Federal Reserve Bulletin, 1969-04

FEDERAL RESERVE BULLETIN APRIL 1969 BOARD OF GOVERNORS □ THE FEDERAL RESERVE SYSTEM □ WASHINGTON, D.C. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5,00 for 12 months, The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 4 □ VOLUME 55 □ APRIL 1969 291 t Recent Trends in the U.S. Balance of Payments CONTENTS 309 4 Staff Economic Studies: Summary 311 \ Quarterly Survey of Changes in Bank Lending Practices 316\ Balance of Payments—Revised Guidelines for Banks and Non bank Financial Institutions 325 Credit Extended by Banks to Real Estate Mortgage Lenders 326 Statements to Congress 345 Record of Policy Actions of the Federal Open Market Committee 353 Law Department 397 Announcements 398 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 93 Board of Governors and Staff A 94 Open Market Committee and Staff; Federal Advisory Council A 95 Federal Reserve Banks and Branches A 96 Federal Reserve Board Publications A 99 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony COMMITTEE Daniel H. Brill Robert C. Holland Robert Solomon Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Recent Trends in the U.S. Balance of Payments THE U.S. PAYMENTS BALANCE improved substantially in 1968 as measured by the summary indicators. At the same time, the trends that have been evident for well over a year—a weakened trade balance, lower outflows of U.S. capital, and enlarged in­ flows of foreign capital—accelerated greatly. Inflation of incomes and demand in the United States increased imports sharply and the trade surplus virtually disappeared, while stringent controls on U.S. capital flows, restrictive monetary policy, and other factors resulted in an improvement in the capital accounts that was considerably greater than the worsening on current account. A question raised by these developments is whether the struc­ ture of the U.S. balance of payments in the years ahead may involve a smaller trade surplus and a smaller net outflow of capital than was formerly regarded as normal. Whatever the an­ swer to this question, it is generally agreed that net capital out­ flows are likely to increase from their unusually low levels in 1968 and that the current-account surplus must also increase. While the structure of the U.S. balance of payments in 1968 —and in early 1969—could not be regarded as satisfactory, one consequence of the improvement in the over-all balance—and of the pattern of financing—has been a reduction in foreign official reserves held in the form of dollars. In 1968 U.S. liabilities to foreign reserve holders declined by $0.7 billion, and in the early months of 1969 a further very large decline in these liabilities occurred. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN □ APRIL 1969 OVER-ALL RESULTS It is always hazardous to attempt to sum up in a single num­ ber the results of a complex set of flows such as the interna­ tional transactions of the United States. The difficulties are com­ pounded when the structure of these transactions has changed as much as it has in the past few years. The two standard measures of the over-all balance—the liquidity balance and the balance on the basis of official settlements—have given greatly differ­ ing results and have shown wide fluctuations because of major changes in the composition of U.S. liabilities in these years. One of these changes has been a shift in holdings of foreign official accounts from liquid to nonliquid forms; this tended to reduce the liquidity deficit but did not affect the official settlements meas­ ure. The other is the accelerated accumulation of liquid claims on the United States by commercial banks abroad, reflecting increased deposits by private foreign residents in the Euro-dollar market and their use by U.S. banks; this has tended to reduce U.S. liabilities to foreign official institutions and improve the of­ ficial settlements measure of the balance, without affecting the liquidity measure. Shifts in these volatile asset holdings of foreigners, though significant, can be large and abrupt and at times can overshadow important changes taking place in all other transactions entering the international accounts. One procedure for minimizing these volatile elements, and for attempting to measure changes in the underlying balance of payments position, is to combine official reserve transactions and changes in liabilities to foreign com­ mercial banks (Table 1, item 3; Chart 1, bottom panel). A TABLE 1 MEASURES OF OVER-ALL BALANCE OF INTERNATIONAL TRANSACTIONS In billions of dollars 1960-65 Item average 1966 1967 1968 1. Balance on liquidity basis (financed by de­ crease in CT. S. reserve assets and increase in all liquid liabilities to foreigners)........................... -2.55 -1.36 -3.57 . 16 2. Balance on official reserve transactions basis (financed by decrease in U.S. reserve assets and increase in liquid and nonliquid liabilities to foreign reserve holders)............................... -2.05 .27 -3.40 1.62 3. Adjusted over-all balance.................................. -2.73 -2.76 -4.22 -2.03 Financed by: a. Official reserve transactions................ 2.05 -.27 3.40 -1.62 b. Nonscheduled repayments of U.S. Govt, credits....................................... .35 .43 .01 .27 c. U.K. liquidation of U.S. securities other than Treasury issues ( —).. -.11 .10 -.45 d. Inflow of foreign liquid capital through increase in U.S. liabilities to commercial banks abroad.......... .44 2.70 1.26 3.38 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 293 International transactions in 1968 were dominated by 1 a steep DECLINE IN TRADE BALANCE, more than offset by INFLOWS OF FOREIGN CAPITAL-resulting in OVER-ALL IMPROVEMENT For notes see p. 308. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN □ APRIL 1969 further adjustment is made by including with reserve transac­ tions the prepayment of U.S. Government loans to foreign gov­ ernments, as well as the liquidation of U.S. securities other than Treasury issues held by the U.K. Government. Thus this adjusted over-all measure gives a clearer indication of short-run changes in the underlying situation, although it does not represent an absolute measure of the extent of balance of payments dis­ equilibrium requiring correction. The deepening of the deficit in 1967—no matter how meas­ ured—pointed to the need for stronger efforts for improvement. The merchandise trade balance narrowed abruptly from an an­ nual rate of $4.2 billion in the first three quarters of 1967 to $1.3 billion in the fourth, and the outflow of U.S. private capital rose sharply after mid-1967. New control measures on the out­ flow of U.S. capital were instituted at the beginning of 1968 and had an immediate strong effect, greatly reducing the outflow. The inflow of foreign private capital in various forms, already sub­ stantial in 1967, spurted to an unprecedented rate in 1968. The gain in the capital accounts much more than offset the further fall in the current account, so that all the summary measures of the balance of payments showed a strong recovery from 1967. The conventional measures shifted to surpluses; the adjusted measure also showed a considerable gain, moving to a rate of deficit somewhat below the average for the 1960-66 period. U. S. PRIVATE CAPITAL The outflow of U.S. private capital in 1968 as shown in the balance of payments accounts was $4.9 billion, but a very large part of this outflow was linked to inflows of foreign capital and in fact represented only the use or placement abroad of funds originally borrowed abroad. In Table 3 it can be seen that U.S. corporations borrowed $2.9 billion abroad in 1968, at long term, to be used for financing their foreign affiliates. This foreign bor­ rowing was primarily responsible for reducing the amount of U.S. funds used for direct investments abroad, as derived from the balance of payments data, from $2.6 billion in 1967 to less than $1.0 billion in 1968. The investment directly subject to the control program was reduced by an even greater amount. More­ over, the controls were probably also responsible for most of the year-to-year change in other corporate capital flows, which yielded a further $0.8 billion improvement from 1967. The major item was a reversal of the flow of corporate funds into short-term assets abroad, primarily in the Euro-dollar market. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 295 Very likely some increase in the use of foreign capital by U.S. corporate investors would have occurred in 1968 even without the new program because markets in Europe were already ex­ panding and were receptive to the type of securities offered by U.S. corporations. However, the controls provided an extremely TABLE 2 U.S. BALANCE OF PAYMENTS, 1966-68 Tn billions of dollars Change Item 1966 1967 1968 1966 1967 to to 1967 1968 Exports of goods and services1............... 4—3. 1 4—5—.8 50.2 4-2.6 —+.4—..4 _ Merchandise, excl. military.................. 29.2 30.5 33.4 + 1.3 +2.9 Military sales........................................ 0.8 1.2 1.4 + 0.4 +0.2 Investment income2.............................. 6.3 6.9 7.7 4-0.6 +0.8 Other services........................................ 6.9 7.2 7.7 +0.3 +0.5 Imports of goods and services................. — -38.1 —-—4..1...0 ---4--8--.—2 -2.9 —-—7—..—2— Merchandise, excl. military.................. -25.5 -27.0 -33.3 -1.5 -6.3 Military expenditures............................ -3.7 -4.3 -4.6 -0.6 -0.2 Investment income2............................. -2. 1 -2.3 -2.8 -0.2 -0.5 Other services........................................ -6.7 -7.4 -7.6 -0.7 -0.2 Balance on goods and services1.............. 5. 1 4.8 2.0 -0.3 -2.8 Merchandise, excl. military................. 3.6 3.5 0. 1 -0.2 -3.4 Military sales and expenditures........... -2.9 -3.1 -3. 1 -0.2 -0.0 Investment income2............................. 4.2 4.6 4.9 +0.4 + 0.3 Other services........................................ 0.2 -0.2 0. 1 -0.3 +0.3 Remittances and pensions, net................ -1.0 - 1.3 -1.2 -0.3 +0.1 U.S. Govt, grants3 and capital, net, excl. nonscheduled repayments................. -3.9 -4.2 -4.2 -0.3 -0.0 U.S. private capital, net........................... -4.3 -5.5 -4.9 -1.2 +0.6 Direct investments2.............................. -3.6 -3.0 -2.7 +0.6 +0.3 Foreign securities.................................. -0. 5 -1.3 -1.3 -0.8 -0.0 Claims reported by banks.................... 0.3 -0.5 0.3 -0.7 + 0.7 Other claims.......................................... -0.4 -0.8 -1.1 -0.3 -0.3 Foreign capital, excl. reserve transac­ tions 4 and changes in U.S. liabilities to commercial banks abroad... —1.5 2—.5— —6_.5 --+-- -1--.0- _+—3. 9. Errors and omissions, net. ...................... -.0..—2— ■ - ■ 0. ■— 5 — —-0•—.2 -0.3 +0.3 Ad juste do ver-all balance (Tablet, item 3).. -2.8 -4.2 -2.0 -1.4 + 2.2 Changes in U.S. liabilities to commercial banks abroad............................ 2—.7 —1—.3 3—.4 ----- -1-.4- + 2. 1 Balance financed by official reserve trans­ actions4 and nonscheduled repay­ ments of U.S. Govt, credits...... -0. 1 -3.0 1.3 -2.8 + 4.3 Financed by: Decline (T) in U.S. reserve assets. .. . 0.6 0. 1 -0.9 -0.5 -0.9 (of which gold)................................. (0.6) (1.2) (1.2) (+0.6) (+0.0) Increase <+) in U.S.- reserve liabilities 4 -0.9 2.9 -0.7 +3.8 -3.7 Nonscheduled repayments of U.S. Govt, credits..................................... 0.4 0.0 0.3 -0.4 +0.3 Memo: Balance on liquidity basis.......... -1.4 -3.6 0.2 -2.2 + 3-7 1 Excluding transfers under military grants. 2 Excluding undistributed earnings of subsidiaries. 3 Excluding military grants * “Reserve transactions” shown here for 1966 and 1967 include, in addition to those in­ cluded in the standard classification of official reserve transactions, the U.K. liquidation (—) of U.S. securities other than U.S. Treasury issues. Note.—Details may not add to totals because of rounding. Changes are computed from unrounded data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN □ APRIL 1969 strong impetus to the sale of such issues and to the step-up in borrowing from European banks. The net outflow of corporate funds of all types was thus driven down to less than $0.5 billion for the year, and there was actually an inflow of $0.5 billion in the final quarter of 1968. It seems clear from the still-rising pro­ jections for plant and equipment expenditures abroad, and the probable increased reluctance of U.S. corporations to add heavily to their foreign debt, that a return to larger outflows should be expected. Net purchases by U.S. investors of foreign securities were main­ tained at the relatively high rate of $1.3 billion last year (Table 2). Over half the outflow went to Canada and most of the rest to international institutions and other borrowers exempt from the interest equalization tax (IET). No new issues were sold in the United States by European borrowers. The fast-growing interna­ tional bond market in Europe was able to accommodate a major portion of the issues that a few years ago would normally have been brought out on the U.S. market. The voluntary foreign credit restraint program for banks and other financial institutions also had a share in the 1968 balance of payments improvement. In the case of banks, assets subject to the program were reduced by $612 million in 1968, whereas in 1967 they had increased by $370 million—a net change of about $1 billion. Bank-reported claims as shown in the balance of payments accounts include custody items and other assets not covered by the program, and the net favorable shift including TABLE 3 SELECTED CAPITAL TRANSACTIONS OF U.S. CORPORATIONS’ In millions of dollars Transaction 1966 1967 1968 Net direct-investment capital outflow (—) as shown in balance of payments accounts.......................................................... -3,623 -3,020 -2,743 New issues sold to foreigners (+)2............................................ 594 446 2,190 Other long-term liabilities to foreigners (T)2........................... 180 89 687 Net increase (—) in short-term holdings abroad derived from sales of new issues........................................................ -143 -96 -1,073 Total above: net use (—) of U.S. funds for direct investment abroad................................................................................... -2,992 -2,581 -939 Net increase (—) in other assets abroad............. -294 -508 194 Short-term............................................................................. -182 -219 310 Long-term............................................................................. -112 -289 -116 Net increase (+) in short-term liabilities to foreigners........... 279 278 362 Total net outflow (—)........................................................ -3,007 -2,811 -383 1 Excluding banking and brokerage claims and liabilities. 2 New issues include only securities sold for the purpose of financing direct foreign invest­ ments; other long-term liabilities include some financing for other purposes. Borrowing abroad by foreign affiliates is not included. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 297 such assets was somewhat lower, at about $700 million. Non­ bank financial institutions reduced their covered assets by about $250 million in 1968, compared with an increase of $20 million in 1967. These changes in foreign lending by U.S. financial institutions were influenced by relative interest yields here and abroad as well as by the various restraint programs. Under the credit con­ ditions of 1968, it seems unlikely that there would have been a significant outflow from these institutions in any event. How­ ever, the inflow that did occur was a sharp departure from earlier experience. FOREIGN PRIVATE Probably the most unusual development in the U.S. balance CAPITAL of payments last year was the extraordinary spurt in private foreign capital flows to the United States. As shown in Table 4, the total of such inflows reached $9.7 billion, nearly $6 billion above the amount for 1967. A large part of the inflow in 1968— $2.9 billion—was borrowed by U.S. direct investors and has al­ ready been taken into account above as a factor in the reduced outflow of U.S. funds for direct investments abroad. Another large part of the inflow of foreign capital was the net purchase of $1.9 billion of outstanding U.S. corporate securi­ ties. For equity securities alone the total was $2.0 billion, com­ pared with $0.8 billion in 1967. A number of interrelated explanations have been offered for this dramatic development, including a shift in investment preferences abroad toward U.S. equities, the heightened political tensions in Europe and relative calm and prosperity in the United States, the superior market­ ability of these securities as compared with those available in European markets, and the effective work of selling organiza­ tions. The fact that the inflow continued on a large scale through February of this year supports the supposition that this invest­ ment flow is not a transient phenomenon. A further large inflow of private foreign capital, of quite dif­ ferent character, was the increase in claims on U.S. banks of foreign commercial banks, including foreign branches of U.S. banks. This inflow, which amounted to $3.4 billion in 1968, in­ cluded $2.3 billion from foreign branches representing the use by U.S. banks of part of the funds deposited in the Euro-dollar mar­ ket. The demand for such funds by U.S. banks reflected the tightening of the U.S. money market. The supply of foreign funds to the market was augmented by speculative movements Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN □ APRIL 1969 TABLE 4 INFLOWS OF FOREIGN CAPITAL Excluding official reserves In millions of dollars; decrease in U.S. liabilities (—) Type of capital 1966 1967 1968 Total.................................................................................................... 4,255 3,804 9,844 Private*.............................................................................................. 4,230 3,722 9,653 Nonliquid Direct investments...................................................................... 86 250 363 Purchases of U.S. corporate securities............................... 766 1,348 4,057 New issues to finance U.S. direct foreign investments........ (594) (446) (2,190) Other2.................................................................................... (172) (902) (1,867) Long-term liabilities of U.S. nonbanks................................... 180 89 687 Short-term liabilities of U.S. nonbanks................................... 296 388 666 Other nonliquid U.S. liabilities3.,.1......................................... -7 -28 130 Liquid Foreign commercial banks..................................................... 2,697 1,262 3,382 Other private foreigners........................................................... 212 413 368 International and regional institutions.. ......................................... -352 39 241 Foreign official agencies4................................................................. 378 12 “50 1 Excludes transactions for foreign official accounts and international and regional organizations. 2 Excludes U.K. transactions in U.S. securities other than Treasury issues in 1966 and 1967. 3 Long-term liabilities of U.S. commercial banks, and in 1968, $125 million of U.S. Government nonliquid securities purchased by German commercial banks. 4 Liabilities of the U.S. Government other than reserve liabilities. out of the French franc and sterling, by deposits of funds bor­ rowed abroad by U.S. companies but not yet used for direct investment, and possibly, by the cessation of foreign private gold purchases from the gold pool after March. At times foreign monetary authorities encouraged the flow of funds to the Euro­ dollar market; the German central bank, for example, did so through preferential swap arrangements with German commer­ cial banks. CURRENT Last year the U.S. surplus on transactions in goods and serv­ TRANSACTIONS ices shrank to $2.0 billion and was at an annual rate of less than $1.0 billion in the final quarter. In the past this has been a strong sector of the U.S. balance of payments; in the 1963-65 period the average annual current-account surplus was $7.0 billion, but this fell to $5.0 billion in 1966-67. Several elements of the current account continued to show gains last year. The most important, of course, was exports, which are discussed below. In addition, income from foreign investments, plus fees and royalties from foreign affiliates of U.S. companies, rose by about $1.0 billion, or 12 per cent, from 1967 to 1968, reflecting both the larger amount invested and probably also improved rates of return as business activity picked up abroad. About half of this increase in investment in­ come was offset, however, by larger payments of income to Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 299 foreigners. The rise in U.S. interest rates had an immediate im­ pact because a large part of foreign-owned claims on the United States have short maturities. There was also a small improvement in the balance of tourist expenditures, reflecting primarily a return to the normal level of expenditures in Canada after the surge connected with EXPO-67. Military expenditures continued to be a major drain; though the increase in 1968 was relatively small at about $200 million, the total stood at $4.6 billion. Some of this is recouped through military sales, which gained close to $200 million in the year but totaled only $1.4 billion. Taken together, the nontrade components of the current ac­ count showed a year-to-year improvement of about $0.6 billion, but this was completely overshadowed by a $3.4 billion decline in the balance on merchandise trade. As IMPORTS grow much faster than 2 EXPORTS, trade surplus shrinks Merchandise trade. The major factor in the worsened trade performance last year was the 23 per cent year-to-year increase in the value of imports. Measured from the second half of 1967 to the second half of 1968 the increase was 25 per cent. A year earlier—that is, from the second half of 1966 to the second half of 1967—imports had advanced by about 3 per cent. The com­ parison shows quite clearly the differential results of the sharp cyclical rise that started late in 1967 as compared with the earlier slowdown in domestic economic activity in the first half of 1967. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN □ APRIL 1969 The extraordinarily large rise in imports last year resulted primarily from the very strong expansion in aggregate demand, as the current value of gross national product increased by 9 per cent. Also at work was the continuing long-term shift in the composition of U.S. imports away from food and industrial materials toward more finished goods. It is in the latter category of commodities that foreign suppliers have been most success­ ful in penetrating the domestic market and claiming an increas­ ing share of U.S. expenditures. Even when those imports that increased sharply last year because of strikes or other special circumstances, that is, steel, copper, and cars from Canada, are excluded, the rise in imports from 1967 to 1968 was still exceptionally high—nearly 20 per cent—the greatest year-to-year change since the Korean war. The pace of the import expansion changed within the year. Total imports expanded at an annual rate of 37 per cent from the second half of 1967 to the first half of 1968. This large in­ crease probably reflected not only the great surge of demand and output in the domestic economy but also some apprehension by foreign traders that the United States might impose impediments on imports, widely discussed at that time, and possibly also some initial effects of the first phase of the Kennedy Round of tariff reductions, which became effective on January 1, 1968. The rise in imports slowed to a 10 per cent annual rate between the two halves of the year. After adjustment for high steel and copper imports in the first half, however, the rate of increase from the first to the second half of the year would have been about 15 per cent, much higher than the 9 per cent average an­ nual rate of growth from 1960 to 1967. With imports in 1968 rising nearly 214 times as fast as do­ mestic expenditures, the ratio of imports to GNP reached a peak 3.9 per cent for the year, compared with 3.4 per cent in 1966 and 1967 and 3 per cent in 1960-64. A similar jump in the import/GNP ratio occurred in 1951 during the Korean war as the domestic capacity-utilization rate in manufacturing at that time approached 95 per cent. Last year, however, the strong growth in imports was accompanied by a capacity-utilization rate of only about 85 per cent, though there was a squeeze on manpower as the unemployment rate fell to 3.6 per cent. It appears that imports are not merely the marginal or sup­ plemental items required when domestic supplies are insuffi­ cient to meet demand, but that they have become a permanent Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 301 and increasing share of the total supply in certain product lines. Last year—for the first time—imports of finished manufactures reached about one-half of total imports. In 1960 such goods were only about a third of the total. Long-term uptrends in the import share of domestic expenditures for the major components of finished manufactures^—automobiles, other nonfood consumer goods, and capital equipment—continued in 1968. The greatest rate of increase—60 per cent—was in imports of automobiles, both the U.S. types made in Canada and the foreign types im­ ported from Europe and Japan. Imports of other consumer goods in 1968—even without adjustment up to retail value— accounted for nearly 4 per cent of total domestic expenditures on these items, nearly double the ratio in 1960. The large ad­ vance in such imports can be attributed partly to the attractive style and design of foreign products, and partly to sharp increases in domestic demand and prices. The 20 per cent increase in purchases of foreign capital equipment in 1968 was nearly triple the rate of increase in total domestic expenditures for producers’ durables. The share of im­ ports in these total capital outlays was about 5.5 per cent in TABLE 5 U.S. IMPORTS OF PRINCIPAL COMMODITIES, BY AREAS Percentage distribution unless otherwise indicated Major industrial countries Total all countries Western All Commodity groups (billions Europe other of Total Canada Japan countries dollars) U.K. Other Total imports 1 1965 21.5 63 23 7 22 11 37 1966 25.5 66 24 7 23 12 34 1967 26.8 68 26 6 24 II 32 1968 33.1 70 27 6 24 12 30 Foods and industrial materials 1965 14.9 52 26 4 15 7 48 1966 16.6 53 25 4 16 8 47 1967 16.4 55 26 4 17 7 45 1968 19.3 57 26 5 18 8 43 Iron and steel 1965 1.3 97 8 7 40 42 3 1966 1.3 96 9 7 36 44 4 1967 1.4 96 9 7 40 41 4 1968 2.2 95 10 7 37 40 5 Capital goods, automotive vehicles and parts, and other nonfood consumer goods 1965 5.7 89 12 14 41 22 11 1966 8.0 90 19 13 38 21 10 1967 9.2 89 25 10 35 19 11 1968 12.5 89 27 9 34 19 11 Automotive vehicles and parts 1965 . 1 100 26 12 58 4 (2) 1966 1.9 100 48 7 41 4 (2) 1967 2.6 100 61 5 30 4 (2) 1968 4.3 100 61 4 29 6 (2) 1 Census basis. The groups shown do not add to total because miscellaneous imports, such as the return ofgoods previously exported and military items, are omitted. 2 Less than 0.5 per cent. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

302 FEDERAL RESERVE BULLETIN □ APRIL 1969 1968, almost double the 3 per cent share of 5 years ago. Imports of electrical machinery were particularly heavy, reflecting with a lag the surge in public utility investment that began around the end of 1966. Purchases of food and industrial materials, other than steel and copper, increased in 1968 by 15 per cent. Neither the ratio of imported foodstuffs to total domestic food expenditures nor the ratio of imported industrial materials—other than steel and copper—to total final sales of goods has shown much long­ term increase. Imports of materials, however, have varied more than proportionately with cyclical variations in the domestic economy. The trend toward a larger share of finished products in the commodity composition of imports is reflected in shifts in the geographic distribution of our imports (Table 5). In the early 1960’s when food and industrial materials were a larger portion of total imports, the less-developed countries provided about 40 per cent of all U.S. imports; in 1968 their share was a little over 25 per cent. Japan is now second only to Canada as a supplier of goods to the United States, accounting for over 12 per cent of total imports in 1968, while Western Europe’s share is 30 per cent. The increase in Canada’s share reflects the growth in auto­ mobile trade resulting from the Automotive Agreement of 1965. In 1968, exports did well, gaining nearly 10 per cent in value, in response to the general upswing in world demand. This was considerably more than the average 6.5 per cent annual increase between 1960 and 1967. The expansion of exports last year was entirely in shipments of nonagricultural products, particu­ larly manufactured goods. The value of exports of agricultural products dipped slightly as food grain crops reached record amounts in both importing and supplying countries. In the earlier part of 1968 increased deliveries of commer­ cial transport planes and automobiles and parts—the latter largely to Canada—accounted for the bulk of the gain in exports of nonagricultural commodities; the advance in the second half of the year was more broadly based and included larger ship­ ments of machinery, chemicals, and nonfood consumer goods. By areas, the direction of export expansion also shifted in the second half of 1968, with the less developed countries account­ ing for less of the increase and Western Europe, particularly the European Economic Community (EEC), accounting for more. Sales to Japan expanded further but exports to Canada, aside from automobile deliveries, remained sluggish. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 303 o I U.S. nonagricultural EXPORTS to principal foreign markets | are related to INDUSTRIAL PRODUCTION For notes see p. 308. Changes in the pattern of growth in U.S. exports to major areas appear to be roughly consistent with changes in current economic conditions in those markets, after taking account of the special factors affecting aircraft sales, exports of autos to Canada, and agricultural commodities. During the period covered in Chart 3, 1965-68, the swings in our exports to these areas seem to parallel changes in their business activity, though for a number of reasons the amplitudes of the export changes vary considerably from those for foreign output and other eco­ nomic indicators during short periods. The countries of continental Western Europe customarily ac­ count for between 25 and 30 per cent of total U.S. nonmilitary merchandise sales abroad. Exports to this area expanded by about 10 per cent from 1967 to 1968 after showing no gain in 1967, responding to a marked upturn in economic activity in these countries last year after a pause in 1966-67. Last year shipments of agricultural products fell by more than 5 per cent as harvests abroad improved, but this drop was more than offset by a 15 per cent rise for nonagricultural goods, a larger advance proportionately than to any other area. Deliveries of civilian aircraft and other nonagricultural exports—machinery, chemi­ cals, and consumer goods—advanced sharply. The increase in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN □ APRIL 1969 shipments of nonagricultural commodities—other than aircraft —was particularly strong in the second half of 1968, when such exports were more than 20 per cent greater than in the first half. About 40 per cent of U.S. nonagricultural exports to con­ tinental Western Europe consist of machinery; 45 per cent are industrial materials (chemicals, paper products, copper, fuels); consumer products account for less than 15 per cent. It is the strong weight of industrial products, notably machinery, that makes U.S. exports to this area particularly susceptible to changes in European industrial activity, and especially to changes in investment outlays and demand for durable goods. From Chart 3, it can be observed that the changes in U.S. nonagricultural exports—other than aircraft—to these Euro­ pean countries parallel movements in their industrial production. As business activity in Europe slackened in 1966 and the first half of 1967, U.S. nonagricultural exports dropped. With the strengthening in economic activity beginning in mid-1967, our exports to these countries also began to increase, but more mod­ erately and with some delay, as industrial capacity remained ample. It was only in the second half of 1968, when industrial output in the EEC countries spurted sharply—adjusted for the effects of the May strikes in France—that our exports acceler­ ated. Possibly also contributing to this strong advance were ship­ ments postponed so as to arrive after July 1, when 40 per cent of the Kennedy Round of tariff reductions became effective in those countries. As output is still rising rapidly in Europe and demand pressures on European industrial and labor resources are expected to be strong in 1969, U.S. exports to this area can be expected to advance significantly again this year. U.S. exports to the United Kingdom expanded by 5 per cent from 1967 to 1968, about the same rate as a year earlier. Here too there was a drop in exports of agricultural products and a substantial rise in nonagricultural exports, especially in aircraft, chemicals, and machinery. The last item accounts for over 40 per cent of total U.S. shipments of nonagricultural commodities—■ other than aircraft—to the United Kingdom. Our share in the U.K. market has improved steadily from 10.5 per cent of total U.K. imports in 1963 to 13.5 per cent last year. However, the increase in the U.S. share is below the gain scored by the EEC countries, particularly Germany. Apparently the sources of U.K. imports have shifted away from Canada Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 305 and the less developed countries toward the United States and Europe. Measures taken by the British Government to curb consump­ tion and reduce imports make it likely that U.S. exports to the United Kingdom this year may not be so buoyant as they were last year. However, the projected high rate of U.K. business investment in 1969 may still provide support for machinery exports. In 1968, U.S. exports to Japan of agricultural and other products each increased by about 10 per cent, but the U.S. share of Japanese imports continued to fall off. From 35 per cent in 1960 the U.S. share, though still large, was reduced to 27 per cent last year. The composition of our exports to Japan may be an impor­ tant factor in explaining the relatively poor performance of our exports over the years. The bulk of our nonagricultural ship­ ments to Japan consists of industrial materials—coal, scrap iron, and logs are important examples—rather than machinery. The small proportion of machinery may in part be a consequence of Japanese import controls on heavy electrical equipment and electronic computers, which elsewhere are important export items for the United States. Swings in U.S. nonagricultural exports to Japan have been large relative to changes in Japanese industrial production recently; the extraordinary rise in 1967 was probably related to heightened demand pressures in Japan, including a large in­ crease in inventories. In 1969, U.S. exports to Japan may show a greater rate of increase than in 1968 as a result of Japan’s im­ proved balance of payments position and the relaxation of mone­ tary restraints last summer. U.S. exports to Canada are only loosely related to concurrent changes in Canadian industrial output. This probably reflects the fact that a considerable part of our exports is also influenced strongly by the investment activity in Canada of U.S. corpora­ tions, and the timing of their investment outlays is not neces­ sarily related to current levels of Canadian business activity. The bulk of the 12 per cent increase from 1967 to 1968 in total U.S. exports to Canada consisted of automobiles and parts, and civilian aircraft. Shipments of other nonagricultural prod­ ucts, principally chemicals and consumer goods, advanced by less than 5 per cent. Machinery exports, which regularly account Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN □ APRIL 1969 for nearly one-half of nonagricultural exports (other than cars and aircraft), failed to expand for the first time since 1961 as Canadian plant and equipment expenditures declined. Our share of Canadian imports, except for automotive products, has not changed significantly since 1960, remaining at about 65 per cent. U.S. exports to the less developed countries expanded in 1968 by over 8 per cent. Shipments to Latin America were nearly 15 per cent larger than in 1967, while shipments to the developing countries in Asia and Africa rose only 5 per cent. The upturn in our exports to Latin America last year was supported by increased U.S. direct investments and U.S. Government credits. Agricultural exports—largely under aid programs—make up about one-third of our exports to the developing countries of Asia and Africa. Deliveries of wheat to India and Pakistan were reduced as a result of their improved harvests last year, and total agricultural exports to this region dipped below those of 1967. The major increase in exports of nonagricultural goods was in civilian aircraft. Competitive position. The U.S. index of unit values of manu­ factured goods exports—giving an approximate measure of aver­ age prices—increased by nearly 8 per cent from 1965 to 1968 after changing very little between 1960 and 1964. In con­ trast, export prices of Germany, a major competitor, have in­ creased only slightly since 1965, and only a moderate rise was recorded for Japan and Italy. The devaluation of sterling in late 1967 succeeded in rolling back the dollar equivalent of British export prices to below those of 1965. Despite these sharp dis­ parities in price movements between the United States and other EXPORT PRICES MANUFACTURED GOODS countries, our over-all share of total exports to markets other than the United States has shown little year-to-year variation since 1965, averaging about 19 per cent. This, however, is below the more than 20 per cent average from 1960 to 1964. For various categories of manufactures, however, there have been sizable shifts. Our shares in exports of commercial aircraft and of automobiles and parts have risen (the latter reflecting the effects of the 1965 Automotive Agreement with Canada). Our relative share in chemicals deteriorated from 1965 to 1967 but recovered in 1968 to about that in 1965-66, and the share of adjusted world exports of electrical machinery has changed little in the last 3 years. There has been a further worsening of our position in nonelectric machinery and the “all other” group For notes see p. 308. —largely consumer goods and semifinished industrial products Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 307 such as paper products, metal manufactures, and textile ma­ terials—and in 1968, our shares in exports of these two broad categories were significantly less than in 1964. In general, the U.S. export picture in recent years seems to be a mixture of some signs of strength for certain products, but slow or no progress in others. Whether the accentuation in recent years of the rise in U.S. prices relative to those of a number of other industrial countries will begin to have a greater effect on our export performance remains to be seen. CURRENT Measurement of the underlying state of affairs in the balance DEVELOPMENTS of payments this year will be complicated for some time by the effects of the dock strike and by the distortions resulting from the massive capital inflow in the last quarter of 1968. The latter factor should be taken into account in assessing the first-quarter- 1969 results, and the two quarters should probably be averaged. One encouraging aspect has been the continued large volume in January and February of net foreign purchases of U.S. equity securities; the total for the 2 months was more than $600 mil­ lion. Moreover, relatively high U.S. interest rates brought a major further increase of perhaps $3 billion in U.S. liabilities to foreign commercial banks during the first quarter. Capital flows between the United States and other countries for the rest of the year will probably be influenced more by relative costs of funds than by the newly announced easing of the restraints on outflows of U.S. funds. U.S. corporate investors appear to have reduced their security offerings in the European market after February; this could reflect less receptivity for convertible debentures in view of a less buoyant stock market here, but it may also mean that many direct investors are using funds available from earlier borrowings or are using more funds from U.S. sources. The potential for the latter is very large, not only because the program ceiling has been raised from $2.6 billion in 1968 to $3.35 billion in 1968, but also as a result of the carryover into 1969 of well over $1.0 billion of investment “allowables” not used in 1968. It is in the area of the financing of direct investments that relative borrowing costs will be par­ ticularly influential. Some additional potential for outflows of credit from banks and other financial institutions to foreigners also arises from the changes in the voluntary foreign credit restraints administered by the Federal Reserve, but if additional outflows occur they are Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

expected to be used mainly to finance exports. The revision of the guidelines for financial institutions would theoretically permit an additional outflow of about $400 million—after deducting some attrition of outstanding credits to continental Europe—and there could be some additional outflow through reductions in the amount of unused leeway. Here again, the actual outflow will be limited by over-all credit conditions. The reduction in the rate of the IET, dropping the yield dif­ ferential imposed on taxable foreign securities to % per cent from P/4 per cent, is not likely to open the way for greatly increased purchases of foreign securities at current interest rates here and abroad. Improvement in the trade balance depends importantly on the effectiveness with which fiscal and monetary policies are used to contain excessive demand pressures and price increases in the United States. A cooling off of aggregate demand would help, through both income-demand and price-cost effects, to dampen the rise in imports that distorted last year’s pattern of international transactions. □ Notes to Charts: Chart 1: The balances on goods and services and on goods alone exclude transfers under military grants. U.S. Government capital and grants are after deducting scheduled debt re­ payments and exclude military grants and pensions. U.S. private capital is before deduction of the use of any funds obtained through borrowing abroad. Foreign private capital excludes liabilities of U.S. banks to commercial banks abroad and excludes U.K. net transactions in U.S. corporate securities through 1967. The official settlements balance corresponds to Table 1, item 2; the adjusted over-all balance corresponds to Table 1, item 3. Chart 3: The changes in U.S. nonagricultural exports are calculated from data in 1963 dollars and are adjusted to exclude automobile shipments to Canada and civilian aircraft exports. Foreign industrial production indexes are obtained from data published in OECD, Main Economic Indicators, March 1969. All changes are at seasonally adjusted annual rates. EEC countries account for about 80 per cent of industrial production in continental Western Europe; EEC industrial production is used here to approximate continental Western European industrial production. The data have been adjusted to exclude the effects on industrial production of the disorders in France during the second quarter of 1968. Margin chart (Export Prices on p. 306): The values shown represent the dollar equiva­ lents of foreign currency prices for countries other than the United States. German export prices in dollars were affected by an upward revaluation in March 1961; U.K. prices were affected by a devaluation in November 1967. 308 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 not the Federal Reserve Banks undertake studies 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 the members of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of some instances the Federal Reserve System the studies or papers summarized in the finances similar studies by members of the Bulletin are available in mimeographed academic profession. form. The list of Federal Reserve Board From time to time the results of studies publications at the back of each Bulletin that are of general interest to the economics includes a separate section entitled “Staff profession and to others are summarized—or Economic Studies" that enumerates the stud­ they may be printed in full—in this section ies for which copies are currently available of the Bulletin. in that form. Study Summary CHANGES IN BANK OWNERSHIP: THE IMPACT ON OPERATING PERFORMANCE Paul F. Jessup—University of Minnesota This paper was prepared under a research contract with the Federal Reserve Bank of Minneapolis during the summer of 1968. Recent as well as proposed changes in the banks place more emphasis on consumer Nation’s banking system have stimulated re­ loans, usually have higher service charges on search relating to banking structure and op­ demand deposit accounts, and have higher erations. Such research can provide the expense ratios. To extend the scope of these basis for informed legislative consideration research contributions, this study examines and regulatory decisions. Important previous whether there are significant differences in studies (such as Lawrence’s “The Perform­ the operating performance of banks after ance of Bank Holding Companies” and ownership changes among individual share­ Horvitz and Shull’s “The Impact of Branch holders. Banking on Bank Performance”) generally Based on specified premises of rational conclude that banks acquired by registered investment and managerial behavior, it is bank holding companies or by branch sys­ hypothesized that independent banks, after tems subsequently have higher loan/asset changes in control, will have significantly ratios than similar independent banks. higher loan/asset ratios. Other operating These studies also find that the acquired changes are also predicted. To test the hy- 309 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

potheses, banks in Minnesota with new groups of individuals. A major finding is majority ownership and new senior man­ that banks with new owner-managers gen­ agement during 1961-65 are identified, as erally have higher loan/asset ratios. Also are control groups of similar banks that did such banks tend to place greater emphasis not experience such changes. Three samples on consumer loans. At the same time these and three control groups are thus identified. banks generally do not charge higher prices Before-and-after analysis for each set of for their services, as measured by such banks is achieved by examining specified ratios as (revenue on loans)/(total loans) operating ratios in 1960 and 1966. The and (service charges on deposit accounts)/ principal test is a statistical comparison of (demand deposits). Recognizing certain the mean ratios of the sets of banks, and the limitations to the study, these findings pro­ selected level of significance is 5 per cent. vide important information for public policy. The statistical tests confirm the hypo­ Several of the principal implications for thesis that significant differences in operating bank regulatory agencies and State legis­ characteristics are associated with changes latures are specified in the conclusions of in bank ownership among individuals or the study. □ 310 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Quarterly Survey of Changes in Bank Lending Practices Since late 1964, the Federal Reserve System rapid rate of inventory accumulation— has conducted quarterly surveys to obtain while the availability of funds to banks was information from large commercial banks curtailed sharply further by monetary policy. concerning changes in their nonprice lend­ Consequently, most banks took significant ing policies and practices and their appraisal measures to tighten their lending policies. of current and anticipated demand for busi­ Well over 90 per cent of the respondent ness loans. Initially, these surveys were con­ banks in the May survey indicated that they ducted on an experimental basis and in light had raised interest rates on loans to non­ of this experience, the survey was later re­ financial businesses and 50 to 60 per cent vised and placed on an established basis. had raised interest rates on loans to finance The results of these surveys are published companies. About two-thirds of the re­ annually in the spring; the review of 1967 spondents also had firmed policies with re­ developments, together with a description spect to compensating balance requirements of the survey, appeared in the April 1968 on loans to nonfinancial businesses, while issue of the Federal Reserve Bulletin. about one-fourth tightened these require­ Summary statistics covering the four surveys ments on loans to finance companies. Over in 1968 are included in this article. half of the banks indicated greater reluc­ Although Federal Reserve monetary pol­ tance to establish new or larger credit lines icy had begun to move toward restraint in to finance companies and to grant loans to late 1967, loan demands at banks early in new or nonlocal customers. Moreover, with 1968 were generally weak and most banks the exception of the continued willingness did not immediately firm their lending pol­ of most banks to make consumer instalment icies in response to the slightly reduced loans, from 20 to 30 per cent of the respond­ availability of funds. Only about one-third ents tightened policies in all remaining areas of the respondent banks in the February covered by the survey. Historically, con­ survey indicated that they had raised interest sumer instalment loans have been among rates on loans to business borrowers, which the most profitable categories of bank lend­ in many cases probably reflected the prime ing and among the last to feel the impact of rate increase in November 1967. Moreover, monetary restraint. only a very few banks stiffened nonprice Banks generally continued to maintain lending terms and conditions across the restrictive lending policies through the sum­ board, although somewhat more of these mer, even though Federal Reserve monetary banks did indicate firming of selected poli­ policy became more accommodative follow­ cies, such as those regarding compensating ing enactment by Congress of fiscal restraint balances and loans to new and nonlocal cus­ measures in late June, which were antici­ tomers. pated to have a marked slowing effect on In the spring, however, Ioan demands by economic activity in the coming months. Al­ businesses picked up substantially—in re­ though inflows of funds to banks improved sponse to increased tax payments and a more during the summer, loan demands continued 311 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN □ APRIL 1969 to be strong. Thus, while a few banks in­ some banks to tighten further their lending dicated in the August survey that they had policies. When it became apparent that the changed their policies—some toward ease impact of the fiscal restraint program was and others toward restraint—the over­ not going to be felt so quickly as had been whelming majority reported that their poli­ anticipated, Federal Reserve monetary pol­ cies remained essentially unchanged from icy again moved toward restraint. Mean­ those in effect 3 months earlier, which gen­ while, loan demands—which had been erally had been restrictive. strong since spring—strengthened further, However, economic and financial devel­ probably reflecting the financing of working opments over the fall and early winter led capital needs associated with increased plant QUARTERLY SURVEY—FEBRUARY 1968 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1968, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much .Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 125 (100.0) 21 (16.8) 73 (58.4) 30 (24.0) 1 (.8) Anticipated in next 3 months.................... 124 (100.0) 1 (-8) 64 (51.6) 56 (45.2) 3 (2.4) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged......................... 125 (100.0) 6 (4.8) 37 (29.6) 82 (65.6) Compensating or supporting balances . . 124 (100.0) 3 (2-4) 18 (14.5) 102 (82.3) 1 (.8) Standards of creditworthiness............... 124 (100.0) 1 (.8) 9 (7.3) 113 (91.2) 1 (.8) Maturity of term loans.......................... 124 (100.0) 2 (1-6) 9 (7.3) 104 (83.9) 8 (6.5) 1 (.8) Practice concerning review of credit lines or loan applications: Established customers............................ 125 (100.0) 2 (1.6) 120 (96.0) 3 (2.4) New customers...................................... 124 (100.0) 2 (1.6) 22 (17.7) 89 (71.8) 11 (8.9) Local service area customers................. 120 (100.0) 3 (2.5) 111 (92.5) 6 (5.0) Nonlocal service area customers........... 121 (100.0) 2 (1.7) 21 (17.4) 89 (73.6) 9 (7.4) Factors relating to applicant:2 Value as depositor or source of collat­ eral business..................................... 125 (100.0) 4 (3.2) 22 (17.6) 97 (77.6) 2 (1.6) Intended use of the loan........................ 125 (100.0) 1 (-8) 17 (13.6) 104 (83.2) 3 (2.4) Loans to independent finance companies:3 Terms and conditions: Interest rate charged......................... 125 (100.0) 3 (2.4) 25 (20.0) 97 (77.6) Compensating or supporting balances.. 125 (100.0) 1 (8) 6 (4.8) 118 (94.4) Enforcement of balance requirements.. 125 (100.0) 1 (8) 15 (12.0) 109 (87.2) Establishing new or larger credit lines.. 125 (100.0) 6 (4.8) 13 (10.4) 96 (76.8) 10 (8.0) ......................... Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses.......................... 125 (100.0) 12 (9.6) 96 (76.8) 17 (13.6) Consumer instalment Ioans....................... 124 (100.0) 1 (-8) 94 (75.8) 27 (21.8) 2 (1.6) Single-family mortgage loans.................... 122 (100.0) 3 (2.5) 8 (6.6) 94 (77.0) 16 (13.1) 1 (.8) Multifamily mortgage loans...................... 122 (100.0) 3 (2.5) 11 (9.0) 103 (84.4) 5 (4.1) All other mortgage loans........................... 122 (100.0) 2 (1.6) 11 (9.0) 96 (78.7) 13 (10.7) Participating loans with correspondent banks.................................................... 125 (100.0) 5 (4.0) 104 (83.2) 15 (12.0) 1 (-8) Loans to brokers......................................... 124 (100.0) 2 (1.6) 7 (5.6) 108 (87.1) 7 (5.6) 1 After allowance for bank's usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BANK LENDING PRACTICES 313 and equipment expenditures. Thus, even ships in approving loan requests. On the though most banks indicated in the Novem­ other hand, about one-third of the banks in­ ber survey that their lending policies still were dicated that they had reduced interest rates unchanged, an appreciable number of re­ charged on loans to businesses and to fi­ spondents, particularly smaller banks where nance companies, but these reductions gen­ loan demands had increased more than at erally had been in response to the September larger banks, had firmed their policies. This decline in the prime rate. Shortly after the was true especially with regard to loans to November survey date, the prime rate was new or nonlocal customers and the amount raised back to the pre-September level and of emphasis placed on customer relation­ then raised again in late December. □ QUARTERLY SURVEY—MAY 1968 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1968, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 125 (100.0) 12 (9.6) 73 (58.4) 36 (28.8) 4 (3.2) Anticipated in next 3 months................... 125 (100.0) 12 (9.6) 76 (60.8) 32 (25.6) 5 (4.0) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged......................... 125 (100.0) 40 (32.0) 77 (61,6) 8 (6.4) Compensating or supporting balances, . 125 (100.0) 19 (15.2) 53 (42.4) 52 (41.6) 1 (.8) Standards of creditworthiness............... 125 (100.0) 10 (8.0) 31 (24.8) 84 (67.2) Maturity of term loans........................... 125 (100.0) 15 (12.0) 26 (20.8) 84 (67.2) Practice concerning review of credit Jines or loan applications: Established customers .................... 125 (100.0) 1 (.8) 34 (27.2) 90 (72.0) New customers........................................ 125 (100.0) 34 (27.2) 47 (37.6) 44 (35.2) Local service area customers. ....... 123 (100.0) 2 (1.6) 35 (28.5) 86 (69.9) Nonlocal service area customers........... 123 (100.0) 30 (24.4) 40 (32.5) 53 (43.1) Factors relating to applicant:2 Value as depositor or source of collat­ eral business..................................... 125 (100.0) 20 (16.0) 48 (38.4) 57 (45.6) Intended use of the loan ................ 124 (100.0) 21 (16.9) 34 (27.4) 69 (55.6) Loans to independent finance companies:^ Terms and conditions: 124 (100.0) 18 (14.5) 57 (46.0) 49 (39.5) Compensating or supporting balances.. 124 (100.0) 7 (5.6) 24 (19.4) 93 (75.0) Enforcement of balance requirements.. 124 (100.0) 14 (11,3) 26 (21.0) 84 (67.7) Establishing new or larger credit lines.. 124 (100.0) 28 (22,6) 38 (30.6) 58 (46.7) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses ...................... 125 (100.0) 19 (15.2) 43 (34.4) 63 (50.4) Consumer instalment loans....................... 124 (100.0) 1 (.8) 10 (8.1) 101 (81.5) 11 (8.9) 1 (.8) Single-family mortgage loans.................... 122 (100.0) 18 (14.8) 26 (21.3) 73 (59.8) 5 (4.1) Multifamily mortgage loans..................... 121 (100.0) 18 (14.9) 27 (22.3) 75 (62.0) 1 (.8) All other mortgage loans........................... 122 (100.0) 11 (9.0) 43 (35.2) 67 (54.9) 1 (.8) Participating loans with correspondent hanks... . . ....................... 125 (100.0) 2 (1.6) 22 (17.6) 97 (77.6) 4 (3.2) I .nans to brokers .... . 124 (100.0) 10 (8.1) 19 (15.3) 95 (76.6) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN □ APRIL 1969 QUARTERLY SURVEY—AUGUST 1968 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 15, 1968, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 125 (100.0) 2 (1.6) 23 (18.4) 72 (57.6) 27 (21.6) 1 (-8) Anticipated in next 3 months................... 124 (100.0) ......................... 26 (21.0) 72 (58.0) 26 (21.0) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged........................ 125 (100.0) 1 (-8) 9 (7.2) 106 (84.8) 9 (7.2) Compensating or supporting balances.. 125 (100.0) 1 (-8) 9 (7.2) 111 (88.8) 4 (3.2) Standards of creditworthiness........... 125 (100.0) 8 (6.4) 115 (92.0) 2 (1.6) Maturity of term loans....................... 125 (100.0) 7 (5.6) 113 (90.4) 5 (4.0) Practice concerning review of credit lines or loan applications: Established customers............................ 125 (100.0) 2 (1.6) 114 (91.2) 9 (7.2) New customers....................................... 125 (100.0) 4 (3.2) 9 (7.2) 92 (73.6) 19 (15.2) 1 (.8) Local service area customers................. 123 (100.0) 4 (3.3) 108 (87.8) 11 (8.9) Nonlocal service area customers........... 123 (100.0) 4 (3.3) 17 (1'3.8) 94 (76.4) 7 (5.7) 1 (.8) Factors relating to applicant:2 Value as depositor or source of collat­ eral business..................................... 125 (100.0) 3 (2.4) 15 (12.0) 105 (84.0) 2 (1.6) Intended use of the loan....................... 124 (100.0) 2 (1.6) 12 (9.7) 106 (85.5) 4 (3.2) Loans to independent finance companies:3 Terms and conditions: Interest rate charged........................ . 124 (100.0) 4 (3.2) 119 (96.0) 1 (-8) Compensating or supporting balances. . 124 (100.0) 4 (3.2) 119 (96.0) 1 (-8) Enforcement of balance requirements.. 123 (100.0) 1 (.8) 10 (8.1) Ill (90.3) 1 (.8) Establishing new or larger credit lines.. 124 (100.0) 8 (6.5) 19 (15.3) 89 (71.7) 8 (6.5) ......................... Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses...................... 125 (100.0) 2 (1.6) 12 (9.6) 103 (82.4) 8 (6.4) Consumer instalment loans................... 124 (100.0) 3 (2.4) 104 (83.9) 15 (12.1) 2 (1.6) Single-family mortgage loans........... 121 (100.0) 1 (-8) 8 (6.6) 86 (71.1) 22 (18.2) 4 (3.3) Multifamily mortgage loans.................. 121 (100.0) 3 (2.5) 13 (10.7) 99 (81.8) 4 (3.3) 2 (1.7) All other mortgage loans...................... 121 (100.0) 2 (1.7) 14 (11.6) 93 (76.8) 11 (9.1) 1 (-8) Participating loans with correspondent banks............................................... 125 (100.0) 1 (.8) 9 (7.2) 107 (85.6) 8 (6.4) Loans to brokers....................................... 124 (100.0) 1 (.8) 13 (10.5) 104 (83.9) 6 (4.8) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. Ioans generated through the sale of the parent company’s products. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BANK LENDING PRACTICES 315 QUARTERLY SURVEY—NOVEMBER 1968 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1968, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 125 (100.0) 3 (2-4) 42 (33.6) 67 (53.6) 13 (10.4) ......................... Anticipated in next 3 months................... 125 (100.0) 36 (28.8) 79 (63.2) 10 (8.0) Much firmer Moderately Essentially Moderately Much Total policy firmer unchanged easier easier Loans to nonfinancial businesses: Terms and conditions: Interest rates charged............................. 125 (100.0) 9 (7.2) 73 (58.4) 43 (34.4) Compensating or supporting balances.. 125 (100.0) 14 (11.2) 110 (88.0) 1 (.8) ......................... Standards of creditworthiness .............. 125 (100.0) 1 (-8) 5 (4.0) 119 (95.2) Maturity of term loans........................... 125 (100.0) I (.8) 4 (3.2) 117 (93.6) 3 (2.4) Practice concerning review of credit lines or loan applications: Established customers............................ 125 (100.0) 2 (1.6) 119 (95.2) 4 (3.2) New customers..................................... 125 (100.0) 1 (-8) 18 (14.4) 95 (76.0) 11 (8.8) Local service area customers................. 123 (100.0) 2 (1.6) 114 (92.7) 7 (5.7) Nonlocal service area customers........... 123 (100.0) 3 (2.4) 22 (17.9) 92 (74.8) 6 (4.9) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.................................... 125 (100.0) 3 (2.4) 18 (14.4) 103 (82.4) 1 (.8) Intended use of the loan........................ 125 (100.0) 1 (.8) 12 (9.6) 107 (85.6) 5 (4.0) Loans to independent finance companies:3 Terms and conditions: 125 (100.0) 1 (.8) 90 (72.0) 34 (27.2) Compensating or supporting balances.. 125 (100.0) 3 (2.4) 122 (97.6) Enforcement of balance requirements.. 125 (100.0) 1 (.8) 3 (2.4) 121 (96.8) Establishing new or larger credit lines.. 125 (100.0) 4 (3.2) 13 (10.4) 97 (77.6) 11 (8.8) ......................... Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses........................... 125 (100.0) 9 (7.2) 106 (84.8) 10 (8.0) Consumer instalment loans....................... 124 (100.0) 3 (2.4) 98 (79.1) 22 (17.7) 1 • 8) Single-family mortgage loans.................... 122 (100.0) 7 (5.7) 104 (85.3) 10 (8.2) I • 8) Multifamily mortgage loans...................... 122 (100.0) 1 • 8) 11 (9.0) 103 (84.5) 7 (5.7) All other mortgage loans........................... 122 (100.0) I '.8) 8 (6.6) 106 (86.9) 7 (5.7) Participating loans with correspondent 125 (100.0) 6 (4.8) 113 (90.4) 6 (4.8) Loans to brokers...................................... 123 (100.0) 2 ( • 6) 5 (4.1) 111 (90.2) 5 (4.1) ......................... 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,’’ finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Revised Guidelines For Banks and Nonbank Financial Institutions Effective April 4, 1969, the Board of Gover­ announced, Governor Andrew F. Brimmer, nors of the Federal Reserve System issued who administers the program in behalf of revised 1969 guidelines covering foreign the Board of Governors, said that the banks credits and investments by U.S. banks and had an unused leeway of $475 million at other financial institutions. The revisions, the end of 1968. Thus the revision would which are given below, represent a modifica­ potentially allow banks to increase their tion of earlier announced guidelines and are existing level of credits to foreigners by designed to permit additional flexibility to fi­ about $875 million. It is expected that the nance U.S. exports and to resolve some full potential will not be used, and a substan­ serious equity problems. tial leeway will continue to be maintained. The Voluntary Foreign Credit Restraint Furthermore, the potential increase will be Program (VFCR) is one of several elements lessened slightly as bank ceilings continue to in the Government’s over-all program to be progressively reduced by the amount of strengthen the U.S. balance of payments repayments of term loans to residents of position. developed countries of continental Western Under the revised guidelines, a bank will Europe. either retain its present ceiling on foreign The program has been in force since lending or adopt a new ceiling equal to 1 lA February 1965 and was last revised in De­ per cent of its total assets as of December cember of last year when guidelines for 1969 31, 1968. This formula will permit a modest were issued. In considering the program at increase of $400 million in the foreign lend­ that time, the Board concluded that the bal­ ing ceilings for banks which stood at $9.7 ance of payments prospects for 1969 did not billion at the end of last year. permit any basic change in VFCR. Yet, in For nonbank financial institutions—such view of the need to improve the trade bal­ as insurance companies, mutual funds, fi­ ance, the Board said it planned to re-ex­ nance companies, and bank trust depart­ amine the program early in 1969 to deter­ ments—the ceiling on foreign assets will be mine whether additional flexibility for finan­ restored to 100 percent of the end-of-1967 cing U.S. exports might be provided in the base. The ceiling had earlier been continued guidelines. at 95 per cent of that base for the current As part of that review, Governor Brim­ year. This modification—designed primar­ mer has held a series of seven regional meet­ ily to simplify administration of the program ings throughout the country at the Federal —will increase the ceiling for nonbank Reserve Banks of Boston, New York, Phila­ financial institutions by an estimated $40 delphia, Atlanta, Chicago, Dallas, and San million during 1969. At the end of last year Francisco. Representatives of other Federal investments by nonbank financial institu­ Reserve Banks and of the reporting commer­ tions covered by the guidelines amounted to cial banks and other financial institutions $1.4 billion. participated in these meetings. At the time the revised guidelines were Governor Brimmer also said it had be- 316 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

come apparent as the regional meetings 23, the 1969 ceiling on foreign credit exten­ progressed that some additional flexibility in sions by banks remained at the level specified the guidelines was needed to finance U.S. ex­ in the guidelines, as adjusted,, of one year ports and to reduce inequities among banks earlier. For about one-half of the approxi­ of different size inherent in the VFCR pro­ mately 160 reporting banks (accounting for gram. The financing of U.S. exports under more than 90 per cent of the aggregate ceil­ the VFCR refers to credits extended by the ing), this was essentially 103 per cent of the banks to foreigners to finance purchases 1964 base. For the remainder of the report­ from the United States. The program does ing banks, the ceiling was the 1967 ceiling not affect credits to American producers and plus one-third of the difference between that exporters to finance U.S. exports. amount and 2 per cent of total assets as of Under the guidelines issued last December December 31, 1966. I. General Purpose In order to help to strengthen the U.S. tions are asked to continue to restrain their balance of payments, U.S. financial institu- foreign loans and investments. II. Banks A. Ceiling Restraints with the Federal Reserve Bank in its District the possibility of adopting a special ceiling 1. Basic Restraint adequate to permit the bank to meet reason­ A bank should not hold claims on for­ able credit demands of existing customers or eigners (defined in G-2 below) at any time in other reasonable credit demands originating excess of its ceiling, as determined in 2 in its normal trade area. below, except for temporary overages as the b. In discussing the ceiling of such a result of the extension of export credit. bank, the Federal Reserve Bank will take into account the bank’s previous experience 2. Ceiling with foreign transactions, including accept­ The foreign lending guideline amount ance of foreign deposits or handling for­ (hereafter, “ceiling”) for a bank that has eign collections, and other circumstances been reporting under previous Federal Re­ concerning prospects for the bank’s engaging serve foreign credit restraint guidelines is in foreign transactions. the larger of: a. the ceiling it was expected to observe 4. Priority Credits: on December 31, 1968, under the guidelines a. Within its ceiling, and as among all in existence on that date; or types of credit to foreigners, a bank should b. U/i per cent of its total assets as of give first priority to credits to finance exports December 31, 1968. of U.S. goods (hereafter “export credits”) and second priority to credits to developing 3. Special Ceiling: countries. a. A bank that, on December 31, 1968, b. Export credits that result in sales tak­ had outstanding claims on foreigners of less ing place on credit rather than, in the ab­ than $500,000 and that has no special ceil­ sence of such credits, on the basis of cash ing under previous guidelines may discuss are not to be considered as priority credits. 317 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN □ APRIL 1969 5. Western Europe: extension of credit to residents of Canada. a. Term Loans. Banks should not make For the purpose of determining the aggre­ new term loans (loans with maturities of gate amount of a bank’s outstanding claims over one year) to residents of developed on foreigners, any net increases in claims on countries of continental Western Europe, residents of Canada after February 29, 1968, except to finance U.S. exports. A bank’s ceil­ should be deducted from total claims on ing should be reduced each month by the foreigners, and any net reductions in claims dollar amount of any repayments it receives on residents of Canada after February 29, on term loans to such residents outstanding 1968, should be added to total claims on on December 31, 1967. foreigners. b. Short-term credits. Banks should hold 2. Certain Guaranteed and Insured Loans the amount of short-term credits (credits Loans to finance U.S. exports that either with original maturities of one year or less) are guaranteed, or participated in, by the to residents of these countries to not more Export-Import Bank, or guaranteed by the than 60 per cent of the amounts of such Department of Defense, or are insured by the credits outstanding on December 31, 1967. Foreign Credit Insurance Association are 6. Equity Investments exempt from these credit restraints. Equity investments, including those in C. Temporary Overages developed countries of continental Western 1. A bank would not be considered as Europe, may be made within a bank’s ceil­ acting inconsistently with the purpose of ing, subject to requirements of the Board of the guidelines if it temporarily exceeded its Governors. ceiling as the result of the extension of an export credit. 7. Sale of Foreign Assets 2. Such a bank should, however, refrain Any bank that sells a claim on a foreigner from making new extensions of nonpriority that is subject to these restraints, without re­ credits so as to reduce its claims on foreign­ course, (a) to a U.S. resident other than a ers to an amount within the ceiling as quick­ financial institution participating in the Fed­ ly as possible. It should also take every op­ eral Reserve credit restraint program or portunity to withdraw or reduce commit­ other than a direct investor subject to the ments, including credit lines, that are not controls administered by the Department of of a firm nature and to assure that drawings Commerce or (b) to the Export-Import under credit lines are kept to normal levels Bank should reduce its ceiling by an equiv­ and usage. At time of renewal, each credit alent amount. line should be reviewed for consistency with 8. Total Assets the program. 3. A bank whose foreign credits are in For the purpose of calculating a ceiling excess of the ceiling will be invited period­ under A-2-b above, total assets are those ically to discuss with the appropriate Fed­ shown in the Official Report of Condition, eral Reserve Bank the steps it has taken and submitted to the relevant supervisory agency, proposes to take to reduce its credits to a as of December 31, 1968. level within the ceiling. B. Exclusions D. Applicability to Financial Institutions 1. Canada 1. General These guidelines are not to restrain the The guidelines are applicable to all U.S. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 319 banks (exclusive of the trust departments foreign branches of U.S. banks if the funds of commercial banks, which should follow utilized are derived from foreign sources the guidelines for nonbank financial institu­ and do not add to the outflow of capital tions) and to “Edge Act” and “Agreement” from the United States. Corporations. b. Total claims of a bank’s domestic of­ fices on its foreign branches (including per­ 2. Edge Act and Agreement Corpora­ manent capital invested in, as well as bal­ tions: ances due from, such branches) represent a. Edge Act or Agreement Corporations bank credit to foreigners for the purposes of that, under previous guidelines, adopted a the program. ceiling separate from those of their parent banks may continue to be guided by a sepa­ E. Conformity with Objectives of rate ceiling or may combine their foreign Guidelines loans and investments with those of their 1. Department of Commerce Program parent banks. and Nonbank Financial Institutions Guide­ b. No special ceilings are provided for lines Edge Act or Agreement Corporations estab­ Banks should avoid making Ioans that lished after March 3, 1965. An Edge Act or would directly or indirectly enable borrow­ Agreement Corporation which has been ers to use funds abroad in a manner incon­ established after March 3, 1965, as a subsid­ sistent with the Department of Commerce iary of one bank should share the ceiling program or with the guidelines for nonbank of the respective parent bank. An Edge Act financial institutions. or Agreement Corporation which has been 2. Substitute Loans formed after March 3, 1965, and is a subsid­ iary of two or more banks (not associated Banks should not extend to U.S. subsid­ in a bank holding company) may be as­ iaries and to branches of foreign companies signed a share or shares of the ceilings of loans that otherwise might have been made its parent banks. Any contemplated realloca­ by the banks to the foreign parent or other tions of ceilings to the Edge Act or Agree­ affiliate of the company or that normally ment Corporation should be discussed with would have been obtained abroad. the Federal Reserve Bank of the District 3. Management of Liquid Assets in which the bank desiring to make the A bank should not place its own funds transfer is located. abroad (other than in Canada) for short­ 3. Bank Holding Companies: term investment purposes, whether such in­ a. A registered bank holding company vestments are payable in foreign currencies will be treated as a bank for the purpose of or in U.S. dollars. Banks need not, however, these guidelines. reduce necessary working balances held with b. Banks and Edge Act or Agreement foreign correspondents. Corporations which are owned by a regis­ 4. Transactions for Customers tered bank holding company may consol­ While recognizing that it must follow a idate the ceilings of one or more banks in customer’s instruction, a bank should dis­ the group. courage customers from placing liquid funds 4. Foreign Branches of U.S. Banks: outside the United States, except in Canada. a. The guidelines are not designed to re­ A bank should not place with a customer strict the extension of foreign credits by foreign obligations that, in the absence of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN □ APRIL 1969 the guidelines, it would have acquired or subsidiaries incorporated in the United held for its own account. States, 50 per cent or more of which is owned by foreigners; and foreign assets sold, 5. U.S. Branches and Agencies of For­ with recourse, to U.S. residents other than eign Banks financial institutions participating in the Branches and agencies of foreign banks Federal Reserve credit restraint program or located in the United States are requested direct investors subject to the controls ad­ to act in accordance with the spirit of these ministered by the Commerce Department. guidelines. “Claims on foreigners” exclude: contingent F. Reporting claims; unutilized credits; claims held for account of customers; acceptances executed Each bank that is eligible for a ceiling by other U.S. banks; loans to finance U.S. under these guidelines should file a Month­ exports guaranteed or participated in by the ly Report on Foreign Claims (Form FR Export-Import Bank or guaranteed by the 391/69.1) with the Federal Reserve Bank Department of Defense or insured by the in the District in which the bank is located. Foreign Credit Insurance Association; and, (Forms are available at the Federal Reserve in the manner determined in B-l above, Banks.) claims on residents of Canada. G. Definitions 3. “Credits to finance exports of U.S. 1. “Foreigners” include: individuals, part­ goods” and “export credits” are transactions nerships, and corporations domiciled out­ that are identifiable through documents side the United States, irrespective of citizen­ available to the bank. ship, except their agencies or branches lo­ 4. Developing countries are all countries cated within the United States; branches, other than: Abu Dhabi, Australia, Austria, subsidiaries, and affiliates of U.S. banks and the Bahamas, Bahrain, Belgium, Bermuda, other U.S. corporations that are located in Canada, Denmark, France, Germany (Fed­ foreign countries; and any government of a eral Republic), Hong Kong, Iran, Iraq, Ire­ foreign country or official agency thereof land, Italy, Japan, Kuwait, Kuwait-Saudi and any official international or regional in­ Arabia Neutral Zone, Libya, Liechtenstein, stitution created by treaty, irrespective of Luxembourg, Monaco, Netherlands, New location. Zealand, Norway, Portugal, Qatar, Republic 2. “Claims on foreigners” are claims on of South Africa, San Marino, Saudi Arabia, foreigners held for a bank’s own account. Spain, Sweden, Switzerland, and the United They include: foreign long-term securities; Kingdom; and other than: Albania, Bul­ foreign customers’ liability for acceptances garia, the People’s Republic of China, Cuba, executed, whether or not the acceptances Czechoslovakia, Estonia, Hungary, Com­ are held by the reporting banks; deferred munist-controlled Korea, Latvia, Lithuania, payment letters of credit described in the Outer Mongolia, Poland (including any area Treasury Department’s Supplementary Re­ under its provisional administration), Ru­ porting Instruction No. 1, Treasury Foreign mania, Soviet Zone of Germany and the Exchange Reports, Banking Forms, dated Soviet sector of Berlin, Tibet, Union of Sov­ May 10, 1968; participations purchased in iet Socialist Republics and the Kurile Is­ loans to foreigners (except loans guaranteed lands, Southern Sakhalin, and areas in East or participated in by the Export-Import Prussia that are under the provisional admin­ Bank or guaranteed by the Department of istration of the Union of Soviet Socialist Defense, or insured by the Foreign Credit Republics, and Communist-controlled Viet­ Insurance Association); loans to financial nam. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 321 III. Nonbank Financial Institutions A. Types of Institutions Covered of continental Western Europe beyond the amount held on December 31, 1968, except The group of institutions covered by the for new credits that are judged to be essen­ nonbank guidelines includes: trust com­ tial to the financing of U.S. exports. This panies; trust departments of commercial means that reductions through amortiza­ banks; mutual savings banks; insurance tions, maturities, or sales may be offset by companies; investment companies; finance new acquisitions in these countries. How­ companies; employee retirement and pen­ ever, institutions are expected to refrain sion funds; college endowment funds; char­ from offsetting proceeds of sales to other itable foundations; and the U.S. branches Americans by new acquisitions from for­ of foreign insurance companies and of other eigners. foreign nonbank financial corporations. In­ Institutions may invest in noncovered for­ vestment underwriting firms, securities eign assets generally as desired. However, brokers and dealers, and investment coun­ they are requested to refrain from making seling firms also are covered with respect to any loans and investments, noncovered as foreign financial assets held for their own ac­ well as covered, which appear to be incon­ count and are requested to inform their cus­ sistent with other aspects of the President’s tomers of the program in those cases where balance of payments program. Among these it appears applicable. Businesses whose prin­ are the following: cipal activity is the leasing of property and 1. Noncovered credits under this program equipment, and which are not owned or that substitute directly for loans that com­ controlled by a financial institution, are not mercial banks would have made in the ab­ defined as financial institutions. sence of that part of the program applicable to them; B. Ceiling and Priorities 2, Noncovered credits to developing coun­ Each institution is requested to limit its try subsidiaries of U.S. corporations that aggregate holdings of foreign assets covered would not have been permitted under the by the program to no more than 100 per cent Department of Commerce program if made of the adjusted amount of such assets held by the U.S. parent directly. on December 31, 1967. 3. Credits to U.S. corporate borrowers Institutions generally are expected to hold that would enable them to make new foreign no foreign deposits or money market instru­ loans and investments inconsistent with the ments (other than Canadian). However, an Department of Commerce program. institution may maintain such minimum 4. Credits to U.S. subsidiaries and working balances abroad as are needed for branches of foreign companies that other­ the efficient conduct of its foreign business wise would have been made to the foreign activities. parent, or that would substitute for funds Among other foreign assets that are sub­ normally obtained from foreign sources. ject to the guideline ceiling, institutions are asked to give first priority to credits that rep­ C. Covered Assets resent the bona fide financing of U.S. ex­ Covered foreign financial assets, subject ports, and second priority to credits to de­ to the guideline ceiling, include the following veloping countries. In addition, institutions types of investments, except for “free deliv­ are requested not to increase the total of ery” items received after December 31, their investments in the developed countries 1967: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN □ APRIL 1969 1. Liquid funds in all foreign countries of whether an equity security is covered will other than Canada. This category com­ depend on the institution’s obligation to pay prises foreign bank deposits, including de­ the Interest Equalization Tax on acquisi­ posits in foreign branches of U.S. banks, and tion. Exclusion from covered assets under liquid money market claims on foreign obli­ this program normally will be indicated gors, generally defined to include marketable when, in acquiring an equity security that negotiable instruments maturing in 1 year otherwise would be covered, the purchasing or less. institution receives a certificate of prior 2. All other claims on non-Canadian American ownership, or brokerage confir­ foreign obligors written, at date of acquisi­ mation thereof. tion, to mature in 10 years or less. This cate­ D. Base-Date Holdings gory includes bonds, notes, mortgages, loans, and other credits. Excluded are bonds and Base-date holdings for any reporting date notes of international institutions of which in 1969 are defined as: the United States is a member, and loans 1. Total holdings of covered foreign guaranteed or participated in by the Export­ assets as of December 31, 1967; Import Bank or the Department of Defense 2. Minus, equity securities of companies or insured by the Foreign Credit Insurance domiciled in developed countries (except Association, regardless of maturity. Canada and Japan), that are included in 3. Net financial investment in foreign (1) but had been sold to American investors branches, subsidiaries and affiliates, located prior to the current quarter; in developed countries other than Canada 3. Plus, or minus, the difference between and Japan.1 Such financial investment in­ sales proceeds and “carrying” value of cov­ cludes payments into equity and other capi­ ered equities sold prior to the current quar­ tal accounts of, and net loans and advances ter to other than American investors or in to, any foreign businesses in which the U.S. other than U.S. markets. On each reporting institution has an ownership interest of 10 date in 1969, “carrying” value should be the per cent or more. Excluded are earnings of value reflected in the institution’s report (on a foreign affiliate if they are directly re­ Form FR 392R-68) for December 31, tained in the capital accounts of the foreign 1967, in the case of equities held on that business. date, and it should be cost in the case of 4. Long-term credits of foreign obligors equities purchased after that date. domiciled in developed countries other than “Adjusted” base-date holdings, to which Canada and Japan.1 Included in this category the 100 per cent ceiling applies, are equal to are bonds, notes, mortgages, loans, and “base-date” holdings as defined above ad­ other credits maturing more than 10 years justed for sales during the current quarter of after date of acquisition. Excluded are included covered equities in accordance with bonds of international institutions of which the procedures specified in (2) and (3) of the United States is a member. the preceding paragraph. 5. Equity securities of foreign corpora­ E. Noncovered Assets tions domiciled in developed countries other than Canada and Japan, except those ac­ Foreign financial assets not covered by quired after September 30, 1965, in U.S. the guidelines are still reportable on the markets from American investors.1 The test quarterly statistical reports to the Federal Reserve Banks. Such noncovered foreign in­ 1. See Note on p. 324. vestments include the following: Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

REVISED GUIDELINES 323 1. All financial assets in, or claims on resi­ In the event that U.S. residents hold a dents of, the Dominion of Canada. majority ownership interest in the “Dela­ 2. Bonds and notes of international insti­ ware” corporation, no part of a loan or in­ tutions of which the United States is a mem­ vestment in such a corporation is to be re­ ber, regardless of maturity. garded as a foreign asset of the institution. 3. Long-term investments in all develop­ ing countries and in Japan, including credit G. Leasing of Physical Goods instruments with final maturities of more The foreign leasing activities of firms than 10 years at date of acquisition, direct which engage primarily in the leasing of investment in subsidiaries and affiliates, and physical assets (e,g., computers, real prop­ all equity securities issued by firms domiciled erty, ships, aircraft), and which are not in these countries. owned or controlled by a U.S. financial in­ 4. Equity securities of firms in developed stitution, are not reportable under the non­ countries other than Canada and Japan that bank program. However, such activities are have been acquired in U.S. markets from reportable when they are undertaken by non­ American investors (see Point 5 above). bank financial institutions. These institutions Foreign assets of types covered by the pro­ should report the book value of any physical gram and acquired as “free delivery” items assets leased to foreigners on the appropriate —that is, as new gifts or, in the case of trust line of the quarterly form they file with their companies or trust departments of commer­ Federal Reserve Bank. cial banks, in new accounts deposited with the institution—are not defined as covered H. Investment in Certain Foreign assets, if they were acquired after December Insurance Ventures 31, 1967. Such assets should be reported as Net investment in foreign insurance ven­ a memorandum item, as should all loans tures should be reported as such wherever held that are guaranteed or participated in possible. In the case of any such ventures in by the Export-Import Bank or the Depart­ which there is no segregated net investment, ment of Defense, or insured by the Foreign the U.S. insurance company may exclude Credit Insurance Association. from its foreign assets investments within the F. Credits to Certain U.S. Corporations foreign country involved, in amounts up to 110 per cent of reserves accumulated on in­ Any loan or investment acquired by a surance sold to residents of that country, or nonbank financial institution after June 30, (if it is larger) the minimum deposit of cash 1968, that involves the advance of funds to or securities required as a condition of doing a domestic corporation which is simply a insurance business within that country. financing conduit (commonly known as a “Delaware sub”), and which in turn will transmit the funds to a foreign business, I. Long-Term Credits to Developing­ Country Businesses should be reported as a foreign asset if one or more foreigners own a majority of the Institutions are requested to discuss with “Delaware” corporation. The amounts of their Federal Reserve Bank in advance any such foreign loans or investments should be future long-term loans or direct security classified according to the country where placements that would involve extensions of the funds are actually to be used, not accord­ credit of $500,000 or more to private busi­ ing to the residence of the owners of the ness borrowers located in the developing “Delaware” corporation. countries. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

J. Reporting Requirement theless, every institution whose December 31, 1968, holdings of covered assets ex­ Each nonbank financial institution hold­ ceeded its adjusted base-date holdings should ing, on any quarterly reporting date, cov­ review its situation with its Federal Reserve ered assets of $500,000 or more, or total Bank with a view to working out an individ­ foreign financial assets of $5 million or ually tailored program for eliminating the more, is requested to file a statistical report excess during 1969. covering its total holdings on that date with In view of the balance of payments objec­ the Federal Reserve Bank of the Federal Reserve district in which its principal office tives of the program, it is noted that cov­ is located. The reports are due within 20 ered investments of nonbank financial insti­ days following the close of each calendar tutions may be permitted to exceed the quarter, and forms may be obtained by con­ guideline ceiling to the extent that the funds tacting the Federal Reserve Bank. for such investment are borrowed abroad for investment in the same country or in Institutions with holdings below these levels, although not requested to file formal countries that are subject to the same or more liberal guideline limitations. Thus, reports, are also expected to abide by the provisions of the program. funds borrowed in the developed countries of continental Western Europe may be used to finance investments in these countries K. Covered Assets in Excess of Ceiling and elsewhere, and funds borrowed in other Some institutions increased, rather than developed countries (except Canada and reduced, their holdings of covered assets in Japan) may be used to finance investment 1968. In most such instances, there may in covered foreign assets anywhere but in have been special circumstances—such as the developed countries of continental West­ inability to reduce existing investments by ern Europe. Any institution desiring to off­ enough to offset new investments made to set foreign borrowing against foreign invest­ honor long-standing firm commitments or ment, however, should discuss its plans with to accommodate requests for bona fide and the Federal Reserve Bank before entering essential financing of U.S. exports. Never- into such an arrangement. □ Note.—Developed countries other than Canada and countries: Albania, Bulgaria, the People’s Republic of Japan: continental Western Europe—Austria, Belgium, China, Cuba, Czechoslovakia, Estonia, Hungary, Com­ Denmark, France, Germany (Federal Republic), Italy, munist-controlled Korea, Latvia, Lithuania, Outer Mon­ Liechtenstein, Luxembourg, Monaco, Netherlands, golia, Poland (including any area under its provisional Norway, Portugal, San Marino, Spain, Sweden, and administration), Rumania, Soviet Zone of Germany Switzerland; other developed countries are: Abu Dhabi, and the Soviet sector of Berlin, Tibet, Union of Soviet Australia, the Bahamas, Bahrain, Bermuda, Hong Socialist Republics and the Kurile Islands, Southern Kong, Iran, Iraq, Ireland, Kuwait, Kuwait-Saudi Arabia Sakhalin, and areas in East Prussia which are under Neutral Zone, Libya, New Zealand, Qatar, Republic of the provisional administration of the Union of Soviet South Africa, Saudi Arabia, and the United Kingdom. Socialist Republics, and Communist-controlled Viet­ Also to be considered “developed” are the following nam. 324 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Credit Extended by Banks to Real Estate Mortgage Lenders Credit extended to real estate mortgage counted for the largest share of total credit lenders by large commercial banks that sub­ extended to real estate mortgage lenders. As mit weekly condition reports amounted to in earlier reports—published in the January $4.2 billion, according to preliminary sum­ 1969 and earlier Federal Reserve Bulle­ maries of reports as of February 26, 1969 tins—these loans were advanced largely to —toward the beginning of the real estate real estate mortgage companies. building season. This amount compared Compared with 4 months earlier, total with $4.1 billion as of October 30, 1968, credit extended to life insurance companies the date of the previous survey. and savings and loan associations was On each of these reporting dates, loans considerably larger near the end of Feb­ secured by the pledge of real estate mort­ ruary, whereas that extended to mortgage gage loans owned by the borrowers as well companies and mutual savings banks was as loans otherwise secured or unsecured ac­ smaller. CREDIT EXTENDED TO REAL ESTATE MORTGAGE LENDERS BY WEEKLY REPORTING BANKS Amounts in millions of dollars Outstanding on Increase (de­ crease —) Credit, by type of borrower Oct. 30, Oct. 30, Feb. 26, 1968, to 1968 1969 Feb. 26, 1969 Loans to real estate mortgage lenders, total......................................................... 3,442 3,535 93 Life insurance companies....................................................................................... 315 443 128 Mortgage companies............................................................................................... 2,194 2,106 -88 Mutual savings banks.......................................................................................... 24 17 — 7 Savings & loan associations................................................................................... 157 169 12 Other1........................................................................................................................ 752 799 47 Real estate loans purchased by banks from real estate mortgage lenders under resale agreements, total.......................................................................................................... 668 670 2 Life insurance companies....................................................................................... 78 122 44 Mortgage companies............................................................................................... 268 220 -48 Mutual savings banks............................................................................................ 95 33 -62 Savings & loan associations................................................................................... 32 141 109 OtheF........................................................................................................................ 196 155 -41 Total credit extended...................................................................................................... 4,110 4,205 95 Life insurance companies....................................................................................... '393 565 172 Mortgage companies............................................................................................ 2,462 2,326 -136 Mutual savings banks............................................................................................. 118 ' 50 -68 Savings & loan associations................................................................................... 189 310 121 Other t........................................................................................................................ 947 954 7 Number of weekly reporting banks.............................................................................. 335 336 1 With loans to real estate mortgage lenders......................................................... 268 263 -5 With real estate loans purchased from real estate mortgage lenders under resale agreements.................................................................................................... 83 84 1 With both of the above.......................................................................................... 73 72 -1 1 Firms (other than banks) that make or hold substantial amounts Note.—Details may not add to totals because of rounding. Figures of real estate Ioans. for 1969 are preliminary. 325 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statements to Congress Statement by William McChesney Martin, of engineers and chemists, or that the use Jr., Chairman, Board of Governors of the of computers and the automation of produc­ Federal Reserve System, before the Com­ tion processes were just beginning to affect mittee on Banking and Currency, U.S. business thinking and planning. As Apollo Senate, March 25, 1969. 8 was circling the moon, I was reminded that the first manned flight of any kind took I am pleased to appear before this commit­ place only a little more than 60 years ago. tee today to discuss with you recent devel­ And much of the progress symbolized by opments in financial markets and especially that leap forward has occurred during the the trend of interest rates over the past sev­ past three decades. eral years. I have frequently testified that I The technological discoveries of this pe­ would like to see interest rates as low as we riod have required extraordinarily large in­ can have them without inflation. And I vestments to be incorporated into new prod­ would add now that the way to get interest ucts and processes, and this, of course, has rates down is to end the inflation that has meant heavy demands for financing. Earlier been raising them. in the postwar period, businesses were able Let me set forth a few of my own ideas as to draw heavily on internally generated to why interest rates have risen to the pres­ funds and on stocks of liquid assets built up ent unprecedented levels, and what must be during World War II to help finance these done if we are to see a return to a level of projects. As the postwar period proceeded, interest rates consistent with satisfactory however, they had to rely increasingly on rates of investment over the long run in external sources to meet financing needs. such areas as housing and plant and equip­ High rates of investment are, as we are ment. all aware, a principal source of gains in To begin with, the current period of high productivity, in real income, and in our interest rates needs to be viewed in the standards of living. Rarely has any society longer-run perspective of interest rate trends been as fortunate as ours in realizing the over the period since World War II. While benefits of almost continuous economic there have been short-run swings in interest prosperity over the past 20 years. Per capita rates over these past two decades, in re­ disposable income in the United States, in sponse to variations in the tempo of eco­ real terms, is fully 50 per cent higher now nomic activity, several major factors have than it was at the end of World War II. And contributed to the persistent upward trend our consuming public has chosen to enjoy that we have experienced. the fruits of material progress in ways that The most important contributing factor put heavy demands on the credit markets. has been the extraordinarily high rate of Consumers have demanded more and better technological progress occurring both in the homes, and a wider and more varied stock United States and abroad. It scarcely seems of durable goods. To purchase these assets, possible that 20 years ago television sets, consumers depend significantly on mortgage synthetic fibers, and plastic containers were and instalment credit. products that existed largely in the minds Another factor in the long upward trend 326 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

of interest rates in the postwar years has think, hard to discover. Since mid-1965, ex­ been the major change that has occurred in cept for a brief respite in early 1967, we asset portfolios of financial investors. Both have had an overheated economy and grow­ institutional and other investors entered the ing expectations of inflation. Private spend­ postwar period with exceptionally large ing decisions have been influenced in fun­ holdings of liquid assets, accumulated damental ways. We received word just re­ largely as a result of wartime deficit spend­ cently that businesses are planning to raise ing. Consequently, even though interest their expenditures for plant and equipment rates were at exceptionally low levels, in­ by 14 per cent in 1969 over the 1968 level. vestors were anxious to switch from liquid While the size of the anticipated growth in assets into mortgages, consumer loans, and capital outlays was larger than many ob­ corporate and municipal securities. The servers had expected, the news that plans abundance of available loan funds held in­ for the period ahead were strong should not terest rates down in the first postwar decade, have come as a great surprise. With wages but as the backlog of liquidity was worked increasing at rates well beyond the growth off, greater interest rate incentives were re­ of productivity, with costs of capital goods quired to encourage investors to supply rising, and with expectations developed funds to finance economic expansion. over the past several years that higher costs As the postwar years unfolded, investors can sooner or later be passed on in the form also began to show heightened preferences of higher prices, why shouldn’t we expect for equity investments as contrasted with businesses to do what they can to introduce fixed-income securities. To some degree, cost-cutting methods and to put new ca­ this reflected the failure to follow stabiliza­ pacity in place at today’s prices? tion policies that might have kept inflation This recent announcement of upward re­ under better control. But it also resulted visions in business investment plans for from the degree of success we did enjoy in 1969 is a continuation of developments that avoiding the deep declines in economic ac­ became evident around the middle of last tivity that occurred prior to World War II. year, when the rate of business investment To an important degree, then, the general began to strengthen measurably, despite the upward trend in postwar interest rates has fact that rates of capacity utilization in been symptomatic of the vigor of economic manufacturing were not especially high and expansion. Yet, it seems quite clear to me stern measures of fiscal restraint had just that even in prosperous times we can have been adopted. We also experienced a large lower and relatively more stable interest rise in housing starts in the latter half of rates than prevail today. We enjoyed in­ last year, even though interest rates on terest rate developments of that kind during mortgages were at record levels—and ris­ the early years of the 1960’s. Indeed, in­ ing—while flows of funds through tradi­ terest rates on some kinds of financial as­ tional sources of mortgage finance were fall­ sets, such as mortgages, declined a little ing off. over the first 5 years of the present decade. Let us consider for a moment the cost­ But beginning about the middle of 1965, price developments that businesses and con­ the cost of credit began to rise, and we are sumers have had to take into account in still seeing increases going on today. What making their investment decisions. From the accounts for this abrupt change in the de­ middle of 1965 to the end of 1968, con­ mand-supply equation in financial markets sumer prices rose at an annual rate of 316 during the past 316 years? per cent, compared with a 116 per cent an­ The answer to that question is not, I nual rate in the previous 316 years; for 327 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN □ APRIL 1969 wholesale prices, the figures are 2 per cent rose to $13 billion, and then to $17 billion for the recent period and three-fourths of in 1968. In recent months the borrowing 1 per cent for the prior 31/2 years; for con­ needs of the Federal Government have struction costs, 416 per cent and 2 per cent; slackened appreciably as the budget has for average hourly compensation in manu­ moved into surplus in response to the meas­ facturing, 516 per cent compared with 334 ures of fiscal restraint enacted last summer. per cent; and for unit labor costs in manu­ It seems abundantly clear that interest rates facturing, 4 per cent in the past 316 years would be still higher today if those fiscal compared with no change in the prior 316 actions had not been taken. years. Is it any wonder that consumers It seems to me as I look back over these want to buy houses now to avoid paying past several years, therefore, that the major higher prices later? Should we be surprised factors forcing up interest rates stand out that businesses are trying to find some quite clearly. What we have seen is a rising method of holding down the rise in produc­ tide of inflationary pressure, fed in part by tion costs and are searching for labor-saving Federal deficit spending, generating in turn investments as a means to do so? widespread expectations of more inflation to Financing the high level of private invest­ come, mounting private demands for credit ment has increased greatly the demands on to finance additional spending, and hence money and capital markets. From 1960 to increased costs of funds. Developments 1964 nonfinancial businesses and consum­ comparable to these have occurred in many ers together borrowed new funds at an av­ other countries, and we have recognized erage rate of about $38 billion a year. Since them for what they were. But it sometimes 1965 the annual average has been $59 bil­ seems hard for us to recognize that the fun­ lion—or more than 50 per cent higher— damental economic principles of supply and and in 1968 the figure rose to $67 billion. demand apply to us—no matter how vast In the past 3 years nonfinancial corpora­ and well-endowed our country is—as well tions raised new capital through bond issues as to others. in amounts averaging nearly $13 billion a I want to note quite specifically that the year, about three times as much as during run-up in interest rates since the middle of the previous 3 years. 1965 does not stem principally from dim­ In addition to this large demand for pri­ inution in the supply of credit created by vate credit, pressures in credit markets have restrictive monetary policies. Monetary reflected heavy Federal borrowing, resulting policy has been restrictive during some in­ from our failure to adopt earlier the meas­ tervals over the past several years—from ures of fiscal restraint needed to avoid def­ late 1965 to the fall of 1966, for a brief icit financing and inflationary pressures. In period in the late spring of 1968, and then calendar 1966 Federal financing require­ again from late 1968 to the present. But in ments remained relatively modest, even surrounding periods the supply of money though expenditures rose substantially, and credit grew rapidly, and the period since revenues also increased rapidly with 1965—68 as a whole was one of rather sub­ growth in private money incomes. Conse­ stantial monetary expansion. Let me again quently, total Federal borrowing, including cite some statistics. the issues of some Government agencies and In the 4 years 1965 through 1968, total enterprises that have recently been shifted member bank reserves rose at an average to private ownership, was held to $6 billion annual rate of 6 per cent; in the prior 4 in 1966. But in 1967 the comparable figure years the average annual increase was 4 per Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 329 cent. From 1965 through 1968, total com­ in the adoption of stabilization policies that mercial bank credit rose at a 91/2 per cent will eventually accomplish those objectives. annual rate, compared with 8 per cent for Last year the Congress adopted fiscal re­ the previous 4 years. For the stock of money straint measures that altered the Federal (currency and demand deposits), the an­ budgetary position dramatically. As a con­ nual average rate of gain was 5 per cent for sequence, we can look forward to surpluses 1965-68 versus 3 per cent for 1961-64. in the Federal budget, as measured in the I do not think the degree of monetary national income and product accounts, at an restraint or ease can be summarized very annual rate of around $5 billion during the precisely in any single set of numbers such first half of this year. A year earlier the as these. But it would seem reasonable to budget—-figured on the same basis—was in conclude from these data that the rise in deficit to the tune of roughly $10 billion at interest rates over the past several years did annual rates. not result from a reduction in credit sup­ The fiscal measures enacted last summer plies, but from an exceptional rise in credit took hold a little later than we had expected, demands. and hoped for, but these measures are be­ I do not mean to argue that the interest coming effective. Nonetheless, we have rate developments of recent years have had some distance to go yet in cooling off the no relation to monetary policy. We know economy. There now seems to be little, if that, in the short run, expansive monetary any, hope that we can ease up on fiscal re­ policies tend to reduce interest rates and re­ straint in the near future; the strength of strictive monetary policies to raise them. expansionary forces is still much too great But in the long run, in a full-employment for that. The surtax will almost certainly economy, expansive monetary policies have to be continued after midyear, in my foster greater inflation and encourage bor­ judgment. Indeed, the real question now is rowers to make even larger demands on the whether fiscal policy should move another credit markets, while lenders pull back from notch in the restrictive direction, given the taking positions in fixed-income securities possibility that we may be facing a strong since they fear that both interest and prin­ capital goods boom. cipal will be eroded by rising prices. Over The start we have made in adapting sta­ the long run, therefore, expansive monetary bilization policies to the needs of the econ­ policies may not lower interest rates; in omy also includes a marked change in the fact, they may raise them appreciably. This posture of monetary policy since late last is the clear lesson of history that has been year. Monetary policies generally work with reconfirmed by the experience of the past a significant lag, in terms of their effects on several years. spending and on prices, partly because it If my diagnosis of our current interest takes time to work off excess liquidity in rate problem is correct, then it is clear what the economy. Nonetheless, the effects of we need to do to get interest rates back monetary actions show up much earlier in down to more sensible levels. We must fol­ financial markets than they do in markets low economic stabilization policies that for goods and services. bring inflation under control and continue The data in the table below provide those policies long enough to be sure that some indication of the financial effects of a resurgence of excess demand and strong the more restrictive policies in effect since cost and price pressures does not recur. late last year. The annual growth rate of the I think we have made a good beginning money stock has been reduced from about Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN □ APRIL 1969 716 per cent in the fourth quarter of last ingly. What I have called the challenge of year to about 2 per cent in the first 3 months “disinflating without deflating” can be met of 1969. For time deposits the turnaround most effectively if lenders and borrowers has been much greater since outstanding will now exercise the utmost restraint in CD’s at large banks have declined about taking on new commitments. A sincere ef­ $314 billion to $4 billion since the begin­ fort at such self-restraint will, I believe, ning of the year. As a result, total bank prove to be in the best long-run interest of credit (as measured by what we call the the individual firms themselves as well as of credit proxy, adjusted to include increased the communities and nation that they serve. Euro-dollar borrowing abroad by our Continued, unchecked inflation can be an banks) will show a small decline in the first insidious crippier of much of the best in the quarter, a marked change from the nearly American system. I think it behooves all of 12 per cent annual rate of growth experi­ us to stand resolutely against that threat. enced in the final 3 months of last year. I am reasonably confident that we are on I am confident that interest rates will turn the road to accomplishing the objectives for down again just as soon as it becomes which we are striving. We will be seeing, as abundantly clear to everyone that the fiscal the year progresses, the results of monetary and monetary authorities have no intention and fiscal policies working together to re­ of letting inflation proceed, and borrowing strain inflation for the first time in a number and spending decisions are adjusted accord­ of years. SELECTED MONETARY AND FINANCIAL INDICATORS, MARCH 24, 1969 Annual yield Annual rate of change (per cent) (weekly averages in per cent)1 Item Interest rates Q4 Jan.-Feb. QI Dec. 1968 Jan. 1969 Most 1968 1969 1969 (proj.) high low recent week 1 Total reserves............................... 8.8 4.5 .8 Federal Reserve discount rate.. 5.50 5.50 5.50 2 Nonborrowed reserves................. 3.0 5.0 1.5 Federal funds............................. 6.25 6.27 6.82 3 Money supply (currency and 3 month—■ private demand deposits)........ 7.6 2.2 1.7 Treasury bills..................... 6.21 6.07 6.02 4 Time and savings deposits at Federal agency................... 6.38 6.34 6.35 banks.............................. 15.7 -9.7 -6.7 Finance company paper.... 5.88 6.08 6.38 5 Money supply plus time de­ Euro-dollars....................... 7.33 7.31 8.51 posits ((3) + (4))............. 11.8 -3.9 -2.5 Long-term Govt, bonds............ 6.04 5.95 6.29 6 Total member bank deposits—■ Municipal bonds....................... 4.85 4.82 5.29 Credit proxy........... 12.2 -3.0 -4.7 Aaa Corporates—new issues... 6.92 6,90 7.57 7 Proxy including Euro-dollars. . . . 11.7 (2) -1.7 FHA mortgages (FNMA auc­ 8 Deposits at savings banks and tion gross yields)................ 7.65 7.66 8.08 savings and loans............ 6.5 5.2 n.a. n.a. Not available. agencies, municipal bonds, Aaa corporate new issues, and FHA 1 All interest rates are weekly averages except those for Federal mortgages, which are single-date figures. 2 Less than $50 million. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 331 Statements before the Committee on Bank­ holding companies under the Holding Com­ ing and Currency, House of Representatives, pany Act. April 18, 1969, concerning one-bank hold­ And all members of the Board agree that ing companies. public benefits in the form of greater con­ venience, gains in efficiency, and keener Statement by William McChesney Mar­ competition should flow from encouraging tin, Jr., Chairman, Board of Governors of innovation by one-bank holding companies the Federal Reserve System. as well as multibank holding companies in offering services to the public. In determin­ When I appeared before this committee last ing whether a bank holding company should September, I reported to you that the Board be authorized to engage in a particular ac­ of Governors was deeply concerned about tivity, the prospects of realizing such bene­ the rapid increase in formation of one-bank fits must be weighed against the risks of per­ holding companies, and I expressed the view verse consequences that led Congress to that this development, if unchecked, could separate banking from other businesses. affect the whole economic system of the To my mind, the greatest risk is in con­ United States. Since that time, encouraging centration of economic power. If a holding progress has been made toward legislation company combines a bank with a typical to regulate one-bank holding companies in business firm, there is a strong possibility the public interest. In weighing different ap­ that the bank’s credit will be more readily proaches, we should not overlook the very available to the customers of the affiliated wide area of agreement in Government and business than to customers of other busi­ in the banking industry on the need for a nesses not so affiliated. Since credit has be­ bill, and on the general outlines it should come increasingly essential to merchandis­ take. The Board appreciates the prompt ac­ ing, the business firm that can offer an as­ tion being taken by this committee, and we sured line of credit to finance its sales has a find much with which we can agree in both very real competitive advantage over one H.R. 6778 and H.R. 9385. that cannot. In addition to favoring the busi­ Unquestionably there is broad support for ness firm’s customers, the bank might deny the view that bank holding companies credit to competing firms or grant credit to should be congenerics, not conglomerates. other borrowers only on condition that they The Congress took steps years ago, in the agree to do business with the affiliated firm. Banking Act of 1933, to separate banking This is why I feel so strongly that if we allow from nonbanking businesses, a policy that the line between banking and commerce to was reinforced by the Bank Holding Com­ be erased, we run the risk of cartelizing our pany Act of 1956 as to companies that own economy. My concern is that just as we have two or more banks. Under Section 4 of the seen the country’s largest banks joining the 1956 Act, such companies are limited to new wave of one-bank holding companies, banking and closely related activities. The we could later see the country’s business Board unanimously agrees that there are firms clustering about banks in holding com­ sound reasons for separating banking and pany systems in the belief that such an affili­ commerce, and that it is essential, if this ation would be advantageous, or perhaps policy is to continue, to bring one-bank even necessary to their survival. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN □ APRIL 1969 This is, of course, an antitrust problem, and surplus for any one affiliate, and to 20 not simply a banking problem. But I do not per cent for all affiliates. And it requires think it follows that it should be left to the that credit to affiliates be secured by ade­ antitrust laws rather than the banking laws. quate collateral. But Section 23A does not I hesitate to comment about an area in apply to credit extended to customers of af­ which others, particularly Assistant Attor­ filiates, and so it is ineffective in protecting ney General McLaren, are more competent against the risks I have been discussing. It to speak. But I see no reason to rely solely probably is not feasible to draft legislation on case-by-case litigation under the anti­ that would deal adequately with the many trust laws to prevent affiliations between subtle but powerful pressures that would banks and business where a strong anticom­ arise in those areas if banks had many com­ petitive potential exists. In the Bank Hold­ mercial affiliates. ing Company Act, the Banking Act of In addition to the effect on competition 1933, and Section 8 of the Clayton Act— and on sound banking, we should bear in to cite a few examples—the Congress has mind a problem that has appeared from chosen, instead, to prohibit outright particu­ time to time throughout the history of hold­ lar kinds of affiliations involving banks, ing companies of all kinds. That is, there is a largely because of concern over preserving risk that the management of the holding competition. company may become more interested in Considerations of safety and soundness obtaining access to larger and larger pools reinforce the policy of separating banking of funds for greater and greater expansion and other businesses. A bank should be in­ than in the efficient operation of the sub­ sulated from pressures that might lead it to sidiaries. Holding companies at times in the favor customers of affiliated businesses in its past have accepted the lure of operating and credit decisions. Otherwise, the bank might of reporting so as to influence the company’s build an unbalanced loan portfolio by dis­ current stock price rather than its long run counting an excessive amount of obligations profitability. I am happy to report that hold­ of such customers or a low-quality portfolio ing companies now registered under the by accepting substandard risks to foster Bank Holding Company Act have not en­ sales to such customers. An essential part of gaged in these practices or the kinds of the traditions of bank management has been pyramiding and watering of stock that led a scrupulous observance of the need for to the collapse of some earlier holding com­ prudence in handling funds entrusted to the panies. On the contrary, in general they are banks by its customers; if management were soundly capitalized, without unnecessary to become oriented toward the different ob­ complexity in their capital structures, and jectives of other businesses, this tradition their fixed obligations bear a reasonable could be seriously weakened. relationship to equities. The principal Section 23A of the Federal Reserve Act reason, we can assume, is that responsible now affords a considerable measure of pro­ and capable people have been in control of tection against excessive extensions of credit the registered bank holding companies. But by a bank directly to any of its affiliates. in addition the Board has been able to exer­ Broadly speaking, Section 23A limits such cise a healthy influence over the financial credit to 10 per cent of the bank’s capital structure of these companies in passing upon Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 333 applications under the Act. Prudence sug­ Act prohibits a bank holding company from gests that similar precautions should be acquiring shares of any company that is not taken for one-bank holding companies. a bank. There are 10 exceptions to this gen­ Just as there is wide agreement that bank eral prohibition, one of which, Section 4(c) holding companies should not be conglom­ (8), permits acquisition of shares of any erates, there is also general acceptance of company all of whose activities are of a fi­ the view that public benefits may be derived nancial, fiduciary, or insurance nature and from allowing banks to join holding com­ which the Board, on the basis of a hearing, pany systems engaged in what may be called has determined to be so closely related to “related” or “congeneric” activities. These the business of banking, or of managing or terms are hard to define, and they mean controlling banks, as to be a proper incident different things to different people. But I use thereto and as to make it unnecessary for them in the sense of services that are func­ the prohibitions of Section 4 of the Act to tionally related to the activities of banks in apply in order to carry out the purposes of such a way that the combination will offer the Act. benefits to the public in the form of lower On the basis of the language of the statute costs or better service. I do not mean to and its legislative history, the Board has suggest that all such activities should be interpreted the 4(c)(8) exemption to mean automatically authorized. Rather, there that there must be a direct and significant should be safeguards, which I will return to connection between the proposed activities later, designed to ensure that entry by bank of the company to be acquired and the busi­ holding companies into these areas will in­ ness of banking, or of managing and con­ crease competition rather than lessen it. trolling banks, as conducted by the bank Combining banks with related businesses holding company or its banking subsidi­ may lead to economies of scale in produc­ aries. For example, Section 4(c)(8) has tion, distribution, sales, research, and fi­ been interpreted to authorize bank holding nance. In the production area, economies of companies to acquire subsidiaries that issue scale will depend mainly on the similarity insurance or act as insurance agents where of the services offered, such as servicing a the insurance is related to the business of checking account and processing a payroll. subsidiary banks, as shown by percentages People appreciate the convenience of being of premium income derived from insurance able to buy insurance on a new car at the written in connection with bank transac­ same time they arrange for bank financing; tions or for bank customers. In those cases combining the two services also may lower in which the Board has interpreted Section sales costs. A research staff, too expensive 4(c)(8) as permitting a bank holding com­ for a bank alone, can pay dividends when pany to establish a subsidiary “insurance the expenses and services are shared with company,” as distinguished from an insur­ others in a holding company system. And a ance agency, 100 per cent of the insurance holding company may be able to obtain was written in connection with loans by the capital less expensively by going to market subsidiary banks. The acquisition by a bank less frequently than any of its smaller com­ holding company of a subsidiary conducting ponents. a general insurance underwriting business is Section 4 of the Bank Holding Company prohibited. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN □ APRIL 1969 The Board believes that a bank holding should be required before a holding com­ company should be permitted to acquire a pany may establish a subsidiary to engage in subsidiary, subject to regulatory approval the activity. Guidelines governing such ap­ and supervision, to engage in “related” proval should take into account the com­ activities without showing such a close con­ petitive and other factors already specified nection between the business and that of a in the Act as to acquisitions of banks. Ap­ subsidiary bank. Permissible acquisitions proval should be required whether the ex­ might include, for example, companies en­ pansion is by establishing a new company or gaged in the business of lending funds on acquiring an existing one, but it should be their own account; investing in equities, sub­ recognized that the probability of anticom­ ject to careful limitations, to assist in the petitive consequences appears greater in economic development of low-income areas acquisitions of existing concerns than in de or to meet other pressing needs for financ­ novo entry. Another reason to favor de novo ing that cannot be met adequately through entry over acquisitions of established busi­ debt instruments; acting as insurance agent nesses is that a company newly entering a or broker or as insurer in connection with market to face the competition of those al­ extensions of credit by other subsidiaries of ready in it must meet the test of efficiency the holding company; providing accounting that such a market imposes. And an appli­ or data processing services; acting as fiduci­ cant proposing an acquisition involving a ary; and acting as travel agent. relatively large amount of nonbank assets Bank holding company acquisition of should ordinarily bear a greater burden of companies engaged in most of these activi­ proving that the acquisition is not contrary ties is now permissible to some extent, under to the public interest. Section 4(c)(8) or under other paragraphs Another safeguard that should accom­ of Section 4(c). But Section 4(c)(8) re­ pany expansion of bank holding company quires that a formal hearing be held before activities is a prohibition against so-called a hearing examiner on each application “tie-in” arrangements. Where a bank hold­ thereunder, even in the absence of any in­ ing company may achieve economies of terest or testimony by anyone other than the scale by combining one service with another, applicant. This is a time-consuming and ex­ an opportunity may also be presented to pensive procedure, which should be limited force sales of one service upon customers to instances where a hearing is requested by who wish to buy the other. We understand an interested party. And as I mentioned, we that such forced sales are already prohibited believe that Section 4(c)(8) should be by the Sherman Act, but probably not the amended to eliminate the reference to close Clayton Act, since the relevant provision relationship of the proposed activity to the of that Act (Section 3) relates to commodi­ business of the subsidiary banks, which we ties rather than services. In any event, we regard as unnecessarily constricting. believe that any ambiguity as to the applica­ I mentioned earlier that expansion of bility of such laws to the services offered by activities by bank holding companies should banks and their affiliates should be elimi­ be subject to safeguards. After it has been nated. We prefer the language of H.R. 6778 decided that a particular activity is “related” to that of H.R. 9385 on this point, since or “congeneric,” administrative approval H.R. 6778 would retain the traditional tests Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 335 of anticompetitive effects and would apply has become a loophole of such magnitude to all insured banks, whether or not they are that unless it is closed there is no possi­ subsidiaries of holding companies. bility of effectively enforcing the Act’s re­ I want to say a few words now about the trictions on combining nonbanking busi­ problem of holding companies that have nesses with banking through holding com­ been in existence for some time. The Board panies. recognizes that the Congress in the past has One way to close this loophole without felt that coverage of one-bank holding com­ making it more difficult to hold or form panies would conflict with the objective of small independent banks, and without forc­ fostering local ownership of small unit ing the sale of large numbers of such banks banks. Until quite recently, the overwhelm­ —the concerns expressed in the Senate com­ ingly majority of one-bank holding com­ mittee report in 1966—would be to exempt panies owned small banks, which were com­ small holding companies. An exemption for bined with even smaller interests in non­ companies with banking assets of less than banking businesses. $30 million and nonbank assets of less than When the Bank Holding Company Act $10 million would not seriously weaken was under consideration in the early 1950’s, the protection this legislation is designed to the Board recommended that the principle provide, while it would recognize that di­ of limiting the activities of bank holding vestiture would be particularly difficult for companies to fields closely related to bank­ small, closely-held holding companies. Im­ ing should apply to holding companies that posing a smaller limit on nonbanking assets own only one bank as well as to those that than on banking assets would offer reason­ own two or more. The Congress disagreed, able assurance that this exemption would and exempted one-bank holding companies. not be exploited by those whose principal Again in 1966, the Congress rejected a motivations were to advance their interests House-passed amendment that would have in nonbanking businesses. At the same time, covered one-bank holding companies. The it must be recognized that there is an ele­ Senate committee report expressed concern ment of arbitrariness in drawing a line at over the possibility that “repeal of the ex­ $30 million, or any other figure. About 85 emption would make it more difficult for per cent of the one-bank holding companies individuals to continue to hold or to form in existence last September 1 had deposits small independent banks,” adding that “re­ of less than $30 million. peal of the exemption would, therefore, be An alternative approach would be to base likely to result in causing the forced sale of the exemption not on size but on date of large numbers of banks and in a diminution acquisition—a “grandfather” clause. A ma­ of competition rather than an increase in jority of the members of the Board prefer competition.” this approach; it is the approach taken by Since then, of course, the situation has H.R. 9385. A “grandfather” clause poses changed drastically. No longer is the one- administrative problems, particularly in bank exemption a minor exception to a gen­ determining whether a “grandfather” com­ eral rule. The assets of one-bank holding pany is engaging only in those activities in company banks now exceed those of the which it was engaged on the cutoff date. banks covered by the Act. The exemption But we can hope that the problems will be Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN □ APRIL 1969 manageable. And we can see that the larger These regulations should also be applicable one-bank holding companies that were in to nonbank acquisitions by multibank hold­ existence for some time before the recent ing companies. Such an arrangement would wave of new formations began (generally be acceptable to a majority of the Board. accepted as July 1, 1968) may legitimately While we believe that vesting in the Board claim that they are entitled to special con­ or another Government agency exclusive sideration as well as the small companies. authority to administer all phases of the I come now to the difficult question of Bank Holding Company Act would best where responsibility for regulating one-bank serve the interest of administrative efficiency, holding companies should be lodged. The we recognize that others are more impressed Board believes that it would be most effec­ with the arguments for dispersing this au­ tive for one agency (preferably the Board) thority in the traditional banking pattern. to administer the Bank Holding Company You can judge better than I whether the de­ Act with respect to the holding companies sire for dispersal is strong enough to block themselves and with respect to the approval legislation that would vest authority over of acquisitions by them. Holding companies one-bank holding companies exclusively in are not banks. As I mentioned earlier, the Board. But in view of this possibility, I supervision of holding companies entails should point out that most Board members considerations that extend well beyond those believe that the need for this legislation is involved in supervising banks. The proposed too pressing to allow its passage to be jeop­ changes in Section 4(c)(8) will be break­ ardized by considerations of administrative ing new ground. Under the best of circum­ efficiency. It seems clear to the majority of stances an orderly move into new spheres the Board that it would be better to enact a for holding company activity will be diffi­ bill incorporating the administrative provi­ cult. The development of these new areas by sions of H.R. 9385 than to wind up with no unanimous agreement of three different bill at all. agencies on complex ground rules is apt to Let me now review briefly the Board’s prove slow and cumbersome. And it is hard­ recommendations as to other provisions of ly the best way to achieve the uniformity the two bills. needed for competitive equality. The Board We favor broadening the tests of control, believes that the existing precedent estab­ as both bills would do, to cover situations lished in 1956 under which bank holding where control is exercised in fact through companies are supervised by the Board ownership of less than 25 per cent of the would ensure the greatest efficiency and voting stock. To assist in such determina­ equity. tions, we recommend that you include pro­ Alternatively, and less desirably, author­ visions establishing a rebuttable presumption ity over one-bank holding companies might that control exists where a company (1) be dispersed among the three banking owns 10 per cent of the voting shares of two agencies with a requirement that regulations or more banks or (2) owns 5 per cent of be jointly promulgated as to permitted non­ the voting shares of three or more banks. bank lines of activity and containing guide­ In view of the recent use of the partner­ lines as to acquisitions that would be pre­ ship form to bring several banks in Michi­ sumed to be against the public interest. gan and one in the District of Columbia un- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 337 der common control, the definition of “com­ acquired after March 1, 1969, unless reten­ pany” should be extended to cover partner­ tion is approved under the new legislation. ships. Such a provision should prove useful in fore­ H.R. 6778, as we read it, would require a stalling a possible race to acquire banks bank that held in its trust department a con­ before regulatory legislation can be enacted. trolling interest in the stock of another bank The provisions of H.R. 9385 allowing to register and file reports under the Act; one-bank holding companies to continue to but such a bank could continue to acquire acquire nonbanking businesses if they divest stocks of other banks in a fiduciary capacity their bank by June 30, 1971 (with possible without Board approval, in view of the extensions to June 30, 1974) seem a reason­ exemption in Section 3 of the Act, which able extension of the principle already in­ would be retained. The Board believes that corporated in Section 4 of the Act. Section 4 something beyond registration and report­ now allows 2 years (with possible extensions ing is needed to assure that acquisitions up to 5 years) for a holding company to di­ through trust accounts are not used to avoid vest either its banks or its nonbanking busi­ the limitations the Act imposes on concen­ nesses. Those one-bank holding companies tration of banking. Outright repeal of the that choose to divest their bank and keep exemption in Section 3, however, would their nonbanking businesses should be al­ interfere too drastically with banks’ ability lowed to expand while they are in the proc­ to offer needed fiduciary services. We rec­ ess of divesting the bank. ommend, instead, that the exemption in H.R. 6778 would repeal the exemption Section 3 be limited, as to bank stock, to for labor, agricultural, and horticultural or­ cases where the trustee bank obtains voting ganizations in Section 4(c) of the Act; the instructions from the beneficiary, thus fol­ Board has repeatedly recommended that this lowing the precedent established in Section be done. 5144 of the Revised Statutes as to national We also recommend that the exemptions banks’ voting their own stock held in trust. in Sections 4(c)(5) and 4(c)(9) be We also recommend elimination of an­ amended as provided in H.R. 9385 so as to other exemption in Section 3 of the present preclude the possibility that a bank might Act. It now permits a bank holding com­ establish a holding company to acquire a pany to acquire up to 5 per cent of the stock foreign bank without obtaining Board ap­ of a bank without Board approval. Since a proval, which would be required under holding company may obtain a significant Section 25 of the Federal Reserve Act if the influence over a bank, without actually con­ bank made the acquisition directly. trolling it, by buying less than 5 per cent of H.R. 6778 would also transfer to the its stock, we believe the purposes of the Act Board jurisdiction over all mergers where would be better effectuated if every acquisi­ the resulting bank is a subsidiary of a hold­ tion of bank stock by a holding company re­ ing company. As we did in 1966, the Board quired prior approval of the Board. Ac­ favors transfer of such jurisdiction as to cordingly, we recommend elimination of the holding companies that control two or more 5 per cent exemption in Section 3. banks. H.R. 6778 would also prohibit any H.R. 9385 would prohibit any one-bank merger of a subsidiary bank outside the holding company from retaining any bank holding company’s home state; we suggest Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

338 FEDERAL RESERVE BULLETIN □ APRIL 1969 that prohibition be relaxed to allow such a interlocks between a bank and a securities merger where necessary to save a failing company, we think an exemption (as is now bank. We recommend against transferring provided in Section 32 of the Banking Act the other matters referred to in H.R. 6778 of 1933) should be authorized for classes of (reductions in capital of a nonmember in­ relationships that would not result in undue sured bank in a holding company system influence of the investment policies of banks and conversions by a subsidiary national or the advice they give their customers re­ bank to a nonmember insured bank). garding investments. Section 2(f) of H.R. 6778 would require I have dealt with these numerous details insured banks to file quarterly reports with in order to be as responsive as I can to the the Securities and Exchange Commission variety of issues posed by the proposed legis­ listing securities held in trust accounts. We lation and the developments to which it is believe that action in this area should be addressed. In closing, however, I want to re­ postponed until the matter can be handled emphasize the basic purpose of the bill. It uniformly and comprehensively after SEC would be lamentable if protracted wrangling completes its current study of the activities over the many subsidiary points in this of institutional investors. matter bogged down the legislative process. The remaining provisions of H.R. 6778 To forestall holding company developments prohibit interlocking relationships among that will be increasingly painful to reverse, insured banks, insurance companies, and we need a law now—as good a one as can securities brokers and dealers. The Board reasonably be devised—bearing in mind now administers the prohibition against in­ that it can be revised later if necessary in the terlocking relationships between a member light of experience. bank and another bank (Section 8 of the I know you gentlemen are aware of these Clayton Act) and between a member bank considerations, and I want to express the and a securities company (Section 32 of the Board’s deep appreciation for the active Banking Act of 1933). We think limitations interest this committee has shown in seeking on interlocking relationships between com­ peting institutions are salutary and the exist­ a timely and constructive solution to what is ing provisions are deficient in a number of a complex and pressing problem. For our respects; for example, we see no reason to part, the Board will be glad to do anything it limit them to member banks, or to banks in can to facilitate your efforts to move such the same town or adjacent towns. We favor legislation through the Congress. expanding the scope of the prohibitions against interlocks to include the classes of institutions set forth in H.R. 6778, although Statement by J. L. Robertson, Vice Chair­ we see no reason to apply such prohibitions man, Board of Governors of the Federal to persons engaged exclusively in the bro­ Reserve System. kerage business. We think some agency should be authorized to exempt classes of cases where the risks would be slight, such I heartily endorse President Nixon’s recent as where the companies involved are neither statement urging that one-bank holding actual nor potential competitors. And as to companies be brought under the Bank Hold- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 339 ing Company Act of 1956, and largely for of Governors of so-called “holding com­ the same reasons he voiced—to avoid ero­ pany affiliates” of member banks. sion of the traditional separation of powers The regulation provided by the 1933 between suppliers of money (banks) and Banking Act proved inadequate. Except users of money (commerce and industry), that it could not engage in the securities and to preclude the concentration of eco­ business, a holding company affiliate of a nomic power in a few hands. member bank was not precluded from en­ gaging in a variety of nonbanking enter­ BACKGROUND prises; the law required only that the hold­ Lest we forget the lessons of the past, it is ing company obtain a voting permit from worthwhile to review the historical back­ the Board in order to vote the stock of banks ground. The one-bank holding company controlled by it. device is not new. In the 1920’s and early In its 1943 Annual Report to Congress, 1930’s banks utilized the corporate device the Board expressed concern over the as a means by which to engage in forbidden growth of conglomerate bank holding com­ nonbanking activities. This was dramatical­ panies. Among other things, the Board ly disclosed in hearings conducted by the stated: Senate Banking Committee from January Accepted rules of law confine the business of 1933 to July 1934—the so-called “Pecora banks to banking and prohibit them from engaging Investigation,” after Ferdinand Pecora, in extraneous businesses such as owning and oper­ Chief Counsel of the Committee. ating industrial and manufacturing concerns. It is During that investigation, the heads of axiomatic that the lender and borrower or potential borrower should not be dominated or controlled by the largest New York City banks freely ad­ the same management. In the exceptional case, the mitted that affiliates had been organized for corporate device has been used to gather under the avowed purpose of enabling their insti­ one management many different and varied enter­ tutions to engage in operations that were prises wholly unallied and wholly unrelated to the prohibited to the banks themselves. The conduct of a banking business. Committee’s Final Report, referring to the Two years later, in 1945, the Board use of the holding company device, con­ recommended a bill to provide for control cluded: of bank holding companies, both with re­ Possessed with this instrumentality that enabled spect to their expansion in the banking field these banking institutions to conduct a business and and with respect to their interests in non­ indulge in practices which governmental authority banking businesses. During the next 10 through legislative enactment had forbidden to years, the Board consistently supported commercial banks, these banking institutions, in­ fected with speculative fervor, indulged in prac­ legislation based upon a one-bank definition tices and transactions which had the direst con­ of a bank holding company. In testifying on sequences. one of those bills in 1953, I made this state­ ment regarding the logic of covering one- Even before the Pecora Investigation was bank as well as two-bank holding com­ completed, provisions of the Banking Act panies: of 1933 required the separation of member banks from securities companies and pro­ If there is merit in the proposal that you should vided for limited regulation by the Board separate banking from nonbanking businesses, it is Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN n APRIL 1969 just as important that you do it in a 1-bank case as sources of $30 million, let us say, the Act in a 2-or-more bank case. would have required it to terminate its non­ For example, if a holding company controls, we banking activities and to dispose of the will say, the largest bank in the world, and has stock of any nonbanking subsidiaries (ex­ nonbanking interests, it may be even more im­ portant to cover that sort of a situation than one cept to the extent permitted under the where a holding company has 2 or 3 or 4 little exemptions prescribed in Section 4(c) of banks and some nonbanking businesses. the Act). Certainly whatever risks to the economy inhere in common corporate own­ Nevertheless, as finally enacted in 1956, the ership of nonbanking subsidiaries and two Holding Company Act excluded one-bank banking offices with $30 million of resources holding companies from its coverage. are at least equally significant where a corp­ As a matter of equity and logic, the oration with extensive nonbanking interests Board, since 1956, has consistently recom­ also controls one billion-dollar bank with mended one-bank holding companies be scores of branch offices. brought under the law. Only in the past year In 1956 Congress required holding com­ or so, however, has the need for such action panies to divest themselves of nonbank en­ become conspicuously more than a matter terprises that had been held long before the of logic. Reminiscent of the situation spot­ first whisper of the idea of governmental lighted by the Pecora investigation, num­ regulation of bank holding companies. The erous one-bank holding companies have reason was the threat of potential evils in been organized by banks in recent months common ownership, and that danger is solely to enable such banks to engage in­ equally present in one-bank holding com­ directly in activities in which they cannot panies. It might also be noted that in 1966 engage directly. Congress expanded the Act to cover, for the first time, the Financial General Cor­ GRANDFATHER CLAUSE poration system and certain trust situations Both H.R. 6778 and H.R. 9385 would ex­ (for example, the duPont Estate). Even pand the scope of the Act to cover one- though those organizations had expanded bank holding companies. However, the lat­ their nonbank interests during the preceding ter would permit such companies to retain decade in reliance on their “exempt” nonbank interests held by them on June 30, status, Congress required them to divest all 1968. In my opinion, such a “grandfather nonbank interests, without benefit of any clause” has no justification—either in logic permanent “grandfather” privileges. I can or from the standpoints of principle and see no reason for adoption of a different practicality. policy in 1969. Principle. Potential or actual conflicts of Practicality. It is questionable whether any interests are present regardless of whether effective grandfather clause could be de­ the holding company controls just one bank vised. For example, H.R. 9385 would for­ or controls two or more banks. To illustrate, bid a company within the grandfather clause a few years ago a large nonbanking corpora­ to engage in any “business or activities” tion purchased a $1 billion bank. If that other than those in which it was engaged on corporation had acquired, instead, two small the cut-off date—June 30, 1968. I have in neighborhood banks with aggregate re­ mind an existing corporation that owns more Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 341 than a 25 per cent interest in a large national EXPANSION OF POWERS OF BANKS AND HOLDING COMPANIES bank, and is, therefore, a one-bank holding company. It also is engaged, through subsi­ I do not wish to imply that I believe banks diaries, in oil production, refining, and or holding companies should be kept in a marketing; natural gas production and pro­ strait jacket. Certainly they should be per­ mitted to offer new services—but such cessing; chemical manufacturing; producing services should be banking services. For paper board and packaging products. It also example, I believe that it is appropriate for owns an office building, a commercial park­ banks to be in the credit card business. The ing lot, and an insurance company. Being use of credit cards represents a modern engaged in exploration for oil and gas in method by which credit is extended. Since certain areas of Colombia and Nigeria, banks are principally engaged in the busi­ would the grandfather clause permit it to ness of extending credit, enabling legislation engage in exploration in other parts of was unnecessary. those countries, or in Ghana or Indonesia? However, when Congress has clearly Would its chemical manufacturing com­ limited the powers of banks, they should not pany be permitted to develop new products? be permitted to circumvent such limitations May its insurance company, which pres­ either through subsidiary corporations or ently engages in life, health, and accident through affiliation in a holding company insurance principally in one State, for the system. If the limitation is to be removed holding company’s employees, expand into or modified, it should be by congressional new markets? action. Before Congress does act to alter If the answer to such questions is affirm­ a limitation, it should decide whether the ative (and a negative answer to some of proposed activity is appropriate for banks them would be ludicrous), the grandfather to engage in directly. If so, the law should clause actually would constitute a broad be changed in order that they may do so themselves, as well as through a subsidiary exemption permitting holding companies to or through an affiliate in a holding company. expand their nonbanking operations. Only if In other words, I believe that it is unde­ such a company sought to enter a line of sirable to consider in isolation a proposed commerce totally unrelated to its business expansion of the types of activities in which last June might there be a problem with the a holding company may engage—which Holding Company Act. On the other hand, H.R. 9385 would do under a broad delega­ if the answers to such questions were nega­ tion of authority by the Congress to the tive—that a company could conduct only supervisory agencies. Consideration should those precise operations that it was engaged be given at the same time to whether the in on the cut-off date, or could engage in powers of banks should be expanded di­ such additional business only with prior rectly or through subsidiary corporations. governmental approval—the situation The desirable procedure, from my point of would become operationally impossible view, for effecting any expansion of the from the standpoint of a company and its business of banking that Congress might subsidiaries and administratively impossible consider appropriate is to amend Section from the standpoint of the Government. 5136 of the Revised Statutes relating to the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN □ APRIL 1969 powers of national banks. To the extent not one that banks should be permitted to any such amendment would authorize such engage in directly or through a subsidiary banks to invest in stock, it would automati­ corporation, I question whether a bank hold­ cally remove Federal limitations on the in­ ing company should be permitted to en­ vestment powers of State member banks gage in the activity. As I pointed out last and permit holding companies, under Sec­ week in St. Louis, banks should not “foray tion 4(c)(5) of the Holding Company Act, from a protected sanctuary to compete to invest in stock of the kinds made eligible (either directly or via an affiliate) with en­ for investment by national banks. terprises which operate in a free-entry en­ In determining whether additional bank­ vironment and which must use banking ing activities should be permitted, the basic services.” There might be situations, how­ questions should be whether it (1) is part ever, where the only reason that an activity of the evolutionary growth of banking and is inappropriate for a bank to engage in (2) yields benefits to the public interest in directly is the undue risk that would be the form of more efficient and economical placed on depositors’ funds. In those situa­ service. Before extending the powers of tions I would favor permitting the bank to banks, Congress should assure itself that perform the activity through a whollythere are adequate safeguards against poten­ owned subsidiary or an affiliate in a holding tial evils. This might require accompanying company system. Courts ordinarily respect legislation designed to protect against such the separateness of corporate entities in the matters as undue concentration of economic event of insolvency, and accordingly de­ power, anticompetitive tie-in arrangements positors’ funds are less at risk when a bank —which are specifically covered in both engages in business through subsidiaries and bills here under consideration—and a de­ affiliates. cline in the quality of services or credit. After evaluation of the benefits and risks FRAGMENTATION OF ADMINISTRATION of a particular activity and the necessary OF THE HOLDING COMPANY ACT safeguards, those areas in which the con­ siderations favor bank entry should be spec­ If I fail to convince you of anything else, I ified by statute—or, in the alternative, the hope that I can succeed in buttressing what task could be specifically delegated to an must be your reaction to the provisions of administrative agency, subject to whatever H.R. 9385 by which authority to administer guidelines the Congress considers appro­ the Holding Company Act would be frag­ priate. mented among the Board, the Federal Generally speaking, I personally do not Deposit Insurance Corporation, and the favor forcing banks into a holding company Comptroller of the Currency. system as a condition for engaging in an ac­ Perhaps the most important substantive tivity. Rather I believe that bank holding legislation that the 91st Congress has so far companies—like “operations subsidiaries” enacted extends the President’s authority —should be regarded principally as a Con­ with respect to reorganization of Federal venient alternative organizational arrange­ agencies (P.L. 91-5). In that legislation, ment for performing activities that banks “Congress declares that the public interest may perform themselves. If the activity is demands the carrying out” of the following Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 343 purposes (set forth in Section 901 of Title with guidelines agreed upon unanimously. 5 of the United States Code): The requirement for unanimous agreement as to activities of companies in which hold­ (1) to promote the better execution of the laws . . . and the expeditious administration of the public ing companies may invest and as to guide­ business; lines for approval of such investments would, (2) to reduce expenditures and promote econ­ in my opinion, simply lead to an impasse in omy to the fullest extent consistent with the effi­ many instances, with the result that no action cient operation of the Government; could be taken and the purposes of the legisla­ (3) to increase the efficiency of the operations of the Government to the fullest extent prac­ tion could be defeated—or in desperation the ticable; agencies would work out a compromise (4) to group, coordinate, and consolidate based on the lowest common denominator. agencies and functions of the Government, as Viewed realistically, a more fundamental nearly as may be, according to major purposes; shortcoming is that even the best regulations (5) to reduce the number of agencies by con­ solidating those having similar functions under a and guidelines are subject to interpretation. single head . . . ; and Inevitably, one agency would take a more (6) to eliminate overlapping and duplication of “liberal” view than another. Despite the re­ effort. quirements of unanimity on types of activi­ These are the words of the Congress of ties, and guidelines, in the end a single the United States. Consistent with the policy agency would have the authority to act. If of that legislation I have for several years the applicant were a one-bank holding com­ urged the unification of Federal bank super­ pany and did not like the result, it might vision in a Federal Banking Commission. As convert the bank’s charter and try another Chairman Martin told you when we were agency. If the applicant were a plural-bank here together last fall to discuss the Board’s company, it might be able to shift from the change of position on “operations subsid­ jurisdiction of one agency to another by iaries” and “loan production offices,” I converting one of its banks from State to would enjoy making a speech on the Fed­ national, or vice versa. eral Banking Commission, and I would be In my view it would be unwise for Con­ glad to come back here at any time and do gress to saddle the bank supervisory agen­ so. Today, I shall limit myself to pointing cies with the responsibility of trying to make out that the fragmentation of administration workable a fragmented administration of the of the Holding Company Act that would Holding Company Act, such as is proposed result from enactment of H.R. 9385 is a in H.R. 9385. In 1963, in testifying before step in exactly the opposite direction. It your Subcommittee on Bank Supervision on would be contrary to the policy and pur­ the proposed unification of Federal bank poses of the legislation relating to executive supervision, I asked: “Why should we con­ reorganization. tinue to muddle along with such an awk­ The fragmentation in H.R. 9385 is not ward, inefficient, expensive arrangement, made unobjectionable by the requirement rather than adopt a simple and obvious that three agencies unanimously agree on solution that is better in every respect?” the types of new activities in which holding Surely Congress does not want to make companies may engage and by the require­ Federal supervision even more clumsy and ment that the agencies act in accordance ineffective than it is already. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN □ APRIL 1969 It has been said that the dispersal of au­ (1) One-bank holding companies should thority among the agencies merely follows be brought within the Holding Company the traditional pattern of legislation in the Act; banking field. In fact, however, H.R. 9385 (2) There is no justification for a “grand­ would introduce for the first time a frag­ father clause”; mentation of authority for regulation of (3) The powers of banks—as well as of bank holding companies. Even if one sub­ holding companies—should be expanded to scribes to tripartite Federal supervision of the extent Congress considers appropriate; banks, the division of authority proposed and in that bill is not within that pattern. We are concerned here not with supervision of (4) Administration of the Holding Com­ banks but with supervision of bank holding pany Act should continue to be vested in a companies—a responsibility that heretofore single agency. has been vested in a single agency. H.R. 6778 is consistent with these views. CONCLUSION I recommend its approval with the modifi­ To summarize my views on the major cations suggested in the last few pages of issues: Chairman Martin’s statement. □ 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 Com­ mittee at each meeting, in the form in which they will appear 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 deci­ sions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial condi­ tions are based on the information that was available 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 pub­ lished in the Bulletins for July 1967 through March 1968. Records for the meetings held in 1968 were published in the Bul­ letins for April 1968 through March 1969. The record for the meeting held on January 14, 1969, follows: 345 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN □ APRIL 1969 MEETING HELD ON JANUARY 14, 1969 Authority to effect transactions in System Account. According to the preliminary Commerce Department estimates, ex­ pansion in real gross national product moderated to an annual rate of 3.8 per cent in the fourth quarter of 1968 from 5.0 per cent in the third quarter and more than 6 per cent in the first half of the year. However, the pace of advance in average prices—as measured by the GNP deflator—increased in the fourth quarter. Staff projections suggested that the rate of expansion in economic activity would slacken further in the first half of 1969. Growth in consumer spending slowed sharply in the fourth quarter as the increase in disposable income remained moderate and the rate of personal saving rose. Growth in Federal outlays on goods and serv­ ices continued to slacken. At the same time, the rate of business inventory accumulation increased substantially, and both business spending on plant and equipment and residential construction outlays advanced considerably. In December retail sales declined markedly—perhaps partly because of an influenza epidemic—and reached their lowest level since the spring of 1968. However, industrial production and nonfarm payroll employment continued to rise rapidly, and the unemployment rate remained at the low level of 3.3 per cent to which it had fallen in November. With tight conditions persisting in labor markets, average wage rates in all major industry groups advanced considerably further. Average wholesale prices of industrial commodities rose during the month ending in mid-December to a level 2.5 per cent above a year earlier, and an unusually large number of increases in such prices were announced subsequently. The consumer price index advanced substantially further in November and was 4.8 per cent above its year-earlier level—the largest increase in any 12-month period since 1951. The staff projections for the first half of 1969 suggested that in­ creases in consumer spending would remain moderate—partly be­ cause of the effects on disposable income of higher social security taxes and retroactive payments on 1968 income taxes—and that the rate of inventory accumulation would decline as businesses adjusted Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 347 to the slower growth in final sales. It appeared likely that there would be little further rise in Federal outlays, with a sizable surplus emerging in the fiscal position of the Government, and that residential construc­ tion activity would be increasingly limited by the reduced availability of mortgage funds. On the other hand, prospects were for continued rapid growth in business capital outlays. With respect to the U.S. balance of payments, in the last week of December there was an exceptionally large volume both of foreign official transactions that reduced U.S. liquid liabilities and of inflows of private funds, including a sizable volume of funds drawn from the Euro-dollar market by direct-investment affiliates of U.S. corporations. These inflows were large enough to produce a substantial, although probably temporary, surplus in the fourth quarter in the payments bal­ ance on the liquidity basis of calculation.1 The surplus on the official reserve transactions basis was lower in the fourth quarter than in the third, in part because there was a year-end decline in Euro-dollar li­ abilities of U.S. banks to their foreign branches as a counterpart of the private capital inflows. In early January liabilities to foreign branches increased sharply and interest rates in the Euro-dollar market, which had reached record levels in late 1968, rose further. For the full year 1968, despite a sharp deterioration in the mer­ chandise trade balance, there was a small surplus in the over-all pay­ ments balance on the liquidity basis and a larger one on the official settlements basis; on both bases, substantial deficits had been incurred in 1967. While data were still preliminary and incomplete, it appeared that the elements making for the shift to surplus in 1968 included a heavy volume of foreign private long-term investment in the United States, particularly in equity securities; a reduction in net use of U.S. funds for direct investment abroad that was apparently larger than 1 The balance on the “liquidity” basis is measured by changes in U.S. reserves and in liquid U.S. liabilities to all foreigners. The balance on the “official reserve transactions” basis (sometimes referred to as the “official settlements” basis) is measured by changes in U.S. reserves and in liquid and certain nonliquid liabili­ ties to foreign official agencies, mainly monetary authorities. The latter balance differs from the former by (1) treating changes in liquid U.S. liabilities to foreign­ ers other than official agencies as ordinary capital flows, and (2) treating changes in certain nonliquid liabilities to foreign monetary authorities as financ­ ing items rather than ordinary capital flows. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN □ APRIL 1969 the $1 billion required by the Commerce Department guidelines; and a larger net inflow of bank-reported claims than was required under the Federal Reserve guidelines, in contrast to the outflow of 1967. Also affecting the liquidity balance was a substantial volume of special transactions with foreign governments; and affecting the official settle­ ments balance was a large net inflow of liquid funds through foreign branches of U.S. banks and other foreign banks. With respect to U.S. merchandise trade, the surplus for the first 11 months of 1968 totaled only about $300 million, compared with about $3.5 billion for the full year 1967. On the day of this meeting the Treasury was auctioning $1.75 billion of tax-anticipation bills due in June for payment on January 20. The Treasury was expected to announce around the end of January the terms on which it would refund notes and bonds maturing in mid­ February, of which about $5.4 billion were held by the public. Open market operations since the December 17, 1968, meeting of the Committee had been directed toward attaining firmer conditions in money and short-term credit markets, while taking account of the increase from 5% to 516 per cent in Federal Reserve Bank discount rates announced on the day of that meeting. The System absorbed reserves early in the interval and again near the close. But in the intervening period it supplied reserves to cushion an unduly sharp market reaction to the increase in restraint and to cope with sub­ stantial year-end strains. The effective rate on Federal funds fluctuated widely—with some trading at rates as high as 714 per cent, a new record, at the end of December—but was mostly in a range of 614 to 6% per cent, considerably above the range of previous weeks. In the single week ending January 1 member bank borrowings averaged $1.3 billion, a 16-year high; and in the 4 weeks ending January 8 they averaged $815 million, compared with an average of $515 million in the preceding 4 weeks. Average excess reserves also increased substantially in the interval, however, so that the rise in net borrowed reserves was relatively moderate. Interest rates on both short- and long-term Treasury securities rose to new highs in the week following the mid-December meeting of the Committee, and although these yields subsequently declined some­ what, they remained well above earlier levels. The market rate on 3- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 349 month Treasury bills, for example, advanced from 5.94 per cent on December 16 to a peak of 6.29 per cent on December 24 and then declined irregularly to 6.13 per cent on the day before this meeting. Yields on other short-term market instruments also rose considerably on balance. In markets for corporate and municipal bonds, yields fluctuated in a rather narrow range around the highs reached in mid­ December. New-issue volume in December was unusually small for corporate bonds; for municipal bonds, it was below the monthly aver­ age for the year largely because of the withdrawal of several sched­ uled offerings. Net inflows of deposits to nonbank financial intermediaries slackened somewhat in November and apparently also in December. Yields on home mortgages in the secondary market continued to advance and by early January were close to the high that had been reached in the preceding June. Since late November most major banks had been offering the maxi­ mum permissible rates under Regulation Q for large-denomination negotiable certificates of deposit (CD’s) of all maturities. But as short­ term market rates of interest continued to rise, CD’s became pro­ gressively less competitive, and during December and early January there were declines in the volume outstanding—particularly at large money market banks—of considerably greater than seasonal dimen­ sions. However, inflows of consumer-type time and savings deposits remained substantial during much of December, and on the average total time and savings deposits at banks increased at about the rela­ tively rapid rate of November. The money stock expanded in Decem­ ber at an estimated annual rate of about 6 per cent—roughly half the November rate—although it bulged sharply around the turn of the year. The prime lending rate of commercial banks, which had been raised to 614 per cent on December 2, was advanced to 6% per cent on December 18—the day after the increase in discount rates was announced—and then to a record 7 per cent on January 7. In De­ cember, according to preliminary estimates, growth in business loans slowed considerably, as did bank acquisitions of municipal securities. However, the sharp decline in bank holdings of Treasury securities that had occurred in November was not repeated in December. Total Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN □ APRIL 1969 bank credit, as measured by the bank credit proxy—daily-average member bank deposits 2—rose from November to December at an annual rate of about 13 per cent, compared with 11 per cent in the previous month and 13 per cent in the second half of 1968. After adjustment for changes in the daily average of U.S. bank liabilities to foreign branches—which increased slightly in November but fell sharply in December—the proxy series expanded at an annual rate of about 11.5 per cent in both months. Staff projections suggested that if existing Regulation Q ceilings and prevailing money market conditions were maintained there would be further large declines in the volume of CD’s outstanding and a marked slowing of inflows of consumer-type time and savings deposits. The average level of the money stock was expected to be considerably higher in January than in December because of the sharp but largely temporary increase in late December and early January. With respect to bank credit, the staff projections suggested that the proxy series would expand in January at an annual rate in the range of zero to 3 per cent. After adjustment for the marked increase in U.S. bank liabili­ ties to foreign branches that had already occurred in early January, growth in the credit proxy was projected in a range of 2 to 5 per cent. For February, prospects were for continued run-offs of CD’s and no significant increase in the rate of bank credit growth. 2 In recent years the Committee has been making use of daily-average statistics on total member bank deposits as a “bank credit proxy”—that is, as the best avail­ able measure, although indirect, of developing movements in bank credit. Because they can be compiled on a daily basis with a very short lag, the deposit figures are more nearly current than available bank loan and investment data. Moreover, average deposit figures for a calendar month are much less subject to the influence of single-date fluctuations than are the available month-end data on total bank credit, which represent estimates of loans and investments at all commercial banks on one day—the last Wednesday—of each month. For statistics on daily-average member bank deposits, see the table in the statistical section of the Federal Re­ serve Bulletin (on page A-17 of the January 1969 issue). Some brief comments on the relation between the member bank deposit series and the bank credit statis­ tics are given in the note on p. 1460 of the October 1966 Bulletin. As indicated in that note, movements in total member bank deposits and in commercial bank credit can diverge for various reasons, including changes in nondeposit liabilities of banks. Because changes in U.S. bank liabilities to foreign branches recently have been an important source of divergence from time to time, an “adjusted" proxy series, taking approximate account of such changes, is now also being calculated for Committee use. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 351 In the Committee’s discussion it was noted that, despite the indica­ tions of slowing in the rate of economic expansion, upward pressures on prices persisted and inflationary expectations remained widespread. It also was noted that the recent improvement in the U.S. balance of payments, while encouraging, did not imply that a sustainable equilib­ rium had been achieved, particularly in view of the marked deteriora­ tion in the U.S. trade surplus during 1968. The Committee agreed that under these circumstances it would be desirable at present to maintain the existing degree of monetary re­ straint. The fact that the Treasury would be announcing a refunding around the end of January also was mentioned as militating in favor of an unchanged policy. The sharp slowing of growth in bank credit pro­ jected for January and February was generally considered to be appro­ priate, especially in light of the high growth rates of recent months. The view was expressed, however, that it would be undesirable to curtail bank credit drastically for an extended period. The Committee decided that open market operations should be di­ rected at maintaining the prevailing firm conditions in money and short-term credit markets, with the proviso that operations should be modified—to the extent permitted by the forthcoming Treasury re­ funding—if bank credit expansion appeared to be deviating signifi­ cantly in either direction from current projections. Comments were made as to the desirability, on the one hand, of moderating any undue liquidity pressures that might develop and, on the other hand, of also moderating any tendency toward easing of money market conditions that might be brought about by seasonal forces. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that expansion in real economic activity has been moderating, with slower growth in consumer outlays but higher rates of business inventory accumu­ lation and capital expenditures. Upward pressures on prices and costs, however, are persisting. Since the mid-December firming of monetary policy, most interest rates have risen further and, with the outstanding volume of large-denomination CD’s declining sharply, bank credit expansion has slowed. Growth in the money supply moderated somewhat on average in December from its rapid Novem­ ber pace. The U.S. foreign trade surplus remains very small but near Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN □ APRIL 1969 the end of the year unusual capital inflows had a markedly favor­ able effect on the over-all balance of payments. In this situation, it is the policy of the Federal Open Market Committee to foster finan­ cial conditions conducive to the reduction of inflationary pressures, with a view to encouraging a more sustainable rate of economic growth and attaining reasonable equilibrium in the country’s bal­ ance of payments. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining the prevailing firm conditions in money and short-term credit markets; provided, however, that operations shall be modified, to the extent permitted by the forthcoming Treasury refunding, if bank credit expansion appears to be deviating significantly from current projections. Votes for this action: Messrs. Martin, Brimmer, Daane, Galusha, Hickman, Kimbrel, Maisel, Mitchell, Robertson, Sherrill, and Treiber. Vote against this action: Mr. Morris. Absent and not voting: Mr. Hayes. (Mr. Treiber voted as his alternate.) Mr. Morris dissented from this action because he thought the direc­ tive as adopted could be consistent with an unduly restrictive monetary policy. In his judgment the current state of the economy called for a substantial moderation of bank credit growth from the 13 per cent rate that had prevailed over the second half of 1968, but not for so sharp a change as was implied by the projections for January and Feb­ ruary. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS located in such a city which is permitted by the The Board of Governors, effective April 17, Board of Governors of the Federal Reserve Sys­ 1969, has amended section 204.5 of Regulation tem, pursuant to § 204.2(a)(2), to maintain the D, “Reserves of Member Banks”, so as to increase reserves specified in subparagraph (1) of this by one-half percentage point the ratio of reserves paragraph) — that must be maintained by a member bank (i) 3 per cent of (A) its savings deposits against its demand deposits. The text of the and (B) its time deposits, open ac­ amended section is as follows: count, that constitute deposits of in­ dividuals, such as Christmas club SUPPLEMENT TO REGULATION D accounts and vacation club accounts, that are made under written con­ Effective April 17, 1969 tracts providing that no withdrawal shall be made until a certain number SECTION 204.5—SUPPLEMENT of periodic deposits have been made (a) Reserve percentages.—-Pursuant to the pro­ during a period of not less than 3 vision of section 19 of the Federal Reserve Act months; plus and § 204.2(a) and subject to paragraph (b) of (ii) 3 per cent of its other time deposits this section, the Board of Governors of the Fed­ up to $5 million, plus 6 per cent of eral Reserve System hereby prescribes the follow­ such deposits in excess of $5 million; ing reserve balances which each member bank of plus the Federal Reserve System is required to main­ (iii) 17 per cent of its net demand depos­ tain on deposit with the Federal Reserve Bank of its up to $5 million, plus 17V& per its district: cent of such deposits in excess of $5 (1) If not in a reserve city— million. (i) 3 per cent of (A) its savings deposits (b) Currency and coin. The amount of a mem­ and (B) its time deposits, open ac­ ber bank’s currency and coin shall be counted as count, that constitute deposits of in­ reserves in determining compliance with the re­ dividuals, such as Christmas club serve requirements of paragraph (a) of this sec­ accounts and vacation club accounts, tion. that are made under written con­ MEMBER BANK REPORTS OF CONDITION tracts providing that no withdrawal shall be made until a certain number The Board of Governors, effective March 18, of periodic deposits have been made 1969, has amended Regulation H, “Membership during a period of not less than 3 of State Banking Institutions in the Federal Re­ months; plus serve System”, and its “Rules Regarding Dele­ (ii) 3 per cent of its other time deposits gation of Authority” to reflect certain changes in up to $5 million, plus 6 per cent of the revised procedure for call reports recently such deposits in excess of $5 million; approved by the Board, the Federal Deposit plus Insurance Corporation, and the Comptroller of (iii) 121/2 per cent of its net demand de­ the Currency. posits up to $5 million, plus 13 per Specifically, Reserve Banks are authorized to cent of such deposits in excess of $5 extend the deadline for publication by State mem­ million. ber banks of reports of condition. Normally ex­ (2) If in a reserve city (except as to any bank tensions will be for up to 10 days, but longer 353 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN □ APRIL 1969 extensions may be granted in unusual circum­ SECTION 265.2—SPECIFIC FUNCTIONS stances beyond the reporting bank’s control—for DELEGATED example, to permit State member banks with for­ :|: :[: :|s :|: $ eign branches to obtain foreign branch deposit (f) Each Federal Reserve Bank is authorized, data for publication with domestic reports of con­ as to member banks or other indicated organiza­ dition at spring and fall call dates. Also, the tions headquartered in its district: amendment to Regulation H permits the published report of condition to differ from the report sub­ * :|c >[: * :|: mitted to the Reserve Bank in certain respects, as (16) Under § 208.9(a) of this chapter (Regu­ specified in the revised Instructions (Form F.R. lation H), for good cause shown, to extend the 105a). time for publication of reports of condition, such The text of the amendments is as follows: extensions not ordinarily to be for more than 10 days except in very unusual circumstances beyond AMENDMENT TO REGULATION H control of the reporting bank. Effective March 18, 1969, section 208.9(a)(1) and (3) is amended to read as follows: OBLIGATIONS ELIGIBLE AS COLLATERAL FOR SECTION 208.9—PUBLICATION OF ADVANCES BY MEMBER BANKS REPORTS OF MEMBER BANKS AND The Board of Governors, effective April 4, THEIR AFFILIATES” 1969, has amended Regulation A, “Advances and (a) Reports of member banks. (1) Each re­ Discounts by Federal Reserve Banks”, to elimi­ port of condition made by a member State bank nate the reference therein authorizing Reserve to its Federal Reserve Bank pursuant to a call Banks to make 90-day advances to member banks therefore by the Board shall be published by such on the security of certificates of interest issued by member bank within twenty days from the date the Commodity Credit Corporation in a pool of the call is issued, unless such time is extended by notes with maturities of not more than nine the Reserve Bank as provided in § 265.2(f) (16) months evidencing loans made by the Corporation of this chapter (Rules Regarding Delegation of pursuant to a commodity loan program. Simulta­ Authority). neously the Board amended the second paragraph * * * * * of its interpretation relating to the “Obligations (3) The copy of the report for the use of the Eligible as Collateral for Advances” (December printer for publication should be prepared on the 1968 Bulletin page 1012) to add to the list of form supplied or authorized for the purpose by agency obligations eligible as collateral for ad­ the Federal Reserve Bank. Except as permitted in vances Commodity Credit Corporation certificates the Instructions for preparation of reports of con­ of interest in a price-support loan pool. dition (Form F.R. 105a), the published informa­ The text of the amendments is as follows: tion shall agree in every respect with that shown on the face of the report of condition submitted AMENDMENT TO REGULATION A to the Federal Reserve Bank. All signatures shall be the same in the published statement as in the Effective April 4, 1969, section 201.2(a) is original report submitted to the Federal Reserve amended to read as follows: Bank, but the signatures may be typewritten or otherwise copied on the report for publication. SECTION 201.2—ADVANCES TO * * * *1* * MEMBER BANKS NOTE.—Footnote 9 remains unchanged. (a) Advances on obligations or eligible paper. RULES REGARDING DELEGATION Reserve Banks may make advances to member OF AUTHORITY banks for not more than 90 days if secured by ob­ AMENDMENT ligations or other paper eligible under the Federal Effective March 18, 1969, section 265.2(f) is Reserve Act for discount or purchase by Reserve amended by adding subparagraph (16) as fol­ Banks. lows: :|> $ * ^ ^ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 355 OBLIGATIONS ELIGIBLE AS COLLATERAL actual rate will at times be lower (e.g. 15%) for FOR ADVANCES some transactions? Effective April 4, 1969, the second paragraph Section 226.5 specifies the methods which shall of the Board’s interpretation on this subject (De­ be employed in determining annual percentage cember 1968 Bulletin page 1012) is amended rates. Section 226.6(h) is not intended to provide by adding subparagraph (15) as follows: an alternative to these requirements, but is merely “Under section 14(b) direct obligations of, and to provide appropriate relief to a creditor who over­ obligations fully guaranteed as to principal and in­ states accidentally. Any disclosure of an annual terest by, the United States or any agency thereof percentage rate whether preprinted or otherwise are eligible for purchase by Reserve Banks. Fol­ which overstates the annual percentage rate deter­ lowing are the principal agency obligations now mined in accordance with section 226.5 other eligible as collateral for advances: than through inadvertence does not comply with requirements. (15) Commodity Credit Corporation certifi­ TRANSITION PERIOD—USING EXISTING cates of interest in a price-support loan pool.” FORMS, SUITABLY ALTERED OR SUPPLEMENTED TRUTH IN LENDING Section 226.6(k) of Regulation Z provides that, INTERPRETATIONS OF REGULATION Z in some circumstances, if a creditor has been un­ USE OF RANGES OR BRACKETS TO DETERMINE able to obtain needed new printed forms by July 1, PERIODIC RATE OF FINANCE CHARGE ON 1969, he may use existing forms until new ones OPEN END ACCOUNTS are obtained, but not later than December 31, Section 226.5(a)(1) of Regulation Z, in effect, 1969. In such instances, the existing forms must gives a creditor the option in certain circum­ be suitably altered or supplemented to make nec­ stances of stating (1) two or more separate essary disclosures clearly and conspicuously. The annual percentage rates (e.g., the rate on a $700 requirement that existing forms be supplemented balance might be stated as 18% on balance to is met by attachments or enclosures. $500 and 12% on balance over $500), or (2) a Also in some instances, creditors encounter un­ single annual percentage rate determined by the avoidable delays in obtaining necessary equipment “quotient method” resulting from applying the or computer programs needed to utilize new print­ rates to a total balance (e.g., in the example ed forms. Such delays can produce problems com­ above, an annual percentage rate of 1614% on a parable to those involved in delays in obtaining $700 balance). printed forms. In such a situation, a creditor, un­ Section 226.5(a)(2), which relates to the use der section 226.6(k), may continue to use existing of ranges or brackets to compute periodic finance forms until the means of utilizing the new forms charges, does not prevent a creditor who uses are available, but in no event later than December such brackets from exercising the options referred 31, 1969, and subject, of course, to the conditions to in section 226.5(a)(1). applicable under section 226.6(k): namely, that the creditor must have taken bona fide steps prior OVERSTATEMENT OF ANNUAL PERCENTAGE to July 1, 1969, to obtain the necessary equipment RATE or computer programs, and the existing forms must be “altered or supplemented as necessary to Section 226.6(h) of Regulation Z provides that assure that all of the items of information the in certain circumstances the disclosure of an an­ creditor is required to disclose are set forth clearly nual percentage rate which is greater than that re­ and conspicuously.” quired to be disclosed under the regulation does not in itself constitute a violation of the regula­ tion. Under this section may a disclosure regard­ DISCLOSURES IN TRANSACTION INVOLVING MULTIPLE CUSTOMERS ing an annual percentage rate (e.g. “the annual percentage rate does not exceed 18%”) be pre­ Section 226.6(e) of Regulation Z states the printed on a contract or periodic statement and general rule that, except in the case of a rescind­ comply with disclosure requirements when the able transaction under section 226.9, where there Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN □ APRIL 1969 are multiple customers in a transaction, the credi­ der the charter and title of The Fidelity Bank. tor is only required to make disclosures to one of Notice of the proposed merger, in form approved them. However, in determining which customer by the Board, has been published pursuant to said shall receive disclosures, the creditor may not se­ Act. lect a customer who is secondarily liable, such as Upon consideration of all relevant material in an endorser, comaker (when designated as sure­ the light of the factors set forth in said Act, in­ ty), guarantor, or a similar party. This does not cluding reports furnished by the Comptroller of prohibit the creditor from also furnishing disclo­ the Currency, the Federal Deposit Insurance Cor­ sures to such persons who are secondarily liable. poration, and the Attorney General on the competitive factors involved in the proposed PERIODIC STATEMENTS—FINANCE CHARGE merger, RESULTING FROM MORE THAN ONE It is hereby ordered, for the reasons set forth PERIODIC RATE in the Board’s Statement of this date, that said ap­ Section 226.7(b)(4) of Regulation Z requires plication be and hereby is approved, provided that that a periodic statement for open end credit show said merger shall not be consummated (a) before the amount of any finance charge, and that the the thirtieth calendar day following the date of statement also itemize and identify that portion of this Order or (b) later than three months after the finance charge that is due to application of the date of this Order unless such period is ex­ one or more periodic rates and that portion due to tended for good cause by the Board or by the any other charge such as minimum, fixed, check Federal Reserve Bank of Philadelphia pursuant to service, transaction, activity, or similar charge. delegated authority. This does not require the statement to state sep­ Dated at Washington, D.C., this 12th day of March, 1969. * arately the portions of a finance charge due to ap­ plication of two or more periodic rates. For exam­ By order of the Board of Governors. ple, if a creditor charges Wi% per month on the Voting for this action: Chairman Martin and first $500 of a balance and 1 % per month on Governors Robertson, Mitchell, Daane, Maisel, Brim­ amounts over $500, the monthly charge on a mer and Sherrill. $600 balance would be $8.50, which must be (Signed) Robert P. Forrestal, shown. However, it would not be necessary to Assistant Secretary^ itemize the two components ($7.50 and $1.00) of [seal] the $8.50 charge. Under section 226.7(b)(5), the periodic rates that may apply to the account, Statement and the applicable range of balances must, of The Fidelity Bank, Philadelphia, Pennsylvania course, be shown, but this could be preprinted. (“Applicant”), with total deposits of about $1.1 billion has applied pursuant to the Bank Merger ORDERS UNDER BANK MERGER ACT Act (12 U.S.C. 1828(c)), for the Board’s prior approval of the merger of that bank with Trefoil THE FIDELITY BANK, Bank, Philadelphia, Pennsylvania (“Trefoil”), PHILADELPHIA, PENNSYLVANIA which is a newly organized bank not in operation. In the matter of the application of The Fidel­ The banks would merge under the charter and ity Bank for approval of merger with Trefoil name of Applicant, which is a member of the Bank. Federal Reserve System. The proposed merger is one step in a plan of Order Approving Merger of Banks corporate reorganization whereby Fidelity Corpo­ There has come before the Board of Gover­ ration of Pennsylvania, a newly organized nors, pursuant to the Bank Merger Act (12 Pennsylvania corporation, would become a one- U.S.C. 1828(c)), an application by The Fidelity bank holding company. Fidelity Corporation of Bank, Philadelphia, Pennsylvania, a State member Pennsylvania presently owns all the stock of Tre­ bank of the Federal Reserve System, for the foil; upon the merger of Applicant with Trefoil, Board’s prior approval of the merger of that bank stock of Fidelity Corporation ot Pennsylvania will with Trefoil Bank, Philadelphia, Pennsylvania, un­ be exchanged for stock of Applicant. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 357 Use of a merger transaction in Applicant’s plan after the date of this Order unless such period is to form a one-bank holding company would as­ extended for good cause by the Board or by the sure to Fidelity Corporation of Pennsylvania the Federal Reserve Bank of San Francisco pursuant ability to acquire, except for directors’ qualifying to delegated authority. shares, all the outstanding stock of the banking Dated at Washington, D.C., this 17th day of subsidiary. March, 1969. Statutory considerations. From the record be­ By order of the Board of Governors. fore the Board, the proposed merger of Applicant Voting for this action: Chairman Martin and and Trefoil—the latter being a bank with no oper­ Governors Robertson, Maisel, Brimmer, and Sherrill. ating history, formed solely to facilitate the corpo­ Absent and not voting: Governors Mitchell and Daane. rate reorganization plan described above—would itself have no effect on either competition or the (Signed) Robert P. Forrestal, banking convenience and needs of any relevant Assistant Secretary. area. Nor would it appear that the proposal would [seal] have any adverse consequences relative to the fin­ ancial and managerial resources and prospects of Statement Applicant or Trefoil Bank. Accordingly, and in light of all of the standards Union Bank, Los Angeles, California (“Union set forth in the Bank Merger Act, the Board con­ Bank”), with total deposits of $1,280 million, has applied, pursuant to the Bank Merger Act (12 cludes that the application should be approved. U.S.C. 1828(c)), for the Board’s prior approval of the merger of that bank with the Oakland UNION BANK, Bank of Commerce, Oakland, California (“Oak­ LOS ANGELES, CALIFORNIA land Bank”), with deposits of $127 million.1 The In the matter of the application of Union banks would merge under the charter and the Bank for approval of merger with Oakland Bank name of Union Bank, which is a member of the of Commerce. Federal Reserve System. As an incident to the merger, the sole office of Oakland Bank would be­ come a branch of Union Bank, increasing the Order Approving Merger of Banks number of its offices to 17. There has come before the Board of Gover­ Competition. Union Bank, headquartered in nors, pursuant to the Bank Merger Act (12 Los Angeles, operates 16 banking offices in South­ U.S.C. 1828(c)), an application by Union Bank, ern California and is the seventh largest bank in Los Angeles, California, a State member bank of California, holding 2.9 per cent of total commerithe Federal Reserve System, for the Board’s prior cal bank deposits in the State. Oakland Bank’s approval of the merger of that bank with Oakland only office is in Alameda County. The bank ranks Bank of Commerce, Oakland, California, under twentieth in size in California, with 0.3 per cent the charter and title of Union Bank. Notice of the of total deposits. Consummation of the proposal proposed merger, in form approved by the Board, would produce the eighth State-wide banking sys­ has been published pursuant to said Act. tem, with the resulting bank controlling 3.2 per Upon consideration of all relevant material in cent of total commerical bank deposits and oper­ the light of the factors set forth in said Act, in­ ating 17 of the State’s approximately 2,900 cluding reports furnished by the Comptroller of banking offices. the Currency, the Federal Deposit Insurance Cor­ While there is a heavy concentration of banking poration, and the Attorney General on the com­ resources in the State, the fifth largest bank is petitive factors involved in the proposed merger. more than double the size of the sixth or seventh It is hereby ordered, for the reasons set forth ranked banks, and the resulting bank would re­ in the Board’s Statement of this date, that said main the seventh largest bank in California. application be and hereby is approved, provided Neither bank is dominant in its service area. that said merger shall not be consummated (a) Oakland Bank’s service area includes all of the before the thirtieth calendar day following the date of this Order or (b) later than three months i Figures are as of October 30, 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

358 FEDERAL RESERVE BULLETIN n APRIL 1969 City of Oakland, most of Alameda County, and Summary and conclusion. In the judgment of portions of adjacent Contra Costa County. This the Board, the very slight adverse effect on com­ area, which is part of the San Francisco Standard petition that would result from entry of Union Metropolitan Statistical Area, has 16 banks oper­ Bank into the Oakland area as proposed, would ating 102 offices with estimated deposits of $2 bil­ be offset by the availability to the Oakland area of lion. Oakland Bank ranks fourth in its service the services of the resulting bank. area, with approximately 6 per cent of that mar­ Accordingly, the Board concludes that the ap­ ket. Union Bank holds a relatively minor share of plication should be approved. deposits in the markets in which it presently oper­ ates. In Los Angeles County, the bank ranks CITIZENS TRUST AND SAVINGS BANK, fourth of 56 banks, with 8 per cent of total de­ SOUTH HAVEN, MICHIGAN posits as of June 30, 1966; in Orange County, it was the sixth largest of 22 banks, with 3.4 per In the matter of the application of Citizens cent of total deposits; and in San Diego County, Trust and Savings Bank for approval of acquisi­ eighth largest of 13 banks, with 1.5 per cent of tion of assets of The West Michigan Savings total deposits. Bank. Approximately 380 miles separate the nearest offices of the two banks, and the amount of loan Order Denying Acquisition of Bank’s Assets and deposit business which each bank derives There has come before the Board of Gover­ from the area served by the other is minute. Pres­ nors, pursuant to the Bank Merger Act (12 ently, there is almost no competition between the U.S.C. 1828(c)), an application by Citizens participants. Potentially, however, either bank Trust and Savings Bank, South Haven, Michigan, could enter the service area of the other by either a State member bank of the Federal Reserve Sys­ merger or through the establishment of a de novo tem, for the Board's prior approval of its acquisi­ branch. It is unlikely that Oakland Bank would tion of assets and assumption of deposit liabilities become a competitor in Southern California. The of The West Michigan Savings Bank, Bangor, record indicates that it is also unlikely that Union Michigan, and, as an incident thereto, Citizens Bank would establish a de novo branch in Oak­ Trust and Savings Bank has applied, under section land. 9 of the Federal Reserve Act, for the Board’s The overall effect of the proposal on competi­ prior approval of the establishment by that bank tion would be no more than slightly adverse. of a branch at the location of the main office of Financial and managerial resources and future The West Michigan Savings Bank. Notice of the prospects. The banking factors with respect to proposed acquisition of assets and assumption of Union Bank and Oakland Bank are reasonably deposit liabilities, in form approved by the Board, satisfactory, and this would also be true of the re­ has been published pursuant to said Act. sulting bank. Upon consideration of all relevant material in Convenience and needs of the communities. the light of the factors set forth in said Act, in­ Consummation of the proposed merger would cluding reports furnished by the Comptroller of have no measurable effect upon the ability of Un­ the Currency, the Federal Deposit Insurance Cor­ ion Bank to serve its present areas of activity. The poration, and the Attorney General on the com­ entry of Union Bank into the Oakland area petitive factors involved in the proposed through replacement of Oakland Bank by an transaction, office of the larger bank, however, would bring to that locality the full-service banking capabilities of It is hereby ordered, for the reasons set forth in the Board’s Statement of this date, that said ap­ Union Bank’s regional system. This would be ex­ plications be and hereby are denied. pected to result in particular benefit to the Oak­ land area, which is undergoing extensive redevel­ Dated at Washington, D.C., this 19th day of opment, in view of Union Bank’s considerable March, 1969. construction finance experience. By order of the Board of Governors. Considerations under this factor lend some Voting for this action: Chairman Martin and Gov­ weight for approval of the proposal. ernors Robertson, Mitchell, Maisel, and Sherrill. Vot- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 359 ing against this action: Governor Daane. Absent and There are only two other banking offices in the not voting: Governor Brimmer. combined service area of Bangor Bank and the (Signed) Robert P. Forrestal, main office and Bloomingdale branch of Citizens Assistant Secretary, Bank. The First National Bank and Trust Co. of Kalamazoo (total deposits $196 million) operates [seal] a branch at Gobles, about five miles east of Statement Bloomingdale; the Van Buren State Bank, Hart­ Citizens Trust and Savings Bank, South Haven, ford (total deposits $8.5 million), operates a Michigan (“Citizens Bank”), with total deposits branch at Covert, about eight miles south of of $32.6 million, has applied, pursuant to the South Haven and nine miles west of Bangor. Citi­ Bank Merger Act (12 U.S.C. 1828(c)), for the zens Bank and Bangor Bank presently hold 67 per Board’s prior approval of its acquisition of assets cent and 21 per cent, respectively, of the deposits and assumption of deposit liabilities of The West held by the five banking offices in this combined Michigan Savings Bank, Bangor, Michigan (“Ban­ area. gor Bank”), which has total deposits of $7.5 The next closest banking offices to Bangor million.1 As an incident to the transaction, the Bank are five that lie to the south of this com­ sole office of Bangor Bank would become a bined area: the Lawrence branch (9 miles branch of Citizens Bank, increasing the number southeast of Bangor) of The American National of its offices to five. Bank and Trust Company of Michigan (total de­ Competition. Citizens Bank operates its head posits $138 million); the head office of Van Buren office in South Haven (population about 6,150); State Bank at Hartford (10 miles southwest of the bank operates branches in Fennville and Sau­ Bangor); the head office of The First National gatuck, which are, respectively 18 miles northeast Bank of Watervliet (16 miles Southwest of Ban­ and 20 miles north, of South Haven, and a gor); The State Bank of Coloma (18 miles branch at Bloomingdale, which is 19 miles east of southwest of Bangor); and the Paw Paw branch South Haven. Bangor Bank’s sole office is in Ban­ (18 miles southeast of Bangor) of The First Na­ gor (population about 2,100), 11.5 miles south­ tional Bank and Trust Company of Kalamazoo. If east of Citizens Bank’s main office and 13 miles these five offices are regarded as within the mar­ southwest of its Bloomingdale branch; there are ket served by Bangor Bank and the main office no banking offices in the intervening area. In­ and Bloomingdale branch of Citizens Bank, then dustrial plants in Bangor and South Haven Citizens Bank, following the acquisition of Bangor employ, respectively about 1000 and 3000 per­ Bank, would hold about 40 per cent of area de­ sons. A large portion of the persons employed in posits. these plants reside in outlying areas, with many The acquisition of Bangor Bank by Citizens working in Bangor who reside in the rural sec­ Bank would eliminate existing and potential com­ tions of Citizens Bank’s service area and many petition between them and enhance the dominant working in South Haven who reside in the rural position of Citizens Bank in an area where bank­ sections of the area served by Bangor Bank. In ing resources are already rather highly concen­ addition, many residents of the Bangor area shop trated, whether the appropriate market be regarded in South Haven, and Citizens Bank is a conven­ as the five-bank-office or the ten-bank-office area, ient alternative source of banking services for described above. The provision of Michigan Jaw them. that prohibits the establishment of de novo Bangor Bank derives about 10 per cent of its branches in a town in which there is already a deposits and about 10 per cent of its loans from banking office would further enhance Citizens the area served by Citizens Bank. Citizens Bank Bank’s dominant position. obtains deposits from the service area of Bangor The proposed transaction would have a signifi­ Bank that equal over 40 per cent of the latter’s cantly adverse effect on competition. deposits. The loans Citizens Bank obtains from Financial and managerial resources and pros­ the service area of Bangor Bank equal over 25 pects. The banking factors with respect to each of per cent of Bangor Bank’s loans. the banks are reasonably satisfactory, as they i As of June 29, 1968. would be with respect to the resulting bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN □ APRIL 1969 Convenience and needs of the communities. It securing the aforementioned benefits. Any conclu­ is contended that the replacement of Bangor Bank sion that alternative merger or acquisition propos­ by an office of Citizens Bank would benefit the als are available to the Bangor Bank is purely banking convenience and needs of the area pres­ conjectural and non-supportive of a denial action. ently served by Bangor Bank. Citizens Bank could offer more and better services than Bangor Bank ORDERS UNDER SECTION 3 OF now provides, but the interests of the Bangor BANK HOLDING COMPANY ACT community would be better served in the long run COMMERCE BANCSHARES, INC., if such improvement were forthcoming from a KANSAS CITY, MISSOURI banking organization with a less dominant posi­ In the matter of the application of Commerce tion in the area. There is no basis for concluding Bancshares, Inc., Kansas City, Missouri, for ap­ that there are no feasible means for improving the proval of acquisition of 80 per cent or more of banking services available in the Bangor commun­ the voting shares of The Citizens National Bank ity other than the amalgamation of Bangor Bank of Kirksville, Kirksville, Missouri. with a major competitor. See United States v. Third National Bank in Nashville, 390 U.S. 171 Order Approving Application under (1968). Bank Holding Company Act Summary and conclusion. In the judgment of the Board, the significantly adverse effect of the There has come before the Board of Gover­ proposed acquisition on competition would not be nors, pursuant to section 3(a)(3) of the Bank clearly outweighed in the public interest by poten­ Holding Company Act of 1956 (12 U.S.C. tial benefits for banking convenience and needs. 1842(a)(3)), and section 222.3(a) of Federal Accordingly, the Board concludes that the Reserve Regulation Y (12 CFR 222.3(a)), an ap­ application should be denied. plication by Commerce Bancshares, Inc., Kansas City, Missouri, a registered bank holding compa­ Dissenting Statement of J. Dewey Daane ny, for the Board’s prior approval of the On the basis of the record before the Board I acquisition of 80 per cent or more of the voting would approve this merger. I cannot agree that shares of The Citizens National Bank of Kirks­ consummation of this proposal would have any ville, Kirksville, Missouri. significantly adverse effect on existing competition As required by section 3(b) of the Act, the or in any real sense preclude meaningful potential Board notified the Comptroller of the Currency of competition. Little competition now exists be­ the application and requested his views and rec­ tween the two institutions. Considering the num­ ommendation. The Comptroller recommended ap­ ber and size of banks headquartered outside, but proval of the application. competing within, the Bangor Bank’s service area, Notice of receipt of the application was and the lack of aggressiveness on the part of the published in the Federal Register on December 3, Bangor Bank, I am unable to foresee any signifi­ 1968 (33 Federal Register 17933), providing an cant future competition arising between the two opportunity for interested persons to submit com­ banks assuming the Bangor Bank continues its ments and views with respect to the proposed present mode and scope of operation. transaction. A copy of the application was for­ Strongly supporting approval of the application, warded to the United States Department of Jus­ I believe, is the evidence of immediate benefits tice for its consideration. Time for filing that will accrue to the banking public in the Ban­ comments and views has expired and all those re­ gor area from the likely immediate infusion in ceived have been considered by the Board. the Bangor Bank of aggressive operational policies It is hereby ordered, for the reasons set forth and practices. In particular, the institution of a in the Board’s Statement of this date, that said ap­ more liberal lending policy and more competitive plication be and hereby is approved, provided that rates of interest on time and savings deposits the application so approved shall not be consum­ would make Bangor Bank a far more viable com­ mated (a) before the thirtieth calendar day petitor. following the date of this Order or (b) later than In my judgment, absent approval of this pro­ three months after the date of this Order unless posal, there is no reasonable alternative for such period is extended for good cause by the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 361 Board or by the Federal Reserve Bank of Kansas mated (a) before the thirtieth calendar day City pursuant to delegated authority. following the date of this Order or (b) later than Dated at Washington, D.C., this 10th day of three months after the date of this Order unless March, 1969. such period is extended for good cause by the By order of the Board of Governors. Board or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. Voting for this action: Chairman Martin and Gov­ ernors Robertson, Maisel, Brimmer, and Sherrill. Ab­ Dated at Washington, D.C., this 18th Day of sent and not voting: Governors Mitchell and Daane. March, 1969. By order of the Board of Governors. (Signed) Robert P. Forrestal, Assistant Secretary. Voting for this action: Chairman Martin and Gov­ ernors Robertson, Maisel, Brimmer, and Sherrill. Ab­ [seal] sent and not voting: Governors Mitchell and Daane. (Signed) Robert P. Forrestal, In the matter of the application of Commerce Assistant Secretary. Bancshares, Inc., Kansas City, Missouri, for ap­ [seal] proval of acquisition of 80 per cent or more of the voting shares of The Mechanics Bank, St. Jo­ Statement seph, Missouri. Commerce Bancshares, Inc., Kansas City, Mis­ souri (“Applicant”), a registered bank holding Order Approving Application under company, has applied to the Board of Governors, Bank Holding Company Act pursuant to section 3(a)(3) of the Bank Holding There has come before the Board of Gover­ Company Act of 1956 (12 U.S.C. 1842(a)(3)), nors, pursuant to section 3(a)(3) of the Bank for prior approval of the acquisition of 80 per Holding Company Act of 1956 (12 U.S.C. cent or more of the voting shares of The Citizens 1842(a)(3)), and section 222.3(a) of Federal National Bank of Kirksville, Kirksville, Missouri Reserve Regulation Y (12 CFR 222.3(a) ), an ap­ (“Citizens Kirksville”), and The Mechanics Bank, plication by Commerce Bancshares, Inc., Kansas St. Joseph, Missouri (“Mechanics Bank”). While City, Missouri, a registered bank holding compa­ each of the applications has been separately con­ ny, for the Board’s prior approval of the acquisi­ sidered and is subject to a separate Board Order, tion of 80 per cent or more of the voting shares because of facts and circumstances common to of The Mechanics Bank, St. Joseph, Missouri. both applications, this statement contains the As required by Section 3(b) of the Act, the Board’s findings and conclusions with respect to Board notified the Commissioner of Finance for both. the State of Missouri of the application and re­ Views and recommendation of supervisory au­ quested his views and recommendation. The Com­ thorities. As required by section 3(b) of the Act, missioner responded that he had no objection to the Board notified the Comptroller of the Cur­ approval of the application. rency of receipt of the application relating to Citi­ Notice of receipt of the application was pub­ zens Kirksville and notified the Commissioner of lished in the Federal Register on December 3, Finance for the State of Missouri of receipt of the 1968 (33 Federal Register 17934), providing an application relating to Mechanics Bank, and re­ opportunity for interested persons to submit com­ quested their views and recommendation thereon. ments and views with respect to the proposed The Commissioner indicated that he had no objec­ transaction. A copy of the application was for­ tion to approval of the Mechanics Bank proposal, warded to the United States Department of Jus­ and the Comptroller recommended approval of tice for its consideration. Time for filing the proposal involving Citizens Kirksville. comments and views has expired and all those re­ Statutory considerations. Section 3(c) of the ceived have been considered by the Board. Act provides that the Board shall not approve an It is hereby ordered, for the reasons set forth acquisition that would result in a monopoly or in the Board’s Statement of this date, that said ap­ would be in furtherance of any combination or plication be and hereby is approved, provided that conspiracy to monopolize or to attempt to monop­ the acquisition so approved shall not be consum­ olize the business of banking in any part of the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN a APRIL 1969 United States. Nor may the Board approve a pro­ present subsidiary banks. It does not appear that posed acquisition the effect of which, in any any competition exists between the two proposed section of the country, may be substantially to subsidiary banks or between either of them and lessen competition, or to tend to create a monopo­ present subsidiaries of Applicant. Although Com­ ly, or which in any other manner would be in re­ merce Trust Company, Applicant’s lead bank in straint of trade, unless the Board finds that the Kansas City, derives a small number of trust ac­ anticompetitive effects of the proposed transaction counts from the Kirksville and St. Joseph areas, are clearly outweighed in the public interest by such business does not appear indicative of signif­ the probable effect of the transaction in meeting icant competition between that bank and the pro­ the convenience and needs of the community to posed subsidiaries, particularly in light of the fact be served. In each case the Board is required to that Mechanics Bank has only a relatively small take into consideration the financial and manage­ trust department and Citizens Kirksville does not rial resources and future prospects of the bank exercise its authorized fiduciary powers. Further, holding company and the banks concerned, and in view of the distances involved and State convenience and needs of the community to be branching restrictions, it does not appear likely served. that significant competition with Applicant’s pres­ Competitive effects of the proposed transac­ ent subsidiaries would develop in the future. It is tions. Applicant, the third largest banking organi­ reasonably foreseen that the acquisitions proposed zation in Missouri, controls deposits of $561 mil­ will increase the competitive abilities of the sub­ lion, representing 5.8 per cent of the total deposits ject banks, without undue adverse effects on the held by all banks in the State.1 Upon completion viability or competitive effectiveness of competing of the acquisitions proposed, Applicant would banks. control 6.1 per cent of total deposits in the State In the light of these facts, the Board concludes and would remain the State’s third largest banking that consummation of the proposed acquisitions organization, behind two independent St. Louis would not result in a monopoly nor be in any fur­ Banks. Consummation of the proposals would not therance of any combination, conspiracy, or significantly affect the present degree of State­ attempt to monopolize the business of banking in wide concentration. any area. It does not appear that consummation Citizens Kirksville, which has deposits of $8.5 of either or both of the proposals would have the million, is the smallest of three banks located in effect of substantially lessening competition or the City of Kirksville, Adair County, in the north­ tending to create a monopoly in any section of east corner of the State. Its competitors hold de­ the country, or would in any manner be in re­ posits of $14 million and $10 million, straint of trade. respectively. Financial and managerial resources and future Mechanics Bank, with deposits of $22.4 mil­ prospects. The financial condition, management lion, is the third largest of nine banks located in and prospects of Applicant and Mechanics Bank St. Joseph and the third largest of 10 banks locat­ are considered satisfactory. Management of Citi­ ed in Buchanan County, in the northwest section zens Kirksville is satisfactory, and its prospects of the State. Three of the St. Joseph banks are appear favorable. It is in need of additional capi­ subsidiaries of a registered bank holding company tal, however, and Applicant has specified firm and hold, in the aggregate, deposits of $69 mil­ plans to improve the condition of the bank in that lion. The largest bank in the area, together with respect, upon consummation of its proposal. an affiliated bank, hold deposits of $83 million. Considerations under this factor are consistent Missouri law generally prohibits branching, al­ with approval of both applications. though one limited-service facility is permitted Convenience and needs of the communities in­ within one thousand yards of the bank’s office. volved. Consummation of Applicant’s proposals The two banks involved are approximately 150 would not affect the convenience or needs of the miles apart, and are located 55 and 85 miles, re­ communities served by its present subsidiaries. spectively, from the nearest of Applicant’s four There is no evidence of unserved needs, nor i Unless otherwise noted, all banking data are as of does Applicant suggest that the proposed affilia­ June 29, 1968. tion will fulfill any unserved needs of the Kirks- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 363 ville or St. Joseph communities. The proposed Olean, Olean; Metropolitan Bank of Syracuse, the affiliations, however, would tend to assure the successor, by conversion to State charter, of Met­ availability of a greater variety and quality of ropolitan National Bank of Syracuse, Syracuse; banking services than either of the proposed sub­ and Niagara Frontier Bank of New York, Buffalo, sidiary banks could be expected to offer as an in­ a proposed new bank. dependent bank. The Kirksville community would As required by section 3(b) of the Act, the thus be provided with more convenient access to a Board gave written notice of receipt of the appli­ broad range of banking services, and Mechanics cation to the New York Superintendent of Banks, Bank would become a more meaningful alterna­ and requested his views and recommendation tive to the two dominant banking organizations in thereon. The New York State Banking Board ad­ the St. Joseph area. vised the Board of its action, consistent with a These considerations provide some weight in fa­ recommendation made to it by the Superintend­ vor of approval of the applications. ent, approving an application, filed pursuant to the New York Banking Law with respect to the Summary and conclusion. On the basis of all same transaction. relevant facts contained in the record, and in the light of the factors set forth in section 3(c) of the Since three of the banks whose voting shares Act, it is the Board’s judgment that the proposed would be acquired by Applicant are presently na­ transactions would be in the public interest and tional banks, the Board also invited an expression that the applications should be approved. of views by the Comptroller of the Currency. The Comptroller’s office responded that it had no com­ ment to offer with respect to the proposal. THE B.N.Y. COMPANY, INC., NEW YORK, NEW YORK Notice of receipt of the application was published in the Federal Register on September 6, In the matter of the application of The B.N.Y. 1968 (33 Federal Register 12697), providing an Company, Inc., New York, New York, for ap­ opportunity for interested persons to submit com­ proval of action to become a bank holding ments and views with respect to the proposal. A company through the acquisition of all of the out­ copy of the application was forwarded to the standing voting shares of seven banks in the State United States Department of Justice for its con­ of New York. sideration. Time for filing comments and views has expired and all those received have been con­ Order Approving Application Under sidered by the Board. Bank Holding Company Act It is hereby ordered, for the reasons set forth There has come before the Board of Gover­ in the Board’s Statement of this date, that said ap­ nors, pursuant to section 3(a)(1) of the Bank plication be and hereby is approved, provided that Holding Company Act of 1956 (12 U.S.C. the action so approved shall not be consummated 1842(a)(1)) and section 222.3(a) of Federal Re­ (a) before the thirtieth calendar day following the serve Regulation Y (12 CFR 222.3(a)), an date of this Order or (b) later than three months application by The B.N.Y. Company, Inc., New after the date of this Order, unless such time shall York, New York, for the Board’s prior approval be extended by the Board or by the Federal Re­ of action whereby Applicant would become a serve Bank of New York pursuant to delegated bank holding company through the acquisition of authority. all of the outstanding voting shares of the follow­ Dated at Washington, D.C., this 24th day of ing seven banks located in the State of New March, 1969. York: The Bank of New York, New York City; By order of the Board of Governors. The County Trust Company, White Plains; Me­ chanics and Farmers Bank of Albany, Albany; Voting for this action: Chairman Martin and Gov­ ernors Mitchell, Daane, Maisel, Brimmer, and Sher­ Endicott Bank of New York, Endicott, the succes­ rill. Voting against this action: Governor Robertson. sor, by conversion to State charter, of The (Signed) Robert P. Forrestal, Endicott National Bank, Endicott; The Exchange Assistant Secretary. Bank of Olean, the successor, by conversion to State charter, of The Exchange National Bank of [seal] Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN □ APRIL 1969 Statement Act provides that the Board shall not approve an acquisition that would result in a monopoly or The B.N.Y. Company, Inc,, New York, New would be in furtherance of any combination or York (“Applicant”), has filed with the Board, conspiracy to monopolize or to attempt to monop­ pursuant to section 3(a)(1) of the Bank Holding olize the business of banking in any part of the Company Act of 1956, an application for approv­ United States. Nor may the Board approve a pro­ al of action to become a bank holding company posed acquisition the effect of which, in any through the acquisition of all of the outstanding section of the country, may be substantially to voting shares of the following seven banks, all lo­ lessen competition, or to tend to create a monopo­ cated in the State of New York: The Bank of ly, or which in any other manner would be in re­ New York, New York City (“Bank of New straint of trade, unless the Board finds that the York”); The County Trust Company, White anticompetitive effects of the proposed transaction Plains (“County Trust”); Mechanics and Farmers are clearly outweighed in the public interest by Bank of Albany, Albany (“Mechanics and Farm­ the probably effect of the transaction in meeting ers Bank”); Endicott Bank of New York, the convenience and needs of the community to Endicott (“Endicott Bank”), the successor, by be served. In each case the Board is required to conversion to State charter, of The Endicott Na­ take into consideration the financial and manage­ tional Bank, Endicott; The Exchange Bank of rial resources and future prospects of the bank Olean, Olean (“Exchange Bank”), the successor, holding company and the banks concerned, and by conversion to State charter, of The Exchange the convenience and needs of the community to National Bank of Olean, Olean; Metropolitan be served. Bank of Syracuse, Syracuse (“Metropolitan Competitive effect of proposed transaction. Bank”), the successor, by conversion to State Consummation of the present proposal would re­ charter, of Metropolitan National Bank of Syra­ sult in Applicant’s becoming the ninth largest cuse, Syracuse; and Niagara Frontier Bank of banking organization in the State of New York. New York, Buffalo (“Niagara Bank”), a proposed Applicant’s subsidiary banks would operate a total new bank. of 78 banking offices 1 located in six of the State’s Views and recommendation of supervisory au­ nine Banking Districts, and hold total deposits of thority. As required by section 3(b) of the Act, $2.2 billion,2 an amount equal to 2.9 per cent of notice of receipt of the application was given to, the total deposits held by all banks in the State. and views and recommendation requested of, the All but $107 million in deposits and 11 offices New York State Superintendent of Banks. In view represent operations of Bank of New York and of his coordinate responsibilities under New York County Trust. law, the Superintendent did not comment directly Bank of New York ($1.3 billion deposits) is to the Board. The New York State Banking the ninth largest bank in New York City and the Board, however, advised the Board of its action, tenth largest banking organization in the State, ac­ consistent with a recommendation of the Superin­ counting for 1.7 per cent of the deposits held by tendent (a copy of which was also provided to the all banks in the State. It conducts a business Board), approving an application with respect to which is primarily, although not exclusively, the same transaction pursuant to Article III-A of wholesale in nature, through eight banking offices the New York Banking Law. located in the Wall Street and mid-town business Although not required by the Act to request the districts of Manhattan. A substantial portion of its views and recommendation of the Comptroller of gross operating income derives from its trust ac­ the Currency (since none of the banks whose vot­ tivities. The bulk of its loan portfolio (85 per ing shares would be acquired by Applicant would cent) is represented by commercial and industrial be national banks), the Board invited an expres­ loans, loans to financal institutions, loans to bro­ sion of views by the Comptroller, inasmuch as kers and other securities loans, with less than 3 three of the banks involved in the proposal are per cent of its portfolio represented by real estate presently national banks. The Comptroller’s office responded that it had no comment to offer on the i Includes the proposed office of Niagara Bank. proposal. s All banking data are as of June 29, 1968, unless other­ Statutory considerations. Section 3(c) of the wise noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 365 loans and consumer instalment loans. Of its total presently affiliated with a bank holding company. deposits, about 40 per cent represent large de­ It is the eighth largest of 33 banks in New York’s mand deposit accounts (in excess of $100,000) of Seventh Banking District. In addition to its main individuals, partnerships, and corporations, and office in Endicott, it operates three branches, lo­ nearly 20 per cent are deposits of banks, resulting cated in the suburban towns of Endwell, Vesta, from its widespread domestic and foreign corre­ and Apalachin. The three larger competitors of spondent activities. Endicott Bank range in deposit size from $54 mil­ County Trust ($781 million deposits) is the lion to $215 million. largest of seven banks headquartered in Westches­ The only office of Exchange Bank ($27 million ter County, and the fifth largest of 12 banks with deposits) is located in Olean, in New York’s offices located therein. It has 50 offices located Ninth Banking District. Exchange Bank is the sec­ throughout that county, and a total of nine offices ond largest of three banks in Olean, and would be in Rockland, Putnam, Sullivan, and Orange Coun­ the only one of the three Olean banks to be ties. Although considered a full-service bank, its affiliated with a bank holding company. primary emphasis is on providing retail services to Niagara Bank, organization of which was re­ its suburban customers. Over half of County cently approved by the New York State Banking Trust's deposits represent savings accounts and Board, would commence business with capital of relatively small (under $10,000) demand ac­ $4 million and a single office, located in down­ counts. Real estate loans and consumer instalment town Buffalo in the Ninth Banking District of loans constitute about three-fourths of its loan New York. The establishment of Niagara Bank is portfolio, with only 11 per cent of its portfolio contingent upon approval of the present applica­ represented by commercial and industrial loans. tion. Commercial banking in Buffalo and in the Its trust department accounts for less than one per Ninth Banking District is highly concentrated, cent of its gross operating income. with the three largest banks in Buffalo holding Mechanics and Farmers Bank ($25 million de­ about 80 per cent of the total deposits in the en­ posits) operates a main office and one branch in tire district. Albany, and one branch in each of the suburban Considering first the effect of Applicant’s pro­ townships of Guilderland and Colonie. It is the posal on competition in the upstate areas smallest of five banks in the City of Albany, involved, it does not appear that competition the seventh largest of ten banks located in would be adversely affected in any of such areas. the area it serves (consisting of the City of Al­ Distances separating the four existing upstate bany and its principal suburbs in Albany County, banks range from 83 to 165 miles, and no signifi­ and the western portion of Rensselaer County), cant competition appears to exist between any two and the sixteenth largest of 36 banks in the Fourth of them, or between any of them and either Bank Banking District of New York. The three largest of New York or County Trust. Exchange Bank banks in Albany range in deposit size from $170 and the proposed Niagara Bank are the only up­ million to $862 million, while the fourth largest, a state subsidiaries located in the same Banking Dis­ subsidiary of Empire Shares Corporation, a regis­ trict, and potential competition between those tered bank holding company, has deposits of $26 banks is limited by the “home office protection” million. feature of New York branching law and by the Metropolitan Bank ($21 million deposits), 70 mile distance between the only office of Ex­ which was established in 1964, is the smallest of change Bank and the proposed office of Niagara five banks in the City of Syracuse, where it oper­ Bank. With respect to the Albany, Syracuse, Endi­ ates its only office. It is the eleventh largest of 25 cott, and Buffalo markets, Applicant’s proposal banks in the Sixth Banking District. The four could have significant procompetitive effects by larger banks in Syracuse range in deposit size providing customers in those areas with a full from $166 million to $253 million. service alternative to banks which presently domi­ Endicott Bank ($34 million deposits) is the nate those markets, without appreciably increasing smallest of three banks with offices in Endicott, barriers to the entry of other potential the smallest of four banks with offices in the “tri­ competitors. The presently high level of concen­ ple cities” area of Binghamton, Endicott, and tration in each of those areas may thus eventually Johnson City, and the only bank in its area not be meaningfully reduced through the increased Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN □ APRIL 1969 ability of the proposed subsidiary banks to com­ as could arise in the future, is an adverse consider­ pete effectively for business originating in those ation with respect to Applicant’s proposal, the areas. The proposed acquisition of Exchange significance of that consideration does not appear Bank, which is a viable and effective competitor such as to warrant the conclusion that competi­ within its market, would not have procompetitive tion in the area served by Bank of New York and effects of the same magnitude as those foreseen in County Trust may be substantially lessened, or the case of the other four upstate banks; however, that any tendency toward monopoly would result. Exchange Bank is by no means a dominant insti­ Two other competitive considerations relating tution in its area, and its acquisition by Applicant to the proposed affiliation of Bank of New York appears consistent with the preservation of com­ and County Trust warrant mention. First, the petition in the Olean area. judgment that there is no reasonable probability The proposed affiliation of Bank of New York that Bank of New York would compete signifi­ and County Trust under Applicant’s control raises cantly with County Trust in the future is not as competitive issues which require somewhat closer readily applicable to a holding company system analysis. Bank of New York is the tenth largest having Bank of New York as its lead bank. Sig­ and County Trust the twelfth largest bank within nificant competition by such a holding company the area encompassed by New York City, West­ in the Westchester County market would not ap­ chester County, and Nassau County. Although pear to require acquisition of the dominant bank neither bank has offices within the immediate area in that county, and entry through alternative served by the other. County Trust does compete means could serve to inject new and significant with New York City banks for the business of in­ competition into that area. In addition, if County dividuals who reside in its service area and com­ Trust were not a member of Applicant’s system, mute to employment in the City, and New York the possibility would exist that, at some future City banks must also be regarded as reasonably date, it might itself take the lead in the formation convenient banking alternatives for corporations of a separate holding company which could be located in Westchester County. In addition, Bank competitive with Applicant and other large orga­ of New York and County Trust could legally nizations in other sections of the State. branch into each other’s immediate service areas A judgment as to the relative significance of and both have the financial ability to do so. These those competitive considerations which are ad­ circumstances, however, are in large part offset by verse to Applicant’s proposal and those which are the earlier-discussed specialization of the two favorable thereto requires an appreciation of the banks in different areas of banking service. De­ differences between the structure of the upstate spite the general competitive ability of each of the markets in New York and that of the New York banks, and despite the fact that, based on City area. As is indicated by the earlier discussion geographical considerations, they would appear to of the structures of the Albany, Syracuse, and be at least potential competitors, appraisal of the Buffalo areas, it is typical of the upstate areas that principal service offerings of Bank of New York a very limited number of banks exercise a domi­ and County Trust clearly indicates that their affil­ nant influence over banking in each area and con­ iation would not eliminate singificant competition trol a preponderance of the deposits originating between them. Even in the unlikely event that ei­ therein. The largest banks in the State are, of ther or both of the banks were to change their course, concentrated in the New York City area, traditional patterns of service, the impact of such but, because State law limits branching by such a change on the overall level of competition Banks to New York City, Westchester, and Nas­ would be relatively negligible. Bank of New York sau Counties, the extent to which competition by and County Trust both face significant competi­ such banks can offset existing concentration in the tion from several substantially larger banking upstate areas is limited by geographical considera­ organizations, and it does not appear that the ad­ tions which make them inconvenient alternatives ditional competition which either could provide to for any but the largest customers upstate. Bank the other would result in significantly improved holding companies, which are not limited by customer alternatives. Therefore, although the branching restrictions, can, by making available to elimination of such competition as presently exists small upstate subsidiaries the assistance of a via­ between Bank of New York and County Trust, or ble affiliate, serve to offset to a considerable extent Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 367 the disadvantages to which the upstate subsidiaries competition which could arise in the upstate mar­ are subject in competing with the dominant banks kets if Bank of New York and County Trust were in their areas and, in so doing, can increase bank­ both to form separate holding companies with up­ ing competition and decrease concentration within state affiliates, it would appear that the structure such areas. Applicant has consciously undertaken of such companies would likely be different from to structure its system in a manner which would that of Applicant with respect to the size of the maximize the potential benefits to competition in upstate banks which would be included; it is by the upstate markets. Except for Exchange Bank, no means clear that the effects in the upstate mar­ each of the existing proposed upstate subsidiaries kets from such formations would be more is the smallest independent bank in a significant competitively desirable than those which would market dominated by a few large banking organi­ result from Applicant’s proposal. On balance, the zations. In the Buffalo area, the most heavily con­ Board concludes that consummation of Applicant’s centrated major banking market in the State, Ap­ proposal would have competitive effects in the plicant’s entry would be effected through State of New York and in the upstate markets in­ acquisition of a newly chartered bank. It is Appli­ volved which would promote the public interest, cant’s contention that, with the support of Bank and that these considerations more than offset the of New York and County Trust, these banks can adverse implications of the affiliation of Bank of be developed into significant competitors in their New York and County Trust. areas. To successfully do so, however, will require This, it should be clear, is not to suggest that a considerable management resources and varied proposal which may substantially lessen competi­ banking capabilities and experience,, as well as tion or tend to create a monopoly in one area is substantial financial resources. Applicant forceibly saved because, in some other area, the competitive asserts that neither Bank of New York nor Coun­ effect would be favorable. The Act does not per­ ty Trust alone has the range of capabilities or the mit a balancing of a substantial loss of resources needed for the successful accomplish­ competition in one area against a significant in­ ment of this undertaking while at the same time crease in competition in another; on the contrary, meeting the needs of its own customers, but that it requires that an application be denied if its ef­ their complementary strengths will enable them, fect may be substantially to lessen competition or through the proposed holding company, to pro­ to tend to create a monopoly in any section of the vide the leadership necessary for its success. country, unless the benefits to the community con­ The principal issue is whether the anticompeti­ venience and needs clearly outweigh such tive effects of the proposed affiliation of Bank of anticompetitive effects. But when, as here, the anti­ New York and County Trust are sufficiently seri­ competitive effects of a proposal are not so sub­ ous as to condemn the entire proposal. The Board stantial in any area as to violate the antitrust concludes that they are not. The combined standard of the Act, it is clearly appropriate, in deposits of Bank of New York and County Trust determining whether the public interest would be are substantially lower than those held by seven served by consummation of the transaction, to banks located in New York City. Applicant would view the competitive considerations as consistent control only about 3 per cent of the total deposits with that interest based on the overall effect of the held by banks in the New York City-Westchester- proposal, rather than to condemn the entire pro­ Nassau County market and, as earlier noted, posal because of limited anticompetitive effects in little existing competition would be eliminated by a given area. the proposed affiliation. The possibility of signifi­ For the foregoing reasons, competitive consid­ cant future competition between Bank of New erations are regarded as consistent with approval York and County Trust also seems remote, except of the subject application. Consummation of Appli­ in the event that either or both were to form cant’s proposal would not result in a monopoly or holding companies not including the other as a be in furtherance of any combination, conspiracy, subsidiary. The significance of the elimination of or attempt to monopolize the business of banking such potential competition, insofar as the New in any area, and would not substantially lessen York City area is concerned, is minimized by the competition or tend to create a monopoly in any large number of strong competitors in that mar­ section of the country. ket. With respect to the loss of potential Financial and managerial resources and future Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN □ APRIL 1969 prospects. The projected financial condition of Applicant’s proposal to the convenience and needs Applicant, a new corporation, is regarded as satis­ of the public would be to make it possible for factory. Its management, which will be drawn these banks to offer a much broader range of principally from Bank of New York and County banking services than they have offered or can of­ Trust, is also regarded as satisfactory, and its fer as independent banks, and to make available prospects, based upon those of the subsidiary to the Buffalo area a new alternative source of banks, appear favorable. banking services. Both Bank of New York and County Trust are Considerations under this factor weigh in favor in excellent financial condition with competent of approval of the application. management, and the prospects of both are re­ Summary and conclusion. On the basis of all garded as favorable regardless of whether the relevant facts contained in the record, and in the present application is approved. light of the factors set forth in section 3(c) of the The financial condition and management of the Act, it is the Board’s judgment that the proposed existing upstate banks are reasonably satisfactory. transaction would be in the public interest, and However, they would likely be benefitted by the that the application should be approved. greater facility for raising capital and from the additional management depth which Applicant’s Dissenting Statement of Governor Robertson proposal would provide, and their prospects would be considerably improved as a result of the My dissent from the Board’s approval of greater breadth of services which they would be B.N.Y. Company’s formation as a bank holding able to offer their customers. Niagara Bank’s pro­ company relates to my appraisal of fhe likely ad­ posed capital of $4 million appears adequate, its verse impact of the proposal in the New York management, which will be drawn from Bank of City Metropolitan area, and takes into considera­ New York and County Trust, appears competent, tion the probable, but limited, benefits to the rele­ and its prospects, as reflected by Applicant’s vant upstate bank markets. projection that the bank will have about $16 mil­ Consummation of Applicant’s proposal is not lion in deposits after three years of operation, are likely to have any significant anticompetitive con­ favorable. sequences in the Endicott, Olean, Albany, Syra­ Considerations under the banking factors are cuse, or Buffalo areas; particularly in the Buffalo consistent with approval of the application as they area where Applicant will establish a new bank. In relate to Applicant, Bank of New York, and one or more of these areas some benefits in the County Trust, and weigh in favor of approval as nature of new, improved, or more convenient they relate to the proposed upstate subsidiary banking services will undoubtedly result. Thus, banks. were only the upstate communities involved, I Convenience and needs of the communities in­ could join in the Board’s approval action for the volved. Applicant’s proposal would have no signifi­ reason that, anticompetitive consequences absent, cant effect on the convenience and needs of and the likelihood of some benefit to the com­ residents or businesses in New York City or West­ munities being evidenced, approval would be chester County. Residents of those areas presently indicated. However, viewing the application in its have available a complete range of banking serv­ entirety in the light of the applicable statutory ices from several sources; customers of County standards, I am unable to find a resulting beneficial Trust, however, would be able to obtain, through consequence that would warrant approval. that bank, somewhat more convenient access to In my judgment, the anticompetitive effects rea­ the wholesale type services offered by Bank of sonably associated with the proposed affiliation of New York. County Trust Company and the Bank of New It does not appear that there are any major York are substantial, and are in no measure out­ banking needs in the upstate areas which are not weighed by compensating benefits to their com­ being met by the larger banks located there. How­ mon trade market—New York City, Westchester ever, none of the proposed subsidiary banks County, and Nassau County. Both County Trust presently serves all segments of the banking pub­ Company and Bank of New York have given rea­ lic, because of limited resources and lack of spe­ sons why each would not consider de novo entry cialized knowledge. The principal contribution of into the head office area of the other. I am unwill- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 369 ing to apply these reasons in support of approval nors, pursuant to section 3(a)(3) of the Bank action on this application. Rather than approve Holding Company Act of 1956 (12 U.S.C. this proposal, with the resulting elimination of 1842(a)(3)), and section 222.3(a) of Federal competition between Bank of New York and Reserve Regulation Y (12 CFR 222.3(a)), an ap­ County Trust, and preclusion of potential compe­ plication by Denver U.S. Bancorporation, Inc., tition between them, I would deny the application Denver, Colorado, a registered bank holding com­ in order to require each to use its sizable position pany, for the Board’s prior approval of the ac­ (Bank of New York—$1.3 billion of deposits; quisition of 80 per cent or more of the voting County Trust Company—$781 million of depos­ shares of Arkansas Valley Bank, Pueblo, Colora­ its) either to enter de novo the areas principally do. served by the other, or to seek alternative affilia­ As required by section 3(b) of the Act, the tions of a size and in such locale as likely to pro­ Board gave written notice of receipt of the appli­ duce considerably less anticompetitive impact than cation to the Colorado State Banking Board, and is to be anticipated from this proposal. Under requested its views and recommendation. The New York State law, each can merge into and es­ State Banking Boad recommended approval of the tablish de novo branches in the head office county application. of the other. Considering the size of the two Notice of receipt of the application was pub­ banks and their highly qualified and experienced lished in the Federal Register on October 3, 1968 management, either could structure an affiliation (33 Federal Register 14799), providing an oppor­ that would offer a potential for obtaining the geo­ tunity for interested persons to submit comments graphic and product market result that each seeks, and views with respect to the proposed transac­ without the anticompetitive consequence inherent tion. A copy of the application was forwarded to in the subject proposal. Control, as proposed, of the Department of Justice for its consideration. the largest bank headquartered in Westchester Time for filing comments and views has expired County and of a $1.3 billion New York City bank and all those received have been considered by should be permitted only upon a clear showing the Board. that such affiliation is required in the public inter­ It is hereby ordered, for the reasons set forth est—that is, that major banking needs within the in the Board’s Statement of this date, that said communities involved are unserved and will re­ application be and hereby is approved, provided main substantially unserved absent consummation that the action so approved shall not be consum­ of the proposed affiliation. No evidence was ad­ mated (a) before the thirtieth calendar day duced with respect to such unserved need in the following the date of this Order or (b) later than New York City area. three months after the date of the Order, unless In sum, the benefits to the upstate communities such period is extended for good cause by the that may result from Applicant’s formation have Board or by the Federal Reserve Bank of Kansas no relevant overweighing effect on the significantly City pursuant to delegated authority. adverse competitive consequences I foresee in Dated at Washington. D.C., this 24th day of the New York City-Westchester County area. In March, 1969. this circumstance, the application should be de­ By order of the Board of Governors. nied. Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, and Sherrill. Ab­ DENVER U.S. BANCORPORATION, INC., sent and not voting: Governors Maisel and Brimmer. DENVER, COLORADO (Signed) Robert P. Forrestal, In the matter of the application of Denver Assistant Secretary. U.S. Bancorporation, Inc., Denver, Colorado, for approval of the acquisition of 80 per cent or more [seal] of the voting shares of Arkansas Valley Bank, Statement Pueblo, Colorado. Denver U.S. Bancorporation, Inc., Denver, Col­ Order Approving Application Under orado, (“Applicant”), a registered bank holding Bank Holding Company Act company, has applied to the Board of Governors, There has come before the Board of Gover­ pursuant to section 3(a)(3) of the Bank Holding Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN □ APRIL 1969 Company Act of 1956 (12 U.S.C. 1842(a)(3)), ing area of any size is the Colorado Springs area for prior approval of the acquisition of 80 per 43 miles to the north. Arkansas Valley Bank cent or more of the voting shares of Arkansas ranks fourth in size of total deposits held of the Valley Bank, Pueblo, Colorado. Applicant controls seven commercial banks in Pueblo. The three six subsidiary banks with total deposits aggregat­ larger banks hold 80 per cent of total Pueblo de­ ing $497 million.1 Arkansas Valley Bank has total posits, and the three smaller banks combined hold deposits of about $14 million. 8.6 per cent. Arkansas Valley Bank’s chief com­ Views and recommendation of supervisory au­ petition is with the other banks in the city, which thority. As required by section 3(b) of the Act, also are the only other banks in Pueblo County. notice of receipt of the application was given to, Consummation of Applicant’s proposal would and views and recommendation requested of, the not have a significant effect on State-wide concen­ Colorado State Banking Board, which recom­ tration, and would have no effect on concen­ mended approval of the application. tration in any relevant area within the State. Statutory considerations. Section 3(c) of the Nor is there reason to believe that the proposed Act provides that the Board shall not approve an transaction would result in a monopoly or be in acquisition that would result in a monopoly or be furtherance of any combination, conspiracy, or at­ in furtherance of any combination or conspiracy tempt to monopolize the business of banking in to monopolize or attempt to monopolize the busi­ any relevant area. ness of banking in any part of the United States. It does not appear that consummation of Appli­ Nor may the Board approve a proposed acquisi­ cant’s proposal would have any adverse effect on tion the effect of which, in any section of the existing or potential competition. Applicant’s pres­ country, may be substantially to lessen competi­ ent subsidiary banks are all located more than tion, or to tend to create a monopoly, or which in 100 miles from Arkansas Valley Bank and there any other manner would be in restraint of trade, is no significant competition between any of them unless the Board finds that the anticompetitive ef­ and Arkansas Valley Bank. Potential competition fects of the proposed transaction are clearly out­ between Arkansas Valley Bank and Applicant’s weighed in the public interest by the probable subsidiaries is limited by distance and by the effect of the transaction in meeting the conveni­ State’s prohibition against branching. While affili­ ence and needs of the community to be served. In ation of Arkansas Valley Bank with Applicant each case the Board is required to take into con­ might reasonably be expected to increase the for­ sideration the financial and managerial resources mer’s competitive effectiveness, this result is and future prospects of the bank holding com­ viewed by the Board as a desirable one which pany and the banks concerned, and the convenience should not adversely affect the viability of its and needs of the community to be served. competitors. Competitive effect of proposed transaction. Ap­ In light of the foregoing considerations, and all plicant, the largest bank holding company in the facts of record, the Board concludes that con­ Colorado,- and the State’s largest banking organi­ summation of the proposed transaction would not zation, controls 14.7 per cent of total commercial substantially lessen competition, tend to create a bank deposits. Arkansas Valley Bank holds .4 per monopoly, nor in any other manner restrain trade cent of total State deposits, and 11.3 per cent of in any section of the country. the deposits in Pueblo. Financial and managerial resources and future Arkansas Valley Bank’s primary service area prospects. The financial condition of Applicant encompasses, generally, the City of Pueblo, which and its present subsidiary banks is regarded as is the county seat of Pueblo County, and with a reasonably satisfactory, and would be improved population of 104,000, is the largest city in south­ by implementation of plans outlined by Applicant ern Colorado. The closest population and market- for retirement, within the next few months, of all short-term debt of the holding company, and for 1 Banking data are as of June 29, 1968. The six sub­ sidiary banks include The Poudre Valley National Bank increasing the capital of two of the subsidiary of Fort Collins, Fort Collins, Colorado, whose acquisi­ banks. Management of Applicant and its subsidi­ tion by Applicant has been approved this date by the ary banks is satisfactory, and their prospects ap­ Board. 2 Giving effect to its proposed acquisition of The Poudre pear favorable. Valley National Bank of Fort Collins. See footnote 1. As related to Arkansas Valley Bank, these fac- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 371 tors are viewed as reasonably satisfactory. the application and requested his views and rec­ However, it is noted that more experienced and ommendation. The Comptroller recommended ap­ greater depth of management is needed in Arkan­ proval of the application. sas Valley Bank, and could be realized upon its Notice of receipt of the application was pub­ acquisition by Applicant. Considerations under lished in the Federal Register on July 11, 1968 this factor are consistent with and weigh toward (33 Federal Register 9979), providing an oppor­ approval of the application. tunity for interested persons to submit comments Convenience and needs of the communities in­ and views with respect to the proposed transac­ volved. The major banking requirements of Pueb­ tion. A copy of the application was forwarded to lo appear adequately met by the existing banking the United States Department of Justice for its structure. However, Applicant’s proposal to have consideration. Time for filing comments and views Arkansas Valley Bank initiate certain new services has expired and all those received have been con­ and improve existing ones, and, by means of loan sidered by the Board. participations, to enable Arkansas Valley Bank to It is hereby ordered, for the reasons set forth attract larger borrowers than it can under its pres­ in the Board’s Statement of this date, that said ent lending limits, should increase Arkansas Val­ application be and hereby is approved, provided ley Bank’s attractiveness as a banking alternative. that the application so approved shall not be con­ This prospect, and that of an additional source of summated (a) before the thirtieth calendar day expanded banking service, lend support to ap­ following the date of this Order or (b) later than proval of the application. three months after the date of this Order, unless Summary and conclusion. On the basis of all such period is extended for good cause by the the relevant facts contained in the record, and in Board or by the Federal Reserve Bank of Kansas the light of the factors set forth in section 3(c) of City pursuant to delegated authority. the Act, it is the Board’s judgment that the pro­ Dated at Washington, D.C., this 24th day of posed transaction would be in the public interest March, 1969. and that the application should be approved. By order of the Board of Governors. Voting for this action: Chairman Martin and Gov­ DENVER U.S. BANCORPORATION, INC., ernors Mitchell, Daane, and Sherrill. Voting against this action: Governor Robertson. Absent and not DENVER, COLORADO voting: Governors Maisel and Brimmer. In the matter of the application of Denver (Signed) Robert P. Forrestal, U.S. Bancorporation, Inc., Denver, Colorado, for Assistant Secretary. approval of acquisition of 80 per cent or more of [seal] the voting shares of The Poudre Valley National Bank of Fort Collins, Fort Collins, Colorado. Statement Denver U.S. Bancorporation, Inc., Denver, Col­ Order Approving Appication Under orado (“Applicant”), a registered bank holding Bank Holding Company Act company, has applied to the Board of Governors, There has come before the Board of Gover­ pursuant to section 3(a)(3) of the Bank Holding nors, pursuant to section 3(a)(3) of the Bank Company Act of 1956 (12 U.S.C. 1842(a)(3)), Holding Company Act of 1956 (12 U.S.C. for prior approval of the acquisition of 80 per 1842(a)(3)), and section 223.(a) of Federal cent or more of the voting shares of The Poudre Reserve Regulation Y (12 CFR 222.3(a)), an Valley National Bank of Fort Collins, Fort Col­ application by Denver U.S. Bancorporation, Inc., lins, Colorado (“Poudre Bank”). Denver, Colorado, a registered bank holding com­ Views and recommendation of supervisory pany, for the Board’s prior approval of the authority. As required by section 3(b) of the Act, acquisition of 80 per cent or more of the voting the Board notified the Comptroller of the Curren­ shares of The Poudre Valley National Bank of cy of receipt of the application and requested his Fort Collins, Fort Collins, Colorado. views and recommendation thereon. The Comp­ As required by section 3(b) of the Act, the troller recommended approval of the application. Board notified the Comptroller of the Currency of Statutory considerations. Section 3(c) of the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BULLETIN □ APRIL 1969 Act provides that the Board shall not approve an which range in deposit size from $1.8 million to acquisition that would result in a monopoly or about $20 million. would be in furtherance of any combination or Fort Collins (population 40,000) is located conspiracy to monopolize or to attempt to monop­ about 65 miles north of Denver, and about 30 olize the business of banking in any part of the miles northwest of Greeley, the site of Applicant’s United States. Nor may the Board approve a pro­ closest subsidiary bank. There appears to be no posed acquisition the effect of which, in any sec­ significant competition between Poudre Bank and tion of the country, may be substantially to lessen any of Applicant’s present subsidiary banks. In competition, or to tend to create a monopoly, or view of a legal prohibition against branching in which in any other manner would be in restraint Colorado, potential competition would appear to of trade, unless the Board finds that the anticom­ depend upon the development of closer commeripetitive effects of the proposed transaction are cal relationships between the Fort Collins and clearly outweighed in the public interest by the Greeley areas. The existing highway structure in probable effect of the transaction in meeting the the intermediate area constitutes a barrier to the convenience and needs of the community to be development of a homogeneous metropolitan area, served. In each case, the Board is required to take however, and makes it unlikely that significant into consideration the financial and managerial re­ competition would develop between Poudre Bank sources and future prospects of the bank holding and Applicant’s Greeley subsidiary in the foresee­ company and the banks concerned, and the con­ able future. The development of future venience and needs of the community to be competition with other subsidiaries of Applicant served. appears even less likely. Competitive effect of proposed transaction. Ap­ With respect to the effect which the proposed plicant, the second largest banking organization in acquisition would have on the three competing the State, controls five subsidiary banks, all of banks in Fort Collins, it appears that both Poudre which are located in Colorado. Its largest subsidi­ Bank and the larger bank in that city are present­ ary bank, Denver United States National Bank, ly effective, full-service competitors, but that the Denver, Colorado, has deposits of $405 million; 1 smaller banks presently compete principally in the deposits of the four other subsidiaries aggregate area of personal services. It does not appear that $65 million.2 Acquisition of Poudre Bank, which any increase in the competitive ability of Poudre has deposits of $27 million, would make Appli­ Bank as a result of Applicant’s proposal would cant the largest banking organization in the State, adversely affect the viability or competitive effec­ with control of almost 15 per cent of the deposits tiveness of any of the competing banks to any un­ held by all banks located therein, an increase of due extent. about .8 per cent in its present share. Consummation of the proposal would not result Poudre Bank is the second largest of four in a monopoly or be in furtherance of any banks located in Fort Collins, and the second combination, conspiracy or attempt to monopo­ largest of ten banks located in Larimer County. lize, nor would it substantially lessen competition, The principal competitors of Poudre Bank are the tend to create a monopoly, or restrain trade in larger bank in Fort Collins ($44 million depos­ any section of the country. its), which is a subsidiary of Western Bancorpora­ Financial and managerial resources and future tion, a California-based holding company, and the prospects. The financial condition of Applicant two smaller, recently established banks in the city, and its present subsidiary banks is regarded as which have deposits of $4 million and $2.6 mil­ reasonably satisfactory, and would be improved lion, respectively. Little competition is provided by implementation of plans outlined by Applicant by the six outlying banks in Larimer County, for retirement, within the next few months, of all i All banking data are as of June 29, 1968, unless other­ short-term debt of the holding company, and for wise noted. increasing the capital of two of the subsidiary 2 In addition, the Board has today approved an applica­ tion by Applicant to acquire voting shares of Arkansas banks. Management of Applicant and its subsidi­ Valley Bank, Pueblo, Colorado, which has total deposits ary banks is satsifactory, and their prospects ap­ of $14 million. Consummation of both that proposal and pear favorable. the present one would result in Applicant's control of just over 15 per cent of deposits in the State. The financial condition of Poudre Bank is Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 373 satisfactory, and its management, although some­ Dissenting Statement of what lacking in experience, appears competent. Governor Robertson Control of the bank is presently held by a corpo­ The Board has today approved two applications ration which has been attempting to sell its hold­ by Denver U.S. Bancorporation pursuant to which ing in the bank for about three years. Bancorporation will acquire the Arkansas Valley Consummation of Applicant’s proposal would Bank, Pueblo, and the Poudre Valley National provide Poudre Bank with stability of ownership Bank of Fort Collins. I joined in the Board’s ap­ and management. In that respect, considerations proval of the Arkansas Valley Bank; however I under the banking factors weigh in favor of ap­ would deny Applicant’s proposal to acquire the proval of the application. Poudre Valley Bank. Convenience and needs of the communities in­ The Arkansas Valley Bank, the fourth largest volved. Consummation of the proposed acquisi­ of seven banks in Pueblo, holds 11 per cent of tion will not affect the convenience or needs of that city’s total bank deposits. The three banks customers located in areas served by Applicant’s larger than it hold 41, 23, and 16 per cent, re­ present subsidiaries. spectively, of such deposits. The Arkansas Valley Bank will be the only bank holding company sub­ Fort Collins is located in a valley lying immedi­ sidiary in the Pueblo area and will be located over ately east of the Rocky Mountain foothills in 100 miles from the nearest of Applicant’s present north-central Colorado. The city is the seat of subsidiary banks. The record satisfactorily estab­ Larimer County, the home of Colorado State Uni­ lishes that there is no present competition between versity, and the commercial and transportation the proposed subsidiary and any of Applicant’s center for the surrounding agricultural region. present banks, nor is it reasonably assumed that Banking needs of the community appear to be ad­ such competition will develop. Lending some sup­ equately served by four banks located there, port to approval of the application is the likeli­ although the two smaller banks in the city offer a hood that Applicant’s ownership of the Arkansas much more limited range of services than Poudre Valley Bank will provide that bank with required Bank and its larger competitor. It is not anticipat­ experienced management personnel. The absence ed that any significant new or improved services of adverse competitive considerations, and the li­ will result from Applicant’s ownership of Poudre kelihood of some benefit to the bank, justify Bank. However, all four banks in the area main­ approval of this application. tain a relatively high ratio of loans to deposits,, an The facts presented with respect to Applicant’s indication of the strong loan demand in the area. proposed acquisition of the Poudre Valley Bank Cattle feeder loans are presently being handled in Fort Collins offer no such justification for ap­ through participations with correspondent banks. proval, but rather, in my judgment, require denial. Although there is no evidence that credit-worthy Poudre Valley Bank controls 35 per cent of the total deposits held by the four banks in Fort Col­ borrowers are not presently being served, the lins, and is second in size to a bank holding com­ ability of Applicant to provide the community pany subsidiary which alone controls 57 per cent with increased funds would provide added assur­ of such deposits. Following Applicant’s acquisi­ ance of a continuing supply of loan funds in the tion of the Poudre Valley Bank, two holding com­ future. pany banks will control 92 per cent of the total Considerations relating to the convenience and bank deposits in that area. The two remaining needs of the communities involved are consistent banks in Fort Collins, considerably smaller than with approval of the application, and provide either of their two larger competitors, hold, re­ some weight in support thereof. spectively, but 3 and 5 per cent of such deposits. Summary and conclusion. On the basis of all Applicant’s nearest existing subsidiary to Fort relevant facts contained in the record, and in the Collins is in Greeley, 30 miles distant. Although light of the factors set forth in section 3(c) of the little competition presently exists between the Act, it is the Board’s judgment that the proposed Greeley and Fort Collins banks, the relative prox­ transaction would be in the public interest and imity of their locations and the continued devel­ that the application should be approved. opment of the areas between them suggests, in my Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

374 FEDERAL RESERVE BULLETIN □ APRIL 1969 judgment, a very real potential for competition Holding Company Act of 1956 (12 U.S.C. between Applicant’s Greeley subsidiary and the 1842(a)(3)) and section 222.3(a) of Federal Re­ Poudre Valley Bank that will be precluded by this serve Regulation Y (12 CFR 222.3(a)), an appli­ proposal. There is nothing in the record before cation by The First National Bank of Fort Worth, the Board that offsets the anticompetitive consid­ Fort Worth, Texas, a registered bank holding erations above mentioned so as to justify approval company, for the Board’s prior approval of the of the application. There is no indication of an acquisition of 24.9 per cent of the voting shares existing deficiency in the banking services provid­ of Great Southwest National Bank of Arlington, ed by the Fort Collins' banks, either directly or in Arlington, Texas, a proposed new bank. participation with their correspondent banks. Ac­ As required by section 3(b) of the Act, the cordingly, on the basis of the facts presented, and Board notified the Comptroller of the Currency of summarized above, I would deny Applicant’s pro­ receipt of the application and requested his views posal with respect to the Poudre Valley Bank. and recommendation. The Comptroller recom­ Regarding both applications discussed, I am mended approval of the application. constrained to voice again my concern as to the Notice of receipt of the application was pub­ very real threat to the State’s banking structure by lished in the Federal Register on December 28, the continued expansion of Applicant’s system 1968 (33 Federal Register 19967), providing an and of the other three large Colorado-based hold­ opportunity for interested persons to submit com­ ing companies. In slightly over five years the por­ ments and views with respect to the proposed tion of deposits of all banks in the State con­ transaction. A copy of the application was for­ trolled by bank holding companies has escalated warded to the United States Department of Jus­ from 7 per cent to approximately 46 per cent if tice for its consideration. Time for filing com­ the acquisitions today approved by the Board are ments and views has expired and all those included. The recent pattern of bank acquisitions received have been considered by the Board. in Colorado reflects expansions of holding compa­ It is hereby ordered, for the reasons set forth ny systems beyond the Denver Metropolitan Area in the Board’s Statement of this date, that said ap­ into lesser-sized, but nonetheless vital, communi­ plication be and hereby is approved, provided that ties where the measure of adverse competitive im­ the acquisition so approved shall not be consum­ pact is less apparent. There is no question in my mated (a) before the thirtieth calendar day fol­ mind that each approval of an acquisition will lowing the date of this Order or (b) later than trigger similar proposals by competing bank hold­ three months after the date of this Order unless ing companies. This trend, if not curbed, offers no such period is extended for good cause by the reasonable alternative to smaller independent Board or by the Federal Reserve Bank of Dallas, banks within the State to the acceptance of take­ pursuant to delegated authority, and that Great over offers by the large Denver-based bank hold­ Southwest National Bank of Arlington shall be ing companies or by holding companies now in open for business not later than six months after process of formation. the date of this Order. Dated at Washington, D.C., this 27th day of THE FIRST NATIONAL BANK OF March, 1969. FORT WORTH, FORT WORTH, TEXAS By order of the Board of Governors. In the matter of the application of The First Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Maisel, and Sherrill. National Bank of Fort Worth, Fort Worth, Texas, Absent and not voting: Chairman Martin and Gov­ for approval of acquisition of 24.9 per cent of the ernor Brimmer. voting shares of Great Southwest National Bank (Signed) Robert P. Forrestal, of Arlington, Arlington, Texas, a proposed new Assistant Secretary. bank. [seal] Order Approving Application under Statement Bank Holding Company Act The First National Bank of Fort Worth, Fort There has come before the Board of Gover­ Worth, Texas (“Applicant”), a registered bank nors, pursuant to section 3(a)(3) of the Bank holding company, has applied to the Board of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 375 Governors, pursuant to section 3(a)(3) of the venience and needs of the community to be Bank Holding Company Act of 1956 (12 U.S.C. served. 1842(a)(3)), for prior approval of the acquisi­ Competitive effect of proposed transaction. Ap­ tion of 24.9 per cent of the voting shares of Great plicant, which holds $349 million in deposits,2 and Southwest National Bank of Arlington, Arlington, the related banks, with aggregate deposits of Texas (“Great Southwest”), a proposed new about $50 million, are all located in Fort Worth, bank. Texas. Applicant is the second largest bank in Applicant is a bank holding company by virtue Fort Worth, and the seventh largest banking orga­ of section 2(g)(2) of the Act, pursuant to which nization in the State of Texas. shares held by three corporations, all of the stock The proposed site of Great Southwest is the of which is held by trustees for the benefit of Ap­ Great Southwest Industrial District, a large and plicant’s shareholders or employees, are deemed rapidly growing distribution center located within to be controlled by Applicant. Through these cor­ the city limits of Arlington, Texas, about four porations, Applicant controls over 25 per cent of miles from downtown Arlington and about five the voting shares of three banks in Fort Worth, miles from downtown Grand Prairie, Texas. The Texas, and 24.9 per cent of the voting shares of site is located about 18 miles east of Fort Worth, another Fort Worth bank.1 The proposed acquisi­ and about the same distance west of Dallas. There tion would also be made by one of these corpora­ are three banks in each of the cities of Arlington tions. and Grand Prairie, the former ranging in deposit Views and recommendation of supervisory au­ size from $5 million to about $35 million, and the thority. As required by section 3(b) of the Act, latter holding deposits of $5 million to $16 mil­ the Board notified the Comptroller of the Cur­ lion. Applicant estimates that Great Southwest rency of receipt of the application and requested his will have about $5 million in deposits after three views and recommendation thereon. The Comp­ years of operation. troller replied that preliminary approval had been A large number of the employees at the Great given by his office to the organization of Great Southwest Industrial District reside in Dallas or Southwest with the thought that the subject appli­ Fort Worth, and a number of the residents of Ar­ cation should be approved. lington and Grand Prairie are employed in Dallas Statutory considerations. Section 3(c) of the or Fort Worth. To some extent, therefore, Appli­ Act provides that the Board shall not approve an cant and the related banks are alternative sources acquisition that would result in a monopoly or of banking services for customers which Great would be in furtherance of any combination or Southwest would seek to serve. However, in view conspiracy to monopolize or to attempt to monop­ of the fact that Great Southwest is a proposed olize the business of banking in any part of the new bank, the establishment of which is contin­ United States. Nor may the Board approve a pro­ gent upon approval of the present application, no posed acquisition the effect of which, in any sec­ existing or potential competition would be elimi­ tion of the country, may be substantially to lessen nated by consummation of the proposal. Further, competition, or to tend to create a monopoly, or it does not appear that the viability or competitive which in any other manner would be in restraint effectiveness of any competing bank would be ad­ of trade, unless the Board finds that the anticom­ versely affected. petitive effects of the proposed transaction are In the light of these facts, the Board concludes clearly outweighed in the public interest by the that consummation of the proposed acquisition probable effect of the transaction in meeting the would not result in a monopoly or be in further­ convenience and needs of the community to be ance of any combination, conspiracy, or attempt served. In each case the Board is required to take to monopolize the business of banking in any into consideration the financial and managerial re­ area. It does not appear that the effect of the sources and future prospects of the bank holding transaction would be to restrain trade, to substan­ company and the banks concerned, and the con- tially lessen competition, or to tend to create a monopoly in any section of the country. i These four banks are hereinafter jointly referred to as a All banking data are as of June 29, 1968, unless other­ “the related banks”. wise noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN □ APRIL 1969 Financial and managerial resources and future plication by Southeast Bancorporation, Inc., Mi­ prospects. The financial condition, management, ami, Florida, a registered bank holding company, and prospects of Applicant and the related banks for the Board’s prior approval of the acquisition are regarded as satisfactory. of 80 per cent or more of the voting shares of Ev­ Great Southwest is a proposed new bank, orga­ erglades Bank and Trust Company, Fort nization of which has received the preliminary Lauderdale, Florida. approval of the Comptroller of the Currency. Its As required by section 3(b) of the Act, the proposed capital appears adequate, its proposed Board notified the Florida Commissioner of Bank­ management appears competent, and its prospects ing of the application and requested his views and appear favorable. recommendation. The Commissioner advised the Considerations relating to the banking factors Board of his action approving the same proposal are regarded as consistent with approval of the under provisions of State law. application. Notice of receipt of the application was pub­ Convenience and needs of the communities in­ lished in the Federal Register on December 13, volved. Banking services adequate to meet the 1968 (33 Federal Register 18534), providing an needs of customers in the Southwest Industrial opportunity for interested persons to submit com­ District are presently being provided by banks in ments and views with respect to the proposed Arlington and Grand Prairie, and to some extent transaction. A copy of the application was for­ by banks in Dallas and Fort Worth. It is likely warded to the United States Department of Jus­ that larger companies in the area will continue to tice for its consideration. Time for filing com­ bank with the large banks in Dallas and Fort ments and views has expired and all those received Worth. The location of a bank within the In­ have been considered by the Board. dustrial District, however, would be a convenience It is hereby ordered, for the reasons set forth to employees and smaller firms within the area. in the Board’s Statement of this date, that said Considerations relating to the convenience and application be and hereby is approved, provided needs of the community which Great Southwest that the application so approved shall not be con­ would serve provide some weight in favor of ap­ summated (a) before the thirtieth calendar day proval of the application. following the date of this Order or (b) later than Summary and conclusion. On the basis of all three months after the date of this Order, unless relevant facts contained in the record, and in the such period is extended for good cause by the light of the factors set forth in section 3(c) of the Board or by the Federal Reserve Bank of Atlanta Act, it is the Board’s judgment that the proposed pursuant to delegated authority. acquisition would be in the public interest, and Dated at Washington, D.C., this 27th day of that the application should be approved. March, 1969. By order of the Board of Governors. SOUTHEAST BANCORPORATION, INC., Voting for this action: Chairman Martin and Gov­ MIAMI, FLORIDA ernors Robertson, Mitchell, Daane, and Sherrill. Ab­ sent and not voting: Governors Maisel and Brimmer. In the matter of the application of Southeast (Signed) Robert P. Forrestal, Bancorporation, Inc., Miami, Florida, for ap­ Assistant Secretary. proval of acquisition of 80 per cent or more of the [seal] voting shares of Everglades Bank and Trust Com­ pany, Fort Lauderdale, Florida. Statement Southeast Bancorporation, Inc., Miami, Florida (“Applicant”), a registered bank holding com­ Order Approving Application under pany, has applied to the Board of Governors, pur­ Bank Holding Act suant to section 3(a)(3) of the Bank Holding There has come before the Board of Gover­ Company of 1956 (12 U.S.C. 1842(a)(3)), for nors, pursuant to section 3(a)(3) of the Bank prior approval of the acquisition of 80 per cent or Holding Company Act of 1956 (12 U.S.C. more of the voting shares of Everglades Bank and 1842(a)(3)), and section 222.3(a) of Federal Trust Company, Fort Lauderdale, Florida (“Ever­ Reserve Regulation Y (12 CFR 222.3(a)), an ap­ glades Bank”). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 377 Views and recommendation of supervisory au­ stockholders; considering each such affiliated thority. As required by section 3(b) of the Act, group as a single banking organization, Everthe Board notified the Florida Commissioner of galdes Bank is the fourteenth largest of 19 bank­ Banking of receipt of the application and re­ ing organizations in the county. quested his views and recommendation thereon. Of Applicant’s present subsidiaries, one is The Commissioner advised the Board of his action located in Tampa (Hillsborough County), 250 approving the same proposal under provisions of miles northwest of Fort Lauderdale, and does not State law. compete to any extent with Broward County Statutory considerations. Section 3(c) of the banks. The other three subsidiary banks are lo­ Act provides that the Board shall not approve an cated 26-28 miles from Everglades Bank in Dade acquisition that would result in a monopoly or County, which is adjacent to, and south of, Brow­ would be in furtherance of any combination or ard County. A number of banks larger than conspiracy to monopolize or to attempt to monop­ the subject bank are located in the area inter­ olize the business of banking in any part of the vening its location and the location of the present United States. Nor may the Board approve a pro­ subsidiaries, and Everglades Bank does not com­ posed acquisition the effect of which, in any pete to any significant extent in Dade County. section of the country, may be substantially to Of the Dade County subsidiaries, only Appli­ lessen competition, or to tend to create a monop­ cant’s lead bank, First National Bank of Miami, oly, or which in any other manner would be in re­ draws an amount of business from Broward straint of trade, unless the Board finds that the County which is competitively significant. Analy­ anticompetitive effects of the proposed transaction sis of the business of First National Bank of Mi­ are clearly outweighed in the public interest by ami which originates in Broward County, the probable effect of the transaction in meeting however, indicates that the bulk of its loan busi­ the convenience and needs of the community to ness from that area results from a small number be served. In each case, the Board is required to of loans in excess of the legal lending limits of take into consideration the financial and manage­ Everglades Bank, and that a large percentage of rial resources and future prospects of the bank its deposits from that area are related to those holding company and the banks concerned, and loan transactions. It does not appear, therefore, the conveience and needs of the community to be that significant competition between Everglades served. Bank and present subsidiaries of Applicant would Competitive effect of proposed transaction. Ap­ be eliminated by consummation of Applicant’s plicant, the second largest banking organization in proposal. Further, in view of a State prohibition Florida, has four subsidiary banks 1 which, in the against branching, the same locational factors aggregate, hold $592 million in deposits, an amount equal to six per cent of the total deposits which have limited such competition in the past held by all banks located in the State.2 Acquisition are likely to prevent the development of signifi­ of Everglades Bank, which has $19.3 million in cant future competition between Everglades Bank deposits, would increase Applicant’s share of State and the present subsidiaries. deposits by . 1 per cent. Summarizing the competitive effects of the pro­ Everglades Bank ranks seventeenth in deposit posed transaction, it does not appear that size among 31 banks in Broward County, and consummation of Applicant’s proposal would re­ competes principally with four larger banks lo­ sult in a significant increase in banking concentra­ cated in downtown Fort Lauderdale. Although tion in any area, and no sigificant present or po­ Applicant would be the only bank holding com­ tential competition would be eliminated. Finally, pany to have a subsidiary bank in Broward County, in view of the size of Everglades Bank relative to several of the banks in that area are affiliated with that of other banks and banking organizations in other banks in the county by reason of common Broward County, it does not appear that there i Includes First City Bank of Tampa, acquisition of which would be any adverse effect upon the viability or by Applicant was approved by the Board in November competitive effectiveness of any competing bank. 1968. a All banking data are as of June 29, 1968, unless other­ In light of the foregoing, the Board concludes wise noted. that consummation of the proposed acquisition Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN □ APRIL 1969 would not result in a monopoly or be in further­ depends on the part-time services of a local attor­ ance of any combination, conspiracy or attempt to ney for fiduciary decisions, will have an active monopolize the business of banking in any area, trust department staffed by a full-time trust officer and would not restrain trade, substantially lessen and assisted by investment and other technical ad­ competition, or tend to create a monopoly in any vice. Also of some significance, in view of the section of the country. proximity of Everglades Bank to Port Everglades, Financial and managerial resources and future is the contemplated establishment of an interna­ prospects. The financial condition and manage­ tional banking department of the bank. ment of Applicant are satisfactory, and its pros­ Considerations relating to community conveni­ pects are favorable. Applicant has indicated its ence and needs support approval of the application. intention to strengthen the capital of two of its Summary and conclusion. On the basis of all subsidiary banks, and, in the light of those plans, relevant facts contained in the record, and in the light of the factors set forth in section 3(c) of the the financial condition of the subsidiary banks is also regarded as satisfactory. All of the subisidary Act, it is the Board’s judgment that the proposed acquisition would be in the public interest, and banks have competent management, and their that the application should be approved. prospects appear favorable. Applicant proposes, in the event its application is approved, to increase the present marginal capi­ CENTRAL BANKING SYSTEM, INC., tal of Everglades Bank. The bank would also ben­ OAKLAND, CALIFORNIA efit from the additional management strength In the matter of the application of Central which Applicant could provide. Its prospects, Banking System, Inc., Oakland, California, for ap­ which, in the light of reasonably satisfactory proval of acquisition of 80 per cent or more of growth in the past, are considered favorable in the voting shares of Livermore National Bank, any event, would be improved by its affiliation Livermore, California. with Applicant and as a result of improvements which Applicant contemplates making in its physi­ cal facilities. Order Approving Application Under Considerations under the banking factors Bank Holding Company Act provide some weight in favor of approval of the There has come before the Board of Gover­ application. nors, pursuant to section 3(a)(3) of the Bank Hold­ Convenience and needs of the communities in­ ing Company Act of 1956 (12 U.S.C. 1842(a)(3)) volved. Consummation of the proposal would not and section 222.3(a) of Federal Reserve Regula­ affect the convenience or needs of customers lo­ tion Y (12 CFR 222.3(a)), an application by cated in the communities served by Applicant’s Central Banking System, Inc., Oakland, California, present subsidiaries. for the Board’s prior approval of the acquisition It appears that the banking needs of the Fort of 80 per cent or more of the voting shares of Lauderdale and Broward County areas are pres­ Livermore National Bank, Livermore, California. ently being adequately served by the banks As required by section 3(b) of the Act, the located there. However, Everglades Bank is lo­ Board gave written notice of receipt of the appli­ cated in the southern part of Fort Lauderdale, cation to the Comptroller of the Currency and re­ about 17 blocks south of the downtown area in quested his views and recomendation. The which its four closest competitors are located, and Deputy Comptroller of the Currency recom­ the convenience of customers in that immediate mended approval of the application. area would be served by the improved and expanded Notice of receipt of the application was pub­ service offering which Applicant would provide. lished in the Federal Register on September 19, Evergaldes Bank currently pays a lower rate of in­ 1968 (33 Federal Register 14196), providing an terest on savings deposits than any but one other opportunity for interested persons to submit com­ bank in Broward County; it is Applicant’s inten­ ments and views with respect to the proposal. A tion, in the event its application is approved, to copy of the application was forwarded to the raise such rate to a competitive level. In addition, United States Department of Justice for its con­ it is contemplated that the bank, which currently sideration. Time for filing comments and views Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 379 has expired and all those received have been con­ copy of the application was forwarded to the sidered by he Board. United States Department of Justice for its con­ It is hereby ordered, for the reasons set forth sideration. Time for filing comments and views in the Board’s Statement of this date, that said has expired and all those received have been con­ application be and hereby is approved, provided sidered by the Board. that the action so approved shall not be consum­ It is hereby ordered, for the reasons set forth mated (a) before the thirtieth calendar day fol­ in the Board’s Statement of this date, that said lowing the date of this Order or (b) later than application be and hereby is approved provided three months after the date of this Order unless that the action so approved shall not be consum­ such time shall be extended by the Board, or by mated (a) before the thirtieth calendar day fol­ the Federal Reserve Bank of San Francisco pur­ lowing the date of this Order or (b) later than suant to delegated authority. three months after the date of this Order unless Dated at Washington, D.C., this 2nd day of such time shall be extended by the Board, or by April, 1969. the Federal Reserve Bank of San Francisco pur­ By order of the Board of Governors. suant to delegated authority. Dated at Washington, D.C., this 2nd day of Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, April 1969. and Sherrill. By order of the Board of Governors. (Signed) Robert P. Forrestal, Voting for this action: Chairman Martin and Gov­ Assistant Secretary. ernors Robertson, Mitchell, Daane, Maisel, Brimmer, and Sherrill. [seal] (Signed) Robert P. Forrestal, In the matter of the application of Central Assistant Secretary. Banking System, Inc., Oakland, California, for ap­ [seal] proval of acquisition of 80 per cent or more of Statement the voting shares of Peninsula National Bank of Burlingame, Burlingame, California. Central Banking System, Inc., Oakland, Califor­ nia (“Applicant”), a registered bank holding com­ Order Approved Application Under pany, has applied to the Board of Governors, pur­ Bank Holding Company Act suant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)), There has come before the Board of Gover­ for prior approval of the acquisition of 80 per nors, pursuant to section 3(a) (3) of the Bank cent or more of the voting shares of (1) Liver­ Holding Company Act of 1956 (12 U.S.C. more National Bank, Livermore, California (“Liv­ 1842(a)(3)) and section 222.3(a) of Federal ermore Bank”) and (2) Peninsula National Bank Reserve Regulation Y (12 CFR 222.3(a)), an of Burlingame, Burlingame, California (“Burlin­ application by Central Banking System, Inc., Oak­ game Bank”). Each of these applications has been land, California, for the Board’s prior approval of considered independently and is subject to a the acquisition of 80 per cent or more of the separate Board Order. However, because many of voting shares of Peninsula National Bank of Bur­ the facts and circumstances involved are common lingame, Burlingame, California. to both applications, this Statement contains the As required by section 3(b) of the Act, the Board’s findings and conclusions with respect to Board gave written notice of receipt of the appli­ both. cation to the Comptroller of the Currency and re­ Applicant controls two banks, Central Valley quested his views and recommendation. The National Bank, Oakland, California (“Oakland Acting Comptroller of the Currency recom­ Bank”) with deposits of $191 million, and First mended approval of the application. National Bank of Fresno, Fresno, California Notice of receipt of the application was pub­ (“Fresno Bank”) with deposits of $28 million.1 lished in the Federal Register on November 2, Livermore Bank operates one office with total de- 1968 (33 Federal Register 16130), providing an opportunity for interested persons to submit com­ 1 Banking data are as of June 30, 1968, unless otherwise ments and views with respect to the proposal. A noted, and refer to insured commercial banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN □ APRIL 1969 posits of less than $6 million. Burlingame Bank Applicant’s market share and on the degree of operates one office with total deposits of approxi­ concentration of banking resources in any rele­ mately $11 million. vant service area. Views and recommendation of supervisory au­ That no meaningful competition exists between thority. As required by section 3(b) of the Act, Applicant’s present subsidiaries and Livermore notice of receipt of the applications was given to Bank is explained principally by the facts that the Comptroller of the Currency and his views Bank is separated by 23 miles from the nearest and recommendations were requested. He recom­ office of any of Applicant’s subsidiaries, that no mended approval of both applications. primary service area of any banking office of the Statutory considerations. Section 3(c) of the holding company group overlaps or is contiguous Act provides that the Board shall not approve an to the primary service area of Livermore Bank, acquisition that would result in a monopoly or and that several of Applicant’s directors combined would be in furtherance of any combination or own or control, directly or indirectly, 36 per cent conspiracy to monopolize or to attempt to monop­ of the shares of Livermore Bank. In the Board’s olize the business of banking in any part of the judgment, there is little likelihood that significant United States. Nor may the Board approve a pro­ potential competition will develop between Liver­ posed acquisition the effect of which, in any more bank and the banks involved in the pro­ section of the country, may be substantially to posed affiliation. The facts supporting this lessen competition, or to tend to create a monop­ conclusion, among others, are those above stated, oly, or which in any other manner would be in re­ and the fact that the Livermore Bank and the pro­ straint of trade, unless the Board finds that the posed affiliated banks are separated by numerous anticompetitive effects of the proposed transaction intervening cities, banking offices, and physical are clearly outweighed in the public interest by barriers. the probable effect of the transaction in meeting Although two offices of Oakland Bank are lo­ the convenience and needs of the community to cated about three miles from Burlingame Bank, be served. In each case the Board is required to the facts of record show that the business each take into consideration the financial and manage­ bank derives from the service area of the other is rial resources and future prospects of the bank not significant. Burlingame Bank is 175 miles holding company and the banks concerned, and from Fresno Bank and 40 miles from Livermore the convenience and needs of the community to Bank; the San Francisco Bay separates the cities be served. of Burlingame and Livermore. Competitive effect of the proposed transaction. Acquisition of either or both of the proposed Applicant, with control of one-half of 1 per cent subsidiaries would not eliminate any significant of the total deposits in California, ranks thirteenth competition between Applicant’s present and pro­ among banking organizations in the State. Liver­ posed subsidiaries, nor have any adverse more Bank is the smallest bank in its primary competitive effect on other institutions in the rele­ service area, which is described as having an esti­ vant market areas. There appear to be no reasona­ mated population of between 60,000 and 70,000 ble likelihood that the acquisitions herein would, and encompassing the entire Livermore Valley in any meaningful way, preclude future competi­ which includes, in addition to Livermore, the City tion in any area. of Pleasanton and the community of Dublin. Six On the record before the Board, it is concluded of the nine banking offices located in the relevant that consummation of the proposed affiliations market area are offices of large State-wide bank would not result in a monopoly nor be in further­ systems. Burlingame Bank is the smallest bank in ance of any combination or conspiracy to monop­ its primary service area, which Applicant states is olize or attempt to monpolize the business of the City of Burlingame, a residential and light in­ banking in any relevant area; and would not sub­ dustrial community with a land area of less than stantially lessen competition, tend to create a five square miles and approximately 28,000 peo­ monopoly, nor in any other manner restrain trade ple. The competitors of Burlingame Bank are in any relevant section of the country. offices of four of the largest banks in the State. Financial and managerial resources and future Acquisition of either or both of the proposed sub­ prospects. Applicant became a bank holding com­ sidiaries would have but a negligible effect on pany in April 1968. Its management is essentially Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 381 the same as that of Oakland Bank, the lead bank ASSOCIATED BANK SERVICES, INC., in Applicant’s system; and its financial condition GREEN BAY, WISCONSIN and prospects relate directly to these factors in the In the matter of the application of Associated lead bank. Bank Services, Inc., Green Bay, Wisconsin, for Oakland Bank has been under its present approval of action to become a bank holding management since 1964. At periods since that company through the acquisition of SB per cent or date, certain aspects of the bank’s managerial pol­ more of the voting shares of Kellogg-Citizens Na­ icy and capital position have been, in the Board’s tional Bank of Green Bay, Green Bay; Manitowoc judgment, less than satisfactory. However, on the Savings Bank, Manitowoc, and The First National basis of information made available to the Board, Bank of Neenah, Neenah, all in Wisconsin. particularly the most recent bank examination date prepared by the Comptroller of the Currency —the Federal authority having primary super­ Order Approving Application Under visory responsibility over the Oakland Bank—it Bank Holding Company Act appears that the factors relating to management There has come before the Board of Gover­ and financial resources of the Oakland Bank are nors, pursuant to section 3(a)(1) of the Bank improved. Evidencing this fact is the favorable Holding Company Act of 1956 (12 U.S.C. recommendation given the subject proposal by the 1842(a)(1)) and section 222.3(a) of Federal Re­ Comptroller of the Currency. serve Regulation Y (12 CFR 222.3(a)),, an appli­ Managements of the Fresno Bank, Burlingame cation by Associated Bank Services, Inc., Green Bank and Livermore Bank, and their respective Bay, Wisconsin, for the Board’s prior approval of financial conditions are considered to be satisfac­ action whereby Applicant would become a bank tory. holding company through the acquisition of 80 On the basis of the evidence of record, and tak­ per cent or more of the voting shares of the fol­ ing into consideration the dominant role that the lowing three banks in Wisconsin: Kellogg-Citizens Oakland Bank and its management play in the National Bank of Green Bay, Green Bay; Manito­ overall operation of Applicant’s system, the Board woc Savings Bank, Manitowoc, and The First Na­ concludes that Applicant’s managerial and finan­ tional Bank of Neenah, Neenah. cial resources are generally fair and consistent As required by section 3(b) of the Act, the with approval of the application. Applicant’s pros­ Board notified the Comptroller of the Currency pects, and those of its present and proposed sub­ and the Commissioner of Banks of the State of sidiaries, appear to be favorbale. Wisconsin of receipt of the application and re­ Convenience and needs of the community quested their views and recommendations. The involved. The areas served by each of the two Comptroller recommended approval of the appli­ proposed subsidiaries presently have an adequate cation; the Commissioner of Banks advised that number of convenient, full-service banking offices. he would not disapprove the application. However, consummation of Applicant’s proposal Notice of receipt of the application was pub­ would, with respect to the areas involved, provide lished in the Federal Register on November 27, 1968 (33 Federal Register 17708,) which provided an additional source of full-service banking, and an opportunity for interested persons to submit contribute to a more vigorous competitive climate comments and views with respect to the proposed in their rspective communities. Considerations transaction. A copy of the application was for­ under the convenience and needs factor are con­ warded to the United States Department of Jus­ sistent with and are viewed as somewhat in favor tice for its consideration. The time for filing of approval. comments and views has expired and all those re­ Summary and conclusion. On the basis of all ceived have been considered by the Board. the relevant facts contained in the record,, and in It is hereby ordered, for the reasons set forth the light of the factors set forth in section 3(c) of in the Board’s Statement of this date, that said ap­ the Act, it is the Board’s judgment that the pro­ plication be and hereby is approved, provided that posed transactions would be in the public interest the action so approved shall not be consummated and that the applications should be approved. (a) before the thirtieth calendar day following the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN □ APRIL 1969 date of this Order or (b) later than three months convenience and needs of the community to be after the date of this Order,, unless such period is served. In each case, the Board is required to take extended for good cause by the Board or by the into consideration the financial and managerial re­ Federal Reserve Bank of Chicago pursuant to del­ sources and future prospects of the bank holding egated authority, company and the banks concerned, and the con­ Dated at Washington, D.C., this 3rd day of venience and needs of the community to be April, 1969. served. By order of the Board of Governors. Competitive effects of the proposed transaction. Kellogg Bank, with deposits of $88 million, is the Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, sixth largest banking organization in the State and and Sherrill. the largest of seven banks in Green Bay. One of (Signed) Robert P. Forrestal, these six is an affiliate by common stock owner­ Assistant Secretary. ship with Kellogg Bank. Combined, the affiliated |seal] banks hold total deposits of about $95 million, representing 44 per cent of total area deposits. Statement The second largest bank in Green Bay is a subsid­ Associated Bank Services, Inc., Green Bay, iary of The Marine Corporation, the second larg­ Wisconsin (“Applicant”), has filed with the est banking organization and holding company in Board, pursuant to section 3(a)(1) of the Bank the State. Kellogg Bank serves primarily Green Holding Company Act of 1956, an application of Bay and all or parts of the adjoining towns of Al­ approval of action to become a bank holding louez, Ashwaubenon, Howard, and Scott. The company through the acquisition of 80 per cent other six banks in Green Bay range in deposit size or more of the voting shares of Kellogg-Citizens from about $4 million to $47.5 million. Manito­ National Bank of Green Bay, Green Bay (“Kel­ woc Bank’s primary service area is the City of logg Bank”); Manitowoc Savings Bank, Manito­ Manitowoc. With $40 million in deposits, Manito­ woc (“Manitowoc Bank”), and The First Na­ woc Bank is the largest bank of three banks in the tional Bank of Neenah, Neenah (“Neenah Bank”), City, holding approximately 60 per cent of the all in Wisconsin. total deposits therein. The two other banks hold Views and recommendations of supervisory au­ deposits of $19 and $10 million, respectively. thorities. As required by section 3(b) of the Act, Neenah Bank, with deposits of $36 million, is the notice of receipt of the application was given to, largest of three banks in Neenah, and the third and views and recommendations requested of, the largest in its primary service area which encom­ Comptroller of the Currency and the Commis­ passes the cities of Neenah, Menasha, and Apple­ sioner of Banks of the State of Wisconsin. The ton. This area has 1 1 banks, one of which ($27.4 Comptroller recommended approval of the appli­ million deposits) is located in Neenah and is a cation; the Commissioner of Banks advised that subsidiary of The Marine Corporation. Neenah he would not disapprove the application. Bank, together with a small bank ($3 million de­ Statutory considerations. Section 3(c) of the posits) affiliated through common stock Act provides that the Board shall not approve an ownership, holds 60 per cent of the total deposits acquisition that would result in a monopoly or of banks in Neenah and 16 per cent of the depos­ would be in furtherance of any combination or its in its primary service area. conspiracy to monopolize or to attempt to monop­ Upon formation, Applicant would control total olize the business of banking in any part of the deposits of $164 million, making it the fourth United States. Nor may the Board approve a pro­ largest banking organization in the State, with posed acquisition the effect of which, in any sec­ control of 2.1 per cent of the State’s total bank tion of the country, may be substantially to lessen deposits. Applicant and the three larger banking competition, or to tend to create a monopoly, or organizations, all bank holding companies, would which in any other manner would be in restraint control 31.6 per cent of the deposits in the State, of trade, unless the Board finds that the anticom­ an increase of 2.1 per cent in the total now held petitive effects of the proposed transaction are by the three largest organizations. Consummation clearly outweighed in the public interest by the of the proposal would not significantly affect the probably effect of the transaction in meeting the present degree of State-wide concentration. The Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 383 present levels of concentration in the service areas kee-based banks now serving the area. Manitowoc of the three proposed subsidiary banks would not Bank competes with two banks, approximately be affected by Applicant’s formation. one-half and one-fourth its size, respectively, lo­ The three banks involved in this proposal are cated in its service area, and with two banks lo­ located in different counties and operate in three cated outside of that area. To some extent it also geographically distinct markets—Green Bay, competes with the aforementioned three Milwau­ Manitowoc, and Neenah. None of their offices are kee-based banks for larger local commercial closer than 35 miles to one another. The banks accounts. Neenah Bank competes with 11 banks are, respectively, 115 miles north (Kellogg Bank), located within its service area, with a $58 million 85 miles north (Manitowoc Bank), and 95 miles bank holding company subsidiary in Oshkosh, 12 north-northeast (Neenah Bank) of Milwaukee. miles south, and with the above-mentioned three Kellogg Bank operates one branch office; the other Milwaukee banks. The Board concludes that the two banks operate only a head office, The serv­ proposed affiliation of the three banks under Ap­ ice areas of the three banks do not overlap, and plicant’s ownership would not give any of them the data presented with respect to the business a significant competitive advantage over the smaller each institution obtains from the areas served by banks with which each now competes, and, as the others indicate that the competition between earlier stated, may reasonably be expected to enable and among the three banks is presently insignifi­ these banks to compete more effectively with the cant. Considering the distances separating these larger banks located both within and outside their banks, the fact that Wisconsin law precludes the service areas. establishment of a branch by any one of the On the basis of the foregoing, the Board con­ banks in the immediate service area of the others, cludes that consummation of Applicant’s proposal and the presence of a substantial number of com­ will not result in a monopoly, nor be in further­ peting banks in the areas separating the three ance of any combination, conspiracy, or attempt banks, it appears unlikely that significant competi­ to monopolize the business of banking in any rele­ tion would develop between or among the three vant area, and will not substantially lessen institutions should this application be denied. competition, tend to create a monopoly, or re­ While the fact that Brown County, in which Kel­ strain trade in any section of the country. logg Bank is located, adjoins Manitowoc County Financial and managerial resources and future (the situs of Manitowoc Bank) suggests a poten­ prospects. Applicant, a newly formed corporation, tial for competition between the Kellogg Bank has no operating history. Its future prospects are and the Manitowoc Bank, the aforementioned dis­ directly related to those of its proposed subsidiary tance separating the banks, the presence of several banks. In view of th sound financial condition of intervening banks, and the somewhat limited the banks, and on the basis of pro forma financial scope and relatively conservative nature of opera­ data submitted on behalf of Applicant, its pro­ tions of the Manitowoc Bank, make unlikely any posed financial structure appears satisfactory and significant future competition between the Kellogg its future prospects favorable. Similarly, the fu­ Bank and Manitowoc Bank. ture prospects of the three banks involved are In addition to the five nonaffiliated banks lo­ favorable, operating either under their present cated within Kellogg Bank’s service area, there are form of ownership or as subsidiaries of Applicant. located outside of, but reportedly competing with­ Applicant’s management, which will be principally in that area, two smaller banks and the three composed of certain of the directors and execu­ largest Milwaukee banks, each of which is a lead tives of the three proposed subsidiary banks, is bank in one of the three largest holding compa­ viewed as sound. Management of the banks is ex­ nies in the State. It appears that the banks com­ perienced and is viewed as satisfactory. However, peting with the Kellogg Bank are well established there is convincing evidence that the service rendi­ and that Applicant’s operation of the Kellogg tion of the Manitowoc Bank, particularly its Bank would have no significantly adverse effect lending practices, is lacking in competitive aggres­ on their competitive abilities. On the other hand, siveness and vigor. It is reasonably concluded that consummation of this proposal may enable the a more aggressive community service policy will Kellogg Bank to compete more effectively for be exhibited by the bank under Applicant’s con­ large commercial accounts with the large Milwau­ trol. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN □ APRIL 1969 Considerations relating to the banking factors velop as a more viable competitor, particularly are consistent with approval of Applicant’s pro­ with respect to the four bank subsidiaries of the posal, and as they relate to the apparent need for, two Appleton-based bank holding companies. and likely achievement of, somewhat more Considerations relating to the convenience and vigorous management policies in the Manitowoc needs of the communities involved are consistent Bank lend some weight to approval. with and lend some weight toward approval of the Convenience and needs of the communities in­ application. volved. Green Bay with a population of 63,000, is Summary and conclusion. On the basis of all an industrially diversified port city in an agricul­ relevant facts contained in the record, and in light tural-dairy area. Its role as a wholesale manufac­ of the factors set forth in section 3(c) of the Act, turing and distribution point continues to increase it is the Board’s judgment that the proposed trans­ in importance. Manitowoc, also a port city on action would be in the public interest and that the Lake Michigan, with a population of 32,000, is a application should be approved. nationally recognized manufacturing and distribu­ tion center. It is also a focal point for farming ac­ FIRST WISCONSIN BANKSHARES tivity in the area, principally dairying. Neenah, CORPORATION, with a population of 18,000, and its twin city, MILWAUKEE, WISCONSIN Menasha, with a population of 15,000, are located across from one another on the Fox River in the In the matter of the application of First Wis­ area of Lake Winnebago. Neenah is also a manu­ consin Bankshares Corporation, Milwaukee, facturing center, principally of paper and paper Wisconsin, for approval of acquisition of 80 per products. Other local industries produce metal, cent or more of the voting shares of The First concrete, and textile products. Surrounding lands National Bank of Rice Lake, Rice Lake, Wiscon­ are devoted primarily to dairy farming. sin. Each of the three banks’ service areas is experi­ encing rapid commercial and industrial develop­ Order Approving Application Under ment, although the Manitowoc area appears to be Bank Holding Company Act growing at a lesser rate than the other two. The record reflects that the major banking require­ There has come before the Board of Gover­ ments of the three communities are presently nors, pursuant to section 3(a)(3) of the Bank being met by the combined efforts of the banks Holding Company Act of 1956 (12 U.S.C. serving the areas and the large Milwaukee- and 1842(a)(3)), and section 222.3(a) of Federal Appleton-based banks. Therefore, Applicant’s pro­ Reserve Regulation Y (12 CFR 222.3(a)), an posal to provide increased and improved banking application by First Wisconsin Bankshares Corpo­ services through each of the proposed subsidiary ration, Milwaukee, Wisconsin, a registered bank banks, if realized, would result not in the provi­ holding company, for the Board’s prior approval sion of new and previously unavailable services, of the acquisition of 80 per cent or more of the but rather, in more convenient and perhaps more voting shares of The First National Bank of Rice immediate service to the areas involved. With re­ Lake, Rice Lake, Wisconsin. spect to the Manitowoc Bank, it appears that As required by section 3(b) of the Act, the under Applicant’s control that bank can be ex­ Board notified the Comptroller of the Currency of pected to serve better and more effectively, than the application and requested his views and rec­ has previously been the case, the credit demands ommendation. The Comptroller recommended ap­ arising in its area. Applicant’s contribution to a proval of the application. generally improved service rendition in each of Notice of receipt of the application was pub­ the banks involved will provide a more meaning­ lished in the Federal Register on November 2, ful full-banking service alternative to the residents 1968 (33 Federal Register 16130), providing an and businesses affected, and, at the same time, opportunity for interested persons to submit com­ will likely assure increased competition for certain ments and views with respect to the proposed types of business to the larger Milwaukee-based transaction. A copy of the application was for­ bank holding company subsidiaries now serving warded to the United States Department of Jus­ the areas. In addition, the Neenah Bank could de­ tice for its consideration. Time for filing Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 385 comments and views has expired and all those re­ clearly outweighed in the public interest by the ceived have been considered by the Board, probable effect of the transaction in meeting the It is hereby ordered, for the reasons set forth convenience and needs of the community to be in the Board’s Statement of this date, that said ap­ served. In each case, the Board is required to take plication be and hereby is approved, provided that into consideration the financial and managerial re­ the application so approved shall not be consum­ sources and future prospects of the bank holding mated (a) before the thirtieth calendar day company and the banks concerned, and the con­ following the date of this Order or (b) later than venience and needs of the community to be three months after the date of this Order, unless served. such period is extended for good cause by the Competitive effect of proposed transaction. Ap­ Board or by the Federal Reserve Bank of Chicago plicant, which controls 12 banks with total pursuant to delegated authority. deposits of $1.3 billion,1 is the largest banking or­ Dated at Washington, D.C., this 9th day of ganization in the State of Wisconsin, and accounts April, 1969. for 16,5 per cent of the total deposits held by all By order of the Board of Governors. banks in the State. The 11 largest banking organi­ zations in the State, which include 8 bank holding Voting for this action: Chairman Martin and Gov­ ernors Robertson, Mitchell, Maisel, Brimmer, and companies, control aggregate deposits of about $3 Sherrill. Absent and not voting: Governor Daane. billion, an amount equal to 38.5 per cent of the (Signed) Robert P. Forrestal, deposits held by all banks in the State. Consum­ mation of the present proposal would increase the Assistant Secretary. share of such deposits held by Applicant and by [seal] large banking organizations to 38.7 per cent. Statement First National, the only office of which is in Rice Lake, (Barron County), in the northwestern First Wisconsin Bankshares Corporation, Mil­ part of Wisconsin, has total deposits of $12.7 mil­ waukee, Wisconsin (“Applicant”), a registered lion. It is the larger of 2 banks in Rice Lake, and bank holding company, has applied to the Board the largest of 11 banks in Barron County. Its larg­ of Governors, pursuant to section 3(a)(3) of the est competitors are the other bank in Rice Lake, Bank Holding Company Act of 1956 (12 U.S.C. which holds deposits of about $7 million, and two 1842(a)(3)), for prior approval of the acquisi­ banks located 13 miles southwest of Rice Lake in tion of 80 per cent or more of the voting shares the City of Barron, which have deposits of $6.5 of The First National Bank of Rice Lake, Rice million and $5.5 million, respectively. None of the Lake, Wisconsin (“First National”). banks in Barron County is a subsidiary of a bank Views and recommendation of supervisory au­ holding company. thority. As required by section 3(b) of the Act, Of Applicant’s present subsidiary banks, 7 (ac­ the Board notified the Comptroller of the Cur­ counting for over 95 per cent of the aggregate rency of receipt of the application and requested his deposits of Applicant’s subsidiaries) are located in views and recommendation thereon. The Comp­ the Milwaukee area, and all but 1 are located in troller recommended approval of the application. the southeastern part of Wisconsin, and are over Statutory considerations. Section 3(c) of the 200 miles from Rice Lake. One subsidiary, First Act provides that the Board shall not approve an Wisconsin National Bank of Eau Claire, is located acquisition that would result in a monopoly or in the northwestern part of the State, about 60 would be in furtherance of any combination or miles from First National. One county intervenes conspiracy to monopolize or to attempt to monop­ Rice Lake and Eau Claire, and two banks larger olize the business of banking in any part of the than First National are located on the most direct United States. Nor may the Board approve a pro­ route between the two cities. It therefore does not posed acquisition the effect of which, in any sec­ appear that the present proposal would eliminate tion of the country, may be substantially to lessen any significant competition between First National competition, or to tend to create a monopoly, or which in any other manner would be in restraint i Unless otherwise noted, all bank data are as of June 29, of trade, unless the Board finds that the anticom­ 1968, adjusted to reflect all holding company formations petitive effects of the proposed transaction are and acquisitions approved by the Board to date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN □ APRIL 1969 and Applicant’s present subsidiary banks. Further, ture management needs, First National would be in view of the restrictive provisions of Wisconsin benefitted by Applicant’s ability to supply trained law with respect to branching, the development of personnel, and the bank would also benefit from such competition in the future does not appear the expansion and improvement of its services likely, and potential competition would therefore which Applicant indicates would be initiated. not be affected. Considerations under the banking factors pro­ Although First National is the largest bank vide some weight in favor of approval of the within the area which it serves, it does not appear application. that it has, or would have as a result of the pro­ Convenience and needs of the communities in­ posed affiliation, any decisive advantage over volved. Consummation of Applicant’s proposal competing banks. It does not appear that First would not affect the convenience or needs of cus­ National has been an aggressive competitor, and tomers served by its present subsidiary banks. any foreseeable change in its posture in this re­ Rice Lake (population 7,600) is the largest spect as a result of the present proposal is re­ community in Barron County. The economy of garded as a favorable consideration, and would not the county is basically agricultural, although some appear to threaten undue adverse effects on com­ small industries and several plants of major corpo­ peting banks. rations are located in Rice Lake. There is no Summarizing the competitive effect of Appli­ evidence of major unserved banking needs in the cant’s proposal, it does not appear that the addi­ area. It does appear, however, that some larger tional deposits which Applicant would control as borrowers in the area cannot be fully accommo­ a result of the proposed acquisition would signifi­ dated locally, because their needs exceed the legal cantly affect State-wide concentration; the acquisi­ lending limits of area banks, and there are also in­ tion would represent an expansion by Applicant dications that First National has not been aggres­ into a new market, would not eliminate existing sive in searching out and meeting the banking or potential competition, and could increase the needs of the area. level of competition in the Barron County area A large volume of business is done in the area without adversely affecting the viability or com­ by non-bank lenders, while First National has petitive effectiveness of other banks in the area. maintained a loans-to-deposits ratio of about 40 For the foregoing reasons, the Board concludes per cent, which is significantly below that of other that consummation of the proposed acquisition Wisconsin banks. Applicant asserts that lending would not result in a monopoly or be in further­ by First National could be expanded by at least ance of any combination, conspiracy, or attempt $1 million, to the benefit of both the bank and the to monopolize the business of banking in any community. In addition, it is comtemplated that area, and would not restrain trade, substantially more sophisticated credit analysis techniques and lessen competition, or tend to create a monopoly charge-card services would be introduced, that in­ in any section of the country. ternational banking services would be made avail­ Financial and managerial resources and future able to customers of First National (some of prospects. The financial condition and manage­ whom are presently serving foreign markets), and ment of Applicant is satisfactory, as are those of that trust services would be made available its subsidiary banks, and the prospects of Appli­ through one of Applicant’s other subsidiaries. cant and its subsidiaries are regarded as favorable. Considerations relating to the convenience and The financial condition of First National is needs of the community served by First National satisfactory, and its prospects are generally favor­ provide some weight in favor of approval of the able. The top management of the bank is at or application. near the usual retirement age, however, and it Summary and conclusion. On the basis of all does not appear that capable replacements are available from its present staff. In part, this lack relevant facts contained in the record, and in the of depth appears to be a result of a low salary light of the factors set forth in section 3(c) of the level which the bank has maintained in the past, Act, it is the Board’s judgment that the proposed which is further reflected in an employees’ strike transaction would be in the public interest, and which was only recently settled. In meeting its fu­ that the application should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 387 HAMILTON NATIONAL ASSOCIATES, By order of the Board of Governors. INCORPORATED, Voting for this action: Chairman Martin and Gov­ CHATTANOOGA, TENNESSEE ernors Robertson, Daane, Maisel, Brimmer, and Sher­ rill. Absent and not voting: Governor Mitchell. In the matter of the application of Hamilton National Associates, Incorporated, Chattanooga, (Signed) Robert P. Forrestal, Tennessee, for approval of acquisition of not less Assistant Secretary. than 80 per cent of the voting shares of The [seal] Hamilton National Bank of Chattanooga, Chatta­ Statement nooga, Tennessee. Hamilton National Associates, Incorporated, Order Approving Application Under Chattanooga, Tennessee (“Applicant”), a regis­ Bank Holding Company Act tered bank holding company, has applied to the There has come before the Board of Board of Governors, pursuant to section 3(a)(3) Governors, pursuant to section 3(a)(3) of the of the Bank Holding Company Act of 1956 (12 Bank Holding Company Act of 1956 (12 U.S.C. U.S.C. 1842(a)(3)), for prior approval of the 1842(a)(3)), and section 222.3(a) of Federal acquisition of not less than 80 per cent of the vot­ Reserve Regulation Y (12 CFR 222.3(a)), an ing shares of The Hamilton National Bank of application by Hamilton National Associates, In­ Chattanooga, Chattanooga, Tennessee (“Hamilton corporated, Chattanooga, Tennessee, a registered Bank”). bank holding company, for the Board’s prior ap­ Views and recommendation of supervisory au­ proval of the acquisition of not less than 80 per thority. As required by section 3(b) of the Act, cent of the voting shares of The Hamilton Na­ the Board notified the Comptroller of the Cur­ tional Bank of Chattanooga, Chattanooga, Ten­ rency of receipt of the application and requested his nessee. views and recommendation thereon. The Comp­ As required by section 3(b) of the Act, the troller recommended approval of the application. Board notified the Comptroller of the Currency of Statutory considerations. Section 3(c) of the the application and requested his views and rec­ Act provides that the Board shall not approve an ommendation. The Comptroller recommended ap­ acquisition that would result in a monopoly or proval of the application. would be in furtherance of any combination or Notice of receipt of the application was pub­ conspiracy to monopolize the business of banking lished in the Federal Register on February 13, in any part of the United States. Nor may the 1969 (34 Federal Register 2161), providing an Board approve a proposed acquisition the effect of opportunity for interested persons to submit com­ which, in any section of the country, may be sub­ ments and views with respect to the proposed stantially to lessen competition, or to tend to transaction. A copy of the application was for­ create a monopoly, or which in any other manner warded to the United States Department of Jus­ would be in restraint of trade, unless the Board tice for its consideration. Time for filing finds that the anticompetitive effects of the pro­ comments and views has expired and all those re­ posed transaction are clearly outweighed in the ceived have been considered by the Board. public interest by the probable effect of the trans­ It is hereby ordered, for the reasons set forth action in meeting the convenience and needs of in the Board’s Statement of this date, that said ap­ the community to be served. In each case the plication be and hereby is approved, provided that Board is required to take into consideration the the application so approved shall not be consum­ financial and managerial resources and future mated (a) before the thirtieth calendar day fol­ prospects of the bank holding company and the lowing the date of this Order or (b) later than banks concerned, and the convenience and needs three months after the date of this Order unless of the community to be served. such period is extended for good cause by the Competitive effect of the proposed transaction. Board or by the Federal Reserve Bank of Atlanta A close relationship between Applicant and Ham­ pursuant to delegated authority. ilton Bank, based upon common stock ownership, Date dated Washington, D.C., this 9th day of has existed since Applicant’s organization in 1930. April, 1969. Applicant directly owns 22.3 per cent of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN □ APRIL 1969 Hamilton Bank, and over 67 per cent of the stock banks and Hamilton Bank are satisfactory. Appli­ of Applicant and about 47 per cent of the stock cant and Hamilton Bank already have common of Hamilton Bank is owned by common share­ management to a large extent, and no change in holders. that respect is anticipated as a result of the pro­ Applicant, by virtue of its effective control of posed acquisition. The principal change in the Hamilton Bank, together with its nine subsidiary operations of Applicant would be that, with Ham­ banks, is the fifth largest banking organization in ilton Bank as a subsidiary, a broader market Tennessee. It controls approximately $380.5 mil­ could be established for Applicant’s stock. lion in total deposits,1 representing 5.9 per cent of Considerations under this factor are consistent deposits in the State. Hamilton Bank and seven of with approval of the application, and lend some Applicant’s nine subsidiary banks are located in weight in favor of approval in that Applicant eastern Tennessee; the other two subsidiary banks would gain somewhat greater access to capital are in northwest Georgia. markets. Hamilton Bank is located in Hamilton County, Convenience and needs of the communities in­ which comprises its primary service area. It has volved. There is no evidence of unserved needs, 16 offices with approximately $224 million in de­ nor does Applicant suggest that the proposed af­ posits. Only two other banks are located in filiation will fulfill any unserved needs of the Hamilton County, one with 12 offices and ap­ communities of Hamilton County or the commun­ proximately $178 million in deposits, and the other ities served by Applicant’s subsidiary banks. Ham­ with eight offices and $62 million deposits. All ilton Bank presently serves as correspondent, loan three are full service banks and are competitive in participant, and management consultant to subsid­ all respects. iaries of Applicant, and, while the present Applicant’s nearest subsidiaries to Hamilton proposal may to some extent facilitate such co­ Bank are located in Dalton, Georgia, and South operative efforts and permit some internal econo­ Pittsburg, Tennessee. Each of these banks is ap­ mies, no significant changes are anticipated in the proximately 28 miles from the nearest office of services of either Hamilton Bank or the present Hamilton Bank, and none of the present subsidi­ subsidiaries. aries is located in Hamilton County. Competition Considerations under this factor are consistent between Applicant’s subsidiaries and Hamilton with approval of the application. Bank is negligible, and, in view of the Tennessee Summary and conclusion. On the basis of all law which prohibits branching across county lines, relevant facts contained in the record, and in the the distance separating Hamilton Bank and the light of the factors set forth in section 3(c) of the subsidiaries of Applicant, and the number of Act, it is the Board’s judgment that the proposed banks located in the intervening areas, it appears transaction would be in the public interest and that this would be true even in the absence of the that the application should be approved. present relationship between Applicant and Ham­ ilton Bank. ORDER UNDER SECTION 4 OF In the light of these facts, the Board concludes BANK HOLDING COMPANY ACT that consummation of the proposed acquisition In the matter of the application, pursuant to would not result in a monopoly nor be in further­ section 4(c)(8) of the Bank Holding Company ance of any combination, conspiracy, or attempt Act of 1956, by Otto Bremer Company, and Otto to monopolize the business of banking in any Bremer Foundation, both of St. Paul, Minnesota, area. It does not appear that consummation of the for determinations re the proposed nonbank sub­ proposal would have the effect of substantially sidiaries, State Agency of Redwood Falls, Inc., lessening competition or tending to create a mo­ American State Agency of Watertown, Inc., Casnopoly in any section of the country, or would in sabanka Insurance Agency, Inc., Elk Valley any manner be in restraint of trade. Agency, Inc., and Citizens Insurance Agency, Inc. Financial and managerial resources and future prospects. The financial condition, management, Order Granting Determinations and prospects of Applicant, its present subsidiary Under Bank Holding Company Act Otto Bremer Company and Otto Bremer Foun­ i All banking data are as of June 29, 1968, unless other­ wise noted. dation, both of St. Paul, Minnesota, both of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 389 which are bank holding companies within the Statement meaning of section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. § 1841(a)), Otto Bremer Foundation and Otto Bremer have filed requests for determinations by the Company, both of St. Paul, Minnesota (some­ Board of Governors of the Federal Reserve Sys­ times hereinafter referred to as “Applicants”), are tem that the activities planned to be undertaken bank holding companies within the meaning of by five proposed nonbank subsidiaries (State section 2(a) of the Bank Holding Company Act Agency of Redwood Falls, Inc., American State of 1956 (12 U.S.C. § 1841(a)) (the “Act”). Agency of Watertown, Inc., Cassabanka Insur­ They have requested the Board to determine that ance Agency, Inc., Elk Valley Agency, Inc., and the activities planned to be undertaken by five Citizens Insurance Agency, Inc.) are of the kind proposed subsidiaries (State Agency of Redwood described in section 4(c)(8) of the Act (12 Falls, Inc., American State Agency of Watertown, U.S.C. § 1843(c)(8) and section 222.4(a) of Inc., Cassabanka Insurance Agency, Inc., Elk Val­ the Board’s Regulation Y (12 CFR § 222.4(a)) ley Agency, Inc., and Citizens Insurance Agency, so as to make it unnecessary for the prohibitions Inc.) are of the kind described in section 4(c)(8) of section 4(a) of the Act respecting ownership of the Act (12 U.S.C. § 1843(c)(8)) and section of shares in nonbanking companies, to apply in 222.4(a) of the Board’s Regulation Y (12 CFR order to carry out the purposes of the Act. § 222.4(a)), so as to make it unnecessary for the Pursuant to the requirements of section prohibitions of section 4(a)(1) of the Act to ap­ 4(c)(8) of the Act, and in accordance with the ply in order to carry out the purposes of the Act. provisions of sections 222.4(a) and 222.5(a) of On July 25, 1968, the Board ordered that a hear­ the Board’s Regulation Y (12 CFR §§ 222.4(a) ing be held on these requests, pursuant to section and 222.5(a)), a hearing was held on these mat­ (4(c)(8) of the Act and sections 222.4(a) and ters on August 28, 1968. The hearing examiner 222.5(a) of the Board’s Regulation Y (12 CFR filed his report and recommended decision wherein S§ 222.4(a) and 222.5(a)), notice of which was he recommended that the Board decline to published in the Federal Register on August 2, make the requested determinations; Applicants 1968 (33 F.R. 11038). filed exceptions and a brief in support thereof. The hearing was held in Minneapolis, Minne­ For the reasons set forth in a Statement of this sota, on August 28, 1968, before a duly selected date, and on the basis of the entire record, and designated hearing examiner. Applicants and It is hereby ordered, that the activities the Board, the latter appearing in a nonadversary planned to be undertaken by each of the proposed capacity, were represented at the hearing by coun­ subsidiaries named herinabove are determined to sel and were afforded the opportunity to be heard, be so closely related to the business of banking or to examine and cross-examine witnesses, and to of managing or controlling banks as to be a proper file briefs and proposed findings of fact and con­ incident thereto and as to make it unnecessary clusions of law. for the prohibitions of section 4(a) of the Bank The examiner’s report and recommended deci­ Holding Company Act of 1956 to apply in order sion, a copy of which is attached, was filed with to carry out the purposes of that Act; provided, the Board on December 31, 1968. The examiner however, that the determination with respect to recommended that all five requests be denied. each such subsidiary is subject to revocation if Applicants filed exceptions, together with a sup­ the facts upon which it is based change in any porting brief, to the examiner’s report and recom­ material respect. mended decision. Dated at Washington, D.C., this 25th day of Facts. The purpose of each of the five March, 1969. proposed subsidiaries is to place in a separate cor­ By order of the General Counsel of the Board poration the general insurance agency business of Governors, acting on behalf of the Board pur­ now conducted by each of five of Applicants’ sub­ suant to delegated authority (12 CFR § 265.2(b) sidiary banks on its respective premises, through (2)). ' its officers or employees acting as agents, and thus (Signed) Robert P. Forrestal, to protect the five banks from liabilities arising Assistant Secretary. out of their insurance operations. It is planned [seal] that the stock of the proposed insurance subsidi- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN □ APRIL 1969 aries will be offered for sale to the respective Bank is related to its lending activities, and is oth­ stockholders of the related banks in the same pro­ erwise derived from customers of banking serv­ portion as they hold stock in the banks1, and that ices, is reflected in the following table with respect the officers and directors of each subsidiary will to operations from January 1 through July 16, also be officers and directors of the related bank. 1968: The insurance now offered by the banks (with mi­ Percentage of nor variations from bank to bank) include some Classification gross premiums or all of the following types: credit life, health Insurance on loan collateral 63 and accident, fire, hail and windstorm, marine, Other insurance for customers 32 automobile, fidelity, and workmens’ compensation. Insurance for others 5 Each of the banks has maintained a general insur­ Elk Valley Agency, Inc. (a North Dakota cor­ ance agency operation for at least 30 years. poration) would engage exclusively in the busi­ State Agency of Redwood Falls, Inc. (a ness of a general insurance agency on the prem­ Minnesota corporation) would engage exclusively ises of Elk Valley State Bank, Larimore, North in the business of a general insurance agency on Dakota (“Elk Valley Bank”). The extent to which the premises of State Bank of Redwood Falls, the insurance agency business of Elk Valley Bank Minnesota (“Redwood Bank”). The extent to is related to its lending activities, and is otherwise which the insurance agency business of Redwood derived from customers of banking services, is re­ Bank is related to its lending activities, or is oth­ flected in the following table with respect to oper­ erwise derived from customers of banking serv­ ations in 1967: ices, is reflected in the following table with respect Percentage of to operations in 1967: Classification gross premiums Percentage of Insurance on loan collateral 19 Classification gross premiums Other insurance for customers 81 Insurance on loan collateral 44 Insurance for others 0 Other insurance for customers 36 Insurance for others 20 Citizens Insurance Agency, Inc. (a North Da­ kota corporation) would engage exclusively in the American State Agency of Watertown, Inc. (a business of a general insurance agency on the Minnesota corporation) would engage exclusively premises of Citizens State Bank, Rugby, North in the business of a general insurance agency on Dakota (“Citizens Bank”). The extent to which the premises of American State Bank of Water­ the insurance agency business of Citizens Bank is town, Minnesota (“Watertown Bank”). The related to its lending activities, and is otherwise extent to which the insurance agency business of derived from customers of banking services, is re­ Watertown Bank is related to its lending activities, flected in the following table with respect to oper­ and is otherwise derived from customers of bank­ ations for the twelve month-period ending July ing service, is reflected in the following table 31, 1968: ’ ’ with respect to operations in 1967: Percentage of Percentage of Classification gross premiums Classification gross premiums Insurance on loan collateral 14 Insurance on loan collateral 10 Other insurance for customers 82 Other insurance for customers 70 Insurance for others 4 Insurance for others 20 The record shows that it is common practice Cassabanka Insurance Agency, Inc, (a North for State banks in Minnesota and North Dakota Dakota corporation) would engage exclusively in to conduct general insurance agency operations. the business of a general insurance agency on the The law in these States prohibits lenders from re­ premises of Casselton State Bank, Casselton, quiring that insurance be procured from a North Dakota (“Casselton Bank”). The extent to particular source. Each of Applicants’ proposed which the insurance agency business of Casselton subsidiaries would carry on a general insurance agency business in all substantial respects as is i Applicants would own a majority of the stock of each of the proposed subsidiaries. now conducted by the bank with which the sub- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 391 sidiary would be associated. The subsidiaries directly related to loan transactions of the banks would have no separate quarters or employees, are not insignificant within the purview of prior but each would pay a fee for the use of space on Board determinations. See, e.g., Otto Bremer Co., bank premises and for the services of bank per­ 1967 Federal Reserve Bulletin 1555, 1557. sonnel. Other factors regarded by the Board as pertinent Discussion. Section 4(a)(1) of the Act forbids in showing the requisite statutory relationship, no a bank holding company to “. . . acquire direct or one of which is decisive, include: the fact of the indirect ownership or control of any voting shares organizational and physical integration of the in­ of any company which is not a bank. . . .” By vir­ surance agency and bank operations; the fact that tue of section 4(c)(8) of the Act and of section a significant portion of the premiums not derived 222.4(a) of the Board’s Regulation Y, this prohi­ from bank-related transactions is nevertheless de­ bition does not apply to shares of any company rived from insurance written for bank customers; whose activities, “all of which are or are to be a and the fact that similar general insurance agen­ financial, fiduciary, or insurance nature, are so cies are operated in conjunction with many banks closely related to the business of banking or of in the relevant area. With respect to the latter, the managing or controlling banks (as conducted by Board has held that the existence of “area prac­ such bank holding company or its banking subsid­ tice” tends to negate the presence of “potential iaries) as to be a proper incident thereto and as to evils” that may arise from, or be accentuated by, make it unecessary for the prohibitions of section the operation of bank holding companies, these 4 of the Act to apply in order to carry out the being the dangers that the general prohibition of purpose of the Act.” section 4(a) of the Act against the ownership of The hearing examiner, in recommending that nonbank stock was designed to protect against. the Board issue an order declining to make the re­ See, e.g., First Bank Stock Corporation, op. cit., quested determinations, concluded that, while all supra, at 930-32. The first two considerations in­ of the activities of the proposed corporations dicate that the insurance agency activities are an would be of an insurance nature, not all such ac­ adjunct to bank operations and are not an end in tivities would be so closely related to the business themselves,, so that it is improbable that the insur­ of banking as to be a proper incident thereto ance activities will ever be regarded as paramount within the meaning of section 4(c)(8). In the by the holding company and its banks abused be­ view of the hearing examiner, to meet the “closely cause of such activities. related” and “proper incident” requirements, all All of the relevant considerations with respect of the insurance activities must be related to bank to Applicants’ five proposed general insurance transactions. agency subsidiaries are consistent with approval. The Board had heretofore held, however, that it Conclusions. It appears that the activities of is not necessary for these purposes that even a Applicants’ five proposed subsidiaries would be of majority of an insurance agency company’s activi­ an insurance nature and so closely related to the ties be directly connected with bank transactions. business of banking as conducted by Applicants’ See, e.g., Bank Shares Incorporated, 1959 Federal subsidiary banks as to be a proper incident there­ Reserve Bulletin 954, 957. to and as to make it unnecessary for the prohibi­ The Board heretofore has concluded that, to tions of section 4(a) to apply in order to carry justify an exemption under section 4(c)(8), it is out the purposes of the Bank Holding Company necessary that there be a direct and significant Act. To the extent that they are consistent with connection between the contemplated activities of this Statement, the Applicants’ exceptions to the an insurance agency company and the business of report and recommended decision of the hearing banking, or of managing and controlling banks, as examiner are sustained. conducted by the applicant holding company or its Accordingly, it is concluded that the applica­ banking subsidiaries. See, e.g., First Bank Stock tions should be approved. As indicated in the at­ Corporation, 1959 Federal Reserve Bulletin 917, tached Order, if the facts upon which approval of 930 (application re First Service Agencies, Inc.). any one of the applications is based should The premiums derived fron the insurance activi­ change in any material respect, such approval ties of Applicants’ banks here involved that are may be revoked. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN □ APRIL 1969 Hearing Examiner’s Report and Findings of Fact Recommended Decision Based upon the record made at the hearing conducted in this matter, findings of fact are here­ The hearing in this matter was held at the Fed­ by made herein as set forth below. eral Reserve Bank of Minneapolis, Minneapolis, BHC-83 (State Agency of Redwood Falls, Inc.) Minnesota, on August 28, 1968, before this Pre­ siding Officer, a Federal Trial Examiner on detail 1. State Bank of Redwood Falls (Redwood to the Board of Governors of the Federal Reserve Bank) has operated an insurance agency since System (Board). 1937. (H. R. 97) Roland D. Graham, Esq., General Counsel of 2. The Vice President of Redwood Bank is the the Federal Reserve Bank of Minneapolis, repre­ bank’s “basic insurance agent” and he conducts sented the Board. William S. Fallon, Esq., a the insurance business from his bank desk. Three member of the Minnesota Bar, represents Otto other bank employees are also licensed and write Bremer Company and Otto Bremer Foundation, insurance. (H. R. 98) A separate department is not American National Bank Building, St. Paul, Min­ maintained. (H. R. 99) The insurance agency does nesota (Petitioners). business under the trade name “State Agency”. Petitioners are registered bank holding compa­ (H. R. 99-100) nies. (H.R. 22) 3. Petitioners own 896% of Redwood Bank’s These proceedings are conducted pursuant to 1000 issued shares (H. R. 100) Section 4(c) (8) of the Bank Holding Company 4. During calendar 1967 Redwood Bank wrote Act of 1956 (70 Stat 133) and Section 222.4(a) many types of insurance. Slightly over one half of Board Regulation Y (12 CFR 222). thereof was written in connection with bank The Bank Holding Company Act (Act), under loans; slightly over one third came from non-bor­ Section 4(a), prohibits a bank holding company rowing customers; and, slightly less than one fifth from owning voting shares of any company which was for non-bank customers. (Pets. X 5) is not a bank, but Section 4(c) (8) thereof allows 5. The Redwood Bank plans to incorporate its an exemption with respect to shares of any com­ insurance operation as “State Agency of Redwood pany “all the activities of which . . . are to be of a . . . insurance nature and which the Board ... on Falls, Inc.” (Redwood Corporation). (H. R. 104 the basis of the (hearing) record . . . has and 120 and Pets. X 5) determined to be so closely related to the business 6. Redwood Bank will offer Redwood Corpora­ of banking (as conducted by banking subsidiaries tion stock to Redwood Bank stockholders based of Petitioners; 222.4(a) Reg Y) ... as to be a on bank ownership. (Pets. X 5) proper incident thereto and as to make it unneces­ 7. Except for one person, the officers and direc­ sary for the prohibitions of this section to apply tors of Redwood Bank will be the officers and in order to carry out the purposes of this Act.” directors of Redwood Corporation. (H. R. 110) By letter dated April 24, 1968 (Petition) Peti­ 8. The president of the Redwood Bank states tioners request Board determinations that the ac­ that after incorporation said bank insurance oper­ tivities of specified proposed corporations (to be ation will continue to be run by Redwood Corpo­ “affiliated” with subsidiary banks of Petitioners ration as now conducted—except for the change H. R. 23) are to be of a kind and nature described in name—the identification. (H. R. 113) The in 4(c) (8) of the Act and exempt from said ac­ agents will be employees of Redwood Corpora­ quisition prohibition of the Act. The Petition tion; and $100 per month to Redwood Bank will (Joint XI) states that said banks now operate compensate for use of bank employees, equipment unincorporated insurance agencies as departments and space. (H. R. 114) of said banks and the reason for incorporating such insurance activities of said banks is to insu­ 9. The proposed Articles of Incorporation of late the banks from any liability arising out of the Redwood Corporation state that said corporation operation of said activities by reason of their asso­ will conduct an insurance agency, the officers, ciation with the bank. agents and employees of which “shall solicit and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 393 procure applications for and shall sell insurance 8. After incorporation, the said existing insur­ and policies of insurance”. (Pets. X 5) ance operations conducted by the Affiliated Banks 10. The proposed By-Laws of Redwood Corpo­ will continue to be run by the Remaining Pro­ ration state that its business shall be managed by posed Corporations, as now conducted. The its Directors, who will elect its officers. agents will be employees of the Remaining Pro­ posed Corporations and the Affiliated Banks will BHC-84 (American State Agency of Watertown, receive some compensation for use of bank em­ Inc.) ployees, equipment and space. BHC-85 (Cassabanka Insurance Agency, Inc.) 9. The proposed Articles of Incorporation of BHC-86 (Elk Valley Agency, Inc.) the Remaining Proposed Corporations contain no BHC-87 (Citizens Insurance Agency, Inc.) restrictions and will empower such corporations to The proposed corporations listed immediately conduct general insurance agencies. above in the heading for this sub-division, will be 10. The proposed By-Laws of the Remaining referred to hereafter as the “Remaining Proposed Proposed Corporations contemplate activities Corporations”. commensurate with corporate powers. The substance of the ten specific findings listed above with respect to BHC-83 are hereby made Discussion likewise from the hearing record with respect to each of the remaining cases listed in this sub-divi­ The Redwood Bank and the Affiliated Banks sion, namely: will be referred to hereafter individually and 1. Each so-called affiliated bank, American collectively as “Subsidiary Bank(s)”. The Red­ State Bank of Watertown, Watertown, Minnesota wood Corporation and the Remaining Proposed (BHC-84), Casselton State Bank, Casselton, Corporations will be referred to hereafter individ­ North Dakota (BHC-85), Elk Valley State Bank, ually and collectively as “Proposed Corpora- Larimore, North Dakota (BHC-86), and The Cit­ tion(s)”. izen State Bank, Rugby, North Dakota (BHC-87) No determination or approval by the Board re­ (“Affiliated Banks(s)”) is and has been conducting garding the policy or need to incorporate the an unincorporated insurance agency. insurance activities of the Subsidiary Banks, is in­ 2. An officer and other employees of the Affili­ volved or required in these proceedings. The sole ated Banks are the licensed insurance agents, and issue in these proceedings for determination by the insurance activity is conducted on the prem­ the Board from the hearing record, is whether the ises of the Affiliated Banks by bank employees. Proposed Corporations meet the exemption quali­ 3. The Affiliated Banks are subsidiaries of Peti­ fications and conditions imposed by Congress in tioners. Section 4(c) (8) of the Act, namely: whether all 4. The Affiliated Banks write many types of activities of the Proposed Corporations are to be insurance, and, in addition to insurance written in of an insurance nature; and, whether all such ac­ connection with and related to loans and other tivities are to be so closely related to the business banking business transactions, they write insur­ of banking (conducted by the Subsidiary Banks) ance which is not related to the business of bank­ as to be a proper incident thereto and so closely ing and an incident thereto, such as various types so related as to eliminate the need for application of unrelated insurance for mere bank depositors, of the section 4 prohibitions against non-bank ac­ safe deposits box lessees and persons having no quisitions, retentions or activities. This deter­ other dealings with the Affiliated Banks. mines and resolves whether Petitioners may ac­ 5. The Affiliated Banks plan to incorporate quire stock of the Proposed Corporations, their insurance operations as the Remaining Pro­ Nothing else is involved. posed Corporations. The reference in the Act to the “business of 6. The Affiliated Banks will offer stock of the banking” is without qualification and without au­ Remaining Proposed Corporations to stockholders thority to anyone to limit or expand the normal of the Affiliated Banks based on bank ownership. and accepted meaning of such words. Extracurri­ 7. Substantially, the officers and directors of cular non-banking activities conducted by banks the Affiliated Banks will be the officers and direc­ (such as an insurance or any other kind of non­ tors of the Remaining Proposed Corporations. banking activity, regardless of whether related to Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN □ APRIL 1969 banking transactions) and the indulgence therein porations intend to conduct a general insurance and tolerance thereof by supervisory authorities, agency business, writing all types of insurance conducted for the convenience of bank customers for: borrowers from, depositors in and safe de­ and the community and for the benefit of its stock­ posit box lessees of, the Subsidiary Banks, as well holders, do not disturb the traditional meaning as for the general public. These insurance activi­ and common scope of the banking business, par­ ties have been and are now conducted by the Sub­ ticularly as employed clearly and absolutely in the sidiary Banks. During 1967, Elk Valley State Act. Congress did not impose a vain and super­ Bank did not write for the general public. fluous condition when it required the excepted The applicable provisions of the Act are clear non-banking activities to have close relationship and unambiguous. Board Regulations implement with the banking business. It was following the the Act. climate and purpose of the Act. See Senate Re­ Consistent with the preamble of the Act, Sec­ port No. 1095, 84th Cong., 1st Session 1955. And tion 4 thereof provides that no bank holding com­ clearly, Congress did not incorporate nor contem­ pany shall acquire shares of any company which plate the incorporation of any non-banking busi­ is not a bank, except shares of a company “all” ness (such as insurance) into or as a part of the activities of which are to be of an insurance na­ banking business. For the exception, the non­ ture and which activities the Board, on the basis banking business must be so closely related to the of the hearing record, has determined are to be banking business as to be a proper incident there­ “so closely related to the business of banking” as to. to be “a proper incident thereto” and so closely The function of a bank (the business of bank­ related to the business of banking as to make it ing) is to mobilize money resources and put them unnecessary for the section 4 prohibitions to ap­ to work by making credit available. The test is ply in order to carry out the purposes of the Act. whether the act done relates to or is an act in the Thus, shares of the Proposed Corporations may course of the substitution of credits (which is the be acquired by Petitioners provided and only if all essence of the banking function); and whatever is the insurance activities of the Proposed Corpora­ an appropriate and usual incident to this substitu­ tions will be so closely related to the business of tion or exchange of credits is of the very essence banking conducted by the Subsidiary Banks as to of the functions and activities of banking. There be a proper incident thereto. The basic identity of is a difference between an activity being incidental each type of business is preserved. The insurance to the business of banking and an activity which business does not become the banking business; is merely beneficial or helpful to the community but all the insurance business must be closely re­ and general customers, or profitable to the corpo­ lated and a proper incident to the business of ration. The Act requires the activities of the Pro­ banking. When a Subsidiary Bank, and if a Pro­ posed Corporations to be so closely related to the posed Corporation, sells insurance independent of business of banking as to be a “proper incident” and not related and an incident to a banking busi­ (an accompanying occurance which is adapted to ness transaction (regardless of who the insured and fitting for the banking act or acts involved) may be—borrower, depositor, lessee, other) it is thereto. See “What is The Banking Business”, The and will be conducting an independent insurance Business Lawyer, Vol. 21 (1965-66) 537. business which is not related and an incident to the The Act states clearly that to allow the request­ business of banking. The Act exempts the insur­ ed exemption, the Board must determine from the ance—not the banking business; provided the hearing record that all the activities of each of the insurance activity meets the above qualifications Proposed Corporations are to be: 1) of an insur­ and conditions of the Act. The Act does not con­ ance nature; and 2) so closely related to the busi­ vert the insurance business into the banking busi­ ness of banking as to be a proper incident thereto ness; nor do the insurance operations of the Sub­ and (so closely related to the business of bank­ sidiary Banks. The exemption prevails if the ing) as to eliminate the need to apply the section insurance activities are closely related to and a 4 prohibitions of the Act. In brief, said insurance proper incident to banking business. This is the activities must be accompaniments and comple­ exemption. ments to the banking business. The proposed findings and conclusions submit­ The facts are not in dispute. The Proposed Cor­ ted by Counsel for Petitioners and the brief and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 395 comments submitted by both Counsel are at vari­ will be of an insurance and not a banking nature) ance with this decision. These submissions have must be so closely related to the business of bank­ been considered and must be denied. Respondent ing (and, it is emphasized that such insurance urges the Board to allow bank holding companies activities are not and do not become, in nature, to acquire shares of corporations conducting a banking activities or business) conducted by the “bank-connected” general insurance agency, Subsidiary Banks as to be a proper incident there­ whose activities include those not related to the to. The Act preserves the separate identity of the business of banking. This would clearly violate the insurance business, which is never intended to and Act. Respondent beclouds and confuses the true does not become part of nor lose its identity in, issues with erroneous implications or assumptions the banking business; but may become a proper and unsupported conclusions, such as the erro­ incident to the banking business. Mere affiliation neous impression that the Board must approve the or connection of an insurance operation with a proposed incorporations, and the erroneous banking institution (through, for instance, com­ assumption and unsupported conclusion that by mon ownership, use of common personnel and mere bank-connection all the bank conducted in­ space) does not convert the nature of either insti­ surance activities are assimilated into and become tution nor provide the exemption. The Exemption the business of banking or, merely by such bank­ results from a relationship between the insurance connection, all such activities become a proper in­ activity and true banking transactions (business of cident to the business of banking. The clear banking) which is so close as to be a proper inci­ language and intent of the Act is binding. When dent to such banking business. Writing insurance language is clear and unambiguous it must be for persons who are bank borrowers, bank deposi­ held to mean what it plainly expresses. There is tors or deposit box lessees but which insurance is no safer nor better settled canon of interpretation. not related to such loan, deposit or lease transac­ See Sutherland Statutory Construction, 3rd Edi­ tions, and writing insurance for others doing no tion, Horack, Vol. 2, Section 4702. This decision business with the Subsidiary Banks, is neither the must be based upon the hearing record in these business of banking in itself nor an insurance ac­ proceedings and the requirements of the Act. tivity related to the business of banking. 4. The Act and Board Regulation Y require “all” the activities of the Proposed Corporations Conclusions (in order to qualify for the bank holding compa­ Based upon the foregoing, conclusions are here­ ny exemption) to be of an insurance nature by made herein as set forth below. (which they will be) and (all such activities) to 1. All the activities of the Proposed Corpora­ be so closely related to the true business of bank­ tions are to be of an insurance nature but such ing conducted by the Subsidiary Banks as to be a activities will include both those so closely related proper incident thereto (which they will not be). to the business of banking as to be a proper inci­ All the activities of the Proposed Corporations dent thereto, and also those not related to the will not be related to the business of banking con­ business of banking. ducted by the Subsidiary Banks, and hence the 2. The Articles of Incorporation and By-laws shares of the Proposed Corporations do not of the Proposed Corporations empower and au­ qualify for the exemption available under Section thorize the Proposed Corporations to operate in­ 4(c) (8) of the Act. dependent and unrestricted general insurance 5. To authorize Petitioners to acquire shares of agencies. the Proposed Corporations the activities of which 3. The words “business of banking” are em­ will be devoted to insurance and will include ployed in the Act and Board Regulation Y with those not related to the business of banking, their normal, customary and accepted meaning, would thereby authorize acquisition of shares of and, applied to this proceeding, mean transactions companies which are neither banks nor those conducted by the Subsidiary Banks involving the whose total insurance activities are related to the mobilization of money resources and putting mon­ business of banking, and would therefore violate ey to work by making credit available. In brief, the clear prohibitions of Section 4 of the Act. money and credit. The Act requires that all the Hence, the Petition must be denied and the prohi­ activities of the Proposed Corporations (which bitions of Section 4 of the Act preserved and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

applied in order to carry out the purposes of the 4(c) (8) of the Act. As shown above, they would Act. not. Hence, Petitioners cannot be authorized to 6. The recommended decision in this case (de­ acquire shares of the Proposed Corporations. nying exemption) does not disturb or deal with Recommendation the manner in which the Subsidiary Banks now or Based on the foregoing, it is recommended that hereafter conduct any of their activities. This is the Board issue forthwith an Order declining to not at issue. The sole issue in this proceeding is make the determinations requested in the Petition. whether, from the hearing record, the Proposed Corporations would meet the qualifications and (Signed) Leonard J. Ralston, conditions imposed by Congress under Section Presiding Officer. 396 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements CHANGES IN THE BOARD'S STAFF WEEKLY SUMMARY OF BANKING AND CREDIT MEASURES The Board of Governors has announced the ap­ A new press release, "Weekly Summary of Bank­ pointment of Jerold E. Slocum as Director of the ing and Credit Measures” (H. 9), has been Division of Data Processing, effective April 7, made available on a regular weekly basis. The first 1969, to assume the position vacated by Lawrence release was Thursday afternoon, April 17. The H. Byrne, Jr., who resigned April 4, 1969. measures shown include various interest rates and Mr. Slocum had been employed by the Space member banks’ borrowings and net reserve position; and Systems Division of Packard-Bell Electronics new weekly seasonally adjusted data for total, non­ of Los Angeles, California, as Director of Indus­ borrowed, and required reserves; and weekly sea­ trial Products. He joined Packard-Bell in 1959, sonally adjusted figures for bank deposits and the shortly after his graduation from the University of money supply, including newly released data for California. total member deposits and U.S. Government de­ posits. All interest rate and reserve figures are for APPOINTMENT OF DIRECTOR the latest statement week, whereas data for bank deposits and the money supply have a 1-week lag. Mr. Cullen J. Kelly, President of The First Na­ Requests for this release should be addressed to tional Bank, Midland, Texas, was appointed a Publications Services, Division of Administrative director of the El Paso Branch of the Federal Services, Board of Governors of the Federal Re­ Reserve Bank of Dallas on April 10, 1969, to fill serve System, Washington, D.C. 20551. the unexpired portion of a term ending December 31, 1970. As a director Mr. Cullen succeeds Robert ADMISSION OF STATE BANKS TO F. Lockhart. MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The following banks were admitted -to membership RESIGNATION OF DIRECTOR in the Federal Reserve System during the period March 16, 1969, through April 15, 1969: Robert C. Enders, who had served since January 1, 1967, as a Class A director of the Federal Reserve South Dakota Bank of Philadelphia, resigned effective February Onida..........................................Sully County Bank 28, 1969. Mr. Enders is President of Bloomsburg Bank-Columbia Trust Company, Bloomsburg, Penn­ Washington sylvania. Arlington....................................Bank of Arlington 397 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication April 16 Industrial production, nonfarm employment, and Output of textiles, however, declined again and retail sales rose further in March but the unem­ was down 5 per cent from the December peak. ployment rate edged up. Commercial bank credit declined and the money supply increased moder­ EMPLOYMENT ately further. Time and savings deposits were re­ Nonfarm payroll employment rose by 145,000 in duced nominally. Between mid-March and mid­ March but about 30,000 of the increase was due April, yields on U.S. Government notes and bonds to the return of workers on strike. In most non­ declined and yields on corporate and municipal manufacturing industries, employment gains con­ bonds advanced on balance. tinued strong, with the exception of construction where a large February rise was followed by a INDUSTRIAL PRODUCTION decline in March. In manufacturing, moderate Industrial production in March rose further to employment increases were reported in the capital 170.5 per cent of the 1957-59 average—up 0.6 goods industries. The largest gains were in trans­ per cent from February and 4.6 per cent from a portation equipment and petroleum products in­ year earlier. Output of final products and materials dustries but they reflected mainly return of strikers. increased. The average factory workweek, which dipped in February because of bad weather, recovered in Auto assemblies were at an annual rate of 8.4 March to 40.6 hours, unchanged from the January million units, the same as in February. Production of household goods and consumer staples rose but level. The unemployment rate was 3.4 per cent in output of furniture changed little. Production of March, up slightly from the 3.3 per cent rate main­ industrial and commercial equipment expanded tained since December 1968. The change was at­ further and output of farm tractors, which had tributable to a small advance in teenage unemploy­ been sharply reduced in December, also rose. Pro­ ment. duction of iron and steel and most other industrial materials, both durable and nondurable, increased. DISTRIBUTION The value of retail sales in March was up 1 per cent from February and was 6 per cent above a year earlier. Sales at both durable and nondurable goods stores increased. Unit sales of new domestic autos declined 6 per cent in March to an annual rate of 8.2 million units, but picked up in early April. AGRICULTURE Growers’ March 1 plans called for expansion of acreages of oilseeds and cotton, contraction of acreage in food grains, and no change in feed crops. Altogether these add up to a small net in­ crease in spring-seeded crops which may, given good weather, bring 1969 output close to last year’s record. Winter wheat acreage, although down 13 per cent, on April 1 was expected to produce a crop only 7 per cent below that of 1968. 398 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

In the first quarter of 1969, output of red meats February pace. U.S. Government deposits declined and poultry was a little above a year earlier and following a buildup over the two previous months. that of eggs and milk a little below. Time and savings deposits were reduced only nom­ inally in March following large outflows earlier COMMODITY PRICES in the year. Although attrition of large negotiable CD’s continued heavy, it was nearly offset by ac­ Average prices of industrial commodities rose an celerated inflows of consumer-type and savings estimated 0.4 per cent further from mid-February deposits. to mid-March as widespread advances were led Net borrowed reserves of member banks aver­ by softwood lumber and gasoline. Price increases aged about $650 million over the four weeks end­ for livestock and fresh and dried vegetables ac­ ing March 26 compared with $580 million in Feb­ counted for most of a substantial rise in farm prod­ ruary. Borrowings were unchanged but excess re­ ucts. Since mid-March, industrial prices have in­ serves dropped. Total and required reserves also creased further; increases have been announced for declined. lead, copper, aluminum and copper mill products, and some paper and chemical items. Trade reports SECURITY MARKETS have indicated a downturn in lumber and plywood Yields on U.S. Government notes and bonds fell on prices in recent weeks. balance between mid-March and mid-April. Rates on most Treasury bills rose over the same period, BANK CREDIT, DEPOSITS, AND RESERVES although the longest bill maturities declined. The Commercial bank credit declined $800 million in 3-month bill was bid at around 6.20 per cent in March following substantially reduced growth the middle of April, compared with about 6.00 earlier in the year. Continued liquidation of bank per cent a month earlier. holdings of U.S. Government securities and a de­ Yields on corporate and municipal bonds ad­ cline in total loans more than offset small net vanced further between mid-March and mid-April, acquisitions of municipal and Federal agency although they declined somewhat from the new issues. Net repayments of security and nonbank highs reached in the last half of March. Levels of financial loans were large and growth in business market interest rates continued to restrain the loans moderated. volume of offerings, especially State and local The money supply increased $400 million in government bond issues subject to below-market March, or about the same as the reduced January- ceiling rates. Stock prices declined on balance in moderate trading volume. Bureau of Labor Statistics. “Farm products and foods” is BLS Discount rate, range or level for all F.R. Banks. Weekly aver­ “Farm products, and processed foods and feeds.” Latest figures: age market yields for U.S. Govt, bonds maturing in 10 years or Consumer, February; Wholesale, March. more and for 90-day Treasury bills. Latest figures: week ending Apr. 11. 399 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 11 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 A 56 Industrial production A 60 Business activity A 60 Construction Continued on next page A 1 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN □ APRIL 1969 U.S. STATISTICS—Continued 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 TABLES PUBLISHED PERIODICALLY: A 91 Number of banks and branches in operation on December 31, 1968 A 99 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, n, ‘ L Liabilities III, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par­ S.A. Monthly (or quarterly) figures adjusted for ticular unit (e.g., less than 500,000 when seasonal variation the unit is millions) .. (1) Zero, (2) no figure to be expected, or (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. “U.S. Govt, securities” may include guaranteed issues of U.S. Govt, agencies (the flow of funds figures also in­ clude not fully guaranteed issues) as well as direct obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled Note (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Annually—Continued issue Page Quarterly Issue Page Banking and monetary statistics, 1968.. Mar. 1969 A-92—A-102 Flow of funds,....................................... Feb. 1969 M8 May 1968 A-89—A-93 Banks and branches, number, by class and State.................................. Apr. 1969 A-9I Semiannually Flow of funds (assets and liabilities): Banking offices: 1966............................................... Feb. 1968 A-65.10 Analysis of changes in number of. . . Feb. 1969 A-94 1967................................................. May 1968 A-67.10 On, and not on, Federal Reserve Par List, number., ........F..e..b... ..1..9..6.9 A-95 Income and expenses: Federal Reserve Banks................. Feb. 1969 A-92 Member banks: Calendar year................................. May 1968 A-94 Operating ratios..................... Apr. 1968 A-89 Annually Insured commercial banks................. May 1968 A-103 Bank holding companies: List of, Dec. 31, 1967.................... June 1968 A-91 Stock exchange firms, detailed debit Banking offices and deposits of and credit balances: group banks, Dec, 31, 1967.... Aug. 1968 A-93 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 n APRIL 1969 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other Treas­ than member bank Member bank P d e o a ri r t o e d T U o .S ta . l Go B v r o o i t g , u u h t g s ­ t e h c t u R r m c a i e h g t e i p a r e n e s u s t e e r s 5 ­ ­ c v D o a a a n u n d i c s n d ­ e ­ t s s Float2 t T al o ­ 3 s G to o c ld k r s c o e t u i a u n n u r n r g y c t ­ ­ d y ­ r c C t e C u i i n u o n i l r r n a c ­ - y ­ T h c i r u o n a e r g l s a y d h s s ­ ­ T u re r w y as it ­ h re F F e se i o . g r R r v n ­ . e s B , O an th k e s r2 c O F o a t u . c h R n ­ e . t r s B W F a . n R it k h . s re c r C s e a o e n n u i r n c d r v y ­ e 4 s Total Averages of daily figures 1929—June 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 2,314 1933—June 1,933 1,933 250 12 2,208 4,030 2.295 5,455 272 81 164 350 2,211 2,211 1939—Dec. 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—Dec, 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1 .531 292 12,812 12,812 1945—Dec. 23,708 23,708 381 65224,744 20,047 4,322 28.452 2,269 625 1,247 493 16,027 16.027 1950—Dec......... 20,345 20,336 9 142 1,11721,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 .......... 17,391 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 2,42339,873 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—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—Mar. 49,511 49,452 59 682 1,59951,863 11,096 6,798 46,138 1,215 916 165 506 -536 21,354 4,226 25,580 Apr. 50,090 49,943 147 698 1 ,641 52,509 10,484 6,797 46,642 1,122 738 167 538 -598 21,181 4,365 25,546 May 50,581 50,329 252 759 1,58052,998 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 1,71253,813 10,369 6,764 47,486 973 960 181 471 -474 21,350 4,363 25,713 July. 52,090 52,041 49 538 1,87054,573 10,367 6,721 48,089 836 1,026 164 472 -436 21 ,510 4,491 26,001 Aug. 52,646 52,463 183 568 1,76055,048 10,367 6,733 48,194 811 963 170 459 -102 21,653 4,416 26,069 Sept. 52,222 52,208 14 515 1 ,981 54,769 10.367 6,737 48,474 791 611 131 450 -151 21,567 4,510 26,077 Oct.. 53,300 53,252 48 427 1 ,97655,770 10,367 6,757 48,632 781 1,054 137 461 -312 22,141 4,512 26,653 Nov. 53,388 53,322 66 569 2,160 56,183 10,367 6,790 49,398 769 798 164 439 -491 22,263 4,522 26,'785 Dec. 52,529 52,454 75 765 3,251 56,610 10,367 6,810 50,609 756 360 225 458-1,105 22,484 4,737 27,221 1969—Jan.. 52,665 52,622 43 697 3,05456,476 10,367 6,802 49,784 760 602 189 495-1,174 22,988 5,075 28,063 Feb. 52,265 52,074 191 824 2,60255,786 10,367 6,806 49,226 762 641 130 488 -932 22,644 4,647 27,291 Mar. 52,122 51,987 135 918 2,32955,439 10,367 6,819 49,439 729 536 152 463 -902 22,208 4,507 26,715 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 ,473 51,595 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 I ,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 I ,082 1,080 132 499 -698 21 .083 4,296 25,379 22.. 50,549 50,402 147 682 1,861 53,162 10.470 6,795 46,908 1,058 1 ,228 145 486 -462 21,063 4,316 25,379 29.. 50,589 50,589 777 1 ,501 52,923 10,384 6,794 46,937 1,053 1,076 165 463 -442 20,849 4,473 25,322 June 5.. 50,619 50,619 772 1,54052,985 10,382 6,796 47,254 1,042 784 309 477 -742 21,038 4,294 25,332 12.. 50,899 50,609 290 691 1,57653,242 10,367 6,794 47,506 1,004 856 157 457 -779 21,203 4,197 25,400 19. . 50,973 50,850 123 677 1,81253,537 10,367 6,782 47,574 982 1 ,072 146 451 -715 21,176 4,421 25,597 26. . 52,009 51,797 212 820 1 ,737 54,685 10,367 6,766 47,484 947 1,063 161 481 13 21,669 4,548 26,217 July 3.. 52,217 52,217 506 1,831 54,656 10,367 6,720 47,797 880 1,115 185 522 -136 21,380 4,459 25,839 10.. 52,282 52,203 79 425 2,02654,800 10,367 6,724 48,267 837 903 181 490 -392 21,604 4,222 25,826 17.. 51,994 51,890 104 484 1 ,91454,467 10,367 6,727 48,257 831 1,106 155 470 -662 21,404 4,607 26,011 24.. 51 ,904 51,904 652 2,023 54,637 10,367 6,714 48,002 838 998 142 448 -420 21,710 4,551 26,261 31 .. 52,118 52,084 34 615 1,627 54,466 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 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 than member bank Member bank Period Treas­ Cur­ reserves, reserves d o a r te T U o .S ta . l Go B v r o o i t g u , u h t g s ­ t e h c t u R a m r c i g h e t e r i p a e e n s u s e t e r s ­ 1 ­ c v D o a a a n n u d i c d s n ­ e ­ t s s Float 2 t T al o ­ 3 s G to o c ld k r s c o u e i t u n a n u r r n y g c t ­ ­ y d ­ r c e t c u i n i o i n l r c n a ­ y ­ T h c i u o n a r r e g s l y d h a s ­ s­ T u r w e ry a it s h ­ F F e .R i o g . r n ­ Ba O nk th s er 2 c O o F u t a . h c n R e ­ t . r s B W F a . n R it k h . s c r o C a e i n u n n d c r ­ 4 y Total Averages of daily figures Week ending— 1968—Sept. 4.. 52,975 52,975 454 1,707 55,188 10,367 6,730 48,431 787 938 140 457 101 21,430 4,451 25,881 11 . . 52,341 52,341 634 1 ,90454,930 10,367 6,733 48,685 787 147 134 446 60 21,771 4,421 26,192 18. . 51,630 51,630 405 2,203 54,288 10,367 6,735 48,567 790 208 128 465 -292 21,525 4,449 25,974 25.. 51,844 51,844 .......... 475 2,223 54,592 10,367 6,742 48,325 798 866 123 445 -293 21,437 4,418 25,855 Oct. 2.. 52,893 52,829 64 541 1 ,839 55,328 10,367 6,744 48,306 791 1 ,201 145 449 -257 21,803 4,584 26,387 9. . 53,063 53,063 403 1,963 55,482 10,367 6,749 48,550 786 1,072 156 473 -250 21,812 4,683 26,495 16. . 53,496 53,397 99 516 2,01456,133 10,367 6,754 48,764 780 980 132 483 -248 22,366 4,609 26,975 23.. 53,289 53,232 57 337 2,183 55,868 10,367 6,759 48,702 772 1,043 131 450 -377 22,274 4,199 26,473 30. . 53,402 53,345 57 495 1,718 55,671 10,367 6,767 48,556 782 1,092 127 438 -382 22,192 4,528 26,720 Nov. 6.. 53,389 53,294 95 392 1 ,66055,498 10,367 6,776 48,806 774 1 ,079 115 460 -357 21,764 4,590 26,354 13.. 53,740 53,555 185 675 2,031 56,533 10,367 6,786 49,314 764 1 ,036 132 432 -331 22,339 4,731 27,070 20.. 53,502 53,502 513 2,678 56,754 10,367 6,792 49,475 765 615 155 443 -189 22,648 4,312 26,960 27.. 52,945 52,945 .......... 583 2,28055,869 10,367 6,801 49,638 776 645 219 420 -839 22,177 4,417 26,594 Dec. 4.. 53,281. 53,252 29 531 2,278 56,147 10,367 6,807 50,077 776 583 225 448-1,018 22,231 4,628 26,859 11 . . 52,468 52,468 434 2,627 55,589 10,367 6,809 50,383 755 191 233 438 -960 21,725 4,736 26,461 18. . 52,072 52,072 575 3,38456,090 10,367 6,807 50,616 749 70 234 444-1,247 22,399 4,689 27,088 25.. 52,232 52,168 64 859 3,73556,889 10,367 6,812 50,803 754 461 217 445 -1,153 22,541 4,691 27,232 1969—Jan, 1.. 52,981 52,744 237 1 ,320 3,761 58,145 10,367 6,809 50,956 740 579 215 560-1,148 23,419 4,921 28,340 8. . 53,330 53,142 188 498 3,392 57,306 10,367 6,801 50,472 763 579 217 490-J ,201 23,153 4,802 27,955 15.. 52,967 52,967 687 3,068 56,777 10,367 6,800 50,023 762 563 216 487-1,156 23,050 5,517 28,567 22., 52,487 52,487 782 3,13656,456 10,367 6,801 49,537 763 545 201 485-1,232 23,326 5,023 28,349 29.. 51,984 51,984 .......... 891 2,55255,476 10,367 6,803 49,153 761 715 132 477-1,129 22,537 5,035 27,572 Feb. 5.. 52,061 52,053 8 744 2,542 55,397 10,367 6,806 49,061 766 490 129 502 -993 22,616 4,821 27,437 12.. 52,220 52,053 167 799 2,61055,707 10,367 6,807 49,307 761 831 133 477-1,009 22,382 4,878 27,260 19.. 52,541 52,108 433 1 ,044 2,63056,357 10,367 6,809 49,377 764 669 133 500-I ,014 23,105 4,486 27,591 26.. 52,229 52,124 105 757 2,669 55,759 10,367 6,813 49,148 763 562 129 483 -793 22,647 4,452 27,099 Mar. 5.. 52,168 52,055 113 734 2,54055,5(1 10,367 6,813 49,157 758 531 125 481 -718 22,357 4,628 26,985 12.. 52,074 52,040 34 875 2,423 55,427 10,367 6,818 49,459 732 465 156 468 -733 22,064 4,704 26,768 19”. 52,188 51,999 189 775 2,517 55,564 10,367 6,816 49,554 725 490 161 486 -978 22,310 4,374 26,684 26”. 52,081 51,901 180 963 2,291 55,408 10,367 6,821 49,471 721 615 165 436-I,029 22,218 4,375 26,593 End of month 1969—Jan...5..2..,.1..2.7 52,127 864 2,885 55,926 10,367 6,799 48,983 754 517 126 528 -971 23,158 4,821 27,979 Feb...5..2..,.2..95 52,076 219 744 2,780 55,910 10,367 6,716 48,996 725 505 121 482 -691 22,854 4,627 27,481 Mar.”.... 52,430 52,016 414 1,148 1 ,491 55,163 10,367 6,828 49,559 715 783 164 498 -950 21,588 4,485 26,073 Wednesday 1968—Dec. 4.. 52,646 552,646 121 2,571 55,398 10,367 6,809 50,294 768 649 225 446-1,016 21,207 4,628 25,835 11. . 51,413 551 ,413 .......... 273 2,645 54,391 10,367 6,805 50,657 749 58 212 426-1,062 20,524 4,736 25,260 18. . 51,000 551,000 968 3,838 55,861 10,367 6,810 50,789 752 442 228 448-1 ,214 21,592 4,691 26,283 25. . 52,606 52,382 224 332 3,557 56,576 10,367 6,814 51,023 763 168 226 490-1,141 22,228 4,921 27,149 1969—Jan. 1.. 52,937 52,937 186 3,443 56,624 10,367 6,795 50,961 695 703 216 747-1,353 21 ,818 4,921 26,739 8. . 52,722 552,722 180 2,99055,949 10,367 6,799 50,340 765 762 216 469-1,184 21,748 4,810 26,558 15.. 52,187 552,187 958 2,782 55,980 10,367 6,801 49,865 767 613 230 511 -1,220 22,381 5,529 27,910 22.. 52,484 52,484 862 2,625 56,021 10,367 6,804 49,406 768 337 196 496 -1,222 23,211 5,024 28,235 29.. 52,325 52,325 928 2,34255,645 10,367 6,806 49,148 763 498 124 473-1,123 22,935 5,035 27,970 Feb. 5.. 52,062 52,001 61 1,154 2,195 55,460 10,367 6,804 49,209 768 414 U9 481 -1,004 22,644 4,821 27,465 12. . 52,062 51,901 161 1,107 2,907 56,162 10,367 6,807 49,480 765 1,163 133 508-1,106 22,394 4,881 27,275 19.. 52,327 52,167 160 460 2,345 55,288 10,367 6,812 49,348 763 449 119 474 -779 22,093 4,485 26,578 26.. 51,947 51,947 499 2,592 55,089 10,367 6,815 49,197 767 615 110 492 -846 21,936 4,453 26,389 Mar. 5P. 52,076 52,076 745 2,63755,509 10,367 6,815 49,370 742 355 149 498 -730 22,307 4,626 26,933 12”. 51,997 51,997 731 2,048 54,825 10,367 6,816 49,590 732 420 137 468 -918 21,579 4,703 26,282 19”. 52,011 52,011 831 2,43255,358 10,367 6,821 49,614 724 552 159 462 -986 22,021 4,374 26,395 26”. 52,015 51,905 110 997 2,055 55,141 10,367 6,826 49,541 715 502 137 448-1,022 22,013 4,375 26,388 1 U.S, Govt, securities include Federal agency obligations. - < Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning with 1960 reflects a minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 1961 Bulletin, p. 164. weekly averages. Beginning Sept. 12, 1968, amount is based on close-of- 3 Includes industrial loans and acceptances, when held (industrial business figures for reserve period 2 weeks previous to report date. loan program discontinued Aug. 21, 1959), For holdings of acceptances 5 Reflects securities sold, and scheduled to be bought back, under on Wed. and end-of-month dates, see subsequent tables on F.R. Banks. matched sale/purchase transactions. See also note 2. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ APRIL 1969 RESERVES ANO BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks AU member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t l a d l qu R ir e e ­ d 1 Excess r F i o n a . w R g t s . ­ s F er r r v e e e e ­ s T h o e t ld al qui R re e d ­ 1 Excess r F i o n a . w R g t s . ­ s F e r r r e v e ­ e e s T h o e t l a d l qui R re e d ­ 1 Excess r F i o n a .R w g t s . ­ s F e r r r e v e ­ e e s Banks Banks Banks 1929—June............ 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June............ 2 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 1950—Dec.............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1960—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 nt -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—Dec.............. 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—Mar............. 25,580 25,224 356 671 -315 5,149 5,063 86 99 -13 1,176 1,169 7 66 -59 25,546 25,276 270 683 -413 4,993 4,985 8 67 -59 1,159 1,160 -1 104 -105 May....... 25,505 25,085 420 746 -326 4,905 4,871 34 68 -34 1,163 1'151 12 76 -64 25,713 25,362 351 692 -341 5,120 5,029 91 69 22 r,i45 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 26,069 25,694 375 565 -190 4’,940 4^912 28 192 -164 1,165 1,161 4 2 2 Sept............. 26;077 25,694 383 515 -132 4,886 4; 868 18 154 -136 1,147 1,143 4 23 -19 26,653 26,393 260 427 -167 5,096 5,071 25 65 -40 1,182 1,177 5 9 -4 Nov.. 26,785 26,461 324 569 -245 5,022 4'968 54 72 -18 1,153 1,155 -2 7 -9 Dec............ 27,221 26,766 455 752 -297 5,157 5,057 100 230 -130 1 ,199 1,184 15 85 -70 1969—jan............... 28,063 27,846 217 697 -480 5,397 5,392 5 65 -60 1,286 1,287 -1 48 49 Feb.............. 27,291 27,063 228 824 -596 5,190 5,194 -4 63 -67 1,259 1 '253 6 39 -33 Mar.*...... 26,715 26,538 177 918 -742 5,035 5,019 16 65 -49 1 ,204 1,207 -3 98 -101 Week ending—• 1968—Mar. 6.... 25,797 25,481 316 500 -184 5,204 5,167 37 1 36 1,237 1 ,238 -1 96 -97 13.... 25,548 25,090 458 779 -321 5,094 4,963 131 250 — 119 1,149 1,137 12 14 -2 20.... 25,672 25,258 414 733 -319 5,146 5,108 38 159 -121 1 ,166 1 ,170 -4 32 -36 27.... 25,326 25,165 161 582 -421 5,034 5,044 -10 29 -39 1,165 1 ,153 12 50 -38 1968—Oct. 2..,. 26,387 26,002 385 541 -156 5,045 4,970 75 154 -79 1,135 1,128 7 7 9.. .. 26,495 26,270 225 403 -178 5,102 5,149 -47 65 -112 1,130 I J32 -2 -2 16.... 26^75 26,602 373 516 -143 5,279 5,221 58 173 -115 1,251 1,246 5 14 -9 23. 26,473 26,474 -1 337 -338 4,958 5,010 -52 36 -88 1,194 1,205 -11 25 -36 30.... 26,720 26,368 352 495 -143 4,966 4,957 9 12 -3 1,168 1,145 23 23 Nov. 6........ 26,354 26,162 192 392 -200 4,932 4,903 29 46 -17 1,119 1,134 -15 11 -26 13 27,070 26,533 537 675 -138 5,140 5,061 79 129 -50 1,191 1,173 18 18 20........ 26^960 26,731 229 513 -284 5,203 5,123 80 43 37 1,171 1,157 14 14 27........ 26,594 26,409 185 583 -398 4,766 4,821 -55 57 -112 1,128 1,153 -25 10 -35 26,859 26,380 479 531 -52 5,038 4,862 176 74 -102 1,187 1,155 32 13 19 11........ 26,461 26,409 52 434 -382 4,823 4^937 -114 86 -200 1,157 1’174 -17 -17 (8 27,088 26,720 368 575 -207 5,223 5,121 102 104 -2 1,187 1,185 2 45 -43 25........ 27,232 26,812 420 859 -439 5,122 5,017 105 282 -177 1,175 1 ,162 13 149 -136 1969—Jan. 1........ 28,340 27,439 901 1,320 -419 5,571 5,298 273 517 c-244 1,251 1,242 9 188 -179 8 . . . 27 955 27,753 202 498 — 296 5,365 5,379 — 14 -14 1 ,277 1,265 12 55 -43 15....... 28,567 28’335 232 687 -455 5,638 5,662 -24 136 -160 1 ;335 1,348 -13 31 -44 22........ 28,349 28,076 273 782 -509 5,541 5,492 49 86 -37 1,313 1 ,311 2 110 -108 29....... 27,572 27,384 188 891 -703 5,144 5,126 18 57 -39 1 ,243 1,243 9 -9 Feb. 5... . 27,437 27,202 235 744 -509 5,109 5,125 -16 87 -103 1,243 1,245 -2 4 -6 12.... 27,260 27,039 221 799 -578 5,130 5,166 -36 91 -127 1,281 1 ,270 11 81 -70 19.... 27,591 27,228 363 1,044 -681 5,433 5,343 90 64 26 1 ,274 1 ,276 -2 29 -31 26.... 27,099 26,895 204 757 -553 5,191 5,144 47 21 26 1,229 1,228 33 -32 Mar. 5 . . . . 26,985 26,778 207 734 -527 5,079 5,118 -39 111 -150 1,227 1,226 1 34 -33 12.... 26,768 26,520 248 875 -627 5,086 5,021 65 65 1,215 1 ,218 -3 118 -121 19*.. . 26,684 26,628 56 775 -719 4,973 5,071 -98 91 -189 1,232 1,227 5 37 -32 26*... 26,593 26,359 234 963 -729 4,987 4,909 78 86 -8 1,171 1,178 -7 55 -62 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 Period Borrow­ Borrow­ ings at Free ings at Free F.R. reserves F.R. reserves Banks Banks T h o e t l a d l Required 1 Excess T h o e t ld al Required1 Excess 761 749 12 409 -397 632 610 22 327 -305 648 528 120 58 62 441 344 96 126 -30 ...........................1933—June 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ...........................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ...........................1945—Dec. 6,689 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. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 ...........................1967—Dec. 10,247 10,212 35 288 -253 9,009 8,780 229 218 It ........................ .1968—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 10,568 10,501 67 161 -94 9,396 9,120 276 210 66 ........................................Aug. 10,534 10,473 61 194 -133 9,510 9,210 300 144 156 .......................................Sept. 10,758 10,763 -5 186 -191 9,617 9,382 235 167 68 10,863 10,847 16 274 -258 9,747 9,491 256 216 40 .......................................Nov. 10,990 10,900 90 257 -167 9,875 9,625 250 180 70 .......................................Dec. 11,271 11,287 -16 321 -337 10,109 9,880 229 263 -34 ............................1969—Jan. 10,965 10,948 17 420 -403 9,877 9,668 209 302 -93 .......................................Feb. 10,743 10,768 -25 449 -475 9,733 9,544 189 306 -117 .......................................Mar J* Week ending—■ 10,346 10,308 38 234 -196 9,011 8,768 243 169 74 10,238 10,172 66 328 -262 9,066 8,818 248 187 61 ............................................13 10,202 10,181 21 312 -291 9,158 8,799 359 230 129 ...........................................20 10,239 10,201 38 237 -199 8,888 8,767 121 266 -145 ...........................................27 10,620 10,572 48 182 -134 9,587 9,332 255 205 50 ...................................Oct. 2 10,647 10,648 -1 232 -233 9,616 9,341 275 106 169 .......................................... 9 10,884 10,821 63 205 -142 9,561 9,314 247 124 123 ...........................................16 10,742 10,832 -90 107 -197 9,579 9,427 152 169 -17 ...........................................23 10,904 10,810 94 228 -134 9,682 9,456 226 255 -29 ...........................................30 10,645 10,721 -76 150 -226 9,658 9,404 254 185 69 11,054 10,893 161 334 -173 9,685 9,406 279 212 67 ............................................13 10,838 10,934 -96 251 -347 9,748 9,517 231 219 12 ........................................ 20 10,900 10,846 54 282 -228 9,800 9,589 211 234 -23 ...........................................27 10,824 10,788 36 247 -211 9,810 9,575 235 197 38 ........... Dec. 4 10,745 10,772 -27 199 -226 9,736 9,526 210 149 61 ....................................11 10,878 10,846 32 230 -198 9,800 9,568 232 196 36 ...........................................18 10,973 10,942 31 260 -229 9,961 9,691 270 168 102 ...........................................25 11,405 11,138 267 418 -151 10,113 9,761 352 197 155 .......................1969—Jan. 1 11,226 11,301 -75 220 -295 10,087 9,808 279 223 56 .......................................... 8 11,458 11,463 -5 261 -266 10,136 9,862 274 259 15 ............................................15 11,380 11,364 16 372 -356 10,115 9,909 206 214 -8 ...........................................22 11,078 11,116 -38 457 -495 10,107 9,899 208 368 -160 ...........................................29 11,090 11,038 52 310 -258 9,995 9,794 201 343 -142 ..................................Feb. 5 10,955 10,955 — 350 -350 9,894 9,648 246 277 -31 ...........................................12 11,038 10,984 54 619 -565 9,846 9,625 221 332 -111 ............................................19 10,847 10,868 -21 439 -460 9,832 9,655 177 264 -87 ...........................................26 10,870 10,844 26 255 -229 9,809 9,590 219 334 -115 ....................................Mar. 5 10,762 10,763 -1 489 -490 9,705 9,518 187 268 -81 ............................ 12 10,814 10,824 -10 372 -382 9,665 9,506 159 275 -116 ...........................................19” 10,726 10,715 11 532 -521 9,709 9,557 152 290 -138 ...........................................26* 1 Beginning Sept. 12, 1968, amount is based on close-of-business fig­ weeks ending on Wed. that fall within the month. Beginning with Jan. ures for reserve period 2 weeks previous to report date. 1964, reserves are estimated except for weekly averages. 2 This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note,—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS o APRIL 1969 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less—• Net— Gross transactions Net transactions Reporting banks and Total Bor­ week ending— s E er x r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N a d n t n e e e d t k r r s ­ a l S d u e r o f p i r c l u it s r P r e e e q a s r e o v u c r g i f v r e . e e n d s t ch P a u s r e ­ s Sales ac 2 tr t - a i w o n a n s y ­ s 2 b c o b u P h a f y a u n n s i k r n e e ­ s g s t s o b S e a f l a n l l n i e k n e s s g t d L ea o t l a o e n r s s 3 de f r i a r o n o l w g e m s r ­ s 4 lo N a e n t s trans. Total—46 banks 1969—-Feb. 5.......... 50 212 1 ,016 -1,178 9.9 4,042 3,026 2,137 1 ,905 889 1 ,220 92 1,128 12............ 13 340 2,095 -2,422 20.3 4,701 2,606 1 ,973 2,727 633 873 141 732 19. ...... 131 482 I ,515 -1,866 15,4 4.518 3,003 1 ,973 2,545 1 ,030 734 171 563 26............ 153 234 1 ,022 -1,102 9.3 4,462 3,440 2,151 2,311 1 ,289 619 184 435 Mar. 5............ 51 215 1 ,339 -1 ,503 12.7 4,684 3,346 2,083 2,602 1 ,263 841 228 613 12............ 83 342 2,271 2,530 21 .7 5,123 2,852 2,004 3,118 848 674 201 473 19............ -32 252 1 ,934 -2,218 18,9 5,073 3,139 2,045 3,028 1 ,094 617 267 350 26............ 72 352 1 ,655 -1 ,935 16.9 4,681 3,026 2,027 2,653 999 668 344 324 c in New York City Feb. 5............ 15 73 -309 252 5,4 1,172 1 ,482 936 236 545 963 78 885 12............ -19 91 514 -624 3.3 1 ,633 1,119 890 743 229 758 129 629 19............ 83 64 557 -538 11.1 1 ,756 1,199 975 781 224 651 153 498 26............ 102 21 187 -106 2.3 1 ,648 1 ,461 921 727 541 545 166 379 Mar. 5............ 17 104 420 -507 10.9 1,693 1 ,273 863 830 410 738 200 538 12............ 55 1 ,049 -993 ' 21 .8 1 ,960 911 871 1 ,089 40 597 146 451 19............ -48 84 301 -432 9.4 1 ,631 1 ,330 1 ,041 589 289 541 134 407 26....... 39 43 469 -473 10.6 1 ,650 1 ,182 985 666 197 595 155 440 3 c outside New York City 1969—Feb. 5............ 35 139 I ,325 -1,429 19,7 2,870 1 ,545 1 ,201 1 ,670 344 257 14 244 12............ 32 249 1 ,580 -1,798 24.8 3,067 1 ,487 1 ,083 I ,984 404 115 12 102 19............ 48 418 958 -1 ,328 18,3 2,762 I ,804 998 1 ,764 806 82 17 65 26............ 51 213 835 -996 14.0 2,814 1 ,979 1 ,230 1,583 748 74 18 56 Mar. 5............ 34 112 918 -996 13.9 2,991 2,073 1 ,220 1 ,771 853 103 27 75 12............ 28 342 1 ,222 -1 ,536 21.6 3,163 1 ,941 1,133 2,029 808 77 56 22 19............ 16 168 1 ,633 -1 ,786 25.0 3,442 1 ,808 1 ,003 2,439 806 76 133 +57 26....... 33 309 1,186 -1,463 20.8 3 ,030 1 ,845 I ,043 1 ,988 802 73 189 + 116 5 in City of Chicago Feb. 5............ -2 1 229 -232 20.5 616 387 373 243 14 11 11 12............ 8 71 522 -585 50.5 792 270 270 522 19............ 5 21 519 — 535 46.0 776 257 257 519 26............ 4 25 330 -351 31,4 687 358 350 337 8 Mar. 5............ 6 24 494 -512 45.9 809 315 287 521 27 4 4 12............ 3 100 716 -813 73.5 957 241 194 763 47 19............ 9 33 935 -959 86.0 1,158 223 198 960 25 17 17 26............ 38 812 -849 79.4 1 ,081 270 258 824 12 11 ............. 11 3 3 others 1969—Feb. 5............ 37 138 1 ,096 -1,197 19.6 2,254 1,158 828 1,426 331 247 14 233 12 24 179 1 ,059 -I ,213 19.9 2,276 1 ,217 813 1 ,462 404 115 12 102 19............ 43 397 439 -793 13.0 1 ,986 1 ,547 741 1,245 806 82 17 65 26............ 47 188 505 -646 10.8 2,127 1 ,621 881 I ,246 741 74 18 56 Mar. 5............ 29 88 424 -484 8.0 2,182 1 ,758 932 1 ,250 826 99 27 72 12............ 25 242 506 -723 12. 1 2,206 1 ,700 939 1 ,267 761 77 56 22 19............ 7 135 698 -827 13.7 2,284 1 ,585 805 1 ,479 781 59 133 +74 26............ 32 272 374 -614 10.3 1 ,949 1 ,575 785 1,164 790 62 189 + 127 1 Based upon reserve balances, including all adjustments applicable to 4 Federal funds borrowed, net funds acquired from each dealer by the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, clearing banks, reverse repurchase agreements (sales of securities to if any, were deducted. Excess reserves for later periods are net of all carry­ dealers subject to repurchase), resale agreements, and borrowings secured over reserves. by Govt, or other issues, 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur­ Note.—Weekly averages of daily figures. For description of series chases and sales are offsetting. and back data, see Aug. 1964 Bulletin, pp. 944-74. 3 Federal funds loaned, net funds supplied to each dealer by clearing 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

APRIL 1969 □ 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 last par. Sec. 133 Advances and discounts under Advances under Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b)2 Rate on Rate on Rate on Mar. 31, Effective Previous Mar. 31, Effective Previous Mar. 31, Effective Previous 1969 date rate 1969 date rate 1969 date rate Boston.............................................. 5»/2 Dec. 18, 1968 5*4 6 Dec. 18, 1968 534 6 <4 Dec. 18, 1968 64 New York....................................... 5*/i Dec. 18, 1968 514 6 Dec. 18, 1968 534 7 Dec. 18, 1968 6’4 Philadelphia.................................... 5*/I Dec. 18' 1968 5*4 6 Dec. 18' 1968 534 6*4 Dec. 18, 1968 64 Cleveland....................................... 5’71 Dec. 18, 1968 5(4 6 Dec. 18’ 1968 534 7 Dec. 18^ 1968 6% Richmond....................................... 5’71 Dec. 18, 1968 5% 6 Dec. 18 1968 5’4 6 Vi Dec. 18^ 1968 64 A flanta............................................. 5/2 Dec. 18' 1968 5*4 6 Dec. 18 1968 5% 6*4 Dec. 18, 1968 64 Chicago........................................... 5’71 Dec. 18, 1968 5*4 6 Dec. 18, 1968 5% 6*71 Dec. 18,’ 1968 64 St. Louis.................................... 5'/2 Dec. 20' 1968 5l4 6 Dec. 20’ 1968 5% 64 Dec. 20, 1968 64 Minneapolis.................................... 5Vi Dec. 18’ 1968 514 6 Dec. 18^ 1968 5% 64 Dec. 18, 1968 64 Kansas City..................................... 5^4 Dec. 20' 1968 5l4 6 Dec. 20' 1968 5*4 64 Dec. 20, 1968 64 Dallas............................................... 516 Dec. 18, 1968 5*4 6 Dec. 18’ 1968 5% 64 Dec. 18’ 1968 64 San Francisco................................. 5 >4 Dec. 20’ 1968 514 6 Dec. 20, 1968 5’4 614 Dec. 20' 1968 6% • Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for Federal maturity: 4 months. Reserve Bank purchase. Rates shown also apply to advances-, secured 3 Advances to individuals, partnerships, or corporations other than by obligations of Federal intermediate credit banks maturing within 6 member banks secured by direct obligations of, or obligations fully months. Maximum maturity: 90 days except that discounts of certain guaranteed as to principal and interest by, the U.S. Govt, or any bankers’ acceptances and of agricultural paper may have maturities not agency thereof. Maximum maturity: 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 ah F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941........ 1 -m 1 1955—Cont. 1960 Sept. 9............................. 2 -21/4 in 3^ 4 1942 13............................. 214 10.............................m 1 Nov. 18............................. 214-214 in 14............................. 3 ^ Oct. 15................................. ir 1 23............................. 214 3 30................................. t4 3 3 1956 1946 t 1 1 4-1 1 1 ’ 2 3 0 1 . . . A . . . . . . p . . . . r . . . . . . . . . . 1 . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 2 .. 1 .. 4 3 .. - . 3 . 3 i 3 n July 2 1 6 7 .. . . . . 1 . . . 9 . . . . 6 . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 -3 4 14 in 1948 1 -114 in 1957 1964 19................................. 11U514 Aug. 9.....................3.. ....-.3.14 3 Nov. 24............................. 314-4 4 23............................. 314 314 30 ........................... 4 4 ~ 23................................. W 3 -314 3 1950 Dec. 2............................. 3 3 1965 ” 25... A ... u .. g .. . . .. 2 .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......m......-..m.. Ig Jan. 22.... 1 .. 9 .. 5 . 8 .. 3 13............................. 4 41 -4 4 14 4 4 V *4 4 24............................. in 1953 Mar. 7............. 2*2-3 1967 1’4-2 2 13............................. 2'2-21/4 ill 4 -4>4 4 23............................... 2 2 21............................. 21/4 14............................. 4 4 Apr. 18................ "d^ 4 -414 « 1954 May 9............................. 27............................. 414 Feb. 5.......................1.1..4..-..2. 1’4 Aug. 15............................. ir^ ‘ 1 1 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . itU 1 i 1 4 4 u in S O N e c o * p t v t . . . 2 2 1 7 4 3. . . . . . . 2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 - 1 2 4 14 2 2 2*4 M Ap a r r . . 2 1 1 2 5 9 . . . . . . . . . . . . 1 . . . . 9 . . . . . 6 . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 1 5 4 - — 51 5 4 4 5 i 1 n 4 1955 £959 26............................ 514 * 15............................... l1^ 1 1 1 % 4 1 M 6. a .. r .. . . ... 6 ....... . ... . . . . . . . . . . . . . . . . . . . . .......2..1..4 3 .-3 3 3 ~ 30...... 5 .. 1 ..5 4 ..1 - .. 5 4.. 1 .. 4 .. ......... 5 5 1 1 4 4 O IM 1 1 ’ % 4 June 12............................ 3 3 - 1 3 4 14 in 20...... 5 .. 1 .. 4 5..1 - .. 5 4.. 1 .. 4 .. ......... 5 5 1 1 4 4 ~ 5............................... 2 Sept. 11............................. 314—4 4 12............................... 2 -2% 2 ‘ 18............................. 4 4 In effect Mar. 31, 1969... 5 >4 514 f Preferential rate of *4 of 1 per cent for advances secured by U.S. in the following periods (rates in percentages): £955—May 4-6, 1.65; Govt, obligations maturing in 1 year or less. The rate of 1 per cent was Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. continued for discounts of eligible paper and advances secured by such 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, paper or by U.S. Govt, obligations with maturities beyond 1 year. 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.7 5; Oct. 5, 2.50; Oct. 23, Nov. 3, Note.—Discount rates under Secs. 13 and 13a (as described in table 2.75; 1962—Mar. 20-21, 2.75; 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. 439-42. ’ Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 1 1-13, 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 □ APRIL 1969 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 * deposits 2 deposits 2 (all classes of banks) Time depos­ its Reserve Country Other Effective date 1 b C re a e c s n n i e k t t r y s r v a e l 3 b s c a R e i n r t e v y k ­ e s C ba o tr n u y k n s ­ b cl a a ( o n a s k f s ll e s s ) Effective date 1 Un c d it e y r ban O k v s er Unde b r a nks Over d S e in i p a t g s v o s ­ s ­ U ti n m d e e r d ep O os v i e ts r $5 mil­ $5 mil­ $5 mil­ $5 mil­ 55 mil­ S3 mil­ lion lion lion lion lion lion In effect Dec. 31, 1949........ 22 18 12 5 1966—July 14,21........ 5 16ft 3 12 54 34 5 Sept. 8, 15........ 6 1951—Jan. 11,16............... 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2.............. 31/4 1* 1953—July 9,1................. 22 19 13 Mar. 16............. 3 1954—June 24, 16............... 21 5 July 29, Aug. 1.... 20 is 12 1968—Jan. 11,18... . 16ft 17 12 12ft 1958—Feb. 27, Mar. 1.... 1914 1714 11>4 Mar. 20, Apr. 1.... 19 17 11 In effect Mar. 31,1969.. 16ft 17 12 12ft 3 3 6 Apr. 17..................... 18*4 Apr. 24..................... 18 16'4 Present legal I960—Sept. 1..................... 17*4 requirement: Nov. 24..................... 12 Minimum.............. 10 7 3 3 3 Dec. 1..................... 1614 Maximum............. 22 14 10 10 10 1962—July 28..................... (5) Oct. 25, Nov. 1.... 4 i 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. I960, member 3 Authority of the Board of Governors to classify or reclassify cities banks were allowed to count part of their currency and coin as reserves; as central reserve cities was terminated effective July 28, 1962. effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. MARGIN REQUIREMENTS (Per cent of market value) Effective date Regulation Apr. 23, Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, Mar. 11, June 8, 1955 1958 1958 1958 1960 1962 1963 1968 1968 Regulation T: For credit extended by brokers and dealers on— Listed stocks..................................................... 70 50 70 90 70 50 70 70 80 Listed bonds convertible into stocks.................. 50 60 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 Bonds convertible into listed stocks.................. 50 60 Note.—Regulations G, T, and U, prescribed in accordance with the ing the credit; margin requirements are the difference between the market Securities Exchange Act of 1934, limit the amount of credit to purchase and value (100 per cent) and the maximum 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 Mar. 11, 1968, of the market value at the time of extension of these securities collateraliz­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 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*4 4 34 } 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 Single-maturity: 9 6 0 m d o a n y t s h t s o t o 6 1 m 2 o m nt o h n s t . h ... s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 4 4 1 4 44 54 L $1 e 0 ss 0 , t 0 h 0 a 0 n o $ r 1 m 00 o , r 0 e 0 : 0.............. 5'A 5 5 Less than 90 days........................... 1 1 4 30-59 days........................ 54 | 5 It (30-89 days) 9 6 0 0 - - 1 8 7 9 9 d d a a y y s. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 5>/i 6 180 days and over................ 64 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ Note,—Maximum rates that may be paid by member banks as estab­ imum rates on postal savings accounts coincided with those on savings lished by the Board of Governors under provisions of Regulation Q; deposits. however, a member bank may not pay a rate in excess of the maximum 2 For exceptions with respect to certain foreign time deposits, see rate payable by State banks or trust companies on like deposits under Bulletins for Oct 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, the laws of the State in which the member bank is located. Beginning p. 167. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 3 Multiple-maturity time deposits include deposits that are automati­ commercial banks, as established by the FDIC, have been the same as cally renewable at maturity without action by the depositor and deposits those in effect for member banks. that are payable after written notice of withdrawal. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Jan. 29, 1969 Four weeks ending Feb. 26, 1969 Gross demand—Total. .. 177,823 39,280 7,608 63,216 67,719 Gross demand—Total.... 172,894 39,635 7,352 60,760 65,147 Interbank..................... 20,431 7,741 1 ,410 8,737 2,543 Interbank...................... 19,768 8,005 1,255 8,183 2,325 U.S. Govt..................... 3,975 781 264 I ,538 1,392 U.S. Govt...................... 6,053 1 ,437 376 2,305 1 ,935 Other............................ 153,415 30,758 5,934 52,941 63,783 Other............................. 147,073 30,194 5,720 50,272 60,886 Net demand 1.................. 136,020 24,639 5,707 48,514 57,159 Net demand 1................... 132,434 24,526 5,572 47,183 55,154 Time................................. 162,740 20,090 6,024 62,622 74,004 Time................................. 161,803 19,221 5,893 62,073 74,616 Demand balances due Demand balances due from dom. banks......... 9,507 442 479 2,209 6,377 from dom. banks.......... 9,051 435 453 2,163 6,000 Currency and coin.......... 5,094 431 88 1,752 2,823 Currency and coin............ 4,659 390 74 1 ,446 2,749 Balances with F.R. Balances with F.R. Banks........................... 23,016 4,991 1,204 9,684 7,138 Banks............................. 22,688 4,826 1,183 9,536 7,142 Total reserves held.......... 28,110 5,422 1 ,292 11,285 10,111 Total reserves held.......... 27,347 5,216 I ,257 10,982 9,891 Required........................ 27,887 5,415 1,292 11,311 9,870 Required....................... 27,091 5,195 1,255 10,961 9,680 Excess........................... 223 7 -25 241 Excess............................ 256 21 2 21 221 1 Demand deposits subject to reserve requirements are gross demand Note.—Averages of daily figures. Balances with F.R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS a APRIL 1969 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1969 1969 1968 Mar. 26 Mar. 19 Mar. 12 Mar, 5 Feb. 26 Mar. 31 Feb. 28 Mar. 31 Assets Gold certificate account......................... 10,025 10,025 10 025 10,025 10,025 10,025 10,025 10,131 Cash................................................................................. 217 221 227 230 232 219 233 442 Discounts and advances: Member bank borrowings................................... 997 831 731 745 499 1,148 744 657 Other........................................................................... 15 Acceptances: Bought outright.......................................................... 49 49 49 51 51 47 51 55 Held under repurchase agreements,......................... 25 35 47 40 35 Federal agency obligations-—-Held under repurchase agreements............................................................ 5 25 20 57 U.S. Govt, securities: Bought outright: Bills......................................................................... 17,472 17,577 17,645 17,810 17,681 17,583 17,810 16,161 Certificates—Special............................................... Other................................................. Notes........................................................................ 30,046 30,046 29,988 29,926 29,926 30,046 29,926 27,168 Bonds....................................................................... 4,387 4,388 4,364 4,340 4,340 4,387 4,340 6,302 Total bought outright................................................ 51,905 52,011 51,997 52,076 51,947 52,016 52,076 49,631 Held under repurchase agreements........................... 105 389 199 60 Total U.S. Govt, securities................... 52,010 52,011 51,997 52,076 51,947 52,405 52,275 49,691 Total loans and securities.............................................. 53,086 52,926 52,777 52,872 52,497 53,672 53,130 50,510 Cash items in process of collection............................... P8,43! ”9,397 ”8,700 ”9,442 8,618 ”7,974 8,404 6,561 Bank premises................................................................ 113 114 115 114 ’113 114 113 113 Other assets: Denominated in foreign currencies....................... 2,078 2,019 1,935 1 ,938 2,016 2,059 1 ,938 1 542 IMF gold deposited2................................................ 231 231 231 231 231 231 ’231 241 All other...................................................................... 478 445 412 392 350 502 358 434 Total assets...................................................................... ”74,659 ”75,378 ”74,422 ”75,244 74,082 ”74,796 74,432 69 974 Liabilities F.R. notes........................................................................ 43,305 43,396 43,391 43,185 43,039 43,324 42,897 40,679 Deposits: Member bank reserves........................................... ”22,013 ”22,021 ”21,579 ”22,307 21,936 ”21,588 22,854 21,133 U.S. Treasurer—General account............................. 502 552 420 355 615 '783 505 581 Foreign........................................................................ 137 159 137 149 110 164 121 197 Other: IMF gold deposit2.................................................. 231 231 231 231 231 231 231 241 All other................................................................ 217 232 237 267 261 278 251 462 Total deposits.................................................................. ”23,100 ”23,195 ”22,604 ”23,309 23,153 ”23,044 23,962 22,614 Deferred availability cash items.................................... 6,376 6,964 6,652 6,805 6,026 6,472 5,624 4,944 Other liabilities and accrued dividends......... 399 398 404 422 394 433 465 315 Total liabilities............................................................... ”73,180 ”73,953 ”73,051 ”73,721 72,612 ”73,273 72,948 68,552 Capital accounts Capital paid in............................................................ 641 640 638 637 638 643 638 612 Surplus............................................................................. 630 630 630 630 630 630 630 598 Other capital accounts......................... 208 155 103 256 202 250 216 212 Total liabilities and capital accounts............................ ”74,659 ”75,378 ”74,422 ”75,244 74,082 ”74,796 74,432 69,974 Contingent liability on acceptances purchased for foreign correspondents........................................... 120 H9 105 99 100 122 99 100 U.S. Govt, securities held in custody for foreign account.................................................................... 8,011 8,120 8,032 8,017 8,426 8,012 8,062 8,418 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 46,284 46,322 46,351 46,328 46,412 46,480 46,353 43,367 Collateral held against notes outstanding: Gold certificate account........................................ 3,522 3,522 3,522 3,522 3,522 3,522 3,522 6,159 U.S. Govt, securities................................................. 44,970 44,970 44,970 45,040 45,091 44,970 45,090 38,571 Total collateral............................................................... 48,492 48,492 48,492 48,562 48,613 48,492 48,612 44,730 i Reflects securities sold, and scheduled to be bought back, under matched sale-purchase transactions. 2 See note 1(b) to table at top of p. A-73. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1969 (In millions of dollars) Phila­ Kan­ San Item Total Boston New del­ Cleve­ Rich­ Atlan­ Chi­ St. Minne­ sas Dalias Fran­ York phia land mond ta cago Louis apolis City cisco Assets Gold certificate account...................... 10,025 602 2,207 576 870 900 487 1 ,591 364 222 386 468 1 ,352 F.R. notes of other banks................... 908 82 230 60 80 69 128 52 23 15 26 32 111 Other cash............................................ 219 II 24 8 26 17 29 20 23 5 17 11 28 Discounts and advances: Secured by U.S. Govt, securities.... 804 33 66 13 27 49 62 315 75 31 38 16 79 Other................................................ 344 6 2 34 204 17 58 1 22 Acceptances: Bought outright............................... 47 47 Held underrepurchase agreements.. 47 47 Federal agency obligations—Held under repurchase agreements...... 25 25 U.S. Govt, securities: Bought outright............................... 52,016 2,672 13,265 2,667 4,015 3,858 2,739 8,570 1 ,803 987 1 ,968 2,145 7,327 Held under repurchase agreements.. 389 389 Total loans and securities................... 53,672 2,705 13,845 2,680 4,042 3,909 2,835 9,089 1 ,895 1 ,076 2,006 2,162 7,428 Cash items in process of collection... 11 ,042 676 2,064 606 787 818 1 ,024 1 ,859 520 367 752 632 937 Bank premises...................................... 114 3 10 2 5 11 18 17 8 4 18 9 9 Other assets: Denominated in foreign currencies.. 2,059 99 1523 107 183 107 132 305 72 47 89 117 278 IMF gold deposited 2...................... 231 231 All other........................................... 502 25 129 27 41 37 26 80 18 9 20 21 69 Total assets.............................................. 78,772 4,203 19,263 4,066 6 ■ ,0 — 34 5,868 --- 4 -- ,6 — 79 13,013 2,923 1,745 3,314 3,452 10,212 Liabilities F.R. notes............................................ 44,232 2,562 10,261 2,536 3,604 4,038 2,351 7,889 1,639 759 1,653 1 ,524 5,416 Deposits: Member bank reserves..................... 21,588 901 5,710 939 I ,478 944 1,347 3,068 717 602 926 1,269 3,687 U.S. Treasurer—General account.. 783 1 775 1 1 I 1 * 1 2 Foreign............................................. 164 7 360 7 12 7 9 21 5 3 6 8 19 Other: IMF gold deposit 2...................... 231 231 All other....................................... 523 5 304 6 8 34 37 33 io 6 28 16 36 Total deposits............................. 23,289 914 7,080 952 1 ,499 986 1,393 3,123 733 611 960 1,294 3,744 Deferred availability cash items......... 9,295 632 1 ,412 479 763 730 818 1,701 485 332 621 535 787 Other liabilities and accrued dividends 433 21 122 21 32 30 22 69 14 9 16 16 61 Total liabilities..................................... 77,249 4,129 18,875 3,988 5,898 5,784 4,584 12,782 2,871 1,711 3,250 3,369 10,008 Capital accounts Capital paid in..................................... 643 31 163 33 59 33 42 95 22 15 28 37 85 Surplus.................................................. 630 31 160 33 56 33 40 93 22 14 27 36 85 Other capital accounts,....................... 250 12 65 12 21 18 13 43 8 5 9 10 34 Total liabilities and capital accounts. . 78,772 4,203 19,263 4,066 6,034 5,868 4,679 13,013 2,923 1,745 3,314 3,452 10,212 Contingent liability on acceptances purchased for foreign correspond­ ents................................................ 122 6 432 6 11 6 8 18 4 3 5 7 16 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 46,480 2,658 10,849 2,627 3,858 4,178 2,517 8,164 1 ,713 784 1,712 1,666 5,754 Collateral held against notes out­ standing: Gold certificate account.................. 3,522 200 500 300 560 600 .......1. .,.0.00 180 27 ..........1..55 ............ U.S. Govt, securities....................... 44,970 2,531 10,600 2,500 3,400 3,649 2,600 7,650 1 ,600 785 1 ,775 1 ,630 6,250 Total collateral..................................... 48,492 2,731 11,100 2,800 3,960 4,249 2,600 8,650 1 ,780 812 1,775 1,785 6,250 i After deducting $1,536 million participations of other F.R. Banks. 3 After deducting $104 million participations of other F.R. Banks. 2 See note 2 to table at bottom of page A-73. 4 After deducting $90 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 □ APRIL 1969 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 p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f r m r t s i p t , y ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o u i c r f r h t i s . t y tions 1968—Feb............. 967 770 100 917 770 10O 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 Sept............ 5,515 5,605 115 5,403 5,605 115 31 31 Oct............. 2,736 2,246 2,601 2,246 53 308 27 -308 Nov............. 3,602 3,430 150 3,602 3,430 150 -6,293 5,586 Dec............ 6,100 6,334 180 6,100 6,334 180 358 -358 1969—Jan.............. 4,011 4,590 231 4,011 4,590 231 Feb............. 1,234 1 ,110 175 1,149 1,110 175 23 -8,479 33 6,095 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 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 G s i e t o i c e v u s t. r­ p ( m u a n g r e e c r t n h e t r e a s e ­ s ) ­ e r O i n g u e h t t t ­ , a r m c e g h n e p r a e e n u s t e t r e s ­ ­ , change 1 1968—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 4,636 12 2,497 2,734 647 -5 -43 599 Sept.... 45 5 440 235 9 -4 39 280 Oct..... 50 7 790 ”i,‘236" 50 -9 9 -39 11 Nov.... 708 980 980 21 2 23 Dec.. . . 1,369 1 ,369 -414 * -414 1969—Jan....... 371 371 -810 -8 -818 Feb.. . . 24 2,384 6 2,517 2,318 148 20 1 40 209 l Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o e u rl n in d g s B fr e a lg n i c a s n C d a o n l a l d ar ia s n D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a il n t d h d e e s r r s ­ f S r w an is c s s 1967—Dec............................... 1,604 1,140 45 3 1 413 1 1 ♦ 2 1968—Jan................................ 1 ,470 1,142 45 253 1 25 1 1 3 Feb................................ 1,489 1,152 50 253 1 27 1 1 • 4 Mar............................... 1,542 1,197 50 253 1 33 2 1 2 4 Apr............................... 1,536 1,195 50 256 1 26 2 2 4 May............................. 1^926 1,544 50 256 67 2 2 4 June.............................. 1,009 '503 52 132 25 101 134 I 1 57 4 July............................... 1,217 851 52 8 25 151 69 1 1 57 2 Aug...................... 1,055 601 53 4 25 235 75 1 57 3 Sept............................... 1,281 698 13 4 452 75 1 1 33 3 Oct................................ 1 ,273 694 124 4 378 65 1 1 4 3 Nov............................... 2,211 1 ,443 Ill 4 571 75 1 1 4 3 Dec............................... 2,061 1 ,444 8 3 ..........4..3..3. 165 1 1 4 3 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 1969 1969 1968 Mar. 26 Mar. 19 Mar. 12 Mar. 5 Feb. 26 Mar. 31 Feb. 28 Mar. 31 Discounts and advances—Total.................................... 997 831 731 745 499 1,148 744 672 Within 15 days............................................................ 991 827 728 739 494 1,141 730 656 16 days to 90 days...................................................... 6 4 3 6 5 7 14 16 91 days to 1 year........................................................ Acceptances—Total........................................................ 74 84 49 51 51 94 91 90 Within 15 days............................................................ 34 48 15 18 17 53 55 39 16 days to 90 days...................................................... 40 36 34 33 34 41 36 51 91 days to 1 year....................................................... U.S. Government securities—Total.............................. 52,015 52,011 51,997 52,076 51,947 52,430 52,295 49,748 Within 15 days............................................................ 2,643 2,683 2,168 2,139 2,598 1,833 1,610 1 ,264 16 days to 90 days..................................................... 8,798 8,491 8,765 8,933 8,437 9,508 9,231 11,801 91 days to I year....................................................... 8,054 8,317 8,014 8,029 7,937 8,569 8,479 26,404 Over 1 to 5 years....................................................... 18,507 18,507 19,049 19,008 19,008 18,507 19,008 7,948 Over 5 years to 10 years............................................ 13,376 13,376 13,370 13,350 13,350 13,376 13,350 1 ,756 Over 10 years............................................................. 637 637 631 617 617 637 617 575 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period T 2 o 3 t 3 a l Leading SMSA’s T S o M ta S l A 23 ’s 2 o 2 th 26 e r T 2 o 3 t 3 a l Leading SMSA’s T S o M ta S l A 23 ’s 2 o 2 th 26 e r SMSA’s N.Y. 6 others2 N (e . x Y cl . . ) SMSA’s SMSA’s N.Y. 6 others2 N (e . x Y cl .) . SMSA’s 1968—Feb.............................. 7,263.9 3,216.8 1,593.3 4,047.1 2,453.8 r60,1 129.2 r56.5 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 Oct............................... 8,599.8 3,953.7 1,904.9 4,646.1 2,741.2 66.3 143.1 64.4 45.6 37.7 Nov.............................. 8’540.1 3,925.9 1,904.1 4,614,2 2,710.1 66.5 144.6 63.0 44.9 37.4 Dec.............................. 8,752,9 4,076.8 1'902.4 4,676.1 2,773.7 65.9 147.7 61.1 44.5 37.5 1969—Jan............................... 8,733.3 3,896.7 2,007.7 4,836.6 2,828.9 64.9 137.0 ^66.3 ^S.l G7.7 Feb............................... 8,832.8 3,929.8 2,047.4 4,903.0 2,855.6 67.8 145.4 67.8 47.4 39.1 Mar............................. 8,723.3 3,882.8 1,974.3 4,840.5 2,866.2 65.8 143.1 64.5 46.1 38.9 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. The data shown here differ from those shown in the Mar. 1965 Bulletin because they have been revised, as described in the Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ APRIL 1969 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin JI 2 S2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939...................... 7.598 5,553 590 559 36 1 019 1 772 1 576 2 048 460 919 191 425 20 32 1941...................... 11 160 8,120 751 695 44 I 355 2 731 2*545 3*044 724 1 433 261 556 24 46 1945...................... 28,515 20,683 1 274 1 039 73 2 313 6*782 9*201 7*834 2 327 4*220 454 801 7 24 1947...................... 28,86g 20,020 1,404 1 048 65 2 110 6*275 9 119 8^850 2548 5 070 428 782 5 17 1950...................... 27’741 19,305 1,554 1 113 64 2,049 5*998 8 529 8,438 2*422 5,043 368 588 4 12 1955...................... 31358 22’021 1,927 1 312 75 2; 151 6* 617 9 940 9 136 2*736 5,641 307 438 3 12 1958..................... 32193 22 856 2 182 1 494 83 2,186 6*624 10 288 9 337 2 792 5 886 275 373 3 9 1959..................... 32,591 23,264 2,304 1 511 85 2,216 6 672 10 476 9 326 2 803 5,913 261 341 3 5 1960...................... 32,869 23 321 2327 1*533 88 2,246 6*691 10*536 9 348 2*815 5,954 249 316 3 10 1961...................... 33918 24'388 2382 1 588 92 2,313 6 878 10 935 9 531 11869 6 106 242 300 3 10 1962...................... 35,338 25,356 2,782 1636 97 2,375 7*071 11 395 9*983 2 990 6 448 240 293 3 10 1963...................... 37 692 26,807 3 030 1 722 103 2 469 7*373 12 109 10 885 3; 221 7 110 249 298 3 4 1964...................... 39,619 28,100 3,405 1306 111 2,517 7*543 121717ll^Sl? 3*381 7,590 248 293 2 4 1965...................... 42 056 29 842 4 027 1 908 127 2,618 7 794 13 369 12 214 3 540 8,135 245 288 3 4 1966...................... 44,663 31,695 4,480 2*051 137 2,756 8 070 14^01 12’969 3 *700 8,735 241 286 3 4 1967...................... 47,226 33 468 4 918 2 035 136 2 850 8 366 15 16213 758 3*915 9 311 240 285 3 4 1968—Feb........... 45,846 32,284 4 969 1 895 136 2,665 8 000 14,619 13 563 3 820 9 213 239 284 3 4 Mar........... 46,297 32’664 5,049 1 857 136 2;676 8 094 14 85213 632 3*840 9,261 239 285 3 4 Apr............ 46 621 32 938 5’137 1 875 136 2,684 8 104 15 00213 683 3857 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 15,42413,895 3^32 9,430 240 ' 286 3 4 July........... 47,979 33,963 5,385 1 871 136 2,720 8,261 15 59014 015 3 971 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 Sept........... 48,340 34,161 5,498 1,872 136 2,732 8 269 15 65414 179 4’602 9,641 241 288 3 4 Oct........... 48,719 34,421 5 365 1 900 136 2,’763 8 336 15 72214 299 4’028 9,734 241 289 3 4 Nov........... 49,989 35 389 5,625 1 957 136 2,862 8 627 16,282 14 500 4*092 9,869 242 290 3 4 Dec............ 50,961 36;163 5,691 2,049 136 2^93 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969—Jan............ 48,983 34,401 5,673 1,907 136 2,779 8 257 15,650 14 582 4 090 9,951 244 291 3 4 Feb............ 48,996 34,421 5,603 1,895 136 2,784 8,318 15,685 14,576 4; 080 9,955 243 291 4 4 1 Outside Treasury and F.R. Banks. Before 1955 details arc slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by standing As security For F.R. 1969 1968 Kind of currency Feb. 28, against F.R. Banks 1969 gold and Treasury Banks and silver cash and Agents Feb. Jan. Feb. certificates Agents 28 31 29 Gold................................................................................ 10,367 (10,025) 2342 Gold certificates.............................................................. (10,025) 310,024 1 Federal Reserve notes............................................... 46,354 118 3,453 42,782 42,700 40,135 Treasury currency—Total.............................................. 6,716 265 236 6,214 6,283 5,711 Standard silver dollars................................................... 485 3 482 482 482 Silver certificates............................................................ 361 Fractional coin........................................................... 5,601 246 234 5,121 5,191 4,487 United States notes.................................................... 323 16 2 304 303 296 In process of retirement 4.......................................... 307 307 307 85 Total—Feb. 28, 1969................................................... 563,436 (10,025) 725 10,024 3,691 48,996 Jan. 31 1969.................................................. 564,020 (10,025) 754 10,024 4,260 48,983 Feb. 29, 1968.................................................. 561,934 (11,747) 1,265 11,382 3,440 45,846 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Docs not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. A-5. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $231 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 * 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

APRIL 1969 a MONEY SUPPLY; BANK RESERVES A 17 MONEY SUPPLY AND RELATED DATA (In billions of dollars) Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U.S. deposits deposits Govt, Total c C om ur p re o n n c e y n t 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 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 o a s n it d s 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—Dec.................................................. 181 .3 40.4 140.9 183,5 187.1 41.2 145.9 182.0 5.0 1968—Mar.................................................. 183.4 41.1 142.2 186.7 182.0 40.7 141.2 187.7 6.6 Apr................................................. 184.3 41.4 143.0 187.1 185.6 41.1 144.5 187,9 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................................................ 190.3 42.6 147.6 193.8 186.9 42.7 144.2 194.4 5.5 189.5 42.7 146.7 196.6 188.6 42,7 145.8 196.2 5.9 Oct................................................... 190.2 42.8 147.4 199.5 190.6 42.9 147.7 199.1 6.1 Nov................................................ 191.9 43.2 148.7 201.9 193.4 43,7 149.7 200.7 4.2 Dec.................................................. 193.1 43.4 149.6 204,3 199.2 44,3 154.9 202.5 4.8 1969—Jan.................................................. U93.7 43.6 150.1 202.5 U99.5 43.5 155.9 202.1 4.7 Feb............................. . 193.8 43.9 149.9 201.0 U92.4 43.4 149.0 201,6 6.6 Mar.3’.............................................. 194.2 44.1 150.1 200,9 192.7 43.7 149.0 202,0 4.5 Week ending—• Feb 5............................................ 192,8 43.7 149,1 201.0 195.2 43.4 151.9 201.4 7.3 12........................................... 192.9 43.9 149,0 201,0 193.0 43.6 149.4 201.6 7.0 19............................................ 194.8 44.0 150.9 201.0 192.3 43.5 148.9 201,6 6,5 26........................................... 194.3 43. 8 150,5 200.9 190.1 43.2 146.9 201.7 6.4 Mar. 5........................................... 193.8 43.8 149.9 200.7 192.4 43.6 148.8 201.7 5.0 12........................................... 193.6 44. 1 149.5 200.9 192,7 43.9 148.8 202.0 4.0 19........................................... 194.0 44.2 149.9 200.7 193.3 43.8 149.4 201.9 4.4 26i’......................................... 194.6 44. 3 150.4 200,9 191 .5 43.6 147.9 201.9 5.6 Apr. 2*’......................................... 195.1 44.3 150.8 201,1 193.9 43.7 150,2 202.3 3.5 1 At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ Note.—For revised series beginning Jan. 1963, see June 1968 Bul­ rency outside the Treasury, F.R. Banks, and vaults of all commercial letin, pp. A-92—A-97. For monthly data 1947-5 8, see June 1964 Bul­ banks. Time deposits adjusted are time deposits at all commercial letin, pp. 679-89; and for data for 1959-62, see Aug. 1967 Bulletin, banks other than those due to domestic commercial banks and the pp. 1303-16. U.S. Govt. Effective June 9, 1966, balances accumulated for payment of Averages of daily figures. Money supply consists of (1) demand personal loans were reclassified for reserve purposes and are excluded from deposits at all commercial banks other than those due to domestic com­ time deposits reported by member banks. AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Member bank reserves 1 re D se e r p v o e s r it e s q s u u ir b e je m c e t n to ts 2 Member bank reserves1 re D se e r p v o e s i r t e s q s u u i b re je m c e t n to ts 2 Period Total r N o b w o o r e n ­ d ­ qu R i e re ­ d Total sa T a v i n m in d e g s de v P m a r t a i e ­ n d d G e U m o . v S an t . , d Total r N o b w o o r n e ­ d ­ qu R i e re ­ d Total s T a a v i n m in d e g s de v P m a r t a i e ­ n d d G e U m o . v S a t n . , d 1965—Dec....... 22.64 22.15 22.31 236.6 121.2 111.0 4.4 23.23 22,77 22.77 239.0 119.8 115.2 4.0 1966—Dec....... 22.90 22,29 22.60 244.6 129.4 111.7 3.5 23.47 22,91 23.08 247.1 127.9 116.1 3.0 1967—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—Mar.... 25.81 25.14 25.40 278.0 151.2 120.1 6.7 25.58 24.91 25.22 277.1 152.2 119.1 5.8 Apr....... 25.62 24,94 25,28 276.9 151.3 120,4 5.2 25.55 24,86 25.28 277.5 152.0 121.7 3.7 May.... 25.71 24.98 25.24 277.3 151.5 122,1 3.7 25.51 24.76 25.09 276.5 152.3 118.6 5.6 June.... 25.82 25. 12 25.44 278.8 151.8 123,2 3.9 25.71 25,02 25,36 278.3 152.2 121.3 4.8 July.... 25.92 25,43 25.60 280.9 153.8 124,3 2.7 26.00 25,48 25.70 281.7 154,1 122.6 5.0 Aug....... 26.43 25.92 26,05 285.9 156.5 124.6 4.8 26.06 25.50 25,69 283.6 157.2 121.7 4.8 Sept...... 26.40 25.95 26.16 287.9 158.9 123,6 5.3 26.32 23,84 26.03 286.7 158.6 123.0 5.2 Oct....... 26.61 26.21 26.34 290.9 161.5 124.5 5.0 26.64 26.21 26.40 291.2 161.0 124.8 5.4 Nov..,.. 26,73 26. 16 26,52 293,6 163.5 125,4 4.7 26.76 26,19 26,47 292.4 162.3 126.4 3.6 Dec....... 26.98 26. 14 26.69 296.7 165.8 126.7 4.2 27.17 26,40 26.77 299.7 163.8 131.8 4.1 1969—Jan........ 27,19 26.44 27.01 295.1 163.2 126.6 5.3 28.06 27,37 27.85 299.0 162.7 132.1 4.2 Feb....... 27.21 26.39 27.01 294,8 161.0 127.2 6.7 27.29 26.47 27.06 293.9 161.8 126,2 5.9 Mar.3’,.. 27.04 26.11 26.80 292,5 160.5 127.1 4.8 26.71 25,80 26.53 291.6 161.6 126,0 3.9 1 Averages of dally figures. Data reflect percentage reserve requirements and demand balances due from domestic commercial banks. Effective June made effective Jan. 18, 1968. For comparability with past data, Sept, 9, 1966, balances accumulated for repayment of personal loans were elim­ figures reflect required reserves based on current deposits, the method of inated from time deposits for reserve purposes. Jan. 1969 data are not calculating required reserves that was in effect prior to Sept. 12. Under comparable with earlier data due to the withdrawal from the system on the revised Regulation D, required reserves henceforth will be based Jan. 2, 1969, of a large member bank,. on average deposits with a 2-week lag. 2 Averages of daily figures. Deposits subject to reserve requirements in­ Note.—Back data for the period 1947 to date may be obtained from clude total time and savings deposits and net demand deposits as defined the Banking Section, Division of Research and Statistics, Board of Gover­ by Regulation D. Private demand deposits include all demand deposits ex­ nors of the Federal Reserve System, Washington, D. C. 20551. cept those due to the U.S. Govt., less cash items in process of collection Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 18 BANKS AND THE MONETARY SYSTEM □ APRIL 1969 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date ury U.S. Government securities liabil­ Capital cur­ ities Total and Gold s r t o e i a n n u n g c t d ­ y ­ Total n L e o t a 3 n , s , 2 Total C a o n m d l. R Fe e d se e r r v a e l Other3 O r s i e t t i h c e u e s r ­ 2 ca a n p n e it d t a l, c d u e r a p r n e o d n si c t y s c m o a n u i c e s n c ­ t t . s , savings Banks banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107,086 81,199 22 559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30................... 22,706 4’636 171’667 60 366 96,560 72,894 20 778 2*888 14'741 199 008 184'384 14,624 1967—Dec. 30................... 11 ’982 6’784 468’943 282 040 117’064 66,752 49 112 1 200 69,839 487 709 444,043 43 370 1968—Mar. 27................... 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.................. 10’500 6300 469,900 282,300 114 400 64,100 49*300 1 000 73 300 487 100 440,800 46,400 May 29.................. 10'400 6’800 472,400 283’100 116 300 64300 50*500 1,100 72 300 489 500 441,300 48,200 June 29............ 10367 6'708 479,667 289 920 115 818 62,809 52 230 779 73,929 496 742 447’839 48,901 July 31.................. 10,400 6,700 484,600 292 300 117 900 64'700 52*400 800 74,400 501 700 451'700 50,000 Aug. 28.................. 10,400 6,700 485,500 291 100 118 400 65,700 52*600 100 76300 502 600 451 300 50,900 Sept. 25?.................. 10’400 6,700 492,200 295 300 119300 66,700 52*400 100 77 300 509,300 45 7 3 00 51 ,700 Oct. 30?.................. 10,400 6,800 497'700 296,300 122,400 68,800 53 600 100 78'900 514,800 463'300 51 '500 Nov. 27?........... 10 300 6'800 499’000 299 400 120*000 66,700 53 200 100 79’,700 516 200 464’700 51’500 Dec. 31?........,. 10,’400 6’800 512,900 310 500 121,500 68,500 52,’900 100 80,900 530,100 482,000 48,100 1969—Jan. 29?................ 10,400 6,800 503,500 303,700 119,100 66,800 52 300 100 80,600 520,600 468,600 52,000 Feb. 26?.................. 10300 6’800 501 300 305 500 115 100 63,100 51 900 100 81,100 518 900 465'400 53'400 Mar. 26?.................. 10300 6,800 502'700 306,600 114,200 62,200 52,000 100 81 300 519,900 465,000 55’000 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date Total o r u C e t n u s c i r d y ­ e de m D p a o e n s ­ d it s Total o r u C e t n u s c i r d y ­ e de m D p a o e n s ­ d it s Total m C e o rc m ia ­ l M sav u i t n u g a s l S P a S o v y s i s t n a ­ g l s e n F i e g o t n r , ­ 7 T c u r a e r s y a h s ­ c a o A n m d t l . F A .R t . banks jus a t d ed ­ 5 banks jus a t d ed ­ 5 banks 1 banks 6 tem 3 h in o g ld s ­ s b a a v n in k g s s Banks 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 1967—Dec. 30.. . . 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1 ,344 5,508 1,123 1968—Mar. 72 . . . 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 . . . 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 . . . 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 . . . 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 ,500 143,800 259,600 196,100 63,500 2,100 800 8,900 1,000 Oct. 30?. .. 187,900 41,600 146,300 189,600 41,800 147,800 263,300 199,600 63,700 2,100 800 6,400 1 ,200 Nov. 27?. .. 189,500 42,300 147,200 192,500 43,500 149,000 265,100 201,200 63,900 2,400 800 3,600 400 Dec. 31 ?... 198,400 42,600 155,800 206,000 43,500 162,500 266,800 202,200 64,600 2,500 800 5,400 700 1969—Jan. 29?... 189,400 42,700 146,700 191,900 42,100 149,800 265,500 200,700 64,800 2,200 800 7,700 500 Feb. 26?... 190,700 42,800 147,900 189,700 42,300 147,500 266,200 201,000 65,200 2,100 800 6,000 600 Mar. 26?. . . 192,900 43,200 149,700 190,100 42,800 147,300 267,100 201,300 65,800 2,100 700 4,500 500 1 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits June 1961, also includes certain accounts previously classified as other lia­ accumulated for payment of personal loans’* were excluded from “Time bilities. deposits*’ and deducted from “Loans” at all commercial banks. These 2 Reclassification of deposits of foreign central banks in May 1961 re­ changes resulted from a change in Federal Reserve regulations. These hy­ duced this item by $1,900 million ($1,500 million to time deposits and $400 pothecated deposits are shown in a table on p. A-23. million to demand deposits). 2 See note 2 at bottom of p. A-22. 3 After June 30, 1967, Postal Savings System accounts were eliminated Note.—For back figures and descriptions of the consolidated condition from this Statement. statement and the seasonally adjusted series on currency outside banks 4 Series begin in 1946; data are available only last Wed. of month. and demand deposits adjusted, see “Banks and the Monetary System,” s 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

APRIL 1969 □ 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 Securities a C ss a e s t h s 3 b T i a l H o i n t a t d i a e - l s Total 3 Interbank3 Dema O nd ther r B i o n o w g r s - ­ c c T o a a o p u c t i n ­ a t t a l s l b N a o u n m f k s - G U o . v S t . . Oth 2 er c c o a a u p c i n ­ ta ts l 4 m D a e n ­ d Time U.S. Other Ti 1 m . 5 e Govt. All banks: 1941—Dec. 31....... 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10.982 44.355 26,479 23 8,414 14,826 1945—Dec. 31............... 140,227 30,361 101,288 8,57735,415 177,332 165,612 14.065 105.935 45,613 227 10,542 14,553 1947—Dec. 316............. 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 66 11,948 14,714 j 967—Dec. 30.............. 424,134287,543 66,75269,83978,924517,374455,501 21,883 1 ,314 5,240 184,139242,925 5,84639,371 14,223 1968—Mar. 27............. 423,870285,950 65,61072,31064,860 502,940436,290 16,710 1,280 5,320 163,180249,800 8,150 39,670 14,218 Apr. 24.............. 427,760290,460 64,14073,16064,740 506,710438,830 17,340 1,230 4,040 166,630249,590 8,93039,870 14,215 May 29............. 429,790292,180 64^69072,92065,980 509 320 439,590 17,340 1,100 5,060 165,260250,830 9,700 40,220 14,221 June 29. 434,415297,677 62,80973,92976,293 525,856 456,87420,638 1 ,095 4,977 177.930252,234 8,196 40,885 14,224 July 31............. 440,760301,620 64,74074,40070,540526,100454,140 19,170 1 ,310 5,800 172,690255,17010,15040,850 14,219 Aug. 28............. 443,320301,640 65,68076,00067,930 525,720451,330 18,020 1 J50 4,970 168,800258,19011,13041,030 14,216 Sept. 25 p............ 449,800305,470 66,68077,65070,630 535,240459,540 19,250 1 ,410 8,540 170,420259,920 11’66041,280 14,209 Oct. 30p........... 455,130307,430 68,76078,94072,270542,480466,410 19,690 1 '330 6,070 175,730263,590 11,66041,590 14,205 Nov. 27p............ 457,520 311’120 66,74079,66077,130 549,860471,29020,500 1,260 3,250 180,900265,380 13,020 41,760 14,187 Dec. 31p....... 468,550319,140 68,48080,93083,700568,980496,51024,530 1 ,230 5,020 198,630267 JOO 8,87042,020 14'179 1969—Jan. 29p............ 462,930 315 530 66,76080,64072,660 551,070 471,510 19,370 1 ,090 7,380 177,820265,850 12,830 42,080 14,172 Feb. 26”............ 462,130317,910 63,12081,10072,380 551,360 468,570 19,570 1,020 5,690 175,740266,550 13,010 42,450 14,172 Mar. 26p............ 463,960319,920 62,16081,88072,900553,970468,350 19,920 1,000 4,120 175,860267,450 14,36042,640 14,172 Commercial banks: 1941—Dec. 31.....5.0,746 21,714 21,808 7,22526,551 79,104 71,283 10.982 44,349 15,952 23 7,173 14,278 1945—bec. 31.............. 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14.065 105,921 30,241 219 8,950 14,011 1947—Dec. 316............ 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 535,360 65 10,059 14,181 1967—Dec. 30.............. 359,903 235,954 62,473 61,47777,928451,012395,00821,883 1,314 5,234184,066 182,511 5,777 34,384 13,722 1968—Mar. 27............ 357,910 233,570 61,20063,140 63,950 434,870374,490 16,710 1,280 5,320 163,100 188,080 8,15034,600 13,716 Apr. 24.............. 361,660 237,990 59,84063,830 63,870 438,550377,080 17,340 1,230 4,040 166,550 187,920 8,93034,810 13,714 May 29.............. 363,110 239,300 60,32063,490 65,100 441,150377',460 17,340 1,100 5,060 165,180 188,780 9,70035,110 13,720 June 29............. 367,560 244,580 58,60464,376 75,334 456,827394,004 20,638 1,094 4,970 177,837 189.465 8,131 35,774 13,723 July 31............. 373,480 248,370 60 5 30 64,58069,610456,670391,330 19,170 1,310 5,800 172,610 192,44010,15035,740 13,717 Aug. 28............. 375,550 248,050 61,480 66,020 67,020455,820 388,280 18,020 1,350 4,970 168,720 195,22011,13035,850 13,714 Sept. 25 p............ 381,840 251,680 62,540 67,62069,640465,040 395,960 19,250 1,410 8,540 170,320 196,44011,66036,090 13,707 Oct. 30p............ 386,950253,360 64,760 68,83071,360472,170 402,660 19,690 1 ,330 6,070 175,630 199,94011,660 36,400 13,703 Nov. 27p............ 388,930256,640 62,83069,460 76,220479,090 407,29020,500 1,260 3,250 180,800 201,48013,020 36,500 13,687 Dec. 31p............ 399',700264,480 64,64070,58082,690497,850431 ',82024,530 1,230 5,020 198,530202,510 8,87036,750 13,679 1969—jan, 29p............ 393,510 260,560 62,80070,150 71,810 479,540 406,580 19,370 1 ,090 7,380 177,720201,020 12,83036,790 13,673 Feb. 26p............ 392,160 262,550 59,13070,480 71,490 479,230 403,280 19,570 1 ,020 5,690 175,640201,36013,01037,100 13,673 Mar. 26?............ 393,570 264,380 58,18071,01072,010481,390402,43019,920 1 ,000 4,120 175,760201,630 14,36037,280 13^73 Member tanks: 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 1967—pec. 30. ............ 293,120 196,849 46 95649,315 68,946373,584326,033 20,811 1 ,169 4,631 151,980 147,442 5,37028,098 6,071 1968—Mar. 27.............. 290,527 194,303 45,510 50,714 56,437 358,402 306,703 15,917 1,129 4,707 133,587 151,363 7,655 28,250 6,049 Apr. 24. ............ 293,281 197,820 44,285 51,17656,320361,004308,156 16,534 1 ,083 3,438 136,258 150,843 8,584 28,424 6,046 May 29. ....... 294,364 198,874 44,733 50,75757,415 363,139 308,378 16,574 '955 4,282 135,242 151,325 9,073 28,706 6,041 June 29........... 297,630203,016 43,361 51,253 67,130 376,904 322,990 19,644 934 4,126146,470 151 ,816 7,68429,139 6,039 July 31.............. 303,009206,378 45,05751,57461,854 376,785 320,310 18,229 1,146 4,988 141 ,559 154,388 9,763 29,160 6,026 Aug. 28.............. 304,669205,850 45,89852,921 59,497 375,766 317,18617,088 1,193 4,181 138,031 156,693 10,684 29,240 6,019 Sept 25?............ 309,985208,917 46,75554,31361,846 383,685 323,730 18,275 1,246 7,468 139,166 157,575 11,192 29,415 6,010 Oct. 30p............ 314,164210,270 48,70455,19063,275 389,598 329,287 18,673 1,169 5,226 143,684 160,535 11,153 29,687 6,002 Nov. 27p............ 315,615213,092 46,82055,703 67,675 395,535 333,14219,462 1 ,098 2,545 148,083 161,95412,45029,739 5,990 Dec. 31 ?, .......... 324', 964220,188 48,18456’59273,305 411^899354,92823,320 1 ,069 4,416 163,543 162,580 8,45429,976 5,978 1969—Jan. 29 p............ 319,249216,806 46,464 55,97963,826395,585 332,284 18,402 927 6,556145,546 160,853 12,000 29,966 5,972 Feb. 26?............ 317'925218’407 43 ,387 56,131 63,247 394,742 329,130 18,593 860 4,907 144,065 160,705 12,179 30,190 5,967 Mar. 26”............ 318,742219,595 42,70956,43863,749396,209327,685 18,950 842 3^374 143,989 160,530 13,63630,342 5,967 Mutual savings banks: 1941—Dec. 31...... 10,379 4,901 3,704 1,774 793 11,804 10,533 10,527 1,241 548 1945—Dec. 31.............. 16,208 4’279 10,682 1,246 609 17,020 15,385 11 15,371 7 1,592 542 1947—Dec. 316............ 18,641 4,944 11,978 1 J18 886 19,714 17,763 1 3 14 17,745 1,889 533 1967—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—.Mar. 27............. 65,960 52,380 4,410 9,170 910 68 070 61 800 80 61.720 5,070 502 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 62^50 5,110 501 June 29........ 66,855 53 ,097 4,205 9,553 959 69 029 62’870 i 7 93 62,769 65 5,111 501 July 31. . 67,280 53,250 4,210 9^820 930 6^430 62,810 80 62,730 5,110 502 Aug, 28.............. 67,770 53,590 4,200 9,980 910 69,900 63,050 80 62,970 5,180 502 Sept 25.............. 67,960 53,790 4,140 10,030 990 70,200 63,580 100 63,480 5,190 502 Oct. 30 ............ 68,180 54,070 4,000 10,110 910 70,310 63,750 100 63,650 5,190 502 Nov. 27............. 68^590 54,480 3,910 10,200 910 70,770 64,000 100 63,900 5,260 500 Dec 31 .. . 68,850 54,660 3,840 10,350 1 ,010 71,130 64,690 100 64,590 5,270 500 1969—Jan. 29... 69,420 54,970 3,960 10,490 850 71,530 64,930 100 64,830 5,290 499 Feb. 26r 69,970 55,360 3,990 10,620 890 72,130 65,290 100 65,190 5,350 499 Mar. 26p............ 70 ,’3 90 55,540 3,98010,870 890 72,580 65,920 100 65,820 5,360 499 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 □ APRIL 1969 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits assets— Securities Total Interbank 3 Other Cla a s n s d o d f a b te ank Total Lo i a , n 2 s 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 u l p i n i c a n t i d i ­ t ­ t e a s s l TotaP 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 o a a o p u c t i n ­ a t t a l s b N a b o u n e f k m r 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 1967—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—Mar. 27. 49,973 37,334 5,151 7,488 14,275 67,903 52,675 5,484 630 1,258 25,667 19,636 2,283 5,740 12 Apr. 24. 50,150 37,842 4,734 7,574 13,961 67,654 52,036 5,696 598 575 26,089 19,078 2,809 5,766 12 May 29. 50,800 38,737 5,169 6,894 14,573 68,783 52,747 6,135 530 749 26,506 18,827 2,586 5,944 12 June 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 7,036 16,643 73,553 56,095 6,763 606 1,132 28,299 19,295 3,453 6,081 12 Aug. 28 53,187 39,806 5,855 7,526 16,347 72,977 54,043 5,971 673 720 27,137 19,542 4,108 6,088 12 Sept. 25, 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 Oct. 30. 54,882 40,488 6,607 7,787 16,975 75,530 56,825 6,757 660 1,042 28,207 20,159 3,438 6,180 12 Nov, 27 55,084 41,429 5,881 7,774 18,243 77,069 57,653 7,363 633 170 28,675 20,812 3,914 6,129 12 Dec. 31 . 57,201 43,114 5,978 8,109 19,935 81,610 63,923 9,022 608 887 33,31820,088 2,733 6,202 12 1969—'Jan. 29 55,692 42,544 5,560 7,588 18,452 78,065 58,225 7,401 501 1,873 29,314 19,136 3,278 6,119 12 Feb. 26, 54,596 42,652 4,495 7,449 17,659 76,545 56,323 7,123 469 924 29,340 18,467 3,299 6,156 12 Mar. 26 53,942 41,875 4,574 7,493 18,680 76,776 55,046 7,588 442 356 28,746 17,914 4,010 6,153 12 City of Chicago: 7.8 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 1967—Dec. 30.. , 12,744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 '"383 1,346 10 1968—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 5,600 811 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 11 181 5,326 6,019 1 ,218 1,395 9 Oct. 30, 13,579 9,356 2,222 2,001 3,403 17,666 13,118 1,260 12 253 5,456 6,137 1,134 1,412 9 Nov. 27 13,658 9,573 1,990 2,095 3,218 17,571 13,311 1,287 10 58 5,676 6,280 953 1,416 9 Dec. 31 , 14,280 10,292 1,859 2,129 3,007 18,110 14,528 1 ,535 13 257 6,543 6,180 682 1,438 9 1969—Jan. 29. 13,935 10,189 1,647 2,099 2,932 17,589 13,376 1,165 18 569 5,722 5,902 885 1,424 9 Feb. 26. 13,802 10,030 1,558 2,214 3,128 17,685 13,144 1,246 17 238 5,826 5,817 1,130 1 ,431 9 Mar. 26 14,146 10,313 1,634 2,199 2,768 17,696 12,789 1,267 17 92 5,775 5,638 1,418 1,435 9 Other reserve city; 1941—Dec. 31. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1967—Dec. 30. 105,724 73,571 14,667 17,48726,867 136,626 120,485 9,374 310 1,715 53,28855,798 2,555 10,032 163 1968—Mar. 27, 105,064 73,232 13,790 18,042 21 ,820 1.30,999 113,620 7,247 393 1,679 46,687 57,614 3,523 10,087 164 Apr. 24. 106,175 74,648 13,383 18,14422,147 132,442 114,208 7,577 380 1,412 47,40957,430 4,245 10,152 163 May 29. 106,505 74,697 13,496 18,312 21,950 132,720 113,758 7,311 321 1,587 46,851 57,688 4,407 10,223 163 June 29, 107,654 76,213 13,083 18,358 24,528 136,603 118,123 8,131 300 1,400 50,394 57,898 3,720 10,351 163 July 31, 109,510 77,553 13,468 18,489 23,601 137,652 118,508 8,065 437 1,881 49,185 58,940 4,267 10,407 162 Aug. 28. 110,559 77,479 13,97219,108 22,161 136,984 117,523 7,759 414 1,612 47,72560,013 4,638 10,433 162 Sept. 25 . 112,559 78,661 14,211 19,687 23,382 140,294 119,750 8,054 448 2,798 48,126 60,324 5,437 10,445 162 Oct. 30, 114,861 79,584 15,135 20,142 23,605 142,930 122,205 8,351 395 2,128 49,85461,477 5,554 10,559 162 Nov. 27, 115,027 80,382 14,291 20,354 25,803 145,322 123,321 8,458 353 799 51,832 61,879 6,441 10,572 161 Dec. 31 . 119,133 83,679 14,99420,46027,965 151,836 132,159 10,018 346 1,980 57,23262,583 4,21010,701 161 1969—Jan. 29 116,456 82,141 14,167 20,148 23,463 144,460 122,369 7,651 306 2,348 50,142 61,922 6,179 10,743 161 Feb. 26, 116,211 83,065 13,151 19,995 23,142 143,969 121,555 8,024 272 2,079 49,54961,631 6,085 10,773 161 Mar. 26 116,128 83,534 12,738 19,85623,094 143,928 120,639 7,885 281 1,338 49,751 61,384 6,763 10,878 161 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 It 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 1967—Dec. 30.............. 122,511 74,995 24,689 22,82620,334146,052131,156 2,766 96 1,564 61,161 65,569 55211,005 5,886 1968—Mar. 27. 122,968 74,834 24,823 23,311 17,527 143,526 127,958 2,058 96 1,606 55,922 68,276 996 11,100 5,864 Apr. 24. 124,227 76,289 24,289 23,649 17,606144,949129,505 2,076 96 1,317 57,359 68,657 695 11,169 5,862 May 29. 124,525 76,490 24,338 23,697 17,924145,493 129,448 1,989 96 1,777 56,40669,180 1,254 11,193 5,857 June 29 125,767 78,011 23,469 24,287 19,321 148,588 132,837 2,258 102 1,811 59,183 69,483 870 11,403 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 70,279 772 11,302 5,843 Aug. 28, 127,450 79,184 24,010 24,256 17,956 148,626132,750 2,128 96 1,700 57,685 71,141 891 11,354 5,836 Sept. 25. 129,187 80,230 24,325 24,632 18,610 151 ,135 134,96! 2,222 96 2,291 58,578 71,774 93211,467 5,827 Oct. 30, 130,842 80,842 24,750 25,260 19,292 153,472137,139 2,305 102 1,803 60,167 72,762 1,027 11,536 5,819 Nov. 27. 131,846 81,708 24,658 25,480 20,411 155,573 138,857 2,354 102 1,518 61,900 72,983 1,14211,622 5,808 Dec. 31. 134,350 83,103 25,353 25,894 22,398 160,343 144,318 2,745 102 1,292 66,450 73,729 8291! ,635 5,796 1969—Jan. 29. 133,166 81,932 25,090 26,144 18,979 155,471 138,314 2,185 102 1,766 60,368 73,893 1,658 11,680 5,790 Feb. 26. , 33,316 82,660 24,183 26,473 19,318 156,543 38,108 2,200 102 1,666 59,350 74,790 1,665 11,830 5,785 Mar. 26P, 34,526 83,873 23,763 26,890 19,207 157,809 139,211 2,210 102 1,588 59,717 75,594 1,445 11,876 5,785 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ COMMERCIAL AND MUTUAL SAVINGS BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other b c C a a l l n a l k s d s a a o t n e f d Total Lo 1, a n 2 s G U o .S vt . . 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 c n a t i d i ­ t t ­ e a s s l 4 Total3 m D a e n ­ d Time U. D S. e ma O n t d her Ti 1 m .5 e r B i o n o g w r s ­ ­ c c T o a a o p u c t i n a ­ ta t l s l N ba b o u n e f m k r s ­ Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76.820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 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 5,508 159,659 140,084 4,325 29,82713,540 1966—Dec. 31.. 321,473217,379 55,78848,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,71731,609 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 33,91613,510 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 7,91335,26913,512 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 92,53385,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,75593,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142106,019 107,684 3,47819,730 4,758 1968—June 29.. 212,344143,802 31,62736,915 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 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,46436,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1 ,892 8,368 1,313 1968—June 29.. 86,231 60,159 11,73414,338 22,342 112,352 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 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,52825,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,14611,629 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 1,872 329 1 291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1 905 365 4 279 714 1947—Dec. 31 6. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1965—Dec. 31.. 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1966—Dec. 31.. 2,400 1,570 367 463 604 3,171 2,073 274 86 17 1,062 633 142 434 233 1967—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 it 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173 560 29,53230,258 241 5,776 7,617 1967—Dec. 30.. 67,087 39,409 15,51612,162 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 31,36737,939 447 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 a APRIL 1969 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 l a * n 2 s G U o . v S t . . Oth 2 er as C s a e s ts h 3 c c b o a i a u a l l p i n i n c a t i d ­ i t t ­ s e a s l 4 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 b N b a u e n f m r ks - 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 i 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 2 12 12,192 .....1..,.2..52 194 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 4,140 330 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. 316 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 1 706 177 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 1 749 170 1968—June 29.. 8,677 6,283 1,166 1,228 126 8,901 7,879 41 7,838 762 170 1 See table “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, Ioans 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 included Note.-—Data are for all commercial and mutual savings banks in the in “Federal funds sold, etc.,” 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 3 Figures for mutual savings banks include relatively small amounts Bulletin. of demand deposits. Beginning with June 1961, also include 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, sec 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

APRIL 1969 □ COMMERCIAL BANKS A 23 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total', 2 Loans1,2 Total', 2 Loans1,2 G U o . v S t . . Other2 G U o .S vt . . Other2 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—Dec. 31................................................................ 267.2 167.7 60.7 38.7 273.9 172,1 63.0 38.8 1965__Dec. 31................................................................ 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 196^—Dec. 31................................................................ 310.5 208.2 53.6 48,7 317.9 213,0 56 2 48.8 1967—Dec 30................................................................ 346.5 225.4 59.7 61.4 354.5 230.5 62 5 61.5 1968 Mar. 27................................................................ 352.5 229.0 59.9 63.6 351.5 227.2 61 2 63.1 Apr. 24........ ............ 355.2 231.4 60.3 63.4 354,7 231.0 59 8 63.8 May 29............................................................... 357.3 232.6 61.0 63.6 355.4 231.6 60.3 63.5 June 29.............................................................. 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 Aug. 28................................................................ 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 Oct. 30................................................................ 379.6 246,9 64.2 68.5 379.5 245.9 64.8 68.8 Nov. 27............................................................... 381.6 250.4 61.0 70,2 381.1 248.8 62.8 69.5 Dec. 31................................................................ 384.5 252.3 61 .7 70,5 393.3 258.1 64.6 70.6 1969—Jan 29 ^.............................................................. 385.3 253.8 60.4 71,0 384,4 251.5 62.8 70.2 Feb. 26^.............................................................. 386.7 257.9 57.8 71 .0 382.9 253.3 59.1 70.5 Mar. 26”....................................................... 385.9 257.3 57.1 71.5 384.7 255.5 58.2 71 .0 i Adjusted to exclude interbank loans. 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 AH 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 loans). Details may not add to totals because of rounding; also, mutual savings These changes resulted from a change in the Federal Reserve regulations. banks held $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 □ APRIL 1969 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments Total Fed­ o p r u r c c F a h r o a r r y s i i n n g g fina T n o c ial U.S s . e G cu o r v it e ie rn s m 6 ent b C a l n a k s s a o nd f lo a a n n d s 1 fu er n a d l s C m o e m r­ ­ Agri- securities institutions Real Ot t h o e r S a t n a d te Other call date invest­ sold, Total cial cul- es­ in­ Othei local secu­ ments etc.2 3.4 and tur- To tate di­ 3 govt, rities5 in­ al 5 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o er s Banks Others uals3 Total ce a r n t d if i­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,034 53,205 5,2763,729 1965—Dec. 31.. 306,060 2,103199,55571,437 8,212 5,258 3,231 2,158 13,291 49,30045,4685,21559,547 n.a n.a. n.a. 38,6556,201 1966—Dec. 31.. 323,885 2,54^216,405 80,598 8,555 5,821 3,203 2,189 13,30253,95047,943 5,18356,16: n.a. n.a. n.a.41,003 7,769 1967—Dec. 30.. 361,186 4,057233,18088,443 9,2706,215 3,78C 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 91,4279,9794,950 3,731 1,94412,193 61,40954,221 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,J 05 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,3143,1643,606 49 4,677 2,361 1,13288,91221,526 16,04551,342 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1965—Dec. 31.. 303,593 2,064198,04570,8878,191 5,088 3,172 2,093 13,14849,02645,290 5,15559,12013,13413,233 33,85838,4195,945 1966—Dec. 31.. 321,473 2,461214,91880,0608,5365,6433,148 2,131 13,14853,68647,770 5,12755,788 12,080 13,43931,53640,761 7,545 1967—Dec. 30.. 358,536 3,919231,583 87,8709,2506,0173,719 1,848 12,39458,209 51,395 5,60662,094 13,13418,62431,62349,737 11,204 1968—June 29.. 365,955 4,655239,33890,8739,958 4,723 3,668 1,881 12,02961,11254,020 5,89358,189 7,00322,49929,95652,355 11,417 Member, total: 1941—Dec. 31.. 43,521 .......... 18,021 8,671 972 594 598 39 .......... 3,494 3.453 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,05778,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1965—Dec. 31.. 251,577 1,861 167,93963,979 5,0994,915 2,714 2,008 12,475 38,98836,418 4,83244,992 9,441 10,10626,36732,5884,198 1966—Dec. 31.. 264,627 2,119181,62472,553 5,318 5,3892,660 2,047 12,34942,38437,925 4,75741,924 8,567 9,789 24,60933,8005,160 1967—Dec. 30.. 294,098 3,438194,38979,3445,702 5,8203,099 1,754 11,58745,52840,4545,19046,956 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 4,415 16,29423,621 43,3827,871 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 5:2 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 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 17 3,109 598 1,025 3,265 3,465 2,799 1,209 4,920 1,871 942 2,286 4,967 708 1967—Dec. 30.. 52,141 415 38,64423,183 13 3,874 831 914 2,990 3,431 3,099 1,285 6,027 1,897 1,962 2,303 6,318 737 1968—June 29.. 51,361 556 38,98824,042 192,976 796 1,015 3,118 3,495 3,197 1,309 5,046 847 1,860 2,555 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 1,762 413 508 899 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 64,64624,7841,206 9541,108 635 5,820 15,05614,305 1,99914,354 2,972 3,281 8,43211,5041,022 1966—Dec. 31.. 96,201 817 69,01728,090 1,251 1,0841,079 684 5,748 16,04414,375 1,96813,040 2,552 2,673 8,22212,033 1,294 1967—Dec. 30.. 106,086 1,219 72,71330,609 1,311 881 1,143 578 5,44616,969 15,0472,148 14,667 3,140 3,557 8,31215,3762,110 1968—June 29.. 108,001 1,422 75,13831,720 1,414 758 1,206 513 5,19617,861 15,6252,30413,083 966 4,329 8,10516,1772,180 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 17,9383,986 790 761 157 2,175 22,253 20,000 1,30722,419 3,791 5,917 13,096 15,473 2,985 1967—Dec. 30.. 123,127 1,538 74,074 19,8394,332 607 906 100 2,20024,453 21,554 1,51624,689 4,168 7,793 13,147 18,338 4,488 1968—June 29.. 126,365 1,871 76,738 20,363 4,610 436 835 77 1,899 25,647 22,721 1,61423,469 2,188 9,597 12,06219,607 4,680 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. 6,067 2,003 1966—Dec. 31.. 59,257 425 34,781 8,045 3,237 431 543 142 953 11,566 10,018 427 4,239 n.a. n.a. n.a. 7,203 2,609 1967—Dec. 30.. 67,087 618 38,791 9,099 3,568 395 681 148 948 12,997 11,131 469 5,516 n.a. n.a. n.a. 8,486|3,676 1968—June 29.. 70,219 772 41,081 9,506 3,898 425 674 166 935 13,712 11,929 512 5,242 n.a. n.a. n.a. 9,252 3,871 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (he., before deduction of valuation reserves); they do not available before 1947; summary figures for earlier dates appear in the add to the total and are not entirely comparable with prior figures. Total preceding table. loans continue to be shown net. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed 2 Includes securities purchased under resale agreements. Prior to June by CCC were reclassified as “Other securities,” and Export-Import Bank 30, 1967, they were in loans —for the most part in loans to banks. Prior portfolio fund participations were reclassified from loans to “Other se­ to Dec. 1965, Federal funds sold were included with total loans and loans curities.” This increased “Other securities” by about $1 billion. to banks. < 5 Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes) entitled Deposits Accumulated at Commercial at book value; they do not add to the total (shown at book value) and are Banks for Payment of Personal Loans, p. A-23. not entirely comparable with prior figures. For other notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal­ De­ b c C a a l n l a l k s d s a a o n te f d s B F w e R a r . i n v R e th k e ­ . s s r C c e a o n n u i c d r n y ­ b m a w a d n e n c i o s t k e t h ­ i s s c 7 ju m po s d a a t d e s e n i - ­ d t d s 8 m D e I s n o t t ­ i e c r 7 ba e F n ig k o n r­ ? G U o .S vt . . S g l a o o t n c a v a d t t e l . c C c h o f a e e e i e f n t e r c r f c s d d i t . * k ­ i ­ s. IPC I b n a t n e k r­ G P S U i a o n o a n . g s v v S d t s - t a . , l S g l a o o t n c a v d a t t e l . IPC3 r B i o n o w g r s - ­ c C o a t a u a c p l n ­ i t ­ s Total:’ 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 13,462 146,329 4,85932,054 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 15,494 147,296 18,632 2,005 4,971 16,284 10,123 151,430 1,094 321 16,522173,857 8,13035,774 All insured: 1941—Dec. 3t.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31. ... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1965—Dec. 31... . 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,32529,827 1966—Dec. 31.... 19,069 5,426 15,348 140,835 17,713 1,784 4,975 14,951 6,956 144,782 881 238 13,414145,7444,71731,609 1967—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 15,836166,9565,53133,916 1968—June 29.... 20,846 5,170 14,936145,782 18,468 1,869 4,951 16,198 9,890 150,482 1,019 321 16,456173,1487,91335,269 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 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1965—Dec. 31.... 17,992 3,757 8,957112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 236 10,041 109,9254,23424,926 1966—Dec. 31.... 19,069 4,249 9,400 112,920 17,051 1,736 4,432 11,406 6,396 120,417 794 213 10,983 118,5764,61826,278 1967—Dec. 30.,.. 20,275 4,646 10,550 121,530 18,951 1,861 4,631 11,857 7,940 132,184 1,169 235 12,856135,329 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.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1965—Dec. 31... . 3,788 310 122 18,190 4,191 1,034 1,271 620 2,937 20,708 522 84 807 17,097 1,987 5,114 1966—Dec. 31.... 4,062 326 201 18,013 5,105 1,265 1,016 608 3,814 22,113 467 83 918 16,447 1,874 5,298 1967—Dec. 30.... 4,786 397 476 20.004 5,900 1,337 1 ,084 890 4,748 25,644 741 70 1,152 18.8401,880 5,715 1968—June 29.... 5,013 305 558 18,223 6,709 1,326 824 1,203 6,043 23,879 513 89 1,250 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 2 602 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 1965—Dec. 31.... 7,700 1,139 2,341 37,703 8,091 330 1,773 3,532 1,180 42,380 206 71 4,960 40,510 1,548 9,007 1966—Dec. 31.... 8,353 1,326 2,517 37,572 8,249 343 1,633 3,708 1,274 44,022 233 57 5,450 44,204 1,952 9,472 1967—Dec. 30.... 8,618 1,452 2,805 39,957 8,985 390 1,715 3,542 1,580 48,165 310 80 5,830 50,2502,55510,033 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—Dee. 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 1 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 8 Through 1960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and ’ For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 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 □ APRIL 1969 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans 2 For purchasing or carrying securities To financial institutions Loans1 Total net of loans valua­ Com­ To brokers Wednesday and tion mer­ and dealers To others Banks Nonbank Con­ Valu­ invest­ re­ cial Agri­ Real sumer For­ All ationments 1 serves and cul­ estate instal­ eign other re­ indus­ tural U.S. U.S. Do­ Pers, ment govts. serves trial Govt, Other Govt, Other mes­ and se­ se­ se­ se­ For­ tic sales curi­ curi­ curi­ curi­ eign com­ finan. Other ties- ties- ties- ties- mer­ cos., cial etc. Large banks— Total 1968 Mar. 6.......... 206,224 143,541 65,154 1 ,893 1 ,298 3,776 87 2,444 1,357 2,840 5,104 4,162 29,230 16,376 1,051 11,975 3,206 13.......... 206,279 143,539 65,271 1 ,899 1 ,237 3,590 83 2,408 1 ,348 2,845 5,260 4,176 29,288 16,408 1 ,068 11,863 3,205 20.......... 207,989 145,504 66,289 1 ,910 901 3,549 96 2,391 1,368 3,799 5,368 4,219 29,338 16,430 1,113 11,937 3,204 27.......... 206,513 144,609 66,393 1 ,920 840 3,465 97 2,374 1 ,386 3,064 5,136 4,263 29,384 16,471 1 ,059 11 ,962 3,205 1969 Feb. 5.......... 227,827 162,370 73,111 2,005 982 3,917 98 2,753 1 ,458 4,891 5,669 5,009 32,245 18,709 975 14,042 3,494 12.......... 228,998 163,930 73,364 2,015 778 4,128 120 2,751 1 ,590 5,581 5,859 5,063 32,296 18,728 1,002 14,149 3,494 19.......... 225,735 162,119 73,590 1 ,959 397 3,708 101 2,787 1 ,587 4,892 5,558 5,019 32,423 18,705 t,010 13,877 3,494 26.......... 226,394163,201 73,727 1 ,953 584 3,750 99 2,801 1 ,600 5,625 5,391 5,144 32,472 18,725 1 ,007 13,817 3,494 Mar. 5.......... 227,976 164,245 74,204 1 ,954 760 3,883 102 2,802 1,605 5,625 5,551 5,136 32,451 18,708 994 13,968 3,498 12.......... 226,453 163,143 74,520 1 ,956 594 3,533 105 2,784 1 ,675 4,795 5,426 5,136 32,505 18,746 996 13,872 3,500 19*........ 227,124 164,104 75,074 1 ,961 644 3,449 139 2,790 1 ,657 5,077 5,416 5,175 32,563 18,731 996 13,932 3,500 26”........ 226,418 163,488 75,047 1 ,963 571 3,126 108 2,781 1 ,642 5 ,143 5,304 5,053 32,592 18,774 1 ,032 13,849 3,497 New York City 1968 Mar. 6.......... 46,498 34,923 21,597 21 505 2,357 17 760 661 563 1,435 1,052 2,942 1 ,243 728 1 ,982 940 18.......... 46,712 34,991 21 ,555 21 552 2,129 12 750 647 785 1 ,522 1 ,050 2,954 1 ,249 745 1 ,961 941 20.......... 47,829 36,302 22,030 21 413 2,111 12 746 671 1 ,604 1,568 1,100 2,965 1,251 781 1,970 941 27.......... 47,037 35,453 22,191 20 506 2,010 12 741 681 792 1 ,388 1 ,124 2,959 I ,250 735 1,985 941 1969 Feb. 5.......... 51,874 39,754 24,092 16 671 2,177 10 861 710 1 ,351 1,679 1,296 3,232 1,449 620 2,637 1,047 12.......... 52,865 40,949 24,117 16 581 2,408 32 855 827 1,922 1,848 1 ,305 3,224 1,449 646 2,766 1 ,047 19.......... 51,139 39,961 24,124 16 282 2,055 10 864 801 1 ,924 1 ,670 1 ,290 3,255 1 ,447 652 2,618 1 ,047 26.......... 51,359 40,372 24,157 16 441 2,132 10 872 808 2,096 1 ,628 1,324 3,248 1 ,448 644 2,595 1,047 Mar. 5.......... 52,227 40,863 24,410 16 496 2,231 12 864 807 2,045 1 ,733 1,342 3,267 1 ,445 641 2,602 1,048 12.......... 51,261 40,191 24,576 16 492 2,003 1 2 849 850 1 ,539 1 ,659 1 ,338 3,276 1 ,449 639 2,542 I ,049 19* 51 ,554 40,423 24,582 16 511 2,037 45 845 830 1 ,672 I ,642 1 ,348 3,287 1 ,450 635 2,571 1 ,048 26*........ 50,645 39,550 24,494 15 383 1 ,794 14 843 803 1 ,394 1 ,606 1 ,278 3,266 1 ,456 668 2,581 1 ,045 Outside New York City 1968 Mar. 6.......... 159,726 108,618 43,557 1 ,872 793 1 ,419 70 1 ,684 696 2,277 3,669 3,110 26,288 15,133 323 9,993 2,266 18.......... 159,567 108,548 43,716 I ,878 685 1 ,461 71 1 ,658 701 2,060 3,738 3,126 26,334 15,159 323 9,902 2,264 20.......... 160,160 109,202 44,259 1 ,889 488 1 ,438 84 1 ,645 697 2,195 3,800 3,119 26,373 15,179 332 9,967 2,263 27.......... 159,476 109,156 44,202 1 ,900 334 1,455 85 1 ,633 705 2,272 3,748 3,139 26,425 15,221 324 9,977 2,264 1969 Feb. 5.......... 175,953 122,616 49,019 1,989 311 1,740 88 1,892 748 3,540 3,990 3,713 29,013 17,260 355 11,405 2,447 12.......... 176,133 122,981 49,247 1 ,999 197 1,720 88 1 ,896 763 3,659 4,011 3,758 29,072 17,279 356 11,383 2,447 19.......... 174,596 122,158 49,466 1,943 115 1 ,653 91 1,923 786 2,968 3,888 3,729 29,168 17,258 358 11,259 2,447 26.......... 175,035 122,829 49,570 1,937 143 1 ,618 89 1,929 792 3,529 3,763 3,820 29,224 17,277 363 11,222 2,447 Mar. 5.......... 175,749 123,382 49,794 I ,938 264 1,652 90 1,938 798 3,580 3,818 3,794 29,184 17,263 353 II,366 2,450 12.......... 175,192 22,952 49,944 1 ,940 102 1 ,530 93 1 ,935 825 3,256 3,767 3,798 29,229 17,297 357 11 ,330 2,451 19* 175,570 123,681 50,492 1 ,945 133 1 ,412 94 1,945 827 3,405 3,774 3,827 29,276 17,281 361 11,361 2,452 26*........ 175,773 123,938 50,553 1 ,948 188 1 ,332 94 1,938 839 3,749 3,698 3,775 29,326 17,318 364 11,268 2,452 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 subdivisions securities Total process and with Total Bills tifi­ of coin F.R. cates collec­ Do­ For­ Banks Certif. tion mestic eign With­ 1 to After Tax AH of Other banks banks in 5 yrs. 5 yrs. war­ other partici­ secu­ 1 yr. rants 3 pation4 rities Large banks—• Total (968 28 169 4,357 4,006 14,467 5,339 4,436 25,761 1,412 2,905 46,340 22,575 4,296 220 2,568 16,681 9,263 28 155 4’368 4,012 14,366 5,409 4,382 25,832 1,425 2,946 45,503 22,248 4,319 (99 2,811 15,926 9,236 .....................13 27 596 3,909 4,076 14,216 5,395 4,515 26,050 1,420 2,904 44,430 21,448 4,223 213 2,756 15,790 9,234 ....................20 27^065 3 737 4,071 14,143 5,414 4,609 26,014 1 ,342 2,874 44,525 20,975 3,981 204 2,885 16,480 9,599 ....................27 1969 27,332 3,747 5,149 12,029 6,407 4,832 28,940 1 ,421 2,932 53,150 28,276 4,675 247 2,743 17,209 10,889 ...........Feb. 5 26797 3 732 5,157 12,010 6,398 4,784 29,247 1 ,385 2,855 52,490 27,562 4,607 274 2,959 17,088 10,870 ....................12 25,416 2’485 4,757 12>42 5,732 4,705 29,207 1 ,403 2,885 53,196 28,738 4,706 254 2,933 16,565 10,773 .....................19 25,146 2'295 4799 12,361 5,691 4,637 29,096 1 ,412 2,902 50,049 26,124 4,313 263 3,035 16,314 10,911 ....................26 25,472 2,656 4,877 12,298 5,641 4,843 29,174 1 ,372 2,870 53,245 29,072 4,622 259 2,665 16,627 (1,068 ...........Mar. 5 25’105 2,397 4,861 12,273 5,574 4,793 29,214 I ,359 2,839 52,331 28,196 4,402 232 2,911 16,590 10,947 .....................12 24725 2’259 5,010 12,092 5,564 4,796 29,(12 1 ,347 2,840 52,494 28,206 4,628 240 2,904 16,516 10,942 ..................»19 24'811 2,219 5,127 11,967 5,496 4,866 29,055 1,337 2,861 50,495 26,276 4,305 254 2,97416,68610,940 ...................7’26 New York City 1968 4,905 932 659 2,142 1,172 1 ,663 4,281 65 661 14,790 9,507 280 117 377 4,509 3,290 ......... Mar. 6 4 979 994 672 2,089 1 724 1 ,705 4,309 63 665 13,767 8,778 270 103 396 4,220 3,342 .....................18 4,668 707 679 2,044 1 ,238 1 ,773 4,366 60 660 12,764 8,274 273 (15 380 3,722 3,271 ....................20 4,678 735 646 2,049 1,248 I ,869 4,320 44 673 13,898 8,706 298 103 381 4,410 3,530 ....................27 1969 5,139 1,278 651 I ,831 1 ,379 1 ,473 4,663 121 724 18,309 12,977 398 122 377 4,435 4,051 ...........Feb. 5 4,861 1'000 658 1 ,818 1 ,385 1,389 4,832 115 719 17,909 12,942 275 151 356 4,185 4,089 .....................12 4,238 517 583 1 ,961 1 177 1,391 4,728 114 707 18,477 13,529 455 (29 375 3,989 4,114 ....................19 4786 402 581 1 ,941 1,162 1,371 4,724 113 693 17,300 12,541 307 134 379 3,939 4,165 ....................26 4,277 611 614 1 ,903 1,149 1 ,512 4,746 108 721 17,858 13,125 356 130 361 3,886 4,162 ...........Mar. 5 4761 459 601 I ,851 1,150 1 ,459 4,744 99 707 18,365 13,312 350 112 370 4,221 4,130 ....................12 4,091 471 668 1 713 1 ;t39 1 ,558 4,686 98 698 18,040 13,258 375 112 362 3,933 4,113 ..................7’19 4^151 516 689 1 ,809 1337 1 ,511 4,631 104 698 18,303 12,830 293 126 364 4,690 4,023 ...................7’26 Outside New York City 1968 23,264 3,425 3,347 12,325 4,167 2,773 21,480 1 ,347 2,244 31,550 13,068 4,016 103 2,191 12,172 5,973 23,176 3'374 3,340 12777 4'185 2,677 21,523 1 ,362 2,281 31,736 13,470 4,049 96 2,415 11,706 5,894 ....................18 22’928 3,202 3'397 12,172 4,157 2,742 21,684 1 ,360 2,244 31,666 13,174 3,950 98 2,376 12,068 5,963 ....................20 22^387 2'702 3 325 12,094 4; 166 2,740 21,694 1,298 2,201 30,627 12,269 3,683 101 2,504 12,070 6,069 ....................27 1969 22,193 2,469 4,498 10,198 5,028 3,359 24,277 1 ,300 2,208 34,841 15,299 4,277 125 2,366 12,774 6,838 ...........Feb. 5 21'936 2,232 4'499 10J92 5'013 3,395 24,415 1 ,270 2,136 34,581 14,620 4,332 123 2,603 12,903 6,781 .....................12 21 ’178 1,968 4,174 10'481 4,555 3,314 24,479 1,289 2,178 34,719 15,209 4,251 125 2,558 12,576 6,659 .....................19 21’060 1,893 4'218 10,420 4'529 3,266 24,372 1,299 2,209 32,749 13,583 4,006 129 2,65612,375 6,746 ....................26 21,195 2,045 4,263 10,395 4,492 3,331 24,428 1,264 2,149 35,387 15,947 4,266 129 2,304 12,741 6,906 21,044 1'938 4 760 10'422 4,424 3,334 24,470 1,260 2,132 33,966 14,884 4,052 120 2,541 12,369 6,817 .....................12 20'834 1 '788 4,342 10779 4,425 3,238 24,426 1,249 2,142 34,454 14,948 4,253 128 2,54212,583 6,829 ..................7’19 20,660 1,703 .......... 4,438 10,158 4',359 3,355 24,424 1,233 2,163 32,192 13,446 4,012 128 2,610 11,996 6,9(7 ..................n26 For notes see p. A-29 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ APRIL 1969 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time Total Wednesday unad­ States Do­ Foreign IPC States Foreign justed and mes­ and Do­ polit­ U.S. tic polit­ mes­ Totals IPC ical Govt. com­ Com­ Total’ ical tic Com­ sub­ mer­ Govt., mer­ Sav­ Other sub- inter­ Govt., mer­ divi­ cial etc.6 cial ings divi­ bank etc. cial sions banks banks sions banks Large banks—• Total 1968 Mar. 6.................... 221,336116,275 82,289 5,779 4,372 14,304 693 1,649 105,061 48,741 39,862 10,016 841 5,074 301 13................... 220,986115,634 84,832 5,362 3,339 13,745 736 1,598 105,352 48,822 39,908 10,186 83-1 5,069 305 20................... 221,267 116,379 83,860 5,503 5,504 13,380 795 1,653 104,888 48,912 39,600 10,091 805 4,973 282 27................... 218,995 113,862 83,176 6,074 3,700 12,530 739 1,628 105,133 49,104 39,693 10,111 780 4,935 288 1969 Feb. 5................... 238,794129,101 90,077 6,708 5,410 15,900 675 1 ,859 109,693 48,318 44,314 11,311 579 4,656 242 12................... 237,959 128,447 90,897 6,441 4,426 15,847 677 1 ,963 109,512 48,307 44,311 11,191 571 4,622 243 19................... 236,840 127,542 89,457 6,413 5,160 15,653 689 1 ,910 109,298 48,317 44,161 11,041 592 4,663 240 26................... 233,958 124,747 89,131 6,272 3,882 14,915 625 1 ,829 109,211 48,335 44,201 11,025 555 4,592 238 Mar 5.................... 236,726 127,747 90,577 6,307 3,284 16,485 703 1,894 108,979 48,445 43,997 10,925 562 4,549 234 12................... 234,060 125,175 91,724 5,848 1,671 15,409 669 1,884 108,885 48,514 43,907 10,867 563 4,539 234 19"................. 234,427 126,084 90,223 5,750 4,352 15,441 687 1,808 108,343 48,634 43,483 10,691 538 4,509 226 26"................. 231,735 123,327 89,738 6,252 2,328 15,239 661 1 ,817 108,408 48,667 43,468 10,713 544 4,522 231 New York City 1968 Mar. 6.................. 50,616 32,162 19,629 447 1 ,053 4,231 545 1,162 18,454 4,723 8,871 879 541 3,193 163 18................... 49,919 31,379 20,230 339 832 4,166 580 1,106 18,540 4,729 8,890 948 533 3,187 167 20................... 50,442 32,104 20,341 475 1 ,650 4,103 620 1,158 18,338 4,741 8,799 923 504 3,140 145 27................... 49,789 31,390 19,839 577 1,234 3,934 583 1,130 18,399 4,762 8,875 907 482 3,142 148 1969 Feb. 5................... 54,868 37,345 21,725 615 1,640 5,639 500 1 ,332 17,523 4,608 8,516 990 335 2,849 145 12................... 54,973 37,522 22,036 570 1 ,348 5,812 521 1 ,397 17,451 4,611 8,470 976 332 2,838 146 19................... 54,339 37,146 21,570 517 1 ,441 5,887 529 1 ,339 17,193 4,621 8,261 871 358 2,859 145 26................... 53,339 36,196 21,820 538 896 5,422 469 1 ,296 17,143 4,626 8,249 866 325 2,857 144 Mar. 5.................... 54,110 37,161 22,024 572 928 5,819 552 1 ,353 16,949 4,627 8,118 832 330 2,825 141 12................... 52,932 36,004 22,281 459 158 5,626 516 1 ,317 16,928 4,639 8,073 848 330 2,823 142 19"................. 53,147 36,570 22,022 497 1 ,077 5,644 541 1,250 16,577 4,652 7,798 784 308 2,826 135 26"................. 52,126 35,547 21,986 523 347 5,871 501 1 ,274 16,579 4,660 7,785 777 307 2,841 135 Outside New York City 1968 Mar. 6................... 170,720 84,113 62,660 5,332 3,319 10,073 148 487 86,607 44,018 30,991 9,137 300 1,881 138 18................... 171,067 84,255 64,602 5.023 2,507 9,579 156 492 86,812 44,093 31,018 9,238 301 1 ,882 138 20................... 170,825 84,275 63,519 5,028 3,854 9,277 175 495 86,550 44,171 30,801 9,168 301 1 ,833 137 27................... 169,206 82,472 63,337 5,497 2,466 8,596 156 498 86,734 44,342 30,818 9,204 298 1 ,793 140 1969 Feb. 5................... 183,926 91,756 68,352 6,093 3,770 10,261 175 527 92,170 43,710 35,798 10,321 244 1,807 97 12................... 182,986 90,925 68,861 5,871 3,078 10,035 156 566 92,061 43,696 35,841 10,215 239 1 ,784 97 19................... 182,501 90,3^6 67,887 5,896 3,719 9,766 160 571 92,105 43,696 35,900 10,170 234 1,804 95 26............. . . 180,619 88,551 67,311 5,734 2,986 9,493 156 533 92,068 43,709 35,952 10,159 230 1 ,735 94 Mar. 5................... 182,616 90,586 68,553 5,735 2,356 10.666 151 541 92,030 43,818 35,879 10,093 232 1,724 93 12................... 181,128 89,171 69,443 5,389 1 ,513 9,783 153 567 91,957 43,875 35,834 10,019 233 1 ,716 92 19"................. 181,280 89,514 68,201 5,253 3,275 9,797 146 558 91,766 43,982 35,685 9,907 230 1,683 91 26"................. 179,609 87,780 67,752 5,729 1 ,981 9,368 160 543 91,829 44,007 35,683 9,936 237 1,681 96 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Memoranda Total assets— Other Capital Total Total Large certificates Liabili­ liabili­ ac­ liabilities loans of deposit 10 ties of Wednesday ties counts and Total (net) Demand U.S. From From capital Ioans ad­ deposits banks F.R. others accounts (net) justed ad­ to Banks ad­ and in­ justed 5 Total Issued Issued their justed 8 vest­ issued to to foreign ments 8 IPC’s others branches^ Large banks— Total 1968 730 5,986 13,055 20,720 261,827 140,701 203,384 75,024 20,984 13,302 7,682 4,513 ......... Mar. 6 93 5,669 13,584 20,686 261,018 140,694 203'434 76,302 21,020 13,216 7,804 4,805 ..........................13 219 6,565 12,949 20,653 261,653 141,705 204,190 76,047 20,529 13,059 7,470 4,430 ..........................20 1 ,206 6,024 13,764 20,648 260,637 141,545 203,449 76,657 20,538 13,097 7,441 4,920 ..........................27 1969 951 10,923 19,092 22,106 291,866 157,479 222,936 79,515 20,603 13,083 7,520 8,567 .................Feb. 5 885 12,110 19,303 22,101 292,358 158,349 223,417 80,612 20,484 12 975 7,509 8,332 ..........................12 281 10,952 19,586 22,045 289,704 157,227 220,843 77,991 20,126 12,659 7 >67 8,543 ..........................19 260 11,200 19,863 22,073 287,354 157,587 220,780 79,826 19,968 12,592 7,376 8,869 ..........................26 538 12,772 20,023 22,230 292,289 158,620 222,351 78,906 19,592 12,311 7,281 9,172 ................Mar. 5 557 12,250 20,642 22,222 289,731 158,348 221,658 79,897 19,395 12 116 7,279 9,393 ..........................12 630 12,399 20,943 22,161 290,560 159,027 222,047 78,085 18,809 11,629 7,180 9,827 ..........................19p 701 12,296 20,936 22,185 287,853 158,415 221,295 79,484 18,792 11,596 7,196 9,883 ..........................26” New York City 1968 12 1,797 6,622 5,531 64,578 34,360 45,935 17,371 6,589 4,306 2 283 3,619 1 ,291 7,081 5,530 63,821 34,206 45,927 17,603 6,594 4,278 2,316 3,865 ..........................18 10 1 ,510 6 382 5,520 63,864 34,698 46,225 18,077 6,449 4,359 2,090 3,427 ..........................20 168 1,908 7,090 5,510 64,465 34,661 46,245 17,516 6,452 4,403 2,049 3,881 ..........................27 1969 316 2,906 10,218 5,926 74,234 38,403 50,523 17,089 5,357 3,552 1 ,805 5,944 ................Feb. 5 194 3,511 10,262 5,923 74,863 39,027 50 943 17,420 5 281 3,484 1 797 5,780 ..........................12 3,021 10,460 5,910 73,730 38,037 49’215 16,289 5,069 3,270 I ’799 5,948 ..........................19 2,930 10,659 5,896 72,824 38,287 49,274 17,337 4,992 3,243 1 ,749 6,185 ..........................26 95 3,458 10,642 5,942 74,247 38,818 50,182 17,289 4,802 3,093 1 709 6,492 10 3,549 11,320 5,945 73,756 38,652 49,722 16,908 4,745 3,020 1 >5 6,801 ...................... .12 135 3'145 11,357 5,923 73,707 38,751 49,882 16,591 4,444 2,748 1 ,696 7,061 ..........................19/’ 3,497 11,455 5,893 72,971 38,156 49,251 16,499 4,417 2,720 1,697 7,162 ..........................26” Outside New York City 1968 718 4 189 6 433 15,189 197,249 106,341 157,449 57,653 14,395 8,996 5,399 894 ................Mar. 6 93 4,378 6,503 15,156 197,197 106,488 157,507 58,699 14,426 8,938 5,488 940 ..........................18 209 5 055 6,567 15 133 197,789 107,007 157,965 57,970 14,080 8,700 5,380 1,003 ..........................20 1,038 4‘,116 6,674 15’138 196,172 106,884 157,204 59,141 14,086 8,694 5,392 1 ,039 ..........................27 1969 635 8,017 8,874 16,180 217,632 119,076 172,413 62,426 15,246 9,531 5,715 2,623 ................Feb. 5 691 8,599 9,041 16,178 217,495 119,322 172,474 63,192 15,203 9,491 5 712 2,552 ..........................12 281 7,931 9,126 16,135 215,974 119,190 171,628 61,702 15,057 9,389 5 >68 2,595 ..........................17 260 8,270 9,204 16,177 214,530 119,300 171,506 62,489 14,976 9,349 5,627 2,684 ..........................26 443 9,314 9,381 16,288 218,042 119,802 172,169 61,617 14,790 9 218 5,572 2,680 547 8,701 9,322 16,277 215,975 119,696 171,936 62,989 14,650 • 9*096 5,554 2,592 ..........................12 495 9,254 9,586 16,238 216,853 120,276 172,165 61,494 14,365 8,881 5,484 2,766 .........................19” 701 8,799 9,481 16,292 214,882 120,259 172,044 62,985 14,375 8,876 5,499 2,721 ..........................26” 1 After deduction of valuation reserves. 2 Individual items shown gross. 11 Liabilities to branches are reported gross; because of adjustments 3 Includes short-term notes and bills (less than 1 year to maturity) and some differences in coverage, these figures are not directly compa­ issued by States and political subdivisions. 4 Federal agencies only. rable with the other data in this table. For historical data, see Table 3 Includes certified and officers’ checks, not shown separately. 19, page A-83. * Deposits of foreign governments and official institutions, central Note.—Beginning June 29, 1966, coverage of series was changed from banks, and international institutions. Weekly Reporting Member Banks to Weekly Reporting Large Commer­ 7 Includes U.S. Government and postal savings not shown separately. cial Banks (earlier figures for 1966 are comparable with the new series). 8 Exclusive of loans to domestic commercial banks. Also beginning June 29, 1966, detailed breakdown is shown of “AU other ’ All demand deposits except U.S. Government and domestic com­ loans,” of “Other securities,” and of ownership of time certificates of mercial banks, less cash items in process of collection. deposit in denominations of $100,000 or more. For description of revisions, 10 Issues in denominations of $100,000 or more. see Aug. 1966 Bulletin, pp. 1137-40. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 30 BUSINESS LOANS OF BANKS □ APRIL 1969 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1969 1969 (968 1968 Mar. Mar. Mar. Mar. Feb, 2nd 1st 26 19 12 5 26 Mar. Feb. Jan. IV HI half* half Durable goods manufacturing: Primary metals................................. I ,978 1,981 1,971 1,951 1,939 39 4 44 87 -224 168 -56 571 Machinery......................................... 5,063 5,041 4,863 4,797 4,695 368 75 454 22 33 286 Transportation equipment.............. 2,077 2,138 2,069 2,074 2,079 r -2 70 89 157 109 -45 64 44 Other fabricated metal products... 1 ,992 1,998 1,958 I ,915 (.862 130 60 -48 142 -67 -56 210 Other durable goods........................ 2,221 2,242 2,224 2,183 2,180 41 47 -50 38 -67 40 -27 214 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,370 2,409 2,398 2,429 2,426 -56 -58 -493 -607 570 170 740 -521 Textiles, apparel, and leather......... 2,428 2,414 2,381 2,358 2,308 120 162 -41 241 -217 128 -89 527 Petroleum refining........................... 1 ,918 1,908 I ,9(2 1 ,897 I ,903 15 3 297 315 32 85 117 -68 Chemicals and rubber................... 2,476 2,470 2,452 2,384 2,344 132 10 -149 -7 204 -233 -29 171 Other nondurable goods................. 1 ,774 I ,783 1 ,759 1 ,732 1 ,680 94 -34 -56 4 -82 52 -30 72 Mining, including crude petroleum and natural gas..................... 4,947 4,963 4,979 4,976 5,012 -65 -86 387 236 116 -147 -31 558 Trade: Commodity dealers.......1..,.3..1..0.. . 1 ,365 1,414 1 ,387 1,377 -67 24 27 -16 302 -84 218 -497 Other wholesale......3..,.5. 38 3,542 3,503 3,470 3,432 106 104 -43 167 160 54 214 100 Retail......3..,.8...5..7.. .....3..,.8..3.4 3,800 3,887 3,822 35 233 -447 -179 566 -260 306 204 Transportation..................................... 5,324 5,317 5,309 5,271 5,242 82 -53 115 144 272 -59 213 560 Communication........................... . I ,075 1,054 1,153 1,177 1,162 -87 21 -38 -104 191 78 102 Other public utilities............................ 2,675 2,660 2,654 2,674 2,721 -46 -91 -59 -196 311 351 662 -207 Construction......................................... 3,123 3,108 3,070 3,042 3,044 79 45 81 205 79 65 144 263 Services. .............................................. 6,521 6,510 6,448 6,440 6,376 145 85 315 545 432 433 547 All other domestic loans............. 8,325 8,274 8,211 8,204 8,176 165 347 -80 432 472 9 481 559 Bankers’ acceptances........................... 573 553 562 570 580 -7 -54 -94 -155 -30 -53 -83 -392 Foreign commercial and industrial loans....................................... 2,551 2,580 2,564 2,564 2,546 5 -23 -25 -43 58 -55 3 -149 Total classified loans........................... 68,116 68,144 67,654 67,382 66,906 1 ,226 827 -193 1 ,860 3,198 107 3,305 3,154 Total commercial and industrial loans. 75,047 75,074 74,520 74,204 73,727 1,334 834 -246 1,922 6,608 185 3,793 3,362 See Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during—• 1969 1968 1969 1968 1968 Industry Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July 2nd 26 26 29 25 27 30 25 28 31 I IV in II half Durable goods manufactur­ ing: Primary metals........... 1,388 1,356 1,354 1,338 1,414 1,417 1,466 1,426 1,393 50 -128 127 227 -I Machinery........................ 2,429 2,238 2,323 2,261 2,245 2,212 2,338 2,294 2,395 168 -77 59 125 -(8 Transportation equipment. 1,163 1,127 1 ,095 1,035 969 909 931 910 902 128 104 23 19 127 Other fabricated metal products................... 714 709 694 738 714 748 801 798 811 -24 -63 42 67 -21 Other durable goods......... 1 ,048 1,051 1,026 1 ,032 994 991 999 1,003 1,041 16 33 -29 34 4 Nondurable goods manufac­ turing; Food, liquor, and tobacco. 708 681 703 775 779 755 849 823 804 -67 -74 28 -55 -46 Textiles, apparel, and leather...................... 622 633 621 629 602 601 588 575 556 -7 41 22 11 63 Petroleum refining............. 1 ,528 I ,536 1,504 1,212 1,217 1,167 1,228 1,235 1,270 316 -16 2 62 -14 Chemicals and rubber....... 1 ,600 1 ,568 1 ,583 1 ,688 1 ,544 1,544 1,538 1,462 1,516 -88 150 -81 6 69 Other nondurable goods.. 1,025 1,025 1,059 1,061 1,072 1,083 1,087 1,074 1,073 -36 -26 36 -10 10 Mining, including crude pe­ troleum and natural gas. 4,270 4,355 4,442 4,033 3,828 3,829 3,963 3,984 4,042 237 70 -158 74 -88 Trade: Commodity dealers. . 110 112 114 118 114 114 112 114 115 -8 6 -1 -2 5 Other wholesale........ 674 628 653 643 613 616 585 603 608 31 58 -49 49 9 Retail......................... 1,154 1,147 1,124 1,135 1,159 1,144 1,114 1,106 1,152 19 21 -30 46 -9 Transportation............. 4,032 3,972 4,025 3,906 3,744 3,680 3,673 3,688 3,688 126 233 -30 200 203 Communication..................... 437 429 438 441 459 449 472 452 453 -4 -31 26 34 -5 Other public utilities............. 1,230 1 ,228 1 ,245 1,224 1,181 1,077 1,071 1,001 928 6 153 256 105 409 Construction.......................... 874 875 863 808 799 782 794 774 779 66 14 25 63 39 Services................................... 2,869 2,816 2,675 2,576 2,517 2,386 2,361 2,329 2,324 293 213 58 74 273 All other domestic loans. . .. 1,019 1 ,885 987 959 957 940 921 903 942 60 38 16 26 54 Foreign commercial and in­ dustrial loans.......... 1 ,824 1,015 1,901 1,919 1,914 1,876 1,881 1 ,901 1,918 -95 38 -53 -42 -15 Total loans............................. 30,718 30,386 30,429 29,531 28,835 28,320 28,772 28,455 28,710 1,187 759 289 1,113 1,048 Note.—About 160 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 Joans amount­ an original maturity of more than I year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—.revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of I year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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) Feb, Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov, 1969 1968 1969 1968 1969 1968 1969 1968 1969 1968 1969 1968 Percentage distribution of dollar amount Less than 7.00............................. 6.9 76.9 11.7 28.0 10.3 41.3 9.3 65.9 6.6 81.5 5.2 88.9 7 00............................................... 38.4 4.7 4.6 10,9 8,6 11.5 19.1 7.0 31.5 5.1 54.0 2.1 7 01 7 49...................................... 24. 4 8.7 13.6 22,0 13.1 18.2 24,8 11.8 33,2 6.7 24.6 5.7 7.50............................................. 7.6 2.7 12.1 I! .0 15,3 8.5 11,5 4.7 7.7 1.7 4.5 0.6 7,51-7.99..................................... 9.7 2.6 18.7 12.0 20.8 6.7 13.6 3.8 8.1 2.4 6.2 1 .0 8.00............................................. 5.1 2.1 14.1 7.0 Il. t 4.9 7.7 2.5 5.3 1.0 2.7 1.5 8,01-8.49...................................... 3.4 0.8 12.7 4.2 8.5 2.9 5.9 1.4 3.5 0.5 1.2 0.2 8,50. ............................................ 1.7 0.5 3,8 1.3 3.3 1.5 3.0 0.9 1.2 0.6 1.1 0.2 Over 8.50...................................... 2.7 1.1 8.5 3.5 9.0 4.3 5.3 1,8 2.8 0,8 0.5 0.1 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)...................... 3,880.5 4,354.9 49.3 56.5 421,6 485.0 793.3 922.3 498.2 638.1 2,118.2 2,252,9 Number (thousands)............... 32,2 ' 37.1 12.8 14.6 13.6 15,6 4.1 4.8 .8 1.1 .9 ' 1.0 Center Weighted average rates (per cent per annum) 35 centers..................................... 7.32 6.61 7.73 7,27 7.70 7.14 7.46 6.80 7.29 6.57 7.16 6.40 New York City........................ 7.13 6.40 7.76 7.16 7.65 6.95 7.30 6.59 7.13 6.40 7.06 6.32 7 Other Northeast................. . 7.59 6.95 7.88 7.43 8.03 7.42 7.76 7.04 7,48 6.78 7, 18 6.59 8 North Central....................... 7,41 6.69 7.79 7.22 7.81 7.14 7,60 6.87 7,49 6.66 7.26 6.55 7 Southeast............. • 7.01 6.44 7.37 6.98 7.20 6.85 7.09 6.62 6.79 6,42 6.84 5.75 8 Southwest............................ 7.25 6.48 7.56 7.14 7,42 6.93 7.21 6,63 7.23 6.48 7.18 6.10 4 West Coast........................... 7.34 6.62 8,09 7.68 7.81 7,33 7.53 6.83 7.26 6.52 7.18 6.40 Note.—Beginning Feb. 1967 the Quarterly Survey of Interest Rates on 1967—Jan. 26-27 514-53/, 1968—Nov. 13 6'/, Business Loans was revised. For description of revised series see pp. 721­ Mar. 27 Dec. 2 6!4 27 of the May 1967 Bulletin. Nov, 20 fi Dec. 18 6 J/4 Bank prime rate was 6 per cent during the period Jan. 1, 1967-Jan. 1968—Apr. 19 614 1969—Jan. 7 7 25, 1967. Changes thereafter to new levels (in per cent) occurred on the Sept, 25 MM Mar. 17 7>/z following dates: MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period p c a o p m e l r . , p p l a a p ce e d r b a a c n c k e e p r t s ­ ’ F f e u d n e d r s a l 3-month bills 5 6-month bills 5 9- to 12-month issues 3- to 5- 4- to 6- directly, ances, rate 3 year months 1 m 3 o - n to th 6 s - 2 90 days 1 n R ew at e is s o u n e M y a ie r l k d et n R ew at e is o su n e M y a ie r l k d et B k i e ll t s y ( i m el a d r ) ­ 5 Other 4 issues 7 1967............................ 5.10 4 89 4.75 4.22 4.321 4 30 4.630 4 61 4 71 4 84 5.07 1968............................ 5.90 5 69 5.75 5.66 5.339 5.33 5.470 5 48 5 45 5 62 5 59 1968—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 5'44 563 5 69 May......... 6.18 5 99 6 04 6 12 5.621 5 65 5 785 5 83 5 83 6 06 5 95 June......... 6.25 6 04 5 96 6 07 5 544 5 52 5.652 5*64 5*67 601 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 5.88 5 74 5.66 6.03 5.095 5.08 5.224 5 23 515 541 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 Oct.................. 5.80 5 59 5.79 5 92 5 334 5.35 5.401 5 41 5.33 5 44 5 42 Nov................. 5.92 5 75 5.97 581 5.492 5.45 5 618 5 59 5.51 5 56 5.47 6.17 5.86 6.20 6,02 5.916 5,94 6 014 6 05 5.98 6 00 5 99 1969—Jan................... 6.53 6. 14 6 46 6.30 6.177 6.13 6 312 6 28 6.05 6 26 6 04 Feb.................. 6.62 6 33 6 47 6.64 6.156 6 12 6 309 6 30 6.19 6 21 6 16 Mar.......... 6.82 6,38 6.66 6.79 6.080 6.01 6.223 6.16 6,19 6*22 6*33 Week ending— 1969—Mar. 1...... 6.75 6.38 6.63 6.61 6.080 6.10 6.258 6.30 6.26 6.26 6.29 8.........6.75 6.38 6.68 6.75 6.215 6.11 6.342 6.27 6.30 6.28 6,37 15.......... 6.75 6 38 6.70 6.75 6.049 6.01 6.233 6.16 6.19 6 23 6 34 22 6.88 6.38 6.63 6.82 6.108 6.00 6.221 6.16 6.17 6.19 6.34 29.......... 6.88 6.38 6.63 6.87 5.946 5.94 6.096 6.06 6.10 6.18 6.30 i Averages of daily offering rates of dealers. * Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. 5 Bills quoted on bank discount rate basis. maturities in the 90-179 day range. 6 Certificates and selected note and bond issues. 3 Seven-day average for week ending Wednesday. 7 Selected note and bond issues. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 32 INTEREST RATES □ APRIL 1969 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' 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 ­ 1961............................................... 3.90 3.60 3.27 4.01 4.66 4.35 5,08 4.54 4,86 4.57 4.66 2.98 4.76 1962............................................... 3.95 3.30 3.03 3.67 4.62 4,33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963............................................... 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4,42 4.65 4.41 4,30 3.17 5.68 1964............................................... 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965....................................... . .. 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................... 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967.............................................. 4.85 3.99 3,74 4.30 5,82 5.51 6.23 5.74 5,89 5.81 5.34 3.20 5.71 1968................................................ 5.25 4.48 4.20 4.88 6.51 6.18 6,94 6.41 6,77 6.49 5.78 3.07 1968—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 6.10 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 5.80 July..................................... 5.09 4.45 4.J2 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 Sept.. .................................. 5.09 4.45 4.23 4.78 6.35 5.97 6.79 6.24 6.70 6.27 5.63 3.01 5.68 Oct...................................... 5.24 4.49 4.21 4.89 6.43 6.09 6.84 6.35 6.72 6.39 5.76 2.94 Nov..................................... 5.36 4.60 4.33 4.98 6,56 6.19 7.01 6.47 6.78 6.58 5.82 2.92 Dec..................................... 5.65 4.76 4.50 5.18 6.80 6.45 7.23 6.72 6.97 6.85 5.93 2.93 1969—Jan...................................... 5.74 4.89 4.58 5.34 6.89 6.59 7.32 6.78 6.98 7.02 5.93 3.06 Feb.................... 5.86 5.02 4.74 5.44 6,93 6.66 7.30 6.82 6.98 7.05 5.94 3.10 Mar................................... 6.05 5.25 4.97 5.61 7.11 6.85 7,51 7.02 7.16 7,23 6.09 3.17 Week ending— 1968—Dec. 7 ............................. 5.56 4.68 4.40 5.07 6.69 6.33 7.14 6,63 6.86 6.69 5.81 2,87 14.............. 5.55 4,73 4.45 5.15 6,77 6.45 7.18 6,71 6.94 6,87 5.87 2.90 21 5.66 4.82 4,57 5.25 6.82 6.48 7.24 6.73 6.99 6,87 5.92 2.91 28.............................. 5.82 4,82 4.57 5.25 6.88 6,53 7.31 6.77 7.05 6.96 6.02 2.96 5.74 4.82 4.57 5.25 6.91 6.55 7.35 6.79 7.02 7,03 6.01 2.99 11............................. 5.78 4.90 4.58 5.35 6.91 6.58 7.35 6.80 6.98 7.03 5.96 3.08 18............................. 5.72 4.90 4.58 5.35 6.90 6.59 7.34 6.78 6,98 7.03 5,94 3.06 25 ............................. 5.70 4.90 4.58 5.35 6.89 6.59 7.29 6.75 6.96 7.02 5.91 3.05 Feb I.............................. 5.79 4.95 4.60 5.40 6.87 6.59 7.27 6.74 6.99 6.98 5.89 3.05 8............................. 5.88 5.03 4.72 5.45 6.90 6.63 7.29 6.78 6,98 7.02 5.88 3.04 15............................. 5.76 5.03 4.72 5.45 6.94 6.66 7.31 6.84 6.99 7.06 5,90 3.03 22, . 5.86 4.97 4.70 5.38 6.93 6,66 7.28 6.83 6.99 7,05 5.93 3.12 5.93 5.06 4.80 5.45 6.94 6.68 7.30 6.85 6.99 7.06 6.03 3.19 8.............................. 5.95 5.18 4,90 5.55 7.00 6.72 7.39 6.88 7.06 7,12 6.07 3.16 15............................ 6.07 5.20 4.92 5.60 7.05 6.75 7.46 6.92 7.13 7,18 6.08 3,18 22.............................. 6.11 5.30 5.02 5.65 7,18 6.94 7.57 7.11 7.20 7.27 6.09 3.18 29............................ 6.07 5.30 5.02 5.65 7,23 6.99 7.63 7.16 7.24 7.35 6.12 3.14 Number of issues 2..,,............... 9 20 5 5 108 18 30 38 30 40 14 500 500 i 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 series. 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

APRIL 1969 □ SECURITY MARKETS A 33 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks in Amer­ thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex­ change U.S. total Govt, State Cor­ Indus­ Rail­ Public Indus­ Trans­ Fi­ index1 (long­ and porate Total trial road utility Total trial porta­ Utility nance NYSE AMEX term) local AAA tion 1966......................... 78.63 102.6 86.1 85.26 91.09 46,34 68.21 46.15 46.19 50.28 45.41 44.25 14.67 7,538 2,741 1967......................... 76.55 100,5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968......................... 72.33 93.5 76.4 98.70 107.49 48.84 66,42 55.37 58.00 50.58 44,19 65.85 27.72 12,971 6,353 1968—Mar............. 70.98 92.7 76.9 89.09 96.77 41.68 62.62 49.48 51.54 43.29 41.78 52.98 22,21 9,178 3,600 Apr......... 72,06 94.7 76.2 95.67 104.42 44.79 63.66 53.23 56.03 46.85 42.46 57.56 24.39 14,779 6,536 May............. 70.89 92.7 75.3 97.87 107.02 48.00 62.92 54.85 58.04 49.92 42.07 60.43 27.17 13,276 8,142 June.............. 72.58 92.8 75.6 100.53 109.73 51.72 65.21 56.64 59.83 52.86 43.30 64.60 29,20 15,139 7,491 July............... 73.99 95.3 76.1 100,30 109.16 51.01 67.55 56.41 59.12 51.59 44,69 68.90 29.18 14,266 6,600 Aug............... 74.48 95.9 78.1 98.11 106.77 48.80 66.60 55.04 57.59 49.01 44.09 68.19 28.38 10,718 4,778 Sept.............. 73.95 93.7 78.4 101.34 110.53 51.11 66.77 56.80 59.57 51.94 44.53 71.77 29.75 13.435 6,542 Oct................ 72.44 92.7 77.0 103.76 113.29 54.26 66.93 58.32 61.07 55.24 45.22 77.50 30.76 15,112 6,376 Nov.............. 71.27 91.2 75.7 105.40 114.77 53.74 70.59 59.44 61.97 55.96 47.18 79.55 31.24 14,821 6,789 Dec............... 68.47 89,2 73.0 106,48 116.01 55.19 70.54 60.32 63.21 57.30 46,73 79.00 32.96 14,865 8,075 1969—Jan,............... 67.61 88.0 72.3 102.04 111.00 54.11 68.65 57,82 60.32 56.35 45.64 75.58 32,15 12,122 6,781 Feb................ 66.55 86.4 71.8 101,46 110.15 54,78 69.24 57,33 59.61 56.18 45.98 75.26 31.67 11,685 5,801 Mar......... 64.90 83.7 70.6 99.30 108.20 50.46 66.07 55.69 58.30 51 ,52 44,06 70.60 29.92 9,960 4,401 Week ending— Mar. 1........ 65.96 85.5 71.4 98.26 106.71 52.12 67.16 55.32 57.58 53,32 44.56 70.99 30,14 to,654 4,883 8 65.75 84.5 71.3 98.95 107.66 51.34 66.66 55.57 58.03 52.48 44,37 70.20 29.94 9,895 4,507 15, . 64.75 84. 1 71,2 98.75 107.53 50.09 66.23 55,38 57.91 51.29 44.11 69.96 29.73 9,242 3,786 22 64.34 83. 1 70.4 99.08 108.01 50.13 65.67 55.55 58.18 51.13 43.88 70.40 29.67 10,042 4,302 29........ 64.75 83.0 69.4 100.43 109.62 50.29 65.73 56.26 59.07 51.20 43.86 71.84 30.25 10,661 5,009 J Begins June 30, 1965, at 10.90. On that day the average price of a share yields in table at bottom of preceding page on basis of an assumed 3 per of stock listed on the American Stock Exchange was $10.90. cent, 20-year bond. Municipal and corporate bonds, derived from average yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, Note.—Annual data are averages of monthly figures. Monthly and 20-year bond; Wed. closing prices. Common stocks, derived from com­ weekly data are averages of daily figures unless otherwise noted and are ponent common stock prices. Volume of trading, average daily trading in computed as follows: U.S. Govt, bonds, derived from average market stocks on the exchanges for a 5^-hour trading day; beginning Jan. 1969 a 4-hour trading day. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t n c e t r ) t ­ c F c h e ( e a p e n r s e g t ) r e & t s M (y a e t a u r r s it ) y L r c p ( a o e p r t i a n e i c n t o r e ) ) (C d h c o p P o h l r u l u a i a c s s r 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 o a n e t c n e t r t ) ­ c F c h ( e e a p e n r e s t g ) r e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c t n o r e ) / (t d h c o o p P h l r u u l a i a s c s r . r e ­ e s o ) f (t a d h L m o o l o u l o a a s u . r n n s o ) t f 1963. 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19.2 70.8 17.8 12.6 1964. 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965. 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 11,1 21.6 15.6 1966. 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72,0 22.2 15.9 1967. 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 t7.4 1968...................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1968--Jan.............. 6.39 .86 25.4 72.9 29.7 21.5 6.57 .82 22.7 73.7 24.9 18.0 Feb............. 6.47 .94 25.5 74.5 29.8 21.9 6.58 .81 22.6 73.6 24.5 17.9 Mar............ 6.50 .88 25.7 74.3 30.2 22.2 6.59 .79 23.0 73.3 25.4 18.3 Apr............. 6.57 .88 25.3 73.4 30.3 21.9 6.64 .80 22.6 72.8 25.1 18.1 May............ 6.69 .95 25.0 73.2 30.2 21.7 6.81 .87 22.5 73.1 25.3 18,3 June............ 6.88 .95 25,4 74.4 30.4 22.3 6.97 .86 22.6 73.1 25.2 18.2 July............ 7.04 .85 25.5 73.7 30.5 22.2 7.10 .83 22.5 72.6 25.7 18.5 Aug............. 7.10 .87 25.5 73.6 31.0 22.6 7.12 .85 22.7 73.0 25.6 18.6 Sept............ 7.10 .87 25.5 74.2 30.3 22.1 7.11 .82 22.6 72.6 25.4 18,3 Oct............. 7.09 .88 25.6 74.5 31.0 22.7 7.09 .84 22.5 72.4 25.5 18.3 Nov............. 7.07 .84 25.4 74.1 30.7 22.5 7.07 .82 22.7 72.9 26.2 18.9 Dec............. 7.09 .89 25.9 74.0 33.7 24.7 7.09 .85 23.3 73.2 28.1 20.4 1969--Jan.............. 7.16 .84 25.6 73.6 33.2 24.1 7.18 .86 22.8 72.6 27.9 20.0 Feb.».......... 7.26 .80 25,6 73.2 32.4 23.5 7.28 .86 22.9 72.8 27.3 19.7 t Fees and charges—related to principal mortgage amount—include based on probability sample survey of characteristics of mortgages loan commissions, fees, discounts, and other charges, which provide originated by major institutional lender groups (including mortgage added income to the lender and are paid by the borrower. They exclude companies) for purchase of single-family homes. Data exclude loans for any closing costs related solely to transfer of property ownership. refinancing, reconditioning, or modernization; construction loans to homebuilders; and permanent loans that are coupled with construction Note.—Compiled by Federal Home Loan Bank Board in cooperation loans to owner-builders. Series beginning 1965, not strictly comparable with Federal Deposit Insurance Corporation. Data are weighted averages with earlier data. See also the table on Home-Mortgage Yields, p. A-5t. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 34 STOCK MARKET CREDIT □ APRIL 1969 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 justed debit credit tended End of Unrestricted Restricted debt Brokers Banks Total bal­ bal­ by period (mil­ 1 2 ances ances brokers lions of 30-39 40-49 50-59 60 per dol­ 1968—Feb................. 6,150 2,420 8,570 7 419 2 778 4,641 Under 30 per per per cent lars) Mar................ 6,190 2,370 8'560 7^248 2,692 4,556 per cent cent cent cent or more Apr................ 6,430 2,350 8,780 7,701 2^79 4,722 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-Feb.. . 4.1 56.8 14.4 5.3 19.4 11,870 July................ 6,500 2,420 8,920 8,861 3’269 5,592 Mar... 5.9 53,3 15.5 6.1 19.2 11,700 Aug......... 6^460 2’490 8,950 8^489 2^984 5^505 Apr... 19.8 46. 1 10.8 4.7 18.7 12,270 Sept......... 6^390 21520 8’910 8,723 3,126 5’597 May.. 21.9 45.0 9.4 4.9 18.8 12,820 Oct.............. 6^250 2’560 8’810 8'859 3,407 5,452 Nov............... 6,200 2’630 8,830 9,029 3,419 5,610 Dec......... 6^200 2'710 8,900 9,790 3,717 6’073 Under 60 or 20 20-29 30-39 40-49 50-59 more 1969—Jan................. 5,900 2,750 8,650 9,107 3,597 5,510 Feb.».............. 5,700 2’810 8,510 9,055 3,645 5,410 June.. 0.8 22.1 47.3 8.5 4.0 17.3 12,590 July.. . 1.2 21.3 43.5 10.4 5.1 18.5 12,060 1 End of month data. Total amount of credit extended by member firms Aug... 2.7 25.9 37.9 10.1 4.9 18.6 11,900 of the New York Stock Exchange in margin accounts, estimated from Sept... 5.4 32.4 29.6 8.8 4.1 19.7 11,910 reports by a sample of 38 firms. Oct.... 4.3 35.9 27.0 8.9 4.2 19.7 11,540 2 Figures are for last Wed. of month for large commercial banks re­ Nov... 10.6 36.4 21.4 7.6 3.6 20.4 11,460 porting weekly and represent loans made to others than brokers or dealers Dec... 3.8 38.9 20.2 7.5 3.8 26,3 12,060 for the purpose of purchasing or carrying securities. Excludes loans col­ lateralized by obligations of the U.S. Govt. 1969 Jan.... 5.9 40.6 20.9 8.1 4.4 20.1 11,080 Note.—Customers’ net debit and free credit balances ane end-of-month Feb. »\ 2.6 38.8 22.9 9.4 5.1 21.1 10,700 ledger balances as reported to the New York Stock Exchange by all member firms that carry margin accounts. They exclude balances carried for other member firms of national securities exchanges as well as balances Note.—Adjusted debt is computed in accordance with requirements set of the reporting firm and of its general partners. Net debit balances are forth in Regulation T and often differs from the same customer’s net debit total debt owed by those customers whose combined accounts net to a balance mainly because of the inclusion of special miscellaneous accounts debit. Free credit balances are in accounts of customers with no unfulfilled in adjusted debt. Collateral in the margin accounts covered by these data commitments to the broker and are subject to withdrawal on demand. Net now consists exclusively of stocks listed on a national securities exchange. credit extended by brokers is the difference between customers’ net debit Unrestricted accounts are those in which adjusted debt does not exceed the and free credit balances since the latter are available for the brokers’ use loan value of collateral; accounts in all classes with higher ratios are until withdrawn. 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 40-49 40 lars) 1 Equity class of accounts Net in debit status Total 1968—Feb... 6,150 33.8 38.3 12.0 5.2 10.7 End of period credit balance Mar.. 6,190 32.1 37.6 14.1 5.3 11.0 status 60 per cent Less than (millions Apr.. 6,430 48.7 26.4 10.2 4.3 10.4 or more 60 per cent of dollars) May.. 6,640 51.0 24.9 8.6 4.4 11.0 1968—Feb.................5..1....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 5,370 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.. 6,500 15.4 28.1 30.6 9.5 4.9 11.6 Aug..,................ 49.8 46.4 3.8 5,780 Aug.. 6,460 17.3 28.8 28.2 9.1 4.8 11.8 Sept...................... 51.0 45.3 3,6 5,840 Sept.. 6,390 20.0 31.1 25.0 8.1 4.4 11,5 Oct....................... 52.9 40.3 5.2 5,640 Oct... 6,250 20.9 31.3 23.3 8.7 4.0 11.8 Nov,.............. 53.2 43.3 3.5 5,550 Nov,. 6,200 25.5 31.4 19.4 7.4 3.9 12.5 Dec...................... 54.4 40.4 5.2 5,690 Dec.. 6,200 24,0 30.2 19.4 8.0 4,2 14.2 1969—Jan.............. 52.7 42,3 5.1 5,650 1969—Jan... 5,900 24.4 29.3 20.8 7.9 4.6 13.0 Feb,*’,......... 52.8 41,6 5.6 5,610 Feb.r 5,700 20.5 28.3 22.6 9.1 5.4 14.1 Note.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional 1 See footnote J 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

APRIL 1969 □ OPEN MARKET PAPER; SAVINGS INSTITUTIONS A 35 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Held by— Based on—■ End of period Accepting banks F.R. Goods stored in or Placed Placed Total Banks Others p I o m rt ­ s p E o x rt ­ s Dollar shi p p o p i e n d t s b e in tw — een Total through direct­ into from ex­ dealers 1 ly 2 Total O bi w lls n bo B u il g ls h t O ac w ct n . c F e o i o g r n r r. ­ U St n a i t t e e s d U S n ta it t e e d s change U St n a i t t e e s d co F u o n re tr ig ie n s 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...................... 16,635 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 37 162 2,042 1968—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 1 ,778 1,409 369 87 118 2,447 1,229 1,025 18 116 2,042 May......... 18,417 5,761 12,656 4,359 1 ,624 1,282 342 56 132 2,547 1,267 1 ,007 17 77 1,992 J une.......... 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 1,819 1,474 344 51 149 2,399 1,435 932 100 52 1,899 Sept........... 20,264 7,737 12,527 4,327 1 ,714 1,393 321 86 124 2,403 1,420 945 78 46 1,838 Oct........ 20,839 7,592 13,247 4,420 1,551 1,280 271 56 119 2,695 1,479 921 80 53 1,887 Nov........... 22,220 7,758 14,462 4,389 1 ,605 1,352 253 58 114 2,612 1,476 922 68 55 1 ,869 Dec.......... 20,497 7,201 13,296 4,428 1 ,544 1,344 200 58 109 2,717 1,423 952 52 68 1 ,934 1969—Jan............. 21,813 7,873 13,940 4,370 1 ,407 1 ,211 195 50 104 2,809 1,405 906 93 111 1 ,854 Feb....... 22,865 8,342 14,523 4,420 1 ,473 1 ,263 210 91 99 2,757 1,449 859 82 120 1,910 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 Mortgage loan assets—• commitments 3 Total General classified by maturity Other liabili­ Depos­ Other reserve (in months) End of period State Corpo­ Cash assets ties its2 liabili­ ac­ Mort­ Other U.S. and rate and ties counts gage Govt. local and general govt. other1 reserve accts. 3 or Over less 3-9 9 Total 1941.................... 4,787 89 3,592 1 *86 829 689 11 ,772 10 503 38 1,231 1945 ................... 4^202 62 10,650 1 .257 606 185 16,962 15,332 48 1 ,582 n.a. n.a. n.a. n.a. I960................... 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 n.a. n.a. 1,200 1961.................... 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 n.a. n.a. n.a. 1,654 1962.................... 32,056 602 6,107 527 5,177 956 695 46,121 41 ,336 828 3,957 n.a. n.a. n.a. 2,548 1963................... 36,007 607 5,863 440 5,074 912 799 49^702 44,606 943 4,153 n.a. n.a. n.a. 2,249 1964................... 40'328 739 5,'791 391 5,'099 1 ,004 886 54,238 48,849 989 4'400 n.a, n.a. n.a. 2’820 1965................... 44,433 862 5,485 320 5,170 1 ,017 944 58,232 52,443 1,124 4,665 2 697 1966................... 47'193 1,078 4'764 251 5'719 '953 1,024 60’982 55^006 1,114 4,863 2,010 1967................... 50’311 1 '203 4,319 219 8'183 993 1'138 66,365 60,121 1 '260 4,984 742 982 799 2,523 1968—Feb.......... 50,902 1,334 4,405 220 8,672 903 1,156 67,592 60,945 1,575 5,071 627 955 818 2,400 Mar...... 51,039 1 ,341 4,412 229 8,937 914 1,198 68 '070 61,615 1 ,'388 5'067 669 1,036 772 2’477 Apr.......... 51,199 1'267 4,303 221 9'113 871 1,190 68'165 61,554 1.553 5,058 695 '906 961 2^561 51 402 1 '474 4 374 421 9 213 877 1 215 68'768 61 926 1 732 5 110 650 1 069 949 2’669 June........ 51,621 1,387 4,235 206 9,403 951 1,230 69^034 62 Jw 1,503 5; 120 640 1 ^051 1 ,018 2^709 July......... 51,869 1,385 4,213 205 9,616 924 1,218 69,429 62,607 1,706 5,116 737 1,046 996 2,779 Aug...... 52,102 I '489 4’203 201 9,778 912 1,217 69,902 62,851 1 '871 5’180 776 1,094 1 ,058 2,928 Sept........ 52,323 1 368 4,139 204 9,827 990 1,253 70,203 63’381 1 '628 5,194 889 1,067 1 ,015 2,971 Oct.......... 52,636 1,431 3'999 195 9,913 911 1,227 70,312 63 ,550 1 ,567 5,195 835 1,144 1 ,090 3,070 Nov...... 52^946 1 332 3,913 200 10'001 914 1'267 70^773 63 800 11707 5',266 945 1,132 1,125 3,202 Dec.r.... 53,286 1 '407 3 334 194 10,180 996 1,256 71'152 64,507 1 ,372 5’273 811 1,034 1 J66 3,011 1969—Jan.r........ 53,579 1,426 3,962 195 10,298 835 1,256 71 ,550 64,747 1 ,507 5,295 760 1,073 1,186 3,020 Feb.......... 53,807 1,559 3,989 190 10,429 888 1,269 72,132 65,087 1 ,692 5,353 711 1,165 1,210 3,085 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 New York State as reported to and are based on reports filed with U.S. Govt, and State bank supervisory the Savings Banks Assn, of the State of New York. Data include building agencies. Loans are shown net of valuation reserves. Figures for Jan. and loans 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 □ APRIL 1969 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U S n ta 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: 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 1967......................................... 177,361 10,505 4,587 2,976 2,942 75,707 64,920 10,787 67,516 5,186 10,059 8,388 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......................................... 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 10,011 1968—Jan.r........................... 178,173 10,575 4,574 3,001 3,000 74,830 65,804 9,026 67,733 5,209 10,140 9,686 Feb.............................. 178,762 10,584 4,616 2,997 2,971 75,266 66,095 9,171 67,867 5,244 10,258 9,543 Mar.............................. 179,477 10,562 4,582 3,007 2,973 75,760 66,412 9,348 68,055 5,263 10,362 9,475 Apr.............................. 180,411 10,493 4,496 3,016 2,981 76,087 66,661 9,426 68,123 5,303 10,474 9,931 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 Aug.............................. 183,840 10,491 4,427 3,023 3,041 77,894 67,850 10,044 68,909 5,474 10,925 10,147 Sept............................. 184,752 10,505 4,443 3,012 3,050 78,176 68,002 10,174 69,024 5,496 11,026 10,525 Oct............................... 185,701 10,574 4,479 3,025 3,070 78,754 68,411 10,343 69,212 5,510 11,117 10,534 Nov.............................. 186,892 10,531 4,415 3,037 3,079 79,304 68,793 10,511 69,407 5,535 11,197 10,918 Dec.............................. 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5,573 11,284 10,881 1969—Jan............................... 188,972 10,602 4,400 3,048 3,154 80,418 69,350 11,068 70,205 5,620 11,399 10,728 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E p n er d i o o d f M ga o ge rt s ­ s G e U c o . u S v r t . i , ­ Cash Other 1 a li s a T s b e o i t l t s i a t 2 i l — e s S c a a v p i i n ta g l s u R n e d a s i n e v r d i v d e e s d B m or o r n o e w y e 3 d L p o ro an ce s s i s n Other c m o Io m e a n m n ts i 4 t­ ties profits 1960.................... 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961.................... 68^834 5,2U 3,315 4'775 82,135 70,885 5 708 2,856 1,550 1,136 1,908 1962.................... 78,770 5’563 3*926 5,346 93'605 80,236 6 520 3 629 1,999 1,221 2 230 1963.................... 90,944 6.445 3,979 6,191 107,559 91,308 7 209 5’615 2,528 1,499 2 614 1964 ................... 101,333 6,966 4'615 7.041 119’355 101,887 7 899 5’601 2*239 1’729 2’590 1965.................... 110,306 7,414 3,900 7,960 129^580 110'385 8,704 6,444 2,198 1,849 2,751 1966.................... 114*447 7^771 3,362 8 416 133,996 114,009 9 102 7 464 1,272 2,149 1 517 1967”.................. 121,893 9,244 3'408 9 057 143 602 124,562 9 557 4 739 2’281 2^463 3,631 1968 Feb.......... 122,548 9 711 2 898 9 314 144 471 124,685 9 556 4 595 2 181 3 454 3 386 Mar......... 123'337 9,904 2^943 9,385 145,569 125,960 9*546 4,511 2,300 3,252 3,840 124*216 9*761 2,803 9,375 146,155 125,666 9 541 4*806 2,437 3'705 4,051 May......... 125J73 10,101 2,760 9,691 147,725 126323 9,536 4355 2,562 4,249 3,993 June......... 1 25,900 9,822 3,006 9,583 148,311 127,917 9,849 5,194 2,592 2,759 3,762 July.......... 126,618 9,700 2,449 9,513 148,280 127,312 9,840 5,276 2,536 3,316 3,918 127,492 9,604 2 409 9 615 149 120 127 701 9 834 5 274 2 438 3 873 3 849 Sept......... 128,302 9,533 2 528 9 608 149 971 128,834 9*834 5 324 2,’422 3,557 3 782 Oct........... 129,147 9,605 2,568 9,658 150,978 129,329 9*831 5,335 2,416 4,067 3,856 Nov...... 129,879 9^671 2,693 9,890 152,133 129,977 9,834 5,331 2,392 4,599 3,837 Dec.......... 130,782 9,531 2,964 9,548 152,825 131,620 10,311 5 672 2,444 2,778 3,631 1969—Jan.r........ 131,404 9,920 2,372 9,527 153,223 131,529 10,318 5,665 2,403 3,308 3,769 Feb.......... 132,088 10,124 2,518 9,704 154,434 132,139 10,310 5,599 2,469 3,917 4,090 1 Includes other 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. Note.—Federal Home Loan Bank Board data; figures are estimates for 2 Before 1958 mortgages are net of mortgage-pledged shares. Asset all savings and loan assns. in the United States. Data beginning with 1954 items will not add to total assets, which include gross mortgages with no are based on monthly reports of insured assns. and annual reports of deductions for mortgage-pledged shares. Beginning with Jan. 1958. no noninsured assns. Data before 1954 are based entirely on annual reports. deduction is made for mortgage-pledged shares. These have declined Data for current and preceding year are preliminary even when revised. consistently in recent years from a total of $42 million at the end of 1957. Figures for Jan. and June 1968 reflect conversion of one savings and loan 3 Consists of advances from FHLB and other borrowing. assn, to a mutual savings bank. Figures for June 1968 also reflect exclu­ sion of two savings and loan assns. in process of liquidation. 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APRIL 1969 a FEDERALLY SPONSORED CREDIT AGENCIES A 37 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks F M ed o e rt r g a a l g N e a A tio ss n n a , l B f a o n r k s inte F r e m de e r d a ia l te Fe la d n e d r al Assets Liabilities and capital (sec o o p n e d r a a r t y i o m n a s) rket cooperatives credit banks banks End of period v m a A b n t e e o d c m r s . e ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h t s B n a o o n n t d e d s s M p b o d e e s e m i ­ r t s ­ C s a to p c it k al M l g o ( a A a o g n r ) e t s ­ D n t e a u ( o b L n r t e d e e ) s s n ­ c L a o t ( o o i t A v o a p e n ) e s s r ­ D t e u ( b L re e ) s n­ c L o d a ( o u A n i a s n d n ) ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1961............. 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2.431 1962............. 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963............. 4,784 1,906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 1,952 3,310 2,834 1964............. 5,325 1,523 141 4,369 1,199 1,227 1,940 1,601 958 686 2,247 2,112 3,718 3,169 1965............. 5,997 1.640 129 5,221 1,045 1 ,277 2,456 1,884 1,055 797 2,516 2,335 4.281 3,710 1966............. 6,935 2,523 113 6,859 1,037 1,369 4,266 3,800 1,290 1,074 2,924 2,786 4,958 4,385 1967............. 4,386 2,598 127 4,060 1 ,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968—Feb... 4,348 2,775 95 4,373 1,182 1,412 5,802 5,149 1,595 1,416 3,529 3,336 5,721 4,990 Mar... 4,269 2,720 75 4,125 1,302 1,417 5,659 5,481 1,598 1,316 3,615 3,420 5,793 5,120 Apr.,. 4,545 2,416 91 4,125 1,271 1,422 6,110 5,650 1,549 1,322 3,728 3,526 5,853 5,120 May.. 4,719 2,337 97 4,151 1,319 1,425 6,251 5,650 1,482 1,280 3,835 3,640 5.923 5,222 June.. 4,889 2,832 103 4,701 1,400 1,426 6,387 5,887 1,454 1,207 3,940 3,477 5,973 5,214 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 Sept... 5,026 2,283 93 4,501 1,253 1,401 6,562 6,032 1,479 1 ,280 3,841 3,814 6,064 5,384 Oct... 5,034 2,300 97 4,501 1,287 1 ,401 6,657 5,923 1,551 1,290 3,753 3,669 6,094 5,423 Nov... 5,040 2,581 81 4,701 1 ,322 1 ,402 6,758 6,166 1 ,583 3,636 3,570 6,107 5,423 5,423 Dec... 5,259 2,375 126 4,701 1 ,383 1,402 6,872 6,376 1 ,577 1 .334 3,654 3,570 6,126 5,399 1969—Jan... 5,357 2,049 82 4,701 1,111 1,408 7,032 6,604 1,630 1 ,401 3,719 3,576 6,169 5,432 Feb... 5,298 2,069 82 4,601 1,131 1,434 7,244 7,193 1 ,680 1,425 n.a. 3,668 6,226 5,432 Note.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the U.S. Mortgage Assn., and Farm Credit Admin. Among the omitted balance Govt.; for a listing of these securities, see table below. Loans are gross sheet items are capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks, Bonds, debentures, and notes are valued at par. They in­ for other agencies. clude only publicly offered securities (excluding, for the home loan banks OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, FEBRUARY 28, 1969 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: Apr. 25. 1969........................6^ 326 Debentures: Apr. 21, 1969..................5.60 250 May 26, 1969........................6 300 Sept. 10, 1971...................4^ 96 July 15, 1969...................4% 130 July 25, 1969....................5.75 400 Sept. 10, 1971...................5% 350 July 15, 1969...................4^ 60 Aug. 25, 1969......................6^ 300 Feb. 10, 1972...................5>/« 98 July 15, 1969..................6.70 200 Oct. 27, 1969......................6% 400 June 12, 1972...................4>/s 100 Sept. 22, 1969................... 279 June 12, 1973...................4^ 146 Oct. 20, 1969...................4% 209 Bonds: Oct, 1, 1973.....................6 250 Jan. 20, 1970...................5^ 209 Mar. 25, 1969......................5% 300 Feb. 10, 1977...................4% 198 Feb. 20, 1970....................51/g 82 June 25, 1969....................6.30 550 « Feb. 20, 1970..................6.30 344 Sept. 25, 1969........................6 400 Apr. 1, 1970....................3'/i 83 Nov. 25, 1969.....................,.6 500 Banks for cooperatives Apr. 20, 1970..................6.20 362 Feb. 25, 1970........................6 200 Debentures: June 22, 1970..................6.70 174 Mar. 25, 1970........................6 200 Apr. 1,1969...................5,55 ’•275 July 20,1970.....................5>/s 85 Apr. 27, 1970........................6 225 May 1,1969....................5.80 '256 July 20,1970.....................6 241 May 25, 1970....................5.80 300 June 2,1969...................6.05 '296 Oct. 20, 1970....................6.30 223 Feb. 25, 1971....................6.60 200 July 1,1969....................6.40 246 May 1,1971......................3^4 60 Federal National Mortgage Associa­ Aug. 4, 1969...................6.60 353 Oct. 20,1971....................6.00 447 tion—Secondary market opera­ Feb. 15,1972....................5.70 230 tions Fe D de e r b a e l n in tu te r r e m s: ediate credit banks S O e c p t. t . 2 1 3 5 , , 1 1 9 9 7 7 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 % ’/, 2 1 0 0 0 9 De A J M J b u u p e l n a y r n y e . t u 1 1 1 1 r 2 0 0 0 e , , , s , 1 1 : 9 9 1 1 6 6 9 9 9 9 6 6 .. . 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . % . . 6 . 5 4 . > 1 ’4 4 0 2,5 3 2 2 4 0 5 5 8 3 0 8 0 0 J J A S M A M u u e u p l n a a p y g r y r e t . . . . 2 1 4 2 3 1 1 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 9 9 9 9 9 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 6 5 5 . .. 5 6 . . . . . 4 6 0 9 8 5 % 5 5 5 5 0 ^ ' ' ' 2 3 4 4 3 4 4 9 5 1 0 7 2 0 3 8 6 9 7 8 6 J A J F A F F u a e e e p p n l b b b y r r . . . . . . 2 2 2 2 2 2 2 1 0 0 0 4 2 0 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 6 9 6 4 8 5 3 . . . . . . - . . . . . . 7 . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 5 5 5 5 M % ‘ % U /» ‘ 2 2 1 1 1 1 1 8 0 5 5 2 5 4 5 0 3 0 5 8 0 D Fe e b c. . 1 1 2 0 , , 1 1 9 9 6 70 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 .6 .60 5 2 5 5 0 0 N O o ct v . . 3 1 , , 1 1 9 9 6 6 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 6 . . 3 6 5 0 4 4 9 9 2 0 Te S n h ne o s r s t e -t e e r V m a ll n e o y t e A s u .. t . h .. o .. r . i . t . y .. ......... 340 Apr. 10. 1970.....................4% 142 Bonds: June 10, 1970...................6.60 400 Federal land banks Nov. 15, 1985...................4.40 50 Sept, 10, 1970.....................4/s 119 Bonds; July 1, 1986.....................4ft 50 Oct. 13. 1970.................... 400 Feb. 15, 1967-72................4*/, 72 Feb. 1, 1987.....................454 45 Mar. 11, 1971.....................6 350 Oct. 1, 1967-70................4W 75 May 15, 1992....................5.70 70 Aug. 10, 1971.....................4% 64 Mar. 20, 1969......................4% 100 Nov. 13, 1992....................6% 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 □ APRIL 1969 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend­ Borrowings from the public4 Less: Cash and Memo: iture account monetary assets Net Period B re u c d e g ip e t t s p t N e u e n x r e e d ­ t s i­ l N e in n e g d t ­ B l o u a u d y g t s ­ e 1 t s B d u u e ( r o f d p - i g l r c ) u e i . t s t P se d u t c i e b e u b s l r i t i c ­ A s P e g t l c i u e e u n s s r : c i ­ y m L e e n a s t s c s : c o b I u y n n v G ts e o s v t­ t, S n L p o e e t s c e s i s a : 2 l b E T o q i r o n u r t g o a a w l l s ­ : o T p s i u r e n e r r g y a a ­ t­ Other f m O i n n in e t o a e h a g f n t e n , 3 c r s ­ o t p r s w r d a h i n t e v n o i b s p a e f t t 4 r e e ­ r Special balance Issues Other Fiscal year: 1965........................ 116,813 117,182 1 ,249 118,431 -1,618 5,561 704 2,023 308 -126 4,060 1 ,231 1,096 -116 1966........................ 130,864130,822 3,832134,654 -3,790 2,633 4,042 2,470 773 354 3,077 -552 160 321 1967........................ 149,562 153,299 5,053 158,352 -8,790 6,330 5,079 5,035 4,001 -482 2,854 -5,222 303 1,017 1968........................ 153,676 172,806 6,057 178,862 -25,187 21 ,352 5,944 3,371 1,949 -1,119 23,095 -397 1 ,700 3,394 ............ Half year: 1967—July-Dec.... 67,181 84,862 1 ,666 86,527 -19,340 18,442 1,650 1 ,079 577 -436 18,872 -131 32 375 1968—Jan.-June... 86,495 87,941 4,393 92,335 -5,841 2,910 4,294 2,292 1 ,372 -683 4,223 -266 1 ,668 3,019 July-Dec.... 82,881 92,186 977 93,163 -10,282 10,450 1 ,446 -380 1,587 -384 11,076 -598 -105 -1,496 9,853 Month: 1968—Feb.............. '12,094 '13,845 '■612 ’■14,457 '-2,364 5,296 '5 1 ,312 '236 -220 '3,974 1,667 224 282 Mar............. 11,870 14,311 611 14,922 -3,053 -2,083 287 -530 104 -20 -1,350 -3,488 564 1,479 Apr............. 19,045 15,199 479 15,678 3,368 -2,489 1 ,357 245 273 -19 -1,631 1 ,099 928 290 May............ 11,711 15,385 856 16,241 -4,529 5,310 120 2,199 450 -5 2,786 -1,226 -925 -408 June............ 19,539 14,374 313 14,687 4,852 '-4,716 894 370 -35 -405 '-3,752 5 1 ,769 '674 July............. 11,732 13,986 313 14,299 -2,564 ’-3/500 75 -641 169 -12 '4,059 714 -335 ’■-1,116 Aug............. 13,129 16,092 189 16,281 3,153 3,278 1 ,369 1,184 639 -15 2,839 -1 ,420 329 -777 Sept............. 18,775 16,049 207 16,256 2,518 387 28 -374 31 758 4,003 78 806 5,284 Oct............... 10,687 16,524 286 16,810 -6,122 2,451 *■292 -857 482 -7 3,125 -2,073 -325 593 Nov............. 12,738 15,070 55 15,125 -2,387 -331 -80 209 230 -165 -686 -3,754 338 -343 Dec.............. 15,820 14,465 -71 14,394 1 ,427 1,166 -238 99 35 -185 979 1 ,932 -279 -753 4,565 1969—Jan............... 15,845 15,798 -37 15,761 84 1 ,383 -33 c612 H12 -1,000 1,626 2,504 789 1 ,583 Feb.............. 14,590 14,361 373 14,734 -144 -648 (95 1,159 274 -1 ,887 -2,304 -126 -399 ............ Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n n ts ba G la o n ld c e Total se P c d u u e b r b i l t i t i c e s s A ec g u e r n it c ie y s G In o v v e t s , t m ac e c n o t u s n o ts f S n L p o e e t c s e s i s a : 2 l E T h q o b e u y l t d a a l l s : sp c p G o o r N i r n o v p o s v a s o w t t . r e . — - e s d ■ Special Other public issues Fiscal year: 1964........................ 939 9,180 120 10,238 311,678 8,632 46,627 12,581 3,581 257,520 7,195 1965 ........................ 672 10,689 108 11,469 317,215 9,335 48,650 12,888 3,455 261,557 8,309 1966........................ 766 10,050 102 10,917 319,851 13,377 51,120 13,662 3,810 264,637 10,436 1967........................ 1 ,311 4,272 1 12 5,695 326,181 18,455 56,155 17,662 3,328 267,491 9,220 1968........................ 1 ,074 4,113 111 5,298 347,533 24,399 59,526 19,611 2,209 290,586 10,041 Cal. year: 1967........................ 1 ,123 4,329 112 5,564 344,663 20,206 57,234 18,223 2,892 286,520 8,994 1968........................ 703 3,885 HI 4,700 358,029 15,064 59,146 20,266 1,825 291,855 16,287 Month: 1968—Feb.............. 1,197 7,601 HO 8,908 351,556 21,741 57,242 18,819 2,658 294,578 9,396 Mar............. 581 4,727 111 5,420 349,473 22,027 56,711 18,924 2,638 293,227 9,279 Apr.............. 1 ,035 5,372 111 6,519 346,984 23,384 56,957 19,196 2,619 291,596 9,274 May............ 956 4,225 Hl 5,293 352,294 23,505 59,156 19,646 2,614 294,383 '9,409 June............ 1 ,074 4,113 111 5,298 ’’347,578 24,399 59,526 19,611 2,209 ’•290,631 10,041 July.............. 1,113 4,787 Hl 6,012 351,078 24,474 58,885 19,780 2,197 294,690 10,044 Aug.............. 916 3,564 111 4,592 354,356 25,843 60,069 20,419 2,182 297,529 9,927 Sept............. 1,036 7,448 111 8,595 354,743 20,055 59,695 19,919 2,182 293,001 15,948 Oct............... 1 ,086 5,325 111 6,522 357,194 20,347 58,838 20,401 2,175 296,126 '15,882 Nov............. 478 2,179 HI 2,768 356,863 20,267 59,047 20,632 2,010 295,441 16,328 Dec.............. 703 3,885 111 4,700 358,029 15,064 59,146 20,266 1,825 291,855 '21,481 1969—Jan............... 517 6,576 111 7,204 359,412 15,031 59,759 20,378 825 293,481 21,840 Feb.............. 505 4,284 Hl 4,900 358,764 15,225 60,918 20,652 825 291,595 n.a. 1 Equals net expenditures plus net lending. the bottom panel, however, these conversions decrease the outstanding 2 Represents non-interest-bearing public debt securities issued to the amounts of Federal securities held by the public mainly by reductions in International Monetary Fund and international lending organizations. agency securities. The Federal National Mortgage Association (FNMA) New obligations to these agencies are handled by letters of credit. was converted to private ownership in Sept. 1968 and the Federal Inter­ 3 Includes accrued interest payable on public debt securities, deposit mediate Credit Banks (FICB) and Banks for Cooperatives in Dec. 1968. funds, miscellaneous liability and asset accounts, and seigniorage. 5 Includes debt of Federal home loan banks, Federal land banks, D. C. 4 The decrease in Federal securities resulting from conversion to private Stadium Fund, FNMA (beginning Sept. 1968), FICB, and Banks for ownership of govt.-sponsored corporations is shown as a memo item rather Cooperatives (beginning Dec. 1968). than as a repayment of borrowing from the public in the top panel. In Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ FEDERAL FINANCE A 39 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation Social insurance taxes Individual income taxes income taxes and contributions Period Employment taxes and Excise Cus­ Estate Mise, Total contributions1 Other taxes toms and re­ With Non- Re- Net Gross Re- Un- net Net gift ceipts 3 held with­ funds total re­ funds empl. re­ total held ceipts Pay­ insur. ceipts 2 roll Selftaxes empl. Fiscal year: 1965................................. 116,813 36,840 16,820 4,86948,79226,131 670 17,359 3,819 1,07922,256 14,570 1 ,442 2,716 1 ,576 1966.................................... 130,86442,811 18,486 5,851 55,44630,834 761 20,662 3,777 1 ,12725,565 13,062 1 ,767 3,066 1 ,885 1967.................................... 149,56250,521 18,850 7,845 61 ,52634,918 94626,041 1 ,776 3,659 1 ,865 33,347 13,719 1 ,901 2,978 2,120 1968.................................... 153,67657,301 20,951 9,527 68,72629,897 23227,679 1,544 3,346 2,051 34,620 14,079 2,038 3,051 2,498 Half year: 1967—July-Dec.............. 67,20427,192 4,150 59730,747 11,345 542 12,678 105 1,335 965 15,082 7,081 993 1,332 1,165 1968-—Jan -June........... 86,47230,109 16,801 8,93037,979 18,550 690 15,001 1,439 2,011 1 ,086 19,536 6,998 1 ,044 1 ,718 1,333 July-Dec............... . 82,881 33,712 5,515 475 38,751 15,494 785 14,945 131 I ,290 1 ,179 17,544 7,834 1 ,213 1 ,417 1 ,413 Month: 1968—Feb..................... rl 2,094 »'5,804 1,100 ri ,309 r5,595 650 r77 3,209 119 807 r158 ’’4,291 1 ,068 155 ’-202 ’207 Mar.................... 11,870 5,508 697 2,803 3,401 4,439 42 1 ,919 129 50 158 2,256 1,165 161 236 253 Apr.......................... 19,045 4,045 7,687 2,344 9,388 4,339 97 2,251 859 148 195 3,453 1,101 185 447 229 May................. 11,711 5,566 539 2,300 3,805 763 113 3,979 173 843 180 5,175 1 ,309 191 360 220 June......................... 19,539 4,837 2,978 208 7,608 7,419 119 2,499 54 44 206 2,803 1,181 176 239 232 July......................... 11,732 4,560 605 151 5,013 2,259 84 2,093 114 204 2,411 1 ,448 205 232 248 Aug.......................... 13,129 6,200 272 112 6,360 654 116 31664 618 167 4'449 1 ’,175 210 229 168 Sept......................... 18,775 5,565 3,682 48 9,199 5,133 133 2,273 110 55 213 2'651 1 '223 205 229 268 Oct......................... 10,687 4,981 378 60 5,299 1 ,496 218 1 ,939 6 108 204 2,256 1 ,222 212 242 178 Nov........................ 12,738 6,339 202 58 6,483 679 120 3,126 346 187 3,659 1 ,354 186 229 267 Dec................. 15,820 6,068 376 46 6,397 5,273 114 1 ,850 15 49 204 2,118 1 312 195 256 284 1969—jan ......................... 15,845 5,113 5,184 75 10,222 1,665 62 1 ,688 110 159 218 2,176 1 ,254 119 277 194 Feb........................... 14,590 7,254 1,202 1,169 8,456 784 102 3,796 128 773 183 4,880 1,152 144 230 217 Budget outlays Com­ Educa­ Period Na­ Nat­ Com­ mon, tion Intra­ Total tional Inti, Space Agri­ ural merce develop, and Health Vet­ Inter­ Gen­ govt, de­ affairs re­ cul­ re­ and and man­ and erans est eral trans­ fense4 search ture sources transp. housing power welfare govt. ac­ tions 5 Fiscal year: 1965................................. 118,431 49,578 4,340 5,091 4,807 2,063 7,364 288 2,509 27,209 5,722 10,357 2,276 -3,174 1966..................................... 134,654 56,785 4,490 5,933 3,679 2,035 7,135 2,644 4,496 31,320 5,920 11,285 2,360 -3,431 1967..................................... 158,352 70,081 4,547 5,423 4,376 1,860 7,652 2,616 6,135 37,605 6,897 12,588 2,584 -4,009 1968..................................... 178,862 80,516 4,619 4,721 5,944 1,702 8,076 4,076 7,012 43,508 6,882 13,744 2,632 -4,570 1969 "6................................. 183,701 80,999 3,938 4,247 5,448 1,898 8,048 2,313 7,165 48,839 7,692 15,171 2,948 -5,105 1*6970 ................................. 195,272 81,542 3,755 3,947 5,181 1 ,891 8,969 2,772 7,887 54,966 7,724 15,958 3,275 -5,745 Half year: 10A7- Tnlv Opr 86,527 •38,739 2,292 17U0 Jail, juiic. ........ 92,335 •41,784 2,429 93,163 •39,849 2,133 Month: ri4,457 •6,407 395 14,922 •6,365 410 15,678 •7,093 377 16.241 •7,191 425 14,687 •7,550 450 la.lv 14,299 •5,897 277 16,281 •6,667 434 16,256 •6,686 342 16,810 •7,057 393 15,125 •6,613 334 14,394 •6,929 353 IGAO- Ton 15,761 •6,895 347 Feb 14,734 •6,426 335 * Old-age, disability, and hospital insurance, and Railroad Retirement Statement data. accounts. s Consists of government contributions for employee retirement and 2 Supplementary Medical Insurance premiums and Federal employee interest received by trust funds. retirement contributions. 6 Estimates presented in Jan. 1969 Budget Document. Breakdowns do 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ not add to totals because special allowances for contingencies and July ous receipts. . 1969 Federal pay increase, totaling $100 million for fiscal 1969 and $3,150 4 Half year and monthly figures represent Federal Reserve approxima­ million for fiscal 1970, are not included. tion of fiscal year functional classification using available Monthly Treasury Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 40 U.S. GOVERNMENT SECURITIES □ APRIL 1969 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total Marketable Nonmarketable End of period gross Con­ Special p d u e b b l t i c 1 Total v ib e l r e t­ Sav­ issues 4 Total Bills C c e a r t t e if s i­ Notes Bonds 2 bonds Total 3 b i o n n g d s s & notes 1941—Dec............................................ 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec..................................................... 259.1 233.1 176.6 17.0 30.0 10.1 119.5 ........5..6....5. 49.8 24.6 I960—Dec..................................................... 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec..................................................... 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 1962—Dec..................................................... 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec..................................................... 309.3 261.6 207.6 51,5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec..................................................... 317.9 267.5 212.5 56.5 59.0 97.0 3.0 52.0 49.7 46.1 1965—Dec..................................................... 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec..................................................... 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec..................................................... 344.7 284.0 226.5 69.9 ........6..1.....4 95.2 2.6 54.9 51.7 57.2 1968—Mar.................................................... 349.5 289.4 231,7 71.3 66.7 93.6 2.5 55.2 51.8 56.7 Apr..................................................... 347.0 286.7 228,7 68.6 66.5 93.6 2.5 55.4 51.8 57.0 May................................................... 352.3 289.7 231.8 69.6 71.1 91.1 2.5 55.5 51.9 59.2 June................................................... 347.6 284.9 226.6 64.4 71.1 91.1 2.5 55.8 51.9 59.5 July.................................................... 351.1 289.1 231.0 68.9 71.1 91.0 2.5 55.6 52.0 58.9 Aug.................................................... 354.4 291.1 233.2 69.4 75.4 88.4 2.5 55.5 52.0 60.1 Sept.................................................... 354.7 291 .9 233.6 69.8 75.4 88.3 2.5 55.8 52.1 59.7 Oct.................................................... 357.2 295,2 236.7 73.0 75.3 88.3 2.5 56.1 52.2 58.8 Nov.................................................... 356.9 294.8 235.7 73.0 76.5 86.2 2.5 56.7 52.3 59.0 Dec................................................... 358,0 296.0 236.8 75.0 ........7..6....5. 85.3 2.5 56.7 52.3 59.1 1969—Jan..................................................... 359.4 297.8 238.5 76.8 76.5 85.3 2.5 56.8 52.3 59.8 Feb..................................................... 358.8 295.9 236.5 76.8 78.2 81.5 2.5 56.9 52.3 60.9 Mar.................................................... 359.5 296.6 237.3 77.5 ........7..8.....2 81.5 2.5 56.8 52.3 61.1 1 Includes non-interest-bearing debt (of which $637 million on Mar. 31, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1969, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds, and the Federal postal saving bonds. Home Loan Banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, armed forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value in billions of dollars) Held by— Held by private investors E pe n r d io o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s i . t t e , s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u i e 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 n t a i r t n o e e d i n r g ­ a n l 1 O i m n to t v i h r s e s c e s , r ­ 2 funds bonds securities 1939—Dec. 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec. 259. 1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1960—Dec. 290,2 52.8 27,4 210.0 62,1 6.2 11.8 18.7 18.7 45.6 20.5 13.0 13.5 1961—Dec. 296.2 52.4 28.9 214.8 67.2 6.1 11.3 18,5 19.0 46.4 19.5 13.4 13.5 1962—Dec. 303,5 53.2 30,8 219.5 67,1 6.0 11.5 18.6 20.1 47.0 19.1 15.3 14.8 1963—Dec. 309.3 55.3 33.6 220.5 64,2 5.6 Ml.2 18.7 21.1 48,2 20.0 15,9 '15.6 1964—Dec. 317.9 58.4 37.0 222.5 63.9 5.5 GLO 18,2 21.1 49.1 20.7 16.7 '16.3 1965—Dec. 320.9 59.7 40.8 220.5 60.7 5.3 HO.3 15.8 22.9 49.7 22.4 16,7 '16.7 1966—Dec. 329,3 65.9 44.3 219.2 57,4 4.6 9.5 14.9 ■24.9 50.3 24.4 14,5 '18.8 1967—Dec. 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 25.1 51.2 22,9 15.8 18.9 1968—Feb. 351.6 73.4 49.0 229.2 63,7 4.1 8.4 14.8 26.4 51.2 24.0 15.2 21.4 Mar. 349,5 72.9 49.7 226.9 62.0 4.1 8.5 14.1 27.1 51.2 24.0 14.7 21.2 Apr. 347.0 73.1 50.5 223.4 59.8 4.0 8.3 13.6 26.9 51.2 24.0 14.7 20.9 May 352.3 75.7 50.6 226.0 60.8 4,0 8.4 15.6 26.8 51.3 24.1 14.0 20.9 June 347.6 76.0 52.2 219.2 59.8 3.9 8.1 13.0 26.6 51.3 23.0 12.9 20.8 July. 351.1 75.6 52.4 223.1 61.2 3.9 8.1 14.3 26.7 51.3 23.4 13.1 21.1 Aug. 354.4 76.9 53.0 224.5 62.1 3.8 8.1 14.5 26.9 '51.4 23.6 13.3 20.9 Sept. 354.7 76.6 53.3 224.9 63.5 3.8 8.1 12.9 26.7 51.3 23.9 13.4 21.3 Oct.. 357.2 76,2 53.3 227.7 65,3 3.6 8.1 14.0 26.8 51.4 23.6 13,8 21.0 Nov. 356.9 76.7 53.4 226.9 63.9 3.6 8.0 14,8 26.7 51.5 23.3 15.0 20.2 Dec. 358.0 76.6 52.9 228.5 65.5 3.6 8.0 ■"14.6 ’27.1 51.5 23.7 14,3 r20.1 1969—Jan. 359,4 77.3 52.1 230.0 64.2 3.6 7.9 16.8 27,8 51.5 24.4 11.9 21.8 Feb. 358.8 78.7 52.3 227.8 60.8 3.6 7.8 17.8 28.4 51.5 24.7 12.0 21.1 1 Consists of investments of foreign balances and international accounts The debt and ownership concepts were altered beginning with the March in the United States. 1969 Bulletin. The new concepts (I) exclude guaranteed securities and (2) 2 Consists of savings and loan assns., nonprofit institutions, corporate remove from U.S. Govt, agencies and trust funds and add to other mis­ pension trust funds, and dealers and brokers. Also included are certain cellaneous investors the holdings of certain Govt.-sponsored but privately- Govt, deposit accounts and Govt.-sponsored agencies. owned agencies and certain Govt, deposit accounts. Note.—Reported data for F.R. Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ U.S. GOVERNMENT SECURITIES A 41 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total U5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 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—Dec 31........................................................ 236'812 1081611 75 012 331599 68,260 35’130 8*396 16*415 1969—jan 31........................................................ 238’543 1101377 761779 331598 68,260 35’129 8 394 16 382 Feb 28........................................................ 236^535 1001282 76,769 2i;513 75,778 35'727 8,392 16 354 U.S Govt, agencies and trust funds: 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 11144 5,202 2 194 2 115 3*513 1968 Dec 31................................................. 18 098 4,447 2 710 I ’,737 4 978 3*010 2 124 3 538 1969 Jan. 31................................................ 17’883 4’ 176 2’449 1 1727 5 001 3 044 2’124 3*538 Feb 28................................................ 18,115 4,208 2,'579 1,629 5,228 3,’018 2,’123 3,’538 Federal Reserve Banks: 1966 Dec. 31............................................... 44,282 35,360 12,296 23,064 7,502 1 007 153 260 1967 Dec. 31................................................ 491112 31’, 484 16,041 15’,443 16,215 ’858 178 377 1968 Dec 31................................................. 52’937 281503 18’756 91747 12,’880 10 943 203 408 1969 Jan 31................................................ 52,127 27,693 171946 91747 121880 10*943 203 408 Feb 28................................................ 52,275 191288 17,993 11295 19,017 13352 203 414 Held by private investors: 1966_Dec. 31................................................ 159,152 67,072 50,815 16,257 48,224 24,485 6,187 13 184 j 967__Dec. 31................................................ 160’,763 691299 51,393 17,906 56',742 15 807 6 124 12 789 1968 Dec 31................................................. 165 777 75.661 53'546 22,115 5O,'4O2 21*177 6 069 12 469 1969 Jan 31 ............................................... 168 533 78,508 56’384 22,124 50,’379 21’142 6 067 12*436 Feb 28 ................................................ 166,145 761786 56,197 201589 511533 19357 6,067 12!4O2 Commercial banks: 1966__Dec, 31....................................... 47,182 15,838 8,771 7,067 21,112 9,343 435 454 1967—Dec. 31........................................ 52’194 181451 10 415 8,036 261370 6 386 485 502 1968—Dec. 31......................................... 53 174 181894 %040 9,854 23,157 10 035 611 477 1969—Jan. 31....................................... 51 757 171585 8 003 9,582 231144 9 051 603 475 Feb. 28........................................ 49,025 151720 61366 9,354 231332 8’928 577 468 Mutual savings banks: 1966—Dec, 31........................................ 4,532 645 399 246 1,482 1,139 276 990 1967—Dec. 31........................................ 4'033 716 440 276 1,476 ’707 267 867 1968—Dec. 31......................................... 3,'5 24 696 334 362 1,117 709 229 773 1969—Jan. 31........................................ 3,591 782 426 356 1,102 713 225 769 Feb. 28 ........................................ 3,604 791 468 323 11184 646 222 760 Insurance companies: 1966—Dec. 31........................................ 8,158 847 508 339 1,978 1,581 1,074 2,678 1967—Dec. 31........................................ 71360 815 440 375 2,056 914 1,175 2,400 1968—Dec. 31......................................... 61857 903 498 405 1 1892 721 1’120 2,221 1969—Jan. 31........................................ 6 851 899 504 395 1 ,868 738 1,119 2,227 Feb. 28.......................... ............ 6,767 972 576 396 1,861 600 1J43 2,190 Nonfinancial corporations: 1966—Dec. 31....................................... 6,323 4,729 3,396 1,333 1,339 200 6 49 1967—Dec. 31 ........................................ 41936 31966 2,897 1,069 '898 61 3 9 1968—Dec. 31......................................... 5’915 41146 21848 1,298 1 ,163 568 12 27 1969—Jan. 31........................................ 6,918 41996 3,584 1312 1 ,320 580 13 10 Feb. 28........................................ 7,421 51437 3,862 1,575 1331 531 13 8 Savings and loan associations: 1966—Dec. 31........................................ 3,883 782 583 199 1,251 1,104 271 475 1967—Dec. 31........................................ 41575 1,255 718 537 1,767 ’811 281 461 1968—Dec. 31 ........................................ 4,724 1,184 680 504 1,675 1,069 346 450 j 969—.Jan. 31........................................ 41887 1 ,316 765 551 1,697 1,074 346 453 Feb. 28........................................ 4>83 11365 885 480 1,836 979 343 459 State and local governments: 1966—Dec. 31........................................ 15,384 5,545 4,512 1,033 2,165 1,499 1,910 4,265 1967—Dec. 31....................................... 141689 5’,975 41855 1,120 2,224 937 1,557 3,995 1968—Dec. 31......................................... 13,426 5,323 4,231 1,092 2,347 805 1,404 3,546 1969—Jan. 31........................................ 131988 5,924 4,809 1,115 2,359 819 1 ,364 3,522 Feb. 28........................................ 14,533 6,462 5,442 1,020 2.520 728 1,359 3; 465 AU others: 1966—Dec. 31....................................... 73,690 38,685 32,646 6,039 18,896 9,619 2,215 4,275 1967—Dec. 31....................................... 721976 38,121 31,628 6,493 21351 5,991 2,356 4,555 1968—Dec. 31....................................... 78,157 44,515 35,915 81600 19,051 7,270 2,347 4,975 1969—Jan. 31.......................................... 80,541 47,006 38,293 8,713 18,889 7,267 2,397 4,980 Feb. 28........................................ 791810 46,039 38,597 7,442 19,370 6,944 2,406 5,051 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,816 commercial banks, 499 mutual savings Ownership. banks, and 754 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 503 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 □ APRIL 1969 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total Dealers and brokers securities W 1 y it e h a in r y 1 e - a 5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U.S. Govt, Other m C b e a o r n c m k ia s ­ l o A th U e r securities 1968—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 k972 185 60 28 759 75 827 586 227 May........................ 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 87 908 504 280 Aug.............................. 2^214 1,705 228 261 20 849 90 790 485 258 Sept.............................. 2,133 1,820 180 111 22 824 63 762 484 233 Oct............................... 2,011 1,714 165 108 22 732 72 737 470 290 Nov.............................. 2^506 2; 242 152 77 35 859 83 890 674 243 Dec.............................. 2’974 2,318 391 196 70 I 096 111 1 125 642 298 1969—Jan................................ 2,781 2,423 225 92 41 1 058 116 1 022 585 337 Feb............................... 2,453 2;095 226 97 37 885 86 916 565 278 Week ending— 1969—Feb. 5....................... 2,845 2,376 267 171 31 1,051 101 1 102 591 250 12r...................... 2’178 I ,893 184 76 25 ’753 74 807 545 145 19r..................... 2’713 2’308 256 107 42 1 023 97 956 637 302 26r..................... 2 J59 1 '853 202 65 39 782 82 806 489 348 Mar. 5....................... 2 562 2,249 193 74 47 991 93 941 537 312 12....................... 2’292 2*004 180 63 46 877 103 807 504 284 19....................... 2 J 90 1 ^888 193 62 49 807 98 770 516 341 26....................... 2,257 1 ,938 199 79 40 389 Note.—The transactions data combine market purchases and sales of sales of securities under repurchase agreement, reverse repurchase (resale), U.S. Govt, securities dealers reporting to the F.R. Bank of New York. or similar contracts. Averages of daily figures based on the number of They do not include allotments of, and exchanges for, new U.S. Govt, trading days in the period. securities, redemptions of called or matured securities, or purchases or DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Period mat A ur ll i ties W 1 y it e h a in r y 1 e - a 5 r s 5 O y v e e a r r s s a e G g c e u o n r v i c t t y i . e s Period sou A r l c l es Y N o ew rk w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th U e r City 1968—Feb.........3..762 3,500 108 153 369 Mar......... 2,438 2,211 124 103 361 1968—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 3 162 699 923 844 696 July......... 4,420 3 972 159 288 644 June.......... 3,458 867 879 1 ,010 702 5,262 4,097 283 881 732 July........... 4,341 1,193 1,032 1,415 701 Sept......... 5,098 4,043 198 857 687 Aug. 5,465 1,431 1,372 1,710 952 Oct......... 4,137 3,427 130 580 751 Sept........... 5’,519 1,596 1,894 1,254 775 3,766 2 ’ 948 160 659 652 Oct............ 4,518 1'163 1,664 903 788 Dec...... 4,093 3,606 136 352 615 4,’191 '877 1,199 1.325 791 Dec........... 4,431 1 ,212 886 1,461 871 1969—Jan........2..,.918 2,757 0 162 508 Feb.......... 2,389 2,193 34 161 449 1969—Jan............ 3 100 737 641 1,310 412 Feb............ 2,660 417 360 1,311 573 Week ending— Week ending— 1969—Jan. 1 ., 3,632 3,247 135 250 601 8. . 2,661 2,415 83 163 490 1969—Jan. 1... 3,890 1,159 765 1,223 743 15. . 2,484 2,351 2 131 425 8. .. 3,194 735 718 1,239 502 22. . 3,046 2,889 -19 175 479 15. 2,831 620 567 1,285 359 29.. 3,258 3,102 -29 185 619 22. .. 2,820 592 496 1,346 386 29. 3,346 898 708 1,332 407 Feb. 5.. 3,365 3,289 -66 142 501 12.. 2,714 2,402 89 224 399 Feb. 5... 3,502 932 670 1 ,461 439 19.. 1,940 1 ,742 32 167 418 12. . . 3,033 628 414 1 ,400 590 26.. 2,112 1,953 34 125 480 19. . . 2,563 202 241 1,298 821 26. . . 1 ,894 44 233 1,196 422 Note.—The figures include all securities sold by dealers under repur­ chase contracts regardless of the maturity date of the contract, unless the 1 All business corporations, except commercial banks and insurance contract is matched by a reverse repurchase (resale) agreement or delayed companies. delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more Note.—Averages of daily figures based on the number of calendar days clearly represent investments by the holders of the securities rather than in the period. Both bank and nonbank dealers are included. See also dealer trading positions. ' Note to the opposite table on this page. Average of daily figures based on number of trading days in the period. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ GOVERNMENT SECURITIES A 43 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 1969 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Coot. Treasury notes—Coot. Treasury bonds—Cant. Apr. 3 1969............ 2,704 Aug. 31, 1969................ 1,506 Nov. 15, 1971..........5% 1,734 Aug. 15, 1972..........4 2,579 Apr. 10’ 1969................ 2'708 Sep't. 4' 1969................ (,101 Feb. 15, 1972..........446 2,006 Aug. 15, 1973...........4 3,894 Apr 17 1969............... 2^703 Sept. 11 , 1969................ 1,100 Apr. 1,1972...........HA 34 Nov. 15, 1973..........4% 4,350 Apr 22’ 1969f............. 2^003 Sept. 18, 1969................ 1,100 May 15, 1972..........4% 5,310 Feb. 15,1974..........4% 3J29 Apr 24’ 1969............... 2,704 Sept. 25’ 1969................ 1,101 Oct. 1'1972...........DA 33 May 15’ 1974..........4*4 3,586 Apr. 30’ 1969................ 1 ;5oi Sept. 30’, 1969......... 1,501 Apr. i; 1973..........DA 34 Nov. 15, 1974...........3% 2,241 May 1 1969............... 2,701 Oct. 31' 1969............... 1 '502 Aug. 15, 1974..........5% 10,284 May 15' 1975-85.. .4*4 1,215 May 8’ 1969.............. 2'702 Nov. 30,’ 1969................ 1 ’,501 Oct 1,1973.........DA 26 June 15, 1978-83... 3% 1,564 May 15’ 1969............... 2'699 Dec. 31' 1969................ 1 ,500 Nov. 15, 1974..........5& 3,980 Feb. 15, 1980...........4 2,599 May 22’ 1969............... 2,705 Jan. 31', 1970............... 1 '000 Feb. 15, 1975..........5% 5,148 Nov. 15; 1980..........3«A 1,907 May 29’ 1969............... 2’702 Feb. 28,' 1970................ 1 '000 May 15, 1975..........6 ’ 6,760 May 15' 1985...........3% 1,108 May 31 ’ 1969............... 1 '503 Mar. 31' 1970................ 1 ,001 Feb. 15', 1976...........6% 3,726 Aug. 15’ 1987-92... 4 3,816 2'701 Feb. 15, 1988-93... 4 249 June 12’, 1969............... 2,701 Treasury notes Treasury bonds May 15, 1989-94.. .4% 1,559 June 19, 1969.............. 2’702 Apr. 1, 1969.........11/i 61 June '15, 1964-69...2 2,541 Feb. 15, 1990..........3% 4,858 June 23' 1969f............. 6,771 May 15, 1969.........5% 4,277 Dec. 15, 1964-69... 2U 2,485 Feb. 15; 1995...........3 1 ,549 June 26’ 1969^............. 2,705 Aug. 15. 1969.........6 3,366 Mar. 15, 1965-70.. .2*A 2,282 Nov. 15, 1998..........3'A 4,289 June 30' 1969............... 1.502 Oct I, 1969.........1^ 159 Mar. 15, 1966-71... 1,222 July 3’ 1969............... 1'103 Apr. 1, 1970........DA 88 June 15, 1967-72... 2<4 1,246 July 10’ 1969............... 1 J02 May 15' 1970.........5% 7,794 Sept. 15, 1967-7 2... 2(4 1'952 July 17’ 1969............... 1 JOI May 15’, 1970.........6% 8,759 Dec. 15, 1967-72.. .2(4 2'599 July 24,’ 1969................ 1 '097 Oct. 1, 1970.........1*4 113 Oct. 1, 1969..........4 6,242 July 31’ 1969............... 2,606 Nov. 15; 1970.........5 7,675 Feb. 15; 1970...........4 4,381 Aug. 7’ 1969............... 1 ,100 Feb. 15', 1971........5^ 2; 509 Aug. 151 1970...........4 4,129 1,100 Apr. 1971........DA ’ 35 Aug. 15,’ 1971...........4 2^806 Convertible bonds Aug. 21’ 1969............... 1 ,104 May 15', 1971.........5*4 4,265 Nov. 15; 1971..........3% 2,760 Investment Series B Aug. 28; 1969................ 1 ,'101 Oct. 1/ 1971.........1% ' 72 Feb. 15; 1972..........4” 2,344 Apr. 1, 1975-80...2’4 2,469 t Tax anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds amount Period deliv­ Total G g o a e b t a n i l l o e i n ­ r­ s R n e u v e e­ HAAl G l U o o a .S v n . t s , State S di p s a s t e n t a c r d t i i , c a t l Other2 ered3 Total c E at d i u on ­ b R r a o id n a g d d e s s i U tie ti s l ­ 4 H in o g u 5 s­ V a e a n t i e d s r ’ ­ O p p o t u s h e r e s ­ r auth. 1962.. 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1963.. 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964. 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966. 11,405 6,804 3,955 325 312 2,590 4,110 4,695 n.a. 11,303 3,738 1,476 1,880 533 3,667 1967. 14,766 8,985 5,013 477 334 2,842 4,810 7,115 n.a. 14,643 4,473 1,254 2,404 645 5,867 1968P 16,571 9,253 6,507 528 282 2,773 5,939 7,837 n.a. 16,465 4,815 1,525 2,828 787 6,508 1968--Feb....... 1,155 689 452 14 152 386 618 n.a. 1,156 478 109 128 7 434 Mar...... 1 ,404 593 652 144 15 110 518 777 n.a. 1,394 373 9 132 190 690 Apr....... 1 ,318 798 502 18 80 581 657 n.a. 1,314 299 128 324 112 451 May.... 1,143 686 251 144 61 222 314 609 n.a. 1,140 402 52 204 161 321 June.... 1,395 694 669 32 87 547 764 n.a. 1,396 374 185 259 8 570 July.... 1,469 813 637 20 257 597 615 n.a. 1,466 396 114 282 4 670 Aug...... 1,699 791 755 129 23 264 792 643 n.a. 1,688 488 126 412 133 529 Sept...... 1,444 1,003 419 22 292 353 801 n.a. 1,435 409 152 200 3 671 Oct....... 2,230 1 ,437 773 20 617 819 791 n.a. 2,227 732 374 407 28 686 Nov...... 1,021 585 320 111 6 223 324 473 n.a. 997 271 25 115 121 465 Dec....... 1 ,115 321 771 22 19 408 689 n.a. 1,112 164 45 191 20 692 Jan....... 1 ,239 931 296 11 546 275 417 n.a. 1,237 354 165 153 4 560 Feb....... 975 451 375 141 7 144 474 356 n.a. 973 238 222 168 144....... 201 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 3 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 * 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 □ APRIL 1969 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Proposed use of net proceeds, all corporate issues 6 Noncorporate Corporate New capital Period Re­ Bonds Stock tire­ Total U.S. U.S. Total ment G U o . v S t . .2 G a c g y o e v n 3 t ­ , l S o a c t n a a d t l e 4 Other 5 Total Total 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 r r r e e ­ d C m o o m n ­ Total m N on ew ey 7 O p p o t u s h r e e ­ s r s ri e o t c ie f u s ­ 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................... 35327 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 8390 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 10356 1 305 10’544 760 13357 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 1i’148 889 15,992 13,720 5,570 8,150 725 1 347 15 801 14 805 13,063 1,741 996 1966................... 45315 8,231 6,806 11,089 815 18,074 15,561 8’,018 7,542 574 1339 17 841 17 601 15,806 1^795 241 1967................... 68’514 19,431 8 180 14,288 1,817 24398 21,954 14,990 6 964 885 1,959 24 409 24 097 22,233 1 867 312 1968—Jan.......... 4,556 481 999 1 (62 144 1,771 1,449 903 546 46 276 1,732 1 705 1 588 117 27 Feb......... 8 372 4,719 550 1,134 61 1,608 1 3^2 796 585 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 1,210 175 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....... 4,984 383 779 1,360 52 2,411 2,025 1,340 685 24 361 2,367 2,334 1,944 389 33 July........ 4,913 417 800 I ,422 130 2,143 1,771 1 ,244 528 85 286 2,097 2,091 1,985 106 6 Aug........ 9,821 5,850 580 1,729 230 1,432 1,037 637 400 93 303 1,397 1,394 1,074 320 3 Sept........ 3,819 361 250 1 ,423 228 1,557 1,159 726 433 1 397 1,513 1,497 1,281 216 15 Oct......... 6,111 430 1,147 2,260 146 2,129 1,604 1 ,009 595 25 499 Nov..... 3'294 379 1 037 118 1 ,767 1 ’, 301 '939 362 41 425 Dec......... 3,812 377 223 1,138 20 2,054 1 372 607 965 19 464 n.a. n.a. n.a. n.a. n.a. 1969—Jan......... 3,812 427 424 1,244 108 2,023 1 ,570 980 590 67 386 n.a. n.a. n.a. n.a. n.a. Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e l r la c n ia e l o a u n s d Transportation Public utility Communication an R d e a f l i n e a s n t c a i t a e 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 s secu­ capital« 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 Hl 2,211 47 2,016 22 4,741 127 1,955 2,399 5 1968--Jan........................... 537 15 208 11 91 417 186 267 Feb..................................... 556 5 142 1 118 546 8 147 61 2 Mar................................... 761 1 175 192 431 17 78 6 102 Apr................................... 353 11 317 203 178 189 1 146 May................................... 550 1 175 1 106 2 549 103 * 341 1 June................................... 750 5 394 1 154 474 27 237 326 1 July................................... 818 5 401 2 204 236 235 195 Aug............................. 349 212 1 110 438 92 2 193 Sept.................................... 432 3 208 * 108 469 155 125 12 Oct..................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Nov................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Dec.................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1969--Jan..................................... n.a. n.a. n.a. n.a, n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. i Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by ofieri ng price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. 4 See Note to table at bottom of opposite page. Note.—Securities and Exchange Commission estimates of new issues 5 Foreign governments. International Bank for Reconstruction and maturing in more than 1 year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ SECURITY ISSUES A 45 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire­ Net New Retire­ Net issues ments change issues ments change I c n o ve s s .1 t. Other In C v O e S s .1 t. Other In C v O e 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 11,511 12,747 41649 8^098 5,583 3,205 2,134 3,242 3^50 -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—IV............... 9,414 2,863 6,551 5,349 1,426 3,924 2,446 1,605 747 690 1,699 915 1968—1'............... 7,719 3,019 4,700 3,997 1,286 2,711 2,491 1 ,230 821 912 1 ,633 319 IP.............. 8^395 3,933 4,462 5,124 1,308 3,816 1,846 1,424 1 ,053 1 ,572 762 -147 rip............. 8,236 4,111 4,125 4,732 1 ,250 3,482 2,084 1 ,421 949 1,914 1,102 -493 IV............... 10,942 5,168 5,774 5,528 I ,575 3,953 3,432 1 ,982 1 ,032 2,561 2,400 -579 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate facturing and other 2 tation 3 utility cation and financial 4 Period & B n o o nd te s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B n on o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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—IV............... 1 ,637 270 399 207 214 54 846 277 291 120 537 1,698 1968—1.................. 991 -60 191 112 170 -26 956 309 295 31 109 "1,624 II.......... 1,520 -556 375 371 260 10 848 214 524 33 288 '574 Ill.............. 1 ,210 -484 716 -123 300 -62 585 187 491 6 181 "1,119 IV............... 667 -1,171 960 461 257 -71 1,310 152 269 50 491 2,399 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 3 po C si a t s io h n 3 Other Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C si a t s i h o n3 Other 1956.............. 1,347 433 914 9,046 492 8,554 1968—Feb... 451 260 191 41,533 3,409 38.124 1957.............. 1,391 406 984 8,714 523 8,191 Mar... 557 243 314 42,412 3,919 38,493 1958.............. 1,620 511 1,109 13,242 634 12,608 Apr... 618 309 309 46,179 3,923 42,256 May.. 502 366 136 48,054 3,495 44,559 1959.............. 2,280 786 1,494 15,818 860 14,958 June.. 535 374 161 48,426 3,273 45,153 1960.............. 2'097 842 1,255 17,026 973 16,053 July. . 582 344 237 47,342 3,113 44,229 1961.............. 21951 1,160 11791 22,789 980 211809 Aug... 531 309 222 48,470 3,459 45,011 1962.............. 2^99 1,123 1,576 21,271 1,315 19,956 Sept... 494 292 202 51,030 3,747 47,283 Oct.... 653 396 257 51,633 3,384 48,249 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Nov... 688 313 375 54,860 3,413 51,447 1964.............. 31404 11875 1,528 29,116 1,329 27,787 Dec.. . 653 319 354 52,677 3,187 49,490 1965.............. 41359 1,962 2,395 35,'22O 11803 33,417 1966.............. 41671 2,005 21665 34,829 2,971 311858 1969—Jan.... 876 397 479 53,323 3,831 49,492 1967.............. 41670 2', 745 1,927 44,701 2,566 42,135 Feb... 625 379 246 50,512 4,826 45,686 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 □ APRIL 1969 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1966 1967 19681 Industry 1963 1964 1965 1966 1967 IV I II HI IV I II III Manufacturing Total (177 corps.): Sales...................................... 147,380 158,253 177,237 195,738 201,399 51,991 48,585 51,679 48,317 52,818 53,546 57,780 51,493 Profits before taxes....................... 17,337 18,734 22,046 23,487 20,898 6,126 5,153 5,608 4,232 5,867 6,257 6,937 5,831 Profits after taxes.......................... 9,138 10,462 12,461 13,307 12,664 3,466 2,918 3,190 2,381 3,268 3,290 3,425 2,941 Dividends...................................... 5,444 5,933 6,527 6,920 6,989 1,965 1,670 1,701 1,721 1,897 1,710 1 ,734 1,729 Nondurable goods industries (78 corps.): 2 Sales....................................... 55,372 59,770 64,897 73,643 77,969 19,129 18,743 19,535 19,695 19,996 20,225 21,619 21,243 Profits before taxes............ 6,333 6,881 7,846 9,181 9,039 2,232 2,153 2,250 2,209 2,427 2,674 2,680 2,823 Profits after taxes......................... 3,646 4,121 4,786 5.473 5,379 1,352 1,319 1,343 1,313 1,431 1,420 1,286 1,459 Dividends...................................... 2,265 2,408 2,527 2,729 3,027 723 720 756 770 781 742 741 752 Durable goods industries (99 corps.):3 Sales....................................... 92,008 98,482 112,341 122,094 123,429 32,861 29,842 32,144 28,622 32,821 33,322 36,161 30,250 Profits before taxes............... 11,004 11,853 14,200 14,307 11,822 3,895 3,000 3,358 2,024 3,440 3,583 4,256 3,009 Profits after taxes.................. 5,492 6,341 7,675 7,834 6,352 2,115 1 ,599 1,847 1 ,068 1,838 1,870 2,139 1,482 Dividends.............................. 3,179 3,525 4,000 4,191 3,964 1,242 950 945 952 1,117 968 973 977 Selected industries: Foods and kindred products (25 corps.): Sales........................................... 14,301 15,284 16,427 19,038 20,134 5,011 4,963 5,060 5,131 4,980 5,142 5,313 5,289 Profits before taxes................... 1 ,546 1,579 1,710 1,916 1,967 485 447 482 526 512 496 562 606 Profits after taxes...................... 747 802 896 1,008 1,041 259 236 253 284 268 254 259 313 Dividends................................... 448 481 509 564 583 146 148 144 146 145 150 146 146 Chemical and allied products (20 corps.): Sales.............................................. 14,623 16,469 18,158 20,007 20,561 5,072 4,998 5,163 5,116 5,284 5,436 5,702 5,777 Profits before taxes....................... 2,286 2,597 2,891 3,073 2,731 650 694 700 636 701 761 634 708 Profits after taxes......................... 1,182 1,400 1,630 1,737 1,579 386 396 404 363 416 392 325 379 Dividends...................................... 904 924 926 948 960 269 238 235 235 252 236 236 243 Petroleum refining (16 corps.): Sales......................................... 16,043 16,589 17,828 20,887 23,258 5,530 5,390 5,808 5,985 6,075 6,011 6,677 6,234 Profits before taxes..................... 1,487 1,560 1,962 2,681 3,004 726 684 741 744 835 1,071 1,056 1,085 Profits after taxes..................... 1,204 1,309 1,541 1,898 2,038 495 505 504 489 540 592 485 548 Dividends...................................... 608 672 737 817 1 ,079 209 232 280 286 281 253 255 257 Primary metals and products (34 corps.): Sales............................................... 22,116 24,195 26,548 28,558 26,532 7,225 6,801 7,040 6,525 6,166 7,150 7,684 5,467 Profits before taxes....................... 2,178 2,556 2,931 3,277 2,487 810 693 670 477 647 663 846 574 Profits after taxes......................... 1,183 1,475 1,689 1,903 1,506 475 395 411 290 410 375 509 336 Dividends..................................... 734 763 818 924 892 260 222 214 228 228 224 229 231 Machinery (24 corps.): Sales........................................... 21,144 22,558 25,364 29,512 32,721 8,100 7,704 7,933 8,090 8,994 8,213 9,022 8,907 Profits before taxes................... 2,394 2,704 3,107 3,612 3,482 952 868 807 837 970 916 982 1,103 Profits after taxes............... 1,177 1,372 1,626 1,875 1,789 495 421 417 438 513 443 492 498 Dividends...................................... 577 673 774 912 921 244 232 233 227 229 244 244 244 Automobiles and equipment (14 corps.): Sales............................................... 32,927 35,338 42,712 43,641 42,306 12,149 10,413 11,875 8,354 11,664 12,344 13,582 9,686 Profits before taxes....................... 5,004 4,989 6,253 5,274 3,906 1,567 1,050 1,436 216 1,204 1,515 1,823 649 Profits after taxes......................... 2,387 2,626 3,294 2,877 1,999 826 583 782 62 572 785 842 321 Dividends...................................... 1,447 1,629 1,890 1,775 1,567 551 363 365 362 477 362 364 364 Public utility Railroad; Operating revenue............... 9,560 9,778 10,208 10,654 10,366 2,718 2,536 2,628 2,529 2,673 2,610 2,757 2,707 Profits before taxes....................... 816 829 980 1,088 391 268 145 163 83 1 125 205 115 Profits after taxes......................... 651 694 816 902 325 244 121 143 78 -17 HO 174 108 Dividends...................................... 383 438 468 496 539 161 124 156 103 155 114 136 98 Electric power: Operating revenue................ 14,294 15,156 15,816 16,908 17,894 4,246 4,697 4,280 4,406 4,511 5,138 4,580 4,884 Profits before taxes............... 3,735 3,926 4,213 4,395 4,564 1,041 1,279 1,026 1,161 1,099 1 ,284 1 ,018 1,271 Profits after taxes.................. 2,187 2,375 2,586 2,764 2.911 673 799 666 717 729 863 641 764 Dividends............................... 1,567 1,682 1,838 1,932 2,071 505 518 510 509 534 539 555 542 Telephone: Operating revenue............... 9,796 10,550 11,320 12,420 13,311 3,202 3,229 3,312 3,341 3,429 3,486 3,544 3,629 Profits before taxes....................... 2,815 3,069 3,185 3,537 3,694 868 869 923 953 949 971 989 990 Profits after taxes........................ 1,417 1,590 1,718 1,903 1,997 468 472 497 515 513 525 441 493 Dividends...................................... 988 1,065 1,153 1,248 1,363 320 334 337 341 351 351 318 396 1 Manufacturing profits after taxes are partly estimated to reflect a 10 Telephone: Data obtained from Federal Communications Commis­ per cent surcharge each quarter, sion on revenues and profits for telephone operations of the Bell System 2 Includes 17 corporations in groups not shown separately. Consolidated (including the 20 operating subsidiaries and the Long 3 Includes 27 corporations in groups not shown separately. Lines and General Depts, of American Telephone and Telegraph Co.) and for 2 affiliated telephone companies. Dividends are for the 20 operat­ Note.—Manufacturing corporations: Data are obtained primarily from ing subsidiaries and the 2 affiliates. published reports of companies. All series: Profits before taxes are income after all charges and before, Railroads: Interstate Commerce Commission data for Class I line­ Federal income taxes and dividends. haul railroads. Back data available from the Division of Research and Statistics. Electric power: Federal Power Commission data for Class A and B 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

APRIL 1969 □ BUSINESS FINANCE A 47 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Profits In­ Profits Cash Undis­ capital Profits In­ Profits Cash Undis­ capital Year b t e a f x o e r s e c ta o x m es e t a a f x te es r d d e i n v d i­ s tr p i r b o u fi t t e s d co a n l t l s i o o u w n m ­ p­ Quarter b t e a f x o e r s e c ta o x m e e s t a a f x te e r s d d e i n v d i­ s tr p i r b o u f t i e ts d co a t n l i l s o o u n w m ­ p­ ances! ances 1 1961.............. 50.3 23.1 27.2 13.8 13.5 26.2 1967—1. ... 79.9 32.8 47.1 22.5 24.6 41.9 1962.............. 55.4 24.2 31.2 15.2 16.0 30.1 H.... 80.3 33.0 47.3 23.2 24.1 42.9 1963.............. 59,4 26.3 33.1 16.5 16.6 31.8 III... 80.8 33.2 47.6 23.5 24.1 44.1 1964.............. 66.8 28.3 38.4 17.8 20.6 33.9 IV... 85.4 35.1 50.3 22.5 27.9 44.9 1965.............. 77.8 31.3 46.5 19.8 26,7 36.4 1968—1. . .. 88.9 39.8 49.1 23.6 25.5 45.7 1966.............. 85.6 34.6 51.0 21.7 29.3 39.7 IL... 91.8 41.1 50.7 24.4 26.3 46.7 1967.............. 81.6 33.5 48,1 22,9 25.2 43.4 in... 92.7 41.5 51.2 25.2 26.0 47.6 1968*........... 92.3 41.3 51.0 24.6 26.4 47.1 IV".. 95.8 42.9 52.9 25.4 27.6 48.5 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Nel 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.l 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.............................. 180.7 410,2 50.0 17.0 3.9 190.2 126.9 22.3 229.6 3.1 160.4 19.1 46.9 1966 ............................. 190.2 443.4 50.1 15.7 4 5 205.1 144.5 23.6 253.2 4.4 176,2 19.1 53,6 1967—I...................... 192.6 443.9 47.3 14.4 4.4 205.1 148.1 24.8 251.4 4.9 173.5 18.6 54.3 II....................... 193.8 444.9 47.7 11.5 4.6 207.5 149.2 24.3 251.1 5.4 177.0 12.7 55.9 Ill..................... 197,2 452.7 49.1 10.8 4.7 211.5 151.2 25.4 255,4 5.7 178.6 13.5 57.6 IV..................... 201.1 464.0 52.3 12 4 5.1 214.5 153.8 25.9 262,9 5.8 183,6 15,2 58.3 1968—1........................ 206.0 471.4 50.1 14.6 4.8 216.6 156.6 28,7 265.4 6.1 181.9 17.3 60.2 II....................... 209.8 481.9 51.4 13.3 4.7 223.6 159.9 29.1 272.1 6.2 188.0 15.4 62.5 [[I..................... 210.9 492.2 52.8 12.9 4.8 229 5 163.7 28.6 281.3 6.3 193.8 15.6 65.5 IV.................... 214.4 506.9 56.1 13.9 5.1 235.6 166.2 29.9 292.5 6.4 202.2 17.4 66.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Mining u P ti u l b it l i i e c s n C i o ca m ti m on u s ­ Other 1 a ( n S n . u A a . l Durable d N ur o a n b ­ le 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 9J6 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 12.34 1968...................................... 64.08 13 51 12*93 1.42 1 34 4 31 H.54 6.36 12.67 19692....................................... 72.96 15 48 15 17 1.60 1.73 4 83 13.16 7.44 13.56 1967—1................................... 13.59 3.08 3 02 ,32 .41 .70 1.84 1.35 2.87 61.65 . 15.61 3 46 3 34 34 41 1 12 2.46 1.49 2.99 61.50 Ill................................. 15.40 3.33 335 J7 ,35 .98 2.66 L46 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................................... 14.25 2.96 2 82 .36 .37 .98 2.33 1.48 2,93 64.75 ................................ U5.86 3 22 3 28 36 r 36 1 04 2.97 1.51 3.11 r62.60 HI *16.02 3 37 3*25 .34 r,30 1.12 2,96 1.50 3,18 *•63.20 IV................................. 17.95 3 95 3 57 35 30 1.18 3.28 1.86 3.46 65.90 1969„I2r................................ 15.82 3.33 3 17 38 34 1,10 2.73 77 71.65 IP................................ 17.90 3.78 333 .41 .42 1.14 3.42 5.01 70.85 i 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 □ APRIL 1969 MORTGAGE DEBT OUTSTANDING (In billions of dollars) Farm j All properties Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage holders2 commercial properties3 type6 End of Finan­ Finan­ period Al! cial All cial Other All hold­ insti­ Indi­ hold­ insti­ hold­ hold­ FHAers tutions’ U.S. viduals ers tutions ’ ers3 ers Finan, Other Finan, Other VA- Con­ agen­ and Total insti­ hold­ Total insti­ hols­ under­ ven­ cies others tutions’ ers tutions’ ers written tional 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 I 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 1 2.2 6.4 12'2 74 4.7 4.3 265 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 13.4 304.6 212.9 184.3 28 7 91 6 72.5 19 I 81.2 223 4 1966”........ 347.0 280.8 15.8 50.4 23.3 8.4 14.9 323.6 223.6 192.1 31.5 100.0 80.2 19.8 84.1 239.5 1967”........ 369.8 298.8 18,4 52,5 25.5 9. 1 16.3 344.3 236.1 201.8 34.2 108.3 87.9 20.4 88.2 256.1 1966-1 IP.. 343.3 287.2 15.2 49.9 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 15.8 50.4 23.3 8.4 14.9 323.6 223.6 192.1 31.5 100.0 80.2 19.8 84.1 239.5 1967-1”. . . 350.1 282.9 16.4 50.8 23.7 8.5 15.3 326.3 224.9 192.8 32.1 101.5 81.6 19.9 84.4 241.9 IP’.. . 355.8 287.6 16.7 51.5 24.3 8.7 15.6 331.4 227.8 195.3 32.5 103,6 83,6 20,0 85.3 246.1 UP’.. 362.8 293.3 17.5 52.0 24.9 8.9 16.0 337.9 232.0 198.7 33.3 105.9 85.7 20.2 86.4 251.5 IV”.. 369.8 298.8 18.4 52.5 25.5 9.1 16.3 344.3 236.1 201 .8 34.2 108.3 87.9 20.4 88.2 256.1 1968-I». .. 375.3 302.6 19.6 53.1 26.0 9.3 16.7 349.3 239.3 203.9 35.4 HO.O 89.5 20.6 89.4 259.9 II”.. 382.5 308.1 20.6 53,9 26.8 9.6 17.1 355.8 243,3 206.8 36.5 112.4 91.7 20,8 90,7 265,1 HI”.. 389.4 313.5 21.1 54.8 27.3 9.8 17.5 362.1 247.3 209.9 37.4 114.8 93.8 21.0 92.0 270.1 IV”.. 396.9 1 Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by savings trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., are shown on second page following. and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. Other U.S. agencies (amounts small or current separate data not readily Note.-—Based on data from Federal Deposit Insurance Corp., Federal available) included with “individuals and others.” Home Loan Bank Board, Institute of Life Insurance, Depts, of Agricul­ ture and Commerce, Federal National Mortgage Assn., Federal Housing 3 Derived figures; includes debt held by Federal land banks and farm Admin., Public Housing Admin., Veterans Admin,, and Comptroller of debt held by Farmers Home Admin. the Currency. 4 For multifamily and total residential properties, see p, A-50. Figures for first three 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 Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in­ guar­ ven­ Total in­ guar­ ven­ sured anteed tional sured anteed tional (941............................... 4,906 3,292 1 ,048 566 4,812 3,884 900 28 1945............................... 4,772 3'395 856 521 4,208 3,387 797 24 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49,675 32'387 7'702 2,688 21 ,997 14,377 2,911 44,617 40'096 13,791 11,408 14'897 4,469 52 1966............................... 54^380 34’876 7’544 2,599 24,733 16,366 3,138 47,337 42;242 14,500 11,471 16,272 5,041 53 1967............................... 59,019 37,642 7,'709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,722 5,732 117 1968............................... 65,696 41,433 7'926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1966—11........................ 52,306 33,800 7,769 2,654 23,377 15,478 3,028 45,883 41,083 14,047 11,346 15,690 4,747 53 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 16,272 5,041 53 1967—1.......................... 54,531 34,890 7,444 2,547 24,899 16,468 3,173 48,107 42,879 14,723 11,619 16,537 5,176 52 II........................ 55,731 35'487 7,396 2'495 25,596 16,970 3,274 48,893 43,526 14,947 11 ,768 16,811 5,316 51 HI...................... 57’482 36'639 7'584 2 601 26,454 17,475 3,368 49'732 44,094 15,016 11,785 17,293 5,526 112 IV....................... 59 ,’019 37,642 7,709 2’696 27'237 17'931 3,446 50'490 44,641 15,074 11,795 17’772 5'732 117 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 H........................ 61 ',967 39,113 7',678 2,648 28'787 19,098 3,756 51,793 45,570 15,246 11,918 18,406 6'108 115 HI...................... ’’63,779 40^251 7'768 2 ,’657 29'826 19,771 3,757 52,496 46’051 15,367 11,945 18,739 6,329 116 IV....................... 65;696 41,433 7,926 2,708 30',800 20;505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1 Includes loans held by nondeposit trust companies, but not bank States and possessions. First and third quarters, estimates based on FDIC trust depts. data for insured banks for 1962 and part of 1963 and on special F.R. inter­ 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. polations thereafter. For earlier years, the basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from Note.—-Second and fourth quarters, Federal Deposit Insurance Corpo­ the National Assn, of Mutual Savings Banks. ration series for all commercial and mutual savings banks in the United Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 ° 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 u A re - d a g n V u t A e a e r - d ­ Other 1 Farm l Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other Farm 1945 ................................. 976 6,637 5,860 1,394 4 466 766 1961.............................................. 6,785 6,233 1,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962.............................................. 7378 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6'395 26,931 3’400 1963.............................................. 91172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964.............................................. 10,433 9,386 1,812 674 6,900 1,047 55,152 501848 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 591369 12^351 6'201 40,817 51240 1967.............................................. 8,470 7,633 ’757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5^569 [968 ............................................ 7’803 7’,031 725 337 5’969 772 70,071 64,268 12’015 5’982 46 271 5 803 1968—Jan.r................................. 618 545 57 36 452 73 67,733 62,183 12 196 6,136 43 851 5 500 Feb.................................... 527 431 45 25 361 96 67,867 62,292 12,164 6,097 44’031 5,575 Mar. .................................. 640 531 52 28 451 109 68,055 62,421 12’137 6,086 44'198 51634 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 121075 6,047 44,512 5’705 June.................................. 568 519 53 20 446 49 681508 62,777 12,047 6,022 44'708 5’731 July................................... 664 612 59 41 512 52 681708 62,969 12,036 61046 44’,887 5,739 Aug................................... 616 575 71 30 474 41 681909 63,154 12,029 6,034 451091 5’755 Sept............................... • ■ 542 497 58 25 414 45 69,024 63,248 12,003 6,’012 45,233 51776 Oct.. ................... ............ 615 578 84 30 464 37 69’212 63,434 12,003 6’002 45,429 5,778 Nov.................................. 623 589 62 29 498 34 69,407 63'627 11'999 5'993 45,635 5'780 Dec.................................. I ,207 1,123 84 29 1 ,010 84 70’,071 64,268 12,015 5,982 46,271 5,803 1969—Jan..................................... 641 589 59 28 502 52 70,205 64,437 12,003 5,974 46,460 5,768 1 Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals; and for loans outstanding extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures because (1) 1959 and with “other” nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets, whereas year-end million on July 31, 1959. figures represent annual statement asset values, and (2) data for year-end adjustments are more complete. Note,—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Advances outstanding (end of period) Period Ad­ Repay­ Members’ New vances ments deposits Period home Home FHA- VA- Con­ Total Short Long Total 1 con­ pur­ Total 2 in­ guar­ ven­ term 1 term 2 struc­ chase sured anteed tional tion 1945....................... 278 213 195 176 19 46 1945 .. 1,913 181 1,358 5,376 1961....................... 2,882 2,220 2,662 1,447 1,216 1,180 1962....................... 4’111 31294 3,479 <005 1,474 11213 1 1 9 9 6 6 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 7 , , 1 7 5 3 3 3 6 5 , , 1 2 1 1 5 2 7 81 ,3 6 1 5 7 0 7 6 8 8 , , 7 8 7 3 0 4 4 4 , , 1 4 6 7 7 6 7 7 1 ,1 0 5 1 2 0 6 5 7 7 ' , , 5 2 1 8 5 4 1 1 9 9 6 6 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 , , 6 5 0 6 1 5 4 5 , , 2 02 9 5 6 < 5, 7 3 8 2 4 5 2 2 , , 8 8 6 4 3 6 2 1, , ’ 4 9 7 2 9 1 1 11 .1 1 5 9 1 9 1963 .............. 25,173 7,185 10^055 90’944 4'696 6’960 79’288 1964.............. 24,913 6,638 10'538 101,333 4,894 6,683 89,756 1 1 9 9 6 6 6 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 31 ,0 8 0 0 7 4 2 4 , , 8 33 6 5 6 6 5 , , 9 9 3 9 5 7 5 3 , , 0 0 0 7 6 4 2 1 , , 9 9 2 2 3 9 1 1, , 0 0 4 3 3 6 1 1 9 9 6 6 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 4 6 , , 1 9 9 2 2 4 6 31 ,0 6 1 5 3 3 1 7 0 , , 8 8 2 3 8 0 1 11 1 4 0 , , 4 3 2 0 7 6 5 5; , 1 2 4 6 5 9 6 6 , , 1 3 5 9 7 8 1 9 0 8 3 , ’ 7 0 6 01 3 1 1 9 9 6 6 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 2 1 7 5 3 27 4 4 1 ,8 0 6 7 1 6 4 5, , 2 3 5 8 9 6 4 3 ,8 9 6 8 7 5 4 3 0 9 1 2 1 1 , , 4 3 3 82 2 1 19 9 6 6 8 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 21 0 , , 9 1 8 2 3 2 4 4, ’ 9 2 1 43 6 1 9 1 , , 6 21 0 5 4 1 1 2 3 1 0 , , 8 7 0 8 5 2 5 6 ' ’ 7 6 9 5 1 8 6 7 , , 3 0 5 1 1 2 1 1 0 1 9 7 1 '1 6 1 6 2 3 1968--F M e a b r . . . . . . . . . . . . . . . . . . . . . . . . 10 8 1 7 1 1 9 6 5 6 4 4 , , 3 2 4 6 8 9 3 3, , 7 8 3 0 3 6 5 5 4 3 2 6 1 1 , , 1 3 8 0 2 2 1968— M Fe a b r . . . . . * 1 1 , , 4 7 7 87 4 3 4 1 1 0 4 8 7 5 1 0 2 1 1 2 2 2 3 , , 5 3 4 3 8 7 5 5 , , 8 9 5 0 0 0 6 6 , , 4 47 4 6 2 1 1 1 1 0 0 , , 9 2 6 5 1 6 A M p a r y ,. . . . . . . . . . . . . . . . . . . . . . 3 2 8 8 6 2 1 1 1 0 1 8 4 4' ’ 7 5 1 4 9 5 4 41 ,0 1 2 9 6 7 5 5 1 2 9 2 1 1 1 ,2 2 9 7 3 0 A M p a r y .. . . . 2 1 , ,9 1 7 0 3 6 4 51 8 2 0 1,0 9 5 4 0 5 1 1 2 2 5 4 , , 1 2 7 1 3 6 5 6 , , 9 0 6 2 1 6 6 6 , , 5 55 2 9 21 1 1 1 1 2 , , 7 5 3 8 3 8 J J u u n ly e . . . . . . . . . . . . . . . . . . . . . . . 2 3 4 3 5 4 23 7 5 5 4 4 ,8 9 8 8 9 8 4 4, , 5 4 3 0 5 8 4 4 8 5 1 3 1 1 1 J3 1 8 8 2 4 J J u u n ly e . . . . . 1 1 , , 9 8 8 5 3 9 4 4 0 3 0 0 1 1 , , 0 0 7 3 5 8 1 1 2 2 6 5 , , 6 9 1 0 8 0 6 6, , 1 0 7 7 7 9 6 6 , , 6 5 3 9 1 3 1 1 1 1 3 3 , , 2 8 2 1 8 0 S A e u p g t . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 6 8 5 1 1 8 3 8 6 5 4 , , 0 99 2 7 6 4 4 1 ,6 5 0 6 3 1 4 4 2 3 3 7 1 1 1 ,2 1 5 7 1 4 Aug... 1 ,995 414 1,156 127,492 6,279 6,689 114,524 Oct............. 173 164 5,035 4,627 407 1,285 Sept... 1,840 396 984 128,302 6,370 6,753 115,179 Nov............ 155 150 5’040 4,643 397 1,321 Oct.... 1,949 466 995 129,147 6,459 6,845 115,843 Dec............. 301 81 5,259 4,'867 392 11382 N D o ec v . . . . . . 1 1 , , 7 8 2 8 4 6 3 40 9 7 2 8 8 6 6 8 9 1 1 2 3 9 0 , , 8 7 7 8 9 2 6 6, , 6 5 5 2 8 9 6 7, , 0 9 1 1 2 91 1 1 1 6 7 , , 4 1 3 1 1 2 1969-—Jan............. 277 179 5,357 4,975 382 1,110 Feb............. 120 178 5j 298 4,940 358 1,130 1969—Jan... . 1,592 348 783 131,404 6,748 7,074 117,582 Feb. p . 1,590 369 771 132,088 6,856 7,129 118,103 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT □ APRIL 1969 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) All residential Multifamily 1 Governmentunderwritten E pe n r d i o o d f Total Fi c n ia a l n ­ Other Total Fi c n ia a l n ­ Other E pe n r d io o d f Total FHA- VA- t C i v o e o n n n a ­ ­ l insti­ holders insti­ holders Total in­ guartutions tutions sured anteed1 1941............... 24.2 14.9 9.4 5.8 3.6 2.2 1945 ............... 18.6 4.3 4.1 .2 14.3 1945............... 24.3 15.7 8.6 5.7 3.5 2.2 1963............... 182.2 65.9 35.0 30.9 116.3 1963.............. 211.2 176.7 34.5 29.0 20.7 8 3 1964............... 197.6 69.2 38.3 30.9 128.3 1964.............. 231.1 195.4 35.7 33.6 25.1 8.5 1965....2..1...2....9.... 73.1 42.0 31.1 139.8 1965.............. 250.1 213.2 36.9 37.2 29.0 8.2 1966................ 223.6 76.1 44.8 31.3 147.6 1966*............ 263.8 223.7 40.1 40.1 31.5 8.6 1967P............. 236.1 79.9 47.4 32.5 156.1 1967”............ 279.8 236.6 43.2 43.7 34.7 9.0 1966—11......... 219.6 74.7 43.7 31.0 145.2 1966—IP.... 258.6 220.1 38.5 39.0 30.5 8.5 in....2..2..1.9 75.4 44.4 31.0 146.5 HIP... 261.5 222.1 39.4 39.6 31.0 8.6 IV....2...2.3.6 76.1 44.8 31.3 147.6 IV^... 263.8 223.7 40.1 40.1 31.5 8.6 1967—Ip.....2..2.4.9 76.4 45.2 31.2 148.4 1967—P....... 265.7 225.0 40.7 40.8 32.2 8.6 IP 227.8 77.2 45.7 31.5 150.6 IP.... 269.5 228.3 41.2 41.7 32.9 8.8 IIP.. 232.0 78.3 46.6 31.7 153.7 IIP... 274.6 232.5 42.1 42.6 33.8 8.8 IV**.... 236.1 79.9 47.4 32.5 156.1 IIP... 279.8 236,6 43.2 43.7 34.7 9.0 1968—P.....2..3.9.3 81.0 48.1 32.9 158.3 1968—P. ... 283.5 239.0 44,5 44.2 35.1 9.1 IP 243.3 82,1 48.7 33.4 161.2 IP . . . 288.5 242.8 45.7 45.2 36.0 9.2 IIP.. .. 247.3 83.2 49.6 33.6 164.1 IIP. .. 293.3 246.6 46.7 46. I 36.7 9.3 _____J - 1 Structures of 5 or more units. For 1- to 4-family mortgage debt see accounts held by private investors under repurchase second preceding page. agreement. Note.—Based on data from same source as for “Mortgage Debt Out­ Note.—For total debt outstanding, figures are standing” table (second preceding page). FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank Board, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE DELINQUENCY RATES ON HOME MORTGAGES (In millions of dollars) (Per 100 mortgages held or serviced) FHA-insured VA-guaranteed Loans not in foreclosure but delinquent for— Loans in Mortgages Mortgages End of period fore­ Period Prop­ closure Pro­ erty 90 days Total Ex­ jects1 im­ TotaP Ex­ Total 30 days 60 days or more New isting prove­ New isting homes homes ments2 homes homes 1963............... 3.30 2.32 .60 .38 .34 1964............... 3.21 2.35 .55 .31 .38 1945............ 665 257 217 20 171 192 1965............... 3.29 2.40 .55 .34 .40 1963 ............ 7,216 1,664 3,905 843 804 3,045 1,272 1 770 1966............... 3.40 2.54 .54 .32 .36 1964............ 8,130 1'608 4,965 895 663 2 846 1 ^023 1,821 1967............... 3.47 2.66 .54 .27 .32 1965............ 8’689 1,705 5,760 591 634 2 652 ’876 1,774 1968............... 3.17 2.43 .51 .23 .26 1966............ 7,320 1,729 4,366 583 641 2 600 980 1 618 1965—11........ 3.00 2.18 .52 .30 .38 1967............ 7,150 1,369 4,516 642 623 3*405 1 143 2*259 III.... 3,20 2.30 .56 .34 .38 1968............ 8^275 1,572 4,924 1 123 656 3 *774 1 430 2*343 IV. . . . 3.29 2.40 .55 .34 .40 1968—Feb... 573 124 312 100 36 280 111 169 1966—1.......... 3.02 2.13 .55 .34 .38 Mar.. 535 120 314 62 39 267 115 152 11........ 2.95 2.16 .49 .30 .38 Apr.. 603 131 340 80 53 265 110 156 III.. .. 3.09 2.25 .52 .32 .36 May. 686 121 374 131 60 280 112 168 IV. . . . 3.40 2.54 .54 .32 .36 June. 674 123 371 122 58 241 98 143 July.. 712 135 438 72 66 327 120 207 1967—1.......... 3.04 2.17 .56 .31 .38 Aug.. 752 135 460 94 63 341 122 218 II........ 2.85 2.14 .45 .26 .34 Sept.. 727 135 453 78 61 322 111 211 Ill. 3.15 2.36 .52 .27 .31 Oct... 869 158 549 95 67 360 122 237 IV.... 3.47 2.66 .54 .27 .32 Nov.. 749 126 473 101 49 377 138 239 Dec.. 702 117 409 118 58 365 136 229 1968—1.......... 2,84 2.11 .49 .24 .32 II........ 2.89 2.23 .44 .22 .28 1969—Jan... 762 134 474 105 48 369 145 225 III. ... 2.93 2.23 .48 .22 .26 Feb.. 614 106 388 80 39 296 114 182 IV.. .. 3.17 2.43 .51 .23 .26 1 Monthly figures do not reflect mortgage amendments included in annual Note.—Mortgage Bankers Association of America data from totals. reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ 2 Not ordinarily secured by mortgages. ventional mortgages held by more than 400 respondents, including 3 Includes a small amount of alteration and repair loans, not shown separ­ mortgage bankers (chiefly), commercial banks, savings banks, and ately; only such loans in amounts of more than $1,000 need be secured. savings and loan associations. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ REAL ESTATE CREDIT A 51 GOVERNMENT NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY ASSOCIATION ACTIVITY (In millions of dollars) (In millions of dollars) Mortgage Mortgage Mortgage holdings transactions Com­ Mortgage holdings transactions Com­ (during mit­ (during mit­ End of period) ments End of period) ments period FHA- VA- un­ period FHA- VA- un­ Total in­ guar­ dis­ Total in­ guar­ dis­ sured anteed Pur­ Sales bursed sured anteed Pur­ Sales bursed chases chases 1965.......................... 2,212 1 ,540 671 156 154 332 1965.......................... 2,519 1,864 656 757 47 462 1966......................... 2,667 2,062 604 620 491 1966......................... 4’396 3,345 1 .051 2,081 214 1967 ....................... 3'348 2,756 592 860 1,171 1967.......................... 5 '522 4’048 1,474 1,400 12 501 1968.......................... 4,220 3,569 651 1 ,089 i 1,266 1968.......................... 7,167 5,121 2'046 1 ’944 1,287 1968—Feb................ 3,526 2,913 613 97 1 1,159 1968—Feb............ 5,999 4,356 1,643 245 335 Mar......... 3,635 3,010 626 127 1,118 Mar................ 6,165 4,465 1,700 189 332 Apr................ 3,721 3,087 633 103 1,126 Apr............ 6,325 4,570 1,755 186 328 May......... 3’805 3,166 639 103 1’135 May.............. 6,477 4,671 1,806 177 477 June............... 3'880 3,235 646 95 1,158 June............... 6'623 4,767 1,856 173 601 July.............. 3,949 3’298 652 86 1 170 July................ 6'707 4,820 1.887 108 842 Aug,.............. 4,018 3,361 656 86 1 ,’205 Aug............... 6^780 4,867 1,913 99 1,014 Sept ............ 4^063 3,406 657 1,215 Sept............... 6,844 4,909 1,935 89 1,085 Oct................. 4,125 3’468 657 82 1,225 Oct............... 6,943 4,975 1,968 126 1,150 Nov................ 4^166 3,511 655 58 1 ,248 Nov......... 7'048 5,045 2’,003 132 1 ,236 Dec ............. 4,220 3,569 651 73 1 ,266 Dec................ 7,167 5,121 2,046 146 1,287 1969_jail............. 4 255 3,607 648 54 C1 297 1969—Jan................. 7,334 5,227 2,107 193 1,283 Feb................. 4,301 3,657 644 63 .....1..,.2..9..6 Feb................ 7,510 5,345 2,165 201 .....1 ..,’.4..0.6 Note.—Government National Mortgage Assn. data. Data prior to Note,—Federal National Mortgage Assn. data. Data prior to Sept. Sept. 1968 relate to Special Assistance and Management and Liquidating 1968 relate to secondary market portfolio of former FNMA. portfolios of former FNMA and include mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conven­ tional mortgage loans acquired by former FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Com­ munity Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (Per cent) Primary market Se m co ar n k d e a t ry Mortgage amounts co Im m p m li i c tm it e y n ie t ld p , e r b io y d (in months) FHA series FHLBB series Yield Auction Accepted Period (effective rate) on FHA- date New insured homes new By commitment (U.S. homes Offered period (in months) 3 6 12-18 New Existing average) Total homes homes 3 6 12-18 1965..................5....8.1 5.95 5.83 5.47 1966..................6..25 6.41 6.40 6.38 In millions of dollars In percent 1967..................6....4..6 6.52 6.53 6.55 ......6.....9..7.......... 7.03 7.12 7.21 1969 1968-—Mar....... 6.64 6.72 6.80 6.83 Apr.............. 6.71 6.77 6.90 6.94 82.1 59.8 16.9 28.4 14.5 7.63 7.66 7.48 May....... 6.84 6.95 7.15 13 127.5 57.9 8.1 36.7 13.0 7.67 7.68 7.52 June........... 7.03 7.12 7.25 7.52 21......... 124.3 61.4 9.8 39.1 12.5 7.96 7.72 7.54 July........... 7.17 7.23 7.30 7.42 27......... 232,9 61.0 8.4 38.6 14.1 7.82 7.86 7.66 Aug............ 7.24 7.26 7.30 7.35 Sept............ 7.24 7.25 7.30 7.28 Feb. 3......... 320.6 80.0 5.3 36.0 38.8 7.98 7.99 7.82 Oct........ 7.23 7.22 7.25 7.29 10......... 285.7 102.4 6.8 46.2 49.4 8,01 8.05 7.91 Nov....... 7.21 7,21 7.30 7.36 17......... 226.7 100.9 6.9 38.4 55.6 8.04 8.09 7.95 Dec............ 7.23 7.23 7.40 7.50 24......... 167.2 100.1 11.2 48.7 40.1 8.09 8.14 8.00 1969-—Jan......... .. 7.30 7.32 7.55 118.9 90.5 H.5 38.1 41.0 8.13 8.17 8.02 Feb........ p7.39 "7.42 7.60 7.99 10......... 127.1 84.7 7.5 37.0 40.2 8.14 8.13 8.00 Mar....... 17......... 132.7 88.5 3.1 45.6 39.8 8.09 8.08 7.95 24...... 220.9 84.1 3.5 47.4 33.3 8.10 8.09 7.96 Note.—Annual data are averages of monthly figures. The Apr. 1......... 182.9 93.1 4.6 47.2 41.4 8.10 8.H 7.98 FHA data are based on opinion reports submitted by field offices 7 175.9 102.5 8.2 57.8 36.5 8.12 8.13 8.01 on prevailing local conditions as of the first of the succeeding 14. . (100.0) month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an Note.—Implicit secondary market yields are gross—before deduction of 50assumed prepayment at the end of 15 years. Gaps in the data basis-point fee paid for mortgage servicing. They reflect the average accepted bid are due to periods of adjustment to changes in maximum per­ price for Government-underwritten mortgages after adjustment by Federal Reserve missible contract interest rates. The FHA series on average to allow for FNMA commitment fees and FNMA stock purchase and holding contract interest rates on conventional first mortgages in primary requirements, assuming a prepayment period.of 15 years for 30-year loans. Com­ markets are unweighted and are rounded to the nearest 5 basis mitments for 12-18 months are for new homes'only. . t points. The FHLBB effective rate series reflects fees and charges Total accepted shown in parenthesis for most recent week indicates FNMA as well as contract rates (as shown in the table on conventional announced limit before the “auction” date. first mortgage terms, p. A-33) and an assumed prepayment at end of 10 years. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 52 CONSUMER CREDIT □ APRIL 1969 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1939. 7,222 4,503 1,497 I ,620 298 1,088 2,719 787 1,414 518 1941. 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1962. 63,821 48,720 19,381 12,627 3,298 13,414 15,101 5 456 5,684 3,961 1963. 71,739 55,486 22,254 14,177 3,437 15,618 16,253 6,101 5,903 4,249 1964. 80,268 62,692 24,934 16,333 3,577 17,848 17,576 6,874 6,195 4,507 1965. 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966. 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 1967. 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 1968. 113,191 89,890 34,130 24,899 3,925 26,936 23,301 9,138 7,755 6,408 1968--Feb............................... 100,771 80,233 30,682 21,767 3,708 24,076 20,538 8,484 5,859 6,195 Mar.............................. 100,981 80,474 30,942 21,644 3,688 24,200 20,507 8,529 5,710 6,268 Apr.............................. 102,257 81,328 31,331 21,841 3,697 24,459 20,929 8,636 6,026 6,267 May............................. 103,411 82,312 31,818 22,011 3,746 24,737 21,099 8,663 6,276 6,160 June............................. 104,620 83,433 32,364 22,248 3,769 25,052 21,187 8,674 6,368 6,145 July.............................. 105,680 84,448 32,874 22,452 3,808 25,314 21,232 8.695 6,457 6,080 Aug............................. 107,090 85,684 33,325 22,777 3,857 25,725 21,406 8,774 6,574 6,058 Sept.............................. 107,636 86,184 33,336 22,988 3,881 25,979 21,452 8,868 6,550 6,034 Oct............................... 108,643 87,058 33,698 23,248 3,910 26,202 21,585 8,943 6,692 5,950 Nov.............................. 110,035 87,953 33,925 23,668 3,931 26,429 22,082 9,024 6,964 6,094 Dec.............................. 113,191 89,890 34,130 24,899 3.925 26,936 23,301 9,138 7,755 6,408 1969--Jan............................... 112,117 89,492 34,013 24,682 3,886 26,911 22,625 9,038 7,097 6,490 Feb............................... UI tS69 89,380 34,053 24,404 3,875 27,048 22,189 9,050 6,403 6,736 1 Holdings of financial institutions; holdings of retail outlets are in- loans. For back figures and description of the data, see “Consumer Credit,” eluded in “other consumer goods paper.” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- an^ December 1968 Bulletin, pp. 983-1003. hold, family, and other personal expenditures, except real estate mortgage INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Sales Con­ Auto­ Other Total mercial finance Credit sumer Other1 Total mobile retail banks COS. unions finance * dealers2 outlets 1939. 4,503 3,065 1,079 1,197 132 657 1,438 123 1,315 1941. 6,085 4,480 1,726 1,797 198 759 1,605 188 1,417 1945. 2,462 1,776 745 300 102 ............6..2..9.. 686 28 658 1962. 48,720 41,878 19,005 11,405 4,875 4,765 1,828 6,842 345 6,497 1963. 55,486 47,819 22,023 12,630 5,526 5,582 2,058 7,667 351 7,316 1964. 62,692 53,898 25,094 13,605 6,340 6,492 2,367 8,794 329 8,465 1965. 71,324 61,533 28,962 15,279 7,324 7,329 2.639 9,791 315 9,476 1966. 77,539 66,724 31,319 16,697 8,255 7,663 2,790 10,815 277 10,538 1967. 80,926 69,490 32,700 16,838 8,972 8,103 2,877 11,436 285 11,151 1968.................................* • • • 89,890 77,457 36,952 18,219 10,178 8,913 3,195 12,433 320 12,113 1968--Feb............................... 80,233 69,439 32,839 16,713 8,899 8,071 2,917 10,794 286 10,508 Mar............................. 80,474 69,840 33,082 16,759 8,975 8,091 2,933 10,634 289 10,345 Apr............................... 81,328 70,600 33,562 16,868 9,109 8,144 2,917 10,728 293 10,435 May............................. 82,312 71,560 34,079 17,010 9,271 8,175 3,025 10,752 298 10,454 June............................. 83,433 72,610 34,585 17,239 9,461 8,302 3,023 10,823 303 10,520 July.............................. 84,448 73,573 35,103 17,448 9,574 8,397 3,051 10,875 308 10,567 Aug.............................. 85,684 74,690 35,672 17,670 9,739 8,490 3,119 10,994 313 10,681 Sept.............................. 86,184 75,114 35,923 17,680 9,851 8,530 3,130 11,070 313 10,757 Oct.............................. 87,058 75,871 36,352 17,823 9,962 8,588 3,146 11,187 317 10,870 Nov................... 87,953 76,446 36,560 17,960 10,049 8,685 3,192 11,507 319 11,188 Dec............................... 89,890 77,457 36,952 18,219 10,178 8,913 3,195 12,433 320 12,113 1969--Jan................................ 89,492 77,360 37,005 18,175 10,101 8,879 3,200 12,132 319 11,813 Feb............................... 89,380 77,577 37,056 18,219 10,153 8,896 3,253 11,803 319 11,484 i Consumer finance companies included with “other” financial insti­ dealers is included with “other retail outlets.” tutions until 1950. See also Note to table above. 2 Automobile paper only; other instalment credit held by automobile Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ CONSUMER CREDIT A 53 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions o£ dollars) Automobile Repair paper Other and Other Repair con­ mod­ Per­ Auto­ con­ and Per­ End of period Total sumer erniza­ sonal End of period Total mobile sumer modern­ sonal Pur­ goods tion loans paper goods ization loans chased Direct paper loans paper loans 1939........................ 1,079 237 178 166 135 363 1939............................... 1,197 878 115 148 56 1941......................... 1,726 447 338 309 161 471 1941............................... 1,797 1,363 167 201 66 1945........................ 745 66 143 114 110 312 1945 ............................... 300 164 24 58 54 1962......................... 19,005 6,184 3,451 2,824 2,261 4,285 1962............................... 11,405 7,251 2,465 213 1,476 1963......................... 22,023 7,381 4,102 3,213 2,377 4J95O 1963 ............................... 12,630 7,922 2,699 214 1,795 1964......................... 25^094 8,691 4^734 3,670 2,457 5,542 1964............................... 13,’605 8,285 3,022 207 21091 1965......................... 28,962 10,209 5,659 4,166 2,571 6,357 1965 ............................. 15,279 9,068 3,556 185 2,470 1966......................... 31,319 11,024 5,956 4,681 2,'647 7,011 1966.............................. 16’697 9,572 4,256 151 2,718 1967......................... 32,700 IO;927 6,267 5,126 2,629 7'751 1967 ................... 16,838 9,252 4,518 114 21954 1968........................ 36,952 12,213 7,105 6',060 2',719 8,855 1968............................... 18'219 9,986 4,849 74 31310 1968—Feb.............. 32,839 10,927 6,345 5,173 2,563 7,831 1968 Feb..................... 16,713 9,162 4,483 104 2,964 Mar.............. 33,082 11,013 6,437 5,199 2,547 7,886 Mar.................... 16,759 9,208 4,479 99 2,973 Apr.............. 33,562 11,161 6,537 5'278 2,562 8’024 Apr..................... 16^868 9,292 4,492 93 2,991 May............. 34,079 11,351 6,658 5'358 2,585 8,127 May.................... 17,010 91388 4,528 88 3,006 June............. 34,585 Tl/45 6,772 5,443 2,608 8,217 June................... 17,239 9^544 4,582 84 3,029 July,........... 35,103 11,744 6,863 5'559 2i 639 8; 298 July..................... 17'448 9'709 41596 82 3,061 Aug.............. 35,672 11,953 6,924 5,668 2,675 8,452 17,670 9,812 4,663 73 3,122 Sept............. 35,923 11,980 6,916 51743 2,697 8,587 Sept.................... 17,680 9^758 41695 69 3,158 36^352 12,143 7,000 5’812 2,716 8^681 Oct..................... 17,823 9,823 41737 74 3,189 Nov.. . 36,560 12,190 7'063 5'855 2'723 8’,729 Nov................... 17,960 9',898 41778 74 3,210 Dec.............. 36,952 12,213 7,105 6,060 2'719 8^855 Dec..................... 18,219 9,986 41849 74 3,310 1969—Jan............... 37,005 12,160 7,108 6,135 2,692 8,910 1969—Jan...................... 18,175 9,951 4,857 71 3,296 Feb............... 37,056 12,153 7^117 6,168 2,676 8,942 Feb..................... 18,219 9,962 41867 71 3,319 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 Ioans End of period Total mobile sumer modern­ sonal paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ cial cial Retail Credit 1939 789 81 24 15 669 banks insti­ outlets cards1 1941 957 122 36 14 785 tutions 1945 731 54 20 14 643 1962 11,468 2,150 841 824 7,653 1939 ... 2 719 625 J 62 1,414 518 1963 13,166 2'498 949 846 8 873 1941 .......... 3,087 693 152 1,645 597 1964 15,199 2,895 1,176 913 lo^is I945 ........... 3 203 674 72 1,612 845 1965 17,292 3,368 1,367 972 11,585 1962............... 15,101 4,690 766 5,179 505 3,961 1966 18,708 3,727 1 '503 1,020 12 458 1963............... 16,253 5^205 896 5,344 559 4,249 1967 19,952 3^993 1,600 1,046 13^313 1964............... 17,576 5,950 924 5,587 608 4,507 1968 22'286 4,506 1 ,877 1,132 14 771 1965............... 18,990 6,690 981 5,724 706 4,889 1968-—Feb..................... 19,887 3,962 1,603 1,041 13,281 1966............... 20,004 946 1,026 5,812 874 5,346 Mar..................... 19,999 3,995 1 '621 1,042 13,341 1967.......... 21,206 7,’340 1 ,088 5,939 1,029 5,810 Apr..................... 20,170 4,048 1,636 1,042 13,444 1968............... 23,301 7'975 1,163 6,450 1 ,305 6,408 May.................... 20,471 4,123 1,671 1 '073 13,604 June................... 20j786 4,200 1 ,703 1,077 13,806 1968—Feb.... 20,538 7,375 1,109 4,842 1,017 6,195 July..................... 21,022 4,250 1,730 1,087 13,955 Mar,. . 20,507 7,416 1,113 4,698 1,012 6,268 Aug..................... 21,348 4,323 1 '765 1,109 14,151 Apr.... 20,929 7,526 1,110 5,005 1,021 6,267 Sept.. .................. 21,511 4,369 1 '793 1,115 14,234 May... 21,099 7,526 1,137 5,254 1,022 6,160 Oct...................... 21,696 4,415 1 ,829 1,120 14,332 June... 21,187 7,546 1,128 5,278 1,090 6,145 Nov,.................. 21,926 4^455 1,847 1,134 14^490 July... 21,232 7,565 1,130 5,297 1,160 6,080 Dec..................... 22,286 4’506 1 '877 1,132 14,771 Aug.... 21,406 7,627 1,147 5,329 1,245 6,058 Sept.. . 21,452 7,719 1,149 5,283 1,267 6,034 1969-—Jan...................... 22,180 4,475 1 ,877 1,123 14,705 Oct.... 21,585 7,794 1,149 5,424 1,268 5,950 Feb..................... 22;302 4’,502 1 ;885 IJ28 14,787 Nov..,. 22,082 7,857 1,167 5,670 1,294 6,094 Dec.... 23,301 7,975 1,163 6,450 1,305 6,408 Note.—Institutions represented are consumer finance companies, credit 1969—Jan.. . . 22,625 7,878 1,160 5,763 1,334 6,490 unions, industrial loan companies, mutual savings banks, savings and Feb.... 22,189 7,877 1 ,173 5,087 1 ,316 6,736 loan assns., and other lending institutions holding consumer instalment credit. See also Note to first table on previous page. 1 Service station and miscellaneous credit-card accounts and home­ heating-oil accounts. Bank credit card accounts outstanding are included in estimates of instalment credit outsanding. 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 □ APRIL 1969 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A J N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.AJ N.S.A. Extensions 1962. 56,191 19,694 15,701 2,084 18,710 1963 63,591 22,126 17,920 2,186 ......2..1..,.3..5..9.. 1964. 70,670 24,046 20,821 ........2..,.2..2...5.. 23,578 1965 .................................... 78,586 27,227 22,750 2,266 26,343 1966. 82,335 27,341 25,591 2,200 27,203 1967. 84,693 26,667 26,952 2,113 28,961 1968. 97,053 ................3..1,424 .......3..0..,.5..9..3.. 2,268 32,768 1968--Feb............................... 7,847 6,716 2,559 2,296 2,458 1 ,925 184 140 2,646 2,355 Mar.............................. 7,903 7,501 2,605 2,565 2,531 2,295 183 161 2,584 2,480 Apr.............................. 7,863 8,219 2,509 2,764 2,597 2,533 189 189 2,568 2,733 Way............................. 8,033 8,377 2,590 2,853 2,535 2,520 197 236 2,711 2,768 June................... 8.003 8,115 2,570 2,735 2,536 2,441 179 194 2,718 2,745 July.............................. 8,247 8,738 2,673 2,974 2,622 2,631 195 228 2,757 2,905 Aug.............................. 8,187 8,502 2,684 2,774 2,483 2,531 185 225 2,835 2,972 Sept.............................. 8,416 7,682 2,783 2,354 2,560 2,462 196 199 2,877 2,667 Oct............................... 8,533 8,687 2,782 2,917 2,645 2,752 202 211 2,904 2,807 Nov.............................. 8,288 8,166 2,681 2,546 2,640 2,739 191 190 2,776 2,691 Dec.............................. 8,277 9,568 2,592 2,489 2,656 3,608 192 163 2,837 3,308 1969-—Jan............................... 8,371 7,557 2,661 2,369 2,654 2,449 179 137 2,877 2,602 Feb............................... 8,414 6,971 2,716 2,344 2,598 1 ,985 201 149 2,899 2,493 Repayments 1962. 51,360 17,447 14,935 2,010 16,969 1963. 56,825 19,254 16,369 2,046 19,156 1964. 63,470 21,369 18,666 2,086 21,349 1965. 69,957 23,543 20,518 2,116 23,780 I960. 76,120 25,404 23,178 2,110 25,428 1967. 81,306 26,499 25,535 2,142 27,130 1968. 88,089 .................. 28,018 28,089 2,132 29,850 1968--Feb............................... 7,111 6,862 2,275 2,193 2,269 2,275 173 166 2,394 2,228 War.............................. 7,281 7,260 2,316 2,305 2,372 2,418 185 181 2,408 2,356 Apr.............................. 7,222 7,365 2,297 2,375 2,340 2,336 176 180 2,409 2,474 Way............................. 7,301 7,393 2,327 2,366 2,312 2,350 184 187 2,478 2,490 June............................. 7,287 6,994 2,289 2,189 2,324 2,204 175 171 2,499 2,430 July.............................. 7,390 7,723 2,352 2,464 2,374 2,427 181 189 2,483 2,643 Aug.............................. 7,253 7,266 2,327 2,323 2,209 2,206 170 176 2,547 2,561 Sept.............................. 7,701 7,182 2,482 2,343 2,428 2,251 179 175 2,612 2,413 Oct............................... 7,586 7,813 2,391 2,555 2,451 2,492 177 182 2,567 2,584 Nov.............................. 7,454 7,271 2,363 2,319 2,388 2,319 175 169 2,528 2,464 Dec,................ 7,502 7,631 2,357 2,284 2,422 2,377 175 169 2,548 2,801 1969--Jan............................... 7,730 7,955 2,467 2,486 2,442 2,666 173 176 2,648 2,627 Feb............................... 7,616 7,083 2,468 2,304 2,352 2,263 172 160 2,624 2,356 Net change in credit outstanding 2 1962. 4,831 2,247 766 74 1,741 1963. 6,766 2,872 1,551 140 2,203 1964. 7,200 .................. 2,677 .................. 2,155 139 2,229 1965. 8,629 3,684 2,232 150 2,563 1966. 6,215 1 ,937 2,413 90 1,775 1967. 3,387 168 1,417 -29 1,831 1968. 8,964 ................. 3,406 .................. 2,504 136 2,918 1968--Feb............................... 736 -146 284 103 189 -350 11 -26 252 127 War.............................. 622 241 289 260 159 -123 -2 -20 176 124 Apr............................... 641 854 212 389 257 197 13 9 159 259 May............................. 732 984 263 487 223 170 13 49 233 278 June............................. 716 1,121 281 546 212 237 4 23 219 315 July.............................. 857 1,015 321 510 248 204 14 39 274 262 Aug.............................. 934 1,236 357 451 274 325 15 49 288 411 Sept............................. 715 500 301 11 132 211 17 24 265 254 Oct............................... 947 874 391 362 194 260 25 29 337 223 Nov.............................. 834 895 318 227 252 420 16 21 248 227 Dec.............................. 775 1,937 235 205 234 1,231 17 -6 289 507 1969--Jan............................. 641 -398 194 -117 212 -217 6 -39 229 -25 Feb............................... 798 -112 248 40 246 -278 29 -11 275 137 1 Includes adjustments for differences in trading days. purchases and sales of instalment paper, and certain other transac­ 3 Net changes in credit outstanding are equal to extensions less tions may increase the amount of extensions and repayments repayments. without affecting the amount outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often Credit,” Section 16 (New) of Supplement to Banking and Monetary include financing charges. Renewals and refinancing of loans. Statistics, 1965, and pp. 983-1003 of the Bulletin for December 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ CONSUMER CREDIT A 55 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Sales finance Other financial Total Commercial banks companies institutions Retail outlets Period | N.S.A. S.A.i N.S.A. S.AJ N.S.A. S.A.> N.S.A. S.A.l S.A.l N.S.A. Extensions 1962 56,191 20,474 11,269 14,787 9,659 1963 63,591 23,344 12,152 16,768 11,327 1964 70,670 25,950 .................. 12,613 .......1..8..,.7..9..7.. .......1..3..,.3..1..0. 1965. 78,586 29,528 13,722 20,906 i4,430 1966. 82,335 30,073 14,278 21,490 16,494 1967. 84,693 30,850 13,833 22,574 17,436 1968 97,053 36,332 15,909 25,777 19,035 1968--Feb............................... 7,847 6,716 2,918 2,617 1,282 1,117 2,085 1,835 ,562 1,147 Mar.............................. 7,903 7,501 2,950 2,845 1,337 1,251 2,025 1,964 ,591 1,441 Apr.............................. 7,863 8,219 2,910 3,194 1,290 1,355 2,021 2,099 ,642 1,571 May............................. 8,033 8,377 2,980 3,233 1 ,332 1,369 2,157 2,241 ,564 1,534 June............................. 8,003 8,115 2,938 3,030 1,302 1.358 2,177 2,231 ,586 1,496 July.............................. 8,247 8,738 3,018 3,343 1,366 1,495 2,190 2,307 ,673 1,593 Aug.............................. 8,187 8,502 3,066 3,245 1,289 1,329 2,248 2,344 ,584 1,584 Sept.............................. 8,416 7,682 3,284 2,953 1,349 1.217 2,236 2,043 ,547 1,469 Oct............................... 8,533 8,687 3,252 3,306 1,367 1,437 2,309 2,246 ,605 1,698 Nov.............................. 8,288 8,166 3,111 2,877 1,411 1,368 2,139 2,139 ,627 1,782 Dec.............................. 8,277 9,568 3,139 3,094 1 ,362 1,535 2,208 2,571 ,568 2,368 1969-—Jan............................... 8,371 7,557 3,135 2,908 1,381 1 ,227 2,250 1,977 1,605 1,445 Feb............................... 8,414 6,971 3,155 2,728 1,419 1,192 2,315 1,972 1 ,525 1 ,079 Repayments 1962. 51,360 18,468 10,200 13,455 9,237 1963. 56,825 20,326 10,927 15,070 10,502 1964. 63,470 22,971 ........... • • • 11,638 .......... 16,764 .......1..2..,.0..9..7.. 1965. 69,957 25,663 12,048 18,813 13,433 1966. 76,120 27,716 12,860 20,074 15,470 1967. 81,306 29,469 13,692 21,330 16,815 1968. 88,089 32,080 14,528 23,443 18,038 1968--Feb............................... 7,111 6,862 2,572 2,488 1,169 1,130 1,888 1,750 1.482 1,494 Mar.............................. 7,281 7,260 2,641 2,602 1,192 1,205 1,885 1,852 1.563 1,601 Apr.............................. 7,222 7,365 2,643 2,714 1,174 1 ,246 1,887 1,928 1,518 1,477 May............................ 7,301 7,393 2,653 2,716 1,222 1,227 1,939 1,940 1 .487 1,510 June............................. 7,287 6,994 2,666 2.524 1,164 1 ,129 1,957 1,916 1.500 1,425 July.............................. 7,390 7,723 2,662 2,825 1 ,258 1 ,286 1,942 2,071 1.528 1 ,541 Aug.............................. 7,253 7,266 2,610 2,676 1,156 1,107 2,023 2,018 1.464 1 ,465 Sept.............................. 7,701 7,182 2,849 2,702 1,323 1,207 2,026 1,880 1 ,503 1 ,393 Oct................. 7,586 7,813 2,764 2,877 1,230 1,294 2,052 2,061 1,540 1 ,581 Nov.............................. 7,454 7,271 2,769 2,669 1,254 1 ,231 1,950 1,909 1,481 1,462 Dec.............................. 7,502 7,631 2,761 2,702 1,215 1,276 2,019 2,211 1 ,507 1,442 1969--Jan............................... 7,730 7,955 2,812 2,855 1,282 1,271 2,082 2,083 1,554 1,746 Feb............................... 7,616 7,083 2,869 2,677 1,231 1 ,148 2,066 1 ,850 1 ,450 1 ,408 Net change in credit outstanding 2 1962. 4,831 1,997 1,078 1,332 422 1963. 6,766 3,018 1,225 1,698 825 1964. 7,200 ................. 3,065 ............9..7.5... ........2..,.0..3..3... 1,127 1965. 8,629 3,865 1,674 2,093 997 1966. 6,215 2,357 1,418 1,416 1 ,024 1967. 3,387 1,381 141 1,244 621 1968. 8,964 4,252 1 ,381 2,334 997 1968--Feb............................... 736 -146 346 129 113 -13 197 85 80 -347 Mar.............................. 622 241 309 243 145 46 140 112 28 -160 Apr.............................. 641 854 267 480 116 109 134 171 124 94 May............................. 732 984 327 517 110 142 218 301 77 24 June............................. 716 1,121 272 506 138 229 220 315 86 71 July.............................. 857 1,015 356 518 108 209 248 236 145 52 Aug.............................. 934 1,236 456 569 133 222 225 326 120 119 Sept.............................. 715 500 435 251 26 10 210 163 44 76 Oct............................... 947 874 488 429 137 143 257 185 65 117 Nov.............................. 834 895 342 208 157 137 189 230 146 320 Dec.............................. 775 1,937 378 392 147 259 189 360 61 926 1969--Jan............................... 641 -398 323 53 99 -44 168 -106 51 -301 Feb............................. 798 -112 286 51 188 44 249 122 75 -329 1 Includes adjustments for differences in trading days. tween extensions and repayments for some particular holders do 2 Net changes in credit outstanding are equal to extensions less not equal the changes in their outstanding credit. Such transfers do repayments, except in certain months when data for extensions and not affect total instalment credit extended, repaid, or outstanding, repayments have been adjusted to eliminate duplication resulting See also Note to previous table. from large transfers of paper. In those months the differences be- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 56 INDUSTRIAL PRODUCTION: S.A. □ APRIL 1969 MARKET GROUPINGS (1957-59 = 100) 1957-59 1967 1968 1969 Grouping p p ti o r o o r n ­ ­ a a v g e e r 1 ­ Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec, r Jan.r Feb/ Total index..................................... 100.00 158.1 162.C 163.C 162.5 164.2 165.8 166.0 164.6 165.1 166.C 167.5 1 68,* 1 69 J 169.5 Final products, total. ......................... 47.35 158.3 162.C 163.5 161.7 163.0 165.2 164. 7 164.8 165. 167.1 167.$ 168 168.. 169.3 Consumer goods............................ 32.31 148.5 152.9 155.0 153.5 154.6 156.8 156.4 156.8 157,3 159,6 159.2 160, 161.2 I6J 3 Equipment, including defense. ... 15.04 179.4 181.6 181.8 179.4 181.1 183.2 182.6 181.9 183.6 183.0 186.5 185.3 183 J 185.7 Materials............................................ 52.65 157.8 161.8 162.8 163.1 165.2 166.7 167.4 164.2 165.1 165.7 167.6 169.3 170.1 169.3 Consumer goods Automotive products......................... 3.21 149.1 162.7 173.4 168.7 178.1 180.7 180.4 177.1 175.6 178.$ 181.2 177.8 176.2 172. 7 Autos. ................................................. 1.82 145.7 158.0 172.7 166.8 182.3 183.5 183.7 182.4 177,4 180,3 180,6 174.5 170 € 165.0 Auto parts and allied products........ 1.39 153.6 168.8 174.4 171.2 172.6 177.1 176.1 170.2 173,2 177,0 182.1 182,2 183.5 182.8 Home goods and apparel................... 10.00 149.9 151.4 153.8 153.7 149.9 155,7 154.1 155,8 156.3 158.1 158.6 157.6 161.C 159.0 Home goods...................................... 4.59 166.0 171.5 172.9 170.1 170.4 173.4 171.5 174.6 175.9 176.7 178.3 180.0 184.3 182.9 Appliances, TV, and radios.......... 1.81 159.6 162.6 164.8 156.8 156.7 161.6 161.8 168.0 170,4 171.8 171.9 173,2 177.5 178.6 Appliances.................................. 1.33 163.2 165.9 168.4 158.9 158.5 165.2 166.5 172.8 175,5 175.1 177.2 181.7 186.8 186.6 TV and home radios................. .47 149.2 153.1 154.8 151.0 151.7 151,3 148.5 154.5 156.2 162.5 156.9 149.4 151.5 156,0 Furniture and rugs......................... 1.26 159.6 169.2 169.9 170.1 174.6 174.8 174.5 174.0 175.5 174,2 177.0 180.2 184.3 180.9 Miscellaneous home goods........... 1.52 178.9 184.0 185.0 185.9 183.1 186.2 180.5 182.9 182.8 184.7 187.0 187,9 192.2 189.6 Apparel, knit goods, and shoes........ 5.41 136.2 137.3 140.3 139.9 139.5 140.8 139.4 139,8 139.6 142.3 142 0 138.7 141.3 Consumer staples................................ 19.10 147.6 151.2 151.7 150.7 151.2 153.4 153.5 153.9 154.9 157.1 155.8 158.4 158.8 160.7 Processed foods............................. 8.43 130.0 130.6 131.3 131.2 131.0 132.2 132.9 132,5 132.5 133.2 132.0 134.7 135.4 137.4 Beverages and tobacco...................... 2.43 137.4 141.8 141.7 139.4 136.6 142.9 139,6 144.7 145.2 145.9 142.3 145.4 144,6 Drugs, soap, and toiletries............... 2.97 182.7 185.9 187.5 186.1 190.0 192.0 192.6 190.6 193.6 199.8 200.4 201.4 203.7 203.9 Newspapers, magazines, and books. 1.47 140.1 141.5 142.1 142.1 145.3 143.6 144.2 143.6 140.7 145,8 146.0 147.1 146.3 145,7 Consumer fuel and lighting .......... 3.67 168.9 179.6 179.4 177,3 177.0 180.8 180,8 182.6 186,0 188.7 186.1 190.2 190.0 Fuel oil and gasoline..................... 1.20 132.4 135.4 136.2 136,3 140.2 142.8 140.3 138,3 142.6 141.4 140.6 141.3 129.9 138.1 Residential utilities........................ 2.46 186.7 201.2 200.4 197.2 194.9 199.3 200.6 204.2 207.2 211.8 208.3 214.0 219.3 Electricitv............................... 1.72 199.9 218.4 217.3 212.5 209.0 218.0 219.0 224.0 228,0 233.6 228.0 235.7 242.8 Gas. , .............. .74 156.2 Equipment Business equipment............................. 11.63 182.8 182.9 183.3 180.9 182.5 184.3 183.4 182,4 185.2 186.8 191.2 191.1 192.3 193.1 Industrial equipment......................... 6.85 170.2 165.8 167.0 165.9 165.8 168.0 167.5 164.7 167.8 170.2 174.0 174.9 175.4 176.3 Commercial equipment..................... 2.42 200.9 206.1 205.4 204.4 203.6 204.6 202.4 204.6 205.9 207.3 208.7 205.3 209.4 212.2 Freight and passenger equipment, ,. 1.76 215.4 230.1 227.8 220.8 231.5 234.0 234.3 233.2 235.6 234.3 247.4 247,2 246.4 244.0 Farm equipment................................ .61 158.7 146.4 150.6 140.3 145.1 144.2 139.6 145.8 152.9 155.3 152.4 134.0 135.9 3.41 Materials Durable goods materials.................. 26.73 151.9 155.4 156.7 157.1 159.4 160.4 159.8 153.3 153,3 155.4 157.6 159.7 161.1 160.4 Consumer durable...................... 3.43 143.9 162.2 160.1 154.6 163.0 166.2 167.7 153.5 166.1 166.5 169.6 161 .0 162.2 164.1 Equipment.......................................... 7.84 184.5 186.7 185.1 181.9 183.6 184.8 185.8 185.3 185.1 184.7 187.7 187.5 187.4 188.4 Construction............................ 9.17 139.6 144.8 145.8 144.4 145.3 145.6 143.7 143.3 145.5 146.3 148.3 152.2 154.5 151.8 Metal materials n.e.c......................... 6.29 133.5 141.4 140.7 144.5 145.0 143.3 146.6 127.4 122.3 126.6 131.8 140.5 142.9 147.4 Nondurable materials......................... 25.92 163.9 168.3 169.1 169.3 171.2 173.9 175.3 175.5 177.2 176.4 177.9 179.2 179.2 178.3 Business supplies............................... 9.11 152.9 154.1 150.1 152.0 154.5 159.0 157.9 158.4 161.1 162,3 161.7 163.2 164.8 162.6 Containers...................................... 3.03 148.5 144.5 142.8 150.9 155.6 158.9 156.0 154.2 163.4 167.4 161.5 164.8 168.2 164.9 General business supplies............. 6.07 155.1 154.4 153.8 152.6 154.0 159,0 158.8 160.5 160,0 159.8 161.8 162.4 163.1 161.4 Nondurable materials n.e.c............... 7.40 202,2 213.9 215.7 214,9 216.4 218.5 223.8 223.6 227.3 228.2 230.3 233.6 231.1 232.0 Business fuel and power................... 9.41 144.3 149.1 150.8 150.2 151.7 153,2 154.1 154.3 153.3 149.3 152,5 151.9 152.4 151.3 Mineral fuels.................... 6.07 129.2 131.4 134.3 132.6 133.7 136.4 136.9 136.6 134.1 126,0 131.4 130,0 128.7 126.0 Nonresidential utilities .......... 2.86 183.3 194.4 193.6 194.6 197.0 196.7 198.2 200.3 202.8 206,3 205.7 206.7 211.8 Electricity.............. .............. 2.32 185.8 199.0 198.3 199.2 202.0 198.9 200.2 202.2 204.8 208,6 207,1 208,1 214,1 General industrial................... 1.03 182.6 193.0 191.8 195.4 197.4 193.7 195.1 197.0 199.3 203.6 202.0 204.2 207.0 Commercial and other........... 1.21 197.0 213.8 213.4 212.1 215.7 213,0 214.8 216.9 220.0 223,6 222,6 222,2 231.2 Gas.,,. ...................... . .54 172.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 159.0 167.9 173.1 169.5 173.6 176.4 175.2 175.6 175.8 177.6 179.5 179.1 180.9 178.7 Apparel and staples........................... 24.51 145.1 148.1 142.9 148.3 148.6 150.6 150.4 150.7 151 .5 153.9 152.8 154,1 155.0 For notes see page A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ INDUSTRIAL PRODUCTION: S.A. A 57 INDUSTRY GROUPINGS (1957-59 = 100) 19 p 5 r 7 o - ­ 59 1967 1968 1969 Grouping por­ aver­ tion age' Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb.’’ Total index 100.00 158.1 162.0 163.0 162.5 164.2 165.8 166.0 164.6 165.1 166.0 167.5 168.7 169.2 169.5 Manufacturing, total. 86.45 159.7 163.6 164.6 163.7 165.8 167.3 167.4 165.7 166.3 167.8 169.1 170,2 170.4 170.7 Durable............... 48.07 163.7 167.6 168.2 167,2 169.8 171.0 170.8 167.8 168.7 169.3 171.3 172.4 172.7 173,2 Nondurable.......... 38.38 154.6 158.6 160.0 159.5 160.8 162.7 163.0 163.0 163.3 165.9 166.3 167.4 167.5 167.5 Mining..................... 8.23 123.8 123.9 126,2 127.1 126.9 129.2 130.0 129.4 127.0 120.7 126.4 127.4 126.5 125.2 Utilities.................... 5.32 184.9 199.0 198.0 196.5 196.1 197.9 199.3 202.1 204.8 208.9 206.9 210.1 215.2 218,0 Durable manufactures Primary and fabricated metals........ 12.32 145.3 150.8 151.7 151.2 155.7 156.2 154.7 141.8 141.1 144.5 148.6 152.9 154.7 156.7 Primary metals................................. 6.95 132.5 139.3 140.2 143,3 148.5 148,6 145.8 122.8 120.6 123.1 129.3 135.4 138.0 141.1 Iron and steel............................... 5.45 126.8 137.8 140.8 134,1 146.4 148,4 146.6 112.9 107.3 108.1 115.8 124.6 125.5 132.2 Nonferrous metals and products. 1.50 153.2 154.1 151.3 145.5 150.4 150.4 153.6 153.9 166.2 174.0 173.8 180.7 177.2 177.5 Fabricated metal products.............. 5.37 161.9 165.7 166.6 161.4 165.0 166.1 166.2 166.3 167.6 172.2 173.5 175.6 176,3 176.9 Structural metal parts................. 2.86 158.1 160.9 162.7 156.9 159.8 161.8 159,7 159.1 161.1 165.1 168,3 170.3 170.1 171.6 Machinery and related products.. 27.98 177.5 181.5 182.3 179,2 181,4 183.5 184.0 184,4 185,6 185.0 186.2 185.6 185.2 185.4 Machinery..................................... 14.80 183.4 183.2 183.3 179.4 179.9 181.7 182,7 183,8 186.4 186.1 187.4 188.6 191.4 191.3 Nonelectrical machinery...... 8.43 183.4 180.6 180.2 176.6 176.9 178.8 179.8 179.1 182.6 183.7 184,4 185.3 187.7 188.2 Electrical machinery............... 6.37 183.3 186.6 187.3 182.8 184.2 185.5 186.5 190.1 191.4 189.3 191.4 193,0 196.4 195.5 Transportation equipment.......... 10.19 165.7 175.1 177.6 175.3 180.4 182.6 183.2 181.7 180.5 180.4 180.2 176.4 171 .4 172.5 Motor vehicles and parts........ 4.68 146.5 161.1 167.8 164.8 173.6 174.2 174,3 175.4 173.5 177.0 177.7 172.3 167.7 166.7 Aircraft and other equipment.. 5.26 182.1 186.5 185.4 183.5 185.4 188.6 189.3 185.7 184.7 181.0 179.6 177.0 170.9 173.9 Instruments and related products 1 .71 184.8 184.7 183.8 181.4 181.2 181.3 179.2 182.6 184.3 185.8 188.5 189.7 191 .6 190.4 Ordnance and accessories........... 1 .28 Clay, glass, and lumber............ 4.72 130.7 130.7 128.8 138.0 137.7 137.1 136.2 135.5 138.8 139.9 141.5 144.3 142,9 142.8 Clay, glass, and stone products. 2.99 138.7 137,3 131.0 146.1 145,4 145.1 145.2 147.5 150.0 151.8 150.4 151.2 153.7 155.3 Lumber and products.............. 1.73 116.9 119.3 125.0 123.9 122.7 123.4 120.6 114.7 119.4 119.4 126.1 132.3 124.3 121,3 Furniture and miscellaneous..... 3.05 162.6 166.9 166.9 166.5 169.8 169.5 169.5 170.1 170.9 171.3 172.2 174,2 176.6 175.2 Furniture and fixtures............. 1,54 167.7 173.0 173.7 174.1 178,9 178.0 177.8 178.6 179.7 180.4 181.7 182.9 186.8 185.6 Miscellaneous manufactures... 1.51 157.3 160,7 159.9 158.8 160,6 160.9 161.1 161.4 162.0 162.1 162.5 165,3 166.2 164.7 Nondurable manufactures Textiles, apparel, and leather 7.60 139.4 J 41.9 143.9 142.9 144.1 145.2 144.2 144.1 144.8 146.8 147.5 145.0 143.9 142.0 Textile mill products........... 2.90 142.0 148.8 149.9 146.3 147.2 148.8 150.9 151.4 152.0 153.3 155.1 153.5 151.8 151 .0 Apparel products................. 3.59 147.6 146.4 148.5 148.9 149.6 151.4 150,4 149.0 149.9 152.1 152,5 149.2 148.8 Leather and products.......... 1.11 106.3 109.7 113.7 114.6 118.0 115.8 107,0 109.5 109,3 113.0 111,7 109.2 107.8 .......... Paper and printing............................ 8.17 149.6 150,6 152.0 151.6 154.5 155.2 155.6 156,5 156.8 157.7 159.8 159.7 161.7 162.0 Paper and products......................... 3.43 153.6 157.1 159.2 159.5 161.1 162.9 164.1 164.1 166.1 166.7 170.1 169.9 174.6 174.4 Printing and publishing................... 4.74 146.8 145.9 146.8 145.8 149.8 149.6 149.5 151,1 150.0 151.2 152.3 152.3 152.4 153.0 Newspapers................................... 1.53 134.2 131.4 133.7 130.8 134.4 134.7 134.7 137.7 140.9 138.4 140,8 139.5 141.2 141.7 Chemicals, petroleum, and rubber... 11.54 790.0 200,2 201.6 200.9 203.1 206.6 208,2 207.6 207.9 212.8 213.6 216.8 215.3 215.8 Chemicals and products................. 7.58 203.8 213.8 215.0 215.2 216.6 219.3 222.4 221.0 222.4 227.8 228.7 231.8 233.6 232.7 Industrial chemicals..................... 3.84 236.0 251.8 252.7 256.2 255,5 258.0 264.4 262.7 263,2 268.2 268.0 275.0 276.9 Petroleum products......................... 1.97 133.4 135.7 136.1 137.3 139,9 140.6 139.5 140.7 141.9 142.2 141.4 141.2 131 .5 140.7 Rubber and plastics products...... 1.99 193.5 212.3 215.7 209.4 214.3 218.0 222.4 223.1 223.4 225.8 227.5 234.6 229.1 .......... Foods, beverages, and tobacco. 11.07 131.7 133,1 133.7 133.6 132.9 134.5 134.2 134.4 134.5 136.1 134.9 137.0 138.3 138,7 Foods and beverages............. 10.25 132.6 133.2 134.5 135.3 134.0 135,5 135.1 135.3 135.4 137.3 136.1 138.8 139.8 140.3 Food manufactures............ 8.64 130.1 130,7 131.4 131.9 131,9 132.2 132.7 131.5 131 .5 133.3 132.8 134.6 136.5 137.5 Beverages............................. 1.61 146.0 146.7 151,2 153.3 145,0 153.1 147,9 155.7 156,0 158.6 153.7 161.6 157.4 Tobacco products................ .82 120.3 132.1 122.9 112,1 120.0 122,8 123.4 123.1 124.0 120.8 119.9 113.6 119.5 .......... Mining Coal, oil, and gas.............. 6.80 122.7 123.2 126.0 124.7 125.6 128.1 128.7 127.9 125.8 118.9 124.6 124.2 123.2 120,7 Coal................................... 1.16 120.4 116,8 126.0 124.4 120.4 126.7 126,6 121.3 120,8 86.6 115.9 118.3 115.3 112.4 Crude oil and natural gas 5.64 123.1 124.5 126.0 124.8 126.6 128.4 129.2 129.3 126,8 125.5 126.3 125.4 124.8 122.4 Oil and gas extraction.. 4.91 131.3 134.8 136.2 134.5 136.8 138.7 139.3 140.2 137.3 135.3 135.1 132.8 131.8 129,3 Crude oil................. 4.25 126.3 129.7 130.9 128.7 131.2 132,4 134.0 134.8 131,2 129.1 128.6 126,4 125.2 121.9 Gas and gas liquids.. .66 163.5 Oil and gas drilling___ .73 67.9 55,0 56.7 59,1 57,7 59.1 60,7 55.9 55.8 59.5 67.3 75.4 77,2 .......... Metal, stone, and earth minerals. 1.43 128.9 127.0 127.4 138,3 133.5 134.3 135.8 136,2 132.8 129.2 135,3 143.0 142.1 146.8 Metal mining.............................. .61 120.3 102.8 108.7 139.9 131.4 130.8 134.1 134.5 127.7 125.1 135.1 137.6 140.2 142.8 Stone and earth minerals........... .82 135.4 145.0 141.2 137.1 135.0 136.9 137.1 137.5 136.5 132.2 135.5 147.0 143.5 149.7 Utilities Electric. 4.04 191.8 207.3 206,4 204,9 205.0 207.0 208.2 211.5 214.7 219.3 216.0 219.9 226.3 Gas.... 1.28 163.0 172.8 171.8 170.0 168,4 169.2 171,3 172.6 For notes see p. A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: N.S.A. □ APRIL 1969 MARKET GROUPINGS (1957-59 = 100) 1957-59 1968 1969 pro- 1967 por- avertion agd Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r FebZ Total index ..................... 100,00 158.1 162.7 164.6 163.2 165.2 169.4 160.3 163.3 169.5 170.7 169 1 166 3 166 8 169 5 Final products, total.......................... 47.35 158.3 162.4 164.8 160.8 162.6 168.8 159.1 162.0 171.9 172.6 169.2 165 6 166.7 167.1 Consumer goods............................ 32,31 148,5 153.4 156,2 151.7 153.7 161.2 149.6 154.2 165,9 167.5 161.7 155 8 159 0 161,1 Equipment^including defense. . . . 15,04 179.4 181.7 183.4 180.4 181.6 185.1 179.6 178.6 184.6 183.6 185.4 186.6 183.2 185.6 Materials............................................. 52.65 157.8 162.8 164.5 165.4 167.6 169.9 161.3 164.5 167,5 169.0 169.5 166.9 166.9 170.0 Consumer goods Automotive products.......................... 3.21 149.1 171.2 183.7 178.7 189.5 194.7 148.4 101.1 170.8 197.2 198.3 185 5 185.4 181.6 Autos.................................................. 1.82 145.7 173.8 193,4 183,5 202.4 208.3 134.1 45.6 165.0 207,4 212.2 192 0 187.7 181.5 Auto parts and allied products. .... 1.39 153.6 167.9 170,8 172.3 172.7 176.7 167.4 174.1 178.4 183.8 180.1 176 9 182 2 181.6 Home goods and apparel................... 10.00 149.9 159.0 160.6 154.9 153,1 161.0 140.4 155.8 162.2 167.4 162.7 149.2 156.1 162. 7 Home goods....................................... 4.59 166.0 177.2 171.1 172.5 170. 8 177.4 157.1 169.8 183.9 189.5 186 2 178.8 182.8 (87.6 Appliances, TV, and radios......... 1.81 159,6 180.9 176.9 168.7 163,3 171.7 139.8 151.6 180.5 187.5 180.1 (61 5 183.1 194.5 Appliances.................................. 1.33 163 2 187.9 185.3 180.3 167 4 180.4 149 5 147.8 183.5 186.1 180 7 172 2 191 7 205.3 TV and home radios......... .47 149.2 161.1 153.1 135 .9 151.7 147.5 112.4 162.2 171.8 191.7 178.2 I 31 5 (58 9 164.1 Furniture and rugs........................ 1,26 159.6 167.2 167.9 165.3 168,0 174.8 166.1 178.0 180.4 183.3 183 5 186 9 180 2 178.7 Miscellaneous home goods........... 1.52 178.9 181.2 184,8 183.1 182,0 186.2 170,2 184.7 191.0 196.9 195.6 192 6 184 5 186.8 Apparel, knit goods, and shoes........ 5.41 136,2 143.5 146.6 139.9 138,1 147.1 126.2 144.0 143.8 148.7 142,7 (24. 1 133.5 Consumer staples................................ 19.10 147.6 147.4 149.2 145.5 148,1 155.8 154.6 162.3 167.0 162.6 155.0 154.3 156.1 156.9 Processed foods................................. 8.43 130,0 122.1 123.8 122,8 125,1 132.2 132.2 140.2 152 6 147.9 137.0 132 4 128.6 128.5 Beverages and tobacco...................... 2.43 137.4 129.8 138.5 141,0 146.7 163.7 146.4 156.7 148 9 150.0 135.0 125 9 126.9 Drugs soap, and toiletries............... 2.97 182.7 185,9 198.4 183.7 192.8 198.7 187 8 196.9 199 4 204.6 201 4 196 8 199 6 203.9 Newspapers, magazines, and books. 1.47 140.1 140.9 144.2 142.7 144,9 143.0 142.8 145.3 142,0 145.7 144,1 146^8 145.0 145.1 Consumer fuel and lighting. 3.67 168,9 187,6 183.2 169,3 165,7 174,1 188,8 195.5 195,9 176.5 175,0 191 3 206 9 Fuel oil and gasoline..................... 1.20 132.4 139.1 134.9 129,3 135,6 141.3 142.8 142.5 142.7 137.7 139.7 144.6 135.3 1 41 ,6 Residential utilities,............... 2.46 186.7 Electricity................................... 1.72 199.9 232.8 226.4 200.4 188.1 204.9 234.3 248.6 249,1 2(0.2 205,0 235.7 275 1 Gas............................................ .74 156.2 Equipment business equipment........................... 11.63 182.8 183.0 185.7 182.7 183.6 187.4 180.2 178.6 186.6 187.0 188.3 191 3 191.2 193.0 Industrial equipment.................... 6.85 170.2 165.0 167,2 165.9 166,0 169.7 165,8 164.2 169.3 169.2 172.4 175 8 175 0 175 4 Commercial equipment..................... 2,42 200 9 204.7 203.6 200.5 201.2 205.2 198.4 204.6 209.0 209.4 211.2 209 8 209 6 210.7 Freight and passenger equipment. .. 1.76 215.4 230.1 238.1 232.9 238.4 243.4 229.6 219.2 238.0 240.2 240.0 239.8 239.0 244.0 Farm equipment................................ .61 158.7 162.6 170.4 156.7 153.6 152.9 126.8 119.1 143.4 145.7 126.8 131.1 138.3 Defense equipment.............................. 3.41 Materials Durable goods materials................... 26.73 151.9 156.1 157.7 158.8 162.4 164.8 155.1 153.1 157 4 158.9 159,6 158.2 156.9 160.6 Consumer durable............................. 3.43 143.9 164.6 164.9 159.2 167.9 169.5 153.4 145.8 164’ 4 169.0 174.7 169 0 167.9 (66.6 Equipment.......................................... 7,84 184 5 188.4 187,1 183.9 184,9 186.6 180.0 179.7 183 2 184.1 187.9 190,3 189 1 190.1 Construction..................................... 9,17 139.6 134.7 139 2 143.0 147.5 155.1 149.4 153.3 1542 153.6 148,0 143 1 137.5 141 2 Metal materials n.e.c....................... 6.29 133.5 142,7 144,1 150.3 153,0 149.3 133.4 123,7 126 0 129.6 132.9 134.3 139.2 148.7 Nondurable materials........................ 25.92 163.9 169.7 171.5 172.2 173.0 175.1 167.6 176.3 177.9 179.3 179.6 176.0 177,1 179, 7 Business supplies............................... 9.11 152.9 150.6 152.9 156.4 1571, 160.6 148.1 158.8 163 0 168.9 165.3 157.7 158.9 161.9 Containers...................................... 3,03 148.5 142,8 143,5 156.3 157,2 163.8 152.1 165.0 169 0 175.9 161.1 146.7 159 8 162.9 General business supplies............. 6.07 155.1 154.4 157.6 156.4 157.1 159.0 146.1 155.7 160 0 165.4 167.5 163 2 158 5 161.4 Nondurable materials n.e.c............... 7.40 202.2 218.2 220.0 221.3 221.8 222.9 211.0 221.4 225 0 230.5 232.6 228 9 229 9 236.6 Business fuel and power........... 9.41 144.3 150.1 151,2 148,9 150,1 151.6 152.4 157.7 155.2 149.2 151.9 152.0 153 1 152,1 Mineral fuels.................................. 6.07 129.2 135.6 137.2 134.3 133,8 132.8 130.1 134.9 132.6 126.1 132.7 131.6 130,8 1 30.2 Nonresidential utilities.................. 2.86 183 3 Electricity.......................... 2.32 185.8 190.8 191,8 189.8 195,3 202.9 212.2 220.7 216.7 208.3 201.2 203.8 210.6 General industrial.......... 1.03 182,6 187.0 190,8 192,9 198.4 197.6 198.0 202.9 202,3 204.0 202.0 202 2 206 6 Commercial and other........... 1.21 197,0 203.1 201.9 196.2 202.1 217.3 235.2 247.3 240.2 222.7 210.9 215.5 225.4 Gas.............................................. .54 172.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 159.0 174.7 179,8 175,1 178,5 184.5 153.5 141.5 178.5 192.7 191.2 181,5 183,8 185.1 Apparel and staples........................... 24.51 145,1 146,6 148,7 144.2 145.9 153.8 148.3 158.3 161.9 159.5 152.3 147.6 154.3 For notes see page A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ INDUSTRIAL PRODUCTION: N.S.A. A 59 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1967 1968 1969 pro­ Grouping por­ a a v g e e r ! ­ tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb.*" Total index..................................... 100.00 158.1 162.7 164.6 163.2 165.2 169.4 160.3 163.3 169.5 170.7 169.1 166.3 166.8 169.5 Manufacturing, total.......................... 86.45 159.7 164.2 166.4 165.1 167.4 171.6 160.4 163.0 170.5 173.4 171.4 167.5 167.3 170,7 Durable.......................................... 48.07 163.7 168.9 170.5 169,4 172.1 175.4 164.1 160.5 170.6 173.5 174.2 172.6 171.1 173,9 Nondurable.................................... 38.38 154.6 158.3 161.2 159.8 161.6 167.0 155.7 166.3 170.5 173,3 168.0 161.2 162,4 166.6 Mining................................................ 8.23 123.8 123.7 125.3 127,3 128.6 128.9 127.1 130.7 128.6 122,8 126.8 126.3 124,7 124.6 Utilities............................................ 5.32 184.9 Durable manufactures Primary and fabricated metals.......... 12.32 145.3 152.9 154.9 154.8 158.3 159.7 146.2 140.5 143.9 147.5 149.8 150.6 152.9 157,9 Primary metals.................................. 6.95 132.5 147.2 148.9 151.5 153.7 150.8 132,7 117.9 119.4 124.3 129.3 131.3 138.0 147.7 Iron and steel................................. 5.45 126.8 144.7 147.8 148,8 149.3 148.4 131.2 108,4 106.2 109.7 117.0 121.5 128.0 138.8 Nonferrous metals and products.. 1.50 153.2 156.4 153.0 161,3 169.7 159.7 138.2 152.4 167.4 177.3 173.8 167.0 174.2 180.2 Fabricated metal products............... 5.37 161.9 160.2 162.6 159.0 164.2 171.1 163.7 169.6 175.6 177.4 176.3 175.6 172,1 171,1 Structural metal parts................... 2.86 158.1 154,5 156.4 152.2 159.0 165.0 159,7 163.1 167.5 170.1 170.8 172.0 166,7 164.7 Machinery and related products..... 27.98 177.5 184.4 185.9 182.0 184.4 187.6 175.7 169.8 185.3 188.4 190.3 188.4 186.8 188.4 Machinery.......................................... 14.80 183.4 185.6 185.8 182.4 182.4 185.8 176.0 177.9 187,0 188.1 189.1 188.4 191.3 193.5 Nonelectrical machinery............... 8.43 183.4 183.1 185.2 182.2 181.0 183.8 175.3 172.5 180.2 180.4 182.6 185.3 187.7 190.8 Electrical machinery...................... 6.37 183.3 188.8 186.6 182.6 184.1 188.5 176.9 185.0 196.1 198.3 197.6 192.4 196.1 197.1 Transportation equipment................ 10.19 165.7 179,8 183.9 179.0 185.3 188.0 170.5 150.1 178.3 186.4 188.3 183.8 176.1 177.6 Motor vehicles and parts.............. 4.68 146.5 168.6 178.1 171.3 184.1 188.3 152.0 110.5 170.0 188.9 192.6 181.5 176.9 175.4 Aircraft and other equipment.... 5.26 182.1 189.3 188.2 184.4 184.7 186.0 184.8 182.4 184.0 181 .9 182.3 183.2 172.6 176.5 Instruments and related products... 1.71 184.8 183.8 182.9 178.7 179.4 183.1 177.4 184.1 186.3 187.8 190.0 192.0 189.3 189.4 Ordnance and accessories................. 1.28 Clay, glass, and lumber..................... 4.72 130.7 122.1 124.8 137.6 139.2 146.6 142.0 147.6 148.6 148.3 139.4 133.2 126.8 132.0 Clay, glass, and stone products........ 2.99 138.7 125.6 126.4 145.5 148.7 155.1 154.4 159.3 158,6 160.1 150.4 143,2 136.2 139.9 Lumber and products....................... 1.73 116.9 116.3 121.9 123.9 122,7 132.0 120.6 127.3 131,3 127.8 120.4 115.8 110.6 118.3 Furniture and miscellaneous............... 3.05 162.6 162.9 J6J.8 162.2 165.9 170.6 164.1 775.0 177.3 180.5 J 80.0 177.7 169.8 J 70.5 Furniture and fixtures....................... 1.54 167.7 171.3 171.6 173.5 169.4 179.4 173.4 183.6 185.1 187.3 186.8 189.8 183.1 182.8 Miscellaneous manufactures............. 1.51 157.3 154,3 155.9 154.8 158.2 161.7 154.7 166.2 169.3 173.5 173.1 165.3 156.2 158.1 Nondurable manufactures Textiles, apparel, and leather............ 7.60 139.4 149.7 152.4 145.8 144.3 151.1 129.0 146.9 147.6 151.6 148.0 133.2 140.8 147.4 Textile mill products......................... 2.90 142.0 152.5 155.1 149.2 151.6 156.2 136.6 152.2 155.0 156.4 157,4 146.6 149.5 153.3 Apparel products............................... 3.59 147.6 157,4 160.4 153.4 148.9 158.2 133.1 152.0 152.9 158.9 152.5 132.0 144.3 Leather and products........................ 1.11 106.3 117,3 119.4 112.3 110.9 115,2 96.3 116.6 110,9 115.8 109.5 101.9 107.3 Paper and printing............................. 8.17 149.6 151.2 155.4 156.0 156.4 156.2 146.3 155.1 158.9 165.4 163.1 155.9 158,5 162.7 Paper and products........................... 3.43 153.6 161.0 164.0 165.9 163.5 166.6 151.0 164.1 168.6 178.4 J77.0 156.3 172.0 178.8 Printing and publishing................... 4.74 146.8 144.2 149.2 148.8 151.2 148.8 142,9 148.6 151.9 156.1 157,4 155.6 148.7 151.1 Newspapers.................................... 1.53 134.2 126.1 137,0 139.3 143.3 135.4 117.2 128.8 140.2 148,5 154.9 143.0 129.9 136.0 Chemicals, petroleum, and rubber.... 11.54 190.0 201.9 203.7 203.5 206.8 211.8 199.8 208.9 212.4 216.9 214.3 212.2 211,8 217.6 Chemicals and products.................. 7.58 203.8 215.4 217.7 218.9 222.0 224.1 214.7 222.7 225.9 230.4 230.9 227.8 228.6 234.4 Industrial chemicals....................... 3.84 236,0 255.6 255.2 261.3 260.7 259.3 253,8 261.4 265.8 270.9 274.7 275.0 272.7 Petroleum products........................... 1.97 133.4 133.0 131.3 131.8 139.9 144.8 146.9 148.2 147,6 143,6 139.6 137.8 127.6 137.9 Rubber and plastics products........... 1.99 193.5 218.7 222.4 215.9 215.4 225,7 195.7 216.4 230.8 238.2 225.2 226.4 231.4 Foods, beverages, and tobacco........... 11.07 131.7 124.2 127.2 126.8 130.0 139.1 135.1 143.4 151.1 148.5 136.9 131.2 128,6 129.4 Foods and beverages......................... 10.25 132.6 123,6 127.7 128.0 130.5 139.7 137.2 144.2 152.9 149.8 138.0 134.2 129.4 130.2 Food manufactures....................... 8.64 130.1 122.6 124.0 122.9 125.3 132,2 131.9 139.7 151.8 148.0 137.4 132.6 129.0 129.0 Beverages........................................ 1.61 146.0 129.1 147.4 155.8 158.1 180.1 165.3 168.6 159.1 159.4 141,4 143.0 131.3 Tobacco products.............................. .82 120.3 131.4 121.1 111.9 124.3 131.4 109.2 133.2 128.8 131.6 122.3 92.5 118.2.......... Mining Coal, oil, and gas. ............................ 6.80 122.7 126.9 128.2 125.9 125.4 124.8 122.7 126.9 124.8 119.1 125.7 125.6 125.2 124.3 Coal.................................................... 1.16 120.4 118.2 127.0 125.3 121.6 118,3 105,2 127.6 127,8 94.4 120.6 116.2 113.0 113.7 Crude oil and natural gas................. 5.64 123.1 128.7 128.5 126,0 126,2 126,1 126.3 126.7 124.2 124.2 126.7 127.5 127.7 126.5 Oil and gas extraction................... 4.91 131.3 139.8 139,5 136.4 136,6 136.2 136.0 136.7 133,8 133.5 135.5 135.2 135.0 134.1 Crude oil.................................... 4.25 126.3 133.6 133,5 130.8 131.9 131,1 131.3 132.1 128,6 127.8 128.6 127.7 127.1 125.6 Gas and gas liquids................... .66 163.5 Oil and gas drilling....................... .73 67.9 54.2 53.7 65.0 55.7 57.9 61,1 59.4 59.2 61.0 67.0 75.2 78.4 75.0 Metal, stone, and earth minerals....... 1.43 128.9 108.4 111.6 134.1 143.7 148,4 147.7 149.1 146.9 140.2 132.1 129.5 122.2 125.9 Metal mining..................................... .61 120.3 92.5 96.7 130.1 144.5 147,8 143.5 145.3 144.3 133.9 125.6 123.8 123.4 128.5 Stone and earth minerals................. .82 135.4 120.2 122.6 137.1 143.1 148.8 150.9 151.9 148.8 144.8 136.9 133.8 121.4 124.1 Utilities Electric.............................................. 4.04 191.8 208.7 206.6 194.3 192.3 203.7 221.6 232.6 230.5 209.1 202.8 217.4 238.1 .......... Gas..................................................... 1.28 163.0 1 Figures shown below, incorrectly labeled 1968 (preliminary) in the shown separately. A description and historical data are available in March 1969 Bulletin, are those for 1967, as previously published. Industrial Production—1957-59 Base, Figures for individual series and Note.—’Published groupings include some series and subtotals not 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 □ APRIL 1969 SELECTED BUSINESS INDEXES (1957-59 = 100, unless otherwise noted) Industrial production Manu­ Prices 4 facturing 2 Ca­ Nonag­ Major market groupings Major industry u p t t a i i o c li n i z t y a ­ s C tr o u n c ­ ­ r t i u c r u a l l ­ Total Period Total Final products Mate­ groupings in ( c p e m e n r f t g ) . t t c i r o o a n n c ­ t T m p o e e l t m o a n l y ­ t — ­ J m p E l e o m n y ­ t ­ P ro a l y ls ­ s re a t l a e i s l ^ s C um on e ­ r W m c s o o a h m d l o e i l ­ t e y ­ Total g s C o u o o m n d e ­ s r E m qu en ip t ­ rials Mfg. M in i g n­ U iti t e i s l­ 1951..................... 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952..................... 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.0 1953. 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954. 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955..................... 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90,0 91 96.5 105.5 94.8 89 93.3 93.2 1956..................... 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100.2 92 94.7 96.2 1957..................... 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958. 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74.0 102 97.8 95.2 93.5 98 100.7 100.4 1959. 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 105 101.5 100.1 105.1 105 101.5 100.6 I960. 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 80.6 105 103.3 99.9 106.7 106 103.1 100.7 1961 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 78.5 108 102.9 95.9 105.4 107 104.2 100.3 1962..................... 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 82.1 120 105.9 99.1 113.8 115 105.4 100.6 1963..................... 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 83.3 132 108.0 99.7 117.9 120 106.7 100.3 1964..................... 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 85.7 137 111.1 101.5 124.3 128 108.1 100.5 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..................... 158.1 158.3 148.5 179.4 157.8 159.7 123.8 184.9 85.3 153 125.7 113.5 155.0 153 116.3 106.1 196R ........... 173 1968--Feb........... 162.0 162.0 152.9 181.6 161.8 163,6 123.9 197.5 ^84.9 152 128.7 114.3 162.8 161 119,0 108.0 Mar.......... 163.0 163.5 155.0 181.8 162.8 164.6 126.2 196.8 169 128.8 114,2 163.8 165 119,5 108.2 Apr........... 162.5 161.7 153.5 179.4 163.1 163.7 127.1 195.8 1 64 129.0 114,6 161.4 162 119.9 108.3 May......... 164.2 163.0 154.6 181.1 165.2 165.8 126.9 196.1 I ^84.8 172 129.1 114.7 166.1 165 120.3 108.5 June......... 165.8 165.2 156.8 183.2 166.7 167.3 129.2 197.9 160 129.5 115,3 167.7 167 120.9 108.7 July.......... 166,0 164.7 156.4 182.6 167.4 167.4 130.0 199.3 187 129.8 115.2 167.2 168 121.5 109.1 Aug...... 164.6 164.8 156.8 181.9 164.2 165.7 129.4 202.1 I *'84.0 192 130.1 114.9 167.8 170 121.9 108.7 Sept.......... 165.1 165.7 157.3 183,6 165.1 166.3 127.0 204.8 183 130.2 114.9 171.2 169 122,2 109.1 Oct........... 166.0 167.0 159.6 183.0 165.7 167.8 120.7 208.9 200 130.8 115.3 172.2 168 122.9 109. 1 Nov.......... 167.5 167.9 159.2 186.5 167.6 169. 1 126.4 206.9 1 J'84.2 183 131.3 115.7 173.8 168 123.4 109.6 Dec........... 168.7 rl68.1 160.1 rl 85.3 *•169.3 r170.2 *127.4 210.1 179 132.0 116.4 175,3 166 123.7 109.8 1969-—Jan............ ’•169.2 *•168.3 *■161 .2 *■183.5 *■170,1 170.4 *■126,5 r215.2 191 *■132.6 rl 16.6 r175.8 170 124.1 110.7 Feb........... 169.5 r169.3 *■161.3 185,7 169.3 170.7 125,2 218.0 j 7'84.1 205 133.2 117.0 173.9 172 124.6 111.1 Mar J’. . .. 170.5 170.2 161.9 188.1 171 .0 171.6 128. 1 219.0 133.5 117.3 177.3 173 111.7 1 Employees only; excludes personnel in the Armed Forces. Construction contracts: F. W. Dodge Co. monthly index of dollar 2 Production workers only. value of total construction contracts, including residential, nonresidential, 3 F.R. index based on Census Bureau figures. and heavy engineering; does not include data for Alaska and Hawaii. 4 Prices are not seasonally adjusted. Employment and payrolls: Based on Bureau of Labor Statistics data; 5 Figure is for first'quarter 1968. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Note.—Data are seasonally adjusted unless otherwise noted. Capacity utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS (In millions of dollars) 1968 1969 Type of ownership and type of construction 1967 1968 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total construction i......................... 54,514 61,732 3,704 5,417 4,878 6,170 5,589 5,956 6,318 5,170 6,171 4,863 4,543 4,766 4,802 By type of ownership: Public............................................. 19,039 19,597 1,041 1,698 1,554 2,036 1,860 2,256 1,924 1,549 1,728 1,558 1,278 1,546 1,572 Private 1........................................ 35,475 42^35 2i 664 3J19 3; 324 4,135 3^730 3 J00 4,394 3,621 4,443 3,305 3,265 3,220 3,230 By type of construction: 21 155 24 838 1 495 2 220 2 312 2,543 2,243 2,287 2,295 2,125 2,408 2,043 1,743 1,746 20 139 22 512 1 251 1,835 1 522 2 227 2'030 2 414 2,' 128 1,815 2'370 1 ,'992 1'849 2'145 Nonbuilding................................. 13,220 14,382 *958 1,362 1,044 1,400 1,316 1,255 1,895 1,230 1’393 '828 951 '875 .......... i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of total contracts as reported by the F. W. Dodge beginning Jan. 1968 are not strictly comparable with those for earlier Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into 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

APRIL 1969 □ CONSTRUCTION A 61 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d N f r e a e n o r s t m n i i ­ a ­ l Total Indus­ Bu C i o ld m in ­ gs b O u t i h l e d r ­ Other Total M ta i r l y i­ H w ig ay h­ d C v e m o a v n t & e e i s n l o e o t n r p ­ ­ Other 2 trial mercial ings 1 1959 ........................... 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 21780 4'674 3,280 5,885 17’148 1’371 5,854 1,384 8’539 1962 3........................... 59^667 41'798 24,292 17,506 2,842 5’144 3^631 5i 889 171869 G266 6.365 1,524 81714 1963 4............................ 63,423 44'057 26,187 17,870 2; 906 4,995 3'745 6,224 19,366 1,189 7,084 1'690 9,403 1964.............................. 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1,729 10,590 1965.............................. 72,319 50^253 26,268 23^985 5,118 6^739 4^735 7^393 22^066 852 7^50 2,019 111645 1966.............................. 75,120 51,120 23,971 27,149 6,'679 6'879 5,037 8,554 24'000 769 8,355 2,195 12,681 1967.............................. 76,160 50^87 23 736 26,851 6,131 6’982 4’993 8,745 251573 721 8'538 2,196 14,118 1968.............................. r84,692 '56,996 '28,823 28 J73 5,594 8,333 4’873 9,373 '27 696 1968—Feb.................... 83,884 55,380 26,754 28,626 5,740 8,328 5,417 9,141 28,504 859 9,839 2,304 15,502 Mar....... 83’572 56'055 27,698 28,357 5,528 8,'258 5’412 9,159 27317 734 9,151 2^197 15,435 Apr................... 85,299 57,403 29,320 28,083 5,484 8’512 5'100 8,987 27'896 708 9,777 2^085 15,326 85’707 57’260 29,628 27,632 5,275 8'111 5’121 9,125 28’447 767 9,895 2^054 15,731 June.................. 82,050 54,981 28,187 261794 4,852 8'122 4,678 9,142 27 ’,069 660 9’, 168 2’026 15,215 July................... 81 ,658 54^988 27,770 27,218 4,752 8^272 4,623 9,571 26,670 679 9,103 1 '763 15’125 Aug................... 83,736 56^82 28,325 28,357 5,575 8’641 4,772 9,369 27,054 812 9'181 1 ,894 15,167 Sept............. '85,957 57,444 29,350 28,094 5,492 8,534 4’539 9',529 '28*513 787 9,042 1 ,994 16’690 Oct..................... '85,931 '59,259 '29,823 29,436 6,096 8’939 4'680 9'721 '26^672 1 ,028 8,307 2,082 15’255 Nov................... '89*141 '59,014 '30,152 28’862 6,271 81262 4,716 9,613 '30 J 27 '852 10,719 2^029 16^527 r85 946 '58,899 '30,937 27,962 5,905 8,046 4 449 9,562 '27'047 1969—Jan..................... 89 551 62,648 30 857 31,791 6,800 9 971 5,142 9,878 26 903 Feb .... 90,370 62,276 30,9!1 31 ,’365 6,'636 9,665 5,422 9,642 28^094 1 Includes religious, educational, hospital, institutional, and other build­ 4 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 July 1962, reflects inclusion of new series affecting most Note.—Monthly data are at seasonally adjusted annual rates. Figures private nonresidential groups. for period shown are Census Bureau estimates. NEW HOUSING STARTS (In thousands of units) By area By type of ownership Annual rate, Government- S.A. underwritten (private only) Private Period Total N fa o rm n­ Total p M o e li t t r a o n ­ p m N o e l o i t t r n a o ­ n - Total fam 1- i ly fam 2- i ly M fam ul i t l i y ­ Public Total FHA VA 1959............................. 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 I960............................. 1,296 889 407 1,252 995 44 213 44 336 261 75 1961............................. 1,365 948 417 1,313 974 44 295 52 328 244 83 1962............................. 1,492 1,054 439 1'463 991 49 422 30 339 261 78 1963............................. 1,642 1,152 490 1,610 1,021 53 536 32 292 221 71 1964.............................. 1,562 1,093 470 1,529 972 54 505 32 264 205 59 1965.............................. 1,510 1'035 475 1J473 964 51 458 37 246 197 49 1966.............................. 1,196 '808 388 1,165 779 35 351 31 195 158 37 1967............................. 1,322 920 402 1,292 844 41 406 30 232 180 53 1968............................. '! ’548 1,118 '430 '1 '508 899 46 '562 40 283 227 56 1968--Feb.................... 1,537 1,499 87 62 26 85 55 3 26 3 21 17 4 Mar................... 1,511 1,479 129 92 37 127 79 4 43 2 24 20 5 Apr 1,591 1,562 165 119 47 162 98 4 60 3 28 23 5 May.................. 1 ’364 1,345 145 101 44 141 87 4 50 4 26 20 6 June.................. 1,365 1,348 143 104 39 138 81 5 51 5 25 20 5 July.................. 1,531 1,507 143 101 42 140 86 4 50 3 24 19 5 Aug............... 1318 1,496 141 101 40 137 83 4 50 4 26 21 5 Sept................... 1 ’592 1'570 140 103 37 134 80 4 50 6 23 19 5 Oct.......... 1,570 1,541 143 101 42 141 86 5 50 3 27 21 5 Nov................... 11733 1 ',705 130 97 33 127 65 3 59 2 22 18 4 Dec................... 1 ’509 1 '492 100 75 25 96 54 3 40 3 21 16 4 1969--Jan.................... Pl,842 Pl,908 Pl 04 80 25 Pl 00 51 3 46 "4 18 14 4 Feb.................... Pl joo Pl,678 *95 74 22 p91 49 3 39 P5 17 13 4 Note.—Census Bureau series for period shown except in the case of and Veterans Admin, and represent units started, based on field office Government-underwritten data, which are from Federal Housing Admin. reports of first compliance inspections. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 62 EMPLOYMENT □ APRIL 1969 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A, Period i T p n o s o N t p t i a t u . u S l l t a . n i A 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 U c o e . r l Total Total E In m c u n p o lt l n u o a r y a g e l r d i- 1 In U pl n o e y m ed ­ U (p n e m r e S r a m . e t c A e n p e . 2 t l n o t y ) ­ agriculture industries 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 3^79 2^875 3.8 1967.......................... 133,319 52,527 80,793 77,347 74,371 70,527 3; 844 2,975 3.8 1968.......................... 135,562 53,291 82,272 78,737 75,920 72,103 3^17 2’817 3.6 1968 3—Mar................ 134,904 53,965 82,137 78,645 75,764 71 ,786 3,978 2,881 3.7 Apr................ 135'059 53,919 81 ,933 78,427 75,653 71,737 3^916 2,774 3.5 May............... 135'249 53'479 82,278 78,742 75,932 72,027 3,905 2,810 3.6 June............... 135,440 50,986 82^86 78,919 76,005 72,156 3; 849 2,914 3.7 July................ 135,639 51,088 82,504 78,917 76,020 72,195 3,825 2,897 3.7 Aug................ 135,839 52,047 82,338 78,749 75,973 72,222 3^751 2 ,’776 3.5 Sept............... 136,036 53,900 82,438 78,847 76,000 72,349 3^651 2,847 3.6 Oct.......... 136^221 53,744 82,403 78,800 76,002 72,477 3,525 2’798 3.6 Nov............... 136,420 53^718 82,559 79'042 76,388 72,682 3; 706 2; 654 3.4 Dec........ 136,619 54,001 82,868 79,368 76,765 72,923 3,842 2,603 3.3 1969—Jan................. 136,802 55,091 83,351 79,874 77,229 73,477 3,752 2,645 3.3 Feb................ 136^40 54,361 83,831 80,356 77,729 73,848 3,881 2,627 3.3 Mar............... 137,143 54,373 83,999 80,495 77,767 74,035 3,732 2^28 3.4 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning Jan. 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t n r r a u c c t ­ T ti l o i r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1963.......................................................... 56.702 16,995 635 2,963 3,903 11,778 2,877 8,325 9,225 1964.......................................................... 58,332 17,274 634 3,050 3’951 12,160 2^57 8^09 9^96 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 9^51 101871 1967.......................................................... 661030 19’434 616 3’203 4,271 13’613 3,217 10,060 11,616 1968......................................................... 68,146 19’740 625 3’259 41348 14,111 3^57 10:504 12:202 SEASONALLY ADJUSTED 1968—-Mar............................................... 67,656 19,607 609 3,330 4,332 13,999 3,311 10,415 12,053 Apr............................................... 67,755 19,’657 632 3:313 4,331 i4;bO9 3,323 10,402 12:588 May............................. 67,792 19.693 631 3,245 4,281 14:049 3^34 10.425 12,134 June............................................ 68^039 19,777 632 3^174 4,336 14^86 3^35 10,467 12,232 July............................................... 68,170 19,776 638 3^189 4,346 14,117 3,350 10,498 12,256 Aug.. ........................................... 68,314 19'748 638 3,195 4,358 14,181 3,376 10^548 12,270 Sept.............................................. 68,382 19'755 639 3,252 4'365 14,222 3,387 10,545 12,217 Oct.............................................. 68:701 19^807 591 3’285 4’374 14',298 3,411 10,610 12.325 Nov.. ........................................... 68'955 19’871 637 3^79 4,392 14,326 3,426 10,702 12,322 Dec............................................... 69,310 19,974 638 3'387 4'400 14,271 3,442 10,755 12,443 1969—Jan................................................ 69,620 20,005 644 3,380 4,390 14,442 3,462 10,792 12,505 Feb.”............................................ 69’955 20'054 646 3,491 4'418 14J473 3,474 10^849 12^50 Mar.”.......................................... 70'102 20’118 647 3,428 4,448 14^03 3^83 10,871 12,604 NOT SEASONALLY ADJUSTED 1968—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 .............................................. 67,724 19,569 631 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 J 498 4,394 14,112 3,407 10,687 11,848 Aug............................................... 681508 19,884 653 3,553 4,410 14,141 3,430 10,675 11,762 Sept............................................... 68,923 20’023 646 3,515 4,417 14,208 3,397 10,587 12,130 Oct............................................... 69'292 19'999 593 3 J 498 4'400 14^28 3,404 10,631 12,439 Nov.............................................. 69'585 20,015 639 3,374 4,414 14,561 3,412 10,648 12,522 Dec............................................... 70,123 19*990 637 3^241 4'409 15,124 3,421 10,658 12,643 1969—Jan................................................ 68,525 19,786 629 3,015 4,324 14,217 3,420 10,576 12,558 Feb.”............................................ 68^711 19’864 628 2.981 4'338 14,124 3,439 10^665 12,672 Mar.”........................................... 69,172 19,952 631 3,054 4; 390 14,193 3,459 10,741 12^52 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. 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APRIL 1969 □ EMPLOYMENT AND EARNINGS A 63 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1968 1969 1968 1969 Mar. Jan. Feb J' Mar.7' Mar. Jan. Feb.7' Mar.a Total............................................................................... 14 386 14 692 1 4 738 1 4 778 14 248 1 4 499 14 570 14 633 Durable goods.................................................................. 8 371 8 604 8 616 8 656 8 325 8 530 8 552 8 604 Ordnance and accessories.............................. *191 *200 * 198 * 199 ’191 *202 ’199 *199 Lumber andiwood products................................. 528 540 537 537 509 512 51 3 517 Furniture and fixtures............................................ 385 407 411 411 382 405 406 408 Stone, clay, and glass products............................ 463 535 539 536 448 512 512 519 Primary metal industries........................................ 1 038 1 042 I 049 1 059 1 040 1 ,033 1 047 I 060 Fabricated metal products................................ 1 ’062 1 111 1,118 1 122 1*051 I 103 1 109 1*111 Machinery............................................................... 1 ’346 1 ,360 1,369 1'372 1 *357 1,360 1 *376 1 *382 Electrical equipment and supplies....................... 1*311 1 333 I 344 1 351 1 299 1 338 1 342 1 338 Transportation equipment................................... 1 *429 1 439 1 *420 1 *433 1 *445 1 456 I *436 1 *449 Instruments and related products........................ 278 *283 *283 *284 *277 282 *282 *283 Miscellaneous manufacturing industries............... 340 354 348 352 326 327 330 338 Nondurable goods........................................................... 6 015 6 088 6 122 6,122 5 923 5 969 6 018 6 029 Food and kindred products.......................... I ’ 181 1 ,203 1 *212 I 203 1 ’101 1,138 1,127 1’121 Tobacco manufactures........................................... * 74 ’ 73 ’ 71 ’ 71 ’ 67 72 ’ 68 65 Textile-mill products............................................. 867 880 879 876 863 868 872 873 Apparel and related products............................... 1 243 1 ,258 1 248 1 252 1 254 1 238 1 ,257 1 ,263 Paper and allied products...................................... '534 556 559 559 528 550 552 553 Printing, publishing, and allied industries.......... 662 673 673 671 661 668 670 670 Chemicals and allied products............................ 607 621 626 625 607 614 621 625 Petroleum refining and related industries............. 117 73 101 1 11 1 14 71 98 109 Rubber and misc. plastic products.............. 422 445 451 453 420 445 449 450 Leather and leather products................................. 308 306 302 301 308 305 304 300 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 1968 1969 1968 1969 1968 1969 Mar. Jan. Feb. a Mar. a Mar. Jan. Feb.x Mar.77 Mar. Jan. Feb. a Mar.a Total................................................................. 40 7 40 6 40 1 40 6 120 18 126 05 124 49 126.77 2 96 3 12 3 12 3.13 Durable goods..................................................... 41 4 41 2 40 8 41 3 129 68 136 04 134 39 136 78 3 14 3 31 3 31 3 32 Ordnance and accessories.............. 41 9 40* 1 40 4 400 133 95 135 34 135 47 134 13 3 22 3.35 3 37 3.37 Lumber and wood products..................... 40 5 40 0 40 9 40 8 100 50 102 56 104 26 106 11 2 50 2.59 2 60 2 62 Furniture and fixtures................................. 409 40 7 40'1 40 4 98.42 10l"20 100 98 102.40 2.43 2.53 2.55 2.56 Stone, clay, and glass products.................. 41 7 41 9 42 1 42 2 119.19 125 77 126 48 128.13 2 90 3.06 3.07 3 08 Primary metal industries........................... 41 8 41 .7 41.6 42 J 146.23 154 66 153.55 156,56 3’49 3.70 3.70 3.71 Fabricated metal products......................... 41 5 41 9 41 1 41 7 128 44 135 38 133 09 136 95 3 11 3 27 3 27 3.30 Machinery.......................................... 42 J 42 4 42 1 42 4 140.86 148.40 148^54 150.38 3 33 3.50 3.52 3.53 Electrical equipment and supplies............. 40.2 40.4 39 6 40 3 115.49 122.51 120.38 122.61 2.88 3.04 3.04 3.05 Transportation equipment........................ 42 4 41 .4 41 .2 41.2 151.62 160.19 155.47 155.86 3.61 3.86 3.82 3.82 Instruments and related products........ 40.8 40.7 39 8 40 4 119.66 125.15 123.78 125.33 2.94 3.09 3.11 3.11 Miscellaneous manufacturing industries... 39.5 39.1 37.7 38.5 98.60 100.62 98.40 100.36 2,49 2.60 2.61 2.60 Nondurable goods............................................... 39.8 39.7 39.2 39.6 106,79 111.50 110.48 112.58 2.69 2.83 2.84 2.85 Food and kindred products...................... 40.7 40.7 40 7 40,9 111,08 117.27 116.40 117.68 2.77 2.91 2.91 2.92 Tobacco manufactures............................... 37.9 36.9 38 3 36.2 92.01 92.78 94.84 93.81 2.48 2.57 2.62 2.65 Textile-mill products.................................. 41 .6 40.8 40.1 40,7 89.84 92.34 90.80 92.75 2.17 2.28 2.27 2.29 Apparel and related products.................... 36.2 36.2 35.3 35.7 80.15 81.40 80.13 83.03 2,19 2.28 2.27 2.30 paper and allied products.............. 42.7 43.3 42.4 43.3 125.93 135.14 132.30 135.45 2.97 3.15 3.15 3.15 Printing, publishing, and allied industries. 38.2 38.2 37’9 38.5 130.64 136.44 136.10 139.76 3.42 3.60 3.61 3.63 Chemicals and allied products.............. 41 .6 41.9 41.7 42.1 132.70 140.19 139.44 141.04 3.19 3.37 3.36 3.35 Petroleum refining and related industries . 42.2 41.8 42.6 42.8 154.24 152.40 162.18 167.06 3.69 3.69 3.88 3.94 Rubber and misc. plastic products....... 41 .4 41.4 40.6 40.8 117.14 124.73 120.60 121.50 2.85 3.02 3.00 3.00 Leather and leather products..................... 38.7 37.4 35.6 37.2 85.25 87.46 83.41 86.72 2.22 2.32 2,33 2.35 Note.—Bureau of Labor Statistics; data arc for production and related workers only. 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A 64 PRICES □ APRIL 1969 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow o n m e e r ­ ­ F a o u n i e d l l e G a l n e a c d s ­ n i a n i n s g h d s ­ up a k n e d e p p t o io rt n a­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d ­ O g a o t n o h d d e s r ship coal tricity opera­ care care recrea­ serv­ 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 1968—Feb................ 119.0 117.4 116,9 113.9 123.5 113.8 109.3 111.2 116.6 118,6 127,5 141.9 117.6 123.0 122.1 Mar............... 119.5 117.9 117.2 114.2 123.8 113.9 109.3 111.8 117,6 119,0 128.3 142,9 118,4 124.2 122.4 119.9 118.3 117.5 114.4 124.0 114.0 109.5 112.2 118.4 119.0 128.8 143.5 119.0 124.9 122.5 120.3 118.8 117.8 114.6 124.3 115.3 109.5 112.5 119,5 119.1 129.2 144.0 119.6 125.3 122.6 120.9 119.1 118.7 114.9 126.1 115.4 109,4 112.9 119.9 119.7 129.7 144.4 120.1 125.6 123.5 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......... 121.9 120.5 120.1 115.4 128.8 115.7 109.7 113.3 120.3 120.0 130.5 145.5 120.9 126.3 124.2 122.2 120.4 120.4 115.7 129,1 115.8 109.3 113.9 122,2 119.5 131.1 146,4 121,5 126,7 124.4 Oct................ 122.9 120.9 120.9 116.0 130,0 115.9 109.1 114.2 123,3 120.6 131,9 147.4 122.1 127.5 125.1 123,4 120,5 121.7 116.3 131.1 115.9 109.9 114.8 124.0 121,2 132,4 148.2 122.8 128.0 125.4 123.7 121.2 122.3 116.7 132.0 116.2 110,0 115.1 124.3 120,2 132,8 149.1 123.4 128.2 125.6 1969—Jan................ 124.1 122,0 122.7 116.9 132.7 116.7 110.2 115.2 123.4 120.7 133,3 150.2 123.7 128.4 125.6 Feb................ 124.6 121.9 123.3 117.2 133.6 116,9 110.2 115.8 123.9 122.0 133.7 151,3 124.1 128,4 125.8 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Pro­ All Farm cessed Ma­ Period m c t o i o e m d s i ­ ­ p u r c o t d s ­ f f o a e n e o d d d s s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e e u tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l c e s . t , ­ e c a q e h n r u i y d n i p ­ ­ F t e u u t r r c e n . , i ­ N t m m a o l i l e n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l s u a ­ s ­ ment erals ment1 1958............................. 100.4 103.6 102.5 99,5 98.9 96,0 98,7 100.4 100.1 97.4 100.1 99.1 100.0 100,2 99,9 n.a. 100.6 1959............................. 100.6 97.2 99.9 101.3 100.4 109.1 98.7 100,0 99.7 104.1 101.0 101.2 102.1 100.4 101,2 n.a. 100.8 I960............................. 100.7 96.9 100.0 101,3 101.5 105.2 99.6 100.2 99.9 100,4 101.8 101.3 102.9 100.1 101,4 n.a. 101.7 1961............................. 100.3 96.0 101.6 100.8 99.1 106.2 100.7 99.1 96.1 95,9 98.8 100.7 102.9 99,5 101.8 n.a. 102,0 1962............................. 100.6 97.7 102.7 100.8 100,6 107,4 100.2 97.5 93.3 96,5 100.0 100.0 102.9 98.8 101.8 n.a. 102.4 1963............................. 100.3 95.7 103.3 100.7 100,5 104,2 99.8 96.3 93.8 98.6 99.2 100.1 103.1 98.1 101.3 n.a. 103.3 1964............................. 100.5 94.3 103.1 101.2 101.2 104,6 97.1 96.7 92.5 100.6 99,0 102,8 103.8 98.5 101.5 n.a. 104.1 1965.............................. 102.5 98.4 106.7 102.5 101.8 109.2 98.9 97.4 92.9 101.1 99,9 105.7 105.0 98.0 101.7 n.a. 104.8 1966.............................. 105.9 105.6 113.0 104.7 102.1 119.7 101,3 97.8 94,8 105.6 102.6 108,3 108.2 99.1 102,6 n.a. 106.8 1967............................. 106.1 99.7 111.7 106.3 102.1 115.8 103.6 98.4 97,0 105.4 104.0 109,5 111,8 101.0 104.3 n.a. 109.2 1968—Feb................... 108.0 101.3 113,3 108.3 104.6 116.7 102.5 98.1 99.5 111,6 105.7 113.3 114.1 103.3 106.9 n.a. 111.3 Mar................... 108.2 102.1 112.9 108.6 104.6 117.9 102,0 98.6 99.7 113,9 105.2 113,8 114,3 103,6 107.3 n.a. 111.5 Apr................... 108.3 102.1 112.8 108.8 104.7 118.3 102.4 98,8 99.7 115.8 105.2 113.3 114.8 103.8 107.4 n.a. 111.8 May.................. 108.5 103.6 113.6 108.6 104.8 118.8 102.4 98.7 99.8 117.0 105.5 111.7 115,0 104,0 107,8 n.a. 111.8 108.7 102.5 114.6 108.8 105.2 118,7 103.7 98.5 99.9 117.2 104.7 111,7 115,0 103.9 108,3 n.a. 111.8 July................... 109.1 103.9 115.9 108.8 105.8 119.5 103.3 98.2 100.7 119.2 104.9 111,4 115.2 104.1 108.4 n.a. 111.5 108.7 101.4 114.9 108.9 106,0 119,5 102.6 98.1 100,6 120,5 104.9 111,3 115.4 104.2 108.7 n.a. 111.6 109.1 102.8 115,3 109.2 106.5 120,7 102.5 97.9 100.7 122.6 105.1 112,2 115.8 104.4 108.7 n.a. 111.9 109.1 101.2 114.4 109.7 107,0 122.3 101.9 97.8 101,0 124.9 105.2 112,5 116,1 104,5 108.9 n.a. 112.0 Nov................... 109.6 103,1 114.7 109.9 107.2 122,4 102.0 97,8 101 .i 126.8 105.2 112.4 116.6 104.7 109.2 n.a. 112,5 Dec................... 109,8 103,3 114,7 H10.2 107.1 122.8 102.2 97.7 101.1 133.5 105.2 112,8 116.7 105.0 109,3 100,0 112.5 1969—Jan.................... 110,7 104,9 116,0 110.9 107.4 123,5 120.4 97,6 100,0 137.8 106.2 114.4 117,0 105,3 110.6 100,1 112.5 Feb................... 111.1 105.0 116.3 111.4 107.2 123.4 102.7 97.8 100.5 144.5 106.8 115.2 117.3 105.4 111.2 100.1 112.5 1 For transportation equipment, Dec. 1968= 100. 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APRIL 1969 □ PRICES A 65 WHOLESALE PRICES: DETAIL (1957-59= 100) 1968 1969 1968 1969 Group Group Feb. Dec. Jan. Feb. Feb. Dec. Jan. Feb. Farm products: Pulp, paper, and allied products: Pps^ and drie-d produce..................... 112.5 109,3 112,0 108,7 Pulp, paper, and products, excluding Cjrains ................... 86.3 80.4 82.5 82.0 building paper and board........... 106.2 105.6 106.6 107.1 T ivpctnplz' .............. 102.7 104.2 106.1 109.2 Woodpulp............................................ 98.0 98,0 98.0 98.0 T1- /11VV/C* np<rtJiUilLflrlv,y . . •............................................. 87.0 82.9 90.5 94.3 Wastepaper.......................................... 81 8 109,6 107.4 107.8 76.5 69.0 68.8 67.7 Paper................................................... 111.9 113.4 115,0 115.7 124.6 132.3 131.8 132.6 Paperboard.......................................... 97,3 91.4 92,2 92.6 Enas..............................-.............. 80.0 117.8 122.3 108.1 Converted paper and paperboard.... 107,0 105.4 106.3 106.8 XTnv and caaHq . ... .......... 113.0 108.8 111.5 112.4 Building paper and board.................. 91,8 94.8 97.3 98.2 O(her farm products............................ 101.1 107.7 105.9 106.4 Metals and metal products: Processed foods and feeds: cereal anu naKcry pxuuuna................ 117.4 119.3 119.3 119.3 Iron and steel...................................... 105.7 106.1 107.5 108.0 107.6 107.3 111.1 Hl.4 Steelmill products................................ 107.7 109.1 110,4 110.7 124.0 130 4 130.1 130,2 Nonferrous metals............................... 131.1 123.5 127.2 128.9 Processed fruits and vegetables........... 113.8 113^3 113.6 114,5 Metal containers................................. 113.4 117.0 117,0 119,4 113.7 118.8 119.2 119.2 Hardware............................................. 116.6 117,7 1 18.5 119,0 Beverages and beverage materials.... 108.6 110.6 110.8 111.1 Plumbing equipment........................... 113.3 115,3 115.8 116.1 71.0 74.1 84.0 90,3 Heating equipment.............................. 93.8 96.0 96.1 96,3 Crude vegetable oils................ 93.0 78.0 80.4 83 4 Fabricated structural metal products. 106.4 109.0 109.3 109.4 DAfinpri vf»0AfnlllA Alls ........... 102.1 90.0 91.5 95.0 Miscellaneous metal products.......... 115.3 118.3 119.6 120.4 Vegetable oil end products.......... 100 2 100.5 101 I 102.9 M M i a s n c u e f ll a a c n t e u o re u d s p a r n o im ce a s l s e f d e e f d o s o .. d .. s .. . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 4 9 . . 1 7 1 1 1 1 8 8 . . 2 2 1 11 1 8 8 ^ .2 2 1 1 1 1 9 7 . . 1 5 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 125.8 130.1 131.2 131.6 Construction machinery and equip... 127.7 132.7 (33.5 133.6 Cotton products................................. 105.0 105.1 104 8 104.8 Metalworking machinery and equip.. 126.6 130.5 131.0 131 ,1 Wool products.................................... 102.8 104.6 104 7 104 4 General purpose machinery and Man-made fiber textile products........ 89.6 92.9 92.8 92.3 116.0 1 18.3 118,5 119. I Silk yarns............................................ 197.2 165.2 160.8 156,4 Special industry machinery and Anna 1 108.8 111.9 112.7 112,7 equipment (Jan. 1961= 100)........... 120,1 125.0 125.6 126.6 T1*CmArLtiLl01V> hIInUtUtcaVAI fumM1tasBhUinMo^s9 . • • .>..•.•..•..•.•..•.•..■.. .• 1 1 1 1 0 1. , 2 4 1 1 2 1 5 0 . . 3 2 1 1 2 1 6 0, . 2 2 1 1 0 2 7 7 , , 6 1 M El i e s c c t e ri ll c a a n l e m ou a s c h m in a e c r h y in an er d y . e .. q .. u .. i . p .. . . . . . . . . . . . . . . . . . . . 1 1 1 0 2 2 . . 3 7 1 1 1 03 5 . . 5 6 1 1 1 0 5 3. . 5 7 1 1 1 0 6 3 , . 1 5 Hides, skins, leather, and products: Furniture and household durables: Hides and skins............................... 89 5 106.8 109.2 106.3 Tucaiuci 108.9 115.8 116,8 116.5 Household furniture.......................... 115,7 119,2 120.7 121.0 Pnntwpar ........ ............. 125.5 131.7 132.1 132.2 Commercial furniture....................... 113.4 117.0 117,0 117.2 112.2 113.8 114.2 114.8 Floor coverings................................... 94.8 94.8 95.5 95.5 Household appliances......................... 91.6 92.9 92.6 92.5 Fuels and related products, and power: Home electronic equipment............... 81.7 79.8 78.7 78.7 Other household durable goods........ 123.9 127.3 128.9 129.1 Coal ■ • ,........................................... 105.0 1 12.7 112.7 112,7 C C o as k e fu .. e .. l . s .. . ( .. J . a .. m ... .. 1 .. 9 .. 5 .. 8 . ^ . .. 1 .. 0 .. 0 ... ) . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 1 3 2 . . 3 0 1 1 2 2 0 0 , , 9 3 1 1 2 2 4 0. . 3 4 1 1 2 2 0 4 . . 3 0 Nonmetallic mineral products: Electric pow^r (inn- 195R= 100)......... 101.1 102.1 102 0 102,2 99.0 99.7 99*7 99.9 Flat glass.............................................. 107.2 1 10.0 109.9 110.8 99.5 99.0 98.9 99.5 Concrete ingredients........................... 108.5 110,2 112.2 113 5 Concrete products...................... 106.8 109,5 110.7 110'8 Chemicals and allied products: Structural clay products excluding refractories................................... 111,9 115.4 115.8 115.9 98.5 97.9 98.1 98.1 Refractories......................................... 112.4 112.6 112.6 112.6 113.2 115.9 118.2 118.2 Asphalt roofing................................... 98.0 96. 8 96.8 99.6 Pamt materials................................. 92.6 91 9 92.0 92.0 Gypsum products............................... 105.1 106.2 106 2 106.2 Drugs and pharmaceuticals 93.0 93,6 93.4 93.4 Glass containers.................................. 106.3 110,3 H6J 116,1 inedinlft . 76.7 69.8 72.2 73.6 Other nonmetallic minerals............... 103.7 106.8 107,2 107.6 Agricultural chemicals and products.. 100.6 96.4 92.9 92.2 PfaSth? resiDI® aud materials............ 83.3 80.5 80.8 81 5 Other chemicals and products........... 108.7 110.3 110.4 111 J Transportation equipment: Rubber and products: Motor vehicles and equipment.......... 104.3 106.6 106.5 106.4 Railroad equipment (Jan. 1961= 100). 105.4 108.5 108.5 108.5 Crude rubber. .................>... 83.2 86.8 86.4 87.5 Tires and tubes.................................... 98.7 99.5 96.3 96.3 Miscellaneous rubber products....... 106.8 108.3 108.7 109.5 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................. 106.6 109.3 110.2 110,1 T timber ..................................... 117. 1 142.2 147.9 155 8 Tobacco products............................... 114.8 116,5 116.6 116,7 MJfiwofk . - ...................................... 114.7 123,8 124.8 126.7 Notions................................................ 105.7 100.7 100.7 100.7 Plywood........................................ 94.6 128,9 135.0 146.5 Photographic equipment and supplies 114.8 113.2 112.7 112.7 Other wood products (Dec. 1966= 100) 105,9 110,3 111.0 111.2 Other miscellaneous products........... 109.9 112.0 Hl.2 III.2 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 □ APRIL 1969 GROSS NATIONAL PRODUCT (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968 IV I II III IV Gross national product..................................... 103.1 55.6 124.5 284.8 632.4 684.9 747.6 789.7 860.6 811.0 831.2 852.9 871.0 887 4 Final purchases................................................. 101.4 57.2 120.1 278.0 626.6 675.3 732.8 783.6 852.9 802.7 829.1 842 1 863.5 876 8 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 401.2 432. 8 465.5 492.2 533.8 502.2 519.4 527.9 541.1 546 8 Durable goods........................................ 9.2 3.5 9.6 30 5 59.2 66. 3 70.5 72.6 82.5 74.2 79 0 81.0 85.1 85 1 Nondurable goods........................................ 37.7 22.3 42.9 98.1 178.7 191.1 206.7 215.8 230.3 218.4 226.5 228.2 232 7 233 7 Services............................................ 30.3 20.1 28.1 62.4 163.3 175.5 188.3 203. 8 221.0 209.6 213.9 218.7 223.4 228^0 Gross private domestic investment................... 16.2 1.4 17.9 54.1 94.0 108.1 120.8 114.3 127.7 121.8 119.7 127.3 127.1 136.6 Fixed investment........................................... 14.5 3.0 13.4 47.3 88.2 98.5 106.1 108.2 119.9 113.5 117 6 116 5 119.6 126 0 Nonresidentlal........................................... 10.6 2.4 9.5 27.9 61.1 71.3 81.3 83.6 90.0 85.0 88 6 87.0 90.1 94 3 Structures.............................................. 5.0 .9 2.9 9.2 21,2 25.5 28.5 27.9 29.2 27.7 29.6 28.5 28.8 29*9 Producers* durable equipment........ 5.6 1.5 6.6 18.7 39.9 45.8 52.8 55.7 60. 8 57.3 59.0 58.5 61.3 64.5 Residential structures............................... 4.0 .6 3.9 19.4 27.1 27.2 24.8 24.6 29.9 28.5 29.1 29.5 29.5 31.6 Nonfarm................................................ 3.8 .5 3.7 18.6 26.6 26.7 24.3 24.0 29.3 27.9 28.5 28.9 28.9 31 0 Change in business inventories............... 1.7 — 1.6 4.5 6 8 5.8 9.6 14.7 6 1 7.7 8.3 2 I 10.8 7.5 10.6 Nonfarm.................................................... 1.8 — 1.4 4.0 6.0 6.4 8.6 14.9 5.6 7. 3 7.1 1.6 10.4 7.3 9.7 Net exports of goods and services................... 1.1 .4 1.3 1.8 8.5 6.9 5.1 4.8 2. 0 3.4 1.5 2.0 3.3 1.0 Exports...................................................... 7.0 2.4 5.9 13,8 37.1 39.2 43.1 45 8 50.0 46.0 47 5 49.9 52.6 50.1 Imports.......................................................... 5.9 2.0 4.6 12.0 28.6 32. 3 38.1 41.0 48. 1 42.6 46.0 47.9 49.4 49.1 Government purchases of goods and services. . 8.5 8.0 24.8 37.9 128.7 137.0 156.2 178.4 197.2 183.5 190.5 195.7 199.6 203.0 Federal........................................................ 1.3 2.0 16.9 18.4 65.2 66.9 77.4 90.6 100.0 93.5 97.1 100.0 101.2 101.7 National defense....................................... 13.8 14.1 50.0 50. 1 60.6 72.4 78.9 74.6 76.8 79.0 79.6 80.0 Other.......................................................... 3.1 4.3 15.2 16.8 16.8 18.2 21.1 19.0 20.3 21.0 21,5 21 .7 State and local.............................................. 7.2 6.0 7.9 19.5 63.5 70.1 78.8 87.8 97.2 90.0 93.4 95.6 98.4 101.2 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 581.1 617.8 657.1 673.1 706.7 681.6 692.7 703.4 712.3 718.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally series, see the Survey of Current Business, July 1968, and Supplement, Aug. adjusted totals at annual rates. For back data and explanation of 1966. NATIONAL INCOME (In billions of dollars) 1967 1968 1929 1933 1941 1950 1964 1965 1966 1967 I968» Item IV I II III IV* National income................................................ 86.8 40.3 104.2 241.1 518.1 564.3 620.8 652.9 712.8 670.9 688.1 705.4 722.5 735.2 Compensation of employees............................. 51.1 29.5 64.8 154.6 365.7 393.8 435.6 468.2 513.6 482.7 496.8 507.1 519.7 530.7 Wages and salaries....................................... 50.4 29.0 62.1 146.8 333.7 358.9 394.6 423.4 463.5 436.4 448.3 457.6 469.0 479.0 Private....................................................... 45.5 23,9 51.9 124.4 269.4 289.6 316.9 337.1 367.2 346.0 355.7 362.8 370.9 379.2 Military...................................................... .3 .3 1.9 5.0 11.7 12.1 14.6 16.3 18.3 17.1 17.5 17.8 18.9 18.8 Government civilian................................. 4.6 4.9 8.3 17.4 52.6 57.1 63.1 70.0 78.1 73.3 75.2 77.0 79.1 81.1 Supplements to wages and salaries............... .7 .5 2.7 7.8 32.0 35.0 41.1 44.8 50.1 46.2 48.4 49.4 50.7 51.7 Employer contributions for social in­ surance .............................................. .1 .1 2.0 4.0 15.4 16.2 20.2 21.5 23.9 22.1 23.5 23.7 24.2 24.4 Other labor income.................................. .6 .4 .7 3.8 16.6 18.7 20.8 23.3 26.1 24.2 25.0 25.7 26.5 27.3 Proprietors* income.......................................... 15.1 5.9 17.5 37.5 52.3 57.3 60.7 60.7 62.9 61.1 61.8 62.6 63.4 63.7 Business and professional........................... 9.0 3.3 11.1 24.0 40.2 42.4 44.8 46.3 47.8 46.8 47.2 47.8 48.0 48.2 Farm............................................................ 6.2 2.6 6.4 13.5 12.1 14.8 15.9 14.4 15.1 14.3 14.6 14.8 15.4 15.5 Rental income of persons................................. 5.4 2.0 3.5 9.4 18.0 19.0 19.8 20.3 21.0 20.5 20.7 20.9 21.0 21.2 Corporate profits and inventory valuation adjustment.................................................. 10.5 -1.2 15.2 37.7 66.3 76.1 83.9 80.4 89.2 82.3 83.8 89.2 91.6 92.0 Profits before tax....................... 10.0 1.0 17.7 42.6 66.8 77.8 85.6 81.6 92.3 85.4 88.9 91.8 92.7 95.8 Profits tax liability.................................... 1.4 .5 7.6 17.8 28.3 31.3 34.6 33.5 41.3 35.1 39.8 41.1 41.5 42.9 Profits after tax......................... 8.6 .4 10.1 24.9 38.4 46.5 51.0 48.1 51.0 50.3 49.1 50.7 51.2 52.9 Dividends............................................... 5.8 2.0 4.4 8.8 17.8 19.8 21.7 22.9 24.6 22.5 23.6 24.4 25.2 25.4 Undistributed profits........................... 2.8 -1.6 5.7 16.0 20.6 26.7 29.3 25.2 26,4 27.9 25.5 26.3 26.0 27.6 Inventory valuation adjustment.......... .5 -2.1 -2.5 -5.0 -.5 -1.7 -1.7 -1.2 -3.1 -3.1 -5.1 -2.7 -1.0 -3,8 Net interest........................................................ 4.7 4.1 3.2 2.0 15.8 18.2 20.8 23.3 26.3 24.3 25.0 25.8 26.7 27.6 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

APRIL 1969 n NATIONAL PRODUCT AND INCOME A 67 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1967 1968 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968* IV I II III IV” Gross national product..................................... 103.1 55.6 124.5 284.8 632.4 684.9 747.6 789.7 860.6 811.0 831.2 852.9 871.0 887.4 Less’ Capital consumption allowances......... 7.9 7.0 8.2 18.3 56.1 59.8 64.1 69.2 74.3 71.1 72.3 73.7 74.9 76.2 Indirect business tax and nontax lia­ bility. ............................................ 7.0 7.1 11.3 23.3 58.4 62.5 65.3 69.6 75.8 71.2 72.8 74.8 76.7 79.0 Business transfer payments.......... .6 .7 .5 .8 2.5 2.7 3.0 3. 1 3.3 3.2 3.2 3.3 3.3 3.3 Statistical discrepancy........................... .7 .6 .4 1.5 -1.3 -3.1 -3.3 -3.5 -4.8 -4.2 -4.7 -3.6 -5.3 -5.6 Plus: Subsidies less current surplus of gov­ ernment enterprises............ -.1 .1 .2 1.3 1.3 2.3 1.6 .7 1.3 .5 .7 1.0 .6 Equal*! National income.................................. 86.8 40.3 104.2 241.1 518.1 564.3 620.8 652.9 712.8 670.9 688.1 705.4 722.5 735.2 Less: Corpor&te profits and inventory valu­ ation adjustment................ 10.5 -1.2 15.2 37.7 66.3 76.1 83.9 80.4 89.2 82.3 83.8 89,2 91.6 92.0 Contributions for social insurance.... .2 .3 2.8 6.9 27.9 29.6 38.0 41.9 46.9 43.0 45.8 46.5 47.4 47.8 Excess of wage accruals over disburse­ ments ............................................. Plus" Government transfer payments........... <9 1.5 2.6 14.3 34.2 37.2 41.0 48.6 55. 3 49.7 52.5 55.0 56.3 57.5 Net interest paid by government and consumer........................................ 2.5 1.6 2,2 7.2 19.1 20.5 22.3 23.6 25.9 24.2 24.9 25.7 26.2 26.7 Dividends.............................................. 5.8 2.0 4.4 8.8 17.8 19.8 21.7 22.9 24.6 22.5 23.6 24.4 25,2 25.4 Business transfer payments.................. .6 .7 .5 .8 2.5 2.7 3.0 3.1 3.3 3.2 3.2 3.3 3.3 3.3 Equals; Personal income.................................. 85.9 47.0 96.0 227.6 497.5 538.9 586.8 628.8 685. 8 645.2 662.7 678.1 694.3 708.2 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 59.4 65.7 75.3 82.5 96.9 85.6 88.3 91.9 101.6 105.8 Equal*! Disposable personal income............... 83.3 45.5 92.7 206.9 438.1 473.2 511.6 546.3 589.0 559.6 574.4 586.3 592.7 602.4 Less’ Personal outlays.................................... 79.1 46.5 81.7 193.9 411.9 444.8 478.6 506.2 548.2 516.1 533.5 542.3 555.6 561.6 Personal consumption expenditures.. 77.2 45.8 80.6 191.0 401.2 432.8 465.5 492.2 533.8 502.2 519.4 527.9 541.1 546.8 Consumer interest payments....... 1.5 .5 .9 2.4 10.1 11.3 12.5 13.1 13.7 13.3 13.4 13.6 13.8 14.0 Personal transfer payments to for­ eigners ....................................... .3 .2 .2 .5 .6 .7 .6 .8 .7 .7 .7 .8 ,7 .7 Equals: Personal saving.................................. 4.2 -.9 11.0 13.1 26.2 28.4 32.9 40.2 40.7 43.4 40.8 44.0 37.1 40.9 Disposable personal income in constant (1958) 150.6 112.2 190.3 249.6 407.9 435.0 459.2 478.0 497.5 483.7 491.8 497.1 499.2 501.7 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted quarterly totals at annual rates. See also Note to table opposite. PERSONAL INCOME (In billions of dollars) 1968 1969 Item 1967 1968 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.” Total personal income......................... 628.8 685.8 663.0 670.0 672.6 678.2 683.7 689.2 694.1 699.7 703.2 708.0 713.5 716.1 721.4 Wage and salary disbursements.......... 423.4 463.5 449.7 452.2 453.2 457.5 462.2 465.4 468.7 472.8 474.9 478.9 483.3 486.5 490.7 Commodity-producing industries... 166.6 180.6 176.6 177.0 176.7 179.3 179.9 180.6 181.1 183,3 184.7 186. 1 188.5 189.2 190.9 Manufacturing only..................... 134.1 145.4 141.6 142.2 141.6 144.3 145.6 146.0 146.3 147,8 148.8 149.7 151.1 151.9 152.8 Distributive industries..................... 100.5 109.4 105.9 106.5 106.9 107.4 109.7 109.9 111.2 112,1 112.1 113.3 113.2 114.8 115.7 Service industries............................. 70.0 77.2 74.6 75,2 75.5 76.1 77.0 77.5 78.2 78,8 79.1 79.8 80.7 81.6 82.8 Government..................................... 86.3 96.3 92.6 93.4 94.2 94.7 95.5 97.4 98.2 98.6 99.0 99.6 100.9 100.8 101.3 Other labor income............................. 23.3 26.1 25.0 25.2 25.5 25.7 26.0 26.3 26.5 26.8 27.0 27.3 27.6 27.8 28.0 Proprietors’ income............................. 60.7 62.9 61.8 62.3 62.4 62.6 62.7 63.1 63.4 63.7 63.7 63.7 63.8 63.8 63.7 Business and professional............... 46.3 47.8 47.2 47.5 47.6 47.8 47.9 48.0 48.0 48.0 48.1 48.2 48.3 48.4 48.5 Farm................................................ 14.4 15.1 14.6 14.8 14.8 14.8 14.8 15.1 15.4 15.7 15.6 15.5 15.5 15.4 15.2 Rental income...................................... 20.3 21.0 20.7 20.7 20.8 20.9 20.9 21.0 21,0 21.1 21.2 21.2 21.3 21.3 21.4 Dividends............................................ 22.9 24.6 23.6 23.9 24.3 24.7 24.3 25.0 25.2 25.3 25.3 25.4 25.5 25.3 25.4 Personal interest income.................... 46.8 52.1 49.8 50.2 50.8 51.3 51.9 52.4 52,9 53.4 54.0 54.3 54.7 55.1 55.6 Transfer payments.............................. 51.7 58,6 54.9 57.8 58,1 58.2 58.5 59.1 59.6 59.9 60.4 60.8 61.0 61.7 62.2 Less: Personal contributions for social insurance.................................... 20.4 22.9 22.4 22.4 22.6 22.8 22.9 23.1 23.2 23.3 23.4 23.5 23.5 25.4 25.6 Nonagricultural income....................... 609.3 665,4 643.1 649.9 652.5 658.1 663.4 668.7 673.3 678.6 682.2 687.0 692-5 695.1 700.6 Agriculture income............................... 19.5 20.5 20.0 20.1 20.1 20.2 20.2 20.5 20.8 21.1 21.0 21.0 21.0 21.0 20.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 68 FLOW OF FUNDS □ APRIL 1969 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1966 1967 1968 Transaction category, or sector 1963 1964 1965 1966 1967 HI IV I II III IV I II III I. Saving and investment 1 Gross national saving........................ 144.5 160.3 181.6 196.7 192.1 196.7 202.5 188.2 185.8 193.2 200.2 202.4 211.1 218.0 1 2 Households.................................... 85.8 98.3 108.9 118.6 129.6 118.5 125.3 125.3 125,4 129.6 137.1 138.1 144,3 139.8 2 3 Farm and noncorp, business........ 13.5 14.5 15.2 15.9 16.8 15.7 17.0 17.1 17.0 17.0 16.2 17.4 17.6 18.0 3 4 Corporate nonfin. business.......... 43,9 50.5 56.6 61.1 61,5 61.0 63.9 60.2 60.6 61.8 63.5 60.2 64.4 66,0 4 5 U.S. Government......................... -.6 -4.3 -.1 -.6 -14.1 -1.4 -4.0 -12.7 -15.3 -14.1 -14.3 -9.8 -12.2 -3.4 5 6 State and local govt...................... -1.5 -1.4 -2.4 -2.7 -5.6 -2.3 -3.7 -5.7 -6.7 -5.3 -4.6 -5.6 -5.1 -5.3 6 7 Financial sectors........................... 3.5 2.7 3.5 4.5 3.8 5.1 4.1 4.0 4.7 4.3 2.2 2.2 2.0 2.9 7 8 Gross national investment................. 143.8 158.0 178.2 193.1 188.1 193.6 197.8 184.4 179.4 190.7 196.8 195.8 205.6 214.2 8 9 Consumer durable goods............. 53.9 59.2 66.3 70,5 72,6 71.0 71.1 69.8 72.4 73.1 74.2 79.0 81.0 85,1 9 10 Business inventories...................... 5.9 5.8 9.6 14.7 6.1 12.8 19.8 8.4 2.3 5.3 8.3 2.0 10.8 7.5 10 11 Gross pvt. fixed investment......... 81.3 88.2 98.5 106,1 108.2 107.0 105.9 104.6 105.4 109,3 113.5 117.6 116,5 119.6 11 12 Households................................ 22.4 23,0 22.9 21,5 20.3 21.5 18.9 17.6 18.4 21.5 23.6 25.0 25,3 25.2 12 13 Nonfinan. business................... 57.9 64.3 74.8 83,6 87,0 84.6 86.0 86.2 86.1 86.7 88.9 91.4 90,0 93.2 13 14 Financial sectors....................... 1.0 .9 .8 1 .0 .9 1 .0 1 .0 .8 .8 1.1 .9 1.2 1.2 1.2 14 15 Net financial investment............... 2.8 4.7 3.7 1.8 1.2 2.8 1.0 1.6 -.6 2.9 .7 -3.0 -2.7 2.1 15 16 Discrepancy (1-8)............................. .6 2.3 3.5 3.6 4.0 3.0 4.7 3.8 6.4 2.5 3.4 6.7 5.5 3.8 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 58.5 67.0 72.3 69.9 83.1 62.6 49.9 74.3 44.3 104.6 108.9 104.1 74.8 119.6 17 18 Loans and short-term securities.... 19.0 26.4 33.1 27.4 27.2 30.7 29.8 33.8 -16.1 46,8 44.2 51.0 11.2 40.3 18 19 Long-term securities and mtgs......... 39.5 40.6 39.2 42.5 55.9 31.9 20,0 40.6 60.4 57.8 64.7 53.0 63.5 79.3 19 By sector 20 U.S. Government............................. 5.0 7.1 3.6 6.3 12.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.3 .6 32.4 20 21 Short-term mkt. securities........... 1.4 4.0 3.5 2.2 6.4 7.6 10.1 9.9 -35.7 30.9 20.7 29.8 -17.3 3.8 21 22 Other securities............................. 3.6 3.0 .2 4.1 6.2 -2.7 -7.2 -1.9 14.5 3.9 8.5 4.5 17.9 28.6 22 23 Foreign borrowers........................... 3.3 4.4 2.6 1.5 4.0 -.4 1.2 5.5 3.7 3.9 2.8 4.5 2.2 3.2 23 24 Loans............................................. 2.2 3.7 1.9 1.0 2.7 -.4 1.0 4.5 2.7 2.2 1.4 3.0 1.7 2.2 24 25 Securities........................................ 1.1 .7 .8 .5 1.3 .2 1.0 1.0 1.6 1.4 1.5 .5 1.0 25 26 Pvt. domestic nonfin. sectors........... 50.2 55.5 66.0 62.0 66.4 58.0 45,7 60,8 61.9 66.0 76.9 65.2 71.9 84.0 26 27 Loans............................................. 15.5 18.7 27.7 24,1 18.0 23.4 18.7 19.4 16,9 13.7 22.1 18.3 26.8 34.3 27 28 Consumer credit......................... 7.3 8.0 9.4 6.9 4.4 6.8 4.6 4.1 4.0 4.9 4.8 9.0 9.4 12.9 28 29 Bank loans n.e.c........................ 5.4 6.5 13.6 9.8 9.1 9.0 5.2 6.7 11.7 3.8 14.4 3.6 14.4 10.3 29 30 Other loans................................. 2.7 4.1 4.7 7.4 4.5 7.7 9.0 8.6 1.3 5.1 2.9 5.7 3.0 11.1 30 31 Securities and mortgages............. 34.7 36.9 38.3 37.9 48.4 34.6 27,0 41.4 44.9 52.3 54.8 47.0 45.1 49.7 31 32 State and local obligations........ 6.7 5.9 7.3 6.0 10.1 4.6 6.1 10.3 11.5 7.5 11.2 10.0 6.8 12.8 32 33 Corporate securities................. 3.6 5.4 5.4 11.4 17.4 11.3 6.6 14.3 15.8 21.4 18.1 12.5 13.1 11.8 33 34 1- to 4-family mortgages........... 15.2 15.7 16.2 11.0 11.5 9.1 S.l 8.9 8.3 13.7 15.1 15.4 14.1 15.1 34 35 Other mortgages........................ 9.3 10.0 9.4 9.6 9.4 9.6 6.2 7.9 9.3 9.8 10.4 9.1 11.1 10.0 35 36 Net sources of credit (=” line 17).. .. 58.5 67.0 72.3 69.9 83.1 62.6 49.9 74.3 44.3 104.6 108.9 104.1 74.8 119.6 36 37 Chg. in U.S, Govt, cash balance.. -.4 .2 -1.0 -.4 1.2 -6.2 1.2 -.5 -14.8 13.4 6.8 -5.5 -19.4 25.6 37 38 U.S. Govt, lending....................... 2.7 3.8 4.7 7.9 4.5 7.8 2,8 6.1 -.8 5.0 8.0 14.0 8.1 6.9 38 39 Foreign funds................................ 1.9 2.5 .8 -.9 5.4 -5.3 -1.2 1.4 8.3 2.4 9.4 -.6 -.3 ' .8 39 40 Pvt. insur. & pension reserves.... 10.1 11.1 11.6 12.8 13.2 13.1 14.5 12.2 12.4 14.0 14.1 13.1 14.6 16.0 40 41 Sources n.e.c............................ 4.7 5.7 7.1 7.7 5.8 14.1 -.8 1.8 6.0 11.5 3.9 14.1 20.9 9.2 41 42 Pvt. domestic nonfln. sectors....... 39.5 43.8 49.0 42,8 53.0 39.0 33.5 53,3 33.1 58.5 66.9 69.0 50.9 61.2 42 43 Liquid assets............................. 37.4 33.0 43.4 23.9 49.1 18.5 22.1 54.4 38.4 58.7 44.8 50.8 32.9 56.5 43 44 Deposits................................. 34.4 35.3 40.4 22.7 50,9 15.8 21.2 61.5 51.7 56.2 34.1 35,5 32.0 52.7 44 45 Demand dep. and currency 5.9 6.5 7.7 2.9 12.0 -.5 6.5 10.8 10.6 15.2 11.1 2.3 13.0 5.9 45 46 Time and svgs. accounts... 28.5 28.8 32.7 19.8 39.0 16.4 14.6 50.7 41.0 41.0 23.0 33.1 19.0 46.8 46 47 At commercial banks.... 13.4 13.0 19.5 12.5 22.4 11.1 5.4 33.8 20.4 23.0 12.3 20.6 5.2 33.2 47 48 At savings instlt.,........... 15.1 15.8 13,2 7.3 16.6 5.3 9.3 16.9 20.6 18.0 10.7 12.6 13.8 13.6 48 49 Short-term U.S. Govt. sec... 3.0 -2.3 3.0 1.2 -1.8 2.7 .9 -7.1 -13.3 2.5 10.6 15,3 .9 3.8 49 50 Other U.S. Govt, securities.... 1.7 3.1 .1 6.8 -1.2 3.3 4.3 -11.2 -3.9 -3,3 13.7 -4.0 9.6 1.2 50 51 Pvt. credit mkt. instruments... 2.3 7.5 5.9 11.9 7.2 15.4 6.5 9.6 1.2 6.2 11.9 19.7 11.3 6.3 51 52 Less security debt..................... 2.0 -.2 .3 -.2 2.2 -1.9 -.6 -.5 2.5 3.1 3.5 -2.6 2.8 2.8 52 III. Direct lending in credit markets 53 Total funds raised............................. 58.5 67.0 72.3 69.9 83.1 62.6 49.9 74.3 44.3 104.6 108.9 104,1 74.8 119.6 53 54 Less change in U.S. Govt, cash.... -.3 .2 -1.0 -.4 1.2 -6.1 1.2 -.6 -14.9 13.4 6.7 -5.8 -19.4 25.5 54 55 Total net of U.S. Govt, cash......... 58.8 66.8 73.3 70.3 81.9 68.7 48.7 74.9 59.1 91.2 102.2 109.8 94.1 94.1 55 56 Funds supplied directly to cr. mkts.. 58.8 66.8 73.3 70.3 81.9 68.7 48.7 74.9 59.1 91.2 102.2 109.8 94.1 94.1 56 57 Federal Reserve System............... 2.6 3.2 3.8 3.3 3.9 6.6 4.2 2.9 -.3 7.9 4.5 8.3 4.0 10.1 57 58 Total................................ 2.9 3.4 3.8 3.5 4.8 5.0 4.3 5.2 2.9 3.7 6.9 5.3 5.7 7.3 58 59 Less change in U.S. Govt. cash. .3 .2 .2 .9 -1.6 .1 2.4 3.2 -4.2 2.4 -3.0 1.7 -2.8 59 60 Commercial banks, net................. 19.7 21.8 29.3 17.9 35.9 14.1 6.8 41.9 40.3 37.2 24.6 24.5 38.0 38.1 60 61 Total.......................................... 19.4 22.4 29.1 17.4 36.4 9.6 7.9 39.7 22.3 54.8 28.9 21.7 17.6 66.5 61 62 Less chg. in U.S. Govt. cash... -.6 * -1.0 -.5 .2 -4.5 1.1 -3.0 -18.1 17.6 4.4 -2.8 -21.1 28.3 62 63 Security issues....................... .3 .6 .8 .1 .2 * * .8 .1 ♦ — ♦ .7 .2 63 64 Nonbank finance, net................... 28.0 29.1 26.9 22.5 32.4 21.0 24.2 29.0 35.0 38.1 27.4 28.1 27.7 29.2 64 65 Total........................................... 34.4 33.5 32.9 25.8 33.6 21.7 27.2 30.9 19.3 51.0 33.0 28.7 30.8 46.1 65 66 Less credit raised....................... 6.4 4.4 5.9 3.3 1.2 .7 2.9 1.9 -15.7 12,9 5.7 .6 3.1 16.9 66 67 U.S. Government......................... 2.7 3.8 4.7 7.9 4.5 7.8 2.8 6.1 -.8 5.0 8.0 14.0 8.1 6.9 67 68 Foreign........................................... .9 .6 -.1 -1.4 3.2 -4.1 -1.6 3.3 3.6 .9 5.1 1.5 -2.5 1.5 68 69 Pvt. domestic nonfin..................... 5.1 8.5 8.6 20.1 2.0 23.2 12.3 -8.1 -18.6 2.3 32.7 33.6 19.0 8.4 69 70 Households................................ .4 3.2 2.2 10.5 -4.0 11.0 1.9 -13.1 -18.1 -1.3 16.7 13.1 13.1 -6.0 70 71 Business..................................... 3.1 1.5 1.0 3.2 .4 3.4 2.5 1.2 -5.6 .2 5.9 11.1 5.0 7.8 71 72 State and local govts................. 3.5 3.7 5.8 6.2 7.8 7.0 7.3 3.2 7.7 6.5 13.7 6.7 3.7 9.4 72 73 Less net security credit........ 2.0 -.2 .3 -.2 2.2 -1.9 — .6 -.5 2.5 3.1 3.5 -2.6 2.8 2.8 73 Note.—Quarterly data are seasonally adjusted totals at annual rates, have not been revised before 1968 relative to tables in the May 1968 These tables reflect revisions in income and product accounts for 1965-67 Bulletin; financial revisions for 1965-67 will be published later, published in the July 1968 Survey of Current Business. Financial data Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ FLOW OF FUNDS A 69 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1966 1967 1968 Transaction category, 1963 1964 1965 1966 1967 or sector III IV I II III IV I II in I. Demand deposits and currency 1 Net incr. in banking system liability.. 5.8 7.4 7.6 2.6 14.7 -8.0 8.8 8.2 -.9 29.4 21.8 -4.9 -1.9 31.9 1 2 U.S. Govt, deposits........................ -.3 .2 -1.0 -.4 1.2 -6.1 1.2 -.6 -14.9 13.4 6.7 -5.8 -19.4 25.5 2 3 Other........................................... 6.1 7.3 8.6 3.0 13.5 -1.9 7.6 8.8 14.0 16.0 15.0 ,9 17.5 6.5 3 4 Domestic sectors......................... 6.0 6.8 8.3 3.3 12.7 -.1 8.2 12.0 11.5 15.5 11.5 2.2 14.9 8.3 4 5 Households........................... 4.3 6.4 7.1 1.9 12.4 .5 8.1 13.6 14.2 7.3 14.5 -4.9 15.9 15.7 5 6 Nonfinancial business............. -.8 -2.1 -1.7 .7 -1.5 1.5 -1.3 -4.1 -3.9 4.2 “2.5 8.0 .5 -6.3 6 7 State and local govts............... 2.4 1.2 -.2 .8 .3 -.7 -.1 3.3 1.0 -2.9 1.2 1.2 -2.0 7 8 Financial sectors..................... .2 .3 .7 .4 .7 .5 1.6 1.3 .9 .4 .4 -.1 1.9 2.4 8 9 Mail float................................. 1 .9 2.5 -.5 .8 -1.8 -.2 -2.0 .4 2.6 2.1 -1.9 -4.7 -1.6 9 10 Rest of the world....................... . 1 . 5 .3 -.3 .8 -1.8 -.6 “3.2 2.4 .5 3.5 -1.4 2.5 -1.8 10 II. Time and savings accounts 11 Net increase—Total............................ 29.5 30.4 33.0 20.3 40.8 16.7 15.5 52.3 45.4 42.0 23.5 32.5 18.9 47.6 11 12 At commercial banks—Total........ 14.3 14.5 20.0 13.3 23.8 11.6 6.2 35.1 23.7 23.7 12.7 20.2 4.9 34.4 12 13 Corporate business................... 3.9 3.2 3.9 -.7 4.1 -3.9 -4.6 10.0 -.9 3.7 3.7 .5 -3.1 9.9 13 14 State and local govts................... 1.6 1.7 2.4 1.3 2.4 1.9 1.5 5.7 3.4 .6 . 1 1.5 1.1 5.0 14 15 Foreign depositors...................... 1.0 1.4 . 6 .8 1.3 . 6 1.0 1.2 2.3 1.1 .8 -.7 -.4 1.0 15 16 Households................................. 7.9 8.2 13.3 11.9 15.8 13.0 8.5 18.0 17.9 18.7 8.5 18.5 7.2 18.3 16 17 At savings institutions.................... 15.2 15.9 13.0 7.1 17.0 5.1 9.3 17.2 21.7 18.3 10.7 12.4 14.0 13.3 17 18 Memo: Households total................... 23.0 23.9 26.5 19.2 32.4 18.3 17,8 35.0 38.6 36.7 19.2 31.1 21.1 31.9 18 IH. U.S. Govt, securities 19 Total net issues.................................... 5.0 7.1 3.6 6.3 12.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.3 .6 32.4 19 20 Short-term marketable................... 1.4 4.0 3.5 2.2 6.4 7.6 10. 1 9.9 -35.7 30.9 20.7 29.8 -17.3 3.8 20 21 Other............................................... 3.6 3.0 .2 4.1 6.2 -2.7 -7.2 -1.9 14.5 3.9 8.5 4.5 17.9 28.6 21 22 Net acquisitions, by sector................. 5.9 7.1 3.6 6.3 12.7 4.9 2.9 8.0 -21.3 34.7 29.2 34.3 .7 32.5 22 23 Federal Reserve System................. 2.8 3.5 3.7 3.5 4.8 5.7 3.8 5.5 2.8 3.6 6.9 5.5 5.5 7.5 23 24 Short-term................,........... 4.9 2. 1 3.7 5.4 1.9 6.7 12.4 1 -4.2 2.3 9.3 1.4 -4.9 -12.2 24 25 Commercial banks.......................... -2.6 .4 -2.3 -3.5 8.8 -5.7 -4.8 17.9 -.3 23.6 -5.9 7.9 -8.2 13.6 25 26 Short-term marketable................ -3.5 3.9 -1.7 -4.5 4.6 -2.8 -4.4 10.2 -7.2 18.3 “2.7 4.3 -2.4 8.8 26 27 Other direct................................. . 5 -4.1 -1.4 1.1 1.4 -.3 -.3 5.5 2.4 2.8 -5.2 2.5 -4.4 2.6 27 28 Nonguaranteed........................... .3 . 6 .8 2.8 -2.6 -.1 2.2 4.4 2.5 2.1 1.1 -1.3 2.3 28 29 Nonbank finance............................. —. 5 2.0 -.8 .9 3.4 .8 .2 -8.5 9.6 -1.4 9.8 -2.0 6.8 29 30 Short-term marketable................ -1.3 1.2 -.4 1.5 1.0 3.8 1.4 4.6 -10.7 10.6 -.4 10.3 -3.3 6.8 30 31 Other direct............................... .6 .5 -.7 -1.0 -1.5 -.5 -.9 “5.2 .9 -.7 “1.1 -2.6 .8 -.8 31 32 Nonguaranteed........................... .3 .3 .3 .4 .5 .1 .4 .8 1.4 -.3 . 1 2.1 .5 .8 32 33 Foreign............................................ . 6 . 5 1 -2.6 2.1 -4.4 -2.1 2.6 1.9 -1.4 5.2 -.3 -5.2 -.4 33 34 Short-term................................... —. 6 . 1 -.4 -.8 1.6 -2.4 .7 3.1 .7 “2.1 4.8 -1.4 -7.3 -2.5 34 35 Pvt. domestic nonfinan. sector.... 4.7 .8 3.1 8.0 -3.0 6.0 5.2 -18.2 -17.2 —. 8 24.4 11.3 10.5 4.9 35 36 Short-term marketable............... 1.8 -3.2 2.4 .7 -2.7 2.3 -7.9 -14.4 1.8 9.7 15.1 .6 3.0 36 37 Other direct................................. 1.0 2.8 -1.2 2.2 — 1.6 1.8 5.8 -9.6 -3.0 - 1.8 8.1 -6.5 -.9 37 38 Nonguaranteed........................... .7 .4 1.3 4.6 .4 1.5 -1.4 -1.5 -.9 -1.5 5.6 2.5 9.6 2.1 38 39 Savings bonds—Households .... 1.2 .9 .6 . 6 .9 .3 .9 .8 1.1 .7 .9 .2 .3 .8 39 IV. Other securities 40 Total net issues, by sector.................. I3.li 14.6 16.2 18.7 29.6 17.2 12.5 28.1 28.1 31.4 30.8 25.5 21.2 25.8 40 41 State and local govts....................... 6.7 5.9 7.3 6.0 10.1 4.6 6.1 10.3 11.5 7.5 11.2 10.0 6.8 12.8 41 42 Nonfinancial corporations............. 3.6 5.4 5.4 11.4 17.4 11.3 6.6 14.3 15.8 21.4 18.1 12.5 13.1 11.8 42 4 4 3 4 C Fi o n m an m c e e r c ci o a m l b p a a n ni k e s s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 4 3 2. . 1 6 1 . .9 8 . . 8 1 . . 2 6 1.2 -.4 1. . 7 8 -. . 3 1 i.o .i 1.5 .7 .2 4 4 4 3 45 Rest of the world........................... 1. 1 . 7 .8 . 5 1.3 .2 1.0 1.0 1.6 1.4 1.5 .5 1.0 45 46 Net purchases...................................... 13.1 14.6 16.2 18.7 29.6 17.2 12.5 28.1 28.1 31.4 30.8 25.5 21.2 25.8 46 47 Households...................................... -2.9 1.5 . I 2.9 -2.5 3.4 -3.5 -4.0 -6.6 -.9 1.3 11.1 1.4 -8.7 47 48 Nonfinancial corporations............. .9 • 2 .7 .8 .7 .7 .8 .7 .7 .8 .7 -.1 . 1 .2 48 49 State and local govts....................... 2.5 2.8 2.8 4.1 6.0 5.6 5.0 7.0 6.9 4.8 5.5 4.0 3.9 4.9 49 50 Commercial banks.......................... 5.2 3.7 5.0 2.4 9.8 -. 1 -.7 9.6 14.5 4.8 10.3 4.7 6.3 9.6 50 51 Insurance and pension funds......... 7.6 7.5 9.5 9.5 13.5 9.5 8.6 13.9 11.0 14.6 14.4 15.5 12.9 13.7 51 52 Finance n.e.c................................. -.2 — .8 -1.7 -2.2 -i.t -2.8 1.5 -1.9 -2.8 2.1 -1.9 -12.5 -6.7 2.3 52 53 Security brokers and dealers.... . 2 -.1 .1 1.0 2.6 -1.9 -2.9 2.6 2.5 -3.9 -5.5 7.2 53 54 Investment cos., net.................... —. 5 — .8 -1.5 -2.4 -1.2 -3.8 -1.2 -.1 —. 5 -4.4 -8.6 -1.1 -4.9 54 55 Portfolio purchases................. . 8 1.1 1.6 1.3 1.6 -1.1 2.5 3.0 1.3 3.1 “1.1 -1.4 3.8 1.1 55 5 5 6 7 Rest N o e f t t h is e s u w es o r o ld f . o .. w ... n .. . s .. h .. a .. r . e .. s .. . . . . . . . . . . . . . . . 1 . . 2 3 - 1 . . 9 1 - 3 . . 4 1 3 . . 9 7 2 1 . . 8 0 2. . 8 4 3 . . 4 6 3 . .1 5 1 1. . 3 3 2 3 . . 2 6 3.3 • 7. . 3 7 4 1 . . 9 9 2 6. . 1 2 5 5 7 6 V. Mortgages 58 Total net lending................................. 25.0 25.3 25.5 19.6 21.9 17.0 13.2 17.3 19.0 24.8 26.3 24.8 25.5 24.8 58 59 !- to 4-family................................... 15.7 15.4 16.1 10.0 12.5 7.4 6.9 9.4 9.7 15.0 16.0 15.7 14.5 14.8 59 60 In process..................................... . 5 -.3 -.9 1.0 -1.7 -1.2 .5 1.4 1.3 .9 • 3 .4 —. 3 60 61 Disbursed................................ 15.2 15.7 16.2 11.0 U.S 9.1 8.1 8.9 8.3 13.7 15.1 15.4 14.1 15.1 61 62 Other.............................................. 9.3 10.0 9.4 9.6 9.4 9.6 6.2 1.9 9.3 9.8 10.4 9.1 11.1 10.0 62 63 Net acquisitions................................... 25.0 25.3 25.5 19.6 21.9 17.0 13.2 17.3 19.0 24.8 26.3 24.8 25.5 24.8 63 64 Households...................................... —. 3 -.2 -.9 -.4 -.6 . 6 .5 -.5 -1.7 — .4 .2 1.0 — .5 1,0 64 65 U.S. Government........................... -1.0 .2 1.0 3.4 2.7 3.1 1.8 2.4 1.6 3.1 3.7 4.6 4.3 2.2 65 66 Commercial banks.......................... 4-9 4.5 5.6 4.6 4.6 4.3 3.6 2.0 3.5 6.0 6.7 5.8 6.2 6.2 66 67 Savings institutions......................... 16. 1 14.8 13.1 6.6 10.8 3.7 3.7 6.8 10.3 13.1 12.9 10.8 11.7 12.0 67 68 Insurance......................................... 4.0 5.1 5.5 5.1 3.1 5.3 3.6 5.2 2.9 2.0 2.3 2. 1 2.2 2.7 68 69 Mortgage companies...................... .8 .4 .5 -.6 .4 -.9 -1.1 .3 1.3 -.2 . 1 -.2 1.0 69 VI. Bank loans n.e.c. 70 Total net borrowing............................. 7.6 8.7 16.4 8.2 6.S S.2 2.0 1.7 7.7 6.7 9.8 2.7 13.2 15.0 70 71 Nonfinancial business..................... 5.0 5.1 12.2 9.9 7.4 9.6 4.7 5.8 11.0 2.0 10.8 1.6 12.7 5.7 71 72 Nonbank finance............................. 1.7 .5 2.4 -1.4 -2.4 -3.5 -2.7 -4.3 -3.3 2.1 -4.0 -.8 -1.1 4.9 72 73 Households...................................... .4 1.4 1.3 -.1 1.7 -.7 .5 .9 .7 1.7 3.5 2.0 1.7 4.6 73 74 Rest of the world............................ .5 1.7 .4 -.2 -.3 -.3 -.5 — .6 -.8 .8 -.5 -.2 -. 1 -. 1 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 □ APRIL 1969 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1967 1968 Item 1966 1967 1968? III IV P IP IIP IV? Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total 1...................... 43,142 45,756 50,199 11,513 11,496 11,850 12,607 13,282 12,463 Merchandise............................................................ 29,176 30,468 33,376 7,626 7,478 7,914 8,379 8,835 8,248 Military sales............................................................ 829 1,240 1,423 245 323 306 360 403 355 Transportation........................................................ 2,608 2,701 2,860 680 681 710 705 748 697 Travel..................................................................... 1,590 1 ,646 1,762 417 424 442 421 447 452 Investment income receipts, private....................... 5,659 6,234 6,911 1,671 1,729 1,543 1,727 1,849 1,793 Investment income receipts, Govt......................... 593 624 774 156 153 198 221 205 151 Other services........................................................ 2,687 2,843 3,094 718 708 737 794 795 767 Imports of goods and services—Total........................ -38,063 -40,989 -48,234 -10,154 -10,648 -11,552 -11,985 -12,428 -12,270 Merchandise............................................................ -25,541 -26,991 -33,273 -6,541 -7,159 -7,879 -8,335 -8,592 -8,467 Military expenditures.............................................. -3,735 -4,340 -4,561 -1,098 -1,104 -1,110 -1,123 -1,145 -1,183 Transportation........................................................ -2,923 -2,982 -3,162 -720 -750 -805 -747 -813 -798 Travel.................................................................... -2,657 -3,195 -3,083 -925 -725 -780 -761 -823 -719 Investment income payments................................. -2,074 -2,293 -2,805 -575 -598 -659 -703 -740 -702 Other services.......................................................... -1,132 -1,189 -1,350 -295 -321 -319 -316 -315 -401 Balance on goods and services1.................................. 5,080 4,768 1,965 1,359 848 298 622 854 193 Remittances and pensions............................................ -1,015 -1,276 -1,159 -358 -263 -266 -286 -315 -293 1. Balance on goods, services, remittances and pensions.............................................................. 4,065 3,492 806 1,001 585 32 336 539 -100 2. U.S. Govt, grants and capital flow, net.................. -3,444 -4,210 -3,977 -988 -1,008 -1,164 -1,072 -938 -803 Grants,* loans, and net change in foreign cur­ rency holdings, and short-term claims...... -4,676 -5,191 -5,360 -1,226 -1,266 -1,510 -1,384 -1,248 -1,219 Scheduled repayments on U.S. Govt, loans .. . 803 975 1,115 233 258 304 309 255 247 Nonscheduled repayments and selloffs............. 429 6 269 5 ♦ 42 3 55 169 3. U.S. private capital flow, net................................. -4,298 -5,504 -4,860 -1,788 -1,638 -707 -1,448 -1,798 -908 Direct investments.............................................. -3,623 -3,020 -2,743 -902 -815 -374 -1,035 -1,168 -167 Foreign securities................................................ -481 -1,266 -1,288 -476 -332 -385 -83 -323 -497 Other long-term claims: Reported by banks.......................................... 337 285 354 -72 16 140 49 165 * Reported by others......................................... -112 -289 -116 42 -93 45 -23 -15 -123 Short-term claims: Reported by banks.......................................... -84 -744 -100 -363 79 163 147 -365 -45 Reported by others......................................... -334 -470 -967 -17 -493 -296 -503 -92 -76 4. Foreign capital flow, net, excluding change in 2,532 3,185 8,384 766 352 1,410 2,485 1,833 2,656 liquid assets in U.S.......................................... 2,156 2,344 5,795 359 310 1,219 1 ,437 1,291 1,847 Long-term investments....................................... 296 388 666 174 40 -21 268 234 185 Short-term claims................................................ Nonliquid claims on U.S. Govt, associated With— Military contracts............................................ 346 64 -86 -67 -111 -29 -1 -136 81 U.S. Govt, grants and capital........................ -205 -85 2 -23 -12 -5 15 — 6 -3 Other specific transactions............................. -12 5 -2 -12 -10 -27 -6 41 -10 Other nonconvertible, nonmarketable, medium-term U.S. Govt, securities3................. -49 469 2,010 335 135 273 772 409 556 5. Errors and unrecorded transactions........................ -210 -532 -199 207 -34 -276 -483 419 145 Balances A. Balance on liquidity basis Seasonally adjusted (= 14-2+34-4+5).. -1,357 -3,571 158 -802 -1,742 -705 -182 55 990 Less: Net seasonal adjustments............... 410 159 -443 -255 488 210 Before seasonal adjustment....................... -1,357 -3,571 158 -1,212 -1,901 -262 73 -433 780 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted..................... -1,357 -3,571 158 -802 -1,742 -705 -182 55 990 Plus'; Seasonally adjusted change in liquid assets in the U.S. of: Commercial banks abroad............................. 2,697 1,262 3,382 1,119 767 412 2,442 829 -301 Other private residents of foreign countries.. 212 413 368 96 225 4 97 45 222 International and regional organizations other than IMF......................................... -525 -218 82 -55 -49 79 -80 21 62 Less: Change in certain nonliquid liabilities to foreign central banks and govts................ 761 1,291 2,373 111 283 361 768 527 717 Balance B, seasonally adjusted........................... 266 -3,405 1,617 247 -1,082 -571 1,509 423 256 Lest • Net seasonal adjustments........................ 272 314 -661 -54 350 365 Before seasonal adjustment................................. 266 -3,405 1,617 -25 -1,396 90 1,563 73 -109 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 71 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1967 1968 Item 1966 1967 1968*’ in IV Ir IP nu IV® Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis....................... 1,357 3,571 -158 1,212 1,901 262 -73 433 -780 Change In U.S. official reserve assets (Increase, —)..................................................... 568 52 -880 -375 ~18l 904 -337 -571 -1,076 Gold................................................................ 571 1,170 1,173 92 1 ,012 1,362 22 -74 — 137 Convertible currencies.................................. -540 -I .024 -1,183 -462 -1,145 -401 267 -474 -575 IMF gold tranche position.......................... 537 -94 -870 -5 -48 -57 -426 -23 -364 Change In liquid liabilities to all foreign accounts 789 3,519 722 1,587 2,082 -642 64 1,004 296 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities 4............................................... -945 455 -10 125 212 100 -49 -61 Marketable U.S. Govt, bonds and notes4. -245 48 -390 -6 -3 -359 -3 -26 -2 Deposits, short-term U.S, Govt, securities, etc................................................. -582 1,537 -2,707 162 1,108 — 1,112 -2,187 38 554 IMF (gold deposits)...................................... 177 22 -3 8 -11 Commercial banks abroad........................... 2,697 1 ,262 3,382 1,265 589 638 2,248 975 -479 Other private residents of foreign countries. 212 413 368 96 225 4 97 45 222 International and regional organizations other than IMF......................................... -525 -218 82 -55 -49 79 -80 21 62 B. Official reserve transactions.................................. -266 3,405 -1,617 25 1,396 -90 -1,563 -73 109 Change in U.S. official reserve assets (increase, —)...................................................... 568 52 -880 -375 -181 904 -137 -571 -1,076 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)....................................................... - 1 ,595 2,062 -3,110 281 1,317 -1,363 -2,201 -37 491 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations................... 793 839 524 -212 160 122 148 129 125 Of U.S. Govt.............................................. -32 452 1 ,849 331 100 247 627 406 569 1 Excludes transfers under military grants. Note.—Dept, of Commerce data. Minus sign indicates net payments 2 Excludes military grants. (debits); absence of sign indicates net receipts (credits). Details may not 3 Includes certificates sold abroad by Export-Import Bank. add to totals because of rounding. 4 With original maturities over 1 year. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1966 1967 1968 1969 1966 1967 1968 1969 1966 1967 1968 1969 Month: Jan................... 2,268 2,631 2,797 32,082 1,924 2,262 2,619 31,967 344 369 178 116 Feb..................... 2,384 2,612 2,797 32,313 2,029 2,235 2,610 3 2,674 355 377 187 -362 Mar............... 2,561 2,558 2,462 2,086 2,205 2,624 475 353 -162 Apr..................... 2,361 2,654 2,905 2,120 2,234 2,640 241 420 266 May. .................. 2,430 2,562 2,736 2,088 2,145 2,777 342 417 -41 June................... 2,505 2,597 2,865 2,147 2,237 2,853 358 360 12 July.................... 2,461 2,588 2,841 2,187 2,212 2,679 274 376 162 Aug..................... 2,458 2,550 2,933 2,127 2,133 2,838 331 417 95 Sept ............. 2,556 2,641 3 3,267 2,301 2,214 3 2,977 255 427 288 Oct ........... 2,590 2,396 3 2,614 2,256 2,201 3 2,670 334 195 -57 Nov.,................. 2,510 2,693 3,000 2,192 2,388 2,830 318 305 171 Dec ................... 2,414 2,609 2,886 2,230 2,530 2,957 184 79 -70 Quarter; I.......................... 7,214 7,810 8,055 6,040 6,702 7,854 1,174 1,108 201 II. ..................... 7,296 7.822 8,506 6,355 6,616 8,268 941 1 ,206 238 Ill....................... 7,476 7,832 9,041 6,613 6,558 8,494 863 1,274 547 IV....................... 7,514 7,698 8,500 6,678 7,119 8,458 836 579 42 Year4 ................... 29,489 31,148 34,090 25,686 26,996 33,075 3,803 4,152 1,015 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 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus Note.—Bureau of the Census data. Details may not add to totals because entries into bonded warehouses. of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 72 U.S. GOLD TRANSACTIONS □ APRIL 1969 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 i960 1961 1962 1963 1964 1965 1966 1967 1968 IV I II III IV Western Europe: Austria.............. -1 -143 -82 -55 -100 -25 Belgium............................... -141 -144 -63 -40 -83 -58 -25 -33 France................................. -173 -456 -518 -405 -884 -6oi 600 220 240 140 Germany, Fed. Rep. of. .. -34 -23 -225 Ireland................................ -1 -2 -2 -2 -52 -1 -12 -32 -11 3 Italy..................................... loo 200 -80 -60 -85 -209 -85 -184 -25 Netherlands....................... -249 -25 -60 -35 -19 -49 30 Spain................................... -114 -156 -146 -130 -32 -180 Switzerland......................... -324 -125 102 -81 -50 -2 -30 -50 -25 -25 United Kingdom................ -550 -306 -387 329 618 150 80 -879 -835 -771 -900 50 15 Bank for Inti. Settlements. -36 -23 Other................................... -96 -53 -12 1 -6 -35 — 49 16 -47 -6 -1 -22 -16 -8 Total........................... -1,718 -754-1,105 -399 -88 -1,299 -659 -980 -669 -863 -1,195 163 213 150 Canada................................... 190 200 150 50 100 50 Latin American republics: Argentina....................... -50 -90 85 -30 -39 -1 -25 -5 -15 -5 Brazil.................................. -2 -2 57 72 54 25 -3 -1 * • * Colombia........................... -6 38 to 29 7 Venezuela........................... -25 Other................................... -42 -17 -5 -ii -9 -13 -6 ii -40 -7 -28 -7 -3 -3 Total........................... -100 -109 175 32 56 17 -41 9 -65 -7 -28 -12 -18 -8 Asia: Iraq.......................... ■ • • -30 -10 -4 -21 -42 -21 -14 -28 Japan.................................. -15 -56 Lebanon............................. -21 -32 -ii -11 -1 -95 -74 -ii Malaysia............................. -1 -34 -10 -24 Saudi Arabia..................... -11 -48 -13 -50 -25 -25 Singapore........................... -81 -30 -23 -28 Other................................... -57 -32 -47 12 14 -14 -15 -22 -65 -1 -15 -26 -18 -6 Total.......................... -113 -101 -93 12 3 -24 -86 -44 -366 -22 -143 -146 -71 -6 All other................................. -38 -6 -1 -36 -7 -16 -22 1-166 1-68 1-162 -1 -16 1-51 -1 Total foreign countries...... -1,969 -970 -833 -392 -36 -1,322 -608 -1,031 — 1,118 -953 -1,317 -10 73 136 Inti. Monetary Fund........... 2 300 150 3-225 *177 *»22 4-3 48 4-11 Grand total................ -1,669 -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 -953 -1,309 -22 73 136 1 Includes sales to Algeria of $150 million in 1967 and $50 million in 3 Payment to the IMF of $259 million increase in U.S. gold subscription, 1968. less gold deposits by the IMF. ‘ 2 IMF sold to the United States a total of $800 million of gold ($200 4 Represents gold deposited by the IMF; see note 1(b) to Table 4. In miUion in 1956, and $300 million in 1959 and in 1960) with the right of June 1968 the IMF withdrew $17 million of these deposits. repurchase; proceeds from these sales invested by IMF in U.S. Govt, securities. 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 are more accurately Branches,” has been included in this section. Weekly viewed as contingent liabilities, since they represent data on these liabilities for the period Jan. 1964-Mar. essentially the amount of dollars available for drawings 1968 were included in the May 1968 issue on page A-104. from the IMF by other member countries. Changes in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 1 Con­ Reserve End of year r T a e s s o s e t e r a v ts l e Total 2 Treasury c v u fo e rr r r e e ti n i b g c l n i e e s p I o M s i i n t F i o 3 n End of month r a T e s s o s e t e r a v t l s e Total 2 Treasury v c fo c u e i r r r e e t r s i i e b g n 3 l n e ­ p I o M s i i n F ti o 3 n 1956........................ 23,666 22,058 21,949 1 ,608 1968—Mar......1..3..,.9..26 10,703 10,484 2,746 477 1957 ........................ 24,832 22,857 22,781 ............... 1,975 Apr............. 13,840 10,547 10,484 2,804 489 1958........................ 22,540 20,582 20,534 1,958 May............ 14,348 10,468 10,384 3,386 494 1959........................ 21,504 19,507 19,456 1,997 June.......1..4..,.063 10,681 10,367 2,479 903 I960........................ 19,359 17,804 17,767 1,555 July.......1..4..,.366 10,676 10,367 2,773 917 Aug............. 14,427 10,681 10,367 2,817 929 1961........................ 18,753 16,947 16,889 116 1,690 Sept.......1..4..,.6.34 10,755 10,367 2,953 926 1962........................ 17,220 16,057 15,978 99 1,064 Oct......1..4..,.4..2.7 10,788 10,367 2,703 936 1963........................ 16,843 15,596 15,513 212 1,035 Nov......1..5..,.6..60 10,897 10,367 3,655 1,108 1964........................ 16,672 15,471 15,388 432 769 Dec......1..5..,.7..10 10,892 10,367 3,528 1,290 1965........................ 15,450 4 13,806 ‘•13,733 781 4 863 1969—Jan.......1..5..,.4..54 10,828 10,367 3,338 1 ,288 1966........................ 14,882 13,235 13,159 1,321 326 Feb.......1..5..,.4.99 10,801 10,367 3,399 1,299 1967........................ 14,830 12.065 11,982 2,345 420 Mar.......1..5..,.758 10,836 10,367 3,601 1,321 1968........................ 15,710 10,892 10,367 3,528 1,290 1 Includes (a) gold sold to the United States by the International Mon­ 4 Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6, U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 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. U.S, transactions with IMF Transactions by reserve other countries Period with IMF p in o s I i M tio F n P s t u a d io b y o n m s o ll c s f a e r r i n i s n p ts ­ by s g N I a o M l e e ld t s F 1 T t c f i r c o u o a i r r n e n e r s s s i e g a n i 2 n c n ­ ­ I i M d n o c F l i o n la m n rs e e t D d ra o w o ll f a i n rs gs R d m o e e i l p n l n a a t r y s s ­ c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 3 1946__1957............................. 2,063 4 594 -45 -2,664 827 775 775 28 1,975 1958—1963............................. 1’031 150 60 -1’666 2,740 2,315 3,090 75 1,035 1964......................................... 525 18 -282 5 266 3,356 81 769 1965......................................... 435 12 -282 165 3,521 85 3 863 1966......................................... 776 680 15 -159 1 1,313 4,834 94 326 1967......................................... 20 -114 -94 4i 740 92 420 1968......................................... — 84 20 -806 -870 3*870 75 1 ,290 1968—Mar.............................. 200 I -23 178 4,683 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 4,243 82 917 Aug,............... -1 -11 -12 4,231 82 929 Sept.............................. 3 3 4'234 82 926 2 -12 -10 4,224 82 936 Nov...................... -125 -1 -46 -172 41052 79 1,108 Dec............................. -159 4 -27 -182 3,870 75 1,290 (969—Jan............................... 2 2 3,872 75 1 ,288 Feb............................... 2 -13 -11 3,861 75 1,299 Mar............................ 2 -24 -22 3,839 74 1,321 I Represents net IMF sales of gold to acquire U.S. dollars for use in cally if needed. Under appropriate conditions, the United States could IMF operations. Does not include transactions in gold relating to gold draw additional amounts equal to its quota. deposit or gold investment (see Table 6). 4 Represents a $600 million IMF gold sale to United States (1957), 2 Positive figures represent purchases from the IMF of currencies of less $6 million gold purchase by IMF from another member with U.S. other members for equivalent amounts of dollars; negative figures repre­ dollars (1948). . . sent repurchase of dollars, including dollars derived from charges on 5 Includes $259 million gold subscription to the IMF in June 1965 for drawings and from other net dollar income of the IMF. The United a U.S. quota increase, which became effective on Feb. 23, 1966. In figures States has a commitment to repay drawings within 3 to 5 years, but only published by the IMF from June 1965 through Jan. 1966, this gold sub­ to the extent that the holdings of dollars of the IMF exceed 75 per cent of scription was included in the U.S. gold stock and excluded from the the U.S. quota. Drawings of dollars by other countries reduce the U.S. reserve position. commitment to 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 to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1969 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Inti. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organization 5 Official institutions * Banks and other foreigners Non­ End Short­ market­ Short­ Short­ of term Market­ able term Market­ term Market­ period liabil­ able convert­ liabil­ able liabil­ able Gold Gold ities re­ U.S. ible ities re­ U.S. ities re­ U.S. Total de­ invest­ Total ported Govt, U.S. Total ported Govt, Total ported Govt, posit 1 ment 2 by bonds Treas­ by bonds by bonds banks and ury banks and banks and in U.S. notes 4 bonds in U.S. notes 4 in U.S.6 notes 4 and notes 1957........... 715,825 200 200 n.a. 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958.......... 716,845 200 200 n.a. 8,665 n.a. n.a. 5,950 n.a. n.a. 552 n.a. 1959........... 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1 ,190 530 660 19608......... 120,994 800 800 11,078 10,212 866 7,591 7,048 543 1 ,525 750 775 121,027 800 800 11,088 10,212 876 7,598 7,048 550 1 ,541 750 791 19618......... 122,853 800 800 11,830 10,940 890 8,275 7,759 516 1 ,948 703 I ,245 122,936 800 800 11 ,830 10,940 890 8,357 7,841 516 1 ,949 704 1 ,245 19628......... J24.068 800 800 12,748 11 ,997 751 8,359 7,911 448 2,161 1 ,250 911 124,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1 ,284 911 1963 8......... /26.361 800 800 14,387 12,467 1 ,217 703 9,214 8,863 351 1 ,960 808 1 ,152 126,322 800 800 14,353 12,467 1 ,183 703 9,204 8,863 341 1 ,965 808 1 ,157 19648......... 1 (2 2 8 9 , , 9 0 5 0 1 2 8 80 0 0 0 8 80 0 0 0 1 1 5 5 , , 4 42 2 8 4 1 13 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 1 11 1 , , 0 0 0 5 1 6 1 10 0 , , 6 6 8 2 0 5 3 37 7 6 6 1 1 , , 7 7 2 2 2 2 8 81 1 8 8 9 9 0 0 4 4 1965........... 29,115 834 34 800 15,372 13,066 1,105 1 ,201 11,478 11,006 472 1 ,431 679 752 19668......... /29,904 1 ,011 21 1 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 129,779 1 ,011 21 1 800 13,655 12,539 860 256 14,208 13,680 528 905 580 325 19678......... \ ( 3 33 3 , , 2 1 7 3 1 3 1 1 , , 0 0 3 3 3 3 2 2 3 3 3 3 8 80 0 0 0 1 1 5 5 , , 6 6 5 4 3 6 1 14 4 , , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 1 1 5 5, , 7 8 6 9 8 4 1 15 5 , , 2 3 1 3 0 6 5 5 5 5 8 8 6 6 9 8 1 6 4 4 8 8 7 2 2 2 0 0 4 4 1968-Jan... 33,113 1,033 233 800 15,206 13,778 717 711 16,182 15,612 570 692 488 204 Feb... 33,316 1 ,033 233 800 15,326 13,963 652 71 1 16,321 15,728 593 636 431 205 Mar... 32,491 1 ,041 241 800 14,275 12,915 549 81 1 16,410 15,806 604 765 560 205 Apr... 32,992 1,045 245 800 14,368 13,008 549 811 16,746 16,134 612 833 628 205 May.. 33,144 1,047 247 800 13,599 12,242 546 811 17,866 17,256 610 632 465 167 June.. 32,555 1 ,030 230 800 12,085 10,728 546 811 18,755 18,142 613 685 519 166 July. . 33,123 I ,030 230 800 12,592 11,234 546 812 18,726 18,099 627 775 615 160 Aug... 33,583 1 ,030 230 800 12,422 11,151 509 762 19,359 18,723 636 772 612 160 Sept... 33,559 I ,030 230 800 12,048 10,766 520 762 19,775 19,149 626 706 630 76 Oct... 33,974 1 ,030 230 800 12,122 10,840 520 762 20,029 19,409 620 793 725 68 Nov... 35,623 1,030 230 800 13,676 12,396 518 762 20,111 19,487 624 806 738 68 Dec... 33,846 1 ,030 230 800 12,539 11,320 518 701 19,529 18,920 609 748 706 42 1969-Jan.1'. 33,897 1 ,031 231 800 10,789 9,570 518 701 21,387 20,749 638 690 647 43 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 dfterences. 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 $34 million at the end of 1968, 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

APRIL 1969 □ 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) Total Latin End of period foreign E W u e ro st p e e r n 1 Canada American Asia Africa cou O n t t h ri e e r s 2 countries republics 1966........................................................................................ 13,655 7,488 1,189 1,134 3,339 277 228 1967.. ................................................................................... 15'646 9'872 996 1,131 3,145 249 253 1968—.jan............................................................................. 15,206 9,373 1,091 1 ,210 3,056 229 247 Feb............................................................................. 15,326 9'179 1 ,403 1,170 3,086 272 216 Mar.. ..................................................................... 14,275 8,881 '851 1,174 2,927 230 212 Apr........................................................................... 14,368 8'624 1,040 1 ,371 2,857 247 229 May............................................................................. 13'599 7,908 1,035 1 *380 2 790 251 235 June............................................................................ 12,085 7,034 '671 1 ,197 2,’734 259 190 Juiy. ........................................................................... 12,592 7'043 709 1 ,528 2,843 284 185 Aug. ......................................................................... 12,422 6'838 780 1 332 2,926 242 204 Sept.................................................................. 12,048 6'951 438 1,196 2^959 293 211 Oct....................................................................... 12,122 6,843 416 1 ,262 3,116 271 214 Nov........................................................................... 13'676 8'086 574 1 357 3'160 271 228 Dec ......................................................................... 12,539 6,998 533 1 ,354 3,169 259 226 1969—Jan.p........................................................................... 10,789 5,434 565 1 ,354 2,977 261 198 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short-term liabilities to the official institutions 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible non marketable U.S. Govt, securities with an original maturity of more than 1 year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional Foreign E pe n r d io o d f G to r t a a n l d 1 Total 1 IntU gi R on e a ­ l2 Total c O ia ff l i ­ 3 Other Europe Canada Am La e t r i i n c a Asia Africa O c t o r t i u h e n e s r ­ 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......................... J ( 3 3 0 0 , , 5 6 1 5 9 7 1 1 , , 2 2 8 82 7 1 1 , , 1 1 8 8 1 1 1 1 0 0 1 6 2 2 9 9 , , 2 3 3 7 7 0 1 1 4 4^ ,0 0 2 3 7 4 1 1 5 5 , , 2 3 1 3 0 6 1 1 6 6 , , 1 3 9 78 9 2 2 , ^ 7 0 0 6 9 4 4 , , 1 1 3 4 4 0 5 5, , 5 4 4 9 1 2 3 3 4 49 9 3 30 0 5 5 1968—Feb................ 30,922 1,231 1,117 114 29,691 13,963 15,728 16,129 3,201 4,123 5,522 434 281 Mar............... 30,081 1 ;360 1,268 92 28,721 12,915 15,806 15,861 2,791 4,072 5,375 339 282 Apr................ 30,570 1.428 1 ,335 93 29'142 13^008 16,134 15,846 2',943 4,297 5,400 366 290 May............. 30,763 1,265 1,176 89 29,498 12,242 17,256 16,149 3,055 4; 287 5,332 371 304 June.............. 30'189 1 '319 1,221 98 28'870 10,728 18,142 15,857 2,842 4,172 5,367 370 262 July.............. 30,748 1,415 I ,'304 1H 29,333 11,234 18,099 15,802 2,894 4,484 5,510 397 247 Aug............. 31,286 1,412 1 ,298 114 29,874 11,151 18,723 16,075 3,140 4,401 5,638 356 264 Sept............. 31,345 1 '430 1 '318 112 29'915 10'766 19,149 16'554 2,747 4,263 5'665 405 280 Oct................. 31,774 1 ;525 1 ,404 121 30^249 10^840 19^409 16,375 3’015 4; 405 5,801 369 283 Nov......... 33,421 1 ,538 1 '403 135 31'883 12,396 19,487 17,693 3,081 4',525 5,894 400 291 Dec............... 31;746 1 ,506 1,395 111 30,240 11,320 18,920 16,231 2,796 4,605 5,957 361 289 1969-—Jan ^............. 31,766 1,447 1,328 119 30,319 9,570 20,749 16,526 2,925 4,543 5,698 360 267 Feb.’’. ...... 32,518 1 '417 1,302 115 31,101 9^646 21,455 16,707 3,110 4,734 5,795 400 355 8a. Europe E pe n r d i o o d f Total Austria B b L e o u l u g x r i e g u m m 5 ­ - m D a e r n k ­ l F a i n n d ­ France m G F a e e n d r y . ­ , Greece Italy N l e an th d e s r­ Norway Po g r a t l u­ Spain Sweden Rep, of 1966............... 13,933 196 420 305 58 1.070 2,538 129 1,410 364 283 358 162 656 1967 4....... / { 1 1 6 6 , , 1 3 9 7 9 8 2 2 3 3 1 1 6 6 0 3 1 2 2 24 4 3 3 9 9 9 9 1 1 , , 3 3 2 3 6 0 2 2 , , 2 2 1 18 7 1 1 7 7 0 0 1 1 , , 9 9 4 4 8 8 5 5 8 8 9 9 4 4 4 4 9 9 4 4 3 37 7 1 1 5 5 0 0 4 4 9 9 2 2 1968—Feb.... 16,129 177 580 220 126 1,245 2,143 159 1,786 488 390 426 121 541 Mar.... 15,861 154 539 199 139 1,162 2,351 154 1,573 361 385 388 129 529 Apr.... 15,846 181 513 177 141 1,202 2,134 156 1,534 330 399 394 134 565 May .. 16,149 165 530 178 140 959 2,009 154 1,364 272 404 381 153 582 June... 15,857 164 420 185 150 1,262 1,705 152 988 245 411 338 144 510 July... 15,802 174 373 144 161 881 1,834 173 998 251 427 325 151 514 Aug.... 16,075 150 382 149 156 977 1,779 184 1,109 315 485 323 187 543 Sept.... 16,554 131 360 152 155 1,144 1,931 197 1,051 273 438 321 183 536 Oct.. .. 16,375 153 424 130 158 1,170 1 ,865 183 1,077 277 395 319 165 534 Nov.... 17,693 134 326 123 166 1 ,229 3,564 187 840 261 381 342 167 499 Dec.... 16,231 162 313 146 176 1,383 2,640 183 729 278 448 345 158 453 1969—Jan.”. . 16,526 136 337 141 164 1,468 1,329 195 629 216 317 330 136 453 Feb.”.. 16,707 144 331 101 169 1 ,468 1 ,368 178 600 271 322 319 148 391 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. □ APRIL 1969 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 t g ed ­ 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 19674............... 732 33 4,851 23 736 8 44 4,’140 480 237 252 169 9 723 (1,732 33 4,667 23 706 8 44 4,134 479 237 252 166 9 720 1968—Feb....... 1.511 39 5,431 56 653 6 29 4,123 414 291 239 162 8 747 Mar.. .. 1,657 29 5,583 52 439 4 35 4,072 430 301 263 154 8 721 Apr. , .. 1,544 28 5,881 60 438 4 31 4,297 444 351 260 160 8 745 May... . 1 ,553 25 6,841 59 350 4 26 4,287 473 310 241 187 8 813 June.... 1,741 25 7,027 51 297 5 40 4,172 429 258 245 198 8 789 July.... 1,863 22 7,053 20 401 6 32 4,484 642 248 254 179 8 817 Aug....... 1,754 18 7,092 29 405 6 34 4,401 502 301 304 186 8 776 Sept...... 1 ,964 30 7,104 26 511 7 41 4,263 445 250 302 210 8 769 Oct........ 1,741 31 7,244 28 439 4 38 4,405 463 285 287 219 8 849 Nov...... 2,008 34 6,994 40 358 6 34 4,525 502 312 289 224 8 892 Dec....... 2,155 29 6,192 33 357 5 48 4,605 479 257 323 249 8 974 1969—Jan.”. .. 2,038 33 8,120 25 411 12 34 4,543 495 247 301 222 8 942 Feb.”. .. 1 ,822 32 8,597 20 385 6 35 4,734 486 256 330 241 7 947 8b. Latin America—Continued 8c. Asia E t n ct d i o o u 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 t a e h t r i e n i r c a Total C M la h a n i i n d n a ­ K H 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 ........./ 1 1 1 7 7 0 3 2 2 7 7 4 4 1 1 4 4 7 7 7 7 9 9 3 3 5 5 2 2 3 3 2 2 3 3 3 3 1 11 0 1 9 1 1 8 8 5 5, , 5 4 4 9 1 2 3 36 6 2 2 1 1 5 7 3 3 5 5 4 4 3 3 4 4 1 1 2 2 5 5 1968--Feb....... 156 267 152 770 559 252 86 17 5,522 36 226 351 42 134 Mar. . .. 140 259 143 730 579 242 84 19 5,375 37 228 319 39 110 Apr. . .. 139 276 140 814 603 242 88 25 5,400 36 221 342 46 119 May.... 145 272 144 780 579 226 83 25 5,332 36 238 368 41 128 June.... 153 278 138 742 592 220 97 25 5,367 36 243 384 74 127 July. .. . 154 268 133 797 623 245 88 27 5,510 36 260 376 51 134 Aug...... 147 278 140 792 621 234 83 28 5,638 36 255 394 51 136 Sept...... 156 275 142 723 608 254 92 29 5,665 36 261 393 55 144 Oct....... 165 265 145 777 565 258 88 30 5,801 37 255 370 52 143 Nov. ... 163 272 153 775 574 239 93 31 5,894 36 260 379 49 163 Dec....... 154 276 149 792 611 215 88 30 5,957 37 270 281 50 219 1969—Jan.J’. .. 156 277 149 799 582 230 105 31 5,698 38 270 215 62 190 Feb.’’. .. 151 279 155 808 588 365 102 30 5,795 37 256 236 66 154 8c. Asia—Continuer 8d. Africa 8e. Other countries E pe n r d io o d f Japan Korea P p h in il e ip s ­ T w a a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a o ­ ) r M oc o co ­ A So fr u i t c h a ( U E . g A y . p R t . ) A O f t r h i e c r a Total t A ra u l s ia ­ o A th l e l r 1966................... 2,671 162 285 228 598 779 385 15 31 71 39 229 266 243 22 19674.................. / 1 2 2 ; , 5 6 6 1 3 2 1 1 7 7 6 6 2 2 8 8 9 9 2 2 2 2 6 2 6 6 1 16 6 8 8 5 5 8 9 3 3 4 4 9 9 3 3 3 3 1 18 8 6 6 1 1 1 16 6 2 2 2 2 1 1 3 3 0 0 5 5 2 2 7 7 8 8 2 2 7 7 1968—Feb.......... 2,559 181 291 211 647 843 434 30 22 53 15 315 281 249 33 Mar......... 2,551 174 289 209 655 764 339 28 22 57 17 215 282 253 29 Apr......... 2,555 182 285 196 678 740 366 27 14 54 19 252 290 265 25 May. .... 2,482 174 265 197 676 729 371 25 10 60 20 257 304 279 25 June 2,537 168 269 196 678 655 370 21 21 47 19 261 262 233 29 July......... 2,661 173 269 206 673 671 397 22 20 51 19 284 247 221 25 Aug......... 2^827 174 263 201 673 627 356 18 19 52 21 246 264 240 24 Sept......... 2,858 162 258 188 672 637 405 16 18 51 20 300 280 255 25 Oct.......... 3’094 166 261 180 648 594 369 13 14 49 20 274 283 256 27 Nov....... 3; 207 167 247 165 648 571 400 13 14 60 20 292 291 264 27 Dec.......... 3,319 172 271 155 556 627 361 12 13 58 18 260 289 261 28 1969—Jan.’’....... 3,247 155 237 149 559 577 360 12 15 50 19 265 267 238 28 Feb.”.... 3,382 150 217 154 577 565 400 13 14 58 18 297 355 326 29 1 Data exclude the “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line are ^^ . . . comparable with those shown for the following date. 2 Latin American, Asian, African, and European regional organiza­ 5 Through the first line for Dec. 1967 Luxembourg was included in tions, except Bank for International Settlements and European Fund Other Western Europe, which are included in “Europe.” 6 Includes Bank for International Settlements 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, * 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

APRIL 1969 □ 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) 1967 1968' 1967 1968 Area or country Area or country Apr. Dec, Apr. Dec. Apr. Dec. Apr. Dec, Other Western Europe: Other Asia—Cont.: Cyprus.......................................... 1.5 1.7 20.9 n.a. Jordan......................................... 45.2 39.8 6.6 3.0 Iceland............ .................... 5.7 4.3 3.3 5.6 Kuwait........................................ 28.6 36.6 34.0 66.7 Trel^pd Rep. of. ... 7.4 9 4 14,7 23.8 Laos............................................ 6.5 3,6 4.0 3.1 Luxembourg........................ .. 21.7 31.3 (8) (8) Lebanon..................................... 112.2 113.3 97.2 78.3 Malaysia......................... 34.9 63.9 52.1 51.8 Other Latin American republics: Pakistan...................................... 45.3 54.8 54.1 59.7 Bolivia...................................... 57.9 59.9 61.0 66.0 Ryukyu Islands (inch Okinawa). 31.2 14.5 26.4 17.0 Costa Rica.................................. 41.9 42.6 55,0 51.1 Saudi Arabia.............................. 96.4 61.2 70.3 29.0 Dominican Republic .............. 53.9 55.1 60.2 68.9 Singapore................................... 60.3 159.5 156.9 Pena dor ....................................... 92.4 85.6 64 1 66.4 Syria............................ 4.7 6.3 6.5 2.1 RI Salvador................................. 96'4 72 8 83.6 82.1 Vietnam...................................... 146.3 148.2 123,0 50.5 Guatemala.................................... 83.9 73.0 96.4 85.8 Haiti......................... 16.8 15.8 17.4 16.9 Other Africa: Hopd liras................................... 28.6 29.7 31.4 33,2 Algeria......................................... 13.4 6.9 7.9 8.1 lama ica......................................... 19.3 22.4 44.4 41 .7 Ethiopia, (inch Eritrea)............ 40.2 23.8 22.5 13.2 Niearag^-^..................................... 62,7 45.6 57.9 67.0 Ghana.................................. 5.3 4.3 13.0 3.3 Paraguay*................... • ■ • • 16.6 12.7 13.6 15.7 Kenya......................................... 2.1 16.4 19.8 28.6 Trinidad Xt. Tobago..................... 5.4 6.1 9.2 10.4 Liberia......................................... 21.6 24.9 26.4 25.2 Libya.............................. 76,0 17.9 45.0 n.a. Other Latin America: Nigeria...................................... 36.5 37.9 24.0 n.a. Rritish West Indies ............... 14.2 13.8 20.6 25.2 Southern Rhodesia............ 3.3 2.4 4.2 1 4 Sudan.......................................... 6.7 2.3 2.1 5 3 Other Asia: Tanzania..................................... 9. 1 20.3 26,9 n.a. A fghan'stan................................... 7.8 5.5 5,6 6.2 Tunisia....................................... 1.0 10.3 2,0 7 1 Riirm a -................................. 20.3 10.8 16,6 4.7 Uganda,..................................... .7 1.4 10.0 n.a. Cambodia.......... ................... 1.3 1.9 2.7 n.a. Zambia........................................ 25.9 24.8 21 3 n.a. Ceylon........................................... 2.7 5.0 4.5 4.2 Iran............................................... 44.0 49.6 38.4 41.3 All other: Iraq..................,,..,................ 28.0 34.6 10.0 n.a. New Zealand.............................. 16.7 17.5 15.4 J6.8 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-negotiablc, 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 I year from For data on long-term liabilities, see Table 14. 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks, official and international institutions1 To all other foreigners Payable in End of period Total foreign Deposits U.S. Deposits U.S. currencies Total T bi r l e ls a s a u n r d y Other 3 Total T bi r l e ls a s a u n r d y Other 3 Demand Time 2 certificates Demand Time 2 certificates 1966............................... 27,599 23,266 8,371 4,050 7,464 3,381 3,744 1,513 1,819 83 329 589 19674............................. f 30,657 26’300 10,054 3’728 9,093 3,425 4,128 1,’693 2,052 81 302 229 I 30,519 26,165 9,884 3,721 9,093 3,467 4,125 1,693 2,054 81 297 229 1968—Feb..................... 30,922 26,525 10,203 3,568 8,943 3,812 4,089 1 ,581 2,088 104 315 308 Mar.................... 30^081 25,675 10387 3’429 8'098 3,661 4383 1 ,585 2353 101 344 323 Apr.,................. 30’570 26’194 10’750 3 488 8,047 3,909 4,077 1 ',607 2,057 86 327 300 May................... 30,’763 26,391 11963 3,379 7,’082 3 ,’967 4,052 1 '582 2345 88 337 320 June................... 30'189 25,693 12313 3’315 6',067 3,999 4J71 1 ,694 2 348 88 342 323 July.............. 30'748 26,'124 12366 3,398 6,031 4,230 4,111 1 ,613 2,067 79 352 512 Aug................... 31 ',286 26,651 12,’941 3,’455 6,171 4,084 4,126 1 ,581 2369 81 395 509 Sept.................... 31 >5 26^581 12324 3 332 6,111 4J14 4,203 1 341 2,116 78 368 561 Oct..................... 31'774 27,025 13'328 3’357 6'328 4,012 4,196 1,596 2,140 77 383 553 Nov.................... 33’421 28'505 I33IO 3,281 7,761 4.054 4,342 1 374 2,178 83 408 573 Dec................. 31 ',746 26’665 12 622 3 301 6,710 4,032 4,443 1 '796 2,199 86 362 638 1969—Jan?’.......... 31,766 26,833 14,026 3 298 5,315 4,193 4,424 1,744 2,203 106 370 509 Feb.P.................. 32^18 27^565 14,400 3,399 5'412 4,353 4396 1370 2,186 73 367 557 1 Data exclude “holdings of dollars” of the International Monetary « Data on the two lines shown for this date differ because of changes in Fund. reporting coverage. Figures on the first Une are comparable in coverage 2 Excludes negotiable time certificates of deposit, which are included with those shown for the preceding date; figures on the second line are in “Other.” comparable with those shown for the following date. 3 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1969 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1967 1968 1969 Area and country Dec, Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.p Feb.p Europe: Austria............................ 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Denmark............................ 12 12 12 12 11 11 11 11 11 11 11 11 11 11 France................................. 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Germany............................. 2 2 2 2 2 2 2 1 1 1 1 I 1 Italy..................................... 9 6 6 6 6 6 6 6 6 6 6 6 6 6 Netherlands....................... 5 4 4 4 4 4 4 4 4 4 4 4 4 4 Norway............................... 51 49 49 49 46 46 46 27 27 27 27 27 27 27 Spain................................. 2 2 2 1 1 1 1 1 1 1 1 1 1 1 Sweden............................... 24 24 24 26 26 26 26 6 6 6 6 6 6 6 Switzerland......................... 91 92 91 91 92 91 91 90 90 90 87 87 93 93 United Kingdom............... 380 4t5 423 431 427 432 445 455 449 444 446 432 453 459 Other Western Europe... . 51 51 38 38 39 38 38 38 38 38 38 38 38 38 Eastern Europe,................ 7 7 7 7 7 7 7 6 6 6 6 6 6 6 Total........................... 643 674 669 677 671 674 686 655 649 644 643 630 657 662 Canada................................... 716 463 378 377 377 377 376 374 371 370 375 373 375 376 Latin America: Latin American republics.. 6 6 5 5 5 5 5 5 5 5 5 5 5 5 Other Latin America......... 18 20 20 19 19 19 22 24 24 24 23 23 23 23 Total.......................... 24 26 25 24 25 25 27 29 28 28 28 28 28 28 Asia: Japan.................................. 9 9 9 9 10 10 10 10 10 10 10 10 10 10 Other Asia......................... 54 54 54 54 54 54 54 52 63 63 63 63 64 63 Total........................... 63 62 63 63 63 63 63 62 73 73 73 73 73 73 Africa..................................... 19 19 19 19 19 19 19 24 24 24 22 22 22 20 Other countries...................... 1 1 1 1 1 I 1 1 1 1 1 1 I 1 Total foreign countries......... 1,466 1,245 1,153 1,161 1,156 1,159 1,173 1,145 1,146 1,140 1,142 I ,127 1,156 1 ,161 International and regional: International...................... 168 168 168 168 129 129 122 122 37 29 29 29 29 28 Latin American regional... 35 36 36 36 37 37 38 38 38 38 39 13 14 14 Other regional................... 1 1 1 1 1 I 1 1 1 1 1 1 1 * Total.......................... 204 205 205 205 166 167 160 160 76 68 68 43 43 42 Grand total......... 1,670 1,450 1,358 1,366 1,323 1,325 1,333 1,305 1,222 1,208 I .210 1,169 1,199 1,203 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- Thai- Aus­ Bel­ Ger­ Swit­ Total gium ada1 mark Italy2 Korea den wan land Total tria gium many 3 Italy zerland B.LS. 1966 695 353 144 184 25 342 25 30 50 125 1967 1,563 516 .......... 314 .......... 177 .......... 25 1,047 50 60 601 125 211 1968—Mar. 1 ,879 606 414 167 25 1,272 50 60 726 125 311 Apr. 2,002 604 ...... 414 .......... 165 .......... 25 1,398 50 60 852 125 311 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 10 146 15 25 1,399 50 60 852 125 311 Aug. 2,595 1,122 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 Oct.. 2,996 1,397 12 1,164 20 146 15 25 15 1,598 50 60 1,051 125 311 Nov. 2,969 1,370 12 1,134 20 146 15 25 18 1,598 50 60 1,051 125 311 Dec. 3,330 1,692 32 1,334 20 146 15 25 20 100 1,638 50 1,051 226 311 1969—Jan.. 3,455 1,692 32 1,334 20 146 15 25 20 100 1,763 50 1,176 226 311 Feb. 3,431 1,692 32 1,334 20 146 15 25 20 100 1,738 50 1,126 226 337 Mar. 3,405 1,667 32 1 ,334 .......... 141 15 25 20 100 1,738 50 1,126 226 337 1 Includes bonds issued in 1964 to the Government of Canada in connec­ 2 Bonds issued to the Government of Italy in connection with mili­ tion with transactions under the Columbia River treaty. Amounts out­ tary purchases in the United States. standing end of 1966, $144 million; end of 1967 through Oct. 1968, $114 3 In addition, non marketable U.S. Treasury notes amounting to $125 million; and Nov. 1968 through latest date, $84 million. million equivalent were issued to a group of German commercial banks in June 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 eg ti i , o a n n a d l Europe Canada A L m a e t r in ic a Asia Africa co O un t t h r e ie r s 1966 1............................................................................... 7,853 1 1,374 611 2,453 3,206 147 62 1967 1............................................................................... ( 1 8 8 , , 6 58 0 3 6 * 1 C , 2 23 3 8 4 5 5 9 9 7 7 2 2 , , 7 7 0 0 7 7 3 3, ^ 8 7 9 5 4 1 1 0 0 2 2 6 6 7 7 [968—Feb....................................................................... 8,528 * 1,133 533 2,716 3,957 117 71 Mar...............,.................................................... 8,387 * 1,060 513 2’696 3 944 106 68 Apr...............,...................................................... 8^395 * 1,101 496 2,696 3,932 105 65 May.................................................................... 8,331 1,156 479 2,699 3,813 116 68 June.................................................................... 8,244 1 I ,'101 479 2,705 3,776 120 63 July...................................................................... 8 J79 1 I'019 501 2,735 3,735 124 64 Aug.................................................................... 8’230 1 1,007 490 2'811 3,731 120 70 Sept..................................................................... 8’323 1,108 480 2’,836 3^708 119 72 Oct............................................. ........................ 8’428 * 1 ,163 513 2,868 3,’687 129 69 Nov....................................................................... 8,547 1 ’202 503 2,888 3 ,759 122 73 Dec...................................................................... 8,695 * 1 '205 523 2’884 3,872 133 79 1969—Jan.7*............................................................. 8,358 1,106 503 2,843 3,709 127 70 Feb.71.................................................................... 8^93 I 1,156 593 2,’756 3 ,’703 120 63 12a. Europe Bel­ End of period Total A tr u ia s­ L b g o u iu u x r m e g m 2 - - m De a n rk ­ l F a i n n d ­ France G Fe e d r o . m f R an ep y . , Greece Italy N la e e n r t d ­ h s ­ N w o ay r­ t P u o g r a ­ l Spain S d w en e­ 1966 1........................... 1,374 16 67 62 91 74 227 16 110 40 76 41 67 75 1967 1........................... / (1 I , > 2 2 3 3 8 4 1 1 6 7 6 83 6 3 3 7 7 7 78 8 8 88 8 1 17 7 9 6 1 19 9 5 58 8 3 35 5 6 6 1 1 2 26 6 5 5 4 4 7 75 5 1968—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........... i ;ioi 7 61 30 70 58 126 17 87 37 44 15 52 56 July.................... 1,019 6 54 31 68 50 108 15 77 35 45 16 50 57 Aug.................... 1.007 13 49 32 66 51 114 15 71 33 47 16 46 54 Sept.................... 1,108 4 54 29 61 70 128 13 89 42 46 16 49 65 Oct............ 1,163 5 42 33 64 90 145 12 96 42 44 14 41 67 Nov.................... 1 ',202 6 48 36 62 84 177 12 98 34 45 15 49 62 Dec.................... 1 ’205 6 40 36 63 66 171 12 105 40 43 10 46 58 1969—Jan.p................. 1 ,106 3 45 34 63 59 146 11 75 37 38 9 40 59 Feb.p................. 1,156 5 52 42 61 53 149 12 93 34 35 8 40 54 12a. Europe—Continued 12b. Latin America End of period S l w a e n r it ­ d z­ T k u ey r­ U K d n i o n i m t g ed ­ Y sl u av g i o a ­ E W O u e r t o s h t p e e e r r n 3 U.S.S.R. E E O u a t s r h o te e p r r e n Total A t r i g n e a n­ Brazil Chile l C o bi m o a ­ ­ Cuba M ic e o x­ 1966 I.............................. 88 52 193 19 40 2 16 2,453 187 112 158 305 16 757 1967 i............................. ( ( 9 98 8 3 3 8 8 2 24 4 4 4 1 1 3 3 3 13 0 3 3 1 1 8 8 2 2, , 7 7 0 0 7 7 2 22 2 1 1 1 1 7 7 3 3 1 1 7 7 7 7 2 2 1 1 7 7 1 1 6 6 9 9 6 6 0 0 1968—Feb...................... 106 37 249 15 11 2 20 2,716 227 221 182 193 15 991 Mar..................... 76 28 241 15 11 1 23 2,696 198 213 184 190 15 1,007 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 11 26 2,705 195 238 166 202 14 972 July................. 78 23 249 17 11 29 2,735 203 283 169 202 14 988 Aug..................... 78 28 241 15 12 1 23 2,811 206 347 174 195 14 971 Sept...................... 93 30 269 17 II 1 20 2,836 211 342 177 195 14 957 Oct............... 87 27 300 17 17 2 19 2’868 228 348 181 201 14 938 Nov.. .................. 109 27 285 17 14 1 21 2,888 233 333 181 202 14 937 Dec...................... 93 38 318 22 15 3 21 2'884 249 338 193 206 14 943 1969—■Jan.1’.................... 95 26 303 33 11 1 18 2,843 245 338 176 190 14 914 Feb.p.................... 124 26 303 34 11 1 18 2,756 247 336 168 188 14 931 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. □ APRIL 1969 12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 12b. Latin America—Continued 12c. Asia Other Baha­ Neth. Other E pe n r d i o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ re L p .A ub . ­ B m & e a r s ­ A S n u t & i r l i l ­ es A L m at e in r­ Total M C la h a n i i n d n a ­ H Ko o n n g g India I n n e d si o a ­ Israel lics muda nam ica 19661............... 85 212 45 220 261 61 18 16 3,206 I 31 16 6 98 19671............. 1 (4 4 7 7 2 2 4 4 9 9 4 4 2 2 2 2 2 2 6 6 2 2 8 89 9 6 6 3 3 1 10 0 1 1 8 8 3 3 , , 8 8 7 9 5 4 1 1 2 3 8 0 1 1 0 0 5 5 5 5 7 7 1968—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 3,944 1 30 12 9 47 Apr....... 52 230 35 215 261 71 10 19 3,932 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 July.... 50 205 33 212 276 73 13 15 3,735 I 29 20 20 54 Aug....... 50 199 43 211 278 93 14 16 3,731 1 27 13 22 56 Sept. . .. 50 198 56 220 277 108 14 16 3,708 1 29 19 26 56 Oct........ 57 195 61 211 269 130 19 15 3,687 I 28 17 20 55 Nov...... 52 204 57 215 281 142 18 17 3,759 1 29 15 19 56 Dec....... 56 207 44 232 280 80 19 22 3,872 I 32 19 23 84 1969—Jan. ^. .. 52 200 47 213 268 147 21 17 3,709 1 27 13 19 80 Feb.p. .. 57 179 43 204 270 88 14 16 3,703 1 26 13 24 88 12c. Asia—Continued 12d. Africa 12e. Other countries End of period Japan Korea P p h i i n l e ip s ­ T w a a i n ­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) Mo co roc­ A So fr u i t c h a ( U E . g A y . p R t) . A O f t r h ic e a r Total A t l r i u a a s ­ ­ o A th ll e r 19661...................... 2,572 31 220 15 81 135 147 1 2 50 25 69 62 52 10 1967i...................... J (3 3 , , 1 1 5 4 4 7 5 5 9 9 2 3 9 0 5 3 3 3 7 7 1 1 0 0 0 0 1 1 3 3 7 8 1 10 0 2 2 1 1 2 2 3 3 7 7 1 1 1 1 5 5 2 2 6 6 7 7 5 5 4 4 1 1 3 3 1968—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 1 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....... 31048 53 293 38 90 125 120 4 7 40 15 53 63 51 12 July............. 21986 48 319 40 88 129 124 5 7 41 14 57 64 51 14 Aug............. 3,007 51 291 40 95 130 120 3 4 42 13 58 70 57 14 Sept............. 2,966 59 300 36 93 123 119 2 3 44 12 59 72 57 15 Oct.............. 2,974 68 249 38 95 142 129 5 3 45 9 67 69 56 13 Nov............. 3,057 67 241 39 93 142 122 2 3 40 8 68 73 58 14 Dec.............. 3,113 77 239 38 99 145 133 3 2 46 8 73 79 66 13 1969—Jan.P....... 2,998 71 233 36 93 138 127 3 2 40 10 72 70 58 11 Feb.P.......... 2,963 79 241 39 87 142 120 2 3 38 8 70 63 53 10 t Data on the two lines shown for this date differ because of changes in Note.-—Short-term claims are principally the following items payable reporting coverage. Figures on the first line are comparable in coverage on demand or with a contractual maturity of not more than 1 year: loans with those shown for the preceding date; figures on the second line are made to, and acceptances made for, foreigners; drafts drawn against comparable with those shown for the following date. foreigners, where collection is being made by banks and bankers for 2 Through the first line for Dec. 1967 Luxembourg was included in their own account or for account of their customers in the United States; Other Western Europe. 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

APRIL 1969 □ 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 Collec­ Accept­ govt, se­ End of period Total Total Official t o io u n t s ­ fo m a r n a a c d e c e s c t, Other Total D w e it p h o f s o it r s ­ c c u o r r it a i l e , s, Other Total institu­ Banks Others st i a n n g d­ of for­ eigners a n n a d n c f e i­ tions1 eigners paper 1966 2........................... 7,853 7,433 3,141 256 1,739 1,145 1,288 2,540 464 420 241 70 110 1967 2........................... \ ( 8 8 , , 6 58 0 3 6 8 8 , , 1 1 5 8 8 2 3 3 , , 1 13 5 7 0 3 3 0 0 6 6 1 1 , , 6 6 0 1 3 6 1 1 , , 2 2 2 2 8 8 1 1 , , 5 5 1 5 1 2 3 3 , , 0 0 1 1 3 3 4 4 9 6 8 7 4 4 2 2 5 5 2 2 8 8 7 7 7 7 4 4 6 6 3 3 1968—Feb.................... 8,528 8,162 3,152 305 1,650 1 ,198 1,628 2,978 403 366 254 55 57 Mar................... 8,387 8,062 3,031 308 1 ,525 1,198 1 ,630 2,991 410 325 219 50 56 Apr................... 8,395 8,048 3,022 280 1,561 1,180 1 ,612 3,016 399 347 240 50 57 May.................. 8,331 8,010 3,076 270 1,619 1,187 1 ,610 2,886 438 321 220 48 53 June................. 8,244 7,919 3,041 288 1,604 1,149 1 ,615 2,796 467 325 228 43 55 July................... 8,179 7,841 3,002 287 1 ,566 1,148 1 ,586 2,787 467 338 230 51 57 Aug................... 8,230 7,903 3,022 300 1,570 1,152 1 ,606 2,824 452 326 225 46 55 Sept................... 8,323 7,977 3,197 302 1 ,731 1,163 1 ,621 2,745 415 346 250 36 60 Oct.................... 8,428 8,031 3,150 267 1,705 1,178 1,657 2,773 451 397 306 38 53 Nov.................. 3,547 8,149 3,219 220 I ,811 1,189 1 ,697 2,747 486 398 279 63 55 Dec................... 8,695 8,259 3,163 246 1,697 1 ,219 1 ,733 2,854 509 436 336 37 63 1969—Jan.*................. 8,358 7,990 3,045 217 1 ,667 1,161 1 ,623 2,794 528 368 253 50 65 Feb,1'................ 8,393 8,014 3,143 225 1 ,757 1,160 1 ,563 2,746 563 378 261 48 68 1 Includes central banks. with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage 14. LONG TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area Inter­ End of period Foreign national Payable in dollars Payable Total c t o ri u e n s ­ reg a i n o d n al Total Loans o A th l e l r f r o e c n r i u e c n i r i g ­ e n s U K d n i o i n m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n c a Japan O A t s h i e a r t O c r o i t e u h s n e r ­ 1 1966............. 1 ,494 988 506 4,180 3,915 247 18 70 1,143 326 1,346 326 409 562 1967............... 2',546 1 ,858 689 3,925 3,635 274 15 56 720 427 1 ,556 180 449 537 1968—Feb.... 2,566 1 ,892 674 3,859 3,535 314 10 55 684 414 1,477 176 515 539 Mar. .. . 2,607 1 ,978 629 3,785 3,462 312 11 54 671 415 1,441 172 522 509 Apr.... 2,655 2,035 620 3,849 3,509 330 11 65 661 435 1,450 162 553 523 May... 2,754 2,079 675 3,791 3,432 348 11 65 632 429 1,442 151 553 518 June... 2,779 2,127 651 3,736 3,377 348 11 65 601 417 1,435 152 559 506 July. . . 2,615 1 ,995 620 3,627 3,269 346 11 65 552 414 1,411 145 545 495 Aug... . 2,744 2,119 625 3,612 3,259 342 12 70 519 414 1 ,401 138 567 502 Sept.... 2,895 2,265 630 3,571 3,215 345 12 71 506 418 1 ,384 136 558 498 Oct.... 2,963 2,309 655 3,645 3,282 349 13 71 495 416 1 ,418 132 621 492 Nov.... 3,009 2,300 709 3,611 3,248 350 14 69 497 420 1,382 128 624 492 Dec.... 3,140 2,390 750 3,576 3,163 396 16 68 479 428 1 ,375 122 616 488 1969—Jan.*. . 3,153 2,385 768 3,511 3,119 376 16 67 473 407 1,373 118 607 465 Feb.”.. 3,126 2,358 769 3,540 3,118 404 18 67 474 432 1,381 117 610 460 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. □ APRIL 1969 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 1967............................. -43 -121 78 45 33 10,275 9,205 1,070 2,024 3,187 -1,163 880 1,037 -157 1968............................. -500 -161 -339 -391 51 17,502 13,330 4'172 2,282 3,667 -1 ,385 1,245 1’562 -316 1969—Jan.-Feb. p .... 34 -1 34 -3 37 3,046 2,197 849 313 571 -257 252 298 -46 1968—Feb................... -42 * -42 -65 23 1,076 715 362 160 266 -105 70 80 -10 Mar.................. -92 ♦ -92 -103 11 1,163 848 315 323 415 -92 114 148 -34 Apr................... 8 8 8 1 ,379 1,038 340 161 370 -209 73 79 — 6 May............... . -44 -39 -5 -3 -2 1 ,852 1 *375 477 305 185 120 87 110 -22 June........... 3 2 -1 3 1 305 1,166 340 105 237 -131 94 113 -19 July.................. 8 — 6 14 14 1 ,496 1,109 387 167 253 -86 81 83 — 2 Aug............ -28 -28 -36 8 1,340 1 ^050 290 141 225 -84 100 187 -87 Sept.................. -83 -85 2 11 -9 1 ,279 '960 319 116 225 -110 97 201 -104 Oct................... — 14 -8 -6 -6 1 '853 1,454 399 446 687 -241 216 154 62 Nov.................. 2 2 -2 3 1,570 L27O 300 172 361 -189 146 155 -9 — 41 — 26 — IS -15 1 '790 1,468 321 104 166 -62 100 174 —74 1969—Jan.P................ 30 1 29 29 1 ,660 1,134 526 168 344 -176 130 109 21 Feb.”................ 4 -1 5 -3 7 1 ,386 1,064 323 146 227 -81 122 189 -67 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 1967...,.... 1,070 757 313 182 427 -452 229 385 305 115 79 34 17 136 1968............. 4*172 2,269 1 ,903 356 1,316 494 1,121 3,287 454 163 123 2 13 130 1969—Jan.- Feb.® 849 630 219 22 311 30 150 513 138 78 23 -1 13 85 1968—Feb... 362 76 286 32 88 118 91 329 22 -3 5 * ♦ 8 Mar... 315 262 53 16 51 9 277 353 28 -13 5 1 -59 Apr... 340 280 60 23 137 18 22 200 80 36 16 • 7 May.. 477 92 385 42 101 165 157 465 21 25 12 * 1 -46 June.. 340 199 141 18 126 74 27 244 54 19 19 * 3 July.. 387 222 164 38 188 12 58 295 62 9 20 * 1 -1 Aug... 290 79 212 32 76 39 122 269 8 -4 8 10 Sept... 319 150 170 31 88 -1 84 202 29 4 16 69 Oct... 399 211 188 18 129 14 86 246 25 19 -9 * 3 115 Nov... 300 284 16 57 116 24 36 233 34 13 17 ♦ -3 6 Dec... 321 237 84 29 104 12 86 231 29 39 9 * 10 3 1969—Jan. p . 526 363 163 12 191 9 89 301 98 32 22 -I 3 70 Feb.p. 323 266 56 10 120 21 61 212 40 45 1 * 10 15 Note.—Statistics include State and local govt, securities, and securities the United States. Also includes issues of new debt securities sold abroad of U.S. Govt, agencies and corporations that are not guaranteed by by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ INTL CAPITAL TRANSACTIONS OF THE U.S. A 83 17. NET PURCHASES OR SALES BY FOREIGNERS OF 18. DEPOSITS, U.S. GOVT. SECURITIES, LONG-TERM FOREIGN SECURITIES, BY AREA AND GOLD HELD AT F.R. BANKS FOR FOREIGNERS (In millions of dollars) (In millions of dollars) Total Period Total g I i a r o n n e n t d ­ i a , l c t e o f r i o i u g e r n n s ­ ­ r E o u pe ­ C a a d n a ­ A L i a m c t a i e n r ­ Asia r A ic f a ­ O c t o r t i 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 c E us a t r o m d a y rked securities1 gold 1967................... -1,320 -393 -927 3 -768 38 -152 -20 -27 1968................... -1,702 -329 -1,372 4 -934 -301 -109 -39 6 1966.............. 174 7,036 12,946 1967.............. 135 9’, 223 13,253 1969-Jan.~Feb.v -303 -37 -266 36 -292 -I -13 -1 5 1968—Mar... 197 8,418 13,466 1968—Feb......... -115 10 -125 49 -112 -54 -3 -5 Apr... 140 8,763 13,614 Mar........ -126 -33 -92 -28 -9 -40 14 -31 2 May.. 422 8,328 13,645 Apr........ -215 -54 -161 6 -159 -8 -2 2 June.. 153 7,676 13,232 May....... 97 137 -40 -13 -37 -6 18 -4 1 July... 202 7,609 13,281 J Ju u l n y e . . . . . . . . . . . . . . . -1 -8 5 8 0 -14 2 -1 -7 52 4 53 8 -1 -5 03 6 - - 2 6 7 0 - - 2 7 0 -1 -4 2 2 ♦ S A e u p g t . . . . . . 1 1 2 9 7 2 7 7 , , 5 7 9 7 0 7 1 1 3 3 , , 3 1 5 8 7 7 Aug........ -172 -13 -159 -58 -92 -2 -8 -I 2 Oct.... 100 7,956 13,151 Sept........ -214 -18 -195 -69 -61 -44 -21 Nov.., 220 9,673 13,059 Oct......... -179 -218 39 79 -55 6 -7 16 Dec... 216 9,120 13,066 Nov........ -198 -58 -140 41 -101 -60 -26 3 2 Dec......... -136 -6 -131 -68 -17 -5 -35 ♦ -6 1969—Jan.... 126 7,893 13,132 Feb... 121 8,062 13,160 1969—J F a e n b, . ? *’ ’ . . . . . . . . - - 1 1 5 4 5 8 -3 -5 2 - - 1 1 2 4 2 4 2 1 2 3 - - 1 1 2 6 9 3 -5 4 - -9 4 -1 * 3 2 Mar... 164 8,012 13,176 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 1968 1968 1 040 I ,688 4 259 Nov. 6......................... 6,961 Feb 26. . 1 *077 Feb. 23........................... 1 ,902 Feb. 28 ......................... 4,530 13........................... 7,180 Mar. 25. . 1,046 Mar. 30........................... 1 ,879 Mar. 27........................... 4,920 20........................... 7,388 27........................... 7,273 Apr. 29........................... 1,146 Apr. 27........................... 1 ,909 May 27 J 132 May 25 2'003 Apr. 24........................... 5,020 917 1 951 May 29........................... 5,888 6,960 June 26.......................... 6,241 11 7'439 July 29........................... 1,008 July 27.......................... 2,786 18........................... 7’290 Aug. 26.................... 11166 Aug. 31........................ 3,134 July 3 6 816 25........................... 6,976 Sept. 30.......................... 1,166 Sept. 28........................... 3,472 10 .... 6 959 17........................... 6^678 Oct. 28........................... 1,198 Oct. 26........................... 3,671 24............ .. 6 681 Nov. 25........................... 1 ',380 Nov. 30........................... 3,786 31........................... 6 183 Dec. 30............... 1 383 Dec. 28........................... 4'036 1965 1967 Aug. 7........................... 6,688 6 054 ~ 14........6..,.8..3...6........... 8........7...3..8..9............ Jan 27. . 1 358 Jan. 25 . 3,653 21........................... 6,967 15........................... 8,134 Feb 24 . . 1,592 Feb 22 . . 3,396 28........................... 7,025 22.. .................. 8'576 Mar. 31........................... 1,431 Mar. 29........................... 3,412 29........................... 8^56 Sept. 4........................... 6,984 Apr. 28........................... 1,433 Apr. 26............................ 3,047 11 7 May 26................ 1,432 May 31........................... 2,776 ............ Feb. 5........................... 8,567 June 30........................... 1 ,436 June 28........................... 3,'166 12........................... 8,332 25 7 131 19........................... 8,544 July 28........................... 1,572 July 26........................... 3,660 26........................... 8,869 Aug. 25.......................... 1'792 Aug. 30...................... 3,976 Sept. 29........................... 1,611 Sept, 27..................... 4,059 Oct. 2........................... 6,914 9........6..^..8..8..7........... 9,172 Oct. 27........................... 1 ,719 Oct. 25........................... 4,322 16........................... 7,240 12........................... 9'418 Nov. 24.......................... 1,697 Nov. 29. ................... 4'206 23........................... 7,504 19........................... 9^738 Dec. 29.......................... 1,345 Dec. 27........................... 4,241 30........................... 7,080 26........................... 9,662 1 Break in series; see Note. have occurred that affect the comparability of the data. Where such changes are known to have been significant, two figures for the same date Note.—The data represent gross liabilities of reporting banks to their are given; the first is comparable with the data that precede it, and the branches in foreign countries. Certain changes in coverage and definitions second with the data that follow. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 84 INTL, CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1969 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 Dec. Mar. June Sept. Dec. Mar. June Sept. Europe: Austria........................................................ 2 2 3 2 5 17 6 6 Belgium-Luxembourg i........................ 27 29 47 60 42 44 54 68 Denmark...................................................... 7 43 8 8 11 10 9 10 Finland........................................................ 3 4 4 4 6 7 9 9 France................................................... 64 68 92 114 111 128 136 157 Germany, Fed. Rep. of.............................. 92 108 126 150 134 128 127 174 Greece.......................................................... 11 12 15 14 20 20 24 26 Italy....................................................... . . 61 59 60 64 103 111 119 130 Netherlands................................................. 79 71 84 65 51 78 86 67 Norway........................................................ 4 4 4 5 8 10 10 10 Portugal....................................................... 6 4 6 8 7 6 8 8 Spain............................................................ 31 34 50 48 90 88 72 76 Sweden......................................................... 24 17 24 26 24 26 26 26 Switzerland.................................................. 86 63 70 112 29 31 32 71 Turkey.......................................................... 3 3 3 3 9 9 9 7 United Kingdom......................................... 310 255 274 407 774 1,095 1,514 1 ,450 Yugoslavia................................................... 1 1 4 6 6 4 Other Western Europe1............................. 4 4 6 5 14 12 13 15 Eastern Europe............................................ I 1 1 8 10 10 6 Total.................................................... 814 783 878 1,096 1,449 1,836 2,269 2,318 Canada............................................................ 205 191 199 199 547 501 559 501 Latin America: Argentina..................................................... 4 5 6 7 28 28 31 36 Brazil............................................................ 9 13 18 19 84 83 87 102 Chile............................................................. 8 10 12 6 34 31 30 38 Colombia..................................................... 9 6 9 7 22 25 25 25 Cuba............................................................ * 2 2 2 2 Mexico......................................................... 10 7 9 9 112 109 83 94 Panama........................................................ 4 5 3 5 13 10 12 15 Peru.............................................................. 6 6 5 6 29 28 28 28 Uruguay....................................................... 1 2 1 1 5 4 5 4 Venezuela.................................................... 33 35 35 36 57 62 59 57 Other L.A republics.................................... 24 15 18 23 64 59 63 72 Bahamas and Bermuda............................... 11 9 12 10 23 35 36 46 Neth. Antilles & Surinam.......................... 5 5 4 4 7 5 6 5 Other Latin America.................................. 1 2 2 1 10 9 8 8 Total..................................................... 124 120 133 134 490 490 474 532 Asia: Hong Kong.................................................. 5 4 4 4 9 7 10 10 India............................................................. 12 13 14 10 42 41 37 39 Indonesia...................................................... 4 4 5 3 4 6 6 7 Israel............................................................ 3 4 17 15 6 7 10 9 Japan............................................................ 63 75 78 91 185 178 174 195 Korea............................................................ 1 1 1 1 9 12 14 18 Philippines........................................... 8 8 8 10 33 26 22 21 Taiwan................................................ 5 6 4 3 9 8 12 12 Thailand...................................................... 5 2 2 2 13 13 15 15 Other Asia.................................................... 46 46 45 36 87 86 90 97 Total..................................................... 151 165 176 175 397 383 391 423 Africa: Congo (Kinshasa)...................................... 1 1 3 2 5 3 South Africa................................................ 8 7 6 12 14 17 16 19 U.A.R. (Egypt)............................................ 3 4 6 4 7 5 6 6 Other Africa................................................ 12 16 12 8 33 37 37 37 Total................................................... 23 29 24 25 56 61 64 65 Other countries: Australia...................................................... 61 53 46 43 62 57 62 58 All other...................................................... 8 7 7 6 10 12 10 9 Total................................... 69 60 53 49 72 69 72 68 International and regional............................. * * * ♦ * * 1 1 Grand total......................................... 1,386 1,348 1,464 1,678 3,011 3,341 3,830 3,907 1 Beginning Dec. 1967 includes Luxembourg; prior to that time Lux­ Note.—Reported by exporters, importers, and industrial and com­ embourg was included in Other Western Europe. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 21. SHORTTERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n l a a b r l s e P fo a r y i e n a i b g l n e Total P d a o y i l n l a a b r l s e Deposits with currencies banks abroad Other in reporter’s name 1964—Dec.................................................................................... 700 556 144 2,853 2,338 205 310 1965 Mar.................................................................................. 695 531 165 2,612 2,147 189 277 June........................................................................ 740 568 172 2311 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.1................................................................................ 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 21063 191 215 Sept.............................................................................. 1,028 785 243 2,539 2,146 166 227 Dec................................................................................... 1,089 827 262 2,628 2,225 167 236 1967—Mar................................................................................... 1,148 864 285 2,689 2,245 192 252 June................................................................................ 1,203 916 287 2,585 21110 199 275 Sept.. . .......................................................................... 1,353 1,029 324 2,555 2,116 192 246 Dec................................................................................... 1,371 1,027 343 2'946 2’529 201 216 Dec.1................................................................................ 1,386 1 ,039 347 3,011 2^599 203 209 1968 Mar................................................................................. 1 ,348 981 367 3,341 2.908 211 222 June... ....................................................................... 1 ,464 1 ,046 418 3'830 3,378 211 241 Sept................................................................................... 1 ,678 1 ,271 407 3,907 3’278 422 206 i Data differ from that shown for Dec. in line above because of changes tn 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 O La th ti e n r Japan O A t s h i e a r Africa o A th ll e r America 1964—Dec......................... 107 1,081 56 116 190 215 73 137 89 98 91 15 1965—Mar....................... 115 1,075 35 121 203 220 74 137 81 96 91 18 June............ 110 1,081 31 118 208 221 70 144 85 96 91 17 Sept........................ 120 1 JOI 31 116 230 217 74 138 89 96 91 18 Dec......... 136 1'169 31 112 233 209 69 196 98 114 89 17 Dec. 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 K488 27 257 303 214 88 290 HO 98 85 15 Sept........................ 411 1,452 40 212 309 212 84 283 109 103 87 13 Dec........................ 414 1,537 43 257 311 212 85 278 128 117 89 16 Dec.1..................... 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—Mar........................ 582 1 ,536 41 264 330 206 61 256 128 145 84 21 June.................... 759 1 ,567 32 288 345 205 67 249 131 134 83 33 Sept....................... 757 1,625 43 313 376 198 62 251 126 142 82 32 i 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 □ APRIL 1969 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 Brazil Burma Canada Chile period total tary States rest of istan tina tralia tria gium world 1 Fund world 1962.......................... 41,475 2,194 16,057 23,225 36 61 190 454 1 ,365 225 42 708 43 1963 .......................... 42,305 2,312 15 ;596 24,395 36 78 208 536 1 ,371 150 42 817 43 1964......................... 43,015 2,179 15,471 25 ,'365 36 71 226 600 1 '451 92 84 1,026 41 1965 ......................... 243,230 31 ,869 13,806 27,285 35 66 223 700 1 >58 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.......................... 41.600 2,682 12 >65 26'855 33 84 231 701 1 '480 45 84 1 >15 45 1968—Fcb................ 2,699 1 1,900 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 31 84 232 701 I ,450 45 84 976 45 May.............. 2,735 10,468 31 84 235 701 1 ,450 45 84 926 44 J u ne............. 40,516 2,210 10,681 27,620 31 89 257 714 1 ,512 45 84 926 45 July............... 2,212 10,676 31 94 259 714 I ,'518 45 84 926 45 Aug............... 2,230 10,681 31 99 260 714 1 ,518 45 84 926 45 Sept............... 40,725 2,296 10,755 27,675 31 104 258 714 I '524 45 84 863 45 Oct................ 2,299 10,788 31 109 258 714 1 ,522 45 84 863 45 Nov.............. 2,286 10,897 31 109 257 714 1,522 45 84 863 45 Dec......... "40,900 2,288 10,892 "27,720 31 109 257 714 1 ,524 45 84 863 46 1969—Jan".... . . 2,288 10,828 31 109 258 714 1 ,524 45 84 863 47 Feb."............ 2,292 10,801 31 257 714 1 ,522 84 863 46 Ger- End of Co- Den- Fin- many, Ireperiod lombia mark land France Fed. Greece India Iran Iraq land Israel Italy Japan Rep. of 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 U2 19 56 2’107 304 1965 ......................... 35 97 84 4>06 4,410 78 281 146 110 21 56 2 >04 328 1966.......................... 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967......................... 31 107 45 5,234 4.228 130 243 144 115 25 46 2,400 338 1968—Feb................ 32 107 45 5,234 4,125 1 30 243 143 151 25 46 2,368 Mar........... ■ 32 107 45 5 >35 3,972 134 243 166 165 37 46 2,376 341 Apr............... 33 107 46 5,235 3,’972 138 243 166 193 52 46 2’401 341 May. 33 107 46 5,235 3,973 141 243 166 193 62 46 2'452 341 June.............. 33 113 46 4,739 4’312 142 243 166 193 71 46 2,673 355 July............... 33 113 46 4,576 4,350 141 243 166 193 78 46 2,698 355 Aug............... 32 113 45 4,366 4,421 140 243 158 193 81 46 2,730 355 Sept......... 32 113 45 4,166 4,456 140 243 158 193 82 46 2,784 355 Oct................ 32 113 45 4,136 4,456 140 243 158 193 79 46 2'784 355 Nov............... 31 113 45 3'876 4,538 145 243 158 193 79 46 2 >46 356 Dec............... 31 1 14 45 3 >77 4,539 140 243 158 193 79 46 2>23 356 1969—Jan."............. 31 114 45 3,877 4,539 132 243 158 193 79 46 2,923 356 Feb."............ 31 1 14 45 3,877 4,541 132 243 158 193 79 46 2,925 356 End of Leb- Malay- Mexi- Moroc- Nether- Nor- Paki- Philip- Portu- Saudi period Kuwait anon Libya sia co co lands way stan Peru pines gal Arabia 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..................... 136 193 68 31 166 21 1 ,711 18 53 20 60 699 69 1968—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 66 165 21 1 '697 24 54 20 69 761 94 Aug............... 1 16 288 85 66 165 21 1 ,697 24 54 20 61 835 119 Sept............... 1 10 288 85 66 165 21 1 '697 24 54 20 62 853 119 Oct................ 112 288 85 66 165 21 I '697 24 54 20 59 853 119 Nov........ 122 288 85 66 165 21 1 '697 24 54 20 65 856 119 Dec............... 122 288 85 66 165 21 1 ,697 24 54 "20 62 856 119 122 288 85 21 1,697 24 54 58 857 119 Feb."............ 124 288 85 .............. 21 1 >98 23 54 ............6..0 856 119 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ 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 S A o fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o i n m t g e ­ d U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n o t t t r i l . e ­ ments 4 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............................ 583 785 203 3,089 81 92 97 93 1'291 140 401 22 -624 1968 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 -345 847 785 203 2’603 81 91 97 93 133 401 22 -331 946 785 203 2,628 81 89 97 93 133 401 22 -326 June.................. 975 785 225 2,656 81 89 97 93 1,474 133 403 23 -333 July................... 1 ,003 785 225 2'600 81 89 97 93 133 403 33 -274 Aug................ 1,016 785 225 2j 629 81 89 97 93 134 403 33 -269 Sept................... 1 ,069 785 225 2,628 81 92 97 93 1,486 134 403 44 -265 1,145 785 225 2,626 81 92 97 93 134 403 44 -274 1’199 785 225 2; 625 81 92 97 93 133 403 50 -260 Dec.................. 1 ,243 785 225 2; 624 81 92 97 93 1,474 133 403 50 -349 1,287 785 225 2,623 81 92 97 93 403 50 -276 1 ,321 225 2; 646 92 97 403 50 -278 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 arc 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics' 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North arid South America Asia Other World Period produc­ Congo tion 1 A So fr u i t c h a R de h s o ia ­ Ghana s ( h K a i s n a ­ ) U S n ta i t t e e s d ( 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 in il e ip s ­ t A ra u l s ia ­ ot A h l e l r I960............................. 1,175.0 748.4 19.6 30.8 U.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 ............................. 1,410.0 1,068.7 18.0 26.7 5.4 53.4 103.7 6.4 6.2 9.0 3.4 17.2 28.4 63.5 1968--Jan.................... 90.3 2.1 7.7 r.5 .9 .3 2.0 Feb................... 90.0 2.2 7.7 '.4 .7 .3 2.0 Mar.................. 91.8 2.1 8.3 .4 .7 .3 24.1 2.8 Apr................. 91.8 8.2 .3 .7 .3 2.5 May.......... 93.1 8.4 .3 .7 .3 2.3 June................ 91.5 7.5 .6 July................ 90.5 7.4 .8 Aug .......... 91.5 7.7 .6 Sept................ 93.7 8.3 .6 Oct............... 92.4 7.7 .7 Nov................. 87.9 7.5 .6 Dec,.......... 83.5 7.7 .7 1969--Jan................... 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 □ APRIL 1969 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changesduring the last 12 months Mar. 31, 1968 Rate Country 1968 1969 M a a s r . o f 3 1, Per Month 1969 cent effective Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Argentina............... 6.0 Dec. 1957 6.0 Austria............... 3.75 Oct. 1967 3.75 Belgium.............. 3.75 Mar. 1968 4.5 5.0 5.0 Brazil.................. 12.0 Jan. 1965 12.0 Burma........................ 4.0 Feb. 1962 4.0 Canada 1............ . 7.5 Mar. 1968 26.5 6.0 6.5 7.0 7.0 Ceylon................ 5.0 May 1965 5.5 5.5 Chile 3................ 16.61 Jan. 1968 19.09 19.09 Colombia........... 8.0 May 1963 8.0 Costa Rica......... 3.0 Apr. 1939 3.0 Denmark................ 7.0 Mar. 1968 6.5 6.0 7.0 7.0 Ecuador..................... 5.0 Nov. 1956 5.0 El Salvador........................... 4.0 Aug. 1964 4.0 Finland.............. 7.0 Apr. 1962 7.0 France.................... 3.5 Apr. 1965 5.0 6.0 6.0 Germany, Fed. Rep of 3.0 May 1967 3.0 Ghana........................ 5.5 Mar. 1968 5.5 Greece................ 4.5 July 1967 5.0 5 0 Honduras 4........ 3.0 Jan. 1962 3.0 Iceland................ 9.0 Jan. 1966 9.0 India.............. 5.0 Mar. 1968 5.0 Indonesia..................... 9.0 Aug. 1963 9.0 Iran............................. 5.0 7.0 7,0 Ireland................................... 7.39 Mar. 1968 7.38 7.31 7.44 7.25 6.86 6.81 7.0 7.17 7.12 8.0 8.0 Israel.................................... 6.0 Feb. 1955 6.0 Italy.................... 3 5 June 1958 3.5 Jamaica...................... 6.0 Nov. 1967 5.0 5.5 5.5 Japan............................... 6.21 5,84 5.84 Korea..................................... 28.0 28.0 Mexico............................ 4.5 June 1942 4.5 Netherlands........................... 4.5 Mar. 1967 5.0 5.0 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 5.0 Peru............................ 9.5 Nov. 1959 9.5 Philippine Republic........... 7.5 Feb. 1968 7.5 Portugal................................. 2.5 Sept. 1965 2,75 2.75 South Africa......................... 6.0 July 1966 5.5 5.5 Spain.................. 4.0 June 1961 4.0 Sweden.................................. 5.5 Feb. 1968 5.0 6.0 6.0 Switzerland........................... 3.0 July 1967 3.0 Taiwan .......................... 10.8 May 1967 U.9 11.9 Thailand.............................. 5.0 Oct. 1959 5.0 Tunisia................................... 5.0 Sept. 1966 5.0 Turkey................... 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom.................. 7.5 Mar. 1968 7.0 8.0 8.0 Venezuela.............................. 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be ,25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the 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. 1, 1959, new rediscounts have been granted at Costa Rica—5 per cent for paper related to commercial transactions the average rate charged by banks in the previous half year. Old redis­ (rate shown is for agricultural and industrial paper); counts remain subject to old rates provided their amount is reduced by Ecuador—6 per cent for bank acceptances for commercial purposes; one-eighth each month beginning with May 1, 1959, but the rates are Indonesia—various rates depending on type of paper, collateral, com­ raised by 1.5 per cent for each month in which the reduction does not modity involved, etc.; occur. Japan—penalty rates (exceeding the basic rate shown) for borrowings 4 Rate shown is for advances only. from the central bank in excess of an individual bank’s quota; Peru—S per cent for agricultural, industrial, and mining paper; Note.—Rates shown are mainly those at which the central bank either Philippines—4 per cent for financing the production, importation, and dis­ discounts or makes advances against eligible commercial paper and/or tribution of rice and corn and 5.75 per cent for credits to enterprises en­ govt, securities for commercial banks or brokers. For countries with gaged in export activities. Preferential rates are also granted on credits to more than one rate applicable to such discounts or advances, the rate rural banks; shown is the one at which it is understood the central bank transacts Spain—4.6 per cent for financial paper rediscounted for banks (rate shown the largest proportion of its credit operations. Other rates for some is for commercial bills); and of these countries follow: Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ 1962), and 4 per cent for advances against govt, bonds, mortgages, or gold, pending on type of transaction; and for rediscounts of certain industrial paper, and 5 per cent on advances against securities of Venezuelan companies. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ MONEY RATES; ARBITRAGE A 89 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month Tr b e i a l s ls u , ry Da d y a - y t o­ B a a a c n n c c k e e p e s r , t ­ s’ Tr b e i a ll s s u , ry Da d y a - y t o­ a B llo an w o k n a e n r c s e ’ Da d y a - y t o­ Tr 6 b e 0 i a l - s l 9 s u 0 , r y Da d y a - y t o­ Tr b e i a l s ls u , r y Da d y a - y t o­ d P is ri c v o a u t n e t 3 months! money 2 3 months 3 months money deposits money J days 4 money-5 3 months money rate 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—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—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 J une........... 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 5.92 2.75 3.07 4.47 3.81 3.75 Sept............ 5.62 5.11 7.24 6.74 6.21 5.31 6.76 2.75 2.66 4.39 3.73 3.75 Oct. 5.63 5.10 6.97 6.51 5,93 5.00 7.08 2.75 3.18 4.47 4.15 3.75 Nov............ 5.64 4.73 7.03 6.67 5.92 5.00 9.16 2.75 1.55 4.50 4.86 3.75 Dec 5.96 5,31 7.26 6.80 5.99 5.00 8.22 2.75 1.84 4.65 4.96 3.75 1969„jan............. 6.36 6.02 7.28 6.77 5.91 5,00 8.04 2.75 3.30 4.90 4.44 3.75 Feb............. 6.31 5.34 7,32 6.97 6.08 5.08 2.75 3.27 5.00 5.38 3.75 i Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 3 R Ba a s te ed s h o o n w w n e i e s k l o y n a p v r e i r v a a g t e e s s o ec f u d r a it i i l e y s . closing rates. Sec N ti 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 in k g d a a n ta d , M se o e n e “ ta In ry te S rn ta a t t i i s o t n ic a s l , 1 F 9 i 6 n 2 a . nce,” 4 Rate in effect at end of month. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date q K ( u U a i b o n U d a n g t s j i . a . d S t i t s e o i . t ) d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o a o d r n ) d f ( ( o p i - + s r o c ) w u ) o n a u o o r d n n r d t i L n ( o c f N n e a o n v d e f t o o t i v n r e ) qu A i o n t s e d C ana q d u A a o U d t j . a . S ti t . o o n U St n a i t t e e s d C S ( a f p a n o r v a e f o a d d r a ) C d f ( ( d o a i . - s o n r + c w ) l a ) o l d a a u o o i r r a n n s d r n t i C n ( c a f N a e n o v n a e f o t d t i r v a ) e Canada basis 1968 6.43 5.42 1.01 -.87 + . 14 5.55 5,40 5.42 -.02 -.62 -.64 8............. 6.41 5.41 1.00 -.89 + .11 5.60 5,45 5.41 + .04 -.63 -.59 15............. 6.44 5.38 1.06 -1.65 -.59 5.65 5.50 5.38 + .12 -.48 -.36 22.............. 6.66 5.41 1.25 n.a. n.a. 5.65 5.50 5.41 + .09 -.54 -.45 29............. 6.66 5.48 1,18 -3.54 -2.36 5.66 5,50 5.48 + .02 -.32 -.30 6.69 5.62 1.07 -4.80 -3.73 5.70 5.54 5.62 -.08 -.30 -.38 13.............. 6.63 5.88 .77 -5.06 -4.29 5.79 5,63 5.86 -.23 -.41 -.64 20.............. 6.63 6.08 .55 -4.13 -3.58 6.14 5.96 6.08 -.12 -.43 -.55 27........ 6.63 6.15 .48 -3.79 -3.31 6.24 6.06 6.15 -.09 -.45 -.54 1969 6.63 6.11 .52 -3.29 -2.77 6.33 6.15 6.11 + .04 -.24 -.20 10............. 6.63 6,08 .55 -3.20 -2.65 6.46 6.27 6.08 + .19 -.02 + .17 17 6.66 6.01 .65 -2.99 -2.34 6.37 6.18 6.01 + .17 -.13 + .04 24............. 6.60 6.12 .48 -2.70 —2.22 6.34 6,16 6.12 + .04 -.13 -.09 31............. 6.58 6.15 .43 -2.55 -2.12 6.37 6.18 6.15 + .03 -.09 -.06 Feb. 7............. 6.60 6.15 .45 —2.61 -2.16 6.26 6.08 6,15 -.07 -.04 -.11 14............. 6,53 6.06 .47 -2.28 -1.81 6.19 6.01 6.06 -.05 + .15 + .10 20 6.53 6.08 .45 -2.14 -1.69 6,21 6.03 6.08 -.05 + .28 + .23 28.............. 7.55 6.17 1.38 -2,63 -1.25 6.43 6.24 6.17 + .07 + .50 + .57 7.58 6.05 1.53 -3.88 -2,35 6.65 6.45 6.05 + .40 + .43 + .83 14............. 7.64 5.99 1.65 -3.38 -1.73 6.62 6.43 5.99 + .44 + .48 + .92 21.............. 7.64 5.95 1.69 -2.80 -1.11 6.63 6.43 5.95 + .48 + .61 + 1.09 28............. 7.61 5.92 1.69 -2.81 -1.12 6.56 6.37 5.92 + .45 + .74 + 1.19 Apr. 3............. 7.60 6.05 1.55 -2.79 -1.24 6.36 6.36 6.05 + .31 + .82 + 1.13 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. AH 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. 1260, 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 □ APRIL 1969 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Aus rah a Period Argentina Austria Belgium Canada Ceylon Denmark Finland (peso) (schilling) (franc) (dollar) (rupee) (krone) (markka) (pound) (dollar) 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 223.41 UI 1.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967............................................................. .30545 111.25 3.8688 2.0125 92,689 20.501 14.325 229.553 1968............................................................. .28473 111.25 3.8675 2.0026 92.801 16.678 13,362 23.761 1968-—Mar.. ............................................. .28468 3111.54 3.8635 2.0136 92.171 16,688 13,419 23,763 Apr................................................... .28469 111.64 3.8655 2,0105 92.568 16.688 13.413 23.763 May................................................. .28469 111.05 3.8670 2,0110 92.760 16.671 13.399 23.763 June............................................. .28470 110.84 3.8683 2.0058 92.846 16.662 13.373 23.763 July................................................... .28474 111.09 3.8706 2.0013 93,123 16.669 13.317 23.763 Aug.................................................. .28469 111.14 3.8702 1.9982 93.213 16.673 13.302 23,763 Sept.. ............................................. 28469 110.97 3 8702 1 9916 93.182 16.674 13.321 23.763 Oct.................................................. .28478 111.08 3.8706 1.9864 93.202 16.678 13.321 23.763 Nov.. ............................................... .28476 110.89 3.8664 *1.9927 93.177 16.675 513.308 523.757 Dec................................................... .28500 110,82 3.8681 1.9935 93.177 16.678 13.340 23.763 1969-—Jan., .......................................... .28512 110.95 3.8670 1.9921 93.206 16.678 13.317 23,763 Feb......................................... .28490 111,15 3.8650 1.9928 93.060 16.678 13.288 23.772 Mar........................................ .28489 111.17 3.8671 1 .9883 92.863 16.678 13.321 23.785 Period F (f r r a a n n c c e ) G (d m e e r u a m t r s k a c ) n h y e ( I r n up 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 an ) ( M do s a l i l l a a a y r) ­ M (p e e x s i o c ) o ( e g N r u l i a e l n d th d e ­ r s ) 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 25.007 616.596 279.30 .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 1968............................................................. 20.191 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27,626 1968-—Mar.................................................. 20.316 25.067 13.319 3239.97 .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 Oct.............................. 20.104 25.120 13.241 238.97 .16055 .27890 32.551 8.0056 27,484 Nov.................................................. 520.121 725.153 13.230 238.58 <16037 .27925 32.538 8.0056 527.556 Dec.............................................. 20.199 25.032 13.234 238.42 .16026 .27940 32.614 8.0056 27.710 1969--Jan................................................... 20.199 24.978 13.244 238,70 .16022 .27934 32.640 8.0056 27.636 Feb................................................... 20.188 24.881 13.244 239.14 .15978 .27945 32.675 8.0056 27.581 Mar........................................... 20.167 24.879 13.244 239,17 .15911 .27935 32,639 8.0056 27.565 New Zealand United Period (pound) (dollar) N (k o r r o w ne a ) y (e P s o g c a u rt l d u o ­ ) ( A S r o a fr u n ic t d h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( e S fr r w a la n i n t c z d ) ­ (p K d o i o u n m n g d - ) 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............................................................. 276.69 8131.97 13.985 3,4784 139,09 1.6383 19,373 23.104 275.04 1968............................................................. 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1968--Mar.................................................. 3111.66 14,005 3.4854 3139.46 1.4264 19.345 23.085 3239,97 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 Oct................................................... 111.19 13.998 3.4844 138.88 1.4282 19,335 23.270 238,97 Nov.................................................. 111,01 513.999 53.4855 138.65 *1.4281 719.323 23.256 238,58 Dec................................................... 110.93 14.000 3.4886 138,56 1.4279 19,323 23.259 238,42 1969--Jan............................................ 111.06 13.988 3.4925 138.72 1.4278 19.340 23.146 238.70 Feb................................................. 111.27 13.988 3.4975 138.98 1.4279 19.326 23.145 239.14 Mar.................................................. 111,28 14.001 3.5042 138.99 1.4277 19.340 23.261 239.17 t Effective Feb. 14, 1966, Australia adopted the decimal currency 8 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. 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 to 4.2 markkaa per U.S. dollar. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, 3 Quotations not available Mar. 15, 1968. the following countries devalued their currency in relation to the U.S. 4 Quotations not available Nov. 20, 1968. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. 5 Quotations not available Nov. 20-22, 1968. Averages of certified noon buying rates in New York for cable transfers. 6 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to For description of rates and back data, see “International Finance,” 7.5 rupees per U.S. dollar. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ? Quotations not available Nov. 20-21, 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

APRIL 1969 □ BANKS AND BRANCHES A 91 NUMBER IN OPERATION ON DECEMBER 31, 1968 Commercial and mutual savings banks Number maintaining branches or additional offices 1 Commercial Mutual Commercial Mutual State savings savings Member Nonmember Member Nonmember Total Total Total Total Non­ Non­ Non­ Non­ Na­ State In­ in­ In­ in­ Na­ State In­ in­ In­ in­ tional sured sured sured sured tional sured sured sured sured United States 2............ 14,179 13,679 4,71631,262 7,504 197 333 167 3,946 3,665 1,550 462 1,633 20 199 82 Alabama....................... 268 268 89 22 157 .......... 76 76 40 5 31 Alaska.......................... 14 12 5 5 2 2.......... 8 8 5 .......... 3 Arizona........................ 13 13 3 1 9 7 7 2 1 4 Arkansas...................... 248 248 68 13 164 3 72 72 33 7 32 California..................... 162 162 72 10 74 6 130 130 58 9 61 2 .......... Colorado...................... 257 257 118 17 84 38 2 2 2 Connecticut................. 135 66 29 6 28 3 69 .......... 86 45 21 6 18 41 .......... Delaware...................... 21 19 5 2 12 ..........2 .......... 11 9 2 2 5 ...... 2 District of Columbia... 14 14 10 2 2 13 13 9 2 2 Florida......................... 461 461 204 8 244 5 6 6 .......... 1 5 Georgia........................ 428 428 62 12 343 11 .......... 85 85 29 7 49 Hawaii................. 11 11 2 .......... 5 4 8 8 2 .......... 5 i Idaho............................ 26 26 9 7 10 14 14 6 3 5 Illinois......................... 1,074 1,074 420 91 558 5 39 39 25 6 8 Indiana......................... 419 415 123 74 214 4 4.......... 188 188 71 27 90 Iowa............................. 673 673 102 57 502 12 210 210 40 16 154 Kansas......................... 601 601 171 39 390 1 59 59 27 8 24 Kentucky..................... 346 346 80 14 247 5 125 125 43 8 74 Louisiana..................... 229 229 48 10 170 1 114 114 34 9 71 Maine........................... 75 43 21 6 13 3 31 1 44 33 16 4 12 i 11 .......... Maryland..................... 128 122 48 7 66 1 6 77 71 34 6 30 i 6 Massachusetts............. 332 158 87 17 50 4 8 166 209 121 67 17 36 i 6 82 Michigan..................... 338 338 98 110 128 2 191 191 69 60 61 i Minnesota................... 724 723 196 27 497 3 1 6 6 2 4 Mississippi................... 185 185 40 6 139 .......... 102 102 32 5 65 Missouri....................... 667 667 98 76 485 8......... 83 83 20 18 45 Montana...................... 135 135 48 40 46 1 3 3 1 2 Nebraska..................... 441 441 127 12 296 6 36 36 20 1 15 Nevada......................... 9 9 4 2 3 7 7 3 2 2 New Hampshire.......... 109 77 52 1 21 3 32.......... 37 29 23 5 8 New Jersey................... 250 229 143 40 43 3 21 .......... 186 174 109 32 33 12 New Mexico................. 63 63 33 6 24 43 43 20 3 20 New York................... 444 319 176 78 42 23 125 271 180 100 52 21 7 91 North Carolina........... 121 121 22 4 94 1 75 75 16 3 55 1 North Dakota............. 169 169 42 4 120 3 49 49 9 1 38 1 Ohio............................. 526 525 218 126 180 1 I 261 261 138 54 69 Oklahoma.................... 424 424 220 23 180 50 50 37 3 10 Oregon......................... 51 50 11 2 35 2 1 29 28 7 1 20 1 Pennsylvania............... 516 509 327 31 142 9 7 245 239 153 19 66 I 6 Rhoda Island............... 20 13 4 1 6 2 7 .......... 20 13 4 1 6 2 7 South Carolina............ 118 118 24 6 87 1 67 67 20 3 44 South Dakota.............. 165 165 34 24 106 1 39 39 10 3 26 Tennessee..................... 303 303 77 10 212 4 131 131 57 5 68 1 Texas............................ 1, 151 1,151 61 546 9 41 41 7 34 Utah............................. 54 54 12 8 34 19 19 3 4 12 Vermont...................... 51 45 27 t7 1 6 .......... 25 23 14 9 2 .......... Virginia........................ 237 237 107 45 85 149 149 77 22 50 Washington................. 101 94 27 8 58 1 7 54 48 15 5 28 6 West Virginia............... 195 195 80 34 81 4 4 2 2 Wisconsin..................... 606 603 1 17 49 433 4 3 .......... 139 139 26 9 104 .......... Wyoming. ............... 70 70 40 13 17 Virgin Islands.............. 1 1 1 1 1 1 Excludes banks that have banking facilities only; banking facilities Note.—Each branch and additional office is located in the same State are shown separately; see note 4. as its parent bank except that 1 national bank in N.J. has a branch in 2 Includes 1 national bank in the Virgin Islands, with 6 branches, that Pa., 1 national bank in Calif, has 2 branches in Wash, and 1 in Ore,, became a member of the F.R. System in 1957, 1 noninsured (unincorporated) bank in N.Y. has 1 branch in Mass, and 3 State member bank figures include 1 noninsured trust company 1 in Pa.; 2 insured nonmember banks in Puerto Rico have 8 branches in without deposits. N.Y. In the table these branches are shown according to their own loca­ 4 Banking facilities (other than branches) that are provided at military tion rather than that of the parent bank. and other Government establishments through arrangements made by the Treasury; they are operated by 162 banks, 62 of which have no other type of branch or additional office. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 92 BANKS AND BRANCHES □ APRIL 1969 NUMBER IN OPERATION ON DECEMBER 31, 1968—Continued Branches and additional offices 1 Class of bank Location State Commercial banks Outside head office city Mutual Bank­ savings In ing Member Nonmember banks head facili­ Total office In head In con­ In non­ ties 4 Total city office tiguous contig­ Na­ In­ Non­ In­ Non­ county counties uous tional State sured insured sured insured counties United States 2............ 19,675 18,777 10,797 33,555 4,379 46 729 169 7,295 6,253 2,940 3,187 236 Alabama...................... 230 230 165 11 54 122 87 10 11 6 Alaska.......................... 50 50 41 9 14 23 8 5 5 Arizona........................ 273 273 186 17 70 92 63 72 46 5 Arkansas...................... 140 140 76 20 44 80 54 5 1 1 California..................... 2,751 2,751 2,215 261 270 5 399 380 567 1 ,405 38 Colorado.................... 2 2 2 2 8 Connecticut.................. 500 376 192 110 74 124 ...........1..42 275 62 21 Delaware..................... 88 78 4 33 41 .............10 14 43 27 4 District of Columbia.. 97 97 59 31 7 97 3 Florida......................... 6 6 I 5 6 18 Georgia........................ 235 235 147 31 57 174 4 8 49 11 Hawaii......................... 117 117 41 .............. 75 1 42 30 45 6 Idaho........................... 141 141 103 24 14 12 13 26 90 1 Illinois.......................... 39 39 25 6 8 39 6 Indiana......................... 573 573 305 65 203 302 271 4 Iowa............................. 281 281 50 23 208 97 136 48 Kansas......................... 59 59 27 8 24 58 1 2 Kentucky,.................... 285 285 127 45 113 175 105 5 1 Louisiana..................... 327 327 156 33 138 201 117 6 3 2 Maine........................... 217 198 87 55 53 3 19 ............4.6 84 75 12 2 Maryland..................... 501 459 227 60 165 7 42 147 120 145 89 10 Massachusetts.............. 881 680 388 156 134 2 32 169 428 444 8 1 3 Michigan..................... 1,095 1,095 510 397 186 2 501 389 194 11 4 Minnesota.................... 10 10 6 4 10 Mississippi................... 293 293 117 13 163 125 93 44 31 3 Missouri....................... 83 83 20 18 45 83 2 Montana...................... 3 3 1 2 2 1 2 Nebraska..................... 36 36 20 1 15 36 1 Nevada......................... 76 76 54 12 10 20 17 11 28 1 New Hampshire.......... 50 40 33 I 6 .............1.0 ............. 23 23 4 1 New Jersey.................. 822 790 516 172 102 32 ............. 284 537 1 6 New Mexico................ 112 112 60 5 47 63 40 8 1 2 New York................... 2,492 2,205 1,107 983 107 8 287 1,228 716 454 94 7 North Carolina........... 931 931 329 128 468 6 149 97 186 499 2 North Dakota............. 67 67 9 2 54 2 9 36 21 1 2 Ohio............................. 1,128 1,128 644 328 156 513 599 16 2 Oklahoma.................... 51 51 37 3 11 51 5 Oregon......................... 307 306 236 12 58 1 60 44 45 158 Pennsylvania................ 1,593 1,515 940 228 345 2 78 456 648 488 1 6 Rhode Island............... 209 156 58 28 63 7 53 .............56 89 39 25 2 South Carolina............ 344 344 214 3 127 83 55 49 157 6 South Dakota.............. 91 91 52 4 35 14 31 23 23 Tennessee..................... 412 412 244 31 136 i 259 138 7 8 5 Texas............................ 42 42 7 35 42 21 Utah............................. 112 112 57 25 30 23 38 9 42 3 Vermont....................... 73 71 41 30 2 11 27 26 9 Virginia........................ 694 694 423 107 164 271 115 135 173 17 Washington.................. 524 485 395 35 55 39 182 130 72 140 2 West Virginia.............. 4 4 2 2 4 Wisconsin.................... 222 222 47 18 157 45 141 35 I 1 Wyoming...................... 1 Virgin Islands.............. 6 6 6 .............. 3 .............. 3 For notes see p. A-91. 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 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 Board Robert E. Nichols, Special Assistant to Board OFFICE OF THE SECRETARY DIVISION OF FEDERAL RESERVE BANK OPERATIONS Robert C. Holland, Secretary Kenneth A. Kenyon, Deputy Secretary John R. Farrell, Director Elizabeth L. Carmichael, Assistant Secretary John N. Kiley, Jr., Associate Director Arthur L. Broida, Assistant Secretary James A. McIntosh, Assistant Director Robert P. Forrestal, Assistant Secretary P. D. Ring, Assistant Director Charles C. Walcutt, Assistant Director LEGAL DIVISION Lloyd M. Schaeffer, Chief Federal Reserve David B. Hexter, General Counsel Examiner Thomas J. O’Connell, Deputy General Counsel DIVISION OF SUPERVISION AND REGULATION Jerome W. Shay, Assistant General Counsel Frederic Solomon, Director Robert F. Sanders, Assistant General Counsel Brenton C. Leavitt, Deputy Director Pauline B. Heller, Adviser Frederick R. Dahl, Assistant Director DIVISION OF RESEARCH AND STATISTICS Jack M. Egertson, Assistant Director J S D . t a C e n p h i h a e e l r n l H e H s . B . P r A a i r x l t l il e , r e D o , i A d r , e s s c A o to d c r v ia is te e r Director J J T a o h h n o n e m t a N O s . . L A H y . a o r S n t i , d , A m A s a s s s n i i s s , t t a a A n n s t t s i D D st i i a r r n e e t c c t t o o D r r i rector Lyle E. Gramley, Adviser Tynan Smith, Acting Assistant Director Stanley J. Sigel, Adviser DIVISION OF PERSONNEL ADMINISTRATION Tynan Smith, Adviser Kenneth B. Williams, Adviser Edwin J. Johnson, Director Murray S. Wernick, Associate Adviser John J. Hart, Assistant Director James B. Eckert, Assistant Adviser DIVISION OF ADMINISTRATIVE SERVICES Peter M. Keir, Assistant Adviser Bernard Shull, Assistant Adviser Joseph E. Kelleher, Director Louis Weiner, Assistant Adviser Harry E. Kern, Assistant Director DIVISION OF INTERNATIONAL FINANCE OFFICE OF THE CONTROLLER Robert Solomon, Director John Kakalec, Controller * Robert L. Sammons, Associate Director John E. Reynolds, Associate Director OFFICE OF DEFENSE PLANNING 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 Jerold E. Slocum, Director Bernard Norwood, Adviser Ralph C. Wood, Adviser Robert F. Gemmill, Associate Adviser Samuel Pizer, Associate Adviser *On leave of absence. A 93 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 94 FEDERAL RESERVE BULLETIN □ APRIL 1969 FEDERAL OPEN MARKET COMMITTEE Wm. McC. Martin, Jr., Chairman Alfred Hayes, Vice Chairman Karl R. Bopp Philip E. Coldwell J. L. Robertson Andrew F. Brimmer J. Dewey Daane Charles J. Scanlon George H. Clay Sherman J. Maisel William W. Sherrill George W. Mitchell Robert C. Holland, Secretary Arthur L. Broida, Deputy Secretary David P. Eastburn, Associate Economist Kenneth A. Kenyon, Assistant Secretary Ralph T. Green, Associate Economist Charles Molony, Assistant Secretary A. B. Hersey, Associate Economist Howard H. Hackley, General Counsel Robert G. Link, Associate Economist David B. Hexter, Assistant General Counsel J. Charles Partee, Associate Economist Daniel H. Brill, Economist John E. Reynolds, Associate Economist Stephen H. Axilrod, Associate Economist Robert Solomon, Associate Economist Ernest T. Baughman, Associate Economist Clarence W. Tow, 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 Mark C. Wheeler, first federal John Fox, eighth federal reserve RESERVE DISTRICT DISTRICT George S. Moore, second federal Philip H. Nason, ninth federal RESERVE DISTRICT reserve district George H. Brown, Jr., third federal Jack T. Conn, tenth federal RESERVE DISTRICT reserve district George S. Craft, sixth federal John E. Gray, eleventh federal RESERVE DISTRICT reserve district Donald M. Graham, seventh federal Frederick G. Larkin, Jr., twelfth RESERVE DISTRICT FEDERAL 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 95 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 John M. Fox Earle O. Latham New York............. ....10045 Albert L. Nickerson Alfred Hayes James M. Hester William F. Treiber Buffalo.............. ....14240 Gerald F. Britt 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 J. Ward Keener Walter H. MacDonald Cincinnati........ ....45201 Graham E. Marx Fred O. Kiel Pittsburgh........ ....15230 Lawrence E. Walkley Clyde E. Harrell Richmond............. ....23213 Wilson H. Elkins Aubrey N. Heflin Robert W. Lawson, Jr. Robert P. Black Baltimore.......... ....21203 Arnold J. Kleff, Jr. Donald F. Hagner Charlotte.......... ....28201 James A. Morris Edmund F. MacDonald Atlanta.................. ....30303 Edwin I. Hatch Monroe Kimbrel John C. Wilson Kyle K. Fossum Birmingham.......35202 Mays E. Montgomery Dan L. Hendley Jacksonville........32201 Henry K. Stanford Edward C. Rainey Nashville.......... ....37203 James E. Ward Jeffrey J. Wells New Orleans.......70160 Robert H. Radcliff, Jr. Arthur H. Kantner Chicago................ ....60690 Franklin J. Lunding Charles J. Scanlon Emerson G. Higdon 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 Harry M. Young, Jr. Donald L. Henry Memphis.......... ....38101 William L. Giles Eugene A. Leonard Minneapolis.......... ...55440 Robert F. Leach Hugh D. Galusha, Jr. David M. Lilly M. H. Strothman, Jr. Helena.............. ...59601 Edwin G. Koch Howard L. Knous Kansas City.......... ...64198 Dolph Simons George H. Clay Willard D. Hosford, Jr. 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 C. Robert McNally, Jr. Fredric W. Reed Houston.............. ...77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio.......78206 W.A. Belcher Carl H. Moore San Francisco........ ...94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles....... ...90054 Norman B. Houston Paul W. Cavan Portland.............. ...97208 Frank Anderson William M. Brown Salt Lake City......84110 Royden G. Derrick Arthur L. Price Seattle................. ...98124 William McGregor William R. Sandstrom Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 96 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Re­ serve System, Washington, D.C., 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic releases, see pp. A 94—A 97 of the Decem­ ber 1968 Bulletin. (Stamps and coupons not accepted) THE FEDERAL RESERVE SYSTEM—PURPOSES AND rency. 1963. 11 pp. $.35. Sec. 12. Money Rates FUNCTIONS. 1963. 298 pp. 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 BANKING MARKET STRUCTURE & PERFORMANCE or more of same issue sent to one address, $5.00 IN METROPOLITAN AREAS: A STATISTICAL per annum or $.50 each. Elsewhere, $7.00 per STUDY OF FACTORS AFFECTING RATES ON annum or $.70 a copy. BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or FEDERAL RESERVE CHART BOOK ON FINANCIAL more sent to one address, $.40 each. AND BUSINESS STATISTICS. Monthly. Annual FARM DEBT. Data from the 1960 Sample Survey subscription includes one issue of Historical of Agriculture. 1964. 221 pp. $1.00 a copy; 10 Chart Book. $6.00 per annum or $.60 a copy in or more sent to one address, $.85 each. the United States and the countries listed above; MERCHANT AND DEALER CREDIT IN AGRICUL­ 10 or more of same issue sent to one address, TURE. 1966. 109 pp. $1.00 a copy; 10 or more $.50 each. Elsewhere, $7.00 per annum or $.70 sent to one address, $.85 each. a copy. MONETARY THEORY AND POLICY: A BIBLIOGRA­ HISTORICAL CHART BOOK. Issued annually in Sept. PHY. Part I—Domestic Aspects. 137 pp. $1.00 Subscription to monthly chart book includes a copy; 10 or more sent to one address, $.85 one issue. $.60 a copy in the United States and each. countries listed above; 10 or more sent to one REGULATIONS OF THE BOARD OF GOVERNORS OF address, $.50 each. Elsewhere, $.70 a copy. THE FEDERAL RESERVE SYSTEM. FLOW OF FUNDS IN THE UNITED STATES, 1939­ RULES OF ORGANIZATION AND PROCEDURE­ 53. 1955. 390 pp. $2.75. BOARD OF GOVERNORS OF THE FEDERAL RE­ DEBITS AND CLEARING STATISTICS AND THEIR SERVE SYSTEM. 1967. 16 pp. USE. 1959. 144 pp. $1.00 a copy; 10 or more PUBLISHED INTERPRETATIONS OF THE BOARD OF sent to one address, $.85 each. GOVERNORS, as of Dec. 31, 1968. $2.50. THE FEDERAL FUNDS MARKET. 1959. Ill pp. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 $1.00 a copy; 10 or more sent to one address, $.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 BANK CREDIT-CARD AND CHECK-CREDIT PLANS. pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. July 1968. 102 pp. $1.00 a copy; 10 or more $.35. Sec. 9. Federal Reserve Banks. 1965. 36 sent to one address, $.85 each. pp. $.35. Sec. 10. Member Bank Reserves and INTEREST RATE EXPECTATIONS: TESTS ON YIELD Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ SPREADS AMONG SHORT-TERM GOVERNMENT Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 97 SECURITIES. 1968. 83 pp. $.50 a copy; 10 or THE LAGS BETWEEN INVESTMENT DECISIONS AND more sent to one address, $.40 each. THEIR CAUSES, by Shirley Almon. Feb. 1968. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. A DISAGGREGATED MODEL OF THE U.S. BALANCE 321 pp. $1.00 a copy; 10 or more sent to one OF TRADE, by William H. Branson. May 1968. address, $.85 each. THE LABOR MARKET AND POTENTIAL OUTPUT OF REAPPRAISAL OF THE FEDERAL RESERVE DIS­ THE FEDERAL RESERVE-MIT ECONOMETRIC COUNT MECHANISM: MODEL: A PRELIMINARY REPORT, by A. J. Telia REPORT OF A SYSTEM COMMITTEE, 1968, 23 pp. and P. A. Tinsley. Aug. 1968. $.25 a copy; 10 or more sent to one address, THE REGULATION OF SHORT-TERM CAPITAL MOVE­ $.20 each. MENTS: WESTERN EUROPEAN TECHNIQUES IN REPORT ON RESEARCH UNDERTAKEN IN CON­ THE 1960’s, by Rodney H. Mills, Jr. Sept. 1968. NECTION WITH A SYSTEM STUDY. 1968. 47 A TECHNIQUE FOR FORECASTING DEFENSE EX­ pp. $.25 a copy; 10 or more sent to one PENDITURES, by Harvey Galper and Edward address, $.20 each. Gramlich, Oct. 1968. Limited supply of the following papers relating to the Discount Study, in mimeographed or similar CHANGES IN BANK OWNERSHIP: THE IMPACT ON form, available upon request for single copies: OPERATING PERFORMANCE, by Paul F. Jessup, EVOLUTION OF THE ROLE AND FUNCTIONING Apr. 1969. OF THE DISCOUNT MECHANISM. 1968. 65 pp. Printed in full in the Bulletin. A STUDY OF THE MARKET FOR FEDERAL FUNDS. (Reprints available as shown in following list.) 1968.47 pp. 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. H 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. 16 pp. INTEREST RATES AND MONETARY POLICY, Staff A REVIEW OF RECENT ACADEMIC LITERATURE Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. ON THE DISCOUNT MECHANISM. 1968. RECENT CHANGES IN LIQUIDITY, Staff Paper by 40 pp. Daniel H. Brill. June 1963. 10 pp. DISCOUNT POLICY AND BANK SUPERVISION. MEASURES OF MEMBER BANK RESERVES. July 1968. 72 pp. 1963. 14 pp. STAFF ECONOMIC STUDIES MEASURING AND ANALYZING ECONOMIC GROWTH, Studies and papers on economic and financial sub­ Staff Paper by Clayton Gehman. Aug. 1963. jects that are of general interest in the field of 14 pp. economic research. 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. H PP- INTEREST RATES AND THE DEMAND FOR CON­ YIELD DIFFERENTIALS IN TREASURY BILLS, 1959­ SUMER DURABLE GOODS, by Michael J. Ham­ 64, Staff Paper by Samuel I. Katz. Oct. 1964. burger. Dec. 1967. 20 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BULLETIN □ APRIL 1969 REVISION OF BANK DEBITS AND DEPOSIT TURN­ U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN OVER SERIES. Mar. 1965. 4 pp. 1960-67. Apr. 1968. 23 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff QUARTERLY SURVEY OF CHANGES IN BANK LEND­ Economic Study by Lyle E. Gramley and Sam­ ING PRACTICES. Apr. 1968. 6 pp. uel B. Chase, Jr. Oct. 1965. 25 pp. RECENT CAPITAL MARKET DEVELOPMENTS. May CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ 1968. 11 pp. ING WORLD, Staff Paper by Frank R. Garfield. BANKING AND MONETARY STATISTICS, 1967. Nov. 1965. 15 pp. Selected series of banking and monetary statis­ RESEARCH ON BANKING STRUCTURE AND PER­ tics for 1967 only. Mar. and May 1968. 20 pp. FORMANCE, Staff Economic Study by Tynan CONSUMER INSTALMENT CREDIT. June 1968. Smith. Apr. 1966. 11 pp. 13 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic MARGIN ACCOUNT CREDIT. June 1968. 12 pp. Study by James Pierce. Aug. 1966. 9 pp. REVISION OF MONEY SUPPLY SERIES. June 1968. TOWARD UNDERSTANDING OF THE WHOLE DE­ 6 PP- VELOPING ECONOMIC SITUATION, Staff Eco­ RECENT MONETARY AND CREDIT DEVELOP­ nomic Study by Frank R. Garfield. Nov. 1966. MENTS. July 1968. 11 pp. 14 pp. MONETARY RESTRAINT AND BORROWING AND A REVISED INDEX OF MANUFACTURING CAPACITY, CAPITAL SPENDING BY LARGE STATE AND Staff Economic Study by Frank de Leeuw with LOCAL GOVERNMENTS IN 1966. July 1968. Frank E. Hopkins and Michael D. Sherman. 30 pp. Nov. 1966. 11 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. THE ROLE OF FINANCIAL INTERMEDIARIES IN 4 pp. U.S. CAPITAL MARKETS, Staff Economic Study FEDERAL FISCAL POLICY IN THE 1960’s. Sept. by Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. 14 pp. ’ 1968. 18 pp. HOW DOES MONETARY POLICY AFFECT THE REVISED SERIES ON COMMERCIAL AND INDUS­ ECONOMY? Staff Economic Study by Maurice TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. Mann. Oct. 1968. 12 nn. AUTO LOAN CHARACTERISTICS AT MAJOR SALES BUSINESS FINANCING BY BUSINESS FINANCE FINANCE COMPANIES. Feb. 1967. 5 pp. COMPANIES. Oct. 1968. 13 pp. CONSUMER INSTALMENT CREDIT. Mar. 1967. 12 ECONOMIC UPSWING IN WESTERN EUROPE. Nov. PP- 1968. 17 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. MANUFACTURING CAPACITY: A COMPARISON OF 1967. 26 pp. TWO SOURCES OF INFORMATION, Staff Eco­ MONETARY POLICY AND ECONOMIC ACTIVITY: A nomic Study by Jared J. Enzler. Nov. 1968. POSTWAR REVIEW. May 1967. 22 pp. 5 PP- MONETARY POLICY AND THE RESIDENTIAL MORT­ FINANCIAL DEVELOPMENTS IN THE THIRD QUAR­ GAGE MARKET. May 1967. 13 pp. TER OF 1968. Nov. 1968. 5 pp. BANK FINANCING OF AGRICULTURE. June 1967. MONETARY RESTRAINT, BORROWING, AND CAP­ 23 pp. ITAL SPENDING BY SMALL LOCAL GOVERN­ EVIDENCE ON CONCENTRATION IN BANKING MENTS AND STATE COLLEGES IN 1966. Dec. MARKETS AND INTEREST RATES, Staff Eco­ 1968. 30 pp. nomic Study by Almarin Phillips. June 1967. REVISION OF CONSUMER CREDIT STATISTICS. 11 PP- Dec. 1968. 21 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 FINANCIAL DEVELOPMENTS IN THE FOURTH AND 1963. June 1967. 4 pp. QUARTER OF 1968. Feb. 1969. 9 pp. REVISED INDEXES OF MANUFACTURING CAPACITY CHANGES IN TIME AND SAVINGS DEPOSITS, AND CAPACITY UTILIZATION. July 1967. 3 pp. APRIL-OCTOBER 1968. Mar. 1969. 21 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON TREASURY AND FEDERAL RESERVE FOREIGN EX­ MEMBER BANKS. July 1967. 6 pp. CHANGE OPERATIONS. Mar. 1969. 18 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK HOUSING PRODUCTION AND FINANCE. Mar. 1969. UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. 7 pp. THE ECONOMIC PAUSE IN WESTERN EUROPE. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FI­ Oct. 1967. 17 pp. NANCIAL INSTITUTIONS. Apr. 1969. 9 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL, Staff Economic Study by Frank de RECENT TRENDS IN THE U.S. BALANCE OF PAY­ Leeuw and Edward Gramlich. Jan. 1968. 30 pp. MENTS. Apr. 1969. 18 pp. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. QUARTERLY SURVEY OF CHANGES IN BANK LEND­ 1968. 7 pp. ING PRACTICES. Apr. 1969. 5 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 99 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers’, 14, 31, 35 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment Arbitrage, 89 of personal loans, 23 Assets and liabilities (See also Foreign liab. & claims): Adjusted, and currency, 18 Banks, by classes, 19, 24, 26, 35 Banks, by classes, 11, 19, 25, 28, 35 Banks and the monetary system, 18 Federal Reserve Banks, 12, 83 Corporate, current, 47 Postal savings, 18 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Automobiles: Discount rates, 9, 88 Consumer instalment credit, 52, 53, 54 Discounts and advances by Reserve Banks, 4, 12, 15 Production index, 56, 57 Dividends, corporate, 46, 47 Dollar assets, foreign, 73, 78 Bankers’ balances, 25, 27 (See also Foreign liabilities and claims) Earnings and hours, manufacturing industries, 63 Banks and branches, number, by class and State, 91 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: Receipts and expenditures, 39 Liabilities of U.S. banks to their foreign branches, Treasurer’s balance, 38 29, 83 Federal funds, 8, 24 Number, by class and State, 92 Federal home loan banks, 37, 49 Business expenditures on new plant and equipment, 47 Federal Housing Administration, 48, 49, 50, 51 Business indexes, 60 Federal intermediate credit banks, 37 Business loans (See Commercial and industrial loans) Federal land banks, 37 Federal National Mortgage Assn., 37, 51 Capacity utilization, 60 Federal Reserve Banks: Capital accounts: Condition statement, 12 Banks, by classes, 19, 25, 29 U.S. Govt, securities held, 4, 12, 15, 40, 41 Federal Reserve Banks, 12 Federal Reserve credit, 4, 12, 15 Central banks, foreign, 86, 88 Federal Reserve notes, 12, 16 Certificates of deposit, 29 Federally sponsored credit agencies, 37 Coins, circulation, 16 Finance company paper, 31, 35 Commercial and industrial loans: Financial institutions, loans to, 24, 26 Commercial banks, 24 Float, 4 Weekly reporting banks, 26, 30 Flow of funds, 68 Commercial banks: Foreign currency operations, 12, 14, 73, 78 Assets and liabilities, 19, 24, 26 Foreign deposits in U.S. banks, 4, 12, 18, 25, 28, 83 Consumer loans held, by type, 53 Foreign exchange rates, 90 Deposits at, for payment of personal loans, 23 Foreign liabilities and claims: Number, by classes, 19, 91 Banks, 29, 74, 75, 77, 79, 81, 83 Real estate mortgages held, by type, 48 Nonbanking concerns, 84 Commercial paper, 31, 35 Foreign trade, 71 Condition statements (See Assets and liabilities) Construction, 60, 61 Gold: Consumer credit: Certificates, 12, 16 Instalment credit, 52, 53, 54, 55 Earmarked, 83 Noninstalment credit, by holder, 53 Net purchases by U.S., 72 Consumer price indexes, 60, 64 Production, 87 Consumption expenditures, 66, 67 Reserves of central banks and govts., 86 Corporations: Stock, 4, 18, 73 Sales, profits, taxes, and dividends, 46, 47 Government National Mortgage Association, 51 Security issues, 44, 45 Gross national product, 66, 67 Security yields and prices, 32, 33 Cost of living (See Consumer price indexes) Hours and earnings, manufacturing industries, 63 Currency and coin, 4, 10, 25 Housing starts, 61 Currency in circulation, 4, 16,17 Customer credit, stock market, 34 Income, national and personal, 66, 67 Debits to deposit accounts, 15 Industrial production index, 56, 60 Debt (See specific types of debt or securities) Instalment loans, 52, 53, 54, 55 Demand deposits: Insurance companies, 36, 40, 41, 49 Adjusted, banks and the monetary system, 18 Insured commercial banks, 21, 23, 24, 91 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 )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 29-A hguorht 4-A segap ot era secnerefeR( Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN □ APRIL 1969 )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 29-A hguorht 4-A segap ot era secnerefeR( 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, 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, 33, 48, 49, 50 International institutions, 72, 73, 86, 88 Retail credit, 52 Inventories, 66 Retail sales, 60 Investment companies, issues and assets, 45 Investments (See also specific types of investments): Sales finance companies, loans, 52, 53, 55 Banks, by classes, 19, 24, 27, 35 Saving: Commercial banks, 23 Flow of funds series, 68 Federal Reserve Banks, 12, 15 National income series, 67 Life insurance companies, 36 Savings and loan assns., 36, 41, 49 Savings and loan assns., 36 Savings deposits (See Time deposits) Savings institutions, principal assets, 35, 36 Labor force, 62 Securities (See also U.S. Govt, securities): Loans (See also specific types of loans): Federally sponsored agencies, 37 Banks, by classes, 19, 24, 26, 35 International transactions, 82, 83 Commercial banks, 19, 23, 24, 26, 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, 51 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, 91 Margin requirements, 10 Stock market credit, 34 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, 91 Tax receipts, Federal, 39 Reserve position, basic, 8 Time deposits, 11, 17, 18, 19, 25, 28 Reserve requirements, 10 Treasurer’s account balance, 38 Reserves and related items, 4, 17 Treasury cash, Treasury currency, 4, 16, 18 Mining, production index, 57, 60 Treasury deposits, 4, 12, 38 Money rates (See Interest rates) Money supply and related data, 17 Mutual funds (See Investment companies) Unemployment, 62 Mutual savings banks, 18, 19, 22, 35, 40, 41, 48, 91 U.S. balance of payments, 70 U.S. Govt, balances: Commercial bank holdings, 25, 28 National banks, 21, 23, 91 Consolidated condition statement, 18 National income, 66, 67 Member bank holdings, 17 National security expenditures, 39, 66 Treasury deposits at Federal Reserve Banks, 4, Nonmember banks, 21, 23, 24, 25, 91 12, 38 U.S. Govt, securities: Bank holdings, 18, 19, 24, 27, 35, 40, 41 Open market transactions, 14 Dealer transactions, positions, and financing, 42 Federal Reserve Bank holdings, 4, 12, 15, 40, 41 Payrolls, manufacturing, index, 60 Foreign and international holdings, 12, 78, 82, 83 Personal income, 67 International transactions, 78, 82 Postal Savings System, 18 New issues, gross proceeds, 44 Prices: Open market transactions, 14 _ Consumer and wholesale commodity, 60, 64 Outstanding, by type of security, 40, 41, 43 Security, 33 Ownership of, 40, 41 Production, 56, 60 Yields and prices, 32, 33, 89 Profits, corporate, 46, 47 United States notes, 16 Utilities, production index, 57, 60 Real estate loans: Banks, by classes, 24, 26, 35, 48 Veterans Administration, 48, 49, 50, 51 Delinquency rates on home mortgages, 50 Mortgage yields, 51 Weekly reporting banks, 26 Type of holder and property mortgaged, 48, 49, 50, 51 ' Reserve position, basic, member banks, 8 Yields (See Interest rates) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis