2 35 Oct. 1,1969..........4 6,245 Investment Series B Mar. 6, 1969.................. 1,103 May 15, 1971..........5% 4,265 Feb. 15, 1970........4 4,381 Apr. 1,1975-80..• 23/4 2,507 f 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 Use of proceeds Total Period amount Special 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 HAAi G l U o o a . v S n t . s , State d a i s a s u t n t a t r d h t i , c . t Other 2 ered 3 Total c E a d ti u on ­ b R r a o id n a g d d e s s i U tie ti s l­ 4 H in o g u s 5 ­ V a a e n i t d s e ’ r ­ O p p o t u s h e r e s ­ r 1961................. 8,566 5,724 2,407 315 120 1,928 2,165 4,473 8 301 8,463 2 821 1,167 1 ,700 385 478 1,913 1962................. 8’845 5'582 2,681 437 145 1 ,419 2,600 4,825 8,732 8,568 2,963 1,114 1 ,668 521 125 2,177 1963................. 10^538 5,855 4,180 254 249 1,620 3’636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964................. 10,847 6,417 3’585 637 208 I ’628 3812 5 407 10 069 10,201 3’392 688 2,437 727 120 2,838 1965................. 11’329 7’177 3,517 464 170 2,401 3,784 5,144 11 ,538 10,471 3,619 900 1 ,965 626 50 3,311 1966................. 11’405 6’804 3,'955 325 312 2,590 4,110 4,695 n.a. 11 303 3’738 1,476 I ,880 533 3,667 1967 .............. 14',766 8,946 5'013 477 334 2 842 4 810 7,115 n.a. 14,643 4,473 1 ,254 2,404 645 5,867 1967—Aug...... 860 588 254 18 195 234 430 n.a. 858 212 142 211 52 242 Sept...... J ,340 566 648 105 21 246 588 507 n.a. 1 ,330 333 184 250 I 10 453 Oct....... 975 686 256 32 207 257 510 n.a. 974 269 130 139 18 417 Nov...... I ,400 766 592 43 335 548 517 n.a. 1 ,400 225 43 320 803 Dec....... 1 J 82 484 539 138 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....... 1 149 688 448 14 152 382 616 n.a. 1 J 47 474 HO 127 7 429 Mar...... 1 ,396 594 644 144 15 1 10 '51 3 771 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 I 12 445 Mayr... 1 J 20 681 234 144 61 221 305 596 n.a. 1 ,115 397 52 204 158 304 Juner... 1 ,380 686 662 32 87 539 756 n.a. 1 ,381 371 183 258 8 561 July.... 1 350 810 621 20 257 585 609 n.a. 1,446 391 278 4 660 Aug...... 1 ,683 783 749 129 22 264 786 638 n.a. 1 ,681 492 123 407 133 526 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 1 Includes urban redevelopment loans. by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt, loans. and payment to issuer, which occurs after date of sale. Investment Bankers Assn, data; par amounts of long-term issues 4 Water, sewer, and other utilities, based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-44 SECURITY ISSUES □ OCTOBER 1968 TOTAL NEW ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all issues 1 all corporate issues 6 Noncorporate Corporate New capital Period Bonds Stock t R ir e e ­ ­ Total G U o . v S t . .2 G a U c g o y e . v S n 3 t . ­ , l S o U a t c n a . a S d t l e . 4 Other 5 Total Total o P f l f i u c e l r b y e ­ d p v l P a a t r c e i e l ­ y d fe P rr r e e d ­ C m o o m n ­ Total Total m N on ew ey 7 O p p o t u s h r e e ­ s r s m ri e o t e c i f e n u s t ­ 1960................... 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 9,653 8,758 895 271 1961................... 35,527 12,253 1,448 8,360 303 13,165 9,420 4,700 4,720 450 3,294 12’885 12,017 10,715 1 ,302 868 1962................... 29,956 8,590 1,188 8^558 915 10,705 8,969 4,440 4,529 422 1,314 10'501 9'747 8'240 1,507 754 1963................... 35,199 10,827 1,168 10,107 887 12,211 10,856 4,713 6,143 343 1,011 12,049 10,523 8,898 1,625 1,526 1964................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 13,792 13,038 11,233 1,805 '754 1965................... 40,108 9,'348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 15,801 14,805 13,063 1 ,741 996 1966................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 17,841 17,601 15,806 1,795 241 1967................... 68,514 19’431 8,180 14,288 1,817 24^98 21 ,954 14,990 6,964 885 1 ^959 24,409 24,097 22,233 1 ;867 312 1967—July........ 4,375 415 407 925 39 2,589 2,375 1 ,889 486 85 130 2,546 2,457 2,181 275 89 Aug........ 10,625 6,458 250 840 596 2,481 2,231 1 ,813 418 105 144 2,440 2,406 2,184 222 34 Sept........ 4,218 362 599 1 ,273 220 1 ,763 1 ,549 902 647 41 173 1 ,732 1,723 1,581 142 10 4,609 422 708 991 78 2,409 1 ,940 1 ,375 566 231 238 2,367 2,289 2,120 168 79 Nov........ 8,732 5,054 710 1 ,320 147 1 500 1 ,196 645 551 81 222 1 ,470 1 ,467 1,305 163 3 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 I ,608 1 ,382 796 585 58 169 1 ;585 1 ,568 1 ,447 121 16 Mar........ 5,069 418 1,370 1 ,363 118 1 ,799 1 ,359 766 593 145 295 1 ,765 1 ,740 1 ,592 149 24 Apr........ 3,423 404 225 1 ,277 88 1 ,428 1,157 719 438 49 221 1,397 1 ,385 I ,210 175 12 May....... 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....... M.984 383 779 1,360 r52 2,411 2,025 1,340 685 24 361 2,367 2,334 1 ,944 389 33 July........ 4,942 417 800 1,422 130 2,173 1 ,804 1 ,244 561 86 283 2,127 2,120 2,010 111 6 Proposed uses of net proceeds, major groups of corporate issuers Public utility | Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation 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 capital 8 secu­ capital b secu­ capital8 secu­ capital8 secu­ capital8 secu­ capital8 secu­ rities rities rities rities rities rities I960.............................................. 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961.............................................. 3'691 287 1,109 36 651 35 2'883 106 1 '435 382 2'248 22 1962.............................................. 2,958 228 ’803 32 543 16 2'341 444 1,276 11 1,825 23 1963.............................................. 3,272 199 756 53 861 87 1,939 703 733 359 2,962 125 1964.............................................. 2,772 243 1,024 82 941 32 2’445 280 2,133 36 3^723 80 1965.............................................. 5,015 338 1,302 79 967 36 2,546 357 '847 92 4'128 93 1966.............................................. 6,855 125 1'356 44 1,939 9 3,570 46 1,978 4 1'902 14 1967.............................................. 10,774 111 2^211 47 2,016 22 4’741 127 1 ’955 2,399 5 1967—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 * 273 537 15 208 11 91 417 N86 267 Feb.................................... 556 5 142 1 118 546 8 147 61 2 761 1 175 * 192 431 17 78 6 102 353 1 1 317 203.. 178 189 1 146 May.................................. 550 1 175 1 106 2 549 103 * 341 1 c75O 5 394 1 154 474 27 237 326 1 July................................... 839 4 412 2 195 236 236 203 I 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation, number of units by offering price. i For plant and equipment and working capital. 2 Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. 4 See Note to table at bottom of opposite page. Note.—Securities and Exchange Commission estimates of new issues s Foreign governments. International Bank for Reconstruction and maturing in more than 1 year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 In co ve s s .1 t. Other 1963....................... 15,641 8,711 6,930 10,556 4,979 5,577 3,138 1 ,948 1,536 2,197 1,602 -249 1964....................... 18,826 8,290 10,536 10,715 4,077 6,637 4,363 3,748 1,895 2,317 2,468 1 ,431 1965....................... 21,535 10,025 11,51! 12,747 4,649 8,098 5,583 3,205 2,134 3,242 3,450 -37 1966....................... 26,327 9,567 16,761 15,629 4,542 11,088 6,529 4,169 2,025 3,000 4,504 1,169 1967....................... 33,303 10,496 22,537 21,299 5,340 15,960 6,987 4,664 2,761 2,397 4,226 2,267 1967—H................ 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—I.................. 7,682 3,049 4,663 3,997 1,286 2,711 2,454 1,230 821 912 1,633 319 II................ 8,384 3,933 4,431 5,124 1 ,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 o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1963....................... 1,804 -664 339 -352 316 -19 876 245 438 447 1 ,806 1,696 1964....................... 1,303 -516 507 -483 317 -30 1,408 476 458 1 ,699 2,644 2,753 1965....................... 2,606 -570 614 -70 185 -1 1,342 96 644 518 2,707 3,440 1966....................... 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 4,414 1967....................... 7,237 832 1 ,104 282 1 ,158 165 3,444 652 1,716 467 1,302 4,178 1967—II. . ............ 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—1.................. 991 -60 257 112 170 -26 956 309 295 31 109 -46 11................ 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 ti d o e n m s p­ s N al e e t s Total 2 po C si a t s io h n 3 Other Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C s a it s i h o n3 Other 1956.............. 1,347 433 914 9,046 492 8,554 1967—Aug... 347 249 98 42,663 2,370 40,293 1957.............. 1 '391 406 984 8,714 523 8'191 Sept... 352 246 106 43,585 2,244 41,341 1958.............. 1'620 511 1,109 13^42 634 12,608 Oct... 409 270 139 42,652 2,218 40,434 Nov. . 468 231 237 43*262 2^53 40^609 1959.............. 2,280 786 1,494 15,818 860 14,958 Dec.. . 501 242 259 44,701 2,566 42,135 1960.............. 2,097 842 1,255 17,026 973 16,053 1961.............. 2,951 1,160 1 '791 22,789 980 21,809 1968—Jan,... 556 316 240 42,466 2,679 39,787 1962.............. 2’699 1,123 1 ^576 2^271 1,315 19,956 Feb,.. 451 260 191 41,533 3,409 38,124 Mar... 557 243 314 42,412 3,919 38,493 1963 .............. 2,460 ) ,504 952 25,214 1,341 23,873 Apr... 618 309 309 46,179 3,923 42,256 1964.............. 3,404 1 '875 1,528 29'116 1 J29 27,787 May. . 502 366 136 48,054 3,495 44,559 1965.............. 4^359 1,962 2’395 35220 1,803 33,417 June.. 535 374 161 48,426 3,273 45,153 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 July. . r582 344 237 47,342 3,113 44,229 1967.............. 4,670 2,745 1 ’927 44'701 2,566 42,135 Aug.. . 53! 309 222 48,470 3,459 45,011 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 □ OCTOBER 1968 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1966 1967 1968 Industry 1963 1964 1965 1966 1967 III IV I II III IV I II Manufacturing Total (177 corps.): Sales.............................................. 147,380158,253177,237 195,738 201,399 46,202 51,991 48,585 51,679 48,317 52,818 '54,338 55,691 Profits before taxes....................... 17,337 18,734 22,046 23,487 20,898 4,881 6,126 5,153 5,608 4,232 5,867 '6,280 7,157 Profits after taxes.......................... 9,138 10,462 12,461 13,307 12,664 2,845 3,466 2,918 3,190 2,38! 3,268 3,497 * 3,'468 Dividends...................................... 5,444 5,933 6,527 6,920 6,989 1,631 1,965 1,670 1,701 1,721 1,897 1,710 1^694 Nondurable goods industries (78 corps.):2 Sales.............................................. 55,372 59,770 64,897 73,643 77,969 18,297 19,129 18,743 19,535 19,695 19,996 '20,594 19,879 Profits before taxes....................... 6,333 6,881 7,846 9,181 9,039 2,305 2,232 2,153 2,250 2,209 2,427 '2,789 2,826 Profits after taxes......................... 3,646 4,121 4,786 5,473 5,379 1,389 1,352 1,319 1 ,343 1 ,313 1 ,431 1 ,609 11,434 Dividends...................................... 2,265 2,408 2,527 2,729 3,027 673 723 720 756 770 781 742 720 Durable goods industries (99 corps.):3 Sales.............................................. 92,008 98,482112,341 122,094 123,429 27,905 32,861 29,842 32,144 28,622 32,821 '33,744 35,812 Profits before taxes....................... 11,004 11,853 14,200 14,307 11,822 2,577 3,895 3,000 3,358 2,024 3,440 3,491 4,331 Profits after taxes......................... 5,492 6,341 7,675 7,834 6,352 1 ,456 2,115 1 ,599 1 ,847 1 ,068 1 ,838 1 ,888 1 2,034 Dividends...................................... 3,179 3,525 4,000 4,191 3,964 958 1,242 950 945 952 1,117 968 973 Selected industries: Foods and kindred products (25 corps.): Sales.............................................. 14,301 15,284 16,427 19,038 20,134 4,759 5,011 4,963 5,060 5,131 4,980 '4,698 5,268 Profits before taxes....................... 1 ,546 1 ,579 1,710 1 ,916 1,967 504 485 447 482 526 512 497 603 Profits after taxes......................... 747 802 896 1 ,008 1,041 262 259 236 253 284 268 262 1 272 Dividends...................................... 448 481 509 564 583 139 146 148 144 146 145 150 146 Chemical and allied products (20 corps.): Sales.............................................. 14,623 16,469 18,158 20,007 20,561 4,824 5,072 4,998 5,163 5,116 5,284 '6,447 5,870 Profits before taxes...................... 2,286 2,597 2,891 3,073 2,731 789 650 694 700 636 701 916 721 Profits after taxes......................... 1,182 1 ,400 1,630 1 ,737 1,579 443 386 396 404 363 416 501 1 384 Dividends...................................... 904 924 926 948 960 234 269 238 235 235 252 236 236 Petroleum refining (16 corps.): Sales.............................................. 16,043 16,589 17,828 20,887 23,258 5,298 5,530 5,390 5,808 5,985 6,075 '5,829 6,303 Profits before taxes..................... 1,487 1,560 1 ,962 2,681 3,004 631 726 684 741 744 835 '1,028 1 ,089 Profits after taxes......................... 1,204 1 ,309 1,541 1 ,898 2,038 479 495 505 504 489 540 655 i 544 Dividends...................................... 608 672 737 817 1,079 204 209 232 280 286 281 253 255 Primary metals and products (34 corps.): Sales.............................................. 22,116 24,195 26,548 28,558 26,532 7,309 7,225 6,801 7,040 6,525 6,166 '7,089 7,746 Profits before taxes....................... 2,178 2,556 2,931 3,277 2,487 857 810 693 670 477 647 636 848 Profits after taxes......................... 1,183 1 ,475 1 ,689 1 ,903 1 ,506 490 475 395 411 290 410 368 J 455 Dividends...................................... 734 763 818 924 892 230 260 222 214 228 228 224 229 Machinery (24 corps.): Sales.............................................. 21,144 22,558 25,364 29,512 32,721 7,538 8,100 7,704 7,933 8,090 8,994 8,327 8,945 Profits before taxes...................... 2,394 2,704 3,107 3,612 3,482 851 952 868 807 837 970 920 994 Profits after taxes......................... 1,177 1,372 1,626 1 ,875 1 ,789 444 495 421 417 438 513 475 1 444 Dividends...................................... 577 673 774 912 921 226 244 232 233 227 229 244 244 Automobiles and equipment (14 corps.): Sales.............................................. 32,927 35,338 42,712 43,641 42,306 8,046 12,149 10,413 11,875 8,354 11 ,664 12,154 13,950 Profits before taxes...................... 5.004 4,989 6,253 5,274 3,906 313 1 ,567 1 ,050 1 ,436 216 1 ,204 1 ,485 1 ,846 Profits after taxes......................... 2,387 2,626 3,294 2,877 1 ,999 224 826 583 782 62 572 795 i 823 Dividends...................................... 1,447 1,629 1 ,890 1 ,775 1 ,567 361 551 363 365 362 477 362 364 Public utility Railroad: Operating revenue........................ 9,560 9,778 10,208 10,654 10,366 2,690 2,718 2,536 2,628 2,529 2,673 2,610 n.a. Profits before taxes....................... 816 829 980 1,088 391 280 268 145 163 83 1 125 n.a. Profits after taxes......................... 651 694 816 902 325 227 244 121 143 78 - 17 HO n.a. Dividends...................................... 383 438 468 496 539 113 161 124 156 103 155 114 n.a. Electric power: Operating revenue....................... 14,294 15,156 15,816 16,908 17,894 4,236 4,246 4,697 4,280 4,406 4,511 5,138 4,580 Profits before taxes....................... 3,735 3,926 4,213 4,395 4,564 1,153 1,041 1,279 I ,026 1 ,161 1 ,099 1 ,284 1 ,018 Profits after taxes......................... 2,187 2,375 2,586 2,764 2,911 702 673 799 666 717 729 863 641 Dividends...................................... 1 ,567 1,682 1,838 1,932 2,071 475 505 518 510 509 534 539 555 Telephone: . Operating revenue....................... 9,796 10,550 11,320 12,420 13,311 3,135 3,202 3,229 3,312 3,341 3,429 3,486 3,544 Profits before taxes...................... 2,815 3,069 3,185 3,537 3,694 911 868 869 923 953 949 .971 989 Profits after taxes........................ 1,417 1,590 1,718 1 ,903 1,997 487 468 472 497 515 513 525 441 Dividends...................................... 988 1 ,065 1,153 1 ,248 1,363 317 320 334 337 341 351 351 318 i Reflects each company’s adjustment for 10% surcharge. Telephone: Data obtained from Federal Communications Commis­ 2 Includes 17 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System 3 Includes 27 corporations in groups not shown separately. Consolidated (including the 20 operating subsidiaries and the Long Lines and General Depts, of American Telephone and Telegraph Co.), Note.—Manufacturing corporations: Data are obtained primarily from and for 2 affiliated telephone companies. Dividends are for the 20 operat­ published reports of companies. ing subsidiaries and the 2 affiliates. Railroads: Interstate Commerce Commission data for Class I line­ All series: Profits before taxes are income after all charges and before haul railroads. Federal income taxes and dividends. Electric power: Federal Power Commission data for Class A and B Back data available from the Division of Research and Statistics. electric utilities, except that quarterly figures on operating revenue and profits before taxes are partly estimated by the Federal Reserve to include affiliated nonelectric operations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 s t e s c ta I o x n m e ­ e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a t l i s l p o o u i n w t m a ­ l p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s t s d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a t n a l i l o s p o u n i w t m a ­ l p ­ ances 1 ances 1 1961.............. 50.3 23.1 27.2 13.8 13,5 26.2 1966—III... 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—1.... 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 II.... 80.3 33.0 47.3 23.2 24.1 42.9 III. .. 80.8 33.2 47.6 23.5 24.1 44.1 1965........... 77,8 31.3 46.5 19.8 26.7 36.4 IV. .. 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.............. 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 II.... 91.8 41.1 50.7 24.4 26,3 46,7 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts, Notes and accts, End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i , ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 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—III..................... 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. I .....1..9..2....8.........4.41.1 47.4 11.3 4.6 204,9 147,9 24.9 248,2 5.4 174.6 12.5 55.7 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 IT....................... 208.6 477.9 51,1 12.9 4.7 220.8 158,5 29.8 269.2 6.2 185.4 15.1 62.4 i 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 Non­ Mining u P ti u li b t l i i e c s C ni o c m ati m on u s ­ Other 1 a ( n S n . u A a . l Durable durable Railroad Other rate) 1962........................................ 37.31 7.03 7.65 1.08 .85 2.07 5.48 3.63 9.52 1963........................................ 39,22 7,85 7.84 1.04 1.10 1.92 5,65 3.79 10.03 1964........................................ 44.90 9.43 9.16 1.19 1.41 2.38 6.22 4.30 10.83 1965......................................... 51.96 11.40 11.05 1.30 1.73 2.81 6.94 4.94 11.79 1966........................................ 60.63 13.99 13.00 1.47 1.98 3.44 8.41 5,62 12.74 1967......................................... 61.66 13.70 13.00 1.42 1.53 3.88 9.88 5,91 12.74 1968 2....................................... 64.37 13.42 13.13 1 ,49 1.52 4. 55 11.29 6.42 12.56 1966—III................................. 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 Il................................. 15.90 3.22 3.28 .36 .38 1.04 2.97 1.51 3.14 62,75 Ill2............................... 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 n OCTOBER 1968 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm E pe n r d i o o d f All Fi c n ia a l n ­ ho O l t d h e e r r s 2 All Fi c n ia a l n ­ Other Ah 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti es 5 M t o y r p tg e a 6 ge h e o r l s d­ tu in ti s o t n i­ s1 a U c g i . e e S n s . ­ v o I i t a d n h n u d e d a i r ­ l s s h e o r l s d­ tu i t n i s o t n i­ s1 h e o rs ld 3 ­ h e o r l s d­ Total tu F i t n in i s o a t n i n ­ s , 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s , 1 O ho e t r h l s d e ­ r w u F n V r H i d A t A t e e - r n - ­ t C i v o e o n n n a ­ ­ l 1941........... 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945........... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 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........... '300.1 241 .0 11.4 '47.7 18,9 7.0 11.9 •■281.2 '197.6 '170.3 '27.3 83.6 •■63.7 '19.9 77.2 '204.0 1965........... '325.8 264.6 12.4 '48.7 21.2 7.8 13.4 '304.6 r212.9 '184.3 '28.7 91.6 r72.5 ’•19.1 81.2 •■223.4 1966".......... 347.0 280. 8 15,7 50,4 23.3 8.4 14.9 323.6 223.6 192.2 31.5 100.0 80.2 19.8 84.1 239.6 1967"......... 369.5 298.9 18.5 52.1 25.2 9.1 16.0 344.3 236.0 201.9 34.1 108.3 87.9 20.4 88.2 256.1 1966—I". . . 331 .9 269.6 13.5 48.8 21.8 8.0 13.7 310.2 216.2 187.0 29.2 94.0 74.6 19.4 82.1 228.1 II". . 338.6 274.7 14.4 49.4 22.5 8.2 14.2 316.1 219.6 189.6 29.3 96.5 76.8 19.7 82.6 233.5 III". 343.3 278.2 15.2 50.0 23.0 8.4 14.6 320.3 221 .9 191.1 30.8 98.5 78.7 19.8 83.4 236.9 IV".. 347.0 280.8 15.7 50.4 23.3 8.4 14.9 323.6 223.6 192.2 31.5 100.0 80.2 19.8 84.1 239.6 1967—I"... 350.0 282.9 16.4 50.7 23.7 8.5 15.2 326,3 224.9 192.8 32.0 101.5 81.6 19.9 84.4 242.4 II".. 355.6 287.7 16,7 51.3 24.2 8.7 15.5 331.4 227.8 195.4 32.4 103.6 83.6 20.0 85.3 246.1 III".. 362.6 293.4 17.5 51.8 24.7 8.9 15.8 337.9 232.0 198.7 33.2 105.9 85.7 20.2 86.4 251,5 IV" . 369.5 298.9 18.5 52.1 25.2 9.1 16.0 344.3 236.0 201.9 34.1 108,3 87.9 20.4 88.2 256.1 1968—I".. . 374.9 302.7 19.6 52.5 25.7 9.3 16.4 349.2 239.3 204.1 35.2 109.9 89.4 20,5 89.4 259.8 II".. 381.9 308.2 20.6 53.1 26.3 9.6 16.7 355.6 243.4 207.1 36.3 112,2 91.5 20.8 90,1 265.5 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. < > 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 1 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, sec 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 >72 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 >82 6*520 2,654 14*308 8,972 2,022 32,320 29,181 9 >38 9 >87 10J56 3 >88 51 1963............................... 39,414 26,476 7,105 2,862 16*509 10,611 2,327 36,224 32*718 10,684 10,490 11’544 3,454 52 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49*675 32*387 7’702 2,688 21,997 14,377 2*911 44,617 40*096 13,791 11,408 14*897 4,469 52 1966............................... 54*380 34,876 7^544 2 >99 24>33 16,366 3 >38 47’337 42,242 14’500 11*471 16,272 5,041 53 1967............................... 59,019 37 >42 7',709 2,696 27’237 17,931 3 >46 50,490 44,641 15 >74 11 >95 17>72 5 >32 117 1966—i......................... 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 JJ........................ 52 ,'306 33,800 7 >69 2,654 23’377 15 >78 3'028 45'883 41,083 14 >47 11'346 15,690 4*747 53 Ill...................... 53’606 34,469 7,687 2’620 24,162 16^028 3'109 46,622 41,673 14'274 11*413 15'986 4'896 53 IV....................... 54’380 34^876 7,544 2,599 24,733 16,366 3’138 47,337 42,242 14’500 11,471 16>72 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 IJ........................ 55,731 35,487 7 ,’396 2 >95 25^596 16,970 3,274 48,893 43,526 I4>47 11,768 16,811 5’316 51 in...................... 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 >46 50,490 44,641 15 >74 11 >95 17 >72 5 >32 117 1968—1......................... 60,119 38,157 7,694 2,674 27,789 18,396 3,566 51,218 45,171 15,179 11 ,872 18,120 5 ,931 116 II....................... 61,967 39,113 7,678 2 >48 28’787 19,*098 3 ,*756 51 >93 45 >70 15,246 11,918 18,406 6J08 115 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 andon 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

OCTOBER 1968 □ REAL ESTATE CREDIT A-49 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H ur A e - d a g n V u t A e a e r - d ­ Other 1 Farm 1 Total Total i F ns 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 >59 1'355 469 5 >35 619 46,902 43’502 10,176 6,395 26'931 3,400 1963. 9,172 8*306 1 '598 678 6,030 866 50,544 46,752 10*756 6,401 29 >95 3,792 1964. 10'433 9,386 1’812 674 6’900 1 ,047 55’152 56’848 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............................................. 8’470 7,633 757 444 6,432 837 67,516 61 947 12,161 6,122 43,664 5 569 1967--July................................. 650 593 52 29 512 57 66,318 60 916 12 309 6,170 42,437 5 402 Aug.................................... 676 618 68 32 518 58 66,506 61,073 12,289 6,144 42'640 5,433 Sept.................................... 688 631 62 36 533 57 66,701 61 239 12,263 6'131 42>45 5*462 Oct.................................... 675 623 68 40 515 52 66,884 61’401 12>36 6,124 43,041 5 ’483 Nov................................... 662 603 50 30 523 59 67,097 61’595 12,214 6,112 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 >92 I2>64 6'097 44>31 5 >75 Mar.................................... 640 531 52 28 451 109 68 ,055 62,421 12'137 6,086 44',198 5634 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 6'022 44'708 5’731 July................................... 664 612 59 4! 512 52 68'708 62',969 12>36 6 ,'046 44 >87 5 >39 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 c ­ es R m e e p n a ts y­ M de e p m o b s e it r s s Period Total 1 h c o o m n­ e H p o u m r­ e Total 2 FH in A ­ - g V u A ar - ­ C ve o n n ­ ­ Total S te h rm or t­ 1 t L e o rm ng ­ 2 struc­ chase sured anteed tional tion 1945....................... 278 213 195 176 19 46 1945 ............. 1,913 181 1,358 5,376 1961....................... 2 882 2,220 2,662 1,447 J ,216 1,180 1962....................... 4 111 3294 3,479 2 >05 1,474 1 >13 1961............. 17,364 5 081 7 207 68 834 4 167 7,152 57 515 1963....................... 5 601 4,296 4,784 2,863 1,921 1 >51 1962............. 20,754 5 979 8’524 78,770 4*476 7 010 67*284 1964....................... 5,565 5 >25 5,325 2,846 2,479 1 >99 1963............. 24’735 7'039 9 920 90 944 4,696 6,960 79,288 1965....................... 5 007 4>35 5'997 3>74 2,923 1 >43 1964............. 24*505 6,515 10,397 101,333 4 894 6,683 89,756 1966....................... 3’804 2 >66 6,’935 5’006 1,929 1 >36 1965 ............. 23’847 5 922 10,697 110>06 5 145 6 398 98 >63 1967....................... 1 ,527 4’076 4'386 3,985 ’401 1 ,432 1966.............. 16*720 3,606 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-—Aug............ 134 202 4,153 3,659 494 1 ,343 Sept............ 102 133 4,122 3,642 480 1 >17 1967—Aug... 2,228 424 1,186 118,674 5,514 6,223 106,937 Oct............. 160 169 4>14 3 >81 433 1,323 Sept.., 1 ,971 381 1,017 119,529 5,576 6,258 107,695 Nov............ 176 102 4,188 3>93 395 1 >47 Oct.... 1,950 413 949 120,362 5,660 6.292 108,410 Dec............ 252 54 4'386 3,985 401 1,432 N D o ec v . . . . . . 1 1 , , 8 7 0 5 1 9 3 3 8 8 8 0 7 8 8 56 0 1 1 2 2 1 1 , , 1 8 2 9 7 3 5 5 , , 7 7 1 9 4 4 6 6 , , 3 3 3 5 6 6 1 1 0 0 9 9 , , 0 7 7 4 7 3 1968—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 0 01 8 2 1 5 9 1 5 4 4 , * 4 3 4 4 2 8 3 3 , , 8 9 0 63 6 4 5 7 4 9 2 I 1 , , 1 1 8 98 2 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 4'545 4 >26 519 1 >70 Mar.., 1 ,766 409 840 123,426 5,903 6,482 111,041 May........... 282 108 4>19 4'197 522 1 ,293 Apr,. . 1 ,952 475 934 124,305 5,964 6,528 111,813 June........... 245 75 4 >89 4,408 481 1,382 J M u a n y e . . . . 2 1 , , 0 9 8 6 7 5 5 4 0 2 5 6 1 1 , , 0 0 4 6 1 6 1 1 2 2 5 5 , , 2 9 6 8 2 8 6 6, , 0 0 8 2 2 9 6 6, , 5 5 9 6 9 4 1 11 1 3 2 , , 3 6 0 6 7 9 J A u u l g y . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3 98 4 2 1 3 8 5 8 4 4* ,9 9 8 9 8 7 4 4, '5 5 3 61 5 4 4 5 3 3 7 1 1 ' ' 1 1 7 8 4 4 July... I ,844 396 I ,031 126,707 6,181 6,637 113,889 Aug.!’. 1 ,983 414 1 ,146 127,586 6,274 6,697 114,615 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than J Includes loans for repairs, additions and alterations, refinancing, etc., I year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-50 REAL ESTATE CREDIT □ OCTOBER 1968 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON (In millions of dollars) NON-FARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) FHA-insured VA-guaranteed Government- Period Total h N om M ew e o s rtga h i g o s E e t m i x s n e ­ g s e P c r t o s j­ t m p P e r i e r o m r o n t v y t p ­ s e ­ ­ 2 Total 3 h N om M ew e o s rtga h i . g s o E e t m i x s n ­ e g s E p n er d io o d f Total Tota u l nd s F e u i H r n r w e ­ A d ri - t t a e g n n V t u e A a e r - d ­ 1 t C i v o e o n n n a ­ ­ l 1945............................ 665 257 217 20 171 192 1945 ............... 18.6 4.3 4 1 2 14.3 1961............................ 6,546 1 783 2,982 926 855 I 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............... r197.6 69.2 38 3 30 9 '128 3 1966............................ 7,320 1 729 4,366 583 641 2,600 980 1 ’618 1965................ '212.9 73 1 42 0 31 I '139 8 1967............................ 7,150 1 369 4 516 642 623 3,405 1 143 2 259 1966................ r223,6 76 0 44 8 '31.3 '147 6 1967J’.............. 236.0 799 47.4 32 5 156 1 1967—Aug.................. 762 129 525 45 62 340 97 243 Sept................. 758 129 514 58 56 352 101 251 1966—1.......... '216.2 74 1 43 0 31 1 '142.1 Oct.................. 817 150 515 88 64 434 125 310 II......... r2l9.6 74 6 43.7 '310 145.2 Nov............... 746 149 471 72 53 383 127 255 Ill....... '221.9 75.4 44.4 31.0 '146.5 Dec.................. 594 124 334 90 47 340 124 217 IV. . . .. '223.6 76,0 44.8 '31.3 '147.6 1968—Jan.................. 693 147 431 70 45 349 1 35 213 1967—1"........ 224.9 76.4 45.2 31.2 148 4 F M e a b r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 3 7 5 3 1 1 2 2 4 0 3 3 1 14 2 10 6 0 2 3 39 6 2 2 8 67 0 1 1 1 1 1 5 1 1 6 5 9 2 I I H II" .. . . . . .. . . . 2 2 2 3 7 2 . . 8 0 7 7 7 8. . 3 2 4 4 5 6 . . 7 6 3 3 1 1 . . 5 7 1 15 5 3 0 . . 7 6 Apr.................. 603 131 340 80 53 265 110 156 IV".... 236.0 79.9 47.4 32.5 156.1 May................. 686 121 374 131 60 280 112 168 June................ 674 123 371 122 58 241 98 143 1968—1 v........ 239.3 81 .0 48.1 32.9 158,3 July................. 712 135 438 72 66 327 120 207 IIP....... 243.3 81.4 48.7 32.7 162.0 Aug................. 752 135 460 94 63 341 122 218 1 Includes outstanding amount of VA vendee 1 Monthly figures do not reflect mortgage amendments included in annual totals. accounts held by private investors under repurchase 2 Not ordinarily secured by mortgages. agreement. 3 Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. Note.—For total debt outstanding, figures arc FHLBB and F.R. estimates. For conventional, Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans figures are derived. represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans Based on data from Federal Home Loan Bank closed. Figures do not take into account principal repayments on previously insured or Board, Federal Housing Admin., and Veterans Admin. guaranteed loans. For VA-guaranteed Ioans, 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 i g o e n s Com­ All residential Multifamily 1 End of ( p d e u ri r o in d g ) m m e i n t t ­ s E pe n r d i o o d f Finan­ Finan­ period Total F su H in re A ­ d - a g V n u t A c 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 i c n 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 63! 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 1 316 424 '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.............. '231.1 '195.4 35.7 '33.6 '25,1 8.5 1965 .............. '250,1 '213,2 '36.9 '37.2 '29 0 '8.2 1967—Aug................ 7,872 6,076 1,796 291 1 1,447 1966?'............ 263.8 223.7 40,1 40 1 31 5 8.6 Sept.............. 8 ’ 105 6.249 1,856 272 1 '473 1967"............ 279. 8 236.7 43,1 43.7 34 7 9 0 Oct................. 8,371 6,441 1,930 307 1 ’535 Nov................ 8,610 6615 1 ^995 279 1 376 1966—1"....... 254.4 216.7 37.7 38.2 29.8 8.4 Dec.......... 8'870 6 803 2,066 299 1,672 II".... 258.6 220.1 38.5 39.0 30,5 8.5 III". .. 261 .5 222.1 39.4 39.6 31.0 8.6 1968—Jan.......... 9,220 7,052 2,168 388 1 ,588 IV"... 263.8 223.7 40.1 40.1 31.5 8.6 Feb................ 9,525 7,268 2,257 341 1 1 ,494 9,800 7 474 2,326 316 1 ,451 1967—1"....... 265,7 225.0 40.7 40.8 32.2 8.6 10,046 7 657 2,389 289 1 ,'454 II".. 269.5 228.3 41 .2 41.7 32.9 8.8 May............... 10^282 7 837 2,445 280 1 ',906 III". 274.6 232.5 42. 1 42.6 33.8 8.8 10^503 8 001 2'502 267 1 ,759 HI". .. 279.8 236.7 43.1 43.7 34.7 9.0 July................ 10,656 8,117 2'539 194 2’011 Aug................ 10,798 8,229 2,569 184 ....2..^..2..1..9 1968—I"....... 283.5 239.2 44.3 44.2 35,1 9.1 II".... 288.6 243,1 45.5 45,2 36.0 9.2 Note.—Federal National Mortgage Assn, data, including mortgages subject to participation pool of Government Mortgage Liquidation t Structures of 5 or more units. For 1- to 4-family mortgage debt see Trust, but excluding conventional mortgage loans acquired by FNMA second preceding page. from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin,, and Community Facilities Admin. Note.—Based on data from same source as for “Mortgage Debt Out­ standing” table (second preceding page). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 & i s M (y a e t a u r r s it ) y L c p r ( a o e p r t i n a e i c t r o n e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a h d m L o ol u o o la s a u r . n n s o ) t f c C t ( r r e p a a o n e t c n e t r t ) ­ c F c h e ( e a p e n r s e g t r ) e & 1 s M (y a e tu ar r s i ) ty L c p r ( a e o p ri t n e a c i t r o n e ) / (t d h c o o p P h l r u l u a i a s c s r . r e e ­ s o ) f (th a d L m o o l u o o l s a a u . n r n s o ) t f 1963....................... 5.84 .64 24.0 73.3 22.5 16.3 5.98 ,60 19.2 70.8 17 8 12,6 1964....................... 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 1 8 9 13 4 1965....................... 5.74 .49 25.0 73.9 25.1 18.5 5,87 .55 2! 8 72 7 216 15 7 1966....................... 6.14 .71 24.7 73.0 26.6 19.4 6.30 .72 21.7 72.0 222 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-—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 7 173 Nov............ 6.33 .76 25.3 73.4 28 9 21.2 6.42 .77 22.7 72 9 25 1 183 Dec............. 6.41 .84 25.4 72.7 29.6 21.5 6.51 .83 23.1 73.1 252 184 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 5 180 Mar........... 6.50 .88 25.7 74.3 30.2 22.4 6.59 .79 23.0 73 3 2S' 4 1 8 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 7l' 1 253 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............ 7.04 . 85 25.5 73.7 30 5 22.5 7.10 .83 22 5 72.6 25 7 186 Aug.71......... 7.09 .87 25.5 73.8 31.2 23.0 7.11 .82 22.6 72.8 25.6 18*5 1 Fees and charges—related to principal mortgage amount—include originated by major institutional lender groups (including mortgage loan commissions, fees, discounts, and other charges, which provide companies) for purchase of single-family homes. Data exclude loans for added income to the lender and are paid by the borrower. They exclude refinancing, reconditioning, or modernization; construction loans to any closing costs related solely to transfer of property ownership. home-builders; and permanent loans that are coupled with construction loans to owner-builders. Series beginning 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 End of period but delinquent for— Lo f a o n re s ­ in (thousands) m str o u r c tg tu a r g e e s d ) closure Total 30 days 60 days o 9 r 0 m da o y r s e 196!......................................... 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 HI................................ 29,1 .50 1965—11................... 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 If................................. 30.8 .51 1966—1..................... 3.02 2.13 .55 .34 . 38 Ill................................ 29,3 . 48 H................... 2.95 2.16 .49 30 38 IV................................. 28 6 .46 HI.................. 3.09 2.25 .52 .32 .36 IV................. 3.40 2. 54 .54 .32 .36 1967—1................................... 29.5 .48 ii.................................. 29.0 .47 1967—1.................... 3.04 2.17 .56 .31 38 HI................................ 27.2 .43 II................... 2.85 2.14 .45 .26 . 34 IV................................. 24.9 .40 ni.................. 3.15 2.36 .52 .27 31 IV.................. 3.47 2.66 .54 . 27 .32 1968—I................................... 24.4 . 38 IP’............................... 24.3 .38 1968—1..................... 2.84 2.11 .49 .24 .32 II................... 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 □ OCTOBER 1968 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t i o e l r e ­ co g O p n o a s t o p h u d e e m r r s e r e a r n R n I d o i e z a p m n a a t s o i i o r 1 d n ­ Pe l r o s a o n n s al Total p S a l i y o n m a g n l e e s n ­ t a C cc h o a u rg n e ts S c e r r e v d ic it e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 9,172 6,085 2,458 1 329 376 1,322 3,087 845 1 1645 597 1945 5'665 2,462 455 816 182 1 ;oo9 3,203 746 1,612 845 1960. 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 3'19! 11,256 14,151 5'136 5,324 3'691 1962. 63,164 48,034 19,540 12,605 3’246 12,643 15,130 5’456 5 384 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 6354 6’300 4*640 1965. 87,884 68,565 28,843 17'693 3’675 18,354 19,319 7,682 6’746 4*891 1966. 94'786 74,656 30,961 19,834 3'751 20,110 20,130 7’844 7,144 5'142 1967. 99',228 77',946 31', 197 21,328 3’,731 21 390 21', 282 8’267 7395 5’,420 1967-—Aug............................. 95,684 75,889 31,455 19,755 3,743 20,936 19,795 8,136 6,368 5,291 Sept.............................. 95’886 76,039 31,296 19’914 3’742 21,087 19,847 8'179 6'387 5,281 Oct............................... 96394 76,223 31,237 20,042 31746 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.............................. 99328 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 201785 3,653 21 ,752 20,345 81325 6*386 5; 634 Mar.............................. 97 ,’875 77,581 31,380 20,692 3336 21,873 20,294 81370 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 6330 5’667 June............................. 101'467 80,363 32,774 21'176 3,727 22 386 21,104 8^519 6312 5’673 July.............................. 102339 81,308 33,253 21 '356 3,769 22,930 21,131 8,543 6,'955 5'633 Aug.............................. 103375 82 ,’455 33,684 21'637 3,823 23,311 21,320 8; 622 7,085 5,'613 1 Holdings of financial institutions; holdings of retail outlets are in­ hold, family, and other personal expenditures, except real estate mortgage cluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Note.—Consumer credit estimates cover loans to individuals for house­ Statistics, 1965, and May 1966 Bulletin. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m C b e a o r n m c k ia s ­ l fi S n c a o a l n s e . c s e u C n r i e o d n i s t fi s C n u a m o n n e c ­ r e 1 Other1 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............................. 6 385 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............................. 43 327 37’935 17 308 11,273 4’330 3,799 1 ,525 5'595 2321 1 ,058 293 342 1,481 1962............................. 48’034 41,782 19,005 12'194 4’902 4'131 1 '550 6,252 3313 1 '073 294 345 1,527 1963 ............................. 54,158 47,405 22,023 13,523 5,622 4,590 1 347 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 3 322 1,152 286 370 1'677 1965 ............................. 68,565 60373 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—Aug................... 75,889 67,273 33,536 16,755 8,991 6,036 1 ,955 8,616 n.a. n.a. n.a. 508 n.a. Sept.................. 76,039 67,376 33,637 16,701 9’026 6,067 1 ’.945 8 363 n.a. 507 n.a. Oct.................... 76,223 67313 33323 16398 9,054 6 086 1 ’952 8,710 n.a. n.a. n.a. 506 n.a. Nov............ 76,680 67,763 33,819 16,722 9,113 6,138 1,971 8,917 n.a, n a. n.a. 506 n.a. Dec................... 77,946 68 373 33 392 16*851 9,169 6,294 1,967 9373 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 68315 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. 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. J line................. 80’363 71 3^2 35 380 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. Aug................... 82,455 73,262 37J13 17'454 9,’955 6326 2J14 9J93 n.a. n.a. n.a. 557 n.a. 1 Consumer finance companies included with “other” financial insti- 3 Automobile paper only; other instalment credit held by automobile tutions until 1950. dealers is included with “other” retail outlets. 2 Includes mail-order houses. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ CONSUMER CREDIT A-53 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair paper O co th n e ­ r and 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 e s r e l r t o n i a o i n z n a s ­ loans End of period Total m p o ap b e il r e s g p u o a m o p d e e s r r m i l z o 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 >97 1,363 167 201 66 1945........................ 745 66 143 114 110 312 1945................................ 300 164 24 58 54 I960........................ 16,672 5,316 2,820 2,759 2,200 3,577 I960................................ 11,472 7,528 2,739 139 1,066 1961........................ 17,008 5 >91 2'860 2,761 2’ 198 3'798 1961................................ 11 >73 6’811 3,100 161 1,201 1962........................ 19,005 6,184 3’451 2’824 2 >61 4,285 1962................................. 12’194 7,449 3,123 170 l’452 1963......................... 22,023 7,381 4,102 3,213 2,377 4,950 1963................................ 13,523 8,228 3,383 158 1,754 1964......................... 25,094 8’691 4’734 3’670 2’,457 5’542 1964................................ 14>62 8,701 3 889 142 2’030 1965......................... 29’173 10’310 5'721 4’266 2'543 6’333 1965............................... 16J38 9 241 4 429 123 2,'345 1966......................... 32,155 11,370 6,165 5’101 2,'567 6'952 1966................................ 16,936 9,391 4,829 110 2’606 1967......................... 33’992 11 ’,400 6,569 5’808 2,523 7’692 1967 ............................... 16,851 8 959 5 017 103 2 >72 1967—Aug.............. 33,536 11,538 6,494 5 ,556 2,536 7,412 1967—Aug..................... 16,755 9 200 4,781 107 2,667 Sept.............. 3 ’637 11 ,’497 6'490 5’619 2*538 7’493 Sept..................... 16>0l 9,079 4 824 107 2’691 Oct............... 33,723 111463 6,515 5,656 2,539 7,550 Oct............. 16,698 9,024 4,863 107 2,704 Nov.............. 33’819 11,428 6,545 5’,696 2,534 7,616 Nov................... 16,722 8,990 4 907 105 2>20 Dec............... 33'992 11,400 6,’569 5,’808 2'523 7,692 Dec., ................. 16,851 8,959 5 017 103 2 >72 1968—Jan............... 34,017 11,364 6,600 5 850 2,482 7,721 1968—Jan...................... 16,775 8,873 5 032 98 2,772 Feb............... 34’155 11 >01 6,653 5,867 2’459 7'775 Feb..................... 16 >06 8 845 4'977 93 2,791 Mar.............. 34,411 11'489 6 >49 5,897 2,444 7,832 16,700 8,865 4 947 89 2,799 Apr.............. 34,908 11 ’,643 6,854 5 ,985 2,457 7,969 Apr..................... 16,790 8,931 4 957 86 2,816 May............. 35 450 11'841 6>82 6*076 2'479 8 >72 May.................... 16,892 9,004 4>73 83 2 >32 J une............. 35,980 12,043 7,101 6,172 2'502 8,162 June.................... 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 5,043 82 2,886 Aug.............. 37>I3 12,465 7,260 6 >23 2>65 8 ,’400 Aug..................... 17^54 9,329 5,098 80 2 >47 See Note to first table on previous page. See Note to first table on previous page, INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal 1 19 9 4 3 1 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7 5 8 7 9 pap 1 e 2 8 r 1 2 g p o a o p d e 3 2 s r 6 4 iz lo a a ti n o 1 1 s n 4 5 loa 6 7 n 6 8 s 9 5 End of period Total b C m c a o i n e a m k r l ­ s ­ t O f u i i n c t n t i i s h o a a t l e n n i ­ r ­ s s m p t D o a e r e r n e t ­ ­ t s 1 o O r u e t t t h l a e e i t l r s c C a r r e d d s i t 2 S c e r r e v d ic it e 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................................ 9,654 1'819 743 832 6 >57 1941............. 3 >87 693 152 275 1,370 597 1962................................ 10 583 2’111 751 815 6’906 1945............. 3,203 674 72 290 1,322 845 1963................................. 11,859 2,394 835 870 7,760 1960............. 13,196 3,884 623 941 3,952 436 3,360 1964................................ 13 285 2'699 997 933 8,656 1961............. 14,151 4,413 723 948 3,907 469 3,'691 1965 ............................... 14 >62 3'124 1,153 1 ,009 9,676 1962............. 15’130 4 >90 766 927 4 >52 505 3 >90 1966............................... 16’474 3'545 1 >03 I >74 10'552 1967 ............................... 17 430 3 >63 1 336 1,105 11,226 1963............. 16,303 5,205 912 895 4,456 520 4,315 1964............. 17,894 5 >50 1,004 909 4,756 635 4’640 1967—Aug..................... 16,982 3,715 1,310 1,100 10,857 1965 ............. 19’319 6,587 1 ’095 968 5,055 723 4 >91 Sept..................... 17,038 3 >23 1 >15 1,097 10>03 1966............. 20> 30 6’714 I >30 n.a. n.a. 874 5 > 42 Oct...................... 17’092 3,729 1 >19 1,100 10,944 1967 .............. 21 >82 7 >64 1>03 n,a. n.a. 1,054 5 >20 17’222 3,748 1 >26 1 '109 11 >39 Dec..................... 17>3O 3’763 1 >36 I ,105 11,226 1967—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 >31 1 >36 1,101 11 >86 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 >42 Dec... 21,282 7,064 1 ,203 n.a. n.a. 1 ,054 5,420 Apr..................... 17,634 3’816 1 >69 1'106 H >43 May.................... 17 889 3,882 1,396 1,137 11 >74 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. I ,040 5,634 July..................... 18,413 4,007 1 >51 1,155 1 1 >00 Mar... 20,294 7,136 1,234 n.a. n.a. 1 ,025 5,661 Aug.................... 18 >95 4 >73 1 >80 1,178 11 ,’964 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 June,. 21 ,104 7,259 1 ,260 n.a. n.a. 1,144 5,673 Note.—Institutions represented are consumer finance companies, credit July.. . 21,131 7,279 1,264 n.a. n.a. 1 ,227 5,633 unions, industrial Joan companies, mutual savings banks, savings and Aug.. . 21,320 7,338 1 ,284 n.a. n.a. 1 ,288 5,613 loan assns., and other lending institutions holding consumer instalment loans. See also Note to first table on previous page. i 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 □ OCTOBER 1968 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a ir ti o an n d l oans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 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 1’967......................................... 81'263 27'221 25,787 2 076 26 179 1967—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 2251 2 J67 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 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............................... 7^245 372 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 1 87 190 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 Aug.............................. 7^788 8,070 2; 679 2,783 2 332 2 347 187 223 2; 490 2^17 Repayments 1961......................................... 47,700 16,472 14,246 2,015 14,967 1962....................................... 50,620 17,478 14,939 1,996 16,206 1963........................................ 55,171 19,400 15,850 2,038 17,883 1964........................................ 61,121 21,676 17,737 2,078 19,630 1965........................................ 67,495 24,267 19,355 2,096 21,777 j 966........................................ 72,805 26,373 21,361 2,060 23,011 1967........................................ 77,973 26,985 24,293 2,096 24,599 1967—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 2,223 183 185 2,118 2,120 Feb.............................. 6,679 6,512 2,308 2,225 2,110 2,166 170 163 2,091 1,958 Mar.............................. 6,814 6,846 2,330 2,346 2,173 2,233 182 179 2,129 2,088 Apr.............................. 6,800 6,930 2,339 2,403 2,159 2,170 173 177 2,129 2,180 May............................. 6,869 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 2,079 169 165 2,195 2,129 July.............................. 7,001 7,261 2,405 2,507 2,185 2,216 177 184 2,234 2,354 Aug........................ 6,935 6,923 2,352 2,352 2,181 2,166 165 169 2,237 2,236 Net change in credit outstanding 2 1961......................................... 696 -465 332 53 777 1 %2......................................... 4,506 2,318 746 55 1,388 1963 ...................................... 6,124 2,892 1,252 160 1,820 1964 ...................................... 6,384 2,759 1,736 126 1,763 1965 ................... 8,013 3,647 2,099 142 2,125 1966....................................... 6,091 2,118 2,141 76 1,756 1967................................... 3,290 236 1,494 -20 1,580 1967—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 -23! -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 1 1 28 203 308 July.............................. 682 945 264 479 178 180 21 42 219 244 Aug...............................I 853 1,147 327 431 251 281 22 54 253 381 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 arc based on accounting records and often include Section 16 (New) of Supplement to /tanking and Monetary Statistics, 1965, financing charges. Renewals and refinancing of loans, purchases and and May 1966 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ CONSUMER CREDIT A-55 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p f a in n a i n e c s e Ot i h n e s r ti t f u in ti a o n n c s ial Retail outlets Period S.A.' N.S.A. S.A.1 N.S.A. S.AJ N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1961........................................ 48,396 17,711 10,667 12,282 7,736 1962........................................ 55,126 201474 11,999 13,525 9,128 1963........................................ 61,295 23,344 12,664 14 894 10 393 1964........................................ 67,505 251950 14,020 16 251 11 284 1965........................................ 75,508 29^738 15,075 18,120 12 575 1966........................................ 781896 31,114 14,951 18,986 13,845 1967........................................ 81,263 32’314 14,675 19 633 14 641 1967—Aug........................... 6 929 7,223 2,796 2,945 1,203 1,260 1 ,677 1,775 1 253 1 ,243 Sept.............................. 6,973 61590 2,828 2,636 1 '206 1,142 1 ,675 1,588 1 264 1 1224 6’942 6'912 2’767 2’769 1 ’.263 1 1284 I ’686 1 606 1 ’226 i '253 Nov............................. 7,032 7,032 2,785 2,633 1,283 1,283 1 ,698 i ,707 1 ^266 1 ,409 Dec.............................. 7^035 7^829 2^814 21650 1 ,’275 1,376 1 ,656 1,837 1,290 1 ^966 1968—Jan............................... 7 089 6 363 2,884 2,710 1 264 1,141 1,668 1,463 1,273 1 049 Feb.............................. 7’245 6,372 2,967 2’725 i 1309 1 J57 1 ,732 1 ,535 1,237 955 Mar............................ 7,380 7,100 3'038 2,962 1,329 1,289 1 ,733 1 1680 1 '280 1,169 Apr............................. 7 342 7'694 31036 3,323 1 ’289 1 ’,336 1 ’708 1,795 1,309 1 240 May........................... 7 479 7’883 3’091 3,370 1 ,314 1 1373 1 1809 1 888 1,265 1 ’252 7 516 7,693 31067 3^157 1 792 1,350 1,846 1,923 1 311 1 '263 July............................. 7 683 8’206 3'149 3,479 11393 11504 1,844 1 ’970 1 ,297 1 1253 Aug............................. 7,788 8,070 3 ,'222 3,382 1^394 1,443 1,857 1,948 1,315 1 '297 Repayments 1961........................................ 47,700 18,294 10,943 1 1 ,715 6,749 1962........................................ 50,’620 18,468 11,434 12’593 8,125 1963 ...................................... 55,171 20,326 12,211 13,618 9,016 1964........................................ 61’121 22'971 13’161 14,825 10,164 1965........................................ 67,495 25'663 13,699 16^443 111690 1966......................................... 72,805 28,132 14,153 17,474 13,046 1967........................................ 77’,973 30,477 14,760 18’677 14’059 1967—Aug............................. 6,585 6,682 2,566 2,644 1 ,255 1 ,252 1 ,578 1,592 1,186 1,194 Sept............................. 6.689 6’440 2,616 2^535 1,252 1’196 1 ,615 1 '532 1J206 11177 Oct................. 6 631 6,728 2,600 2,683 1,249 1 '287 1 ’573 1 1552 1,209 11206 Nov.............................. 6,614 6,575 2,579 2,537 1,263 1,259 1,572 1,577 1,200 1 ,202 Dec.............................. 6,652 6’563 2’640 2'477 1’246 1,247 1 ,527 1 '629 1 1239 1 1210 1968-—Jan............................... 6,691 6,842 2,624 2,685 1 ,245 1,217 1,607 1,609 1 ,215 1 ,331 Feb.............................. 6,679 6.512 2; 665 2,587 1 ,225 1,226 1,580 1 '465 1 1209 1 1234 Mar.. 6,814 6,846 2,720 2'706 1 ;232 1,295 1 ,607 1 '575 1,255 1,270 Apr.............................. 6 800 6’, 930 2'750 2’826 1 1206 1 ’,246 1 ,592 1 '620 1 1252 1 ,238 May............................. 6’869 6,958 2,751 2’828 1 ’252 1 1271 1 '637 11633 1 ’229 1 1226 June........................... 6 884 6,600 2'759 2’627 1 ,210 1,147 1 '656 1 1615 1 1259 1 1211 July.............................. 7,001 7'261 2’807 2’938 1 ,302 1,334 1 '657 1,754 11235 1,235 Aug.............................. 6,935 6; 923 2’,769 2,790 1 ,284 1 1254 1,669 1,666 1,213 1 ,213 Net change in credit outstanding 2 1961........................................ 696 335 -199 578 -20 1962........................................ 4,506 1,997 921 932 656 1963 ............................. 6,124 3,01 8 1,329 1,276 501 1964........................................ 61384 3,065 1,239 1 ,'426 654 1965........................................ 81013 41075 1 ,376 11677 885 1966........................................ 61091 2,982 798 11512 799 1967........................................ 3’,290 1 ',837 -85 956 582 1967—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 26 632 1 ,093 308 530 82 203 190 308 52 52 July.............................. 682 ’945 342 541 91 170 187 216 62 18 Aug.............................. 853 1,147 453 592 110 189 188 282 102 84 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: S.A. □ OCTOBER 1968 MARKET GROUPINGS (1957-59 = 100) 1957-59 1967 1967 1968 pro­ aver­ Grouping por­ age^’ tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July' Aug. Total index..................................... 100.00 158.0 158.1 156.8 156.9 159.5 162.0 161.2 162 0 163.0 162.5 164.2 165.4 165.6 163.9 Final products. total........................... 47.35 158.3 158.2 157.0 156.9 160.0 161 9 160.8 162.0 163.5 161.7 163.0 164.9 164.5 164.6 Consumer goods............................ 32.31 148.4 148.6 147.0 147.9 150,1 152 8 151 3 152.9 155.0 153.5 154.6 156.4 156.2 156,5 Equipment, including defense.... 15.04 179.6 178.9 178.6 176.1 181.1 181.5 181.4 181.6 181.8 179.4 181.1 183.0 182.3 181,8 Materials........................................ . 52.65 157.7 157.9 156.7 157.4 159.5 162.2 161.7 161 .8 162.8 163.1 165.2 166.2 166,7 162.9 Consumer-goods Automotive products........................... 3.21 149.1 161.1 142.1 145.2 152.4 170.0 164.2 162.7 173.4 168.7 178.1 180.7 180.4 176.9 Autos.................................................. 1,82 145.7 163.7 133.4 135.3 144.5 175.1 163.2 158.0 172.7 166.8 182.3 183.5 183,7 182.4 Auto parts and allied products........ 1.39 153.6 157.8 153.6 158.2 162,9 163.3 165.4 168.8 174.4 171.2 172.6 177.0 176.0 169.7 Home goods and apparel.................. 10.00 149.9 147.9 148.7 149.9 152.7 152.4 151.4 153.0 155.3 153.8 153.7 149.9 153.4 154.7 Home goods...................................... 4.59 166.0 163.4 164.1 166.4 170,8 168.3 169.1 171.5 172,9 170,1 170.4 172.0 171.8 172.1 Appliances, TV, and radios.......... 1.81 159.5 155.0 155.9 162.9 168,4 158.7 159.3 162.6 164,8 156.8 156.7 161.2 160.9 161.9 Appliances.................................. 1.33 163.1 153.9 153.7 164.2 168.7 160.8 165.1 165.9 168,4 158.9 158.5 164.7 165.4 164.6 TV and home radios................. .47 149.2 158.3 162.0 159.2 167.6 152.7 142.7 153.1 154.8 151.0 151.7 151.3 148.5 154.5 Furniture and rugs........................ 1.26 159.6 156.9 157.8 159.7 163.4 166.5 166.4 169.2 169,9 170.1 174.6 174.5 173.8 172.9 Miscellaneous home goods........... 1.52 179.0 178.8 179.0 176.1 179.6 181.3 182.9 184.0 185,0 185.9 183.1 182.8 183,0 183.4 Apparel, knit goods, and shoes........ 5.41 136.2 134,8 135.7 136.0 137.4 139.0 136.5 137.3 140.3 139,9 139.5 140.8 139.8 Consumer staples............................... 19.10 147.5 146.9 146.9 147.3 148.4 150.1 149.0 151.2 151.7 150.7 151.2 153.2 153.5 154.1 Processed foods................................. 8.43 130.0 129.8 129.7 129.5 129.5 130.4 129.5 130.6 131,3 131.2 131.0 132.2 132,9 133.5 Beverages and tobacco........ .... 2.43 136.4 137.9 135.8 137.6 139.2 142,2 136.8 141.8 141 7 139.4 136.6 142.9 139.6 Drugs, soap, and toiletries............... 2.97 183.0 178.0 179.8 181.6 183.1 184.3 184.2 185.9 187.5 186,1 190.0 192.0 192.4 193.5 Newspapers, magazines, and books. 1.47 140.1 140.9 136.2 134.8 135.7 138.5 138.4 141 .5 142.1 142.1 145.3 143.6 144.2 143.6 Consumer fuel and lighting. .... 3 67 168 3 168.8 170,5 171.2 174.1 176.8 176.9 179.6 179.4 177.3 177.0 180.8 181.1 Fuel oil and gasoline..................... 1.20 132.5 130.7 138.5 138.1 135.4 137.8 131.8 135.4 136,2 136.3 140.2 142.8 141 .2 138.0 Residential utilities........................ 2.46 185.7 187.4 186.0 187.4 192.9 195 8 198.8 201.2 200.4 197 2 194.9 199.3 200.6 Electricity.................................... 1 72 199.8 201.6 199.5 201.4 209.1 213.0 215 4 218.4 217.3 212.5 209.0 218.0 219.0 Gas......................... 74 Equipment Business equipment............................. 11.63 182.9 180.6 179.8 176.9 183.5 183.4 183.3 182.9 183.3 180.9 182.5 184.3 183.0 182.1 Industrial equipment...................... . 6.85 170.3 166.8 166.6 162.3 170.4 168.9 168,0 165.8 167.0 165.9 165.8 168,0 167.4 164,4 Commercial equipment..................... 2.42 200.9 201 .9 200.3 199.0 200.9 204.7 204.2 206.1 205 4 204.4 203.6 204.5 201.0 205.0 Freight and passenger equipment... 1 .76 215.4 214.1 210.4 209.9 222,9 228.4 226.4 230.1 227.8 220.8 231.5 234.1 234.3 232.8 Farm equipment................................ .61 158.7 154.3 158.5 157.5 147.2 131.2 148.3 146.4 150,6 140.3 145.1 144.2 139.5 Defense equipment........ 3.41 Materials Durable goods materials..................... 26.73 152.1 151.8 148.5 149.0 152.3 155.7 154.9 155.4 156 7 157.1 159.4 159,7 159.8 152.0 Consumer durable............................. 3.43 144.6 142.7 134.9 133.3 143.8 159.4 162.3 162 2 160,1 154.6 163.0 166.2 167.5 152.6 Equipment.......................................... 7.84 184,5 186.3 184.7 184.1 186.0 184 9 183.9 186.7 185,1 181.9 183.6 184.7 185.7 185.1 Construction...................................... 9.17 140.1 139.0 140.0 140.0 141.5 142.4 142.8 144.8 145.8 144.4 145,3 144,0 143,7 142.3 Metal materials n.c.c......................... 6.29 133.5 129,8 125.1 128.6 132.2 139.3 137.3 141 4 140.7 144.5 145.0 143.3 146.6 128.6 Nondurable materials........................ 25.92 163.4 164.2 165.2 166.0 166.9 168.9 168.7 168.3 169.1 169.3 17/. 2 172.9 173.9 174.0 Business supplies.............................. 9.11 152.2 151.7 153.1 152.5 153.2 154 7 154.4 151 1 150,1 152,0 154.5 159.3 157.9 157.6 Containers...................................... 3.03 148.5 143.0 150.4 153 7 152.6 152 0 154.3 144.5 142.8 150.9 155.6 158.9 154,3 148,3 General business supplies............ 6.07 154.1 156,0 154.5 15! .9 153.5 156.0 154.5 154.4 153.8 152.6 154,0 159.5 159.7 162.3 Nondurable materials n.e.c............... 7.40 201 .8 198.9 203.0 206.8 209.3 216.1 213.5 213 9 215,7 214.9 216,4 215.8 218.1 220.4 Business fuel and power................... 9 41 144.0 149.1 147.3 146.9 146.9 145 6 147.2 149.1 150.8 150.2 151.7 152.8 154.6 153.5 Mineral fuels.................................. 6.07 128.9 137.1 133.4 131.0 130.3 128^7 128.9 131 .4 134.3 132.6 133.7 135.9 137.9 136.8 Nonresidential utilities.................. 2.86 183.2 182.5 183.8 187.9 188,5 188.3 193.4 194.4 193.6 194.6 197.0 196.4 197.6 Electricity................... 2 32 185.7 185.1 186.6 191 6 192.2 191.8 197.7 199.0 198,3 199,2 202.0 198.9 200,2 General industrial. . . 1 03 182.7 183.9 185.5 186.6 187.7 188.0 192.0 193.0 191 .8 195.4 197.4 193.7 195.1 Commercial and other . . 1 *21 196.8 194.5 196.1 204.9 205.3 204.1 212.0 213.8 213.4 212.1 215.7 213.0 214.8 Gas.............................................. 54 Supplementary groups of consumer goods Automotive and home goods....... 7.80 159.0 162.5 155.0 157.7 163.2 169.0 167.0 167.9 173,1 169.5 173.6 175,6 175.3 174.1 24.51 145.0 144.2 144.4 144.8 145.9 147.6 146.2 148.1 142.9 148.3 148.6 150.6 150,5 For footnotes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ INDUSTRIAL PRODUCTION: S.A. A-57 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1967 1968 pro­ 1967 Grouping por­ aver­ tion age p Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June r July' Aug. Total index................................... 100 00 158 0 158,1 156.8 156.9 159 5 162.0 161.2 162.0 163.0 162.5 164 2 165 4 1 65 6 1 63 9 Manufacturing, total........................ 86.45 159 6 159.4 158.1 158,3 161.1 164.0 162.7 163.6 164.6 163.7 165 8 167.1 166 7 165 0 Durable................................... 48.07 163 8 163.6 161.1 160.7 164.1 168.1 167.2 167.6 168.2 167.2 169 8 170 8 170*3 167 0 Nondurable.................................... 38.38 1544 154.0 154.2 155.2 157.2 158.9 157.1 158.6 160.0 159.5 160 8 1 62 4 1 62 2 162 4 Mining................................................ 8.23 123 5 127.8 124.3 122.4 123.6 122.3 121,6 123.9 126.2 127.1 126 9 128 9 130 7 129 4 Utilities............................................... 5.32 184.4 185.4 185.6 188.7 191.5 192.6 196.7 199,0 198.0 196.5 196.1 197 7 199^0 199.8 Durable manufactures Primary and fabricated metals...... 12.32 145.4 142.3 141.8 143.3 145.8 150.3 148.3 150.8 151.7 151.2 155.7 156.2 154.6 141.0 Primary metals................................... 6.95 132.5 129.3 129.2 131 .7 135.0 1 40.9 136.3 139.3 140,2 143.3 148 5 148.6 145 9 124 0 Tron and steel................................. 5.45 126.8 124.3 125.6 127.7 133.3 1 40.9 1 34.2 137.8 140.8 143.1 146 4 148 4 1 46 7 113 8 Nonferrous metals and products., 1.50 153.1 144.2 141.1 142.8 142.2 145.3 145.6 154.1 151.3 154.5 161.2 150.4 153> 156.2 Fabricated metal products............... 5.37 162.0 159.1 158.1 158.2 159.8 162.4 163.9 165.7 166.6 161.4 165 0 166 0 165 8 163 0 Structural metal parts................... 2.86 158.1 156.8 156.0 156.4 158.8 160 0 159.4 160.9 162.7 156.9 159.8 161.6 1592 1 58 9 Machinery and related products........ 27.98 177.6 179.6 175.0 173.4 177.8 181.7 181.6 181.5 182.3 179.2 181.4 183.1 183.3 183 8 Machinery.......................................... 14.80 183 4 182.8 1 82.2 179.6 183.2 182.2 183.4 183.2 183.3 179.4 179 9 181.1 181 5 182 9 Nonelectrical machinery........... 8.43 183 4 182.6 182.1 177.2 180.9 179.5 180.7 180.6 180.2 176.9 176 6 177 7 177 8 179 2 Electrical machinery...................... 6.37 1833 183.2 182,4 182.8 186.3 185.8 186.9 186.6 187.3 182.8 184.2 185 5 186 5 187 7 Transportation equipment................ 10.19 166 0 171.9 159.2 159.2 165.6 177.5 175.6 175.1 177.6 175.3 1 80 4 182 6 183 2 181 3 Motor vehicles and parts.............. 4.68 147 0 158.0 129.4 128.6 141.4 166,9 162.2 161.1 167.8 164.8 173’6 174.2 174 3 174 5 Aircraft and other equipment.... 5.26 182.2 183.6 184.3 185,2 186.0 186.3 186.8 186.5 185.4 183.5 185.4 188.6 189.3 185.8 Instruments and related products. .. 1.71 184.8 183.2 183.1 183.2 185.4 186.3 186.7 184.7 183.8 181,4 181 .2 181.3 179.2 182.3 Ordnance and accessories................. 1 .28 Clay, glass, arid lumber.................... 4.72 130 6 126.7 129.6 131.4 132.4 137.0 132.5 130. 7 128 8 138.0 137 7 136 8 135 7 133 8 Clay, glass, and stone products........ 2.99 138* 7 1 36.9 138.4 139.7 139.2 143.6 140.8 1 37.3 hi .6 146.1 146 4 145 1 144 0 145'5 Lumber and products...................... 1.73 116 5 109,2 114 3 1 17.0 120 6 125.7 118.1 119 3 125 0 123.9 122 7 122 5 121 5 113 5 Furniture and miscellaneous............... 3.05 162.6 159,9 161.4 160.9 161.5 163.3 165.2 166.9 166.9 166.5 169 8 169 4 168. 2 169.3 Furniture and fixtures...................... 1 .54 167 8 164 8 166.3 166.6 167 8 170.7 171.3 173 0 173.7 174.1 1789 177'7 175 3 177 4 Miscellaneous manufactures............. 1.51 157! 4 154,9 156.4 155.0 155.1 155.7 158.9 160 7 159.9 158 8 160 6 160^9 161 0 1611 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.6 137.6 139.1 140.4 143.0 145.9 141.0 141.9 143.9 142.9 144.1 145.5 144.4 143.9 Textile mill products......................... 2.90 142.2 138.7 141 3 144.9 147 4 151.6 147.6 148.8 149.9 146.3 147 2 149 8 150.7 149 4 Apparel products............................... 3.59 147,7 146 4 1 46 8 146.2 148.6 150.9 145.2 146.4 148 5 148.9 149 6 151 3 1 50.7 Leather and products...................... 1.11 1065 106 5 108 4 109.7 113.3 115.1 110.4 109,7 113.7 114.6 118 0 115 8 107.7 Paper and printing.............................. 8.17 149 6 150 3 148 5 148.6 149.9 149 5 148.6 150.6 15 7,0 151 6 154 5 155 2 154.9 154 2 Paper and products......................... 3 43 153 6 152 8 152 9 154,5 156 1 157 6 155,9 157 1 159.2 159 5 161 i 162 9 162 4 1594 Printing and publishing..................... 4 74 146* 8 148 6 145 4 144.3 145 5 144 1 143.3 145 9 146 8 145 8 149 8 149.6 149 5 1 50 5 Newspapers.................................... 1 53 134 2 1370 135 7 134,0 134.4 129 9 129.9 131 4 133 7 130 8 1344 1347 134.7 136 0 Chemicals, petroleum, and rubber.... 11.54 189,5 189.5 191.2 192.8 195.8 199.0 197.7 200.2 201.6 200.9 203.1 205.3 205.9 206.8 Chemicals and products................... 7 58 203 8 200 7 202 3 205.5 208 0 210 5 211.8 213 8 215 0 215.2 216 6 219 4 219 9 220 6 Industrial chemicals....................... 3 84 234 8 231 4 234 2 238.8 242 3 246 9 250.9 251 8 252 7 256.2 255 5 258 1 259.6 Petroleum products........................... 1 97 1339 133 2 1 37 0 137.6 136 8 1 3R0 1 34 8 1 35 7 1 36 1 137 3 139 9 140 6 1 40 1 139 1 Rubber and plastics products........... 1 ^99 190'3 203* 1 202*4 199.1 207'. 5 2154 206 J 2123 215^7 209 h 2143 215 8 2I7J Foods, beverages, and tobacco........... 11.07 131 5 131 0 130 4 131.1 132.2 133.1 132.0 133. 1 133.7 133.6 132 9 134.5 134.2 134.9 Foods and beverages......................... 10 25 132 4 1317 1312 132.2 133 5 1 34 1 133.5 133 2 1 34 5 135 3 1340 135 5 135.1 135 8 Food manufactures........................ 8.64 1301 129 0 |2R 9 129.3 130.2 1 305 130,7 1 30.7 1314 131.9 1319 1 32 2 1 32.7 1 33 2 Beverages........................................ 1.61 144 7 146 3 143 8 147.5 151.2 153 3 148.2 146 7 151 2 153.3 14S 0 153 1 147.9 Tobacco products.............................. 82 liolo 12L4 120.2 118.0 115 5 120'5 114 4 1321 122h 112 1 120I0 122*8 123 4 Mining Coal, oil, and gas.............................. 6 80 122.4 128 8 12^ 4 123.7 124 5 122 2 121.9 173 2 126 0 124 7 125 6 177 7 129.6 128 0 Coal.................................................... 1 ' 16 1181 117 2 115 5 112 3 115 3 116 1 113 4 116 8 126 0 124 4 120 4 126 7 126 6 1218 Crude oil and natural gas................. 5 64 173 7 1312 177 5 126'1 126* 4 123'5 123.6 124 5 126 0 124 8 126 6 127'9 UOh 129 3 Oil and gas extraction................... 491 1314 141 9 137 7 135 4 133 9 1317 132.5 1 34 8 1 36 2 134 5 136 8 1 38 1 140.6 140 4 Crude oil..................................... 4'25 126 4 138 ’0 1 33 1 130 3 128'.7 126^4 127.4 129*7 130J9 128 7 131'2 1 32 4 135 5 1349 Gas and gas liquids................... 66 163.3 Oil and gas drilling....................... 73 67 9 58 9 58 5 63 4 76 1 68 0 63.5 55 0 56 7 59 1 57 7 59 1 60 0 Metal, stone, and earth minerals....... 1.43 128.8 123.4 119.1 116.2 119.5 122.7 120.3 127.0 127.4 138.3 133.5 134.3 135.8 135.9 Metal mining..................................... 61 119 9 105 7 95 6 93 8 93 2 95 7 100.0 102 8 108 7 139 9 131 4 1 30 8 134 1 134 8 Stone and earth minerals.................. 82 135 4 136^6 136 5 132'. 9 139^0 142^7 135.3 1 450 1412 137 J 1 35 0 136h 137 1 136^8 Utilities Electric........................................... 4 04 191 7 192 1 192 1 195 8 199 4 200 8 205.2 207 3 206 4 204 9 205 0 207.0 208.2 Gas.................................................... 1*28 161.2 164 J 165.1 166 5 166'.6 166’8 169.8 172', 8 171.8 170h 168'4 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,) arc 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. □ OCTOBER 1968 MARKET GROUPINGS (1957-59 = 100) 1957-59 1967 1968 pro­ 1967 Grouping por­ aver­ tion age’ Aug. Sept. Oct. Nov, Dec. Jan. Feb. Mar. Apr. May Juner Julyr Aug. Total index..................................... 100.00 158.0 157.9 161.1 161 .5 161.2 160.7 159,1 162.7 164.6 163.2 165,2 169,2 160,0 163,0 Final products, total........................... 47.35 158.3 156.9 163.3 162.2 161.3 161.0 159.1 162.4 164.8 160.8 162.6 168.8 159.1 162.9 Consumer goods........................... 32.31 148.4 147.7 155.7 155,4 152,0 150.3 148.9 153.4 156.2 151.7 153.7 161.2 149,6 155.6 Equipment, including defense.... 15.04 179.6 176.4 179.5 176.8 181.3 183,9 181.0 181.7 183.4 180,4 181.6 185.1 179,5 178,8 Materials............................................ 52.65 157.7 158.9 159.1 160.8 161.1 160,4 159,1 162.8 164.5 165.4 167,6 169.5 160.9 163,7 Consumer goods Automotive products.......................... 3.21 149.1 106.1 148.2 155.6 159.5 177.7 173.0 171.2 183.7 178. 7 189.5 194.7 148.4 100.9 Autos.......................................... 1.82 145.7 62.2 140.1 148.8 159.0 192.6 179 5 173.8 193.4 83.5 202.4 208.3 134.1 45.6 Auto parts and allied products........ 1.39 153.6 163.9 158.8 164.6 160.0 158.1 164.5 167.9 170,8 72.3 172,7 176.7 167,3 173.7 Home goods and apparel............. 10.00 149.9 149.0 155.0 159.6 157.8 148.0 145.5 159.0 160.6 154.9 153.1 161.0 140.5 156,2 Home goods...................................... 4.59 166.0 159.3 172.0 180.1 180.3 172.6 1 64.9 177.2 177,1 72.5 170.8 177.4 156.9 168.8 Appliances, TV, and radios.......... 1.81 159.5 140.4 165.1 182.2 181 .4 160.6 159.1 180.9 176.9 68,7 163.3 171 .7 139,7 149.3 Appliances.............................. 1.33 163.1 134,5 160.4 180.1 178.2 163,4 1 68.7 187.9 185,3 80.3 167.4 180.3 149,4 144.7 TV and home radios................. .47 149.2 157.2 178.2 187.8 190.4 152.7 131 .9 161 . 1 153,1 35.9 151.7 147.5 112,4 162,2 Furniture and rugs........................ 1.26 159.6 160,5 163.8 168.0 169.4 172.7 1 62.7 167.2 167.9 65.3 168.0 174.5 165.5 176.9 Miscellaneous home goods........... 1.52 179.0 180.6 187.1 187,7 187.9 186,7 173.8 181,2 184.8 83.1 182.0 186.4 170.2 185.2 Apparel knit goods and shoes 5.41 136,2 140.2 140.5 142.3 138.8 127,2 129,0 143 5 146,6 39.9 138.1 147,1 126.5 Consumer staples................................ 19.10 147.5 154.1 157.4 153.2 147.7 146.9 146.7 147.4 149.2 145.5 148.1 155.8 154.6 164.4 Processed foods.................. 8.43 130.0 137.1 149.7 143.7 134.4 128,2 123.0 122.1 123,8 22.8 125.1 132.2 132.2 145.5 Beverages and tobacco.................. 2.43 136.4 149,3 1 39.3 141.6 131.9 123.1 120.1 129.8 138 5 41.0 146.7 163.7 146.4 Drugs, soap, and toiletries............... 2.97 183.0 183.9 185.2 186.0 184,0 185.2 182.9 185.9 189.4 83,7 192.8 198.7 187,6 199,9 Newspapers, magazines, and books. 1.47 140.1 142.6 137.4 134.7 133.9 138.2 137.2 140.9 144,2 42.7 144.9 143,0 142.8 145.3 Consumer fuel and lighting 3.67 168.3 176.7 172.3 162.5 163.9 177,8 192.2 187.6 183.2 69.3 165.7 174.1 189,1 Fuel oil and gasoline.................... 1.20 132.5 134.5 138.5 134.5 134,6 141 .0 137.5 139.1 134.9 29.3 135,6 141.3 143.6 142,2 Residential utilities..... 2.46 185.7 Electricity.......................... 1.72 199.8 215.7 203.5 185.3 188.0 213,0 244,1 232.8 226.4 700.4 188,1 204.9 234,3 Gas....................... .74 Equipment Business equipment........................... 11.63 182.9 178.0 181.1 177,3 182.2 184.9 182.1 183,0 185.7 182.7 183.6 187.3 180,1 178.7 Industrial equipment........................ 6.85 170.3 166.3 168.1 161.3 168,9 170.8 166.7 165.0 167.2 165.9 166,0 169.7 165.7 163,9 Commercial equipment..................... 2,42 200.9 201.9 203.3 202.4 205.9 209,2 204.4 204.7 203.6 200.5 201,2 205.1 198.2 205.0 Freight and passenger equipment... 1 .76 215.4 205.5 212.5 215.1 218,4 226.1 221.9 230.1 238.1 32.9 238.4 243.5 229.6 218.8 Farm equipment.................... .61 158.7 135.8 148.6 147.9 132.6 128.0 151 .0 162.6 170.4 56 7 153.6 152 9 126,7 Defense equipment............ 3.41 Materials Durable goods materials.................... 26.73 152. f 152.5 152.0 152.6 153. 7 154.3 151.7 156.1 157. 7 158.8 162.4 164. 7 155.1 152.9 Consumer durable............................ 3.43 144.6 147.0 133.6 135.3 148.1 167.4 168.0 164.6 164.9 159.2 167.9 169,5 153.3 145,0 Equipment..................................... 7.84 184.5 180,7 182.9 183.5 186.2 187.7 185.6 188 4 187.1 183.9 184.9 186,5 179,9 179,5 Construction...................................... 9.17 140.1 148.7 148.4 147.0 142.0 135.3 129.0 134.7 139.2 143.0 147,5 154,8 149,4 152,3 Metal materials n.c.c......................... 6.29 133.5 126.0 128.9 131 .7 133.3 133.2 133.7 142.7 144.1 150.3 153.0 149.3 133.4 124.9 Nondurable materials......................... 25.92 163.4 165.4 166.4 169.3 168.7 166.7 166.7 169. 7 171.5 172.2 173,0 174.4 166.8 174.8 Business supplies............................... 9.11 152.2 151.9 154.9 158.6 155 3 151 6 149.0 150,6 152.9 56 4 157.1 158.9 146.7 156.2 Containers..................................... 3.03 148.5 153.0 155.5 161.5 148,3 141.4 146.6 142 8 143.5 156.3 157.2 163.8 150.4 158.7 General business supplies............. 6.07 154.1 151.3 1 54.5 157.2 158.9 156. 8 150.2 154.4 157.6 156.4 157.1 156.5 144,8 155.0 Nondurable materials n.e.c............... 7.40 201.8 198.9 203.0 210.9 213.5 211,8 212.4 218,2 220.0 221.3 221.8 222,9 209,4 220.4 Business fuel and power................... 9.41 144.0 152. 1 148.7 146.9 146.3 145 8 147.9 150.1 151.2 48.9 150.1 151 .2 152.9 156,8 Mineral fuels,,,............................. 6.07 128.9 135.5 131,9 131.5 131.5 130.3 130.9 135.6 137,2 134.3 133.8 132.3 131.2 135.2 Nonresidential utilities.... 2.86 183.2 Electricity................................. 2.32 185.7 201.8 197.2 190.2 186.3 187,8 194.4 190,8 191 .8 189 8 195.3 202.9 212.2 General industrial.................. 1.03 182.7 189.4 188.3 187.0 187,7 186.1 191.0 187.0 190.8 192.9 198.4 197.6 198,0 Commercial and other 1.21 196.8 221.7 214.1 202.0 194.0 198.0 206.7 203. 1 201 .9 196.2 202,1 217.3 235.2 Gas......................................... .54 Supplementary groups of consumer goods Automotive and home goods........... 7.80 159.0 137.4 162.2 170.0 171.7 174,7 168.3 174.7 179.8 175.1 178,5 184.5 153.4 140.8 Apparel and staples......... 24.51 145.0 151.1 153.7 150.8 145.7 142.5 142.8 146.6 148.7 144.2 145.9 153.8 148.4 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ INDUSTRIAL PRODUCTION: N.S.A. A-59 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1967 1968 pro­ 1967 Grouping por­ aver­ tion age p Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May Juner July' Aug. Total index..................................... 100 00 158 0 157 9 161 1 161 5 161.2 160.7 159.1 162.7 164.6 163.2 165.2 169.2 160.0 163.0 Manufacturing, total........................... 86 45 159 6 158.3 162.6 163 7 163.5 162.6 160.1 164.2 166.4 165.1 167.4 171.4 160.1 162,8 Durable.......................................... 48 07 163'8 158.9 163 8 164 4 167.1 169,3 166.1 168,9 170.5 169.4 172.1 175.3 164,0 160,2 Nondurable.................................... 38:38 1544 157.4 161 2 162 9 159.0 154.2 152.5 158.3 161.2 159,8 161.6 166.6 155.1 166.1 Mining............................................... 8 23 123 5 129.0 125,6 124.7 124.2 121.4 120.2 123.7 125.3 127,3 128.6 128.5 127.8 130.7 Utilities............................................... 5.32 184> Durable manufactures Primary and fabricated metals.......... 12.32 145.4 142.2 145.1 146.0 147.9 149 3 147.8 152.9 154.9 154.8 158,3 159.6 146.1 140.3 Primary metals................................... 6 95 132 *? 125 4 129 2 133 0 136.3 136,7 138.3 147.2 148.9 151 .5 153,7 150.8 132.8 119.0 Iron and steel................................. 5 45 126 8 120.6 125 6 129.6 134.6 137.4 136.9 144.7 147.8 148,8 149.3 148.4 131.3 109.2 Nonferrous metals and products.. 1,50 153,'l 142,8 142, 1 145.5 142,2 134.3 143.1 156.4 153.0 161 .3 169.7 159.7 138.1 154.6 Fabricated metal products................ 5 37 162 0 163 9 165 7 162 9 163.0 165.6 160.0 160.2 162.6 159.0 164.2 171 .0 163,3 167.9 Structural metal parts................... 2,86 158 1 160 7 162'2 161 1 161.2 161.6 156.2 154.5 156.4 152.2 159.0 164.8 159,2 162.9 Machinery and related products........ 27.98 177.6 169.1 175,8 176.2 180.8 185.7 182.9 184,4 185.9 182,0 184.4 187.6 175.7 169.7 Machinery.......................................... 14 80 183 4 177 2 182 6 181 4 185.2 184.1 182.7 185.6 185.8 182,4 182.4 185.8 175.9 177.8 Nonelectrical machinery................ 8 43 1834 175 8 179 7 174 0 179.8 180,8 180.7 183.1 185,2 182.2 181.0 183.7 175.1 172.6 Electrical machinery...................... 6 37 1 83'3 178 9 186 4 191 3 192.3 188,3 185.3 188,8 186.6 182.6 184.1 188.5 176.9 184.8 Transportation equipment................ 10 19 166 6 1508 160 8 163.6 170.5 185.0 180.4 179.8 183.9 179.0 185.3 188.0 170.5 149.8 Motor vehicles and parts.............. 4.68 147 0 1160 134 0 137.2 149.1 176.1 171 .1 168.6 178.1 171 .3 184.1 |88.3 152.0 109.8 Aircraft and other equipment.... 5,26 182.2 180.3 183,6 186.1 188.8 192.8 188.7 189.3 188.2 184.4 184,7 186.0 184.8 182.5 Instruments and related products.,. 1.71 184.8 184.7 185,1 185.2 186.9 188,5 184.5 183.8 182.9 178.7 179,4 [83.1 177.4 183.8 Ordnance and accessories........... 1.28 Clay, glass, and lumber..................... 4.72 130 6 139 I 138 7 139,2 133.9 125.6 119.0 122.2 124.8 137.6 139.2 146.3 142.4 146.8 Clay, glass, and stone products........ 2.99 1'38:7 149^5 146’. 3 147.4 143.4 134.6 126,7 125.6 126.4 145.5 148.7 155.1 154.5 158.9 Lumber and products....................... 1 73 116 5 121 2 125 7 125 2 117.6 110.0 105.7 116.3 121 .9 123.9 122.7 131.1 121.5 126.0 Furniture and miscellaneous............... 3.05 162 6 164 5 167 4 169.4 169.3 167.3 158.7 162.9 163.8 162.2 165.9 170.4 163.7 174.2 Furniture and fixtures....................... 1 54 167^8 169 4 1713 172.9 172.5 177.2 167.9 171.3 171.6 169.4 173.5 179,1 172,7 182.4 Miscellaneous manufactures............. 1 51 157.4 159 .'5 163^4 165 8 166.0 157.3 149.4 154.3 155.9 154.8 158.2 161 .7 154.6 165.9 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.6 142 0 14? 6 146 9 144.7 136.2 137.9 149.7 152.4 145,8 144,3 151.1 129.2 148.2 Textile mil) products........................ 2 90 142 2 142 2 144 1 152 1 151.1 144.0 146.9 152.5 155,1 149,2 151.6 156.2 136.4 152.4 Apparel products.............................. 3,59 147'7 150 8 1516 153.5 150.1 138,8 139 4 157 4 160.4 153.4 148.9 158.2 133,4 Leather and products........................ 1.11 106.5 1134 110 0 112.4 111.0 107.4 109 8 117.3 119.4 112,3 1 10.9 115.2 96.9 Paper and printing. ............................ 8.17 149.6 149 0 150 5 156.3 153.1 146.1 146.3 151.2 155.4 156,0 156.4 156,3 145.6 153.8 Paper and products........................... 3 43 153,6 1543 1.55? 166.5 156.9 144.4 155.1 161.0 164.0 165.9 163,5 166.6 149.4 161 .0 Printing and publishing..................... 4,74 146,8 1452 1472 149 0 150.3 147.3 139.9 144,2 149.2 148.8 151.2 148.8 142.9 148.6 Newspapers.................................... 1 53 134 2 125 4 13 5 0 143.8 147.8 133.1 119.5 126,1 137.0 139,3 143.3 135.4 117.2 128.8 Chemicals, petroleum, and rubber.... 11.54 189.5 190.8 194.7 197.2 196.4 197.6 195.1 201.9 203.7 203.5 206.8 210.5 198.1 208.1) Chemicals and products................... 7 58 203,8 202 3 206 1 209.0 210,0 211.2 208.2 215,4 217.7 218.9 222.0 224.2 212.9 222.3 Industrial chemicals....................... 3 84 234 8 230,2 237 7 243.6 248.4 251 8 247,1 255 6 255.2 261 3 260.7 259.4 250.5 Petroleum products........................... 1 97 133 9 140 3 142 5 139 0 135,0 134.7 I3o:8 133,0 131.3 131.8 139.9 144.8 147.5 146.5 Rubber and plastics products........... J 99 190. 3 197 0 203 0 210.0 205.4 207.9 208.8 218 7 222 4 215.9 215,4 223,4 191.6 Foods, beverages, and tobacco........... 11.07 131.5 139.5 146.9 143.1 134,1 127.3 122,7 124.2 127,2 126.8 130.0 139.1 135.1 143.7 Foods and beverages......................... 10 25 132.4 140 I 148 6 144.2 135.4 129.7 123.5 123.6 127.7 128.0 130.5 139.7 137.2 144.6 Food manufactures....................... 8 64 130.1 136.7 149 6 143 5 134.8 128.5 123,5 122.6 124.0 122.9 125.3 132.2 131.9 141 .2 Beverages........................................ 1.61 144.7 158 4 146 7 148,2 1 39 1 135 7 123 6 1 °9 1 147 4 155 8 158 1 1 80.1 165.3 Tobacco products.............................. .82 120.0 131 4 124^9 128.5 117:8 98:1 113J 1314 iii’l 1 1 । :9 124^ 131.4 109.2 Mining Coal, oil, and gas............................... 6.80 122.4 127.7 124 4 124.4 125.6 123.6 123,8 126.9 128.2 125.9 125.4 124.4 123.6 126.9 Coal.................................................... 1 16 118 1 123 3 122 2 122,4 120.0 114.0 111,1 118.2 127.0 125.3 121.6 118.3 105.2 128.1 Crude oil and natural gas................. 5 64 123 2 128 6 124 9 124.8 126.7 125.6 126.4 128,7 128.5 126.0 126.2 125.6 127.4 126.7 Oil and gas extraction................... 4.91 131.4 138.3 134 i 133,7 134.3 134.1 135.6 139.8 139.5 136.4 136.6 135.7 137.3 136.9 Crude oil..................................... 4 25 126 4 135.2 130^4 129.0 128.7 127.7 129.3 133.6 133.5 130.8 131.9 131.1 132.8 132.2 Gas and gas liquids................... .66 163.3 Oil and gas drilling....................... .73 67.9 62.6 62 1 65.0 75 7 67 9 64 5 54 2 53 7 56 0 55 7 57 9 60.4 Metal, stone, and earth minerals....... 1.43 128.8 135.3 131.4 126.3 117,6 111.2 103.2 108.4 111.6 134.1 143.7 148.4 147.7 148.8 Metal mining..................................... 61 119,9 114 2 1OR 6 100 4 86.7 86.1 88.0 92.5 96.7 130.1 144.5 147,8 143,5 145.6 Stone and earth minerals.................. .82 135.4 150.9 1488 145^5 140.4 129,9 114.5 120.2 122.6 137. 1 143.1 148.8 150.9 151.2 Utilities Electric................................................ 4.04 191 7 207.7 199.9 188,1 187.0 198.5 215.6 208.7 206,6 194.3 192.3 203.7 221.6 .......... Gas............,,.................................... E28 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 □ OCTOBER 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 ts groupi M ng a s te­ Ma g j r o o r u i p n in d g u s stry i u p n ( t c t a i p i e o m c l e n i n i z r f t t g y a ) ­ . s t C t t c r i r o o a u o n n c c n ­ t ­ ­ T m r p o t i e u e c l t m o a r n u a y l t ­ l l — - ­ 1 m p E l m e o n y ­ t - P ro a l y ls ­ T s re a o t l a e ta i s l l 3 s C um on e ­ r W m c s o o a h m l d o e i l ­ t e y ­ Con­ rials Total sumer E m q e u n ip t ­ Mig. M in i g n­ U iti t e il s ­ goods 1951. 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952. 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84,5 79 92.5 94.0 1953. 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954, 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93,6 92.9 1955. 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956. 99.9 98,1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100.2 92 94.7 96.2 1957. 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958. 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74,0 102 97.8 95.2 93.5 98 100.7 100.4 1959. 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 105 101.5 100.1 105. 1 105 101.5 100.6 1960. 108.7 109.9 111.0 107.6 107.6 108.9 101.6 1 15.6 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--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.......... 156.8 157.0 147.0 178.6 156.7 158.1 124.3 185.6 168 125.9 112.1 155.4 156 1 17.1 106.2 Oct........... 156.9 156.9 147.9 176.1 157.4 158.3 122.4 188.7 j 84.7 171 126.2 112.2 155.2 153 117.5 106.1 Nov.......... 159.5 160.0 150.1 181.1 159.5 161.1 123.6 191.5 168 127.1 113.8 158.9 154 117.8 106.2 Dec.......... 162.0 161 .9 152.8 181.5 162.2 164.0 122.3 192.6 166 127.7 114.3 161.2 155 118.2 106.8 1968--Jan........... 161.2 160.8 151.3 181 .4 161.7 162.7 121.6 195.9 166 127.7 114.4 161.2 158 118.6 107.2 Feb........... 162.0 162.0 152.9 181.6 161.8 163.6 123.9 197.5 ”84.9 152 128.7 114.3 162.8 160 119.0 108.0 Mar.......... 163.0 163.5 155.0 181.8 162.8 164.6 126.2 196.8 169 128.8 114.2 163.8 164 119,5 108.2 Apr.......... 162.5 161.7 153.5 179.4 163.1 163.7 127, 1 195.8 164 129.0 1 14.6 161 .4 162 119.9 108.3 May......... 164.2 163.0 154.6 181.1 165.2 165.8 126.9 196.1 ”84.8 172 129.1 114.7 166.1 164 120.3 108.5 June......... 165.4 164.9 156.4 183.0 166.2 167.1 128.9 197.7 129.5 115,3 167,7 165 120.9 108.7 July......... 165.6 164,5 156.2 182.3 166.7 166,7 130.7 199.0 129.8 rl 15.2 167,2 170 121 .5 109.1 Aug.......... 163.9 164.6 156.5 181 .8 162.9 165.0 129.4 199.8 ”83.3 192 130.1 •■115.1 N68.0 171 121 .9 108.7 Sept.”.... 163.4 164.6 156.7 181,8 162.0 164.7 126.4 200.2 ............ 130.3 114.7 169.4 169 ............ 109.1 i Employees only; excludes personnel in the armed rorccs. 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. 5 Figure is for 3rd quarter 1967. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- Note.—Data are seasonally adjusted unless otherwise noted. Hill Economics Department, and Department of Commerce. Construction contracts: F. W. Dodge Co. monthly index of dollar CONSTRUCTION CONTRACTS (In millions of dollars) 1967 1968 Type of ownership and type of construction 1966 1967 Aug. Sept. Oct. Nov. Dec. Jan, Feb. Mar. Apr. May June July Aug. Total construction 1 50,150 52,895r5,262 4,695 5,053 4,258 3,996 3,714 3,704 5,417 4,878 6,170 5,589 5,956 6,318 By type of ownership: Public.................. 18,152 19,039 1,824 1,677 1 ,526 1,435 1,507 I ,300 1 ,041 1 ,698 1 ,554 2,036 1,860 2,256 1 ,924 Private i................... 31,998 33,856r3,438 3,018 3,527 2,823 2,490 2,414 2,664 3,719 3,324 4,135 3,730 3,700 4,394 By type of construction : Residential building 1... 17 827 19,536r2 070 1 741 I 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 1 847 1 *786 1 *874 1 585 1 550 1 347 1 251 1 '835 1,522 2’227 2330 2'414 Nonbuilding.............. 12330 13320 1 ,345 1J69 1392 *956 1 ,042 905 958 1 ,362 1 ,044 1 ,400 1316 1355 .......... 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of total contracts as reported by the F. W. Dodge beginning Jan. 1968 are not strictly comparable with those for earlier Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made to proximately 3 per cent for total and private construction, in each case accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ CONSTRUCTION A-61 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total N f r a e o r s m n i­ ­ Buildings Total M ta i r l y i­ H w ig ay h­ C v o a n & ti s o e n r ­ Other 2 dential Total Indus­ Com­ b O u t i h l e d r ­ Other de m ve e l n o t p­ trial mercial ings t 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 I960............................. 53,941 38,078 21,706 16,372 2,851 4,180 3,118 6,223 15,863 1,366 5,437 1,175 7,885 1961............................. 55,447 38,299 21,680 16', 619 2,780 4’674 3,280 5,885 17,148 1,371 5’854 1 384 8,539 19624........................... 591667 41,798 24 >92 17,506 2'842 5’144 3,631 5>89 17,869 1,266 6>65 1,524 8,714 1963 5 ........................... 63,423 44,057 26,187 17,870 2’906 4,995 3'745 6,224 19,366 1,189 7,084 1 >90 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 >66 852 7,550 2’019 11>45 1966.............................. 75J20 51 J 20 23,971 27,149 6,679 6 >79 5'037 8,554 24,000 769 8 >55 2 J95 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—Aug................... 76,741 51,641 25,015 26,626 6,061 6,576 5,209 8,780 25,100 740 8,155 2,207 13,998 Sept................... 78,253 52,841 25,770 27,071 6'395 6,732 5 >77 8,867 25'412 728 8’452 2,145 14’087 Oct.................... 78^883 53,520 26’427 27,093 6 J73 6’996 5 >64 8'860 25'363 782 8,353 2'158 14 >70 Nov.................. 79,609 53'946 27,222 26,724 5,681 7'018 5,144 8,881 25,663 776 8,198 2’194 14,495 Dec................... 81,207 53,965 27'635 26,330 5,822 6'688 4,885 8,935 27 >42 865 9,172 2,'226 14’979 1968—Jan.r.................. 82,873 55,316 26,928 28,328 6,330 7,721 5,274 9,003 27,557 Feb/................ 83,884 55^80 26,754 28,626 5'740 8>28 5,417 9,141 28 >04 Marr................. 83,572 56’055 27'698 28,357 5 >28 8,'258 5,412 9,159 27>17 Apr.r................ 84,579 56’683 28 >00 28,083 5,484 8,512 5 J00 8,987 27,896 Mayr......... 84,651 56,204 28,572 27,632 5 ,’275 8'111 5’121 9 J25 28,447 82>78 54,454 27,660 26,794 4 >52 8; 122 4'678 9 J42 28>24 July................... 82,698 54’658 27,440 27,218 4'752 8,272 4,623 9,571 28'040 Aug.7’................ 83,940 55,302 27,928 27,374 5 >64 8 J55 4 >84 9,271 28 >38 1 Includes religious, educational, hospital, institutional, and other build­ 5 Beginning 1963, reflects inclusion of new series under “Public” (for ings. . . State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning with 1959, includes data for Alaska and Hawaii. 4 Beginning July 1962, reflects inclusion of new series affecting most Note.—Monthly data arc at seasonally adjusted annual rates. Figures private nonresidential groups. for period shown are Census Bureau estimates. NEW HOUSING STARTS (In thousands of units) Ann S u . a A l . rate, By area By type of ownership Government- (private only) Private underwritten Period Total Non­ Total N fa o rm n­ p M o e li t t r a o n ­ p m o e li t t r a o n ­ Total fam 1- i ly fam 2- i ly M fam ul i t l i y ­ Public Total FHA VA 1959............................. 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 1960............................. 1,296 889 407 1,252 995 44 213 44 336 261 75 1961.............................. 1 i 365 948 417 1 ,313 974 44 295 52 328 244 83 1962.............................. 1,492 1 ,054 439 1,463 991 49 422 30 339 261 78 1963 .............................. 1 ,642 1,152 490 1,610 1 ,021 53 536 32 292 221 71 1964.............................. 1,562 1 ,093 470 1 ,529 972 54 505 32 264 205 59 1965.............................. 1 ,510 1 ’035 475 1 ,473 964 51 458 37 246 197 49 1966.............................. 1 >96 '808 388 1 J 65 779 35 351 31 195 158 37 1967.............................. 1 ,322 920 402 1,292 844 41 406 30 232 180 53 1967—Aug................... 1,407 1,381 130 90 40 127 84 4 40 3 23 17 6 Sept................... 1,445 1'415 126 88 37 122 78 4 40 4 20 16 5 Oct,................... 1 ,496 1 ’478 137 99 38 135 82 5 49 2 25 19 5 Nov................... 1,590 1 >67 120 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.................... 1,537 1 ,'499 87 62 26 85 55 3 26 3 21 17 4 I ,511 1 ,479 129 92 37 127 79 4 43 2 24 20 5 Apr.................... 1 >91 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 ,365 1 J48 143 104 39 138 81 5 51 5 25 20 5 July................... 7'1 ,532 J’l >08 7'143 101 42 3'140 87 4 49 7’3 24 19 5 Aug................... ”1,508 7’1 >86 7’140 101 39 7’136 82 4 50 7’4 26 21 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. 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A-62 EMPLOYMENT □ OCTOBER 1968 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Unemploy­ Period i T p n o s o N t p t i a u t .S u l l a t . n A i t o o i . o n n n a - l l N ab N o o t . r S i n . f A o t . r h c e e T l f S a o o b . r A t c o a e r . l Total E In m n p o l n o a y g e r d i- 1 U pl n oy e e m d ­ (pe m r S a r . e c t A e n e . 2 t n t) Total cultural agric I u n l ture industries 1962........................... 122,981 49,539 73,442 70,614 66,702 61,759 4,944 3,911 5.5 1963........................... 125'154 50,583 74^571 71,833 67*762 63’076 4,687 4,070 5.7 1964........................... 127,224 51,394 75,830 73’091 69’305 64,782 4,523 3,786 5.2 1965........................... 129,236 52^058 77,178 74'455 71 ,088 66’726 4,361 3,366 4.5 1966.......................... 131,180 52,288 78’893 75’770 72*895 68,915 3,979 2,875 3.8 1967.......................... 133',319 52^527 80,793 77,347 74,371 70’527 3,844 2’975 3.8 19673-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 2^96 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 71656 3,980 2,707 3.5 May............... 135^249 53^479 82,149 78,613 75,829 71,936 3,893 2,784 3.5 June................ 135’440 50,986 82^585 79’018 76^048 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 72,196 3,733 2,761 3.5 Sept................ 136,'036 53*900 82,422 78,'831 75,957 72,355 3,602 2,874 3.6 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning Jan. 1967 data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics, of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n 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 3 303 11 ,778 2,877 8,325 9^25 1964......................................................... 58’332 17,274 634 3'050 3'951 12,160 2,957 8,709 9,596 1965......................................................... 60,832 18^062 632 3’186 4,036 12:716 3,023 9,087 10,091 1966......................................................... 64,034 19,214 627 3,275 4’151 13,245 3,100 9,551 10 871 1967......................................................... 66’,030 19334 616 3'203 4,271 I3;6I3 3’217 10,060 11,616 SEASONALLY ADJUSTED 1967—Sept.............................................. 66,123 19,285 606 3,182 4,278 13,684 3,251 10,139 11,698 Oct................................................ 66,286 19,302 603 3,184 4’267 13,729 3,261 10,171 11 ;769 Nov.............................................. 66,778 19,518 603 3,214 4,297 13,791 3,273 10,270 11 ,812 Dec,............................................ 67,060 19'593 603 3,275 4'302 13,793 3,289 10,316 11 ,889 1968—Jan................................................ 67,058 19,612 604 3,107 4,317 13,818 3,291 10,331 11,978 Feb................................................ 67,600 19,612 608 3'388 4,342 13,920 3,304 10,405 12,021 Mar.............................................. 67,656 19 307 609 3,330 4,332 13,999 3,311 10,415 12,053 Apr............................................... 67,755 19357 632 3,313 4,331 14,009 3,323 10,402 12,088 May.............................................. 67,792 19393 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............................................... 68,170 19'776 638 3,189 4,346 14J 17 3,350 10,'498 12,256 Aug.7’........................................... 68'335 19,760 638 3', 190 4,365 14,179 3,377 10,550 12,276 Sept J’........................................... 68,458 19,752 633 3,233 4,377 14,199 3,389 10,587 12,288 NOT SEASONALLY ADJUSTED 1967—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 3,134 4,311 14,618 3,269 10,223 12,137 1968—Jan............................................... 66,017 19,398 590 2,771 4,252 13,602 3,252 10,124 12,028 Feb............................................... 66,393 19,425 591 2,893 4,264 13,585 3,271 10,228 12,136 Mar............................................... 66,713 19,447 594 2,967 4,276 13,658 3,288 10,290 12,193 Apr. ............................................ 67*422 19,507 626 3,157 4,296 13,910 3,310 10,402 12,214 May.............................................. 67'724 19369 631 3,255 4,268 13,959 3,327 10,488 12,227 June............................................ 68,724 19,897 647 3,387 4,375 14,139 3,365 10,634 12,280 July.............................................. 68,327 19,729 652 3^498 4,394 14,112 3 307 10,687 11,848 AugJ 7........................................... 68*526 19,894 653 3,547 4,417 14,139 3,431 10,677 1 1 ,768 Sept J7........................................... 68,998 20,019 640 3,495 4,430 14,185 3,399 10,629 12,201 Note.—Bureau of Labor Statistics; data include all full- and part- domestic servants, unpaid family workers, and members of the armed time employees who worked during, or received pay for, the pay period forces are excluded. that includes the 12th of the month. Proprietors, self-employed persons, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 Sept. July Aug.!' Sept." Sept. July Aug.” Sept?' Total................................................................................. 14 116 14 512 14,492 14 449 14 369 14 415 14 576 14 710 Durable goods.............................................................. 8,179 8 458 8 417 8 390 8 254 8 397 8 323 8 470 Ordnance and accessories...................................... 182 *200 201 *200 ’181 *197 * 199 ' 201 Lumber and wood products................................. 514 517 519 51 7 529 538 543 532 Furniture and fixtures............................................ 370 389 393 393 375 385 397 398 Stone, clay, and glass products............................. 491 516 518 51 5 507 533 537 532 Primary metal industries....................................... 1 020 1 044 1 029 1 021 1 01 9 1 056 1 035 1 020 Fabricated metal products................................... 1 *029 1 *068 1 067 1 066 1 *038 1 053 I ’066 1 076 Machinery............................................................... 1 *361 1 *322 1,311 1 324 1 *354 1 ’319 1 *320 1 317 Electrical equipment and supplies......................... 1 289 1 308 1 314 1 ,31 5 1 .298 1 *284 1 308 1 324 Transportation equipment..................................... 1 ,311 1 378 1 ,422 1,418 1 ,319 1 >26 1 >82 1 >27 Instruments and related products......................... 277 272 278 27 8 278 270 279 280 Miscellaneous manufacturing industries............... 335 344 345 343 354 336 357 363 Nondurable goods........................................................... 5,937 6,054 6,075 6,059 6,115 6 018 6,253 6 240 Food and kindred products................................... 1.183 1 ,185 1 ’ 182 1 ’ 174 1 312 1 216 1 305 1 ’302 Tobacco manufactures........................................... 71 74 ’ 77 ‘ 74 85 ’ 64 83 89 Textile-mill products............................................. 848 876 877 873 854 867 884 880 Apparel and related products................................ 1 ,231 I ,249 1,246 1 ,254 1 ,247 1 ,207 1 ,267 1 ,270 Paper and allied products,.................................... 525 '542 '546 542 '531 ’543 ■552 '548 Printing, publishing, and allied industries............ 661 665 667 665 662 66.3 666 666 Chemicals and allied products............................... 593 610 615 61 5 593 613 621 616 Petroleum refining and related industries.............. 116 119 119 11 8 118 122 122 120 Rubber and misc. plastic products......................... 408 433 439 438 41 1 424 439 442 Leather and leather products................................. 301 301 307 306 302 299 314 307 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 Sept. July Aug." Sept." Sept. July Aug.” Sept.1’ Sept. July Aug." Sept.” Total.....................................-............................ 40.9 40.9 40.6 40.9 1 16.85 122.10 1 21.39 124.23 2.85 3.00 2.99 3.03 Durable goods..................................................... 41 .4 41.5 41.0 41.4 125.75 131.02 129 97 1 33.22 3.03 3.18 3.17 3.21 Ordnance and accessories.......................... 42 3 41 .3 41.8 42.0 1 35 36 1 31.61 1 34.69 1 36.92 3.20 3.21 3.23 3.26 Lumber and wood products...................... 40.3 40.7 40.6 40.7 98.42 105.01 106.86 107.16 2 43 2.58 2.60 2.62 Furniture and fixtures,............................... 40.5 40.7 40.6 40,7 97.41 99. 14 102.18 1 03.25 2.37 2.46 2,48 2.50 Slone, clay, and glass products................. 41 8 41 ,9 41.8 41.9 120.69 126.72 1 27 75 129.02 2.86 3.01 3.02 3.05 Primary metal industries........................... 41.1 41 .9 40.1 40.3 138.92 148.75 I 42 00 145.48 3.38 3.55 3.55 3.61 Fabricated metal products......................... 41 .6 41.7 41 .7 41 .9 126.42 1 30.41 132.09 135.36 3 01 3.15 3,16 3.20 Machinery.................................................. 42.5 42.0 41.9 42.1 136.10 I 40.11 1 39.44 142.80 3,21 3.36 3.36 3.40 Electrical equipment and supplies............. 40.4 40.3 40.5 40,8 1 12.31 1 16.51 I 17.97 120.36 2.78 2.92 2.92 2.95 Transportation equipment......................... 42.3 42.6 41.7 42.6 147.48 152.52 1 49.97 157.93 3.47 3.64 3.64 3.69 Instruments and related products............. 41 .2 40.5 40.4 40.4 119.23 119.39 120.90 122.21 2.88 2.97 3.00 3.01 Miscellaneous manufacturing industries... 39.5 39.2 39.1 39.3 93.06 96.36 97.86 98.89 2.35 2.49 2.49 2.51 Nondurable goods.............................................. 40.0 39.9 39.9 40.1 104.92 110.00 1 10.55 112.03 2.61 2.75 2.75 2,78 Food and kindred products...................... 41.0 40.8 41.1 40.8 110.09 1 15.92 1 14.96 116.20 2.64 2.80 2.77 2.80 Tobacco manufactures............................... 38.3 38,1 38.9 38.3 86.33 99,53 95.55 93.46 2.18 2.64 2.45 2.36 Textile-mill products.................................. 41.4 41 .5 41.1 41 .7 86.94 89.19 92.51 94.24 2.10 2.17 2.24 2.26 Apparel and related products................... 36.2 36.1 36.0 36.3 74.73 79.06 81.40 81 .45 2.07 2,19 2.23 2,25 Paper and allied products.......................... 42.7 43.1 42.9 43.3 125.85 132.32 1 32.62 1 35.47 2.92 3.07 3.07 3.10 Printing, publishing, and allied industries. 38.2 38.3 38.4 38.5 128.21 132.94 135.49 137.74 3.33 3.48 3,51 3.55 Chemicals and allied products................... 41 .5 41 .7 41.8 42.1 130.31 136,45 137.19 139.35 3.14 3.28 3,29 3.31 Petroleum refining and related industries , 42.5 42.8 42. 1 42.6 155.16 163.18 157.78 162.86 3.60 3.76 3.73 3,77 Rubber and misc. plastic products............ 41.8 41.8 41.4 41.5 1 19.71 1 21.42 122.30 124.74 2.83 2.94 2.94 2.97 Leather and leather products..................... 38.9 38.1 37.8 38.6 80.26 85.31 85.41 86.11 2.09 2.21 2.23 2.26 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 □ OCTOBER 1968 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent o H w s o h n m ip e e r - ­ F c a o o u n i a e d l l l t e r G a i l c n e a i d c t s y ­ o n F p i a n i n u e s g r d h r s a ­ ­ ­ A up p a k p n e a d e r e p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P 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 v d 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 1960. 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103,8 105.4 108.1 104.1 104.9 103.8 1961 . 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103.0 105,0 107.3 111.3 104.6 107.2 104,6 1962. 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107,2 109.4 114,2 106,5 109.6 105.3 1963. 106.7 105.1 106.0 106,8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107,9 111.5 107.1 1964. 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965. 109.9 108.8 108.5 108,9 111.4 105.6 107.8 103.1 106.8 111,1 115.6 122.3 109,9 115.2 111,4 1966. 113.1 114.2 111.1 110.4 115.7 108.3 108.1 105.0 109.6 112.7 119.0 127,7 112.2 117.1 114.9 1967........................ 116.3 115.2 114.3 112.4 120.2 111.6 108.5 108.2 114.0 115.9 123.8 136,7 115.5 120.1 118,2 1967--Aug............... 116.9 116.6 114.7 112.6 120.8 111.7 108.5 108.3 113.8 116,4 124.2 137,5 116,1 120.0 118,8 Sept............... 117.1 115.9 115.0 112,8 121.1 112.3 108.9 108.8 115,1 116,8 124.9 138,5 116.4 120.5 119.7 Oct................ 117.5 115.7 115.3 113.0 121.5 112.5 108.9 109.1 116,0 117,7 125.5 139.0 116.5 121,4 120,3 Nov.............. 117.8 115,6 115.5 113,2 121.9 112.7 109.0 109.3 116.6 118.3 126.2 139.7 116.9 122,0 121.0 Dec,, ........... 118,2 116,2 116.0 113.5 122.6 113,1 108.7 109.7 116.8 117.9 126.6 140.4 117.2 122.2 121.4 1968--Jan................ 118.6 117.0 116.4 113.7 122.9 113.7 108.9 110.6 115.9 118.7 127.1 141.2 117.6 122.7 121.9 Feb................ 119.0 117,4 116.9 113.9 123.5 113.8 109.3 111.2 116.6 118.6 127.5 141.9 117,6 123,0 122.1 Mar............... 119.5 117,9 117.2 114.2 123.8 113,9 109.3 111.8 1 17.6 119.0 128.3 142.9 118.4 124.2 122.4 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............... 121.5 120.0 119.5 115.1 127,8 115.7 109.5 113,1 119.7 119.8 130.2 145.1 120.4 125.9 123.9 Aug............... 121 ,9 120.5 120.1 115.4 128.8 115.7 109.7 113,3 120,3 120,0 130.5 145.5 120.9 126.3 124.2 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 com­ prod­ foods chin­ Non- Trans­ m t o ie d s i­ ucts f a e n ed d s Total t T i e l e t e c x s . , ­ H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s . t , ­ e a q e n r u y d i p ­ F t e u u t r c r e n . , i ­ t m m al i l e n i ­ c ­ e p t q o io u r n i t p a ­ ­ 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 9 100.6 1959............................. 100 6 97.2 99.9 101.3 100.4 109 1 98.7 1000 99.7 104 1 101 0 101.2 102.1 100 4 101 '2 100.8 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 11 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 u 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 1013 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 11 n 106,8 1967............................. 106.1 99.7 111,7 106, 3 102. i 115.8 103.6 98 4 97 0 105 4 104.0 109.5 111.8 101,0 104 3 J* a 109.2 1967—Aug................... 106.1 99.2 112.1 106,3 101.7 114.4 104.7 98 0 97.8 106 I 104.0 109.2 111.8 101 0 104 5 u 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 110.6 106.8 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 n 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 r* a ■ 111.0 Feb................... 108.0 101.3 113.3 108. 3 104.6 116.7 102.5 98 1 99 5 ill 6 105.7 112.8 114.1 103.3 106.9 n.a, 111.3 108,2 102.1 112.9 108.6 104.6 117 9 102 0 98.6 99 7 113.9 105.2 113.8 114 3 103 6 107 3 11 a 111.5 108.3 102.1 112.8 108.8 104.7 118.3 102.4 98.8 99'7 115 8 105.2 113 3 114 8 103 8 107 4 1118 108 5 103 6 113.6 108.6 104.8 118 8 102 4 98 7 99 8 117 0 105 5 1117 115.0 104 0 107 8 111.8 108.7 102.5 114.6 108.8 105.2 118.7 103.7 98 5 99.9 117.2 104 7 111.7 115 0 103 9 108*3 n :i 1118 July................... 109.1 103.9 115.9 rJO8.8 105.8 119.5 103,3 98 2 100.7 119,2 104.9 111.4 115.2 104,1 108*4 n a. 111.5 Aug................... 108.7 101.4 114.9 108.9 106.0 119,5 102.6 98.1 100,6 120.5 104.9 111.3 115,4 104.2 108'7 n.a. 111.6 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ PRICES A-65 WHOLESALE PRICES: DETAIL (1957-59= 100) 1967 1968 1967 1968 Group Group Aug. June July Aug. Aug. June July Aug. Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 96.6 106.4 108.2 97,4 Pulp, paper, and products, excluding Grains................................................... 86,1 82,0 80,0 75.1 building paper and board........... 104,5 105.2 105.4 105,3 Livestock............................................... 106.3 106.2 109.5 106.2 Woodpulp............................................ 98.0 98.0 98.0 98.0 Live poultry........................................... 77.3 89.6 93.8 87.8 Wastepaper.......................................... 74.6 103.1 110.5 112.8 Plant and animal fibers........................ 71.4 76.0 76.0 76.8 Paper.................................................... 110.9 112.7 113.0 113.0 Fluid milk............................................. 120.9 129,4 130.7 130.7 Paperboard.......................................... 97.3 90.6 90.6 90.6 Eggs....................................................... 82.1 88.3 91.4 98.4 Converted paper and paperboard,. . . 104.6 105.3 105.3 105.0 Hay and seeds....................................... 111.6 112.9 113.2 113,0 Building paper and board.................. 91.3 92.3 92.3 92.9 Other farm products............................ 99.3 101.6 101.8 103.1 Processed foods and feeds: Metals and metal products: Cereal and bakery products................ 116.8 117.0 118.4 119.3 Iron and steel....................................... 103.3 104.8 104,8 104.8 Meat, poultry and fish......................... 107.4 109.8 113.6 109.7 Stcelmili products................................ 105.6 108.0 108,0 108.0 Dairy products..................................... 122.1 128.7 128,8 128.8 Nonferrous metals............................... 118,9 123.6 122.3 121.7 Processed fruits and vegetables........... 107.1 114.8 114.7 113.6 Metal containers................................. 111.7 116.9 116.8 116.8 Sugar and confectionery. .................... 113.8 116.0 116.4 116.2 Hardware............................................. 115,2 116.8 116.9 116,9 Beverages and beverage materials.... 106.6 109,4 109.5 109.8 Plumbing equipment........................... 110.1 114.1 1 14.1 114,2 Animal fats and oils............................ 83.0 63.5 64.2 64.2 Heating equipment............................. 92.5 95.3 95.3 95.4 Crude vegetable oils............................. 89.8 87.5 84.5 87,0 Fabricated structural metal products. 105.5 107.5 107.6 107.9 Refined vegetable oils.......................... 91.9 94.4 93.5 102.1 Miscellaneous metal products........... 114.2 115.7 115.7 I 15.8 Vegetable oil end products.................. 101.0 100.2 100.2 100.6 Miscellaneous processed foods........... 112.1 114.5 114.7 114.8 Manufactured animal feeds................. 119.6 119.4 119.4 118,6 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 122.0 126.5 126.8 127.0 Construction machinery and equip.,. 122.4 129.4 129.2 129.0 Cotton products................................... 98.8 104.7 105.2 105.3 Metalworking machinery and equip.. 124.4 128,2 129.1 129.3 Wool products...................................... 102.9 103.8 103.9 104.1 General purpose machinery and Man-made fiber textile products......... 85.9 89.9 90.4 90.7 equipment..................................... 113,6 117.2 117.3 117.6 Silk yarns.............................................. 172.6 184.0 182.5 175.1 Special industry machinery and Apparel.................................................. 107.3 110.1 110.7 HO.9 equipment (Jan. 1961= 100)....... 116,7 121.9 122.0 122.5 Textile housefurnishings....................... 105.3 110.6 110.5 110,6 Electrical machinery and equip.......... 101.6 102.7 102.7 102.9 Miscellaneous textile products............ 116.0 112.4 113.8 117.0 Miscellaneous machinery................... 109.4 114.3 114.3 114.6 Hides, skins, leather, and products: Furniture and household durables: Hides and skins.................................... 86.8 95.1 101.5 102.8 Leather.................................................. 109.2 112.8 113.8 113.6 Household furniture.......... 112.8 117.0 117.2 117.5 Footwear............................................... 121.2 127.1 127.3 127.2 Commercial furniture............... 111.9 115.6 115.9 116.0 Other leather products......................... 112.5 112,6 112.5 112.6 Floor coverings......................... 92.6 95.0 95.0 95.3 Household appliances................ 90.1 92,0 92.4 92.5 Fuels and related products, and power: Home electronic equipment.... ........ 81,8 81.3 80.7 80.7 Other household durable goods 117.9 124,5 124.5 125.0 Coal....................................................... 103.0 105.3 105.4 105,5 C G o as k e fu .. e .. l . s .. . ( . J .. a .. n .. . . .. 1 .. 9 .. 5 .. 8 .. = .. . 1 .. 0 ... 0 .. ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 1 2 2 . , 0 0 1 1 2 1 3 7 . . 3 0 1 1 2 1 0 7. . 0 8 1 1 2 1 0 7. , 0 6 HonmetaUic mineral products: Electric power Oan. 1958= 100),..... 100.5 101.3 101.2 101.8 Crude petroleum. ................................. 99.0 99.3 99.4 99.7 Flat glass.................................... 106.9 110.5 110.5 110.5 Petroleum products, refined................ 104.6 103,1 102.8 101 .0 Concrete ingredients.................. 106.0 109.3 109.4 109.6 Concrete products............................... 105.8 108,2 108.1 108.5 Chemicals and allied products: Structural clay products excluding refractories................................... 110,4 112.3 1 12.5 113.7 Industrial chemicals............................. 97.1 98.6 98.2 98.4 Refractories.................. 104.9 112.5 112.5 112.6 Prepared paint...................................... 108.8 114.4 114.4 114.4 Asphalt roofing.................................... 91.8 96.7 97.6 97.6 Paint materials..................................... 90.7 92.4 92.3 92.1 Gypsum products................................ 100.7 105.1 105.0 106.6 Drugs and pharmaceuticals................. 93.6 93.5 93.4 93.2 Glass containers......................... 101.1 109.8 109.8 109.8 Fats and oils, inedible......................... 77.2 72.8 69.1 71.2 Other non metallic minerals............ 101.8 105.1 105,2 105.8 Agricultural chemicals and products.. 101.8 101.3 101.3 99.4 Plastic resins and materials................. 89.5 81.0 81.1 80.9 Other chemicals and products............ 108.7 110.5 110.4 110.5 Transportation equipment: Rubber and products: Motor vehicles and equipment. 101 .3 104.5 '104.2 104,4 Railroad equipment (Jan. 1961 =W0). 102.9 105.4 106.9 107.1 Crude rubber........................................ 84.8 85.2 85.0 85.3 Tires and tubes.................................... 98.7 98.7 100.9 99.5 Miscellaneous rubber products........... 102.3 106.9 106.9 107.8 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition.................................. 105.8 108.2 108.7 108.9 Lumber.................................................. 109.0 125.0 127.7 129.8 Tobacco products.......................... 114.8 114.9 114.9 114.9 Millwork............................................... 112.6 118.3 118.3 118.8 Notions................................................. 100.8 108.1 101.0 101.2 Plywood................................................ 90.9 98.2 101.3 102.3 Photographic equipment and supplies 111.3 113.8 112.8 112.8 Other wood products (Dec. 1966= 100) 101.6 106,3 106.6 106.7 Other miscellaneous products. ...... 108.5 110.6 110,7 1 10.9 Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classiincorporate (1) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-66 NATIONAL PRODUCT AND INCOME □ OCTOBER 1968 GROSS NATIONAL PRODUCT (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 11 III IV 1 ID Gross national product..................................... 103.1 55.6 124.5 284,8 590.5 632.4 684.9 747.6 789.7 780.2 795.3 811.0 831.2 852.9 Final purchases............................. 101.4 57.2 120.1 278.0 584.6 626.6 675.3 732.8 783.6 778.0 789.9 802.7 829.1 842 J Personal consumption expenditures................. 77.2 45.8 80.6 191.0 375,0 401.2 432.8 465.5 492.2 490.3 495.5 502.2 519.4 527.9 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 81.0 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 62.4 152,4 163.3 175.5 188.3 203.8 201.6 205.9 209.6 213.9 218.7 Gross private domestic investment.................. 16.2 1.4 17.9 54.1 87.1 94.0 108.1 120.8 114.3 107.6 114.7 121.8 119.7 127.3 Fixed investment........................................... 14.5 3.0 13.4 47.3 81.3 88.2 98.5 106.1 108.2 105.4 109.3 113.5 117.6 116.5 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 87.0 Structures.............................................. 5.0 .9 2.9 9.2 19,5 21.2 25.5 28.5 27.9 27.2 21.7 27.7 29.6 28.5 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 58.5 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 1 8.6 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 10.8 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 10.4 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 2.0 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 49.9 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 47.9 Government purchases of goods and services. . 8.5 8.0 24.8 37.9 122.5 128.7 137.0 156.2 178.4 177.3 179.6 183.5 190.5 195.7 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 72.1 72.9 74.6 76.8 79.0 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........................................................ 203.6 141.5 263.7 355.3 551.0 581.1 617.8 657.1 673.1 669.2 675.6 681.8 692.7 703.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, see the Survey of Current Business, July 1968, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 II III IV 1 II National income................................................ 86.8 40.3 104.2 241.1 481.9 518.1 564.3 620.8 652.9 645.1 656.9 670.9 688.1 705.4 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 5.9 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 3,5 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 89.2 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 91.8 Profits tax liability.................................... 1.4 .5 7,6 17.8 26.3 28.3 31.3 34.6 33.5 33.0 33.2 35.1 39.8 41.1 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 50.7 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 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 26.3 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -.5 -.5 -1.7 -1.7 -1.2 -.7 -.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

OCTOBER 1968 □ NATIONAL PRODUCT AND INCOME A-67 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME SAVING (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1963 1964 1965 1966 1967 II Ill 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 8110 831.2 852.9 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 74.8 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 - 3.6 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 56'4.3 620.8 652.9 645,1 656.9 670.9 688.1 705.4 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 89.2 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.................................................. Phu • 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 91.9 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 81.7 193.9 384.7 411.9 444.8 478.6 506.2 504.5 509.5 516.1 533.5 542. 3 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 375.0 401,2 432.8 465.5 492.2 490.3 495.5 502.2 519.4 527.9 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 .8 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 44.0 Disposable personal income in constant (1958) dollars........................................................ 150.6 112.2 190.3 249.6 381.3 407.9 435.0 459.2 478.0 476.3 479-5 483.7 491.8 497.1 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted quarterly totals at annual rates. Sec also Note to table opposite. PERSONAL INCOME (In billions of dollars) 1967 1968 Item 1966 1967 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Api. May J unc July Aug," Total personal income. . ...................... 586.8 628.8 634.2 637 0 638.0 644.9 652.6 654.9 663.0 670.0 672.6 678.2 683.7 689.2 694.3 Wage and salary disbursements.......... 394.6 423.4 426.6 428.8 429.6 435.4 444.2 443.0 449.7 452.2 453.2 457.5 462.2 465.4 468.8 Commodity-producing industries.., 159.4 166,6 167.7 167.8 167.6 171.0 173.0 173.1 176.6 177-0 176.7 179.3 179.9 180.6 181.4 Manufacturing only...................... 128.0 134.1 135.3 J 35.1 134.8 137.5 139.1 140.0 141.6 142.2 141.6 144.3 145.6 146.0 146.7 Distributive industries..................... 93.9 100.5 101.2 102. 1 102.4 103.1 103.8 104.5 105.9 106.5 106 9 107.4 109.7 109.9 110.9 Service industries............................. 63.6 70.0 70.8 71.3 71.6 72.3 73.2 73.6 74.6 75.2 75.5 76. 1 77.0 77.5 78.2 Government..................................... 77.7 86.3 86.8 87.6 88.1 89.0 94.2 91.9 92.6 93.4 94.2 94.7 95.5 97.4 98.2 Other labor income............................ 20.8 23.3 23.7 23.9 24.0 24.2 24.4 24.7 25.0 25.2 25.5 25.7 26.0 26.3 26.5 Proprietors' income............................. 60.7 60.7 61.2 61.5 60.7 61.1 61.3 61.5 61.8 62.3 62.4 62.6 62.7 62.9 63.2 Business'and professional............... 44.8 46.3 46.6 46.7 46.5 46.8 47.0 47.1 47.2 47.5 47.6 47.8 47.9 48.0 48. 1 Farm................................................. 15.9 14.4 14.6 14.8 14.2 14.3 14.3 14.4 14.6 14.8 14.8 14.8 14.8 14.9 15. 1 Rental income...................................... 19.8 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 21.0 Dividends............................................. 21.7 22.9 23.5 23.4 23.2 23.1 21.1 23.2 23.6 23.9 24.3 24.7 24.3 25.0 25.2 Personal interest income..................... 43.1 46.8 47.2 47.6 48.0 48.5 49.0 49.4 49.8 50.2 50.8 51.3 51 .9 52.5 53.2 Transfer payments.......................... 43.9 51.7 52,2 51.9 52.6 53.0 53.2 54.5 54.9 57.8 58. J 58.2 58,5 59.1 59.5 Less: Personal contributions for social insurance.......................................... 17.8 20.4 20.6 20.5 20.7 20.9 21.2 22.1 22.4 22.4 22.6 22.8 22.9 23.1 23.2 Nonagricultural income........................ 566.1 609.3 614.4 617.1 618.8 625.4 633.0 635.1 643.1 649.9 652.5 658.1 663.4 668.9 673.7 Agriculture income............................... 20.7 19.5 19.8 19.9 19.2 19.S 19.6 19.8 20.0 20.1 20.1 20.2 20.2 20.3 20.6 Note.—Dept, of Commerce estimates. Quarterly data arc seasonally adjusted totals at annual rates, Sec also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-68 FLOW OF FUNDS □ OCTOBER 1968 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1966 1967 1968 Transaction category, or sector 1963 1964 1965 1966 1967 I JI 111 IV I II III IV I I. Saving and investment 1 Gross national saving........................ 144.5 160.3 181.6 196." 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 98.3 108.9 118.1 129.6 116.2 114.2 118.5 125.3 125.3 125.4 129.6 137. 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.C 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 .C .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.^ 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 9.1 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 72.3 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 II. 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 instil.............. 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 III. 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 .2 -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 1.1 -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 non fin..................... 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 annua! 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

OCTOBER 1968 □ FLOW OF FUNDS A-69 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1966 1967 1968 Transaction category, or sector 1963 1964 1965 1966 1967 I 11 Ill IV I II 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 1 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 -2.0 .4 2.6 2.1 1.1 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 11 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 Ill, U.S. Govt, securities 19 Total net issues.................................... 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 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 .2 -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 Nonguaranteed........................... .3 .3 .3 .4 .5 .9 .4 .1 .4 .8 1.4 -.3 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 -.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 20.1 36 37 Other direct................................. 1.0 2.8 -1.2 2.2 -1.6 1.1 .2 1.8 5.8 -9.6 -3.0 -1.8 8.1 -5.8 37 38 Nonguarantecd............................ .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 .8 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 11.2 10,0 41 42 Nonfinancial corporations............. 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 42 43 Commercial banks, ............. .6 .8 .2 .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 43 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.R 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 13.9 11.0 14.6 14.4 13,8 51 52 Finance n.e.c.................................... -.2 -.8 -1.7 -2.2 -1.1 -5.3 -2.2 -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 -.1 * -.5 — 4.4 -8.3 54 55 Portfolio purchases................. .8 I .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 3.1 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 -1.1 -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 11.0 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 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 □ OCTOBER 1968 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1967 1968 Item 1965 1966 1967 i n in IV I IP Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total1........................ 39,196 43,142 45,756 11,371 11,377 11,513 11,496 11,860 12,478 Merchandise............................................................ 26,244 29,176 30,468 7,661 7,703 7,626 7,478 7,924 8,302 Military sales........................................................... 830 829 1,240 335 336 245 323 306 362 Transportation........................................................ 2,413 2,608 2,701 670 670 680 681 709 703 Travel....................................................................... 1,380 1,590 1,646 421 384 417 424 442 421 Investment income receipts, private....................... 5,384 5,659 6,235 1 ,443 1,391 1 ,671 1,729 1,544 1,699 Investment income receipts, Govt.......................... 509 593 624 151 165 156 153 198 217 Other services.......................................................... 2,436 2,687 2,843 690 728 718 708 737 774 Imports of goods and services—Total........................ -32,295 -38,063 -40,989 -10,078 -10,108 -10,154 -10,648 -11,504 -11,986 Merchandise............................................................ -21,516 -25,541 -26,991 -6,686 -6,605 -6,541 -7,159 -7,837 -8,293 Military expenditures.............................................. -2,945 -3,735 -4,340 -1,072 -1,065 -1,098 -1,104 -1,110 -1,143 Transportation........................................................ -2,679 -2,923 -2,982 -767 -745 -720 -750 -805 -777 Travel....................................................................... -2,438 -2,657 -3,195 -704 -841 -925 -725 -773 -769 Investment income payments................................. -1,729 -2,074 -2,293 -560 -560 -575 -598 -660 -695 Other services.......................................................... -989 -1,132 -1,189 -289 -292 -295 -312 -319 -309 Balance on goods and services1.................................. 6,901 5,080 4,768 1,293 1,269 1,359 848 356 492 Remittances and pensions............................................ -1,027 -1,015 -1,276 -262 -392 -358 -263 -266 -280 1. Balance on goods, services, remittances and pensions....................................................... 5,874 4,065 3,492 1,031 877 1,001 585 90 212 2. U.S. Govt, grants and capital flow, net.................. -3,370 -3,444 -4,210 -1,176 -1,039 -988 -1,008 -1,164 -1,101 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims........ -4,242 -4,676 -5,191 -1,394 -1,305 -1,226 -1,266 -1,510 -1,413 Scheduled repayments on U.S. Govt, loans. , . 651 803 975 218 266 233 258 304 309 Nonscheduled repayments and selloffs............. 221 429 6 * 5 * 42 3 3. U.S. private capital flow, net................................. -3,794 -4,298 -5,504 -975 -1,104 -1,788 -1,638 -646 -1,230 Direct investments.............................................. -3,468 -3,623 -3,020 -653 -651 -902 -815 -374 -1,034 Foreign securities................................................ -759 -481 -1,266 -259 -199 -476 -332 -385 -81 Other long-term claims: Reported by banks...................................... -232 337 285 153 188 -72 16 199 53 Reported by others......................................... -88 -112 -289 -68 -170 42 -93 45 -26 Short-term claims: Reported by banks...................................... 325 -84 -744 -74 -386 -363 79 165 151 Reported by others........................................ 428 -334 -470 -74 114 -17 -493 -296 -293 4. Foreign capital flow, net, excluding change in liquid assets in U.S.............................. 270 2,532 3,185 866 1,202 766 352 1,365 2,172 Long-term investments....................................... -68 2,156 2,344 693 982 359 310 1 , 174 1,270 Short-term claims................................................ 149 296 388 94 80 174 40 -21 138 Nonliquid claims on U.S. Govt, associated with— Military contracts............................................ 306 346 64 95 147 -67 -ill -29 -3 U.S, Govt, grants and capital....................... -86 -205 -85 -38 -12 -23 -12 -5 1 Other specific transactions............................. -24 -12 5 22 5 -12 -10 -27 -6 Other nonconvertible, nonmarketablc, me­ dium-term U.S. Govt, securities 3.............. -7 -49 469 * * 335 135 273 772 5. Errors and unrecorded transactions....................... -315 -210 -532 -250 -458 207 -34 -305 -222 Balances A. Balance on liquidity basis Seasonally adjusted (— l + 2 + 3T4-|-5)............ -1,335 -1,357 -3,571 -505 -522 -802 -1,742 -660 -170 Less: Net seasonal adjustments........................ -267 -302 410 159 -411 -303 Before seasonal adjustment................................. -1,335 -1,357 -3,571 238 -220 -1,212 -1,901 -249 133 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted................ -1,335 -1,357 -3,571 -505 -522 -802 -1,742 -660 -170 Plus: Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad............................. 116 2,697 1 ,262 -979 355 1,119 767 409 2,376 Other private residents of foreign countries.. 306 212 413 80 12 96 225 3 95 International and regional organizations other than IMF................................ -291 -525 -218 -36 -78 -55 -49 71 -78 Less: Change in certain nonliquid liabilities to foreign central banks and govts............ 85 761 1,291 324 573 Iff 283 358 764 Balance B, seasonally adjusted.......................... -1,289 266 -3,405 -1,764 -806 247 -1 ,082 -535 1,459 Less: Net seasonal adjustments........................ -485 -101 272 314 -629 -102 Before seasonal adjustment................................. -1,289 266 -3,405 -1,279 -705 -25 -1,396 94 1,561 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A-71 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1967 1968 Item 1965 1966 1967 I II III IV I I^ Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis......................... 1,335 1,357 3,571 238 220 1,212 1,901 249 -133 Change in U.S. official reserve assets (In­ crease, — ).......................................... 1,222 568 52 1,027 -419 -375 -181 904 -137 Gold................................................................ 41,665 571 1,170 51 15 92 1,012 1,362 22 Convertible currencies.................................. -349 -540 -1 ,024 1,007 -424 -462 -1 ,145 -401 267 IMF gold tranche position ............................ 4-94 537 -94 -31 -10 -5 -48 -57 -426 Change In liquid liabilities to all foreign accounts 113 789 3,519 -789 639 1 ,587 2,082 -655 4 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities3.............1.2..2............-.9...4..5............. 455 72 46 125 212 100 Marketable U.S. Govt, bonds and notes3. -20 -245 48 5 52 -6 -3 -359 -3 Deposits, short-term U.S. Govt, securi­ ties, etc...................-.1...5..4............-.582 1 ,537 -174 441 162 1,108 -1,113 -2,181 IMF (gold deposits)...................................... 34 177 22 17 5 8 -11 Commercial banks abroad........................... 116 2,697 1,262 -753 161 1 ,265 589 635 2,182 Other private residents of foreign countries. 306 212 413 80 12 96 225 3 95 International and regional organizations other than IMF...................................... -291 -525 -218 -36 -78 -55 -49 71 -78 B. Official reserve transactions................................... 1,289 -266 3,405 1,279 705 25 1,396 -94 -1,561 Change in U.S, official reserve assets (in­ crease, —).............................................. 1 ,222 568 52 1,027 -419 -375 -181 904 -137 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.).................................................... -18 -1,595 2,062 -80 544 281 1,317 -1,364 -2,195 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations................... -38 793 839 304 587 -212 160 119 144 Of U.S. Govt.............................................. 123 -32 452 28 -7 331 100 247 627 1 Excludes transfers under military grants. 3 With original maturities over 1 year. 2 Excludes military grants. 3 Includes certificates sold abroad by Export-Import Bank. Note.—Dept, of Commerce data. Minus sign indicates net payments 4 Reflects $259 million payment of gold portion of increased U.S. (debits); absence of sign indicates net receipts (credits). 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 3 1,199 1,918 2,256 2,609 3 28 347 361 176 Feb..................... 31,623 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 32,455 3 1 ,861 2,080 2,200 2,612 3878 474 349 -158 Apr..................... 3 2,406 2,354 2,653 3 2,889 31,811 2,113 2,226 2,641 3595 241 427 248 May................... 3 2,299 2,416 2,547 2,720 31,797 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 2,839 3 386 346 350 -80 July.................... 2,300 2,455 2,585 2,803 41,742 2,178 2,209 2,664 4 558 277 376 139 Aug.................... 2,329 2,444 2,549 2,916 1,825 2,119 2,125 2,827 504 324 424 89 Sept................ 2,291 2,540 2,638 1,858 2,295 2,209 433 244 429 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 3 5,456 6,336 6,590 8,232 31,484 921 1,187 136 ....................... 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 Year3................ 26,700 29,379 31,007 421,366 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. Details may not add to totals because of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-72 U.S. GOLD TRANSACTIONS □ OCTOBER 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 I II Western Europe: Austria............................ -83 -I -143 -82 -55 -100 -25 Belgium.............................. -39 -141 -144 -63 -40 -83 -25 -33 France................................. -266 -173 -456 -518 -405 -884 -6oi 220 Germany, Fed. Rep. of. .. -34 — 23 — 225 Ireland................................ -1 -2 -2 -2 -1 * -1 -12 -32 Italy..................................... 100 200 -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 j 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 50 100 50 Latin American republics: Argentina....................... -50 — 90 85 — 30 -39 -1 — 5 Brazil.................................. -11 -2 57 72 54 25 —3 -1 * * ♦ * Colombia........................... -6 38 16 29 7 Venezuela........................... 65 —25 Other.................................. -35 -42 -17 -5 -11 -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 -56 Lebanon............................. -21 -32 -11 -n -1 -74 -21 Malaysia............................. -1 -10 -24 Saudi Arabia..................... -11 -48 -13 -25 Singapore........................... -30 -23 Other.................................. -28 -57 -32 -47 12 14 -14 -15 — 22 — 1 -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 (Table 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 arc 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

OCTOBER 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) Gold stock 1 Con­ Reserve Gold stock i Con­ Total vertible position Total vertible Reserve End of year reserve foreign in End of month reserve foreign position assets Total a Treasury currencies IMF 3 assets Total 2 Treasury c c u i r e r s e n * ­ IM in F J 1958 ........................ 22,540 20.582 20,534 1,958 1967—Sept.......1..4..,.649 13 077 13 006 1 200 372 1959........................ 21,504 19;507 19,456 1,997 Oct ....... 14 927 13’039 12 905 1 509 379 Nov.......1..5..,.438 12,965 12,908 2,092 381 1960........................ 19,359 17,804 17,767 1,555 Dec,, .......... 14,830 12,065 11,982 2,345 420 1961........................ 18’753 16,947 16^889 116 1,690 1968—Jan.......1..4..,.6..20 12,003 11 ,984 2,176 441 1962........................ 17,220 16,057 15,978 99 1,064 Feb............. 14;?90 11,900 11,882 2,235 655 1963 ........................ 16^843 15,596 157513 212 1,035 Mar........... 13,926 10*703 16’484 2 ,’746 477 Apr......... 13,840 10^47 10 484 2; 804 489 1964........................ 16,672 15,471 15.388 432 769 May......1..4...,.348 10,468 IO’,384 3',386 494 1965........................ 15,450 «13,806 *13,733 781 4 863 June........... 14,063 10’681 10 367 2 479 903 July............ 14,366 10,676 10,367 2,773 917 1966........................ 14,882 13,235 13,159 1,321 326 14,427 10,681 10,367 2817 929 1967........................ 14,830 12,065 11,982 2,345 420 Sept.......1..4..,.6.34 10,755 10,367 2^53 926 1 Includes (a) gold sold to the United States by the International Mon­ ■* Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S, quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund, 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 3 In accordance with IMF policies the United States has the right to draw foreign currencies equivalent to its reserve position in the IMF vir­ Note.-—See Table 18 for gold held under earmark at F.R. Banks for tually automatically if needed. Under appropriate conditions the United foreign and international accounts. Gold under earmark is not included States could draw additional amounts equal to the U.S. quota. See Table 5. in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. transactions with IMF Transactions by U.S. reserve other countries Period with IMF position P s t u a d io y b o n m s o ll c s a f e r r i i n . s n p ts ­ by s g N I a o M l e l e d t s F 1 D c f r o c u a i r r w o e e r s f i e i g n n 2 n g ­ s I i M d 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 h o an ta g l e Amount P q e U u r o . o c S f t e . a nt p i ( e n e r n i I o d M d o ) F f 3 dollars 1946—1957............................. 2,063 4 594 — 45 — 2 664 827 775 775 28 1,975 1958—1963............................. i;031 150 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—Sept.............................. -1 — 3 -4 4,788 93 372 Oct............................... 3 -10 -7 4,781 93 379 Nov.............................. 2 -4 -2 4^79 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 Mar.............................. 200 1 -23 178 4^83 91 477 Apr.............................. 2 -14 — 12 4,671 91 489 May....................... 2 —7 -5 4,666 90 494 June............................. — 1 -408 -409 4,257 83 903 July.............................. 4 -18 -14 4^43 82 917 Aug.............................. — 1 -11 — 12 4;231 82 929 Sept.............................. 3 3 4,234 82 926 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 4 Represents a $600 million IMF gold sale to United States (1957), IMF operations. Does not include transactions in gold relating to gold less $6 million gold purchase by IMF from another member with U.S, deposit or gold investment (see Table 6). dollars (1948). _ 2 Represents purchases from the IMF of currencies of other members 5 Includes $259 million gold subscription to the IMF in June 1965 for for equivalent amounts of dollars. The United States has a commitment a U.S. quota increase, which became effective on Feb. 23, 1966. In figures to repay drawings within 3 to 5 years, but only to the extent that the published by the IMF from June 1965 through Jan. 1966, this gold sub­ holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. scription was included in the U.S. gold stock and excluded from the Drawings of dollars by other countries reduce the U.S. commitment to reserve position. repay by an equivalent amount. 3 Represents the U.S. gold tranche position in the IMF (the U.S. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota minus the holdings of dollars of the IMF), which is the amount quota was increased to $4,125 million in 1959 and to $5,160 million in that the United States could draw in foreign currencies virtually automati­ Feb. 1966. Under the Articles of Agreement, subscription payments equal cally if needed. Under appropriate conditions, the United States could to the quota have been made 25 percent 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. □ OCTOBER 1968 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to foreign countries Liabilities to Inti. Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions Official institutions 3 Banks and other foreigners regional organization5 Non­ p E e o r n i f o d d Total Total p G o d o s e i l ­ t d 1 i m n G v e o e n l s d t t 2 ­ Total i i p t S n l b i t i o e a e h a b r U s n r b o y t m k e i r . r l S t s d e ­ ­ . ­ M n b G U a a o o a o b n r n t .S e k v l d d e s . e t s , 4 t ­ c m T o b U a i a n o u r b b e r v n r . l S k l a y e e d e s e . r s ­ t t ­ ­ Total i i p S t l b n i i t o e a h a e b U r s n b r o y t m k i e . r r l S t d e s ­ ­ . ­ M b n G o U a a o a n o b n r t .S v k l e d d e s t . e s , 4 t ­ Total i i n p t S b l i t i o e a U h e a b r s n b r o y t . m k e i r r S l t d e s ­ ­ . ­ « M n b G U a o a o a o b n r n t . e k S l v d d e s e . t s , 4 t ­ and notes 1957.. 715,825 200 200 n.a. 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958.. ’16,845 200 200 n.a. 8,665 n.a. n.a. 5,950 n.a. n.a. 552 n.a. 1959.. 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 '20,994 800 800 11,078 10,212 866 7,591 7,048 543 1 ,525 750 775 19608 21,027 800 800 11,088 10,212 876 7,598 7,048 550 1,541 750 791 22,853 800 800 11,830 10,940 890 8,275 7,759 516 1,948 703 1,245 19618. 22,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1,245 (24,068 800 800 12,748 11,997 751 8,359 7,911 448 2,161 1 ,250 911 19628 24,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 1963 8. 26,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 19648 29,002 800 800 15,424 13,220 1,125 1 ,079 11,056 10,680 376 1 ,722 818 904 1965.. 29,115 834 34 800 15,372 13,066 1,105 1 ,201 11,478 11,006 472 1,431 679 752 129,904 1,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 19668 |29,779 1,011 211 800 13,655 12,539 860 256 14,208 13,680 528 905 580 325 1967—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 12,959 911 499 15,089 14,537 552 736 528 208 Oct.. 32,467 1,033 233 800 14,897 13,385 91 J 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 Dec. 8 (3 3 3 3 , , 1 3 6 0 9 5 1 1 , , 0 0 3 3 3 3 2 2 3 33 3 8 8 0 0 0 0 1 1 5 5 , , 6 6 8 7 3 7 1 1 4 4 , , 0 0 5 6 8 4 9 9 0 0 8 8 7 7 1 1 1 1 '1 1 5 5 , , 7 8 7 9 3 8 '1 1 5 5 , , 2 3 1 4 5 0 5 5 5 58 8 '6 6 8 91 6 '4 4 8 87 2 2 20 0 4 4 1968—Jan... '33,149 1,033 233 800 15,236 13,808 717 711 '16,188 ■■15,618 570 692 488 204 Feb.. '33,352 1 ,033 233 800 15,356 13,993 652 711 '16,327 '15,734 593 636 431 205 Mar.. '32,517 1 ,041 241 800 14,305 12,945 549 81 1 '16,416 '15,812 604 '755 '550 205 Apr.. '33,022 1 ,045 245 800 14,402 13,042 549 811 '16,752 '16,140 612 823 618 205 May. 33,127 1 ,047 247 800 13,635 12,278 546 811 17,823 17,213 610 622 455 167 June. 32,518 1,030 230 800 12,108 10,751 546 81 1 18,700 18,087 613 680 514 166 July?. 33,036 1,030 230 800 12,609 11,251 546 812 18,631 18,004 627 766 606 160 1 Represents liability on gold deposited by the International Monetary 8 Data on the two lines shown for this date differ because of changes in Fund to mitigate the impact on the U.S. gold stock of foreign purchases reporting coverage. Figures on the first line are comparable with those for the purpose of making gold subscriptions to the IMF under quota in­ shown for the preceding date; figures on the second line are comparable creases. with those shown for the following date. 2 U.S. Govt, obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States Note.—Based on Treasury Dept, data and on data reported to the to acquire income-earning assets. Upon termination of investment, the Treasury Dept, by banks and brokers in the United States. Data correspond same quantity of gold can be reacquired by the IMF. to statistics following in this section, except for minor rounding differences. 3 Includes Bank for International Settlements and European Fund. Table excludes IMF “holdings of dollars,” and holdings of U.S, Treasury 4 Derived by applying reported transactions to benchmark data; letters of credit and non-negotiable, non-interest-bearing special United breakdown of transactions by type of holder estimated for 1960-63. States notes held by other international and regional organizations. Includes securities issued by corporations and other agencies of the U.S. The liabilities figures are used by the Dept, of Commerce in the statistics Govt, that are guaranteed by the United States. measuring the U.S. balance of international payments on the liquidity 5 Principally the International Bank for Reconstruction and Develop­ basis; however, the balance of payments statistics include certain adjust­ ment and the Inter-American Development Bank. ments to Treasury data prior to 1963 and some rounding differences, and 6 Includes difference between cost value and face value of securities in they may differ because revisions of Treasury data have been incorporated IMF gold investment account. Liabilities data reported to the Treasury at varying times. The table does not include certain nonliquid liabilities include the face value of these securities, but in this table the cost value of to foreign official institutions that enter into the calculation of the official the securities is included under “Gold investment.” The difference, which reserve transactions balance by the Dept, of Commerce. amounted to $32 million at the end of 1966, is included in this column. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for which breakdown by type of holder is not available. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 c f o o T u r o n e t t i a r g i l n e s E W u e ro st p e e rn 1 Canada A re m p L u e a b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 1963......................................................................................... 14,353 8,445 1,789 1 058 2,731 154 176 1964......................................................................................... 15*424 9*220 1 608 1 238 3,020 160 178 1965........................................................................................ 15,372 8,608 1,528 1 *497 3,300 194 245 1966 3.................................................................................... /13.600 7,488 1,189 1,134 3,284 277 228 {13,655 7,488 1,189 1,134 3,339 277 228 1967—July.............................................................................. 14 158 8,297 909 1 315 3,160 246 231 Aug.............................................................................. 14,067 8,357 912 1*186 1’118 253 241 Sept............................................................................ 14 369 8,649 903 1 ’ 179 3,167 224 247 Oct............................................................................... 14 897 9,065 968 1 *214 3,166 228 256 Nov.............................................................................. 15 946 10 257 901 1 *261 3,048 224 255 Dec........................................................................... 15,677 9 872 996 1 *131 3 173 246 259 1968—Jan............................................................................... 15,236 9,373 J 091 1 210 3 084 226 252 Feb.............................................................................. 15,356 9,179 I 403 1 ’ 170 3,115 269 220 Mar............................................................................. 14*305 8,881 851 1,174 2*956 227 216 Apr............................................................................. 14302 8,624 1 ,040 1 ,371 2,889 244 234 May............................................................................. 13*635 7,908 1,035 1 380 2,823 248 241 June............................................................................ 12,108 7,034 671 1 197 2*761 256 189 July®........................................................................... 12,609 7,040 709 1 ,518 2,876 281 185 1 Includes Bank for International Settlements and European Fund. with those shown for the preceding date; figures on the second line are 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ comparable with those shown for the following date. pea 3 n D d a e t p a e n o d n e t n h c e ie t s w in o L lin at e i s n s A ho m w e n ri c f a o . r this date differ because of changes of N fo o re t i e g .— n c D o a u t n a t r r ie 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 l n i 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 it f u o t r i e o ig n n s in reporting coverage. Figures on the first line are comparable in coverage official holdings of marketable and convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional Foreign Other End of Grand Latin period total 1 Re­ Offi­ Europe Canada America Asia Africa c t o ri u e n s ­ Total 1 Inti. 1 gional2 Total cial 3 Other 1966......................... 27,599 1 ,380 1 ,270 110 26,219 12,539 13,680 13,933 2,502 3,883 5,250 385 266 1967-—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 >05 123 27 >96 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 1 5’250 15,834 2,688 4>21 5>52 332 309 Nov............... 31*241 1 ,352 1 '221 131 29*891 14,327 15 >64 17*142 2,613 4,221 5,28! 328 306 / 30,691 1 ’,287 1 ;i8i 106 29 >04 14^064 15^340 16*378 2,706 4 J40 5,521 349 310 Dec. 4........... >30 555 d ,282 1,181 ’101 ’•29,273 14 058 "15,215 16,199 2,709 4,137 "5,570 349 310 1968—Jan................ "30,714 1,288 1,190 98 "29,426 13,808 "15,618 16,033 3,101 4,194 "5,461 326 312 Feb................ >0>58 I *231 1,117 114 "29 >27 13'993 "15>34 16*129 3,201 4; 126 "5,550 434 286 Mar.............. "30 J 07 M *350 1 '258 "92 "28*757 12'945 "15,812 15,861 2,791 4,075 "5,404 339 287 Apr................ r30,600 1 *418 1 ,326 92 "29 J 82 13'042 "16,140 15,846 2,943 4*299 "5,432 366 295 May.............. 30,746 1 ,255 1 '166 89 29,491 12>78 17*213 16,100 3,055 4 >89 5 >65 371 310 June.............. 3OJ52 1 ,314 1 ',219 95 28*838 10'751 18,087 15,797 2,842 4,174 5,394 370 261 July*............. 30*661 1 *406 1 ,300 106 29*255 11 >51 18,004 15*704 2,894 4,476 5,539 397 246 Aug.’'............ 31 ,*225 1 ,404 1,297 107 29,821 11,191 18,630 15 >77 3,140 4,403 5,681 356 264 8a. Europe E pe n r d i o o d f Total Austria B L b e o u l u g x r i e g u m m 5 ­ - m De a n rk ­ l F a i n n d ­ France R m G F e a p e e n , d r y . ­ o , f Greece Italy N la e n 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—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.... 15,834 176 625 211 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 I ,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 I ,534 330 399 394 134 565 May .. 16,100 165 530 178 140 959 2,009 154 1 ,364 272 404 381 153 582 June... 15,797 164 420 185 150 1,262 1 ,705 152 988 245 411 338 144 510 July!’. . 15,704 172 373 144 161 881 1 ,834 173 998 242 435 325 151 514 AugA. 15,977 148 381 149 156 977 1 ,779 184 1,109 315 485 323 196 543 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. □ OCTOBER 1968 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 8a. Europe—Continued 8b. Latin America E p n er d i o o d f Sw la i n tz d er­ Turkey U K d n i o i n m te g d ­ Y sl u av g i o a ­ W E O u e t r s h o t e e p r r e n 6 U.S.S.R. E E O a u s t r h t o e e p r r n e Total A t r i g n e a n­ Brazil Chile Co b l i o a m­ Cuba Mexico 1966................. 1 ,805 43 3,817 37 234 8 40 3,883 418 299 261 178 8 632 1967—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 Dec. 4. . v (1 , , 7 7 3 3 2 2 3 33 3 4 4 , , 8 6 5 6 1 7 2 2 3 3 7 7 3 0 6 6 8 8 4 4 4 4 4 4, , 1 1 3 4 7 0 4 4 7 8 9 0 2 2 3 3 7 7 2 2 5 52 2 1 1 6 6 9 9 9 9 7 7 2 2 3 0 1968—Jan........ 1 ,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.... '1,544 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 4,174 429 258 245 201 8 789 July*. .. 1 ,863 22 6,957 20 401 6 32 4,476 640 248 251 182 8 813 Aug.*... 1 ,745 18 7,006 29 395 5 34 4,403 502 301 304 189 8 776 8b. Latin America—Continued 8c. Asia E p n er d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ 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—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 Dec.4... ( ( 1 1 7 7 0 0 2 27 7 4 4 1 14 4 7 7 7 79 9 3 3 5 5 2 2 3 3 2 2 3 3 3 3 1 11 1 1 1 1 1 8 8 * 5 5 , , 5 5 2 7 1 0 3 3 6 6 2 2 1 1 5 7 3 3 5 54 4 3 3 4 4 1 1 3 37 7 1968—Jan........ 160 281 143 851 512 276 108 18 *5,461 37 *228 329 40 125 Feb....... 153 267 152 770 559 252 89 17 *5,550 36 226 351 42 146 Mar. . .. 137 259 143 730 579 242 86 19 *5,404 37 228 319 39 122 Apr. . . . 136 276 140 814 603 242 90 25 *5,432 36 221 342 46 131 May.... 142 272 144 780 579 226 86 25 5,365 36 238 368 41 140 June.... 150 278 138 742 592 220 100 25 5,394 36 243 384 74 139 July*. .. 151 268 133 797 622 245 91 27 5,539 36 255 376 51 149 Aug.*.. . 144 278 140 792 621 234 86 28 5,681 36 255 394 51 149 8c. Asia—Continued 8d. Africa 8c. Other countries E pe n r d i o o d f Japan Korea P p h in il e ip s ­ T w a an i­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a o ­ ) r M oc o co ­ A So fr u 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—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 Dec.4. .. / I ’’2 2 , , 6 56 1 3 2 1 1 7 76 6 2 2 9 9 1 1 2 2 2 2 2 6 6 6 3 3 0 0 8 8 5 5 8 9 3 3 4 4 9 9 3 33 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.......... *2,508 195 299 216 655 830 326 30 17 61 18 201 312 285 27 Feb.......... *■2,559 181 293 211 661 843 434 30 22 53 15 315 286 254 33 Mar......... *7,551 174 292 209 669 764 339 28 22 57 17 215 287 258 29 Apr.......... *■2,555 185 288 196 692 740 366 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........ 2,537 172 268 196 689 655 370 21 21 47 19 261 261 232 29 July*....... 2,662 178 269 206 684 671 397 22 20 51 19 284 246 220 25 Aug.*. . .. 2,827 179 263 201 698 627 356 18 19 52 21 246 264 240 24 1 Data exclude the “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line are Fund. comparable with those shown for the following date. 2 Latin American, Asian, African, and European regional organiza­ 5 Through the first line for Dec. 1967 Luxembourg was included in tions, except Bank for International Settlements and European Fund Other Western Europe. which are included in “Europe.” includes Bank for International Settlements and European Fund; 3 Foreign central banks and foreign central govts, and their agencies, beginning with the second line for Dec. 1967 excludes Luxembourg. and Bank for International Settlements and European Fund. 4 Data on the two lines shown for this date differ because of changes in For Note see end of Table 8. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-77 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 8f. Supplementary data 7 (end of period) 1966 1967 1968 1966 1967 1968 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus.................................. 1.7 1 5 1.7 20.9 Jordan ......................................... 39.7 45.2 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 (incl. 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 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 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 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 All other: Iraq................................................ 17.6 28.0 34.6 New Zealand.............................. 13.6 16.7 17.5 15.4 7 Represent a partial breakdown of the amounts shown in the “other” their date of issue. Data exclude the “holdings of dollars” of the Interna­ categories (except “Other Eastern Europe”) in Tables 8a-8e. tional Monetary Fund; for explanation see note following Table 3. Data 8 Included with Belgium. exclude also U.S. Treasury letters of credit and non-negotiable, non­ interest-bearing special U.S. notes held by the Inter-American Develop­ Note.'—Short-term liabilities are principally deposits (demand and ment Bank and the International Development Association. time) and U.S. Govt, securities maturing in not more than 1 year from For data on long-term liabilities, see Table 14. 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks, official and international institutions1 To all other foreigners Payable End of period Total in foreign Deposits U.S. Deposits U.S. currencies Total T bi r l e ls a s a u n r d y Other 3 Total T bi r l e ls a s a u n r d y Other 3 Demand Time 2 certificates Demand Time 2 certificates 1966............................... 27,599 23,266 8 371 4,050 7,464 3,381 3,744 1,513 1 ,819 83 329 589 1967—Aug.................... 28,486 24,223 8 915 3 737 7,896 3,675 3 831 1,515 1 ,916 69 331 432 Sept.................... 28,824 24,539 9^044 3,800 8,035 3,660 3,907 1 ,579 1 ,937 76 315 379 Oct..................... 29 954 25,690 9 846 3 956 8 1 17 3 ,771 3 983 1 ,577 1 ,999 84 322 282 Nov.................. . 31,243 26^936 9^994 3,853 9,444 3,644 4’077 1 ,630 2,047 76 324 231 Dec.4................. r / [ 3 3 0 0 . , 6 55 9 5 I ’ 2 26 6 , , 1 3 9 3 8 4 1 9 0 , , 8 0 8 5 4 4 3 3 , , 7 7 5 6 3 4 9 9 , , 0 0 9 9 3 3 ’ 3 3 , , 4 4 2 6 3 8 4 4, , 1 1 2 2 8 8 1 1 , , 6 6 9 9 3 3 2 2 , , 0 05 5 7 2 8 8 1 1 2 3 9 0 7 2 2 2 2 2 9 9 1968—Jan..................... ’30 714 ’26,376 r10 148 3,678 8 867 ’3,682 4 046 1 576 2,083 103 283 291 Feb..................... ’30 958 ’26,559 10,203 3 600 8 ,943 ’’3’813 4,091 1 581 2; 090 104 315 308 Mar.................... ’30 107 ’25,699 10 487 3 459 8 098 ’3'654 4 085 1 585 2’055 101 344 323 Apr.................... ’30 600 ’26,221 10 750 3,522 8 ,047 ’3 903 4 080 1 607 2’059 86 327 300 May.................... 30’746 26,371 11 914 3 415 7 082 3 ’960 4 055 1 582 2’048 88 337 320 June................... 30 152 25,655 12 252 3,340 6,067 3 995 4 174 1 ,694 2’050 88 342 323 July’’.................. 30,661 26,035 12*370 3 416 6,031 4,219 4 I 14 1 ,613 2,070 79 352 512 Aug.”................. 31,225 26,596 12^855 3,494 6,171 4,077 4,120 1 ,581 2^071 82 386 509 i 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 arc comparable in coverage i Excludes negotiable time certificates of deposit, which arc included with those shown for the preceding date; figures on the second line are in “Other.” comparable with those shown for the following date. 3 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ OCTOBER 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Aug.P Europe: Austria............................... 3 3 3 3 3 3 3 3 3 3 3 3 Denmark............................ 13 12 12 12 12 12 12 12 12 12 France................................. 7 6 6 7 7 7 7 7 7 7 7 7 7 7 Germany............................. 2 2 2 2 2 2 2 2 Italy.................................. 2 9 9 9 9 9 9 6 6 6 6 6 6 6 Netherlands........................ 5 4 4 5 5 5 4 4 4 4 4 4 4 4 Norway.............................. 51 51 51 51 51 51 51 49 49 49 46 46 46 27 Spain.................................. 2 2 2 2 2 2 2 2 2 Sweden............................... 24 24 24 24 24 24 24 24 24 26 26 26 26 6 Switzerland......................... 93 87 87 91 91 91 91 92 91 91 92 91 91 90 United Kingdom............... 348 375 379 383 371 380 390 415 423 431 427 432 445 455 Other Western Europe.. .. 49 51 51 51 51 51 51 38 38 39 38 38 38 Eastern Europe.................. 7 7 7 7 7 7 7 7 7 7 7 7 7 6 Total 605 633 637 646 634 643 652 674 669 677 671 674 686 655 Canada 692 717 718 716 715 716 527 463 378 377 377 377 376 374 Latin America; Latin American republics.. 8 6 6 6 6 6 6 6 5 5 5 5 5 5 Other Latin America......... 19 18 18 18 18 18 20 20 20 19 19 19 22 24 Total 25 24 24 24 24 24 25 26 25 24 25 25 27 29 Asia: Japan..... 9 9 9 9 9 9 9 9 9 9 10 10 10 10 Other Asia 42 54 54 54 54 54 54 54 54 54 54 54 54 52 Total 50 63 63 63 63 63 63 62 63 63 63 63 63 62 Africa 15 22 22 22 19 19 19 19 19 19 19 19 19 24 Other countries Total foreign countries. 1,388 1,459 1,463 1,472 1 ,455 1 ,466 1 ,287 1 ,245 1,153 1 ,161 1,156 1 ,159 1 ,173 1 ,145 International and regional: International.................. 250 169 169 169 169 168 168 168 168 168 129 129 122 122 Latin American regional... 75 38 38 38 35 35 36 36 36 36 37 37 38 38 Other regional............... Total 325 207 207 207 204 204 204 205 205 205 166 167 160 160 1,670 | 1 ,491 Grand total 1,713 1,666 1,671 1,679 1,659 1 ,450 1 ,358 1 ,366 1 ,323 1 ,325 1,333 1 ,305 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 Can­ Den­ Swe­ Tai­ Aus­ Bel­ Ger­ Swit­ Total gium ada 1 mark Italy* Korea den wan Total tria gium many3 Italy zerland B.LS. 1964.......................................... 1 440 354 329 25 1 086 50 30 679 257 70 1965.......................................... 1 692 484 299 160 25 1 208 101 30 602 125 257 93 1966.......................................... 695 353 144 1 84 25 342 25 30 50 125 111 1967—Sept............................... 1,257 546 344 178 25 710 50 376 125 159 Oct........................ 1 ,483 546 344 178 25 937 50 551 125 211 Nov............................. 1 563 516 314 177 25 1 047 50 60 601 125 211 Dec............................... 1 563 516 314 177 25 i ’047 50 60 601 125 211 1968—Jan................................ 1 ,484 312 114 173 25 1,172 50 60 726 125 211 Feb................................ 1 479 307 114 168 25 1,172 50 60 726 125 211 Mar............................... 1 879 606 414 167 25 1 ,'272 50 60 726 125 311 Apr.............................. 2,002 604 414 165 25 1 398 50 60 852 125 31! May............................... 2,302 904 714 165 25 1,398 50 60 852 125 311 June.............................. 2’506 1 108 12 914 10 147 25 1 ,398 50 60 852 125 311 July............................... 2 521 1 122 12 914 10 1 46 15 25 1 399 50 60 852 125 311 Aug.............................. 2,595 1122 12 914 10 146 15 25 1 ,473 50 60 926 125 311 Sept............................... 2,865 1 ^392 12 1,164 20 146 15 25 10 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 3 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

OCTOBER 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 th tr e ie r s 1964................................................................................. 7,957 * 1,230 1,004 2.235 3,294 131 64 1965 1............................................................................... J 1 7 7 . , 6 7 3 3 2 “' • 1 1 , , 2 2 0 0 1 8 5 6 9 6 3 9 2 2 , , 2 2 8 9 8 3 3 3 , , 3 3 4 5 3 8 1 1 3 3 9 9 6 6 7 7 1966 1............................................................................... J7.819 1 1,366 620 2,489 3,135 147 62 17,853 1 1,374 611 2,453 3,206 147 62 1967 Aug................................................................. 8 282 1 1 342 602 7 587 3 560 119 71 Sept................................................................. 8*349 1 *317 574 2*579 3 692 115 71 Oct...................................................................... 8 *275 1 *268 572 2*554 3 704 108 70 Nov...................................................................... 8*360 * 1 224 564 2 603 3,791 107 71 Dec. I................................................................. {^597 * 1 ^234 611 2’,707 3,875 102 67 r}8,620 1,238 611 2,707 r3,894 102 67 1968—Jan........................................................................ r8 448 1 138 554 r2 687 r3 899 101 70 Feb.................................................................. rg’542 1 ’133 547 ’2716 r3 957 117 71 Mar...................................................................... ’8*401 * 1 *060 527 ’2*696 ’3,944 106 68 Apr....................................................................... r8 409 1 101 510 ’2*696 ’3 932 105 65 May...................................................................... 8*342 * 1 156 490 2*699 3 813 116 68 June..................................................................... 8 *241 1 1 ,101 476 2*705 3,776 120 63 July*..................................................................... 8*193 1 1 ,019 512 2,738 3,735 124 65 Aug.”.................................................................... 8,227 1 1 ,’006 488 2,812 3,731 120 70 12r. Europe Bel­ End of period Total A tr u ia s­ L g u iu x m em - ­ D m e a n rk ­ F la i n n d ­ France G Fe e d rm . R an e y p , . Greece Italy N e e r t ­ h­ N w o ay r­ t P u o g r a ­ l Spain S d w en e­ bourg2 of lands 1964.............................. 1 .230 11 48 26 84 81 152 10 114 36 43 23 40 49 1965 1........................... J (1 I , , 2 2 0 01 8 8 8 5 5 2 2 3 3 7 7 8 8 7 7 7 7 2 2 1 1 9 9 0 0 1 1 3 3 1 1 1 10 0 3 3 8 8 5 5 1 1 2 2 6 6 5 5 0 0 5 5 2 2 1966 i........................... J (1 I , , 3 3 7 6 4 6 1 16 6 6 6 7 7 6 6 2 2 9 9 1 1 7 7 3 4 2 21 2 5 7 1 1 6 6 1 1 0 1 8 0 4 4 0 0 7 7 6 6 4 4 1 1 6 6 7 7 7 75 4 (967—Aug................ r 342 16 65 37 93 74 184 15 61 30 51 26 61 68 Sept.................... 1 ,317 24 66 33 90 79 189 18 57 36 52 26 53 65 Oct................. 1 ,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. .. .......... JI,234 17 66 37 78 88 176 19 58 35 61 26 54 75 (1,238 16 83 37 78 88 179 19 58 35 61 26 54 75 1968—Jan..................... 1 ITS 9 57 34 78 60 151 19 51 38 61 22 54 65 Feb..................... 1,133 9 64 32 77 74 140 19 55 37 55 19 53 58 Mar.................... 1 ,060 7 58 39 77 59 116 14 58 31 55 16 76 59 Apr.................... 1,101 7 57 30 77 66 113 17 65 38 59 16 73 61 May................... 1,156 6 62 38 71 83 100 17 72 42 55 17 50 62 June.................. 1,101 7 61 30 70 58 126 17 87 37 44 15 52 56 July*.................. 1 ,019 6 54 31 68 50 108 15 76 35 45 16 50 57 Aug.*................. 1 ,006 13 49 32 66 51 114 15 71 33 47 16 46 54 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 t g ed ­ Y sl u av g i o a ­ E W O u e r t s o h t p e er r e n 2 U.S.S.R. E E O u as r th o te e p r r e n Total A t r i g n e a n­ Brazil Chile l C o b m i o a ­ ­ Cuba M ic e o x­ 1964.............................. 111 37 310 16 20 20 2,235 203 126 176 338 17 644 1965 1 ........................... J (7 7 3 3 4 4 2 2 2 2 1 1 0 6 2 2 8 8 2 2 8 8 6 6 2 2 7 7 2 2, , 2 2 9 8 3 8 2 2 3 3 2 2 9 9 4 4 1 1 7 7 4 4 2 2 7 7 0 0 1 1 6 6 6 6 6 7 9 4 1966 t........................... (83 52 210 19 37 2 16 2,489 193 114 159 308 16 161 (88 52 193 19 40 2 16 2,453 187 112 158 305 16 151 1967—Aug.................... 119 47 321 22 28 24 2,587 185 117 160 242 16 943 Sept.................... 111 49 290 23 36 2 20 2,579 189 118 170 244 16 944 Oct............ 118 34 250 19 33 * 19 2,554 199 124 172 227 16 929 Nov.................... 110 23 232 19 34 19 2,603 208 136 175 227 16 910 Dec, 1.............. J (9 9 8 8 3 3 8 8 2 2 4 4 4 4 1 1 3 3 3 1 0 3 3 3 1 1 8 8 2 2 , , 7 7 0 0 7 7 2 2 2 2 1 1 1 1 7 73 3 1 1 7 7 7 7 2 2 1 17 7 1 1 6 6 9 9 6 6 0 0 1968—Tan..................... 106 37 232 15 24 3 21 ’•2,687 218 197 '193 201 15 950 Feb..................... 106 37 249 15 ll 2 20 T2,716 227 221 ’182 193 15 991 Mar.................... 76 28 241 15 LI 1 23 ’2,696 198 213 ’184 190 15 I ,007 Apr.................... 93 33 238 17 12 3 25 ’2,696 208 233 176 188 15 983 May................... 104 34 279 19 11 2 31 2,699 210 249 166 190 15 977 June................... 76 41 267 20 IL ♦ 26 2,705 195 238 166 202 14 972 July*.................. 78 23 249 17 11 29 2,738 203 283 169 202 14 988 Aug.*................. 78 28 241 15 12 1 23 2,812 206 350 174 195 14 966 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. □ OCTOBER 1968 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 12b. Latin America—Continued 12c. Asia Other Baha­ Neth. Other E p n er d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ r l e L ic p . s A ub . ­ B m & e a r s ­ A S n u t & i r l i l ­ es A L m i a c 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 muda nam 1964................. 49 108 78 168 224 65 18 21 3,294 2 28 21 7 47 19651................ ( 1 5 5 9 9 1 1 7 7 0 0 4 4 5 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 5 4 8 3 1 1 2 2 9 9 1 1 7 7 2 2 8 8 6 6 19661............... I84 211 45 226 272 61 18 17 3,135 1 31 16 6 98 185 212 45 220 261 61 18 16 3,206 1 31 16 6 98 1967 —Aug.. .. 62 244 60 214 249 59 18 19 3,560 1 35 II 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 II 6 59 Nov..... 55 248 46 211 288 54 10 20 3,791 2 29 11 6 58 (47 249 42 226 289 63 10 18 3,875 1 . 28 10 5 57 H? 249 42 226 289 63 10 18 0,894 1 30 10 5 57 1968—Jan........ 52 248 40 224 266 53 10 19 '3,899 1 28 14 5 50 Feb....... 52 246 38 228 252 46 10 18 '3,957 1 30 12 9 46 Mar...... 53 233 40 221 254 62 9 18 r3,944 1 30 12 9 47 Apr....... 52 230 35 '215 261 71 10 19 r3,932 1 27 15 10 51 May. . . . 50 229 30 211 265 77 11 19 3,813 1 30 12 10 54 June.... 52 220 31 212 263 109 13 17 3,776 1 33 14 24 56 Julyf. .. 50 205 36 211 276 73 13 15 3,735 1 29 20 20 53 Aug,’’.. . 50 199 45 211 278 93 14 17 3,731 1 27 13 22 56 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 g n a o ­ ) Mo co roc­ A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total A t l r i u a a s ­ ­ o A th ll e r 1964....................... 2,810 21 203 9 65 82 131 1 2 20 42 67 64 48 16 (2,'751 22 231 15 82 108 139 1 2 34 43 60 67 52 15 19651..................... )2,768 22 230 15 82 107 139 1 2 34 43 60 67 52 15 (2,502 31 220 14 81 134 147 1 2 50 25 69 62 52 10 19661..................... 12,572 31 220 15 81 135 147 1 2 50 25 69 62 52 10 1967—Aug............. 2,864 46 299 23 88 119 119 2 33 25 59 71 59 13 Sept............. 2,977 47 324 29 84 119 115 ♦ 3 35 18 60 71 58 13 Oct.............. 2'986 48 323 27 84 124 108 2 35 18 53 70 57 13 Nov............. 3,062 46 326 31 90 131 107 1 2 37 14 54 71 58 13 Dec.1...... ( \3 3 , , 1 1 5 4 4 7 5 5 9 9 '3 2 0 9 3 5 3 37 7 1 1 0 0 0 0 '1 1 3 3 8 7 1 1 0 0 2 2 1 1 2 2 3 3 7 7 1 11 1 5 5 2 2 6 6 7 7 5 5 4 4 1 1 3 3 1968—Jan............... 3,181 48 '298 41 '106 '127 101 1 2 37 12 49 70 58 13 Feb.............. 3,213 52 '313 44 107 '129 117 1 3 39 11 64 71 59 12 Mar............. 3^213 54 '313 44 92 '130 106 2 37 11 55 68 55 13 Apr............. 3’223 54 '291 42 '91 '128 105 2 3 39 14 46 65 53 12 May............ 3’105 51 290 41 93 127 116 4 5 40 16 51 68 54 14 June............ 3,048 53 293 38 90 125 120 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 Aug.’*.......... 3,007 51 291 40 95 130 120 3 4 42 13 58 70 57 14 1 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 Une are comparable in coverage on demand or with a contractual maturity of not more than 1 year: loans with those shown for the preceding date; figures on the second line are made to, and acceptances made for, foreigners; drafts drawn against comparable with those shown for the following date. foreigners, where collection is being made by banks and bankers for 2 Through the first line for Dec. 1967 Luxembourg was included in their own account or for account of their customers in the United States; Other Western Europe. and foreign currency balances held abroad by banks and bankers and 3 Beginning with the second line for Dec. 1967 excludes Luxembourg. their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 Loans to— Foreign End of period Total Total Total O in f s f t i i c t i u a ­ l Banks Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A o o m a c f r n c a c a f e d e o c p e s r c t ­ ­ t, Other Total D w e e i i g p th n o e s f r o it s r s ­ g c o a n u c v n a o r t d i n m , t i c e s f l e i . e s ­ , ­ Other tions1 eigners paper 1964............................. 7,957 7,333 2,773 221 1 ,403 1 ,150 1,135 2,621 803 624 336 187 102 1965 2........................... J 17 7 , , 6 7 3 34 2 7 7 , , 1 2 5 4 8 3 2 2, ’, 9 9 7 67 0 2 2 7 71 1 1 1 , , 5 5 6 6 6 7 1 1 ’, ,1 1 3 3 2 0 1 1 , , 2 2 6 7 8 2 2 2, ’, 5 50 0 1 8 4 4 9 22 2 4 49 7 2 4 3 3 2 2 5 9 5 68 4 9 9 5 6 1966 2........................... / ( 7 7 , , 8 8 1 5 9 3 7 7 , , 3 4 9 3 9 3 3 3 , , 1 1 4 3 1 8 2 2 5 56 6 1 1 , , 7 7 3 3 9 9 1 1 , , 1 1 4 4 3 5 1 1 , , 2 36 8 7 8 2 2 , , 5 4 4 5 0 0 4 4 4 6 3 4 4 4 2 2 0 0 2 2 4 4 1 0 7 7 0 0 1 1 1 1 0 0 1967—Aug................... 8,282 7 771 2,918 287 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.................... 8'275 7 842 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................ * / • a (8 ;5 ,6 9 2 7 0 r8 8, , 1 1 7 9 2 6 3 3 , ’ 1 1 6 5 4 1 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 5 i 2 i 3 3 , ; 0 o 1 i 3 3 * 4 4 9 6 8 7 4 4 2 2 5 5 2 2 8 87 7 7 74 4 6 6 3 3 1968—Jan..................... *8,448 *8,045 3,073 293 1 ,557 1 ,223 1 ,560 3,025 r387 403 261 70 72 Feb.................... *8'542 *8,176 3 J 66 303 1 '652 1 ,212 1 ,’628 2'978 *403 366 254 55 57 Mar................... *8'401 *8,076 3'045 306 1 '527 1 ,212 1 ,630 2^991 *410 325 219 50 56 Apr................... *8'409 *8 062 3,036 278 1 ,’563 1’194 1 ’612 3,016 T399 347 240 50 57 May.............. 8,342 8,021 3'090 268 1 ',621 1 ,201 1 ,610 2',886 435 321 220 48 53 June.................. 8,241 7’916 3'041 288 1 '604 1,149 1 '615 2,796 464 325 228 43 55 July7’................. 8'193 7,855 3'020 276 I '570 1 ,173 1 '586 2,787 463 338 230 51 57 Aug J’............... 8,227 7,903 3,023 300 1 ;573 1 ,151 1 ,606 2,824 450 325 225 46 55 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 datereporting coverage. Figures on the first line are comparable in coverage 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area End of period Inter­ Total F c o t o r r i e u e i n s g ­ n n re a g a ti i n o o d n n a al l Total P L a o y a a n b s le in d o A o th l l l e l a r rs P f r o e a c n r y i u e c n a i r i b g ­ e l n s e U K d n o in i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r t c O r o i t e u h s n e r ­ 1 1964............... 310 204 106 4,285 3,995 288 1 87 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 J43 326 1 '346 326 409 562 1967—Aug..,. 2,533 1 ,891 642 3,894 3,635 242 17 51 942 352 1 ,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 1,663 626 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 *3,911 3,621 *274 15 56 720 413 1,556 180 *449 537 1968—Jan.. .. 2,508 1 ,825 683 *■3,900 3,579 *■308 12 57 708 416 1 ,519 176 M91 533 Feb.... 2,530 1 ,851 679 *•3,845 3,521 *314 10 55 684 400 1 ,477 175 *•515 539 Mar.... 2,571 1 ,937 634 *3,771 3,448 *312 11 54 671 401 1 ,441 172 ’522 509 Apr.... 2,615 1 ,990 625 *3,831 *•3,491 *•330 11 65 661 421 1 ,450 362 *■553 519 May... 2,712 2,032 680 3,773 3,414 348 11 65 632 415 I ,442 151 553 514 June... 2,754 2,098 656 3,736 3,377 348 11 65 601 417 1 ,435 152 559 506 July”.. 2,592 1 ,963 629 3,605 3,250 344 11 65 552 400 1 ,408 145 545 491 Aug.”,, 2,700 2,073 627 3,61 1 3,256 344 12 70 519 418 1 ,401 138 564 502 1 Includes Africa. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-82 INTL. CAPITAL TRANSACTIONS OF THE U.S. OCTOBER 1968 d 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 -t ,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 ’‘2,024 '3,187 '-1,163 880 1 ,037 -157 1967--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 Noy.................. -20 -4 -16 -3 -14 883 '922 -39 112 142 -30 75 89 -14 Dec.................. 10 * 10 10 I ,034 795 240 '120 '262 '-142 94 155 -61 1968--Jan................... -178 1 -179 -191 13 H , 163 854 '309 '81 '276 '-196 68 79 -11 Feb................... -42 * -42 -65 23 '1 ,021 689 '332 '160 '266 '-105 70 80 -10 Mar.................. -92 * -92 -103 11 1 ,089 809 279 '320 '415 '-95 110 148 -38 Apr.................. 8 8 8 1 ,288 '998 '291 U6I '369 '-207 73 79 -6 May................. -44 -39 -5 -3 -2 1 ,769 1,315 454 305 185 120 87 1 10 -22 June................. 3 2 -1 3 t ,415 1,117 297 100 237 -136 94 1 13 -19 July’’................ 8 -6 14 14 1,371 1,035 336 167 253 -86 81 81 - 1 Aug?’............... -28 * -28 -36 8 1 ,229 968 261 141 225 -84 100 179 -79 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 11. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. 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—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 O D N e c o c t v . . . . . . . . - - 2 3 1 4 8 9 0 8 1 15 3 58 8 9 - - 2 17 4 8 8 6 2 1 1 9 2 2 4 8 5 7 5 7 - - 2 3 2 0 1 1 2 3 2 2 3 9 8 7 - - 2 1 1 1 2 4 3 0 1 4 3 9 2 6 4 2 4 4 8 2 1 3 3 1 * • * 1 3 1 - - 8 4 3 1968—Jan.. . '309 167 ’141 '18 '104 '11 '74 '207 62 '17 5 3 1 14 Feb... '332 78 '254 '32 90 '89 '91 '302 23 T~6 5 • 8 M Ap a r. r . . . . '2 2 9 7 1 9 2 26 4 1 7 '3 3 0 2 2 1 2 0 10 3 3 4 7 4 26 2 8 2 3 1 1 51 9 '8 2 1 9 -1 3 4 6 16 5 • 1 * -59 7 May.. 454 82 372 42 81 166 159 447 19 21 12 • 1 -46 June.. 297 179 118 16 109 55 26 206 52 17 19 * 3 July’’. 336 198 138 36 151 3 59 248 61 6 20 1 -1 Aug.’’. 261 82 178 32 69 50 89 240 7 -4 8 -1 * 10 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. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 1968 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A-83 17. NET PURCHASES OR SALES BY FOREIGNERS OF IB. DEPOSITS, U.S. GOVT. SECURITIES, LONG-TERM FOREIGN SECURITIES, BY AREA AND GOLD HELD AT F.R. BANKS FOR FOREIGNERS (In millions of dollars) (In millions of dollars) Period Total g I a i r n o n e t n d i ­ a , l c T e t f o r o i o i g u t e r a n n s ­ l ­ r E o u pe ­ C a a d n a ­ A L i a m c t a i e n r ­ Asia r A ic f a ­ O c t o r t i u h e e n s r ­ E pe n r d i o o d f Deposits U.S A . G ss o e v ts t . i n cu E s a t r o m d a y rked securities1 gold 1964................... -728 -140 — 588 163 -670 -36 -77 7 25 1965................... -953 -164 — 788 108 -659 -55 - 131 3 -54 1964............. 229 8 389 12 698 1966............ 1 .. 9 .. 6 .. 7 . ...'.1. - . 6 .,.3. 8 .2. 5 0....... - -. 1 3 7 9 1 3 — ’-9 5 2 1 7 4 214 3 - '- 7 7 2 6 6 8 — 3 8 9 -1 — 52 7 -2 1 0 6 -2 — 7 2 1 1 9 9 6 6 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 5 7 0 4 7 8 , ,0 2 3 7 6 2 1 12 2 .8 9 9 4 6 6 1967—Aug........ -117 -43 -75 -23 -24 2 -31 -1 2 1967—Sept... 117 7,558 12,992 D O S N e e c o p c t v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '- - - 2 1 1 - 0 4 7 4 3 4 5 4 - - 7 3 - 1 4 2 7 3 - - - 2 1 0 1 - 5 0 7 0 3 7 -6 - - 4 4 2 7 - - 1 1 '1 0 4 2 1 8 5 6 -6 2 3 * - - 1 - 1 1 9 4 5 - - 8 3 ♦ * 2 2 2 * O N De o c c t v . . . , . . . . . . 1 1 1 3 6 3 5 5 8 9 9 7 , , , 2 8 4 6 2 5 1 3 6 1 1 13 3 3 , , . 2 0 0 5 3 0 3 2 0 1968—J F a e n b . . . . . . . . . . . . . . . . . . ' r - — 2 1 0 1 6 5 6 1 4 0 r '- — 1 14 25 2 '49 ' - - 1 1 1 3 2 2 '-5 -1 4 -1 — 2 3 - - 1 5 ♦ 1 1968—J F M a e n a b r . . . . . . . . . . 1 1 1 9 9 6 7 2 0 8 8 8 , , , 8 4 9 6 1 2 1 8 2 1 1 1 3 3 3 , , , 2 2 4 0 3 6 1 2 6 Mar........ '-133 -33 r —99 '-31 -9 -40 10 -31 2 Apr... 140 8,763 13,614 Apr......... '-213 -54 r-159 r6 '-158 -8 -2 2 May.. 422 8,328 13,645 J J M A u u u n a ly y e g . . " A . . . . . . . . . . . . . . . . . . . - - 1 1 -8 5 6 9 7 5 4 7 - - 1 1 13 4 3 7 2 - - 1 1 - - 7 4 5 5 1 2 0 7 - -5 1 5 3 3 5 8 -1 - - - 5 9 3 0 6 0 7 3 - - 2 6 - - 2 6 7 0 -2 - - 1 7 8 0 8 -1 - -4 4 7 * 2 2 1 J J S A u u e u l n p y g e t . . . . . . . . . . . 2 1 1 1 0 2 5 9 2 7 3 2 7 7 7 7 , , , , 6 5 7 6 0 9 7 7 9 0 7 6 1 1 1 1 3 3 3 3 , , , , 2 3 2 1 8 5 3 8 1 7 2 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 July 5........................... 3,078 Feb. 7............................ 4,352 Feb. 26.......................... 1 ,077 Feb. 23........................... I ,902 ' 12........................... 3,304 14........................... 4,474 Mar. 25.......................... 1 ,046 Mar. 30........................... 1 ,879 19........................... 3‘,558 21........................... 4,739 26........................... 3,660 28............................ 4 530 Apr. 29.......................... 1,146 1 ,909 May 27.......................... 1,132 May 25........................... 2,003 Aug. 2........................... 3,370 June 24.................... 917 1 ,951 9........................... 3,669 16........................... 3,877 20 4*430 July 29.......................... 1 ,008 July 27........................... 2,786 23........................... 4,031 27 4*920 Aug. 26.......................... 1,166 3,134 30........................... 3,976 Sept. 30.......................... 1,166 3,472 3 848 Apr. 3........................... 4,768 13 3 840 10........................... 4,606 Oct. 28.......................... 1,198 Oct. 26........................... 3,671 20 17........................... 4,845 Nov. 25.......................... 1 ,380 Nov. 30........................... 3,786 27 4 059 24........................... 5 ,020 Dec. 30.......................... 1,183 Dec. 28........................... 4,036 Oct. 4........................... 4,047 4,784 II........................... 4’293 - 8........5.. ..2..3..5........... 1965 1967 18........................... 4 235 15........................... 5 426 25 ......................... 4 322 22........................... 5,968 Jan. 27.......................... 1 ,358 Jan. 25........................... 3,653 29........................... 5’888 Feb. 24.......................... 1 ,592 Feb. 22........................... 3,396 Nov. 1........................... 4,320 Mar. 31.................... 1 ,431 3,412 8........................... 4*560 6 053 15........................... 4,623 12 6 285 Apr. 28...................... 1 ,433 3,047 22........................... 4,864 19 6*203 May 26.......................... 1,432 29........................... 4,206 26 6 241 June 30 . . 1 ,436 May 3.......................... 2,843 Dec. 6........................... 4 480 ' I0.........2..,.7..9..0.. ......... 13 July 3........................... 6,816 July 28................ . 1 ,572 17.......................... 2,950 10........................... '6,959 Aug. 25 . ... 1 ,792 24........................... 3,254 27 17........................... '6,678 Sept. 29........................ 1 ,611 31........................... 2,776 24........................... '6,681 1968 31........................... '6,183 Oct. 27.......................... 1 ,719 June 7......................... 3,059 Nov. 24 . . 1 ,697 14........................... 2,991 4,157 6,688 Dec. 29.......................... 1 ,345 21........................... 3,215 3>........................ 4,092 “ 14........6..,..8..3..6........... 28........................... 3,166 10........................... 4'289 21............................ 6’967 17........................... 4,367 28............................ 7,025 24........................... 4'516 31........................... 4’259 1 Break in series; sec 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 arc 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. □ OCTOBER 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.1’ Mar. June Sept. Dec. Mar.p Europe: Austria............................................ 2 2 2 2 2 8 9 7 8 20 Belgium-Luxembourg *......................... 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 99 111 128 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............................................. I 1 4 3 3 4 6 Other Western Europe 1....................... 5 5 3 4 4 12 13 13 14 12 Eastern Europe..................................... I 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 1 I 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 1 1 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 2,94! 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

OCTOBER 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 Payable Payable Payable Total do i l n la rs for i e n i gn Total do i l n la rs Deposits with currencies banks abroad Other in reporter’s name 1963—Dec.................................................................................... 626 479 148 2,188 I 778 199 211 1964—Mar.................................................................................... 631 475 156 2,407 1,887 239 282 June................................................................................... 622 471 151 2'482 2 000 220 262 June1................................................................................. 585 441 144 2,430 1,952 219 260 Sept.................................................................................... 650 498 152 2,719 2,168 249 302 Dec 695 553 141 2,776 2,306 189 281 Dec.2................................................................................. 700 556 144 2,853 2 338 205 310 1965—Mar.................................................................................... 695 531 165 2,612 2 147 189 277 June................................................................................... 740 568 172 2,411 1,966 198 248 Sept................................................................................... 779 585 195 2,406 1,949 190 267 Dec.................................................................................... 807 600 207 2’397 2 000 167 229 Dec.2............................................................................... 810 600 210 2,299 1 911 166 222 1966—Mar................................................................................... 849 614 235 2,473 2 033 211 229 June................................................................................... 894 657 237 2*469 2 063 19! 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 J 10 199 275 Sept................................................................................... 1 ,349 1 ,025 324 2,555 2,116 192 246 Dec.................................................................................... 1,367 1 ,023 343 2*941 2,523 201 216 1968—Mar?’................................................................................ I ,308 949 359 3,284 2,849 209 226 1 Includes reports from firms having $500,000 or more of liabilities or 2 Data differ from that shown for Dec. in line above because of changes of claims; for previous 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 Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a e h t r i e i n r c a Japan O A t s h i e a r Africa o A th ll e r 1964—Dec......................... 107 1 081 56 116 190 215 73 137 89 98 91 15 1965—Mar........................ 115 1,075 35 121 203 220 74 137 81 96 91 18 June....................... 110 1 ^081 31 118 208 221 70 144 85 96 91 17 Sept........................ 120 1,101 31 116 230 217 74 138 89 96 91 18 Dec............... 136 1 169 31 112 233 209 69 196 98 114 89 17 Dec.1.............. 147 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar........................ 176 1,156 27 124 239 208 61 206 98 87 87 19 June....................... 188 1,207 27 167 251 205 61 217 90 90 86 14 Sept........................ 249 1 '235 23 174 267 202 64 207 102 91 90 14 Dec......................... 329 1,256 27 198 272 203 56 212 95 93 87 13 1967—Mar........................ 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 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.”..................... 572 1,501 36 259 320 206 54 268 128 127 84 19 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-86 GOLD RESERVES □ OCTOBER 1968 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ End of mated Mone­ United mated Afghan­ Argen­ Aus­ Aus­ Bel­ period total tary States rest of istan tina tralia tria gium Brazil Burma Canada Chile world1 Fund world 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 i,O26 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—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 1,110 45 Dec................ 41,600 2,682 12,065 26,855 33 84 231 701 1,480 45 84 1 ,015 45 1968—Jan................. 2,684 12,003 ............. 33 84 233 701 1,460 45 84 1 ,025 45 Feb................ 2,699 11,900 33 84 234 701 1 ,454 45 84 1 ,026 42 Mar............... 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 1 ,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 94 259 714 1 ,518 45 84 926 45 Aug............... 2,230 10,681 ............3..1 ..........2..6..0 714 1 ,518 ............8..4 926 45 Ger- E p n er d i o o d f lo C m o b ­ ia D m e ar n k ­ F la i n n d ­ France m F a e n d y , , Greece India Iran 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—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 Aug............... 32 113 45 4,366 4,421 140 243 158 209 81 46 2,730 355 E pe n r d i o o d f Kuwait a L n e o b n - Libya Ma si l a ay- M c e o xi- Mo c r o oc- N l e a t n h 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 l 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 31 53 57 28 497 78 1964........................ 48 183 17 7 169 34 1,688 31 53 67 23 523 78 1965.......................... 52 182 68 2 158 21 1 ,756 31 53 67 38 576 73 1966.......................... 67 193 68 1 109 21 1,730 18 53 65 44 643 69 1967—Aug............... 89 193 68 2 157 21 1 ,731 18 53 20 56 686 69 Sept............... 89 193 68 6 155 21 1 ,731 18 53 20 57 690 69 Oct................ 89 193 68 10 155 21 1 ,731 18 53 20 58 692 69 Nov............... 89 193 68 24 164 21 1 ,731 18 53 20 59 698 69 Dec................ 136 193 68 31 166 21 1 ,711 18 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 18 53 20 63 711 69 Mar............... 125 267 85 42 156 21 1 ,654 18 54 20 64 711 69 Apr................ 127 267 85 52 156 21 1 ,654 18 54 20 65 711 69 May.............. 131 267 85 66 156 21 1 ,655 18 54 20 67 715 69 June.............. 133 288 85 66 165 21 1 ,697 24 54 20 67 716 94 July................ 122 288 85 66 21 1,697 24 54 20 69 94 Aug................ 116 288 85 .............. 21 1 ,697 24 54 20 61 119 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OCTOBER 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 i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t i l r e . ­ ments 4 1961. 298 316 180 2,560 43 104 139 174 2,268 180 401 6 115 1962. 499 446 181 2,667 43 104 140 174 2,582 180 401 4 -50 1963. 630 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 1964. 574 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 1965. 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 1966. 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 1967--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 Mar................... 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 40! 22 -326 June.................. 975 785 225 2,656 81 89 97 93 1 ,474 133 403 23 -333 July................... 1,003 785 '225 2,600 81 89 97 93 133 403 32 -274 Aug................... 1 ,016 785 225 2,629 .............89 97 93 403 32 -269 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 < 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 produc­ tion 1 A So fr u i t c h 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 a i g c u a a ­ Co b l i o a m­ India P p h i i n l e ip s ­ t A ra u l s ia ­ ot A h l e l r 1960............................. 1,175.0 748.4 19.6 30.8 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............................. 1'410,0 1,068.7 18.0 26.7 5.4 53.4 103,7 6.4 6.2 9.0 3.4 17.5 28.4 63.2 1967—July.................. 88.9 8.4 .4 .7 2.4 Aug................... 90.5 8,3 .4 .8 2.1 Sept.................. 90.5 8.0 .7 .8 2.9 24.2 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 2.8 24.6 2.2 1968—Jan.................... 90.3 7,7 .5 .9 2.0 Feb................... 90.0 7.7 . 5 .7 2.0 91 .8 8.3 .7 2.8 Apr................... 91.8 8.2 .7 May........... 93.1 8.4 .7 91 .5 7.5 .6 July.................. 90.5 7.4 1 Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-88 MONEY RATES □ OCTOBER 1968 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Sept. 30, 1967 Rate Country 1967 1968 as of Sept. 30, Per Month 1968 cent effective Oct. Nov. Dec. Jan. Feb. Mar. Apr, May June July Aug. Sept. Argentina.............................. 6.0 Dec. 1957 6 0 Austria............................. 4.25 Apr. 1967 3.75 3 75 Belgium . . . 4,25 Sept. 1967 4,00 3.75 3 *75 Brazil............................. 12,0 Jan, 1965 120 Burma................................... 4.0 Feb. 1962 4 0 Canada 1............................... 5.0 Sept. 1967 6.0 7.0 7.5 26.5 6.0 6 0 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 70 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 50 Honduras 4........................... 3.0 Jan. 1962 3*0 Iceland.................................. 9.0 Jan. 1966 90 India...................................... 6.0 Feb. 1965 5 0 5 0 Indonesia,............................. 9.0 Aug, 1963 90 Iran........................................ 5.0 Aug. 1966 5 0 Ireland................................... 5.53 Sept. 1967 5.94 7.75 7.78 7.69 7.62 7.39 7.38 7.31 7.44 7.25 7 25 Israel...................................... 6.0 Feb. 1955 6 0 Italy. .................................. 3.5 June 1958 3 5 Jamaica............................... 5.0 May 1967 6.0 5.0 50 Japan.................................... 5.84 Sept. 1967 6.21 5.84 5 ’ 84 Korea.................................... 28.0 Dec. 1965 28 0 Mexico................................ 4 5 45 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 Sept. 1965 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 May 1967 11.9 1 1 9 Thailand............................... 5.0 Oct. 1959 5 0 Tunisia.................................. 5.0 Sept. 1966 50 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 <•8.0 7.5 7.0 7 0 Venezuela............................. 4.5 Dec. 1960 4.5 i On June 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent 2 Effective July 2 the rate was 7.0 per cent. for rediscounts in excess of an individual bank’s quota; 3 Beginning with Apr. I, 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 basic 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 are 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, bonds, 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

OCTOBER 1968 □ MONEY RATES; ARBITRAGE A-89 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Germany, Netherlands Switzer­ Fed. Rep. of land Month 3 T m r b e o i a l n s ls t u , h r s y 1 D m a o d y n a - y e t y o 2 ­ 3 B a a m a c n n c o c k e n e p e s t r t h , ­ s s ’ 3 T r m b e i a o ll s n s u t , h ry s D m a d o y a n - y e t o y ­ a B d ll e a o p n w o k o n a e s n r it s c s * e D m a o d y n a - y e t y o 3 ­ T 6 r d b e 0 a i a y - l s l 9 s s u 0 , 4 r y D m a o d y n a - e y t y o 5 ­ 3 T m r b e i o a ll s 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 i c a v o t a e u te n t 1965—Dec............. 4.45 4.03 5.91 5.48 4.79 4.00 4.48 3.88 4.67 4.29 3.47 3.00 1966—Dec............. 5.05 4.71 6.94 6.64 6.00 5.00 5.68 4.75 5.85 4.90 3.68 4.00 1967—Aug............. 4.33 4.16 5.53 5.32 4.56 3.50 4.46 2.75 2.45 4.49 3.83 4.00 Sept............ 4.50 4.24 5.54 5.34 4.58 3.50 4.34 2.75 3.12 4.48 3.69 4.00 Oct............. 4.91 4.82 5.79 5.60 4.81 3.71 4.48 2.75 2.06 4.50 4.60 3,75 Nov............ 5.15 4.69 6.88 6.55 5.80 4.90 4.67 2.75 2.16 4.50 3.23 3.75 Dec............. 5.80 5.67 7.78 7.52 6.83 6.00 4.76 2.75 2.77 4.51 4.05 3.75 1968—Jan.............. 6.01 5.32 7.78 7.48 6.85 6.00 5.00 2.75 2.26 4.33 3.12 3.75 Feb............. 6.69 6.38 7.75 7.45 6.86 6.00 4.77 2.75 2.85 4.19 3.65 3.75 Mar............ 6.93 6.76 7.65 7.25 6.72 5.81 5.07 2.75 2.69 4.34 3.10 3.75 Apr............. 6.91 6.85 7.42 7.08 6.48 5.50 5.12 2.75 2.72 4.33 3.49 3.75 May........... 6.96 6.75 7.42 7.15 6.51 5.50 5.66 2.75 2.99 4.43 4.53 3.75 June........... 6.75 6.35 7.54 7.21 6.42 5.50 5.76 2.75 2.68 4.56 4.69 3.75 July............ 6.21 5.68 7.58 7.15 6.51 5.50 6.00 2.75 2.43 4.57 4.40 3.75 Aug............ 5.75 5.04 7.44 6.95 6.43 5.50 ................ 2.75 3.07 4.47 3.81 3.75 1 Based on average yield of weekly tenders during month. s Beginning with Oct. 1968 Bulletin all data shown in this column 2 Based on weekly averages of daily closing rates. are monthly averages based on daily quotations. 3 4 R R a a t t e e s in h o e w ff n ec i t s a o t n e n p d r iv o a f t m e s o e n c t u h r . ities. Se N cti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m t e io n n t a to n d B a b n a k c i k ng d a a n ta d , M se o e n e “ ta In ry te r S n ta a t t i i s o t n ic a s l , 1 F 9 i 6 n 2 a . nce,’ 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 ( i + sc ) o u o n r t inc N en e t t i ve Canada d ( i + sc ) o u o n r t inc N en e t t i ve Kingdom Spread (-) on (favor Spread (-) on (favor (a U dj . . S t . o U St n a i t t e e s d (fa o v f o r f p o o rw un ar d d Lon o d f o n) qu A ot s e d A U dj . . S . t o U St n a i t t e e s d (fa o v f o r C f a o n rw ad a i r a d n Can o a f d a) quotation London) in quotation Canada) dollars basis) Canada basis 1968 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 Sept. 6.............. 6.78 5.20 1.58 -2,81 -1.23 5.59 5.44 5.20 + .24 -.89 -.65 13............. 6.69 5,25 1.44 -2.46 -1.02 5.59 5.42 5.25 + .17 -.79 -.62 20.............. 6.46 5.13 1.33 -2.03 -.70 5.58 5,43 5.13 + .30 -.97 -.67 27.............. 6.49 5.06 1.43 -1.71 -.28 5.70 5.54 5.06 + .48 -.86 -.38 Oct. 4............. 6.36 5.19 1.17 -1.38 -.21 5.64 5.49 5.19 + .30 -.65 -.35 Note.—Treasury bids: All rates arc 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 I, p. 1257, and to Table 2, p. 1460, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-90 MONEY RATES □ OCTOBER 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 14.325 429,553 1967-—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 ................1..11.85 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 1 10.84 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 Sept................................................. .28469 ................1..10.97 3.8702 1.9916 93.182 16.674 13.321 23.763 Period F (f r r a a n n c c e ) G (d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e ) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n ( M do s a i l l a l a a y r ­ ) M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ 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 25.007 816.596 279.30 .16014 .27598 32.538 8.0056 27.630 1967. 20.323 25.084 13.255 275,04 .16022 .27613 32.519 8.0056 27.759 1967-—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 25.119 13.268 238.92 .16059 .27604 32.556 8.0056 27,635 June................................................. 20.107 25.032 13.228 238.46 .16048 .27636 32.509 8.0056 27,620 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 Sept.................................................. 20.106 25.166 13.233 238.74 .16069 .27839 32.518 8.0056 27.504 Period (pou N n e d w ) Zeal ( a d n o d llar) N (k o r r o w n a e y ) (e P s o g c r a u t l d u o ­ ) ( 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 r e o d n e a n ) ( S e f r r w l a a 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 1.6663 19,414 23.152 279.21 1965. 276.82 13.985 3.4829 139.27 1.6662 19,386 23.106 279.59 1966. 276.54 13.984 3.4825 139,13 1.6651 19,358 23.114 279.30 1967. H276.69 12131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 1967-—Sept.................................................. 137.81 13.978 3,4755 138.66 1.6640 19.381 23.027 278.37 Oct................................................... 137.78 13.979 3.4736 138.64 1.6635 19.341 23,035 278.32 Nov................................................. 128,28 13.985 3.4654 139.05 ’1.5831 19.326 23.146 9266.18 Dec................................................... 111.95 13.996 3.4817 139.84 1.4236 19.341 23.158 240.63 1968--Jan................................................... 112.09 13.997 3.4861 140.00 1.4236 19,366 23.017 240.91 Feb................................................... 112.10 14.001 3,4866 140.01 1.4231 19.361 22.994 240.92 Mar.................................................. 6111.66 14.005 3.4854 N39.46 1.4264 19.345 23.085 6239.97 Apr.................................................. 111.75 14.000 3.4891 139.58 1.4283 19.338 23.049 240.18 May.................................................. 111.17 14.000 3.4874 138.85 1.4283 19.354 23,118 238.92 June................................................. 110.95 14.000 3.4867 138.58 1.4279 19.352 23.233 238.46 July.................................................. 111.20 14.000 3.4863 138.89 1.4282 19.351 23.265 239.00 Aug.................................................. 111.26 13.999 3.4863 138.96 1.4284 19.369 23.223 239,11 Sept.................................................. 111.08 13.997 3.4846 138.74 1.4282 19.371 23.251 238,74 i A new markka, equal to 100 old markkaa, was introduced on Jan. 1, 9 Quotations not available Nov. 21, 1967. 1963. 10 Quotations not available Nov. 21-27, 1967. 2 Based on quotations through Feb. 11, 1966. 11 Based on quotations through July 7, 1967. 3 Effective Feb. 14, 1966, Australia adopted the decimal currency 12 Effective July 10, 1967, New Zealand adopted the decimal currency system. The new unit, the dollar, replaces the pound and consists of 100 system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. cents, equivalent to 10 shillings or one-half the former pound. « Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 to 4.2 markkaa per U. S. dollar. Quotation not available Oct. 12. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, 5 Quotations not available Nov. 21-24, 1967. the following countries devalued their currency in relation to the U.S. 6 Quotations not available Mar. 15, 1968. dollar; Ceylon, Denmark, Ireland, New Zealand, and Spain. The averages 7 Effective Jan. 1, 1963, the franc again became the French monetary for Nov. 1967 reflect the extent of the devaluation. unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. Averages of certified noon buying rates in New York for cable transfers. a Effective June 6, 1966, the Indian rupee was devalued from 4.7 6 to For description of rales 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

OCTOBER 1968 □ STOCK MARKET CREDIT A-91 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 '101 In subscription accounts........................................................................... 104 105 In cash accounts............................................................................. 2,673 15 2,690 In other (including U.S. Govt, securities)............................................... 240 2 241 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—Total2.......................................................................... 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................................................................ *5,565 46 c5,611 In free credit balances in cash accounts.................................................. c2,687 22 *2,709 In free credit balances in margin accounts............................................. c728 3 *731 In credit balances in short accounts...................................................... 1,064 7 1,072 In other net credit balances...................................................................... 1,086 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 individual investment and trading accounts............................................ *99 3 *102 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 ,736 37 C1 ,773 AU other credit balances............................................................................ C1,014 16 eJ ,030 Total...................................................................................... *19,250 *390 *19,640 Memorandum: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of U.S. Govt, or its agencies.................. 61 2 63 Entirely by bonds other than convertible bonds and U.S. Govt, securities............................................................................ 30 30 By nonexempt securities or mixed collateral................................. *2,805 13 *2,818 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. .. c192 67 c259 Number of firms.......................................................................................... 346 19 365 J 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. 3 Excluding subordinated indebtedness included in the item above, “Credit balances and money borrowed, etc.” Note—Details may not add to totals because of rounding. This table was published in the Sept. 1968 Bulletin, p. A-93. Howerever some of the figures under Credit Bal­ ances and Memorandum were incorrect. These errors have been corrected, and this table should replace the earlier one. Data for the period 1960-67 (for member firms of the New York Stock Exchange) can be found on p. A-92 of the Sept. 1968 Bulletin. 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 Jerome W. Shay, Assistant General Counsel Frederic Solomon, Director Brenton C. Leavitt, Deputy Director Frederick R. Dahl, Assistant Director DIVISION OF RESEARCH AND STATISTICS Jack M. Egertson, Assistant Director Daniel H. Brill, Director Janet O. Hart, Assistant Director 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 Robert Solomon, Director John Kakalec, Controller Robert L. Sammons, Associate Director OFFICE OF DEFENSE PLANNING John E. Reynolds, Associate Director John F. L. Ghiardi, Adviser Innis D. Harris, Coordinator A. B. Hersey, Adviser Reed J. Irvine, Adviser DIVISION OF DATA PROCESSING Samuel I. Katz, Adviser Lawrence H. Byrne, Jr., Director Ralph C. Wood, Adviser Lee W. Langham, Assistant Director A-92 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-93 FEDERAL OPEN MARKET COMMITTEE Wm. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer 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-94 FEDERAL RESERVE BULLETIN □ OCTOBER 1968 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Deputy Chairman First Vice President in charge of branch Zip code Boston.................... ...02106 Howard W. Johnson 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 Halgrcn 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., 2055], Where a charge is indicated, remittance should ac­ company request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic re­ leases, see pp. 2166-69 of the December 1967 Bulletin. (Stamps and coupons not accepted) THE FEDERAL RESERVE SYSTEM—PURPOSES AND Related Items. 1962. 64 pp. $.50. Sec, 11. Cur­ FUNCTIONS. 1963. 298 pp. rency. 1963. 11 pp. $.35. Sec. 12. Money Rates and Securities Markets. 1966. 182 pp. $.65. ANNUAL REPORT. Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ FEDERAL RESERVE BULLETIN. Monthly. $6.00 per national Finance. 1962. 92 pp. $.65. Sec. 16 annum or $.60 a copy in the United States and (New). Consumer Credit. 1965. 103 pp. $.65. its possessions, Bolivia, Canada, Chile, Colom­ BANK MERGERS & THE REGULATORY AGENCIES: bia, Costa Rica, Cuba, Dominican Republic, APPLICATION OF THE BANK MERGER ACT OF Ecuador, Guatemala, Haiti, Republic of Hon­ 1960. 1964. 260 pp. $1.00 a copy; 10 or more duras, Mexico, Nicaragua, Panama, Paraguay, sent to one address, $.85 each. Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue sent to one address, $5.00 BANKING MARKET STRUCTURE & PERFORMANCE per annum or $.50 each. Elsewhere, $7.00 per IN METROPOLITAN AREAS: A STATISTICAL annum or $.70 a copy. STUDY OF FACTORS AFFECTING RATES ON BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or FEDERAL RESERVE CHART BOOK ON FINANCIAL more sent to one address, $.40 each. AND BUSINESS STATISTICS. Monthly. Annual subscription includes one issue of Historical FARM DEBT. Data from the 1960 Sample Survey Chart Book. $6.00 per annum or $.60 a copy in of Agriculture. 1964. 221 pp. $1.00 a copy; 10 the United States and the countries listed above; or more sent to one address, $.85 each. 10 or more of same issue sent to one address, MERCHANT AND DEALER CREDIT IN AGRICUL­ $.50 each. Elsewhere, $7.00 per annum or $.70 TURE. 1966. 109 pp. $1.00 a copy; 10 or more a copy. sent to one address, $.85 each, HISTORICAL CHART BOOK. Issued annually in Sept. MONETARY THEORY AND POLICY: A BIBLIOGRA­ Subscription to monthly chart book includes PHY. Part I—Domestic Aspects. 137 pp. $1.00 one issue. $.60 a copy in the United States and a copy; 10 or more sent to one address, $.85 countries listed above; 10 or more sent to one each. address, $.50 each. Elsewhere, $.70 a copy. REGULATIONS OF THE BOARD OF GOVERNORS OF FLOW OF FUNDS IN THE UNITED STATES, 1939­ THE FEDERAL RESERVE SYSTEM. 53. 1955. 390 pp. $2.75. RULES OF ORGANIZATION AND PROCEDURE­ DEBITS AND CLEARING STATISTICS AND THEIR BOARD OF GOVERNORS OF THE FEDERAL RE­ USE. 1959. 144 pp. $1.00 a copy; 10 or more SERVE SYSTEM. 1967. 16 pp. sent to one address, $.85 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF THE FEDERAL FUNDS MARKET. 1959. Ill pp. GOVERNORS, as of June 30, 1967. $2.50. $1.00 a copy; 10 or more sent to one address, TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 $.85 each. a copy; 10 or more sent to one address, $.85 INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. each. 172 pp. $1.00 a copy; 10 or more sent to one U.S. TREASURY ADVANCE REFUNDING, JUNE address, $.85 each. 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 THE FEDERAL RESERVE ACT, as amended through or more sent to one address, $.40 each. Nov. 5, 1966, with an appendix containing pro­ SURVEY OF FINANCIAL CHARACTERISTICS OF visions of certain other statutes affecting the CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or Federal Reserve System. 353 pp. $1.25. more sent to one address, $.85 each. SUPPLEMENT TO BANKING AND MONETARY STA­ THE PERFORMANCE OF BANK HOLDING COM­ TISTICS. Sec. 1. Banks and the Monetary Sys­ PANIES. 1967. 29 pp. $.25 a copy; 10 or more tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. sent to one address, $.20 each. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. INTEREST RATE EXPECTATIONS. 1968. 83 pp. $.35. Sec. 9. Federal Reserve Banks. 1965. 36 $.50 a copy; 10 or more sent to one address, pp. $.35. Sec. 10. Member Bank Reserves and $.40 each. A-95 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-96 FEDERAL RESERVE BULLETIN □ OCTOBER 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: A TECHNIQUE FOR FORECASTING DEFENSE EX­ EVOLUTION OF THE ROLE AND FUNCTIONING PENDITURES, by Harvey Galper and Edward OF THE DISCOUNT MECHANISM. 1968. 65 pp. Gramlich, Oct. 1968. A STUDY OF THE MARKET FOR FEDERAL FUNDS. Printed in full in the Bulletin. 1968. 47 pp. (Reprints available as shown in following list.) THE SECONDARY MARKET FOR NEGOTIABLE REPRINTS CERTIFICATES OF DEPOSIT. 1968. 89 pp. (From Federal Reserve Bulletin unless preceded THE DISCOUNT MECHANISM IN LEADING IN­ by an asterisk.) DUSTRIAL COUNTRIES SINCE WORLD WAR ADJUSTMENT FOR SEASONAL VARIATION. Descrip­ II. 1968. 216 pp. tion of method used by Board in adjusting eco­ RESERVE ADJUSTMENTS OF THE EIGHT MAJOR nomic data for seasonal variations. June 1941. NEW YORK CITY BANKS DURING 1966. 1968. 11 PP- 29 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. DISCOUNT POLICY AND OPEN MARKET OPERA­ Feb. 1958. 12 pp. TIONS. 1968. 23 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by THE REDESIGNED DISCOUNT MECHANISM AND Stephen H. Axilrod. Oct. 1961. 17 pp. THE MONEY MARKET. 1968. 29 pp. SEASONALLY ADJUSTED SERIES FOR BANK SUMMARY OF THE ISSUES RAISED AT THE ACA­ CREDIT. July 1962. 6 pp. DEMIC SEMINAR ON DISCOUNTING. 1968. INTEREST RATES AND MONETARY POLICY, Staff 16 pp. Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. A REVIEW OF RECENT ACADEMIC LITERATURE RECENT CHANGES IN LIQUIDITY, Staff Paper by ON THE DISCOUNT MECHANISM. 1968. Daniel H. Brill. June 1963. 10 pp. 40 pp. MEASURES OF MEMBER BANK RESERVES. July STAFF ECONOMIC STUDIES 1963. 14 pp. Studies and papers on economic and financial sub­ MEASURING AND ANALYZING ECONOMIC GROWTH, jects that are of general interest in the field of Staff Paper by Clayton Gehman. Aug. 1963. economic research. 14 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. Summaries only printed in the Bulletin. 1963. 8 pp. (Limited supply of mimeographed copies of full ECONOMIC CHANGE AND ECONOMIC ANALYSIS, text available upon request for single copies.) Staff Paper by Frank R. Garfield. Sept. 1963. MEASURES OF INDUSTRIAL PRODUCTION AND 17 pp- FINAL DEMAND, by Clayton Gehman and Cor­ THE OPEN MARKET POLICY PROCESS. Oct. 1963. nelia Motheral. Jan. 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-97 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. THE ECONOMIC PAUSE IN WESTERN EUROPE. MEASURES OF BANKING STRUCTURE AND COM­ Oct. 1967. 17 pp. PETITION. Sept. 1965. 11 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC TIME DEPOSITS IN MONETARY ANALYSIS, Staff MODEL, Staff Economic Study by Frank de Economic Study by Lyle E. Gramley and Sam­ Leeuw and Edward Gramlich. Jan. 1968. 30 pp. uel B. Chase, Jr. Oct. 1965. 25 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ JULY-OCT. 1967. Jan. 1968. 20 pp. ING WORLD, Staff Paper by Frank R. Garfield. RECENT CREDIT AND MONETARY DEVELOPMENTS. Nov. 1965. 15 pp. ' Feb. 1968. 11 pp. RESEARCH ON BANKING STRUCTURE AND PER­ THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. FORMANCE, Staff Economic Study by Tynan 1968. 7 pp. Smith. Apr. 1966. 11 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN­ COMMERCIAL BANK LIQUIDITY, Staff Economic CIAL INSTITUTIONS. Mar. 1968. 9 pp. Study by James Pierce. Aug. 1966. 9 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN REVISION OF WEEKLY REPORTING MEMBER BANK 1960-67. Apr. 1968. 23 pp. SERIES. Aug. 1966. 4 pp. QUARTERLY SURVEY OF CHANGES IN BANK LEND­ TOWARD UNDERSTANDING OF THE WHOLE DE­ ING PRACTICES. Apr. 1968. 6 pp. VELOPING ECONOMIC SITUATION, Staff Eco­ RECENT CAPITAL MARKET DEVELOPMENTS. May nomic Study by Frank R. Garfield. Nov. 1966. 1968. 11 pp. 14 pp. BANKING AND MONETARY STATISTICS, 1967. A REVISED INDEX OF MANUFACTURING CAPACITY, Selected series of banking and monetary statis­ Staff Economic Study by Frank de Leeuw with tics for 1967 only. Mar. and May 1968. 20 pp. Frank E. Hopkins and Michael D. Sherman. Nov. 1966. 11 pp. CONSUMER INSTALMENT CREDIT. June 1968. 13 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN MARGIN ACCOUNT CREDIT. June 1968. 12 pp. U.S. CAPITAL MARKETS, Staff Economic Study by Daniel H. Brill, with Ann P. Ulrey. Jan. REVISION OF MONEY SUPPLY SERIES. June 1968. 1967. 14 pp. ' 6 PP- REVISED SERIES ON COMMERCIAL AND INDUS­ RECENT MONETARY AND CREDIT DEVELOP­ TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. MENTS. July 1968. 11 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES MONETARY RESTRAINT AND BORROWING AND FINANCE COMPANIES. Feb. 1967. 5 pp. CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 CONSUMER INSTALMENT CREDIT. Mar. 1967. 12 PP- PP- RECENT CHANGES IN STRUCTURE OF TIME AND SURVEY OF FINANCE COMPANIES, MID-1965. Apr. SAVINGS DEPOSITS. July 1968. 20 pp. 1967. 26 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. MONETARY POLICY AND ECONOMIC ACTIVITY: A 4 PP- POSTWAR REVIEW. May 1967. 22 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. MONETARY POLICY AND THE RESIDENTIAL MORT­ 1968. 18 pp. GAGE MARKET. May 1967. 13 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ BANK FINANCING OF AGRICULTURE. June 1967. CHANGE OPERATIONS. Sept. 1968. 22 pp. 23 pp. HOW DOES MONETARY POLICY AFFECT THE EVIDENCE ON CONCENTRATION IN BANKING ECONOMY? Staff Economic Study by Maurice MARKETS AND INTEREST RATES, Staff Eco­ Mann. Oct. 1968. 12 pp. nomic Study by Almarin Phillips. June 1967. BUSINESS FINANCING BY BUSINESS FINANCE 11 PP- COMPANIES. Oct. 1968. 13 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 19—A hguorht 4—A segap ot era secnerefeR( Acceptances, bankers’, 14, 31, 35 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment Arbitrage, 89 of personal loans, 23 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 18 Banks, by classes, 19, 24, 26, 35 Banks, by classes, 11, 19, 25, 28, 35 Banks and the monetary system, 18 Federal Reserve Banks, 12, 83 Corporate, current, 47 Postal savings, 18 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Automobiles: Discount rates, 9, 88 Consumer instalment credit, 52, 53, 54 Discounts and advances by Reserve Banks, 4, 12, 15 Production index, 56, 57 Dividends, corporate, 46, 47 Dollar assets, foreign, 73, 78 Bankers’ balances, 25, 27 (See also Foreign liabilities and claims) Earnings and hours, manufacturing industries, 63 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, 28, 83 Deposits at, for payment of personal loans, 23 Foreign exchange rates, 90 Number, by classes, 19 Foreign liabilities and claims: Real estate mortgages held, by type, 48 Banks, 74, 75, 77, 79, 81, 83 Commercial paper, 31, 35 Nonbanking concerns, 84 Condition statements (See Assets and liabilities) Foreign trade, 71 Construction, 60, 61 Consumer credit: Gold: Instalment credit, 52, 53, 54, 55 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 Stock, 4, 18, 73 Security issues, 44, 45 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, 91 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-98 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A-99 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 Savings and loan assns., 36, 41, 49 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, 91 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 Money rates (See Interest rates) Treasury deposits, 4, 12, 38 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: National banks, 21, 23 Commercial bank holdings, 25, 28 National income, 66, 67 Consolidated condition statement, 18 National security expenditures, 39, 66 Member bank holdings, 17 Nonmember banks, 21, 23, 24, 25 Treasury deposits at Federal Reserve Banks, 4, 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 19—A hguorht 4—A segap ot era secnerefeR( Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES ☆ (o THE FEDERAL RESERVE SYSTEM ^) * 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