Federal Reserve Bulletin, 1969-06

FEDERAL RESERVE BULLETIN JUNE 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, EI 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 32 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 6 □ VOLUME 55 □ JUNE 1969 CONTENTS 461 Consumption and Saving Patterns Since Mid-1968 Staff Economic Study: 472 The Channels of Monetary Policy 492 Our Problem of Inflation 507 Statement to Congress 508 Record of Policy Actions of the Federal Open Market Committee 519 Law Department 562 Announcements 563 National Summary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 4 U.S. Statistics A 70 International Statistics A 92 Board of Governors and Staff A 93 Open Market Committee and Staff; Federal Advisory Council A 94 Federal Reserve Banks and Branches A 95 Federal Reserve Board Publications A 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

Consumption and Saving Patterns Since Mid-1968 IN THE FIRST HALF OF 1968, rising consumer expenditures had contributed to increasing pressures of aggregate demand on pro­ ductive resources. Hence it was hoped that the 10 per cent sur­ charge on personal income taxes, introduced last summer as part of a package of fiscal restraint, would have a dampening effect on the rise in consumption and prices, even though the immedi­ ate impact of the surcharge was expected to be blunted to some extent by an associated downward movement in the personal saving rate. The failure of the tax increase to restrain consumer spending as much and as soon as anticipated has been an impor­ tant feature of the economic situation into the first half of 1969. This failure resulted basically from an acceleration in outlays for business investment. Such outlays were much larger than had been expected last summer, and they contributed to aggregate demand both directly and through their effect on total personal income. Nevertheless, the tax increase, together with a boost in social security tax withholdings at the beginning of this year, has had a substantial impact on disposable income. Although increases in personal income were only moderately less than those before mid-1968, quarterly increases in the annual rate of disposable income since that date have averaged only a little more than half of the average for the half-year before the surcharge went into effect—$7.6 billion as compared with $13.4 billion. Given the realized level of income, had consumers maintained the relatively high saving rate of 7.3 per cent that prevailed Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN o JUNE 1969 during 1967 and early 1968, average quarterly increases in con­ sumer spending in the three most recent quarters probably would have declined to a level not in excess of $7 billion. But such a drop did not materialize. In fact, personal consumption expendi­ tures, while extremely erratic from quarter to quarter, have been unusually buoyant, with gains averaging nearly $10 billion per quarter. This strength in consumer spending has thus been made possible both by the continued large advances in personal income and by the anticipated decline in the ratio of personal saving to disposable income. Even though the decline in the saving rate blunted the impact of the tax increase, the tax increase still had an appreciable effect: without it, and given the realized rate of personal income and a saving rate at the high pre-tax level, in­ creases in consumption expenditures would have averaged a little over $12 billion, instead of $10 billion. INCOME AND Recent large increases in total personal income have reflected CONSUMPTION mainly the sizable gains in employment that occurred during 1968 and early 1969 and an accelerated rise in wage rates. Ex­ pansion in wage and salary payments has accounted for most of the over-all gain, but there have also been significant increases Current-dollar change from preceding quarter derived from Dept, of Commerce quarterly data at seasonally adjusted annual rates. Latest figures, change from fourth quarter 1^« to first quarter 1969. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSUMPTION AND SAVING PATTERNS 463 in property incomes and transfer payments. The peak quarterly increase in personal income of $17.5 billion was registered in the initial quarter of 1968. Although there has been a steady diminu­ tion in the rate of advance since then, this year’s first-quarter in­ crease still amounted to $13.5 billion. Higher personal taxes have removed a substantial share of the income gain from the stream of private spending and saving. Personal tax payments to the Federal Government, which had been running at an annual rate of $73.5 billion in the first half of 1968, jumped to a rate of $85.3 billion in the second half and rose further to $92.4 billion in the first quarter of 1969. While the bulk of these increases in Federal receipts from personal taxes represented payments on higher incomes, somewhat more than $6 billion of the increase from the rates of the first half of 1968 to the rates of the next three quarters was directly attributable to increased withholdings and quarterly declarations made neces­ sary by the surtax. As a result of higher taxes, the average quarterly rise in disposable personal income of $7.6 billion after mid-1968 was markedly less than the increases registered in the early part of 1968 and in other recent years. In percentage terms, the slackening of the pace was even more striking—1.3 per cent a quarter since mid-1968 as compared with quarterly averages of 2.4 per cent for the first half of 1968 and 1.9 per cent for the period from late 1965 to mid-1968. The growth in disposable income since the tax increase has been quite uneven—a pattern that has continued since early 1968. After relatively uniform quarterly increases that averaged $8.6 billion in 1967, gains rose sharply in the first half of last year as a result of the substantial increases in total personal income. The surtax was mainly responsible for bringing these advances down from the first-quarter high of $14.8 billion to a third-quarter low of $6.4 billion. In early 1969 the labor market remained tight, and personal income continued to advance substantially. However, a statutory increase in social security taxes on January 1 removed addi­ tional funds from the income flow to the private sector of the economy, and the growth in disposable income during the first quarter amounted to only $6.8 billion. With the exception of last year’s third quarter, this was the smallest quarterly gain since early 1966. While the tax increase changed the pattern of disposable in­ come considerably, consumption did not show so much of a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN □ JUNE 1969 break in movement at midyear as did disposable income. Average quarterly increases in personal consumption had risen to $12.9 billion in the first half of 1968, after quarterly increases that ranged between $5.2 billion and $9.4 billion during 1967; since the surcharge became effective, the average quarterly rate of increase has eased to about $10 billion. For 1968 as a whole, consumption was 8.5 per cent higher than in 1967. Increased sales of new cars provided a major impetus to the over-all rise of 13.6 per cent in expenditures for durable goods; combined sales of new domestic and foreign cars —mainly to consumers—reached a record total of 9.5 million units, up sharply from the pace in each of the two preceding years. Outlays for nondurable goods advanced 6.7 per cent— with the apparel group reporting a very large increase—and spending for services rose 8.4 per cent. There were marked variations from quarter to quarter in con­ sumer spending. These were associated with shifts in purchases of goods; consumer purchases of services showed little deviation from the established upward trend of recent years. The surge in consumer expenditures during the first quarter of 1968 was broadly based. Purchases of durable goods advanced nearly $5 billion, largely as a result of a rapid rebound in auto sales from the strike-slowed pace of late 1967. In addition, sales of furni­ ture and household durable goods—which had been sluggish in 1967 despite an improving level of housing starts—rose sharply as more new dwelling units became available for occupancy. Outlays for nondurable goods advanced more than $8 billion, with unusually large gains for food and clothing. The burst of strength in spending during early 1968 did not carry into the second quarter, but the pace accelerated again in the summer. In view of the dampening effect that higher tax with­ holdings, which began in July, had on the growth of disposable income, the sharp third-quarter pick-up of $13.2 billion in con­ sumption expenditures was not fully anticipated. To some extent the increase may have resulted from expectations of higher prices for consumer goods; most of the auto producers had indicated that prices would be raised when their 1969 models were placed on sale, and price boosts had been announced for the fall and winter lines of apparel. Sales of new cars rose to a peak annual rate of 10 million units in the third quarter, and outlays for other types of durable and semidurable goods also registered sizable gains. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSUMPTION AND SAVING PATTERNS 465 fn tlie fourth quarter, the rise in consumer spending was small, with virtually no change in purchases of goods. But spending showed renewed strength during the winter. The $J0.6 billion increase in personal consumption expenditures in the first quarter of 1969 was nearly double the small rise of the preceding quarter and reflected a stepped-up rate in spending for both durable and nondurable goods; outlays for services confirmed to increase at about the 1968 rate. Conmmer purchases of durable goods, which were unchanged in the fourth quarter of 1968, rose $1.7 billion in the first quarter of 1969. but the growth wm still considerably below the 1968 average. The dollar volume of sales of autos and parts showed little change, although dealer deliveries of new domestic cars fell to a seasonally adjusted annual rate of 8.4 million units, com­ pared with 8.8 million in the fourth quarter of 1968. Sales of foreign cars were depressed in early 1969 by inventory shortages resulting from the strike of longshoremen. SMALL RISE IN REAL With consumer price rises accelerating, only about one-half CONSUMPTION H t w of last year’s $41.6 billion growth in personal consumption ex­ penditures represented a gain in the real volume of goods and „ iConsumers’ REAL PURCHASES OF GOODS ilittle changed since mid-1968 while MM»rn^£9im^^iuaaeQ*»«»^M«^ke)iM0«tt«Mifi«»«Kmim»u«Rg«^^ PILLIONS 01 1958 DOLLARS ANNUAL RAHS NONDURABLE GOODS DURABLE GOODS Expenditures for SERVICES rise steadily SERVICES Depi. >>? Commerce tjiKuLtCy thrta. seasonally adiusicd. l.mcM n-jutus, thsi ouaru;' I9oC. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN a JUNE 1969 services acquired, Although the expansion in spending as meas­ ured in constant dollars exceeded the relative]}’ small advance in 1967, it was somewhat below the average annual increases for the 3-year period 1 964--66. As lias been true of current-dollar spending, quarterly changes in constant-dollar spending have been quits* irregular since early last year. The real volume of services purchased by consumers continues to show steady quarterly gains, but the pattern of spending for goods has been mixed. After increasing substan­ tially in each of the first three quarters of 1968. constant-dollar outlays for durable goods dipped a little in the fourth quarter, but more than regained the decline in early 1969, Outlays for non­ durable goods have moved up only slightly, on balance, since a sizable rise in the first quarter of 1968. Prices of nearly all consumer goods and .services have been rising at an accelerated, pace since last summer. Although the increases in the consumer price index in the first and second halves of 1968 were about equal, the rise for 1968 as a whole substantially exceeded the advances in 1966 and 1967. The most Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSUMPTION AND SAVING PATTERNS 467 rapid increases in prices, however, have occurred so far this year. Another measure of price changes in consumer markets—the implicit gross national product deflator for personal consump­ tion expenditures—has shown similar movement. As in other recent years, the rise in prices of services has ex­ ceeded the increases for consumer goods. Prices of many consumer services reflect to a large extent charges for labor. Increases in labor costs attributable to such factors as last year’s tight labor market and higher minimum wage rates were an important factor contributing to increased prices of services, although other ele­ ments such as mortgage rates also played a part. In real terms, about three-fifths of the rise in consumer expenditures for serv­ ices during 1968 was accounted for by price increases. Prices of foods and nonfood commodities increased about equally last year; rising prices of apparel contributed significantly to the advance in nonfood nondurable goods. Prices of durable goods showed relatively uniform increases until this year’s first quarter, when rapidly rising prices for used cars led to a sharp jump in the index. It should be noted, however, that in line with the GNP conceptual framework, only the dealer mark-up for used cars is included in consumer expenditures. DECLINE IN SAVING Throughout 1967 and the first half of last year, personal saving RATE ran a ]ittie below 7.5 per cent of disposable income, the highest rate for such a long period in nearly a decade. Consumer willingness to reduce this high rate cushioned the impact of the tax increase. With consumer spending remaining buoyant after enactment of the surtax last summer, the personal saving rate dropped to an average of 6.6 per cent in the final two quarters of 1968 and to 6.1 per cent in the first quarter of this year. In view of the sharply rising level of disposable income, the high saving rate prior to mid-1968 represented an unusually large dollar volume of saving and led to a considerable improve­ ment in the financial position of consumers. Consumer net sav­ ing in financial form (acquisitions of financial assets less net borrowing) reached a record $31.7 billion in 1967, receded to an annual rate of $29 billion in each of the first two quarters of 1968, and has declined sharply to a $20.3 billion rate since mid-1968. The large flows over most of this period were reflected in sizable acquisitions of financial assets—especially demand and savings deposits—and a relatively low, but generally rising, rate of incurrence of debt. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

468 FEDERAL. RESERVE BULLETIN n JUNE 1969 4 PERSONAL SAVING declines in recent quarters. . . <zsi3K£^tt^T«»?aacMM^^ .ivwtwasmMBiiBWiCKimwss^^ - e:c?®^w^m?bw%^ SHUCKS Of DOUGHS, mUAl RATU RATE OF SAVING has returned to about the 1961-65 average ' PER CENT There were significant shifts in the pattern of net saving be­ tween the first, half of I 968 anti the last half of the year. Despite a (leercase in the percentage rate of personal saving and in the dollar volume of total persona! saving after midyear, consumers managed almost to maintain their buying of financial assets at the first-hall' rale. with, the decline in saving beine reflected in sharp increases in borrowing. However, within the relatively stable total of financial asset acquisitions, (here were drastic shifts in composition. In the second half, large increases in holdings of demand and savings deposits by consumer; offset, a reduction in their holdings of U.S. Government securities and corporate stocks. .And in the first quarter of I 969 there was quite a different shift, with an unprecedented volume of consumer takings of State and local government securities. Since mid-1 968 there lias been a moderate increase. on aver­ age, in the rale of borrowing for both consumer and mortgage debt. Over the three-quarter period total liabilities of consumers rose at an annual rate of $.O billion; the largest increases.... averaging $38.3 billion.-were in the final two quarters of 1968. In comparison, such liabilities had increased by relatively modest amounts of about. $22 billion in each of the years I 966 and 1967 and at a $30.6 billion rate in the first half of the Just year. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CONSUMPTION AND SAVING PATTERNS 469 Mortgage debt. The market for single-family housing has been under considerable strain since housing starts fell sharply in 1966 under the pressure of tight credit conditions in the mortgage market. Consumer mortgage liabilities on 1- to 4-family dwelling units, which had increased at a $16 billion rate in both 1964 and 1965, when credit was readily available, dropped to $11.9 billion in 1966, when additional mortgage funds to finance new con­ struction and property turnover were quite limited, and even further to $10.4 billion in 1967 as the housing market recovery got under way only slowly. By the beginning of 1968, however, mortgage and housing markets had experienced substantial re­ coveries, and the net increase in consumer liabilities for mort­ gages was at an annual rate of about $15 billion in each quarter of 1968. This rate reflected not only increased takings of homes by consumers but also a sharp advance from the reduced levels of the two preceding years in the ratio of the increase in tnortgage debt to gross new investment in homes. Last year’s increased rate of incurrence of mortgage debt by consumers reflected the increased availability of funds for mort­ gage investments, an improved level of completions of new single-family homes and increased sales of both new and existing structures, and less consumer resistance to high mortgage interest rates and large downpayment requirements. In addition, rapidly rising prices for housing may have encouraged the re-entry of qualified buyers who had deferred purchases in expectation of lower mortgage interest rates. Consumer credit. Consumer buying has been bolstered by a considerable expansion in the use of consumer credit. Instalment and noninstalment credit taken together have increased at an annual rate of more than $12 billion since mid-1968, one-third more than the rate in the first half of that year and considerably more than double the average increase in the two preceding years; $9.5 billion of the increase since mid-1968 has been in instalment debt. The intensity of consumer demand for credit has been evident from the sharp rise in the ratio of instalment credit extensions to disposable personal income. Since mid-1968 this ratio has been at about 16.8 per cent, close to the peak in the second quarter of 1965. At this level it is half a percentage point higher than in the first half of 1968 and a full percentage point above the 1967 figure. Repayments of instalment credit obligations took 15 per cent of consumers’ disposable personal income last year, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN o JUNE 1969 5 I Extensions of INSTALMENT CREDIT have slowed this year. , . BIlllOXS 0' 0C:U*5 AXNJS; soo liltlc changed from the ratios of the two preceding years. In the lirsl quarter of this year the ratio rose, slightly to 15.2 per cent. Fluctuations in the use of instalment credit arc generally associated with shifts in purchases of consumer goods, especially automobiles. Personal consumption, expenditures for autos and parts rose markedly in the first and third quarters of 1968 after 2 years of little change, and spending for furniture and house­ hold equipment increased substantially but irregularly. Con­ sumers made extensive use of instalment credit to finance their stepped-up rate of auto purchases. In line, with new-cm sales, credit extensions advanced sharply in the first (quarter mid again in the third, but the rise slackened noticeably during November and December. Repayments, which generally reflect an averaging of past, extensions, increased moderately until the fourth quarter and then leveled off. Automobile credit outstanding rose at a S3 billion rale in the first half of 1908 and at a $3.8 billion rate in the second half: for the year as a whole the increase was the largest increase since 1965. Last year's rise m instalment credit outstanding for consumer goods other slum autos reached a record $2.5 billion, with the advance in the second half only a little larger than that in die first half. It appears that much of lam year's increase was asso­ ciated with the large gains in consumption expenditures for furni- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

consumption and saving patterns 471 Lure, color television sets, other household durable goods, and apparel. Moreover, use of instalment credit to finance purchases of cooly items such as mobile homes, boats, and camping trailers has expanded rapidly in recent years. The growth, in consumer credit slackened, in the first quarter of 1969. Instalment credit outstanding rose at a seasonally ad­ justed annual rate of $8.3 billion, as compared with gains aver­ aging $10.1 billion in the final two quarters of 1968. Smaller increases were reported in most major categories of consumer credit; the slower rise in auto credit reflected a decline in com­ bined sales of new and used cars during early 1969, which was partly offset by larger average notes and a higher proportion of new car stiles on credit. RECENT CONSUMER While the most significant developments in the consumer area MARKETS since mid-1968 have been the continuing fairly sizable increases in personal income, the decline in the saving rate, and the limited extent of the impact of the tax increase on consumer spending, there have been growing indications recently that con­ sumption. trends may be weakening. Some fundamental changes appear to be developing in con­ sumer markets, and these are contributing to a reducer! rate of real growth in the economy. Increases in noni’arm employment have moderated this spring, and I his has led to a considerable RETAIL SALES slowing of the rise in total personal income. Sales at retail stores continue io be uneven; despite intensive promotional efforts by dealers, sates of new domestic ears declined to a seasonally adjusted annual rate of 8.2 million units in March and April, although they rose again in May and in early June. In real terms, total retail sales have changed little during recent months and are only slightly above their level of a year earlier. With, the rate of personal saving now down to 6 per cent about the average for the 1961.65 period....future changes in spending are more likely to be closely related to changes in dis­ posable income. However, the ultimate course of consumer spending in the months ahead may be affected by the nature of congressional action on extension of the surcharge on personal incomes........................................................................................................O Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Staff Economic Study THE CHANNELS OF MONETARY POLICY A further report on the Federal Reserve-MIT econometric model Frank de Leeuw and Edward M. Gramlich—Staff, Board of Governors From time to time the Federal Reserve thors are responsible for the analyses and Bulletin publishes in full staff studies that conclusions set forth and the views ex­ are of general interest to the economics pro­ pressed are not necessarily those of the fession and others. Board of Governors, the Federal Reserve As in all staff economic studies, the au­ Banks, or members of their staffs. One of the most perplexing questions in evidence on the sensitivity of aggregate de­ macroeconomics is the importance of finan­ mand to exogenous monetary and fiscal cial variables in influencing the real econ­ forces. Historical evidence suggests that omy. Opinions on this question have varied such autonomous monetary forces as gold greatly from decade to decade, and still vary discoveries and reserve requirement deci­ from economist to economist. Whereas clas­ sions played an important role in such major sical economists felt that monetary forces economic swings as the inflation of 1900— were quite important—indeed the only long- 10, the Great Depression, and the con­ run determinant of the price level—the traction of 1936-37. These findings are standard Keynesian view during and after buttressed by the studies of Friedmanthe Great Depression tended to deempha­ Meiselman, the staff of the Federal Reserve size the role of money. The period since Bank of St. Louis, and others who find World War II has seen a definite revival of monetary variables to be much more im­ interest in monetary phenomena, but this portant than fiscal variables in explaining revival has by no means generated a con­ subsequent movements in gross national sensus on the importance of money in influ­ product. On the other hand, the evidence encing economic activity. from several of the large econometric mod­ A basic reason for differences of opinion els—the Wharton School model, the Com­ on the importance of money has been the merce Department model, the Michigan difficulty in obtaining convincing empirical model, and to a lesser extent the Brookings model—is that monetary forces are rather Note.—Since completion of this paper, Mr. de Leeuw has left the staff of the Board. unimportant in influencing total demand. While the authors take full responsibility for state­ Behind different assessments of the role of ments in this staff study, they stress that credit for the monetary factors lie differences of opinion ideas it contains belongs to the entire Federal Reserve- MIT group of which they are only two members. regarding the number and significance of Franco Modigliani, Albert Ando, Charles Bischoff, the channels through which monetary forces George de Menil, Dwight Jaffee, and Enid Miller have made especially important contributions to the results operate. Many econometric models include reported here; many others have made important con­ only one channel: namely, the effects of fitributions to other aspects of the model. 472 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

nancial yields on the opportunity cost of accelerator mechanism—and we will touch holding durable goods and structures, with on these points to only a minor extent.1 An the cost in turn influencing tangible invest­ Appendix—available on request in mimeo­ ment. Even within this one channel there is graphed form—gives a current listing of the room for a wide range of empirical esti­ model along with mention of the equations mates of the strength of the forces at work, which have been altered since our earlier and further research is still urgently needed. report.2 At the same time, however, the possibility The paper first sets out the theoretical and should be investigated that the conflict stems institutional bases for the three channels of partly from the existence of other channels monetary policy currently represented in the through which monetary forces work, chan­ model. Cost-of-capital influences constitute nels which have been either inadequately one channel, affecting single- and multifam­ treated or completely ignored in previous ily housing, plant and equipment, State and econometric work. local construction, and investment in con­ The Federal Reserve.—MIT econometric sumer durable goods. The transmission of model project attempted to examine these rates of return on bonds to the value of ideas. The aim was to build a model which, wealth held in the form of equities consti­ though not necessarily larger than most tutes a second channel, one that affects house­ other existing models, would focus more hold net worth and consumption. Finally, intensively on monetary forces and how they credit rationing constitutes a third channel affect the economy. The format of an econo­ which we have so far found to be important metric model was chosen because it seemed only in the housing market. As yet, we have to be the best way to take advantage of found that neither the cost of capital nor recent work in areas such as household and credit rationing is important for inventory producer behavior, financial behavior, and investment, though we have tested these price-wage determination; of recent econo­ possibilities extensively. metric advances in techniques for dealing Next the paper presents estimates of the with distributed lags, autocorrelation, and quantitative importance of each channel. constraints on parameters; and of advances Simulation of different groups of equations in computer technology that make possible of the model and of the full model under rapid estimation and solution of large non­ varying sets of initial conditions illustrates linear systems. It was also felt that only direct effects and complete-system effects of through a model could one surmount prob­ monetary policy alone and in comparison lems involving the large number of exoge­ with fiscal policy. The results of these sim­ nous monetary and fiscal variables, variable ulations are still subject to large uncer­ policy multipliers and time lags, and other tainties, and we will make changes as work difficulties which the one-equation approach on the model continues. For what they are to explaining GNP necessarily oversimpli­ worth, however, the current results imply fies or ignores. 1- or 2-year fiscal policy effects that are This article concentrates on the channels roughly comparable to results for other through which monetary forces influence models and monetary policy effects that are the real economy. Previous reports have ‘See [6], [11], [14], and [2], dealt with other aspects of the model—its “Requests should be addressed to: Publications Services, Division of Administrative Services, Board of over-all structure, its theoretical innova­ Governors of the Federal Reserve System, Washington, tions, the characteristics of its multiplier­ D.C. 20551. 473 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN □ JUNE 1969 appreciably larger than results for other somewhat longer lag than fiscal variables, models though smaller than what a simple and both monetary and fiscal multipliers quantity theory of money would imply. Fi­ vary depending on the initial state of the nancial variables are seen to operate with a economy. I. THE CHANNELS OF MONETARY POLICY The three channels of monetary policy rep­ simple approximations to the formula for resented in the model are as follows: State and local construction spending and investment in consumer durable goods. In THE COST OF CAPITAL each case, of course, differences in tax A general formula showing the conditions rates, depreciation rates, and other varia­ under which a potential investor would be bles in the formula, as well as differences in indifferent about renting or buying a capital data availability, make things work out good is somewhat differently. PH (L-vt) In each case we allow for uncertainty and (A.l) ------------= 7J (l-wt)+K (1-zt) delayed reactions by adding a risk discount P (1-u) + TP (\-yt)-G (l-zt) in the derivation of /?, by allowing for flex­ where PR = rental price (explicit or implicit) of a unit ible distributed lags in the equating of costs of capital services; /J~ price of the capital equipment; D = physical rate of depreciation; and returns, and by allowing for separate /f=the appropriate rate of interest, or time lags—and hence separate mechanisms discount; TP = property tax rate; G = expected rate of capital gains; Z = the income tax rate; through which expectations are formed— u = the rate of investment credit; 11, z= pro­ portions of PR and G which are taxable; and for the different important variables in equa­ w, z, y = proportions of D, R, and TP which tion A.l. The extensive use of flexible lag can be deducted from taxable income. distributions is also important from another standpoint; in the absence of good empirical This equation, from Jorgenson,3 shows that proxies for such difficult-to-measure phe­ the gross rate of return on an investment nomena as credit rationing and postpone­ should cover its physical depreciation plus ment effects, examination of the lag pattern an appropriate interest rate plus the rate of can convey at least some information on taxation on gross value less expected capi­ how different categories of spending react to tal gains, with all terms adjusted for income monetary effects. If postponement effects tax treatment. In a world of profit-maximiz­ and credit rationing are important, or if ex­ ing investors and competitive capital mar­ pectations are regressive, the response to a kets, the expression for the rental price change in interest rates will be shifted to­ implied by equation A. 1 determines the way ward the beginning, whereas the reverse is in which interest rates would interact with true jf expectations are extrapolative. prices of capital goods and tax rates to affect Producers’ investment. The model as­ investment decisions. sumes that producers take as exogenous We make use of this cost-of-capital for­ wage rates and variables that determine the mula for four categories of final demand: cost of capital. They set prices of their own equipment, plant, single-family housing, and products largely as an oligopolistic mark-up multifamily housing. In addition, we use on costs, and the prices of their products, in 3 Jorgenson [9], The Jorgenson formulation does not conjunction with other demand influences include property taxes or investment tax credits, but it is easily modified to take account of them. on the public, determine their sales. Plant Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 475 and equipment investment decisions—the costs cannot be deducted from taxable in­ subject of this section—are made so as to come. maximize expected future profits given prod­ The final expression for the implicit rent uct prices, the cost of capital, and expected for new equipment is: future output. Ppd (.01 &+.16) (1-!.Z,-Zt) Equipment. The equations for produc­ (A.2) PQS ----------------------------------------- 1-tc ers’ durable equipment expenditures are taken from the work of Charles Bischoff [4]. The entire interest-rate term (that is, R Equation A.l is solved for the implicit (1 — xt) in equation A.l) is estimated as quasi-rent which is substituted into a pro­ (A.3) ^ = (1-.2i„) (-1.30+.629«CB/+.216ftj3) duction function to give the optimal, or cost-minimizing, capital/output ratio for where P^b “implicit quasi-rent for equipment {PR in equation A.l); Ppo = price deflator, producers’ new capacity. The capital/output ratio and durable equipment {P in equation A.l); Zk = rate of investment tax credit (u in equation output itself are then combined to deter­ A.l); tc = corporate tax rate {t in equation A.l); mine the demand for new orders, with the 0.16“estimated rate of depreciation (D in equation A.l); Zc“ present value of deprecia­ lag patterns differing for the two variables tion deduction (approximately wD because producers’ equipment is found to ---------------------); be substitutable for other factors of pro­ D+(l-ut)(fi) 0.2“average debt-asset ratio for corporations duction before but not after the order is {x in equation A.l); RcBi=industrial bond rate, percentage; Rn = dividend-price ratio on placed. The final step in this process ex­ common stock, percentage. plains current equipment expenditures as a result of current and past orders, with In the equation for new orders for equip­ high backlogs of orders postponing the lag. ment (equation 28 in the Appendix), this In the derivation of the implicit rent rele­ expression appears with a long distributed vant to equipment investment decisions, lag. In part, the lag represents the fact that terms such as the asset price, tax rates, and rapid additions to the stock of equipment the rate of investment credit can be taken tend to be much more costly than gradual directly from available data. The TP and G additions. In part, the lag is believed to rep­ terms are ignored, though there is some resent the “putty-clay” nature of equipment allowance for capital gains in that R is as­ investment; that is, the apparent fact that sumed to be a linear function of a monetary it is much more costly to change the capital interest rate and the stock market yield, with intensity of equipment once it has been in­ the relative weights determined empirically stalled than to choose the desired degree of by the investment function. An important capital intensity of newly ordered equip­ role for capital gains would be reflected in a ment. As Bischoff explains, a putty^clay high weight for the stock market yield, model implies a much slower response of which is a better approximation to a real investment to changes in the cost of capital (inflation-adjusted) interest rate, but in fact —much of the response occurring only as Bischoff did not find this to be true for pro­ old equipment wears out—than it does to ducers’ equipment. Since all returns from changes in output. producers’ equipment are taxable, v is unity, Structures. The general framework but w is greater than 1 because of accel­ of the relationships for producers’ structures erated depreciation, and x is less than 1 be­ is similar to those for producers’ durables. cause most investment is financed out of in­ Again equation A.l is solved for the im­ ternal funds where interest opportunity plicit quasi-rent, which is again substituted Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN □ JUNE 1969 into the production function to give the op­ be manned by a fixed amount of labor as timal capital/output ratio. Since there are machines are—but the difference could also no readily usable statistics on orders for be due to the fact that a producer can more structures, the equations are fit directly for readily sell a structure and reinvest at the investment expenditures without going new desired capital/output ratio than he through the intermediate stage of orders. can sell a specialized piece of equipment. In any event, net investment in structures, For structures, the manipulation of equa­ in contrast to equipment, has similar lags tion A.l is exactly the same as for equip­ for output and for the cost of capital, re­ ment except that the rate of investment sponding to both only so long as the capital credit is absent because the investment stock is out of equilibrium. credit does not apply. The specific expres­ Residential construction. In the residen­ sion for the implicit quasi-rent is tial construction market we depart from one PPS (.01 Bs+.06) (1-LZs) of our general assumptions about business (A.4) PQS =---------------------------------- (l-t<) behavior. As noted earlier, we have assumed where that, because of oligopolistic market struc­ (A.5) Bs = (1 - .21c) (-1.833 + ,026«cw +. 726KD) Fes = price deflator, producers’ structures; tures, business output prices are a mark-up 0.06= estimated rate of depreciation; and Zs = present value of depreciation deduction. on costs and are not directly determined by rates of return on other assets. For residen­ We notice that here the physical rate of tial structures, there is very active trading depreciation is lower than for equipment by owners in the existing asset stock and and, interestingly, that the stock market rate there are a great many small producers. of return is estimated to be much more im­ Consequently, the housing equations incor­ portant than the monetary interest rate. The porate the notion that asset prices (P in importance of the stock market either could equation A.l) respond directly to rates of reflect the fact that waves of optimism and return on other assets. Changes in income pessimism—which strongly influence the and population may also affect prices stock market—are more important for through their effect on implicit or explicit structures than for equipment or could im­ rents. ply that the real interest rates—which are From this difference in price behavior more closely approximated by stock yields there follows a difference in the way we view than by bond yields—are more important. investment behavior in equipment and plant Perhaps the higher past rate of price in­ on the one hand and in housing on the other. crease for structures than for equipment has Whereas shifts in demand and rates of return taught investors that it is more costly to on other assets affect investment by pro­ delay purchases if prices are rising. ducers directly, in the housing market these Estimation of the structures equation factors set up a disequilibrium between (equation 33 in the Appendix) suggested prices and costs which then indirectly stimu­ that producers’ structures seem to behave lates building. A construction boom in re­ according to a “putty-putty” model, where sponse to a rise in house prices will expand factor proportions are variable after as well the capital stock, which in turn will depress as before installation. Part of the difference rents and prices and eventually reduce con­ between structures and equipment in this struction back to its old level. respect can be explained by physical attri­ One- and two-family units. In the butes—structures are not generally built to actual empirical relationships for single- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 477 family housing—defined here as one- and Finally there are the adjustments of equa­ two-unit structures—we lack quarterly ob­ tion A.l for the effect of taxes: x and y are servations for both an implicit rental rate unity because the personal tax law allows and the asset price. We are therefore forced deduction of interest costs and property to fall back on a chain of theoretical as­ taxes, and v, w, and z are zero because im­ sumptions and algebraic manipulation be­ puted rent and capital gains generally are fore arriving at an equation we can estimate. not taxable and depreciation generally is We first assume that the rental rate is not deductible. determined by the market for single-unit Inserting this information in equation housing space. The demand for this space A.l gives depends on permanent income, population, and relative prices, while the supply is pro­ Pm portional to the actual single-unit stock. (A.7) 100------ -1.14 + (l-tA)(.7fiJ/+.3/ec+tp) Pm Equating demand and supply in per capita = Rm terms gives where P«( “implicit rental on single-family housing derived by solving equation A.6 for Pri; Phi = (A.6) implied asset price of single-family houses; Iz, = personal tax rate; tP = effective property tax rate, percentage5; Rm = mortgage rate, where /<«,« = real single-family housing stock; M = percentage; lie = corporate Aaa rate, percentage adult population (aged 25-65) expected to live (a proxy for the rate on own financing); 0.7, in single-family structures; 0^= total real 0.3 “appropriate weights for mortgage rate consumption, a proxy for permanent income*; and other rates based on average loan/value N = total population; Pri = implied price for ratios for new houses; —1.14 = 0 — 6'°; and single-family housing space; and A? = price Rm—cast of capital, single-family houses, deflator for personal consumption expenditures. percentage. Next, the implicit equilibrium asset price Finally, housing starts are taken to de­ for houses is found by using equation A.l. pend on the ratio of the asset price to hous­ The appropriate interest rate is a weighted ing construction costs. We substitute for the average of the mortgage rate and the cor­ asset price in this relationship by solving porate bond rate, with the weights deter­ equation A.7 for Pm—a process which re­ mined by the average mortgage/value ratio quires substituting for PBl from equation on new houses. Since purchase of a house A.6. Here starts in value terms are divided usually involves buying land, the rates of by a trend that approximates the capacity depreciation and capital gains are weighted of the economy, thus allowing a larger re­ averages of postwar rates on single-family sponse to the price ratio signal as the econ­ houses and on land. There is some indica­ omy grows larger. There is also an addi­ tion that using a constant postwar rate to tional credit rationing variable (to be dis­ measure expected capital gains fails to cap­ cussed under “Credit rationing”) which ture a shift in expectations in the 1960’s, measures the ease of obtaining mortgage and though the data for land prices are very fragmentary, we are currently attempting to 5 This rate was computed by dividing annual State and local property tax receipts by the estimated current improve this treatment of capital gains. dollar value of the housing stock plus land. “ The annual rates of depreciation are assumed to be 1 Our consumption variable includes estimates of the 2.7 per cent for houses and 0 for land. The annual ex­ value of services yielded by stocks of durable goods in­ pected rates of capital gains are assumed to be 1.6 per stead of expenditures on new durables. It is therefore cent for houses and 10 per cent for land. The composite related to a longer-run concept of income than would value for D—G was then computed by assigning the be the case for quarterly consumer spending. weights 0.8 for houses and 0.2 for land. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN □ JUNE 1969 financing. The housing starts relationship ditures from past housing starts, additions is thus and alterations, and the rate of depreciation. When the entire sector is put together, a change in either prices or income first changes the asset price, then housing starts, then the stock of housing. The change in the where HS\ =one- and two-unit housing starts times in stock of housing changes the rental space value terms; Pm = implicit housing price price, and hence the asset price, in a direc­ derived by solving equations A.7 and A.6; tion counter to the initial movement—thus Phc= price deflator for housing construction costs adjusted for productivity; D' = credit giving rise to a stock-adjustment mechanism rationing variable; Zi*er<li"">==real per capita capacity, single-family housing industry; and (a “putty-putty” model) in response to r = quarterly rate of growth of real per capita changes in both prices and income. capacity, taken to be 0.5 per cent per quarter (consistent with a growth in real full employ­ Three-or-more-family units. The mul­ ment GNP of 4 per cent per year). tifamily sector works in much the same way as the single-family sector except for differ­ In the estimation of equation A. 8 we fix ences due to institutional phenomena and the permanent income elasticity of demand available data series. There is, for example, for housing space (a,) to be unity in accord­ a published rental space index for multi­ ance with the results of other studies.7 We family housing, and an equation for this transpose the arbitrary constant to the right index can be estimated directly instead of side, where it is part of the regression’s con­ substituting for it in deriving the raultifamily stant term. Finally, since it is likely that pat­ housing starts equation 39 in the Appendix. terns of reaction and of expectations are en­ In addition, we have added a nonlinear trend tirely different for prices and interest rates, term to equation 39 to reflect a learning we allow separate flexible lags for rh1 and process which most experts consider to have Pc/Phc. The estimated lag distributions im­ been of great importance in the multifamily ply that adjustment to a change in interest housing boom of the early 1960’s. rates is very fast, indicating postponement The cost of capital for multiunit struc­ effects or regressive expectations; the adjust­ tures is derived in the same manner as for ment to a change in prices is delayed, indi­ single-family units. The interest-rate term is cating extrapolative expectations? again a weighted average of the mortgage The single-family housing sector is com­ rate and the corporate bond rate, with the pleted by an identity which explains the weight of the mortgage rate being higher be­ single-family stock and construction expencause the typical loan/value ratio is higher for multiunit structures. The estimated rate 7 See especially [13] and [15], of capital gains for multiunit structures is the “ By regressive expectations we mean that an ob­ same as for single-family structures, but the served change sets up expectations of a return back toward the old level. Expectations of this sort make it estimated rate of physical depreciation is advantageous to postpone purchases of a good when slightly smaller. The parameters x and y are the price goes up, in addition to any long-run response to the price change. The postponement effect therefore still equal to 1, as are v and z because rental makes the lag in response to a price change shorter income and capital gains for multiunits are than the long-run response lag alone. Extrapolative ex­ pectations, or expectations of a further change in the monetary and reportable, but w is greater same direction as the observed one, lead to a speeding than 1 because of accelerated depreciation. up of purchases in response to a price change—to The appropriate cost of capital expression avoid paying still higher prices later—and make the lag greater than the long-run response lag alone. for multiunit housing is then Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 479 Pia feet (discussed under “The wealth effect”), (A.9) 100 ----=-2.44 + .95 Jitr+.U5 Pc+tp = Pii3 Pm but the cost of capital also plays a role. Total where Rh:i = cost of capital, multifamily houses, per­ consumption, defined and crudely measured centage; Ph3 = implied asset price, multifamily houses; Pia = price deflator for apartment so as to include the consumption of services rental space, component of consumer price index; 0.95, 0.05 = appropriate weights for yielded by durable goods instead of expendi­ mortgages and other rates; and —2.44 = tures on these goods, is determined by cur­ /I —wl\ rent and lagged disposable income and by DI ------ |-G.’ \ 1-t / net worth. This consumption is then allo­ cated between nondurable goods and serv­ The multifamily housing starts equation is ices and consumption of the services of du­ of the form rable goods depending on population, the ini­ tial stock of durable goods, and the relative costs of durable and nondurable goods. This last term is the channel through which the opportunity cost of holding durable goods af­ fects consumer behavior. The consumption sector is closed by an identity relating con­ where the subscript “3” designates the appro­ sumption on durables to the initial stock and priate variable for the multiunit sector. It is to durable goods expenditures, which is the similar to equation A. 8 except for the logis­ quantity that (along with consumption of tic term which accounts for the growth in nondurables and services) is included in multiunit starts in the 1960’s. The value of GNP. Since a change in either prices or in­ ds was chosen to place this growth as nearly comes first alters expenditures on durable as possible in the early 1960’s. As before, goods, then the stock, and this stock dampens separate lags were estimated for the cost of future expenditures, consumer durables too capital and the price ratio, and these lags follow a stock-adjustment mechanism in again show regressive expectations for inter­ response to changes in both prices and in­ est rates and extrapolative expectations for comes. prices. To represent the relative cost term for Just as in the single-unit housing sector, consumer durable goods we use a linear the starts determined in equation A. 10 enter function of the relative price and past in­ the capital stock. An increase in the stock terest rates on corporate bonds. We ignore reduces the rental price—the equation is not capital gains, property taxes, personal in­ shown here—and therefore depresses both come taxes, and depreciation rates—the the implicit price and the housing invest­ last two on the ground that the imputed ment, implying the same kind of stock­ rent on consumer durables is nontaxable adjustment mechanism as for single-family and depreciation expenses are nondeduct­ housing. ible. The distributed lag of corporate bond Consumption. Financial conditions affect rates serves as a proxy for unobserved rates consumption mainly through the wealth ef- and other credit terms on consumer instal­ ment contracts. ” The D and G terms were computed exactly as in The allocation of total consumption is footnote 8, except that the annual rate of depreciation of multiunit structures was taken to be 2.0 per cent. thus equation A. 11 on the next page. The tax rate t was equal to a weighted average of per­ sonal and corporate rates (about .33), and w was In accordance with the identity that cTr assumed equal to 2. equals the sum of its parts, equation A. 11 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

480 FEDERAL RESERVE BULLETIN □ JUNE 1969 (A.ll) Cur penditures affect the capital stock, hence Ctr generating the back pressure which even­ Car tually shuts off the expenditure response to = AZ Ctr a stimulus.10 CdR The property tax term in equation A.l . Ctr . can be ignored because we would hardly where Cnr = real consumption of nondurable goods expect State and local governments to tax and services, annual rates; Car = real implied consumption, autos and parts, annual rates; their own structures. For similar reasons, Cdr = real implied consumption, other dur­ v, w, x, y, and z are all zero—the Federal able goods, annual rates; Ctr = total real con­ sumption, by definition equal to Cnr + Car + Government neither taxes States and local Cdr', A = a 3 X 6 matrix of coefficients; Z = governments nor allows tax deductions. The a 6 X 1 matrix of allocating variables which includes (a) 1 (to give the constant); (b) (Re}, interest-rate term is measured by the rate on in distributed lag form; (c) Pcn/Pcd (Pen is the price deflator for nondurable goods and State and local bonds, and the rate of depre­ services and Pcd is the price deflator for ciation is assumed to be a constant. Capital durable goods); (d) Kar/Ctr (Kar is the start-of-period real stock of autos); (e) K^r/ gains are measured by a long distributed lag Ctr (Kdr is the start-of-period real stock of other durables); and (f) N/Ctr- on past rates of change of the State and local price deflator; these governments seldom re­ was estimated so that the sum of the three alize capital gains, but the expected rate of constants (an + a2J 4- a31) is unity, but the price increase is nevertheless important for sum of all other columns of coefficients State and local construction because it meas­ is zero. This means that if a change in, say, ures the cost of postponing construction. relative prices affects the consumption of The appropriate expression for the cost of nondurables in one way, it affects the con­ capital under these conditions is: sumption of durables in an exactly offsetting way; thus total consumption remains un­ A Prl changed. Since the signs in equation A. 11 (A.12) PrS = PSL D + RSL - 100 PSL were all as expected, a rise either in the rela­ where Prs = implicit quasi-rent, State and local tive price of durables or in interest rates structures; Psi = price deflator, State and permanently reduces the consumption of local purchases; Rsr = State and local bond / KPsl V durable goods, resulting in a magnified tem­ rate, percentage; and I I = expected \ P.SL / porary drop in expenditures on durable rate of change in Psi.goods and permanently increases the con­ sumption of nondurable goods and services. Dividing through by the price of all goods to State and local government expenditures. get the relative price for States and localities The remaining way in which the cost of and approximating ( ^p^'^ by a distributed capital goods affects final demand is through the construction expenditures of State and lag on past rates of change of pSl , we get equation A. 13 local governments. The capital stock that these governments wish to hold is assumed to be a function of relative prices, interest “Other State and local expenditures, which are rates, output, and demographic variables. mainly wage payments but also include purchases of nondurable goods and transfer payments, are explained Construction expenditures then depend upon by a different mechanism. These other expenditures the relation of actual and desired capital are assumed to behave more like consumption goods than investment goods, and the latest versions of these stock, together with the matching grants-inequations find the interest-rate effect to be quite un­ aid of the Federal Government. These ex­ important. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 481 (A. 13) PRS PSL to consume this income will be reasonably D -|- Rsl Py Py high, but it will be less than unity because ^Psl \ of the need to save for retirement years. At - 100 X Wi PSL J the same time, since net worth at any point where Py = GNP deflator. in time is an addition to the consumers’ re­ Because the deflator for State and local sources, it will have a positive coefficient, purchases is heavily influenced by State and but the coefficient will be small because net local wage rates, which could introduce an worth is an exhaustible stock and consump­ irrelevant trend into the response to interest tion out of this stock must be spread over rates and expected price changes, we decom­ many years. pose the right side into one term in pSl/Py, The life-cycle hypothesis leads to a con­ one in rSl, and one in . The construe- sumption function in which total consump­ tion as defined earlier in “The cost of capi­ tion equation 55 in the Appendix uses these tal” depends on current and lagged dispos­ variables, all fitted with separate lags, along able labor income and net worth. In the with income, demographic variables, match­ model we use a transformation to substitute ing grants, and capital stock. It turns out that the lag on the interest rate is quite short, total disposable income for labor income to avoid the difficulty of allocating national indicating that postponement effects are pre­ accounts’ disposable income between its la­ dominant, whereas the lag on price changes bor and noniabor components. The lag for is very long. Coefficients indicate that a 1 disposable income is due to the fact that it per cent change in the annual rate of infla­ takes consumers time to change expecta­ tion has about half the effect of a 1 per cent tions about future income. For our pur­ change in the rate of interest. poses the important point is that net worth THE WEALTH EFFECT is defined to include capital gains along The second channel of monetary policy is with accumulation due to past saving, and through the net worth of consumers. There in the U.S. economy the predominant are two key relationships here: the link be­ source of capital gains has been the stock tween household net worth—of which one market. Although the marginal propensity component is the value of common stock to consume out of net worth is quite small equities—and consumption; and the link be­ —less than 0.04 in the consumption func­ tween financial rates of return and the stock tion we are presently using—since con­ market rate of return, and hence the value sumption is so important in total final ex­ of equities. penditures, even this response is large The link between household net worth enough for stock market swings to have an and consumption has a long tradition in important effect on the economy. macroeconomics, culminating in the life­ The value of equities in consumer net cycle hypothesis as formulated by Modig­ worth which determines capital gains in the liani, Brumberg, and Ando [3] and [5], The stock market follows from the capitalization basic idea is that consumers allocate con­ identity sumption over their entire lifetime, given / Ycd \ initial net worth, a rate of time preference, ST = 100 ( ------ ) and expectations regarding labor income. where ST = value of commo \ n R st d o c J k in net worth; Since labor income is a recurring flow during Ycd = corporate dividend payments; and Rd = dividend-price ratio on common stock, a consumer’s working years, the propensity percentage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

482 FEDERAL RESERVE BULLETIN □ JUNE 1969 Dividend payments are determined by cur­ tried without success a similar long distrib­ rent and lagged corporate cash flows through uted lag on past rates of change of dividends a model similar to Lintner’s [10], thus leav­ (both gross and per share). The best results ing the dividend-price ratio as the vehicle substitute a downward time trend for the through which monetary forces influence combination of expected change in stock equity values. prices and risk premium—since apparently The theory behind determination of the the riskiness in holding equities is adjudged rate of return in the stock market is similar to be a good deal less now than in the early to the theory developed above for deriving postwar period—along with a dummy(Z)Gsri the rate of return on tangible assets. Since for the 1962 crisis of confidence in the stock equities are a substitute for bonds, changes market. The stock market equation is thus in the long-term bond rate change the rate of the form at which the stock market capitalizes divi­ / tiPc \ dend payments and hence the value of equi­ (B.2) Rd = atRc ~ at Z w; I ----- J 1 \ Pc /-. ties in net worth. In equilibrium we would — a3 (time) 4- a, DU sr + as expect the total rate of return on common stocks, which equals the dividend-price ratio The steady-state coefficient for the past an­ plus the expected rate of growth of stock nual percentage rates of consumer price prices, to equal the interest rate plus a risk change should be 1 but is only 0.10. The premium. Inflation can be viewed either as average lag on rc is 2.3 quarters and on past something that leads to larger expected rate price changes is seven quarters. This result of growth of stock prices given interest rates, is similar to that obtained in the housing and or as meaning that the total rate of return State and local construction equations, where on stocks should equal a real interest rate interest-rate changes seem to be accepted as plus a risk premium. If we adopt the latter permanent much sooner than changes in the convention, we can write rate of price increase. The time trend is con­ structed so that the downward drift in the / ^Pc V (B.l) R» + O' = Re- 100 ( ----- ) + T dividend-price ratio is substantially over by \ Pc ) the late 1960’s. where /in = dividend-price ratio, common stock, per­ centage; G« = measure of expected change in One implication of this group of equations stock prices; /?c = corporate bond rate, per­ is that a change in interest rates changes the centage; (APc/PcY = expected rate of change of the price deflator for consumption expendi­ dividend-price ratio, changes the valuation tures; and ir = risk premium. of equities and net worth, and is responsible In something as volatile as the stock mar­ for a permanent change in consumption ex­ ket, it is not easy to measure either the risk penditures for both durable and nondurable premium or the expected rate of change of goods and services. A further implication is prices. For the expected rate of change of that some of the difficulty in predicting per­ consumer prices we have had some luck with sonal saving rates can be attributed to diffi­ a long distributed lag on past rates of change culties in predicting stock prices. of consumer prices, though the long-run ef­ fect of this variable is only 10 per cent of CREDIT RATIONING what we would expect if real interest rates A third channel of monetary policy is credit were the appropriate measure of the oppor­ rationing. We use credit rationing to refer to tunity cost of holding equities. For the ex­ the failure of interest rates on loans to adjust pected rate of change of stock prices, we rapidly enough to clear financial markets, so Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 483 that lenders ration credit by various nonprice actual deposit flows to the deposit flows that terms.11 Since the specific details of this non­ might have been expected, with the latter price rationing—changes in downpayment measured by the average—adjusted for terms, requirements for collateral balances, growth—over the preceding 3 years. When or outright denials—are often not recorded, actual flows are low relative to expected it is difficult to measure and identify credit flows, savings institutions are forced to ration rationing and so indirect means must be new mortgage loans and thereby restrict new used to represent it. Possibly this explains housing starts. why in the present version of the model we The prerequisites for credit rationing— have evidence of the presence of credit ra­ sluggish lending and deposit rates, little pre­ tioning only in the housing sector, although dictability of deposit flows, little short-run we tested various indicators of it in the com­ control over asset composition—are by far mercial loan market and for plant and equip­ more prevalent in the mortgage-housing area ment and inventory investment. than in most other credit markets. Neverthe­ The most widely noted case of credit less, we are not convinced that they are rationing in recent years is the link between unimportant in other markets, and we feel savings institutions and the housing market. further work on representing and testing for The rates paid to depositors and charged to rationing effects might prove fruitful. mortgage lenders by savings institutions are found to be quite sluggish, possibly due to SUMMARY oligopolistic market structure, possibly due Chart 1 plots the cost of capital in real per­ to the costliness of changing advertised rates centage terms for plant and equipment in­ frequently, and at times due to governmen­ vestment and for single- and multifamily tal ceilings. Since at least part of the deposit inflows to these institutions is found to be 1 | Measures of the cost of capital sensitive to interest-rate spreads, savings in­ PER CENT stitutions experience large fluctuations in their deposit flows when market rates change rapidly. On the asset side, these institutions are forced, again by governmental regula­ tion, to invest a very high portion of their portfolio in long-term, low-turnover mort­ gages. The combination of volatile deposits, fixed-commitment mortgages, and sluggish mortgage rates increases the risk exposure of savings institutions in times of rising mar­ ket interest rates, and this combination of circumstances is assumed to cause nonprice rationing—at least for new mortgages. The credit rationing variable in the housing starts equations (A.8 and A. 10), following this line of causation, is taken to be the ratio of u A careful theoretical treatment with applications to the bank commercial loan market is developed in [7] and [8], Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

484 FEDERAL RESERVE BULLETIN a JUNE 1969 FLOW CHART | First-round effects of monetary policy BASIC INTEREST INVESTMENT COST OF HOUSEHOLD RATIONING EXPENDITURE FINAL RATE RATES OF CAPITAL ON NET WORTH VARIABLE DECISION VARIABLES EXPENDITURES RETURN TANGIBLE , CAPITAL housing quarterly from 1957-67.12 All four changes in this variable during periods of time series are heavily influenced by the basic stock price fluctuations such as the drop in pattern of long-term interest rates, but there 1962. The housing costs are similar to each are some interesting differences. The cost of other in pattern except in 1964 and 1965 capital for equipment is basically much when personal tax rates changed. The lower­ higher than the others because of the rela­ ing of personal tax rates in the first quarters tively high depreciation rate for equipment. of 1964 and of 1965 reduced the differential It dropped sharply with the introduction of advantage given to single-family houses by the investment credit in 1962 and again the tax law and raised the single-family cost with the Long Amendment in 1964.13 of capital relative to the multifamily cost. The cost of capital for structures has The flow diagram exhibits the direct ef­ neither of these effects, but there are sharp fects of monetary policy. Financial yields shown at the left affect the various categories of final demand on the right through the 12 The variables plotted are 100^’ for equipment, rpD three channels—cost of capital, wealth ef­ too for structures, Rhi for single-family fect, and credit rationing. Cost-of-capital Pps housing, and Rhs for multifamily housing. variables affect all categories of expenditure “ The Long Amendment allowed the entire cost of listed on the right. The combination of these an equipment investment to qualify for depreciation cost-of-capital linkages, the effect of finan­ deductions. Previously only the cost net of investment cial yields on net worth and consumption, credit could qualify. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 485 and the effect of the credit rationing variable Section II estimates the quantitative impor­ in housing cause for the entire model a very tance and timing pattern of this response by complicated response to monetary forces. simulation experiments. II . SOME EMPIRICAL RESULTS For this report we are using a version of the control and experimental simulations—gives Federal Reserve-MIT econometric model the response of endogenous variables in the which contains 75 behavioral equations, model to the specified maintained change in identities for 35 other endogenous variables, the policy variable. and 70 exogenous variables. Many of the equations are nonlinear, many depend im­ MONETARY POLICY SIMULATIONS portantly on initial conditions, and many Two simulations of monetary policy were have complicated internal dynamics. The re­ made. sponse patterns of the entire model are thus Direct effects of monetary policy. We quite complex, with a great many oscillatory measure the effect of our central monetary and nonoscillatory mechanisms superim­ policy instrument—unborrowed reserves— posed on each other. The following results by examining the response of the model to a are designed to illustrate just the essential maintained reserve increase of $1 billion. elements of the response of aggregate de­ That is, we assume that the Federal Reserve mand to monetary and fiscal policy measures. made $1 billion more unborrowed reserves The properties of this large and compli­ available than the actual historical amount cated model are best illustrated by simula­ in the initial quarter and maintained the tion experiments. We made a series of such billion-dollar excess over historical amounts experiments that measured the effects of step in each succeeding quarter. While actual changes in key policy variables by comput­ monetary policy changes rarely follow this ing differences between two simulation runs. step-change pattern, nevertheless it is a use­ The first run in every case is a dynamic simu­ ful experiment because it enables us to com­ lation of the model over some time period. pute the multiplier over time for this policy By dynamic we mean that, while we use change. actual values for all current and lagged We first conduct this experiment for a exogenous variables, we use only initial ac­ subset of the equations of the model includ­ tual values for endogenous variables. The ing only the financial sector and demand model generates solutions for the endogenous equations for categories of goods and serv­ variables during the first simulation period, ices affected directly by monetary policy. then uses these in generating solutions for This simulation gives us only the direct ef­ the second period, and so forth for each suc­ fects of monetary policy on financial markets ceeding period. The second run in each ex­ and—through financial markets—on final periment is another dynamic simulation that spending, uncomplicated by feedbacks of is identical to the first in all respects except output and prices back to the financial sec­ that one of the policy variables is altered by tor or by multiplier-accelerator responses a specified amount beginning in a specified within nonfinancial markets. The results are quarter and continuing for all subsequent presented in Chart 2 and summarized in quarters of the simulation period. The final Table 1. step—computing differences between the The table shows that the direct effect of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

486 FEDERAL RESERVE BULLETIN □ JUNE 1969 Direct effects on final demand of a billion- ing the multiplier-accelerator mechanism 2 dollar step increase in unborrowed and the feedback from the real sector to the reserves, initial conditions of 1964 QI financial sector. BILLIONS OF DOLLARS Table lb shows that while residential con­ struction is responsible for much of the early effect, its importance gradually declines over time. This pattern can be attributed largely to the rationing channel. In periods imme­ diately following the policy change, market rates of interest fall relative to the sluggish deposit rates of savings institutions. There follows a sharp rise in savings deposit in­ flows, which in turn stimulates housing starts and expenditures. Thus the credit-rationing channel alone comprises 17 per cent of the total direct monetary effect by the end of four quarters. But as time goes on, the nor­ mal relation between deposit rates and mar­ ket rates is restored and savings inflows fall relative to their recent high levels. As this happens, the importance of the rationing ef­ fect is reduced. In fact, by the end of 4 years deposit rates have adjusted completely, sav­ ings funds are returning to their pre-policy­ change allocation, and a reverse credit­ rationing process is at work. In the longer 2 run, this process too dies out as deposit in­ flows settle down to a steady rate of growth. The cost of capital channel operates strongly throughout the 4-year simulation period. Initial effects are important for hous­ ing and ultimate effects both for housing and WHWwBli^ ’ for plant and equipment. As mentioned earlier, cost-of-capital effects on expendi­ tures last only until actual capital stocks have reached their desired levels; in the model aiiflSiii^^ this process is not complete by the end of 4 1 2 3 4 5 6‘ ‘7 8' 9.. ......1..0.. ......I.I.. .....1..2.. .....1..3.. .....1..4.. .....1..5. 16 QUARTERS years. One reason for this long lag is the time it takes short-term market interest rates to the $1 billion open market operations is to affect long-term rates. The simulations in stimulate final demand by $3.5 billion by the Table 1 are not carried on for a long enough end of 1 year, by $5.4 billion after 2 years, period to see expenditures induced by and on up to $7.0 billion after 4 years. changes in the cost of capital recede towards These amounts are appreciably smaller than zero. The beginnings of this pattern are vis­ the total effect over the first few years includ­ ible for consumer durables, but investment Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 487 TABLE 1 DIRECT EFFECTS OF A BILLION-DOLLAR STEP INCREASE IN UNBORROWED RESERVES Initial conditions of 1964, QI a. Billions of current dollars State and Personal consumption Residential construction Plant and local Total expenditures expenditures equipment construction Quarter Cost of Cost of Credit Cost of Cost of Cost of Credit capital Wealth Total capital rating Total capital capital capital Wealth rating Total 4 .3 1.2 1.5 1.0 .6 1.6 .2 .2 1.7 1.2 .6 3.5 8 .4 2.3 2.7 1.3 .5 1.8 .6 .3 2.6 2.3 .5 5.4 12 .5 3.0 3.5 1.5 .3 1 .8 1.1 .4 3.5 3.0 6.8 16 .4 3.2 3.6 2.2 -.8 1 .4 1 .5 .5 4.6 3.2 -.8 7.0 b. Percentages of total effect Channel Residential Plant and State and Quarter Construction construction equipment local Cost of capital Wealth Credit rationing 4 43 45 6 6 49 34 17 8 50 33 11 6 48 43 9 12 51 26 16 7 51 44 5 16 51 20 21 8 66 45 -11 Note,—The results shown describe only the effect of unborrowed erator interactions or feedbacks from goods markets to financial reserves in financial markets and, through financial markets, on final markets. demand for goods and services, They do not include multiplier- accel­ in plant and equipment, multifamily hous­ effects of monetary policy changes in early ing, and State and local construction is still years, whereas the latter inclusion, by allow­ building up after 4 years. ing the rise in money income to increase The wealth effect also operates strongly interest rates and partially reverse initial rate throughout the period. Since the change in movements, gradually dampens the long-run wealth affects consumption promptly, this effects. wealth effect accounts for 35 per cent of the The results of the full-model simulation total effect by the end of the first year. It beginning in the first quarter of 1964 are builds up gradually to 45 per cent by the shown in Table 2. Here the effects on real end of 4 years, and in the very long run when GNP build up to $5.4 billion in 1 year and the other channels fade out of the picture— $10.0 billion in 2 years, but after that they aside from the permanent replacement effect decline so rapidly that by the end of 4 years of the cost of capital—the wealth effect there is scarcely any effect on real income. would comprise the entire direct monetary The 4-year effect of the monetary change on effect. money GNP is thus almost entirely in the Full-model effects of monetary policy. We form of higher prices. For the first 2 years turn now to the full-model effects of a change the full-system response for real GNP is in unborrowed reserves. These are different much larger than the direct effect shown in from the direct effects we have described Table 1 because of the multiplier-accelerator earlier because we now allow these direct mechanism. But after that the full system effects to set in motion a multiplier-accelera­ real response dies out because of the oscilla­ tor process and because we also permit the tions inherent in the accelerator system as real sector to feed back into the monetary well as because of the rises in interest rates sector. The former inclusion expands the stimulated by the rise in money GNP. By Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

488 FEDERAL RESERVE BULLETIN □ JUNE 1969 way of illustration of this interest-rate feed­ sion and listing of the nonlinear “Phillips back, in the direct-effect simulations under­ curve” equation (No. 96) which largely ac­ lying Table 1, the corporate Aaa rate de­ counts for this result in the model. clined by 46 basis points after 4 years, Another, perhaps less obvious difference whereas in the full-model simulations under­ between the two periods which affects the lying Table 2 the corporate rate declined simulation results is the difference in initial by only 23 basis points. stock market conditions. It will be recalled Effect of initial conditions. We now com­ that the value of common stock in net worth pare full-model multipliers for different ini­ is given by the capitalization identity tial conditions and different directions of policy change. For one set of simulations ST = 100 (-----] \R» / we start in the first quarter of 1964 and raise The response of stock prices to a unit change unborrowed reserves—these are the simula­ tions described already—and for the other in Rd, it follows, is equal to ( ). If the set we begin in the second quarter of 1958 dividend-price ratio changes by a constant and lower unborrowed reserves. absolute amount, therefore, the absolute The obvious difference between these two change in the value of stock—and hence net initial periods is the difference in inflationary worth and consumption—will be greater the potential. The quarters during and after lower is the initial level of this dividend­ 1964 were ones of fairly high resource utili­ price ratio and the higher the initial level of zation, and the expansion of reserves at this stock prices. In a sense, the dividend-price time would be expected to stimulate price ratio has greater leverage the lower it is. In increases promptly. On the other hand, there 1958 the dividend-price ratio was 4.1 per was substantial excess capacity in 1958 and cent, and the first-year rise of 14 basis points the decrease in reserves at that time could be induced by the restrictive monetary change expected to have a minimal short-run effect reduced the value of common stock equities on prices. The Appendix includes a discus­ by only $14 billion. But by 1964 the secular fall in dividend-price ratio had reduced it to TABLE 2 3.0 per cent, stock values had more than EFFECTS OF A BILLION-DOLLAR STEP INCREASE IN UNBORROWED RESERVES, FULL MODEL EFFECTS doubled, and the decline induced by the Initial conditions of 1964, QI monetary expansion, again 14 basis points, In percentage points unless otherwise indicated increased the value of common stock by $37 Money billion. Since the coefficient of net worth in Real GN P GNP Corporate Quarter (billions of GNP (billions of Aaa Unemploy­ the consumption function is 0.04, this differ­ 1958 deflator current bond rate ment rate dollars) dollars) ence alone directly stimulated almost $ 1 bil­ lion of added consumption. I .7 8 -.27 5 2 3 . . 0 6 2 4 . . 3 3 - - . . 1 1 4 2 - - . . 1 2 These differences are illustrated by Tables 4 5.4 .1 6.6 -.16 -.3 2 and 3. We see that initial real income 5 7.0 8.9 -.19 -.4 6 8,3 .3 11.1 -.22 -.5 effects in the 1964 simulation are moder­ 7 9.3 .4 13.2 -.22 -.6 8 10.0 .6 15,1 -.24 -.6 ately larger than in the 1958 simulation, 9 10.5 .8 16.9 -.25 -.7 mainly because of the greater impact of the 10 10.7 .9 18.6 -.26 -.7 11 10.3 1.2 19.9 -.24 -.7 dividend-price ratio. The price response is 12 9.4 1.4 20.6 -.25 -.6 13 7.9 1.7 20.6 -.25 -.6 substantially higher in 1964, even allowing 14 6.1 1.9 20.1 -.23 -.5 15 3.9 2.1 19.0 -.23 -.3 for the bigger initial real income response, 16 1.4 2.2 17.2 -.23 -.2 because of the lower initial unemployment Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 489 rate. But it is interesting to note that the GNP response would die out in both cases— much higher 1964 money GNP response but this happens more quickly the faster leads to a greater reversal of initial interest­ prices respond. rate movements; this means that by the end of 4 years the real GNP response is much COMPARISON OF MONETARY AND FISCAL POLICY MULTIPLIERS less in the 1964 simulations. In the very Finally these monetary policy multipliers long run of, say, 15 or 20 years, the real are compared with multipliers for common fiscal policy stabilization tools. The com­ TABLE 3 parisons are given in Table 4, which shows EFFECTS OF A BILLION-DOLLAR STEP DECREASE IN UNBORROWED RESERVES, FULL MODEL EFFECTS the full-model response to a $1 billion in­ Initial conditions of 1958, Q2 crease in unborrowed reserves, a $5 billion In percentage points unless otherwise indicated increase in real Federal compensation of em­ Money ployees, and a 0.02 decrease in the personal Real GNP GNP Corporate Quarter (billions of GNP (billions of Aaa Unemploy­ income tax rate. The last implies an initial 1958 deflator current bond rate ment rate dollars) dollars) revenue loss of $4.5 billion at levels in the first quarter of 1964. 1 -.5 -.5 .27 2 -1.3 -J -1.5 .14 . i 3 -2.7 -.1 -2.9 .13 .2 The size of these policy changes, and 4 -4.2 -.1 -4.6 .17 .3 hence of the real GNP and price results, is 5 -5.4 -.2 -6.1 .20 .4 6 -6.5 -.2 -7.5 .24 .5 arbitrary; there is nothing “natural” about 7 -7.3 -.3 -8.8 .27 .6 8 -7.9 -.4 -9.8 .28 .7 comparing a $1 billion reserve change with 9 -8.3 -.5 -10.7 .29 .7 a $5 billion expenditure change or any other 10 -8.5 -11.5 .29 ,7 1 1 1 2 - - 8 8 . . 6 4 - - . . 7 8 - - 1 1 2 2 . . 1 5 . . 2 3 9 0 . . 7 7 specific amount. Of interest are the dynamic 13 -8.1 -.9 -12.8 .30 .7 paths—which show a much more rapid ap­ 14 -7.7 — 1.0 -13.1 .30 ,7 15 -7.2 -1.1 -13.2 .30 .6 proach to peak real GNP effects for Federal 16 -6.6 ~1.2 -13.4 .29 .6 spending than for monetary policy—and tax TABLE 4 EFFECTS OF THREE EXPANSIONARY POLICIES Initial conditions of 1964, QX In percentage points unless otherwise indicated Real GNP (billions of Money GNP (billions of Corporate Aaa Quarter 1958 dollars) GNP deflator current dollars) bond rate Unemployment rate B j C A B C A A B C A B C A B C 1 .7 6.6 1.4 ................................. .8 7.3 1.6 -.27 .06 .03 ... -.2 ... 2 2.0 8.3 2.9 ................................. 2.3 9.4 3.4 -.14 .05 .02 -.1 -.5 -.2 3 3.6 8.7 3.6 .1 .2 .1 4.3 10.3 4.4 -.12 .05 .02 -.2 -.6 -.2 4 5.4 8.9 4.0 .1 .2 .1 6.6 11.2 5.2 -.16 .06 .03 -.3 -.6 -.3 5 7.0 9.0 4.5 .2 .4 .2 8.9 12.0 6.1 -.19 .08 .04 -.4 -.6 -.3 6 8.3 8.7 4.8 .3 .4 .2 11.1 12.4 6.8 -.22 .09 .05 -.5 -.6 -.3 7 9.3 8.0 5.0 .4 .6 .3 13.2 12.6 7.6 -.23 .10 .06 -.6 -.6 -.3 8 10.0 7.9 5.2 .6 .7 .4 15.1 13,5 8.5 -.24 .12 .07 -.6 -.6 -.3 9 10.4 7.6 5.3 .8 .9 .5 16.9 14.1 9.3 -.25 .14 .09 -.7 -.5 -.4 10 10.7 6.8 5.4 .9 1.0 .6 18.6 14.3 10.1 -.26 .16 .10 -.7 -.5 -.4 Il 10.3 6.1 5.4 1.2 1.) .7 19.9 14.5 10.9 -.24 .17 .12 -.7 -.4 -.4 12 9.4 5.6 5.2 1.4 1.3 .8 20.6 15.2 11.6 -.25 .19 .14 -.6 -.4 -.3 13 7.9 5.8 4.7 1.7 1.4 .9 20.6 16.5 11.8 -.25 .20 .14 -.6 -.4 -.3 14 6.1 6.2 3.9 1.9 1.6 1.1 20.1 18.2 11.7 -.23 .22 .15 -.5 -.4 -.3 15 3.9 5.7 2.8 2.1 1.8 1.2 19.0 18.8 11.3 -.23 .24 .16 -.3 -.4 - .2 16 1.4 5.0 1.6 2.2 1.9 1.2 17.2 19.2 10.6 -.23 .25 .18 -.2 -.3 -.2 Note.—A indicates step increase in unborrowed reserves of $1.0 $5.0 billion; and C indicates step decrease in personal tax rate of .02 billion; B indicates step increase in real Federal wage payments of (about $4.5 billion in revenue). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

490 FEDERAL RESERVE BULLETIN d JUNE 1969 rates in between the two. We have noted be­ monetary and fiscal variables. In addition, fore that these findings imply that it is diffi­ the timing patterns and the effect of fiscal cult for monetary and fiscal authorities to policy computed by the two studies are radi­ conduct “fine-tuning” stabilization policy cally different.15 operations, though stabilization operations could be successful against more persistent * *: * exogenous swings.14 Monetary policy works more slowly than We would like, in conclusion, to encour­ fiscal policy in our model because it takes age the use of the Federal Reserve-MIT time for the open market operations to be model as a framework for resolving these reflected in changes in long-term interest puzzling differences among estimates of rates and even more time for these rate monetary and fiscal policy effects. Most of changes to be reflected in investment deci­ the estimates suggest properties of the econ­ sions. The latter delay can be attributed to omy which can be translated into assertions the putty-clay behavior of equipment invest­ about equations and parameters in our ment expenditures and the long decision lag model. The structure of the model is flexible for producers’ and State and local construc­ enough to permit monetary policy to be tion expenditures. If we had found these de­ either a dominant or a rather minor force cision lags to be shorter, or if we had found and to permit the income-expenditure ap­ the more quick-acting credit rationing and proach with its implication of important fis­ wealth effects of monetary policy to be more cal policy effects to be either completely important in the first year, the model would overshadowed or largely valid. Monetary have implied a more rapid operation of policy is permitted to work through a num­ monetary policy. ber of channels, including carefully devel­ Comparisons of these results with those of oped measures of the cost of capital, wealth other models reveal a mixture of similarities effect, and credit rationing. We have pre­ and differences. Although the fiscal policy sented one set of estimates of the model in multipliers in Table 4 roughly agree with this paper, suggesting important roles for a those of other econometric models, the wide range of policy instruments. Further monetary multipliers are much larger. On work on the specification and estimation of the other hand, the monetary multipliers the model should be a useful way to analyze are appreciably smaller than those obtained and ultimately reconcile different views by the staff of the St. Louis Federal Reserve about how our major fiscal and monetary Bank recently in a regression of GNP on policy tools operate. □ “ [6], p. 27. “See [1], particularly equation 4. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

CHANNELS OF MONETARY POLICY 491 REFERENCES 1. Andersen, L., and Jordan, J. “Monetary and ometric Model of the United States. Edited by Fiscal Actions: A Test of Their Relative Impor­ Duesenberry et al. Chicago: Rand McNally, 1965. tance in Economic Stabilization,” Federal Reserve 9. Lintner, J. “Distribution of Incomes of Cor­ Bank of St. Louis, Monthly Review, November porations Among Dividends, Retained Earnings, 1968. and Taxes,” American Economic Review, May 2. Ando, A., and Modigliani, F. “Econometric 1956. Analysis of Stabilization Policies.” Paper presented 10. Modigliani, F. “Econometric Models of at the December 1968 meetings of the American Stabilization Policy.” Presented at the Far Eastern Economic Association. Meeting of the Econometric Society, June 1968. 3. ___. “The ‘Life Cycle’ Hypothesis of Sav­ 11. Modigliani, F„ and Brumberg, R. “Utility ing: Aggregate Implications and Tests,” American Analysis and the Consumption Function: An Inter­ Economic Review, March 1963. pretation of Cross-Section Data,” Post-Keynesian 4. Bischoff, C. W. A Study of Distributed Lags Economics. Edited by K. Kurihara. Rutgers Uni­ and Business Fixed Investment. Doctoral disserta­ versity Press, 1954. tion, Massachusetts Institute of Technology, 1968. 12. Modigliani, F., and Sutch, R. “Innovations in Interest Rate Policies,” American Economic Re­ 5. de Leeuw, F., and Gramlich, E. “The Fed­ view, May 1966. eral Reserve-MIT Econometric Model,” Federal 13. Muth, R. “The Demand for Non-Farm Reserve Bulletin, January 1968. Housing,” in The Demand for Durable Goods. 6. Jaffee, D. Credit Rationing and the Commer­ Edited by Harberger. University of Chicago Press, cial Loan Market. Doctoral dissertation, Massa­ 1960. chusetts Institute of Technology, 1968. 14. Rasche, R., and Shapiro, H. “The F.R.B.- 7. Jaffee, D., and Modigliani, F. “A Theory and MIT Econometric Model: Its Special Features,” Test of Credit Rationing.” To be published. American Economic Review, May 1968. 8. Jorgenson, D. “Anticipations and Invest­ 15. Reid, M. Housing and Income. University ment Behavior,” in The Brookings Quarterly Econ­ of Chicago Press, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Our Problem of Inflation Members of the Division of Research and Statistics, the Division of International Fi­ nance, and the Division of Data Processing of the Board of Governors of the Federal Reserve System made a Staff Presentation in audio-visual form to the 6th Annual Con­ ference of the Central Bank Governors of the Western Hemisphere on April 27, 1969. The materials used on that occasion—with some modifications of charts and text—are shown below. This presentation reviews briefly the ma­ jor problems of economic stabilization that monetary and fiscal policies have had to face over the past several years in the United States. As you know, the central problem of this period has been growing inflation. Per­ haps we ought to begin, therefore, by recall­ ing the period of relatively stable expansion that we enjoyed in the early 1960’s and con­ sider the principal factors that brought about overheating in the U.S. economy. Following a period of slow growth and CHANGES IN GNP high unemployment in the late 195O’s, real Per cent economic expansion in the opening years of this decade was quite substantial by his­ torical standards. Since manpower and material resources were ample, prices rose little, and the growth rate of gross national product in current dollars was only margin­ ally above the real rate of expansion. The average growth rate in real GNP of 4 per cent in 1960-64, however, was not rapid enough to reduce unemployment substanti­ ally, and major reductions in income taxes were legislated in 1964. By the fall of 1965, the economy was also faced with a sharp expansion of defense production associated with the war in Viet- 492 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

nam. Added to the already vigorous growth in private outlays, the increase in defense expenditures raised the real growth rate to more than 6 per cent in 1965 and 1966. Demands for manpower and capital re­ sources increased greatly, and a cycle of wage and price rises began that has con­ tinued to the present. When the rate of investment in inventories declined in early 1967, real growth moder­ ated temporarily, and price pressures eased for a while. But output began to expand rapidly later that year, and price pressures accelerated again. Last year current-dollar GNP rose 9 per cent, and with demands greatly exceeding available resources, price increases accounted for almost half the in­ crease in GNP. One of the dominant factors responsible FEDERAL EXPENDITURES for excess aggregate demands in recent years has been the rapid growth in Federal Gov­ ernment expenditures. Particularly import­ ant was the sharp jump in defense outlays starting in 1965, which came at a time when we were approaching full employment of our resources. Defense expenditures had re­ mained relatively stable in the previous 3 years, but then rose by over 40 per cent be­ tween 1965 and 1967, as military opera­ tions intensified in the Far East. In 1968, however, the rise began to slow, and—even at the present level of hostilities—defense outlays in 1969 are not likely to show much increase from the 1968 level. Outlays for defense not connected with the Vietnam conflict have declined since the middle of last year, reflecting the fiscal restraint meas­ ures adopted at that time. Other Federal Government expenditures, meanwhile, have continued to rise rapidly, reflecting growing demands for services by an expanding population and the national commitment to reduce poverty and to raise the quality of life for the general population. Thus, spending has risen substantially for old-age pensions, welfare, education, medi- 493 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

494 FEDERAL RESERVE BULLETIN □ JUNE 1969 cal aid for the elderly, and programs con­ nected with the problems of our urban areas, as well as for the normal operations of Gov­ ernment. While spending for defense and for civil­ ian purposes was up by about one-half from late 1965 to the middle of last year, the growth of Government tax receipts was slower, and a large deficit began developing early in 1967. The deficit that calendar year was larger than in any other year since World War II. To eliminate this source of inflationary pressure, the President in early 1967 proposed a surtax on the incomes of individuals and corporations, but the tax was not enacted by Congress until mid- 1968. Stringent controls on Federal spend­ ing were also imposed at that time. This tax increase, together with continued strong gains in private incomes, produced a sharp rise in Federal receipts. And with both defense and civilian-type outlays level­ ing off, a marked reduction in the deficit occurred during 1968. Furthermore, we ex­ pect a moderate surplus in 1969. This swing toward a more favorable budget position has already begun to slow the rate of real growth in the economy. In addition to the rapid growth of Federal expenditures in the past several years, we have been experiencing a substantial ex­ pansion in business fixed investment. The upswing in business capital spending began in response to tax incentives adopted in the earlier years of the 1960’s and accelerated subsequently in response to growth in both private and government demands for goods and services. In 1965 and 1966, business fixed investment expenditures rose at an average rate of about 15 per cent—much larger than the rate of growth of GNP. As a consequence, the share of GNP accounted for by business fixed investment rose to nearly 11 per cent. The capital goods boom slowed in 1967, but there was a fresh upsurge in capital Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 495 spending late last year—despite an appar­ ently adequate supply of plant capacity— because of rising labor costs and expecta­ tions of further price increases. Recent sur­ veys indicate that businessmen expect to GROWTH IN INCOME & increase their capital spending by 14 per cent this year. This renewed boom in capital spending has been a major factor contribut­ ing to inflationary pressures. Associated with the sharp rise in output of recent years has been a rapid advance in employment and wages and consequently a large growth in consumer disposable in­ come. In 1965 and 1966, incomes advanced much faster than in the preceding years. In those 2 years the saving rate rose somewhat above the 1960-64 average, shown in the chart by the square. But gains in income were large enough to lay the basis for strong increases in consumer expenditures. The pace of buying moderated only tem­ porarily in 1967, and there was a surge of consumer spending again in early 1968, when disposable income rose very sharply and, in addition, the rate of saving dropped. Higher taxes imposed in mid-1968 have helped to moderate the growth in disposable income, and we expect slower growth in consumer spending this year. It does appear, however, that a further drop in the saving rate is cushioning the impact on consump­ tion of the restrictive fiscal policies adopted last summer. With output growing rapidly, manpower resources in the U.S. economy have been under increasing pressure since 1965. Em­ ployment growth has been very strong and has exceeded in nearly every recent year the large additions to the labor force provided by growth in the population of working age and by the rising proportion of married women entering the labor force. As a result, the over-all unemployment rate has fallen from an average of over 5 per cent in the 1960-64 period to under 3% per cent re­ cently. This is the lowest level in 15 years Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

496 FEDERAL RESERVE BULLETIN □ JUNE 1969 and indicates a very tight labor market, with skilled labor in very scarce supply. Never­ theless, some groups—such as youths, non­ white workers, and those with little skill and training—still find it relatively difficult to find jobs, and unemployment among these MANUFACTURING CHANGE FROM PREVIOUS PERIOD groups continues to present serious social and economic problems. With over-all labor demands exceeding HOURLY COMPENSATION supply, however, rising wages have become a source of increasing inflationary pressure. Annual gains in hourly compensation in manufacturing rose to nearly 7 per cent in PRODUCTIVITY 1968 and have substantially exceeded pro­ ductivity growth in the past 3 years. More­ over, the rise in productivity in manufac­ UNIT turing has slowed from the average increase LABOR COSTS of almost 4 per cent that we enjoyed in the early years of the 1960’s. As a result, unit labor costs began to rise in 1966 and advanced substantially faster in the past 2 years. And with demand strong, businesses have been able to continue to pass along much of the labor cost increases in the form of higher prices. The consequence has been a significant upward movement in wholesale prices, fol­ lowing a number of years of stability in the late 195O’s and early 1960’s. The rise in these began in 1965 but then moderated temporarily in 1967 as activity slowed. Then, last year, these prices resumed their upward momentum over a broad front. Large increases have continued in farm products and in building and other industrial materials, pushing the total index up by about 214 per cent in the past year. The upward trend in consumer prices has accelerated. In the 1960-64 period, con­ sumer prices rose only a little, and most of the rise reflected the mounting cost of serv­ ices. But thereafter consumer prices began to move up somewhat more rapidly in re­ sponse to the increase in wholesale prices. Last year, exceedingly strong demands pushed consumer prices up by almost 5 per Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 497 cent; increases were large in many food and nonfood commodities, as well as in services. BALANCE OF PAYMENTS The United States is a huge economic unit, and we often think of the foreign sector as a small marginal factor. But in fact our exports of goods and services have nearly doubled since 1960 to a total of over $50 billion, some 6 per cent of GNP. By com­ parison, our export total is nearly equal to GOODS & SERVICES domestic expenditures for producers’ durable BIL$ equipment and more than twice as large as investment in residential structures. More­ over, the United States accounts for 19 per cent of world merchandise trade. Thus, the trade performance of the United States is important for our own economy as well as for others. While our total exports to the rest of the world have expanded rapidly, they have lagged behind the growth in U.S. imports of goods and services from abroad, so that our historically favorable current surplus has been sharply reduced. This reduction is a major problem, because it curtails the ability of the United States to finance outflows of private capital and to sustain Government development outlays abroad. For many years our earnings abroad fell short of our outlays, and our international U.S. RESERVE POSITION reserve position deteriorated. Total reserve assets—gold, foreign currencies, and our reserve position in the International Mone­ tary Fund—which reached over $26 billion after World War II, were under $16 billion at the end of last year. In the past 3 years, enlarged inflows of foreign capital have arrested this deterioration. For any other country reserves of that size might seem adequate, but since the U.S. dollar is used worldwide as a reserve asset, as well as in private transactions, the size of our reserves must be weighed against our liabilities. Our liabilities to foreign monetary authorities have exceeded our reserve assets since 1965, and liabilities to commercial banks abroad, including branches of U.S. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

498 FEDERAL RESERVE BULLETIN □ JUNE 1969 banks, have been growing at an extraordi­ nary pace through the borrowings of U.S. banks in the Euro-dollar market. Though the net reserve position is a mat­ ter for concern, the primary focus of atten­ tion for the longer run is the over-all struc­ ture of our international transactions. Turning again to current transactions, our payments to other countries for imported goods and services began to move up sharply in 1965 and accelerated again last year. A major element in the rise since 1965 has been increased military expenditures abroad. Tourist expenditures have also risen steadily and now total over $3 billion annually. Moreover, rising interest rates and larger foreign holdings of U.S. securities and de­ posits in U.S. banks have resulted in much larger income payments to foreign countries recently. By far the largest increase in U.S. outpayments lately, however, was in mer­ chandise imports, which jumped by 23 per cent last year—that is, by more than $6 billion. Our receipts from merchandise exports and from income on investments have been rising by substantial amounts, though not so rapidly as imports. Export gains last year were especially large to continental Euro­ pean countries, where demand was rising rapidly. U.S. exports have held fairly steady at about 20 per cent of the world total. The rise in investment income receipts is mainly from corporate direct investments abroad. These receipts reached $5 billion in 1968, about double the 1960 amount. The dramatic deterioration in our trading accounts stems from the fact that when our demand pressures become excessive our im­ ports tend to rise much faster than GNP. Some of this extra rise in imports results from supply shortages in the United States, but for some years the competition of for­ eign suppliers has been increasingly effec­ tive. In part, this reflects the recovery of productive efficiency in countries whose Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 499 economies were dislocated during World War II. It also reflects some very effective designing of products to satisfy the changing tastes of U.S. consumers. EXPORT PRICES: MANUFACTURES But relative production costs and export 1960=100 prices may also play a role. In this respect the United States—after enjoying price stability in the early 1960’s—has fallen be­ hind since 1965 as compared with other major industrial countries. Trends in export prices of Germany and Japan are illustrative of the divergences that have developed. Suc­ cess in our current major effort to cut the rate of price inflation in the United States is essential if we are to restore the strong trade surplus we require to balance our interna­ tional accounts. In attacking its balance of payments prob­ lems, the United States has resorted to vari­ ous devices to limit the outflow of private capital. Earlier in the postwar period this outflow was strongly encouraged to assist the reconstruction and development of other countries. But it became clear in the early 1960’s that the balance of payments deficits were persistent and that an important factor was the growing outflow of private capital, PRIVATE CAPITAL OUTFLOW especially to developed countries. The first measure, taken in 1963, was adoption of the interest equalization tax, affecting purchases of foreign securities; then, in 1965 volun­ tary restraints were introduced that covered bank lending and corporate direct invest­ ments. Under these measures, U.S. pur­ chases of foreign securities were stabilized, and foreign lending by U.S. banks was greatly reduced except for export credits. However, the capital outflow for direct in­ vestments remained high by historic stand­ ards, and on January 1, 1968, the controls on direct investments were made mandatory. The main impact of these restraints was in­ tended to be on the flows to developed coun­ tries with adequate financial resources, and in that respect the effort was very successful. As you know, the restraint program was re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

500 FEDERAL RESERVE BULLETIN □ JUNE 1969 cently revised—primarily to remove inequi­ ties, to help support exports, and to recog­ nize changed capital market conditions. In recent years, a growing part of the total outflow of capital by U.S. corporations in­ volved the use of funds obtained by borrow­ ing abroad, rather than the use of funds from U.S. sources. In 1968, in response to the new controls, U.S. corporations greatly increased their use of foreign financing. Con­ sequently, if we adjust the capital outflow to exclude these offshore funds, we find that the outflow of corporate capital financed by U.S. funds shrank to about $14 billion—$2 bil­ lion less than in 1967. Probably the most dramatic development in the U.S. balance of payments last year was the extraordinary inflow of foreign capi­ tal for investments of many kinds. First there was the inflow in the form of borrowings by U.S. corporations just mentioned. In addi­ tion, investments in U.S. corporate securi­ ties in the U.S. market soared to about $2 billion—roughly 10 times the average an­ nual amount before 1967—as European and other investors found such investments an attractive outlet for savings. In another major development, great amounts of for­ eign liquid assets were attracted into Euro­ dollar deposits, and U.S. banks, through their branches in the Euro-dollar market, borrowed these funds for use in the United States. The sum of all inflows of private for­ eign capital last year exceeded $9 billion— about $6 billion more than in 1967, and very much more than in any year before 1966. To sum up these diverse trends in the U.S. balance of payments: (1) the current ac­ count surplus fell to about $2 billion last year and is expected to recover only part of the loss this year; (2) the inflow of private foreign capital was so large in 1968—over $9 billion—that it more than offset the de­ terioration in other accounts; (3) net pay­ ments for other transactions, which include Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 501 U.S. private and Government capital out­ flows and unilateral transfers, were reduced from the 1967 peak, and their magnitude this year will depend in part on monetary conditions in the United States; and (4) the balance on official settlements, which is measured by changes in our reserve assets and our liabilities to foreign monetary au­ thorities, moved into surplus last year and has continued in surplus this year. The structure of the U.S. balance of pay­ ments that emerged last year cannot be re­ garded as satisfactory. The United States and the world would clearly benefit from a return to a pattern in which we would have a larger trade balance—though perhaps not so large as was normal a few years ago— and would be able to remove limitations on capital outflows. FINANCIAL MARKETS AND POLICY The task of getting inflation under con­ trol and of achieving a better balance in our international payments accounts has not been easy—of course it never is. In retro­ spect, it is clear that fiscal policy should have moved to a restrictive posture before the middle of last year, but timely fiscal action was not forthcoming. Consequently, the first 3 years of our battle with inflation—from mid-1965 to mid-1968—were fought prin­ cipally on the monetary front. The fundamental problem in the use of monetary policy instruments has been that of resisting the heavy credit demands ac­ companying the rapid expansion in eco­ nomic activity. Private borrowing began to rise in 1965 but declined a little in 1966 under the pressure of reduced credit avail­ ability. A renewed surge of private borrow­ ing began in 1967, however, and has con­ tinued to the present. Especially notable over these recent years has been the large volume of private borrowing by businesses, associated with the rapid rise in fixed in­ vestment in 1965 and 1966 and then again since mid-1968. Pressures in the credit markets arising Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

502 FEDERAL RESERVE BULLETIN ° JUNE 1969 from heavy credit demands seem easier to resist with monetary policy when the de­ mands for credit come from the private economy rather than from the Federal Gov­ BORROWING ernment. But Federal expenditures were bilS rising rapidly, and accordingly borrowing by the Federal Government and its various agencies increased substantially in 1967 and rose more in 1968. The consequence has been a substantially more rapid advance in total borrowing than in GNP during recent years. Although bor­ rowing as a percentage of GNP declined in 1966, the proportion did not fall below the average level registered earlier in the 1960’s, and since 1966 it has grown sharply, push­ ing up interest rates to levels unprecedented in our modern economic history. Although interest rates on short-term se­ curities—represented here by Treasury bills —began to rise during the early years of the 1960’s, rates on mortgages and corporate bonds were relatively low and stable in those years. But beginning in mid-1965, long­ term interest rates began to rise also. Inter­ est rates did decline somewhat during the first part of 1967, when GNP growth slowed and the restrictive monetary policy fol­ lowed in 1966 was eased. But interest rates soon began to rise again and have recently reached new peaks. Given the intensity of inflationary psychology, even these record levels of interest rates have not, as yet, mod­ erated private spending plans enough to curb inflationary pressures. The marked increase in interest rates since mid-1965 has occurred despite rather high rates of monetary expansion over the past 4 years as a whole. Growth in the money stock did decline significantly in 1966, when monetary policy was very restrictive and the public was induced by sharply rising interest rates to economize on cash balances. How­ ever, efforts to rebuild depleted money bal­ ances, rising private expenditures, and heavy Federal deficit financing in 1967 and 1968 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 503 were accompanied by accommodative mone­ tary policies that led to sharply increased growth in money during those years. Monetary policy in the United States, MONETARY EXPANSION through its influence on relative interest Per cent rates, also affects the growth of financial assets other than money. The influence on commercial bank time deposits is especially important, because these deposits are close substitutes for market securities in the pub­ lic’s financial asset portfolio. Moreover, time deposit growth, at times, has been con­ strained by ceiling rates that banks may pay. Consequently, the growth of money and time deposits together may provide addi­ tional clues as to the effects of monetary policy on the banking system. Thus, growth of time deposits and money together dropped appreciably in 1966, when yields on short-term market securities rose above the rates that banks could pay on time deposits. And in 1968, the rate of expan­ sion in the total declined again, even though the money stock continued to increase rapidly. Since the fall of last year, monetary policy has once again become restrictive, and with interest rates rising rapidly, rates of mone­ tary expansion have been reduced appreci­ ably. In the first quarter of this year, the annual growth rate of the money stock de­ clined to about 214 per cent. Furthermore, large commercial banks have experienced a substantial reduction in the volume of their time certificates of deposit sold in large de­ nominations as short-term market interest rates once again have risen above the rates that banks may pay. As a consequence, the total of money and time deposits in the first quarter declined at a 214 per cent annual rate. Changes in the pace of deposit expansion at banks have their counterpart in variations in the growth of bank credit. Growth in bank credit declined sharply in 1966, and bank loans became less readily available and more Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

504 FEDERAL RESERVE BULLETIN □ JUNE 1969 costly. In the next 2 years, bank credit growth rebounded, as monetary policy sup­ plied reserves in relative abundance, and the commercial banking system supplied funds to help finance Federal borrowing. These variations in bank credit growth BANK CREDIT produced marked alterations in the share of total lending supplied by the commercial banking system. In 1966 banks supplied less than one-fourth of all borrowed funds, but the proportion was about 40 per cent in 1967 and 1968. The impact of slower bank deposit growth so far this year has reduced appreciably the volume of funds made available through the banking system. In the first quarter, the an­ nual growth rate of bank credit fell to 116 per cent, and interest rates rose on most categories of bank loans. However, it takes time to curtail the availability of bank loans to business—since banks may utilize for business lending the funds obtained from sources other than deposits, such as sales of investments or borrowing in the Euro-dollar market. As bank liquidity declines, how­ ever, the impact of monetary restraint should increasingly affect bank lending policies and private spending. The effects of monetary policy in the NONBANK SAVINGS ACCOUNTS United States are registered not only in the commercial banking system but also in the growth rates of nonbank savings accounts at major thrift institutions. Growth rates of these accounts began to decline in 1965, when interest rates on market securities be­ gan to rise, and fell further in 1966, when commercial banks became much more ag­ gressive in bidding for consumer savings. The consequence was a precipitous drop in inflows to these intermediaries that threat­ ened the liquidity positions of some institu­ tions. Since then, competition among banks and the thrift institutions has been mitigated by the imposition of coordinated interest-rate ceilings. The principal competitor for non- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

OUR PROBLEM OF INFLATION 505 bank savings accounts since late 1966, therefore, has been market securities, and the rate of growth of these accounts has varied with market rates of interest. Early this year, the rate of growth of these accounts held close to the reduced 1968 pace. The further rise in market interest rates thus far in 1969 does not seem to have attracted significant amounts of additional funds out of nonbank savings accounts. Most of those depositors who are unusually sensitive to changing market rates of inter­ est appear to have already transferred their funds out of nonbank savings accounts; the remaining depositors at these institutions are concerned principally with factors other than relative interest rates. Thus, the severe impact of monetary restraint on nonbank savings accounts that we saw in 1966 does not seem likely to be repeated. The housing market often is affected RESIDENTIAL CONSTRUCTION heavily by a declining growth rate of de­ posits at nonbank institutions, which are major suppliers of residential mortgage funds. Housing starts and residential con­ struction expenditures fell sharply in 1966 with the reduced availability and higher cost of mortgage credit. We learned then that reliance on monetary policy alone to control inflation can put an excessive burden of restraint on the housing market. While monetary restraint in 1969 is likely once again to result in some moderation in home construction, its impact should be con­ siderably milder than in 1966. As we noted earlier, inflows of savings to the nonbank institutions are not being affected so severely by monetary restraint now as in 1966, and new sources of funds to the mortgage mar­ ket have also developed over the past several years. More important, however, is the fact that now we are not relying on monetary policy alone to restrain private spending. Fiscal policy has moved to a restrictive posture too. Restraint on Federal expenditures and the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

passage of the surtax last year have changed the Federal budgetary picture dramatically, and we are now hojping for a budget surplus of about $4 billion or more in calendar 1969. With fiscal policy and monetary policy CHANGES IN GNP working together to restrain spending, we are optimistic that growth in GNP will mod­ erate this year. In real terms, GNP growth might decline to a little more than 3 per cent this year, compared with 5 per cent in 1968. In current dollars, the growth rate might drop to 7 Vz per cent, contrasted with 9 per cent last year. If we can achieve this degree of moderation in GNP growth, prog­ ress in tempering upward pressures on wage rates and prices should begin to be evident before the year-end. We recognize, however, that unwinding from the inflationary developments of the past several years will take time, if we are to avoid unfortunate repercussions—not only in our own economy, but also in other coun­ tries. But we do believe that a good begin­ ning has been made in adopting stabilization policies that will eventually bring inflation under control and lead to a better structure of our international payments accounts. The task ahead of us is to pursue an anti-infla­ tionary course resolutely and long enough to ensure that a resurgence of excess demand and of strong cost and price pressures does not occur. □ 506 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statement to Congress Statement of J. L. Robertson, Vice Chair­ tact with the credit reporting agencies that man, Board of Governors of the Federal would be regulated under the bill, and we Reserve System, before the Senate Banking would not presume to advise you regarding and Currency Committee, Subcommittee on what may be right or wrong about their Financial Institutions, May 19, 1969. existing procedures, or for that matter what their procedures are, since you unquestion­ ably know more about them than we do. If we had a Truth in Testifying law, I would While the Board has no position, there­ have to confess that I am not really delighted fore, on the merits of the bill, we do have a to be here this morning. I find myself in the recommendation as to its administrative pro­ awkward position of having little to con­ visions. As introduced, S. 823 would direct tribute to this hearing. The Board of Gov­ the Board to prescribe implementing regu­ ernors of the Federal Reserve System be­ lations. This is a responsibility the Board is lieves, as I suppose everyone here does, that not prepared to assume. The functions vested credit information on individuals should be in the Board by the Truth in Lending Act accurate, and that credit reporting agencies should not be taken as a precedent for as­ should conduct their operations “with fair­ signing to the Board wide-ranging duties in ness, impartiality, and a respect for the in­ the general area of consumer protection. dividual right to privacy,” as provided in S. Such an assignment would be inconsistent 823. But the Board is not in a position to with effective performance of our primary help you decide whether Federal legislation duties in the field of monetary policy. In is needed or useful in achieving this goal or view of the increasing interest Congress is to recommend the kind of legislation that showing in expanding Federal legislation for would be most appropriate if a need exists. the protection of consumers, we strongly Service as a member of the Board does recommend that responsibility for imple­ not equip one to decide whether a Federal menting such legislation be vested not in the law is the answer to the very serious ques­ Board but in an agency more familiar with tions raised by S. 823. In carrying out our consumer problems and more expert in cop­ responsibilities, we have virtually no con­ ing with them. □ 507 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 Bulle­ tins for April 1968 through March 1969. The records for the first two meetings held in 1969 were published in the Bulletins for April, pages 345-52, and May, pages 433-39. The record for the meeting held on March 4, 1969, follows: 508 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MEETING HELD ON MARCH 4, 1969 1. Authority to effect transactions in System Account. Growth in real GNP was now estimated by the Commerce Department to have moderated somewhat more in the fourth quarter of 1968 than indicated earlier, and staff projections suggested that it would moderate further in the first half of 1969. However, upward pressures on prices and costs were persisting, and it appeared that expectations of continu­ ing inflation were still an important factor underlying business spending decisions. In February, according to available weekly data, retail sales were about unchanged from January—when, in turn, they had risen to a level close to that of the preceding November. Tentative estimates indi­ cated that industrial production continued to increase at a slower rate than in late 1968. In January nonfarm employment rose substantially further, and the unemployment rate was unchanged at the low level of 3.3 per cent. The labor market remained tight, and average hourly earnings of production workers continued upward at a rapid rate. Average wholesale prices of industrial commodities increased con­ siderably further from mid-January to mid-February, but by less than in the preceding month when, according to revised data, the largest monthly increase in more than 13 years had been recorded. In January average consumer prices continued to advance at a rapid pace, particu­ larly after allowance for the usual seasonal declines in prices of some major commodities. Revised Commerce Department estimates indicated that growth in real GNP had moderated from an annual rate of 5.0 per cent in the third quarter of 1968 to 3.4 per cent in the fourth quarter, rather than to 3.8 per cent as had been shown in the preliminary report. The slackening in the fourth quarter was attributable largely to a marked slowing of the rise in consumer and Federal expenditures on goods and services; business outlays on plant and equipment and on inventory accumulation had increased considerably, as had residential construc­ tion activity. The staff projections for the first half of 1969 suggested that growth in disposable income would be held down by the increase in social 509 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

510 FEDERAL RESERVE BULLETIN a JUNE 1969 security tax rates that became effective January 1 and by retroactive payments on 1968 personal income tax liabilities. It was expected that the rate of personal saving would decline from its high fourth-quarter level and that consumer spending would rise at a pace moderately faster than in the fourth quarter. Federal purchases were projected to remain close to the fourth-quarter level. The projections also implied that as the first half of the year progressed residential construction activity would be increasingly limited by the reduced availability of mortgage funds; that the rapid current expansion in business capital outlays would slow; and that the rate of inventory accumulation would be reduced. Preliminary data indicated that there had been a substantial deficit in the U.S. balance of payments on the liquidity basis in the first 2 months of 1969. But the extent to which both payments and receipts had been affected by the longshoremen’s strike—which began on De­ cember 20 and ended in mid-February in New York and later at cer­ tain other Atlantic and Gulf Coast ports—was not clear. On the official settlements basis a large surplus was recorded in January, as liabilities of U.S. banks to their foreign branches rose sharply to a new high. In February, however, a deficit apparently developed on the official settle­ ments basis, as net inflows of Euro-dollars through foreign branches were substantially smaller. Interest rates in the Euro-dollar market advanced considerably further to new record levels in February. On February 27 the Bank of England raised its discount rate by 1 percentage point to the 8 per cent level that had been maintained for about 4 months after the devaluation of sterling in November 1967. This action was taken to reinforce Britain’s policy of severe domestic credit restraint and was officially described as consistent with the recent marked increases in short-term interest rates in international financial markets. Shortly thereafter, discount rates were raised by the Bank of Sweden from 5 to 6 per cent, and by the Bank of Canada from 616 to 7 per cent. The Treasury refunding of notes and bonds maturing in mid-Febru­ ary was accorded an unenthusiastic reception by the market. Of the $5.4 billion of maturing issues held by the public, about $2 billion, or 36 per cent, were redeemed for cash; $2.6 billion were exchanged for the new 15-month, 6% per cent note; and $885 million were exchanged Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 511 for the new 7-year, 614 per cent note. Subsequently, on February 25, the Treasury auctioned a $1 billion strip of bills consisting of five issues maturing in 1 to 5 months. Banks, which were allowed to pay for the new bills through credits to Treasury tax and loan accounts, successfully bid for the bulk of the issue. Most interest rates had risen on balance since the previous meeting of the Committee. To a large extent the advances reflected growing expectations—particularly after recent congressional testimony by Federal Reserve and administration officials—that monetary restraint would be maintained in an effort to contain inflationary pressures. The higher rates also reflected anticipations of a possible near-term increase in the prime lending rate of banks and perhaps also in the Federal Reserve discount rate. Yields in capital markets moved up to or above their earlier peaks, despite the somewhat smaller volumes of new cor­ porate and municipal issues offered in February and scheduled for March. In the mortgage market interest rates rose further to new post­ war highs, as demands for mortgage loans remained strong and, accord­ ing to available data for early February, net inflows of funds to thrift institutions continued to moderate. Most short-term interest rates also rose in the period, but rates on Treasury bills maturing within 6 months changed little on balance. For example, the market rate on 3-month Treasury bills was 6.17 per cent on the day before this meeting, compared with 6.19 per cent 4 weeks earlier. During the interval the 3-month bill rate had declined to around 6.00 per cent—reflecting substantial liquidity demands for shorter-term bills and relatively limited dealer inventories—but it subsequently rose again, particularly after the increase in the discount rate of the Bank of England. System open market operations since the previous meeting of the Committee had been directed at maintaining firm conditions in the money and short-term credit markets. Conditions in the money market tended to tighten during the period as a result of the cumulative reduc­ tion in bank liquidity and a seasonal shift in reserves away from the major money market banks. This tendency was not fully offset by Sys­ tem action, however, because shorter-term bill rates were under down­ ward pressure for much of the period. Federal funds traded mainly in a range around 6% per cent, up from a range centering closer to 614 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

512 FEDERAL RESERVE BULLETIN □ JUNE 1969 per cent in the previous period. Member bank borrowings averaged $835 million in the 4 weeks ending February 26, compared with about $790 million in the previous 3 weeks. Average excess reserves were little changed, so net borrowed reserves also increased. With short-term market interest rates remaining high relative to maximum rates payable by banks on large-denomination CD’s, the volume of such CD’s outstanding declined considerably further in Feb­ ruary—although by less than in January when the amount maturing was larger. During the first 2 months of the year the rate of expansion in consumer-type time and savings deposits was well below that in comparable periods of other recent years, and in both months total time and savings deposits contracted at an annual rate in the neigh­ borhood of 10 per cent. Growth in private demand deposits and in the money stock moderated further in February; for January and February together the money stock rose at an annual rate of less than 3 per cent, about half the rate of the second half of 1968. U.S. Govern­ ment deposits increased sharply further in February to their highest average level in several months. Although moderating in February, growth in business loans remained rapid. Other loans, which had declined slightly in January, increased substantially. In accommodating the large loan demand, banks stepped up the rate at which they had been liquidating holdings of Treasury securities, and for the first time since April 1968, they failed to increase their holdings of municipal securities. In February total bank credit, as measured by the adjusted proxy series—daily-average member bank deposits, adjusted to include changes in the daily average of U.S. bank liabilities to foreign branches—rose 2 per cent from January, at an annual rate, and was about unchanged from December. Staff projections suggested that if prevailing money market condi­ tions and existing Regulation Q ceilings were maintained the volume of large-denomination CD’s outstanding was likely to decline at about the same pace in March as in February. It was expected that total time and savings deposits would contract further from February to March, but at a slower rate than in the previous month. Growth in the money stock was projected to accelerate temporarily on the average in March, when it was anticipated that U.S. Government deposits would be drawn down sharply. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 513 With respect to bank credit, the projections suggested that the ad­ justed proxy series would decline at an annual rate of 3 to 6 per cent from February to March, if U.S. bank liabilities to foreign branches were unchanged on the average in March from the level to which they had risen by the end of February. It appeared likely that loan demands would remain strong, and banks were expected to continue to liquidate holdings of U.S. Government securities and to limit their participation in the market for municipal securities. The Committee agreed that, in light of the persistence of inflationary pressures and expectations, the existing degree of monetary restraint should be continued at present. The members decided that open market operations should be directed at maintaining on balance about the prevailing firm conditions in money and short-term credit markets, sub­ ject to the proviso that operations should be modified if bank credit appeared to be deviating significantly from current projections. Some concern was expressed about the projection that the bank credit proxy would decline in March after 2 months of no net growth, and about the risks that undue liquidity pressures might develop. The Committee agreed that the proviso clause should be implemented in the direction of firmer money market conditions only if bank credit appeared to be growing at more than a moderate rate. It also agreed that the clause should be implemented in the direction of less firm con­ ditions if bank credit appeared to be contracting any more rapidly than projected, so long as such action did not tend to create the im­ pression that the basic stance of monetary policy had been relaxed. 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, but that upward pres­ sures on prices and costs are persisting. Prospects are for some further slowing in economic expansion in the period ahead. Most market interest rates have edged up on balance in recent weeks. In the first 2 months of the year bank credit changed little on average, as invest­ ments contracted while loan demands, especially from businesses, re­ mained strong. The outstanding volume of large-denomination CD’s continued to decline sharply and inflows of other time and savings deposits slowed. Growth in the money supply moderated as U.S. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN □ JUNE 1969 Government deposits rose considerably. It appears that a sizable deficit re-emerged in the U.S. balance of payments on the liquidity basis in January and February and, with Euro-dollar inflows moderat­ ing, a deficit also reappeared in the balance on the official settlements basis in February. In this situation, it is the policy of the Federal Open Market Committee to foster financial 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 balance of payments. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining on balance about the prevailing firm conditions in money and short-term credit markets; provided, however, that operations shall be modified if bank credit appears to be deviating significantly from current projections. Votes for this action: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against this action: None. 2. Amendments to authorization tor System foreign currency operations. The Committee amended paragraphs 1 and 2 of the authorization for System foreign currency operations in a number of respects at this meeting. On recommendation of the Special Manager, the limit on outright holdings by the System of authorized foreign currencies speci­ fied in the paragraph previously numbered as IB(2)—but, after other amendments made at this meeting, renumbered as IB(3)—was in­ creased from $150 million to $250 million equivalent. In addition, clarifying amendments were made in the introductory text to paragraph 1, in paragraphs IB and 1C(1), and in paragraph 2. Except for the changes resulting from these amendments, the Committee renewed the authorization in the form outstanding at the beginning of the year 1969. As amended, paragraphs 1 and 2 of the authorization read as follows: 1. The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York, for System Open Market Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 515 Account, to the extent necessary to carry out the Committee’s foreign currency directive and express authorizations by the Committee pur­ suant thereto: A. To purchase and sell the following foreign currencies in the form of cable transfers through spot or forward transactions on the open market at home and abroad, including transactions with the U.S. Stabilization Fund established by Section 10 of the Gold Reserve Act of 1934, with foreign monetary authorities, and with the Bank for International Settlements: Austrian schillings Belgian francs Canadian dollars Danish kroner Pounds sterling French francs German marks Italian lire Japanese yen Mexican pesos Netherlands guilders Norwegian kroner Swedish kronor Swiss francs B. To hold foreign currencies listed in paragraph A above, up to the following limits: (1) Currencies purchased spot, including currencies purchased from the Stabilization Fund, and sold forward to the Stabilization Fund, up to $1 billion equivalent; (2) Currencies purchased spot or forward, up to the amounts necessary to fulfill other forward commitments; (3) Additional currencies purchased spot or forward, up to the amount necessary for System operations to exert a market influence but not exceeding $250 million equivalent; and (4) Sterling purchased on a covered or guaranteed basis in terms of the dollar, under agreement with the Bank of England, up to $300 million equivalent. C. To have outstanding forward commitments undertaken under Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN □ JUNE 1969 paragraph A above to deliver foreign currencies, up to the following limits: (1) Commitments to deliver foreign currencies to the Stabiliza­ tion Fund, up to the limit specified in paragraph 1B(1) above; (2) Commitments to deliver Italian lire, under special arrange­ ments with the Bank of Italy, up to $500 million equivalent; and (3) Other forward commitments to deliver foreign currencies, up to $550 million equivalent. D. To draw foreign currencies and to permit foreign banks to draw dollars under the reciprocal currency arrangements listed in paragraph 2 below, provided that drawings by either party to any such arrange­ ment shall be fully liquidated within 12 months after any amount outstanding at that time was first drawn, unless the Committee, be­ cause of exceptional circumstances, specifically authorizes a delay. 2. The Federal Open Market Committee directs the Federal Re­ serve Bank of New York to maintain reciprocal currency arrange­ ments (“swap” arrangements) for System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of arrangement Foreign bank (millions of dollars equivalent) Austrian National Bank............................................ 100 National Bank of Belgium........................................ 225 Bank of Canada......................................................... 1,000 National Bank of Denmark ...................................... 100 Bank of England......................................................... 2,000 Bank of France........................................................... 1,000 German Federal Bank ............................................... 1,000 Bank of Italy................................................................ 1,000 Bank of Japan............................................................. 1,000 Bank of Mexico......................................................... 130 Netherlands Bank....................................................... 400 Bank of Norway......................................................... 100 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 517 Amount of Foreign bank arrangement (millions of dollars equivalent) Bank of Sweden.......................................................... 250 Swiss National Bank................................................... 600 Bank for International Settlements: Dollars against Swiss francs ............................... 600 Dollars against authorized European currencies other than Swiss francs.................................. 1,000 Votes for this action: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against this action: None. With respect to the increase in the limit on outright holdings of foreign currencies, the System’s current holdings were close to the pre­ vious limit of $150 million. That limit had been established in 1963, at a time when the foreign exchange operations of the Federal Reserve had not yet assumed the scale of more recent years. The Committee concurred in the judgment of the Special Manager that more leeway was now desirable to permit acquisitions from time to time of foreign currencies that were likely to prove useful in future operations. The amendment to the introductory text of paragraph 1 consisted of the addition, after the words “to the extent necessary to carry out the Committee’s foreign currency directive,” of the phrase “and express authorizations by the Committee pursuant thereto.” This amendment was for the purpose of making clear that the language of the authoriza­ tion extended not only to operations undertaken under the specific language of the foreign currency directive but also to those undertaken under express authorities given by the Committee, for which provision was made at a number of points in the directive. The main amendment to paragraph IB involved a clarification of the form of authorization for foreign currency transactions undertaken in connection with System “warehousing” operations for the Stabiliza­ tion Fund. While the forward commitments associated with such ware- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

housing operations were separately authorized in paragraph 1C( 1), the spot holdings had been subsumed under general language in IB author­ izing holdings “up to the amounts necessary to fulfill outstanding for­ ward commitments.” As amended, the authorization contained a new paragraph 1B(1) separately covering the spot holdings in question. Concurrently, a number of other conforming and clarifying changes were made in IB and in 1C(1). The amendment to paragraph 2, which affected the table contained in that paragraph listing authorized swap arrangements, involved the incorporation of more precise descriptions of the System’s two swap arrangements with the Bank for International Settlements. 3. Review of continuing authorizations. This being the first meeting of the Federal Open Market Committee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1969, and their assumption of duties, the Committee followed its customary practice of reviewing all of its continuing authorizations and directives. The action taken with respect to the authorization for System foreign currency operations has been described in the preceding portion of the record for this date. The Committee reaffirmed its continuing authority directive for domestic open market operations and its foreign currency directive in the forms in which both were outstanding at the beginning of the year 1969. Votes for these actions: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against these actions: None. 518 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions MARGIN REQUIREMENTS extend for the purpose of purchasing and carrying certain securities traded over the counter (as dis­ REVISIONS OF REGULATIONS G, T, AND U tinguished from on national securities exchanges) Pursuant to section 7 of the Securities Exchange Act and (b) to permit brokers and dealers to extend of 1934 (15 U.S.C, 78g) as amended by an Act of credit (Regulation T) on such securities. Amend­ July 29, 1968 (82 Stat. 452), the Board of Gover­ ments to the regulations limiting the credit available nors has revised, effective July 8, 1969, its regula­ in connection with the purchase of so-called “equity tions governing margin requirements for securities funding” plans or programs are included in the revi­ transactions principally (a) to extend the coverage sions, although such amendments do not become of margin requirements to credit that banks (Regu­ operative until September 1, 1969. The texts of the lation U) and other lenders (Regulation G) may revised regulations are as follows: REGULATION G (12 CFR 207) Revised effective July 8,1969 SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS * SECTION 207.1—GENERAL RULE secured by collateral that includes any OTC margin stock4 and/or debt securities convertible into OTC (a) Registration. Every person who, in the ordi­ margin stock and no other margin security, such nary course of his business,1 during any calendar date shall be July 8, 1969, instead of October 20, quarter ended after October 20, 1967, extends or 1967. arranges for the extension of a total of 4150,000 or (b) Termination of registration. Any person so more or has outstanding at any time during the registered who has not, during the preceding 6 calen­ calendar quarter, a total of $100,000 or more, in dar months, extended or arranged for the extension credit, secured directly or indirectly,3 in whole or in or maintenance of or had outstanding any credit part, by collateral that includes any margin securi­ secured directly or indirectly, in whole or in part, by ties,3 unless such person is subject to Part 220 collateral that includes any margin securities may (Regulation T) or Part 221 (Regulation U) of this apply for termination of such registration by filing Chapter, is subject to the registration requirements Federal Reserve Form G-2 with the Federal Re­ of this paragraph and shall, within 30 days following serve Bank of the district in which the principal the end of the calendar quarter during which the office of such person is located. A registration shall person becomes subject to such registration require­ be deemed terminated when such application is ap­ ments, register with the Board of Governors of the proved by the Board of Governors of the Federal Federal Reserve System by filing a statement in con­ Reserve System. formity with the requirements of Federal Reserve (c) Definition of lender and applicability of mar­ Form G-l with the Federal Reserve Bank of the gin requirements. Any person subject to the regis­ district in which the principal office of such person tration requirements of paragraph (a) of this section is located: Provided, That in the case of credit so who, in the ordinary course of his business, extends or maintains or arranges for the extension or main­ * This text corresponds to the Code of Federal Regula­ tions, Title 12, Chapter II, Part 207, cited as 12 CFR 207. tenance of any credit for the purpose of purchasing The words “this part” as used herein, mean Regulation G. or carrying any margin security (hereinafter called ’See § 207.2(b). “See § 207.2(i). ‘See § 207.2(f). “OTC stock” is stock which is traded 3 See § 207.2(d). “over the counter.” 519 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

520 FEDERAL RESERVE BULLETIN □ JUNE 1969 “purpose credit”), if such credit is secured directly duced by an amount equal to the maximum loan or indirectly, in whole or in part, by collateral that value of the security withdrawn. includes any such security, is a “lender’’ subject to (e) Statements as to purpose of credit. (1) In con­ this part and shall not after February 1, 1968, ex­ nection with any extension of credit secured directly cept as provided in § 207.4(a), extend or arrange or indirectly, in whole or in part, by collateral that for the extension of any purpose credit in an amount includes any margin security, every person who is exceeding the maximum loan value of the collateral, subject to the registration requirement of paragraph as prescribed from time to time for margin securi­ (a) of this section shall, prior to such extension, ob­ ties in § 207.5 (the Supplement to Regulation G), tain a statement in conformity with the requirements or as determined by the lender in good faith for any of Federal Reserve Form G-3 executed by the cus­ collateral other than margin securities: Provided, tomer and executed and accepted in good faith by That credit extended before July 8, 1969, for the such person. Such person shall retain such statement purpose of purchasing or carrying OTC margin in his records for at least 3 years after such credit stock and/or debt securities convertible into such is extinguished. In determining whether credit is stock shall not be deemed to be purpose credit: And “purpose credit”, such person may rely on the state­ provided further, That any collateral consisting of ment executed by the customer if accepted in good convertible securities described in paragraph (d) of faith. To accept the customer’s statement in good this section shall have loan value only as provided faith, such person must (i) be alert to the circum­ in that paragraph. stances surrounding the credit and (ii) if he has any (d) Credit on convertible debt securities. (1) A further information which would cause a prudent lender may extend credit for the purpose specified man not to accept the statement without inquiry, in paragraph (c) of this section on collateral con­ have investigated and be satisfied that the customer’s sisting of any debt security (i) convertible with or statement is truthful. without consideration, presently or in the future, (2) Circumstances which could indicate that into a margin security or (ii) carrying any warrant such person has not exercised reasonable diligence or right to subscribe to or purchase such a margin in so investigating and so satisfying himself would security (such a convertible debt security is some­ include, but are not limited to, facts such as that (i) times referred to herein as a “convertible security”). the proceeds of the credit were paid to a broker or to a bank in connection with contemporaneous de­ (2) Credit extended under this paragraph shall livery of margin securities, whether or not payment be subject to the same conditions as any other credit was made against delivery, (ii) there were frequent subject to this section except: (i) the entire amount substitutions of margin securities serving as collateral of such credit shall be considered a single credit for the credit, or (iii) the amount of the credit was treated separately from the single credit specified in disproportionate, or the terms inappropriate, to the paragraph (g) of this section and all the collateral stated purpose. securing such credit shall be considered in determin­ (f) Credit extended to person subject to Regula­ ing whether or not the credit complies with this part, tion T. (1) No lender shall extend or maintain any and (ii) the maximum loan value of the collateral credit for the purpose of purchasing or carrying any shall be as prescribed from time to time in margin security to any customer who is subject to § 207.5(b) (the Supplement to Regulation G). Part 220 of this Chapter (Regulation T) without (3) Any convertible security originally eligible collateral or on collateral consisting of margin secu­ as collateral for credit extended under this paragraph rities (other than exempted securities ’). Where the shall be treated as such as long as continuously held credit is to be used in the ordinary course of busi­ as collateral for such credit even though it ceases to ness of such customer, such credit is presumed to be convertible or to carry warrants or rights. be for the purpose of purchasing or carrying margin (4) In the event that any margin security other securities unless the lender has in his records a than a convertible security is substituted for a con­ statement to the contrary obtained and executed in vertible security held as collateral for credit extended conformity with the requirements of paragraph (e) under this section, such margin security and any of this section. credit extended on it in compliance with this part (2) The prohibition of this paragraph (f) shall shall thereupon be treated as subject to paragraph not apply to credit which is unsecured or secured by (c) of this section and not to this paragraph and the credit extended under this paragraph shall be re­ "As defined in 15 U.S.C. 78c(a)(12). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 521 collateral other than margin securities, and which is have any loan value in respect to such credit for the (i) made to a dealer" to aid in the distribution of purpose of this part: Provided, however, That a securities to customers not through the medium of share account or other claim acquired by the cus­ a national securities exchange, or (ii) subordinated tomer from the lender independently of the credit to the claims of general creditors by a subordination and payable (or entitling the holder to a loan there­ agreement approved by an appropriate committee on) in a dollar amount determined without regard of a national securities exchange or by a “satisfac­ to the market value of the assets supporting the tory subordination agreement” as defined in para­ claim shall have a maximum loan value as deter­ graph (c)(7) of Rule 15c3-l of the Securities and mined by the lender in good faith. Exchange Commission (17 CFR 240.15c3-l(c) (j) Withdrawals and substitutions of collateral. (7)). (1) General rule. Except as permitted by the next (g) Combining purpose credit extended to the subparagraph and by § 207.4(a), while a lender same customer. For the purpose of this part, except maintains any purpose credit extended after Feb­ for a credit subject to paragraph (d) of this section ruary 1, 1968, the lender shall not at any time per­ and § 207.4(a)(2), the aggregate of all outstanding mit any withdrawal or substitution of collateral un­ purpose credit extended to a customer by a lender less either (i) the credit would not exceed the after February 1, 1968, shall be considered a single maximum loan value of the collateral after such credit and, except as provided in paragraphs (d) withdrawal or substitution, or (ii) the credit is and (i) of this section, all the collateral securing reduced by at least the amount by which the maxi­ such a credit, whether directly or indirectly, in whole mum loan value of any collateral deposited is less or in part, shall be considered in determining than the “retention requirement” of any collateral whether the credit complies with this part. withdrawn. The retention requirement of collateral (h) Purpose and nonpurpose credit extended to other than margin securities is the same as its maxi­ the same person. No lender shall after February 1, mum loan value and the retention requirement of 1968, extend or arrange for the extension of any collateral consisting of margin securities or debt purpose credit, or maintain or arrange for the securities convertible into margin securities is pre­ maintenance of any purpose credit extended after scribed from time to time in § 207.5 (the Supple­ February 1, 1968, if the credit is secured directly ment to Regulation G). or indirectly, in whole or in part, by collateral that (2) Same-day substitution of collateral. Except includes any margin security which also secures, as prohibited by § 207.4(a) a lender may permit a directly or indirectly, in whole or in part, any other substitution of margin securities effected by a pur­ credit in excess of $5,000 extended to the same cus­ chase and sale on orders executed within the same tomer after February 1, 1968; and no lender shall day: Provided, That (i) if the proceeds of the sale have outstanding at the same time to the same cus­ exceed the total cost of the purchase, the credit is tomer both such purpose credit and any such other reduced by at least an amount equal to the retention credit: Provided, That the prohibitions of this para­ requirement in respect to the sale less the reten­ graph shall not apply to (i) credit extended for the tion requirement in respect to the purchase, or (ii) purpose of purchasing, constructing, maintaining, or if the total cost of the purchase exceeds the pro­ improving a dwelling which is occupied or to be ceeds of the sale, the credit may be increased by an occupied by the customer as his principal residence amount no greater than the maximum loan value of when such credit is secured by a first lien on such the securities purchased less the maximum loan dwelling; or (ii) credit secured by a share account value of the securities sold. If the maximum loan or other claim acquired by the customer from the value of the collateral securing the credit has become lender independently of the credit and payable (or less than the amount of the credit, the amount of entitling the holder to a Ioan thereon) in a dollar the credit may nonetheless be increased if there is amount determined without regard to the market provided additional collateral having maximum loan value of the assets supporting the claim. value at least equal to the amount of increase, or (i) Purpose credit secured both by margin securi­ the credit is extended pursuant to § 207.4(a). ties and by other collateral. In the case of any pur­ pose credit extended or arranged after February 1, SECTION 207.2—DEFINITIONS 1968, secured directly or indirectly, in whole or in For the purpose of this part, unless the context part, by any margin security, no other collateral shall otherwise requires: 6 As defined in 15 U.S.C. 78c(a) (5). (a) Terms herein have the meanings given them Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

522 FEDERAL RESERVE BULLETIN □ JUNE 1969 in section 3(a) of the Securities Exchange Act of to the extent necessary to render lawful any direct 1934 (15 U.S.C. 78c(a)). or indirect extension or maintenance of credit on (b) The term “in the ordinary course of his busi­ such security. ness” means occurring or reasonably expected to (f) OTC margin stock. (1) The term “OTC occur from time to time in the course of any activity margin stock” means stock not traded on a national of a person for profit or the management and pres­ securities exchange with the Board of Governors of ervation of property or in addition, in the case of a the Federal Reserve System has determined to have person other than an individual, carrying out or in the degree of national investor interest, the depth and furtherance of any business purpose. breadth of market, the availability of information respecting the stock and its issuer, and the character (c) The "purpose” of a credit is determined by and permanence of the issuer to warrant subjecting substance rather than form. such security to the requirements of this part. (1) Credit which is for the purpose, whether (2) The Board will from time to time publish a immediate, incidental, or ultimate, of purchasing or list of OTC margin stocks as to which the Board has carrying a margin security is “purpose credit”, de­ made the determinations described in subparagraph spite any temporary application of funds otherwise. (1) of this paragraph (f). Except as provided in (2) Credit to enable the customer to reduce or subparagraph (4) of this paragraph (f), such stocks retire indebtedness which was originally incurred to shall meet the requirements of § 207.5(d) (the purchase a margin security is for the purpose of Supplement to Regulation G). “carrying” such a security. (3) The Board shall from time to time remove (3) An extension of credit provided for in a from the list described in subparagraph (2) of this plan, program, or investment contract offered or paragraph (f) stocks that cease to: sold or otherwise initiated after August 31, 1969, (i) Exist or of which the issuer ceases to exist, or which provides for the acquisition both of any se­ (ii) Meet substantially the provisions of sub­ curities described in paragraph (d) of this section paragraph (1) of this paragraph (f) and § 207.5(d) and of goods, services, property interests, other se­ (the Supplement to Regulation G). curities, or investments, is “purpose credit.” (4) The foregoing notwithstanding, the Board (d) Margin security. The term “margin security” may, upon its own initiative, or upon application by means any equity security7 which is (1) a regis­ any interested party, omit or remove any stock that tered equity security, (2) an OTC margin stock, is not traded on a national securities exchange from (3) a debt security (i) convertible with or without or add any such stock to such list of OTC margin consideration, presently or in the future, into a mar­ stocks, if in the judgment of the Board such action gin security, or (ii) carrying any warrant or right to is necessary or appropriate in the public interest. subscribe to or purchase, presently or in the future, (5) It shall be unlawful for any person to make, a margin security, (4) any such warrant or right, or cause to be made, any representation to the effect (5) a security issued by an investment company, that the inclusion of a security on such list of OTC other than a small business investment company margin stocks is evidence that the Board or the Se­ licensed under the Small Business Investment Com­ curities and Exchange Commission has in any way pany Act of 1958 (15 U.S.C. 661), registered pur­ passed upon the merits of, or given approval to, suant to section 8 of the Investment Company Act such security or any transaction therein. Any state­ of 1940 (15 U.S.C. 80a-8), unless at least 95 per ment in an advertisement or other similar communi­ cent of the assets of such company are continuously cation containing a reference to the Board in con­ invested in exempted securities.8 nection with such stocks or such list shall constitute (e) Registered equity security. The term "regis­ such an unlawful representation. tered equity security” means any equity security (g) Purchase and sale. (1) The term “purchase” which (1) is registered on a national securities ex­ includes any contract to buy, purchase, or other­ change, (2) has unlisted trading privileges on a wise acquire. national securities exchange, or (3) is exempted by (2) The term “sale” includes any contract to the Securities and Exchange Commission from the sell or otherwise dispose of. operation of section 7(c)(2) of the Securities Ex­ (h) The term “customer” includes any recipient change Act of 1934 (15 U.S.C. 78g(c)(2)) only of the credit to whom credit is extended directly or 7As defined in 15 U.S.C. 78c(a)(ll). indirectly for the use of the customer, and also 8As defined in 15 U.S.C. 78c(a)(12). includes any person engaged in a joint venture, or Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 523 as a member of a syndicate or a group, with the tained by a corporation, by a lender wholly con­ customer with respect to a purpose loan. trolled and (except in the case of a lender formed (i) The term “indirectly secured” includes, ex­ prior to February 1, 1968, or a trustee) wholly cept as provided in § 207.4(a) (3), any arrangement owned by such corporation, or by a lender which with the customer under which the customer’s right is a membership thrift organization whose member­ or ability to sell, pledge, or otherwise dispose of ship is limited to employees and former employees margin securities owned by the customer is in any of such corporation, its subsidiaries, or affiliates way restricted as long as the credit remains out­ (such corporations and such lenders are both some­ standing, or under which the exercise of such right, times referred to as “plan-lenders”), to an officer whether by written agreement or otherwise, is or or employee of the corporation, subsidiary, or affili­ may be cause for acceleration of the maturity of ate thereof to finance the exercise of rights granted the credit: Provided, That the foregoing shall not such officer or employee under a stock option plan apply (1) if such restriction arises solely by virtue or employee stock purchase plan adopted by the of an arrangement with the customer which pertains corporation and approved by a majority of its stock­ generally to the customer’s assets unless a substan­ holders to purchase margin securities of such cor­ tial part of such assets consists of margin securities, poration, subsidiary, or affiliate, or (2) if the lender in good faith has not relied upon (1) Sections 207.1(c), (d), (f), (g), (h), (i), such securities as collateral in the extension or main­ and (j) of this part shall not apply (i) to any such tenance of the particular credit: And provided credit extended prior to February 1, 1968, to finance further, That the foregoing shall not apply to stock the exercise of such rights granted to any named held by the lender only in the capacity of custodian, officer or employee and effectively exercised by such depositary, or trustee, or under similar circum­ officer or employee prior to February 1, 1969 (with stances, if the lender in good faith has not relied respect to credit extended to purchase OTC margin upon such securities as collateral in the extension or stock or debt securities convertible into such stock, maintenance of the particular credit. such dates shall be July 8, 1969, and July 8, 1970, (j) The term “stock” includes any security com­ respectively), (ii) to any credit extended prior to monly known as a stock; any voting trust certificate February 1, 1969, to a plan-lender pursuant to a or other instrument representing such a security; bona fide written commitment in existence on Feb­ any security convertible with or without considera­ ruary 1, 1968, to finance the exercise of such rights tion into such security, certificate, or other instru­ and by such plan-lender from the proceeds of such ment, or carrying any warrant or right to subscribe credit to any officer or employee to finance the exer­ to or purchase such a security; or any such warrant cise of rights granted pursuant to a stock purchase or right. plan under which the exercise price does not exceed 50 per cent of the market value of the stock subject SECTION 207.3—REPORTS AND RECORDS to purchase, valued as of the offering date thereof, or (iii) to any credit extended by a plan-lender pur­ (a) Every person who is registered pursuant to suant to a stock purchase plan or stock option which § 207.1 (a) of this part shall within 30 days follow­ is qualified or restricted under Internal Revenue ing the end of each succeeding calendar quarter file Code § § 422, 423, or 424, to finance the exercise a report on Federal Reserve Form G-4 with the of such rights granted prior to February 1, 1968. Federal Reserve Bank of the district in which the (2) The restrictions imposed by § 207.1(c) and principal office of the lender is located. (d) and § 207.5 (the Supplement to Regulation G) (b) Every person who has registered pursuant on the maximum loan value of margin securities to § 207.1(a) of this part shall maintain such serving as collateral for purpose credit shall not records as shall be prescribed by the Board of Gov­ apply to securities purchased, and serving as direct ernors of the Federal Reserve System to enable it to or indirect collateral for credit extended, pursuant to perform the functions conferred upon it by the Se­ such a plan: Provided, That curities Exchange Act of 1934 (15 U.S.C. 78). (i) The entire amount of credit extended to any officer or employee pursuant to this subparagraph SECTION 207.4—MISCELLANEOUS (2) in connection with the exercise of rights under PROVISIONS such plan or plans shall be considered a single credit; (a) Stock option and employee stock purchase (ii) At the time when credit is extended in con­ plans. In respect to any credit extended and main­ nection with a plan subject to this subparagraph, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

524 FEDERAL RESERVE BULLETIN a JUNE 1969 (a) the plan-lender computes the “deficiency”— to such security: And provided further, That the the amount by which the credit exceeds the maxi­ amount of the credit does not exceed the total mum loan value of the collateral as prescribed by amount of credit currently extended by such plan­ § 207.5 (the Supplement to Regulation G), and lender pursuant to such plan. (b) the agreement under which the credit is ex­ (b) Extensions and renewals. The renewal or tended provides that, except as permitted by the extension of maturity of a credit need not be proviso in subdivision (iii) of this subparagraph, the treated as the extension of a credit if the amount officer or employee shall, in respect to such defi­ of the credit is not increased except by the addition ciency, for at least 3 years from the extension of of interest or service charges on the credit or of the credit, make equal repayments to the plan-lender taxes on transactions in connection with the credit. at least quarterly and equivalent to at least 20 per (c) Reorganization or recapitalization. Nothing cent of such deficiency per annum, or such lesser in this part shall be construed to prohibit with­ amount as the Board of Governors of the Federal drawal or substitution of securities to enable a Reserve System, upon application, may permit; customer to participate in a reorganization or re­ (iii) The officer or employee is not permitted capitalization. under such plan or credit agreement to sell, with­ (d) Mistakes in good faith. Failure to comply draw, pledge, or otherwise dispose of all or any with this part due to a mechanical mistake made part of such collateral until (a) all repayments have in good faith in determining, recording, or cal­ been made for at least the 3-year period provided in culating any credit, balance, market price, or loan subdivision (ii) of this subparagraph and the defi­ value, or other similar mechanical mistake, shall ciency has been repaid, or (i) as a result of the re­ not constitute a violation of this part if promptly payments described in subdivision (ii) of this sub­ after discovery of the mistake the lender takes paragraph, and/or of a change in the current market whatever action is practicable to remedy the non­ value of the collateral, the maximum loan value of compliance. the collateral, as prescribed by § 207.5 (the Supple­ ment to Regulation G), is at least equal to the credit (e) Arranging for credit. A lender may arrange which remains owing from the officer or employee for the extension or maintenance of credit by any to the plan-lender, whichever shall occur first: Pro­ person upon the same terms and conditions as vided, That this restriction need not apply where those upon which the lender, under the provisions such collateral is required to be sold to meet emer­ of this part, may himself extend or maintain such gency expenses arising from circumstances not rea­ credit, but only upon such terms and conditions, sonably foreseeable at the time of the extension of except that this limitation shall not apply with the credit (for this purpose such emergency expenses respect to the arranging by a lender for a bank shall include the death, disability, or involuntary subject to Part 221 of this Chapter (Regulation U) termination of employment of the officer or em­ to extend or maintain credit on margin securities ployee or some other change in his circumstances, or exempted securities. involving extreme hardship, not reasonably foresee­ (f) Combined purchase of mutual funds and able at the time the credit is extended. The oppor­ insurance. An extension of purpose credit provided tunity to realize monetary gain is not a “change in for in a plan, program, or investment contract, his circumstances” for this purpose); and registered with the Securities and Exchange Com­ (iv) At such time as either of the conditions with mission under the Securities Act of 1933 (15 respect to sale, withdrawal, pledge, or other disposi­ U.S.C. 77), which provides for the acquisition both tion of collateral specified in subdivision (iii) of this of a security issued by an investment company subparagraph are satisfied the credit is thereafter described in paragraph (d)(5) of § 207.2 and an treated as a credit subject to all the requirements of insurance policy or contract, shall be subject to all this part. the provisions of this part except that where the (3) No extension of credit to a plan-lender to credit is secured by the security and does not ex­ finance such a plan shall be deemed to be indirectly ceed the premiums on such policy (plus any secured by a margin security purchased pursuant applicable interest), the maximum loan value of to the plan: Provided, That such security is not repledged by the plan-lender to secure such exten­ such security shall be 40 per cent of its current sion of credit to the plan-lender and in no event market value, as determined by any reasonable does the person extending such credit have recourse method. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 525 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO REGULATION G Effective July 8, 1969 SECTION 207.5—SUPPLEMENT offers for such stock for their own accounts, or the stock is registered on a securities exchange that is (a) Maximum loan value of margin securities. exempted by the Securities and Exchange Commis­ For the purpose of § 207.1, the maximum loan sion from registration as a national securities ex­ value of any margin security, except convertible change pursuant to section 5 of the Securities and securities subject to § 207.1(d), shall be 20 per Exchange Act of 1934 (15 U.S.C. 78e), cent of its current market value, as determined by (3) There are 1,500 or more holders of record of any reasonable method. the stock who are not officers, directors, or benefi­ (b) Maximum loan value of convertible debt cial owners of 10 per cent or more of the stock, securities subject to § 207.1(d). For the purpose of (4) The issuer is organized under the laws of § 207.1, the maximum loan value of any security the United States or a State 0 and it, or a prede­ against which credit is extended pursuant to cessor in interest, has been in existence for at least § 207.1 (d) shall be 40 per cent of its current mar­ 3 years, ket value, as determined by any reasonable method. (5) The stock has been publicly traded for at (c) Retention requirement. For the purpose of § 207.1, in the case of a loan which would exceed least 6 months, and the maximum loan value of the collateral following (6) Daily quotations for both bid and asked a withdrawal of collateral, the “retention require­ prices for the stock are continuously available to ment” of a margin security and of a security against the general public; which credit is extended pursuant to § 207.1(d) and shall meet 3 of the 4 additional require­ shall be 70 per cent of its current market value, as ments that: determined by any reasonable method. (7) There are 500,000 or more shares of such (d) Requirements for inclusion on list of OTC stock outstanding in addition to shares held bene­ margin stock. Except as provided in subparagraph ficially by officers, directors, or beneficial owners of (4) of § 207.2(f), such stock shall meet the re­ more than 10 per cent of the stock, quirements that: (8) The shares described in subparagraph (7) (1) The stock is subject to registration under of this paragraph have a market value in the aggre­ § 12(g)(1) of the Securities Exchange Act of 1934 gate of at least $10 million, (15 U.S.C. 781(g)(1)), or if issued by an insur­ (9) The minimum average bid price of such ance company subject to § 12(g)(2)(G) (15 stock, as determined by the Board in the latest U.S.C. 781(g)(2)(G)) the issuer had at least $1 month, is at least $10 per share, and million of capital and surplus, (10) The issuer had at least $5 million of capi­ (2) Five or more dealers stand willing to, and tal, surplus, and undivided profits. do in fact, make a market in such stock including making regularly published bona fide bids and "As defined in 15 U.S.C. 78c(a)(16). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

526 FEDERAL RESERVE BULLETIN □ JUNE 1969 REGULATION T (12 CFR 220) Revised effective July 8,1969 CREDIT BY BROKERS AND DEALERS * SECTION 220.1—SCOPE OF PART and (2) includes, but is not limited to (i) in case the creditor is a firm, any partner in the firm who This part is issued by the Board of Governors of would be considered a customer of the firm if he the Federal Reserve System (hereinafter called the were not a partner, and (ii) any joint venture in “Board”) pursuant to the Securities Exchange Act which a creditor participates and which would be of 1934 (called the “Act” in this part), particularly considered a customer of the creditor if the creditor sections 7 and 8(a) thereof (15 U.S.C. 78g, were not a participant. 78h(a), as amended), and applies to every broker (d) The term “registered security” means any or dealer, including every member of a national security which (1) is registered on a national secu­ securities exchange. rities exchange; or (2) in consequence of its hav­ ing unlisted trading privileges on a national securi­ SECTION 220.2—DEFINITIONS ties exchange is deemed, under the provisions of For the purposes of this part, unless the context section 12(f) of the Act (15 U.S.C. 78/), to be otherwise requires: registered on a national securities exchange; or (a) The terms herein have the meanings given (3) is exempted by the Securities and Exchange them in section 3(a) of the Act (15 U.S.C. Commission from the operation of section 7(c)(2) 78c(a)). of the Act (15 U.S.C. 78g(c)(2)) only to the ex­ (b) The term “creditor” means any broker or tent necessary to render lawful any direct or in­ dealer including every member of a national secu­ direct extension or maintenance of credit on such rities exchange. security or any direct or indirect arrangement (c) The term “customer” (1) includes any therefor which would not have been unlawful if person, or any group of persons acting jointly, (i) such security had been a security (other than an to or for whom a creditor is extending, arranging, exempted security) registered on a national securi­ or maintaining any credit, or (ii) who, in ac­ ties exchange. cordance with the ordinary usage of the trade, (e) (1) The term “OTC margin stock” 1 means would be considered a customer of the creditor, stock not traded on a national securities exchange which the Board of Governors of the Federal Re- * This text corresponds to the Code of Federal Regula­ tions, Title 12, Chapter II, Part 220, cited as 12 CFR 220. 1 “OTC stock” hereinafter refers to stock traded “over The words "this part," as used herein, mean Regulation T. the counter.” Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 527 serve System has determined to have the degree of security other than an equity security! or an national investor interest, the depth and breadth of exempted security. market, the availability of information respecting the stock and its issuer, and the character and per­ SECTION 220.3—GENERAL ACCOUNTS manence of the issuer to warrant subjecting such (a) Contents of general account. All financial stock to the requirements of this part. relations between a creditor and a customer, (2) The Board will from time to time publish a whether recorded in one record or in more than list of OTC margin stock as to which the Board one record, shall be included in and be deemed to has made the determinations described in subpara­ be part of the customer’s general account with the graph (1) of this paragraph (e). Except as pro­ creditor, except that the relations which § 220.4 vided in subparagraph (4) of this paragraph (e), permits to be included in any special account pro­ such stocks shall meet the requirements of § 220.8 vided for by that section may be included in the ap­ (g) (the Supplement to Regulation T). propriate special account, and all transactions in (3) The Board will from time to time remove commodities, and, except to the extent provided in from the list described in subparagraph (2) of this paragraph (b)(2) of § 220.3, all transactions in paragraph (e) stocks that cease to: non-equity securities, exempted securities, and in (i) Exist or of which the issuer ceases to exist, other securities having no loan value in a general or account under the provisions of § 220.3(c) and (ii) Meet substantially the provisions of sub­ § 220.8 (the Supplement to Regulation T) (except paragraph (1) of this paragraph (e) and of § 220.8 unissued securities, short sales and purchases to (g) (the Supplement to Regulation T). cover short sales, securities positions to offset short (4) The foregoing notwithstanding, the Board sales, contracts involving an endorsement or guaran­ may, upon its own initiative or upon application tee of any put, call, or other option), shall be in­ by any interested party, omit or remove any stock cluded in the appropriate special account provided that is not traded on a national securities exchange for by § 220.4. During any period when such from or add any such stock to such list of OTC § 220.8 specifies that margin equity securities shall margin stocks if in the judgment of the Board, have no loan value in a general account or special such action is necessary or appropriate in the pub­ convertible debt security account (sometimes re­ lic interest. ferred to herein as “special convertible security (5) It shall be unlawful for any creditor to account”) subject to § 221.4(j), any transaction make, or cause to be made, any representation to consisting of a purchase of a security other than a the effect that the inclusion of a security on such purchase of a security to reduce or close out a list of OTC margin stocks is evidence that the short position shall be effected in the special cash Board or the Securities and Exchange Commission account provided for by § 220.4(c) or in some has in any way passed upon the merits of, or given other appropriate special account provided for by approval to, such security or any transaction there­ § 220.4. in. Any statement in an advertisement or other simi­ (b) General rule. (I) A creditor shall not effect lar communication containing a reference to the for or with any customer in a general account, Board in connection with such stocks or such list special bond account subject to § 220.4(i), or spe­ shall constitute such an unlawful representation. cial convertible security account any transaction (f) The term “margin security” means any which, in combination with the other transactions registered security or OTC margin stock. effected in such account on the same day, creates (g) The term “exempted security” has the an excess of the adjusted debit balance of such meaning given it in section 3(a) of the Act (15 account over the maximum loan value of the U.S.C. 78c(a)(12)), except that the term does securities in such account, or increases any such not include a security which is exempted by the excess, unless in connection therewith the creditor Securities and Exchange Commission from the obtains, as promptly as possible and in any event operation of section 7(c) (2) of the Act (15 U.S.C. before the expiration of 5 full business days follow­ 78g(c) (2)) only to the extent described in para­ ing the date of such transaction, the deposit into graph (d)(3) of this section. such account of cash or securities in such amount (h) The term “non-equity security” means any that the cash deposited plus the loan value of the securities deposited equals or exceeds the excess so *As defined in 15 U.S.C. 78c(a)(ll). created or the increase so caused. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

528 FEDERAL RESERVE BULLETIN o JUNE 1969 (2) Except as permitted in this subparagraph, bond account, or special convertible security ac­ no withdrawal of cash or exempted or margin count and the adjusted debit balance of such securities shall be permissible if the adjusted debit account are provided in paragraphs (c) and (d) of balance of the account (whether the general this section, and certain modifications of and ex­ account, the special bond account, or the special ceptions to the general rule stated in this paragraph convertible security account) would exceed the are provided in the subsequent paragraphs of this maximum loan value of the securities in such section and in § 220.6. account after such withdrawal. The exceptions are (c) Maximum loan value and current market available only in the event no cash or securities value. (1) The maximum loan value of the securi­ need to be deposited in such account in connec­ ties in a general account, special bond account, or tion with a transaction on a previous day and none special convertible security account is the sum of would need to be deposited thereafter in connec­ the maximum loan values of the individual securi­ tion with any withdrawal of cash or securities on ties in such account, including securities (other the current day. The permissible exceptions are (i) than unissued securities) bought for such account registered non-equity securities or exempted securi­ but not yet debited thereto, but excluding securities ties held in the general account on March 11, sold for such account whether or not payment has 1968, and continuously thereafter may be with­ been credited thereto. drawn upon the deposit in the account of cash (2) Except as otherwise provided in this para­ (or margin equity securities counted at their maxi­ graph, the maximum loan value of a security in a mum loan value) at least equal to the “retention general account, special bond account, or special requirement” of such withdrawn securities, or (ii) convertible security account shall be such maxi­ except as provided in (i) of this subparagraph, mum loan value as the Board shall prescribe from securities having loan value in the general account, time to time in § 220.8 (the Supplement to Regula­ the special bond account, or the special convertible tion T). No collateral other than an exempted security account may be withdrawn upon the de­ security or a registered non-equity security held in posit in such account of cash or securities having such account on March 11, 1968, and continuously loan value in such account counted at the maxi­ thereafter, or margin equity security shall have any mum loan value at least equal to the “retention re­ loan value in a general account except that a quirement” of those securities, or (iii) cash may be margin equity security eligible for a special con­ withdrawn upon the deposit in the general account, vertible security account pursuant to § 220.4(j) the special bond account, or the special convertible shall have loan value in a general account only if security account of securities having a maximum held in the account on March 11, 1968, and con­ loan value in such account at least equal to the tinuously thereafter. amount of cash withdrawn, or (iv) upon the sale (3) A warrant or certificate which evidences (other than the short sale) of securities having only a right to subscribe to or otherwise acquire loan value in the general account, special bond any security and which expires within 90 days of account, or special convertible security account issuance shall have no loan value in a general there may be withdrawn in cash an amount equal account, special bond account, or special con­ to the difference between the current market value vertible security account; but, if the account con­ of the securities sold and the “retention require­ tains the security to the holder of which such ment” of such securities, or (v) upon the sale warrant or certificate has been issued and such (other than the short sale) of a registered non­ warrant or certificate is held in an appropriate equity security or an exempted security that was account maintained by the creditor for the cus­ held in the general account on March 11, 1968, tomer the current market value of such security (if and continuously thereafter there may be with­ such security is a margin security) shall, for the drawn in cash an amount equal to the difference purpose of calculating its maximum loan value, be between the current market value of the securities increased by the current market value of such sold and the “retention requirement” of those warrant or certificate. securities as prescribed in § 220.8 (the Supplement (4) For the current market value of a security to Regulation T). throughout the day of its purchase or sale, the (3) Rules for computing the maximum loan creditor shall use its total cost or the net proceeds value of the securities in a general account, special of its sale, as the case may be, and at any other Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 529 time shall use the closing sale price of the security ing rule and the supplementary rules prescribed in on the preceding business day as shown by any § 220.6(a) and (b). regularly published reporting or quotation service. (e) Liquidation in lieu of deposit? In any case In the absence of any such closing sale price, the in which the deposit required by paragraph (b) of creditor may use any reasonable estimate of the this section, or any portion thereof, is not obtained market value of such security as of the close of by the creditor within the 5-day period specified business on such preceding business day. therein, margin non-exempted securities shall be (d) Adjusted debit balance. For the purpose of sold (or, to the extent that there are insufficient this part, the adjusted debit balance of a general margin non-exempted securities in the general ac­ account, special bond account, or special con­ count, special bond account, or special convertible vertible security account shall be calculated by security account other liquidating transactions shall taking the sum of the following items: be effected in such account), prior to the expiration (1) the net debit balance, if any, of such of such 5-day period, in such amount that the re­ account; sulting decrease in the adjusted debit balance of such (2) the total cost of any securities (other than account exceeds, by an amount at least as great as unissued securities) bought for such account but such required deposit or the undeposited portion not yet debited thereto; thereof, the “retention requirement’’ of any margin (3) the current market value of any securities or exempted securities sold: Provided, That a credi­ (other than unissued securities) sold short in the tor is not required to sell securities or to effect other general account plus, for each security (other liquidating transactions specified by this paragraph than an exempted security), such amount as the in an amount greater than necessary to eliminate the Board shall prescribe from time to time in § 220.8 excess of the adjusted debit balance of such account (the Supplement to Regulation T) as the margin over the maximum loan value of the securities required for such short sales, except that such remaining in such account after such liquidation. amount so prescribed in such § 220.8 need not be (f) Extensions of time. In exceptional cases, the included when there are held in the general account 5-day period specified in paragraph (b) of this sec­ the same securities or securities exchangeable or tion may, on application of the creditor, be extended convertible within 90 calendar days, without re­ for one or more limited periods commensurate with striction other than the payment of money, into the circumstances (1) by any regularly constituted such securities sold short; committee of a national securities exchange having (4) the amount of margin specified by paragraph jurisdiction over the business conduct of its mem­ (h) of this section for every net commitment in such bers, of which exchange the creditor is a member or account in unissued securities, plus all unrealized through which his transactions are effected, or (2) losses on each commitment in unissued securities in instances where the procedure described above is and minus all unrealized gains (not exceeding the not readily available or appropriate, by a committee required margin) on each commitment in unissued of a national securities association: Provided, That securities; and such committee is satisfied that the creditor is act­ (5) the amount of any margin customarily re­ ing in good faith in making the application and that quired by the creditor in connection with his en­ the circumstances are in fact exceptional and war­ dorsement or guarantee of any put, call, or other rant such action. option; (g) Transactions on given day. For the purposes and deducting there from the sum of the following of paragraph (b) of this section, the question of items: whether or not an excess of the adjusted debit bal­ (6) the net credit balance, if any, of such ac­ ance of a general account, special bond account, or count; and special convertible security account over the maxi­ (7) the net proceeds of sale of any securities mum loan value of the securities in such account is (other than unissued securities) sold for such ac­ created or increased on a given day shall be detercount but for which payment has not yet been 3 This requirement relates to the action to be taken when credited thereto. a customer fails to make the deposit required by § 220.3(b), In case such account is the account of a partner of and it is not intended to countenance on the part of cus­ the creditor or the account of a joint venture in tomers the practice commonly known as “free-riding,” to prevent which the principal national securities exchanges which the creditor participates, the adjusted debit have adopted certain rules. See the rules of such exchanges balance shall be computed according to the forego­ and § 220.7(e). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

530 FEDERAL RESERVE BULLETIN □ JUNE 1969 mined on the basis of all the transactions in the to be included in the adjusted debit balance of such account on such day exclusive of any deposit of account, at the time of and in connection with the cash, deposit of securities, covering transaction, or purchase of the unissued security. other liquidation that has been effected on such day, SECTION 220.4—SPECIAL ACCOUNTS pursuant to the requirement of paragraphs (b) or (e) of this section, in connection with a transaction (a) General rule. (1) Pursuant to this section, a on a previous day. In any case in which an excess creditor may establish for any customer one or more so created, or increase so caused, by transactions on special accounts. a given day does not exceed $100, the creditor need (2) Each such special account shall be recorded not obtain the deposit specified therefor in subpara­ separately and shall be confined to the transactions graph (b)(1) of this section. Any transaction which and relations specifically authorized for such ac­ serves to meet the requirements of paragraph (e) of count by the appropriate paragraph of this section this section or otherwise serves to permit any off­ and to transactions and relations incidental to those setting transaction in an account shall, to that ex­ specifically authorized. An adequate record shall be tent, be unavailable to permit any other transaction maintained showing for each such account the full in such account. For the purposes of this part (Reg­ details of all transactions in the account. ulation T), if a security has maximum loan value (3) A special account established pursuant to under subparagraph (c)(1) of this section in a this section shall not be used in any way for the pur­ genera] account, a sale of the same security (even pose of evading or circumventing any of the provi­ though not the same certificate) in such account sions of this part. If a customer has with a creditor shall be deemed to be a long sale and shall not be both a general account and one or more such special deemed to be or treated as a short sale. accounts, the creditor shall treat each such special (h) Unissued securities. (1) The amount to be account as if the customer had with the creditor no included in the adjusted debit balance of a general general account, special bond account subject to account, special bond account, or special convertible § 220.4(i), or special convertible security account security account as the margin required for a net subject to § 220.4(j). long commitment in unissued securities shall be the (4) The only other conditions to which transac­ current market value of the net amount of unissued tions in such special accounts shall be subject under securities long minus the maximum loan value which the provisions of this part shall be such conditions such net amount of securities would have if they as are specified in the appropriate paragraph of this were issued margin securities held in such account; section and in §§ 220.2, 220.6, 220.7, or 220.8, and the amount to be so included as the margin re­ except insofar as § 220.3 applies to §§ 220.4(i), quired for a net short commitment in unissued se­ and (j). curities shall be the amount which would be required (b) Special omnibus account. In a special omni­ as margin for the net amount of unissued securities bus account, a member of a national securities ex­ short if such securities were issued securities and change may effect and finance transactions for were sold short in such account: Provided, That no another member of a national securities exchange or amount need be included as margin for a net short a broker or dealer registered with the Securities and commitment in unissued securities when there are Exchange Commission under section 15 of the Se­ held in such account securities in respect of which curities Exchange Act of 1934 (15 U.S.C. 78o) the unissued securities are to be issued, nor for any from whom the member receives (1) written notice, net position in unissued securities that are exempted pursuant to a rule of the Securities and Exchange securities. Commission concerning the hypothecation of cus­ (2) Whenever a creditor, pursuant to a purchase tomers’ securities by brokers or dealers (Rule 8c-l of an unissued security for a customer, receives an (17 CFR 240.8c-!) or Rule 15c2-l (17 CFR issued security which is not a margin or exempted 240.15c2-l) ), to the effect that all securities car­ security, the creditor shall treat as the margin re­ ried in the account will be carried for the account quired for such purchase, any payment by the cus­ of the customers of the broker or dealer and (2) tomer for such issued security as a transaction (other written notice that any short sales effected in the than a withdrawal) which increases the adjusted account will be short sales made in behalf of the debit balance of a general account, special bond ac­ customers of the broker or dealer other than his count, or special convertible security account by the partners. No substitutions of collateral securing amount of the payment minus the amount required credit extended to a broker or dealer not described Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 531 in the preceding sentence shall be permitted after that does not exceed 103 per cent of the amount October 6, 1969, and no such credit shall be main­ that will be payable to the purchaser of the new tained after July 8, 1970. security upon such maturity of, or payment for, (c) Special cash account. (1) In a special cash securities owned by him at the time of the purchase. account, a creditor may effect for or with any cus­ (4) If any shipment of securities is incidental tomer bona fide cash transactions in securities in to the consummation of the transaction, the period which the creditor may: applicable to the transaction under subparagraph (i) Purchase any security for, or sell any security (2) of this paragraph shall be deemed to be ex­ to, any customer, provided funds sufficient for the tended by the number of days required for all such purpose are already held in the account or the pur­ shipments, but not by more than 7 days. chase or sale is in reliance upon an agreement ac­ (5) If the creditor, acting in good faith in ac­ cepted by the creditor in good faith that the cus­ cordance with subparagraph (1) of this paragraph, tomer will promptly make full cash payment for the purchases a security for a customer, or sells a se­ security and that the customer does not contemplate curity to a customer, with the understanding that selling the security prior to making such payment. he is to deliver the security promptly to the cus­ (ii) Sell any security for, or purchase any se­ tomer, and the full cash payment to be made curity from, any customer, provided the security is promptly by the customer is to be made against held in the account or the creditor is informed that such delivery, the creditor may at his option treat the customer or his principal owns the security and the transaction as one to which the period appli­ the purchase or sale is in reliance upon an agree­ cable under subparagraph (2) of this paragraph is ment accepted by the creditor in good faith that the not the 7 days therein specified but 35 days after security is to be promptly deposited in the account. the date of such purchase or sale. (2) In case a customer purchases a security (6) If an appropriate committee of a national (other than an exempted security) in the special securities exchange or a national securities associa­ cash account and does not make full cash pay­ tion is satisfied that the creditor is acting in good ment for the security within 7 days after the date faith in making the application, that the application on which the security is so purchased, the creditor relates to a bona fide cash transaction, and that ex­ shall, except as provided in subparagraphs (3)-(7) ceptional circumstances warrant such action, such of this paragraph, promptly cancel or otherwise committee, on application of the creditor, (i) may liquidate the transaction or the unsettled portion extend any period specified in subparagraphs (2), thereof. (3), (4), or (5) of this paragraph for one or more (3) If the security when so purchased is an un­ limited periods commensurate with the circum­ issued security, the period applicable to the trans­ stances, or (ii), in case a security purchased by the action under subparagraph (2) of this paragraph customer in the special cash account is a margin or shall be 7 days after the date on which the security exempted security, may authorize the transfer of is made available by the issuer for delivery to pur­ the transaction to a general account, special bond chasers. If the security when so purchased is a account, special convertible security account, or “when distributed” security which is to be dis­ special omnibus account, and the completion of tributed in accordance with a published plan, the such transaction pursuant to the provisions of this period applicable to the transaction under sub­ part relating to such an account. paragraph (2) of this paragraph shall be 7 days (7) The 7-day periods specified in this para­ after the date on which the security is so dis­ graph refer to 7 full business days. The 35-day tributed. If the security when so purchased is a period and the 90-day period specified in this para­ new security issued or to be issued for the purpose graph refer to calendar days, but if the last day of of refunding outstanding securities which mature, any such period is a Saturday, Sunday, or holiday, or are to be payable upon presentation for redemp­ such period shall be considered to end on the next tion, within 35 days of the date on which the new full business day. For the purposes of this para­ security is made available by the issuer for delivery graph, a creditor may, at his option, disregard any to purchasers, the period applicable to the trans­ sum due by the customer not exceeding $100. action under subparagraph (2) of this paragraph (8) Unless funds sufficient for the purpose are shall be 7 days after such maturity or payment already in the account, no security other than an date: Provided, That this sentence shall apply only exempted security shall be purchased for, or sold to the payment of that portion of the purchase price to, any customer in a special cash account with the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

532 FEDERAL RESERVE BULLETIN □ JUNE 1969 creditor if any security other than an exempted a disparity in the prices of the two securities. security has been purchased by such customer in (e) Special commodity account. In a special such an account during the preceding 90 days, and commodity account, a creditor may effect and carry then, for any reason whatever, without having been for any customer transactions in commodities. previously paid for in full by the customer, the (f) Special miscellaneous account. In a special security has been sold in the account or delivered miscellaneous account, a creditor may: out to any broker or dealer: Provided, That an (1) With the approval of any regularly consti­ appropriate committee of a national securities ex­ tuted committee of a national securities exchange change or a national securities association, on ap­ having jurisdiction over the business conduct of its plication of the creditor, may authorize the creditor members, extend and maintain credit to meet the to disregard for the purposes of this subparagraph emergency needs of any creditor; any given instance of the type therein described if (2)( i) Extend and maintain credit, (a) to or the committee is satisfied that both creditor and for any partner of a firm which is a member of a customer are acting in good faith and that circum­ national securities exchange to enable such partner stances warrant such authorization. For the pur­ to make a contribution of capital to such firm, or to poses of this subparagraph, the cancelation of a purchase stock in an affiliated corporation of such transaction, otherwise than to correct an error, shall firm, or (/>) to or for any person who is or will be deemed to constitute a sale. The creditor may become the holder of stock of a corporation which disregard for the purposes of this subparagraph a is a member of a national securities exchange to sale without prior payment provided full cash pay­ enable such person to purchase stock in such cor­ ment is received within the period described by sub­ poration, or to purchase stock in an affiliated cor­ paragraph (2) of this paragraph and the customer poration of such corporation; provided the lender has not withdrawn the proceeds of sale on or before as well as the borrower is a partner in such member the day on which such payment (and also final pay­ firm or a stockholder in such member corporation, ment of any check received in that connection) is or the lender is a firm or a stockholder in such received. The creditor may so disregard a delivery member corporation, or the lender is a firm or cor­ of a security to another broker or dealer provided poration which is a member of a national securities such delivery was for deposit into a special cash exchange and the borrower is a partner in such firm account which the latter broker or dealer maintains or a stockholder in such corporation; for the same customer and in which account there (ii) Extend and maintain subordinated credit to are already sufficient funds to pay for the security another creditor for capital purposes: Provided, That so purchased; and for the purpose of determining in (a) Either the lender or the borrower is a firm that connection the status of a customer’s account or corporation which is a member of a national at another broker or dealer, a creditor may rely upon securities exchange, the other party to the credit is a written statement which he accepts in good faith an affiliated corporation of such member firm or from such other broker or dealer. corporation, and, in addition to the fact that an (d) Special arbitrage account. In a special appropriate committee of the exchange is satisfied arbitrage account, a member of a national securities that the credit is not in contravention of any rule of exchange may effect and finance for any customer the exchange, the credit has the approval of such bona fide arbitrage transactions in securities. For committee, or the purpose of this paragraph, the term “arbitrage” (b) The lender as well as the borrower is a means (1) a purchase or sale of a security in one member of such exchange, the credit has the ap­ market together with an offsetting sale or purchase proval of an appropriate committee of the ex­ of the same security in a different market at as change, and the committee, in addition to being nearly the same time as practicable, for the purpose satisfied that the credit is not in contravention of of taking advantage of a difference in prices in the any rule of the exchange, is satisfied that the credit two markets, or (2) a purchase of a security which is outside the ordinary course of the lender’s busi­ is, without restriction other than the payment of ness, and that, if the borrower’s firm or corporation money, exchangeable or convertible within 90 or an affiliated corporation of such firm or corpora­ calendar days following the date of its purchase tion does any dealing in securities for its own into a second security together with an offsetting account, the credit is not for the purpose of increas­ sale at or about the same time of such second ing the amount of such dealing. security for the purpose of taking advantage of (iii) For the purpose of subdivisions (i) and Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 533 (ii) of this subparagraph, the term “affiliated cor­ whatever for any purpose4 other than purchasing or poration” means a corporation all the common carrying or trading in securities. stock of which is owned directly or indirectly by (g) Specialist’s account. In a special account the member firm or general partners and employees designated as a specialist’s account, a creditor may of the firm, or by the member corporation or effect and finance, for any member of a national holders of voting stock and employees of the cor­ securities exchange who is registered and acts as a poration and an appropriate committee of the ex­ specialist in securities on the exchange, such mem­ change has approved the member firm’s or member ber’s transactions as a specialist in such securities, corporation’s affiliation with such affiliated cor­ or effect and finance, for any joint venture in which poration. the creditor participates, any transactions in any (3) Purchase any security from any customer securities of an issue with respect to which all par­ who is a member of a national securities exchange ticipants, or all participants other than the creditor, or a broker or dealer registered with the Securities are registered and act on a national securities ex­ and Exchange Commission under section 15 of the change as specialists. Such specialist’s account shall Securities Exchange Act of 1934 (15 U.S.C. 78o), be subject to the same conditions to which it would or sell any security to such customer: Provided, be subject if it were a general account except that if That the creditor acting in good faith purchases or the specialist’s exchange, in addition to the other sells the security for delivery, against full payment requirements applicable to specialists, is designated of the purchase price, as promptly as practicable in by the Board of Governors of the Federal Reserve accordance with the ordinary usage of the trade; System as requiring reports suitable for supplying (4) Effect and finance, for any member of a current information regarding specialists’ use of national securities exchange who is registered and credit pursuant to this paragraph, the requirements acts as odd-lot dealer in securities on the exchange, of § 220.6(b) regarding joint ventures shall not such member’s transactions as an odd-lot dealer in apply to such accounts and the maximum loan such securities, or effect and finance, for any joint value of a registered security in such account shall venture in which the creditor participates, any be as determined by the creditor in good faith. transactions in any securities of an issue with re­ (h) Special subscriptions accounts. In a special spect to which all participants, or all participants subscriptions account a creditor may effect and other than the creditor, are registered and act on a finance the acquisition of a margin security for a national securities exchange as odd-lot dealers; customer through the exercise of a right to acquire (5) Effect transactions for and finance any joint such security which is evidenced by a warrant or venture or group in which the creditor participates certificate issued to stockholders and expiring within and in which all participants are dealers (whether 90 days of issuance, and such special subscriptions such participants be acting jointly or severally), or account shall be subject to the same conditions to any member thereof or participant therein, for the which it would be subject if it were a general purpose of facilitating the underwriting or distribut­ account, except that: ing of all or part of an issue of securities (i) not (1) Each such acquisition shall be treated sepa­ through the medium of a national securities ex­ rately in the account, and prior to initiating the change, or (ii) the distribution of which has been transaction the creditor shall obtain a deposit of approved by the appropriate committee of a national cash in the account such that the cash deposited securities exchange; plus the maximum loan value of the securities so (6) Effect for any customer the collection or acquired equals or exceeds the subscription price, exchange (other than by sale or purchase) of secu­ giving effect to a maximum loan value for the rities deposited by the customer specifically for securities so acquired of 75 per cent of their current such purposes, and (subject to any other applicable market value as determined by any reasonable provisions of law) received from or for any cus­ method; tomer, and pay out or deliver to or for any cus­ (2) After October 20, 1967, at the time when tomer, any money or securities; credit is extended pursuant to this paragraph, the (7) Effect and carry for any customer transac­ creditor shall compute the amount by which the tions in foreign exchange; and credit exceeds the maximum loan value of the col­ lateral as prescribed by § 220.8 (the Supplement to (8) Extend and maintain credit to or for any customer without collateral or on any collateral ‘See § 220.7(c). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

534 FEDERAL RESERVE BULLETIN □ JUNE 1969 Regulation T) and the customer shall reduce the a creditor may extend credit on any margin security credit by an amount equal to at least one-fourth of consisting of a margin debt security (i) convertible such sum by the end of each of the 4 succeeding 3- with or without consideration, presently or in the calendar-month periods or until the credit does not future, into margin stock or (ii) carrying a warrant exceed the current maximum loan value of the col­ or right to subscribe to or purchase such stock. lateral, whichever shall occur first, and, if the credi­ (2) A special convertible debt security account tor fails to obtain the required quarterly reduction shall be subject to the same conditions to which it or a portion thereof with respect to a particular would be subject if it were a general account except acquisition within 5 full business days after such that the maximum loan value of the securities in reduction is due, the creditor shall promptly liqui­ the account shall be as prescribed from time to time date a portion of the collateral so acquired and in § 220.8 (the Supplement to Regulation T). apply the proceeds of the sale to reduce the credit, (3) Any security which ceases to be an equity in an amount equal to at least twice the required security while held in this account shall continue to payment or portion thereof for the first 2 such be treated as an equity security as long as it is liquidations, at least equal to the required payment continuously held in this account. or portion thereof for the third such liquidation, (4) In the event any stock is to be substituted and at least sufficient so that the remaining credit for a security held in this account, or if a security does not exceed the current maximum loan value held in this account is to be used to offset a short of the remaining collateral after the fourth such sale in the general account, such security shall liquidation: Provided, Tha:t no such liquidation thereupon be transferred to the customer’s general need be in an amount greater than is necessary so account against a deposit of cash or margin securi­ that the remaining credit does not exceed the maxi­ ties eligible for an extension of credit in this account mum loan value of the remaining collateral deter­ (counted at their maximum loan value) equal to at mined as of the date the credit was extended; and least the maximum loan value of the security for (3) The creditor shall not permit any with­ which such substitution is made, without regard to drawal of cash or securities from the account so the retention requirement of § 220.3(b)(2). long as the remaining credit exceeds the maximum (k) Special equity funding account. In a special loan value of the remaining collateral in the ac­ equity funding account a creditor who is the issuer count, except that when the remaining credit ex­ or a subsidiary or affiliate of the issuer of a plan, tended in connection with a given acquisition of program, or investment contract, registered with the securities in the account has become equal to or less Securities and Exchange Commission under the than the maximum loan value of such securities as Securities Act of 1933 (15 U.S.C. 77), that pro­ prescribed in § 220.8 (the Supplement to Regula­ vides for the acquisition both of a security issued tion T) (or in connection with an acquisition after by an investment company registered pursuant to October 20, 1967, the requirements of subpara­ section 8 of the Investment Company Act of 1940 graph (2) of this section have been fulfilled), such (15 U.S.C. 80a-8) and of insurance may arrange securities shall be transferred to the general account for the extension or maintenance of credit, not in (or, if eligible, to a special convertible security ac­ excess of the premiums on such policy (plus any count pursuant to § 220.4(j)) together with any applicable interest), on a security issued by such an remaining portion of such credit. In order to facili­ investment company that serves as collateral under tate the exercise of a right in accordance with the such a plan, program, or investment contract: Pro­ provisions of this paragraph, a creditor may permit vided, That such credit is extended or maintained the right to be transferred from a general account to by a lender subject to Part 207 of this Chapter the special subscriptions account without regard to (Regulation G) or a bank subject to Part 221 of any other requirement of this part. this Chapter (Regulation U). A creditor arrang­ (i) Special bond account. In a special bond ing credit in a special equity funding account shall account a creditor may effect and finance trans­ not extend, arrange, or maintain credit in the gen­ actions in exempted securities and registered non­ eral account or any other special account in equity securities for any customer.5 §§ 220.3 and 220.4 of this part. (j) Special convertible debt security account. (1) In a special convertible debt security account SECTION 220.5—BORROWING BY MEMBERS, BROKERS, AND DEALERS 5 For maximum loan value of such securities see § 220.8 (b), the Supplement to Regulation T. (a) General rule. It is unlawful for any creditor, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 535 directly or indirectly, to borrow in the ordinary firm as reflected in his capital and ordinary drawing course of business as a broker or dealer on any accounts. registered security (other than an exempted secu­ (b) Contribution to joint venture. In case a rity) except: general account, special bond account, or special (1) from or through a member bank of the convertible security account is the account of a Federal Reserve System; or joint venture in which the creditor participates, the (2) from any nonmember bank which shall adjusted debit balance of such account shall in­ have filed with the Board an agreement which is clude, in addition to the items specified in still in force and which is in the form prescribed § 220.3(d), any amount by which the creditor’s by this part; or contribution to the joint venture exceeds the con­ (3) to the extent to which, under the provisions tribution which he would have made if he had con­ of this part, loans are permitted between members tributed merely in proportion to his right to share of a national securities exchange and/or brokers in the profits of the joint venture. and/or dealers, or loans are permitted to meet (c) Guaranteed accounts. No guarantee of a emergency needs. customer’s account shall be given any effect for (b) Agreements of nonmember banks. An purposes of this part. agreement filed pursuant to section 8(a) of the Act (d) Transfer of accounts. (1) In the event of (15 U.S.C. 78h(a)) by a bank not a member of the transfer of a general account, special bond ac­ the Federal Reserve System shall be substantially in count, or special convertible security account from the form contained in Form F.R. T-2 if the bank one creditor to another, such account may be has its principal place of business in a territory or treated for the purposes of this part as if it had insular possession of the United States, or if it has been maintained by the transferee from the date of an office or agency in the United States and its its origin: Provided, That the transferee accepts in principal place of business outside the United good faith a signed statement of the transferor that States. The agreement filed by any other nonmem­ no cash or securities need be deposited in such ber bank shall be in substantially the form con­ account in connection with any transaction that has tained in Form F.R. T-l. Any nonmember bank been effected in such account or, in case he finds which has executed any such agreement may ter­ that it is not practicable to obtain such a statement minate the agreement if it obtains the written con­ from the transferor, accepts in good faith such a sent of the Board. Blank forms of such agreements, signed statement from the customer. information regarding their filing or termination, (2) In the event of the transfer of a general and information regarding the names of nonmem­ account, special bond account, or special con­ ber banks for which such agreements are in force, vertible security account, from one customer to may be obtained from any Federal Reserve Bank. another, or to others, as a bona fide incident to a (c) Borrowing from other creditors. A creditor transaction that is not undertaken for the purpose may borrow from another creditor in the ordinary of avoiding the requirements of this part, each such transferee account may be treated by the course of business as a broker or dealer on any registered security to the extent and subject to the creditor for the purposes of this part as if it had terms upon which the latter may extend credit to been maintained for the transferee from the date him in accordance with the provisions of this part, of its origin: Provided, That the creditor accepts in and subject to any other applicable provisions of good faith and keeps with such transferee account law. a signed statement of the transferor describing the circumstances giving rise to the transfer. (e) Reorganizations. A creditor may, without SECTION 220.6—CERTAIN TECHNICAL regard to the other provisions of this part, effect DETAILS for a customer the exchange of any margin or (a) Accounts of partners. In case a general exempted security in a general account, special account, special bond account, or special con­ bond account, or special convertible security ac­ vertible security account is the account of a partner count, for the purpose of participating in a reor­ of the creditor, the creditor, in calculating the ad­ ganization or recapitalization in which the security justed debit balance of such account and the maxi­ is involved: Provided, That if a non-margin non­ mum loan value of the securities therein, shall dis­ exempted security is acquired in exchange the regard the partner’s financial relations with the creditor shall not, for a period of 60 days following Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

536 FEDERAL RESERVE BULLETIN □ JUNE 1969 such acquisition, permit the withdrawal of such condition that the adjusted debit balance of such security or the proceeds of its sale from such ac­ account does not exceed the maximum loan value count except to the extent that such security or of the securities in such account after such with­ proceeds could be withdrawn if the security were drawal, or on condition that (i) such withdrawal a margin security. is made within 35 days after the day on which, in (f) Time of receipt of funds or securities. For accordance with the creditor’s usual practice, such the purposes of this part, a creditor may, at his interest, dividends, or other distributions are en­ option (1) treat the receipt in good faith of any tered in such account, (ii) such entry in the ac­ check or draft drawn on a bank which in the count has not served in the meantime to permit in ordinary course of business is payable on presen­ the account any transaction which could not other­ tation, or any order on a savings bank with pass­ wise have been effected in accordance with this book attached which is so payable, as receipt of part, and (iii) any cash withdrawn does not repre­ payment of the amount of such check, draft, or sent any arrearage on the security with respect to order; (2) treat the shipment of securities in good which it was distributed, and the current market faith with sight draft attached as receipt of payment value of any securities withdrawn does not exceed of the amount of such sight draft; and (3) in the 10 per cent of the current market value of the case of the receipt in good faith of written or security with respect to which they were dis­ telegraphic notice in connection with a special tributed. Failure by a creditor to obtain in a gen­ omnibus account of a customer not located in the eral account, special bond account, or special con­ same city that a specified security or a check or vertible security account, any cash or securities draft has been dispatched to the creditor, treat the that are distributed with respect to any security in receipt of such notice as receipt of such security, such account shall, except to the extent that with­ check, or draft: Provided, however, That if the drawal would be permitted under the preceding creditor receives notice that such check, draft, sentence, be deemed to be a transaction in such order, or sight draft described in subparagraphs account which occurs on the day on which the (1), (2), or (3) of this paragraph is not paid on distribution is payable and which requires the the day of presentation, or if such security, check, creditor to obtain in accordance with § 220.3(b) a or draft described in subparagraph (3) of this deposit of cash or securities having a maximum paragraph is not received by the creditor within a loan value at least as great as that of the dis­ reasonable time, the creditor shall promptly take tribution. such action as he would have been required to take (h) Borrowing and lending securities. Without by the appropriate provisions of this part if the regard to the other provisions of this part, a credi­ provisions of this paragraph had not been utilized. tor (1) may make a bona fide deposit of cash in (g) Interest, service charges, etc. (1) Interest order to borrow securities (whether margin or on credit maintained in a general account, special non-margin) for the purpose of making delivery of bond account, or special convertible security ac­ such securities in the case of short sales, failure to count, communication charges with respect to receive securities he is required to deliver, or other transactions in such account, shipping charges, similar cases, and (2) may lend securities for such premiums on securities borrowed in connection purpose against such a deposit. with short sales or to effect delivery, dividends or (i) Credit for clearance of securities. The ex­ other distributions due on borrowed securities, and tension or maintenance of any credit which is any service charges (other than commissions) maintained for only a fraction of a day (that is, which the creditor may impose, may be debited to for only part of the time between the beginning of such account in accordance with the usual prac­ business and midnight on the same day) shall be tice and without regard to the other provisions of disregarded for the purposes of this part, if it is this part, but such items so debited shall be taken incidental to the clearance of transactions in securi­ into consideration in calculating the net credit or ties directly between members of a national securi­ net debit balance of such account. ties exchange or through an agency organized or (2) A creditor may permit interest, dividends, employed by such members for the purpose of or other distributions received by the creditor with effecting such clearance. respect to securities in a general account, special (j) Foreign currency. If foreign currency is bond account, or special convertible security ac­ capable of being converted without restriction into count, to be withdrawn from such account only on United States currency, a creditor acting in good Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 537 faith may treat any such foreign currency in an (c) Statement of purpose of loan. Every exten­ account as a credit to the account in an amount sion of credit on a margin security (other than an determined in accordance with customary practice. exempted security) shall be deemed to be for the (k) Innocent mistakes. If any failure to comply purpose of purchasing or carrying or trading in with this part results from a mechanical mistake securities, unless the creditor has accepted in good made in good faith in executing a transaction, faith a written statement to the contrary in con­ recording, determining, or calculating any loan, formity with the requirements of Form F.R. T-4 balance, market price or loan value, or other simi­ executed by the customer and executed and ac­ lar mechanical mistake, the creditor shall not be cepted in good faith by the creditor prior to such deemed guilty of a violation of this part if promptly extension. The creditor shall retain such statement after the discovery of such mistake he takes what­ in his records for at least 3 years after such credit ever action may be practicable in the circumstances is extinguished. To accept the customer’s statement to remedy such mistake. in good faith, the creditor must (1) be alert to the circumstances surrounding the extension of credit SECTION 220.7—MISCELLANEOUS and (2) if he has any information which would PROVISIONS cause a prudent man not to accept the statement without inquiry, have investigated and be satisfied (a) Arranging for loans by others. A creditor that the customer’s statement is truthful. A creditor may arrange for the extension or maintenance of may rely upon such a written statement if accepted credit to or for any customer of such creditor by in accordance with this paragraph. any person upon the same terms and conditions as those upon which the creditor, under the provisions (d) Reports. Every creditor shall make such of this part, may himself extend or maintain such reports as the Board may require to enable the credit to such customer, but only upon such terms Board to perform the functions conferred upon it and conditions, except that this limitation shall not by the Act. apply with respect to the arranging by a creditor (e) Additional requirements by exchanges and for a bank subject to Part 221 of this Chapter creditors. Nothing in this part shall (1) prevent (Regulation U) to extend or maintain credit on any exchange or national securities association from margin securities or exempted securities. adopting and enforcing any rule or regulation fur­ (b) Maintenance of credit. Except as otherwise ther restricting the time or manner in which its specifically forbidden by this part, any credit ini­ members must obtain initial or additional margin in tially extended without violation of this part may be maintained regardless of (1) reductions in the cus­ customer’s accounts because of transactions effected tomer’s equity resulting from changes in market in such accounts, or requiring such members to prices, (2) the fact that any security in an account secure or maintain higher margins, or further re­ ceases to be margin or exempted, and (3) any stricting the amount of credit which may be ex­ change in the maximum loan values or margin re­ tended or maintained by them, or (2) modify or quirements prescribed by the Board under this part. restrict the right of any creditor to require addi­ In maintaining any such credit, the creditor may tional security for the maintenance of any credit, to accept or retain for his own protection additional refuse to extend credit, or to sell any securities or collateral of any description, including non-margin property held as collateral for any loan or credit securities. extended by him. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

538 FEDERAL RESERVE BULLETIN □ JUNE 1969 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO REGULATION T Effective July 8, 1969 SECTION 220.8—SUPPLEMENT (2) In the case of a special bond account sub­ ject to § 220.4(i), the retention requirement of an (a) Maximum loan value for general accounts. exempted security and of a registered non-equity The maximum loan value of securities in a general security shall be equal to the maximum loan value account subject to § 220.3 shall be: of the security. (1) of a registered non-equity security held in (3) In the case of a special convertible security the account on March 11, 1968, and continuously account subject to § 220.4(j) which would have an thereafter, and of a margin equity security (except excess of the adjusted debit balance of the account as provided in § 220.3(c) and paragraphs (b) and over the maximum loan value of the securities in (c) of this section), 20 per cent of the current the account following a withdrawal of cash or market value of such securities. securities from the account, the retention require­ (2) of an exempted security held in the account ment of a security having loan value in the account on March 11, 1968, and continuously thereafter, shall be 70 per cent of the current market value of the maximum loan value of the security as deter­ the security. mined by the creditor in good faith. (b) Maximum loan value for a special bond (4) For the purpose of effecting a transfer from account. The maximum loan value of an exempted a general account to a special convertible security security and of a registered non-equity security pur­ account subject to § 220.4(j), the retention re­ suant to § 220.4(i) shall be the maximum loan quirement of a security described in § 220.4(j), value of the security as determined by the creditor shall be 70 per cent of its current market value. in good faith. (f) Security having no loan value in general (c) Maximum loan value for special convertible account. No securities other than an exempted debt security account. The maximum loan value of security or registered non-equity security held in the a margin security eligible for a special convertible account on March 11, 1968, and continuously security account pursuant to § 220.4(j) shall be 40 thereafter, ^nd a margin security, shall have any per cent of the current market value of the security. loan value in a general account except that a margin (d) Margin required for short sales. The security eligible for the special convertible security amount to be included in the adjusted debit balance account pursuant to § 220.4(j) shall have loan of a general account, pursuant to § 220.3(d) (3), as value only if held in the account on March 11, margin required for short sales of securities (other 1968, and continuously thereafter. than exempted securities) shall be 80 per cent of (g) Requirements for inclusion on list of OTC the current market value of each security. margin stock. Except as provided in subparagraph (e) Retention requirement. In the case of an (4) of § 220.2(e), OTC margin stock shall meet account which would have an excess of the ad­ the requirements that: justed debit balance of the account over the maxi­ (1) The stock is subject to registration under mum loan value of the securities in the account § 12(g) (1) of the Securities Exchange Act of 1934 following a withdrawal of cash or securities from (15 U.S.C. 781(g)(1)), or if issued by an insur­ the account, pursuant to § 220.3(b)(2): ance company subject to § 12(g)(2)(G) (15 (1) The ‘‘retention requirement” of an exempted U.S.C. 781(g)(2)(G)), the issuer had at least $1 security held in the general account on March 11, million of capital and surplus, 1968, and continuously thereafter, shall be equal to (2) Five or more dealers stand willing to, and its maximum loan value as determined by the credi­ do in fact, make a market in such stock including tor in good faith, and the “retention requirement” making regularly published bona fide bids and of a registered non-equity security held in such offers for such stock for their own accounts, or the account on March 11, 1968, and continuously stock is registered on a securities exchange that is thereafter, and of a margin security, shall be 70 per exempted by the Securities and Exchange Commis­ cent of the current market value of the security. sion from registration as a national securities ex- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 539 change pursuant to section 5 of the Act (15 U.S.C. and shall meet 3 of the 4 additional requirements 78e), that: (3) There are 1,500 or more holders of record (7) There are 500,000 or more shares of such of the stock who are not officers, directors, or bene­ stock outstanding in addition to shares held benefi­ ficial owners of 10 per cent or more of the stock, cially by officers, directors, or beneficial owners of (4) The issuer is organized under the laws of more than 10 per cent of the stock, the United States or a State6 and it, or a prede­ cessor in interest, has been in existence for at least (8) The shares described in subparagraph (7) 3 years, of this paragraph have a market value in the aggre­ (5) The stock has been publicly traded for at gate of at least $10 million, least 6 months, and (9) The minimum average bid price of such (6) Daily quotations for both bid and asked stock, as determined by the Board in the latest prices for the stocks are continuously available to month, is at least $10 per share, and the general public; (10) The issuer had at least $5 million of capi­ “As defined in 15 U.S.C. 78c(a)(16). tal, surplus, and undivided profits. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

540 FEDERAL RESERVE BULLETIN □ JUNE 1969 REGULATION U (12 CFR 221) Revised effective July 8, 1969 CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCKS * SECTION 221.1—GENERAL RULE the purpose of purchasing or carrying any OTC (a) Purpose credit secured by stock. (1) Except margin stock4 or any debt security convertible into as provided in subparagraph (2) of this paragraph such stock (and no other margin stock) is not (a) and in § 221.3(q) no bank shall extend any purpose credit, except that with respect to any OTC credit secured directly or indirectly1 by any stock2 margin stock such date shall be August 7, 1969, if for the purpose of purchasing or carrying any mar­ extended to a member of a national securities gin stock 3 in an amount exceeding the maximum exchange or a broker or dealer registered under loan value of the collateral, as prescribed from time section 15 of the Securities Exchange Act of 1934 to time for stocks in § 221.4 (the Supplement to (15 U.S.C. 78o). Regulation U) and as determined by the bank in (b) Substitutions and withdrawals. Except as good faith for credit subject to § 221.3 (s) for any permitted in paragraph (c) of this section, while a collateral other than stocks: Provided, That unless bank maintains any credit subject to this part, held as collateral for such credit on October 20, whenever extended, the bank shall not at any time 1967, and continuously thereafter, any collateral permit any withdrawal or substitution of collateral other than stock shall have loan value for the pur­ unless either (1) the credit would not exceed the pose of this part only as collateral for a credit maximum loan value of the collateral after such which is not secured by stock, as described in withdrawal or substitution, or (2) the credit is § 221.3(s), and any collateral consisting of con­ reduced by at least the amount by which the maxi­ vertible debt securities described in § 221.3 (t) shall mum loan value of any collateral deposited is less have loan value only for the purpose of that section, than the “retention requirement” of any collateral and not for other credit subject to this part. withdrawn. The “retention requirement” of col­ (2) Credit extended prior to July 8, 1969, for lateral other than stock is the same as its maximum loan value and the “retention requirement” of col­ * This text corresponds to the Code of Federal Regula­ lateral consisting of stock is prescribed from time tions, Title 12, Chapter II, part 221, cited as 12 CFR 221. The words “this part,” as used herein, mean Regulation U. to time in § 221.4 (the Supplement to Regulation 1 As defined in § 221.3(c). U). 2 As defined in § 221.3(f). 3 Sometimes referred to as a “purpose credit”. See ‘As defined in § 221.3(d), "OTC stock” hereinafter re­ § 221.3(b). The term “margin stock” is defined in § 221.3(v). fers to stock traded “over the counter.” Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 541 (c) Same-day transactions. Except as provided (e) Any credit extended to a member of a in § 221.3(f) (1), a bank may permit a substitution national securities exchange or a broker or dealer of stock whether margin or non-margin, effected by registered under section 15 of the Securities Ex­ a purchase and sale on orders executed within the change Act of 1934 (15 U.S.C. 78o) secured by same day: Provided, That (1) if the proceeds of the any securities which, according to written notice sale exceed the total cost of the purchase, the credit received by the bank from the broker or dealer is reduced by at least an amount equal to the “re­ pursuant to a rule of the Securities and Exchange tention requirement” with respect to the sale less Commission concerning the hypothecation of cus­ the “retention requirement” with respect to the pur­ tomers’ securities (Rule 8c-l (17 CFR 240.8c-l) chase, or (2) if the total cost of the purchase ex­ or Rule 15c2-l (17 CFR 240.15c2-l)), are ceeds the proceeds of the sale, the credit may be in­ securities carried for the account of one or more creased by an amount no greater than the maximum customers; loan value of the stock purchased less the maximum (f) Any credit extended to finance the purchase loan value of the stock sold. If the maximum loan or sale of securities for prompt delivery which is to value of the collateral securing the credit has be­ be repaid in the ordinary course of business upon come less than the amount of the credit, the amount completion of the transaction: Provided, That the of the credit may nonetheless be increased if there advance is not made to a person described in is provided additional collateral having maximum § 221.3(q): And provided further, That it is either loan value at least equal to the amount of the (1) extended to a broker or dealer, or (2) extended increase. for a purpose other than to enable the borrower to (d) Single credit rule. For the purpose of this pay for stock purchased in an account subject to part, except for credit subject to § 221.3(s) or (t), Part 220 of this Chapter (Regulation T); the entire amount of the purpose credit extended to (g) Any credit extended against securities in any customer by any bank at any time shall be transit, or surrendered for transfer, which is payable considered a single credit; and all the collateral in the ordinary course of business upon arrival of securing such credit shall be considered in deter­ the securities or upon completion of the transfer: mining whether or not the credit complies with this Provided, That the credit is not extended to a per­ part. son described in § 221.3(q): And provided further, That it is either (1) extended to a broker or dealer, SECTION 221.2—EXCEPTIONS TO or (2) extended for a purpose other than to enable GENERAL RULE the customer to pay for stock purchased in an ac­ count subject to Part 220 of this Chapter (Regula­ Notwithstanding the provisions of § 221.1, a tion T); bank may extend and may maintain any credit for (h) Any credit which is to be repaid on the the purpose specified in § 221.1, without regard to calendar day on which it is extended: Provided, the limitations prescribed therein, or in § 221.3 (t), That the credit is not extended to a person de­ if the credit comes within any of the following scribed in § 221.3(q): And provided further, That descriptions. it is either (1) extended to a broker or dealer, or (a) Any credit extended to a bank or to a (2) extended for a purpose other than to enable foreign banking institution; the customer to pay for stock purchased in an (b) Any credit extended to a “plan-lender” as account subject to Part 220 of this Chapter (Regu­ defined in § 207.4(a) of Part 207 of this Chapter lation T); (Regulation G) to finance a plan described therein: (i) Any credit extended outside the States of the Provided, That in no event does the bank have United States and the District of Columbia; recourse to any stock purchased pursuant to such (j) Any credit extended to a member of a na­ plan; tional securities exchange for the purpose of financ­ (c) Any credit extended to a dealer, or to two ing his or his customers’ bona fide arbitrage trans­ or more dealers, to aid in the financing of the dis­ actions in securities. For the purposes of this para­ tribution of securities to customers not through the graph, the term “arbitrage” means (1) a purchase medium of a national securities exchange; or sale of a security in one market together with an (d) Any credit extended to a broker or dealer offsetting sale or purchase of the same security in a that is extended in exceptional circumstances in different market at as nearly the same time as prac­ good faith to meet his emergency needs; ticable, for the purpose of taking advantage of a Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

542 FEDERAL RESERVE BULLETIN □ JUNE 1969 difference in prices in the two markets, or (2) a any temporary application of funds otherwise. purchase of a security which is, without restriction (2) Credit to enable the customer to reduce or other than the payment of money, exchangeable or retire indebtedness which was originally incurred to convertible within 90 calendar days following the purchase a margin stock is for the purpose of date of its purchase into a second security together “carrying” such a security. with an offsetting sale at or about the same time of (3) An extension of credit provided for in a such second security, for the purpose of taking plan, program, or investment contract offered or advantage of a disparity in the prices of the two sold or otherwise initiated after August 31, 1969, securities; and which provides for the acquisition both of any (k) Any credit extended to a member of a na­ securities described in paragraph (v) of this section tional securities exchange for the purpose of financ­ and of goods, services, property interests, other ing such members’ transactions as an odd-lot dealer securities, or investments, is “purpose credit”. in securities with respect to which he is registered (c) Indirectly secured. The term “indirectly on such national securities exchanges as an odd-lot secured” includes any arrangement with the cus­ dealer. tomer under which the customer’s right or ability to sell, pledge, or otherwise dispose of stock owned by the customer is in any way restricted so long as SECTION 221.3—MISCELLANEOUS the credit remains outstanding, or under which the PROVISIONS exercise of such right, whether by written agree­ (a) Required statement as to stock-secured ment or otherwise, is or may be cause for accelera­ credit. In connection with an extension of credit tion of the maturity of the credit: Provided, That secured directly or indirectly by any stock, the bank the foregoing shall not apply (1) if such restriction shall obtain and retain in its records for at least 3 arises solely by virtue of an arrangement with the years after such credit is extinguished a statement customer which pertains generally to the customer’s in conformity with the requirements of Federal assets unless a substantial part of such assets con­ Reserve Form U-l executed by the recipient of sists of stock, or (2) if the bank in good faith has such extension of credit (sometimes referred to as not relied upon such stock as collateral in the ex­ the “customer”) and executed and accepted in good tension or maintenance of the particular credit: faith by a duly authorized officer of the bank prior And provided further, That the foregoing shall not to such extension: Provided, That this requirement apply to stock held by the bank only in the capacity shall not apply to any credit described in para­ of custodian, depositary, or trustee, or under similar graphs (o) or (w) of this section or § 221.2 of this circumstances, if the bank in good faith has not part except for credit described in paragraphs relied upon such stock as collateral in the extension 221.2(f), (g), and (h) extended to persons who or maintenance of the particular credit. are not brokers or dealers subject to Part 220 of (d) OTC margin stock. (1) The term “OTC this Chapter (Regulation T). In determining margin stock” means stock not traded on a national whether or not an extension of credit is for the securities exchange which the Board of Governors purpose specified in § 221.1 or for any of the pur­ of the Federal Reserve System has determined to poses specified in § 221.2 the bank may rely on the have the degree of national investor interest, the statement executed by the customer if accepted in depth and breadth of market, the availability of in­ good faith. To accept the customer’s statement in formation respecting the stock and its issuer, and the good faith, the officer must (1) be alert to the character and permanence of the issuer to warrant circumstances surrounding the credit and (2) if he subjecting such stock to the requirements of this has any information which would cause a prudent part. man not to accept the statement without inquiry, (2) The Board will from time to time publish have investigated and be satisfied that the customer’s a list of OTC margin stocks as to which the statement is truthful. Board has made the determination described in sub­ (b) Purpose of a credit. The “purpose of a paragraph (1) of this paragraph (d). Except as credit” is determined by substance rather than provided in subparagraph (4) of this paragraph form. (d) such stocks shall meet the requirements of (1) Credit which is for the purpose, whether § 221.4(d) (the Supplement to Regulation U). immediate, incidental, or ultimate, of purchasing or (3) The Board will from time to time remove carrying a margin stock is “purpose credit”, despite from the list described in subparagraph (2) of this Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 543 paragraph (d) stocks that cease to: incident to a transaction not undertaken for the (i) Exist or of which the issuer ceases to exist, purpose of avoiding the requirements of this part, or the amount of the credit is not increased, and the (ii) Meet substantially the provisions of sub­ collateral for the credit is not changed; and, after paragraph (1) of this paragraph (d) and of such transfer, a bank may permit such withdrawals § 221.4(d) (The Supplement to Regulation U). and substitutions of collateral as are permitted in (4) The foregoing notwithstanding, the Board respect to a credit it extends subject to this part. may, upon its own initiative, or upon application by (g) Reorganizations and recapitalizations. Noth­ any interested party, omit or remove any stock that ing in this part shall be construed to prevent a bank is not traded on a national securities exchange from from permitting withdrawals or substitutions of or add any such stock to such list of OTC margin securities to enable a customer to participate in a stocks, if in the judgment of the Board, such action reorganization or recapitalization. is necessary or appropriate in the public interest. (h) Mistakes in good faith. No mistake made (5) It shall be unlawful for any bank to make, in good faith in connection with the extension or or cause to be made, any representation to the maintenance of a credit shall be deemed to be a effect that the inclusion of a security on such list of violation of this part. OTC margin stocks is evidence that the Board or (i) Action for bank’s own protection. Nothing the Securities and Exchange Commission has in any in this part shall be construed as preventing a bank way passed upon the merits of, or given approval from taking such action as it shall deem necessary to, such security or any transaction therein. Any in good faith for its own protection. statement in an advertisement or other similar com­ (j) Reports. Every bank, and every person en­ munication containing a reference to the Board in gaged in the business of extending credit who, in connection with such stocks or such list shall the ordinary course of business, extends credit for constitute such an unlawful representation. the purpose of purchasing or carrying margin stock (e) Renewals and extensions of maturity. The shall make such reports as the Board of Governors renewal or extension of maturity of a credit need of the Federal Reserve System may require to en­ not be treated as the extension of a credit if the able it to perform the functions conferred upon it amount of the credit is not increased except by the by the Securities Exchange Act of 1934 (15 U.S.C. addition of interest or service charges in respect to 78). the credit or of taxes on transactions in connection (k) Definitions. For the purposes of this part, with the credit. unless the context otherwise requires, the terms (f) Transfers. A bank may, without following herein have the meanings assigned to them in the requirements of this part as to the extension of section 3(a) of the Securities Exchange Act of a credit, 1934 (15 U.S.C. 78c(a)), except that the term (1) Permit the transfer of a credit from one “bank” does not include a bank which is a mem­ customer to another, or to others: Provided, That a ber of a national securities exchange. statement by the transferor, describing the circum­ (I) Stock. The term “stock” includes any secu­ stances giving rise to the transfer, is accepted in rity commonly known as a stock; any voting trust good faith 5 and signed by an officer of the bank as certificate or other instrument representing such a having been so accepted, and kept with each such security; and any security convertible, with or with­ transferee account, or out consideration, presently or in the future, into (2) Accept the transfer of a credit originally such security, certificate, or other instrument, or extended in conformity with the requirements of carrying any warrant or right to subscribe to or this part directly from another bank: Provided, purchase such a security; or any such warrant or That the statement of purpose, executed by the cus­ right. tomer in connection with the original extension of (m) Credit subject to 8 221.1. A “credit subject credit and accepted in good faith and signed by an to § 221.1 ” is a credit which is (1) secured direct­ officer of the bank originally extending such credit ly or indirectly by any stock (or made to a person in conformity with the requirements of § 221.3(a), described in paragraph (q) of this section), (2) ex­ is obtained and kept with each such transferee ac­ tended for the purpose of purchasing or carrying count: And provided further, That any transfer any margin stock, and (3) not excepted by § 221.1 pursuant to this paragraph is made as a bona fide (a)(2) or § 221.2. 8 As described in § 221.3(a). (n) Segregation of coilateral. (1) The bank Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

544 FEDERAL RESERVE BULLETIN □ JUNE 1969 shall identify all the collateral used to meet the System as requiring reports suitable for supplying requirements of § 221.1 (the entire credit being current information regarding specialists’ use of considered a single credit and collateral being simi­ credit pursuant to this section. larly considered, as required by § 221.1(d)) and (p) Subscriptions issued to stockholders. An shall not cancel the identification of any portion extension of credit need not comply with the other thereof except in circumstances that would permit requirements of this part if it is to enable the the withdrawal of that portion. Such identification customer to acquire a stock by exercising a right to may be made by any reasonable method. acquire such stock which is evidenced by a warrant (2) Only the collateral required to be so identi­ or certificate issued to stockholders and expiring fied shall have loan value for purposes of § 221.1 within 90 days of issuance: Provided, That: or be subject to the restrictions therein specified (1) Each such acquisition under this paragraph with respect to withdrawals and substitutions; and shall be treated separately, and the credit when ex­ (3) For any credit extended to the same cus­ tended shall not exceed 75 per cent of the current tomer that is not subject to § 221.1 (other than a market value of the stock so acquired as determined credit described in § 221.2(b), (d), (f), (g), or by any reasonable method; (h)), the bank shall in good faith require as much (2) After October 20, 1967, at the time credit collateral not so identified as the bank would re­ is extended pursuant to this paragraph, the bank quire (if any) if it held neither the indebtedness shall compute the amount by which the credit ex­ subject to § 221.1 nor the identified collateral. This ceeds the maximum loan value of the collateral shall not be construed, however, to require the as prescribed by § 221.4 and the customer shall re­ bank, after it has extended any credit, to obtain duce the credit by an amount at least equal to any collateral therefor because of any deficiency one-fourth of such sum by the end of each of the 4 in collateral already existing at the opening of succeeding 3-calendar-month periods or until the business on June 15, 1959, or any decline in the credit does not exceed the current maximum loan value or quality of the collateral or in the credit value of the stock, whichever shall occur first, and rating of the customer. if the bank fails to obtain the required quarterly (4) Nothing in this part shall require a bank reduction or a portion thereof with respect to a to waive or forego any lien, and nothing in this particular acquisition within 5 full business days part shall apply to a credit extended to enable the after such reduction is due, the bank shall promptly customer to meet emergency expenses not reason­ sell a portion of the collateral so acquired and apply ably foreseeable, provided the extension of credit the proceeds of the sale to reduce the credit in an is supported by a statement executed by the cus­ amount at least equal to twice the required pay­ tomer and accepted in good faith and signed by an ment or portion thereof for the first 2 such reduc­ officer of the bank as having been so accepted in tions, at least equal to the required payment or por­ conformity with the requirements of § 221.3(a). tion thereof for the third such reduction, and at least For this purpose, such emergency expenses shall sufficient so that the remaining credit does not include expenses arising from circumstances such exceed the current maximum loan value of the re­ as the death or disability of the customer, or some maining collateral after the fourth such reduction: other change in his circumstances involving ex­ Provided, That no such reduction need be in an treme hardship, not reasonably foreseeable at the amount greater than is necessary so that the re­ time the credit was extended. The opportunity to maining credit does not exceed the maximum loan realize monetary gain is not a “change in his value of the remaining collateral determined as of circumstances” for this purpose. the date when the credit was extended; (o) Specialist. In the case of a credit extended (3) While the customer has any credit outstand­ to a member of a national securities exchange who ing at the bank under this paragraph no withdrawal is registered and acts as a specialist in securities on of cash or substitution or withdrawal of stock used the exchange for the purpose of financing such as collateral for such extension of credit shall be member’s transactions as a specialist in such securi­ permissible, except that when the remaining credit ties, the maximum loan value of any stock shall be has become equal to or less than the maximum loan as determined by the bank in good faith: Provided, value of the remaining stock as prescribed for That the specialist’s exchange, in addition to other § 221.1 or § 221.3(t) in § 221.4 (the Supplement requirements applicable to specialists, is designated to Regulation U) whichever is applicable (or with by the Board of Governors of the Federal Reserve respect to credit extended after October 20, 1967, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 545 the requirements of the preceding clause have been brought about within 30 days of such substitution. fulfilled) the remaining stock and related credit (2) Any credit extended after October 20, 1967, shall thereafter be treated as subject to § 221.1 or for the purpose of purchasing or carrying a security § 221.3(t), whichever is applicable, instead of this convertible into a stock registered on a national paragraph. In order to facilitate the exercise of a securities exchange, and any credit extended after right under this paragraph, a bank may permit the July 8, 1969, for the purpose of purchasing or right to be withdrawn from a credit subject to carrying a security convertible into margin stock, if § 221.1 without regard to any other requirement of the credit is secured, directly or indirectly, by any this part. stock, is a credit subject to § 221.1 or § 221.3(t), (q) Credit to certain lenders. Any credit ex­ whichever is applicable. tended to a customer not subject to this part or to (s) Credit secured by collateral other than Part 220 of this Chapter (Regulation T) engaged stocks. A bank may extend credit for the purpose principally, or as one of the customer’s important of purchasing or carrying a margin stock secured activities, in the business of extending credit for by collateral other than stock, and, in the case of the purpose of purchasing or carrying margin stocks such credit, the maximum loan value of the collat­ is a credit for the purpose of purchasing or carry­ eral shall be as determined by the bank in good ing such stocks unless the credit and its purposes are faith. effectively and unmistakably separated and dis­ (t) Credit on convertible debt securities. (1) A associated from any financing or refinancing, for bank may extend credit for the purpose specified the customer or others, of any purchasing or carry­ in § 221.1 on collateral consisting of any debt ing of such stocks. Any credit extended to any such security (i) convertible with or without considera­ customer, unless the credit is so separated and dis­ tion, presently or in the future, into a margin stock associated or is excepted by § 221.2, is a credit or (ii) carrying a warrant or right to subscribe to or “subject to § 221.1” regardless of whether or not purchase such a stock (such a debt security is the credit is secured by any stock; and no bank sometimes referred to herein as a “convertible secu­ shall extend any such credit subject to § 221.1 to rity”). any such customer, without collateral or without the (2) Credit extended under this paragraph shall credit being secured as would be required by this be subject to the same conditions as if it were sub­ part if it were secured by any stock. Any such ject to § 221.1 except: (i) the entire amount of such credit subject to § 221.1 to any such customer shall credit shall be considered a single credit treated be subject to the other provisions of this part appli­ separately from the single credit specified in § 221.1 cable to credit subject to § 221.1, including provi­ (d) and all the collateral securing such credit shall sions regarding withdrawal and substitution of be considered in determining whether or not the collateral. credit complies with this part, and (ii) the maxi­ (r) Convertible securities. (1) If, after June 15, mum loan value of the collateral shall be as pre­ 1959, and prior to October 21, 1967, credit was scribed from time to time in § 221.4 (the Supple­ extended for the purpose of purchasing or carrying ment to Regulation U). a security convertible into a stock registered on a (3) Any convertible security originally eligible national securities exchange and the credit was as collateral for a credit extended under this para­ secured by such a security, and after October 20, graph shall be treated as such as long as continu­ 1967, there is substituted any stock as direct or in­ ously held as collateral for such credit even though direct collateral for such credit, the credit shall it ceases to be convertible or to carry warrants or thereupon be treated as subject to § 221.1 or rights. § 221.3(t), whichever is applicable. In any such (4) In the event that any stock other than a case, the amount of the outstanding credit, or such convertible security is substituted for a convertible amount plus any increase therein to enable the security held as collateral for a credit extended customer to acquire a stock so registered through under this paragraph, the stock and any credit ex­ the conversion of the security pursuant to its terms, tended on it in compliance with this part shall shall not be permitted on the date of such substi­ thereupon be treated as subject to § 221.1 and the tution to exceed the maximum loan value of the credit extended under this paragraph shall be re­ collateral for the credit: Provided, That any reduc­ duced by an amount equal to the maximum loan tion in the credit or deposit of collateral required value of the security withdrawn. on that date to meet this requirement may be (u) Arranging for credit. No bank shall ar- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

546 FEDERAL RESERVE BULLETIN □ JUNE 1969 range for the extension or maintenance of any credit is for the purpose of conducting such market credit for the purpose of purchasing or carrying any making activity, a bank may rely on such a state­ margin stock, except upon the same terms and condi­ ment if executed and accepted in accordance with tions on which the bank itself could extend or main­ the requirements of this paragraph (w) and tain such credit under the provisions of this part. § 221.3(a). (v) The term “margin stock” means any stock 0 (2) An OTC market maker with respect to an which is (1) a stock registered on a national securi­ OTC margin stock is a dealer who has and main­ ties exchange, (2) an OTC margin stock,’ (3) a tains minimum net capital, as defined in a rule of debt security (i) convertible with or without con­ the Securities and Exchange Commission (Rule sideration, presently or in the future, into a margin 15c3-l (17 CFR 240.15c3-l) ) or in the capital stock or (ii) carrying any warrant or right to sub­ rules of an exchange of which he is a member if the scribe to or purchase, presently or in the future, a members thereof are exempt therefrom by Rule margin stock, (4) any such warrant or right, (5) 15c3-l (b)(2) of the Commission (17 CFR any security issued by an investment company other 240.15c3-l(b)(2)), of $25,000 plus $5,000 for than a small business investment company licensed each such stock in excess of 5 in respect of which under the Small Business Investment Company Act he has filed and not withdrawn the notice on of 1958 (15 U.S.C. 661) registered pursuant to sec­ Commission Form X-17A-12(1) (but in no case tion 8 of the Investment Company Act of 1940 (15 does this subparagraph (2) require net capital of U.S.C. 80a-8), unless at least 95 per cent of the more than $250,000), who is in compliance with assets of such company are continuously invested in such rule of the Commission or exchange and who, exempted securities.8 except when such activity is unlawful, meets all of (w) OTC market maker exemption. (1) In the the following conditions with respect to such stock: case of credit extended to an OTC market maker, (i) he regularly publishes bona fide, competitive as defined in subparagraph (2) of this paragraph bid and offer quotations in a recognized inter-dealer (w), for the purpose of purchasing or carrying an quotation system, (ii) he furnishes bona fide, com­ OTC margin stock in order to conduct the market petitive bid and offer quotations to other brokers making activity of such a market maker, the maxi­ and dealers on request, (iii) he is ready, willing, and mum loan value of any OTC margin stock (except able to effect transactions in reasonable amounts, stock that has been identified as a security held and at his quoted prices, with other brokers and for investment pursuant to a rule of the Commis­ dealers, (iv) he has a reasonable average rate of sioner of Internal Revenue (Regs. Section 1-1236- inventory turnover. 1(d)) shall be determined by the bank in good (3) If all or a portion of the credit extended faith: Provided, That in respect of each such stock pursuant to this paragraph (w) ceases to be for he shall have filed with the Securities and Exchange the purpose specified in subparagraph (1) or the Commission a notice of his intent to begin or con­ dealer to whom the credit is extended ceases to be tinue such market making activity (Securities and an OTC market maker as defined in subparagraph Exchange Commission Form X-17A-12(1)) and (2), the credit or such portion thereof shall there­ all other reports required to be filed by market upon be treated as “a credit subject to § 221.1.” makers in OTC margin stocks pursuant to a rule of (x) Combined purchase of mutual funds and the Commission (Rule 17a-12 (17 CFR 240.17a- insurance. An extension of purpose credit provided 12)) and shall not have ceased to engage in such for in a plan, program, or investment contract, market making activity: And provided further, registered with the Securities and Exchange Com­ That the bank shall obtain and retain in its records mission under the Securities Act of 1933 (15 U.S.C. for at least 3 years after such credit is extinguished 11), which provides for the acquisition both of a a statement in conformity with the requirements of security issued by an investment company described Federal Reserve Form U-2, executed by the OTC in subparagraph (5) of paragraph (v) of this sec­ market maker who is the recipient of such credit tion and an insurance policy or contract, shall be and executed and accepted in good faith by a duly subject to all the provisions of this part except that authorized officer of the bank prior to such exten­ where the credit is secured by the security and does sion. In determining whether or not an extension of not exceed the premiums on such policy (plus any applicable interest), the maximum loan value of such • As defined in § 221.3 (Z). security shall be 40 per cent of its current market 7 As defined in § 221.3(d). 8 As defined in 15 U.S.C. 78c(a) (12). value, as determined by any reasonable method. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 547 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO REGULATION U Effective July 8, 1969 SECTION 221.4—SUPPLEMENT making regularly published bona fide bids and offers for such stock for their own accounts, or the stock (a) Maximum loan value of stocks. For the is registered on a securities exchange that is ex­ purpose of § 221.1, the maximum loan value of any empted by the Securities and Exchange Commis­ stock, whether or not registered on a national securi­ sion from registration as a national securities ex­ ties exchange, shall be 20 per cent of its current change pursuant to section 5 of the Act (15 U.S.C. market value, as determined by any reasonable 78e), method. (3) There are 1,500 or more holders of record (b) Maximum Ioan value of convertible debt of the stock who are not officers, directors, or bene­ securities subject to § 221.3(f). For the purpose of ficial owners of 10 per cent or more of the stock, § 221.3 (t), the maximum loan value of any secu­ rity against which credit is extended pursuant to (4) The issuer is organized under the laws of § 221.3(t) shall be 40 per cent of its current market the United States or a State” and it, or a prede­ cessor in interest, has been in existence for at value, as determined by any reasonable method. least 3 years, (c) Retention requirement. For the purpose of § 221.1, in the case of a credit which would exceed (5) The stock has been publicly traded for at lease 6 months, and the maximum loan value of the collateral follow­ ing a withdrawal of collateral, the “retention re­ (6) Daily quotations for both bid and asked quirement” of a stock, whether or not registered prices for the stock are continuously available to on a national securities exchange, and of a conver­ the general public; tible debt security subject to § 221.3(t), shall be and shall meet 3 of the 4 additional requirements 70 per cent of its current market value, as deter­ that: mined by any reasonable method. (7) There are 500,000 or more shares of such (d) Requirements for inclusion on list of OTC stock outstanding in addition to shares held bene­ margin stock. Except as provided in subparagraph ficially by officers, directors, or beneficial owners of (4) of § 221.3(d), OTC margin stock shall meet more than 10 per cent of the stock, the requirements that: (8) The shares described in subparagraph (7) of (1) The stock is subject to registration under this paragraph have a market value in the aggregate § 12(g) (1) of the Securities Exchange Act of 1934 of at least $10 million, (15 U.S.C. 781(g) (1)), or if issued by an insurance (9) The minimum average bid price of such company subject to § 12(g)(2)(G) (15 U.S.C. stock, as determined by the Board in the latest 781(g)(2)(G)) the issuer had at least $1 million month, is at least $10 per share, and of capital and surplus, (10) The issuer had at least $5 million of capital, (2) Five or more dealers stand willing to, and surplus, and undivided profits. do in fact, make a market in such stock including “As defined in 15 U.S.C. 78c(a)(16). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

548 FEDERAL RESERVE BULLETIN n JUNE 1969 INTERPRETATION OF REGULATION G and does not stand to gain or lose except through a change in value of the securities purchased. CONTRIBUTION TO JOINT VENTURE AS The Board is of the opinion that where the EXTENSION OF CREDIT WHEN THE CON­ right of an individual to share in profits and losses TRIBUTION IS DISPROPORTIONATE TO THE of such a joint venture is disproportionate to his CONTRIBUTOR’S SHARE IN THE VEN­ contribution to the venture— TURE’S PROFIT OR LOSSES the joint venture involves an extension of credit The Board recently considered the question by the corporation to the individual, whether a joint venture, structured so that the the extension of credit is to purchase or carry amount of capital contribution to the venture would registered equity securities, and is collateralized by be disproportionate to the right of participation in such securities, and profits or losses, constitutes an “extension of credit” if the corporation is neither a bank subject to for the purpose of Regulation G. Regulation U nor a broker or dealer subject to An individual and a corporation plan to establish Regulation T, the credit is of the kind described a joint venture to engage in the business of buying by section 207.1(a) of Regulation G. and selling securities, including registered equity FOREIGN BANKING securities. The individual would contribute 20 per INTERPRETATION OF REGULATIONS K AND M cent of the capital and receive 80 per cent of the ACQUISITION OF RIGHTS TO ACQUIRE profits or losses; the corporate share would be the SHARES INCIDENT TO EXTENSIONS OF reverse. In computing profits or losses, each par­ CREDIT ticipant would first receive interest at the rate of When the Board grants its specific consent for 8 per cent on his respective capital contribution. a member bank or a corporation organized under Although purchases and sales would be mutually section 25(a) of the Federal Reserve Act (an agreed upon, the corporation could liquidate the “Edge” corporation) or operating pursuant to an joint portfolio if the individual’s share of the losses agreement with the Board under section 25 thereof equaled or exceeded his 20 per cent contribution (an “Agreement” corporation) to acquire a con­ to the venture. The corporation would hold the trolling stock interest in another corporation, the securities, and upon termination of the venture, the terms of such consent ordinarily condition the con­ assets would first be applied to repayment of capital tinued holding of such stock upon the requirement contributions. that the subsidiary limit its activities to those per­ In general, the relationship of joint venture is missible for an Edge corporation. Except for invest­ created when two or more persons combine their ments in the shares of “foreign corporations not money, property, or time in the conduct of some doing business in the United States” to the limited particular line of trade or some particular business extent authorized by the general consent in § 211.8 and agree to share jointly, or in proportion to capital (a) of this part or as otherwise permitted in § 211.8 contributed, the profits and losses of the under­ (b) or § 211.8(c)(2), specific consent of the taking. Board is required before an Edge corporation may The incidents of the joint venture described acquire “shares” in another corporation. Section above, however, closely parallel those of an exten­ 211.8(c)(2) provides that “unless otherwise speci­ sion of margin credit, with the corporation as fied, ‘shares’ in this section includes any rights to lender and the individual as borrower. The corpora­ acquire shares. . . .” tion supplies 80 per cent of the purchase price of In borrowing abroad through affiliates to finance securities in exchange for a net return of 8 per cent their overseas operations, United States corpora­ of the amount advanced plus 20 per cent of any tions have made increasing use of obligations con­ gain. Like a lender of securities credit, the corpora­ vertible into shares of the parent corporation or tion is insulated against loss by retaining the have offered rights to acquire such shares (both such right to liquidate the collateral before the securities convertible obligations and rights hereinafter being decline in price below the amount of its contribu­ collectively referred to as “rights”). Since many for­ tion. Conversely, the individual—like a customer eign subsidiaries of member banks and Edge and who borrows to purchase securities—puts up only Agreement corporations are important sources for 20 per cent of their cost, is entitled to the principal such financing, the question has arisen whether the portion of any appreciation in their value, bears Board should permit such subsidiaries to acquire, the principal risk of loss should that value decline, without its consent, such “rights” to acquire shares Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 549 of corporations which are organized or doing busi­ those States are security interests under § 226.2 (z) ness in the United States. and for the purposes of § 226.7(a) (7), § 226.8(b) Having concluded that such subsidiaries should in (5), and § 226.9. This is the case even if the judg­ certain circumstances be permitted to acquire such ment cannot be entered until after a default by the “rights” without its consent and that section 25(a) obligor. does not require otherwise, the Board hereby speci­ Confession of judgment clauses and cognovit fies that, as used in § 211.8(b), the term “shares” provisions which, by their terms, exclude a lien on does not include “rights” to acquire shares of other all real property which is used or is expected to be corporations, even those organized or doing business used as the principal residence of the customer, in the Uinted States; provided that such “rights” would not bring a transaction under the provisions (1) are exercised only with specific consent of the of § 226.9. Board, (2) are acquired incident to an extension of credit or the purchase of a debt obligation, (3) have OPEN END CREDIT DISTINGUISHED FROM an investment value relatively small in relation to OTHER CREDIT the obligation to which they pertain, and (4) will The fundamental qualification for “open end not cause the subsidiary to have invested more than credit” under § 226.2(r) is that consumer credit $500,000 in the “rights” and shares of any corpora­ be extended on an account pursuant to a plan under tion. which (1) the creditor may permit the customer In this connection it is noted that section 25(a) to make purchases or obtain loans from time to prohibits the purchase and holding of stock (includ­ time directly or indirectly from the creditor, as the ing the exercise of “rights”) if the issuer is “en­ plan may provide; (2) the customer has the privi­ gaged in the general business of buying or selling lege of paying the balance in full or in instalments; goods, wares, merchandise or commodities in the and (3) a finance charge may be computed by the United States [or transacts] any business in the creditor from time to time on an outstanding un­ United States except such as in the judgment of the paid balance. Under an open end credit account Board . . . may be incidental to its international or plan, it is contemplated that there will or may be foreign business. . . .” repetitive transactions on a revolving basis. In certain cases, a form of contract or note re­ TRUTH IN LENDING lating to a single transaction provides that the INTERPRETATIONS OF REGULATION Z finance charge will be computed from time to time SECURITY INTEREST; CONFESSION OF by application of a rate to the unpaid balance and JUDGMENT; COGNOVIT NOTES stipulates required minimum periodic payments. Under § 226.2(z) “security interest” is defined However, the obligor has the privilege of making to include confessed liens whether or not recorded larger and more frequent payments than stipulated and, in general, to include any interest in property or paying the obligation in full at any time without which secures payment or performance of an obli­ penalty. The question arises as to whether the gation. In certain transactions involving a security creditor should make disclosures in such circum­ interest, under § 226.9 the customer has a right of stances under § 226.7 for open end credit accounts rescission. or under § 226.8 for credit other than open end. In some of the States, confession of judgment Although the terms of such a contract or note clauses or cognovit provisions are lawful and make meet the second and third requirements for such a it possible for the holder of an obligation contain­ plan, they do not meet the first of such require­ ing such clause or provision to record a lien on ments nor the basic qualification that consumer property of the obligor simply by recordation entry credit be extended on an account pursuant to a of judgment; the obligor is afforded no opportunity plan. Therefore, disclosures in this case are re­ to enter a defense against such action prior to quired to be made under § 226.8. entry of the judgment. Since confession of judgment clauses and cognovit AGRICULTURAL PURPOSES—WHEN EXEMPT provisions in such States have the effect of depriv­ FROM THE REGULATION ing the obligor of the right to be notified of a pend­ Under § 226.3(a), the Regulation does not apply ing action and to enter a defense in a judicial pro­ to “Extensions of credit to organizations, including ceeding before judgment may be entered or re­ governments, or for business or commercial pur­ corded against him, such clauses and provisions in poses, other than agricultural purposes.” The defini- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

550 FEDERAL RESERVE BULLETIN □ JUNE 1969 tion of “organization” in § 226.2 (s) includes a standing balance shall be made under the provisions corporation, trust, estate, partnership, cooperative, of § 226.8(j). For example, the fact that an agree­ or association as well as governmental entities. ment provides a method of computing an unearned The question arises as to whether the Regulation portion of the finance charge in the event of pre­ applies to extensions of credit to organizations, in­ payment, but does not otherwise meet the require­ cluding governments, for agricultural purposes. ments of § 226.8(h), will not qualify transactions Extensions of credit to organizations, including made pursuant to that agreement for disclosure governments, for agricultural purposes are exempt under the terms of § 226.8(h). from the Regulation. DEPOSIT BALANCES APPLIED TOWARD ANNUAL PERCENTAGE RATE ON SINGLE SATISFACTION OF CUSTOMER'S OBLIGATION ADD-ON RATE TRANSACTIONS Section 226.8(e)(2) provides that required de­ The application of a single add-on rate to trans­ posit balances must be deducted under § 226.8(c) actions of varying maturities, when converted to an (6) and excluded under § 226.8(d)(1) in deter­ annual percentage rate determined by the actuarial mining the amount financed. Subdivision (ii) of method, results in minor variations. Such annual § 226.8(e)(2) provides an exception in the case of percentage rate variations on maturities up to 60 Morris Plan type transactions in which payments in months are so insignificant that separate computa­ the transaction are made and accumulated in a tions are unwarranted. deposit account which is then wholly applied to The question arises as to whether a creditor may satisfy the obligation. disclose a single annual percentage rate on all such Unless the deposit balance account is created for transactions based upon the highest rate which will the sole purpose of accumulating payments and then arise from the application of the same single add-on being applied toward satisfaction of the customer’s rate to each of such transactions. obligation in the transaction, such deposit balance When the same add-on rate is applied to all does not fall within the exception provided in sub­ transactions within a range of maturities up to 60 division (ii). months, and provided that all payments on each In any case in which a deposit balance qualifies transaction are equal in amount and due at equal for this exception, each deposit made into the intervals of time within the limits provided by account shall be considered the same as a payment § 226.5(d), a single annual percentage rate may be on the obligation for the purpose of computations disclosed, in which case it shall be the highest annual and disclosures. percentage rate that may be applicable to any such transactions. WAIVER OF SECURITY INTERESTS—EFFECT ON THE RIGHT OF RESCISSION SERIES OF SALES AS DISTINGUISHED FROM Section 226.9(a) provides for a right of rescis­ REFINANCING, CONSOLIDATING, OR sion “in the case of any [consumer] credit trans­ INCREASING action in which a security interest is or will be The question arises as to the distinction between retained or acquired in any real property which is the provisions of § 226.8(h), series of sales, and the used or is expected to be used as the principal provisions of § 226.8(j), refinancing, consolidating, residence of the customer.” Under § 226.2 (z) or increasing. security interests include mechanic’s and material­ Section 226.8(h) is applicable only when a credit men’s liens. If a creditor effectively waives his right sale is made pursuant to an agreement which pro­ to retain, or to acquire such a lien, he has not re­ vides for the addition of a current (or new) sale to tained or acquired such security interest. The ques­ an existing outstanding balance. In such cases, and tion arises, however, of whether waiver of a credi­ provided that all of the requirements of § 226.8(h) tor’s lien rights is effective to remove a transaction (1) and (2) are met, the disclosures may be made from the scope of rescission when lien rights which at any time not later than the date the first pay­ are not waived arise in favor of subcontractors, ment for that sale is due. workmen, or others who are not creditors in the If there is no agreement, or if the agreement transaction. does not meet all of the requirements of § 226.8(h), The fact that the creditor waives his lien rights the disclosures required in connection with any sub­ does not, in itself, determine whether or not the sequent sale, which is added to a previously out­ transaction is rescindable. If all security interests Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 551 are effectively waived, the transaction is not rescind­ that insurance, unless, of course, the premiums are able. On the other hand, if as a result of the trans­ included in the “amount financed,” in which case action, a security interest is or will be retained or it would have to be disclosed under § 226.8(c)(4) acquired by a subcontractor, workman, or other or (d)(1), as the case may be. person, the transaction is rescindable. In the latter ORDER UNDER BANK MERGER ACT case the creditor would be responsible for deliver­ ing the rescission notice as well as other applicable BANK OF LAS VEGAS, LAS VEGAS, NEVADA disclosures, delaying performance as provided under In the matter of the application of Bank of Las § 226.9(c), and identifying himself as the creditor Vegas for approval of merger with Valley Bank of on the rescission notice. The subcontractors, work­ Nevada. men, and others would not be responsible for de­ livering rescission notices to the customer. Order Approving Merger of Banks There has come before the Board of Governors, “CUSTOMERS" AND JOINT OWNERS OF pursuant to the Bank Merger Act (12 U.S.C. PROPERTY UNDER THE RIGHT OF 1828(c)), an application by the Bank of Las RESCISSION Vegas, Las Vegas, Nevada, a State member bank Section 226.9(f) provides that, for the purposes of the Federal Reserve System, for the Board’s prior of the right of rescission, “customer” shall include approval of the merger of that bank with Valley two or more customers where joint ownership is Bank of Nevada, Reno, Nevada, under the charter involved. The question arises of whether this means of the former and under the name, Valley Bank of that all joint owners of record, regardless of Las Vegas. As an incident to the merger, the four whether or not they are parties to the transaction, offices of Valley Bank of Nevada would become are customers for this purpose, and whether each branches of the resulting bank. Notice of the pro­ of such owners of record (1) must receive dis­ posed merger, in form approved by the Board, has closures and a notice of the right of rescission, (2) been published pursuant to said Act. may exercise the right of rescission, and (3) must Upon consideration of all relevant material in join in signing a waiver if one is appropriately taken the light of the factors set forth in said Act, in­ by the creditor. cluding reports furnished by the Comptroller of the Under § 226.9(f) where there are joint owners, Currency, the Federal Deposit Insurance Corpora­ the right to receive disclosures and notice of the tion, and the Attorney General on the competitive right of rescission, the right to rescind, and the need factors involved in the proposed merger, to sign a waiver of such right, apply only to those It is hereby ordered, for the reasons set forth joint owners who are parties to the transaction. in the Board’s Statement of this date, that said application be and hereby is approved, provided DISCLOSURE OF COST OF PROPERTY INSURANCE WHEN NOT OBTAINABLE FROM that said merger shall not be consummated (a) OR THROUGH THE CREDITOR before the thirtieth calendar day following the date of this Order or (b) later than three months after In many cases a creditor requires insurance the date of this Order unless such period is ex­ against loss or damage to property or liability aris­ tended for good cause by the Board or by the ing out of its use but such insurance is not obtain­ Federal Reserve Bank of San Francisco pursuant able from or through him. The question arises under to delegated authority. § 226.4(a)(6) as to whether such a creditor must Dated at Washington, D.C., this 23rd day of make any disclosures to avoid having to include the May, 1969. insurance premium in the finance charge. By order of the Board of Governors. Irrespective of whether such insurance may be obtained from or through the creditor, if the credi­ Voting for this action: Chairman Martin and Gov­ ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent tor requires property insurance and wishes to ex­ and not voting: Governors Robertson and Daane. clude the cost from the finance charge, he is re­ (Signed) Elizabeth L. Carmichael, quired to state clearly and conspicuously to the Assistant Secretary. customer that he may choose the person through [seal] which the insurance is to be obtained. However, if the insurance is not obtainable from or through the Statement creditor, he is not required to disclose the cost of Bank of Las Vegas, Las Vegas, Nevada, with Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

552 FEDERAL RESERVE BULLETIN ° JUNE 1969 total deposits of $140 million, has applied, pursuant pects. The banking factors with respect to each of to the Bank Merger Act (12 U.S.C. 1828(c)), for the banks proposing to merge are reasonably satis­ the Board’s prior approval of the merger of that factory, as they would be with respect to the result­ bank with Valley Bank of Nevada, Reno, Nevada ing bank. (“Reno Bank”), which has deposits of $22 million.1 Convenience and needs of the communities. The The banks would merge under the charter of Bank proposed merger is in essence a step to transform of Las Vegas, a member of the Federal Reserve the offices of Reno Bank from de facto to de jure System, and under the name, Valley Bank of Las branches of Las Vegas Bank. This change in cor­ Vegas (“Las Vegas Bank”). As an incident to the porate structure would make it simpler for the merger, the four offices of Reno Bank would be­ offices now operated under Reno Bank’s charter to come branches of Las Vegas Bank, increasing the provide the wider range of banking services that number of its offices to 15. are available from Las Vegas Bank, thus enhancing Competition. Las Vegas Bank operates its head the banking convenience of the area served by Reno office and two branches in Las Vegas (population Bank. 130,000); its other eight offices are in the Las Summary and conclusion. In the judgment of the Vegas Standard Metropolitan Statistical Area, Board, the proposed merger would benefit the bank­ which is coterminous with Clark County (popula­ ing convenience of the area served by Reno Bank, tion 240,000), the southernmost county in Nevada. and would not have an adverse effect on banking competition. Las Vegas Bank, with 30 per cent of the deposits, Accordingly, the Board concludes that the appli­ is the second largest of the five commercial banks cation should be approved. that operate offices in the Las Vegas SMSA and, with nearly 15 per cent of the deposits, it is also ORDERS UNDER SECTION 3 OF BANK HOLDING the second largest of Nevada’s nine commercial COMPANY ACT banks. AFFILIATED BANK CORPORATION, Reno Bank operates its head office and one MADISON, WISCONSIN branch in Reno (population 75,000), and has re­ ceived approval to open an additional office there; In the matter of the application of Affiliated its other office is about 36 miles southwest of Reno. Bank Corporation, Madison, Wisconsin, for ap­ All of Reno Bank’s offices are in Washoe County proval of action to become a bank holding company (population 115,000), and are more than 400 miles through the acquisition of 80 per cent or more of northwest of Las Vegas. Reno Bank, with about 7 the voting shares of Bank of Madison and Hilldale per cent of the deposits, is the fourth largest of the State Bank, both of Madison, Wisconsin. five commercial banks that operate offices in the Order Approving Action to Become Reno SMSA; it is the seventh largest bank in the A Bank Holding Company State, with approximately 2 per cent of the total There has come before the Board of Governors, commercial bank deposits. pursuant to section 3(a)(1) of the Bank Holding There is no competition between Las Vegas Bank Company Act of 1956 (12 U.S.C. 1842(a)(1)) and Reno Bank and, although Nevada law permits and section 222.3(a) of the Federal Reserve Regu­ State-wide branching, the development of competi­ lation Y (12 CFR 222.3(a)), an application by tion between them appears unlikely. Reno Bank Affiliated Bank Corporation, Madison, Wisconsin, was organized in 1963 by the present management for the Board’s prior approval of action whereby and substantial shareholders of Las Vegas Bank as Applicant would become a bank holding company an alternative to entering the Reno market through through the acquisition of 80 per cent or more of de novo branching. As of the end of 1968, share­ the voting shares of Bank of Madison and Hilldale holders owning 52 per cent of the stock of Las State Bank, both of Madison, Wisconsin. Vegas Bank also held 81 per cent of the stock of As required by section 3(b) of the Act, the Reno Bank; each bank has nine directors, four of Board notified the Commissioner of Banking of the whom are directors of both. State of Wisconsin of receipt of the application and The proposed merger would not have an adverse requested his views and recommendation. The effect on competition. Commissioner made no objection to approval of Financial and managerial resources and prosthe application. 1 Figures are as of December 31, 1968. Notice of receipt of the application was published Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 553 in the Federal Register on February 4, 1969 (34 the country, may be substantially to lessen com­ Federal Register 1707), which provided an oppor­ petition, or to tend to create a monopoly, or which tunity for interested persons to submit comments in any other manner would be in restraint of trade, and views with respect to the proposed transaction. unless the Board finds that the anticompetitive A copy of the application was forwarded to the effects of the proposed transaction are clearly out­ United States Department of Justice for its con­ weighed in the public interest by the probable sideration. The time for filing comments and views effect of the transaction in meeting the convenience has expired and all those received have been con­ and needs of the community to be served. In each sidered by the Board. case, the Board is required to take into considera­ It is hereby ordered, for the reasons set forth tion the financial and managerial resources and in the Board’s Statement of this date, that said ap­ future prospects of the bank holding company and plication be and hereby is approved, provided that the banks concerned, and the convenience and the action so approved shall not be consummated needs of the community to be served. (a) before the thirtieth calendar day following the Competitive effect of proposed transaction. date of this Order or (b) later than three months Acquisition by Applicant of Madison Bank ($53.6 after the date of this Order, unless such period is million deposits) and Hilldale Bank ($15.2 million extended for good cause by the Board or by the deposits) would have no significant effect on State­ Federal Reserve Bank of Chicago pursuant to wade banking concentration. Applicant would rank delegated authority. thirteenth in size among banking organizations in Dated at Washington, D.C., this 19th day of the State, and would control less than 1 per cent of May, 1969. the total deposits held by banks located therein. By order of the Board of Governors. A close relationship presently exists between the Voting for this action: Chairman Martin and Gov­ two proposed subsidiary banks. Hilldale Bank was ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent organized by the principal stockholders of Madison and not voting: Governors Robertson and Daane. Bank; the two banks have the same president; and (Signed) Elizabeth L. Carmichael, 11 individuals who are regular or advisory direc­ Assistant Secretary. tors of Madison Bank are also directors of Hilldale [seal] Bank. About 63 per cent of the stock of the latter Statement bank is owned by shareholders who also own about Affiliated Bank Corporation, Madison, Wiscon­ 41 per cent of the stock of Madison Bank. sin (“Applicant”), has filed with the Board, pur­ Madison Bank is the second largest of 13 banks suant to section 3(a)(1) of the Bank Holding in the Madison area, and accounts for about 15 per Company Act of 1956, an application for approval cent of area deposits. It is substantially smaller than of action to become a bank holding company the area’s largest bank, which is a subsidiary of the through the acquisition of 80 per cent or more of State’s largest banking organization, and which the voting shares of Bank of Madison (“Madison holds about 40 per cent of deposits held by all area Bank”) and Hilldale State Bank (“Hilldale Bank”), banks. Applicant would be the fourth registered both of Madison, Wisconsin. bank holding company with one or more subsidiary Views and recommendation of supervisory au­ banks in the area. thority. As required by section 3(b) of the Act, Hilldale Bank is located in a shopping center notice of receipt of the application was given to, about four miles west of Madison Bank. It is the and views and recommendation requested of, the sixth largest bank in the Madison area, and accounts Commissioner of Banking of the State of Wiscon­ for about 4 per cent of area deposits. sin. The Commissioner made no objection to ap­ The existing close relationship between Madison proval of the application. Bank and Hilldale Bank precludes meaningful com­ Statutory considerations. Section 3(c) of the Act petition between them. Hilldale Bank was or­ provides that the Board shall not approve an acqui­ ganized in 1961 as a means of offering banking sition that would result in a monopoly or would be services to customers who could not be served with in furtherance of any combination or conspiracy equal convenience by Madison Bank because of its to monopolize or to attempt to monopolize the location and restrictive provisions of State branch­ business of banking in any part of the United ing law. Upon opening of Hilldale Bank, personnel States. Nor may the Board approve a proposed was supplied by Madison Bank, and the need of acquisition the effect of which, in any section of Hilldale Bank for loans was satisfied through sales Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

554 FEDERAL RESERVE BULLETIN □ JUNE 1969 of commercial loans by Madison Bank. The bank­ action would be in the public interest, and that the ing philosophy and services of the two banks have application should be approved. been coordinated, and customers in the area re­ portedly regard the banks as part of the same COMMERCE BANCSHARES, INC., “banking family”. The development of future com­ KANSAS CITY, MISSOURI petition between the two banks would appear to In the matter of the application of Commerce depend upon a weakening of the present relation­ Bancshares, Inc., Kansas City, Missouri, for ap­ ship. There is no evidence that such a development proval of acquisition of more than SO per cent of is likely; the relationship appears to have been ad­ the voting shares of Delmar Bank of University vantageous to both banks, and the extent of com­ City, University City, Missouri. mon ownership has increased slightly since 1961. For the foregoing reasons, the Board concludes Order Approving Acquisition of Bank Stock that consummation of the proposal would not re­ By Bank Holding Company sult in a monopoly or be in furtherance of any combination, conspiracy or attempt to monopolize There has come before the Board of Governors, the business of banking in any part of the United pursuant to section 3(a)(3) of the Bank Holding States, and would not restrain trade, substantially Company Act of 1956 (12 U.S.C. 1842(a)(3)) lessen competition, or tend to create a monopoly in and section 222.3(a) of Federal Reserve Regula­ any part of the country. tion Y (12 CFR 222.3(a)), an application by Financial and managerial resources and future Commerce Bancshares, Inc., Kansas City, Mis­ prospects. Applicant, a new corporation, has no souri, a registered bank holding company, for the financial or operating history. Its projected financial Board’s prior approval of the acquisition of more condition appears satisfactory, its management com­ than 80 per cent of the voting shares of Delmar petent, and its prospects favorable. Bank of University City, University City, Missouri. The financial condition, management, and pros­ As required by section 3(b) of the Act, the pects of Madison Bank are satisfactory. Capital of Board gave written notice of receipt of the applica­ Hilldale Bank is somewhat below desirable levels, tion to the Commissioner of Finance of the State of and Applicant has indicated its intention to in­ Missouri and requested his views and recommenda­ crease the capital of that bank in the event that its tion. The Commissioner recommended approval of application is approved. In the light of that pro­ the application. posal, the financial condition of Hilldale Bank is Notice of receipt of the application was published also regarded as satisfactory, as are its management in the Federal Register on December 24, 1968 (33 and prospects. Federal Register 19211), providing an opportunity Considerations under the banking factors are for interested persons to submit comments and consistent with, and add some weight in favor of, views with respect to the proposal. A copy of the approval of the application. application was forwarded to the United States De­ Convenience and needs of the communities in­ partment of Justice for its consideration. Time for volved. The banking needs of the Madison area filing comments and views has expired and all those appear to be adequately served with reasonable con­ received have been considered by the Board. venience by the 13 banks located there. Consum­ It is hereby ordered, for the reasons set forth mation of Applicant’s proposal would not result in in the Board’s Statement of this date, that said ap­ significant changes in the services of either of the plication be and hereby is approved, provided that proposed subsidiary banks, but would facilitate co­ the action so approved shall not be consummated operation between them in meeting larger loan (a) before the thirtieth calendar day following the demands and in serving the needs of customers of date of this Order or (b) later than three months each of them. While this consideration is of limited after the date of this Order unless such time shall weight in view of the present relationship between be extended by the Board, or by the Federal Re­ the two banks, it lends some support toward ap­ serve Bank of Kansas City pursuant to delegated proval of the application. authority. Summary and conclusion. On the basis of ail Dated at Washington, D. C., this 19th day of relevant facts contained in the record, and in the May, 1969. light of the factors set forth in section 3(c) of the By order of the Board of Governors. Act, it is the Board’s judgment that the proposed Voting for this action: Chairman Martin and Gov- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 555 ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent By order of the Board of Governors. and not voting: Governors Robertson and Daane. Voting for this action: Chairman Martin and Gov­ (Signed) Elizabeth L. Carmichael, ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent and not voting: Governors Robertson and Daane. Assistant Secretary. (Signed) Elizabeth L. Carmichael, [seal] Assistant Secretary. [seal] In the matter of the application of Commerce In the matter of the application of Commerce Bancshares, Inc., Kansas City, Missouri, for ap­ Bancshares, Inc., Kansas City, Missouri, for ap­ proval of acquisition of more than 80 per cent of proval of acquisition of more than 80 per cent of the voting shares of The Kirkwood Bank, Kirk­ the voting shares of Union State Bank, St. Charles, wood, Missouri. Missouri. Order Approving Acquisition of Bank Stock Order Approving Acquisition of Bank Stock By Bank Holding Company By Bank Holding Company There has come before the Board of Governors, There has come before the Board of Governors, pursuant to section 3(a)(3) of the Bank Holding pursuant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)) Company Act of 1956 (12 U.S.C. 1842(a)(3)) and section 222.3(a) of Federal Reserve Regula­ and section 222.3(a) of Federal Reserve Regula­ tion Y (12 CFR 222.3(a)), an application by tion Y (12 CFR 222.3(a)), an application by Commerce Bancshares, Inc., Kansas City, Missouri, Commerce Bancshares, Inc., Kansas City, Missouri, a registered bank holding company, for the Board’s a registered bank holding company, for the Board’s prior approval of the acquisition of more than 80 prior approval of the acquisition of more than 80 per cent of the voting shares of The Kirkwood per cent of the voting shares of Union State Bank, Bank, Kirkwood, Missouri. St. Charles, Missouri. As required by section 3(b) of the Act, the As required by section 3(b) of the Act, the Board gave written notice of receipt of the applica­ Board gave written notice of receipt of the applica­ tion to the Commissioner of Finance of the State of tion to the Commissioner of Finance of the State of Missouri and requested his views and recommenda­ Missouri and requested his views and recommenda­ tion. The Commissioner recommended approval of tion. The Commissioner recommended approval of the application. the application. Notice of receipt of the application was published Notice of receipt of the application was published in the Federal Register on December 24, 1968 (33 in the Federal Register on December 24, 1968 (33 Federal Register 19211), providing an opportunity Federal Register 19211), providing an opportunity for interested persons to submit comments and for interested persons to submit comments and views with respect to the proposal. A copy of the views with respect to the proposal. A copy of the application was forwarded to the United States De­ application was forwarded to the United States De­ partment of Justice for its consideration. Time for partment of Justice for its consideration. Time for filing comments and views has expired and all those filing comments and views has expired and all those received have been considered by the Board. received have been considered by the Board. It is hereby ordered, for the reasons set forth It is hereby ordered, for the reasons set forth in the Board’s Statement of this date, that said ap­ in the Board’s Statement of this date, that said ap­ plication be and hereby is approved, provided that plication be and hereby is approved, provided that the action so approved shall not be consummated the action so approved shall not be consummated (a) before the thirtieth calendar day following the (a) before the thirtieth calendar day following the date of this Order or (b) later than three months date of this Order or (b) later than three months after the date of this Order unless such time shall after the date of this Order unless such time shall be be extended by the Board, or by the Federal Re­ extended by the Board, or by the Federal Reserve serve Bank of Kansas City pursuant to delegated Bank of Kansas City pursuant to delegated au­ authority. thority. Dated at Washington, D. C., this 19th day of Dated at Washington, D. C., this 19th day of May, 1969. May, 1969. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

556 FEDERAL RESERVE BULLETIN □ JUNE 1969 By order of the Board of Governors. Competitive effect of proposed transactions. Voting for this action: Chairman Martin and Gov­ Applicant is the third largest banking organization ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent in the State of Missouri, ranking behind two inde­ and not voting: Governors Robertson and Daane. (Signed) Elizabeth L. Carmichael, pendent banks located in downtown St. Louis. The Assistant Secretary. six subsidiary banks of Applicant hold aggregate [seal] deposits of $592 million,1 or 6.1 per cent of the Statement deposits held by all commercial banks in the State. Commerce Bancshares, Inc., Kansas City, Mis­ Of this amount, about $487 million is accounted souri (“Applicant”), a registered bank holding for by Applicant’s largest subsidiary, Commerce company, has applied to the Board of Governors, Trust Company, Kansas City. Acquisition of Del­ pursuant to section 3(a)(3) of the Bank Holding mar Bank ($36.3 million deposits), Kirkwood Bank Company Act of 1956 (12 U.S.C. 1842(a)(3)), ($25.8 million deposits), and Union Bank ($12.4 for prior approval of the acquisition of more than million deposits) would increase the deposits under 80 per cent of the voting shares of the following Applicant’s control to 6.9 per cent of the State total. Missouri banks: (1) Delmar Bank of University All of the proposed subsidiary banks are located City, University City (“Delmar Bank”); (2) The in the St. Louis Standard Metropolitan Statistical Kirkwood Bank, Kirkwood (“Kirkwood Bank”); Area (“SMSA”), which is composed of the City of and (3) Union State Bank, St. Charles (“Union St. Louis, four Missouri counties, and two counties Bank”). in Illinois. The three banks account for less than 1.5 Although each of the applications has been sepa­ per cent of the deposits held by all banks in the rately considered and is the subject of a separate SMSA. Board Order, because of facts and circumstances A distance of 175 miles or more separates each common to the three applications, this Statement of the proposed subsidiary banks from each of Ap­ contains the Board’s findings and conclusions with plicant’s present subsidiaries, and none of the respect to all three. present subsidiaries serves the St. Louis area. Views and recommendations of supervisory au­ Delmar Bank and Kirkwood Bank are both thority. As required by section 3(b) of the Act, located in St. Louis County, while Union Bank is notice of receipt of the three applications was given located in St. Charles County. Delmar Bank and to the Commissioner of Finance of the State of Kirkwood Bank are about 10 miles apart, and the Missouri, and his views and recommendations were former is 14 miles and the latter 20 miles from requested. The Commissioner recommended ap­ Union Bank. All are conservatively-operated retail proval of each of the applications. banks which serve individuals and small businesses Statutory considerations. Section 3(c) of the Act located in close proximity to their respective offices. provides that the Board shall not approve an acqui­ Each derives less than 2 per cent of its deposits sition that would result in a monopoly or would be from the areas served by the other two. in furtherance of any combination or conspiracy to Delmar Bank is the larger of two banks located monopolize or to attempt to monopolize the busi­ in University City, the third largest of six banks ness of banking in any part of the United States. located in the area which it serves, and the fourth Nor may the Board approve a proposed acquisition largest of 11 banks competing within the area. Six the effect of which, in any section of the country, of the banks are associated with one or more other may be substantially to lessen competition, or to banks in the St. Louis area, including one which is tend to create a monopoly, or which in any other a subsidiary of a registered bank holding company manner would be in restraint of trade, unless the and another which is affiliated with the State’s Board finds that the anticompetitive effects of the largest bank through common ownership. Although proposed transaction are clearly outweighed in the one of the larger banks in its area, the competitive public interest by the probable effect of the trans­ effectiveness of Delmar Bank has been limited, in action in meeting the convenience and needs of the part because of its location in the center of a por­ community to be served. In each case the Board is tion of University City which has suffered from required to take into consideration the financial urban decay, and in part because of conservative and managerial resources and future prospects of policies which it has followed. Exemplifying the the bank holding company and the banks con­ 1A11 banking data are as of June 29, 1968, adjusted to cerned, and the convenience and needs of the reflect holding company applications approved by the community to be served. Board to date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 557 latter is a loan portfolio equal to only 40 per cent to monopolize, and will not substantially lessen of deposits and less than two-thirds the size of its competition, restrain trade, or tend to create a investment portfolio. monopoly in any section of the country. Kirkwood Bank is the larger of two banks lo­ Financial and managerial resources and future cated in Kirkwood, the second largest of four banks prospects. Applicant’s financial condition, manage­ located within the area which it serves, and the ment, and prospects are regarded as satisfactory, as fourth largest of nine banks regarded as competing is the case with its present subsidiaries. within the area. As in the case of Delmar Bank, Each of the proposed subsidiary banks is in good Kirkwood Bank’s size relative to that of other banks financial condition, and their prospects are con­ in its area appears to be more a result of its age sidered to be generally favorable, although the pros­ and established customer relationships than of pects of each would likely be improved by its acqui­ present competitive ability. Shifting traffic and sition by Applicant. The management of each is shopping patterns resulting from residential and regarded as satisfactory, although conservative in freeway construction have placed the bank at some banking philosophy and relatively unaggressive. competitive disadvantage with respect to its loca­ Management of Delmar Bank is approaching the tion, and that disadvantage is compounded by un- usual retirement age, and acquisition by Applicant aggressive policies which it has pursued. The bank’s would provide a solution to any management suc­ loan to deposit ratio is below 30 per cent. cession difficulties which might develop at that Although part of the St. Louis SMSA, St. bank. Charles is somewhat more removed from the heart These considerations are consistent with, and of the metropolitan area than either University City provide some weight in favor of, approval of the or Kirkwood. Union Bank is the second largest of applications. four banks located in St. Charles, the boundary of Convenience and needs of the communities in~ which approximates the service area of the bank. volved. The banking needs of communities served In contrast to University City and Kirkwood, eco­ by Applicant’s present subsidiaries would not be nomic development in St. Charles began relatively affected by consummation of the present proposals, recently, and is accelerating. except to the extent that the broader base of Appli­ Summarizing the competitive effects of the three cant’s operations will permit a strengthening of the proposals, it does not appear that acquisition by specialized services which will be made available to Applicant of any or all of the proposed subsidiary all banks in the group. banks will have undue adverse effects on banks Applicant proposes to improve the services in which compete with any of them. No significant each of the areas served by the proposed subsid­ competition exists between the present and proposed iaries by increasing the lending capabilities and subsidiaries of Applicant, and in view of the restric­ liberalizing loan policies of the banks, and by pro­ tions of State law with respect to branches (each viding specialized advice and facilities to meet area bank is permitted one limited-service facility, lo­ needs. All three banks, and indirectly the commu­ cated within 1,000 yards of its main office), there nities which they serve, would benefit from the is little potential for future competition between efficiencies of a centralized accounting and auditing them. Present competition among the proposed sub­ system and coordinated staff training. Applicant sidiaries is minimal, and, although the distances can also provide needed mortgage financing to the between them are not so great as to preclude the growing St. Charles area, urban redevelopment possibility of future competition, significant future capital to the University City area, and increased competition does not appear likely, based upon consumer credit services in the Kirkwood area. their past operations and unaggressive policies. Trust services, currently offered by only one bank Each of the proposed subsidiaries is subject to sig­ in St. Charles, will be initiated by Union Bank, nificant competition within its service area, and and needed expansion of presently inadequate bank­ larger banks in downtown St. Louis must also be ing quarters of that bank can be effected by Appli­ regarded as competitors, at least with respect to cant without diminishing the bank’s capital position larger customers and commuters. or inhibiting expansion of its loan portfolio. For the foregoing reasons, the Board concludes Considerations relating to the convenience and that consummation of any or all of the present pro­ needs of the communities involved support ap­ posals will not result in a monopoly or be in fur­ proval of each of the applications. therance of any combination, conspiracy or attempt Summary and conclusion. On the basis of all the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

558 FEDERAL RESERVE BULLETIN □ JUNE 1969 relevant facts contained in the record, and in the Dated at Washington, D.C., this 29th day of light of the factors set forth in section 3(c) of the May, 1969. Act, it is the Board’s judgment that each of the By order of the Board of Governors. proposed transactions would be in the public in­ Voting for this action: Chairman Martin and Gov­ ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent terest, and that the applications should be approved. and not voting: Governors Robertson and Daane. DOMINION BANKSHARES CORPORATION, (Signed) Robert P. Forrestal, Assistant Secretary. ROANOKE, VIRGINIA [seal] In the matter of the application of Dominion Statement Bankshares Corporation, Roanoke, Virginia, for ap­ Dominion Bankshares Corporation, Roanoke, proval of acquisition of 80 per cent or more of the Virginia (“Applicant”), a registered bank holding voting shares of Security National Bank, Baileys company, has applied to the Board of Governors, Cross Roads, Falls Church, Virginia, pursuant to section 3(a)(3) of the Bank Holding Order Approving Acquisition of Bank Stock Company Act of 1956 (12 U.S.C. 1842(a)(3)), by Bank Holding Company for prior approval of the acquisition of 80 per There has come before the Board of Governors, cent or more of the voting shares of Security Na­ pursuant to section 3(a)(3) of the Bank Holding tional Bank, Baileys Cross Roads, Falls Church, Company Act of 1956 (12 U.S.C. 1842(a) (3)), Virginia (“Security National”). and section 222.3(a) of Federal Reserve Regula­ Views and recommendations of supervisory au­ tion Y (12 CFR 222.3(a)), an application by thority. As required by section 3(b) of the Act, Dominion Bankshares Corporation, Roanoke, Vir­ the Board notified the Comptroller of the Currency ginia, a registered bank holding company, for the of receipt of the application and requested his Board’s prior approval of the acquisition of 80 per views and recommendation thereon. The Comp­ cent or more of the voting shares of Security Na­ troller recommended approval of the application. tional Bank, Baileys Cross Roads, Falls Church, Statutory considerations. Section 3(c) of the Act Virginia. provides that the Board shall not approve an ac­ As required by section 3(b) of the Act, the quisition that would result in a monopoly or would Board gave written notice of receipt of the appli­ be in furtherance of any combination or conspiracy cation to the Comptroller of the Currency and re­ to monopolize or to attempt to monopolize the quested his views and recommendation. The business of banking in any part of the United States. Comptroller recommended approval of the applica­ Nor may the Board approve a proposed acquisition tion. the effect of which, in any section of the country, Notice of receipt of the application was pub­ may be substantially to lessen competition, or to lished in the Federal Register on March 22, 1969 tend to create a monopoly, or which in any other (34 Federal Register 5567), providing an oppor­ manner would be in restraint of trade, unless the tunity for interested persons to submit comments Board finds that the anticompetitive effects of the and views with respect to the proposed transaction. proposed transaction are clearly outweighed in the A copy of the application was forwarded to the public interest by the probable effect of the trans­ United States Department of Justice for its consid­ action in meeting the convenience and needs of the eration. Time for filing comments and views has community to be served. In each case the Board is expired and all those received have been considered required to take into consideration the financial and by the Board. managerial resources and future prospects of the bank holding company and the banks concerned, It is hereby ordered, for the reasons set forth and the convenience and needs of the community in the Board’s Statement of this date, that said to be served. application be and hereby is approved, provided Competitive effects of the proposed transaction. that the action so approved shall not be consum­ Applicant, the fifth largest banking organization in mated (a) before the thirtieth calendar day follow­ Virginia, controls deposits of $425 million, repre­ ing the date of this Order or (b) later than three senting 6.2 per cent of the total deposits in the months after the date of this Order unless such State.' Completion of the proposed acquisition period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond pur­ 1 Unless otherwise noted, all banking data are as of December 31, 1968, and reflect mergers and acquisitions suant to delegated authority. approved by the appropriate supervisory authorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 559 would increase Applicant’s control of State deposits need for executive management in City Bank, and by .4 per cent. Its relative size would not change for substantial improvement with respect to several and consummation of the proposal would not sig­ aspects of its total operations (1968 Federal Re­ nificantly affect the present degree of State-wide serve Bulletin 1020). In view of the short time concentration. since Applicant’s acquisition of City Bank, the im­ Security National, with six offices and deposits provements and innovations anticipated under of $29 million, has its principal office and four Applicant’s ownership are yet to be fully realized. branches in Fairfax County and has one branch in Accordingly, City Bank’s financial condition, man­ the neighboring city of Falls Church. The areas agement and prospects are considered generally served by the six offices are located in Fairfax fair. County, the City of Falls Church, and some of Security National’s operating history has been the western portions of Arlington County and the marked by a high rate of executive management western portion of the City of Alexandria. Within turnover, and the bank’s capital has been depleted those areas, there are 43 banking offices, 30 of by heavy loan losses. These circumstances make which are operated by registered holding com­ less than favorable Security National’s prospects panies. under present ownership. However, under appli­ With the exception of The City Bank and Trust cant’s ownership, Security National’s capital would Company of Alexandria (“City Bank”) none of be improved, and, through access to Applicant’s Applicant’s subsidiaries are located within 95 miles management resources, Security National’s manage­ of Security National. The nearest offices of Security ment placement and retention problems would National and City Bank are their main offices, appear to be solved, and its overall operations which are approximately 416 miles apart. They placed in a more assured posture. are separated by numerous competing institutions, The foregoing considerations are consistent with, and derive only a small amount of business from and lend weight toward, approval of the applica­ each other’s service areas. None of Applicant’s tion. other subsidiaries competes with Security National. Convenience and needs of the communities in­ While City Bank, with deposits of $9 million, and volved. Consummation of Applicant’s proposal Security National are potential competitors be­ would not affect the convenience or needs of the cause of their proximity to each other and because communities served by its present subsidiaries. State law permits each of them to establish de novo While Applicant plans to broaden the services branches in areas served by the other, the existence to be offered by Security National, the proposed ac­ of numerous competing banks in the intervening quisition’s principal contribution to the commu­ area, and additional considerations hereinafter dis­ nities involved would appear to be the indirect re­ cussed, make it unlikely that significant competition sults of the improvements in Security Bank’s will develop between these banks in the foreseeable management and operations which, as earlier dis­ future. cussed, may reasonably be expected from Appli­ In the light of these facts, the Board concludes cant’s ownership of the bank. that consummation of the proposed acquisition The communities served by Security National are would not result in a monopoly nor be in further­ amply supplied with convenient, full-service bank­ ance of any combination, conspiracy, or attempt to ing outlets, and there is no evidence of major monopolize the business of banking in any area. It unserved banking needs. Security National’s affilia­ does not appear that consummation of the proposal tion with Applicant would provide the affected would have the effect of substantially lessening com­ communities with an additional well-managed, full­ petition or tending to create a monopoly in any service banking institution, the prospect of which section of the country, or would in any manner be weighs favorably toward approval of the applica­ in restraint of trade. Financial and managerial resources and future tion. prospects. The financial condition, management and Summary and conclusion. On the basis of all prospects of Applicant are considered satisfac­ relevant facts contained in the record, and in the tory. Similar findings are warranted with respect light of the factors set forth in section 3(c) of the to all of Applicant’s subsidiaries except for City Act, it is the Board’s judgment that the proposed Bank. In approving Applicant’s acquisition of City transaction would be in the public interest and that Bank in November, 1968, the Board noted the the application should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

560 FEDERAL RESERVE BULLETIN a JUNE 1969 MIDWEST BANCORPORATION, INC. ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent and not voting: Governors Robertson and Daane. KANSAS CITY, MISSOURI (Signed) Robert P. Forrestal, In the matter of the application of Midwest Ban­ Assistant Secretary. corporation, Inc., Kansas City, Missouri, for ap­ [seal] proval of action to become a bank holding company Statement through the acquisition of more than 80 per cent Midwest Bancorporation, Inc., Kansas City, of the voting shares of Laurel Bank, Raytown, Missouri (“Applicant”), has filed with the Board, Missouri, and Platte Woods Bank, Platte Woods, pursuant to section 3(a)(1) of the Bank Holding Missouri. Company Act of 1956, an application for approval Order Approving Action to Become of action to become a bank holding company Bank Holding Company through the acquisition of more than 80 per cent There has come before the Board of Governors, of the voting shares of Laurel Bank, Raytown, Mis­ pursuant to section 3(a)(1) of the Bank Holding souri, and of Platte Woods Bank, Platte Woods, Company Act of 1956 (12 U.S.C. 1842(a)(1)) Missouri. The two banks named are sometimes and section 222.3(a) of Federal Reserve Regula­ hereafter referred to as the “Banks.” tion Y (12 CFR 222.3(a)), an application by Laurel Bank ($11.1 million deposits)1 and Platte Midwest Bancorporation, Inc., Kansas City, Mis­ Woods Bank ($3.7 million deposits) are located in souri, for the Board’s prior approval of action the Kansas City Standard Metropolitan Statistical whereby Applicant would become a bank holding Area, and, at mid-year 1968, ranked 65th and company through the acquisition of more than 80 106th in size, respectively, of the 123 banks in per cent of the voting shares of Laurel Bank, Ray­ that area. The laws of Missouri prohibit branch town, Missouri, and Platte Woods Bank, Platte banking, and each of the Banks has only one office. Woods, Missouri. A substantial degree of common ownership exists As required by section 3(b) of the Act, the between them—two individuals who are executives Board gave written notice of receipt of the applica­ of both Banks own, in the aggregate, 35.2 per cent tion to the Commissioner of Finance of the State of the outstanding stock, of Laurel Bank and 30.1 of Missouri and requested his views and recom­ per cent of that of Platte Woods Bank. mendation. The Commissioner recommended ap­ Views and recommendation of supervisory au­ proval of the application. thority. As required by section 3(b) of the Act, Notice of receipt of the application was published notice of receipt of the application was given to, in the Federal Register on January 10, 1969 (34 and views and recommendation requested of, the Federal Register 1572), providing an opportunity Commissioner of Finance of the State of Mis­ for interested persons to submit comments and souri. The Commissioner recommended approval views with respect to the proposed transaction. A of the application. copy of the application was forwarded to the De­ Statutory considerations. Section 3(c) of the Act partment of Justice for its consideration. Time for provides that the Board shall not approve an ac­ filing comments and views has expired and all quisition that would result in a monopoly or would those received have been considered by the Board. be in furtherance of any combination or conspiracy It is hereby ordered, for the reasons set forth to monopolize or to attempt to monopolize the in the Board’s Statement of this date, that said business of banking in any part of the United application be and hereby is approved, provide States. Nor may the Board approve a proposed that the action so approved shall not be consum­ acquisition the effect of which, in any section of mated (a) before the thirtieth calendar day follow­ the country, may be substantially to lessen compe­ ing the date of this Order or (b) later than three tition, or to tend to create a monopoly, or which months after the date of the Order, unless such in any other manner would be in restraint of trade, period is extended for good cause by the Board unless the Board finds that the anticompetitive ef­ or by the Federal Reserve Bank of Kansas City fects of the proposed transaction are clearly out­ pursuant to delegated authority. weighed in the public interest by the probable effect Dated at Washington, D.C., this 28th day of of the transaction in meeting the convenience and May, 1969. needs of the community to be served. In each case By order of the Board of Governors, 2 Ail banking data are as of December 31, 1968, unless Voting for this action: Chairman Martin and Gov­ otherwise noted. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 561 the Board is required to take into consideration the Moreover, the distance between the Banks, and financial and managerial resources and future pros­ the State’s prohibition of branch banking make pects of the bank holding company and the banks it highly unlikely that any potential competition concerned, and the convenience and needs of the might develop between the Banks that would be community to be served. foreclosed by consummation of the proposal. Competitive effect of proposed transaction. Upon On the record before it, the Board concludes that consummation of the proposed transaction, Appli­ consummation of the proposed transaction would cant would become the State’s fifth bank holding not result in a monopoly, nor be in furtherance of company, ranking fourth among such organiza­ any combination, conspiracy or attempt to monop­ tions, with control of .13 per cent of total deposits olize the business of banking in any relevant area. of all banks in Missouri. All bank holding com­ Further, there appears to be no reasonable proba­ panies would then control 10.3 per cent of such bility that consummation of the proposal would deposits. substantially lessen competition, tend to create a The banks are located 24 miles apart on opposite monopoly, or operate in restraint of trade. sides of metropolitan Kansas City, with some 50 Financial and managerial resources and future banks intervening. There is no competition between prospects. Applicant has no operating history. Its the Banks. Laurel Bank ranks third in size of four projected financial condition is regarded as satis­ banks in its service area; and, in its service area, factory, as is its management, which will be taken Platte Woods Bank ranks second in size of three from the Banks. As applied to the Banks, these banks. Consummation of the transaction would factors are considered satisfactory. increase but slightly the low degree of deposits con­ Convenience and needs of the communities in­ centration in holding companies in Missouri and volved. The banking needs of the individuals and the Kansas City Standard Metropolitan Statistical businesses located in the areas served by the Banks Area. In addition to the aforedescribed common owner­ appear to be adequately served at present by the ship of the Banks, their managements interlock to Banks and their competitors. Considerations relating some extent, and the Banks have been operated to these factors are consistent with approval of the jointly to a limited degree. Inasmuch as the chief application. effect of Applicant’s proposal would be a change Summary and conclusion. On the basis of all in the form of an existing relationship, the extent relevant facts contained in the record, and in the and nature of competition between the Banks and light of the factors set forth in section 3(c) of the other area banks would not be significantly altered, Act, it is the Board’s judgment that the proposed nor would there be any reduction in the number transaction would be in the public interest and that of banking alternatives in any of the relevant areas. the application should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements CHANGES IN THE “Recently, in granting its approval under Section BOARD'S STAFF 25 of the Federal Reserve Act for the establishment The Board of Governors has announced the of branch facilities in the Bahama Islands, the Board appointment of John P. Singleton as Associate indicated that its approval was subject to the under­ Director of the Division of Data Processing, effec­ standing, among others, that the banks were to con­ tive May 28, 1969. duct operations of the branches for the purpose of Prior to his appointment, Mr. Singleton had been developing new international business, and not as a head of Information Systems, Planning and Analy­ means of shifting deposits to such branches from sis, at the McDonnel Douglas Corporation, Hunt­ offices in the United States or for obtaining deposits ington Beach, California. He has a bachelor’s degree that would otherwise be placed in the United States. from Arizona State University and has done gradu­ “The principle enunciated in connection with the ate work in physics, electrical engineering, and Bahama branches applies to the operations of all management and computer sciences. foreign branches of member banks. In the Board’s opinion, the solicitation or acceptance of deposits at foreign branches for purposes unconnected with LETTER TO MEMBER BANKS REGARDING foreign or international transactions is particularly DEPOSITS OF U.S. RESIDENTS AT FOREIGN BRANCHES inappropriate at the present time, when a restrictive On June 3, 1969, the Board of Governors of the monetary policy is in effect.” Federal Reserve System released a letter sent by Chairman Wm. McC. Martin, Jr., to all member PUBLICATION OF ANNUAL REPORT banks with foreign branches regarding the solicita­ The Fifty-Fifth Annual Report of the Board of tion or acceptance of deposits of U.S. residents at Governors of the Federal Reserve System, covering foreign branches. The text of the letter follows: operations of the calendar year 1968, is available “Under Section 19 of the Federal Reserve Act, for distribution. Copies may be obtained upon re­ deposits payable only at a branch of a member bank quest from Publications Services, Division of Ad­ located outside of the States of the United States ministrative Services, Board of Governors of the and the District of Columbia are exempt from any Federal Reserve System, Washington, D.C. 20551. limitations on rates of interest prescribed in Section 19 and Regulation Q. Also, deposits at such branches are not subject to the reserve requirements of Regu­ ADMISSION OF STATE BANKS TO lation D. The general purpose of these exemptions is MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM to allow foreign branches of U.S. banks to compete The following banks were admitted to membership abroad with foreign banks. In these circumstances, in the Federal Reserve System during the period it has long been and continues to be the policy of April 16, 1969, through June 15, 1969: the Federal Reserve System to discourage deposits Montana by United States residents at foreign branches of Billings...............First Citizens Bank of Billings United States banks unless such deposits have been placed to serve a definite, necessary purpose outside Wisconsin the United States. Hudson.....................The State Bank of Hudson 562 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication June 16 Industrial production and nonfarm employment in­ May. Over the past 3 months, such employment has creased further in May, and the unemployment rate expanded by about 100,000 monthly, contrasted with was the same as in April. The value of retail sales average advances of over 300,000 between Septem­ was virtually unchanged in May. Commercial bank ber and February. Manufacturing employment rose credit increased. The money supply and time and by only 18,000 with the only sizable advance in the savings deposits both declined on a daily average electrical equipment industry. The work-week in basis. Bond market yields rose sharply on balance manufacturing has held steady at 40.8 hours, after between mid-May and mid-June. declining from September to February. The unem­ ployment rate was 3.5 per cent in May, the same as INDUSTRIAL PRODUCTION in April. Industrial production in May was 172.8 per cent of the 1957-59 average—up 0.6 per cent from DISTRIBUTION April and 5.2 per cent from a year earlier. Output The value of retail sales in May was about unchanged of business equipment and industrial materials rose from the record high of April and was 4.5 per cent further, but production of consumer goods leveled above a year earlier. The rise over the year is about off. the same as the 4.4 per cent increase in consumer Auto assemblies were about unchanged from the prices of commodities over the year ending in April. reduced April level as strikes continued to affect Sales at durable goods stores in May were 1 per some plants during the month. Production of tele­ cent above the previous month, with dealer deliver­ vision sets declined and output of most other con­ ies of new domestic autos at an annual rate of 8.5 sumer goods, both durable and nondurable, was million units. In the first 10-day selling period in maintained. Production of industrial and commer­ June, sales of new domestic autos rose considerably. cial equipment expanded further to new highs while Sales at nondurable goods stores in May were un­ output of freight and passenger and farm equipment changed from April. changed little. Production of iron and steel and most other materials increased. AGRICULTURE EMPLOYMENT Despite a 13 per cent acreage cutback designed to Nonfarm payroll employment rose by 90,000 in check accumulating stocks, high yields reported on June 1 are expected to boost the winter wheat crop to 1,161 million bushels, only 5 per cent below last year’s record crop. If spring wheat plans are realized, the total 1969 wheat crop may exceed disappearances, at current rates, by about 8 per cent. COMMODITY PRICES Most of the 0.8 per cent rise in wholesale prices from mid-April to mid-May was accounted for by a 2.9 per cent rise in the average price of farm and food products, attributable to sharp increases in livestock, meats, and fresh fruits and vegetables. A sharp decline in prices paid for lumber and ply­ wood limited the advance in the average for in­ dustrial commodities to 0.1 per cent, even though metal and machinery prices continued to rise strongly. Since mid-May, livestock prices have ad- 563 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

vanced further and additional increases have been with substantial growth in the corresponding periods announced for several metals and chemicals. of the two previous years. Net borrowed reserves of member banks aver­ BANK CREDIT, DEPOSITS, AND RESERVES aged about $1,120 million over the four weeks end­ Commercial bank credit increased $900 million in ing May 28 compared with $840 million in April. A May—much less than the $3.1 billion expansion in substantial increase in member bank borrowings was April but more than the $700 million average offset only in small part by an increase in excess monthly rise over the first quarter. Continued strong reserves. loan expansion, reflecting growth in all major cate­ SECURITY MARKETS gories, was offset in part by a substantial reduction in holdings of U.S. Government securities. Hold­ After remaining at around the 6.10-6.15 per cent ings of municipal and Federal agency securities also level in the last half of May, the 3-month Treasury declined slightly further. bill rate rose sharply in the first and second week The money supply declined $400 million in May of June to a level of around 6.60 per cent bid. The following a $1.7 billion increase in April (associ­ rise in Treasury bill rates, as typified by the 3ated in part with a sharp temporary rise in private month rate, reflected continuing tightness in finan­ demand deposits around the Easter weekend) and cial markets and the increased unwillingness of an average monthly rise of $300 million over the Government securities dealers to acquire large po­ first quarter. U.S. Government deposits increased sitions with current financing costs. Yields on inter­ slightly further. Time and savings deposits at com­ mediate- and long-term Government bonds also mercial banks declined $700 million in May after increased markedly over the period. having about leveled off over March and April. Yields on both newly issued and seasoned cor­ Attrition of large negotiable CD’s continued heavy porate bonds and on municipal bonds rose substan­ and consumer-type time and savings deposits at tially between mid-May and mid-June. Stock prices large commercial banks declined slightly compared 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, April; Wholesale, May. more and for 90-day Treasury bills. Latest figures: week ending June 6. 564 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 □ JUNE 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 Bank holding companies, 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, II. L Liabilities Ill, 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 A.R. Annual rate ticular unit (e.g., less than 500,000 when S.A. Monthly (or quarterly) figures adjusted for the unit is millions) seasonal variation .... (1) Zero, (2) no figure to be expected, or (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. “U.S. Govt, securities” may include guaranteed issues of U.S. Govt, agencies (the flow of funds figures also in­ clude not fully guaranteed issues) as well as direct obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled Note (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds........................................ May 1969 A-69.1 Banks and branches, number, by class and State................................. Apr. 1969 A-91 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 Flo 1 w 9 s 6 .- 7 ................................................ May 1968 A-67.10 On, and not on, Federal Reserve Par List, number............................ Feb. 1969 A-95 1968............................................ May 1969 A-68 Income and expenses: Federal Reserve Banks...................... Feb. 1969 A-92 Annually Member banks: Calendar year................................. May 1969 A-95 Bank holding companies: Operating ratios............................. May 1969 A-104 List of, Dec. 31, 1968.................... June 1969 A-91 Insured commercial banks................ May 1969 A-107 Banking offices and deposits of group banks, Dec. 31, 1967....... Aug. 1968 A-93 Stock exchange firms, detailed debit and credit balances: Banking and monetary statistics, 1968.. Mar. 1969 A-92—A-102 Original........................................... Sept. 1968 A-92 May 1969 A-91-A-94 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 □ JUNE 1969 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities 1 Treas­ ury Dis­ Gold cur­ Held counts Other stock rency under and Float 2 F.R. Total 4 out­ Bought repur­ ad­ assets 3 stand­ Total out­ chase vances ing right agree­ ment Averages of daily figures 1929—June. 179 179 978 61 1,317 4,024 2,018 1933—June. 1,933 1,933 250 12 2,208 4,030 2,295 1939—Dec.. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec.. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec.. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec.. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—Dec.. 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966—Dec.. 43,760 43,274 486 570 2,383 46,864 13,158 6,284 1967—Dec.. 48,891 48,810 81 238 2,030 ................. 51,268 12,436 6,777 1968—Apr. 50,090 49,943 147 698 1,641 52,509 10,484 6,797 May. SO>581 50,329 252 759 1,580 52,998 10,452 6,794 June. 51,306 51,160 146 705 1,712 53,813 10,369 6,764 July. 52,090 52,041 49 538 1,870 54,573 10,367 6,721 Aug. 52,646 52,463 183 568 1,760 55,048 10,367 6,733 Sept. 52,222 52,208 14 515 1,981 54,769 10,367 6,737 Oct.. 53,300 53,252 48 427 1,976 55,770 10,367 6,757 Nov. 53,388 53,322 66 569 2,160 56,183 10,367 6,790 Dec.. 52,529 32,454 75 765 3,251 56,610 10,367 6,810 1969—Jan.. 52,665 32,622 43 697 3,054 56,476 10,367 6,802 Feb.. 52,265 32,074 191 824 2,602 55,786 10,367 6,806 Mar. 52,122 31,987 135 918 2,367 55,477 10,367 6,815 lv£y> 5 5 3 2 , , 3 4 9 6 0 3 5 5 2 2 , , 8 2 9 5 8 7 4 2 9 0 2 6 1 ,4 9 0 9 3 6 2 2 , , 1 4 8 2 9 9 2 2 , , 8 83 7 7 6 5 5 9 8 , , 9 8 7 2 1 1 1 1 0 0 , , 3 3 6 6 7 7 6 6, , 7 7 3 5 7 0 Week ending— 1969—Mar. 5........................................... 52,168 32,055 113 734 2,540 55,511 10,367 6,813 12........................................... 52,074 32,040 34 875 2,423 55,427 10,367 6,818 19........................................... 52,188 51,999 189 776 2,548 55,596 10,367 6,816 26........................................... 52,081 51,901 180 964 2,317 55,437 10,367 6,821 Apr. 2........................................... 52,194 51,952 242 1,195 2,047 55,525 10,367 6,810 9.......................................... 52,331 52,105 226 947 2,278 55,640 10,367 6,741 16........................................... 52,173 52,173 759 2,323 2,807 58,112 10,367 6,746 23........................................... 52,512 52,269 243 1,135 2,982 2,849 59,586 10,367 6,748 30”......................................... 52,852 52,549 303 1,118 2,240 2,934 59,277 10,367 6,742 May 7........................................... 53,172 52,590 582 1,603 2,223 2,896 60,015 10,367 6,729 14........................................... 53,308 32,656 652 1,171 2,103 3,146 59,853 10,367 6,734 Jin......................................... 53,278 52,873 405 1,358 2,375 2,887 60,016 10,367 6J39 28”......................................... 53,606 53,212 394 1,303 2,017 2,729 59,757 10,367 6,740 End of month 1969—Mar. 52,430 52,016 414 1,143 1,476 55,143 10,367 6,828 Apr. 53,192 52,585 607 2,531 2,276 2,965 61,106 10,367 6,719 May”............................................... 53,839 53,509 330 1,831 2,472 2,516 60,734 10,367 6,745 Wednesday 1969—Mar. 1 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 2 1 , , 0 9 7 97 6 5 5 2 1 , ,9 0 9 7 7 6 ................. 7 7 4 3 6 4 2 2 , , 0 61 9 3 4 ................. 5 54 5 , , 8 4 7 8 4 6 1 1 0 0 , , 3 3 6 6 7 7 6 6 , , 8 8 1 15 6 19........................................... 52,011 52,011 832 2,482 55,409 10,367 6.821 26........................................... 52,015 51,905 110 997 2,108 55,194 10,367 6,826 Apr. 2........................................... 52,341 52,016 325 1,072 2,080 55,618 10,367 6,828 9........................................... 52,485 »«52,485 658 2,078 55,273 10,367 6,747 16.......................................... 51,907 *«51,907 922 2,590 2,832 58,303 10,367 6,747 23.......................................... 52,316 52,316 1,232 2,148 2,866 58,664 10,367 6,754 30........................................... 53,192 52,585 607 2,531 2,276 2,965 61,106 10,367 6,719 May 7”......................................... 52,782 52,616 166 940 1,997 2,840 58,655 10,367 6,732 14”......................................... 51,672 «5l,506 166 560 1,936 3,573 57,835 10,367 6,737 21”......................................... 53,653 53,067 586 1,103 1,969 2,748 59,577 10,367 6,741 28”................................. 53,509 53,328 181 1,649 1,652 2,530 59,437 10,367 6,743 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank reserves, reserves Cur­ with F.R. Banks Other Period or date rency Treas­ Other F.R. in ury F.R. Lia­ cir­ cash ac­ bilities cula­ hold­ counts3 and Cur­ tion ings Treas­ For­ Other 2 capital3 With rency ury eign F.R. and Total Banks coins Averages of daily figures 4,400 210 30 30 376 2,314 2,314 ..........................1929—June 5,455 272 81 164 350 2,211 2,211 .......................... 1933—June 7,609 2,402 616 739 248 11,473 11,473 ...........................1939—Dec. 10,985 2,189 592 i.s:1 292 12,812 12,812 ...........................1941—Dec. 28,452 2,269 625 1,2'7 493 16,027 16,027 ...........................1945—Dec. 27,806 1,290 615 920 353 739 ................. 17,391 17,391 .......................... 1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 ..........................1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 ........................... 1965—Dec. 44,579 1,191 291 164 429 83 19,568 4,262 23,830 .......................... 1966—Dec. 47,000 1,428 902 150 451 -204 20,753 4,507 25,260 ...........................1967—Dec. 46,642 1,122 738 167 538 -598 21,181 4,365 25,546 .......................... 1968—Apr. 46,873 1,073 1,059 159 483 -581 21,179 4,326 25,505 .......................................May 47,486 973 960 181 471 -474 21,350 4,363 25,713 ......................................June 48,089 836 1,026 164 472 -436 21,510 4,491 26.001 .......................................July 48,194 811 963 170 459 -102 21,653 4,416 26,069 ......................................Aug. 48,474 791 611 131 450 -151 21,567 4,510 26,077 ......................................Sept. 48,632 781 1,054 137 461 -312 22,141 4,512 26,653 .......................................Oct. 49,398 769 798 164 439 -491 22,263 4,522 26,785 ............. Nov. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 ......................................Dec. 49,784 760 602 189 495 -1,174 22,988 5,075 28,063 ..........................1969—Jan. 49,226 762 641 130 488 -932 22,644 4,647 27,291 ......................................Feb. 49,436 728 536 152 463 -902 22,246 4,508 26,754 ......................................Mar. 49,703 707 369 131 510 1,937 22,581 4,498 27,079 ......................................Apr. 49,947 691 549 132 445 1 ,968 23,343 4,533 27,876 ......................................Mayp Week ending— 49,157 758 531 125 481 -718 22,357 4,628 26,985 .....................1969—Mar. 5 49,459 732 465 156 468 -733 22,064 4,704 26,768 12 49,554 725 490 161 486 -978 22,342 4,368 26,710 19 49,471 721 615 165 436 -1,029 22,247 4,375 26,622 ......................................26 49,514 711 576 140 480 -976 22,257 4,486 26,743 .................................Apr. 2 49,766 710 377 155 549 -775 21,966 4,633 26,599 .......................................... 9 49,863 704 8 126 514 n.a. 1,937 22,072 4,544 26,616 ...........................................16 49,681 712 429 121 506 n.a. 1,868 23,384 4,196 27,580 ..........................................23 49,507 698 625 119 469 n.a. 1,929 23,038 4,619 27,657 ..........................................30 49,646 709 591 159 458 2,002 23,546 4,664 28,210 49,959 689 658 127 451 1.971 23,099 4,707 27,806 ..........................................14 49,968 683 528 131 433 1 ,897 23,483 4,268 27,751 ..........................................2P 50,033 680 404 123 442 1,972 23,212 4,484 27,696 ..........................................28* End of month 49,559 715 783 164 498 -950 21,568 4,487 26,055 ..........................1969—Mar. 49,642 661 950 130 458 n.a. 1,970 24,377 4,619 28,996 ......................................Apr. 50,368 698 562 107 438 ................. 2,036 23,637 4,543 28,180 ......................................May” Wednesday 49,370 742 355 149 498 -730 22,284 4,627 26,911 .....................1969—Mar. 5 49,590 732 420 137 468 -918 21,628 4,704 26,332 ..........................................12 49,614 724 552 159 462 -986 22,072 4,370 26,442 ..........................................19 49,541 715 502 137 448 -1,022 22,066 4,376 26,442 ..........................................26 49,723 720 400 145 529 -817 22,113 4,487 26,600 .................................Apr. 2 49,979 707 7 152 559 -759 21,742 4,636 26,378 .......................................... 9 49,869 710 7 130 528 n.a. 1,808 22,365 4,541 26,906 ..........................................16 49,667 709 749 124 455 n.a. 1,880 22,202 4,196 26,398 ..........................................23 49,642 661 950 130 458 n.a. 1,970 24,377 4,619 28,996 ..........................................30 49,923 692 404 161 442 2,017 22,114 4,664 26,778 .................................May 7p 50,074 690 971 115 440 1,837 20,811 4,713 25,524 ..........................................14» 50,048 677 382 140 420 1,941 23,077 4,268 27,345 ..........................................21? 50,419 683 436 117 424 ................. 1,994 22,474 4,484 26,958 ..........................................28” XU.S. Govt, securities include Federal agency obligations. ances on Wed. and end-of-month dates, see subsequent tables on F.R. 2 Beginning with 1960 reflects a minor change in concept; see Feb. Banks. See also note 2. 1961 Bulletin, p. 164. 0 Part allowed as reserves Dec. 1, 1959-Nov. 23, 1960; all allowed 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. thereafter. Beginning with Jan. 1963, figures are estimated except for liabilities and capital” are shown separately; formerly, they were weekly averages. Beginning Sept. 12, 1968, amount is based on closenetted together and reported as “Other F.R. accounts.” of-business figures for reserve period 2 weeks previous to report date. 4 Includes industrial loans and acceptances, when held (industrial 0 Reflects securities sold, and scheduled to be bought back, under loan program discontinued Aug. 21, 1959). For holdings of accept­ matched sale/purchase transactions. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ JUNE 1969 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t l a d l qu R ir e e ­ d 1 Excess B F r i a n o a . n g R w t k s . ­ s s F er r r v e e e e ­ s T h o e t l a d l qu R ire e­ d 1 Excess B r F i a o n a . n g R w t k s . ­ s s F e r r r e v e ­ e e s T h o e t l a d l qui R re e d ­ I Excess B F r i a n o a . n g R w t k s . ­ s se F r r r e v e ­ e e s 1929—June........... 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June........... 2 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec............. 11', 473 6’462 5,oil 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 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 11051 5 26 -21 1964—Dec............. 21,609 21,198 411 243 168 4^083 4^062 21 35 -14 1,083 11086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1966—Dec............. 23',830 23,438 392 557 -165 4', 583 4,556 27 122 -95 1,119 11115 4 54 -50 1967—bee............. 25',260 24^915 345 238 107 5,052 5^034 18 40 -22 1,225 1,217 8 13 -5 1968—Apr............. 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 1,145 1,150 — 5 38 -43 July............. 26,001 25,702 299 525 -226 5,047 5,060 -13 12 -25 1,190 1 181 9 87 -78 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 Oct.............. 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 27,221 26,766 455 ”765 - ”310 5,157 51057 100 230 -130 1'199 1,184 15 85 -70 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 26,754 26,537 217 918 -701 5,040 5,019 21 65 -44 1,204 1,207 -3 98 -101 27,079 26,927 152 996 -844 5'039 5,045 -6 111 -117 1,202 1,202 116 -116 Nfayp.......... 27,876 27,606 270 1,403 -1,133 5,174 5,(34 40 129 -89 1,274 1,281 -7 149 -156 Week ending— 1968—May 1.... 25,518 25,242 276 674 -398 5,014 4,975 39 63 -24 1,200 1 ,197 3 52 -49 8.... 25,698 25,317 381 823 -442 5,023 4,958 65 64 1 1,198 1,194 4 220 -216 15 .. 23 379 24 979 400 712 -312 4,786 4,774 12 124 -112 1,139 1 ,139 49 -49 22.... 25,379 25,057 322 669 -347 4 ,’900 41848 52 52 1,150 1,142 8 23 -15 29.... 25,322 24,931 391 764 -373 4,866 41846 20 79 -59 1,134 1,130 4 19 -15 Dec. 4....... 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 18........ 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 -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 1 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.... 26,710 26,625 85 776 -691 4^977 5,071 -94 91 -185 1,233 1 ,'227 6 37 -31 26.... 26,622 26,354 268 964 -696 4,992 4,909 83 86 -3 1,172 1,178 -6 55 -61 26 743 26 434 309 1,195 —886 5,027 4,999 28 28 1,188 1,184 4 312 -308 9.... 26,599 26,374 225 947 -722 4,903 4,918 -15 75 -90 1,167 1,168 -1 258 -259 16.... 26,616 26,472 144 759 -615 4,969 4,999 -30 105 -135 1,237 1,221 16 37 -21 23. 27,580 27,408 172 1,135 -963 5,235 5,198 37 212 -175 1,192 1 ,206 -14 35 -49 30.... 27,657 27,572 85 1,118 -1,033 5,048 5,077 -29 84 -113 1,215 1,218 -3 53 -56 May 7 .... 28,210 27,727 483 1,603 -1,120 5,212 5,105 107 171 -64 1 ,267 1,259 8 344 -336 14. 27,806 27,545 261 1,171 -910 5,193 5,124 69 121 -52 1,289 1,283 6 20 -14 21»... 27,751 27,655 96 1,358 -1,262 5,190 5,240 -50 188 -238 1,289 1,298 -9 172 -181 28?... 27,696 27,618 78 1,303 -1,225 5,118 5,127 -9 61 -70 1,294 1,303 -9 12 -21 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES ANO 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 T h o e t l a d l Required1 Excess Banks T h o e t l a d l Required * Excess Banks 761 749 12 409 -397 632 610 22 327 -305 ...........................1929—June 648 528 120 58 62 441 344 96 126 -30 ...........................1933—June 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ...........................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ...........................1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ...........................1950—Dec. 7.9J0 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. 8,733 8,713 22 125 -103 7,707 7,337 370 55 315 ...........................1964—Dec. 9,036 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 30 105 -55 8,901 8,634 267 80 187 ...........................1967—Dec. 10,298 10,272 26 283 -257 9,097 8,859 238 229 9 ...........................1968—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 .......................................Oct. 10,863 10,847 16 274 -258 9,747 9,491 256 216 40 ......................................Nov. 10,990 10,900 90 '270 '-180 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. 10,761 10,768 -7 449 -456 9,749 9,543 206 306 -100 .......................................Mar. 10,914 10,923 -9 512 -521 9,924 9,757 167 257 -90 .......................................wfayK 11,258 11,196 62 619 -557 10,171 9,996 175 506 -331 Week ending— 10,290 10,263 27 302 -275 9,014 8,808 206 257 -51 .....................1968—May 1 10,348 10,298 50 253 -203 9,130 8,867 263 286 -23 .......................................... 8 10,230 10,169 61 248 -187 9,225 8,898 327 291 36 15 10,243 10,188 55 259 -204 9,086 8,878 208 387 -179 ..........................................22 10,152 10,118 34 278 -244 9,171 8,836 335 388 -53 ..........................................29 10,824 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 10,953 10,935 — 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 10,763 489 -490 9,705 9,518 187 268 -81 ...........................................12 10,824 10,824 371 -371 9,676 9,503 173 277 -104 ...........................................19 10,740 10,713 25 531 -506 9,718 9,552 166 292 -126 ..........................................26 10,706 10,693 13 512 -499 9,822 9,558 264 371 -107 .................. Apr. 2 10,762 10,738 24 372 -348 9,767 9,550 217 242 -25 ............................................9 10,689 10,743 -54 443 -497 9,721 9,509 212 174 38 ...........................................16 11,109 11,091 18 663 -645 10,044 9,913 131 225 -94 ..........................................23 11,159 11,185 -26 617 -643 10,235 10,092 143 364 -221 ..........................................30 11,400 11,257 143 582 -439 10,331 10,106 225 506 -281 .................................May 7 11,209 11,215 — 6 625 -631 10,115 9,923 192 405 -213 ..........................................14 11,153 11,186 -33 542 -575 10,119 9,931 188 456 -268 ..........................................21* 11,169 11,173 -4 624 -628 10,114 10,015 99 606 -507 ..........................................28» 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. ores 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 □ JUNE 1969 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) — ■■— ..........— 1 Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Net— Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r v c e e e ­ s s s t ro B w o in r g ­ s i b n N a te e n r t k ­ Surplus Pe a r o v c ^ f e . nt Pur- Sales a 2 t c T r - t a o i w o n t a n a s y s ­ l 2 c o h P f a u n s r e e - s t o S f a n le e s t d L e o a t a o le n r s s3 f r B i r n o o o g w m s r - ­ Io N a e n t s at F.R. Federal required chases buying selling dealers* Banks funds deficit reserves banks banks trans. Total—46 banks 1969—Apr. 2............ 90 489 1 ,293 -1,693 14.7 4,625 3,332 2,032 2,593 1,300 654 309 345 9............ 80 561 3,090 -3,572 31.1 5.440 2,350 2,070 3,370 280 1.229 201 1 ,028 16............ -130 451 3,943 -4,524 38.6 6,012 2,069 1,652 4,360 417 1,534 305 1,228 23............ 31 630 3,637 -4,236 35.5 5,632 1,995 1,646 3,986 350 1,086 182 904 30............ -16 353 1,814 -2,184 18.4 4,605 2,791 2,269 2,336 522 852 201 651 May 7............ 186 609 2,504 -2,927 24.4 5,206 2,702 2,233 2,974 470 981 207 774 14............ 189 381 3,288 -3,481 28.9 5,734 2,446 1,912 3,822 534 895 185 709 21............ 7 542 3,283 -3,818 31.3 6,156 2,873 2,145 4,011 728 594 280 314 28............ 9 337 2,528 -2,857 23.7 5,641 3,113 2,051 3,590 1 ,062 481 214 267 8 in New York City 1969—Apr. 2............ 56 -159 215 4.7 1,332 1,491 964 368 527 581 142 440 9............ 28 75 888 -935 20.9 1,833 946 946 888 999 51 948 16............ -24 84 1,807 -1,915 42.0 2,382 575 571 1 ,811 4 1,110 100 1,010 23............ 17 201 1,435 -1,619 34.2 2,202 767 767 1,436 838 58 780 30............ -14 63 292 -370 8.0 1,558 1,265 1,176 382 89 720 76 644 May 7........... 82 146 695 -760 16.4 1,872 1,177 1 ,094 778 83 811 74 737 14............ 126 121 1 ,292 -1,288 27.6 2,118 826 711 1,407 116 701 90 611 21............ -I 164 1,660 -1,825 38.3 2,593 933 850 1,743 83 489 138 352 28............ -3 59 705 -767 16.5 1,939 1,235 925 1,014 309 409 91 317 38 outside New York City 1969—Apr. 2............ 34 489 1,452 -1,908 27.3 3,293 1,841 1,068 2,225 773 73 167 +95 9............ 52 486 2,202 -2,637 37.6 3,607 1,405 1,125 2,482 280 230 150 80 16............ -106 367 2,136 -2,609 36.4 3,630 1,494 1,081 2,549 413 423 205 218 23............ 13 429 2,201 -2,617 36.3 3,430 1,229 880 2,550 350 249 125 124 30............ -2 290 1,522 -1,814 24.9 3,048 1,526 1,093 1,955 433 132 125 7 May 7............ 104 462 1 ,810 -2,168 29.5 3,335 1,525 1,139 2,196 387 170 133 36 14............ 63 260 1 ,996 -2,193 29.6 3,616 1,620 1 ,202 2,415 419 194 95 99 21............ 8 378 1,623 -1,993 26.9 3,564 1,941 1,296 2,268 645 105 142 +38 28............ 12 278 1 ,824 -2,090 28.2 3,702 1,878 1,126 2,576 753 73 123 + 50 5 in City of Chicago 1969—Apr. 2............ 6 290 752 -1,036 96.6 1,027 275 260 767 14 21 20 9............ 3 242 873 -1,111 105.3 1,148 275 257 891 17 17 17 16............ 10 32 881 -902 81.3 1,163 283 282 882 1 55 55 23............ 4 28 877 -902 82.5 1,168 291 281 887 10 23 23 30............ 33 527 -560 50.8 805 278 264 541 15 20 20 May 7............ 7 321 453 -767 67.3 721 269 269 452 29 29 14............ 11 994 -983 84.4 1,225 231 231 994 9 9 21........... 4 161 819 -976 82.6 1,133 314 284 849 30 7 7 28............ 2 10 1,077 -1,084 91.5 1,334 257 253 1,081 4 14 14 33 others 1969—Apr. 2............ 28 200 700 -871 14.7 2,266 1,566 808 1,459 759 52 167 + 115 9........... 48 245 1,329 -1,525 25.6 2,459 1,130 868 1,591 262 213 150 63 16............ -116 335 1,256 -1,707 28.2 2,467 1 ,211 799 1,668 412 368 205 163 23............ to 400 1,324 -1,715 28.0 2,262 938 599 1 ,664 340 226 125 101 30............ -2 258 995 -1,254 20.3 2,243 1,248 830 1,413 418 112 125 + 13 May 7........... 98 141 1,357 -1,401 22.5 2,613 1,256 870 1,743 387 141 133 8 14............ 52 260 1,002 -1,210 19.4 2,391 1,390 971 1,421 419 185 95 90 21............ 3 217 804 -1,018 16.3 2,431 1,627 1 ,012 1 ,419 615 97 142 +45 28............ 9 268 747 -1,006 16.2 2,368 1,621 872 1,495 748 59 123 4-64 1 Based upon reserve balances, including all adjustments applicable to * Federal funds borrowed, net ftinds 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

JUNE 1969 a 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 ast par. bee. 13J Advances and discounts under Advances under Federal Reserve Bank Secs. 13 and 13a * Sec. 10(b) J Rate on Rate on Rate on May 31, Effective Previous May 31, Effective Previous May 31, Effective Previous 1969 date rate 1969 date rate 1969 date rate Boston.......... 6 Apr. 8, 1969 5 ft 616 Apr. 8, 1969 6 7 Apr. 8, 1969 616 New York. . . 6 Apr. 4, 1969 644 Apr. 4, 1969 6 716 Apr. 4, 1969 7 Philadelphia.. 6 Apr. 4, 1969 5ft 616 Apr. 4, 1969 6 7 Apr. 4, 1969 616 Cleveland.... 6 Apr. 4, 1969 644 Apr. 4, 1969 6 716 Apr. 4, 1969 7 Richmond. . . 6 Apr. 4, 1969 616 Apr. 4, 1969 6 7 Apr, 4, 1969 6)6 Atlanta......... 6 Apr. 4, 1969 616 Apr. 4, 1969 6 7 Apr. 4, 1969 644 Chicago........ 6 Apr. 4, 1969 su 6ft Apr. 4, 1969 6 7 Apr. 4, 1969 614 St. Louis....... 6 Apr. 4, 1969 5'4 6^ Apr. 4, 1969 6 7 Apr. 4, 1969 616 Minneapolis.. 6 Apr. 4, 1969 5 >4 616 Apr. 4, 1969 6 716 Apr. 4, 1969 644 Kansas City.. 6 Apr. 4, 1969 516 616 Apr. 4, 1969 6 7 Apr. 4, 1969 6)4 Dallas............ 6 Apr. 4, 1969 516 6ft Apr. 4, 1969 6 7 Apr. 4, 1969 616 San Francisco 6 Apr. 4. 1969 516 6’4 Apr. 4, 1969 6 7 Apr. 4, 1969 616 1 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 RR. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941........ 1 -116 1 1955—Cont. 1960 Sept, 9............................ 2 -244 2ft June 3............................ 4 1942 13............................ 10............................. ■a Apr. 11................................ 1 14............................ Oct. 15................................ ir 1 23............................ 2ft 3 -346 30............................... t ft 3 3 1956 1946 Apr. 13.....................B....... 1® 1963 t 16,-1 1 20............................ July 17............................. 3 -346 ^ May io............................... 1 26............................ 346 ’ 31............................ 3 3 1948 1964 1 -144 1957 Nov. 24............................. 346-4 4 19 . 3 -3'6 3 30............................. 4 4 Aug ” . 2 1 3 3 .. . . . . . . . . . . 1 . . . 9 . . . . 5 . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1ft D N e o c v . , 2 1 2 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 - 4 3 6 46 i 3 % Dec. 1 6 3.... 1 .. 9 . 6 . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 44 -4 6 )4 18 Aug. 21, 1$ 1958 1967 25................................ Jan. 22.....................2..4..4..-.3. 3 4 -446 4 24............................. 2)4-3 14 4 4-446 4 Ja 1 n 95 , 3 16...................... ^ ......... 2 Mar. 1 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V 2ft Nov 2 20 7........................... 446 23............................... 2 21............................ Apr. 18........................... is 1968 F 1 e 9 b 5 . 4 5......................1..).4...-.2.. 1 A M u a g y . 1 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . Mar 2 1 2 5. . . , ........................... 4)6—5 ^ Apr. 1 1 5 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 1)4-144 Sept. 2 1 3....... 2 ........... . ...... . .... 14 2 4-2 2 26 ............... 5 5 f f t t 16............................... Oct. 24.......................... 2 -2J6 2 5ft May 21............................... Nov. 7............................ 246 2ft 30 Dec. 18............................. 544-516 5ft 1955 1959 20............................. 5)6 5ft Apr. 14................. ii Mar. 6................ v 3 ' 15.............................. 16............................ 3 1969 May 2.............................. May 29............................ 3 -316 >8 516-6 6 Aug, 4. June 12................ ' 8..........6..................6. Sept, 11........................... 12............................... 2 18............................ 4 In effect May 31, 1969. .. 6 6 f Preferential rate of 16 of 1 P®r cent for advances secured by U.S, in the following periods (rates in percentages): 1955—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, 2.75; 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, 3.8 5; Dec. 15, 17, 22, 24, above). For data before 1942, see Banking and Monetary Statistics. 28, 30, 31, 3.875:1965—Jan. 4-8, 3.875; 1968—Apr. 4,5,11,15,16,5.125; 1943. pp. 439-42. Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 11-13, 19, 21,24,3.75; 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 □ JUNE 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 4 deposits 2 deposits 2 (all classes of banks) Time depos­ its Reserve Country Other Effective date 1 (all Effective date t city banks banks Sav­ time deposits Central Re­ Coun­ classes ings reserve serve try of depos­ city city banks banks) Under Over Under Over its Under Over banks 3 banks $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ S5 mil­ lion lion lion lion lion lion In effect Dec. 31, 1949........ 22 18 12 5 1966—July 14,21........ 5 6% 5 2 ’4 »4 5 Sept. 8, 15........ 6 1951—Jan. 11,16............... 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2.............. 1* 1* 1953—July 9, I............... 22 19 13 Mar. 16............. 1954—June 24,16............... 21 5 July 29, Aug. 1,,,, 20 18 12 1968—Jan. 11,18........ 16% 17 12 12H 1958—Feb. 27, Mar. 1.... 19% !!* Mar. 20, Apr. 1.... 19 1969—Apr. 17............. 17 17% 12% 13 Apr. 17..................... 18% Apr. 24..................... 18 16% In effect May 31,1969.. 17 17% 12% 13 3 3 6 I960__Sent 1 17W Nov. 24.......... 12 Present legal Dec. 1..................... 16% requirement: 1962—July 28..................... (’) Minimum................. 10 7 3 3 3 Oct. 25, Nov. 1..., ............ 4 Maximum................. 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central 4 Effective Jan. 5, 1967, time deposits such as Christmas and vacation reserve or reserve city banks and the second to the change at country club accounts became subject to same requirements as savings deposits. banks. For changes prior to 1950 see Board’s Annual Reports. 5 See preceding columns for earliest effective date of this rate. 2 Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand balances Note.—All required reserves were held on deposit with F.R. Banks due from domestic banks. June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member 3 Authority of the Board of Governors to classify or reclassify cities banks were allowed to count part of their currency and coin as reserves; as central reserve cities was terminated effective July 28, 1962. effective Nov. 24, 1960, they were allowed to count ail 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 ference between market value (100 per cent) and the maximum Securities Exchange Act of 1934, limit the amount of credit to pur­ loan value. chase and carry registered equity securities that may be extended Regulation G and special margin requirements for bonds con­ on securities as collateral by prescribing a maximum loan value, vertible into stocks were adopted by the Board of Governors effective which is a specified percentage of the market value of the collateral Mar. 11, 1968. at the time the credit is extended; margin requirements are the dif­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. I, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, 1962 1963 1964 1965 1966 1966 1968 Savings deposits: 1 Savings deposits............................. 4 4 4 12 months or more....................... 4 4 }4 4 Other time deposits: 2 Less than 12 months..................... 3 Ms 3K Multiple maturity: 3 90 days or more.................. 5 5 5 Other time deposits: 2 Less than 90 days................ 4 4 4 (30-89 days) 12 months or more............. 4 i: Single-maturity: 6 months to 12 months................. 4*4 Less than $100,000............. 5'A 5 5 90 days to 6 months...................... 5*4 $100,000 or more: Less than 90 days.......................... 4 30-59 days........................... m (30-89 days) 9 6 0 0 - - 1 8 7 9 9 d d ay a s y . s ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5W 54 5 6 4 180 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 U k b s er Y N o e r w k C o it f y Other C b o a u n n ks try 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 ks try City Chicago City Chicago Four weeks ending Mar. 26, 1969 Four weeks ending Apr. 23, 1969 Gross demand—Total... 170,779 38,771 7,193 60,295 64,520 Gross demand-Total.... 172,886 37,831 7,324 61,798 65,933 Interbank................. 19,821 8,012 1,287 8,203 2,320 Interbank.................. 19,896 7,676 1,378 8,432 2,409 U.S. Govt................ 4,126 738 175 1,604 1,609 U.S. Govt................. 3,637 680 163 1,400 1 ,395 Other...................... 146,833 30,021 5,731 50,489 60,592 Other......................... 149,353 29,475 5,784 51,966 62,129 Net demand 1................. 130,011 23,669 5,347 46,552 54,443 Net demand 1................. 132,487 23,883 5,489 47,635 55,480 Time................................ 161,608 18,630 5,739 61,830 75,409 Time.............................. 161,233 18,088 5,593 61,603 75,949 Demand balances due Demand balances due from dom. banks.... 9,037 441 437 2,108 6,051 from dom. banks...... 9,337 442 387 1,874 6,634 Currency and coin.......... 4,519 378 75 1,396 2,670 Currency and coin........... 4,465 369 80 1,389 2,627 Balances with F.R. Balances with F.R. Banks........................... 22,233 4,655 1,137 9,403 7,038 Banks............................ 22,420 4,664 1,117 9,427 7,212 Total reserves held.......... 26,771 5,034 1,212 10,799 9,727 Total reserves held.......... 26,885 5,033 1,197 10,816 9,839 Required....................... 26,569 5,030 1,212 10,787 9,541 Required....................... 26,672 5,028 1,195 10,816 9,633 Excess.......................... 202 4 12 186 Excess........................... 213 5 2 206 i 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 o JUNE 1969 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1969 1969 1968 May 28 May 21 May 14 May 7 Apr. 30 May 31 Apr. 30 May 31 Assets Gold certificate account............................................... 10,022 10,022 10,023 10,023 10,023 10,022 10,023 10,026 Cash............................................................................... 195 203 203 205 204 195 204 424 Discounts and advances: Member bank borrowings.................................... 1,649 1,103 560 940 2,531 1,831 2,53! 1,013 Other.......................................................................... 13 Acceptances: Bought outright............................................. 47 47 52 52 52 46 52 56 Held under repurchase agreements.......................... 50 57 42 44 90 30 90 Federal agency obligations—Held under repurchase agreements............................................................. 73 117 79 80 79 U.S. Govt, securities: Bought outright: Bills..................................................................... 18,699 18,540 17,073 18,183 18,152 18,880 18,152 16,976 Certificates—Special.............................................. Other................................................ Notes.................................................................... 30,501 30,415 30,046 30,046 30,046 30,501 30,046 27,626 Bonds.................................................................... 4/128 4,112 4,387 4,387 4; 387 4,128 4,387 6,023 Total bought outright............................................... 53,328 53,067 51,506 52,616 52,585 53,509 52,585 50,625 Held under repurchase agreements.......................... 108 469 166 166 528 250 528 Total U.S. Govt, securities........................................... 53,436 53,536 51,672 52,782 53,113 53,759 53,113 50,625 Total loans and securities............................................. 55,255 54,860 52,326 53,818 55,865 55,746 55,865 51,707 Cash items in process of collection............................. ”8,178 ”8,941 ”9,829 ”8,748 9,912 8,636 9,912 6,944 Bank premises............................................................... 114 114 114 114 115 114 115 113 Other‘assets: Denominated in foreign currencies...................... 1,914 2,165 2,492 1,771 1,960 1 ,889 1 ,960 1,926 IMF gold deposited i............................................... 233 233 233 233 233 233 233 '247 All other.................................................................... 269 236 734 722 657 280 657 321 Total assets.................................................................... ”76,180 ”76,774 ”75,954 ”75,634 78,969 ”77,115 78,969 71,708 Liabilities F.R, notes...................................................................... 44,209 43,842 43,887 43,744 43,448 44,171 43,448 41,466 Deposits: Member bank reserves......................................... ”22,474 ”23,077 ”20,811 ”22,114 24,377 ”23,637 24,377 21,334 U.S. Treasurer—General account........................... 436 '382 971 404 '950 562 950 956 Foreign...................................................................... 117 140 115 161 130 107 130 422 Other”: IMF gold deposit *................................... 233 233 233 233 233 233 233 247 All other................................................................ 191 187 207 209 225 322 225 258 Total deposits........................................... ”23,451 ”24,019 ”22,337 ”23,121 25,915 ”24,861 25,915 23,217 Deferred availability ca^h items................................... 6,526 6,972 7,893 6,752 7,636 6,047 7,636 5,215 Other liabilities and accrued dividends........................ 462 465 421 427 443 482 443 378 Total liabilities........................................................ ”74,648 ”75,298 74,538 ”74,044 77,442 ”75,561 77,442 70,276 Capital accounts Capital paid in.................................. 654 653 653 652 650 654 650 615 Surplus.......................................................................... 630 630 630 630 630 630 630 598 Other capital accounts.................................................. 248 193 133 308 247 270 247 219 Total liabilities and capital accounts........................... ”76,180 ”76,774 ”75,954 ”75,634 78,969 ”77,115 78,969 71,708 Contingent liability on acceptances purchased for foreign correspondents.......................................... 184 170 133 132 125 183 125 132 U.S. Govt, securities held in custody for foreign account................................................................... 10,122 10,653 UI.317 ’•8,900 r8,526 10,035 ••8,526 8,328 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 46,731 46,492 46,430 46,360 46,383 46,819 46,383 44,006 Collateral held against notes outstanding: Gold certificate account....................................... 3,437 3,437 3,437 3,437 3,522 3,437 3,522 5,504 Eligible paper............................................................ U.S. Govt.* securities................................................. 45,101 45,101 45,101 45,101 45,020 45,111 45,020 39,696 Total collateral............................................................. 48,538 48,538 48,538 48,538 48,542 48,548 48,542 45,200 1 See note 2 to table at bottom of page. 2 No accrued dividend at end-of-December date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 a FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MAY 31, 1969 (In millions of dollars) Phila­ Kan­ San Item Total Boston New del­ Cleve­ Rich­ Atlan­ Chi­ St. Minne­ sas Dallas Fran­ York phia land mond ta cago Louis apolis City cisco Assets Gold certificate account..................... 10,022 751 2,555 541 637 939 565 1,312 376 147 379 478 1 ,342 F.R. notes of other banks................... 640 52 193 35 39 48 90 38 19 11 21 26 68 Other cash........................................... 195 11 19 8 23 14 28 18 19 5 14 ll 25 Discounts and advances: Secured by U.S. Govt, securities.... 1,317 136 167 7 112 87 154 300 76 21 75 77 105 Other................................................ 514 15 107 65 31 76 7 50 70 34 59 Acceptances: Bought outright ........................ 46 ........... 46 Held under repurchase agreements.. 30 30 ........... -.......... ............ Federal agency obligations—Held under repurchase agreements......... 80 80 U.S. Govt, securities: Bought outright......................... 53,309 2,652 13,044 2,879 4,234 3,959 2,813 9,047 1,849 1,059 1,996 2,306 7,671 Held under repurchase agreements.. 250 250 Total loans and securities................... 55,746 2,803 13,724 2,951 4,346 4,046 2,998 9,423 1,932 1,130 2,141 2,417 7,835 Cash items in process of collection... 11,566 1,144 1,866 546 783 816 1,204 1,811 521 400 713 835 927 Bank premises..................................... 114 3 9 2 5 11 18 17 8 4 19 9 9 Other assets: Denominated in foreign currencies.. 1 ,889 91 1480 98 168 98 121 280 66 43 81 108 255 IMF gold deposited 2..................... 233 233 All other......................................... 280 13 71 15 24 22 14 45 10 5 10 12 39 Total assets.......................................... 80,685 4,868 19,150 4,196 6,025 5,994 5,038 12,944 2,951 1,745 3,378 3,896 10,500 Liabilities F.R. notes............................................ 44,811 2,576 10,345 2,593 3,620 4,072 2,357 7,977 1,666 777 1,687 1,559 5,582 Deposits: Member bank reserves............ 23,637 1,215 6,149 1,054 1,611 1,125 1,498 3,247 821 602 1,037 1,478 3,800 U.S. Treasurer—General account.. 562 110 323 1 1 1 ♦ 122 2 Foreign......................... 107 6 317 6 11 6 8 18 4 3 5 7 16 Other: IMF gold deposit 2........... 233 233 AU other....................................... 798 293 176 1 * 7 119 3 ♦ 2 2 182 13 Total deposits...................................... 25,337 1,624 6,898 1,061 1,623 1,139 1,626 3,268 826 607 1,045 1 ,789 3,831 Deferred availability cash items......... 8,501 570 1,365 438 610 665 935 I ,391 391 317 565 444 810 Other liabilities and accrued dividends 482 22 138 25 35 33 23 74 15 10 17 20 70 Total liabilities.................................... 79,131 4,792 18,746 4,117 5,888 5,909 4,941 12,710 2,898 1,711 3,314 3,812 10,293 Capital accounts Capital paid in............................ 654 31 170 33 59 34 42 96 23 15 28 37 86 Surplus................................................. 630 31 160 33 56 33 40 93 22 14 27 36 85 Other capital accounts........................ 270 14 74 13 22 18 15 45 8 5 9 11 36 Total liabilities and capital accounts.. 80,685 4,868 19,150 4,196 6,025 5,994 5,038 12,944 2,951 1,745 3,378 3,896 10,500 Contingent liability on acceptances purchased for foreign correspond­ ents................................................ 183 9 446 10 16 10 12 27 6 4 8 10 25 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)............................................... 46,819 2,687 10,888 2,658 3,846 4,172 2,500 8,217 1,741 801 1 ,742 1,701 5,866 Collateral held against notes outstanding: Gold certificate account.......... 3,437 200 500 300 560 515 ......1..,.0..0.0 180 27 ..........1..55 ........... U.S. Govt.'securities....................... 45,111 2,531 10,600 2,500 3,400 3,730 2,600 7,650 1,650 795 1,775 1,630 6,250 Total collateral.................... 48,548 2,731 11,100 2,800 3,960 4,245 2,600 8,650 1,830 822 1,775 1,785 6,250 i After deducting $1,409 million of participations of other Federal serve Banks. . Reserve Banks. 4 After deducting $137 million of participations of other Federal Re- 2 See note 2 to table at bottom of page A-73. serve Banks. 3 After deducting $90 million of participations of other Federal Re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ JUNE 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 h p r a u o s r s e ­ s s G sa ro le 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 ro le 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 ro le s s s m re s a d h o t e i u f r m t r s i p t , y ­ c G h p r a u o s r s e ­ s s G sa ro le s s s m E s a h x o t c u if r h t r s i . t y tions 1968—Apr .. 1,761 982 167 1,651 982 617 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 iso -6,293 5,586 Dec . .. 6,100 6,334 180 6,100 6,334 180 358 -358 (969—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 Mar........ “385 65 381 217 65 381 49 574 73 -574 Apr 2,121 1,346 206 2,121 1,346 206 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 ro le s s s o E t s r u h x r m i c i f t t h y a s . ­ c G h p r a u o s r s e ­ s s G sa ro le s s s o E t s u r h x r m i c i f t t h y s a . ­ c G h p r a u o s r s e ­ s s G sa ro le s s s s G i e ti c o e u v s r t ­ . p ( u m a n r g c e e r h t n e a t r e 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 e r s ­ ­ , change * 1968—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 1,230 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 Mar.. .. 26 20 ............. 2,044 1,854 130 5 -4 7 137 Apr.. . . 1,929 1,790 708 54 5 43 810 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers* acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) End of period Total P st o e u rl n in d g s B fr e a lg nc ia s n C d an o a lla d r 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 N g l u a e i n l t d h d e e s r r s ­ f S ra w n is c s s 1967—Dec............................... 1,604 1,140 45 3 1 413 1 1 ♦ 2 1968—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 26 2 1 2 4 Nfay............................. 1,926 1,544 50 256 1 67 2 I 2 4 June............................. 1 J 009 503 52 132 25 101 134 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 I 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 1,443 111 4 571 75 1 1 4 3 Dec............................... 2,061 1,444 8 3 433 165 1 1 4 3 1969—jan................................ 1,883 1,443 41 2 25 294 67 1 1 4 6 Feb............................... 1,938 1,450 13 1 25 318 125 1 4 1 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 May 28 May 21 May 14 May 7 Apr. 30 May 31 Apr. 30 May 31 Discounts and advances—Total................................... 1,649 1,103 560 940 2,332 1,831 2,532 1,026 Within 15 days........................................................... 1 ,606 1,091 549 928 2,522 1,801 2,522 1,023 16 days to 90 days..................................................... 43 12 11 12 10 30 10 3 91 days to 1 year....................................................... Acceptances—Total....................................................... 97 104 94 96 142 76 142 56 Within 15 days.......................................................... 63 73 61 63 106 43 106 20 16 days to 90 days..................................................... 34 31 33 33 36 33 36 36 91 days to 1 year....................................................... U.S. Government securities—Total............................. 53,509 53,653 51,672 52,782 53,192 53,839 53,192 50,625 Within 15 days1......................................................... 2,939 3,486 1,706 2,78! 3,155 1,775 3,155 1,383 16 days to 90 days..................................................... 8,508 8,381 9,138 9,061 8,660 9,431 8,660 13,099 91 days to 1 year....................................................... 20,263 20,070 8,308 8,420 8,857 20,834 8,857 22,187 Over 1 year to 5 years............................................... 7,691 7,660 18,507 18,507 18,507 7,691 18,507 7,957 Over 5 years to 10 years........................................... 13,447 13,407 13,376 13,376 13,376 13,447 13,376 5,421 Over 10 years............................................................. 661 649 637 637 637 661 637 578 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts 1 (billions of dollars) Turnover of demand deposits 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 2 e 6 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 2 e 6 r SMSA’s N.Y. 6 others 2 N (e . x Y c . l. ) SMSA’s SMSA’s N.Y. 6 others2 N (e . x Y c . l. ) SMSA’s 1968—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 J 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 1J771.0 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 Aur. .................. 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 41510.6 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 I 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 46.1 37.7 Feb.............................. 8,832.8 3,929.8 2^647.4 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 Apr.............................. 8,883.9 3,902.0 2,028.9 4 981 9 2,953.0 65.9 138.2 66,1 46.8 39.2 May............................ * 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, sec 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 □ JUNE 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 $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939..................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941..................... 11,160 8,120 751 695 44 1,355 2,731 21545 31044 724 I 433 261 556 24 46 1945..................... 28^515 201683 1,274 1,039 73 21313 61782 9,201 71834 2,327 4 220 454 801 7 24 1947..................... 281868 20,020 1,404 11048 65 2 110 61275 91119 8^850 2*548 5 070 428 782 5 17 1950..................... 27,741 191305 11554 1,113 64 2,049 51998 §1529 8,438 2,422 5 043 368 588 4 12 1955..................... 31,158 22,021 1,927 1,312 75 2,151 6,617 9.940 9,136 21736 5 641 307 438 3 12 1958..................... 32J93 22,856 2,182 1,494 83 21186 6,624 10/188 91337 21792 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 I960..................... 321869 231521 21427 1,533 88 2,246 6,691 101536 91348 2 815 5*954 249 316 3 10 1961..................... 331918 241388 21582 11588 92 2 313 61878 10,935 9,531 2 869 6* 106 242 300 3 10 1962..................... 351338 251356 2,782 1 636 97 2 375 7 071 11,395 9,983 2*990 6*448 240 293 3 10 1963..................... 37’,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7’ilO 249 298 3 4 1964.................... 391619 281100 31405 11806 Hi 21517 71543 121717 11,519 3’381 7 590 248 293 2 4 1965..................... 421056 291842 41027 1,908 127 2618 71794 131369 12,214 3 540 8 135 245 288 3 4 1966..................... 441663 31,695 41480 2 051 137 2 756 8,070 14,201 121969 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—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. 461621 321938 51137 1 875 136 2’684 81104 15,00213,683 3 857 9*293 240 286 3 4 May......... 47,202 33,414 51231 11883 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 3 932 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 51449 1 ’863 136 2 ,’728 §1309 15,753 14,115 3,999 9*581 246 287 3 4 Sept........... 48,340 34,161 5,498 11872 136 2’732 8,269 15,654141179 4 002 9*641 241 288 3 4 Oct........ 481719 34,421 5,565 1,900 136 2 ,’763 8,336 15,722 14,299 4,028 9’734 241 289 3 4 Nov........... 491989 351489 51625 1 957 136 2*862 81627 16*,282141500 4 092 9 869 242 290 3 4 Dec........... 50,961 36,163 51691 21049 136 2*993 8,786 161508 141798 41186 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........... 481996 341421 5,603 11895 136 2 784 §1318 15,685 141576 4 080 9*955 243 291 4 4 Mar........... 49,475 34,*792 5 ,’645 11909 136 2*806 8,383 15,915 141682 41102 iO’O23 244 291 3 19 Apr........... 49,642 34,895 5,692 1,934 136 2,815 8,363 15,955 t4,747 4,130 10^073 244 292 3 4 i Outside Treasury and F.R, Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin, overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by standing As security For F.R. 1969 1968 Kind of currency Apr. 30, against F.R. Banks 1969 gold and Treasury Banks and silver cash and Agents Apr. Mar. Apr. certificates Agents 30 31 30 Gold............................................................................... 10,367 (10,023) 2344 Gold certificates............................................................. (10,023) 310,022 1 Federal Reserve notes................................................... 46,382 102 2,936 43,344 43,218 40,818 Treasury currency—Total............................................. 6,719 215 206 6,298 6,256 5,803 Standard silver dollars.............................................. 485 ................. 3 482 482 482 Silver certificates........................................................ 284 Fractional coin........................................................... 5,605 192 ............2..0.2.. 5,211 5,163 4,656 United States notes................................................... 323 19 4 300 305 297 In process of retirement4.......................................... 306 306 306 85 Total—Apr. 30, 1969.................................................... 563,468 (10,023) 661 10,022 3,144 49,642 Mar. 31, 1969................................................... 563,560 (10,025) 684 10,023 3,379 49,475 Apr. 30, 1968................................................... 561,120 (10,416) 1,070 10,127 3,302 46,621 1 Outside Treasury and F.R. Banks. Includes any paper currency held 3 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. A-5. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $233 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

JUNE 1969 □ MONEY SUPPLY; BANK RESERVES A 17 MONEY SUPPLY AND RELATED DATA (In billions of dollars) Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U.S. deposits deposits Govt, Total c C om ur p re o n n c e y n t co D d m e e m p p o o a s n n i e t d n t jus a te d d ­ 1 Total c C om ur p re o n n c e y n t co D d m e e m p p o o a n s n i e t d n t jus a te d d ­ 1 d d e e p m os a it n s d 1 1965—Dec................................................. 166.8 36 3 130.5 146.6 172.0 37.1 134.9 145.2 4.6 1965—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—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 Sept................................................. 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.................................................. 193.7 43.6 150.1 202.5 199 5 43.5 155.9 202.1 4.7 Feb.................................................. 193.8 43.9 149.9 201.0 192.4 43.4 149.0 201.6 6.6 Mar................................................. 194.0 44.2 149. 8 201.0 192 6 43.8 148.8 202.0 4.5 Apr................................................. 195.7 44.2 151.5 200.8 196.7 43.9 152.8 201.6 5.1 May*................................ 195.3 44.5 150.8 200.1 191 7 44.2 147.4 200.9 8.8 Week ending— 1969—Apr. 2.......................................... 195.2 44.3 150.8 201.1 194 0 43.7 150.2 202.3 3.5 9.......................................... 197.9 44.4 153.5 201.2 198 5 44.4 154.1 202.2 3.6 16........................................ 196.4 44.2 152.1 200.9 199 4 44.0 155.4 201.7 3.2 23.......................................... 194.6 44.3 150.3 200.6 196 0 43.7 152.2 201.2 6.4 30.......................................... 193.4 44.2 149.2 200.3 193 2 43.5 149.5 201.1 7.7 May 7.......................................... 194.0 44.3 149.7 200.2 192.3 44.2 148.1 201.0 9.9 14.......................................... 195.1 44.5 150.6 200.2 192 0 44.3 147.8 201.0 9.9 21........................................... 196 9 44.5 152 4 200 1 191 4 44 2 147 2 200.9 8.9 28?......................................... 195.8 44.6 151.2 200.0 190.7 44.1 146.6 200.8 8.0 1 At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection l l p e e p N t t . i i n n o 1 , , t 3 e p 0 p . p 3 — p . - . 1 F A 6 6 o . - 7 9 r 9 2 - r — 8 e 9 v A i ; s - e a 9 d n 7 d . s e F f r o o ie r r s d m b a o e ta n g t in h fo n ly r in g d 1 9 a J 5 ta a 9 n -6 1 . 2 9 , 1 4 9 s 7 e 6 - e 5 3 8 , A , s u s e g e e e . J 1 J u 9 u n 6 n e 7 e 1 B 1 9 9 u 6 6 l 8 4 l B e B t u u in l l­ ­ , a r b b e n a a n d n n c k k y F s s . . o R o u . t T t h s f i e l i m d o r e a e t t h ; t d h a ( e e 2 n p ) T o f t s h o re i o r t e a s s s i e g u a n r d d y u j d , u e e s F m te . t R a o d n . d d a B o r b e a m a n l e a k ti s n s m t , c i c e e a s n c d a d o e t m p v F o m a . s R u e it l . r s t s c B ia a o a l t n f k b a a s a l l ; l l n k a c c s n o o d m m a ( m m n 3 d ) e e r r c c c t u h i i a a r e ­ l l 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 j m ec e t n to ts 2 Member bank reserves re D se e r p v o e s i r t e s q s u u ir b e je m c e t n to ts 2 Period Non­ Re­ Time Pri­ U.S. Non­ Re­ Time Pri­ U.S. Total ro b w o e r­ d quired Total sa a v n in d g s de v m at a e n d d G em o a vt n , d Total r b o o w r e ­ d quired Total sa a v n in d g s de v m at a e n d de G m o a v n t, d 1965—Dec....... 23.26 22.82 22.83 236.6 121.2 111 .0 4.4 22.72 22.27 22.27 239.0 119.8 115.2 4.0 1966—Dec....... 23.52 22.98 23.17 244.6 129.4 111.7 3.5 23.83 23.27 23.44 247.1 127.9 116.1 3.0 1967—Dec....... 25.88 25.62 25.53 273.2 149.9 118.6 4.6 25.26 25.02 24.92 275.9 148.1 123.3 4.5 1968—May.... 26.25 25.52 25.86 277.3 151.5 122.1 3.7 25.51 24.76 25.09 276.5 152.3 118.6 5.6 June.. . . 26.43 25.77 26.08 278.8 151.8 123.2 3.9 25.71 25.02 25.36 278.3 152.2 121.3 4.8 July. ... 26.57 26.05 26.26 280.9 153.8 124.3 2.7 26.00 25,48 25.70 281.7 154.1 122.6 5.0 Aug...... 27.06 26.52 26.73 285.9 156.5 124.6 4.8 26.07 25.50 25.69 283.6 157.2 121.7 4.8 Sept.. . . 27.12 26.67 26.76 287.9 158.9 123.6 5.3 26.08 25.56 25.69 286.7 158.6 123,0 5.2 Oct....... 27.29 26.86 26.97 290.9 161.5 124.5 5.0 26.65 26.23 26.39 291.2 161.0 124.8 5.4 Nov.. .. 27.45 26.86 27.14 293.6 163.5 125.4 4.7 26.79 26.22 26.46 292.4 162,3 126.4 3.6 Dec....... 27.71 26.96 27.35 296.7 165.8 126.7 4.2 27.22 26.46 26.77 299.7 163.8 131.8 4.1 1969—Jan........ 27.85 27.03 27.61 295.1 163.2 126.6 5.3 28.06 27.37 27.85 299.0 162.7 132.1 4.2 Feb....... 27.74 26.88 27.50 294.8 161.0 127.2 6.7 27.29 26.47 27.06 293.9 161,8 126.2 5.9 Mar.. . . 27.64 26.69 27.39 292.3 160.5 126.9 4.8 26,75 25.84 26.54 291.4 161.6 125.9 3.9 Apr....... 27.50 26.50 27.32 293.6 160.1 127.6 5.8 27.08 26.08 26.93 294.2 160.9 128.7 4.5 May.?. . 27.84 26.50 27.57 293.0 159.3 127.8 5.9 27,88 26.47 27.61 292.2 160.1 124.2 7.9 1 Series revised. Averages of daily figures. Data reflect percentage re­ 9, 1966, balances accumulated for repayment of personal loans were elim­ serve requirements made effective Apr. 23, 1969. Required reserves are inated from time deposits for reserve purposes. Jan. 1969 data are not based on average deposits with a 2-week lag. comparable with earlier data due to the withdrawal from the system on 2 Averages of daily figures. Deposits subject to reserve requirements in­ Jan. 2, 1969, of a large member bank. clude total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits ex­ Note.—Back data for the period 1947 to date may be obtained from cept those due to the U.S. Govt., less cash items in process of collection the Banking Section, Division of Research and Statistics, Board of Gover­ and demand balances due from domestic commercial banks. Effective June nors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 18 BANKS AND THE MONETARY SYSTEMS ° JUNE 1969 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas­ Total Date c u u ry r­ U.S. Government securities li i a ti b es il­ Total Ca an p d it al Gold s r o e t i a n n u n g c t d ­ y ­ Total n L e o t a n 1, s , 2 Total s C b a a a v o n n i m n d k g s l. s R F B e e a s d n e e k r r v s a e l Other3 O r s it e t i h e c e u s ­ r 2 ca a n p n e it d t a l, c d u e r a p r n e o d n s i c ts y c m o n a u is e c n c ­ t t . s , 1947—pec. 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—-bee. 30................... 22,706 4,636 171,667 60'366 96^560 72,894 20 ,'778 2388 14j741 199,008 184,384 14^24 1967—Dec. 30................... 11,982 6,784 468,943 282,040 117,064 66,752 49,112 1,200 69339 487 309 444,043 43:670 1968—May 29................. 10,400 6,800 472,400 283,100 116,300 64,700 50,500 1,100 72,900 489,300 441,300 48,200 10,367 6,708 479,667 289,920 115,818 62,809 52,230 779 73,929 496 342 447,839 48,901 July 31.................. 10,400 6,700 484,600 292,300 117300 64,700 52,400 800 74,400 501,700 451,700 50 ,’606 10,400 6,700 485,500 291,100 118:400 65,700 521600 100 761000 502,600 451,700 50,900 10,400 6 J 700 492,500 295,700 119,100 66 ,'700 52:400 100 77’366 509 300 458,100 51,500 Oct. 30................... 10,400 6,800 498 J00 296,800 122,400 68300 53300 100 78,900 515,300 464 300 51,100 10^400 6,800 500,100 300,400 120,000 66300 53,200 100 79300 517,300 466 300 50 900 Dec. 31................... 10,367 6 795 514,427 311 334 121 273 68,285 52 937 51 81 820 531 389 484,212 47 379 1969—Jan. 29................... 10,400 6,800 504,800 304,300 119,500 67,100 52,300 100 81,000 522,000 469,900 52,100 Feb. 26................... 10,400 6,800 503’000 306,000 llS^sdd 63 300 51 300 100 81,500 5 20 300 466^00 53 300 Mar. 26................... 10,400 6,800 504,100 307:300 IMledO 62,500 52,000 100 82,300 521,300 466 J00 54J00 Apr. 30»................. 10,400 6,700 510,200 312,400 114300 61,800 53 100 100 82,900 527,300 471 300 55,600 May 28’................. 10,400 6,700 506,800 311,700 112,700 59,200 53,400 100 82,500 523,900 465,300 38,700 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date For­ Total o b r u C e a t n s n u c i k r d y ­ s e d ju m e s D p a t a e o d e n d s ­ ­ d i t s 3 Total o b r u C e a t n s n u c i k r d y ­ s e d ju e m s D p a t a e o d e n s d ­ ­ d i t s 3 Total b m a C e n o r k c m s ia ­ 1 l b s M a a u v n i k t n u s g a s 4 l S P t a S e o v y m s i s n t ­ a 3 g l s e n i e g t n , 7 T h c i r n u o a e g r s l a d y s h s ­ ­ s b a c a a v o A n n i m n d k t g s l , s B F a A .R n t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1930—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—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 JOO 184.700 41,500 143,200 257,800 194,900 63,000 2,000 800 5,300 1,000 Sept. 25. 186,600 41,400 145,200 185,400 41,500 143,900 259,900 196,400 63,500 2,100 800 8,900 1,000 Oct. 30.... 188,400 41,600 146300 190,100 41,800 148,300 263,700 200,000 63,700 2,100 800 6,400 1,200 Nov, 27.... 190 J00 42,300 148300 193,800 43300 1501300 265,400 201,500 63.900 2,400 800 3,600 400 Dec. 31.... 199,600 42,600 157:000 207:347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Jan. 29.... 190,100 42,800 147,300 192,500 42,200 150,400 266,000 201,200 64,900 2,200 800 7,900 500 Feb. 26.... 191 300 42,800 148,500 190300 42,300 148,100 266^00 201,600 65,200 2,100 800 6,200 600 Mar. 26.... 193,500 43300 150,300 190:?00 42,800 147:900 267 J00 201 J00 65,900 2,100 700 4,600 500 Apr. 30*... 192,000 43,300 148,700 192:000 42,900 149 J00 266:400 200,700 65,700 2,300 700 9,400 1,000 May 28«... 191,000 43,600 147,400 188,700 43,500 145,200 266,400 200,600 65,800 ......2..,.1..00 700 6,900 400 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 t 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 $4 00 pothecated deposits are shown in a table on p. A-23. million to demand deposits). 2 See note 2 at bottom of p. A-22. 3 After June 30, 1967, Postal Savings System accounts were eliminated Note.—For back figures and descriptions of the consolidated condition from this Statement. statement and the seasonally adjusted series on currency outside banks 4 Series begin in 1946; data are available only last Wed. of month. and demand deposits adjusted, see “Banks and the Monetary System,” 3 Other than interbank and U.S. Govt., less cash items in process of Section 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

JUNE 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— Securities Total Interbank3 Other Total Num­ Cla a s n s d o d f a b te ank Total Lo 1 a , n 2 s G U o .S vt . . Oth 2 er a C ss a e s t h s 3 c b c o a i a l a l u i p i n t c a n i i d ­ e t t ­ a s s l ^ Total 3 m D a e n ­ d Time U.S D . e ma O n t d her Ti 1 m .3 e r B i o n o g w r s ­ ­ c c o a a u p c n i ­ t t a s l ba b o n e f k r s Govt. All banka: 1941—Dec. 31....... 61,126 26,615 25,511 8,99927,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31............... 140,227 30,361 101,281 8,57735,415 177,332 165,612 14,065 105,935 45,613 227 10,542 14,553 1947—Dec. 31«............. 134,92<l 43,002 81,195 10,721 38,381 175,091 161,865 12,79! 240 1,34€ 94,381 53,105 6611,948 14,714 1967—Dec. 30............. 424,134287,543 66,75269,83978,924517,374455,501 21,883 1,314 5,24€ 184,139242,925 5,84639,371 14,223 1968—May 29............. 429,790292,180 64,69072,92065,980509,9204,53990 17,340 1,100 5,060 165,260250,830 9,70040,220 14,221 June 29............. 434,415 297,677 62.80973,92976,293 525,856456,874 20,638 1 ,095 4,977 177,93€ 252,234 8,19640,885 14,224 July 31............. 440,760 301,620 64,74€ 74.40070,540 526,10€ 454,14€ 19,170 1,31€ 5,800 172,69€ 255,17010,15040,850 14,219 Aug. 28............. 443,320301,640 65,68C 76,000 67,930525,72€ 451,33€ 18,020 1,35€ 4,97( 168,80€ 258,19€ 11,13€41,030 14,216 Sept. 25 450,040305,710 66,68€ 77,65070,840535,690 459,99€ 19,250 1,410 8,54€ 170,580260,210 11,66041,280 14,209 Oct. 30............. 455,630307,930 68.76C 78,94€ 72,690 543,41€ 467,33€ 19,69C 1,330 6,07( 176,22€ 264,020 11,67€ 41,590 14,205 Nov. 27............. 458,600312,210 66,73079,66077,600551,410472,83020,500 1,260 3,250 182,100265,720 13,02041,770 14,187 Dec. 31............. 470,167320,062 68,28581,82084,748571,805 498,94524,747 1,213 5,017 199,973267,995 8,97242,275 14,179 1969—Jan. 29............. 464,280316,140 67,11081,03072,680552,490472,73019,350 1 ,080 7,540 178,370266,390 12,83042,160 14,172 Feb. 26............. 463,440318,480 63,46081,50072,480552,830469,81019,550 1,010 5,830 176,330267,090 13,01042,530 14,172 Mar. 26............. 465,300320,540 62,50082,26072,990555,460 469,63019,910 990 4,250 176,440268,040 14,36042,720 14,176 Apr. 30”........... 470,100325,440 61,77082,89082,400570,010481,89021,230 950 9,000 183,970266,740 15,78043,170 14,168 May 28”............ 469,000327,330 59,21082,46078,050564,860472,77020,990 940 6,580 177,530266,730 17,49043,320 14,167 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—Dec. 31............. 124,019 26,083 90,606 7,331 34,806160,312 150,227 14 065 105 921 30,241 219 8,950 14,011 1947—Dec. 31«........... 116,284 38,057 69,221 9,00637,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1967—Dec. 30............. 359,903235,954 62,47361,47777,928451,012395,00821,883 1,314 5,234184,066182,511 5,77734,384 13,722 1968—May 29............. 363,110239,300 60,32063,49065,100441,150377,460 17,340 1,100 5,060165,180188,780 9,70035,110 13,720 June 29............. 367,560244,580 58,60464,37675,334456,827394,00420,638 1,094 4,970177,837 189,465 8,131 35,774 13,723 July 31............. 373,480248,370 60,53064,58069,610456,670391,33019,170 1,310 5,800172,610192,44010,15035,740 13,717 Aug. 28............. 375,550248,050 61,48066,02067,020455,820388,28018,020 1,350 4,970168,720195,220 11,13035,850 13,714 Sept. 25 382,080 251,920 62,54067,62069,850 465,490396,410 19,250 I ,410 8,540 170,480 196,730 11,66036,090 13,707 Oct. 30............. 387,450 253,860 64,76068,83071,780473,100403,580 19,690 1 ,330 6,070 176,120200,370 11,67036,400 13,703 Nov. 27............. 390,010 257,730 62,82069,46076,690 480,640408,83020,500 1,260 3,250 182,000201,820 13,02036,510 13,687 Dec. 31............. 401,262265,259 64,46671,53783,752500,657434,02324,747 1,211 5,010 199,901 203,154 8,89937,006 13,679 1969—Jan. 29............. 394,820261,130 63,15070,54071,850 480,940407,780 19,350 1,080 7,540 178,270201 ,540 12,830 36,870 13,673 Feb. 26............. 393,470263,120 59,47070,88071,590 480,700404,520 19,550 1,010 5,830 176,230201,900 13,010 37,180 13,673 Mar. 26............. 394,900264,970 58,51071,42072,090482,870403,670 19,910 990 4,250 176,360202,160 14,360 37,360 13,677 Apr. 30»........... 399,550269,710 57,87071,97081,610497,400416,11021,230 950 9,000 183,890201,040 15,78037,800 13,669 May 28”........... 397,900271,330 55,22071,35077,240491,670406,85020,990 940 6,580 177,450200,890 17,49037,890 13,668 Member banks: 1941—Dec, 31...... 43,521 18,021 19,539 5,961 23,123 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31............. 107,183 22,775 78,338 6,07029,845 138,304 129,670 13,576 6422,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31............. 97,846 32,628 57,914 7,30432,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1967—Dec. 30............. 293,120 196,849 46,95649,31568,946373,584326,03320,811 1,169 4,631 151,980 147,442 5,37028,098 6,071 1968—May 29.............. 294,364 198,874 44,73350,75757,415 363,139308,378 16,574 955 4,282 135,242151,325 9,07328,706 6,041 June 29............. 297,630203,016 43,361 51,25367,130376,904322,990 19,644 934 4,126146,470151,816 7,68429,139 6,039 July 31............. 303,009206,378 45,05751,57461,854376,785320,310 18,229 1,146 4,988 141,559 154,388 9,76329,160 6,026 Aug. 28.............. 304,669205,850 45,89852,921 59,497375,766317,186 17,088 1,193 4,181 138,031 156,693 10,68429,240 6,019 Sept. 25 309,985208,917 46,75554,31361,846383,685 323,73018,275 1,246 7,468 139,166157,575 11,19229,415 6,010 Oct. 30............. 314,164210,270 48,70455,19063,275389,598329,287 18,673 1,169 5,226143,684160,535 11,15329,687 6,002 Nov. 27............. 315,615213,092 46,82055,70367,675395,535 333,142 19,462 1,098 2,545 148,083 161,95412,45029,739 5,990 Dec. 31............. 325,086220,285 47,881 56,92073,756412,541 355,41423,519 1,061 4,309163,920162,605 8,45830,060 5,978 1969—Jan. 29............. 319,249216,806 46,46455,97963,826395,585 332,28418,402 927 6,556145,546160,853 12,00029,966 5,972 Feb. 26............. 317,925218,407 43,38756,131 63,247394,742329,130 18,593 860 4,907 144,065 160,705 12,17930,190 5,967 Mar. 26............. 318,742219,595 42,70956,43863,749396,209327,685 18,950 842 3,374143,989160,53013,63630,342 5,962 Apr. 30............. 322,920223,609 42,37256,93972,398409,340339,06220,260 796 7,981 150,719159,30614,88830,699 5,955 May 28.............. 321,197224,696 40,17756,32468,479403,971 330,43320,054 790 5,405 145,261 158,923 16,46730,752 5,944 Mutual savings banks: 1941—Dec. 31............. 10,379 4,901 3,704 1,774 793 11,804 10,533 .......... I 10,527 1,241 548 1945—Dec. 31............. 16,208 4,279 10,682 1,246 609 17,020 15,385 b 15,371 7 1,592 542 1947—Dec. 31«........... 18,641 4,944 11,978 1,718 886 19,714 17,763 1 3 14 17,745 1,889 533 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—May 29.............. 66,680 52,880 4,370 9,430 880 68,770 62,130 80 62,050 5,110 501 June 29............. 66,855 53,097 4,205 9,553 959 69,029 62,870 1 7 93 62,769 65 5,111 501 July 31.............. 67,280 53,250 4,210 9,820 930 69,430 62,810 80 62,730 5,110 502 Aug. 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............. 68,905 54,803 3,81910,283 996 71,148 64,922 2 7 72 64,841 73 5,269 500 1969—Jan. 29............. 69,460 55,010 3,96010,490 830 71,550 64,950 100 64,850 5,290 499 Feb. 26............. 69,970 55,360 3,99010,620 890 72,130 65,290 100 65,190 5,350 499 Mar. 26............. 70,400 55,570 3,99010,840 900 72,590 65,960 80 65,880 5,360 499 Apr, 30r............ 70,550 55,730 3,90010,920 790 72,610 65,780 80 65,700 5,370 499 May 28”........... 71,100 56,000 3,99011,110 810 73,190 65,920 80 65,840 5,430 499 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 □ JUNE 1969 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (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 Lo i a , n 2 s U S .S e . curities a C ss a e s t h s^ c b T a i a l l o i p i n a t t i i d a e t ­ a s l l Total’ I D n e te ­ rbank 3 Dema O n t d her r B i o n o g w r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l b N a b o u n e f m k r s ­ Govt. Oth 2 er co a u c n ­ ts4 mand Time U.S. Other Time1 Govt. Reserve city member banks: New York City:’ 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 17374 L235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31................. 20,393 7379 11372 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,239 37 1967—Dec. 30................. 52,141 39,059 6327 7355 18,797 74,609 60,407 7,238 741 1,084 31,28220,062 1,880 5,715 12 1968—May 29.................. 50,800 38,737 5,169 6,89414,573 68,783 52,747 6,135 530 749 26,506 18,827 2,586 5,944 12 June 29................. 51,361 39344 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................. 531429 40318 5 375 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 7,52616,347 72,977 54,043 5,971 673 720 27,137 19,542 4,108 6,088 12 Sept. 25................. 54^905 40329 6,191 7,985 16,669 75,060 56,259 6,776 691 2,198 27,13619,458 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 28,20720,159 3,438 6,180 12 Nov. 27................ 55,084 41 429 5',881 7,77418,243 77,069 57,653 7,363 633 170 28,675 20,812 3,914 6,129 12 Dec. 31................. 57^047 42,968 5 384 8',094 19348 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Jan. 29................. 55,692 42,544 5,560 7,588 18,452 78,065 58,225 7,401 501 1,873 29,31419,136 3,278 6,119 12 Feb. 26................. 54*596 42 352 4,495 7,449 17359 76,545 56,323 7,123 469 924 29,34018,467 3,299 6,156 12 Mar. 26................. 53’942 41’875 4374 7,493 18380 76,776 55,046 7,588 442 356 28,74617,914 4,010 6,153 12 55,607 43 337 4,616 7,75422,610 82,395 59,841 8,788 419 2,080 31,513 17,041 4,267 6,240 12 May 28................. 54,847 43,174 4,099 737420^84 80,195 56,188 8,825 414 826 29,577 16,546 4,921 6,217 12 City of Chicago:7*8 1941—Dec. 31................. 2,760 954 1,430 376 1,566 4363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31................. 5,931 1,333 4,213 385 1,489 7359 7^046 1,312 1 552 3,462 719 377 12 1947—Dec. 31................. 5^088 1,801 2,890 397 U739 6,866 6,402 1,217 72 41201 913 426 14 1967—Dec. 30................. 12,744 9 323 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,’250 6,013 383 1,346 10 1968—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 12,848 9348 1 362 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 13 373 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 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................. 14,274 10,286 1 363 2,125 3',008 18,099 14,526 1,535 21 257 6,542 6,171 682 1,433 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 l',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 1 334 2,199 2,768 17,696 12,789 1 ,267 17 92 5,775 5,638 1 ,418 1 ,435 9 Apr. 30................. 14,004 10.218 1 392 2,194 2,835 17,635 13,201 1,170 17 615 5,901 5,498 1 ,319 1 ,460 9 Nfay 28 ................. 13,646 9,996 1,473 2,177 3;067 17,559 12,662 1,190 17 233 5,886 5,336 1,682 1,446 9 Other reserve city:7’8 1941—Dec. 31.................. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31................. 40,108 8,514 29,552 2,04211,286 51,898 49,085 6,418 30 8,221 24,655 9J60 2 2,566 359 1947—Dec. 31................. 36^040 13,449 20:196 2,396 13366 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 17,48726,867 136,626120,485 9,374 310 1,715 53,28855,798 2,555 10,032 163 1968—May 29.................. 106,505 74,697 13,49618,31221,950 132,720 113,758 7,311 321 1,587 46,851 57,688 4,407 10,223 163 June 29................. 107354 76,213 13,083 18,35824^528 136,603 118,123 8,131 300 1,400 50,39457,898 3,72010,351 163 July 31................. 109,510 77,553 13,468 18,48923,601 137,652 118,508 8,065 437 1,881 49,185 58,940 4,267 10,407 162 Aug. 28................. 110,559 77,479 13,972 19,10822,161 136,984117,523 7,759 414 1,612 47,72560,013 4,638 10,433 162 112’559 78 661 14,211 19 68723,382 140,294119,750 8,054 448 2,798 48,12660,324 5,437 10,445 162 Oct. 30................. 114^861 79:584 15,13520,14223,605 142,930 122,205 8,351 395 2,128 49,85461,477 5,55410,559 162 115,027 80 3 82 14391 20,35425 303 145,322 123,321 8,458 353 799 51,83261,879 6,441 10,572 161 Dec. 31................. 119'006 83 334 15,0362033728,136151,957 132,305 10,181 307 1,884 57,44962,484 4,239 10,684 161 1969—Jan 29................. 116 456 82 141 14 16720 148 23 463 144,460 122,369 7,651 306 2,348 50,14261,922 6,179 10,743 161 Feb. 26................. 116^211 83 065 13,151 19’99523,142 143,969 121,555 8,024 272 2,079 49,54961,631 6,085 10,773 161 Mar. 26................. 116,128 83 534 12,738 1935623,094143,928 120,639 7,885 281 1,338 49,751 61 ,384 6,763 10,878 161 Apr. 30 117,795 84332 12357 20,00625 390 148,544 124,498 8,062 249 3,457 51,735 60,995 7,522 10,982 161 May 28................. 116,902 85,316 11,982 1930424,557 146,119 121,240 7,882 248 2,219 50,04360,848 7,819 11,014 161 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 26399 2,408 10332 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31................. 36,324 10 J99 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 38922,82620334146,052131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—May 29.................. 124,525 76,490 24,33823,697 17,924145,493 129,448 1,989 96 1,777 56,40669,180 1,25411,193 5,857 June 29................. 125 ,'767 78,011 23,46924,287 19321 148,588 132,837 2,258 102 1,811 59,18369,483 870 11,403 5,855 July 31................. 126399 78375 23,843 24,081 18,521 148,460132,772 2,145 96 1,744 58,50870,279 77211,302 5,843 Aug. 28................. 127;450 79^84 24,01024,25617356148,626 132,750 2,128 96 1,700 57,68571,141 891 11,354 5,836 Sept. 25................. 129', 187 80,230 24,32524,63218,610151,135 134,961 2,222 96 2,291 58,57871,774 93211,467 5,827 Oct. 30................. 130,842 80842 24,75025,26019,292153,472 137,139 2,305 102 1,803 60,16772,762 1,027 11,536 5,819 Nov. 27.................. 131,846 81 708 24,65825,48020,411 155,573 138,857 2,354 102 1,518 61,90072,983 1,14211,622 5,808 Dec. 31.................. 134359 83,397 24398 2636422364161,122 144,682 2,839 111 1,281 66,57873,873 80411,807 5,796 1969—Jan. 29.................. 133,166 81,932 25,09026,14418,979 155,471 138,314 2,185 102 1,766 60,368 73,893 1,658 11,680 5,790 Feb. 26.................. 133,316 82,660 24,18326,473 19,318 156,543 138,108 2,200 102 1,666 59,35074,790 1,665 11,830 5,785 Mar. 26 134326 83;873 23,76326,890 19,207 157,809 139,211 2,210 102 1,588 59,71775,594 1,445 11,876 5,780 Apr. 30................. 135,514 85 322 23,30726,98521,063 160,766 141,522 2,240 111 1,829 61 ,57075,772 1,780 12,017 5,773 May 28................. 135,802 86,210 22 323 26,96920,071 160,098 140,343 2,157 111 2,127 59,75576,193 2,045 12,075 5,762 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 Total Num­ b c C a a la n ll s k d s a a o t n e f d Total Loans as C s a e s ts h 3 b a i l l i i n a ti d e ­ s TotaP Demand r B in o o g w r s ­ ­ c c a o a p u c n i ­ ta ts l ba b o n e f k r s 1,2 G U o .S vt . . Oth 2 er c c o a u a p n c i ­ t t s a 4 l m D a e n ­ d Time U.S. Other Ti 1 m .5 e Govt. Insured commercial: 1941—Dec. 31.. 49,290 21,239 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,84413,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23.74C 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 9,73413,398 1965—Dec. 31.. 303,593 200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 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.. 365,955243,993 58,18963,772 74,686 454,398 392,801 20,337 1,019 4,951 176,569 189,926 7,91335,269 13,512 1968—Dec. 31.. 399,566264,600 64,02870,938 83,061 498,071 ■■432,71924,427 1,155 5,000198,535203,602 8,675 36,53013,481 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6. ^86 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 2,62717,434 4,815 1967—Dec. 30.. 208,971 139,315 34,30835,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,47819,730 4,758 1968—June 29.. 212,344 143,802 31,62736,915 44,788 265,497 229,028 12,383 561 2,821 102,093 111,170 5,09720,503 4,742 1968—Dec. 31.. 236,130 159,257 35,30041,572 50,953 296,594 257,884 15,117 657 3,090 ’■116,422122,597 5,923 21,524 4,716 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3. '39 621 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 1967—Dec. 30.. 85,128 58,513 12,64913,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—June 29.. 86,231 60,159 11,73414,338 22,342 112,352 94,908 7,261 373 1,306 44,37741,591 2,586 8,636 1,297 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,49840,945 2,535 8,536 1,262 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 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 30,09937,164 230 6,142 7,474 1968—Dec. 31.. 73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 94 691 34,61540,060 217 6,482 7,504 Noninsured nonmem­ ber commercial: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 3:19 1 291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 905 365 4 279 714 1947—Dee. 31«. 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 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 1968—Dec, 31.. 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 Nonmember commercial: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5 504 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14 101 6,045 11 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,64926,495 238 5,345 7,583 1967—Dec. 30.. 67,087 39,409 15,51612,162 8,983 77,732 69,279 1,071 147 603 32,08535,372 408 6,286 7,651 1968—June 29.. 70,219 41,853 15,242 13,124 8,204 80,213 71,304 994 160 844 31,36737,939 447 6,635 7,685 1968—Dec. 31.. 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 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 □ JUNE 1969 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Class of Securities Cash T l o ia t - al Interbank 3 Other Bor- Total N b u e m r ­ b c a a n ll k d a a n te d Total Loans U.S. assets 3 c b a i a li p n ti i d e ta s l Total 3 De­ Demand r in o g w s ­ c c a o a u p c n i ­ ta ts l ba o n f k s Govt. Oth 2 er cou a n c t ­ s ♦ mand Time U.S. Time 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.. 101846 3,081 7,160 606 429 111424 10,363 12 10,351 1 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 I 2 12 12,192 1,252 194 1965—Dec. 31.. 48,735 39,964 3,760 5,010 904 50,500 45,887 1 7 35945,520 91 3,957 329 1967—Dec. 30.. 55’936 451489 3,111 7,336 881 571863 52,910 1 6 42952,474 68 41237 331 1968—June 29.. 58378 46,813 3,039 8,325 833 60,128 54,991 1 6 49254,491 65 4,349 331 1968—Dec. 31.. 60,088 48,286 2,855 8,948 883 62,121 56,859 2 6 48456,367 71 4,481 333 Noninsured mutual savings: 1941—Dec. 31.. 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945—Dec. 31.. 5,361 1,198 3,522 641 180 5,596 5,022 2 5,020 6 '558 350 1947—Dec. 31 s 5,957 1,384 3,813 760 211 6,215 5,556 1 2 5,553 637 339 1965—Dec. 31.. 7,526 5,325 1,710 491 113 7,720 6,874 1 8 6,865 1 706 177 1967—Dec. 30.. 8,295 61100 1,169 1.026 115 81499 7,584 1 20 7,563 1 749 170 1968—June 29.. 8.677 6,283 1,166 1,228 126 8,901 7,879 1 41 7,838 762 170 1968—Dec. 31.. 81817 6,518 964 11335 113 9,027 8,062 1 21 8,041 2 788 167 1 Sec 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, loans to farmers directly guaranteed by million were reclassified as country banks. Beginning Jan. 4, 1968, a CCC were reclassified as securities, and Export-Import Bank portfolio country bank with deposits of $321 million was reclassified as a reserve fund participations were reclassified from Joans 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 p. A-24, United States (including Alaska and Hawaii, beginning with 1959). For 3 Reciprocal balances excluded beginning with 1942. definition of “commercial banks” as used in this table, and for other 4 Includes other assets and liabilities not shown separately. banks that are included under member banks, see Note, p. 643, May 1964 5 Figures for mutual savings banks include relatively small amounts Bulletin. of demand deposits. Beginning with June 1961, they 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, see Aug. 1962 Bulletin, p. 993. For various changes between Figures are partly estimated except on call dates. reserve city and country status in 1960-63, see note 6, p. 587, May 1964 For revisions in series before June 30, 1947, see July 1947 Bulletin, Bulletin. pp. 870-71. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 Loans <t2 Total', 2 Loans L2 O U o .S vt . . Other a 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 1966—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—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 64.6 370.4 241.1 63.9 65.5 367.9 240.4 61.5 66.0 374.6 243.6 64.0 67.0 374.4 244.2 62.5 67.6 Oct. 30.............................................................. 379.4 246.7 64.2 68.5 379.3 245.7 64.8 68.8 Nov. 27.............................................................. 381.6 250.4 61.0 70.2 381.1 248.8 62.8 69.5 Dec 31.............................................................. 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969—Jan. 29............................................................. 385.9 253.7 60.8 71.4 385.0 251.3 63.2 70.5 Feb. 26..................................................... 387.9 258.4 58.1 71.5 384.1 253.7 59.5 70.9 Nfar 26............................................................. 386.8 257.5 57,4 71.9 385.6 255.7 58.5 71.4 Apr 30p............................................................. 389.9 260.6 57.6 71.7 390.7 260.8 57.9 72.0 390.8 263.3 56.0 71.5 388.8 262.2 55.2 71.4 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, Dec. 30, June 29, Dec. 31, Class of bank Dec. 31, Dec. 30, June 29, Dec. 31, 1966 1967 1968 1968 1966 1967 1968 1968 All commercial......1..,.2..2..3............1 ,283 1,235 1,216 All member (cont.)— Insured......1..,.2..2..3............1..,.2.8..3 1,235 1,216 Other reserve city......... 370 362 347 332 National member.........7..2..9 747 744 730 Country.............................. 571 617 598 605 State member..........2..1..2...... 232 201 207 AU nonmember..................... 283 304 290 278 All member.............................. 941 979 945 937 Insured................. 282 304 290 278 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; $94,000 on See June 1966 Bulletin, p. 808. Dec. 30, 1967; $192,000 on June 29, 1968; and $89,000 on Dec. 31 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS □ JUNE 1969 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other Ioans 1 Investments For To U.S. Government Total Fed­ purchasing financial securities 6 Class of loansi eral Com­ o s r e c c a u r r r it y ie in s g institutions Other State bank and and funds mer­ Agri- Real to and Other call date invest­ sold, Total cial cul- es­ in­ Other local secu­ ments etc. 2 3,4 and tur- To tate di­ 5 govt, rities* in­ al 5 bro­ vid- Bills secu­ dus­ kers To Banks Others uals3 and rities trial and others Total certifi­ Notes Bonds deal­ cates ers Total: 2 1947—Dec. 31..116,284 38,037 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1965—Dec. 31..306,060 2,103 199,55571,4378,2125,2583,231 2,158 13,291 49,30045,468 5,21559,547 n.a. n.a. n.a.38,655 6,201 1967—Dec. 30..361,186 4,057 233,18088,4439,2706,215 3,780 1,90212,535 58,525 51,5855,65962,473 n.a. n.a. n.a.50,006 11,471 1968—June 29..368,795 4,813241,001 91,4279,9794,9503,731 1,94412,19361,40954,221 5,97658,603 n.a. n.a. n.a. 52,635 11,742 1968—Dec. 31..402,477 6,747259,72798,3579,7186,6254,108 2,20613,72965,13758,3376,72464,466 n.a. n.a. n.a. 58,570 12,967 All insured: 1941—Dec. 31.. 49,290 21,259 9,2141,450 614 662 40 4,773 4,505 21,046 988 3,15916,899 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 8231,190 114 .......... 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1965—Dec. 31..303,593 2,064 198,045 70,8878,191 5,0883,172 2,093 13,14849,02645,2905,15559,120 13,134 13,23333,85838,4195,945 1967—Dec. 30..358,536 3,919231,58387,8709,2506,0173,719 1,848 12,39458,20951,3955,60662,09413,13418,62431,62349,737 11,204 1968—June 29..365,955 4,655239,33890,8739,9584,7233,668 1,881 12,02961,11254,0205,89358,189 7,00322,49929,95652,355 11,417 1968—Dec. 31..399,566 6,526258,07497,741 9,7006,4094,063 '2,145 13,621 64,80458,1426,65564,028 n.a. n.a. n.a. 58,288 12,650 Member, total 1941—Dec. 31., 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 855 3,1333,378 47 3,455 1,900 1,05778,338 19,26014,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1965—Dec. 31..251,577 1,861 167,93963,9795,0994,9152,714 2,008 12,47538,98836,4184,83244,992 9,441 10,10626,36732,5884,198 1967—Dec. 30.. 294,098 3,438194,38979,3445,7025,8203,099 1,75411,58745,52840,4545,19046,956 9,633 13,65724,61441,5207,795 1968—June 29..298,575 4,041 199,92081,9226,081 4,5253,057 1,77811,25947,69742,291 5,46443,361 4,415 16,29423,621 43,3827,871 1968—Dec. 31..326,023 5,551 215,671 87,8195,921 6,1743,379 2,01212,79750,461 45,4046,18947,881 n.a. n.a. n.a.48,4238,498 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 27217,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 238t1,972 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 1967—Dec. 30,. 52,141 415 38,64423,183 133,874 831 914 2,990 3,431 3,0991,285 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 3,1971,309 5,046 847 1,860 2,555 6,034 736 1968—Dec. 31.. 57,047 747 42,22225,258 173,803 903 1,099 3,426 3,619 3,485 1,694 5,984 n.a. n.a. n.a. 7,233 861 City of Chicago: 1941—Dec. 31.. 2,760 934 732 .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 1967—Dec. 30.. 12,744 266 8,938 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 1968—Dec. 31.. 14,274 312 9,974 6,118 49 535 253 205 1,219 738 848 281 1,863 n.a. n.a. n.a. 1,810 315 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 8,0t6 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 1,3421,053 1965—Dec. 31.. 91,997 471 64,64624,7841,206 9541,108 635 5,820 15,056 14,305 1,99914,354 2,972 3,281 8,43211,5041,022 1967—Dec. 30..106,086 1,219 72,713 30,609 1,311 881 1,143 578 5,44616,969 15,0472,14814,667 3,140 3,557 8,312 15,3762,110 1968—June 29.. 108,001 1,422 75,13831,7201,414 7581,206 513 5,19617,861 15,6252,30413,083 966 4,329 8,105 16,1772,180 1968—Dec. 31.. 119,339 2,197 81,76934,632 1,3621,1161,254 588 6,005 18,939 16,9162,52015,036 n.a. n.a. n.a. 18,111 2,226 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1.128 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 4,54416,722 1,3421,067 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 2,0061,262 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 1967—Dec. 30.. 123,127 1,538 74,07419,8394,332 607 906 100 2,20024,45321,554 1,51624,689 4,168 7,793 13,147 18,3384,488 1968—June 29.. 126,365 1,871 76,73820,3634,610 436 835 77 1,89925,64722,721 1,61423,469 2,188 9,59712,06219,6074,680 1968—Dec. 31.. 135,364 2,295 81,70621,811 4,493 720 969 119 2,14727,16424,1541,69424,998 n.a. n.a. n.a.21,2695,095 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 7,4583,113 343 516 151 817 10,312 9,050 383 14,555 n.a. n.a. n.a. 6,0672,003 1967—Dec. 30.. 67,087 618 38,791 9,0993,568 395 681 148 948 12,997 11,131 46915,516 n.a. n.a. n.a. 8,4863,676 1968—June 29.. 70,219 772 41,081 9,5063,898 425 674 166 935 13,71211,929 51215,242 n.a. n.a. n.a, 9,2523,871 1968—Dec. 31.. 76,454 1,196 44,05610,5383,797 451 729 194 932 14,67612,933 53516,585 n.a. n.a. n.a. 10,1474,469 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (ne., 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 Ioans” and curities.” This increased “Other securities” by about $1 billion. “Loans 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 far Payment af 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

JUNE 1969 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n a ll k s d s a a o n te d f s B w F e R a r . i n v e R th e k ­ . s s r C c e a o n n u i c d n r­ y b m a a w B d n e n c o i a s k t e h ­ l t s ­ s ic ? ju p m s D o d a a t d e s e e n i ­ - d ­ t d s • m D e In s o t t ­ i e c r 7 ba e F n ig k o n r­ 9 G U o .S vt . . g S lo a o t c n a v a d t t e . l c C h c o a f e e i e n f e r c f r d d s i t k ­ i ’ s ­ , IPC I b n a t n e k r­ G P S U a o o a n . s S v v d t ­ t . a , l g S lo a o t c n a v a d t t e l . IPC3 r B i o n o g w r s - ­ c C o a t a u a c p n l ­ i t ­ s ings etc. Total: I 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1.43C 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1965—Dec. 31.... 17.992 4,851 15,300 140,936 16,794 1,632 5,525 14,244 5,978 140,558 1,008 263 12,186 134,2474,47230,272 1967—Dec. 30.... 20,275 5,931 17,490 153,253 19,853 2,029 5,234 15,564 8,677 159,825 1,316 267 15,892 167,6345,77734,384 1968—June 29.... 20,846 5,190 15,494147,296 18,632 2,005 4,971 16,284 10,123 151,430 1,094 321 16,522173,857 8,13035,774 1968—Dec. 31.... 21,230 7,195 18,910 167,145 22,501 2,245 5,010 16,876 9,684 173,341 1,211 368 19,110184,8928,89937,006 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1965—Dec. 31.... 17,992 4,833 14,801 139,601 16,620 1,529 5,508 14,152 5,913 139,594 923 263 12,135 133,6864,32529,827 1967—Dec. 30.... 20,275 5,916 16,997151,948 19,688 1,909 5,219 15,471 8,608 158,905 1,258 26715,836166,9565,531 33,916 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 t6,456173,1487,91335,269 1968—Dec. 31.... 21,230 7,165 18,343 165,527 22,310 2,117 5,000 16,774 9,442 172,319 1,155 36819,057 184,1788,67536,530 Member, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1965—Dec. 31.... 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 23610,041 109,9254,23424,926 1967—Dec. 30.... 20,275 4,646 10,550121,530 18,951 1,861 4,631 11,857 7,940 132,184 1,169 235 12,856 135,3295,37028,098 1968—June 29.... 20,846 3,999 9,218116,269 17,809 1,834 4,127 12,503 9,251 124,716 934 28613,373139,1027,68429,139 1968—Dec. 31.... 21,230 5,634 11,279 131,491 21,483 2,036 4,309 12,851 8,592 142,476 1,061 33015,668 147,545 8,458 30,060 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 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 1968—Dec. 31.... 4,506 443 420 20,808 7,532 1,433 888 1,068 4,827 27,455 622 73 1,623 18,3802,733 6,137 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 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 1968—Dec. 31.... 1,164 98 281 5,183 1,445 89 257 245 207 6,090 21 2 624 5,545 682 1,433 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 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 50,2502,555 10,033 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 1968—Dec. 31.... 8,847 1,800 2,986 43,674 9,725 456 1,884 3,835 1,947 51,667 307 168 7,378 55,271 4,23910,684 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 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 60,830 552 11,005 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 1968—Dec. 31.... 6,714 3,293 7,592 61,827 2,781 58 1 .281 7,703 1 ,612 57,263 111 86 6,043 68,348 80411,807 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 1967—Dec. 30.... 1,285 6,939 31,723 903 169 603 3,707 737 27,641 147 32 3,035 32,305 408 6,286 1968—June 29.... 1,191 6,275 31,027 823 170 844 3,781 872 26,715 160 35 3,149 34,755 447 6,635 1968—Dec. 31.... 1,560 7,631 35,654 1,018 209 701 4,025 1,092 30,865 150 38 3,442 37,347 441 6,945 7 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see Note, p. 589, May 1964 > Through 1960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection: beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and 9 For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 1965, have been adjusted to make them comparable with State bank data. Note.—Data are for all commercial banks in the United States. (For For other notes see opposite page. definition of “commercial banks” as used in this table and for other banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ JUNE 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 ationments1 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 May 1 209,465 148,546 67,625 1,951 801 3,694 116 2,327 1 ,360 3,708 6,082 4,458 29,675 16,733 1,050 12,180 3,214 8 208,802 147,705 67,299 1,956 849 3,563 96 2,347 1,390 3,949 5,377 4,375 29,718 16,776 1,063 12,161 3,214 15 210,179 148,427 67,478 1,952 702 3,641 96 2,345 1,362 4,191 5,646 4,360 29,853 16,838 1,060 12,116 3,213 22 209.293 148,102 67,285 1,952 563 3,702 99 2,346 1,374 4,408 5,189 4,434 29,906 16,878 1,069 12,107 3,210 29 208,973 147,803 66,902 1,956 645 3,637 97 2,357 1,463 4,170 5,158 4,458 29,982 16,970 1,089 12,129 3,210 1969 Apr. 2 229,085 165,019 75,269 1,969 737 3,395 106 2,787 1,688 5,379 5,506 5,203 32,627 18,832 1,059 13,992 3,530 9 228,443 164,393 75,337 1,971 902 3,330 107 2,782 1,678 4,687 5,477 5,103 32,651 18,911 1,096 13,883 3,522 16 232,038 168,053 76,568 1,999 1,719 3,795 106 2,778 1,695 5,170 6,129 5,170 32,721 18,959 1,037 14,152 3,523 23 228,639 165,631 76,462 1 ,996 823 3,508 104 2,788 1,690 4,013 5,671 5,139 32,808 19,030 1,045 14,076 3,522 30 229,828 166,659 76,659 2,005 766 3,598 106 2,763 1,617 4,262 6,131 5,218 32,877 19,121 953 14,107 3,524 May 7. 229,602 167,065 76,579 2.017 954 3,601 106 2,745 1,737 4,575 6,023 5,175 32,839 19,142 976 14,120 3,524 14. 231,141 169,119 76,768 1,981 1,823 3,858 104 2,750 1,844 5,263 5,781 5,t49 32,946 19,218 1,011 14,147 3,524 21. 228,717 167,659 76,668 2,004 472 3,436 107 2,760 1,784 5,809 5,680 5,110 33,010 19,253 984 14,106 3,524 28 » 227,545 166,787 76,636 2,027 475 3,576 110 2,766 1,695 4,809 5,617 5,194 33,022 19,334 976 14,075 3,525 New York City 1968 May 1 47,785 36,669 22,582 20 243 2,149 25 708 681 1,078 1,907 1,159 2,983 1,269 724 2,084 943 8 47,227 36,384 22,366 20 402 2,044 11 720 709 1,395 1,435 1,107 2,994 1,284 728 2,112 943 15 47,646 36,629 22,388 20 319 2,179 11 724 696 1,308 1,702 1,124 3,016 1,286 729 2,069 942 22 47,510 36,584 22,356 19 330 1,272 13 730 706 1,466 1,394 1,162 3,023 1,283 725 2,047 942 29 47,774 36,737 22,319 19 353 2,233 13 741 754 1,534 1,398 1,179 3,052 1,284 737 2,063 942 1969 Apr. 2 52,299 40,757 24,501 15 539 1,972 12 840 835 1,988 1,704 1,365 3,290 1,468 691 2,585 1,048 9 51,643 39,811 24,447 15 725 1,917 10 837 778 1,097 1,694 1,319 3,295 1,468 692 2,565 1,048 16 53,306 41,388 24,741 15 1,159 2,319 10 838 802 1,087 2,085 1,336 3,305 1,477 693 2,569 1,048 23 51,887 40,519 24,693 14 521 2,110 10 844 821 1,374 1,785 1,340 3,347 1,480 695 2,533 1 ,048 30 52,468 41,084 24,736 15 549 2,214 10 845 857 1,434 2,036 1,362 3,377 1,484 664 2,550 1 ,049 May 7. 51,989 40,869 24,751 14 670 2,131 11 840 894 1,169 1,954 1,352 3,373 1,484 672 2,603 1,049 14. 52,980 41,798 24,965 13 1,038 2,517 11 846 974 1,013 1,920 1,339 3,399 1,497 713 2,602 1,049 21. 52,138 41,344 24,897 14 321 2,124 12 851 909 1,894 1,779 1,326 3,410 1,504 689 2,663 1,049 28 » 51,645 40,933 24,852 14 331 2,252 13 857 878 1,503 1,747 1,322 3,425 1,517 670 2,601 1,049 Outside New York City 1968 May 161,680111,877 45,043 1,931 558 1,545 91 1,619 679 2,630 4,175 3,299 26,692 15,464 326 10,096 2,271 8 161,575 111,321 44,933 1,936 447 1,519 85 1,627 681 2,554 3,942 3,268 26,724 15,492 335 10,049 2,271 15 162,533 111,798 45,090 1,932 383 1,462 85 1,621 666 2,883 3,944 3,236 26,837 15,552 331 10,047 2,271 22 161,783 111,518 44,929 1,933 233 1,430 86 1,616 668 2,942 3,795 3,272 26,883 15,595 344 10,060 2,268 29 161,199111,066 44,583 1,937 292 1,404 84 1,616 709 2,636 3,760 3,279 26,930 15,686 352 10,066 2,268 1969 Apr. 2 176,786 124,262 50,768 1,954 198 1,423 94 1,947 853 3,391 3,802 3,838 29,337 17,364 368 11,407 2,482 9 176,800 124,582 50,890 1,956 177 1,413 97 1,945 900 3,590 3,783 3,784 29,356 17,443 404 11,318 2,474 16 178,732 126,665 51,827 1,984 560 1,476 96 1,940 893 3,661 4,044 3,834 29,416 17,482 344 11,583 2,475 23 176,752125.112 51,769 1,982 302 1,398 94 1,944 869 2,639 3,886 3,799 29,461 17,550 350 11,543 2,474 30 177,360125,575 51,923 1,990 217 1,384 96 1,918 760 2,828 4,095 3,856 29,500 17,637 289 11,557 2,475 May 177,613 126,196 51,828 2,003 284 1,470 95 1 ,905 843 3,406 4,069 3,823 29,466 17,658 304 11,517 2,475 14. 178,161 127,321 51,803 1,968 785 1,341 93 1,904 870 4,250 3,861 3,810 29,547 17,721 298 11,545 2,475 21. 176,579 126,315 51,771 1,990 151 1,312 95 1,909 875 3,915 3,901 3,784 29,600 17,749 295 11,443 2,475 28» 175,900125,854 51,784 2,013 144 1,324 97 1,909 817 3,306 3,870 3,872 29,597 17,817 306 11,474 2,476 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 Other bonds, of States corporate Cash All Notes and bonds and 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 I to After Tax All of Other banks banks in 5 yrs. 5 yrs. war­ other partici­ secu­ 1 yr. rants 3 pation4 rities Large banks Total 1968 26,005 2,795 3,935 13,984 5,291 4,411 26,334 i ,342 2,827 48,772 24,331 4,364 212 2,682 17,183 9,799 ..........May 1 26,293 2,878 4,195 13,773 5,447 4,178 26,528 1,312 2,786 43,942 22,057 3,936 219 2,667 15,063 9,712 8 27,294 2,980 4,034 14,257 6,023 3,925 26,473 1,320 2,740 49,109 25,775 4,360 215 2,722 16,037 9,574 15 26,746 2,687 4,301 13,693 6,065 3,953 26,493 1,312 2,687 44,893 22,588 3,963 214 2,792 15,336 9,500 22 26,476 2,552 4,406 13,493 6,025 4,067 26,612 1,311 2,704 45,278 22,733 4,068 208 2,705 15,564 9,526 29 1969 26,073 3,521 5,210 11,915 5,427 4,714 28,947 1 ,349 2,983 52,742 28,530 4,534 248 2,767 16,663 11,012 ..........Apr. 2 25,528 3,031 5,379 11,723 5,395 5,184 29,106 1,315 2,917 51,273 27,152 4,403 258 2,909 16,551 10,887 9 25,588 3,064 5,457 11,681 5,386 5,162 29,052 1,318 2,865 55,578 30,823 4,798 287 2,908 16,762 10,744 16 24,838 2,322 5,410 11,687 5,419 5,028 28,938 1,331 2,873 53,224 28,874 4,684 272 3,001 16,393 10,828 23 24,791 2,291 5,434 11,634 5,432 5,074 28,995 1,359 2,950 58,068 32,130 4,356 246 2,904 18,43211,191 30 24,233 1,858 5,419 11,507 5,449 4,867 29,215 1 ,329 2,893 52,560 28,866 4,268 314 2,755 16,357 11,209 ..........May 7 23,973 1,754 5,447 11,366 5,406 4,819 29,016 1 ,328 2,886 54,408 31,004 4,778 308 2,958 15,360 11,292 14 23,305 1,411 4,534 11,974 5,386 4,704 28,882 1,315 2,852 54,238 29,003 4,594 304 2,972 17,365 11,220 21 23,077 1,274 4,423 12,138 5,242 4,614 28,857 1,329 2,881 54,623 29,863 4,633 318 3,03416,775 11,611 ..................P28 New York City 1968 4,392 638 541 2,031 1,182 1,558 4,397 63 706 15,093 9,828 303 103 352 4,507 3,500 ..........May 1 4,521 590 735 1,881 1,315 1,147 4,418 60 697 13,551 9,338 240 110 354 3,509 3,447 8 4,838 768 746 1,873 1,451 1 ,056 4,405 59 659 15,297 10,529 329 105 348 3,986 3,376 15 4,700 653 803 1,749 1,495 1 ,116 4,433 56 621 13,993 9,642 269 107 345 3,630 3,346 22 4,704 700 778 1,734 1,492 1,210 4,449 59 615 14,267 9,714 265 102 327 3,859 3,280 29 1969 4,620 999 694 1 ,798 1,129 1.442 4,590 98 792 18,290 13,202 345 123 359 4,261 4,065 ..........Apr. 2 4,579 1 ,009 699 1,777 1,094 1,671 4,693 101 788 17,340 12,188 308 138 370 4,336 3,989 9 4,703 1,102 732 1,778 1,091 1,666 4,671 107 771 18,626 13,558 381 150 366 4,171 3,856 16 4,334 720 725 1,777 1,112 1,581 4,581 102 770 18,588 14,117 315 133 361 3,662 3,910 23 4,309 695 721 1,764 1,129 1,583 4,602 118 772 22,156 16,269 389 108 359 5,031 4,028 30 4,153 496 740 1,756 1,161 1,376 4,689 125 777 19,050 13,983 363 168 353 4,183 4,183 ..........May 7 4,133 481 733 1,758 1,161 1,440 4,659 128 822 19,523 14,670 433 159 363 3,898 4,265 14 3,852 251 531 2,064 1,006 1,385 4,627 120 810 18,993 14,001 405 162 375 4,050 4,304 21 3,802 203 521 2,059 1,019 1,335 4,649 113 813 20,398 15,067 405 162 394 4,370 4,414 ..................»28 Outside New York City 1968 21,613 2,157 3,394 11,953 4,109 2,853 21,937 1,279 2,121 33,679 14,503 4,061 109 2,33012,676 6,299 ..........May 1 21,772 2,288 3,460 11,892 4,132 3,031 22,110 1,252 2,089 30,391 12,719 3,696 109 2,313 11,554 6,265 8 22,456 2,212 3,288 12,384 4,572 2,869 22,068 1 ,261 2,081 33,812 15,246 4,031 110 2,37412,051 6,198 15 22,046 2,034 3,498 11,944 4,570 2,837 22,060 1,256 2,066 30,900 12,946 3,694 107 2,447 11,706 6,154 .22 21,772 1,852 3,628 11,759 4,533 2,857 22,163 1,252 2,089 31,011 13,019 3,803 106 2,378 11,705 6,246 29 1969 21,453 2,522 4,516 10,117 4,298 3,272 24,357 1,251 2,191 34,452 15,328 4,189 125 2,408 12,402 6,947 ..........Apr. 2 20,949 2,022 4,680 9,946 4,301 3,513 24,413 1 ,214 2,129 33,933 14,964 4,095 120 2,539 12,215 6,898 9 20,885 1,962 4,725 9,903 4,295 3,496 24,381 1,211 2,094 36,952 17,265 4,417 137 2,54212,591 6,888 .16 20,504 1,602 4,685 9,910 4,307 3,447 24,357 1,229 2,103 34,636 14,757 4,369 139 2,64012,731 6,918 .23 20,482 1,596 4,713 9,870 4,303 3,491 24,393 1,241 2,178 35,912 15,861 3,967 138 2,545 13,401 7,163 • • *........... .30 20,080 1,362 4,679 9,751 4,288 3,491 24,526 1,204 2,116 33,510 14,883 3,905 146 2,40212,174 7,026 ..........May 7 19,840 1,273 4,714 9,608 4,245 3,379 24,357 1,200 2,064 34,885 16,334 4,345 149 2,595 11,462 7,027 .14 19,453 1,160 4,003 9,910 4,380 3,319 24,255 1,195 2,042 35,245 15,002 4,189 142 2,597 13,315 6,916 .21 19,275 1,071 3,902 10,079 4,223 3,279 24,208 1,216 2,068 34,225 14,796 4,228 156 2,640 12,405 7,197 ..................^28 For notes see p. A-29. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS o JUNE 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 Total’ 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 May 1................... 225,397 121,317 86,147 7,121 5,208 13,394 755 1,731 104,080 48,386 39,113 10,402 735 4,952 264 8.................... 218,660114,332 81,574 5,996 4,060 13,788 719 1,674104,328 48,424 39,246 10,555 736 4,880 257 15................... 223,759 119,663 85,750 6,280 4,184 14,088 794 1,641 104,096 48,421 39,148 10,437 725 4,881 255 22................... 219,029 114,881 82,487 5,844 4,209 13,340 759 1,692104,148 48,466 39,277 10,416 713 4,794 253 29................... 219,278 115,107 83,859 5,946 3,107 13,135 771 1,732 104,171 48,470 39,295 10,471 695 4,777 238 1969 Apr. 2.................... 237,070 128,683 93,164 6,257 2,003 t6,259 691 1,927 108,387 48,650 43,419 10,718 531 4,578 231 9................... 233,618125,533 91,791 5,878 1,286 15,813 670 1,893 108,085 48,337 43,402 10,797 525 4,529 235 16................... 240,947 133,629 95,902 6,031 4,581 16,044 748 1,911 107,3(9 47,913 42,966 10,961 494 4,508 219 23.................... 235,829128,551 91,523 5,747 4,670 15,307 717 1,890107,278 47,809 42,958 11,019 492 4,512 230 30................... 241,714134,765 92,700 7,005 6,946 16,315 789 2,036 106,949 47,737 42,908 10,812 494 4,513 226 May 7.................... 235,429 128,592 87,394 6,409 7,670 16,030 661 1,932106,837 47,726 42,845 10,764 491 4,523 226 14................... 238,876132,278 91,324 6,279 7,261 16,064 796 1,978 106,598 47,679 42,830 10,650 496 4,458 228 21................... 233,470127,091 88,751 6,023 6,253 15,496 668 1,901 106,379 47,713 42,619 10,551 488 4,528 224 28*................. 233,442127,254 89,414 6,270 4,112 16,239 693 1,918 106,188 47,691 42,511 10,518 492 4,503 222 New York City 1968 May 1................... 51,630 33,848 21,170 1,070 1,023 4,196 591 1,221 17,782 4,647 8,418 874 448 3,168 136 8................... 49,062 31,247 19,340 447 797 4,593 551 1,158 17,815 4,646 8,477 901 441 3,127 130 15................... 50,551 32,826 20,351 469 1 ,011 4,500 609 1,128 17,725 4,636 8,403 890 434 3,141 129 22.................... 49,481 31,835 19,746 430 940 4,433 567 1,193 17,646 4,637 8,397 885 427 3,079 130 29................... 49,915 32,314 20,415 461 726 4,493 614 1,209 17,601 4,623 8,347 955 415 3,059 115 1969 Apr. 2................... 54,033 37,449 23,192 594 410 5,811 537 1,359 16,584 4,667 7,686 852 294 2,880 135 9................... 51,684 35,314 21,853 684 88 5,388 523 1,339 16,370 4,637 7,575 835 292 2,820 143 16................... 54,008 38,015 22,668 436 1 ,689 5,706 594 1,342 15,993 4,588 7,350 790 277 2,787 135 23................... 53,058 37,149 21,764 418 1,004 5,797 570 1,325 15,909 4,582 7,274 778 278 2,788 143 30................... 56,933 41,188 22,967 758 2,041 6,879 628 1 ,473 15,745 4,576 7,233 655 275 2,794 144 May 7.................... 53,209 37,573 20,861 598 2,104 6,135 519 1,359 15,636 4,578 7,107 669 272 2,799 143 14................... 54,192 38,692 22,011 462 1,950 6,089 632 1 ,430 15,500 4,569 7,039 666 268 2,750 144 21.................... 52,264 36,861 21,401 472 1,438 6,070 525 1,354 15,403 4,571 6,867 679 266 2,815 142 28P................. 53,236 37,987 21,615 520 798 6,993 552 1,361 15,249 4,567 6,733 678 272 2,798 142 Outside New York City 1968 May 1.................... 173,767 87,469 64,977 6,051 4,185 9,198 164 510 86,298 43,739 30,695 9,528 287 1,784 128 8................... 169,598 83,085 62,234 5,549 3,263 9,195 168 516 86,513 43,778 30,769 9,654 295 1,753 127 15................... 173,208 86,837 65,399 5,811 3,173 9,588 185 513 86,371 43,785 30,745 9,547 291 1,740 126 22................... 169,548 83,046 62,741 5,414 3,269 8,907 192 499 86,502 43,829 30,880 9,531 286 1,715 123 29................... 169,363 82,793 63,444 5,485 2,381 8,642 157 523 86,570 43,847 30,948 9,516 280 1,718 123 1969 Apr. 2................... 183,037 91,234 69,972 5,663 1 ,593 10,448 154 568 91,803 43,983 35,733 9,866 237 1,698 96 9................... 181,934 90,219 69,938 5,194 1,198 10,425 147 554 91,715 43,700 35,827 9,962 233 1,709 92 16.................... 186,939 95,614 73,234 5,595 2,892 10,338 154 569 91,326 43,325 35,616 10,171 217 1,721 84 23................... 182,771 91,402 69,759 5,329 3,666 9,510 147 565 91,369 43,227 35,684 10,241 214 1,724 87 30................... 184,781 93,577 69,733 6,247 4,905 9,436 161 563 91,204 43,161 35,675 10,157 219 1,719 82 May 7.................... 182,220 91,019 66,333 5,811 5,566 9,895 142 573 91,201 43,148 35,738 10,095 219 1,724 83 14................... 184,684 93,586 69,313 5,817 5,311 9,975 164 548 91,098 43,110 35,791 9,984 228 1,708 84 21........... 181,206 90,230 67,350 5,551 4,815 9,426 143 547 90,976 43,142 35,752 9,872 222 1,713 82 28”................. 180,206 89,267 67,799 5,750 3,314 9,246 141 557 90,939 43,124 35,778 9,840 220 1,705 80 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 1 ° ties of Wednesday ties counts and Total (net) Demand U.S. From From capital loans ad­ deposits banks F.R. others accounts (net) justed ad­ to Banks ad­ and in­ justed 9 Total Issued Issued their justed 8 vest­ issued to to foreign ments ’ IPC’s others branches11 Large banks— Total 1968 539 7,655 13,507 20,938 268,036 144,838 205,757 78,384 19.694 12,303 7,391 4,784 ................May I 143 8,547 14,162 20,944 262,456 143,756 204,853 74,427 19,734 12,321 7,413 5,235 ....................... 8 724 8,873 14,477 21,029 268,862 144,236 205,988 75,616 19,513 12,158 7,355 5,426 ........................15 206 8,577 14,857 21,017 263,686 143,694 204,885 74,744 19,526 12,155 7,371 5,968 .......................22 335 8,270 14,839 21,055 263,777 143,633 204,803 76,132 19,528 12,113 7,415 5,888 .......................29 1969 833 12,648 19,973 22,315 292,839 159,640 223,706 81,891 18,626 11,451 7,175 9,199 ..............Apr. 2 518 13,796 20,342 22,329 290,603 159,706 223,756 81,282 ’■18,498 '11,351 7,147 9,534 ....................... 9 789 13,754 20,607 22,262 298,360 163,305 227,290 82,181 H7.999 ’■10,979 7,020 9,749 ........................16 1,001 11,996 21,601 22,264 292,691 161,618 224,626 79,700 ’■17,999 ’•11,009 6,990 10,319 .......................23 2,175 11,749 20,970 22,479 299,087 162,397 225,566 79,374 17,622 10,821 6,801 ' 9,450 .......................30 648 13,612 21,158 22,524 293,371 162,490 225,027 76,026 17,495 10,746 6,749 r 9,935 ..............May 7 343 14,570 20,547 22,505 296,841 163,856 225,878 77,949 17,408 10,741 6,667 ' 9,484 ........................14 804 15,514 21,923 22,464 294,175 161 ,850 222,908 76,339 17,138 10,519 6,619 rl 0,069 .......................21 1,279 14,158 22,417 22,483 293,779 161,978 222,736 77,040 16,973 10,391 6,582 9,780 ......................’28 New York City 1968 2,597 6,551 5,600 66,378 35,591 46,707 18,801 6,063 4,008 2,055 3,506 2,492 7,073 5,598 64,225 34,989 45,832 16,519 6,066 4,030 2,036 3,754 ....................... 8 172 2,745 7,114 5,737 66,319 35,321 46,338 16,786 5,979 3,965 2,014 3,876 ........................15 2,158 7,490 5,720 64,849 35,118 46,044 16,820 5,945 3,959 1,986 4,475 .......................22 75 2,233 7,385 5,713 65,321 35,203 46,240 17,381 5,873 3,861 2,012 4,361 .......................29 1969 3,343 11 344 5,934 74,654 38,769 50,311 18,026 4,381 2,626 1,755 6,825 85 3,987 11,288 5,928 72,972 38,714 50,546 17,650 4,288 2,563 1,725 6,803 ....................... 9 190 4,325 11,360 5,905 75,788 40,301 52,219 17,062 4,053 2,400 1,653 6,856 ........................16 110 3,423 11,899 5,895 74,385 39,145 50,513 16,231 4,020 2,383 1,637 7,212 .......................23 298 3,524 11,923 5,974 78,652 39,650 51,034 15,999 3,820 2,312 1,508 r7,007 .......................30 4,243 11,782 5,988 75,222 39,700 50,820 15,351 3,769 2,260 1,509 '7,049 4,837 11,755 5,984 76,768 40,785 51,967 15,983 3,742 2,249 1,493 '6,817 ........................14 33 4,697 12,479 5,962 75,435 39,450 50,244 15,352 3,602 1,485 1,458 '7,305 .......................21 365 4,191 12,713 5,952 76,457 39,430 50,142 15,129 3,497 2,036 1,461 '7,096 ......................’28 Outside New York City 1968 539 5,058 6,956 15,338 201,658 109,247 159,050 59,583 13,631 8,295 5,336 1,278 ..............May 1 143 6,055 7,089 15,346 198,231 108,767 159,021 57,908 13,668 8,291 5,377 1,481 .........................8 552 6,128 7,363 15,292 202,543 108,915 159,650 58,830 13,534 8,193 5,341 1,550 .............15 206 6,419 7,367 15,297 198,837 108,576 158,841 57,924 13,581 8,196 5,385 1,493 .......................22 260 6,037 7,454 15,342 198,456 108,430 158,563 58,751 13,655 8,252 5,403 1,527 .......................29 1969 833 9,305 8,629 16,381 218,185 120,871 173,395 63,865 14,245 8,825 5,420 2,374 ..............Apr. 2 433 9,809 9,054 16,401 217,631 120,992 173,210 63,632 ''14,210 ^8,788 5,422 2,731 ....................... 9 599 9,429 9,247 16,357 222,572 123,004 175,071 65,119 ■■13,946 ’■8,579 5,367 2,893 ........................16 891 8,573 9,702 16,369 218,306 122,473 174,113 63,469 >•13,979 '8,626 5,353 3,107 .......................23 1,877 8,225 9,047 16,505 220,435 122,747 174,532 63,375 13,802 8,509 5,293 '2,443 ........................30 648 9,369 9,376 16,536 218 149 122,790 174,207 60,675 13,726 8,486 5,240 2,886 ..............May 7 343 9,733 8,792 16,521 220,073 123,071 173,911 61,966 13,666 8,492 5,174 ••2,667 ........................14 771 10,817 9,444 16,502 218,740 122,400 172,664 60,987 13,536 8,402 5,134 '2,764 21 914 9,967 9,704 16,531 217,322 122,548 172,594 61,911 13,476 8,355 5,121 '2,684 ......................P28 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. < 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. 6 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 “All other 9 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, io 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 □ JUNE 1969 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1969 1969 1969 1968 1968 May May May May Apr. 2nd 1st 28 21 14 7 30 May Apr. Mar. I IV III half half Durable goods manufacturing: Primary metals............................. 1,997 1,983 1,974 1,982 1 ,979 18 1 39 87 -224 168 -56 571 Machinery........................................ 5,091 5,164 5,241 5,176 5,170 -79 107 368 454 11 22 33 286 Transportation equipment.............. 2,019 2,044 2,053 2,062 2,033 -14 -44 -2 157 109 -45 64 44 Other fabricated metal products . .. 2,139 2,129 2,147 2,140 2,132 7 140 130 142 -67 11 -56 210 Other durable goods....................... 2,350 2,349 2,342 2,282 2,275 75 54 41 38 -67 40 -27 214 Nondurable goods manufacturing: Food, liquor, and tobacco.......... 2,383 2,468 2,442 2,371 2,361 22 -9 -56 -607 570 170 740 -521 Textiles, apparel, and leather......... 2,603 2,601 2,592 2,576 2,549 54 121 120 24t -217 128 -89 527 Petroleum relining........................... 2,018 1,994 1 ,998 2,012 2,016 2 98 15 315 32 85 117 -68 Chemicals and rubber..................... 2,725 2,692 2,637 2,595 2,572 153 96 132 -7 204 -233 -29 171 Other nondurable goods................. 1,831 1,841 1,851 1,792 1,791 40 17 94 4 -82 52 -30 72 Mining, including crude petroleum and natural gas............................ 4,907 4,923 4,950 4,951 5,001 -94 ’•54 -65 236 116 -147 -31 558 Trade: Commodity dealers................. 1,073 1,073 1,073 1,149 1,170 -97 -140 -67 -16 302 -84 218 -497 Other wholesale....................... 3,542 3,587 3,579 3,606 3,615 -73 77 106 167 160 54 214 100 Retail....................................... 4,164 4,175 4,227 4,257 4,300 -136 443 35 -179 566 -260 306 204 Transportation.................................... 5,330 5,243 5,277 5,247 5,262 68 -62 82 144 272 -59 213 560 Communication................................... 1,122 1,130 1,142 1,152 1,154 -32 79 -87 -104 191 -113 78 102 Other public utilities........................... 2,588 2,627 2,595 2,663 2,636 -48 r —39 -46 -196 311 351 662 -207 Construction........................................ 3,259 3,222 3,177 3,145 3,134 125 11 79 205 79 65 144 263 Services................................................ 6,760 6,694 6,698 6,692 6,712 48 ■■191 145 545 432 1 433 547 All other domestic loans............. 8,724 8,702 8,634 8,623 8,665 59 "340 165 432 472 9 481 559 Bankers’ acceptances........................... 458 480 552 554 609 -151 "36 -7 -155 -30 -53 -83 -392 Foreign commercial and industrial loans.............................................. 2,459 2,435 2,499 2,474 2,496 -37 -55 5 -43 58 -55 3 -149 Total classified loans........................... 69,542 69,556 69,680 69,501 69,632 -90 rl ,516 1,226 1,860 3,198 107 3,305 3,154 Total commercial and industrial loans. 76,636 76,668 76,768 76,579 76,659 -23 1,612 1 ,334 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 (May ^ Mar. Feb. Jan. Dec. Nov. Oct. Sept. 2nd 28 26 26 29 25 27 30 25 I IV III II half Durable goods manufactur­ ing: Primary metals................... 1,390 1,358 1,388 1,356 1,354 1,338 1,414 1,417 1,466 50 -128 127 227 -1 Machinery......................... 2,432 2,488 2.429 2,238 2,323 2,261 2,245 2,212 2,338 168 -77 59 125 -18 Transportation equipment. 1,086 1,110 1,163 1,127 1,095 1,035 969 909 931 128 104 23 19 127 Other fabricated metal products......................... 789 776 714 709 694 738 714 748 801 -24 -63 42 67 -21 Other durable goods......... 1 ,039 1,014 1,048 1,051 1,026 1,032 994 991 999 16 33 -29 34 4 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 813 767 708 681 703 775 779 755 849 -67 -74 28 -55 -46 Textiles, apparel, and leather......................... 619 618 622 633 621 629 602 601 588 -7 41 22 ii 63 Petroleum refining............. 1,632 1,633 1,528 1,536 1,504 1,212 1,217 1,167 1,228 316 -16 2 62 -14 Chemicals and rubber....... 1,672 1,587 1 ,600 J, 565 1,583 1,638 1,544 1,544 1,538 -88 150 -81 6 69 Other nondurable goods.. 1,036 1,012 1,025 1 ,025 I ,059 1,061 1,072 1 ,083 1,087 -36 -26 36 -10 10 Mining, including crude pe­ troleum and natural gas. 4,230 4,302 4,270 4,355 4,442 4,033 3,828 3,829 3,963 237 70 -158 74 -88 Trade: Commodity dealers.. 111 112 110 112 114 118 114 114 112 -8 6 -1 -2 5 Other wholesale........ 659 653 674 628 653 643 613 616 585 31 58 -49 49 9 Retail......................... 1,154 1,163 1,154 1,147 1,124 1,135 1,159 1,144 1,114 19 21 -30 46 -9 Transportation...................... 4,014 3,988 4,032 3,972 4,025 3,906 3,744 3,680 3,673 126 233 -30 200 203 Communication.................... 409 440 437 429 438 441 459 449 472 -4 -31 26 34 -5 Other public utilities............. 1,135 1,109 1,230 1,228 1 ,245 1 ,224 1,181 1,077 1,071 6 153 256 105 409 Construction......................... 886 847 874 875 863 808 799 782 794 66 14 25 63 39 Services.................................. 2,885 2,891 2,869 2,816 2,675 2,576 2,517 2,386 2,361 293 215 58 74 273 All other domestic Ioans.... 1 ,023 1,025 1,019 1,885 987 959 957 940 921 60 38 16 26 54 Foreign commercial and in­ dustrial loans......... 1,869 1,853 1,824 1,015 1,901 1,919 1,914 1,876 1,881 -95 38 -53 -42 -15 Total loans............................. 30,883 30,746 30,718 30,386 30,429 29,531 28,835 28,320 28,772 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 loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article “Revised Scries 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

JUNE 1969 □ INTEREST RATES A 31 BANK RATES ON SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) 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 11.0 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 11.1 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 5>/i-5« 1968—Nov. 13 614 Business Loans was revised. For description of revised series see pp. 721­ Mar. 27 514 Dec. 2 614 27 of the May 1967 Bulletin. Nov. 20 6 Dec. 18 614 Bank prime rate was 6 per cent during the period Jan. 1, 1967-Jan. 1968—Apr. 19 6'4 1969—Jan. 7 7 25, 1967. Changes thereafter to new levels (in per cent) occurred on the Sept. 25 6-6% Mar. 17 714 following dates: June 9 814 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) * Prime CO. Prime Period coml. paper bankers' Federal 3-month bills 3 6-month bills 5 9- to 12-month issues paper, placed accept­ funds 3. to 5- 4- to 6- directly, ances, rate 3 year months 1 m 3 o - n to th s 6 - 2 90 days 1 n R e a w t e is s o u n e M y a ie r l k d et n R ew at e is s o u n e M y a ie rk ld et B k i e ll t s y ( i m el a d r ) ­ 3 Other « 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—May................ 6,18 5.99 6.04 6 12 5.621 5 65 5 785 5 83 5 83 6.06 5.95 6.25 6.04 5.96 6 07 5.544 5 52 5 652 5 64 5 67 6 01 5 71 July 6.19 6.02 5.85 6 02 5.382 5 31 5 480 5 41 540 5 68 5.44 Aug................. 5.88 5.74 5.66 6 03 5.095 5 08 5 224 5 23 5* 15 5 41 5 32 Sept................. 5.82 5.61 5.63 5.78 5.202 5.20 5.251 5.26 519 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 5.81 5.492 5.45 5 618 5 59 551 5.56 5’47 Dec................. 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 61309 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 Apr................. 7.04 6.38 6.86 e7.4l 6.150 6.11 6 168 6 13 6 03 6 11 6 15 May................ 7.35 6,54 7.38 8'67 6.077 6.03 6.149 6.15 6J0 6.26 6.33 Week ending— 1969—May 3.......... 7.18 6 43 7.05 7 78 6.053 5 93 6 043 6 03 5 96 5 99 6.17 ' 10 7.25 6 50 7.18 8 23 5 978 5 97 6 063 6 07 6 05 6 06 6.21 17...... 7.38 6 50 7.48 8 30 6 084 6 07 6 191 6 19 6 13 6.23 6 30 24 7.38 6 50 7.50 8 91 6 148 6 05 6 231 6 12 6 08 6 38 6 39 31.......... 7.47 6.69 7.50 8.92 6.124 6.10 6^218 6.28 6J9 6.53 6.50 1 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. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. $ Certificates and selected note and bond issues. ? Selected note and bond issues. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 32 INTEREST RATES □ JUNE 1969 BONO AND STOCK YIELDS (Per cent per annum) | Stocks Government bonds Corporate bonds State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio States Total* (long­ term) Indus­ RaU- Public Pre­ Com­ Com­ Total* Aaa Baa Aaa Baa trial road utility ferred mon mon 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 3.71 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—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 4.12 4 91 6.57 6 24 6 98 6.50 6.82 6 53 5.74 3.00 Aug........................... 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 Apr......................... 5.84 5 24 5 00 5 57 7.17 6 89 7 54 7,07 7.25 7 26 6.14 3.11 May................................. 5. 85 5.39 5,19 5’.63 7.10 6^79 7^52 6.69 7.27 7J5 6.20 3.02 Week ending— 1969—Feb. 1............................. 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 Mar. 1............................. 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 Apr. 5 ............................ 6.01 5.27 5 00 5 61 7.23 6 99 7 60 7.13 7.25 7 37 6 08 3.12 12................. 5 93 5 28 5 05 5 60 7 21 6 97 7 59 7 12 7 24 7 34 6.15 3.11 19............................ 5.79 5'24 5 00 5'57 7 17 6 88 7*55 7 07 7 23 7 28 6 12 3 13 26............................ 5.75 5.19 4 95 5 50 7.12 6 81 7 50 7’03 7.27 7 19 6.18 3.13 May 3............................ 5.77 5 19 4 95 5 50 7 11 6 80 7 50 7 03 7.29 7 14 6.16 3.05 10............................ 5.70 5 19 4 95 5 50 7 10 6 79 7 49 7 00 7,27 7 13 6 13 3.03 17............................ 5.77 5.30 5 10 5 55 7 06 6 75 7 48 6 96 7.24 7 10 6.15 2.98 24............................ 5.92 5 47 5 30 5 67 7 09 6 78 7 55 6 98 7 26 7 16 6.23 3.02 31............................ 6.11 5.58 5.40 5^80 7.14 6*83 7^58 7.03 7.30 7,22 6.28 3.05 ................. Number of issues 2...................... 9 20 5 5 108 18 30 38 30 40 14 500 500 1 Includes bonds rated Aa 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 %ovt. 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/pricc ratios are 2 Number of issues varies over time; figures shown reflect most recent based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on 8 median yields for a sample of noncallable 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

JUNE 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 index 1 (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 id!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—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 72,58 92.8 75.6 100.53 109.73 51.72 65.21 56.64 59 83 ’52 86 43 30 64 60 29.20 15,139 7 491 July............... 73^99 95.3 76.1 100.30 109.16 51.01 67.55 56.41 59^ 12 51.59 44 69 68.90 29.18 14^266 6,600 74.48 95.9 78.1 98.11 106.77 48.80 66.60 55.04 57 59 49.01 44 09 68.19 28 38 10,718 4 778 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 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 Apr............... 67.73 84.2 69.5 101.26 110.68 49.53 65.63 56.61 59 41 50.88 44 34 72.38 30.14 rll,287 r5’153 May............. 66.68 82.3 70.3 104.62 114.53 49.97 66.91 58.50 61.50 50.46 45.75 75 10 31.12 12,222 6 451 Week ending— 1969—May 3........ 67,35 84.8 70.4 103.20 112.95 49.50 66,12 57.72 60.58 50.85 45.31 74.40 30.62 ’■14,536 7,341 10........ 68.00 84.5 70.6 104.81 114.77 50.00 66.81 58.62 61.63 50.71 45.73 75.74 31.19 13,523 7,683 17........ 67.41 83.1 70.9 105.64 115.64 50.58 67.52 59.04 62.08 50.63 46.18 75.84 31.32 12,409 6,527 24........ 66.11 81.7 70.2 104.53 114.40 50.02 67.08 58.44 61.45 50.21 45.79 74.61 31.08 11,363 5,560 31........ 64.40 79.9 69.2 103.66 113.49 49.32 66.31 57.97 60.95 50.07 45.39 73.97 30.98 10,684 5,543 1 Begins June 30,1965, at 10.90. On that day the average price of a share cent, 20-ycar'bond. Municipal and corporate bonds, derived from average of stock listed on the American Stock Exchange was $10.90. yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Common stocks, derived from com­ Note.—Annual data are averages of monthly figures. Monthly and ponent common stock prices. Volume of trading, average daily trading in weekly data are averages of daily figures unless otherwise noted and are stocksonthe exchanges for a 5^-hour trading day; beginning Jan. 1969 a computed as follows: U.S. Govt, bonds, derived from average market 4-hour trading day. yields in table at bottom of preceding page on basis of an assumed 3 per TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a a o n e t c n e t r t ­ ) c F c h e ( e a p e n r e s g t r e ) & l s M (y a e t a u r r s i ) ty L p r c ( o a p e ri a t e n c i n o t r e ) / (t d h c p o o P h r u ll a u i a c s s r r e . ­ e s o ) f (t a h d L m o o o u l o la a s u r . n s n o ) t f C c t ( r r e p a a o n e t n c e t r ) t ­ c F c h e ( e a p e n r e s g t ) r e & 1 s M (y a e t a u r r s i ) ty L c p r ( o a e p r a i t n e c io n t r e ) / (th d c o o p P h u l r u l a i a s c s r r . e ­ e s o ) f (th a d L o o m o u ll o a a s u r . n s n o ) t f 1963....................... 5.84 .64 24.0 73 3 22.5 16.3 5.98 .60 19 2 70 8 17.8 12.6 1964....................... 5^78 .57 24.8 74.1 23.7 17.3 5 92 55 20 0 71 3 18 9 13 4 1965....................... 5.74 .49 25.0 73 9 25 1 18 3 5 87 55 21 8 72.7 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 17 4 1968..................... 6.83 .89 25 5 73.9 30.7 22.4 6 90 83 227 73 0 25^6 18.5 1968-—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 .81 25.6 73.3 32.4 23.5 7 28 86 22 9 72.8 27.2 19.6 Mar............ 7.32 .93 25.8 73.8 33.0 24.0 7.35 84 23.0 72.7 28.2 20.2 Apr.1*......... 7.46 .98 25.5 73.4 34.8 25.1 7.46 .85 23.0 72.2 28.3 20.0 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-51. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 34 STOCK MARKET CREDIT □ JUNE 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—Apr....6....4...3..0.... 2,350 8,780 7,701 2,979 4,722 Under 30 per per per cent lars) hfay............... 6.640 2,360 9,000 8,268 3^064 5,204 per cent cent cent cent or more June............... 6,690 2,410 9,100 8^ 728 3,293 5,435 July............... 6.500 2,420 8,920 8,861 3,269 5,592 Aug. 6,460 2,490 8,950 8,489 2,984 5,505 1968-Apr... 19.8 46.1 10.8 4.7 18.7 12,270 Sept......... 6^390 2,520 8^916 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................. 5,930 2,750 8,680 9,107 3 ,597 5,510 Feb.r............. 5,570 2,810 8,560 9i 148 3 647 5^501 Mar.'....... 5.590 2,780 8,370 8,318 3’294 5^024 June.. 0.8 22.1 47.3 8.5 4.0 17.3 12,590 Apr.”............. 5,620 2,760 8,380 8,044 3,077 4,967 July... 1.2 21.3 43.5 10.4 5.1 18.5 12,060 Aug... 2.7 25.9 37.9 10.1 4.9 18.6 11,900 Sept... 5.4 32.4 29.6 8.8 4.1 19.7 11,910 1 End of month data. Total amount of credit extended by member firms Oct.... 4.3 35.9 27.0 8.9 4.2 19.7 11,540 of the New York Stock Exchange in margin accounts, estimated from Nov... 10.6 36.4 21.4 7.6 3.6 20.4 11,460 reports by a sample of 38 firms. Dec.. . 3.8 38.9 20.2 7.5 3.8 26.3 t2,060 2 Figures are for last Wed. of month for large commercial banks re­ porting weekly and represent loans made to others than brokers or dealers 1969—Jan... 5.9 40.6 20.9 8.1 4.4 20.1 11,180 for the purpose of purchasing or carrying securities. Excludes loans col­ Feb.' 2.7 38.8 22,9 9.4 5.1 21.1 10,840 lateralized by obligations of the U.S. Govt. Mar.' 5.5 37.3 21.1 9.3 4.9 21.9 10,520 Note.—Customers’ net debit and free credit balances are end-of-month Apr.” 7.5 35.1 19.7 8.8 4.6 24.4 10,820 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 date 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) debt SPECIAL MISCELLANEOUS ACCOUNT BALANCES (mil­ End of lions AT BROKERS, BY EQUITY STATUS OF ACCOUNTS period of 70 or Under dol­ more 60-69 50-59 40-49 40 (Per cent of total, unless otherwise indicated) lars)! Equity class of accounts 1968—Apr.. 6,430 48.7 26.4 10.2 4.3 10.4 Net in debit status Total May.. 6,640 51,0 24.9 8.6 4.4 11.0 End of period credit balance status 60 per cent Less than (millions or more 60 per cent of dollars) 80 or Under more 70-79 60-69 50-59 40-49 40 1968—Anr...................... 46.3 47.9 5.8 6,030 JVfay.................... 49.6 46.2 4.1 5 370 June . 6,690 14.9 33.2 28.8 8.2 4.3 10.6 June.................... 50 0 45.7 4.2 6,150 July.. 6,500 15.4 28.1 30.6 9.5 4.9 11.6 July..................... 51'7 44.4 3.9 6,000 Aug.. 6,460 17.3 28.8 28.2 9.1 4.8 11.8 Aug..................... 49.8 46.4 3.8 5,780 Sept.. 6,390 20.0 31.1 25.0 8.1 4.4 11.5 Sept..................... 51.0 45.3 3.6 5,840 Oct... 6,250 20.9 31.3 23.3 8.7 4.0 11.8 Oct...................... 529 40.3 5.2 5,640 Nov.. 6,200 25.5 31.4 19.4 7.4 3.9 12.5 Nov..................... 53,2 43.3 3.5 5,550 Dec.. 6,200 24.0 30.2 19.4 8.0 4.2 14.2 Dec...................... 54^4 40.4 5.2 5,690 1969—Jan... 5,930 24.4 29.3 20.8 7.9 4.6 13.1 1969—Jan/................... 52.6 43.2 5.1 5,700 Feb.' 5,730 20.5 28.2 22.6 9.0 5.4 14.1 Feb.'................... 52.7 41.7 5.6 5,680 Mar.' 5,590 22.1 27.9 20.5 9.5 5.2 14.8 Mar.r................. 52.9 40.9 6.1 5,400 Apr.” 5,620 24.0 26.2 20.0 9.5 4.9 15.4 Apr.”................... 52.6 42.5 5.0 5,170 1 Sec footnote 1 to tabic above. Note.—Special miscellaneous accounts contain credit balances that Note.—Each customer’s equity in his collateral (market value of col­ may be used by customers as the margin deposit required for additional lateral less net debit balance) is expressed as a percentage of current col­ purchases. Balances may arise as transfers based on loan values of other lateral value. collateral in the customer’s margin account or deposits of cash (usually sales proceeds) occur. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ OPEN MARKET PAPER; SAVINGS INSTITUTIONS A 35 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances company paper Held by— Based on— End of period Accepting banks F.R. Goods stored in or Banks Im­ Ex­ shipped between Placed Placed Total Others ports ports Dollar points in— Total through direct­ into from ex­ dealers > ly 2 Total O bi w lls n bo B u il g ls h t O ac w ct n . e F i o gn r­ U S n ta i t t e e s d U S n ta it t e e d s change United Foreign corr. States countries 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 J38 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 11094 129 187 144 1,837 792 974 27 35 1,564 1966..................... 13,279 3^089 161190 3’,603 1,198 983 215 193 191 2^022 997 829 103 80 1 ^595 1967..................... 16^635 4,901 11'634 4,’3f7 1,906 1,447 459 164 156 2,’O9O 1,086 989 37 162 2,042 1968—-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......... 181417 5,761 121656 4,359 1,624 1,282 342 56 132 2,547 1^267 1,007 17 77 I ’992 June.......... 18,798 51822 121976 41286 1,677 11366 311 134 112 2,364 1^338 944 23 55 1’925 July........... 19,746 6 ,'270 13,476 41330 1,751 1,410 341 99 128 2,352 1,390 917 42 54 1,927 Aug........... 20,734 71091 131643 41418 1,819 11474 344 51 149 2,399 1 J 435 932 100 52 1’899 Sept........... 20,264 7,737 121527 41327 1,714 1 393 321 86 124 2 403 1 ’420 945 78 46 11838 Oct............ 20,839 7,592 131247 4,420 1,551 1,280 271 56 119 2,695 I ,’479 921 80 53 11887 Nov........... 22,220 7,758 14,462 41389 1,605 1,352 253 58 114 2,612 1,476 922 68 55 1,869 Dec........... 20,497 7,201 131296 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 Mar........... 23,681 9,003 141678 41464 11499 1,233 266 94 122 2,749 1,460 872 77 119 11937 Apr........... 24,390 10,076 14,314 4,510 1,548 1,293 255 142 125 2,695 1,523 875 58 95 1,958 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— commitments3 Total General classified by maturity Other liabili­ Depos­ Other reserve (in months) End of period State Corpo­ Cash assets ties its 2 liabili­ ac­ Mort­ Other U.S. and rate and ties counts gage Govt. local and general govt. other1 reserve accts. 3 or 3-9 Over Total less 9 1941................... 4,787 89 3,592 1,"86 829 689 11,772 10,503 38 1,231 n.a. n.a. n.a. n.a. 1945................... 4,202 62 10 630 57 606 185 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. 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 51863 440 5,074 912 799 49,702 44,606 943 4,153 n.a. n.a. n.a. ‘2,549 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 n.a. n.a. n.a. 2,697 1966................... 47,193 1 078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 n.a. n.a. n.a. 2,010 1967................... 501311 11203 41319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968—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 May........ 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 62,411 1,503 3,120 640 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 11489 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 1,468 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......... 521946 1,532 3,913 200 10,001 914 1,267 70,773 63,800 1 ,707 5,266 945 1,132 1,125 3,202 Dec......... 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969—Jan.......... 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 Mar......... 54,005 1,562 3,990 194 10,649 900 1,293 72,593 65,759 1,476 5,359 778 1,266 1,171 3,214 Apr.’. ... 54,209 1,519 3,900 199 10,721 792 1,270 72,610 65,575 1,663 5,372 796 1,270 1 ,241 3,308 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 □ JUNE 1969 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l United State and M ga o g r e t s ­ e R s e ta a te l P lo o a l n ic s y O as t s h e e ts r Total States local Foreign 1 Total Bonds Stocks Statement value: 1960.................................... 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961........................................ 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962........................................ 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 6,024 1963........................................ 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964........................................ 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965........................................ 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966........................................ 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 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—Mar. r............... .... 179,817 10,892 4,678 3,190 3,024 75,774 66,411 9,363 68,035 5,271 10,336 9,509 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 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 1969—Feb.............................. 189,924 10,821 4,448 3,210 3,163 80,968 69,691 11,277 70,355 5,640 11,525 10,615 Mar............................. 190,827 10,795 4,398 3,217 3,180 81,424 69,941 11,483 70,480 5,670 11,699 10,759 i 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 totals in “other assets.” SAVINGS AND LOAN ASSOCIATIONS fin millions of dollars) Assets Liabilities Total Mortgage E pe n r d io o d f M ga o ge rt s ­ s G e U o c .S u v r . t i , ­ Cash Other1 l a ia s T s b e o il t t i s t a i 2 e l — s S c a a v p in ita gs l u R n e d a s i n e v r d id v e e s d B m or o r n o e w y e 3 d L p o r a oc n e s s i s n Other c m o lo m e a n n m ts i 4 t­ ties profits I960 60.070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 781770 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 9k 308 7,209 5’015 2,528 1,499 2,614 1964 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,590 1965 110,306 7.414 3*900 7^960 129,580 110,385 8,704 6,444 2,198 1,849 2,751 1966 114’447 7,771 3 7362 8'416 133’996 114^009 9’102 7^464 1,272 2,149 1,517 1967?.................. 121,893 9,244 3’4d8 9,057 143 602 124,562 9 557 4,739 2'281 2'463 3^631 1968-—Apr.......... 124,216 9,761 2,803 9,375 146,155 125,666 9,541 4,806 2,437 3,705 4,051 May........ 125,173 10,101 2,760 9,691 147,725 126,423 9,536 4,955 2^62 4,249 3,993 June........ 125,900 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 Aug 127,492 9,604 2,409 9,615 149 120 127,701 9 834 5,274 2,438 3,873 3,849 Sept......... 1281302 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 2368 9,658 150’978 129,329 9 831 5,335 2,416 4,067 3,856 Nov...... 1291879 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........... 131,404 9,920 2,372 9,527 153,223 131,529 10 318 5,665 2,403 3,308 3,769 Feb.......... 132,075 10,119 2’519 9,712 154*425 132 134 10 303 5,587 2,470 3,931 4,089 Mar. r... . 132,992 10,136 2,550 10,019 155,697 133,504 10,294 5,614 2,644 3,641 4,445 Apr.......... 134,032 9,870 2,375 10,042 156,319 133,012 10,292 6,060 2,803 4,152 4,668 i Includes other loans, stock in the Federal home loan banks, other 4 Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on preceding page) would include loans in process. and fixtures. 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. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ 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 e o d r e t r g a a l g N e a A ti s o s n n a , l Banks Federal Federal Assets Liabilities and capital (sec o o p n e d r a a r t y io n m s a ) rket coop f e o ra r tives i c n r t e e d rm it e b d a i n a k te s b l a a n n k d s End of period v m a b A 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 ­ t h s B n a o o n n te d d s s M po d b e s e e m i ­ r t s ­ C s a to p c it k al M lo g ( a a A o g n ) r e s t ­ D n t e a u ( o b L n r t e e e d ) s s n ­ c L a o o ( t o i t A v a o p e n ) e s s r ­ D t e u (L b re e ) s n­ c L o o a d ( u A n a is n d n ) ­ t s s D t e u (L b re e ) s n­ M lo g ( a a A o g n r ) e s t ­ Bo (L n ) ds 1961............. 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962............. 31479 11531 173 21707 1,214 1'126 2^752 2'422 735 505 1,840 1,727 3.052 2^628 1963............. 4.784 11906 159 41363 1,151 1,171 2,000 1’788 840 589 2,099 1,952 3*310 2^834 1964............. 5,325 11523 141 41369 1,199 1,227 1 340 ilddi 958 686 2,247 2,112 3,718 3,169 1965............. 5^997 11640 129 51221 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 1332 1 ^395 5 348 4,919 1 506 1,253 3,411 3,214 5,609 4’904 1968—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... 3,026 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 Mar... 5,331 2,181 97 4,674 1,244 1,443 7,417 7,193 1,663 1,425 3,921 3,743 6,317 5,535 Apr... 5,764 2,051 99 5,021 1,179 1,447 7,574 7,317 1,648 1,426 n.a. 3,907 6,412 5,719 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. elude only publicly offered securities (excluding, for the home loan banks, OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, APRIL 30r 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 banka—Cont. Notes: Association—Cont. Bonds: May 26, 1969........................6 300 Debentures: July 15, 1969....................4W 130 July 25, 1969......................5.75 400 Sept. 10, 1971...................4U 96 July 15, 1969....................4 % 60 Aug. 25, 1969........................6H 300 Sept. 10, 1971....................5M 350 July 15, 1969....................6.70 200 Oct. 27, 1969.......................6M 400 Feb. 10, 1972....................514 98 Sept. 22, 1969....................6 % 279 Jan. 26, 1970......................6.75 500 Mar. 10, 1972....................6% 250 Oct. 20, 1969......................40 209 June 12, 1972....................4% 100 Jan. 20, 1970.....................50 209 Bonds; June 12, 1973....................4% 146 Feb. 20, 1970......................514 82 June 25, 1969...................6.30 550 Oct. 1, 1973......................6 250 Feb. 20, 1970....................6.30 344 Sept. 25, 1969.......................6 400 Feb. 10, 1977....................414 198 Apr. 1, 1970......................3U 83 Nov. 25, 1969.......................6 500 Apr. 20, 1970.................6.20 362 Feb. 25, 1970.......................6 200 June 22, 1970...................6.70 174 Mar. 25, 1970.......................6 200 Banks for cooperatives June 22, 1970......................6,4 203 Mar. 25, 1970......................6.85 346 Debentures: July 20, 1970.....................554 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 ’•299 Oct. 20, 1970....................6.30 223 Aug. 25, 1970......................6.70 200 July 1, 1969....................6.40 '268 Feb. 23, 1971....................6.80 431 Feb. 25, 1971......................6.60 200 Aug. 4,1969....................6.60 '362 May 1, 1971......................3U 60 Federal National Mortgage Associa­ Oct. 1, 1969....................6.80 241 Oct. 20,1971....................6.00 447 tion—Secondary market opera­ Feb. 15, 1972....................5.70 230 tions Sept. 15, 1972......................3% 109 Federal intermediate credit banks Oct. 23, 1972......................5% 200 Discount notes................................ 2,543 De M be a n y t ur 1 e , 1 s 9 : 69.................. 5.95 418 F F e e b b . . 2 2 0 0 , , 1 19 9 7 7 4 3 . - . 7 .. 8 .. . . . . . . . . . . . . . . . . . . . . . . . . . . .4 4 J W 4 1 1 4 5 8 5 June 2, 1969...................5.65 356 Apr. 21, 1975...................4% 200 Debentures: July 1,1969.....................5J4 '326 Feb. 24, 1976...................5 123 May 12, 1969.......................4% 300 Aug. 4, 1969...................5.80 '414 July 20, 1976...................5% 150 June 10, 1969.....................6.10 250 Sept. 2, 1969...................6.05 '416 Apr. 20, 1978...................5% 150 July 10,1969......................5!4 250 Oct. 1, 1969...................6.35 492 Jan. 22, 1979...................5 285 Dec, 12, 1969.......................6 550 Nov. 3, 1969...................6.60 490 Feb. 10, 1970..................... 6.60 250 Dec. 1. 1969...................6.70 470 Tennessee Valley Authority Apr. 10, 1970.......................4% 142 Jan. 5, 1970...................6.85 525 Short-term notes..................... '370 June 10, 1970.....................6.60 400 Bonds: Sept. 10, 1970.......................414 119 Nov. 15, 1985....................4.40 50 Oct. 13, 1970......................5% 400 Federal land banks July 1, 1986......................40 50 Mar. 11, 1971......................6 350 Bonds: Feb. 1, 1987......................4U 45 June 10,1971......................6.85 250 Feb. 15, 1967-72..........4U 72 May 15, 1992....................5.70 70 Aug. 10, 1971.......................414 64 Oct. 1, 1967-70..............414 75 Nov. 13, 1992....................6% 60 Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 38 FEDERAL FINANCE □ JUNE 1969 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing R i e tu c r e e ip a t- c e c x o p u e n n t d­ Borrowings from the public 2 m Le o s n s e : t C a a ry s h a s a s n et d s M N em et o: debt Other Period Net Budget s B u u r d p g lu e s t Less: Invest­ me o a f n s tran to s fer r B e u c d e g ip e ts t p tu N e e r n x e e ­ d t s i­ le in n g d­ l o a u ys t­ 1 d ( e o - f r ic ) it P s d e u ti e c e b u b s li r t c i­ A s P e g t l i c u e e u s s n r : c i ­ y S m p e e n a c t c i s a c l o b u y n G ts ovt, S n L p o e e te s c s s ia : 3 l b E T o q i r o n u r t g o a a w l l s ­ : b o a T p s l i r a e n u e n g r r a y a c ­ t e ­ Other fin n in a e g n t , 4 c ­ p o s r w i h v n i a p e t 2 r e ­ 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....................... 149,562153,299 5,053 158,352 -8,790 6,330 5,079 5,035 4,001 -482 2,854 -5,222 303 1,017 1968....................... 153,676172,806 6,057178,862 -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 -19,348 18,442 1,650 1,079 577 -436 18,872 -131 32 375 1968—Jun.-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—Apr............. '19,048 15,199 479 15,678 3 368 -2,489 1 ,357 245 273 -19 -1,631 1,099 928 290 May....... 11 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 -4,718 894 ’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 Aus.. 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 33 612 112 -1,000 1,626 2,504 789 1,583 Feb.............. 14,590 14,361 373 14,734 — 144 — 648 195 1,159 274 — 1,887 -2,304 -126 -399 Mar. ...... 13,727 15 637 2 15,639 -1,912 782 -91 ’150 122 418 -114 -171 1,208 Apr............. 23,596 15,922 50 15,972 7,625 -1,080 -559 1,266 -449 -2,456 3,380 2,119 330 Selected balances Treasury operating balance Federal securities End Memo: pe o ri f o d B F a . n R k . s ac l c T a o o a n 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 Sp G I e n c o v i v e a t s l L , t e m a s c e s c n : o t O s u n t o h ts e f r S n L p o e e te s c s s ia : ^ l E p T h q u o b e u b y t l a d a l i l c l s : s c p p D G o o r N e i r n v o p b o a s v s t w o t t . e . r o — - e s f d 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 4,272 112 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 3,885 111 4,700 358,029 15,064 59,146 20,266 1,825 291,855 16,287 Month: 1968—Apr............. 1,035 5,372 111 6,519 346,984 23,384 56,957 19,196 2,619 291,596 9,274 May............ 956 4,225 111 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 tn 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 20,053 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 2,179 111 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 4,284 111 4,900 358,764 15,225 60,918 20,652 825 291,595 22,071 Mar............. 783 3,891 111 4,786 359,546 15,134 61,068 20,774 825 292,012 22,699 Apr.............. 950 7,105 til 8,166 358,466 14,575 62,334 20,325 825 289,557 n.a. 1 Equals net expenditures plus net lending. 3 Represents non-interest-bearing public debt securities issued to the 2 The decrease in Federal securities resulting from conversion to private International Monetary Fund and international lending organizations. ownership of Govt.-sponsored corporations is shown as a memo item New obligations to these agencies are handled by letters of credit. rather than as a repayment of borrowing from the public in the top panel. - * Includes accrued interest payable on public debt securities, deposit In the bottom panel, however, these conversions decrease the outstanding funds, miscellaneous liability and asset accounts, and seigniorage. amounts of Federal securities held by the public mainly by reductions in 5 Includes debt of Federal home loan banks, Federal land banks, D. C. agency securities. The Federal National Mortgage Association (FNMA) Stadium Fund, FNMA (beginning Sept. 1968), FICB, and Banks for was converted to private ownership in Sept. 1968 and the Federal Inter­ Cooperatives (beginning Dec. 1968). mediate Credit Banks (FICB) and Banks for Cooperatives in Dec. 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ FEDERAL FINANCE A 39 FEDERAL FISCAL OPERATIONS: DETAIL (la 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 contributions 1 Other taxes toms and re­ With Non­ Re­ Net Gross Re­ Un- net Net gift ceipts3 held with­ funds total re­ funds empl. re­ total held ceipts Pay­ insur. ceipts2 roll Selftaxes empl. Fiscal year: 1965.... ’■118,81236,840 16,820 4,86948,79226,131 670 17 359 3,819 1,07922,25614,570 1,442 2,716'1,574 1966.... '130,86342,811 18,486 5,851 55,44630,834 761 20.662 3,777 1,12725,565 13,062 1,767 3,066'1,884 1967... 149,56250,521 18,850 7,84561,52634,918 94626,041 1,776 3,659 1,865 33,347 13,719 1,901 2,978 2,120 1968... 153,67657,301 20,951 9,52768,72629,897 1,23227,679 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 59730,74711,345 54212,678 105 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 1,08619,536 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 1,290 1,179 17,544 7,834 1,213 1,417 1,413 Month: 1968—Apr.. ’■19,050 '4,047 7,687 '2,350 '9,385 4,339 *■92 2,251 859 148 '196 '3,454 1,101 185 447 '231 May. '•11,736 '5,564 539 '2,289 '3,814 763 '124 3,979 173 843 '182 '5,177 1,309 191 '361 '244 June, '19,566 '4,821 2,978 "216 ’’7,584 7,419 '112 2,499 54 '45 '195 '2,792 '1,182 176 239 '286 July. 11,651 4,560 605 151 5,013 2,259 84 2,093 114 204 2,411 1,448 205 232 167 Aug. 13^203 6,200 272 112 6,360 ’654 116 3’,664 618 167 4,449 IJ75 210 229 242 Sept. 18,753 5,565 3,682 48 9,199 5,133 133 2,273 110 55 213 2^51 1,223 205 229 247 Oct.. 10,716 4,981 378 60 5,299 1,496 218 1,939 6 108 204 2,256 1,222 212 242 207 Nov. 12,737 6,339 202 58 6,483 679 120 3,126 346 187 3,659 1,354 186 229 266 Dec., 15,820 6^068 376 46 6,397 5,273 114 1,850 15 49 204 2,118 1,412 195 256 284 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 Mar. 13,727 6,015 843 2,858 3,999 5,189 223 2,470 134 63 198 2,865 1,156 197 308 237 Apr. 23,596 3,164 9,540 2,598 12,106 5,554 231 2,555 958 162 206 3,881 1,160 224 631 271 Budget outlays Com- Educa­ Period Na­ Nat­ Com­ mun. 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 fense 4 search ture sources transp. housing power welfare govt. ac­ tions3 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 1970 •«................................ 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: 1967—July-Dec............. 86,527 •38,739 2,292 1968—Jan.—June............... 92,335 •41,784 2 429 July—Dec................. 93,163 •39,849 2’133 Month: 1968—Apr...................... 15,678 '7,103 377 Nfay........................ 16,241 •7,191 425 June................. . 14,687 •7,550 450 July. ............... 14,299 •5,897 277 Aug......................... 16,281 •6,667 434 Sept.............. 16,256 •6,686 342 Oct.......................... 16,810 •7,057 393 Nov......................... 15,125 •6,613 334 Dec.......................... 14,394 •6,929 353 1969—Jan........................... 15,761 •6 895 347 Feb.......................... 14,734 •6,426 335 Mar......................... 15,639 •6,833 385 Apr.......................... 15,972 6,934 327 353 448 255 481 46 632 4,373 694 1,407 226 -255 1 Old-age, disability, and hospital insurance, and Railroad Retirement tion of fiscal year functional classification using available Monthly Treasury accounts. Statement data. 2 Supplementary Medical Insurance premiums and Federal employee 3 Consists of government contributions for employee retirement and retirement contributions. interest received by trust funds. 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ s Estimates presented in Jan, 1969 Budget Document. Breakdowns do ous receipts. not add to totals because special allowances for contingencies and July * Half year and monthly figures represent Federal Reserve approxima­ 1969 Federal pay increase, totaling $100 million for fiscal 1969 and $3,150 million for fiscal 1970, are not included. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 40 U.S. GOVERNMENT SECURITIES □ JUNE 1969 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o o b t s a li s c l Marketable Con­ Nonmarketable i S ss p u e e c s ia 4 l debt 1 Total Total Bills C c e at r e ti s fi­ Notes Bonds 2 b v i o b e n l r e d t­ s Total 3 b S i o n a n g v 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 56.5 49.8 24.6 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 61.4 95.2 2.6 54.9 51.7 57.2 1968—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 76.5 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 78.2 81.5 2.5 56.8 52.3 61.1 Apr.. 358.5 294.2 235.0 75.3 78.2 81.4 2.5 56.8 52.2 62.3 May. 360,1 293.3 234.1 75.3 ........7..8....9. 79.8 2.5 56.7 52.2 64.9 1 Includes non-interest-bearing debt (of which $636 million on May. 31, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1969, was not subject to statutory debt limitation). bonds. 1 Includes Treasury bonds and minor amounts of Panama Canal and * 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 u r o o b t s a li s c l ag G U e o n .S v c . i t e , s F.R. Com­ Mutual In an s c u e r ­ Other S a t n a d te Individuals Fo a r n e d ig n O m t i h sc e . r debt t a ru n s d t Banks Total m b e a r n c k ia s l s b a a v n in k g s s p c a o n m ie ­ s r c a o t r io p n o s ­ g lo o c v a ts l . Savings Other na in tio te n r a ­ l 1 in to v r e s s ­ 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 1961—Dec............... 296.2 52.4 28.9 214.8 67.2 6,1 18.5 19.0 46.4 19.5 13.4 13.5 11,3 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 11.2 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 11,0 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 10.3 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—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 21.2 347.0 73.1 50.5 223.4 59 8 4.0 8.3 13.6 26.9 51.2 24.0 14.7 20.9 352.3 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 13.6 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 21.1 354.4 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 21.0 356.9 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 20.1 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 Mar............... 359.5 79.0 52.4 228.1 60.6 3.6 7.7 17.8 28.1 51.4 25.0 11.8 22.1 1 Consists of investment of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 9 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately-owned agencies and certain Govt, Note—-Reported data for F.R. Banks and U.S. Govt, agencies deposit accounts. and trust funds; Treasury estimates for other groups. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 a U.S. GOVERNMENT SECURITIES A 41 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 1966—Dec. 31.....2...1..8...,.0..2...5...........1..0...5..,.2..1...8.............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.................................................................. 236,812 108,611 75,012 33,599 68,260 35,130 8,396 16,415 1969—Feb. 28.................................................................. 236,535 100,282 76,769 23,513 75,778 35,727 8,392 16,354 Mar. 31.................................................................. 237,272 103,342 77,547 25,795 73,494 35,726 8,391 16,320 U.S. Govt, agencies and trust funds: 1966—Dec. 31............................................... 1967__Dec. 31......................................................... 1968 Dec. 31........................................................ 15,402 2,438 1,034 1,404 4,503 2,964 2,060 3,438 1969 Feb. 28........................................................ 15,771 2,503 1,113 1,390 4,775 2,998 2,058 3,437 15,932 2,616 1,231 1,385 4,767 3,054 2,059 3,437 Federal Reserve Banks: 1966—Dec. 31........4..4...,.2..8...2.............3...5..,.3...6..0.... 12,296 23,064 7,502 1,007 153 260 1967—Dec. 31........................................................ 49,112 31,484 16,041 15,443 16,215 858 178 377 1968—Dec. 31........................................................ 52,937 28,503 18,756 9,747 12,880 10,943 203 408 1969—Feb. 28........................................................ 52,275 19,288 17,993 1,295 19,017 13,352 203 414 Mar. 31........5..2...,.4..0...5.............1...9..,.8...2..2.............17,892 1,930 18,521 13,412 213 437 Held by private investors: 1966—Dec. 31............................................... 1967—Dec. 31......................................................... 1968—Dec. 31........................................................ 168,473 77,670 55,222 22,448 50,877 21,223 6,133 12,569 1969—Feb. 28........................................................ 168,489 78,491 57,663 20,828 51,986 19,377 6,131 12,503 Mar. 31......1..6...8..,.9..3...5.............8..0...,.9..0...4.............58,424 22,480 50,206 19,260 6,119 12,446 Commercial banks: 1966—Dec. 31........4..7..,..1..8...2.. ...........1..5...,.838 8,771 7,067 21,112 9,343 435 454 1967—Dec. 31............................................... 52,194 18,451 10,415 8,036 26,370 6,386 485 502 1968—Dec. 31............................................... 53,174 18,894 9,040 9,854 23,157 10,035 611 477 1969—Feb. 28............................................... 49,025 15,720 6,366 9,354 23,332 8,928 577 468 Mar. 31.............................................. 48,890 16,601 6,524 10,077 22,495 8,770 556 469 Mutual savings banks: 1966—Dec. 31..........4..,..5..3...2.. .................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................................................ 3,524 696 334 362 1,117 709 229 773 1969—Feb. 28............................................... 3,604 791 468 323 1,184 646 222 760 Mar. 31................................................ 3,611 830 496 334 1,163 642 218 758 Insurance companies: 1966—Dec. 31.........8..,..1..5..8... .................847 508 339 1,978 1,581 1,074 2,678 1967—Dec. 31................................................ 7,360 815 440 375 2,056 914 1,175 2,400 1968—Dec. 31................................................ 6,857 903 498 405 1,892 721 1,120 2,221 1969—Feb. 28............................................... 6,767 972 576 396 1,861 600 1,143 2,190 Mar. 31............................................... 6,682 977 523 454 1,781 602 1,184 2,139 Nonfinancial corporations: 1966—Dec. 31................................ 6,323 4,729 3,396 1,333 1,339 200 6 49 1967—Dec. 31................................................ 4,936 3,966 2,897 1,069 898 61 3 9 1968—Dec. 31................................................ 5,915 4,146 2,848 1,298 1,163 568 12 27 1969—Feb. 28............................................... 7,421 5,437 3,862 1,575 1,431 531 13 8 Mar. 31................................................ 7,218 5,407 3,471 1,936 1,307 483 13 8 Savings and loan associations: 1966—Dec. 31..........3..,.8...8..3....................782 583 199 1,251 1,104 271 475 1967—Dec. 31............................................... 4,575 1,255 718 537 1,767 811 281 461 1968—Dec. 31................................................ 4,724 1,184 680 504 1,675 1,069 346 450 1969—Feb. 28............................................... 4,983 1,365 885 480 1,836 979 343 459 Mar. 31................................................ 4,965 1,360 875 485 1,817 985 342 461 State and local governments: 1966—Dec. 31........1..5...,.3..8...4.. .............5...,.545 4,512 1,033 2,165 1,499 1,910 4,265 1967—Dec. 31............................................... 14,689 5,975 4,855 1,120 2,224 937 1,557 3,995 1968—Dec. 31................................................ 13,426 5,323 4,231 1,092 2,347 805 1,404 3,546 1969—Feb. 28............................................... 14,533 6,462 5,442 1,020 2,520 728 1,359 3,465 Mar. 31................................................ 13,835 6,081 4,993 1,088 2,535 743 1,348 3,129 All others: 1966—Dec 31...................................... 1967 Dec 31 . . 1968—Dec. 31............................................... 80,853 46,524 37,591 8,933 19,526 7,316 2,411 5,075 1969—Feb. 28............................................... 82,156 47,744 40,064 7,680 19,822 6,965 2,474 5,153 Mar. 31............................................... 83,734 49,648 41,542 8,106 19,108 7,035 2,458 5,482 Note.—Direct public issues only. Based on Treasury Survey of ketable issues held by groups, the proportion held on latest date by those Ownership. reporting in the Survey and the number of owners surveyed were: (1) Beginning with Dec. 1968, certain Govt.-sponsored but privately-owned about 90 per cent by the 5,814 commercial banks, 499 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 754 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “AU others.” Comparable data the 469 nonfinancial corporations and 488 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 503 State and local govts. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks “All others,” a residual, includes holdings of all those not reporting but for other groups are based on Treasury Survey data. Of total mar- 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 □ JUNE 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 W 1 y it e h a in r ye 1 a -5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U D .S e . a G le o rs v t a , nd brokers m b C e a o n rc m k i s a ­ l o A th l e l r securities securities Other 2,246 1,972 185 60 28 759 75 827 586 227 May............................. 2,247 1,756 295 174 22 719 75 831 622 262 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 1705 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 1 096 111 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 Mar............................. 2^254 1 ^962 180 69 43 829 91 837 496 319 Apr............................. 2,270 1 ^998 165 69 39 803 97 840 530 387 Week ending— 1969—Apr. 2............. 2,245 1,977 157 70 40 689 81 888 587 304 ‘ 9....................... 2,432 2,170 163 61 38 772 99 965 596 253 16....................... 2,005 1,698 192 72 43 650 85 757 512 416 23....................... 2,046 1 1778 160 72 36 718 88 737 502 467 30r............ 2,351 2,127 136 59 28 980 112 851 408 388 May 7....................... 2,557 1,917 245 362 34 945 125 943 546 526 ' 14....................... 2,339 1,911 207 187 33 826 104 762 647 231 21.............. 2,217 1 345 207 135 30 862 93 703 560 438 28...................... 1,989 1,661 185 106 38 425 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 ye 1 a -5 rs 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 i y . e s Period so A ur l c l e s Y N o e r w k w E h ls e e r ­ e C t o io rp ns o r 1 a­ o A th l e l r City 1968—Apr.......... 2,981 2,601 236 142 403 May........ 3,204 2^85 306 312 382 1968—Apr........... 3,073 794 832 937 510 June........ 3,308 2,826 222 261 576 May.......... 3,162 699 923 844 696 July......... 4,420 3,972 159 288 644 June.......... 3,458 867 879 1,010 702 Aug...... 5,262 4,097 283 881 732 July........... 4,341 1,193 1,032 1,415 701 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........... 51519 1,596 1,894 1,254 775 Nov......... 3,766 2,948 160 659 652 Oct........ 4,518 1 163 1,664 903 788 Dec......... 4,093 3,606 136 352 615 47191 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 Mar......... 2,230 2,119 -37 149 507 Feb............ 21660 417 361 1,311 573 Apr......... 3,107 2,997 — 60 170 740 Mar........... 2,322 396 370 1,031 526 Apr. 3,392 963 497 1 '086 847 Week ending— Week ending— 1969—Mar, 5.. 2,299 2,115 34 151 486 12.. 2,031 1,921 -33 143 458 1969—Mar. 5... 2,413 477 347 1,128 461 19.. 2,108 2,040 -53 122 493 12... 2,196 317 356 1,156 367 26.. 2,163 2,061 -49 151 543 19. .. 2,244 321 373 978 572 26... 2,380 429 340 963 648 Apr. 2.. 2,702 2,539 -50 193 603 9.. 3,178 3,040 -54 192 566 Apr. 2... 2,505 465 440 926 674 16. . 3,439 3,320 -65 185 676 9. 3,317 1,025 456 990 846 23.. 3,021 2,908 -46 159 835 16. 3,848 1,319 609 1,189 731 30. . 2,993 2,938 -82 136 901 23. 3,507 974 560 1,161 812 30... 3,076 660 380 1,048 988 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

JUNE 1969 □ GOVERNMENT SECURITIES A 43 U.S. GOVERNMENT MARKETABLE ANO CONVERTIBLE SECURITIES, MAY 31, 1969 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Coat. Treasury bonds—Cont. May 31, 1969. 1,503 Oct. 31 1969........... 1,502 Apr. 1, 1972. 34 Aug. 15, 1972.........4 2,579 June 5, 1969. 2,701 Nov. 6,’ 1969............. 1,300 May 15, 1972 5,310 Aug. 15, 1973.........4 3,894 Juno 12, 1969. 2,701 Nov. 13’ 1969............. 1,300 Oct. 1, 1972. 33 Nov. 15, 1973..........44 4,349 June 19, 1969. 2,702 Nov. 20’ 1969............. 1,301 Apr. 1, 1973. 34 Feb. 15, 1974..........44 3,129 June 23, 1969f 6,771 Nov. 28,’ 1969............. 1,300 Oct. 1, 1973 30 May 15, 1974..........44 3,585 June 26, 1969. 2,705 Nov. 30’, 1969............. 1,501 Apr. 1, 1974. 2 Nov. 15, 1974..........3% 2,240 June 30, 1969.. 1,502 Dec. 31’ 1969............. 1,500 Aug. 15, 1974. 10,284 May 15, 1975-85...44 1,215 July 3, 1969. 2,705 Jan. 31', 1970............. 1,501 Nov. 15, 1974. 3,981 June 15, 1978-83...34 1,560 July 10, 1969. 2,704 Feb. 28' 1970............. 1,000 Feb. 15, 1975. 5,148 Feb. 15, 1980.........4 2,598 July 17, 1969. 2,702 Mar. 3 k 1970............. 1,001 May 15, 1975. 6,760 Nov. 15, 1980..........34 1,906 July 24, 1969. 2,698 Apr. 30' 1970............. 1,001 Feb. 15, 1976 6*4 3,726 May 15, 1985..........34 1,100 July 31, 1969. 4,209 May 15, 1976. 6'4 2,697 Aug. 15, 1987-92... 44 3,815 Aug. 7, 1969. 2,801 Treasury notes Feb. 15, 1988-93... 4 249 Aug. 14, 1969. 2,802 Aug. 15, 1969........6 3,366 Treasury bonds May 15, 1989-94... 44 1,559 Aug. 21, 1969. 2,805 Oct. 1, 1969.........14 159 June 15, 1964-69...2'4 966 Feb. 15, 1990..........34 4,852 Aug. 28, 1969. 2,802 Apr. i; 1970........14 88 Dec. 15, 1964-69... 2'4 2,485 Feb. 15, 1995.........3 1,505 Aug. 31, 1969. 1,506 May 15, 1970........5% 7,793 Mar. 15, 1965-70.. .24 2,282 Nov. 15, 1998..........34 4,277 Sept. 4, 1969. 1,101 May 15, 1970........ 64 8,759 Mar. 15, 1966-71.. .24 1,222 Sept. 11, 1969. 1,100 Aug. 15, 1970........6^ 2,329 June 15, 1967-72...24 1,244 Sept. 18, 1969. 1,100 Ocf. 1, 1970.........14 113 Sept. 15, 1967-72...24 1,952 Sept. 25, 1969. 1,101 Nov. 15, 1970.........5 7,675 Dec. 15,1967-72. ..24 2,596 Sept. 30, 1969. 1,501 Feb. 15', 1971........5^ 2,509 Oct. 1, 1969..........4 6,241 Oct. 2, 1969. 1,100 Apr. 1, 1971........14 35 Feb. 15, 1970..........4 4,381 Oct. 9, 1969. 1,101 May 15, 1971........54 4,265 Aug. 15, 1970..........4 4,129 Oct. 16, 1969. 1,101 Oct. 1, 1971.........14 72 Aug. 15, 1971..........4 2,806 Convertible bonds Oct. 23, 1969. 1,103 Nov. 15, 1971........5% 1,734 Nov. 15, 1971..........34 2,760 Investment Series B Oct. 30, 1969. 1,100 Feb. 15, 1972........4*4 2,006 Feb. 15, 1972..........4 2,343 Apr. 1, 1975-80...24 2,463 t Tax anticipation series. Non.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) AU issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Use of proceeds Period amount deliv­ Total G g o a e b a t n i U o l e n - r ­ s R n e u v e e­ HAA1 G lo U o a .S n vt . s , State S di s p a s t e n t a r c d t i i , c a t l Other* ered 3 Total c E a d ti u o ­ n b R r a i o d n a g d d e s s i U tie n s ­ 4 H in o g u s s­ Ve a a n t i e d s r ’ ­ O p p o t s u h e e r 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,’ilO 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 JI 5 n.a. 14,643 4^473 1,254 2,404 645 5^867 1968................. 16^596 9,269 6^517 528 282 2,774 5 946 7 884 n.a. 16,489 4,820 1,526 2,833 787 6*523 1968—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. °1,395 374 185 259 8 570 July.... 1,469 813 637 20 257 597 615 n.a. 1 366 396 114 282 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...... 1,140 337 781 22 20 415 706 n.a. 1,138 169 46 196 20 707 1969—Jan........ 1 J60 940 310 11 546 285 430 n.a. 1358 360 165 168 4 561 Feb... . '986 459 378 143 7 144 477 365 n.a. '984 244 222 170 146 202 Mar...... 525 320 194 11 110 145 270 n,a. 525 254 94 70 3 105 Apr.*... 1,778 994 776 ............8 539 732 600 n.a. 1,776 353 36 296 5 .....1.,.0..8..5 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 □ JUNE 1969 TOTAL NEW ISSUES (In millions of dollars) Grow proceeds, all issues 1 Proposed use of net proceeds, all corporate issues 6 Noncorporate Corporate New capital Re- Period Total U.S. U.S. Bonds Stock Total Other m ti o r e c f n - t G U o . v S t . . 2 G a c g o y e v n 3 t ­ , l S o a c t n a a d te l * Other 5 Total Total of P l f i e c u r l b y e ­ d p v l a P a t c r e i e ­ ly d fe P r r r e e ­ d C m o o m n ­ Total m N on ew ey 7 p p o u s r e ­ s s ri e ti c e u s ­ I960. 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 9,653 8,758 895 271 1961 35,527 12,253 1,448 8,360 303 13,165 9,420 4*700 4.720 450 3,294 12,885 12,017 10,715 1,302 868 1962 29,956 8,590 1,188 8,558 915 10,705 8,969 4,440 4,529 422 1,314 10,501 9,747 8,240 1,507 754 1963 35,199 10,827 1,168 10,107 887 12,211 10,856 4,713 6,143 343 1,011 12,049 10,523 8,898 1,625 1,526 1964 37,122 10,656 1,205 10,544 760 t3,957 10,865 3,623 7,243 412 2,679 13,792 13,038 11,233 1,805 754 1965 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 15,801 14,805 13,063 1,741 996 1966 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 17,841 17,601 15,806 1,795 241 1967 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 24,409 24,097 22,233 1,867 312 1968-—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 1,422 130 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 n.a. n.a. n.a. n.a. n.a. Nov........ 3,294 379 1 ,037 118 1,767 1,301 939 362 41 425 n.a. n.a. n.a. n.a. n.a. Dec......... 3,812 377 223 1,138 20 2,054 1,572 607 965 19 464 n.a. n.a. n.a. n.a. n.a. 1969-—Jan......... 4,284 427 424 1,244 ••113 "2,075 "1,616 980 "636 67 393 n.a. n.a. n.a. n.a. n.a. Feb......... 4,086 443 450 974 ’•174 "2,045 "1,237 842 "395 72 736 n.a. n.a. n.a. n.a. n.a. Mar..... 3,514 382 453 520 61 2,098 1,344 835 509 98 657 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 ll r a c n ia eo l u a s nd Transportation Public utility Communication a R nd e a fi l n e a s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital ’ secu­ capital • secu­ capital 8 secu­ capital ■ secu­ capital 8 secu­ capital 8 secu­ rities rities rities rities rities rities I960. 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961. 3,691 287 1,109 36 651 35 2,883 106 1,435 382 2,248 22 1962. 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 1963. 3,272 199 756 53 861 87 1,939 703 733 359 2,962 125 1964. 2,772 243 1,024 82 941 32 2,445 280 2,133 36 3,723 80 1965. 5,015 338 1,302 79 967 36 2,546 357 847 92 4*128 93 1966. 6,855 125 1,356 44 1,939 9 3,570 46 1,978 4 1,902 14 1967. 10,774 111 2,211 47 2,016 22 4,741 127 1,955 1 2,399 5 1968--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. Feb.................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Mar.................................. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price. 7 For plant and equipment and working capital. > Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. * See Noth 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

JUNE 1969 □ SECURITY ISSUES A 45 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers AU 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 Invest. Other Invest. Other Invest. Other cos.1 cos.1 cos.1 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 4,649 8,098 5,583 3,205 2,134 3,242 3,450 -37 1966....................... 26,327 9,567 16,761 15,629 4,542 11,088 6,529 4,169 2,025 3,000 4,504 1,169 1967....................... 33,303 10,496 22,537 21,299 5,340 15,960 6,987 4,664 2,761 2,397 4,226 2,267 1967—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 II................ 8,395 3,933 4,462 5,124 1,308 3,816 1,846 1,424 1,053 1,572 762 -147 HI.............. 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 1,575 3,953 3,432 1,982 1,032 2,561 2,400 -579 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation s utility cation and financial 4 & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & 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 lr 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 HI.............. 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 < 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 es t Total 2 po C s a it s io h n 2 Other Sales 1 Re ti d o e n m s p­ s N al e e t s Total i po C s a it s io h n 5 Other 1957.............. 1,391 406 984 8,714 523 8,191 1968—Apr.. 618 309 309 46,179 3,923 42,256 1958.............. 1,620 511 1,109 13,242 634 12,608 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 July. 582 344 237 47,342 3,113 44,229 1960.............. 2,097 842 1,255 17,026 973 16,053 Aug.. 531 309 222 48,470 3,459 45,011 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Sept.. 494 292 202 51,030 3,747 47,283 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Oct... 653 396 257 51,633 3,384 48,249 Nov.. 688 313 375 54,860 3,413 51,447 1963.............. 2,460 1,504 952 25,214 l,34t 23,873 Dec.. 653 319 354 52,677 3,187 49,490 1964........ 3,404 1,875 1,528 29,116 1,329 27,787 1965.............. 4,359 1,962 2,395 35,220 1,803 33,417 1969—Jan... 876 397 479 53,323 3,831 49,492 Feb.. 625 379 246 50,512 3,880 46,632 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Mar.. 628 285 343 51,663 4,331 47,332 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Apr.. 654 348 306 52,787 4,579 48,208 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 i Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, all U.S. Govt, securities, and other and contractual accumulation plan sales, and reinvestment of invest­ short-term debt securities, less current liabilities. ment income dividends; excludes reinvestment of realized capital gains dividends. Note.—Investment Company Institute data based on reports of mem­ 2 Market value at end of period less current liabilities. bers, which comprise substantially 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 □ JUNE 1969 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1967 1968‘ Industry 1964 1965 1966 1967 1968 I II in IV I' Ii' III' IV Manufacturing Total (177 corps.): Sale,.............................................. 158,253 177,237 177,738201,399225,027 48,585 51,679 48,317 52,818 53,781 57,767 53,760 59,719 Profits before taxes....................... 18,734 22,046 23,487 20,898 25,492 5,153 5,608 4,232 5,867 6,045 6,938 5,526 6,982 Profits after taxes.......................... 10,462 12,461 13,307 12,664 13,754 2,918 3,190 2,268 3,268 3,312 3,624 2,975 3,842 Dividends................................. 5,933 6,527 6,920 6,989 7,196 1,670 1,701 1,721 1 ,897 1,712 1,719 1,731 2,034 Nondurable goods industries (78 corps.): 2 Sales.............................. 59,770 64,897 73,643 77,969 84,598 18,743 19,535 19,695 19,996 20,304 21,060 21,325 21,910 Profits before taxes...................... 6,881 7,846 9,181 9,039 9,982 2,153 2,250 2,209 2,427 2,447 2,553 2,490 2,492 Profits after taxes......................... 4,121 4,786 5,473 5,379 5,765 1,319 1,323 1,313 1,431 1,442 1,426 1,416 1,481 Dividends..................................... 2,408 2,527 2,729 3,027 3,050 720 756 770 781 743 742 752 812 Durable goods industries (99 corps.): 3 Sales......................... 98,482 112,341 122,094123,429 140,429 29,842 32,144 28,622 32,821 33,477 36,707 32,435 37,809 Profits before taxes...................... 11,853 14,200 14,307 11,822 15,510 3,000 3,358 2,024 3,440 3,598 4,386 3,036 4,490 Profits after taxes......................... 6,341 7,675 7,834 6,352 7,989 1 ,599 1,847 1,068 1,838 1 ,871 2,198 1,559 2,361 Dividends...................................... 3,525 4,000 4,191 3,964 4,146 950 945 952 1,117 968 977 979 1,222 Selected industries: Foods and kindred products (25 corps.): Sales.............................................. 15,284 16,427 19,038 20,134 22,109 4,963 5,060 5,131 4,980 5,184 5,389 5,737 5,799 Profit, before taxes...................... 1,579 1,710 1,916 1,967 2,227 447 482 526 512 498 563 590 576 Profits after taxes......................... 802 896 1,008 I ,041 1 ,093 236 253 284 268 255 260 285 293 Dividends...................................... 481 509 564 583 590 148 144 146 145 150 146 146 147 Chemical and allied products (20 corps.): Sales.............................................. 16,469 18,158 20,007 20,561 22,808 4,998 5,163 5,117 5,284 5,436 5,697 5,782 5,893 Profits before taxes...................... 2,597 2,891 3,073 2,731 3,117 694 700 636 701 760 807 806 744 Profits after taxes........................ 1 ,400 1,630 1,737 1,579 1,618 396 404 363 416 390 419 412 398 Dividends...................................... 924 926 948 960 1,002 238 235 235 252 236 236 243 287 Petroleum refining (16 corps.): Sales.............................................. 16,589 17,828 20,887 23,258 23,955 5,390 5,808 5,985 6,075 6,038 6,048 5,874 5,995 Profits before taxes..................... 1,560 1,962 2,681 3,004 2,983 684 741 744 835 827 753 685 717 Profits after taxes......................... 1,309 1,541 1,898 2,038 2,173 505 504 504 540 606 534 506 527 Dividends............................... 672 737 817 1,079 1 ,036 232 280 286 281 253 255 258 271 Primary metals and products (34 corps.): Sales.............................................. 24,195 26,548 28,558 26,532 29,721 6,801 7,040 6,525 6,166 7,150 8,427 7,461 6,683 Profits before ............................... 2,556 2,931 3,277 2,487 2,921 693 670 477 647 669 915 601 735 Profits after taxes......................... 1 ,475 1,689 1,903 1,506 1 ,750 395 411 290 410 376 550 343 482 Dividends...................................... 763 818 924 892 924 222 214 228 228 224 230 233 237 Machinery (24 corps.): Sales.............................................. 22,558 25,364 29,512 32,721 35,660 7,704 7,933 8,994 8,994 8,371 8,864 8,907 9,517 Profits before taxes...................... 2,704 3,107 3,612 3,482 4,134 868 807 837 970 936 1 ,008 1,112 1 ,079 Profits after taxes......................... 1,372 1 ,626 1,875 1,789 2,014 421 417 438 513 448 499 537 531 Dividends................... 673 774 912 921 976 232 233 227 229 243 244 244 245 Automobiles and equipment (14 corps.): Sales.............................................. 35,338 42,712 43,641 42,306 50,526 10,413 11,785 8,354 11,664 12,343 13,545 9,872 14,767 Profits before taxes...................... 4,989 6,253 5,274 3,906 5,916 1,050 1,436 216 1,204 1,507 1,851 640 1 ,918 Profits after taxes......................... 2,626 3,294 2,877 1,999 2,903 583 782 62 572 783 847 330 943 Dividends..................................... 1 ,629 1,890 1,775 1 ,567 1 ,642 363 365 362 477 364 364 364 550 Public utility Railroad: Operating revenue....................... 9,778 10,208 10,654 10,366 10,854 2,536 2,628 2,529 2,673 2,610 2,757 2,707 2,781 Profits before taxes...................... 829 980 1,088 391 632 145 163 83 1 125 205 115 186 Profits after taxes......................... 694 816 902 325 566 121 143 78 -17 110 174 108 174 Dividends...................................... 438 468 496 539 517 124 156 103 155 116 136 98 166 Electric power: Operating revenue r..................... 15,156 15,816 16,959 17,954 19,421 4,709 4,291 4,417 4,537 5,106 4,553 4,869 4,892 Profits before taxes'..................... 3,926 4,213 4,414 4,547 4,789 1,278 1,026 1,155 1,088 1,351 1,040 1,271 1,125 Profits after taxes'....................... 2,375 2,586 2,749 2,908 3,002 798 665 717 728 863 641 764 733 Dividends r............................ 1 ,682 1,838 1 ,938 2,066 2,201 516 508 513 529 539 555 543 565 Telephone: Operating revenue....................... 10,550 11,320 12,420 13,311 14,430 3,229 3,312 3,341 3,429 3,486 3,544 3,629 3,771 Profits before taxes...................... 3,069 3,185 3,537 3,694 3,951 869 923 953 949 971 989 990 1 ,001 Profits after taxes....................... 1 ,590 1,718 1,903 1,997 1,961 472 498 515 513 525 441 493 502 Dividends.................... 1 ,065 1,153 1,248 1,363 1,428 334 337 341 351 351 318 396 363 1 Manufacturing profits after taxes are partly estimated to reflect a 10 profits before taxes are partly estimated by the Federal Reserve to include per cent surcharge each quarter. affiliated nonelectric operations. 2 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 3 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts, of American Telephone and Telegraph Co.) published reports of companies. and for 2 affiliated telephone companies. Dividends are for the 20 operat­ Railroads: Interstate Commerce Commission data for Class I line­ ing subsidiaries and the 2 affiliates. haul railroads. All series: Profits before taxes are income after all charges and before, Electric power: Federal Power Commission data for Class A and B Federal income taxes and dividends. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ BUSINESS FINANCE A 47 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e a ro x fo e fi r s t e s c ta o I x n m e ­ e s P t a a r f o x t e f e it s r s d C d e a i n v s d i h ­ s t U r p ib r n o u d f t i i e t s s d ­ co c a n a t l s i l p o o u i n w t m a ­ l p ­ Quarter P b ta e ro x fo e fi r s t e s c ta o I x n m e ­ e s P t a a r f o x t e e fit s r s d C d e a i n v s d i h ­ s t U r p ib r n o u d f t i i e t s s d ­ co c a t n a i l o s l p o u n i w t m a ­ l p ­ ances1 ances 1 1961.............. 30.3 23,1 27.2 13.8 13.5 26.2 1967—11.... 80.3 33.0 47.3 23.2 24,1 42.9 1962.............. 53.4 24.2 31.2 15.2 16.0 30.1 ni... 80.8 33.2 47.6 23.5 24.1 44.1 1963.............. 39.4 26.3 33.1 16.5 16.6 31.8 IV... 85.4 35.1 50.3 22.5 27.9 44.9 1964........ 66.8 28.3 38.4 17.8 20.6 33.9 1968—1.... 88.9 39.8 49.1 23.6 25.5 45.7 1965.............. 77.8 31.3 46.5 19.8 26.7 36.4 II.... 91.8 41.1 50.7 24.4 26.3 46.7 1966.............. 85.6 34.6 51.0 21.7 29.3 39.7 III... 92.7 41.5 51.2 25.2 26.0 47.6 1967.............. 81.6 33.5 48.1 22.9 25.2 43.4 IV... 95.7 42.8 52.8 25.4 27.5 48.5 1968.............. 92.3 41.3 51.0 24.6 26.3 47.1 1969—1». .. 96.0 43.0 53.0 25.4 27.7 49.3 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts, Notes and accts, End of period working U.S. receivable payable Accrued capital Total Cash s G e o cu 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 Oovt.t 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—1........................ 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 ....1..9..3....8.........4..4.4.9 47.7 11.5 4.6 207.5 149.2 24.3 251.1 5.4 177,0 12.7 55,9 HI..................... 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—I........................ 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 HI..................... 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 Durable d N ur o a n b ­ le Mining Railroad Other u P ti u li b ti l e ic s n C ic o a m ti m on u s ­ Other > a ( r n S a n t . e u A ) a . l 1962........................................ 37.31 7.03 7.65 1,08 .85 2,07 5.48 3.63 9.52 1963........................................ 39*22 7.85 7.84 1.04 1,10 1*92 5.65 3*79 10.03 1964.............................. 44.90 9.43 9.16 1.19 1.41 2.38 6.22 4.30 10.83 1965..................................... 51.96 11.40 11.05 1.30 1.73 2,81 6.94 4.94 11.79 1966........................................ 60,63 13.99 13.00 1.47 1.98 3,44 8.41 5.62 12.74 1967........................................ 61.66 13.70 13.00 1.42 1.53 3^88 9.88 5.91 12.34 1968........................................ 64.08 13.51 12.93 1.42 1.34 4.31 11.54 6.36 12.67 19692r............................... 72.17 15.61 14.38 1.58 1.54 4 83 13.09 7.60 13.54 1967—11................................. 15.61 3.46 3.34 .34 .41 1.12 2.46 1.49 2.99 61.50 HI................................ 15.40 3.33 3,15 .37 .35 .98 2.66 1.46 3.09 60.90 IV................................ 17.05 3.82 3,48 .39 .36 1.07 2.92 1.62 3.39 62.70 1968—1.................................. 14.25 2,96 2.82 .36 .37 .98 2.33 1.48 2,93 64.75 .......1..5....8..6. 3,22 3.28 .36 .36 1.04 2.97 1.51 3.11 62.60 16,02 3.37 3.25 .34 .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—1.................................. 15.21 3.26 2.95 .36 .32 1.06 2.66 1.68 2.91 68.90 II2........................ 18.21 3.96 3.65 .43 .38 1.24 3.40 5.17 72.00 IIP.............................. 18.49 3.95 3.68 .39 .40 1.24 3.50 5.33 73.45 1 Includes trade, service, finance, and construction. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business, excluding agriculture. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 48 REAL ESTATE CREDIT □ JUNE 1969 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses 4 Multifamily and Mortgage holders2 commercial properties’ type6 End of Finan­ Finan­ period All cial All cial Other All hold­ insti­ Indi­ hold­ insti­ hold­ hold­ FHA— ers tutions 1 U.S. viduals ers tutions * ers ^ ers Finan, Other Finan, Other VA- Con­ agen­ and Total insti­ hold­ Total insti­ hold­ under­ ven­ cies others tutions 1 ers tutions! ers written tional 1941.......... 37.6 20.7 4.7 12 2 6 4 I 5 4 9 31.2 18 4 11.2 7.2 12 9 8.1 4 8 3 0 28 2 1945.......... 35.5 21.0 2.4 12.1 4.8 1.3 3 4 30.8 18.6 12.2 6.4 12 2 7.4 4.7 4 3 26 5 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 28.7 916 72.5 19.1 81.2 223 4 1966*........ 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 239.5 1967*........ 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.1 1968*........ 397. 3 319.9 21.7 55.6 27.5 9.7 17 8 369.8 251,5 213.5 37.9 118 3 96,7 21.6 92 8 276 5 1966-III».. 343.6 287.2 15.2 50.2 23.0 8.4 14.6 320.6 221.9 191,1 30.8 98.7 78.7 20.1 83.4 236.9 IV*.. 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 239.5 1967-1*. . . 350.5 282.9 16.4 51.3 23.7 8.5 15.3 326.8 224.9 192.8 32.1 101.9 81.6 20.3 84.4 241.9 II*... 356.2 287.6 16.7 51.9 24.3 8.7 15.6 331.9 227.8 195.3 32.5 104.1 83.6 20.5 85.3 246.1 ini’.. 363.3 293.3 17.5 52.5 24.9 8.9 16.0 338.3 232.0 198.7 33.3 106.4 85.7 20.7 86.4 251.5 IV».. 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.1 1968-1*... 375.7 302.6 19.6 53.5 26.0 9.3 16.7 349.7 239.3 203.9 35.4 110.4 89.5 21.0 89.4 259.9 IP... 382.9 308.1 20.6 54.2 26.8 9.6 17.1 356.2 243.3 206.8 36.5 112.8 91.7 21.1 90.7 265.1 HI*.. 389.8 313.5 21.1 55.1 27.2 9.7 17.5 362.6 247.3 209.9 37.4 115.3 94.0 21.3 92.0 270.2 IV».. 397.3 319.9 21.7 55.6 27.5 9.7 17.8 369.8 251.5 213.5 37.9 118.3 96.7 21.6 92.8 276.5 1 Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by savings trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone 2 U.S. agencies include former FNMA and, beginning fourth quarter are shown on second page following. 1968, new GNMA as well as FHA, VA, PHA, Farmers Home Admin., and in earlier years, RFC, HOLC, and FFMC. They also include U.S. Note.—Based on data from Federal Deposit Insurance Corp., Federal sponsored agencies—new FNMA and Federal land banks. Other agencies Home Loan Bank Board, Institute of Life Insurance, Depts, of Agricul­ (amounts small or current separate data not readily available) included ture and Commerce, Federal National Mortgage Assn., Federal Housing with “individuals and others.” Admin., Public Housing Admin,, Veterans Admin., and Comptroller of 3 Derived figures; includes debt held by Federal land banks and farm the Currency. debt held by Farmers Home Admin. Figures for first three quarters of each year are F.R. estimates. 4 For multifamily and total residential properties, see p. A-50. 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 1941.............................. 4.906 3,292 1,048 566 4,812 3,884 900 28 1945.............................. 4,772 3'395 '856 521 4,208 3,387 797 24 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.............................. 491675 32,387 7^702 2^688 211997 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 47:772 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—II....................... 52,306 33,800 7,769 2,654 23,377 15,478 3,028 45,883 41,083 14,047 11,346 15,690 4,747 53 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 IH...................... 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—I......................... 60,119 38,157 7,694 2,674 27,789 18,396 3,566 51,218 45,171 15 179 11,872 18,120 5,931 116 II....................... 61’967 39’, 113 7,678 2’,648 28,787 19,098 3’756 51 ’,793 45'570 15’246 11,918 18,406 6,108 115 Ill...................... 63 779 40,251 7,768 2,657 29^826 19,771 3,757 52,496 46,051 15,367 11,945 18,739 329 116 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 * 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

JUNE 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 ur A e - d g V u A ar - ­ Other 1 Farm 1 Total Total in F s H ur A e - d g V u A ar - ­ Other Farm anteed anteed 1945 ............................................ 976 6,637 5,860 1,394 4,466 766 1961............................................. 6,785 6,233 1,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962............................................. 7,478 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963............................................. 9,172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964..................................... 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965............................................. 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966............................................. 10.217 223 11300 467 7,456 '994 64,609 59,369 12,351 6,201 40,817 5,240 1967............................................. 8,'470 7^633 '757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968............................................. 7', 803 7,031 725 337 5,969 772 70,071 64,268 12,015 5,982 46,271 5,803 1968-—Mar,r,................. 705 593 67 42 484 112 68,035 62,414 12,148 6,113 44,153 5,621 Apr................................... 521 435 40 20 375 86 68,123 62,448 12,103 6,067 44,278 5,675 .................................. 648 583 55 23 505 65 68,339 62,634 12,075 6,047 44,512 5,705 June.................................. 568 519 53 20 446 49 68,508 62,777 12,047 6,022 44,708 5,731 July.................................. 664 612 59 41 512 52 68,708 62,969 12,036 6;046 44,887 5,739 Aug 616 575 71 30 474 41 68,909 63,154 12,029 6,034 45,091 5,755 Sept................................... 542 497 58 25 414 45 69,024 63,248 12,003 6,012 45,233 5,776 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................................... 1 ,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 Feb.................................... 558 497 64 29 404 61 70,355 64,584 11,983 5,973 46,628 5,771 Mar................................... 626 541 53 21 467 85 70,480 64,694 11,947 5,943 46,804 5,786 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 S38 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 FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Period va A n d ce ­ s R m e e p n a ts y­ M d e e m po b s e it r s s’ Period h N o e m w e Home FHA- VA- Con­ Total t S er h m or t 1 te L r o m n g * Total 1 con­ pur­ Total 2 in­ guar­ ven­ struc­ chase sured anteed tional tion 1945...................... 278 213 195 176 19 46 1961...................... 2,882 2,220 2,662 1,447 1,216 1,180 1945............. 1 913 181 1 358 5,376 1 1 9 9 6 6 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 , '6 1 0 1 1 1 4 3^ ’ 2 2 9 9 4 6 4 3 , 1 7 4 8 7 4 9 2 2 1 J8 0 6 0 3 5 1 1 1 ,9 4 2 7 1 4 1 1 , , 1 2 5 1 1 3 1961............. 17,733 5,212 7,317 68,834 4,167 7,152 57,515 1964...................... 5'565 5'025 51325 2,846 2,479 1,199 1 1 1 9 9 9 6 6 6 3 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 5 4 1 , , , 9 1 1 1 5 7 3 3 3 7 6 6 , , 1 6 1 8 3 1 8 5 5 1 1 8 0 0 , , , 6 0 5 5 3 5 5 8 0 1 7 9 0 0 1 8 , , ^ 9 3 7 3 4 0 3 4 4 4 4^ , , 6 4 8 9 7 9 6 6 4 7 6 6^ ^ '0 6 9 1 8 6 0 3 0 6 7 8 9 9 7 , , , 2 7 2 8 5 8 8 6 4 1 1 1 9 9 9 6 6 6 5 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 1 , , , 0 8 5 0 0 2 7 7 4 4 2 41 , , 3 8 0 3 6 7 5 6 6 4 5 6 1 1 ,9 3 9 9 8 3 7 6 5 3 5 31 1 ,0 9 0 7 8 0 4 5 6 2 1 , , 9 9 4 2 2 0 3 1 9 1 1 1 , , , 0 0 4 4 3 3 3 6 2 1965............. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968....................... 2’734 1,861 51259 41867 392 1,382 1 1 1 9 9 9 6 6 6 6 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 0 6 , , , 9 1 9 8 2 2 3 2 4 4 4 3 , , , 9 2 6 4 1 5 3 6 3 1 7 9 1 , , , 8 6 2 2 1 0 5 8 4 1 1 1 2 1 3 1 4 0 , , , 8 4 7 0 2 8 5 7 2 5 5 6 , ^ , 7 2 6 9 6 5 1 9 8 6 6 7 , , , 3 1 0 5 5 1 1 7 2 1 1 1 0 0 1 3 9 7 , , , 0 6 1 0 6 1 1 3 2 1968-—A J M u p n a r e . y . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 4 8 8 5 2 6 1 1 1 7 0 1 5 8 4 4 41 , , 8 5 7 4 8 1 5 9 9 4 4 4 , , , 4 1 0 0 9 2 8 7 6 5 4 5 8 1 2 1 9 2 1 1 1 , . , 2 3 2 9 8 7 3 2 0 1968— J J S A M A u u e u p a n l p g y r e y t . . . . . . . . . . . . . . . . 2 1 1 1 1 1 , , , , , , 9 9 9 1 8 8 9 7 8 5 0 4 5 3 3 9 6 0 4 5 4 4 4 3 1 8 3 0 1 9 2 0 6 0 0 4 1 1 1 1 , , , , 0 1 0 0 9 9 7 3 5 5 4 8 5 8 6 5 0 4 1 1 1 1 1 1 2 2 2 2 2 2 5 6 7 4 5 8 , , , , , , 1 6 4 2 9 3 1 9 7 1 0 0 8 2 3 6 0 2 5 6 6 6 6 6 , , , , , , 9 0 0 1 2 3 6 7 2 7 7 7 1 9 6 7 9 0 6 6 6 6 6 6 , , , , , , 6 5 5 5 6 7 3 2 9 5 5 8 1 2 3 3 9 9 1 1 1 1 1 1 1 1 1 1 1 1 1 2 3 3 4 5 , , , , , , 7 5 2 8 5 1 3 8 2 1 2 7 3 8 8 0 4 9 J S A O N D u e e u c o l p c t g y v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 1 1 1 1 0 3 6 7 9 5 1 5 3 8 4 5 2 1 1 1 1 3 8 8 3 6 5 5 1 8 6 4 0 4 4 5 5 5 5 1 1 1 , 1 , 9 0 9 0 2 0 8 2 9 3 5 4 8 5 7 6 9 0 4 4 4 4 4 4 , , , , , , 5 6 6 5 8 6 6 3 0 4 6 2 1 5 3 3 7 7 4 4 4 4 3 3 5 3 2 0 9 9 3 7 3 7 7 2 1 1 1 1 1 1 , , ^ , , , 2 1 1 3 3 2 5 2 8 7 8 8 1 1 4 5 4 2 O N D o e c v c t. . . . . . . . . . 1 1 1 , , , 9 8 7 8 4 2 6 9 4 4 3 40 9 6 7 2 6 9 8 8 9 6 6 5 8 9 1 1 1 3 2 2 0 9 9 , , , 7 8 1 7 8 4 9 2 7 6 6 6 , , , 4 5 6 5 2 5 9 9 8 6 7 6 , , , 8 0 9 4 1 1 5 2 9 1 1 1 1 1 1 5 6 7 , , , 8 4 1 3 4 1 1 3 2 1969-—J M F a e a n b . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 7 5 2 5 7 0 1 1 1 2 7 7 8 2 9 5 5 5 1 , , 3 3 2 3 5 9 1 7 8 4 4 41 , , 9 9 9 7 4 8 5 0 3 3 3 34 8 5 9 2 8 1 1 1, , , 2 1 1 4 3 1 3 0 0 1 592 348 783 131,404 6,748 7,074117,582 Apr............ 545 113 5,764 5,423 341 1,178 Feb... 1,580 364 767 132,075 6,857 7,129118,089 M Ap a r r. . . * , . 2 1 , , 0 8 7 7 7 0 4 4 4 8 0 6 1,0 8 2 9 5 6 1 13 3 4 2 , , 0 9 3 9 2 2 7 6 , , 1 9 1 7 7 2 7 7, , 2 1 7 9 3 4 1 1 1 1 9 8 , , 6 8 4 2 2 6 2 1 S S e e c c u u r r e e d d o lo r a u n n s s , e a c m ur o e r d t iz lo e a d n s q u m a a rt t e u r r l i y n , g h i a n v 1 in y g e a m r a o tu r r l i e ti s e s s . of more than 1 year but not more than 10 years. no 1 t I s n h c o lu w d n e s s e l p o a a r n a s te f l o y. r repairs, additions and alterations, refinancing, etc., Note.—Federal Home Loan Bank Board data. 2 Beginning with 1958, includes shares pledged against mortgage loans; 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 □ JUNE 1969 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (la billions of dollars) (In billions of dollars) All residential Multifamily * Governmentunderwritten Con­ E pe n r d io o d f Total t F u in i c t n i s i o a a t n n l i ­ s ­ h O ol t d h e e r r s Total t F u in i c t n i s i o a a t n i l n ­ s ­ h O ol t d h e e r r s E pe n r d io o d f Total Total s F u i H n re ­ A d - a g n V u te A a e r - ­ d * ti v o e n n a ­ l 1 1 1 9 9 9 4 4 6 1 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 4 1 . . . 3 2 2 17 1 1 6 4 5 . . . 9 7 7 3 8 9 4 . . . 6 5 4 2 5 5 9 . . . 8 7 0 2 3 0 3 . . . 5 7 6 2 2 8 . . . 3 2 2 1 1 1 9 9 9 6 6 4 3 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 1 8 7 8 2 . . . 6 6 2 6 6 4 9 5 . . . 3 2 9 3 3 4 8 5 . . . 1 3 0 3 3 0 0 . . . 2 9 9 1 1 2 1 1 8 4 6 . . . 3 3 3 1964.............. 231.1 195.4 35.7 33.6 25.1 8.5 1965................ 212.9 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 1 1 9 9 6 6 6 7 ” * . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 8 6 0 4 . . 0 0 2 2 2 3 3 6 . . 7 6 4 4 0 3 . . 3 4 4 4 0 3 . . 3 9 3 3 1 4 . . 5 7 9 8 . . 2 8 1 1 9 9 6 6 8 7 * * . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 5 6 1 . . 1 5 7 8 9 3. . 8 9 4 50 7 , . 6 4 3 3 2 3 . . 5 2 1 1 5 6 6 7 . . 1 6 1968*............. 298.7 251.2 47,5 47.2 37.6 9.6 1966—11......... 219.6 74.7 43.7 31.0 145.0 1966—IP.. . . 258.7 220.1 38.6 39.1 30.5 8.6 Ill........ 221.9 75.4 44.4 31.0 146.5 IIP. . . 261.6 222.1 39.5 39.7 31.0 8.7 IV........ 223.6 76.1 44.8 31.3 147.6 IV*... 264.0 223.7 40.3 40.3 31.5 8.8 1967—P........ 224.9 76.4 45.2 31.2 148.4 1967—1*........ 265.9 225.0 40.9 41.0 32.2 8.8 II*....... 227.8 77.2 45.7 31.5 150.6 II*.... 269.7 228.3 41.4 4t.9 32.9 8.9 III*.... 232.0 78,3 46.6 31.7 153.7 III*.. . 274.8 232.5 42.3 42.8 33.8 9.0 IV’.... 236.1 79.9 47.4 32.5 156.1 IIP... 280,0 236.6 43.4 43.9 34.7 9.2 1968—1*........ 239.3 81.0 48.1 32.9 158.3 1968—1*........ 283.6 239.0 44.6 44.4 35.1 9.2 IP....... 243.3 82.1 48.7 33.4 161.2 II*.... 288.7 242.8 45.9 45.4 36.0 9.4 IIP.... 247.3 83.2 49.6 33.6 164.1 IIP... 293.4 246.6 46.8 46.2 36.7 9.4 IV*.... 251.5 83.8 50.6 33.2 167.6 IV*.... 298.7 251.2 47.5 47.2 37.6 9.6 i Includes outstanding amount of VA vendee 1 Structures of 5 or more units. accounts held by private investors under repurchase 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 fore­ Period Mortgages Prop­ Mortgages End of period 90 days closure Pro­ erty Total 30 days 60 days or more Total h N om ew e s h is o E t m i x n ­ e g s jects* m p i r e m o n v t ­ e s ­ 2 Totals h N om ew es h is o E t m i x n ­ e g s 1963............... 3.30 2.32 .60 .38 .34 1964............... 3.21 2.35 .55 .31 .38 1 1 1 1 9 9 9 9 6 6 4 6 4 3 5 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7 8 , , , 1 6 2 6 3 8 1 6 0 9 6 5 1 1 1 , , , 7 6 6 2 0 0 6 5 5 8 4 7 4 5 3 , , , 9 7 9 2 6 0 6 1 5 5 0 7 8 5 8 9 9 4 2 1 5 3 0 6 8 6 1 6 3 0 7 3 1 4 4 2 2 3 , , . 8 6 0 1 4 4 5 9 5 6 2 2 1 1, . 0 2 8 2 7 7 3 2 6 1 1 1 , , , 8 7 7 2 7 7 1 0 4 1 1 1 1 9 9 9 9 6 6 6 6 5 7 8 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 . . . .1 2 4 4 7 9 0 7 2 2 2 2 . . . . 4 6 4 5 3 6 0 4 . . . .5 5 5 5 1 5 4 4 . . . . 2 3 2 3 3 7 2 4 . . . . 3 2 3 4 2 6 6 0 1 1 1 9 9 9 6 6 6 7 6 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 8 , . , 1 3 27 5 2 5 0 0 1 1 1 , . , 5 3 7 7 6 2 2 9 9 4 4 4 , , , 5 9 3 1 2 6 6 6 4 1,1 6 5 2 4 8 3 2 3 6 6 6 2 4 5 1 3 6 2 3 3 , , , 6 4 7 0 0 7 5 0 4 1 1 , , 4 1 9 4 3 8 3 0 0 2 2 1 , , , 3 2 6 4 1 5 3 8 9 1965— I 1 I I V 1 I .. . . . . . . . . . .. . . . 3 3 3 . . . 2 2 0 0 0 9 2 2 2 . . . 3 4 1 0 8 0 . . .5 5 5 5 2 6 . . . 3 3 3 0 4 4 . . . 3 3 4 8 8 0 1968— J J M A A u u u p a n ly g r y e . . . . . . . . 6 6 7 7 6 1 5 8 7 0 2 2 3 6 4 1 1 1 1 1 2 3 2 3 3 1 1 3 5 5 3 4 4 3 37 3 7 6 4 1 8 4 0 0 1 1 3 7 8 9 2 1 2 0 2 4 5 6 5 6 6 3 8 3 0 6 2 2 2 3 34 8 6 2 4 1 5 0 7 i 1 1 1 1 9 1 1 2 2 8 2 0 0 2 2 2 1 1 1 0 1 4 6 5 3 7 8 8 6 1966—1 u I I I V .. I . . . . . . . . . . . . . . . . . . . . . . . . 2 3 3 3 . . . . 9 0 0 4 5 2 9 0 2 2 2 2 . . . . 1 2 1 5 3 5 6 4 . . . . 5 5 4 5 5 2 9 4 . . . . 3 3 3 3 0 2 4 2 . . . . 3 3 3 3 8 8 6 6 S O N D e e o c p t c v , t , . . . . . . . 7 7 7 8 2 4 0 6 7 9 9 2 1 1 1 1 3 5 1 2 5 8 7 6 4 5 4 4 5 4 7 0 3 9 3 9 1 1 9 7 1 0 3 8 1 8 6 6 4 5 1 7 9 8 3 3 3 3 2 6 7 6 2 7 5 0 i 1 1 1 l 2 3 3 l 8 2 6 2 2 2 2 1 3 2 3 1 7 9 9 1967—I I I IV . I I . . I . . . . .. . . . . . . . . . . . . . 2 3 3 3 . . . . 8 1 0 4 5 5 7 4 2 2 2 2 . . . . 1 1 3 6 7 4 6 6 . . . . 5 4 5 5 6 5 2 4 . . . . 3 2 2 2 1 7 6 7 . . . . 3 3 3 3 1 8 2 4 1969— A J F M a e p a n b r r . , . . . . . . . 7 6 6 6 8 6 4 1 1 2 2 4 1 1 1 H 1 3 0 O 3 4 6 4 4 3 38 2 8 7 1 8 8 4 1 1 0 8 8 0 5 2 0 0 4 5 5 3 8 0 7 9 3 2 3 3 0 6 9 2 1 9 9 6 1 1 1 11 4 2 1 1 5 2 4 2 2 1 1 2 9 0 8 1 5 7 2 1968—I I I IV I . I I . . . . . . .. . . . . . . . . . . . . . 2 2 2 3 . . . . 9 1 8 8 3 7 4 9 2 2 2 2 . . . . 1 2 4 2 1 3 3 3 . . . . 4 5 4 4 1 9 8 4 . . . .2 2 2 2 3 2 2 4 . . . . 3 2 2 2 2 8 6 6 > Monthly figures do not reflect mortgage amendments included in annual 1969—1.......... 2.77 2.04 .49 .24 .26 totals. 1 s N In o cl t u o d r e d s i n a a s ri m ly a s ll e a cu m re o d u n b t y o m f o a r l t t g e a r g a e ti s o . n and repair loans, not shown separ­ rep N o o rt t s e .— on M 1 o - r tg to a g 4 e - fa B m a i n ly k e F rs H A A - s in s s o u c r ia e t d io , n VA o - f g u A a m ra e n r t i e c e a d , d a a t n a d f c ro o m n­ ately; only such loans in amounts of more than $1,000 need be secured. ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured savings and loan associations. 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

JUNE 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 c P ha u s r e ­ s Sales bursed sured anteed ch P a u s r e ­ s Sales bursed 1965........................ 2,212 1,540 671 156 154 332 1965.......................... 2,319 1,864 656 757 47 462 1966.......................... 2,667 2,062 604 620 491 1966.......................... 4,396 3,345 1,031 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—Apr................ 3,721 3.087 633 103 1,126 (968—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 66 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 1,130 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—Jan................ 4,255 3,607 648 54 1,297 1969—jan................. 7,334 5,227 2,107 193 1,283 Feb................ 4,301 3,657 644 63 1,296 Feb................ 7,510 5,345 2,165 201 1,406 Mar............... 4,328 3,687 641 44 1,311 7,689 5,467 2,222 205 1,621 Apr................ 4,357 3,721 636 50 .....1..,.3..1..2 Apr................ 7,851 5,576 2,276 192 1,887 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 c a o r 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...................... 5.81 5.95 5.83 5.47 1966....................... 6.25 6.41 6.40 6.38 In millions of dollars In percent 1967....................... 6.46 6.52 6.53 6.55 1968...................... 6.97 7.03 7.12 7,21 1969 1068—.Ma v 6.84 6.95 7.15 June........... 7.03 7.12 7.25 7.52 Mar. 3......... 118.9 90.5 11.5 38.1 41.0 8.13 8.17 8.02 July........... 7.17 7.23 7.30 7.42 10......... 127.1 84.7 7.5 37.0 40.2 8.14 8.13 8.00 Aug............ 7.24 7.26 7.30 7.35 17......... 132.7 88.5 3.1 45.6 39.8 8.09 8.08 7.95 Sept............ 7.24 7.25 7.30 7.28 24...... 220.9 84.1 3.5 47.4 33.3 8.10 8.09 7.96 Oct............. 7.23 7.22 7.25 7.29 Nov............ 7.21 7.21 7.30 7.36 182.9 93.1 4.6 47.2 41.4 8.10 8.11 7.98 Dec............ 7.23 7.23 7.40 7.50 * 7......... 175.9 102.5 8.2 57.8 36.5 8.12 8.13 8.01 14 144.7 101.1 7.9 52.3 40.9 8.10 8.10 7.98 1969-—Jan............. 7.30 7.32 7.55 21...... 128.1 100.9 4.6 59.8 36.5 8.05 8.05 7.93 Feb............ 7.39 7.42 7.60 7.99 28......... 157.7 84.1 4.8 58.7 20.5 7.94 7.94 7.86 Mar ...... 7.47 7.49 7.65 8.05 Apr.. ”7.62 *7.60 7.75 8.06 170.8 84.4 6.7 58.2 19.5 7.89 7.90 7.83 May........... 7.73 8.06 12......... 210.4 85.0 9.3 55.9 19.8 7.87 7.89 7.81 19......... 236.2 83.3 13.8 51.0 18.5 7.87 7.88 7.81 26...... 263.0 96.1 12.3 67.8 16.0 7.89 7.91 7.84 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices 304.6 103.0 15.3 65.5 22.1 7.92 7.95 7.86 on prevailing local conditions as of the first of the succeeding 9 291.6 100.2 21.3 57.7 21.2 7.99 8.01 7.92 month. Yields on FHA-insured mortgages are derived from 16.. (100.0) weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Gaps in the data Note.—Implicit secondary market yields are gross—before deduction of 50are due to periods of adjustment to changes in maximum per­ basis-point fee paid for mortgage servicing. They reflect the average accepted bid missible contract interest rates. The FHA series on average price for Government-underwritten mortgages after adjustment by Federal Reserve contract interest rates on conventional first mortgages in primary to allow for FNMA commitment fees and FNMA stock purchase and holding markets are unweighted and are rounded to the nearest 5 basis requirements, assuming a prepayment period of 15 years for 30-year loans. Com­ points. The FHLBB effective rate series reflects fees and charges mitments for 12-18 months are for new homes only. , as well as contract rates (as shown in the table on conventional Total accepted shown in parenthesis for most recent week indicates FNMA first mortgage terms, p. A-33) and an assumed prepayment at announced limit before the “auction” date. end of 10 years. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 52 CONSUMER CREDIT □ JUNE 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 1 620 298 1,088 2,719 787 1,414 518 1941........................................ 9372 6,085 2 458 1,929 376 1322 3,087 845 1345 597 1945........................................ 5,665 2,462 455 816 182 1,009 3,263 746 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 14J77 3*437 15,618 16 253 6,101 5 303 4,249 1964........................................ 80 268 62^692 24,934 16 333 3377 17348 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 22J87 20 004 7*972 61686 5 346 1967........................................ 102,132 80 926 30 724 22 395 3,789 24,018 21 306 8 428 6,968 5.810 1968........................................ 113’191 89 890 34*i30 24 899 3*925 26 936 23*301 9 138 7,755 6:408 A nr....................1..0.2.. ..2..5.7 81,328 31 331 21,841 3,697 24,459 20,929 8 636 6,026 6,267 N^ay............................ 103,411 82,312 31*818 22:011 3,746 24’737 21 099 8 663 6,276 6J6O June............................ 1041620 83*433 32*364 22^248 3369 25*052 21 J87 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’t080 Aug.............................. 107;090 85:684 33 325 22377 3357 25 325 21J 406 8 774 6,574 6,058 Sept............................. 107:636 86,184 33336 22388 3381 25,979 21 352 8,868 6,550 6,034 Oct........................ 108,643 87,058 33:698 23,248 3,910 26,202 21 385 8 943 6,692 5,950 Nov............................. 110,035 87,953 33,925 23368 3,931 26,429 22,082 9,024 6,964 6,094 Dec.............................. 113,191 89390 34330 24,899 3,925 26,936 23361 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.............................. 111,569 89,380 34*053 24304 3375 27348 22,189 9 050 61403 6336 Mar............................. 111.950 89,672 34’,262 24*306 3,874 27,230 22,278 9,139 6’,340 6399 Apr.............................. 113,231 90,663 34,733 24,399 3,903 27,628 22,568 9,216 6,557 6,795 foldings 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^ $ec- 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 finance1 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 1,776 745 300 102 629 686 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-—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 Mar............................. 89,672 78,006 37,257 18,253 10,294 8,927 3,275 11,666 320 11,346 Apr.............................. 90,663 79,062 37,854 18,418 10,508 9,008 3,274 11,601 325 11,276 1 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

JUNE 1969 □ CONSUMER CREDIT A 53 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair paper 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 4,950 1963............................... 12,630 7^922 21699 214 1,795 1964........................ 25,094 81691 4,734 3,670 2,457 5,542 1964............................... 13,605 8'285 3,022 207 2,091 1965........................ 28,962 10,209 5,659 4,166 2,571 6,357 1965.............................. 15,279 9,068 3,556 185 2,470 1966........................ 311319 11,024 5,956 4,681 2,647 7,011 1966............................... 16,697 9^572 41256 151 2,718 1967........................ 32,700 101927 6,267 5,126 2,629 7,751 1967.............................. 16,838 9,252 4,518 114 2J954 1968........................ 36,952 12,213 7,105 6,060 2,719 8,855 1968............................... 18’,219 9'986 4’,849 74 3’,310 1968—Apr.............. 33,562 11,161 6,537 5,278 2,562 8,024 1968—Apr..................... 16,868 9,292 4,492 93 2,991 Kfay........ 341079 11,351 6,658 5,358 2,585 8,127 17,010 9 388 41528 88 3,006 June............. 341585 11,545 6,772 5,443 2,608 8,217 June................... 17,239 9,544 41582 84 3,029 July............. 35,103 11,744 6; 863 5,559 2,639 8,298 July..................... 17,448 9^709 41596 82 061 Aug............. 351672 11,953 6,924 5,668 2,675 8,452 Aug..................... 17,670 9,812 41663 73 3,122 Sept............. 35,923 11,980 6,916 5^743 2,697 8,587 Sept.................... 17,680 9^758 4,695 69 3,158 Oct.............. 36,352 12,143 7,000 5,812 2,716 8,681 Oct..................... 17,823 9,823 4,737 74 3,189 Nov............. 361560 12,190 7,063 51855 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 371257 12,224 7,168 6,188 2,670 9^007 Mar..................... 18,253 9,988 41868 70 3,327 Apr.............. 37,854 12,388 7,273 6^299 2,690 9,204 Apr..................... 18,418 10,095 4,896 70 3,357 Seo Note to first table on previous page. See Note to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal paper goods ization loans 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 . . 2,719 625 162 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 10,215 1945 .... 31203 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-—Apr..................... 20,170 4,048 1,636 1,042 13,444 1966............... 20,004 6,946 L ,026 5',812 874 5,346 May................... 20,471 4,123 1 ,671 1,073 13,604 1967............... 21,206 7,340 11088 5,939 1,029 5,810 June................... 20,786 4,200 1,703 1,077 131806 1968............... 23,301 7,975 1,163 6,450 1,305 6,408 July.................... 21,022 4,250 1,730 1,087 13,955 Aug.. ................. 21,348 4^323 1,765 1,109 14,151 1968—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 1,128 14,787 Nov.... 22,082 7,857 1,167 5,670 1,294 6,094 Mar,........... 22,496 4,562 1,904 1,134 14,896 Dec.... 23,301 7,975 1,163 6,450 1,305 6,408 Apr,................... 22,790 4,652 1,928 1,143 15^067 1969—Jan.... 22,625 7,878 1,160 5,763 1,334 6,490 Feb.... 22,189 7,877 1,173 5,087 1,316 6,736 Note.—Institutions represented are consumer finance companies, credit Mar.... 22,278 7,961 1,178 5,037 1,303 6,799 unions, industrial loan companies, mutual savings banks, savings and Apr.... 22,568 8,040 1,176 5,237 1,320 6,795 loan assns., and other lending institutions holding consumer instalment credit. See also Note to first table on previous page. 1 Service station and miscellaneous creditcard 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 □ JUNE 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.1 N.S.A. S.A.‘ N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1962 56,191 19,694 15,701 2,084 18,710 1963 63,591 22,t26 17,920 2,186 21,359 1964 70,670 24,046 20,821 2,225 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 31,424 30,593 2,268 32,768 1968-—Apr.............................. 7,863 8,219 2,509 2,764 2,597 2,533 189 189 2,568 2,733 May............................ 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 2,531 185 223 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 Mar............................. 8,381 8,132 2,730 2,750 2,625 2,423 198 179 2,828 2,780 Apr.............................. 8,720 9,024 2,772 3,023 2,763 2,668 219 216 2,966 3,117 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 1966. 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--Apr.............................. 7,222 7,365 2,297 2,375 2,340 2,336 176 180 2,409 2,474 May............................ 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 Mar............................. 7,735 7,840 2,501 2,541 2,461 2,521 180 180 2,593 2,598 Apr.............................. 7,960 8,033 2,519 2,552 2,569 2,575 185 187 2,687 2,719 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--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 Mar............................. 646 292 229 209 164 -98 18 — 1 235 182 Apr.............................. 760 991 253 471 194 93 34 29 279 398 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 Notb.—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 Dec. 1968. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 S.A.i N.S.A. S.A/ N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i 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.. 13,310 1965........................................ 78,586 29,528 13,722 20,906 14,430 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—Apr.............................. 7,863 8,219 2,910 3,194 1,290 1,355 2,021 2,099 1,642 1,571 May............................ 8,033 8,377 2,980 3,233 1,332 1,369 2,157 2,241 1,564 1,534 June............................ 8,003 8,115 2,938 3,030 1,302 1,358 2,177 2,231 1,586 1,496 July............................. 8,247 8,738 3,018 3,343 1,366 1,495 2,190 2,307 1,673 1,593 Aug..................... 8,187 8,502 3,066 3,245 1,289 1,329 2,248 2,344 1,584 1,584 Sept............................. 8,416 7,682 3,284 2,953 1,349 1,217 2,236 2,043 1,547 1,469 Oct.............................. 8,533 8,687 3,252 3,306 1,367 1,437 2,309 2,246 1,605 1,698 Nov............................. 8,288 8,166 3,111 2,877 1,411 1,368 2,139 2,139 1,627 1,782 Dec.............................. 8,277 9,568 3,139 3,094 1,362 1,535 2,208 2,571 1,568 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 Mar............................. 8,381 8,132 3,199 3,155 1,429 1,359 2,239 2,219 1,514 1,399 Apr............................. 8,720 9,024 3,318 3,585 1,405 1,463 2,378 2,447 1 ,619 1,529 Repayments 1962........................................ 51 360 18.468 10,200 13 455 9.237 1963........................................ 56,825 20,326 id;927 15:676 10,502 1964................................ 63,470 22,971 11,638 16,764 12.097 1965........................................ 69,957 25,663 12,048 18,813 11,433 1966................................ 76,120 27,716 12;860 20,074 li1 ,470 1967........................................ 81,306 29,469 13,692 21,330 145 ,815 1968............. 88,089 32,080 14,528 23343 11,038 1968-—Apr*.. • ...................... 7,222 7,365 2,643 2,714 1 174 1,246 1,887 1,928 1,518 .477 May............................ 7,301 7,393 2,653 2,716 11222 1,227 1,939 1,940 1,487 ,510 June............................ 7,287 6,994 2,666 2,524 1,164 1,129 1,957 1,916 1,500 ,425 July............................. 7,390 7,723 2,662 2,825 1,258 1,286 1,942 2,071 1,528 .541 Aug............................. 7 253 2,610 2,676 1 156 1,107 2,023 2,018 1,464 ,465 Sept............................ 7,701 71182 2,849 2,702 1^323 1,207 2,026 1,880 1,503 ,393 Oct.............................. 7,586 7,813 2,764 2,877 1,230 1,294 2,052 2,061 1,540 ,581 Nov............................. 7,454 7 271 2,769 2,669 1.234 1,231 1,950 1,909 1,481 ,462 Dec............................. 7,502 7j63i 2,761 2,702 1^215 1,276 2,019 2,211 1,507 442 1969-—Jan.............................. 7,730 7,955 2,812 2,855 1,282 1,271 2,082 2,083 1,554 ,746 Feb.............................. 7,616 7,083 2,869 2,677 1,231 1,148 2,066 1,850 1,450 ,408 Mar................. 7,735 7,840 2,928 2,954 1,287 1,325 2,011 2,025 1,509 ,536 Apr............................. 7,960 8,033 2,967 2,988 1,236 1,298 2,140 2,153 1,617 .594 Net change in credit outstancing 2 1962........................................ 4,831 1,997 1,078 1,332 422 1963. 6,766 3,018 1,225 C698 825 1964. 7,200 3,065 975 2,033 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--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 Mar............................. 646 292 271 201 142 34 228 194 5 -137 Apr............................. 760 991 351 597 169 165 238 294 2 -65 1 Includes adjustments for differences in trading days. tween extensions and repayments for some particular holders do 9 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. □ JUNE 1969 MARKET GROUPINGS (1957-59=100) 1957-59 1968 1969 pro­ 1968 Grouping por­ aver­ tion age’ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb,*- Mar,r Apr.r Total index.................................... 100.00 165.4 162.5 164.2 165.8 166.0 164.6 165.1 166.0 167.5 168.7 169.1 170.1 17! .3 171 8 Final products, total. ,«................... 47.35 165.0 161.7 163.0 165.2 164.7 164.8 163.7 167.G 167.9 168.1 168.2 169.3 170.8 170.0 Consumer goods........................... 32.31 156.8 153.5 154.6 156,8 156.4 156.8 157.3 159.6 159.2 160.1 161.0 161.7 162.8 161.7 Equipment, including defense.... 15.04 182.8 179.4 181.1 183.2 182.6 181.9 183.6 183,0 186.5 185.3 183.5 185.5 187.8 188.4 Materials........................................... 52.65 165.7 163,1 165.2 166.7 167.4 164.2 165.1 165.7 167.6 169.3 169.6 170.8 172.1 173.4 Consumer goods Automotive products.......................... 3.21 174.4 163.7 178.1 180.7 180.4 177.1 175.6 178.9 181.2 177,8 176.2 174. 7 176.3 166.3 Autos................................................. 1.82 174.8 166.8 182.3 183.5 183.7 182.4 177.4 180.3 180.6 174.5 170,6 165.0 165.0 149.6 Auto parts and allied products........ 1.39 173.9 171.2 172.6 177,1 176.1 170.2 173,2 177.0 182.1 182.2 183.5 187.6 191.1 188,2 Home goods and apparel................... 10.00 156.4 153,7 149.9 155.7 154,1 155.8 156,3 158.1 158.6 157.6 160.8 160.5 162.7 163.0 Home goods...................................... 4.59 175.5 170.1 170,4 173.4 171,5 174.6 175.9 176.7 178.3 180.0 184.3 183.0 186.1 186.8 Appliances, TV, and radios.......... 1.81 168.5 156.8 156.7 161.6 161.8 168,0 170,4 171.8 171.9 173.2 177.7 179.1 182.6 182.6 Appliances................................. 1.33 174.2 158.9 158.5 165.2 166.5 172.8 175.5 175.1 177.2 181.7 186,9 187.3 189.0 190.9 TV and home radios................. .47 152.4 151.0 151.7 151.3 148.5 154.5 156.2 162.5 156.9 149.4 151.5 156.0 164.4 158.9 Furniture and rugs........................ 1.26 173.7 170.1 174.6 174.8 174.5 174.0 175.5 174,2 177.0 180.2 184.3 181.2 182.0 184.1 Miscellaneous home goods........... 1.52 185.2 185.9 183,1 186.2 180.5 182.9 182.8 184,7 187.0 187,9 192,2 189.0 193.7 194.2 Apparel, knit goods, and shoes........ 5.41 139.5 139,9 139.5 140.8 139.4 139.8 139.6 142.3 142.0 138.7 140,8 141.4 142.8 Consumer staples........,.................... 19.10 154.0 150.7 151.2 153.4 153.5 153.9 154.9 157.1 135.8 158.4 158.6 160.2 160.6 160.2 Processed foods................................ 8.43 132.6 131.2 131.0 132.2 132.9 132.5 132.5 133,2 132.0 134.7 134.8 136.7 136.3 135.6 Beverages and tobacco..................... 2.43 141 .9 139,4 136.6 142.9 139.6 144.7 145.2 145.9 142.3 145.4 144.6 147.5 150.9 Drugs, soap, and toiletries............... 2.97 193.3 186.1 190.0 192.0 192.6 190.6 193.6 199.8 200.4 201.4 203.7 203.7 205.0 207.8 Newspapers' magazines, and books. 1.47 143,3 142.1 145.3 143.6 144.2 143.6 140.7 145.8 146.0 147,1 146.3 145.7 143,3 145.9 Consumer fuel and lighting.............. 3.67 182.9 177.3 177.0 180,8 180.8 182,6 186,0 188.7 186.1 190.2 190.0 192.0 193.2 Fuel oil and gasoline,. .1............. 1.20 138.9 136.3 140.2 142.8 140.3 138,3 142.6 141.4 140.6 141.3 129,9 139.6 141.6 142.1 Residential utilities........................ 2.46 204.4 197.2 194.9 199,3 200.6 204.2 207,2 211.8 208.3 214.0 219.3 217.6 218.3 Electricity............,.................... 1.72 223.3 212,5 209.0 218.0 219.0 224.0 228.0 233.6 228.0 235.7 242.8 239.9 240.6 Gas ..................... ........ .74 171.4 Equipment Business equipment............................ 11.63 184.8 180.9 182.5 184.3 183.4 182.4 185.2 186.8 191.2 191.1 191.4 191.9 192.9 193.8 Industrial equipment........................ 6.85 168.1 165.9 165.8 168,0 167.5 164.7 167.8 170.2 174,0 174.9 175.9 175.7 176.7 178. 1 Commercial equipment............ 2.42 205.3 204.4 203.6 204.6 202.4 204.6 205.9 207.3 208,7 205.3 209,9 214.3 217.3 220.1 Freight and passenger equipment... 1.76 234.5 220.8 231.5 234.0 234.3 233.2 235.6 234,3 247.4 247.2 245.5 244.4 242.3 239,7 Farm equipment............................... .61 146.1 140.3 145.1 144.2 139.6 145,8 152,9 155.3 152.4 134.0 136.1 133.0 135.6 Defense equipment........ ........... 3.41 Materials Durable goods materials.................... 26.73 158.0 157,1 159.4 160.4 159.8 153.3 153.3 155.4 157.6 159.7 161.2 162.6 164.0 165.8 Consumer durable............................ 3.43 164.5 154.6 163.0 166.2 167.7 153.5 166.1 166.5 169,6 161.0 162,2 167.7 163.2 159.5 Equipment........................................ 7.84 185.2 181.9 183.6 184.8 185.8 185,3 185,1 184.7 187.7 187.5 187,4 189.3 190.7 190.7 Construction...................................... 9.17 145.9 145.3 145.6 143.7 143.3 145.5 146.3 148.3 152.2 153.5 154.2 154.5 154.7 Metal materials n.e.c.............. 6.29 137.9 144,5 145.0 143.3 146.6 127.4 122. 3 126,6 131.8 140.5 144.6 150.2 153.3 152.6 Nondurable materials........................ 23.92 173.7 169.3 171.2 173.9 175.3 175.5 177.2 176.4 177.9 179.2 178.3 179.2 180.5 181.2 Business supplies............................... 9.11 157.5 152,0 154.5 159.0 157.9 158.4 161.1 162.3 161,7 163.2 164.2 164.4 166.0 164.3 Containers..................................... 3.03 157 0 150.9 155.6 158.9 156.0 154.2 163.4 167.4 161.5 164.8 167.4 168.1 169.3 166.3 General business supplies............. 6.07 157,8 152.6 154.0 159.0 158.8 160.5 160,0 159,8 161.8 162.4 162.6 162.5 164.3 163.3 Nondurable materials n.e.c............... 7.40 221.8 214,9 216.4 218.5 223.8 223.6 227.3 228,2 230.3 233,6 229.3 231.6 232.4 232.3 Business fuel and power................... 9.41 151.6 150,2 151.7 153.2 154.1 154.3 153,3 149.3 152.5 151.9 151.8 152.3 153.8 157.3 Mineral fuels................................. 6.07 132.8 132,6 133.7 136.4 136.9 136.6 134.1 126,0 131.4 130.0 127.8 127.7 129.9 134.3 Nonresidentia! utilities ................ 2.86 199.3 194,6 197,0 196.7 198,2 200.3 202.8 206,3 205.7 206.7 211.5 212.5 212.6 Electricity........................... 2.32 202.4 199,2 202.0 198.9 200.2 202.2 204,8 208.6 207.1 208.1 213,7 214.8 214.7 General industrial . . .. 1.03 197.5 195,4 197.4 193.7 195.1 197.0 199.3 203,6 202.0 204.2 206,2 209.2 208.3 Commercial and other .. . . 1.21 216.7 212,1 215.7 213.0 214.8 216.9 220,0 223.6 222.0 222.2 231.2 230.7 231.2 ..................... . .54 171.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 175.0 169.5 173.6 176.4 175.2 175.6 175.8 177.6 179.5 179.1 181.0 179.6 182.1 176.4 Apparel and staples.................. 24.51 150.8 148.3 148.6 150.6 150,4 150.7 151.5 153.9 152.8 154.1 154.7 156.0 156.7 For notes see page A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 □ INDUSTRIAL PRODUCTION: S.A. A 57 INDUSTRY GROUPINGS (1957-59 = 100) Grouping 19 p p 5 o r 7 o r - ­ ­ 59 a a 1 v g 9 e e 6 s r 8 ­ 1968 1969 tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr.r Total index....................... 100.00 165 4 162 5 164 2 165.8 166 0 164.6 165 1 166 0 167.5 168 7 169.1 170.1 171 3 171 8 Manufacturing, total.......................... 86.45 166 8 163.7 165.8 167.3 167,4 165.7 166,3 167.8 169.1 170.2 170.2 171.8 173 0 173.2 Durable.................................... 48.07 169 9 167 2 169.8 171 0 170 8 167 8 168 7 169 3 171 3 172 4 173.0 174.5 175 8 176 0 Nondurable.................................. 38,38 163 0 159 5 160.8 162 7 163 0 163 0 163,3 165 9 166 3 167 4 166.7 168.3 169 5 169*8 Mining............................................... 8.23 126 4 127 1 126.9 129 2 130 0 129 4 127.0 120.7 126 4 127 4 125.8 124.8 126 5 128 9 Utilities. ...............................,.......... 5,32 201.6 196.5 196.1 197.9 199.3 202.1 204.8 208.9 206.9 210J 215.1 214.9 215^3 214^6 Durable manufactures Primary and fabricated metals.......... 12,32 150.7 151.2 155.7 156.2 154.7 141.8 141.1 144.5 148.6 152.9 155.6 158.4 160 4 161.4 Primary metals.................................. 6.95 137 3 143 3 148 5 148 6 145 8 122 8 120.6 123.1 129 3 135 4 139.5 143 6 146 3 147 8 Iron 'and steel.................. 5.45 13! 0 134.1 146 4 148 4 146 6 112 9 107.3 108 1 115*8 124 6 126.8 133 7 139 0 i4i 7 Nonferrous metals and products.. 1,50 160.1 145.5 150^4 150.4 153.6 153.9 166:2 174.0 173^8 180.7 179.6 183.4 187.4 180.5 Fabricated metal products............... 5.37 168.1 161.4 165.0 166.1 166 2 166 3 167.6 172.2 173 5 175 6 176.4 177.6 178 6 178 9 Structural metal parts................... 2.86 162.3 156.9 159.8 161.8 159 7 159.1 161.1 165.1 168 3 170 3 i70.1 174.5 175 8 174.4 Machinery and related products........ 27.98 183.9 179.2 181.4 183.5 184.0 184.4 185,6 185.0 186.2 185,6 185.2 186.3 187.8 187.3 Machinery,...................... 14.80 184.4 179 4 179.9 181.7 182 7 183 8 186.4 186.1 187 4 188 6 191.8 192.7 194 5 194 6 Nonelectrical machinery............... 8.43 181.3 176.6 176.9 178 8 179 8 179 1 182.6 183.7 184 4 185 3 188.3 189.6 190*2 190.6 Electrical machinery...................... 6.37 188.6 182.8 184,2 185.5 186 5 190 1 191.4 189.3 1914 193 0 196.4 196.9 200 1 200.0 Transportation equipment................ 10.19 179.6 175 3 180^4 182 6 183 2 181 7 180.5 180 4 180 2 176 4 171.2 173.1 174 1 172 5 Motor vehicles and parts.............. 4.68 171.6 164.8 173.6 174.2 174 3 175 4 173.5 177.0 177 7 172 3 167.3 167.7 167 6 161.4 Aircraft and other equipment.... 5.26 185.1 183.5 185.4 188.6 189.3 185.7 184.7 181.0 179.6 177:0 170.9 174.1 176.0 178.7 Instruments and related products.,. 1.71 184.2 181.4 181.2 181.3 179.2 182,6 184.3 185.8 188.5 189.7 191.6 190.4 192.8 195,4 Ordnance and accessories................. 1.28 Clay, glass, and lumber..................... 4.72 137.2 138 0 137,7 137.1 136 2 135 5 138 8 139.9 141 5 144 3 143.8 145.6 144 5 145 4 Clayi glass^ and stone products........ 2.99 146.2 146.1 145.4 145.1 145^2 147.5 150‘0 151.8 150.4 151:2 156.2 156.5 152:4 i5:<7 Lumber and products....................... 1.73 121.7 123.9 122.7 123 4 120 6 114 7 119 4 119.4 126 1 132 3 122.5 126.7 130 8 127 6 Furniture and miscellaneous.............. 3.05 169.9 166.5 169.8 169.5 169 5 170 1 170.9 171.3 172.2 174 2 176.6 175.7 176 5 178.4 Furniture and fixtures...................... 1.54 178 3 174 1 178 9 178 0 177 8 178 6 179 7 180 4 181 7 182 9 186.8 186 5 187 0 188 9 Miscellaneous manufactures............. 1.51 161.3 158.8 160.6 160.9 161.1 16114 162:0 162.1 162.5 165:3 166.2 164.7 165.7 167^6 Nondurable manufactures Textiles, apparel, and leather............ 7.60 145.3 142.9 144,1 145.2 144 2 144.1 144.8 146.8 147 5 145 0 143.6 142.6 144 4 145.6 Textile mill products......................... 2.90 151 5 146 3 147.2 148 8 150 9 151 4 152 0 153 3 155 1 153 5 152.9 152.0 152'5 153.0 Apparel products.............................. 3.59 149.9 148.9 149.6 151.4 150 4 149 0 149.9 152.1 152 5 149 2 148.1 147.9 150^0 Leather and products........................ 1.11 111.3 114.6 118 0 115 8 107 0 109 5 109.3 113 0 111 7 109 2 105.0 101.3 105 6 Paper and printing............................. 8.17 155 6 151 6 154 5 155 2 155 6 156 5 156,8 157.7 159 8 159 7 160.2 161.2 162.0 161.1 Paper and products.......................... 3.43 163 9 159 5 161 1 162 9 164* 1 164* I 166.1 166 7 170 1 169 9 171.1 173.9 174'5 172.9 Printing and publishing.................... 4.74 149 6 145.8 149.8 149.6 149 5 151 I 150.0 151.2 152 3 152'3 152,4 152.1 152*9 152.5 Newspapers.................................... 1.53 136 1 130 8 134 4 134 7 134 7 137 7 140 9 138 4 140 8 139 5 141.2 141.7 141 3 137.1 Chemicals, petroleum, and rubber.... 11.54 207,] 200.9 203.1 206,6 208,2 207.6 207,9 212.8 213.6 216,8 214.1 218.0 219.7 221.3 Chemicals and products................... 7.58 221 3 215.2 216 6 219 3 222.4 221 0 222.4 227 8 228 7 231 8 231.3 234.4 235 7 237.6 Industrial chemicals...................... 3.84 261 0 256.2 255 5 258 0 264 4 262 7 263.2 268 2 268 0 275 0 273.4 276.7 278.7 Petroleum products.......................... 1.97 139 8 137.3 139 9 140 6 139'5 140 7 141.9 142 2 141 4 141'2 131.0 140.2 142'7 142.6 Rubber and plastics products.......... 1.99 219 7 209.4 214.3 218 0 222 4 223 1 223,4 225.8 227 5 234'6 230.8 232,8 235.0 Foods, beverages, and tobacco........... 11.07 134 6 133.6 132,9 134 5 134 2 134 4 134.5 136.1 134 9 137.0 138.0 139.5 139.8 139.1 Foods and beverages........................ 10.25 135 7 135 3 134 0 135 5 135 1 135 3 135.4 137 3 136 1 138 8 139.4 140.9 141 5 140.8 Food manufactures....................... 8,64 132 7 131.9 131.9 132 2 132 7 1315 13L5 133 3 132 8 134'6 136.1 137.2 136.7 136.6 Beverages....................................... 1.61 152 6 153.3 145.0 153.1 147 9 155 7 156,0 158 6 153 7 161 6 157.4 160.9 167.2 Tobacco products............................. .82 120.9 112.1 120.0 122.8 123^4 123.1 124.0 120.8 119.9 113:6 119.5 121.2 118.7 Mining Coal, oil, and gas...................... 6.80 125 0 124 7 125 6 128 1 128 7 127 9 125.8 118 9 124 6 124 2 122.4 120.2 121 6 125.9 Coal'............................ 1.16 117 8 124.4 120 4 126 7 126 6 121'3 1208 86 6 115 9 118 3 115.3 112.4 114.2 120.2 Crude oil and. natural gas................. 5 64 126 5 124 8 126 6 128.4 129 2 129 3 126 8 125 5 126 3 125 4 123 9 121.8 123.2 127.0 Oil and gas extraction................... 4 91 136 3 134.5 136 8 138 7 139 3 140 2 137 3 1353 135 1 132 8 130.8 131.3 133'7 137.7 Crude oil.................................... 4 25 130 6 128.7 131.2 132,4 134.0 134.8 131 2 129.1 128.6 126.4 124.0 124.0 127.0 130.8 Gas and gas liquids................... .66 172^6 Oil and gas"drilling....................... 73 60 6 59.1 57.7 59 i 60 7 55 9 55 8 59 5 67 3 75 4 Metal, stone, and earth minerals....... 1.43 132.9 138.3 133.5 134.3 135.8 136.2 132.8 129.2 135.3 143.0 142.1 146.4 149.6 143.7 Metal mining..................................... .61 126.4 139.9 131.4 130 8 134.1 134.5 127 7 125 I 135.1 137 6 140.2 142,7 148.5 146.8 Stone and earth minerals................. .82 137^7 137.1 135.0 136.9 137.1 137.5 136.5 132.2 135.5 147,0 143.5 149.2 150.5 141.4 UtilitiM Electric............................................. 4 04 211 3 204.9 205 0 207 0 208 2 211.5 214.7 219.3 216.0 219.9 226.1 225.5 225.7 Gas..................................................... 1^28 171 4 170.0 168.4 169.2 171.3 172.6 For notes sec p. A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: N.S.A. □ JUNE 1969 MARKET GROUPINGS (t 957-59=* 100) 1957-59 1968 1969 pro­ 1968 Grouping por­ avertion ase” Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.’’ Mar.r Apr.r Total index...........................,., 100 00 165.4 163.2 165 2 169.4 160.3 163.3 169 5 170 7 169 1 166 3 166.5 170 5 173 1 172 7 Final products^ total............... 47 35 165.0 160 8 162 6 168.8 159.1 162.0 171.9 172 6 169 2 165 6 166.6 169 3 171 8 169 3 Consumer goods............................ 32.31 156.8 151 7 153.7 161.2 149.6 154.2 165.9 167 5 1617 155 8 158.9 161 8 163 9 160 3 Equipment, including defense. . .. 15.04 182.8 180.4 181.6 185.1 179.6 178.6 184.6 183.6 185.4 186:6 183.1 185.4 189^0 188^6 Materials............................................ 52.65 165.7 165.4 167.6 169.9 161.3 164.5 167.5 169.0 169.5 166.9 166.4 171 5 174.3 175.8 Consumer goods Automotive products............... 3.21 174 4 178.7 189.5 194.7 148.4 101.1 170.8 197.2 198 3 185 5 185.4 183 6 185 9 175 6 Autos................................................. 1.82 174 8 183 5 202.4 208.3 134.1 45.6 165,0 207 4 212 2 197, 0 187.7 1815 184 8 164 6 Auto pacts and allied products........ 1.39 17<9 172.3 172.7 176.7 167.4 174.1 178.4 183.8 180.1 176:9 182.3 1863 187'.4 190 J Home goods and apparel................... 10 00 156 4 154.9 153.1 161.0 140.4 155.8 162,2 167.4 162.7 149 2 155.9 164 2 168 9 166 0 Home goods....'.'........................... 4.59 175 3 172.5 170.8 177.4 157.1 169.8 183.9 189 5 186.2 178 8 182.8 187 7 191 2 190 0 Appliances, TV, and radios.......... 1.8! 168.5 168.7 163.3 171.7 139.8 151.6 180.5 187.5 180.1 161 5 183.2 195.0 198.9 196.6 Appliances.................................. 1.33 174 2 180.3 167.4 180.4 149.5 147.8 183,5 186.1 180.7 172 2 191.8 206 0 211 8 215.6 TV* and home radios................. .47 152 4 135.9 151.7 147.5 112.4 162.2 171,8 191.7 178 2 131 5 158.9 164.1 162 6 143 0 Furniture and rugs........................ 1 26 173 7 165.3 168.0 174.8 166.1 178.0 180,4 183 3 183.5 186 9 180.2 179 0 179 8 178 9 Miscellaneous home goods........... 1.52 185.2 183.1 182.0 186.2 170.2 184.7 191,0 196,9 195.6 192^6 184.5 186.2 191.6 191.3 Apparel, knit goods, and shoes........ 5.41 139.5 139.9 138.1 147.1 126.2 144.0 143,8 148.7 142.7 124.1 133.1 144.2 149.9 Consumer staples............................... 19,10 154.0 145.5 148.1 155.8 154.6 162.3 167 0 162 6 155.0 154.3 155.9 156 8 157 5 154.8 Processed foods................................ 8.43 1'32 6 122.8 125.1 132.2 132.2 140.2 152 6 147 9 137.0 132 4 128.1 129.2 128 5 126.9 Beverages and tobacco..................... 2 43 141 9 141 ^0 146.7 163.7 146 4 156.7 148 9 150 0 135.0 125 9 126.9 134 5 147 5 Drugs, soap, and toiletries............... 2.97 1933 183.7 192.8 198.7 18X8 196.9 199 4 204 6 201.4 196 8 199.6 203.7 205 0 207.8 Newspapers, magazines, and books. 1.47 143.3 142.7 144.9 143.0 142.8 145.3 142.0 145.7 144.1 146.8 145.0 145.1 1453 146.5 Consumer fuel and lighting.............. 3.67 182 9 169.3 165.7 174.1 188.8 195.5 195 9 176 5 175.0 191 3 206.9 200 5 196 0 Fuel oil and gasoline..................... 1.20 138 9 129.3 135.6 141.3 142.8 142.5 142.7 137.7 139.7 144.6 135.3 143.0 140.0 134.9 Residential utilities........................ 2.46 204 4 Electricity................................... 1.72 223.3 200.4 188.1 204.9 234.3 248.6 249.1 210.2 205.0 235.7 275.1 255.7 247.8 Gas............................................. .74 171.4 Equipment Business equipment............................ 11 63 184 8 182.7 183.6 187.4 180 2 178.6 186.6 187.0 188.3 191 3 190.2 191 8 194 6 194.6 Industrial equipment......................... 6 85 168 1 165 9 166 0 169.7 165 8 164.2 169 3 169 2 172.4 175 8 175.5 174 8 176 9 177.1 Commercial equipment................ , 2.42 205 3 200,5 201.2 205.2 198.4 204.6 209.0 209 4 211.2 209 8 210.1 212 8 215 3 215.9 Freight and passenger equipment... 1.76 234.5 232.9 238.4 243.4 229.6 219.2 238.0 240:2 240.0 239^8 238.1 244.4 249^6 249.3 Farm equipment................................ .61 146.1 156.7 153.6 152.9 126.8 119.1 143,4 145.7 126.8 131.1 138.6 146.8 152.8 Defense equipment............................. 3.41 Materials Durable goods materials............ 26 73 158.0 158.8 162.4 164.8 155.1 153.1 157 4 158.9 159.6 158.2 157.0 162 8 165.9 167.5 Consumer durable............................ 3 43 164.5 159,2 167.9 169.5 153.4 145.8 169 0 174.7 169.0 167.9 170.2 168 1 164. 3 Equipment......................................... 7.84 185.2 183.9 184.9 186.6 180.0 179.7 183 2 184.1 187.9 190 3 189.1 191 .0 192 8 192.8 Construction........................... 9.17 145.9 143.0 147.5 155.1 149.4 153.3 154 2 153.6 148.0 143 1 136.6 143,4 148 3 153.2 Metal materials n.e.c......................... 6.29 137.9 150.3 153.0 149.3 133.4 123.7 126 0 129.6 132.9 134 3 140.8 151.6 157 0 158.7 Nondurable materials......................... 25 92 173. 7 172.2 173.0 175.1 167.6 176.3 177 9 179 3 179.6 176 0 176.2 180.6 183.0 184.3 Business supplies............................... 9.11 157.5 156.4 1571. 160.6 148.1 158.8 163 0 168 9 165.3 157.7 158.4 163.7 169.0 169.1 Containers.................................... 3,03 157.0 156,3 157.2 163.8 152.1 165.0 169 0 175.9 161.1 146.7 159.0 166.1 170.1 172.3 General business supplies............. 6.07 157.8 156.4 157.1 159.0 146.1 155.7 1600 165.4 167.5 163.2 158.0 162.5 168.4 167.4 Nondurable materials n.e.c............... 7.40 221.8 221,3 221.8 222.9 211.0 221.4 225 0 230.5 232.6 228 9 228.2 236.2 237.0 239.3 Business fuel and power................... 9 41 151.6 148.9 150.1 151.6 152,4 157.7 155 2 149.2 151.9 152 0 152,5 153.1 154.0 155.8 Mineral fuels.................................. 6 07 132 8 134.3 133:8 132.8 130.1 134.9 13X6 126.1 132.7 131 6 129.9 131.8 132.7 136.0 Nonresidential utilities.................. 2.86 199.3 Electricity................................... 2 32 202 4 189 8 195 3 202.9 212.2 220.7 216 7 208 3 201.2 203 8 210,2 205.9 207 7 General industrial.................. 1 03 197 5 192 9 198 4 197.6 198 0 202.9 202 3 204 0 202.0 202 2 205.2 202.7 207.3 Commercial and other........... 1.21 216,7 196.2 202.1 217.3 235.2 247,3 240^2 222.7 210.9 215.5 225.4 219.2 218.7 Gas............................................. .54 171.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 175.0 175.1 178 5 184.5 153.5 141.5 178.5 192.7 191.2 181.5 183.9 186.0 189.1 184.1 Apparel and staples.......................... 24.51 150.8 144.2 145.9 153.8 148.3 158.3 161.9 159.5 152.3 147.6 150.9 154.1 155.9 For notes see page A-59. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 n INDUSTRIAL PRODUCTION: N.S.A. A 59 INDUSTRY GROUPINGS (1957-59- 100) Grouping 19 p p 5 r o 7 o r - ­ ­ 59 a 1 v 9 e 6 r 8 ­ 1968 1969 tion age” Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr.r Total index.................................... 100.00 165.4 163,2 165.2 169.4 160.3 163.3 169.5 170.7 169 1 166.3 166.5 170.5 173.1 172.7 Manufacturing, total............... 86.45 166 8 165 1 167.4 171.6 160.4 163.C 170.5 173.4 171 4 167.5 167.0 172.1 175.2 174 9 Durable.......................................... 48.07 169 9 169 4 172.1 175.4 164 1 160 5 170.6 173.5 174 2 172.6 171.4 175.3 178.5 178 2 Nondurable.................................... 38.38 163 0 159 8 161.6 167.0 155 7 166 3 170.5 173.3 168 0 161.2 161.4 168.0 170.9 170 8 Mining............................................... 8.23 126.4 127.3 128.6 128.9 127.1 130.7 128.6 122.8 126^8 126.3 124.1 124.2 125.1 129.1 Utilities.............................................. 5.32 201.6 Durable manufactures Primary and fabricated metals.......... 12.32 150.7 154.8 158.3 159.7 146.2 140.5 143.9 147.5 149 8 150.6 153.7 160.1 164.1 165.0 Primary metals.................................. 6.95 137 3 151 5 153.7 150.8 132 7 117 9 119.4 124.3 129 3 131.3 139.5 150.3 155.4 156.2 Iron and steel................................ 5.45 131 0 148 8 149.3 148.4 131.2 108 4 106.2 109,7 117 0 121.5 129.3 140.4 146.0 147.4 Nonferrous metals and products.. 1.50 160.1 161.3 169.7 159.7 138.2 152.4 167.4 177.3 173^8 167.0 176.5 186.2 189,5 188.4 Fabricated metal products............... 5.37 168.1 159.0 164,2 171.1 163 7 169 6 175.6 177.4 176 3 175.6 172.2 172.8 175.4 176.2 Structural metal parts................... 2.86 162 3 152 2 159.0 165.0 159.7 163 1 167.5 170,1 170 8 172.0 166.7 167.5 168.9 169.2 Machinery and related products........ 27.98 183.9 182.0 184.4 187.6 175.7 169.8 185.3 188.4 190.3 188.4 186.8 189.3 192.1 190.1 Machinery.......................................... 14.80 184 4 182.4 182 4 185.8 176 0 177 9 187.0 188 1 189 1 188 4 191.7 195.0 197.6 197 5 Nonelectrical machinery............... 8.43 181.3 182,2 181.0 183.8 175 3 172 5 180.2 180.4 182 6 185.3 188.3 192.3 195.5 196.3 Electrical machinery...................... 6.37 188 6 182 6 184,1 188.5 176 9 185 0 196.1 198.3 197 6 192.4 196.1 198.6 200.5 199.1 Transportation equipment......... 10.19 179.6 179.0 185,3 188.0 170,5 150.1 178.3 186.4 188 3 183.8 176.0 178.2 181.4 176,2 Motor vehicles and parts.............. 4.68 171.6 171.3 184.1 188.3 152.0 110 5 170.0 188.9 192 6 181.5 176.6 176.3 177.7 167.9 Aircraft and other equipment.... 5.26 185,1 184.4 184.7 186.0 184.8 182.4 184.0 181.9 182.3 183.2 172.6 176.7 181.1 179.6 Instruments and related products. .. 1.71 184.2 178.7 179.4 183.1 177.4 184.1 186.3 187.8 190.0 192.0 189.3 189.4 191.8 192.5 Ordnance and accessories................. 1.28 Clay, glass, and lumber..................... 4.72 137.2 137 6 139.2 146.6 142.0 147.6 148.6 148.3 139 4 133.2 127.6 134.6 139.5 145.0 Clay, glass, and stone products........ 2.99 146.2 145.5 148.7 155.1 154.4 159.3 158.6 160.1 15o:4 143.2 138.4 141.0 146.5 155.1 Lumber and products....................... 1.73 121.7 123.9 122,7 132.0 120.6 127.3 131.3 127.8 120 4 115.8 109.0 123.5 127.5 127.6 Furniture and miscellaneous............... 3.05 169.9 162.2 165.9 170.6 164.1 175.0 177.3 180.5 180 0 177. 7 169.8 171.0 173.3 173.7 Furniture and fixtures....................... 1.54 178 3 173 5 169.4 179.4 173 4 183 6 185,1 187 3 186 8 189 8 183.1 183.7 184,8 183,8 Miscellaneous manufactures............. 1.51 161.3 154.8 158.2 161.7 154.7 166.2 169.3 173.5 173J 165.3 156.2 158.1 161.6 163.4 Nondurable manufactures Textiles, apparel, and leather............ 7.60 145.3 145.8 144.3 151.1 129.0 146.9 147.6 151.6 148.0 133.2 140.6 148.7 154.2 150.2 Textile mill products......................... 2.90 151.5 149.2 151.6 156.2 136.6 152.2 155,0 156.4 157 4 146.6 150.6 154.3 159.4 156,6 Apparel products.............................. 3.59 149 9 153 4 148 9 158 2 133 1 152 0 152 9 158.9 152 5 132 0 143,7 156.8 163.5 Leather and products....................... 1.11 111 3 112 3 110 9 115.2 96 3 116 6 110 9 115 8 109 5 101.9 104.5 108.3 110.9 Paper and printing............................. 8.17 155.6 156 0 156.4 156.2 146,3 155.1 158.9 165.4 163 1 155 9 157.0 162.0 165.7 165,8 Paper and products........................ 3,43 163.9 165*9 163,5 166.6 151 0 164 1 168.6 178.4 177 0 156. 3 168.5 178.2 179.7 179.8 Printing and publishing..................... 4.74 >49.6 148 8 151.2 148.8 142 9 148 6 151.9 156.1 157 4 155.6 148.7 150,3 155.6 155.6 Newspapers.................................... 1.53 136.1 139 3 143.3 135.4 117,2 128 8 140.2 148.5 154 9 143 0 129.9 136.0 144.8 146.0 Chemicals, petroleum, and rubber.... 11.54 207.1 203.5 206.8 211.8 199.8 208.9 212.4 216.9 214.3 212.2 210.2 220.8 222.0 225.0 Chemicals and products........... 7.58 221.3 218.9 222.0 224.1 214.7 222 7 225.9 230.4 230 9 227.8 226.5 236.1 237.1 242.6 Industrial chemicals....................... 3.84 261 0 261 3 260.7 259.3 253 8 261 4 265.8 270 9 274 7 275 0 269.3 280.9 280.1 Petroleum products........................... 1.97 139.8 131^8 139.9 144.8 146 9 148'2 147.6 143.6 139 6 137.8 127.1 137.4 137.7 136.9 Rubber and plastics products........... 1.99 219.7 215 9 215.4 225.7 195 7 216 4 230.8 238 2 225 2 226.4 230.8 244.9 248.2 Foods, beverages, and tobacco........... 11.07 134.6 126.8 130.0 139.1 135.1 143.4 151.1 148.5 136 9 131.2 128.2 130.7 133.0 132.2 Foods and beverages......................... 10.25 135.7 128 0 130.5 139.7 137 2 144 2 152.9 149.8 138 0 134 2 129.0 131.6 134.3 133.3 Food manufactures........... 8.64 132.7 122.9 125.3 132.2 131.9 139.7 151.8 148.0 137 4 132.6 128.6 129.7 129.0 127.3 Beverages....................................... 1.61 152 6 155 8 158 1 180 1 165 3 168 6 159.1 159 4 141 4 143 0 131.3 141.6 163,0 Tobacco products........................ .82 <20.9 11L9 124,3 131.4 109^2 133 2 128.8 13L6 122^3 92^5 118.2 120.6 116.9 Mining Coal, oil, and gas.............................. 6.80 125.0 125.9 125.4 124.8 122.7 126 9 124 8 119 1 125.7 125 6 124.4 123.9 123.8 127.0 Coal.., ’............................................ 1 16 117.8 125 3 121 6 118 3 105 2 127.6 127 8 94 4 120 6 116 2 113,0 113.7 115.1 121,0 Crude oil and natural gas................. 5.64 126.5 126 6 126.2 126.1 126.3 126.7 124 2 124.2 126^7 127.5 126.8 126.0 125.6 128.2 Oil and gas extraction................... 4.91 136.3 136.4 136.6 136.2 136.0 136.7 133 8 133.5 135 5 135.2 134.0 136.1 136.9 139.5 Crude oil.................................... 4.25 130.6 130.8 131.9 131.1 131.3 132.1 128*6 127,8 128.6 127.7 125.9 127,7 129.5 132.9 Gas and gas liquids................... .66 172.6 Oil and gas drilling....................... .73 60 0 65 0 55.7 57,9 61 1 59 4 592 61.0 67 0 75.2 Metal, stone, and earth minerals....... 1.43 132.9 134.1 143.7 148.4 147.7 149.1 146.9 140.2 132.1 129.5 122.2 125.7 131.3 139.3 Metal mining..................................... .61 126.4 130.1 144.5 147,8 143.5 145.3 144 3 133,9 125.6 123.8 123.4 128.4 132.2 136.5 Stone and earth minerals................. .82 137.7 137,1 143.1 148.8 150,9 151.9 148.8 144.8 136.9 133.8 121.4 123.7 130.6 141.4 Utilities Electric............................................... 4.04 211.3 194.3 192,3 203.7 221.6 232.6 230.5 209.1 202.8 217.4 237.9 227.1 224.8 Gas................................................... 1.28 171.4 Note.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) 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 □ JUNE 1969 SELECTED BUSINESS INDEXES (1957-59 * tOO, unless otherwise noted) Industrial production Manu­ Prices 4 facturing 2 Ca­ pacity Nonag- Major market groupings Con­ ricul- Period Total Final products Mate- Ma g j r o o r u i p n i d ng u s stry i u n ( t c t p i i e o m l e i n z n r f t a g ) ­ . s t t c t r i r o o a u n n c c ­ t ­ T m o p t e u e l t o m a r n a y l t ­ l — ­ 1 p m E lo e m n y ­ t - P ro a ll y s ­ T s re a o t l t e a a s i l l 3 s C u o m n e ­ r W m c s o o h a m o l d e l i ­ e ty ­ Total g C s o u o o m n d e ­ s r E m q e u n ip t ­ dais Mfg. M in i g n­ U itie ti 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. i 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 1H J 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 1968..................... 173 1968—Apr.......... 162.5 161.7 153.5 179.4 163.1 163.7 127,1 195.8 164 129.0 114 6 161 4 162 119.9 108.3 May......... 164.2 163.0 154.6 181.1 165.2 163.8 126.9 196.1 • *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.i Aug.......... 164.6 164.8 156.8 181.9 164.2 165.7 129.4 202.1 ’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 9 171,2 169 122,2 109,1 166.0 167.0 159.6 183.0 165.7 167.8 120.7 208.9 200 130.8 115 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 ’84.2 183 131.3 115 7 173, 8 168 123.4 109.6 168.7 168.1 160.1 185.3 169.3 170.2 127.4 210.1 179 132,0 116 4 175 3 166 123.7 109.8 1969—Jan........... 169.1 168.2 161.0 183.5 169.6 170.2 125 8 215.1 1 191 132,6 116 6 175 8 170 124.1 110.7 Feb........... 170.1 169.3 161.7 185.5 170.8 in 8 124 8 214 9 j ’84.5 205 133 2 1170 174 3 171 124.6 111.1 171.3 170.8 162.8 187.8 172.1 173 0 126 5 215.3 177 133 6 117 3 178 2 r169 125 6 111.7 Apr.......... 171.8 170.0 161.7 188.4 173.4 173^2 128.9 214.6 183 133.6 117 0 178 J 172 126.4 111.9 May”....... 172.8 170.6 161.8 190.2 174.3 174.2 130.5 215.0 ........... 133.8 117.0 .178.7 172 112.6 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. ■* Prices are not seasonally adjusted. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Note.—Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1968 1969 Type of ownership and type of construction 1967 1968 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total construction 3.................... 54.514 61,732 4,878 6,170 5,589 5,956 6,318 5,170 6,171 4,863 4,543 4,766 4,802 5,003 5,895 By type of ownership: Public.................................... 19,039 19,597 1,554 2,036 1,860 2,256 1,924 1,558 1,728 1,558 1,278 1,546 1,572 1,632 1,791 Private 1................................... 35,475 42,135 3,324 4,135 3,730 3,700 4,394 3,621 4,443 3,305 3,265 3,220 3,230 3,371 4,104 By type of construction: Residential building 1. ....... 21,155 24,838 2,312 2,543 2,243 2,287 2,295 2,125 2,408 2,043 1,743 1,746 1,820 1,957 Nonresidential building........... 20,139 22,512 1,522 2,227 2,030 2,414 2,128 1,815 2,370 1,992 1,849 2,145 1,885 1,772 Nonbuilding................ 13,220 14,382 1,044 1,400 1,316 1,255 1,895 1,230 1,393 828 951 875 1,097 1,274 Private housing units authorized. .. 1,141 1,330 1,340 1,280 1,281 1,289 1,290 1,393 1,378 1,425 1,463 1,403 1,477 1,421 1,449 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge 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. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 n CONSTRUCTION A 61 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total N fa o rm n­ Buildings Mili­ High­ C v o a n ti s o e n r ­ Total de re n s t i i ­ al Total Indus­ Com­ Other Other Total tary way de m v & e e n l o t p­ Other * build­ trial mercial ings l 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 1960............................. 531941 381078 211706 16,372 21851 4,180 3,118 6,'223 15,863 1,366 5,437 1,175 7 ,’885 1961............................. 55^447 38,299 21,680 161619 2,780 41674 3’,28O 51885 171148 1,371 51854 1,384 81539 1962 3........................... 591667 411798 24,292 171506 21842 5,144 31631 51889 17,869 1,266 6,365 11524 81714 19634........................... 63,423 44,057 26,187 17,870 21906 4,995 31745 6,224 19,366 1,189 7,084 1,690 91403 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.............................. 721319 501253 261268 23’,985 5,118 61739 4J735 7',393 221066 852 71550 2,019 11,645 1966.............................. 75,120 51,120 231971 27,149 6,679 6,879 51037 8,554 24,000 769 8,355 2,195 12,681 1967.............................. 76,160 501587 23,736 26,851 6,131 6,982 41993 81745 25^573 721 81538 2,196 14,118 1968............................. 84,692 56,996 28,823 28,173 51594 8,333 4,873 91373 27,696 824 9,295 2.046 15,531 1968—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 851707 57,260 29,628 27,632 51275 81111 5J21 91125 281447 767 91895 2'054 15 731 June. 821050 54.981 28,187 261794 4,’852 8,122 41678 9,142 27’,069 660 9,168 2^026 15,215 July................... 81,658 54’,988 271770 27,218 41752 81272 41623 9,571 26,670 679 9,103 1,763 15,125 Aug................... 831736 56,682 28,325 281357 5,575 81641 41772 9,369 27,054 812 9,181 1 ’,894 151167 Sept................... 851957 57,444 291350 28,094 5,492 81534 41539 9,529 28,513 787 9,042 1,994 16,690 85,931 59’259 29 823 29’436 61096 8 939 4 680 9 721 261672 1 028 8 307 2 082 15 255 Nov.......... 89,141 59,014 30,152 28 ,’862 6,271 8,262 4,716 9,613 301127 '852 161719 029 16,527 Dec................... 851946 58,899 30,937 271962 51905 81046 4,449 9,562 271047 1,132 8,387 2,130 15,398 1969—Jan.................... 91,716 62,691 30,900 31,791 6,800 9,971 5,142 9,878 29,025 Feb................... *■90,961 *■62,164 *■311050 31,114 61318 91941 5J98 9,657 *28,797 Mar?............... 901984 61,859 31,520 30,339 6,019 9,751 4 ,'827 9,742 29’125 Apr.p................ 90,798 611351 311871 29,480 51795 8,764 5,188 9,733 29,447 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). s Sewer and water, formerly shown separately, now included in "Other.” s 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 UNITS (In thousands) Units started Private (S.A., A.R.) Government Mobile Private and Public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.SA.). Total North- North 1- 2- to 4- 5- or east Central South West family family more- Total Private Public Total FHA VA family 1959 1,517 268 368 512 369 1,234 2S3 1,554 1,517 37 458 349 109 121 1960 1,232 221 292 429 309 995 257 1,296 1,252 44 336 261 75 104 1961 1,313 247 277 473 316 974 339 1,365 1,313 52 328 244 83 90 1962 1,463 264 290 531 378 991 471 1,492 1,463 30 339 261 78 118 1963 1,610 261 328 591 431 1,021 519 1,642 1,610 32 292 221 71 151 1964 1,529 253 339 582 355 972 108 450 1,562 1.529 32 264 205 59 191 1965 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968 1,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 317 1968—Apr. 1,591 233 396 638 324 922 70 599 165 162 3 28 23 5 27 May 1,364 215 322 561 266 838 86 440 145 141 4 26 20 6 27 June 1,365 204 324 547 290 790 93 482 143 138 5 25 20 5 26 July. 1,531 319 373 598 241 904 82 545 143 140 3 24 19 5 27 Aug. 1,518 254 343 627 294 867 82 569 141 137 4 26 21 5 30 Sept. 1,592 290 355 613 334 944 80 568 140 134 6 23 19 5 30 Oct.. 1,570 2t7 398 628 327 965 81 524 143 141 3 27 21 5 33 Nov. 1,733 193 396 810 334 905 86 742 130 127 2 22 18 4 28 Dec. 1,509 196 345 659 307 922 69 516 100 96 3 21 16 4 24 1969—Jan.... 1,878 316 564 760 238 1,066 88 724 106 102 4 18 14 4 27 Feb... 1,686 216 578 662 230 975 112 599 95 90 5 17 13 3 28 Mar.*. 1,580 265 430 551 334 826 92 662 135 132 4 23 19 4 32 Apr.*, 1,543 253 352 577 361 785 87 671 158 157 1 27 23 4 Notb.—Starts are Census Bureau series (including farm starts) except office reports of first compliance inspections. Data may not always add in the case of Government-underwritten, which are from Federal Housing to totals because of rounding. , Admin, and Veterans Admin, and represent units started, based on field Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 62 EMPLOYMENT □ JUNE 1969 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Total non- Total Unemploy­ Period i p ru o t p it u u l t a io ti n on a l la N b o o t r i n fo t r h c e e l f a o b rc o e r Employed1 m ra e te n 2 t N.S.A. N.S.A. S.A. ToUl Total In c n u o lt n u a ra g l r i- agric In ul ture U pl n o e y m ed ­ (pe S r . c A e . nt) 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 J 088 66^726 4^361 3,366 43 1966.......................... 131,180 52,288 78^893 75,770 72 ,'895 68,915 3,979 2,875 3.8 1967.......................... 133,319 52,527 80'793 77347 74^371 70,527 3,844 2,975 3.8 1968.......................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 19683—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,'486 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 3.7 135,839 52 047 82,338 78 749 75 973 72,222 3 751 2,776 3 5 Sept............... 1361036 53’900 82338 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................ 136^940 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 2'728 3,4 Apr................ 137,337 54 200 83,966 80 450 77’605 73 941 3 664 2'845 3,5 Nfay............... 137,549 54*464 83,593 80,071 77,265 73,460 3^805 2,806 3.5 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning Jan. 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g ac­ Mining c C o o n n s t t r r a u c c t ­ T tio ra n n s A p o p r u t b a ­ ­ Trade Finance Service G m ov e e n r t n­ tion lic utilities 1963......................................................... 56,702 16,995 635 2,963 3,903 11,778 2,877 8,325 9,225 1964......................................................... 58,332 17,274 634 3,050 3,951 12,160 2,957 8,709 9,596 1965......................................................... 60,832 18,062 632 3,186 4,036 12,716 3,023 9,087 10,091 1966................................................... 64,034 19,214 627 3,275 4,151 13,245 3,100 9,551 10,871 1967......................................................... 66,030 19,434 616 3,203 4,271 13,613 3,217 10,060 11,616 1968......................................................... 68,146 19,740 625 3,259 4,348 14,111 3,357 10,504 12,202 SEASONALLY ADJUSTED 1968—May............................................. 67,792 19,693 631 3,245 4,281 14,049 3,334 10,425 12,134 June............................................. 68,039 19,777 632 3,174 4,336 14,086 3,335 10,467 12,232 July.............................................. 68,170 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 3,279 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............................................... 69,983 20,067 646 3,501 4,420 14,475 3,474 10,852 12,548 Mar.............................................. 70,159 20,124 645 3,443 4,447 14,540 3,486 10,913 12,561 Apr.”........................................... 70,190 20,094 645 3,42! 4,481 14,574 3,501 10,900 12,574 May”........................................... 70,282 20,112 642 3,389 4,481 14,604 3,510 10,926 12,618 NOT SEASONALLY ADJUSTED 1968—May............................................. 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 3,498 4,394 14,112 3,407 10,687 11,848 Aug.............................................. 68,508 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 3,498 4,400 14,328 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............................................... 68,735 19,874 628 2,990 4,340 14,126 3,439 10,668 12,670 Mar.............................................. 69,225 19,957 629 3,068 4,389 14,229 3,462 10,782 12,709 Apr.*........................................... 69,802 19,938 639 3,260 4,445 14,428 3,487 10,900 12,705 May”........................................... 70,222 19,991 642 3,399 4,468 14,512 3,503 10,992 12,715 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. (hat includes the 12th of the month. Proprietors, self-employed persons, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 May Mar. Apr,» Mayp May Mar. Apr.” Mayp Total............................................................................... 14,449 14,774 14,740 14,734 14,352 14,631 14,600 14,636 Durable goods................................................................ 8,401 8,646 8,612 8,614 8,401 8,596 8,590 8,612 Ordnance and accessories...................................... 193 199 195 196 191 199 195 194 Lumber and^wood products.................................. 516 538 526 524 515 519 515 523 Furniture and fixtures........................................... 389 411 412 409 384 407 407 403 Stone, clay, and glass products............................ 514 536 532 532 517 519 527 534 Primary metal industries....................................... 1 ,054 1,053 1,052 1,053 1,064 1 ,054 1 ,059 1,063 Fabricated metal products.................................... 1,060 1,120 1,115 1,117 1,056 1,109 1,108 1,112 Machinery................................................... 1,331 1,365 1,373 1,378 1,336 1,376 1,383 1,384 Electrical equipment and supplies....................... 1,312 1,354 1,357 1,367 1,293 1,342 1.342 1,348 Transportation equipment.................................... 1,419 1,433 1,415 1,404 1,437 1,449 1,428 1,422 Instruments and related products......................... 275 286 286 287 273 285 285 285 Miscellaneous manufacturing industries............... 338 351 349 347 335 337 341 344 Nondurable goods......................................................... 6,048 6,128 6,128 6,120 5,951 6,035 6,010 6,024 Food and kindred products.................................. 1,185 1,206 1,204 1 ,200 1,122 1,124 1,122 1,137 Tobacco manufactures.......................................... 73 71 69 68 63 64 60 58 Textile-mill products............................................. 871 875 871 867 869 871 868 865 Apparel and related products............................... 1,256 1,254 1,265 1,269 1,245 1,266 1,251 1,259 Paper and allied products..................................... 538 558 554 555 534 552 549 551 Printing, publishing, and allied industries........... 665 674 675 673 663 674 674 671 Chemicals and allied products.............................. 603 623 618 616 606 623 625 619 Petroleum refining and related industries............. 118 115 117 116 118 112 116 116 Rubber and misc, plastic products........................ 427 451 453 454 424 449 449 451 Leather'and leather products................................ 312 301 302 302 307 300 296 297 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 week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1968 1969 1968 1969 1968 1969 May Mar. Apr.p Mayp May Mar. Apr.P MayP May Mar. Apr.p MayP Total............................................................. 40 9 40 8 40 8 40 8 122 29 127.39 127 58 129 34 2 99 3 13 3 15 3 17 Durable goods............................. 41 5 41.5 41.4 41.5 132 29 137.45 137.61 139.36 3.18 3.32 3.34 3,35 Ordnance and accessories.......................... 41 5 40.7 40.9 4i.i 133.63 136.49 138.45 140.15 3.22 3.37 3.41 3.41 Lumber and wood products..................... 40 3 40 9 40.0 40.2 102 97 107.59 105 06 108 00 2.53 2.65 2.62 2.66 Furniture and fixtures............................... 41 2 40 8 40.9 41.1 99 88 103,42 103 46 105.30 2.46 2.56 2.58 2,60 Stone, clay, and glass products................ 41 8 42 3 41.9 42.0 126.30 130,10 131.99 134,09 3.00 3.12 3.15 3.17 Primary metal industries........................... 42 0 41 9 42,0 42.1 148.54 155.82 157.88 158,63 3.52 3.71 3.75 3.75 Fabricated metal products........................ 41.7 41.8 41.6 41.6 131.99 136.86 137.03 139.19 3.15 3,29 3,31 3,33 Machinery................................................. 41 9 42 8 42.7 42.7 141.46 151.79 152 01 153.15 3.36 3.53 3.56 3,57 Electrical equipment and supplies............. 40.2 40 7 40.7 40.9 116,58 123.42 123 32 125.56 2.90 3.04 3.06 3,07 Transportation equipment. .*."................... 42.9 41.6 41,6 41.6 157.38 157.38 157,82 160.55 3.66 3.82 3.84 3.85 Instruments and related products............. 40 5 40.8 40.7 40.6 119.88 126.58 126.36 127.08 2.96 3.11 3,12 3,13 Miscellaneous manufacturing industries... 39.7 39.0 39.4 39.4 98.75 102.05 102.44 103.10 2.50 2.61 2.62 2.63 Nondurable goods.............................................. 39.8 39.7 39,8 39.6 103.26 112.86 113.08 114.05 2.72 2.85 2.87 2.88 Food and kindred products............... 40.7 40.9 41,0 40.7 113.68 118.08 118.19 120.18 2.80 2.93 2.94 2.96 Tobacco manufactures.............................. 38.0 36.4 35.5 38.1 98.14 94.70 95.50 103.30 2.61 2.66 2.69 2.74 Textile-mill products................................ 41,2 41.2 41.0 40.8 89.40 93.89 93.15 94.25 2.17 2.29 2.30 2.31 Apparel ancf related products................... 36.3 35.9 35.9 35.9 79.50 83.13 81.98 82.57 2.19 2.29 2.29 2.30 Paper and allied products.................... 43.0 43,3 43.3 43.2 129.13 135.45 135.99 137.06 3.01 3.15 3.17 3.18 Printing, publishing, and allied industries. 38.1 38.3 38.3 38.3 131.45 139.03 138,68 140.56 3,45 3.63 3.64 3.67 Chemicals and allied products.................. 41.6 41.8 41,5 41.5 135.01 141.28 142,46 142.61 3.23 3.38 3.40 3.42 Petroleum refining and related industries . 42.3 43.1 42.7 43.0 159.64 168.67 173,29 172.77 3.73 3.95 4.03 3.99 Rubber and misc. plastic products........... 41.7 41.4 41.4 41.2 120.22 123.30 123,82 124.53 2.89 3.00 3.02 3.03 Leather and leather products.................... 38.8 37.6 37.7 37.7 85.47 87.28 85.78 87.89 2.22 2.34 2,35 2.35 Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 64 PRICES a JUNE 1969 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period ite A m U s Food Total Rent H ow s o h n m ip e e r ­ ­ F c a o o u n i a e d l l l t e r G a i l c e n a i c d s t ­ y o n F t i p a n i i o e s n u g h r n d r s a ­ ­ ­ A up p a k p n e a d e r e p l T p t r o i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r e a ­ l r R e t a c i e i n o n r a e g n d d a ­ ­ O g s a i o e c t n o h e rv d d s e ­ s r 1929 59.7 55.6 85.4 1933 45.1 35,3 60.8 1941 51.3 44.2 61.4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58.2 1945 62.7 58.4 67.5 66.1 ....... 53.6 86.4 55.4 ......5..7....5 63.6 75.0 67.3 1958 100.7 101.9 100.2 100.1 100.4 99.0 100.3 99.9 99.8 99.7 100.3 100.1 100.4 100.8 99.8 1959 101.5 100.3 101.3 101.6 101.4 100.2 102.8 100.7 100.6 103.8 102.8 104.4 102.4 102.4 101.8 I960 103. t 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 103.4 108.1 104.1 104.9 103.8 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. t 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—Apr. 119.9 118.3 117.5 114.4 124.0 114.0 109.5 112.2 118.4 119.0 128.8 143.5 119.0 124.9 122.5 May 120.3 118.8 117.8 114.6 124.3 115.3 109.5 112.5 119.5 119.1 129.2 144.0 119.6 125.3 122.6 June 120.9 119.1 118.7 114.9 126.1 115.4 109.4 112.9 119.9 119.7 129.7 144.4 120.1 125.6 123.5 July. 121.5 120.0 119.5 115.1 127.8 115.7 109.5 113.1 119.7 119.8 130.2 145.1 120.4 125.9 123.9 Aug. 121.9 120.5 120.1 115.4 128.8 115.7 109.7 113.3 120.3 120.0 130.5 145.5 120.9 126.3 124.2 Sept. 122.2 120.4 120.4 113.7 129.1 115.8 109.3 113.9 122.2 119.5 131.1 146.4 121.5 126.7 124.4 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 Nov. 123.4 120.5 121.7 116.3 131.1 115.9 109.9 114.8 124.0 t21.2 132.4 148.2 122.8 128.0 125.4 Dec. 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 U6.9 110.2 115.8 123.9 122.0 133.7 151.3 124.1 128.4 125.8 Mar. 125.6 122.4 124.4 117.5 135.7 117.2 110.6 116.4 124.9 124.3 134.3 152.5 124.8 128.7 126.1 Apr. 126.4 123.2 125.3 117.8 137.1 117.4 111.2 116.9 125.6 124.6 135.1 153.6 125.5 129,6 126,6 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59- 100) Industrial commodities Pro­ AU Farm cessed Ma­ Period com­ prod­ foods chin­ Non- Trans­ m ti o e d s i­ ucts fe a e n d d s Total t T e il e e tc x s . ­ , H e id tc e . s, F e u tc e . l, C ic e h a t e c ls m . , ­ R b e u e tc r b . , ­ L b e u e tc m r . , ­ F e a t p c e . r, M e a t l e c s . , t ­ e a q e n u ry d ip ­ F t e u u t r c r e n . , i ­ t m m a i l e l n i ­ c ­ e p t q o io u r n t ip a ­ ­ 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 I 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 1012 102.1 100 4 161,2 n.a. 100.8 1960............................. 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100 2 99 9 100.4 101.8 101 3 102.9 100.1 101.4 n.a. 101.7 1961............................. 100.3 96.0 101.6 100.8 99.7 106.2 100.7 99 1 96.1 95 9 98.8 1007 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 I 103.1 98.1 101.3 n.a. 103.3 1964........................... 100.5 94.3 103.1 10112 101.2 104.6 97.1 96.7 92'5 100 6 99.0 102 8 103.8 98 5 161.5 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 J 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—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 1117 115.0 104.0 107.8 n.a. 111.8 June................. 108.7 102.5 114.6 108.8 105.2 118.7 103.7 98 5 99 9 117 2 104.7 111 7 115.0 103 9 108.3 n.a. 111.8 July.................. 109 1 103.9 115.9 108 8 105 8 119.5 103 3 98 2 100 7 119 2 104 9 111 4 il5 2 104 1 108.4 n.a. 111 5 Aug................... 108.7 101.4 114.9 108.9 106,0 119.5 102.6 98 1 100 6 120 5 104.9 111 3 S15.4 104^2 108.7 n.a. 111.6 Sept.................. 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 Oct.................... 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 8 101.1 126 8 105.2 112 4 116.6 104 7 109.2 n.a. 112,5 Dec................... 109.8 103.3 114.7 110.2 107.1 122.8 102.2 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 9 107.4 123.5 102 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 Mar.................. 111.7 106.5 116.4 112^0 107.1 123.4 104.2 98^0 100^9 149'5 107.4 115 8 117.8 105.7 111.9 100.0 112.5 Apr................... 111.9 105.6 117.3 112.1 107.1 126.0 104.5 97.9 101.2 143.3 108.0 116.5 118.0 105.8 112.3 100.1 112.7 1 For transportation equipment, Dec. 1968- 100. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 o PRICES A 65 WHOLESALE PRICES: DETAIL (1957-59- 100) 1968 1969 1968 1969 Group Group Apr. Feb. Mar. Apr. Apr. Feb. Mar. Apr. Farm products: Pulp, paper, and allied products: Fresh and dried produce......................... 112.0 108.7 112.1 106.8 Pulp, paper and products,, excluding Grains............................................................. 84.7 82.0 81.6 83.1 building paper and board.................. 105.7 107.1 107.7 108.3 Livestock..................................... 105.2 109.2 112.5 113.8 Woodpulp.................................................... 98 0 98 0 98 0 98 0 Live poultry....................... 81.1 94.3 95.5 87.0 Wastepaper.................................................. 96 5 1078 108.1 109 I Plant and animal fibers........................... 76.1 67.7 67.3 67.3 Paper...................................................... 112 1 115 7 116 1 116 4 Fluid milk.................................................... 126.5 132.6 132.8 133.5 Paperboard.................................................. 91.7 92 6 93^6 93 5 Eggs................................................................. 82.7 108.1 110.9 97.3 Converted paper and paperboard.. . . 106.5 106.8 107.6 108.3 Hay and seeds............................................. 113.9 112.4 112 5 113.8 Building paper and board..................... 92.1 98.2 99.6 100.4 Other farm products................................. 101 6 106.4 106.8 106.1 Metals and metal products: Processed foods and feeds: Cereal and bakery products.................. 117 3 119.3 119.3 119.3 Iron and steel............................................. 105 0 108 0 108 8 108 9 Meat, poultry, and fish............................ 105 8 111.4 112 2 114.0 Steelmill products..................................... 107.7 110 7 111.7 1119 Dairy products............................ (25 9 130.2 130 4 131 4 Nonferrous metals............................. ... 131.0 128.9 129.9 132 4 Processed fruits and vegetables............. 114.6 114.5 115.1 115.4 Metal cnotainers....................................... 116.9 119.4 119.4 119 7 Sugar and confectionery......................... 114 0 1(9.2 119 5 120.2 Hardware..................................................... 1(6.6 119 0 119.1 119 9 Beverages and beverage materials .... 109.5 111.1 111.3 111.4 Plumbing equipment............................... 114.6 116 I I (6.6 116 6 Animal fats and oils.................................. 71.9 90.3 96 1 90.8 Heating equipment. ............................ 94.5 96.3 96.6 96 8 Crude vegetable oils.................................. 88.8 83.4 83 0 80.6 Fabricated structural metal products. 107.1 109.4 109.6 110.2 Refined vegetable oils............................... 93.0 95.0 91.6 89.4 Miscellaneous metal products............. 115.5 120.4 120.4 120.4 Vegetable oil end products..................... 100.2 102.9 103 1 103.3 Miscellaneous processed foods............. 114 0 119.1 119 3 119.0 Manufactured animal feeds.................... 117.1 117.5 115.7 118.3 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.... 126.2 131.6 131.7 131.8 Construction machinery and equip... 128.9 133.6 134.0 134.1 Cotton products......................................... 105.2 104.8 104 6 104.5 Metalworking machinery and equip.. 127.6 131.1 131.4 131.8 Wool products............................................. 103 0 104.4 104 2 104.3 General purpose machinery and Man-made fiber textile products.......... 89.3 92.3 92.1 92.4 equipment............................................... 116.8 119.1 119.8 120.0 Silk yarns...................................................... 189 7 156.4 155 0 155 4 Special industry machinery and Apparel.......................................................... 109 3 112.7 112 8 113.0 equipment (Jan. 1961 — 100)....... 121.6 126.6 126.9 127.2 Textile housefurnishings............ 110.7 107.6 107 7 107.7 Electrical machinery and equip............ 103.0 103.5 104.2 104.3 Miscellaneous textile products.............. 110.1 127.1 121.9 119.7 Miscellaneous machinery...................... 113.0 116.1 116.5 116.6 Hides, skins, leather, and products: Furniture and household durables: Hides and skins.......................................... 95 6 106.3 109 I 125.8 Leather........................................................... 111 5 116.5 116 4 122.3 Household furniture................................ 116.2 121.0 121.3 121 5 Footwear...................................................... 126 6 132.2 131 5 131.9 Commercial furniture............................. 1(4.5 117 2 117.8 118 0 Other leather products............................ 112.5 114.8 115.3 116.0 Floor coverings......................................... 95.2 95.5 95.5 95,0 Household appliances.............. 92.2 92.5 92.8 93.0 Fuels and related products, and power: Home electronic equipment.................. 81.8 78.7 78.6 78.5 Other household durable goods.......... 124.5 129.1 129.6 130.0 Coal................................................................ 105 4 112.7 112.7 112.8 Coke............................................................... 117,0 120.3 120 3 120.3 Gas fuels (Jan. 1958-100)..................... 125.0 124.0 124.6 121.8 Nonmetallic mineral products: Electric power (Jan. 1958— 100)........... 101.3 102.2 102.3 102.3 Crude petroleum........................................ 99 0 99.9 103 7 104.8 Flat glass..................................................... 109.4 110.8 112.3 113.4 Petroleum products, refined............ 100.3 99.5 101.7 102.5 Concrete ingredients............... 109.0 1(3.8 115.5 1(5.6 Concrete products................. 107.5 110.8 111.2 111.3 Chemicals and allied products: Structural clay products excluding refractories..................................... 112.1 115.9 (16.0 116.7 Industrial chemicals............................. 98.8 98.1 97.9 96.7 Refractories................................................. 112.5 112.6 112.6 113.6 Prepared paint............................................ 114.4 118.2 118.7 118.7 Asphalt roofing......................................... 97.6 99.6 99.2 99.2 Paint materials............................................ 92.5 92.0 91 9 92.2 Gypsum products....................... 105.1 106.2 106.2 106.2 Drugs and pharmaceuticals.................... 93.4 93.4 93.6 93.7 Glass containers........................................ 106.3 116.1 116.1 116.1 Fats and oils, inedible.............................. 80.9 73.6 80.4 83.7 Other nonmetallic minerals......... 103.8 107.6 107.6 109.0 Agricultural chemicals and products.. 101.6 92.2 92.3 92.1 Plastic resins and materials.................... 83.2 81.5 81.3 80.9 Other chemicals and products.............. 109.8 111.1 111.2 112.2 Transportation equipment: Rubber and products: Motor vehicles and equipment............ 104.3 106.4 106.3 106.4 Railroad equipment (Jan. 1961— 100). 105.4 108.5 110,2 110.2 Crude rubber................................................ 84.1 87.5 88.9 90.1 Tires and tubes........................................... 98.7 96.3 96.3 96.3 Miscellaneous rubber products....... 106.9 109.5 109.7 110.1 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms. ammunition........................................... 108.1 110.1 110.5 110.8 Lumber.......................................................... 123.6 155.8 164.7 164.9 Tobacco products.................................... 114.9 116.7 116.7 116.9 Millwork....................................................... 116.6 126.7 128.8 132.3 Notions........................................................ 105.7 100.7 100.7 100.8 Plywood......................................................... 97.3 146.5 146.9 111.0 Photographic equipment and supplies 114.9 112.7 112.0 112.1 Other wood products (Dec. 1966— 100) 106.1 111.2 112.4 112.6 Other miscellaneous products.............. 110.4 111.2 111.4 111.7 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 ° JUNE 1969 GROSS NATIONAL PRODUCT (In billions of dollars) 1968 1969 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968 I II in IV Ip Cross national product.................................... 103.1 55.6 124.5 284.8 632.4 684.9 747.6 789.7 860.6 831.2 852.9 871.0 887.4 903.3 Final purchases.............................................. 101.4 57.2 120.1 278.0 626.6 675.3 732.8 783.6 852.9 829.1 842.1 863.5 876.8 896.4 Personal consumption expenditures................ 77.2 45.8 80.6 191.0 401.2 432.8 465.5 492. 2 533.8 519.4 527.9 541.1 546.8 557.4 Durable goods............................................. 9.2 3.5 9.6 30.5 59.2 66.3 70. 5 72.6 82.5 79.0 81.0 85.1 85.1 86.8 Nondurable goods....................................... 37.7 22.3 42.9 98.1 178.7 191.1 206.7 215.8 230.3 226.5 228.2 232.7 233.7 238.1 Services........................................................ 30.3 20.1 28.1 62.4 t63.3 175. 5 188.3 203.8 221.0 213.9 218.7 223.4 228.0 232. 5 Gross private domestic investment.................. 16.2 1.4 17.9 54.1 94.0 108.1 120.8 114.3 127.7 119.7 127.3 127.1 136.6 139.0 Fixed investment.......................................... 14.5 3.0 13.4 47.3 88.2 98.5 106.1 108.2 119.9 117.6 116.5 119.6 126.0 132.1 Nonresidential........................................... 10.6 2.4 9.5 27.9 61.1 71.3 81.3 83.6 90.0 88.6 87.0 90.1 94.3 99.6 Structures............................................. 5.0 .9 2.9 9.2 21.2 25. 5 28.5 27.9 29.2 29.6 28.5 28.8 29.9 32.2 Producers’ durable equipment............ 5.6 1.5 6.6 18.7 39.9 45.8 52.8 55.7 60.8 59.0 58.5 61.3 64.5 67.4 Residential structures.............................. 4.0 .6 3.9 19.4 27.1 27.2 24.8 24.6 29.9 29.1 29.5 29.5 31.6 32.5 Nonfarm............................................... 3.8 3.7 18.6 26.6 26.7 24.3 24.0 29.3 28.5 28.9 28.9 31.0 31.8 Change in business inventories................... (.7 -1.6 4. 5 6.8 5.8 9.6 14.7 6.1 7:7 2.1 10.8 7.5 10.6 6.9 Nonfarm................................................... 1.8 -1.4 4.0 6.0 6.4 8.6 14.9 5.6 7.3 1.6 10.4 7.3 9.7 6.2 Net exports of goods and services................... 1.1 .4 1.3 1.8 8.5 6.9 5.1 4.8 2.0 1.5 2.0 3.3 1.0 .0 Exports......................................................... 7.0 2.4 5.9 13.8 37.1 39.2 43.1 45.8 50.0 47.5 49.9 52.6 50.1 46.6 Imports........................................................ 5.9 2.0 4.6 12.0 28.6 32.3 38.1 41.0 48.1 46.0 47.9 49.4 49.1 46.6 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 128.7 137.0 156.2 178.4 197.2 190.5 195.7 199.6 203.0 206.9 Federal......................................................... 1.3 2.0 16.9 18.4 65.2 66.9 77.4 90.6 100.0 97.1 100.0 101.2 101.7 102.4 National defense..................................... 13.8 14.1 50.0 50.1 60.6 72.4 78.9 76.8 79.0 79.6 80.0 80.2 Other........................................................ 3.1 4.3 15.2 16.8 16.8 18.2 21.1 20.3 21.0 21.5 21.7 22.2 State and local............................................. 7.2 6.0 7.9 19.5 63.5 70.1 78.8 87.8 97.2 93.4 95.6 98.4 101.2 104.5 Gross national product in constant (1958) dollars......................................................... 203.6 141.5 263.7 355.3 581.1 617.8 657.1 673.1 706.7 692.7 703.4 712.3 718.4 723.5 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) 1968 1969 1929 1933 1941 1950 1964 1965 1966 1967 1968 Item I II III IV Ip National income............................................... 86.8 40.3 104.2 241.1 518.1 564.3 620.8 652.9 712.8 688.1 705.4 722.5 735.1 748.7 Compensation of employees............................ 51.1 29.5 64.8 154.6 365.7 393.8 435.6 468.2 513.6 496.8 507.1 519.7 530.7 545.2 Usages and salaries...................................... 50.4 29.0 62.1 146.8 333.7 358.9 394.6 423.4 463.5 448.3 457.6 469.0 479.0 490.8 Private...................................................... 45.5 23.9 51.9 124.4 269.4 289.6 316.9 337.1 367.2 355.7 326.8 370.9 379.2 389.4 Military.................................................... .3 .3 1.9 5.0 11.7 12.1 14.6 16.3 18.3 17.5 17.8 18.9 18.8 18.8 Government civilian................................ 4.6 4.9 8.3 17.4 52.6 57.1 63.1 70.0 78.1 75.2 77.0 79.1 81.1 82.6 Supplements to wages and salaries.............. .7 .5 2.7 7.8 32.0 35.0 41.1 44.8 50.1 48.4 49.4 50.7 51.7 54.4 Employer contributions for social insurance................................................. . 1 .1 2.0 4.0 15.4 16.2 20.2 21.5 23.9 23.5 23.7 24.2 24.4 26.3 Other labor income.................................. .6 .4 .7 3.8 16.6 18.7 20.8 23.3 26.1 25.0 25.7 26.5 27.3 28.0 Proprietors’ income......................................... 15.1 5.9 17.5 37.5 52.3 57.3 60.7 60.7 62.9 61.8 62.6 63.4 63.7 63.6 Business and professional........................... 9.0 3.3 11.1 24.0 40.2 42.4 44.8 46.3 47.8 47.2 47.8 48.0 48.2 48.3 Farm......................................................... 6.2 2.6 6.4 13.5 12.1 14.8 15.9 14.4 15.1 14.6 14.8 15.4 15.5 15.2 Rental income of persons................................ 5.4 2.0 3.5 9.4 18.0 19.0 19.8 20.3 21.0 20.7 20.9 21.0 21.2 21.4 Corporate profits and inventory valuation adjustment.................................................... 10.5 -1.2 15.2 37.7 66.3 76.1 83.9 80.4 89.1 83.8 89.2 91.6 91.8 90.1 Profits before tax......................................... 10.0 1.0 17,7 42.6 66.8 77.8 85.6 81.6 92.3 88.9 91.8 92.7 95.7 96.0 Profits tax liability................................... 1.4 .5 1.6 17.8 28.3 31.3 34.6 33.5 41.3 39.8 41.1 41.5 42.8 43.0 Profits after tax........................................ 8.6 .4 10.1 24.9 38.4 46.5 51.0 48.1 51.0 49.1 50.7 51.2 52.8 53.0 Dividends............................................. 5.8 2.0 4.4 8.8 17.8 19.8 21.7 22.9 24.6 23.6 24.4 25.2 25.4 25.4 Undistributed profits........................... 2.8 -1.6 5.7 16.0 20.6 26.7 29.3 25.2 26.3 25.5 26.3 26.0 27.5 27.7 Inventory valuation adjustment................. .5 -2.1 -2.5 -5.0 -.5 -1.7 -1.7 -1.2 -3.1 -5.1 -2.7 -1.0 -3.8 -5.9 Net interest...................................................... 4.7 4.1 3.2 2.0 15.8 18.2 20.8 23.3 26.3 25.0 25.8 26.7 27.6 28.4 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

JUNE 1969 □ NATIONAL PRODUCT AND INCOME A 67 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1968 1969 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968 I II III IV I* Gross national product.................................... 103.1 55.6 124.5 284.3 632.4 684.9 747.6 789.7 860.6 831.2 852.9 871.0 887.4 903.3 Less' Capital consumption allowances......... 7.9 7.0 8.2 18.3 56.1 59.8 64.1 69.2 74.3 72.3 73.7 74.9 76.2 77.5 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 72.8 74.8 76.7 79.0 81.2 Business transfer payments.................. .6 ,7 .5 .8 2.5 2.7 3.0 3.1 3.3 3.2 3.3 3.3 3.3 3.3 Statistical discrepancy..................... .7 .6 .4 1.5 -1.3 -3.1 -3.3 -3.5 -4.8 -4.7 -3.6 -5.3 -5.5 -6.4 Plus: Subsidies less current surplus of gov­ ernment enterprises............ -.1 .1 .2 1.3 1.3 2.3 1.6 .7 ,5 .7 1.0 .6 .9 Equals: National income.................................. 86.8 40.3 104.2 241.1 518.1 564.3 620.8 652.9 712.8 688.1 705.4 722.5 735.1 748.7 Less: Corporate profits and inventory valu­ ation adjustment................ 10.5 -1.2 15.2 37.7 66.3 76.1 83.9 80.4 89.1 83.8 89.2 91.6 91.8 90.1 Contributions for social insurance. ... .2 .3 2.8 6.9 27.9 29.6 38.0 41.9 46.9 45.8 46.5 47.4 47.8 51.8 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 52.5 55.0 56.3 57.5 59.0 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 24.9 25.7 26,2 26.7 27.2 Dividends.............................................. 5.8 2.0 4.4 8.8 17.8 19.8 21.7 22.9 24.6 23.6 24.4 25.2 25.4 25.4 Business transfer payments.................. .6 .7 .5 .8 2.5 2.7 3.0 3.1 3.3 3.2 3.3 3.3 3.3 3.3 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 497.5 538.9 586.8 628.8 685.8 662.7 678.1 694.3 708.2 721.7 Less: Personal tax and nontax payments,. .. 2,6 1.5 3.3 20.7 59.4 65.7 75.3 82.5 96.9 88.3 91.9 101.6 105.8 112.5 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 438.1 473.2 511.6 546.3 589.0 574.4 586.3 592.7 602.4 609.2 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 411.9 444.8 478.6 506.2 548.2 533.5 542.3 555.6 561.6 572.3 Personal consumption expenditures. 77.2 45.8 80.6 191.0 401.2 432.8 465.5 492.2 533.8 519.4 527.9 541.1 546.8 557.4 Consumer interest payments............ 1.5 .5 .9 2.4 10.1 11.3 12.5 13.1 13.7 13.4 13.6 13.8 14.0 14.2 Personal transfer payments to for­ eigners ........................................ .3 .2 .2 .5 .6 .7 .6 .8 .7 .7 .8 .7 .7 .7 Equals: Personal saving.............................. 4.2 -.9 11.0 13.1 26.2 28.4 32.9 40.2 40.7 40.8 44.0 37.1 40.9 36.9 Disposable personal income in constant (1958) dollars...................................................... 150.6 112.2 190.3 249.6 407.9 435.0 459.2 478.0 497.5 491.8 497.1 499.2 501.7 502.8 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted quarterly totals at annual rates. See also Noth to table opposite. PERSONAL INCOME (In billions of dollars) 1968 1969 Item 1967 1968 Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr.® Total personal income......................... 628.8 685.8 672.6 678.2 683.7 689.2 694.1 699.7 703.2 708.0 713.5 716.1 171.2 727.7 730.5 Wage and salary disbursements.......... 423.4 463.5 453.2 457.5 462.2 465.4 468.7 472.8 474.9 478.9 483.3 486.5 490.4 495.7 497.4 Commodity-producing industries... 166.6 180.6 176.7 179.3 179.9 180.6 i8i.i 183,3 184.7 186.1 188.5 189.2 190.4 193.3 193.6 Manufacturing only..................... 134.1 145.4 141.6 144.3 145.6 146.0 146.3 147.8 148.8 149.7 151.1 151.9 151.8 154.6 154.7 Distributive industries............ 100.5 109.4 106.9 107.4 109.7 109.9 111.2 H2.1 112.1 113.3 113.2 114.8 116.0 117.1 117.7 Service industries............................ 70.0 77.2 75.5 76.1 77.0 77.5 78.2 78.8 79.1 79.8 80.7 81.6 82.6 83.3 83.6 Government.................................... 86.3 96.3 94.2 94,7 95.5 97.4 98.2 98.6 99.0 99.6 100.9 100.8 101.4 102.0 102.5 Other labor income............................ 23.3 26.1 25.5 25.7 26.0 26.3 26.5 26.8 27,0 27. 3 27.6 27.8 28.0 28.3 28.5 Proprietors’ income........................ 60.7 62.9 62.4 62.6 62.7 63.1 63.4 63.7 63.7 63.7 63-8 63.8 r63.6 63.4 63.5 Business and professional............... 46.3 47.8 47.6 47.8 47.9 48.0 48.0 48,0 48.1 48.2 48.3 48.4 M8.4 48.3 48.4 Farm................................................ 14.4 15.1 14.8 14.8 14.8 15.1 15.4 15.7 15.6 15.5 15.5 15.4 15.2 15.1 15.1 Rental income..................................... 20.3 21.0 20.8 20.9 20.9 21.0 21.0 21.1 21.2 21.2 21.3 21.3 21.4 21.5 21.5 Dividends........................................... 22.9 24.6 24.3 24.7 24.3 25.0 25.2 25.3 25.3 25.4 25.5 25.3 25.4 25.5 25.6 Personal interest income..................... 46.8 52.1 50.8 51.3 51.9 52,4 52.9 53.4 54.0 54.3 54.7 55.1 '55.5 56.1 56.5 Transfers payments............................ 51.7 58.6 58.1 58.2 58.5 59.1 59.6 59.9 60.4 60.8 61.0 61.7 62.4 62.9 63.4 Less; Personal contributions for social insurance......................................... 20.4 22.9 22.6 22.8 22.9 23.1 23.2 23.3 23.4 23.5 23-5 25.4 25.5 25.6 25.7 Nonagricultural income............. 609.3 665.4 652.5 658.1 663.4 668,7 673,3 678.6 682.2 687.0 692-5 695.1 100.3 707.0 709.9 Agriculture income.............................. 19.5 20.5 20.1 20.2 20.2 20.5 20.8 21.1 21.0 21.0 21-0 21.0 20.8 20.7 20.7 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 □ JUNE 1969 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1966 1967 1968 Transaction category, 1964 1965 1966 1967 1968 or sector IV I II HI IV I II III IV I. Savings and investment 1 Gross national saving.................1..6..0....3 181.6 196.7 192.1 214.6 202.5 188.2 185.8 193.2 200.2 202.4 211.1 217.9 225.9 1 2 Households................................... 98.3 108.9 118.6 129.6 141.6 125.3 125.3 125.4 129.6 137.1 138.0 144.6 140.6 143.4 2 3 Farm and noncorp, business........ 14.5 15.2 15.9 16.8 18.0 17.0 17.1 17.0 17.0 16.2 17.4 17.7 17.9 18.2 3 4 Corporate nonfin. business.......... 50.5 56.6 61.1 61.5 64.1 63.9 60.2 60.6 61.8 63.5 60.2 64.2 66.1 65.9 4 5 U.S. Government......................... -4.3 -J -.6 -14.1 -6.5 -4.0 -12.7 -15.3 -14.1 -14.3 -10.0 -11.9 -3.7 -.2 5 6 State and local govt...................... -1.4 -2.4 -2.7 -5.6 -5.2 -3.7 -5.7 -6.7 -5.3 -4.6 -5.6 -5.1 -.53 -4.9 6 7 Financial sectors........................... 2.7 3.5 4.5 3.8 2.5 4.1 4.0 4.7 4.3 2.2 2.4 1.5 2.4 3.5 7 8 Gross national investment................. 158.0 178.2 193.1 188.1 209.0 197.8 184.4 179.4 190.7 196.8 196.0 206.7 212.9 220.7 8 9 Consumer durable goods............. 59.2 66.3 70.5 72.6 82.5 71.1 69.8 72.4 73.1 74.2 79.0 81.0 85.1 85.1 9 10 Business inventories..................... 5.8 9.6 14.7 6.1 7.7 19.8 8.4 2.3 5.3 8.3 2.1 10.8 7.5 10.6 10 11 Gross pvt. fixed investment......... 88.2 98.5 106.1 108.2 119.9 105.9 104.6 105.4 109.3 113.5 117.6 116.5 119.6 126.0 11 12 Households................................ 23.0 22.9 21,5 20.3 25.3 18.9 17.6 18.4 21.5 23.6 25.0 25.3 25.2 25.9 12 13 Nonfinan. business................... 64.3 74.8 83.6 87.0 93.4 86.0 86.2 86.1 86.7 88.9 91.4 90.0 93.2 98.9 13 14 Financial sectors....................... .9 .8 1.0 .9 1.2 1.0 .8 .8 1.1 .9 1.2 1.2 1.2 1.2 14 15 Net financial investment........... 4.7 3.7 1.8 1.2 -l.l 1.0 1.6 -.6 2.9 .7 -2.8 -1.6 .8 -.9 15 16 Discrepancy (1-8)............................. 2.3 3.5 3.6 4.0 5.5 4.7 3.8 6.4 2.5 3.4 6.5 4.4 5.0 5.2 16 II. financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 67.0 72.3 69.9 83.1 99.2 49.9 74.3 44.3 104.6 108.9 101.2 84.8 119.2 90.1 17 18 Loans and short-term securities.... 26.4 33.1 27.4 27.2 32.6 29.8 33.8 -16.1 46.8 44.2 42.1 24.3 40.6 22.2 18 19 Long-term securities and mtgs......... 40.6 39.2 42,5 55.9 66.6 20.0 40.6 60.4 57.8 64.7 59.1 60.5 78.6 67.9 19 By sector 20 U.S. Government.......................7....1... 3.6 6.3 12.7 16.6 2.9 8.0 -21.3 34.7 29.2 28,2 13.8 31.9 -7.6 20 21 Short-term mkt. securities........... 4.0 3.5 2.2 6.4 .6 10.1 9.9 -35.7 30.9 20.7 18.1 -1.3 2.9 -17.4 21 22 Other securities............................. 3.0 .2 4.1 6.2 16.0 -7.2 -1.9 14.5 3.9 8.5 10.1 15.1 29.0 9.8 22 23 Foreign borrowers............................ 4.4 2.6 1.5 4.0 2.9 1.2 5.5 3.7 3.9 2.8 4.3 1.9 2.2 3.1 23 24 Loans............................................. 3.7 1.9 1.0 2.7 1.6 1.0 4.5 2.7 2.2 1.4 2.8 1.4 1.2 1.0 24 25 Securities....................................... .7 .8 .5 1 .3 1.3 .2 1.0 1.0 1.6 1.4 1.5 .5 1.0 2.1 25 26 Pvt. domestic nonfin. sectors........... 55.5 66.0 62.0 66.4 79.7 45.7 60,8 61.9 66.0 76.9 68.6 69.1 85.2 94.6 26 27 Loans............................................ 18.7 27.7 24.1 18.0 30.4 18.7 19.4 16.9 13.7 22.1 21.1 24.3 36.6 38.6 27 28 Consumer credit......................... 8.0 9.4 6.9 4.4 Jl.l 4.6 4.1 4.0 4.9 4.8 9.0 9.4 12.9 11.8 28 29 Banti loans n.e.c........................ 6.5 13.6 9.8 9.1 12.3 5.2 6.7 11.7 3.8 14.4 5.4 9.8 12.2 22.1 29 30 Other loans................................ 4.1 4.7 7.4 4.5 7.0 9.0 8.6 1.3 5.1 2.9 6.8 5.1 11.6 4.7 30 31 Securities and mortgages............. 36.9 38.3 37.9 48.4 49.2 27.0 41.4 44.9 52.3 54.8 47.5 44.9 48.6 56.0 31 32 State and local obligations......... 5.9 7.3 6.0 10.1 11.1 6.1 10.3 11.5 7.5 11.2 9.3 6.3 14.3 14.6 32 33 Corporate securities................... 5.4 5.4 11.4 17.4 12.5 6.6 14.3 15.8 21.4 18.1 12.8 12.8 10.3 14.0 33 34 1- to 4-family mortgages........... 15.7 16.2 11.0 11.5 15.4 8.1 8.9 8.3 13.7 15.1 15.8 15.1 14.3 16.3 34 35 Other mortgages........................ 10.0 9.4 9.6 9.4 10.3 6.2 7.9 9..3 9.8 10.4 9.6 10.8 9.7 11.2 35 36 Net sources of credit (=• line 17)........ 67.0 72.3 69.9 83.1 99.2 49.9 74.3 44.3 104.6 108.9 101.2 84.8 119.2 90.1 36 37 Chg. in U.S. Govt, cash balance.. .2 -1.0 -.4 1.2 -1.2 1.2 -.5 -14.8 13.4 6.8 -7.2 -15.0 25.6 -8.1 37 38 U.S. Govt, lending....................... 3.8 4.7 7.9 4.5 8.1 2.8 6.1 -.8 5.0 8.0 12.2 9.0 6.2 5.1 38 39 Foreign funds................................ 2.5 .8 -.9 5.4 2.7 -1.2 1.4 8.3 2.4 9.4 -1.3 -.7 1.8 11.2 39 40 Pvt. insur. & pension reserves.... 11.1 11.6 12.8 13.2 15.1 14.5 12.2 12.4 14.0 14.1 13.6 14.6 15.2 17.1 40 41 Sources n.e.c.................................. 5.7 7.1 7.7 5.8 12.1 -.8 1.8 6.0 11.5 3.9 17.9 23.6 15.4 -8.6 41 42 Pvt. domestic nonfin. sectors....... 43.8 49.0 42.8 53.0 62.3 33.5 53.3 33.1 58.5 66.9 66.0 53.3 55.2 73.4 42 43 Liquid assets............................. 33.0 43.4 23.9 49.1 53.2 22.1 54.4 38.4 58.7 44.8 40.7 36.5 58.9 76.5 43 44 Deposits................................. 35.3 40.4 22.7 50.9 45.3 21.2 61.5 51.7 56.2 34.1 31.9 29.9 51.6 67.6 44 45 Demand dep. and currency. 6.5 7.7 2.9 12.0 12.6 6.5 10.8 10.6 15.2 11.1 .1 13.4 8.7 28.4 45 46 Time and svgs. accounts... 28.8 32.7 19.8 39.0 32.6 14.6 50,7 41.0 41.0 23.0 31.8 16.5 42.9 39.2 46 47 At commercial banks.... 13.0 19.5 12.5 22.4 20.0 5.4 33.8 20.4 23.0 12.3 18.7 4.5 31.2 25.4 47 48 At savings instlt......... 15.8 13.2 7.3 16.6 12.7 9.3 16.9 20.6 18.0 10.7 13.1 12.0 11.8 13.8 48 49 Short-term U.S. Govt. sec.... -2.3 3.0 1.2 -1.8 7.9 .9 -7.1 -13.3 2.5 10.6 8.8 6.6 7.3 8.9 49 50 Other U.S. Govt. securities.... 3.1 .1 6.8 -1.2 .7 4.3 -11.2 -3.9 -3.3 13.7 2.6 6.9 -.8 -6.0 50 51 Pvt. credit mkt. instruments. .. 7.5 5.9 11.9 7.2 9.8 6.5 9.6 1.2 6.2 11.9 19.7 12.6 5.8 51 52 Less security debt...................... -.2 .3 -.2 2.2 1.4 -.6 -.5 2.5 3.1 3.5 -3.0 2.7 2.9 2.8 52 III. Direct lending in credit markets 53 Total funds raised........................... 67.0 72.3 69.9 83.1 99.2 49.9 74.3 44.3 104.6 108.9 101.2 84.8 119.2 90.1 53 54 Less change in U.S. Govt, cash.... .2 -1.0 -.4 1.2 -1.3 1.2 -.6 -14.9 13.4 6.7 -7.4 -15.0 25.5 -8.1 54 55 Total net of U.S. Govt, cash........... 66.8 73.3 70.3 81.9 100.5 48.7 74.9 59.1 91.2 102.2 108.6 99.8 93.7 98.3 55 56 Funds supplied directly to cr. mkts.. 66.8 73.3 70.3 81.9 100.5 48.7 74.9 59.1 91.2 102.2 108.6 99.8 93.7 98.3 56 57 Federal Reserve System............... 3.2 3.8 3.3 3.9 4.8 4.2 2.9 -.3 7.9 4.5 7.7 7.0 7.7 -3.2 57 58 Total.......................................... 3.4 3.8 3.5 4.8 3.7 4.3 5.2 2.9 3.7 6.9 4.3 6.5 .73 -3.2 58 59 Less change in U.S. Govt. cash. .2 * .2 .9 -1.1 .1 2.4 3.2 -4.2 2.4 -3.5 -.4 -.4 « 59 60 Commercial banks, net................. 21.8 29.3 17.9 35.9 38.9 6.8 41.9 40.3 37.2 24.6 23.7 34.3 45.1 52.3 60 61 Total.......................................... 22.4 29.1 17.4 36.4 38.9 7.9 39.7 22.3 54.8 28.9 19.6 20.5 71.2 44.4 61 62 Less chg. in U.S. Govt. cash... -1.0 -.5 .2 -.2 1.1 -3.0 -18.1 17.6 4.4 -4.0 -14.5 25.9 -8.1 62 63 Security issues....................... .6 .8 .1 .2 .3 * .8 .1 ♦ —• * .7 .2 .2 63 64 Nonbank finance, net................... 29.1 26.9 22.5 32.4 29.6 24.2 29.0 35.0 38.1 27.4 30.6 27.8 28.6 31.3 64 65 Total.......................................... 33.5 32.9 25.8 33,6 38.5 27.2 30.9 19.3 51.0 33.0 30.0 38.0 45.0 40.7 65 66 Less credit raised...................... 4.4 5.9 3.3 1.2 8.8 2.9 1.9 -15.7 12.9 5.7 -.7 10.3 16.3 9.4 66 67 U.S. Government......................... 3.8 4.7 7.9 4.5 8.1 2.8 6.1 -.8 5.0 8.0 12.2 9.0 6.2 5.1 67 68 Foreign.......................................... .6 -.1 -1.4 3.2 2.1 -1.6 3.3 3.6 .9 5.1 .4 -1.5 2.6 7.0 68 69 Pvt. domestic nonfin..................... 8.5 8.6 20.1 2.0 17.0 12.3 -8.1 -18.6 2.3 32.7 34.1 23.3 3.6 5.9 69 70 Households................................ 3.2 2.2 10.5 -4.0 3.1 1.9 -13.1 -18.1 -1.3 16.7 11.1 18.0 -10.8 -6.5 70 71 Business............................. 1.5 1.0 3.2 .4 7.7 2.5 1.2 -5.6 .2 5.9 11.4 5.8 6.5 6.1 71 72 State and local govts................. 3.7 5.8 6.2 7.8 7.7 7.3 3.2 7.7 6.5 13.7 8.5 2.3 10.8 9.1 72 73 Less net security credit............. -.2 .3 -.2 2.2 1.4 -.6 -.5 2.5 3.1 3.5 -3.0 2.7 2.9 2.8 73 Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 a FLOW OF FUNDS A 69 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1966 1967 1968 Transaction category 1964 1965 1966 1967 1968 or sector IV I II III IV I II III IV I. Demand deposits and currency 1 Net incr. in banking system liability. 7.< 7.< 2.< 14.' 13.2 8.8 8.2 -.s 29.‘1 21.f -8.’ l.( 34.8 25.8 1 2 U.S. Govt, deposits.......................... -l.C -.4 1.2 -1,2 1.2 -.6 -14.$ 13.x■ 6.: -7.' -15.C 25.5 -8.1 2 3 Other.............................................. 7.: 8.f 3.1I 13.5 14.5 7.4 8.1 14.1I 16.i1 15.( -i.: 15.S 9.x 33.9 3 4 Domestic sectors....................... 6.J 8.3 3.: 12.' 13.8 8.2 12.C> 11.1 15.. 11.’ 14.8 11.2 29.6 4 5 Households............................ 6.4 7. l.S 12.‘ 14.$ 8.: 13.t 14J 7.: 14.5 1.1 12. 27. ( 18.2 5 6 Nonfinancial business........... -2. -1.7 -1.5 1.2 -i.: -4.: -3.S 4.; -2.5 3.: 5.’ -9.2 5.5 6 7 State and local govts............. -.2 .€ i 3.: i.i -2.9 .7 -.8 1.9 7 8 Financial sectors................... .4 .7 12. 1.6 1.3 .9 .< .4 -J I.' 2.6 1.2 8 9 Mail float............................... .9 2.5 -.5 .1 -4,1 -.2 -2.C 2.4 2.1 -5.3 -4.9 -8.4 2.8 9 10 Rest of the world...................... .5 .3 -.3 .8 .7 -.6 -3.2 2.4 J 3.5 -l.C 1.2 -1.9 4.3 10 II. Time and savings accounts 11 Net increase—Total.......................... 30.4 33.8 20.3 40.8 32.5 15.5 52.3 45.4 42. ( 23.5 31.2 16.5 43.6 38.5 11 12 At commercial banks—Total. . . . 14.5 20. ( 13.3 23.? 20.1 6.2 35.1 23.7 23.’: 12.7 18.2 4.2 32.3 25.4 12 13 Corporate business................... 3.2 3.9 -.7 4.1 2.5 -4.6 10.0 -.9 3.7 3.7 -3.1 9.9 2.5 13 14 State and local govts................. 1.7 2.4 1.3 2.4 2.6 1.5 5.7 3.4 .6 .1 .5 1.4 4.9 3.7 14 15 Foreign depositors.................... 1.4 .6 .8 1.3 -.1 1.0 1.2 2.3 1.1 .8 -.7 -.4 1.0 -.1 15 16 Households................................ 8.2 13.3 11.9 15.8 14.9 8.5 18.C 17.9 18." 8.5 17.6 6.2 16.4 19.2 16 17 At savings institutions................. 15.9 13.0 7.1 17.C 12.4 9.3 17.2 21.7 18. J 10.7 12.9 12.3 11.3 13.2 17 18 Memo: Households total................. 23.9 26.5 19.2 32.4 27.6 17.8 35.0 38.6 36.7 19.2 30.8 18.2 28.2 33.0 18 III. U.S. Govt, securities 19 Total net issues.................................. 7.1 3.6 6.3 12.7 16.6 2.9 8.0 -21.3 34.7 29.2 28.2 13.8 31.9 -7.6 19 20 Short-term marketable................. 4.C 3.5 2.2 6.4 .6 10.1 9.9 -35.7 30.9 20.7 18.1 -1.3 2.9 -17.4 20 21 Other.............................................. 3.0 .2 4.1 6.2 16.0 -7.2 -1.9 14.5 3.9 8.5 10.1 15.1 29.0 9.8 21 22 Net acquisitions, by sector............... 7.1 3.6 6.3 12.7 16.6 2.9 8.0 -21.3 34.7 29.2 28.3 13.8 31.9 -7.6 22 23 Federal Reserve System............... 3.5 3.7 3.5 4.8 3.8 3.8 5.5 2.8 3.6 6.9 4.5 6.4 7.6 -3. 1 23 24 Short-term................................. 2.1 3.7 5.4 1.9 -6.6 12.4 -.1 -4.2 2.3 9.3 1.8 -5.7 -12.3 -10.4 24 25 Commercial banks....................... .4 -2.3 -3.5 8.8 2.8 -4.8 17.9 -.3 23.6 -5.9 4.7 -4.6 13.7 -2.4 25 26 Short-term marketable............. 3.9 -1.7 -4.5 4.6 1.4 -4.4 10.2 -7.2 18.3 -2.7 2-8 3.1 5.3 -5.5 26 27 Other direct............. *;....... -4.1 -1.4 1.1 1.4 .2 -.3 5.5 2.4 2.8 -5.2 1.0 -6.9 5.3 1.5 27 28 Nonguaranteed......................... .6 .8 * 2.8 1.2 -.1 2.2 4.4 2.5 2.1 .9 -.8 3.0 1.7 28 29 Nonbank finance........................ 2.0 -.8 .9 ♦ 1.8 .8 .2 -8.5 9.6 -1.4 8.3 2.3 4.1 -7.5 29 30 Short-term marketable............. 1.2 -.4 1.5 1.0 1.7 1.4 4.6 -10.7 10.6 -.4 6.7 1.8 4.9 -6.6 30 31 Other direct............................... .5 -.7 -1.0 -1.5 -.6 -.9 -5.2 .9 -.7 -1.1 -.5 -.1 -1.7 -.1 31 32 Nonguaranteed......................... .3 .3 .4 .5 .7 .4 .8 1.4 -.3 .1 2.1 .6 1.0 -.8 32 33 Foreign.......................................... .5 -.1 -2.6 2.1 -.5 -2.1 2.6 1.9 -1.4 5.2 -.7 -3.7 .1 2.5 33 34 Short-term................................. .1 -.4 -.8 1.6 -2.5 .7 3.1 .7 -2.1 4.8 -1.8 -6.8 -1.5 .2 34 35 Pvt. domestic nonfinan. sector... .8 3.1 8.0 -3.0 8.6 5.2 -18.2 -17.2 -.8 24.4 11.4 t3.5 6.4 2.9 35 36 Short-term marketable............. -3.2 2.4 .7 -2.7 6.6 -7.9 -14.4 1.8 9.7 8.6 6.3 6.5 4.9 36 37 Other direct............................... 2.8 — 1.2 2.2 -1.6 -3.1 5.8 -9.6 -3.0 -1.8 8.1 .1 -1.8 -2.5 -8.4 37 38 Nonguaranteed......................... .4 1.3 4.6 .4 3.8 -1.4 -1.5 -.9 -1.5 5.6 2.5 8.7 1.6 2.4 38 39 Savings bonds—Households.., .9 .6 .6 .9 1.3 .9 .8 1.1 .7 .9 .2 .3 .8 4.0 39 IV. Other securities 40 Total net issues, by sector................. 14.6 16.2 18.7 29.6 25.9 12.5 28.1 28.1 31.4 30.8 24.5 21.1 26.4 31.5 40 41 State and local govts..................... 5.9 7.3 6.0 10.1 11.1 6.1 10.3 11.5 7.5 11.2 9.3 6.3 14.3 14.6 41 42 Nonfinancial corporations........... 5.4 5.4 11.4 17.4 12.5 6.6 14.3 15.8 21.4 18.1 12.8 12.8 10.3 14.0 42 43 Commercial banks........................ .6 .8 . 1 .2 .3 ♦ .8 . 1 ♦ ♦ .7 .2 .2 43 44 Finance companies...................... 2.1 1.9 .8 .6 .7 -.4 1.7 -.3 1.0 .9 .8 .6 .7 44 45 Rest of the world......................... .7 .8 .5 1.3 1.3 .2 1.0 1.0 1.6 1.4 1.5 .5 1.0 2.1 45 46 Net purchases................................... 14.6 16.2 18.7 29.6 25.9 1.25 28.1 28.1 31.4 30.8 24.5 21.1 26.4 31.5 46 47 Households.................................... 1.5 .1 2.9 -2.5 -1.0 -3.5 -4.0 -6.6 -.9 1.3 9.0 3.0—11.4 -4.4 47 48 Nonfinancial corporations........... .2 .7 .8 .7 . 1 .8 .7 .7 .8 .7 -, 1 . 1 .2 . 1 48 49 State and local govts..................... 2.8 2.8 4.1 6.0 4.1 5.0 7.0 6.9 4.8 5.5 4.0 3.7 4.7 .4.1 49 50 Commercial banks........................ 3.7 5.0 2.4 9.8 8.4 -.7 9.6 14.5 4.8 10.3 5.0 4.0 12.5 11.9 50 51 Insurance and pension funds....... 7.5 9.5 9.5 13.5 15.0 8.6 13.9 11.0 14.6 14.4 14.3 14.2 14.0 17.4 51 52 Finance n.e.c................................. -.8 -1.7 -2.2 -1.1 -4.3 t.5 -1.9 -2.8 2.1 -1.9 -10.3 -7.0 2.8 -2.7 52 53 Security brokers and dealers... -.1 .1 . 1 -.5 2.6 -1.9 -2.9 2.6 2.5 -1.8 -5.7 8.1 -2.6 53 54 Investment cos., net.................. -.8 -1.5 -2.4 -1.2 -3.8 -1.2 -.1 ♦ -.5 -4.4 -8.6 -1.3 -5.4 -.1 54 55 Portfolio purchases............... 1.1 1.6 1.3 1.6 1.9 2.5 3.0 1.3 3.1 -i.i -1.4 3.4 1.4 4.2 55 56 Net issues of own shares.... 1.9 3.1 3.7 2.8 5.7 3.6 3.1 1.3 3.6 3.3 7.1 4.7 6.8 4.3 56 57 Rest of the world......................... -.1 -.4 .9 1.0 2.0 .4 .5 1.3 2.2 * .7 1.9 2.1 3.2 57 V. Mortgages 58 Total net lending............................... 25.3 25.5 19.6 21.9 25.$ 13.2 17.3 19.0 24.8 26.3 25.5 25.9 24.0 28.0 58 59 1- to 4-family................................ 15.4 16.1 10.0 12.5 15.5 6.9 9.4 9.7 15.0 16.0 15.9 15.1 14.2 16.8 59 60 In process.............................. -.3 * -.9 1.0 .2 -1.2 .5 1.4 1.3 .9 .1 ♦ ♦ .6 60 61 Disbursed.................................. 15.7 16.2 n.o II.5 15.4 8.1 8.9 8.3 13.7 15.1 15.8 15,1 14.3 16.3 61 62 Other.............................................. 10.0 9.4 9.6 9.4 10.3 6.2 7.9 9.3 9.8 10.4 9.6 10.8 9.7 11.2 62 63 Net acquisitions................................ 25.3 25.5 19.6 21.9 25.8 13.2 17.3 19.0 24.8 26.3 25.5 25.9 24.0 28.0 63 64 Households.................................... -.2 -.9 -.4 -.6 * .5 -.5 -1.7 -.4 .2 1.2 .4 -.2 -1.6 64 65 U.S. Government......................... .2 1.0 3.4 2.7 3.3 1.8 2.4 1.6 3.1 3.7 4.4 4.3 .24 2.2 65 66 Commercial banks........................ 4.5 5.6 4.6 4.6 6.6 3.6 2.0 3.5 6.0 6.7 6.6 6.5 5.9 7.6 66 67 Savings institutions....................... 14.8 13.1 6.6 10.8 12.2 3.7 6.8 10.3 13.1 12.9 10.6 11.7 12.0 14.4 67 68 Insurance...................................... 5.1 5.5 5.1 3.1 2.5 3.6 5.2 2.9 2.0 2.3 2.3 2.0 2.7 2.9 68 69 Mortgage companies.................... .4 .5 -.6 .4 .6 -1.1 .3 1.3 -.2 .1 -.3 .4 .4 1.7 69 VI. Bank loans n.e.c. 70 Total net borrowing........................... 8.7 16.4 8.2 6.5 14.1 2.0 1.7 7.7 6.7 9.8 4.0 11.1 15.0 26.3 70 71 Nonfinancial business................... 5. 1 12.2 9.9 7.4 9.1 4.7 5.8 11.0 2.0 10.8 4.0 7.6 6.8 18.1 71 72 Nonbank finance................ .5 2.4 -1.4 -2.4 2.1 -2.7 -4.3 -3.3 2.1 -4.0 -1.0 1.4 3.2 4.7 72 73 Households.................................... 1.4 1.3 -.1 1.7 3.2 .5 .9 .7 1.7 3.5 1.4 2.2 5.3 4.0 73 74 Rest of the world.......................... 1.7 .4 -.2 -.3 -.3 -.5 -.6 -.8 .8 -.5 -.4 -.1 -.3 -.5 72 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 □ JUNE 1969 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1967 1968 Item 1966 1967 1968* III IV I II III 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*...................... 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........................ -38,963 -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................................ -7,074 -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 services i.................................. 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 goqds, 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, 2 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 liquid assets in U.S.............................. 2,532 3,185 8,384 766 352 1,410 2.485 1,833 2,656 Long-term investments...................................... 2,156 2,344 5,795 359 310 1,219 1,437 1,291 1,847 Short-term claims............................................... 296 388 666 174 40 -21 268 234 185 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 -23 -12 -5 15 —6 -3 Other specific transactions............................. -12 5 -2 -12 -10 -27 -6 41 -10 Other nonconvertible, nonmarketable, medium-torm U.S. Govt, securities 3............. -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 (-1+2+3+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 baste 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 1,509 423 256 272 314 -661 -54 350 365 Before seasonal adjustment.................... 266 -3,405 1,617 -25 -1,396 90 1,563 73 -109 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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» III IV I II III 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 — 181 904 — 137 —571 -1,076 Gold............................................................... 571 1,170 1,173 92 1,012 1,362 22 -74 -137 Convertible currencies.................................. — 540 -1,024 -1,183 -462 -1,145 -401 267 —474 — 575 IMF gold tranche position.......................... 537 -94 -870 — 5 -48 -57 -426 -23 -364 Change tn liquid liabilities to all foreign accounts 789 3,SJ9 722 1,387 2,082 -642 64 1,004 296 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities4.............................................. -945 455 -10 125 212 100 * -49 -61 Marketable U.S. Govt, bonds and notes'*. -245 48 -390 -6 -3 -359 -3 -26 -2 Deposits, short-term U.S. Govt, securi­ ties, etc............................................... -582 1,537 -2,707 162 1,108 -1,112 -2,187 38 554 IMF (gold deposits)..................... 177 22 — 3 4 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 US. 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 * 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 * Imports 2 Export surplus Period 1966 1967 1968 1969 1966 1967 1968 1969 1966 1967 1968 1969 Month; Jan........ 2,298 2,639 2,814 32,093 1,966 2,317 2,687 32,018 332 322 127 75 Feb..................... 2,353 2,582 2,775 32,297 2,013 2,216 2,592 32,655 339 366 184 -359 Mar.................... 2,530 2,525 52,439 33,196 2,050 2,166 32,589 32,981 480 359 -150 215 Apr.................... 2,317 2,608 32,856 3,355 2,091 2,198 32,604 3,177 226 410 252 178 May........... 2,416 2,549 2,742 2,061 2,118 2,755 355 432 -13 June............... 2,485 2,582 2,871 2,102 2,184 2,792 ............... 383 398 79 ............... July.................... 2,469 2,601 2,859 2,216 2,245 2,726 253 357 134 Aug.................... 2,460 2,566 32,949 2,137 2,145 32,871 324 421 79 Sept........... 2,503 2,597 33,225 2,288 2,198 22,954 214 399 271 Oct..................... 2,616 2,415 32,634 2,303 2,254 32,738 313 161 -104 Nov,................... 2,491 2,671 2,975 2,195 2,396 2,886 296 275 89 Dec............ 2,467 2,677 2,979 2,196 2,493 2,925 271 184 54 Quarter: 7,180 7,745 8,028 7,586 6,029 6,698 7,867 7,654 1,152 1,047 161 -68 II....................... 7,217 7,739 8,468 6,253 6,500 8,151 964 1,240 317 in...................... 7,431 7,764 9,033 6,641 6,588 8,550 790 1,177 483 IV....................... 7,575 7,763 8,588 6,694 7,143 8,549 881 620 39 Year 4................... 29,403 31,011 34,117 ............2..5.,617 26,928 33,117 ..............3.,786 4,083 1,001 ............... 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 * 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 beentries into bonded warehouses. cause of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 72 U.S. GOLD TRANSACTIONS □ JUNE 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) 1968 1969 Area and country 1960 1961 1962 1963 1964 1965 1966 1967 1968 I II III IV I Western Europe: Austria............................... -1 -143 -82 -55 -100 -25 Belgium.............................. -141 -144 -63 -40 -83 -58 -25 -33 France................................ -173 -456 -518 -405 -884 -601 600 220 240 140 50 Germany, Fed. Rep. of... -34 -23 -225 Ireland................................ -2 -2 -2 -52 -12 -32 -11 3 Italy.................................... 100 200 -80 -60 -85 -209 -184 -25 -76 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 -25 United Kingdom............... -550 -306 -387 329 618 150 80 -879 -835 -900 50 15 B O a th n e k r f .. o .. r . .. I . n .. t . i . . . .. S .. e ... t . t . le .. m .... e .. n .. t . s . . - - 3 9 6 6 - - 5 2 3 3 -12 i -6 -35 -49 16 -47 -1 -22 -16 -8 -1 Total........................... -1,718 -754 -1,105 -399 -88 -1,299 -659 -980 -669 -1,195 163 213 150 -52 Canada.................................. 190 200 150 50 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 10 29 7 Venezuela........................... —25 Other................... -42 -17 -5 -11 -9 -13 -6 11 -40 -28 -7 -3 -3 -7 Total.................... -100 -109 175 32 56 17 -41 9 -65 -28 -12 -18 -8 -7 Asia: Iraq.................................... -30 -10 -4 -21 -42 -14 -28 Japan.................................. — 15 —55 Lebanon............................. -21 -32 -11 -11 -1 -95 -74 -21 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 -15 -26 -18 -6 5 Total........................... -113 -101 -93 12 3 -24 -86 -44 -366 -143 -146 -71 -6 5 All other*................. -38 -6 -1 -36 -7 -16 -22 1-166 1-68 -1 -16 1-51 -1 -2 Total foreign countries......... -1,969 -970 -833 -392 -36 -1,322 -608 -1,031 -1,118 -1,317 -10 73 136 -57 Inti. Monetary Fund........... 2 300 150 3-225 <177 <22 4-3 48 <-11 ............ 4 1 Grand total................ -1,669 -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 -1,309 -22 73 136 -56 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 * Represents gold deposited by the IMF; see note 1(b) to Table 4. In million in 1956, and $300 million in 1959 and in i960) 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

JUNE 1969 □ U.S. GOLD STOCK; POSITION IN THE IMF A 73 4. U.S. GOLD STOCK, HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES, ANO RESERVE POSITION IN IMF (In millions of dollars) Gold stock t Con­ Reserve Gold stock 1 Con­ Total vertible position Total vertible Reserve End of year reserve foreign in End of month reserve foreign position assets Total t Treasury currencies IMF 3 assets Total J Treasury c c u ie rr s e n 3 * IM in F 3 1956........................ 23,666 22,058 21,949 1,608 1968—May............ 14,348 10,468 10,384 3 386 494 1957....................... 24,832 22.857 22,781 11975 June........... 141063 161681 101367 2 479 903 1958........................ 22,540 201582 20,534 1,958 July............ 14 ,'366 161676 101367 2r773 917 1959........................ 21,504 19^507 191456 11997 Aug............. 14.427 10^681 101367 2,817 929 I960........................ 19'359 17,804 17,767 1,555 Sept............ 141634 10,755 161367 2,953 926 Oct............. 14,427 10,788 10,367 2 703 936 1961........................ 18.753 16,947 16,889 116 1,690 Nov.. 151660 10,897 101367 3,655 1,108 1962........................ 17’220 161057 151978 99 1,064 Dec............. 15,710 10,892 10,367 3^528 1,290 1963........................ 16,843 15,596 151513 212 1,035 1964........................ 16,672 151471 151388 432 '769 1969—Jan.............. 15,454 10,828 10,367 3,338 1 288 1965........................ 15,450 413,806 ♦13,733 781 4 863 Feb............. 15^499 10^801 101367 3’399 1 299 Mar............ 15,758 10,836 10,367 31601 1 *321 1966........................ 14,882 13,235 13,159 1,321 326 Apr............. 151948 101936 101367 3,624 1 388 1967........................ 14', 830 12,065 11,982 2,345 420 May............ 16,070 11,153 10,367 3,474 1,443 1968........................ 15,710 10,892 10,367 3,528 1,290 1 Includes (a) gold sold to the United States by the International Mon­ * Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 3 In accordance with IMF policies the United States has the right to draw foreign currencies equivalent to its reserve position in the IMF vir­ Note.—See Table 18 for gold held under earmark at F.R. Banks for tually automatically if needed. Under appropriate conditions the United foreign and international accounts. Gold under earmark is not included States could draw additional amounts equal to the U.S. quota. See Table 5. in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) 1 Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S, transactions with IMF Transactions by U.S. reserve Period ^ P d a o y o m ll » a f e r n s- ts - y s g N I a M o l e e ld t s F ' 1 y T t c f i r o c o u a i r n r e n e r s s s e ig a n i 2 n n c ­ - r I i M d n o c F i o l n la m n r e s e t D d ra o o w o ll t a f i h n w r e s g i r s t h c o I u M n R m t F r e i e i e p n n s a t y s ­ c T ha o n ta g l e Amount P q e U u r o . o S c f t e . a nt p p i ( e n e o r n s i I o d M it d io o ) F n f 3 doUars 1946—1957............................. 2,063 < 594 -45 -2,664 827 775 775 28 1,975 1958—1963........................... 1,031 150 60 -1,666 2,740 2 3i5 3,090 75 1,035 1964...................................... 525 18 -282 5 266 3,356 81 769 1965........................................ 435 12 -282 165 3’,521 85 5 863 1966........................................ 776 680 15 -159 j 1,313 4,834 94 326 1967........................................ 20 -114 —94 4,740 92 420 1968.................... -84 20 —806 -870 3,870 75 1,290 1968—May............................. 2 —7 —5 4,666 90 494 June............................ -1 -408 -409 4,257 83 903 July............................. 4 -18 -14 4,243 82 917 Aus................. -1 -11 — 12 4,231 82 929 Sect.. 3 3 4,234 82 926 2 -12 — 10 4,224 82 936 Nov............................. -125 -1 -45 -172 4,052 79 1,108 Dec.............................. -159 4 -27 -182 3,870 75 1,290 1969—Jan............................... 2 2 3,872 75 1,288 Feb.............................. 2 -13 — 11 3,861 75 K299 Mar............................. 2 -24 -22 3,839 74 1.321 Apr.............................. 1 -68 -67 3,772 73 1,388 May............................ I -56 -55 3,717 72 1,443 1 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 (seo 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 doUars (1948). sent repurchase of dollars, including dollars derived from charges on 3 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 eflective 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& 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. □ JUNE 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 organizations 5 Officialinstitutions 3 Banks and other foreigners Non­ End Short­ market­ Short­ Short­ of Total 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/ 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......... 1 (2 2 0 1 , , 9 0 9 27 4 8 8 0 0 0 0 ............. 8 80 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 10 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 7 7 , , 5 5 9 9 1 8 7 7 , , 0 0 4 4 8 8 5 5 4 5 3 0 1 1, , 5 5 4 2 1 5 7 7 5 5 0 0 7 79 7 1 5 122,853 800 800 11,830 10,940 890 8,275 7,759 516 1,948 703 1,245 196U......... 122,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1,245 1962».......... 1 1 2 2 4 4 , , 0 0 6 6 8 8 8 8 0 0 0 0 ............. 8 8 0 0 0 0 1 1 2 2 , , 7 7 4 1 8 4 1 11 1 , , 9 9 6 9 3 7 7 75 5 1 1 ............. 8 8 , , 3 3 5 5 9 9 7 7, , 9 9 1 1 1 1 4 4 4 4 8 8 2 2 , ,1 1 6 9 1 5 1 1 , , 2 2 5 8 0 4 9 9 1 1 1 1 19638 .... 1 1 2 26 6 , , 3 3 6 2 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 14 4 , , 3 3 5 8 3 7 1 1 2 2 , , 4 4 6 6 7 7 1 1, , 1 2 8 1 3 7 ''''70 70 3 3 ' 9 9 , , 2 2 1 0 4 4 8 8 , , 8 86 6 3 3 3 3 5 4 1 1 1 1 , , 9 9 6 6 5 0 8 8 0 0 8 8 1 1 , , 1 1 5 5 7 2 19648 ... 128,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 129,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965........... 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 19668......... 1 1 2 2 9 9 , , 7 9 7 0 9 4 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 8 0 0 0 0 1 13 3 , , 6 6 5 0 5 0 1 1 2 2 , , 4 53 8 9 4 8 8 6 6 0 0 2 25 5 6 6 1 1 4 4 , , 3 2 8 0 7 8 1 1 3 3 , , 6 8 8 5 0 9 5 5 2 2 8 8 9 90 0 5 6 5 58 8 1 0 3 3 2 2 5 5 133,271 1,033 233 800 15,653 14,034 908 711 15,894 15,336 558 691 487 204 1967».'.... 133,119 1,033 233 800 15,646 14,027 908 711 15,763 15,205 558 677 473 204 1968-Mar.1-. 32,482 l,04t 241 800 14,280 12,920 549 811 16,405 15,801 604 756 551 205 Apr.r. 32,988 1,045 245 800 14,374 13,014 549 811 16,745 16,133 612 824 619 205 May r. 33,150 1,047 247 800 13,615 12,247 557 811 17,867 17,257 610 621 454 167 Juner. 32,574 1,030 230 800 12,101 10,733 557 811 18,773 18,160 613 670 504 166 July.. 33,152 1,030 230 800 12,608 11,239 557 812 18,755 18,128 627 759 599 160 Aug.r. 33,603 1,030 230 800 12,437 11,155 520 762 19,381 18,745 636 755 595 160 Sept.r. 33,576 1,030 230 800 12,063 10,770 531 762 19,794 19,168 626 689 613 76 Oct.r.. 33,973 1,030 230 800 12,136 10,843 531 762 20,035 19,415 620 772 704 68 Nov.r. 35,602 1,030 230 800 13,688 12,397 529 762 20,116 19,492 624 768 700 68 Dec.r. J 1 3 3 3 3 . , 9 6 0 9 6 2 1 1 , , 0 0 3 30 0 2 2 3 3 0 0 8 8 0 0 0 0 1 1 2 2 , , 5 4 4 8 9 2 1 1 1 1 , , 3 3 1 1 9 9 4 5 6 29 2 7 70 0 1 1 1 1 9 9 , , 4 5 4 8 3 7 1 1 8 8 , , 9 9 7 7 8 8 6 46 0 5 9 7 73 4 7 0 6 6 9 9 8 8 4 3 2 9 1969-Jan. ’■.. 33,777 1,031 231 800 10,728 9,565 462 701 21,331 20,837 494 687 647 40 Feb.... 34,405 1,031 231 800 10,779 9,644 459 676 21,941 21,439 502 654 616 38 Mar.*. 35,056 1,031 231 800 10,775 9,640 459 676 22,601 22,106 495 649 611 38 1 Represents liability on gold deposited by the International Monetary securities are based on a July 31, 1963, benchmark survey of holdings and Fund to mitigate the impact on the U.S. gold stock of foreign purchases regular monthly reports of securities transactions (see Table 15). Data in­ for the purpose of making gold subscriptions to the IMF under quota in­ cluded on the second line are based on a benchmark survey as of Nov. 30, creases. 1968, and the monthly transactions reports. For statistical convenience, 2 U.S. Govt, obligations at cost value and funds awaiting investment the new series is introduced as of Dec. 31, 1968, rather than as of the obtained from proceeds of sales of gold by the IMF to the United States survey date. to acquire income-earning assets. Upon termination of investment, the The difference between the two series is believed to arise from errors in same quantity of gold can be reacquired by the IMF. reporting during the period between the two benchmark surveys, from 3 Includes Bank for International Settlements and European Fund. shifts in ownership not involving purchases or sales through U.S. banks 4 Derived by applying reported transactions to benchmark data; and brokers, and from physical transfers of securities to and from abroad. breakdown of transactions by type of holder estimated for 1960-63. It is not possible to reconcile the two series or to revise figures for earlier Includes securities issued by corporations and other agencies of the U.S. dates. Govt, that are guaranteed by the United States. 3 Principally the International Bank for Reconstruction and Develop­ Note.—Based on Treasury Dept, data and on data reported to the ment and the Inter-American Development Bank. Treasury Dept, by banks and brokers in the United States. Data correspond 6 Includes difference between cost value and face value of securities in to statistics following in this section, except for minor rounding dfferences. IMF gold investment account. Liabilities data reported to the Treasury Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury include the face value of these securities, but in this table the cost value of letters of credit and non-negotiable, non-interest-bearing special United the securities is included under “Gold investment.” The difference, which States notes held by other international and regional organizations. amounted to $34 million at the end of 1968, is included in this column. The liabilities figures are used by the Dept, of Commerce in the statistics ? Includes total foreign holdings of U.S. Govt, bonds and notes, for measuring the U.S. balance of international payments on the liquidity which breakdown by type of holder is not available. basis; however, the balance of payments statistics include certain adjust­ * Data on the two lines shown for this date differ because of changes in ments to Treasury data prior to 1963 and some rounding differences, and reporting coverage. Figures on the first line are comparable with those they may differ because revisions of Treasury data have been incorporated shown for the preceding date; figures on the second line are comparable at varying times. The table does not include certain nonliquid liabilities with those shown for the following date, to foreign official institutions that enter into the calculation of the official 9 Data included on the first line for holdings of marketable U.S. Govt. reserve transactions balance by the Dept, of Commerce. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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) End of period c f o o T u r o e n t i t a g ri l n e s E W u e ro s p te e r n 1 Canada A re m L p e u a r b t i i c l n ic a s n Asia Africa cou O n t t h ri e e r s 2 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—Mar.r.................................................................... 14,280 8 881 851 1,174 2 932 230 212 Apr. r.................. 14^374 8,624 1 040 i ’371 2’862 247 230 May r....................................................................... 13^615 7,919 1 ^035 1,380 2 795 251 235 Juner. 12,101 7,045 671 1,197 2’740 259 189 July r.......................................................................... 12^608 7’,05 4 709 1 528 2 848 284 185 Aus. r. 12’437 6,849 780 1 432 2*929 242 205 Sept.r...................................................................... 12,063 6,962 438 1,196 2^963 293 211 Oct.r,....................................................................... 12,136 6 854 416 1,262 3 120 271 213 Nov.r......................................................... 13^688 8^097 574 1 357 3*160 271 229 Dec.3 r........................................................................ i 1 1 1 2 2 , , 5 4 4 8 9 2 7 7, , 0 0 0 0 1 9 5 5 3 3 3 2 i 1 j3 ,3 5 5 4 4 3 3 , , 1 1 6 2 8 2 2 2 5 4 9 8 2 2 2 2 5 6 1969—Jan.r.......................................................................... 10,728 5,437 564 1 350 2 930 250 197 Feb............................................................................. 10^779 5,252 512 1*413 3*070 262 270 Mar.^......................................................................... 10,775 5,191 466 1,372 3,209 246 291 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, ana 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 nonmarketable U.S. Govt, 3 Sec note 9 to Table 6. securities with an original maturity of mor© 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 p n e d ri o o d f G to ra ta n l d 1 Europe Canada Am La e t r i i n c a Asia Africa O co t u h n e ­ r Total 1 IntlJ gio R n e a ­ l2 Total c O ia ff l i 3 ­ Other tries 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 4r f30,657 1,287 1,181 106 29,370 14,034 15,336 16,378 2,706 4,140 5,492 349 305 (30,505 1,273 1,175 98 29,232 14,027 15,205 16,194 2,709 4,134 5,541 349 305 1968--Apr.r....... 30,566 1,419 1,328 91 29,147 13,014 16,133 15,846 2,943 4,297 5,406 366 290 May r....... 30,758 1.254 1,168 86 29*504 12,247 17,257 16,148 3,055 4 287 5*339 371 304 June r............ 30,197 1,304 1,214 90 28*893 10,733 18,160 15,857 2*842 4 185 5*377 370 262 Julyr............. 30,766 1,399 1,294 105 29*367 11,239 18,128 15,802 2*894 4*513 5'516 397 247 Aua.r....... 31,295 1,395 1,288 107 29^900 11,155 18,745 16,073 3*140 4 425 5*642 356 264 Sept.r............ 31,351 1,413 1,308 105 29,938 10^770 19/68 16,552 2,747 4’284 5*668 405 280 Oct,r........ 31,762 1,504 1,390 114 30*258 10,843 19,415 16,374 3*015 4 411 5'804 369 283 Nov,r....... 33,389 I ,’500 1,386 114 31,889 12^397 19’492 17,692 3 Join 4 531 5'894 400 291 Dec.r....... 31,795 1 '498 1,388 110 30*297 11,319 18,978 16*238 2,796 4 657 5'956 361 289 1969--Jan.r........ 31,849 1,447 1.328 119 30,402 9,565 20,837 16,549 2,925 4 605 5,696 360 267 Feb................ 32,499 1,416 1,303 113 31,083 9,644 21,439 16,705 3,100 4,729 5,793 400 355 Mar.p............ 33,157 1,411 1,277 124 31,746 9,640 22,106 17,224 3,056 4 732 5,993 364 377 Apr.**............ 34,147 1,446 1,330 116 32,701 9,805 22,896 18,217 3,080 4,780 5,839 389 395 8a. Europe E p n e d ri o o d f Total Austria B L b e o u l u x g e r iu g m m 5 ­ - m De a n rk ­ 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 19674............. / 1«,378 231 601 243 99 1,326 2,218 170 1,948 589 449 437 150 492 1/16,194 231 632 243 99 1,330 2,217 170 1,948 589 449 r432 150 492 1968—Apr.... 15,846 181 513 177 141 1,202 2,134 156 1,534 330 399 394 . 134 565 Mayr.. 16,148 165 530 178 140 959 2,009 154 1,364 272 404 380 153 582 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.r. 16,073 150 382 149 156 977 1,779 184 1,109 313 485 323 187 543 Sept.'.. 16,552 131 360 152 155 1,144 1,931 197 1,051 271 438 321 183 536 Oct.'.. 16,374 153 424 130 158 1,170 1,865 183 1,077 275 395 319 165 534 Nov.r.. 17,692 134 326 123 166 1,229 3,564 187 840 259 381 342 167 499 Dec. r.. 16,238 162 313 146 176 1,383 2,640 183 729 276 448 345 158 453 1969—Jan.'. . 16,549 136 337 141 164 1,468 1,329 195 629 217 317 330 136 453 Feb... . 16,705 144 331 101 169 1,468 1,368 178 601 272 322 319 148 391 Mar.*,. 17,224 155 310 124 151 1,476 1,064 172 631 267 336 325 146 419 Apr.p.. 18,217 159 350 159 146 1,260 1,597 191 668 302 334 318 163 391 For notes sec 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. a JUNE 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 e d ri o o d f Sw la it n z d er­ Turkey U K d n i o n it m g ed ­ Y sl u a g vi 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 t s r h o te e p r r e n Total Ar ti g n e a n­ Brazil Chile Co b l i o a m­ Cuba Mexico 1966................. 1.805 43 3,817 37 234 8 40 3,883 418 299 261 178 8 632 1967*............... J 11 I, , 7 7 3 3 2 2 3 33 3 4 4 , , 8 6 5 6 1 7 2 2 3 3 7 70 3 6 6 8 8 4 44 4 4 4 , , 1 1 4 3 0 4 4 4 7 8 9 0 2 2 3 3 7 7 2 25 5 2 2 1 > 6 ® 6 9 9 7 7 2 23 0 1968—Apr..., 1,344 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 Juner... 1,741 25 7,027 51 297 5 40 4,185 429 258 245 198 8 789 July'... 1,863 22 7,053 20 401 6 32 4,513 642 248 254 179 8 817 Aug.r,.. 1,754 18 7,092 29 405 6 34 4,425 502 301 304 186 8 776 Sept. r... 1,964 30 7,104 26 511 7 41 4,284 445 250 302 210 8 769 Oct. r... 1,742 31 7,244 28 439 4 38 4,411 463 285 287 219 8 849 Nov. r».. 2,009 34 6,994 40 358 6 34 4,531 502 312 289 224 8 892 Dec.r... 2,155 29 6,200 33 357 5 48 4,657 479 257 323 249 8 974 1969—Jan/. .. 2,050 33 8,130 25 411 12 34 4,605 491 247 301 222 8 938 Feb....... 1,816 33 8,599 20 385 6 35 4,729 482 256 330 241 7 938 Mar?... 2,153 30 9,020 21 383 6 35 4,732 493 265 336 229 8 913 Apr.’... 1,960 28 9,733 24 386 8 41 4,780 520 291 345 223 8 884 8b. Latin America—Continued 8c. Asia E pe nd ri o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ O L re t . h A p e . . r B B e a r h m & am ud a a s A S n u N ti r l e i l n e th a s . m & A O m La t e h t r i e n ic r a Total M C la h a n i i n d n a ­ H Ko o n n g g India n d I e n o si ­ ­ a Israel 1966................. 150 249 161 707 522 177 104 17 5,250 36 142 179 54 115 1967*............... J170 274 147 793 523 233 111 18 5,492 36 215 354 34 125 (173 274 147 793 523 233 109 18 5,541 36 217 354 34 125 1968—Apr.'... 139 276 140 814 603 242 88 25 5,406 36 221 342 46 119 May r... 145 272 144 780 579 226 83 25 5,339 36 239 368 41 128 Juner... 153 278 138 742 592 233 97 25 5,377 36 248 384 74 127 July... 154 268 133 797 623 273 88 27 5,516 36 260 376 51 134 Aug.r... 147 278 140 792 621 259 83 28 5,642 36 255 394 51 136 Sept/... 156 275 142 723 608 275 92 29 5,668 36 261 393 55 144 Oct.r... 165 265 145 777 565 264 88 30 5,804 37 255 370 52 143 Nov. r... 163 272 153 775 574 245 93 31 5,894 36 260 379 49 163 Dec.r... 154 276 149 792 611 266 88 30 5,956 38 270 281 50 219 1969—Jan/. .. 156 277 149 799 582 299 105 31 5,696 37 269 215 62 190 Feb....... 151 279 155 808 385 365 104 30 5,793 37 256 236 66 154 Mar/... 149 274 150 750 602 434 95 34 5,993 38 262 253 69 154 Apr.*... 158 273 146 752 623 430 97 31 5,839 38 253 274 79 144 8c. Asia—Continued 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 an i­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) r M oc o co ­ A S f o r u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total t A ra u l s ia ­ o A th l e l r 1966................... 2,671 162 285 228 598 779 385 15 31 71 39 229 266 243 22 1967*.................. J (2 2 , . 6 56 1 3 2 1 17 7 6 6 2 2 8 8 9 9 2 2 2 2 2 6 6 6 1 1 6 6 8 85 5 9 8 3 3 4 4 9 9 3 3 3 3 1 1 8 8 6 61 t 1 1 6 6 2 22 2 1 1 3 3 0 0 5 5 2 2 7 78 8 2 2 7 7 1968—Apr/.... 2,555 182 285 196 683 740 366 27 14 54 19 252 290 265 25 Mayr,.,. 2,482 174 265 197 681 729 371 25 10 60 20 257 304 279 25 June'.... 2,537 168 269 196 683 655 370 21 21 47 19 261 262 233 29 July......... 2,661 173 269 206 678 671 397 22 20 51 19 284 247 221 25 Aug. r.... 2,827 174 261 201 678 627 356 18 19 52 21 246 264 240 24 Sept.'.... 2,858 162 256 188 678 637 405 16 18 51 20 300 280 255 25 Oct/..... 3,094 166 259 180 653 594 369 13 14 49 20 274 283 256 27 Nov/.... 3,207 166 243 165 654 571 400 13 14 60 20 292 291 264 27 Dec.r,... 3,319 171 271 155 556 627 361 12 13 58 18 260 289 261 28 1969—Jan.'....... 3,248 155 237 149 559 575 360 12 15 50 19 265 267 238 28 Feb.......... 3,382 150 217 154 577 563 400 13 14 58 18 297 355 326 29 Mar.”.. . . 3^541 132 265 159 563 558 364 9 15 53 19 267 377 343 34 Apr/.... 3,417 129 243 160 554 547 389 19 17 76 19 257 395 365 30 1 Data exclude the “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line are Fund. comparable with those shown for the following date. 2 Latin American, Asian, African, and European regional organiza­ s 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

JUNE 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 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 Ireland Rep of........................... 7.4 9.4 14.7 23.8 Loas............................................ 6.5 3.6 4.0 3.1 I Aixembnurg .............................. 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 I .atm American republics: Pakistan...................................... 45.3 54,8 54.1 59,7 Bolivia........................................ 57.9 59.9 61.0 66.0 Ryukyu Islands (incl. 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 Ecuador....................................... 92.4 85.6 64.1 66.4 Syria............................................ 4.7 6.3 6.5 2,1 Fl 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: Honduras ................................. 28.6 29.7 31.4 33.2 Algeria........................................ 13.4 6.9 7.9 8.1 Jamaica........................................ 19.3 22.4 44.4 41.7 Ethiopia, (inch Eritrea).............. 40.2 23.8 22,5 13.2 Nicaragua ................................. 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 ^ 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 Other Latin America: Nigeria....................................... 36.5 37.9 24.0 British 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 Afghanistan.................................. 7.8 5.5 5,6 6.2 Tunisia........................................ 1.0 16.3 2.0 7.1 Burma ................................. 20.3 10.8 16,6 4.7 Uganda....................................... .7 1.4 10.0 Cambodia ................................ 1.3 1.9 2.7 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 New Zealand.............................. 16.7 17.5 15.4 16.8 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 •Included with Belgium. exclude also U.S. Treasury letters of credit and non-negotiable, non­ interest-bearing special U.S. notes held by the Inter-American Develop­ Note.—Short-term liabilities are principally deposits (demand and ment Bank and the International Development Association. time) and U.S. Govt, securities maturing in not more than 1 year from For data on long-term liabilities, see Table 14. 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks, official and international institutions2 To all other foreigners Payable End of period Total in foreign Deposits U.S. Deposits U.S. currencies Total T bU re ls a s a u n r d y Other 3 Total T b r il 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 19674r........................... / 30 ,’657 26,300 10,054 3,728 9*093 3,425 4,128 1,693 2;052 81 302 229 \ 30,505 26,156 9,884 3,721 9,093 3,458 4,120 1,693 2,054 81 292 229 1968—Apr.r................. 30,566 26,189 10,749 3,492 8,047 3,901 4,077 1,607 2,057 86 327 300 May r................ 30,758 26,387 11,962 3,384 7,082 3,959 4,051 1,582 2^45 88 336 320 June**.......... 30^197 25,702 12,310 3,320 6,067 4,005 4,171 1,694 2*048 88 342 323 Julyr.................. 30*766 26,142 12,478 3,399 6,031 4,235 4,111 1,613 2*067 79 352 512 Aus.r.. 31;295 26,662 12,945 3 454 6,171 4^092 4,126 1,581 2^069 81 395 507 Sept.r............... 31,351 26,589 12,925 3,430 6,111 4,123 4,203 1,641 2,116 78 368 559 Oct.r................ 31,762 27,014 13,321 3,352 6*328 4,013 4,197 1,596 2,141 77 383 551 Nov.r................. 33,389 28,475 13,404 3 258 7',761 4,052 4,344 1,674 2*179 83 408 571 Dec.r................. 31*795 26,715 12'664 3 294 6,710 4,047 4,443 1,796 2,199 86 362 636 1969—Jan.r.................. 31,849 26,924 14,095 3 294 5,315 4,219 4,420 1,744 2,203 107 366 505 Feb..................... 32;499 27^551 14*, 394 3.391 5,412 4,354 4^390 1,770 2,185 73 362 557 Mar.p................ 33*157 28 J 93 14,629 3’.444 5,271 4,848 4*, 390 1,751 2,160 104 374 574 Apr.”,.............. 34,147 29,184 14,994 3,504 5,595 5,091 4,379 1,762 2,121 110 386 585 1 Data exclude “holdings of dollars” of the International Monetary 4 Data on the two lines shown for this date differ because of changes in Fund. reporting coverage. Figures on the first line are comparable in coverage 2 Excludes negotiable time certificates of deposit, which are included with those shown for the preceding date; figures on the second line are in “Other.” comparable with those shown for the following date. 3 Principally bankers* acceptances, commercial paper, and negotiable 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. □ JUNE 1969 10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1968 1969 Area and country Apr. May June July Aug. Sept. Oct. Nov. Dec. Dec. Jan. Feb, Mar.” Apr.” Europe: Denmark.................................. 12 11 11 11 11 11 11 11 11 10 10 9 9 9 Finland..................................... 1 2 2 2 2 2 2 2 2 I 1 1 France....................................... 7 7 7 7 7 7 7 7 7 5 5 5 5 6 Netherlands............................ 4 4 4 4 4 4 4 4 4 2 2 2 2 2 Norway.................................... 49 57 57 57 38 38 38 38 38 37 37 37 37 37 Spain......................................... Sweden..................................... 26 26 26 26 6 6 6 6 6 5 5 5 5 5 Switzerland............................. 91 92 91 91 90 90 90 87 87 39 45 45 45 45 United Kingdom.................. 431 427 432 445 455 449 444 446 432 350 371 377 370 371 Other Western Europe. . .. 48 48 47 47 46 46 46 46 46 30 30 30 30 30 Eastern Europe..................... 7 7 7 7 6 6 6 6 6 6 6 6 6 6 Total..................................... 677 682 685 697 666 660 655 654 641 488 515 520 512 514 Canada......................................... 377 377 377 376 374 371 370 375 373 384 386 387 388 388 Latin America: Latin American republics.. 5 5 5 5 5 5 5 5 5 2 2 2 2 2 Neth. Antilles & Surinam. 17 17 17 20 22 22 22 22 22 15 15 15 15 15 Other Latin America.......... 2 2 2 2 2 2 1 1 1 * * • * * Total................................ 24 25 25 27 29 28 28 28 28 17 17 18 17 17 Asia: Japan......................................... 9 10 10 10 10 10 10 10 10 9 9 9 9 10 Taiwan.......................... 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Other Asia.............................. 52 52 52 52 50 61 61 61 61 16 15 15 15 16 Total............................... 63 63 63 63 62 73 73 73 73 26 27 27 27 28 Other countries......................... 20 20 20 20 25 25 25 23 23 11 11 9 9 9 Total foreign countries........... 1,161 1,167 1,170 1,184 1,156 1,157 1,151 1,153 1,138 927 956 961 954 956 International and regional: International.......................... 168 129 129 122 122 37 29 29 29 25 25 24 24 24 Latin American regional.. 36 37 37 38 38 38 38 39 13 13 14 14 14 15 Asian regional....................... 1 1 1 1 1 1 1 1 1 1 1 Total................................ 205 166 167 160 160 76 68 68 43 39 40 38 38 39 Grand total................... 1,366 1,334 1,336 1,344 1,316 1,233 1,219 1,221 1,180 966 996 999 992 995 Note.—Data represent estimated official and private holdings of mar­ Data shown for Dec. 1968 (second column) through latest date are based ketable U.S. Govt, securities with an original maturity of more than 1 on a benchmark survey as of Nov. 30, 1968, and the monthly transactions year. Data shown through Dec. 1968 (first column) are based on a July 31, reports. For statistical convenience, the new series is introduced as of Dec. 1963, benchmark survey of holdings and regular monthly reports of se­ 31, 1968, rather than as of the survey date. See also note 9 to Table 6. curities transactions (see Table 15). 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.I.S. 1966 695 353 144 184 25 342 25 30 50 125 111 1967 1,563 516 314 177 25 1,047 50 60 601 125 211 1968—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 3,568 1,666 32 1,334 140 15 25 20 100 1,902 50 1,250 226 376 lay 3,518 1,666 32 1,334 140 15 25 20 100 1,852 50 1,200 226 376 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, nonmarketable 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

JUNE 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 e t g i, io a n n a d l Europe Canada Am La e t r in ic a Asia Africa co O un th tr e ie r s 1966 ............................................................................... 7.853 1 1,374 611 2,453 3,206 147 62 1967 i............................................................................. / ( 8 8 , , 5 6 8 0 3 6 • 1 1, , 2 2 3 3 8 4 5 59 9 7 7 2 2, , 7 7 0 0 7 7 3 3, , 8 8 9 7 4 5 1 1 0 02 2 6 67 7 1968—'Apr...................................................................... 8.395 1,101 496 2,696 3,932 105 65 ay.................................................................., 8,331 * 1,156 479 2^699 3,813 116 68 June.................................................................... 8,244 1 1,101 479 2,705 3,776 120 63 July..................................................................... 8,179 I 1,019 501 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..................................................................... r8 348 1 ri, 102 503 2,837 3,709 127 70 Feb...................................................................... 8,393 1 1,157 593 2^756 3,703 120 63 Mar.®.................................................................. 8^629 2 1,163 672 2,788 3,830 109 65 Apr.®.................................................................. 8,693 I 1,242 697 2,798 3,762 119 75 12a. Europe Bel­ End of period Total A tr u ia s­ L b g u o iu x u e m rg m - 2 - m De a n rk ­ l F an in d ­ France G Fe e d r o m . f R a e n p 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 e e n ­ 1966 ............................. 1,374 16 67 62 91 74 227 16 110 40 76 41 67 75 1967 *........................... / 11 I , , 2 2 3 3 8 4 1 1 6 7 8 6 3 6 3 3 7 7 7 78 8 8 8 8 8 1 1 7 7 9 6 1 19 9 5 5 8 8 3 3 5 5 6 6 1 1 2 2 6 6 5 5 4 4 7 7 5 5 1968—Apr.................... 1,101 7 57 30 77 66 113 17 65 38 59 16 73 61 Nfay.............. 1,156 6 62 38 71 83 100 17 72 42 55 17 50 62 June................... 1,101 7 61 30 70 58 126 17 87 37 44 15 52 56 July.................. 1,019 6 54 31 68 50 108 15 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..................... ri, 102 3 45 34 63 59 ■■142 11 75 37 38 9 40 59 Feb.................... 1,157 5 52 42 61 53 149 12 93 34 35 8 40 54 Mar.®................ 1,163 3 46 31 57 58 136 12 98 41 32 8 44 56 Apr.®.......... 1,242 3 53 29 59 66 157 12 110 38 39 9 47 53 12a. Europe—Continued 12b, Latin America End of period S la w e n r i ­ t d z­ T ke u y r­ U K d n i o n it m e g d ­ Y sl u a g vi o a ­ E W u O e r t o s h t p e e e r rn ^ U.S.S.R. E E O u a r s th o te p e r e r n Total A t r i g n e a n­ Brazil Chile l C o b m i o a ­ ­ 1 Cuba M ic e o x­ 1966 ............................... 88 52 193 19 40 2 16 2,453 187 112 158 305 16 757 1967 1............................. 1 (9 9 8 8 3 3 8 8 2 24 4 4 4 1 1 3 3 3 1 0 3 3 3 1 1 8 8 2 2 , , 7 7 0 0 7 7 2 2 2 2 1 1 1 1 7 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—Apr...................... 93 33 238 17 12 3 25 2,696 208 233 176 188 15 983 Nfay..................... 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 11 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....................... 95 26 303 33 11 1 18 2,837 245 338 176 190 14 914 Feb...................... 124 26 305 34 11 1 18 2,756 247 336 168 188 14 931 Mar.®.................. 108 35 331 36 12 3 18 2,788 254 337 165 197 14 966 Apr.®................... 125 31 339 39 11 2 21 2,798 274 331 164 208 14 948 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. □ JUNE 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 p n e d ri o o d f Panama Peru U gu r a u y ­ V zu e e n l e a ­ re L l p i . c u A s b . ­ m m B u & e a d r s ­ a A S n n a t u & il m r l i e ­ s A L m a ic t a e in r­ Total C M la h a n in i d n a ­ H Ko o n n g g India I n n e d s o ia ­ Israel 1966................. 85 212 45 220 261 61 18 16 3,206 1 31 16 6 98 19671................ /47 249 42 226 289 63 10 18 3,875 1 28 10 5 57 147 249 42 226 289 63 10 18 3,894 1 30 10 5 57 1968—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 1 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 1 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 1 32 19 23 84 1969—Jan........ 52 200 40 213 268 147 21 17 3,709 1 27 13 19 80 Feb....... 57 179 43 204 270 88 14 16 3,703 I 26 13 24 80 Mar.*... 58 181 42 203 273 65 16 18 3,830 33 11 25 94 Apr,*... 55 191 41 211 263 68 11 19 3,762 1 42 12 59 93 12c. Alia—Continued 12d. Africa 12e. Other countries End of period Japan Korea P p h in il e ip s ­ T w a an i­ T la h n a d i­ O A t s h i e a r Total C s ( h K o a n i s n g a ­ o ) Mo c r o oc­ A S f o r u ic th a ( U E . g A y . p R t . ) A O f t r h ic e a r Total A t l r i u a a s ­ ­ o A th U e r 1966....................... 2,372 31 220 15 81 135 147 1 2 50 25 69 62 52 10 P.147 59 295 37 100 137 102 1 2 37 11 52 67 54 13 19671...................... \3,154 59 303 37 100 138 102 1 2 37 11 52 67 54 13 1968—Apr.............. 3,223 54 291 42 91 128 105 2 3 39 14 46 65 53 12 May............ 3,103 51 290 41 93 127 116! 4 5 40 16 51 68 54 14 June............ 3,048 53 293 38 90 125 120 4 7 40 15 53 63 51 12 July............. 2,986 48 319 40 88 129 124 5 7 41 14 57 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............. 3,037 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.............. 2,998 71 233 36 93 138 127 3 ■ 2 ' « 10 " 72 70 59 11 Feb....'.... 2,972 78 • 241 39 87 142 120 2 3 8 i _.7a. 61 53 • 10­ Maf.X.’. .’?. 3,056 . 77 269 44 — 84 ■ 137 • 109 - - ~ 2 ' .... 4 - 38 8 56 65 56 10 Apr.®.......... 2,916 103 253 47 84 152 119 4 3 42 10 60 75 64 11 * Data on the two lines shown for this date differ because of changes in Note.—Short-term claims are principally the following items pavable reporting coverage. Figures on the first line arc 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

JUNE 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 End of period Total Total Total O in tio f s f n i t c i s t i u a 1 ­ l Banks Others C s ti o t o i o a n u l n n l g e t s d ­ c ­ ­ f A o o m e a c r i f g a n c n c d a f e e o e e c p s c r r t s ­ t ­ , Other Total D w ei o i g t! i j i n o f e o s rs i r t - s g c c a n o u p o n a v a r d m i n t p t , i c e e l f s . e i r s e ­ , ­ Other 1966............................. 7,853 7,433 3,141 256 1,739 1,145 1,288 2,540 464 420 241 70 110 /8,583 8,158 3,137 306 1,603 1,228 1,511 3,013 498 425 287 74 63 1967 2.......................... (8,606 8,182 3,150 306 1,616 1,228 1,552 3,013 467 425 287 >•70 '67 1968—Apr.r............... 8,395 8,048 3,022 280 1,561 1,180 1,612 3,016 399 347 240 46 61 Mayr......... 8,331 8,010 3’076 270 1,619 1,187 1,610 2,886 438 321 220 44 57 June r................ 8,244 7,919 3,041 288 1,604 1,149 1,615 2,796 467 325 228 38 60 July r,.............. 8,179 7,841 3,002 287 1,566 1,148 1 ^586 2^787 467 338 230 44 65 Aug.r......... 8’,230 7,903 3,022 300 1,570 1,152 1,606 2,824 452 326 225 38 62 Sept.r. ............ 8,'323 7,977 3,197 302 1,731 1,163 1,621 2,745 415 346 250 29 67 Oct.r.......... 8'428 8'031 3,150 267 1,705 1,178 1,657 2,773 451 397 306 28 63 Nov.r......... 8',547 8'149 3,219 220 1,811 1,189 1,697 2,747 486 398 279 52 67 Dec. r............... 8,695 8^259 3^163 247 1,697 1 ^219 1,733 2’854 509 436 336 29 72 1969---Jan, r..................... 8,348 7,984 3,038 217 1,667 1,154 1,623 2,794 528 364 249 50 65 Feb................... 8,393 8,014 3,138 222 1,757 1,159 1,567 2,746 563 379 263 40 76 Mar.p............... 8^629 8J98 3^207 275 1,785 11147 1,630 2^777 584 430 270 70 90 Apr.*................ 8,693 8,210 3,160 290 1 ,762 1,108 1,711 2,773 565 483 318 67 98 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 Une are comparable in coverage 14. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Liabilities Claims Type Country or area End of period Inter­ Total F c o t o r r i u e e i n s g ­ n n re a g a t i i n o o d n n a a l l Total P L a o y a a n b s le in d A oll l a l rs P fo a c r y i u e n a i r g b ­ l n e U K d n i o n it m g ed ­ E O u t r h o e p r e Canada Am La e t r i i n c a Japan O A t s h i e a r t O c r o ie th u s e n ­ r 1 other rencies 1966............... 1,494 988 506 4.180 3,915 247 18 70 1,143 326 1 346 326 409 562 1967............... 2,560 1,863 698 3,925 3,638 272 15 56 720 427 1,556 180 449 536 1968—Apr. \. 2,659 2,029 630 3,849 3,512 326 11 65 661 435 1,450 162 553 523 May'.. 2,760 2,074 686 3,791 3,435 345 11 65 632 429 1,442 151 553 518 Juner.. 2,791 2,123 668 3,736 3,380 345 11 65 601 417 1,435 152 559 506 July'.. 2,627 1,989 639 3,627 3,272 343 11 65 552 414 i,4U 145 545 495 Aug.r.. 2,759 2,115 644 3,612 3,262 339 12 70 519 414 1,401 138 567 502 Sept.r.. 2,910 2,261 649 3,571 3,217 342 12 71 506 418 1,384 136 558 498 Oct.r.. 2,979 2,300 680 3,645 3,285 346 13 71 495 416 1,418 132 621 492 Nov.r.. 3,031 2,290 741 3,603 3,242 347 14 69 497 420 1,382 128 624 484 Dec.f.. 3,150 2,390 760 3,567 3,158 394 16 68 479 428 1,375 122 616 479 1969—Jan.'.. 3,158 2,390 768 3,509 3,117 376 16 67 473 408 1,376 118 611 457 Feb.... 3,130 2,360 770 3,534 3,114 402 18 67 474 432 1 ,382 117 610 452 Mar.*.. 3,097 2,340 758 3,434 3,042 376 16 69 473 400 1,336 114 570 473 Apr.*.. 3,045 2,276 769 3,435 3,047 372 16 66 480 402 1,330 113 578 466 I Includes Africa. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 82 INTL CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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 > 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’'........................... -489 -161 -328 -380 51 17,558 13,329 4,229 2,306 3,673 -1,367 1,245 1,562 -316 1969—Jan.-Apr.”.... 29 * 29 -3 32 5,385 4,198 1,187 636 1,014 -379 480 561 -80 1968—Apr.................. 8 * 8 8 1,379 1,038 340 161 370 -209 73 79 -6 May................. -33 -39 6 8 -2 1,852 1,375 477 305 185 120 87 110 -22 June................. 3 2 -1 3 1,505 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.r............... -28 ♦ -28 -36 8 1,340 1,049 291 141 226 -85 100 187 -87 Sept.................. -83 -85 2 11 -9 1,279 960 319 116 225 -110 97 201 -104 Oct.'............... -14 -8 -6 ♦ -6 1,856 1,454 402 450 692 -242 216 154 62 Nov. r. ........... 2 2 -2 3 1,610 1 ,270 340 172 361 -189 146 155 -9 Dec.r......... -41 -26 -15 ............. -15 1,803 1,468 334 104 166 -62 100 174 -74 1969—Jan.'................ 30 1 29 * 29 1,660 1,134 525 168 344 -176 130 109 21 Feb................... 4 -I 5 -3 7 1,416 1,065 351 121 227 -106 123 191 -68 Mar.”.............. -7 -7 -7 1,188 980 208 244 264 -19 126 125 1 Apr.”............... 3 1 2 ♦ 2 1,121 1,019 102 103 180 -77 102 137 -34 1 Excludes nonmarkctable 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 r............ 4,229 2,270 1,959 396 1,332 494 1,122 3,344 454 163 123 2 13 130 1969—Jan.- Apr.” 1,187 806 381 35 438 41 263 777 139 73 25 -1 18 155 1968—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 -t Aug.'. 291 80 212 32 76 39 122 270 8 -4 8 -1 * 10 Sept... 319 150 170 31 88 -1 84 202 29 4 16 -1 * 69 Oct.r. 402 211 191 18 132 14 86 249 25 19 -9 * 3 115 Nov.r 340 284 56 97 116 24 36 273 34 13 17 -3 6 Dec.r. 334 237 98 29 117 12 86 244 29 39 9 * 10 3 1969—Jan.'. 525 362 163 12 191 9 89 301 98 31 22 -1 3 70 Feb... 351 270 81 10 120 48 61 239 40 45 2 10 15 Mar.” 208 100 109 7 91 -29 79 148 -16 -22 -2 • -2 102 Apr.”. 102 74 28 6 36 13 34 89 17 18 3 * 6 -31 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 ate 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

JUNE 1969 a 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 dottars) Total Period Total g I a i r n o n e n t d ­ i, a l c e t f o r o i i u g e r n n s ­ ­ r E op u e ­ C a a d n a ­ A L i m a c t a e in r­ Asia r A ic f a ­ O c t o r t i h u e e s n r ­ E pe nd ri o o d f Deposits U.S A . s G s 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 1968r.......... — 1'684 -329 -1,354 7 -934 -300 -96 -39 6 1966............. 174 7,036 12,946 1967............. 135 9,223 13,253 1969-Jan.-Apr.» -459 73 -532 9 -374 -77 -80 -7 -4 1968—May.. 422 8,328 13,645 -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 June....... -150 2 -152 8 -103 -27 -20 -12 2 Aug... 127 7,590 13,357 July........ —88 -14 -74 53 -56 — 60 -7 -4 Sept... 192 7,777 13,187 A S O e u c p g t. t r . .. r . . . . . . . . . . - - - 1 2 1 8 1 73 0 4 -2 - - 1 1 1 3 8 8 - - 1 1 9 5 3 5 9 9 - - 5 6 7 8 9 9 - - - 6 5 9 1 5 2 -4 -2 4 6 -2 - - 7 8 1 - 1 1 6 * ■ 2 * N D O e o c c v t. . . . . . . . . . 2 2 1 2 1 0 0 6 0 9 7 9 , , , 6 1 9 7 2 5 3 0 6 1 1 1 3 3 3 , , , 0 0 15 5 6 1 9 6 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 7 5 4 -3 -5 2 - - 1 1 7 2 0 2 - 1 3 3 - - 1 1 6 2 3 9 -5 4 - - 9 4 -1 ♦ 2 3 M Ap a r r . . . . . . 1 13 6 0 4 8 8 , , 0 5 1 2 2 6 1 1 3 3 , , 1 1 2 7 8 6 M Ap a r r . . * » *. . . . . . . , -1 -1 11 8 102 8 - - 1 1 2 1 1 9 -2 2 2 1 - - 2 6 0 2 - - 6 1 0 4 - - 4 21 5 -6 * -11 1 May.. 107 10,035 13,037 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 net 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 1969 Jan. 29......................1..,.0.40 Jan. 26............... 1,688 4,259 6,054 Feb. 26.......................... 1,077 Feb. 23........................... 1,902 Feb. 28........................... 4,530 8........7..,.4..8..9.. ......... Mar. 25.......................... 1,046 Mar. 30........................... 1,879 Mar. 27........................... 4,920 15.......................... 8,134 22......................... 8,576 Apr. 29.......................... 1,146 Apr. 27............. 1,909 Apr. 24........................... 5,020 29.......................... 8,656 May 27.......................... 1,132 May 25.......................... 2,003 May 29................. 5,888 June 24.......................... 917 June 29........................... 1,951 6,241 July 29.......................... 1,008 July 27........................... 2,786 Feb. 5........................... 8,567 1,166 3,134 July 31........................... 6,183 12........................... 8,332 1,166 3,472 Aug. 28.......................... 7,025 19........................... 8,544 26.......................... 8,869 Oct. 28.......................... 1,198 Oct 26........................... 3,671 Sept. 4............... 6,984 Nov. 25.......................... 1,380 Nov. 30 . 3,786 7,373 Dec. 30.................... 1,183 Dec 28........................... 4,036 1 1 8 8 . 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 , , 5 6 9 1 9 0 Mar 12 5........................... 9 9 , , 1 4 7 1 2 8 1965 1967 25............... 7,t3t 19........................... 9,738 Jan. 27......................1..,.3.58 3,653 Oct. 2........................... 6,914 26........................... 9,662 Feb. 24.......................... 1,592 Feb 22................... 3,396 9........6..,.8..8..7.. .......... Mar. 31.......................... 1,431 Mar 29........................... 3,412 16........................... 7,240 23........................... 7,504 Apr. 2............... 9,199 Apr. 28.......................... 1,433 Apr. 26........................... 3,047 30........................... 7,000 9,534 May 26.......................... 1,432 May 31............... 2,776 9,749 June 30.......................... 1,436 June 28.......................... 3,166 Nov. 6........................... 6,961 10,319 13........................... 7,180 30 *■9,450 July 28.......................... 1,572 July 26........................... 3,6«O 20........................... 7,388 Aug. 25.................. 1,792 Aug. 30........................... 3,976 27........................... 7,273 Sept. 29.......................... 1,611 4,059 Dec. 4. .............. 6,960 May 7,............. 9,935 Oct. 27.......................... 1,719 Oct. 25........................... 4,322 11.......................... 7,439 ' 14........9..,.4..8..4.. .......... Nov. 24.......................... 1,697 Nov. 29........................... 4,206 18........................... 7,290 21 ........ 10,069 Dec. 29.......................... 1,345 Dec. 27........................... 4,241 25........................... 6,976 28 ........ 9,780 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. □ JUNE 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.” Dec. Mar. June Sept. Dec,? Europe: Austria................................................... 2 2 3 2 7 5 17 6 6 5 Belgium-Luxembourg1......................... 27 29 47 60 73 42 44 54 68 49 Denmark............................................... 7 43 8 8 4 11 10 9 10 12 Finland.................................................. 3 4 4 4 4 6 7 9 9 9 France................................................... 64 68 92 114 112 111 128 136 157 145 Germany, Fed. Rep. of........................ 92 108 ’■125 150 120 134 128 127 174 204 Greece................................................... 11 12 15 14 11 20 20 24 26 27 Italy....................................................... 61 59 60 64 63 103 111 119 130 124 Netherlands.......................................... 79 71 84 65 42 51 78 86 67 54 Norway................................................. 4 4 4 5 4 8 10 10 10 10 Portugal................................................. 6 4 6 8 4 7 6 8 8 7 Spain..................................................... 31 34 50 48 37 90 88 72 76 71 Sweden.................................................. 24 17 24 26 25 24 26 26 26 26 Switzerland............................................ 86 63 70 112 116 29 31 32 71 39 Turkey................................................... 3 3 3 3 5 9 9 9 7 5 United Kingdom.................................. 310 255 274 407 391 774 1,095 >•(,527 1,450 1,206 Yugoslavia............................................ 1 1 1 4 6 6 4 7 Other Western Europe *...................... 4 4 6 5 9 14 12 13 15 16 Eastern Europe..................................... 1 1 1 1 2 8 10 10 6 8 Total.. .j...................................... 814 783 ’877 1,096 1,029 1,449 1,836 ’•2,282 2,318 2,024 Canada..................................................... 205 191 199 199 194 547 501 559 501 539 Latin America: Argentina.......................................... 4 5 6 7 6 28 28 31 36 46 Brazil..................................................... 9 13 18 19 16 84 83 87 102 91 Chile...................................................... 8 10 12 6 5 34 31 30 38 36 Colombia.............................................. 9 6 9 7 7 22 25 25 25 29 Cuba...................................................... ♦ * * 2 2 2 2 2 Mexico................................................... 10 7 9 9 6 112 109 83 94 103 Panama................................................. 4 5 3 5 3 13 10 12 15 15 Peru....................................................... 6 6 5 6 7 29 28 28 28 26 Uruguay................................................ 1 2 1 1 5 4 5 4 6 Venezuela.............................................. 33 35 35 36 33 57 62 59 57 67 Other L.A. republics............................ 24 15 18 23 22 64 59 63 72 80 Bahamas and Bermuda....................... 11 9 12 10 18 23 35 36 46 66 Neth. Antilles & Surinam.................... 5 5 4 4 5 7 5 6 5 6 Other Latin America............................ 1 2 2 1 2 10 9 8 8 9 Total.............................................. 124 120 133 134 133 490 490 474 532 581 Asia: Hong Kong........................................ 5 4 4 4 5 9 7 10 10 8 India...................................................... 12 13 14 10 12 42 41 37 39 34 Indonesia............................................... 4 4 5 3 4 4 6 6 7 7 Israel..................................................... 3 4 17 15 17 6 7 10 9 6 Japan..................................................... 63 75 78 91 89 185 178 '175 195 207 Korea.................................................... 1 1 I 1 1 9 12 14 18 21 Philippines............................................ 8 8 8 10 9 33 26 22 21 25 Taiwan.................................................. 5 6 4 3 5 9 8 12 12 19 Thailand................................................ 5 2 2 2 2 13 13 15 15 16 Other Asia............................................ 46 46 45 36 31 87 86 90 97 134 Total.............................................. 151 165 176 175 176 397 383 ’392 423 476 Africa: Congo (Kinshasa)................................ * 1 1 1 1 3 2 5 3 2 South Africa......................................... 8 7 . 6 12 11 14 17 16 19 31 U.A.R. (Egypt)..................................... 3 4 6 4 5 7 5 6 6 7 Other Africa.......................................... 12 16 12 8 8 33 37 37 37 37 Total.............................................. 23 29 24 25 24 56 61 64 65 76 Other countries: Australia............................................ 61 53 46 43 44 62 57 62 58 54 AU other................................................ 8 7 7 6 5 10 12 10 9 11 Total.............................................. 69 60 53 49 48 72 69 72 68 65 International and regional....................... * ♦ ♦ * • * ♦ 1 1 1 Grand total.................................... 1,386 1,348 1,463 1,678 1,603 3,011 3,341 '■3,845 3,907 3,763 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

JUNE 1969 □ INTL CAPITAL TRANSACTIONS OF THE U.S. A 85 21. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millions of dollars) Liabilities Claims Payable in foreign currencies End of period Payable Pay in a ble Payable Total do i l n la rs foreign Total do i l n la rs Deposits with currencies banks abroad in reporter’s Other 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 2,411 1’966 198 248 Sept.................................................................................. 779 585 195 2,406 1,949 190 267 Dec................................................................................... 807 600 207 2,397 2,000 167 229 Dec. 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 2,063 191 215 Sept.................................................................................. 1.028 785 243 2,539 2,146 166 227 Dec.................................................................................. 1,089 827 262 2,628 2,225 167 236 1967—Mar.................................................................................. 1,148 864 285 2,689 2,245 192 252 June ............................................................................... 1,203 916 287 2,585 2,110 199 275 Sept.................................................................................. 1,353 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 r............................................................. 1,463 1,046 417 3,845 3;4O6 210 229 Sept r............................................................................ 1 ^678 1 271 407 3,907 3^292 422 193 Dec.?............................................................................... 1,603 1,218 385 3,763 3,142 368 254 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 22. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NON6ANKING CONCERNS (In millions of dollars) Claims Country or area End of period Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O m La t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th l e l r 1964—Dec........................ 107 1,081 56 116 190 215 73 137 89 98 91 15 1965—Mar....................... 115 1.075 35 121 203 220 74 137 81 96 91 18 June....................... 110 1,081 31 118 208 221 70 144 85 96 91 17 Sept....................... 120 1.101 31 116 230 217 74 138 89 96 91 18 Dec........................ 136 1,169 31 112 233 209 69 196 98 114 89 17 Dec. 1..................... 147 1,139 31 112 236 209 65 198 98 87 85 18 ] 966—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 14 249 1,235 23 174 267 202 64 207 102 91 90 14 Dec........................ 329 1,256 27 198 272 203 56 212 95 93 87 13 1967—Mar........................ 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 1,488 27 257 303 214 88 290 110 98 85 15 Sept....................... 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 Juner............ 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept....................... 757 1,625 43 313 376 198 62 251 126 142 82 32 Dec.?..................... 1,087 1,744 142 312 383 194 73 235 128 156 83 38 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 86 GOLD RESERVES □ JUNE 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 t 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 43 1965......................... 243,230 31,869 13,806 27,285 35 66 223 700 1,558 63 84 1,151 44 1966......................... 43,185 2,652 13,235 27,300 35 84 224 701 1,525 45 84 1,046 45 1967......................... 41,600 2,682 12,065 26,855 33 84 231 701 1,480 45 84 1,015 45 1968-—Apr.......... 2,727 10,547 31 84 232 701 1,450 45 84 976 45 May.............. 2,735 10,468 31 84 235 701 1,450 45 84 926 44 June.............. 40,510 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 1,518 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 1,524 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................ 40,905 2,288 10,892 27,725 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 31 109 257 714 1,522 45 84 863 46 Mar.p........... 41,050 2,295 10,836 27,920 31 109 256 714 1,522 45 84 863 47 Apr.p............ 2,297 10,936 31 255 714 1,522 84 863 47 Ger­ End of Co­ Den­ Fin­ many, Ire­ period 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 77 247 141 112 19 56 2,107 304 1965......................... 35 97 84 4; 706 4,410 78 281 146 110 21 56 2,404 328 1966......................... 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967......................... 31 107 45 5^234 4,228 130 243 144 115 25 46 2,400 338 1968—Anr 33 107 46 5,235 3,972 138 243 166 193 52 46 2,401 341 Nfay.............. 33 107 46 5,235 3’973 141 243 166 193 62 46 2,452 341 June.............. 33 U3 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 2,846 356 Dec............... 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 1969--Jan................ 31 114 45 3,877 4,539 132 243 158 193 79 46 2,923 356 Feb................ 31 114 45 3,877 4,541 132 243 158 193 79 46 2,925 356 Mar.p............ 30 114 45 3,827 4,541 132 243 158 193 79 46 2,924 357 Apr.®............ 30 114 45 3,726 4,541 243 158 193 79 46 2,924 359 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 68 158 21 1,756 31 53 67 38 576 73 1966......................... 67 193 68 109 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--Apr............... 127 267 85 52 156 21 1,654 18 54 20 65 711 69 Nfay.............. 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 Aus......... 116 288 85 66 165 21 1,697 24 54 20 61 835 119 Sept.............. 110 288 85 66 165 21 1,697 24 54 20 62 853 119 Oct................ 112 288 85 66 165 21 1,697 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 p20 62 856 119 1969--Jan................ 122 288 85 66 165 21 1,697 24 54 58 857 119 Feb................ 124 288 85 66 165 21 1,698 23 54 60 856 119 Mar.p....... 288 85 21 1,698 24 54 65 856 119 Apr.p............ 288 85 21 1,698 24 54 67 119 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 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 io o d f A S f o r u ic th a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m e g d ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u a g vi o a ­ S I e f n o t t t r l i e . ­ ments 4 1962.............................. 499 446 tst 2,667 43 104 140 174 2,382 180 401 4 -50 1963............................. 630 573 182 2,820 50 104 113 174 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—Apr................... 847 785 203 2,603 81 91 97 93 133 401 22 -331 May.................. 946 785 203 2,628 81 89 97 93 133 401 22 -326 June.................. 975 785 225 2,656 81 89 97 93 1,474 133 403 23 -333 July............ 1,003 785 225 2,600 81 89 97 93 133 403 33 -274 Aug........... 1,016 785 225 2,629 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 Oct.................... 1,145 785 225 2,626 81 92 97 93 134 403 44 -274 Nov................... 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 1969—Jan.................... 1,287 785 225 2,623 81 92 97 93 133 403 50 -276 Feb.................... 1,321 785 225 2,646 81 92 97 93 133 403 50 -278 Mar.”............... 1,367 785 225 2,645 81 92 97 93 1,476 136 403 50 -284 1,409 785 225 2,644 92 97 403 50 -286 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 and South America Asia Other World Period p t r i o o d n u c t ­ A S f o r u ic th a R de h s o ia ­ Ghana C s ( h K o a n i s n g a o ­ ) U S n ta it te e s d C a a d n a ­ M ic e o x­ r N a i g c u a a ­ Co b l i o a m­ India P p h in il e ip s ­ t A ra u l s ia ­ ot A h U e r 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 36.6 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? 1,088.0 94.1 8.4 1968--Mar.......... 91.8 2.1 8.3 .4 .7 .3 1.5 2.8 Aor........... 91.8 2.0 8.2 .3 .7 .3 1.4 2.5 ................. 93.1 2.1 8.4 .3 .7 .3 1.6 2.3 June................. 91.5 2.1 7.5 .2 .6 1.6 July................. 90.5 7.4 .3 .8 Auer.................. 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................... 83.4 7.8 .5 Feb................... 86.7 7.1 Mar.................. 89.1 7.6 1 Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U5. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 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 □ JUNE 1969 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months May 31, 1968 Rate Country 1968 1969 M a a s y o 3 f 1 , Per Month 1969 cent effective June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Argentina 6.0 Dec. 1957 6.0 Austria 3.75 Oct. 1967 3.75 Belgium 3.75 Mar. 1968 4.5 5.0 5.5 6.0 6.0 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 Ceyt on 5.5 May 1968 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 9.0 9.0 Ecuador 5.0 Nov. 1956 5.0 RI 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 4.0 4.0 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 Aug. 1966 7.0 7.0 Ireland.................................. 7.31 May 1968 7.44 7.25 6.86 6.81 7.0 7.17 7.12 8.6 8.75 8.38 8.38 Israel.......................... , 6.0 Feb. 1955 6.0 Italy......................... 3.5 June 1958 3.5 Jamaica............................. 6.0 Nov. 1967 5.0 5.5 6.0 6.0 Japan............................... 6.21 Jan. 1968 5.84 5.84 Korea........................ 28.0 Dec. 1965 28.0 Mexico........... . 4.5 Juno 1942 4.5 Netherlands...................... 4.5 Mar. 1967 5.0 5.5 5.5 New Zealand.................... 7.0 Mar. 1961 7.0 Nicaragua..................... 6.0 Apr. 1954 6.0 Norway..... 3.5 Feb. 1955 3.5 Pakistan. 5.0 June 1965 5.0 Peru, , .. .. 9.5 Nov. 1959 9.5 Philippine Republic , 7.5 Feb. 1968 8.0 8.0 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 11.9 10.8 10.8 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 7.6 8.0 8.0 Venezuela............................. 4.5 Dec. 1960 4.5 1 On Juno 24, 1962, the bank rate on advances to chartered banks Brazil—8 per cent for secured paper and 4 per cent for certain agricultural was fixed at 6 per cent. Rates on loans to money market dealers will paper; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Colombia—5 per cent for warehouse receipts covering approved lists of average rate, but will not be more than the bank rate. products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent 2 Effective July 2 the rate was 7.0 per cent. for rediscounts in excess of an individual bank’s quota; 3 Beginning with Apr. I, 1959, new rediscounts have been granted at Costa Rica—5 per cent for paper related to commercial transactions the average rate charged by banks in the previous half year. Old redis­ (rate shown is for agricultural and industrial paper); counts remain subject to old rates provided their amoiint is reduced by Ecuador—6 per cent for bank acceptances for commercial purposes; one-eighth each month beginning with May(l, 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—8 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

JUNE 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 it n z d er­ Month 3 T m r b e o a il n l s s t u , h r s y ! m Da o d n y a e - y t y o 2 ­ 3 B a a a m c n n c o c k e e n e p s t r h t . s ­ s ’ 3 T r m e b a i o ll s n s u t , h ry s D m a d o y a n - y e t o y ­ a B d llo a e w n p o k o a n e s n r it c s s e * D m a o d y n a - e y t y o 3 ­ Tr 6 d e b 0 a i a U - y s 9 s s u 0 , * r y D m a o d n y a e - y t y o ­ 5 T 3 r m b ea i o ll s n s u t , h ry s D m a d o y a n - y e t o y ­ d P is r r c i a v o t a e u te n t 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............. 3.80 5.67 7.78 7.52 6.83 6.00 4.76 2.75 2.77 4.51 4.05 3.75 1968—Apr............ 6.91 6.85 7.42 7,08 6.48 5.50 5.12 2.75 2.72 4.33 3.49 3.75 May........... 6.96 6.75 7.42 7.15 6.51 5.50 5.66 2.75 2.99 4.43 4.53 3.75 June........... 6,75 6.35 7.54 7.21 6.42 5.50 5.76 2.75 2.68 4.56 4.69 3.75 July............ 6.21 5.68 7.58 7.15 6.51 5.50 6.00 2.75 2.43 4.57 4.40 3.75 Aug............ 3.75 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............ 3.64 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 7.88 2.75 3.27 5.00 5.38 3.75 Mar............ 6.62 5.89 8.35 7.78 6.90 6.00 8.18 2.75 3.63 5.00 5.38 3.81 Apr............. 6.69 6.47 8.41 7.79 6.88 6.00 ........3....7..5.. 2.46 5.39 5.77 4.00 1 Based on average yield of weekly tenders during month. s Monthly averages based on daily quotations. 2 3 B R a a s te ed s h o o n w w n e i e s k o ly n a p v r e iv ra a g t e e s s o ec f u d r a iti i e ly s . closing rates. Se N ct o io t n e .— 15 F o o f r S d u e p s p c le ri m pt e io n n t t a o 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 in 6 a 2. 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 Date K U in n g i d te o d m Spread P d i i r + s e c m ) o i u o u n m r t in ( c f N a en v e o t t i v r e Canada Spread d ( P is + r c e ) o m u o i n u r t m in ( c f N a e v n e o t t i v r e quotation U S n ta it te e s d L ( o fa n o v d f o o r n ) f ( o p - r o w ) u a n o r d n d Lon o d f o n) qu A i o n s t e d qu A o U d t . j a . S t . t i o o n U S n ta it te e s d C ( a fa n o v a f o d r a ) C f d o a o r n w l a la a d r r i s a d n Can o a f d a) basis) Canada basis 1969 Jan. 3.............. 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 — J3 +.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 Mar. 7.............. 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 6.55 6 36 6 05 + 31 + .82 + 1 13 11.............. 7.63 6.12 1.51 -2.78 -1.27 6.63 6 43 6.12 + .31 + .61 + .92 18............. 7.63 6.17 1.46 -2.71 -1.25 6.69 6.49 6.i7 + .32 + .65 + .97 25.............. 7.63 6.07 1.56 -3.28 -1.72 6.58 6.39 6.07 + .32 + .74 + 1.06 May 2.............. 7.63 5.91 1.72 -6.02 -4.30 6.82 6.62 5.91 + .71 + .86 + 1.57 9.............. 7.64 5.92 1.72 — 10.72 -9.00 6.80 6 60 5.92 + .68 +1.08 + 1.76 16.............. 7.63 6.06 1.57 —8.08 -6.51 6.71 6.51 6.06 + .45 + 1.12 + 1.57 23.............. 7.67 5.98 1.69 —7.25 -5.56 6.68 6 48 5.98 + .50 + 1.21 + 1.71 29.............. 7.67 6.08 1.59 -7.09 -5.50 6.70 6 50 6.08 + .42 + 1.38 + 1.80 June 6.............. 7.66 6.34 1.32 -4.62 -3.30 6.80 6.60 6.34 + .26 + 1.60 +1.86 Note.— Treasury bills: AU rates are on the latest issue of 91-day biUs. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates It a.m, Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 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 □ JUNE 1969 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Argentina Austria Belgium Canada Ceylon Denmark Finland (peso) (schilling) (franc) (dollar) (rupee) (krone) (markka) (pound) (dollar) 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 illl.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 —Mav................................................. .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 31.9927 93.177 16.675 413.308 423.757 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 Apr.................................................. .28490 111.24 3.8669 1.9890 92.903 16.678 13,285 23.785 May....................................... .28490 110.93 3.8646 1.9925 92.837 16.694 13.269 23.785 Period F (f r r a a n n c c e ) ( G d m e eu r a m ts r a k c ) h n e y (r I u n p d e ia e ) ( I p re o l u a n n d d ) ( I l t i a ra ly ) J (y a e p n a ) n ( M do a si l l a l a a y r ­ ) M (p e e x s i o c ) o ( e g N r u la e il n d th d e ­ s r) 1964............................................................ 20.404 25.157 20.923 279.21 .16014 .27625 32.566 8.0056 27.724 1965............................................................. 20.401 25.036 20.938 279.59 .16004 .27662 32.609 8.0056 27.774 1966............................................................. 20.352 25.007 M6.596 279.30 .16014 .27598 32.538 8.0056 27.630 1967............................................................. 20.323 25.084 13.255 275.04 .16022 .27613 32.519 8.0056 27.759 1968............................................................. 20.191 25,048 13.269 239,35 .16042 .27735 32,591 8,0056 27.626 1968—v................................................. 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.................................................. 20,121 25.153 13.230 238.58 .16037 .27925 32,538 8.0056 427.556 Dec.................................................. 420.199 <>25.032 13.234 238.42 3.16026 .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 Apr........................................ 20.145 24.925 13.249 239,31 .15947 .27917 32,649 8.0056 27.520 May,......................................... 20.115 25.065 13.212 238.65 .15919 .27899 32.636 8.0056 27.467 Period (pou N n e d w ) Zea ( la d n o d llar) N (k o ro rw ne a ) y (e P s o g c a r u t l d u o ­ ) ( A S ra f o r n u ic d th a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S fr r a w la n i n t c z d ) ­ ( U p K d o n i o n u it m g n e d - 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 7131.97 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-—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 Aus. 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 *13.999 *3,4855 138.65 31.4281 19.323 23.256 238.58 Dec.................................................. 110.93 14.000 3.4886 138.56 1.4279 619,323 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 Apr................................................ 111.35 14.007 3.5036 139,08 1.4271 19.350 23.135 239.31 N&y................................................. 111.04 13.999 3.4985 138.69 1.4262 19.337 23.117 238.65 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 7 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 Nov. 20, 1968. the following countries devalued their currency in relation to the U.S. 4 Quotations not available Nov. 20-22, 1968. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. 5 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to Averages of certified noon buying rates in New York for cable transfers. 7.5 rupees per U.S. dollar. For description of rates and back data, sec “International Finance,” 6 Quotations not available Nov. 20-21, 1968. Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

JUNE 1969 a BANK HOLDING COMPANIES A 91 BANK HOLDING COMPANIES, DECEMBER 31, 1968 (Registered pursuant to Section 5, Bank Holding Company Act of 1956) Location of Location of principal office Holding company principal office Holding company California Montana Los Angeles.............. Western Bancorporation Great Falls.............. Bancorporation of Montana Oakland........................... Central Banking System. Inc. New Hampshire Colorado.............................. Nashua..................... New Hampshire Bankshares, Inc. Denver............................. Colorado CNB Bankshares, Inc. Denver.............................. Denver U. S. Bancorporation, Inc. New York Denver............................. The First National Bancorporation, Inc.1 Buffalo...................... Marine Midland Banks, Inc. Littleton2........................ First Colorado Bankshares, Inc. New York.......... Bankers Trust New York Corporation New York.................... Charter New York Corporation District of Columbia New York.................... Empire Shares Corporation Washington.................... Financial General Corporation New York.................... The Morris Plan Corporation Rochester..................... Lincoln First Banks Inc. Florida Rochester..................... Security New York State Corporation Coral Gables................. United Bancshares of Florida, Inc. Warsaw......................... Financial Institutions, Inc. Haines City.................... First Florida Bancorporation Warsaw........................ Geneva Shareholders, Inc. Jacksonville................... Atlantic Bancorporation Jacksonville.................... The Atlantic National Bank of Jacksonville Ohio Jacksonville................... Barnett National Securities Corporation Cleveland................. Society Corporation Jacksonville.................... Charter Bankshares Corporation Columbus.................... BancOhio Corporation Jacksonville.................. Trustees, Estate of Alfred I. du Pont Columbus..................... First Banc Group of Ohio, Inc. Miami.............................. Commercial Bancorp, Inc. Columbus.................... Huntington Bancshares Incorporated Miami.............................. Southeast Bancorporation, Inc. Orlando........................... First at Orlando Corporation Tennessee Tampa.............................. The First National Bank of Tampa Chattanooga........... Hamilton National Associates, Incorporated Tampa.............................. Union Security & Investment Co. Texas Georgia................................ Dallas............................ Mercantile National Bank at Dallas Atlanta......................... Trust Company of Georgia Fort Worth................. The First National Bank of Fort Worth Atlanta............................ Trust Company of Georgia Associates Houston........................ C. B. Investment Corporation Savannah......................... Citizens and Southern Holding Company Savannah......................... The Citizens and Southern National Bank2 Utah Salt Lake City........ First Security Corporation Indiana................................. South Bend..................... St. Joseph Agency, Inc. Virginia South Bend.................... St. Joseph Bank and Trust Company Arlington................. First Virginia Bankshares Corporation Richmond.................... United Virginia Bankshares Incorporated Iowa Richmond.................... Virginia Commonwealth Bankshares, Inc. Des Moines.................... Brenton Banks, Inc. Roanoke .................... Dominion Bankshares Corporation Red Oak......................... Hawkeye Bancorporation Kentucky Washington Louisville........................ Trustees, First National Bank of Louisville Port Angeles........... Union Bond & Mortgage Company Spokane........................ Washington Bancshares, Inc. Maine Augusta....................... Depositors Corporation Wisconsin Bangor............................. Eastern Trust and Banking Company Appleton.................. First National Corporation Appleton....................... Valley Bancorporation Massachusetts Milwaukee................... American Bankshares Corporation1 Boston.............................. Baystate Corporation Milwaukee................... First Wisconsin Bankshares Corporation Boston.............................. Shawmut Association, Inc, Milwaukee................... The Marine Corporation Milwaukee................... Marshall & Ilsley Bank Stock Corporation Michigan Waukesha.................... First Holding Company, Inc. Flint.............................. Charles Stewart Mott Foundation Wausau......................... Central Wisconsin Bankshares, Inc. Minnesota Canada Minneapolis.............. Bank Shares Incorporated Montreal.................. Bank of Montreal Minneapolis.................. First Bank System, Inc. Toronto......................... Canadian Imperial Bank of Commerce Minneapolis................... Northwest Bancorporation St. Paul............. Otto Bremer Company England St. Paul............. Otto Bremer Foundation London.................... Barclays Bank Limited Missouri Japan Kansas City......... Commerce Bancshares, Inc. Tokyo. ..................... The Bank of Tokyo, Ltd. Kansas City................... Joe W. Ingram Trust “B” St. Joseph .*..................... The First National Bank of St. Joseph St. Louis......................... General Bancshares Corporation 1 These companies were bank holding companies as of Dec. 31, 1968, but had not registered with the Board in 1968. 2 Reflects name and location changes subsequent to Dec. 31, 1968. 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 the Board Robert E. Nichols, Special Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF FEDERAL RESERVE BANK Robert C. Holland, Secretary OPERATIONS 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 Daniel H. Brill, Director Janet O. Hart, Assistant Director J. Charles Partee, Associate Director John N. Lyon, Assistant Director Milton W. Schober, Assistant Director Stephen H. Axilrod, Adviser Lyle E. Gramley, Adviser Thomas A. Sidman, 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 Peter M. Keir, Assistant Adviser DIVISION OF ADMINISTRATIVE SERVICES Bernard Shull, Assistant Adviser Joseph E. Kelleher, Director Louis Weiner, Assistant Adviser Harry E. Kern, Assistant Director John D. Smith, Assistant Director DIVISION OF INTERNATIONAL FINANCE Robert Solomon, Director OFFICE OF THE CONTROLLER ♦Robert L. Sammons, Associate Director John Kakalec, Controller John E. Reynolds, Associate Director Harry J. Halley, Assistant Controller John F. L. Ghiardi, Adviser A. B. Hersey, Adviser OFFICE OF DEFENSE PLANNING Reed J. Irvine, Adviser Innis D. Harris, Coordinator Samuel I. Katz, Adviser Bernard Norwood, Adviser DIVISION OF DATA PROCESSING Ralph C. Wood, Adviser Robert F. Gemmill, Associate Adviser Jerold E. Slocum, Director Samuel Pizer, Associate Adviser John P. Singleton, Associate Director ♦On leave of absence. A 92 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

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 Lyle E. Gramley, Associate Economist Charles Molony, Assistant Secretary Ralph T. Green, Associate Economist Howard H. Hackley, General Counsel A. B. Hersey, Associate Economist David B. Hexter, Assistant General Counsel Robert G. Link, Associate Economist J. Charles Partee, 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 A 93 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 94 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President U1AHVU 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

FEDERAL RESERVE BOARD PUBLICATIONS The material listed may be obtained from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should 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. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND BANKING MARKET STRUCTURE & PERFORMANCE FUNCTIONS. 1963. 298 pp. IN METROPOLITAN AREAS: A STATISTICAL STUDY OF FACTORS AFFECTING RATES ON ANNUAL REPORT. BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or FEDERAL RESERVE BULLETIN. Monthly. $6.00 per more sent to one address, $.40 each. annum or $.60 a copy in the United States and FARM DEBT. Data from the 1960 Sample Survey its possessions, Bolivia, Canada, Chile, Colom­ of Agriculture. 1964. 221 pp. $1.00 a copy; 10 bia, Costa Rica, Cuba, Dominican Republic, or more sent to one address, $.85 each. Ecuador, Guatemala, Haiti, Republic of Hon­ duras, Mexico, Nicaragua, Panama, Paraguay, MERCHANT AND DEALER CREDIT IN AGRICUL­ Peru, El Salvador, Uruguay, and Venezuela; 10 TURE. 1966. 109 pp. $1.00 a copy; 10 or more or more of same issue sent to one address, $5.00 sent to one address, $.85 each. per annum or $.50 each. Elsewhere, $7.00 per REGULATIONS OF THE BOARD OF GOVERNORS OF annum or $.70 a copy. THE FEDERAL RESERVE SYSTEM. FEDERAL RESERVE CHART BOOK ON FINANCIAL AND BUSINESS STATISTICS. Monthly. Annual RULES OF ORGANIZATION AND PROCEDURE­ subscription includes one issue of Historical BOARD OF GOVERNORS OF THE FEDERAL RE­ Chart Book. $6.00 per annum or $.60 a copy in SERVE SYSTEM. 1967. 16 pp. the United States and the countries listed above; PUBLISHED INTERPRETATIONS OF THE BOARD OF 10 or more of same issue sent to one address, GOVERNORS, as of Dec. 30, 1968. $2.50. $.50 each. Elsewhere, $7.00 per annum or $.70 TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 a copy. a copy; 10 or more sent to one address, $.85 HISTORICAL CHART BOOK. Issued annually in Sept. each. Subscription to monthly chart book includes one issue. $.60 a copy in the United States and U.S. TREASURY ADVANCE REFUNDING, JUNE countries listed above; 10 or more sent to one 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 address, $.50 each. Elsewhere, $.70 a copy. or more sent to one address, $.40 each. FLOW OF FUNDS IN THE UNITED STATES, 1939­ THE PERFORMANCE OF BANK HOLDING COM­ 53. 1955. 390 pp. $2.75. PANIES. 1967. 29 pp. $.25 a copy; 10 or more DEBITS AND CLEARING STATISTICS AND THEIR sent to one address, $.20 each. USE. 1959. 144 pp. $1.00 a copy; 10 or more BANK CREDIT-CARD AND CHECK-CREDIT PLANS. sent to one address, $.85 each. 1968. 102 pp. $1.00 a copy; 10 or more sent to THE FEDERAL FUNDS MARKET. 1959. Ill pp. one address, $.85 each. $1.00 a copy; 10 or more sent to one address, $.85 each. INTEREST RATE EXPECTATIONS: TESTS ON YIELD INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. SPREADS AMONG SHORT-TERM GOVERNMENT SECURITIES. 1968. 83 pp. $.50 a copy; 10 or 172 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. more sent to one address, $.40 each. THE FEDERAL RESERVE ACT, as amended through SURVEY OF FINANCIAL CHARACTERISTICS OF Nov. 5, 1966, with an appendix containing pro­ CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or visions of certain other statutes affecting the more sent to one address, $.85 each. Federal Reserve System. 353 pp. $1.25. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. SUPPLEMENT TO BANKING AND MONETARY STA­ 321 pp. $1.00 a copy; 10 or more sent to one TISTICS. Sec. 1. Banks and the Monetary Sys­ address, $.85 each. tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 REPORT OF THE JOINT TREASURY-FEDERAL RE­ pp. $.35. Sec. 6. Bank Income 1966. 29 pp. SERVE STUDY OF THE U.S. GOVERNMENT SE­ $.35. Sec. 9. Federal Reserve Banks. 1965. 36 CURITIES MARKET. 1969. 64 pp. $.50 a copy; pp. $.35. Sec. 10. Member Bank Reserves and 10 or more sent to one address, $.40 each. Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ REAPPRAISAL OF THE FEDERAL RESERVE DIS­ rency. 1963. 11 pp. $.35. Sec. 12. Money Rates COUNT MECHANISM: and Securities Markets. 1966. 182 pp. $.65. REPORT OF A SYSTEM COMMITTEE. 1968. 23 Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ pp. $.25 a copy; 10 or more sent to one ad­ national Finance. 1962. 92 pp. $.65. Sec. 16 dress, $.20 each. (New). Consumer Credit. 1965. 103 pp. $.65. BANK MERGERS & THE REGULATORY AGENCIES: REPORT ON RESEARCH UNDERTAKEN IN CON­ APPLICATION OF THE BANK MERGER ACT OF NECTION WITH A SYSTEM STUDY. 1968. 47 1960. 1964. 260 pp. $1.00 a copy; 10 or more pp. $.25 a copy; 10 or more sent to one sent to one address, $.85 each. address, $.20 each. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 96 FEDERAL RESERVE BULLETIN □ JUNE 1969 Limited supply of the following papers relating to Printed in full in the Bulletin. the Discount Study, in mimeographed or similar (Reprints available as shown in following list.) form, available upon request for single copies: EVOLUTION OF THE ROLE AND FUNCTIONING REPRINTS OF THE DISCOUNT MECHANISM. 1968. 65 pp. (From Federal Reserve Bulletin unless preceded by an asterisk.) ' A STUDY OF THE MARKET FOR FEDERAL FUNDS. 1968. 47 pp. ADJUSTMENT FOR SEASONAL VARIATION. Descrip­ tion of method used by Board in adjusting eco­ THE SECONDARY MARKET FOR NEGOTIABLE nomic data for seasonal variations. June 1941. CERTIFICATES OF DEPOSIT. 1968. 89 pp. 11 PP. THE DISCOUNT MECHANISM IN LEADING IN­ SEASONAL FACTORS AFFECTING BANK RESERVES. DUSTRIAL COUNTRIES SINCE WORLD WAR II. Feb. 1958. 12 pp. 1968. 216 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by RESERVE ADJUSTMENTS OF THE EIGHT MAJOR Stephen H. Axilrod. Oct. 1961, 17 pp. NEW YORK CITY BANKS DURING 1966. 1968. 29 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. DISCOUNT POLICY AND OPEN MARKET OPERA­ TIONS. 1968. 23 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. THE REDESIGNED DISCOUNT MECHANISM AND THE MONEY MARKET. 1968. 29 pp. RECENT CHANGES IN LIQUIDITY, Staff Paper by Daniel H. Brill. June 1963. 10 pp. SUMMARY OF THE ISSUES RAISED AT THE ACA­ DEMIC SEMINAR ON DISCOUNTING. 1968. MEASURES OF MEMBER BANK RESERVES. July 16 pp. 1963. 14 pp. A REVIEW OF RECENT ACADEMIC LITERATURE MEASURING AND ANALYZING ECONOMIC GROWTH, ON THE DISCOUNT MECHANISM. 1968. 40 pp. Staff Paper by Clayton Gehman. Aug. 1963. 14 pp. DISCOUNT POLICY AND BANK SUPERVISION. 1968. 72 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept, 1963. 8 pp. ECONOMIC CHANGE AND ECONOMIC ANALYSIS, STAFF ECONOMIC STUDIES Staff Paper by Frank R. Garfield. Sept. 1963. Studies and papers on economic and financial sub­ 17 PPjects that are of general interest in the field of economic research. THE OPEN MARKET POLICY PROCESS. Oct. 1963. 11 PP- YIELD DIFFERENTIALS IN TREASURY BILLS, 1959­ Summaries only printed In the Bulletin. 64, Staff Paper by Samuel I. Katz. Oct. 1964. (Limited supply of mimeographed copies of full 20 pp. text available upon request for single copies.) REVISION OF BANK DEBITS AND DEPOSIT TURN­ MEASURES OF INDUSTRIAL PRODUCTION AND OVER SERIES. Mar. 1965. 4 pp. FINAL DEMAND, by Clayton Gehman and Cor­ nelia Motheral. Jan. 1967. TIME DEPOSITS IN MONETARY ANALYSIS, Staff Economic Study by Lyle E. Gramley and THE LABOR MARKET AND POTENTIAL OUTPUT OF Samuel B. Chase, Jr. Oct. 1965. 25 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL: A PRELIMINARY REPORT, by A. J. Telia CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ and P. A. Tinsley. Aug. 1968. ING WORLD, Staff Paper by Frank R. Garfield. Nov. 1965. 15 pp. THE REGULATION OF SHORT-TERM CAPITAL MOVE­ MENTS: WESTERN EUROPEAN TECHNIQUES IN RESEARCH ON BANKING STRUCTURE AND PER­ THE 1960's, by Rodney H. Mills, Jr. Sept. 1968. FORMANCE, Staff Economic Study by Tynan Smith. Apr. 1966. 11 pp. A TECHNIQUE FOR FORECASTING DEFENSE EX­ PENDITURES, by Harvey Galper and Edward COMMERCIAL BANK LIQUIDITY, Staff Economic Gramlich. Oct. 1968. Study by James Pierce. Aug. 1966. 9 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 97 TOWARD UNDERSTANDING QF THE WHOLE DE­ MONETARY RESTRAINT AND BORROWING AND VELOPING ECONOMIC SITUATION, Staff Eco­ CAPITAL SPENDING BY LARGE STAtE AND nomic Study by Frank R. Garfield. Nov. 1966. LOCAL GOVERNMENTS IN 1966. July 1968. 14 pp. 30 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, RECENT CHANGES IN STRUCTURE OF TiME AND Staff Economic Study by Frank de Leeuw with SAVINGS DEPOSITS. July 1968. 20 pp. Frank E. Hopkins and Michael D. Sherman. REVISED SERIES ON BANK CREDIT. Aug. 1968. Nov. 1966. 11 pp. 4 PP- THE ROLE OF FINANCIAL INTERMEDIARIES IN FEDERAL FISCAL POLICY IN THE 1960's. Sept. U.S. CAPITAL MARKETS, Staff Economic Study 1968. 18 pp. by Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. 14 pp. HOW DOES MONETARY POLICY AFFECT THE revised Series on commercial and indus­ ECONOMY? Staff Economic Study by Maurice Mann. Oct. 1968. 12 pp, trial LOANS BY INDUSTRY. Feb. 1967. 2 pp. BUSINESS FINANCING BY BUSINESS FINANCE AUTO LOAN CHARACTERISTICS AT MAJOR SALES COMPANIES. Oct. 1968. 13 pp. FINANCE COMPANIES. Feb. 1967. 5 pp. ECONOMIC UPSWING IN WESTERN EUROPE. Nov. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. 1968. 17 pp. 1967. 26 pp. MANUFACTURING CAPACITY: A COMPARISON OF MONETARY POLICY AND ECONOMIC ACTIVITY: A TWO SOURCES OF INFORMATION, Staff Eco­ POSTWAR REVIEW. May 1967. 22 pp. nomic Study by Jared J. Enzler. Nov. 1968. MONETARY POLICY AND THE RESIDENTIAL MORT­ 5 PP- GAGE MARKET. May 1967. 13 pp. MONETARY RESTRAINT, BORROWING, AND CAP­ BANK FINANCING OF AGRICULTURE. June 1967. ITAL SPENDING BY SMALL LOCAL GOVERN­ 23 pp. MENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. EVIDENCE ON CONCENTRATION IN BANKING MARKETS AND INTEREST RATES, Staff Eco­ REVISION OF CONSUMER CREDIT STATISTICS. nomic Study by Almarin Phillips. June 1967. Dec. 1968. 21 pp. 11 PP- FINANCIAL DEVELOPMENTS IN THE FOURTH NEW BENCHMARK PRODUCTION MEASURES, 1958 QUARTER OF 1968. Feb. 1969. 9 ftp. AND 1963. June 1967. 4 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, REVISED INDEXES OF MANUFACTURING CAPACITY APRIL-OCTOBER 1968. Mar. 1969. 21 pp. AND CAPACITY UTILIZATION. July 1967. 3 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ CHANGE OPERATIONS. Mar. 1969. 18 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. INTEREST COST EFFECTS OF COMMERCIAL BANK 7 PP- UNDERWRITING OF MUNICIPAL REVENUE BALANCE OF PAYMENTS PROGRAM: REVISED BONDS. Aug. 1967. 16 pp. GUIDELINES FOR BANKS AND NONBANK FI­ 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. FINANCIAL DEVELOPMENTS IN THE FIRST QUAR­ U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN TER OF 1969. May 1969. 8 pp. 1960-67. Apr. 1968. 23 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, BANKING AND MONETARY STATISTICS, 1967. OCTOBER 1968-JANUARY 1969. May 1969. Selected series of banking and monetary statis­ 15 pp. tics for 1967 only. Mar. and May 1968. 20 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ REVISION OF MONEY SUPPLY SERIES. June 1968. nomic Study by Frank de Leeuw and Edward 6 PP- Gramlich. June 1969. 20 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BULLETIN □ JUNE 1969 PERIODIC RELEASES WEEKLY CONSUMER INSTALMENT CREDIT AT COMMER­ CIAL BANKS (G.18) APPLICATIONS AND REPORTS RECEIVED, OR ACTED ON, BY THE BOARD (H.2) DEBITS, DEMAND DEPOSITS, AND TURNOVER AT 233 INDIVIDUAL CENTERS (G.ll) ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (H.8) FEDERAL RESERVE PAR LIST (Also annual list) (G.3) COMMERCIAL AND INDUSTRIAL LOANS OUT­ STANDING BY INDUSTRY (H.12) INTERDISTRICT SETTLEMENT FUND (G.15) CONDITION REPORT OF LARGE COMMERCIAL INDEX NUMBERS OF WHOLESALE PRICES (G.8) BANKS IN NEW YORK AND CHICAGO (H.4,3) MATURITY DISTRIBUTION OF OUTSTANDING NE­ CONDITION REPORT OF LARGE COMMERCIAL GOTIABLE TIME CERTIFICATES OF DEPOSIT BANKS (H.4.2) (G.9) DEMAND DEPOSITS, CURRENCY, AND RELATED MONTHLY FOREIGN EXCHANGE RATES (G.5) ITEMS (H.6) NATIONAL SUMMARY OF BUSINESS CONDITIONS DEPOSITS, RESERVES, AND BORROWINGS OF (G.12.2) MEMBER BANKS (H.7) OPEN MARKET MONEY RATES AND BOND PRICES FACTORS AFFECTING BANK RESERVES AND CON­ (G.13) DITION STATEMENT OF F. R. BANKS (H.4.1) SALES FINANCE COMPANIES (G.20) RESERVE POSITIONS OF MAJOR RESERVE CITY STATE MEMBER BANKS OF THE FEDERAL RE­ BANKS (H.5) SERVE SYSTEM AND NONMEMBER BANKS THAT MAINTAIN CLEARING ACCOUNTS WITH FEDERAL WEEKLY FOREIGN EXCHANGE RATES (H.IO) RESERVE BANKS (Also annual list) (G.4) WEEKLY SUMMARY OF BANKING AND CREDIT SUMMARY OF EQUITY SECURITY TRANSACTIONS MEASURES (H.9) (G.16) WEEKLY U.S. GOVERNMENT SECURITY YIELDS MONTHLY U.S. GOVERNMENT SECURITY YIELDS AND PRICES (H.15) AND PRICES (G.14) SEMIMONTHLY—IRREGULAR QUARTERLY—SEMIANNUALLY CHANGES IN STATE MEMBER BANKS (K.3) ALL BANKS IN THE UNITED STATES AND OTHER RESEARCH LIBRARY—RECENT ACQUISITIONS (J.2) AREAS—PRINCIPAL ASSETS AND LIABILITIES, BY STATES (E.4) MONTHLY BANK RATES ON SHORT-TERM BUSINESS LOANS (E.2) AGGREGATE RESERVES AND MEMBER BANK DE­ POSITS (G.10) CAPACITY UTILIZATION IN MANUFACTURING (E.5) SUMMARY REPORT—ASSETS AND LIABILITIES OF ASSETS AND LIABILITIES OF ALL MEMBER BANKS, MEMBER BANKS (E.3.1) BY DISTRICTS (G.7.1) ASSETS AND LIABILITIES OF ALL MEMBER BANKS, AUTOMOBILE LOANS BY MAJOR SALES FINANCE BY CLASS OF BANK (E.3.4) COMPANIES (G.25) SALES, PROFITS, AND DIVIDENDS OF LARGE COR­ AUTOMOBILE INSTALMENT* CREDIT DEVELOP­ PORATIONS (E.6) MENTS (G.26) BANK DEBITS AND DEPOSIT TURNOVER (G.6) ANNUALLY BUSINESS INDEXES (G.12.3) BANK DEBITS TO DEMAND DEPOSIT ACCOUNTS CONSUMER CREDIT (G.19) EXCEPT INTERBANK AND U.S. GOVERNMENT CONSUMER CREDIT AT CONSUMER FINANCE ACCOUNTS (C.5) COMPANIES (G.22) MEMBER BANK INCOME (C.4) 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, blit 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 Bank holding companies, list of, Dec, 31, 1968, 91 Bankers’ balances, 25, 27 Earnings and hours, manufacturing industries, 63 (See also Foreign liabilities and claims) Employment, 60, 62, 63 Banks and the monetary system, 18 Banks for cooperatives, 37 Bonds (See also U.S. Govt, securities): Farm mortgage loans, 48, 49 New issues, 43, 44, 45 Federal finance: Yields and prices, 32, 33 Cash transactions, 38 Branch banks, liabilities of U.S. banks to their foreign Receipts and expenditures, 39 branches, 29, 83 Treasurer’s balance, 38 Business expenditures on new plant and equipment, 47 Federal funds, 8, 24, 31 Business indexes, 60 Federal home loan banks, 37, 49 Business loans (See Commercial and industrial loans) Federal Housing Administration, 48, 49, 50, 51 Federal intermediate credit banks, 37 Federal land banks, 37 Capacity utilization, 60 Federal National Mortgage Assn., 37, 51 Capital accounts: Federal Reserve Banks: Banks, by classes, 19, 25, 29 Condition statement, 12 Federal Reserve Banks, 12 U.S. Govt, securities held, 4, 12, 15, 40, 41 Central banks, foreign, 86, 88 Federal Reserve credit, 4, 12, 15 Certificates of deposit, 29 Federal Reserve notes, 12, 16 Coins, circulation, 16 Federally sponsored credit agencies, 37 Commercial and industrial loans: Finance company paper, 31, 35 Commercial banks, 24 Financial institutions, loans to, 24, 26 Weekly reporting banks, 26, 30 Float, 4 Commercial banks: Flow of funds, 68 Assets and liabilities, 19, 24, 26 Foreign currency operations, 12, 14, 73, 78 Consumer loans held, by type, 53 Foreign deposits in U.S. banks, 4, 12, 18, 25, 28, 83 Deposits at, for payment of personal loans, 23 Foreign exchange rates, 90 Number, by classes, 19 Foreign liabilities and claims: Real estate mortgages held, by type, 48 Banks, 29, 74, 75, 77, 79, 81, 83 Commercial paper, 31, 35 Nonbanking concerns, 84 Condition statements (See Assets and liabilities) Foreign trade, 71 Construction, 60, 61 Consumer credit: Instalment credit, 52, 53, 54, 55 Noninstalment credit, by holder, 53 Gold: Certificates, 12, 16 Consumer price indexes, 60, 64 Earmarked, 83 Consumption expenditures, 66, 67 Net purchases by U.S., 72 Corporations: Production, 87 Sales, profits, taxes, and dividends, 46, 47 Reserves of central banks and govts., 86 Security issues, 44, 45 Stock, 4, 18, 73 Security yields and prices, 32, 33 Government National Mortgage Association, 51 Cost of living (See Consumer price indexes) Gross national product, 66,67 Currency and coin, 4, 10, 25 Currency in circulation, 4,16,17 Customer credit, stock market, 34 Hours and earnings, manufacturing industries, 63 Housing permits, 60 Housing starts, 61 Debits to deposit accounts, 15 Debt (See specific types of debt or securities) Demand deposits: Adjusted, banks and the monetary system, 18 Adjusted, commercial banks, 15, 17, 25 Banks, by classes, 11, 19, 25, 28 Subject to reserve requirements, 17 Turnover, 15 )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 19-A hguorht 4-A segap ot era secnerefeR( Income, national and personal, 66, 67 Industrial production index, 56, 60 Instalment loans, 52, 53, 54, 55 Insurance companies, 36, 40, 41, 49 Insured commercial banks, 21, 23, 24 Interbank deposits, 11, 19, 25 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN □ JUNE 1969 )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 19-A hguorht 4-A segap ot era secnerefeR( Interest rates: Reserve position, basic, member banks, 8 Business loans by banks, 31 Reserve requirements, member banks, 10 Federal Reserve Bank discount rates, 9 Reserves: Foreign countries, 88, 89 Central banks and govts., 86 Money market rates, 31, 89 Commercial banks, 25, 27 Mortgage yields, 51 Federal Reserve Banks, 12 Prime rate, commercial banks, 31 Member banks, 4, 6, 11, 17, 25 Time deposits, maximum rates, 11 Residential mortgage loans, 33, 48, 49, 50 Yields, bond and stock, 32. Retail credit, 52 International capital transactions of the U.S., 74 Retail sales, 60 International institutions, 72, 73, 86, 88 Inventories, 66 Investment companies, issues and assets, 45 Sales finance companies, loans, 52, 53, 55 Investments (See also specific types of investments): Saving: Banks, by classes, 19, 24, 27, 35 Flow of funds series, 68 Commercial banks, 23 National income series, 67 Federal Reserve Banks, 12, 15 Savings and loan assns., 36, 41, 49 Life insurance companies, 36 Savings deposits (See Time deposits) Savings and loan assns., 36 Savings institutions, principal assets, 35, 36 Securities (See also U.S. Govt, securities): Labor force, 62 Federally sponsored agencies, 37 Loans (See also specific types of loans): International transactions, 82, 83 Banks, by classes, 19, 24, 26, 35 New issues, 43, 44, 45 Commercial banks, 19, 23, 24, 26, 30 Silver coin and silver certificates, 16 Federal Reserve Banks, 4, 12, 15 State and local govts.: Insurance companies, 36, 49 Deposits, 25, 28 Insured or guaranteed by U.S., 48, 49, 50, 51 Holdings of U.S. Govt, securities, 40, 41 Savings and loan assns., 36, 49 New security issues, 43, 44 Ownership of securities of, 24, 27, 35, 36 Yields and prices of securities, 32, 33 Manufacturers: State member banks, 21, 23 Capacity utilization, 60 Stock market credit, 34 Production index, 57, 60 Stocks: Margin requirements, 10 New issues, 44, 45 Member banks: Yields and prices, 32, 33 Assets and liabilities, by classes, 19, 24 Borrowings at Reserve Banks, 6, 12 Deposits, by classes, 11 Number, by classes, 19 Tax receipts, Federal, 39 Reserve position, basic, 8 Time deposits, 11, 17,18, 19, 25, 28 Reserve requirements, 10 Treasurer’s account balance, 38 Reserves and related items, 4, 17 Treasury cash, Treasury currency, 4, 16, 18 Mining, production index, 57, 60 Treasury deposits, 4, 12, 38 Mobile home shipments, 61 Money rates (See Interest rates) Money supply and related data, 17 Unemployment, 62 Mortgages (See Real estate loans and residential mort­ U.S. balance of payments, 70 gage loans) U.S. Govt, balances: Mutual funds (See Investment companies) Commercial bank holdings, 25, 28 Mutual savings banks, 18, 19, 22, 35, 40, 41, 48 Consolidated condition statement, 18 Member bank holdings, 17 National banks, 21, 23 Treasury deposits at Federal Reserve Banks, 4, National income, 66, 67 12, 38 National security expenditures, 39, 66 U.S. Govt, securities: Nonmember banks, 21, 23, 24, 25 Bank holdings, 18, 19, 24, 27, 35, 40, 41 Dealer transactions, positions, and financing, 42 Federal Reserve Bank holdings, 4, 12, 15, 40, 41 Open market transactions, 14 Foreign and international holdings, 12, 78, 82, 83 International transactions, 78, 82 Payrolls, manufacturing, index, 60 New issues, gross proceeds, 44 Personal income, 67 Open market transactions, 14 Postal Savings System, 18 Outstanding, by type of security, 40, 41, 43 Prices: Ownership of, 40, 41 Consumer and wholesale commodity, 60, 64 Yields and prices, 32, 33, 89 Security, 33 United States notes, 16 Prime rate, commercial banks, 31 Utilities, production index, 57, 60 Production, 56, 60 Profits, corporate, 46, 47 Veterans Administration, 48, 49, 50, 51 Real estate loans: Banks, by classes, 24, 26, 35, 48 Delinquency rates on home mortgages, 50 Weekly reporting banks, 26 Mortgage yields, 51 Type of holder and property mortgaged, 48, 49, 50, 51 Yields (See Interest rates) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

boundaries of federal reserve districts and their branch territories 9 > A € THE FEDERAL RESERVE SYSTEM . Legend —— Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories Board of Governors of the Federal Reserve System . 0 @ Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis